174 
(2) BRINGING ACTIONS AGAINST CONTRACTORS.—If the accrued pay-
ments withheld under the terms of the contract are insufficient to reim-
burse a service employee with respect to whom there has been a failure 
to pay the compensation required pursuant to this chapter, the Federal 
Government may bring action against the contractor, subcontractor, or 
any sureties in any court of competent jurisdiction to recover the re-
maining amount of underpayment. Any amount recovered shall be held 
in the deposit fund and shall be paid, on order of the Secretary, di-
rectly to the underpaid employee. Any amount not paid to an employee 
because of inability to do so within 3 years shall be covered into the 
Treasury as miscellaneous receipts. 
(c) CANCELLATION
AND ALTERNATIVE COMPLETION.—In addition to 
other actions in accordance with this section, when a violation of any con-
tract stipulation is found, the Federal agency that made the contract may 
cancel the contract on written notice to the original contractor. The Federal 
Government may then make other contracts or arrangements for the com-
pletion of the original contract, charging any additional cost to the original 
contractor. 
(d) ENFORCEMENT OF SECTION.—In accordance with regulations pre-
scribed pursuant to section 6707(a)–(d) of this title, the Secretary or the 
head of a Federal agency may carry out this section. 
§ 6706. Three-year prohibition on new contracts in case of 
violation 
(a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to 
each agency of the Federal Government a list containing the names of per-
sons or firms that a Federal agency or the Secretary has found to have vio-
lated this chapter. 
(b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends oth-
erwise because of unusual circumstances, a Federal Government contract 
may not be awarded to a person or firm named on the list under subsection 
(a), or to an entity in which the person or firm has a substantial interest, 
until 3 years have elapsed from the date of publication of the list. If the 
Secretary does not recommend otherwise because of unusual circumstances, 
the Secretary shall, not later than 90 days after a hearing examiner has 
made a finding of a violation of this chapter, forward to the Comptroller 
General the name of the person or firm found to have violated this chapter. 
§ 6707. Enforcement and administration of chapter 
(a) ENFORCEMENT OF CHAPTER.—Sections 6506 and 6507 of this title 
govern the Secretary’s authority to enforce this chapter, including the Sec-
retary’s authority to prescribe regulations, issue orders, hold hearings, make 
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decisions based on findings of fact, and take other appropriate action under 
this chapter. 
(b) LIMITATIONS
AND REGULATIONS
FOR VARIATIONS, TOLERANCES, 
AND EXEMPTIONS.—The Secretary may provide reasonable limitations and 
may prescribe regulations allowing reasonable variation, tolerances, and ex-
emptions with respect to this chapter (other than subsection (f)), but only 
in special circumstances where the Secretary determines that the limitation, 
variation, tolerance, or exemption is necessary and proper in the public in-
terest or to avoid the serious impairment of Federal Government business, 
and is in accord with the remedial purpose of this chapter to protect pre-
vailing labor standards. 
(c) PRESERVATION
OF WAGES
AND BENEFITS DUE UNDER PREDE-
CESSOR CONTRACTS.— 
(1) IN GENERAL.—Under a contract which succeeds a contract sub-
ject to this chapter, and under which substantially the same services 
are furnished, a contractor or subcontractor may not pay a service em-
ployee less than the wages and fringe benefits the service employee 
would have received under the predecessor contract, including accrued 
wages and fringe benefits and any prospective increases in wages and 
fringe benefits provided for in a collective-bargaining agreement as a 
result of arm’s-length negotiations. 
(2) EXCEPTION.—This subsection does not apply if the Secretary 
finds after a hearing in accordance with regulations adopted by the 
Secretary that wages and fringe benefits under the predecessor con-
tract are substantially at variance with wages and fringe benefits pre-
vailing in the same locality for services of a similar character. 
(d) DURATION OF CONTRACTS.—Subject to limitations in annual appro-
priation acts but notwithstanding any other law, a contract to which this 
chapter applies may, if authorized by the Secretary, be for any term of 
years not exceeding 5, if the contract provides for periodic adjustment of 
wages and fringe benefits pursuant to future determinations, issued in the 
manner prescribed in section 6703 of this title at least once every 2 years 
during the term of the contract, covering each class of service employee. 
(e) EXCLUSION OF FRINGE BENEFIT PAYMENTS IN DETERMINING OVER-
TIME PAY.—In determining any overtime pay to which a service employee 
is entitled under Federal law, the regular or basic hourly rate of pay of the 
service employee does not include any fringe benefit payments computed 
under this chapter which are excluded from the definition of ‘‘regular rate’’ 
under section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
207(e)). 
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(f) TIMELINESS OF WAGE AND FRINGE BENEFIT DETERMINATIONS.—It 
is the intent of Congress that determinations of minimum wages and fringe 
benefits under section 6703(1) and (2) of this title should be made as soon 
as administratively feasible for all contracts subject to this chapter. In any 
event, the Secretary shall at least make the determinations for contracts 
under which more than 5 service employees are to be employed. 
Subtitle III—Contract Disputes 
Chapter 
Sec. 
71. Contract Disputes .............................................................................................
7101 
CHAPTER 71—CONTRACT DISPUTES 
Sec. 
7101.
Definitions. 
7102.
Applicability of chapter. 
7103.
Decision by contracting officer. 
7104.
Contractor’s right of appeal from decision by contracting officer. 
7105.
Agency boards. 
7106.
Agency board procedures for accelerated and small claims. 
7107.
Judicial review of agency board decisions. 
7108.
Payment of claims. 
7109.
Interest. 
§ 7101. Definitions 
In this chapter: 
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Admin-
istrator for Federal Procurement Policy appointed pursuant to section 
1102 of this title. 
(2) AGENCY BOARD OR AGENCY BOARD OF CONTRACT APPEALS.— 
The term ‘‘agency board’’ or ‘‘agency board of contract appeals’’ 
means— 
(A) the Armed Services Board; 
(B) the Civilian Board; 
(C) the board of contract appeals of the Tennessee Valley Au-
thority; or 
(D) the Postal Service Board established under section 
7105(d)(1) of this title. 
(3) AGENCY HEAD.—The term ‘‘agency head’’ means the head and 
any assistant head of an executive agency. The term may include the 
chief official of a principal division of an executive agency if the head 
of the executive agency so designates that chief official. 
(4) ARMED SERVICES BOARD.—The term ‘‘Armed Services Board’’ 
means the Armed Services Board of Contract Appeals established 
under section 7105(a)(1) of this title. 
(5) CIVILIAN BOARD.—The term ‘‘Civilian Board’’ means the Civil-
ian Board of Contract Appeals established under section 7105(b)(1) of 
this title. 
(6) CONTRACTING OFFICER.—The term ‘‘contracting officer’’— 
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(A) means an individual who, by appointment in accordance 
with applicable regulations, has the authority to make and admin-
ister contracts and to make determinations and findings with re-
spect to contracts; and 
(B) includes an authorized representative of the contracting of-
ficer, acting within the limits of the representative’s authority. 
(7) CONTRACTOR.—The term ‘‘contractor’’ means a party to a Fed-
eral Government contract other than the Federal Government. 
(8) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ means— 
(A) an executive department as defined in section 101 of title 
5; 
(B) a military department as defined in section 102 of title 5; 
(C) an independent establishment as defined in section 104 of 
title 5, except that the term does not include the Government Ac-
countability Office; and 
(D) a wholly owned Government corporation as defined in sec-
tion 9101(3) of title 31. 
(9) MISREPRESENTATION OF FACT.—The term ‘‘misrepresentation 
of fact’’ means a false statement of substantive fact, or conduct that 
leads to a belief of a substantive fact material to proper understanding 
of the matter in hand, made with intent to deceive or mislead. 
§ 7102. Applicability of chapter 
(a) EXECUTIVE AGENCY CONTRACTS.—Unless otherwise specifically pro-
vided in this chapter, this chapter applies to any express or implied contract 
(including those of the nonappropriated fund activities described in sections 
1346 and 1491 of title 28) made by an executive agency for— 
(1) the procurement of property, other than real property in being; 
(2) the procurement of services; 
(3) the procurement of construction, alteration, repair, or mainte-
nance of real property; or 
(4) the disposal of personal property. 
(b) TENNESSEE VALLEY AUTHORITY CONTRACTS.— 
(1) IN GENERAL.—With respect to contracts of the Tennessee Valley 
Authority, this chapter applies only to contracts containing a clause 
that requires contract disputes to be resolved through an agency ad-
ministrative process. 
(2) EXCLUSION.—Notwithstanding any other provision of this chap-
ter, this chapter does not apply to a contract of the Tennessee Valley 
Authority for the sale of fertilizer or electric power or related to the 
conduct or operation of the electric power system. 
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