I 

108TH CONGRESS 

2D SESSION H. R. 4320

To revise, codify, and enact without substantive change certain general and 

permanent laws, related to public contracts, as title 41, United States 

Code, ‘‘Public Contracts’’. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 10, 2004

Mr. SENSENBRENNER (for himself and Mr. CONYERS) introduced the 

following bill; which was referred to the Committee on the Judiciary 

A BILL

To revise, codify, and enact without substantive change certain general and permanent laws, related 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. TITLE 41, UNITED STATES CODE. 

4 Certain general and permanent laws of the United States, related to pub5 lic contracts, are revised, codified, and enacted as title 41, United States 

6 Code, ‘‘Public Contracts’’, as follows: 

7 TITLE 41—PUBLIC CONTRACTS

Subtitle Sec. 

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

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

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

8 Subtitle I—Federal Procurement Policy 

9 PART A—GENERAL

Chapter Sec. 

1. Definitions ................................................................................................... 101
2

•HR 4320 IH 

1 PART B—ADMINISTRATIVE

11. Office of Federal Procurement Policy .............................................. 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

2 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

3 PART A—GENERAL

4 CHAPTER 1—DEFINITIONS

SUBCHAPTER I—SUBTITLE DEFINITIONS 

Sec. 

101. Acquisition. 

102. Commercial component. 

103. Commercial item. 

104. Component. 

105. Federal Acquisition Regulation. 

106. Full and open competition. 

107. Item and item of supply. 

108. Major system. 

109. Nondevelopmental item. 

110. Procurement. 

111. Procurement system. 

112. Responsible source. 

113. Standards. 

114. Supplies. 

115. Technical data. 

SUBCHAPTER II—PART B DEFINITIONS 

131. Competitive procedures. 

132. Executive agency. 

133. Simplified acquisition threshold.

5 SUBCHAPTER I—SUBTITLE DEFINITIONS 

6 § 101. Acquisition 

7 In this subtitle, the term ‘‘acquisition’’—

8 (1) means the process of acquiring, with appropriated amounts, by 

9 contract for purchase or lease, property or services (including construc10 tion) that support the missions and goals of an executive agency, from 

11 the point at which the requirements of the executive agency are estab12 lished in consultation with the chief acquisition officer of the executive 

13 agency; and 

14 (2) includes—
3

•HR 4320 IH 

1 (A) the process of acquiring property or services that are al2 ready in existence, or that must be created, developed, dem3 onstrated, and evaluated; 

4 (B) the description of requirements to satisfy agency needs; 

5 (C) solicitation and selection of sources; 

6 (D) award of contracts; 

7 (E) contract performance; 

8 (F) contract financing; 

9 (G) management and measurement of contract performance 

10 through final delivery and payment; and 

11 (H) technical and management functions directly related to the 

12 process of fulfilling agency requirements by contract. 

13 § 102. Commercial component 

14 In this subtitle, the term ‘‘commercial component’’ means a component 

15 that is a commercial item. 

16 § 103. Commercial item 

17 In this subtitle, the term ‘‘commercial item’’ means—

18 (1) an item, other than real property, that—

19 (A) is of a type customarily used by the general public or by 

20 nongovernmental entities for purposes other than governmental 

21 purposes; and 

22 (B) has been sold, leased, or licensed, or offered for sale, lease, 

23 or license, to the general public; 

24 (2) an item that—

25 (A) evolved from an item described in clause (1) through ad26 vances in technology or performance; and 

27 (B) is not yet available in the commercial marketplace but will 

28 be available in the commercial marketplace in time to satisfy the 

29 delivery requirements under a Federal Government solicitation; 

30 (3) an item that would satisfy the criteria in clause (1) or (2) were 

31 it not for—

32 (A) modifications of a type customarily available in the commer33 cial marketplace; or 

34 (B) minor modifications made to meet Government require35 ments; 

36 (4) any combination of items meeting the requirements of clause (1), 

37 (2), (3), or (5) that are of a type customarily combined and sold in 

38 combination to the general public;

39 (5) installation services, maintenance services, repair services, train40 ing services, and other services if—
4

•HR 4320 IH 

1 (A) those services are procured for support of an item referred 

2 to in clause (1), (2), (3), or (4), regardless of whether the services 

3 are provided by the same source or at the same time as the item; 

4 and 

5 (B) the source of the services provides similar services contem6 poraneously to the general public under terms and conditions simi7 lar to those offered to the Government; 

8 (6) services offered and sold competitively, in substantial quantities, 

9 in the commercial marketplace based on established catalog or market 

10 prices for specific tasks performed or specific outcomes to be achieved 

11 and under standard commercial terms and conditions; 

12 (7) any item, combination of items, or service referred to in clauses 

13 (1)–(6) even though the item, combination of items, or service is trans14 ferred between or among separate divisions, subsidiaries, or affiliates 

15 of a contractor; or 

16 (8) a nondevelopmental item if the procuring agency determines, in 

17 accordance with conditions in the Federal Acquisition Regulation, that 

18 the item was developed exclusively at private expense and has been sold 

19 in substantial quantities, on a competitive basis, to multiple State and 

20 local governments. 

21 § 104. Component 

22 In this subtitle, the term ‘‘component’’ means an item supplied to the 

23 Federal Government as part of an end item or of another component. 

24 § 105. Federal Acquisition Regulation 

25 In this subtitle, the term ‘‘Federal Acquisition Regulation’’ means the 

26 regulation issued under section 1302(a)(1) of this title. 

27 § 106. Full and open competition 

28 In this subtitle, the term ‘‘full and open competition’’, when used with 

29 respect to a procurement, means that all responsible sources are permitted 

30 to submit sealed bids or competitive proposals on the procurement. 

31 § 107. Item and item of supply 

32 In this subtitle, the terms ‘‘item’’ and ‘‘item of supply’’—

33 (1) mean an individual part, component, subassembly, assembly, or 

34 subsystem integral to a major system, and other property which may 

35 be replaced during the service life of the system, including spare parts 

36 and replenishment spare parts; but 

37 (2) do not include packaging or labeling associated with shipment or 

38 identification of an item. 

39 § 108. Major system 

40 (a) IN GENERAL.—In this subtitle, the term ‘‘major system’’ means a 

41 combination of elements that will function together to produce the capabili-
5

•HR 4320 IH 

1 ties required to fulfill a mission need. These elements may include hardware, 

2 equipment, software, or a combination of hardware, equipment, and soft3 ware, but do not include construction or other improvements to real prop4 erty. 

5 (b) SYSTEM DEEMED TO BE MAJOR SYSTEM.—A system is deemed to 

6 be a major system if—

7 (1) the Department of Defense is responsible for the system and the 

8 total expenditures for research, development, testing, and evaluation for 

9 the system are estimated to exceed $75,000,000 (based on fiscal year 

10 1980 constant dollars) or the eventual total expenditure for procure11 ment of more than $300,000,000 (based on fiscal year 1980 constant 

12 dollars); 

13 (2) a civilian agency is responsible for the system and total expendi14 tures for the system are estimated to exceed the greater of $750,000 

15 (based on fiscal year 1980 constant dollars) or the dollar threshold for 

16 a major system established by the agency pursuant to Office of Man17 agement and Budget (OMB) Circular A–109, entitled ‘‘Major Systems 

18 Acquisitions’’; or 

19 (3) the head of the agency responsible for the system designates the 

20 system a major system. 

21 § 109. Nondevelopmental item 

22 In this subtitle, the term ‘‘nondevelopmental item’’ means—

23 (1) a commercial item; 

24 (2) a previously developed item of supply that is in use by a depart25 ment or agency of the Federal Government, a State or local govern26 ment, or a foreign government with which the United States has a mu27 tual defense cooperation agreement; 

28 (3) an item of supply described in clause (1) or (2) that requires 

29 only minor modification or modification of the type customarily avail30 able in the commercial marketplace to meet the requirements of the 

31 procuring department or agency; or 

32 (4) an item of supply currently being produced that does not meet 

33 the requirements of clause (1), (2), or (3) solely because the item is 

34 not yet in use. 

35 § 110. Procurement 

36 In this subtitle, the term ‘‘procurement’’ includes all stages of the process 

37 of acquiring property or services, beginning with the process for determining 

38 a need for property or services and ending with contract completion and 

39 closeout. 
6

•HR 4320 IH 

1 § 111. Procurement system 

2 In this subtitle, the term ‘‘procurement system’’ means the integration of 

3 the procurement process, the professional development of procurement per4 sonnel, and the management structure for carrying out the procurement 

5 function. 

6 § 112. Responsible source 

7 In this subtitle, the term ‘‘responsible source’’ means a prospective con8 tractor that—

9 (1) has adequate financial resources to perform the contract or the 

10 ability to obtain those resources; 

11 (2) is able to comply with the required or proposed delivery or per12 formance schedule, taking into consideration all existing commercial 

13 and Federal Government business commitments; 

14 (3) has a satisfactory performance record; 

15 (4) has a satisfactory record of integrity and business ethics; 

16 (5) has the necessary organization, experience, accounting and oper17 ational controls, and technical skills, or the ability to obtain the organi18 zation, experience, controls, and skills; 

19 (6) has the necessary production, construction, and technical equip20 ment and facilities, or the ability to obtain the equipment and facilities; 

21 and 

22 (7) is otherwise qualified and eligible to receive an award under ap23 plicable laws and regulations. 

24 § 113. Standards 

25 In this subtitle, the term ‘‘standards’’ means the criteria for determining 

26 the effectiveness of the procurement system by measuring the performance 

27 of the various elements of the system. 

28 § 114. Supplies 

29 In this subtitle, the term ‘‘supplies’’—

30 (1) means an individual part, component, subassembly, assembly, or 

31 subsystem integral to a major system, and other property which may 

32 be replaced during the service life of the system, including spare parts 

33 and replenishment spare parts; but 

34 (2) does not include packaging or labeling associated with shipment 

35 or identification of an item. 

36 § 115. Technical data 

37 In this subtitle, the term ‘‘technical data’’—

38 (1) means recorded information (regardless of the form or method 

39 of the recording) of a scientific or technical nature (including computer

40 software documentation) relating to supplies procured by an agency; 

41 but 
7

•HR 4320 IH 

1 (2) does not include computer software or financial, administrative, 

2 cost or pricing, or management data or other information incidental to 

3 contract administration. 

4 SUBCHAPTER II—PART B DEFINITIONS 

5 § 131. Competitive procedures 

6 In part B, the term ‘‘competitive procedures’’ means procedures under 

7 which an agency enters into a contract pursuant to full and open competi8 tion. 

9 § 132. Executive agency 

10 In part B, the term ‘‘executive agency’’ means—

11 (1) an executive department specified in section 101 of title 5; 

12 (2) a military department specified in section 102 of title 5; 

13 (3) an independent establishment as defined in section 104(1) of title 

14 5; and 

15 (4) a wholly owned Government corporation fully subject to chapter 

16 91 of title 31. 

17 § 133. Simplified acquisition threshold 

18 In part B, the term ‘‘simplified acquisition threshold’’ means $100,000.

19 PART B—ADMINISTRATIVE

20 CHAPTER 11—OFFICE OF FEDERAL PROCUREMENT 

21 POLICY

SUBCHAPTER I—GENERAL 

Sec. 

1101. Office of Federal Procurement Policy. 

1102. Administrator for Federal Procurement Policy. 

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.

22 SUBCHAPTER I—GENERAL 

23 § 1101. Office of Federal Procurement Policy 

24 (a) ORGANIZATION.—There is an Office of Federal Procurement Policy 

25 in the Office of Management and Budget. 

26 (b) PURPOSES.—The purposes of the Office of Federal Procurement Pol27 icy are to—

28 (1) provide overall direction of Federal Government-wide procure29 ment policies, regulations, procedures, and forms for executive agencies; 

30 and 
8

•HR 4320 IH 

1 (2) promote economy, efficiency, and effectiveness in the procure2 ment of property and services by the executive branch of the Govern3 ment. 

4 (c) AUTHORIZATION OF APPROPRIATIONS.—Necessary amounts may be 

5 appropriated each fiscal year for the Office of Federal Procurement Policy 

6 to carry out the responsibilities of the Office for that fiscal year. 

7 § 1102. Administrator for Federal Procurement Policy 

8 (a) HEAD OF OFFICE.—The head of the Office of Federal Procurement 

9 Policy is the Administrator for Federal Procurement Policy. 

10 (b) APPOINTMENT.—The Administrator is appointed by the President, by 

11 and with the advice and consent of the Senate. 

12 SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE 

13 ADMINISTRATOR 

14 § 1121. General authority 

15 (a) OVERALL DIRECTION AND LEADERSHIP.—The Administrator for 

16 Federal Procurement Policy shall provide overall direction of procurement 

17 policy and leadership in the development of procurement systems of the ex18 ecutive agencies. 

19 (b) FEDERAL ACQUISITION REGULATION.—To the extent that the Ad20 ministrator considers appropriate in carrying out the policies and functions 

21 set forth in this part, and with due regard for applicable laws and the pro22 gram activities of the executive agencies, the Administrator may prescribe 

23 Federal Government-wide procurement policies. The policies shall be imple24 mented in a single Government-wide procurement regulation called the Fed25 eral Acquisition Regulation. 

26 (c) POLICIES TO BE FOLLOWED BY EXECUTIVE AGENCIES.—

27 (1) AREAS OF PROCUREMENT FOR WHICH POLICIES ARE TO BE FOL28 LOWED.—The policies implemented in the Federal Acquisition Regula29 tion shall be followed by executive agencies in the procurement of—

30 (A) property other than real property in being; 

31 (B) services, including research and development; and 

32 (C) construction, alteration, repair, or maintenance of real prop33 erty. 

34 (2) PROCEDURES TO ENSURE COMPLIANCE.—The Administrator 

35 shall establish procedures to ensure compliance with the Federal Acqui36 sition Regulation by all executive agencies. 

37 (3) APPLICATION OF OTHER LAWS.—The authority of an executive 

38 agency under another law to prescribe policies, regulations, procedures, 

39 and forms for procurement is subject to the authority conferred in this 

40 section and sections 1122(a)–(c)(1), 1125, 1126, 1130, 1131, and 

41 2304 of this title. 
9

•HR 4320 IH 

1 (d) WHEN CERTAIN AGENCIES ARE UNABLE TO AGREE OR FAIL TO

2 ACT.—In any instance in which the Administrator determines that the De3 partment of Defense, the National Aeronautics and Space Administration, 

4 and the General Services Administration are unable to agree on or fail to 

5 issue Government-wide regulations, procedures, and forms in a timely man6 ner, including regulations, procedures, and forms necessary to implement 

7 prescribed policy the Administrator initiates under subsection (b), the Ad8 ministrator, with due regard for applicable laws and the program activities 

9 of the executive agencies and consistent with the policies and functions set 

10 forth in this part, shall prescribe Government-wide regulations, procedures, 

11 and forms which executive agencies shall follow in procuring items listed in 

12 subsection (c)(1). 

13 (e) OVERSIGHT OF PROCUREMENT REGULATIONS OF OTHER AGEN14 CIES.—The Administrator, with the concurrence of the Director of the Of15 fice of Management and Budget, and with consultation with the head of the 

16 agency concerned, may deny the prescription of or rescind any Government17 wide regulation or final rule or regulation of any executive agency relating 

18 to procurement if the Administrator determines that the rule or regulation 

19 is inconsistent with any policies, regulations, or procedures issued pursuant 

20 to subsection (b). 

21 (f) LIMITATION ON AUTHORITY.—The authority of the Administrator 

22 under this part does not—

23 (1) impair or interfere with the determination by executive agencies 

24 of their need for, or their use of, specific property, services, or con25 struction, including particular specifications for the property, services, 

26 or construction; or 

27 (2) interfere with the determination by executive agencies of specific 

28 actions in the award or administration of procurement contracts. 

29 § 1122. Functions 

30 (a) IN GENERAL.—The functions of the Administrator for Federal Pro31 curement Policy include—

32 (1) providing leadership and ensuring action by the executive agen33 cies in establishing, developing, and maintaining the single system of 

34 simplified Federal Government-wide procurement regulations and re35 solving differences among the executive agencies in developing sim36 plified Government-wide procurement regulations, procedures, and 

37 forms;

38 (2) coordinating the development of Government-wide procurement 

39 system standards that executive agencies shall implement in their pro40 curement systems; 
10

•HR 4320 IH 

1 (3) providing leadership and coordination in formulating the execu2 tive branch position on legislation relating to procurement; 

3 (4)(A) providing for and directing the activities of the computer4 based Federal Procurement Data System (including recommending to 

5 the Administrator of General Services a sufficient budget for those ac6 tivities), which shall be located in the General Services Administration, 

7 in order to adequately collect, develop, and disseminate procurement 

8 data; and 

9 (B) ensuring executive agency compliance with the record require10 ments of section 1710 of this title; 

11 (5) providing for and directing the activities of the Federal Acquisi12 tion Institute (including recommending to the Administrator of General 

13 Services a sufficient budget for those activities), which shall be located 

14 in the General Services Administration, in order to—

15 (A) foster and promote the development of a professional acqui16 sition workforce Government-wide; 

17 (B) promote and coordinate Government-wide research and 

18 studies to improve the procurement process and the laws, policies, 

19 methods, regulations, procedures, and forms relating to acquisition 

20 by the executive agencies; 

21 (C) collect data and analyze acquisition workforce data from the 

22 Office of Personnel Management, the heads of executive agencies, 

23 and, through periodic surveys, from individual employees; 

24 (D) periodically analyze acquisition career fields to identify crit25 ical competencies, duties, and tasks and related academic pre26 requisites, skills, and knowledge; 

27 (E) coordinate and assist agencies in identifying and recruiting 

28 highly qualified candidates for acquisition fields; 

29 (F) develop instructional materials for acquisition personnel in 

30 coordination with private and public acquisition colleges and train31 ing facilities; 

32 (G) evaluate the effectiveness of training and career develop33 ment programs for acquisition personnel; 

34 (H) promote the establishment and utilization of academic pro35 grams by colleges and universities in acquisition fields; 

36 (I) facilitate, to the extent requested by agencies, interagency 

37 intern and training programs; and 

38 (J) perform other career management or research functions as 

39 directed by the Administrator for Federal Procurement Policy; 

40 (6) administering section 1703(a)–(h) of this title; 
11

•HR 4320 IH 

1 (7) establishing criteria and procedures to ensure the effective and 

2 timely solicitation of the viewpoints of interested parties in the develop3 ment of procurement policies, regulations, procedures, and forms; 

4 (8) developing standard contract forms and contract language in 

5 order to reduce the Government’s cost of procuring property and serv6 ices and the private sector’s cost of doing business with the Govern7 ment; 

8 (9) providing for a Government-wide award to recognize and promote 

9 vendor excellence; 

10 (10) providing for a Government-wide award to recognize and pro11 mote excellence in officers and employees of the Government serving in 

12 procurement-related positions; 

13 (11) developing policies, in consultation with the Administrator of 

14 the Small Business Administration, that ensure that small businesses, 

15 qualified HUBZone small business concerns (as defined in section 3(p) 

16 of the Small Business Act (15 U.S.C. 632(p)), small businesses owned 

17 and controlled by socially and economically disadvantaged individuals, 

18 and small businesses owned and controlled by women are provided with 

19 the maximum practicable opportunities to participate in procurements 

20 that are conducted for amounts below the simplified acquisition thresh21 old; 

22 (12) developing policies that will promote achievement of goals for 

23 participation by small businesses, qualified HUBZone small business 

24 concerns (as defined in section 3(p) of the Small Business Act (15 

25 U.S.C. 632(p)), small businesses owned and controlled by socially and 

26 economically disadvantaged individuals, and small businesses owned 

27 and controlled by women; and 

28 (13) completing action, as appropriate, on the recommendations of 

29 the Commission on Government Procurement. 

30 (b) CONSULTATION AND ASSISTANCE.—In carrying out the functions in 

31 subsection (a), the Administrator for Federal Procurement Policy—

32 (1) shall consult with the affected executive agencies, including the 

33 Small Business Administration; 

34 (2) with the concurrence of the heads of affected executive agencies, 

35 may designate one or more executive agencies to assist in performing 

36 those functions; and 

37 (3) may establish advisory committees or other interagency groups 

38 to assist in providing for the establishment, development, and mainte39 nance of a single system of simplified Government-wide procurement 

40 regulations and to assist in performing any other function the Adminis41 trator considers appropriate. 
12

•HR 4320 IH 

1 (c) ASSIGNMENT, DELEGATION, OR TRANSFER.—

2 (1) TO ADMINISTRATOR.—Except as otherwise provided by law, only 

3 duties, functions, or responsibilities expressly assigned by this part 

4 shall be assigned, delegated, or transferred to the Administrator for 

5 Federal Procurement Policy. 

6 (2) BY ADMINISTRATOR.—

7 (A) WITHIN OFFICE.—The Administrator of Federal Procure8 ment Policy may make and authorize delegations within the Office 

9 of Federal Procurement Policy that the Administrator determines 

10 to be necessary to carry out this part. 

11 (B) TO ANOTHER EXECUTIVE AGENCY.—The Administrator of 

12 Federal Procurement Policy may delegate, and authorize succes13 sive redelegations of, an authority, function, or power of the Ad14 ministrator under this part (other than the authority to provide 

15 overall direction of Federal procurement policy and to prescribe 

16 policies and regulations to carry out the policy) to another execu17 tive agency with the consent of the head of the executive agency 

18 or at the direction of the President. 

19 § 1123. Small business concerns 

20 In formulating the Federal Acquisition Regulation and procedures to en21 sure compliance with the Regulation, the Administrator of the Office of 

22 Federal Procurement Policy, in consultation with the Small Business Ad23 ministration, shall—

24 (1) conduct analyses of the impact on small business concerns result25 ing from revised procurement regulations; and 

26 (2) incorporate into revised procurement regulations simplified bid27 ding, contract performance, and contract administration procedures for 

28 small business concerns. 

29 § 1124. Tests of innovative procurement methods and proce30 dures 

31 (a) IN GENERAL.—The Administrator for Federal Procurement Policy 

32 may develop innovative procurement methods and procedures to be tested 

33 by selected executive agencies. In developing a program to test innovative 

34 procurement methods and procedures under this subsection, the Adminis35 trator shall consult with the heads of executive agencies to—

36 (1) ascertain the need for and specify the objectives of the program;

37 (2) develop the guidelines and procedures for carrying out the pro38 gram and the criteria to be used in measuring the success of the pro39 gram; 
13

•HR 4320 IH 

1 (3) evaluate the potential costs and benefits which may be derived 

2 from the innovative procurement methods and procedures tested under 

3 the program; 

4 (4) select the appropriate executive agencies or components of execu5 tive agencies to carry out the program; 

6 (5) specify the categories and types of products or services to be pro7 cured under the program; and 

8 (6) develop the methods to be used to analyze the results of the pro9 gram. 

10 (b) APPROVAL OF EXECUTIVE AGENCIES REQUIRED.—A program to test 

11 innovative procurement methods and procedures may not be carried out un12 less approved by the heads of the executive agencies selected to carry out 

13 the program. 

14 (c) REQUEST FOR WAIVER OF LAW.—If the Administrator determines 

15 that it is necessary to waive the application of a provision of law to carry 

16 out a proposed program to test innovative procurement methods and proce17 dures under subsection (a), the Administrator shall transmit notice of the 

18 proposed program to the Committee on Government Reform of the House 

19 of Representatives and the Committee on Governmental Affairs of the Sen20 ate and request that the Committees take the necessary action to provide 

21 that the provision of law does not apply with respect to the proposed pro22 gram. The notification to Congress shall include—

23 (1) a description of the proposed program (including the scope and 

24 purpose of the proposed program); 

25 (2) the procedures to be followed in carrying out the proposed pro26 gram; 

27 (3) the provisions of law affected and the application of any provi28 sion of law that must be waived in order to carry out the proposed pro29 gram; and 

30 (4) the executive agencies involved in carrying out the proposed pro31 gram. 

32 § 1125. Recipients of Federal grants or assistance 

33 (a) AUTHORITY.—With due regard to applicable laws and the program 

34 activities of the executive agencies administering Federal programs of 

35 grants or assistance, the Administrator for Federal Procurement Policy may 

36 prescribe Federal Government-wide policies, regulations, procedures, and 

37 forms that the Administrator considers appropriate and that executive agen38 cies shall follow in providing for the procurement, to the extent required 

39 under those programs, of property or services referred to in section 

40 1121(c)(1) of this title by recipients of Federal grants or assistance under 

41 the programs. 
14

•HR 4320 IH 

1 (b) LIMITATION.—Subsection (a) does not—

2 (1) permit the Administrator to authorize procurement or supply 

3 support, either directly or indirectly, to a recipient of a Federal grant 

4 or assistance; or 

5 (2) authorize action by a recipient contrary to State and local law 

6 in the case of a program to provide a Federal grant or assistance to 

7 a State or political subdivision. 

8 § 1126. Policy regarding consideration of contractor past 

9 performance 

10 (a) GUIDANCE.—The Administrator for Federal Procurement Policy shall 

11 prescribe for executive agencies guidance regarding consideration of the past 

12 contract performance of offerors in awarding contracts. The guidance shall 

13 include—

14 (1) standards for evaluating past performance with respect to cost 

15 (when appropriate), schedule, compliance with technical or functional 

16 specifications, and other relevant performance factors that facilitate 

17 consistent and fair evaluation by all executive agencies; 

18 (2) policies for the collection and maintenance of information on past 

19 contract performance that, to the maximum extent practicable, facili20 tate automated collection, maintenance, and dissemination of informa21 tion and provide for ease of collection, maintenance, and dissemination 

22 of information by other methods, as necessary; 

23 (3) policies for ensuring that—

24 (A) offerors are afforded an opportunity to submit relevant in25 formation on past contract performance, including performance 

26 under contracts entered into by the executive agency concerned, 

27 other departments and agencies of the Federal Government, agen28 cies of State and local governments, and commercial customers; 

29 and 

30 (B) the information submitted by offerors is considered; and 

31 (4) the period for which information on past performance of offerors 

32 may be maintained and considered. 

33 (b) INFORMATION NOT AVAILABLE.—If there is no information on past 

34 contract performance of an offeror or the information on past contract per35 formance is not available, the offeror may not be evaluated favorably or un36 favorably on the factor of past contract performance. 

37 § 1127. Determining benchmark compensation amount 

38 (a) DEFINITIONS.—In this section—

39 (1) BENCHMARK COMPENSATION AMOUNT.—The term ‘‘benchmark 

40 compensation amount’’, for a fiscal year, is the median amount of the 

41 compensation provided for all senior executives of all benchmark cor-
15

•HR 4320 IH 

1 porations for the most recent year for which data is available at the 

2 time the determination under subsection (b) is made. 

3 (2) BENCHMARK CORPORATION.—The term ‘‘benchmark corpora4 tion’’, with respect to a fiscal year, means a publicly-owned United 

5 States corporation that has annual sales in excess of $50,000,000 for 

6 the fiscal year. 

7 (3) COMPENSATION.—The term ‘‘compensation’’, for a fiscal year, 

8 means the total amount of wages, salary, bonuses, and deferred com9 pensation for the fiscal year, whether paid, earned, or otherwise accru10 ing, as recorded in an employer’s cost accounting records for the fiscal 

11 year. 

12 (4) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year a 

13 contractor establishes for accounting purposes. 

14 (5) PUBLICLY-OWNED UNITED STATES CORPORATION.—The term 

15 ‘‘publicly-owned United States corporation’’ means a corporation—

16 (A) organized under the laws of a State of the United States, 

17 the District of Columbia, Puerto Rico, or a possession of the 

18 United States; and 

19 (B) whose voting stock is publicly traded. 

20 (6) SENIOR EXECUTIVES.—The term ‘‘senior executives’’, with re21 spect to a contractor, means the five most highly compensated employ22 ees in management positions at each home office and each segment of 

23 the contractor. 

24 (b) DETERMINING BENCHMARK COMPENSATION AMOUNT.—For purposes 

25 of section 4304(a)(16) of this title and section 2324(e)(1)(P) of title 10, 

26 the Administrator for Federal Procurement Policy shall review commercially 

27 available surveys of executive compensation and, on the basis of the results 

28 of the review, determine a benchmark compensation amount to apply for 

29 each fiscal year. In making determinations under this subsection the Admin30 istrator shall consult with the Director of the Defense Contract Audit Agen31 cy and other officials of executive agencies as the Administrator considers 

32 appropriate. 

33 § 1128. Maintaining necessary capability with respect to ac34 quisition of architectural and engineering services 

35 The Administrator for Federal Procurement Policy, in consultation with 

36 the Secretary of Defense, the Administrator of General Services, and the 

37 Director of the Office of Personnel Management, shall develop and imple38 ment a plan to ensure that the Federal Government maintains the necessary

39 capability with respect to the acquisition of architectural and engineering 

40 services to—
16

•HR 4320 IH 

1 (1) ensure that Government employees have the expertise to deter2 mine agency requirements for those services; 

3 (2) establish priorities and programs, including acquisition plans; 

4 (3) establish professional standards; 

5 (4) develop scopes of work; and 

6 (5) award and administer contracts for those services. 

7 § 1129. Center of excellence in contracting for services 

8 The Administrator for Federal Procurement Policy shall maintain a cen9 ter of excellence in contracting for services. The center shall assist the ac10 quisition community by identifying, and serving as a clearinghouse for, best 

11 practices in contracting for services in the public and private sectors. 

12 § 1130. Effect of part on other law 

13 This part does not impair or affect the authorities or responsibilities con14 ferred by part C of this subtitle. 

15 § 1131. Annual report 

16 The Administrator for Federal Procurement Policy annually shall submit 

17 to Congress an assessment of the progress made in executive agencies in 

18 implementing the policy regarding major acquisitions that is stated in sec19 tion 3104(a) of this title. The Administrator shall use data from existing 

20 management systems in making the assessment. 

21 CHAPTER 13—ACQUISITION COUNCILS

SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY COUNCIL 

Sec. 

1301. Establishment and membership. 

1302. Functions and authority. 

1303. Contract clauses and certifications. 

SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 

1311. Establishment and membership. 

1312. Functions.

22 SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY 

23 COUNCIL 

24 § 1301. Establishment and membership 

25 (a) ESTABLISHMENT.—There is a Federal Acquisition Regulatory Council 

26 to assist in the direction and coordination of Federal Government-wide pro27 curement policy and Government-wide procurement regulatory activities in 

28 the Government. 

29 (b) MEMBERSHIP.—

30 (1) MAKEUP OF COUNCIL.—The Council consists of—

31 (A) the Administrator for Federal Procurement Policy; 

32 (B) the Secretary of Defense; 

33 (C) the Administrator of National Aeronautics and Space; and 

34 (D) the Administrator of General Services. 

35 (2) DESIGNATION OF OTHER OFFICIALS.—
17

•HR 4320 IH 

1 (A) OFFICIALS WHO MAY BE DESIGNATED.—Notwithstanding 

2 section 121(d)(1) and (2) of title 40, the officials specified in 

3 clauses (B)–(D) of paragraph (1) may designate to serve on and 

4 attend meetings of the Council in place of that official—

5 (i) the official assigned by statute with the responsibility 

6 for acquisition policy in each of their respective agencies or, 

7 in the case of the Secretary of Defense, an official at an orga8 nizational level not lower than an Assistant Secretary of De9 fense within the Office of the Under Secretary of Defense for 

10 Acquisition, Technology, and Logistics; or 

11 (ii) if no official of that agency is assigned by statute with 

12 the responsibility for acquisition policy for that agency, the 

13 official designated pursuant to section 1702(c) of this title. 

14 (B) LIMITATION ON DESIGNATION.—No other official or em15 ployee may be designated to serve on the Council. 

16 § 1302. Functions and authority 

17 (a) FUNCTIONS.—

18 (1) ISSUE AND MAINTAIN FEDERAL ACQUISITION REGULATION.—

19 Subject to sections 1121, 1122(a)–(c)(1), 1125, 1126, 1130, 1131, and 

20 2304 of this title, the Administrator of General Services, the Secretary 

21 of Defense, and the Administrator of National Aeronautics and Space, 

22 pursuant to their respective authorities under part C of this subtitle, 

23 chapters 4 and 137 of title 10, and the National Aeronautics and 

24 Space Act of 1958 (42 U.S.C. 2451 et seq.), shall jointly issue and 

25 maintain in accordance with subsection (d) a single Government-wide 

26 procurement regulation, to be known as the Federal Acquisition Regu27 lation. 

28 (2) LIMITATION ON OTHER REGULATIONS.—Other regulations relat29 ing to procurement issued by an executive agency shall be limited to—

30 (A) regulations essential to implement Government-wide policies 

31 and procedures within the agency; and 

32 (B) additional policies and procedures required to satisfy the 

33 specific and unique needs of the agency. 

34 (3) ENSURE CONSISTENT REGULATIONS.—The Administrator for 

35 Federal Procurement Policy, in consultation with the Council, shall en36 sure that procurement regulations prescribed by executive agencies are 

37 consistent with the Federal Acquisition Regulation and in accordance 

38 with the policies prescribed pursuant to section 1121(b) of this title. 

39 (4) REQUEST TO REVIEW REGULATION.—

40 (A) BASIS FOR REQUEST.—Under procedures the Administrator 

41 for Federal Procurement Policy establishes, a person may request 
18

•HR 4320 IH 

1 the Administrator to review a regulation relating to procurement 

2 on the basis that the regulation is inconsistent with the Federal 

3 Acquisition Regulation. 

4 (B) PERIOD OF REVIEW.—Unless the request is frivolous or 

5 does not, on its face, state a valid basis for the review, the Admin6 istrator for Federal Procurement Policy shall complete the review 

7 not later than 60 days after receiving the request. The time for 

8 completion of the review may be extended if the Administrator de9 termines that an additional period of review is required. The Ad10 ministrator shall advise the requester of the reasons for the exten11 sion and the date by which the review will be completed. 

12 (5) WHEN REGULATION IS INCONSISTENT OR NEEDS TO BE IM13 PROVED.—If the Administrator for Federal Procurement Policy deter14 mines that a regulation relating to procurement is inconsistent with the 

15 Federal Acquisition Regulation or that the regulation otherwise should 

16 be revised to remove an inconsistency with the policies issued under 

17 section 1121(b) of this title, the Administrator shall rescind or deny 

18 the promulgation of the regulation or take other action authorized 

19 under sections 1121, 1122(a)–(c)(1), 1125, 1126, 1130, 1131, and 

20 2304 of this title as may be necessary to remove the inconsistency. If 

21 the Administrator determines that the regulation, although not incon22 sistent with the Federal Acquisition Regulation or those policies, should 

23 be revised to improve compliance with the Regulation or policies, the 

24 Administrator shall take action authorized under sections 1121, 

25 1122(a)–(c)(1), 1125, 1126, 1130, 1131, and 2304 as may be nec26 essary and appropriate. 

27 (6) DECISIONS TO BE IN WRITING AND PUBLICLY AVAILABLE.—The 

28 decisions of the Administrator for Federal Procurement Policy shall be 

29 in writing and made publicly available. 

30 (b) ADDITIONAL RESPONSIBILITIES OF MEMBERSHIP.—

31 (1) IN GENERAL.—Subject to the authority, direction, and control of 

32 the head of the agency concerned, each official who represents an agen33 cy on the Council pursuant to section 1301(b) of this title shall—

34 (A) approve or disapprove all regulations relating to procure35 ment that are proposed for public comment, prescribed in final 

36 form, or otherwise made effective by that agency before the regula37 tion may be prescribed in final form, or otherwise made effective, 

38 except that the official may grant an interim approval, without re39 view, for not more than 60 days for a procurement regulation in 

40 urgent and compelling circumstances; 
19

•HR 4320 IH 

1 (B) carry out the responsibilities of that agency set forth in 

2 chapter 35 of title 44 for each information collection request that 

3 relates to procurement rules or regulations; and 

4 (C) eliminate or reduce—

5 (i) any redundant or unnecessary levels of review and ap6 proval in the procurement system of that agency; and 

7 (ii) redundant or unnecessary procurement regulations 

8 which are unique to that agency. 

9 (2) LIMITATION ON DELEGATION.—The authority to review and ap10 prove or disapprove regulations under paragraph (1)(A) may not be 

11 delegated to an individual outside the office of the official who rep12 resents the agency on the Council pursuant to section 1301(b) of this 

13 title. 

14 (c) GOVERNING POLICIES.—All actions of the Council and of members of 

15 the Council shall be in accordance with and furtherance of the policies pre16 scribed under section 1121(b) of this title. 

17 (d) GENERAL AUTHORITY WITH RESPECT TO FEDERAL ACQUISITION

18 REGULATION.—Subject to section 1121(d) of this title, the Council shall 

19 manage, coordinate, control, and monitor the maintenance of, issuance of, 

20 and changes in, the Federal Acquisition Regulation. 

21 § 1303. Contract clauses and certifications 

22 (a) REPETITIVE NONSTANDARD CONTRACT CLAUSES DISCOURAGED.—

23 The Federal Acquisition Regulatory Council shall prescribe regulations to 

24 discourage the use of a nonstandard contract clause on a repetitive basis. 

25 The regulations shall include provisions that—

26 (1) clearly define what types of contract clauses are to be treated 

27 as nonstandard clauses; and 

28 (2) require prior approval for the use of a nonstandard clause on a 

29 repetitive basis by an official at a level of responsibility above the con30 tracting officer. 

31 (b) WHEN CERTIFICATION REQUIRED.—

32 (1) BY LAW.—A certification by a contractor or offeror in a procure33 ment made or to be made by the Federal Government is not required 

34 by a law unless the law specifically provides that certification shall be 

35 required. 

36 (2) IN FEDERAL ACQUISITION REGULATION.—A requirement for a 

37 certification by a contractor or offeror may not be included in the Fed38 eral Acquisition Regulation unless—

39 (A) the certification requirement is specifically imposed by stat40 ute; or 
20

•HR 4320 IH 

1 (B) written justification for the certification requirement is pro2 vided to the Administrator for Federal Procurement Policy by the 

3 Council and the Administrator approves in writing the inclusion of 

4 the certification requirement. 

5 (3) EXECUTIVE AGENCY PROCUREMENT REGULATION.—

6 (A) DEFINITION.—In subparagraph (B), ‘‘head of the executive 

7 agency’’ with respect to a military department means the Sec8 retary of Defense. 

9 (B) WHEN CERTIFICATION REQUIREMENT MAY BE INCLUDED

10 IN REGULATION.—A requirement for a certification by a con11 tractor or offeror may not be included in a procurement regulation 

12 of an executive agency unless—

13 (i) the certification requirement is specifically imposed by 

14 statute; or 

15 (ii) written justification for the certification requirement is 

16 provided to the head of the executive agency by the senior 

17 procurement executive of the agency and the head of the exec18 utive agency approves in writing the inclusion of the certifi19 cation requirement. 

20 SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 

21 § 1311. Establishment and membership 

22 (a) ESTABLISHMENT.—There is in the executive branch a Chief Acquisi23 tion Officers Council. 

24 (b) MEMBERSHIP.—The members of the Council are—

25 (1) the Deputy Director for Management of the Office of Manage26 ment and Budget; 

27 (2) the Administrator for Federal Procurement Policy; 

28 (3) the Under Secretary of Defense for Acquisition, Technology, and 

29 Logistics; 

30 (4) the chief acquisition officer of each executive agency that is re31 quired to have a chief acquisition officer under section 1702 of this 

32 title and the senior procurement executive of each military department; 

33 and 

34 (5) any other senior agency officer of each executive agency, ap35 pointed by the head of the agency in consultation with the Chairman 

36 of the Council, who can effectively assist the Council in performing the 

37 functions set forth in section 1312(b) of this title and supporting the 

38 associated range of acquisition activities. 

39 (c) LEADERSHIP AND SUPPORT.—

40 (1) CHAIRMAN.—The Deputy Director is the chairman of the Coun41 cil. 
21

•HR 4320 IH 

1 (2) VICE CHAIRMAN.—The Vice Chairman of the Council shall be se2 lected by the Council from among its members. The Vice Chairman 

3 serves for one year and may serve multiple terms. 

4 (3) LEADER OF ACTIVITIES.—The Administrator for Federal Pro5 curement Policy shall lead the activities of the Council on behalf of the 

6 Deputy Director. 

7 (4) SUPPORT.—The Administrator for General Services shall provide 

8 administrative and other support for the Council. 

9 § 1312. Functions 

10 (a) PRINCIPAL FORUM.—The Chief Acquisition Officers Council is the 

11 principal interagency forum for monitoring and improving the Federal ac12 quisition system. 

13 (b) FUNCTIONS.—The Council shall perform functions that include the 

14 following: 

15 (1) Develop recommendations for the Director of the Office of Man16 agement and Budget on Federal acquisition policies and requirements. 

17 (2) Share experiences, ideas, best practices, and innovative ap18 proaches related to Federal acquisition. 

19 (3) Assist the Administrator for Federal Procurement Policy in the 

20 identification, development, and coordination of multiagency projects 

21 and other innovative initiatives to improve Federal acquisition. 

22 (4) Promote effective business practices that ensure the timely deliv23 ery of best value products to the Federal Government and achieve ap24 propriate public policy objectives. 

25 (5) Further integrity, fairness, competition, openness, and efficiency 

26 in the Federal acquisition system. 

27 (6) Work with the Office of Personnel Management to assess and ad28 dress the hiring, training, and professional development needs of the 

29 Federal Government related to acquisition. 

30 (7) Work with the Administrator and the Federal Acquisition Regu31 latory Council to promote the business practices referred to in para32 graph (4) and other results of the functions carried out under this sub33 section. 

34 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.

35 § 1501. Cost Accounting Standards Board 

36 (a) ORGANIZATION.—The Cost Accounting Standards Board is an inde37 pendent board in the Office of Federal Procurement Policy. 
22

•HR 4320 IH 

1 (b) MEMBERSHIP.—

2 (1) NUMBER OF MEMBERS, CHAIRMAN, AND APPOINTMENT.—The 

3 Board consists of five members. One member is the Administrator for 

4 Federal Procurement Policy, who serves as Chairman. The other four 

5 members, all of whom shall have experience in Federal Government 

6 contract cost accounting, are as follows: 

7 (A) two representatives of the Government—

8 (i) one of whom is a representative of the Department of 

9 Defense appointed by the Secretary of Defense; and 

10 (ii) one of whom is an officer or employee of the General 

11 Services Administration appointed by the Administrator of 

12 General Services. 

13 (B) two individuals from the private sector, each of whom is ap14 pointed by the Administrator for Federal Procurement Policy, 

15 and—

16 (i) one of whom is a representative of industry; and 

17 (ii) one of whom is particularly knowledgeable about cost 

18 accounting problems and systems. 

19 (2) TERM OF OFFICE.—

20 (A) LENGTH OF TERM.—The term of office of each member, 

21 other than the Administrator for Federal Procurement Policy, is 

22 four years. The terms are staggered, with the terms of two mem23 bers expiring in the same year, the term of another member expir24 ing the next year, and the term of the last member expiring the 

25 year after that. 

26 (B) INDIVIDUAL REQUIRED TO REMAIN WITH APPOINTING

27 AGENCY.—A member appointed under paragraph (1)(A) may not 

28 continue to serve after ceasing to be an officer or employee of the 

29 agency from which that member was appointed. 

30 (3) VACANCY.—A vacancy on the Board shall be filled in the same 

31 manner in which the original appointment was made. A member ap32 pointed to fill a vacancy serves for the remainder of the term for which 

33 that member’s predecessor was appointed. 

34 (c) SENIOR STAFF.—The Administrator for Federal Procurement Policy, 

35 after consultation with the Board, may—

36 (1) appoint an executive secretary and two additional staff members 

37 without regard to the provisions of title 5 governing appointments in 

38 the competitive service; and 

39 (2) pay those employees without regard to the provisions of chapter 

40 51 and subchapter III of chapter 53 of title 5 relating to classification 

41 and General Schedule pay rates, except that those employees may not 
23

•HR 4320 IH 

1 receive pay in excess of the maximum rate of basic pay payable under 

2 section 5376 of title 5. 

3 (d) OTHER STAFF.—The Administrator for Federal Procurement Policy 

4 may appoint, fix the compensation of, and remove additional employees of 

5 the Board under the applicable provisions of title 5. 

6 (e) DETAILED AND TEMPORARY PERSONNEL.—For service on advisory 

7 committees and task forces to assist the Board in carrying out its functions 

8 and responsibilities—

9 (1) the Board, with the consent of the head of a Federal agency, 

10 may use, without reimbursement, personnel of that agency; and 

11 (2) the Administrator for Federal Procurement Policy, after con12 sultation with the Board, may procure temporary and intermittent 

13 services of personnel under section 3109(b) of title 5. 

14 (f) COMPENSATION.—

15 (1) OFFICERS AND EMPLOYEES OF THE GOVERNMENT.—Members of 

16 the Board who are officers or employees of the Government, and offi17 cers and employees of other agencies of the Government who are used 

18 under subsection (e)(1), may not receive additional compensation for 

19 services but shall continue to be compensated by the employing depart20 ment or agency of the officer or employee. 

21 (2) APPOINTEES FROM PRIVATE SECTOR.—Each member of the 

22 Board appointed from the private sector shall receive compensation at 

23 a rate not to exceed the daily equivalent of the rate for level IV of the 

24 Executive Schedule for each day (including travel time) in which the 

25 member is engaged in the actual performance of duties vested in the 

26 Board. 

27 (3) TEMPORARY AND INTERMITTENT PERSONNEL.—An individual 

28 hired under subsection (e)(2) may receive compensation at a rate fixed 

29 by the Administrator for Federal Procurement Policy, but not to exceed 

30 the daily equivalent of the rate for level V of the Executive Schedule 

31 for each day (including travel time) in which the individual is properly 

32 engaged in the actual performance of duties under this chapter. 

33 (4) TRAVEL EXPENSES.—While serving away from home or regular 

34 place of business, Board members and other individuals serving on an 

35 intermittent basis under this chapter shall be allowed travel expenses 

36 in accordance with section 5703 of title 5. 

37 § 1502. Cost accounting standards 

38 (a) AUTHORITY.—

39 (1) COST ACCOUNTING STANDARDS BOARD.—The Cost Accounting 

40 Standards Board has exclusive authority to prescribe, amend, and re41 scind cost accounting standards, and interpretations of the standards, 
24

•HR 4320 IH 

1 designed to achieve uniformity in the cost accounting standards gov2 erning measurement, assignment, and allocation of costs to contracts 

3 with the Federal Government. 

4 (2) ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY.—The 

5 Administrator for Federal Procurement Policy, after consultation with 

6 the Board, shall prescribe rules and procedures governing actions of 

7 the Board under this chapter. The rules and procedures shall require 

8 that any action to prescribe, amend, or rescind a standard or interpre9 tation be approved by majority vote of the Board. 

10 (b) MANDATORY USE OF STANDARDS.—

11 (1) SUBCONTRACT.—

12 (A) DEFINITION.—In this paragraph, ‘‘subcontract’’ includes a 

13 transfer of commercial items between divisions, subsidiaries, or af14 filiates of a contractor or subcontractor. 

15 (B) WHEN STANDARDS ARE TO BE USED.—Cost accounting 

16 standards prescribed under this chapter are mandatory for use by 

17 all executive agencies and by contractors and subcontractors in es18 timating, accumulating, and reporting costs in connection with the 

19 pricing and administration of, and settlement of disputes con20 cerning, all negotiated prime contract and subcontract procure21 ments with the Federal Government in excess of $500,000. 

22 (C) NONAPPLICATION OF STANDARDS.—Subparagraph (B) does 

23 not apply to—

24 (i) a contract or subcontract for the acquisition of a com25 mercial item; 

26 (ii) a contract or subcontract where the price negotiated is 

27 based on a price set by law or regulation; 

28 (iii) a firm, fixed-price contract or subcontract awarded on 

29 the basis of adequate price competition without submission of 

30 certified cost or pricing data; or 

31 (iv) a contract or subcontract with a value of less than 

32 $7,500,000 if, when the contract or subcontract is entered 

33 into, the segment of the contractor or subcontractor that will 

34 perform the work has not been awarded at least one contract

35 or subcontract with a value of more than $7,500,000 that is 

36 covered by the standards. 

37 (2) EXEMPTIONS AND WAIVERS BY BOARD.—The Board may—

38 (A) exempt classes of contractors and subcontractors from the 

39 requirements of this chapter; and 

40 (B) establish procedures for the waiver of the requirements of 

41 this chapter for individual contracts and subcontracts. 
25

•HR 4320 IH 

1 (3) WAIVER BY HEAD OF EXECUTIVE AGENCY.—

2 (A) IN GENERAL.—The head of an executive agency may waive 

3 the applicability of the cost accounting standards for a contract 

4 or subcontract with a value of less than $15,000,000 if that offi5 cial determines in writing that the segment of the contractor or 

6 subcontractor that will perform the work—

7 (i) is primarily engaged in the sale of commercial items; 

8 and 

9 (ii) would not otherwise be subject to the cost accounting 

10 standards under this section. 

11 (B) IN EXCEPTIONAL CIRCUMSTANCES.—The head of an execu12 tive agency may waive the applicability of the cost accounting 

13 standards for a contract or subcontract under exceptional cir14 cumstances when necessary to meet the needs of the agency. A de15 termination to waive the applicability of the standards under this 

16 subparagraph shall be set forth in writing and shall include a 

17 statement of the circumstances justifying the waiver. 

18 (C) RESTRICTION ON DELEGATION OF AUTHORITY.—The head 

19 of an executive agency may not delegate the authority under sub20 paragraph (A) or (B) to an official in the executive agency below 

21 the senior policymaking level in the executive agency. 

22 (D) CONTENTS OF FEDERAL ACQUISITION REGULATION.—The 

23 Federal Acquisition Regulation shall include—

24 (i) criteria for selecting an official to be delegated authority 

25 to grant waivers under subparagraph (A) or (B); and 

26 (ii) the specific circumstances under which the waiver may 

27 be granted. 

28 (E) REPORT.—The head of each executive agency shall report 

29 the waivers granted under subparagraphs (A) and (B) for that 

30 agency to the Board on an annual basis. 

31 (c) REQUIRED BOARD ACTION FOR PRESCRIBING STANDARDS AND IN32 TERPRETATIONS.—Before prescribing cost accounting standards and inter33 pretations, the Board shall—

34 (1) take into account, after consultation and discussions with the 

35 Comptroller General, professional accounting organizations, contrac36 tors, and other interested parties—

37 (A) the probable costs of implementation, including any infla38 tionary effects, compared to the probable benefits; 

39 (B) the advantages, disadvantages, and improvements antici40 pated in the pricing and administration of, and settlement of dis41 putes concerning, contracts; and 
26

•HR 4320 IH 

1 (C) the scope of, and alternatives available to, the action pro2 posed to be taken; 

3 (2) prepare and publish a report in the Federal Register on the 

4 issues reviewed under clause (1); 

5 (3)(A) publish an advanced notice of proposed rulemaking in the 

6 Federal Register to solicit comments on the report prepared under 

7 clause (2); 

8 (B) provide all parties affected at least 60 days after publication to 

9 submit their views and comments; and 

10 (C) during the 60-day period, consult with the Comptroller General 

11 and consider any recommendation the Comptroller General may make; 

12 and 

13 (4) publish a notice of proposed rulemaking in the Federal Register 

14 and provide all parties affected at least 60 days after publication to 

15 submit their views and comments. 

16 (d) EFFECTIVE DATE.—Rules, regulations, cost accounting standards, 

17 and modifications of rules, regulations, and standards prescribed or amend18 ed under this chapter have the full force and effect of law and become effec19 tive within 120 days after publication in the Federal Register in final form, 

20 unless the Board determines that a longer period is necessary. The Board 

21 shall determine implementation dates for contractors and subcontractors. 

22 The date may not be later than the beginning of the second fiscal year of 

23 the contractor or subcontractor after the standard becomes effective. 

24 (e) ACCOMPANYING MATERIAL.—Rules, regulations, cost accounting 

25 standards, and modifications prescribed or amended under this chapter shall 

26 be accompanied by prefatory comments and by illustrations, if necessary. 

27 (f) IMPLEMENTING REGULATIONS.—The Board shall prescribe regula28 tions for the implementation of cost accounting standards prescribed or in29 terpreted under this section. The regulations shall be incorporated into the 

30 Federal Acquisition Regulation and shall require contractors and sub31 contractors as a condition of contracting with the Government to—

32 (1) disclose in writing their cost accounting practices, including 

33 methods of distinguishing direct costs from indirect costs and the basis 

34 used for allocating indirect costs; and 

35 (2) agree to a contract price adjustment, with interest, for any in36 creased costs the Government pays the contractor or subcontractor be37 cause of a change in the contractor’s or subcontractor’s cost accounting 

38 practices or a failure by the contractor or subcontractor to comply with 

39 applicable cost accounting standards. 
27

•HR 4320 IH 

1 (g) NONAPPLICABILITY OF CERTAIN SECTIONS OF TITLE 5.—Functions 

2 exercised under this section are not subject to sections 551, 553–559, and 

3 701–706 of title 5. 

4 § 1503. Contract price adjustment 

5 (a) DISAGREEMENT CONSTITUTES A DISPUTE.—If the Federal Govern6 ment and a contractor or subcontractor fail to agree on a contract price ad7 justment, including whether the contractor or subcontractor has complied 

8 with the applicable cost accounting standards, the disagreement will con9 stitute a dispute under chapter 69 of this title. 

10 (b) AMOUNT OF ADJUSTMENT.—A contract price adjustment undertaken 

11 under section 1502(f)(2) of this title shall be made, where applicable, on 

12 relevant contracts between the Government and the contractor that are sub13 ject to the cost accounting standards so as to protect the Government from 

14 payment, in the aggregate, of increased costs, as defined by the Cost Ac15 counting Standards Board. The Government may not recover costs greater 

16 than the aggregate increased cost to the Government on the relevant con17 tracts subject to the price adjustment unless the contractor made a change 

18 in its cost accounting practices of which it was aware or should have been 

19 aware at the time of the price negotiation and which it failed to disclose 

20 to the Government. 

21 (c) INTEREST.—The interest rate applicable to a contract price adjust22 ment is the annual rate of interest established under section 6621 of the 

23 Internal Revenue Code of 1986 (26 U.S.C. 6621) for the period. Interest 

24 accrues from the time payments of the increased costs were made to the 

25 contractor or subcontractor to the time the Government receives full com26 pensation for the price adjustment. 

27 § 1504. Effect on other standards and regulations 

28 (a) PREVIOUSLY EXISTING STANDARDS.—All cost accounting standards, 

29 waivers, exemptions, interpretations, modifications, rules, and regulations 

30 prescribed by the Cost Accounting Standards Board under section 719 of 

31 the Defense Production Act of 1950 (50 App. U.S.C. 2168)—

32 (1) remain in effect until amended, superseded, or rescinded by the 

33 Board under this chapter; and

34 (2) are subject to this chapter in the same manner as if prescribed 

35 by the Board under this chapter. 

36 (b) INCONSISTENT AGENCY REGULATIONS.—To ensure that a regulation 

37 or proposed regulation of an executive agency is not inconsistent with a cost 

38 accounting standard prescribed or amended under this chapter, the Admin39 istrator for Federal Procurement Policy, under the authority in sections 

40 1121, 1122(a)–(c)(1), 1125, 1126, 1130, 1131, and 2304 of this title, shall 

41 rescind or deny the promulgation of the inconsistent regulation or proposed 
28

•HR 4320 IH 

1 regulation and take other appropriate action authorized under sections 

2 1121, 1122(a)–(c)(1), 1125, 1126, 1130, 1131, and 2304. 

3 (c) COSTS NOT SUBJECT TO DIFFERENT STANDARDS.—Costs that are 

4 the subject of cost accounting standards prescribed under this chapter are 

5 not subject to regulations established by another executive agency that dif6 fer from those standards with respect to the measurement, assignment, and 

7 allocation of those costs. 

8 § 1505. Examinations 

9 To determine whether a contractor or subcontractor has complied with 

10 cost accounting standards prescribed under this chapter and has followed 

11 consistently the contractor’s or subcontractor’s disclosed cost accounting 

12 practices, an authorized representative of the head of the agency concerned, 

13 of the offices of inspector general established under the Inspector General 

14 Act of 1978 (5 App. U.S.C.), or of the Comptroller General may examine 

15 and copy documents, papers, or records of the contractor or subcontractor 

16 relating to compliance with the standards. 

17 § 1506. Authorization of appropriations 

18 Necessary amounts may be appropriated to carry out this chapter. 

19 CHAPTER 17—AGENCY RESPONSIBILITIES AND 

20 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.

21 § 1701. Cooperation with the Administrator 

22 On the request of the Administrator for Federal Procurement Policy, 

23 each executive agency shall—

24 (1) make its services, personnel, and facilities available to the Office 

25 of Federal Procurement Policy to the greatest practicable extent for the 

26 performance of functions under this part; and 

27 (2) except when prohibited by law, furnish to the Administrator, and 

28 give the Administrator access to, all information and records the Office 

29 possesses that the Administrator may determine to be necessary for the 

30 performance of the functions of the Office. 
29

•HR 4320 IH 

1 § 1702. Chief Acquisition Officers and senior procurement 

2 executives 

3 (a) APPOINTMENT OR DESIGNATION OF CHIEF ACQUISITION OFFICER.—

4 The head of each executive agency described in section 901(b)(1) (other 

5 than the Department of Defense) or 901(b)(2)(C) of title 31 with a Chief 

6 Financial Officer appointed or designated under section 901(a) of title 31 

7 shall appoint or designate a non-career employee as Chief Acquisition Offi8 cer for the agency. 

9 (b) AUTHORITY AND FUNCTIONS OF CHIEF ACQUISITION OFFICER.—

10 (1) PRIMARY DUTY.—The primary duty of the Chief Acquisition Of11 ficer is acquisition management. 

12 (2) ADVICE AND ASSISTANCE.—The Chief Acquisition Officer shall 

13 advise and assist the head of the executive agency and other agency 

14 officials to ensure that the mission of the executive agency is achieved 

15 through the management of the agency’s acquisition activities. 

16 (3) OTHER FUNCTIONS.—The functions of each Chief Acquisition 

17 Officer include—

18 (A) monitoring the performance of acquisition activities and ac19 quisition programs of the executive agency, evaluating the per20 formance of those programs on the basis of applicable performance 

21 measurements, and advising the head of the executive agency re22 garding the appropriate business strategy to achieve the mission 

23 of the executive agency; 

24 (B) increasing the use of full and open competition in the acqui25 sition of property and services by the executive agency by estab26 lishing policies, procedures, and practices that ensure that the ex27 ecutive agency receives a sufficient number of sealed bids or com28 petitive proposals from responsible sources to fulfill the Federal 

29 Government’s requirements (including performance and delivery 

30 schedules) at the lowest cost or best value considering the nature 

31 of the property or service procured; 

32 (C) increasing appropriate use of performance-based contracting 

33 and performance specifications; 

34 (D) making acquisition decisions consistent with all applicable 

35 laws and establishing clear lines of authority, accountability, and 

36 responsibility for acquisition decisionmaking within the executive 

37 agency; 

38 (E) managing the direction of acquisition policy for the execu39 tive agency, including implementation of the unique acquisition 

40 policies, regulations, and standards of the executive agency; 
30

•HR 4320 IH 

1 (F) developing and maintaining an acquisition career manage2 ment program in the executive agency to ensure that there is an 

3 adequate professional workforce; and 

4 (G) as part of the strategic planning and performance evalua5 tion process required under section 306 of title 5 and sections 

6 1105(a)(28), 1115, 1116, and 9703 of title 31—

7 (i) assessing the requirements established for agency per8 sonnel regarding knowledge and skill in acquisition resources 

9 management and the adequacy of those requirements for fa10 cilitating the achievement of the performance goals estab11 lished for acquisition management; 

12 (ii) developing strategies and specific plans for hiring, 

13 training, and professional development to rectify a deficiency 

14 in meeting those requirements; and 

15 (iii) reporting to the head of the executive agency on the 

16 progress made in improving acquisition management capa17 bility. 

18 (c) SENIOR PROCUREMENT EXECUTIVE.—

19 (1) DESIGNATION.—The head of each executive agency shall des20 ignate a senior procurement executive. 

21 (2) RESPONSIBILITY.—The senior procurement executive is respon22 sible for management direction of the procurement system of the execu23 tive agency, including implementation of the unique procurement poli24 cies, regulations, and standards of the executive agency. 

25 (3) WHEN CHIEF ACQUISITION OFFICER APPOINTED OR DES26 IGNATED.—For an executive agency for which a Chief Acquisition Offi27 cer has been appointed or designated under subsection (a), the head 

28 of the executive agency shall—

29 (A) designate the Chief Acquisition Officer as the senior pro30 curement executive for the executive agency; or 

31 (B) ensure that the senior procurement executive designated 

32 under paragraph (1) reports directly to the Chief Acquisition Offi33 cer without intervening authority.

34 § 1703. Acquisition workforce 

35 (a) DESCRIPTION.—For purposes of this section, the acquisition work36 force of an agency consists of all employees serving in acquisition positions 

37 listed in subsection (g)(1)(A). 

38 (b) APPLICABILITY.—

39 (1) NONAPPLICABILITY TO CERTAIN EXECUTIVE AGENCIES.—This 

40 section does not apply to an executive agency that is subject to chapter 

41 87 of title 10. 
31

•HR 4320 IH 

1 (2) APPLICABILITY OF PROGRAMS.—The programs established by 

2 this section apply to the acquisition workforce of each executive agency. 

3 (c) MANAGEMENT POLICIES.—

4 (1) DUTIES OF HEAD OF EXECUTIVE AGENCY.—

5 (A) ESTABLISH POLICIES AND PROCEDURES.—After consulta6 tion with the Administrator for Federal Procurement Policy, the 

7 head of each executive agency shall establish policies and proce8 dures for the effective management (including accession, edu9 cation, training, career development, and performance incentives) 

10 of the acquisition workforce of the agency. The development of ac11 quisition workforce policies under this section shall be carried out 

12 consistent with the merit system principles set forth in section 

13 2301(b) of title 5. 

14 (B) ENSURE UNIFORM IMPLEMENTATION.—The head of each 

15 executive agency shall ensure that, to the maximum extent prac16 ticable, acquisition workforce policies and procedures established 

17 are uniform in their implementation throughout the agency. 

18 (2) DUTIES OF ADMINISTRATOR.—The Administrator shall issue 

19 policies to promote uniform implementation of this section by executive 

20 agencies, with due regard for differences in program requirements 

21 among agencies that may be appropriate and warranted in view of the 

22 agency mission. The Administrator shall coordinate with the Deputy 

23 Director for Management of the Office of Management and Budget to 

24 ensure that the policies are consistent with the policies and procedures 

25 established, and enhanced system of incentives provided, pursuant to 

26 section 5051(c) of the Federal Acquisition Streamlining Act of 1994 

27 (Public Law 103–355, 108 Stat. 3351). The Administrator shall evalu28 ate the implementation of this section by executive agencies. 

29 (d) AUTHORITY AND RESPONSIBILITY OF SENIOR PROCUREMENT EXEC30 UTIVE.—Subject to the authority, direction, and control of the head of an 

31 executive agency, the senior procurement executive of the agency shall carry 

32 out all powers, functions, and duties of the head of the agency with respect 

33 to implementing this section. The senior procurement executive shall ensure 

34 that the policies of the head of the executive agency established in accord35 ance with this section are implemented throughout the agency. 

36 (e) COLLECTING AND MAINTAINING INFORMATION.—The Administrator 

37 shall ensure that the heads of executive agencies collect and maintain stand38 ardized information on the acquisition workforce related to implementing 

39 this section. To the maximum extent practicable, information requirements 

40 shall conform to standards the Director of the Office of Personnel Manage41 ment establishes for the Central Personnel Data File. 
32

•HR 4320 IH 

1 (f) CAREER DEVELOPMENT.—

2 (1) CAREER PATHS.—

3 (A) IDENTIFICATION.—The head of each executive agency shall 

4 ensure that appropriate career paths for personnel who desire to 

5 pursue careers in acquisition are identified in terms of the edu6 cation, training, experience, and assignments necessary for career 

7 progression to the most senior acquisition positions. The head of 

8 each executive agency shall make available information on those 

9 career paths. 

10 (B) CRITICAL DUTIES AND TASKS.—For each career path, the 

11 head of each executive agency shall identify the critical acquisition12 related duties and tasks in which, at minimum, employees of the 

13 agency in the career path shall be competent to perform at full 

14 performance grade levels. For this purpose, the head of the execu15 tive agency shall provide appropriate coverage of the critical duties 

16 and tasks identified by the Director of the Federal Acquisition In17 stitute. 

18 (C) MANDATORY TRAINING AND EDUCATION.—For each career 

19 path, the head of each executive agency shall establish require20 ments for the completion of course work and related on-the-job 

21 training in the critical acquisition-related duties and tasks of the 

22 career path. The head of each executive agency also shall encour23 age employees to maintain the currency of their acquisition knowl24 edge and generally enhance their knowledge of related acquisition 

25 management disciplines through academic programs and other 

26 self-developmental activities. 

27 (2) PERFORMANCE INCENTIVES.—The head of each executive agency 

28 shall provide for an enhanced system of incentives to encourage excel29 lence in the acquisition workforce that rewards performance of employ30 ees who contribute to achieving the agency’s performance goals. The 

31 system of incentives shall include provisions that—

32 (A) relate pay to performance (including the extent to which the 

33 performance of personnel in the workforce contributes to achieving 

34 the cost goals, schedule goals, and performance goals established 

35 for acquisition programs pursuant to section 3104(b) of this title); 

36 and 

37 (B) provide for consideration, in personnel evaluations and pro38 motion decisions, of the extent to which the performance of per39 sonnel in the workforce contributes to achieving the cost goals, 

40 schedule goals, and performance goals. 

41 (g) QUALIFICATION REQUIREMENTS.—
33

•HR 4320 IH 

1 (1) IN GENERAL.—Subject to paragraph (2), the Administrator 

2 shall—

3 (A) establish qualification requirements, including education re4 quirements, for—

5 (i) entry-level positions in the General Schedule Con6 tracting series (GS–1102); 

7 (ii) senior positions in the General Schedule Contracting 

8 series (GS–1102); 

9 (iii) all positions in the General Schedule Purchasing series 

10 (GS–1105); and 

11 (iv) positions in other General Schedule series in which sig12 nificant acquisition-related functions are performed; and 

13 (B) prescribe the manner and extent to which the requirements 

14 shall apply to an individual serving in a position described in sub15 paragraph (A) at the time the requirements are established. 

16 (2) RELATIONSHIP TO REQUIREMENTS APPLICABLE TO DEFENSE AC17 QUISITION WORKFORCE.—The Administrator shall establish qualifica18 tion requirements and make prescriptions under paragraph (1) that are 

19 comparable to those established for the same or equivalent positions 

20 pursuant to chapter 87 of title 10 with appropriate modifications. 

21 (3) APPROVAL OF REQUIREMENTS.—The Administrator shall submit 

22 any requirement established or prescription made under paragraph (1) 

23 to the Director of the Office of Personnel Management for approval. 

24 The Director is deemed to have approved the requirement or prescrip25 tion if the Director does not disapprove the requirement or prescription 

26 within 30 days after receiving it. 

27 (h) EDUCATION AND TRAINING.—

28 (1) FUNDING LEVELS.—The head of an executive agency shall set 

29 forth separately the funding levels requested for educating and training 

30 the acquisition workforce in the budget justification documents sub31 mitted in support of the President’s budget submitted to Congress 

32 under section 1105 of title 31.

33 (2) TUITION ASSISTANCE.—The head of an executive agency may 

34 provide tuition reimbursement in education (including a full-time 

35 course of study leading to a degree) in accordance with section 4107 

36 of title 5 for personnel serving in acquisition positions in the agency. 

37 (3) RESTRICTED OBLIGATION.—Amounts appropriated for education 

38 and training under this section may not be obligated for another pur39 pose. 

40 (i) TRAINING FUND.—
34

•HR 4320 IH 

1 (1) PURPOSES.—The purposes of this subsection are to ensure that 

2 the Federal acquisition workforce—

3 (A) adapts to fundamental changes in the nature of Federal 

4 Government acquisition of property and services associated with 

5 the changing roles of the Government; and 

6 (B) acquires new skills and a new perspective to enable it to 

7 contribute effectively in the changing environment of the 21st cen8 tury. 

9 (2) ESTABLISHMENT AND MANAGEMENT OF FUND.—There is an ac10 quisition workforce training fund. The Administrator of General Serv11 ices manages the fund through the Federal Acquisition Institute to 

12 support the training of the acquisition workforce of the executive agen13 cies other than the Department of Defense. The Administrator of Gen14 eral Services shall consult with the Administrator for Federal Procure15 ment Policy in managing the fund. 

16 (3) CREDITS TO FUND.—Five percent of the fees collected by execu17 tive agencies (other than the Department of Defense) under the fol18 lowing contracts shall be credited to the fund: 

19 (A) Governmentwide task and delivery-order contracts entered 

20 into under sections 4103 and 4105 of this title. 

21 (B) Governmentwide contracts for the acquisition of information 

22 technology as defined in section 11101 of title 40 and multiagency 

23 acquisition contracts for that technology authorized by section 

24 11314 of title 40. 

25 (C) multiple-award schedule contracts entered into by the Ad26 ministrator of General Services. 

27 (4) REMITTANCE BY HEAD OF EXECUTIVE AGENCY.—The head of an 

28 executive agency that administers a contract described in paragraph (3) 

29 shall remit to the General Services Administration the amount required 

30 to be credited to the fund with respect to the contract at the end of 

31 each quarter of the fiscal year. 

32 (5) AMOUNTS NOT TO BE USED FOR OTHER PURPOSES.—The Ad33 ministrator of General Services, through the Office of Federal Acquisi34 tion Policy, shall ensure that amounts collected for training under this 

35 subsection are not used for a purpose other than the purpose specified 

36 in paragraph (1). 

37 (6) AMOUNTS ARE IN ADDITION TO OTHER AMOUNTS FOR EDU38 CATION AND TRAINING.—Amounts credited to the fund are in addition 

39 to amounts requested and appropriated for education and training re40 ferred to in subsection (h)(1). 
35

•HR 4320 IH 

1 (7) AVAILABILITY OF AMOUNTS.—Amounts credited to the fund re2 main available to be expended only in the fiscal year for which they 

3 are credited and the two succeeding fiscal years. 

4 (8) EXCEPTION.—This subsection does not apply to the acquisition 

5 workforce of the Department of Defense. Fees charged to the Depart6 ment of Defense under contracts covered by this subsection shall be re7 duced by five percent to reflect the Department’s nonparticipation in 

8 the fund. 

9 (9) EXPIRATION.—This subsection ceases to be effective five years 

10 after November 24, 2003. 

11 (j) RECRUITMENT PROGRAM.—

12 (1) SHORTAGE CATEGORY POSITIONS.—For purposes of sections 

13 3304, 5333, and 5753 of title 5, the head of a department or agency 

14 of the Federal Government (other than the Secretary of Defense) may 

15 determine, under regulations prescribed by the Office of Personnel 

16 Management, that certain Federal acquisition positions (as described in 

17 subsection (g)(1)(A)) are shortage category positions in order to use 

18 the authorities in those sections to recruit and appoint highly qualified 

19 individuals directly to those positions in the department or agency. 

20 (2) REPORT.—Not later than March 31, 2007, the Director of the 

21 Office of Personnel Management, in consultation with the Adminis22 trator for Federal Procurement Policy, shall submit to Congress a re23 port on the implementation of this subsection. The report shall in24 clude—

25 (A) a list of the departments and agencies that exercised the au26 thority provided in this subsection and whether the exercise of the 

27 authority was carried out in accordance with the regulations of the 

28 Office; 

29 (B) the Director’s assessment of the efficacy of the exercise of 

30 the authority provided in this subsection in attracting employees 

31 with unusually high qualifications to the acquisition workforce; 

32 and 

33 (C) recommendations the Director considers appropriate on 

34 whether the authority to carry out the program should be ex35 tended. 

36 (3) TERMINATION OF AUTHORITY.—The head of a department or 

37 agency may not appoint an individual to a position of employment 

38 under this subsection after September 30, 2007. 

39 § 1704. Advocates for competition 

40 (a) ESTABLISHMENT AND DESIGNATION.—
36

•HR 4320 IH 

1 (1) ESTABLISHMENT.—Each executive agency shall have an advocate 

2 for competition. 

3 (2) DESIGNATION.—The head of each executive agency shall—

4 (A) designate for the executive agency and for each procuring 

5 activity of the executive agency one officer or employee serving in 

6 a position authorized for the executive agency on July 18, 1984 

7 (other than the senior procurement executive designated pursuant 

8 to section 1702(c) of this title) to serve as the advocate for com9 petition; 

10 (B) not assign those officers or employees duties or responsibil11 ities that are inconsistent with the duties and responsibilities of 

12 the advocates for competition; and 

13 (C) provide those officers or employees with the staff or assist14 ance necessary to carry out the duties and responsibilities of the 

15 advocate for competition, such as individuals who are specialists 

16 in engineering, technical operations, contract administration, fi17 nancial management, supply management, and utilization of small 

18 and disadvantaged business concerns. 

19 (b) DUTIES AND FUNCTIONS.—The advocate for competition of an execu20 tive agency—

21 (1) is responsible for challenging barriers to, and promoting full and 

22 open competition in, the procurement of property and services by the 

23 executive agency; 

24 (2) shall review the procurement activities of the executive agency; 

25 (3) shall identify and report to the senior procurement executive of 

26 the executive agency—

27 (A) opportunities and actions taken to achieve full and open 

28 competition in the procurement activities of the executive agency; 

29 and 

30 (B) a condition or action which has the effect of unnecessarily 

31 restricting competition in the procurement actions of the executive 

32 agency;

33 (4) shall prepare and transmit to the senior procurement executive 

34 an annual report describing—

35 (A) the advocate’s activities under this section; 

36 (B) new initiatives required to increase competition; and 

37 (C) remaining barriers to full and open competition; 

38 (5) shall recommend to the senior procurement executive—

39 (A) goals and the plans for increasing competition on a fiscal 

40 year basis; and 
37

•HR 4320 IH 

1 (B) a system of personal and organizational accountability for 

2 competition, which may include the use of recognition and awards 

3 to motivate program managers, contracting officers, and others in 

4 authority to promote competition in procurement programs; and 

5 (6) shall describe other ways in which the executive agency has em6 phasized competition in programs for procurement training and re7 search. 

8 (c) RESPONSIBILITIES.—The advocate for competition for each procuring 

9 activity is responsible for promoting full and open competition, promoting 

10 the acquisition of commercial items, and challenging barriers to acquisition, 

11 including unnecessarily restrictive statements of need, unnecessarily detailed 

12 specifications, and unnecessarily burdensome contract clauses. 

13 § 1705. Personnel evaluation 

14 The head of each executive agency subject to part C of this subtitle shall 

15 ensure, with respect to the employees of that agency whose primary duties 

16 and responsibilities pertain to the award of contracts subject to the provi17 sions of the Small Business and Federal Procurement Competition En18 hancement Act of 1984 (Public Law 98–577, 98 Stat. 3066), that the per19 formance appraisal system applicable to those employees affords appropriate 

20 recognition to, among other factors, efforts to—

21 (1) increase competition and achieve cost savings through the elimi22 nation of procedures that unnecessarily inhibit full and open competi23 tion; 

24 (2) further the purposes of the Small Business and Federal Procure25 ment Competition Enhancement Act of 1984 (Public Law 98–577, 98 

26 Stat. 3066) and the Defense Procurement Reform Act of 1984 (Public 

27 Law 98–525, 98 Stat. 2588); and 

28 (3) further other objectives and purposes of the Federal acquisition 

29 system authorized by law. 

30 § 1706. Publication of proposed regulations 

31 (a) COVERED POLICIES, REGULATIONS, PROCEDURES, AND FORMS.—

32 (1) REQUIRED COMMENT PERIOD.—Except as provided in subsection 

33 (d), a procurement policy, regulation, procedure, or form (including an 

34 amendment or modification to a policy, regulation, procedure, or form) 

35 may not take effect until 60 days after it is published for public com36 ment in the Federal Register pursuant to subsection (b) if it—

37 (A) relates to the expenditure of appropriated amounts; and 

38 (B)(i) has a significant effect beyond the internal operating pro39 cedures of the agency issuing the policy, regulation, procedure, or 

40 form; or 
38

•HR 4320 IH 

1 (ii) has a significant cost or administrative impact on contrac2 tors or offerors. 

3 (2) EXCEPTION.—A policy, regulation, procedure, or form may take 

4 effect earlier than 60 days after the publication date when there are 

5 compelling circumstances for the earlier effective date, but the effective 

6 date may not be less than 30 days after the publication date. 

7 (b) PUBLICATION IN FEDERAL REGISTER AND COMMENT PERIOD.—Sub8 ject to subsection (c), the head of the agency shall have published in the 

9 Federal Register a notice of the proposed procurement policy, regulation, 

10 procedure, or form and provide for a public comment period for receiving 

11 and considering the views of all interested parties on the proposal. The 

12 length of the comment period may not be less than 30 days. 

13 (c) CONTENTS OF NOTICE.—Notice of a proposed procurement policy, 

14 regulation, procedure, or form prepared for publication in the Federal Reg15 ister shall include—

16 (1) the text of the proposal or, if it is impracticable to publish the 

17 full text of the proposal, a summary of the proposal and a statement 

18 specifying the name, address, and telephone number of the officer or 

19 employee of the executive agency from whom the full text may be ob20 tained; and 

21 (2) a request for interested parties to submit comments on the pro22 posal and the name and address of the officer or employee of the Gov23 ernment designated to receive the comments. 

24 (d) WAIVER.—The requirements of subsections (a) and (b) may be waived 

25 by the officer authorized to issue a procurement policy, regulation, proce26 dure, or form if urgent and compelling circumstances make compliance with 

27 the requirements impracticable. 

28 (e) EFFECTIVENESS OF POLICY, REGULATION, PROCEDURE, OR FORM.—

29 (1) TEMPORARY BASIS.—A procurement policy, regulation, proce30 dure, or form for which the requirements of subsections (a) and (b) 

31 are waived under subsection (d) is effective on a temporary basis if—

32 (A) a notice of the policy, regulation, procedure, or form is pub33 lished in the Federal Register and includes a statement that the 

34 policy, regulation, procedure, or form is temporary; and 

35 (B) provision is made for a public comment period of 30 days 

36 beginning on the date on which the notice is published. 

37 (2) FINAL POLICY, REGULATION, PROCEDURE, OR FORM.—After con38 sidering the comments received, the head of the agency waiving the re39 quirements of subsections (a) and (b) under subsection (d) may issue 

40 the final procurement policy, regulation, procedure, or form. 
39

•HR 4320 IH 

1 § 1707. Procurement notice 

2 (a) NOTICE REQUIREMENT.—Except as provided in subsection (b)—

3 (1) an executive agency intending to solicit bids or proposals for a 

4 contract for property or services for a price expected to exceed 

5 $10,000, but not to exceed $25,000, shall post, for not less than 10 

6 days, in a public place at the contracting office issuing the solicitation 

7 a notice of solicitation described in subsection (c); 

8 (2) an executive agency shall publish a notice of solicitation described 

9 in subsection (c) if the agency intends to—

10 (A) solicit bids or proposals for a contract for property or serv11 ices for a price expected to exceed $25,000; or 

12 (B) place an order, expected to exceed $25,000, under a basic 

13 agreement, basic ordering agreement, or similar arrangement; and 

14 (3) an executive agency awarding a contract for property or services 

15 for a price exceeding $25,000, or placing an order exceeding $25,000 

16 under a basic agreement, basic ordering agreement, or similar arrange17 ment, shall furnish for publication by the Secretary of Commerce a no18 tice announcing the award or order if there is likely to be a subcontract 

19 under the contract or order. 

20 (b) EXEMPTIONS.—

21 (1) IN GENERAL.—A notice is not required under subsection (a) if—

22 (A) the proposed procurement is for an amount not greater 

23 than the simplified acquisition threshold and is to be conducted 

24 by—

25 (i) using widespread electronic public notice of the solicita26 tion in a form that allows convenient and universal user ac27 cess through a single, Federal Government-wide point of 

28 entry; and 

29 (ii) permitting the public to respond to the solicitation elec30 tronically; 

31 (B) the notice would disclose the executive agency’s needs and 

32 disclosure would compromise national security; 

33 (C) the proposed procurement would result from acceptance 

34 of—

35 (i) an unsolicited proposal that demonstrates a unique and 

36 innovative research concept and publication of a notice of the 

37 unsolicited research proposal would disclose the originality of 

38 thought or innovativeness of the proposal or would disclose 

39 proprietary information associated with the proposal; or 

40 (ii) a proposal submitted under section 9 of the Small 

41 Business Act (15 U.S.C. 638); 
40

•HR 4320 IH 

1 (D) the procurement is made against an order placed under a 

2 requirements contract, a task order contract, or a delivery order 

3 contract; 

4 (E) the procurement is made for perishable subsistence supplies; 

5 (F) the procurement is for utility services, other than tele6 communication services, and only one source is available; 

7 (G) the procurement is for the services of an expert for use in 

8 any litigation or dispute (including any reasonably foreseeable liti9 gation or dispute) involving the Government in a trial, hearing, or 

10 proceeding before a court, administrative tribunal, or agency, or 

11 in any part of an alternative dispute resolution process, whether 

12 or not the expert is expected to testify, or 

13 (H) the procurement is by the Secretary of Homeland Security 

14 pursuant to the special procedures provided in section 833(c) of 

15 the Homeland Security Act of 2002 (6 U.S.C. 393(c)). 

16 (2) CERTAIN PROCUREMENTS.—The requirements of subsection 

17 (a)(2) do not apply to a procurement—

18 (A) under conditions described in paragraph (2), (3), (4), (5), 

19 or (7) of section 3303(a) of this title or paragraph (2), (3), (4), 

20 (5), or (7) of section 2304(c) of title 10; or 

21 (B) for which the head of the executive agency makes a deter22 mination in writing, after consultation with the Administrator for 

23 Federal Procurement Policy and the Administrator of the Small 

24 Business Administration, that it is not appropriate or reasonable 

25 to publish a notice before issuing a solicitation. 

26 (c) CONTENTS OF NOTICE.—Each notice of solicitation required by clause 

27 (1) or (2) of subsection (a) shall include—

28 (1) an accurate description of the property or services to be con29 tracted for, which description—

30 (A) shall not be unnecessarily restrictive of competition; and 

31 (B) shall include, as appropriate, the agency nomenclature, Na32 tional Stock Number or other part number and a brief description 

33 of the item’s form, fit, or function, physical dimensions, and pre34 dominant material of manufacture, or similar information that will 

35 assist a prospective contractor to make an informed business judg36 ment as to whether a copy of the solicitation should be requested; 

37 (2) provisions that—

38 (A)(i) state whether the technical data required to respond to 

39 the solicitation will not be furnished as part of the solicitation; and 

40 (ii) identify the source in the Government, if any, from which 

41 the technical data may be obtained; and 
41

•HR 4320 IH 

1 (B)(i) state whether an offeror or its product or service must 

2 meet a qualification requirement in order to be eligible for award; 

3 and, if so 

4 (ii) identify the office from which the qualification requirement 

5 may be obtained; 

6 (3) the name, business address, and telephone number of the con7 tracting officer; 

8 (4) a statement that all responsible sources may submit a bid, pro9 posal, or quotation (as appropriate) that the agency shall consider; 

10 (5) in the case of a procurement using procedures other than com11 petitive procedures, a statement of the reason justifying the use of 

12 those procedures and the identity of the intended source; and 

13 (6) in the case of a contract in an amount estimated to be greater 

14 than $25,000 but not greater than the simplified acquisition threshold, 

15 or a contract for the procurement of commercial items using special 

16 simplified procedures—

17 (A) a description of the procedures to be used in awarding the 

18 contract; and 

19 (B) a statement specifying the periods for prospective offerors 

20 and the contracting officer to take the necessary preaward and 

21 award actions. 

22 (d) PUBLICATION OF NOTICE OF SOLICITATION OR AWARD.—

23 (1) NOTICE OF SOLICITATION.—

24 (A) MEANS OF PUBLICATION.—A notice of solicitation required 

25 to be published under subsection (a) may be published—

26 (i) by electronic means that meets the requirements for ac27 cessibility under subparagraph (B); or 

28 (ii) by the Secretary of Commerce in the Commerce Busi29 ness Daily. 

30 (B) ACCESSIBILITY REQUIREMENTS MET.—A publication of a 

31 notice of solicitation by electronic means meets the requirements 

32 for accessibility if the notice is electronically accessible in a form 

33 that allows convenient and universal user access through the single 

34 Government-wide point of entry designated in the Federal Acquisi35 tion Regulation. 

36 (2) SECRETARY OF COMMERCE.—The Secretary of Commerce shall 

37 publish promptly in the Commerce Business Daily each notice of solici38 tation of award or order the Secretary receives under paragraph 

39 (1)(A)(ii) or subsection (a)(3) for publication in the Commerce Busi40 ness Daily. 

41 (e) TIME LIMITATIONS.—
42

•HR 4320 IH 

1 (1) ISSUING NOTICE OF SOLICITATION AND ESTABLISHING DEAD2 LINE FOR SUBMITTING BIDS AND PROPOSALS.—An executive agency re3 quired by subsection (a)(2) to publish a notice of solicitation may not—

4 (A) issue the solicitation earlier than 15 days after the date on 

5 which the notice is published; or 

6 (B) in the case of a contract or order expected to be greater 

7 than the simplified acquisition threshold, establish a deadline for 

8 the submission of all bids or proposals in response to the notice 

9 required by subsection (a)(2) that—

10 (i) in the case of a solicitation for research and develop11 ment, is earlier than 45 days after the date the notice re12 quired for a bid or proposal for a contract described in sub13 section (a)(2)(A) is published; 

14 (ii) in the case of an order under a basic agreement, basic 

15 ordering agreement, or similar arrangement, is earlier than 

16 30 days after the date the notice required for an order de17 scribed in subsection (a)(2)(B) is published; or 

18 (iii) in any other case, is earlier than 30 days after the 

19 date the solicitation is issued. 

20 (2) ESTABLISHING DEADLINE WHEN NONE PROVIDED BY STAT21 UTE.—An executive agency shall establish a deadline for the submis22 sion of all bids or proposals in response to a solicitation for which a 

23 deadline is not provided by statute. Each deadline for the submission 

24 of offers shall afford potential offerors a reasonable opportunity to re25 spond. 

26 (3) FLEXIBLE DEADLINES.—The Administrator for Federal Procure27 ment Policy shall prescribe regulations defining limited circumstances 

28 in which flexible deadlines can be used under paragraph (1) for the 

29 issuance of solicitations and the submission of bids or proposals for the 

30 procurement of commercial items. 

31 (f) CONSIDERATION OF CERTAIN TIMELY RECEIVED OFFERS.—An exec32 utive agency intending to solicit offers for a contract for which a notice of 

33 solicitation is required to be posted under subsection (a)(1) shall ensure that

34 contracting officers consider each responsive offer timely received from an 

35 offeror. 

36 (g) AVAILABILITY OF COMPLETE SOLICITATION PACKAGE AND PAYMENT

37 OF FEE.—An executive agency shall make available to a business concern, 

38 or the authorized representative of a concern, the complete solicitation pack39 age for any on-going procurement announced pursuant to a notice of solici40 tation under subsection (a) of this section. An executive agency may require 
43

•HR 4320 IH 

1 the payment of a fee, not exceeding the actual cost of duplication, for a copy 

2 of the package. 

3 § 1708. Contracting functions performed by Federal per4 sonnel 

5 (a) COVERED PERSONNEL.—Personnel referred to in subsection (b) are—

6 (1) an employee, as defined in section 2105 of title 5; 

7 (2) a member of the armed forces; and 

8 (3) an individual assigned to a Federal agency pursuant to sub9 chapter VI of chapter 33 of title 5. 

10 (b) LIMITATION ON PAYMENT FOR ADVISORY AND ASSISTANCE SERV11 ICES.—An executive agency may not pay an individual not described in sub12 section (a) for services to conduct evaluations or analyses of any aspect of 

13 a proposal submitted for an acquisition unless personnel described in sub14 section (a) with adequate training and capabilities to perform the evalua15 tions and analyses are not readily available in the agency or another Federal 

16 agency. When administering this subsection, the head of each executive 

17 agency shall determine in accordance with standards and procedures pre18 scribed in the Federal Acquisition Regulation whether—

19 (1) a sufficient number of personnel described in subsection (a) in 

20 the agency or another Federal agency are readily available to perform 

21 a particular evaluation or analysis for the head of the executive agency 

22 making the determination; and 

23 (2) the readily available personnel have the training and capabilities 

24 necessary to perform the evaluation or analysis. 

25 (c) CERTAIN RELATIONSHIP NOT AFFECTED.—This section does not af26 fect the relationship between the Federal Government and a Federally fund27 ed research and development center. 

28 § 1709. Value engineering 

29 Each executive agency shall establish and maintain cost-effective proce30 dures and processes for analyzing the functions of a program, project, sys31 tem, product, item of equipment, building, facility, service, or supply of the 

32 agency. The analysis shall be—

33 (1) performed by qualified agency or contractor personnel; and 

34 (2) directed at improving performance, reliability, quality, safety, 

35 and life cycle costs. 

36 § 1710. Record requirements 

37 (a) MAINTAINING RECORDS ON COMPUTER.—Each executive agency shall 

38 establish and maintain for five years a computer file, by fiscal year, con39 taining unclassified records of all procurements greater than the simplified 

40 acquisition threshold in that fiscal year. 
44

•HR 4320 IH 

1 (b) CONTENTS.—The record established under subsection (a) shall in2 clude, with respect to each procurement carried out using—

3 (1) competitive procedures—

4 (A) the date of contract award; 

5 (B) information identifying the source to whom the contract was 

6 awarded; 

7 (C) the property or services the Federal Government obtains 

8 under the procurement; and 

9 (D) the total cost of the procurement; or 

10 (2) procedures other than competitive procedures—

11 (A) the information described in subclauses (A)–(D) of clause 

12 (1); 

13 (B) the reason under section 3303(a) of this title or section 

14 2304(c) of title 10 for using the procedures; and 

15 (C) the identity of the organization or activity that conducted 

16 the procurement. 

17 (c) SEPARATE RECORD CATEGORY FOR PROCUREMENTS RESULTING IN

18 ONE BID OR PROPOSAL.—Information included in a record pursuant to 

19 subsection (b)(1) that relates to procurements resulting in the submission 

20 of a bid or proposal by only one responsible source shall be separately cat21 egorized from the information relating to other procurements included in 

22 the record. The record of that information shall be designated ‘‘noncompeti23 tive procurements using competitive procedures’’. 

24 (d) TRANSMISSION AND DATA SYSTEM ENTRY OF INFORMATION.—Infor25 mation included in the record established and maintained under subsection 

26 (a) shall be transmitted to the Administrator of General Services and shall 

27 be entered in the Federal Procurement Data System referred to in section 

28 1122(a)(4) of this title. 

29 § 1711. Procurement data 

30 (a) DEFINITIONS.—In this section—

31 (1) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.—The term 

32 ‘‘qualified HUBZone small business concern’’ has the meaning given 

33 that term in section 3(p) of the Small Business Act (15 U.S.C. 

34 632(p)). 

35 (2) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY SO36 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.—The term 

37 ‘‘small business concern owned and controlled by socially and economi38 cally disadvantaged individuals’’ has the meaning given that term in 

39 section 8(d) of the Small Business Act (15 U.S.C. 637(d)). 

40 (3) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY

41 WOMEN.—The term ‘‘small business concern owned and controlled by 
45

•HR 4320 IH 

1 women’’ has the meaning given that term in section 8(d) of the Small 

2 Business Act (15 U.S.C. 637(d)) and section 204 of the Women’s 

3 Business Ownership Act of 1988 (Public Law 100–533, 102 Stat. 

4 9692). 

5 (b) REPORTING.—Each Federal agency shall report to the Office of Fed6 eral Procurement Policy the number of qualified HUBZone small business 

7 concerns, the number of small businesses owned and controlled by women, 

8 and the number of small business concerns owned and controlled by socially 

9 and economically disadvantaged businesses, by gender, that are first time 

10 recipients of contracts from the agency. The Office shall take appropriate 

11 action to ascertain for each fiscal year the number of those small businesses 

12 that have newly entered the Federal market. 

13 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 provisions 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.

14 § 1901. Simplified acquisition procedures 

15 (a) WHEN PROCEDURES ARE TO BE USED.—To promote efficiency and 

16 economy in contracting and to avoid unnecessary burdens for agencies and 

17 contractors, the Federal Acquisition Regulation shall provide for special 

18 simplified procedures for purchases of property and services for amounts—

19 (1) not greater than the simplified acquisition threshold; and 

20 (2) greater than the simplified acquisition threshold but not greater 

21 than $5,000,000 with respect to which the contracting officer reason22 ably expects, based on the nature of the property or services sought 

23 and on market research, that offers will include only commercial items. 

24 (b) PROHIBITION ON DIVIDING PURCHASES.—A proposed purchase or 

25 contract for an amount above the simplified acquisition threshold may not 

26 be divided into several purchases or contracts for lesser amounts to use the 

27 simplified acquisition procedures required by subsection (a).

28 (c) PROMOTION OF COMPETITION REQUIRED.—When using simplified ac29 quisition procedures, the head of an executive agency shall promote competi30 tion to the maximum extent practicable. 

31 (d) CONSIDERATION OF OFFERS TIMELY RECEIVED.—The simplified ac32 quisition procedures contained in the Federal Acquisition Regulation shall 

33 include a requirement that a contracting officer consider each responsive 

34 offer timely received from an eligible offeror. 
46

•HR 4320 IH 

1 (e) REPORT.—Until October 1, 2004, procuring activities shall continue 

2 to report under section 1710 of this title procurement awards of at least 

3 $25,000, but less than $100,000, in conformity with the procedures for the 

4 reporting of a contract award greater than $25,000 that were in effect on 

5 October 1, 1992. 

6 (f) SPECIAL RULES FOR COMMERCIAL ITEMS.—The Federal Acquisition 

7 Regulation shall provide that an executive agency using special simplified 

8 procedures to purchase commercial items—

9 (1) shall publish a notice in accordance with section 1707 of this title 

10 and, as provided in section 1707(c)(4) of this title, permit all respon11 sible sources to submit a bid, proposal, or quotation (as appropriate) 

12 that the agency shall consider; 

13 (2) may not conduct the purchase on a sole source basis unless the 

14 need to do so is justified in writing and approved in accordance with 

15 section 2304 of title 10 or sections 3106 and 3301–3304 of this title; 

16 and 

17 (3) shall include in the contract file a written description of the pro18 cedures used in awarding the contract and the number of offers re19 ceived. 

20 § 1902. Procedures applicable to purchases below micro-pur21 chase threshold 

22 (a) DEFINITION.—For purposes of this section, the micro-purchase 

23 threshold is $2,500. 

24 (b) COMPLIANCE WITH CERTAIN REQUIREMENTS AND NONAPPLICA25 BILITY OF CERTAIN AUTHORITY.—

26 (1) COMPLIANCE WITH CERTAIN REQUIREMENTS.—When awarding a 

27 contract with a price exceeding the micro-purchase threshold, the head 

28 of each executive agency shall ensure that procuring activities of that 

29 agency comply with the requirements of section 8(a) of the Small Busi30 ness Act (15 U.S.C. 637(a)), section 2323 of title 10, and section 7102 

31 of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–

32 355, 15 U.S.C. 644 note). 

33 (2) NONAPPLICABILITY OF CERTAIN AUTHORITY.—The authority 

34 under part 13.106(a)(1) of the Federal Acquisition Regulation (48 

35 C.F.R. 13.106(a)(1)), as in effect on November 18, 1993, to make pur36 chases without securing competitive quotations does not apply to a pur37 chase with a price exceeding the micro-purchase threshold. 

38 (c) NONAPPLICABILITY OF CERTAIN PROVISIONS.—An executive agency 

39 purchase with an anticipated value of the micro-purchase threshold or less 

40 is not subject to section 15(j) of the Small Business Act (15 U.S.C. 644(j)) 

41 and chapter 83 of this title. 
47

•HR 4320 IH 

1 (d) PURCHASES WITHOUT COMPETITIVE QUOTATIONS.—A purchase not 

2 greater than $2,500 may be made without obtaining competitive quotations 

3 if an authorized employee of an executive agency or an authorized member 

4 of the armed forces determines that the price for the purchase is reasonable. 

5 (e) EQUITABLE DISTRIBUTION.—Purchases not greater than $2,500 shall 

6 be distributed equitably among qualified suppliers. 

7 (f) IMPLEMENTATION THROUGH FEDERAL ACQUISITION REGULATION.—

8 This section shall be implemented through the Federal Acquisition Regula9 tion. 

10 § 1903. Special emergency procurement authority 

11 (a) APPLICABILITY.—The authorities provided in subsections (b) and (c) 

12 apply with respect to a procurement of property or services by or for an 

13 executive agency that the head of the executive agency determines are to 

14 be used—

15 (1) in support of a contingency operation (as defined in section 

16 101(a) of title 10); or 

17 (2) to facilitate the defense against or recovery from nuclear, biologi18 cal, chemical, or radiological attack against the United States. 

19 (b) INCREASED THRESHOLDS AND LIMITATION.—For a procurement to 

20 which this section applies under subsection (a)—

21 (1) the amount specified in section 1902(a), (d), and (e) shall be 

22 deemed to be $15,000; 

23 (2) the term ‘‘simplified acquisition threshold’’ means—

24 (A) $250,000 in the case of a contract to be awarded and per25 formed, or purchase to be made, in the United States; and 

26 (B) $500,000 in the case of a contract to be awarded and per27 formed, or purchase to be made, outside the United States; and 

28 (3) the $5,000,000 limitation in sections 1901(a)(2) and 3304(a)(2) 

29 of this title and section 2304(g)(1)(B) of title 10 is deemed to be 

30 $10,000,000. 

31 (c) AUTHORITY TO TREAT PROPERTY OR SERVICE AS COMMERCIAL

32 ITEM.—

33 (1) IN GENERAL.—The head of an executive agency carrying out a 

34 procurement of property or a service to which this section applies under 

35 subsection (a)(2) may treat the property or service as a commercial 

36 item for the purpose of carrying out the procurement. 

37 (2) CERTAIN CONTRACTS NOT EXEMPT FROM STANDARDS OR RE38 QUIREMENTS.—A contract in an amount of more than $15,000,000 

39 that is awarded on a sole source basis for an item or service treated 

40 as a commercial item under paragraph (1) is not exempt from—
48

•HR 4320 IH 

1 (A) cost accounting standards prescribed under section 1502 of 

2 this title; or 

3 (B) cost or pricing data requirements (commonly referred to as 

4 truth in negotiating) under chapter 35 of this title or section 

5 2306a of title 10. 

6 § 1904. Certain transactions for defense against attack 

7 (a) AUTHORITY.—

8 (1) IN GENERAL.—The head of an executive agency that engages in 

9 basic research, applied research, advanced research, and development 

10 projects that are necessary to the responsibilities of the executive agen11 cy in the field of research and development and have the potential to 

12 facilitate defense against or recovery from terrorism or nuclear, biologi13 cal, chemical, or radiological attack may exercise the same authority 

14 (subject to the same restrictions and conditions) with respect to the re15 search and projects as the Secretary of Defense may exercise under 

16 section 2371 of title 10, except for subsections (b) and (f) of section 

17 2371. 

18 (2) PROTOTYPE PROJECTS.—The head of an executive agency, under 

19 the authority of paragraph (1), may carry out prototype projects that 

20 meet the requirements of paragraph (1) in accordance with the require21 ments and conditions provided for carrying out prototype projects 

22 under section 845 of the National Defense Authorization Act for Fiscal 

23 Year 1994 (Public Law 103–160, 10 U.S.C. 2371 note), including 

24 that, to the maximum extent practicable, competitive procedures shall 

25 be used when entering into agreements to carry out projects under sec26 tion 845(a) and that the period of authority to carry out projects under 

27 section 845(a) terminates as provided in section 845(g) of the Act. 

28 (3) APPLICATION OF REQUIREMENTS AND CONDITIONS.—In applying 

29 the requirements and conditions of section 845 of the Act under this 

30 subsection—

31 (A) section 845(c) shall apply with respect to prototype projects 

32 carried out under paragraph (2); and 

33 (B) the Director of the Office of Management and Budget shall 

34 perform the functions of the Secretary of Defense under section 

35 845(d) of the Act.

36 (4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES.—

37 (A) OFFICE OF MANAGEMENT AND BUDGET.—The head of an 

38 executive agency may exercise authority under this subsection for 

39 a project only if authorized by the Director. 
49

•HR 4320 IH 

1 (B) DEPARTMENT OF HOMELAND SECURITY.—Authority under 

2 this subsection does not apply to the Secretary of Homeland Secu3 rity while section 391 of title 6 is in effect. 

4 (b) REGULATIONS.—The Director shall prescribe regulations to carry out 

5 this section. No transaction may be conducted under the authority of this 

6 section before the regulations take effect. 

7 (c) ANNUAL REPORT.—The annual report of the head of an executive 

8 agency that is required under section 2371(h) of title 10, as applied to the 

9 head of the executive agency by subsection (a), shall be submitted to the 

10 Committee on Governmental Affairs of the Senate and the Committee on 

11 Government Reform of the House of Representatives. 

12 (d) TERMINATION OF AUTHORITY.—The authority to carry out trans13 actions under subsection (a) terminates on September 30, 2008. 

14 § 1905. List of provisions of laws inapplicable to contracts or 

15 subcontracts not greater than simplified acquisi16 tion threshold 

17 (a) INCLUSION IN FEDERAL ACQUISITION REGULATION.—

18 (1) IN GENERAL.—The Federal Acquisition Regulation shall include 

19 a list of provisions of laws that are inapplicable to contracts or sub20 contracts in amounts not greater than the simplified acquisition thresh21 old. A provision of law properly included on the list pursuant to para22 graph (2) does not apply to contracts or subcontracts in amounts not 

23 greater than the simplified acquisition threshold that are made by an 

24 executive agency. This section does not render a provision of law not 

25 included on the list inapplicable to contracts and subcontracts in 

26 amounts not greater than the simplified acquisition threshold. 

27 (2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of law 

28 described in subsection (b) that is enacted after October 13, 1994, shall 

29 be included on the list of inapplicable provisions of laws required by 

30 paragraph (1) unless the Federal Acquisition Regulatory Council makes 

31 a written determination that it would not be in the best interest of the 

32 Federal Government to exempt contracts or subcontracts in amounts 

33 not greater than the simplified acquisition threshold from the applica34 bility of the provision. 

35 (b) COVERED LAW.—A provision of law referred to in subsection (a)(2) 

36 is a provision of law that the Council determines sets forth policies, proce37 dures, requirements, or restrictions for the procurement of property or serv38 ices by the Government, except for a provision of law that—

39 (1) provides for criminal or civil penalties; or 
50

•HR 4320 IH 

1 (2) specifically refers to this section and provides that, notwith2 standing this section, it shall be applicable to contracts or subcontracts 

3 in amounts not greater than the simplified acquisition threshold. 

4 (c) PETITION.—A person may petition the Administrator for Federal Pro5 curement Policy to take appropriate action when a provision of law de6 scribed in subsection (b) is not included on the list of inapplicable provisions 

7 of law as required by subsection (a) and the Council has not made a written 

8 determination pursuant to subsection (a)(2). The Administrator shall revise 

9 the Federal Acquisition Regulation to include the provision on the list of 

10 inapplicable provisions of law unless the Council makes a determination pur11 suant to subsection (a)(2) within 60 days after the petition is received. 

12 § 1906. List of laws inapplicable to procurements of commer13 cial items 

14 (a) CONTRACTS.—

15 (1) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The Fed16 eral Acquisition Regulation shall include a list of provisions of law that 

17 are inapplicable to contracts for the procurement of commercial items. 

18 A provision of law properly included on the list pursuant to paragraph 

19 (2) does not apply to purchases of commercial items by an executive 

20 agency. This section does not render a provision of law not included 

21 on the list inapplicable to contracts for the procurement of commercial 

22 items. 

23 (2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of law 

24 described in subsection (c) that is enacted after October 13, 1994, shall 

25 be included on the list of inapplicable provisions of law required by 

26 paragraph (1) unless the Federal Acquisition Regulatory Council makes 

27 a written determination that it would not be in the best interest of the 

28 Federal Government to exempt contracts for the procurement of com29 mercial items from the applicability of the provision. 

30 (b) SUBCONTRACTS.—

31 (1) DEFINITION.—In this subsection, the term ‘‘subcontract’’ in32 cludes a transfer of commercial items between divisions, subsidiaries, 

33 or affiliates of a contractor or subcontractor. 

34 (2) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The Fed35 eral Acquisition Regulation shall include a list of provisions of law that 

36 are inapplicable to subcontracts under a contract or subcontract for the 

37 procurement of commercial items. A provision of law properly included 

38 on the list pursuant to paragraph (3) does not apply to those sub39 contracts. This section does not render a provision of law not included 

40 on the list inapplicable to subcontracts under a contract for the pro41 curement of commercial items. 
51

•HR 4320 IH 

1 (3) PROVISIONS TO BE EXCLUDED FROM LIST.—A provision of law 

2 described in subsection (c) shall be included on the list of inapplicable 

3 provisions of law required by paragraph (2) unless the Federal Acquisi4 tion Regulatory Council makes a written determination that it would 

5 not be in the best interest of the Federal Government to exempt sub6 contracts under a contract for the procurement of commercial items 

7 from the applicability of the provision. 

8 (4) WAIVER NOT AUTHORIZED.—This subsection does not authorize 

9 the waiver of the applicability of any provision of law with respect to 

10 any subcontract under a contract with a prime contractor reselling or 

11 distributing commercial items of another contractor without adding 

12 value. 

13 (c) COVERED LAW.—A provision of law referred to in subsections (a)(2) 

14 and (b) is a provision of law that the Council determines sets forth policies, 

15 procedures, requirements, or restrictions for the procurement of property or 

16 services by the Government, except for a provision of law that—

17 (1) provides for criminal or civil penalties; or 

18 (2) specifically refers to this section and provides that, notwith19 standing this section, it shall be applicable to contracts for the procure20 ment of commercial items. 

21 (d) PETITION.—A person may petition the Administrator for Federal 

22 Procurement Policy to take appropriate action when a provision of law de23 scribed in subsection (c) is not included on the list of inapplicable provisions 

24 of law as required by subsection (a) or (b) and the Council has not made 

25 a written determination pursuant to subsection (a)(2) or (b)(3). The Admin26 istrator shall revise the Federal Acquisition Regulation to include the provi27 sion on the list of inapplicable provisions of law unless the Council makes 

28 a determination pursuant to subsection (a)(2) or (b)(3) within 60 days after 

29 the petition is received. 

30 § 1907. List of laws inapplicable to procurements of commer31 cially available off-the-shelf items 

32 (a) DEFINITION.—As used in this section, the term ‘‘commercially avail33 able off-the-shelf item’’—

34 (1) means an item that—

35 (A) is a commercial item (as described in section 103 of this 

36 title); 

37 (B) is sold in substantial quantities in the commercial market38 place; and

39 (C) is offered to the Federal Government, without modification, 

40 in the same form in which it is sold in the commercial market41 place; but 
52

•HR 4320 IH 

1 (2) does not include bulk cargo, as defined in section 3 of the Ship2 ping Act of 1984 (46 App. U.S.C. 1702), such as agricultural products 

3 and petroleum products. 

4 (b) INCLUSION IN FEDERAL ACQUISITION REGULATION.—

5 (1) IN GENERAL.—The Federal Acquisition Regulation shall include 

6 a list of provisions of law that are inapplicable to contracts for the pro7 curement of commercially available off-the-shelf items. A provision of 

8 law properly included on the list pursuant to paragraph (2) does not 

9 apply to contracts for the procurement of commercially available off10 the-shelf items. This section does not render a provision of law not in11 cluded on the list inapplicable to contracts for the procurement of com12 mercially available off-the-shelf items. 

13 (2) LAWS TO BE INCLUDED.—A provision of law described in sub14 section (c) shall be included on the list of inapplicable provisions of law 

15 required by paragraph (1) unless the Administrator for Federal Pro16 curement Policy makes a written determination that it would not be 

17 in the best interest of the Federal Government to exempt contracts for 

18 the procurement of commercially available off-the-shelf items from the 

19 applicability of the provision. 

20 (3) OTHER AUTHORITIES OR RESPONSIBILITIES NOT AFFECTED.—

21 This section does not modify, supersede, impair, or restrict authorities 

22 or responsibilities under—

23 (A) section 15 of the Small Business Act (15 U.S.C. 644); or 

24 (B) bid protest procedures developed under the authority of—

25 (i) subchapter V of chapter 35 of title 31; 

26 (ii) section 2305(e) and (f) of title 10; or 

27 (iii) sections 3706 and 3707 of this title. 

28 (c) COVERED LAW.—Except as provided in subsection (b)(3), a provision 

29 of law referred to in subsection (b)(1) is a provision of law that the Admin30 istrator determines imposes Government-unique policies, procedures, re31 quirements, or restrictions for the procurement of property or services on 

32 persons whom the Government has awarded contracts for the procurement 

33 of commercially available off-the-shelf items, except for a provision of law 

34 that—

35 (1) provides for criminal or civil penalties; or 

36 (2) specifically refers to this section and provides that, notwith37 standing this section, it shall be applicable to contracts for the procure38 ment of commercially available off-the-shelf items.

39 CHAPTER 21—RESTRICTIONS ON OBTAINING AND 

40 DISCLOSING CERTAIN INFORMATION

Sec. 

2101. Definitions. 
53

•HR 4320 IH 

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.

1 § 2101. Definitions 

2 In this chapter—

3 (1) CONTRACTING OFFICER.—The term ‘‘contracting officer’’ means 

4 an individual who, by appointment in accordance with applicable regu5 lations, may enter into a Federal agency procurement contract on be6 half of the Federal Government and to make determinations and find7 ings with respect to the contract. 

8 (2) CONTRACTOR BID OR PROPOSAL INFORMATION.—The term ‘‘con9 tractor bid or proposal information’’ means any of the following infor10 mation submitted to a Federal agency as part of, or in connection with, 

11 a bid or proposal to enter into a Federal agency procurement contract, 

12 if that information previously has not been made available to the public 

13 or disclosed publicly: 

14 (A) Cost or pricing data (as defined in section 2306a(h) of title 

15 10 with respect to procurements subject to that section and sec16 tion 3501 of this title with respect to procurements subject to that 

17 section). 

18 (B) Indirect costs and direct labor rates. 

19 (C) Proprietary information about manufacturing processes, op20 erations, or techniques marked by the contractor in accordance 

21 with applicable law or regulation. 

22 (D) Information marked by the contractor as ‘‘contractor bid or 

23 proposal information’’, in accordance with applicable law or regu24 lation. 

25 (3) FEDERAL AGENCY.—The term ‘‘Federal agency’’ has the mean26 ing given the term ‘‘federal agency’’ in section 102 of title 40. 

27 (4) FEDERAL AGENCY PROCUREMENT.—The term ‘‘Federal agency 

28 procurement’’ means a Federal agency acquiring goods or services (in29 cluding construction) from non-Federal sources by using competitive 

30 procedures and appropriated amounts and awarding a contract. 

31 (5) OFFICIAL.—The term ‘‘official’’ means—

32 (A) an officer, as defined in section 2104 of title 5; 

33 (B) an employee, as defined in section 2105 of title 5; and 

34 (C) a member of the uniformed services, as defined in section 

35 2101(3) of title 5. 

36 (6) PROTEST.—The term ‘‘protest’’ means a written objection by an 

37 interested party to the award or proposed award of a Federal agency 
54

•HR 4320 IH 

1 procurement contract, pursuant to subchapter V of chapter 35 of title 

2 31. 

3 (7) SOURCE SELECTION INFORMATION.—The term ‘‘source selection 

4 information’’ means any of the following information prepared for use 

5 by a Federal agency to evaluate a bid or proposal to enter into a Fed6 eral agency procurement contract, if that information previously has 

7 not been made available to the public or disclosed publicly: 

8 (A) Bid prices submitted in response to a Federal agency solici9 tation for sealed bids, or lists of those bid prices before public bid 

10 opening. 

11 (B) Proposed costs or prices submitted in response to a Federal 

12 agency solicitation, or lists of those proposed costs or prices. 

13 (C) Source selection plans. 

14 (D) Technical evaluation plans. 

15 (E) Technical evaluations of proposals. 

16 (F) Cost or price evaluations of proposals. 

17 (G) Competitive range determinations that identify proposals 

18 that have a reasonable chance of being selected for award of a 

19 contract. 

20 (H) Rankings of bids, proposals, or competitors. 

21 (I) Reports and evaluations of source selection panels, boards, 

22 or advisory councils. 

23 (J) Other information marked as ‘‘source selection information’’ 

24 based on a case-by-case determination by the head of the agency, 

25 the head’s designee, or the contracting officer that its disclosure 

26 would jeopardize the integrity or successful completion of the Fed27 eral agency procurement to which the information relates. 

28 § 2102. Prohibitions on disclosing and obtaining procure29 ment information 

30 (a) PROHIBITION ON DISCLOSING PROCUREMENT INFORMATION.—

31 (1) IN GENERAL.—Except as provided by law, an individual de32 scribed in paragraph (3) shall not knowingly disclose contractor bid or 

33 proposal information or source selection information before the award 

34 of a Federal agency procurement contract to which the information re35 lates. 

36 (2) EMPLOYEE OF PRIVATE SECTOR ORGANIZATION.—In addition to 

37 the restriction in paragraph (1), an employee of a private sector organi38 zation assigned to an agency under chapter 37 of title 5 shall not 

39 knowingly disclose contractor bid or proposal information or source se40 lection information during the three-year period after the employee’s 

41 assignment ends, except as provided by law. 
55

•HR 4320 IH 

1 (3) APPLICATION.—Paragraph (1) applies to an individual who—

2 (A)(i) is a present or former official of the Federal Government; 

3 or 

4 (ii) is acting or has acted for or on behalf of, or who is advising 

5 or has advised the Government with respect to, a Federal agency 

6 procurement; and 

7 (B) by virtue of that office, employment, or relationship has or 

8 had access to contractor bid or proposal information or source se9 lection information. 

10 (b) PROHIBITION ON OBTAINING PROCUREMENT INFORMATION.—Except 

11 as provided by law, a person shall not knowingly obtain contractor bid or 

12 proposal information or source selection information before the award of a 

13 Federal agency procurement contract to which the information relates. 

14 § 2103. Actions required of procurement officers when con15 tacted regarding non-Federal employment 

16 (a) ACTIONS REQUIRED.—An agency official participating personally and 

17 substantially in a Federal agency procurement for a contract in excess of 

18 the simplified acquisition threshold who contacts or is contacted by a bidder 

19 or offeror in that Federal agency procurement regarding possible non-Fed20 eral employment for that official shall—

21 (1) promptly report the contact in writing to the official’s supervisor 

22 and to the designated agency ethics official (or designee) of the agency 

23 in which the official is employed; and 

24 (2)(A) reject the possibility of non-Federal employment; or 

25 (B) disqualify himself or herself from further personal and substan26 tial participation in that Federal agency procurement until the agency 

27 authorizes the official to resume participation in the procurement, in 

28 accordance with the requirements of section 208 of title 18 and appli29 cable agency regulations on the grounds that—

30 (i) the person is no longer a bidder or offeror in that Federal 

31 agency procurement; or 

32 (ii) all discussions with the bidder or offeror regarding possible 

33 non-Federal employment have terminated without an agreement or 

34 arrangement for employment. 

35 (b) RETENTION OF REPORTS.—The agency shall retain each report re36 quired by this section for not less than two years following the submission 

37 of the report. The reports shall be made available to the public on request, 

38 except that any part of a report that is exempt from the disclosure require39 ments of section 552 of title 5 under section 552(b)(1) may be withheld 

40 from disclosure to the public. 
56

•HR 4320 IH 

1 (c) PERSONS SUBJECT TO PENALTIES.—The following are subject to the 

2 penalties and administrative actions set forth in section 2105 of this title: 

3 (1) An official who knowingly fails to comply with the requirements 

4 of this section. 

5 (2) A bidder or offeror that engages in employment discussions with 

6 an official who is subject to the restrictions of this section, knowing 

7 that the official has not complied with clause (1) or (2) of subsection 

8 (a). 

9 § 2104. Prohibition on former official’s acceptance of com10 pensation from contractor 

11 (a) PROHIBITION.—A former official of a Federal agency may not accept 

12 compensation from a contractor as an employee, officer, director, or consult13 ant of the contractor within one year after the official—

14 (1) served, when the contractor was selected or awarded a contract, 

15 as the procuring contracting officer, the source selection authority, a 

16 member of the source selection evaluation board, or the chief of a fi17 nancial or technical evaluation team in a procurement in which that 

18 contractor was selected for award of a contract in excess of 

19 $10,000,000; 

20 (2) served as the program manager, deputy program manager, or ad21 ministrative contracting officer for a contract in excess of $10,000,000 

22 awarded to that contractor; or 

23 (3) personally made for the Federal agency a decision to—

24 (A) award a contract, subcontract, modification of a contract or 

25 subcontract, or a task order or delivery order in excess of 

26 $10,000,000 to that contractor; 

27 (B) establish overhead or other rates applicable to a contract for 

28 that contractor that is valued in excess of $10,000,000; 

29 (C) approve issuance of a contract payment in excess of 

30 $10,000,000 to that contractor; or 

31 (D) pay or settle a claim in excess of $10,000,000 with that 

32 contractor. 

33 (b) WHEN COMPENSATION MAY BE ACCEPTED.—Subsection (a) does not 

34 prohibit a former official of a Federal agency from accepting compensation 

35 from a division or affiliate of a contractor that does not produce the same 

36 or similar products or services as the entity of the contractor that is respon37 sible for the contract referred to in clause (1), (2), or (3) of subsection (a). 

38 (c) IMPLEMENTING REGULATIONS.—Regulations implementing this sec39 tion shall include procedures for an official or former official of a Federal 

40 agency to request advice from the appropriate designated agency ethics offi-
57

•HR 4320 IH 

1 cial regarding whether the official or former official is or would be precluded 

2 by this section from accepting compensation from a particular contractor. 

3 (d) PERSONS SUBJECT TO PENALTIES.—The following are subject to the 

4 penalties and administrative actions set forth in section 2105 of this title: 

5 (1) A former official who knowingly accepts compensation in viola6 tion of this section. 

7 (2) A contractor that provides compensation to a former official 

8 knowing that the official accepts the compensation in violation of this 

9 section. 

10 § 2105. Penalties and administrative actions 

11 (a) CRIMINAL PENALTIES.—A person that violates section 2102 of this 

12 title to exchange information covered by section 2102 for anything of value 

13 or to obtain or give a person a competitive advantage in the award of a 

14 Federal agency procurement contract shall be fined as provided under title 

15 18, imprisoned for not more than five years, or both. 

16 (b) CIVIL PENALTIES.—The Attorney General may bring a civil action in 

17 an appropriate district court of the United States against a person that vio18 lates section 2102, 2103, or 2104 of this title. On proof of the conduct by 

19 a preponderance of the evidence—

20 (1) an individual is liable to the Federal Government for a civil pen21 alty of not more than $50,000 for each violation plus twice the amount 

22 of compensation that the individual received or offered for the prohib23 ited conduct; and 

24 (2) an organization is liable to the Government for a civil penalty 

25 of not more than $500,000 for each violation plus twice the amount 

26 of compensation that the organization received or offered for the pro27 hibited conduct. 

28 (c) ADMINISTRATIVE ACTIONS.—

29 (1) TYPES OF ACTION THAT FEDERAL AGENCY MAY TAKE.—A Fed30 eral agency that receives information that a contractor or a person has 

31 violated section 2102, 2103, or 2104 of this title shall consider taking 

32 one or more of the following actions, as appropriate: 

33 (A) Canceling the Federal agency procurement, if a contract has 

34 not yet been awarded. 

35 (B) Rescinding a contract with respect to which—

36 (i) the contractor or someone acting for the contractor has 

37 been convicted for an offense punishable under subsection (a); 

38 or

39 (ii) the head of the agency that awarded the contract has 

40 determined, based on a preponderance of the evidence, that 
58

•HR 4320 IH 

1 the contractor or a person acting for the contractor has en2 gaged in conduct constituting the offense. 

3 (C) Initiating a suspension or debarment proceeding for the pro4 tection of the Government in accordance with procedures in the 

5 Federal Acquisition Regulation. 

6 (D) Initiating an adverse personnel action, pursuant to the pro7 cedures in chapter 75 of title 5 or other applicable law or regula8 tion. 

9 (2) AMOUNT GOVERNMENT ENTITLED TO RECOVER.—When a Fed10 eral agency rescinds a contract pursuant to paragraph (1)(B), the Gov11 ernment is entitled to recover, in addition to any penalty prescribed by 

12 law, the amount expended under the contract. 

13 (3) PRESENT RESPONSIBILITY AFFECTED BY CONDUCT.—For pur14 poses of a suspension or debarment proceeding initiated pursuant to 

15 paragraph (1)(C), engaging in conduct constituting an offense under 

16 section 2102, 2103, or 2104 affects the present responsibility of a Gov17 ernment contractor or subcontractor. 

18 § 2106. Reporting information believed to constitute evi19 dence of offense 

20 A person may not file a protest against the award or proposed award of 

21 a Federal agency procurement contract alleging a violation of section 2102, 

22 2103, or 2104 of this title, and the Comptroller General may not consider 

23 that allegation in deciding a protest, unless the person, no later than 14 

24 days after the person first discovered the possible violation, reported to the 

25 Federal agency responsible for the procurement the information that the 

26 person believed constitutes evidence of the offense. 

27 § 2107. Savings provisions 

28 This chapter does not—

29 (1) restrict the disclosure of information to, or its receipt by, a per30 son or class of persons authorized, in accordance with applicable agency 

31 regulations or procedures, to receive that information; 

32 (2) restrict a contractor from disclosing its own bid or proposal in33 formation or the recipient from receiving that information; 

34 (3) restrict the disclosure or receipt of information relating to a Fed35 eral agency procurement after it has been canceled by the Federal 

36 agency before contract award unless the Federal agency plans to re37 sume the procurement; 

38 (4) prohibit individual meetings between a Federal agency official 

39 and an offeror or potential offeror for, or a recipient of, a contract or 

40 subcontract under a Federal agency procurement, provided that unau-
59

•HR 4320 IH 

1 thorized disclosure or receipt of contractor bid or proposal information 

2 or source selection information does not occur; 

3 (5) authorize the withholding of information from, nor restrict its re4 ceipt by, Congress, a committee or subcommittee of Congress, the 

5 Comptroller General, a Federal agency, or an inspector general of a 

6 Federal agency; 

7 (6) authorize the withholding of information from, nor restrict its re8 ceipt by, the Comptroller General in the course of a protest against the 

9 award or proposed award of a Federal agency procurement contract; 

10 or 

11 (7) limit the applicability of a requirement, sanction, contract pen12 alty, or remedy established under another law or regulation.

13 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.

14 § 2301. Use of electronic commerce in Federal procurement 

15 (a) DEFINITION.—For the purposes of this section, the term ‘‘electronic 

16 commerce’’ means electronic techniques for accomplishing business trans17 actions, including electronic mail or messaging, World Wide Web technology, 

18 electronic bulletin boards, purchase cards, electronic funds transfers, and 

19 electronic data interchange. 

20 (b) ESTABLISHMENT, MAINTENANCE, AND USE OF ELECTRONIC COM21 MERCE PROCEDURES AND PROCESSES.—The head of each executive agency, 

22 after consulting with the Administrator for Federal Procurement Policy, 

23 shall establish, maintain, and use, to the maximum extent that is practicable 

24 and cost-effective, procedures and processes that employ electronic com25 merce in the conduct and administration of the procurement system of the 

26 agency. 

27 (c) APPLICABLE STANDARDS.—In conducting electronic commerce, the 

28 head of an executive agency shall apply nationally and internationally recog29 nized standards that broaden interoperability and ease the electronic inter30 change of information. 

31 (d) REQUIREMENTS OF SYSTEMS, TECHNOLOGIES, PROCEDURES, AND

32 PROCESSES.—The head of each executive agency shall ensure that systems, 

33 technologies, procedures, and processes established pursuant to this sec34 tion—
60

•HR 4320 IH 

1 (1) are implemented with uniformity throughout the agency, to the 

2 extent practicable; 

3 (2) are implemented only after granting due consideration to the use 

4 or partial use, as appropriate, of existing electronic commerce and elec5 tronic data interchange systems and infrastructures such as the Fed6 eral acquisition computer network architecture known as FACNET; 

7 (3) facilitate access to Federal Government procurement opportuni8 ties, including opportunities for small business concerns, socially and 

9 economically disadvantaged small business concerns, and business con10 cerns owned predominantly by women; and 

11 (4) ensure that any notice of agency requirements or agency solicita12 tion for contract opportunities is provided in a form that allows conven13 ient and universal user access through a single, Government-wide point 

14 of entry. 

15 (e) IMPLEMENTATION.—In carrying out the requirements of this section, 

16 the Administrator shall—

17 (1) issue policies to promote, to the maximum extent practicable, 

18 uniform implementation of this section by executive agencies, with due 

19 regard for differences in program requirements among agencies that 

20 may require departures from uniform procedures and processes in ap21 propriate cases, when warranted because of the agency mission; 

22 (2) ensure that the head of each executive agency complies with the 

23 requirements of subsection (d); and 

24 (3) consult with the heads of appropriate Federal agencies with ap25 plicable technical and functional expertise, including the Office of In26 formation and Regulatory Affairs, the National Institute of Standards 

27 and Technology, the General Services Administration, and the Depart28 ment of Defense. 

29 (f) REPORT.—Not later than March 1, 2004, the Administrator shall sub30 mit to Congress a report setting forth in detail the progress made in imple31 menting the requirements of this section. The report shall include the fol32 lowing: 

33 (1) A strategic plan for the implementation of a Government-wide 

34 electronic commerce capability. 

35 (2) An agency-by-agency summary of implementation of the require36 ments of subsection (d), including timetables, as appropriate, address37 ing when individual agencies will come into full compliance.

38 (3) A specific assessment of compliance with the requirement in sub39 section (d) to provide universal public access through a single, Govern40 ment-wide point of entry. 
61

•HR 4320 IH 

1 (4) An agency-by-agency summary of the volume and dollar value of 

2 transactions that were conducted using electronic commerce methods 

3 during the previous calendar year. 

4 (5) A discussion of possible incremental changes to the electronic 

5 commerce capability referred to in subsection (d)(4) to increase the 

6 level of government contract information available to the private sector, 

7 including an assessment of the advisability of including contract award 

8 information in the electronic commerce functional standard. 

9 § 2302. Rights in technical data 

10 (a) WHERE DEFINED.—The legitimate proprietary interest of the Federal 

11 Government and of a contractor in technical or other data shall be defined 

12 in regulations prescribed as part of the Federal Acquisition Regulation. 

13 (b) GENERAL EXTENT OF REGULATIONS.—

14 (1) OTHER RIGHTS NOT IMPAIRED.—Regulations prescribed under 

15 subsection (a) may not impair a right of the Government or of a con16 tractor with respect to a patent or copyright or another right in tech17 nical data otherwise established by law. 

18 (2) LIMITATION ON REQUIRING DATA BE PROVIDED TO THE GOV19 ERNMENT.—With respect to executive agencies subject to part C of this 

20 subtitle, regulations prescribed under subsection (a) shall provide that 

21 the Government may not require a person that has developed a product 

22 or process offered or to be offered for sale to the public as a condition 

23 for the Government to procure the product or process, to provide to 

24 the Government technical data relating to the design, development, or 

25 manufacture of the product or process. This paragraph does not apply 

26 to data that may be necessary for the Government to operate and 

27 maintain the product or use the process if the Government obtains it 

28 as an element of performance under the contract. 

29 (c) TECHNICAL DATA DEVELOPED WITH FEDERAL AMOUNTS.—

30 (1) USE BY GOVERNMENT AND AGENCIES.—Except as otherwise ex31 pressly provided by Federal statute, with respect to executive agencies 

32 subject to part C of this subtitle, regulations prescribed under sub33 section (a) shall provide that— 

34 (A) the Government has unlimited rights in technical data de35 veloped exclusively with Federal amounts if delivery of the data—

36 (i) was required as an element of performance under a con37 tract; and 

38 (ii) is needed to ensure the competitive acquisition of sup39 plies or services that will be required in substantial quantities 

40 in the future; and 
62

•HR 4320 IH 

1 (B) the Government and each agency of the Government has an 

2 unrestricted, royalty-free right to use, or to have its contractors 

3 use, for governmental purposes (excluding publication outside the 

4 Government) technical data developed exclusively with Federal 

5 amounts. 

6 (2) REQUIREMENTS IN ADDITION TO OTHER RIGHTS OF THE GOV7 ERNMENT.—The requirements of paragraph (1) are in addition to and 

8 not in lieu of any other rights the Government may have pursuant to 

9 law. 

10 (d) FACTORS TO BE CONSIDERED IN PRESCRIBING REGULATIONS.—The 

11 following factors shall be considered in prescribing regulations under sub12 section (a): 

13 (1) Whether the item or process to which the technical data pertains 

14 was developed—

15 (A) exclusively with Federal amounts; 

16 (B) exclusively at private expense; or 

17 (C) in part with Federal amounts and in part at private ex18 pense. 

19 (2) The statement of congressional policy and objectives in section 

20 200 of title 35, the statement of purposes in section 2(b) of the Small 

21 Business Innovation Development Act of 1982 (Public Law 97–219, 15 

22 U.S.C. 638 note), and the declaration of policy in section 2 of the 

23 Small Business Act (15 U.S.C. 631). 

24 (3) The interest of the Government in increasing competition and 

25 lowering costs by developing and locating alternative sources of supply 

26 and manufacture. 

27 (e) PROVISIONS REQUIRED IN CONTRACTS.—Regulations prescribed 

28 under subsection (a) shall require that a contract for property or services 

29 entered into by an executive agency contain appropriate provisions relating 

30 to technical data, including provisions—

31 (1) defining the respective rights of the Government and the con32 tractor or subcontractor (at any tier) regarding technical data to be de33 livered under the contract; 

34 (2) specifying technical data to be delivered under the contract and 

35 schedules for delivery; 

36 (3) establishing or referencing procedures for determining the ac37 ceptability of technical data to be delivered under the contract; 

38 (4) establishing separate contract line items for technical data to be 

39 delivered under the contract; 
63

•HR 4320 IH 

1 (5) to the maximum practicable extent, identifying, in advance of de2 livery, technical data which is to be delivered with restrictions on the 

3 right of the Government to use the data; 

4 (6) requiring the contractor to revise any technical data delivered 

5 under the contract to reflect engineering design changes made during 

6 the performance of the contract and affecting the form, fit, and func7 tion of the items specified in the contract and to deliver the revised 

8 technical data to an agency within a time specified in the contract; 

9 (7) requiring the contractor to furnish written assurance, when tech10 nical data is delivered or is made available, that the technical data is 

11 complete and accurate and satisfies the requirements of the contract 

12 concerning technical data; 

13 (8) establishing remedies to be available to the Government when 

14 technical data required to be delivered or made available under the con15 tract is found to be incomplete or inadequate or to not satisfy the re16 quirements of the contract concerning technical data; and 

17 (9) authorizing the head of the agency to withhold payments under 

18 the contract (or exercise another remedy the head of the agency con19 siders appropriate) during any period if the contractor does not meet 

20 the requirements of the contract pertaining to the delivery of technical 

21 data. 

22 § 2303. Conflict of interest standards for consultants 

23 (a) CONTENT OF REGULATIONS.—The Administrator for Federal Pro24 curement Policy shall prescribe Government-wide regulations that set 

25 forth—

26 (1) conflict of interest standards for persons who provide consulting 

27 services described in subsection (b); and 

28 (2) procedures, including registration, certification, and enforcement 

29 requirements as may be appropriate, to promote compliance with the 

30 standards. 

31 (b) SERVICES SUBJECT TO REGULATIONS.—Regulations required by sub32 section (a) apply to—

33 (1) advisory and assistance services provided to the Government to 

34 the extent necessary to identify and evaluate the potential for conflicts 

35 of interest that could be prejudicial to the interests of the United 

36 States; 

37 (2) services related to support of the preparation or submission of 

38 bids and proposals for Federal contracts to the extent that inclusion 

39 of the services in the regulations is necessary to identify and evaluate

40 the potential for conflicts of interest that could be prejudicial to the 

41 interests of the United States; and 
64

•HR 4320 IH 

1 (3) other services related to Federal contracts as specified in the reg2 ulations prescribed under subsection (a) to the extent necessary to 

3 identify and evaluate the potential for conflicts of interest that could 

4 be prejudicial to the interests of the United States. 

5 (c) INTELLIGENCE ACTIVITIES EXEMPTION.—

6 (1) ACTIVITIES THAT MAY BE EXEMPT.—Intelligence activities as de7 fined in section 3.4(e) of Executive Order No. 12333 or a comparable 

8 definitional section in any successor order may be exempt from the reg9 ulations required by subsection (a). 

10 (2) REPORT.—The Director of Central Intelligence shall report to 

11 the Intelligence and Appropriations Committees of Congress each Jan12 uary 1, delineating the activities and organizations that have been ex13 empted under paragraph (1). 

14 (d) PRESIDENTIAL DETERMINATION.—Before the regulations required by 

15 subsection (a) are prescribed, the President shall determine if prescribing 

16 the regulations will have a significantly adverse effect on the accomplish17 ment of the mission of the Defense Department or another Federal agency. 

18 When the President determines that the regulations will have an adverse ef19 fect, the President shall report to the appropriate committees of the Senate 

20 and the House of Representatives, stating in full the reasons for the deter21 mination. When the report is submitted, the requirement for the regulations 

22 shall be null and void. 

23 § 2304. Authority of Director of Office of Management and 

24 Budget not affected 

25 This part does not limit the authorities and responsibilities of the Direc26 tor of the Office of Management and Budget in effect on December 1, 1983. 

27 § 2305. Openness of meetings 

28 The Administrator for Federal Procurement Policy by regulation shall re29 quire that—

30 (1) formal meetings of the Office of Federal Procurement Policy, as 

31 designated by the Administrator, for developing procurement policies 

32 and regulations be open to the public; and 

33 (2) public notice of each meeting be given not less than 10 days 

34 prior to the meeting. 

35 § 2306. Comptroller General’s access to information 

36 The Administrator for Federal Procurement Policy and personnel in the 

37 Office of Federal Procurement Policy shall furnish information the Comp38 troller General may require to discharge the responsibilities of the Comp39 troller General. For this purpose, the Comptroller General or his representa40 tives shall have access to all books, documents, papers, and records of the 

41 Office. 
65

•HR 4320 IH 

1 § 2307. Modular contracting for information technology 

2 (a) MODULAR CONTRACTING DESCRIBED.—Under modular contracting, 

3 an executive agency’s need for a system is satisfied in successive acquisi4 tions of interoperable increments. Each increment complies with common or 

5 commercially accepted standards applicable to information technology so 

6 that the increments are compatible with other increments of information 

7 technology comprising the system. 

8 (b) USE.—To the maximum extent practicable, the head of an executive 

9 agency should use modular contracting for an acquisition of a major system 

10 of information technology. 

11 (c) PROVISIONS IN FEDERAL ACQUISITION REGULATION.—The Federal 

12 Acquisition Regulation shall provide that—

13 (1) under the modular contracting process, an acquisition of a major 

14 system of information technology may be divided into several smaller 

15 acquisition increments that—

16 (A) are easier to manage individually than would be one com17 prehensive acquisition; 

18 (B) address complex information technology objectives incre19 mentally in order to enhance the likelihood of achieving workable 

20 solutions for attaining those objectives; 

21 (C) provide for delivery, implementation, and testing of work22 able systems or solutions in discrete increments, each of which 

23 comprises a system or solution that is not dependent on a subse24 quent increment in order to perform its principal functions; and 

25 (D) provide an opportunity for subsequent increments of the ac26 quisition to take advantage of any evolution in technology or needs 

27 that occurs during conduct of the earlier increments; 

28 (2) to the maximum extent practicable, a contract for an increment 

29 of an information technology acquisition should be awarded within 180 

30 days after the solicitation is issued and, if the contract for that incre31 ment cannot be awarded within that period, the increment should be 

32 considered for cancellation; and 

33 (3) the information technology provided for in a contract for acquisi34 tion of information technology should be delivered within 18 months 

35 after the solicitation resulting in award of the contract was issued. 

36 § 2308. Protection of constitutional rights of contractors 

37 (a) PROHIBITION ON REQUIRING WAIVER OF RIGHTS.—A contractor may 

38 not be required, as a condition for entering into a contract with the Federal 

39 Government, to waive a right under the Constitution for a purpose relating 

40 to the Chemical Weapons Convention Implementation Act of 1998 (22 
66

•HR 4320 IH 

1 U.S.C. 6701 et seq.) or the Chemical Weapons Convention (as defined in 

2 section 3 of the Act (22 U.S.C. 6701)). 

3 (b) PERMISSIBLE CONTRACT CLAUSES.—Subsection (a) does not prohibit 

4 an executive agency from including in a contract a clause that requires the 

5 contractor to permit inspections to ensure that the contractor is performing 

6 the contract in accordance with the provisions of the contract. 

7 § 2309. Performance-based contracts or task orders for serv8 ices to be treated as contracts for the procurement 

9 of commercial items 

10 (a) CRITERIA.—A performance-based contract for the procurement of 

11 services entered into by an executive agency or a performance-based task 

12 order for services issued by an executive agency may be treated as a con13 tract for the procurement of commercial items if—

14 (1) the value of the contract or task order is estimated not to exceed 

15 $25,000,000; 

16 (2) the contract or task order sets forth specifically each task to be 

17 performed and, for each task—

18 (A) defines the task in measurable, mission-related terms; 

19 (B) identifies the specific end products or output to be achieved; 

20 and 

21 (C) contains, firm, fixed prices for specific tasks to be per22 formed or outcomes to be achieved; and 

23 (3) the source of the services provides similar services to the general 

24 public under terms and conditions similar to those offered to the Fed25 eral Government. 

26 (b) REGULATIONS.—Regulations implementing this section shall require 

27 agencies to collect and maintain reliable data sufficient to identify the con28 tracts or task orders treated as contracts for commercial items using the 

29 authority of this section. The data may be collected using the Federal Pro30 curement Data System or other reporting mechanism. 

31 (c) REPORT.—Not later than two years after November 24, 2003, the Di32 rector of the Office of Management and Budget shall prepare and submit 

33 to the Committees on Governmental Affairs and on Armed Services of the 

34 Senate and the Committees on Government Reform and on Armed Services 

35 of the House of Representatives a report on the contracts or task orders 

36 treated as contracts for commercial items using the authority of this section. 

37 The report shall include data on the use of the authority, both government38 wide and for each department and agency. 

39 (d) EXPIRATION.—The authority under this section expires 10 years after 

40 November 24, 2003.
67

•HR 4320 IH 

1 PART C—PROCUREMENT

2 CHAPTER 31—GENERAL

Sec. 

3101. Definitions. 

3102. Applicability. 

3103. Delegation and assignment of powers, functions, and responsibilities. 

3104. Acquisition programs. 

3105. Small business concerns. 

3106. New contracts and grants and merit-based selection procedures. 

3107. Erection, repair, or furnishing of public buildings and improvements not authorized, 

and certain contracts not permitted, by this part.

3 § 3101. Definitions 

4 In this part—

5 (1) AGENCY HEAD.—The term ‘‘agency head’’ means the head or 

6 any assistant head of an executive agency, and may at the option of 

7 the Administrator of General Services include the chief official of any 

8 principal organizational unit of the General Services Administration. 

9 (2) COMPETITIVE PROCEDURES.—The term ‘‘competitive proce10 dures’’ means procedures under which an executive agency enters into 

11 a contract pursuant to full and open competition. The term also in12 cludes—

13 (A) procurement of architectural or engineering services con14 ducted in accordance with chapter 11 of title 40; 

15 (B) the competitive selection of basic research proposals result16 ing from a general solicitation and the peer review or scientific re17 view (as appropriate) of those proposals; 

18 (C) the procedures established by the Administrator for the 

19 multiple awards schedule program of the Administration if—

20 (i) participation in the program has been open to all re21 sponsible sources; and 

22 (ii) orders and contracts under those procedures result in 

23 the lowest overall cost alternative to meet the needs of the 

24 Government; 

25 (D) procurements conducted in furtherance of section 15 of the 

26 Small Business Act (15 U.S.C. 644) as long as all responsible 

27 business concerns that are entitled to submit offers for those pro28 curements are permitted to compete; and 

29 (E) a competitive selection of research proposals resulting from 

30 a general solicitation and peer review or scientific review (as ap31 propriate) solicited pursuant to section 9 of the Act (15 U.S.C. 

32 638). 

33 (3) SIMPLIFIED ACQUISITION THRESHOLD.—

34 (A) IN GENERAL.—The term ‘‘simplified acquisition threshold’’ 

35 has the meaning provided that term in section 133 of this title, 
68

•HR 4320 IH 

1 except that, in the case of a contract to be awarded and per2 formed, or purchase to be made, outside the United States in sup3 port of a contingency operation or a humanitarian or peacekeeping 

4 operation, the term means an amount equal to two times the 

5 amount specified for that term in section 133. 

6 (B) SPECIFIC DEFINITIONS RELATING TO SIMPLIFIED ACQUISI7 TION THRESHOLD.—In subclause (a)—

8 (i) CONTINGENCY OPERATION.—The term ‘‘contingency op9 eration’’ has the meaning given that term in section 101(a) 

10 of title 10. 

11 (ii) HUMANITARIAN OR PEACEKEEPING OPERATION.—The 

12 term ‘‘humanitarian or peacekeeping operation’’ means a 

13 military operation in support of the provision of humanitarian 

14 or foreign disaster assistance or in support of a peacekeeping 

15 operation under chapter VI or VII of the Charter of the 

16 United Nations. The term does not include routine training, 

17 force rotation, or stationing. 

18 § 3102. Applicability 

19 (a) IN GENERAL.—An executive agency shall make purchases and con20 tracts for property and services in accordance with this part and imple21 menting regulations of the Administrator of General Services. 

22 (b) SIMPLIFIED ACQUISITION THRESHOLD AND PROCEDURES.—

23 (1) SIMPLIFIED ACQUISITION THRESHOLD.—

24 (A) DEFINITION.—For purposes of an acquisition by an execu25 tive agency, the simplified acquisition threshold is as specified in 

26 section 133 of this title. 

27 (B) INAPPLICABLE LAWS.—A law properly listed in the Federal 

28 Acquisition Regulation pursuant to section 1905 of this title does 

29 not apply to or with respect to a contract or subcontract that is 

30 not greater than the simplified acquisition threshold. 

31 (2) SIMPLIFIED ACQUISITION PROCEDURES.—Simplified acquisition 

32 procedures contained in the Federal Acquisition Regulation pursuant to 

33 section 1901 of this title apply in executive agencies as provided in sec34 tion 1901. 

35 (c) EXCEPTIONS.— 

36 (1) IN GENERAL.—This part does not apply—

37 (A) to the Department of Defense, the Coast Guard, and the 

38 National Aeronautics and Space Administration; or 

39 (B) except as provided in paragraph (2), when this part is made 

40 inapplicable pursuant to law. 
69

•HR 4320 IH 

1 (2) APPLICABILITY OF CERTAIN LAWS RELATED TO ADVERTISING, 

2 OPENING OF BIDS, AND LENGTH OF CONTRACT.—Sections 6101, 6103, 

3 and 6304 of this title do not apply to the procurement of property or 

4 services made by an executive agency pursuant to this part. However, 

5 when this part is made inapplicable by any law, sections 6101 and 

6 6103 apply in the absence of authority conferred by statute to procure 

7 without advertising or without regard to section 6101. A law that au8 thorizes an executive agency (other than an executive agency exempted 

9 from this part by this subsection) to procure property or services with10 out advertising or without regard to section 6101 is deemed to author11 ize the procurement pursuant to the provisions of this part relating to 

12 procedures other than sealed-bid procedures. 

13 § 3103. Delegation and assignment of powers, functions, and 

14 responsibilities 

15 (a) IN GENERAL.—Except to the extent expressly prohibited by another 

16 law, the head of an executive agency may delegate to another officer or offi17 cial of that agency any power under this part. 

18 (b) PROCUREMENTS FOR OR WITH ANOTHER AGENCY.—Subject to sub19 section (a), to facilitate the procurement of property and services covered 

20 by this part by an executive agency for another executive agency, and to 

21 facilitate joint procurement by executive agencies—

22 (1) the head of an executive agency may delegate functions and as23 sign responsibilities relating to procurement to any officer or employee 

24 within the agency; 

25 (2) the heads of two or more executive agencies, consistent with sec26 tion 1535 of title 31 and regulations prescribed under section 1074 of 

27 the Federal Acquisition Streamlining Act of 1994 (Public Law 103–

28 355, 31 U.S.C. 1535 note), may agree to delegate procurement func29 tions and assign procurement responsibilities from one executive agency 

30 to another of those executive agencies or to an officer or civilian em31 ployee of another of those executive agencies; and 

32 (3) the heads of two or more executive agencies may establish joint 

33 or combined offices to exercise procurement functions and responsibil34 ities. 

35 § 3104. Acquisition programs 

36 (a) CONGRESSIONAL POLICY.—It is the policy of Congress that the head 

37 of each executive agency should achieve, on average, 90 percent of the cost, 

38 performance, and schedule goals established for major acquisition programs 

39 of the agency.

40 (b) ESTABLISHMENT OF GOALS.—
70

•HR 4320 IH 

1 (1) BY HEAD OF EXECUTIVE AGENCY.—The head of each executive 

2 agency shall approve or define the cost, performance, and schedule 

3 goals for major acquisition programs of the agency. 

4 (2) BY CHIEF FINANCIAL OFFICER.—The chief financial officer of an 

5 executive agency shall evaluate the cost goals proposed for each major 

6 acquisition program of the agency. 

7 (c) IDENTIFICATION OF NONCOMPLIANT PROGRAMS.—When it is nec8 essary to implement the policy set out in subsection (a), the head of an ex9 ecutive agency shall— 

10 (1) determine whether there is a continuing need for programs that 

11 are significantly behind schedule, over budget, or not in compliance 

12 with performance or capability requirements; and 

13 (2) identify suitable actions to be taken, including termination, with 

14 respect to those programs. 

15 § 3105. Small business concerns 

16 It is the policy of Congress that a fair proportion of the total purchases 

17 and contracts for property and services for the Federal Government shall 

18 be placed with small business concerns. 

19 § 3106. New contracts and grants and merit-based selection 

20 procedures 

21 (a) CONGRESSIONAL POLICY.—It is the policy of Congress that—

22 (1) an executive agency should not be required by legislation to 

23 award—

24 (A) a new contract to a specific non-Federal Government entity; 

25 or 

26 (B) a new grant for research, development, use, or evaluation 

27 to a non-Government entity; and 

28 (2) a program, project, or technology identified in legislation be pro29 cured through merit-based selection procedures. 

30 (b) NEW CONTRACT AND NEW GRANT DESCRIBED.—For purposes of 

31 this section—

32 (1) a contract is a new contract unless the work provided for in the 

33 contract is a continuation of the work performed by the specified entity 

34 under a prior contract; and 

35 (2) a grant is a new grant unless the work provided for in the grant 

36 is a continuation of the work performed by the specified entity under 

37 a prior grant. 

38 (c) REQUIREMENTS FOR AWARDING NEW CONTRACT OR NEW GRANT.—

39 A provision of law does not require a new contract or new grant be awarded 

40 to a specified non-Government entity unless the provision of law specifi41 cally—
71

•HR 4320 IH 

1 (1) refers to this section; 

2 (2) identifies the particular non-Government entity involved; and 

3 (3) states that the award to that entity is required by the provision 

4 of law in contravention of the policy set forth in subsection (a). 

5 (d) EXCEPTION.—This section does not apply to a contract or grant that 

6 calls on the National Academy of Sciences to investigate, examine, or experi7 ment on a subject of science or art of significance to an executive agency 

8 and to report on those matters to Congress or an agency of the Govern9 ment. 

10 § 3107. Erection, repair, or furnishing of public buildings 

11 and improvements not authorized, and certain 

12 contracts not permitted, by this part 

13 This part does not—

14 (1) authorize the erection, repair, or furnishing of a public building 

15 or public improvement; or 

16 (2) permit a contract for the construction or repair of a building, 

17 road, sidewalk, sewer, main, or similar items using procedures other 

18 than sealed-bid procedures under section 3301(b)(1)(A) of this title if 

19 the conditions set forth in section 3301(b)(1)(A) apply or the contract 

20 is to be performed outside the United States. 

21 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.

22 § 3301. Full and open competition 

23 (a) IN GENERAL.—Except as provided in sections 3302, 3303(a), and 

24 3304 of this title and except in the case of procurement procedures other25 wise expressly authorized by statute, an executive agency in conducting a 

26 procurement for property or services shall—

27 (1) obtain full and open competition through the use of competitive 

28 procedures in accordance with the requirements of this part and the 

29 Federal Acquisition Regulation; and 

30 (2) use the competitive procedure or combination of competitive pro31 cedures that is best suited under the circumstances of the procurement. 

32 (b) APPROPRIATE COMPETITIVE PROCEDURES.—

33 (1) USE OF SEALED BIDS.—In determining the competitive proce34 dures appropriate under the circumstance, an executive agency shall—
72

•HR 4320 IH 

1 (A) solicit sealed bids if—

2 (i) time permits the solicitation, submission, and evaluation 

3 of sealed bids; 

4 (ii) the award will be made on the basis of price and other 

5 price-related factors; 

6 (iii) it is not necessary to conduct discussions with the re7 sponding sources about their bids; and 

8 (iv) there is a reasonable expectation of receiving more 

9 than one sealed bid; or 

10 (B) request competitive proposals if sealed bids are not appro11 priate under clause (A). 

12 (2) SEALED BID NOT REQUIRED.—Paragraph (1)(A) does not re13 quire the use of sealed-bid procedures in cases in which section 204(e) 

14 of title 23 applies. 

15 (c) EFFICIENT FULFILLMENT OF GOVERNMENT REQUIREMENTS.—The 

16 Federal Acquisition Regulation shall ensure that the requirement to obtain 

17 full and open competition is implemented in a manner that is consistent 

18 with the need to efficiently fulfill the Federal Government’s requirements. 

19 § 3302. Exclusion of particular source or restriction of solici20 tation to small business concerns 

21 (a) EXCLUSION OF PARTICULAR SOURCE.—

22 (1) CRITERIA FOR EXCLUSION.—An executive agency may provide 

23 for the procurement of property or services covered by this section 

24 using competitive procedures but excluding a particular source to estab25 lish or maintain an alternative source of supply for that property or 

26 service if the agency head determines that to do so—

27 (A) would increase or maintain competition and likely result in 

28 reduced overall cost for the procurement, or for an anticipated 

29 procurement, of the property or services; 

30 (B) would be in the interest of national defense in having a fa31 cility (or a producer, manufacturer, or other supplier) available for 

32 furnishing the property or service in case of a national emergency 

33 or industrial mobilization; 

34 (C) would be in the interest of national defense in establishing 

35 or maintaining an essential engineering, research, or development 

36 capability to be provided by an educational or other nonprofit in37 stitution or a Federally funded research and development center;

38 (D) would ensure the continuous availability of a reliable source 

39 of supply of the property or service; 
73

•HR 4320 IH 

1 (E) would satisfy projected needs for the property or service de2 termined on the basis of a history of high demand for the property 

3 or service; or 

4 (F) would satisfy a critical need for medical, safety, or emer5 gency supplies. 

6 (2) DETERMINATION FOR CLASS DISALLOWED.—A determination 

7 under paragraph (1) may not be made for a class of purchases or con8 tracts. 

9 (b) EXCLUSION OF OTHER THAN SMALL BUSINESS CONCERNS.—An ex10 ecutive agency may provide for the procurement of property or services cov11 ered by this section using competitive procedures, but excluding other than 

12 small business concerns in furtherance of sections 9 and 15 of the Small 

13 Business Act (15 U.S.C. 638, 644). 

14 (c) NONAPPLICATION OF JUSTIFICATION AND APPROVAL REQUIRE15 MENTS.—A contract awarded pursuant to the competitive procedures re16 ferred to in subsections (a) and (b) is not subject to the justification and 

17 approval required by section 3303(d)(1) of this title. 

18 § 3303. Use of noncompetitive procedures 

19 (a) WHEN NONCOMPETITIVE PROCEDURES MAY BE USED.—An execu20 tive agency may use procedures other than competitive procedures only 

21 when—

22 (1) the property or services needed by the executive agency are avail23 able from only one responsible source and no other type of property 

24 or services will satisfy the needs of the executive agency; 

25 (2) the executive agency’s need for the property or services is of such 

26 an unusual and compelling urgency that the Federal Government would 

27 be seriously injured unless the executive agency is permitted to limit 

28 the number of sources from which it solicits bids or proposals; 

29 (3) it is necessary to award the contract to a particular source—

30 (A) to maintain a facility, producer, manufacturer, or other sup31 plier available for furnishing property or services in case of a na32 tional emergency or to achieve industrial mobilization; 

33 (B) to establish or maintain an essential engineering, research, 

34 or development capability to be provided by an educational or 

35 other nonprofit institution or a Federally funded research and de36 velopment center; 

37 (C) to procure the services of an expert for use in any litigation 

38 or dispute (including any reasonably foreseeable litigation or dis39 pute) involving the Government or in any trial, hearing, or pro40 ceeding before a court, administrative tribunal, or agency, whether 

41 or not the expert is expected to testify; or 
74

•HR 4320 IH 

1 (D) to procure the services of an expert or neutral for use in 

2 any part of an alternative dispute resolution or negotiated rule3 making process, whether or not the expert is expected to testify; 

4 (4) the terms of an international agreement or treaty between the 

5 Government and the government of a foreign country or an inter6 national organization, or the written directions of the government of a 

7 foreign country reimbursing the executive agency for the cost of the 

8 procurement of the property or services for that government, require 

9 the use of procedures other than competitive procedures; 

10 (5) subject to section 3106 of this title, a statute expressly author11 izes or requires that the procurement be made through another execu12 tive agency or from a specified source, or the agency’s need is for a 

13 brand-name commercial item for authorized resale; 

14 (6) the disclosure of the executive agency’s needs would compromise 

15 the national security unless the agency is permitted to limit the number 

16 of sources from which it solicits bids or proposals; or 

17 (7) the head of the executive agency (who may not delegate the au18 thority under this clause)—

19 (A) determines that it is necessary in the public interest to use 

20 procedures other than competitive procedures in the particular 

21 procurement concerned; and 

22 (B) notifies Congress in writing of that determination not less 

23 than 30 days before the award of the contract. 

24 (b) PROPERTY OR SERVICES DEEMED AVAILABLE FROM ONLY ONE

25 SOURCE.—For the purposes of subsection (a)(1), in the case of—

26 (1) a contract for property or services to be awarded on the basis 

27 of acceptance of an unsolicited research proposal, the property or serv28 ices are deemed to be available from only one source if the source has 

29 submitted an unsolicited research proposal that demonstrates a unique 

30 and innovative concept, the substance of which is not otherwise avail31 able to the Government and does not resemble the substance of a pend32 ing competitive procurement; or 

33 (2) a follow-on contract for the continued development or production 

34 of a major system or highly specialized equipment, the property may 

35 be deemed to be available only from the original source and may be 

36 procured through procedures other than competitive procedures when 

37 it is likely that award to a source other than the original source would 

38 result in—

39 (A) substantial duplication of cost to the Government that is 

40 not expected to be recovered through competition; or 

41 (B) unacceptable delay in fulfilling the executive agency’s needs. 
75

•HR 4320 IH 

1 (c) OFFER REQUESTS TO POTENTIAL SOURCES.—An executive agency 

2 using procedures other than competitive procedures to procure property or 

3 services by reason of the application of subsection (a)(2) or (6) shall request 

4 offers from as many potential sources as is practicable under the cir5 cumstances. 

6 (d) JUSTIFICATION FOR USE OF NONCOMPETITIVE PROCEDURES.—

7 (1) PREREQUISITES FOR AWARDING CONTRACT.—Except as provided 

8 in paragraph (2), an executive agency may not award a contract using 

9 procedures other than competitive procedures unless—

10 (A) the contracting officer for the contract justifies the use of 

11 those procedures in writing and certifies the accuracy and com12 pleteness of the justification; 

13 (B) the justification is approved, in the case of a contract for 

14 an amount—

15 (i) exceeding $500,000 but equal to or less than 

16 $10,000,000, by the competition advocate for the procuring 

17 activity (without further delegation) or by an official referred 

18 to in subclause (ii) or (iii) of this clause; 

19 (ii) exceeding $10,000,000 but equal to or less than 

20 $50,000,000, by the head of the procuring activity or by a 

21 delegate who, if a member of the armed forces, is a general 

22 or flag officer or, if a civilian, is serving in a position in which 

23 the individual is entitled to receive the daily equivalent of the 

24 maximum annual rate of basic pay payable under section 

25 5376 of title 5 (or in a comparable or higher position); or 

26 (iii) exceeding $50,000,000, by the senior procurement ex27 ecutive of the agency designated pursuant to section 1702(c) 

28 of this title (without further delegation); and 

29 (C) any required notice has been published with respect to the 

30 contract pursuant to section 1707 of this title and the executive 

31 agency has considered all bids or proposals received in response 

32 to that notice. 

33 (2) ELEMENTS OF JUSTIFICATION.—The justification required by 

34 paragraph (1)(A) shall include—

35 (A) a description of the agency’s needs; 

36 (B) an identification of the statutory exception from the re37 quirement to use competitive procedures and a demonstration,

38 based on the proposed contractor’s qualifications or the nature of 

39 the procurement, of the reasons for using that exception; 

40 (C) a determination that the anticipated cost will be fair and 

41 reasonable; 
76

•HR 4320 IH 

1 (D) a description of the market survey conducted or a state2 ment of the reasons a market survey was not conducted; 

3 (E) a listing of any sources that expressed in writing an interest 

4 in the procurement; and 

5 (F) a statement of any actions the agency may take to remove 

6 or overcome a barrier to competition before a subsequent procure7 ment for those needs. 

8 (3) JUSTIFICATION SUBJECT TO PUBLIC INSPECTION.—The justifica9 tion required by paragraph (1)(A) and any related information shall be 

10 made available for inspection by the public consistent with section 552 

11 of title 5. 

12 (4) JUSTIFICATION ALLOWED AFTER CONTRACT AWARDED.—In the 

13 case of a procurement permitted by subsection (a)(2), the justification 

14 and approval required by paragraph (1) may be made after the con15 tract is awarded. 

16 (5) JUSTIFICATION NOT REQUIRED.—The justification and approval 

17 required by paragraph (1) are not required if—

18 (A) a statute expressly requires that the procurement be made 

19 from a specified source; 

20 (B) the agency’s need is for a brand-name commercial item for 

21 authorized resale; 

22 (C) the procurement is permitted by subsection (c)(7) of this 

23 section; or 

24 (D) the procurement is conducted under chapter 85 of this title 

25 or section 8(a) of the Small Business Act (15 U.S.C. 637(a)). 

26 (6) RESTRICTIONS ON EXECUTIVE AGENCIES.—

27 (A) CONTRACTS AND PROCUREMENT OF PROPERTY OR SERV28 ICES.—In no case may an executive agency—

29 (i) enter into a contract for property or services using pro30 cedures other than competitive procedures on the basis of the 

31 lack of advance planning or concerns related to the amount 

32 available to the agency for procurement functions; or 

33 (ii) procure property or services from another executive 

34 agency unless the other executive agency complies fully with 

35 the requirements of this part in its procurement of the prop36 erty or services. 

37 (B) ADDITIONAL RESTRICTION.—The restriction set out in sub38 paragraph (A)(ii) is in addition to any other restriction provided 

39 by law. 
77

•HR 4320 IH 

1 § 3304. Simplified procedures for small purchases 

2 (a) AUTHORIZATION.—To promote efficiency and economy in contracting 

3 and to avoid unnecessary burdens for agencies and contractors, the Federal 

4 Acquisition Regulation shall provide for special simplified procedures for 

5 purchases of property and services for amounts—

6 (1) not greater than the simplified acquisition threshold; and 

7 (2) greater than the simplified acquisition threshold but not greater 

8 than $5,000,000 for which the contracting officer reasonably expects, 

9 based on the nature of the property or services sought and on market 

10 research, that offers will include only commercial items. 

11 (b) LEASEHOLD INTERESTS IN REAL PROPERTY.—The Administrator of 

12 General Services shall prescribe regulations that provide special simplified 

13 procedures for acquisitions of leasehold interests in real property at rental 

14 rates that do not exceed the simplified acquisition threshold. The rental rate 

15 under a multiyear lease does not exceed the simplified acquisition threshold 

16 if the average annual amount of the rent payable for the period of the lease 

17 does not exceed the simplified acquisition threshold. 

18 (c) PROHIBITION ON DIVIDING CONTRACTS.—A proposed purchase or 

19 contract for an amount above the simplified acquisition threshold may not 

20 be divided into several purchases or contracts for lesser amounts to use the 

21 simplified procedures required by paragraph (1). 

22 (d) PROMOTION OF COMPETITION.—In using the simplified procedures, 

23 an executive agency shall promote competition to the maximum extent prac24 ticable. 

25 (e) COMPLIANCE WITH SPECIAL REQUIREMENTS OF FEDERAL ACQUISI26 TION REGULATION.—An executive agency shall comply with the Federal Ac27 quisition Regulation provisions referred to in section 1901(f) of this title. 

28 § 3305. Planning and solicitation requirements 

29 (a) PLANNING AND SPECIFICATIONS.—

30 (1) PREPARING FOR PROCUREMENT.—In preparing for the procure31 ment of property or services, an executive agency shall—

32 (A) specify its needs and solicit bids or proposals in a manner 

33 designed to achieve full and open competition for the procurement; 

34 (B) use advance procurement planning and market research; 

35 and 

36 (C) develop specifications in the manner necessary to obtain full 

37 and open competition with due regard to the nature of the prop38 erty or services to be acquired. 

39 (2) REQUIREMENTS OF SPECIFICATIONS.—Each solicitation under 

40 this part shall include specifications that—
78

•HR 4320 IH 

1 (A) consistent with this part, permit full and open competition; 

2 and 

3 (B) include restrictive provisions or conditions only to the extent 

4 necessary to satisfy the needs of the executive agency or as au5 thorized by law. 

6 (3) TYPES OF SPECIFICATIONS.—For the purposes of paragraphs (1) 

7 and (2), the type of specification included in a solicitation shall depend 

8 on the nature of the needs of the executive agency and the market 

9 available to satisfy those needs. Subject to those needs, specifications 

10 may be stated in terms of—

11 (A) function, so that a variety of products or services may qual12 ify; 

13 (B) performance, including specifications of the range of accept14 able characteristics or of the minimum acceptable standards; or 

15 (C) design requirements. 

16 (b) CONTENTS OF SOLICITATION.—In addition to the specifications de17 scribed in subsection (a), each solicitation for sealed bids or competitive pro18 posals (other than for a procurement for commercial items using special 

19 simplified procedures or a purchase for an amount not greater than the sim20 plified acquisition threshold) shall at a minimum include—

21 (1) a statement of—

22 (A) all significant factors and significant subfactors that the ex23 ecutive agency reasonably expects to consider in evaluating sealed 

24 bids (including price) or competitive proposals (including cost or 

25 price, cost-related or price-related factors and subfactors, and 

26 noncost-related or nonprice-related factors and subfactors); and 

27 (B) the relative importance assigned to each of those factors 

28 and subfactors; and 

29 (2)(A) in the case of sealed bids—

30 (i) a statement that sealed bids will be evaluated without discus31 sions with the bidders; and 

32 (ii) the time and place for the opening of the sealed bids; or 

33 (B) in the case of competitive proposals—

34 (i) either a statement that the proposals are intended to be eval35 uated with, and the award made after, discussions with the 

36 offerors, or a statement that the proposals are intended to be eval37 uated, and the award made, without discussions with the offerors 

38 (other than discussions conducted for the purpose of minor clari39 fication) unless discussions are determined to be necessary; and

40 (ii) the time and place for submission of proposals. 

41 (c) EVALUATION FACTORS.—
79

•HR 4320 IH 

1 (1) IN GENERAL.—In prescribing the evaluation factors to be in2 cluded in each solicitation for competitive proposals, an executive agen3 cy shall—

4 (A) establish clearly the relative importance assigned to the 

5 evaluation factors and subfactors, including the quality of the 

6 product or services to be provided (including technical capability, 

7 management capability, prior experience, and past performance of 

8 the offeror); 

9 (B) include cost or price to the Federal Government as an eval10 uation factor that must be considered in the evaluation of pro11 posals; and 

12 (C) disclose to offerors whether all evaluation factors other than 

13 cost or price, when combined, are—

14 (i) significantly more important than cost or price; 

15 (ii) approximately equal in importance to cost or price; or 

16 (iii) significantly less important than cost or price. 

17 (2) RESTRICTION ON IMPLEMENTING REGULATIONS.—Regulations 

18 implementing paragraph (1)(C) may not define the terms ‘‘significantly 

19 more important’’ and ‘‘significantly less important’’ as specific numeric 

20 weights that would be applied uniformly to all solicitations or a class 

21 of solicitations. 

22 (d) ADDITIONAL INFORMATION IN SOLICITATION.—This section does not 

23 prohibit an executive agency from—

24 (1) providing additional information in a solicitation, including nu25 meric weights for all evaluation factors and subfactors on a case-by26 case basis; or 

27 (2) stating in a solicitation that award will be made to the offeror 

28 that meets the solicitation’s mandatory requirements at the lowest cost 

29 or price. 

30 (e) LIMITATION ON EVALUATION OF PURCHASE OPTIONS.—An executive 

31 agency, in issuing a solicitation for a contract to be awarded using sealed 

32 bid procedures, may not include in the solicitation a clause providing for the 

33 evaluation of prices for options to purchase additional property or services 

34 under the contract unless the executive agency has determined that there 

35 is a reasonable likelihood that the options will be exercised. 

36 (f) AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRAC37 TORS—

38 (1) DEFINITION.—In this subsection, the term ‘‘executive agency’’ 

39 has the meaning given that term in section 132 of this title. 

40 (2) FEDERAL ACQUISITION REGULATION TO ALLOW TELECOM41 MUTING.—The Federal Acquisition Regulation issued in accordance 
80

•HR 4320 IH 

1 with sections 1121(b) and 1302(a)(1) of this title shall permit telecom2 muting by employees of Government contractors in the performance of 

3 contracts entered into with executive agencies. 

4 (3) SCOPE OF ALLOWANCE.—The Regulation at a minimum shall 

5 provide that a solicitation for the acquisition of property or services 

6 may not set forth any requirement or evaluation criteria that would—

7 (A) render an offeror ineligible to enter into a contract on the 

8 basis of the inclusion of a plan of the offeror to allow the offeror’s 

9 employees to telecommute, unless the contracting officer concerned 

10 first determines that the requirements of the agency, including se11 curity requirements, cannot be met if telecommuting is allowed 

12 and documents in writing the basis for the determination; or 

13 (B) reduce the scoring of an offer on the basis of the inclusion 

14 in the offer of a plan of the offeror to allow the offeror’s employ15 ees to telecommute, unless the contracting officer concerned first 

16 determines that the requirements of the agency, including security 

17 requirements, would be adversely impacted if telecommuting is 

18 permitted and documents in writing the basis for the determina19 tion. 

20 § 3306. Preference for commercial items 

21 (a) RELATIONSHIP OF PROVISIONS OF LAW TO PROCUREMENT OF COM22 MERCIAL ITEMS.—

23 (1) THIS PART.—Unless otherwise specifically provided, this section 

24 does not provide that another provision of this part relating to procure25 ment is inapplicable to the procurement of commercial items. 

26 (2) LAWS LISTED IN FEDERAL ACQUISITION REGULATION.—A con27 tract for the procurement of a commercial item entered into by the 

28 head of an executive agency is not subject to a law properly listed in 

29 the Federal Acquisition Regulation pursuant to section 1906 of this 

30 title. 

31 (b) PREFERENCE.—The head of each executive agency shall ensure that, 

32 to the maximum extent practicable—

33 (1) requirements of the executive agency with respect to a procure34 ment of supplies or services are stated in terms of—

35 (A) functions to be performed; 

36 (B) performance required; or 

37 (C) essential physical characteristics; 

38 (2) those requirements are defined so that commercial items or, to 

39 the extent that commercial items suitable to meet the executive agen40 cy’s needs are not available, nondevelopmental items other than com41 mercial items may be procured to fulfill those requirements; and 
81

•HR 4320 IH 

1 (3) offerors of commercial items and nondevelopmental items other 

2 than commercial items are provided an opportunity to compete in any 

3 procurement to fill those requirements. 

4 (c) IMPLEMENTATION.—The head of each executive agency shall ensure 

5 that procurement officials in that executive agency, to the maximum extent 

6 practicable—

7 (1) acquire commercial items or nondevelopmental items other than 

8 commercial items to meet the needs of the executive agency; 

9 (2) require that prime contractors and subcontractors at all levels 

10 under contracts of the executive agency incorporate commercial items 

11 or nondevelopmental items other than commercial items as components 

12 of items supplied to the executive agency; 

13 (3) modify requirements in appropriate cases to ensure that the re14 quirements can be met by commercial items or, to the extent that com15 mercial items suitable to meet the executive agency’s needs are not 

16 available, nondevelopmental items other than commercial items; 

17 (4) state specifications in terms that enable and encourage bidders 

18 and offerors to supply commercial items or, to the extent that commer19 cial items suitable to meet the executive agency’s needs are not avail20 able, nondevelopmental items other than commercial items in response 

21 to the executive agency solicitations; 

22 (5) revise the executive agency’s procurement policies, practices, and 

23 procedures not required by law to reduce any impediments in those 

24 policies, practices, and procedures to the acquisition of commercial 

25 items; and 

26 (6) require training of appropriate personnel in the acquisition of 

27 commercial items. 

28 (d) MARKET RESEARCH.—

29 (1) WHEN TO BE USED.—The head of an executive agency shall con30 duct market research appropriate to the circumstances—

31 (A) before developing new specifications for a procurement by 

32 that executive agency; and 

33 (B) before soliciting bids or proposals for a contract in excess 

34 of the simplified acquisition threshold. 

35 (2) USE OF RESULTS.—The head of an executive agency shall use 

36 the results of market research to determine whether commercial items 

37 or, to the extent that commercial items suitable to meet the executive 

38 agency’s needs are not available, nondevelopmental items other than 

39 commercial items are available that—

40 (A) meet the executive agency’s requirements; 
82

•HR 4320 IH 

1 (B) could be modified to meet the executive agency’s require2 ments; or 

3 (C) could meet the executive agency’s requirements if those re4 quirements were modified to a reasonable extent. 

5 (3) ONLY MINIMUM INFORMATION REQUIRED TO BE SUBMITTED.—

6 In conducting market research, the head of an executive agency should 

7 not require potential sources to submit more than the minimum infor8 mation that is necessary to make the determinations required in para9 graph (2). 

10 (e) REGULATIONS.—

11 (1) IN GENERAL.—The Federal Acquisition Regulation shall provide 

12 regulations to implement this section and sections 102–104 and 109 

13 of this title. 

14 (2) CONTRACT CLAUSES.—

15 (A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’ 

16 includes a transfer of commercial items between divisions, subsidi17 aries, or affiliates of a contractor or subcontractor. 

18 (B) LIST OF CLAUSES TO BE INCLUDED.—The regulations pre19 scribed under paragraph (1) shall contain a list of contract clauses 

20 to be included in contracts for the acquisition of commercial end 

21 items. To the maximum extent practicable, the list shall include 

22 only those contract clauses—

23 (i) that are required to implement provisions of law or ex24 ecutive orders applicable to acquisitions of commercial items 

25 or commercial components; or 

26 (ii) that are determined to be consistent with standard 

27 commercial practice. 

28 (C) REQUIREMENTS OF PRIME CONTRACTOR.—The regulations 

29 shall provide that the Federal Government shall not require a 

30 prime contractor to apply to any of its divisions, subsidiaries, af31 filiates, subcontractors, or suppliers that are furnishing commer32 cial items any contract clause except those—

33 (i) that are required to implement provisions of law or ex34 ecutive orders applicable to subcontractors furnishing com35 mercial items or commercial components; or 

36 (ii) that are determined to be consistent with standard 

37 commercial practice. 

38 (D) CLAUSES THAT MAY BE USED IN A CONTRACT.—To the 

39 maximum extent practicable, only the contract clauses listed pur40 suant to subparagraph (B) may be used in a contract, and only 

41 the contract clauses referred to in subparagraph (C) may be re-
83

•HR 4320 IH 

1 quired to be used in a subcontract, for the acquisition of commer2 cial items or commercial components by or for an executive agen3 cy. 

4 (E) WAIVER OF CONTRACT CLAUSES.—The Federal Acquisition 

5 Regulation shall provide standards and procedures for waiving the 

6 use of contract clauses required pursuant to subparagraph (B), 

7 other than those required by law, including standards for deter8 mining the cases in which a waiver is appropriate. 

9 (3) MARKET ACCEPTANCE.—

10 (A) REQUIREMENT OF OFFERORS.—The Federal Acquisition 

11 Regulation shall provide that under appropriate conditions the 

12 head of an executive agency may require offerors to demonstrate 

13 that the items offered—

14 (i) have achieved commercial market acceptance or been 

15 satisfactorily supplied to an executive agency under current or 

16 recent contracts for the same or similar requirements; and 

17 (ii) otherwise meet the item description, specifications, or 

18 other criteria prescribed in the public notice and solicitation 

19 relating to the contract. 

20 (B) REGULATION TO PROVIDE GUIDANCE ON CRITERIA.—The 

21 Federal Acquisition Regulation shall provide guidance to ensure 

22 that the criteria for determining commercial market acceptance in23 clude the consideration of—

24 (i) the minimum needs of the executive agency concerned; 

25 and 

26 (ii) the entire relevant commercial market, including small 

27 businesses. 

28 (4) PROVISIONS RELATING TO TYPES OF CONTRACTS.—

29 (A) TYPES OF CONTRACTS THAT MAY BE USED.—The Federal 

30 Acquisition Regulation shall include, for acquisitions of commercial 

31 items—

32 (i) a requirement that firm, fixed price contracts or fixed 

33 price with economic price adjustment contracts be used to the 

34 maximum extent practicable; 

35 (ii) a prohibition on use of cost type contracts; and 

36 (iii) subject to subparagraph (B), authority for use of a 

37 time-and-materials or labor-hour contract for the procurement 

38 of commercial services that are commonly sold to the general 

39 public through those contracts and are purchased by the pro40 curing agency on a competitive basis. 
84

•HR 4320 IH 

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 of 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 the risk of the contractor; 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 Govern31 ment to authorize use of time-and-materials or labor32 hour contracts for purchases of the commercial services 

33 in the category. 

34 (5) CONTRACT QUALITY REQUIREMENTS.—Regulations prescribed 

35 under paragraph (1) shall include provisions that—

36 (A) to the maximum extent practicable allow a contractor under 

37 a commercial items acquisition to use the existing quality assur38 ance system of the contractor as a substitute for compliance with 

39 an otherwise applicable requirement for the Government to inspect 

40 or test the commercial items before the contractor’s tender of 

41 those items for acceptance by the Government;
85

•HR 4320 IH 

1 (B) to the maximum extent practicable require that the execu2 tive agency take advantage of warranties (including extended war3 ranties) offered by offerors of commercial items and use those 

4 warranties for the repair and replacement of commercial items; 

5 and 

6 (C) set forth guidance regarding the use of past performance of 

7 commercial items and sources as a factor in contract award deci8 sions. 

9 § 3307. Planning for future competition in contracts for 

10 major systems 

11 (a) DEVELOPMENT CONTRACT.—

12 (1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In pre13 paring a solicitation for the award of a development contract for a 

14 major system, the head of an agency shall consider requiring in the so15 licitation that an offeror include in its offer proposals described in 

16 paragraph (2). In determining whether to require the proposals, the 

17 head of the agency shall consider the purposes for which the system 

18 is being procured and the technology necessary to meet the system’s 

19 required capabilities. If the proposals are required, the head of the 

20 agency shall consider them in evaluating the offeror’s price. 

21 (2) CONTENTS OF PROPOSALS.—The proposals that the head of an 

22 agency is to consider requiring in a solicitation for the award of a de23 velopment contract are the following: 

24 (A) Proposals to incorporate in the design of the major system 

25 items that are currently available within the supply system of the 

26 Federal agency responsible for the major system, available else27 where in the national supply system, or commercially available 

28 from more than one source. 

29 (B) With respect to items that are likely to be required in sub30 stantial quantities during the system’s service life, proposals to in31 corporate in the design of the major system items that the Federal 

32 Government will be able to acquire competitively in the future. 

33 (b) PRODUCTION CONTRACT.—

34 (1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In pre35 paring a solicitation for the award of a production contract for a major 

36 system, the head of an agency shall consider requiring in the solicita37 tion that an offeror include in its offer proposals described in para38 graph (2). In determining whether to require the proposals, the head 

39 of the agency shall consider the purposes for which the system is being 

40 procured and the technology necessary to meet the system’s required 
86

•HR 4320 IH 

1 capabilities. If the proposals are required, the head of the agency shall 

2 consider them in evaluating the offeror’s price. 

3 (2) CONTENT OF PROPOSALS.—The proposals that the head of an 

4 agency is to consider requiring in a solicitation for the award of a pro5 duction contract are proposals identifying opportunities to ensure that 

6 the Government will be able to obtain on a competitive basis items pro7 cured in connection with the system that are likely to be reprocured 

8 in substantial quantities during the service life of the system. Proposals 

9 submitted in response to this requirement may include the following: 

10 (A) Proposals to provide to the Government the right to use 

11 technical data to be provided under the contract for competitive 

12 reprocurement of the item, together with the cost to the Govern13 ment of acquiring the data and the right to use the data. 

14 (B) Proposals for the qualification or development of multiple 

15 sources of supply for the item. 

16 (c) CONSIDERATION OF FACTORS AS OBJECTIVES IN NEGOTIATIONS.—

17 If the head of an agency is making a noncompetitive award of a develop18 ment contract or a production contract for a major system, the factors spec19 ified in subsections (a) and (b) to be considered in evaluating an offer for 

20 a contract may be considered as objectives in negotiating the contract to 

21 be awarded. 

22 § 3308. Design-build selection procedures 

23 (a) AUTHORIZATION.—Unless the traditional acquisition approach of de24 sign-bid-build established under chapter 11 of title 40 or another acquisition 

25 procedure authorized by law is used, the head of an executive agency shall 

26 use the two-phase selection procedures authorized in this section for enter27 ing into a contract for the design and construction of a public building, fa28 cility, or work when a determination is made under subsection (b) that the 

29 procedures are appropriate for use. 

30 (b) CRITERIA FOR USE.—A contracting officer shall make a determina31 tion whether two-phase selection procedures are appropriate for use for en32 tering into a contract for the design and construction of a public building, 

33 facility, or work when—

34 (1) the contracting officer anticipates that three or more offers will 

35 be received for the contract; 

36 (2) design work must be performed before an offeror can develop a 

37 price or cost proposal for the contract; 

38 (3) the offeror will incur a substantial amount of expense in pre39 paring the offer; and 

40 (4) the contracting officer has considered information such as the 

41 following: 
87

•HR 4320 IH 

1 (A) The extent to which the project requirements have been 

2 adequately defined. 

3 (B) The time constraints for delivery of the project. 

4 (C) The capability and experience of potential contractors. 

5 (D) The suitability of the project for use of the two-phase selec6 tion procedures. 

7 (E) The capability of the agency to manage the two-phase selec8 tion process. 

9 (F) Other criteria established by the agency. 

10 (c) PROCEDURES DESCRIBED.—Two-phase selection procedures consist of 

11 the following: 

12 (1) DEVELOPMENT OF SCOPE OF WORK STATEMENT.—The agency 

13 develops, either in-house or by contract, a scope of work statement for 

14 inclusion in the solicitation that defines the project and provides pro15 spective offerors with sufficient information regarding the Federal Gov16 ernment’s requirements (which may include criteria and preliminary de17 sign, budget parameters, and schedule or delivery requirements) to en18 able the offerors to submit proposals that meet the Government’s 

19 needs. If the agency contracts for development of the scope of work 

20 statement, the agency shall contract for architectural and engineering 

21 services as defined by and in accordance with chapter 11 of title 40. 

22 (2) SOLICITATION OF PHASE-ONE PROPOSALS.—The contracting offi23 cer solicits phase-one proposals that—

24 (A) include information on the offeror’s—

25 (i) technical approach; and 

26 (ii) technical qualifications; and 

27 (B) do not include—

28 (i) detailed design information; or 

29 (ii) cost or price information. 

30 (3) EVALUATION FACTORS.—The evaluation factors to be used in 

31 evaluating phase-one proposals are stated in the solicitation and include 

32 specialized experience and technical competence, capability to perform, 

33 past performance of the offeror’s team (including the architect-engineer 

34 and construction members of the team), and other appropriate factors, 

35 except that cost-related or price-related evaluation factors are not per36 mitted. Each solicitation establishes the relative importance assigned to 

37 the evaluation factors and subfactors that must be considered in the 

38 evaluation of phase-one proposals. The agency evaluates phase-one pro39 posals on the basis of the phase-one evaluation factors set forth in the 

40 solicitation. 

41 (4) SELECTION BY CONTRACTING OFFICER.—
88

•HR 4320 IH 

1 (A) NUMBER OF OFFERORS SELECTED AND WHAT IS TO BE

2 EVALUATED.—The contracting officer selects as the most highly 

3 qualified the number of offerors specified in the solicitation to pro4 vide the property or services under the contract and requests the 

5 selected offerors to submit phase-two competitive proposals that 

6 include technical proposals and cost or price information. Each so7 licitation establishes with respect to phase two—

8 (i) the technical submission for the proposal, including de9 sign concepts or proposed solutions to requirements addressed 

10 within the scope of work, or both; and 

11 (ii) the evaluation factors and subfactors, including cost or 

12 price, that must be considered in the evaluations of proposals 

13 in accordance with section 3305(b)–(d) of this title. 

14 (B) SEPARATE EVALUATIONS.—The contracting officer sepa15 rately evaluates the submissions described in clauses (i) and (ii) 

16 of subparagraph (A). 

17 (5) AWARDING OF CONTRACT.—The agency awards the contract in 

18 accordance with section 3307, chapter 37, and section 4702 of this 

19 title. 

20 (d) SOLICITATION TO STATE NUMBER OF OFFERORS TO BE SELECTED

21 FOR PHASE-TWO REQUESTS FOR COMPETITIVE PROPOSALS.—A solicitation 

22 issued pursuant to the procedures described in subsection (c) shall state the 

23 maximum number of offerors that are to be selected to submit competitive 

24 proposals pursuant to subsection (c)(4). The maximum number specified in 

25 the solicitation shall not exceed five unless the agency determines with re26 spect to an individual solicitation that a specified number greater than five 

27 is in the Government’s interest and is consistent with the purposes and ob28 jectives of the two-phase selection process. 

29 (e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Federal Ac30 quisition Regulation shall include guidance—

31 (1) regarding the factors that may be considered in determining 

32 whether the two-phase contracting procedures authorized by subsection 

33 (a) are appropriate for use in individual contracting situations; 

34 (2) regarding the factors that may be used in selecting contractors; 

35 and 

36 (3) providing for a uniform approach to be used Government-wide. 

37 § 3309. Quantities to order 

38 (a) FACTORS AFFECTING QUANTITY TO ORDER.—Each executive agency 

39 shall procure supplies in a quantity that—

40 (1) will result in the total cost and unit cost most advantageous to 

41 the Federal Government, where practicable; and 
89

•HR 4320 IH 

1 (2) does not exceed the quantity reasonably expected to be required 

2 by the agency. 

3 (b) OFFEROR’S OPINION OF QUANTITY.—Each solicitation for a contract 

4 for supplies shall, if practicable, include a provision inviting each offeror re5 sponding to the solicitation to state an opinion on whether the quantity of 

6 supplies proposed to be procured is economically advantageous to the Gov7 ernment and, if applicable, to recommend a quantity that would be more 

8 economically advantageous to the Government. Each recommendation shall 

9 include a quotation of the total price and the unit price for supplies pro10 cured in each recommended quantity. 

11 § 3310. Qualification requirement 

12 (a) DEFINITION.—In this section, the term ‘‘qualification requirement’’ 

13 means a requirement for testing or other quality assurance demonstration 

14 that must be completed by an offeror before award of a contract. 

15 (b) ACTIONS BEFORE ENFORCING QUALIFICATION REQUIREMENT.—Ex16 cept as provided in subsection (c), the head of an agency, before enforcing 

17 any qualification requirement, shall—

18 (1) prepare a written justification stating the necessity for estab19 lishing the qualification requirement and specify why the qualification 

20 requirement must be demonstrated before contract award; 

21 (2) specify in writing and make available to a potential offeror on 

22 request all requirements that a prospective offeror, or its product, must 

23 satisfy to become qualified, with those requirements to be limited to 

24 those least restrictive to meet the purposes necessitating the establish25 ment of the qualification requirement; 

26 (3) specify an estimate of the cost of testing and evaluation likely 

27 to be incurred by a potential offeror to become qualified; 

28 (4) ensure that a potential offeror is provided, on request, a prompt 

29 opportunity to demonstrate at its own expense (except as provided in 

30 subsection (d)) its ability to meet the standards specified for qualifica31 tion using—

32 (A) qualified personnel and facilities—

33 (i) of the agency concerned; 

34 (ii) of another agency obtained through interagency agree35 ment; or 

36 (iii) under contract; or 

37 (B) other methods approved by the agency (including use of ap38 proved testing and evaluation services not provided under contract 

39 to the agency); 
90

•HR 4320 IH 

1 (5) if testing and evaluation services are provided under contract to 

2 the agency for the purposes of clause (4), provide to the extent possible 

3 that those services be provided by a contractor that—

4 (A) is not expected to benefit from an absence of additional 

5 qualified sources; and 

6 (B) is required in the contract to adhere to any restriction on 

7 technical data asserted by the potential offeror seeking qualifica8 tion; and 

9 (6) ensure that a potential offeror seeking qualification is promptly 

10 informed whether qualification is attained and, if not attained, is 

11 promptly furnished specific information about why qualification was 

12 not attained. 

13 (c) APPLICABILITY, WAIVER AUTHORITY, AND REFERRAL OF OFFERS.—

14 (1) APPLICABILITY.—Subsection (b) does not apply to a qualification 

15 requirement established by statute prior to October 30, 1984. 

16 (2) WAIVER AUTHORITY.—

17 (A) SUBMISSION OF DETERMINATION OF

18 UNREASONABLENESS.—Except as provided in subparagraph (C), if 

19 it is unreasonable to specify the standards for qualification that 

20 a prospective offeror or its product must satisfy, a determination 

21 to that effect shall be submitted to the advocate for competition 

22 of the procuring activity responsible for the purchase of the item 

23 subject to the qualification requirement. 

24 (B) AUTHORITY TO GRANT WAIVER.—After considering any 

25 comments of the advocate for competition reviewing the deter26 mination, the head of the procuring activity may waive the re27 quirements of paragraphs (2)–(5) of subsection (b) for up to two 

28 years with respect to the item subject to the qualification require29 ment. 

30 (C) NONAPPLICABILITY TO QUALIFIED PRODUCTS LIST.—Waiv31 er authority under this paragraph does not apply with respect to 

32 a qualified products list. 

33 (3) SUBMISSION AND CONSIDERATION OF OFFER NOT TO BE DE34 NIED.—A potential offeror may not be denied the opportunity to sub35 mit and have considered an offer for a contract solely because the po36 tential offeror has not been identified as meeting a qualification re37 quirement if the potential offeror can satisfy the contracting officer 

38 that the potential offeror or its product meets the standards established 

39 for qualification or can meet those standards before the date specified 

40 for award of the contract.
91

•HR 4320 IH 

1 (4) REFERRAL TO SMALL BUSINESS ADMINISTRATION NOT RE2 QUIRED.—This subsection does not require the referral of an offer to 

3 the Small Business Administration pursuant to section 8(b)(7) of the 

4 Small Business Act (15 U.S.C. 637(b)(7)) if the basis for the referral 

5 is a challenge by the offeror to either the validity of the qualification 

6 requirement or the offeror’s compliance with that requirement. 

7 (5) DELAY OF PROCUREMENT NOT REQUIRED.—The head of an 

8 agency need not delay a proposed procurement to comply with sub9 section (b) or to provide a potential offeror with an opportunity to dem10 onstrate its ability to meet the standards specified for qualification. 

11 (d) FEWER THAN TWO ACTUAL MANUFACTURERS.—

12 (1) SOLICITATION AND TESTING OF ADDITIONAL SOURCES OR PROD13 UCTS.—If the number of qualified sources or qualified products avail14 able to compete actively for an anticipated future requirement is fewer 

15 than two actual manufacturers or the products of two actual manufac16 turers, respectively, the head of the agency concerned shall—

17 (A) publish notice periodically in the Commerce Business Daily 

18 soliciting additional sources or products to seek qualification, un19 less the contracting officer determines that doing so would com20 promise national security; and 

21 (B) subject to paragraph (2), bear the cost of conducting the 

22 specified testing and evaluation (excluding the cost associated with 

23 producing the item or establishing the production, quality control, 

24 or other system to be tested and evaluated) for a small business 

25 concern or a product manufactured by a small business concern 

26 that has met the standards specified for qualification and that 

27 could reasonably be expected to compete for a contract for that 

28 requirement. 

29 (2) WHEN AGENCY MAY BEAR COST.—The head of the agency con30 cerned may bear the cost under paragraph (1)(B) only if the head of 

31 the agency determines that the additional qualified sources or products 

32 are likely to result in cost savings from increased competition for future 

33 requirements sufficient to offset (within a reasonable period of time 

34 considering the duration and dollar value of anticipated future require35 ments) the cost incurred by the agency. 

36 (3) CERTIFICATION REQUIRED.—The head of the agency shall re37 quire a prospective contractor requesting the Federal Government to 

38 bear testing and evaluation costs under paragraph (1)(B) to certify its 

39 status as a small business concern under section 3 of the Small Busi40 ness Act (15 U.S.C. 632). 
92

•HR 4320 IH 

1 (e) EXAMINATION AND REVALIDATION OF QUALIFICATION REQUIRE2 MENT.—Within seven years after the establishment of a qualification re3 quirement, the need for the requirement shall be examined and the stand4 ards of the requirement revalidated in accordance with the requirements of 

5 subsection (b). This subsection does not apply in the case of a qualification 

6 requirement 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—
93

•HR 4320 IH 

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 14, 1994, the price of the contract to the Government is 

6 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 

18 clause (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 section 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 clause (A) or 

33 (B), the price of the subcontract is expected to exceed $100,000. 

34 (4) SUBCONTRACTOR.—The subcontractor for a subcontract covered 

35 by paragraph (3) shall be required to submit cost or pricing data before 

36 the pricing of a change or modification to the subcontract if—

37 (A) in the case of a change or modification to a subcontract re38 ferred to in paragraph (3)(A) or (B), the price adjustment is ex39 pected to exceed $500,000; and
94

•HR 4320 IH 

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 sub13 mitted—

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 section 3503(a)(3) for submission of cost 

26 or pricing data in the case of subcontracts under that contract or sub27 contract unless the head of the procuring activity granting the waiver deter28 mines that the requirement under that subsection should be waived in the 

29 case of those subcontracts and justifies in writing the reason for the deter30 mination. 

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 

41 value of the amount set forth. Any amount, as so adjusted, that is not even-
95

•HR 4320 IH 

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 subsection (a)(1) or (2), submission of 

21 certified cost or pricing data shall not be required under section 3502 of 

22 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 subsection (a)(1) or (2); and 

26 (2) the modification would not change the contract or subcontract, 

27 as the case may be, from a contract or subcontract for the acquisition 

28 of a commercial item to a contract or subcontract for the acquisition 

29 of an item other than 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. 
96

•HR 4320 IH 

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 
97

•HR 4320 IH 

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 Government did not rely on the defective data submitted by the 

16 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 Government about the total cost of the contract and there was 

33 no agreement about the cost of each item procured under the contract; 

34 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—
98

•HR 4320 IH 

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 Government proves that, had the cost or pricing data 

18 referred to in paragraph (1)(B) been submitted to the Government 

19 before date of agreement on the price of the contract (or price of 

20 the modification), or, if applicable, under subsection (a)(2), an21 other date agreed on by the parties, the submission of the cost or 

22 pricing data would not have resulted in an increase in that price 

23 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 Govern29 ment—

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 Government; and 

34 (B) at the current rate prescribed by the Secretary of the 

35 Treasury under section 6621 of the Internal Revenue Code of 

36 1986 (26 U.S.C. 6621); and 

37 (2) if the submission of the defective data was a knowing submission, 

38 for an additional amount equal to the amount of the overpayment. 

39 (b) LIABILITY NOT AFFECTED BY REFUSAL TO SUBMIT CERTIFI40 CATION.—Any liability under this section of a contractor that submits cost 

41 or pricing data but refuses to submit the certification required by section 
99

•HR 4320 IH 

1 3502(b) of this title with respect to the cost or pricing data is not affected 

2 by the refusal to submit the certification. 

3 § 3508. Right to examine contractor records 

4 For the purpose of evaluating the accuracy, completeness, and currency 

5 of cost or pricing data required to be submitted by this chapter, an execu6 tive agency shall have the authority provided by section 4706(b)(2) of this 

7 title. 

8 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.

9 § 3701. Basis of award and rejection 

10 (a) AWARD.—An executive agency shall evaluate sealed bids and competi11 tive proposals, and award a contract, based solely on the factors specified 

12 in the solicitation. 

13 (b) REJECTION.—All sealed bids or competitive proposals received in re14 sponse to a solicitation may be rejected if the agency head determines that 

15 rejection is in the public interest. 

16 § 3702. Sealed bids 

17 (a) OPENING OF BIDS.—Sealed bids shall be opened publicly at the time 

18 and place stated in the solicitation. 

19 (b) CRITERIA FOR AWARDING CONTRACT.—The executive agency shall 

20 evaluate the bids in accordance with section 3701(a) of this title without 

21 discussions with the bidders and, except as provided in section 3701(b) of 

22 this title, shall award a contract with reasonable promptness to the respon23 sible source whose bid conforms to the solicitation and is most advantageous 

24 to the Federal Government, considering only price and the other price-re25 lated factors included in the solicitation. 

26 (c) NOTICE OF AWARD.—The award of a contract shall be made by trans27 mitting, in writing or by electronic means, notice of the award to the suc28 cessful bidder. Within three days after the date of contract award, the exec29 utive agency shall notify, in writing or by electronic means, each bidder not 

30 awarded the contract that the contract has been awarded. 

31 § 3703. Competitive proposals 

32 (a) EVALUATION AND AWARD.—An executive agency shall evaluate com33 petitive proposals in accordance with section 3701(a) of this title and may 

34 award a contract—
100

•HR 4320 IH 

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 three days after the date of contract award, shall 

26 notify, in writing or by electronic means, all other offerors of the rejection 

27 of their 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 three days 

32 after the date on which the unsuccessful offeror receives the notification of 

33 the contract award, shall be debriefed and furnished the basis for the selec34 tion 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, five days 

37 after 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; 
101

•HR 4320 IH 

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 three days after the date on which the excluded offeror receives notice 

39 of its exclusion, a debriefing prior to award. 

40 (b) WHEN DEBRIEFING TO BE CONDUCTED.—The contracting officer 

41 shall make every effort to debrief the unsuccessful offeror as soon as prac-
102

•HR 4320 IH 

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 subsection (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 the relevant questions posed by the de13 briefed offeror as to whether source selection procedures set forth in 

14 the solicitation, applicable regulations, and other applicable authorities 

15 were followed 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. 
103

•HR 4320 IH 

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—

9 (1) may take any action set out in clauses (A)–(F) of subsection 

10 (b)(1) of section 3554 of title 31; and 

11 (2) may pay costs described in paragraph (1) of section 3554(c) of 

12 title 31 within the limits referred to in paragraph (2) of section 

13 3554(c). 

14 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-plus contracts. 

3906. Share-in-savings contracts.

15 § 3901. Contracts awarded using procedures other than 

16 sealed-bid procedures 

17 (a) AUTHORIZED TYPES.—Except as provided in section 3905 of this 

18 title, contracts awarded after using procedures other than sealed-bid proce19 dures may be of any type which in the opinion of the agency head will pro20 mote the best interests of the Federal Government. 

21 (b) REQUIRED WARRANTY.—

22 (1) CONTENT.—Every contract awarded after using procedures other 

23 than sealed-bid procedures shall contain a suitable warranty, as deter24 mined by the agency head, by the contractor that no person or selling 

25 agency has been employed or retained to solicit or secure the contract 

26 on an agreement or understanding for a commission, percentage, bro27 kerage, or contingent fee, except for bona fide employees or bona fide 

28 established commercial or selling agencies the contractor maintains to 

29 secure business. 

30 (2) REMEDY FOR BREACH OR VIOLATION.—For the breach or viola31 tion of the warranty, the Government may annul the contract without 

32 liability or deduct from the contract price or consideration the full 

33 amount of the commission, percentage, brokerage, or contingent 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. 
104

•HR 4320 IH 

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 an 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 five, 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-period beginning on the date of the notification. 
105

•HR 4320 IH 

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 that is provided, that a cancellation payment shall be made to the 

5 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 of Arms and 

40 Doorkeeper of the Senate may enter into—
106

•HR 4320 IH 

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-plus 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, 
107

•HR 4320 IH 

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 for architectural or engineering services relating to 

5 any public works or utility project may include the contractor’s costs 

6 and shall not exceed six percent of the estimated cost of the contract, 

7 not including the fee, as determined by the agency head at the time 

8 of entering 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 five percent of the total estimated cost of the 

14 prime contract. 

15 (d) RIGHT TO AUDIT.—An authorized representative of a procuring agen16 cy has the right to inspect the plans and to audit the books and records 

17 of a prime contractor or subcontractor engaged in the performance of a cost 

18 or cost-plus-a-fixed-fee contract. 

19 § 3906. Share-in-savings contracts 

20 (a) DEFINITIONS.—In this section—

21 (1) CONTRACTOR.—The term ‘‘contractor’’ means a private entity 

22 that enters into a contract with an agency. 

23 (2) SAVINGS.—The term ‘‘savings’’ means—

24 (A) monetary savings to an agency; or 

25 (B) savings in time or other benefits realized by the agency, in26 cluding enhanced revenue (other than enhanced revenue from the 

27 collection of fees, taxes, debts, claims, or other amounts owed the 

28 Federal Government). 

29 (3) SHARE-IN-SAVINGS CONTRACT.—The term ‘‘share-in-savings con30 tract’’ means a contract under which—

31 (A) a contractor provides solutions for—

32 (i) improving the agency’s mission-related or administrative 

33 processes; or 

34 (ii) accelerating the achievement of agency missions; and 

35 (B) the head of the agency pays the contractor an amount equal 

36 to a portion of the savings the agency derives from—

37 (i) improvements in mission-related or administrative proc38 esses that result from implementing the solution; or 

39 (ii) accelerating the achievement of agency missions. 

40 (b) AUTHORITY TO ENTER INTO CONTRACT.—The head of an executive 

41 agency may enter into a share-in-savings contract for information tech-
108

•HR 4320 IH 

1 nology (as defined in section 11101(6) of title 40) in which the Government 

2 awards a contract to improve mission-related or administrative processes or 

3 to accelerate the achievement of its mission and share with the contractor 

4 in savings achieved through contract performance. 

5 (c) DURATION OF CONTRACT.—

6 (1) IN GENERAL.—Except as provided in paragraph (2), a share-in7 savings contract shall be awarded for a period of not more than five 

8 years. 

9 (2) EXCEPTION.—A share-in-savings contract may be awarded for a 

10 period greater than five years but not more than 10 years if the head 

11 of the agency determines in writing before the contract is awarded 

12 that—

13 (A) the level of risk to be assumed and the investment to be 

14 undertaken by the contractor is likely to inhibit the Government 

15 from obtaining the needed information technology competitively at 

16 a fair and reasonable price if the contract is limited in duration 

17 to a period of not more than five years; and 

18 (B) use of the information technology to be acquired is likely 

19 to continue for a period of time sufficient to generate reasonable 

20 benefit for the Government. 

21 (d) CONTRACT TO BE PERFORMANCE-BASED.—To the maximum extent 

22 practicable, a contract awarded pursuant to this section shall be a perform23 ance-based contract that identifies objective outcomes and contains perform24 ance standards that will be used to measure achievement and milestones 

25 that must be met before payment is made. 

26 (e) SAVINGS SHARE RATIO.—A contract awarded pursuant to this section 

27 shall include a provision containing a quantifiable baseline that is to be the 

28 basis on which a savings share ratio is established that governs the amount 

29 of payment a contractor is to receive under the contract. Before perform30 ance of the contract begins, the senior procurement executive of the agency 

31 shall determine in writing that the terms of the provision are quantifiable 

32 and will likely yield value to the Government. 

33 (f) RETAINING SAVINGS.—The head of the agency may retain savings re34 alized through the use of a share-in-savings contract under this section that 

35 are more than the total amount of savings paid to the contractor under the 

36 contract but may not retain the part of the savings that is attributable to 

37 a decrease in the number of civilian employees of the Government per38 forming the function. Savings shall be credited to the appropriation or fund 

39 against which charges were made to carry out the contract and shall be 

40 used for information technology, except that amounts the agency retains—
109

•HR 4320 IH 

1 (1) without further appropriation, remain available until expended; 

2 and 

3 (2) shall be applied first to fund contingent liabilities associated with 

4 share-in-savings procurements that are not fully funded. 

5 (g) CANCELLATION AND TERMINATION.—

6 (1) IN GENERAL.—A share-in-savings contract entered into under 

7 this section shall be canceled or terminated if amounts are not made 

8 available to continue the contract in a subsequent fiscal year. 

9 (2) SOURCE OF PAYMENT OF CANCELLATION AND TERMINATION

10 COSTS.—The cost of cancellation or termination may be paid out of—

11 (A) appropriations available for the performance of the contract; 

12 (B) appropriations available for acquiring the information tech13 nology procured under the contract and not otherwise obligated; 

14 or 

15 (C) amounts subsequently appropriated to pay cancellation or 

16 termination costs, subject to the limitations in paragraph (4). 

17 (3) AMOUNT OF CANCELLATION OR TERMINATION COST TO BE NE18 GOTIATED.—The amount payable if a share-in-savings contract is can19 celed or terminated shall be negotiated with the contractor when the 

20 contract is entered into. 

21 (4) AUTHORITY TO ENTER INTO CONTRACT WHEN CANCELLATION

22 OR TERMINATION COSTS NOT FULLY FUNDED.—

23 (A) IN GENERAL.—Subject to subparagraph (B), the head of an 

24 executive agency may enter into a share-in-savings contract under 

25 this section in a fiscal year even if amounts are not made specifi26 cally available for the full cost of cancellation or termination if 

27 amounts are available and sufficient to make payments for the 

28 first fiscal year of the contract and the following conditions are 

29 met regarding the funding of cancellation and termination liability: 

30 (i) The amount of unfunded contingent liability for the 

31 contract does not exceed the lesser of—

32 (I) 25 percent of the estimated cost of a cancellation 

33 or termination; or 

34 (II) $5,000,000. 

35 (ii) The Director of the Office of Management and Budget 

36 or the Director’s designee has approved an unfunded contin37 gent liability of more than $1,000,000. 

38 (B) TOTAL NUMBER OF CONTRACTS ALLOWED.—The aggregate 

39 number of contracts that all executive agencies to which this part 

40 applies may enter into under subparagraph (A) may not exceed 

41 five in each of fiscal years 2004 and 2005. 
110

•HR 4320 IH 

1 (h) TERMINATION OF AUTHORITY.—Share-in-service contracts may not 

2 be entered into under this section after September 30, 2005. 

3 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.

4 § 4101. Definitions 

5 In this chapter—

6 (1) DELIVERY ORDER CONTRACT.—The term ‘‘delivery order con7 tract’’ means a contract for property that—

8 (A) does not procure or specify a firm quantity of property 

9 (other than a minimum or maximum quantity); and 

10 (B) provides for the issuance of orders for the delivery of prop11 erty during the period of the contract. 

12 (2) TASK ORDER CONTRACT.—The term ‘‘task order contract’’ 

13 means a contract for services that—

14 (A) does not procure or specify a firm quantity of services 

15 (other than a minimum or maximum quantity); and 

16 (B) provides for the issuance of orders for the performance of 

17 tasks during the period of the contract. 

18 § 4102. Authorities or responsibilities not affected 

19 This chapter does not modify or supersede, and is not intended to impair 

20 or restrict, authorities or responsibilities under chapter 11 of title 40. 

21 § 4103. General authority 

22 (a) AUTHORITY TO AWARD.—Subject to the requirements of this section, 

23 section 4106 of this title, and other applicable law, the head of an executive 

24 agency may enter into a task or delivery order contract for procurement of 

25 services or property. 

26 (b) SOLICITATION.—The solicitation for a task or delivery order contract 

27 shall include—

28 (1) the period of the contract, including the number of options to 

29 extend the contract and the period for which the contract may be ex30 tended under each option; 

31 (2) the maximum quantity or dollar value of the services or property 

32 to be procured under the contract; and 

33 (3) a statement of work, specifications, or other description that rea34 sonably describes the general scope, nature, complexity, and purposes 

35 of the services or property to be procured under the contract. 

36 (c) APPLICABILITY OF RESTRICTION ON USE OF NONCOMPETITIVE PRO37 CEDURES.—The head of an executive agency may use procedures other than 
111

•HR 4320 IH 

1 competitive procedures to enter into a task or delivery order contract under 

2 this section only if an exception in section 3303(a) of this title applies to 

3 the contract and the use of those procedures is approved in accordance with 

4 section 3303(d) of this title. 

5 (d) SINGLE AND MULTIPLE CONTRACT AWARDS.—

6 (1) EXERCISE OF AUTHORITY.—The head of an executive agency 

7 may exercise the authority provided in this section—

8 (A) to award a single task or delivery order contract; or 

9 (B) if the solicitation states that the head of the executive agen10 cy has the option to do so, to award separate task or delivery 

11 order contracts for the same or similar services or property to two 

12 or more sources. 

13 (2) DETERMINATION NOT REQUIRED.—No determination under sec14 tion 3302 of this title is required for an award of multiple task or de15 livery order contracts under paragraph (1)(B). 

16 (3) REGULATIONS.—Regulations implementing this subsection shall 

17 establish—

18 (A) a preference for awarding, to the maximum extent prac19 ticable, multiple task or delivery order contracts for the same or 

20 similar services or property under paragraph (1)(B); and 

21 (B) criteria for determining when award of multiple task or de22 livery order contracts would not be in the best interest of the Fed23 eral Government. 

24 (e) CONTRACT MODIFICATIONS.—A task or delivery order may not in25 crease the scope, period, or maximum value of the task or delivery order 

26 contract under which the order is issued. The scope, period, or maximum 

27 value of the contract may be increased only by modification of the contract. 

28 (f) INAPPLICABILITY TO CONTRACTS FOR ADVISORY AND ASSISTANCE

29 SERVICES.—Except as otherwise specifically provided in section 4105 of this 

30 title, this section does not apply to a task or delivery order contract for the 

31 acquisition of advisory and assistance services (as defined in section 1105(g) 

32 of title 31). 

33 (g) RELATIONSHIP TO OTHER CONTRACTING AUTHORITY.—Nothing in 

34 this section may be construed to limit or expand any authority of the head 

35 of an executive agency or the Administrator of General Services to enter 

36 into schedule, multiple award, or task or delivery order contracts under any 

37 other provision of law.

38 § 4104. Guidance on use of task and delivery order contracts 

39 (a) GUIDANCE IN FEDERAL ACQUISITION REGULATION.—The Federal 

40 Acquisition Regulation issued in accordance with sections 1121(b) and 

41 1302(a)(1) of this title shall provide guidance to agencies on the appropriate 
112

•HR 4320 IH 

1 use of task and delivery order contracts in accordance with this chapter and 

2 sections 2304a–2304d of title 10. 

3 (b) CONTENT OF REGULATIONS.—The regulations issued pursuant to 

4 subsection (a) at a minimum shall provide specific guidance on—

5 (1) the appropriate use of governmentwide and other multiagency 

6 contracts entered into in accordance this chapter and sections 2304a–

7 2304d of title 10; and 

8 (2) steps that agencies should take in entering into and admin9 istering multiple award task and delivery order contracts to ensure 

10 compliance with the requirement in—

11 (A) section 11312 of title 40 for capital planning and invest12 ment control in purchases of information technology products and 

13 services; 

14 (B) section 4106(c) of this title and section 2304c(b) of title 10 

15 to ensure that all contractors are afforded a fair opportunity to 

16 be considered for the award of task and delivery orders; and 

17 (C) section 4106(d) of this title and section 2304c(c) of title 10 

18 for a statement of work in each task or delivery order issued that 

19 clearly specifies all tasks to be performed or property to be deliv20 ered under the order. 

21 (c) FEDERAL SUPPLY SCHEDULES PROGRAM.—The Administrator for 

22 Federal Procurement Policy shall consult with the Administrator of General 

23 Services to assess the effectiveness of the multiple awards schedule program 

24 of the General Services Administration referred to in section 3101(2)(C) of 

25 this title that is administered as the Federal Supply Schedules program. 

26 The assessment shall include examination of—

27 (1) the administration of the program by the Administrator of Gen28 eral Services; and 

29 (2) the ordering and program practices followed by Federal customer 

30 agencies in using schedules established under the program. 

31 § 4105. Advisory and assistance services 

32 (a) DEFINITION.—In this section, the term ‘‘advisory and assistance serv33 ices’’ has the same meaning given that term in section 1105(g) of title 31. 

34 (b) AUTHORITY TO AWARD.—

35 (1) IN GENERAL.—Subject to the requirements of this section, sec36 tion 4106 of this title, and other applicable law, the head of an execu37 tive agency may enter into a task order contract for procurement of 

38 advisory and assistance services. 

39 (2) ONLY UNDER THIS SECTION.—The head of an executive agency 

40 may enter into a task order contract for advisory and assistance serv41 ices only under this section. 
113

•HR 4320 IH 

1 (c) LIMITATION ON CONTRACT PERIOD.—The period of a task order con2 tract entered into under this section, including all periods of extensions of 

3 the contract under options, modifications, or otherwise, may not exceed five 

4 years unless a longer period is specifically authorized in a law that is appli5 cable to the contract. 

6 (d) CONTENT OF NOTICE.—The notice required by section 1707 of this 

7 title and section 8(e) of the Small Business Act (15 U.S.C. 637(e)) shall 

8 reasonably and fairly describe the general scope, magnitude, and duration 

9 of the proposed task order contract in a manner that would reasonably en10 able a potential offeror to decide whether to request the solicitation and con11 sider submitting an offer. 

12 (e) REQUIRED CONTENT OF SOLICITATION AND CONTRACT.—

13 (1) SOLICITATION.—The solicitation shall include the information 

14 (regarding services) described in section 4103(b) of this title. 

15 (2) CONTRACT.—A task order contract entered into under this sec16 tion shall contain the same information that is required by paragraph 

17 (1) to be included in the solicitation of offers for that contract. 

18 (f) MULTIPLE AWARDS.—

19 (1) AUTHORITY TO MAKE MULTIPLE AWARDS.—On the basis of one 

20 solicitation, the head of an executive agency may award separate task 

21 order contracts under this section for the same or similar services to 

22 two or more sources if the solicitation states that the head of the exec23 utive agency has the option to do so. 

24 (2) CONTENT OF SOLICITATION.—In the case of a task order con25 tract for advisory and assistance services to be entered into under this 

26 section, if the contract period is to exceed three years and the contract 

27 amount is estimated to exceed $10,000,000 (including all options), the 

28 solicitation shall—

29 (A) provide for a multiple award authorized under paragraph 

30 (1); and 

31 (B) include a statement that the head of the executive agency 

32 may also elect to award only one task order contract if the head 

33 of the executive agency determines in writing that only one of the 

34 offerors is capable of providing the services required at the level 

35 of quality required. 

36 (3) NONAPPLICATION.—Paragraph (2) does not apply in the case of 

37 a solicitation for which the head of the executive agency concerned de38 termines in writing that, because the services required under the con39 tract are unique or highly specialized, it is not practicable to award 

40 more than one contract. 

41 (g) CONTRACT MODIFICATIONS.—
114

•HR 4320 IH 

1 (1) INCREASE IN SCOPE, PERIOD, OR MAXIMUM VALUE OF CONTRACT

2 ONLY BY MODIFICATION OF CONTRACT.—A task order may not in3 crease the scope, period, or maximum value of the task order contract 

4 under which the order is issued. The scope, period, or maximum value 

5 of the contract may be increased only by modification of the contract. 

6 (2) USE OF COMPETITIVE PROCEDURES.—Unless use of procedures 

7 other than competitive procedures is authorized by an exception in sec8 tion 3303(a) of this title and approved in accordance with section 

9 3303(d) of this title, competitive procedures shall be used for making 

10 such a modification. 

11 (3) NOTICE.—Notice regarding the modification shall be provided in 

12 accordance with section 1707 of this title and section 8(e) of the Small 

13 Business Act (15 U.S.C. 637(e)). 

14 (h) CONTRACT EXTENSIONS.—

15 (1) WHEN CONTRACT MAY BE EXTENDED.—Notwithstanding the 

16 limitation on the contract period set forth in subsection (c) or in a so17 licitation or contract pursuant to subsection (f), a contract entered into 

18 by the head of an executive agency under this section may be extended 

19 on a sole-source basis for a period not exceeding six months if the head 

20 of the executive agency determines that—

21 (A) the award of a follow-on contract has been delayed by cir22 cumstances that were not reasonably foreseeable at the time the 

23 initial contract was entered into; and 

24 (B) the extension is necessary to ensure continuity of the receipt 

25 of services pending the award of, and commencement of perform26 ance under, the follow-on contract. 

27 (2) LIMIT OF ONE EXTENSION.—A task order contract may be ex28 tended under paragraph (1) only once and only in accordance with the 

29 limitations and requirements of this subsection. 

30 (i) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not 

31 apply to a contract for the acquisition of property or services that includes 

32 acquisition of advisory and assistance services if the head of the executive 

33 agency entering into the contract determines that, under the contract, advi34 sory and assistance services are necessarily incident to, and not a significant 

35 component of, the contract.

36 § 4106. Orders 

37 (a) APPLICATION.—This section applies to task and delivery order con38 tracts entered into under sections 4103 and 4105 of this title. 

39 (b) ACTIONS NOT REQUIRED FOR ISSUANCE OF ORDERS.—The following 

40 actions are not required for issuance of a task or delivery order under a 

41 task or delivery order contract: 
115

•HR 4320 IH 

1 (1) A separate notice for the order under section 1707 of this title 

2 or section 8(e) of the Small Business Act (15 U.S.C. 637(e)). 

3 (2) Except as provided in subsection (c), a competition (or a waiver 

4 of competition approved in accordance with section 3303(d) of this 

5 title) that is separate from that used for entering into the contract. 

6 (c) MULTIPLE AWARD CONTRACTS.—When multiple contracts are award7 ed under section 4103(d)(1)(B) or 4105(f) of this title, all contractors 

8 awarded the contracts shall be provided a fair opportunity to be considered, 

9 pursuant to procedures set forth in the contracts, for each task or delivery 

10 order in excess of $2,500 that is to be issued under any of the contracts, 

11 unless—

12 (1) the executive agency’s need for the services or property ordered 

13 is of such unusual urgency that providing the opportunity to all of 

14 those contractors would result in unacceptable delays in fulfilling that 

15 need; 

16 (2) only one of those contractors is capable of providing the services 

17 or property required at the level of quality required because the services 

18 or property ordered are unique or highly specialized; 

19 (3) the task or delivery order should be issued on a sole-source basis 

20 in the interest of economy and efficiency because it is a logical follow21 on to a task or delivery order already issued on a competitive basis; 

22 or 

23 (4) it is necessary to place the order with a particular contractor to 

24 satisfy a minimum guarantee. 

25 (d) STATEMENT OF WORK.—A task or delivery order shall include a 

26 statement of work that clearly specifies all tasks to be performed or prop27 erty to be delivered under the order. 

28 (e) PROTESTS.—A protest is not authorized in connection with the 

29 issuance or proposed issuance of a task or delivery order except for a pro30 test on the ground that the order increases the scope, period, or maximum 

31 value of the contract under which the order is issued. 

32 (f) TASK AND DELIVERY ORDER OMBUDSMAN.—

33 (1) APPOINTMENT OR DESIGNATION AND RESPONSIBILITIES.—The 

34 head of each executive agency who awards multiple task or delivery 

35 order contracts under section 4103(d)(1)(B) or 4105(f) of this title 

36 shall appoint or designate a task and delivery order ombudsman who 

37 shall be responsible for reviewing complaints from the contractors on 

38 those contracts and ensuring that all of the contractors are afforded 

39 a fair opportunity to be considered for task or delivery orders when re40 quired under subsection (c). 
116

•HR 4320 IH 

1 (2) WHO IS ELIGIBLE.—The task and delivery order ombudsman 

2 shall be a senior agency official who is independent of the contracting 

3 officer for the contracts and may be the executive agency’s advocate 

4 for competition. 

5 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.

6 § 4301. Definitions 

7 In this chapter—

8 (1) COMPENSATION.—The term ‘‘compensation’’, for a fiscal year, 

9 means the total amount of wages, salary, bonuses, and deferred com10 pensation for the fiscal year, whether paid, earned, or otherwise accru11 ing, as recorded in an employer’s cost accounting records for the fiscal 

12 year. 

13 (2) COVERED CONTRACT.—The term ‘‘covered contract’’ means a 

14 contract for an amount in excess of $500,000 that is entered into by 

15 an executive agency, except that the term does not include a fixed-price 

16 contract without cost incentives or any firm, fixed price contract for 

17 the purchase of commercial items. 

18 (3) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year estab19 lished by a contractor for accounting purposes. 

20 (4) SENIOR EXECUTIVE.—The term ‘‘senior executive’’, with respect 

21 to a contractor, means the five most highly compensated employees in 

22 management positions at each home office and each segment of the 

23 contractor. 

24 § 4302. Adjustment of threshold amount of covered contract 

25 Effective on October 1 of each year that is divisible by five, the amount 

26 set forth in section 4301(2) shall be adjusted to the equivalent amount in 

27 constant fiscal year 1994 dollars. An adjusted amount that is not evenly di28 visible by $50,000 shall be rounded to the nearest multiple of $50,000. If 

29 an amount is evenly divisible by $25,000 but is not evenly divisible by 

30 $50,000, the amount shall be rounded to the next higher multiple of 

31 $50,000. 

32 § 4303. Effect of submission of unallowable costs 

33 (a) INDIRECT COST THAT VIOLATES FEDERAL ACQUISITION REGULA34 TION COST PRINCIPLE.—An executive agency shall require that a covered 
117

•HR 4320 IH 

1 contract provide that if the contractor submits to the executive agency a 

2 proposal for settlement of indirect costs incurred by the contractor for any 

3 period after those costs have been accrued and if that proposal includes the 

4 submission of a cost that is unallowable because the cost violates a cost 

5 principle in the Federal Acquisition Regulation or an executive agency sup6 plement to the Federal Acquisition Regulation, the cost shall be disallowed. 

7 (b) PENALTY FOR VIOLATION OF COST PRINCIPLE.—

8 (1) UNALLOWABLE COST IN PROPOSAL.—If the executive agency de9 termines that a cost submitted by a contractor in its proposal for set10 tlement is expressly unallowable under a cost principle referred to in 

11 subsection (a) that defines the allowability of specific selected costs, the 

12 executive agency shall assess a penalty against the contractor in an 

13 amount equal to—

14 (A) the amount of the disallowed cost allocated to covered con15 tracts for which a proposal for settlement of indirect costs has 

16 been submitted; plus 

17 (B) interest (to be computed based on provisions in the Federal 

18 Acquisition Regulation) to compensate the Federal Government 

19 for the use of the amount which a contractor has been paid in ex20 cess of the amount to which the contractor was entitled. 

21 (2) COST DETERMINED TO BE UNALLOWABLE BEFORE PROPOSAL

22 SUBMITTED.—If the executive agency determines that a proposal for 

23 settlement of indirect costs submitted by a contractor includes a cost 

24 determined to be unallowable in the case of that contractor before the 

25 submission of that proposal, the executive agency shall assess a penalty 

26 against the contractor in an amount equal to two times the amount of 

27 the disallowed cost allocated to covered contracts for which a proposal 

28 for settlement of indirect costs has been submitted. 

29 (c) WAIVER OF PENALTY.—The Federal Acquisition Regulation shall pro30 vide for a penalty under subsection (b) to be waived in the case of a con31 tractor’s proposal for settlement of indirect costs when—

32 (1) the contractor withdraws the proposal before the formal initiation 

33 of an audit of the proposal by the Government and resubmits a revised 

34 proposal;

35 (2) the amount of unallowable costs subject to the penalty is insig36 nificant; or 

37 (3) the contractor demonstrates, to the contracting officer’s satisfac38 tion, that—

39 (A) it has established appropriate policies and personnel train40 ing and an internal control and review system that provide assur41 ances that unallowable costs subject to penalties are precluded 
118

•HR 4320 IH 

1 from being included in the contractor’s proposal for settlement of 

2 indirect costs; and 

3 (B) the unallowable costs subject to the penalty were inadvert4 ently incorporated into the proposal. 

5 (d) APPLICABILITY OF CONTRACT DISPUTES PROCEDURE.—An action of 

6 an executive agency under subsection (a) or (b)—

7 (1) shall be considered a final decision for the purposes of section 

8 6903 of this title; and 

9 (2) is appealable in the manner provided in section 6904(a) of this 

10 title. 

11 § 4304. Specific costs not allowable 

12 (a) SPECIFIC COSTS.—The following costs are not allowable under a cov13 ered contract: 

14 (1) Costs of entertainment, including amusement, diversion, and so15 cial activities, and any costs directly associated with those costs (such 

16 as tickets to shows or sports events, meals, lodging, rentals, transpor17 tation, and gratuities). 

18 (2) Costs incurred to influence (directly or indirectly) legislative ac19 tion on any matter pending before Congress, a State legislature, or a 

20 legislative body of a political subdivision of a State. 

21 (3) Costs incurred in defense of any civil or criminal fraud pro22 ceeding or similar proceeding (including filing of any false certification) 

23 brought by the Federal Government where the contractor is found lia24 ble or had pleaded nolo contendere to a charge of fraud. 

25 (4) Payments of fines and penalties resulting from violations of, or 

26 failure to comply with, Federal, State, local, or foreign laws and regula27 tions, except when incurred as a result of compliance with specific 

28 terms and conditions of the contract or specific written instructions 

29 from the contracting officer authorizing in advance those payments in 

30 accordance with applicable provisions of the Federal Acquisition Regu31 lation. 

32 (5) Costs of membership in any social, dining, or country club or or33 ganization. 

34 (6) Costs of alcoholic beverages. 

35 (7) Contributions or donations, regardless of the recipient. 

36 (8) Costs of advertising designed to promote the contractor or its 

37 products. 

38 (9) Costs of promotional items and memorabilia, including models, 

39 gifts, and souvenirs. 

40 (10) Costs for travel by commercial aircraft that exceed the amount 

41 of the standard commercial fare. 
119

•HR 4320 IH 

1 (11) Costs incurred in making any payment (commonly known as a 

2 ‘‘golden parachute payment’’) that is—

3 (A) in an amount in excess of the normal severance pay paid 

4 by the contractor to an employee on termination of employment; 

5 and 

6 (B) paid to the employee contingent on, and following, a change 

7 in management control over, or ownership of, the contractor or a 

8 substantial portion of the contractor’s assets. 

9 (12) Costs of commercial insurance that protects against the costs 

10 of the contractor for correction of the contractor’s own defects in mate11 rials or workmanship. 

12 (13) Costs of severance pay paid by the contractor to foreign nation13 als employed by the contractor under a service contract performed out14 side the United States, to the extent that the amount of severance pay 

15 paid in any case exceeds the amount paid in the industry involved 

16 under the customary or prevailing practice for firms in that industry 

17 providing similar services in the United States, as determined under 

18 the Federal Acquisition Regulation. 

19 (14) Costs of severance pay paid by the contractor to a foreign na20 tional employed by the contractor under a service contract performed 

21 in a foreign country if the termination of the employment of the foreign 

22 national is the result of the closing of, or the curtailment of activities 

23 at, a Government facility in that country at the request of the govern24 ment of that country. 

25 (15) Costs incurred by a contractor in connection with any criminal, 

26 civil, or administrative proceeding commenced by the Government or a 

27 State, to the extent provided in section 4310 of this title. 

28 (16) Costs of compensation of senior executives of contractors for a 

29 fiscal year, regardless of the contract funding source, to the extent that 

30 the compensation exceeds the benchmark compensation amount deter31 mined applicable for the fiscal year by the Administrator for Federal 

32 Procurement Policy under section 1127 of this title. 

33 (b) WAIVER OF SEVERANCE PAY RESTRICTIONS FOR FOREIGN NATION34 ALS.—

35 (1) EXECUTIVE AGENCY DETERMINATION.—Pursuant to the Federal 

36 Acquisition Regulation and subject to the availability of appropriations, 

37 an executive agency, in awarding a covered contract, may waive the ap38 plication of clauses (13) and (14) of subsection (a) to that contract if 

39 the executive agency determines that—

40 (A) the application of clauses (13) and (14) to that contract 

41 would adversely affect the continuation of a program, project, or 
120

•HR 4320 IH 

1 activity that provides significant support services for employees of 

2 the executive agency posted outside the United States; 

3 (B) the contractor has taken (or has established plans to take) 

4 appropriate actions within the contractor’s control to minimize the 

5 amount and number of incidents of the payment of severance pay 

6 by the contractor to employees under the contract who are foreign 

7 nationals; and 

8 (C) the payment of severance pay is necessary to comply with 

9 a law that is generally applicable to a significant number of busi10 nesses in the country in which the foreign national receiving the 

11 payment performed services under the contract or is necessary to 

12 comply with a collective bargaining agreement. 

13 (2) SOLICITATION TO INCLUDE STATEMENT ABOUT WAIVER.—An ex14 ecutive agency shall include in the solicitation for a covered contract 

15 a statement indicating—

16 (A) that a waiver has been granted under paragraph (1) for the 

17 contract; or 

18 (B) whether the executive agency will consider granting a waiver 

19 and, if the executive agency will consider granting a waiver, the 

20 criteria to be used in granting the waiver. 

21 (3) DETERMINATION TO BE MADE BEFORE CONTRACT AWARDED.—

22 An executive agency shall make the final determination whether to 

23 grant a waiver under paragraph (1) with respect to a covered contract 

24 before award of the contract. 

25 (c) ESTABLISHMENT OF DEFINITIONS, EXCLUSIONS, LIMITATIONS, AND

26 QUALIFICATIONS.—The provisions of the Federal Acquisition Regulation 

27 implementing this chapter may establish appropriate definitions, exclusions, 

28 limitations, and qualifications. A submission by a contractor of costs that 

29 are incurred by the contractor and that are claimed to be allowable under 

30 Department of Energy management and operating contracts shall be consid31 ered a proposal for settlement of indirect costs incurred by the contractor 

32 for any period after those costs have been accrued.

33 § 4305. Required regulations 

34 (a) IN GENERAL.—The Federal Acquisition Regulation shall contain pro35 visions on the allowability of contractor costs. Those provisions shall define 

36 in detail and in specific terms the costs that are unallowable, in whole or 

37 in part, under covered contracts. 

38 (b) SPECIFIC ITEMS.—The regulations shall, at a minimum, clarify the 

39 cost principles applicable to contractor costs of the following: 

40 (1) Air shows. 

41 (2) Membership in civic, community, and professional organizations. 
121

•HR 4320 IH 

1 (3) Recruitment. 

2 (4) Employee morale and welfare. 

3 (5) Actions to influence (directly or indirectly) executive branch ac4 tion on regulatory and contract matters (other than costs incurred in 

5 regard to contract proposals pursuant to solicited or unsolicited bids). 

6 (6) Community relations. 

7 (7) Dining facilities. 

8 (8) Professional and consulting services, including legal services. 

9 (9) Compensation. 

10 (10) Selling and marketing. 

11 (11) Travel. 

12 (12) Public relations. 

13 (13) Hotel and meal expenses. 

14 (14) Expense of corporate aircraft. 

15 (15) Company-furnished automobiles. 

16 (16) Advertising. 

17 (17) Conventions. 

18 (c) ADDITIONAL REQUIREMENTS.—

19 (1) WHEN QUESTIONED COSTS MAY BE RESOLVED.—The Federal 

20 Acquisition Regulation shall require that a contracting officer not re21 solve any questioned costs until the contracting officer has obtained—

22 (A) adequate documentation of those costs; and 

23 (B) the opinion of the contract auditor on the allowability of 

24 those costs. 

25 (2) PRESENCE OF CONTRACT AUDITOR.—The Federal Acquisition 

26 Regulation shall provide that, to the maximum extent practicable, a 

27 contract auditor be present at any negotiation or meeting with the con28 tractor regarding a determination of the allowability of indirect costs 

29 of the contractor. 

30 (3) SETTLEMENT TO REFLECT AMOUNT OF INDIVIDUAL QUES31 TIONED COSTS.—The Federal Acquisition Regulation shall require that 

32 all categories of costs designated in the report of a contract auditor as 

33 questioned with respect to a proposal for settlement be resolved in a 

34 manner so that the amount of the individual questioned costs that are 

35 paid will be reflected in the settlement. 

36 § 4306. Applicability of regulations to subcontractors 

37 The regulations referred to in subsections 4304 and 4305(a) and (b) of 

38 this title shall require prime contractors of a covered contract, to the max39 imum extent practicable, to apply the provisions of those regulations to all 

40 subcontractors of the covered contract. 
122

•HR 4320 IH 

1 § 4307. Contractor certification 

2 (a) CONTENT AND FORM.—A proposal for settlement of indirect costs ap3 plicable to a covered contract shall include a certification by an official of 

4 the contractor that, to the best of the certifying official’s knowledge and be5 lief, all indirect costs included in the proposal are allowable. The certifi6 cation shall be in a form prescribed in the Federal Acquisition Regulation. 

7 (b) WAIVER.—An executive agency may, in an exceptional case, waive the 

8 requirement for certification under subsection (a) in the case of a contract 

9 if the agency—

10 (1) determines that it would be in the interest of the Federal Gov11 ernment to waive the certification; and 

12 (2) states in writing the reasons for the determination and makes 

13 the determination available to the public. 

14 § 4308. Penalties for submission of cost known to be unal15 lowable 

16 The submission to an executive agency of a proposal for settlement of 

17 costs for any period after those costs have been accrued that includes a cost 

18 that is expressly specified by statute or regulation as being unallowable, 

19 with the knowledge that the cost is unallowable, is subject to section 287 

20 of title 18 and section 3729 of title 31. 

21 § 4309. Burden of proof on contractor 

22 In a proceeding before a board of contract appeals, the United States 

23 Court of Federal Claims, or any other Federal court in which the reason24 ableness of indirect costs for which a contractor seeks reimbursement from 

25 the Federal Government is in issue, the burden of proof is on the contractor 

26 to establish that those costs are reasonable. 

27 § 4310. Proceeding costs not allowable 

28 (a) DEFINITIONS.—In this section—

29 (1) COSTS.—The term ‘‘costs’’, with respect to a proceeding, means 

30 all costs incurred by a contractor, whether before or after the com31 mencement of the proceeding, including—

32 (A) administrative and clerical expenses; 

33 (B) the cost of legal services, including legal services performed 

34 by an employee of the contractor; 

35 (C) the cost of the services of accountants and consultants re36 tained by the contractor; and 

37 (D) the pay of directors, officers, and employees of the con38 tractor for time devoted by those directors, officers, and employees 

39 to the proceeding. 

40 (2) PENALTY.—The term ‘‘penalty’’ does not include restitution, re41 imbursement, or compensatory damages. 
123

•HR 4320 IH 

1 (3) PROCEEDING.—The term ‘‘proceeding’’ includes an investigation. 

2 (b) IN GENERAL.—Except as otherwise provided in this section, costs in3 curred by a contractor in connection with a criminal, civil, or administrative 

4 proceeding commenced by the Federal Government or a State are not allow5 able as reimbursable costs under a covered contract if the proceeding—

6 (1) relates to a violation of, or failure to comply with, a Federal or 

7 State statute or regulation; and 

8 (2) results in a disposition described in subsection (c). 

9 (c) COVERED DISPOSITIONS.—A disposition referred to in subsection 

10 (b)(2) is any of the following: 

11 (1) In a criminal proceeding, a conviction (including a conviction 

12 pursuant to a plea of nolo contendere) by reason of the violation or 

13 failure referred to in subsection (b). 

14 (2) In a civil or administrative proceeding involving an allegation of 

15 fraud or similar misconduct, a determination of contractor liability on 

16 the basis of the violation or failure referred to in subsection (b). 

17 (3) In any civil or administrative proceeding, the imposition of a 

18 monetary penalty by reason of the violation or failure referred to in 

19 subsection (b). 

20 (4) A final decision to do any of the following, by reason of the viola21 tion or failure referred to in subsection (b): 

22 (A) Debar or suspend the contractor. 

23 (B) Rescind or void the contract. 

24 (C) Terminate the contract for default. 

25 (5) A disposition of the proceeding by consent or compromise if the 

26 disposition could have resulted in a disposition described in clause (1), 

27 (2), (3), or (4). 

28 (d) COSTS ALLOWED BY SETTLEMENT AGREEMENT IN PROCEEDING

29 COMMENCED BY GOVERNMENT.—In the case of a proceeding referred to in 

30 subsection (b) that is commenced by the Government and is resolved by con31 sent or compromise pursuant to an agreement entered into by a contractor 

32 and the Government, the costs incurred by the contractor in connection with

33 the proceeding that are otherwise not allowable as reimbursable costs under 

34 subsection (b) may be allowed to the extent specifically provided in that 

35 agreement. 

36 (e) COSTS SPECIFICALLY AUTHORIZED BY EXECUTIVE AGENCY IN PRO37 CEEDING COMMENCED BY STATE.—In the case of a proceeding referred to 

38 in subsection (b) that is commenced by a State, the executive agency that 

39 awarded the covered contract involved in the proceeding may allow the costs 

40 incurred by the contractor in connection with the proceeding as reimburs-
124

•HR 4320 IH 

1 able costs if the executive agency determines, in accordance with the Fed2 eral Acquisition Regulation, that the costs were incurred as a result of—

3 (1) a specific term or condition of the contract; or 

4 (2) specific written instructions of the executive agency. 

5 (f) OTHER ALLOWABLE COSTS.—

6 (1) IN GENERAL.—Except as provided in paragraph (3), costs in7 curred by a contractor in connection with a criminal, civil, or adminis8 trative proceeding commenced by the Government or a State in connec9 tion with a covered contract may be allowed as reimbursable costs 

10 under the contract if the costs are not disallowable under subsection 

11 (b), but only to the extent provided in paragraph (2). 

12 (2) AMOUNT OF ALLOWABLE COSTS.—

13 (A) MAXIMUM AMOUNT ALLOWED.—The amount of the costs al14 lowable under paragraph (1) in any case may not exceed the 

15 amount equal to 80 percent of the amount of the costs incurred, 

16 to the extent that the costs are determined to be otherwise allow17 able and allocable under the Federal Acquisition Regulation. 

18 (B) CONTENT OF REGULATIONS.—Regulations issued for the 

19 purpose of subparagraph (A) shall provide for appropriate consid20 eration of the complexity of procurement litigation, generally ac21 cepted principles governing the award of legal fees in civil actions 

22 involving the Government as a party, and other factors as may be 

23 appropriate. 

24 (3) WHEN OTHERWISE ALLOWABLE COSTS ARE NOT ALLOWABLE.—

25 In the case of a proceeding referred to in paragraph (1), contractor 

26 costs otherwise allowable as reimbursable costs under this subsection 

27 are not allowable if—

28 (A) the proceeding involves the same contractor misconduct al29 leged as the basis of another criminal, civil, or administrative pro30 ceeding; and 

31 (B) the costs of the other proceeding are not allowable under 

32 subsection (b).

33 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.

34 § 4501. Authority of executive agency 

35 An executive agency may—

36 (1) make advance, partial, progress or other payments under con37 tracts for property or services made by the agency; and 
125

•HR 4320 IH 

1 (2) insert in solicitations for procurement of property or services a 

2 provision limiting to small business concerns advance or progress pay3 ments. 

4 § 4502. Payment 

5 (a) BASIS FOR PAYMENT.—When practicable, payments under section 

6 4501 of this title shall be made on any of the following bases: 

7 (1) Performance measured by objective, quantifiable methods such as 

8 delivery of acceptable items, work measurement, or statistical process 

9 controls. 

10 (2) Accomplishment of events defined in the program management 

11 plan. 

12 (3) Other quantifiable measures of results. 

13 (b) PAYMENT AMOUNT.—Payments made under section 4501 of this title 

14 may not exceed the unpaid contract price. 

15 § 4503. Security for advance payments 

16 Advance payments under section 4501 of this title may be made only on 

17 adequate security and a determination by the agency head that to do so 

18 would be in the public interest. The security may be in the form of a lien 

19 in favor of the Federal Government on the property contracted for, on the 

20 balance in an account in which the payments are deposited, and on such 

21 of the property acquired for performance of the contract as the parties may 

22 agree. This lien shall be paramount to all other liens and is effective imme23 diately upon the first advancement of amounts without filing, notice, or any 

24 other action by the Government. 

25 § 4504. Conditions for progress payments 

26 (a) PAYMENT COMMENSURATE WITH WORK.—The executive agency shall 

27 ensure that a payment for work in progress (including materials, labor, and 

28 other items) under a contract of an executive agency that provides for those 

29 payments is commensurate with the work accomplished that meets stand30 ards established under the contract. The contractor shall provide informa31 tion and evidence the executive agency determines is necessary to permit the 

32 executive agency to carry out this subsection. 

33 (b) LIMITATION.—The executive agency shall ensure that progress pay34 ments referred to in subsection (a) are not made for more than 80 percent 

35 of the work accomplished under the contract as long as the executive agency 

36 has not made the contractual terms, specifications, and price definite. 

37 (c) APPLICATION.—This section applies to a contract in an amount great38 er than $25,000. 

39 § 4505. Payments for commercial items 

40 (a) TERMS AND CONDITIONS FOR PAYMENTS.—Payments under section 

41 4501 of this title for commercial items may be made under terms and condi-
126

•HR 4320 IH 

1 tions that the head of the executive agency determines are appropriate or 

2 customary in the commercial marketplace and are in the best interests of 

3 the Federal Government. 

4 (b) SECURITY FOR PAYMENTS.—The head of the executive agency shall 

5 obtain adequate security for the payments. If the security is in the form 

6 of a lien in favor of the Government, the lien is paramount to all other liens 

7 and is effective immediately on the first payment, without filing, notice, or 

8 other action by the Government. 

9 (c) LIMITATION ON ADVANCE PAYMENTS.—Advance payments made 

10 under section 4501 of this title for commercial items may include payments, 

11 in a total amount not more than 15 percent of the contract price, in ad12 vance of any performance of work under the contract. 

13 (d) NONAPPLICATION OF CERTAIN CONDITIONS.—The conditions of sec14 tions 4503 and 4504 of this title need not be applied if they would be incon15 sistent, as determined by the head of the executive agency, with commercial 

16 terms and conditions pursuant to this section. 

17 § 4506. Action in case of fraud 

18 (a) DEFINITION.—In this section, the term ‘‘remedy coordination offi19 cial’’, with respect to an executive agency, means the individual or entity 

20 in that executive agency who coordinates within that executive agency the 

21 administration of criminal, civil, administrative, and contractual remedies 

22 resulting from investigations of fraud or corruption related to procurement 

23 activities. 

24 (b) RECOMMENDATION TO REDUCE OR SUSPEND PAYMENTS.—In any 

25 case in which the remedy coordination official of an executive agency finds 

26 that there is substantial evidence that the request of a contractor for ad27 vance, partial, or progress payment under a contract awarded by that execu28 tive agency is based on fraud, the remedy coordination official shall rec29 ommend that the executive agency reduce or suspend further payments to 

30 that contractor.

31 (c) REDUCTION OR SUSPENSION OF PAYMENTS.—The head of an execu32 tive agency receiving a recommendation under subsection (b) in the case of 

33 a contractor’s request for payment under a contract shall determine whether 

34 there is substantial evidence that the request is based on fraud. On making 

35 that determination, the head of the executive agency may reduce or suspend 

36 further payments to the contractor under the contract. 

37 (d) EXTENT OF REDUCTION OR SUSPENSION.—The extent of any reduc38 tion or suspension of payments by an executive agency under subsection (c) 

39 on the basis of fraud shall be reasonably commensurate with the anticipated 

40 loss to the Federal Government resulting from the fraud. 
127

•HR 4320 IH 

1 (e) WRITTEN JUSTIFICATION.—A written justification for each decision 

2 of the head of an executive agency whether to reduce or suspend payments 

3 under subsection (c), and for each recommendation received by the executive 

4 agency in connection with the decision, shall be prepared and be retained 

5 in the files of the executive agency. 

6 (f) NOTICE.—The head of each executive agency shall prescribe proce7 dures to ensure that, before the head of the executive agency decides to re8 duce or suspend payments in the case of a contractor under subsection (c), 

9 the contractor is afforded notice of the proposed reduction or suspension 

10 and an opportunity to submit matters to the executive agency in response 

11 to the proposed reduction or suspension. 

12 (g) REVIEW.—Not later than 180 days after the date on which the head 

13 of an executive agency reduces or suspends payments to a contractor under 

14 subsection (c), the remedy coordination official of the executive agency 

15 shall—

16 (1) review the determination of fraud on which the reduction or sus17 pension is based; and 

18 (2) transmit a recommendation to the head of the executive agency 

19 whether the suspension or reduction should continue. 

20 (h) REPORT.—The head of each executive agency who receives rec21 ommendations made by the remedy coordination official of the executive 

22 agency to reduce or suspend payments under subsection (c) during a fiscal 

23 year shall prepare for that year a report that contains the recommendations, 

24 the actions taken on the recommendations and the reasons for those actions, 

25 and an assessment of the effects of those actions on the Federal Govern26 ment. The report shall be available to any Member of Congress on request. 

27 (i) RESTRICTION ON DELEGATION.—The head of an executive agency 

28 may not delegate responsibilities under this section to an individual in a po29 sition below level IV of the Executive Schedule.

30 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.

31 § 4701. Determinations and decisions 

32 (a) INDIVIDUAL OR CLASS DETERMINATIONS AND DECISIONS AUTHOR33 IZED.—
128

•HR 4320 IH 

1 (1) IN GENERAL.—Determinations and decisions required to be made 

2 under this part by the head of an executive agency or provided in this 

3 part or subtitle I of title 40 to be made by the Administrator of Gen4 eral Services or other agency head may be made for an individual pur5 chase or contract or, except for determinations or decisions made under 

6 section 3106, chapters 33 and 37, and section 4702 of this title or to 

7 the extent expressly prohibited by another law, for a class of purchases 

8 or contracts. 

9 (2) DELEGATION.— Except as provided in section 3303(a)(7) of this 

10 title, and except as provided in section 121(d)(1) and (2) of title 40 

11 with respect to the Administrator, the agency head, in the discretion, 

12 and subject to the direction, of the agency head, may delegate powers 

13 provided by this part or subtitle I of title 40, including the making of 

14 determinations and decisions described in paragraph (1), to other offi15 cers or officials of the agency. 

16 (3) FINALITY.—The determinations and decisions are final. 

17 (b) WRITTEN FINDINGS.—

18 (1) BASIS FOR CERTAIN DETERMINATIONS.—Each determination or 

19 decision under section 3901, 3905, 4503, or 4706(d)(2)(B) of this title 

20 shall be based on a written finding by the individual making the deter21 mination or decision. A finding under section 4503 or 4706(d)(2)(B) 

22 shall set out facts and circumstances that support the determination 

23 or decision. 

24 (2) FINALITY.—Each finding referred to in paragraph (1) is final. 

25 (3) MAINTAINING COPIES OF FINDINGS.—The head of an executive 

26 agency shall maintain for a period of not less than 6 years a copy of 

27 each finding referred to in paragraph (1) that is made by an individual 

28 in that executive agency. The period begins on the date of the deter29 mination or decision to which the finding relates. 

30 § 4702. Prohibition on release of contractor proposals 

31 (a) DEFINITION.—In this section, the term ‘‘proposal’’ means a proposal, 

32 including a technical, management, or cost proposal, submitted by a con33 tractor in response to the requirements of a solicitation for a competitive 

34 proposal. 

35 (b) PROHIBITION.—A proposal in the possession or control of an execu36 tive agency may not be made available to any person under section 552 of 

37 title 5. 

38 (c) NONAPPLICATION.—Subsection (b) does not apply to a proposal that 

39 is set forth or incorporated by reference in a contract entered into between 

40 the agency and the contractor that submitted the proposal. 
129

•HR 4320 IH 

1 § 4703. Validation of proprietary data restrictions 

2 (a) CONTRACT THAT PROVIDES FOR DELIVERY OF TECHNICAL DATA.—

3 A contract for property or services an executive agency enters into that pro4 vides for the delivery of technical data shall provide that—

5 (1) a contractor or subcontractor at any tier shall be prepared to 

6 furnish to the contracting officer a written justification for any restric7 tion the contractor or subcontractor asserts on the right of the Federal 

8 Government to use the data; and 

9 (2) the contracting officer may review the validity of a restriction the 

10 contractor or subcontractor asserts under the contract on the right of 

11 the Government to use technical data furnished to the Government 

12 under the contract if the contracting officer determines that reasonable 

13 grounds exist to question the current validity of the asserted restriction 

14 and that the continued adherence to the asserted restriction by the 

15 Government would make it impracticable to procure the item competi16 tively at a later time. 

17 (b) CHALLENGE OF RESTRICTION.—If after a review the contracting offi18 cer determines that a challenge to the asserted restriction is warranted, the 

19 contracting officer shall provide written notice to the contractor or subcon20 tractor asserting the restriction. The notice shall state—

21 (1) the grounds for challenging the asserted restriction; and 

22 (2) the requirement for a response within 60 days justifying the cur23 rent validity of the asserted restriction. 

24 (c) ADDITIONAL TIME FOR RESPONSES.—When a contractor or subcon25 tractor asserting a restriction subject to this section submits to the con26 tracting officer a written request showing the need for additional time to 

27 comply with the requirement to justify the current validity of the asserted 

28 restriction, the contracting officer shall provide appropriate additional time 

29 to adequately permit the justification to be submitted.

30 (d) MULTIPLE CHALLENGES.—When a party asserting a restriction re31 ceives notices of challenges to restrictions on technical data from more than 

32 one contracting officer, and notifies each contracting officer of the existence 

33 of more than one challenge, the contracting officer initiating the earliest 

34 challenge, after consultation with the party asserting the restriction and the 

35 other contracting officers, shall formulate a schedule of responses to each 

36 of the challenges that will afford the party asserting the restriction with an 

37 equitable opportunity to respond to each challenge. 

38 (e) DECISION ON VALIDITY OF ASSERTED RESTRICTION.—

39 (1) NO RESPONSE SUBMITTED.—The contracting officer shall issue 

40 a decision pertaining to the validity of the asserted restriction if the 
130

•HR 4320 IH 

1 contractor or subcontractor does not submit a response under sub2 section (b). 

3 (2) RESPONSE SUBMITTED.—Within 60 days of receipt of a justifica4 tion submitted in response to the notice provided pursuant to sub5 section (b), a contracting officer shall issue a decision or notify the 

6 party asserting the restriction of the time within which a decision will 

7 be issued. 

8 (f) CLAIM DEEMED CLAIM WITHIN CHAPTER 69.—A claim pertaining to 

9 the validity of the asserted restriction that is submitted in writing to a con10 tracting officer by a contractor or subcontractor at any tier is deemed to 

11 be a claim within the meaning of chapter 69 of this title. 

12 (g) FINAL DISPOSITION OF CHALLENGE.— 

13 (1) CHALLENGE IS SUSTAINED.—If the contracting officer’s chal14 lenge to the restriction on the right of the Government to use technical 

15 data is sustained on final disposition—

16 (A) the restriction is cancelled; and 

17 (B) if the asserted restriction is found not to be substantially 

18 justified, the contractor or subcontractor, as appropriate, is liable 

19 to the Government for payment of the cost to the Government of 

20 reviewing the asserted restriction and the fees and other expenses 

21 (as defined in section 2412(d)(2)(A) of title 28) the Government 

22 incurred in challenging the asserted restriction, unless special cir23 cumstances would make the payment unjust. 

24 (2) CHALLENGE NOT SUSTAINED.—If the contracting officer’s chal25 lenge to the restriction on the right of the Government to use technical 

26 data is not sustained on final disposition, the Government—

27 (A) continues to be bound by the restriction; and 

28 (B) is liable for payment to the party asserting the restriction 

29 for fees and other expenses (as defined in section 2412(d)(2)(A) 

30 of title 28) the party asserting the restriction incurred in defend31 ing the asserted restriction if the challenge by the Government is 

32 found not to be made in good faith. 

33 § 4704. Prohibition of contractors limiting subcontractor 

34 sales directly to Federal Government 

35 (a) CONTRACT RESTRICTIONS.—Each contract for the purchase of prop36 erty or services made by an executive agency shall provide that the con37 tractor will not—

38 (1) enter into an agreement with a subcontractor under the contract 

39 that has the effect of unreasonably restricting sales by the subcon40 tractor directly to the Federal Government of any item or process (in-
131

•HR 4320 IH 

1 cluding computer software) made or furnished by the subcontractor 

2 under the contract (or any follow-on production contract); or 

3 (2) otherwise act to restrict unreasonably the ability of a subcon4 tractor to make sales described in clause (1) to the Government. 

5 (b) RIGHTS UNDER LAW PRESERVED.—This section does not prohibit a 

6 contractor from asserting rights it otherwise has under law. 

7 (c) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not 

8 apply to a contract for an amount that is not greater than the simplified 

9 acquisition threshold. 

10 (d) INAPPLICABILITY WHEN GOVERNMENT TREATED SIMILARLY TO

11 OTHER PURCHASERS.—An agreement between the contractor in a contract 

12 for the acquisition of commercial items and a subcontractor under the con13 tract that restricts sales by the subcontractor directly to persons other than 

14 the contractor may not be considered to unreasonably restrict sales by that 

15 subcontractor to the Government in violation of the provision included in 

16 the contract pursuant to subsection (a) if the agreement does not result in 

17 the Government being treated differently with regard to the restriction than 

18 any other prospective purchaser of the commercial items from that subcon19 tractor. 

20 § 4705. Protection of contractor employees from reprisal for 

21 disclosure of certain information 

22 (a) DEFINITIONS.—In this section—

23 (1) CONTRACT.—The term ‘‘contract’’ means a contract awarded by 

24 the head of an executive agency. 

25 (2) CONTRACTOR.—The term ‘‘contractor’’ means a person awarded 

26 a contract with an executive agency. 

27 (3) INSPECTOR GENERAL.—The term ‘‘Inspector General’’ means an 

28 Inspector General appointed under the Inspector General Act of 1978 

29 (5 App. U.S.C.). 

30 (b) PROHIBITION OF REPRISALS.—An employee of a contractor may not 

31 be discharged, demoted, or otherwise discriminated against as a reprisal for 

32 disclosing to a Member of Congress or an authorized official of an executive 

33 agency or the Department of Justice information relating to a substantial 

34 violation of law related to a contract (including the competition for, or nego35 tiation of, a contract). 

36 (c) INVESTIGATION OF COMPLAINTS.—An individual who believes that the 

37 individual has been subjected to a reprisal prohibited by subsection (a) may 

38 submit a complaint to the Inspector General of the executive agency. Unless 

39 the Inspector General determines that the complaint is frivolous, the Inspec40 tor General shall investigate the complaint and, on completion of the inves41 tigation, submit a report of the findings of the investigation to the indi-
132

•HR 4320 IH 

1 vidual, the contractor concerned, and the head of the agency. If the execu2 tive agency does not have an Inspector General, the duties of the Inspector 

3 General under this section shall be performed by an official the head of the 

4 executive agency designates. 

5 (d) REMEDY AND ENFORCEMENT AUTHORITY.— 

6 (1) ACTIONS CONTRACTOR MAY BE ORDERED TO TAKE.—If the head 

7 of an executive agency determines that a contractor has subjected an 

8 individual to a reprisal prohibited by subsection (a), the head of the 

9 executive agency may take one or more of the following actions: 

10 (A) ABATEMENT.—Order the contractor to take affirmative ac11 tion to abate the reprisal. 

12 (B) REINSTATEMENT.—Order the contractor to reinstate the in13 dividual to the position that the individual held before the reprisal, 

14 together with the compensation (including back pay), employment 

15 benefits, and other terms and conditions of employment that 

16 would apply to the individual in that position if the reprisal had 

17 not been taken. 

18 (C) PAYMENT.—Order the contractor to pay the complainant an 

19 amount equal to the aggregate amount of all costs and expenses 

20 (including attorneys’ fees and expert witnesses’ fees) that the com21 plainant reasonably incurred for, or in connection with, bringing 

22 the complaint regarding the reprisal, as the head of the executive 

23 agency determines. 

24 (2) ENFORCEMENT ORDER.—When a contractor fails to comply with 

25 an order issued under paragraph (1), the head of the executive agency 

26 shall file an action for enforcement of the order in the United States 

27 district court for a district in which the reprisal was found to have oc28 curred. In an action brought under this paragraph, the court may 

29 grant appropriate relief, including injunctive relief and compensatory 

30 and exemplary damages.

31 (3) REVIEW OF ENFORCEMENT ORDER.—A person adversely affected 

32 or aggrieved by an order issued under paragraph (1) may obtain review 

33 of the order’s conformance with this subsection, and regulations issued 

34 to carry out this section, in the United States court of appeals for a 

35 circuit in which the reprisal is alleged in the order to have occurred. 

36 A petition seeking review must be filed no more than 60 days after the 

37 head of the agency issues the order. Review shall conform to chapter 

38 7 of title 5. 

39 (e) SCOPE OF SECTION.—This section does not—
133

•HR 4320 IH 

1 (1) authorize the discharge of, demotion of, or discrimination against 

2 an employee for a disclosure other than a disclosure protected by sub3 section (a); or 

4 (2) modify or derogate from a right or remedy otherwise available 

5 to the employee. 

6 § 4706. Examination of facilities and records of contractor 

7 (a) DEFINITION.—In this section, the term ‘‘records’’ includes books, doc8 uments, accounting procedures and practices, and other data, regardless of 

9 type and regardless of whether the items are in written form, in the form 

10 of computer data, or in any other form. 

11 (b) AGENCY AUTHORITY.—

12 (1) INSPECTION OF PLANT AND AUDIT OF RECORDS.—An authorized 

13 representative of the head of an executive agency may inspect the plant 

14 and audit the records of—

15 (A) a contractor performing a cost-reimbursement, incentive, 

16 time-and-materials, labor-hour, or price-redeterminable contract, 

17 or any combination of those contracts, the executive agency makes 

18 under this part; and 

19 (B) a subcontractor performing a cost-reimbursement, incentive, 

20 time-and-materials, labor-hour, or price-redeterminable sub21 contract, or any combination of those subcontracts, under a con22 tract referred to in subparagraph (A). 

23 (2) EXAMINATION OF RECORDS.—An authorized representative of 

24 the head of an executive agency, to evaluate the accuracy, complete25 ness, and currency of certified cost or pricing data required to be sub26 mitted pursuant to chapter 35 of this title with respect to a contract 

27 or subcontract, may examine all records of the contractor or subcon28 tractor related to—

29 (A) the proposal for the contract or subcontract; 

30 (B) the discussions conducted on the proposal; 

31 (C) pricing of the contract or subcontract; or 

32 (D) performance of the contract or subcontract. 

33 (c) SUBPENA POWER.—

34 (1) AUTHORITY TO REQUIRE THE PRODUCTION OF RECORDS.—The 

35 Inspector General of an executive agency appointed under section 3 or 

36 8G of the Inspector General Act of 1978 (5 App. U.S.C.) or, on re37 quest of the head of an executive agency, the Director of the Defense 

38 Contract Audit Agency (or any successor agency) of the Department 

39 of Defense or the Inspector General of the General Services Adminis40 tration may require by subpena the production of records of a con-
134

•HR 4320 IH 

1 tractor, access to which is provided for that executive agency by sub2 section (b). 

3 (2) ENFORCEMENT OF SUBPENA.—A subpena under paragraph (1), 

4 in the case of contumacy or refusal to obey, is enforceable by order of 

5 an appropriate United States district court. 

6 (3) AUTHORITY NOT DELEGABLE.—The authority provided by para7 graph (1) may not be delegated. 

8 (4) REPORT.—In the year following a year in which authority pro9 vided in paragraph (1) is exercised for an executive agency, the head 

10 of the executive agency shall submit to the Committee on Governmental 

11 Affairs of the Senate and the Committee on Government Operations of 

12 the House of Representatives a report on the exercise of the authority 

13 during the preceding year and the reasons why the authority was exer14 cised in any instance. 

15 (d) AUTHORITY OF COMPTROLLER GENERAL.—

16 (1) IN GENERAL.—Except as provided in paragraph (2), each con17 tract awarded after using procedures other than sealed bid procedures 

18 shall provide that the Comptroller General and representatives of the 

19 Comptroller General may examine records of the contractor, or any of 

20 its subcontractors, that directly pertain to, and involve transactions re21 lating to, the contract or subcontract. 

22 (2) EXCEPTION FOR FOREIGN CONTRACTOR OR SUBCONTRACTOR.—

23 Paragraph (1) does not apply to a contract or subcontract with a for24 eign contractor or foreign subcontractor if the executive agency con25 cerned determines, with the concurrence of the Comptroller General or 

26 the designee of the Comptroller General, that applying paragraph (1) 

27 to the contract or subcontract would not be in the public interest. The 

28 concurrence of the Comptroller General or the designee is not required 

29 when—

30 (A) the contractor or subcontractor is—

31 (i) the government of a foreign country or an agency of 

32 that government; or 

33 (ii) precluded by the laws of the country involved from 

34 making its records available for examination; and 

35 (B) the executive agency, after taking into account the price 

36 and availability of the property and services from United States 

37 sources, determines that the public interest would be best served 

38 by not applying paragraph (1). 

39 (3) ADDITIONAL RECORDS NOT REQUIRED.—Paragraph (1) does not 

40 require a contractor or subcontractor to create or maintain a record 
135

•HR 4320 IH 

1 that the contractor or subcontractor does not maintain in the ordinary 

2 course of business or pursuant to another law. 

3 (e) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.—An execu4 tive agency may not perform an audit of indirect costs under a contract, 

5 subcontract, or modification before or after entering into the contract, sub6 contract, or modification when the contracting officer determines that the 

7 objectives of the audit can reasonably be met by accepting the results of 

8 an audit that was conducted by another department or agency of the Fed9 eral Government within one year preceding the date of the contracting offi10 cer’s determination. 

11 (f) EXPIRATION OF AUTHORITY.—The authority of an executive agency 

12 under subsection (b) and the authority of the Comptroller General under 

13 subsection (d) shall expire three years after final payment under the con14 tract or subcontract. 

15 (g) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not 

16 apply to the following contracts: 

17 (1) CONTRACTS FOR UTILITY SERVICES.—Contracts for utility serv18 ices at rates not exceeding those established to apply uniformly to the 

19 public, plus any applicable reasonable connection charge. 

20 (2) CONTRACT OR SUBCONTRACT NOT GREATER THAN SIMPLIFIED

21 ACQUISITION THRESHOLD.—A contract or subcontract that is not 

22 greater than the simplified acquisition threshold. 

23 (h) ELECTRONIC FORM ALLOWED.—This section does not preclude a con24 tractor from duplicating or storing original records in electronic form. 

25 (i) ORIGINAL RECORDS NOT REQUIRED.—An executive agency shall not 

26 require a contractor or subcontractor to provide original records in an audit 

27 carried out pursuant to this section if the contractor or subcontractor pro28 vides photographic or electronic images of the original records and meets 

29 the following requirements: 

30 (1) PRESERVATION PROCEDURES ESTABLISHED.—The contractor or 

31 subcontractor has established procedures to ensure that the imaging 

32 process preserves the integrity, reliability, and security of the original 

33 records.

34 (2) INDEXING SYSTEM MAINTAINED.—The contractor or subcon35 tractor maintains an effective indexing system to permit timely and 

36 convenient access to the imaged records. 

37 (3) ORIGINAL RECORDS RETAINED.—The contractor or subcon38 tractor retains the original records for a minimum of one year after 

39 imaging to permit periodic validation of the imaging systems. 
136

•HR 4320 IH 

1 § 4707. Remission of liquidated damages 

2 When a contract made on behalf of the Federal Government by the head 

3 of a Federal agency, or by an authorized officer of the agency, includes a 

4 provision for liquidated damages for delay, the Secretary of the Treasury 

5 on recommendation of the head of the agency may remit any part of the 

6 damages as the Secretary believes is just and equitable. 

7 § 4708. Payment of reimbursable indirect costs in cost-type 

8 research and development contracts with edu9 cational institutions 

10 A cost-type research and development contract (including a grant) with 

11 a university, college, or other educational institution may provide for pay12 ment of reimbursable indirect costs on the basis of predetermined fixed-per13 centage rates applied to the total of the reimbursable direct costs incurred 

14 or to an element of the total of the reimbursable direct costs. 

15 § 4709. Implementation of electronic commerce capability 

16 (a) ROLE OF HEAD OF EXECUTIVE AGENCY.—The head of each execu17 tive agency shall implement the electronic commerce capability required by 

18 section 2301 of this title. In implementing the capability, the head of an 

19 executive agency shall consult with the Administrator for Federal Procure20 ment Policy. 

21 (b) PROGRAM MANAGER.—The head of each executive agency shall des22 ignate a program manager to implement the electronic commerce capability 

23 for the agency. The program manager reports directly to an official at a 

24 level not lower than the senior procurement executive designated for the 

25 agency under section 1702(c) of this title.

26 Subtitle II—Other Advertising and Contract 

27 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

28 CHAPTER 61—ADVERTISING

Sec. 

6101. Advertising requirement for Federal Government purchases and sales. 

6102. Exceptions from advertising requirement. 

6103. Opening of bids.

29 § 6101. Advertising requirement for Federal Government 

30 purchases and sales 

31 (a) DEFINITIONS.—In this section—

32 (1) APPROPRIATION.—The term ‘‘appropriation’’ includes amounts 

33 made available by legislation under section 9104 of title 31. 
137

•HR 4320 IH 

1 (2) FEDERAL GOVERNMENT AND GOVERNMENT.—The terms ‘‘Fed2 eral Government’’ and ‘‘Government’’ include the government of the 

3 District of Columbia. 

4 (b) PURCHASES.—

5 (1) IN GENERAL.—Unless otherwise provided in the appropriation 

6 concerned or other law, purchases and contracts for supplies or services 

7 for the Federal Government may be made or entered into only after 

8 advertising a sufficient time previously for proposals. 

9 (2) LIMITATIONS ON APPLICABILITY.—Paragraph (1) does not apply 

10 when—

11 (A) the amount involved in any one case does not exceed 

12 $25,000; 

13 (B) public exigencies require the immediate delivery of articles 

14 or performance of services; 

15 (C) only one source of supply is available and the Government 

16 purchasing or contracting officer so certifies; or 

17 (D) services are required to be performed by a contractor in 

18 person and are—

19 (i) of a technical and professional nature; or 

20 (ii) under Government supervision and paid for on a time 

21 basis. 

22 (c) SALES.—Except when otherwise authorized by law or when the rea23 sonable value involved in any one case does not exceed $500, sales and con24 tracts of sale by the Government are governed by the requirements of this 

25 section for advertising. 

26 (d) APPLICATION TO WHOLLY OWNED GOVERNMENT CORPORATIONS.—

27 For wholly owned Government corporations, this section applies only to ad28 ministrative transactions. 

29 § 6102. Exceptions from advertising requirement 

30 (a) AMERICAN BATTLE MONUMENTS COMMISSION.—Section 6101 of this 

31 title does not apply to the American Battle Monuments Commission with 

32 respect to leases in foreign countries for office or garage space. 

33 (b) BUREAU OF INTERPARLIAMENTARY UNION FOR PROMOTION OF

34 INTERNATIONAL ARBITRATION.—Section 6101 of this title does not apply 

35 to the Bureau of Interparliamentary Union for Promotion of International 

36 Arbitration with respect to necessary stenographic reporting services by con37 tract. 

38 (c) DEPARTMENT OF STATE.—Section 6101 of this title does not apply 

39 to the Department of State when the purchase or service relates to the 

40 packing of personal and household effects of Diplomatic, Consular, and For41 eign Service officers and clerks for foreign shipment. 
138

•HR 4320 IH 

1 (d) INTERNATIONAL COMMITTEE OF AERIAL LEGAL EXPERTS.—Section 

2 6101 of this title does not apply to the International Committee of Aerial 

3 Legal Experts with respect to necessary stenographic and other services by 

4 contract. 

5 (e) ARCHITECT OF THE CAPITOL.—The purchase of supplies and equip6 ment and the procurement of services for all branches under the Architect 

7 of the Capitol may be made in the open market according to common busi8 ness practice, without compliance with section 6101 of this title, when the 

9 aggregate amount of the purchase or the service does not exceed $25,000 

10 in any instance. 

11 (f) FOREST PRODUCTS FROM INDIAN RESERVATIONS.—Lumber and 

12 other forest products produced by Indian enterprises from forests on Indian 

13 reservations may be sold under regulations the Secretary of the Interior pre14 scribes, without compliance with section 6101 of this title. 

15 (g) HOUSE OF REPRESENTATIVES.—Section 6101 of this title does not 

16 apply to purchases and contracts for supplies or services for any office of 

17 the House of Representatives. 

18 (h) CONGRESSIONAL BUDGET OFFICE.—The Director of the Congres19 sional Budget Office may enter into agreements or contracts without regard 

20 to section 6101 of this title. 

21 § 6103. Opening of bids 

22 Whenever proposals for supplies have been solicited, the parties respond23 ing to the solicitation shall be notified of the time and place of the opening 

24 of the bids, and be permitted to be present either in person or by attorney. 

25 A record of each bid shall be made at the time and place of the opening 

26 of the bids. 

27 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 Government-owned establishments and availability of appropriations. 

6308. Contracts for transportation of Federal Government securities. 

6309. Honorable discharge certificate in lieu of birth certificate.

28 § 6301. Authorization requirement 

29 (a) IN GENERAL.—A contract or purchase on behalf of the Federal Gov30 ernment shall not be made unless the contract or purchase is authorized by 

31 law or is under an appropriation adequate to its fulfillment. 

32 (b) EXCEPTION.—

33 (1) DEFINITION.—In this subsection, the term ‘‘defined Secretary’’ 

34 means—

35 (A) the Secretary of Defense; or 
139

•HR 4320 IH 

1 (B) the Secretary of Transportation with respect to the Coast 

2 Guard when the Coast Guard is not operating as a service in the 

3 Navy. 

4 (2) IN GENERAL.—Subsection (a) does not apply to a contract or 

5 purchase made by a defined Secretary for clothing, subsistence, forage, 

6 fuel, quarters, transportation, or medical and hospital supplies. 

7 (3) CURRENT YEAR LIMITATION.—A contract or purchase made by 

8 a defined Secretary under this subsection may not exceed the neces9 sities of the current year. 

10 (4) REPORTS.—The defined Secretary shall immediately advise Con11 gress when authority is exercised under this subsection. The defined 

12 Secretary shall report quarterly on the estimated obligations incurred 

13 pursuant to the authority granted in this subsection. 

14 (c) SPECIAL RULE FOR PURCHASE OF LAND.—Land may not be pur15 chased by the Government unless the purchase is authorized by law. 

16 § 6302. Contracts for fuel made by Secretary of the Army 

17 The Secretary of the Army, when the Secretary believes it is in the inter18 est of the Federal Government, may enter into contracts and incur obliga19 tions for fuel in sufficient quantities to meet the requirements for one year 

20 without regard to the current fiscal year. Funds appropriated for the cur21 rent fiscal year or the following fiscal year may be used to pay for supplies 

22 delivered under a contract made pursuant to this section. 

23 § 6303. Certain contracts limited to appropriated amounts 

24 A contract to erect, repair, or furnish a public building, or to make any 

25 public improvement, shall not be made on terms requiring the Federal Gov26 ernment to pay more than the amount specifically appropriated for the ac27 tivity covered by the contract. 

28 § 6304. Certain contracts limited to one-year term 

29 Except as otherwise provided, an executive department shall not make a 

30 contract for stationery or other supplies for a term longer than one year 

31 from the time the contract is made. 

32 § 6305. Prohibition on transfer of contract and certain al33 lowable assignments 

34 (a) GENERAL PROHIBITION ON TRANSFER OF CONTRACTS.—The party 

35 to whom the Federal Government gives a contract or order may not transfer 

36 the contract or order, or any interest in the contract or order, to another 

37 party. A purported transfer in violation of this subsection annuls the con38 tract so far as the Government is concerned, except that all rights of action 

39 for breach of contract are reserved to the Government. 

40 (b) ASSIGNMENT.—
140

•HR 4320 IH 

1 (1) IN GENERAL.—Notwithstanding subsection (a) and in accordance 

2 with the requirements of this subsection, amounts due from the Gov3 ernment under a contract may be assigned to a bank, trust company, 

4 Federal lending agency, or other financing institution. 

5 (2) MINIMUM AMOUNT.—This subsection applies only to a contract 

6 under which the aggregate amounts due from the Government total at 

7 least $1,000. 

8 (3) ACCORD WITH CONTRACT TERMS.—Assignment may not be made 

9 under this subsection if the contract forbids the assignment. 

10 (4) FULL BALANCE DUE.—Unless otherwise expressly permitted by 

11 the contract, an assignment under this subsection must cover the bal12 ance of all amounts due from the Government under the contract. 

13 (5) SINGLE ASSIGNMENT.—Unless otherwise expressly permitted by 

14 the contract, an assignment under this subsection may not be made to 

15 more than one party or be subject to further assignment, except that 

16 assignment may be made to one party as agent or trustee for two or 

17 more parties. 

18 (6) WRITTEN NOTICE.—The assignee of an assignment under this 

19 subsection shall file written notice and a true copy of the instrument 

20 of assignment with—

21 (A) the contracting officer or head of the officer’s department 

22 or agency; 

23 (B) the surety on any bond connected with the contract; and 

24 (C) the disbursing officer, if any, designated in the contract to 

25 make payment. 

26 (7) VALIDITY.—Notwithstanding any law governing the validity of 

27 assignments to the contrary, an assignment under this subsection is a 

28 valid assignment for all purposes. 

29 (8) NO REFUND TO COVER ASSIGNOR’S LIABILITY.—The assignee of 

30 an assignment under this subsection is not liable to make any refund 

31 to the Government because of an assignor’s liability to the Government, 

32 whether that liability arises from the contract or independently. 

33 (9) AVOIDING REDUCTION OR SETOFF WITH CERTAIN CONTRACTS.—

34 (A) CONTRACT PROVISION.—A contract of the Department of 

35 Defense, the General Services Administration, the Department of 

36 Energy, or another department or agency of the Government des37 ignated by the President may provide or be amended without con38 sideration to provide, on a determination of need by the President, 

39 that payments made to an assignee under the contract are not 

40 subject to reduction or setoff. Each determination of need by the 
141

•HR 4320 IH 

1 President under this subparagraph must be published in the Fed2 eral Register. 

3 (B) CARRYING OUT CONTRACT PROVISION.—When a ‘‘no reduc4 tion or setoff’’ provision as described in subparagraph (A) is in5 cluded in a contract, payments to the assignee are not subject to 

6 reduction or setoff for an assignor’s liability arising—

7 (i) independently of the contract; 

8 (ii) on account of renegotiation under a renegotiation stat9 ute or under a statutory renegotiation article in the contract; 

10 (iii) on account of fines; 

11 (iv) on account of penalties; or 

12 (v) on account of taxes, Social Security contributions, or 

13 the withholding or non-withholding of taxes or Social Security 

14 contributions, whether arising from or independently of the 

15 contract. 

16 (C) LIMITATION.—Subparagraph (B)(iv) does not apply to 

17 amounts which may be collected or withheld from the assignor in 

18 accordance with or for failure to comply with the terms of the con19 tract. 

20 § 6306. Prohibition on Members of Congress making con21 tracts with Federal Government 

22 (a) IN GENERAL.—A Member of Congress may not enter into or benefit 

23 from a contract or any part of a contract with the Federal Government. 

24 (b) EXEMPTIONS.—

25 (1) IN GENERAL.—Subsection (a) does not apply to contracts that 

26 the Secretary of Agriculture may enter into with farmers. 

27 (2) CERTAIN ACTS.—Subsection (a) does not apply to a contract en28 tered into under—

29 (A) the Agricultural Adjustment Act (7 U.S.C. 601 et seq.); 

30 (B) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); or 

31 (C) the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.). 

32 (3) PUBLIC RECORD.—An exemption under this subsection shall be 

33 made a matter of public record.

34 § 6307. Contracts with Government-owned establishments 

35 and availability of appropriations 

36 An order or contract placed with a Government-owned establishment for 

37 work, material, or the manufacture of material pertaining to an approved 

38 project is deemed to be an obligation in the same manner that a similar 

39 order or contract placed with a commercial manufacturer or private con40 tractor is an obligation. Appropriations remain available to pay an obliga41 tion to a Government-owned establishment just as appropriations remain 
142

•HR 4320 IH 

1 available to pay an obligation to a commercial manufacturer or private con2 tractor. 

3 § 6308. Contracts for transportation of Federal Government 

4 securities 

5 When practicable, a contract for transporting bullion, cash, or securities 

6 of the Federal Government shall be awarded to the lowest responsible bidder 

7 after notice to all parties with means of transportation. 

8 § 6309. Honorable discharge certificate in lieu of birth cer9 tificate 

10 (a) IN GENERAL.—An employer described in subsection (b) may not deny 

11 employment, on account of failure to produce a birth certificate, to an indi12 vidual who submits, in lieu of the birth certificate, an honorable discharge 

13 certificate (or certificate issued in lieu of an honorable discharge certificate) 

14 from the Army, Air Force, Navy, Marine Corps, or Coast Guard of the 

15 United States, unless the honorable discharge certificate shows on its face 

16 that the individual may have been an alien at the time of its issuance. 

17 (b) EMPLOYERS TO WHICH SECTION APPLIES.—An employer referred to 

18 in subsection (a) is an employer—

19 (1) engaged in—

20 (A) the production, maintenance, or storage of arms, armament, 

21 ammunition, implements of war, munitions, machinery, tools, 

22 clothing, food, fuel, or any articles or supplies, or parts or ingredi23 ents of any articles or supplies; or 

24 (B) the construction, reconstruction, repair, or installation of a 

25 building, plant, structure, or facility; and 

26 (2) engaged in the activity described in clause (1) under—

27 (A) a contract with the Federal Government; or 

28 (B) any contract that the President, the Secretary of the Army, 

29 the Secretary of the Air Force, the Secretary of the Navy, or the 

30 Secretary of Transportation certifies to the employer to be nec31 essary to the national defense. 

32 CHAPTER 65—CONTRACTS FOR MATERIALS, SUPPLIES, 

33 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. Authority to make exceptions. 

6507. Administrative provisions. 

6508. Hearing authority and procedures. 

6509. Other procedures. 

6510. Manufacturers and regular dealers. 

6511. Effect on other law.
143

•HR 4320 IH 

1 § 6501. Definitions 

2 In this chapter—

3 (1) AGENCY OF THE UNITED STATES.—The term ‘‘agency of the 

4 United States’’ means an executive department, independent establish5 ment, or other agency or instrumentality of the United States, the Dis6 trict of Columbia, or a corporation in which all stock is beneficially 

7 owned by the Federal Government. 

8 (2) PERSON.—The term ‘‘person’’ includes one or more legal rep9 resentatives, trustees, trustees in cases under title 11, or receivers. 

10 § 6502. Required contract terms 

11 A contract made by an agency of the United States for the manufacture 

12 or furnishing of materials, supplies, articles, or equipment, in an amount 

13 exceeding $10,000, shall include the following representations and stipula14 tions: 

15 (1) MINIMUM WAGE TO BE PAID.—All individuals employed by the 

16 contractor in the manufacture or furnishing of materials, supplies, arti17 cles, or equipment under the contract will be paid, without subsequent 

18 deduction or rebate on any account, not less than the prevailing min19 imum wage, as determined by the Secretary of Labor, for individuals 

20 employed in similar work or in the particular or similar industries or 

21 groups of industries currently operating in the locality in which the ma22 terials, supplies, articles, or equipment are to be manufactured or fur23 nished under the contract, except that this clause applies only to pur24 chases or contracts relating to industries that have been the subject 

25 matter of a determination by the Secretary. 

26 (2) MAXIMUM NUMBER OF HOURS TO BE WORKED IN A WEEK.—In27 dividuals employed by the contractor in the manufacture or furnishing 

28 of materials, supplies, articles, or equipment under the contract shall 

29 not be permitted to work in excess of 40 hours in any one week, except 

30 that this clause does not apply to an employer who has entered into 

31 an agreement with employees pursuant to section 7(b)(1) or (2) of the 

32 Fair Labor Standards Act of 1938 (29 U.S.C. 207(b)(1) or (2)). 

33 (3) INELIGIBLE EMPLOYEES.—Male individuals under 16 years of 

34 age, female individuals under 18 years of age, and convict labor will 

35 not be employed by the contractor in the manufacture or furnishing of 

36 materials, supplies, articles, or equipment under the contract, except 

37 that this clause, or other law or executive order containing similar pro38 hibitions against the purchase of goods by the Federal Government, 

39 does not apply to convict labor that satisfies the conditions of section 

40 1761(c) of title 18. 
144

•HR 4320 IH 

1 (4) STANDARDS OF PLACES AND WORKING CONDITIONS WHERE CON2 TRACT PERFORMED.—Materials, supplies, articles, or equipment will 

3 not be manufactured or furnished under the contract and no part of 

4 the contract will otherwise be performed in plants, factories, buildings, 

5 or surroundings, or under working conditions, that are unsanitary, haz6 ardous, or dangerous to the health and safety of employees engaged in 

7 the performance of the contract. Compliance with the safety, sanitary, 

8 and factory inspection laws of the State in which the work or part of 

9 the work is to be performed is prima facie evidence of compliance with 

10 this clause. 

11 § 6503. Breach or violation of required contract terms 

12 (a) APPLICABLE BREACH OR VIOLATION.—This section applies in case of 

13 breach or violation of a representation or stipulation included in a contract 

14 under section 6502 of this title. 

15 (b) LIQUIDATED DAMAGES.—In addition to damages for any other breach 

16 of the contract, the party responsible for a breach or violation described in 

17 subsection (a) is liable to the Federal Government for the following liq18 uidated damages: 

19 (1) An amount equal to the sum of $10 per day for each male indi20 vidual under 16 years of age and each female individual under 18 years 

21 of age and each convict laborer knowingly employed in the performance 

22 of the contract. 

23 (2) An amount equal to the sum of each underpayment of wages due 

24 an employee engaged in the performance of the contract, including any 

25 underpayments arising from deductions or rebates. 

26 (c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition to the 

27 Government being entitled to damages described in subsection (b), the agen28 cy of the United States that made the contract may cancel the contract and 

29 make open-market purchases or make other contracts for the completion of 

30 the original contract, charging any additional cost to the original contractor.

31 (d) RECOVERY OF AMOUNTS DUE.—An amount due the Government be32 cause of a breach or violation described in subsection (a) may be withheld 

33 from any amounts owed the contractor under the contract or may be recov34 ered in a suit brought by the Attorney General. 

35 (e) EMPLOYEE REIMBURSEMENT FOR UNDERPAYMENT OF WAGES.—An 

36 amount withheld or recovered under subsection (d) that is based on an un37 derpayment of wages as described in subsection (b)(2) shall be held in a 

38 special deposit account. On order of the Secretary of Labor, the amount 

39 shall be paid directly to the underpaid employee on whose account the 

40 amount was withheld or recovered. However, an employee’s claim for pay41 ment under this subsection may be entertained only if made within one year 
145

•HR 4320 IH 

1 from the date of actual notice to the contractor of the withholding or recov2 ery. 

3 § 6504. Three-year prohibition on new contracts in case of 

4 breach or violation 

5 (a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to 

6 each agency of the United States a list containing the names of persons 

7 found by the Secretary of Labor to have breached or violated a representa8 tion or stipulation included in a contract under section 6502 of this title. 

9 (b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends oth10 erwise, a contract described in section 6502 of this title may not be awarded 

11 to a person named on the list under subsection (a) of this section, or to 

12 an entity in which the person has a controlling interest, until three years 

13 have elapsed from the date of the determination by the Secretary of Labor 

14 that a breach or violation occurred. 

15 § 6505. Exclusions 

16 (a) ITEMS AVAILABLE IN THE OPEN MARKET.—This chapter does not 

17 apply to the purchase of materials, supplies, articles, or equipment that may 

18 usually be bought in the open market. 

19 (b) PERISHABLES AND AGRICULTURAL PRODUCTS.—This chapter does 

20 not apply to any of the following: 

21 (1) Perishables, including dairy, livestock and nursery products. 

22 (2) Agricultural or farm products processed for first sale by the 

23 original producers. 

24 (3) Contracts made by the Secretary of Agriculture for the purchase 

25 of agricultural commodities or products of agricultural commodities. 

26 (c) CARRIAGE OF FREIGHT OR PERSONNEL.—This chapter may not be 

27 construed to apply to—

28 (1) the carriage of freight or personnel by vessel, airplane, bus, 

29 truck, express, or railway line where published tariff rates are in effect; 

30 or 

31 (2) common carriers subject to the Communications Act of 1934 (47 

32 U.S.C. 151 et seq.). 

33 § 6506. Authority to make exceptions 

34 (a) AUTHORITY OF THE PRESIDENT TO SUSPEND.—The President may 

35 suspend any of the representations and stipulations contained in section 

36 6502 of this title whenever, in the President’s judgment, suspension is in 

37 the public interest. 

38 (b) DUTY OF THE SECRETARY OF LABOR TO MAKE EXCEPTIONS.—

39 When the head of an agency of the United States makes a written finding 

40 that the inclusion of representations or stipulations under section 6502 of 

41 this title in a proposal or contract will seriously impair the conduct of Fed-
146

•HR 4320 IH 

1 eral Government business, the Secretary of Labor shall make exceptions in 

2 specific cases or otherwise when justice or the public interest will be served. 

3 (c) AUTHORITY OF THE SECRETARY TO MODIFY EXISTING CON4 TRACTS.—When an agency of the United States and a contractor jointly 

5 recommend, the Secretary may modify the terms of an existing contract 

6 with respect to minimum wages and maximum hours of labor as the Sec7 retary finds necessary and proper in the public interest or to prevent injus8 tice and undue hardship. 

9 (d) AUTHORITY OF THE SECRETARY TO PRESCRIBE REGULATIONS.—The 

10 Secretary may prescribe regulations to allow reasonable limitations, vari11 ations, tolerances, and exemptions in the application of this chapter to con12 tractors, including with respect to minimum wages and maximum hours of 

13 labor. 

14 (e) RATE OF PAY FOR OVERTIME.—When the Secretary permits an in15 crease in the maximum hours of labor stipulated in a contract, the Sec16 retary shall set a rate of pay for overtime. The overtime rate must be at 

17 least one and one-half times the basic hourly rate. 

18 § 6507. Administrative provisions 

19 (a) IN GENERAL.—The Secretary of Labor shall administer this chapter. 

20 (b) USE OF GOVERNMENT OFFICERS AND EMPLOYEES.—The Secretary 

21 shall use Federal officers and employees and, with a State’s consent, State 

22 and local officers and employees as the Secretary finds necessary to assist 

23 in the administration of this chapter. 

24 (c) APPOINTMENTS.—The Secretary shall appoint an administrative offi25 cer and attorneys, experts, and other employees from time to time as the 

26 Secretary finds necessary for the administration of this chapter. The ap27 pointments are subject to chapter 51 and subchapter III of chapter 53 of 

28 title 5 and other law applicable to the employment and compensation of offi29 cers and employees of the Federal Government. 

30 (d) INVESTIGATIONS.—The Secretary, or an authorized representative of 

31 the Secretary, may make investigations and findings as provided in this 

32 chapter and may, in any part of the United States, prosecute an inquiry 

33 necessary to carry out this chapter. 

34 (e) REGULATIONS.—The Secretary may make, amend, and rescind regu35 lations as necessary to carry out this chapter. 

36 § 6508. Hearing authority and procedures 

37 (a) AUTHORITY TO HOLD HEARINGS.—The Secretary of Labor or an im38 partial representative designated by the Secretary may hold hearings when 

39 there is a complaint of breach or violation of a representation or stipulation 

40 included in a contract under section 6502 of this title. The Secretary may 

41 initiate the hearings on the Secretary’s own motion or on the application 
147

•HR 4320 IH 

1 of a person affected by the ruling of an agency of the United States relating 

2 to a proposal or contract under this chapter. 

3 (b) ORDERS TO COMPEL TESTIMONY.—The Secretary or an impartial 

4 representative designated by the Secretary may issue orders requiring wit5 nesses to attend hearings held under this section and to produce evidence 

6 and testify under oath. Witnesses shall be paid fees and mileage at the same 

7 rates as witnesses in courts of the United States. 

8 (c) ENFORCEMENT OF ORDERS.—If a person refuses or fails to obey an 

9 order issued under subsection (b), the Secretary or an impartial representa10 tive designated by the Secretary may bring an action to enforce the order 

11 in a district court of the United States or in the district court of a territory 

12 or possession of the United States. A court has jurisdiction to enforce the 

13 order if the inquiry is being carried out within the court’s judicial district 

14 or if the person is found or resides or transacts business within the court’s 

15 judicial district. The court may issue an order requiring the person to obey 

16 the order issued under subsection (b), and the court may punish any further 

17 refusal or failure as contempt of court. 

18 (d) FINDINGS OF FACT.—After notice and a hearing, the Secretary or an 

19 impartial representative designated by the Secretary shall make findings of 

20 fact. The findings are conclusive for agencies of the United States. If sup21 ported by a preponderance of the evidence, the findings are conclusive in 

22 any court of the United States. 

23 (e) DECISIONS.—The Secretary or an impartial representative designated 

24 by the Secretary may make decisions, based on findings of fact, that are 

25 considered necessary to enforce this chapter. 

26 § 6509. Other procedures 

27 (a) APPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS.—Not28 withstanding section 553 of title 5, subchapter II of chapter 5 and chapter

29 7 of title 5 are applicable in the administration of sections 6501–6505, 

30 6507, 6508, and 6511 of this title. 

31 (b) JUDICIAL REVIEW IN GENERAL.—Notwithstanding the inclusion of 

32 representations and stipulations in a contract under section 6502 of this 

33 title, an interested person has the right of judicial review of any legal ques34 tion which might otherwise be raised, including wage determinations and the 

35 interpretation of the terms ‘‘locality’’ and ‘‘open market’’. 

36 (c) WAGE DETERMINATIONS.—

37 (1) RECORD AND HEARING REQUIREMENTS.—A wage determination 

38 under section 6502(1) of this title shall be made on the record after 

39 opportunity for a hearing. 

40 (2) JUDICIAL REVIEW.—A person adversely affected or aggrieved by 

41 a wage determination under section 6502(1) of this title has the right 
148

•HR 4320 IH 

1 of judicial review of the determination, or of the applicability of the de2 termination, within 90 days after the determination is made, in the 

3 manner provided by chapter 7 of title 5. A person adversely affected 

4 or aggrieved by a wage determination is deemed to include a person 

5 in an industry to which the determination applies that is a supplier of 

6 material, supplies, articles, or equipment that are purchased or in7 tended to be purchased by the Federal Government from any source. 

8 § 6510. Manufacturers and regular dealers 

9 (a) PRESCRIBING STANDARDS.—The Secretary of Labor may prescribe, 

10 in regulations, standards for determining whether a contractor is a manu11 facturer or regular dealer with respect to materials, supplies, articles, or 

12 equipment to be manufactured or furnished under, or used in the perform13 ance of, a contract entered into by an agency of the United States. 

14 (b) JUDICIAL REVIEW.—An interested person has the right of judicial re15 view of any legal question relating to interpretation of the terms ‘‘regular 

16 dealer’’ and ‘‘manufacturer’’ as defined pursuant to subsection (a). 

17 § 6511. Effect on other law 

18 This chapter may not be construed to modify or amend the following pro19 visions: 

20 (1) Chapter 83 of this title. 

21 (2) Subchapter IV of chapter 31 of title 40. 

22 (3) Chapter 307 of title 18. 

23 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.

24 § 6701. Definitions 

25 In this chapter—

26 (1) COMPENSATION.—The term ‘‘compensation’’ means any of the 

27 payments or fringe benefits described in section 6703 of this title. 

28 (2) SERVICE EMPLOYEE.—The term ‘‘service employee’’—

29 (A) means an individual engaged in the performance of a con30 tract made by the Federal Government and not exempted under 

31 section 6702(b) of this title, whether negotiated or advertised, the 

32 principal purpose of which is to furnish services in the United 

33 States; 

34 (B) includes an individual without regard to any contractual re35 lationship alleged to exist between the individual and a contractor 

36 or subcontractor; but 
149

•HR 4320 IH 

1 (C) does not include an individual employed in a bona fide exec2 utive, administrative, or professional capacity, as those terms are 

3 defined in part 541 of title 29, Code of Federal Regulations. 

4 (3) UNITED STATES.—The term ‘‘United States’’—

5 (A) includes any State of the United States, the District of Co6 lumbia, Puerto Rico, the Virgin Islands, the outer Continental 

7 Shelf as defined in the Outer Continental Shelf Lands Act (43 

8 U.S.C. § 1331 et seq.), American Samoa, Guam, Wake Island, 

9 Eniwetok Atoll, Kwajalein Atoll, Johnston Island, and Canton Is10 land; but 

11 (B) does not include any other territory under the jurisdiction 

12 of the United States or any United States base or possession with13 in a foreign country. 

14 § 6702. Contracts to which this chapter applies 

15 (a) IN GENERAL.—Except as provided in subsection (b), this chapter ap16 plies to any contract or bid specification for a contract, whether negotiated 

17 or advertised, that—

18 (1) is made by the Federal Government or the District of Columbia; 

19 (2) involves an amount exceeding $2,500; and 

20 (3) has as its principal purpose the furnishing of services in the 

21 United States through the use of service employees. 

22 (b) EXEMPTIONS.—This chapter does not apply to—

23 (1) a contract of the Government or the District of Columbia for the 

24 construction, alteration, or repair, including painting and decorating, of 

25 public buildings or public works; 

26 (2) any work required to be done in accordance with chapter 65 of 

27 this title; 

28 (3) a contract for the carriage of freight or personnel by vessel, air29 plane, bus, truck, express, railway line or oil or gas pipeline where pub30 lished tariff rates are in effect; 

31 (4) a contract for the furnishing of services by radio, telephone, tele32 graph, or cable companies, subject to the Communications Act of 1934 

33 (47 U.S.C. 151 et seq.); 

34 (5) a contract for public utility services, including electric light and 

35 power, water, steam, and gas; 

36 (6) an employment contract providing for direct services to a Federal 

37 agency by an individual; or 

38 (7) a contract with the United States Postal Service, the principal 

39 purpose of which is the operation of postal contract stations. 
150

•HR 4320 IH 

1 § 6703. Required contract terms 

2 A contract to which this chapter applies under section 6702 of this title 

3 shall contain the following terms: 

4 (1) MINIMUM WAGE.—The contract shall contain a provision speci5 fying the minimum wage to be paid to each class of service employee 

6 engaged in the performance of the contract or any subcontract, as de7 termined by the Secretary of Labor or the Secretary’s authorized rep8 resentative, in accordance with prevailing rates in the locality, or, 

9 where a collective-bargaining agreement covers the service employees, 

10 in accordance with the rates provided for in the agreement, including 

11 prospective wage increases provided for in the agreement as a result 

12 of arm’s length negotiations. In any case the minimum wage may not 

13 be less than the minimum wage specified in section 6704 of this title. 

14 (2) FRINGE BENEFITS.—The contract shall contain a provision 

15 specifying the fringe benefits to be provided to each class of service em16 ployee engaged in the performance of the contract or any subcontract, 

17 as determined by the Secretary or the Secretary’s authorized represent18 ative to be prevailing in the locality, or, where a collective-bargaining 

19 agreement covers the service employees, to be provided for under the 

20 agreement, including prospective fringe benefit increases provided for 

21 in the agreement as a result of arm’s-length negotiations. The fringe 

22 benefits shall include medical or hospital care, pensions on retirement 

23 or death, compensation for injuries or illness resulting from occupa24 tional activity, or insurance to provide any of the foregoing, unemploy25 ment benefits, life insurance, disability and sickness insurance, accident 

26 insurance, vacation and holiday pay, costs of apprenticeship or other 

27 similar programs and other bona fide fringe benefits not otherwise re28 quired by Federal, State, or local law to be provided by the contractor 

29 or subcontractor. The obligation under this paragraph may be dis30 charged by furnishing any equivalent combinations of fringe benefits or 

31 by making equivalent or differential payments in cash under regula32 tions established by the Secretary. 

33 (3) WORKING CONDITIONS.—The contract shall contain a provision 

34 specifying that no part of the services covered by this chapter may be 

35 performed in buildings or surroundings or under working conditions, 

36 provided by or under the control or supervision of the contractor or any 

37 subcontractor, which are unsanitary or hazardous or dangerous to the 

38 health or safety of service employees engaged to provide the services. 

39 (4) NOTICE.—The contract shall contain a provision specifying that 

40 on the date a service employee begins work on a contract to which this 

41 chapter applies, the contractor or subcontractor will deliver to the em-
151

•HR 4320 IH 

1 ployee a notice of the compensation required under paragraphs (1) and 

2 (2), on a form prepared by the Federal agency, or will post a notice 

3 of the required compensation in a prominent place at the worksite. 

4 (5) GENERAL SCHEDULE PAY RATES AND PREVAILING RATE SYS5 TEMS.—The contract shall contain a statement of the rates that would 

6 be paid by the Federal agency to each class of service employee if sec7 tion 5332 or 5341 of title 5 were applicable to them. The Secretary 

8 shall give due consideration to these rates in making the wage and 

9 fringe benefit determinations specified in this section. 

10 § 6704. Limitation on minimum wage 

11 (a) IN GENERAL.—A contractor that makes a contract with the Federal 

12 Government, the principal purpose of which is to furnish services through 

13 the use of service employees, and any subcontractor, may not pay less than 

14 the minimum wage specified under section 6(a)(1) of the Fair Labor Stand15 ards Act of 1938 (29 U.S.C. 206(a)(1)) to an employee engaged in per16 forming work on the contract. 

17 (b) VIOLATIONS.—Sections 6705–6707(d) of this title are applicable to a 

18 violation of this section. 

19 § 6705. Violations 

20 (a) LIABILITY OF RESPONSIBLE PARTY.—A party responsible for a viola21 tion of a contract provision required under section 6703(1) or (2) of this 

22 title or a violation of section 6704 of this title is liable for an amount equal 

23 to the sum of any deduction, rebate, refund, or underpayment of compensa24 tion due any employee engaged in the performance of the contract. 

25 (b) RECOVERY OF AMOUNTS UNDERPAID TO EMPLOYEES.—

26 (1) WITHHOLDING ACCRUED PAYMENTS DUE ON CONTRACTS.—The 

27 total amount determined under subsection (a) to be due any employee 

28 engaged in the performance of a contract may be withheld from ac29 crued payments due on the contract or on any other contract between 

30 the same contractor and the Federal Government. The amount with31 held shall be held in a deposit fund. On order of the Secretary of 

32 Labor, the compensation found by the Secretary or the head of a Fed33 eral agency to be due an underpaid employee pursuant to this chapter 

34 shall be paid from the deposit fund directly to the underpaid employee. 

35 (2) BRINGING ACTIONS AGAINST CONTRACTORS.—If the accrued pay36 ments withheld under the terms of the contract are insufficient to reim37 burse a service employee with respect to whom there has been a failure 

38 to pay the compensation required pursuant to this chapter, the Govern39 ment may bring action against the contractor, subcontractor, or any 

40 sureties in any court of competent jurisdiction to recover the remaining 

41 amount of underpayment. Any amount recovered shall be held in the 
152

•HR 4320 IH 

1 deposit fund and shall be paid, on order of the Secretary, directly to 

2 the underpaid employee. Any amount not paid to an employee because 

3 of inability to do so within three years shall be covered into the Treas4 ury as miscellaneous receipts. 

5 (c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition to 

6 other actions in accordance with this section, when a violation of any con7 tract stipulation is found, the Federal agency that made the contract may 

8 cancel the contract on written notice to the original contractor. The Govern9 ment may then make other contracts or arrangements for the completion 

10 of the original contract, charging any additional cost to the original con11 tractor. 

12 (d) ENFORCEMENT OF SECTION.—In accordance with regulations pre13 scribed pursuant to section 6707(a)–(d) of this title, the Secretary or the 

14 head of a Federal agency may carry out this section. 

15 § 6706. Three-year prohibition on new contracts in case of 

16 violation 

17 (a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to 

18 each agency of the Federal Government a list containing the names of per19 sons or firms that a Federal agency or the Secretary of Labor has found 

20 to have violated this chapter. 

21 (b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends oth22 erwise because of unusual circumstances, a Government contract may not 

23 be awarded to a person or firm named on the list under subsection (a) of 

24 this section, or to an entity in which the person or firm has a substantial 

25 interest, until three years have elapsed from the date of publication of the 

26 list. If the Secretary does not recommend otherwise because of unusual cir27 cumstances, the Secretary shall, not later than 90 days after a hearing ex28 aminer has made a finding of a violation of this chapter, forward to the 

29 Comptroller General the name of the person or firm found to have violated 

30 this chapter. 

31 § 6707. Enforcement and administration of chapter 

32 (a) ENFORCEMENT OF CHAPTER.—Sections 6507 and 6508 of this title 

33 govern the Secretary of Labor’s authority to enforce this chapter, including 

34 the Secretary’s authority to make regulations, issue orders, hold hearings, 

35 make decisions based on findings of fact, and take other appropriate action 

36 under this chapter. 

37 (b) LIMITATIONS AND REGULATIONS FOR VARIATIONS, TOLERANCES, 

38 AND EXEMPTIONS.—The Secretary may provide reasonable limitations and 

39 may prescribe regulations allowing reasonable variation, tolerances, and ex40 emptions with respect to this chapter (other than subsection (f) of this sec41 tion), but only in special circumstances where the Secretary determines that 
153

•HR 4320 IH 

1 the limitation, variation, tolerance, or exemption is necessary and proper in 

2 the public interest or to avoid the serious impairment of Government busi3 ness, and is in accord with the remedial purpose of this chapter to protect 

4 prevailing labor standards. 

5 (c) PRESERVATION OF WAGES AND BENEFITS DUE UNDER PREDE6 CESSOR CONTRACTS.—

7 (1) IN GENERAL.—Under a contract which succeeds a contract sub8 ject to this chapter, and under which substantially the same services 

9 are furnished, a contractor or subcontractor may not pay a service em10 ployee less than the wages and fringe benefits the service employee 

11 would have received under the predecessor contract, including accrued 

12 wages and fringe benefits and any prospective increases in wages and 

13 fringe benefits provided for in a collective-bargaining agreement as a 

14 result of arm’s-length negotiations. 

15 (2) EXCEPTION.—This subsection does not apply if the Secretary 

16 finds after a hearing in accordance with regulations adopted by the 

17 Secretary that wages and fringe benefits under the predecessor con18 tract are substantially at variance with wages and fringe benefits pre19 vailing in the same locality for services of a similar character. 

20 (d) DURATION OF CONTRACTS.—Subject to limitations in annual appro21 priation acts but notwithstanding any other law, a contract to which this 

22 chapter applies may, if authorized by the Secretary, be for any term of 

23 years not exceeding five, if the contract provides for periodic adjustment of 

24 wages and fringe benefits pursuant to future determinations, issued in the 

25 manner prescribed in section 6703 of this title at least once every two years 

26 during the term of the contract, covering each class of service employee.

27 (e) EXCLUSION OF FRINGE BENEFIT PAYMENTS IN DETERMINING OVER28 TIME PAY.—In determining any overtime pay to which a service employee 

29 is entitled under Federal law, the regular or basic hourly rate of pay of the 

30 service employee does not include any fringe benefit payments computed 

31 under this chapter which are excluded from the definition of ‘‘regular rate’’ 

32 under section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 

33 207(e)). 

34 (f) TIMELINESS OF WAGE AND FRINGE BENEFIT DETERMINATIONS.—It 

35 is the intent of Congress that determinations of minimum wages and fringe 

36 benefits under section 6703(1) and (2) of this title should be made as soon 

37 as administratively feasible for all contracts subject to this chapter. In any 

38 event, the Secretary shall at least make the determinations for contracts 

39 under which more than five service employees are to be employed. 

40 CHAPTER 69—CONTRACT DISPUTES

Sec. 

6901. Definitions. 
154

•HR 4320 IH 

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.

1 § 6901. Definitions 

2 In this chapter—

3 (1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Admin4 istrator for Federal Procurement Policy appointed pursuant to chapter 

5 11 of this title. 

6 (2) AGENCY BOARD.—The term ‘‘agency board’’ means an agency 

7 board of contract appeals established under section 6905 of this title. 

8 (3) AGENCY HEAD.—The term ‘‘agency head’’ means the head and 

9 any assistant head of an executive agency. The term may include the 

10 chief official of a principal division of an executive agency if the head 

11 of the executive agency so designates that chief official. 

12 (4) CONTRACTING OFFICER.—The term ‘‘contracting officer’’—

13 (A) means an individual who, by appointment in accordance 

14 with applicable regulations, has the authority to make and admin15 ister contracts and to make determinations and findings with re16 spect to contracts; and 

17 (B) includes an authorized representative of the contracting of18 ficer, acting within the limits of the representative’s authority. 

19 (5) CONTRACTOR.—The term ‘‘contractor’’ means a party to a Fed20 eral Government contract other than the Government. 

21 (6) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ means—

22 (A) an executive department as defined in section 101 of title 

23 5; 

24 (B) a military department as defined in section 102 of title 5; 

25 (C) an independent establishment as defined in section 104 of 

26 title 5, except that the term does not include the General Account27 ing Office; 

28 (D) a wholly owned Government corporation as defined in sec29 tion 9101(3) of title 31; 

30 (E) the United States Postal Service; or 

31 (F) the Postal Rate Commission. 

32 (7) MISREPRESENTATION OF FACT.—The term ‘‘misrepresentation 

33 of fact’’ means a false statement of substantive fact, or conduct that 

34 leads to a belief of a substantive fact material to proper understanding 

35 of the matter in hand, made with intent to deceive or mislead. 
155

•HR 4320 IH 

1 § 6902. Applicability of chapter 

2 (a) EXECUTIVE AGENCY CONTRACTS.—Unless otherwise specifically pro3 vided in this chapter, this chapter applies to any express or implied contract 

4 (including those of the nonappropriated fund activities described in sections 

5 1346 and 1491 of title 28) made by an executive agency for—

6 (1) the procurement of property, other than real property; 

7 (2) the procurement of services; 

8 (3) the procurement of construction, alteration, repair, or mainte9 nance of real property; or 

10 (4) the disposal of personal property. 

11 (b) TENNESSEE VALLEY AUTHORITY CONTRACTS.—

12 (1) IN GENERAL.—With respect to contracts of the Tennessee Valley 

13 Authority, this chapter applies only to contracts containing a clause 

14 that requires contract disputes to be resolved through an agency ad15 ministrative process. 

16 (2) EXCLUSION.—Notwithstanding any other provision of this chap17 ter, this chapter does not apply to a contract of the Tennessee Valley 

18 Authority for the sale of fertilizer or electric power or related to the 

19 conduct or operation of the electric power system. 

20 (c) FOREIGN GOVERNMENT OR INTERNATIONAL ORGANIZATION CON21 TRACTS.—If an agency head determines that applying this chapter would 

22 not be in the public interest, this chapter does not apply to a contract with 

23 a foreign government, an agency of a foreign government, an international 

24 organization, or a subsidiary body of an international organization. 

25 (d) MARITIME CONTRACTS.—Appeals under section 6907(a) of this title 

26 and actions brought under sections 6904(b) and 6907(b)–(f) of this title, 

27 arising out of maritime contracts, are governed by the Act of March 9, 1920 

28 (known as the Suits in Admiralty Act) (46 App. U.S.C. 741 et seq.) or the 

29 Act of March 3, 1925 (known as the Public Vessels Act) (46 App. U.S.C. 

30 781 et seq.), as applicable, to the extent that those Acts are not inconsistent 

31 with this chapter. 

32 § 6903. Decision by contracting officer 

33 (a) APPLICABILITY.—

34 (1) IN GENERAL.—This section applies to claims relating to a con35 tract between the Federal Government and a contractor. 

36 (2) LIMITATION REGARDING CERTAIN PENALTIES AND FORFEIT37 URES.—The authority of this section does not extend to a claim or dis38 pute for penalties or forfeitures prescribed by statute or regulation that 

39 another Federal agency is specifically authorized to administer, settle, 

40 or determine. 

41 (b) CLAIMS GENERALLY.—
156

•HR 4320 IH 

1 (1) SUBMISSION OF CLAIMS TO CONTRACTING OFFICER.—Each claim 

2 by a contractor against the Government and each claim by the Govern3 ment against a contractor shall be submitted to the contracting officer 

4 for a decision. 

5 (2) CONTRACTOR’S CLAIMS IN WRITING.—Each claim by a contractor 

6 against the Government shall be in writing. 

7 (3) TIME FOR SUBMITTING CLAIMS.—

8 (A) IN GENERAL.—Each claim by a contractor against the Gov9 ernment and each claim by the Government against a contractor 

10 shall be submitted within six years after the accrual of the claim. 

11 (B) EXCEPTION.—This paragraph does not apply to a claim by 

12 the Government against a contractor that is based on a claim by 

13 the contractor involving fraud. 

14 (c) CERTIFICATION OF CLAIMS.—

15 (1) REQUIREMENT GENERALLY.—For claims of more than 

16 $100,000, the contractor shall certify that—

17 (A) the claim is made in good faith; 

18 (B) the supporting data are accurate and complete to the best 

19 of the contractor’s knowledge and belief; 

20 (C) the amount requested accurately reflects the contract ad21 justment for which the contractor believes the Government is lia22 ble; and 

23 (D) the certifier is authorized to certify the claim on behalf of 

24 the contractor.

25 (2) WHO MAY EXECUTE CERTIFICATION.—The certification required 

26 by paragraph (1) may be executed by an individual authorized to bind 

27 the contractor with respect to the claim. 

28 (3) FAILURE TO CERTIFY OR DEFECTIVE CERTIFICATION.—A con29 tracting officer is not obligated to render a final decision on a claim 

30 of more than $100,000 that is not certified in accordance with para31 graph (1) if, within 60 days after receipt of the claim, the contracting 

32 officer notifies the contractor in writing of the reasons why any at33 tempted certification was found to be defective. A defect in the certifi34 cation of a claim does not deprive a court or an agency board of juris35 diction over the claim. Prior to the entry of a final judgment by a court 

36 or a decision by an agency board, the court or agency board shall re37 quire a defective certification to be corrected. 

38 (d) FRAUDULENT CLAIMS.—

39 (1) NO AUTHORITY TO SETTLE.—This section does not authorize an 

40 agency head to settle, compromise, pay, or otherwise adjust any claim 

41 involving fraud. 
157

•HR 4320 IH 

1 (2) LIABILITY OF CONTRACTOR.—If a contractor is unable to sup2 port any part of the contractor’s claim and it is determined that the 

3 inability is attributable to a misrepresentation of fact or fraud by the 

4 contractor, then the contractor is liable to the Government for an 

5 amount equal to the unsupported part of the claim plus all of the Gov6 ernment’s costs attributable to reviewing the unsupported part of the 

7 claim. Liability under this paragraph shall be determined within six 

8 years of the commission of the misrepresentation of fact or fraud. 

9 (e) ISSUANCE OF DECISION.—The contracting officer shall issue a deci10 sion in writing and shall mail or otherwise furnish a copy of the decision 

11 to the contractor. 

12 (f) CONTENTS OF DECISION.—The contracting officer’s decision shall 

13 state the reasons for the decision reached and shall inform the contractor 

14 of the contractor’s rights as provided in this chapter. Specific findings of 

15 fact are not required. If made, specific findings of fact are not binding in 

16 any subsequent proceeding. 

17 (g) TIME FOR ISSUANCE OF DECISION.—

18 (1) CLAIM OF $100,000 OR LESS.—A contracting officer shall issue a 

19 decision on any submitted claim of $100,000 or less within 60 days 

20 from the contracting officer’s receipt of a written request from the con21 tractor that a decision be rendered within that period. 

22 (2) CLAIM OF MORE THAN $100,000.—A contracting officer shall, 

23 within 60 days of receipt of a submitted certified claim over 

24 $100,000—

25 (A) issue a decision; or 

26 (B) notify the contractor of the time within which a decision will 

27 be issued. 

28 (3) GENERAL REQUIREMENT OF REASONABLENESS.—The decision of 

29 a contracting officer on submitted claims shall be issued within a rea30 sonable time, in accordance with regulations prescribed by the agency, 

31 taking into account factors including the size and complexity of the 

32 claim and the adequacy of information in support of the claim provided 

33 by the contractor. 

34 (4) REQUESTING TRIBUNAL TO DIRECT ISSUANCE WITHIN SPECIFIED

35 TIME PERIOD.—A contractor may request a tribunal concerned to di36 rect a contracting officer to issue a decision in a specified period of 

37 time, as determined by the tribunal concerned, in the event of undue 

38 delay on the part of the contracting officer. 

39 (5) FAILURE TO ISSUE DECISION WITHIN REQUIRED TIME PERIOD.—

40 If a contracting officer fails to issue a decision on a claim within the 

41 required time period, the claim is deemed to be denied and an appeal 
158

•HR 4320 IH 

1 or action on the claim may be initiated as otherwise provided in this 

2 chapter. However, a tribunal concerned may, at its option, stay the 

3 proceedings of the appeal or action to obtain a decision by the con4 tracting officer. 

5 (h) FINALITY OF DECISION UNLESS APPEALED.—The contracting offi6 cer’s decision on a claim is final and conclusive and is not subject to review 

7 by any forum, tribunal, or Government agency, unless an appeal or action 

8 is timely commenced as authorized by this chapter. This chapter does not 

9 prohibit an executive agency from including a clause in a Government con10 tract requiring that, pending final decision of an appeal, action, or final set11 tlement, a contractor shall proceed diligently with performance of the con12 tract in accordance with the contracting officer’s decision. 

13 (i) ALTERNATIVE MEANS OF DISPUTE RESOLUTION.—

14 (1) IN GENERAL.—Notwithstanding any other provision of this chap15 ter, a contractor and a contracting officer may use any alternative 

16 means of dispute resolution under subchapter IV of chapter 5 of title 

17 5, or other mutually agreeable procedures, for resolving claims. All pro18 visions of subchapter IV of chapter 5 of title 5 apply to alternative 

19 means of dispute resolution under this subsection. 

20 (2) CERTIFICATION OF CLAIM.—The contractor shall certify the 

21 claim when required to do so under subsection (c)(1) or other law. 

22 (3) REJECTING REQUEST FOR ALTERNATIVE DISPUTE RESOLU23 TION.—

24 (A) CONTRACTING OFFICER.—A contracting officer who rejects 

25 a contractor’s request for alternative dispute resolution pro26 ceedings shall provide the contractor with a written explanation, 

27 citing one or more of the conditions in section 572(b) of title 5 

28 or other specific reasons that alternative dispute resolution proce29 dures are inappropriate. 

30 (B) CONTRACTOR.—A contractor that rejects an agency’s re31 quest for alternative dispute resolution proceedings shall inform 

32 the agency in writing of the contractor’s specific reasons for re33 jecting the request. 

34 § 6904. Contractor’s right of appeal from decision by con35 tracting officer 

36 (a) APPEAL TO AGENCY BOARD.—A contractor, within 90 days from the 

37 date of receipt of a contracting officer’s decision under section 6903 of this 

38 title, may appeal the decision to an agency board as provided in section 

39 6905 of this title. 

40 (b) BRINGING AN ACTION DE NOVO IN FEDERAL COURT.—
159

•HR 4320 IH 

1 (1) IN GENERAL.—Except as provided in paragraph (2), and in lieu 

2 of appealing the decision of a contracting officer under section 6903 

3 of this title to an agency board, a contractor may bring an action di4 rectly on the claim in the United States Court of Federal Claims, not5 withstanding any contract provision, regulation, or rule of law to the 

6 contrary. 

7 (2) TENNESSEE VALLEY AUTHORITY.—In the case of an action 

8 against the Tennessee Valley Authority, the contractor may only bring 

9 an action directly on the claim in a district court of the United States 

10 pursuant to section 1337 of title 28, notwithstanding any contract pro11 vision, regulation, or rule of law to the contrary. 

12 (3) TIME FOR FILING.—A contractor shall file any action under 

13 paragraph (1) or (2) within 12 months from the date of receipt of a 

14 contracting officer’s decision under section 6903 of this title. 

15 (4) DE NOVO.—An action under paragraph (1) or (2) shall proceed 

16 de novo in accordance with the rules of the appropriate court. 

17 § 6905. Agency boards 

18 (a) ESTABLISHMENT.—

19 (1) IN GENERAL.—Except as provided in paragraph (2), an agency 

20 board of contract appeals may be established within an executive agen21 cy when the agency head, after consultation with the Administrator, de22 termines from a workload study that the volume of contract claims jus23 tifies the establishment of a full-time agency board of at least three 

24 members who shall have no other inconsistent duties. Workload studies

25 will be updated at least once every three years and submitted to the 

26 Administrator. 

27 (2) TENNESSEE VALLEY AUTHORITY.—The Board of Directors of 

28 the Tennessee Valley Authority may establish an agency board of con29 tract appeals for the Authority of an indeterminate number of mem30 bers. 

31 (3) GUIDELINES.—The Administrator, pursuant to the authority 

32 conferred under part B of subtitle I of this title and as necessary or 

33 desirable to carry out this chapter, shall issue guidelines with respect 

34 to the establishment, functions, and procedures of agency boards, ex35 cept for the agency board established by the Tennessee Valley Author36 ity. 

37 (b) APPOINTMENT OF MEMBERS AND COMPENSATION.—

38 (1) IN GENERAL.—Except as provided in paragraph (2), members of 

39 an agency board are selected and appointed in the same way that ad40 ministrative law judges are appointed pursuant to section 3105 of title 

41 5, with an additional requirement that members of an agency board 
160

•HR 4320 IH 

1 must have had at least five years of experience in public contract law. 

2 A chairman and vice chairman of each agency board shall be des3 ignated by the agency head from among the appointed members. Com4 pensation for the chairman, vice chairman, and other members is deter5 mined under section 5372a of title 5. 

6 (2) TENNESSEE VALLEY AUTHORITY.—The Board of Directors of 

7 the Tennessee Valley Authority shall establish criteria for the appoint8 ment of members to the agency board established under subsection 

9 (a)(2), and shall designate a chairman of the agency board. The chair10 man and other members of the agency board shall receive compensa11 tion, at the daily equivalent of the rates determined under section 

12 5372a of title 5, for each day they are engaged in the actual perform13 ance of their duties as members of the agency board. 

14 (c) INTER-AGENCY ARRANGEMENTS.—If the volume of contract claims is 

15 not sufficient to justify an agency board under subsection (a), or if an agen16 cy head otherwise considers it appropriate, the agency head shall arrange 

17 for appeals from decisions by contracting officers of the agency to be de18 cided by the agency board of another executive agency. If an agency head 

19 is unable to make such an arrangement, the agency head shall submit any 

20 appeals to the Administrator for placement with an agency board. This sub21 section does not apply to the Tennessee Valley Authority. 

22 (d) JURISDICTION.—

23 (1) IN GENERAL.—Each agency board has jurisdiction to decide any 

24 appeal from the decision of a contracting officer, relative to a contract 

25 made by—

26 (A) the agency board’s own agency; or 

27 (B) another agency, if the other agency or the Administrator 

28 designates the agency board to decide the appeal pursuant to sub29 section (c). 

30 (2) RELIEF.—In exercising jurisdiction, an agency board may grant 

31 any relief that would be available to a litigant asserting a contract 

32 claim in the United States Court of Federal Claims. 

33 (e) SUBPENA, DISCOVERY, AND DEPOSITION.—A member of an agency 

34 board may administer oaths to witnesses, authorize depositions and dis35 covery proceedings, and require by subpena the attendance of witnesses, and 

36 production of books and papers, for the taking of testimony or evidence by 

37 deposition or in the hearing of an appeal by the agency board. In case of 

38 contumacy or refusal to obey a subpena by a person who resides, is found, 

39 or transacts business within the jurisdiction of a United States district 

40 court, the court, upon application of the agency board through the Attorney 

41 General; or upon application by the agency board of the Tennessee Valley 
161

•HR 4320 IH 

1 Authority, shall have jurisdiction to issue the person an order requiring the 

2 person to appear before the agency board or a member of the agency board, 

3 to produce evidence or to give testimony, or both. Any failure of the person 

4 to obey the order of the court may be punished by the court as contempt 

5 of court. 

6 (f) DECISIONS.—An agency board shall—

7 (1) to the fullest extent practicable provide informal, expeditious, and 

8 inexpensive resolution of disputes; 

9 (2) issue a decision in writing or take other appropriate action on 

10 each appeal submitted; and 

11 (3) mail or otherwise furnish a copy of the decision to the contractor 

12 and the contracting officer. 

13 § 6906. Agency board procedures for accelerated and small 

14 claims 

15 (a) ACCELERATED PROCEDURE WHERE $100,000 OR LESS IN DIS16 PUTE.—The rules of each agency board shall include a procedure for the 

17 accelerated disposition of any appeal from a decision of a contracting officer 

18 where the amount in dispute is $100,000 or less. The accelerated procedure 

19 is applicable at the sole election of the contractor. An appeal under the ac20 celerated procedure shall be resolved, whenever possible, within 180 days 

21 from the date the contractor elects to use the procedure. 

22 (b) SMALL CLAIMS PROCEDURE WHERE $50,000 OR LESS IN DIS23 PUTE.—

24 (1) IN GENERAL.—The rules of each agency board shall include a 

25 procedure for the expedited disposition of any appeal from a decision 

26 of a contracting officer where the amount in dispute is $50,000 or less. 

27 The small claims procedure is applicable at the sole election of the con28 tractor. 

29 (2) SIMPLIFIED RULES OF PROCEDURE.—The small claims proce30 dure shall provide for simplified rules of procedure to facilitate decision 

31 making. An appeal under the small claims procedure may be decided 

32 by a single member of the agency board with concurrences as may be 

33 provided by rule or regulation. 

34 (3) TIME OF DECISION.—An appeal under the small claims proce35 dure shall be resolved, whenever possible, within 120 days from the 

36 date the contractor elects to use the procedure. 

37 (4) FINALITY OF DECISION.—A decision against the Federal Govern38 ment or against the contractor reached under the small claims proce39 dure is final and conclusive and may not be set aside except in cases 

40 of fraud. 
162

•HR 4320 IH 

1 (5) NO PRECEDENT.—Administrative determinations and final deci2 sions under this subsection have no value as precedent for future cases 

3 under this chapter. 

4 (6) REVIEW OF REQUISITE AMOUNT IN CONTROVERSY.—The Admin5 istrator, from time to time, may review the dollar amount specified in 

6 paragraph (1) and adjust the amount in accordance with economic in7 dexes selected by the Administrator. 

8 § 6907. Judicial review of agency board decisions 

9 (a) REVIEW.—

10 (1) IN GENERAL.—The decision of an agency board is final, except 

11 that—

12 (A) a contractor may appeal the decision to the United States 

13 Court of Appeals for the Federal Circuit within 120 days from the 

14 date the contractor receives a copy of the decision; or 

15 (B) if an agency head determines that an appeal should be 

16 taken, the agency head, with the prior approval of the Attorney 

17 General, may transmit the decision to the Court of Appeals for the 

18 Federal Circuit for judicial review under section 1295 of title 28, 

19 within 120 days from the date the agency receives a copy of the 

20 decision.

21 (2) TENNESSEE VALLEY AUTHORITY.—Notwithstanding paragraph 

22 (1), a decision of the agency board of the Tennessee Valley Authority 

23 is final, except that—

24 (A) a contractor may appeal the decision to a United States dis25 trict court pursuant to section 1337 of title 28, within 120 days 

26 from the date the contractor receives a copy of the decision; or 

27 (B) the Tennessee Valley Authority may appeal the decision to 

28 a United States district court pursuant to section 1337 of title 28, 

29 within 120 days from the date of the decision. 

30 (3) REVIEW OF ARBITRATION.—An award by an arbitrator under 

31 this chapter shall be reviewed pursuant to sections 9 through 13 of title 

32 9, except that the court may set aside or limit any award that is found 

33 to violate limitations imposed by Federal statute. 

34 (b) FINALITY OF AGENCY BOARD DECISIONS ON QUESTIONS OF LAW

35 AND FACT.—Notwithstanding any contract provision, regulation, or rule of 

36 law to the contrary, in an appeal by a contractor or the Federal Government 

37 from the decision of an agency board pursuant to section 6905(f) of this 

38 title—

39 (1) the decision of the agency board on a question of law is not final 

40 or conclusive; but 
163

•HR 4320 IH 

1 (2) the decision of the agency board on a question of fact is final 

2 and conclusive and may not be set aside unless the decision is—

3 (A) fraudulent, arbitrary, or capricious; 

4 (B) so grossly erroneous as to necessarily imply bad faith; or 

5 (C) not supported by substantial evidence. 

6 (c) REMAND.—In an appeal by a contractor or the Government from the 

7 decision of an agency board pursuant to section 6905(f) of this title, the 

8 court may render an opinion and judgment and remand the case for further 

9 action by the agency board or by the executive agency as appropriate, with 

10 direction the court considers just and proper. 

11 (d) CONSOLIDATION.—If two or more actions arising from one contract 

12 are filed in the United States Court of Federal Claims and one or more 

13 agency boards, for the convenience of parties or witnesses or in the interest 

14 of justice, the United States Court of Federal Claims may order the consoli15 dation of the actions in that court or transfer any actions to or among the 

16 agency boards involved. 

17 (e) JUDGMENTS AS TO FEWER THAN ALL CLAIMS OR PARTIES.—In an 

18 action filed pursuant to this chapter involving two or more claims, counter19 claims, cross-claims, or third-party claims, and where a portion of one of 

20 the claims can be divided for purposes of decision or judgment, and in any 

21 actions where multiple parties are involved, the court, whenever appropriate, 

22 may enter a judgment as to one or more but fewer than all of the claims 

23 or portions of claims or parties. 

24 (f) ADVISORY OPINIONS.—

25 (1) IN GENERAL.—Whenever an action involving an issue described 

26 in paragraph (2) is pending in a district court of the United States, 

27 the district court may request an agency board to provide the court 

28 with an advisory opinion on the matters of contract interpretation 

29 under consideration. 

30 (2) APPLICABLE ISSUE.—An issue referred to in paragraph (1) is 

31 any issue that could be the proper subject of a final decision of a con32 tracting officer appealable under this chapter. 

33 (3) REFERRAL TO AGENCY BOARD WITH JURISDICTION.—A district 

34 court shall direct a request under paragraph (1) to the agency board 

35 having jurisdiction under this chapter to adjudicate appeals of contract 

36 claims under the contract being interpreted by the court. 

37 (4) TIMELY RESPONSE.—After receiving a request for an advisory 

38 opinion under paragraph (1), an agency board shall provide the advi39 sory opinion in a timely manner to the district court making the re40 quest. 
164

•HR 4320 IH 

1 § 6908. Payment of claims 

2 (a) JUDGMENTS.—Any judgment against the United States on a claim 

3 under this chapter shall be paid promptly in accordance with the procedures 

4 provided by section 1304 of title 31. 

5 (b) MONETARY AWARDS.—Any monetary award to a contractor by an 

6 agency board shall be paid promptly in accordance with the procedures con7 tained in subsection (a). 

8 (c) REIMBURSEMENT.—Payments made pursuant to subsections (a) and 

9 (b) shall be reimbursed to the fund provided by section 1304 of title 31 by 

10 the agency whose appropriations were used for the contract out of available 

11 funds or by obtaining additional appropriations for purposes of reimburse12 ment. 

13 (d) TENNESSEE VALLEY AUTHORITY.—

14 (1) JUDGMENTS.—Notwithstanding subsections (a) through (c), any 

15 judgment against the Tennessee Valley Authority on a claim under this 

16 chapter shall be paid promptly in accordance with section 9(b) of the 

17 Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)). 

18 (2) MONETARY AWARDS.—Notwithstanding subsections (a) through 

19 (c), any monetary award to a contractor by the agency board of the 

20 Tennessee Valley Authority shall be paid in accordance with section 

21 9(b) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 

22 831h(b)). 

23 § 6909. Interest 

24 (a) PERIOD.—

25 (1) IN GENERAL.—Interest on an amount found due a contractor on 

26 a claim shall be paid to the contractor for the period beginning with 

27 the date the contracting officer receives the contractor’s claim, pursu28 ant to section 6903(b)(3) of this title, until the date of payment of the 

29 claim. 

30 (2) DEFECTIVE CERTIFICATION.—On a claim for which the certifi31 cation under section 6903(c)(1) of this title is found to be defective, 

32 any interest due under this section shall be paid for the period begin33 ning with the date the contracting officer initially receives the contrac34 tor’s claim until the date of payment of the claim. 

35 (b) RATE.—Interest shall accrue and be paid at a rate which the Sec36 retary of the Treasury shall specify as applicable for each successive six37 month period. The rate shall be determined by the Secretary taking into 

38 consideration current private commercial rates of interest for new loans ma39 turing in approximately five years.

40 Subtitle III—Miscellaneous

Chapter Sec. 

81. Drug-Free Workplace .............................................................................. 8101
165

•HR 4320 IH 

83. Buy American ............................................................................................. 8301

85. Committee for Purchase From People Who Are Blind or Severely Disabled.8501

87. Kickbacks ..................................................................................................... 8701

1 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.

2 § 8101. Definitions and construction 

3 (a) DEFINITIONS.—In this chapter—

4 (1) CONTRACTOR.—The term ‘‘contractor’’ means the department, 

5 division, or other unit of a person responsible for the performance 

6 under the contract. 

7 (2) CONTROLLED SUBSTANCE.—The term ‘‘controlled substance’’ 

8 means a controlled substance in schedules I through V of section 202 

9 of the Comprehensive Drug Abuse Prevention and Control Act of 1970 

10 (21 U.S.C. 812). 

11 (3) CONVICTION.—The term ‘‘conviction’’ means a finding of guilt 

12 (including a plea of nolo contendere), an imposition of sentence, or 

13 both, by a judicial body charged with the responsibility to determine 

14 violations of Federal or State criminal drug statutes.

15 (4) CRIMINAL DRUG STATUTE.—The term ‘‘criminal drug statute’’ 

16 means a criminal statute involving manufacture, distribution, dispensa17 tion, use, or possession of a controlled substance. 

18 (5) DRUG-FREE WORKPLACE.—The term ‘‘drug-free workplace’’ 

19 means a site of an entity—

20 (A) for the performance of work done in connection with a spe21 cific contract or grant described in section 8102 or 8103 of this 

22 title; and 

23 (B) at which employees of the entity are prohibited from engag24 ing in the unlawful manufacture, distribution, dispensation, pos25 session, or use of a controlled substance in accordance with the 

26 requirements of the Anti-Drug Abuse Act of 1988 (Public Law 

27 100–690, 102 Stat. 4181). 

28 (6) EMPLOYEE.—The term ‘‘employee’’ means the employee of a 

29 contractor or grantee directly engaged in the performance of work pur30 suant to the contract or grant described in section 8102 or 8103 of 

31 this title. 

32 (7) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means an agen33 cy as defined in section 552(f) of title 5. 
166

•HR 4320 IH 

1 (8) GRANTEE.—The term ‘‘grantee’’ means the department, division, 

2 or other unit of a person responsible for the performance under the 

3 grant. 

4 (b) CONSTRUCTION.—This chapter does not require law enforcement 

5 agencies to comply with this chapter if the head of the agency determines 

6 it would be inappropriate in connection with the agency’s undercover oper7 ations. 

8 § 8102. Drug-free workplace requirements for Federal con9 tractors 

10 (a) IN GENERAL.—

11 (1) PERSONS OTHER THAN INDIVIDUALS.—A person other than an 

12 individual shall not be considered a responsible source (as defined in 

13 section 112 of this title) for the purposes of being awarded a contract 

14 for the procurement of any property or services of a value greater than 

15 the simplified acquisition threshold (as defined in section 133 of this 

16 title) by a Federal agency, other than a contract for the procurement 

17 of commercial items (as defined in section 103 of this title), unless the 

18 person agrees to provide a drug-free workplace by— 

19 (A) publishing a statement notifying employees that the unlaw20 ful manufacture, distribution, dispensation, possession, or use of 

21 a controlled substance is prohibited in the person’s workplace and 

22 specifying the actions that will be taken against employees for vio23 lations of the prohibition; 

24 (B) establishing a drug-free awareness program to inform em25 ployees about— 

26 (i) the dangers of drug abuse in the workplace; 

27 (ii) the person’s policy of maintaining a drug-free work28 place; 

29 (iii) available drug counseling, rehabilitation, and employee 

30 assistance programs; and 

31 (iv) the penalties that may be imposed on employees for 

32 drug abuse violations; 

33 (C) making it a requirement that each employee to be engaged 

34 in the performance of the contract be given a copy of the state35 ment required by subparagraph (A); 

36 (D) notifying the employee in the statement required by sub37 paragraph (A) that as a condition of employment on the contract 

38 the employee will—

39 (i) abide by the terms of the statement; and 
167

•HR 4320 IH 

1 (ii) notify the employer of any criminal drug statute convic2 tion for a violation occurring in the workplace no later than 

3 five days after the conviction; 

4 (E) notifying the contracting agency within 10 days after receiv5 ing notice under subparagraph (D)(ii) from an employee or other6 wise receiving actual notice of a conviction; 

7 (F) imposing a sanction on, or requiring the satisfactory partici8 pation in a drug abuse assistance or rehabilitation program by, 

9 any employee who is convicted, as required by section 8104 of this 

10 title; and 

11 (G) making a good faith effort to continue to maintain a drug12 free workplace through implementation of subparagraphs (A)–(F). 

13 (2) INDIVIDUALS.—A Federal agency shall not make a contract with 

14 an individual unless the individual agrees not to engage in the unlawful 

15 manufacture, distribution, dispensation, possession, or use of a con16 trolled substance in the performance of the contract. 

17 (b) SUSPENSION, TERMINATION, OR DEBARMENT OF CONTRACTOR.—

18 (1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBARMENT.—

19 Payment under a contract awarded by a Federal agency may be sus20 pended and the contract may be terminated, and the contractor or indi21 vidual who made the contract with the agency may be suspended or 

22 debarred in accordance with the requirements of this section, if the 

23 head of the agency determines that—

24 (A) the contractor is violating, or has violated, the requirements 

25 of subparagraph (A), (B), (C), (D), (E), or (F) of subsection 

26 (a)(1); or 

27 (B) the number of employees of the contractor who have been 

28 convicted of violations of criminal drug statutes for violations oc29 curring in the workplace indicates that the contractor has failed 

30 to make a good faith effort to provide a drug-free workplace as 

31 required by subsection (a). 

32 (2) CONDUCT OF SUSPENSION, TERMINATION, AND DEBARMENT

33 PROCEEDINGS.—A contracting officer who determines in writing that 

34 cause for suspension of payments, termination, or suspension or debar35 ment exists shall initiate an appropriate action, to be conducted by the 

36 agency concerned in accordance with the Federal Acquisition Regula37 tion and applicable agency procedures. The Federal Acquisition Regula38 tion shall be revised to include rules for conducting suspension and de39 barment proceedings under this subsection, including rules providing 

40 notice, opportunity to respond in writing or in person, and other proce-
168

•HR 4320 IH 

1 dures as may be necessary to provide a full and fair proceeding to a 

2 contractor or individual. 

3 (3) EFFECT OF DEBARMENT.—A contractor or individual debarred 

4 under this subsection is ineligible for award of a contract by a Federal 

5 agency, and shall not participate in a future procurement by a Federal 

6 agency, for a period specified in the final decision issued under this 

7 subsection, not to exceed five years. 

8 § 8103. Drug-free workplace requirements for Federal grant 

9 recipients 

10 (a) IN GENERAL.—

11 (1) PERSONS OTHER THAN INDIVIDUALS.—A person other than an 

12 individual shall not receive a grant from a Federal agency unless the 

13 person agrees to provide a drug-free workplace by— 

14 (A) publishing a statement notifying employees that the unlaw15 ful manufacture, distribution, dispensation, possession, or use of 

16 a controlled substance is prohibited in the grantee’s workplace and 

17 specifying the actions that will be taken against employees for vio18 lations of the prohibition; 

19 (B) establishing a drug-free awareness program to inform em20 ployees about— 

21 (i) the dangers of drug abuse in the workplace; 

22 (ii) the grantee’s policy of maintaining a drug-free work23 place;

24 (iii) available drug counseling, rehabilitation, and employee 

25 assistance programs; and 

26 (iv) the penalties that may be imposed on employees for 

27 drug abuse violations; 

28 (C) making it a requirement that each employee to be engaged 

29 in the performance of the grant be given a copy of the statement 

30 required by subparagraph (A); 

31 (D) notifying the employee in the statement required by sub32 paragraph (A) that as a condition of employment in the grant the 

33 employee will—

34 (i) abide by the terms of the statement; and 

35 (ii) notify the employer of any criminal drug statute convic36 tion for a violation occurring in the workplace no later than 

37 five days after the conviction; 

38 (E) notifying the granting agency within 10 days after receiving 

39 notice under subparagraph (D)(ii) from an employee or otherwise 

40 receiving actual notice of a conviction; 
169

•HR 4320 IH 

1 (F) imposing a sanction on, or requiring the satisfactory partici2 pation in a drug abuse assistance or rehabilitation program by, 

3 any employee who is convicted, as required by section 8104 of this 

4 title; and 

5 (G) making a good faith effort to continue to maintain a drug6 free workplace through implementation of subparagraphs (A)–(F). 

7 (2) INDIVIDUALS.—A Federal agency shall not make a grant to an 

8 individual unless the individual agrees not to engage in the unlawful 

9 manufacture, distribution, dispensation, possession, or use of a con10 trolled substance in conducting an activity with the grant. 

11 (b) SUSPENSION, TERMINATION, OR DEBARMENT OF GRANTEE.—

12 (1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBARMENT.—

13 Payment under a grant awarded by a Federal agency may be sus14 pended and the grant may be terminated, and the grantee may be sus15 pended or debarred, in accordance with the requirements of this sec16 tion, if the head of the agency or the official designee of the head of 

17 the agency determines in writing that—

18 (A) the grantee is violating, or has violated, the requirements 

19 of subparagraph (A), (B), (C), (D), (E), or (F) of subsection 

20 (a)(1); or 

21 (B) the number of employees of the grantee who have been con22 victed of violations of criminal drug statutes for violations occur23 ring in the workplace indicates that the contractor has failed to 

24 make a good faith effort to provide a drug-free workplace as re25 quired by subsection (a)(1). 

26 (2) CONDUCT OF SUSPENSION, TERMINATION, AND DEBARMENT

27 PROCEEDINGS.—A suspension of payments, termination, or suspension 

28 or debarment proceeding subject to this subsection shall be conducted 

29 in accordance with applicable law, including Executive Order 12549 or 

30 any superseding Executive order and any regulations prescribed to im31 plement the law or Executive order. 

32 (3) EFFECT OF DEBARMENT.—A grantee debarred under this sub33 section is ineligible for award of a grant by a Federal agency, and shall 

34 not participate in a future grant by a Federal agency for a period spec35 ified in the final decision issued under this subsection, not to exceed 

36 5 years. 

37 § 8104. Employee sanctions and remedies 

38 Within 30 days after receiving notice from an employee of a conviction 

39 pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) of this title, a 

40 contractor or grantee shall— 
170

•HR 4320 IH 

1 (1) take appropriate personnel action against the employee, up to 

2 and including termination; or 

3 (2) require the employee to satisfactorily participate in a drug abuse 

4 assistance or rehabilitation program approved for those purposes by a 

5 Federal, State, or local health, law enforcement, or other appropriate 

6 agency. 

7 § 8105. Waiver 

8 (a) IN GENERAL.—The head of an agency may waive a suspension of 

9 payments, termination of the contract or grant, or suspension or debarment 

10 under this chapter with respect to a particular contract or grant if— 

11 (1) in the case of a contract, the head of the agency determines 

12 under section 8102(b)(1) of this title, after a final determination is 

13 issued under section 8102(b)(1), that suspension of payments, termi14 nation of the contract, suspension or debarment of the contractor, or 

15 refusal to permit a person to be treated as a responsible source for a 

16 contract would severely disrupt the operation of the agency to the det17 riment of the Federal Government or the general public; or 

18 (2) in the case of a grant, the head of the agency determines that 

19 suspension of payments, termination of the grant, or suspension or de20 barment of the grantee would not be in the public interest. 

21 (b) WAIVER AUTHORITY MAY NOT BE DELEGATED.—The authority of 

22 the head of an agency under this section to waive a suspension, termination, 

23 or debarment shall not be delegated. 

24 § 8106. Regulations 

25 Governmentwide regulations governing actions under this chapter shall be 

26 issued pursuant to part B of subtitle I of this title.

27 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.

28 § 8301. Definitions 

29 In this chapter—

30 (1) PUBLIC BUILDING, PUBLIC USE, AND PUBLIC WORK.—The terms 

31 ‘‘public building’’, ‘‘public use’’, and ‘‘public work’’ mean a public 

32 building of, use by, and a public work of, the Federal Government, the 

33 District of Columbia, Puerto Rico, American Samoa, and the Virgin Is34 lands. 

35 (2) UNITED STATES.—The term ‘‘United States’’ includes any place 

36 subject to the jurisdiction of the United States. 
171

•HR 4320 IH 

1 § 8302. American materials required for public use 

2 (a) IN GENERAL.—Only unmanufactured articles, materials, and supplies 

3 that have been mined or produced in the United States, and only manufac4 tured articles, materials, and supplies that have been manufactured in the 

5 United States substantially all from articles, materials, or supplies mined, 

6 produced, or manufactured in the United States, shall be acquired for public 

7 use unless the head of the department or independent establishment con8 cerned determines the acquisition is inconsistent with the public interest or 

9 the cost to be unreasonable. 

10 (b) EXCEPTIONS.—This section does not apply—

11 (1) to articles, materials, or supplies for use outside the United 

12 States; 

13 (2) if the articles, materials, or supplies of the class or kind to be 

14 used, or the articles, materials, or supplies from which they are manu15 factured, are not mined, produced, or manufactured in the United 

16 States in sufficient and reasonably available commercial quantities and 

17 are not of a satisfactory quality; and 

18 (3) to manufactured articles, materials, or supplies procured under 

19 a contract with an award value that is not more than the micro-pur20 chase threshold under section 1902 of this title. 

21 § 8303. Contracts for public works 

22 (a) IN GENERAL.—Every contract for the construction, alteration, or re23 pair of any public building or public work in the United States shall contain

24 a provision that in the performance of the work the contractor, subcontrac25 tors, material men, or suppliers shall use only—

26 (1) unmanufactured articles, materials, and supplies that have been 

27 mined or produced in the United States; and 

28 (2) manufactured articles, materials, and supplies that have been 

29 manufactured in the United States substantially all from articles, mate30 rials, or supplies mined, produced, or manufactured in the United 

31 States. 

32 (b) EXCEPTIONS.—

33 (1) IN GENERAL.—This section does not apply—

34 (A) to articles, materials, or supplies for use outside the United 

35 States; 

36 (B) if the articles, materials, or supplies of the class or kind to 

37 be used, or the articles, materials, or supplies from which they are 

38 manufactured, are not mined, produced, or manufactured in the 

39 United States in sufficient and reasonably available commercial 

40 quantities and are not of a satisfactory quality; and 
172

•HR 4320 IH 

1 (C) to manufactured articles, materials, or supplies procured 

2 under any contract with an award value that is not more than the 

3 micro-purchase threshold under section 1902 of this title. 

4 (2) PARTICULAR ARTICLE, MATERIAL, OR SUPPLY.—If the head of 

5 the department or independent establishment making the contract finds 

6 that it is impracticable to comply with subsection (a) for a particular 

7 article, material, or supply or that it would unreasonably increase the 

8 cost, an exception shall be noted in the specifications for that article, 

9 material, or supply and a public record of the findings that justified 

10 the exception shall be made. 

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 three years after 

21 the 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.—If the Secretary, after consulta29 tion with the United States Trade Representative, determines that a foreign 

30 country that is party to an agreement described in subsection (a) has vio31 lated the agreement by discriminating against certain types of products pro32 duced in the United States that are covered by the agreement, the Secretary 

33 shall rescind the Secretary’s blanket waiver of this chapter with respect to 

34 those types of products produced in that country. 

35 (c) REPORT.—The Secretary shall submit to Congress a report on the 

36 amount of Department of Defense purchases from foreign entities in fiscal 

37 year 2004. The report shall separately indicate the dollar value of items for 

38 which this chapter was waived pursuant to an agreement described in sub39 section (a), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), 

40 or an international agreement to which the United States is a party. 
173

•HR 4320 IH 

1 § 8305. Annual report 

2 Not later than 60 days after the end of each fiscal year, the Secretary 

3 of Defense shall submit to Congress a report on the amount of purchases 

4 by the Department of Defense from foreign entities in that fiscal year. The 

5 report shall separately indicate the dollar value of items for which this chap6 ter was waived pursuant to—

7 (1) a reciprocal defense procurement memorandum of understanding 

8 described in section 849(c)(2) of the National Defense Authorization 

9 Act for Fiscal Year 1994 (Public Law 103–160, 107 Stat. 1725); 

10 (2) the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.); or 

11 (3) an international agreement to which the United States is a party.

12 CHAPTER 85—COMMITTEE FOR PURCHASE FROM 

13 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.

14 § 8501. Definitions 

15 In this chapter—

16 (1) BLIND.—The term ‘‘blind’’ refers to an individual or class of in17 dividuals whose central visual acuity does not exceed 20/200 in the bet18 ter eye with correcting lenses or whose visual acuity, if better than 20/

19 200, is accompanied by a limit to the field of vision in the better eye 

20 to such a degree that its widest diameter subtends an angle of no 

21 greater than 20 degrees. 

22 (2) DIRECT LABOR.—The term ‘‘direct labor’’—

23 (A) includes all work required for preparation, processing, and 

24 packing of a commodity, or work directly relating to the perform25 ance of a service; but 

26 (B) does not include supervision, administration, inspection, or 

27 shipping. 

28 (3) ENTITY OF THE FEDERAL GOVERNMENT, FEDERAL GOVERN29 MENT, AND GOVERNMENT.—The terms ‘‘entity of the Federal Govern30 ment’’, ‘‘Federal Government’’, and ‘‘Government’’ include an entity of 

31 the legislative or judicial branch, a military department or executive 

32 agency (as defined in sections 102 and 105 of title 5), the United 

33 States Postal Service, and a nonappropriated fund instrumentality 

34 under the jurisdiction of the Armed Forces. 

35 (4) OTHER SEVERELY DISABLED.—The term ‘‘other severely dis36 abled’’ means an individual or class of individuals under a physical or 

37 mental disability, other than blindness, which (according to criteria es-
174

•HR 4320 IH 

1 tablished by the Committee for Purchase From People Who Are Blind 

2 or Severely Disabled after consultation with appropriate entities of the 

3 Federal Government and taking into account the views of non-Govern4 ment entities representing the disabled) constitutes a substantial handi5 cap to employment and is of a nature that prevents the individual from 

6 currently engaging in normal competitive employment. 

7 (5) PROCUREMENT LIST.—The term ‘‘procurement list’’ means a list 

8 of the commodities produced by any qualified nonprofit agency for the 

9 blind or by any qualified nonprofit agency for other severely disabled, 

10 and the services those agencies provide, that the Committee determines 

11 are suitable for the Government to procure pursuant to this chapter. 

12 (6) QUALIFIED NONPROFIT AGENCY FOR OTHER SEVERELY DIS13 ABLED.—The term ‘‘qualified nonprofit agency for other severely dis14 abled’’ means an agency— 

15 (A)(i) organized under the laws of the United States or a State; 

16 (ii) operated in the interest of severely disabled individuals who 

17 are not blind; and 

18 (iii) of which no part of the net income of the agency inures 

19 to the benefit of an individual; 

20 (B) that complies with any applicable occupational health and 

21 safety standard prescribed by the Secretary of Labor; and 

22 (C) that in the production of commodities and in the provision 

23 of services (whether or not the commodities or services are pro24 cured under this chapter) during the fiscal year employs blind or 

25 other severely disabled individuals for at least 75 percent of the 

26 hours of direct labor required for the production or provision of 

27 the commodities or services. 

28 (7) QUALIFIED NONPROFIT AGENCY FOR THE BLIND.—The term 

29 ‘‘qualified nonprofit agency for the blind’’ means an agency—

30 (A)(i) organized under the laws of the United States or a State; 

31 (ii) operated in the interest of blind individuals; and 

32 (iii) of which no part of the net income of the agency inures 

33 to the benefit of an individual; 

34 (B) that complies with any applicable occupational health and 

35 safety standard prescribed by the Secretary; and 

36 (C) that in the production of commodities and in the provision 

37 of services (whether or not the commodities or services are pro38 cured under this chapter) during the fiscal year employs blind in39 dividuals for at least 75 percent of the hours of direct labor re40 quired for the production or provision of the commodities or serv41 ices. 
175

•HR 4320 IH 

1 (8) SEVERELY DISABLED INDIVIDUAL.—The term ‘‘severely disabled 

2 individual’’ means an individual or class of individuals under a physical 

3 or mental disability, other than blindness, which (according to criteria 

4 established by the Committee after consultation with appropriate enti5 ties of the Government and taking into account the views of non-Gov6 ernment entities representing the disabled) constitutes a substantial 

7 handicap to employment and is of a nature that prevents the individual 

8 from currently engaging in normal competitive employment. 

9 (9) STATE.—The term ‘‘State’’ includes the District of Columbia, 

10 Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern 

11 Mariana Islands, the Marshall Islands, Palau, and the Federated 

12 States of Micronesia. 

13 § 8502. Committee for Purchase From People Who Are Blind 

14 or Severely Disabled 

15 (a) ESTABLISHMENT.—There is a Committee for Purchase From People 

16 Who Are Blind or Severely Disabled. 

17 (b) COMPOSITION.—The Committee consists of 15 members appointed by 

18 the President as follows: 

19 (1) One officer or employee from each of the following, nominated 

20 by the head of the department or agency: 

21 (A) The Department of Agriculture. 

22 (B) The Department of Defense. 

23 (C) The Department of the Army. 

24 (D) The Department of the Navy. 

25 (E) The Department of the Air Force. 

26 (F) The Department of Health and Human Services. 

27 (G) The Department of Commerce. 

28 (H) The Department of Veterans Affairs. 

29 (I) The Department of Justice. 

30 (J) The Department of Labor. 

31 (K) The General Services Administration. 

32 (2) One member from individuals who are not officers or employees 

33 of the Federal Government and who are conversant with the problems 

34 incident to the employment of the blind. 

35 (3) One member from individuals who are not officers or employees 

36 of the Government and who are conversant with the problems incident 

37 to the employment of other severely disabled individuals. 

38 (4) One member from individuals who are not officers or employees 

39 of the Government and who represent blind individuals employed in 

40 qualified nonprofit agencies for the blind. 
176

•HR 4320 IH 

1 (5) One member from individuals who are not officers or employees 

2 of the Government and who represent severely disabled individuals 

3 (other than blind individuals) employed in qualified nonprofit agencies 

4 for other severely disabled individuals. 

5 (c) TERMS OF OFFICE.—Members appointed under paragraph (2), (3), 

6 (4), or (5) of subsection (b) shall be appointed for terms of five years and 

7 may be reappointed if the member meets the qualifications prescribed by 

8 those paragraphs. 

9 (d) CHAIRMAN.—The members of the Committee shall elect one of the 

10 members to be Chairman. 

11 (e) VACANCY.— 

12 (1) MANNER IN WHICH FILLED.—A vacancy in the membership of 

13 the Committee shall be filled in the manner in which the original ap14 pointment was made. 

15 (2) UNFULFILLED TERM.—A member appointed under paragraph 

16 (2), (3), (4) or (5) of subsection (b) to fill a vacancy occurring prior 

17 to the expiration of the term for which the predecessor was appointed 

18 shall be appointed only for the remainder of the term. The member 

19 may serve after the expiration of a term until a successor takes office. 

20 (f) PAY AND TRAVEL EXPENSES.—

21 (1) AMOUNT TO WHICH MEMBERS ARE ENTITLED.—Except as pro22 vided in paragraph (2), members of the Committee are entitled to re23 ceive the daily equivalent of the maximum annual rate of basic pay 

24 payable under section 5376 of title 5 for each day (including travel 

25 time) during which they perform services for the Committee. A member 

26 is entitled to travel expenses, including a per diem allowance, instead 

27 of subsistence, as provided under section 5703 of title 5. 

28 (2) OFFICERS OR EMPLOYEES OF THE GOVERNMENT.—Members 

29 who are officers or employees of the Government may not receive addi30 tional pay because of their service on the Committee. 

31 (g) STAFF.— 

32 (1) APPOINTMENT AND COMPENSATION.—Subject to rules that the 

33 Committee may adopt and to chapters 33 and 51 and subchapter III 

34 of chapter 53 of title 5, the Chairman may appoint and fix the pay 

35 of personnel the Committee determines are necessary to assist it in car36 rying out this chapter. 

37 (2) PERSONNEL FROM OTHER ENTITIES.—On request of the Com38 mittee, the head of an entity of the Government may detail, on a reim39 bursable basis, any personnel of the entity to the Committee to assist 

40 it in carrying out this chapter. 
177

•HR 4320 IH 

1 (h) OBTAINING OFFICIAL INFORMATION.—The Committee may secure di2 rectly from an entity of the Government information necessary to enable it 

3 to carry out this chapter. On request of the Chairman, the head of the enti4 ty shall furnish the information to the Committee. 

5 (i) ADMINISTRATIVE SUPPORT SERVICES.—The Administrator of General 

6 Services shall provide to the Committee on a reimbursable basis administra7 tive support services that the Committee requests. 

8 (j) ANNUAL REPORT.—Not later than December 31 of each year, the 

9 Committee shall transmit to the President a report that includes the names 

10 of the Committee members serving in the prior fiscal year, the dates of 

11 Committee meetings in that year, a description of the activities of the Com12 mittee under this chapter in that year, and any recommendations for 

13 changes in this chapter which the Committee determines are necessary. 

14 § 8503. Duties and powers of the Committee 

15 (a) PROCUREMENT LIST.—The Committee for Purchase From People 

16 Who Are Blind or Severely Disabled shall maintain and publish in the Fed17 eral Register a procurement list. In accordance with the requirements of 

18 section 553(b)–(e) of title 5, the Committee by rule may add to, and remove 

19 from, the procurement list commodities produced and services provided. 

20 (b) FAIR MARKET PRICE.—The Committee shall determine the fair mar21 ket price of commodities and services contained on the procurement list that 

22 are offered for sale to the Government by a qualified nonprofit agency for 

23 the blind or a qualified nonprofit agency for other severely disabled. The 

24 Committee from time to time shall revise its price determinations with re25 spect to those commodities and services in accordance with changing market 

26 conditions. 

27 (c) CENTRAL NONPROFIT AGENCY.—The Committee shall designate a 

28 central nonprofit agency to facilitate the distribution, by direct allocation, 

29 subcontract, or any other means, of orders of the Government for commod30 ities and services on the procurement list among qualified nonprofit agencies 

31 for the blind or qualified nonprofit agencies for other severely disabled. 

32 (d) REGULATIONS.—The Committee—

33 (1) may prescribe regulations regarding specifications for commod34 ities and services on the procurement list, the time of their delivery, 

35 and other matters as necessary to carry out this chapter; and 

36 (2) shall prescribe regulations providing that when the Government 

37 purchases commodities produced and offered for sale by qualified non38 profit agencies for the blind or qualified nonprofit agencies for other 

39 severely disabled, priority shall be given to commodities produced and 

40 offered for sale by qualified nonprofit agencies for the blind. 
178

•HR 4320 IH 

1 (e) STUDY AND EVALUATION OF ACTIVITIES.—The Committee shall 

2 make a continuing study and evaluation of its activities under this chapter 

3 to ensure effective and efficient administration of this chapter. The Com4 mittee on its own or in cooperation with other public or nonprofit private 

5 agencies may study—

6 (1) problems related to the employment of the blind and other se7 verely disabled individuals; and 

8 (2) the development and adaptation of production methods that 

9 would enable a greater utilization of the blind and other severely dis10 abled individuals. 

11 § 8504. Procurement requirements for the Federal Govern12 ment 

13 (a) IN GENERAL.—An entity of the Federal Government intending to pro14 cure a commodity or service on the procurement list shall procure the com15 modity or service from a qualified nonprofit agency for the blind or a quali16 fied nonprofit agency for other severely disabled in accordance with regula17 tions of the Committee for Purchase From People Who Are Blind or Se18 verely Disabled and at the price the Committee establishes if the commodity 

19 or service is available within the period required by the entity. 

20 (b) EXCEPTION.—This section does not apply to the procurement of a 

21 commodity that is available from an industry established under chapter 307 

22 of title 18 and that is required under section 4124 of title 18 to be procured 

23 from that industry. 

24 § 8505. Audit 

25 For the purpose of audit and examination, the Comptroller General shall 

26 have access to the records of—

27 (1) the Committee for Purchase From People Who Are Blind or Se28 verely Disabled and of each central nonprofit agency the Committee 

29 designates under section 8503(c) of this title; and 

30 (2) qualified nonprofit agencies for the blind and qualified nonprofit 

31 agencies for other severely disabled that have sold commodities or serv32 ices under this chapter to the extent those records relate to the activi33 ties of the agency in a fiscal year in which a sale was made under this 

34 chapter. 

35 § 8506. Authorization of appropriations 

36 Necessary amounts may be appropriated to the Committee for Purchase 

37 From People Who Are Blind or Severely Disabled to carry out this chapter.

38 CHAPTER 87—KICKBACKS

Sec. 

8701. Definitions. 

8702. Prohibited conduct. 

8703. Contractor responsibilities. 

8704. Inspection authority. 
179

•HR 4320 IH 

8705. Administrative offsets. 

8706. Civil actions. 

8707. Criminal penalties.

1 § 8701. Definitions 

2 In this chapter—

3 (1) CONTRACTING AGENCY.—–The term ‘‘contracting agency’’, when 

4 used with respect to a prime contractor, means a department, agency, 

5 or establishment of the Federal Government that enters into a prime 

6 contract with a prime contractor. 

7 (2) KICKBACK.—The term ‘‘kickback’’ means any money, fee, com8 mission, credit, gift, gratuity, thing of value, or compensation of any 

9 kind that is provided to a prime contractor, prime contractor employee, 

10 subcontractor, or subcontractor employee to improperly obtain or re11 ward favorable treatment in connection with a prime contract or a sub12 contract relating to a prime contract. 

13 (3) PRIME CONTRACT.—The term ‘‘prime contract’’ means a con14 tract or contractual action entered into by the Government to obtain 

15 supplies, materials, equipment, or services of any kind. 

16 (4) PRIME CONTRACTOR.—The term ‘‘prime contractor’’ means a 

17 person that has entered into a prime contract with the Government. 

18 (5) PRIME CONTRACTOR EMPLOYEE.—The term ‘‘prime contractor 

19 employee’’ means an officer, partner, employee, or agent of a prime 

20 contractor. 

21 (6) SUBCONTRACT.—The term ‘‘subcontract’’ means a contract or 

22 contractual action entered into by a prime contractor or subcontractor 

23 to obtain supplies, materials, equipment, or services of any kind under 

24 a prime contract. 

25 (7) SUBCONTRACTOR.—The term ‘‘subcontractor’’— 

26 (A) means a person, other than the prime contractor, that offers 

27 to furnish or furnishes supplies, materials, equipment, or services 

28 under a prime contract or a subcontract entered into in connection 

29 with the prime contract; and 

30 (B) includes a person that offers to furnish or furnishes general 

31 supplies to the prime contractor or a higher tier subcontractor. 

32 (8) SUBCONTRACTOR EMPLOYEE.—The term ‘‘subcontractor em33 ployee’’ means an officer, partner, employee, or agent of a subcon34 tractor. 

35 § 8702. Prohibited conduct 

36 A person may not—

37 (1) provide, attempt to provide, or offer to provide a kickback; 

38 (2) solicit, accept, or attempt to accept a kickback; or 
180

•HR 4320 IH 

1 (3) include the amount of a kickback prohibited by clause (1) or (2) 

2 in the contract price—

3 (A) a subcontractor charges a prime contractor or a higher tier 

4 subcontractor; or 

5 (B) a prime contractor charges the Federal Government. 

6 § 8703. Contractor responsibilities 

7 (a) REQUIREMENTS INCLUDED IN CONTRACTS.—Each contracting agency 

8 shall include in each prime contract the agency awards a requirement that 

9 the prime contractor shall—

10 (1) have in place and follow reasonable procedures designed to pre11 vent and detect violations of section 8702 of this title in its own oper12 ations and direct business relationships; and 

13 (2) cooperate fully with a Federal Government agency investigating 

14 a violation of section 8702. 

15 (b) FULL COOPERATION REQUIRED.—Notwithstanding subsection (d), a 

16 prime contractor shall cooperate fully with a Government agency inves17 tigating a violation of section 8702 of this title. 

18 (c) REPORTING REQUIREMENT.— 

19 (1) IN GENERAL.—A prime contractor or subcontractor that has rea20 sonable grounds to believe that a violation of section 8702 of this title 

21 may have occurred shall promptly report the possible violation in writ22 ing to the inspector general of the contracting agency, the head of the

23 contracting agency if the agency does not have an inspector general, 

24 or the Attorney General. 

25 (2) SUPPLYING INFORMATION AS FAVORABLE EVIDENCE.—In an ad26 ministrative or contractual action to suspend or debar a person who is 

27 eligible to enter into contracts with the Government, evidence that the 

28 person has supplied information to the Government pursuant to para29 graph (1) is favorable evidence of the person’s responsibility for the 

30 purposes of Federal procurement laws and regulations. 

31 (d) INAPPLICABILITY TO CERTAIN PRIME CONTRACTS.—Subsection (a) 

32 does not apply to a prime contract—

33 (1) that is not greater than $100,000; or 

34 (2) for the acquisition of commercial items (as defined in section 103 

35 of this title). 

36 § 8704. Inspection authority 

37 (a) IN GENERAL.—To ascertain whether there has been a violation of sec38 tion 8702 of this title with respect to a prime contract, the Comptroller 

39 General and the inspector general of the contracting agency, or a represent40 ative of the contracting agency designated by the head of the agency if the 

41 agency does not have an inspector general, shall have access to and may 
181

•HR 4320 IH 

1 inspect the facilities and audit the records of a prime contractor or subcon2 tractor under a prime contract awarded by the agency. 

3 (b) EXCEPTION.—This section does not apply to a prime contract for the 

4 acquisition of commercial items (as defined in section 103 of this title). 

5 § 8705. Administrative offsets 

6 (a) DEFINITION.—In this section, the term ‘‘contracting officer’’ has the 

7 meaning given that term in chapter 69 of this title. 

8 (b) OFFSET AUTHORITY.—A contracting officer of a contracting agency 

9 may offset the amount of a kickback provided, accepted, or charged in viola10 tion of section 8702 of this title against amounts the Federal Government 

11 owes the prime contractor under the prime contract to which the kickback 

12 relates. 

13 (c) DUTIES OF PRIME CONTRACTOR.—

14 (1) WITHHOLDING AND PAYING OVER OR RETAINING AMOUNTS.—On 

15 direction of a contracting officer of a contracting agency with respect 

16 to a prime contract, the prime contractor shall withhold from amounts 

17 owed to a subcontractor under a subcontract of the prime contract the 

18 amount of a kickback which was or may be offset against the prime 

19 contractor under subsection (b). The contracting officer may order that 

20 amounts withheld—

21 (A) be paid over to the contracting agency; or 

22 (B) be retained by the prime contractor if the Government has 

23 already offset the amount against the prime contractor. 

24 (2) NOTICE.—The prime contractor shall notify the contracting offi25 cer when an amount is withheld and retained under paragraph (1)(B). 

26 (d) OFFSET, DIRECTION, OR ORDER IS CLAIM OF GOVERNMENT.—An 

27 offset under subsection (b) of this section or a direction or order of a con28 tracting officer under subsection (c) of this section is a claim by the Govern29 ment for the purposes of chapter 69 of this title. 

30 § 8706. Civil actions 

31 (a) AMOUNT.—The Federal Government in a civil action may recover 

32 from a person—

33 (1) that knowingly engages in conduct prohibited by section 8702 of 

34 this title a civil penalty equal to—

35 (A) twice the amount of each kickback involved in the violation; 

36 and 

37 (B) not more than $10,000 for each occurrence of prohibited 

38 conduct; and 

39 (2) whose employee, subcontractor or subcontractor employee violates 

40 section 8702 of this title by providing, accepting, or charging a kick41 back a civil penalty equal to the amount of that kickback. 
182

•HR 4320 IH 

1 (b) STATUTE OF LIMITATIONS.—A civil action under this section must be 

2 brought within 6 years after the later of the date on which—

3 (1) the prohibited conduct establishing the cause of action occurred; 

4 or 

5 (2) the Government first knew or should reasonably have known that 

6 the prohibited conduct had occurred. 

7 § 8707. Criminal penalties 

8 A person that knowingly and willfully engages in conduct prohibited by 

9 section 8702 of this title shall be fined under title 18, imprisoned for not 

10 more than 10 years, or both.

11 SEC. 2. CONFORMING AMENDMENT. 

12 Section 2410i(b)(1) of title 10, United States Code, is amended by strik13 ing ‘‘small purchase threshold’’ and substituting ‘‘simplified acquisition 

14 threshold’’.

15 SEC. 3. CONFORMING CROSS-REFERENCES. 

16 (a) TITLE 5.—Title 5, United States Code, is amended as follows: 

17 (1) In section 504(b)(1)(C)(ii)—

18 (A) strike ‘‘section 6 of the Contract Disputes Act of 1978 (41 

19 U.S.C. 605)’’ and substitute ‘‘section 6903 of title 41’’; and 

20 (B) strike ‘‘section 8 of that Act (41 U.S.C. 607)’’ and sub21 stitute ‘‘section 6905 of title 41’’. 

22 (2) In section 551(1)(H), strike ‘‘chapter 2 of title 41;’’. 

23 (3) In section 595(c)(10), strike ‘‘title III of the Federal Property 

24 and Administrative Services Act of 1949, as amended (41 U.S.C. 251–

25 260)’’ and substitute ‘‘part C of subtitle I of title 41’’. 

26 (4) In section 701(b)(1)(H), strike ‘‘chapter 2 of title 41;’’. 

27 (5) In section 3109(b)(3), strike ‘‘section 5’’ and substitute ‘‘section 

28 6101(b)–(d)’’. 

29 (6) In section 3374(c)(2), strike ‘‘section 27 of the Office of Federal 

30 Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’. 

31 (7) In section 3704(b)(2)(G), strike ‘‘section 27 of the Office of Fed32 eral Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’. 

33 (8) In section 4105, strike ‘‘section 5’’ and substitute ‘‘section 

34 6101(b)–(d)’’. 

35 (9) In section 5102(c)(30), strike ‘‘section 8 of the Contract Dis36 putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’. 

37 (10) In section 5372a—

38 (A) in subsection (a)(1), strike ‘‘section 8 of the Contract Dis39 putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’; and 

40 (B) in subsection (a)(2), strike ‘‘section 8 of the Contract Dis41 putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’. 
183

•HR 4320 IH 

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)–(d)’’. 

6 (13) In section 8714a(a), strike ‘‘section 5’’ and substitute ‘‘section 

7 6101(b)–(d)’’. 

8 (14) In section 8714b(a), strike ‘‘section 5’’ and substitute ‘‘section 

9 6101(b)–(d)’’. 

10 (15) In section 8714c(a), strike ‘‘section 5’’ and substitute ‘‘section 

11 6101(b)–(d)’’. 

12 (16) In section 8902(a), strike ‘‘section 5’’ and substitute ‘‘section 

13 6101(b)–(d)’’. 

14 (17) In section 9003—

15 (A) in subsection (a), strike ‘‘section 5’’ and substitute ‘‘section 

16 6101(b)–(d)’’; 

17 (B) in subsection (c)(3), before clause (A), strike ‘‘the Contract 

18 Disputes Act of 1978’’ and substitute ‘‘chapter 69 of title 41’’; 

19 (C) in subsection (c)(3)(A), strike ‘‘section 8(c) of such Act’’ 

20 and substitute ‘‘section 6905(c) of title 41’’; and

21 (D) in subsection (c)(3)(B), strike ‘‘section 10(a)(1) of such 

22 Act’’ and substitute ‘‘section 6904(b)(1) of title 41’’. 

23 (18) In section 9009, strike ‘‘section 26(f) of the Office of Federal 

24 Procurement Policy Act (41 U.S.C. 422(f))’’ and substitute ‘‘section 

25 1502(a) and (b) of title 41’’. 

26 (b) TITLE 10.—Title 10, United States Code, is amended as follows: 

27 (1) In section 133(c)(1), strike ‘‘section 16(3) of the Office of Fed28 eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute ‘‘sec29 tion 1702(c) of title 41’’. 

30 (2) In section 2013(a), strike ‘‘section 3709 of the Revised Statutes 

31 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

32 (3) In section 2194(b)(2), strike ‘‘title III of the Federal Property 

33 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

34 substitute ‘‘part C of subtitle I of title 41’’. 

35 (4) In section 2201—

36 (A) in subsection (b), strike ‘‘section 3732(a) of the Revised 

37 Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 6301(a) and 

38 (b)(1)–(3) of title 41’’; and 

39 (B) in subsection (c), strike ‘‘section 3732(a) of the Revised 

40 Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 6301(a) and 

41 (b)(1)–(3) of title 41’’. 
184

•HR 4320 IH 

1 (5) In section 2207(b), strike ‘‘section 4(11) of the Office of Federal 

2 Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute ‘‘section 

3 133 of title 41’’. 

4 (6) In section 2225(f)—

5 (A) in clause (1), strike ‘‘section 16(3) of the Office of Federal 

6 Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute ‘‘sec7 tion 1702(c) of title 41’’; and 

8 (B) in clause (2), strike ‘‘section 4(11) of the Office of Federal 

9 Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute ‘‘sec10 tion 133 of title 41’’. 

11 (7) In section 2226(b), strike ‘‘section 4(12) of the Office of Federal 

12 Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute ‘‘section 

13 103 of title 41’’. 

14 (8) In section 2302—

15 (A) in clause (3), strike ‘‘section 4 of the Office of Federal Pro16 curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘chapter 1 

17 of title 41’’; 

18 (B) In clause (6), strike ‘‘section 25(c)(1) of the Office of Fed19 eral Procurement Policy Act (41 U.S.C. 421(c)(1))’’ and sub20 stitute ‘‘section 1302(a)(1) of title 41’’; and 

21 (C) In clause (7), strike ‘‘section 4 of the Office of Federal Pro22 curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 133 

23 of title 41’’. 

24 (9) In section 2302a—

25 (A) in subsection (a), strike ‘‘section 4(11) of the Office of Fed26 eral Procurement Policy Act’’ and substitute ‘‘section 133 of title 

27 41’’; and 

28 (B) In subsection (b), strike ‘‘section 33 of the Office of Federal 

29 Procurement Policy Act’’ and substitute ‘‘section 1905 of title 

30 41’’. 

31 (10) In section 2302b, strike ‘‘section 31 of the Office of Federal 

32 Procurement Policy Act’’ and substitute ‘‘section 1901 of title 41’’. 

33 (11) In section 2302c—

34 (A) in subsection (a)(1), strike ‘‘section 30 of the Office of Fed35 eral Procurement Policy Act (41 U.S.C. 426)’’ and substitute 

36 ‘‘section 2301 of title 41’’; and 

37 (B) In subsection (b), strike ‘‘section 16(3) of the Office of Fed38 eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute 

39 ‘‘section 1702(c) of title 41’’. 

40 (12) In section 2304—
185

•HR 4320 IH 

1 (A) in subsection (f)(1)(B)(iii), strike ‘‘section 16(3) of the Of2 fice of Federal Procurement Policy Act (41 U.S.C. 414(3))’’ and 

3 substitute ‘‘section 1702(c) of title 41’’; 

4 (B) in subsection (f)(1)(C), strike ‘‘section 18 of the Office of 

5 Federal Procurement Policy Act (41 U.S.C. 416)’’ and substitute 

6 ‘‘section 1707 of title 41’’; 

7 (C) in subsection (f)(2)(D), strike ‘‘the Javits-Wagner-O’Day 

8 Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title 

9 41’’; 

10 (D) in subsection (g)(4), strike ‘‘section 31(f) of the Office of 

11 Federal Procurement Policy Act (41 U.S.C. 427)’’ and substitute 

12 ‘‘section 1901(f) of title 41’’; and 

13 (E) in subsection (h)(1), strike ‘‘The Walsh-Healey Act (41 

14 U.S.C. 35 et seq.)’’ and substitute ‘‘Chapter 65 of title 41’’. 

15 (13) In section 2304b—

16 (A) in subsection (c), strike ‘‘section 18 of the Office of Federal 

17 Procurement Policy Act (41 U.S.C. 416)’’ and substitute ‘‘section 

18 1707 of title 41’’; and 

19 (B) in subsection (f)(3), strike ‘‘section 18 of the Office of Fed20 eral Procurement Policy Act (41 U.S.C. 416)’’ and substitute 

21 ‘‘section 1707 of title 41’’. 

22 (14) In section 2304c(a)(1), strike ‘‘section 18 of the Office of Fed23 eral Procurement Policy Act (41 U.S.C. 416)’’ and substitute ‘‘section 

24 1707 of title 41’’. 

25 (15) In section 2306a(h)(3), strike ‘‘section 4(12) of the Office of 

26 Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute 

27 ‘‘section 103 of title 41’’. 

28 (16) In section 2314, strike ‘‘Sections 3709 and 3735 of the Revised 

29 Statutes (41 U.S.C. 5 and 13)’’ and substitute ‘‘Sections 6101(b)–(d) 

30 and 6304 of title 41’’. 

31 (17) In section 2318—

32 (A) in subsection (a)(1), strike ‘‘section 20(a) of the Office of 

33 Federal Procurement Policy Act (41 U.S.C. 418(a))’’ and sub34 stitute ‘‘section 1704(a) of title 41’’; and 

35 (B) in subsection (a)(2), strike ‘‘sections 20(b) and 20(c) of the 

36 Office of Federal Procurement Policy Act (41 U.S.C. 418(b), (c))’’ 

37 and substitute ‘‘section 1704(b) and (c) of title 41’’. 

38 (18) In section 2321(h), strike ‘‘the Contract Disputes Act of 1978 

39 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’. 

40 (19) In section 2324—
186

•HR 4320 IH 

1 (A) in subsection (d)(1), strike ‘‘section 6 of the Contract Dis2 putes Act of 1978 (41 U.S.C. 605)’’ and substitute ‘‘section 6903 

3 of title 41’’; 

4 (B) in subsection (d)(2), strike ‘‘section 7 of such Act (41 

5 U.S.C. 606)’’ and substitute ‘‘section 6904(a) of title 41’’; 

6 (C) in subsection (e)(1)(P), strike ‘‘section 39 of the Office of 

7 Federal Procurement Policy Act (41 U.S.C. 435)’’ and substitute 

8 ‘‘section 1127 of title 41’’; and 

9 (D) in subsection (e)(2)(C), strike ‘‘(41 U.S.C. 10b–1)’’ and 

10 substitute ‘‘(as added by section 7002(2) of the Omnibus Trade 

11 and Competitiveness Act of 1988)’’. 

12 (20) In section 2343, strike ‘‘section 3741 of the Revised Statutes 

13 (41 U.S.C. 22)’’ and substitute ‘‘section 6306 of title 41’’. 

14 (21) In section 2375(b), strike ‘‘section 34 of the Office of Federal 

15 Procurement Policy Act (41 U.S.C. 430)’’ and substitute ‘‘section 1906 

16 of title 41’’. 

17 (22) In section 2376(1), strike ‘‘section 4 of the Office of Federal 

18 Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘chapter 1 

19 of title 41’’. 

20 (23) In section 2384—

21 (A) in subsection (b)(2), strike ‘‘section 4(12) of the Office of 

22 Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and sub23 stitute ‘‘section 103 of title 41)’’; and 

24 (B) in subsection (b)(3), strike ‘‘section 4(11) of the Office of 

25 Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and sub26 stitute ‘‘section 133 of title 41)’’. 

27 (24) In section 2393(d)—

28 (A) strike ‘‘section 4(11) of the Office of Federal Procurement 

29 Policy Act (41 U.S.C. 403(11)))’’ and substitute ‘‘section 133 of 

30 title 41)’’; and 

31 (B) strike ‘‘section 4(12) of the Office of Federal Procurement 

32 Policy Act (41 U.S.C. 403(12)))’’ and substitute ‘‘section 103 of 

33 title 41)’’. 

34 (25) In section 2402—

35 (A) in subsection (c), strike ‘‘section 4(11) of the Office of Fed36 eral Procurement Policy Act (41 U.S.C. 403(11)))’’ and substitute 

37 ‘‘section 133 of title 41)’’; and 

38 (B) in subsection (d)(2), strike ‘‘section 4(12) of the Office of 

39 Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and sub40 stitute ‘‘section 103 of title 41’’. 

41 (26) In section 2408—
187

•HR 4320 IH 

1 (A) in subsection (a)(4)(A), strike ‘‘section 4(11) of the Office 

2 of Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and 

3 substitute ‘‘section 133 of title 41)’’; and 

4 (B) in subsection (a)(4)(B), strike ‘‘section 4(12) of the Office 

5 of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and 

6 substitute ‘‘section 103 of title 41)’’. 

7 (27) In section 2410(c), strike ‘‘section 4(11) of the Office of Fed8 eral Procurement Policy Act’’ and substitute ‘‘section 133 of title 41’’. 

9 (28) In section 2410b(c), strike ‘‘section 4(12) of the Office of Fed10 eral Procurement Policy Act (41 U.S.C. 403(12)))’’ and substitute 

11 ‘‘section 103 of title 41)’’. 

12 (29) In section 2410d—

13 (A) in subsection (b)(2)(A), strike ‘‘section 5(3) of the Javits14 Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute ‘‘section 

15 8501(7) of title 41’’; 

16 (B) in subsection (b)(2)(B), strike ‘‘handicapped, as defined in 

17 section 5(4) of such Act (41 U.S.C. 48b(4))’’ and substitute ‘‘dis18 abled, as defined in section 8501(6) of title 41’’; and 

19 (C) in subsection (b)(2)(C), strike ‘‘section 2(c) of such Act (41 

20 U.S.C. 47(c))’’ and substitute ‘‘section 8503(c) of title 41’’. 

21 (30) In section 2410g(d)(1), strike ‘‘section 4(12) of the Office of 

22 Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and substitute 

23 ‘‘section 103 of title 41)’’. 

24 (31) In section 2410i(b)(1), strike ‘‘section 4(11) of the Office of 

25 Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and substitute 

26 ‘‘section 133 of title 41)’’. 

27 (32) In section 2410m—

28 (A) in subsection (a), before clause (1), strike ‘‘the Contract 

29 Disputes Act of 1978 (41 U.S.C. 601 et seq.)’’ and substitute 

30 ‘‘chapter 69 of title 41’’; 

31 (B) in subsection (a)(2), strike ‘‘section 7 of such Act (41 

32 U.S.C. 606)’’ and substitute ‘‘section 6904(a) of title 41’’; and 

33 (C) in subsection (b)(1)(A), strike ‘‘section 10(a) of the Con34 tract Disputes Act of 1978 (41 U.S.C. 609(a))’’ and substitute 

35 ‘‘section 6904(b) of title 41’’. 

36 (33) In section 2457(e), strike ‘‘section 2 of the Buy American Act 

37 (41 U.S.C. 10a)’’ and substitute ‘‘section 8302 of title 41’’. 

38 (34) In section 2461(e)(1), strike ‘‘section 2 of the Javits-Wagner39 O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 8503 of title 41’’. 
188

•HR 4320 IH 

1 (35) In section 2482(b)(1), strike ‘‘section 4(6) of the Office of Fed2 eral Procurement Policy Act (41 U.S.C. 403(6))’’ and substitute ‘‘sec3 tion 106 of title 41’’. 

4 (36) In the chapter analysis for subchapter V of chapter 148, in the 

5 item for section 2533, strike ‘‘the Buy American Act’’ and substitute 

6 ‘‘chapter 83 of title 41’’. 

7 (37) In section 2533—

8 (A) in the section heading, strike ‘‘the Buy American Act’’ and 

9 substitute ‘‘chapter 83 of title 41’’; and 

10 (B) strike ‘‘section 2 of the Buy American Act (41 U.S.C. 

11 10a)’’ and substitute ‘‘section 8302 of title 41’’. 

12 (38) In section 2533a(i), strike ‘‘section 34 of the Office of Federal 

13 Procurement Policy Act (41 U.S.C. 430)’’ and substitute ‘‘section 1906 

14 of title 41’’. 

15 (39) In section 2534(g)(2), strike ‘‘section 33 of the Office of Fed16 eral Procurement Policy Act (41 U.S.C. 429)’’ and substitute ‘‘section 

17 1905 of title 41’’. 

18 (40) In section 2562(a)(1), strike ‘‘title III of the Federal Property 

19 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

20 substitute ‘‘part C of subtitle I of title 41’’. 

21 (41) In section 2576(a), strike ‘‘title III of the Federal Property and 

22 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub23 stitute ‘‘part C of subtitle I of title 41’’. 

24 (42) In section 2636(b)(3), strike ‘‘section 4(11) of the Office of 

25 Federal Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute 

26 ‘‘section 133 of title 41’’. 

27 (43) In section 2667(f)(1), strike ‘‘Notwithstanding subsection (a)(3) 

28 or subtitle I of title 40 and title III of the Federal Property and Ad29 ministrative Services Act of 1949 (to the extent subtitle I and title III 

30 are inconsistent with this subsection)’’ and substitute ‘‘Notwithstanding 

31 subtitle I of title 40 and part C of subtitle I of title 41 (to the extent 

32 those provisions are inconsistent with this subsection) or subsection 

33 (a)(2) of this section’’. 

34 (44) In section 2676(a), strike ‘‘title III of the Federal Property and 

35 Administrative Services Act of 1949, as amended (41 U.S.C. 251 et 

36 seq.)’’ and substitute ‘‘part C of subtitle I of title 41’’. 

37 (45) In section 2691(b), 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’’. 
189

•HR 4320 IH 

1 (46) In section 2696(a), 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 (47) In section 2701(i)(1), in the catchline, strike ‘‘MILLER ACT’’ 

5 and substitute ‘‘SECTIONS 3131 AND 3133 OF TITLE 40’’. 

6 (48) In section 2836(g), strike ‘‘the Contract Disputes Act of 1978 

7 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’. 

8 (49) In section 2854a(d)(1), strike ‘‘title III of the Federal Property 

9 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

10 substitute ‘‘part C of subtitle I of title 41’’. 

11 (50) In section 2878(d)(2), strike ‘‘title III of the Federal Property 

12 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

13 substitute ‘‘part C of subtitle I of title 41’’. 

14 (51) In the chapter analysis for chapter 633, in the item for section 

15 7299, strike ‘‘Walsh-Healey Act’’ and substitute ‘‘chapter 65 of title 

16 41’’. 

17 (52) In section 7299—

18 (A) in the section heading, strike ‘‘Walsh-Healey Act’’ and sub19 stitute ‘‘chapter 65 of title 41’’; and 

20 (B) strike ‘‘the Walsh-Healey Act (41 U.S.C. 35 et seq.)’’ and 

21 substitute ‘‘chapter 65 of title 41’’. 

22 (53) In section 7305(d)—

23 (A) strike ‘‘title III of the Federal Property and Administrative 

24 Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and substitute 

25 ‘‘part C of subtitle I of title 41’’; and 

26 (B) strike ‘‘under subtitle I of title 40 and such title III’’ and 

27 substitute ‘‘under those provisions’’. 

28 (54) In section 9444(b)(1), strike ‘‘title III of the Federal Property 

29 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

30 substitute ‘‘part C of subtitle I of title 41’’. 

31 (55) In section 9781(g), 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 (c) TITLE 14.—Title 14, United States Code, is amended as follows: 

35 (1) In section 92(d), strike ‘‘title III of the Federal Property and 

36 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub37 stitute ‘‘part C of subtitle I of title 41’’. 

38 (2) In section 93(h), strike ‘‘title III of the Federal Property and 

39 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub40 stitute ‘‘part C of subtitle I of title 41’’. 
190

•HR 4320 IH 

1 (3) In section 641(a), 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 (4) In section 685(c)(1), 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 (d) TITLE 18.—Title 18, United States Code, is amended as follows: 

8 (1) In section 3672, strike ‘‘section 3709 of the Revised Statutes of 

9 the United States’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

10 (2) In section 4124(c), strike ‘‘section 6(d)(4) of the Office of Fed11 eral Procurement Policy Act’’ and substitute ‘‘section 1122(a)(4) of 

12 title 41’’. 

13 (e) TITLE 23.—Title 23, United States Code, is amended as follows: 

14 (1) In section 107(a), strike ‘‘the Act of February 26, 1931, 46 Stat. 

15 1421’’ and substitute ‘‘sections 3114–3116 and 3118 of title 40’’. 

16 (2) In section 140—

17 (A) in subsection (b), strike ‘‘section 3709 of the Revised Stat18 utes, as amended (41 U.S.C. 5),’’ and substitute ‘‘section 

19 6101(b)–(d) of title 41’’; and 

20 (B) in subsection (c)—

21 (i) strike ‘‘section 3709 of the Revised Statutes, as amend22 ed (41 U.S.C. 5),’’ and substitute ‘‘section 6101(b)–(d) of 

23 title 41’’; and 

24 (ii) strike ‘‘section 302(e) of the Federal Property and Ad25 ministrative Services Act of 1949 (41 U.S.C. 252(e))’’ and 

26 substitute ‘‘section 3107 of title 41’’. 

27 (3) In section 210(e), strike ‘‘the Act of February 26, 1931; 46 Stat. 

28 1421’’ and substitute ‘‘sections 3114–3116 and 3118 of title 40’’. 

29 (4) In section 502(b)(5), strike ‘‘Section 3709 of the Revised Stat30 utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 

31 (f) THE INTERNAL REVENUE CODE OF 1986.—Section 7608(c)(1) of the 

32 Internal Revenue Code of 1986 (26 U.S.C. 7608(c)(1)) is amended—

33 (1) in clause (A)(i)(II), by striking ‘‘sections 11(a) and 22’’ and sub34 stituting ‘‘sections 6301(a) and (b)(1)–(3) and 6306’’; 

35 (2) in clause (A)(i)(III), by striking ‘‘section 255’’ and substituting 

36 ‘‘chapter 45’’; and 

37 (3) in clause (A)(i)(V), by striking ‘‘section 254(a) and (c)’’ and sub38 stituting ‘‘section 3901’’. 

39 (g) TITLE 28.—Title 28, United States Code, is amended as follows: 

40 (1) In the last sentence of section 524(c)(1), strike ‘‘section 3709 

41 of the Revised Statutes of the United States (41 U.S.C. 5), title III 
191

•HR 4320 IH 

1 of the Federal Property and Administrative Services Act of 1949 (41 

2 U.S.C. 251 and following),’’ and substitute ‘‘part C of subtitle I and 

3 section 6101(b)–(d) of title 41’’. 

4 (2) In section 604(a)(10)(C), strike ‘‘section 3709 of the Revised 

5 Statutes of the United States (41 U.S.C. 5)’’ and substitute ‘‘section 

6 6101(b)–(d) of title 41’’. 

7 (3) In section 624(3), strike ‘‘section 3709 of the Revised Statutes, 

8 as amended (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 

9 41’’. 

10 (4) In section 753(g), strike ‘‘section 3709 of the Revised Statutes 

11 of the United States, as amended (41 U.S.C. 5)’’ and substitute ‘‘sec12 tion 6101(b)–(d) of title 41’’. 

13 (5) In section 1295—

14 (A) in subsection (a)(10), strike ‘‘section 8(g)(1) of the Con15 tract Disputes Act of 1978 (41 U.S.C. 607(g)(1))’’ and substitute 

16 ‘‘section 6907(a)(1) of title 41’’; 

17 (B) in subsection (b), strike ‘‘section 10(b) of the Contract Dis18 putes Act of 1978 (41 U.S.C. 609(b))’’ and substitute ‘‘section 

19 6907(b) of title 41’’; and 

20 (C) in subsection (c), strike ‘‘section 10(b) of the Contract Dis21 putes Act of 1978’’ and substitute ‘‘section 6907(b) of title 41’’. 

22 (6) In section 1346(a)(2), strike ‘‘sections 8(g)(1) and 10(a)(1) of 

23 the Contract Disputes Act of 1978’’ and substitute ‘‘sections 

24 6904(b)(1) and 6907(a)(1) of title 41’’. 

25 (7) In the chapter analysis for chapter 91, in item 1499, strike 

26 ‘‘Contract Work Hours and Safety Standards Act’’ and substitute 

27 ‘‘chapter 37 of title 40’’. 

28 (8) In section 1491(a)(2), strike ‘‘section 10(a)(1) of the Contract 

29 Disputes Act of 1978’’ and substitute ‘‘section 6904(b)(1) of title 41’’. 

30 (9) In section 1499, in the section heading, strike ‘‘Contract 

31 Work Hours and Safety Standards Act’’ and substitute 

32 ‘‘chapter 37 of title 40’’. 

33 (10) In section 2401(a), strike ‘‘the Contract Disputes Act of 1978’’ 

34 and substitute ‘‘chapter 69 of title 41’’. 

35 (11) In section 2412—

36 (A) in subsection (d)(2)(E), strike ‘‘the Contract Disputes Act 

37 of 1978’’ and substitute ‘‘chapter 69 of title 41’’; and 

38 (B) in subsection (d)(3), strike ‘‘the Contract Disputes Act of 

39 1978’’ and substitute ‘‘chapter 69 of title 41’’. 

40 (12) In section 2414, strike ‘‘the Contract Disputes Act of 1978’’ 

41 and substitute ‘‘chapter 69 of title 41’’. 
192

•HR 4320 IH 

1 (13) In section 2517(a), strike ‘‘the Contract Disputes Act of 1978’’ 

2 and substitute ‘‘chapter 69 of title 41’’. 

3 (h) TITLE 31.—Title 31, United States Code, is amended as follows: 

4 (1) In section 506, strike ‘‘section 5(a) of the Office of Federal Pro5 curement Policy Act (41 U.S.C. 404(a))’’ and substitute ‘‘section 

6 1101(a) of title 41’’. 

7 (2) In section 781(c)(1), strike ‘‘section 3709 of the Revised Stat8 utes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

9 (3) In section 1344(g)(2)(A), strike ‘‘(41 U.S.C. 5a)’’ and substitute 

10 ‘‘(ch. 744, 60 Stat. 811)’’. 

11 (4) In section 3567, strike ‘‘section 4(1) of the Office of Federal 

12 Procurement Policy Act (41 U.S.C. 403(1))’’ and substitute ‘‘section 

13 132 of title 41’’. 

14 (5) In section 3718(b)(1)(A), strike ‘‘title III of the Federal Prop15 erty and Administrative Services Act of 1949 (41 U.S.C. 251 and fol16 lowing)’’ and substitute ‘‘part C of subtitle I of title 41’’. 

17 (6) In section 3902(a), strike ‘‘section 12 of the Contract Disputes 

18 Act of 1978 (41 U.S.C. 611)’’ and substitute ‘‘section 6909(a)(1) and 

19 (b) of title 41’’. 

20 (7) In section 3907—

21 (A) in subsection (a), strike ‘‘section 6 of the Contract Disputes 

22 Act of 1978 (41 U.S.C. 605)’’ and substitute ‘‘section 6903 of 

23 title 41’’; 

24 (B) in subsection (b)(1)(A), strike ‘‘the Contract Disputes Act 

25 of 1978 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of 

26 title 41’’; 

27 (C) in subsection (b)(2)—

28 (i) strike ‘‘section 12 of the Contract Disputes Act of 1978 

29 (41 U.S.C. 611)’’ and substitute ‘‘section 6909(a)(1) and (b) 

30 of title 41’’; and 

31 (ii) strike ‘‘section 12’’ and substitute ‘‘section 6909(a)(1) 

32 and (b)’’; and 

33 (D) in subsection (c), strike ‘‘the Contract Disputes Act of 1978 

34 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’. 

35 (8) In section 6202(c)(2), strike ‘‘section 6(d)(5) of the Office of 

36 Federal Procurement Policy Act (41 U.S.C. 405(d)(5))’’ and substitute 

37 ‘‘section 1122(a)(5) of title 41’’. 

38 (9) In section 9703(b)(3), as added by section 638(b)(1) of the Act 

39 of October 6, 1992 (Public Law 102–393, 106 Stat. 1779), strike ‘‘sec40 tion 3709 of the Revised Statutes of the United States (41 U.S.C. 5), 

41 title III of the Federal Property and Administrative Services Act of 
193

•HR 4320 IH 

1 1949 (41 U.S.C. 251 et seq.),’’ and substitute ‘‘part C of subtitle I 

2 and section 6101(b)–(d) of title 41’’. 

3 (i) TITLE 35.—Title 35, United States Code, is amended as follows: 

4 (1) In section 2(b)(4)(A), strike ‘‘title III of the Federal Property 

5 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

6 substitute ‘‘part C of subtitle I of title 41’’. 

7 (2) In section 203(b), strike ‘‘the Contract Disputes Act (41 U.S.C. 

8 § 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’. 

9 (j) TITLE 38.—Title 38, United States Code, is amended as follows: 

10 (1) In section 1720(c)(2), strike ‘‘section 2(b)(1) of the Service Con11 tract Act of 1965 (41 U.S.C. 351(b)(1))’’ and substitute ‘‘section 

12 6704(a) of title 41’’. 

13 (2) In section 1966(a), strike ‘‘section 3709 of the Revised Statutes, 

14 as amended (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 

15 41’’. 

16 (3) In section 3720(b), strike ‘‘title III of the Federal Property and 

17 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub18 stitute ‘‘part C of subtitle I of title 41’’. 

19 (4) In section 7317(f), strike ‘‘section 3709 of the Revised Statutes 

20 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

21 (5) In section 7802(f), strike ‘‘section 3709 of the Revised Statutes 

22 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

23 (6) In section 8122—

24 (A) in subsection (a)(1), strike ‘‘section 3709 of the Revised 

25 Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of 

26 title 41’’; and 

27 (B) in subsection (c)—

28 (i) strike ‘‘(41 U.S.C. 252(c))’’; and 

29 (ii) strike ‘‘section 304 of that Act (41 U.S.C. 254)’’ and 

30 substitute ‘‘sections 3901 and 3905 of title 41’’. 

31 (7) In section 8153(a)—

32 (A) in paragraph (3)(B)(ii), strike ‘‘section 22 of the Office of 

33 Federal Procurement Policy Act (41 U.S.C. 418b)’’ and substitute 

34 ‘‘section 1706 of title 41’’; and 

35 (B) in paragraph (3)(D), strike ‘‘section 303(f) of the Federal 

36 Property and Administrative Services Act of 1949 (41 U.S.C. 

37 253(f))’’ and substitute ‘‘section 3303(d) of title 41’’. 

38 (8) In section 8201(e), strike ‘‘section 3709 of the Revised Statutes 

39 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

40 (k) TITLE 39.—Section 410(b) of title 39, United States Code, is amend41 ed by striking clause (5) and substituting—
194

•HR 4320 IH 

1 ‘‘(5) chapters 65 and 67 of title 41;’’. 

2 (l) TITLE 40.—Title 40, United States Code, is amended as follows: 

3 (1) In the chapter analysis for chapter 1, in item 111, strike ‘‘Fed4 eral Property and Administrative Services Act of 1949’’ and substitute 

5 ‘‘part C of subtitle I of title 41’’. 

6 (2) In section 102, before clause (1), strike ‘‘title III of the Federal 

7 Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 

8 seq.)’’ and substitute ‘‘part C of subtitle I of title 41’’. 

9 (3) In section 111—

10 (A) in the section heading, strike ‘‘Federal Property and 

11 Administrative Services Act of 1949’’ and substitute 

12 ‘‘part C of subtitle I of title 41’’; and 

13 (B) before clause (1), 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 (4) In section 113(b)—

17 (A) in the catchline, strike ‘‘THE OFFICE OF FEDERAL PRO18 CUREMENT POLICY ACT’’ and substitute ‘‘PART B OF SUBTITLE

19 I OF TITLE 41’’; and 

20 (B) strike ‘‘the Office of Federal Procurement Policy Act (41 

21 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of subtitle I of title 

22 41’’. 

23 (5) In section 311—

24 (A) in subsection (a), strike ‘‘title III of the Federal Property 

25 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 

26 and substitute ‘‘part C of subtitle I of title 41’’; and 

27 (B) in subsection (b), strike ‘‘title III of the Federal Property 

28 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 

29 and substitute ‘‘part C of subtitle I of title 41’’. 

30 (6) In section 501(b)(2)(B), strike ‘‘the Office of Federal Procure31 ment Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of 

32 subtitle I of title 41’’. 

33 (7) In section 502—

34 (A) in subsection (b)(1)(A)(i), strike ‘‘section 5(3) of the Javits35 Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute ‘‘section 

36 8501(7) of title 41’’; 

37 (B) in subsection (b)(1)(A)(ii), strike ‘‘handicapped (as defined 

38 in section 5(4) of the Javits-Wagner-O’Day Act (41 U.S.C. 

39 48b(4)))’’ and substitute ‘‘disabled (as defined in section 8501(6) 

40 of title 41)’’; 
195

•HR 4320 IH 

1 (C) in subsection (b)(1)(B), strike ‘‘the Javits-Wagner-O’Day 

2 Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title 

3 41’’; and 

4 (D) in subsection (b)(2), strike ‘‘section 2 of the Javits-Wagner5 O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 8503 of title 

6 41’’. 

7 (8) In section 503(b)—

8 (A) in paragraph (1), strike ‘‘the Office of Federal Procurement 

9 Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of sub10 title I of title 41’’; and 

11 (B) in paragraph (3)—

12 (i) in the catchline, strike ‘‘SECTION 3709 OF REVISED

13 STATUTES’’ and substitute ‘‘SECTION 6101(b)–(d) OF TITLE

14 41’’; and 

15 (ii) strike ‘‘Section 3709 of the Revised Statutes (41 

16 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 

17 (9) In section 506(a)(1)(D), strike ‘‘the Office of Federal Procure18 ment Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of 

19 subtitle I of title 41’’.

20 (10) In section 545(f), strike ‘‘Section 3709 of the Revised Statutes 

21 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 

22 (11) In section 593(a)(2), strike ‘‘the Javits-Wagner-O’Day Act (41 

23 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title 41’’. 

24 (12) In section 1305, strike ‘‘title III of the Federal Property and 

25 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub26 stitute ‘‘part C of subtitle I of title 41’’. 

27 (13) In section 1308, strike ‘‘title III of the Federal Property and 

28 Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub29 stitute ‘‘part C of subtitle I of title 41’’. 

30 (14) In section 3148, strike ‘‘section 3709 of the Revised Statutes 

31 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

32 (15) In section 3304(d)(2), strike ‘‘title III of the Federal Property 

33 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

34 substitute ‘‘part C of subtitle I of title 41’’. 

35 (16) In section 3305(a)—

36 (A) in paragraph (1), strike ‘‘title III of the Federal Property 

37 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 

38 and substitute ‘‘part C of subtitle I of title 41’’; and 

39 (B) in paragraph (2), 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’’. 
196

•HR 4320 IH 

1 (17) In section 3308(a), strike ‘‘section 3709 of the Revised Statutes 

2 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

3 (18) In section 3310(2), strike ‘‘section 303 of the Federal Property 

4 and Administrative Services Act of 1949 (41 U.S.C. 253)’’ and sub5 stitute ‘‘sections 3106 and 3301–3304 of title 41’’. 

6 (19) In section 3701(b)(3)(A)(ii), strike ‘‘the Walsh-Healey Act (41 

7 U.S.C. 35 et seq.)’’ and substitute ‘‘chapter 65 of title 41’’. 

8 (20) In section 3704(b)(1), strike ‘‘sections 4 and 5 of the Walsh9 Healey Act (41 U.S.C. 38, 39)’’ and substitute ‘‘sections 6507 and 

10 6508 of title 41’’. 

11 (21) In section 3707, strike ‘‘section 4 of the Office of Federal Pro12 curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 103 of 

13 title 41’’. 

14 (22) In section 6111(b)(2)(D), strike ‘‘section 3709 of the Revised 

15 Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 

16 41’’. 

17 (23) In section 8711(d), strike ‘‘section 3709 of the Revised Statutes 

18 (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 

19 (24) In section 11101—

20 (A) in clause (1), strike ‘‘section 4 of the Office of Federal Pro21 curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 103 

22 of title 41’’; and 

23 (B) in clause (2), strike ‘‘section 4 of the Act (41 U.S.C. 403)’’ 

24 and substitute ‘‘section 132 of title 41’’. 

25 (m) TITLE 44.—Title 44, United States Code, is amended as follows: 

26 (1) In the chapter analysis for chapter 3, in the item for section 311, 

27 strike ‘‘the Federal Property and Administrative Services Act’’ and 

28 substitute ‘‘subtitle I of title 40 and part C of subtitle I of title 41’’. 

29 (2) In section 311—

30 (A) in the section heading, strike ‘‘the Federal Property and 

31 Administrative Services Act’’ and substitute ‘‘subtitle I of title 40 

32 and part C of subtitle I of title 41; 

33 (B) in subsection (a), strike ‘‘title III of the Federal Property 

34 and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 

35 and substitute ‘‘part C of subtitle I of title 41’’; and 

36 (C) in subsection (c), strike ‘‘section 3709 of the Revised Stat37 utes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 

38 41’’. 

39 (n) TITLE 49.—Title 49, United States Code, is amended as follows: 
197

•HR 4320 IH 

1 (1) In section 103(e), 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 1113(b)(1)(B) strike ‘‘section 3709 of the Revised 

5 Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 

6 41’’. 

7 (3) In section 5334(j)(2), strike ‘‘Section 3709 of the Revised Stat8 utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 

9 (4) In section 10721, strike ‘‘Section 3709 of the Revised Statutes 

10 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 

11 (5) In section 13712, strike ‘‘Section 3709 of the Revised Statutes 

12 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 

13 (6) In section 15504, strike ‘‘Section 3709 of the Revised Statutes 

14 (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 

15 (7) In section 40110—

16 (A) in subsection (d)(2)(A), strike ‘‘Title III of the Federal 

17 Property and Administrative Services Act of 1949 (41 U.S.C. 

18 252–266)’’ and substitute ‘‘Part C of subtitle I of title 41’’; 

19 (B) in subsection (d)(2)(B), strike ‘‘The Office of Federal Pro20 curement Policy Act (41 U.S.C. 401 et seq.)’’ and substitute 

21 ‘‘Part B of subtitle I of title 41’’; 

22 (C) in subsection (d)(2)(C), strike ‘‘, except for section 315 (41 

23 U.S.C. 265). For the purpose of applying section 315 of that Act 

24 to the system,’’ and substitute ‘‘. However, section 4705 of title 

25 41 shall apply to the new acquisition management system devel26 oped and implemented pursuant to paragraph (1). For the purpose 

27 of applying section 4705 of title 41 to the system,’’; and 

28 (D) in subsection (d)(3)—

29 (i) in the catchline, strike ‘‘THE OFFICE OF FEDERAL PRO30 CUREMENT POLICY ACT’’ and substitute ‘‘PART B OF SUB31 TITLE I OF TITLE 41’’; 

32 (ii) strike ‘‘section 27 of the Office of Federal Procurement 

33 Policy Act (41 U.S.C. 423)’’ and substitute ‘‘chapter 21 of 

34 title 41’’; and 

35 (iii) in subparagraph (A), strike ‘‘Subsections (f) and (g)’’ 

36 and substitute ‘‘Sections 2101 and 2106 of title 41’’. 

37 (8) In section 40118(f)(2), strike ‘‘section 4(12) of the Office of 

38 Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute 

39 ‘‘section 103 of title 41’’. 

40 (9) In section 47305(d), strike ‘‘Section 3709 of the Revised Stat41 utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
198 

•HR 4320 IH 

1 SEC. 4. LEGISLATIVE PURPOSE AND CONSTRUCTION. 

2 (a) PURPOSE.—The purpose of this Act is to revise, codify, and enact 

3 without substantive change the general and permanent laws of the United 

4 States related to public contracts in order to remove ambiguities, contradic5 tions, and other imperfections and to repeal obsolete, superfluous, and su6 perseded provisions. 

7 (b) NO SUBSTANTIVE CHANGE.— 

8 (1) IN GENERAL.—This Act makes no substantive change in existing 

9 law and may not be construed as making a substantive change in exist10 ing law. 

11 (2) DEEMED DATE OF ENACTMENT FOR CERTAIN PURPOSES.—For 

12 purposes of determining whether one provision of law supersedes an13 other based on enactment later in time, and otherwise to ensure that 

14 this Act makes no substantive change in existing law, the date of enact15 ment of a provision restated in section 1 of this Act is deemed to re16 main unchanged, continuing to be the date of enactment of the under17 lying provision of public law that is being restated. 

18 (3) INCONSISTENT LAWS ENACTED AFTER DECEMBER 31, 2003.— 

19 This Act restates certain laws enacted before January 1, 2004. Any 

20 law enacted after December 31, 2003, that is inconsistent with this 

21 Act, including any law purporting to amend or repeal a provision that 

22 is repealed by this Act, supersedes this Act to the extent of the incon23 sistency. 

24 (c) REFERENCES.—A reference to a law replaced by section 1 of this Act, 

25 including a reference in a regulation, order, or other law, is deemed to refer 

26 to the corresponding provision enacted by this Act. 

27 (d) CONTINUING EFFECT.—An order, rule, or regulation in effect under 

28 a law replaced by section 1 of this Act continues in effect under the cor29 responding provision enacted by this Act until repealed, amended, or super30 seded. 

31 (e) ACTIONS AND OFFENSES UNDER PRIOR LAW.—An action taken or 

32 an offense committed under a law replaced by section 1 of this Act is 

33 deemed to have been taken or committed under the corresponding provision 

34 enacted by this Act. 

35 (f) INFERENCES.—An inference of a legislative construction is not to be 

36 drawn by reason of the location in the United States Code of a provision 

37 enacted by this Act or by reason of a caption or catch line of the provision. 

38 (g) SEVERABILITY.—If a provision enacted by this Act is held invalid, all 

39 valid provisions that are severable from the invalid provision remain in ef40 fect. If a provision enacted by this Act is held invalid in any of its applica-
199 

•HR 4320 IH 

1 tions, the provision remains valid for all valid applications that are severable 

2 from any of the invalid applications. 

3 SEC. 5. 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. 
200 

•HR 4320 IH 

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 ........................

1877 

Feb. 27 .................... 69 ...................................... (16th complete par. on p. 249) ...................................................................................... 19 249 ......................................... 22 6306 

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 

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 ..................................................................................................................... 47 1521 ....................................... 10c note ................................................................ title III, § 5 ..................................................................................................................... 47 1521 ....................................... 10c note ................................................................ title III, § 7 ..................................................................................................................... ........ ................................................ 10a note ........................

June 16 ................... 101 .................................... 5 ...................................................................................................................................... 48 305 ......................................... 24a ........................

1934 

Jan. 25 .................... 5 ........................................ (related to R.S. § 3741) .................................................................................................. 48 337 ......................................... 22 6306 June 16 ................... 553 .................................... 1 ...................................................................................................................................... 48 974 ......................................... 28 ........................

........................................ 2 ...................................................................................................................................... 48 975 ......................................... 29 ................................................................ 3 ...................................................................................................................................... 48 975 ......................................... 30 ................................................................ 4 ...................................................................................................................................... 48 975 ......................................... 31 ........................
201 

•HR 4320 IH 

........................................ 5 ...................................................................................................................................... 48 975 ......................................... 32 ................................................................ 6 ...................................................................................................................................... 48 975 ......................................... 33 ........................

June 27 ................... 847 .................................... 510 (related to R.S. § 3741) .......................................................................................... 48 1264 ....................................... 22 6306 

1935 

Apr. 24 .................... 78 ...................................... ......................................................................................................................................... 49 161 ......................................... 24a ........................Aug. 29 .................... 815 .................................... ......................................................................................................................................... 49 990 ......................................... 34 ........................

816 .................................... ......................................................................................................................................... 49 991 ......................................... 24a ........................

1936 

Apr. 17 .................... 233 .................................... 1 (last par. (related to R.S. § 3709) under heading ‘‘Botanic Garden’’) ...................... 49 1226 ....................................... 6kk ........................

........................................ 1 (last par. (related to R.S. § 3744) under heading ‘‘Botanic Garden’’) ...................... 49 1226 ....................................... 16b ........................

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 ........................................ 5 ...................................................................................................................................... 49 2038 ....................................... 39 6508 ........................................ 6 ...................................................................................................................................... 49 2038 ....................................... 40 6506 ........................................ 7 ...................................................................................................................................... 49 2039 ....................................... 41 6501 ........................................ 8 ...................................................................................................................................... 49 2039 ....................................... 42 6511 ........................................ 9 ...................................................................................................................................... 49 2039 ....................................... 43 6505 ........................................ 10 .................................................................................................................................... ........ ................................................ 43a 6509 ........................................ 11 .................................................................................................................................... ........ ................................................ 43b 6510 ........................................ 12 .................................................................................................................................... 49 2039 ....................................... 44 ................................................................ 13 .................................................................................................................................... 49 2039 ....................................... 45 6502 ........................................ 14 .................................................................................................................................... ........ ................................................ 35 note ........................

1937 

May 18 .................... 223 .................................... 1 (last par. (related to R.S. § 3709) under heading ‘‘Botanic Garden’’) ...................... 50 181 ......................................... 6kk ........................

........................................ 1 (last par. (related to R.S. § 3744) under heading ‘‘Botanic Garden’’) ...................... 50 181 ......................................... 16b ........................

June 2 ..................... 293 .................................... ......................................................................................................................................... 50 245 ......................................... 23 ........................Aug. 26 .................... 821 .................................... (related to R.S. § 3741) .................................................................................................. 50 838 ......................................... 22 6306 

1938 

May 17 .................... 236 .................................... 1 (1st par. (related to R.S. § 3709) on p. 393) ............................................................. 52 393 ......................................... 6kk ........................

........................................ 1 (1st par. (related to R.S. § 3744) on p. 393) ............................................................. 52 393 ......................................... 16b ........................

June 25 ................... 697 .................................... 1 ...................................................................................................................................... 52 1196 ....................................... 46 8502 

........................................ 2(a)(1) (1st sentence words before ‘‘(hereafter’’) .......................................................... 52 1196 ....................................... 47 8503 ........................................ 2(a)(1) (1st sentence words after ‘‘a list’’) .................................................................... 52 1196 ....................................... 47 8501 ........................................ 2(a)(1) (last sentence), (2), (b)–(e) ................................................................................ 52 1196 ....................................... 47 8503 ........................................ 3 ...................................................................................................................................... 52 1196 ....................................... 48 8504 ........................................ 4 ...................................................................................................................................... 52 1196 ....................................... 48a 8505 ........................................ 5 ...................................................................................................................................... 52 1196 ....................................... 48b 8501 ........................................ 6 ...................................................................................................................................... 52 1196 ....................................... 48c 8506 
202 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 7 ...................................................................................................................................... ........ ................................................ 46 note ........................

1939 

June 16 ................... 208 .................................... 1 (3d complete par. (related to R.S. § 3709) on p. 834) ............................................... 53 834 ......................................... 6kk ........................

........................................ 1 (3d complete par. (related to R.S. § 3744) on p. 834) ............................................... 53 834 ......................................... 16b ........................

Aug. 4 ...................... 418 .................................... 13 (related to R.S. § 3744) ............................................................................................ 53 1197 ....................................... 16d ........................

1940 

June 18 ................... 395 .................................... 1 (last par. (related to R.S. § 3709) under heading ‘‘Botanic Garden’’) ...................... 54 474 ......................................... 6kk ........................

........................................ 1 (last par. (related to R.S. § 3744) under heading ‘‘Botanic Garden’’) ...................... 54 474 ......................................... 16b ........................

June 24 ................... 412 .................................... ......................................................................................................................................... 54 504 ......................................... 6b 6102 June 28 ................... 440 .................................... 13 .................................................................................................................................... 54 681 ......................................... 40 6506 Oct. 9 ...................... 779 .................................... 1 (related to R.S. § 3737) .............................................................................................. 54 1029 ....................................... 15 6305 Oct. 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 ........................

1941 

Oct. 21 .................... 452 .................................... ......................................................................................................................................... 55 743 ......................................... 1, 2, 3, 4, 4a, 16, 17, 

18, 19 

........................

1942 

May 13 .................... 306 .................................... ......................................................................................................................................... 56 277 ......................................... 35 6502 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 .................................... 1–3 .................................................................................................................................. 58 649 ......................................... 101–103 ........................

........................................ 4(b)–13(c) ....................................................................................................................... 58 651 ......................................... 104–113 ................................................................ 13(d) ............................................................................................................................... 58 662 ......................................... 113 ................................................................ 13(e)–15 ......................................................................................................................... 58 662 ......................................... 113–115 ........................
203 

•HR 4320 IH 

........................................ 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(a) ................................................................................................................................. 60 809 ......................................... 5 6101 

........................................ 9(c) ................................................................................................................................. 60 809 ......................................... 5 6101 

Aug. 7 ...................... 864 .................................... ......................................................................................................................................... 60 902 ......................................... 106 note ........................

1948 

June 25 ................... 646 .................................... 2(d) ................................................................................................................................. 62 985 ......................................... 114 note ........................

........................................ 37 .................................................................................................................................... 62 992 ......................................... 106 note ........................

1949 

June 30 ................... 288 .................................... 1(a) ................................................................................................................................. 63 377 ......................................... 251 note ........................

........................................ 301 .................................................................................................................................. 63 393 ......................................... 251 ................................................................ 302(a) ............................................................................................................................. 63 393 ......................................... 252 3102 ........................................ 302(b) ............................................................................................................................. 63 393 ......................................... 252 3105 ........................................ 302(c)(1) ......................................................................................................................... 63 393 ......................................... 252 3107 ........................................ 302(c)(2) ......................................................................................................................... ........ ................................................ 252 3301 ........................................ 302A, 302B .................................................................................................................... ........ ................................................ 252a, 252b 3102 ........................................ 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 3106 ........................................ 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 
204 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 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 ........................................ 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 
205 

•HR 4320 IH 

........................................ 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 3101 ........................................ 309(b) ............................................................................................................................. ........ ................................................ 259 3101 ........................................ 309(c)(1) ......................................................................................................................... ........ ................................................ 259 110 ........................................ 309(c)(2) ......................................................................................................................... ........ ................................................ 259 111 ........................................ 309(c)(3) ......................................................................................................................... ........ ................................................ 259 113 ........................................ 309(c)(4) ......................................................................................................................... ........ ................................................ 259 106 ........................................ 309(c)(5) ......................................................................................................................... ........ ................................................ 259 112 ........................................ 309(c)(6) ......................................................................................................................... ........ ................................................ 259 115 ........................................ 309(c)(7) ......................................................................................................................... ........ ................................................ 259 108 ........................................ 309(c)(8), (9) .................................................................................................................. ........ ................................................ 259 107 ........................................ 309(c)(10) ....................................................................................................................... ........ ................................................ 259 114 ........................................ 309(c)(11) ....................................................................................................................... ........ ................................................ 259 103 ........................................ 309(c)(12) ....................................................................................................................... ........ ................................................ 259 109 ........................................ 309(c)(13) ....................................................................................................................... ........ ................................................ 259 102 ........................................ 309(c)(14) ....................................................................................................................... ........ ................................................ 259 104 ........................................ 309(d) ............................................................................................................................. ........ ................................................ 259 3101 ........................................ 309(e) ............................................................................................................................. ........ ................................................ 259 105 ........................................ 310 .................................................................................................................................. 63 397 ......................................... 260 3102 ........................................ 311 .................................................................................................................................. ........ ................................................ 261 3103 ........................................ 312 .................................................................................................................................. ........ ................................................ 262 4701 ........................................ 313 .................................................................................................................................. ........ ................................................ 263 3104 ........................................ 314 .................................................................................................................................. ........ ................................................ 264 3306 ........................................ 314A (‘‘commercial item’’) ............................................................................................. ........ ................................................ 264a (‘‘commercial 

item’’) 

103 

........................................ 314A (‘‘nondevelopmental item’’) ................................................................................... ........ ................................................ 264a 

(‘‘nondevelopmental 

item’’) 

109 

........................................ 314A (‘‘component’’) ...................................................................................................... ........ ................................................ 264a (‘‘component’’) 104 ........................................ 314A (‘‘commercial component’’) ................................................................................... ........ ................................................ 264a (‘‘commercial 

component’’) 

102 

........................................ 314B ............................................................................................................................... ........ ................................................ 264b 3306 ........................................ 315 .................................................................................................................................. ........ ................................................ 265 4705 ........................................ 316 .................................................................................................................................. ........ ................................................ 266 3106 ........................................ 317 .................................................................................................................................. ........ ................................................ 266a 3906 ........................................ 602(f) .............................................................................................................................. 63 403 ......................................... 5 6101 ........................................ 604 .................................................................................................................................. 63 403 ......................................... 251 note ........................
206 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

Oct. 29 .................... 787 .................................... 633 .................................................................................................................................. 63 1024 ....................................... 10d 8302, 8303 

1950 

Sept. 5 ..................... 849 .................................... 6(a) and (b) (related to § 602(f)) ................................................................................... 64 583 ......................................... 5 6101 

........................................ 6(a) and (b) (related to § 604) ....................................................................................... 64 583 ......................................... 251 note ................................................................ 8(c) (related to § 602(f)) ................................................................................................ 64 591 ......................................... 5 6101 ........................................ 10(a) ............................................................................................................................... 64 591 ......................................... 256a 4707 ........................................ 10(b) ............................................................................................................................... 64 591 ......................................... 256 note ........................

1951 

May 15 .................... 75 ...................................... (related to R.S. § 3737) .................................................................................................. 65 41 ........................................... 15 6305 Oct. 31 .................... 654 .................................... 1(98–105) ....................................................................................................................... 65 705 ......................................... 6 ........................

........................................ 1(106) ............................................................................................................................. 65 705 ......................................... 6a ................................................................ 1(107) ............................................................................................................................. 65 705 ......................................... 6a ................................................................ 1(108) ............................................................................................................................. 65 705 ......................................... 6a ................................................................ 1(109) ............................................................................................................................. 65 705 ......................................... 27 ................................................................ 1(110) ............................................................................................................................. 65 705 ......................................... 102 ................................................................ 1(111) ............................................................................................................................. 65 705 ......................................... 118 ................................................................ 3(8), (9) .......................................................................................................................... 65 708 ......................................... 6a 6102 ........................................ 4(9) ................................................................................................................................. 65 709 ......................................... 6a ........................

1952 

June 30 ................... 530 .................................... 301 (related to redesignation of § 10 to § 11) ................................................................ 66 308 ......................................... 44 ........................

........................................ 301 (related to redesignation of § 11 to § 12) ................................................................ 66 308 ......................................... 45 6502 ........................................ 301 (‘‘Sec. 10’’) .............................................................................................................. 66 308 ......................................... 43a 6509 

July 12 .................... 703 .................................... 1(m) ................................................................................................................................ 66 594 ......................................... 251–255, 260 3102, 3105, 

3107, 3301– 

3304, 3905, 

4501–4503 

........................................ 1(n) ................................................................................................................................. 66 594 ......................................... 260 3102 

July 14 .................... 739 .................................... ......................................................................................................................................... 66 627 ......................................... 113, 113 note ........................

1953 

July 28 .................... 253 .................................... 4(b) ................................................................................................................................. 67 226 ......................................... 114 note ........................

........................................ 5 ...................................................................................................................................... 67 226 ......................................... 114 ........................
207 

•HR 4320 IH 

1954 

May 11 .................... 199 .................................... 1 ...................................................................................................................................... 68 81 ........................................... 321 ........................

........................................ 2 ...................................................................................................................................... 68 81 ........................................... 322 ........................

June 28 ................... 403 .................................... 1 ...................................................................................................................................... 68 300 ......................................... 117 ........................

........................................ 2 ...................................................................................................................................... 68 300 ......................................... 117 note ........................

Aug. 30 .................... 1076 .................................. 1(2) ................................................................................................................................. 68 966 ......................................... 106 note ........................

1957 

July 1 ...................... 85–75 ................................ 101 (last par. on p. 251) ................................................................................................ 71 251 ......................................... 6a ........................

1958 

Aug. 28 .................... 85–800 .............................. 1 ...................................................................................................................................... 72 966 ......................................... 252 3102 

........................................ 2, 3 ................................................................................................................................. 72 966 ......................................... 252 3107 ........................................ 4 ‘‘Sec. 305(a)’’ .............................................................................................................. 72 966 ......................................... 255 4501 ........................................ 4 ‘‘Sec. 305(b)’’ .............................................................................................................. 72 966 ......................................... 255 4502 ........................................ 4 ‘‘Sec. 305(c)’’ .............................................................................................................. 72 966 ......................................... 255 4503 ........................................ 5 ...................................................................................................................................... 72 967 ......................................... 257 4701 ........................................ 6 ...................................................................................................................................... 72 967 ......................................... 260 3102 ........................................ 7 ...................................................................................................................................... 72 967 ......................................... 5 6101 

1959 

June 25 ................... 86–70 ................................ 43 .................................................................................................................................... 73 151 ......................................... 10c 8301 

1960 

July 12 .................... 86–624 .............................. 28 .................................................................................................................................... 74 419 ......................................... 10c 8301 Sept. 2 ..................... 86–695 .............................. ......................................................................................................................................... 74 740 ......................................... 51–58 8701–8707 

1962 

Sept. 5 ..................... 87–638 .............................. ......................................................................................................................................... 76 437 ......................................... 254a 4708 

1965 

July 27 .................... 89–90 ................................ (2d par. on p. 276) ......................................................................................................... 79 276 ......................................... 6a–1 6102 Oct. 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 ........................................ 6 ...................................................................................................................................... 79 1035 ....................................... 355 6707 ........................................ 7 ...................................................................................................................................... 79 1035 ....................................... 356 6702 ........................................ 8 ...................................................................................................................................... 79 1036 ....................................... 357 6701 ........................................ 9 ...................................................................................................................................... 79 1036 ....................................... 351 note ................................................................ 10 .................................................................................................................................... ........ ................................................ 358 6707 

Nov. 8 ...................... 89–343 .............................. 1 ...................................................................................................................................... 79 1303 ....................................... 252 3102 
208 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 2 ...................................................................................................................................... 79 1303 ....................................... 252 3107 ........................................ 3, 4 ................................................................................................................................. 79 1303 ....................................... 257 4701 ........................................ 5 ...................................................................................................................................... 79 1303 ....................................... 260 3102 

89–348 .............................. 1(2) ................................................................................................................................. 79 1310 ....................................... 252 3107 

1966 

Oct. 15 .................... 89–687 .............................. 612(e) ............................................................................................................................. 80 993 ......................................... 11 6301 

1968 

Mar. 16 .................... 90–268 .............................. 2 ...................................................................................................................................... 82 49 ........................................... 253 3301–3304 

........................................ 4 ...................................................................................................................................... 82 50 ........................................... 252 3107 

June 19 ................... 90–351 .............................. 819(b) ............................................................................................................................. ........ ................................................ 35 6502 

1969 

Nov. 26 .................... 91–129 .............................. ......................................................................................................................................... 83 269 ......................................... 251 note ........................

1971 

June 23 ................... 92–28 ................................ 1 ‘‘Sec. 1’’ ....................................................................................................................... 85 77 ........................................... 46 8502 

........................................ 1 ‘‘Sec. 2(a)(1) (1st sentence words before ‘(hereafter’)’’ ............................................. 85 79 ........................................... 47 8503 ........................................ 1 ‘‘Sec. 2(a)(1) (1st sentence words after ‘a list’)’’ ....................................................... 85 79 ........................................... 47 8501 ........................................ 1 ‘‘Sec. 2(a)(1) (last sentence), (2), (b)–(e)’’ ................................................................. 85 80 ........................................... 47 8503 ........................................ 1 ‘‘Sec. 3’’ ....................................................................................................................... 85 80 ........................................... 48 8504 ........................................ 1 ‘‘Sec. 4’’ ....................................................................................................................... 85 81 ........................................... 48a 8505 ........................................ 1 ‘‘Sec. 5’’ ....................................................................................................................... 85 81 ........................................... 48b 8501 ........................................ 1 ‘‘Sec. 6’’ ....................................................................................................................... 85 82 ........................................... 48c 8506 ........................................ 2 ...................................................................................................................................... 85 82 ........................................... 46 note ........................

July 9 ...................... 92–47 ................................ ......................................................................................................................................... 85 102 ......................................... 251 note ........................

1972 

Oct. 9 ...................... 92–473 .............................. 1, 2 ................................................................................................................................. 86 789 ......................................... 351 6703 

........................................ 3 ...................................................................................................................................... 86 789 ......................................... 353 6707 ........................................ 4 ...................................................................................................................................... 86 790 ......................................... 354 6706 ........................................ 5 ...................................................................................................................................... 86 790 ......................................... 358 6707 
209 

•HR 4320 IH 

1973 

July 6 ...................... 93–57 ................................ 1 ...................................................................................................................................... 87 140 ......................................... 357 6701 

........................................ 2 ...................................................................................................................................... 87 140 ......................................... 357 note ........................

July 30 .................... 93–76 ................................ ......................................................................................................................................... 87 176 ......................................... 48c 8506 

1974 

July 25 .................... 93–356 .............................. 1 ...................................................................................................................................... 88 390 ......................................... 5 6101 

........................................ 2 ...................................................................................................................................... 88 390 ......................................... 6a–1 6102 ........................................ 3 ...................................................................................................................................... 88 390 ......................................... 252 3107 

93–358 .............................. 1(1), (2) .......................................................................................................................... 88 392 ......................................... 46 8502 

........................................ 1(3) ................................................................................................................................. 88 393 ......................................... 48b 8501 ........................................ 1(4) ................................................................................................................................. 88 393 ......................................... 48c 8506 

Aug. 30 .................... 93–400 .............................. 1(a) ................................................................................................................................. 88 796 ......................................... 401 note ........................

........................................ 1(b) ................................................................................................................................. 88 796 ......................................... ........................................ ................................................................ 4(1) ................................................................................................................................. 88 797 ......................................... 403 132 ........................................ 4(2) ................................................................................................................................. 88 797 ......................................... 403 110 ........................................ 4(3) ................................................................................................................................. 88 797 ......................................... 403 111 ........................................ 4(4) ................................................................................................................................. 88 797 ......................................... 403 113 ........................................ 4(5) ................................................................................................................................. ........ ................................................ 403 131 ........................................ 4(6) ................................................................................................................................. ........ ................................................ 403 106 ........................................ 4(7) ................................................................................................................................. ........ ................................................ 403 112 ........................................ 4(8) ................................................................................................................................. ........ ................................................ 403 115 ........................................ 4(9) ................................................................................................................................. ........ ................................................ 403 108 ........................................ 4(10) (‘‘item’’, ‘‘item of supply’’) ................................................................................... ........ ................................................ 403 107 ........................................ 4(10) (‘‘supplies’’) .......................................................................................................... ........ ................................................ 403 114 ........................................ 4(11) ............................................................................................................................... ........ ................................................ 403 133 ........................................ 4(12) ............................................................................................................................... ........ ................................................ 403 103 ........................................ 4(13) ............................................................................................................................... ........ ................................................ 403 109 ........................................ 4(14) ............................................................................................................................... ........ ................................................ 403 104 ........................................ 4(15) ............................................................................................................................... ........ ................................................ 403 102 ........................................ 4(16) ............................................................................................................................... ........ ................................................ 403 101 ........................................ 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 ........................................ 6(k) ................................................................................................................................. ........ ................................................ 405 1131 ........................................ 7 ...................................................................................................................................... 88 798 ......................................... 406 1701 ........................................ 9 ...................................................................................................................................... 88 799 ......................................... 408 1121 ........................................ 11 .................................................................................................................................... 88 799 ......................................... 410 1101 ........................................ 12 .................................................................................................................................... 88 799 ......................................... 411 1122 
210 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 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 1301 ........................................ 25(c)–(f) ......................................................................................................................... ........ ................................................ 421 1302 ........................................ 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 1303 ........................................ 30 .................................................................................................................................... ........ ................................................ 426 2301 ........................................ 31 .................................................................................................................................... ........ ................................................ 427 1901 ........................................ 32 .................................................................................................................................... ........ ................................................ 428 1902 ........................................ 32A ................................................................................................................................. ........ ................................................ 428a 1903 ........................................ 33 .................................................................................................................................... ........ ................................................ 429 1905 ........................................ 34 .................................................................................................................................... ........ ................................................ 430 1906 ........................................ 35 .................................................................................................................................... ........ ................................................ 431 1907 
211 

•HR 4320 IH 

........................................ 36 .................................................................................................................................... ........ ................................................ 432 1709 ........................................ 37 .................................................................................................................................... ........ ................................................ 433 1703 ........................................ 38 .................................................................................................................................... ........ ................................................ 434 2307 ........................................ 39 .................................................................................................................................... ........ ................................................ 435 1127 ........................................ 40 .................................................................................................................................... ........ ................................................ 436 2308 ........................................ 41 .................................................................................................................................... ........ ................................................ 437 2309 

1975 

Dec. 31 .................... 94–190 .............................. ......................................................................................................................................... 89 1095 ....................................... 252 note ........................

1976 

Apr. 21 .................... 94–273 .............................. 3(22) ............................................................................................................................... 90 377 ......................................... 48b 8501 

........................................ 8(2) ................................................................................................................................. 90 378 ......................................... 46 8502 ........................................ 29 .................................................................................................................................... 90 380 ......................................... 358 6707 

Oct. 13 .................... 94–489 .............................. 1(a) ................................................................................................................................. 90 2358 ....................................... 351 6702 

........................................ 1(b) ................................................................................................................................. 90 2358 ....................................... 351 6704 ........................................ 2 ...................................................................................................................................... 90 2358 ....................................... 351 6703 ........................................ 3 ...................................................................................................................................... 90 2358 ....................................... 357 6701 

1978 

Oct. 24 .................... 95–507 .............................. 222 (1st sentence) .......................................................................................................... 92 1771 ....................................... 405a 1121 

........................................ 222 (last sentence) ......................................................................................................... 92 1771 ....................................... 405a 1123 

Nov. 1 ...................... 95–563 .............................. 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 ........................

Nov. 6 ...................... 95–598 .............................. 326 .................................................................................................................................. 92 2679 ....................................... 41 6501 
212 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

1979 

Oct. 10 .................... 96–83 ................................ 1(a) ................................................................................................................................. 93 648 ......................................... 401 note ........................

........................................ 1(b) ................................................................................................................................. 93 648 ......................................... ........................................ ................................................................ 3 ...................................................................................................................................... 93 649 ......................................... 403 110, 111, 113, 

132 

........................................ 4 ...................................................................................................................................... 93 649 ......................................... 405 1121, 1122, 

1125, 1130, 

2304 

........................................ 7 ...................................................................................................................................... 93 651 ......................................... 410 1101 ........................................ 8 ...................................................................................................................................... 93 652 ......................................... 411 1122 ........................................ 9 ...................................................................................................................................... 93 652 ......................................... 412 2305 ........................................ 12 .................................................................................................................................... 93 652 ......................................... 401 note ........................

Dec. 27 .................... 96–157 .............................. 2 (related to ‘‘Sec. 827(b)’’ of Pub. L. 90–351) ............................................................ 93 1215 ....................................... 35 6502 

1981 

Aug. 6 ...................... 97–31 ................................ 12(16) ............................................................................................................................. 95 154 ......................................... 50 6309 

........................................ 12(17) ............................................................................................................................. 95 154 ......................................... 105 ................................................................ 12(18) ............................................................................................................................. 95 154 ......................................... 112 ........................

1982 

Apr. 2 ...................... 97–164 .............................. 156 .................................................................................................................................. 96 47 ........................................... 607 6907 

........................................ 157 .................................................................................................................................. 96 47 ........................................... 609 6907 ........................................ 160(a)(14) (related to ‘‘Sec. 13(b)(2)’’) ......................................................................... 96 48 ........................................... 113 ................................................................ 160(a)(14) (related to ‘‘Sec. 14’’) .................................................................................. 96 48 ........................................... 114 ................................................................ 160(a)(15) (related to ‘‘Sec. 8(d)’’) ............................................................................... 96 48 ........................................... 607 6905 ........................................ 160(a)(15) (related to ‘‘Sec. 10(d)’’) ............................................................................. 96 48 ........................................... 609 6907 ........................................ 161(10) ........................................................................................................................... 96 49 ........................................... 609 6904 

1983 

Dec. 1 ...................... 98–191 .............................. 4 ‘‘Sec. 4(1)’’ .................................................................................................................. 97 1326 ....................................... 403 132 

........................................ 4 ‘‘Sec. 4(2)’’ .................................................................................................................. 97 1326 ....................................... 403 110 ........................................ 4 ‘‘Sec. 4(3)’’ .................................................................................................................. 97 1326 ....................................... 403 111 ........................................ 4 ‘‘Sec. 4(5)’’ .................................................................................................................. 97 1326 ....................................... 403 113 ........................................ 5 ‘‘Sec. 6(a)–(c)’’ ............................................................................................................ 97 1326 ....................................... 405 1121 ........................................ 5 ‘‘Sec. 6(d), (e)’’ ........................................................................................................... 97 1327 ....................................... 403 1122 
213 

•HR 4320 IH 

........................................ 5 ‘‘Sec. 6(f)’’ ................................................................................................................... 97 1328 ....................................... 405 1121 ........................................ 5 ‘‘Sec. 6(g)’’ .................................................................................................................. 97 1328 ....................................... 405 1122 ........................................ 5 ‘‘Sec. 6(h)(1)’’ ............................................................................................................. 97 1328 ....................................... 405 1130 ........................................ 5 ‘‘Sec. 6(h)(2)’’ ............................................................................................................. 97 1328 ....................................... 405 2304 ........................................ 5 ‘‘Sec. 6(i)’’ ................................................................................................................... 97 1328 ....................................... 405 1125 ........................................ 6 ...................................................................................................................................... 97 1329 ....................................... 410 1101 ........................................ 7 ‘‘Sec. 15’’ ..................................................................................................................... 97 1329 ....................................... 413 1124 ........................................ 7 ‘‘Sec. 16’’ ..................................................................................................................... 97 1330 ....................................... 414 1702 ........................................ 8(c) ................................................................................................................................. 97 1331 ....................................... 411 1122 ........................................ 9(a)(1) ............................................................................................................................ 97 1331 ....................................... 252 3107 ........................................ 9(b) ................................................................................................................................. 97 1332 ....................................... 5 6101 ........................................ 9(c) ................................................................................................................................. 97 1332 ....................................... 6a–1 6102 

1984 

July 18 .................... 98–369 .............................. 2711(a)(1) ‘‘Sec. 303(a)’’ ............................................................................................... 98 1175 ....................................... 253 3301 

........................................ 2711(a)(1) ‘‘Sec. 303(b)’’ ............................................................................................... 98 1175 ....................................... 253 3302 ........................................ 2711(a)(1) ‘‘Sec. 303(c)–(f)’’ ......................................................................................... 98 1176 ....................................... 253 3303 ........................................ 2711(a)(1) ‘‘Sec. 303(g)’’ ............................................................................................... 98 1178 ....................................... 253 3304 ........................................ 2711(a)(2) ‘‘Sec. 303A’’ ................................................................................................. 98 1178 ....................................... 253a 3305 ........................................ 2711(a)(2) ‘‘Sec. 303B(a), (b)’’ ..................................................................................... 98 1179 ....................................... 253b 3701 ........................................ 2711(a)(2) ‘‘Sec. 303B(c)’’ ............................................................................................ 98 1179 ....................................... 253b 3702 ........................................ 2711(a)(2) ‘‘Sec. 303B(d)’’ ............................................................................................ 98 1180 ....................................... 253b 3703 ........................................ 2711(a)(2) ‘‘Sec. 303B(e)’’ ............................................................................................ 98 1180 ....................................... 253b 3707 ........................................ 2711(a)(3) ...................................................................................................................... 98 1180 ....................................... 259 102–104, 106– 

115, 3101 

........................................ 2711(b) ........................................................................................................................... 98 1180 ....................................... ........................................ ................................................................ 2711(c) ........................................................................................................................... 98 1181 ....................................... 253 note ................................................................ 2714(a)(1)(A) ................................................................................................................. 98 1184 ....................................... 252 3105 ........................................ 2714(a)(1)(B) ‘‘Sec. 302(c)(1)’’ ..................................................................................... 98 1184 ....................................... 252 3107 ........................................ 2714(a)(1)(B) ‘‘Sec. 302(c)(2)’’ ..................................................................................... 98 1184 ....................................... 252 3301 ........................................ 2714(a)(2) ...................................................................................................................... 98 1184 ....................................... 254 ........................................ 2714(a)(3)(A), (B) ......................................................................................................... 98 1184 ....................................... 254 3901 ........................................ 2714(a)(4) ...................................................................................................................... 98 1184 ....................................... 257 4701 ........................................ 2714(a)(6) ...................................................................................................................... 98 1185 ....................................... 260 3102 ........................................ 2731(a)(2) ...................................................................................................................... 98 1195 ....................................... 403 113 ........................................ 2731(a)(3) ‘‘Sec. 4(6)’’ ................................................................................................... 98 1195 ....................................... 403 131 ........................................ 2731(a)(3) ‘‘Sec. 4(7)’’ ................................................................................................... 98 1195 ....................................... 403 106 ........................................ 2731(a)(3) ‘‘Sec. 4(8)’’ ................................................................................................... 98 1195 ....................................... 403 112 ........................................ 2732(a) ‘‘Sec. 18’’ .......................................................................................................... 98 1195 ....................................... 416 1707 ........................................ 2732(a) ‘‘Sec. 19’’ .......................................................................................................... 98 1197 ....................................... 417 1710 ........................................ 2732(a) ‘‘Sec. 20’’ .......................................................................................................... 98 1197 ....................................... 418 1704 ........................................ 2732(b)(1) ...................................................................................................................... 98 1199 ....................................... 405 1122 ........................................ 2732(b)(2) ...................................................................................................................... 98 1199 ....................................... 414 1702 ........................................ 2752 ................................................................................................................................ 98 1203 ....................................... 403 note ................................................................ 2753 ................................................................................................................................ 98 1203 ....................................... ........................................ ........................

Oct. 12 .................... 98–473 .............................. 609B(f) (related to redesignation of § 827(b) as § 819(b)) ........................................... 98 2093 ....................................... 35 6502 
214 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

Oct. 30 .................... 98–557 .............................. 17(e)(1), (2) .................................................................................................................... 98 2868 ....................................... 11 6301 

........................................ 17(e)(3) ........................................................................................................................... 98 2868 ....................................... 11 ........................

98–577 .............................. 102(1) ............................................................................................................................. 98 3067 ....................................... 403 106 

........................................ 102(2) ............................................................................................................................. 98 3067 ....................................... 403 112 ........................................ 102(3) ‘‘Sec. 4(9)’’ ......................................................................................................... 98 3067 ....................................... 403 115 ........................................ 102(3) ‘‘Sec. 4(10)’’ ....................................................................................................... 98 3067 ....................................... 403 108 ........................................ 102(3) ‘‘Sec. 4(11) (‘item’, ‘item of supply’)’’ ............................................................... 98 3067 ....................................... 403 107 ........................................ 102(3) ‘‘Sec. 4(11) (‘supplies’)’’ .................................................................................... 98 3067 ....................................... 403 114 ........................................ 201(a) ............................................................................................................................. 98 3068 ....................................... 253b 3307 ........................................ 201(b) ............................................................................................................................. 98 3068 ....................................... 253b note ................................................................ 202(a) ............................................................................................................................. 98 3069 ....................................... 253c 3310 ........................................ 202(b) ............................................................................................................................. 98 3071 ....................................... 253c note ................................................................ 203(a) ............................................................................................................................. 98 3071 ....................................... 253d 4703 ........................................ 203(b) ............................................................................................................................. 98 3072 ....................................... 253d note ................................................................ 204(b) ............................................................................................................................. 98 3072 ....................................... ........................................ ................................................................ 205(a) ............................................................................................................................. 98 3073 ....................................... 253f 3309 ........................................ 205(b) ............................................................................................................................. 98 3073 ....................................... 253f note ................................................................ 206(a) ............................................................................................................................. 98 3073 ....................................... 253g 4704 ........................................ 206(b) ............................................................................................................................. 98 3074 ....................................... 253g note ................................................................ 207 .................................................................................................................................. 98 3074 ....................................... ........................................ ................................................................ 301(a) ‘‘Sec. 21’’ ............................................................................................................ 98 3074 ....................................... 418a 2302 ........................................ 301(c) ............................................................................................................................. 98 3076 ....................................... 418a note ................................................................ 301(d) ............................................................................................................................. 98 3076 ....................................... ........................................ ................................................................ 302(a) ............................................................................................................................. 98 3076 ....................................... 418b 1706 ........................................ 302(b) ............................................................................................................................. 98 3077 ....................................... 418b note ................................................................ 303(a) ............................................................................................................................. 98 3077 ....................................... 416 1707 ........................................ 303(b) ............................................................................................................................. 98 3079 ....................................... 416 note ................................................................ 502 .................................................................................................................................. 98 3085 ....................................... 414a 1705 ........................................ 504(a)(1) ........................................................................................................................ 98 3086 ....................................... 253 3302 ........................................ 504(a)(2) ........................................................................................................................ 98 3086 ....................................... 253 3303 ........................................ 504(a)(3) ........................................................................................................................ 98 3086 ....................................... 259 3101 ........................................ 504(a)(4) ........................................................................................................................ 98 3086 ....................................... 259 102–104, 106– 

115 

1985 

Nov. 8 ...................... 99–145 .............................. 961(a)(2) ........................................................................................................................ 99 703 ......................................... 253 3303 
215 

•HR 4320 IH 

........................................ 961(d)(2) ........................................................................................................................ 99 704 ......................................... 418a 2302 ........................................ 961(d)(3) ........................................................................................................................ 99 704 ......................................... 418a note ................................................................ 1241(b) ........................................................................................................................... 99 734 ......................................... 35 6502 ........................................ 1241(c) ........................................................................................................................... 99 734 ......................................... 35 note ................................................................ 1304(c)(2) ....................................................................................................................... 99 742 ......................................... 253 3303 ........................................ 1304(c)(3) ....................................................................................................................... 99 742 ......................................... 253 3304 ........................................ 1304(c)(4)(A) ................................................................................................................. 99 742 ......................................... 253c–253g 3309, 3310, 

4703, 4704 

1986 

Oct. 18 .................... 99–500 .............................. 101(c) [title X, § 922(b)] ................................................................................................ 100 1783–151 ............................... 416 1707 

........................................ 101(c) [title X, § 922(d)(2)] ........................................................................................... 100 1783–152 ............................... 416 1707 

Oct. 30 .................... 99–591 .............................. 101(c) [title X, § 922(b)] ................................................................................................ 100 3341–151 ............................... 416 1707 

........................................ 101(c) [title X, § 922(d)(2)] ........................................................................................... 100 3341–152 ............................... 416 1707 

Nov. 7 ...................... 99–634 .............................. 1 ...................................................................................................................................... 100 3523 ....................................... 51 note ........................

........................................ 2(a) ‘‘Sec. 1’’ .................................................................................................................. 100 3523 ....................................... 51 ................................................................ 2(a) ‘‘Sec. 2’’ .................................................................................................................. 100 3523 ....................................... 52 8701 ........................................ 2(a) ‘‘Sec. 3’’ .................................................................................................................. 100 3524 ....................................... 53 8702 ........................................ 2(a) ‘‘Sec. 4’’ .................................................................................................................. 100 3524 ....................................... 54 8707 ........................................ 2(a) ‘‘Sec. 5’’ .................................................................................................................. 100 3524 ....................................... 55 8706 ........................................ 2(a) ‘‘Sec. 6’’ .................................................................................................................. 100 3524 ....................................... 56 8705 ........................................ 2(a) ‘‘Sec. 7’’ .................................................................................................................. 100 3525 ....................................... 57 8703 ........................................ 2(a) ‘‘Sec. 8’’ .................................................................................................................. 100 3525 ....................................... 58 8704 ........................................ 3 ...................................................................................................................................... 100 3525 ....................................... 51 note ........................

Nov. 14 .................... 99–661 .............................. 922(b) ............................................................................................................................. 100 3931 ....................................... 416 1707 

........................................ 922(d)(2) ........................................................................................................................ 100 3932 ....................................... 416 1707 

1987 

Dec. 22 .................... 100–202 ............................ 109 .................................................................................................................................. 101 1329–434 ............................... 10b note ........................

1988 

Aug. 23 .................... 100–418 ............................ 7002(1) (related to section 4) ........................................................................................ 102 1545 ....................................... 10c note ........................

........................................ 7002(1) (related to section 5) ........................................................................................ 102 1545 ....................................... 10c note ................................................................ 7005(a) ........................................................................................................................... 102 1552 ....................................... 10c 8301 ........................................ 7005(b) ........................................................................................................................... 102 1553 ....................................... 10a 8302 ........................................ 7005(c) ........................................................................................................................... 102 1553 ....................................... 436 8303 ........................................ 7005(d) ........................................................................................................................... 102 1553 ....................................... 10d 8302, 8303 

Oct. 1 ...................... 100–463 ............................ 8141 ................................................................................................................................ 102 2270–47 ................................. 405b 2303 Oct. 25 .................... 100–533 ............................ 502 .................................................................................................................................. 102 2697 ....................................... 417a 1711 Nov. 17 .................... 100–679 ............................ 1 ...................................................................................................................................... 102 4055 ....................................... 401 note ........................

........................................ 3(a)(1), (2) ..................................................................................................................... 102 4055 ....................................... 405 1121 ........................................ 3(a)(3) ............................................................................................................................ 102 4055 ....................................... 405 1122 ........................................ 3(a)(4) ............................................................................................................................ 102 4056 ....................................... 405 1121 ........................................ 3(b) ................................................................................................................................. 102 4056 ....................................... 410 1101 ........................................ 3(c) ................................................................................................................................. 102 4056 ....................................... 403 106–108, 112– 

115, 131 
216 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 4 ‘‘Sec. 25(a), (b)’’ ......................................................................................................... 102 4056 ....................................... 421 1301 ........................................ 4 ‘‘Sec. 25(c)–(g)’’ .......................................................................................................... 102 4056 ....................................... 421 1302 ........................................ 5(a) ‘‘Sec. 26(a)–(e)’’ ..................................................................................................... 102 4059 ....................................... 422 1501 ........................................ 5(a) ‘‘Sec. 26(f)–(h)(1)’’ ................................................................................................. 102 4060 ....................................... 422 1502 ........................................ 5(a) ‘‘Sec. 26(h)(2)–(4)’’ ................................................................................................ 102 4062 ....................................... 422 1503 ........................................ 5(a) ‘‘Sec. 26(i)’’ ............................................................................................................ 102 4062 ....................................... 422 ................................................................ 5(a) ‘‘Sec. 26(j)’’ ............................................................................................................ 102 4062 ....................................... 422 1504 ........................................ 5(a) ‘‘Sec. 26(k)’’ ........................................................................................................... 102 4062 ....................................... 422 1505 ........................................ 5(a) ‘‘Sec. 26(l)’’ ............................................................................................................ 102 4063 ....................................... 422 1506 ........................................ 6(a) ................................................................................................................................. 102 4063 ....................................... 423 2101–2107 ........................................ 6(b) ................................................................................................................................. 102 4068 ....................................... 423 note ........................

Nov. 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 ........................................ 5159 ................................................................................................................................ 102 4308 ....................................... ........................................ ................................................................ 5160 ................................................................................................................................ 102 4308 ....................................... 701 note ........................

Nov. 19 .................... 100–700 ............................ 8(a)(1) ............................................................................................................................ 102 4634 ....................................... 256 4301–4310 

1989 

Nov. 29 .................... 101–189 ............................ 814(a)–(d)(1) .................................................................................................................. 103 1495 ....................................... 423 2101–2107 

........................................ 814(e) ............................................................................................................................. 103 1500 ....................................... 423 note ........................

Nov. 30 .................... 101–194 ............................ 507(1) ............................................................................................................................. 103 1759 ....................................... 423 note ........................

1990 

Nov. 5 ...................... 101–509 ............................ 529 [title I, § 104(d)(4)] ................................................................................................ 104 1447 ....................................... 607 6905 

101–510 ............................ 806(a)(1) ........................................................................................................................ 104 1592 ....................................... 403 133 

........................................ 806(a)(2) ........................................................................................................................ 104 1592 ....................................... ........................................ ................................................................ 806(c) ............................................................................................................................. 104 1592 ....................................... 253 3304 ........................................ 806(d) ............................................................................................................................. 104 1592 ....................................... 416 1707 ........................................ 807 .................................................................................................................................. 104 1593 ....................................... 421 1301 ........................................ 815(a)(1) ........................................................................................................................ 104 1597 ....................................... 423 note ................................................................ 1484(l)(6) ....................................................................................................................... 104 1720 ....................................... 423 2101–2107 
217 

•HR 4320 IH 

101–514 ............................ 511 .................................................................................................................................. 104 2098 ....................................... 10b note ........................101–516 ............................ 340 .................................................................................................................................. 104 2187 ....................................... 10b note ........................

Nov. 15 .................... 101–552 ............................ 6(a) ................................................................................................................................. 104 2745 ....................................... 605 6903 

........................................ 6(b) ................................................................................................................................. 104 2746 ....................................... 607 6907 

1991 

Apr. 6 ...................... 102–25 .............................. 705(i) .............................................................................................................................. 105 121 ......................................... 423 2101–2107 June 13 ................... 102–54 .............................. 13(p) ............................................................................................................................... 105 278 ......................................... 46 8502 

1992 

Oct. 29 .................... 102–569 ............................ 911(a) ............................................................................................................................. 106 4486 ....................................... 46 8502 

102–572 ............................ 907(a)(1) ........................................................................................................................ 106 4518 ....................................... 605 6903 

........................................ 907(a)(2) ........................................................................................................................ 106 4518 ....................................... 605 note ................................................................ 907(a)(3) ........................................................................................................................ 106 4518 ....................................... 611 note 6909 ........................................ 907(a)(4) ........................................................................................................................ 106 4519 ....................................... 605 note ........................

1993 

Aug. 11 .................... 103–73 .............................. 301 .................................................................................................................................. 107 736 ......................................... 46 8502 

1994 

Oct. 13 .................... 103–355 ............................ 1051(1) ........................................................................................................................... 108 3260 ....................................... 253 3301 

........................................ 1051(2) ........................................................................................................................... 108 3260 ....................................... 253 3304 ........................................ 1052 ................................................................................................................................ 108 3260 ....................................... 253 3302 ........................................ 1053 ................................................................................................................................ 108 3261 ....................................... 253 3303 ........................................ 1054(a) ‘‘Sec. 303H’’ ..................................................................................................... 108 3261 ....................................... 253h 4103 ........................................ 1054(a) ‘‘Sec. 303I’’ ....................................................................................................... 108 3262 ....................................... 253i 4105 ........................................ 1054(a) ‘‘Sec. 303J’’ ...................................................................................................... 108 3264 ....................................... 253j 4106 ........................................ 1054(a) ‘‘Sec. 303K’’ ..................................................................................................... 108 3265 ....................................... 253k 4101 ........................................ 1054(b) ........................................................................................................................... 108 3265 ....................................... 253h note 4102 ........................................ 1055(a) ........................................................................................................................... 108 3265 ....................................... 253 3303 ........................................ 1055(b)(1) ...................................................................................................................... 108 3265 ....................................... 416 1707 ........................................ 1055(c) ........................................................................................................................... 108 3266 ....................................... 261 note ................................................................ 1061(a), (b) .................................................................................................................... 108 3266 ....................................... 253a 3305 ........................................ 1061(c)(1) ....................................................................................................................... 108 3267 ....................................... 253b 3701 ........................................ 1061(c)(2) ....................................................................................................................... 108 3267 ....................................... 253b 3702 ........................................ 1061(c)(3) ....................................................................................................................... 108 3267 ....................................... 253b 3703 ........................................ 1062 ................................................................................................................................ 108 3267 ....................................... 253a 3305 ........................................ 1063(a) ........................................................................................................................... 108 3268 ....................................... 253b 3702 ........................................ 1063(b) ........................................................................................................................... 108 3268 ....................................... 253b 3703 ........................................ 1064(1) ........................................................................................................................... 108 3268 ....................................... 253b 3307, 3707 ........................................ 1064(2) ........................................................................................................................... 108 3268 ....................................... 253b 3704 ........................................ 1065, 1066 ..................................................................................................................... 108 3269 ....................................... 253b 3708 ........................................ 1071 ................................................................................................................................ 108 3270 ....................................... 254 3905 ........................................ 1072 ................................................................................................................................ 108 3270 ....................................... 254c 3903 ........................................ 1073 ................................................................................................................................ 108 3271 ....................................... 253l 3902 ........................................ 1091(b)(1) ...................................................................................................................... 108 3272 ....................................... 405 note ........................
218 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 1091(b)(2) ...................................................................................................................... 108 3272 ....................................... 405 1126 ........................................ 1092 ................................................................................................................................ 108 3273 ....................................... 419 note ................................................................ 1093 ................................................................................................................................ 108 3273 ....................................... 425 1303 ........................................ 1251(a)(1) ...................................................................................................................... 108 3278 ....................................... 254 ................................................................ 1251(a)(2) ‘‘Sec. 304A(a)’’ ............................................................................................ 108 3278 ....................................... 254b 3502 ........................................ 1251(a)(2) ‘‘Sec. 304A(b)’’ ............................................................................................ 108 3279 ....................................... 254b 3503 ........................................ 1251(a)(2) ‘‘Sec. 304A(c)’’ ............................................................................................ 108 3280 ....................................... 254b 3504 ........................................ 1251(a)(2) ‘‘Sec. 304A(d)’’ ............................................................................................ 108 3281 ....................................... 254b 3505 ........................................ 1251(a)(2) ‘‘Sec. 304A(e)’’ ............................................................................................ 108 3282 ....................................... 254b 3506 ........................................ 1251(a)(2) ‘‘Sec. 304A(f)’’ ............................................................................................. 108 3283 ....................................... 254b 3507 ........................................ 1251(a)(2) ‘‘Sec. 304A(g)’’ ............................................................................................ 108 3283 ....................................... 254b 3508 ........................................ 1251(a)(2) ‘‘Sec. 304A(i)’’ ............................................................................................. 108 3284 ....................................... 254b 3501 ........................................ 1251(b) ........................................................................................................................... 108 3284 ....................................... 254b ................................................................ 1252 ................................................................................................................................ 108 3284 ....................................... 253e ................................................................ 1551 ‘‘Sec. 309(c)(1)’’ .................................................................................................... 108 3298 ....................................... 259 110 ........................................ 1551 ‘‘Sec. 309(c)(2)’’ .................................................................................................... 108 3299 ....................................... 259 111 ........................................ 1551 ‘‘Sec. 309(c)(3)’’ .................................................................................................... 108 3299 ....................................... 259 113 ........................................ 1551 ‘‘Sec. 309(c)(4)’’ .................................................................................................... 108 3299 ....................................... 259 106 ........................................ 1551 ‘‘Sec. 309(c)(5)’’ .................................................................................................... 108 3299 ....................................... 259 112 ........................................ 1551 ‘‘Sec. 309(c)(6)’’ .................................................................................................... 108 3299 ....................................... 259 115 ........................................ 1551 ‘‘Sec. 309(c)(7)’’ .................................................................................................... 108 3299 ....................................... 259 108 ........................................ 1551 ‘‘Sec. 309(c)(8), (9)’’ ............................................................................................. 108 3299 ....................................... 259 107 ........................................ 1551 ‘‘Sec. 309(c)(10)’’ .................................................................................................. 108 3299 ....................................... 259 114 ........................................ 1551 ‘‘Sec. 309(c)(11)’’ .................................................................................................. 108 3299 ....................................... 259 103 ........................................ 1551 ‘‘Sec. 309(c)(12)’’ .................................................................................................. 108 3299 ....................................... 259 109 ........................................ 1551 ‘‘Sec. 309(c)(13)’’ .................................................................................................. 108 3299 ....................................... 259 102 ........................................ 1551 ‘‘Sec. 309(c)(14)’’ .................................................................................................. 108 3299 ....................................... 259 104 ........................................ 1551 ‘‘Sec. 309(d)’’ ........................................................................................................ 108 3299 ....................................... 259 3101 ........................................ 1551 ‘‘Sec. 309(e)’’ ........................................................................................................ 108 3299 ....................................... 259 105 ........................................ 1552 ................................................................................................................................ 108 3299 ....................................... 261 3103 ........................................ 1553 ................................................................................................................................ 108 3300 ....................................... 262 4701 ........................................ 2051(a)(1) ...................................................................................................................... 108 3303 ....................................... 255 ................................................................ 2051(a)(2) ...................................................................................................................... 108 3304 ....................................... 255 4501 ........................................ 2051(a)(3) ...................................................................................................................... 108 3304 ....................................... 255 4502 ........................................ 2051(a)(4) ...................................................................................................................... 108 3304 ....................................... 255 4503 ........................................ 2051(a)(5) ...................................................................................................................... 108 3304 ....................................... 255 4502, 4503 
219 

•HR 4320 IH 

........................................ 2051(b) ........................................................................................................................... 108 3304 ....................................... 255 4502 ........................................ 2051(c) ........................................................................................................................... 108 3304 ....................................... 255 4501 ........................................ 2051(d) ........................................................................................................................... 108 3304 ....................................... 255 4503 ........................................ 2051(e) ‘‘Sec. 305(e)’’ .................................................................................................... 108 3304 ....................................... 255 4504 ........................................ 2051(e) ‘‘Sec. 305(f)’’ .................................................................................................... 108 3304 ....................................... 255 4505 ........................................ 2051(e) ‘‘Sec. 305(g)’’ .................................................................................................... 108 3305 ....................................... 255 4506 ........................................ 2051(f) ............................................................................................................................ 108 3306 ....................................... 255 note ................................................................ 2151 ‘‘Sec. 306(a)–(d)’’ ................................................................................................. 108 3309 ....................................... 256 4303 ........................................ 2151 ‘‘Sec. 306(e)’’ ........................................................................................................ 108 3310 ....................................... 256 4304 ........................................ 2151 ‘‘Sec. 306(f)’’ ......................................................................................................... 108 3312 ....................................... 256 4305 ........................................ 2151 ‘‘Sec. 306(g)’’ ........................................................................................................ 108 3313 ....................................... 256 4306 ........................................ 2151 ‘‘Sec. 306(h)’’ ........................................................................................................ 108 3313 ....................................... 256 4307 ........................................ 2151 ‘‘Sec. 306(i)’’ ......................................................................................................... 108 3313 ....................................... 256 4308 ........................................ 2151 ‘‘Sec. 306(j)’’ ......................................................................................................... 108 3313 ....................................... 256 4309 ........................................ 2151 ‘‘Sec. 306(k)’’ ........................................................................................................ 108 3313 ....................................... 256 4310 ........................................ 2151 ‘‘Sec. 306(l)(1)’’ .................................................................................................... 108 3315 ....................................... 256 4301 ........................................ 2151 ‘‘Sec. 306(l)(2)’’ .................................................................................................... 108 3315 ....................................... 256 4302 ........................................ 2191 ................................................................................................................................ 108 3315 ....................................... 420 ................................................................ 2251(a) ........................................................................................................................... 108 3318 ....................................... 254d 4706 ........................................ 2251(b) ........................................................................................................................... 108 3320 ....................................... 254 ................................................................ 2351(a)(1) ...................................................................................................................... 108 3322 ....................................... 605 6903 ........................................ 2351(b) ........................................................................................................................... 108 3322 ....................................... 605 6903 ........................................ 2351(c) ........................................................................................................................... 108 3322 ....................................... 607 6906 ........................................ 2351(d) ........................................................................................................................... 108 3322 ....................................... 608 6906 ........................................ 2351(e), 2352 ................................................................................................................. 108 3322 ....................................... 605 6903 ........................................ 2354 ................................................................................................................................ 108 3323 ....................................... 609 6907 ........................................ 2451 ................................................................................................................................ 108 3324 ....................................... 15 6305 ........................................ 2452 ................................................................................................................................ 108 3326 ....................................... 20 ................................................................ 2453 ................................................................................................................................ 108 3326 ....................................... 422 1502 ........................................ 4001 ................................................................................................................................ 108 3338 ....................................... 403 133 ........................................ 4003 ................................................................................................................................ 108 3338 ....................................... 252a 3102 ........................................ 4101 ................................................................................................................................ 108 3339 ....................................... 429 1905 ........................................ 4103(a) ........................................................................................................................... 108 3341 ....................................... 252a 3102 ........................................ 4103(b) ........................................................................................................................... 108 3341 ....................................... 253g 4704 ........................................ 4103(c) ........................................................................................................................... 108 3341 ....................................... 254 3901 ........................................ 4103(d) ........................................................................................................................... 108 3341 ....................................... 254d 4706 ........................................ 4104(a) ........................................................................................................................... 108 3341 ....................................... 57 8703 ........................................ 4104(d) ........................................................................................................................... 108 3342 ....................................... 701 8102 ........................................ 4201(a) ........................................................................................................................... 108 3342 ....................................... 427 1901 ........................................ 4201(b), (c) .................................................................................................................... 108 3344 ....................................... 416 1707 ........................................ 4202(a)–(c) ..................................................................................................................... 108 3344 ....................................... 416 1707 ........................................ 4203(b) ........................................................................................................................... 108 3346 ....................................... 252b 3102 ........................................ 4301(a) ........................................................................................................................... 108 3346 ....................................... 428 1902 ........................................ 4301(b) ........................................................................................................................... 108 3347 ....................................... 10a 8302 ........................................ 4301(c) ........................................................................................................................... 108 3347 ....................................... 10a note ................................................................ 4402(a) ........................................................................................................................... 108 3348 ....................................... 253 3304 
220 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 4402(b) ........................................................................................................................... 108 3348 ....................................... 253a 3305 ........................................ 4402(c) ........................................................................................................................... 108 3349 ....................................... 254 3905 ........................................ 4403 ................................................................................................................................ 108 3349 ....................................... 417 1710 ........................................ 5051(a) ........................................................................................................................... 108 3351 ....................................... 263 3104 ........................................ 5051(b) ........................................................................................................................... 108 3351 ....................................... 405 1131 ........................................ 5051(d) ........................................................................................................................... 108 3352 ....................................... 263 note ................................................................ 5061 ................................................................................................................................ 108 3352 ....................................... 413 note ................................................................ 5091 ................................................................................................................................ 108 3361 ....................................... 405 1122 ........................................ 5092 ................................................................................................................................ 108 3362 ....................................... 418b 1706 ........................................ 6002(a) ........................................................................................................................... 108 3363 ....................................... 419 1708 ........................................ 6003 ................................................................................................................................ 108 3364 ....................................... 415 ................................................................ 6004 ................................................................................................................................ 108 3364 ....................................... 22 6306 ........................................ 6006 ................................................................................................................................ 108 3365 ....................................... 265 4705 ........................................ 7108 ................................................................................................................................ 108 3378 ....................................... 405 1122 ........................................ 7201(1) ........................................................................................................................... 108 3378 ....................................... 35 6501, 6502 ........................................ 7201(2), (3) .................................................................................................................... 108 3378 ....................................... 43a 6509 ........................................ 7201(4) ........................................................................................................................... 108 3378 ....................................... 43b 6510 ........................................ 7203(b)(1)(A) ................................................................................................................. 108 3380 ....................................... 253 3303 ........................................ 7203(b)(1)(B) ................................................................................................................. 108 3380 ....................................... 253 3106 ........................................ 7203(b)(2) ...................................................................................................................... 108 3381 ....................................... 266 3106 ........................................ 7205 ................................................................................................................................ 108 3382 ....................................... 258 ................................................................ 7206(a) ........................................................................................................................... 108 3382 ....................................... 10b–1 ................................................................ 8001(a) ‘‘Sec. 4(12)’’ ..................................................................................................... 108 3385 ....................................... 403 103 ........................................ 8001(a) ‘‘Sec. 4(13)’’ ..................................................................................................... 108 3385 ....................................... 403 109 ........................................ 8001(a) ‘‘Sec. 4(14)’’ ..................................................................................................... 108 3386 ....................................... 403 104 ........................................ 8001(a) ‘‘Sec. 4(15)’’ ..................................................................................................... 108 3386 ....................................... 403 102 ........................................ 8001(b)(1), (2) ............................................................................................................... 108 3386 ....................................... 403 106–108, 110– 

115, 131–133 

........................................ 8001(b)(3) ...................................................................................................................... 108 3386 ....................................... 403 106, 108, 

110–112, 115, 

131, 132 

........................................ 8001(b)(4) ...................................................................................................................... 108 3386 ....................................... 403 107, 113, 114 ........................................ 8002 ................................................................................................................................ 108 3386 ....................................... 264 note 3306 ........................................ 8003(a) ........................................................................................................................... 108 3388 ....................................... 430 1906 ........................................ 8003(b) ........................................................................................................................... 108 3389 ....................................... 430 note ........................
221 

•HR 4320 IH 

........................................ 8201 ................................................................................................................................ 108 3394 ....................................... 264 3306 ........................................ 8202 ‘‘Sec. 314A (‘commercial item’)’’ .......................................................................... 108 3394 ....................................... 264a 103 ........................................ 8202 ‘‘Sec. 314A (‘nondevelopmental item’)’’ ................................................................ 108 3394 ....................................... 264a 109 ........................................ 8202 ‘‘Sec. 314A (‘component’)’’ ................................................................................... 108 3394 ....................................... 264a 104 ........................................ 8202 ‘‘Sec. 314A (‘commercial component’)’’ ................................................................ 108 3394 ....................................... 264a 102 ........................................ 8203 ................................................................................................................................ 108 3394 ....................................... 264b 3306 ........................................ 8204(a) ........................................................................................................................... 108 3396 ....................................... 253g 4704 ........................................ 8204(b) ........................................................................................................................... 108 3396 ....................................... 254 3901 ........................................ 8301(c)(1) ....................................................................................................................... 108 3397 ....................................... 57 8703 ........................................ 8301(c)(2) ....................................................................................................................... 108 3397 ....................................... 58 8704 ........................................ 8301(d) ........................................................................................................................... 108 3397 ....................................... 422 1502 ........................................ 8301(e) ........................................................................................................................... 108 3397 ....................................... 423 2101–2107 ........................................ 8301(f) ............................................................................................................................ 108 3397 ....................................... 701 8102 ........................................ 8302 ................................................................................................................................ 108 3398 ....................................... 416 1707 ........................................ 8303(a) ........................................................................................................................... 108 3398 ....................................... 418 1704 ........................................ 8303(b) ........................................................................................................................... 108 3398 ....................................... 424 ................................................................ 8305 ................................................................................................................................ 108 3398 ....................................... 264b note ................................................................ 9001(a) ‘‘Sec. 30’’ .......................................................................................................... 108 3399 ....................................... 426 2301 ........................................ 9001(b) ........................................................................................................................... 108 3402 ....................................... 416 1707 ........................................ 9003 ................................................................................................................................ 108 3403 ....................................... 252c 4709 ........................................ 10002 .............................................................................................................................. 108 3404 ....................................... 251 note ................................................................ 10003 .............................................................................................................................. 108 3405 ....................................... 251 note ................................................................ 10005(a)(1) .................................................................................................................... 108 3406 ....................................... 401 note ................................................................ 10005(b)(1) .................................................................................................................... 108 3408 ....................................... 401 note ................................................................ 10005(e) ......................................................................................................................... 108 3408 ....................................... 254 3905 ........................................ 10005(f)(4) ..................................................................................................................... 108 3409 ....................................... 10a note ................................................................ 10005(f)(5) ..................................................................................................................... 108 3409 ....................................... 35 note ................................................................ 10005(f)(6) ..................................................................................................................... 108 3409 ....................................... 46 note ........................

1996 

Feb. 10 .................... 104–106 ............................ 4101(b)(1) ...................................................................................................................... 110 642 ......................................... 253 3106 

........................................ 4101(b)(2) ...................................................................................................................... 110 642 ......................................... 253 3301 ........................................ 4101(c) ........................................................................................................................... 110 642 ......................................... 416 1707 ........................................ 4102(b) ........................................................................................................................... 110 643 ......................................... 253 3303 ........................................ 4103(b) ........................................................................................................................... 110 644 ......................................... 253b 3703 ........................................ 4104(b)(1) ...................................................................................................................... 110 645 ......................................... 253b 3704 ........................................ 4104(b)(2) ...................................................................................................................... 110 645 ......................................... 253b 3307, 3707, 

3708 

........................................ 4104(b)(3) ‘‘Sec. 303B(f)’’ ............................................................................................. 110 645 ......................................... 253b 3705 ........................................ 4104(b)(3) ‘‘Sec. 303B(g)’’ ............................................................................................ 110 645 ......................................... 253b 3704, 3705 ........................................ 4104(b)(3) ‘‘Sec. 303B(h)’’ ............................................................................................ 110 645 ......................................... 253b 3706 ........................................ 4105(b)(1) ...................................................................................................................... 110 647 ......................................... 253m 3308 ........................................ 4201(b)(1) ‘‘Sec. 304A(b)’’ ............................................................................................ 110 651 ......................................... 254b 3503 ........................................ 4201(b)(1) ‘‘Sec. 304A(c)’’ ............................................................................................ 110 651 ......................................... 254b 3504 ........................................ 4201(b)(1) ‘‘Sec. 304A(d)’’ ............................................................................................ 110 652 ......................................... 254b 3505 ........................................ 4201(b)(2)(A) ................................................................................................................. 110 652 ......................................... 254b ........................
222 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 4201(b)(2)(B) ................................................................................................................. 110 652 ......................................... 254b 3501 ........................................ 4202(b)(1) ...................................................................................................................... 110 653 ......................................... 253 3304 ........................................ 4202(b)(2) ...................................................................................................................... 110 653 ......................................... 253a 3305 ........................................ 4202(c) ........................................................................................................................... 110 653 ......................................... 427 1901 ........................................ 4202(d) ........................................................................................................................... 110 654 ......................................... 416 1707 ........................................ 4203(a) ........................................................................................................................... 110 654 ......................................... 431 1907 ........................................ 4204 ................................................................................................................................ 110 655 ......................................... 403 103 ........................................ 4205 ................................................................................................................................ 110 656 ......................................... 422 1502 ........................................ 4301(a)(3) ...................................................................................................................... 110 656 ......................................... 701 8102 ........................................ 4301(b)(2)(A) ................................................................................................................. 110 657 ......................................... 425 1303 ........................................ 4301(c) ........................................................................................................................... 110 658 ......................................... 425 1303 ........................................ 4302(a) ........................................................................................................................... 110 658 ......................................... 413 note ................................................................ 4302(b) ........................................................................................................................... 110 658 ......................................... 427 1901 ........................................ 4304(a) ‘‘Sec. 27(a), (b)’’ ............................................................................................... 110 659 ......................................... 423 2102 ........................................ 4304(a) ‘‘Sec. 27(c)’’ ...................................................................................................... 110 660 ......................................... 423 2103 ........................................ 4304(a) ‘‘Sec. 27(d)’’ ..................................................................................................... 110 660 ......................................... 423 2104 ........................................ 4304(a) ‘‘Sec. 27(e)’’ ...................................................................................................... 110 661 ......................................... 423 2105 ........................................ 4304(a) ‘‘Sec. 27(f)’’ ...................................................................................................... 110 662 ......................................... 423 2101 ........................................ 4304(a) ‘‘Sec. 27(g)’’ ..................................................................................................... 110 663 ......................................... 423 2106 ........................................ 4304(a) ‘‘Sec. 27(h)’’ ..................................................................................................... 110 663 ......................................... 423 2107 ........................................ 4304(b)(4) ...................................................................................................................... 110 664 ......................................... 428 1902 ........................................ 4304(c)(3) ....................................................................................................................... 110 664 ......................................... 428 1902 ........................................ 4305(a)(1) ...................................................................................................................... 110 665 ......................................... 404 1101 ........................................ 4305(a)(2) ...................................................................................................................... 110 665 ......................................... 401, 402 ................................................................ 4305(b) ........................................................................................................................... 110 665 ......................................... 407 ................................................................ 4305(c)(1) ....................................................................................................................... 110 665 ......................................... 409 ................................................................ 4305(c)(2) ....................................................................................................................... 110 665 ......................................... 410 1101 ........................................ 4306(a) ........................................................................................................................... 110 665 ......................................... 432 1709 ........................................ 4307(a)(1) ...................................................................................................................... 110 666 ......................................... 433 1703 ........................................ 4307(b) ........................................................................................................................... 110 668 ......................................... 405 1122 ........................................ 4310 ................................................................................................................................ 110 670 ......................................... 416 1707 ........................................ 4311 ................................................................................................................................ 110 671 ......................................... 428 1902 ........................................ 4321(a)(1) ...................................................................................................................... 110 671 ......................................... 253l 3902 ........................................ 4321(a)(3) ...................................................................................................................... 110 671 ......................................... 254b note ................................................................ 4321(a)(4) ...................................................................................................................... 110 671 ......................................... 255 4504–4506 ........................................ 4321(a)(6), (7) ............................................................................................................... 110 671 ......................................... 605 6903 
223 

•HR 4320 IH 

........................................ 4321(a)(9) ...................................................................................................................... 110 671 ......................................... 418b 1706 ........................................ 4321(a)(11) .................................................................................................................... 110 671 ......................................... 10a note ................................................................ 4321(e)(2) ....................................................................................................................... 110 674 ......................................... 253 3303 ........................................ 4321(e)(3) ....................................................................................................................... 110 675 ......................................... 254b 3504 ........................................ 4321(e)(4) ....................................................................................................................... 110 675 ......................................... 254b 3505 ........................................ 4321(e)(5) ....................................................................................................................... 110 675 ......................................... 254d 4706 ........................................ 4321(e)(6) ....................................................................................................................... 110 675 ......................................... 257 4701 ........................................ 4321(e)(7) ....................................................................................................................... 110 675 ......................................... 264a ................................................................ 4321(e)(8) ....................................................................................................................... 110 675 ......................................... 265 4705 ........................................ 4321(e)(9) ....................................................................................................................... 110 675 ......................................... 266 3106 ........................................ 4321(f)(1)(A) .................................................................................................................. 110 675 ......................................... 43b 6510 ........................................ 4321(f)(1)(B) (related to redesignation of § 11 to § 12) ............................................... 110 675 ......................................... 44 ................................................................ 4321(f)(1)(B) (related to redesignation of § 12 to § 13) ............................................... 110 675 ......................................... 45 6502 ........................................ 4321(f)(1)(B) (related to redesignation of § 13 to § 14) ............................................... 110 675 ......................................... 35 note ................................................................ 4321(f)(2) ....................................................................................................................... 110 675 ......................................... 43a 6509 ........................................ 4321(g) ........................................................................................................................... 110 675 ......................................... 57 8703 ........................................ 4321(h)(1), (2) ............................................................................................................... 110 675 ......................................... 405 1122 ........................................ 4321(h)(3) ...................................................................................................................... 110 675 ......................................... 416 1707 ........................................ 4321(h)(4) ...................................................................................................................... 110 675 ......................................... 422 1502 ........................................ 4321(i)(9) ....................................................................................................................... 110 676 ......................................... 15 6305 ........................................ 4321(i)(10) ..................................................................................................................... 110 676 ......................................... 20a ................................................................ 4321(i)(11) ..................................................................................................................... 110 676 ......................................... 20b ................................................................ 4321(i)(12) ..................................................................................................................... 110 676 ......................................... 22 6306 ........................................ 4321(i)(13) ..................................................................................................................... 110 677 ......................................... 701 8102 ........................................ 4322(a)(1) ...................................................................................................................... 110 677 ......................................... 405 1121 ........................................ 4322(a)(2) ...................................................................................................................... 110 677 ......................................... 421 1301 ........................................ 4322(b)(4) ...................................................................................................................... 110 677 ......................................... 11 6301 ........................................ 4322(b)(5) ...................................................................................................................... 110 677 ......................................... 601 6901 ........................................ 4322(b)(6) ...................................................................................................................... 110 677 ......................................... 605 6903 ........................................ 4322(b)(7) ...................................................................................................................... 110 677 ......................................... 612 6908 ........................................ 4402 ................................................................................................................................ 110 678 ......................................... 251 note ................................................................ 5202(a) ........................................................................................................................... 110 690 ......................................... 434 2307 ........................................ 5607(c) ........................................................................................................................... 110 701 ......................................... 253b 3708 ........................................ 5607(d) ........................................................................................................................... 110 702 ......................................... 405 1130 

Sept. 23 ................... 104–201 ............................ 807(b) ............................................................................................................................. 110 2606 ....................................... 259 3101 

........................................ 808(b) ............................................................................................................................. 110 2607 ....................................... 254d 4706 ........................................ 821(b) ............................................................................................................................. 110 2609 ....................................... 253b 4702 ........................................ 822 .................................................................................................................................. 110 2609 ....................................... 421 1302 ........................................ 827 .................................................................................................................................. 110 2611 ....................................... 10b–3 8305 ........................................ 1074(b)(6) (related to effective date) ............................................................................. 110 2660 ....................................... 427 note ................................................................ 1074(b)(6) (less effective date) ...................................................................................... 110 2660 ....................................... 427 1901 ........................................ 1074(b)(7) (related to effective date) ............................................................................. 110 2660 ....................................... 253b note ................................................................ 1074(b)(7) (less effective date) ...................................................................................... 110 2660 ....................................... 253b 3708 ........................................ 1074(d)(1) ...................................................................................................................... 110 2660 ....................................... 434 2307 ........................................ 1074(f)(1) ....................................................................................................................... 110 2661 ....................................... 405 1121 ........................................ 1074(f)(2) ....................................................................................................................... 110 2661 ....................................... 413 1124 
224 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 1074(f)(3) ....................................................................................................................... 110 2661 ....................................... 421 1302 

Oct. 19 .................... 104–316 ............................ 121(a) ............................................................................................................................. 110 3836 ....................................... 116 ........................

........................................ 121(b) ............................................................................................................................. 110 3836 ....................................... 118 ................................................................ 121(c) ............................................................................................................................. 110 3836 ....................................... 257 4701 ........................................ 202(u) ............................................................................................................................. 110 3845 ....................................... 256a 4707 

104–320 ............................ 6 ...................................................................................................................................... 110 3871 ....................................... 605 6903 

........................................ 7(a)(2) ............................................................................................................................ 110 3871 ....................................... 253 3303 ........................................ 11(c)(2) ........................................................................................................................... 110 3873 ....................................... 253 3303 

1997 

June 12 ................... 105–18 .............................. 7004 ................................................................................................................................ 111 192 ......................................... 253l–1 3904 Nov. 18 .................... 105–85 .............................. 808(b)(1) ........................................................................................................................ 111 1836 ....................................... 256 4304 

........................................ 808(b)(2) ........................................................................................................................ 111 1836 ....................................... 256 4301 ........................................ 808(c)(1) ......................................................................................................................... 111 1837 ....................................... 435 1127 ........................................ 808(d) ............................................................................................................................. 111 1838 ....................................... 435 note ................................................................ 808(e) ............................................................................................................................. 111 1838 ....................................... 435 note ................................................................ 809 .................................................................................................................................. 111 1838 ....................................... 702 8103 ........................................ 841(d) ............................................................................................................................. 111 1843 ....................................... 421 1302 ........................................ 846 .................................................................................................................................. 111 1845 ....................................... 10b–3 8305 ........................................ 850(a) ............................................................................................................................. 111 1847 ....................................... 426 2301 ........................................ 850(b) ............................................................................................................................. 111 1848 ....................................... 426a ................................................................ 850(c) ............................................................................................................................. 111 1848 ....................................... 426a note ................................................................ 850(d) ............................................................................................................................. 111 1848 ....................................... 427 1901 ........................................ 850(e)(2) ......................................................................................................................... 111 1849 ....................................... 416 1707 ........................................ 850(f)(1) ......................................................................................................................... 111 1849 ....................................... 413 note ................................................................ 850(f)(4)(A) .................................................................................................................... 111 1850 ....................................... 252c 4709 ........................................ 850(f)(4)(B) ................................................................................................................... 111 1850 ....................................... 253 3304 ........................................ 851(a) ............................................................................................................................. 111 1851 ....................................... 263 3104 ........................................ 851(b) ............................................................................................................................. 111 1851 ....................................... 405 1131 ........................................ 1073(g)(1) ...................................................................................................................... 111 1906 ....................................... 259 3101 ........................................ 1073(g)(2)(B) ................................................................................................................. 111 1906 ....................................... 405 1122 ........................................ 1073(g)(2)(C) ................................................................................................................. 111 1906 ....................................... 431 1907 ........................................ 1073(g)(3) ...................................................................................................................... 111 1906 ....................................... 605 6903 

Dec. 2 ...................... 105–135 ............................ 604(f)(1) ......................................................................................................................... 111 2634 ....................................... 405 1122 

........................................ 604(f)(2) ......................................................................................................................... 111 2634 ....................................... 417a 1711 
225 

•HR 4320 IH 

1998 

Oct. 17 .................... 105–261 ............................ 804(b) ............................................................................................................................. 112 2083 ....................................... 256 4301 

........................................ 804(c)(1) ......................................................................................................................... 112 2083 ....................................... 435 1127 ........................................ 805(b) ............................................................................................................................. 112 2083 ....................................... 254b 3502 ........................................ 808(b) ............................................................................................................................. 112 2085 ....................................... 254b 3505 ........................................ 812 .................................................................................................................................. 112 2086 ....................................... 10b–3 8305 ........................................ 1069(d)(1) ...................................................................................................................... 112 2136 ....................................... 416 1707 

Oct. 21 .................. 105–277 ............................ 308(a) ............................................................................................................................. 112 2681–879 ............................... 436 2308 Nov. 10 .................... 105–362 ............................ 1401(d) ........................................................................................................................... 112 3294 ....................................... 10b note ........................

1999 

Sept. 29 ................... 106–57 .............................. 207 .................................................................................................................................. 113 423 ......................................... 253l–2 3904 Oct. 5 ...................... 106–65 .............................. 802(a), (b) ...................................................................................................................... 113 701 ......................................... 422 1502 

........................................ 802(c) ............................................................................................................................. 113 701 ......................................... 422 note ................................................................ 802(e) ............................................................................................................................. 113 702 ......................................... 422 note ................................................................ 802(g) ............................................................................................................................. 113 702 ......................................... 422 note ................................................................ 802(i) .............................................................................................................................. 113 702 ......................................... 422 note ................................................................ 804 .................................................................................................................................. 113 704 ......................................... 253h note 4104 ........................................ 805 .................................................................................................................................. 113 705 ......................................... 403 103 

2000 

Oct. 30 .................... 106–398 ............................ 1 [[div. A], title VIII, § 810(a), (b)] .............................................................................. 114 1654A–209 ............................ 416 1707 

........................................ 1 [[div. A], title VIII, § 810(d)] ..................................................................................... 114 1654A–210 ............................ 426 2301 

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 

2002 

Nov. 25 .................... 107–296 ............................ 833(c)(2) ......................................................................................................................... 116 2226 ....................................... 416 1707 Dec. 17 .................... 107–347 ............................ 209(d)(4) ........................................................................................................................ 116 2930 ....................................... 423 2102 

........................................ 210(b) ............................................................................................................................. 116 2934 ....................................... 266a 3906 

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 3904 Sept. 30 ................... 108–87 .............................. 8033 ................................................................................................................................ 117 1079 ....................................... 10b–2 8304 Nov. 24 .................... 108–136 ............................ 1411 ................................................................................................................................ 117 1663 ....................................... 403 101 

........................................ 1412(a) ........................................................................................................................... 117 1664 ....................................... 433 note 1703 ........................................ 1412(b) ........................................................................................................................... 117 1664 ....................................... 433 1703 ........................................ 1412(c) ........................................................................................................................... 117 1665 ....................................... 433 note 1703 ........................................ 1413 ................................................................................................................................ 117 1665 ....................................... 433 note 1703 ........................................ 1414 ................................................................................................................................ 117 1666 ....................................... 433 note 1128 ........................................ 1421(a)(1) ...................................................................................................................... 117 1666 ....................................... 414 1702 
226 

•HR 4320 IH 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date Chapter or Public Law Section 

Statutes at Large U.S. Code (title 41 unless otherwise specified) 

Volume Page Existing Proposed 

........................................ 1422(a) ‘‘Sec. 16A(a)–(c)’’ ............................................................................................. 117 1668 ....................................... 414b 1311 ........................................ 1422(a) ‘‘Sec. 16A(d), (e)’’ ............................................................................................ 117 1668 ....................................... 414b 1312 ........................................ 1428 ................................................................................................................................ 117 1670 ....................................... 253a note 3305 ........................................ 1431(a) ........................................................................................................................... 117 1671 ....................................... 437 2309 ........................................ 1431(b) ........................................................................................................................... 117 1671 ....................................... 405 note 1129 ........................................ 1431(d)(2) ...................................................................................................................... 117 1672 ....................................... 436 2308 ........................................ 1432 ................................................................................................................................ 117 1672 ....................................... 264 note 3306 ........................................ 1433 ................................................................................................................................ 117 1673 ....................................... 403 103 ........................................ 1441 ................................................................................................................................ 117 1673 ....................................... 428a note 1904 ........................................ 1443(a)(1) ...................................................................................................................... 117 1675 ....................................... 428a 1903 

Dec. 15 .................... 108–178 ............................ 2(b)(1) ............................................................................................................................ 117 2640 ....................................... 251 note ........................
227 

•HR 4320 IH 

Revised Statutes 

Revised Statutes Section 

United States Code (title 41) 

Existing Proposed 

3709 ............................................................................ 5 6101 

3710 ............................................................................ 8 6103 

3732 ............................................................................ 11 6301 

3733 ............................................................................ 12 6303 

3735 ............................................................................ 13 6304 

3736 ............................................................................ 14 6301 

3737 ............................................................................ 15 6305 

3741 ............................................................................ 22 6306 

Æ