135 
a report on the exercise of the authority during the preceding year and 
the reasons why the authority was exercised in any instance. 
(d) AUTHORITY OF COMPTROLLER GENERAL.— 
(1) IN GENERAL.—Except as provided in paragraph (2), each con-
tract awarded after using procedures other than sealed bid procedures 
shall provide that the Comptroller General and representatives of the 
Comptroller General may examine records of the contractor, or any of 
its subcontractors, that directly pertain to, and involve transactions re-
lating to, the contract or subcontract. 
(2) EXCEPTION FOR FOREIGN CONTRACTOR OR SUBCONTRACTOR.— 
Paragraph (1) does not apply to a contract or subcontract with a for-
eign contractor or foreign subcontractor if the executive agency con-
cerned determines, with the concurrence of the Comptroller General or 
the designee of the Comptroller General, that applying paragraph (1) 
to the contract or subcontract would not be in the public interest. The 
concurrence of the Comptroller General or the designee is not required 
when— 
(A) the contractor or subcontractor is— 
(i) the government of a foreign country or an agency of 
that government; or 
(ii) precluded by the laws of the country involved from 
making its records available for examination; and 
(B) the executive agency determines, after taking into account 
the price and availability of the property and services from United 
States sources, that the public interest would be best served by not 
applying paragraph (1). 
(3) ADDITIONAL RECORDS NOT REQUIRED.—Paragraph (1) does not 
require a contractor or subcontractor to create or maintain a record 
that the contractor or subcontractor does not maintain in the ordinary 
course of business or pursuant to another law. 
(e) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.—An execu-
tive agency may not perform an audit of indirect costs under a contract, 
subcontract, or modification before or after entering into the contract, sub-
contract, or modification when the contracting officer determines that the 
objectives of the audit can reasonably be met by accepting the results of 
an audit that was conducted by another department or agency of the Fed-
eral Government within one year preceding the date of the contracting offi-
cer’s determination. 
(f) EXPIRATION OF AUTHORITY.—The authority of an executive agency 
under subsection (b) and the authority of the Comptroller General under 
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subsection (d) shall expire 3 years after final payment under the contract 
or subcontract. 
(g) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not 
apply to the following contracts: 
(1) Contracts for utility services at rates not exceeding those estab-
lished to apply uniformly to the public, plus any applicable reasonable 
connection charge. 
(2) A contract or subcontract that is not greater than the simplified 
acquisition threshold. 
(h) ELECTRONIC FORM ALLOWED.—This section does not preclude a con-
tractor from duplicating or storing original records in electronic form. 
(i) ORIGINAL RECORDS NOT REQUIRED.—An executive agency shall not 
require a contractor or subcontractor to provide original records in an audit 
carried out pursuant to this section if the contractor or subcontractor pro-
vides photographic or electronic images of the original records and meets 
the following requirements: 
(1) PRESERVATION PROCEDURES ESTABLISHED.—The contractor or 
subcontractor has established procedures to ensure that the imaging 
process preserves the integrity, reliability, and security of the original 
records. 
(2) INDEXING
SYSTEM
MAINTAINED.—The contractor or subcon-
tractor maintains an effective indexing system to permit timely and 
convenient access to the imaged records. 
(3) ORIGINAL
RECORDS
RETAINED.—The contractor or subcon-
tractor retains the original records for a minimum of one year after 
imaging to permit periodic validation of the imaging systems. 
§ 4707. Remission of liquidated damages 
When a contract made on behalf of the Federal Government by the head 
of a Federal agency, or by an authorized officer of the agency, includes a 
provision for liquidated damages for delay, the Secretary of the Treasury 
on recommendation of the head of the agency may remit any part of the 
damages as the Secretary of the Treasury believes is just and equitable. 
§ 4708. Payment of reimbursable indirect costs in cost-type 
research and development contracts with edu-
cational institutions 
A cost-type research and development contract (including a grant) with 
a university, college, or other educational institution may provide for pay-
ment of reimbursable indirect costs on the basis of predetermined fixed-per-
centage rates applied to the total of the reimbursable direct costs incurred 
or to an element of the total of the reimbursable direct costs incurred. 
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§ 4709. Implementation of electronic commerce capability 
(a) ROLE OF HEAD OF EXECUTIVE AGENCY.—The head of each execu-
tive agency shall implement the electronic commerce capability required by 
section 2301 of this title. In implementing the capability, the head of an 
executive agency shall consult with the Administrator. 
(b) PROGRAM MANAGER.—The head of each executive agency shall des-
ignate a program manager to implement the electronic commerce capability 
for the agency. The program manager reports directly to an official at a 
level not lower than the senior procurement executive designated for the 
agency under section 1702(c) of this title. 
Subtitle II—Other Advertising and Contract 
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 
CHAPTER 61—ADVERTISING 
Sec. 
6101.
Advertising requirement for Federal Government purchases and sales. 
6102.
Exceptions from advertising requirement. 
6103.
Opening of bids. 
§ 6101. Advertising requirement for Federal Government 
purchases and sales 
(a) DEFINITIONS.—In this section— 
(1) APPROPRIATION.—The term ‘‘appropriation’’ includes amounts 
made available by legislation under section 9104 of title 31. 
(2) FEDERAL GOVERNMENT.—The term ‘‘Federal Government’’ in-
cludes the government of the District of Columbia. 
(b) PURCHASES.— 
(1) IN GENERAL.—Unless otherwise provided in the appropriation 
concerned or other law, purchases and contracts for supplies or services 
for the Federal Government may be made or entered into only after 
advertising a sufficient time previously for proposals. 
(2) LIMITATIONS ON APPLICABILITY.—Paragraph (1) does not apply 
when— 
(A) the amount involved in any one case does not exceed 
$25,000; 
(B) public exigencies require the immediate delivery of articles 
or performance of services; 
(C) only one source of supply is available and the Federal Gov-
ernment purchasing or contracting officer so certifies; or 
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(D) services are required to be performed by a contractor in 
person and are— 
(i) of a technical and professional nature; or 
(ii) under Federal Government supervision and paid for on 
a time basis. 
(c) SALES.—Except when otherwise authorized by law or when the rea-
sonable value involved in any one case does not exceed $500, sales and con-
tracts of sale by the Federal Government are governed by the requirements 
of this section for advertising. 
(d) APPLICATION TO WHOLLY OWNED GOVERNMENT CORPORATIONS.— 
For wholly owned Government corporations, this section applies only to ad-
ministrative transactions. 
§ 6102. Exceptions from advertising requirement 
(a) AMERICAN BATTLE MONUMENTS COMMISSION.—Section 6101 of this 
title does not apply to the American Battle Monuments Commission with 
respect to leases in foreign countries for office or garage space. 
(b) BUREAU
OF INTERPARLIAMENTARY UNION
FOR PROMOTION
OF 
INTERNATIONAL ARBITRATION.—Section 6101 of this title does not apply 
to the Bureau of Interparliamentary Union for Promotion of International 
Arbitration with respect to necessary stenographic reporting services by con-
tract. 
(c) DEPARTMENT OF STATE.—Section 6101 of this title does not apply 
to the Department of State when the purchase or service relates to the 
packing of personal and household effects of Diplomatic, Consular, and For-
eign Service officers and clerks for foreign shipment. 
(d) INTERNATIONAL COMMITTEE OF AERIAL LEGAL EXPERTS.—Section 
6101 of this title does not apply to the International Committee of Aerial 
Legal Experts with respect to necessary stenographic and other services by 
contract. 
(e) ARCHITECT OF THE CAPITOL.—The purchase of supplies and equip-
ment and the procurement of services for all branches under the Architect 
of the Capitol may be made in the open market according to common busi-
ness practice, without compliance with section 6101 of this title, when the 
aggregate amount of the purchase or the service does not exceed $25,000 
in any instance. 
(f) FOREST PRODUCTS FROM INDIAN RESERVATIONS.—Lumber and 
other forest products produced by Indian enterprises from forests on Indian 
reservations may be sold under regulations the Secretary of the Interior pre-
scribes, without compliance with section 6101 of this title. 
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