View all text of Chapter 63 [§ 3701 - § 3724]
§ 3719. Prize competitions
(a) Definitions
In this section:
(1) Agency
(2) Director
(3) Federal agency
(4) Head of an agency
(b) In general
(c) Prize competitions
For purposes of this section, a prize competition may be 1 or more of the following types of activities:
(1) A point solution prize that rewards and spurs the development of solutions for a particular, well-defined problem.
(2) An exposition prize competition that helps identify and promote a broad range of ideas and practices that may not otherwise attract attention, facilitating further development of the idea or practice by third parties.
(3) Participation prize competitions that create value during and after the competition by encouraging contestants to change their behavior or develop new skills that may have beneficial effects during and after the competition.
(4) Such other types of prize competitions as each head of an agency considers appropriate to stimulate innovation that has the potential to advance the mission of the respective agency.
(d) Topics
(e) Advertising
(f) Requirements and registration
For each prize competition, the head of an agency shall publish a notice on a publicly accessible Government website, such as www.challenge.gov, announcing—
(1) the subject of the prize competition;
(2) the rules for being eligible to participate in the prize competition;
(3) the process for participants to register for the prize competition;
(4) the amount of the cash prize purse or non-cash prize award; and
(5) the basis on which a winner will be selected.
(g) Eligibility
To be eligible to win a cash prize purse under this section, an individual or entity—
(1) shall have registered to participate in the prize competition under any rules promulgated by the head of an agency under subsection (f);
(2) shall have complied with all the requirements under this section;
(3) in the case of a private entity, shall be incorporated in and maintain a primary place of business in the United States, and in the case of an individual, whether participating singly or in a group, shall be a citizen or permanent resident of the United States; and
(4) may not be a Federal entity or Federal employee acting within the scope of their employment.
(h) Consultation with Federal employees
(i) Liability
(1) In general
(A) Definition
(B) Liability
(2) Insurance
Participants shall be required to obtain liability insurance or demonstrate financial responsibility, in amounts determined by the head of an agency, for claims by—
(A) a third party for death, bodily injury, or property damage, or loss resulting from an activity carried out in connection with participation in a prize competition, with the Federal Government named as an additional insured under the registered participant’s insurance policy and registered participants agreeing to indemnify the Federal Government against third party claims for damages arising from or related to prize competition activities; and
(B) the Federal Government for damage or loss to Government property resulting from such an activity.
(3) Waivers
(A) In general
(B) List
(4) Exception
(j) Intellectual property
(1) Prohibition on the government acquiring intellectual property rights
(2) Licenses
(k) Judges
(1) In general
(2) Restrictions
A judge may not—
(A) have personal or financial interests in, or be an employee, officer, director, or agent of any entity that is a registered participant in a prize competition; or
(B) have a familial or financial relationship with an individual who is a registered participant.
(3) Guidelines
(4) Exemption from chapter 10 of title 5
(l) Administering the competition
(m) Funding
(1) In general
(2) Availability of funds
(3) Amount of prize
(A) Announcement
(B) Increase in amount
The head of an agency may increase the amount of a cash prize purse or non-cash prize award after an initial announcement is made under subsection (f) only if—
(i) notice of the increase is provided in the same manner as the initial notice of the prize competition; and
(ii) the funds needed to pay out the announced amount of the increase have been appropriated or committed in writing by a private or State, United States territory, local, or tribal government source.
(4) Limitation on amount
(A) Notice to Congress
(B) Approval of head of agency
(n) General Services Administration assistance
(o) Compliance with existing law
(1) In general
(2) Other prize authority
(p) Biennial report
(1) In general
(2) Information included
A report under this subsection shall include, for each prize competition under subsection (b), the following:
(A) Proposed goals
(B) Preferable method
(C) Amount of cash prize purses or non-cash prize awards
(D) Solicitations and evaluation of submissions
(E) Resources
(F) Results
(G) Plan
(Pub. L. 96–480, § 24, as added Pub. L. 111–358, title I, § 105(a), Jan. 4, 2011, 124 Stat. 3989; amended Pub. L. 114–329, title IV, § 401(b), Jan. 6, 2017, 130 Stat. 3016; Pub. L. 117–286, § 4(a)(71), Dec. 27, 2022, 136 Stat. 4313.)