; and (2) had more than $5,000,000 in research and development expenditures in any of the previous five years. (c) Sanctions for noncompliance (1) In general As a sanction for noncompliance with the requirements under this section, the Secretary may impose a fine on an institution that in any year knowingly or willfully violates this section, in an amount that is not less than $250 but not more than $1,000. (2) Second failure In addition to a fine for a violation in accordance with paragraph (1), the Secretary shall impose a fine on an institution that knowingly, willfully, and repeatedly fails to comply with the requirements of this section in a second consecutive year in an amount that is not less than $1,000 but not more than $25,000. (3) Third and additional failures In addition to a fine for a violation in accordance with paragraph (1) or (2), the Secretary shall impose a fine on an institution that knowingly, willfully, and repeatedly fails to comply with the requirements of this section in a third consecutive year, or any consecutive year thereafter, in an amount that is not less than $25,000 but not more than $50,000. (4) Administrative failures The Secretary shall impose a fine on an institution that fails in 3 consecutive years to comply with the requirements of this section in an amount that is not less than $250 but not more than $25,000. (5) Compliance plan requirement An institution that fails to comply with the requirements under this section for 2 consecutive years shall be required to submit a compliance plan to the Secretary. (d) Definitions In this section— (1) the terms foreign source and gift have the meaning given the terms in section 117; (2) the term contract means any— (A) agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties