Page:United States Statutes at Large Volume 108 Part 4.djvu/671

 PUBLIC LAW 103-355—OCT. 13, 1994 108 STAT. 3305 liens and is effective immediately upon the first payment, without filing, notice, or other action by the United States. "(2) Advance payments made under subsection (a) for commercial items may include pa3anents, in a total amount of not more / than 15 percent of the contract price, in advance of any performance of worit under the contract. / "(3) The conditions of subsections (d) and (e) need not be applied / if they would be inconsistent, as determined by the head of the executive agency, with commercial terms and conditions pursuant to paragraphs (1) and (2).". "(g) ACTION IN CASE OF FRAUD.— (1) In any case in which the remedy coordination official of an executive agency finds that there is substantial evidence that the request of a contractor for advance, partial, or progress pajm[ient under a contract awarded by that executive agency is based on fraud, the remedy coordination ^ official shall recommend that the executive agency reduce or suspend further payments to such contractor. "(2) The head of an executive agency receiving a recommendation under paragraph (1) in the case of a contractor's request for payment under a contract shall determine whether there is substantial evidence that the request is based on fraud. Upon making such a determination, the head of the executive agency may reduce or suspend further payments to the contractor under such contract. "(3) The extent of any reduction or suspension of pa3nnents by an executive agency under paragraph (2) on the basis of fraud shall be reasonably commensurate with the anticipated loss to the United States resulting from the fraud. "(4) A written justification for each decision of the head of an executive agency whether to reduce or suspend payments under paragraph (2), and for each recommendation received by the executive agency in connection with such decision, shall be prepared and be retained in the files of the executive agency. "(5) The head of each executive agency shall prescribe procedures to ensure that, before the head of the executive agency decides to reduce or suspend pa3nnents in the case of a contractor under paragraph (2), the contractor is afforded notice of the proposed reduction or suspension and an opportunity to submit matters to the executive agency in response to such proposed reduction or suspension. "(6) Not later than 180 days after the date on which the head of an executive agency reduces or suspends payments to a contractor under paragraph (2), the remedy coordination official of the executive agency shall— "(A) review the determination of fraud on which the reduction or suspension is based; and "(B) transmit a recommendation to the head of such executive agency whether the suspension or reduction should continue. "(7) The head of each executive agency who receives recommendations made by a remedy coordination official of the executive agency to reduce or suspend payments under paragraph (2) during a fiscal year shall prepare for such year a report that contains the recommendations, the actions taken on the recommendations and the reasons for such actions, and an assessment of the effects of such actions on the Federal Government. Any

�