143 
(b) LIQUIDATED DAMAGES.—In addition to damages for any other breach 
of the contract, the party responsible for a breach or violation described in 
subsection (a) is liable to the Federal Government for the following liq-
uidated damages: 
(1) An amount equal to the sum of $10 per day for each individual 
under 16 years of age and each incarcerated individual knowingly em-
ployed in the performance of the contract. 
(2) An amount equal to the sum of each underpayment of wages due 
an employee engaged in the performance of the contract, including any 
underpayments arising from deductions, rebates, or refunds. 
(c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition to the 
Federal Government being entitled to damages described in subsection (b), 
the agency of the United States that made the contract may cancel the con-
tract and make open-market purchases or make other contracts for the com-
pletion of the original contract, charging any additional cost to the original 
contractor. 
(d) RECOVERY OF AMOUNTS DUE.—An amount due the Federal Govern-
ment because of a breach or violation described in subsection (a) may be 
withheld from any amounts owed the contractor under any contract under 
section 6502 of this title or may be recovered in a suit brought by the At-
torney General. 
(e) EMPLOYEE REIMBURSEMENT FOR UNDERPAYMENT OF WAGES.—An 
amount withheld or recovered under subsection (d) that is based on an un-
derpayment of wages as described in subsection (b)(2) shall be held in a 
special deposit account. On order of the Secretary, the amount shall be paid 
directly to the underpaid employee on whose account the amount was with-
held or recovered. However, an employee’s claim for payment under this 
subsection may be entertained only if made within one year from the date 
of actual notice to the contractor of the withholding or recovery. 
§ 6504. Three-year prohibition on new contracts in case of 
breach or violation 
(a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to 
each agency of the United States a list containing the names of persons 
found by the Secretary to have breached or violated a representation or stip-
ulation included in a contract under section 6502 of this title. 
(b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends oth-
erwise, a contract described in section 6502 of this title may not be awarded 
to a person named on the list under subsection (a), or to a firm, corpora-
tion, partnership, or association in which the person has a controlling inter-
est, until 3 years have elapsed from the date of the determination by the 
Secretary that a breach or violation occurred. 
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§ 6505. Exclusions 
(a) ITEMS AVAILABLE IN THE OPEN MARKET.—This chapter does not 
apply to the purchase of materials, supplies, articles, or equipment that may 
usually be bought in the open market. 
(b) PERISHABLES AND AGRICULTURAL PRODUCTS.—This chapter does 
not apply to any of the following: 
(1) Perishables, including dairy, livestock and nursery products. 
(2) Agricultural or farm products processed for first sale by the 
original producers. 
(3) Contracts made by the Secretary of Agriculture for the purchase 
of agricultural commodities or products of agricultural commodities. 
(c) CARRIAGE OF FREIGHT OR PERSONNEL.—This chapter may not be 
construed to apply to— 
(1) the carriage of freight or personnel by vessel, airplane, bus, 
truck, express, or railway line where published tariff rates are in effect; 
or 
(2) common carriers subject to the Communications Act of 1934 (47 
U.S.C. 151 et seq.). 
§ 6506. Administrative provisions 
(a) IN GENERAL.—The Secretary shall administer this chapter. 
(b) REGULATIONS.—The Secretary may make, amend, and rescind regu-
lations as necessary to carry out this chapter. 
(c) USE OF GOVERNMENT OFFICERS AND EMPLOYEES.—The Secretary 
shall use Federal officers and employees and, with a State’s consent, State 
and local officers and employees as the Secretary finds necessary to assist 
in the administration of this chapter. 
(d) APPOINTMENTS.—The Secretary shall appoint an administrative offi-
cer and attorneys, experts, and other employees from time to time as the 
Secretary finds necessary for the administration of this chapter. The ap-
pointments are subject to chapter 51 and subchapter III of chapter 53 of 
title 5 and other law applicable to the employment and compensation of offi-
cers and employees of the Federal Government. 
(e) INVESTIGATIONS.—The Secretary, or an authorized representative of 
the Secretary, may make investigations and findings as provided in this 
chapter and may, in any part of the United States, prosecute an inquiry 
necessary to carry out this chapter. 
§ 6507. Hearing authority and procedures 
(a) RECORD
AND HEARING REQUIREMENTS
FOR WAGE DETERMINA-
TIONS.—A wage determination under section 6502(1) of this title shall be 
made on the record after opportunity for a hearing. 
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(b) AUTHORITY TO HOLD HEARINGS.—The Secretary or an impartial 
representative designated by the Secretary may hold hearings when there is 
a complaint of breach or violation of a representation or stipulation included 
in a contract under section 6502 of this title. The Secretary may initiate 
hearings on the Secretary’s own motion or on the application of a person 
affected by the ruling of an agency of the United States relating to a pro-
posal or contract under this chapter. 
(c) ORDERS TO COMPEL TESTIMONY.—The Secretary or an impartial 
representative designated by the Secretary may issue orders requiring wit-
nesses to attend hearings held under this section and to produce evidence 
and testify under oath. Witnesses shall be paid fees and mileage at the same 
rates as witnesses in courts of the United States. 
(d) ENFORCEMENT OF ORDERS.—If a person refuses or fails to obey an 
order issued under subsection (c), the Secretary or an impartial representa-
tive designated by the Secretary may bring an action to enforce the order 
in a district court of the United States or in the district court of a territory 
or possession of the United States. A court has jurisdiction to enforce the 
order if the inquiry is being carried out within the court’s judicial district 
or if the person is found or resides or transacts business within the court’s 
judicial district. The court may issue an order requiring the person to obey 
the order issued under subsection (c), and the court may punish any further 
refusal or failure as contempt of court. 
(e) FINDINGS OF FACT.—After notice and a hearing, the Secretary or an 
impartial representative designated by the Secretary shall make findings of 
fact. The findings are conclusive for agencies of the United States. If sup-
ported by a preponderance of the evidence, the findings are conclusive in 
any court of the United States. 
(f) DECISIONS.—The Secretary or an impartial representative designated 
by the Secretary may make decisions, based on findings of fact, that are 
considered necessary to enforce this chapter. 
§ 6508. Authority to make exceptions 
(a) DUTY OF THE SECRETARY TO MAKE EXCEPTIONS.—When the head 
of an agency of the United States makes a written finding that the inclusion 
of representations or stipulations under section 6502 of this title in a pro-
posal or contract will seriously impair the conduct of Federal Government 
business, the Secretary shall make exceptions, in specific cases or otherwise, 
when justice or the public interest will be served. 
(b) AUTHORITY
OF
THE SECRETARY TO MODIFY EXISTING CON-
TRACTS.—When an agency of the United States and a contractor jointly 
recommend, the Secretary may modify the terms of an existing contract 
with respect to minimum wages and maximum hours of labor as the Sec-
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retary finds necessary and proper in the public interest or to prevent injus-
tice and undue hardship. 
(c) AUTHORITY OF THE SECRETARY TO ALLOW LIMITATIONS, VARI-
ATIONS, TOLERANCES, AND EXEMPTIONS.—The Secretary may provide rea-
sonable limitations and may prescribe regulations to allow reasonable vari-
ations, tolerances, and exemptions in the application of this chapter to con-
tractors, including with respect to minimum wages and maximum hours of 
labor. 
(d) RATE OF PAY FOR OVERTIME.—When the Secretary permits an in-
crease in the maximum hours of labor stipulated in a contract, the Sec-
retary shall set a rate of pay for overtime. The overtime rate must be at 
least one and one-half times the basic hourly rate. 
(e) AUTHORITY OF THE PRESIDENT TO SUSPEND.—The President may 
suspend any of the representations and stipulations contained in section 
6502 of this title whenever, in the President’s judgment, suspension is in 
the public interest. 
§ 6509. Other procedures 
(a) APPLICABILITY
OF CERTAIN ADMINISTRATIVE PROVISIONS.—Not-
withstanding section 553 of title 5, subchapter II of chapter 5 and chapter 
7 of title 5 are applicable in the administration of sections 6501 to 6507 
and 6511 of this title. 
(b) JUDICIAL REVIEW IN GENERAL.—Notwithstanding the inclusion of 
representations and stipulations in a contract under section 6502 of this 
title, an interested person has the right of judicial review of any legal ques-
tion which might otherwise be raised, including wage determinations and the 
interpretation of the terms ‘‘locality’’ and ‘‘open market’’. 
(c) JUDICIAL REVIEW OF WAGE DETERMINATIONS.—A person adversely 
affected or aggrieved by a wage determination under section 6502(1) of this 
title has the right of judicial review of the determination, or of the applica-
bility of the determination, within 90 days after the determination is made, 
in the manner provided by chapter 7 of title 5. A person adversely affected 
or aggrieved by a wage determination is deemed to include a person in an 
industry to which the determination applies that is a supplier of materials, 
supplies, articles, or equipment that are purchased or intended to be pur-
chased by the Federal Government from any source. 
§ 6510. Manufacturers and regular dealers 
(a) PRESCRIBING STANDARDS.—The Secretary may prescribe, in regula-
tions, standards for determining whether a contractor is a manufacturer or 
regular dealer with respect to materials, supplies, articles, or equipment to 
be manufactured or furnished under, or used in the performance of, a con-
tract entered into by an agency of the United States. 
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