H. R. 1107—129 
(B) the surety on any bond connected with the contract; 
and 
(C) the disbursing officer, if any, designated in the con-
tract to make payment. 
(7) VALIDITY.—Notwithstanding any law to the contrary gov-
erning 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
CON-
TRACTS.— 
(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 Government designated by the President 
may, on a determination of need by the President, provide 
or be amended without consideration to provide that pay-
ments 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 pub-
lished in the Federal Register. 
(B) CARRYING OUT CONTRACT PROVISION.—When a ‘‘no 
reduction or setoff’’ provision as described in subparagraph 
(A) is included 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 
statute 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 
contributions, 
whether 
arising 
from 
or 
independently of the contract. 
(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 contract. 
§ 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 
entered 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
H. R. 1107—130 
(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 establish-
ments and availability of appropriations 
An order or contract placed with a Federal Government-owned 
establishment 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 private contractor is an obligation. 
Appropriations remain available to pay an obligation to a Federal 
Government-owned establishment just as appropriations 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 transpor-
tation. 
§ 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 individual who submits, in lieu of the birth certifi-
cate, 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 indi-
vidual 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 ingredients of any articles or supplies; 
or 
(B) the construction, reconstruction, repair, or installa-
tion 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 operating certifies to the employer 
to be necessary to the national defense. 
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.