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A9 COPELAND "ANTI -KICKBACK" ACT <br />A9.1 SOURCE <br />2 CFR § 200, Appendix ll(D) <br />29 CFR Parts 3 and 5 <br />A9.2 APPLICABILITY and PURPOSE <br />The Copeland (Anti -Kickback) Act (18 USC 874 and 40 USC 3145) makes it unlawful to induce by force, <br />intimidation, threat of dismissal from employment, or by any other manner, any person employed in the <br />construction or repair of public buildings or public works, financed in whole or in part by the United <br />States, to give up any part of the compensation to which that person is entitled under a contract of <br />employment. The Copeland Act also requires each contractor and subcontractor to furnish weekly a <br />statement of compliance with respect to the wages paid each employee during the preceding week. <br />Contract Types — <br />Construction — This provision applies to all construction contracts and subcontracts financed <br />under the AIP that exceed $2,000. <br />Equipment—This provision applies to all equipment installation projects (e.g. electrical vault <br />improvements) financed under the AIP that exceed $2,000. This provision does not apply to <br />equipment acquisitions where the equipment is manufactured at the vendor's plant (e.g. SRE <br />and ARFF vehicles). <br />Professional Services—The emergence of different project delivery methods has created <br />situations where Professional Service Agreements (PSAs) include tasks that meet the definition <br />of construction, alteration, or repair as defined in 29 CFR Part 5. If such tasks result in work that <br />qualifies as construction, alteration, or repair and it exceeds $2,000, the PSA must incorporate <br />the Copeland Anti -kickback provision. <br />Property—Ordinarily, land acquisition projects would not involve employment of laborers or <br />mechanics and thus the Copeland Anti -Kickback provision would not apply. However, land <br />projects that involve installation of boundary fencing and demolition of structures would involve <br />laborers and mechanics. The sponsor must include this provision if the land acquisition project <br />involves employment of laborers or mechanics for a contract exceeding $2,000. <br />Use of Provision — MANDATORY TEXT. 29 CFR Part 5 establishes specific language a sponsor must use <br />in construction contracts. The sponsor may not make any modification to the standard language. <br />Architectural/Engineering (A/E) firms that employ laborers and mechanics on a task that meets the <br />definition of construction, alteration, or repair are acting as a contractor. The sponsor may not <br />substitute the term "contractor" for "consultant" in such instances. <br />Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects <br />Issued on December 12, 2017 Page 27 <br />