Page:United States Statutes at Large Volume 100 Part 5.djvu/464

 100 STAT. 3938

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10 USC 2397c.

Ante, p. 3936.

PUBLIC LAW 99-661—NOV. 14, 1986

opinion furnished to any person under this subsection that this section is inapplicable to the acceptance of compensation by such person from a contractor in a particular case, there shall be a conclusive presumption in favor of such person, for the purposes of this section, that the person's acceptance of such compensation in such case is not a violation of subsection (a)(1). "(f) In this section: "(1) The term 'compensation' includes any payment, gift, benefit, reward, favor, or gratuity— "(A) which is provided, directly or indirectly, for services rendered by the person accepting such payment, gift, benefit, reward, favor, or gratuity; and "(B) which is valued in excess of $250 at the prevailing market price. f "(2)(A) The term 'contractor' means a person— "(i) that contracts to supply the Department of Defense with goods or services; • "(ii) that controls or is controlled by a person described in clause (i); or "(iii) that is under common control with a person 'i described in clause (i). "(B) Such term does not include— "1 "(i) an affiliate or subsidiary of a person described in subparagraph (A) that is clearly not engaged in the performance of a Department of Defense contract; or ' i"(ii) a State or local government. "(3) The term 'procurement function' includes, with respect to a contract, any function relating to— "(A) the negotiation, award, administration, or approval of the contract; "(B) the selection of a contractor; "(C) the approval of changes in the contract; t / "(D) quality assurance, operational and developmental testing, the approval of payment, or auditing under the "•• contract; or "(E) the management of the procurement program. "(4) The term 'armed forces' does not include the Coast Guard. i "(5) The term 'major defense system' has the meaning given the term 'major system' in section 2302(5) of this title. "(g) For the purposes of this section, a person who is a retired member or a former member of the armed forces shall be considered to have been separated from service in the Department of Defense upon the date of the person's discharge or release from active duty. "§ 2397c. Defense contractors: requirements concerning former Department of Defense officials "(a)(1) Each contract for the procurement of goods or services in excess of $100,000 entered into by the Department of Defense shall include a provision under which the contractor agrees not to provide compensation to a person if the acceptance of such compensation by such person would violate section 2397b(a)(l) of this title. "(2) Such a contract shall also provide that if the contractor knowingly violates a contract provision required by paragraph (1) the contractor shall pay to the United States, as liquidated damages under the contract, an amount equal to the greater of— "(A) $100,000; or

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