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41 U.S.C. § 6702 (PUBLIC CONTRACTS)
§ 6702. Contracts to which this chapter applies
(a) In General.—
Except as provided in subsection (b), this chapter applies to any contract or bid specification for a contract, whether negotiated or advertised, that—
(1) is made by the Federal Government or the District of Columbia;
(2) involves an amount exceeding $2,500; and
(3) has as its principal purpose the furnishing of services in the United States through the use of service employees.
(b) Exemptions.—
This chapter does not apply to—
(1) a contract of the Federal Government or the District of Columbia for the construction, alteration, or repair, including painting and decorating, of public buildings or public works;
(2) any work required to be done in accordance with chapter 65 of this title;
(3) a contract for the carriage of freight or personnel by vessel, airplane, bus, truck, express, railway line or oil or gas pipeline where published tariff rates are in effect;
(4) a contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934 (47 U.S.C. 151 et seq.);
(5) a contract for public utility services, including electric light and power, water, steam, and gas;
(6) an employment contract providing for direct services to a Federal agency by an individual; and
(7) a contract with the United States Postal Service, the principal purpose of which is the operation of postal contract stations.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3812.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
6702(a)
41:351(a) (words before par. (1) related to applicability).
Pub. L. 89–286, § 2(a) (words before par. (1) related to applicability), Oct. 22, 1965, 79 Stat. 1034; Pub. L. 94–489, § 1(a), Oct. 13, 1976, 90 Stat. 2358.
6702(b)
41:356.
Pub. L. 89–286, § 7, Oct. 22, 1965, 79 Stat. 1035.
In subsection (b)(2), the words “the Walsh-Healey Public Contracts Act (49 Stat. 2036)”, which appear in section 7(2) of Public Law 89–286 (79 Stat. 1036), are treated as a reference to the Act of June 30, 1936 (ch. 881, 49 Stat. 2036), which was known as the Walsh-Healey Act and which was subsequently designated as the Walsh-Healey Act by section 12 of the Act of June 30, 1936, which was added by section 10005(f)(5) of Public Law 103–355 (108 Stat. 3409).
In subsection (b)(7), the words “United States Postal Service” are substituted for “Post Office Department” because of sections 4(a) and 6(o) of the Postal Reorganization Act (Public Law 91–375, 84 Stat. 773, 783, 39 U.S.C. note prec. 101, 201 note).
heading: References in Text
text: The Communications Act of 1934, referred to in subsec. (b)(4), is act June 19, 1934, ch. 652, 48 Stat. 1064, which is classified principally to chapter 5 (§ 151 et seq.) of Title 47, Telecommunications. For complete classification of this Act to the Code, see section 609 of Title 47 and Tables.
41 U.S.C. § 6704 (PUBLIC CONTRACTS)
§ 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 Standards Act of 1938 (29 U.S.C. 206(a)(1)) to an employee engaged in performing work on the contract.
(b) Violations.—
Sections 6705 to 6707(d) of this title are applicable to a violation of this section.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3813.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
6704
41:351(b).
Pub. L. 89–286, § 2(b), Oct. 22, 1965, 79 Stat. 1034; Pub. L. 94–489, § 1(b), Oct. 13, 1976, 90 Stat. 2358.
41 U.S.C. § 6705 (PUBLIC CONTRACTS)
§ 6705. Violations
(a) Liability of Responsible Party.—
A party responsible for a violation 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 compensation 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 accrued payments due on the contract or on any other contract between the same contractor and the Federal Government. The amount withheld 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 payments withheld under the terms of the contract are insufficient to reimburse 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 remaining amount of underpayment. Any amount recovered shall be held in the deposit fund and shall be paid, on order of the Secretary, directly 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 contract 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 completion of the original contract, charging any additional cost to the original contractor.
(d) Enforcement of Section.—
In accordance with regulations prescribed pursuant to section 6707(a)–(d) of this title, the Secretary or the head of a Federal agency may carry out this section.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3814.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
6705(a)
41:352(a) (1st sentence).
Pub. L. 89–286, §§ 3, 5(b), Oct. 22, 1965, 79 Stat. 1035.
6705(b)(1)
41:352(a) (2d–last sentences).
6705(b)(2)
41:354(b)
6705(c)
41:352(c).
6705(d)
41:352(b).
In subsection (c), the words “to other actions in accordance with this section” are added for clarity.
41 U.S.C. § 6706 (PUBLIC CONTRACTS)
§ 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 persons or firms that a Federal agency or the Secretary has found to have violated this chapter.
(b) Three-Year Prohibition.—
Unless the Secretary recommends otherwise 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.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3814.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
6706(a)
41:354(a) (1st sentence).
Pub. L. 89–286, § 5(a) (1st sentence), Oct. 22, 1965, 79 Stat. 1035.
6706(b)
41:354(a) (2d–last sentences).
Pub. L. 89–286, § 5(a) (2d–last sentences), Oct. 22, 1965, 79 Stat. 1035; Pub. L. 92–473, § 4, Oct. 9, 1972, 86 Stat. 790.
In subsection (b), the word “entity” is substituted for “firm, corporation, partnership, or association” to use a single broad term clarifying that the prohibition applies to any kind of organization in which the person or firm has a substantial interest. The words “containing the name of such persons or firms” are omitted as unnecessary. The word “person” is substituted for “individual” for consistency in the subsection.
41 U.S.C. § 7101 (PUBLIC CONTRACTS)
§ 7101. Definitions
In this chapter:
(1) Administrator.—
The term “Administrator” means the Administrator 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 Authority; or
(D) the Postal Service Board established under section 7105(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 7105(a)(1) of this title.
(5) Civilian board.—
The term “Civilian Board” means the Civilian Board of Contract Appeals established under section 7105(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 administer contracts and to make determinations and findings with respect to contracts; and
(B) includes an authorized representative of the contracting officer, acting within the limits of the representative’s authority.
(7) Contractor.—
The term “contractor” means a party to a Federal 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;
(C) an independent establishment as defined in section 104 of title 5, except that the term does not include the Government Accountability Office; and
(D) a wholly owned Government corporation as defined in section 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.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3816.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
7101
41:601.
Pub. L. 95–563, § 2, Nov. 1, 1978, 92 Stat. 2383; Pub. L. 104–106, div. D, title XLIII, § 4322(b)(5), Feb. 10, 1996, 110 Stat. 677; Pub. L. 109–163, div. A, title VIII, § 847(d)(1), Jan. 6, 2006, 119 Stat. 3393.
In paragraph (8)(C), the words “Government Accountability Office” are substituted for “General Accounting Office” because of section 8(b) of the GAO Human Capital Reform Act of 2004 (Public Law 108–271, 118 Stat. 814, 31 U.S.C. 702 note).
In paragraph (8)(D), the words “section 9101(3) of title 31” are substituted for “section 846 of title 31” because of section 4(b) of Public Law 97–258 (31 U.S.C. note prec. 101).
41 U.S.C. § 7102 (PUBLIC CONTRACTS)
§ 7102. Applicability of chapter
(a) Executive Agency Contracts.—
Unless otherwise specifically provided 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 maintenance 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 administrative process.
(2) Exclusion.—
Notwithstanding any other provision of this chapter, 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 Contracts.—
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 7107(a) of this title and actions brought under sections 7104(b) and 7107(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.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3817.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
7102(a)–(c)
41:602.
Pub. L. 95–563, §§ 3, 4, Nov. 1, 1978, 92 Stat. 2383.
7102(d)
41:603.
In subsection (c), the words “an agency head” are substituted for “the head of the agency” for consistency with the defined term “agency head” in section 7101 of the revised title.
In subsection (d), the words “chapter 309 or 311 of title 46” are substituted for “the Act of March 9, 1920, as amended (41 Stat. 525, as amended; 46 U.S.C. 741–752) or the Act of March 3, 1925, as amended (43 Stat. 1112, as amended; 46 U.S.C. 781–790)” in section 4 of the Contract Disputes Act of 1978 (Public Law 95–563, 92 Stat. 2384) because of section 18(c) of Public Law 109–304 (46 U.S.C. note prec. 101).
41 U.S.C. § 7104 (PUBLIC CONTRACTS)
§ 7104. Contractor’s right of appeal from decision by contracting officer
(a) Appeal to Agency Board.—
A contractor, within 90 days from the date of receipt of a contracting officer’s decision under section 7103 of this title, may appeal the decision to an agency board as provided in section 7105 of this title.
(b) Bringing an Action De Novo in Federal Court.—
(1) In general.—
Except as provided in paragraph (2), and in lieu of appealing the decision of a contracting officer under section 7103 of this title to an agency board, a contractor may bring an action directly on the claim in the United States Court of Federal Claims, notwithstanding any contract provision, regulation, or rule of law to the contrary.
(2) Tennessee valley authority.—
In the case of an action against the Tennessee Valley Authority, the contractor may only bring an action directly on the claim in a district court of the United States pursuant to section 1337 of title 28, notwithstanding any contract provision, regulation, or rule of law to the contrary.
(3) Time for filing.—
A contractor shall file any action under paragraph (1) or (2) within 12 months from the date of receipt of a contracting officer’s decision under section 7103 of this title.
(4) De novo.—
An action under paragraph (1) or (2) shall proceed de novo in accordance with the rules of the appropriate court.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3820.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
7104(a)
41:606.
Pub. L. 95–563, § 7, Nov. 1, 1978, 92 Stat. 2385.
7104(b)
41:609(a).
Pub. L. 95–563, § 10(a), Nov. 1, 1978, 92 Stat. 2388; Pub. L. 97–164, title I, § 161(10), Apr. 2, 1982, 96 Stat. 49.
In subsection (a), the words “of contract appeals” are omitted as unnecessary because of the definition of “agency board” in section 7101 of the revised title.
In subsection (b)(1), the words “United States Court of Federal Claims” are substituted for “United States Claims Court” because of section 902(b)(1) of the Federal Courts Administration Act of 1992 (Pub. L. 102–572, 106 Stat. 4516, 28 U.S.C. 171 note).
41 U.S.C. § 7108 (PUBLIC CONTRACTS)
§ 7108. Payment of claims
(a) Judgments.—
Any judgment against the Federal Government on a claim under this chapter shall be paid promptly in accordance with the procedures provided by section 1304 of title 31.
(b) Monetary Awards.—
Any monetary award to a contractor by an agency board shall be paid promptly in accordance with the procedures contained in subsection (a).
(c) Reimbursement.—
Payments made pursuant to subsections (a) and (b) shall be reimbursed to the fund provided by section 1304 of title 31 by the agency whose appropriations were used for the contract out of available amounts or by obtaining additional appropriations for purposes of reimbursement.
(d) Tennessee Valley Authority.—
(1) Judgments.—
Notwithstanding subsections (a) to (c), any judgment against the Tennessee Valley Authority on a claim under this chapter shall be paid promptly in accordance with section 9(b) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)).
(2) Monetary awards.—
Notwithstanding subsections (a) to (c), any monetary award to a contractor by the board of contract appeals of the Tennessee Valley Authority shall be paid in accordance with section 9(b) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)).
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3825.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
7108
41:612.
Pub. L. 95–563, § 13, Nov. 1, 1978, 92 Stat. 2389; Pub. L. 104–106, div. D, title XLIII, § 4322(b)(7), Feb. 10, 1996, 110 Stat. 677.
41 U.S.C. § 8101 (PUBLIC CONTRACTS)
§ 8101. Definitions and construction
(a) Definitions.—
In this chapter:
(1) Contractor.—
The term “contractor” means the department, division, or other unit of a person responsible for the performance under the contract.
(2) Controlled substance.—
The term “controlled substance” means a controlled substance in schedules I through V of section 202 of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 812).
(3) Conviction.—
The term “conviction” means a finding of guilt (including a plea of nolo contendere), an imposition of sentence, or both, by a judicial body charged with the responsibility to determine violations of Federal or State criminal drug statutes.
(4) Criminal drug statute.—
The term “criminal drug statute” means a criminal statute involving manufacture, distribution, dispensation, use, or possession of a controlled substance.
(5) Drug-free workplace.—
The term “drug-free workplace” means a site of an entity—
(A) for the performance of work done in connection with a specific contract or grant described in section 8102 or 8103 of this title; and
(B) at which employees of the entity are prohibited from engaging in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance in accordance with the requirements of the Anti-Drug Abuse Act of 1988 (Public Law 100–690, 102 Stat. 4181).
(6) Employee.—
The term “employee” means the employee of a contractor or grantee directly engaged in the performance of work pursuant to the contract or grant described in section 8102 or 8103 of this title.
(7) Federal agency.—
The term “Federal agency” means an agency as defined in section 552(f) of title 5.
(8) Grantee.—
The term “grantee” means the department, division, or other unit of a person responsible for the performance under the grant.
(b) Construction.—
This chapter does not require law enforcement agencies to comply with this chapter if the head of the agency determines it would be inappropriate in connection with the agency’s undercover operations.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3826.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
8101(a)(1)
41:706(7).
Pub. L. 100–690, title V, §§ 5157, 5158, Nov. 18, 1988, 102 Stat. 4308.
8101(a)(2)
41:706(3).
8101(a)(3)
41:706(4).
8101(a)(4)
41:706(5).
8101(a)(5)
41:706(1).
8101(a)(6)
41:706(2).
8101(a)(7)
41:706(8).
8101(a)(8)
41:706(6).
8101(b)
41:707.
41 U.S.C. § 8104 (PUBLIC CONTRACTS)
§ 8104. Employee sanctions and remedies
Within 30 days after receiving notice from an employee of a conviction pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) of this title, a contractor or grantee shall—
(1) take appropriate personnel action against the employee, up to and including termination; or
(2) require the employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for those purposes by a Federal, State, or local health, law enforcement, or other appropriate agency.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3830.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
8104
41:703.
Pub. L. 100–690, title V, § 5154, Nov. 18, 1988, 102 Stat. 4307.
41 U.S.C. § 8105 (PUBLIC CONTRACTS)
§ 8105. Waiver
(a) In General.—
The head of an agency may waive a suspension of payments, termination of the contract or grant, or suspension or debarment of a contractor or grantee under this chapter with respect to a particular contract or grant if—
(1) in the case of a contract, the head of the agency determines under section 8102(b)(1) of this title, after a final determination is issued under section 8102(b)(1), that suspension of payments, termination of the contract, suspension or debarment of the contractor, or refusal to permit a person to be treated as a responsible source for a contract would severely disrupt the operation of the agency to the detriment of the Federal Government or the general public; or
(2) in the case of a grant, the head of the agency determines that suspension of payments, termination of the grant, or suspension or debarment of the grantee would not be in the public interest.
(b) Waiver Authority May Not Be Delegated.—
The authority of the head of an agency under this section to waive a suspension, termination, or debarment shall not be delegated.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3830.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
8105
41:704.
Pub. L. 100–690, title V, § 5155, Nov. 18, 1988, 102 Stat. 4307.
41 U.S.C. § 8106 (PUBLIC CONTRACTS)
§ 8106. Regulations
Government-wide regulations governing actions under this chapter shall be issued pursuant to division B of subtitle I of this title.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3830.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
8106
41:705.
Pub. L. 100–690, title V, § 5156, Nov. 18, 1988, 102 Stat. 4308.
The words “Not later than 90 days after November 18, 1988, the” are omitted as obsolete.