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§ 4707. Remission of liquidated damages 
When a contract made on behalf of the Federal Government by the head 
of a Federal agency, or by an authorized officer of the agency, includes a 
provision for liquidated damages for delay, the Secretary of the Treasury 
on recommendation of the head of the agency may remit any part of the 
damages as the Secretary of the Treasury believes is just and equitable. 
§ 4708. Payment of reimbursable indirect costs in cost-type 
research and development contracts with edu-
cational institutions 
A cost-type research and development contract (including a grant) with 
a university, college, or other educational institution may provide for pay-
ment of reimbursable indirect costs on the basis of predetermined fixed-per-
centage rates applied to the total of the reimbursable direct costs incurred 
or to an element of the total of the reimbursable direct costs incurred. 
§ 4709. Implementation of electronic commerce capability 
(a) ROLE OF HEAD OF EXECUTIVE AGENCY.—The head of each execu-
tive agency shall implement the electronic commerce capability required by 
section 2301 of this title. In implementing the capability, the head of an 
executive agency shall consult with the Administrator. 
(b) PROGRAM MANAGER.—The head of each executive agency shall des-
ignate a program manager to implement the electronic commerce capability 
for the agency. The program manager reports directly to an official at a 
level not lower than the senior procurement executive designated for the 
agency under section 1702(c) of this title. 
§ 4710. Limitations on tiering of subcontractors 
(a) DEFINITION.—In this section, the term ‘‘executive agency’’ has the 
same meaning given in section 133 of this title. 
(b) REGULATIONS.—For executive agencies other than the Department of 
Defense, the Federal Acquisition Regulation shall— 
(1) require contractors to minimize the excessive use of subcontrac-
tors, or of tiers of subcontractors, that add no or negligible value; and 
(2) ensure that neither a contractor nor a subcontractor receives in-
direct costs or profit on work performed by a lower-tier subcontractor 
to which the higher-tier contractor or subcontractor adds no or neg-
ligible value (but not to limit charges for indirect costs and profit based 
on the direct costs of managing lower-tier subcontracts). 
(c) COVERED CONTRACTS.—This section applies to any cost-reimburse-
ment type contract or task or delivery order in an amount greater than the 
simplified acquisition threshold (as defined by section 134 of this title). 
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(d) RULE OF CONSTRUCTION.—Nothing in this section shall be construed 
as limiting the ability of the Department of Defense to implement more re-
strictive limitations on the tiering of subcontractors. 
(e) APPLICABILITY.—The Department of Defense shall continue to be 
subject to guidance on limitations on tiering of subcontractors issued by the 
Department of Defense pursuant to section 852 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 (Public Law 109– 
364, 10 U.S.C. 2324 note). 
§ 4711. Linking of award and incentive fees to acquisition 
outcomes 
(a) DEFINITION.—In this section, the term ‘‘executive agency’’ has the 
same meaning given in section 133 of this title. 
(b) GUIDANCE FOR EXECUTIVE AGENCIES ON LINKING OF AWARD AND 
INCENTIVE FEES TO ACQUISITION OUTCOMES.—The Federal Acquisition 
Regulation shall provide executive agencies other than the Department of 
Defense with instructions, including definitions, on the appropriate use of 
award and incentive fees in Federal acquisition programs. 
(c) ELEMENTS.—The regulations under subsection (b) shall— 
(1) ensure that all new contracts using award fees link the fees to 
acquisition outcomes (which shall be defined in terms of program cost, 
schedule, and performance); 
(2) establish standards for identifying the appropriate level of offi-
cials authorized to approve the use of award and incentive fees in new 
contracts; 
(3) provide guidance on the circumstances in which contractor per-
formance may be judged to be ‘‘excellent’’ or ‘‘superior’’ and the per-
centage of the available award fee which contractors should be paid for 
the performance; 
(4) establish standards for determining the percentage of the avail-
able award fee, if any, which contractors should be paid for perform-
ance that is judged to be ‘‘acceptable’’, ‘‘average’’, ‘‘expected’’, ‘‘good’’, 
or ‘‘satisfactory’’; 
(5) ensure that no award fee may be paid for contractor performance 
that is judged to be below satisfactory performance or performance 
that does not meet the basic requirements of the contract; 
(6) provide specific direction on the circumstances, if any, in which 
it may be appropriate to roll over award fees that are not earned in 
one award fee period to a subsequent award fee period or periods; 
(7) ensure consistent use of guidelines and definitions relating to 
award and incentive fees across the Federal Government; 
(8) ensure that each executive agency— 
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(A) collects relevant data on award and incentive fees paid to 
contractors; and 
(B) has mechanisms in place to evaluate the data on a regular 
basis; 
(9) include performance measures to evaluate the effectiveness of 
award and incentive fees as a tool for improving contractor perform-
ance and achieving desired program outcomes; and 
(10) provide mechanisms for sharing proven incentive strategies for 
the acquisition of different types of products and services among con-
tracting and program management officials. 
(d) GUIDANCE FOR DEPARTMENT OF DEFENSE.—The Department of 
Defense shall continue to be subject to guidance on award and incentive fees 
issued by the Secretary of Defense pursuant to section 814 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364, 10 U.S.C. 2302 note). 
Subtitle II—Other Advertising and Contract 
Provisions 
Chapter 
Sec. 
61. Advertising ..................................................................................................
6101 
63. General Contract Provisions ................................................................
6301 
65. Contracts for Materials, Supplies, Articles, and Equipment 
Exceeding $10,000.
6501 
67. Service Contract Labor Standards ....................................................
6701 
CHAPTER 61—ADVERTISING 
Sec. 
6101.
Advertising requirement for Federal Government purchases and sales. 
6102.
Exceptions from advertising requirement. 
6103.
Opening of bids. 
§ 6101. Advertising requirement for Federal Government 
purchases and sales 
(a) DEFINITIONS.—In this section— 
(1) APPROPRIATION.—The term ‘‘appropriation’’ includes amounts 
made available by legislation under section 9104 of title 31. 
(2) FEDERAL GOVERNMENT.—The term ‘‘Federal Government’’ in-
cludes the government of the District of Columbia. 
(b) PURCHASES.— 
(1) IN GENERAL.—Unless otherwise provided in the appropriation 
concerned or other law, purchases and contracts for supplies or services 
for the Federal Government may be made or entered into only after 
advertising for proposals for a sufficient time. 
(2) LIMITATIONS ON APPLICABILITY.—Paragraph (1) does not apply 
when— 
(A) the amount involved in any one case does not exceed 
$25,000; 
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