169
(F) imposing a sanction on, or requiring the satisfactory partici-
pation in a drug abuse assistance or rehabilitation program by, 
any employee who is convicted, as required by section 8104 of this 
title; and 
(G) making a good faith effort to continue to maintain a drug-
free workplace through implementation of subparagraphs (A)–(F). 
(2) INDIVIDUALS.—A Federal agency shall not make a grant to an 
individual unless the individual agrees not to engage in the unlawful 
manufacture, distribution, dispensation, possession, or use of a con-
trolled substance in conducting an activity with the grant. 
(b) SUSPENSION, TERMINATION, OR DEBARMENT OF GRANTEE.—
(1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBARMENT.—
Payment under a grant awarded by a Federal agency may be sus-
pended and the grant may be terminated, and the grantee may be sus-
pended or debarred, in accordance with the requirements of this sec-
tion, if the head of the agency or the official designee of the head of 
the agency determines in writing that—
(A) the grantee is violating, or has violated, the requirements 
of subparagraph (A), (B), (C), (D), (E), or (F) of subsection 
(a)(1); or 
(B) the number of employees of the grantee who have been con-
victed of violations of criminal drug statutes for violations occur-
ring in the workplace indicates that the contractor has failed to 
make a good faith effort to provide a drug-free workplace as re-
quired by subsection (a)(1). 
(2) CONDUCT
OF
SUSPENSION, TERMINATION, AND
DEBARMENT 
PROCEEDINGS.—A suspension of payments, termination, or suspension 
or debarment proceeding subject to this subsection shall be conducted 
in accordance with applicable law, including Executive Order 12549 or 
any superseding Executive order and any regulations prescribed to im-
plement the law or Executive order. 
(3) EFFECT OF DEBARMENT.—A grantee debarred under this sub-
section is ineligible for award of a grant by a Federal agency, and shall 
not participate in a future grant by a Federal agency for a period spec-
ified in the final decision issued under this subsection, not to exceed 
5 years. 
§ 8104. Employee sanctions and remedies 
Within 30 days after receiving notice from an employee of a conviction 
pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) of this title, a 
contractor or grantee shall—
170
(1) take appropriate personnel action against the employee, up to 
and including termination; or 
(2) require the employee to satisfactorily participate in a drug abuse 
assistance or rehabilitation program approved for those purposes by a 
Federal, State, or local health, law enforcement, or other appropriate 
agency. 
§ 8105. Waiver 
(a) IN GENERAL.—The head of an agency may waive a suspension of 
payments, termination of the contract or grant, or suspension or debarment 
under this chapter with respect to a particular contract or grant if— 
(1) in the case of a contract, the head of the agency determines 
under section 8102(b)(1) of this title, after a final determination is 
issued under section 8102(b)(1), that suspension of payments, termi-
nation of the contract, suspension or debarment of the contractor, or 
refusal to permit a person to be treated as a responsible source for a 
contract would severely disrupt the operation of the agency to the det-
riment of the Federal Government or the general public; or 
(2) in the case of a grant, the head of the agency determines that 
suspension of payments, termination of the grant, or suspension or de-
barment of the grantee would not be in the public interest. 
(b) WAIVER AUTHORITY MAY NOT BE DELEGATED.—The authority of 
the head of an agency under this section to waive a suspension, termination, 
or debarment shall not be delegated. 
§ 8106. Regulations 
Governmentwide regulations governing actions under this chapter shall be 
issued pursuant to part B of subtitle I of this title.
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.
§ 8301. Definitions 
In this chapter—
(1) PUBLIC BUILDING, PUBLIC USE, AND PUBLIC WORK.—The terms 
‘‘public building’’, ‘‘public use’’, and ‘‘public work’’ mean a public 
building of, use by, and a public work of, the Federal Government, the 
District of Columbia, Puerto Rico, American Samoa, and the Virgin Is-
lands. 
(2) UNITED STATES.—The term ‘‘United States’’ includes any place 
subject to the jurisdiction of the United States.
171
§ 8302. American materials required for public use 
(a) IN GENERAL.—Only unmanufactured articles, materials, and supplies 
that have been mined or produced in the United States, and only manufac-
tured articles, materials, and supplies that have been manufactured in the 
United States substantially all from articles, materials, or supplies mined, 
produced, or manufactured in the United States, shall be acquired for public 
use unless the head of the department or independent establishment con-
cerned determines the acquisition is inconsistent with the public interest or 
the cost to be unreasonable. 
(b) EXCEPTIONS.—This section does not apply—
(1) to articles, materials, or supplies for use outside the United 
States; 
(2) if the articles, materials, or supplies of the class or kind to be 
used, or the articles, materials, or supplies from which they are manu-
factured, are not mined, produced, or manufactured in the United 
States in sufficient and reasonably available commercial quantities and 
are not of a satisfactory quality; and 
(3) to manufactured articles, materials, or supplies procured under 
a contract with an award value that is not more than the micro-pur-
chase threshold under section 1902 of this title. 
§ 8303. Contracts for public works 
(a) IN GENERAL.—Every contract for the construction, alteration, or re-
pair of any public building or public work in the United States shall contain
a provision that in the performance of the work the contractor, subcontrac-
tors, material men, or suppliers shall use only—
(1) unmanufactured articles, materials, and supplies that have been 
mined or produced in the United States; and 
(2) manufactured articles, materials, and supplies that have been 
manufactured in the United States substantially all from articles, mate-
rials, or supplies mined, produced, or manufactured in the United 
States. 
(b) EXCEPTIONS.—
(1) IN GENERAL.—This section does not apply—
(A) to articles, materials, or supplies for use outside the United 
States; 
(B) if the articles, materials, or supplies of the class or kind to 
be used, or the articles, materials, or supplies from which they are 
manufactured, are not mined, produced, or manufactured in the 
United States in sufficient and reasonably available commercial 
quantities and are not of a satisfactory quality; and
172
(C) to manufactured articles, materials, or supplies procured 
under any contract with an award value that is not more than the 
micro-purchase threshold under section 1902 of this title. 
(2) PARTICULAR ARTICLE, MATERIAL, OR SUPPLY.—If the head of 
the department or independent establishment making the contract finds 
that it is impracticable to comply with subsection (a) for a particular 
article, material, or supply or that it would unreasonably increase the 
cost, an exception shall be noted in the specifications for that article, 
material, or supply and a public record of the findings that justified 
the exception shall be made. 
(c) RESULTS OF FAILURE TO COMPLY.—If the head of a department, bu-
reau, agency, or independent establishment that has made a contract con-
taining the provision required by subsection (a) finds that there has been 
a failure to comply with the provision in the performance of the contract, 
the head of the department, bureau, agency, or independent establishment 
shall make the findings public. The findings shall include the name of the 
contractor obligated under the contract. The contractor, and any subcon-
tractor, material man, or supplier associated or affiliated with the con-
tractor, shall not be awarded another contract for the construction, alter-
ation, or repair of any public building or public work for three years after 
the findings are made public. 
§ 8304. Waiver rescission 
(a) TYPE OF AGREEMENT.—An agreement referred to in subsection (b) 
is a reciprocal defense procurement memorandum of understanding between 
the United States and a foreign country pursuant to which the Secretary 
of Defense has prospectively waived this chapter for certain products in that 
country. 
(b) DETERMINATION BY SECRETARY.—If the Secretary, after consulta-
tion with the United States Trade Representative, determines that a foreign 
country that is party to an agreement described in subsection (a) has vio-
lated the agreement by discriminating against certain types of products pro-
duced in the United States that are covered by the agreement, the Secretary 
shall rescind the Secretary’s blanket waiver of this chapter with respect to 
those types of products produced in that country. 
(c) REPORT.—The Secretary shall submit to Congress a report on the 
amount of Department of Defense purchases from foreign entities in fiscal 
year 2004. The report shall separately indicate the dollar value of items for 
which this chapter was waived pursuant to an agreement described in sub-
section (a), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), 
or an international agreement to which the United States is a party.
173
§ 8305. Annual report 
Not later than 60 days after the end of each fiscal year, the Secretary 
of Defense shall submit to Congress a report on the amount of purchases 
by the Department of Defense from foreign entities in that fiscal year. The 
report shall separately indicate the dollar value of items for which this chap-
ter was waived pursuant to—
(1) a reciprocal defense procurement memorandum of understanding 
described in section 849(c)(2) of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103–160, 107 Stat. 1725); 
(2) the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.); or 
(3) an international agreement to which the United States is a party.
CHAPTER 85—COMMITTEE FOR PURCHASE FROM 
PEOPLE WHO ARE BLIND OR SEVERELY DISABLED
Sec. 
8501.
Definitions. 
8502.
Committee for Purchase From People Who Are Blind or Severely Disabled. 
8503.
Duties and powers of the Committee. 
8504.
Procurement requirements for the Federal Government. 
8505.
Audit. 
8506.
Authorization of appropriations.
§ 8501. Definitions 
In this chapter—
(1) BLIND.—The term ‘‘blind’’ refers to an individual or class of in-
dividuals whose central visual acuity does not exceed 20/200 in the bet-
ter eye with correcting lenses or whose visual acuity, if better than 20/
200, is accompanied by a limit to the field of vision in the better eye 
to such a degree that its widest diameter subtends an angle of no 
greater than 20 degrees. 
(2) DIRECT LABOR.—The term ‘‘direct labor’’—
(A) includes all work required for preparation, processing, and 
packing of a commodity, or work directly relating to the perform-
ance of a service; but 
(B) does not include supervision, administration, inspection, or 
shipping. 
(3) ENTITY OF THE FEDERAL GOVERNMENT, FEDERAL GOVERN-
MENT, AND GOVERNMENT.—The terms ‘‘entity of the Federal Govern-
ment’’, ‘‘Federal Government’’, and ‘‘Government’’ include an entity of 
the legislative or judicial branch, a military department or executive 
agency (as defined in sections 102 and 105 of title 5), the United 
States Postal Service, and a nonappropriated fund instrumentality 
under the jurisdiction of the Armed Forces. 
(4) OTHER SEVERELY DISABLED.—The term ‘‘other severely dis-
abled’’ means an individual or class of individuals under a physical or 
mental disability, other than blindness, which (according to criteria es-
174
tablished by the Committee for Purchase From People Who Are Blind 
or Severely Disabled after consultation with appropriate entities of the 
Federal Government and taking into account the views of non-Govern-
ment entities representing the disabled) constitutes a substantial handi-
cap to employment and is of a nature that prevents the individual from 
currently engaging in normal competitive employment. 
(5) PROCUREMENT LIST.—The term ‘‘procurement list’’ means a list 
of the commodities produced by any qualified nonprofit agency for the 
blind or by any qualified nonprofit agency for other severely disabled, 
and the services those agencies provide, that the Committee determines 
are suitable for the Government to procure pursuant to this chapter. 
(6) QUALIFIED
NONPROFIT
AGENCY
FOR
OTHER
SEVERELY
DIS-
ABLED.—The term ‘‘qualified nonprofit agency for other severely dis-
abled’’ means an agency— 
(A)(i) organized under the laws of the United States or a State; 
(ii) operated in the interest of severely disabled individuals who 
are not blind; and 
(iii) of which no part of the net income of the agency inures 
to the benefit of an individual; 
(B) that complies with any applicable occupational health and 
safety standard prescribed by the Secretary of Labor; and 
(C) that in the production of commodities and in the provision 
of services (whether or not the commodities or services are pro-
cured under this chapter) during the fiscal year employs blind or 
other severely disabled individuals for at least 75 percent of the 
hours of direct labor required for the production or provision of 
the commodities or services. 
(7) QUALIFIED NONPROFIT AGENCY FOR THE BLIND.—The term 
‘‘qualified nonprofit agency for the blind’’ means an agency—
(A)(i) organized under the laws of the United States or a State; 
(ii) operated in the interest of blind individuals; and 
(iii) of which no part of the net income of the agency inures 
to the benefit of an individual; 
(B) that complies with any applicable occupational health and 
safety standard prescribed by the Secretary; and 
(C) that in the production of commodities and in the provision 
of services (whether or not the commodities or services are pro-
cured under this chapter) during the fiscal year employs blind in-
dividuals for at least 75 percent of the hours of direct labor re-
quired for the production or provision of the commodities or serv-
ices.
175
(8) SEVERELY DISABLED INDIVIDUAL.—The term ‘‘severely disabled 
individual’’ means an individual or class of individuals under a physical 
or mental disability, other than blindness, which (according to criteria 
established by the Committee after consultation with appropriate enti-
ties of the Government and taking into account the views of non-Gov-
ernment entities representing the disabled) constitutes a substantial 
handicap to employment and is of a nature that prevents the individual 
from currently engaging in normal competitive employment. 
(9) STATE.—The term ‘‘State’’ includes the District of Columbia, 
Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern 
Mariana Islands, the Marshall Islands, Palau, and the Federated 
States of Micronesia. 
§ 8502. Committee for Purchase From People Who Are Blind 
or Severely Disabled 
(a) ESTABLISHMENT.—There is a Committee for Purchase From People 
Who Are Blind or Severely Disabled. 
(b) COMPOSITION.—The Committee consists of 15 members appointed by 
the President as follows: 
(1) One officer or employee from each of the following, nominated 
by the head of the department or agency: 
(A) The Department of Agriculture. 
(B) The Department of Defense. 
(C) The Department of the Army. 
(D) The Department of the Navy. 
(E) The Department of the Air Force. 
(F) The Department of Health and Human Services. 
(G) The Department of Commerce. 
(H) The Department of Veterans Affairs. 
(I) The Department of Justice. 
(J) The Department of Labor. 
(K) The General Services Administration. 
(2) One member from individuals who are not officers or employees 
of the Federal Government and who are conversant with the problems 
incident to the employment of the blind. 
(3) One member from individuals who are not officers or employees 
of the Government and who are conversant with the problems incident 
to the employment of other severely disabled individuals. 
(4) One member from individuals who are not officers or employees 
of the Government and who represent blind individuals employed in 
qualified nonprofit agencies for the blind.
176
(5) One member from individuals who are not officers or employees 
of the Government and who represent severely disabled individuals 
(other than blind individuals) employed in qualified nonprofit agencies 
for other severely disabled individuals. 
(c) TERMS OF OFFICE.—Members appointed under paragraph (2), (3), 
(4), or (5) of subsection (b) shall be appointed for terms of five years and 
may be reappointed if the member meets the qualifications prescribed by 
those paragraphs. 
(d) CHAIRMAN.—The members of the Committee shall elect one of the 
members to be Chairman. 
(e) VACANCY.— 
(1) MANNER IN WHICH FILLED.—A vacancy in the membership of 
the Committee shall be filled in the manner in which the original ap-
pointment was made. 
(2) UNFULFILLED TERM.—A member appointed under paragraph 
(2), (3), (4) or (5) of subsection (b) to fill a vacancy occurring prior 
to the expiration of the term for which the predecessor was appointed 
shall be appointed only for the remainder of the term. The member 
may serve after the expiration of a term until a successor takes office. 
(f) PAY AND TRAVEL EXPENSES.—
(1) AMOUNT TO WHICH MEMBERS ARE ENTITLED.—Except as pro-
vided in paragraph (2), members of the Committee are entitled to re-
ceive the daily equivalent of the maximum annual rate of basic pay 
payable under section 5376 of title 5 for each day (including travel 
time) during which they perform services for the Committee. A member 
is entitled to travel expenses, including a per diem allowance, instead 
of subsistence, as provided under section 5703 of title 5. 
(2) OFFICERS
OR
EMPLOYEES
OF
THE
GOVERNMENT.—Members 
who are officers or employees of the Government may not receive addi-
tional pay because of their service on the Committee. 
(g) STAFF.— 
(1) APPOINTMENT AND COMPENSATION.—Subject to rules that the 
Committee may adopt and to chapters 33 and 51 and subchapter III 
of chapter 53 of title 5, the Chairman may appoint and fix the pay 
of personnel the Committee determines are necessary to assist it in car-
rying out this chapter. 
(2) PERSONNEL FROM OTHER ENTITIES.—On request of the Com-
mittee, the head of an entity of the Government may detail, on a reim-
bursable basis, any personnel of the entity to the Committee to assist 
it in carrying out this chapter.
177
(h) OBTAINING OFFICIAL INFORMATION.—The Committee may secure di-
rectly from an entity of the Government information necessary to enable it 
to carry out this chapter. On request of the Chairman, the head of the enti-
ty shall furnish the information to the Committee. 
(i) ADMINISTRATIVE SUPPORT SERVICES.—The Administrator of General 
Services shall provide to the Committee on a reimbursable basis administra-
tive support services that the Committee requests. 
(j) ANNUAL REPORT.—Not later than December 31 of each year, the 
Committee shall transmit to the President a report that includes the names 
of the Committee members serving in the prior fiscal year, the dates of 
Committee meetings in that year, a description of the activities of the Com-
mittee under this chapter in that year, and any recommendations for 
changes in this chapter which the Committee determines are necessary. 
§ 8503. Duties and powers of the Committee 
(a) PROCUREMENT LIST.—The Committee for Purchase From People 
Who Are Blind or Severely Disabled shall maintain and publish in the Fed-
eral Register a procurement list. In accordance with the requirements of 
section 553(b)–(e) of title 5, the Committee by rule may add to, and remove 
from, the procurement list commodities produced and services provided. 
(b) FAIR MARKET PRICE.—The Committee shall determine the fair mar-
ket price of commodities and services contained on the procurement list that 
are offered for sale to the Government by a qualified nonprofit agency for 
the blind or a qualified nonprofit agency for other severely disabled. The 
Committee from time to time shall revise its price determinations with re-
spect to those commodities and services in accordance with changing market 
conditions. 
(c) CENTRAL NONPROFIT AGENCY.—The Committee shall designate a 
central nonprofit agency to facilitate the distribution, by direct allocation, 
subcontract, or any other means, of orders of the Government for commod-
ities and services on the procurement list among qualified nonprofit agencies 
for the blind or qualified nonprofit agencies for other severely disabled. 
(d) REGULATIONS.—The Committee—
(1) may prescribe regulations regarding specifications for commod-
ities and services on the procurement list, the time of their delivery, 
and other matters as necessary to carry out this chapter; and 
(2) shall prescribe regulations providing that when the Government 
purchases commodities produced and offered for sale by qualified non-
profit agencies for the blind or qualified nonprofit agencies for other 
severely disabled, priority shall be given to commodities produced and 
offered for sale by qualified nonprofit agencies for the blind.
178
(e) STUDY
AND EVALUATION
OF ACTIVITIES.—The Committee shall 
make a continuing study and evaluation of its activities under this chapter 
to ensure effective and efficient administration of this chapter. The Com-
mittee on its own or in cooperation with other public or nonprofit private 
agencies may study—
(1) problems related to the employment of the blind and other se-
verely disabled individuals; and 
(2) the development and adaptation of production methods that 
would enable a greater utilization of the blind and other severely dis-
abled individuals. 
§ 8504. Procurement requirements for the Federal Govern-
ment 
(a) IN GENERAL.—An entity of the Federal Government intending to pro-
cure a commodity or service on the procurement list shall procure the com-
modity or service from a qualified nonprofit agency for the blind or a quali-
fied nonprofit agency for other severely disabled in accordance with regula-
tions of the Committee for Purchase From People Who Are Blind or Se-
verely Disabled and at the price the Committee establishes if the commodity 
or service is available within the period required by the entity. 
(b) EXCEPTION.—This section does not apply to the procurement of a 
commodity that is available from an industry established under chapter 307 
of title 18 and that is required under section 4124 of title 18 to be procured 
from that industry. 
§ 8505. Audit 
For the purpose of audit and examination, the Comptroller General shall 
have access to the records of—
(1) the Committee for Purchase From People Who Are Blind or Se-
verely Disabled and of each central nonprofit agency the Committee 
designates under section 8503(c) of this title; and 
(2) qualified nonprofit agencies for the blind and qualified nonprofit 
agencies for other severely disabled that have sold commodities or serv-
ices under this chapter to the extent those records relate to the activi-
ties of the agency in a fiscal year in which a sale was made under this 
chapter. 
§ 8506. Authorization of appropriations 
Necessary amounts may be appropriated to the Committee for Purchase 
From People Who Are Blind or Severely Disabled to carry out this chapter.
CHAPTER 87—KICKBACKS
Sec. 
8701.
Definitions. 
8702.
Prohibited conduct. 
8703.
Contractor responsibilities. 
8704.
Inspection authority.
179
8705.
Administrative offsets. 
8706.
Civil actions. 
8707.
Criminal penalties.
§ 8701. Definitions 
In this chapter—
(1) CONTRACTING AGENCY.—–The term ‘‘contracting agency’’, when 
used with respect to a prime contractor, means a department, agency, 
or establishment of the Federal Government that enters into a prime 
contract with a prime contractor. 
(2) KICKBACK.—The term ‘‘kickback’’ means any money, fee, com-
mission, credit, gift, gratuity, thing of value, or compensation of any 
kind that is provided to a prime contractor, prime contractor employee, 
subcontractor, or subcontractor employee to improperly obtain or re-
ward favorable treatment in connection with a prime contract or a sub-
contract relating to a prime contract. 
(3) PRIME CONTRACT.—The term ‘‘prime contract’’ means a con-
tract or contractual action entered into by the Government to obtain 
supplies, materials, equipment, or services of any kind. 
(4) PRIME CONTRACTOR.—The term ‘‘prime contractor’’ means a 
person that has entered into a prime contract with the Government. 
(5) PRIME CONTRACTOR EMPLOYEE.—The term ‘‘prime contractor 
employee’’ means an officer, partner, employee, or agent of a prime 
contractor. 
(6) SUBCONTRACT.—The term ‘‘subcontract’’ means a contract or 
contractual action entered into by a prime contractor or subcontractor 
to obtain supplies, materials, equipment, or services of any kind under 
a prime contract. 
(7) SUBCONTRACTOR.—The term ‘‘subcontractor’’— 
(A) means a person, other than the prime contractor, that offers 
to furnish or furnishes supplies, materials, equipment, or services 
under a prime contract or a subcontract entered into in connection 
with the prime contract; and 
(B) includes a person that offers to furnish or furnishes general 
supplies to the prime contractor or a higher tier subcontractor. 
(8) SUBCONTRACTOR
EMPLOYEE.—The term ‘‘subcontractor em-
ployee’’ means an officer, partner, employee, or agent of a subcon-
tractor. 
§ 8702. Prohibited conduct 
A person may not—
(1) provide, attempt to provide, or offer to provide a kickback; 
(2) solicit, accept, or attempt to accept a kickback; or
180
(3) include the amount of a kickback prohibited by clause (1) or (2) 
in the contract price—
(A) a subcontractor charges a prime contractor or a higher tier 
subcontractor; or 
(B) a prime contractor charges the Federal Government. 
§ 8703. Contractor responsibilities 
(a) REQUIREMENTS INCLUDED IN CONTRACTS.—Each contracting agency 
shall include in each prime contract the agency awards a requirement that 
the prime contractor shall—
(1) have in place and follow reasonable procedures designed to pre-
vent and detect violations of section 8702 of this title in its own oper-
ations and direct business relationships; and 
(2) cooperate fully with a Federal Government agency investigating 
a violation of section 8702. 
(b) FULL COOPERATION REQUIRED.—Notwithstanding subsection (d), a 
prime contractor shall cooperate fully with a Government agency inves-
tigating a violation of section 8702 of this title. 
(c) REPORTING REQUIREMENT.— 
(1) IN GENERAL.—A prime contractor or subcontractor that has rea-
sonable grounds to believe that a violation of section 8702 of this title 
may have occurred shall promptly report the possible violation in writ-
ing to the inspector general of the contracting agency, the head of the
contracting agency if the agency does not have an inspector general, 
or the Attorney General. 
(2) SUPPLYING INFORMATION AS FAVORABLE EVIDENCE.—In an ad-
ministrative or contractual action to suspend or debar a person who is 
eligible to enter into contracts with the Government, evidence that the 
person has supplied information to the Government pursuant to para-
graph (1) is favorable evidence of the person’s responsibility for the 
purposes of Federal procurement laws and regulations. 
(d) INAPPLICABILITY TO CERTAIN PRIME CONTRACTS.—Subsection (a) 
does not apply to a prime contract—
(1) that is not greater than $100,000; or 
(2) for the acquisition of commercial items (as defined in section 103 
of this title). 
§ 8704. Inspection authority 
(a) IN GENERAL.—To ascertain whether there has been a violation of sec-
tion 8702 of this title with respect to a prime contract, the Comptroller 
General and the inspector general of the contracting agency, or a represent-
ative of the contracting agency designated by the head of the agency if the 
agency does not have an inspector general, shall have access to and may
181
inspect the facilities and audit the records of a prime contractor or subcon-
tractor under a prime contract awarded by the agency. 
(b) EXCEPTION.—This section does not apply to a prime contract for the 
acquisition of commercial items (as defined in section 103 of this title). 
§ 8705. Administrative offsets 
(a) DEFINITION.—In this section, the term ‘‘contracting officer’’ has the 
meaning given that term in chapter 69 of this title. 
(b) OFFSET AUTHORITY.—A contracting officer of a contracting agency 
may offset the amount of a kickback provided, accepted, or charged in viola-
tion of section 8702 of this title against amounts the Federal Government 
owes the prime contractor under the prime contract to which the kickback 
relates. 
(c) DUTIES OF PRIME CONTRACTOR.—
(1) WITHHOLDING AND PAYING OVER OR RETAINING AMOUNTS.—On 
direction of a contracting officer of a contracting agency with respect 
to a prime contract, the prime contractor shall withhold from amounts 
owed to a subcontractor under a subcontract of the prime contract the 
amount of a kickback which was or may be offset against the prime 
contractor under subsection (b). The contracting officer may order that 
amounts withheld—
(A) be paid over to the contracting agency; or 
(B) be retained by the prime contractor if the Government has 
already offset the amount against the prime contractor. 
(2) NOTICE.—The prime contractor shall notify the contracting offi-
cer when an amount is withheld and retained under paragraph (1)(B). 
(d) OFFSET, DIRECTION, OR ORDER IS CLAIM OF GOVERNMENT.—An 
offset under subsection (b) of this section or a direction or order of a con-
tracting officer under subsection (c) of this section is a claim by the Govern-
ment for the purposes of chapter 69 of this title. 
§ 8706. Civil actions 
(a) AMOUNT.—The Federal Government in a civil action may recover 
from a person—
(1) that knowingly engages in conduct prohibited by section 8702 of 
this title a civil penalty equal to—
(A) twice the amount of each kickback involved in the violation; 
and 
(B) not more than $10,000 for each occurrence of prohibited 
conduct; and 
(2) whose employee, subcontractor or subcontractor employee violates 
section 8702 of this title by providing, accepting, or charging a kick-
back a civil penalty equal to the amount of that kickback.
182
(b) STATUTE OF LIMITATIONS.—A civil action under this section must be 
brought within 6 years after the later of the date on which—
(1) the prohibited conduct establishing the cause of action occurred; 
or 
(2) the Government first knew or should reasonably have known that 
the prohibited conduct had occurred. 
§ 8707. Criminal penalties 
A person that knowingly and willfully engages in conduct prohibited by 
section 8702 of this title shall be fined under title 18, imprisoned for not 
more than 10 years, or both.
SEC. 2. CONFORMING AMENDMENT. 
Section 2410i(b)(1) of title 10, United States Code, is amended by strik-
ing ‘‘small purchase threshold’’ and substituting ‘‘simplified acquisition 
threshold’’.
SEC. 3. CONFORMING CROSS-REFERENCES. 
(a) TITLE 5.—Title 5, United States Code, is amended as follows: 
(1) In section 504(b)(1)(C)(ii)—
(A) strike ‘‘section 6 of the Contract Disputes Act of 1978 (41 
U.S.C. 605)’’ and substitute ‘‘section 6903 of title 41’’; and 
(B) strike ‘‘section 8 of that Act (41 U.S.C. 607)’’ and sub-
stitute ‘‘section 6905 of title 41’’. 
(2) In section 551(1)(H), strike ‘‘chapter 2 of title 41;’’. 
(3) In section 595(c)(10), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949, as amended (41 U.S.C. 251–
260)’’ and substitute ‘‘part C of subtitle I of title 41’’. 
(4) In section 701(b)(1)(H), strike ‘‘chapter 2 of title 41;’’. 
(5) In section 3109(b)(3), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’. 
(6) In section 3374(c)(2), strike ‘‘section 27 of the Office of Federal 
Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’. 
(7) In section 3704(b)(2)(G), strike ‘‘section 27 of the Office of Fed-
eral Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’. 
(8) In section 4105, strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’. 
(9) In section 5102(c)(30), strike ‘‘section 8 of the Contract Dis-
putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’. 
(10) In section 5372a—
(A) in subsection (a)(1), strike ‘‘section 8 of the Contract Dis-
putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’; and 
(B) in subsection (a)(2), strike ‘‘section 8 of the Contract Dis-
putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’.
183
(11) In section 7342(e)(1), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(12) In section 8709(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’. 
(13) In section 8714a(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’. 
(14) In section 8714b(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’. 
(15) In section 8714c(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’. 
(16) In section 8902(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’. 
(17) In section 9003—
(A) in subsection (a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b)–(d)’’; 
(B) in subsection (c)(3), before clause (A), strike ‘‘the Contract 
Disputes Act of 1978’’ and substitute ‘‘chapter 69 of title 41’’; 
(C) in subsection (c)(3)(A), strike ‘‘section 8(c) of such Act’’ 
and substitute ‘‘section 6905(c) of title 41’’; and
(D) in subsection (c)(3)(B), strike ‘‘section 10(a)(1) of such 
Act’’ and substitute ‘‘section 6904(b)(1) of title 41’’. 
(18) In section 9009, strike ‘‘section 26(f) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f))’’ and substitute ‘‘section 
1502(a) and (b) of title 41’’. 
(b) TITLE 10.—Title 10, United States Code, is amended as follows: 
(1) In section 133(c)(1), strike ‘‘section 16(3) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute ‘‘sec-
tion 1702(c) of title 41’’. 
(2) In section 2013(a), strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(3) In section 2194(b)(2), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(4) In section 2201—
(A) in subsection (b), strike ‘‘section 3732(a) of the Revised 
Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 6301(a) and 
(b)(1)–(3) of title 41’’; and 
(B) in subsection (c), strike ‘‘section 3732(a) of the Revised 
Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 6301(a) and 
(b)(1)–(3) of title 41’’.
184
(5) In section 2207(b), strike ‘‘section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute ‘‘section 
133 of title 41’’. 
(6) In section 2225(f)—
(A) in clause (1), strike ‘‘section 16(3) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute ‘‘sec-
tion 1702(c) of title 41’’; and 
(B) in clause (2), strike ‘‘section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute ‘‘sec-
tion 133 of title 41’’. 
(7) In section 2226(b), strike ‘‘section 4(12) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute ‘‘section 
103 of title 41’’. 
(8) In section 2302—
(A) in clause (3), strike ‘‘section 4 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘chapter 1 
of title 41’’; 
(B) In clause (6), strike ‘‘section 25(c)(1) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 421(c)(1))’’ and sub-
stitute ‘‘section 1302(a)(1) of title 41’’; and 
(C) In clause (7), strike ‘‘section 4 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 133 
of title 41’’. 
(9) In section 2302a—
(A) in subsection (a), strike ‘‘section 4(11) of the Office of Fed-
eral Procurement Policy Act’’ and substitute ‘‘section 133 of title 
41’’; and 
(B) In subsection (b), strike ‘‘section 33 of the Office of Federal 
Procurement Policy Act’’ and substitute ‘‘section 1905 of title 
41’’. 
(10) In section 2302b, strike ‘‘section 31 of the Office of Federal 
Procurement Policy Act’’ and substitute ‘‘section 1901 of title 41’’. 
(11) In section 2302c—
(A) in subsection (a)(1), strike ‘‘section 30 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 426)’’ and substitute 
‘‘section 2301 of title 41’’; and 
(B) In subsection (b), strike ‘‘section 16(3) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute 
‘‘section 1702(c) of title 41’’. 
(12) In section 2304—
187
(A) in subsection (a)(4)(A), strike ‘‘section 4(11) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and 
substitute ‘‘section 133 of title 41)’’; and 
(B) in subsection (a)(4)(B), strike ‘‘section 4(12) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and 
substitute ‘‘section 103 of title 41)’’. 
(27) In section 2410(c), strike ‘‘section 4(11) of the Office of Fed-
eral Procurement Policy Act’’ and substitute ‘‘section 133 of title 41’’. 
(28) In section 2410b(c), strike ‘‘section 4(12) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403(12)))’’ and substitute 
‘‘section 103 of title 41)’’. 
(29) In section 2410d—
(A) in subsection (b)(2)(A), strike ‘‘section 5(3) of the Javits-
Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute ‘‘section 
8501(7) of title 41’’; 
(B) in subsection (b)(2)(B), strike ‘‘handicapped, as defined in 
section 5(4) of such Act (41 U.S.C. 48b(4))’’ and substitute ‘‘dis-
abled, as defined in section 8501(6) of title 41’’; and 
(C) in subsection (b)(2)(C), strike ‘‘section 2(c) of such Act (41 
U.S.C. 47(c))’’ and substitute ‘‘section 8503(c) of title 41’’. 
(30) In section 2410g(d)(1), strike ‘‘section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and substitute 
‘‘section 103 of title 41)’’. 
(31) In section 2410i(b)(1), strike ‘‘section 4(11) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and substitute 
‘‘section 133 of title 41)’’. 
(32) In section 2410m—
(A) in subsection (a), before clause (1), strike ‘‘the Contract 
Disputes Act of 1978 (41 U.S.C. 601 et seq.)’’ and substitute 
‘‘chapter 69 of title 41’’; 
(B) in subsection (a)(2), strike ‘‘section 7 of such Act (41 
U.S.C. 606)’’ and substitute ‘‘section 6904(a) of title 41’’; and 
(C) in subsection (b)(1)(A), strike ‘‘section 10(a) of the Con-
tract Disputes Act of 1978 (41 U.S.C. 609(a))’’ and substitute 
‘‘section 6904(b) of title 41’’. 
(33) In section 2457(e), strike ‘‘section 2 of the Buy American Act 
(41 U.S.C. 10a)’’ and substitute ‘‘section 8302 of title 41’’. 
(34) In section 2461(e)(1), strike ‘‘section 2 of the Javits-Wagner-
O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 8503 of title 41’’.
188
(35) In section 2482(b)(1), strike ‘‘section 4(6) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403(6))’’ and substitute ‘‘sec-
tion 106 of title 41’’. 
(36) In the chapter analysis for subchapter V of chapter 148, in the 
item for section 2533, strike ‘‘the Buy American Act’’ and substitute 
‘‘chapter 83 of title 41’’. 
(37) In section 2533—
(A) in the section heading, strike ‘‘the Buy American Act’’ and 
substitute ‘‘chapter 83 of title 41’’; and 
(B) strike ‘‘section 2 of the Buy American Act (41 U.S.C. 
10a)’’ and substitute ‘‘section 8302 of title 41’’. 
(38) In section 2533a(i), strike ‘‘section 34 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430)’’ and substitute ‘‘section 1906 
of title 41’’. 
(39) In section 2534(g)(2), strike ‘‘section 33 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 429)’’ and substitute ‘‘section 
1905 of title 41’’. 
(40) In section 2562(a)(1), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(41) In section 2576(a), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(42) In section 2636(b)(3), strike ‘‘section 4(11) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(11))’’ and substitute 
‘‘section 133 of title 41’’. 
(43) In section 2667(f)(1), strike ‘‘Notwithstanding subsection (a)(3) 
or subtitle I of title 40 and title III of the Federal Property and Ad-
ministrative Services Act of 1949 (to the extent subtitle I and title III 
are inconsistent with this subsection)’’ and substitute ‘‘Notwithstanding 
subtitle I of title 40 and part C of subtitle I of title 41 (to the extent 
those provisions are inconsistent with this subsection) or subsection 
(a)(2) of this section’’. 
(44) In section 2676(a), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949, as amended (41 U.S.C. 251 et 
seq.)’’ and substitute ‘‘part C of subtitle I of title 41’’. 
(45) In section 2691(b), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’.
189
(46) In section 2696(a), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(47) In section 2701(i)(1), in the catchline, strike ‘‘MILLER ACT’’ 
and substitute ‘‘SECTIONS 3131 AND 3133 OF TITLE 40’’. 
(48) In section 2836(g), strike ‘‘the Contract Disputes Act of 1978 
(41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’. 
(49) In section 2854a(d)(1), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(50) In section 2878(d)(2), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(51) In the chapter analysis for chapter 633, in the item for section 
7299, strike ‘‘Walsh-Healey Act’’ and substitute ‘‘chapter 65 of title 
41’’. 
(52) In section 7299—
(A) in the section heading, strike ‘‘Walsh-Healey Act’’ and sub-
stitute ‘‘chapter 65 of title 41’’; and 
(B) strike ‘‘the Walsh-Healey Act (41 U.S.C. 35 et seq.)’’ and 
substitute ‘‘chapter 65 of title 41’’. 
(53) In section 7305(d)—
(A) strike ‘‘title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and substitute 
‘‘part C of subtitle I of title 41’’; and 
(B) strike ‘‘under subtitle I of title 40 and such title III’’ and 
substitute ‘‘under those provisions’’. 
(54) In section 9444(b)(1), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(55) In section 9781(g), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(c) TITLE 14.—Title 14, United States Code, is amended as follows: 
(1) In section 92(d), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(2) In section 93(h), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’.
190
(3) In section 641(a), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(4) In section 685(c)(1), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(d) TITLE 18.—Title 18, United States Code, is amended as follows: 
(1) In section 3672, strike ‘‘section 3709 of the Revised Statutes of 
the United States’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(2) In section 4124(c), strike ‘‘section 6(d)(4) of the Office of Fed-
eral Procurement Policy Act’’ and substitute ‘‘section 1122(a)(4) of 
title 41’’. 
(e) TITLE 23.—Title 23, United States Code, is amended as follows: 
(1) In section 107(a), strike ‘‘the Act of February 26, 1931, 46 Stat. 
1421’’ and substitute ‘‘sections 3114–3116 and 3118 of title 40’’. 
(2) In section 140—
(A) in subsection (b), strike ‘‘section 3709 of the Revised Stat-
utes, as amended (41 U.S.C. 5),’’ and substitute ‘‘section 
6101(b)–(d) of title 41’’; and 
(B) in subsection (c)—
(i) strike ‘‘section 3709 of the Revised Statutes, as amend-
ed (41 U.S.C. 5),’’ and substitute ‘‘section 6101(b)–(d) of 
title 41’’; and 
(ii) strike ‘‘section 302(e) of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 252(e))’’ and 
substitute ‘‘section 3107 of title 41’’. 
(3) In section 210(e), strike ‘‘the Act of February 26, 1931; 46 Stat. 
1421’’ and substitute ‘‘sections 3114–3116 and 3118 of title 40’’. 
(4) In section 502(b)(5), strike ‘‘Section 3709 of the Revised Stat-
utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
(f) THE INTERNAL REVENUE CODE OF 1986.—Section 7608(c)(1) of the 
Internal Revenue Code of 1986 (26 U.S.C. 7608(c)(1)) is amended—
(1) in clause (A)(i)(II), by striking ‘‘sections 11(a) and 22’’ and sub-
stituting ‘‘sections 6301(a) and (b)(1)–(3) and 6306’’; 
(2) in clause (A)(i)(III), by striking ‘‘section 255’’ and substituting 
‘‘chapter 45’’; and 
(3) in clause (A)(i)(V), by striking ‘‘section 254(a) and (c)’’ and sub-
stituting ‘‘section 3901’’. 
(g) TITLE 28.—Title 28, United States Code, is amended as follows: 
(1) In the last sentence of section 524(c)(1), strike ‘‘section 3709 
of the Revised Statutes of the United States (41 U.S.C. 5), title III
191
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 251 and following),’’ and substitute ‘‘part C of subtitle I and 
section 6101(b)–(d) of title 41’’. 
(2) In section 604(a)(10)(C), strike ‘‘section 3709 of the Revised 
Statutes of the United States (41 U.S.C. 5)’’ and substitute ‘‘section 
6101(b)–(d) of title 41’’. 
(3) In section 624(3), strike ‘‘section 3709 of the Revised Statutes, 
as amended (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 
41’’. 
(4) In section 753(g), strike ‘‘section 3709 of the Revised Statutes 
of the United States, as amended (41 U.S.C. 5)’’ and substitute ‘‘sec-
tion 6101(b)–(d) of title 41’’. 
(5) In section 1295—
(A) in subsection (a)(10), strike ‘‘section 8(g)(1) of the Con-
tract Disputes Act of 1978 (41 U.S.C. 607(g)(1))’’ and substitute 
‘‘section 6907(a)(1) of title 41’’; 
(B) in subsection (b), strike ‘‘section 10(b) of the Contract Dis-
putes Act of 1978 (41 U.S.C. 609(b))’’ and substitute ‘‘section 
6907(b) of title 41’’; and 
(C) in subsection (c), strike ‘‘section 10(b) of the Contract Dis-
putes Act of 1978’’ and substitute ‘‘section 6907(b) of title 41’’. 
(6) In section 1346(a)(2), strike ‘‘sections 8(g)(1) and 10(a)(1) of 
the Contract Disputes Act of 1978’’ and substitute ‘‘sections 
6904(b)(1) and 6907(a)(1) of title 41’’. 
(7) In the chapter analysis for chapter 91, in item 1499, strike 
‘‘Contract Work Hours and Safety Standards Act’’ and substitute 
‘‘chapter 37 of title 40’’. 
(8) In section 1491(a)(2), strike ‘‘section 10(a)(1) of the Contract 
Disputes Act of 1978’’ and substitute ‘‘section 6904(b)(1) of title 41’’. 
(9) In section 1499, in the section heading, strike ‘‘Contract 
Work Hours and Safety Standards Act’’ and substitute 
‘‘chapter 37 of title 40’’. 
(10) In section 2401(a), strike ‘‘the Contract Disputes Act of 1978’’ 
and substitute ‘‘chapter 69 of title 41’’. 
(11) In section 2412—
(A) in subsection (d)(2)(E), strike ‘‘the Contract Disputes Act 
of 1978’’ and substitute ‘‘chapter 69 of title 41’’; and 
(B) in subsection (d)(3), strike ‘‘the Contract Disputes Act of 
1978’’ and substitute ‘‘chapter 69 of title 41’’. 
(12) In section 2414, strike ‘‘the Contract Disputes Act of 1978’’ 
and substitute ‘‘chapter 69 of title 41’’.
192
(13) In section 2517(a), strike ‘‘the Contract Disputes Act of 1978’’ 
and substitute ‘‘chapter 69 of title 41’’. 
(h) TITLE 31.—Title 31, United States Code, is amended as follows: 
(1) In section 506, strike ‘‘section 5(a) of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 404(a))’’ and substitute ‘‘section 
1101(a) of title 41’’. 
(2) In section 781(c)(1), strike ‘‘section 3709 of the Revised Stat-
utes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(3) In section 1344(g)(2)(A), strike ‘‘(41 U.S.C. 5a)’’ and substitute 
‘‘(ch. 744, 60 Stat. 811)’’. 
(4) In section 3567, strike ‘‘section 4(1) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(1))’’ and substitute ‘‘section 
132 of title 41’’. 
(5) In section 3718(b)(1)(A), strike ‘‘title III of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C. 251 and fol-
lowing)’’ and substitute ‘‘part C of subtitle I of title 41’’. 
(6) In section 3902(a), strike ‘‘section 12 of the Contract Disputes 
Act of 1978 (41 U.S.C. 611)’’ and substitute ‘‘section 6909(a)(1) and 
(b) of title 41’’. 
(7) In section 3907—
(A) in subsection (a), strike ‘‘section 6 of the Contract Disputes 
Act of 1978 (41 U.S.C. 605)’’ and substitute ‘‘section 6903 of 
title 41’’; 
(B) in subsection (b)(1)(A), strike ‘‘the Contract Disputes Act 
of 1978 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of 
title 41’’; 
(C) in subsection (b)(2)—
(i) strike ‘‘section 12 of the Contract Disputes Act of 1978 
(41 U.S.C. 611)’’ and substitute ‘‘section 6909(a)(1) and (b) 
of title 41’’; and 
(ii) strike ‘‘section 12’’ and substitute ‘‘section 6909(a)(1) 
and (b)’’; and 
(D) in subsection (c), strike ‘‘the Contract Disputes Act of 1978 
(41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’. 
(8) In section 6202(c)(2), strike ‘‘section 6(d)(5) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405(d)(5))’’ and substitute 
‘‘section 1122(a)(5) of title 41’’. 
(9) In section 9703(b)(3), as added by section 638(b)(1) of the Act 
of October 6, 1992 (Public Law 102–393, 106 Stat. 1779), strike ‘‘sec-
tion 3709 of the Revised Statutes of the United States (41 U.S.C. 5), 
title III of the Federal Property and Administrative Services Act of
193
1949 (41 U.S.C. 251 et seq.),’’ and substitute ‘‘part C of subtitle I 
and section 6101(b)–(d) of title 41’’. 
(i) TITLE 35.—Title 35, United States Code, is amended as follows: 
(1) In section 2(b)(4)(A), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(2) In section 203(b), strike ‘‘the Contract Disputes Act (41 U.S.C. 
§ 601 et seq.)’’ and substitute ‘‘chapter 69 of title 41’’. 
(j) TITLE 38.—Title 38, United States Code, is amended as follows: 
(1) In section 1720(c)(2), strike ‘‘section 2(b)(1) of the Service Con-
tract Act of 1965 (41 U.S.C. 351(b)(1))’’ and substitute ‘‘section 
6704(a) of title 41’’. 
(2) In section 1966(a), strike ‘‘section 3709 of the Revised Statutes, 
as amended (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 
41’’. 
(3) In section 3720(b), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(4) In section 7317(f), strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(5) In section 7802(f), strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(6) In section 8122—
(A) in subsection (a)(1), strike ‘‘section 3709 of the Revised 
Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of 
title 41’’; and 
(B) in subsection (c)—
(i) strike ‘‘(41 U.S.C. 252(c))’’; and 
(ii) strike ‘‘section 304 of that Act (41 U.S.C. 254)’’ and 
substitute ‘‘sections 3901 and 3905 of title 41’’. 
(7) In section 8153(a)—
(A) in paragraph (3)(B)(ii), strike ‘‘section 22 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 418b)’’ and substitute 
‘‘section 1706 of title 41’’; and 
(B) in paragraph (3)(D), strike ‘‘section 303(f) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
253(f))’’ and substitute ‘‘section 3303(d) of title 41’’. 
(8) In section 8201(e), strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(k) TITLE 39.—Section 410(b) of title 39, United States Code, is amend-
ed by striking clause (5) and substituting—
194
‘‘(5) chapters 65 and 67 of title 41;’’. 
(l) TITLE 40.—Title 40, United States Code, is amended as follows: 
(1) In the chapter analysis for chapter 1, in item 111, strike ‘‘Fed-
eral Property and Administrative Services Act of 1949’’ and substitute 
‘‘part C of subtitle I of title 41’’. 
(2) In section 102, before clause (1), strike ‘‘title III of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
seq.)’’ and substitute ‘‘part C of subtitle I of title 41’’. 
(3) In section 111—
(A) in the section heading, strike ‘‘Federal Property and 
Administrative Services Act of 1949’’ and substitute 
‘‘part C of subtitle I of title 41’’; and 
(B) before clause (1), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 
and substitute ‘‘part C of subtitle I of title 41’’. 
(4) In section 113(b)—
(A) in the catchline, strike ‘‘THE OFFICE OF FEDERAL PRO-
CUREMENT POLICY ACT’’ and substitute ‘‘PART B OF SUBTITLE 
I OF TITLE 41’’; and 
(B) strike ‘‘the Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.)’’ and substitute ‘‘part B of subtitle I of title 
41’’. 
(5) In section 311—
(A) in subsection (a), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 
and substitute ‘‘part C of subtitle I of title 41’’; and 
(B) in subsection (b), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 
and substitute ‘‘part C of subtitle I of title 41’’. 
(6) In section 501(b)(2)(B), strike ‘‘the Office of Federal Procure-
ment Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of 
subtitle I of title 41’’. 
(7) In section 502—
(A) in subsection (b)(1)(A)(i), strike ‘‘section 5(3) of the Javits-
Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute ‘‘section 
8501(7) of title 41’’; 
(B) in subsection (b)(1)(A)(ii), strike ‘‘handicapped (as defined 
in section 5(4) of the Javits-Wagner-O’Day Act (41 U.S.C. 
48b(4)))’’ and substitute ‘‘disabled (as defined in section 8501(6) 
of title 41)’’;
195
(C) in subsection (b)(1)(B), strike ‘‘the Javits-Wagner-O’Day 
Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title 
41’’; and 
(D) in subsection (b)(2), strike ‘‘section 2 of the Javits-Wagner-
O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 8503 of title 
41’’. 
(8) In section 503(b)—
(A) in paragraph (1), strike ‘‘the Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of sub-
title I of title 41’’; and 
(B) in paragraph (3)—
(i) in the catchline, strike ‘‘SECTION
3709
OF
REVISED 
STATUTES’’ and substitute ‘‘SECTION 6101(b)–(d) OF TITLE 
41’’; and 
(ii) strike ‘‘Section 3709 of the Revised Statutes (41 
U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
(9) In section 506(a)(1)(D), strike ‘‘the Office of Federal Procure-
ment Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘part B of 
subtitle I of title 41’’.
(10) In section 545(f), strike ‘‘Section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
(11) In section 593(a)(2), strike ‘‘the Javits-Wagner-O’Day Act (41 
U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title 41’’. 
(12) In section 1305, strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(13) In section 1308, strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(14) In section 3148, strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(15) In section 3304(d)(2), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(16) In section 3305(a)—
(A) in paragraph (1), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 
and substitute ‘‘part C of subtitle I of title 41’’; and 
(B) in paragraph (2), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 
and substitute ‘‘part C of subtitle I of title 41’’.
196
(17) In section 3308(a), strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(18) In section 3310(2), strike ‘‘section 303 of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253)’’ and sub-
stitute ‘‘sections 3106 and 3301–3304 of title 41’’. 
(19) In section 3701(b)(3)(A)(ii), strike ‘‘the Walsh-Healey Act (41 
U.S.C. 35 et seq.)’’ and substitute ‘‘chapter 65 of title 41’’. 
(20) In section 3704(b)(1), strike ‘‘sections 4 and 5 of the Walsh-
Healey Act (41 U.S.C. 38, 39)’’ and substitute ‘‘sections 6507 and 
6508 of title 41’’. 
(21) In section 3707, strike ‘‘section 4 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 103 of 
title 41’’. 
(22) In section 6111(b)(2)(D), strike ‘‘section 3709 of the Revised 
Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 
41’’. 
(23) In section 8711(d), strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(24) In section 11101—
(A) in clause (1), strike ‘‘section 4 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 103 
of title 41’’; and 
(B) in clause (2), strike ‘‘section 4 of the Act (41 U.S.C. 403)’’ 
and substitute ‘‘section 132 of title 41’’. 
(m) TITLE 44.—Title 44, United States Code, is amended as follows: 
(1) In the chapter analysis for chapter 3, in the item for section 311, 
strike ‘‘the Federal Property and Administrative Services Act’’ and 
substitute ‘‘subtitle I of title 40 and part C of subtitle I of title 41’’. 
(2) In section 311—
(A) in the section heading, strike ‘‘the Federal Property and 
Administrative Services Act’’ and substitute ‘‘subtitle I of title 40 
and part C of subtitle I of title 41; 
(B) in subsection (a), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 
and substitute ‘‘part C of subtitle I of title 41’’; and 
(C) in subsection (c), strike ‘‘section 3709 of the Revised Stat-
utes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 
41’’. 
(n) TITLE 49.—Title 49, United States Code, is amended as follows:
197
(1) In section 103(e), strike ‘‘title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and sub-
stitute ‘‘part C of subtitle I of title 41’’. 
(2) In section 1113(b)(1)(B) strike ‘‘section 3709 of the Revised 
Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 
41’’. 
(3) In section 5334(j)(2), strike ‘‘Section 3709 of the Revised Stat-
utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
(4) In section 10721, strike ‘‘Section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
(5) In section 13712, strike ‘‘Section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
(6) In section 15504, strike ‘‘Section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’. 
(7) In section 40110—
(A) in subsection (d)(2)(A), strike ‘‘Title III of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
252–266)’’ and substitute ‘‘Part C of subtitle I of title 41’’; 
(B) in subsection (d)(2)(B), strike ‘‘The Office of Federal Pro-
curement Policy Act (41 U.S.C. 401 et seq.)’’ and substitute 
‘‘Part B of subtitle I of title 41’’; 
(C) in subsection (d)(2)(C), strike ‘‘, except for section 315 (41 
U.S.C. 265). For the purpose of applying section 315 of that Act 
to the system,’’ and substitute ‘‘. However, section 4705 of title 
41 shall apply to the new acquisition management system devel-
oped and implemented pursuant to paragraph (1). For the purpose 
of applying section 4705 of title 41 to the system,’’; and 
(D) in subsection (d)(3)—
(i) in the catchline, strike ‘‘THE OFFICE OF FEDERAL PRO-
CUREMENT POLICY ACT’’ and substitute ‘‘PART B OF SUB-
TITLE I OF TITLE 41’’; 
(ii) strike ‘‘section 27 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 423)’’ and substitute ‘‘chapter 21 of 
title 41’’; and 
(iii) in subparagraph (A), strike ‘‘Subsections (f) and (g)’’ 
and substitute ‘‘Sections 2101 and 2106 of title 41’’. 
(8) In section 40118(f)(2), strike ‘‘section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and substitute 
‘‘section 103 of title 41’’. 
(9) In section 47305(d), strike ‘‘Section 3709 of the Revised Stat-
utes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of title 41’’.
198 
SEC. 4. LEGISLATIVE PURPOSE AND CONSTRUCTION. 
(a) PURPOSE.—The purpose of this Act is to revise, codify, and enact 
without substantive change the general and permanent laws of the United 
States related to public contracts in order to remove ambiguities, contradic-
tions, and other imperfections and to repeal obsolete, superfluous, and su-
perseded provisions. 
(b) NO SUBSTANTIVE CHANGE.— 
(1) IN GENERAL.—This Act makes no substantive change in existing 
law and may not be construed as making a substantive change in exist-
ing law. 
(2) DEEMED DATE OF ENACTMENT FOR CERTAIN PURPOSES.—For 
purposes of determining whether one provision of law supersedes an-
other based on enactment later in time, and otherwise to ensure that 
this Act makes no substantive change in existing law, the date of enact-
ment of a provision restated in section 1 of this Act is deemed to re-
main unchanged, continuing to be the date of enactment of the under-
lying provision of public law that is being restated. 
(3) INCONSISTENT LAWS ENACTED AFTER DECEMBER 31, 2003.— 
This Act restates certain laws enacted before January 1, 2004. Any 
law enacted after December 31, 2003, that is inconsistent with this 
Act, including any law purporting to amend or repeal a provision that 
is repealed by this Act, supersedes this Act to the extent of the incon-
sistency. 
(c) REFERENCES.—A reference to a law replaced by section 1 of this Act, 
including a reference in a regulation, order, or other law, is deemed to refer 
to the corresponding provision enacted by this Act. 
(d) CONTINUING EFFECT.—An order, rule, or regulation in effect under 
a law replaced by section 1 of this Act continues in effect under the cor-
responding provision enacted by this Act until repealed, amended, or super-
seded. 
(e) ACTIONS AND OFFENSES UNDER PRIOR LAW.—An action taken or 
an offense committed under a law replaced by section 1 of this Act is 
deemed to have been taken or committed under the corresponding provision 
enacted by this Act. 
(f) INFERENCES.—An inference of a legislative construction is not to be 
drawn by reason of the location in the United States Code of a provision 
enacted by this Act or by reason of a caption or catch line of the provision. 
(g) SEVERABILITY.—If a provision enacted by this Act is held invalid, all 
valid provisions that are severable from the invalid provision remain in ef-
fect. If a provision enacted by this Act is held invalid in any of its applica-
199 
tions, the provision remains valid for all valid applications that are severable 
from any of the invalid applications. 
SEC. 5. REPEALS. 
(a) INFERENCE OF REPEAL.—The repeal of a law by this Act may not 
be construed as a legislative inference that the provision was or was not in 
effect before its repeal. 
(b) REPEALER SCHEDULE.—The laws specified in the following schedule 
are repealed, except for rights and duties that matured, penalties that were 
incurred, and proceedings that were begun before the date of enactment of 
this Act.