139 
(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 
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. 
VerDate Aug 31 2005 
22:59 Jun 06, 2006
Jkt 049200
PO 00000
Frm 00139
Fmt 6652
Sfmt 6221
E:\BILLS\H5414.IH
H5414
sroberts on PROD1PC70 with BILLS
140 
§ 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.); 
(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— 
VerDate Aug 31 2005 
22:59 Jun 06, 2006
Jkt 049200
PO 00000
Frm 00140
Fmt 6652
Sfmt 6221
E:\BILLS\H5414.IH
H5414
sroberts on PROD1PC70 with BILLS
141 
(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 
Secretary of the Department in which the Coast Guard is oper-
ating certifies to the employer to be necessary to the national de-
fense. 
CHAPTER 65—CONTRACTS FOR MATERIALS, SUPPLIES, 
ARTICLES, AND EQUIPMENT EXCEEDING $10,000 
Sec. 
6501.
Definitions. 
6502.
Required contract terms. 
6503.
Breach or violation of required contract terms. 
6504.
Three-year prohibition on new contracts in case of breach or violation. 
6505.
Exclusions. 
6506.
Administrative provisions. 
6507.
Hearing authority and procedures. 
6508.
Authority to make exceptions. 
6509.
Other procedures. 
6510.
Manufacturers and regular dealers. 
6511.
Effect on other law. 
§ 6501. Definitions 
In this chapter— 
(1) AGENCY OF THE UNITED STATES.—The term ‘‘agency of the 
United States’’ means an executive department, independent establish-
ment, or other agency or instrumentality of the United States, the Dis-
trict of Columbia, or a corporation in which all stock is beneficially 
owned by the Federal Government. 
(2) PERSON.—The term ‘‘person’’ includes one or more individuals, 
partnerships, associations, corporations, legal representatives, trustees, 
trustees in cases under title 11, or receivers. 
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of 
Labor. 
§ 6502. Required contract terms 
A contract made by an agency of the United States for the manufacture 
or furnishing of materials, supplies, articles, or equipment, in an amount 
exceeding $10,000, shall include the following representations and stipula-
tions: 
VerDate Aug 31 2005 
22:59 Jun 06, 2006
Jkt 049200
PO 00000
Frm 00141
Fmt 6652
Sfmt 6221
E:\BILLS\H5414.IH
H5414
sroberts on PROD1PC70 with BILLS
142 
(1) MINIMUM WAGES TO BE PAID.—All individuals employed by the 
contractor in the manufacture or furnishing of materials, supplies, arti-
cles, or equipment under the contract will be paid, without subsequent 
deduction or rebate on any account, not less than the prevailing min-
imum wages, as determined by the Secretary, for individuals employed 
in similar work or in the particular or similar industries or groups of 
industries currently operating in the locality in which the materials, 
supplies, articles, or equipment are to be manufactured or furnished 
under the contract, except that this paragraph applies only to pur-
chases or contracts relating to industries that have been the subject 
matter of a determination by the Secretary. 
(2) MAXIMUM NUMBER OF HOURS TO BE WORKED IN A WEEK.—No 
individual employed by the contractor in the manufacture or furnishing 
of materials, supplies, articles, or equipment under the contract shall 
be permitted to work in excess of 40 hours in any one week, except 
that this paragraph does not apply to an employer who has entered 
into an agreement with employees pursuant to paragraph (1) or (2) of 
section 7(b) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
207(b)(1) or (2)). 
(3) INELIGIBLE EMPLOYEES.—No individual under 16 years of age 
and no incarcerated individual will be employed by the contractor in 
the manufacture or furnishing of materials, supplies, articles, or equip-
ment under the contract, except that this section, or other law or exec-
utive order containing similar prohibitions against the purchase of 
goods by the Federal Government, does not apply to convict labor that 
satisfies the conditions of section 1761(c) of title 18. 
(4) STANDARDS OF PLACES AND WORKING CONDITIONS WHERE CON-
TRACT PERFORMED.—No part of the contract will be performed, and 
no materials, supplies, articles, or equipment will be manufactured or 
fabricated under the contract, in plants, factories, buildings, or sur-
roundings, or under working conditions, that are unsanitary, haz-
ardous, or dangerous to the health and safety of employees engaged in 
the performance of the contract. Compliance with the safety, sanitary, 
and factory inspection laws of the State in which the work or part of 
the work is to be performed is prima facie evidence of compliance with 
this paragraph. 
§ 6503. Breach or violation of required contract terms 
(a) APPLICABLE BREACH OR VIOLATION.—This section applies in case of 
breach or violation of a representation or stipulation included in a contract 
under section 6502 of this title. 
VerDate Aug 31 2005 
22:59 Jun 06, 2006
Jkt 049200
PO 00000
Frm 00142
Fmt 6652
Sfmt 6221
E:\BILLS\H5414.IH
H5414
sroberts on PROD1PC70 with BILLS