H. R. 1107—117 
contains the recommendations, the actions taken on the rec-
ommendations and the reasons for those actions, and an assessment 
of the effects of those actions on the Federal Government. The 
report shall be available to any Member of Congress on request. 
(i) RESTRICTION
ON DELEGATION.—The head of an executive 
agency may not delegate responsibilities under this section to an 
individual in a position below level IV of the Executive Schedule. 
CHAPTER 47—MISCELLANEOUS 
Sec. 
4701.
Determinations and decisions. 
4702.
Prohibition on release of contractor proposals. 
4703.
Validation of proprietary data restrictions. 
4704.
Prohibition of contractors limiting subcontractor sales directly to Federal 
Government. 
4705.
Protection of contractor employees from reprisal for disclosure of certain in-
formation. 
4706.
Examination of facilities and records of contractor. 
4707.
Remission of liquidated damages. 
4708.
Payment of reimbursable indirect costs in cost-type research and develop-
ment contracts with educational institutions. 
4709.
Implementation of electronic commerce capability. 
4710.
Limitations on tiering of subcontractors. 
4711.
Linking of award and incentive fees to acquisition outcomes. 
§ 4701. Determinations and decisions 
(a) INDIVIDUAL
OR
CLASS
DETERMINATIONS
AND
DECISIONS 
AUTHORIZED.— 
(1) IN GENERAL.—Determinations and decisions required to 
be made under this division by the head of an executive agency 
or provided in this division or chapters 1 to 11 of title 40 
to be made by the Administrator of General Services or other 
agency head may be made for an individual purchase or con-
tract or, except for determinations or decisions made under 
sections 3105, 3301, 3303 to 3305, 3306(a)–(e), and 3308, 
chapter 37, and section 4702 of this title or to the extent 
expressly prohibited by another law, for a class of purchases 
or contracts. 
(2) DELEGATION.—Except as provided in section 3304(a)(7) 
of this title, and except as provided in section 121(d)(1) and 
(2) of title 40 with respect to the Administrator of General 
Services, the agency head, in the discretion and subject to 
the direction of the agency head, may delegate powers provided 
by this division or chapters 1 to 11 of title 40, including the 
making of determinations and decisions described in paragraph 
(1), to other officers or officials of the agency. 
(3) FINALITY.—The determinations and decisions are final. 
(b) WRITTEN FINDINGS.— 
(1) BASIS FOR CERTAIN DETERMINATIONS.—Each determina-
tion or decision under section 3901, 3905, 4503, or 4706(d)(2)(B) 
of this title shall be based on a written finding by the individual 
making the determination or decision. A finding under section 
4503 or 4706(d)(2)(B) shall set out facts and circumstances 
that support the determination or decision. 
(2) FINALITY.—Each finding referred to in paragraph (1) is 
final. 
(3) MAINTAINING COPIES OF FINDINGS.—The head of an execu-
tive agency shall maintain for a period of not less than 6 
years a copy of each finding referred to in paragraph (1) that 
is made by an individual in that executive agency. The period
H. R. 1107—118 
begins on the date of the determination or decision to which 
the finding relates. 
§ 4702. Prohibition on release of contractor proposals 
(a) DEFINITION.—In this section, the term ‘‘proposal’’ means a 
proposal, including a technical, management, or cost proposal, sub-
mitted by a contractor in response to the requirements of a solicita-
tion for a competitive proposal. 
(b) PROHIBITION.—A proposal in the possession or control of an 
executive agency may not be made available to any person under 
section 552 of title 5. 
(c) NONAPPLICATION.—Subsection (b) does not apply to a proposal 
that is set forth or incorporated by reference in a contract entered 
into between the agency and the contractor that submitted the 
proposal. 
§ 4703. Validation of proprietary data restrictions 
(a) CONTRACT THAT PROVIDES
FOR DELIVERY
OF TECHNICAL 
DATA.—A contract for property or services entered into by an execu-
tive agency that provides for the delivery of technical data shall 
provide that— 
(1) a contractor or subcontractor at any tier shall be prepared 
to furnish to the contracting officer a written justification for 
any restriction the contractor or subcontractor asserts on the 
right of the Federal Government to use the data; and 
(2) the contracting officer may review the validity of a restric-
tion the contractor or subcontractor asserts under the contract 
on the right of the Federal Government to use technical data 
furnished to the Federal Government under the contract if 
the contracting officer determines that reasonable grounds exist 
to question the current validity of the asserted restriction and 
that the continued adherence to the asserted restriction by 
the Federal Government would make it impracticable to procure 
the item competitively at a later time. 
(b) CHALLENGE OF RESTRICTION.—If after a review the contracting 
officer determines that a challenge to the asserted restriction is 
warranted, the contracting officer shall provide written notice to 
the contractor or subcontractor asserting the restriction. The notice 
shall state— 
(1) the grounds for challenging the asserted restriction; and 
(2) the requirement for a response within 60 days justifying 
the current validity of the asserted restriction. 
(c) ADDITIONAL TIME FOR RESPONSES.—If a contractor or subcon-
tractor asserting a restriction subject to this section submits to 
the contracting officer a written request showing the need for addi-
tional time to comply with the requirement to justify the current 
validity of the asserted restriction, the contracting officer shall 
provide appropriate additional time to adequately permit the jus-
tification to be submitted. 
(d) MULTIPLE CHALLENGES.—If a party asserting a restriction 
receives notices of challenges to restrictions on technical data from 
more than one contracting officer, and notifies each contracting 
officer of the existence of more than one challenge, the contracting 
officer initiating the earliest challenge, after consultation with the 
party asserting the restriction and the other contracting officers, 
shall formulate a schedule of responses to each of the challenges 
that will afford the party asserting the restriction with an equitable 
opportunity to respond to each challenge.
H. R. 1107—119 
(e) DECISION ON VALIDITY OF ASSERTED RESTRICTION.— 
(1) NO RESPONSE SUBMITTED.—The contracting officer shall 
issue a decision pertaining to the validity of the asserted restric-
tion if the contractor or subcontractor does not submit a 
response under subsection (b). 
(2) RESPONSE SUBMITTED.—Within 60 days of receipt of a 
justification submitted in response to the notice provided pursu-
ant to subsection (b), a contracting officer shall issue a decision 
or notify the party asserting the restriction of the time within 
which a decision will be issued. 
(f) CLAIM DEEMED CLAIM WITHIN CHAPTER 71.—A claim per-
taining to the validity of the asserted restriction that is submitted 
in writing to a contracting officer by a contractor or subcontractor 
at any tier is deemed to be a claim within the meaning of chapter 
71 of this title. 
(g) FINAL DISPOSITION OF CHALLENGE.— 
(1) CHALLENGE
IS
SUSTAINED.—If the contracting officer’s 
challenge to the restriction on the right of the Federal Govern-
ment to use technical data is sustained on final disposition— 
(A) the restriction is cancelled; and 
(B) if the asserted restriction is found not to be substan-
tially justified, the contractor or subcontractor, as appro-
priate, is liable to the Federal Government for payment 
of the cost to the Federal Government of reviewing the 
asserted restriction and the fees and other expenses (as 
defined in section 2412(d)(2)(A) of title 28) incurred by 
the Federal Government in challenging the asserted restric-
tion, unless special circumstances would make the payment 
unjust. 
(2) CHALLENGE NOT SUSTAINED.—If the contracting officer’s 
challenge to the restriction on the right of the Federal Govern-
ment to use technical data is not sustained on final disposition, 
the Federal Government— 
(A) continues to be bound by the restriction; and 
(B) is liable for payment to the party asserting the restric-
tion for fees and other expenses (as defined in section 
2412(d)(2)(A) of title 28) incurred by the party asserting 
the restriction in defending the asserted restriction if the 
challenge by the Federal Government is found not to be 
made in good faith. 
§ 4704. Prohibition of contractors limiting subcontractor 
sales directly to Federal Government 
(a) CONTRACT RESTRICTIONS.—Each contract for the purchase 
of property or services made by an executive agency shall provide 
that the contractor will not— 
(1) enter into an agreement with a subcontractor under the 
contract that has the effect of unreasonably restricting sales 
by the subcontractor directly to the Federal Government of 
any item or process (including computer software) made or 
furnished by the subcontractor under the contract (or any fol-
low-on production contract); or 
(2) otherwise act to restrict unreasonably the ability of a 
subcontractor to make sales described in paragraph (1) to the 
Federal Government. 
(b) RIGHTS UNDER LAW PRESERVED.—This section does not pro-
hibit a contractor from asserting rights it otherwise has under 
law.