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§ 6301. Authorization requirement 
(a) IN GENERAL.—A contract or purchase on behalf of the Federal Gov-
ernment shall not be made unless the contract or purchase is authorized by 
law or is under an appropriation adequate to its fulfillment. 
(b) EXCEPTION.— 
(1) DEFINITION.—In this subsection, the term ‘‘defined Secretary’’ 
means— 
(A) the Secretary of Defense; or 
(B) the Secretary of the Department in which the Coast Guard 
is operating when the Coast Guard is not operating as a service 
in the Navy. 
(2) IN GENERAL.—Subsection (a) does not apply to a contract or 
purchase made by a defined Secretary for clothing, subsistence, forage, 
fuel, quarters, transportation, or medical and hospital supplies. 
(3) CURRENT YEAR LIMITATION.—A contract or purchase made by 
a defined Secretary under this subsection may not exceed the neces-
sities of the current year. 
(4) REPORTS.—The defined Secretary shall immediately advise Con-
gress when authority is exercised under this subsection. The defined 
Secretary shall report quarterly on the estimated obligations incurred 
pursuant to the authority granted in this subsection. 
(c) SPECIAL RULE FOR PURCHASE OF LAND.—Land may not be pur-
chased by the Federal Government unless the purchase is authorized by law. 
§ 6302. Contracts for fuel made by Secretary of the Army 
The Secretary of the Army, when the Secretary believes it is in the inter-
est of the United States, may enter into contracts and incur obligations for 
fuel in sufficient quantities to meet the requirements for one year without 
regard to the current fiscal year. Amounts appropriated for the fiscal year 
in which the contract is made or amounts appropriated or which may be 
appropriated for the following fiscal year may be used to pay for supplies 
delivered under a contract made pursuant to this section. 
§ 6303. Certain contracts limited to appropriated amounts 
A contract to erect, repair, or furnish a public building, or to make any 
public improvement, shall not be made on terms requiring the Federal Gov-
ernment to pay more than the amount specifically appropriated for the ac-
tivity covered by the contract. 
§ 6304. Certain contracts limited to one-year term 
Except as otherwise provided, an executive department shall not make a 
contract for stationery or other supplies for a term longer than one year 
from the time the contract is made. 
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§ 6305. Prohibition on transfer of contract and certain al-
lowable assignments 
(a) GENERAL PROHIBITION ON TRANSFER OF CONTRACTS.—The party 
to whom the Federal Government gives a contract or order may not transfer 
the contract or order, or any interest in the contract or order, to another 
party. A purported transfer in violation of this subsection annuls the con-
tract or order so far as the Federal Government is concerned, except that 
all rights of action for breach of contract are reserved to the Federal Gov-
ernment. 
(b) ASSIGNMENT.— 
(1) IN GENERAL.—Notwithstanding subsection (a) and in accordance 
with the requirements of this subsection, amounts due from the Fed-
eral Government under a contract may be assigned to a bank, trust 
company, Federal lending agency, or other financing institution. 
(2) MINIMUM AMOUNT.—This subsection applies only to a contract 
under which the aggregate amounts due from the Federal Government 
total at least $1,000. 
(3) ACCORD WITH CONTRACT TERMS.—Assignment may not be made 
under this subsection if the contract forbids the assignment. 
(4) FULL BALANCE DUE.—Unless otherwise expressly permitted by 
the contract, an assignment under this subsection must cover the bal-
ance of all amounts due from the Federal Government under the con-
tract. 
(5) SINGLE ASSIGNMENT.—Unless otherwise expressly permitted by 
the contract, an assignment under this subsection may not be made to 
more than one party or be subject to further assignment, except that 
assignment may be made to one party as agent or trustee for 2 or 
more parties participating in the financing. 
(6) WRITTEN NOTICE.—The assignee of an assignment under this 
subsection shall file written notice of the assignment and a true copy 
of the instrument of assignment with— 
(A) the contracting officer or head of the officer’s department 
or agency; 
(B) the surety on any bond connected with the contract; and 
(C) the disbursing officer, if any, designated in the contract to 
make payment. 
(7) VALIDITY.—Notwithstanding any law to the contrary governing 
the validity of assignments, an assignment under this subsection is a 
valid assignment for all purposes. 
(8) NO REFUND TO COVER ASSIGNOR’S LIABILITY.—The assignee of 
an assignment under this subsection is not liable to make any refund 
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to the Federal Government because of an assignor’s liability to the 
Federal Government, whether that liability arises from the contract or 
independently. 
(9) AVOIDING REDUCTION OR SETOFF WITH CERTAIN CONTRACTS.— 
(A) CONTRACT PROVISION.—A contract of the Department of 
Defense, the General Services Administration, the Department of 
Energy, or another department or agency of the Federal Govern-
ment designated by the President may, on a determination of need 
by the President, provide or be amended without consideration to 
provide that payments made to an assignee under the contract are 
not subject to reduction or setoff. Each determination of need by 
the President under this subparagraph shall be published in the 
Federal Register. 
(B) CARRYING OUT CONTRACT PROVISION.—When a ‘‘no reduc-
tion or setoff’’ provision as described in subparagraph (A) is in-
cluded in a contract, payments to the assignee are not subject to 
reduction or setoff for an assignor’s liability arising— 
(i) independently of the contract; 
(ii) on account of renegotiation under a renegotiation stat-
ute or under a statutory renegotiation article in the contract; 
(iii) on account of fines; 
(iv) on account of penalties; or 
(v) on account of taxes, social security contributions, or the 
withholding or non-withholding of taxes or social security con-
tributions, whether arising from or independently of the con-
tract. 
(C) LIMITATION.—Subparagraph (B)(iv) does not apply to 
amounts which may be collected or withheld from the assignor in 
accordance with or for failure to comply with the terms of the con-
tract. 
§ 6306. Prohibition on Members of Congress making con-
tracts with Federal Government 
(a) IN GENERAL.—A Member of Congress may not enter into or benefit 
from a contract or agreement or any part of a contract or agreement with 
the Federal Government. 
(b) EXEMPTIONS.— 
(1) IN GENERAL.—Subsection (a) does not apply to contracts that 
the Secretary of Agriculture may enter into with farmers. 
(2) CERTAIN ACTS.—Subsection (a) does not apply to a contract en-
tered into under— 
(A) the Agricultural Adjustment Act (7 U.S.C. 601 et seq.); 
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(B) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); or 
(C) the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.). 
(3) PUBLIC RECORD.—An exemption under this subsection shall be 
made a matter of public record. 
§ 6307. Contracts with Federal Government-owned estab-
lishments and availability of appropriations 
An order or contract placed with a Federal Government-owned establish-
ment for work, material, or the manufacture of material pertaining to an 
approved project is deemed to be an obligation in the same manner that 
a similar order or contract placed with a commercial manufacturer or pri-
vate contractor is an obligation. Appropriations remain available to pay an 
obligation to a Federal Government-owned establishment just as appropria-
tions remain available to pay an obligation to a commercial manufacturer 
or private contractor. 
§ 6308. Contracts for transportation of Federal Government 
securities 
When practicable, a contract for transporting bullion, cash, or securities 
of the Federal Government shall be awarded to the lowest responsible bidder 
after notice to all parties with means of transportation. 
§ 6309. Honorable discharge certificate in lieu of birth cer-
tificate 
(a) IN GENERAL.—An employer described in subsection (b) may not deny 
employment, on account of failure to produce a birth certificate, to an indi-
vidual who submits, in lieu of the birth certificate, an honorable discharge 
certificate (or certificate issued in lieu of an honorable discharge certificate) 
from the Army, Air Force, Navy, Marine Corps, or Coast Guard of the 
United States, unless the honorable discharge certificate shows on its face 
that the individual may have been an alien at the time of its issuance. 
(b) EMPLOYERS TO WHICH SECTION APPLIES.—An employer referred to 
in subsection (a) is an employer— 
(1) engaged in— 
(A) the production, maintenance, or storage of arms, armament, 
ammunition, implements of war, munitions, machinery, tools, 
clothing, food, fuel, or any articles or supplies, or parts or ingredi-
ents of any articles or supplies; or 
(B) the construction, reconstruction, repair, or installation of a 
building, plant, structure, or facility; and 
(2) engaged in the activity described in paragraph (1) under— 
(A) a contract with the Federal Government; or 
(B) any contract that the President, the Secretary of the Army, 
the Secretary of the Air Force, the Secretary of the Navy, or the 
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