123 
(B) CONTENT OF REGULATIONS.—Regulations issued for the 
purpose of subparagraph (A) shall provide for appropriate consid-
eration of the complexity of procurement litigation, generally ac-
cepted principles governing the award of legal fees in civil actions 
involving the Federal Government as a party, and other factors as 
may be appropriate. 
(3) WHEN OTHERWISE ALLOWABLE COSTS ARE NOT ALLOWABLE.— 
In the case of a proceeding referred to in paragraph (1), contractor 
costs otherwise allowable as reimbursable costs under this subsection 
are not allowable if— 
(A) the proceeding involves the same contractor misconduct al-
leged as the basis of another criminal, civil, or administrative pro-
ceeding; and 
(B) the costs of the other proceeding are not allowable under 
subsection (b). 
CHAPTER 45—CONTRACT FINANCING 
Sec. 
4501.
Authority of executive agency. 
4502.
Payment. 
4503.
Security for advance payments. 
4504.
Conditions for progress payments. 
4505.
Payments for commercial items. 
4506.
Action in case of fraud. 
§ 4501. Authority of executive agency 
An executive agency may— 
(1) make advance, partial, progress or other payments under con-
tracts for property or services made by the agency; and 
(2) insert in solicitations for procurement of property or services a 
provision limiting to small business concerns advance or progress pay-
ments. 
§ 4502. Payment 
(a) BASIS FOR PAYMENT.—When practicable, payments under section 
4501 of this title shall be made on any of the following bases: 
(1) Performance measured by objective, quantifiable methods such as 
delivery of acceptable items, work measurement, or statistical process 
controls. 
(2) Accomplishment of events defined in the program management 
plan. 
(3) Other quantifiable measures of results. 
(b) PAYMENT AMOUNT.—Payments made under section 4501 of this title 
may not exceed the unpaid contract price. 
§ 4503. Security for advance payments 
Advance payments under section 4501 of this title may be made only on 
adequate security and a determination by the agency head that to do so 
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would be in the public interest. The security may be in the form of a lien 
in favor of the Federal Government on the property contracted for, on the 
balance in an account in which the payments are deposited, and on such 
of the property acquired for performance of the contract as the parties may 
agree. This lien shall be paramount to all other liens and is effective imme-
diately upon the first advancement of funds without filing, notice, or any 
other action by the Federal Government. 
§ 4504. Conditions for progress payments 
(a) PAYMENT COMMENSURATE WITH WORK.—The executive agency shall 
ensure that a payment for work in progress (including materials, labor, and 
other items) under a contract of an executive agency that provides for those 
payments is commensurate with the work accomplished that meets stand-
ards established under the contract. The contractor shall provide informa-
tion and evidence the executive agency determines is necessary to permit the 
executive agency to carry out this subsection. 
(b) LIMITATION.—The executive agency shall ensure that progress pay-
ments referred to in subsection (a) are not made for more than 80 percent 
of the work accomplished under the contract as long as the executive agency 
has not made the contractual terms, specifications, and price definite. 
(c) APPLICATION.—This section applies to a contract in an amount great-
er than $25,000. 
§ 4505. Payments for commercial items 
(a) TERMS AND CONDITIONS FOR PAYMENTS.—Payments under section 
4501 of this title for commercial items may be made under terms and condi-
tions that the head of the executive agency determines are appropriate or 
customary in the commercial marketplace and are in the best interests of 
the Federal Government. 
(b) SECURITY FOR PAYMENTS.—The head of the executive agency shall 
obtain adequate security for the payments. If the security is in the form 
of a lien in favor of the Federal Government, the lien is paramount to all 
other liens and is effective immediately on the first payment, without filing, 
notice, or other action by the Federal Government. 
(c) LIMITATION
ON ADVANCE PAYMENTS.—Advance payments made 
under section 4501 of this title for commercial items may include payments, 
in a total amount not more than 15 percent of the contract price, in ad-
vance of any performance of work under the contract. 
(d) NONAPPLICATION OF CERTAIN CONDITIONS.—The conditions of sec-
tions 4503 and 4504 of this title need not be applied if they would be incon-
sistent, as determined by the head of the executive agency, with commercial 
terms and conditions pursuant to this section. 
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§ 4506. Action in case of fraud 
(a) DEFINITION.—In this section, the term ‘‘remedy coordination offi-
cial’’, with respect to an executive agency, means the individual or entity 
in that executive agency who coordinates within that executive agency the 
administration of criminal, civil, administrative, and contractual remedies 
resulting from investigations of fraud or corruption related to procurement 
activities. 
(b) RECOMMENDATION TO REDUCE OR SUSPEND PAYMENTS.—In any 
case in which the remedy coordination official of an executive agency finds 
that there is substantial evidence that the request of a contractor for ad-
vance, partial, or progress payment under a contract awarded by that execu-
tive agency is based on fraud, the remedy coordination official shall rec-
ommend that the executive agency reduce or suspend further payments to 
that contractor. 
(c) REDUCTION OR SUSPENSION OF PAYMENTS.—The head of an execu-
tive agency receiving a recommendation under subsection (b) in the case of 
a contractor’s request for payment under a contract shall determine whether 
there is substantial evidence that the request is based on fraud. On making 
an affirmative determination, the head of the executive agency may reduce 
or suspend further payments to the contractor under the contract. 
(d) EXTENT OF REDUCTION OR SUSPENSION.—The extent of any reduc-
tion or suspension of payments by an executive agency under subsection (c) 
on the basis of fraud shall be reasonably commensurate with the anticipated 
loss to the Federal Government resulting from the fraud. 
(e) WRITTEN JUSTIFICATION.—A written justification for each decision 
of the head of an executive agency whether to reduce or suspend payments 
under subsection (c), and for each recommendation received by the executive 
agency in connection with the decision, shall be prepared and be retained 
in the files of the executive agency. 
(f) NOTICE.—The head of each executive agency shall prescribe proce-
dures to ensure that, before the head of the executive agency decides to re-
duce or suspend payments in the case of a contractor under subsection (c), 
the contractor is afforded notice of the proposed reduction or suspension 
and an opportunity to submit matters to the executive agency in response 
to the proposed reduction or suspension. 
(g) REVIEW.—Not later than 180 days after the date on which the head 
of an executive agency reduces or suspends payments to a contractor under 
subsection (c), the remedy coordination official of the executive agency 
shall— 
(1) review the determination of fraud on which the reduction or sus-
pension is based; and 
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(2) transmit a recommendation to the head of the executive agency 
whether the suspension or reduction should continue. 
(h) REPORT.—The head of each executive agency who receives rec-
ommendations made by the remedy coordination official of the executive 
agency to reduce or suspend payments under subsection (c) during a fiscal 
year shall prepare for that year a report that contains the recommendations, 
the actions taken on the recommendations and the reasons for those actions, 
and an assessment of the effects of those actions on the Federal Govern-
ment. 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 po-
sition 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 information. 
4706.
Examination of facilities and records of contractor. 
4707.
Remission of liquidated damages. 
4708.
Payment of reimbursable indirect costs in cost-type research and development contracts 
with educational institutions. 
4709.
Implementation of electronic commerce capability. 
§ 4701. Determinations and decisions 
(a) INDIVIDUAL OR CLASS DETERMINATIONS AND DECISIONS AUTHOR-
IZED.— 
(1) IN GENERAL.—Determinations and decisions required to be made 
under this part by the head of an executive agency or provided in this 
part 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 indi-
vidual purchase or contract or, except for determinations or decisions 
made under sections 3105, 3301 to 3305(e), and 3307, chapter 37, and 
section 4702 of this title or to the extent expressly prohibited by an-
other law, for a class of purchases or contracts. 
(2) DELEGATION.—Except as provided in section 3303(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 part 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.— 
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