" ! HOUSE OF REPRESENTATIVES 109TH CONGRESS

2d Session 

REPORT

109–663 

TO ENACT CERTAIN LAWS RELATING TO 

PUBLIC CONTRACTS AS TITLE 41, UNITED 

STATES CODE, ‘‘PUBLIC CONTRACTS’’ 

R E P O R T 

OF THE

COMMITTEE ON THE JUDICIARY 

HOUSE OF REPRESENTATIVES 

TO ACCOMPANY

H.R. 5414 

SEPTEMBER 15, 2006.—Referred to the House Calendar and ordered to 

be printed 


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TO ENACT CERTAIN LAWS RELATING TO PUBLIC CONTRACTS AS TITLE 41, 

UNITED STATES CODE, ‘‘PUBLIC CONTRACTS’’ 


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1 

49–006 

" ! HOUSE OF REPRESENTATIVES 109TH CONGRESS

2d Session 

REPORT

2005

109–663 

TO ENACT CERTAIN LAWS RELATING TO 

PUBLIC CONTRACTS AS TITLE 41, UNITED 

STATES CODE, ‘‘PUBLIC CONTRACTS’’

R E P O R T 

OF THE

COMMITTEE ON THE JUDICIARY 

HOUSE OF REPRESENTATIVES 

TO ACCOMPANY

H.R. 5414 

SEPTEMBER 15, 2006.—Referred to the House Calendar and ordered to 

be printed 


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jcorcoran on PRODPC62 with HEARING
109TH CONGRESS HOUSE OF REPRESENTATIVES REPORT " ! 2d Session No. 109–663 

TO ENACT CERTAIN LAWS RELATING TO PUBLIC CONTRACTS AS TITLE 41, UNITED STATES CODE, ‘‘PUBLIC 

CONTRACTS’’

SEPTEMBER 15, 2006.—Referred to the House Calendar and ordered to be printed 

Mr. SENSENBRENNER, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

[To accompany H.R. 5414] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on the Judiciary, to whom was referred the bill 

(H.R. 5414) to enact certain laws relating to public contracts as 

title 41, United States Code, ‘‘Public Contracts’’, having considered 

the same, reports favorably thereon and recommends that the bill 

do pass. 

CONTENTS

Page 

Background .............................................................................................................. 2 

Conformity With Original Intent ........................................................................... 2 

Hearings ................................................................................................................... 3 

Committee Consideration ........................................................................................ 3 

Vote of the Committee ............................................................................................. 3 

Committee Oversight Findings ............................................................................... 3 

New Budget Authority and Tax Expenditures ...................................................... 3 

Congressional Budget Office Estimate ................................................................... 3 

Performance Goals and Objectives ......................................................................... 4 

Constitutional Authority Statement ...................................................................... 4 

Disposition Table ..................................................................................................... 4 

Section-by-Section Explanation .............................................................................. 12 

Changes in Existing Law Made by the Bill, as Reported ..................................... 82 

Markup Transcript .................................................................................................. 83 


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BACKGROUND

The bill revises and restates certain laws relating to public contracts and enacts those provisions as title 41, United States Code. 

The bill was prepared by the Office of the Law Revision Counsel 

of the House of Representatives as part of its functions under section 285b of title 2, United States Code, to submit to the Committee on the Judiciary bills to enact the titles of the United States 

Code into positive law. 

A predecessor bill, H.R. 4320, was introduced in the 108th Congress on May 10, 2004. Upon introduction of that bill, Chairman 

Sensenbrenner inserted a statement in the Congressional Record 

inviting review and comment and also sent a letter inviting review 

and comment to various congressional Committees, government 

agencies, and private organizations thought to be interested in the 

bill. Comments were to be submitted to the Office of the Law Revision Counsel. 

The Office of the Law Revision Counsel studied all of the comments submitted and discussed them as necessary with those submitting the comments in order to achieve a satisfactory resolution. 

Many of the comments resulted in changes in the bill or in the accompanying section-by-section explanation of the bill. 

The current bill, H.R. 5414, is an updated version of the bill introduced in the House in the prior Congress. 

CONFORMITY WITH ORIGINAL INTENT

In the drafting, the intent is to comply with the standard in section 285b(1) of title 2, United States Code, which provides that the 

restatement of existing law shall conform to ‘‘the understood policy, 

intent, and purpose of the Congress in the original enactments, 

with such amendments and corrections as will remove ambiguities, 

contradictions, and other imperfections’’. 

In restating existing law, this bill consolidates various provisions 

of law which have been enacted separately over a period of many 

years. To restate these various provisions of law as a cohesive unit, 

it is necessary to makes changes in organization, style, and terminology. In addition, obsolete language has been eliminated and errors in the law have been corrected. These changes are not intended, however, to lead to changes in result, and therefore they 

should not impair the precedential value of earlier judicial decisions or other interpretations. 

The following authorities are relevant to an interpretation of the 

general intent of codification legislation: 

Finley v. United States, 490 U.S. 545 (1989). 

Tidewater Oil Co. v. U.S., 409 U.S. 151, 161, 162 (1972). 

Fourco Glass Co. v. Transmirra Products Corp., 353 U.S. 

222, 227 (1957). 

United States v. Sischo, 262 U.S. 165, 168 (1923). 

United States v. Ryder, 110 U.S. 729, 740 (1884). 

McDonald v. Hovey, 110 U.S. 619, 628 (1884). 

Smythe v. Fiske, 23 Wall. 374, 382 (1874). 

Stewart v. Kahn, 11 Wall. 493, 502 (1871). 


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Atchison, Topeka and Santa Fe Railway Co. v. United States, 

617 F. 2d 485, 490, 491 (7th Cir. 1980). 

Trailer Marine Transport Corp. v. Federal Maritime Commission, 602 F. 2d 379, 383 (D.C. Cir. 1979). 

Norman J. Singer, Sutherland Statutory Construction, 

§§ 28.10, 28.11 (6th ed. 2002). 

HEARINGS

No hearings were held on H.R. 5414. 

COMMITTEE CONSIDERATION

At a meeting of the Committee on the Judiciary on July 19, 2006, 

a quorum being present, H.R. 5414 was approved by a voice vote 

and ordered reported. 

VOTE OF THE COMMITTEE

In compliance with clause 3 (b) of rule XIII of the Rules of the 

House of Representatives, the Committee notes that there were no 

recorded votes during the Committee consideration of H.R. 5414. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee reports that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives is inapplicable because H.R. 5414 does not provide new 

budget authority or an increase in tax expenditures. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, the Committee sets forth, with respect to 

the bill, H.R. 5414, the following estimate and comparison prepared 

by the Director of the Congressional Budget Office under section 

402 of the Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, August 15, 2006. 

Hon. F. JAMES SENSENBRENNER, Jr., Chairman, 

Committee on the Judiciary, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5414, a bill to enact certain laws relating to public contracts as title 41, United States 

Code, ‘‘Public Contracts.’’


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If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford, who 

can be reached at 226–2860. 

Sincerely, 

DONALD B. MARRON, ACTING DIRECTOR. 

Enclosure 

cc: Honorable John Conyers, Jr. 

Ranking Member 

H.R. 5414—A bill to enact certain laws relating to public contracts 

as title 41, United States Code, ‘‘Public Contracts’’ 

H.R. 5414 would revise and restate certain federal laws and 

would enact those provisions into law as title 41, United States 

Code. In restating existing law, the legislation would make technical changes to the law involving public contracts that would primarily affect organization, style, and terminology. CBO estimates 

that enacting this bill would result in no cost to the federal government and would not affect direct spending or revenues. 

H.R. 5414 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of State, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford, who 

can be reached at 226–2860. This estimate was approved by Peter 

H. Fontaine, Deputy Assistant Director for Budget Analysis. 

PERFORMANCE GOALS AND OBJECTIVES

In compliance with clause 3(c) (4) of Rule XIII of the Rules of the 

House of Representatives, the Committee reports that the bill, H.R. 

5414, completes codification of title 41, United States Code, ‘‘Public 

Contracts.’’ H.R. 5414 makes technical and conforming amendments to existing law and consolidates various provisions of law 

which have been enacted separately over many years. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legislation in article I, section 8 of the Constitution. 

DISPOSITION TABLE

The table below shows a disposition for each section of the 

United States Code affected by the bill. In addition, with respect 

to provisions of law set out as notes in the United States Code, the 

table shows a disposition for each provision restated as part of title 

41. 

Where the disposition column shows a title 41 citation, it means 

the provision of law classified to the former United States Code 

section is being restated and reenacted as part of title 41 by section 

3 of the bill. The provision is also included in the Schedule of Laws 

Repealed in section 8 of the bill. 

Where the disposition column shows ‘‘Obsolete’’, ‘‘Superseded’’, or 

‘‘Unnecessary’’, it means the provision of law classified to the 

former United States Code section is being omitted from the proVerDate Aug 31 2005 04:03 Sep 16, 2006 Jkt 049006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6601 E:\HR\OC\HR663.XXX HR663

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posed revised title but is included in the Schedule of Laws Repealed in section 8 of the bill. 

Where the disposition column shows ‘‘Limited interest’’ or ‘‘Temporary’’ or recommends transfer to another title, it means the provision of law classified to the former United States Code section is 

being omitted from the proposed revised title and is not included 

in the Schedule of Laws Repealed in section 8 of the bill. 

Disposition Table 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

1 to 4a ...................................................................................... Previously repealed. 

5, 5a ......................................................................................... 6101 

6 ................................................................................................ Previously repealed. 

6a(a) ......................................................................................... 6102 

6a(b) to (e) ............................................................................... Previously repealed. 

6a(f) .......................................................................................... 6102 

6a(g) ......................................................................................... Previously repealed. 

6a(h) ......................................................................................... 6102 

6a(i) .......................................................................................... Previously repealed. 

6a(j) .......................................................................................... 6102 

6a(k) to (n) ............................................................................... Previously repealed. 

6a(o) ......................................................................................... Superseded. Most recently based on Public Law 85–75, 

§ 101 (last par. on p. 251), July, 1, 1957, 71 Stat. 251, 

provided that 41:5 would not apply to the Architect of the 

Capitol in the purchase of supplies and equipment or the 

procurement of services when the aggregate amount of 

supplies and equipment or services did not exceed 

$1,000. Superseded by 41:6a–1. 

6a(p) ......................................................................................... Previously repealed. 

6a–1 .......................................................................................... 6102 

6a–2 .......................................................................................... Transfer to 2:1816 

6a–3, 6a–4 ............................................................................... 6102 

6b(a) ......................................................................................... Obsolete. Provided that materials and equipment needed for 

control of emergency outbreaks of insects could be procured, without regard to 41:5, using amounts appropriated to carry out 7:148–148e. Provisions classified to 

7:148–148e have previously been repealed. 

6b(b) ......................................................................................... Obsolete. Provided that 41:5 would not apply to certain expenditures related to the Civilian Conservation Corps. The 

Corps was liquidated June 30, 1944. 

6b(c) .......................................................................................... Limited interest. Provides that 41:5 does not apply to contracts for labor or supplies necessary to carry out operations on the Menominee Indian Reservation pursuant to 

‘‘the Act of March 28, 1908 (35 Stat. 51)’’ (probably 

means the Act of March 28, 1908, ch. 111, 35 Stat. 51, 

which is not classified to the Code). 

6b(d) ......................................................................................... 6102 

6b(e) .......................................................................................... Obsolete. Provision, which related to the employment of experts or consultants in the Canal Zone, was from the 

General Government Matters Appropriation Act, 1962 

(Public Law 87–125, title III, § 301, 75 Stat. 279). The 

provision was not repeated in subsequent appropriation 

acts and expired on June 30, 1962. 

6c to 6jj .................................................................................... Previously repealed. 


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Disposition Table—Continued 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

6kk ............................................................................................ Superseded. Provisions classified to this section were contained in annual appropriation Acts. The provisions created an exemption from 41:5 and 41:16 for certain purchases for the Botanic Garden when the amount involved 

did not exceed $50. With respect to an exemption from 

41:5, the section appears to have been previously repealed by the Act of August 2, 1946, ch. 744, § 9(b), 60 

Stat. 809. In any event, the section was superseded by 

41:6a(b), which was subsequently repealed by the Act of 

October 31, 1951, ch. 654, § 1(107), 65 Stat. 705. 

6ll ............................................................................................ Previously repealed. 

6mm .......................................................................................... Previously transferred to 41:6b(d) prior to repeal. 

7 to 7d ...................................................................................... Previously repealed. 

8 ................................................................................................ 6103 

9 ................................................................................................ Previously repealed. 

10 .............................................................................................. Superseded. Provision related to preferential treatment of 

American material in contracts for public improvements. 

Superseded by 41:10a et seq. 

10a ............................................................................................ 8302 

10b ............................................................................................ 8303 

10b–1 ........................................................................................ Obsolete. Provided that a Federal agency shall not award 

certain procurement contracts. This section ceased to be 

effective on April 30, 1996. See section 7004 of Public 

Law 100–418 (102 Stat. 1552). 

10b–2 ........................................................................................ 8304 

10b–3 ........................................................................................ 8305 

10c ............................................................................................ 8301 

10d ............................................................................................ 8303 

11 .............................................................................................. 6301 

11a ............................................................................................ 6302 

12 .............................................................................................. 6303 

13 .............................................................................................. 6304 

13a ............................................................................................ Previously repealed. 

14 .............................................................................................. 6301 

15 .............................................................................................. 6305 

16 .............................................................................................. Previously repealed. 

16a ............................................................................................ Obsolete. Section authorized purchases by the Department of 

the Interior without compliance with 41:16, which was repealed. 

16b ............................................................................................ Obsolete. Section authorized purchases by the Botanic Garden without compliance with 41:16, which was repealed. 

16c ............................................................................................ Obsolete. Section authorized purchases by the Architect of 

the Capitol without compliance with 41:16, which was repealed. 

16d ............................................................................................ Obsolete. Section authorized purchases by the Bureau of 

Reclamation without compliance with 41:16, which was 

repealed. 

17 to 21 .................................................................................... Previously repealed. 

22 .............................................................................................. 6306 

23 .............................................................................................. 6307 

24 .............................................................................................. 6308 

24a ............................................................................................ Obsolete. Provided for cancellation on or before March 31, 

1936, of contracts for transportation entered into prior to 

June 16, 1933. 

25 to 27 .................................................................................... Previously repealed. 

28 to 33 .................................................................................... Obsolete. The Act of June 16, 1934, ch. 553, 48 Stat. 974, 

consisting of sections 1 through 6, which were classified 

to 41:28 through 41:33, respectively, provided for settlement of certain claims related to contracts with the Federal Government made prior to August 10, 1933. 


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Disposition Table—Continued 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

34 .............................................................................................. Obsolete. Provision, consisting of the Act of August 29, 

1935, ch. 815, 49 Stat. 990, provided that bids made 

subject to codes of fair competition prior to August 29, 

1935 should not be rejected where bidder agreed to be 

subject to Acts requiring observance of minimum wages, 

maximum hours, or limitations as to age of employees in 

performance of contracts with Federal agencies. Table III 

of the Code indicates that provision is classified to 41:28 

through 41:34. However, provision is classified only to 

41:34. See text in 1940 edition of the Code and source 

credits. 

35 (matter before subsec. (a) less words related to definition of ‘‘agency of the United States’’).6502 

35 (matter before subsec. (a) related to definition of ‘‘agency of the United States’’).6501 

35(a) to (d) ............................................................................... 6502 

36 .............................................................................................. 6503 

37 .............................................................................................. 6504 

38 .............................................................................................. 6506 

39 .............................................................................................. 6507 

40 .............................................................................................. 6508 

41 .............................................................................................. 6501 

42 .............................................................................................. 6511 

43 .............................................................................................. 6505 

43a(a) ....................................................................................... 6509 

43a(b) (1st sentence) ............................................................... 6507 

43a(b) (last sentence), (c) ....................................................... 6509 

43b ............................................................................................ 6510 

44 .............................................................................................. Unnecessary. Severability provisions of laws included in the 

codification are unnecessary. 

45 .............................................................................................. 6502 

46 .............................................................................................. 8502

47 .............................................................................................. 8503 

48 .............................................................................................. 8504 

48a ............................................................................................ 8505 

48b ............................................................................................ 8501 

48c ............................................................................................ 8506 

49, 50 ....................................................................................... 6309 

51 .............................................................................................. Unnecessary. Short titles of laws included in the codification 

are unnecessary. 

52 .............................................................................................. 8701 

53 .............................................................................................. 8702 

54 .............................................................................................. 8707 

55 .............................................................................................. 8706 

56 .............................................................................................. 8705 

57 .............................................................................................. 8703 

58 .............................................................................................. 8704 

101, 102(a) ............................................................................... Obsolete. Provided for the settlement of claims under terminated contracts for war production during World War II. 

102(b) ....................................................................................... Previously repealed. 

103 ............................................................................................ Obsolete. Provided for the settlement of claims under terminated contracts for war production during World War II. 

104(a) ....................................................................................... Previously repealed. 

104(b) to 113(c) ....................................................................... Obsolete. Provided for the settlement of claims under terminated contracts for war production during World War II. 

113(d) ....................................................................................... Obsolete. Provided for the appointment and dutes of an Appeal Board. The Appeal Board was abolished no later 

than 9 months after July 14, 1952. 

113(e) to 115 ............................................................................ Obsolete. Provided for the settlement of claims under terminated contracts for war production during World War II. 

116 ............................................................................................ Previously repealed. 

117, 118(a) ............................................................................... Obsolete. Provided for the settlement of claims under terminated contracts for war production during World War II. 

118(b) ....................................................................................... Previously repealed. 


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Disposition Table—Continued 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

118(c) to 125 ............................................................................ Obsolete. Provided for the settlement of claims under terminated contracts for war production during World War II. 

151 to 162 ................................................................................ Previously repealed. 

201 to 205 ................................................................................ Previously transferred to 40:471 to 475 prior to repeal. 

211 to 213 ................................................................................ Previously transferred to 40:751 to 753 prior to repeal. 

214 ............................................................................................ Previously transferred to 44:391 prior to repeal. 

215 ............................................................................................ Previously transferred to 5:630c prior to repeal. 

216 ............................................................................................ Previously transferred to 5:630d and 40:754 prior to repeal. 

217 ............................................................................................ Previously transferred to 5:630e and 40:755 prior to repeal. 

218 ............................................................................................ Previously transferred to 5:630f prior to repeal. 

219 ............................................................................................ Previously transferred to 5:630g and 40:756 prior to repeal. 

231 to 237 ................................................................................ Previously transferred to 40:481 to 488 prior to repeal. 

238 ............................................................................................ Previously transferred to 5:630h and 40:758 prior to repeal. 

239 to 240 ................................................................................ Previously transferred to 40:489 to 492 prior to repeal. 

251 ............................................................................................ Unnecessary. Sets out the purpose of the subchapter. 

252(a) ....................................................................................... 3101 

252(b) ....................................................................................... 3104 

252(c)(1) ................................................................................... 3106 

252(c)(2) ................................................................................... 3301 

252a, 252b ............................................................................... 3101 

252c .......................................................................................... 4709 

253(a) ....................................................................................... 3301 

253(b) ....................................................................................... 3302 

253(c) to (f) .............................................................................. 3303 

253(g) ....................................................................................... 3304 

253(h) ....................................................................................... 3301 

253(i) ........................................................................................ 3105 

253a .......................................................................................... 3305 

253a note (Pub. L. 108–136, § 1428) ..................................... 3305 

253b(a), (b) .............................................................................. 3701 

253b(c) ...................................................................................... 3702 

253b(d) ..................................................................................... 3703 

253b(e) ...................................................................................... 3704 

253b(f) ...................................................................................... 3705 

253b(g) (related to 41:253b(e)) ............................................... 3704 

253b(g) (related to 41:253b(f)) ................................................ 3705 

253b(h) ..................................................................................... 3706 

253b(i) ...................................................................................... 3707 

253b(j) ...................................................................................... 3307 

253b(k), (l) .............................................................................. 3708 

253b(m) .................................................................................... 4702 

253c .......................................................................................... 3310 

253d .......................................................................................... 4703 

253e .......................................................................................... Previously repealed. 

253f ........................................................................................... 3309 

253g .......................................................................................... 4704 

253h .......................................................................................... 4103 

253h note (Pub. L. 103–355, § 1054(b)) ................................. 4102 

253h note (Pub. L. 106–65, § 804) ......................................... 4104 

253i ........................................................................................... 4105 

253j ........................................................................................... 4106 

253k .......................................................................................... 4101 

253l ......................................................................................... 3902 

253l–1 to 253l–8 .................................................................... 3904 

253m ......................................................................................... 3308 

254(a) ....................................................................................... 3901 

254(b) ....................................................................................... 3905 

254a .......................................................................................... 4708 

254b(a) ..................................................................................... 3502 

254b(b) ..................................................................................... 3503 

254b(c) ...................................................................................... 3504 

254b(d) ..................................................................................... 3505 

254b(e) ...................................................................................... 3506 

254b(f) ...................................................................................... 3507 

254b(g) ..................................................................................... 3508 


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Disposition Table—Continued 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

254b(h) ..................................................................................... 3501 

254c .......................................................................................... 3903 

254d .......................................................................................... 4706 

255(a) ....................................................................................... 4501 

255(b), (c) ................................................................................. 4502 

255(d) ....................................................................................... 4503 

255(e) ........................................................................................ 4504 

255(f) ........................................................................................ 4505 

255(g) ....................................................................................... 4506 

256(a) to (d) ............................................................................. 4303 

256(e) ........................................................................................ 4304 

256(f) ........................................................................................ 4305 

256(g) ....................................................................................... 4306 

256(h) ....................................................................................... 4307 

256(i) ........................................................................................ 4308 

256(j) ........................................................................................ 4309 

256(k) ........................................................................................ 4310 

256(l)(1) .................................................................................. 4301 

256(l)(2) .................................................................................. 4302 

256(m) ...................................................................................... 4301 

256a .......................................................................................... 4707 

257 ............................................................................................ 4701 

258 ............................................................................................ Previously repealed. 

259(a) ....................................................................................... 151 

259(b) ....................................................................................... 152 

259(c)(1) ................................................................................... 111 

259(c)(2) ................................................................................... 112 

259(c)(3) ................................................................................... 114 

259(c)(4) ................................................................................... 107 

259(c)(5) ................................................................................... 113 

259(c)(6) ................................................................................... 116 

259(c)(7) ................................................................................... 109 

259(c)(8), (9) ............................................................................ 108 

259(c)(10) ................................................................................. 115 

259(c)(11) ................................................................................. 103 

259(c)(12) ................................................................................. 110 

259(c)(13) ................................................................................. 102 

259(c)(14) ................................................................................. 105 

259(d) ....................................................................................... 153 

259(e) ........................................................................................ 106 

260 ............................................................................................ 3101 

261 ............................................................................................ 3102 

262 ............................................................................................ 4701 

263 ............................................................................................ 3103 

264 ............................................................................................ 3306 

264 note (Pub. L. 103–355, § 8002) ....................................... 3306 

264a (‘‘commercial item’’) ....................................................... 103 

264a (‘‘nondevelopmental item’’) ............................................. 110 

264a (‘‘component’’) ................................................................. 105 

264a (‘‘commercial component’’) ............................................. 102 

264b .......................................................................................... 3306 

265 ............................................................................................ 4705 

266 ............................................................................................ 3105 

266a .......................................................................................... Temporary. Authorizes the head of an executive agency to 

enter into a share-in-savings contract for information 

technology. Those contracts may not be entered into after 

September 30, 2005. 

271 to 274 ................................................................................ Previously transferred to 40:511 to 514 prior to repeal. 

281 to 291 ................................................................................ Previously transferred to 44:392 to 402 prior to repeal. 


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Disposition Table—Continued 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

321 to 322 ................................................................................ Superseded. Provisions superseded by section 10 of the Contract Disputes Act of 1978 (41 U.S.C. 609). Congress intended to repeal provisions but, due to apparent oversight, repeal was not enacted. See Senate Report No. 95–

1118 (1978 U.S.C.C.A.N. p. 5235), especially page 34 

(‘‘Section 14(i) repeals 41 U.S.C. 321–322’’) and pages 

2, 3, 13 to 15, and 30. See also, Nash, Jr., Schooner, and 

O’Brien, Government Contracts Reference Book, 2d Ed., 

page 548. 

351(a) (words before par. (1) related to applicability) ........... 6702 

351(a) (words before par. (1) related to required contract 

terms), (1) to (5).

6703 

351(b) ....................................................................................... 6704 

352 ............................................................................................ 6705 

353 ............................................................................................ 6707 

354(a) ....................................................................................... 6706 

354(b) ....................................................................................... 6705 

355 ............................................................................................ 6707 

356 ............................................................................................ 6702 

357 ............................................................................................ 6701 

358 ............................................................................................ 6707 

401, 402 ................................................................................... Previously repealed. 

403(1) ....................................................................................... 133 

403(2) ....................................................................................... 111 

403(3) ....................................................................................... 112 

403(4) ....................................................................................... 114 

403(5) ....................................................................................... 132 

403(6) ....................................................................................... 107 

403(7) ....................................................................................... 113 

403(8) ....................................................................................... 116 

403(9) ....................................................................................... 109 

403(10) (‘‘item’’, ‘‘item of supply’’) ......................................... 108 

403(10) (‘‘supplies’’) ................................................................ 115 

403(11) ..................................................................................... 134 

403(12) ..................................................................................... 103 

403(13) ..................................................................................... 110 

403(14) ..................................................................................... 105 

403(15) ..................................................................................... 102 

403(16) ..................................................................................... 131 

403(17) ..................................................................................... 1301 

404(a) ....................................................................................... 1101 

404(b) ....................................................................................... 1102 

405(a) to (c) ............................................................................. 1121 

405(d), (e) ................................................................................. 1122 

405(f) ........................................................................................ 1121 

405(g) ....................................................................................... 1122 

405(h)(1) ................................................................................... 1130 

405(h)(2) ................................................................................... 2304 

405(i) ........................................................................................ 1125 

405(j) ........................................................................................ 1126 

405(k) ........................................................................................ 1131 

405 note (Pub. L. 108–136, § 1431(b)) ................................... 1129 

405a (1st sentence) ................................................................. 1121 

405a (last sentence) ................................................................ 1123 

405b .......................................................................................... 2303 

406 ............................................................................................ 1701 

407 ............................................................................................ Previously repealed. 

408 ............................................................................................ 1121 

409 ............................................................................................ Previously repealed. 

410 ............................................................................................ 1101 

411 ............................................................................................ 1122 

412(a) ....................................................................................... 2306 

412(b) ....................................................................................... 2305 

413 ............................................................................................ 1124 

414 ............................................................................................ 1702 


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Disposition Table—Continued 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

414a .......................................................................................... 1705 

414b(a) to (c) ........................................................................... 1311 

414b(d), (e) ............................................................................... 1312 

415 ............................................................................................ Previously repealed. 

416 ............................................................................................ 1707 

417 ............................................................................................ 1710 

417a .......................................................................................... 1711 

418 ............................................................................................ 1704 

418a .......................................................................................... 2302 

418b .......................................................................................... 1706 

419 ............................................................................................ 1708 

420 ............................................................................................ Previously repealed. 

421(a), (b) ................................................................................ 1302 

421(c) to (f) .............................................................................. 1303 

422(a) to (e) ............................................................................. 1501 

422(f) to (h)(1) ......................................................................... 1502 

422(h)(2) to (4) ........................................................................ 1503 

422(i) ........................................................................................ Expired. Required the Cost Accounting Standards Board to 

submit an annual report to Congress on the activities 

and operations of the Board. Section 3003 of the Federal 

Reports Elimination and Sunset Act of 1995 (31 U.S.C. 

1113 note) provided that subject to certain provisions, 

each provision of law requiring the submittal to Congress 

or a Committee of Congress of an annual, semiannual, or 

periodic report specified in the list prepared by the Clerk 

of the House of Representatives for the first session of 

the 103d Congress (House Document No. 103–7) ceased 

to be effective on May 15, 2000. 

422(j) ........................................................................................ 1504 

422(k) ........................................................................................ 1505 

422(l) ....................................................................................... 1506 

423(a), (b) ................................................................................ 2102 

423(c) ........................................................................................ 2103 

423(d) ....................................................................................... 2104 

423(e) ........................................................................................ 2105 

423(f) ........................................................................................ 2101 

423(g) ....................................................................................... 2106 

423(h) ....................................................................................... 2107 

424 ............................................................................................ Previously repealed. 

425 ............................................................................................ 1304 

426 ............................................................................................ 2301 

426a .......................................................................................... Previously repealed. 

427 ............................................................................................ 1901 

428 ............................................................................................ 1902 

428a .......................................................................................... 1903 

428a note (Pub. L. 108–136, § 1441) ..................................... 1904 

429 ............................................................................................ 1905 

430 ............................................................................................ 1906 

431(a), (b) ................................................................................ 1907 

431(c) ........................................................................................ 104 

431a .......................................................................................... 1908 

431a note (Pub. L. 108–375, § 807(c)) ................................... 1908 

432 ............................................................................................ 1709 

433 ............................................................................................ 1703 

433 notes (Pub. L. 108–136, §§ 1412(a), 1413) .................... 1703 

433 note (Pub. L. 108–136, § 1414) ....................................... 1128 

434 ............................................................................................ 2307 

435 ............................................................................................ 1127 

436 ............................................................................................ 2308 

437 ............................................................................................ 2309 

501 to 509 ................................................................................ Previously repealed. 

601 ............................................................................................ 6901 

602, 603 ................................................................................... 6902 

604, 605 ................................................................................... 6903 

606 ............................................................................................ 6904 


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Disposition Table—Continued 

Former United States Code Section 

(title 41 unless otherwise specified) Disposition 

607(a) to (e) ............................................................................. 6905 

607(f) ........................................................................................ 6906 

607(g) ....................................................................................... 6907 

607(h) ....................................................................................... 6905 

607(i) ........................................................................................ Obsolete. Required all agency boards of three or more full 

time members, except the agency board of the Tennessee 

Valley Authority, within 120 days after November 1, 1978, 

to develop workload studies for approval by agency head. 

608 ............................................................................................ 6906 

609(a) ....................................................................................... 6904 

609(b) to (f) .............................................................................. 6907 

610 ............................................................................................ 6905 

611, 611 note (Pub. L. 102–572, § 907(a)(3)) ........................ 6909 

612 ............................................................................................ 6908 

613 ............................................................................................ Unnecessary. Severability provisions of laws included in the 

codification are unnecessary. 

701 ............................................................................................ 8102 

702 ............................................................................................ 8103 

703 ............................................................................................ 8104 

704 ............................................................................................ 8105 

705 ............................................................................................ 8106 

706, 707 ................................................................................... 8101 

SECTION-BY-SECTION EXPLANATION

SECTION 1—TABLE OF CONTENTS

Section 1 of the bill provides a table of contents for the Act. 

SECTION 2—PURPOSE; CONFORMITY WITH ORIGINAL INTENT

Section 2(a) of the bill provides that the purpose is to revise, codify, and enact certain general and permanent existing laws related 

to public contracts as title 41, United States Code, ‘‘Public Contracts’’. 

Section 2(b) of the bill provides a statement of intent with respect to the codification of existing law (see ‘‘Conformity With 

Original Intent’’ above). 

SECTION 3—ENACTMENT OF TITLE 41, UNITED STATES CODE

Section 3 of the bill revises, codifies, and enacts certain general 

and permanent laws of the United States, related to public contracts, as title 41, United States Code. For each section of title 41, 

the source provision citations, along with any revision notes, are 

set out below. 

TITLE 41—PUBLIC CONTRACTS 

Subtitle Sec. 

I. FEDERAL PROCUREMENT POLICY ..................................................... 101 


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II. OTHER ADVERTISING AND CONTRACT PROVISIONS .................... 6101 

III. MISCELLANEOUS .................................................................................... 8101 

Subtitle I—Federal Procurement Policy 

PART A—GENERAL

Chapter Sec. 

1. Definitions ................................................................................................... 101 

PART B—OFFICE OF FEDERAL PROCUREMENT POLICY

11. Establishment of Office and Authority and Functions of Administrator ........................................................................................................ 1101 

13. Acquisition Councils ................................................................................... 1301 

15. Cost Accounting Standards ....................................................................... 1501 

17. Agency Responsibilities and Procedures .................................................. 1701 

19. Simplified Acquisition Procedures ............................................................ 1901 

21. Restrictions on Obtaining and Disclosing Certain Information ............. 2101 

23. Miscellaneous ............................................................................................. 2301 

PART C—PROCUREMENT

31. General ........................................................................................................ 3101 

33. Planning and Solicitation .......................................................................... 3301 

35. Truthful Cost and Pricing Data ................................................................ 3501 

37. Awarding of Contracts ............................................................................... 3701 

39. Specific Types of Contracts ........................................................................ 3901 

41. Task and Delivery Order Contracts .......................................................... 4101 

43. Allowable Costs .......................................................................................... 4301 

45. Contract Financing .................................................................................... 4501 

47. Miscellaneous ............................................................................................. 4701 

PART A—GENERAL

CHAPTER 1—DEFINITIONS 

SUBCHAPTER I—SUBTITLE DEFINITIONS 

Sec. 

101. Administrator. 

102. Commercial component. 

103. Commercial item. 

104. Commercially available off-the-shelf item. 

105. Component. 

106. Federal Acquisition Regulation. 

107. Full and open competition. 

108. Item and item of supply. 

109. Major system. 

110. Nondevelopmental item. 

111. Procurement. 

112. Procurement system. 

113. Responsible source. 

114. Standards. 

115. Supplies. 

116. Technical data. 

SUBCHAPTER II—PART B DEFINITIONS 

131. Acquisition. 

132. Competitive procedures. 

133. Executive agency. 

134. Simplified acquisition threshold. 

SUBCHAPTER III—PART C DEFINITIONS 

151. Agency head. 


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152. Competitive procedures. 

153. Simplified acquisition threshold. 

SUBCHAPTER I—SUBTITLE DEFINITIONS 

SECTION 101 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

101 ....................... no source. 

SECTION 102 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

102 ....................... 41:259(c)(13). June 30, 1949, ch. 288, title III, § 309(c)(13), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:264a (‘‘commercial 

component’’). 

June 30, 1949, ch. 288, title III, § 314A (‘‘commercial component’’), as added Pub. L. 103–

355, title VIII, § 8202, Oct. 13, 1994, 108 Stat. 

3394. 

41:403(15). Pub. L. 93–400, § 4(15), as added Pub. L. 103–

355, title VIII, § 8001(a), Oct. 13, 1994, 108 

Stat. 3386. 

SECTION 103 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

103 ....................... 41:259(c)(11). June 30, 1949, ch. 288, title III, § 309(c)(11), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:264a (‘‘commercial 

item’’). 

June 30, 1949, ch. 288, title III, § 314A (‘‘commercial item’’), as added Pub. L. 103–355, 

title VIII, § 8202, Oct. 13, 1994, 108 Stat. 

3394. 

41:403(12). Pub. L. 93–400, § 4(12), as added Pub. L. 103–

355, title VIII, § 8001(a), Oct. 13, 1994, 108 

Stat. 3385; Pub. L. 104–106, title XLII, 

§ 4204, Feb. 10, 1996, 110 Stat. 655; Pub. L. 

106–65, title VIII, § 805, Oct. 5, 1999, 113 

Stat. 705; Pub. L. 108–136, title XIV, § 1433, 

Nov. 24, 2003, 117 Stat. 1673. 

SECTION 104 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

104 ....................... 41:431(c). Pub. L. 93–400, § 35(c), as added Pub. L. 104–

106, title XLII, § 4203(a), Feb. 10, 1996, 110 

Stat. 655. 


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SECTION 105 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

105 ....................... 41:259(c)(14). June 30, 1949, ch. 288, title III, § 309(c)(14), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:264a (‘‘component’’). June 30, 1949, ch. 288, title III, § 314A (‘‘component’’), as added Pub. L. 103–355, title VIII, 

§ 8202, Oct. 13, 1994, 108 Stat. 3394. 

41:403(14). Pub. L. 93–400, § 4(14), as added Pub. L. 103–

355, title VIII, § 8001(a), Oct. 13, 1994, 108 

Stat. 3386. 

SECTION 106 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

106 ....................... 41:259(e). June 30, 1949, ch. 288, title III, § 309(e), as 

added Pub. L. 103–355, title I, § 1551, Oct. 

13, 1994, 108 Stat. 3299. 

The defined term is made applicable to the subtitle because of 

the numerous references throughout the Office of Federal Procurement Policy Act (Public Law 93–400, 88 Stat. 796), restated in part 

B of this subtitle, and especially because of sections 6(a) and 25(c) 

of the Act, restated in sections 1121 and 1303, respectively. 

SECTION 107 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

107 ....................... 41:259(c)(4). June 30, 1949, ch. 288, title III, § 309(c)(4), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:403(6). Pub. L. 93–400, § 4(6), formerly § 4(7), as added 

Pub. L. 98–369, title VII, § 2731(3), July 18, 

1984, 98 Stat. 1195; Pub. L. 98–577, title I, 

§ 102(1), Oct. 30, 1984, 98 Stat. 3067; redesignated as § 4(6), Pub. L. 100–679, § 3(c), Nov. 

17, 1988, 102 Stat. 4056; Pub. L. 103–355, 

title VIII, § 8001(b)(1)–(3), Oct. 13, 1994, 108 

Stat. 3386. 

SECTION 108 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

108 ....................... 41:259(c)(8), (9). June 30, 1949, ch. 288, title III, § 309(c)(8), (9), 

as added Pub. L. 98–369, title VII, 

§ 2711(a)(3), July 18, 1984, 98 Stat. 1180; 

Pub. L. 98–577, title V, § 504(a)(4), Oct. 30, 

1984, 98 Stat. 3086; Pub. L. 103–355, title I, 

§ 1551, Oct. 13, 1994, 108 Stat. 3299. 


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SECTION 108—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

41:403(10) (‘‘item’’, ‘‘item 

of supply’’). 

Pub. L. 93–400, § 4(10) (‘‘item’’, ‘‘item of supply’’), formerly § 4(11), as added Pub. L. 98–

577, title I, § 102(3), Oct. 30, 1984, 98 Stat. 

3067; redesignated as § 4(10), Pub. L. 100–

679, § 3(c), Nov. 17, 1988, 102 Stat. 4056; 

Pub. L. 103–355, title VIII, § 8001(b)(1), (2), 

(4), Oct. 13, 1994, 108 Stat. 3386. 

SECTION 109 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

109 ....................... 41:259(c)(7). June 30, 1949, ch. 288, title III, § 309(c)(7), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:403(9). Pub. L. 93–400, § 4(9), formerly § 4(10), as 

added Pub. L. 98–577, title I, § 102(3), Oct. 

30, 1984, 98 Stat. 3067; redesignated as 

§ 4(9), Pub. L. 100–679, § 3(c), Nov. 17, 1988, 

102 Stat. 4056; Pub. L. 103–355, title VIII, 

§ 8001(b)(1)–(3), Oct. 13, 1994, 108 Stat. 3386. 

SECTION 110 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

110 ....................... 41:259(c)(12). June 30, 1949, ch. 288, title III, § 309(c)(12), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:264a (‘‘nondevelopmental item’’). June 30, 1949, ch. 288, title III, § 314A (‘‘nondevelopmental item’’), as added Pub. L. 103–

355, title VIII, § 8202, Oct. 13, 1994, 108 Stat. 

3394. 

41:403(13). Pub. L. 93–400, § 4(13), as added Pub. L. 103–

355, title VIII, § 8001(a), Oct. 13, 1994, 108 

Stat. 3385. 

SECTION 111 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

111 ....................... 41:259(c)(1). June 30, 1949, ch. 288, title III, § 309(c)(1), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3298. 

41:403(2). Pub. L. 93–400, § 4(2), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 3, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 4, Dec. 1, 1983, 

97 Stat. 1326; Pub. L. 103–355, title VIII, 

§ 8001(b)(1)–(3), Oct. 13, 1994, 108 Stat. 3386. 


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SECTION 112 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

112 ....................... 41:259(c)(2). June 30, 1949, ch. 288, title III, § 309(c)(2), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:403(3). Pub. L. 93–400, § 4(3), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 3, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 4, Dec. 1, 1983, 

97 Stat. 1326; Pub. L. 103–355, title VIII, 

§ 8001(b)(1)–(3), Oct. 13, 1994, 108 Stat. 3386. 

SECTION 113 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

113 ....................... 41:259(c)(5). June 30, 1949, ch. 288, title III, § 309(c)(5), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:403(7). Pub. L. 93–400, § 4(7), formerly § 4(8), as added 

Pub. L. 98–369, title VII, § 2731(3), July 18, 

1984, 98 Stat. 1195; Pub. L. 98–577, title I, 

§ 102(2), Oct. 30, 1984, 98 Stat. 3067; redesignated as § 4(7), Pub. L. 100–679, § 3(c), Nov. 

17, 1988, 102 Stat. 4056; Pub. L. 103–355, 

title VIII, § 8001(b)(1)–(3), Oct. 13, 1994, 108 

Stat. 3386. 

SECTION 114 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

114 ....................... 41:259(c)(3). June 30, 1949, ch. 288, title III, § 309(c)(3), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:403(4). Pub. L. 93–400, § 4(4), formerly § 4(5), Aug. 30, 

1974, 88 Stat. 797; Pub. L. 96–83, § 3, Oct. 

10, 1979, 93 Stat. 649; Pub. L. 98–191, § 4, 

Dec. 1, 1983, 97 Stat. 1326; Pub. L. 98–369, 

title VII, § 2731(2), July 18, 1984, 98 Stat. 

1195; redesignated as § 4(4), Pub. L. 100–679, 

§ 3(c), Nov. 17, 1988, 102 Stat. 4056; Pub. L. 

103–355, title VIII, § 8001(b)(1), (2), (4), Oct. 

13, 1994, 108 Stat. 3386. 

SECTION 115 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

115 ....................... 41:259(c)(10). June 30, 1949, ch. 288, title III, § 309(c)(10) 

(‘‘supplies’’), as added Pub. L. 98–369, title 

VII, § 2711(a)(3), July 18, 1984, 98 Stat. 1180; 

Pub. L. 98–577, title V, § 504(a)(4), Oct. 30, 

1984, 98 Stat. 3086; Pub. L. 103–355, title I, 

§ 1551, Oct. 13, 1994, 108 Stat. 3299. 


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SECTION 115—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

41:403(10) (‘‘supplies’’). Pub. L. 93–400, § 4(10) (‘‘supplies’’), formerly 

§ 4(11), as added Pub. L. 98–577, title I, 

§ 102(3), Oct. 30, 1984, 98 Stat. 3067; redesignated as § 4(10), Pub. L. 100–679, § 3(c), Nov. 

17, 1988, 102 Stat. 4056; Pub. L. 103–355, 

title VIII, § 8001(b)(1), (2), (4), Oct. 13, 1994, 

108 Stat. 3386. 

SECTION 116 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

116 ....................... 41:259(c)(6). June 30, 1949, ch. 288, title III, § 309(c)(6), as 

added Pub. L. 98–369, title VII, § 2711(a)(3), 

July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, 

title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 

3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 

1994, 108 Stat. 3299. 

41:403(8). Pub. L. 93–400, § 4(8), formerly § 4(9), as added 

Pub. L. 98–577, title I, § 102(3), Oct. 30, 1984, 

98 Stat. 3067; redesignated as § 4(8), Pub. L. 

100–679, § 3(c), Nov. 17, 1988, 102 Stat. 4056; 

Pub. L. 103–355, title VIII, § 8001(b)(1)–(3), 

Oct. 13, 1994, 108 Stat. 3386. 

SUBCHAPTER II—PART B DEFINITIONS 

SECTION 131 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

131 ....................... 41:403(16). Pub. L. 93–400, § 4(16), as added Pub. L. 108–

136, title XIV, § 1411, Nov. 24, 2003, 117 

Stat. 1663. 

SECTION 132 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

132 ....................... 41:403(5). Pub. L. 93–400, § 4(5), formerly § 4(6), as added 

Pub. L. 98–369, title VII, § 2731(3), July 18, 

1984, 98 Stat. 1195; redesignated as § 4(5), 

Pub. L. 100–679, § 3(c), Nov. 17, 1988, 102 

Stat. 4056; Pub. L. 103–355, title VIII, 

§ 8001(b)(1)–(3), Oct. 13, 1994, 108 Stat. 3386. 

SECTION 133 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

133 ....................... 41:403(1). Pub. L. 93–400, § 4(1), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 3, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 4, Dec. 1, 1983, 

97 Stat. 1326; Pub. L. 103–355, title VIII, 

§ 8001(b)(1)–(3), Oct. 13, 1994, 108 Stat. 3386. 


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SECTION 134 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

134 ....................... 41:403(11). Pub. L. 93–400, § 4(11), as added Pub. L. 101–

510, title VIII, § 806(a)(1), Nov. 5, 1990, 104 

Stat. 1592; Pub. L. 103–355, title IV, § 4001, 

title VIII, § 8001(b)(1), (2), Oct. 13, 1994, 108 

Stat. 3338, 3386. 

SUBCHAPTER III—PART C DEFINITIONS 

SECTION 151 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

151 ....................... 41:259(a). June 30, 1949, ch. 288, title III, § 309(a), 63 

Stat. 397. 

SECTION 152 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

152 ....................... 41:259(b). June 30, 1949, ch. 288, § 309(b), as added Pub. 

L. 98–369, title VII, § 2711(a)(3), July 18, 

1984, 98 Stat. 1180; Pub. L. 98–577, 

§ 504(a)(3), Oct. 30, 1984, 98 Stat. 3086; Pub. 

L. 105–85, title X, § 1073(g)(1), Nov. 18, 1997, 

111 Stat. 1906. 

SECTION 153 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

153(1) ................... 41:259(d)(1). June 30, 1949, ch. 288, title III, § 309(d)(1), as 

added Pub. L. 103–355, title I, § 1551, Oct. 

13, 1994, 108 Stat. 3299; Pub. L. 104–201, 

title VIII, § 807(b)(1), (2), Sept. 23, 1996, 110 

Stat. 2606. 

153(2) ................... 41:259(d)(2). June 30, 1949, ch. 288, title III, § 309(d)(2), as 

added Pub. L. 104–201, title VIII, § 807(b)(3), 

Sept. 23, 1996, 110 Stat. 2606. 

PART B—OFFICE OF FEDERAL PROCUREMENT POLICY

CHAPTER 11—ESTABLISHMENT OF OFFICE AND 

AUTHORITY AND FUNCTIONS OF ADMINISTRATOR 

SUBCHAPTER I—GENERAL 

Sec. 

1101. Office of Federal Procurement Policy. 

1102. Administrator. 

SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR 

1121. General authority. 

1122. Functions. 

1123. Small business concerns. 

1124. Tests of innovative procurement methods and procedures. 

1125. Recipients of Federal grants or assistance. 

1126. Policy regarding consideration of contractor past performance. 

1127. Determining benchmark compensation amount. 

1128. Maintaining necessary capability with respect to acquisition of architectural 

and engineering services. 

1129. Center of excellence in contracting for services. 


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1130. Effect of part on other law. 

1131. Annual report. 

SUBCHAPTER I—GENERAL 

SECTION 1101 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1101(a), (b) .......... 41:404(a). Pub. L. 93–400, § (5)(a), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 104–106, title XLIII, § 4305(a)(1), 

Feb. 10, 1996, 110 Stat. 665. 

1101(c) ................. 41:410. Pub. L. 93–400, § 11, Aug. 30, 1974, 88 Stat. 

799; Pub. L. 96–83, § 7, Oct. 10, 1979, 93 Stat 

651; Pub. L. 98–191, § 6, Dec. 1, 1983, 97 Stat 

1329; Pub. L. 100–679, § 3(b), Nov. 17, 1988, 

102 Stat 4056; Pub. L. 104–106, title XLIII, 

§ 4305(c)(2), Feb. 10, 1996, 110 Stat. 665. 

SECTION 1102 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1102 ..................... 41:404(b). Pub. L. 93–400, § (5)(b), Aug. 30, 1974, 88 Stat. 

797. 

SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE 

ADMINISTRATOR 

SECTION 1121 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1121(a)–(c)(1) ....... 41:405(a). Pub. L. 93–400, § 6(a), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1326; Pub. L. 100–679, § 3(a)(1), Nov. 

17, 1988, 102 Stat. 4055. 

1121(c)(2) ............. 41:405a (1st sentence). Pub. L. 95–507, title II, § 222 (1st sentence), 

Oct. 24, 1978, 92 Stat. 1771. 

1121(c)(3) ............. 41:408. Pub. L. 93–400, § 9, Aug. 30, 1974, 88 Stat. 799. 

1121(d) ................. 41:405(b). Pub. L. 93–400, § 6(b), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1327; Pub. L. 100–679, § 3(a)(2), Nov. 

17, 1988, 102 Stat. 4055; Pub. L. 104–106, 

title XLIII, § 4322(a)(1), Feb. 10, 1996, 110 

Stat. 677. 

1121(e) ................. 41:405(f). Pub. L. 93–400, § 6(f), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1328; Pub. L. 100–679, § 3(a)(4), Nov. 

17, 1988, 102 Stat. 4056; Pub. L. 104–201, 

title X, § 1074(f)(1), Sept. 23, 1996, 110 Stat. 

2661. 

1121(f) .................. 41:405(c). Pub. L. 93–400, § 6(c), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1327. 

In subsection (c)(2), the text of 41:405a (1st sentence relating to 

promulgating a single, simplified, uniform Federal procurement 

regulation) is omitted as superseded by 41:405(a) because of section 

11 of the Office of Federal Procurement Policy Act Amendments of 

1979 (Public Law 96–83, 93 Stat. 652). 


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SECTION 1122 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1122(a) ................. 41:405(d). Pub. L. 93–400, § 6(d), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1327; Pub. L. 100–679, § 3(a)(3), Nov. 

17, 1988, 102 Stat. 4055; Pub. L. 103–355, 

title V, § 5091, title VII, § 7108, Oct. 13, 1994, 

108 Stat. 3361, 3378; Pub. L. 104–106, title 

XLIII, §§ 4307(b), 4321(h)(1), (2), Feb. 10, 

1996, 110 Stat. 668, 675; Pub. L. 105–85, title 

X, § 1073(g)(2)(B), Nov. 18, 1997, 111 Stat. 

1906; Pub. L. 105–135, title VI, § 604(f)(1), 

Dec. 2, 1997, 111 Stat. 2634. 

1122(b) ................. 41:405(e). Pub. L. 93–400, § 6(e), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1328; Pub. L. 98–369, title VII, 

§ 2732(b)(1), July 18, 1984, 98 Stat. 1199. 

1122(c)(1) ............. 41:405(g). Pub. L. 93–400, § 6(g), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1328. 

1122(c)(2)(A) ........ 41:411(b). Pub. L. 93–400, § 12, Aug. 30, 1974, 88 Stat. 

799; Pub. L. 96–83, § 8, Oct. 10, 1979, 93 

Stat. 652; Pub. L. 98–191, § 8(c), Dec. 1, 1983, 

97 Stat. 1331. 

1122(c)(2)(B) ........ 41:411(a). 

In clause (12), the words ‘‘small business concerns owned and 

controlled by service-disabled veterans’’ are added to conform to 

section 15(g)(1) of the Small Business Act (15:644(g)(1)). 

SECTION 1123 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1123 ..................... 41:405a (last sentence). Pub. L. 95–507, title II, § 222 (last sentence), 

Oct. 24, 1978, 92 Stat. 1771. 

SECTION 1124 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1124(a) ................. 41:413(a) (1st, 2d sentences). Pub. L. 93–400, § 15, as added Pub. L. 98–191, 

§ 7, Dec. 1, 1983, 97 Stat. 1329; Pub. L. 104–

201, title X, § 1074(f)(2), Sept. 23, 1996, 110 

Stat. 2661. 

1124(b) ................. 41:413(a) (last sentence). 

1124(c) ................. 41:413(b). 

In subsection (c), the words ‘‘Committee on Government Reform’’

are substituted for ‘‘Committee on Government Operations’’ on authority of section 1(a)(6) of Public Law 104–14 (2 U.S.C. note prec. 

21) and Rule X(1)(h) of the Rules of the House of Representatives, 

enacted by House Resolution No. 5 (106th Congress, January 6, 

1999). The words ‘‘Committee on Homeland Security and Governmental Affairs’’ are substituted for ‘‘Committee on Governmental 

Affairs’’ on authority of Senate Resolution No. 445 (108th Congress, 

October 9, 2004). 


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SECTION 1125 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1125(a) ................. 41:405(i)(1). Pub. L. 93–400, § 6(i), Aug. 30, 1974, 88 Stat. 

797; Pub. L. 96–83, § 4, Oct. 10, 1979, 93 

Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 1983, 

97 Stat. 1328. 

1125(b) ................. 41:405(i)(2). 

SECTION 1126 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1126(a) ................. 41:405(j)(1). Pub. L. 93–400, § 6(j), as added Pub. L. 103–

355, title I, § 1091(b)(2), Oct. 13, 1994, 108 

Stat. 3272. 

1126(b) ................. 41:405(j)(2). 

SECTION 1127 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1127(a)(1) ............. 41:435(b). Pub. L. 93–400, § 39, as added Pub. L. 105–85, 

title VIII, § 808(c)(1), Nov. 18, 1997, 111 Stat. 

1837; Pub. L. 105–261, title VIII, § 804(c)(1), 

Oct. 17, 1998, 112 Stat. 2083. 

1127(a)(2) ............. 41:435(c)(3). 

1127(a)(3) ............. 41:435(c)(1). 

1127(a)(4) ............. 41:435(c)(5). 

1127(a)(5) ............. 41:435(c)(4). 

1127(a)(6) ............. 41:435(c)(2). 

1127(b) ................. 41:435(a). 

SECTION 1128 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1128 ..................... 41:433 note. Pub. L. 108–136, title XIV, § 1414, Nov. 24, 

2003, 117 Stat. 1666. 

SECTION 1129 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1129 ..................... 41:405 note. Pub. L. 108–136, title XIV, § 1431(b), Nov. 24, 

2003, 117 Stat. 1671. 

The words ‘‘Not later than 180 days after the date of the enactment of this Act’’ are omitted, and the word ‘‘maintain’’ is substituted for ‘‘establish’’, to eliminate obsolete words. 

SECTION 1130 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1130 ..................... 41:405(h)(1). Pub. L. 93–400, § 6(h)(1), Aug. 30, 1974, 88 

Stat. 797; Pub. L. 96–83, § 4, Oct. 10, 1979, 

93 Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 

1983, 97 Stat. 1328; Pub. L. 104–106, title 

LVI, § 5607(d), Feb. 10, 1996, 110 Stat. 702. 


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SECTION 1131 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1131 ..................... 41:405(k). Pub. L. 93–400, § 6(k), as added Pub. L. 103–

355, title V, § 5051(b), Oct. 13, 1994, 108 Stat. 

3351; Pub. L. 105–85, title VIII, § 851(b), Nov. 

18, 1997, 111 Stat. 1851. 

CHAPTER 13—ACQUISITION COUNCILS 

SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY COUNCIL 

Sec. 

1301. Definition. 

1302. Establishment and membership. 

1303. Functions and authority. 

1304. Contract clauses and certifications. 

SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 

1311. Establishment and membership. 

1312. Functions. 

SUBCHAPTER I—FEDERAL ADQUISITION REGULATORY 

COUNCIL 

SECTION 1301 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1301 ..................... 41:403(17). Pub. L. 93–400, § 4(17), as added Pub. L. 108–

375, title VIII, § 807(b), Oct. 28, 2004, 118 

Stat. 2011. 

SECTION 1302 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1302(a) ................. 41:421(a). Pub. L. 93–400, § 25(a), (b), as added Pub. L. 

100–679, § 4, Nov. 17, 1988, 102 Stat. 4056; 

Pub. L. 101–510, title VIII, § 807, Nov. 5, 

1990, 104 Stat. 1593; Pub. L. 104–106, title 

XLIII, § 4322(a)(2), Feb. 10, 1996, 110 Stat. 

677. 

1302(b) ................. 41:421(b). 

In subsection (a), the words ‘‘(hereinafter in this section referred 

to as the ‘Council’)’’ are omitted as unnecessary. 

In subsection (b)(2)(A)(i), the words ‘‘Under Secretary of Defense 

for Acquisition, Technology, and Logistics’’ are substituted for 

‘‘Under Secretary of Defense for Acquisition and Technology’’ because of section 911(a)(1) of the National Defense Authorization Act 

for Fiscal Year 2000 (Public Law 106–65, 113 Stat. 717, 10 U.S.C. 

133 note). 

In subsection (b)(2)(A)(ii), the cross-reference to section 16(3) of 

the Office of Federal Procurement Policy Act (41:414(3)) is treated 

as a cross-reference to section 16(c) of the Act to reflect the amendment of section 16 by section 1421(a)(1) of the National Defense 

Authorization Act for Fiscal Year 2004 (Public Law 108–136, 117 

Stat. 1666). 


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SECTION 1303 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1303(a) ................. 41:421(c). Pub. L. 93–400, § 25(c)–(f), as added Pub. L. 

100–679, § 4, Nov. 17, 1988, 102 Stat. 4056; 

Pub. L. 104–201, title VIII, § 822, title X, 

§ 1074(f)(3), Sept. 23, 1996, 110 Stat. 2609, 

2661; Pub. L. 105–85, title VIII, § 841(d), Nov. 

18, 1997, 111 Stat. 1843. 

1303(b) ................. 41:421(d). 

1303(c) ................. 41:421(e). 

1303(d) ................. 41:421(f). 

In subsection (a)(6), the text of 41:421(c)(6) (last sentence) is 

omitted because 41:407 was repealed by section 4305(b) of the National Defense Authorization Act of Fiscal Year 1996 (Public Law 

104–106, 110 Stat. 665). 

In subsection (b)(1)(A), the words ‘‘after 60 days after November 

17, 1988’’ are omitted as obsolete. 

In subsection (b)(1)(B), the words ‘‘(as that term is defined in section 3502(11) of title 44)’’ are omitted because chapter 35 of title 

44 was amended generally by the Paperwork Reduction Act of 1995 

(Public Law 104–13, 109 Stat. 163) and 44:3502 no longer defines 

‘‘information collection request’’. The term ‘‘information collection 

request’’ is retained in this section of the revised title, however, because 44:ch. 35 still contains provisions about requests for collection of information. 

SECTION 1304 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1304(a) ................. 41:425(a). Pub. L. 93–400, § 29, as added Pub. L. 103–355, 

title I, § 1093, Oct. 13, 1994, 108 Stat. 3273; 

Pub. L. 104–106, title XLIII, § 4301(b)(2)(A), 

(c), Feb. 10, 1996, 110 Stat. 657, 658. 

1304(b)(1) ............. 41:425(b). 

1304(b)(2), (3) ...... 41:425(c). 

SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 

SECTION 1311 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1311(a) ................. 41:414b(a). Pub. L. 93–400, § 16A(a)–(c), as added Pub. L. 

108–136, title XIV, § 1422(a), Nov. 24, 2003, 

117 Stat. 1668. 

1311(b) ................. 41:414b(b)(1) (words before comma), (2)–(5). 

1311(c)(1) ............. 41:414b(b)(1) (words 

after comma). 

1311(c)(2) ............. 41:414b(c)(2). 

1311(c)(3) ............. 41:414b(c)(1). 

1311(c)(4) ............. 41:414b(c)(3). 

SECTION 1312 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1312(a) ................. 41:414b(d). Pub. L. 93–400, § 16A(d), (e), as added Pub. L. 

108–136, title XIV, § 1422(a), Nov. 24, 2003, 

117 Stat. 1668. 


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SECTION 1312—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1312(b) ................. 41:414b(e). 

CHAPTER 15—COST ACCOUNTING STANDARDS 

Sec. 

1501. Cost Accounting Standards Board. 

1502. Cost accounting standards. 

1503. Contract price adjustment. 

1504. Effect on other standards and regulations. 

1505. Examinations. 

1506. Authorization of appropriations. 

SECTION 1501 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1501(a) ................. 41:422(a)(1) (1st sentence). Pub. L. 93–400, § 26(a)–(e), as added Pub. L. 

100–679, § 5(a), Nov. 17, 1988, 102 Stat. 

4058. 

1501(b) ................. 41:422(a)(1) (last sentence), (2). 

1501(c) ................. 41:422(b). 

1501(d) ................. 41:422(c). 

1501(e) ................. 41:422(d). 

1501(f) .................. 41:422(e). 

In subsection (b)(2), the text of 41:422(a)(2)(C) is omitted as obsolete. 

In subsection (b)(2)(A), the last sentence is substituted for ‘‘of the 

initial members, two shall be appointed for terms of two years, one 

shall be appointed for a term of three years, and one shall be appointed for a term of four years’’ because the initial members have 

already been appointed. 

In subsection (c)(2), the reference to section 5376 of title 5 is substituted for the reference to grade GS–18 of the General Schedule 

because of section 529 [title I, § 101(c)(1)] of the Treasury, Postal 

Service, and General Government Appropriations Act, 1991 (Public 

Law 101–509, 104 Stat. 1442, 5:5376 note). 

In subsection (f)(1), the words ‘‘Except as otherwise provided in 

subsection (a) of this section’’ are omitted because 41:422(a) does 

not provide any relevant exception. 

In subsection (f)(2), the words ‘‘private sector’’ are substituted for 

‘‘private life’’ for consistency with subsection (b)(1)(B) of the revised 

section. 

In subsection (f)(3), the words ‘‘Executive Schedule’’ are substituted for ‘‘Federal Executive Salary Schedule under section 5316 

of title 5’’ for consistency and to eliminate unnecessary words. 


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SECTION 1502 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1502(a) ................. 41:422(f)(1), (3). Pub. L. 93–400, § 26(f), as added Pub. L. 100–

679, § 5(a), Nov. 17, 1988, 102 Stat. 4060; 

Pub. L. 103–355, title II, § 2453, title VIII, 

§ 8301(d), Oct. 13, 1994, 108 Stat. 3326, 3397; 

Pub. L. 104–106, title XLII, § 4205, title 

XLIII, § 4321(h)(4), Feb. 10, 1996, 110 Stat. 

656, 675; Pub. L 106–65, title VIII, § 802(a), 

(b), Oct. 5, 1999, 113 Stat. 701; Pub. L 109–

163, title VIII, § 822, Jan. 6, 2006, 119 Stat. 

3386. 

1502(b)(1) ............. 41:422(f)(2), (4). 

1502(b)(2) ............. 41:422(f)(4). 

1502(b)(3) ............. 41:422(f)(5). 

1502(c) ................. 41:422(g)(1). Pub. L. 93–400, § 26(g), (h)(1), as added Pub. L. 

100–679, § 5(a), Nov. 17, 1988, 102 Stat. 

4061. 

1502(d) ................. 41:422(g)(2) (1st, 2d sentences). 

1502(e) ................. 41:422(g)(2) (last sentence). 

1502(f) .................. 41:422(h)(1). 

1502(g) ................. 41:422(g)(3). 

In subsection (a)(1), the word ‘‘make’’ is omitted as being included in ‘‘prescribe’’. The word ‘‘consistency’’ is omitted as being 

included in ‘‘uniformity’’. 

In subsection (b)(2)(A), the word ‘‘categories’’ is omitted as being 

included in ‘‘classes’’. 

In subsection (b)(3)(A)(ii), the words ‘‘as in effect on or after the 

effective date of this paragraph’’ are omitted as obsolete. 

SECTION 1503 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1503(a) ................. 41:422(h)(2). Pub. L. 93–400, § 26(h)(2)–(4), as added Pub. L. 

100–679, § 5(a), Nov. 17, 1988, 102 Stat. 

4062. 

1503(b) ................. 41:422(h)(3). 

1503(c) ................. 41:422(h)(4). 

SECTION 1504 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1504(a) ................. 41:422(j)(1), (2). Pub. L. 93–400, § 26(j), as added Pub. L. 100–

679, § 5(a), Nov. 17, 1988, 102 Stat. 4062. 

1504(b) ................. 41:422(j)(3). 

1504(c) ................. 41:422(j)(4). 

SECTION 1505 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1505 ..................... 41:422(k). Pub. L. 93–400, § 26(k), as added Pub. L. 100–

679, § 5(a), Nov. 17, 1988, 102 Stat. 4062. 


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SECTION 1506 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1506 ..................... 41:422(l). Pub. L. 93–400, § 26(l), as added Pub. L. 100–

679, § 5(a), Nov. 17, 1988, 102 Stat. 4063. 

CHAPTER 17—AGENCY RESPONSIBILITIES AND 

PROCEDURES 

Sec. 

1701. Cooperation with the Administrator. 

1702. Chief Acquisition Officers and senior procurement executives. 

1703. Acquisition workforce. 

1704. Advocates for competition. 

1705. Personnel evaluation. 

1706. Publication of proposed regulations. 

1707. Procurement notice. 

1708. Contracting functions performed by Federal personnel. 

1709. Value engineering. 

1710. Record requirements. 

1711. Procurement data. 

SECTION 1701 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1701 ..................... 41:406. Pub. L. 93–400, § 7, Aug. 30, 1974, 88 Stat. 798. 

SECTION 1702 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1702(a), (b)(1), (2) 41:414(a). Pub. L. 93–400, § 16, as added Pub. L. 98–191, 

§ 7, Dec. 1, 1983, 97 Stat. 1330; Pub. L. 98–

369, title VII, § 2732(b)(2), July 18, 1984, 98 

Stat. 1199; Pub. L. 108–136, title XIV, 

§ 1421(a)(1), Nov. 24, 2003, 117 Stat. 1666. 

1702(b)(3) ............. 41:414(b). 

1702(c) ................. 41:414(c). 

SECTION 1703 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1703(a) ................. 41:433(e) (last sentence). Pub. L. 93–400, § 37(b)–(h)(2), as added Pub. L. 

104–106, title XLIII, § 4307(a)(1), Feb. 10, 

1996, 110 Stat. 666. 

1703(b)(1) ............. 41:433(a). Pub. L. 93–400, § 37(a), as added Pub. L. 104–

106, title XLIII, § 4307(a)(1), Feb. 10, 1996, 

110 Stat. 666; Pub. L. 109–163, title VIII, 

§ 821(b)(1), Jan. 6, 2006, 119 Stat. 3386. 

1703(b)(2) ............. 41:433(e) (1st sentence). 

1703(c) ................. 41:433(b). 

1703(d) ................. 41:433(c). 

1703(e) ................. 41:433(d). 

1703(f) .................. 41:433(f). 

1703(g) ................. 41:433(g). 

1703(h)(1) ............ 41:433(h)(1)(A). 

1703(h)(2) ............ 41:433(h)(2). 

1703(h)(3) ............ 41:433(h)(1)(B). 

1703(i)(1) .............. 41:433 note. Pub. L. 108–136, title XIV, § 1412(a), Nov. 24, 

2003, 117 Stat. 1664. 

1703(i)(2)–(9) ....... 41:433(h)(3). Pub. L. 93–400, § 37(h)(3), as added Pub. L. 

108–136, title XIV, § 1412(b), Nov. 24, 2003, 

117 Stat. 1664; Pub. L. 109–163, title VIII, 

§ 821(a), Jan. 6, 2006, 119 Stat. 3386. 


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SECTION 1703—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1703(j) .................. 41:433 note. Pub. L. 108–136, title XIV, § 1413, Nov. 24, 

2003, 117 Stat. 1665. 

In subsection (e), the word ‘‘information’’ the second time it appears is substituted for ‘‘data’’ for consistency in the subsection. 

In subsection (i)(6), the words ‘‘Office of Federal Procurement 

Policy’’ are substituted for ‘‘Office of Federal Acquisition Policy’’ to 

provide the correct name of the office. 

SECTION 1704 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1704 ..................... 41:418. Pub. L. 93–400, § 20, as added Pub. L. 98–369, 

title VII, § 2732(a), July 18, 1984, 98 Stat. 

1197; Pub. L. 103–355, title VIII, § 8303(a), 

Oct. 13, 1994, 108 Stat. 3398. 

SECTION 1705 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1705 ..................... 41:414a. Pub. L. 98–577, title V, § 502, Oct. 30, 1984, 98 

Stat. 3085. 

SECTION 1706 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1706 ..................... 41:418b. Pub. L. 93–400, § 22, as added Pub. L. 98–577, 

title III, § 302(a), Oct. 30, 1984, 98 Stat. 3076; 

Pub. L. 103–355, title V, § 5092, Oct. 13, 

1994, 108 Stat. 3362, as amended Pub. L. 

104–106, title XLIII, § 4321(a)(9), Feb. 10, 

1996, 110 Stat. 671. 

In subsection (a)(2), the words ‘‘Notwithstanding the preceding 

sentence’’ are omitted as unnecessary. 


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SECTION 1707 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1707(a) ................. 41:416(a)(1). Pub. L. 93–400, § 18, as added Pub. L. 98–369, 

title VII, § 2732(a), July 18, 1984, 98 Stat. 

1195; Pub. L. 98–577, title III, § 303(a), Oct. 

30, 1984, 98 Stat. 3077; Pub. L. 99–500, 

§ 101(c) [title X, § 922(b), (d)(2)], Oct. 18, 

1986, 100 Stat. 1783–151, 1783–152; Pub. L. 

99–591, § 101(c) [title X, § 922(b), (d)(2)], Oct. 

30, 1986, 100 Stat. 3341–151, 3341–152; Pub. 

L. 99–661, title IX, formerly title IV, § 922(b), 

(d)(2), Nov. 14, 1986, 100 Stat. 3931, 3932, renumbered title IX, Pub. L. 100–26, § 3(5), 

Apr. 21, 1987, 101 Stat. 273; Pub. L. 101–

510, title VIII, § 806(d), Nov. 5, 1990, 104 

Stat. 1592; Pub. L. 103–355, title I, 

§ 1055(b)(1), title IV, §§ 4201(b), (c), 4202(a)–

(c), title VIII, § 8302, title IX, § 9001(b), Oct. 

13, 1994, 108 Stat. 3265, 3344, 3398, 3402; 

Pub. L. 104–106, title XLI, § 4101(c), title 

XLII, § 4202(d), title XLIII, §§ 4310, 

4321(h)(3), Feb. 10, 1996, 110 Stat. 642, 654, 

670, 675; Pub. L. 105–85, title VIII, 

§ 850(e)(2), Nov. 18, 1997, 111 Stat. 1849; 

Pub. L. 105–261, title X, § 1069(d)(1), Oct. 17, 

1998, 112 Stat. 2136; Pub. L. 106–398, § 1 

[[div. A], title VIII, § 810(a), (b)], Oct. 30, 

2000, 114 Stat. 1654A–209; Pub. L 107–296, 

title VIII, § 833(c)(2), Nov. 25, 2002, 116 Stat. 

2226. 

1707(b)(1), (2) ...... 41:416(c). 

1707(b)(3) ............. no source. 

1707(c) ................. 41:416(b). 

1707(d) ................. 41:416(a)(2), (7). 

1707(e) ................. 41:416(a)(3), (5), (6). 

1707(f) .................. 41:416(a)(4). 

1707(g) ................. 41:416(d). 

In subsection (a)(3), the words ‘‘under a basic agreement, basic 

ordering agreement, or similar arrangement’’ are substituted for 

‘‘referred to in clause (A)(ii)’’ for clarity. The words ‘‘by the Secretary of Commerce’’ are omitted as obsolete. The Secretary of 

Commerce no longer has responsibility for publishing notices of 

awards or orders. See revision note for subsection (d). 

Subsection (b)(3) is added because of section 850(e)(3) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 

105–85, 111 Stat. 1849, 15:637 note), which in part provided that 

the amendments made by section 850(e)(2), which amended 

41:416(c)(1), be implemented in a manner consistent with applicable international agreements. 

Subsection (d) is substituted for 41:416(a)(2) and (7) to eliminate 

unnecessary words. Federal Business Opportunities is the designated single point of universal electronic public access for publication of all procurement information and notices previously published by the Secretary of Commerce in the Commerce Business 

Daily. See 66 Fed. Reg. 27407, May 16, 2001, 68 Fed. Reg. 56678, 

October 1, 2003, 48 CFR ch. 1, subch. B, part 5, and the special 

notice posted in CBDNet on December 28, 2001, and printed on 

January 2, 2002. The special notice can be found by going to http:// 

cbdnet.gpo.gov and clicking on ‘‘Federal Business Opportunities to 

replace the Commerce Business Daily’’. 


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In subsection (e)(1)(B)(i), the words ‘‘required for a bid or proposal for a contract described in’’ are substituted for ‘‘required by’’

for clarity. 

In subsection (e)(1)(B)(ii), the words ‘‘required for an order described in’’ are substituted for ‘‘required by’’ for clarity. 

SECTION 1708 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1708(a) ................. 41:419(b). Pub. L. 93–400, § 23, as added Pub. L. 103–355, 

title VI, § 6002(a), Oct. 13, 1994, 108 Stat. 

3363. 

1708(b) ................. 41:419(a). 

1708(c) ................. 41:419(c). 

In subsection (a), before clause (1), the words ‘‘Personnel referred 

to in subsection (b) are’’ are substituted for ‘‘For purposes of subsection (a) of this section, the personnel described in this subsection 

are as follows’’ to eliminate unnecessary words. 

SECTION 1709 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1709 ..................... 41:432. Pub. L. 93–400, § 36, as added Pub. L. 104–106, 

title XLIII, § 4306(a), Feb. 10, 1996, 110 Stat. 

665. 

SECTION 1710 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1710 ..................... 41:417. Pub. L. 93–400, § 19, as added Pub. L. 98–369, 

title VII, § 2732(a), July 18, 1984, 98 Stat. 

1197; Pub. L. 103–355, title IV, § 4403, Oct. 

13, 1994, 108 Stat. 3349. 

SECTION 1711 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1711(a) ................. 41:417a(b). Pub. L. 100–533, title V, § 502, Oct. 25, 1988, 

102 Stat. 2697; Pub. L. 105–135, title VI, 

§ 604(f)(2), Dec. 2, 1997, 111 Stat. 2634. 

1711(b) ................. 41:417a(a). 

In subsection (b), the words ‘‘socially and economically disadvantaged individuals’’ are substituted for ‘‘socially and economically 

disadvantaged businesses’’ for consistency with the term set out in 

subsection (a). 

CHAPTER 19—SIMPLIFIED ACQUISITION PROCEDURES 

Sec. 

1901. Simplified acquisition procedures. 

1902. Procedures applicable to purchases below micro-purchase threshold. 

1903. Special emergency procurement authority. 

1904. Certain transactions for defense against attack. 

1905. List of laws inapplicable to contracts or subcontracts not greater than simplified acquisition threshold. 

1906. List of laws inapplicable to procurements of commercial items. 


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1907. List of laws inapplicable to procurements of commercially available off-theshelf items. 

1908. Inflation adjustment of acquisition-related dollar thresholds. 

SECTION 1901 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1901 ..................... 41:427. Pub. L. 93–400, § 31, as added Pub. L. 103–355, 

title IV, § 4201(a), Oct. 13, 1994, 108 Stat. 

3342; Pub. L. 104–106, title XLII, § 4202(c), 

title XLIII, § 4302(b), Feb. 10, 1996, 110 Stat. 

653, 658, as amended Pub. L. 104–201, title 

X, § 1074(b)(6) (less effective date), Sept. 23, 

1996, 110 Stat. 2660; Pub. L. 105–85, title 

VIII, § 850(d), Nov. 18, 1997, 111 Stat. 1848. 

In subsection (f)(2), the reference to section 253 of this title is 

limited to section 3303(d) of the revised title for clarity. 

SECTION 1902 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1902 ..................... 41:428. Pub. L. 93–400, § 32, as added Pub. L. 103–355, 

title IV, § 4301(a), Oct. 13, 1994, 108 Stat. 

3346; Pub. L. 104–106, title XLIII, 

§§ 4304(b)(4), (c)(3), 4311, Feb. 10, 1996, 110 

Stat. 664, 671. 

SECTION 1903 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1903(a) ................. 41:428a(a), (e). Pub. L. 93–400, § 32A, as added Pub. L. 108–

136, title XIV, § 1443(a)(1), Nov. 24, 2003, 117 

Stat. 1675; Pub. L. 108–375, title VIII, § 822, 

Oct. 28, 2004, 118 Stat. 2016. 

1903(b) ................. 41:428a(b), (c). 

1903(c) ................. 41:428a(d). 

SECTION 1904 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1904 ..................... 41:428a note. Pub. L. 108–136, title XIV, § 1441, Nov. 24, 

2003, 117 Stat. 1673. 

In subsection (a)(3)(A), the words ‘‘paragraph (2)’’ are substituted 

for ‘‘this paragraph’’ to correct the cross-reference. 

In subsection (a)(4)(A), the words ‘‘to use the authority for such 

project’’ are omitted as unnecessary. 

In subsection (c), the words ‘‘Committee on Homeland Security 

and Governmental Affairs’’ are substituted for ‘‘Committee on Governmental Affairs’’ on authority of Senate Resolution No. 445 

(108th Congress, October 9, 2004). 

SECTION 1905 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1905(a) ................. no source. 

1905(b)–(d) ........... 41:429. Pub. L. 93–400, § 33, as added Pub. L. 103–355, 

title IV, § 4101, Oct. 13, 1994, 108 Stat. 3339. 


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SECTION 1906 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1906(a) ................. no source. 

1906(b)–(e) ........... 41:430. Pub. L. 93–400, § 34, as added Pub. L. 103–355, 

title VIII, § 8003(a), Oct. 13, 1994, 108 Stat. 

3388. 

SECTION 1907 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1907 ..................... 41:431(a), (b). Pub. L. 93–400, § 35(a), (b), as added Pub. L. 

104–106, title XLII, § 4203(a), Feb. 10, 1996, 

110 Stat. 654; Pub. L. 105–85, title X, 

§ 1073(g)(2)(C), Nov. 18, 1997, 111 Stat. 1906. 

SECTION 1908 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

1908(a) ................. no source. 

1908(b)(1) ............. 41:431a(c). Pub. L. 93–400, § 35A, as added Pub. L. 108–

375, title VIII, § 807(a)(1), Oct. 28, 2004, 118 

Stat. 2010. 

1908(b)(2) ............. 41:431a(d). 

1908(b)(3) ............. 41:431a note. Pub. L. 108–375, title VIII, § 807(c)(1), Oct. 28, 

2004, 118 Stat. 2011. 

1908(c)(1), (2) ...... 41:431a(a). 

1908(c)(3) ............. 41:431a note. Pub. L. 108–375, title VIII, § 807(c)(2), Oct. 28, 

2004, 118 Stat. 2011. 

1908(d) ................. 41:431a(b). 

1908(e) ................. 41:431a(e). 

1908(f) .................. 41:431a(f). 

In subsection (c)(3), the words ‘‘After the date of the enactment 

of this Act’’ are omitted as obsolete. 

In subsection (e)(1), the words ‘‘Secretary of Labor’’ are substituted for ‘‘Department of Labor’’ because of 29:551. 

CHAPTER 21—RESTRICTIONS ON OBTAINING AND 

DISCLOSING CERTAIN INFORMATION 

Sec. 

2101. Definitions. 

2102. Prohibitions on disclosing and obtaining procurement information. 

2103. Actions required of procurement officers when contacted regarding non-Federal employment. 

2104. Prohibition on former official’s acceptance of compensation from contractor. 

2105. Penalties and administrative actions. 

2106. Reporting information believed to constitute evidence of offense. 

2107. Savings provisions. 


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SECTION 2101 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2101(1) ................. 41:423(f)(5). Pub. L. 93–400, § 27(f), as added Pub. L. 100–

679, § 6(a), Nov. 17, 1988, 102 Stat. 4063; 

Pub. L. 101–189, title VIII, § 814(a)–(d)(1), 

Nov. 29, 1989, 103 Stat. 1495; Pub. L. 101–

510, title XIV, § 1484(l)(6), Nov. 5, 1990, 104 

Stat. 1720; Pub. L. 102–25, title VII, § 705(i), 

Apr. 6, 1991, 105 Stat. 121; Pub. L. 103–355, 

title VIII, § 8301(e), Oct. 13, 1994, 108 Stat. 

3397; Pub. L. 104–106, title XLIII, § 4304(a), 

Feb. 10, 1996, 110 Stat. 662. 

2101(2) ................. 41:423(f)(1). 

2101(3) ................. 41:423(f)(3). 

2101(4) ................. 41:423(f)(4). 

2101(5) ................. 41:423(f)(7). 

2101(6) ................. 41:423(f)(6). 

2101(7) ................. 41:423(f)(2). 

SECTION 2102 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2102(a) ................. 41:423(a). Pub. L. 93–400, § 27(a), (b), as added Pub. L. 

100–679, § 6(a), Nov. 17, 1988, 102 Stat. 

4063; Pub. L. 101–189, title VIII, § 814(a)–

(d)(1), Nov. 29, 1989, 103 Stat. 1495; Pub. L. 

101–510, title XIV, § 1484(l)(6), Nov. 5, 1990, 

104 Stat. 1720; Pub. L. 102–25, title VII, 

§ 705(i), Apr. 6, 1991, 105 Stat. 121; Pub. L. 

103–355, title VIII, § 8301(e), Oct. 13, 1994, 

108 Stat. 3397; Pub. L. 104–106, title XLIII, 

§ 4304(a), Feb. 10, 1996, 110 Stat. 659; Pub. 

L. 107–347, title II, § 209(d)(4), Dec. 17, 2002, 

116 Stat. 2930. 

2102(b) ................. 41:423(b). 

SECTION 2103 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2103(a) ................. 41:423(c)(1). Pub. L. 93–400, § 27(c), as added Pub. L. 100–

679, § 6(a), Nov. 17, 1988, 102 Stat. 4063; 

Pub. L. 101–189, title VIII, § 814(a)–(d)(1), 

Nov. 29, 1989, 103 Stat. 1495; Pub. L. 101–

510, title XIV, § 1484(l)(6), Nov. 5, 1990, 104 

Stat. 1720; Pub. L. 102–25, title VII, § 705(i), 

Apr. 6, 1991, 105 Stat. 121; Pub. L. 103–355, 

title VIII, § 8301(e), Oct. 13, 1994, 108 Stat. 

3397; Pub. L. 104–106, title XLIII, § 4304(a), 

Feb. 10, 1996, 110 Stat. 660. 

2103(b) ................. 41:423(c)(2). 

2103(c) ................. 41:423(c)(3), (4). 


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SECTION 2104 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2104(a) ................. 41:423(d)(1). Pub. L. 93–400, § 27(d), as added Pub. L. 100–

679, § 6(a), Nov. 17, 1988, 102 Stat. 4063; 

Pub. L. 101–189, title VIII, § 814(a)–(d)(1), 

Nov. 29, 1989, 103 Stat. 1495; Pub. L. 101–

510, title XIV, § 1484(l)(6), Nov. 5, 1990, 104 

Stat. 1720; Pub. L. 102–25, title VII, § 705(i), 

Apr. 6, 1991, 105 Stat. 121; Pub. L. 103–355, 

title VIII, § 8301(e), Oct. 13, 1994, 108 Stat. 

3397; Pub. L. 104–106, title XLIII, § 4304(a), 

Feb. 10, 1996, 110 Stat. 660. 

2104(b) ................. 41:423(d)(2). 

2104(c) ................. 41:423(d)(5). 

2104(d) ................. 41:423(d)(3), (4). 

SECTION 2105 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2105(a) ................. 41:423(e)(1). Pub. L. 93–400, § 27(e), as added Pub. L. 100–

679, § 6(a), Nov. 17, 1988, 102 Stat. 4063; 

Pub. L. 101–189, title VIII, § 814(a)–(d)(1), 

Nov. 29, 1989, 103 Stat. 1495; Pub. L. 101–

510, title XIV, § 1484(l)(6), Nov. 5, 1990, 104 

Stat. 1720; Pub. L. 102–25, title VII, § 705(i), 

Apr. 6, 1991, 105 Stat. 121; Pub. L. 103–355, 

title VIII, § 8301(e), Oct. 13, 1994, 108 Stat. 

3397; Pub. L. 104–106, title XLIII, § 4304(a), 

Feb. 10, 1996, 110 Stat. 661. 

2105(b) ................. 41:423(e)(2). 

2105(c) ................. 41:423(e)(3). 

In subsection (a), the word ‘‘violates’’ is substituted for ‘‘engages 

in conduct constituting a violation’’ to eliminate unnecessary words. 

In subsection (b), the words ‘‘liable to the Federal Government 

for’’ are substituted for ‘‘subject to’’ for consistency in the revised 

title and with other titles of the United States Code. 

In subsecton (c)(1), the words ‘‘has violated’’ are substituted for 

‘‘has engaged in conduct constituting a violation’’ to eliminate unnecessary words. 

SECTION 2106 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2106 ..................... 41:423(g). Pub. L. 93–400, § 27(g), as added Pub. L. 100–

679, § 6(a), Nov. 17, 1988, 102 Stat. 4063; 

Pub. L. 101–189, title VIII, § 814(a)–(d)(1), 

Nov. 29, 1989, 103 Stat. 1495; Pub. L. 101–

510, title XIV, § 1484(l)(6), Nov. 5, 1990, 104 

Stat. 1720; Pub. L. 102–25, title VII, § 705(i), 

Apr. 6, 1991, 105 Stat. 121; Pub. L. 103–355, 

title VIII, § 8301(e), Oct. 13, 1994, 108 Stat. 

3397; Pub. L. 104–106, title XLIII, § 4304(a), 

Feb. 10, 1996, 110 Stat. 663. 


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SECTION 2107 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2107 ..................... 41:423(h). Pub. L. 93–400, § 27(h), as added Pub. L. 100–

679, § 6(a), Nov. 17, 1988, 102 Stat. 4063; 

Pub. L. 101–189, title VIII, § 814(a)–(d)(1), 

Nov. 29, 1989, 103 Stat. 1495; Pub. L. 101–

510, title XIV, § 1484(l)(6), Nov. 5, 1990, 104 

Stat. 1720; Pub. L. 102–25, title VII, § 705(i), 

Apr. 6, 1991, 105 Stat. 121; Pub. L. 103–355, 

title VIII, § 8301(e), Oct. 13, 1994, 108 Stat. 

3397; Pub. L. 104–106, title XLIII, § 4304(a), 

Feb. 10, 1996, 110 Stat. 663. 

CHAPTER 23—MISCELLANEOUS 

Sec. 

2301. Use of electronic commerce in Federal procurement. 

2302. Rights in technical data. 

2303. Conflict of interest standards for consultants. 

2304. Authority of Director of Office of Management and Budget not affected. 

2305. Openness of meetings. 

2306. Comptroller General’s access to information. 

2307. Modular contracting for information technology. 

2308. Protection of constitutional rights of contractors. 

2309. Performance-based contracts or task orders for services to be treated as contracts for the procurement of commercial items. 

SECTION 2301 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2301(a) ................. 41:426(f). Pub. L. 93–400, § 30, as added Pub. L. 103–355, 

title IX, § 9001(a), Oct. 13, 1994, 108 Stat. 

3399; Pub. L. 105–85, title VIII, § 850(a), Nov. 

18, 1997, 111 Stat. 1847; Pub. L. 106–398, § 1 

[[div. A], title VIII, § 810(d)], Oct. 30, 2000, 

114 Stat. 1654A–210. 

2301(b) ................. 41:426(a). 

2301(c) ................. 41:426(b). 

2301(d) ................. 41:426(c). 

2301(e) ................. 41:426(d). 

In this section, the text of 41:426(e) is omitted as obsolete because the last report was to be submitted not later than March 1, 

2004. 

In subsection (c), the word ‘‘executive’’ is added for clarity and for 

consistency in the revised section. 

In subsection (e)(2), the words ‘‘with respect to the agency systems, technologies, procedures, and processes established pursuant 

to this section’’ are omitted as unnecessary. 

SECTION 2302 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2302(a) ................. 41:418a(a) (1st sentence). Pub. L. 93–400, § 21, as added Pub. L. 98–577, 

title III, § 301(a), Oct. 30, 1984, 98 Stat. 3074; 

Pub. L. 99–145, title IX, § 961(d)(2), Nov. 8, 

1985, 99 Stat. 704. 

2302(b) ................. 41:418a(a) (2d, last sentences). 

2302(c) ................. 41:418a(b). 

2302(d) ................. 41:418a(c). 


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SECTION 2302—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2302(e) ................. 41:418a(d). 

In subsection (a), the words ‘‘Federal Acquisition Regulation’’ are 

substituted for ‘‘single system of Government-wide procurement 

regulations as defined in section 403(4) of this title’’ because section 

3(a)(1) of the Office of Federal Procurement Policy Act Amendments of 1988 (Public Law 100–679, 102 Stat. 4055) substituted 

‘‘Federal Acquisition Regulation’’ for ‘‘single system of Governmentwide procurement regulations’’ in section 6 of the Office of Federal 

Procurement Policy Act (Public Law 93–400, 88 Stat. 797, 41:406) 

and because section 3(c) of the Office of Federal Procurement Policy 

Act Amendments of 1988 (102 Stat. 4056) struck section 4(4) of the 

Office of Federal Procurement Policy Act (88 Stat. 797, 41:403(4)), 

as amended by section 4 of the Office of Federal Procurement Policy Act Amendments of 1983 (Public Law 98–191, 97 Stat. 1326), 

which had defined ‘‘single system of Government-wide procurement 

regulations’’. 

SECTION 2303 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2303(a) ................. 41:405b(a). Pub. L. 100–463, title VIII, § 8141, Oct. 1, 1988, 

102 Stat. 2270–47. 

2303(b) ................. 41:405b(b). 

2303(c) ................. 41:405b(d). 

2303(d) ................. 41:405b(e). 

In this section, the text of 41:405b(c) is omitted as obsolete. 

In subsection (a), before paragraph (1), the words ‘‘The Administrator shall prescribe under this part Government-wide regulations’’ are substituted for ‘‘Not later than 90 days after October 1, 

1988, the Administrator of the Office of Federal Procurement Policy 

shall issue a policy, and not later than 180 days thereafter Government-wide regulations shall be issued under the Office of Federal 

Procurement Policy Act (41 U.S.C. 401 et seq.)’’ to eliminate obsolete words. 

In subsection (b), before paragraph (1), the words ‘‘the following 

types of consulting services’’ are omitted as unnecessary. 

In subsection (c)(2), the words ‘‘each January 1’’ are substituted 

for ‘‘no later than January 1, 1990, and annually thereafter’’ to 

eliminate obsolete and unnecessary words. The words ‘‘exempted 

under paragraph (1)’’ are substituted for ‘‘exempted from the regulations required by subsection (a) of this section in accordance with 

the provisions of this subsection’’ to eliminate unnecessary words. 

SECTION 2304 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2304 ..................... 41:405(h)(2). Pub. L. 93–400, § 6(h)(2), Aug. 30, 1974, 88 

Stat. 797; Pub. L. 96–83, § 4, Oct. 10, 1979, 

93 Stat. 649; Pub. L. 98–191, § 5, Dec. 1, 

1983, 97 Stat. 1328. 


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The words ‘‘in effect on December 1, 1983’’ are substituted for ‘‘current’’ for clarity. 

SECTION 2305 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2305 ..................... 41:412(b). Pub. L. 93–400, § 14(b), Aug. 30, 1974, 88 Stat. 

800; Pub. L. 96–83, § 9, Oct. 10, 1979, 93 

Stat. 652. 

SECTION 2306 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2306 ..................... 41:412(a). Pub. L. 93–400, § 14(a), Aug. 30, 1974, 88 Stat. 

800. 

SECTION 2307 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2307 ..................... 41:434. Pub. L. 93–400, § 38, formerly § 35, as added 

Pub. L. 104–106, title LII, § 5202(a), Feb. 10, 

1996, 110 Stat. 690; renumbered § 38, Pub. L. 

104–201, title X, § 1074(d)(1), Sept. 23, 1996, 

110 Stat. 2660. 

SECTION 2308 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2308 ..................... 41:436. Pub. L. 93–400, § 40, formerly § 39, as added 

Pub. L. 105–277, title III, § 308(a), Oct. 21, 

1998, 112 Stat. 2681–879; renumbered § 40, 

Pub. L. 108–136, title XIV, § 1431(d)(2), Nov. 

24, 2003, 117 Stat. 1672. 

In subsection (a), the reference is to the Chemical Weapons Convention Implementation Act of 1998 rather than the Chemical 

Weapons Convention Implementation Act of 1997 to correct an 

error in the source provision. 

SECTION 2309 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

2309 ..................... 41:437. Pub. L. 93–400, § 41, as added Pub. L. 108–136, 

title XIV, § 1431(a), Nov. 24, 2003, 117 Stat. 

1671. 

In subsection (c), the words ‘‘Committees on Homeland Security 

and Governmental Affairs’’ are substituted for ‘‘Committees on 

Governmental Affairs’’ on authority of Senate Resolution No. 445 

(108th Congress, October 9, 2004). 

PART C—PROCUREMENT

CHAPTER 31—GENERAL 

Sec. 

3101. Applicability. 

3102. Delegation and assignment of powers, functions, and responsibilities. 


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3103. Acquisition programs. 

3104. Small business concerns. 

3105. New contracts and grants and merit-based selection procedures. 

3106. Erection, repair, or furnishing of public buildings and improvements not authorized, and certain contracts not permitted, by this part. 

SECTION 3101 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3101(a) ................. 41:252(a) (words before 

1st semicolon). 

June 30, 1949, ch. 288, title III, § 302(a), 63 

Stat. 393; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 85–800, § 1, Aug. 28, 1958, 

72 Stat. 966; Pub. L. 89–343, § 1, Nov. 8, 

1965, 79 Stat. 1303. 

3101(b)(1) ............. 41:252a. June 30, 1949, ch. 288, title III, § 302A, as 

added Pub. L. 103–355, title IV, §§ 4003, 

4103(a), Oct. 13, 1994, 108 Stat. 3338, 3341. 

3101(b)(2) ............. 41:252b. June 30, 1949, ch. 288, title III, § 302B, as 

added Pub. L. 103–355, title IV, § 4203(b), 

Oct. 13, 1994, 108 Stat. 3346. 

3101(c)(1) ............. 41:252(a) (words after 

1st semicolon and before ‘‘but when’’). 

3101(c)(2) ............. 41:252(a) (words after 

‘‘other law’’). 

41:260. June 30, 1949, ch. 288, title III, § 310, 63 Stat. 

397; July 12, 1952, ch. 703, § 1(m), (n), 66 

Stat. 594; Pub. L. 85–800, § 6, Aug. 28, 1958, 

72 Stat. 967; Pub. L. 89–343, § 5, Nov. 8, 

1965, 79 Stat. 1303; Pub. L. 98–369, div. B, 

title VII, § 2714(a)(6), July 18, 1984, 98 Stat. 

1185. 

In subsection (c)(1)(B), the words ‘‘except as provided in paragraph (2)’’ are added for clarity. The words ‘‘section 113(e) of title 

40 or any other’’ are omitted as unnecessary. 

SECTION 3102 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3102 ..................... 41:261. June 30, 1949, ch. 288, title III, § 311, as added 

Pub. L. 103–355, title I, § 1552, Oct. 13, 1994, 

108 Stat. 3299. 

SECTION 3103 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3103 ..................... 41:263. June 30, 1949, ch. 288, title III, § 313, as added 

Pub. L. 103–355, title V, § 5051(a), Oct. 13, 

1994, 108 Stat. 3351; Pub. L. 105–85, div. A, 

title VIII, § 851(a), Nov. 18, 1997, 111 Stat. 

1851. 

SECTION 3104 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3104 ..................... 41:252(b). June 30, 1949, ch. 288, title III, § 302(b), 63 

Stat. 393; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 98–369, div. B, title VII, 

§ 2714(a)(1)(A), July 18, 1984, 98 Stat. 1184. 

The word ‘‘declared’’ is omitted as unnecessary. 


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SECTION 3105 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3105(a) ................. 41:253(i)(1). June 30, 1949, ch. 288, title III, § 303(i), as 

added Pub. L. 103–355, title VII, 

§ 7203(b)(1)(B), Oct. 13, 1994, 108 Stat. 3380; 

Pub. L. 104–106, title XLI, § 4101(b)(1), Feb. 

10, 1996, 110 Stat. 642. 

41:266(a). June 30, 1949, ch. 288, title III, § 316, as added 

Pub. L. 103–355, title VII, § 7203(b)(2), Oct. 

13, 1994, 108 Stat. 3381; Pub. L. 104–106, 

title XLIII, § 4321(e)(9), Feb. 10, 1996, 110 

Stat. 675. 

3105(b) ................. 41:253(i)(3). 

41:266(c). 

3105(c) ................. 41:253(i)(2). 

41:266(b). 

3105(d) ................. 41:253(i)(4). 

41:266(d). 

SECTION 3106 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3106 ..................... 41:252(c)(1). June 30, 1949, ch. 288, title III, § 302(c)(1), 63 

Stat. 393; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 85–800, §§ 2, 3, Aug. 28, 

1958, 72 Stat. 966; Pub. L. 89–343, § 2, Nov. 

8, 1965, 79 Stat. 1303; Pub. L. 89–348, § 1(2), 

Nov. 8, 1965, 79 Stat. 1310; Pub. L. 90–268, 

§ 4, Mar. 16, 1968, 82 Stat. 50; Pub. L. 93–

356, § 3, July 25, 1974, 88 Stat. 390; Pub. L. 

98–191, § 9(a)(1), Dec. 1, 1983, 97 Stat. 1331; 

Pub. L. 98–369, div. B, title VII, 

§ 2714(a)(1)(B), July 18, 1984, 98 Stat. 1184. 

In paragraph (1), the words ‘‘but such authorization shall be required in the same manner as heretofore’’ are omitted as unnecessary. 

CHAPTER 33—PLANNING AND SOLICITATION 

Sec. 

3301. Full and open competition. 

3302. Exclusion of particular source or restriction of solicitation to small business 

concerns. 

3303. Use of noncompetitive procedures. 

3304. Simplified procedures for small purchases. 

3305. Planning and solicitation requirements. 

3306. Preference for commercial items. 

3307. Planning for future competition in contracts for major systems. 

3308. Design-build selection procedures. 

3309. Quantities to order. 

3310. Qualification requirement. 

SECTION 3301 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3301(a) ................. 41:253(a)(1). June 30, 1949, ch. 288, title III, § 303(a), 63 

Stat. 395; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 90–268, § 2, Mar. 16, 1968, 

82 Stat. 49; Pub. L. 98–369, title VII, 

§ 2711(a)(1), July 18, 1984, 98 Stat. 1175; 

Pub. L. 103–355, title I, § 1051(1), Oct. 13, 

1994, 108 Stat. 3260. 


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SECTION 3301—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3301(b)(1) ............. 41:253(a)(2). 

3301(b)(2) ............. 41:252(c)(2). June 30, 1949, ch. 288, title III, § 302(c)(2), as 

added Pub. L. 98–369, title VII, 

§ 2714(a)(1)(B), July 18, 1984, 98 Stat. 1184. 

3301(c) ................. 41:253(h). June 30, 1949, ch. 288, title III, § 303(h), as 

added Pub. L. 104–106, title XLI, § 4101(b)(2), 

Feb. 10, 1996, 110 Stat. 642. 

SECTION 3302 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3302 ..................... 41:253(b). June 30, 1949, ch. 288, title III, § 303(b), 63 

Stat. 395; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 90–268, § 2, Mar. 16, 1968, 

82 Stat. 49; Pub. L. 98–369, title VII, 

§ 2711(a)(1), July 18, 1984, 98 Stat. 1175; 

Pub. L. 98–577, title V, § 504(a)(1), Oct. 30, 

1984, 98 Stat. 3086; Pub. L. 103–355, title I, 

§ 1052, Oct. 13, 1994, 108 Stat. 3260. 

SECTION 3303 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3303(a) ................. 41:253(c), (d)(2). June 30, 1949, ch. 288, title III, § 303(c)–(f), 63 

Stat. 395; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 90–268, § 2, Mar. 16, 1968, 

82 Stat. 49; Pub. L. 98–369, title VII, 

§ 2711(a)(1), July 18, 1984, 98 Stat. 1176; 

Pub. L. 98–577, title V, § 504(a)(2), Oct. 30, 

1984, 98 Stat. 3086; Pub. L. 99–145, title IX, 

§ 961(a)(2), title XIII, § 1304(c)(2), Nov. 8, 

1985, 99 Stat. 703, 742; Pub. L. 103–355, title 

I, §§ 1053, 1055(a), title VII, § 7203(b)(1)(A), 

Oct. 13, 1994, 108 Stat. 3261, 3265, 3380; 

Pub. L. 104–106, title XLI, § 4102(b), title 

XLIII, § 4321(e)(2), Feb. 10, 1996, 110 Stat. 

643, 674; Pub. L. 104–320, §§ 7(a)(2), 11(c)(2), 

Oct. 19, 1996, 110 Stat. 3871, 3873. 

3303(b) ................. 41:253(d)(1). 

3303(c) ................. 41:253(e). 

3303(d)(1) ............. 41:253(f)(1). 

3303(d)(2) ............. 41:253(f)(3). 

3303(d)(3) ............. 41:253(f)(4). 

3303(d)(4), (5) ...... 41:253(f)(2). 

3303(d)(6) ............. 41:253(f)(5). 

In subsection (a)(7), the words ‘‘(who may not delegate the authority under this paragraph)’’ are substituted for 41:253(d)(2) to 

move the restriction closer to where it applies. 

In subsection (d)(1)(B)(i), the words ‘‘advocate for competition’’

are substituted for ‘‘competition advocate’’ for consistency with section 1704 of the revised title. 

In subsection (d)(1)(B)(ii), the reference to section 5376 of title 5 

is substituted for the reference to grade GS–16 or above under the 

General Schedule because of section 529 [title I, § 101(c)(1)] of the 

Treasury, Postal Service and General Government Appropriations 

Act, 1991 (Public Law 101–509, 104 Stat. 1442, 5 U.S.C. 5376 

note). 


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In subsection (d)(6)(B), the words ‘‘and not in lieu of’’ are omitted 

as unnecessary. 

SECTION 3304 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3304 ..................... 41:253(g). June 30, 1949, ch. 288, title III, § 303(g), 63 

Stat. 395; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 90–268, § 2, Mar. 16, 1968, 

82 Stat. 49; Pub. L. 98–369, title VII, 

§ 2711(a)(1), July 18, 1984, 98 Stat. 1178; 

Pub. L. 99–145, title XIII, § 1304(c)(3), Nov. 8, 

1985, 99 Stat. 742; Pub. L. 101–510, title 

VIII, § 806(c), Nov. 5, 1990, 104 Stat. 1592; 

Pub. L. 103–355, title I, § 1051(2), title IV, 

§ 4402(a), Oct. 13, 1994, 108 Stat. 3260, 3348; 

Pub. L. 104–106, title XLII, § 4202(b)(1), Feb. 

10, 1996, 110 Stat. 653; Pub. L. 105–85, title 

VIII, § 850(f)(4)(B), Nov. 18, 1997, 111 Stat. 

1850. 

SECTION 3305 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3305(a)–(e) ........... 41:253a. June 30, 1949, ch. 288, title III, § 303A, as 

added Pub. L. 98–369, title VII, § 2711(a)(2), 

July 18, 1984, 98 Stat. 1178; Pub. L. 103–

355, title I, §§ 1061(a), (b), 1062, title IV, 

§ 4402(b), Oct. 13, 1994, 108 Stat. 3266, 3267, 

3348; Pub. L. 104–106, title XLII, 

§ 4202(b)(2), Feb. 10, 1996, 110 Stat. 653. 

3305(f) .................. 41:253a note. Pub. L. 108–136, title XIV, § 1428, Nov. 24, 

2003, 117 Stat. 1670. 

In subsection (f)(2), the words ‘‘Not later than 180 days after the 

date of the enactment of this Act, the Federal Acquisition Regulatory Council shall amend’’ are omitted as obsolete. 

SECTION 3306 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3306(a) ................. 41:264. June 30, 1949, ch. 288, title III, §§ 314, 314B, as 

added Pub. L. 103–355, title VIII, §§ 8201, 

8203, Oct. 13, 1994, 108 Stat. 3394. 

3306(b) ................. 41:264b(a). 

3306(c) ................. 41:264b(b). 

3306(d) ................. 41:264b(c). 

3306(e) ................. 41:264 note. Pub. L. 103–355, title VIII, § 8002, Oct. 13, 

1994, 108 Stat. 3386; Pub. L. 108–136, title 

XIV, 1432, Nov. 24, 2003, 117 Stat. 1672. 

Subsection (a)(1) is substituted for 41 U.S.C. 264(a) for clarity. 

In subsection (e), the text of section 8002(f) of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355, 41 U.S.C. 

264 note) is omitted as obsolete. 

In subsection (e)(2)(B)(i) and (C)(i), the words ‘‘as the case may 

be’’ are omitted as unnecessary. 


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SECTION 3307 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3307 ..................... 41:253b(j). June 30, 1949, ch. 288, title III, § 303B(j), formerly § 303B(f), as added Pub. L. 98–577, 

title II, § 201(a), Oct. 30, 1984, 98 Stat. 3068; 

redesignated as § 303B(g), Pub. L. 103–355, 

title I, § 1064(1), Oct. 13, 1994, 108 Stat. 

3268; redesignated as § 303B(j), Pub. L. 104–

106, title XLI, § 4104(b)(2), Feb. 10, 1996, 110 

Stat. 645. 

SECTION 3308 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3308 ..................... 41:253m. June 30, 1949, ch. 288, title III, § 303M, as 

added Pub. L. 104–106, div. D, title XLI, 

§ 4105(b)(1), Feb. 10, 1996, 110 Stat. 647. 

In subsections (a) and (c)(1), the words ‘‘sections 1101 to 1104 of 

title 40’’ are substituted for ‘‘the Brooks Architect-Engineers Act 

(title IX of this Act)’’ and ‘‘the Brooks Architect-Engineers Act (40 

U.S.C. 541 et seq.)’’, respectively, because of section 5(c) of Public 

Law 107–217 (40 U.S.C. note prec. 101) and for consistency with 

title 40. 

In subsection (c)(5), the reference to section 253b of this title is 

limited to chapter 37 of the revised title for clarity. 

SECTION 3309 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3309 ..................... 41:253f. June 30, 1949, ch. 288, title III, § 303F, formerly § 303G, as added Pub. L. 98–577, title 

II, § 205(a), Oct. 30, 1984, 98 Stat. 3073; renumbered § 303F, Pub. L. 99–145, title XIII, 

§ 1304(c)(4)(A), Nov. 8, 1985, 99 Stat. 742. 

In subsection (b), the words ‘‘or quantities’’ are omitted because 

of 1:1. 

SECTION 3310 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3310 ..................... 41:253c. June 30, 1949, ch. 288, title III, § 303C, formerly § 303D, as added Pub. L. 98–577, title 

II, § 202(a), Oct. 30, 1984, 98 Stat. 3069; renumbered § 303C, Pub. L. 99–145, title XIII, 

§ 1304(c)(4)(A), Nov. 8, 1985, 99 Stat. 742. 

In subsection (d)(1)(A), the words ‘‘in the Commerce Business 

Daily’’ are omitted as obsolete. See revision note for section 1707(d) 

of the revised title. 

CHAPTER 35—TRUTHFUL COST AND PRICING DATA 

Sec. 

3501. Definitions. 

3502. Required cost or pricing data and certification. 

3503. Exceptions. 

3504. Cost or pricing data on below-threshold contracts. 


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3505. Submission of other information. 

3506. Price reductions for defective cost or pricing data. 

3507. Interest and penalties for certain overpayments. 

3508. Right to examine contractor records. 

SECTION 3501 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3501 ..................... 41:254b(h). June 30, 1949, ch. 288, title III, § 304A(h), formerly § 304A(i), as added Pub. L. 103–355, 

title I, § 1251(a)(2), Oct. 13, 1994, 108 Stat. 

3284; redesignated as § 304A(h), Pub. L. 104–

106, title XLII, § 4201(b)(2)(B), Feb. 10, 1996, 

110 Stat. 652. 

SECTION 3502 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3502 ..................... 41:254b(a). June 30, 1949, ch. 288, title III, § 304A(a), as 

added Pub. L. 103–355, title I, § 1251(a)(2), 

Oct. 13, 1994, 108 Stat. 3278; Pub. L. 105–

261, div. A, title VIII, § 805(b), Oct. 17, 1998, 

112 Stat. 2083. 

SECTION 3503 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3503 ..................... 41:254b(b). June 30, 1949, ch. 288, title III, § 304A(b), as 

added Pub. L. 103–355, title I, § 1251(a)(2), 

Oct. 13, 1994, 108 Stat. 3279; Pub. L. 104– 106, title XLII, § 4201(b)(1), Feb. 10, 1996, 

110 Stat. 651. 

In subsection (b)(2), the words ‘‘as the case may be’’ are omitted 

as unnecessary. 

SECTION 3504 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3504 ..................... 41:254b(c). June 30, 1949, ch. 288, title III, § 304A(c), as 

added Pub. L. 103–355, title I, § 1251(a)(2), 

Oct. 13, 1994, 108 Stat. 3280; Pub. L. 104–

106, title XLII, §§ 4201(b)(1), 4321(e)(3), Feb. 

10, 1996, 110 Stat. 651, 675. 

SECTION 3505 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3505 ..................... 41:254b(d). June 30, 1949, ch. 288, title III, § 304A(d), as 

added Pub. L. 103–355, title I, § 1251(a)(2), 

Oct. 13, 1994, 108 Stat. 3281; Pub. L. 104– 106, title XLII, §§ 4201(b)(1), 4321(e)(4), Feb. 

10, 1996, 110 Stat. 652, 675; Pub. L. 105–261, 

div. A, title VIII, § 808(b), Oct. 17, 1998, 112 

Stat. 2085. 

SECTION 3506 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3506 ..................... 41:254b(e). June 30, 1949, ch. 288, title III, § 304A(e), as 

added Pub. L. 103–355, title I, § 1251(a)(2), 

Oct. 13, 1994, 108 Stat. 3282. 


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SECTION 3507 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3507 ..................... 41:254b(f). June 30, 1949, ch. 288, title III, § 304A(f), as 

added Pub. L. 103–355, title I, § 1251(a)(2), 

Oct. 13, 1994, 108 Stat. 3283. 

SECTION 3508 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3508 ..................... 41:254b(g). June 30, 1949, ch. 288, title III, § 304A(g), as 

added Pub. L. 103–355, title I, § 1251(a)(2), 

Oct. 13, 1994, 108 Stat. 3283. 

CHAPTER 37—AWARDING OF CONTRACTS 

Sec. 

3701. Basis of award and rejection. 

3702. Sealed bids. 

3703. Competitive proposals. 

3704. Post-award debriefings. 

3705. Pre-award debriefings. 

3706. Encouragement of alternative dispute resolution. 

3707. Antitrust violations. 

3708. Protests. 

SECTION 3701 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3701(a) ................. 41:253b(a). June 30, 1949, ch. 288, title III, § 303B(a), (b), 

as added Pub. L. 98–369, title VII, 

§ 2711(a)(2), July 18, 1984, 98 Stat. 1179; 

Pub. L. 103–355, title I, § 1061(c)(1), Oct. 13, 

1994, 108 Stat. 3267. 

3701(b) ................. 41:253b(b). 

SECTION 3702 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3702(a) ................. 41:253b(c) (1st sentence). June 30, 1949, ch. 288, title III, § 303B(c), as 

added Pub. L. 98–369, title VII, § 2711(a)(2), 

July 18, 1984, 98 Stat. 1179; Pub. L. 103–

355, title I, §§ 1061(c)(2), 1063(a), Oct. 13, 

1994, 108 Stat. 3267, 3268. 

3702(b) ................. 41:253b(c) (2d sentence). 

3702(a) ................. 41:253b(c) (3d, last sentences). 

SECTION 3703 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3703(a) ................. 41:253b(d)(1). June 30, 1949, ch. 288, title III, § 303B(d), as 

added Pub. L. 98–369, title VII, § 2711(a)(2), 

July 18, 1984, 98 Stat. 1180; Pub. L. 103–

355, title I, §§ 1061(c)(3), 1063(b), Oct. 13, 

1994, 108 Stat. 3267, 3268; Pub. L. 104–106, 

title XLI, § 4103(b), Feb. 10, 1996, 110 Stat. 

644. 

3703(b) ................. 41:253b(d)(2). 

3703(c) ................. 41:253b(d)(3) (1st sentence). 


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SECTION 3703—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3703(d) ................. 41:253b(d)(3) (last sentence). 

SECTION 3704 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3704(a) ................. 41:253b(e)(1) (1st sentence). June 30, 1949, ch. 288, title III, § 303B(e), as 

added Pub. L. 103–355, title I, § 1064(2), Oct. 

13, 1994, 108 Stat. 3268; Pub. L. 104–106, 

title XLI, § 4104(b)(1), Feb. 10, 1996, 110 

Stat. 645. 

3704(b) ................. 41:253b(e)(1) (last sentence). 

3704(c) ................. 41:253b(e)(2). 

3704(d) ................. 41:253b(e)(3). 

3704(e) ................. 41:253b(e)(4). 

3704(f) .................. 41:253b(e)(5). 

3704(g) ................. 41:253b(g) (related to 

41:253b(e)). 

June 30, 1949, ch. 288, title III, § 303B(g) (related to § 303B(e)), as added Pub. L. 104–106, 

title XLI, § 4104(b)(3), Feb. 10, 1996, 110 

Stat. 645. 

SECTION 3705 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3705(a) ................. 41:253b(f)(1) (1st sentence). June 30, 1949, ch. 288, title III, § 303B(f), (g) 

(related to § 303B(f)), as added Pub. L. 104–

106, title XLI, § 4104(b)(3), Feb. 10, 1996, 110 

Stat. 645. 

3705(b) ................. 41:253b(f)(1) (last sentence). 

3705(c) ................. 41:253b(f)(2). 

3705(d) ................. 41:253b(f)(3). 

3705(e) ................. 41:253b(f)(4). 

3705(f) .................. 41:253b(g) (related to 

41:253b(f)). 

SECTION 3706 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3706 ..................... 41:253b(h). June 30, 1949, ch. 288, title III, § 303B(h), as 

added Pub. L. 104–106, title XLI, § 4104(b)(3), 

Feb. 10, 1996, 110 Stat. 645. 

SECTION 3707 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3707 ..................... 41:253b(i). June 30, 1949, ch. 288, title III, § 303B(i), formerly § 303B(e), as added Pub. L. 98–369, 

title VII, § 2711(a)(2), July 18, 1984, 98 Stat. 

1180; redesignated as § 303B(f), Pub. L. 103–

355, title I, § 1064(1), Oct. 13, 1994, 108 Stat. 

3268; redesignated as § 303B(i), Pub. L. 104–

106, title XLI, § 4104(b)(2), Feb. 10, 1996, 110 

Stat. 645. 


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SECTION 3708 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3708(a) ................. 41:253b(k). June 30, 1949, ch. 288, title III, § 303B(k), formerly § 303B(h), as added Pub. L. 103–355, 

title I, § 1065, Oct. 13, 1994, 108 Stat. 3269; 

redesignated as § 303B(k), Pub. L. 104–106, 

title XLI, § 4104(b)(2), Feb. 10, 1996, 110 

Stat. 645; Pub. L. 104–106, title XLI, 

§ 5607(c), Feb. 10, 1996, 110 Stat. 701, as 

amended Pub. L. 104–201, title X, 

§ 1074(b)(7) (less effective date), Sept. 23, 

1996, 110 Stat. 2660. 

3708(b) ................. 41:253b(l). June 30, 1949, ch. 288, title III, § 303B(l), formerly § 303B(i), as added Pub. L. 103–355, 

title I, § 1066, Oct. 13, 1994, 108 Stat. 3269; 

redesignated as § 303B(l), Pub. L. 104–106, 

title XLI, § 4104(b)(2), Feb. 10, 1996, 110 

Stat. 645. 

CHAPTER 39—SPECIFIC TYPES OF CONTRACTS 

Sec. 

3901. Contracts awarded using procedures other than sealed-bid procedures. 

3902. Severable services contracts for periods crossing fiscal years. 

3903. Multiyear contracts. 

3904. Contract authority for severable services contracts and multiyear contracts. 

3905. Cost contracts. 

SECTION 3901 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3901 ..................... 41:254(a). June 30, 1949, ch. 288, title III, § 304(a), 63 

Stat. 395; Pub. L. 98–369, div. B, title VII, 

§ 2714(a)(3)(A), (B), July 18, 1984, 98 Stat. 

1184; Pub. L. 103–355, title IV, § 4103(c), title 

VIII, § 8204(b), Oct. 13, 1994, 108 Stat. 3341, 

3396. 

In subsection (b)(2), the words ‘‘in its discretion’’ are omitted as 

unnecessary. 

SECTION 3902 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3902 ..................... 41:253l. June 30, 1949, ch. 288, title III, § 303L, as 

added Pub. L. 103–355, title I, § 1073, Oct. 

13, 1994, 108 Stat. 3271, as amended Pub. L. 

104–106, title XLIII, § 4321(a)(1), Feb. 10, 

1996, 110 Stat. 671. 

SECTION 3903 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3903(a) ................. 41:254c(d) (1st sentence). June 30, 1949, ch. 288, title III, § 304B, as 

added Pub. L. 103–355, title I, § 1072, Oct. 

13, 1994, 108 Stat. 3270. 

3903(b) ................. 41:254c(a). 

3903(c) ................. 41:254c(b). 

3903(d) ................. 41:254c(c). 

3903(e) ................. 41:254c(d) (last sentence). 


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SECTION 3903—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3903(f) .................. 41:254c(e). 

SECTION 3904 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3904(a) ................. 41:253l–1. Pub. L. 105–18, title II, § 7004, June 12, 1997, 

111 Stat. 192. 

3904(b) ................. 41:253l–2. Pub. L. 106–57, title II, § 207, Sept. 29, 1999, 

113 Stat. 423. 

3904(c) ................. 41:253l–3. Pub. L. 106–554, § 1(a)(2) [title I, §§ 101, 110], 

Dec. 21, 2000, 114 Stat. 2763A–100, 2763A–

108. 

3904(d) ................. 41:253l–4. 

3904(e) ................. 41:253l–5. Pub. L. 108–7, div. H, title I, §§ 5, 1002, 1202, 

Feb. 20, 2003, 117 Stat. 350, 357, 373. 

3904(f) .................. 41:253l–6. 

3904(g) ................. 41:253l–7. 

3904(h) ................. 41:253l–8. Pub. L. 108–72, § 4, Aug. 15, 2003, 117 Stat. 

889. 

In subsections (a)–(c) and (e)–(h), the words ‘‘procurement of severable services’’ are substituted for ‘‘acquisition of severable services’’ for consistency with 41:253l, restated as section 3902 of the 

revised title. 

In subsection (c), the words ‘‘During fiscal year 2001 and any 

succeeding fiscal year’’ are omitted as obsolete. 

In subsection (d), the words ‘‘Beginning on December 21, 2000, 

and hereafter’’ are omitted as obsolete. 

In subsection (e), the text of 41:253l–5(b) is omitted as obsolete. 

In subsection (f), the text of 41:253l–6(b) is omitted as obsolete. 

In subsection (g), the text of 41:253l–7(b) is omitted as obsolete. 

In subsection (h), the text of 41:253l–8(b) is omitted as obsolete. 

SECTION 3905 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

3905(a) ................. 41:254(b) (1st sentence 

words before 1st 

comma). 

June 30, 1949, ch. 288, title III, § 304(b), 63 

Stat. 395; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 103–355, title I, § 1071, 

title IV, § 4402(c), title X, § 10005(e), Oct. 13, 

1994, 108 Stat. 3270, 3349, 3408. 

3905(b) ................. 41:254(b) (1st sentence 

words after 1st 

comma). 

3905(c) ................. 41:254(b) (last sentence 

words before semicolon). 

3905(d) ................. 41:254(b) (last sentence 

words after semicolon). 

CHAPTER 41—TASK AND DELIVERY ORDER CONTRACTS 

Sec. 

4101. Definitions. 

4102. Authorities or responsibilities not affected. 

4103. General authority. 

4104. Guidance on use of task and delivery order contracts. 


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4105. Advisory and assistance services. 

4106. Orders. 

SECTION 4101 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4101 ..................... 41:253k. June 30, 1949, ch. 288, title III, § 303K, as 

added Pub. L. 103–355, title I, § 1054(a), Oct. 

13, 1994, 108 Stat. 3265. 

SECTION 4102 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4102 ..................... 41:253h note. Pub. L. 103–355, § 1054(b), Oct. 13, 1994, 108 

Stat. 3265. 

The text of section 1054(b)(1) of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103–355, 41:253h note) is omitted as obsolete. 

SECTION 4103 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4103 ..................... 41:253h. June 30, 1949, ch. 288, title III, § 303H, as 

added Pub. L. 103–355, title I, § 1054(a), Oct. 

13, 1994, 108 Stat. 3261. 

In subsection (a), the words ‘‘(as defined in section 253k of this 

title)’’ are omitted as unnecessary. 

SECTION 4104 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4104 ..................... 41:253h note. Pub. L. 106–65, div. A, title VIII, § 804, Oct. 5, 

1999, 113 Stat. 704. 

In this section, the text of section 804(d) of the National Defense 

Authorization Act for Fiscal Year 2000 (Pub. L. 106–65, 41:253h 

note) is omitted as obsolete. 

In subsection (a), the words ‘‘Not later than 180 days after the 

date of the enactment of this Act’’ and ‘‘be revised to’’ are omitted 

as obsolete. 

In subsection (b)(1), the words ‘‘this chapter and sections 2304a 

to 2304d of title 10’’ are substituted for ‘‘the provisions of law referred to in that subsection’’ for clarity. 

SECTION 4105 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4105(a) ................. 41:253i(i). June 30, 1949, ch. 288, title III, § 303I, as 

added Pub. L. 103–355, title I, § 1054(a), Oct. 

13, 1994, 108 Stat. 3262. 

4105(b) ................. 41:253i(a). 

4105(c) ................. 41:253i(b). 

4105(d) ................. 41:253i(c). 

4105(e) ................. 41:253i(d). 

4105(f) .................. 41:253i(e). 

4105(g) ................. 41:253i(f). 

4105(h) ................. 41:253i(g). 


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SECTION 4105—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4105(i) .................. 41:253i(h). 

In subsection (b)(1), the words ‘‘(as defined in section 253k of this 

title)’’ are omitted as unnecessary. 

SECTION 4106 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4106(a) ................. 41:253j(f). June 30, 1949, ch. 288, title III, § 303J, as 

added Pub. L. 103–355, title I, § 1054(a), Oct. 

13, 1994, 108 Stat. 3264. 

4106(b) ................. 41:253j(a). 

4106(c) ................. 41:253j(b). 

4106(d) ................. 41:253j(c). 

4106(e) ................. 41:253j(d). 

4106(f) .................. 41:253j(e). 

In subsection (f)(2), the words ‘‘advocate for competition’’ are substituted for ‘‘competition advocate’’ for consistency with section 

1704 of the revised title. 

CHAPTER 43—ALLOWABLE COSTS 

Sec. 

4301. Definitions. 

4302. Adjustment of threshold amount of covered contract. 

4303. Effect of submission of unallowable costs. 

4304. Specific costs not allowable. 

4305. Required regulations. 

4306. Applicability of regulations to subcontractors. 

4307. Contractor certification. 

4308. Penalties for submission of cost known to be unallowable. 

4309. Burden of proof on contractor. 

4310. Proceeding costs not allowable. 

SECTION 4301 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4301(1) ................. 41:256(m)(1). June 30, 1949, ch. 288, title III, § 306(m), as 

added Pub. L. 105–85, title VIII, § 808(b)(2), 

Nov. 18, 1997, 111 Stat. 1836; Pub. L. 105–

261, title VIII, § 804(b), Oct. 17, 1998, 112 

Stat. 2083. 

4301(2) ................. 41:256(l)(1). June 30, 1949, ch. 288, title III, § 306(l)(1), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3315. 

4301(3) ................. 41:256(m)(3). 

4301(4) ................. 41:256(m)(2). 

SECTION 4302 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4302 ..................... 41:256(l)(2). June 30, 1949, ch. 288, title III, § 306(l)(2), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3315. 


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SECTION 4303 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4303(a) ................. 41:256(a). June 30, 1949, ch. 288, title III, § 306(a)–(d), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3309. 

4303(b) ................. 41:256(b). 

4303(c) ................. 41:256(c). 

4303(d) ................. 41:256(d). 

In subsection (a), the words ‘‘(referred to in section 421(c)(1) of 

this title)’’ are omitted as unnecessary. 

SECTION 4304 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4304 ..................... 41:256(e). June 30, 1949, ch. 288, title III, § 306(e), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3310; Pub. 

L. 105–85, title VIII, § 808(b)(1), Nov. 18, 

1997, 111 Stat. 1836. 

SECTION 4305 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4305(a) ................. 41:256(f)(1) (1st, 2d sentences). June 30, 1949, ch. 288, title III, § 306(f), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3312. 

4305(b) ................. 41:256(f)(1) (last sentence). 

4305(c) ................. 41:256(f)(2)–(4). 

SECTION 4306 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4306 ..................... 41:256(g). June 30, 1949, ch. 288, title III, § 306(g), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3313. 

SECTION 4307 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4307 ..................... 41:256(h). June 30, 1949, ch. 288, title III, § 306(h), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3313. 

SECTION 4308 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4308 ..................... 41:256(i). June 30, 1949, ch. 288, title III, § 306(i), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3313. 


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SECTION 4309 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4309 ..................... 41:256(j). June 30, 1949, ch. 288, title III, § 306(j), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3313. 

SECTION 4310 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4310(a) ................. 41:256(k)(6). June 30, 1949, ch. 288, title III, § 306(k), as 

added Pub. L. 100–700, § 8(a)(1), Nov. 19, 

1988, 102 Stat. 4634; Pub. L. 103–355, title 

II, § 2151, Oct. 13, 1994, 108 Stat. 3313. 

4310(b) ................. 41:256(k)(1). 

4310(c) ................. 41:256(k)(2). 

4310(d) ................. 41:256(k)(3). 

4310(e) ................. 41:256(k)(4). 

4310(f) .................. 41:256(k)(5). 

CHAPTER 45—CONTRACT FINANCING 

Sec. 

4501. Authority of executive agency. 

4502. Payment. 

4503. Security for advance payments. 

4504. Conditions for progress payments. 

4505. Payments for commercial items. 

4506. Action in case of fraud. 

SECTION 4501 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4501 ..................... 41:255(a). June 30, 1949, ch. 288, title III, § 305(a), 63 

Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 

72 Stat. 966; Pub. L. 103–355, title II, 

§ 2051(a)(2), (c), Oct. 13, 1994, 108 Stat. 3304. 

SECTION 4502 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4502(a) ................. 41:255(b). June 30, 1949, ch. 288, title III, § 305(b), as 

added Pub. L. 103–355, title II, § 2051(b), Oct. 

13, 1994, 108 Stat. 3304. 

4502(b) ................. 41:255(c). June 30, 1949, ch. 288, title III, § 305(c), 63 

Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 

72 Stat. 966; Pub. L. 103–355, title II, 

§ 2051(a)(3), (5), Oct. 13, 1994, 108 Stat. 3304. 

SECTION 4503 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4503 ..................... 41:255(d). June 30, 1949, ch. 288, title III, § 305(d), 63 

Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 

Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 

72 Stat. 966; Pub. L. 103–355, title II, 

§ 2051(a)(4), (5), (d), Oct. 13, 1994, 108 Stat. 

3304. 


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SECTION 4504 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4504 ..................... 41:255(e). June 30, 1949, ch. 288, title III, § 305(e), as 

added Pub. L. 103–355, title II, § 2051(e), Oct. 

13, 1994, 108 Stat. 3304, as amended Pub. L. 

104–106, title XLIII, § 4321(a)(4), Feb. 10, 

1996, 110 Stat. 671. 

SECTION 4505 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4505 ..................... 41:255(f). June 30, 1949, ch. 288, title III, § 305(f), as 

added Pub. L. 103–355, title II, § 2051(e), Oct. 

13, 1994, 108 Stat. 3304, as amended Pub. L. 

104–106, title XLIII, § 4321(a)(4), Feb. 10, 

1996, 110 Stat. 671. 

SECTION 4506 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4506 ..................... 41:255(g). June 30, 1949, ch. 288, title III, § 305(g), as 

added Pub. L. 103–355, title II, § 2051(e), Oct. 

13, 1994, 108 Stat. 3305, as amended Pub. L. 

104–106, title XLIII, § 4321(a)(4), Feb. 10, 

1996, 110 Stat. 671. 

CHAPTER 47—MISCELLANEOUS 

Sec. 

4701. Determinations and decisions. 

4702. Prohibition on release of contractor proposals. 

4703. Validation of proprietary data restrictions. 

4704. Prohibition of contractors limiting subcontractor sales directly to Federal 

Government. 

4705. Protection of contractor employees from reprisal for disclosure of certain information. 

4706. Examination of facilities and records of contractor. 

4707. Remission of liquidated damages. 

4708. Payment of reimbursable indirect costs in cost-type research and development contracts with educational institutions. 

4709. Implementation of electronic commerce capability. 

SECTION 4701 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4701 ..................... 41:257. June 30, 1949, ch. 288, title III, § 307, 63 Stat. 

396; Pub. L. 85–800, § 5, Aug. 28, 1958, 72 

Stat. 967; Pub. L. 89–343, §§ 3, 4, Nov. 8, 

1965, 79 Stat. 1303; Pub. L. 98–369, title VII, 

§ 2714(a)(4), July 18, 1984, 98 Stat. 1184; 

Pub. L. 104–106, title XLIII, § 4321(e)(6), Feb. 

10, 1996, 110 Stat. 675; Pub. L. 104–316, title 

I, § 121(c), Oct. 19, 1996, 110 Stat. 3836. 

41:262. June 30, 1949, ch. 288, title III, § 312, as added 

Pub. L. 103–355, title I, § 1553, Oct. 13, 1994, 

108 Stat. 3300. 


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SECTION 4702 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4702(a) ................. 41:253b(m)(3). June 30, 1949, ch. 288, title III, § 303B(m), as 

added Pub. L. 104–201, title VIII, § 821(b), 

Sept. 23, 1996, 110 Stat. 2609. 

4702(b) ................. 41:253b(m)(1). 

4702(c) ................. 41:253b(m)(2). 

In subsection (b), the words ‘‘Except as provided in paragraph 

(2)’’ are omitted as unnecessary. 

SECTION 4703 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4703(a) ................. 41:253d(a). June 30, 1949, ch. 288, title III, § 303D, formerly § 303E, as added Pub. L. 98–577, title 

II, § 203(a), Oct. 30, 1984, 98 Stat. 3071; renumbered § 303D, Pub. L. 99–145, title XIII, 

§ 1304(c)(4)(A), Nov. 8, 1985, 99 Stat. 742. 

4703(b) ................. 41:253d(b). 

4703(c) ................. 41:253d(c) (1st sentence). 

4703(d) ................. 41:253d(c) (last sentence). 

4703(e) ................. 41:253d(d). 

4703(f) .................. 41:253d(e). 

4703(g) ................. 41:253d(f). 

SECTION 4704 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4704(a) ................. 41:253g(a). June 30, 1949, ch. 288, title III, § 303G(a), (b), 

formerly § 303H, as added Pub. L. 98–577, 

title II, § 206(a), Oct. 30, 1984, 98 Stat. 3073; 

renumbered § 303G, Pub. L. 99–145, title 

XIII, § 1304(c)(4)(A), Nov. 8, 1985, 99 Stat. 

742. 

4704(b) ................. 41:253g(b). 

4704(c) ................. 41:253g(c). June 30, 1949, ch. 288, title III, § 303G(c), as 

added Pub. L. 103–355, title IV, § 4103(b), 

Oct. 13, 1994, 108 Stat. 3341. 

4704(d) ................. 41:253g(d). June 30, 1949, ch. 288, title III, § 303G(d), as 

added Pub. L. 103–355, title VIII, § 8204(a), 

Oct. 13, 1994, 108 Stat. 3396. 

SECTION 4705 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4705(a) ................. 41:265(e). June 30, 1949, ch. 288, title III, § 315, as added 

Pub. L. 103–355, title VI, § 6006, Oct. 13, 

1994, 108 Stat. 3365; Pub. L. 104–106, title 

XLIII, § 4321(e)(8), Feb. 10, 1996, 110 Stat. 

675. 

4705(b) ................. 41:265(a). 

4705(c) ................. 41:265(b). 

4705(d) ................. 41:265(c). 

4705(e) ................. 41:265(d). 

In subsection (d)(2), the word ‘‘contractor’’ is substituted for ‘‘person’’ for clarity and for consistency with subsection (d)(1). 


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SECTION 4706 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4706(a) ................. 41:254d(i). June 30, 1949, ch. 288, title III, § 304C(a)(1), 

(b), (c), (g)–(i), as added Pub. L. 103–355, title 

II, § 2251(a), Oct. 13, 1994, 108 Stat. 3318, 

3319, 3320. 

4706(b)(1) ............. 41:254d(a)(1). 

4706(b)(2) ............. 41:254d(a)(2). June 30, 1949, ch. 288, title III, § 304C(a)(2), as 

added Pub. L. 103–355, title II, § 2251(a), Oct. 

13, 1994, 108 Stat. 3318; Pub. L. 104–106, 

title XLIII, § 4321(e)(5), Feb. 10, 1996, 110 

Stat. 675. 

4706(c) ................. 41:254d(b). 

4706(d) ................. 41:254d(c). 

4706(e) ................. 41:254d(d). June 30, 1949, ch. 288, title III, § 304C(d), as 

added Pub. L. 103–355, title II, § 2251(a), Oct. 

13, 1994, 108 Stat. 3319; Pub. L. 104–201, 

title VIII, § 808(b), Sept. 23, 1996, 110 Stat. 

2607. 

4706(f) .................. 41:254d(e). 

4706(g) ................. 41:254d(f). June 30, 1949, ch. 288, title III, § 304C(f), as 

added and amended Pub. L. 103–355, title II, 

§ 2251(a), title IV, § 4103(d), Oct. 13, 1994, 

108 Stat. 3320, 3341. 

4706(h) ................. 41:254d(g). 

4706(i) .................. 41:254d(h). 

In subsection (c)(4), the words ‘‘Committee on Government Reform’’ are substituted for ‘‘Committee on Government Operations’’

on authority of section 1(a)(6) of Public Law 104–14 (2 U.S.C. note 

prec. 21) and Rule X(1)(h) of the Rules of the House of Representatives, enacted by House Resolution No. 5 (106th Congress, January 

6, 1999). The words ‘‘Committee on Homeland Security and Governmental Affairs’’ are substituted for ‘‘Committee on Governmental Affairs’’ on authority of Senate Resolution No. 445 (108th 

Congress, October 9, 2004). 

SECTION 4707 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4707 ..................... 41:256a. Sept. 5, 1950, ch. 849, § 10(a), 64 Stat. 591; 

Pub. L. 104–316, title II, § 202(u), Oct. 19, 

1996, 110 Stat. 3845. 

SECTION 4708 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4708 ..................... 41:254a. Pub. L. 87–638, Sept. 5, 1962, 76 Stat. 437. 

The words ‘‘On and after September 5, 1962’’ are omitted as obsolete. 

SECTION 4709 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

4709 ..................... 41:252c. June 30, 1949, ch. 288, title III, § 302C, as 

added Pub. L. 103–355, title IX, § 9003, Oct. 

13, 1994, 108 Stat. 3403; Pub. L. 105–85, title 

VIII, § 850(f)(4)(A), Nov. 18, 1997, 111 Stat. 

1850. 


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Subtitle II—Other Advertising and Contract 

Provisions 

Chapter Sec. 

61. Advertising .................................................................................................. 6101 

63. General Contract Provisions ..................................................................... 6301 

65. Contracts for Materials, Supplies, Articles, and Equipment Exceeding 

$10,000 .................................................................................................... 6501 

67. Service Contract Labor Standards ............................................................ 6701 

69. Contract Disputes ....................................................................................... 6901 

CHAPTER 61—ADVERTISING 

Sec. 

6101. Advertising requirement for Federal Government purchases and sales. 

6102. Exceptions from advertising requirement. 

6103. Opening of bids. 

SECTION 6101 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6101(a) ................. 41:5a. Aug. 2, 1946, ch. 744, § 18, 60 Stat. 811. 

6101(b)–(d) ........... 41:5. R.S. § 3709; Aug. 2, 1946, ch. 744, § 9(a), (c), 60 

Stat. 809; June 30, 1949, ch. 288, title VI, 

§ 602(f), formerly title V, § 502(e), 63 Stat. 

403, renumbered title VI, § 602(f), Sept. 5, 

1950, ch. 849, §§ 6(a), (b), 8(c), 64 Stat. 583, 

591; Pub. L. 85–800, § 7, Aug. 28, 1958, 72 

Stat. 967; Pub. L. 93–356, § 1, July 25, 1974, 

88 Stat. 390; Pub. L. 98–191, § 9(b), Dec. 1, 

1983, 97 Stat. 1332. 

In subsection (a), before paragraph (1), the words ‘‘In this section’’ are substituted for ‘‘as used in this Act’’ as the probable intent 

of Congress. Section 9(a) of the Act of August 2, 1946 (ch. 744, 60 

Stat. 809) restated 41:5 generally and section 9(c) of the Act, an 

independent provision, was editorially added as the last paragraph 

of 41:5. The definitions which apply to ‘‘as used in this Act’’ are 

probably intended to apply also to 41:5 as restated by the Act. The 

definitions for ‘‘department’’ and ‘‘continental United States’’ are 

omitted because those terms do not appear in 41:5. In paragraph 

(1), the words ‘‘section 9104 of title 31’’ are substituted for ‘‘section 

104 of the Government Corporation Control Act, approved December 6, 1945’’ because of section 4(b) of Public Law. 97–258 (31 

U.S.C. note prec. 101). In paragraphs (1) and (2), the word ‘‘includes’’ is substituted for ‘‘shall be construed to include’’ and for 

‘‘shall be construed as including’’, respectively, to eliminate unnecessary words. 

In subsection (c), the words ‘‘as authorized by section 29 of the 

Surplus Property Act of 1944 (50 U.S.C. App. 1638)’’ in section 

3709 of the Revised Statutes are omitted because section 29 was 

repealed by section 602(a)(1) of the Federal Property and Administrative Services Act of 1949 (ch. 288, 63 Stat. 399). 

SECTION 6102 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6102(a) ................. 41:6a(a). Oct. 10, 1940, ch. 851, § 2(a), 54 Stat. 1110; Oct. 

31, 1951, ch. 654, § 3(8), 65 Stat. 708. 

6102(b) ................. 41:6a(f). Oct. 10, 1940, ch. 851, § 2(f), (j), 54 Stat. 1110. 


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SECTION 6102—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6102(c) ................. 41:6a(h). Oct. 10, 1940, ch. 851, § 2(h), 54 Stat. 1110; Oct. 

31, 1951, ch. 654, § 3(9), 65 Stat. 708. 

6102(d) ................. 41:6a(j). 

6102(e) ................. 41:6a–1. Pub. L. 89–90, (2d par. on p. 276), July 27, 

1965, 79 Stat. 276; Pub. L. 93–356, § 2, July 

25, 1974, 88 Stat. 390; Pub. L. 98–191, § 9(c), 

Dec. 1, 1983, 97 Stat. 1332. 

6102(f) .................. 41:6b(d). June 24, 1940, ch. 412, 54 Stat. 504. 

6102(g) ................. 41:6a–3. Pub. L. 108–7, div. H, title I, §§ 104, 1102, Feb. 

20, 2003, 117 Stat. 354, 370. 

6102(h) ................. 41:6a–4. 

In subsections (a)–(d), the words ‘‘under any appropriation Act’’

are omitted as unnecessary. 

In subsection (e), the words ‘‘On and after July 27, 1965’’ are 

omitted as unnecessary. The words ‘‘according to common business 

practice’’ are substituted for ‘‘in the manner common among businessmen’’ for consistency in the revised title. 

In subsection (g), the words ‘‘in any fiscal year’’ are omitted as 

unnecessary. 

In subsection (h), the text of 41:6a–4(b) is omitted as unnecessary. 

SECTION 6103 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6103 ..................... 41:8. R.S. § 3710. 

CHAPTER 63—GENERAL CONTRACT PROVISIONS 

Sec. 

6301. Authorization requirement. 

6302. Contracts for fuel made by Secretary of the Army. 

6303. Certain contracts limited to appropriated amounts. 

6304. Certain contracts limited to one-year term. 

6305. Prohibition on transfer of contract and certain allowable assignments. 

6306. Prohibition on Members of Congress making contracts with Federal Government. 

6307. Contracts with Federal Government-owned establishments and availability 

of appropriations. 

6308. Contracts for transportation of Federal Government securities. 

6309. Honorable discharge certificate in lieu of birth certificate. 

SECTION 6301 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6301(a) ................. 41:11(a) (words before 

2nd comma). 

R.S. § 3732; Pub. L. 89–687, title VI, § 612(e), 

Oct. 15, 1966, 80 Stat. 993; Pub. L. 98–557, 

§ 17(e)(1), (2), Oct. 30, 1984, 98 Stat. 2868; 

Pub. L. 104–106, div. D, title XLIII, 

§ 4322(b)(4), Feb. 10, 1996, 110 Stat. 677. 

6301(b) ................. 41:11(a) (words after 2nd 

comma), (b). 

6301(c) ................. 41:14. R.S. § 3736. 

In subsection (b)(1), the words ‘‘Secretary of Defense’’ are substituted for ‘‘Department of Defense’’ because of 10:113. The words 

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ating’’ are substituted for ‘‘Department of Transportation’’ because 

of 6:468(b) and (h) and 552(d), 14:3, and the Department of Homeland Security Reorganization Plan of November 25, 2002 (H. Doc. 

No. 108–16, 108th Cong., 1st Sess. (6 U.S.C. 542 note)). 

SECTION 6302 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6302 ..................... 41:11a. June 30, 1921, ch. 33, § 1 (last proviso on p. 78), 

42 Stat. 78. 

The words ‘‘Secretary of the Army’’ are substituted for ‘‘Secretary 

of War’’ because of section 205(a) of the National Security Act of 

1947 (ch. 343, 61 Stat. 501). Section 205(a) was repealed by section 

53 of the Act of August 10, 1956 (ch. 1041, 70A Stat. 676). Section 

1 of the Act of August 10, 1956 (70A Stat. 1) enacted Title 10, 

‘‘Armed Forces’’, and under sections 3011 to 3013 of title 10, the 

Department of the Army remains under the administrative supervision of the Secretary of the Army. 

SECTION 6303 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6303 ..................... 41:12. R.S. § 3733. 

The words ‘‘the activity covered by the contract’’ are substituted 

for ‘‘the specific purpose’’ for clarity. 

SECTION 6304 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6304 ..................... 41:13. R.S. § 3735. 

The words ‘‘an executive department shall not’’ are substituted 

for ‘‘it shall not be lawful for any of the executive departments to’’

to state the legal prohibition directly and to eliminate unnecessary 

words. 

SECTION 6305 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6305(a) ................. 41:15(a). R.S. § 3737; Oct. 9, 1940, ch. 779, § 1, 54 Stat. 

1029; May 15, 1951, ch. 75, 65 Stat. 41; Pub. 

L. 103–355, title II, § 2451, Oct. 13, 1994, 108 

Stat. 3324; Pub. L. 104–106, div. D, title 

XLIII, § 4321(i)(9), Feb. 10, 1996, 110 Stat. 

676. 

6305(b)(1) ............. 41:15(b) (words before 

par. (1) less words related to minimum 

amount). 

6305(b)(2) ............. 41:15(b) (words before 

par. (1) related to minimum amount). 

6305(b)(3) ............. 41:15(b)(1). 

6305(b)(4) ............. 41:15(b)(2) (related to 

full balance due). 

6305(b)(5) ............. 41:15(b)(2) (related to 

single assignment). 

6305(b)(6) ............. 41:15(b)(3). 


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SECTION 6305—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6305(b)(7) ............. 41:15(c). 

6305(b)(8) ............. 41:15(d). 

6305(b)(9)(A) ........ 41:15(e). 

6305(b)(9)(B) ........ 41:15(f) (less parenthetical phrase in par. (3)). 

6305(b)(9)(C) ........ 41:15(f) (parenthetical 

phrase in par. (3)), (g). 

In subsection (a), the words ‘‘The party to whom the Federal 

Government gives a contract or order’’ are substituted for ‘‘the 

party to whom such contract or order is given’’ for clarity. The 

words ‘‘A purported transfer in violation of this subsection’’ are 

substituted for ‘‘any such transfer’’ because an actual transfer is 

precluded by this provision. 

In subsection (b)(1), the words ‘‘amounts due from the Federal 

Government’’ are substituted for ‘‘moneys due or to become due 

from the United States or from any agency or department thereof’’

to eliminate unnecessary words. The words ‘‘may be assigned’’ are 

added to provide explicitly for authority that is necessarily implied 

by the source provision. 

In subsection (b)(3), the words ‘‘in the case of any contract entered into after October 9, 1940’’ are omitted as obsolete. 

In subsection (b)(5), the words ‘‘participating in such financing’’

are omitted as unnecessary. 

In subsection (b)(8), the words ‘‘is not liable to make any refund 

to the Federal Government’’ are substituted for ‘‘no [liability] . . . 

shall create or impose any liability on the part of the assignee to 

make restitution, refund, or repayment to the United States of any 

amount heretofore since July 1, 1950, or hereafter received under 

the assignment’’ to eliminate unnecessary words. The words ‘‘an assignor’s liability to the Federal Government’’ are substituted for ‘‘liability of any nature of the assignor to the United States or any 

department or agency thereof ’’ for clarity and to eliminate unnecessary words. 

In subsection (b)(9)(A), the words ‘‘except any such contract 

under which full payment has been made’’ are omitted as unnecessary because subsection (b)(8) precludes refund where full payment 

has already been made. The words ‘‘payments made to an assignee 

under the contract’’ are substituted for ‘‘payments to be made to 

the assignee of any moneys due or to become due under such contract’’ to eliminate unnecessary words. 

In subsection (b)(9)(B), the words ‘‘When a ‘no reduction or setoff ’

provision as described in subparagraph (A) is included in a contract’’ are substituted for ‘‘If a provision described in subsection (e) 

of this section or a provision to the same general effect has been 

at any time heretofore or is hereafter included or inserted in any 

such contract’’, the words ‘‘payments to the assignee’’ are substituted for ‘‘payments to be made thereafter to an assignee of any 

moneys due or to become due’’, and the words ‘‘an assignor’s liability’’ are substituted for ‘‘any liability of any nature of the assignor 

to the United States or any department or agency thereof ’’, for 

clarity and to eliminate unnecessary words. 


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In subsection (b)(9)(C), the text of 40:15(g), which provided that 

nothing in 40:15 affected rights and obligations accrued before subsection (g) was added by the Act of May 15, 1951 (ch. 75, 65 Stat. 

41), is omitted as obsolete. 

SECTION 6306 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6306(a) ................. 41:22 (1st sentence). R.S. § 3741; Feb. 27, 1877, ch. 69, (16th complete par. on p. 249), 19 Stat. 249; Pub. L. 

103–355, title VI, § 6004, Oct. 13, 1994, 108 

Stat. 3364; Pub. L. 104–106, div. D, title 

XLIII, § 4321(i)(12), Feb. 10, 1996, 110 Stat. 

676. 

6306(b) ................. 41:22 (last sentence). Jan. 25, 1934, ch. 5, (related to R.S. § 3741), 48 

Stat. 337; June 27, 1934, ch. 847, title V, 

§ 510, 48 Stat. 1264; Aug. 26, 1937, ch. 821, 

50 Stat. 838. 

In subsection (b)(2), the words ‘‘Emergency Farm Mortgage Act 

of 1933’’ and ‘‘Federal Farm Mortgage Corporation Act’’ are omitted 

because all provisions of those Acts have previously been executed 

or repealed. 

In subsection (b)(2)(B), the words ‘‘Farm Credit Act of 1971 (12 

U.S.C. 2001 et seq.)’’ are substituted for ‘‘Federal Farm Loan Act’’

and ‘‘Farm Credit Act of 1933’’ because of section 5.40(a), formerly 

5.26(a), of the Farm Credit Act of 1971 (Pub. L. 92–181, 12 U.S.C. 

2001 note). 

In subsection (b)(2)(C), the words ‘‘Home Owners’ Loan Act’’ are 

substituted for ‘‘Home Owners’ Loan Act of 1933’’ because of the 

amendment to 12:1461 made by Public Law 101–73. 

SECTION 6307 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6307 ..................... 41:23. June 5, 1920, ch. 240, (last par. under heading 

‘‘Purchase of Articles Manufactured at Government Arsenals’’), 41 Stat. 975. 

July 1, 1922, ch. 259, (1st proviso on p. 812), 42 

Stat. 812. 

The words ‘‘heretofore or’’ are omitted as obsolete. The word ‘‘hereafter’’ is omitted as unnecessary because the provision is restated as permanent law rather than as part of a fiscal year appropriation. 

SECTION 6308 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6308 ..................... 41:24. July 7, 1884, ch. 332, (words after ‘‘fifty five 

thousand dollars’’ in 3d par. under heading 

‘‘Miscellaneous Objects Under the Treasury 

Department’’), 23 Stat. 204. 

The words ‘‘bullion, cash, or securities of the Federal Government’’ are substituted for ‘‘moneys, bullion, coin, notes, bonds, and 

other securities of the United States, and paper’’ to eliminate unnecessary words. The word ‘‘awarded’’ is substituted for ‘‘let’’ to use 

more modern terminology. 


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SECTION 6309 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6309(a) ................. 41:49. June 22, 1942, ch. 432, § 1, 56 Stat. 375. 

6309(b) ................. 41:50. June 22, 1942, ch. 432, § 2, 56 Stat. 376; Pub. L. 

97–31, § 12(16), Aug. 6, 1981, 95 Stat. 154. 

In subsection (a), the words ‘‘Air Force’’ are added because of section 207(a) and (f) of the National Security Act of 1947 (ch. 343, 

61 Stat. 502, 503). Section 207(a) and (f) was repealed by section 

53 of the Act of August 10, 1956 (ch. 1041, 70A Stat. 676). Section 

1 of the Act of August 10, 1956 (70A Stat. 1) enacted Title 10, 

‘‘Armed Forces’’ and under subtitle D of title 10 the Department of 

the Air Force remained an independent administrative entity in 

the Department of Defense. 

Subsection (b)(2)(B) is set out as a separate provision to clarify 

that the certification applies only to contracts other than contracts 

with the Federal Government. If the certification were to be construed as applying to all contracts, then the words ‘‘under a contract with the United States or’’ in section 2 of the Act of June 22, 

1942, would be rendered meaningless. 

In subsection (b)(2)(B), the words ‘‘Secretary of the Army’’ are 

substituted for ‘‘Secretary of War’’, and the words ‘‘Secretary of the 

Air Force’’ are added, because of sections 205(a) and 207(a) and (f) 

of the National Security Act of 1947 (ch. 343, 61 Stat. 501, 502, 

503). Sections 205(a) and 207(a) and (f) were repealed by section 

53 of the Act of August 10, 1956 (ch. 1041, 70A Stat. 676). Section 

1 of the Act of August 10, 1956 (70A Stat. 1) enacted Title 10, 

‘‘Armed Forces’’ and under sections 3010 to 3013 and 8010 to 8013 

the Departments of the Army and Air Force remained under the 

administrative supervision of the Secretaries of the Army and Air 

Force, respectively. The words ‘‘Secretary of the Department in 

which the Coast Guard is operating’’ are substituted for ‘‘Secretary 

of Transportation’’ because of 6:468(b) and (h), 551(d), and 552(d), 

14:1 and 3, and the Department of Homeland Security Reorganization Plan of November 25, 2002 (H. Doc. No. 108–16, 108th Cong., 

1st Sess. (6 U.S.C. 542 note)). 

CHAPTER 65—CONTRACTS FOR MATERIALS, SUPPLIES, 

ARTICLES, AND EQUIPMENT EXCEEDING $10,000 

Sec. 

6501. Definitions. 

6502. Required contract terms. 

6503. Breach or violation of required contract terms. 

6504. Three-year prohibition on new contracts in case of breach or violation. 

6505. Exclusions. 

6506. Administrative provisions. 

6507. Hearing authority and procedures. 

6508. Authority to make exceptions. 

6509. Other procedures. 

6510. Manufacturers and regular dealers. 

6511. Effect on other law. 


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SECTION 6501 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6501(1) ................. 41:35 (matter before subsec. (a) related to definition of ‘‘agency of the 

United States’’). 

June 30, 1936, ch. 881, § 1 (matter before subsec. (a) related to definition of ‘‘agency of the 

United States’’), 49 Stat. 2036; Pub. L. 103–

355, title VII, § 7201(1), Oct. 13, 1994, 108 

Stat. 3378. 

6501(2) ................. 41:41. June 30, 1936, ch. 881, § 7, 49 Stat. 2039; Pub. 

L. 95–598, title III, § 326, Nov. 6, 1978, 92 

Stat. 2679. 

6501(3) ................. no source. 

SECTION 6502 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6502 (matter before par. (1)).41:35 (matter before subsec. (a) less words related to definition of 

‘‘agency of the United 

States’’). 

June 30, 1936, ch. 881, § 1 (matter before subsec. (a) less words related to definition of 

‘‘agency of the United States’’), (a), 49 Stat. 

2036; Pub. L. 103–355, title VII, § 7201(1), 

Oct. 13, 1994, 108 Stat. 3378. 

6502(1) ................. 41:35(a). 

41:45. June 30, 1936, ch. 881, § 13, formerly § 11, 49 

Stat. 2039; renumbered § 12, June 30, 1952, 

ch. 530, title III, § 301, 66 Stat. 308; renumbered § 13, Pub. L. 104–106, div. D, title 

XLIII, § 4321(f)(1)(B), Feb. 10, 1996, 110 Stat. 

675. 

6502(2)–(4) ........... 41:35(b)–(d). June 30, 1936, ch. 881, § 1(b)–(d), 49 Stat. 2036; 

May 13, 1942, ch. 306, 56 Stat. 277; Pub. L. 

90–351, title I, § 819(b), formerly § 827(b), as 

added Pub. L. 96–157, § 2, Dec. 27, 1979, 93 

Stat. 1215 and renumbered § 819(b), Pub. L. 

98–473, title II, § 609B(f), Oct. 12, 1984, 98 

Stat. 2093; Pub. L. 99–145, title XII, 

§ 1241(b), Nov. 8, 1985, 99 Stat. 734; Pub. L. 

103–355, title VII, § 7201(1), Oct. 13, 1994, 

108 Stat. 3378. 

In the matter before paragraph (1), the words ‘‘and entered into’’ are omitted as unnecessary. 

In paragraph (1), the words ‘‘under the contract’’ are substituted 

for ‘‘used in the performance of the contract’’ in 41:35(a) to eliminate unnecessary words and for consistency in the chapter. The 

words ‘‘Sections 35 to 45 of this title shall apply to all contracts entered into pursuant to invitations for bids issued on or after ninety 

days from June 30, 1936’’ in 41:45 are omitted as obsolete. 

In paragraph (2), the words ‘‘under the contract’’ are substituted 

for ‘‘used in the performance of the contract’’ to eliminate unnecessary words and for consistency in the chapter. 

In paragraph (3), the words ‘‘No individual under 16 years of 

age’’ are substituted for ‘‘no male person under sixteen years of age 

and no female person under eighteen years of age’’ to reflect the 

interpretation of this provision subsequent to enactment of civil 

rights laws such as section 703 of the Civil Rights Act of 1964 

(42:2000e–2), as carried out by the Department of Labor through 

41 C.F.R. Part 50–201.104. The words ‘‘incarcerated individual’’ are 

substituted for ‘‘convict labor’’ the first time the words appear because the term ‘‘convict labor’’ is ambiguous and may be interpreted to include individuals who are not incarcerated. This would 

be an inappropriate interpretation because 41:35(c) provides an exVerDate Aug 31 2005 04:03 Sep 16, 2006 Jkt 049006 PO 00000 Frm 00065 Fmt 6659 Sfmt 6601 E:\HR\OC\HR663.XXX HR663

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ception for ‘‘convict labor’’ that satisfies the conditions of 18:1761(c) 

regarding certain non-Federal prison work projects. The words ‘‘or 

production’’ are omitted for consistency with the source provisions 

for paragraphs (1) and (2) and because, in this context, the concept 

of ‘‘production’’ is included in the words ‘‘manufacture or furnishing’’. The words ‘‘under the contract’’ are substituted for ‘‘included in such contract’’ for consistency in the chapter. 

SECTION 6503 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6503 ..................... 41:36. June 30, 1936, ch. 881, § 2, 49 Stat. 2037. 

In subsection (b)(1), the words ‘‘individual under 16 years of age’’ are substituted for ‘‘male person under sixteen years of age or each 

female person under eighteen years of age’’ to reflect the interpretation of this provision subsequent to enactment of civil rights laws 

such as section 703 of the Civil Rights Act of 1964 (42:2000e–2), 

as carried out by the Department of Labor through 41 C.F.R. Part 

50–201.104. The words ‘‘incarcerated individual’’ are substituted for ‘‘convict laborer’’ because of the exception to convict labor that satisfies the conditions of 18:1761(c). Section 1761 does not apply to 

non-incarcerated convicts. 

Subsection (b)(2) is substituted for ‘‘a sum equal to the amount 

of any deductions, rebates, refunds, or underpayment of wages due 

to any employee engaged in the performance of such contract’’ for 

consistency in the chapter. 

In subsection (c), the words ‘‘made the contract’’ and ‘‘make other 

contracts’’ are substituted for ‘‘entering into such contract’’ and ‘‘enter into other contracts’’, respectively, for consistency in the revised title. 

In subsection (d), the words ‘‘suit brought by the Attorney General’’ are substituted for ‘‘suits brought in the name of the United 

States of America by the Attorney General thereof ’’ to eliminate 

unnecessary words. 

SECTION 6504 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6504 ..................... 41:37. June 30, 1936, ch. 881, § 3, 49 Stat. 2037. 

In this section, the words ‘‘or firms’’ are omitted because of the 

definition of ‘‘person’’ in 41:41, restated in section 6501 of the revised title. 

In subsection (a), the words ‘‘or violated’’ are added for consistency in the chapter. 

In subsection (b), the words ‘‘contract described in section 6502 

of this title’’ are substituted for ‘‘contracts’’ to clarify the scope of 

the prohibition. The words ‘‘the date of the determination by the 

Secretary that a breach or violation occurred’’ are substituted for ‘‘the date the Secretary of Labor determines such breach to have 

occurred’’ to clarify that the three-year period begins with the date 

of the Secretary’s determination and not with the date of the 

breach or violation. The words ‘‘or violation’’ are added for consistency in the chapter. 


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SECTION 6505 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6505 ..................... 41:43. June 30, 1936, ch. 881, § 9, 49 Stat. 2039. 

SECTION 6506 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6506 ..................... 41:38. June 30, 1936, ch. 881, § 4, 49 Stat. 2038. 

In subsection (b), the word ‘‘rules’’ is omitted as included in ‘‘regulations’’. 

In subsection (c), the words ‘‘and to prescribe rules and regulations with respect thereto’’ are omitted as unnecessary because of 

subsection (b). 

In subsection (d), the words ‘‘without regard to the provisions of 

the civil-service laws’’, which appear in section 4 of the WalshHealey Act (June 30, 1936, ch. 881, 49 Stat. 2038), are omitted as 

obsolete because of Executive Order 8743, April 23, 1941 (5 U.S.C. 

3301 note), issued by the President pursuant to the Act of November 26, 1940, ch. 919, title I, § 1, 54 Stat. 1211. The words ‘‘the 

Classification Act of 1923’’, which appear in section 4 of the WalshHealey Act (June 30, 1936, ch. 881, 49 Stat. 2038), are considered 

to be a reference to the Classification Act of 1949 because of section 

1106(a) of the Classification Act of 1949 (Oct. 28, 1949, ch. 782, 63 

Stat. 972). The words ‘‘chapter 51 and subchapter III of chapter 53 

of title 5’’ are substituted for the reference to the Classification Act 

of 1949 because of section 7(b) of Public Law 89–554 (5 U.S.C. note 

prec. 101). 

SECTION 6507 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6507(a) ................. 41:43a(b) (1st sentence). June 30, 1936, ch. 881, § 10(b) (1st sentence), as 

added June 30, 1952, ch. 530, title III, § 301, 

66 Stat. 308; Pub. L. 104–106, div. D, title 

XLIII, § 4321(f)(2), Feb. 10, 1996, 110 Stat. 

675. 

6507(b)–(f) ........... 41:39. June 30, 1936, ch. 881, § 5, 49 Stat. 2038. 

In subsection (d), the word ‘‘contumacy’’ is omitted as included in 

‘‘refuses or fails’’. The words ‘‘may bring an action to enforce the 

order’’ are substituted for ‘‘upon the application by’’ for consistency 

in the revised title and with other titles of the United States Code. 

The words ‘‘the United States District Court for the District of Columbia’’ in section 5 of the Act of June 30, 1936 (which were substituted for ‘‘the Supreme Court of the District of Columbia’’ by section 32(b) of the Act of June 25, 1948 (ch. 646, 62 Stat. 991), as 

amended by section 127 of the Act of May 24, 1949 (ch. 139, 63 

Stat. 107), and which were were editorially omitted from 41:39) are 

omitted as included in ‘‘a district court of the United States’’ because of sections 88 and 132(a) of title 28, United States Code. The 

words ‘‘within the court’s judicial district’’’ are substituted for 

‘‘within the jurisdiction of which’’ for clarity and for consistency in 

the revised title and with other titles of the United States Code. 

The words ‘‘requiring the person to obey the order issued under 


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subsection (c)’’ are substituted for ‘‘requiring such person to appear 

before him or representative designated by him, to produce evidence if, as, and when so ordered, and to give testimony relating 

to the matter under investigation or in question’’ for clarity and to 

eliminate unnecessary words. 

In subsection (e), the duty to make findings of fact is restated as 

a duty of the Secretary (or the Secretary’s representative). The 

grammatical structure of the last sentence of 41:39 seems to suggest that the court, rather than the Secretary (or the Secretary’s 

representative), serves as fact finder. However, the provision taken 

as a whole indicates that it is the Secretary (or the Secretary’s representative) who serves as fact finder. It is the Secretary (or the 

Secretary’s representative) before whom hearings are held, witnesses testify, and evidence is produced. The court’s involvement is 

limited to compelling recalcitrant witnesses ‘‘to appear before him 

[the Secretary] or representative designated by him’’. The restatement clarifies the generally accepted understanding that the Secretary (or the Secretary’s representative) serves as fact finder (see, 

e.g., United States v. Sweet Briar, 92 F. Supp. 777, 780 (W.D.S.C. 

1950) (‘‘the Secretary ‘shall make findings of fact’ ’’); Ready-Mix 

Conrete Company v. United States, 158 F. Supp. 571, 578 (Cl. Ct. 

1958) (‘‘the findings of the Department of Labor’’)). 

SECTION 6508 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6508(a) ................. 41:40 (1st sentence). June 30, 1936, ch. 881, § 6, 49 Stat. 2038; June 

28, 1940, ch. 440, title I, § 13, 54 Stat. 681. 

6508(b) ................. 41:40 (2d sentence). 

6508(c) ................. 41:40 (3d sentence). 

6508(d) ................. 41:40 (last sentence less 

proviso). 

6508(e) ................. 41:40 (last sentence proviso). 

In subsection (a), the words ‘‘an agency of the United States’’ are 

substituted for ‘‘the contracting agency or department’’ for consistency in the chapter. Commas are inserted after ‘‘exceptions’’ and 

‘‘otherwise’’ to clarify that the words ‘‘when justice or the public interest will be served’’ apply to exceptions in ‘‘specific cases’’ as well 

as ‘‘otherwise’’. The word ‘‘thereby’’ is omitted as unnecessary. 

In subsection (b), the words ‘‘an agency of the United States’’ are 

substituted for ‘‘the contracting agency’’, and the words ‘‘minimum 

wages’’ are substituted for ‘‘minimum rates of pay’’, for consistency 

in the chapter. 

In subsection (c), the word ‘‘rules’’ is omitted as included in ‘‘regulations’’. The words ‘‘as hereinbefore described’’ are omitted as unnecessary. The words ‘‘minimum wages’’ are substituted for ‘‘minimum rates of pay’’ for consistency in the chapter. 

In subsection (d), the words ‘‘received by any employee affected’’

are omitted as unnecessary. 

In subsection (e), the words ‘‘or all’’ are omitted as unnecessary. 


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SECTION 6509 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6509(a) ................. 41:43a(a). June 30, 1936, ch. 881, § 10(a), (b) (last sentence), (c), as added June 30, 1952, ch. 530, 

title III, § 301, 66 Stat. 308; Pub. L. 103–355, 

title VII, § 7201(2), (3), Oct. 13, 1994, 108 

Stat. 3378. 

6509(b) ................. 41:43a(c). 

6509(c) ................. 41:43a(b) (last sentence). 

Subsection (a) is substituted for ‘‘Notwithstanding any provision 

of section 4 of the Administrative Procedure Act, such Act shall be 

applicable in the administration of sections 1 to 5 and 7 to 9 of this 

Act’’ in section 10 of the Act of June 30, 1936 (ch. 881), for consistency in the revised title and because of section 7(b) of Public Law 

89–554 (5 U.S.C. note prec. 101). 

In subsection (c), the words ‘‘has the right of judicial review’’ are 

substituted for ‘‘Review . . . may be had’’ for consistency with subsection (b) and with section 6510(b) of the revised title and because 

the review provided for in chapter 7 of title 5 is denominated as 

judicial review. The words ‘‘chapter 7 of title 5’’ are substituted for 

‘‘section 10 of the Administrative Procedure Act’’ on authority of 

section 7(b) of Public Law 89–554 (5 U.S.C. note prec. 101). 

SECTION 6510 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6510 ..................... 41:43b. June 30, 1936, ch. 881, § 11, as added Pub. L. 

103–355, title VII, § 7201(4), Oct. 13, 1994, 

108 Stat. 3378; Pub. L. 104–106, div. D, title 

XLIII, § 4321(f)(1)(A), Feb. 10, 1996, 110 Stat. 

675. 

In subsection (a), the words ‘‘an agency of the United States’’ are 

substituted for ‘‘any executive department, independent establishment, or other agency or instrumentality of the United States, or 

by the District of Columbia, or by any corporation all the stock of 

which is beneficially owned by the United States’’ because of the 

definition in section 6501 of the revised title. 

SECTION 6511 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6511 ..................... 41:42. June 30, 1936, ch. 881, § 8, 49 Stat. 2039. 

Paragraph (1) is substituted for ‘‘Title III of the act entitled ‘An 

Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other 

purposes’, approved May 3, 1933 (commonly known as the Buy 

American Act)’’ for consistency in the revised title and to correct an 

error in the source, which incorrectly gives May 3, 1933, rather 

than March 3, 1933, as the date of approval. 

Paragraph (2) is substituted for ‘‘the Act entitled ‘An Act relating 

to the rate of wages for laborers and mechanics employed on public 

buildings of the United States and the District of Columbia by contractors and subcontractors, and for other purposes’, approved 

March 3, 1931 (commonly known as the Bacon-Davis Act), as 


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amended from time to time’’ because of section 5(c) of Public Law 

107–217 (40 U.S.C. note prec. 101) and for consistency with title 

40. 

The words ‘‘the labor provisions of Title II of the National Industrial Recovery Act, approved June 16, 1933, as extended’’ are omitted as obsolete because of section 201 of the Act of June 21, 1938 

(ch. 554, 52 Stat. 816), as amended by the Acts of June 27, 1940 

(ch. 437, 54 Stat. 633), April 5, 1941 (ch. 40, 55 Stat. 110), and 

June 27, 1942 (ch. 450, 56 Stat. 410). 

The words ‘‘or [the labor provisions] of section 7 of the Emergency Relief Appropriation Act, approved April 8, 1935’’ are omitted 

as obsolete. The intended reference was probably to section 7 of the 

Emergency Relief Appropriation Act of 1935 (49 Stat. 118). Section 

7 of the Emergency Relief Appropriation Act of 1935 provided that 

the President shall require certain rates of pay for persons engaged 

in carrying out projects that were financed by amounts being appropriated in that Act. 

Paragraph (3) is substituted for ‘‘the Act entitled ‘An Act to provide for the diversification of employment of Federal prisoners, for 

their training and schooling in trades and occupations, and for 

other purposes’, approved May 27, 1930, as amended and supplemented by the Act approved June 23, 1934’’ for consistency with 

title 18. The Act of May 27, 1930 (ch. 340, 46 Stat. 391) and the 

Act of June 23, 1934 (ch. 736, 48 Stat. 1211), which were classified 

to sections 744a to 744n of former title 18, were substantially repealed and were replaced by chapter 307 and section 4162 of title 

18 in the codification of title 18 by the Act of June 25, 1948 (ch. 

645, 62 Stat. 683). Subsequently, section 4162 of title 18 was repealed by section 218(a)(4) of Public Law 98–473 (98 Stat. 2027). 

CHAPTER 67—SERVICE CONTRACT LABOR STANDARDS 

Sec. 

6701. Definitions. 

6702. Contracts to which this chapter applies. 

6703. Required contract terms. 

6704. Limitation on minimum wage. 

6705. Violations. 

6706. Three-year prohibition on new contracts in case of violation. 

6707. Enforcement and administration of chapter. 

SECTION 6701 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6701 ..................... 41:357. Pub. L. 89–286, § 8, Oct. 22, 1965, 79 Stat. 

1036; Pub. L. 93–57, § 1, July 6, 1973, 87 

Stat. 140; Pub. L. 94–489, § 3, Oct. 13, 1976, 

90 Stat. 2358. 

In paragraph (3), the word ‘‘individual’’ is substituted for ‘‘person’’ because of the definition of ‘‘person’’ in 1:1. The words ‘‘contract made by the Federal Government’’ are substituted for ‘‘contract entered into by the United States’’ for consistency in the revised title. The words ‘‘as of July 30, 1976, and any subsequent revision of those regulations’’ are omitted as obsolete. 

In paragraph (4)(A), the words ‘‘the outer Continental Shelf’’ are 

substituted for ‘‘Outer Continental Shelf lands’’ for consistency with 

the definition in 43:1331 and for consistency with the more comVerDate Aug 31 2005 04:03 Sep 16, 2006 Jkt 049006 PO 00000 Frm 00070 Fmt 6659 Sfmt 6601 E:\HR\OC\HR663.XXX HR663

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mon usage generally found in subchapter III of chapter 29 of title 

43. The words ‘‘Eniwetok Atoll, Kwajalein Atoll’’ are omitted because they are part of the Marshall Islands and therefore no longer 

part of the United States. The words ‘‘Canton Island’’ are omitted 

because it is part of Kiribati and therefore no longer part of the 

United States. 

SECTION 6702 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6702(a) ................. 41:351(a) (words before 

par. (1) related to applicability). 

Pub. L. 89–286, § 2(a) (words before par. (1) related to applicability), Oct. 22, 1965, 79 Stat. 

1034; Pub. L. 94–489, § 1(a), Oct. 13, 1976, 90 

Stat. 2358. 

6702(b) ................. 41:356. Pub. L. 89–286, § 7, Oct. 22, 1965, 79 Stat. 

1035. 

In subsection (b)(2), the words ‘‘the Walsh-Healey Public Contracts Act (49 Stat. 2036)’’, which appear in section 7(2) of Public 

Law 89–286 (79 Stat. 1036), are treated as a reference to the Act 

of June 30, 1936 (ch. 881, 49 Stat. 2036), which was known as the 

Walsh-Healey Act and which was subsequently designated as the 

Walsh-Healey Act by section 12 of the Act of June 30, 1936, which 

was added by section 10005(f)(5) of Public Law 103–355 (108 Stat. 

3409). 

In subsection (b)(7), the words ‘‘United States Postal Service’’ are 

substituted for ‘‘Post Office Department’’ because of sections 4(a) 

and 6(o) of the Postal Reorganization Act (Public Law 91–375, 84 

Stat. 773, 783, 39 U.S.C. note prec. 101, 201 note). 

SECTION 6703 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6703 ..................... 41:351(a) (words before 

par. (1) related to required contract terms), 

(1)–(5). 

Pub. L. 89–286, § 2(a) (words before par. (1) related to required contract terms), (1)–(5), Oct. 

22, 1965, 79 Stat. 1034; Pub. L. 92–473, §§ 1, 

2, Oct. 9, 1972, 86 Stat. 789; Pub. L. 94–489, 

§ 2, Oct. 13, 1976, 90 Stat. 2358. 

SECTION 6704 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6704 ..................... 41:351(b). Pub. L. 89–286, § 2(b), Oct. 22, 1965, 79 Stat. 

1034; Pub. L. 94–489, § 1(b), Oct. 13, 1976, 90 

Stat. 2358. 

SECTION 6705 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6705(a) ................. 41:352(a) (1st sentence). Pub. L. 89–286, §§ 3, 5(b), Oct. 22, 1965, 79 

Stat. 1035. 

6705(b)(1) ............. 41:352(a) (2d–last sentences). 

6705(b)(2) ............. 41:354(b) 

6705(c) ................. 41:352(c). 

6705(d) ................. 41:352(b). 


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In subsection (c), the words ‘‘to other actions in accordance with 

this section’’ are added for clarity. 

SECTION 6706 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6706(a) ................. 41:354(a) (1st sentence). Pub. L. 89–286, § 5(a) (1st sentence), Oct. 22, 

1965, 79 Stat. 1035. 

6706(b) ................. 41:354(a) (2d–last sentences). Pub. L. 89–286, § 5(a) (2d–last sentences), Oct. 

22, 1965, 79 Stat. 1035; Pub. L. 92–473, § 4, 

Oct. 9, 1972, 86 Stat. 790. 

In subsection (b), the word ‘‘entity’’ is substituted for ‘‘firm, corporation, partnership, or association’’ to use a single broad term 

clarifying that the prohibition applies to any kind of organization 

in which the person or firm has a substantial interest. The words 

‘‘containing the name of such persons or firms’’ are omitted as unnecessary. The word ‘‘person’’ is substituted for ‘‘individual’’ for consistency in the subsection. 

SECTION 6707 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6707(a)–(d) ........... 41:353. Pub. L. 89–286, § 4, Oct. 22, 1965, 79 Stat. 

1035; Pub. L. 92–473, § 3, Oct. 9, 1972, 86 

Stat. 789. 

6707(e) ................. 41:355. Pub. L. 89–286, § 6, Oct. 22, 1965, 79 Stat. 

1035. 

6707(f) .................. 41:358. Pub. L. 89–286, § 10, as added Pub. L. 92–473, 

§ 5, Oct. 9, 1972, 86 Stat. 790; Pub. L. 94–

273, § 29, Apr. 21, 1976, 90 Stat. 380. 

In subsection (e), the words ‘‘the definition of ‘regular rate’ under 

section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 

207(e))’’ are substituted for ‘‘the regular rate under the Fair Labor 

Standards Act by provisions of section 7(d) thereof ’’ for clarity, to 

correct the reference to ‘‘the Fair Labor Standards Act’’ in accordance with section 1 of the Fair Labor Standards Act of 1938 

(29:201), which provided the short title for the Act, and to correct 

the reference to ‘‘section 7(d) thereof ’’ in accordance with section 

204(d)(1) of the Fair Labor Standards Amendments of 1966 (Public 

Law 89–601, 80 Stat. 836), which amended the Fair Labor Standards Act of 1938 by redesignating section 7(d) as 7(e). 

In subsection (f), the words ‘‘paragraphs (1) and (2) of section 2’’, 

which appear in section 10 of the Service Contract Act of 1965, as 

added by section 5 of Public Law 92–473 (86 Stat. 790), are treated 

as a reference to paragraphs (1) and (2) of section 2(a) of the Service Contract Act of 1965 to reflect the probable intent of Congress. 

The words ‘‘which are entered into during the applicable fiscal 

year’’, 41:358(1)–(4), and the words ‘‘On and after July 1, 1976’’ are 

omitted as obsolete. 

CHAPTER 69—CONTRACT DISPUTES 

Sec. 

6901. Definitions. 

6902. Applicability of chapter. 

6903. Decision by contracting officer. 

6904. Contractor’s right of appeal from decision by contracting officer. 


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6905. Agency boards. 

6906. Agency board procedures for accelerated and small claims. 

6907. Judicial review of agency board decisions. 

6908. Payment of claims. 

6909. Interest. 

SECTION 6901 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6901 ..................... 41:601. Pub. L. 95–563, § 2, Nov. 1, 1978, 92 Stat. 2383; 

Pub. L. 104–106, div. D, title XLIII, 

§ 4322(b)(5), Feb. 10, 1996, 110 Stat. 677. 

In paragraph (6)(C), the words ‘‘Government Accountability Office’’ are substituted for ‘‘General Accounting Office’’ because of section 8(b) of the GAO Human Capital Reform Act of 2004 (Public 

Law 108–271, 118 Stat. 814, 31 U.S.C. 702 note). 

In paragraph (6)(D), the words ‘‘section 9101(3) of title 31’’ are 

substituted for ‘‘section 846 of title 31’’ because of section 4(b) of 

Public Law 97–258 (31 U.S.C. note prec. 101). 

SECTION 6902 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6902(a)–(c) ........... 41:602. Pub. L. 95–563, §§ 3, 4, Nov. 1, 1978, 92 Stat. 

2383. 

6902(d) ................. 41:603. 

In subsection (c), the words ‘‘an agency head’’ are substituted for 

‘‘the head of the agency’’ for consistency with the defined term 

‘‘agency head’’ in section 6901 of the revised title. 

SECTION 6903 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6903(a)(1) ............. 41:605(a) (1st sentence 

related to submission). 

Pub. L. 95–563, §§ 5, 6(a) (1st, 2d, 5th–last sentences), (b), (c)(3), (5), Nov. 1, 1978, 92 Stat. 

2384, 2385. 

6903(a)(2) ............. 41:605(a) (1st sentence 

related to writing requirement). 

6903(a)(3) ............. 41:605(a) (2d sentence). 

6903(a)(4)(A) ........ 41:605(a) (3d sentence). Pub. L. 95–563, § 6(a) (3d, 4th sentences), Nov. 

1, 1978, as added Pub. L. 103–355, title II, 

§ 2351(a)(1), Oct. 13, 1994, 108 Stat. 3322, 

amended Pub. L. 104–106, div. D, title XLIII, 

§ 4321(a)(6), Feb. 10, 1996, 110 Stat. 671. 

6903(a)(4)(B) ........ 41:605(a) (4th sentence). 

6903(a)(5) ............. 41:605(a) (8th sentence). 

6903(b)(1) ............. 41:605(c)(1) (last sentence). Pub. L. 95–563, § 6(c)(1) (last sentence), Nov. 1, 

1978, 92 Stat. 2385; Pub. L. 102–572, title IX, 

§ 907(a)(1)(A), Oct. 29, 1992, 106 Stat. 4518; 

Pub. L. 103–355, title II, § 2351(b), Oct. 13, 

1994, 108 Stat. 3322. 

6903(b)(2) ............. 41:605(c)(7). Pub. L. 95–563, § 6(c)(6), (7), as added Pub. L. 

102–572, title IX, § 907(a)(1)(B), Oct. 29, 

1992, 106 Stat. 4518. 

6903(b)(3) ............. 41:605(c)(6). 

6903(c)(1) ............. 41:605(a) (last sentence). 

6903(c)(2) ............. 41:604. 

6903(d) ................. 41:605(a) (5th sentence). 

6903(e) ................. 41:605(a) (6th, 7th sentences). 


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SECTION 6903—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6903(f)(1) ............. 41:605(c)(1) (1st sentence). Pub. L. 95–563, § 6(c)(1) (1st sentence), (2), Nov. 

1, 1978, 92 Stat. 2385; Pub. L. 103–355, title 

II, § 2351(b), Oct. 13, 1994, 108 Stat. 3322. 

6903(f)(2) ............. 41:605(c)(2). 

6903(f)(3) ............. 41:605(c)(3). 

6903(f)(4) ............. 41:605(c)(4). Pub. L. 95–563, § 6(c)(4), Nov. 1, 1978, 92 Stat. 

2385; Pub. L. 103–355, title II, § 2351(e), Oct. 

13, 1994, 108 Stat. 3322. 

6903(f)(5) ............. 41:605(c)(5). 

6903(g) ................. 41:605(b). 

6903(h)(1) ............ 41:605(d) (1st, last sentences). Pub. L. 95–563, § 6(d) (1st, last sentences), as 

added Pub. L. 101–552, § 6(a), Nov. 15, 1990, 

104 Stat. 2745, 2746; Pub. L. 104–106, div. D, 

title XLIII, § 4322(b)(6), Feb. 10, 1996, 110 

Stat. 677; Pub. L. 105–85, div. A, title X, 

§ 1073(g)(3), Nov. 18, 1997, 111 Stat. 1906. 

6903(h)(2) ............ 41:605(d) (2d sentence). Pub. L. 95–563, § 6(d) (2d sentence), as added 

Pub. L. 101–552, § 6(a), Nov. 15, 1990, 104 

Stat. 2745; Pub. L. 104–320, § 6(1), Oct. 19, 

1996, 110 Stat. 3871. 

6903(h)(3)(A) ....... 41:605(e) (1st sentence). Pub. L. 95–563, § 6(e), as added Pub. L. 101–

552, § 6(a), Nov. 15, 1990, 104 Stat. 2746; 

Pub. L. 103–355, title II, § 2352, Oct. 13, 

1994, 108 Stat. 3322; Pub. L. 104–106, div. D, 

title XLIII, §§ 4321(a)(7), 4322(b)(6), Feb. 10, 

1996, 110 Stat. 671, 677; Pub. L. 104–320, 

§ 6(2), Oct. 19, 1996, 110 Stat. 3871; Pub. L. 

105–85, div. A, title X, § 1073(g)(3), Nov. 18, 

1997, 111 Stat. 1906. 

6903(h)(3)(B) ....... 41:605(e) (last sentence). 

In subsection (b)(1)(D) and (2), the word ‘‘duly’’ is omitted as unnecessary. 

In subsection (b)(3), the words ‘‘of contract appeals’’ are omitted 

as unnecessary because of the definition of ‘‘agency board’’ in section 6901 of the revised title. 

In subsection (c)(2), the words ‘‘this subsection’’, which appear in 

section 5 of the Contract Disputes Act of 1978 (Pub. L. 95–563, 92 

Stat. 2384), and which were probably intended to mean ‘‘this section’’, are translated as ‘‘this paragraph’’ in accordance with the 

probable intent of Congress. 

In subsection (f)(5), the words ‘‘the commencement of’’ are omitted as unnecessary. The words ‘‘of the appeal or action’’ are substituted for ‘‘in the event an appeal or suit is so commenced in the 

absence of a prior decision by the contracting officer’’ to eliminate 

unnecessary words. 

SECTION 6904 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6904(a) ................. 41:606. Pub. L. 95–563, § 7, Nov. 1, 1978, 92 Stat. 2385. 

6904(b) ................. 41:609(a). Pub. L. 95–563, § 10(a), Nov. 1, 1978, 92 Stat. 

2388; Pub. L. 97–164, title I, § 161(10), Apr. 

2, 1982, 96 Stat. 49. 

In subsection (a), the words ‘‘of contract appeals’’ are omitted as 

unnecessary because of the definition of ‘‘agency board’’ in section 

6901 of the revised title. 


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In subsection (b)(1), the words ‘‘United States Court of Federal 

Claims’’ are substituted for ‘‘United States Claims Court’’ because 

of section 902(b)(1) of the Federal Courts Administration Act of 

1992 (Pub. L. 102–572, 106 Stat. 4516, 28 U.S.C. 171 note). 

SECTION 6905 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6905(a)(1), (2) ...... 41:607(a). Pub. L. 95–563, §§ 8(a), (c), (e), (h), 11, Nov. 1, 

1978, 92 Stat. 2385, 2386, 2387, 2388. 

6905(a)(3) ............. 41:607(h). 

6905(b) ................. 41:607(b). Pub. L. 95–563, § 8(b), Nov. 1, 1978, 92 Stat. 

2385; Pub. L. 101–509, title V, § 529 [title I, 

§ 104(d)(4)], Nov. 5, 1990, 104 Stat. 1447. 

6905(c) ................. 41:607(c). 

6905(d) ................. 41:607(d). Pub. L. 95–563, § 8(d), Nov. 1, 1978, 92 Stat. 

2386; Pub. L. 97–164, title I, § 160(a)(15), 

Apr. 2, 1982, 96 Stat. 48. 

6905(e) ................. 41:610. 

6905(f) .................. 41:607(e). 

In subsection (a)(2), the words ‘‘an agency board of contract appeals’’ are substituted for ‘‘a board of contract appeals’’ for consistency in the subsection and with the definition of ‘‘agency board’’ in 

section 6901 of the revised title. 

In subsection (a)(3), the words ‘‘criteria for’’ are omitted as unnecessary. The words ‘‘the agency board established by the Tennessee Valley Authority’’ are substituted for ‘‘a board established 

by the Tennessee Valley Authority’’ for consistency in the section 

and with the definition of ‘‘agency board’’ in section 6901 of the revised title. 

In subsection (b)(1), the words ‘‘administrative law judges’’ are 

substituted for ‘‘hearing examiners’’ because of section 3 of Public 

Law 95–251 (5 U.S.C. 3105 note). The words ‘‘Full-time members 

of agency boards serving as such on the effective date of this chapter shall be considered qualified’’ are omitted as obsolete. 

In subsection (b)(2), the words ‘‘of contract appeals’’ are omitted 

as unnecessary because of the definition of ‘‘agency board’’ in section 6901 of the revised title. 

In subsection (c), the words ‘‘any appeals’’ are substituted for 

‘‘the case’’ for consistency in the subsection. 

In subsection (d)(1)(B), the words ‘‘pursuant to subsection (c)’’ are 

added to clarify that the exclusion of the Tennessee Valley Authority from inter-agency arrangements under subsection (c) is not rendered moot by the grant of jurisdiction in subsection (d). 

In subsection (d)(2), the words ‘‘United States Court of Federal 

Claims’’ are substituted for ‘‘United States Claims Court’’ because 

of section 902(b)(1) of the Federal Courts Administration Act of 

1992 (Pub. L. 102–572, 106 Stat. 4516, 28 U.S.C. 171 note). 

In subsection (e), the words ‘‘agency board’’ are substituted for 

‘‘agency board of contract appeals’’ and the words ‘‘agency board of 

the Tennessee Valley Authority’’ are substituted for ‘‘board of contract appeals of the Tennessee Valley Authority’’ for consistency 

with the definition of ‘‘agency board’’ in section 6901 of the revised 

title. 


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SECTION 6906 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6906(a) ................. 41:607(f). Pub. L. 95–563, § 8(f), Nov. 1, 1978, 92 Stat. 

2386; Pub. L. 103–355, title II, § 2351(c), Oct. 

13, 1994, 108 Stat. 3322. 

6906(b) ................. 41:608. Pub. L. 95–563, § 9, Nov. 1, 1978, 92 Stat. 2387; 

Pub. L. 103–355, title II, § 2351(d), Oct. 13, 

1994, 108 Stat. 3322. 

In subsection (a), the word ‘‘only’’ is omitted for consistency with 

a similar provision in 41:608(a) and because the word ‘‘only’’ is redundant with the word ‘‘sole’’. 

In subsection (b)(6), the words ‘‘from time to time, may review’’

are substituted for ‘‘is authorized to review at least every three 

years’’ because the source law, while effectively granting the Administrator authority to conduct the reviews, does not require the 

Administrator to conduct any reviews, and does not restrict the 

number of reviews the Administrator may conduct during any time 

period. The words ‘‘beginning with the third year after November 

1, 1978’’ are omitted as obsolete. The words ‘‘the dollar amount 

specified in paragraph (1)’’ are substituted for ‘‘the dollar amount 

defined in subsection (a) of this section as a small claim’’ to eliminate unnecessary words and because 41:608(a), restated as paragraph (1), does not explicitly provide a definition for the term 

‘‘small claim’’. 

SECTION 6907 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6907(a) ................. 41:607(g). Pub. L. 95–563, § 8(g), Nov. 1, 1978, 92 Stat. 

2387; Pub. L. 97–164, title I, § 156, Apr. 2, 

1982, 96 Stat. 47; Pub. L. 101–552, § 6(b), 

Nov. 15, 1990, 104 Stat. 2746. 

6907(b) ................. 41:609(b). Pub. L. 95–563, § 10(b), (e), Nov. 1, 1978, 92 

Stat. 2388. 

6907(c) ................. 41:609(c). Pub. L. 95–563, § 10(c), Nov. 1, 1978, 92 Stat. 

2388; Pub. L. 97–164, title I, § 157, Apr. 2, 

1982, 96 Stat. 47. 

6907(d) ................. 41:609(d). Pub. L. 95–563, § 10(d), Nov. 1, 1978, 92 Stat. 

2388; Pub. L. 97–164, title I, § 160(a)(15), 

Apr. 2, 1982, 96 Stat. 48. 

6907(e) ................. 41:609(e). 

6907(f) .................. 41:609(f). Pub. L. 95–563, § 10(f), as added Pub. L. 103–

355, title II, § 2354, Oct. 13, 1994, 108 Stat. 

3323. 

In subsection (a)(1) (matter before subparagraph (A)), the words 

‘‘of contract appeals’’ are omitted as unnecessary because of the definition of ‘‘agency board’’ in section 6901 of the revised title. 

In subsection (a)(1)(B), the words ‘‘may transmit’’ are substituted 

for ‘‘transmits’’ to correct the grammatical structure of the provision in accordance with the probable intent of Congress. The words 

‘‘the decision’’ are substituted for ‘‘the decision of the board of contract appeals’’ and for ‘‘the board’s decision’’ to eliminate unnecessary words and for consistency with 41:607(g)(1)(A). 

In subsection (a)(2) (matter before subparagraph (A)), the words 

‘‘agency board’’ are substituted for ‘‘the board of contract appeals’’


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to eliminate unnecessary words and for consistency with the definition of ‘‘agency board’’ in section 6901 of the revised title. 

In subsection (a)(2)(B), the words ‘‘in any case’’ are omitted as 

unnecessary. 

In subsection (d), the words ‘‘United States Court of Federal 

Claims’’ are substituted for ‘‘United States Claims Court’’ because 

of section 902(b)(1) of the Federal Courts Administration Act of 

1992 (Pub. L. 102–572, 106 Stat. 4516, 28 U.S.C. 171 note). 

In subsection (f)(1), (3), and (4), the words ‘‘agency board’’ are 

substituted for ‘‘board of contract appeals’’ to eliminate unnecessary 

words and for consistency with the definition of ‘‘agency board’’ in 

section 6901 of the revised title. 

In subsection (f)(1), the words ‘‘under consideration’’ are substituted for ‘‘at issue’’ to avoid potential confusion with the words 

‘‘issue described in paragraph (2)’’. 

SECTION 6908 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6908 ..................... 41:612. Pub. L. 95–563, § 13, Nov. 1, 1978, 92 Stat. 

2389; Pub. L. 104–106, div. D, title XLIII, 

§ 4322(b)(7), Feb. 10, 1996, 110 Stat. 677. 

In subsection (b), the words ‘‘of contract appeals’’ are omitted as 

unnecessary because of the definition of ‘‘agency board’’ in section 

6901 of the revised title. 

In subsection (d)(2), the words ‘‘agency board of the Tennessee 

Valley Authority’’ are substituted for ‘‘board of contract appeals for 

the Tennessee Valley Authority’’ for consistency with the definition 

of ‘‘agency board’’ in section 6901 of the revised title. 

SECTION 6909 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6909(a)(1) ............. 41:611 (1st sentence). Pub. L. 95–563, § 12, Nov. 1, 1978, 92 Stat. 

2389. 

6909(a)(2) ............. 41:611 note. Pub. L. 102–572, title IX, § 907(a)(3), Oct. 29, 

1992, 106 Stat. 4518. 

6909(b) ................. 41:611 (last sentence). 

In subsection (a)(2), the words ‘‘on or after the date of the enactment of this Act’’, ‘‘the later of ’’, and ‘‘or the date of the enactment 

of this Act’’ are omitted as obsolete. 

Subsection (b) is substituted for ‘‘The interest provided for in this 

section shall be paid at the rate established by the Secretary of the 

Treasury pursuant to Public Law 92–41 (85 Stat. 97) for the Renegotiation Board’’ to eliminate obsolete language and to codify the 

criteria under which the interest rate is computed. Section 2(a)(3) 

of the Act of July 1, 1971 (Pub. L. 92–41, 85 Stat. 97), amended 

section 105(b)(2) of the Renegotiation Act of 1951 (Mar. 23, 1951, 

ch. 15, 65 Stat. 13) by adding provisions substantially similar to 

those enacted here. However, the Renegotiation Act of 1951 (Mar. 

23, 1951, ch. 15, 65 Stat. 7) was omitted from the Code pursuant 

to section 102(c)(1) of the Act (65 Stat. 8), amended several times, 

the last being Public Law 94–185 (89 Stat. 1061), which provided 

that most provisions of that Act do not apply to receipts and accruals attributable to contract performance after September 30, 1976, 


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and in view of the termination of the Renegotiation Board and the 

transfer of property and records of the Board to the Administrator 

of the General Services Administration on March 31, 1979, pursuant to Public Law 95–431 (92 Stat. 1043). Although the Renegotiation Board is no longer in existence, Federal agencies, including 

the General Services Administration, are required to use interest 

rates that are computed under the criteria set out in this subsection. See 31:3902(a) and the website of the Bureau of the Public 

Debt, available at http://www.publicdebt.treas.gov/opd/ 

opdprmt2.htm. For an example of publication of rates under the 

criteria enacted here, see Federal Register, volume 67, number 247, 

page 78566, December 24, 2002. 

Subtitle III—Miscellaneous 

Chapter Sec. 

81. Drug-Free Workplace ................................................................................. 8101 

83. Buy American ............................................................................................. 8301 

85. Committee for Purchase From People Who Are Blind or Severely Disabled ........................................................................................................ 8501 

87. Kickbacks .................................................................................................... 8701 

CHAPTER 81—DRUG-FREE WORKPLACE 

Sec. 

8101. Definitions and construction. 

8102. Drug-free workplace requirements for Federal contractors. 

8103. Drug-free workplace requirements for Federal grant recipients. 

8104. Employee sanctions and remedies. 

8105. Waiver. 

8106. Regulations. 

SECTION 8101 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8101(a)(1) ............. 41:706(7). Pub. L. 100–690, title V, §§ 5157, 5158, Nov. 18, 

1988, 102 Stat. 4308. 

8101(a)(2) ............. 41:706(3). 

8101(a)(3) ............. 41:706(4). 

8101(a)(4) ............. 41:706(5). 

8101(a)(5) ............. 41:706(1). 

8101(a)(6) ............. 41:706(2). 

8101(a)(7) ............. 41:706(8). 

8101(a)(8) ............. 41:706(6). 

8101(b) ................. 41:707. 

SECTION 8102 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8102 ..................... 41:701. Pub. L. 100–690, title V, § 5152, Nov. 18, 1988, 

102 Stat. 4304; Pub. L. 103–355, title IV, 

§ 4104(d), title VIII, § 8301(f), Oct. 13, 1994, 

108 Stat. 3342, 3397; Pub. L. 104–106, div. D, 

title XLIII, §§ 4301(a)(3), 4321(i)(13), Feb. 10, 

1996, 110 Stat. 656, 677. 


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SECTION 8103 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8103 ..................... 41:702. Pub. L. 100–690, title V, § 5153, Nov. 18, 1988, 

102 Stat. 4306; Pub. L. 105–85, div. A, title 

VIII, § 809, Nov. 18, 1997, 111 Stat. 1838. 

SECTION 8104 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8104 ..................... 41:703. Pub. L. 100–690, title V, § 5154, Nov. 18, 1988, 

102 Stat. 4307. 

SECTION 8105 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8105 ..................... 41:704. Pub. L. 100–690, title V, § 5155, Nov. 18, 1988, 

102 Stat. 4307. 

SECTION 8106 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8106 ..................... 41:705. Pub. L. 100–690, title V, § 5156, Nov. 18, 1988, 

102 Stat. 4308. 

The words ‘‘Not later than 90 days after November 18, 1988, the’’

are omitted as obsolete. 

CHAPTER 83—BUY AMERICAN 

Sec. 

8301. Definitions. 

8302. American materials required for public use. 

8303. Contracts for public works. 

8304. Waiver rescission. 

8305. Annual report. 

SECTION 8301 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8301 ..................... 41:10c. Mar. 3, 1933, ch. 212, title III, § 1, 47 Stat. 

1520; Pub. L. 86–70, § 43, June 25, 1959, 73 

Stat. 151; Pub. L. 86–624, § 28, July 12, 1960, 

74 Stat. 419; Pub. L. 100–418, title VII, 

§ 7005(a), Aug. 23, 1988, 102 Stat. 1552. 

In paragraph (1), the words ‘‘the Philippine Islands’’ are omitted 

because of Proclamation No. 2695 (22 U.S.C. 1394 note). The words 

‘‘the Canal Zone’’ are omitted because of the Panama Canal Treaty 

of 1977. 

In paragraph (2), the words ‘‘when used in a geographical sense’’

are omitted as unnecessary. 


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SECTION 8302 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8302 ..................... 41:10a. Mar. 3, 1933, ch. 212, title III, § 2, 47 Stat. 

1520; Pub. L. 100–418, title VII, § 7005(b), 

Aug. 23, 1988, 102 Stat. 1553; Pub. L. 103–

355, title IV, § 4301(b), Oct. 13, 1994, 108 

Stat. 3347. 

In subsection (a), the words ‘‘Notwithstanding any other provision of law’’ are omitted as unnecessary. 

SECTION 8303 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8303(a) ................. 41:10b(a) (words before 

‘‘except as provided’’). 

Mar. 3, 1933, ch. 212, title III, § 3, 47 Stat. 

1520; Pub. L. 100–418, title VII, § 7005(c), 

Aug. 23, 1988, 102 Stat. 1553. 

8303(b)(1) ............. 41:10b(a) (‘‘except as provided in section 10a of 

this title’’). 

8303(b)(2) ............. 41:10b(a) (proviso). 

8303(b)(3) ............. 41:10d. Oct. 29, 1949, ch. 787, title VI, § 633, 63 Stat. 

1024; Pub. L. 100–418, title VII, § 7005(d), 

Aug. 23, 1988, 102 Stat. 1553. 

8303(c) ................. 41:10b(b). 

In subsection (a), before paragraph (1), the words ‘‘growing out 

of an appropriation heretofore made or hereafter to be made’’ are 

omitted as unnecessary. 

Subsection (b)(1) is substituted for ‘‘except as provided in section 

10a of this title’’ for clarity. 

In subsection (b)(3), the words ‘‘In order to clarify the original intent of Congress, hereafter, section 10a of this title’’ are omitted as 

unnecessary. 

In subsection (c), the words ‘‘in the United States or elsewhere’’

are omitted as unnecessary. 

SECTION 8304 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8304(a) ................. 41:10b–2(a)(2), (b). Pub. L. 103–160, div. A, title VIII, § 849(c), (d), 

Nov. 30, 1993, 107 Stat. 1725. 

8304(b) ................. 41:10b–2(a)(1). 

In subsection (a), the text of 41:10b–2(b) is omitted as unnecessary. 

SECTION 8305 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8305 ..................... 41:10b–3. Pub. L. 104–201, div. A, title VIII, § 827, Sept. 

23, 1996, 110 Stat. 2611; Pub. L. 105–85, div. 

A, title VIII, § 846, Nov. 18, 1997, 111 Stat. 

1845; Pub. L. 105–261, div. A, title VIII, 

§ 812, Oct. 17, 1998, 112 Stat. 2086. 


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CHAPTER 85—COMMITTEE FOR PURCHASE FROM 

PEOPLE WHO ARE BLIND OR SEVERELY DISABLED 

Sec. 

8501. Definitions. 

8502. Committee for Purchase From People Who Are Blind or Severely Disabled. 

8503. Duties and powers of the Committee. 

8504. Procurement requirements for the Federal Government. 

8505. Audit. 

8506. Authorization of appropriations. 

SECTION 8501 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8501(1) ................. 41:48b(1). June 25, 1938, ch. 697, § 5, 52 Stat. 1196; Pub. 

L. 92–28, § 1, June 23, 1971, 85 Stat. 81; Pub. 

L. 93–358, § 1(3), July 25, 1974, 88 Stat. 393; 

Pub. L. 94–273, § 3(22), Apr. 21, 1976, 90 

Stat. 377. 

8501(2) ................. 41:46(a) (words in parentheses before par. (1)). June 25, 1938, ch. 697, § 1(a) (words in parentheses before par. (1)), 52 Stat. 1196; Pub. L. 

92–28, § 1, June 23, 1971, 85 Stat. 77. 

8501(3) ................. 41:48b(5). 

8501(4) ................. 41:48b(7). 

8501(5) ................. 41:48b(2). 

8501(6) ................. 41:48b(4). 

8501(7) ................. 41:48b(3). 

8501(8) ................. 41:48b(2). 

8501(9) ................. 41:48b(8). 

In this chapter, the word ‘‘disabled’’ is substituted for ‘‘handicapped’’ for consistency with the name of the Committee. The word 

‘‘product’’ is substituted for ‘‘commodity’’ to reflect the current 

usage of the items produced in the Committee’s program. 

In this section, the text of 41:48b(6) is omitted as unnecessary. 

In paragraph (9), the words ‘‘the Northern Mariana Islands’’ are 

substituted for ‘‘the Trust Territory of the Pacific Islands’’ because 

the Trust Territory of the Pacific Islands terminated. See 48 U.S.C. 

note prec. 1681. However, section 502(a)(2) of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America (48 U.S.C. 1801 note) 

provided that laws in existence on the effective date of section 502 

that were applicable to Guam and that were of general application 

to the several States would apply to the Northern Mariana Islands. 

The Marshall Islands, Palau, and the Federated States of Micronesia are not included because although they were part of the 

Trust Territory of the Pacific Islands, they are independent entities 

and not part of the United States. 

SECTION 8502 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8502(a), (b) .......... 41:46(a) (less words in 

parentheses before 

par. (1)). 

June 25, 1938, ch. 697, § 1 (less (a) (words in 

parentheses before par. (1))), 52 Stat. 1196; 

Pub. L. 92–28, § 1, June 23, 1971, 85 Stat. 77; 

Pub. L. 93–358, § 1(1), (2), July 25, 1974, 88 

Stat. 392; Pub. L. 94–273, § 8(2), Apr. 21, 

1976, 90 Stat. 378; Pub. L. 102–54, § 13(p), 

June 13, 1991, 105 Stat. 278; Pub. L. 102–

569, title IX, § 911(a), Oct. 29, 1992, 106 Stat. 

4486; Pub. L. 103–73, title III, § 301, Aug. 11, 

1993, 107 Stat. 736. 


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SECTION 8502—CONTINUED

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8502(c) ................. 41:46(d)(1), (2), (4). 

8502(d) ................. 41:46(c). 

8502(e)(1) ............. 41:46(b). 

8502(e)(2) ............. 41:46(d)(3). 

8502(f) .................. 41:46(e). 

8502(g) ................. 41:46(f). 

8502(h) ................. 41:46(g). 

8502(i) .................. 41:46(h). 

8502(j) .................. 41:46(i). 

In subsection (b)(1)(F), the words ‘‘Department of Education’’ are 

substituted for ‘‘Department of Health and Human Services’’ in 

41:46(a)(1) to correct a mistake in the United States Code. In the 

amendment to the original provision by section 1 of Public Law 92–

28 (85 Stat. 77), an officer or employee of the Department of 

Health, Education, and Welfare was one of the members appointed 

to the Committee for Purchase From People Who Are Blind or Severely Disabled, because the Department, through the Rehabilitation Services Administration, had the major governmental function 

in the field of vocational rehabilitation for the blind and other severely handicapped and administered related vocational rehabilitation programs for individuals with disabilities. See House Report 

92–228. Under section 301(a)(4)(A) and (C) and (b)(3) of the Department of Education Organization Act (20:3441(a)(4)(A) and (C) and 

(b)(3)), the functions and offices of the Department and the functions of the Secretary of Health, Education, and Welfare and the 

Commissioner of Rehabilitation Services were transferred to the 

Department or Secretary of Education. Section 509 of the Act 

(20:3508) redesignated the Department and Secretary of Health, 

Education, and Welfare as the Department and Secretary of Health 

and Human Services, respectively, and provided that references to 

the Department and Secretary of Health, Education, and Welfare 

were deemed to be references to the Department or Secretary of 

Health and Human Services except to the extent a reference was 

to a function of the Department or Secretary of Education. The reference in 41:46(a)(1) was changed to ‘‘Department of Health and 

Human Services’’ but should have been changed to ‘‘Department of 

Education’’. Furthermore, the regulations of the Committee include 

the Department of Education in the list of members of the Committee. See 41 CFR 51–2.1. 

In subsection (c), the text of 41:46(d)(2) and (4) is omitted as obsolete. 

In subsection (f)(1), the reference to section 5376 of title 5 is substituted for the reference to grade GS–18 of the General Schedule 

because of section 529 [title I, § 101(c)(1)] of the Treasury, Postal 

Service and General Government Appropriations Act, 1991 (Public 

Law 101–509, 104 Stat. 1442, 5 U.S.C. 5376 note). The word ‘‘actual’’ is omitted as unnecessary. The words ‘‘A member is entitled 

to travel expenses, including a per diem allowance instead of subsistence, as provided under section 5703 of title 5’’ are substituted 

for 41:46(e)(3) to eliminate unnecessary words. The reference to 

section 5703 of title 5 is substituted for the reference to section 

5703(b) of title 5 because of the amendment to section 5703 by secVerDate Aug 31 2005 04:03 Sep 16, 2006 Jkt 049006 PO 00000 Frm 00082 Fmt 6659 Sfmt 6601 E:\HR\OC\HR663.XXX HR663

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tion 4 of the Travel Expense Amendments Act of 1975 (Public Law 

94–22, 89 Stat. 85). 

In subsection (g), the words ‘‘its duties and powers’’ are omitted 

as surplus. 

In subsection (g)(1), the reference to chapter 33 of title 5 is substituted for ‘‘the provisions of title 5 governing appointments in the 

competitive service’’ for clarity and for consistency with other titles 

of the United States Code. The words ‘‘relating to classification and 

General Schedule pay rates’’ are omitted as unnecessary. 

In subsection (j), the words ‘‘and to the Congress’’ are omitted 

pursuant to section 3003 of the Federal Reports Elimination and 

Sunset Act of 1995 (31 U.S.C. 1113 note). See, also, page 199 of 

House Document No. 103–7. 

SECTION 8503 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8503(a) ................. 41:47(a). June 25, 1938, ch. 697, § 2, 52 Stat. 1196; Pub. 

L. 92–28, § 1, June 23, 1971, 85 Stat. 79. 

8503(b) ................. 41:47(b). 

8503(c) ................. 41:47(c). 

8503(d) ................. 41:47(d). 

8503(e) ................. 41:47(e). 

In subsection (a), the text of 41:47(a)(1) (last sentence) is omitted 

as obsolete. The words ‘‘procurement list’’ are substituted for 

‘‘(hereafter in sections 46 to 48c of this title referred to as the ‘procurement list’)’’ to eliminate unnecessary words. 

In subsection (d)(2), the text of 41:47(d)(2)(B) is omitted as obsolete. 

SECTION 8504 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8504 ..................... 41:48. June 25, 1938, ch. 697, § 3, 52 Stat. 1196; Pub. 

L. 92–28, § 1, June 23, 1971, 85 Stat. 80. 

In subsection (a), the words ‘‘referred to in section 8503 of this 

title’’ are added for clarity because of the restatement of 41:47(a) 

in section 8503(a) of the revised title. 

In subsection (b), the words ‘‘for procurement’’ are omitted as unnecessary. 

SECTION 8505 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8505 ..................... 41:48a. June 25, 1938, ch. 697, § 4, 52 Stat. 1196; Pub. 

L. 92–28, § 1, June 23, 1971, 85 Stat. 81. 

In this section, before paragraph (1), the words ‘‘or any of his 

duly authorized representatives’’ are omitted because of 31:711(2). 

In paragraph (1), the words ‘‘central nonprofit’’ are added for clarity. 


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SECTION 8506 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8506 ..................... 41:48c. June 25, 1938, ch. 697, § 6, 52 Stat. 1196; Pub. 

L. 92–28, § 1, June 23, 1971, 85 Stat. 82; Pub. 

L. 93–76, July 30, 1973, 87 Stat. 176; Pub. L. 

93–358, § 1(4), July 25, 1974, 88 Stat. 393. 

The reference to the fiscal year ending June 30, 1974 is omitted 

as obsolete. 

CHAPTER 87—KICKBACKS 

Sec. 

8701. Definitions. 

8702. Prohibited conduct. 

8703. Contractor responsibilities. 

8704. Inspection authority. 

8705. Administrative offsets. 

8706. Civil actions. 

8707. Criminal penalties. 

SECTION 8701 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8701 ..................... 41:52. Mar. 8, 1946, ch. 80, § 2, 60 Stat. 37; Pub. L. 

86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 

99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3523. 

In this section, the text of 41:52(3) is omitted because of the definition of ‘‘person’’ in 1:1. 

In paragraph (2), the words ‘‘directly or indirectly’’ are omitted 

as unnecessary. 

SECTION 8702 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8702 ..................... 41:53. Mar. 8, 1946, ch. 80, § 3, 60 Stat. 37; Pub. L. 

86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 

99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3524. 

In paragraph (3), before subparagraph (A), the words ‘‘directly or 

indirectly’’ are omitted as unnecessary. 

SECTION 8703 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8703(a) ................. 41:57(a), (b). Mar. 8, 1946, ch. 80, § 7, 60 Stat. 37; Pub. L. 

86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 

99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3525; 

Pub. L. 103–355, title IV, § 4104(a), title VIII, 

§ 8301(c)(1), Oct. 13, 1994, 108 Stat. 3341, 

3397; Pub. L. 104–106, div. D, title XLIII, 

§ 4321(g), Feb. 10, 1996, 110 Stat. 675. 

8703(b) ................. 41:57(e). 

8703(c) ................. 41:57(c). 

8703(d) ................. 41:57(d). 

In subsection (c)(1), the words ‘‘Attorney General’’ are substituted 

for ‘‘Department of Justice’’ because of 28:503. 


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SECTION 8704 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8704 ..................... 41:58. Mar. 8, 1946, ch. 80, § 8, 60 Stat. 37; Pub. L. 

86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 

99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3525; 

Pub. L. 103–355, title VIII, § 8301(c)(2), Oct. 

13, 1994, 108 Stat. 3397. 

In subsection (a), the words ‘‘Comptroller General’’ are substituted for ‘‘General Accounting Office’’ because of 31:702. 

SECTION 8705 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8705(a) ................. 41:56(d). Mar. 8, 1946, ch. 80, § 6, 60 Stat. 37; Pub. L. 

86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 

99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3524. 

8705(b) ................. 41:56(a). 

8705(c) ................. 41:56(b). 

8705(d) ................. 41:56(c). 

SECTION 8706 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8706 ..................... 41:55. Mar. 8, 1946, ch. 80, § 5, 60 Stat. 37; Pub. L. 

86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 

99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3524. 

SECTION 8707 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

8707 ..................... 41:54. Mar. 8, 1946, ch. 80, § 4, 60 Stat. 37; Pub. L. 

86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 

99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3524. 

SECTION 4—CONFORMING AMENDMENT

Section 4 of the bill amends section 2410i(b)(1) of title 10, United 

States Code, to reflect the amendment of section 4(11) of the Office 

of Federal Procurement Policy Act (Public Law 93–400) by section 

4001 of the Federal Acquisition Streamlining Act of 1994 (Public 

Law 103–355, 108 Stat. 3338). 

SECTION 5—CONFORMING CROSS-REFERENCES

Section 5 of the bill makes conforming cross-references to titles 

of the United States Code that have been enacted into positive law 

and to the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.). 

These amendments are necessary because of the restatement of the 

source provisions in section 3. 

SECTION 6—TECHNICAL AMENDMENTS

Section 6 of the bill contains technical amendments that are necessary because of Public Law 109–163. 

Subsection (a) amends various sections of chapter 69 of title 41, 

as enacted by section 3 of the bill, on January 6, 2007, or the date 

of enactment of this Act, whichever is later. 


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Paragraph (1) amends section 6901 to reflect the provisions of 

section 847(d)(1) of Public Law 109–163 (119 Stat. 3393). 

Paragraph (2) amends section 6905 to reflect the provisions of 

section 847(a) and (d)(2) to (4) of Public Law 109–163 (119 Stat. 

3391, 3393). Section 847(d)(4) in part repeals section 8(h) of the 

Contract Disputes Act of 1978 (41 U.S.C. 607(h)). Section 847(d)(4) 

also repeals section 8(i) of the Contract Disputes Act of 1978, which 

previously was omitted from the United States Code because the 

provision was obsolete. 

SECTION 6905 

Revised Section Source (U.S. Code) Source (Statutes at Large) 

6905(a) ................. 41:607(a)(1), (b)(1). Pub. L. 95–563, § 8(a)(1), (b)(1), Nov. 1, 1978, 92 

Stat. 2385; Pub. L. 101–509, title V, § 529 

[title I, § 104(d)(4)], Nov. 5, 1990, 104 Stat. 

1447; Pub. L. 109–163, title VIII, § 847(d)(3), 

Jan. 6, 2006, 119 Stat. 3394. 

6905(b) ................. 41:438. Pub. L. 93–400, § 42, as added Pub. L. 109–163, 

title VIII, § 847(a), Jan. 6, 2006, 119 Stat. 

3391. 

6905(c) ................. 41:607(a)(2), (b)(2). Pub. L. 95–563, § 8(a)(2), (b)(2), Nov. 1, 1978, 92 

Stat. 2385, 2386. 

6905(d) ................. 41:607(c) (1st, 3d, last 

sentences). 

Pub. L. 95–563, § 8(c), Nov. 1, 1978, 92 Stat. 

2386; Pub. L. 109–163, title VIII, 

§ 847(d)(2)(B), Jan. 6, 2006, 119 Stat. 3394. 

6905(e)(1)(A), (B) 41:607(d) (1st, 2d sentences). Pub. L. 95–563, § 8(d), Nov. 1, 1978, 92 Stat. 

2386; Pub. L. 97–164, title I, § 160(a)(15), 

Apr. 2, 1982, 96 Stat. 48; Pub. L. 109–163, 

title VIII, § 847(d)(2)(A), Jan. 6, 2006, 119 

Stat. 3393. 

6905(e)(1)(C) ........ 41:607(c) (2d sentence). 

6905(e)(1)(D) ........ 41:607(d) (3d sentence). 

6905(e)(2) ............. 41:607(d) (last sentence). 

6905(f) .................. 41:610. Pub. L. 95–563, § 11, Nov. 1, 1978, 92 Stat. 

2388. 

6905(g) ................. 41:607(e). Pub. L. 95–563, § 8(e), Nov. 1, 1978, 92 Stat. 

2386. 

Paragraph (3) amends section 6907(a)(2) for clarity because of 

section 847(d)(1)(C) of Public Law 109–163 (119 Stat. 3393). 

Paragraph (4) amends section 6908(d)(2) for clarity because of 

section 847(d)(1)(C) of Public Law 109–163 (119 Stat. 3393). 

Subsection (b) amends various provisions to coordinate the 

amendments made by this bill with the prospective amendments 

made by section 847 of Public Law 109–163.. 

SECTION 7—TRANSITIONAL AND SAVINGS PROVISIONS

Section 7 of the bill contains transitional and savings provisions. 

SECTION 8—REPEALS

Section 8 of the bill repeals provisions replaced by the bill, along 

with unnecessary and obsolete provisions (see ‘‘Disposition Table’’

above). 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, the Committee notes that H.R. 5414 

makes no changes to existing law. 


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MARKUP TRANSCRIPT

BUSINESS MEETING 

WEDNESDAY, JULY 19, 2006 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON THE JUDICIARY, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:09 a.m., in Room 

2141, Rayburn House Office Building, the Honorable F. James Sensenbrenner, Jr. (Chairman of the Committee) presiding. 

Chairman SENSENBRENNER. The Committee will be in order. A 

working quorum is present. 

The Chair would like to state at this point that he hopes to be 

able to get through the bills on the agenda today because we have 

a limited number of session days left. We have to get these bills 

out in order to get them into queue for floor consideration. 

The order that the bills will be considered will be, first, H.R. 

5414, relating to public contracts; second, the Workplace Goods Job 

Growth and Competitiveness Act; third, the RICO bill; fourth, the 

Second Chance Act; and fifth, the Criminal Restitution Act. 

The staff is still working with Members to try to reach an agreement on the Criminal Restitution Act. If we can’t get to an agreement by the time we get to it, the Committee will adjourn and that 

will be on the top of the agenda next week. 

So having said that, pursuant to notice, I now call up the bill 

H.R. 5414, ‘‘To Enact Certain Laws Relating to Public Contracts as 

Title 41, United States Code, ‘Public Contracts,’ ’’ for purposes of 

markup and move its favorable recommendation to the House. 

Without objection, the bill will be considered as read and open 

for amendment at any point. 

[The bill, H.R. 5414, follows:] 


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I

109TH CONGRESS

2D SESSION H. R. 5414

To enact certain laws relating to public contracts as title 41, United States

Code, ‘‘Public Contracts’’.

IN THE HOUSE OF REPRESENTATIVES

MAY 17, 2006

Mr. SENSENBRENNER (for himself and Mr. CONYERS) introduced the

following bill; which was referred to the Committee on the Judiciary

A BILL

To enact certain laws relating to public contracts as title

41, United States Code, ‘‘Public Contracts’’.

1 Be it enacted by the Senate and House of Representatives of the United

2 States of America in Congress assembled,

3 SECTION 1. TABLE OF CONTENTS.

4 The table of contents for this Act is as follows:

Sec. 1. Table of contents.

Sec. 2. Purpose; conformity with original intent.

Sec. 3. Enactment of Title 41, United States Code.

Sec. 4. Conforming amendment.

Sec. 5. Conforming cross-references.

Sec. 6. Technical amendments.

Sec. 7. Transitional and savings provisions.

Sec. 8. Repeals.

5 SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT.

6 (a) PURPOSE.—The purpose of this Act is to enact certain laws relating

7 to public contracts as title 41, United States Code, ‘‘Public Contracts’’.

8 (b) CONFORMITY WITH ORIGINAL INTENT.—In the codification of laws

9 by this Act, the intent is to conform to the understood policy, intent, and

10 purpose of Congress in the original enactments, with such amendments and

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1 tions, in accordance with section 205(c)(1) of House Resolution No. 988,

2 93d Congress, as enacted into law by Public Law 93–554 (2 U.S.C.

3 285b(1)).

4 SEC. 3. ENACTMENT OF TITLE 41, UNITED STATES CODE.

5 Certain general and permanent laws of the United States, related to pub6 lic contracts, are revised, codified, and enacted as title 41, United States

7 Code, ‘‘Public Contracts’’, as follows:

8 TITLE 41—PUBLIC CONTRACTS

Subtitle Sec.

I. FEDERAL PROCUREMENT POLICY ................................................ 101

II. OTHER ADVERTISING AND CONTRACT PROVISIONS .......... 6101

III. MISCELLANEOUS .................................................................................... 8101

9 Subtitle I—Federal Procurement Policy

10 PART A—GENERAL

Chapter Sec.

1. Definitions ................................................................................................... 101

11 PART B—OFFICE OF FEDERAL PROCUREMENT POLICY

11. Establishment of Office and Authority and Functions of Administrator.1101

13. Acquisition Councils ................................................................................ 1301

15. Cost Accounting Standards ................................................................... 1501

17. Agency Responsibilities and Procedures ........................................ 1701

19. Simplified Acquisition Procedures .................................................... 1901

21. Restrictions on Obtaining and Disclosing Certain Information.2101

23. Miscellaneous ............................................................................................. 2301

12 PART C—PROCUREMENT

31. General .......................................................................................................... 3101

33. Planning and Solicitation ...................................................................... 3301

35. Truthful Cost and Pricing Data .......................................................... 3501

37. Awarding of Contracts ............................................................................ 3701

39. Specific Types of Contracts .................................................................. 3901

41. Task and Delivery Order Contracts .................................................. 4101

43. Allowable Costs .......................................................................................... 4301

45. Contract Financing .................................................................................. 4501

47. Miscellaneous ............................................................................................. 4701

13 PART A—GENERAL

14 CHAPTER 1—DEFINITIONS

SUBCHAPTER I—SUBTITLE DEFINITIONS

Sec.

101. Administrator.

102. Commercial component.

103. Commercial item.

104. Commercially available off-the-shelf item.

105. Component.

106. Federal Acquisition Regulation.

107. Full and open competition.

108. Item and item of supply.

109. Major system.

110. Nondevelopmental item.

111. Procurement.

112. Procurement system.

113. Responsible source.

114. Standards.

115. Supplies.

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116. Technical data.

SUBCHAPTER II—PART B DEFINITIONS

131. Acquisition.

132. Competitive procedures.

133. Executive agency.

134. Simplified acquisition threshold.

SUBCHAPTER III—PART C DEFINITIONS

151. Agency head.

152. Competitive procedures.

153. Simplified acquisition threshold.

1 SUBCHAPTER I—SUBTITLE DEFINITIONS

2 § 101. Administrator

3 In this subtitle, the term ‘‘Administrator’’ means the Administrator for

4 Federal Procurement Policy appointed under section 1102 of this title.

5 § 102. Commercial component

6 In this subtitle, the term ‘‘commercial component’’ means a component

7 that is a commercial item.

8 § 103. Commercial item

9 In this subtitle, the term ‘‘commercial item’’ means—

10 (1) an item, other than real property, that—

11 (A) is of a type customarily used by the general public or by

12 nongovernmental entities for purposes other than governmental

13 purposes; and

14 (B) has been sold, leased, or licensed, or offered for sale, lease,

15 or license, to the general public;

16 (2) an item that—

17 (A) evolved from an item described in paragraph (1) through

18 advances in technology or performance; and

19 (B) is not yet available in the commercial marketplace but will

20 be available in the commercial marketplace in time to satisfy the

21 delivery requirements under a Federal Government solicitation;

22 (3) an item that would satisfy the criteria in paragraph (1) or (2)

23 were it not for—

24 (A) modifications of a type customarily available in the commer25 cial marketplace; or

26 (B) minor modifications made to meet Federal Government re27 quirements;

28 (4) any combination of items meeting the requirements of paragraph

29 (1), (2), (3), or (5) that are of a type customarily combined and sold

30 in combination to the general public;

31 (5) installation services, maintenance services, repair services, train32 ing services, and other services if—

33 (A) those services are procured for support of an item referred

34 to in paragraph (1), (2), (3), or (4), regardless of whether the

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1 services are provided by the same source or at the same time as

2 the item; and

3 (B) the source of the services provides similar services contem4 poraneously to the general public under terms and conditions simi5 lar to those offered to the Federal Government;

6 (6) services offered and sold competitively, in substantial quantities,

7 in the commercial marketplace based on established catalog or market

8 prices for specific tasks performed or specific outcomes to be achieved

9 and under standard commercial terms and conditions;

10 (7) any item, combination of items, or service referred to in para11 graphs (1) to (6) even though the item, combination of items, or service

12 is transferred between or among separate divisions, subsidiaries, or af13 filiates of a contractor; or

14 (8) a nondevelopmental item if the procuring agency determines, in

15 accordance with conditions in the Federal Acquisition Regulation, that

16 the item was developed exclusively at private expense and has been sold

17 in substantial quantities, on a competitive basis, to multiple State and

18 local governments.

19 § 104. Commercially available off-the-shelf item

20 In this subtitle, the term ‘‘commercially available off-the-shelf item’’—

21 (1) means an item that—

22 (A) is a commercial item (as described in section 103(1) of this

23 title);

24 (B) is sold in substantial quantities in the commercial market25 place; and

26 (C) is offered to the Federal Government, without modification,

27 in the same form in which it is sold in the commercial market28 place; but

29 (2) does not include bulk cargo, as defined in section 3 of the Ship30 ping Act of 1984 (46 App. U.S.C. 1702), such as agricultural products

31 and petroleum products.

32 § 105. Component

33 In this subtitle, the term ‘‘component’’ means an item supplied to the

34 Federal Government as part of an end item or of another component.

35 § 106. Federal Acquisition Regulation

36 In this subtitle, the term ‘‘Federal Acquisition Regulation’’ means the

37 regulation issued under section 1303(a)(1) of this title.

38 § 107. Full and open competition

39 In this subtitle, the term ‘‘full and open competition’’, when used with

40 respect to a procurement, means that all responsible sources are permitted

41 to submit sealed bids or competitive proposals on the procurement.

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1 § 108. Item and item of supply

2 In this subtitle, the terms ‘‘item’’ and ‘‘item of supply’’—

3 (1) mean an individual part, component, subassembly, assembly, or

4 subsystem integral to a major system, and other property which may

5 be replaced during the service life of the system, including spare parts

6 and replenishment spare parts; but

7 (2) do not include packaging or labeling associated with shipment or

8 identification of an item.

9 § 109. Major system

10 (a) IN GENERAL.—In this subtitle, the term ‘‘major system’’ means a

11 combination of elements that will function together to produce the capabili12 ties required to fulfill a mission need. These elements may include hardware,

13 equipment, software, or a combination of hardware, equipment, and soft14 ware, but do not include construction or other improvements to real prop15 erty.

16 (b) SYSTEM DEEMED TO BE MAJOR SYSTEM.—A system is deemed to

17 be a major system if—

18 (1) the Department of Defense is responsible for the system and the

19 total expenditures for research, development, testing, and evaluation for

20 the system are estimated to exceed $75,000,000 (based on fiscal year

21 1980 constant dollars) or the eventual total expenditure for procure22 ment exceeds $300,000,000 (based on fiscal year 1980 constant dol23 lars);

24 (2) a civilian agency is responsible for the system and total expendi25 tures for the system are estimated to exceed the greater of $750,000

26 (based on fiscal year 1980 constant dollars) or the dollar threshold for

27 a major system established by the agency pursuant to Office of Man28 agement and Budget (OMB) Circular A–109, entitled ‘‘Major Systems

29 Acquisitions’’; or

30 (3) the head of the agency responsible for the system designates the

31 system a major system.

32 § 110. Nondevelopmental item

33 In this subtitle, the term ‘‘nondevelopmental item’’ means—

34 (1) a commercial item;

35 (2) a previously developed item of supply that is in use by a depart36 ment or agency of the Federal Government, a State or local govern37 ment, or a foreign government with which the United States has a mu38 tual defense cooperation agreement;

39 (3) an item of supply described in paragraph (1) or (2) that requires

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1 able in the commercial marketplace to meet the requirements of the

2 procuring department or agency; or

3 (4) an item of supply currently being produced that does not meet

4 the requirements of paragraph (1), (2), or (3) solely because the item

5 is not yet in use.

6 § 111. Procurement

7 In this subtitle, the term ‘‘procurement’’ includes all stages of the process

8 of acquiring property or services, beginning with the process for determining

9 a need for property or services and ending with contract completion and

10 closeout.

11 § 112. Procurement system

12 In this subtitle, the term ‘‘procurement system’’ means the integration of

13 the procurement process, the professional development of procurement per14 sonnel, and the management structure for carrying out the procurement

15 function.

16 § 113. Responsible source

17 In this subtitle, the term ‘‘responsible source’’ means a prospective con18 tractor that—

19 (1) has adequate financial resources to perform the contract or the

20 ability to obtain those resources;

21 (2) is able to comply with the required or proposed delivery or per22 formance schedule, taking into consideration all existing commercial

23 and Government business commitments;

24 (3) has a satisfactory performance record;

25 (4) has a satisfactory record of integrity and business ethics;

26 (5) has the necessary organization, experience, accounting and oper27 ational controls, and technical skills, or the ability to obtain the organi28 zation, experience, controls, and skills;

29 (6) has the necessary production, construction, and technical equip30 ment and facilities, or the ability to obtain the equipment and facilities;

31 and

32 (7) is otherwise qualified and eligible to receive an award under ap33 plicable laws and regulations.

34 § 114. Standards

35 In this subtitle, the term ‘‘standards’’ means the criteria for determining

36 the effectiveness of the procurement system by measuring the performance

37 of the various elements of the system.

38 § 115. Supplies

39 In this subtitle, the term ‘‘supplies’’—

40 (1) means an individual part, component, subassembly, assembly, or

41 subsystem integral to a major system, and other property which may

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1 be replaced during the service life of the system, including spare parts

2 and replenishment spare parts; but

3 (2) does not include packaging or labeling associated with shipment

4 or identification of an item.

5 § 116. Technical data

6 In this subtitle, the term ‘‘technical data’’—

7 (1) means recorded information (regardless of the form or method

8 of the recording) of a scientific or technical nature (including computer

9 software documentation) relating to supplies procured by an agency;

10 but

11 (2) does not include computer software or financial, administrative,

12 cost or pricing, or management data or other information incidental to

13 contract administration.

14 SUBCHAPTER II—PART B DEFINITIONS

15 § 131. Acquisition

16 In part B, the term ‘‘acquisition’’—

17 (1) means the process of acquiring, with appropriated amounts, by

18 contract for purchase or lease, property or services (including construc19 tion) that support the missions and goals of an executive agency, from

20 the point at which the requirements of the executive agency are estab21 lished in consultation with the chief acquisition officer of the executive

22 agency; and

23 (2) includes—

24 (A) the process of acquiring property or services that are al25 ready in existence, or that must be created, developed, dem26 onstrated, and evaluated;

27 (B) the description of requirements to satisfy agency needs;

28 (C) solicitation and selection of sources;

29 (D) award of contracts;

30 (E) contract performance;

31 (F) contract financing;

32 (G) management and measurement of contract performance

33 through final delivery and payment; and

34 (H) technical and management functions directly related to the

35 process of fulfilling agency requirements by contract.

36 § 132. Competitive procedures

37 In part B, the term ‘‘competitive procedures’’ means procedures under

38 which an agency enters into a contract pursuant to full and open competi39 tion.

40 § 133. Executive agency

41 In part B, the term ‘‘executive agency’’ means—

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1 (1) an executive department specified in section 101 of title 5;

2 (2) a military department specified in section 102 of title 5;

3 (3) an independent establishment as defined in section 104(1) of title

4 5; and

5 (4) a wholly owned Government corporation fully subject to chapter

6 91 of title 31.

7 § 134. Simplified acquisition threshold

8 In part B, the term ‘‘simplified acquisition threshold’’ means $100,000.

9 SUBCHAPTER III—PART C DEFINITIONS

10 § 151. Agency head

11 In part C, the term ‘‘agency head’’ means the head or any assistant head

12 of an executive agency, and may at the option of the Administrator of Gen13 eral Services include the chief official of any principal organizational unit

14 of the General Services Administration.

15 § 152. Competitive procedures

16 In part C, the term ‘‘competitive procedures’’ means procedures under

17 which an executive agency enters into a contract pursuant to full and open

18 competition. The term also includes—

19 (1) procurement of architectural or engineering services conducted in

20 accordance with chapter 11 of title 40;

21 (2) the competitive selection of basic research proposals resulting

22 from a general solicitation and the peer review or scientific review (as

23 appropriate) of those proposals;

24 (3) the procedures established by the Administrator of General Serv25 ices for the multiple awards schedule program of the General Services

26 Administration if—

27 (A) participation in the program has been open to all respon28 sible sources; and

29 (B) orders and contracts under those procedures result in the

30 lowest overall cost alternative to meet the needs of the Federal

31 Government;

32 (4) procurements conducted in furtherance of section 15 of the Small

33 Business Act (15 U.S.C. 644) as long as all responsible business con34 cerns that are entitled to submit offers for those procurements are per35 mitted to compete; and

36 (5) a competitive selection of research proposals resulting from a

37 general solicitation and peer review or scientific review (as appropriate)

38 solicited pursuant to section 9 of that Act (15 U.S.C. 638).

39 § 153. Simplified acquisition threshold

40 (1) IN GENERAL.—In part C, the term ‘‘simplified acquisition threshold’’

41 has the meaning provided that term in section 134 of this title, except that,

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1 in the case of a contract to be awarded and performed, or purchase to be

2 made, outside the United States in support of a contingency operation or

3 a humanitarian or peacekeeping operation, the term means an amount equal

4 to two times the amount specified for that term in section 134 of this title.

5 (2) SPECIFIC DEFINITIONS RELATING TO SIMPLIFIED ACQUISITION

6 THRESHOLD.—In paragraph (1)—

7 (A) CONTINGENCY OPERATION.—The term ‘‘contingency operation’’

8 has the meaning given that term in section 101(a) of title 10.

9 (B) HUMANITARIAN OR PEACEKEEPING OPERATION.—The term ‘‘hu10 manitarian or peacekeeping operation’’ means a military operation in

11 support of the provision of humanitarian or foreign disaster assistance

12 or in support of a peacekeeping operation under chapter VI or VII of

13 the Charter of the United Nations. The term does not include routine

14 training, force rotation, or stationing.

15 PART B—OFFICE OF FEDERAL PROCUREMENT POLICY

16 CHAPTER 11—ESTABLISHMENT OF OFFICE AND

17 AUTHORITY AND FUNCTIONS OF ADMINISTRATOR

SUBCHAPTER I—GENERAL

Sec.

1101. Office of Federal Procurement Policy.

1102. Administrator.

SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR

1121. General authority.

1122. Functions.

1123. Small business concerns.

1124. Tests of innovative procurement methods and procedures.

1125. Recipients of Federal grants or assistance.

1126. Policy regarding consideration of contractor past performance.

1127. Determining benchmark compensation amount.

1128. Maintaining necessary capability with respect to acquisition of architectural and engineering services.

1129. Center of excellence in contracting for services.

1130. Effect of part on other law.

1131. Annual report.

18 SUBCHAPTER I—GENERAL

19 § 1101. Office of Federal Procurement Policy

20 (a) ORGANIZATION.—There is an Office of Federal Procurement Policy

21 in the Office of Management and Budget.

22 (b) PURPOSES.—The purposes of the Office of Federal Procurement Pol23 icy are to—

24 (1) provide overall direction of Government-wide procurement poli25 cies, regulations, procedures, and forms for executive agencies; and

26 (2) promote economy, efficiency, and effectiveness in the procure27 ment of property and services by the executive branch of the Federal

28 Government.

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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Necessary amounts may be

2 appropriated each fiscal year for the Office of Federal Procurement Policy

3 to carry out the responsibilities of the Office for that fiscal year.

4 § 1102. Administrator

5 (a) HEAD OF OFFICE.—The head of the Office of Federal Procurement

6 Policy is the Administrator for Federal Procurement Policy.

7 (b) APPOINTMENT.—The Administrator is appointed by the President, by

8 and with the advice and consent of the Senate.

9 SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE

10 ADMINISTRATOR

11 § 1121. General authority

12 (a) OVERALL DIRECTION AND LEADERSHIP.—The Administrator shall

13 provide overall direction of procurement policy and leadership in the devel14 opment of procurement systems of the executive agencies.

15 (b) FEDERAL ACQUISITION REGULATION.—To the extent that the Ad16 ministrator considers appropriate in carrying out the policies and functions

17 set forth in this part, and with due regard for applicable laws and the pro18 gram activities of the executive agencies, the Administrator may prescribe

19 Government-wide procurement policies. The policies shall be implemented in

20 a single Government-wide procurement regulation called the Federal Acqui21 sition Regulation.

22 (c) POLICIES TO BE FOLLOWED BY EXECUTIVE AGENCIES.—

23 (1) AREAS OF PROCUREMENT FOR WHICH POLICIES ARE TO BE FOL24 LOWED.—The policies implemented in the Federal Acquisition Regula25 tion shall be followed by executive agencies in the procurement of—

26 (A) property other than real property in being;

27 (B) services, including research and development; and

28 (C) construction, alteration, repair, or maintenance of real prop29 erty.

30 (2) PROCEDURES TO ENSURE COMPLIANCE.—The Administrator

31 shall establish procedures to ensure compliance with the Federal Acqui32 sition Regulation by all executive agencies.

33 (3) APPLICATION OF OTHER LAWS.—The authority of an executive

34 agency under another law to prescribe policies, regulations, procedures,

35 and forms for procurement is subject to the authority conferred in this

36 section and sections 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and

37 2304 of this title.

38 (d) WHEN CERTAIN AGENCIES ARE UNABLE TO AGREE OR FAIL TO

39 ACT.—In any instance in which the Administrator determines that the De40 partment of Defense, the National Aeronautics and Space Administration,

41 and the General Services Administration are unable to agree on or fail to

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1 issue Government-wide regulations, procedures, and forms in a timely man2 ner, including regulations, procedures, and forms necessary to implement

3 prescribed policy the Administrator initiates under subsection (b), the Ad4 ministrator, with due regard for applicable laws and the program activities

5 of the executive agencies and consistent with the policies and functions set

6 forth in this part, shall prescribe Government-wide regulations, procedures,

7 and forms which executive agencies shall follow in procuring items listed in

8 subsection (c)(1).

9 (e) OVERSIGHT OF PROCUREMENT REGULATIONS OF OTHER AGEN10 CIES.—The Administrator, with the concurrence of the Director of the Of11 fice of Management and Budget, and with consultation with the head of the

12 agency concerned, may deny the promulgation of or rescind any Govern13 ment-wide regulation or final rule or regulation of any executive agency re14 lating to procurement if the Administrator determines that the rule or regu15 lation is inconsistent with any policies, regulations, or procedures issued

16 pursuant to subsection (b).

17 (f) LIMITATION ON AUTHORITY.—The authority of the Administrator

18 under this part shall not be construed to—

19 (1) impair or interfere with the determination by executive agencies

20 of their need for, or their use of, specific property, services, or con21 struction, including particular specifications for the property, services,

22 or construction; or

23 (2) interfere with the determination by executive agencies of specific

24 actions in the award or administration of procurement contracts.

25 § 1122. Functions

26 (a) IN GENERAL.—The functions of the Administrator include—

27 (1) providing leadership and ensuring action by the executive agen28 cies in establishing, developing, and maintaining the single system of

29 simplified Government-wide procurement regulations and resolving dif30 ferences among the executive agencies in developing simplified Govern31 ment-wide procurement regulations, procedures, and forms;

32 (2) coordinating the development of Government-wide procurement

33 system standards that executive agencies shall implement in their pro34 curement systems;

35 (3) providing leadership and coordination in formulating the execu36 tive branch position on legislation relating to procurement;

37 (4)(A) providing for and directing the activities of the computer38 based Federal Procurement Data System (including recommending to

39 the Administrator of General Services a sufficient budget for those ac40 tivities), which shall be located in the General Services Administration,

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1 in order to adequately collect, develop, and disseminate procurement

2 data; and

3 (B) ensuring executive agency compliance with the record require4 ments of section 1710 of this title;

5 (5) providing for and directing the activities of the Federal Acquisi6 tion Institute (including recommending to the Administrator of General

7 Services a sufficient budget for those activities), which shall be located

8 in the General Services Administration, in order to—

9 (A) foster and promote the development of a professional acqui10 sition workforce Government-wide;

11 (B) promote and coordinate Government-wide research and

12 studies to improve the procurement process and the laws, policies,

13 methods, regulations, procedures, and forms relating to acquisition

14 by the executive agencies;

15 (C) collect data and analyze acquisition workforce data from the

16 Office of Personnel Management, from the heads of executive

17 agencies, and, through periodic surveys, from individual employees;

18 (D) periodically analyze acquisition career fields to identify crit19 ical competencies, duties, tasks, and related academic pre20 requisites, skills, and knowledge;

21 (E) coordinate and assist agencies in identifying and recruiting

22 highly qualified candidates for acquisition fields;

23 (F) develop instructional materials for acquisition personnel in

24 coordination with private and public acquisition colleges and train25 ing facilities;

26 (G) evaluate the effectiveness of training and career develop27 ment programs for acquisition personnel;

28 (H) promote the establishment and utilization of academic pro29 grams by colleges and universities in acquisition fields;

30 (I) facilitate, to the extent requested by agencies, interagency

31 intern and training programs; and

32 (J) perform other career management or research functions as

33 directed by the Administrator;

34 (6) administering section 1703(a) to (i) of this title;

35 (7) establishing criteria and procedures to ensure the effective and

36 timely solicitation of the viewpoints of interested parties in the develop37 ment of procurement policies, regulations, procedures, and forms;

38 (8) developing standard contract forms and contract language in

39 order to reduce the Federal Government’s cost of procuring property

40 and services and the private sector’s cost of doing business with the

41 Federal Government;

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1 (9) providing for a Government-wide award to recognize and promote

2 vendor excellence;

3 (10) providing for a Government-wide award to recognize and pro4 mote excellence in officers and employees of the Federal Government

5 serving in procurement-related positions;

6 (11) developing policies, in consultation with the Administrator of

7 the Small Business Administration, that ensure that small businesses,

8 qualified HUBZone small business concerns (as defined in section 3(p)

9 of the Small Business Act (15 U.S.C. 632(p))), small businesses owned

10 and controlled by socially and economically disadvantaged individuals,

11 and small businesses owned and controlled by women are provided with

12 the maximum practicable opportunities to participate in procurements

13 that are conducted for amounts below the simplified acquisition thresh14 old;

15 (12) developing policies that will promote achievement of goals for

16 participation by small businesses, small business concerns owned and

17 controlled by service-disabled veterans, qualified HUBZone small busi18 ness concerns (as defined in section 3(p) of the Small Business Act (15

19 U.S.C. 632(p))), small businesses owned and controlled by socially and

20 economically disadvantaged individuals, and small businesses owned

21 and controlled by women; and

22 (13) completing action, as appropriate, on the recommendations of

23 the Commission on Government Procurement.

24 (b) CONSULTATION AND ASSISTANCE.—In carrying out the functions in

25 subsection (a), the Administrator—

26 (1) shall consult with the affected executive agencies, including the

27 Small Business Administration;

28 (2) with the concurrence of the heads of affected executive agencies,

29 may designate one or more executive agencies to assist in performing

30 those functions; and

31 (3) may establish advisory committees or other interagency groups

32 to assist in providing for the establishment, development, and mainte33 nance of a single system of simplified Government-wide procurement

34 regulations and to assist in performing any other function the Adminis35 trator considers appropriate.

36 (c) ASSIGNMENT, DELEGATION, OR TRANSFER.—

37 (1) TO ADMINISTRATOR.—Except as otherwise provided by law, only

38 duties, functions, or responsibilities expressly assigned by this part

39 shall be assigned, delegated, or transferred to the Administrator.

40 (2) BY ADMINISTRATOR.—

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1 (A) WITHIN OFFICE.—The Administrator may make and au2 thorize delegations within the Office of Federal Procurement Pol3 icy that the Administrator determines to be necessary to carry out

4 this part.

5 (B) TO ANOTHER EXECUTIVE AGENCY.—The Administrator

6 may delegate, and authorize successive redelegations of, an author7 ity, function, or power of the Administrator under this part (other

8 than the authority to provide overall direction of Federal procure9 ment policy and to prescribe policies and regulations to carry out

10 the policy) to another executive agency with the consent of the

11 head of the executive agency or at the direction of the President.

12 § 1123. Small business concerns

13 In formulating the Federal Acquisition Regulation and procedures to en14 sure compliance with the Regulation, the Administrator, in consultation with

15 the Small Business Administration, shall—

16 (1) conduct analyses of the impact on small business concerns result17 ing from revised procurement regulations; and

18 (2) incorporate into revised procurement regulations simplified bid19 ding, contract performance, and contract administration procedures for

20 small business concerns.

21 § 1124. Tests of innovative procurement methods and proce22 dures

23 (a) IN GENERAL.—The Administrator may develop innovative procure24 ment methods and procedures to be tested by selected executive agencies.

25 In developing a program to test innovative procurement methods and proce26 dures under this subsection, the Administrator shall consult with the heads

27 of executive agencies to—

28 (1) ascertain the need for and specify the objectives of the program;

29 (2) develop the guidelines and procedures for carrying out the pro30 gram and the criteria to be used in measuring the success of the pro31 gram;

32 (3) evaluate the potential costs and benefits which may be derived

33 from the innovative procurement methods and procedures tested under

34 the program;

35 (4) select the appropriate executive agencies or components of execu36 tive agencies to carry out the program;

37 (5) specify the categories and types of products or services to be pro38 cured under the program; and

39 (6) develop the methods to be used to analyze the results of the pro40 gram.

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1 (b) APPROVAL OF EXECUTIVE AGENCIES REQUIRED.—A program to test

2 innovative procurement methods and procedures may not be carried out un3 less approved by the heads of the executive agencies selected to carry out

4 the program.

5 (c) REQUEST FOR WAIVER OF LAW.—If the Administrator determines

6 that it is necessary to waive the application of a provision of law to carry

7 out a proposed program to test innovative procurement methods and proce8 dures under subsection (a), the Administrator shall transmit notice of the

9 proposed program to the Committee on Government Reform of the House

10 of Representatives and the Committee on Homeland Security and Govern11 mental Affairs of the Senate and request that the Committees take the nec12 essary action to provide that the provision of law does not apply with re13 spect to the proposed program. The notification to Congress shall include—

14 (1) a description of the proposed program (including the scope and

15 purpose of the proposed program);

16 (2) the procedures to be followed in carrying out the proposed pro17 gram;

18 (3) the provisions of law affected and the application of any provi19 sion of law that must be waived in order to carry out the proposed pro20 gram; and

21 (4) the executive agencies involved in carrying out the proposed pro22 gram.

23 § 1125. Recipients of Federal grants or assistance

24 (a) AUTHORITY.—With due regard to applicable laws and the program

25 activities of the executive agencies administering Federal programs of

26 grants or assistance, the Administrator may prescribe Government-wide

27 policies, regulations, procedures, and forms that the Administrator considers

28 appropriate and that executive agencies shall follow in providing for the pro29 curement, to the extent required under those programs, of property or serv30 ices referred to in section 1121(c)(1) of this title by recipients of Federal

31 grants or assistance under the programs.

32 (b) LIMITATION.—Subsection (a) does not—

33 (1) permit the Administrator to authorize procurement or supply

34 support, either directly or indirectly, to a recipient of a Federal grant

35 or assistance; or

36 (2) authorize action by a recipient contrary to State and local law

37 in the case of a program to provide a Federal grant or assistance to

38 a State or political subdivision.

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1 § 1126. Policy regarding consideration of contractor past

2 performance

3 (a) GUIDANCE.—The Administrator shall prescribe for executive agencies

4 guidance regarding consideration of the past contract performance of

5 offerors in awarding contracts. The guidance shall include—

6 (1) standards for evaluating past performance with respect to cost

7 (when appropriate), schedule, compliance with technical or functional

8 specifications, and other relevant performance factors that facilitate

9 consistent and fair evaluation by all executive agencies;

10 (2) policies for the collection and maintenance of information on past

11 contract performance that, to the maximum extent practicable, facili12 tate automated collection, maintenance, and dissemination of informa13 tion and provide for ease of collection, maintenance, and dissemination

14 of information by other methods, as necessary;

15 (3) policies for ensuring that—

16 (A) offerors are afforded an opportunity to submit relevant in17 formation on past contract performance, including performance

18 under contracts entered into by the executive agency concerned,

19 other departments and agencies of the Federal Government, agen20 cies of State and local governments, and commercial customers;

21 and

22 (B) the information submitted by offerors is considered; and

23 (4) the period for which information on past performance of offerors

24 may be maintained and considered.

25 (b) INFORMATION NOT AVAILABLE.—If there is no information on past

26 contract performance of an offeror or the information on past contract per27 formance is not available, the offeror may not be evaluated favorably or un28 favorably on the factor of past contract performance.

29 § 1127. Determining benchmark compensation amount

30 (a) DEFINITIONS.—In this section:

31 (1) BENCHMARK COMPENSATION AMOUNT.—The term ‘‘benchmark

32 compensation amount’’, for a fiscal year, is the median amount of the

33 compensation provided for all senior executives of all benchmark cor34 porations for the most recent year for which data is available at the

35 time the determination under subsection (b) is made.

36 (2) BENCHMARK CORPORATION.—The term ‘‘benchmark corpora37 tion’’, with respect to a fiscal year, means a publicly-owned United

38 States corporation that has annual sales in excess of $50,000,000 for

39 the fiscal year.

40 (3) COMPENSATION.—The term ‘‘compensation’’, for a fiscal year,

41 means the total amount of wages, salary, bonuses, and deferred comjcorcoran on PRODPC62 with HEARING


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1 pensation for the fiscal year, whether paid, earned, or otherwise accru2 ing, as recorded in an employer’s cost accounting records for the fiscal

3 year.

4 (4) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year a

5 contractor establishes for accounting purposes.

6 (5) PUBLICLY-OWNED UNITED STATES CORPORATION.—The term

7 ‘‘publicly-owned United States corporation’’ means a corporation—

8 (A) organized under the laws of a State of the United States,

9 the District of Columbia, Puerto Rico, or a possession of the

10 United States; and

11 (B) whose voting stock is publicly traded.

12 (6) SENIOR EXECUTIVES.—The term ‘‘senior executives’’, with re13 spect to a contractor, means the 5 most highly compensated employees

14 in management positions at each home office and each segment of the

15 contractor.

16 (b) DETERMINING BENCHMARK COMPENSATION AMOUNT.—For purposes

17 of section 4304(a)(16) of this title and section 2324(e)(1)(P) of title 10,

18 the Administrator shall review commercially available surveys of executive

19 compensation and, on the basis of the results of the review, determine a

20 benchmark compensation amount to apply for each fiscal year. In making

21 determinations under this subsection, the Administrator shall consult with

22 the Director of the Defense Contract Audit Agency and other officials of

23 executive agencies as the Administrator considers appropriate.

24 § 1128. Maintaining necessary capability with respect to ac25 quisition of architectural and engineering services

26 The Administrator, in consultation with the Secretary of Defense, the Ad27 ministrator of General Services, and the Director of the Office of Personnel

28 Management, shall develop and implement a plan to ensure that the Federal

29 Government maintains the necessary capability with respect to the acquisi30 tion of architectural and engineering services to—

31 (1) ensure that Federal Government employees have the expertise to

32 determine agency requirements for those services;

33 (2) establish priorities and programs, including acquisition plans;

34 (3) establish professional standards;

35 (4) develop scopes of work; and

36 (5) award and administer contracts for those services.

37 § 1129. Center of excellence in contracting for services

38 The Administrator shall maintain a center of excellence in contracting for

39 services. The center shall assist the acquisition community by identifying,

40 and serving as a clearinghouse for, best practices in contracting for services

41 in the public and private sectors.

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1 § 1130. Effect of part on other law

2 This part does not impair or affect the authorities or responsibilities re3 lating to the procurement of real property conferred by part C of this sub4 title and chapters 1 to 11 of title 40.

5 § 1131. Annual report

6 The Administrator annually shall submit to Congress an assessment of

7 the progress made in executive agencies in implementing the policy regard8 ing major acquisitions that is stated in section 3103(a) of this title. The

9 Administrator shall use data from existing management systems in making

10 the assessment.

11 CHAPTER 13—ACQUISITION COUNCILS

SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY COUNCIL

Sec.

1301. Definition.

1302. Establishment and membership.

1303. Functions and authority.

1304. Contract clauses and certifications.

SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL

1311. Establishment and membership.

1312. Functions.

12 SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY

13 COUNCIL

14 § 1301. Definition

15 In this subchapter, the term ‘‘Council’’ means the Federal Acquisition

16 Regulatory Council established under section 1302(a) of this title.

17 § 1302. Establishment and membership

18 (a) ESTABLISHMENT.—There is a Federal Acquisition Regulatory Council

19 to assist in the direction and coordination of Government-wide procurement

20 policy and Government-wide procurement regulatory activities in the Fed21 eral Government.

22 (b) MEMBERSHIP.—

23 (1) MAKEUP OF COUNCIL.—The Council consists of—

24 (A) the Administrator;

25 (B) the Secretary of Defense;

26 (C) the Administrator of National Aeronautics and Space; and

27 (D) the Administrator of General Services.

28 (2) DESIGNATION OF OTHER OFFICIALS.—

29 (A) OFFICIALS WHO MAY BE DESIGNATED.—Notwithstanding

30 section 121(d)(1) and (2) of title 40, the officials specified in sub31 paragraphs (B) to (D) of paragraph (1) may designate to serve

32 on and attend meetings of the Council in place of that official—

33 (i) the official assigned by statute with the responsibility

34 for acquisition policy in each of their respective agencies or,

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1 nizational level not lower than an Assistant Secretary of De2 fense within the Office of the Under Secretary of Defense for

3 Acquisition, Technology, and Logistics; or

4 (ii) if no official of that agency is assigned by statute with

5 the responsibility for acquisition policy for that agency, the

6 official designated pursuant to section 1702(c) of this title.

7 (B) LIMITATION ON DESIGNATION.—No other official or em8 ployee may be designated to serve on the Council.

9 § 1303. Functions and authority

10 (a) FUNCTIONS.—

11 (1) ISSUE AND MAINTAIN FEDERAL ACQUISITION REGULATION.—

12 Subject to sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131,

13 and 2304 of this title, the Administrator of General Services, the Sec14 retary of Defense, and the Administrator of National Aeronautics and

15 Space, pursuant to their respective authorities under part C of this

16 subtitle, chapters 4 and 137 of title 10, and the National Aeronautics

17 and Space Act of 1958 (42 U.S.C. 2451 et seq.), shall jointly issue and

18 maintain in accordance with subsection (d) a single Government-wide

19 procurement regulation, to be known as the Federal Acquisition Regu20 lation.

21 (2) LIMITATION ON OTHER REGULATIONS.—Other regulations relat22 ing to procurement issued by an executive agency shall be limited to—

23 (A) regulations essential to implement Government-wide policies

24 and procedures within the agency; and

25 (B) additional policies and procedures required to satisfy the

26 specific and unique needs of the agency.

27 (3) ENSURE CONSISTENT REGULATIONS.—The Administrator, in

28 consultation with the Council, shall ensure that procurement regula29 tions prescribed by executive agencies are consistent with the Federal

30 Acquisition Regulation and in accordance with the policies prescribed

31 pursuant to section 1121(b) of this title.

32 (4) REQUEST TO REVIEW REGULATION.—

33 (A) BASIS FOR REQUEST.—Under procedures the Administrator

34 establishes, a person may request the Administrator to review a

35 regulation relating to procurement on the basis that the regulation

36 is inconsistent with the Federal Acquisition Regulation.

37 (B) PERIOD OF REVIEW.—Unless the request is frivolous or

38 does not, on its face, state a valid basis for the review, the Admin39 istrator shall complete the review not later than 60 days after re40 ceiving the request. The time for completion of the review may be

41 extended if the Administrator determines that an additional period

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1 of review is required. The Administrator shall advise the requester

2 of the reasons for the extension and the date by which the review

3 will be completed.

4 (5) WHEN REGULATION IS INCONSISTENT OR NEEDS TO BE IM5 PROVED.—If the Administrator determines that a regulation relating to

6 procurement is inconsistent with the Federal Acquisition Regulation or

7 that the regulation otherwise should be revised to remove an inconsist8 ency with the policies prescribed under section 1121(b) of this title, the

9 Administrator shall rescind or deny the promulgation of the regulation

10 or take other action authorized under sections 1121, 1122(a) to (c)(1),

11 1125, 1126, 1130, 1131, and 2304 of this title as may be necessary

12 to remove the inconsistency. If the Administrator determines that the

13 regulation, although not inconsistent with the Federal Acquisition Reg14 ulation or those policies, should be revised to improve compliance with

15 the Regulation or policies, the Administrator shall take action author16 ized under sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131,

17 and 2304 as may be necessary and appropriate.

18 (6) DECISIONS TO BE IN WRITING AND PUBLICLY AVAILABLE.—The

19 decisions of the Administrator shall be in writing and made publicly

20 available.

21 (b) ADDITIONAL RESPONSIBILITIES OF MEMBERSHIP.—

22 (1) IN GENERAL.—Subject to the authority, direction, and control of

23 the head of the agency concerned, each official who represents an agen24 cy on the Council pursuant to section 1302(b) of this title shall—

25 (A) approve or disapprove all regulations relating to procure26 ment that are proposed for public comment, prescribed in final

27 form, or otherwise made effective by that agency before the regula28 tion may be prescribed in final form, or otherwise made effective,

29 except that the official may grant an interim approval, without re30 view, for not more than 60 days for a procurement regulation in

31 urgent and compelling circumstances;

32 (B) carry out the responsibilities of that agency set forth in

33 chapter 35 of title 44 for each information collection request that

34 relates to procurement rules or regulations; and

35 (C) eliminate or reduce—

36 (i) any redundant or unnecessary levels of review and ap37 proval in the procurement system of that agency; and

38 (ii) redundant or unnecessary procurement regulations

39 which are unique to that agency.

40 (2) LIMITATION ON DELEGATION.—The authority to review and ap41 prove or disapprove regulations under paragraph (1)(A) may not be

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1 delegated to an individual outside the office of the official who rep2 resents the agency on the Council pursuant to section 1302(b) of this

3 title.

4 (c) GOVERNING POLICIES.—All actions of the Council and of members of

5 the Council shall be in accordance with and furtherance of the policies pre6 scribed under section 1121(b) of this title.

7 (d) GENERAL AUTHORITY WITH RESPECT TO FEDERAL ACQUISITION

8 REGULATION.—Subject to section 1121(d) of this title, the Council shall

9 manage, coordinate, control, and monitor the maintenance of, issuance of,

10 and changes in, the Federal Acquisition Regulation.

11 § 1304. Contract clauses and certifications

12 (a) REPETITIVE NONSTANDARD CONTRACT CLAUSES DISCOURAGED.—

13 The Council shall prescribe regulations to discourage the use of a non14 standard contract clause on a repetitive basis. The regulations shall include

15 provisions that—

16 (1) clearly define what types of contract clauses are to be treated

17 as nonstandard clauses; and

18 (2) require prior approval for the use of a nonstandard clause on a

19 repetitive basis by an official at a level of responsibility above the con20 tracting officer.

21 (b) WHEN CERTIFICATION REQUIRED.—

22 (1) BY LAW.—A provision of law may not be construed as requiring

23 a certification by a contractor or offeror in a procurement made or to

24 be made by the Federal Government unless that provision of law spe25 cifically provides that such a certification shall be required.

26 (2) IN FEDERAL ACQUISITION REGULATION.—A requirement for a

27 certification by a contractor or offeror may not be included in the Fed28 eral Acquisition Regulation unless—

29 (A) the certification requirement is specifically imposed by stat30 ute; or

31 (B) written justification for the certification requirement is pro32 vided to the Administrator by the Council and the Administrator

33 approves in writing the inclusion of the certification requirement.

34 (3) EXECUTIVE AGENCY PROCUREMENT REGULATION.—

35 (A) DEFINITION.—In subparagraph (B), the term ‘‘head of the

36 executive agency’’ with respect to a military department means the

37 Secretary of Defense.

38 (B) WHEN CERTIFICATION REQUIREMENT MAY BE INCLUDED

39 IN REGULATION.—A requirement for a certification by a con40 tractor or offeror may not be included in a procurement regulation

41 of an executive agency unless—

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1 (i) the certification requirement is specifically imposed by

2 statute; or

3 (ii) written justification for the certification requirement is

4 provided to the head of the executive agency by the senior

5 procurement executive of the agency and the head of the exec6 utive agency approves in writing the inclusion of the certifi7 cation requirement.

8 SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL

9 § 1311. Establishment and membership

10 (a) ESTABLISHMENT.—There is in the executive branch a Chief Acquisi11 tion Officers Council.

12 (b) MEMBERSHIP.—The members of the Council are—

13 (1) the Deputy Director for Management of the Office of Manage14 ment and Budget;

15 (2) the Administrator;

16 (3) the Under Secretary of Defense for Acquisition, Technology, and

17 Logistics;

18 (4) the chief acquisition officer of each executive agency that is re19 quired to have a chief acquisition officer under section 1702 of this

20 title and the senior procurement executive of each military department;

21 and

22 (5) any other senior agency officer of each executive agency, ap23 pointed by the head of the agency in consultation with the Chairman

24 of the Council, who can effectively assist the Council in performing the

25 functions set forth in section 1312(b) of this title and supporting the

26 associated range of acquisition activities.

27 (c) LEADERSHIP AND SUPPORT.—

28 (1) CHAIRMAN.—The Deputy Director for Management of the Office

29 of Management and Budget is the Chairman of the Council.

30 (2) VICE CHAIRMAN.—The Vice Chairman of the Council shall be se31 lected by the Council from among its members. The Vice Chairman

32 serves for one year and may serve multiple terms.

33 (3) LEADER OF ACTIVITIES.—The Administrator shall lead the ac34 tivities of the Council on behalf of the Deputy Director for Manage35 ment.

36 (4) SUPPORT.—The Administrator of General Services shall provide

37 administrative and other support for the Council.

38 § 1312. Functions

39 (a) PRINCIPAL FORUM.—The Chief Acquisition Officers Council is the

40 principal interagency forum for monitoring and improving the Federal ac41 quisition system.

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1 (b) FUNCTIONS.—The Council shall perform functions that include the

2 following:

3 (1) Develop recommendations for the Director of the Office of Man4 agement and Budget on Federal acquisition policies and requirements.

5 (2) Share experiences, ideas, best practices, and innovative ap6 proaches related to Federal acquisition.

7 (3) Assist the Administrator in the identification, development, and

8 coordination of multiagency projects and other innovative initiatives to

9 improve Federal acquisition.

10 (4) Promote effective business practices that ensure the timely deliv11 ery of best value products to the Federal Government and achieve ap12 propriate public policy objectives.

13 (5) Further integrity, fairness, competition, openness, and efficiency

14 in the Federal acquisition system.

15 (6) Work with the Office of Personnel Management to assess and ad16 dress the hiring, training, and professional development needs of the

17 Federal Government related to acquisition.

18 (7) Work with the Administrator and the Federal Acquisition Regu19 latory Council to promote the business practices referred to in para20 graph (4) and other results of the functions carried out under this sub21 section.

22 CHAPTER 15—COST ACCOUNTING STANDARDS

Sec.

1501. Cost Accounting Standards Board.

1502. Cost accounting standards.

1503. Contract price adjustment.

1504. Effect on other standards and regulations.

1505. Examinations.

1506. Authorization of appropriations.

23 § 1501. Cost Accounting Standards Board

24 (a) ORGANIZATION.—The Cost Accounting Standards Board is an inde25 pendent board in the Office of Federal Procurement Policy.

26 (b) MEMBERSHIP.—

27 (1) NUMBER OF MEMBERS, CHAIRMAN, AND APPOINTMENT.—The

28 Board consists of 5 members. One member is the Administrator, who

29 serves as Chairman. The other 4 members, all of whom shall have expe30 rience in Federal Government contract cost accounting, are as follows:

31 (A) 2 representatives of the Federal Government—

32 (i) one of whom is a representative of the Department of

33 Defense appointed by the Secretary of Defense; and

34 (ii) one of whom is an officer or employee of the General

35 Services Administration appointed by the Administrator of

36 General Services.

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1 (B) 2 individuals from the private sector, each of whom is ap2 pointed by the Administrator, and—

3 (i) one of whom is a representative of industry; and

4 (ii) one of whom is particularly knowledgeable about cost

5 accounting problems and systems.

6 (2) TERM OF OFFICE.—

7 (A) LENGTH OF TERM.—The term of office of each member,

8 other than the Administrator, is 4 years. The terms are staggered,

9 with the terms of 2 members expiring in the same year, the term

10 of another member expiring the next year, and the term of the last

11 member expiring the year after that.

12 (B) INDIVIDUAL REQUIRED TO REMAIN WITH APPOINTING

13 AGENCY.—A member appointed under paragraph (1)(A) may not

14 continue to serve after ceasing to be an officer or employee of the

15 agency from which that member was appointed.

16 (3) VACANCY.—A vacancy on the Board shall be filled in the same

17 manner in which the original appointment was made. A member ap18 pointed to fill a vacancy serves for the remainder of the term for which

19 that member’s predecessor was appointed.

20 (c) SENIOR STAFF.—The Administrator, after consultation with the

21 Board, may—

22 (1) appoint an executive secretary and 2 additional staff members

23 without regard to the provisions of title 5 governing appointments in

24 the competitive service; and

25 (2) pay those employees without regard to the provisions of chapter

26 51 and subchapter III of chapter 53 of title 5 relating to classification

27 and General Schedule pay rates, except that those employees may not

28 receive pay in excess of the maximum rate of basic pay payable under

29 section 5376 of title 5.

30 (d) OTHER STAFF.—The Administrator may appoint, fix the compensa31 tion of, and remove additional employees of the Board under the applicable

32 provisions of title 5.

33 (e) DETAILED AND TEMPORARY PERSONNEL.—For service on advisory

34 committees and task forces to assist the Board in carrying out its functions

35 and responsibilities—

36 (1) the Board, with the consent of the head of a Federal agency,

37 may use, without reimbursement, personnel of that agency; and

38 (2) the Administrator, after consultation with the Board, may pro39 cure temporary and intermittent services of personnel under section

40 3109(b) of title 5.

41 (f) COMPENSATION.—

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1 (1) OFFICERS AND EMPLOYEES OF THE GOVERNMENT.—Members of

2 the Board who are officers or employees of the Federal Government,

3 and officers and employees of other agencies of the Federal Govern4 ment who are used under subsection (e)(1), shall not receive additional

5 compensation for services but shall continue to be compensated by the

6 employing department or agency of the officer or employee.

7 (2) APPOINTEES FROM PRIVATE SECTOR.—Each member of the

8 Board appointed from the private sector shall receive compensation at

9 a rate not to exceed the daily equivalent of the rate for level IV of the

10 Executive Schedule for each day (including travel time) in which the

11 member is engaged in the actual performance of duties vested in the

12 Board.

13 (3) TEMPORARY AND INTERMITTENT PERSONNEL.—An individual

14 hired under subsection (e)(2) may receive compensation at a rate fixed

15 by the Administrator, but not to exceed the daily equivalent of the rate

16 for level V of the Executive Schedule for each day (including travel

17 time) in which the individual is properly engaged in the actual perform18 ance of duties under this chapter.

19 (4) TRAVEL EXPENSES.—While serving away from home or regular

20 place of business, Board members and other individuals serving on an

21 intermittent basis under this chapter shall be allowed travel expenses

22 in accordance with section 5703 of title 5.

23 § 1502. Cost accounting standards

24 (a) AUTHORITY.—

25 (1) COST ACCOUNTING STANDARDS BOARD.—The Cost Accounting

26 Standards Board has exclusive authority to prescribe, amend, and re27 scind cost accounting standards, and interpretations of the standards,

28 designed to achieve uniformity in the cost accounting standards gov29 erning measurement, assignment, and allocation of costs to contracts

30 with the Federal Government.

31 (2) ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY.—The

32 Administrator, after consultation with the Board, shall prescribe rules

33 and procedures governing actions of the Board under this chapter. The

34 rules and procedures shall require that any action to prescribe, amend,

35 or rescind a standard or interpretation be approved by majority vote

36 of the Board.

37 (b) MANDATORY USE OF STANDARDS.—

38 (1) SUBCONTRACT.—

39 (A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’

40 includes a transfer of commercial items between divisions, subsidi41 aries, or affiliates of a contractor or subcontractor.

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1 (B) WHEN STANDARDS ARE TO BE USED.—Cost accounting

2 standards prescribed under this chapter are mandatory for use by

3 all executive agencies and by contractors and subcontractors in es4 timating, accumulating, and reporting costs in connection with the

5 pricing and administration of, and settlement of disputes con6 cerning, all negotiated prime contract and subcontract procure7 ments with the Federal Government in excess of the amount set

8 forth in section 2306a(a)(1)(A)(i) of title 10 as the amount is ad9 justed in accordance with applicable requirements of law.

10 (C) NONAPPLICATION OF STANDARDS.—Subparagraph (B) does

11 not apply to—

12 (i) a contract or subcontract for the acquisition of a com13 mercial item;

14 (ii) a contract or subcontract where the price negotiated is

15 based on a price set by law or regulation;

16 (iii) a firm, fixed-price contract or subcontract awarded on

17 the basis of adequate price competition without submission of

18 certified cost or pricing data; or

19 (iv) a contract or subcontract with a value of less than

20 $7,500,000 if, when the contract or subcontract is entered

21 into, the segment of the contractor or subcontractor that will

22 perform the work has not been awarded at least one contract

23 or subcontract with a value of more than $7,500,000 that is

24 covered by the standards.

25 (2) EXEMPTIONS AND WAIVERS BY BOARD.—The Board may—

26 (A) exempt classes of contractors and subcontractors from the

27 requirements of this chapter; and

28 (B) establish procedures for the waiver of the requirements of

29 this chapter for individual contracts and subcontracts.

30 (3) WAIVER BY HEAD OF EXECUTIVE AGENCY.—

31 (A) IN GENERAL.—The head of an executive agency may waive

32 the applicability of the cost accounting standards for a contract

33 or subcontract with a value of less than $15,000,000 if that offi34 cial determines in writing that the segment of the contractor or

35 subcontractor that will perform the work—

36 (i) is primarily engaged in the sale of commercial items;

37 and

38 (ii) would not otherwise be subject to the cost accounting

39 standards under this section.

40 (B) IN EXCEPTIONAL CIRCUMSTANCES.—The head of an execu41 tive agency may waive the applicability of the cost accounting

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1 standards for a contract or subcontract under exceptional cir2 cumstances when necessary to meet the needs of the agency. A de3 termination to waive the applicability of the standards under this

4 subparagraph shall be set forth in writing and shall include a

5 statement of the circumstances justifying the waiver.

6 (C) RESTRICTION ON DELEGATION OF AUTHORITY.—The head

7 of an executive agency may not delegate the authority under sub8 paragraph (A) or (B) to an official in the executive agency below

9 the senior policymaking level in the executive agency.

10 (D) CONTENTS OF FEDERAL ACQUISITION REGULATION.—The

11 Federal Acquisition Regulation shall include—

12 (i) criteria for selecting an official to be delegated authority

13 to grant waivers under subparagraph (A) or (B); and

14 (ii) the specific circumstances under which the waiver may

15 be granted.

16 (E) REPORT.—The head of each executive agency shall report

17 the waivers granted under subparagraphs (A) and (B) for that

18 agency to the Board on an annual basis.

19 (c) REQUIRED BOARD ACTION FOR PRESCRIBING STANDARDS AND IN20 TERPRETATIONS.—Before prescribing cost accounting standards and inter21 pretations, the Board shall—

22 (1) take into account, after consultation and discussions with the

23 Comptroller General, professional accounting organizations, contrac24 tors, and other interested parties—

25 (A) the probable costs of implementation, including any infla26 tionary effects, compared to the probable benefits;

27 (B) the advantages, disadvantages, and improvements antici28 pated in the pricing and administration of, and settlement of dis29 putes concerning, contracts; and

30 (C) the scope of, and alternatives available to, the action pro31 posed to be taken;

32 (2) prepare and publish a report in the Federal Register on the

33 issues reviewed under paragraph (1);

34 (3)(A) publish an advanced notice of proposed rulemaking in the

35 Federal Register to solicit comments on the report prepared under

36 paragraph (2);

37 (B) provide all parties affected at least 60 days after publication to

38 submit their views and comments; and

39 (C) during the 60-day period, consult with the Comptroller General

40 and consider any recommendation the Comptroller General may make;

41 and

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1 (4) publish a notice of proposed rulemaking in the Federal Register

2 and provide all parties affected at least 60 days after publication to

3 submit their views and comments.

4 (d) EFFECTIVE DATES.—Rules, regulations, cost accounting standards,

5 and modifications thereof prescribed or amended under this chapter shall

6 have the full force and effect of law, and shall become effective within 120

7 days after publication in the Federal Register in final form, unless the

8 Board determines that a longer period is necessary. The Board shall deter9 mine implementation dates for contractors and subcontractors. The dates

10 may not be later than the beginning of the second fiscal year of the con11 tractor or subcontractor after the standard becomes effective.

12 (e) ACCOMPANYING MATERIAL.—Rules, regulations, cost accounting

13 standards, and modifications thereof prescribed or amended under this

14 chapter shall be accompanied by prefatory comments and by illustrations,

15 if necessary.

16 (f) IMPLEMENTING REGULATIONS.—The Board shall prescribe regula17 tions for the implementation of cost accounting standards prescribed or in18 terpreted under this section. The regulations shall be incorporated into the

19 Federal Acquisition Regulation and shall require contractors and sub20 contractors as a condition of contracting with the Federal Government to—

21 (1) disclose in writing their cost accounting practices, including

22 methods of distinguishing direct costs from indirect costs and the basis

23 used for allocating indirect costs; and

24 (2) agree to a contract price adjustment, with interest, for any in25 creased costs the Federal Government pays the contractor or subcon26 tractor because of a change in the contractor’s or subcontractor’s cost

27 accounting practices or a failure by the contractor or subcontractor to

28 comply with applicable cost accounting standards.

29 (g) NONAPPLICABILITY OF CERTAIN SECTIONS OF TITLE 5.—Functions

30 exercised under this chapter are not subject to sections 551, 553 to 559,

31 and 701 to 706 of title 5.

32 § 1503. Contract price adjustment

33 (a) DISAGREEMENT CONSTITUTES A DISPUTE.—If the Federal Govern34 ment and a contractor or subcontractor fail to agree on a contract price ad35 justment, including whether the contractor or subcontractor has complied

36 with the applicable cost accounting standards, the disagreement will con37 stitute a dispute under chapter 69 of this title.

38 (b) AMOUNT OF ADJUSTMENT.—A contract price adjustment undertaken

39 under section 1502(f)(2) of this title shall be made, where applicable, on

40 relevant contracts between the Federal Government and the contractor that

41 are subject to the cost accounting standards so as to protect the Federal

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1 Government from payment, in the aggregate, of increased costs, as defined

2 by the Cost Accounting Standards Board. The Federal Government may not

3 recover costs greater than the aggregate increased cost to the Federal Gov4 ernment on the relevant contracts subject to the price adjustment unless the

5 contractor made a change in its cost accounting practices of which it was

6 aware or should have been aware at the time of the price negotiation and

7 which it failed to disclose to the Federal Government.

8 (c) INTEREST.—The interest rate applicable to a contract price adjust9 ment is the annual rate of interest established under section 6621 of the

10 Internal Revenue Code of 1986 (26 U.S.C. 6621) for the period. Interest

11 accrues from the time payments of the increased costs were made to the

12 contractor or subcontractor to the time the Federal Government receives full

13 compensation for the price adjustment.

14 § 1504. Effect on other standards and regulations

15 (a) PREVIOUSLY EXISTING STANDARDS.—All cost accounting standards,

16 waivers, exemptions, interpretations, modifications, rules, and regulations

17 prescribed by the Cost Accounting Standards Board under section 719 of

18 the Defense Production Act of 1950 (50 App. U.S.C. 2168)—

19 (1) remain in effect until amended, superseded, or rescinded by the

20 Board under this chapter; and

21 (2) are subject to the provisions of this part in the same manner as

22 if prescribed by the Board under this part.

23 (b) INCONSISTENT AGENCY REGULATIONS.—To ensure that a regulation

24 or proposed regulation of an executive agency is not inconsistent with a cost

25 accounting standard prescribed or amended under this chapter, the Admin26 istrator, under the authority in sections 1121, 1122(a) to (c)(1), 1125,

27 1126, 1130, 1131, and 2304 of this title, shall rescind or deny the promul28 gation of the inconsistent regulation or proposed regulation and take other

29 appropriate action authorized under sections 1121, 1122(a) to (c)(1), 1125,

30 1126, 1130, 1131, and 2304.

31 (c) COSTS NOT SUBJECT TO DIFFERENT STANDARDS.—Costs that are

32 the subject of cost accounting standards prescribed under this chapter are

33 not subject to regulations established by another executive agency that dif34 fer from those standards with respect to the measurement, assignment, and

35 allocation of those costs.

36 § 1505. Examinations

37 To determine whether a contractor or subcontractor has complied with

38 cost accounting standards prescribed under this chapter and has followed

39 consistently the contractor’s or subcontractor’s disclosed cost accounting

40 practices, an authorized representative of the head of the agency concerned,

41 of the offices of inspector general established under the Inspector General

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1 Act of 1978 (5 App. U.S.C.), or of the Comptroller General shall have the

2 right to examine and copy documents, papers, or records of the contractor

3 or subcontractor relating to compliance with the standards.

4 § 1506. Authorization of appropriations

5 Necessary amounts may be appropriated to carry out this chapter.

6 CHAPTER 17—AGENCY RESPONSIBILITIES AND

7 PROCEDURES

Sec.

1701. Cooperation with the Administrator.

1702. Chief Acquisition Officers and senior procurement executives.

1703. Acquisition workforce.

1704. Advocates for competition.

1705. Personnel evaluation.

1706. Publication of proposed regulations.

1707. Procurement notice.

1708. Contracting functions performed by Federal personnel.

1709. Value engineering.

1710. Record requirements.

1711. Procurement data.

8 § 1701. Cooperation with the Administrator

9 On the request of the Administrator, each executive agency shall—

10 (1) make its services, personnel, and facilities available to the Office

11 of Federal Procurement Policy to the greatest practicable extent for the

12 performance of functions under this part; and

13 (2) except when prohibited by law, furnish to the Administrator, and

14 give the Administrator access to, all information and records in its pos15 session that the Administrator may determine to be necessary for the

16 performance of the functions of the Office.

17 § 1702. Chief Acquisition Officers and senior procurement

18 executives

19 (a) APPOINTMENT OR DESIGNATION OF CHIEF ACQUISITION OFFICER.—

20 The head of each executive agency described in section 901(b)(1) (other

21 than the Department of Defense) or 901(b)(2)(C) of title 31 with a Chief

22 Financial Officer appointed or designated under section 901(a) of title 31

23 shall appoint or designate a non-career employee as Chief Acquisition Offi24 cer for the agency.

25 (b) AUTHORITY AND FUNCTIONS OF CHIEF ACQUISITION OFFICER.—

26 (1) PRIMARY DUTY.—The primary duty of a Chief Acquisition Offi27 cer is acquisition management.

28 (2) ADVICE AND ASSISTANCE.—A Chief Acquisition Officer shall ad29 vise and assist the head of the executive agency and other agency offi30 cials to ensure that the mission of the executive agency is achieved

31 through the management of the agency’s acquisition activities.

32 (3) OTHER FUNCTIONS.—The functions of each Chief Acquisition

33 Officer include—

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1 (A) monitoring the performance of acquisition activities and ac2 quisition programs of the executive agency, evaluating the per3 formance of those programs on the basis of applicable performance

4 measurements, and advising the head of the executive agency re5 garding the appropriate business strategy to achieve the mission

6 of the executive agency;

7 (B) increasing the use of full and open competition in the acqui8 sition of property and services by the executive agency by estab9 lishing policies, procedures, and practices that ensure that the ex10 ecutive agency receives a sufficient number of sealed bids or com11 petitive proposals from responsible sources to fulfill the Federal

12 Government’s requirements (including performance and delivery

13 schedules) at the lowest cost or best value considering the nature

14 of the property or service procured;

15 (C) increasing appropriate use of performance-based contracting

16 and performance specifications;

17 (D) making acquisition decisions consistent with all applicable

18 laws and establishing clear lines of authority, accountability, and

19 responsibility for acquisition decisionmaking within the executive

20 agency;

21 (E) managing the direction of acquisition policy for the execu22 tive agency, including implementation of the unique acquisition

23 policies, regulations, and standards of the executive agency;

24 (F) developing and maintaining an acquisition career manage25 ment program in the executive agency to ensure that there is an

26 adequate professional workforce; and

27 (G) as part of the strategic planning and performance evalua28 tion process required under section 306 of title 5 and sections

29 1105(a)(28), 1115, 1116, and 9703 of title 31—

30 (i) assessing the requirements established for agency per31 sonnel regarding knowledge and skill in acquisition resources

32 management and the adequacy of those requirements for fa33 cilitating the achievement of the performance goals estab34 lished for acquisition management;

35 (ii) developing strategies and specific plans for hiring,

36 training, and professional development to rectify a deficiency

37 in meeting those requirements; and

38 (iii) reporting to the head of the executive agency on the

39 progress made in improving acquisition management capa40 bility.

41 (c) SENIOR PROCUREMENT EXECUTIVE.—

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1 (1) DESIGNATION.—The head of each executive agency shall des2 ignate a senior procurement executive.

3 (2) RESPONSIBILITY.—The senior procurement executive is respon4 sible for management direction of the procurement system of the execu5 tive agency, including implementation of the unique procurement poli6 cies, regulations, and standards of the executive agency.

7 (3) WHEN CHIEF ACQUISITION OFFICER APPOINTED OR DES8 IGNATED.—For an executive agency for which a Chief Acquisition Offi9 cer has been appointed or designated under subsection (a), the head

10 of the executive agency shall—

11 (A) designate the Chief Acquisition Officer as the senior pro12 curement executive for the executive agency; or

13 (B) ensure that the senior procurement executive designated

14 under paragraph (1) reports directly to the Chief Acquisition Offi15 cer without intervening authority.

16 § 1703. Acquisition workforce

17 (a) DESCRIPTION.—For purposes of this section, the acquisition work18 force of an agency consists of all employees serving in acquisition positions

19 listed in subsection (g)(1)(A).

20 (b) APPLICABILITY.—

21 (1) NONAPPLICABILITY TO CERTAIN EXECUTIVE AGENCIES.—Except

22 as provided in subsection (i), this section does not apply to an executive

23 agency that is subject to chapter 87 of title 10.

24 (2) APPLICABILITY OF PROGRAMS.—The programs established by

25 this section apply to the acquisition workforce of each executive agency.

26 (c) MANAGEMENT POLICIES.—

27 (1) DUTIES OF HEAD OF EXECUTIVE AGENCY.—

28 (A) ESTABLISH POLICIES AND PROCEDURES.—After consulta29 tion with the Administrator, the head of each executive agency

30 shall establish policies and procedures for the effective manage31 ment (including accession, education, training, career development,

32 and performance incentives) of the acquisition workforce of the

33 agency. The development of acquisition workforce policies under

34 this section shall be carried out consistent with the merit system

35 principles set forth in section 2301(b) of title 5.

36 (B) ENSURE UNIFORM IMPLEMENTATION.—The head of each

37 executive agency shall ensure that, to the maximum extent prac38 ticable, acquisition workforce policies and procedures established

39 are uniform in their implementation throughout the agency.

40 (2) DUTIES OF ADMINISTRATOR.—The Administrator shall issue

41 policies to promote uniform implementation of this section by executive

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1 agencies, with due regard for differences in program requirements

2 among agencies that may be appropriate and warranted in view of the

3 agency mission. The Administrator shall coordinate with the Deputy

4 Director for Management of the Office of Management and Budget to

5 ensure that the policies are consistent with the policies and procedures

6 established, and enhanced system of incentives provided, pursuant to

7 section 5051(c) of the Federal Acquisition Streamlining Act of 1994

8 (Public Law 103–355, 108 Stat. 3351). The Administrator shall evalu9 ate the implementation of this section by executive agencies.

10 (d) AUTHORITY AND RESPONSIBILITY OF SENIOR PROCUREMENT EXEC11 UTIVE.—Subject to the authority, direction, and control of the head of an

12 executive agency, the senior procurement executive of the agency shall carry

13 out all powers, functions, and duties of the head of the agency with respect

14 to implementing this section. The senior procurement executive shall ensure

15 that the policies of the head of the executive agency established in accord16 ance with this section are implemented throughout the agency.

17 (e) COLLECTING AND MAINTAINING INFORMATION.—The Administrator

18 shall ensure that the heads of executive agencies collect and maintain stand19 ardized information on the acquisition workforce related to implementing

20 this section. To the maximum extent practicable, information requirements

21 shall conform to standards the Director of the Office of Personnel Manage22 ment establishes for the Central Personnel Data File.

23 (f) CAREER DEVELOPMENT.—

24 (1) CAREER PATHS.—

25 (A) IDENTIFICATION.—The head of each executive agency shall

26 ensure that appropriate career paths for personnel who desire to

27 pursue careers in acquisition are identified in terms of the edu28 cation, training, experience, and assignments necessary for career

29 progression to the most senior acquisition positions. The head of

30 each executive agency shall make available information on those

31 career paths.

32 (B) CRITICAL DUTIES AND TASKS.—For each career path, the

33 head of each executive agency shall identify the critical acquisition34 related duties and tasks in which, at minimum, employees of the

35 agency in the career path shall be competent to perform at full

36 performance grade levels. For this purpose, the head of the execu37 tive agency shall provide appropriate coverage of the critical duties

38 and tasks identified by the Director of the Federal Acquisition In39 stitute.

40 (C) MANDATORY TRAINING AND EDUCATION.—For each career

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1 ments for the completion of course work and related on-the-job

2 training in the critical acquisition-related duties and tasks of the

3 career path. The head of each executive agency also shall encour4 age employees to maintain the currency of their acquisition knowl5 edge and generally enhance their knowledge of related acquisition

6 management disciplines through academic programs and other

7 self-developmental activities.

8 (2) PERFORMANCE INCENTIVES.—The head of each executive agency

9 shall provide for an enhanced system of incentives to encourage excel10 lence in the acquisition workforce that rewards performance of employ11 ees who contribute to achieving the agency’s performance goals. The

12 system of incentives shall include provisions that—

13 (A) relate pay to performance (including the extent to which the

14 performance of personnel in the workforce contributes to achieving

15 the cost goals, schedule goals, and performance goals established

16 for acquisition programs pursuant to section 3103(b) of this title);

17 and

18 (B) provide for consideration, in personnel evaluations and pro19 motion decisions, of the extent to which the performance of per20 sonnel in the workforce contributes to achieving the cost goals,

21 schedule goals, and performance goals.

22 (g) QUALIFICATION REQUIREMENTS.—

23 (1) IN GENERAL.—Subject to paragraph (2), the Administrator

24 shall—

25 (A) establish qualification requirements, including education re26 quirements, for—

27 (i) entry-level positions in the General Schedule Con28 tracting series (GS–1102);

29 (ii) senior positions in the General Schedule Contracting

30 series (GS–1102);

31 (iii) all positions in the General Schedule Purchasing series

32 (GS–1105); and

33 (iv) positions in other General Schedule series in which sig34 nificant acquisition-related functions are performed; and

35 (B) prescribe the manner and extent to which the qualification

36 requirements shall apply to an individual serving in a position de37 scribed in subparagraph (A) at the time the requirements are es38 tablished.

39 (2) RELATIONSHIP TO REQUIREMENTS APPLICABLE TO DEFENSE AC40 QUISITION WORKFORCE.—The Administrator shall establish qualifica41 tion requirements and make prescriptions under paragraph (1) that are

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1 comparable to those established for the same or equivalent positions

2 pursuant to chapter 87 of title 10 with appropriate modifications.

3 (3) APPROVAL OF REQUIREMENTS.—The Administrator shall submit

4 any requirement established or prescription made under paragraph (1)

5 to the Director of the Office of Personnel Management for approval.

6 The Director is deemed to have approved the requirement or prescrip7 tion if the Director does not disapprove the requirement or prescription

8 within 30 days after receiving it.

9 (h) EDUCATION AND TRAINING.—

10 (1) FUNDING LEVELS.—The head of an executive agency shall set

11 forth separately the funding levels requested for educating and training

12 the acquisition workforce in the budget justification documents sub13 mitted in support of the President’s budget submitted to Congress

14 under section 1105 of title 31.

15 (2) TUITION ASSISTANCE.—The head of an executive agency may

16 provide tuition reimbursement in education (including a full-time

17 course of study leading to a degree) in accordance with section 4107

18 of title 5 for personnel serving in acquisition positions in the agency.

19 (3) RESTRICTED OBLIGATION.—Amounts appropriated for education

20 and training under this section may not be obligated for another pur21 pose.

22 (i) TRAINING FUND.—

23 (1) PURPOSES.—The purposes of this subsection are to ensure that

24 the Federal acquisition workforce—

25 (A) adapts to fundamental changes in the nature of Federal

26 Government acquisition of property and services associated with

27 the changing roles of the Federal Government; and

28 (B) acquires new skills and a new perspective to enable it to

29 contribute effectively in the changing environment of the 21st cen30 tury.

31 (2) ESTABLISHMENT AND MANAGEMENT OF FUND.—There is an ac32 quisition workforce training fund. The Administrator of General Serv33 ices shall manage the fund through the Federal Acquisition Institute

34 to support the training of the acquisition workforce of the executive

35 agencies, except as provided in paragraph (5). The Administrator of

36 General Services shall consult with the Administrator in managing the

37 fund.

38 (3) CREDITS TO FUND.—Five percent of the fees collected by execu39 tive agencies (other than the Department of Defense) under the fol40 lowing contracts shall be credited to the fund:

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1 (A) Government-wide task and delivery-order contracts entered

2 into under sections 4103 and 4105 of this title.

3 (B) Government-wide contracts for the acquisition of informa4 tion technology as defined in section 11101 of title 40 and multi5 agency acquisition contracts for that technology authorized by sec6 tion 11314 of title 40.

7 (C) multiple-award schedule contracts entered into by the Ad8 ministrator of General Services.

9 (4) REMITTANCE BY HEAD OF EXECUTIVE AGENCY.—The head of an

10 executive agency that administers a contract described in paragraph (3)

11 shall remit to the General Services Administration the amount required

12 to be credited to the fund with respect to the contract at the end of

13 each quarter of the fiscal year.

14 (5) TRANSFER AND USE OF FEES COLLECTED FROM DEPARTMENT

15 OF DEFENSE.—The Administrator of General Services shall transfer to

16 the Secretary of Defense fees collected from the Department of Defense

17 pursuant to paragraph (3). The Defense Acquisition University shall

18 use the fees for acquisition workforce training.

19 (6) AMOUNTS NOT TO BE USED FOR OTHER PURPOSES.—The Ad20 ministrator of General Services, through the Office of Federal

21 Procurememt Policy, shall ensure that amounts collected for training

22 under this subsection are not used for a purpose other than the pur23 pose specified in paragraph (2).

24 (7) AMOUNTS ARE IN ADDITION TO OTHER AMOUNTS FOR EDU25 CATION AND TRAINING.—Amounts credited to the fund are in addition

26 to amounts requested and appropriated for education and training re27 ferred to in subsection (h)(1).

28 (8) AVAILABILITY OF AMOUNTS.—Amounts credited to the fund re29 main available to be expended only in the fiscal year for which they

30 are credited and the 2 succeeding fiscal years.

31 (9) EXPIRATION.—This subsection ceases to be effective 5 years

32 after November 24, 2003.

33 (j) RECRUITMENT PROGRAM.—

34 (1) SHORTAGE CATEGORY POSITIONS.—For purposes of sections

35 3304, 5333, and 5753 of title 5, the head of a department or agency

36 of the Federal Government (other than the Secretary of Defense) may

37 determine, under regulations prescribed by the Office of Personnel

38 Management, that certain Federal acquisition positions (as described in

39 subsection (g)(1)(A)) are shortage category positions in order to use

40 the authorities in those sections to recruit and appoint highly qualified

41 individuals directly to those positions in the department or agency.

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1 (2) REPORT.—Not later than March 31, 2007, the Director of the

2 Office of Personnel Management, in consultation with the Adminis3 trator, shall submit to Congress a report on the implementation of this

4 subsection. The report shall include—

5 (A) a list of the departments and agencies that exercised the au6 thority provided in this subsection and whether the exercise of the

7 authority was carried out in accordance with the regulations of the

8 Office of Personnel Management;

9 (B) the Director’s assessment of the efficacy of the exercise of

10 the authority provided in this subsection in attracting employees

11 with unusually high qualifications to the acquisition workforce;

12 and

13 (C) recommendations the Director considers appropriate on

14 whether the authority to carry out the program should be ex15 tended.

16 (3) TERMINATION OF AUTHORITY.—The head of a department or

17 agency may not appoint an individual to a position of employment

18 under this subsection after September 30, 2007.

19 § 1704. Advocates for competition

20 (a) ESTABLISHMENT AND DESIGNATION.—

21 (1) ESTABLISHMENT.—Each executive agency has an advocate for

22 competition.

23 (2) DESIGNATION.—The head of each executive agency shall—

24 (A) designate for the executive agency and for each procuring

25 activity of the executive agency one officer or employee serving in

26 a position authorized for the executive agency on July 18, 1984

27 (other than the senior procurement executive designated pursuant

28 to section 1702(c) of this title) to serve as the advocate for com29 petition;

30 (B) not assign those officers or employees duties or responsibil31 ities that are inconsistent with the duties and responsibilities of

32 the advocates for competition; and

33 (C) provide those officers or employees with the staff or assist34 ance necessary to carry out the duties and responsibilities of the

35 advocate for competition, such as individuals who are specialists

36 in engineering, technical operations, contract administration, fi37 nancial management, supply management, and utilization of small

38 and disadvantaged business concerns.

39 (b) DUTIES AND FUNCTIONS.—The advocate for competition of an execu40 tive agency shall—

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1 (1) be responsible for challenging barriers to, and promoting full and

2 open competition in, the procurement of property and services by the

3 executive agency;

4 (2) review the procurement activities of the executive agency;

5 (3) identify and report to the senior procurement executive of the ex6 ecutive agency—

7 (A) opportunities and actions taken to achieve full and open

8 competition in the procurement activities of the executive agency;

9 and

10 (B) any condition or action which has the effect of unnecessarily

11 restricting competition in the procurement actions of the executive

12 agency;

13 (4) prepare and transmit to the senior procurement executive an an14 nual report describing—

15 (A) the advocate’s activities under this section;

16 (B) new initiatives required to increase competition; and

17 (C) remaining barriers to full and open competition;

18 (5) recommend to the senior procurement executive—

19 (A) goals and the plans for increasing competition on a fiscal

20 year basis; and

21 (B) a system of personal and organizational accountability for

22 competition, which may include the use of recognition and awards

23 to motivate program managers, contracting officers, and others in

24 authority to promote competition in procurement programs; and

25 (6) describe other ways in which the executive agency has empha26 sized competition in programs for procurement training and research.

27 (c) RESPONSIBILITIES.—The advocate for competition for each procuring

28 activity is responsible for promoting full and open competition, promoting

29 the acquisition of commercial items, and challenging barriers to acquisition,

30 including unnecessarily restrictive statements of need, unnecessarily detailed

31 specifications, and unnecessarily burdensome contract clauses.

32 § 1705. Personnel evaluation

33 The head of each executive agency subject to part C shall ensure, with

34 respect to the employees of that agency whose primary duties and respon35 sibilities pertain to the award of contracts subject to the provisions of the

36 Small Business and Federal Procurement Competition Enhancement Act of

37 1984 (Public Law 98–577, 98 Stat. 3066), that the performance appraisal

38 system applicable to those employees affords appropriate recognition to,

39 among other factors, efforts to—

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1 (1) increase competition and achieve cost savings through the elimi2 nation of procedures that unnecessarily inhibit full and open competi3 tion;

4 (2) further the purposes of the Small Business and Federal Procure5 ment Competition Enhancement Act of 1984 (Public Law 98–577, 98

6 Stat. 3066) and the Defense Procurement Reform Act of 1984 (Public

7 Law 98–525, title XII, 98 Stat. 2588); and

8 (3) further other objectives and purposes of the Federal acquisition

9 system authorized by law.

10 § 1706. Publication of proposed regulations

11 (a) COVERED POLICIES, REGULATIONS, PROCEDURES, AND FORMS.—

12 (1) REQUIRED COMMENT PERIOD.—Except as provided in subsection

13 (d), a procurement policy, regulation, procedure, or form (including an

14 amendment or modification thereto) may not take effect until 60 days

15 after it is published for public comment in the Federal Register pursu16 ant to subsection (b) if it—

17 (A) relates to the expenditure of appropriated amounts; and

18 (B)(i) has a significant effect beyond the internal operating pro19 cedures of the agency issuing the policy, regulation, procedure, or

20 form; or

21 (ii) has a significant cost or administrative impact on contrac22 tors or offerors.

23 (2) EXCEPTION.—A policy, regulation, procedure, or form may take

24 effect earlier than 60 days after the publication date when there are

25 compelling circumstances for the earlier effective date, but the effective

26 date may not be less than 30 days after the publication date.

27 (b) PUBLICATION IN FEDERAL REGISTER AND COMMENT PERIOD.—Sub28 ject to subsection (c), the head of the agency shall have published in the

29 Federal Register a notice of the proposed procurement policy, regulation,

30 procedure, or form and provide for a public comment period for receiving

31 and considering the views of all interested parties on the proposal. The

32 length of the comment period may not be less than 30 days.

33 (c) CONTENTS OF NOTICE.—Notice of a proposed procurement policy,

34 regulation, procedure, or form prepared for publication in the Federal Reg35 ister shall include—

36 (1) the text of the proposal or, if it is impracticable to publish the

37 full text of the proposal, a summary of the proposal and a statement

38 specifying the name, address, and telephone number of the officer or

39 employee of the executive agency from whom the full text may be ob40 tained; and

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1 (2) a request for interested parties to submit comments on the pro2 posal and the name and address of the officer or employee of the Fed3 eral Government designated to receive the comments.

4 (d) WAIVER.—The requirements of subsections (a) and (b) may be waived

5 by the officer authorized to issue a procurement policy, regulation, proce6 dure, or form if urgent and compelling circumstances make compliance with

7 the requirements impracticable.

8 (e) EFFECTIVENESS OF POLICY, REGULATION, PROCEDURE, OR FORM.—

9 (1) TEMPORARY BASIS.—A procurement policy, regulation, proce10 dure, or form for which the requirements of subsections (a) and (b)

11 are waived under subsection (d) is effective on a temporary basis if—

12 (A) a notice of the policy, regulation, procedure, or form is pub13 lished in the Federal Register and includes a statement that the

14 policy, regulation, procedure, or form is temporary; and

15 (B) provision is made for a public comment period of 30 days

16 beginning on the date on which the notice is published.

17 (2) FINAL POLICY, REGULATION, PROCEDURE, OR FORM.—After con18 sidering the comments received, the head of the agency waiving the re19 quirements of subsections (a) and (b) under subsection (d) may issue

20 the final procurement policy, regulation, procedure, or form.

21 § 1707. Procurement notice

22 (a) NOTICE REQUIREMENT.—Except as provided in subsection (b)—

23 (1) an executive agency intending to solicit bids or proposals for a

24 contract for property or services for a price expected to exceed

25 $10,000, but not to exceed $25,000, shall post, for not less than 10

26 days, in a public place at the contracting office issuing the solicitation

27 a notice of solicitation described in subsection (c);

28 (2) an executive agency shall publish a notice of solicitation described

29 in subsection (c) if the agency intends to—

30 (A) solicit bids or proposals for a contract for property or serv31 ices for a price expected to exceed $25,000; or

32 (B) place an order, expected to exceed $25,000, under a basic

33 agreement, basic ordering agreement, or similar arrangement; and

34 (3) an executive agency awarding a contract for property or services

35 for a price exceeding $25,000, or placing an order exceeding $25,000

36 under a basic agreement, basic ordering agreement, or similar arrange37 ment, shall furnish for publication a notice announcing the award or

38 order if there is likely to be a subcontract under the contract or order.

39 (b) EXEMPTIONS.—

40 (1) IN GENERAL.—A notice is not required under subsection (a) if—

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1 (A) the proposed procurement is for an amount not greater

2 than the simplified acquisition threshold and is to be conducted

3 by—

4 (i) using widespread electronic public notice of the solicita5 tion in a form that allows convenient and universal user ac6 cess through a single, Government-wide point of entry; and

7 (ii) permitting the public to respond to the solicitation elec8 tronically;

9 (B) the notice would disclose the executive agency’s needs and

10 disclosure would compromise national security;

11 (C) the proposed procurement would result from acceptance

12 of—

13 (i) an unsolicited proposal that demonstrates a unique and

14 innovative research concept and publication of a notice of the

15 unsolicited research proposal would disclose the originality of

16 thought or innovativeness of the proposal or would disclose

17 proprietary information associated with the proposal; or

18 (ii) a proposal submitted under section 9 of the Small

19 Business Act (15 U.S.C. 638);

20 (D) the procurement is made against an order placed under a

21 requirements contract, a task order contract, or a delivery order

22 contract;

23 (E) the procurement is made for perishable subsistence supplies;

24 (F) the procurement is for utility services, other than tele25 communication services, and only one source is available;

26 (G) the procurement is for the services of an expert for use in

27 any litigation or dispute (including any reasonably foreseeable liti28 gation or dispute) involving the Federal Government in a trial,

29 hearing, or proceeding before a court, administrative tribunal, or

30 agency, or in any part of an alternative dispute resolution process,

31 whether or not the expert is expected to testify; or

32 (H) the procurement is by the Secretary of Homeland Security

33 pursuant to the special procedures provided in section 833(c) of

34 the Homeland Security Act of 2002 (6 U.S.C. 393(c)).

35 (2) CERTAIN PROCUREMENTS.—The requirements of subsection

36 (a)(2) do not apply to a procurement—

37 (A) under conditions described in paragraph (2), (3), (4), (5),

38 or (7) of section 3303(a) of this title or paragraph (2), (3), (4),

39 (5), or (7) of section 2304(c) of title 10; or

40 (B) for which the head of the executive agency makes a deter41 mination in writing, after consultation with the Administrator and

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1 the Administrator of the Small Business Administration, that it is

2 not appropriate or reasonable to publish a notice before issuing a

3 solicitation.

4 (3) IMPLEMENTATION CONSISTENT WITH INTERNATIONAL AGREE5 MENTS.—Paragraph (1)(A) shall be implemented in a manner con6 sistent with applicable international agreements.

7 (c) CONTENTS OF NOTICE.—Each notice of solicitation required by para8 graph (1) or (2) of subsection (a) shall include—

9 (1) an accurate description of the property or services to be con10 tracted for, which description—

11 (A) shall not be unnecessarily restrictive of competition; and

12 (B) shall include, as appropriate, the agency nomenclature, Na13 tional Stock Number or other part number, and a brief description

14 of the item’s form, fit, or function, physical dimensions, predomi15 nant material of manufacture, or similar information that will as16 sist a prospective contractor to make an informed business judg17 ment as to whether a copy of the solicitation should be requested;

18 (2) provisions that—

19 (A)(i) state whether the technical data required to respond to

20 the solicitation will not be furnished as part of the solicitation; and

21 (ii) identify the source in the Federal Government, if any, from

22 which the technical data may be obtained; and

23 (B)(i) state whether an offeror or its product or service must

24 meet a qualification requirement in order to be eligible for award;

25 and

26 (ii) if so, identify the office from which the qualification require27 ment may be obtained;

28 (3) the name, business address, and telephone number of the con29 tracting officer;

30 (4) a statement that all responsible sources may submit a bid, pro31 posal, or quotation (as appropriate) that the agency shall consider;

32 (5) in the case of a procurement using procedures other than com33 petitive procedures, a statement of the reason justifying the use of

34 those procedures and the identity of the intended source; and

35 (6) in the case of a contract in an amount estimated to be greater

36 than $25,000 but not greater than the simplified acquisition threshold,

37 or a contract for the procurement of commercial items using special

38 simplified procedures—

39 (A) a description of the procedures to be used in awarding the

40 contract; and

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1 (B) a statement specifying the periods for prospective offerors

2 and the contracting officer to take the necessary preaward and

3 award actions.

4 (d) ELECTRONIC PUBLICATION OF NOTICE OF SOLICITATION, AWARD, OR

5 ORDER.—A notice of solicitation, award, or order required to be published

6 under subsection (a) shall be published by electronic means. The notice

7 must be electronically accessible in a form that allows convenient and uni8 versal user access through the single Government-wide point of entry des9 ignated in the Federal Acquisition Regulation.

10 (e) TIME LIMITATIONS.—

11 (1) ISSUING NOTICE OF SOLICITATION AND ESTABLISHING DEAD12 LINE FOR SUBMITTING BIDS AND PROPOSALS.—An executive agency re13 quired by subsection (a)(2) to publish a notice of solicitation may not—

14 (A) issue the solicitation earlier than 15 days after the date on

15 which the notice is published; or

16 (B) in the case of a contract or order expected to be greater

17 than the simplified acquisition threshold, establish a deadline for

18 the submission of all bids or proposals in response to the notice

19 required by subsection (a)(2) that—

20 (i) in the case of a solicitation for research and develop21 ment, is earlier than 45 days after the date the notice re22 quired for a bid or proposal for a contract described in sub23 section (a)(2)(A) is published;

24 (ii) in the case of an order under a basic agreement, basic

25 ordering agreement, or similar arrangement, is earlier than

26 30 days after the date the notice required for an order de27 scribed in subsection (a)(2)(B) is published; or

28 (iii) in any other case, is earlier than 30 days after the

29 date the solicitation is issued.

30 (2) ESTABLISHING DEADLINE WHEN NONE PROVIDED BY STAT31 UTE.—An executive agency shall establish a deadline for the submis32 sion of all bids or proposals in response to a solicitation for which a

33 deadline is not provided by statute. Each deadline for the submission

34 of offers shall afford potential offerors a reasonable opportunity to re35 spond.

36 (3) FLEXIBLE DEADLINES.—The Administrator shall prescribe regu37 lations defining limited circumstances in which flexible deadlines can be

38 used under paragraph (1) for the issuance of solicitations and the sub39 mission of bids or proposals for the procurement of commercial items.

40 (f) CONSIDERATION OF CERTAIN TIMELY RECEIVED OFFERS.—An exec41 utive agency intending to solicit offers for a contract for which a notice of

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1 solicitation is required to be posted under subsection (a)(1) shall ensure that

2 contracting officers consider each responsive offer timely received from an

3 offeror.

4 (g) AVAILABILITY OF COMPLETE SOLICITATION PACKAGE AND PAYMENT

5 OF FEE.—An executive agency shall make available to a business concern,

6 or the authorized representative of a concern, the complete solicitation pack7 age for any on-going procurement announced pursuant to a notice of solici8 tation under subsection (a). An executive agency may require the payment

9 of a fee, not exceeding the actual cost of duplication, for a copy of the pack10 age.

11 § 1708. Contracting functions performed by Federal per12 sonnel

13 (a) COVERED PERSONNEL.—Personnel referred to in subsection (b) are—

14 (1) an employee, as defined in section 2105 of title 5;

15 (2) a member of the armed forces; and

16 (3) an individual assigned to a Federal agency pursuant to sub17 chapter VI of chapter 33 of title 5.

18 (b) LIMITATION ON PAYMENT FOR ADVISORY AND ASSISTANCE SERV19 ICES.—No individual who is not an individual described in subsection (a)

20 may be paid by an executive agency for services to conduct evaluations or

21 analyses of any aspect of a proposal submitted for an acquisition unless per22 sonnel described in subsection (a) with adequate training and capabilities

23 to perform the evaluations and analyses are not readily available in the

24 agency or another Federal agency. When administering this subsection, the

25 head of each executive agency shall determine in accordance with standards

26 and procedures prescribed in the Federal Acquisition Regulation whether—

27 (1) a sufficient number of personnel described in subsection (a) in

28 the agency or another Federal agency are readily available to perform

29 a particular evaluation or analysis for the head of the executive agency

30 making the determination; and

31 (2) the readily available personnel have the training and capabilities

32 necessary to perform the evaluation or analysis.

33 (c) CERTAIN RELATIONSHIP NOT AFFECTED.—This section does not af34 fect the relationship between the Federal Government and a Federally fund35 ed research and development center.

36 § 1709. Value engineering

37 Each executive agency shall establish and maintain cost-effective proce38 dures and processes for analyzing the functions of a program, project, sys39 tem, product, item of equipment, building, facility, service, or supply of the

40 agency. The analysis shall be—

41 (1) performed by qualified agency or contractor personnel; and

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1 (2) directed at improving performance, reliability, quality, safety,

2 and life cycle costs.

3 § 1710. Record requirements

4 (a) MAINTAINING RECORDS ON COMPUTER.—Each executive agency shall

5 establish and maintain for 5 years a computer file, by fiscal year, containing

6 unclassified records of all procurements greater than the simplified acquisi7 tion threshold in that fiscal year.

8 (b) CONTENTS.—The record established under subsection (a) shall in9 clude, with respect to each procurement carried out using—

10 (1) competitive procedures—

11 (A) the date of contract award;

12 (B) information identifying the source to whom the contract was

13 awarded;

14 (C) the property or services the Federal Government obtains

15 under the procurement; and

16 (D) the total cost of the procurement; or

17 (2) procedures other than competitive procedures—

18 (A) the information described in paragraph (1);

19 (B) the reason under section 3303(a) of this title or section

20 2304(c) of title 10 for using the procedures; and

21 (C) the identity of the organization or activity that conducted

22 the procurement.

23 (c) SEPARATE RECORD CATEGORY FOR PROCUREMENTS RESULTING IN

24 ONE BID OR PROPOSAL.—Information included in a record pursuant to

25 subsection (b)(1) that relates to procurements resulting in the submission

26 of a bid or proposal by only one responsible source shall be separately cat27 egorized from the information relating to other procurements included in

28 the record. The record of that information shall be designated ‘‘noncompeti29 tive procurements using competitive procedures’’.

30 (d) TRANSMISSION AND DATA SYSTEM ENTRY OF INFORMATION.—Infor31 mation included in the record established and maintained under subsection

32 (a) shall be transmitted to the Administrator of General Services and shall

33 be entered in the Federal Procurement Data System referred to in section

34 1122(a)(4) of this title.

35 § 1711. Procurement data

36 (a) DEFINITIONS.—In this section:

37 (1) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.—The term

38 ‘‘qualified HUBZone small business concern’’ has the meaning given

39 that term in section 3(p) of the Small Business Act (15 U.S.C.

40 632(p)).

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1 (2) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY SO2 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.—The term

3 ‘‘small business concern owned and controlled by socially and economi4 cally disadvantaged individuals’’ has the meaning given that term in

5 section 8(d) of the Small Business Act (15 U.S.C. 637(d)).

6 (3) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY

7 WOMEN.—The term ‘‘small business concern owned and controlled by

8 women’’ has the meaning given that term in section 8(d) of the Small

9 Business Act (15 U.S.C. 637(d)) and section 204 of the Women’s

10 Business Ownership Act of 1988 (Public Law 100–533, 102 Stat.

11 2692).

12 (b) REPORTING.—Each Federal agency shall report to the Office of Fed13 eral Procurement Policy the number of qualified HUBZone small business

14 concerns, the number of small businesses owned and controlled by women,

15 and the number of small business concerns owned and controlled by socially

16 and economically disadvantaged individuals, by gender, that are first time

17 recipients of contracts from the agency. The Office shall take appropriate

18 action to ascertain, for each fiscal year, the number of those small busi19 nesses that have newly entered the Federal market.

20 CHAPTER 19—SIMPLIFIED ACQUISITION PROCEDURES

Sec.

1901. Simplified acquisition procedures.

1902. Procedures applicable to purchases below micro-purchase threshold.

1903. Special emergency procurement authority.

1904. Certain transactions for defense against attack.

1905. List of laws inapplicable to contracts or subcontracts not greater than simplified acquisition threshold.

1906. List of laws inapplicable to procurements of commercial items.

1907. List of laws inapplicable to procurements of commercially available off-the-shelf items.

1908. Inflation adjustment of acquisition-related dollar thresholds.

21 § 1901. Simplified acquisition procedures

22 (a) WHEN PROCEDURES ARE TO BE USED.—To promote efficiency and

23 economy in contracting and to avoid unnecessary burdens for agencies and

24 contractors, the Federal Acquisition Regulation shall provide for special

25 simplified procedures for purchases of property and services for amounts—

26 (1) not greater than the simplified acquisition threshold; and

27 (2) greater than the simplified acquisition threshold but not greater

28 than $5,000,000 for which the contracting officer reasonably expects,

29 based on the nature of the property or services sought and on market

30 research, that offers will include only commercial items.

31 (b) PROHIBITION ON DIVIDING PURCHASES.—A proposed purchase or

32 contract for an amount above the simplified acquisition threshold may not

33 be divided into several purchases or contracts for lesser amounts to use the

34 simplified acquisition procedures required by subsection (a).

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1 (c) PROMOTION OF COMPETITION REQUIRED.—When using simplified ac2 quisition procedures, the head of an executive agency shall promote competi3 tion to the maximum extent practicable.

4 (d) CONSIDERATION OF OFFERS TIMELY RECEIVED.—The simplified ac5 quisition procedures contained in the Federal Acquisition Regulation shall

6 include a requirement that a contracting officer consider each responsive

7 offer timely received from an eligible offeror.

8 (e) REPORT.—Until October 1, 2004, procuring activities shall continue

9 to report under section 1710(d) of this title procurement awards of at least

10 $25,000, but less than $100,000, in conformity with the procedures for the

11 reporting of a contract award greater than $25,000 that were in effect on

12 October 1, 1992.

13 (f) SPECIAL RULES FOR COMMERCIAL ITEMS.—The Federal Acquisition

14 Regulation shall provide that an executive agency using special simplified

15 procedures to purchase commercial items—

16 (1) shall publish a notice in accordance with section 1707 of this title

17 and, as provided in section 1707(c)(4) of this title, permit all respon18 sible sources to submit a bid, proposal, or quotation (as appropriate)

19 that the agency shall consider;

20 (2) may not conduct the purchase on a sole source basis unless the

21 need to do so is justified in writing and approved in accordance with

22 section 2304(f) of title 10 or section 3303(d) of this title, as applicable;

23 and

24 (3) shall include in the contract file a written description of the pro25 cedures used in awarding the contract and the number of offers re26 ceived.

27 § 1902. Procedures applicable to purchases below micro-pur28 chase threshold

29 (a) DEFINITION.—For purposes of this section, the micro-purchase

30 threshold is $2,500.

31 (b) COMPLIANCE WITH CERTAIN REQUIREMENTS AND NONAPPLICA32 BILITY OF CERTAIN AUTHORITY.—

33 (1) COMPLIANCE WITH CERTAIN REQUIREMENTS.—The head of each

34 executive agency shall ensure that procuring activities of that agency,

35 when awarding a contract with a price exceeding the micro-purchase

36 threshold, comply with the requirements of section 8(a) of the Small

37 Business Act (15 U.S.C. 637(a)), section 2323 of title 10, and section

38 7102 of the Federal Acquisition Streamlining Act of 1994 (Public Law

39 103–355, 15 U.S.C. 644 note).

40 (2) NONAPPLICABILITY OF CERTAIN AUTHORITY.—The authority

41 under part 13.106(a)(1) of the Federal Acquisition Regulation (48

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1 C.F.R. 13.106(a)(1)), as in effect on November 18, 1993, to make pur2 chases without securing competitive quotations does not apply to a pur3 chase with a price exceeding the micro-purchase threshold.

4 (c) NONAPPLICABILITY OF CERTAIN PROVISIONS.—An executive agency

5 purchase with an anticipated value of the micro-purchase threshold or less

6 is not subject to section 15(j) of the Small Business Act (15 U.S.C. 644(j))

7 and chapter 83 of this title.

8 (d) PURCHASES WITHOUT COMPETITIVE QUOTATIONS.—A purchase not

9 greater than $2,500 may be made without obtaining competitive quotations

10 if an employee of an executive agency or a member of the armed forces,

11 authorized to do so, determines that the price for the purchase is reason12 able.

13 (e) EQUITABLE DISTRIBUTION.—Purchases not greater than $2,500 shall

14 be distributed equitably among qualified suppliers.

15 (f) IMPLEMENTATION THROUGH FEDERAL ACQUISITION REGULATION.—

16 This section shall be implemented through the Federal Acquisition Regula17 tion.

18 § 1903. Special emergency procurement authority

19 (a) APPLICABILITY.—The authorities provided in subsections (b) and (c)

20 apply with respect to a procurement of property or services by or for an

21 executive agency that the head of the executive agency determines are to

22 be used—

23 (1) in support of a contingency operation (as defined in section

24 101(a) of title 10); or

25 (2) to facilitate the defense against or recovery from nuclear, biologi26 cal, chemical, or radiological attack against the United States.

27 (b) INCREASED THRESHOLDS AND LIMITATION.—For a procurement to

28 which this section applies under subsection (a)—

29 (1) the amount specified in section 1902(a), (d), and (e) of this title

30 shall be deemed to be—

31 (A) $15,000 in the case of a contract to be awarded and per32 formed, or purchase to be made, in the United States; and

33 (B) $25,000 in the case of a contract to be awarded and per34 formed, or purchase to be made, outside the United States;

35 (2) the term ‘‘simplified acquisition threshold’’ means—

36 (A) $250,000 in the case of a contract to be awarded and per37 formed, or purchase to be made, in the United States; and

38 (B) $1,000,000 in the case of a contract to be awarded and per39 formed, or purchase to be made, outside the United States; and

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1 (3) the $5,000,000 limitation in sections 1901(a)(2) and 3304(a)(2)

2 of this title and section 2304(g)(1)(B) of title 10 is deemed to be

3 $10,000,000.

4 (c) AUTHORITY TO TREAT PROPERTY OR SERVICE AS COMMERCIAL

5 ITEM.—

6 (1) IN GENERAL.—The head of an executive agency carrying out a

7 procurement of property or a service to which this section applies under

8 subsection (a)(2) may treat the property or service as a commercial

9 item for the purpose of carrying out the procurement.

10 (2) CERTAIN CONTRACTS NOT EXEMPT FROM STANDARDS OR RE11 QUIREMENTS.—A contract in an amount of more than $15,000,000

12 that is awarded on a sole source basis for an item or service treated

13 as a commercial item under paragraph (1) is not exempt from—

14 (A) cost accounting standards prescribed under section 1502 of

15 this title; or

16 (B) cost or pricing data requirements (commonly referred to as

17 truth in negotiating) under chapter 35 of this title and section

18 2306a of title 10.

19 § 1904. Certain transactions for defense against attack

20 (a) AUTHORITY.—

21 (1) IN GENERAL.—The head of an executive agency that engages in

22 basic research, applied research, advanced research, and development

23 projects that are necessary to the responsibilities of the executive agen24 cy in the field of research and development and have the potential to

25 facilitate defense against or recovery from terrorism or nuclear, biologi26 cal, chemical, or radiological attack may exercise the same authority

27 (subject to the same restrictions and conditions) with respect to the re28 search and projects as the Secretary of Defense may exercise under

29 section 2371 of title 10, except for subsections (b) and (f) of section

30 2371.

31 (2) PROTOTYPE PROJECTS.—The head of an executive agency, under

32 the authority of paragraph (1), may carry out prototype projects that

33 meet the requirements of paragraph (1) in accordance with the require34 ments and conditions provided for carrying out prototype projects

35 under section 845 of the National Defense Authorization Act for Fiscal

36 Year 1994 (Public Law 103–160, 10 U.S.C. 2371 note), including

37 that, to the maximum extent practicable, competitive procedures shall

38 be used when entering into agreements to carry out projects under sec39 tion 845(a) of that Act and that the period of authority to carry out

40 projects under section 845(a) of that Act terminates as provided in sec41 tion 845(g) of that Act.

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1 (3) APPLICATION OF REQUIREMENTS AND CONDITIONS.—In applying

2 the requirements and conditions of section 845 of that Act under this

3 subsection—

4 (A) section 845(c) of that Act shall apply with respect to proto5 type projects carried out under paragraph (2); and

6 (B) the Director of the Office of Management and Budget shall

7 perform the functions of the Secretary of Defense under section

8 845(d) of that Act.

9 (4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES.—

10 (A) OFFICE OF MANAGEMENT AND BUDGET.—The head of an

11 executive agency may exercise authority under this subsection for

12 a project only if authorized by the Director of the Office of Man13 agement and Budget.

14 (B) DEPARTMENT OF HOMELAND SECURITY.—Authority under

15 this subsection does not apply to the Secretary of Homeland Secu16 rity while section 831 of the Homeland Security Act of 2002 (6

17 U.S.C. 391) is in effect.

18 (b) REGULATIONS.—The Director of the Office of Management and

19 Budget shall prescribe regulations to carry out this section. No transaction

20 may be conducted under the authority of this section before the regulations

21 take effect.

22 (c) ANNUAL REPORT.—The annual report of the head of an executive

23 agency that is required under section 2371(h) of title 10, as applied to the

24 head of the executive agency by subsection (a), shall be submitted to the

25 Committee on Homeland Security and Governmental Affairs of the Senate

26 and the Committee on Government Reform of the House of Representatives.

27 (d) TERMINATION OF AUTHORITY.—The authority to carry out trans28 actions under subsection (a) terminates on September 30, 2008.

29 § 1905. List of laws inapplicable to contracts or subcontracts

30 not greater than simplified acquisition threshold

31 (a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning

32 given that term in section 1301 of this title.

33 (b) INCLUSION IN FEDERAL ACQUISITION REGULATION.—

34 (1) IN GENERAL.—The Federal Acquisition Regulation shall include

35 a list of provisions of law that are inapplicable to contracts or sub36 contracts in amounts not greater than the simplified acquisition thresh37 old. A provision of law properly included on the list pursuant to para38 graph (2) does not apply to contracts or subcontracts in amounts not

39 greater than the simplified acquisition threshold that are made by an

40 executive agency. This section does not render a provision of law not

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1 included on the list inapplicable to contracts and subcontracts in

2 amounts not greater than the simplified acquisition threshold.

3 (2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of law

4 described in subsection (c) that is enacted after October 13, 1994, shall

5 be included on the list of inapplicable provisions of laws required by

6 paragraph (1) unless the Council makes a written determination that

7 it would not be in the best interest of the Federal Government to ex8 empt contracts or subcontracts in amounts not greater than the sim9 plified acquisition threshold from the applicability of the provision.

10 (c) COVERED LAW.—A provision of law referred to in subsection (b)(2)

11 is a provision of law that the Council determines sets forth policies, proce12 dures, requirements, or restrictions for the procurement of property or serv13 ices by the Federal Government, except for a provision of law that—

14 (1) provides for criminal or civil penalties; or

15 (2) specifically refers to this section and provides that, notwith16 standing this section, it shall be applicable to contracts or subcontracts

17 in amounts not greater than the simplified acquisition threshold.

18 (d) PETITION.—A person may petition the Administrator to take appro19 priate action when a provision of law described in subsection (c) is not in20 cluded on the list of inapplicable provisions of law as required by subsection

21 (b) and the Council has not made a written determination pursuant to sub22 section (b)(2). The Administrator shall revise the Federal Acquisition Regu23 lation to include the provision on the list of inapplicable provisions of law

24 unless the Council makes a determination pursuant to subsection (b)(2)

25 within 60 days after the petition is received.

26 § 1906. List of laws inapplicable to procurements of commer27 cial items

28 (a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning

29 given that term in section 1301 of this title.

30 (b) CONTRACTS.—

31 (1) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The Fed32 eral Acquisition Regulation shall include a list of provisions of law that

33 are inapplicable to contracts for the procurement of commercial items.

34 A provision of law properly included on the list pursuant to paragraph

35 (2) does not apply to purchases of commercial items by an executive

36 agency. This section does not render a provision of law not included

37 on the list inapplicable to contracts for the procurement of commercial

38 items.

39 (2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of law

40 described in subsection (d) that is enacted after October 13, 1994,

41 shall be included on the list of inapplicable provisions of law required

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1 by paragraph (1) unless the Council makes a written determination

2 that it would not be in the best interest of the Federal Government

3 to exempt contracts for the procurement of commercial items from the

4 applicability of the provision.

5 (c) SUBCONTRACTS.—

6 (1) DEFINITION.—In this subsection, the term ‘‘subcontract’’ in7 cludes a transfer of commercial items between divisions, subsidiaries,

8 or affiliates of a contractor or subcontractor.

9 (2) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The Fed10 eral Acquisition Regulation shall include a list of provisions of law that

11 are inapplicable to subcontracts under a contract or subcontract for the

12 procurement of commercial items. A provision of law properly included

13 on the list pursuant to paragraph (3) does not apply to those sub14 contracts. This section does not render a provision of law not included

15 on the list inapplicable to subcontracts under a contract for the pro16 curement of commercial items.

17 (3) PROVISIONS TO BE EXCLUDED FROM LIST.—A provision of law

18 described in subsection (d) shall be included on the list of inapplicable

19 provisions of law required by paragraph (2) unless the Council makes

20 a written determination that it would not be in the best interest of the

21 Federal Government to exempt subcontracts under a contract for the

22 procurement of commercial items from the applicability of the provi23 sion.

24 (4) WAIVER NOT AUTHORIZED.—This subsection does not authorize

25 the waiver of the applicability of any provision of law with respect to

26 any subcontract under a contract with a prime contractor reselling or

27 distributing commercial items of another contractor without adding

28 value.

29 (d) COVERED LAW.—A provision of law referred to in subsections (b)(2)

30 and (c) is a provision of law that the Council determines sets forth policies,

31 procedures, requirements, or restrictions for the procurement of property or

32 services by the Federal Government, except for a provision of law that—

33 (1) provides for criminal or civil penalties; or

34 (2) specifically refers to this section and provides that, notwith35 standing this section, it shall be applicable to contracts for the procure36 ment of commercial items.

37 (e) PETITION.—A person may petition the Administrator to take appro38 priate action when a provision of law described in subsection (d) is not in39 cluded on the list of inapplicable provisions of law as required by subsection

40 (b) or (c) and the Council has not made a written determination pursuant

41 to subsection (b)(2) or (c)(3). The Administrator shall revise the Federal

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1 Acquisition Regulation to include the provision on the list of inapplicable

2 provisions of law unless the Council makes a determination pursuant to sub3 section (b)(2) or (c)(3) within 60 days after the petition is received.

4 § 1907. List of laws inapplicable to procurements of commer5 cially available off-the-shelf items

6 (a) INCLUSION IN FEDERAL ACQUISITION REGULATION.—

7 (1) IN GENERAL.—The Federal Acquisition Regulation shall include

8 a list of provisions of law that are inapplicable to contracts for the pro9 curement of commercially available off-the-shelf items. A provision of

10 law properly included on the list pursuant to paragraph (2) does not

11 apply to contracts for the procurement of commercially available off12 the-shelf items. This section does not render a provision of law not in13 cluded on the list inapplicable to contracts for the procurement of com14 mercially available off-the-shelf items.

15 (2) LAWS TO BE INCLUDED.—A provision of law described in sub16 section (b) shall be included on the list of inapplicable provisions of law

17 required by paragraph (1) unless the Administrator makes a written

18 determination that it would not be in the best interest of the Federal

19 Government to exempt contracts for the procurement of commercially

20 available off-the-shelf items from the applicability of the provision.

21 (3) OTHER AUTHORITIES OR RESPONSIBILITIES NOT AFFECTED.—

22 This section does not modify, supersede, impair, or restrict authorities

23 or responsibilities under—

24 (A) section 15 of the Small Business Act (15 U.S.C. 644); or

25 (B) bid protest procedures developed under the authority of—

26 (i) subchapter V of chapter 35 of title 31;

27 (ii) section 2305(e) and (f) of title 10; or

28 (iii) sections 3706 and 3707 of this title.

29 (b) COVERED LAW.—Except as provided in subsection (a)(3), a provision

30 of law referred to in subsection (a)(1) is a provision of law that the Admin31 istrator determines imposes Federal Government-unique policies, proce32 dures, requirements, or restrictions for the procurement of property or serv33 ices on persons whom the Federal Government has awarded contracts for

34 the procurement of commercially available off-the-shelf items, except for a

35 provision of law that—

36 (1) provides for criminal or civil penalties; or

37 (2) specifically refers to this section and provides that, notwith38 standing this section, it shall be applicable to contracts for the procure39 ment of commercially available off-the-shelf items.

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1 § 1908. Inflation adjustment of acquisition-related dollar

2 thresholds

3 (a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning

4 given that term in section 1301 of this title.

5 (b) APPLICATION.—

6 (1) IN GENERAL.—Except as provided in paragraph (2), the require7 ment for adjustment under subsection (c) applies to a dollar threshold

8 that is specified in law as a factor in defining the scope of the applica9 bility of a policy, procedure, requirement, or restriction provided in that

10 law to the procurement of property or services by an executive agency,

11 as the Council determines.

12 (2) EXCEPTIONS.—Subsection (c) does not apply to dollar

13 thresholds—

14 (A) in chapter 67 of this title;

15 (B) in sections 3141 to 3144, 3146, and 3147 of title 40; or

16 (C) the United States Trade Representative establishes pursu17 ant to title III of the Trade Agreements Act of 1979 (19 U.S.C.

18 2511 et seq.).

19 (3) RELATIONSHIP TO OTHER INFLATION ADJUSTMENT AUTHORI20 TIES.—This section supersedes the applicability of other provisions of

21 law that provide for the adjustment of a dollar threshold that is adjust22 able under this section.

23 (c) REQUIREMENT FOR PERIODIC ADJUSTMENT.—

24 (1) BASELINE CONSTANT DOLLAR VALUE.—For purposes of para25 graph (2), the baseline constant dollar value for a dollar threshold—

26 (A) in effect on October 1, 2000, that was first specified in a

27 law that took effect on or before October 1, 2000, is the October

28 1, 2000, constant dollar value of that dollar threshold; and

29 (B) specified in a law that takes effect after October 1, 2000,

30 is the constant dollar value of that threshold as of the effective

31 date of that dollar threshold pursuant to that law.

32 (2) ADJUSTMENT.—On October 1 of each year evenly divisible by 5,

33 the Council shall adjust each acquisition-related dollar threshold pro34 vided by law, as described in subsection (b)(1), to the baseline constant

35 dollar value of that threshold.

36 (3) EXCLUSIVE MEANS OF ADJUSTMENT.—A dollar threshold adjust37 able under this section shall be adjusted only as provided in this sec38 tion.

39 (d) PUBLICATION.—The Council shall publish a notice of the adjusted

40 dollar thresholds under this section in the Federal Register. The thresholds

41 take effect on the date of publication.

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1 (e) CALCULATION.—An adjustment under this section shall be—

2 (1) calculated on the basis of changes in the Consumer Price Index

3 for all-urban consumers published monthly by the Secretary of Labor;

4 and

5 (2) rounded, in the case of a dollar threshold that on the day before

6 the adjustment is—

7 (A) less than $10,000, to the nearest $500;

8 (B) not less than $10,000, but less than $100,000, to the near9 est $5,000;

10 (C) not less than $100,000, but less than $1,000,000, to the

11 nearest $50,000; and

12 (D) $1,000,000 or more, to the nearest $500,000.

13 (f) PETITION FOR INCLUSION OF OMITTED THRESHOLD.—

14 (1) PETITION SUBMITTED TO ADMINISTRATOR.—A person may re15 quest adjustment of a dollar threshold adjustable under this section

16 that is not included in a notice of adjustment published under sub17 section (d) by submitting a petition for adjustment to the Adminis18 trator.

19 (2) ACTIONS OF ADMINISTRATOR.—On receipt of a petition for ad20 justment of a dollar threshold under paragraph (1), the

21 Administrator—

22 (A) shall determine, in writing, whether the dollar threshold is

23 required to be adjusted under this section; and

24 (B) on determining that it should be adjusted, shall publish in

25 the Federal Register a revised notice of the adjustment dollar

26 thresholds under this section that includes the adjustment of the

27 dollar threshold covered by the petition.

28 (3) EFFECTIVE DATE OF ADJUSTMENT BY PETITION.—The adjust29 ment of a dollar threshold pursuant to a petition under this subsection

30 takes effect on the date the revised notice adding the adjustment under

31 paragraph (2)(B) is published.

32 CHAPTER 21—RESTRICTIONS ON OBTAINING AND

33 DISCLOSING CERTAIN INFORMATION

Sec.

2101. Definitions.

2102. Prohibitions on disclosing and obtaining procurement information.

2103. Actions required of procurement officers when contacted regarding non-Federal employment.

2104. Prohibition on former official’s acceptance of compensation from contractor.

2105. Penalties and administrative actions.

2106. Reporting information believed to constitute evidence of offense.

2107. Savings provisions.

34 § 2101. Definitions

35 In this chapter:

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1 (1) CONTRACTING OFFICER.—The term ‘‘contracting officer’’ means

2 an individual who, by appointment in accordance with applicable regu3 lations, has the authority to enter into a Federal agency procurement

4 contract on behalf of the Government and to make determinations and

5 findings with respect to the contract.

6 (2) CONTRACTOR BID OR PROPOSAL INFORMATION.—The term ‘‘con7 tractor bid or proposal information’’ means any of the following infor8 mation submitted to a Federal agency as part of, or in connection with,

9 a bid or proposal to enter into a Federal agency procurement contract,

10 if that information previously has not been made available to the public

11 or disclosed publicly:

12 (A) Cost or pricing data (as defined in section 2306a(h) of title

13 10 with respect to procurements subject to that section and sec14 tion 3501 of this title with respect to procurements subject to that

15 section).

16 (B) Indirect costs and direct labor rates.

17 (C) Proprietary information about manufacturing processes, op18 erations, or techniques marked by the contractor in accordance

19 with applicable law or regulation.

20 (D) Information marked by the contractor as ‘‘contractor bid or

21 proposal information’’, in accordance with applicable law or regu22 lation.

23 (3) FEDERAL AGENCY.—The term ‘‘Federal agency’’ has the mean24 ing given that term in section 102 of title 40.

25 (4) FEDERAL AGENCY PROCUREMENT.—The term ‘‘Federal agency

26 procurement’’ means the acquisition (by using competitive procedures

27 and awarding a contract) of goods or services (including construction)

28 from non-Federal sources by a Federal agency using appropriated

29 amounts.

30 (5) OFFICIAL.—The term ‘‘official’’ means—

31 (A) an officer, as defined in section 2104 of title 5;

32 (B) an employee, as defined in section 2105 of title 5; and

33 (C) a member of the uniformed services, as defined in section

34 2101(3) of title 5.

35 (6) PROTEST.—The term ‘‘protest’’ means a written objection by an

36 interested party to the award or proposed award of a Federal agency

37 procurement contract, pursuant to subchapter V of chapter 35 of title

38 31.

39 (7) SOURCE SELECTION INFORMATION.—The term ‘‘source selection

40 information’’ means any of the following information prepared for use

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1 eral agency procurement contract, if that information previously has

2 not been made available to the public or disclosed publicly:

3 (A) Bid prices submitted in response to a Federal agency solici4 tation for sealed bids, or lists of those bid prices before public bid

5 opening.

6 (B) Proposed costs or prices submitted in response to a Federal

7 agency solicitation, or lists of those proposed costs or prices.

8 (C) Source selection plans.

9 (D) Technical evaluation plans.

10 (E) Technical evaluations of proposals.

11 (F) Cost or price evaluations of proposals.

12 (G) Competitive range determinations that identify proposals

13 that have a reasonable chance of being selected for award of a

14 contract.

15 (H) Rankings of bids, proposals, or competitors.

16 (I) Reports and evaluations of source selection panels, boards,

17 or advisory councils.

18 (J) Other information marked as ‘‘source selection information’’

19 based on a case-by-case determination by the head of the agency,

20 the head’s designee, or the contracting officer that its disclosure

21 would jeopardize the integrity or successful completion of the Fed22 eral agency procurement to which the information relates.

23 § 2102. Prohibitions on disclosing and obtaining procure24 ment information

25 (a) PROHIBITION ON DISCLOSING PROCUREMENT INFORMATION.—

26 (1) IN GENERAL.—Except as provided by law, a person described in

27 paragraph (3) shall not knowingly disclose contractor bid or proposal

28 information or source selection information before the award of a Fed29 eral agency procurement contract to which the information relates.

30 (2) EMPLOYEE OF PRIVATE SECTOR ORGANIZATION.—In addition to

31 the restriction in paragraph (1), an employee of a private sector organi32 zation assigned to an agency under chapter 37 of title 5 shall not

33 knowingly disclose contractor bid or proposal information or source se34 lection information during the 3-year period after the employee’s as35 signment ends, except as provided by law.

36 (3) APPLICATION.—Paragraph (1) applies to a person that—

37 (A)(i) is a present or former official of the Federal Government;

38 or

39 (ii) is acting or has acted for or on behalf of, or who is advising

40 or has advised the Federal Government with respect to, a Federal

41 agency procurement; and

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1 (B) by virtue of that office, employment, or relationship has or

2 had access to contractor bid or proposal information or source se3 lection information.

4 (b) PROHIBITION ON OBTAINING PROCUREMENT INFORMATION.—Except

5 as provided by law, a person shall not knowingly obtain contractor bid or

6 proposal information or source selection information before the award of a

7 Federal agency procurement contract to which the information relates.

8 § 2103. Actions required of procurement officers when con9 tacted regarding non-Federal employment

10 (a) ACTIONS REQUIRED.—An agency official participating personally and

11 substantially in a Federal agency procurement for a contract in excess of

12 the simplified acquisition threshold who contacts or is contacted by a person

13 that is a bidder or offeror in that Federal agency procurement regarding

14 possible non-Federal employment for that official shall—

15 (1) promptly report the contact in writing to the official’s supervisor

16 and to the designated agency ethics official (or designee) of the agency

17 in which the official is employed; and

18 (2)(A) reject the possibility of non-Federal employment; or

19 (B) disqualify himself or herself from further personal and substan20 tial participation in that Federal agency procurement until the agency

21 authorizes the official to resume participation in the procurement, in

22 accordance with the requirements of section 208 of title 18 and appli23 cable agency regulations on the grounds that—

24 (i) the person is no longer a bidder or offeror in that Federal

25 agency procurement; or

26 (ii) all discussions with the bidder or offeror regarding possible

27 non-Federal employment have terminated without an agreement or

28 arrangement for employment.

29 (b) RETENTION OF REPORTS.—The agency shall retain each report re30 quired by this section for not less than 2 years following the submission of

31 the report. The reports shall be made available to the public on request, ex32 cept that any part of a report that is exempt from the disclosure require33 ments of section 552(b)(1) of title 5 may be withheld from disclosure to the

34 public.

35 (c) PERSONS SUBJECT TO PENALTIES.—The following are subject to the

36 penalties and administrative actions set forth in section 2105 of this title:

37 (1) An official who knowingly fails to comply with the requirements

38 of this section.

39 (2) A bidder or offeror that engages in employment discussions with

40 an official who is subject to the restrictions of this section, knowing

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1 that the official has not complied with paragraph (1) or (2) of sub2 section (a).

3 § 2104. Prohibition on former official’s acceptance of com4 pensation from contractor

5 (a) PROHIBITION.—A former official of a Federal agency may not accept

6 compensation from a contractor as an employee, officer, director, or consult7 ant of the contractor within one year after the official—

8 (1) served, when the contractor was selected or awarded a contract,

9 as the procuring contracting officer, the source selection authority, a

10 member of the source selection evaluation board, or the chief of a fi11 nancial or technical evaluation team in a procurement in which that

12 contractor was selected for award of a contract in excess of

13 $10,000,000;

14 (2) served as the program manager, deputy program manager, or ad15 ministrative contracting officer for a contract in excess of $10,000,000

16 awarded to that contractor; or

17 (3) personally made for the Federal agency a decision to—

18 (A) award a contract, subcontract, modification of a contract or

19 subcontract, or a task order or delivery order in excess of

20 $10,000,000 to that contractor;

21 (B) establish overhead or other rates applicable to one or more

22 contracts for that contractor that are valued in excess of

23 $10,000,000;

24 (C) approve issuance of one or more contract payments in ex25 cess of $10,000,000 to that contractor; or

26 (D) pay or settle a claim in excess of $10,000,000 with that

27 contractor.

28 (b) WHEN COMPENSATION MAY BE ACCEPTED.—Subsection (a) does not

29 prohibit a former official of a Federal agency from accepting compensation

30 from a division or affiliate of a contractor that does not produce the same

31 or similar products or services as the entity of the contractor that is respon32 sible for the contract referred to in paragraph (1), (2), or (3) of subsection

33 (a).

34 (c) IMPLEMENTING REGULATIONS.—Regulations implementing this sec35 tion shall include procedures for an official or former official of a Federal

36 agency to request advice from the appropriate designated agency ethics offi37 cial regarding whether the official or former official is or would be precluded

38 by this section from accepting compensation from a particular contractor.

39 (d) PERSONS SUBJECT TO PENALTIES.—The following are subject to the

40 penalties and administrative actions set forth in section 2105 of this title:

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1 (1) A former official who knowingly accepts compensation in viola2 tion of this section.

3 (2) A contractor that provides compensation to a former official

4 knowing that the official accepts the compensation in violation of this

5 section.

6 § 2105. Penalties and administrative actions

7 (a) CRIMINAL PENALTIES.—A person that violates section 2102 of this

8 title to exchange information covered by section 2102 of this title for any9 thing of value or to obtain or give a person a competitive advantage in the

10 award of a Federal agency procurement contract shall be fined under title

11 18, imprisoned for not more than 5 years, or both.

12 (b) CIVIL PENALTIES.—The Attorney General may bring a civil action in

13 an appropriate district court of the United States against a person that en14 gages in conduct that violates section 2102, 2103, or 2104 of this title. On

15 proof of that conduct by a preponderance of the evidence—

16 (1) an individual is liable to the Federal Government for a civil pen17 alty of not more than $50,000 for each violation plus twice the amount

18 of compensation that the individual received or offered for the prohib19 ited conduct; and

20 (2) an organization is liable to the Federal Government for a civil

21 penalty of not more than $500,000 for each violation plus twice the

22 amount of compensation that the organization received or offered for

23 the prohibited conduct.

24 (c) ADMINISTRATIVE ACTIONS.—

25 (1) TYPES OF ACTION THAT FEDERAL AGENCY MAY TAKE.—A Fed26 eral agency that receives information that a contractor or a person has

27 violated section 2102, 2103, or 2104 of this title shall consider taking

28 one or more of the following actions, as appropriate:

29 (A) Canceling the Federal agency procurement, if a contract has

30 not yet been awarded.

31 (B) Rescinding a contract with respect to which—

32 (i) the contractor or someone acting for the contractor has

33 been convicted for an offense punishable under subsection (a);

34 or

35 (ii) the head of the agency that awarded the contract has

36 determined, based on a preponderance of the evidence, that

37 the contractor or a person acting for the contractor has en38 gaged in conduct constituting the offense.

39 (C) Initiating a suspension or debarment proceeding for the pro40 tection of the Federal Government in accordance with procedures

41 in the Federal Acquisition Regulation.

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1 (D) Initiating an adverse personnel action, pursuant to the pro2 cedures in chapter 75 of title 5 or other applicable law or regula3 tion.

4 (2) AMOUNT GOVERNMENT ENTITLED TO RECOVER.—When a Fed5 eral agency rescinds a contract pursuant to paragraph (1)(B), the Fed6 eral Government is entitled to recover, in addition to any penalty pre7 scribed by law, the amount expended under the contract.

8 (3) PRESENT RESPONSIBILITY AFFECTED BY CONDUCT.—For pur9 poses of a suspension or debarment proceeding initiated pursuant to

10 paragraph (1)(C), engaging in conduct constituting an offense under

11 section 2102, 2103, or 2104 of this title affects the present responsi12 bility of a Federal Government contractor or subcontractor.

13 § 2106. Reporting information believed to constitute evi14 dence of offense

15 A person may not file a protest against the award or proposed award of

16 a Federal agency procurement contract alleging a violation of section 2102,

17 2103, or 2104 of this title, and the Comptroller General may not consider

18 that allegation in deciding a protest, unless the person, no later than 14

19 days after the person first discovered the possible violation, reported to the

20 Federal agency responsible for the procurement the information that the

21 person believed constitutes evidence of the offense.

22 § 2107. Savings provisions

23 This chapter does not—

24 (1) restrict the disclosure of information to, or its receipt by, a per25 son or class of persons authorized, in accordance with applicable agency

26 regulations or procedures, to receive that information;

27 (2) restrict a contractor from disclosing its own bid or proposal in28 formation or the recipient from receiving that information;

29 (3) restrict the disclosure or receipt of information relating to a Fed30 eral agency procurement after it has been canceled by the Federal

31 agency before contract award unless the Federal agency plans to re32 sume the procurement;

33 (4) prohibit individual meetings between a Federal agency official

34 and an offeror or potential offeror for, or a recipient of, a contract or

35 subcontract under a Federal agency procurement, provided that unau36 thorized disclosure or receipt of contractor bid or proposal information

37 or source selection information does not occur;

38 (5) authorize the withholding of information from, nor restrict its re39 ceipt by, Congress, a committee or subcommittee of Congress, the

40 Comptroller General, a Federal agency, or an inspector general of a

41 Federal agency;

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1 (6) authorize the withholding of information from, nor restrict its re2 ceipt by, the Comptroller General in the course of a protest against the

3 award or proposed award of a Federal agency procurement contract;

4 or

5 (7) limit the applicability of a requirement, sanction, contract pen6 alty, or remedy established under another law or regulation.

7 CHAPTER 23—MISCELLANEOUS

Sec.

2301. Use of electronic commerce in Federal procurement.

2302. Rights in technical data.

2303. Conflict of interest standards for consultants.

2304. Authority of Director of Office of Management and Budget not affected.

2305. Openness of meetings.

2306. Comptroller General’s access to information.

2307. Modular contracting for information technology.

2308. Protection of constitutional rights of contractors.

2309. Performance-based contracts or task orders for services to be treated as contracts for

the procurement of commercial items.

8 § 2301. Use of electronic commerce in Federal procurement

9 (a) DEFINITION.—For the purposes of this section, the term ‘‘electronic

10 commerce’’ means electronic techniques for accomplishing business trans11 actions, including electronic mail or messaging, World Wide Web technology,

12 electronic bulletin boards, purchase cards, electronic funds transfers, and

13 electronic data interchange.

14 (b) ESTABLISHMENT, MAINTENANCE, AND USE OF ELECTRONIC COM15 MERCE PROCEDURES AND PROCESSES.—The head of each executive agency,

16 after consulting with the Administrator, shall establish, maintain, and use,

17 to the maximum extent that is practicable and cost-effective, procedures and

18 processes that employ electronic commerce in the conduct and administra19 tion of the procurement system of the agency.

20 (c) APPLICABLE STANDARDS.—In conducting electronic commerce, the

21 head of an executive agency shall apply nationally and internationally recog22 nized standards that broaden interoperability and ease the electronic inter23 change of information.

24 (d) REQUIREMENTS OF SYSTEMS, TECHNOLOGIES, PROCEDURES, AND

25 PROCESSES.—The head of each executive agency shall ensure that systems,

26 technologies, procedures, and processes established pursuant to this

27 section—

28 (1) are implemented with uniformity throughout the agency, to the

29 extent practicable;

30 (2) are implemented only after granting due consideration to the use

31 or partial use, as appropriate, of existing electronic commerce and elec32 tronic data interchange systems and infrastructures such as the Fed33 eral acquisition computer network architecture known as FACNET;

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1 (3) facilitate access to Federal Government procurement opportuni2 ties, including opportunities for small business concerns, socially and

3 economically disadvantaged small business concerns, and business con4 cerns owned predominantly by women; and

5 (4) ensure that any notice of agency requirements or agency solicita6 tion for contract opportunities is provided in a form that allows conven7 ient and universal user access through a single, Government-wide point

8 of entry.

9 (e) IMPLEMENTATION.—In carrying out the requirements of this section,

10 the Administrator shall—

11 (1) issue policies to promote, to the maximum extent practicable,

12 uniform implementation of this section by executive agencies, with due

13 regard for differences in program requirements among agencies that

14 may require departures from uniform procedures and processes in ap15 propriate cases, when warranted because of the agency mission;

16 (2) ensure that the head of each executive agency complies with the

17 requirements of subsection (d); and

18 (3) consult with the heads of appropriate Federal agencies with ap19 plicable technical and functional expertise, including the Office of In20 formation and Regulatory Affairs, the National Institute of Standards

21 and Technology, the General Services Administration, and the Depart22 ment of Defense.

23 § 2302. Rights in technical data

24 (a) WHERE DEFINED.—The legitimate proprietary interest of the Federal

25 Government and of a contractor in technical or other data shall be defined

26 in regulations prescribed as part of the Federal Acquisition Regulation.

27 (b) GENERAL EXTENT OF REGULATIONS.—

28 (1) OTHER RIGHTS NOT IMPAIRED.—Regulations prescribed under

29 subsection (a) may not impair a right of the Federal Government or

30 of a contractor with respect to a patent or copyright or another right

31 in technical data otherwise established by law.

32 (2) LIMITATION ON REQUIRING DATA BE PROVIDED TO THE GOV33 ERNMENT.—With respect to executive agencies subject to part C, regu34 lations prescribed under subsection (a) shall provide that the Federal

35 Government may not require a person that has developed a product or

36 process offered or to be offered for sale to the public, as a condition

37 for the Federal Government to procure the product or process, to pro38 vide to the Federal Government technical data relating to the design,

39 development, or manufacture of the product or process. This paragraph

40 does not apply to data that may be necessary for the Federal Govern41 ment to operate and maintain the product or use the process if the

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1 Federal Government obtains it as an element of performance under the

2 contract.

3 (c) TECHNICAL DATA DEVELOPED WITH FEDERAL FUNDS.—

4 (1) USE BY GOVERNMENT AND AGENCIES.—Except as otherwise ex5 pressly provided by Federal statute, with respect to executive agencies

6 subject to part C, regulations prescribed under subsection (a) shall pro7 vide that—

8 (A) the Federal Government has unlimited rights in technical

9 data developed exclusively with Federal funds if delivery of the

10 data—

11 (i) was required as an element of performance under a con12 tract; and

13 (ii) is needed to ensure the competitive acquisition of sup14 plies or services that will be required in substantial quantities

15 in the future; and

16 (B) the Federal Government and each agency of the Federal

17 Government has an unrestricted, royalty-free right to use, or to

18 have its contractors use, for governmental purposes (excluding

19 publication outside the Federal Government) technical data devel20 oped exclusively with Federal funds.

21 (2) REQUIREMENTS IN ADDITION TO OTHER RIGHTS OF THE GOV22 ERNMENT.—The requirements of paragraph (1) are in addition to and

23 not in lieu of any other rights the Federal Government may have pur24 suant to law.

25 (d) FACTORS TO BE CONSIDERED IN PRESCRIBING REGULATIONS.—The

26 following factors shall be considered in prescribing regulations under sub27 section (a):

28 (1) Whether the item or process to which the technical data pertains

29 was developed—

30 (A) exclusively with Federal funds;

31 (B) exclusively at private expense; or

32 (C) in part with Federal funds and in part at private expense.

33 (2) The statement of congressional policy and objectives in section

34 200 of title 35, the statement of purposes in section 2(b) of the Small

35 Business Innovation Development Act of 1982 (Public Law 97–219, 15

36 U.S.C. 638 note), and the declaration of policy in section 2 of the

37 Small Business Act (15 U.S.C. 631).

38 (3) The interest of the Federal Government in increasing competi39 tion and lowering costs by developing and locating alternative sources

40 of supply and manufacture.

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1 (e) PROVISIONS REQUIRED IN CONTRACTS.—Regulations prescribed

2 under subsection (a) shall require that a contract for property or services

3 entered into by an executive agency contain appropriate provisions relating

4 to technical data, including provisions—

5 (1) defining the respective rights of the Federal Government and the

6 contractor or subcontractor (at any tier) regarding technical data to be

7 delivered under the contract;

8 (2) specifying technical data to be delivered under the contract and

9 schedules for delivery;

10 (3) establishing or referencing procedures for determining the ac11 ceptability of technical data to be delivered under the contract;

12 (4) establishing separate contract line items for technical data to be

13 delivered under the contract;

14 (5) to the maximum practicable extent, identifying, in advance of de15 livery, technical data which is to be delivered with restrictions on the

16 right of the Federal Government to use the data;

17 (6) requiring the contractor to revise any technical data delivered

18 under the contract to reflect engineering design changes made during

19 the performance of the contract and affecting the form, fit, and func20 tion of the items specified in the contract and to deliver the revised

21 technical data to an agency within a time specified in the contract;

22 (7) requiring the contractor to furnish written assurance, when tech23 nical data is delivered or is made available, that the technical data is

24 complete and accurate and satisfies the requirements of the contract

25 concerning technical data;

26 (8) establishing remedies to be available to the Federal Government

27 when technical data required to be delivered or made available under

28 the contract is found to be incomplete or inadequate or to not satisfy

29 the requirements of the contract concerning technical data; and

30 (9) authorizing the head of the agency to withhold payments under

31 the contract (or exercise another remedy the head of the agency con32 siders appropriate) during any period if the contractor does not meet

33 the requirements of the contract pertaining to the delivery of technical

34 data.

35 § 2303. Conflict of interest standards for consultants

36 (a) CONTENT OF REGULATIONS.—The Administrator shall prescribe

37 under this part Government-wide regulations that set forth—

38 (1) conflict of interest standards for persons who provide consulting

39 services described in subsection (b); and

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1 (2) procedures, including registration, certification, and enforcement

2 requirements as may be appropriate, to promote compliance with the

3 standards.

4 (b) SERVICES SUBJECT TO REGULATIONS.—Regulations required by sub5 section (a) apply to—

6 (1) advisory and assistance services provided to the Federal Govern7 ment to the extent necessary to identify and evaluate the potential for

8 conflicts of interest that could be prejudicial to the interests of the

9 United States;

10 (2) services related to support of the preparation or submission of

11 bids and proposals for Federal contracts to the extent that inclusion

12 of the services in the regulations is necessary to identify and evaluate

13 the potential for conflicts of interest that could be prejudicial to the

14 interests of the United States; and

15 (3) other services related to Federal contracts as specified in the reg16 ulations prescribed under subsection (a) to the extent necessary to

17 identify and evaluate the potential for conflicts of interest that could

18 be prejudicial to the interests of the United States.

19 (c) INTELLIGENCE ACTIVITIES EXEMPTION.—

20 (1) ACTIVITIES THAT MAY BE EXEMPT.—Intelligence activities as de21 fined in section 3.4(e) of Executive Order No. 12333 or a comparable

22 definitional section in any successor order may be exempt from the reg23 ulations required by subsection (a).

24 (2) REPORT.—The Director of Central Intelligence shall report to

25 the Intelligence and Appropriations Committees of Congress each Jan26 uary 1, delineating the activities and organizations that have been ex27 empted under paragraph (1).

28 (d) PRESIDENTIAL DETERMINATION.—Before the regulations required by

29 subsection (a) are prescribed, the President shall determine if prescribing

30 the regulations will have a significantly adverse effect on the accomplish31 ment of the mission of the Defense Department or another Federal agency.

32 If the President determines that the regulations will have such an adverse

33 effect, the President shall so report to the appropriate committees of the

34 Senate and the House of Representatives, stating in full the reasons for the

35 determination. If such a report is submitted, the requirement for the regula36 tions shall be null and void.

37 § 2304. Authority of Director of Office of Management and

38 Budget not affected

39 This part does not limit the authorities and responsibilities of the Direc40 tor of the Office of Management and Budget in effect on December 1, 1983.

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1 § 2305. Openness of meetings

2 The Administrator by regulation shall require that—

3 (1) formal meetings of the Office of Federal Procurement Policy, as

4 designated by the Administrator, for developing procurement policies

5 and regulations be open to the public; and

6 (2) public notice of each meeting be given not less than 10 days

7 prior to the meeting.

8 § 2306. Comptroller General’s access to information

9 The Administrator and personnel in the Office of Federal Procurement

10 Policy shall furnish information the Comptroller General may require to dis11 charge the responsibilities of the Comptroller General. For this purpose, the

12 Comptroller General or his representatives shall have access to all books,

13 documents, papers, and records of the Office of Federal Procurement Pol14 icy.

15 § 2307. Modular contracting for information technology

16 (a) USE.—To the maximum extent practicable, the head of an executive

17 agency should use modular contracting for an acquisition of a major system

18 of information technology.

19 (b) MODULAR CONTRACTING DESCRIBED.—Under modular contracting,

20 an executive agency’s need for a system is satisfied in successive acquisi21 tions of interoperable increments. Each increment complies with common or

22 commercially accepted standards applicable to information technology so

23 that the increments are compatible with other increments of information

24 technology comprising the system.

25 (c) PROVISIONS IN FEDERAL ACQUISITION REGULATION.—The Federal

26 Acquisition Regulation shall provide that—

27 (1) under the modular contracting process, an acquisition of a major

28 system of information technology may be divided into several smaller

29 acquisition increments that—

30 (A) are easier to manage individually than would be one com31 prehensive acquisition;

32 (B) address complex information technology objectives incre33 mentally in order to enhance the likelihood of achieving workable

34 solutions for attaining those objectives;

35 (C) provide for delivery, implementation, and testing of work36 able systems or solutions in discrete increments, each of which

37 comprises a system or solution that is not dependent on a subse38 quent increment in order to perform its principal functions; and

39 (D) provide an opportunity for subsequent increments of the ac40 quisition to take advantage of any evolution in technology or needs

41 that occurs during conduct of the earlier increments;

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1 (2) to the maximum extent practicable, a contract for an increment

2 of an information technology acquisition should be awarded within 180

3 days after the solicitation is issued and, if the contract for that incre4 ment cannot be awarded within that period, the increment should be

5 considered for cancellation; and

6 (3) the information technology provided for in a contract for acquisi7 tion of information technology should be delivered within 18 months

8 after the solicitation resulting in award of the contract was issued.

9 § 2308. Protection of constitutional rights of contractors

10 (a) PROHIBITION ON REQUIRING WAIVER OF RIGHTS.—A contractor may

11 not be required, as a condition for entering into a contract with the Federal

12 Government, to waive a right under the Constitution for a purpose relating

13 to the Chemical Weapons Convention Implementation Act of 1998 (22

14 U.S.C. 6701 et seq.) or the Chemical Weapons Convention (as defined in

15 section 3 of that Act (22 U.S.C. 6701)).

16 (b) PERMISSIBLE CONTRACT CLAUSES.—Subsection (a) does not prohibit

17 an executive agency from including in a contract a clause that requires the

18 contractor to permit inspections to ensure that the contractor is performing

19 the contract in accordance with the provisions of the contract.

20 § 2309. Performance-based contracts or task orders for serv21 ices to be treated as contracts for the procurement

22 of commercial items

23 (a) CRITERIA.—A performance-based contract for the procurement of

24 services entered into by an executive agency or a performance-based task

25 order for services issued by an executive agency may be treated as a con26 tract for the procurement of commercial items if—

27 (1) the value of the contract or task order is estimated not to exceed

28 $25,000,000;

29 (2) the contract or task order sets forth specifically each task to be

30 performed and, for each task—

31 (A) defines the task in measurable, mission-related terms;

32 (B) identifies the specific end products or output to be achieved;

33 and

34 (C) contains firm, fixed prices for specific tasks to be performed

35 or outcomes to be achieved; and

36 (3) the source of the services provides similar services to the general

37 public under terms and conditions similar to those offered to the Fed38 eral Government.

39 (b) REGULATIONS.—Regulations implementing this section shall require

40 agencies to collect and maintain reliable data sufficient to identify the con41 tracts or task orders treated as contracts for commercial items using the

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1 authority of this section. The data may be collected using the Federal Pro2 curement Data System or other reporting mechanism.

3 (c) REPORT.—Not later than 2 years after November 24, 2003, the Di4 rector of the Office of Management and Budget shall prepare and submit

5 to the Committees on Homeland Security and Governmental Affairs and on

6 Armed Services of the Senate and the Committees on Government Reform

7 and on Armed Services of the House of Representatives a report on the con8 tracts or task orders treated as contracts for commercial items using the

9 authority of this section. The report shall include data on the use of the

10 authority, both government-wide and for each department and agency.

11 (d) EXPIRATION.—The authority under this section expires 10 years after

12 November 24, 2003.

13 PART C—PROCUREMENT

14 CHAPTER 31—GENERAL

Sec.

3101. Applicability.

3102. Delegation and assignment of powers, functions, and responsibilities.

3103. Acquisition programs.

3104. Small business concerns.

3105. New contracts and grants and merit-based selection procedures.

3106. Erection, repair, or furnishing of public buildings and improvements not authorized,

and certain contracts not permitted, by this part.

15 § 3101. Applicability

16 (a) IN GENERAL.—An executive agency shall make purchases and con17 tracts for property and services in accordance with this part and imple18 menting regulations of the Administrator of General Services.

19 (b) SIMPLIFIED ACQUISITION THRESHOLD AND PROCEDURES.—

20 (1) SIMPLIFIED ACQUISITION THRESHOLD.—

21 (A) DEFINITION.—For purposes of an acquisition by an execu22 tive agency, the simplified acquisition threshold is as specified in

23 section 134 of this title.

24 (B) INAPPLICABLE LAWS.—A law properly listed in the Federal

25 Acquisition Regulation pursuant to section 1905 of this title does

26 not apply to or with respect to a contract or subcontract that is

27 not greater than the simplified acquisition threshold.

28 (2) SIMPLIFIED ACQUISITION PROCEDURES.—Simplified acquisition

29 procedures contained in the Federal Acquisition Regulation pursuant to

30 section 1901 of this title apply in executive agencies as provided in sec31 tion 1901.

32 (c) EXCEPTIONS.—

33 (1) IN GENERAL.—This part does not apply—

34 (A) to the Department of Defense, the Coast Guard, and the

35 National Aeronautics and Space Administration; or

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1 (B) except as provided in paragraph (2), when this part is made

2 inapplicable pursuant to law.

3 (2) APPLICABILITY OF CERTAIN LAWS RELATED TO ADVERTISING,

4 OPENING OF BIDS, AND LENGTH OF CONTRACT.—Sections 6101, 6103,

5 and 6304 of this title do not apply to the procurement of property or

6 services made by an executive agency pursuant to this part. However,

7 when this part is made inapplicable by any law, sections 6101 and

8 6103 of this title apply in the absence of authority conferred by statute

9 to procure without advertising or without regard to section 6101 of this

10 title. A law that authorizes an executive agency (other than an execu11 tive agency exempted from this part by this subsection) to procure

12 property or services without advertising or without regard to section

13 6101 of this title is deemed to authorize the procurement pursuant to

14 the provisions of this part relating to procedures other than sealed-bid

15 procedures.

16 § 3102. Delegation and assignment of powers, functions, and

17 responsibilities

18 (a) IN GENERAL.—Except to the extent expressly prohibited by another

19 law, the head of an executive agency may delegate to another officer or offi20 cial of that agency any power under this part.

21 (b) PROCUREMENTS FOR OR WITH ANOTHER AGENCY.—Subject to sub22 section (a), to facilitate the procurement of property and services covered

23 by this part by an executive agency for another executive agency, and to

24 facilitate joint procurement by executive agencies—

25 (1) the head of an executive agency may delegate functions and as26 sign responsibilities relating to procurement to any officer or employee

27 within the agency;

28 (2) the heads of 2 or more executive agencies, consistent with section

29 1535 of title 31 and regulations prescribed under section 1074 of the

30 Federal Acquisition Streamlining Act of 1994 (Public Law 103–355,

31 31 U.S.C. 1535 note), may by agreement delegate procurement func32 tions and assign procurement responsibilities from one executive agency

33 to another of those executive agencies or to an officer or civilian em34 ployee of another of those executive agencies; and

35 (3) the heads of 2 or more executive agencies may establish joint or

36 combined offices to exercise procurement functions and responsibilities.

37 § 3103. Acquisition programs

38 (a) CONGRESSIONAL POLICY.—It is the policy of Congress that the head

39 of each executive agency should achieve, on average, 90 percent of the cost,

40 performance, and schedule goals established for major acquisition programs

41 of the agency.

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1 (b) ESTABLISHMENT OF GOALS.—

2 (1) BY HEAD OF EXECUTIVE AGENCY.—The head of each executive

3 agency shall approve or define the cost, performance, and schedule

4 goals for major acquisition programs of the agency.

5 (2) BY CHIEF FINANCIAL OFFICER.—The chief financial officer of an

6 executive agency shall evaluate the cost goals proposed for each major

7 acquisition program of the agency.

8 (c) IDENTIFICATION OF NONCOMPLIANT PROGRAMS.—When it is nec9 essary to implement the policy set out in subsection (a), the head of an ex10 ecutive agency shall—

11 (1) determine whether there is a continuing need for programs that

12 are significantly behind schedule, over budget, or not in compliance

13 with performance or capability requirements; and

14 (2) identify suitable actions to be taken, including termination, with

15 respect to those programs.

16 § 3104. Small business concerns

17 It is the policy of Congress that a fair proportion of the total purchases

18 and contracts for property and services for the Federal Government shall

19 be placed with small business concerns.

20 § 3105. New contracts and grants and merit-based selection

21 procedures

22 (a) CONGRESSIONAL POLICY.—It is the policy of Congress that—

23 (1) an executive agency should not be required by legislation to

24 award—

25 (A) a new contract to a specific non-Federal Government entity;

26 or

27 (B) a new grant for research, development, test, or evaluation

28 to a non-Federal Government entity; and

29 (2) a program, project, or technology identified in legislation be pro30 cured or awarded through merit-based selection procedures.

31 (b) NEW CONTRACT AND NEW GRANT DESCRIBED.—For purposes of

32 this section—

33 (1) a contract is a new contract unless the work provided for in the

34 contract is a continuation of the work performed by the specified entity

35 under a prior contract; and

36 (2) a grant is a new grant unless the work provided for in the grant

37 is a continuation of the work performed by the specified entity under

38 a prior grant.

39 (c) REQUIREMENTS FOR AWARDING NEW CONTRACT OR NEW GRANT.—

40 A provision of law may not be construed as requiring a new contract or a

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1 new grant to be awarded to a specified non-Federal Government entity un2 less the provision of law specifically—

3 (1) refers to this section;

4 (2) identifies the particular non-Federal Government entity involved;

5 and

6 (3) states that the award to that entity is required by the provision

7 of law in contravention of the policy set forth in subsection (a).

8 (d) EXCEPTION.—This section does not apply to a contract or grant that

9 calls on the National Academy of Sciences to investigate, examine, or experi10 ment on a subject of science or art of significance to an executive agency

11 and to report on those matters to Congress or an agency of the Federal

12 Government.

13 § 3106. Erection, repair, or furnishing of public buildings

14 and improvements not authorized, and certain

15 contracts not permitted, by this part

16 This part does not—

17 (1) authorize the erection, repair, or furnishing of a public building

18 or public improvement; or

19 (2) permit a contract for the construction or repair of a building,

20 road, sidewalk, sewer, main, or similar item using procedures other

21 than sealed-bid procedures under section 3301(b)(1)(A) of this title if

22 the conditions set forth in section 3301(b)(1)(A) of this title apply or

23 the contract is to be performed outside the United States.

24 CHAPTER 33—PLANNING AND SOLICITATION

Sec.

3301. Full and open competition.

3302. Exclusion of particular source or restriction of solicitation to small business concerns.

3303. Use of noncompetitive procedures.

3304. Simplified procedures for small purchases.

3305. Planning and solicitation requirements.

3306. Preference for commercial items.

3307. Planning for future competition in contracts for major systems.

3308. Design-build selection procedures.

3309. Quantities to order.

3310. Qualification requirement.

25 § 3301. Full and open competition

26 (a) IN GENERAL.—Except as provided in sections 3302, 3303(a), and

27 3304 of this title and except in the case of procurement procedures other28 wise expressly authorized by statute, an executive agency in conducting a

29 procurement for property or services shall—

30 (1) obtain full and open competition through the use of competitive

31 procedures in accordance with the requirements of this part and the

32 Federal Acquisition Regulation; and

33 (2) use the competitive procedure or combination of competitive pro34 cedures that is best suited under the circumstances of the procurement.

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1 (b) APPROPRIATE COMPETITIVE PROCEDURES.—

2 (1) USE OF SEALED BIDS.—In determining the competitive proce3 dures appropriate under the circumstance, an executive agency shall—

4 (A) solicit sealed bids if—

5 (i) time permits the solicitation, submission, and evaluation

6 of sealed bids;

7 (ii) the award will be made on the basis of price and other

8 price-related factors;

9 (iii) it is not necessary to conduct discussions with the re10 sponding sources about their bids; and

11 (iv) there is a reasonable expectation of receiving more

12 than one sealed bid; or

13 (B) request competitive proposals if sealed bids are not appro14 priate under subparagraph (A).

15 (2) SEALED BID NOT REQUIRED.—Paragraph (1)(A) does not re16 quire the use of sealed-bid procedures in cases in which section 204(e)

17 of title 23 applies.

18 (c) EFFICIENT FULFILLMENT OF GOVERNMENT REQUIREMENTS.—The

19 Federal Acquisition Regulation shall ensure that the requirement to obtain

20 full and open competition is implemented in a manner that is consistent

21 with the need to efficiently fulfill the Federal Government’s requirements.

22 § 3302. Exclusion of particular source or restriction of solici23 tation to small business concerns

24 (a) EXCLUSION OF PARTICULAR SOURCE.—

25 (1) CRITERIA FOR EXCLUSION.—An executive agency may provide

26 for the procurement of property or services covered by section 3301 of

27 this title using competitive procedures but excluding a particular source

28 to establish or maintain an alternative source of supply for that prop29 erty or service if the agency head determines that to do so would—

30 (A) increase or maintain competition and likely result in re31 duced overall cost for the procurement, or for an anticipated pro32 curement, of the property or services;

33 (B) be in the interest of national defense in having a facility

34 (or a producer, manufacturer, or other supplier) available for fur35 nishing the property or service in case of a national emergency or

36 industrial mobilization;

37 (C) be in the interest of national defense in establishing or

38 maintaining an essential engineering, research, or development ca39 pability to be provided by an educational or other nonprofit insti40 tution or a Federally funded research and development center;

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1 (D) ensure the continuous availability of a reliable source of

2 supply of the property or service;

3 (E) satisfy projected needs for the property or service deter4 mined on the basis of a history of high demand for the property

5 or service; or

6 (F) satisfy a critical need for medical, safety, or emergency sup7 plies.

8 (2) DETERMINATION FOR CLASS DISALLOWED.—A determination

9 under paragraph (1) may not be made for a class of purchases or con10 tracts.

11 (b) EXCLUSION OF OTHER THAN SMALL BUSINESS CONCERNS.—An ex12 ecutive agency may provide for the procurement of property or services cov13 ered by section 3301 of this title using competitive procedures, but exclud14 ing other than small business concerns in furtherance of sections 9 and 15

15 of the Small Business Act (15 U.S.C. 638, 644).

16 (c) NONAPPLICATION OF JUSTIFICATION AND APPROVAL REQUIRE17 MENTS.—A contract awarded pursuant to the competitive procedures re18 ferred to in subsections (a) and (b) is not subject to the justification and

19 approval required by section 3303(d)(1) of this title.

20 § 3303. Use of noncompetitive procedures

21 (a) WHEN NONCOMPETITIVE PROCEDURES MAY BE USED.—An execu22 tive agency may use procedures other than competitive procedures only

23 when—

24 (1) the property or services needed by the executive agency are avail25 able from only one responsible source and no other type of property

26 or services will satisfy the needs of the executive agency;

27 (2) the executive agency’s need for the property or services is of such

28 an unusual and compelling urgency that the Federal Government would

29 be seriously injured unless the executive agency is permitted to limit

30 the number of sources from which it solicits bids or proposals;

31 (3) it is necessary to award the contract to a particular source—

32 (A) to maintain a facility, producer, manufacturer, or other sup33 plier available for furnishing property or services in case of a na34 tional emergency or to achieve industrial mobilization;

35 (B) to establish or maintain an essential engineering, research,

36 or development capability to be provided by an educational or

37 other nonprofit institution or a Federally funded research and de38 velopment center;

39 (C) to procure the services of an expert for use, in any litigation

40 or dispute (including any reasonably foreseeable litigation or dis41 pute) involving the Federal Government, in any trial, hearing, or

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1 proceeding before a court, administrative tribunal, or agency,

2 whether or not the expert is expected to testify; or

3 (D) to procure the services of an expert or neutral for use in

4 any part of an alternative dispute resolution or negotiated rule5 making process, whether or not the expert is expected to testify;

6 (4) the terms of an international agreement or treaty between the

7 Federal Government and a foreign government or an international or8 ganization, or the written directions of a foreign government reimburs9 ing the executive agency for the cost of the procurement of the prop10 erty or services for that government, have the effect of requiring the

11 use of procedures other than competitive procedures;

12 (5) subject to section 3105 of this title, a statute expressly author13 izes or requires that the procurement be made through another execu14 tive agency or from a specified source, or the agency’s need is for a

15 brand-name commercial item for authorized resale;

16 (6) the disclosure of the executive agency’s needs would compromise

17 the national security unless the agency is permitted to limit the number

18 of sources from which it solicits bids or proposals; or

19 (7) the head of the executive agency (who may not delegate the au20 thority under this paragraph)—

21 (A) determines that it is necessary in the public interest to use

22 procedures other than competitive procedures in the particular

23 procurement concerned; and

24 (B) notifies Congress in writing of that determination not less

25 than 30 days before the award of the contract.

26 (b) PROPERTY OR SERVICES DEEMED AVAILABLE FROM ONLY ONE

27 SOURCE.—For the purposes of subsection (a)(1), in the case of—

28 (1) a contract for property or services to be awarded on the basis

29 of acceptance of an unsolicited research proposal, the property or serv30 ices are deemed to be available from only one source if the source has

31 submitted an unsolicited research proposal that demonstrates a unique

32 and innovative concept, the substance of which is not otherwise avail33 able to the Federal Government and does not resemble the substance

34 of a pending competitive procurement; or

35 (2) a follow-on contract for the continued development or production

36 of a major system or highly specialized equipment, the property may

37 be deemed to be available only from the original source and may be

38 procured through procedures other than competitive procedures when

39 it is likely that award to a source other than the original source would

40 result in—

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1 (A) substantial duplication of cost to the Federal Government

2 that is not expected to be recovered through competition; or

3 (B) unacceptable delay in fulfilling the executive agency’s needs.

4 (c) OFFER REQUESTS TO POTENTIAL SOURCES.—An executive agency

5 using procedures other than competitive procedures to procure property or

6 services by reason of the application of paragraph (2) or (6) of subsection

7 (a) shall request offers from as many potential sources as is practicable

8 under the circumstances.

9 (d) JUSTIFICATION FOR USE OF NONCOMPETITIVE PROCEDURES.—

10 (1) PREREQUISITES FOR AWARDING CONTRACT.—Except as provided

11 in paragraphs (4) and (5), an executive agency may not award a con12 tract using procedures other than competitive procedures unless—

13 (A) the contracting officer for the contract justifies the use of

14 those procedures in writing and certifies the accuracy and com15 pleteness of the justification;

16 (B) the justification is approved, in the case of a contract for

17 an amount—

18 (i) exceeding $500,000 but equal to or less than

19 $10,000,000, by the advocate for competition for the pro20 curing activity (without further delegation) or by an official

21 referred to in clause (ii) or (iii);

22 (ii) exceeding $10,000,000 but equal to or less than

23 $50,000,000, by the head of the procuring activity or by a

24 delegate who, if a member of the armed forces, is a general

25 or flag officer or, if a civilian, is serving in a position in which

26 the individual is entitled to receive the daily equivalent of the

27 maximum annual rate of basic pay payable under section

28 5376 of title 5 (or in a comparable or higher position under

29 another schedule); or

30 (iii) exceeding $50,000,000, by the senior procurement ex31 ecutive of the agency designated pursuant to section 1702(c)

32 of this title (without further delegation); and

33 (C) any required notice has been published with respect to the

34 contract pursuant to section 1707 of this title and the executive

35 agency has considered all bids or proposals received in response

36 to that notice.

37 (2) ELEMENTS OF JUSTIFICATION.—The justification required by

38 paragraph (1)(A) shall include—

39 (A) a description of the agency’s needs;

40 (B) an identification of the statutory exception from the re41 quirement to use competitive procedures and a demonstration,

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1 based on the proposed contractor’s qualifications or the nature of

2 the procurement, of the reasons for using that exception;

3 (C) a determination that the anticipated cost will be fair and

4 reasonable;

5 (D) a description of the market survey conducted or a state6 ment of the reasons a market survey was not conducted;

7 (E) a listing of any sources that expressed in writing an interest

8 in the procurement; and

9 (F) a statement of any actions the agency may take to remove

10 or overcome a barrier to competition before a subsequent procure11 ment for those needs.

12 (3) JUSTIFICATION SUBJECT TO PUBLIC INSPECTION.—The justifica13 tion required by paragraph (1)(A) and any related information shall be

14 made available for inspection by the public consistent with section 552

15 of title 5.

16 (4) JUSTIFICATION ALLOWED AFTER CONTRACT AWARDED.—In the

17 case of a procurement permitted by subsection (a)(2), the justification

18 and approval required by paragraph (1) may be made after the con19 tract is awarded.

20 (5) JUSTIFICATION NOT REQUIRED.—The justification and approval

21 required by paragraph (1) are not required if—

22 (A) a statute expressly requires that the procurement be made

23 from a specified source;

24 (B) the agency’s need is for a brand-name commercial item for

25 authorized resale;

26 (C) the procurement is permitted by subsection (a)(7); or

27 (D) the procurement is conducted under chapter 85 of this title

28 or section 8(a) of the Small Business Act (15 U.S.C. 637(a)).

29 (6) RESTRICTIONS ON EXECUTIVE AGENCIES.—

30 (A) CONTRACTS AND PROCUREMENT OF PROPERTY OR SERV31 ICES.—In no case may an executive agency—

32 (i) enter into a contract for property or services using pro33 cedures other than competitive procedures on the basis of the

34 lack of advance planning or concerns related to the amount

35 available to the agency for procurement functions; or

36 (ii) procure property or services from another executive

37 agency unless the other executive agency complies fully with

38 the requirements of this part in its procurement of the prop39 erty or services.

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1 (B) ADDITIONAL RESTRICTION.—The restriction set out in sub2 paragraph (A)(ii) is in addition to any other restriction provided

3 by law.

4 § 3304. Simplified procedures for small purchases

5 (a) AUTHORIZATION.—To promote efficiency and economy in contracting

6 and to avoid unnecessary burdens for agencies and contractors, the Federal

7 Acquisition Regulation shall provide for special simplified procedures for

8 purchases of property and services for amounts—

9 (1) not greater than the simplified acquisition threshold; and

10 (2) greater than the simplified acquisition threshold but not greater

11 than $5,000,000 for which the contracting officer reasonably expects,

12 based on the nature of the property or services sought and on market

13 research, that offers will include only commercial items.

14 (b) LEASEHOLD INTERESTS IN REAL PROPERTY.—The Administrator of

15 General Services shall prescribe regulations that provide special simplified

16 procedures for acquisitions of leasehold interests in real property at rental

17 rates that do not exceed the simplified acquisition threshold. The rental rate

18 under a multiyear lease does not exceed the simplified acquisition threshold

19 if the average annual amount of the rent payable for the period of the lease

20 does not exceed the simplified acquisition threshold.

21 (c) PROHIBITION ON DIVIDING CONTRACTS.—A proposed purchase or

22 contract for an amount above the simplified acquisition threshold may not

23 be divided into several purchases or contracts for lesser amounts to use the

24 simplified procedures required by subsection (a).

25 (d) PROMOTION OF COMPETITION.—In using the simplified procedures,

26 an executive agency shall promote competition to the maximum extent prac27 ticable.

28 (e) COMPLIANCE WITH SPECIAL REQUIREMENTS OF FEDERAL ACQUISI29 TION REGULATION.—An executive agency shall comply with the Federal Ac30 quisition Regulation provisions referred to in section 1901(f) of this title.

31 § 3305. Planning and solicitation requirements

32 (a) PLANNING AND SPECIFICATIONS.—

33 (1) PREPARING FOR PROCUREMENT.—In preparing for the procure34 ment of property or services, an executive agency shall—

35 (A) specify its needs and solicit bids or proposals in a manner

36 designed to achieve full and open competition for the procurement;

37 (B) use advance procurement planning and market research;

38 and

39 (C) develop specifications in the manner necessary to obtain full

40 and open competition with due regard to the nature of the prop41 erty or services to be acquired.

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1 (2) REQUIREMENTS OF SPECIFICATIONS.—Each solicitation under

2 this part shall include specifications that—

3 (A) consistent with this part, permit full and open competition;

4 and

5 (B) include restrictive provisions or conditions only to the extent

6 necessary to satisfy the needs of the executive agency or as au7 thorized by law.

8 (3) TYPES OF SPECIFICATIONS.—For the purposes of paragraphs (1)

9 and (2), the type of specification included in a solicitation shall depend

10 on the nature of the needs of the executive agency and the market

11 available to satisfy those needs. Subject to those needs, specifications

12 may be stated in terms of—

13 (A) function, so that a variety of products or services may qual14 ify;

15 (B) performance, including specifications of the range of accept16 able characteristics or of the minimum acceptable standards; or

17 (C) design requirements.

18 (b) CONTENTS OF SOLICITATION.—In addition to the specifications de19 scribed in subsection (a), each solicitation for sealed bids or competitive pro20 posals (other than for a procurement for commercial items using special

21 simplified procedures or a purchase for an amount not greater than the sim22 plified acquisition threshold) shall at a minimum include—

23 (1) a statement of—

24 (A) all significant factors and subfactors that the executive

25 agency reasonably expects to consider in evaluating sealed bids

26 (including price) or competitive proposals (including cost or price,

27 cost-related or price-related factors and subfactors, and noncost28 related or nonprice-related factors and subfactors); and

29 (B) the relative importance assigned to each of those factors

30 and subfactors; and

31 (2)(A) in the case of sealed bids—

32 (i) a statement that sealed bids will be evaluated without discus33 sions with the bidders; and

34 (ii) the time and place for the opening of the sealed bids; or

35 (B) in the case of competitive proposals—

36 (i) either a statement that the proposals are intended to be eval37 uated with, and the award made after, discussions with the

38 offerors, or a statement that the proposals are intended to be eval39 uated, and the award made, without discussions with the offerors

40 (other than discussions conducted for the purpose of minor clari41 fication) unless discussions are determined to be necessary; and

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1 (ii) the time and place for submission of proposals.

2 (c) EVALUATION FACTORS.—

3 (1) IN GENERAL.—In prescribing the evaluation factors to be in4 cluded in each solicitation for competitive proposals, an executive agen5 cy shall—

6 (A) establish clearly the relative importance assigned to the

7 evaluation factors and subfactors, including the quality of the

8 product or services to be provided (including technical capability,

9 management capability, prior experience, and past performance of

10 the offeror);

11 (B) include cost or price to the Federal Government as an eval12 uation factor that must be considered in the evaluation of pro13 posals; and

14 (C) disclose to offerors whether all evaluation factors other than

15 cost or price, when combined, are—

16 (i) significantly more important than cost or price;

17 (ii) approximately equal in importance to cost or price; or

18 (iii) significantly less important than cost or price.

19 (2) RESTRICTION ON IMPLEMENTING REGULATIONS.—Regulations

20 implementing paragraph (1)(C) may not define the terms ‘‘significantly

21 more important’’ and ‘‘significantly less important’’ as specific numeric

22 weights that would be applied uniformly to all solicitations or a class

23 of solicitations.

24 (d) ADDITIONAL INFORMATION IN SOLICITATION.—This section does not

25 prohibit an executive agency from—

26 (1) providing additional information in a solicitation, including nu27 meric weights for all evaluation factors and subfactors on a case-by28 case basis; or

29 (2) stating in a solicitation that award will be made to the offeror

30 that meets the solicitation’s mandatory requirements at the lowest cost

31 or price.

32 (e) LIMITATION ON EVALUATION OF PURCHASE OPTIONS.—An executive

33 agency, in issuing a solicitation for a contract to be awarded using sealed

34 bid procedures, may not include in the solicitation a clause providing for the

35 evaluation of prices for options to purchase additional property or services

36 under the contract unless the executive agency has determined that there

37 is a reasonable likelihood that the options will be exercised.

38 (f) AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRAC39 TORS.—

40 (1) DEFINITION.—In this subsection, the term ‘‘executive agency’’

41 has the meaning given that term in section 133 of this title.

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1 (2) FEDERAL ACQUISITION REGULATION TO ALLOW TELECOM2 MUTING.—The Federal Acquisition Regulation issued in accordance

3 with sections 1121(b) and 1303(a)(1) of this title shall permit telecom4 muting by employees of Federal Government contractors in the per5 formance of contracts entered into with executive agencies.

6 (3) SCOPE OF ALLOWANCE.—The Federal Acquisition Regulation at

7 a minimum shall provide that a solicitation for the acquisition of prop8 erty or services may not set forth any requirement or evaluation cri9 teria that would—

10 (A) render an offeror ineligible to enter into a contract on the

11 basis of the inclusion of a plan of the offeror to allow the offeror’s

12 employees to telecommute, unless the contracting officer concerned

13 first determines that the requirements of the agency, including se14 curity requirements, cannot be met if telecommuting is allowed

15 and documents in writing the basis for the determination; or

16 (B) reduce the scoring of an offer on the basis of the inclusion

17 in the offer of a plan of the offeror to allow the offeror’s employ18 ees to telecommute, unless the contracting officer concerned first

19 determines that the requirements of the agency, including security

20 requirements, would be adversely impacted if telecommuting is al21 lowed and documents in writing the basis for the determination.

22 § 3306. Preference for commercial items

23 (a) RELATIONSHIP OF PROVISIONS OF LAW TO PROCUREMENT OF COM24 MERCIAL ITEMS.—

25 (1) THIS PART.—Unless otherwise specifically provided, all other

26 provisions in this part also apply to the procurement of commercial

27 items.

28 (2) LAWS LISTED IN FEDERAL ACQUISITION REGULATION.—A con29 tract for the procurement of a commercial item entered into by the

30 head of an executive agency is not subject to a law properly listed in

31 the Federal Acquisition Regulation pursuant to section 1906 of this

32 title.

33 (b) PREFERENCE.—The head of each executive agency shall ensure that,

34 to the maximum extent practicable—

35 (1) requirements of the executive agency with respect to a procure36 ment of supplies or services are stated in terms of—

37 (A) functions to be performed;

38 (B) performance required; or

39 (C) essential physical characteristics;

40 (2) those requirements are defined so that commercial items or, to

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1 cy’s needs are not available, nondevelopmental items other than com2 mercial items may be procured to fulfill those requirements; and

3 (3) offerors of commercial items and nondevelopmental items other

4 than commercial items are provided an opportunity to compete in any

5 procurement to fill those requirements.

6 (c) IMPLEMENTATION.—The head of each executive agency shall ensure

7 that procurement officials in that executive agency, to the maximum extent

8 practicable—

9 (1) acquire commercial items or nondevelopmental items other than

10 commercial items to meet the needs of the executive agency;

11 (2) require that prime contractors and subcontractors at all levels

12 under contracts of the executive agency incorporate commercial items

13 or nondevelopmental items other than commercial items as components

14 of items supplied to the executive agency;

15 (3) modify requirements in appropriate cases to ensure that the re16 quirements can be met by commercial items or, to the extent that com17 mercial items suitable to meet the executive agency’s needs are not

18 available, nondevelopmental items other than commercial items;

19 (4) state specifications in terms that enable and encourage bidders

20 and offerors to supply commercial items or, to the extent that commer21 cial items suitable to meet the executive agency’s needs are not avail22 able, nondevelopmental items other than commercial items in response

23 to the executive agency solicitations;

24 (5) revise the executive agency’s procurement policies, practices, and

25 procedures not required by law to reduce any impediments in those

26 policies, practices, and procedures to the acquisition of commercial

27 items; and

28 (6) require training of appropriate personnel in the acquisition of

29 commercial items.

30 (d) MARKET RESEARCH.—

31 (1) WHEN TO BE USED.—The head of an executive agency shall con32 duct market research appropriate to the circumstances—

33 (A) before developing new specifications for a procurement by

34 that executive agency; and

35 (B) before soliciting bids or proposals for a contract in excess

36 of the simplified acquisition threshold.

37 (2) USE OF RESULTS.—The head of an executive agency shall use

38 the results of market research to determine whether commercial items

39 or, to the extent that commercial items suitable to meet the executive

40 agency’s needs are not available, nondevelopmental items other than

41 commercial items are available that—

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1 (A) meet the executive agency’s requirements;

2 (B) could be modified to meet the executive agency’s require3 ments; or

4 (C) could meet the executive agency’s requirements if those re5 quirements were modified to a reasonable extent.

6 (3) ONLY MINIMUM INFORMATION REQUIRED TO BE SUBMITTED.—

7 In conducting market research, the head of an executive agency should

8 not require potential sources to submit more than the minimum infor9 mation that is necessary to make the determinations required in para10 graph (2).

11 (e) REGULATIONS.—

12 (1) IN GENERAL.—The Federal Acquisition Regulation shall provide

13 regulations to implement this section, sections 102, 103, 105, and 110

14 of this title, and chapter 140 of title 10.

15 (2) CONTRACT CLAUSES.—

16 (A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’

17 includes a transfer of commercial items between divisions, subsidi18 aries, or affiliates of a contractor or subcontractor.

19 (B) LIST OF CLAUSES TO BE INCLUDED.—The regulations pre20 scribed under paragraph (1) shall contain a list of contract clauses

21 to be included in contracts for the acquisition of commercial end

22 items. To the maximum extent practicable, the list shall include

23 only those contract clauses that are—

24 (i) required to implement provisions of law or executive or25 ders applicable to acquisitions of commercial items or com26 mercial components; or

27 (ii) determined to be consistent with standard commercial

28 practice.

29 (C) REQUIREMENTS OF PRIME CONTRACTOR.—The regulations

30 shall provide that the Federal Government shall not require a

31 prime contractor to apply to any of its divisions, subsidiaries, af32 filiates, subcontractors, or suppliers that are furnishing commer33 cial items any contract clause except those that are—

34 (i) required to implement provisions of law or executive or35 ders applicable to subcontractors furnishing commercial items

36 or commercial components; or

37 (ii) determined to be consistent with standard commercial

38 practice.

39 (D) CLAUSES THAT MAY BE USED IN A CONTRACT.—To the

40 maximum extent practicable, only the contract clauses listed pur41 suant to subparagraph (B) may be used in a contract, and only

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1 the contract clauses referred to in subparagraph (C) may be re2 quired to be used in a subcontract, for the acquisition of commer3 cial items or commercial components by or for an executive agen4 cy.

5 (E) WAIVER OF CONTRACT CLAUSES.—The Federal Acquisition

6 Regulation shall provide standards and procedures for waiving the

7 use of contract clauses required pursuant to subparagraph (B),

8 other than those required by law, including standards for deter9 mining the cases in which a waiver is appropriate.

10 (3) MARKET ACCEPTANCE.—

11 (A) REQUIREMENT OF OFFERORS.—The Federal Acquisition

12 Regulation shall provide that under appropriate conditions the

13 head of an executive agency may require offerors to demonstrate

14 that the items offered—

15 (i) have achieved commercial market acceptance or been

16 satisfactorily supplied to an executive agency under current or

17 recent contracts for the same or similar requirements; and

18 (ii) otherwise meet the item description, specifications, or

19 other criteria prescribed in the public notice and solicitation

20 relating to the contract.

21 (B) REGULATION TO PROVIDE GUIDANCE ON CRITERIA.—The

22 Federal Acquisition Regulation shall provide guidance to ensure

23 that the criteria for determining commercial market acceptance in24 clude the consideration of—

25 (i) the minimum needs of the executive agency concerned;

26 and

27 (ii) the entire relevant commercial market, including small

28 businesses.

29 (4) PROVISIONS RELATING TO TYPES OF CONTRACTS.—

30 (A) TYPES OF CONTRACTS THAT MAY BE USED.—The Federal

31 Acquisition Regulation shall include, for acquisitions of commercial

32 items—

33 (i) a requirement that firm, fixed price contracts or fixed

34 price with economic price adjustment contracts be used to the

35 maximum extent practicable;

36 (ii) a prohibition on use of cost type contracts; and

37 (iii) subject to subparagraph (B), authority for use of a

38 time-and-materials or labor-hour contract for the procurement

39 of commercial services that are commonly sold to the general

40 public through those contracts and are purchased by the pro41 curing agency on a competitive basis.

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1 (B) WHEN TIME-AND-MATERIALS OR LABOR-HOUR CONTRACT

2 MAY BE USED.—A time-and-materials or labor-hour contract may

3 be used pursuant to the authority referred to in subparagraph

4 (A)(iii)—

5 (i) only for a procurement of commercial services in a cat6 egory of commercial services described in subparagraph (C);

7 and

8 (ii) only if the contracting officer for the procurement—

9 (I) executes a determination and findings that no

10 other contract type is suitable;

11 (II) includes in the contract a ceiling price that the

12 contractor exceeds at its own risk; and

13 (III) authorizes a subsequent change in the ceiling

14 price only on a determination, documented in the con15 tract file, that it is in the best interest of the procuring

16 agency to change the ceiling price.

17 (C) CATEGORIES OF COMMERCIAL SERVICES.—The categories of

18 commercial services referred to in subparagraph (B) are as fol19 lows:

20 (i) Commercial services procured for support of a commer21 cial item, as described in section 103(5) of this title.

22 (ii) Any other category of commercial services that the Ad23 ministrator for Federal Procurement Policy designates in the

24 Federal Acquisition Regulation for the purposes of this sub25 paragraph on the basis that—

26 (I) the commercial services in the category are of a

27 type of commercial services that are commonly sold to

28 the general public through use of time-and-materials or

29 labor-hour contracts; and

30 (II) it would be in the best interests of the Federal

31 Government to authorize use of time-and-materials or

32 labor-hour contracts for purchases of the commercial

33 services in the category.

34 (5) CONTRACT QUALITY REQUIREMENTS.—Regulations prescribed

35 under paragraph (1) shall include provisions that—

36 (A) allow, to the maximum extent practicable, a contractor

37 under a commercial items acquisition to use the existing quality

38 assurance system of the contractor as a substitute for compliance

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1 tor’s tender of those items for acceptance by the Federal Govern2 ment;

3 (B) require that, to the maximum extent practicable, the execu4 tive agency take advantage of warranties (including extended war5 ranties) offered by offerors of commercial items and use those

6 warranties for the repair and replacement of commercial items;

7 and

8 (C) set forth guidance regarding the use of past performance of

9 commercial items and sources as a factor in contract award deci10 sions.

11 § 3307. Planning for future competition in contracts for

12 major systems

13 (a) DEVELOPMENT CONTRACT.—

14 (1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In pre15 paring a solicitation for the award of a development contract for a

16 major system, the head of an agency shall consider requiring in the so17 licitation that an offeror include in its offer proposals described in

18 paragraph (2). In determining whether to require the proposals, the

19 head of the agency shall consider the purposes for which the system

20 is being procured and the technology necessary to meet the system’s

21 required capabilities. If the proposals are required, the head of the

22 agency shall consider them in evaluating the offeror’s price.

23 (2) CONTENTS OF PROPOSALS.—The proposals that the head of an

24 agency is to consider requiring in a solicitation for the award of a de25 velopment contract are the following:

26 (A) Proposals to incorporate in the design of the major system

27 items that are currently available within the supply system of the

28 Federal agency responsible for the major system, available else29 where in the national supply system, or commercially available

30 from more than one source.

31 (B) With respect to items that are likely to be required in sub32 stantial quantities during the system’s service life, proposals to in33 corporate in the design of the major system items that the Federal

34 Government will be able to acquire competitively in the future.

35 (b) PRODUCTION CONTRACT.—

36 (1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In pre37 paring a solicitation for the award of a production contract for a major

38 system, the head of an agency shall consider requiring in the solicita39 tion that an offeror include in its offer proposals described in para40 graph (2). In determining whether to require the proposals, the head

41 of the agency shall consider the purposes for which the system is being

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1 procured and the technology necessary to meet the system’s required

2 capabilities. If the proposals are required, the head of the agency shall

3 consider them in evaluating the offeror’s price.

4 (2) CONTENT OF PROPOSALS.—The proposals that the head of an

5 agency is to consider requiring in a solicitation for the award of a pro6 duction contract are proposals identifying opportunities to ensure that

7 the Federal Government will be able to obtain on a competitive basis

8 items procured in connection with the system that are likely to be re9 procured in substantial quantities during the service life of the system.

10 Proposals submitted in response to this requirement may include the

11 following:

12 (A) Proposals to provide to the Federal Government the right

13 to use technical data to be provided under the contract for com14 petitive reprocurement of the item, together with the cost to the

15 Federal Government of acquiring the data and the right to use the

16 data.

17 (B) Proposals for the qualification or development of multiple

18 sources of supply for the item.

19 (c) CONSIDERATION OF FACTORS AS OBJECTIVES IN NEGOTIATIONS.—

20 If the head of an agency is making a noncompetitive award of a develop21 ment contract or a production contract for a major system, the factors spec22 ified in subsections (a) and (b) to be considered in evaluating an offer for

23 a contract may be considered as objectives in negotiating the contract to

24 be awarded.

25 § 3308. Design-build selection procedures

26 (a) AUTHORIZATION.—Unless the traditional acquisition approach of de27 sign-bid-build established under sections 1101 to 1104 of title 40 or another

28 acquisition procedure authorized by law is used, the head of an executive

29 agency shall use the two-phase selection procedures authorized in this sec30 tion for entering into a contract for the design and construction of a public

31 building, facility, or work when a determination is made under subsection

32 (b) that the procedures are appropriate for use.

33 (b) CRITERIA FOR USE.—A contracting officer shall make a determina34 tion whether two-phase selection procedures are appropriate for use for en35 tering into a contract for the design and construction of a public building,

36 facility, or work when—

37 (1) the contracting officer anticipates that 3 or more offers will be

38 received for the contract;

39 (2) design work must be performed before an offeror can develop a

40 price or cost proposal for the contract;

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1 (3) the offeror will incur a substantial amount of expense in pre2 paring the offer; and

3 (4) the contracting officer has considered information such as the

4 following:

5 (A) The extent to which the project requirements have been

6 adequately defined.

7 (B) The time constraints for delivery of the project.

8 (C) The capability and experience of potential contractors.

9 (D) The suitability of the project for use of the two-phase selec10 tion procedures.

11 (E) The capability of the agency to manage the two-phase selec12 tion process.

13 (F) Other criteria established by the agency.

14 (c) PROCEDURES DESCRIBED.—Two-phase selection procedures consist of

15 the following:

16 (1) DEVELOPMENT OF SCOPE OF WORK STATEMENT.—The agency

17 develops, either in-house or by contract, a scope of work statement for

18 inclusion in the solicitation that defines the project and provides pro19 spective offerors with sufficient information regarding the Federal Gov20 ernment’s requirements (which may include criteria and preliminary de21 sign, budget parameters, and schedule or delivery requirements) to en22 able the offerors to submit proposals that meet the Federal Govern23 ment’s needs. If the agency contracts for development of the scope of

24 work statement, the agency shall contract for architectural and engi25 neering services as defined by and in accordance with sections 1101 to

26 1104 of title 40.

27 (2) SOLICITATION OF PHASE-ONE PROPOSALS.—The contracting offi28 cer solicits phase-one proposals that—

29 (A) include information on the offeror’s—

30 (i) technical approach; and

31 (ii) technical qualifications; and

32 (B) do not include—

33 (i) detailed design information; or

34 (ii) cost or price information.

35 (3) EVALUATION FACTORS.—The evaluation factors to be used in

36 evaluating phase-one proposals are stated in the solicitation and include

37 specialized experience and technical competence, capability to perform,

38 past performance of the offeror’s team (including the architect-engineer

39 and construction members of the team), and other appropriate factors,

40 except that cost-related or price-related evaluation factors are not per41 mitted. Each solicitation establishes the relative importance assigned to

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1 the evaluation factors and subfactors that must be considered in the

2 evaluation of phase-one proposals. The agency evaluates phase-one pro3 posals on the basis of the phase-one evaluation factors set forth in the

4 solicitation.

5 (4) SELECTION BY CONTRACTING OFFICER.—

6 (A) NUMBER OF OFFERORS SELECTED AND WHAT IS TO BE

7 EVALUATED.—The contracting officer selects as the most highly

8 qualified the number of offerors specified in the solicitation to pro9 vide the property or services under the contract and requests the

10 selected offerors to submit phase-two competitive proposals that

11 include technical proposals and cost or price information. Each so12 licitation establishes with respect to phase two—

13 (i) the technical submission for the proposal, including de14 sign concepts or proposed solutions to requirements addressed

15 within the scope of work, or both; and

16 (ii) the evaluation factors and subfactors, including cost or

17 price, that must be considered in the evaluations of proposals

18 in accordance with subsections (b) to (d) of section 3305 of

19 this title.

20 (B) SEPARATE EVALUATIONS.—The contracting officer sepa21 rately evaluates the submissions described in clauses (i) and (ii)

22 of subparagraph (A).

23 (5) AWARDING OF CONTRACT.—The agency awards the contract in

24 accordance with chapter 37 of this title.

25 (d) SOLICITATION TO STATE NUMBER OF OFFERORS TO BE SELECTED

26 FOR PHASE-TWO REQUESTS FOR COMPETITIVE PROPOSALS.—A solicitation

27 issued pursuant to the procedures described in subsection (c) shall state the

28 maximum number of offerors that are to be selected to submit competitive

29 proposals pursuant to subsection (c)(4). The maximum number specified in

30 the solicitation shall not exceed 5 unless the agency determines with respect

31 to an individual solicitation that a specified number greater than 5 is in the

32 Federal Government’s interest and is consistent with the purposes and ob33 jectives of the two-phase selection process.

34 (e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Federal Ac35 quisition Regulation shall include guidance—

36 (1) regarding the factors that may be considered in determining

37 whether the two-phase contracting procedures authorized by subsection

38 (a) are appropriate for use in individual contracting situations;

39 (2) regarding the factors that may be used in selecting contractors;

40 and

41 (3) providing for a uniform approach to be used Government-wide.

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1 § 3309. Quantities to order

2 (a) FACTORS AFFECTING QUANTITY TO ORDER.—Each executive agency

3 shall procure supplies in a quantity that—

4 (1) will result in the total cost and unit cost most advantageous to

5 the Federal Government, where practicable; and

6 (2) does not exceed the quantity reasonably expected to be required

7 by the agency.

8 (b) OFFEROR’S OPINION OF QUANTITY.—Each solicitation for a contract

9 for supplies shall, if practicable, include a provision inviting each offeror re10 sponding to the solicitation to state an opinion on whether the quantity of

11 supplies proposed to be procured is economically advantageous to the Fed12 eral Government and, if applicable, to recommend a quantity that would be

13 more economically advantageous to the Federal Government. Each rec14 ommendation shall include a quotation of the total price and the unit price

15 for supplies procured in each recommended quantity.

16 § 3310. Qualification requirement

17 (a) DEFINITION.—In this section, the term ‘‘qualification requirement’’

18 means a requirement for testing or other quality assurance demonstration

19 that must be completed by an offeror before award of a contract.

20 (b) ACTIONS BEFORE ENFORCING QUALIFICATION REQUIREMENT.—Ex21 cept as provided in subsection (c), the head of an agency, before enforcing

22 any qualification requirement, shall—

23 (1) prepare a written justification stating the necessity for estab24 lishing the qualification requirement and specify why the qualification

25 requirement must be demonstrated before contract award;

26 (2) specify in writing and make available to a potential offeror on

27 request all requirements that a prospective offeror, or its product, must

28 satisfy to become qualified, with those requirements to be limited to

29 those least restrictive to meet the purposes necessitating the establish30 ment of the qualification requirement;

31 (3) specify an estimate of the cost of testing and evaluation likely

32 to be incurred by a potential offeror to become qualified;

33 (4) ensure that a potential offeror is provided, on request, a prompt

34 opportunity to demonstrate at its own expense (except as provided in

35 subsection (d)) its ability to meet the standards specified for qualifica36 tion using—

37 (A) qualified personnel and facilities—

38 (i) of the agency concerned;

39 (ii) of another agency obtained through interagency agree40 ment; or

41 (iii) under contract; or

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1 (B) other methods approved by the agency (including use of ap2 proved testing and evaluation services not provided under contract

3 to the agency);

4 (5) if testing and evaluation services are provided under contract to

5 the agency for the purposes of paragraph (4), provide to the extent

6 possible that those services be provided by a contractor that—

7 (A) is not expected to benefit from an absence of additional

8 qualified sources; and

9 (B) is required in the contract to adhere to any restriction on

10 technical data asserted by the potential offeror seeking qualifica11 tion; and

12 (6) ensure that a potential offeror seeking qualification is promptly

13 informed whether qualification is attained and, if not attained, is

14 promptly furnished specific information about why qualification was

15 not attained.

16 (c) APPLICABILITY, WAIVER AUTHORITY, AND REFERRAL OF OFFERS.—

17 (1) APPLICABILITY.—Subsection (b) does not apply to a qualification

18 requirement established by statute prior to October 30, 1984.

19 (2) WAIVER AUTHORITY.—

20 (A) SUBMISSION OF DETERMINATION OF

21 UNREASONABLENESS.—Except as provided in subparagraph (C), if

22 it is unreasonable to specify the standards for qualification that

23 a prospective offeror or its product must satisfy, a determination

24 to that effect shall be submitted to the advocate for competition

25 of the procuring activity responsible for the purchase of the item

26 subject to the qualification requirement.

27 (B) AUTHORITY TO GRANT WAIVER.—After considering any

28 comments of the advocate for competition reviewing the deter29 mination, the head of the procuring activity may waive the re30 quirements of paragraphs (2) to (5) of subsection (b) for up to

31 2 years with respect to the item subject to the qualification re32 quirement.

33 (C) NONAPPLICABILITY TO QUALIFIED PRODUCTS LIST.—Waiv34 er authority under this paragraph does not apply with respect to

35 a qualified products list.

36 (3) SUBMISSION AND CONSIDERATION OF OFFER NOT TO BE DE37 NIED.—A potential offeror may not be denied the opportunity to sub38 mit and have considered an offer for a contract solely because the po39 tential offeror has not been identified as meeting a qualification re40 quirement if the potential offeror can demonstrate to the satisfaction

41 of the contracting officer that the potential offeror or its product meets

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1 the standards established for qualification or can meet those standards

2 before the date specified for award of the contract.

3 (4) REFERRAL TO SMALL BUSINESS ADMINISTRATION NOT RE4 QUIRED.—This subsection does not require the referral of an offer to

5 the Small Business Administration pursuant to section 8(b)(7) of the

6 Small Business Act (15 U.S.C. 637(b)(7)) if the basis for the referral

7 is a challenge by the offeror to either the validity of the qualification

8 requirement or the offeror’s compliance with that requirement.

9 (5) DELAY OF PROCUREMENT NOT REQUIRED.—The head of an

10 agency need not delay a proposed procurement to comply with sub11 section (b) or to provide a potential offeror with an opportunity to dem12 onstrate its ability to meet the standards specified for qualification.

13 (d) FEWER THAN 2 ACTUAL MANUFACTURERS.—

14 (1) SOLICITATION AND TESTING OF ADDITIONAL SOURCES OR PROD15 UCTS.—If the number of qualified sources or qualified products avail16 able to compete actively for an anticipated future requirement is fewer

17 than 2 actual manufacturers or the products of 2 actual manufactur18 ers, respectively, the head of the agency concerned shall—

19 (A) publish notice periodically soliciting additional sources or

20 products to seek qualification, unless the contracting officer deter21 mines that doing so would compromise national security; and

22 (B) subject to paragraph (2), bear the cost of conducting the

23 specified testing and evaluation (excluding the cost associated with

24 producing the item or establishing the production, quality control,

25 or other system to be tested and evaluated) for a small business

26 concern or a product manufactured by a small business concern

27 that has met the standards specified for qualification and that

28 could reasonably be expected to compete for a contract for that

29 requirement.

30 (2) WHEN AGENCY MAY BEAR COST.—The head of the agency con31 cerned may bear the cost under paragraph (1)(B) only if the head of

32 the agency determines that the additional qualified sources or products

33 are likely to result in cost savings from increased competition for future

34 requirements sufficient to offset (within a reasonable period of time

35 considering the duration and dollar value of anticipated future require36 ments) the cost incurred by the agency.

37 (3) CERTIFICATION REQUIRED.—The head of the agency shall re38 quire a prospective contractor requesting the Federal Government to

39 bear testing and evaluation costs under paragraph (1)(B) to certify its

40 status as a small business concern under section 3 of the Small Busi41 ness Act (15 U.S.C. 632).

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1 (e) EXAMINATION AND REVALIDATION OF QUALIFICATION REQUIRE2 MENT.—Within 7 years after the establishment of a qualification require3 ment, the need for the requirement shall be examined and the standards of

4 the requirement revalidated in accordance with the requirements of sub5 section (b). This subsection does not apply in the case of a qualification re6 quirement for which a waiver is in effect under subsection (c)(2).

7 (f) WHEN ENFORCEMENT OF QUALIFICATION REQUIREMENT NOT AL8 LOWED.—Except in an emergency as determined by the head of the agency,

9 after the head of the agency determines not to enforce a qualification re10 quirement for a solicitation, the agency may not enforce the requirement un11 less the agency complies with the requirements of subsection (b).

12 CHAPTER 35—TRUTHFUL COST AND PRICING DATA

Sec.

3501. Definitions.

3502. Required cost or pricing data and certification.

3503. Exceptions.

3504. Cost or pricing data on below-threshold contracts.

3505. Submission of other information.

3506. Price reductions for defective cost or pricing data.

3507. Interest and penalties for certain overpayments.

3508. Right to examine contractor records.

13 § 3501. Definitions

14 In this chapter:

15 (1) COMMERCIAL ITEM.—The term ‘‘commercial item’’ has the

16 meaning provided the term by section 103 of this title.

17 (2) COST OR PRICING DATA.—The term ‘‘cost or pricing data’’

18 means all facts that, as of the date of agreement on the price of a con19 tract (or the price of a contract modification) or, if applicable con20 sistent with section 3506(a)(2) of this title, another date agreed upon

21 between the parties, a prudent buyer or seller would reasonably expect

22 to affect price negotiations significantly. The term does not include in23 formation that is judgmental, but does include factual information from

24 which a judgment was derived.

25 (3) SUBCONTRACT.—The term ‘‘subcontract’’ includes a transfer of

26 commercial items between divisions, subsidiaries, or affiliates of a con27 tractor or a subcontractor.

28 § 3502. Required cost or pricing data and certification

29 (a) WHEN REQUIRED.—The head of an executive agency shall require

30 offerors, contractors, and subcontractors to make cost or pricing data avail31 able as follows:

32 (1) OFFEROR FOR PRIME CONTRACT.—An offeror for a prime con33 tract under this part to be entered into using procedures other than

34 sealed-bid procedures shall be required to submit cost or pricing data

35 before the award of a contract if—

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1 (A) in the case of a prime contract entered into after October

2 13, 1994, the price of the contract to the Federal Government is

3 expected to exceed $500,000; and

4 (B) in the case of a prime contract entered into on or before

5 October 13, 1994, the price of the contract to the Federal Govern6 ment is expected to exceed $100,000.

7 (2) CONTRACTOR.—The contractor for a prime contract under this

8 part shall be required to submit cost or pricing data before the pricing

9 of a change or modification to the contract if—

10 (A) in the case of a change or modification made to a prime

11 contract referred to in paragraph (1)(A), the price adjustment is

12 expected to exceed $500,000;

13 (B) in the case of a change or modification made to a prime

14 contract that was entered into on or before October 13, 1994, and

15 that has been modified pursuant to subsection (f), the price ad16 justment is expected to exceed $500,000; and

17 (C) in the case of a change or modification not covered by sub18 paragraph (A) or (B), the price adjustment is expected to exceed

19 $100,000.

20 (3) OFFEROR FOR SUBCONTRACT.—An offeror for a subcontract (at

21 any tier) of a contract under this part shall be required to submit cost

22 or pricing data before the award of the subcontract if the prime con23 tractor and each higher-tier subcontractor have been required to make

24 available cost or pricing data under this chapter and—

25 (A) in the case of a subcontract under a prime contract referred

26 to in paragraph (1)(A), the price of the subcontract is expected

27 to exceed $500,000;

28 (B) in the case of a subcontract entered into under a prime con29 tract that was entered into on or before October 13, 1994, and

30 that has been modified pursuant to subsection (f), the price of the

31 subcontract is expected to exceed $500,000; and

32 (C) in the case of a subcontract not covered by subparagraph

33 (A) or (B), the price of the subcontract is expected to exceed

34 $100,000.

35 (4) SUBCONTRACTOR.—The subcontractor for a subcontract covered

36 by paragraph (3) shall be required to submit cost or pricing data before

37 the pricing of a change or modification to the subcontract if—

38 (A) in the case of a change or modification to a subcontract re39 ferred to in paragraph (3)(A) or (B), the price adjustment is ex40 pected to exceed $500,000; and

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1 (B) in the case of a change or modification to a subcontract re2 ferred to in paragraph (3)(C), the price adjustment is expected to

3 exceed $100,000.

4 (b) CERTIFICATION.—A person required, as an offeror, contractor, or

5 subcontractor, to submit cost or pricing data under subsection (a) (or re6 quired by the head of the procuring activity concerned to submit the data

7 under section 3504 of this title) shall be required to certify that, to the best

8 of the person’s knowledge and belief, the cost or pricing data submitted are

9 accurate, complete, and current.

10 (c) TO WHOM SUBMITTED.—Cost or pricing data required to be sub11 mitted under subsection (a) (or under section 3504 of this title), and a cer12 tification required to be submitted under subsection (b), shall be

13 submitted—

14 (1) in the case of a submission by a prime contractor (or an offeror

15 for a prime contract), to the contracting officer for the contract (or a

16 designated representative of the contracting officer); or

17 (2) in the case of a submission by a subcontractor (or an offeror for

18 a subcontract), to the prime contractor.

19 (d) APPLICATION OF CHAPTER.—Except as provided under section 3503

20 of this title, this chapter applies to contracts entered into by the head of

21 an executive agency on behalf of a foreign government.

22 (e) SUBCONTRACTS NOT AFFECTED BY WAIVER.—A waiver of require23 ments for submission of certified cost or pricing data that is granted under

24 section 3503(a)(3) of this title in the case of a contract or subcontract does

25 not waive the requirement under subsection (a)(3) of this section for sub26 mission of cost or pricing data in the case of subcontracts under that con27 tract or subcontract unless the head of the procuring activity granting the

28 waiver determines that the requirement under subsection (a)(3) of this sec29 tion should be waived in the case of those subcontracts and justifies in writ30 ing the reason for the determination.

31 (f) MODIFICATIONS TO PRIOR CONTRACTS.—On the request of a con32 tractor that was required to submit cost or pricing data under subsection

33 (a) in connection with a prime contract entered into on or before October

34 13, 1994, the head of the executive agency that entered into the contract

35 shall modify the contract to reflect paragraphs (2)(B) and (3)(B) of sub36 section (a). All those modifications shall be made without requiring consid37 eration.

38 (g) ADJUSTMENT OF AMOUNTS.—Effective on October 1 of each year

39 that is divisible by 5, each amount set forth in subsection (a) shall be ad40 justed to the amount that is equal to the fiscal year 1994 constant dollar

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1 ly divisible by $50,000 shall be rounded to the nearest multiple of $50,000.

2 In the case of an amount that is evenly divisible by $25,000 but not evenly

3 divisible by $50,000, the amount shall be rounded to the next higher mul4 tiple of $50,000.

5 § 3503. Exceptions

6 (a) IN GENERAL.—Submission of certified cost or pricing data shall not

7 be required under section 3502 of this title in the case of a contract, a sub8 contract, or a modification of a contract or subcontract—

9 (1) for which the price agreed on is based on—

10 (A) adequate price competition; or

11 (B) prices set by law or regulation;

12 (2) for the acquisition of a commercial item; or

13 (3) in an exceptional case when the head of the procuring activity,

14 without delegation, determines that the requirements of this chapter

15 may be waived and justifies in writing the reasons for the determina16 tion.

17 (b) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR COMMER18 CIAL ITEMS.—In the case of a modification of a contract or subcontract for

19 a commercial item that is not covered by the exception to the submission

20 of certified cost or pricing data in paragraph (1) or (2) of subsection (a),

21 submission of certified cost or pricing data shall not be required under sec22 tion 3502 of this title if—

23 (1) the contract or subcontract being modified is a contract or sub24 contract for which submission of certified cost or pricing data may not

25 be required by reason of paragraph (1) or (2) of subsection (a); and

26 (2) the modification would not change the contract or subcontract

27 from a contract or subcontract for the acquisition of a commercial item

28 to a contract or subcontract for the acquisition of an item other than

29 a commercial item.

30 § 3504. Cost or pricing data on below-threshold contracts

31 (a) AUTHORITY TO REQUIRE SUBMISSION.—Subject to subsection (b),

32 when certified cost or pricing data are not required to be submitted by sec33 tion 3502 of this title for a contract, subcontract, or modification of a con34 tract or subcontract, the data may nevertheless be required to be submitted

35 by the head of the procuring activity, but only if the head of the procuring

36 activity determines that the data are necessary for the evaluation by the

37 agency of the reasonableness of the price of the contract, subcontract, or

38 modification of a contract or subcontract. In any case in which the head

39 of the procuring activity requires the data to be submitted under this sec40 tion, the head of the procuring activity shall justify in writing the reason

41 for the requirement.

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1 (b) EXCEPTION.—The head of the procuring activity may not require cer2 tified cost or pricing data to be submitted under this section for any con3 tract or subcontract, or modification of a contract or subcontract, covered

4 by the exceptions in section 3503(a)(1) or (2) of this title.

5 (c) DELEGATION OF AUTHORITY PROHIBITED.—The head of a procuring

6 activity may not delegate the functions under this section.

7 § 3505. Submission of other information

8 (a) AUTHORITY TO REQUIRE SUBMISSION.—When certified cost or pric9 ing data are not required to be submitted under this chapter for a contract,

10 subcontract, or modification of a contract or subcontract, the contracting of11 ficer shall require submission of data other than certified cost or pricing

12 data to the extent necessary to determine the reasonableness of the price

13 of the contract, subcontract, or modification of the contract or subcontract.

14 Except in the case of a contract or subcontract covered by the exceptions

15 in section 3503(a)(1) of this title, the contracting officer shall require that

16 the data submitted include, at a minimum, appropriate information on the

17 prices at which the same item or similar items have previously been sold

18 that is adequate for evaluating the reasonableness of the price for the pro19 curement.

20 (b) LIMITATIONS ON AUTHORITY.—The Federal Acquisition Regulation

21 shall include the following provisions regarding the types of information that

22 contracting officers may require under subsection (a):

23 (1) REASONABLE LIMITATIONS.—Reasonable limitations on requests

24 for sales data relating to commercial items.

25 (2) LIMITATION ON SCOPE OF REQUEST.—A requirement that a con26 tracting officer limit, to the maximum extent practicable, the scope of

27 any request for information relating to commercial items from an offer28 or to only that information that is in the form regularly maintained

29 by the offeror in commercial operations.

30 (3) INFORMATION NOT TO BE DISCLOSED.—A statement that any in31 formation received relating to commercial items that is exempt from

32 disclosure under section 552(b) of title 5 shall not be disclosed by the

33 Federal Government.

34 § 3506. Price reductions for defective cost or pricing data

35 (a) PROVISION REQUIRING ADJUSTMENT.—

36 (1) IN GENERAL.—A prime contract (or change or modification to

37 a prime contract) under which a certificate under section 3502(b) of

38 this title is required shall contain a provision that the price of the con39 tract to the Federal Government, including profit or fee, shall be ad40 justed to exclude any significant amount by which it may be deter41 mined by the head of the executive agency that the price was increased

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1 because the contractor (or any subcontractor required to make the cer2 tificate available) submitted defective cost or pricing data.

3 (2) WHAT CONSTITUTES DEFECTIVE COST OR PRICING DATA.—For

4 the purposes of this chapter, defective cost or pricing data are cost or

5 pricing data that, as of the date of agreement on the price of the con6 tract (or another date agreed on between the parties), were inaccurate,

7 incomplete, or noncurrent. If for purposes of the preceding sentence the

8 parties agree on a date other than the date of agreement on the price

9 of the contract, the date agreed on by the parties shall be as close to

10 the date of agreement on the price of the contract as is practicable.

11 (b) VALID DEFENSE.—In determining for purposes of a contract price

12 adjustment under a contract provision required by subsection (a) whether,

13 and to what extent, a contract price was increased because the contractor

14 (or a subcontractor) submitted defective cost or pricing data, it is a defense

15 that the Federal Government did not rely on the defective data submitted

16 by the contractor or subcontractor.

17 (c) INVALID DEFENSES.—It is not a defense to an adjustment of the

18 price of a contract under a contract provision required by subsection (a)

19 that—

20 (1) the price of the contract would not have been modified even if

21 accurate, complete, and current cost or pricing data had been sub22 mitted by the contractor or subcontractor because the contractor or

23 subcontractor—

24 (A) was the sole source of the property or services procured; or

25 (B) otherwise was in a superior bargaining position with respect

26 to the property or services procured;

27 (2) the contracting officer should have known that the cost or pricing

28 data in issue were defective even though the contractor or subcon29 tractor took no affirmative action to bring the character of the data

30 to the attention of the contracting officer;

31 (3) the contract was based on an agreement between the contractor

32 and the Federal Government about the total cost of the contract and

33 there was no agreement about the cost of each item procured under

34 the contract; or

35 (4) the prime contractor or subcontractor did not submit a certifi36 cation of cost or pricing data relating to the contract as required by

37 section 3502(b) of this title.

38 (d) OFFSETS.—

39 (1) WHEN ALLOWED.—A contractor shall be allowed to offset an

40 amount against the amount of a contract price adjustment under a

41 contract provision required by subsection (a) if—

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1 (A) the contractor certifies to the contracting officer (or to a

2 designated representative of the contracting officer) that, to the

3 best of the contractor’s knowledge and belief, the contractor is en4 titled to the offset; and

5 (B) the contractor proves that the cost or pricing data were

6 available before the date of agreement on the price of the contract

7 (or price of the modification), or, if applicable, consistent with

8 subsection (a)(2), another date agreed on by the parties, and that

9 the data were not submitted as specified in section 3502(c) of this

10 title before that date.

11 (2) WHEN NOT ALLOWED.—A contractor shall not be allowed to off12 set an amount otherwise authorized to be offset under paragraph (1)

13 if—

14 (A) the certification under section 3502(b) of this title with re15 spect to the cost or pricing data involved was known to be false

16 when signed; or

17 (B) the Federal Government proves that, had the cost or pricing

18 data referred to in paragraph (1)(B) been submitted to the Fed19 eral Government before date of agreement on the price of the con20 tract (or price of the modification), or, if applicable, under sub21 section (a)(2), another date agreed on by the parties, the submis22 sion of the cost or pricing data would not have resulted in an in23 crease in that price in the amount to be offset.

24 § 3507. Interest and penalties for certain overpayments

25 (a) IN GENERAL.—If the Federal Government makes an overpayment to

26 a contractor under a contract with an executive agency subject to this chap27 ter and the overpayment was due to the submission by the contractor of

28 defective cost or pricing data, the contractor shall be liable to the Federal

29 Government—

30 (1) for interest on the amount of the overpayment, to be computed—

31 (A) for the period beginning on the date the overpayment was

32 made to the contractor and ending on the date the contractor re33 pays the amount of the overpayment to the Federal Government;

34 and

35 (B) at the current rate prescribed by the Secretary of the

36 Treasury under section 6621 of the Internal Revenue Code of

37 1986 (26 U.S.C. 6621); and

38 (2) if the submission of the defective data was a knowing submission,

39 for an additional amount equal to the amount of the overpayment.

40 (b) LIABILITY NOT AFFECTED BY REFUSAL TO SUBMIT CERTIFI41 CATION.—Any liability under this section of a contractor that submits cost

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1 or pricing data but refuses to submit the certification required by section

2 3502(b) of this title with respect to the cost or pricing data is not affected

3 by the refusal to submit the certification.

4 § 3508. Right to examine contractor records

5 For the purpose of evaluating the accuracy, completeness, and currency

6 of cost or pricing data required to be submitted by this chapter, an execu7 tive agency shall have the authority provided by section 4706(b)(2) of this

8 title.

9 CHAPTER 37—AWARDING OF CONTRACTS

Sec.

3701. Basis of award and rejection.

3702. Sealed bids.

3703. Competitive proposals.

3704. Post-award debriefings.

3705. Pre-award debriefings.

3706. Encouragement of alternative dispute resolution.

3707. Antitrust violations.

3708. Protests.

10 § 3701. Basis of award and rejection

11 (a) AWARD.—An executive agency shall evaluate sealed bids and competi12 tive proposals, and award a contract, based solely on the factors specified

13 in the solicitation.

14 (b) REJECTION.—All sealed bids or competitive proposals received in re15 sponse to a solicitation may be rejected if the agency head determines that

16 rejection is in the public interest.

17 § 3702. Sealed bids

18 (a) OPENING OF BIDS.—Sealed bids shall be opened publicly at the time

19 and place stated in the solicitation.

20 (b) CRITERIA FOR AWARDING CONTRACT.—The executive agency shall

21 evaluate the bids in accordance with section 3701(a) of this title without

22 discussions with the bidders and, except as provided in section 3701(b) of

23 this title, shall award a contract with reasonable promptness to the respon24 sible source whose bid conforms to the solicitation and is most advantageous

25 to the Federal Government, considering only price and the other price-re26 lated factors included in the solicitation.

27 (c) NOTICE OF AWARD.—The award of a contract shall be made by trans28 mitting, in writing or by electronic means, notice of the award to the suc29 cessful bidder. Within 3 days after the date of contract award, the executive

30 agency shall notify, in writing or by electronic means, each bidder not

31 awarded the contract that the contract has been awarded.

32 § 3703. Competitive proposals

33 (a) EVALUATION AND AWARD.—An executive agency shall evaluate com34 petitive proposals in accordance with section 3701(a) of this title and may

35 award a contract—

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1 (1) after discussions with the offerors, provided that written or oral

2 discussions have been conducted with all responsible offerors who sub3 mit proposals within the competitive range; or

4 (2) based on the proposals received and without discussions with the

5 offerors (other than discussions conducted for the purpose of minor

6 clarification), if, as required by section 3305(b)(2)(B)(i) of this title,

7 the solicitation included a statement that proposals are intended to be

8 evaluated, and award made, without discussions unless discussions are

9 determined to be necessary.

10 (b) LIMIT ON NUMBER OF PROPOSALS.—If the contracting officer deter11 mines that the number of offerors that would otherwise be included in the

12 competitive range under subsection (a)(1) exceeds the number at which an

13 efficient competition can be conducted, the contracting officer may limit the

14 number of proposals in the competitive range, in accordance with the cri15 teria specified in the solicitation, to the greatest number that will permit

16 an efficient competition among the offerors rated most highly in accordance

17 with those criteria.

18 (c) CRITERIA FOR AWARDING CONTRACT.—Except as otherwise provided

19 in section 3701(b) of this title, the executive agency shall award a contract

20 with reasonable promptness to the responsible source whose proposal is most

21 advantageous to the Federal Government, considering only cost or price and

22 the other factors included in the solicitation.

23 (d) NOTICE OF AWARD.—The executive agency shall award the contract

24 by transmitting, in writing or by electronic means, notice of the award to

25 that source and, within 3 days after the date of contract award, shall notify,

26 in writing or by electronic means, all other offerors of the rejection of their

27 proposals.

28 § 3704. Post-award debriefings

29 (a) REQUEST FOR DEBRIEFING.—When a contract is awarded by the

30 head of an executive agency on the basis of competitive proposals, an unsuc31 cessful offeror, on written request received by the agency within 3 days after

32 the date on which the unsuccessful offeror receives the notification of the

33 contract award, shall be debriefed and furnished the basis for the selection

34 decision and contract award.

35 (b) WHEN DEBRIEFING TO BE CONDUCTED.—The executive agency shall

36 debrief the offeror within, to the maximum extent practicable, 5 days after

37 receipt of the request by the executive agency.

38 (c) INFORMATION TO BE PROVIDED.—The debriefing shall include, at a

39 minimum—

40 (1) the executive agency’s evaluation of the significant weak or defi41 cient factors in the offeror’s offer;

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1 (2) the overall evaluated cost and technical rating of the offer of the

2 contractor awarded the contract and the overall evaluated cost and

3 technical rating of the offer of the debriefed offeror;

4 (3) the overall ranking of all offers;

5 (4) a summary of the rationale for the award;

6 (5) in the case of a proposal that includes a commercial item that

7 is an end item under the contract, the make and model of the item

8 being provided in accordance with the offer of the contractor awarded

9 the contract; and

10 (6) reasonable responses to relevant questions posed by the debriefed

11 offeror as to whether source selection procedures set forth in the solici12 tation, applicable regulations, and other applicable authorities were fol13 lowed by the executive agency.

14 (d) INFORMATION NOT TO BE INCLUDED.—The debriefing may not in15 clude point-by-point comparisons of the debriefed offeror’s offer with other

16 offers and may not disclose any information that is exempt from disclosure

17 under section 552(b) of title 5.

18 (e) INCLUSION OF STATEMENT IN SOLICITATION.—Each solicitation for

19 competitive proposals shall include a statement that information described

20 in subsection (c) may be disclosed in post-award debriefings.

21 (f) AFTER SUCCESSFUL PROTEST.—If, within one year after the date of

22 the contract award and as a result of a successful procurement protest, the

23 executive agency seeks to fulfill the requirement under the protested con24 tract either on the basis of a new solicitation of offers or on the basis of

25 new best and final offers requested for that contract, the head of the execu26 tive agency shall make available to all offerors—

27 (1) the information provided in debriefings under this section regard28 ing the offer of the contractor awarded the contract; and

29 (2) the same information that would have been provided to the origi30 nal offerors.

31 (g) SUMMARY TO BE INCLUDED IN FILE.—The contracting officer shall

32 include a summary of the debriefing in the contract file.

33 § 3705. Pre-award debriefings

34 (a) REQUEST FOR DEBRIEFING.—When the contracting officer excludes

35 an offeror submitting a competitive proposal from the competitive range (or

36 otherwise excludes that offeror from further consideration prior to the final

37 source selection decision), the excluded offeror may request in writing, with38 in 3 days after the date on which the excluded offeror receives notice of its

39 exclusion, a debriefing prior to award.

40 (b) WHEN DEBRIEFING TO BE CONDUCTED.—The contracting officer

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1 ticable but may refuse the request for a debriefing if it is not in the best

2 interests of the Federal Government to conduct a debriefing at that time.

3 (c) PRECONDITION FOR POST-AWARD DEBRIEFING.—The contracting of4 ficer is required to debrief an excluded offeror in accordance with section

5 3704 of this title only if that offeror requested and was refused a pre-award

6 debriefing under subsections (a) and (b).

7 (d) INFORMATION TO BE PROVIDED.—The debriefing conducted under

8 this section shall include—

9 (1) the executive agency’s evaluation of the significant elements in

10 the offeror’s offer;

11 (2) a summary of the rationale for the offeror’s exclusion; and

12 (3) reasonable responses to relevant questions posed by the debriefed

13 offeror as to whether source selection procedures set forth in the solici14 tation, applicable regulations, and other applicable authorities were fol15 lowed by the executive agency.

16 (e) INFORMATION NOT TO BE DISCLOSED.—The debriefing conducted

17 pursuant to this section may not disclose the number or identity of other

18 offerors and shall not disclose information about the content, ranking, or

19 evaluation of other offerors’ proposals.

20 (f) SUMMARY TO BE INCLUDED IN FILE.—The contracting officer shall

21 include a summary of the debriefing in the contract file.

22 § 3706. Encouragement of alternative dispute resolution

23 The Federal Acquisition Regulation shall include a provision encouraging

24 the use of alternative dispute resolution techniques to provide informal, ex25 peditious, and inexpensive procedures for an offeror to consider using before

26 filing a protest, prior to the award of a contract, of the exclusion of the

27 offeror from the competitive range (or otherwise from further consideration)

28 for that contract.

29 § 3707. Antitrust violations

30 If the agency head considers that a bid or proposal evidences a violation

31 of the antitrust laws, the agency head shall refer the bid or proposal to the

32 Attorney General for appropriate action.

33 § 3708. Protests

34 (a) PROTEST FILE.—

35 (1) ESTABLISHMENT AND ACCESS.—If, in the case of a solicitation

36 for a contract issued by, or an award or proposed award of a contract

37 by, the head of an executive agency, a protest is filed pursuant to the

38 procedures in subchapter V of chapter 35 of title 31, and an actual

39 or prospective offeror requests, a file of the protest shall be established

40 by the procuring activity and reasonable access shall be provided to ac41 tual or prospective offerors.

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1 (2) REDACTED INFORMATION.—Information exempt from disclosure

2 under section 552 of title 5 may be redacted in a file established pursu3 ant to paragraph (1) unless an applicable protective order provides oth4 erwise.

5 (b) AGENCY ACTIONS ON PROTESTS.—If, in connection with a protest,

6 the head of an executive agency determines that a solicitation, proposed

7 award, or award does not comply with the requirements of law or regula8 tion, the head of the executive agency may—

9 (1) take any action set out in subparagraphs (A) to (F) of subsection

10 (b)(1) of section 3554 of title 31; and

11 (2) pay costs described in paragraph (1) of section 3554(c) of title

12 31 within the limits referred to in paragraph (2) of section 3554(c).

13 CHAPTER 39—SPECIFIC TYPES OF CONTRACTS

Sec.

3901. Contracts awarded using procedures other than sealed-bid procedures.

3902. Severable services contracts for periods crossing fiscal years.

3903. Multiyear contracts.

3904. Contract authority for severable services contracts and multiyear contracts.

3905. Cost contracts.

14 § 3901. Contracts awarded using procedures other than

15 sealed-bid procedures

16 (a) AUTHORIZED TYPES.—Except as provided in section 3905 of this

17 title, contracts awarded after using procedures other than sealed-bid proce18 dures may be of any type which in the opinion of the agency head will pro19 mote the best interests of the Federal Government.

20 (b) REQUIRED WARRANTY.—

21 (1) CONTENT.—Every contract awarded after using procedures other

22 than sealed-bid procedures shall contain a suitable warranty, as deter23 mined by the agency head, by the contractor that no person or selling

24 agency has been employed or retained to solicit or secure the contract

25 on an agreement or understanding for a commission, percentage, bro26 kerage, or contingent fee, except for bona fide employees or bona fide

27 established commercial or selling agencies the contractor maintains to

28 secure business.

29 (2) REMEDY FOR BREACH OR VIOLATION.—For the breach or viola30 tion of the warranty, the Federal Government may annul the contract

31 without liability or deduct from the contract price or consideration the

32 full amount of the commission, percentage, brokerage, or contingent

33 fee.

34 (3) NONAPPLICATION.—Paragraph (1) does not apply to a contract

35 for an amount that is not greater than the simplified acquisition

36 threshold or to a contract for the acquisition of commercial items.

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1 § 3902. Severable services contracts for periods crossing fis2 cal years

3 (a) AUTHORITY TO ENTER INTO CONTRACT.—The head of an executive

4 agency may enter into a contract for the procurement of severable services

5 for a period that begins in one fiscal year and ends in the next fiscal year

6 if (without regard to any option to extend the period of the contract) the

7 contract period does not exceed one year.

8 (b) OBLIGATION OF AMOUNTS.—Amounts made available for a fiscal year

9 may be obligated for the total amount of a contract entered into under the

10 authority of this section.

11 § 3903. Multiyear contracts

12 (a) DEFINITION.—In this section, a multiyear contract is a contract for

13 the purchase of property or services for more than one, but not more than

14 5, program years.

15 (b) AUTHORITY TO ENTER INTO CONTRACT.—An executive agency may

16 enter into a multiyear contract for the acquisition of property or services

17 if—

18 (1) amounts are available and obligated for the contract, for the full

19 period of the contract or for the first fiscal year in which the contract

20 is in effect, and for the estimated costs associated with a necessary ter21 mination of the contract; and

22 (2) the executive agency determines that—

23 (A) the need for the property or services is reasonably firm and

24 continuing over the period of the contract; and

25 (B) a multiyear contract will serve the best interests of the Fed26 eral Government by encouraging full and open competition or pro27 moting economy in administration, performance, and operation of

28 the agency’s programs.

29 (c) TERMINATION CLAUSE.—A multiyear contract entered into under the

30 authority of this section shall include a clause that provides that the con31 tract shall be terminated if amounts are not made available for the continu32 ation of the contract in a fiscal year covered by the contract. Amounts avail33 able for paying termination costs shall remain available for that purpose

34 until the costs associated with termination of the contract are paid.

35 (d) CANCELLATION CEILING NOTICE.—Before a contract described in

36 subsection (b) that contains a clause setting forth a cancellation ceiling in

37 excess of $10,000,000 may be awarded, the executive agency shall give writ38 ten notification of the proposed contract and of the proposed cancellation

39 ceiling for that contract to Congress. The contract may not be awarded until

40 the end of the 30-day period beginning on the date of the notification.

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1 (e) CONTINGENCY CLAUSE FOR APPROPRIATION OF AMOUNTS.—A

2 multiyear contract may provide that performance under the contract after

3 the first year of the contract is contingent on the appropriation of amounts

4 and (if the contract does so provide) that a cancellation payment shall be

5 made to the contractor if the amounts are not appropriated.

6 (f) OTHER LAW NOT AFFECTED.—This section does not modify or affect

7 any other provision of law that authorizes multiyear contracts.

8 § 3904. Contract authority for severable services contracts

9 and multiyear contracts

10 (a) COMPTROLLER GENERAL.—The Comptroller General may use avail11 able amounts to enter into contracts for the procurement of severable serv12 ices for a period that begins in one fiscal year and ends in the next fiscal

13 year and to enter into multiyear contracts for the acquisition of property

14 and nonaudit-related services to the same extent as executive agencies under

15 sections 3902 and 3903 of this title.

16 (b) LIBRARY OF CONGRESS.—The Library of Congress may use available

17 amounts to enter into contracts for the lease or procurement of severable

18 services for a period that begins in one fiscal year and ends in the next fis19 cal year and to enter into multiyear contracts for the acquisition of property

20 and services pursuant to sections 3902 and 3903 of this title.

21 (c) CHIEF ADMINISTRATIVE OFFICER OF THE HOUSE OF REPRESENTA22 TIVES.—The Chief Administrative Officer of the House of Representatives

23 may enter into—

24 (1) contracts for the procurement of severable services for a period

25 that begins in one fiscal year and ends in the next fiscal year to the

26 same extent as the head of an executive agency under the authority of

27 section 3902 of this title; and

28 (2) multiyear contracts for the acquisitions of property and

29 nonaudit-related services to the same extent as executive agencies

30 under the authority of section 3903 of this title.

31 (d) CONGRESSIONAL BUDGET OFFICE.—The Congressional Budget Office

32 may use available amounts to enter into contracts for the procurement of

33 severable services for a period that begins in one fiscal year and ends in

34 the next fiscal year and may enter into multiyear contracts for the acquisi35 tion of property and services to the same extent as executive agencies under

36 the authority of sections 3902 and 3903 of this title.

37 (e) SECRETARY AND SERGEANT AT ARMS AND DOORKEEPER OF THE

38 SENATE.—Subject to regulations prescribed by the Committee on Rules and

39 Administration of the Senate, the Secretary and the Sergeant at Arms and

40 Doorkeeper of the Senate may enter into—

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1 (1) contracts for the procurement of severable services for a period

2 that begins in one fiscal year and ends in the next fiscal year to the

3 same extent and under the same conditions as the head of an executive

4 agency under the authority of section 3902 of this title; and

5 (2) multiyear contracts for the acquisition of property and services

6 to the same extent and under the same conditions as executive agencies

7 under the authority of section 3903 of this title.

8 (f) CAPITOL POLICE.—The United States Capitol Police may enter into—

9 (1) contracts for the procurement of severable services for a period

10 that begins in one fiscal year and ends in the next fiscal year to the

11 same extent as the head of an executive agency under the authority of

12 section 3902 of this title; and

13 (2) multiyear contracts for the acquisitions of property and

14 nonaudit-related services to the same extent as executive agencies

15 under the authority of section 3903 of this title.

16 (g) ARCHITECT OF THE CAPITOL.—The Architect of the Capitol may

17 enter into—

18 (1) contracts for the procurement of severable services for a period

19 that begins in one fiscal year and ends in the next fiscal year to the

20 same extent as the head of an executive agency under the authority of

21 section 3902 of this title; and

22 (2) multiyear contracts for the acquisitions of property and

23 nonaudit-related services to the same extent as executive agencies

24 under the authority of section 3903 of this title.

25 (h) SECRETARY OF THE SMITHSONIAN INSTITUTION.—The Secretary of

26 the Smithsonian Institution may enter into—

27 (1) contracts for the procurement of severable services for a period

28 that begins in one fiscal year and ends in the next fiscal year under

29 the authority of section 3902 of this title; and

30 (2) multiyear contracts for the acquisition of property and services

31 under the authority of section 3903 of this title.

32 § 3905. Cost contracts

33 (a) COST-PLUS-A-PERCENTAGE-OF-COST CONTRACTS DISALLOWED.—

34 The cost-plus-a-percentage-of-cost system of contracting shall not be used.

35 (b) COST-PLUS-A-FIXED-FEE CONTRACTS.—

36 (1) IN GENERAL.—Except as provided in paragraphs (2) and (3), the

37 fee in a cost-plus-a-fixed-fee contract shall not exceed 10 percent of the

38 estimated cost of the contract, not including the fee, as determined by

39 the agency head at the time of entering into the contract.

40 (2) EXPERIMENTAL, DEVELOPMENTAL, OR RESEARCH WORK.—The

41 fee in a cost-plus-a-fixed-fee contract for experimental, developmental,

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1 or research work shall not exceed 15 percent of the estimated cost of

2 the contract, not including the fee.

3 (3) ARCHITECTURAL OR ENGINEERING SERVICES.—The fee in a

4 cost-plus-a-fixed-fee contract for architectural or engineering services

5 relating to any public works or utility project may include the contrac6 tor’s costs and shall not exceed 6 percent of the estimated cost, not

7 including the fee, as determined by the agency head at the time of en8 tering into the contract, of the project to which the fee applies.

9 (c) NOTIFICATION.—All cost and cost-plus-a-fixed-fee contracts shall pro10 vide for advance notification by the contractor to the procuring agency of

11 any subcontract on a cost-plus-a-fixed-fee basis and of any fixed-price sub12 contract or purchase order which exceeds in dollar amount either the sim13 plified acquisition threshold or 5 percent of the total estimated cost of the

14 prime contract.

15 (d) RIGHT TO AUDIT.—A procuring agency, through any authorized rep16 resentative thereof, has the right to inspect the plans and to audit the books

17 and records of a prime contractor or subcontractor engaged in the perform18 ance of a cost or cost-plus-a-fixed-fee contract.

19 CHAPTER 41—TASK AND DELIVERY ORDER CONTRACTS

Sec.

4101. Definitions.

4102. Authorities or responsibilities not affected.

4103. General authority.

4104. Guidance on use of task and delivery order contracts.

4105. Advisory and assistance services.

4106. Orders.

20 § 4101. Definitions

21 In this chapter:

22 (1) DELIVERY ORDER CONTRACT.—The term ‘‘delivery order con23 tract’’ means a contract for property that—

24 (A) does not procure or specify a firm quantity of property

25 (other than a minimum or maximum quantity); and

26 (B) provides for the issuance of orders for the delivery of prop27 erty during the period of the contract.

28 (2) TASK ORDER CONTRACT.—The term ‘‘task order contract’’

29 means a contract for services that—

30 (A) does not procure or specify a firm quantity of services

31 (other than a minimum or maximum quantity); and

32 (B) provides for the issuance of orders for the performance of

33 tasks during the period of the contract.

34 § 4102. Authorities or responsibilities not affected

35 This chapter does not modify or supersede, and is not intended to impair

36 or restrict, authorities or responsibilities under sections 1101 to 1104 of

37 title 40.

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1 § 4103. General authority

2 (a) AUTHORITY TO AWARD.—Subject to the requirements of this section,

3 section 4106 of this title, and other applicable law, the head of an executive

4 agency may enter into a task or delivery order contract for procurement of

5 services or property.

6 (b) SOLICITATION.—The solicitation for a task or delivery order contract

7 shall include—

8 (1) the period of the contract, including the number of options to

9 extend the contract and the period for which the contract may be ex10 tended under each option;

11 (2) the maximum quantity or dollar value of the services or property

12 to be procured under the contract; and

13 (3) a statement of work, specifications, or other description that rea14 sonably describes the general scope, nature, complexity, and purposes

15 of the services or property to be procured under the contract.

16 (c) APPLICABILITY OF RESTRICTION ON USE OF NONCOMPETITIVE PRO17 CEDURES.—The head of an executive agency may use procedures other than

18 competitive procedures to enter into a task or delivery order contract under

19 this section only if an exception in section 3303(a) of this title applies to

20 the contract and the use of those procedures is approved in accordance with

21 section 3303(d) of this title.

22 (d) SINGLE AND MULTIPLE CONTRACT AWARDS.—

23 (1) EXERCISE OF AUTHORITY.—The head of an executive agency

24 may exercise the authority provided in this section—

25 (A) to award a single task or delivery order contract; or

26 (B) if the solicitation states that the head of the executive agen27 cy has the option to do so, to award separate task or delivery

28 order contracts for the same or similar services or property to 2

29 or more sources.

30 (2) DETERMINATION NOT REQUIRED.—No determination under sec31 tion 3302 of this title is required for an award of multiple task or de32 livery order contracts under paragraph (1)(B).

33 (3) REGULATIONS.—Regulations implementing this subsection shall

34 establish—

35 (A) a preference for awarding, to the maximum extent prac36 ticable, multiple task or delivery order contracts for the same or

37 similar services or property under paragraph (1)(B); and

38 (B) criteria for determining when award of multiple task or de39 livery order contracts would not be in the best interest of the Fed40 eral Government.

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1 (e) CONTRACT MODIFICATIONS.—A task or delivery order may not in2 crease the scope, period, or maximum value of the task or delivery order

3 contract under which the order is issued. The scope, period, or maximum

4 value of the contract may be increased only by modification of the contract.

5 (f) INAPPLICABILITY TO CONTRACTS FOR ADVISORY AND ASSISTANCE

6 SERVICES.—Except as otherwise specifically provided in section 4105 of this

7 title, this section does not apply to a task or delivery order contract for the

8 acquisition of advisory and assistance services (as defined in section 1105(g)

9 of title 31).

10 (g) RELATIONSHIP TO OTHER CONTRACTING AUTHORITY.—Nothing in

11 this section may be construed to limit or expand any authority of the head

12 of an executive agency or the Administrator of General Services to enter

13 into schedule, multiple award, or task or delivery order contracts under any

14 other provision of law.

15 § 4104. Guidance on use of task and delivery order contracts

16 (a) GUIDANCE IN FEDERAL ACQUISITION REGULATION.—The Federal

17 Acquisition Regulation issued in accordance with sections 1121(b) and

18 1303(a)(1) of this title shall provide guidance to agencies on the appropriate

19 use of task and delivery order contracts in accordance with this chapter and

20 sections 2304a to 2304d of title 10.

21 (b) CONTENT OF REGULATIONS.—The regulations issued pursuant to

22 subsection (a) at a minimum shall provide specific guidance on—

23 (1) the appropriate use of Government-wide and other multiagency

24 contracts entered into in accordance with this chapter and sections

25 2304a to 2304d of title 10; and

26 (2) steps that agencies should take in entering into and admin27 istering multiple award task and delivery order contracts to ensure

28 compliance with the requirement in—

29 (A) section 11312 of title 40 for capital planning and invest30 ment control in purchases of information technology products and

31 services;

32 (B) section 4106(c) of this title and section 2304c(b) of title 10

33 to ensure that all contractors are afforded a fair opportunity to

34 be considered for the award of task and delivery orders; and

35 (C) section 4106(d) of this title and section 2304c(c) of title 10

36 for a statement of work in each task or delivery order issued that

37 clearly specifies all tasks to be performed or property to be deliv38 ered under the order.

39 (c) FEDERAL SUPPLY SCHEDULES PROGRAM.—The Administrator for

40 Federal Procurement Policy shall consult with the Administrator of General

41 Services to assess the effectiveness of the multiple awards schedule program

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1 of the General Services Administration referred to in section 152(3) of this

2 title that is administered as the Federal Supply Schedules program. The as3 sessment shall include examination of—

4 (1) the administration of the program by the Administrator of Gen5 eral Services; and

6 (2) the ordering and program practices followed by Federal customer

7 agencies in using schedules established under the program.

8 § 4105. Advisory and assistance services

9 (a) DEFINITION.—In this section, the term ‘‘advisory and assistance serv10 ices’’ has the same meaning given that term in section 1105(g) of title 31.

11 (b) AUTHORITY TO AWARD.—

12 (1) IN GENERAL.—Subject to the requirements of this section, sec13 tion 4106 of this title, and other applicable law, the head of an execu14 tive agency may enter into a task order contract for procurement of

15 advisory and assistance services.

16 (2) ONLY UNDER THIS SECTION.—The head of an executive agency

17 may enter into a task order contract for advisory and assistance serv18 ices only under this section.

19 (c) LIMITATION ON CONTRACT PERIOD.—The period of a task order con20 tract entered into under this section, including all periods of extensions of

21 the contract under options, modifications, or otherwise, may not exceed 5

22 years unless a longer period is specifically authorized in a law that is appli23 cable to the contract.

24 (d) CONTENT OF NOTICE.—The notice required by section 1707 of this

25 title and section 8(e) of the Small Business Act (15 U.S.C. 637(e)) shall

26 reasonably and fairly describe the general scope, magnitude, and duration

27 of the proposed task order contract in a manner that would reasonably en28 able a potential offeror to decide whether to request the solicitation and con29 sider submitting an offer.

30 (e) REQUIRED CONTENT OF SOLICITATION AND CONTRACT.—

31 (1) SOLICITATION.—The solicitation shall include the information

32 (regarding services) described in section 4103(b) of this title.

33 (2) CONTRACT.—A task order contract entered into under this sec34 tion shall contain the same information that is required by paragraph

35 (1) to be included in the solicitation of offers for that contract.

36 (f) MULTIPLE AWARDS.—

37 (1) AUTHORITY TO MAKE MULTIPLE AWARDS.—On the basis of one

38 solicitation, the head of an executive agency may award separate task

39 order contracts under this section for the same or similar services to

40 2 or more sources if the solicitation states that the head of the execu41 tive agency has the option to do so.

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1 (2) CONTENT OF SOLICITATION.—In the case of a task order con2 tract for advisory and assistance services to be entered into under this

3 section, if the contract period is to exceed 3 years and the contract

4 amount is estimated to exceed $10,000,000 (including all options), the

5 solicitation shall—

6 (A) provide for a multiple award authorized under paragraph

7 (1); and

8 (B) include a statement that the head of the executive agency

9 may also elect to award only one task order contract if the head

10 of the executive agency determines in writing that only one of the

11 offerors is capable of providing the services required at the level

12 of quality required.

13 (3) NONAPPLICATION.—Paragraph (2) does not apply in the case of

14 a solicitation for which the head of the executive agency concerned de15 termines in writing that, because the services required under the con16 tract are unique or highly specialized, it is not practicable to award

17 more than one contract.

18 (g) CONTRACT MODIFICATIONS.—

19 (1) INCREASE IN SCOPE, PERIOD, OR MAXIMUM VALUE OF CONTRACT

20 ONLY BY MODIFICATION OF CONTRACT.—A task order may not in21 crease the scope, period, or maximum value of the task order contract

22 under which the order is issued. The scope, period, or maximum value

23 of the contract may be increased only by modification of the contract.

24 (2) USE OF COMPETITIVE PROCEDURES.—Unless use of procedures

25 other than competitive procedures is authorized by an exception in sec26 tion 3303(a) of this title and approved in accordance with section

27 3303(d) of this title, competitive procedures shall be used for making

28 such a modification.

29 (3) NOTICE.—Notice regarding the modification shall be provided in

30 accordance with section 1707 of this title and section 8(e) of the Small

31 Business Act (15 U.S.C. 637(e)).

32 (h) CONTRACT EXTENSIONS.—

33 (1) WHEN CONTRACT MAY BE EXTENDED.—Notwithstanding the

34 limitation on the contract period set forth in subsection (c) or in a so35 licitation or contract pursuant to subsection (f), a contract entered into

36 by the head of an executive agency under this section may be extended

37 on a sole-source basis for a period not exceeding 6 months if the head

38 of the executive agency determines that—

39 (A) the award of a follow-on contract has been delayed by cir40 cumstances that were not reasonably foreseeable at the time the

41 initial contract was entered into; and

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1 (B) the extension is necessary to ensure continuity of the receipt

2 of services pending the award of, and commencement of perform3 ance under, the follow-on contract.

4 (2) LIMIT OF ONE EXTENSION.—A task order contract may be ex5 tended under paragraph (1) only once and only in accordance with the

6 limitations and requirements of this subsection.

7 (i) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not

8 apply to a contract for the acquisition of property or services that includes

9 acquisition of advisory and assistance services if the head of the executive

10 agency entering into the contract determines that, under the contract, advi11 sory and assistance services are necessarily incident to, and not a significant

12 component of, the contract.

13 § 4106. Orders

14 (a) APPLICATION.—This section applies to task and delivery order con15 tracts entered into under sections 4103 and 4105 of this title.

16 (b) ACTIONS NOT REQUIRED FOR ISSUANCE OF ORDERS.—The following

17 actions are not required for issuance of a task or delivery order under a

18 task or delivery order contract:

19 (1) A separate notice for the order under section 1707 of this title

20 or section 8(e) of the Small Business Act (15 U.S.C. 637(e)).

21 (2) Except as provided in subsection (c), a competition (or a waiver

22 of competition approved in accordance with section 3303(d) of this

23 title) that is separate from that used for entering into the contract.

24 (c) MULTIPLE AWARD CONTRACTS.—When multiple contracts are award25 ed under section 4103(d)(1)(B) or 4105(f) of this title, all contractors

26 awarded the contracts shall be provided a fair opportunity to be considered,

27 pursuant to procedures set forth in the contracts, for each task or delivery

28 order in excess of $2,500 that is to be issued under any of the contracts,

29 unless—

30 (1) the executive agency’s need for the services or property ordered

31 is of such unusual urgency that providing the opportunity to all of

32 those contractors would result in unacceptable delays in fulfilling that

33 need;

34 (2) only one of those contractors is capable of providing the services

35 or property required at the level of quality required because the services

36 or property ordered are unique or highly specialized;

37 (3) the task or delivery order should be issued on a sole-source basis

38 in the interest of economy and efficiency because it is a logical follow39 on to a task or delivery order already issued on a competitive basis;

40 or

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1 (4) it is necessary to place the order with a particular contractor to

2 satisfy a minimum guarantee.

3 (d) STATEMENT OF WORK.—A task or delivery order shall include a

4 statement of work that clearly specifies all tasks to be performed or prop5 erty to be delivered under the order.

6 (e) PROTESTS.—A protest is not authorized in connection with the

7 issuance or proposed issuance of a task or delivery order except for a pro8 test on the ground that the order increases the scope, period, or maximum

9 value of the contract under which the order is issued.

10 (f) TASK AND DELIVERY ORDER OMBUDSMAN.—

11 (1) APPOINTMENT OR DESIGNATION AND RESPONSIBILITIES.—The

12 head of each executive agency who awards multiple task or delivery

13 order contracts under section 4103(d)(1)(B) or 4105(f) of this title

14 shall appoint or designate a task and delivery order ombudsman who

15 shall be responsible for reviewing complaints from the contractors on

16 those contracts and ensuring that all of the contractors are afforded

17 a fair opportunity to be considered for task or delivery orders when re18 quired under subsection (c).

19 (2) WHO IS ELIGIBLE.—The task and delivery order ombudsman

20 shall be a senior agency official who is independent of the contracting

21 officer for the contracts and may be the executive agency’s advocate

22 for competition.

23 CHAPTER 43—ALLOWABLE COSTS

Sec.

4301. Definitions.

4302. Adjustment of threshold amount of covered contract.

4303. Effect of submission of unallowable costs.

4304. Specific costs not allowable.

4305. Required regulations.

4306. Applicability of regulations to subcontractors.

4307. Contractor certification.

4308. Penalties for submission of cost known to be unallowable.

4309. Burden of proof on contractor.

4310. Proceeding costs not allowable.

24 § 4301. Definitions

25 In this chapter:

26 (1) COMPENSATION.—The term ‘‘compensation’’, for a fiscal year,

27 means the total amount of wages, salary, bonuses, and deferred com28 pensation for the fiscal year, whether paid, earned, or otherwise accru29 ing, as recorded in an employer’s cost accounting records for the fiscal

30 year.

31 (2) COVERED CONTRACT.—The term ‘‘covered contract’’ means a

32 contract for an amount in excess of $500,000 that is entered into by

33 an executive agency, except that the term does not include a fixed-price

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1 contract without cost incentives or any firm fixed-price contract for the

2 purchase of commercial items.

3 (3) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year estab4 lished by a contractor for accounting purposes.

5 (4) SENIOR EXECUTIVE.—The term ‘‘senior executive’’, with respect

6 to a contractor, means the 5 most highly compensated employees in

7 management positions at each home office and each segment of the

8 contractor.

9 § 4302. Adjustment of threshold amount of covered contract

10 Effective on October 1 of each year that is divisible by 5, the amount

11 set forth in section 4301(2) of this title shall be adjusted to the equivalent

12 amount in constant fiscal year 1994 dollars. An adjusted amount that is

13 not evenly divisible by $50,000 shall be rounded to the nearest multiple of

14 $50,000. If an amount is evenly divisible by $25,000 but is not evenly divis15 ible by $50,000, the amount shall be rounded to the next higher multiple

16 of $50,000.

17 § 4303. Effect of submission of unallowable costs

18 (a) INDIRECT COST THAT VIOLATES FEDERAL ACQUISITION REGULA19 TION COST PRINCIPLE.—An executive agency shall require that a covered

20 contract provide that if the contractor submits to the executive agency a

21 proposal for settlement of indirect costs incurred by the contractor for any

22 period after those costs have been accrued and if that proposal includes the

23 submission of a cost that is unallowable because the cost violates a cost

24 principle in the Federal Acquisition Regulation or an executive agency sup25 plement to the Federal Acquisition Regulation, the cost shall be disallowed.

26 (b) PENALTY FOR VIOLATION OF COST PRINCIPLE.—

27 (1) UNALLOWABLE COST IN PROPOSAL.—If the executive agency de28 termines that a cost submitted by a contractor in its proposal for set29 tlement is expressly unallowable under a cost principle referred to in

30 subsection (a) that defines the allowability of specific selected costs, the

31 executive agency shall assess a penalty against the contractor in an

32 amount equal to—

33 (A) the amount of the disallowed cost allocated to covered con34 tracts for which a proposal for settlement of indirect costs has

35 been submitted; plus

36 (B) interest (to be computed based on provisions in the Federal

37 Acquisition Regulation) to compensate the Federal Government

38 for the use of the amount which a contractor has been paid in ex39 cess of the amount to which the contractor was entitled.

40 (2) COST DETERMINED TO BE UNALLOWABLE BEFORE PROPOSAL

41 SUBMITTED.—If the executive agency determines that a proposal for

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1 settlement of indirect costs submitted by a contractor includes a cost

2 determined to be unallowable in the case of that contractor before the

3 submission of that proposal, the executive agency shall assess a penalty

4 against the contractor in an amount equal to 2 times the amount of

5 the disallowed cost allocated to covered contracts for which a proposal

6 for settlement of indirect costs has been submitted.

7 (c) WAIVER OF PENALTY.—The Federal Acquisition Regulation shall pro8 vide for a penalty under subsection (b) to be waived in the case of a con9 tractor’s proposal for settlement of indirect costs when—

10 (1) the contractor withdraws the proposal before the formal initiation

11 of an audit of the proposal by the Federal Government and resubmits

12 a revised proposal;

13 (2) the amount of unallowable costs subject to the penalty is insig14 nificant; or

15 (3) the contractor demonstrates, to the contracting officer’s satisfac16 tion, that—

17 (A) it has established appropriate policies and personnel train18 ing and an internal control and review system that provide assur19 ances that unallowable costs subject to penalties are precluded

20 from being included in the contractor’s proposal for settlement of

21 indirect costs; and

22 (B) the unallowable costs subject to the penalty were inadvert23 ently incorporated into the proposal.

24 (d) APPLICABILITY OF CONTRACT DISPUTES PROCEDURE.—An action of

25 an executive agency under subsection (a) or (b)—

26 (1) shall be considered a final decision for the purposes of section

27 6903 of this title; and

28 (2) is appealable in the manner provided in section 6904(a) of this

29 title.

30 § 4304. Specific costs not allowable

31 (a) SPECIFIC COSTS.—The following costs are not allowable under a cov32 ered contract:

33 (1) Costs of entertainment, including amusement, diversion, and so34 cial activities, and any costs directly associated with those costs (such

35 as tickets to shows or sports events, meals, lodging, rentals, transpor36 tation, and gratuities).

37 (2) Costs incurred to influence (directly or indirectly) legislative ac38 tion on any matter pending before Congress, a State legislature, or a

39 legislative body of a political subdivision of a State.

40 (3) Costs incurred in defense of any civil or criminal fraud pro41 ceeding or similar proceeding (including filing of any false certification)

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1 brought by the Federal Government where the contractor is found lia2 ble or had pleaded nolo contendere to a charge of fraud or similar pro3 ceeding (including filing of a false certification).

4 (4) Payments of fines and penalties resulting from violations of, or

5 failure to comply with, Federal, State, local, or foreign laws and regula6 tions, except when incurred as a result of compliance with specific

7 terms and conditions of the contract or specific written instructions

8 from the contracting officer authorizing in advance those payments in

9 accordance with applicable provisions of the Federal Acquisition Regu10 lation.

11 (5) Costs of membership in any social, dining, or country club or or12 ganization.

13 (6) Costs of alcoholic beverages.

14 (7) Contributions or donations, regardless of the recipient.

15 (8) Costs of advertising designed to promote the contractor or its

16 products.

17 (9) Costs of promotional items and memorabilia, including models,

18 gifts, and souvenirs.

19 (10) Costs for travel by commercial aircraft that exceed the amount

20 of the standard commercial fare.

21 (11) Costs incurred in making any payment (commonly known as a

22 ‘‘golden parachute payment’’) that is—

23 (A) in an amount in excess of the normal severance pay paid

24 by the contractor to an employee on termination of employment;

25 and

26 (B) paid to the employee contingent on, and following, a change

27 in management control over, or ownership of, the contractor or a

28 substantial portion of the contractor’s assets.

29 (12) Costs of commercial insurance that protects against the costs

30 of the contractor for correction of the contractor’s own defects in mate31 rials or workmanship.

32 (13) Costs of severance pay paid by the contractor to foreign nation33 als employed by the contractor under a service contract performed out34 side the United States, to the extent that the amount of severance pay

35 paid in any case exceeds the amount paid in the industry involved

36 under the customary or prevailing practice for firms in that industry

37 providing similar services in the United States, as determined under

38 the Federal Acquisition Regulation.

39 (14) Costs of severance pay paid by the contractor to a foreign na40 tional employed by the contractor under a service contract performed

41 in a foreign country if the termination of the employment of the foreign

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1 national is the result of the closing of, or the curtailment of activities

2 at, a Federal Government facility in that country at the request of the

3 government of that country.

4 (15) Costs incurred by a contractor in connection with any criminal,

5 civil, or administrative proceeding commenced by the Federal Govern6 ment or a State, to the extent provided in section 4310 of this title.

7 (16) Costs of compensation of senior executives of contractors for a

8 fiscal year, regardless of the contract funding source, to the extent that

9 the compensation exceeds the benchmark compensation amount deter10 mined applicable for the fiscal year by the Administrator under section

11 1127 of this title.

12 (b) WAIVER OF SEVERANCE PAY RESTRICTIONS FOR FOREIGN NATION13 ALS.—

14 (1) EXECUTIVE AGENCY DETERMINATION.—Pursuant to the Federal

15 Acquisition Regulation and subject to the availability of appropriations,

16 an executive agency, in awarding a covered contract, may waive the ap17 plication of paragraphs (13) and (14) of subsection (a) to that contract

18 if the executive agency determines that—

19 (A) the application of those provisions to that contract would

20 adversely affect the continuation of a program, project, or activity

21 that provides significant support services for employees of the ex22 ecutive agency posted outside the United States;

23 (B) the contractor has taken (or has established plans to take)

24 appropriate actions within the contractor’s control to minimize the

25 amount and number of incidents of the payment of severance pay

26 by the contractor to employees under the contract who are foreign

27 nationals; and

28 (C) the payment of severance pay is necessary to comply with

29 a law that is generally applicable to a significant number of busi30 nesses in the country in which the foreign national receiving the

31 payment performed services under the contract or is necessary to

32 comply with a collective bargaining agreement.

33 (2) SOLICITATION TO INCLUDE STATEMENT ABOUT WAIVER.—An ex34 ecutive agency shall include in the solicitation for a covered contract

35 a statement indicating—

36 (A) that a waiver has been granted under paragraph (1) for the

37 contract; or

38 (B) whether the executive agency will consider granting a waiver

39 and, if the executive agency will consider granting a waiver, the

40 criteria to be used in granting the waiver.

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1 (3) DETERMINATION TO BE MADE BEFORE CONTRACT AWARDED.—

2 An executive agency shall make the final determination whether to

3 grant a waiver under paragraph (1) with respect to a covered contract

4 before award of the contract.

5 (c) ESTABLISHMENT OF DEFINITIONS, EXCLUSIONS, LIMITATIONS, AND

6 QUALIFICATIONS.—The provisions of the Federal Acquisition Regulation

7 implementing this chapter may establish appropriate definitions, exclusions,

8 limitations, and qualifications. A submission by a contractor of costs that

9 are incurred by the contractor and that are claimed to be allowable under

10 Department of Energy management and operating contracts shall be consid11 ered a proposal for settlement of indirect costs incurred by the contractor

12 for any period after those costs have been accrued.

13 § 4305. Required regulations

14 (a) IN GENERAL.—The Federal Acquisition Regulation shall contain pro15 visions on the allowability of contractor costs. Those provisions shall define

16 in detail and in specific terms the costs that are unallowable, in whole or

17 in part, under covered contracts.

18 (b) SPECIFIC ITEMS.—The regulations shall, at a minimum, clarify the

19 cost principles applicable to contractor costs of the following:

20 (1) Air shows.

21 (2) Membership in civic, community, and professional organizations.

22 (3) Recruitment.

23 (4) Employee morale and welfare.

24 (5) Actions to influence (directly or indirectly) executive branch ac25 tion on regulatory and contract matters (other than costs incurred in

26 regard to contract proposals pursuant to solicited or unsolicited bids).

27 (6) Community relations.

28 (7) Dining facilities.

29 (8) Professional and consulting services, including legal services.

30 (9) Compensation.

31 (10) Selling and marketing.

32 (11) Travel.

33 (12) Public relations.

34 (13) Hotel and meal expenses.

35 (14) Expense of corporate aircraft.

36 (15) Company-furnished automobiles.

37 (16) Advertising.

38 (17) Conventions.

39 (c) ADDITIONAL REQUIREMENTS.—

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1 (1) WHEN QUESTIONED COSTS MAY BE RESOLVED.—The Federal

2 Acquisition Regulation shall require that a contracting officer not re3 solve any questioned costs until the contracting officer has obtained—

4 (A) adequate documentation of those costs; and

5 (B) the opinion of the contract auditor on the allowability of

6 those costs.

7 (2) PRESENCE OF CONTRACT AUDITOR.—The Federal Acquisition

8 Regulation shall provide that, to the maximum extent practicable, a

9 contract auditor be present at any negotiation or meeting with the con10 tractor regarding a determination of the allowability of indirect costs

11 of the contractor.

12 (3) SETTLEMENT TO REFLECT AMOUNT OF INDIVIDUAL QUES13 TIONED COSTS.—The Federal Acquisition Regulation shall require that

14 all categories of costs designated in the report of a contract auditor as

15 questioned with respect to a proposal for settlement be resolved in a

16 manner so that the amount of the individual questioned costs that are

17 paid will be reflected in the settlement.

18 § 4306. Applicability of regulations to subcontractors

19 The regulations referred to in sections 4304 and 4305(a) and (b) of this

20 title shall require prime contractors of a covered contract, to the maximum

21 extent practicable, to apply the provisions of those regulations to all sub22 contractors of the covered contract.

23 § 4307. Contractor certification

24 (a) CONTENT AND FORM.—A proposal for settlement of indirect costs ap25 plicable to a covered contract shall include a certification by an official of

26 the contractor that, to the best of the certifying official’s knowledge and be27 lief, all indirect costs included in the proposal are allowable. The certifi28 cation shall be in a form prescribed in the Federal Acquisition Regulation.

29 (b) WAIVER.—An executive agency may, in an exceptional case, waive the

30 requirement for certification under subsection (a) in the case of a contract

31 if the agency—

32 (1) determines that it would be in the interest of the Federal Gov33 ernment to waive the certification; and

34 (2) states in writing the reasons for the determination and makes

35 the determination available to the public.

36 § 4308. Penalties for submission of cost known to be unal37 lowable

38 The submission to an executive agency of a proposal for settlement of

39 costs for any period after those costs have been accrued that includes a cost

40 that is expressly specified by statute or regulation as being unallowable,

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1 with the knowledge that the cost is unallowable, is subject to section 287

2 of title 18 and section 3729 of title 31.

3 § 4309. Burden of proof on contractor

4 In a proceeding before a board of contract appeals, the United States

5 Court of Federal Claims, or any other Federal court in which the reason6 ableness of indirect costs for which a contractor seeks reimbursement from

7 the Federal Government is in issue, the burden of proof is on the contractor

8 to establish that those costs are reasonable.

9 § 4310. Proceeding costs not allowable

10 (a) DEFINITIONS.—In this section:

11 (1) COSTS.—The term ‘‘costs’’, with respect to a proceeding, means

12 all costs incurred by a contractor, whether before or after the com13 mencement of the proceeding, including—

14 (A) administrative and clerical expenses;

15 (B) the cost of legal services, including legal services performed

16 by an employee of the contractor;

17 (C) the cost of the services of accountants and consultants re18 tained by the contractor; and

19 (D) the pay of directors, officers, and employees of the con20 tractor for time devoted by those directors, officers, and employees

21 to the proceeding.

22 (2) PENALTY.—The term ‘‘penalty’’ does not include restitution, re23 imbursement, or compensatory damages.

24 (3) PROCEEDING.—The term ‘‘proceeding’’ includes an investigation.

25 (b) IN GENERAL.—Except as otherwise provided in this section, costs in26 curred by a contractor in connection with a criminal, civil, or administrative

27 proceeding commenced by the Federal Government or a State are not allow28 able as reimbursable costs under a covered contract if the proceeding—

29 (1) relates to a violation of, or failure to comply with, a Federal or

30 State statute or regulation; and

31 (2) results in a disposition described in subsection (c).

32 (c) COVERED DISPOSITIONS.—A disposition referred to in subsection

33 (b)(2) is any of the following:

34 (1) In a criminal proceeding, a conviction (including a conviction

35 pursuant to a plea of nolo contendere) by reason of the violation or

36 failure referred to in subsection (b).

37 (2) In a civil or administrative proceeding involving an allegation of

38 fraud or similar misconduct, a determination of contractor liability on

39 the basis of the violation or failure referred to in subsection (b).

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1 (3) In any civil or administrative proceeding, the imposition of a

2 monetary penalty by reason of the violation or failure referred to in

3 subsection (b).

4 (4) A final decision to do any of the following, by reason of the viola5 tion or failure referred to in subsection (b):

6 (A) Debar or suspend the contractor.

7 (B) Rescind or void the contract.

8 (C) Terminate the contract for default.

9 (5) A disposition of the proceeding by consent or compromise if the

10 disposition could have resulted in a disposition described in paragraph

11 (1), (2), (3), or (4).

12 (d) COSTS ALLOWED BY SETTLEMENT AGREEMENT IN PROCEEDING

13 COMMENCED BY FEDERAL GOVERNMENT.—In the case of a proceeding re14 ferred to in subsection (b) that is commenced by the Federal Government

15 and is resolved by consent or compromise pursuant to an agreement entered

16 into by a contractor and the Federal Government, the costs incurred by the

17 contractor in connection with the proceeding that are otherwise not allow18 able as reimbursable costs under subsection (b) may be allowed to the extent

19 specifically provided in that agreement.

20 (e) COSTS SPECIFICALLY AUTHORIZED BY EXECUTIVE AGENCY IN PRO21 CEEDING COMMENCED BY STATE.—In the case of a proceeding referred to

22 in subsection (b) that is commenced by a State, the executive agency that

23 awarded the covered contract involved in the proceeding may allow the costs

24 incurred by the contractor in connection with the proceeding as reimburs25 able costs if the executive agency determines, in accordance with the Fed26 eral Acquisition Regulation, that the costs were incurred as a result of—

27 (1) a specific term or condition of the contract; or

28 (2) specific written instructions of the executive agency.

29 (f) OTHER ALLOWABLE COSTS.—

30 (1) IN GENERAL.—Except as provided in paragraph (3), costs in31 curred by a contractor in connection with a criminal, civil, or adminis32 trative proceeding commenced by the Federal Government or a State

33 in connection with a covered contract may be allowed as reimbursable

34 costs under the contract if the costs are not disallowable under sub35 section (b), but only to the extent provided in paragraph (2).

36 (2) AMOUNT OF ALLOWABLE COSTS.—

37 (A) MAXIMUM AMOUNT ALLOWED.—The amount of the costs al38 lowable under paragraph (1) in any case may not exceed the

39 amount equal to 80 percent of the amount of the costs incurred,

40 to the extent that the costs are determined to be otherwise allow41 able and allocable under the Federal Acquisition Regulation.

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1 (B) CONTENT OF REGULATIONS.—Regulations issued for the

2 purpose of subparagraph (A) shall provide for appropriate consid3 eration of the complexity of procurement litigation, generally ac4 cepted principles governing the award of legal fees in civil actions

5 involving the Federal Government as a party, and other factors as

6 may be appropriate.

7 (3) WHEN OTHERWISE ALLOWABLE COSTS ARE NOT ALLOWABLE.—

8 In the case of a proceeding referred to in paragraph (1), contractor

9 costs otherwise allowable as reimbursable costs under this subsection

10 are not allowable if—

11 (A) the proceeding involves the same contractor misconduct al12 leged as the basis of another criminal, civil, or administrative pro13 ceeding; and

14 (B) the costs of the other proceeding are not allowable under

15 subsection (b).

16 CHAPTER 45—CONTRACT FINANCING

Sec.

4501. Authority of executive agency.

4502. Payment.

4503. Security for advance payments.

4504. Conditions for progress payments.

4505. Payments for commercial items.

4506. Action in case of fraud.

17 § 4501. Authority of executive agency

18 An executive agency may—

19 (1) make advance, partial, progress or other payments under con20 tracts for property or services made by the agency; and

21 (2) insert in solicitations for procurement of property or services a

22 provision limiting to small business concerns advance or progress pay23 ments.

24 § 4502. Payment

25 (a) BASIS FOR PAYMENT.—When practicable, payments under section

26 4501 of this title shall be made on any of the following bases:

27 (1) Performance measured by objective, quantifiable methods such as

28 delivery of acceptable items, work measurement, or statistical process

29 controls.

30 (2) Accomplishment of events defined in the program management

31 plan.

32 (3) Other quantifiable measures of results.

33 (b) PAYMENT AMOUNT.—Payments made under section 4501 of this title

34 may not exceed the unpaid contract price.

35 § 4503. Security for advance payments

36 Advance payments under section 4501 of this title may be made only on

37 adequate security and a determination by the agency head that to do so

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1 would be in the public interest. The security may be in the form of a lien

2 in favor of the Federal Government on the property contracted for, on the

3 balance in an account in which the payments are deposited, and on such

4 of the property acquired for performance of the contract as the parties may

5 agree. This lien shall be paramount to all other liens and is effective imme6 diately upon the first advancement of funds without filing, notice, or any

7 other action by the Federal Government.

8 § 4504. Conditions for progress payments

9 (a) PAYMENT COMMENSURATE WITH WORK.—The executive agency shall

10 ensure that a payment for work in progress (including materials, labor, and

11 other items) under a contract of an executive agency that provides for those

12 payments is commensurate with the work accomplished that meets stand13 ards established under the contract. The contractor shall provide informa14 tion and evidence the executive agency determines is necessary to permit the

15 executive agency to carry out this subsection.

16 (b) LIMITATION.—The executive agency shall ensure that progress pay17 ments referred to in subsection (a) are not made for more than 80 percent

18 of the work accomplished under the contract as long as the executive agency

19 has not made the contractual terms, specifications, and price definite.

20 (c) APPLICATION.—This section applies to a contract in an amount great21 er than $25,000.

22 § 4505. Payments for commercial items

23 (a) TERMS AND CONDITIONS FOR PAYMENTS.—Payments under section

24 4501 of this title for commercial items may be made under terms and condi25 tions that the head of the executive agency determines are appropriate or

26 customary in the commercial marketplace and are in the best interests of

27 the Federal Government.

28 (b) SECURITY FOR PAYMENTS.—The head of the executive agency shall

29 obtain adequate security for the payments. If the security is in the form

30 of a lien in favor of the Federal Government, the lien is paramount to all

31 other liens and is effective immediately on the first payment, without filing,

32 notice, or other action by the Federal Government.

33 (c) LIMITATION ON ADVANCE PAYMENTS.—Advance payments made

34 under section 4501 of this title for commercial items may include payments,

35 in a total amount not more than 15 percent of the contract price, in ad36 vance of any performance of work under the contract.

37 (d) NONAPPLICATION OF CERTAIN CONDITIONS.—The conditions of sec38 tions 4503 and 4504 of this title need not be applied if they would be incon39 sistent, as determined by the head of the executive agency, with commercial

40 terms and conditions pursuant to this section.

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1 § 4506. Action in case of fraud

2 (a) DEFINITION.—In this section, the term ‘‘remedy coordination offi3 cial’’, with respect to an executive agency, means the individual or entity

4 in that executive agency who coordinates within that executive agency the

5 administration of criminal, civil, administrative, and contractual remedies

6 resulting from investigations of fraud or corruption related to procurement

7 activities.

8 (b) RECOMMENDATION TO REDUCE OR SUSPEND PAYMENTS.—In any

9 case in which the remedy coordination official of an executive agency finds

10 that there is substantial evidence that the request of a contractor for ad11 vance, partial, or progress payment under a contract awarded by that execu12 tive agency is based on fraud, the remedy coordination official shall rec13 ommend that the executive agency reduce or suspend further payments to

14 that contractor.

15 (c) REDUCTION OR SUSPENSION OF PAYMENTS.—The head of an execu16 tive agency receiving a recommendation under subsection (b) in the case of

17 a contractor’s request for payment under a contract shall determine whether

18 there is substantial evidence that the request is based on fraud. On making

19 an affirmative determination, the head of the executive agency may reduce

20 or suspend further payments to the contractor under the contract.

21 (d) EXTENT OF REDUCTION OR SUSPENSION.—The extent of any reduc22 tion or suspension of payments by an executive agency under subsection (c)

23 on the basis of fraud shall be reasonably commensurate with the anticipated

24 loss to the Federal Government resulting from the fraud.

25 (e) WRITTEN JUSTIFICATION.—A written justification for each decision

26 of the head of an executive agency whether to reduce or suspend payments

27 under subsection (c), and for each recommendation received by the executive

28 agency in connection with the decision, shall be prepared and be retained

29 in the files of the executive agency.

30 (f) NOTICE.—The head of each executive agency shall prescribe proce31 dures to ensure that, before the head of the executive agency decides to re32 duce or suspend payments in the case of a contractor under subsection (c),

33 the contractor is afforded notice of the proposed reduction or suspension

34 and an opportunity to submit matters to the executive agency in response

35 to the proposed reduction or suspension.

36 (g) REVIEW.—Not later than 180 days after the date on which the head

37 of an executive agency reduces or suspends payments to a contractor under

38 subsection (c), the remedy coordination official of the executive agency

39 shall—

40 (1) review the determination of fraud on which the reduction or sus41 pension is based; and

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1 (2) transmit a recommendation to the head of the executive agency

2 whether the suspension or reduction should continue.

3 (h) REPORT.—The head of each executive agency who receives rec4 ommendations made by the remedy coordination official of the executive

5 agency to reduce or suspend payments under subsection (c) during a fiscal

6 year shall prepare for that year a report that contains the recommendations,

7 the actions taken on the recommendations and the reasons for those actions,

8 and an assessment of the effects of those actions on the Federal Govern9 ment. The report shall be available to any Member of Congress on request.

10 (i) RESTRICTION ON DELEGATION.—The head of an executive agency

11 may not delegate responsibilities under this section to an individual in a po12 sition below level IV of the Executive Schedule.

13 CHAPTER 47—MISCELLANEOUS

Sec.

4701. Determinations and decisions.

4702. Prohibition on release of contractor proposals.

4703. Validation of proprietary data restrictions.

4704. Prohibition of contractors limiting subcontractor sales directly to Federal Government.

4705. Protection of contractor employees from reprisal for disclosure of certain information.

4706. Examination of facilities and records of contractor.

4707. Remission of liquidated damages.

4708. Payment of reimbursable indirect costs in cost-type research and development contracts

with educational institutions.

4709. Implementation of electronic commerce capability.

14 § 4701. Determinations and decisions

15 (a) INDIVIDUAL OR CLASS DETERMINATIONS AND DECISIONS AUTHOR16 IZED.—

17 (1) IN GENERAL.—Determinations and decisions required to be made

18 under this part by the head of an executive agency or provided in this

19 part or chapters 1 to 11 of title 40 to be made by the Administrator

20 of General Services or other agency head may be made for an indi21 vidual purchase or contract or, except for determinations or decisions

22 made under sections 3105, 3301 to 3305(e), and 3307, chapter 37, and

23 section 4702 of this title or to the extent expressly prohibited by an24 other law, for a class of purchases or contracts.

25 (2) DELEGATION.—Except as provided in section 3303(a)(7) of this

26 title, and except as provided in section 121(d)(1) and (2) of title 40

27 with respect to the Administrator of General Services, the agency head,

28 in the discretion and subject to the direction of the agency head, may

29 delegate powers provided by this part or chapters 1 to 11 of title 40,

30 including the making of determinations and decisions described in

31 paragraph (1), to other officers or officials of the agency.

32 (3) FINALITY.—The determinations and decisions are final.

33 (b) WRITTEN FINDINGS.—

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1 (1) BASIS FOR CERTAIN DETERMINATIONS.—Each determination or

2 decision under section 3901, 3905, 4503, or 4706(d)(2)(B) of this title

3 shall be based on a written finding by the individual making the deter4 mination or decision. A finding under section 4503 or 4706(d)(2)(B)

5 shall set out facts and circumstances that support the determination

6 or decision.

7 (2) FINALITY.—Each finding referred to in paragraph (1) is final.

8 (3) MAINTAINING COPIES OF FINDINGS.—The head of an executive

9 agency shall maintain for a period of not less than 6 years a copy of

10 each finding referred to in paragraph (1) that is made by an individual

11 in that executive agency. The period begins on the date of the deter12 mination or decision to which the finding relates.

13 § 4702. Prohibition on release of contractor proposals

14 (a) DEFINITION.—In this section, the term ‘‘proposal’’ means a proposal,

15 including a technical, management, or cost proposal, submitted by a con16 tractor in response to the requirements of a solicitation for a competitive

17 proposal.

18 (b) PROHIBITION.—A proposal in the possession or control of an execu19 tive agency may not be made available to any person under section 552 of

20 title 5.

21 (c) NONAPPLICATION.—Subsection (b) does not apply to a proposal that

22 is set forth or incorporated by reference in a contract entered into between

23 the agency and the contractor that submitted the proposal.

24 § 4703. Validation of proprietary data restrictions

25 (a) CONTRACT THAT PROVIDES FOR DELIVERY OF TECHNICAL DATA.—

26 A contract for property or services entered into by an executive agency that

27 provides for the delivery of technical data shall provide that—

28 (1) a contractor or subcontractor at any tier shall be prepared to

29 furnish to the contracting officer a written justification for any restric30 tion the contractor or subcontractor asserts on the right of the Federal

31 Government to use the data; and

32 (2) the contracting officer may review the validity of a restriction the

33 contractor or subcontractor asserts under the contract on the right of

34 the Federal Government to use technical data furnished to the Federal

35 Government under the contract if the contracting officer determines

36 that reasonable grounds exist to question the current validity of the as37 serted restriction and that the continued adherence to the asserted re38 striction by the Federal Government would make it impracticable to

39 procure the item competitively at a later time.

40 (b) CHALLENGE OF RESTRICTION.—If after a review the contracting offi41 cer determines that a challenge to the asserted restriction is warranted, the

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1 contracting officer shall provide written notice to the contractor or subcon2 tractor asserting the restriction. The notice shall state—

3 (1) the grounds for challenging the asserted restriction; and

4 (2) the requirement for a response within 60 days justifying the cur5 rent validity of the asserted restriction.

6 (c) ADDITIONAL TIME FOR RESPONSES.—If a contractor or subcontractor

7 asserting a restriction subject to this section submits to the contracting offi8 cer a written request showing the need for additional time to comply with

9 the requirement to justify the current validity of the asserted restriction, the

10 contracting officer shall provide appropriate additional time to adequately

11 permit the justification to be submitted.

12 (d) MULTIPLE CHALLENGES.—If a party asserting a restriction receives

13 notices of challenges to restrictions on technical data from more than one

14 contracting officer, and notifies each contracting officer of the existence of

15 more than one challenge, the contracting officer initiating the earliest chal16 lenge, after consultation with the party asserting the restriction and the

17 other contracting officers, shall formulate a schedule of responses to each

18 of the challenges that will afford the party asserting the restriction with an

19 equitable opportunity to respond to each challenge.

20 (e) DECISION ON VALIDITY OF ASSERTED RESTRICTION.—

21 (1) NO RESPONSE SUBMITTED.—The contracting officer shall issue

22 a decision pertaining to the validity of the asserted restriction if the

23 contractor or subcontractor does not submit a response under sub24 section (b).

25 (2) RESPONSE SUBMITTED.—Within 60 days of receipt of a justifica26 tion submitted in response to the notice provided pursuant to sub27 section (b), a contracting officer shall issue a decision or notify the

28 party asserting the restriction of the time within which a decision will

29 be issued.

30 (f) CLAIM DEEMED CLAIM WITHIN CHAPTER 69.—A claim pertaining to

31 the validity of the asserted restriction that is submitted in writing to a con32 tracting officer by a contractor or subcontractor at any tier is deemed to

33 be a claim within the meaning of chapter 69 of this title.

34 (g) FINAL DISPOSITION OF CHALLENGE.—

35 (1) CHALLENGE IS SUSTAINED.—If the contracting officer’s chal36 lenge to the restriction on the right of the Federal Government to use

37 technical data is sustained on final disposition—

38 (A) the restriction is cancelled; and

39 (B) if the asserted restriction is found not to be substantially

40 justified, the contractor or subcontractor, as appropriate, is liable

41 to the Federal Government for payment of the cost to the Federal

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1 Government of reviewing the asserted restriction and the fees and

2 other expenses (as defined in section 2412(d)(2)(A) of title 28) in3 curred by the Federal Government in challenging the asserted re4 striction, unless special circumstances would make the payment

5 unjust.

6 (2) CHALLENGE NOT SUSTAINED.—If the contracting officer’s chal7 lenge to the restriction on the right of the Federal Government to use

8 technical data is not sustained on final disposition, the Federal

9 Government—

10 (A) continues to be bound by the restriction; and

11 (B) is liable for payment to the party asserting the restriction

12 for fees and other expenses (as defined in section 2412(d)(2)(A)

13 of title 28) incurred by the party asserting the restriction in de14 fending the asserted restriction if the challenge by the Federal

15 Government is found not to be made in good faith.

16 § 4704. Prohibition of contractors limiting subcontractor

17 sales directly to Federal Government

18 (a) CONTRACT RESTRICTIONS.—Each contract for the purchase of prop19 erty or services made by an executive agency shall provide that the con20 tractor will not—

21 (1) enter into an agreement with a subcontractor under the contract

22 that has the effect of unreasonably restricting sales by the subcon23 tractor directly to the Federal Government of any item or process (in24 cluding computer software) made or furnished by the subcontractor

25 under the contract (or any follow-on production contract); or

26 (2) otherwise act to restrict unreasonably the ability of a subcon27 tractor to make sales described in paragraph (1) to the Federal Gov28 ernment.

29 (b) RIGHTS UNDER LAW PRESERVED.—This section does not prohibit a

30 contractor from asserting rights it otherwise has under law.

31 (c) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not

32 apply to a contract for an amount that is not greater than the simplified

33 acquisition threshold.

34 (d) INAPPLICABILITY WHEN GOVERNMENT TREATED SIMILARLY TO

35 OTHER PURCHASERS.—An agreement between the contractor in a contract

36 for the acquisition of commercial items and a subcontractor under the con37 tract that restricts sales by the subcontractor directly to persons other than

38 the contractor may not be considered to unreasonably restrict sales by that

39 subcontractor to the Federal Government in violation of the provision in40 cluded in the contract pursuant to subsection (a) if the agreement does not

41 result in the Federal Government being treated differently with regard to

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1 the restriction than any other prospective purchaser of the commercial items

2 from that subcontractor.

3 § 4705. Protection of contractor employees from reprisal for

4 disclosure of certain information

5 (a) DEFINITIONS.—In this section:

6 (1) CONTRACT.—The term ‘‘contract’’ means a contract awarded by

7 the head of an executive agency.

8 (2) CONTRACTOR.—The term ‘‘contractor’’ means a person awarded

9 a contract with an executive agency.

10 (3) INSPECTOR GENERAL.—The term ‘‘Inspector General’’ means an

11 Inspector General appointed under the Inspector General Act of 1978

12 (5 App. U.S.C.).

13 (b) PROHIBITION OF REPRISALS.—An employee of a contractor may not

14 be discharged, demoted, or otherwise discriminated against as a reprisal for

15 disclosing to a Member of Congress or an authorized official of an executive

16 agency or the Department of Justice information relating to a substantial

17 violation of law related to a contract (including the competition for, or nego18 tiation of, a contract).

19 (c) INVESTIGATION OF COMPLAINTS.—An individual who believes that the

20 individual has been subjected to a reprisal prohibited by subsection (b) may

21 submit a complaint to the Inspector General of the executive agency. Unless

22 the Inspector General determines that the complaint is frivolous, the Inspec23 tor General shall investigate the complaint and, on completion of the inves24 tigation, submit a report of the findings of the investigation to the indi25 vidual, the contractor concerned, and the head of the agency. If the execu26 tive agency does not have an Inspector General, the duties of the Inspector

27 General under this section shall be performed by an official designated by

28 the head of the executive agency.

29 (d) REMEDY AND ENFORCEMENT AUTHORITY.—

30 (1) ACTIONS CONTRACTOR MAY BE ORDERED TO TAKE.—If the head

31 of an executive agency determines that a contractor has subjected an

32 individual to a reprisal prohibited by subsection (b), the head of the

33 executive agency may take one or more of the following actions:

34 (A) ABATEMENT.—Order the contractor to take affirmative ac35 tion to abate the reprisal.

36 (B) REINSTATEMENT.—Order the contractor to reinstate the in37 dividual to the position that the individual held before the reprisal,

38 together with the compensation (including back pay), employment

39 benefits, and other terms and conditions of employment that

40 would apply to the individual in that position if the reprisal had

41 not been taken.

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1 (C) PAYMENT.—Order the contractor to pay the complainant an

2 amount equal to the aggregate amount of all costs and expenses

3 (including attorneys’ fees and expert witnesses’ fees) that the com4 plainant reasonably incurred for, or in connection with, bringing

5 the complaint regarding the reprisal, as determined by the head

6 of the executive agency.

7 (2) ENFORCEMENT ORDER.—When a contractor fails to comply with

8 an order issued under paragraph (1), the head of the executive agency

9 shall file an action for enforcement of the order in the United States

10 district court for a district in which the reprisal was found to have oc11 curred. In an action brought under this paragraph, the court may

12 grant appropriate relief, including injunctive relief and compensatory

13 and exemplary damages.

14 (3) REVIEW OF ENFORCEMENT ORDER.—A person adversely affected

15 or aggrieved by an order issued under paragraph (1) may obtain review

16 of the order’s conformance with this subsection, and regulations issued

17 to carry out this section, in the United States court of appeals for a

18 circuit in which the reprisal is alleged in the order to have occurred.

19 A petition seeking review must be filed no more than 60 days after the

20 head of the agency issues the order. Review shall conform to chapter

21 7 of title 5.

22 (e) SCOPE OF SECTION.—This section does not—

23 (1) authorize the discharge of, demotion of, or discrimination against

24 an employee for a disclosure other than a disclosure protected by sub25 section (b); or

26 (2) modify or derogate from a right or remedy otherwise available

27 to the employee.

28 § 4706. Examination of facilities and records of contractor

29 (a) DEFINITION.—In this section, the term ‘‘records’’ includes books, doc30 uments, accounting procedures and practices, and other data, regardless of

31 type and regardless of whether the items are in written form, in the form

32 of computer data, or in any other form.

33 (b) AGENCY AUTHORITY.—

34 (1) INSPECTION OF PLANT AND AUDIT OF RECORDS.—The head of

35 an executive agency, acting through an authorized representative, may

36 inspect the plant and audit the records of—

37 (A) a contractor performing a cost-reimbursement, incentive,

38 time-and-materials, labor-hour, or price-redeterminable contract,

39 or any combination of those contracts, the executive agency makes

40 under this part; and

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1 (B) a subcontractor performing a cost-reimbursement, incentive,

2 time-and-materials, labor-hour, or price-redeterminable sub3 contract, or any combination of those subcontracts, under a con4 tract referred to in subparagraph (A).

5 (2) EXAMINATION OF RECORDS.—The head of an executive agency,

6 acting through an authorized representative, may, for the purpose of

7 evaluating the accuracy, completeness, and currency of certified cost or

8 pricing data required to be submitted pursuant to chapter 35 of this

9 title with respect to a contract or subcontract, examine all records of

10 the contractor or subcontractor related to—

11 (A) the proposal for the contract or subcontract;

12 (B) the discussions conducted on the proposal;

13 (C) pricing of the contract or subcontract; or

14 (D) performance of the contract or subcontract.

15 (c) SUBPOENA POWER.—

16 (1) AUTHORITY TO REQUIRE THE PRODUCTION OF RECORDS.—The

17 Inspector General of an executive agency appointed under section 3 or

18 8G of the Inspector General Act of 1978 (5 App. U.S.C.) or, on re19 quest of the head of an executive agency, the Director of the Defense

20 Contract Audit Agency (or any successor agency) of the Department

21 of Defense or the Inspector General of the General Services Adminis22 tration may require by subpoena the production of records of a con23 tractor, access to which is provided for that executive agency by sub24 section (b).

25 (2) ENFORCEMENT OF SUBPOENA.—A subpoena under paragraph

26 (1), in the case of contumacy or refusal to obey, is enforceable by order

27 of an appropriate United States district court.

28 (3) AUTHORITY NOT DELEGABLE.—The authority provided by para29 graph (1) may not be delegated.

30 (4) REPORT.—In the year following a year in which authority pro31 vided in paragraph (1) is exercised for an executive agency, the head

32 of the executive agency shall submit to the Committee on Homeland

33 Security and Governmental Affairs of the Senate and the Committee

34 on Government Reform of the House of Representatives a report on

35 the exercise of the authority during the preceding year and the reasons

36 why the authority was exercised in any instance.

37 (d) AUTHORITY OF COMPTROLLER GENERAL.—

38 (1) IN GENERAL.—Except as provided in paragraph (2), each con39 tract awarded after using procedures other than sealed bid procedures

40 shall provide that the Comptroller General and representatives of the

41 Comptroller General may examine records of the contractor, or any of

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1 its subcontractors, that directly pertain to, and involve transactions re2 lating to, the contract or subcontract.

3 (2) EXCEPTION FOR FOREIGN CONTRACTOR OR SUBCONTRACTOR.—

4 Paragraph (1) does not apply to a contract or subcontract with a for5 eign contractor or foreign subcontractor if the executive agency con6 cerned determines, with the concurrence of the Comptroller General or

7 the designee of the Comptroller General, that applying paragraph (1)

8 to the contract or subcontract would not be in the public interest. The

9 concurrence of the Comptroller General or the designee is not required

10 when—

11 (A) the contractor or subcontractor is—

12 (i) the government of a foreign country or an agency of

13 that government; or

14 (ii) precluded by the laws of the country involved from

15 making its records available for examination; and

16 (B) the executive agency determines, after taking into account

17 the price and availability of the property and services from United

18 States sources, that the public interest would be best served by not

19 applying paragraph (1).

20 (3) ADDITIONAL RECORDS NOT REQUIRED.—Paragraph (1) does not

21 require a contractor or subcontractor to create or maintain a record

22 that the contractor or subcontractor does not maintain in the ordinary

23 course of business or pursuant to another law.

24 (e) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.—An execu25 tive agency may not perform an audit of indirect costs under a contract,

26 subcontract, or modification before or after entering into the contract, sub27 contract, or modification when the contracting officer determines that the

28 objectives of the audit can reasonably be met by accepting the results of

29 an audit that was conducted by another department or agency of the Fed30 eral Government within one year preceding the date of the contracting offi31 cer’s determination.

32 (f) EXPIRATION OF AUTHORITY.—The authority of an executive agency

33 under subsection (b) and the authority of the Comptroller General under

34 subsection (d) shall expire 3 years after final payment under the contract

35 or subcontract.

36 (g) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not

37 apply to the following contracts:

38 (1) Contracts for utility services at rates not exceeding those estab39 lished to apply uniformly to the public, plus any applicable reasonable

40 connection charge.

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1 (2) A contract or subcontract that is not greater than the simplified

2 acquisition threshold.

3 (h) ELECTRONIC FORM ALLOWED.—This section does not preclude a con4 tractor from duplicating or storing original records in electronic form.

5 (i) ORIGINAL RECORDS NOT REQUIRED.—An executive agency shall not

6 require a contractor or subcontractor to provide original records in an audit

7 carried out pursuant to this section if the contractor or subcontractor pro8 vides photographic or electronic images of the original records and meets

9 the following requirements:

10 (1) PRESERVATION PROCEDURES ESTABLISHED.—The contractor or

11 subcontractor has established procedures to ensure that the imaging

12 process preserves the integrity, reliability, and security of the original

13 records.

14 (2) INDEXING SYSTEM MAINTAINED.—The contractor or subcon15 tractor maintains an effective indexing system to permit timely and

16 convenient access to the imaged records.

17 (3) ORIGINAL RECORDS RETAINED.—The contractor or subcon18 tractor retains the original records for a minimum of one year after

19 imaging to permit periodic validation of the imaging systems.

20 § 4707. Remission of liquidated damages

21 When a contract made on behalf of the Federal Government by the head

22 of a Federal agency, or by an authorized officer of the agency, includes a

23 provision for liquidated damages for delay, the Secretary of the Treasury

24 on recommendation of the head of the agency may remit any part of the

25 damages as the Secretary of the Treasury believes is just and equitable.

26 § 4708. Payment of reimbursable indirect costs in cost-type

27 research and development contracts with edu28 cational institutions

29 A cost-type research and development contract (including a grant) with

30 a university, college, or other educational institution may provide for pay31 ment of reimbursable indirect costs on the basis of predetermined fixed-per32 centage rates applied to the total of the reimbursable direct costs incurred

33 or to an element of the total of the reimbursable direct costs incurred.

34 § 4709. Implementation of electronic commerce capability

35 (a) ROLE OF HEAD OF EXECUTIVE AGENCY.—The head of each execu36 tive agency shall implement the electronic commerce capability required by

37 section 2301 of this title. In implementing the capability, the head of an

38 executive agency shall consult with the Administrator.

39 (b) PROGRAM MANAGER.—The head of each executive agency shall des40 ignate a program manager to implement the electronic commerce capability

41 for the agency. The program manager reports directly to an official at a

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1 level not lower than the senior procurement executive designated for the

2 agency under section 1702(c) of this title.

3 Subtitle II—Other Advertising and Contract

4 Provisions

Chapter Sec.

61. Advertising .................................................................................................. 6101

63. General Contract Provisions ................................................................ 6301

65. Contracts for Materials, Supplies, Articles, and Equipment

Exceeding $10,000.

6501

67. Service Contract Labor Standards .................................................... 6701

69. Contract Disputes ..................................................................................... 6901

5 CHAPTER 61—ADVERTISING

Sec.

6101. Advertising requirement for Federal Government purchases and sales.

6102. Exceptions from advertising requirement.

6103. Opening of bids.

6 § 6101. Advertising requirement for Federal Government

7 purchases and sales

8 (a) DEFINITIONS.—In this section—

9 (1) APPROPRIATION.—The term ‘‘appropriation’’ includes amounts

10 made available by legislation under section 9104 of title 31.

11 (2) FEDERAL GOVERNMENT.—The term ‘‘Federal Government’’ in12 cludes the government of the District of Columbia.

13 (b) PURCHASES.—

14 (1) IN GENERAL.—Unless otherwise provided in the appropriation

15 concerned or other law, purchases and contracts for supplies or services

16 for the Federal Government may be made or entered into only after

17 advertising a sufficient time previously for proposals.

18 (2) LIMITATIONS ON APPLICABILITY.—Paragraph (1) does not apply

19 when—

20 (A) the amount involved in any one case does not exceed

21 $25,000;

22 (B) public exigencies require the immediate delivery of articles

23 or performance of services;

24 (C) only one source of supply is available and the Federal Gov25 ernment purchasing or contracting officer so certifies; or

26 (D) services are required to be performed by a contractor in

27 person and are—

28 (i) of a technical and professional nature; or

29 (ii) under Federal Government supervision and paid for on

30 a time basis.

31 (c) SALES.—Except when otherwise authorized by law or when the rea32 sonable value involved in any one case does not exceed $500, sales and con33 tracts of sale by the Federal Government are governed by the requirements

34 of this section for advertising.

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1 (d) APPLICATION TO WHOLLY OWNED GOVERNMENT CORPORATIONS.—

2 For wholly owned Government corporations, this section applies only to ad3 ministrative transactions.

4 § 6102. Exceptions from advertising requirement

5 (a) AMERICAN BATTLE MONUMENTS COMMISSION.—Section 6101 of this

6 title does not apply to the American Battle Monuments Commission with

7 respect to leases in foreign countries for office or garage space.

8 (b) BUREAU OF INTERPARLIAMENTARY UNION FOR PROMOTION OF

9 INTERNATIONAL ARBITRATION.—Section 6101 of this title does not apply

10 to the Bureau of Interparliamentary Union for Promotion of International

11 Arbitration with respect to necessary stenographic reporting services by con12 tract.

13 (c) DEPARTMENT OF STATE.—Section 6101 of this title does not apply

14 to the Department of State when the purchase or service relates to the

15 packing of personal and household effects of Diplomatic, Consular, and For16 eign Service officers and clerks for foreign shipment.

17 (d) INTERNATIONAL COMMITTEE OF AERIAL LEGAL EXPERTS.—Section

18 6101 of this title does not apply to the International Committee of Aerial

19 Legal Experts with respect to necessary stenographic and other services by

20 contract.

21 (e) ARCHITECT OF THE CAPITOL.—The purchase of supplies and equip22 ment and the procurement of services for all branches under the Architect

23 of the Capitol may be made in the open market according to common busi24 ness practice, without compliance with section 6101 of this title, when the

25 aggregate amount of the purchase or the service does not exceed $25,000

26 in any instance.

27 (f) FOREST PRODUCTS FROM INDIAN RESERVATIONS.—Lumber and

28 other forest products produced by Indian enterprises from forests on Indian

29 reservations may be sold under regulations the Secretary of the Interior pre30 scribes, without compliance with section 6101 of this title.

31 (g) HOUSE OF REPRESENTATIVES.—Section 6101 of this title does not

32 apply to purchases and contracts for supplies or services for any office of

33 the House of Representatives.

34 (h) CONGRESSIONAL BUDGET OFFICE.—The Director of the Congres35 sional Budget Office may enter into agreements or contracts without regard

36 to section 6101 of this title.

37 § 6103. Opening of bids

38 Whenever proposals for supplies have been solicited, the parties respond39 ing to the solicitation shall be notified of the time and place of the opening

40 of the bids, and be permitted to be present either in person or by attorney.

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1 A record of each bid shall be made at the time and place of the opening

2 of the bids.

3 CHAPTER 63—GENERAL CONTRACT PROVISIONS

Sec.

6301. Authorization requirement.

6302. Contracts for fuel made by Secretary of the Army.

6303. Certain contracts limited to appropriated amounts.

6304. Certain contracts limited to one-year term.

6305. Prohibition on transfer of contract and certain allowable assignments.

6306. Prohibition on Members of Congress making contracts with Federal Government.

6307. Contracts with Federal Government-owned establishments and availability of appropriations.

6308. Contracts for transportation of Federal Government securities.

6309. Honorable discharge certificate in lieu of birth certificate.

4 § 6301. Authorization requirement

5 (a) IN GENERAL.—A contract or purchase on behalf of the Federal Gov6 ernment shall not be made unless the contract or purchase is authorized by

7 law or is under an appropriation adequate to its fulfillment.

8 (b) EXCEPTION.—

9 (1) DEFINITION.—In this subsection, the term ‘‘defined Secretary’’

10 means—

11 (A) the Secretary of Defense; or

12 (B) the Secretary of the Department in which the Coast Guard

13 is operating when the Coast Guard is not operating as a service

14 in the Navy.

15 (2) IN GENERAL.—Subsection (a) does not apply to a contract or

16 purchase made by a defined Secretary for clothing, subsistence, forage,

17 fuel, quarters, transportation, or medical and hospital supplies.

18 (3) CURRENT YEAR LIMITATION.—A contract or purchase made by

19 a defined Secretary under this subsection may not exceed the neces20 sities of the current year.

21 (4) REPORTS.—The defined Secretary shall immediately advise Con22 gress when authority is exercised under this subsection. The defined

23 Secretary shall report quarterly on the estimated obligations incurred

24 pursuant to the authority granted in this subsection.

25 (c) SPECIAL RULE FOR PURCHASE OF LAND.—Land may not be pur26 chased by the Federal Government unless the purchase is authorized by law.

27 § 6302. Contracts for fuel made by Secretary of the Army

28 The Secretary of the Army, when the Secretary believes it is in the inter29 est of the United States, may enter into contracts and incur obligations for

30 fuel in sufficient quantities to meet the requirements for one year without

31 regard to the current fiscal year. Amounts appropriated for the fiscal year

32 in which the contract is made or amounts appropriated or which may be

33 appropriated for the following fiscal year may be used to pay for supplies

34 delivered under a contract made pursuant to this section.

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1 § 6303. Certain contracts limited to appropriated amounts

2 A contract to erect, repair, or furnish a public building, or to make any

3 public improvement, shall not be made on terms requiring the Federal Gov4 ernment to pay more than the amount specifically appropriated for the ac5 tivity covered by the contract.

6 § 6304. Certain contracts limited to one-year term

7 Except as otherwise provided, an executive department shall not make a

8 contract for stationery or other supplies for a term longer than one year

9 from the time the contract is made.

10 § 6305. Prohibition on transfer of contract and certain al11 lowable assignments

12 (a) GENERAL PROHIBITION ON TRANSFER OF CONTRACTS.—The party

13 to whom the Federal Government gives a contract or order may not transfer

14 the contract or order, or any interest in the contract or order, to another

15 party. A purported transfer in violation of this subsection annuls the con16 tract or order so far as the Federal Government is concerned, except that

17 all rights of action for breach of contract are reserved to the Federal Gov18 ernment.

19 (b) ASSIGNMENT.—

20 (1) IN GENERAL.—Notwithstanding subsection (a) and in accordance

21 with the requirements of this subsection, amounts due from the Fed22 eral Government under a contract may be assigned to a bank, trust

23 company, Federal lending agency, or other financing institution.

24 (2) MINIMUM AMOUNT.—This subsection applies only to a contract

25 under which the aggregate amounts due from the Federal Government

26 total at least $1,000.

27 (3) ACCORD WITH CONTRACT TERMS.—Assignment may not be made

28 under this subsection if the contract forbids the assignment.

29 (4) FULL BALANCE DUE.—Unless otherwise expressly permitted by

30 the contract, an assignment under this subsection must cover the bal31 ance of all amounts due from the Federal Government under the con32 tract.

33 (5) SINGLE ASSIGNMENT.—Unless otherwise expressly permitted by

34 the contract, an assignment under this subsection may not be made to

35 more than one party or be subject to further assignment, except that

36 assignment may be made to one party as agent or trustee for 2 or

37 more parties participating in the financing.

38 (6) WRITTEN NOTICE.—The assignee of an assignment under this

39 subsection shall file written notice of the assignment and a true copy

40 of the instrument of assignment with—

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1 (A) the contracting officer or head of the officer’s department

2 or agency;

3 (B) the surety on any bond connected with the contract; and

4 (C) the disbursing officer, if any, designated in the contract to

5 make payment.

6 (7) VALIDITY.—Notwithstanding any law to the contrary governing

7 the validity of assignments, an assignment under this subsection is a

8 valid assignment for all purposes.

9 (8) NO REFUND TO COVER ASSIGNOR’S LIABILITY.—The assignee of

10 an assignment under this subsection is not liable to make any refund

11 to the Federal Government because of an assignor’s liability to the

12 Federal Government, whether that liability arises from the contract or

13 independently.

14 (9) AVOIDING REDUCTION OR SETOFF WITH CERTAIN CONTRACTS.—

15 (A) CONTRACT PROVISION.—A contract of the Department of

16 Defense, the General Services Administration, the Department of

17 Energy, or another department or agency of the Federal Govern18 ment designated by the President may, on a determination of need

19 by the President, provide or be amended without consideration to

20 provide that payments made to an assignee under the contract are

21 not subject to reduction or setoff. Each determination of need by

22 the President under this subparagraph shall be published in the

23 Federal Register.

24 (B) CARRYING OUT CONTRACT PROVISION.—When a ‘‘no reduc25 tion or setoff’’ provision as described in subparagraph (A) is in26 cluded in a contract, payments to the assignee are not subject to

27 reduction or setoff for an assignor’s liability arising—

28 (i) independently of the contract;

29 (ii) on account of renegotiation under a renegotiation stat30 ute or under a statutory renegotiation article in the contract;

31 (iii) on account of fines;

32 (iv) on account of penalties; or

33 (v) on account of taxes, social security contributions, or the

34 withholding or non-withholding of taxes or social security con35 tributions, whether arising from or independently of the con36 tract.

37 (C) LIMITATION.—Subparagraph (B)(iv) does not apply to

38 amounts which may be collected or withheld from the assignor in

39 accordance with or for failure to comply with the terms of the con40 tract.

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1 § 6306. Prohibition on Members of Congress making con2 tracts with Federal Government

3 (a) IN GENERAL.—A Member of Congress may not enter into or benefit

4 from a contract or agreement or any part of a contract or agreement with

5 the Federal Government.

6 (b) EXEMPTIONS.—

7 (1) IN GENERAL.—Subsection (a) does not apply to contracts that

8 the Secretary of Agriculture may enter into with farmers.

9 (2) CERTAIN ACTS.—Subsection (a) does not apply to a contract en10 tered into under—

11 (A) the Agricultural Adjustment Act (7 U.S.C. 601 et seq.);

12 (B) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); or

13 (C) the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.).

14 (3) PUBLIC RECORD.—An exemption under this subsection shall be

15 made a matter of public record.

16 § 6307. Contracts with Federal Government-owned estab17 lishments and availability of appropriations

18 An order or contract placed with a Federal Government-owned establish19 ment for work, material, or the manufacture of material pertaining to an

20 approved project is deemed to be an obligation in the same manner that

21 a similar order or contract placed with a commercial manufacturer or pri22 vate contractor is an obligation. Appropriations remain available to pay an

23 obligation to a Federal Government-owned establishment just as appropria24 tions remain available to pay an obligation to a commercial manufacturer

25 or private contractor.

26 § 6308. Contracts for transportation of Federal Government

27 securities

28 When practicable, a contract for transporting bullion, cash, or securities

29 of the Federal Government shall be awarded to the lowest responsible bidder

30 after notice to all parties with means of transportation.

31 § 6309. Honorable discharge certificate in lieu of birth cer32 tificate

33 (a) IN GENERAL.—An employer described in subsection (b) may not deny

34 employment, on account of failure to produce a birth certificate, to an indi35 vidual who submits, in lieu of the birth certificate, an honorable discharge

36 certificate (or certificate issued in lieu of an honorable discharge certificate)

37 from the Army, Air Force, Navy, Marine Corps, or Coast Guard of the

38 United States, unless the honorable discharge certificate shows on its face

39 that the individual may have been an alien at the time of its issuance.

40 (b) EMPLOYERS TO WHICH SECTION APPLIES.—An employer referred to

41 in subsection (a) is an employer—

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1 (1) engaged in—

2 (A) the production, maintenance, or storage of arms, armament,

3 ammunition, implements of war, munitions, machinery, tools,

4 clothing, food, fuel, or any articles or supplies, or parts or ingredi5 ents of any articles or supplies; or

6 (B) the construction, reconstruction, repair, or installation of a

7 building, plant, structure, or facility; and

8 (2) engaged in the activity described in paragraph (1) under—

9 (A) a contract with the Federal Government; or

10 (B) any contract that the President, the Secretary of the Army,

11 the Secretary of the Air Force, the Secretary of the Navy, or the

12 Secretary of the Department in which the Coast Guard is oper13 ating certifies to the employer to be necessary to the national de14 fense.

15 CHAPTER 65—CONTRACTS FOR MATERIALS, SUPPLIES,

16 ARTICLES, AND EQUIPMENT EXCEEDING $10,000

Sec.

6501. Definitions.

6502. Required contract terms.

6503. Breach or violation of required contract terms.

6504. Three-year prohibition on new contracts in case of breach or violation.

6505. Exclusions.

6506. Administrative provisions.

6507. Hearing authority and procedures.

6508. Authority to make exceptions.

6509. Other procedures.

6510. Manufacturers and regular dealers.

6511. Effect on other law.

17 § 6501. Definitions

18 In this chapter—

19 (1) AGENCY OF THE UNITED STATES.—The term ‘‘agency of the

20 United States’’ means an executive department, independent establish21 ment, or other agency or instrumentality of the United States, the Dis22 trict of Columbia, or a corporation in which all stock is beneficially

23 owned by the Federal Government.

24 (2) PERSON.—The term ‘‘person’’ includes one or more individuals,

25 partnerships, associations, corporations, legal representatives, trustees,

26 trustees in cases under title 11, or receivers.

27 (3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of

28 Labor.

29 § 6502. Required contract terms

30 A contract made by an agency of the United States for the manufacture

31 or furnishing of materials, supplies, articles, or equipment, in an amount

32 exceeding $10,000, shall include the following representations and stipula33 tions:

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1 (1) MINIMUM WAGES TO BE PAID.—All individuals employed by the

2 contractor in the manufacture or furnishing of materials, supplies, arti3 cles, or equipment under the contract will be paid, without subsequent

4 deduction or rebate on any account, not less than the prevailing min5 imum wages, as determined by the Secretary, for individuals employed

6 in similar work or in the particular or similar industries or groups of

7 industries currently operating in the locality in which the materials,

8 supplies, articles, or equipment are to be manufactured or furnished

9 under the contract, except that this paragraph applies only to pur10 chases or contracts relating to industries that have been the subject

11 matter of a determination by the Secretary.

12 (2) MAXIMUM NUMBER OF HOURS TO BE WORKED IN A WEEK.—No

13 individual employed by the contractor in the manufacture or furnishing

14 of materials, supplies, articles, or equipment under the contract shall

15 be permitted to work in excess of 40 hours in any one week, except

16 that this paragraph does not apply to an employer who has entered

17 into an agreement with employees pursuant to paragraph (1) or (2) of

18 section 7(b) of the Fair Labor Standards Act of 1938 (29 U.S.C.

19 207(b)(1) or (2)).

20 (3) INELIGIBLE EMPLOYEES.—No individual under 16 years of age

21 and no incarcerated individual will be employed by the contractor in

22 the manufacture or furnishing of materials, supplies, articles, or equip23 ment under the contract, except that this section, or other law or exec24 utive order containing similar prohibitions against the purchase of

25 goods by the Federal Government, does not apply to convict labor that

26 satisfies the conditions of section 1761(c) of title 18.

27 (4) STANDARDS OF PLACES AND WORKING CONDITIONS WHERE CON28 TRACT PERFORMED.—No part of the contract will be performed, and

29 no materials, supplies, articles, or equipment will be manufactured or

30 fabricated under the contract, in plants, factories, buildings, or sur31 roundings, or under working conditions, that are unsanitary, haz32 ardous, or dangerous to the health and safety of employees engaged in

33 the performance of the contract. Compliance with the safety, sanitary,

34 and factory inspection laws of the State in which the work or part of

35 the work is to be performed is prima facie evidence of compliance with

36 this paragraph.

37 § 6503. Breach or violation of required contract terms

38 (a) APPLICABLE BREACH OR VIOLATION.—This section applies in case of

39 breach or violation of a representation or stipulation included in a contract

40 under section 6502 of this title.

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1 (b) LIQUIDATED DAMAGES.—In addition to damages for any other breach

2 of the contract, the party responsible for a breach or violation described in

3 subsection (a) is liable to the Federal Government for the following liq4 uidated damages:

5 (1) An amount equal to the sum of $10 per day for each individual

6 under 16 years of age and each incarcerated individual knowingly em7 ployed in the performance of the contract.

8 (2) An amount equal to the sum of each underpayment of wages due

9 an employee engaged in the performance of the contract, including any

10 underpayments arising from deductions, rebates, or refunds.

11 (c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition to the

12 Federal Government being entitled to damages described in subsection (b),

13 the agency of the United States that made the contract may cancel the con14 tract and make open-market purchases or make other contracts for the com15 pletion of the original contract, charging any additional cost to the original

16 contractor.

17 (d) RECOVERY OF AMOUNTS DUE.—An amount due the Federal Govern18 ment because of a breach or violation described in subsection (a) may be

19 withheld from any amounts owed the contractor under any contract under

20 section 6502 of this title or may be recovered in a suit brought by the At21 torney General.

22 (e) EMPLOYEE REIMBURSEMENT FOR UNDERPAYMENT OF WAGES.—An

23 amount withheld or recovered under subsection (d) that is based on an un24 derpayment of wages as described in subsection (b)(2) shall be held in a

25 special deposit account. On order of the Secretary, the amount shall be paid

26 directly to the underpaid employee on whose account the amount was with27 held or recovered. However, an employee’s claim for payment under this

28 subsection may be entertained only if made within one year from the date

29 of actual notice to the contractor of the withholding or recovery.

30 § 6504. Three-year prohibition on new contracts in case of

31 breach or violation

32 (a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to

33 each agency of the United States a list containing the names of persons

34 found by the Secretary to have breached or violated a representation or stip35 ulation included in a contract under section 6502 of this title.

36 (b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends oth37 erwise, a contract described in section 6502 of this title may not be awarded

38 to a person named on the list under subsection (a), or to a firm, corpora39 tion, partnership, or association in which the person has a controlling inter40 est, until 3 years have elapsed from the date of the determination by the

41 Secretary that a breach or violation occurred.

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1 § 6505. Exclusions

2 (a) ITEMS AVAILABLE IN THE OPEN MARKET.—This chapter does not

3 apply to the purchase of materials, supplies, articles, or equipment that may

4 usually be bought in the open market.

5 (b) PERISHABLES AND AGRICULTURAL PRODUCTS.—This chapter does

6 not apply to any of the following:

7 (1) Perishables, including dairy, livestock and nursery products.

8 (2) Agricultural or farm products processed for first sale by the

9 original producers.

10 (3) Contracts made by the Secretary of Agriculture for the purchase

11 of agricultural commodities or products of agricultural commodities.

12 (c) CARRIAGE OF FREIGHT OR PERSONNEL.—This chapter may not be

13 construed to apply to—

14 (1) the carriage of freight or personnel by vessel, airplane, bus,

15 truck, express, or railway line where published tariff rates are in effect;

16 or

17 (2) common carriers subject to the Communications Act of 1934 (47

18 U.S.C. 151 et seq.).

19 § 6506. Administrative provisions

20 (a) IN GENERAL.—The Secretary shall administer this chapter.

21 (b) REGULATIONS.—The Secretary may make, amend, and rescind regu22 lations as necessary to carry out this chapter.

23 (c) USE OF GOVERNMENT OFFICERS AND EMPLOYEES.—The Secretary

24 shall use Federal officers and employees and, with a State’s consent, State

25 and local officers and employees as the Secretary finds necessary to assist

26 in the administration of this chapter.

27 (d) APPOINTMENTS.—The Secretary shall appoint an administrative offi28 cer and attorneys, experts, and other employees from time to time as the

29 Secretary finds necessary for the administration of this chapter. The ap30 pointments are subject to chapter 51 and subchapter III of chapter 53 of

31 title 5 and other law applicable to the employment and compensation of offi32 cers and employees of the Federal Government.

33 (e) INVESTIGATIONS.—The Secretary, or an authorized representative of

34 the Secretary, may make investigations and findings as provided in this

35 chapter and may, in any part of the United States, prosecute an inquiry

36 necessary to carry out this chapter.

37 § 6507. Hearing authority and procedures

38 (a) RECORD AND HEARING REQUIREMENTS FOR WAGE DETERMINA39 TIONS.—A wage determination under section 6502(1) of this title shall be

40 made on the record after opportunity for a hearing.

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1 (b) AUTHORITY TO HOLD HEARINGS.—The Secretary or an impartial

2 representative designated by the Secretary may hold hearings when there is

3 a complaint of breach or violation of a representation or stipulation included

4 in a contract under section 6502 of this title. The Secretary may initiate

5 hearings on the Secretary’s own motion or on the application of a person

6 affected by the ruling of an agency of the United States relating to a pro7 posal or contract under this chapter.

8 (c) ORDERS TO COMPEL TESTIMONY.—The Secretary or an impartial

9 representative designated by the Secretary may issue orders requiring wit10 nesses to attend hearings held under this section and to produce evidence

11 and testify under oath. Witnesses shall be paid fees and mileage at the same

12 rates as witnesses in courts of the United States.

13 (d) ENFORCEMENT OF ORDERS.—If a person refuses or fails to obey an

14 order issued under subsection (c), the Secretary or an impartial representa15 tive designated by the Secretary may bring an action to enforce the order

16 in a district court of the United States or in the district court of a territory

17 or possession of the United States. A court has jurisdiction to enforce the

18 order if the inquiry is being carried out within the court’s judicial district

19 or if the person is found or resides or transacts business within the court’s

20 judicial district. The court may issue an order requiring the person to obey

21 the order issued under subsection (c), and the court may punish any further

22 refusal or failure as contempt of court.

23 (e) FINDINGS OF FACT.—After notice and a hearing, the Secretary or an

24 impartial representative designated by the Secretary shall make findings of

25 fact. The findings are conclusive for agencies of the United States. If sup26 ported by a preponderance of the evidence, the findings are conclusive in

27 any court of the United States.

28 (f) DECISIONS.—The Secretary or an impartial representative designated

29 by the Secretary may make decisions, based on findings of fact, that are

30 considered necessary to enforce this chapter.

31 § 6508. Authority to make exceptions

32 (a) DUTY OF THE SECRETARY TO MAKE EXCEPTIONS.—When the head

33 of an agency of the United States makes a written finding that the inclusion

34 of representations or stipulations under section 6502 of this title in a pro35 posal or contract will seriously impair the conduct of Federal Government

36 business, the Secretary shall make exceptions, in specific cases or otherwise,

37 when justice or the public interest will be served.

38 (b) AUTHORITY OF THE SECRETARY TO MODIFY EXISTING CON39 TRACTS.—When an agency of the United States and a contractor jointly

40 recommend, the Secretary may modify the terms of an existing contract

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1 retary finds necessary and proper in the public interest or to prevent injus2 tice and undue hardship.

3 (c) AUTHORITY OF THE SECRETARY TO ALLOW LIMITATIONS, VARI4 ATIONS, TOLERANCES, AND EXEMPTIONS.—The Secretary may provide rea5 sonable limitations and may prescribe regulations to allow reasonable vari6 ations, tolerances, and exemptions in the application of this chapter to con7 tractors, including with respect to minimum wages and maximum hours of

8 labor.

9 (d) RATE OF PAY FOR OVERTIME.—When the Secretary permits an in10 crease in the maximum hours of labor stipulated in a contract, the Sec11 retary shall set a rate of pay for overtime. The overtime rate must be at

12 least one and one-half times the basic hourly rate.

13 (e) AUTHORITY OF THE PRESIDENT TO SUSPEND.—The President may

14 suspend any of the representations and stipulations contained in section

15 6502 of this title whenever, in the President’s judgment, suspension is in

16 the public interest.

17 § 6509. Other procedures

18 (a) APPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS.—Not19 withstanding section 553 of title 5, subchapter II of chapter 5 and chapter

20 7 of title 5 are applicable in the administration of sections 6501 to 6507

21 and 6511 of this title.

22 (b) JUDICIAL REVIEW IN GENERAL.—Notwithstanding the inclusion of

23 representations and stipulations in a contract under section 6502 of this

24 title, an interested person has the right of judicial review of any legal ques25 tion which might otherwise be raised, including wage determinations and the

26 interpretation of the terms ‘‘locality’’ and ‘‘open market’’.

27 (c) JUDICIAL REVIEW OF WAGE DETERMINATIONS.—A person adversely

28 affected or aggrieved by a wage determination under section 6502(1) of this

29 title has the right of judicial review of the determination, or of the applica30 bility of the determination, within 90 days after the determination is made,

31 in the manner provided by chapter 7 of title 5. A person adversely affected

32 or aggrieved by a wage determination is deemed to include a person in an

33 industry to which the determination applies that is a supplier of materials,

34 supplies, articles, or equipment that are purchased or intended to be pur35 chased by the Federal Government from any source.

36 § 6510. Manufacturers and regular dealers

37 (a) PRESCRIBING STANDARDS.—The Secretary may prescribe, in regula38 tions, standards for determining whether a contractor is a manufacturer or

39 regular dealer with respect to materials, supplies, articles, or equipment to

40 be manufactured or furnished under, or used in the performance of, a con41 tract entered into by an agency of the United States.

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1 (b) JUDICIAL REVIEW.—An interested person has the right of judicial re2 view of any legal question relating to interpretation of the terms ‘‘regular

3 dealer’’ and ‘‘manufacturer’’ as defined pursuant to subsection (a).

4 § 6511. Effect on other law

5 This chapter may not be construed to modify or amend the following pro6 visions:

7 (1) Chapter 83 of this title.

8 (2) Sections 3141 to 3144, 3146, and 3147 of title 40.

9 (3) Chapter 307 of title 18.

10 CHAPTER 67—SERVICE CONTRACT LABOR STANDARDS

Sec.

6701. Definitions.

6702. Contracts to which this chapter applies.

6703. Required contract terms.

6704. Limitation on minimum wage.

6705. Violations.

6706. Three-year prohibition on new contracts in case of violation.

6707. Enforcement and administration of chapter.

11 § 6701. Definitions

12 In this chapter:

13 (1) COMPENSATION.—The term ‘‘compensation’’ means any of the

14 payments or fringe benefits described in section 6703 of this title.

15 (2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of

16 Labor.

17 (3) SERVICE EMPLOYEE.—The term ‘‘service employee’’—

18 (A) means an individual engaged in the performance of a con19 tract made by the Federal Government and not exempted under

20 section 6702(b) of this title, whether negotiated or advertised, the

21 principal purpose of which is to furnish services in the United

22 States;

23 (B) includes an individual without regard to any contractual re24 lationship alleged to exist between the individual and a contractor

25 or subcontractor; but

26 (C) does not include an individual employed in a bona fide exec27 utive, administrative, or professional capacity, as those terms are

28 defined in part 541 of title 29, Code of Federal Regulations.

29 (4) UNITED STATES.—The term ‘‘United States’’—

30 (A) includes any State of the United States, the District of Co31 lumbia, Puerto Rico, the Virgin Islands, the outer Continental

32 Shelf as defined in the Outer Continental Shelf Lands Act (43

33 U.S.C. § 1331 et seq.), American Samoa, Guam, Wake Island, and

34 Johnston Island; but

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1 (B) does not include any other territory under the jurisdiction

2 of the United States or any United States base or possession with3 in a foreign country.

4 § 6702. Contracts to which this chapter applies

5 (a) IN GENERAL.—Except as provided in subsection (b), this chapter ap6 plies to any contract or bid specification for a contract, whether negotiated

7 or advertised, that—

8 (1) is made by the Federal Government or the District of Columbia;

9 (2) involves an amount exceeding $2,500; and

10 (3) has as its principal purpose the furnishing of services in the

11 United States through the use of service employees.

12 (b) EXEMPTIONS.—This chapter does not apply to—

13 (1) a contract of the Federal Government or the District of Colum14 bia for the construction, alteration, or repair, including painting and

15 decorating, of public buildings or public works;

16 (2) any work required to be done in accordance with chapter 65 of

17 this title;

18 (3) a contract for the carriage of freight or personnel by vessel, air19 plane, bus, truck, express, railway line or oil or gas pipeline where pub20 lished tariff rates are in effect;

21 (4) a contract for the furnishing of services by radio, telephone, tele22 graph, or cable companies, subject to the Communications Act of 1934

23 (47 U.S.C. 151 et seq.);

24 (5) a contract for public utility services, including electric light and

25 power, water, steam, and gas;

26 (6) an employment contract providing for direct services to a Federal

27 agency by an individual; and

28 (7) a contract with the United States Postal Service, the principal

29 purpose of which is the operation of postal contract stations.

30 § 6703. Required contract terms

31 A contract, and bid specification for a contract, to which this chapter ap32 plies under section 6702 of this title shall contain the following terms:

33 (1) MINIMUM WAGE.—The contract and bid specification shall con34 tain a provision specifying the minimum wage to be paid to each class

35 of service employee engaged in the performance of the contract or any

36 subcontract, as determined by the Secretary or the Secretary’s author37 ized representative, in accordance with prevailing rates in the locality,

38 or, where a collective-bargaining agreement covers the service employ39 ees, in accordance with the rates provided for in the agreement, includ40 ing prospective wage increases provided for in the agreement as a re41 sult of arm’s length negotiations. In any case the minimum wage may

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1 not be less than the minimum wage specified in section 6704 of this

2 title.

3 (2) FRINGE BENEFITS.—The contract and bid specification shall

4 contain a provision specifying the fringe benefits to be provided to each

5 class of service employee engaged in the performance of the contract

6 or any subcontract, as determined by the Secretary or the Secretary’s

7 authorized representative to be prevailing in the locality, or, where a

8 collective-bargaining agreement covers the service employees, to be pro9 vided for under the agreement, including prospective fringe benefit in10 creases provided for in the agreement as a result of arm’s-length nego11 tiations. The fringe benefits shall include medical or hospital care, pen12 sions on retirement or death, compensation for injuries or illness result13 ing from occupational activity, or insurance to provide any of the fore14 going, unemployment benefits, life insurance, disability and sickness in15 surance, accident insurance, vacation and holiday pay, costs of appren16 ticeship or other similar programs and other bona fide fringe benefits

17 not otherwise required by Federal, State, or local law to be provided

18 by the contractor or subcontractor. The obligation under this para19 graph may be discharged by furnishing any equivalent combinations of

20 fringe benefits or by making equivalent or differential payments in cash

21 under regulations established by the Secretary.

22 (3) WORKING CONDITIONS.—The contract and bid specification shall

23 contain a provision specifying that no part of the services covered by

24 this chapter may be performed in buildings or surroundings or under

25 working conditions, provided by or under the control or supervision of

26 the contractor or any subcontractor, which are unsanitary or hazardous

27 or dangerous to the health or safety of service employees engaged to

28 provide the services.

29 (4) NOTICE.—The contract and bid specification shall contain a pro30 vision specifying that on the date a service employee begins work on

31 a contract to which this chapter applies, the contractor or subcon32 tractor will deliver to the employee a notice of the compensation re33 quired under paragraphs (1) and (2), on a form prepared by the Fed34 eral agency, or will post a notice of the required compensation in a

35 prominent place at the worksite.

36 (5) GENERAL SCHEDULE PAY RATES AND PREVAILING RATE SYS37 TEMS.—The contract and bid specification shall contain a statement of

38 the rates that would be paid by the Federal agency to each class of

39 service employee if section 5332 or 5341 of title 5 were applicable to

40 them. The Secretary shall give due consideration to these rates in mak41 ing the wage and fringe benefit determinations specified in this section.

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1 § 6704. Limitation on minimum wage

2 (a) IN GENERAL.—A contractor that makes a contract with the Federal

3 Government, the principal purpose of which is to furnish services through

4 the use of service employees, and any subcontractor, may not pay less than

5 the minimum wage specified under section 6(a)(1) of the Fair Labor Stand6 ards Act of 1938 (29 U.S.C. 206(a)(1)) to an employee engaged in per7 forming work on the contract.

8 (b) VIOLATIONS.—Sections 6705 to 6707(d) of this title are applicable to

9 a violation of this section.

10 § 6705. Violations

11 (a) LIABILITY OF RESPONSIBLE PARTY.—A party responsible for a viola12 tion of a contract provision required under section 6703(1) or (2) of this

13 title or a violation of section 6704 of this title is liable for an amount equal

14 to the sum of any deduction, rebate, refund, or underpayment of compensa15 tion due any employee engaged in the performance of the contract.

16 (b) RECOVERY OF AMOUNTS UNDERPAID TO EMPLOYEES.—

17 (1) WITHHOLDING ACCRUED PAYMENTS DUE ON CONTRACTS.—The

18 total amount determined under subsection (a) to be due any employee

19 engaged in the performance of a contract may be withheld from ac20 crued payments due on the contract or on any other contract between

21 the same contractor and the Federal Government. The amount with22 held shall be held in a deposit fund. On order of the Secretary, the

23 compensation found by the Secretary or the head of a Federal agency

24 to be due an underpaid employee pursuant to this chapter shall be paid

25 from the deposit fund directly to the underpaid employee.

26 (2) BRINGING ACTIONS AGAINST CONTRACTORS.—If the accrued pay27 ments withheld under the terms of the contract are insufficient to reim28 burse a service employee with respect to whom there has been a failure

29 to pay the compensation required pursuant to this chapter, the Federal

30 Government may bring action against the contractor, subcontractor, or

31 any sureties in any court of competent jurisdiction to recover the re32 maining amount of underpayment. Any amount recovered shall be held

33 in the deposit fund and shall be paid, on order of the Secretary, di34 rectly to the underpaid employee. Any amount not paid to an employee

35 because of inability to do so within 3 years shall be covered into the

36 Treasury as miscellaneous receipts.

37 (c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition to

38 other actions in accordance with this section, when a violation of any con39 tract stipulation is found, the Federal agency that made the contract may

40 cancel the contract on written notice to the original contractor. The Federal

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1 pletion of the original contract, charging any additional cost to the original

2 contractor.

3 (d) ENFORCEMENT OF SECTION.—In accordance with regulations pre4 scribed pursuant to section 6707(a)–(d) of this title, the Secretary or the

5 head of a Federal agency may carry out this section.

6 § 6706. Three-year prohibition on new contracts in case of

7 violation

8 (a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to

9 each agency of the Federal Government a list containing the names of per10 sons or firms that a Federal agency or the Secretary has found to have vio11 lated this chapter.

12 (b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends oth13 erwise because of unusual circumstances, a Federal Government contract

14 may not be awarded to a person or firm named on the list under subsection

15 (a), or to an entity in which the person or firm has a substantial interest,

16 until 3 years have elapsed from the date of publication of the list. If the

17 Secretary does not recommend otherwise because of unusual circumstances,

18 the Secretary shall, not later than 90 days after a hearing examiner has

19 made a finding of a violation of this chapter, forward to the Comptroller

20 General the name of the person or firm found to have violated this chapter.

21 § 6707. Enforcement and administration of chapter

22 (a) ENFORCEMENT OF CHAPTER.—Sections 6506 and 6507 of this title

23 govern the Secretary’s authority to enforce this chapter, including the Sec24 retary’s authority to prescribe regulations, issue orders, hold hearings, make

25 decisions based on findings of fact, and take other appropriate action under

26 this chapter.

27 (b) LIMITATIONS AND REGULATIONS FOR VARIATIONS, TOLERANCES,

28 AND EXEMPTIONS.—The Secretary may provide reasonable limitations and

29 may prescribe regulations allowing reasonable variation, tolerances, and ex30 emptions with respect to this chapter (other than subsection (f)), but only

31 in special circumstances where the Secretary determines that the limitation,

32 variation, tolerance, or exemption is necessary and proper in the public in33 terest or to avoid the serious impairment of Federal Government business,

34 and is in accord with the remedial purpose of this chapter to protect pre35 vailing labor standards.

36 (c) PRESERVATION OF WAGES AND BENEFITS DUE UNDER PREDE37 CESSOR CONTRACTS.—

38 (1) IN GENERAL.—Under a contract which succeeds a contract sub39 ject to this chapter, and under which substantially the same services

40 are furnished, a contractor or subcontractor may not pay a service em41 ployee less than the wages and fringe benefits the service employee

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1 would have received under the predecessor contract, including accrued

2 wages and fringe benefits and any prospective increases in wages and

3 fringe benefits provided for in a collective-bargaining agreement as a

4 result of arm’s-length negotiations.

5 (2) EXCEPTION.—This subsection does not apply if the Secretary

6 finds after a hearing in accordance with regulations adopted by the

7 Secretary that wages and fringe benefits under the predecessor con8 tract are substantially at variance with wages and fringe benefits pre9 vailing in the same locality for services of a similar character.

10 (d) DURATION OF CONTRACTS.—Subject to limitations in annual appro11 priation acts but notwithstanding any other law, a contract to which this

12 chapter applies may, if authorized by the Secretary, be for any term of

13 years not exceeding 5, if the contract provides for periodic adjustment of

14 wages and fringe benefits pursuant to future determinations, issued in the

15 manner prescribed in section 6703 of this title at least once every 2 years

16 during the term of the contract, covering each class of service employee.

17 (e) EXCLUSION OF FRINGE BENEFIT PAYMENTS IN DETERMINING OVER18 TIME PAY.—In determining any overtime pay to which a service employee

19 is entitled under Federal law, the regular or basic hourly rate of pay of the

20 service employee does not include any fringe benefit payments computed

21 under this chapter which are excluded from the definition of ‘‘regular rate’’

22 under section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C.

23 207(e)).

24 (f) TIMELINESS OF WAGE AND FRINGE BENEFIT DETERMINATIONS.—It

25 is the intent of Congress that determinations of minimum wages and fringe

26 benefits under section 6703(1) and (2) of this title should be made as soon

27 as administratively feasible for all contracts subject to this chapter. In any

28 event, the Secretary shall at least make the determinations for contracts

29 under which more than 5 service employees are to be employed.

30 CHAPTER 69—CONTRACT DISPUTES

Sec.

6901. Definitions.

6902. Applicability of chapter.

6903. Decision by contracting officer.

6904. Contractor’s right of appeal from decision by contracting officer.

6905. Agency boards.

6906. Agency board procedures for accelerated and small claims.

6907. Judicial review of agency board decisions.

6908. Payment of claims.

6909. Interest.

31 § 6901. Definitions

32 In this chapter:

33 (1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Admin34 istrator for Federal Procurement Policy appointed pursuant to section

35 1102 of this title.

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1 (2) AGENCY BOARD.—The term ‘‘agency board’’ means an agency

2 board of contract appeals established under section 6905 of this title.

3 (3) AGENCY HEAD.—The term ‘‘agency head’’ means the head and

4 any assistant head of an executive agency. The term may include the

5 chief official of a principal division of an executive agency if the head

6 of the executive agency so designates that chief official.

7 (4) CONTRACTING OFFICER.—The term ‘‘contracting officer’’—

8 (A) means an individual who, by appointment in accordance

9 with applicable regulations, has the authority to make and admin10 ister contracts and to make determinations and findings with re11 spect to contracts; and

12 (B) includes an authorized representative of the contracting of13 ficer, acting within the limits of the representative’s authority.

14 (5) CONTRACTOR.—The term ‘‘contractor’’ means a party to a Fed15 eral Government contract other than the Federal Government.

16 (6) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ means—

17 (A) an executive department as defined in section 101 of title

18 5;

19 (B) a military department as defined in section 102 of title 5;

20 (C) an independent establishment as defined in section 104 of

21 title 5, except that the term does not include the Government Ac22 countability Office;

23 (D) a wholly owned Government corporation as defined in sec24 tion 9101(3) of title 31;

25 (E) the United States Postal Service; and

26 (F) the Postal Rate Commission.

27 (7) MISREPRESENTATION OF FACT.—The term ‘‘misrepresentation

28 of fact’’ means a false statement of substantive fact, or conduct that

29 leads to a belief of a substantive fact material to proper understanding

30 of the matter in hand, made with intent to deceive or mislead.

31 § 6902. Applicability of chapter

32 (a) EXECUTIVE AGENCY CONTRACTS.—Unless otherwise specifically pro33 vided in this chapter, this chapter applies to any express or implied contract

34 (including those of the nonappropriated fund activities described in sections

35 1346 and 1491 of title 28) made by an executive agency for—

36 (1) the procurement of property, other than real property in being;

37 (2) the procurement of services;

38 (3) the procurement of construction, alteration, repair, or mainte39 nance of real property; or

40 (4) the disposal of personal property.

41 (b) TENNESSEE VALLEY AUTHORITY CONTRACTS.—

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1 (1) IN GENERAL.—With respect to contracts of the Tennessee Valley

2 Authority, this chapter applies only to contracts containing a clause

3 that requires contract disputes to be resolved through an agency ad4 ministrative process.

5 (2) EXCLUSION.—Notwithstanding any other provision of this chap6 ter, this chapter does not apply to a contract of the Tennessee Valley

7 Authority for the sale of fertilizer or electric power or related to the

8 conduct or operation of the electric power system.

9 (c) FOREIGN GOVERNMENT OR INTERNATIONAL ORGANIZATION CON10 TRACTS.—If an agency head determines that applying this chapter would

11 not be in the public interest, this chapter does not apply to a contract with

12 a foreign government, an agency of a foreign government, an international

13 organization, or a subsidiary body of an international organization.

14 (d) MARITIME CONTRACTS.—Appeals under section 6907(a) of this title

15 and actions brought under sections 6904(b) and 6907(b)–(f) of this title,

16 arising out of maritime contracts, are governed by the Act of March 9, 1920

17 (known as the Suits in Admiralty Act) (46 App. U.S.C. 741 et seq.), or the

18 Act of March 3, 1925 (known as the Public Vessels Act) (46 App. U.S.C.

19 781 et seq.), as applicable, to the extent that those Acts are not inconsistent

20 with this chapter.

21 § 6903. Decision by contracting officer

22 (a) CLAIMS GENERALLY.—

23 (1) SUBMISSION OF CONTRACTOR’S CLAIMS TO CONTRACTING OFFI24 CER.—Each claim by a contractor against the Federal Government re25 lating to a contract shall be submitted to the contracting officer for a

26 decision.

27 (2) CONTRACTOR’S CLAIMS IN WRITING.—Each claim by a contractor

28 against the Federal Government relating to a contract shall be in writ29 ing.

30 (3) CONTRACTING OFFICER TO DECIDE FEDERAL GOVERNMENT’S

31 CLAIMS.—Each claim by the Federal Government against a contractor

32 relating to a contract shall be the subject of a decision by the con33 tracting officer.

34 (4) TIME FOR SUBMITTING CLAIMS.—

35 (A) IN GENERAL.—Each claim by a contractor against the Fed36 eral Government relating to a contract and each claim by the Fed37 eral Government against a contractor relating to a contract shall

38 be submitted within 6 years after the accrual of the claim.

39 (B) EXCEPTION.—This paragraph does not apply to a claim by

40 the Federal Government against a contractor that is based on a

41 claim by the contractor involving fraud.

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1 (5) APPLICABILITY.—The authority of this subsection and sub2 sections (c)(1), (d), and (e) does not extend to a claim or dispute for

3 penalties or forfeitures prescribed by statute or regulation that another

4 Federal agency is specifically authorized to administer, settle, or deter5 mine.

6 (b) CERTIFICATION OF CLAIMS.—

7 (1) REQUIREMENT GENERALLY.—For claims of more than $100,000

8 made by a contractor, the contractor shall certify that—

9 (A) the claim is made in good faith;

10 (B) the supporting data are accurate and complete to the best

11 of the contractor’s knowledge and belief;

12 (C) the amount requested accurately reflects the contract ad13 justment for which the contractor believes the Federal Government

14 is liable; and

15 (D) the certifier is authorized to certify the claim on behalf of

16 the contractor.

17 (2) WHO MAY EXECUTE CERTIFICATION.—The certification required

18 by paragraph (1) may be executed by an individual authorized to bind

19 the contractor with respect to the claim.

20 (3) FAILURE TO CERTIFY OR DEFECTIVE CERTIFICATION.—A con21 tracting officer is not obligated to render a final decision on a claim

22 of more than $100,000 that is not certified in accordance with para23 graph (1) if, within 60 days after receipt of the claim, the contracting

24 officer notifies the contractor in writing of the reasons why any at25 tempted certification was found to be defective. A defect in the certifi26 cation of a claim does not deprive a court or an agency board of juris27 diction over the claim. Prior to the entry of a final judgment by a court

28 or a decision by an agency board, the court or agency board shall re29 quire a defective certification to be corrected.

30 (c) FRAUDULENT CLAIMS.—

31 (1) NO AUTHORITY TO SETTLE.—This section does not authorize an

32 agency head to settle, compromise, pay, or otherwise adjust any claim

33 involving fraud.

34 (2) LIABILITY OF CONTRACTOR.—If a contractor is unable to sup35 port any part of the contractor’s claim and it is determined that the

36 inability is attributable to a misrepresentation of fact or fraud by the

37 contractor, then the contractor is liable to the Federal Government for

38 an amount equal to the unsupported part of the claim plus all of the

39 Federal Government’s costs attributable to reviewing the unsupported

40 part of the claim. Liability under this paragraph shall be determined

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1 within 6 years of the commission of the misrepresentation of fact or

2 fraud.

3 (d) ISSUANCE OF DECISION.—The contracting officer shall issue a deci4 sion in writing and shall mail or otherwise furnish a copy of the decision

5 to the contractor.

6 (e) CONTENTS OF DECISION.—The contracting officer’s decision shall

7 state the reasons for the decision reached and shall inform the contractor

8 of the contractor’s rights as provided in this chapter. Specific findings of

9 fact are not required. If made, specific findings of fact are not binding in

10 any subsequent proceeding.

11 (f) TIME FOR ISSUANCE OF DECISION.—

12 (1) CLAIM OF $100,000 OR LESS.—A contracting officer shall issue a

13 decision on any submitted claim of $100,000 or less within 60 days

14 from the contracting officer’s receipt of a written request from the con15 tractor that a decision be rendered within that period.

16 (2) CLAIM OF MORE THAN $100,000.—A contracting officer shall,

17 within 60 days of receipt of a submitted certified claim over

18 $100,000—

19 (A) issue a decision; or

20 (B) notify the contractor of the time within which a decision will

21 be issued.

22 (3) GENERAL REQUIREMENT OF REASONABLENESS.—The decision of

23 a contracting officer on submitted claims shall be issued within a rea24 sonable time, in accordance with regulations prescribed by the agency,

25 taking into account such factors as the size and complexity of the claim

26 and the adequacy of information in support of the claim provided by

27 the contractor.

28 (4) REQUESTING TRIBUNAL TO DIRECT ISSUANCE WITHIN SPECIFIED

29 TIME PERIOD.—A contractor may request the tribunal concerned to di30 rect a contracting officer to issue a decision in a specified period of

31 time, as determined by the tribunal concerned, in the event of undue

32 delay on the part of the contracting officer.

33 (5) FAILURE TO ISSUE DECISION WITHIN REQUIRED TIME PERIOD.—

34 Failure by a contracting officer to issue a decision on a claim within

35 the required time period is deemed to be a decision by the contracting

36 officer denying the claim and authorizes an appeal or action on the

37 claim as otherwise provided in this chapter. However, the tribunal con38 cerned may, at its option, stay the proceedings of the appeal or action

39 to obtain a decision by the contracting officer.

40 (g) FINALITY OF DECISION UNLESS APPEALED.—The contracting offi41 cer’s decision on a claim is final and conclusive and is not subject to review

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1 by any forum, tribunal, or Federal Government agency, unless an appeal or

2 action is timely commenced as authorized by this chapter. This chapter does

3 not prohibit an executive agency from including a clause in a Federal Gov4 ernment contract requiring that, pending final decision of an appeal, action,

5 or final settlement, a contractor shall proceed diligently with performance

6 of the contract in accordance with the contracting officer’s decision.

7 (h) ALTERNATIVE MEANS OF DISPUTE RESOLUTION.—

8 (1) IN GENERAL.—Notwithstanding any other provision of this chap9 ter, a contractor and a contracting officer may use any alternative

10 means of dispute resolution under subchapter IV of chapter 5 of title

11 5, or other mutually agreeable procedures, for resolving claims. All pro12 visions of subchapter IV of chapter 5 of title 5 apply to alternative

13 means of dispute resolution under this subsection.

14 (2) CERTIFICATION OF CLAIM.—The contractor shall certify the

15 claim when required to do so under subsection (b)(1) or other law.

16 (3) REJECTING REQUEST FOR ALTERNATIVE DISPUTE RESOLU17 TION.—

18 (A) CONTRACTING OFFICER.—A contracting officer who rejects

19 a contractor’s request for alternative dispute resolution pro20 ceedings shall provide the contractor with a written explanation,

21 citing one or more of the conditions in section 572(b) of title 5

22 or other specific reasons that alternative dispute resolution proce23 dures are inappropriate.

24 (B) CONTRACTOR.—A contractor that rejects an agency’s re25 quest for alternative dispute resolution proceedings shall inform

26 the agency in writing of the contractor’s specific reasons for re27 jecting the request.

28 § 6904. Contractor’s right of appeal from decision by con29 tracting officer

30 (a) APPEAL TO AGENCY BOARD.—A contractor, within 90 days from the

31 date of receipt of a contracting officer’s decision under section 6903 of this

32 title, may appeal the decision to an agency board as provided in section

33 6905 of this title.

34 (b) BRINGING AN ACTION DE NOVO IN FEDERAL COURT.—

35 (1) IN GENERAL.—Except as provided in paragraph (2), and in lieu

36 of appealing the decision of a contracting officer under section 6903

37 of this title to an agency board, a contractor may bring an action di38 rectly on the claim in the United States Court of Federal Claims, not39 withstanding any contract provision, regulation, or rule of law to the

40 contrary.

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1 (2) TENNESSEE VALLEY AUTHORITY.—In the case of an action

2 against the Tennessee Valley Authority, the contractor may only bring

3 an action directly on the claim in a district court of the United States

4 pursuant to section 1337 of title 28, notwithstanding any contract pro5 vision, regulation, or rule of law to the contrary.

6 (3) TIME FOR FILING.—A contractor shall file any action under

7 paragraph (1) or (2) within 12 months from the date of receipt of a

8 contracting officer’s decision under section 6903 of this title.

9 (4) DE NOVO.—An action under paragraph (1) or (2) shall proceed

10 de novo in accordance with the rules of the appropriate court.

11 § 6905. Agency boards

12 (a) ESTABLISHMENT.—

13 (1) IN GENERAL.—Except as provided in paragraph (2), an agency

14 board of contract appeals may be established within an executive agen15 cy when the agency head, after consultation with the Administrator, de16 termines from a workload study that the volume of contract claims jus17 tifies the establishment of a full-time agency board of at least 3 mem18 bers who shall have no other inconsistent duties. Workload studies will

19 be updated at least once every 3 years and submitted to the Adminis20 trator.

21 (2) TENNESSEE VALLEY AUTHORITY.—The Board of Directors of

22 the Tennessee Valley Authority may establish an agency board of con23 tract appeals for the Authority of an indeterminate number of mem24 bers.

25 (3) GUIDELINES.—The Administrator, pursuant to the authority

26 conferred under part B of subtitle I of this title and as necessary or

27 desirable to carry out this chapter, shall issue guidelines with respect

28 to the establishment, functions, and procedures of agency boards, ex29 cept for the agency board established by the Tennessee Valley Author30 ity.

31 (b) APPOINTMENT OF MEMBERS AND COMPENSATION.—

32 (1) IN GENERAL.—Except as provided in paragraph (2), members of

33 an agency board shall be selected and appointed in the same manner

34 as administrative law judges appointed pursuant to section 3105 of

35 title 5, with an additional requirement that members of an agency

36 board must have had at least 5 years of experience in public contract

37 law. A chairman and vice chairman of each agency board shall be des38 ignated by the agency head from among the appointed members. Com39 pensation for the chairman, vice chairman, and other members shall be

40 determined under section 5372a of title 5.

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1 (2) TENNESSEE VALLEY AUTHORITY.—The Board of Directors of

2 the Tennessee Valley Authority shall establish criteria for the appoint3 ment of members to the agency board established under subsection

4 (a)(2), and shall designate a chairman of the agency board. The chair5 man and other members of the agency board shall receive compensa6 tion, at the daily equivalent of the rates determined under section

7 5372a of title 5, for each day they are engaged in the actual perform8 ance of their duties as members of the agency board.

9 (c) INTER-AGENCY ARRANGEMENTS.—If the volume of contract claims is

10 not sufficient to justify an agency board under subsection (a), or if an agen11 cy head otherwise considers it appropriate, the agency head shall arrange

12 for appeals from decisions by contracting officers of the agency to be de13 cided by the agency board of another executive agency. If an agency head

14 is unable to make such an arrangement, the agency head shall submit any

15 appeals to the Administrator for placement with an agency board. This sub16 section does not apply to the Tennessee Valley Authority.

17 (d) JURISDICTION.—

18 (1) IN GENERAL.—Each agency board has jurisdiction to decide any

19 appeal from the decision of a contracting officer, relative to a contract

20 made by—

21 (A) the agency board’s own agency; or

22 (B) another agency, if the other agency or the Administrator

23 designates the agency board to decide the appeal pursuant to sub24 section (c).

25 (2) RELIEF.—In exercising this jurisdiction, an agency board may

26 grant any relief that would be available to a litigant asserting a con27 tract claim in the United States Court of Federal Claims.

28 (e) SUBPOENA, DISCOVERY, AND DEPOSITION.—A member of an agency

29 board may administer oaths to witnesses, authorize depositions and dis30 covery proceedings, and require by subpoena the attendance of witnesses,

31 and production of books and papers, for the taking of testimony or evidence

32 by deposition or in the hearing of an appeal by the agency board. In case

33 of contumacy or refusal to obey a subpoena by a person who resides, is

34 found, or transacts business within the jurisdiction of a United States dis35 trict court, the court, upon application of the agency board through the At36 torney General, or upon application by the agency board of the Tennessee

37 Valley Authority, shall have jurisdiction to issue the person an order requir38 ing the person to appear before the agency board or a member of the agency

39 board, to produce evidence or to give testimony, or both. Any failure of the

40 person to obey the order of the court may be punished by the court as con41 tempt of court.

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1 (f) DECISIONS.—An agency board shall—

2 (1) to the fullest extent practicable provide informal, expeditious, and

3 inexpensive resolution of disputes;

4 (2) issue a decision in writing or take other appropriate action on

5 each appeal submitted; and

6 (3) mail or otherwise furnish a copy of the decision to the contractor

7 and the contracting officer.

8 § 6906. Agency board procedures for accelerated and small

9 claims

10 (a) ACCELERATED PROCEDURE WHERE $100,000 OR LESS IN DIS11 PUTE.—The rules of each agency board shall include a procedure for the

12 accelerated disposition of any appeal from a decision of a contracting officer

13 where the amount in dispute is $100,000 or less. The accelerated procedure

14 is applicable at the sole election of the contractor. An appeal under the ac15 celerated procedure shall be resolved, whenever possible, within 180 days

16 from the date the contractor elects to use the procedure.

17 (b) SMALL CLAIMS PROCEDURE WHERE $50,000 OR LESS IN DIS18 PUTE.—

19 (1) IN GENERAL.—The rules of each agency board shall include a

20 procedure for the expedited disposition of any appeal from a decision

21 of a contracting officer where the amount in dispute is $50,000 or less.

22 The small claims procedure is applicable at the sole election of the con23 tractor.

24 (2) SIMPLIFIED RULES OF PROCEDURE.—The small claims proce25 dure shall provide for simplified rules of procedure to facilitate the de26 cision of any appeal. An appeal under the small claims procedure may

27 be decided by a single member of the agency board with such concur28 rences as may be provided by rule or regulation.

29 (3) TIME OF DECISION.—An appeal under the small claims proce30 dure shall be resolved, whenever possible, within 120 days from the

31 date the contractor elects to use the procedure.

32 (4) FINALITY OF DECISION.—A decision against the Federal Govern33 ment or against the contractor reached under the small claims proce34 dure is final and conclusive and may not be set aside except in cases

35 of fraud.

36 (5) NO PRECEDENT.—Administrative determinations and final deci37 sions under this subsection have no value as precedent for future cases

38 under this chapter.

39 (6) REVIEW OF REQUISITE AMOUNT IN CONTROVERSY.—The Admin40 istrator, from time to time, may review the dollar amount specified in

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1 paragraph (1) and adjust the amount in accordance with economic in2 dexes selected by the Administrator.

3 § 6907. Judicial review of agency board decisions

4 (a) REVIEW.—

5 (1) IN GENERAL.—The decision of an agency board is final, except

6 that—

7 (A) a contractor may appeal the decision to the United States

8 Court of Appeals for the Federal Circuit within 120 days from the

9 date the contractor receives a copy of the decision; or

10 (B) if an agency head determines that an appeal should be

11 taken, the agency head, with the prior approval of the Attorney

12 General, may transmit the decision to the United States Court of

13 Appeals for the Federal Circuit for judicial review under section

14 1295 of title 28, within 120 days from the date the agency re15 ceives a copy of the decision.

16 (2) TENNESSEE VALLEY AUTHORITY.—Notwithstanding paragraph

17 (1), a decision of the agency board of the Tennessee Valley Authority

18 is final, except that—

19 (A) a contractor may appeal the decision to a United States dis20 trict court pursuant to section 1337 of title 28, within 120 days

21 from the date the contractor receives a copy of the decision; or

22 (B) the Tennessee Valley Authority may appeal the decision to

23 a United States district court pursuant to section 1337 of title 28,

24 within 120 days from the date of the decision.

25 (3) REVIEW OF ARBITRATION.—An award by an arbitrator under

26 this chapter shall be reviewed pursuant to sections 9 to 13 of title 9,

27 except that the court may set aside or limit any award that is found

28 to violate limitations imposed by Federal statute.

29 (b) FINALITY OF AGENCY BOARD DECISIONS ON QUESTIONS OF LAW

30 AND FACT.—Notwithstanding any contract provision, regulation, or rule of

31 law to the contrary, in an appeal by a contractor or the Federal Government

32 from the decision of an agency board pursuant to subsection (a)—

33 (1) the decision of the agency board on a question of law is not final

34 or conclusive; but

35 (2) the decision of the agency board on a question of fact is final

36 and conclusive and may not be set aside unless the decision is—

37 (A) fraudulent, arbitrary, or capricious;

38 (B) so grossly erroneous as to necessarily imply bad faith; or

39 (C) not supported by substantial evidence.

40 (c) REMAND.—In an appeal by a contractor or the Federal Government

41 from the decision of an agency board pursuant to subsection (a), the court

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1 may render an opinion and judgment and remand the case for further ac2 tion by the agency board or by the executive agency as appropriate, with

3 direction the court considers just and proper.

4 (d) CONSOLIDATION.—If 2 or more actions arising from one contract are

5 filed in the United States Court of Federal Claims and one or more agency

6 boards, for the convenience of parties or witnesses or in the interest of jus7 tice, the United States Court of Federal Claims may order the consolidation

8 of the actions in that court or transfer any actions to or among the agency

9 boards involved.

10 (e) JUDGMENTS AS TO FEWER THAN ALL CLAIMS OR PARTIES.—In an

11 action filed pursuant to this chapter involving 2 or more claims, counter12 claims, cross-claims, or third-party claims, and where a portion of one of

13 the claims can be divided for purposes of decision or judgment, and in any

14 action where multiple parties are involved, the court, whenever appropriate,

15 may enter a judgment as to one or more but fewer than all of the claims

16 or portions of claims or parties.

17 (f) ADVISORY OPINIONS.—

18 (1) IN GENERAL.—Whenever an action involving an issue described

19 in paragraph (2) is pending in a district court of the United States,

20 the district court may request an agency board to provide the court

21 with an advisory opinion on the matters of contract interpretation

22 under consideration.

23 (2) APPLICABLE ISSUE.—An issue referred to in paragraph (1) is

24 any issue that could be the proper subject of a final decision of a con25 tracting officer appealable under this chapter.

26 (3) REFERRAL TO AGENCY BOARD WITH JURISDICTION.—A district

27 court shall direct a request under paragraph (1) to the agency board

28 having jurisdiction under this chapter to adjudicate appeals of contract

29 claims under the contract being interpreted by the court.

30 (4) TIMELY RESPONSE.—After receiving a request for an advisory

31 opinion under paragraph (1), an agency board shall provide the advi32 sory opinion in a timely manner to the district court making the re33 quest.

34 § 6908. Payment of claims

35 (a) JUDGMENTS.—Any judgment against the Federal Government on a

36 claim under this chapter shall be paid promptly in accordance with the pro37 cedures provided by section 1304 of title 31.

38 (b) MONETARY AWARDS.—Any monetary award to a contractor by an

39 agency board shall be paid promptly in accordance with the procedures con40 tained in subsection (a).

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1 (c) REIMBURSEMENT.—Payments made pursuant to subsections (a) and

2 (b) shall be reimbursed to the fund provided by section 1304 of title 31 by

3 the agency whose appropriations were used for the contract out of available

4 amounts or by obtaining additional appropriations for purposes of reim5 bursement.

6 (d) TENNESSEE VALLEY AUTHORITY.—

7 (1) JUDGMENTS.—Notwithstanding subsections (a) to (c), any judg8 ment against the Tennessee Valley Authority on a claim under this

9 chapter shall be paid promptly in accordance with section 9(b) of the

10 Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)).

11 (2) MONETARY AWARDS.—Notwithstanding subsections (a) to (c),

12 any monetary award to a contractor by the agency board of the Ten13 nessee Valley Authority shall be paid in accordance with section 9(b)

14 of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)).

15 § 6909. Interest

16 (a) PERIOD.—

17 (1) IN GENERAL.—Interest on an amount found due a contractor on

18 a claim shall be paid to the contractor for the period beginning with

19 the date the contracting officer receives the contractor’s claim, pursu20 ant to section 6903(a) of this title, until the date of payment of the

21 claim.

22 (2) DEFECTIVE CERTIFICATION.—On a claim for which the certifi23 cation under section 6903(b)(1) of this title is found to be defective,

24 any interest due under this section shall be paid for the period begin25 ning with the date the contracting officer initially receives the contrac26 tor’s claim until the date of payment of the claim.

27 (b) RATE.—Interest shall accrue and be paid at a rate which the Sec28 retary of the Treasury shall specify as applicable for each successive 6-

29 month period. The rate shall be determined by the Secretary of the Treas30 ury taking into consideration current private commercial rates of interest

31 for new loans maturing in approximately 5 years.

32 Subtitle III—Miscellaneous

Chapter Sec.

81. Drug-Free Workplace .............................................................................. 8101

83. Buy American ............................................................................................. 8301

85. Committee for Purchase From People Who Are Blind or Severely Disabled.8501

87. Kickbacks ..................................................................................................... 8701

33 CHAPTER 81—DRUG-FREE WORKPLACE

Sec.

8101. Definitions and construction.

8102. Drug-free workplace requirements for Federal contractors.

8103. Drug-free workplace requirements for Federal grant recipients.

8104. Employee sanctions and remedies.

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8105. Waiver.

8106. Regulations.

1 § 8101. Definitions and construction

2 (a) DEFINITIONS.—In this chapter:

3 (1) CONTRACTOR.—The term ‘‘contractor’’ means the department,

4 division, or other unit of a person responsible for the performance

5 under the contract.

6 (2) CONTROLLED SUBSTANCE.—The term ‘‘controlled substance’’

7 means a controlled substance in schedules I through V of section 202

8 of the Comprehensive Drug Abuse Prevention and Control Act of 1970

9 (21 U.S.C. 812).

10 (3) CONVICTION.—The term ‘‘conviction’’ means a finding of guilt

11 (including a plea of nolo contendere), an imposition of sentence, or

12 both, by a judicial body charged with the responsibility to determine

13 violations of Federal or State criminal drug statutes.

14 (4) CRIMINAL DRUG STATUTE.—The term ‘‘criminal drug statute’’

15 means a criminal statute involving manufacture, distribution, dispensa16 tion, use, or possession of a controlled substance.

17 (5) DRUG-FREE WORKPLACE.—The term ‘‘drug-free workplace’’

18 means a site of an entity—

19 (A) for the performance of work done in connection with a spe20 cific contract or grant described in section 8102 or 8103 of this

21 title; and

22 (B) at which employees of the entity are prohibited from engag23 ing in the unlawful manufacture, distribution, dispensation, pos24 session, or use of a controlled substance in accordance with the

25 requirements of the Anti-Drug Abuse Act of 1988 (Public Law

26 100–690, 102 Stat. 4181).

27 (6) EMPLOYEE.—The term ‘‘employee’’ means the employee of a

28 contractor or grantee directly engaged in the performance of work pur29 suant to the contract or grant described in section 8102 or 8103 of

30 this title.

31 (7) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means an agen32 cy as defined in section 552(f) of title 5.

33 (8) GRANTEE.—The term ‘‘grantee’’ means the department, division,

34 or other unit of a person responsible for the performance under the

35 grant.

36 (b) CONSTRUCTION.—This chapter does not require law enforcement

37 agencies to comply with this chapter if the head of the agency determines

38 it would be inappropriate in connection with the agency’s undercover oper39 ations.

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1 § 8102. Drug-free workplace requirements for Federal con2 tractors

3 (a) IN GENERAL.—

4 (1) PERSONS OTHER THAN INDIVIDUALS.—A person other than an

5 individual shall not be considered a responsible source (as defined in

6 section 113 of this title) for the purposes of being awarded a contract

7 for the procurement of any property or services of a value greater than

8 the simplified acquisition threshold (as defined in section 134 of this

9 title) by a Federal agency, other than a contract for the procurement

10 of commercial items (as defined in section 103 of this title), unless the

11 person agrees to provide a drug-free workplace by—

12 (A) publishing a statement notifying employees that the unlaw13 ful manufacture, distribution, dispensation, possession, or use of

14 a controlled substance is prohibited in the person’s workplace and

15 specifying the actions that will be taken against employees for vio16 lations of the prohibition;

17 (B) establishing a drug-free awareness program to inform em18 ployees about—

19 (i) the dangers of drug abuse in the workplace;

20 (ii) the person’s policy of maintaining a drug-free work21 place;

22 (iii) available drug counseling, rehabilitation, and employee

23 assistance programs; and

24 (iv) the penalties that may be imposed on employees for

25 drug abuse violations;

26 (C) making it a requirement that each employee to be engaged

27 in the performance of the contract be given a copy of the state28 ment required by subparagraph (A);

29 (D) notifying the employee in the statement required by sub30 paragraph (A) that as a condition of employment on the contract

31 the employee will—

32 (i) abide by the terms of the statement; and

33 (ii) notify the employer of any criminal drug statute convic34 tion for a violation occurring in the workplace no later than

35 5 days after the conviction;

36 (E) notifying the contracting agency within 10 days after receiv37 ing notice under subparagraph (D)(ii) from an employee or other38 wise receiving actual notice of a conviction;

39 (F) imposing a sanction on, or requiring the satisfactory partici40 pation in a drug abuse assistance or rehabilitation program by,

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1 any employee who is convicted, as required by section 8104 of this

2 title; and

3 (G) making a good faith effort to continue to maintain a drug4 free workplace through implementation of subparagraphs (A) to

5 (F).

6 (2) INDIVIDUALS.—A Federal agency shall not make a contract with

7 an individual unless the individual agrees not to engage in the unlawful

8 manufacture, distribution, dispensation, possession, or use of a con9 trolled substance in the performance of the contract.

10 (b) SUSPENSION, TERMINATION, OR DEBARMENT OF CONTRACTOR.—

11 (1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBARMENT.—

12 Payment under a contract awarded by a Federal agency may be sus13 pended and the contract may be terminated, and the contractor or indi14 vidual who made the contract with the agency may be suspended or

15 debarred in accordance with the requirements of this section, if the

16 head of the agency determines that—

17 (A) the contractor is violating, or has violated, the requirements

18 of subparagraph (A), (B), (C), (D), (E), or (F) of subsection

19 (a)(1); or

20 (B) the number of employees of the contractor who have been

21 convicted of violations of criminal drug statutes for violations oc22 curring in the workplace indicates that the contractor has failed

23 to make a good faith effort to provide a drug-free workplace as

24 required by subsection (a).

25 (2) CONDUCT OF SUSPENSION, TERMINATION, AND DEBARMENT

26 PROCEEDINGS.—A contracting officer who determines in writing that

27 cause for suspension of payments, termination, or suspension or debar28 ment exists shall initiate an appropriate action, to be conducted by the

29 agency concerned in accordance with the Federal Acquisition Regula30 tion and applicable agency procedures. The Federal Acquisition Regula31 tion shall be revised to include rules for conducting suspension and de32 barment proceedings under this subsection, including rules providing

33 notice, opportunity to respond in writing or in person, and other proce34 dures as may be necessary to provide a full and fair proceeding to a

35 contractor or individual.

36 (3) EFFECT OF DEBARMENT.—A contractor or individual debarred

37 by a final decision under this subsection is ineligible for award of a

38 contract by a Federal agency, and for participation in a future procure39 ment by a Federal agency, for a period specified in the decision, not

40 to exceed 5 years.

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1 § 8103. Drug-free workplace requirements for Federal grant

2 recipients

3 (a) IN GENERAL.—

4 (1) PERSONS OTHER THAN INDIVIDUALS.—A person other than an

5 individual shall not receive a grant from a Federal agency unless the

6 person agrees to provide a drug-free workplace by—

7 (A) publishing a statement notifying employees that the unlaw8 ful manufacture, distribution, dispensation, possession, or use of

9 a controlled substance is prohibited in the grantee’s workplace and

10 specifying the actions that will be taken against employees for vio11 lations of the prohibition;

12 (B) establishing a drug-free awareness program to inform em13 ployees about—

14 (i) the dangers of drug abuse in the workplace;

15 (ii) the grantee’s policy of maintaining a drug-free work16 place;

17 (iii) available drug counseling, rehabilitation, and employee

18 assistance programs; and

19 (iv) the penalties that may be imposed on employees for

20 drug abuse violations;

21 (C) making it a requirement that each employee to be engaged

22 in the performance of the grant be given a copy of the statement

23 required by subparagraph (A);

24 (D) notifying the employee in the statement required by sub25 paragraph (A) that as a condition of employment in the grant the

26 employee will—

27 (i) abide by the terms of the statement; and

28 (ii) notify the employer of any criminal drug statute convic29 tion for a violation occurring in the workplace no later than

30 5 days after the conviction;

31 (E) notifying the granting agency within 10 days after receiving

32 notice under subparagraph (D)(ii) from an employee or otherwise

33 receiving actual notice of a conviction;

34 (F) imposing a sanction on, or requiring the satisfactory partici35 pation in a drug abuse assistance or rehabilitation program by,

36 any employee who is convicted, as required by section 8104 of this

37 title; and

38 (G) making a good faith effort to continue to maintain a drug39 free workplace through implementation of subparagraphs (A) to

40 (F).

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1 (2) INDIVIDUALS.—A Federal agency shall not make a grant to an

2 individual unless the individual agrees not to engage in the unlawful

3 manufacture, distribution, dispensation, possession, or use of a con4 trolled substance in conducting an activity with the grant.

5 (b) SUSPENSION, TERMINATION, OR DEBARMENT OF GRANTEE.—

6 (1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBARMENT.—

7 Payment under a grant awarded by a Federal agency may be sus8 pended and the grant may be terminated, and the grantee may be sus9 pended or debarred, in accordance with the requirements of this sec10 tion, if the head of the agency or the official designee of the head of

11 the agency determines in writing that—

12 (A) the grantee is violating, or has violated, the requirements

13 of subparagraph (A), (B), (C), (D), (E), (F), or (G) of subsection

14 (a)(1); or

15 (B) the number of employees of the grantee who have been con16 victed of violations of criminal drug statutes for violations occur17 ring in the workplace indicates that the grantee has failed to make

18 a good faith effort to provide a drug-free workplace as required

19 by subsection (a)(1).

20 (2) CONDUCT OF SUSPENSION, TERMINATION, AND DEBARMENT

21 PROCEEDINGS.—A suspension of payments, termination, or suspension

22 or debarment proceeding subject to this subsection shall be conducted

23 in accordance with applicable law, including Executive Order 12549 or

24 any superseding executive order and any regulations prescribed to im25 plement the law or executive order.

26 (3) EFFECT OF DEBARMENT.—A grantee debarred by a final deci27 sion under this subsection is ineligible for award of a grant by a Fed28 eral agency, and for participation in a future grant by a Federal agen29 cy, for a period specified in the decision, not to exceed 5 years.

30 § 8104. Employee sanctions and remedies

31 Within 30 days after receiving notice from an employee of a conviction

32 pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) of this title, a

33 contractor or grantee shall—

34 (1) take appropriate personnel action against the employee, up to

35 and including termination; or

36 (2) require the employee to satisfactorily participate in a drug abuse

37 assistance or rehabilitation program approved for those purposes by a

38 Federal, State, or local health, law enforcement, or other appropriate

39 agency.

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1 § 8105. Waiver

2 (a) IN GENERAL.—The head of an agency may waive a suspension of

3 payments, termination of the contract or grant, or suspension or debarment

4 of a contractor or grantee under this chapter with respect to a particular

5 contract or grant if—

6 (1) in the case of a contract, the head of the agency determines

7 under section 8102(b)(1) of this title, after a final determination is

8 issued under section 8102(b)(1), that suspension of payments, termi9 nation of the contract, suspension or debarment of the contractor, or

10 refusal to permit a person to be treated as a responsible source for a

11 contract would severely disrupt the operation of the agency to the det12 riment of the Federal Government or the general public; or

13 (2) in the case of a grant, the head of the agency determines that

14 suspension of payments, termination of the grant, or suspension or de15 barment of the grantee would not be in the public interest.

16 (b) WAIVER AUTHORITY MAY NOT BE DELEGATED.—The authority of

17 the head of an agency under this section to waive a suspension, termination,

18 or debarment shall not be delegated.

19 § 8106. Regulations

20 Government-wide regulations governing actions under this chapter shall

21 be issued pursuant to part B of subtitle I of this title.

22 CHAPTER 83—BUY AMERICAN

Sec.

8301. Definitions.

8302. American materials required for public use.

8303. Contracts for public works.

8304. Waiver rescission.

8305. Annual report.

23 § 8301. Definitions

24 In this chapter:

25 (1) PUBLIC BUILDING, PUBLIC USE, AND PUBLIC WORK.—The terms

26 ‘‘public building’’, ‘‘public use’’, and ‘‘public work’’ mean a public

27 building of, use by, and a public work of, the Federal Government, the

28 District of Columbia, Puerto Rico, American Samoa, and the Virgin Is29 lands.

30 (2) UNITED STATES.—The term ‘‘United States’’ includes any place

31 subject to the jurisdiction of the United States.

32 § 8302. American materials required for public use

33 (a) IN GENERAL.—Only unmanufactured articles, materials, and supplies

34 that have been mined or produced in the United States, and only manufac35 tured articles, materials, and supplies that have been manufactured in the

36 United States substantially all from articles, materials, or supplies mined,

37 produced, or manufactured in the United States, shall be acquired for public

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1 use unless the head of the department or independent establishment con2 cerned determines their acquisition to be inconsistent with the public inter3 est or their cost to be unreasonable.

4 (b) EXCEPTIONS.—This section does not apply—

5 (1) to articles, materials, or supplies for use outside the United

6 States;

7 (2) if articles, materials, or supplies of the class or kind to be used,

8 or the articles, materials, or supplies from which they are manufac9 tured, are not mined, produced, or manufactured in the United States

10 in sufficient and reasonably available commercial quantities and are not

11 of a satisfactory quality; and

12 (3) to manufactured articles, materials, or supplies procured under

13 any contract with an award value that is not more than the micro-pur14 chase threshold under section 1902 of this title.

15 § 8303. Contracts for public works

16 (a) IN GENERAL.—Every contract for the construction, alteration, or re17 pair of any public building or public work in the United States shall contain

18 a provision that in the performance of the work the contractor, subcontrac19 tors, material men, or suppliers shall use only—

20 (1) unmanufactured articles, materials, and supplies that have been

21 mined or produced in the United States; and

22 (2) manufactured articles, materials, and supplies that have been

23 manufactured in the United States substantially all from articles, mate24 rials, or supplies mined, produced, or manufactured in the United

25 States.

26 (b) EXCEPTIONS.—

27 (1) IN GENERAL.—This section does not apply—

28 (A) to articles, materials, or supplies for use outside the United

29 States;

30 (B) if articles, materials, or supplies of the class or kind to be

31 used, or the articles, materials, or supplies from which they are

32 manufactured, are not mined, produced, or manufactured in the

33 United States in sufficient and reasonably available commercial

34 quantities and are not of a satisfactory quality; and

35 (C) to manufactured articles, materials, or supplies procured

36 under any contract with an award value that is not more than the

37 micro-purchase threshold under section 1902 of this title.

38 (2) PARTICULAR ARTICLE, MATERIAL, OR SUPPLY.—If the head of

39 the department or independent establishment making the contract finds

40 that it is impracticable to comply with subsection (a) for a particular

41 article, material, or supply or that it would unreasonably increase the

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1 cost, an exception shall be noted in the specifications for that article,

2 material, or supply and a public record of the findings that justified

3 the exception shall be made.

4 (3) INCONSISTENT WITH PUBLIC INTEREST.—Subsection (a) shall be

5 regarded as requiring the purchase, for public use within the United

6 States, of articles, materials, or supplies manufactured in the United

7 States in sufficient and reasonably available commercial quantities and

8 of a satisfactory quality, unless the head of the department or inde9 pendent establishment concerned determines their purchase to be in10 consistent with the public interest or their cost to be unreasonable.

11 (c) RESULTS OF FAILURE TO COMPLY.—If the head of a department, bu12 reau, agency, or independent establishment that has made a contract con13 taining the provision required by subsection (a) finds that there has been

14 a failure to comply with the provision in the performance of the contract,

15 the head of the department, bureau, agency, or independent establishment

16 shall make the findings public. The findings shall include the name of the

17 contractor obligated under the contract. The contractor, and any subcon18 tractor, material man, or supplier associated or affiliated with the con19 tractor, shall not be awarded another contract for the construction, alter20 ation, or repair of any public building or public work for 3 years after the

21 findings are made public.

22 § 8304. Waiver rescission

23 (a) TYPE OF AGREEMENT.—An agreement referred to in subsection (b)

24 is a reciprocal defense procurement memorandum of understanding between

25 the United States and a foreign country pursuant to which the Secretary

26 of Defense has prospectively waived this chapter for certain products in that

27 country.

28 (b) DETERMINATION BY SECRETARY OF DEFENSE.—If the Secretary of

29 Defense, after consultation with the United States Trade Representative,

30 determines that a foreign country that is party to an agreement described

31 in subsection (a) has violated the agreement by discriminating against cer32 tain types of products produced in the United States that are covered by

33 the agreement, the Secretary of Defense shall rescind the Secretary’s blan34 ket waiver of this chapter with respect to those types of products produced

35 in that country.

36 § 8305. Annual report

37 Not later than 60 days after the end of each fiscal year, the Secretary

38 of Defense shall submit to Congress a report on the amount of purchases

39 by the Department of Defense from foreign entities in that fiscal year. The

40 report shall separately indicate the dollar value of items for which this chap41 ter was waived pursuant to—

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1 (1) a reciprocal defense procurement memorandum of understanding

2 described in section 8304(a) of this title;

3 (2) the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.); or

4 (3) an international agreement to which the United States is a party.

5 CHAPTER 85—COMMITTEE FOR PURCHASE FROM

6 PEOPLE WHO ARE BLIND OR SEVERELY DISABLED

Sec.

8501. Definitions.

8502. Committee for Purchase From People Who Are Blind or Severely Disabled.

8503. Duties and powers of the Committee.

8504. Procurement requirements for the Federal Government.

8505. Audit.

8506. Authorization of appropriations.

7 § 8501. Definitions

8 In this chapter:

9 (1) BLIND.—The term ‘‘blind’’ refers to an individual or class of in10 dividuals whose central visual acuity does not exceed 20/200 in the bet11 ter eye with correcting lenses or whose visual acuity, if better than 20/

12 200, is accompanied by a limit to the field of vision in the better eye

13 to such a degree that its widest diameter subtends an angle of no

14 greater than 20 degrees.

15 (2) COMMITTEE.—The term ‘‘Committee’’ means the Committee for

16 Purchase From People Who Are Blind or Severely Disabled established

17 under section 8502 of this title.

18 (3) DIRECT LABOR.—The term ‘‘direct labor’’—

19 (A) includes all work required for preparation, processing, and

20 packing of a product, or work directly relating to the performance

21 of a service; but

22 (B) does not include supervision, administration, inspection, or

23 shipping.

24 (4) ENTITY OF THE FEDERAL GOVERNMENT AND FEDERAL GOVERN25 MENT.—The terms ‘‘entity of the Federal Government’’ and ‘‘Federal

26 Government’’ include an entity of the legislative or judicial branch, a

27 military department or executive agency (as defined in sections 102

28 and 105 of title 5, respectively), the United States Postal Service, and

29 a nonappropriated fund instrumentality under the jurisdiction of the

30 Armed Forces.

31 (5) OTHER SEVERELY DISABLED.—The term ‘‘other severely dis32 abled’’ means an individual or class of individuals under a physical or

33 mental disability, other than blindness, which (according to criteria es34 tablished by the Committee after consultation with appropriate entities

35 of the Federal Government and taking into account the views of non36 Federal Government entities representing the disabled) constitutes a

37 substantial handicap to employment and is of a nature that prevents

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1 the individual from currently engaging in normal competitive employ2 ment.

3 (6) QUALIFIED NONPROFIT AGENCY FOR OTHER SEVERELY DIS4 ABLED.—The term ‘‘qualified nonprofit agency for other severely dis5 abled’’ means an agency—

6 (A)(i) organized under the laws of the United States or a State;

7 (ii) operated in the interest of severely disabled individuals who

8 are not blind; and

9 (iii) of which no part of the net income of the agency inures

10 to the benefit of a shareholder or other individual;

11 (B) that complies with any applicable occupational health and

12 safety standard prescribed by the Secretary of Labor; and

13 (C) that in the production of products and in the provision of

14 services (whether or not the products or services are procured

15 under this chapter) during the fiscal year employs blind or other

16 severely disabled individuals for at least 75 percent of the hours

17 of direct labor required for the production or provision of the

18 products or services.

19 (7) QUALIFIED NONPROFIT AGENCY FOR THE BLIND.—The term

20 ‘‘qualified nonprofit agency for the blind’’ means an agency—

21 (A)(i) organized under the laws of the United States or a State;

22 (ii) operated in the interest of blind individuals; and

23 (iii) of which no part of the net income of the agency inures

24 to the benefit of a shareholder or other individual;

25 (B) that complies with any applicable occupational health and

26 safety standard prescribed by the Secretary of Labor; and

27 (C) that in the production of products and in the provision of

28 services (whether or not the products or services are procured

29 under this chapter) during the fiscal year employs blind individ30 uals for at least 75 percent of the hours of direct labor required

31 for the production or provision of the products or services.

32 (8) SEVERELY DISABLED INDIVIDUAL.—The term ‘‘severely disabled

33 individual’’ means an individual or class of individuals under a physical

34 or mental disability, other than blindness, which (according to criteria

35 established by the Committee after consultation with appropriate enti36 ties of the Federal Government and taking into account the views of

37 non-Federal Government entities representing the disabled) constitutes

38 a substantial handicap to employment and is of a nature that prevents

39 the individual from currently engaging in normal competitive employ40 ment.

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1 (9) STATE.—The term ‘‘State’’ includes the District of Columbia,

2 Puerto Rico, the Virgin Islands, Guam, American Samoa, and the

3 Northern Mariana Islands.

4 § 8502. Committee for Purchase From People Who Are Blind

5 or Severely Disabled

6 (a) ESTABLISHMENT.—There is a Committee for Purchase From People

7 Who Are Blind or Severely Disabled.

8 (b) COMPOSITION.—The Committee consists of 15 members appointed by

9 the President as follows:

10 (1) One officer or employee from each of the following, nominated

11 by the head of the department or agency:

12 (A) The Department of Agriculture.

13 (B) The Department of Defense.

14 (C) The Department of the Army.

15 (D) The Department of the Navy.

16 (E) The Department of the Air Force.

17 (F) The Department of Education.

18 (G) The Department of Commerce.

19 (H) The Department of Veterans Affairs.

20 (I) The Department of Justice.

21 (J) The Department of Labor.

22 (K) The General Services Administration.

23 (2) One member from individuals who are not officers or employees

24 of the Federal Government and who are conversant with the problems

25 incident to the employment of the blind.

26 (3) One member from individuals who are not officers or employees

27 of the Federal Government and who are conversant with the problems

28 incident to the employment of other severely disabled individuals.

29 (4) One member from individuals who are not officers or employees

30 of the Federal Government and who represent blind individuals em31 ployed in qualified nonprofit agencies for the blind.

32 (5) One member from individuals who are not officers or employees

33 of the Federal Government and who represent severely disabled individ34 uals (other than blind individuals) employed in qualified nonprofit

35 agencies for other severely disabled individuals.

36 (c) TERMS OF OFFICE.—Members appointed under paragraph (2), (3),

37 (4), or (5) of subsection (b) shall be appointed for terms of 5 years and

38 may be reappointed if the member meets the qualifications prescribed by

39 those paragraphs.

40 (d) CHAIRMAN.—The members of the Committee shall elect one of the

41 members to be Chairman.

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1 (e) VACANCY.—

2 (1) MANNER IN WHICH FILLED.—A vacancy in the membership of

3 the Committee shall be filled in the manner in which the original ap4 pointment was made.

5 (2) UNFULFILLED TERM.—A member appointed under paragraph

6 (2), (3), (4), or (5) of subsection (b) to fill a vacancy occurring prior

7 to the expiration of the term for which the predecessor was appointed

8 shall be appointed only for the remainder of the term. The member

9 may serve after the expiration of a term until a successor takes office.

10 (f) PAY AND TRAVEL EXPENSES.—

11 (1) AMOUNT TO WHICH MEMBERS ARE ENTITLED.—Except as pro12 vided in paragraph (2), members of the Committee are entitled to re13 ceive the daily equivalent of the maximum annual rate of basic pay

14 payable under section 5376 of title 5 for each day (including travel15 time) during which they perform services for the Committee. A member

16 is entitled to travel expenses, including a per diem allowance instead

17 of subsistence, as provided under section 5703 of title 5.

18 (2) OFFICERS OR EMPLOYEES OF THE FEDERAL GOVERNMENT.—

19 Members who are officers or employees of the Federal Government may

20 not receive additional pay because of their service on the Committee.

21 (g) STAFF.—

22 (1) APPOINTMENT AND COMPENSATION.—Subject to rules the Com23 mittee may adopt and to chapters 33 and 51 and subchapter III of

24 chapter 53 of title 5, the Chairman may appoint and fix the pay of

25 personnel the Committee determines are necessary to assist it in car26 rying out this chapter.

27 (2) PERSONNEL FROM OTHER ENTITIES.—On request of the Com28 mittee, the head of an entity of the Federal Government may detail,

29 on a reimbursable basis, any personnel of the entity to the Committee

30 to assist it in carrying out this chapter.

31 (h) OBTAINING OFFICIAL INFORMATION.—The Committee may secure di32 rectly from an entity of the Federal Government information necessary to

33 enable it to carry out this chapter. On request of the Chairman, the head

34 of the entity shall furnish the information to the Committee.

35 (i) ADMINISTRATIVE SUPPORT SERVICES.—The Administrator of General

36 Services shall provide to the Committee, on a reimbursable basis, adminis37 trative support services the Committee requests.

38 (j) ANNUAL REPORT.—Not later than December 31 of each year, the

39 Committee shall transmit to the President a report that includes the names

40 of the Committee members serving in the prior fiscal year, the dates of

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1 mittee under this chapter in that year, and any recommendations for

2 changes in this chapter which the Committee determines are necessary.

3 § 8503. Duties and powers of the Committee

4 (a) PROCUREMENT LIST.—

5 (1) MAINTENANCE OF LIST.—The Committee shall maintain and

6 publish in the Federal Register a procurement list. The list shall in7 clude the following products and services determined by the Committee

8 to be suitable for the Federal Government to procure pursuant to this

9 chapter:

10 (A) Products produced by a qualified nonprofit agency for the

11 blind or by a qualified nonprofit agency for other severely disabled.

12 (B) The services those agencies provide.

13 (2) CHANGES TO LIST.—The Committee may, by rule made in ac14 cordance with the requirements of section 553(b) to (e) of title 5, add

15 to and remove from the procurement list products so produced and

16 services so provided.

17 (b) FAIR MARKET PRICE.—The Committee shall determine the fair mar18 ket price of products and services contained on the procurement list that

19 are offered for sale to the Federal Government by a qualified nonprofit

20 agency for the blind or a qualified nonprofit agency for other severely dis21 abled. The Committee from time to time shall revise its price determinations

22 with respect to those products and services in accordance with changing

23 market conditions.

24 (c) CENTRAL NONPROFIT AGENCY OR AGENCIES.—The Committee shall

25 designate a central nonprofit agency or agencies to facilitate the distribu26 tion, by direct allocation, subcontract, or any other means, of orders of the

27 Federal Government for products and services on the procurement list

28 among qualified nonprofit agencies for the blind or qualified nonprofit agen29 cies for other severely disabled.

30 (d) REGULATIONS.—The Committee—

31 (1) may prescribe regulations regarding specifications for products

32 and services on the procurement list, the time of their delivery, and

33 other matters as necessary to carry out this chapter; and

34 (2) shall prescribe regulations providing that when the Federal Gov35 ernment purchases products produced and offered for sale by qualified

36 nonprofit agencies for the blind or qualified nonprofit agencies for

37 other severely disabled, priority shall be given to products produced and

38 offered for sale by qualified nonprofit agencies for the blind.

39 (e) STUDY AND EVALUATION OF ACTIVITIES.—The Committee shall

40 make a continuing study and evaluation of its activities under this chapter

41 to ensure effective and efficient administration of this chapter. The Comjcorcoran on PRODPC62 with HEARING


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1 mittee on its own or in cooperation with other public or nonprofit private

2 agencies may study—

3 (1) problems related to the employment of the blind and other se4 verely disabled individuals; and

5 (2) the development and adaptation of production methods that

6 would enable a greater utilization of the blind and other severely dis7 abled individuals.

8 § 8504. Procurement requirements for the Federal Govern9 ment

10 (a) IN GENERAL.—An entity of the Federal Government intending to pro11 cure a product or service on the procurement list referred to in section 8503

12 of this title shall procure the product or service from a qualified nonprofit

13 agency for the blind or a qualified nonprofit agency for other severely dis14 abled in accordance with regulations of the Committee and at the price the

15 Committee establishes if the product or service is available within the period

16 required by the entity.

17 (b) EXCEPTION.—This section does not apply to the procurement of a

18 product that is available from an industry established under chapter 307

19 of title 18 and that is required under section 4124 of title 18 to be procured

20 from that industry.

21 § 8505. Audit

22 For the purpose of audit and examination, the Comptroller General shall

23 have access to the books, documents, papers, and other records of—

24 (1) the Committee and of each central nonprofit agency the Com25 mittee designates under section 8503(c) of this title; and

26 (2) qualified nonprofit agencies for the blind and qualified nonprofit

27 agencies for other severely disabled that have sold products or services

28 under this chapter to the extent those books, documents, papers, and

29 other records relate to the activities of the agency in a fiscal year in

30 which a sale was made under this chapter.

31 § 8506. Authorization of appropriations

32 Necessary amounts may be appropriated to the Committee to carry out

33 this chapter.

34 CHAPTER 87—KICKBACKS

Sec.

8701. Definitions.

8702. Prohibited conduct.

8703. Contractor responsibilities.

8704. Inspection authority.

8705. Administrative offsets.

8706. Civil actions.

8707. Criminal penalties.

35 § 8701. Definitions

36 In this chapter:

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1 (1) CONTRACTING AGENCY.—The term ‘‘contracting agency’’, when

2 used with respect to a prime contractor, means a department, agency,

3 or establishment of the Federal Government that enters into a prime

4 contract with a prime contractor.

5 (2) KICKBACK.—The term ‘‘kickback’’ means any money, fee, com6 mission, credit, gift, gratuity, thing of value, or compensation of any

7 kind that is provided to a prime contractor, prime contractor employee,

8 subcontractor, or subcontractor employee to improperly obtain or re9 ward favorable treatment in connection with a prime contract or a sub10 contract relating to a prime contract.

11 (3) PRIME CONTRACT.—The term ‘‘prime contract’’ means a con12 tract or contractual action entered into by the Federal Government to

13 obtain supplies, materials, equipment, or services of any kind.

14 (4) PRIME CONTRACTOR.—The term ‘‘prime contractor’’ means a

15 person that has entered into a prime contract with the Federal Govern16 ment.

17 (5) PRIME CONTRACTOR EMPLOYEE.—The term ‘‘prime contractor

18 employee’’ means an officer, partner, employee, or agent of a prime

19 contractor.

20 (6) SUBCONTRACT.—The term ‘‘subcontract’’ means a contract or

21 contractual action entered into by a prime contractor or subcontractor

22 to obtain supplies, materials, equipment, or services of any kind under

23 a prime contract.

24 (7) SUBCONTRACTOR.—The term ‘‘subcontractor’’—

25 (A) means a person, other than the prime contractor, that offers

26 to furnish or furnishes supplies, materials, equipment, or services

27 of any kind under a prime contract or a subcontract entered into

28 in connection with the prime contract; and

29 (B) includes a person that offers to furnish or furnishes general

30 supplies to the prime contractor or a higher tier subcontractor.

31 (8) SUBCONTRACTOR EMPLOYEE.—The term ‘‘subcontractor em32 ployee’’ means an officer, partner, employee, or agent of a subcon33 tractor.

34 § 8702. Prohibited conduct

35 A person may not—

36 (1) provide, attempt to provide, or offer to provide a kickback;

37 (2) solicit, accept, or attempt to accept a kickback; or

38 (3) include the amount of a kickback prohibited by paragraph (1)

39 or (2) in the contract price—

40 (A) a subcontractor charges a prime contractor or a higher tier

41 subcontractor; or

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1 (B) a prime contractor charges the Federal Government.

2 § 8703. Contractor responsibilities

3 (a) REQUIREMENTS INCLUDED IN CONTRACTS.—Each contracting agency

4 shall include in each prime contract awarded by the agency a requirement

5 that the prime contractor shall—

6 (1) have in place and follow reasonable procedures designed to pre7 vent and detect violations of section 8702 of this title in its own oper8 ations and direct business relationships; and

9 (2) cooperate fully with a Federal Government agency investigating

10 a violation of section 8702 of this title.

11 (b) FULL COOPERATION REQUIRED.—Notwithstanding subsection (d), a

12 prime contractor shall cooperate fully with a Federal Government agency in13 vestigating a violation of section 8702 of this title.

14 (c) REPORTING REQUIREMENT.—

15 (1) IN GENERAL.—A prime contractor or subcontractor that has rea16 sonable grounds to believe that a violation of section 8702 of this title

17 may have occurred shall promptly report the possible violation in writ18 ing to the inspector general of the contracting agency, the head of the

19 contracting agency if the agency does not have an inspector general,

20 or the Attorney General.

21 (2) SUPPLYING INFORMATION AS FAVORABLE EVIDENCE.—In an ad22 ministrative or contractual action to suspend or debar a person who is

23 eligible to enter into contracts with the Federal Government, evidence

24 that the person has supplied information to the Federal Government

25 pursuant to paragraph (1) is favorable evidence of the person’s respon26 sibility for the purposes of Federal procurement laws and regulations.

27 (d) INAPPLICABILITY TO CERTAIN PRIME CONTRACTS.—Subsection (a)

28 does not apply to a prime contract—

29 (1) that is not greater than $100,000; or

30 (2) for the acquisition of commercial items (as defined in section 103

31 of this title).

32 § 8704. Inspection authority

33 (a) IN GENERAL.—To ascertain whether there has been a violation of sec34 tion 8702 of this title with respect to a prime contract, the Comptroller

35 General and the inspector general of the contracting agency, or a represent36 ative of the contracting agency designated by the head of the agency if the

37 agency does not have an inspector general, shall have access to and may

38 inspect the facilities and audit the books and records, including electronic

39 data or records, of a prime contractor or subcontractor under a prime con40 tract awarded by the agency.

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1 (b) EXCEPTION.—This section does not apply to a prime contract for the

2 acquisition of commercial items (as defined in section 103 of this title).

3 § 8705. Administrative offsets

4 (a) DEFINITION.—In this section, the term ‘‘contracting officer’’ has the

5 meaning given that term in chapter 69 of this title.

6 (b) OFFSET AUTHORITY.—A contracting officer of a contracting agency

7 may offset the amount of a kickback provided, accepted, or charged in viola8 tion of section 8702 of this title against amounts the Federal Government

9 owes the prime contractor under the prime contract to which the kickback

10 relates.

11 (c) DUTIES OF PRIME CONTRACTOR.—

12 (1) WITHHOLDING AND PAYING OVER OR RETAINING AMOUNTS.—On

13 direction of a contracting officer of a contracting agency with respect

14 to a prime contract, the prime contractor shall withhold from amounts

15 owed to a subcontractor under a subcontract of the prime contract the

16 amount of a kickback which was or may be offset against the prime

17 contractor under subsection (b). The contracting officer may order that

18 amounts withheld—

19 (A) be paid over to the contracting agency; or

20 (B) be retained by the prime contractor if the Federal Govern21 ment has already offset the amount against the prime contractor.

22 (2) NOTICE.—The prime contractor shall notify the contracting offi23 cer when an amount is withheld and retained under paragraph (1)(B).

24 (d) OFFSET, DIRECTION, OR ORDER IS CLAIM OF FEDERAL GOVERN25 MENT.—An offset under subsection (b) or a direction or order of a con26 tracting officer under subsection (c) is a claim by the Federal Government

27 for the purposes of chapter 69 of this title.

28 § 8706. Civil actions

29 (a) AMOUNT.—The Federal Government in a civil action may recover

30 from a person—

31 (1) that knowingly engages in conduct prohibited by section 8702 of

32 this title a civil penalty equal to—

33 (A) twice the amount of each kickback involved in the violation;

34 and

35 (B) not more than $10,000 for each occurrence of prohibited

36 conduct; and

37 (2) whose employee, subcontractor, or subcontractor employee vio38 lates section 8702 of this title by providing, accepting, or charging a

39 kickback a civil penalty equal to the amount of that kickback.

40 (b) STATUTE OF LIMITATIONS.—A civil action under this section must be

41 brought within 6 years after the later of the date on which—

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1 (1) the prohibited conduct establishing the cause of action occurred;

2 or

3 (2) the Federal Government first knew or should reasonably have

4 known that the prohibited conduct had occurred.

5 § 8707. Criminal penalties

6 A person that knowingly and willfully engages in conduct prohibited by

7 section 8702 of this title shall be fined under title 18, imprisoned for not

8 more than 10 years, or both.

9 SEC. 4. CONFORMING AMENDMENT.

10 Section 2410i(b)(1) of title 10, United States Code, is amended by strik11 ing ‘‘small purchase threshold’’ and substituting ‘‘simplified acquisition

12 threshold’’.

13 SEC. 5. CONFORMING CROSS-REFERENCES.

14 (a) TITLE 5.—Title 5, United States Code, is amended as follows:

15 (1) In section 504(b)(1)(C)(ii)—

16 (A) strike ‘‘section 6 of the Contract Disputes Act of 1978 (41

17 U.S.C. 605)’’ and substitute ‘‘section 6903 of title 41’’; and

18 (B) strike ‘‘section 8 of that Act (41 U.S.C. 607)’’ and sub19 stitute ‘‘section 6905 of title 41’’.

20 (2) In section 551(1)(H), strike ‘‘chapter 2 of title 41;’’.

21 (3) In section 595(c)(10), strike ‘‘title III of the Federal Property

22 and Administrative Services Act of 1949, as amended (41 U.S.C. 251–

23 260)’’ and substitute ‘‘part C of subtitle I of title 41’’.

24 (4) In section 701(b)(1)(H), strike ‘‘chapter 2 of title 41;’’.

25 (5) In section 3109(b)(3), strike ‘‘section 5’’ and substitute ‘‘section

26 6101(b) to (d)’’.

27 (6) In section 3374(c)(2), strike ‘‘section 27 of the Office of Federal

28 Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’.

29 (7) In section 3704(b)(2)(G), strike ‘‘section 27 of the Office of Fed30 eral Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’.

31 (8) In section 4105, strike ‘‘section 5’’ and substitute ‘‘section

32 6101(b) to (d)’’.

33 (9) In section 5102(c)(30), strike ‘‘section 8 of the Contract Dis34 putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’.

35 (10) In section 5372a—

36 (A) in subsection (a)(1), strike ‘‘section 8 of the Contract Dis37 putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’; and

38 (B) in subsection (a)(2), strike ‘‘section 8 of the Contract Dis39 putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’.

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1 (11) In section 7342(e)(1), strike ‘‘title III of the Federal Property

2 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

3 substitute ‘‘part C of subtitle I of title 41’’.

4 (12) In section 8709(a), strike ‘‘section 5’’ and substitute ‘‘section

5 6101(b) to (d)’’.

6 (13) In section 8714a(a), strike ‘‘section 5’’ and substitute ‘‘section

7 6101(b) to (d)’’.

8 (14) In section 8714b(a), strike ‘‘section 5’’ and substitute ‘‘section

9 6101(b) to (d)’’.

10 (15) In section 8714c(a), strike ‘‘section 5’’ and substitute ‘‘section

11 6101(b) to (d)’’.

12 (16) In section 8902(a), strike ‘‘section 5’’ and substitute ‘‘section

13 6101(b) to (d)’’.

14 (17) In section 8953(a)(1), strike ‘‘section 5’’ and substitute ‘‘sec15 tion 6101(b) to (d)’’.

16 (18) In section 8983(a)(1), strike ‘‘section 5’’ and substitute ‘‘sec17 tion 6101(b) to (d)’’.

18 (19) In section 9003—

19 (A) in subsection (a), strike ‘‘section 5’’ and substitute ‘‘section

20 6101(b) to (d)’’;

21 (B) in subsection (c)(3), before subparagraph (A), strike ‘‘the

22 Contract Disputes Act of 1978’’ and substitute ‘‘chapter 69 of

23 title 41’’;

24 (C) in subsection (c)(3)(A), strike ‘‘section 8(c) of such Act’’

25 and substitute ‘‘section 6905(c) of title 41’’; and

26 (D) in subsection (c)(3)(B), strike ‘‘section 10(a)(1) of such

27 Act’’ and substitute ‘‘section 6904(b)(1) of title 41’’.

28 (20) In section 9009, strike ‘‘section 26(f) of the Office of Federal

29 Procurement Policy Act (41 U.S.C. 422(f))’’ and substitute ‘‘section

30 1502(a) and (b) of title 41’’.

31 (b) TITLE 10.—Title 10, United States Code, is amended as follows:

32 (1) In section 133(c)(1), strike ‘‘section 16(3) of the Office of Fed33 eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute ‘‘sec34 tion 1702(c) of title 41’’.

35 (2) In section 2013(a), strike ‘‘section 3709 of the Revised Statutes

36 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’.

37 (3) In section 2194(b)(2), strike ‘‘title III of the Federal Property

38 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

39 substitute ‘‘part C of subtitle I of title 41’’.

40 (4) In section 2201—

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1 (A) in subsection (b), strike ‘‘section 3732(a) of the Revised

2 Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 6301(a) and

3 (b)(1)–(3) of title 41’’; and

4 (B) in subsection (c), strike ‘‘section 3732(a) of the Revised

5 Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 6301(a) and

6 (b)(1)–(3) of title 41’’.

7 (5) In section 2207(b), strike ‘‘section 4(11) of the Office of Federal

8 Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute ‘‘section

9 134 of title 41’’.

10 (6) In section 2225(f)—

11 (A) in paragraph (1), strike ‘‘section 16(3) of the Office of Fed12 eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute

13 ‘‘section 1702(c) of title 41’’; and

14 (B) in paragraph (2), strike ‘‘section 4(11) of the Office of Fed15 eral Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute

16 ‘‘section 134 of title 41’’.

17 (7) In section 2226(b), strike ‘‘section 4(12) of the Office of Federal

18 Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute ‘‘section

19 103 of title 41’’.

20 (8) In section 2302—

21 (A) in paragraph (3), strike ‘‘section 4 of the Office of Federal

22 Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘chapter

23 1 of title 41’’;

24 (B) in paragraph (6), strike ‘‘section 25(c)(1) of the Office of

25 Federal Procurement Policy Act (41 U.S.C. 421(c)(1))’’ and sub26 stitute ‘‘section 1303(a)(1) of title 41’’; and

27 (C) in paragraph (7), strike ‘‘section 4 of the Office of Federal

28 Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section

29 133 of title 41’’.

30 (9) In section 2302a—

31 (A) in subsection (a), strike ‘‘section 4(11) of the Office of Fed32 eral Procurement Policy Act’’ and substitute ‘‘section 134 of title

33 41’’; and

34 (B) in subsection (b), strike ‘‘section 33 of the Office of Federal

35 Procurement Policy Act’’ and substitute ‘‘section 1905 of title

36 41’’.

37 (10) In section 2302b, strike ‘‘section 31 of the Office of Federal

38 Procurement Policy Act’’ and substitute ‘‘section 1901 of title 41’’.

39 (11) In section 2302c—

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1 (A) in subsection (a)(1), strike ‘‘section 30 of the Office of Fed2 eral Procurement Policy Act (41 U.S.C. 426)’’ and substitute

3 ‘‘section 2301 of title 41’’; and

4 (B) in subsection (b), strike ‘‘section 16(3) of the Office of Fed5 eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute

6 ‘‘section 1702(c) of title 41’’.

7 (12) In section 2304—

8 (A) in subsection (f)(1)(B)(iii), strike ‘‘section 16(3) of the Of9 fice of Federal Procurement Policy Act (41 U.S.C. 414(3))’’ and

10 substitute ‘‘section 1702(c) of title 41’’;

11 (B) in subsection (f)(1)(C), strike ‘‘section 18 of the Office of

12 Federal Procurement Policy Act (41 U.S.C. 416)’’ and substitute

13 ‘‘section 1707 of title 41’’;

14 (C) in subsection (f)(2)(D), strike ‘‘the Javits-Wagner-O’Day

15 Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title

16 41’’;

17 (D) in subsection (g)(4), strike ‘‘section 31(f) of the Office of

18 Federal Procurement Policy Act (41 U.S.C. 427)’’ and substitute

19 ‘‘section 1901(f) of title 41’’; and

20 (E) in subsection (h)(1), strike ‘‘The Walsh-Healey Act (41

21 U.S.C. 35 et seq.)’’ and substitute ‘‘Chapter 65 of title 41’’.

22 (13) In section 2304b—

23 (A) in subsection (c), strike ‘‘section 18 of the Office of Federal

24 Procurement Policy Act (41 U.S.C. 416)’’ and substitute ‘‘section

25 1707 of title 41’’; and

26 (B) in subsection (f)(3), strike ‘‘section 18 of the Office of Fed27 eral Procurement Policy Act (41 U.S.C. 416)’’ and substitute

28 ‘‘section 1707 of title 41’’.

29 (14) In section 2304c(a)(1), strike ‘‘section 18 of the Office of Fed30 eral Procurement Policy Act (41 U.S.C. 416)’’ and substitute ‘‘section

31 1707 of title 41’’.

32 (15) In section 2306a(h)(3), strike ‘‘section 4(12) of the Office of

33 Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute

34 ‘‘section 103 of title 41’’.

35 (16) In section 2314, strike ‘‘Sections 3709 and 3735 of the Revised

36 Statutes (41 U.S.C. 5 and 13)’’ and substitute ‘‘Sections 6101(b)–(d)

37 and 6304 of title 41’’.

38 (17) In section 2318—

39 (A) in subsection (a)(1), strike ‘‘section 20(a) of the Office of

40 Federal Procurement Policy Act (41 U.S.C. 418(a))’’ and sub41 stitute ‘‘section 1704(a) of title 41’’; and

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1 (B) in subsection (a)(2), strike ‘‘sections 20(b) and 20(c) of the

2 Office of Federal Procurement Policy Act (41 U.S.C. 418(b), (c))’’

3 and substitute ‘‘section 1704(b) and (c) of title 41’’.

4 (18) In section 2321(h), strike ‘‘the Contract Disputes Act of 1978

5 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’.

6 (19) In section 2324—

7 (A) in subsection (d)(1), strike ‘‘section 6 of the Contract Dis8 putes Act of 1978 (41 U.S.C. 605)’’ and substitute ‘‘section 6903

9 of title 41’’;

10 (B) in subsection (d)(2), strike ‘‘section 7 of such Act (41

11 U.S.C. 606)’’ and substitute ‘‘section 6904(a) of title 41’’;

12 (C) in subsection (e)(1)(P), strike ‘‘section 39 of the Office of

13 Federal Procurement Policy Act (41 U.S.C. 435)’’ and substitute

14 ‘‘section 1127 of title 41’’; and

15 (D) in subsection (e)(2)(C), strike ‘‘(41 U.S.C. 10b–1)’’ and

16 substitute ‘‘(as added by section 7002(2) of the Omnibus Trade

17 and Competitiveness Act of 1988)’’.

18 (20) In section 2343, strike ‘‘section 3741 of the Revised Statutes

19 (41 U.S.C. 22)’’ and substitute ‘‘section 6306 of title 41’’.

20 (21) In section 2375(b), strike ‘‘section 34 of the Office of Federal

21 Procurement Policy Act (41 U.S.C. 430)’’ and substitute ‘‘section 1906

22 of title 41’’.

23 (22) In section 2376(1), strike ‘‘section 4 of the Office of Federal

24 Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘chapter 1

25 of title 41’’.

26 (23) In section 2384—

27 (A) in subsection (b)(2), strike ‘‘section 4(12) of the Office of

28 Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and sub29 stitute ‘‘section 103 of title 41)’’; and

30 (B) in subsection (b)(3), strike ‘‘section 4(11) of the Office of

31 Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and sub32 stitute ‘‘section 134 of title 41)’’.

33 (24) In section 2393(d)—

34 (A) strike ‘‘section 4(11) of the Office of Federal Procurement

35 Policy Act (41 U.S.C. 403(11)))’’ and substitute ‘‘section 134 of

36 title 41)’’; and

37 (B) strike ‘‘section 4(12) of the Office of Federal Procurement

38 Policy Act (41 U.S.C. 403(12)))’’ and substitute ‘‘section 103 of

39 title 41)’’.

40 (25) In section 2402—

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1 (A) in subsection (c), strike ‘‘section 4(11) of the Office of Fed2 eral Procurement Policy Act (41 U.S.C. 403(11)))’’ and substitute

3 ‘‘section 134 of title 41)’’; and

4 (B) in subsection (d)(2), strike ‘‘section 4(12) of the Office of

5 Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and sub6 stitute ‘‘section 103 of title 41’’.

7 (26) In section 2408—

8 (A) in subsection (a)(4)(A), strike ‘‘section 4(11) of the Office

9 of Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and

10 substitute ‘‘section 134 of title 41)’’; and

11 (B) in subsection (a)(4)(B), strike ‘‘section 4(12) of the Office

12 of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and

13 substitute ‘‘section 103 of title 41)’’.

14 (27) In section 2410(c), strike ‘‘section 4(11) of the Office of Fed15 eral Procurement Policy Act’’ and substitute ‘‘section 134 of title 41’’.

16 (28) In section 2410b(c), strike ‘‘section 4(12) of the Office of Fed17 eral Procurement Policy Act (41 U.S.C. 403(12)))’’ and substitute

18 ‘‘section 103 of title 41)’’.

19 (29) In section 2410d—

20 (A) in subsection (b)(2)(A), strike ‘‘section 5(3) of the Javits21 Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute ‘‘section

22 8501(8) of title 41’’;

23 (B) in subsection (b)(2)(B), strike ‘‘handicapped, as defined in

24 section 5(4) of such Act (41 U.S.C. 48b(4))’’ and substitute ‘‘dis25 abled, as defined in section 8501(7) of title 41’’; and

26 (C) in subsection (b)(2)(C), strike ‘‘section 2(c) of such Act (41

27 U.S.C. 47(c))’’ and substitute ‘‘section 8503(c) of title 41’’.

28 (30) In section 2410g(d)(1), strike ‘‘section 4(12) of the Office of

29 Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and substitute

30 ‘‘section 103 of title 41)’’.

31 (31) In section 2410i(b)(1), strike ‘‘section 4(11) of the Office of

32 Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and substitute

33 ‘‘section 134 of title 41)’’.

34 (32) In section 2410m—

35 (A) in subsection (a), before paragraph (1), strike ‘‘the Contract

36 Disputes Act of 1978 (41 U.S.C. 601 et seq.)’’ and substitute

37 ‘‘chapter 69 of title 41’’;

38 (B) in subsection (a)(2), strike ‘‘section 7 of such Act (41

39 U.S.C. 606)’’ and substitute ‘‘section 6904(a) of title 41’’; and

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1 (C) in subsection (b)(1)(A), strike ‘‘section 10(a) of the Con2 tract Disputes Act of 1978 (41 U.S.C. 609(a))’’ and substitute

3 ‘‘section 6904(b) of title 41’’.

4 (33) In section 2457(e), strike ‘‘section 2 of the Buy American Act

5 (41 U.S.C. 10a)’’ and substitute ‘‘section 8302 of title 41’’.

6 (34) In section 2461(e)(1), strike ‘‘section 2 of the Javits-Wagner7 O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 8503 of title 41’’.

8 (35) In section 2482(b)(1), strike ‘‘section 4(6) of the Office of Fed9 eral Procurement Policy Act (41 U.S.C. 403(6))’’ and substitute ‘‘sec10 tion 107 of title 41’’.

11 (36) In the chapter analysis for subchapter V of chapter 148, in the

12 item for section 2533, strike ‘‘the Buy American Act’’ and substitute

13 ‘‘chapter 83 of title 41’’.

14 (37) In section 2533—

15 (A) in the section catchline, strike ‘‘the Buy American

16 Act’’ and substitute ‘‘chapter 83 of title 41’’; and

17 (B) in subsection (a), strike ‘‘section 2 of the Buy American Act

18 (41 U.S.C. 10a)’’ and substitute ‘‘section 8302 of title 41’’.

19 (38) In section 2533a(i), strike ‘‘section 34 of the Office of Federal

20 Procurement Policy Act (41 U.S.C. 430)’’ and substitute ‘‘section 1906

21 of title 41’’.

22 (39) In section 2534(g)(2), strike ‘‘section 33 of the Office of Fed23 eral Procurement Policy Act (41 U.S.C. 429)’’ and substitute ‘‘section

24 1905 of title 41’’.

25 (40) In section 2562(a)(1), strike ‘‘title III of the Federal Property

26 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

27 substitute ‘‘part C of subtitle I of title 41’’.

28 (41) In section 2576(a), strike ‘‘title III of the Federal Property and

29 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub30 stitute ‘‘part C of subtitle I of title 41’’.

31 (42) In section 2636(b)(3), strike ‘‘section 4(11) of the Office of

32 Federal Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute

33 ‘‘section 134 of title 41’’.

34 (43) In section 2667(f)(1), strike ‘‘Notwithstanding subsection (a)(3)

35 or subtitle I of title 40 and title III of the Federal Property and Ad36 ministrative Services Act of 1949 (to the extent subtitle I and title III

37 are inconsistent with this subsection)’’ and substitute ‘‘Notwithstanding

38 subtitle I of title 40 and part C of subtitle I of title 41 (to the extent

39 those provisions are inconsistent with this subsection) or subsection

40 (a)(2) of this section’’.

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1 (44) In section 2676(a), strike ‘‘title III of the Federal Property and

2 Administrative Services Act of 1949, as amended (41 U.S.C. 251 et

3 seq.)’’ and substitute ‘‘part C of subtitle I of title 41’’.

4 (45) In section 2691(b), strike ‘‘title III of the Federal Property and

5 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub6 stitute ‘‘part C of subtitle I of title 41’’.

7 (46) In section 2696(a), strike ‘‘title III of the Federal Property and

8 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub9 stitute ‘‘part C of subtitle I of title 41’’.

10 (47) In section 2701(i)(1), in the heading, strike ‘‘MILLER ACT’’ and

11 substitute ‘‘SECTIONS 3131 AND 3133 OF TITLE 40’’.

12 (48) In section 2836(g), strike ‘‘the Contract Disputes Act of 1978

13 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’.

14 (49) In section 2854a(d)(1), strike ‘‘title III of the Federal Property

15 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

16 substitute ‘‘part C of subtitle I of title 41’’.

17 (50) In section 2878(d)(2), strike ‘‘title III of the Federal Property

18 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

19 substitute ‘‘part C of subtitle I of title 41’’.

20 (51) In the chapter analysis for chapter 633, in the item for section

21 7299, strike ‘‘Walsh-Healey Act’’ and substitute ‘‘chapter 65 of title

22 41’’.

23 (52) In section 7299—

24 (A) in the heading, strike ‘‘Walsh-Healey Act’’ and substitute

25 ‘‘chapter 65 of title 41’’; and

26 (B) strike ‘‘the Walsh-Healey Act (41 U.S.C. 35 et seq.)’’ and

27 substitute ‘‘chapter 65 of title 41’’.

28 (53) In section 7305(d)—

29 (A) strike ‘‘title III of the Federal Property and Administrative

30 Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and substitute

31 ‘‘part C of subtitle I of title 41’’; and

32 (B) strike ‘‘under subtitle I of title 40 and such title III’’ and

33 substitute ‘‘under those provisions’’.

34 (54) In section 9444(b)(1), strike ‘‘title III of the Federal Property

35 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

36 substitute ‘‘part C of subtitle I of title 41’’.

37 (55) In section 9781(g), strike ‘‘title III of the Federal Property and

38 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub39 stitute ‘‘part C of subtitle I of title 41’’.

40 (c) TITLE 14.—Title 14, United States Code, is amended as follows:

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1 (1) In section 92(d), strike ‘‘title III of the Federal Property and

2 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub3 stitute ‘‘part C of subtitle I of title 41’’.

4 (2) In section 93(h), strike ‘‘title III of the Federal Property and

5 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub6 stitute ‘‘part C of subtitle I of title 41’’.

7 (3) In section 641(a), strike ‘‘title III of the Federal Property and

8 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub9 stitute ‘‘part C of subtitle I of title 41’’.

10 (4) In section 685(c)(1), strike ‘‘title III of the Federal Property and

11 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub12 stitute ‘‘part C of subtitle I of title 41’’.

13 (d) TITLE 18.—Title 18, United States Code, is amended as follows:

14 (1) In section 3672, strike ‘‘section 3709 of the Revised Statutes of

15 the United States’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

16 (2) In section 4124(c), strike ‘‘section 6(d)(4) of the Office of Fed17 eral Procurement Policy Act’’ and substitute ‘‘section 1122(a)(4) of

18 title 41’’.

19 (e) TITLE 23.—Title 23, United States Code, is amended as follows:

20 (1) In section 107(a), strike ‘‘the Act of February 26, 1931, 46 Stat.

21 1421’’ and substitute ‘‘sections 3114 to 3116 and 3118 of title 40’’.

22 (2) In section 140—

23 (A) in subsection (b), strike ‘‘section 3709 of the Revised Stat24 utes, as amended (41 U.S.C. 5),’’ and substitute ‘‘section 6101(b)

25 to (d) of title 41’’; and

26 (B) in subsection (c)—

27 (i) strike ‘‘section 3709 of the Revised Statutes, as amend28 ed (41 U.S.C. 5),’’ and substitute ‘‘section 6101(b) to (d) of

29 title 41’’; and

30 (ii) strike ‘‘section 302(e) of the Federal Property and Ad31 ministrative Services Act of 1949 (41 U.S.C. 252(e))’’ and

32 substitute ‘‘section 3106 of title 41’’.

33 (3) In section 210(e), strike ‘‘the Act of February 26, 1931; 46 Stat.

34 1421’’ and substitute ‘‘sections 3114 to 3116 and 3118 of title 40’’.

35 (4) In section 502(b)(5), strike ‘‘Section 3709 of the Revised Stat36 utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of title 41’’.

37 (f) THE INTERNAL REVENUE CODE OF 1986.—Section 7608(c)(1) of the

38 Internal Revenue Code of 1986 (26 U.S.C. 7608(c)(1)) is amended—

39 (1) in subparagraph (A)(i)(II), by striking ‘‘sections 11(a) and 22’’

40 and substituting ‘‘sections 6301(a) and (b)(1)–(3) and 6306’’;

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1 (2) in subparagraph (A)(i)(III), by striking ‘‘section 255’’ and sub2 stituting ‘‘chapter 45’’; and

3 (3) in subparagraph (A)(i)(V), by striking ‘‘section 254(a) and (c)’’

4 and substituting ‘‘section 3901’’.

5 (g) TITLE 28.—Title 28, United States Code, is amended as follows:

6 (1) In the last sentence of section 524(c)(1), strike ‘‘section 3709

7 of the Revised Statutes of the United States (41 U.S.C. 5), title III

8 of the Federal Property and Administrative Services Act of 1949 (41

9 U.S.C. 251 and following)’’ and substitute ‘‘part C of subtitle I of title

10 41, section 6101(b) to (d) of title 41’’.

11 (2) In section 604(a)(10)(C), strike ‘‘section 3709 of the Revised

12 Statutes of the United States (41 U.S.C. 5)’’ and substitute ‘‘section

13 6101(b) to (d) of title 41’’.

14 (3) In section 624(3), strike ‘‘section 3709 of the Revised Statutes,

15 as amended (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of

16 title 41’’.

17 (4) In section 753(g), strike ‘‘section 3709 of the Revised Statutes

18 of the United States, as amended (41 U.S.C. 5)’’ and substitute ‘‘sec19 tion 6101(b) to (d) of title 41’’.

20 (5) In section 1295—

21 (A) in subsection (a)(10), strike ‘‘section 8(g)(1) of the Con22 tract Disputes Act of 1978 (41 U.S.C. 607(g)(1))’’ and substitute

23 ‘‘section 6907(a)(1) of title 41’’;

24 (B) in subsection (b), strike ‘‘section 10(b) of the Contract Dis25 putes Act of 1978 (41 U.S.C. 609(b))’’ and substitute ‘‘section

26 6907(b) of title 41’’; and

27 (C) in subsection (c), strike ‘‘section 10(b) of the Contract Dis28 putes Act of 1978’’ and substitute ‘‘section 6907(b) of title 41’’.

29 (6) In section 1346(a)(2), strike ‘‘sections 8(g)(1) and 10(a)(1) of

30 the Contract Disputes Act of 1978’’ and substitute ‘‘sections

31 6904(b)(1) and 6907(a)(1) of title 41’’.

32 (7) In the chapter analysis for chapter 91, in item 1499, strike

33 ‘‘Contract Work Hours and Safety Standards Act’’ and substitute

34 ‘‘chapter 37 of title 40’’.

35 (8) In section 1491(a)(2), strike ‘‘section 10(a)(1) of the Contract

36 Disputes Act of 1978’’ and substitute ‘‘section 6904(b)(1) of title 41’’.

37 (9) In section 1499, in the section catchline, strike ‘‘Contract

38 Work Hours and Safety Standards Act’’ and substitute

39 ‘‘chapter 37 of title 40’’.

40 (10) In section 2401(a), strike ‘‘the Contract Disputes Act of 1978’’

41 and substitute ‘‘chapter 69 of title 41’’.

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1 (11) In section 2412—

2 (A) in subsection (d)(2)(E), strike ‘‘the Contract Disputes Act

3 of 1978’’ and substitute ‘‘chapter 69 of title 41’’; and

4 (B) in subsection (d)(3), strike ‘‘the Contract Disputes Act of

5 1978’’ and substitute ‘‘chapter 69 of title 41’’.

6 (12) In section 2414, strike ‘‘the Contract Disputes Act of 1978’’

7 and substitute ‘‘chapter 69 of title 41’’.

8 (13) In section 2517(a), strike ‘‘the Contract Disputes Act of 1978’’

9 and substitute ‘‘chapter 69 of title 41’’.

10 (h) TITLE 31.—Title 31, United States Code, is amended as follows:

11 (1) In section 506, strike ‘‘section 5(a) of the Office of Federal Pro12 curement Policy Act (41 U.S.C. 404(a))’’ and substitute ‘‘section

13 1101(a) of title 41’’.

14 (2) In section 731(i)(7), strike ‘‘section 27 of the Office of Federal

15 Procurement Policy Act (41 U.S.C. 423)’’ and substitute ‘‘chapter 21

16 of title 41’’.

17 (3) In section 781(c)(1), strike ‘‘section 3709 of the Revised Stat18 utes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

19 (4) Section 1344(g)(2)(A) is amended to read as follows:

20 ‘‘(A) a department—

21 ‘‘(i) including independent establishments, other agencies,

22 and wholly owned Government corporations; but

23 ‘‘(ii) not including the Senate, House of Representatives, or

24 Architect of the Capitol, or the officers or employees there25 of;’’.

26 (5) In section 3567, strike ‘‘section 4(1) of the Office of Federal

27 Procurement Policy Act (41 U.S.C. 403(1))’’ and substitute ‘‘section

28 133 of title 41’’.

29 (6) In section 3718(b)(1)(A), strike ‘‘title III of the Federal Prop30 erty and Administrative Services Act of 1949 (41 U.S.C. 251 and fol31 lowing)’’ and substitute ‘‘part C of subtitle I of title 41’’.

32 (7) In section 3902(a), strike ‘‘section 12 of the Contract Disputes

33 Act of 1978 (41 U.S.C. 611)’’ and substitute ‘‘section 6909(a)(1) and

34 (b) of title 41’’.

35 (8) In section 3907—

36 (A) in subsection (a), strike ‘‘section 6 of the Contract Disputes

37 Act of 1978 (41 U.S.C. 605)’’ and substitute ‘‘section 6903 of

38 title 41’’;

39 (B) in subsection (b)(1)(A), strike ‘‘the Contract Disputes Act

40 of 1978 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of

41 title 41’’;

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1 (C) in subsection (b)(2)—

2 (i) strike ‘‘section 12 of the Contract Disputes Act of 1978

3 (41 U.S.C. 611)’’ and substitute ‘‘section 6909(a)(1) and (b)

4 of title 41’’; and

5 (ii) in the second sentence, strike ‘‘section 12’’ and sub6 stitute ‘‘section 6909(a)(1) and (b)’’; and

7 (D) in subsection (c), strike ‘‘the Contract Disputes Act of 1978

8 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’.

9 (9) In section 6202(c)(2), strike ‘‘section 6(d)(5) of the Office of

10 Federal Procurement Policy Act (41 U.S.C. 405(d)(5))’’ and substitute

11 ‘‘section 1122(a)(5) of title 41’’.

12 (10) In section 9703(b)(3), as added by section 638(b)(1) of the Act

13 of October 6, 1992 (Public Law 102–393, 106 Stat. 1779), strike ‘‘sec14 tion 3709 of the Revised Statutes of the United States (41 U.S.C. 5),

15 title III of the Federal Property and Administrative Services Act of

16 1949 (41 U.S.C. 251 et seq.)’’ and substitute ‘‘part C of subtitle I of

17 title 41, section 6101(b) to (d) of title 41’’.

18 (i) TITLE 35.—Title 35, United States Code, is amended as follows:

19 (1) In section 2(b)(4)(A), strike ‘‘title III of the Federal Property

20 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

21 substitute ‘‘part C of subtitle I of title 41’’.

22 (2) In section 203(b), strike ‘‘the Contract Disputes Act (41 U.S.C.

23 § 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’.

24 (j) TITLE 38.—Title 38, United States Code, is amended as follows:

25 (1) In section 1720(c)(2), strike ‘‘section 2(b)(1) of the Service Con26 tract Act of 1965 (41 U.S.C. 351(b)(1))’’ and substitute ‘‘section

27 6704(a) of title 41’’.

28 (2) In section 1966(a), strike ‘‘section 3709 of the Revised Statutes,

29 as amended (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of

30 title 41’’.

31 (3) In section 3720(b), strike ‘‘title III of the Federal Property and

32 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub33 stitute ‘‘part C of subtitle I of title 41’’.

34 (4) In section 7317(f), strike ‘‘section 3709 of the Revised Statutes

35 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

36 (5) In section 7802(f), strike ‘‘section 3709 of the Revised Statutes

37 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

38 (6) In section 8122—

39 (A) in subsection (a)(1), strike ‘‘section 3709 of the Revised

40 Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of

41 title 41’’; and

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1 (B) in subsection (c)—

2 (i) strike ‘‘(41 U.S.C. 252(c))’’; and

3 (ii) strike ‘‘section 304 of that Act (41 U.S.C. 254)’’ and

4 substitute ‘‘sections 3901 and 3905 of title 41’’.

5 (7) In section 8153(a)—

6 (A) in paragraph (3)(B)(ii), strike ‘‘section 22 of the Office of

7 Federal Procurement Policy Act (41 U.S.C. 418b)’’ and substitute

8 ‘‘section 1706 of title 41’’; and

9 (B) in paragraph (3)(D), strike ‘‘section 303(f) of the Federal

10 Property and Administrative Services Act of 1949 (41 U.S.C.

11 253(f))’’ and substitute ‘‘section 3303(d) of title 41’’.

12 (8) In section 8201(e), strike ‘‘section 3709 of the Revised Statutes

13 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

14 (k) TITLE 39.—Section 410(b) of title 39, United States Code, is amend15 ed by striking paragraph (5) and substituting—

16 ‘‘(5) chapters 65 and 67 of title 41;’’.

17 (l) TITLE 40.—Title 40, United States Code, is amended as follows:

18 (1) In the chapter analysis for chapter 1, in item 111, strike ‘‘Fed19 eral Property and Administrative Services Act of 1949’’ and substitute

20 ‘‘part C of subtitle I of title 41’’.

21 (2) In section 102, before paragraph (1), strike ‘‘title III of the Fed22 eral Property and Administrative Services Act of 1949 (41 U.S.C. 251

23 et seq.)’’ and substitute ‘‘part C of subtitle I of title 41’’.

24 (3) In section 111—

25 (A) in the section catchline, strike ‘‘Federal Property and

26 Administrative Services Act of 1949’’ and substitute

27 ‘‘part C of subtitle I of title 41’’; and

28 (B) before paragraph (1), strike ‘‘title III of the Federal Prop29 erty and Administrative Services Act of 1949 (41 U.S.C. 251 et

30 seq.)’’ and substitute ‘‘part C of subtitle I of title 41’’.

31 (4) In section 113(b)—

32 (A) in the heading, strike ‘‘THE OFFICE OF FEDERAL PRO33 CUREMENT POLICY ACT’’ and substitute ‘‘PART B OF SUBTITLE

34 I OF TITLE 41’’; and

35 (B) strike ‘‘the Office of Federal Procurement Policy Act (41

36 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of subtitle I of title

37 41’’.

38 (5) In section 311—

39 (A) in subsection (a), strike ‘‘title III of the Federal Property

40 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’

41 and substitute ‘‘part C of subtitle I of title 41’’; and

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1 (B) in subsection (b), strike ‘‘title III of the Federal Property

2 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’

3 and substitute ‘‘part C of subtitle I of title 41’’.

4 (6) In section 501(b)(2)(B), strike ‘‘the Office of Federal Procure5 ment Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of

6 subtitle I of title 41’’.

7 (7) In section 502—

8 (A) in subsection (b)(1)(A)(i), strike ‘‘section 5(3) of the Javits9 Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute ‘‘section

10 8501(8) of title 41’’;

11 (B) in subsection (b)(1)(A)(ii), strike ‘‘handicapped (as defined

12 in section 5(4) of the Javits-Wagner-O’Day Act (41 U.S.C.

13 48b(4)))’’ and substitute ‘‘disabled (as defined in section 8501(7)

14 of title 41)’’;

15 (C) in subsection (b)(1)(B), strike ‘‘the Javits-Wagner-O’Day

16 Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title

17 41’’; and

18 (D) in subsection (b)(2), strike ‘‘section 2 of the Javits-Wagner19 O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 8503 of title

20 41’’.

21 (8) In section 503(b)—

22 (A) in paragraph (1), strike ‘‘the Office of Federal Procurement

23 Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of sub24 title I of title 41’’; and

25 (B) in paragraph (3)—

26 (i) in the heading, strike ‘‘SECTION 3709 OF REVISED STAT27 UTES’’ and substitute ‘‘SECTION 6101(b) TO (d) OF TITLE 41’’;

28 and

29 (ii) strike ‘‘Section 3709 of the Revised Statutes (41

30 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of title

31 41’’.

32 (9) In section 506(a)(1)(D), strike ‘‘the Office of Federal Procure33 ment Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of

34 subtitle I of title 41’’.

35 (10) In section 545(f), strike ‘‘Section 3709 of the Revised Statutes

36 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’.

37 (11) In section 593(a)(2), strike ‘‘the Javits-Wagner-O’Day Act (41

38 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title 41’’.

39 (12) In section 1305, strike ‘‘title III of the Federal Property and

40 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub41 stitute ‘‘part C of subtitle I of title 41’’.

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1 (13) In section 1308, strike ‘‘title III of the Federal Property and

2 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub3 stitute ‘‘part C of subtitle I of title 41’’.

4 (14) In section 3148, strike ‘‘section 3709 of the Revised Statutes

5 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

6 (15) In section 3304(d)(2), strike ‘‘title III of the Federal Property

7 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and

8 substitute ‘‘part C of subtitle I of title 41’’.

9 (16) In section 3305(a)—

10 (A) in paragraph (1), strike ‘‘title III of the Federal Property

11 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’

12 and substitute ‘‘part C of subtitle I of title 41’’; and

13 (B) in paragraph (2), strike ‘‘title III of the Federal Property

14 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’

15 and substitute ‘‘part C of subtitle I of title 41’’.

16 (17) In section 3308(a), strike ‘‘section 3709 of the Revised Statutes

17 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

18 (18) In section 3310(2), strike ‘‘section 303 of the Federal Property

19 and Administrative Services Act of 1949 (41 U.S.C. 253)’’ and sub20 stitute ‘‘sections 3105 and 3301 to 3304 of title 41’’.

21 (19) In section 3701(b)(3)(A)(ii), strike ‘‘the Walsh-Healey Act (41

22 U.S.C. 35 et seq.)’’ and substitute ‘‘chapter 65 of title 41’’.

23 (20) In section 3704(b)(1), strike ‘‘sections 4 and 5 of the Walsh24 Healey Act (41 U.S.C. 38, 39)’’ and substitute ‘‘sections 6506 and

25 6507 of title 41’’.

26 (21) In section 3707, strike ‘‘section 4 of the Office of Federal Pro27 curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 103 of

28 title 41’’.

29 (22) In section 6111(b)(2)(D), strike ‘‘section 3709 of the Revised

30 Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title

31 41’’.

32 (23) In section 8711(d), strike ‘‘section 3709 of the Revised Statutes

33 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title 41’’.

34 (24) In section 11101—

35 (A) in paragraph (1), strike ‘‘section 4 of the Office of Federal

36 Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section

37 103 of title 41’’; and

38 (B) in paragraph (2), strike ‘‘section 4 of the Act (41 U.S.C.

39 403)’’ and substitute ‘‘section 133 of title 41’’.

40 (m) TITLE 44.—Title 44, United States Code, is amended as follows:

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1 (1) In the chapter analysis for chapter 3, in the item for section 311,

2 strike ‘‘the Federal Property and Administrative Services Act’’ and

3 substitute ‘‘subtitle I of title 40 and part C of subtitle I of title 41’’.

4 (2) In section 311—

5 (A) in the section catchline, strike ‘‘the Federal Property

6 and Administrative Services Act’’ and substitute ‘‘sub7 title I of title 40 and part C of subtitle I of title 41’’;

8 (B) in subsection (a), strike ‘‘title III of the Federal Property

9 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’

10 and substitute ‘‘part C of subtitle I of title 41’’; and

11 (C) in subsection (c), strike ‘‘section 3709 of the Revised Stat12 utes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title

13 41’’.

14 (n) TITLE 49.—Title 49, United States Code, is amended as follows:

15 (1) In section 103(e), strike ‘‘title III of the Federal Property and

16 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub17 stitute ‘‘part C of subtitle I of title 41’’.

18 (2) In section 1113(b)(1)(B) strike ‘‘section 3709 of the Revised

19 Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) of title

20 41’’.

21 (3) In section 5334(j)(2), strike ‘‘Section 3709 of the Revised Stat22 utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of title 41’’.

23 (4) In section 10721, strike ‘‘Section 3709 of the Revised Statutes

24 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of title 41’’.

25 (5) In section 13712, strike ‘‘Section 3709 of the Revised Statutes

26 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of title 41’’.

27 (6) In section 15504, strike ‘‘Section 3709 of the Revised Statutes

28 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of title 41’’.

29 (7) In section 40110—

30 (A) in subsection (d)(2)(A), strike ‘‘Title III of the Federal

31 Property and Administrative Services Act of 1949 (41 U.S.C.

32 252–266)’’ and substitute ‘‘Part C of subtitle I of title 41’’;

33 (B) in subsection (d)(2)(B), strike ‘‘The Office of Federal Pro34 curement Policy Act (41 U.S.C. 401 et seq.)’’ and substitute

35 ‘‘Part B of subtitle I of title 41’’;

36 (C) in subsection (d)(2)(C), strike ‘‘, except for section 315 (41

37 U.S.C. 265). For the purpose of applying section 315 of that Act

38 to the system,’’ and substitute ‘‘. However, section 4705 of title

39 41 shall apply to the new acquisition management system devel40 oped and implemented pursuant to paragraph (1). For the purpose

41 of applying section 4705 of title 41 to the system,’’; and

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1 (D) in subsection (d)(3)—

2 (i) in the heading, strike ‘‘THE OFFICE OF FEDERAL PRO3 CUREMENT POLICY ACT’’ and substitute ‘‘PART B OF SUB4 TITLE I OF TITLE 41’’;

5 (ii) before subparagraph (A), strike ‘‘section 27 of the Of6 fice of Federal Procurement Policy Act (41 U.S.C. 423)’’ and

7 substitute ‘‘chapter 21 of title 41’’; and

8 (iii) in subparagraph (A), strike ‘‘Subsections (f) and (g)’’

9 and substitute ‘‘Sections 2101 and 2106 of title 41’’.

10 (8) In section 40118(f)(2), strike ‘‘section 4(12) of the Office of

11 Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute

12 ‘‘section 103 of title 41’’.

13 (9) In section 47305(d), strike ‘‘Section 3709 of the Revised Stat14 utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of title 41’’.

15 SEC. 6. TECHNICAL AMENDMENTS.

16 (a) SECTIONS 6901, 6905, 6907, AND 6908.—Effective January 6, 2007,

17 or the date of enactment of this Act, whichever is later, title 41, United

18 States Code, is amended as follows:

19 (1) Section 6901 is amended to read as follows:

20 ‘‘§ 6901. Definitions

21 ‘‘In this chapter:

22 ‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the Admin23 istrator for Federal Procurement Policy appointed pursuant to section

24 1102 of this title.

25 ‘‘(2) AGENCY BOARD OR AGENCY BOARD OF CONTRACT APPEALS.—

26 The term ‘agency board’ or ‘agency board of contract appeals’ means—

27 ‘‘(A) the Armed Services Board;

28 ‘‘(B) the Civilian Board;

29 ‘‘(C) the board of contract appeals of the Tennessee Valley Au30 thority; or

31 ‘‘(D) the Postal Service Contract Board of Appeals established

32 under section 6905(d)(1) of this title.

33 ‘‘(3) AGENCY HEAD.—The term ‘agency head’ means the head and

34 any assistant head of an executive agency. The term may include the

35 chief official of a principal division of an executive agency if the head

36 of the executive agency so designates that chief official.

37 ‘‘(4) ARMED SERVICES BOARD.—The term ‘Armed Services Board’

38 means the Armed Services Board of Contract Appeals established

39 under section 6905(a)(1) of this title;

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1 ‘‘(5) CIVILIAN BOARD.—The term ‘Civilian Board’ means the Civil2 ian Board of Contract Appeals established under section 6905(b)(1) of

3 this title.

4 ‘‘(6) CONTRACTING OFFICER.—The term ‘contracting officer’—

5 ‘‘(A) means an individual who, by appointment in accordance

6 with applicable regulations, has the authority to make and admin7 ister contracts and to make determinations and findings with re8 spect to contracts; and

9 ‘‘(B) includes an authorized representative of the contracting of10 ficer, acting within the limits of the representative’s authority.

11 ‘‘(7) CONTRACTOR.—The term ‘contractor’ means a party to a Fed12 eral Government contract other than the Federal Government.

13 ‘‘(8) EXECUTIVE AGENCY.—The term ‘executive agency’ means—

14 ‘‘(A) an executive department as defined in section 101 of title

15 5;

16 ‘‘(B) a military department as defined in section 102 of title 5;

17 ‘‘(C) an independent establishment as defined in section 104 of

18 title 5, except that the term does not include the Government Ac19 countability Office; and

20 ‘‘(D) a wholly owned Government corporation as defined in sec21 tion 9101(3) of title 31.

22 ‘‘(9) MISREPRESENTATION OF FACT.—The term ‘misrepresentation

23 of fact’ means a false statement of substantive fact, or conduct that

24 leads to a belief of a substantive fact material to proper understanding

25 of the matter in hand, made with intent to deceive or mislead.’’.

26 (2) Section 6905 is amended to read as follows:

27 § ‘‘6905. Agency boards

28 ‘‘(a) ARMED SERVICES BOARD.—

29 ‘‘(1) ESTABLISHMENT.—An Armed Services Board of Contract Ap30 peals may be established within the Department of Defense when the

31 Secretary of Defense, after consultation with the Administrator, deter32 mines from a workload study that the volume of contract claims justi33 fies the establishment of a full-time agency board of at least 3 members

34 who shall have no other inconsistent duties. Workload studies will be

35 updated at least once every 3 years and submitted to the Adminis36 trator.

37 ‘‘(2) APPOINTMENT OF MEMBERS AND COMPENSATION.—Members of

38 the Armed Services Board shall be selected and appointed in the same

39 manner as administrative law judges appointed pursuant to section

40 3105 of title 5, with an additional requirement that members must

41 have had at least 5 years of experience in public contract law. The Secjcorcoran on PRODPC62 with HEARING


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1 retary of Defense shall designate the chairman and vice chairman of

2 the Armed Services Board from among the appointed members. Com3 pensation for the chairman, vice chairman, and other members shall be

4 determined under section 5372a of title 5.

5 ‘‘(b) CIVILIAN BOARD.—

6 ‘‘(1) ESTABLISHMENT.—There is established in the General Services

7 Administration the Civilian Board of Contract Appeals.

8 ‘‘(2) MEMBERSHIP.—

9 ‘‘(A) ELIGIBILITY.—The Civilian Board consists of members ap10 pointed by the Administrator of General Services (in consultation

11 with the Administrator) from a register of applicants maintained

12 by the Administrator of General Services, in accordance with rules

13 issued by the Administrator of General Services (in consultation

14 with the Administrator) for establishing and maintaining a reg15 ister of eligible applicants and selecting Civilian Board members.

16 The Administrator of General Services shall appoint a member

17 without regard to political affiliation and solely on the basis of the

18 professional qualifications required to perform the duties and re19 sponsibilities of a Civilian Board member.

20 ‘‘(B) APPOINTMENT OF MEMBERS AND COMPENSATION.—Mem21 bers of the Civilian Board shall be selected and appointed to serve

22 in the same manner as administrative law judges appointed pursu23 ant to section 3105 of title 5, with an additional requirement that

24 members must have had at least 5 years experience in public con25 tract law. Compensation for the members shall be determined

26 under section 5372a of title 5.

27 ‘‘(C) INDIVIDUALS WHO SHALL SERVE AS BOARD MEMBERS.—

28 Notwithstanding subparagraph (B), any full-time member of an

29 agency board of contract appeals, other than the Armed Services

30 Board, the Postal Service Board of Contract Appeals, and the

31 board of contract appeals of the Tennessee Valley Authority, serv32 ing in that capacity on January 5, 2007, shall serve as Civilian

33 Board members.

34 ‘‘(3) REMOVAL.—Members of the Civilian Board are subject to re35 moval in the same manner as administrative law judges, as provided

36 in section 7521 of title 5.

37 ‘‘(4) FUNCTIONS.—

38 ‘‘(A) IN GENERAL.—The Civilian Board has jurisdiction as pro39 vided by subsection (e)(1)(B).

40 ‘‘(B) ADDITIONAL JURISDICTION.—With the concurrence of the

41 Federal agencies affected, the Civilian Board may assume—

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1 ‘‘(i) jurisdiction over any additional category of laws or dis2 putes over which an agency board of contract appeals estab3 lished pursuant to this section or section 8 of the Contract

4 Disputes Act exercised jurisdiction before January 6, 2007;

5 and

6 ‘‘(ii) any other function the agency board performed before

7 January 6, 2007, on behalf of such agencies.

8 ‘‘(c) TENNESSEE VALLEY AUTHORITY BOARD.—

9 ‘‘(1) ESTABLISHMENT.—The Board of Directors of the Tennessee

10 Valley Authority may establish a board of contract appeals of the Ten11 nessee Valley Authority of an indeterminate number of members.

12 ‘‘(2) APPOINTMENT OF MEMBERS AND COMPENSATION.—The Board

13 of Directors of the Tennessee Valley Authority shall establish criteria

14 for the appointment of members to the agency board established under

15 paragraph (1), and shall designate a chairman of the agency board.

16 The chairman and other members of the agency board shall receive

17 compensation, at the daily equivalent of the rates determined under

18 section 5372a of title 5, for each day they are engaged in the actual

19 performance of their duties as members of the agency board.

20 ‘‘(d) POSTAL SERVICE BOARD.—

21 ‘‘(1) ESTABLISHMENT.—There is established an agency board of

22 contract appeals known as the Postal Service Board of Contract Ap23 peals.

24 ‘‘(2) APPOINTMENT AND SERVICE OF MEMBERS.—The Postal Service

25 Board of Contract Appeals consists of judges appointed by the Post26 master General. The judges shall meet the qualifications of and serve

27 in the same manner as members of the Civilian Board.

28 ‘‘(3) APPLICATION.—This chapter applies to contract disputes before

29 the Postal Service Board of Contract Appeals in the same manner as

30 it applies to contract disputes before the Civilian Board.

31 ‘‘(e) JURISDICTION.—

32 ‘‘(1) IN GENERAL.—

33 ‘‘(A) ARMED SERVICES BOARD.—The Armed Services Board has

34 jurisdiction to decide any appeal from a decision of a contracting

35 officer of the Department of Defense, the Department of the

36 Army, the Department of the Navy, the Department of the Air

37 Force, or the National Aeronautics and Space Administration rel38 ative to a contract made by that department or agency.

39 ‘‘(B) CIVILIAN BOARD.—The Civilian Board has jurisdiction to

40 decide any appeal from a decision of a contracting officer of any

41 executive agency (other than the Department of Defense, the Dejcorcoran on PRODPC62 with HEARING


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1 partment of the Army, the Department of the Navy, the Depart2 ment of the Air Force, the National Aeronautics and Space Ad3 ministration, the United States Postal Service, the Postal Rate

4 Commission, or the Tennessee Valley Authority) relative to a con5 tract made by that agency.

6 ‘‘(C) POSTAL SERVICE BOARD.–The Postal Service Board of

7 Contract Appeals has jurisdiction to decide any appeal from a de8 cision of a contracting officer of the United States Postal Service

9 or the Postal Rate Commission relative to a contract made by ei10 ther agency.

11 ‘‘(D) OTHER AGENCY BOARDS.—Each other agency board has

12 jurisdiction to decide any appeal from a decision of a contracting

13 officer relative to a contract made by its agency.

14 ‘‘(2) RELIEF.—In exercising this jurisdiction, an agency board may

15 grant any relief that would be available to a litigant asserting a con16 tract claim in the United States Court of Federal Claims.

17 ‘‘(f) SUBPOENA, DISCOVERY, AND DEPOSITION.—A member of an agency

18 board of contract appeals may administer oaths to witnesses, authorize

19 depositions and discovery proceedings, and require by subpoena the attend20 ance of witnesses, and production of books and papers, for the taking of

21 testimony or evidence by deposition or in the hearing of an appeal by the

22 agency board. In case of contumacy or refusal to obey a subpoena by a per23 son who resides, is found, or transacts business within the jurisdiction of

24 a United States district court, the court, upon application of the agency

25 board through the Attorney General, or upon application by the board of

26 contract appeals of the Tennessee Valley Authority, shall have jurisdiction

27 to issue the person an order requiring the person to appear before the agen28 cy board or a member of the agency board, to produce evidence or to give

29 testimony, or both. Any failure of the person to obey the order of the court

30 may be punished by the court as contempt of court.

31 ‘‘(g) DECISIONS.—An agency board shall—

32 ‘‘(1) to the fullest extent practicable provide informal, expeditious,

33 and inexpensive resolution of disputes;

34 ‘‘(2) issue a decision in writing or take other appropriate action on

35 each appeal submitted; and

36 ‘‘(3) mail or otherwise furnish a copy of the decision to the con37 tractor and the contracting officer.’’.

38 (3) In section 6907(a)(2) before subparagraph (A), strike ‘‘agency

39 board’’ and substitute ‘‘board of contract appeals’’.

40 (4) In section 6908(d)(2), strike ‘‘agency board’’ and substitute

41 ‘‘board of contract appeals’’.

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1 (b) CONTINGENT AMENDMENTS.—

2 (1) IF ENACTED BEFORE JANUARY 6, 2007.—If this Act is enacted

3 before January 6, 2007, section 847 of National Defense Authorization

4 Act for Fiscal Year 2006 (Public Law 109–163, 119 Stat. 3391) is

5 amended as follows:

6 (A) Subsection (a) is repealed.

7 (B) Subsection (f)(1) is amended by—

8 (i) striking ‘‘ ‘of 1978’ ’’ and inserting ‘‘ ‘of title 41’ ’’; and

9 (ii) striking ‘‘section 42 of the Office of Federal Procure10 ment Policy Act’’ and inserting ‘‘section 6905(b)(2) of title

11 41’’.

12 (2) IF ENACTED ON OR AFTER JANUARY 6, 2007.—If this Act is en13 acted on or after January 6, 2007—

14 (A) section 5372a(a)(1) of title 5, United States Code, is

15 amended by striking ‘‘section 42 of the Office of Federal Procure16 ment Policy Act’’ and inserting ‘‘section 6905(b)(2) of title 41’’;

17 and

18 (B) section 42 of the Office of Federal Procurement Policy Act

19 (41 U.S.C. 438) is repealed.

20 SEC. 7. TRANSITIONAL AND SAVINGS PROVISIONS.

21 (a) CUTOFF DATE.—This Act replaces certain provisions of law enacted

22 on or before March 31, 2006. If a law enacted after that date amends or

23 repeals a provision replaced by this Act, that law is deemed to amend or

24 repeal, as the case may be, the corresponding provision enacted by this Act.

25 If a law enacted after that date is otherwise inconsistent with this Act, it

26 supersedes this Act to the extent of the inconsistency.

27 (b) ORIGINAL DATE OF ENACTMENT UNCHANGED.—For purposes of de28 termining whether one provision of law supersedes another based on enact29 ment later in time, the date of enactment of a provision enacted by this Act

30 is deemed to be the date of enactment of the provision it replaced.

31 (c) REFERENCES TO PROVISIONS REPLACED.—A reference to a provision

32 of law replaced by this Act, including a reference in a regulation, order, or

33 other law, is deemed to refer to the corresponding provision enacted by this

34 Act.

35 (d) REGULATIONS, ORDERS, AND OTHER ADMINISTRATIVE ACTIONS.—A

36 regulation, order, or other administrative action in effect under a provision

37 of law replaced by this Act continues in effect under the corresponding pro38 vision enacted by this Act.

39 (e) ACTIONS TAKEN AND OFFENSES COMMITTED.—An action taken or

40 an offense committed under a provision of law replaced by this Act is

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1 deemed to have been taken or committed under the corresponding provision

2 enacted by this Act.

3 SEC. 8. REPEALS.

4 (a) INFERENCE OF REPEAL.—The repeal of a law by this Act may not

5 be construed as a legislative inference that the provision was or was not in

6 effect before its repeal.

7 (b) REPEALER SCHEDULE.—The laws specified in the following schedule

8 are repealed, except for rights and duties that matured, penalties that were

9 incurred, and proceedings that were begun before the date of enactment of

10 this Act.

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Schedule of Laws Repealed

Statutes at Large

Date Chapter or Public Law Section

Statutes at Large U.S. Code (title 41 unless otherwise specified)

Volume Page Existing Proposed

1875

Mar. 3 ...................... 133 .................................... 2 ...................................................................................................................................... 18 455 ......................................... 10 ........................

1884

July 7 ...................... 332 .................................... (words after ‘‘fifty five thousand dollars’’ in 3d par. under heading ‘‘Miscellaneous

Objects Under the Treasury Department’’).

23 204 ......................................... 24 6308

1920

June 5 ..................... 240 .................................... (last par. under heading ‘‘Purchase of Articles Manufactured at Government Arsenals’’). 41 975 ......................................... 23 6307

1921

June 30 ................... 33 ...................................... 1 (last proviso on p. 78) ................................................................................................. 42 78 ........................................... 11a 6302

1922

July 1 ...................... 259 .................................... (1st proviso on p. 812) ................................................................................................... 42 812 ......................................... 23 6307

1926

May 13 .................... 294 .................................... (4th complete par. (related to R.S. § 3741) on p. 547) ................................................. 44 547 ......................................... 16c ........................

1927

Jan. 12 .................... 27 ...................................... (2d complete par. (related to R.S. § 3741) on p. 936) .................................................. 44 936 ......................................... 16a ........................

1933

Mar. 3 ...................... 212 .................................... title III, § 1 ..................................................................................................................... 47 1520 ....................................... 10c 8301

........................................ title III, § 2 ..................................................................................................................... 47 1520 ....................................... 10a 8302........................................ title III, § 3 ..................................................................................................................... 47 1520 ....................................... 10b 8303........................................ title III, § 4 ..................................................................................................................... ........ ................................................ 10b–1 ........................

June 16 ................... 101 .................................... 5 ...................................................................................................................................... 48 305 ......................................... 24a ........................

1934

Jan. 25 .................... 5 ........................................ (related to R.S. § 3741) .................................................................................................. 48 337 ......................................... 22 6306June 16 ................... 553 .................................... 1–6 .................................................................................................................................. 48 974 ......................................... 28–33 ........................

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1935

Aug. 29 .................... 815 .................................... ......................................................................................................................................... 49 990 ......................................... 34 ........................

1936

June 30 ................... 881 .................................... 1 (matter before subsec. (a) less words related to definition of ‘‘agency of the United

States’’).

49 2036 ....................................... 35 6502

........................................ 1 (matter before subsec. (a) related to definition of ‘‘agency of the United States’’) ... 49 2036 ....................................... 35 6501........................................ 1(a)–(d) .......................................................................................................................... 49 2036 ....................................... 35 6502........................................ 2 ...................................................................................................................................... 49 2037 ....................................... 36 6503........................................ 3 ...................................................................................................................................... 49 2037 ....................................... 37 6504........................................ 4 ...................................................................................................................................... 49 2038 ....................................... 38 6506........................................ 5 ...................................................................................................................................... 49 2038 ....................................... 39 6507........................................ 6 ...................................................................................................................................... 49 2038 ....................................... 40 6508........................................ 7 ...................................................................................................................................... 49 2039 ....................................... 41 6501........................................ 8 ...................................................................................................................................... 49 2039 ....................................... 42 6511........................................ 9 ...................................................................................................................................... 49 2039 ....................................... 43 6505........................................ 10(a) ............................................................................................................................... ........ ................................................ 43a 6509........................................ 10(b) (1st sentence) ....................................................................................................... ........ ................................................ 43a 6507........................................ 10(b) (last sentence), (c) ................................................................................................ ........ ................................................ 43a 6509........................................ 11 .................................................................................................................................... ........ ................................................ 43b 6510........................................ 12 .................................................................................................................................... 49 2039 ....................................... 44 ................................................................ 13 .................................................................................................................................... 49 2039 ....................................... 45 6502

1938

June 25 ................... 697 .................................... 1 ...................................................................................................................................... 52 1196 ....................................... 46 8502

........................................ 2 ...................................................................................................................................... 52 1196 ....................................... 47 8503........................................ 3 ...................................................................................................................................... 52 1196 ....................................... 48 8504........................................ 4 ...................................................................................................................................... 52 1196 ....................................... 48a 8505........................................ 5 ...................................................................................................................................... 52 1196 ....................................... 48b 8501........................................ 6 ...................................................................................................................................... 52 1196 ....................................... 48c 8506........................................ 7 ...................................................................................................................................... ........ ................................................ 46 note ........................

1939

Aug. 4 ...................... 418 .................................... 13 (related to R.S. § 3744) ............................................................................................ 53 1197 ....................................... 16d ........................

1940

June 18 ................... 396 .................................... (last par. (related to R.S. § 3709) under heading ‘‘Botanic Garden’’) .......................... 54 474 ......................................... 6kk ........................

........................................ (last par. (related to R.S. § 3744) under heading ‘‘Botanic Garden’’) .......................... 54 474 ......................................... 16b ........................

June 24 ................... 412 .................................... ......................................................................................................................................... 54 504 ......................................... 6b 6102Oct. 10 .................... 851 .................................... 2(a) ................................................................................................................................. 54 1110 ....................................... 6a 6102

........................................ 2(f) .................................................................................................................................. 54 1110 ....................................... 6a 6102........................................ 2(h) ................................................................................................................................. 54 1110 ....................................... 6a 6102........................................ 2(j) .................................................................................................................................. 54 1110 ....................................... 6a 6102........................................ 3(a) ................................................................................................................................. 54 1111 ....................................... 6b ................................................................ 3(b) ................................................................................................................................. 54 1111 ....................................... 6b ........................

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Date Chapter or Public Law Section

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Volume Page Existing Proposed

1942

June 22 ................... 432 .................................... 1 ...................................................................................................................................... 56 375 ......................................... 49 6309

........................................ 2 ...................................................................................................................................... 56 376 ......................................... 50 6309

July 2 ...................... 472 .................................... (1st complete par. on p. 493) ......................................................................................... 56 493 ......................................... 6 ........................

1944

July 1 ...................... 358 .................................... 1, 2(a) ............................................................................................................................. 58 649 ......................................... 101, 102 ........................

........................................ 3 ...................................................................................................................................... 58 650 ......................................... 103 ................................................................ 4(b)–13(c) ....................................................................................................................... 58 651 ......................................... 104–113 ................................................................ 13(d) ............................................................................................................................... 58 662 ......................................... 113 ................................................................ 13(e)–15 ......................................................................................................................... 58 662 ......................................... 113–115 ................................................................ 17, 18(a) ......................................................................................................................... 58 665 ......................................... 117, 118 ................................................................ 18(c)–(e) ......................................................................................................................... 58 666 ......................................... 118 ................................................................ 19(c) ............................................................................................................................... 58 667 ......................................... 119 ................................................................ 20–25 .............................................................................................................................. 58 668 ......................................... 120–125 ................................................................ 26 .................................................................................................................................... 58 671 ......................................... 101 note ................................................................ 27 .................................................................................................................................... 58 671 ......................................... 101 note ........................

1946

Mar. 8 ...................... 80 ...................................... 1 ...................................................................................................................................... 60 37 ........................................... 51 ........................

........................................ 2 ...................................................................................................................................... 60 37 ........................................... 52 8701........................................ 3 ...................................................................................................................................... 60 37 ........................................... 53 8702........................................ 4 ...................................................................................................................................... 60 37 ........................................... 54 8707........................................ 5 ...................................................................................................................................... 60 37 ........................................... 55 8706........................................ 6 ...................................................................................................................................... 60 37 ........................................... 56 8705........................................ 7 ...................................................................................................................................... 60 37 ........................................... 57 8703........................................ 8 ...................................................................................................................................... 60 37 ........................................... 58 8704

Aug. 2 ...................... 744 .................................... 9(c) ................................................................................................................................. 60 809 ......................................... 5 6101

........................................ 18 .................................................................................................................................... 60 811 ......................................... 5a 6101

1949

June 30 ................... 288 .................................... 301 .................................................................................................................................. 63 393 ......................................... 251 ........................

........................................ 302(a) ............................................................................................................................. 63 393 ......................................... 252 3101........................................ 302(b) ............................................................................................................................. 63 393 ......................................... 252 3104

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........................................ 302(c)(1) ......................................................................................................................... 63 393 ......................................... 252 3106........................................ 302(c)(2) ......................................................................................................................... ........ ................................................ 252 3301........................................ 302A, 302B .................................................................................................................... ........ ................................................ 252a, 252b 3101........................................ 302C ............................................................................................................................... ........ ................................................ 252c 4709........................................ 303(a) ............................................................................................................................. 63 395 ......................................... 253 3301........................................ 303(b) ............................................................................................................................. 63 395 ......................................... 253 3302........................................ 303(c)–(f) ....................................................................................................................... 63 395 ......................................... 253 3303........................................ 303(g) ............................................................................................................................. 63 395 ......................................... 253 3304........................................ 303(h) ............................................................................................................................. ........ ................................................ 253 3301........................................ 303(i) .............................................................................................................................. ........ ................................................ 253 3105........................................ 303A ............................................................................................................................... ........ ................................................ 253a 3305........................................ 303B(a), (b) ................................................................................................................... ........ ................................................ 253b 3701........................................ 303B(c) ........................................................................................................................... ........ ................................................ 253b 3702........................................ 303B(d) .......................................................................................................................... ........ ................................................ 253b 3703........................................ 303B(e) ........................................................................................................................... ........ ................................................ 253b 3704........................................ 303B(f) ........................................................................................................................... ........ ................................................ 253b 3705........................................ 303B(g) .......................................................................................................................... ........ ................................................ 253b 3704, 3705........................................ 303B(h) .......................................................................................................................... ........ ................................................ 253b 3706........................................ 303B(i) ........................................................................................................................... ........ ................................................ 253b 3707........................................ 303B(j) ........................................................................................................................... ........ ................................................ 253b 3307........................................ 303B(k), (l) .................................................................................................................... ........ ................................................ 253b 3708........................................ 303B(m) ......................................................................................................................... ........ ................................................ 253b 4702........................................ 303C ............................................................................................................................... ........ ................................................ 253c 3310........................................ 303D ............................................................................................................................... ........ ................................................ 253d 4703........................................ 303F ............................................................................................................................... ........ ................................................ 253f 3309........................................ 303G ............................................................................................................................... ........ ................................................ 253g 4704........................................ 303H ............................................................................................................................... ........ ................................................ 253h 4103........................................ 303I ................................................................................................................................ ........ ................................................ 253i 4105........................................ 303J ................................................................................................................................ ........ ................................................ 253j 4106........................................ 303K ............................................................................................................................... ........ ................................................ 253k 4101........................................ 303L ............................................................................................................................... ........ ................................................ 253l 3902........................................ 303M ............................................................................................................................... ........ ................................................ 253m 3308........................................ 304(a) ............................................................................................................................. 63 395 ......................................... 254 3901........................................ 304(b) ............................................................................................................................. 63 395 ......................................... 254 3905........................................ 304A(a) ........................................................................................................................... ........ ................................................ 254b 3502........................................ 304A(b) ........................................................................................................................... ........ ................................................ 254b 3503........................................ 304A(c) ........................................................................................................................... ........ ................................................ 254b 3504........................................ 304A(d) .......................................................................................................................... ........ ................................................ 254b 3505........................................ 304A(e) ........................................................................................................................... ........ ................................................ 254b 3506........................................ 304A(f) ........................................................................................................................... ........ ................................................ 254b 3507........................................ 304A(g) ........................................................................................................................... ........ ................................................ 254b 3508........................................ 304A(h) .......................................................................................................................... ........ ................................................ 254b 3501........................................ 304B ............................................................................................................................... ........ ................................................ 254c 3903........................................ 304C ............................................................................................................................... ........ ................................................ 254d 4706........................................ 305(a) ............................................................................................................................. 63 396 ......................................... 255 4501........................................ 305(b) ............................................................................................................................. ........ ................................................ 255 4502

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Statutes at Large U.S. Code (title 41 unless otherwise specified)

Volume Page Existing Proposed

........................................ 305(c) ............................................................................................................................. 63 396 ......................................... 255 4502........................................ 305(d) ............................................................................................................................. 63 396 ......................................... 255 4503........................................ 305(e) ............................................................................................................................. ........ ................................................ 255 4504........................................ 305(f) .............................................................................................................................. ........ ................................................ 255 4505........................................ 305(g) ............................................................................................................................. ........ ................................................ 255 4506........................................ 306(a)–(d) ...................................................................................................................... ........ ................................................ 256 4303........................................ 306(e) ............................................................................................................................. ........ ................................................ 256 4304........................................ 306(f) .............................................................................................................................. ........ ................................................ 256 4305........................................ 306(g) ............................................................................................................................. ........ ................................................ 256 4306........................................ 306(h) ............................................................................................................................. ........ ................................................ 256 4307........................................ 306(i) .............................................................................................................................. ........ ................................................ 256 4308........................................ 306(j) .............................................................................................................................. ........ ................................................ 256 4309........................................ 306(k) ............................................................................................................................. ........ ................................................ 256 4310........................................ 306(l)(1) ......................................................................................................................... ........ ................................................ 256 4301........................................ 306(l)(2) ......................................................................................................................... ........ ................................................ 256 4302........................................ 306(m) ............................................................................................................................ ........ ................................................ 256 4301........................................ 307 .................................................................................................................................. 63 396 ......................................... 257 4701........................................ 309(a) ............................................................................................................................. 63 397 ......................................... 259 151........................................ 309(b) ............................................................................................................................. ........ ................................................ 259 152........................................ 309(c)(1) ......................................................................................................................... ........ ................................................ 259 111........................................ 309(c)(2) ......................................................................................................................... ........ ................................................ 259 112........................................ 309(c)(3) ......................................................................................................................... ........ ................................................ 259 114........................................ 309(c)(4) ......................................................................................................................... ........ ................................................ 259 107........................................ 309(c)(5) ......................................................................................................................... ........ ................................................ 259 113........................................ 309(c)(6) ......................................................................................................................... ........ ................................................ 259 116........................................ 309(c)(7) ......................................................................................................................... ........ ................................................ 259 109........................................ 309(c)(8), (9) .................................................................................................................. ........ ................................................ 259 108........................................ 309(c)(10) ....................................................................................................................... ........ ................................................ 259 115........................................ 309(c)(11) ....................................................................................................................... ........ ................................................ 259 103........................................ 309(c)(12) ....................................................................................................................... ........ ................................................ 259 110........................................ 309(c)(13) ....................................................................................................................... ........ ................................................ 259 102........................................ 309(c)(14) ....................................................................................................................... ........ ................................................ 259 105........................................ 309(d) ............................................................................................................................. ........ ................................................ 259 153........................................ 309(e) ............................................................................................................................. ........ ................................................ 259 106........................................ 310 .................................................................................................................................. 63 397 ......................................... 260 3101

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........................................ 311 .................................................................................................................................. ........ ................................................ 261 3102........................................ 312 .................................................................................................................................. ........ ................................................ 262 4701........................................ 313 .................................................................................................................................. ........ ................................................ 263 3103........................................ 314 .................................................................................................................................. ........ ................................................ 264 3306........................................ 314A (‘‘commercial item’’) ............................................................................................. ........ ................................................ 264a (‘‘commercial

item’’)

103

........................................ 314A (‘‘nondevelopmental item’’) ................................................................................... ........ ................................................ 264a

(‘‘nondevelopmental

item’’)

110

........................................ 314A (‘‘component’’) ...................................................................................................... ........ ................................................ 264a (‘‘component’’) 105........................................ 314A (‘‘commercial component’’) ................................................................................... ........ ................................................ 264a (‘‘commercial

component’’)

102

........................................ 314B ............................................................................................................................... ........ ................................................ 264b 3306........................................ 315 .................................................................................................................................. ........ ................................................ 265 4705........................................ 316 .................................................................................................................................. ........ ................................................ 266 3105

Oct. 29 .................... 787 .................................... 633 .................................................................................................................................. 63 1024 ....................................... 10d 8303

1950

Sept. 5 ..................... 849 .................................... 10(a) ............................................................................................................................... 64 591 ......................................... 256a 4707

1952

July 14 .................... 739 .................................... ......................................................................................................................................... 66 627 ......................................... 113, 113 note ........................

1954

May 11 .................... 199 .................................... 1 ...................................................................................................................................... 68 81 ........................................... 321 ........................

........................................ 2 ...................................................................................................................................... 68 81 ........................................... 322 ........................

1957

July 1 ...................... 85–75 ................................ (last par. on p. 251) ....................................................................................................... 71 251 ......................................... 6a ........................

1961

Aug. 3 ...................... 87–125 .............................. 301 .................................................................................................................................. 75 279 ......................................... 6b ........................

1962

Sept. 5 ..................... 87–638 .............................. ......................................................................................................................................... 76 437 ......................................... 254a 4708

1965

July 27 .................... 89–90 ................................ (2d par. on p. 276) ......................................................................................................... 79 276 ......................................... 6a–1 6102Oct. 22 .................... 89–286 .............................. 1 ...................................................................................................................................... 79 1034 ....................................... 351 note ........................

........................................ 2(a) (words before par. (1) related to applicability) ...................................................... 79 1034 ....................................... 351 6702........................................ 2(a) (words before par. (1) related to required contract terms), (1)–(5) ...................... 79 1034 ....................................... 351 6703........................................ 2(b) ................................................................................................................................. 79 1034 ....................................... 351 6704........................................ 3 ...................................................................................................................................... 79 1035 ....................................... 352 6705........................................ 4 ...................................................................................................................................... 79 1035 ....................................... 353 6707........................................ 5(a) ................................................................................................................................. 79 1035 ....................................... 354 6706........................................ 5(b) ................................................................................................................................. 79 1035 ....................................... 354 6705

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Date Chapter or Public Law Section

Statutes at Large U.S. Code (title 41 unless otherwise specified)

Volume Page Existing Proposed

........................................ 6 ...................................................................................................................................... 79 1035 ....................................... 355 6707........................................ 7 ...................................................................................................................................... 79 1035 ....................................... 356 6702........................................ 8 ...................................................................................................................................... 79 1036 ....................................... 357 6701........................................ 9 ...................................................................................................................................... 79 1036 ....................................... 351 note ................................................................ 10 .................................................................................................................................... ........ ................................................ 358 6707

1974

Aug. 30 .................... 93–400 .............................. 4(1) ................................................................................................................................. 88 797 ......................................... 403 133

........................................ 4(2) ................................................................................................................................. 88 797 ......................................... 403 111........................................ 4(3) ................................................................................................................................. 88 797 ......................................... 403 112........................................ 4(4) ................................................................................................................................. 88 797 ......................................... 403 114........................................ 4(5) ................................................................................................................................. ........ ................................................ 403 132........................................ 4(6) ................................................................................................................................. ........ ................................................ 403 107........................................ 4(7) ................................................................................................................................. ........ ................................................ 403 113........................................ 4(8) ................................................................................................................................. ........ ................................................ 403 116........................................ 4(9) ................................................................................................................................. ........ ................................................ 403 109........................................ 4(10) (‘‘item’’, ‘‘item of supply’’) ................................................................................... ........ ................................................ 403 108........................................ 4(10) (‘‘supplies’’) .......................................................................................................... ........ ................................................ 403 115........................................ 4(11) ............................................................................................................................... ........ ................................................ 403 134........................................ 4(12) ............................................................................................................................... ........ ................................................ 403 103........................................ 4(13) ............................................................................................................................... ........ ................................................ 403 110........................................ 4(14) ............................................................................................................................... ........ ................................................ 403 105........................................ 4(15) ............................................................................................................................... ........ ................................................ 403 102........................................ 4(16) ............................................................................................................................... ........ ................................................ 403 131........................................ 4(17) ............................................................................................................................... ........ ................................................ 403 1301........................................ 5(a) ................................................................................................................................. 88 797 ......................................... 404 1101........................................ 5(b) ................................................................................................................................. 88 797 ......................................... 404 1102........................................ 6(a)–(c) ........................................................................................................................... 88 797 ......................................... 405 1121........................................ 6(d), (e) .......................................................................................................................... 88 797 ......................................... 405 1122........................................ 6(f) .................................................................................................................................. 88 797 ......................................... 405 1121........................................ 6(g) ................................................................................................................................. 88 797 ......................................... 405 1122........................................ 6(h)(1) ............................................................................................................................ 88 797 ......................................... 405 1130........................................ 6(h)(2) ............................................................................................................................ 88 797 ......................................... 405 2304........................................ 6(i) .................................................................................................................................. 88 797 ......................................... 405 1125........................................ 6(j) .................................................................................................................................. ........ ................................................ 405 1126

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........................................ 6(k) ................................................................................................................................. ........ ................................................ 405 1131........................................ 7 ...................................................................................................................................... 88 798 ......................................... 406 1701........................................ 9 ...................................................................................................................................... 88 799 ......................................... 408 1121........................................ 11 .................................................................................................................................... 88 799 ......................................... 410 1101........................................ 12 .................................................................................................................................... 88 799 ......................................... 411 1122........................................ 14(a) ............................................................................................................................... 88 800 ......................................... 412 2306........................................ 14(b) ............................................................................................................................... 88 800 ......................................... 412 2305........................................ 15 .................................................................................................................................... ........ ................................................ 413 1124........................................ 16 .................................................................................................................................... ........ ................................................ 414 1702........................................ 16A(a)–(c) ...................................................................................................................... ........ ................................................ 414b 1311........................................ 16A(d), (e) ...................................................................................................................... ........ ................................................ 414b 1312........................................ 18 .................................................................................................................................... ........ ................................................ 416 1707........................................ 19 .................................................................................................................................... ........ ................................................ 417 1710........................................ 20 .................................................................................................................................... ........ ................................................ 418 1704........................................ 21 .................................................................................................................................... ........ ................................................ 418a 2302........................................ 22 .................................................................................................................................... ........ ................................................ 418b 1706........................................ 23 .................................................................................................................................... ........ ................................................ 419 1708........................................ 25(a), (b) ........................................................................................................................ ........ ................................................ 421 1302........................................ 25(c)–(f) ......................................................................................................................... ........ ................................................ 421 1303........................................ 26(a)–(e) ......................................................................................................................... ........ ................................................ 422 1501........................................ 26(f)–(h)(1) .................................................................................................................... ........ ................................................ 422 1502........................................ 26(h)(2)–(4) .................................................................................................................... ........ ................................................ 422 1503........................................ 26(i) ................................................................................................................................ ........ ................................................ 422 ................................................................ 26(j) ................................................................................................................................ ........ ................................................ 422 1504........................................ 26(k) ............................................................................................................................... ........ ................................................ 422 1505........................................ 26(l) ................................................................................................................................ ........ ................................................ 422 1506........................................ 27(a), (b) ........................................................................................................................ ........ ................................................ 423 2102........................................ 27(c) ............................................................................................................................... ........ ................................................ 423 2103........................................ 27(d) ............................................................................................................................... ........ ................................................ 423 2104........................................ 27(e) ............................................................................................................................... ........ ................................................ 423 2105........................................ 27(f) ................................................................................................................................ ........ ................................................ 423 2101........................................ 27(g) ............................................................................................................................... ........ ................................................ 423 2106........................................ 27(h) ............................................................................................................................... ........ ................................................ 423 2107........................................ 29 .................................................................................................................................... ........ ................................................ 425 1304........................................ 30 .................................................................................................................................... ........ ................................................ 426 2301........................................ 31 .................................................................................................................................... ........ ................................................ 427 1901........................................ 32 .................................................................................................................................... ........ ................................................ 428 1902........................................ 32A ................................................................................................................................. ........ ................................................ 428a 1903........................................ 33 .................................................................................................................................... ........ ................................................ 429 1905........................................ 34 .................................................................................................................................... ........ ................................................ 430 1906........................................ 35(a), (b) ........................................................................................................................ ........ ................................................ 431 1907........................................ 35(c) ............................................................................................................................... ........ ................................................ 431 104........................................ 35A ................................................................................................................................. ........ ................................................ 431a 1908........................................ 36 .................................................................................................................................... ........ ................................................ 432 1709........................................ 37 .................................................................................................................................... ........ ................................................ 433 1703........................................ 38 .................................................................................................................................... ........ ................................................ 434 2307

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Statutes at Large

Date Chapter or Public Law Section

Statutes at Large U.S. Code (title 41 unless otherwise specified)

Volume Page Existing Proposed

........................................ 39 .................................................................................................................................... ........ ................................................ 435 1127........................................ 40 .................................................................................................................................... ........ ................................................ 436 2308........................................ 41 .................................................................................................................................... ........ ................................................ 437 2309

1978

Oct. 24 .................... 95–507 .............................. 222 (1st sentence) .......................................................................................................... 92 1771 ....................................... 405a 1121

........................................ 222 (last sentence) ......................................................................................................... 92 1771 ....................................... 405a 1123

Nov. 1 ...................... 95–563 .............................. 1 ...................................................................................................................................... 92 2383 ....................................... 601 note ........................

........................................ 2 ...................................................................................................................................... 92 2383 ....................................... 601 6901........................................ 3 ...................................................................................................................................... 92 2383 ....................................... 602 6902........................................ 4 ...................................................................................................................................... 92 2384 ....................................... 603 6902........................................ 5 ...................................................................................................................................... 92 2384 ....................................... 604 6903........................................ 6(a) (1st, 2d sentences) .................................................................................................. 92 2384 ....................................... 605 6903........................................ 6(a) (3d, 4th sentences) ................................................................................................. ........ ................................................ 605 6903........................................ 6(a) (5th–last sentences), (b), (c)(1)–(5) ....................................................................... 92 2384 ....................................... 605 6903........................................ 6(c)(6), (7), (d), (e) ........................................................................................................ ........ ................................................ 605 6903........................................ 7 ...................................................................................................................................... 92 2385 ....................................... 606 6904........................................ 8(a)–(e) ........................................................................................................................... 92 2385 ....................................... 607 6905........................................ 8(f) .................................................................................................................................. 92 2386 ....................................... 607 6906........................................ 8(g) ................................................................................................................................. 92 2387 ....................................... 607 6907........................................ 8(h) ................................................................................................................................. 92 2387 ....................................... 607 6905........................................ 8(i) .................................................................................................................................. 92 2387 ....................................... 607 ................................................................ 9 ...................................................................................................................................... 92 2387 ....................................... 608 6906........................................ 10(a) ............................................................................................................................... 92 2388 ....................................... 609 6904........................................ 10(b)–(e) ......................................................................................................................... 92 2388 ....................................... 609 6907........................................ 10(f) ................................................................................................................................ ........ ................................................ 609 6907........................................ 11 .................................................................................................................................... 92 2388 ....................................... 610 6905........................................ 12 .................................................................................................................................... 92 2389 ....................................... 611 6909........................................ 13 .................................................................................................................................... 92 2389 ....................................... 612 6908........................................ 15 .................................................................................................................................... 92 2391 ....................................... 613 ................................................................ 16 .................................................................................................................................... 92 2391 ....................................... 601 note ........................

1984

Oct. 30 .................... 98–577 .............................. 502 .................................................................................................................................. 98 3085 ....................................... 414a 1705

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1988

Oct. 1 ...................... 100–463 ............................ 8141 ................................................................................................................................ 102 2270–47 ................................. 405b 2303Oct. 25 .................... 100–533 ............................ 502 .................................................................................................................................. 102 2697 ....................................... 417a 1711Nov. 18 .................... 100–690 ............................ 5151 ................................................................................................................................ 102 4304 ....................................... 701 note ........................

........................................ 5152 ................................................................................................................................ 102 4304 ....................................... 701 8102........................................ 5153 ................................................................................................................................ 102 4306 ....................................... 702 8103........................................ 5154 ................................................................................................................................ 102 4307 ....................................... 703 8104........................................ 5155 ................................................................................................................................ 102 4307 ....................................... 704 8105........................................ 5156 ................................................................................................................................ 102 4308 ....................................... 705 8106........................................ 5157, 5158 ..................................................................................................................... 102 4308 ....................................... 706, 707 8101........................................ 5160 ................................................................................................................................ 102 4308 ....................................... 701 note ........................

1992

Oct. 29 .................... 102–572 ............................ 907(a)(3) ........................................................................................................................ 106 4518 ....................................... 611 note 6909

1993

Nov. 30 .................... 103–160 ............................ 849(c), (d) ...................................................................................................................... 107 1725 ....................................... 10b–2 8304

1994

Oct. 13 .................... 103–355 ............................ 1054(b) ........................................................................................................................... 108 3265 ....................................... 253h note 4102

........................................ 8002 ................................................................................................................................ 108 3386 ....................................... 264 note 3306

1996

Sept. 23 ................... 104–201 ............................ 827 .................................................................................................................................. 110 2611 ....................................... 10b–3 8305

1997

June 12 ................... 105–18 .............................. 7004 ................................................................................................................................ 111 192 ......................................... 253l–1 3904

1999

Sept. 29 ................... 106–57 .............................. 207 .................................................................................................................................. 113 423 ......................................... 253l–2 3904Oct. 5 ...................... 106–65 .............................. 804 .................................................................................................................................. 113 704 ......................................... 253h note 4104

2000

Dec. 21 .................... 106–554 ............................ 1(a)(2) [title I, § 101] .................................................................................................... 114 2763A–100 ............................ 253l–3 3904

........................................ 1(a)(2) [title I, § 110] .................................................................................................... 114 2763A–108 ............................ 253l–4 3904

2003

Feb. 20 .................... 108–7 ................................ div. H, title I, § 5 ............................................................................................................ 117 350 ......................................... 253l–5 3904

........................................ div. H, title I, § 104 ........................................................................................................ 117 354 ......................................... 6a–3 6102........................................ div. H, title I, § 1002 ...................................................................................................... 117 357 ......................................... 253l–6 3904........................................ div. H, title I, § 1102 ...................................................................................................... 117 370 ......................................... 6a–4 6102........................................ div. H, title I, § 1202 ...................................................................................................... 117 373 ......................................... 253l–7 3904

Aug. 15 .................... 108–72 .............................. 4 ...................................................................................................................................... 117 889 ......................................... 253l–8 3904Sept. 30 ................... 108–87 .............................. 8033 ................................................................................................................................ 117 1079 ....................................... 10b–2 8304Nov. 24 .................... 108–136 ............................ 1412(a) ........................................................................................................................... 117 1664 ....................................... 433 note 1703

........................................ 1413 ................................................................................................................................ 117 1665 ....................................... 433 note 1703

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Statutes at Large U.S. Code (title 41 unless otherwise specified)

Volume Page Existing Proposed

........................................ 1414 ................................................................................................................................ 117 1666 ....................................... 433 note 1128........................................ 1428 ................................................................................................................................ 117 1670 ....................................... 253a note 3305........................................ 1431(b) ........................................................................................................................... 117 1671 ....................................... 405 note 1129........................................ 1432 ................................................................................................................................ 117 1672 ....................................... 264 note 3306........................................ 1441 ................................................................................................................................ 117 1673 ....................................... 428a note 1904

2004

Oct. 28 .................... 108–375 ............................ 807(c) ............................................................................................................................. 118 2011 ....................................... 431a note 1908

2006

Jan. 6 ...................... 109–163 ............................ 847(a) ............................................................................................................................. 119 3391 ....................................... 438 See

§ 6(b)(2)(C) of

bill.

........................................ 847(d)(1) ........................................................................................................................ 119 3393 ....................................... 601 See

§ 6(b)(2)(A) of

bill.

........................................ 847(d)(2)–(4) .................................................................................................................. 119 3393 ....................................... 607 See

§ 6(b)(2)(C) of

bill.

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Chairman SENSENBRENNER. The Chair recognizes himself for 5 

minutes to explain the bill. 

This bill revises and restates certain laws relating to public contracts and enacts those provisions as Title 41 U.S. Code. Ranking 

Member Conyers and I jointly introduced this bill on May 17. The 

bill was prepared by the Office of Law Revision Counsel as part of 

its functions under Section 285(b) of Title 2 U.S. Code, to prepare 

and submit to the Committee on Judiciary one title at a time a 

complete compilation restatement and revision of the general and 

permanent laws of the United States. 

This bill makes no substantive changes to Title 41. It simply removes ambiguities, contradictions and other imperfections in existing law. Ranking Member Conyers and I introduced a similar bill, 

H.R. 4320, in the 108th Congress. Upon introduction of that bill, 

appropriate congressional Committees, government agencies, and 

private organizations with an interest in the bill were given an opportunity to review it and submit comments to the Office of the 

Law Revision Counsel. 

The office studied all of the comments and worked with the interested parties to achieve a satisfactory resolution. All of these 

changes are currently reflected in H.R. 5414. Additionally, upon introduction of the present bill, individuals, agencies, congressional 

Committees and other interested parties were again invited to comment on it, and the Office of the Law Revision Counsel received no 

dissenting views regarding the revisions and consolidation efforts 

contained in the legislation. 

I urge my colleagues to support this bipartisan legislation that 

makes necessary technical and non-substantive changes to existing 

law. 

The Chair yields back his time and recognizes the gentleman 

from Virginia, Mr. Scott. 

Mr. SCOTT. Thank you, Mr. Chairman. 

I would just say on behalf of the Ranking Member, the Ranking 

Member supports the legislation. The legislation is necessary largely because much of the original enactments in the section of the 

code are written in language that is both archaic and difficult to 

understand. There is also a significant amount of redundancy and 

ambiguity in the section. This bill would eliminate those 

redundancies, ambiguities and unnecessarily archaic language. 

The bill is intended to maintain present law, not to make any 

change in existing law, but to conform to the understood policy, intent and purpose of Congress in the original enactments. 

With that, Mr. Chairman, I would hope that we would support 

the legislation, and I yield back the balance of my time. 

Chairman SENSENBRENNER. Without objection, all Members may 

insert opening statements in the record at this point. Are there 

amendments? 

If there are no amendments, a reporting quorum is present. The 

question occurs on the motion to report the bill, H.R. 5414 favorably. 

All in favor will say ‘‘aye.’’

Opposed, ‘‘no.’’

The ayes appear to have it. The ayes have it, and the motion to 

report favorably is agreed to. 


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Without objection, the staff is directed to make any technical or 

conforming changes, and all Members will be given 2 days, as provided by the House rules, to submit additional dissenting, supplemental or minority views. 

[Intervening business.] 

Without objection, the Committee stands adjourned. 

[Whereupon, at 4:02 p.m., the Committee was adjourned.] 

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