164 
§ 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 
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. 
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165 
§ 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: 
(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 
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166 
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. 
(b) LIQUIDATED DAMAGES.—In addition to damages for any other breach 
of the contract, the party responsible for a breach or violation described in 
subsection (a) is liable to the Federal Government for the following liq-
uidated damages: 
(1) An amount equal to the sum of $10 per day for each individual 
under 16 years of age and each incarcerated individual knowingly em-
ployed in the performance of the contract. 
(2) An amount equal to the sum of each underpayment of wages due 
an employee engaged in the performance of the contract, including any 
underpayments arising from deductions, rebates, or refunds. 
(c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition to the 
Federal Government being entitled to damages described in subsection (b), 
the agency of the United States that made the contract may cancel the con-
tract and make open-market purchases or make other contracts for the com-
pletion of the original contract, charging any additional cost to the original 
contractor. 
(d) RECOVERY OF AMOUNTS DUE.—An amount due the Federal Govern-
ment because of a breach or violation described in subsection (a) may be 
withheld from any amounts owed the contractor under any contract under 
section 6502 of this title or may be recovered in a suit brought by the At-
torney General. 
(e) EMPLOYEE REIMBURSEMENT FOR UNDERPAYMENT OF WAGES.—An 
amount withheld or recovered under subsection (d) that is based on an un-
derpayment of wages as described in subsection (b)(2) shall be held in a 
special deposit account. On order of the Secretary, the amount shall be paid 
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