151 
(1) MINIMUM WAGE.—The contract and bid specification shall con-
tain a provision specifying the minimum wage to be paid to each class 
of service employee engaged in the performance of the contract or any 
subcontract, as determined by the Secretary or the Secretary’s author-
ized representative, in accordance with prevailing rates in the locality, 
or, where a collective-bargaining agreement covers the service employ-
ees, in accordance with the rates provided for in the agreement, includ-
ing prospective wage increases provided for in the agreement as a re-
sult of arm’s length negotiations. In any case the minimum wage may 
not be less than the minimum wage specified in section 6704 of this 
title. 
(2) FRINGE BENEFITS.—The contract and bid specification shall 
contain a provision specifying the fringe benefits to be provided to each 
class of service employee engaged in the performance of the contract 
or any subcontract, as determined by the Secretary or the Secretary’s 
authorized representative to be prevailing in the locality, or, where a 
collective-bargaining agreement covers the service employees, to be pro-
vided for under the agreement, including prospective fringe benefit in-
creases provided for in the agreement as a result of arm’s-length nego-
tiations. The fringe benefits shall include medical or hospital care, pen-
sions on retirement or death, compensation for injuries or illness result-
ing from occupational activity, or insurance to provide any of the fore-
going, unemployment benefits, life insurance, disability and sickness in-
surance, accident insurance, vacation and holiday pay, costs of appren-
ticeship or other similar programs and other bona fide fringe benefits 
not otherwise required by Federal, State, or local law to be provided 
by the contractor or subcontractor. The obligation under this para-
graph may be discharged by furnishing any equivalent combinations of 
fringe benefits or by making equivalent or differential payments in cash 
under regulations established by the Secretary. 
(3) WORKING CONDITIONS.—The contract and bid specification shall 
contain a provision specifying that no part of the services covered by 
this chapter may be performed in buildings or surroundings or under 
working conditions, provided by or under the control or supervision of 
the contractor or any subcontractor, which are unsanitary or hazardous 
or dangerous to the health or safety of service employees engaged to 
provide the services. 
(4) NOTICE.—The contract and bid specification shall contain a pro-
vision specifying that on the date a service employee begins work on 
a contract to which this chapter applies, the contractor or subcon-
tractor will deliver to the employee a notice of the compensation re-
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152 
quired under paragraphs (1) and (2), on a form prepared by the Fed-
eral agency, or will post a notice of the required compensation in a 
prominent place at the worksite. 
(5) GENERAL SCHEDULE PAY RATES AND PREVAILING RATE SYS-
TEMS.—The contract and bid specification shall contain a statement of 
the rates that would be paid by the Federal agency to each class of 
service employee if section 5332 or 5341 of title 5 were applicable to 
them. The Secretary shall give due consideration to these rates in mak-
ing the wage and fringe benefit determinations specified in this section. 
§ 6704. Limitation on minimum wage 
(a) IN GENERAL.—A contractor that makes a contract with the Federal 
Government, the principal purpose of which is to furnish services through 
the use of service employees, and any subcontractor, may not pay less than 
the minimum wage specified under section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206(a)(1)) to an employee engaged in per-
forming work on the contract. 
(b) VIOLATIONS.—Sections 6705 to 6707(d) of this title are applicable to 
a violation of this section. 
§ 6705. Violations 
(a) LIABILITY OF RESPONSIBLE PARTY.—A party responsible for a viola-
tion of a contract provision required under section 6703(1) or (2) of this 
title or a violation of section 6704 of this title is liable for an amount equal 
to the sum of any deduction, rebate, refund, or underpayment of compensa-
tion due any employee engaged in the performance of the contract. 
(b) RECOVERY OF AMOUNTS UNDERPAID TO EMPLOYEES.— 
(1) WITHHOLDING ACCRUED PAYMENTS DUE ON CONTRACTS.—The 
total amount determined under subsection (a) to be due any employee 
engaged in the performance of a contract may be withheld from ac-
crued payments due on the contract or on any other contract between 
the same contractor and the Federal Government. The amount with-
held shall be held in a deposit fund. On order of the Secretary, the 
compensation found by the Secretary or the head of a Federal agency 
to be due an underpaid employee pursuant to this chapter shall be paid 
from the deposit fund directly to the underpaid employee. 
(2) BRINGING ACTIONS AGAINST CONTRACTORS.—If the accrued pay-
ments withheld under the terms of the contract are insufficient to reim-
burse a service employee with respect to whom there has been a failure 
to pay the compensation required pursuant to this chapter, the Federal 
Government may bring action against the contractor, subcontractor, or 
any sureties in any court of competent jurisdiction to recover the re-
maining amount of underpayment. Any amount recovered shall be held 
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153 
in the deposit fund and shall be paid, on order of the Secretary, di-
rectly to the underpaid employee. Any amount not paid to an employee 
because of inability to do so within 3 years shall be covered into the 
Treasury as miscellaneous receipts. 
(c) CANCELLATION
AND ALTERNATIVE COMPLETION.—In addition to 
other actions in accordance with this section, when a violation of any con-
tract stipulation is found, the Federal agency that made the contract may 
cancel the contract on written notice to the original contractor. The Federal 
Government may then make other contracts or arrangements for the com-
pletion of the original contract, charging any additional cost to the original 
contractor. 
(d) ENFORCEMENT OF SECTION.—In accordance with regulations pre-
scribed pursuant to section 6707(a)–(d) of this title, the Secretary or the 
head of a Federal agency may carry out this section. 
§ 6706. Three-year prohibition on new contracts in case of 
violation 
(a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to 
each agency of the Federal Government a list containing the names of per-
sons or firms that a Federal agency or the Secretary has found to have vio-
lated this chapter. 
(b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends oth-
erwise because of unusual circumstances, a Federal Government contract 
may not be awarded to a person or firm named on the list under subsection 
(a), or to an entity in which the person or firm has a substantial interest, 
until 3 years have elapsed from the date of publication of the list. If the 
Secretary does not recommend otherwise because of unusual circumstances, 
the Secretary shall, not later than 90 days after a hearing examiner has 
made a finding of a violation of this chapter, forward to the Comptroller 
General the name of the person or firm found to have violated this chapter. 
§ 6707. Enforcement and administration of chapter 
(a) ENFORCEMENT OF CHAPTER.—Sections 6506 and 6507 of this title 
govern the Secretary’s authority to enforce this chapter, including the Sec-
retary’s authority to prescribe regulations, issue orders, hold hearings, make 
decisions based on findings of fact, and take other appropriate action under 
this chapter. 
(b) LIMITATIONS
AND REGULATIONS
FOR VARIATIONS, TOLERANCES, 
AND EXEMPTIONS.—The Secretary may provide reasonable limitations and 
may prescribe regulations allowing reasonable variation, tolerances, and ex-
emptions with respect to this chapter (other than subsection (f)), but only 
in special circumstances where the Secretary determines that the limitation, 
variation, tolerance, or exemption is necessary and proper in the public in-
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154 
terest or to avoid the serious impairment of Federal Government business, 
and is in accord with the remedial purpose of this chapter to protect pre-
vailing labor standards. 
(c) PRESERVATION
OF WAGES
AND BENEFITS DUE UNDER PREDE-
CESSOR CONTRACTS.— 
(1) IN GENERAL.—Under a contract which succeeds a contract sub-
ject to this chapter, and under which substantially the same services 
are furnished, a contractor or subcontractor may not pay a service em-
ployee less than the wages and fringe benefits the service employee 
would have received under the predecessor contract, including accrued 
wages and fringe benefits and any prospective increases in wages and 
fringe benefits provided for in a collective-bargaining agreement as a 
result of arm’s-length negotiations. 
(2) EXCEPTION.—This subsection does not apply if the Secretary 
finds after a hearing in accordance with regulations adopted by the 
Secretary that wages and fringe benefits under the predecessor con-
tract are substantially at variance with wages and fringe benefits pre-
vailing in the same locality for services of a similar character. 
(d) DURATION OF CONTRACTS.—Subject to limitations in annual appro-
priation acts but notwithstanding any other law, a contract to which this 
chapter applies may, if authorized by the Secretary, be for any term of 
years not exceeding 5, if the contract provides for periodic adjustment of 
wages and fringe benefits pursuant to future determinations, issued in the 
manner prescribed in section 6703 of this title at least once every 2 years 
during the term of the contract, covering each class of service employee. 
(e) EXCLUSION OF FRINGE BENEFIT PAYMENTS IN DETERMINING OVER-
TIME PAY.—In determining any overtime pay to which a service employee 
is entitled under Federal law, the regular or basic hourly rate of pay of the 
service employee does not include any fringe benefit payments computed 
under this chapter which are excluded from the definition of ‘‘regular rate’’ 
under section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
207(e)). 
(f) TIMELINESS OF WAGE AND FRINGE BENEFIT DETERMINATIONS.—It 
is the intent of Congress that determinations of minimum wages and fringe 
benefits under section 6703(1) and (2) of this title should be made as soon 
as administratively feasible for all contracts subject to this chapter. In any 
event, the Secretary shall at least make the determinations for contracts 
under which more than 5 service employees are to be employed. 
CHAPTER 69—CONTRACT DISPUTES 
Sec. 
6901.
Definitions. 
6902.
Applicability of chapter. 
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155 
6903.
Decision by contracting officer. 
6904.
Contractor’s right of appeal from decision by contracting officer. 
6905.
Agency boards. 
6906.
Agency board procedures for accelerated and small claims. 
6907.
Judicial review of agency board decisions. 
6908.
Payment of claims. 
6909.
Interest. 
§ 6901. Definitions 
In this chapter: 
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Admin-
istrator for Federal Procurement Policy appointed pursuant to section 
1102 of this title. 
(2) AGENCY BOARD OR AGENCY BOARD OF CONTRACT APPEALS.— 
The term ‘‘agency board’’ or ‘‘agency board of contract appeals’’ 
means— 
(A) the Armed Services Board; 
(B) the Civilian Board; 
(C) the board of contract appeals of the Tennessee Valley Au-
thority; or 
(D) the Postal Service Contract Board of Appeals established 
under section 6905(d)(1) of this title. 
(3) AGENCY HEAD.—The term ‘‘agency head’’ means the head and 
any assistant head of an executive agency. The term may include the 
chief official of a principal division of an executive agency if the head 
of the executive agency so designates that chief official. 
(4) ARMED SERVICES BOARD.—The term ‘‘Armed Services Board’’ 
means the Armed Services Board of Contract Appeals established 
under section 6905(a)(1) of this title. 
(5) CIVILIAN BOARD.—The term ‘‘Civilian Board’’ means the Civil-
ian Board of Contract Appeals established under section 6905(b)(1) of 
this title. 
(6) CONTRACTING OFFICER.—The term ‘‘contracting officer’’— 
(A) means an individual who, by appointment in accordance 
with applicable regulations, has the authority to make and admin-
ister contracts and to make determinations and findings with re-
spect to contracts; and 
(B) includes an authorized representative of the contracting of-
ficer, acting within the limits of the representative’s authority. 
(7) CONTRACTOR.—The term ‘‘contractor’’ means a party to a Fed-
eral Government contract other than the Federal Government. 
(8) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ means— 
(A) an executive department as defined in section 101 of title 
5; 
(B) a military department as defined in section 102 of title 5; 
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156 
(C) an independent establishment as defined in section 104 of 
title 5, except that the term does not include the Government Ac-
countability Office; and 
(D) a wholly owned Government corporation as defined in sec-
tion 9101(3) of title 31. 
(9) MISREPRESENTATION OF FACT.—The term ‘‘misrepresentation 
of fact’’ means a false statement of substantive fact, or conduct that 
leads to a belief of a substantive fact material to proper understanding 
of the matter in hand, made with intent to deceive or mislead. 
§ 6902. Applicability of chapter 
(a) EXECUTIVE AGENCY CONTRACTS.—Unless otherwise specifically pro-
vided in this chapter, this chapter applies to any express or implied contract 
(including those of the nonappropriated fund activities described in sections 
1346 and 1491 of title 28) made by an executive agency for— 
(1) the procurement of property, other than real property in being; 
(2) the procurement of services; 
(3) the procurement of construction, alteration, repair, or mainte-
nance of real property; or 
(4) the disposal of personal property. 
(b) TENNESSEE VALLEY AUTHORITY CONTRACTS.— 
(1) IN GENERAL.—With respect to contracts of the Tennessee Valley 
Authority, this chapter applies only to contracts containing a clause 
that requires contract disputes to be resolved through an agency ad-
ministrative process. 
(2) EXCLUSION.—Notwithstanding any other provision of this chap-
ter, this chapter does not apply to a contract of the Tennessee Valley 
Authority for the sale of fertilizer or electric power or related to the 
conduct or operation of the electric power system. 
(c) FOREIGN GOVERNMENT
OR INTERNATIONAL ORGANIZATION CON-
TRACTS.—If an agency head determines that applying this chapter would 
not be in the public interest, this chapter does not apply to a contract with 
a foreign government, an agency of a foreign government, an international 
organization, or a subsidiary body of an international organization. 
(d) MARITIME CONTRACTS.—Appeals under section 6907(a) of this title 
and actions brought under sections 6904(b) and 6907(b) to (f) of this title, 
arising out of maritime contracts, are governed by chapter 309 or 311 of 
title 46, as applicable, to the extent that those chapters are not inconsistent 
with this chapter. 
§ 6903. Decision by contracting officer 
(a) CLAIMS GENERALLY.— 
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157 
(1) SUBMISSION OF CONTRACTOR’S CLAIMS TO CONTRACTING OFFI-
CER.—Each claim by a contractor against the Federal Government re-
lating to a contract shall be submitted to the contracting officer for a 
decision. 
(2) CONTRACTOR’S CLAIMS IN WRITING.—Each claim by a contractor 
against the Federal Government relating to a contract shall be in writ-
ing. 
(3) CONTRACTING OFFICER TO DECIDE FEDERAL GOVERNMENT’S 
CLAIMS.—Each claim by the Federal Government against a contractor 
relating to a contract shall be the subject of a decision by the con-
tracting officer. 
(4) TIME FOR SUBMITTING CLAIMS.— 
(A) IN GENERAL.—Each claim by a contractor against the Fed-
eral Government relating to a contract and each claim by the Fed-
eral Government against a contractor relating to a contract shall 
be submitted within 6 years after the accrual of the claim. 
(B) EXCEPTION.—This paragraph does not apply to a claim by 
the Federal Government against a contractor that is based on a 
claim by the contractor involving fraud. 
(5) APPLICABILITY.—The authority of this subsection and sub-
sections (c)(1), (d), and (e) does not extend to a claim or dispute for 
penalties or forfeitures prescribed by statute or regulation that another 
Federal agency is specifically authorized to administer, settle, or deter-
mine. 
(b) CERTIFICATION OF CLAIMS.— 
(1) REQUIREMENT GENERALLY.—For claims of more than $100,000 
made by a contractor, the contractor shall certify that— 
(A) the claim is made in good faith; 
(B) the supporting data are accurate and complete to the best 
of the contractor’s knowledge and belief; 
(C) the amount requested accurately reflects the contract ad-
justment for which the contractor believes the Federal Government 
is liable; and 
(D) the certifier is authorized to certify the claim on behalf of 
the contractor. 
(2) WHO MAY EXECUTE CERTIFICATION.—The certification required 
by paragraph (1) may be executed by an individual authorized to bind 
the contractor with respect to the claim. 
(3) FAILURE TO CERTIFY OR DEFECTIVE CERTIFICATION.—A con-
tracting officer is not obligated to render a final decision on a claim 
of more than $100,000 that is not certified in accordance with para-
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158 
graph (1) if, within 60 days after receipt of the claim, the contracting 
officer notifies the contractor in writing of the reasons why any at-
tempted certification was found to be defective. A defect in the certifi-
cation of a claim does not deprive a court or an agency board of juris-
diction over the claim. Prior to the entry of a final judgment by a court 
or a decision by an agency board, the court or agency board shall re-
quire a defective certification to be corrected. 
(c) FRAUDULENT CLAIMS.— 
(1) NO AUTHORITY TO SETTLE.—This section does not authorize an 
agency head to settle, compromise, pay, or otherwise adjust any claim 
involving fraud. 
(2) LIABILITY OF CONTRACTOR.—If a contractor is unable to sup-
port any part of the contractor’s claim and it is determined that the 
inability is attributable to a misrepresentation of fact or fraud by the 
contractor, then the contractor is liable to the Federal Government for 
an amount equal to the unsupported part of the claim plus all of the 
Federal Government’s costs attributable to reviewing the unsupported 
part of the claim. Liability under this paragraph shall be determined 
within 6 years of the commission of the misrepresentation of fact or 
fraud. 
(d) ISSUANCE OF DECISION.—The contracting officer shall issue a deci-
sion in writing and shall mail or otherwise furnish a copy of the decision 
to the contractor. 
(e) CONTENTS OF DECISION.—The contracting officer’s decision shall 
state the reasons for the decision reached and shall inform the contractor 
of the contractor’s rights as provided in this chapter. Specific findings of 
fact are not required. If made, specific findings of fact are not binding in 
any subsequent proceeding. 
(f) TIME FOR ISSUANCE OF DECISION.— 
(1) CLAIM OF $100,000 OR LESS.—A contracting officer shall issue a 
decision on any submitted claim of $100,000 or less within 60 days 
from the contracting officer’s receipt of a written request from the con-
tractor that a decision be rendered within that period. 
(2) CLAIM OF MORE THAN $100,000.—A contracting officer shall, 
within 60 days of receipt of a submitted certified claim over 
$100,000— 
(A) issue a decision; or 
(B) notify the contractor of the time within which a decision will 
be issued. 
(3) GENERAL REQUIREMENT OF REASONABLENESS.—The decision of 
a contracting officer on submitted claims shall be issued within a rea-
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159 
sonable time, in accordance with regulations prescribed by the agency, 
taking into account such factors as the size and complexity of the claim 
and the adequacy of information in support of the claim provided by 
the contractor. 
(4) REQUESTING TRIBUNAL TO DIRECT ISSUANCE WITHIN SPECIFIED 
TIME PERIOD.—A contractor may request the tribunal concerned to di-
rect a contracting officer to issue a decision in a specified period of 
time, as determined by the tribunal concerned, in the event of undue 
delay on the part of the contracting officer. 
(5) FAILURE TO ISSUE DECISION WITHIN REQUIRED TIME PERIOD.— 
Failure by a contracting officer to issue a decision on a claim within 
the required time period is deemed to be a decision by the contracting 
officer denying the claim and authorizes an appeal or action on the 
claim as otherwise provided in this chapter. However, the tribunal con-
cerned may, at its option, stay the proceedings of the appeal or action 
to obtain a decision by the contracting officer. 
(g) FINALITY OF DECISION UNLESS APPEALED.—The contracting offi-
cer’s decision on a claim is final and conclusive and is not subject to review 
by any forum, tribunal, or Federal Government agency, unless an appeal or 
action is timely commenced as authorized by this chapter. This chapter does 
not prohibit an executive agency from including a clause in a Federal Gov-
ernment contract requiring that, pending final decision of an appeal, action, 
or final settlement, a contractor shall proceed diligently with performance 
of the contract in accordance with the contracting officer’s decision. 
(h) ALTERNATIVE MEANS OF DISPUTE RESOLUTION.— 
(1) IN GENERAL.—Notwithstanding any other provision of this chap-
ter, a contractor and a contracting officer may use any alternative 
means of dispute resolution under subchapter IV of chapter 5 of title 
5, or other mutually agreeable procedures, for resolving claims. All pro-
visions of subchapter IV of chapter 5 of title 5 apply to alternative 
means of dispute resolution under this subsection. 
(2) CERTIFICATION
OF
CLAIM.—The contractor shall certify the 
claim when required to do so under subsection (b)(1) or other law. 
(3) REJECTING
REQUEST
FOR
ALTERNATIVE
DISPUTE
RESOLU-
TION.— 
(A) CONTRACTING OFFICER.—A contracting officer who rejects 
a contractor’s request for alternative dispute resolution pro-
ceedings shall provide the contractor with a written explanation, 
citing one or more of the conditions in section 572(b) of title 5 
or other specific reasons that alternative dispute resolution proce-
dures are inappropriate. 
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