H. R. 1107—132 
factories, buildings, or surroundings, or under working condi-
tions, that are unsanitary, hazardous, or dangerous to the 
health and safety of employees engaged in the performance 
of the contract. Compliance with the safety, sanitary, and fac-
tory inspection laws of the State in which the work or part 
of the work is to be performed is prima facie evidence of 
compliance with this paragraph. 
§ 6503. Breach or violation of required contract terms 
(a) APPLICABLE BREACH OR VIOLATION.—This section applies in 
case of breach or violation of a representation or stipulation included 
in a contract under section 6502 of this title. 
(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 liquidated damages: 
(1) An amount equal to the sum of $10 per day for each 
individual under 16 years of age and each incarcerated indi-
vidual knowingly employed 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 contract and make open-market purchases 
or make other contracts for the completion of the original contract, 
charging any additional cost to the original contractor. 
(d) RECOVERY OF AMOUNTS DUE.—An amount due the Federal 
Government 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 Attorney General. 
(e) EMPLOYEE REIMBURSEMENT FOR UNDERPAYMENT OF WAGES.— 
An amount withheld or recovered under subsection (d) that is 
based on an underpayment 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 withheld 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 dis-
tribute 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 stipulation included in a contract under 
section 6502 of this title. 
(b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends 
otherwise, 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, corporation, partnership, or association in which 
the person has a controlling interest, until 3 years have elapsed 
from the date of the determination by the Secretary that a breach 
or violation occurred.