149 
(c) NONAPPLICATION.—Subsection (b) does not apply to a proposal that 
is set forth or incorporated by reference in a contract entered into between 
the agency and the contractor that submitted the proposal. 
§ 4703. Validation of proprietary data restrictions 
(a) CONTRACT THAT PROVIDES FOR DELIVERY OF TECHNICAL DATA.— 
A contract for property or services entered into by an executive agency that 
provides for the delivery of technical data shall provide that— 
(1) a contractor or subcontractor at any tier shall be prepared to 
furnish to the contracting officer a written justification for any restric-
tion the contractor or subcontractor asserts on the right of the Federal 
Government to use the data; and 
(2) the contracting officer may review the validity of a restriction the 
contractor or subcontractor asserts under the contract on the right of 
the Federal Government to use technical data furnished to the Federal 
Government under the contract if the contracting officer determines 
that reasonable grounds exist to question the current validity of the as-
serted restriction and that the continued adherence to the asserted re-
striction by the Federal Government would make it impracticable to 
procure the item competitively at a later time. 
(b) CHALLENGE OF RESTRICTION.—If after a review the contracting offi-
cer determines that a challenge to the asserted restriction is warranted, the 
contracting officer shall provide written notice to the contractor or subcon-
tractor asserting the restriction. The notice shall state— 
(1) the grounds for challenging the asserted restriction; and 
(2) the requirement for a response within 60 days justifying the cur-
rent validity of the asserted restriction. 
(c) ADDITIONAL TIME FOR RESPONSES.—If a contractor or subcontractor 
asserting a restriction subject to this section submits to the contracting offi-
cer a written request showing the need for additional time to comply with 
the requirement to justify the current validity of the asserted restriction, the 
contracting officer shall provide appropriate additional time to adequately 
permit the justification to be submitted. 
(d) MULTIPLE CHALLENGES.—If a party asserting a restriction receives 
notices of challenges to restrictions on technical data from more than one 
contracting officer, and notifies each contracting officer of the existence of 
more than one challenge, the contracting officer initiating the earliest chal-
lenge, after consultation with the party asserting the restriction and the 
other contracting officers, shall formulate a schedule of responses to each 
of the challenges that will afford the party asserting the restriction with an 
equitable opportunity to respond to each challenge. 
(e) DECISION ON VALIDITY OF ASSERTED RESTRICTION.— 
VerDate Nov 24 2008 
09:09 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00149
Fmt 6652
Sfmt 6221
E:\BILLS\H1107.IH
H1107
cprice-sewell on PROD1PC72 with BILLS
150 
(1) NO RESPONSE SUBMITTED.—The contracting officer shall issue 
a decision pertaining to the validity of the asserted restriction if the 
contractor or subcontractor does not submit a response under sub-
section (b). 
(2) RESPONSE SUBMITTED.—Within 60 days of receipt of a justifica-
tion submitted in response to the notice provided pursuant to sub-
section (b), a contracting officer shall issue a decision or notify the 
party asserting the restriction of the time within which a decision will 
be issued. 
(f) CLAIM DEEMED CLAIM WITHIN CHAPTER 71.—A claim pertaining to 
the validity of the asserted restriction that is submitted in writing to a con-
tracting officer by a contractor or subcontractor at any tier is deemed to 
be a claim within the meaning of chapter 71 of this title. 
(g) FINAL DISPOSITION OF CHALLENGE.— 
(1) CHALLENGE IS SUSTAINED.—If the contracting officer’s chal-
lenge to the restriction on the right of the Federal Government to use 
technical data is sustained on final disposition— 
(A) the restriction is cancelled; and 
(B) if the asserted restriction is found not to be substantially 
justified, the contractor or subcontractor, as appropriate, is liable 
to the Federal Government for payment of the cost to the Federal 
Government of reviewing the asserted restriction and the fees and 
other expenses (as defined in section 2412(d)(2)(A) of title 28) in-
curred by the Federal Government in challenging the asserted re-
striction, unless special circumstances would make the payment 
unjust. 
(2) CHALLENGE NOT SUSTAINED.—If the contracting officer’s chal-
lenge to the restriction on the right of the Federal Government to use 
technical data is not sustained on final disposition, the Federal Govern-
ment— 
(A) continues to be bound by the restriction; and 
(B) is liable for payment to the party asserting the restriction 
for fees and other expenses (as defined in section 2412(d)(2)(A) 
of title 28) incurred by the party asserting the restriction in de-
fending the asserted restriction if the challenge by the Federal 
Government is found not to be made in good faith. 
§ 4704. Prohibition of contractors limiting subcontractor 
sales directly to Federal Government 
(a) CONTRACT RESTRICTIONS.—Each contract for the purchase of prop-
erty or services made by an executive agency shall provide that the con-
tractor will not— 
VerDate Nov 24 2008 
09:09 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00150
Fmt 6652
Sfmt 6221
E:\BILLS\H1107.IH
H1107
cprice-sewell on PROD1PC72 with BILLS
151 
(1) enter into an agreement with a subcontractor under the contract 
that has the effect of unreasonably restricting sales by the subcon-
tractor directly to the Federal Government of any item or process (in-
cluding computer software) made or furnished by the subcontractor 
under the contract (or any follow-on production contract); or 
(2) otherwise act to restrict unreasonably the ability of a subcon-
tractor to make sales described in paragraph (1) to the Federal Gov-
ernment. 
(b) RIGHTS UNDER LAW PRESERVED.—This section does not prohibit a 
contractor from asserting rights it otherwise has under law. 
(c) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does not 
apply to a contract for an amount that is not greater than the simplified 
acquisition threshold. 
(d) INAPPLICABILITY WHEN GOVERNMENT TREATED SIMILARLY
TO 
OTHER PURCHASERS.—An agreement between the contractor in a contract 
for the acquisition of commercial items and a subcontractor under the con-
tract that restricts sales by the subcontractor directly to persons other than 
the contractor may not be considered to unreasonably restrict sales by that 
subcontractor to the Federal Government in violation of the provision in-
cluded in the contract pursuant to subsection (a) if the agreement does not 
result in the Federal Government being treated differently with regard to 
the restriction than any other prospective purchaser of the commercial items 
from that subcontractor. 
§ 4705. Protection of contractor employees from reprisal for 
disclosure of certain information 
(a) DEFINITIONS.—In this section: 
(1) CONTRACT.—The term ‘‘contract’’ means a contract awarded by 
the head of an executive agency. 
(2) CONTRACTOR.—The term ‘‘contractor’’ means a person awarded 
a contract with an executive agency. 
(3) INSPECTOR GENERAL.—The term ‘‘Inspector General’’ means an 
Inspector General appointed under the Inspector General Act of 1978 
(5 U.S.C. App.). 
(b) PROHIBITION OF REPRISALS.—An employee of a contractor may not 
be discharged, demoted, or otherwise discriminated against as a reprisal for 
disclosing to a Member of Congress or an authorized official of an executive 
agency or the Department of Justice information relating to a substantial 
violation of law related to a contract (including the competition for, or nego-
tiation of, a contract). 
(c) INVESTIGATION OF COMPLAINTS.—An individual who believes that the 
individual has been subjected to a reprisal prohibited by subsection (b) may 
VerDate Nov 24 2008 
09:09 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00151
Fmt 6652
Sfmt 6221
E:\BILLS\H1107.IH
H1107
cprice-sewell on PROD1PC72 with BILLS
152 
submit a complaint to the Inspector General of the executive agency. Unless 
the Inspector General determines that the complaint is frivolous, the Inspec-
tor General shall investigate the complaint and, on completion of the inves-
tigation, submit a report of the findings of the investigation to the indi-
vidual, the contractor concerned, and the head of the agency. If the execu-
tive agency does not have an Inspector General, the duties of the Inspector 
General under this section shall be performed by an official designated by 
the head of the executive agency. 
(d) REMEDY AND ENFORCEMENT AUTHORITY.— 
(1) ACTIONS CONTRACTOR MAY BE ORDERED TO TAKE.—If the head 
of an executive agency determines that a contractor has subjected an 
individual to a reprisal prohibited by subsection (b), the head of the 
executive agency may take one or more of the following actions: 
(A) ABATEMENT.—Order the contractor to take affirmative ac-
tion to abate the reprisal. 
(B) REINSTATEMENT.—Order the contractor to reinstate the in-
dividual to the position that the individual held before the reprisal, 
together with the compensation (including back pay), employment 
benefits, and other terms and conditions of employment that 
would apply to the individual in that position if the reprisal had 
not been taken. 
(C) PAYMENT.—Order the contractor to pay the complainant an 
amount equal to the aggregate amount of all costs and expenses 
(including attorneys’ fees and expert witnesses’ fees) that the com-
plainant reasonably incurred for, or in connection with, bringing 
the complaint regarding the reprisal, as determined by the head 
of the executive agency. 
(2) ENFORCEMENT ORDER.—When a contractor fails to comply with 
an order issued under paragraph (1), the head of the executive agency 
shall file an action for enforcement of the order in the United States 
district court for a district in which the reprisal was found to have oc-
curred. In an action brought under this paragraph, the court may 
grant appropriate relief, including injunctive relief and compensatory 
and exemplary damages. 
(3) REVIEW OF ENFORCEMENT ORDER.—A person adversely affected 
or aggrieved by an order issued under paragraph (1) may obtain review 
of the order’s conformance with this subsection, and regulations issued 
to carry out this section, in the United States court of appeals for a 
circuit in which the reprisal is alleged in the order to have occurred. 
A petition seeking review must be filed no more than 60 days after the 
VerDate Nov 24 2008 
09:09 Feb 24, 2009
Jkt 079200
PO 00000
Frm 00152
Fmt 6652
Sfmt 6221
E:\BILLS\H1107.IH
H1107
cprice-sewell on PROD1PC72 with BILLS