Pub. L. 83-179, tit. VI, sec. 626

Sec. 626. No part of any money appropriated to the Department of Defense for the current fiscal year shall be expended under any contract (other than a contract for personal services) entered into after the enactment of this Act unless such contract urovides— (1) that the Government may, by written notice to the contractor, terminate the right of such contractor to proceed under such contract if it is found, after notice and hearing, by the Secretary of the military department with which the contract is made, or his designee, that gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by such contractor, or any agent or representative of such contractor, to any officer or employee of the Government with a view toward securing a contract or securing favorable treatment with respect to the awarding or amending, or the making of any determinations with respect to the performing, of such contract: Provided, That the existence of the facts upon which such Secretary makes such findings shall be in issue and may be reviewed in any competent court. (2) that in the event any such contract is so terminated the Government shall be entitled, (A) to pursue the same remedies against the contractor as it could pursue in the event of a breach of the contract by the contractor, and (B) as a penalty in addition to any other damages to which it may be entitled by law, to exemplary damages in an amount not less than three nor more than ten times (as determined by the Secretary or his designee) the costs incurred by any such contractor in providing any such gratuities to any such officer or employee.