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41 U.S.C. § 3503 (PUBLIC CONTRACTS)
§ 3503. Exceptions
(a) In General.—
Submission of certified cost or pricing data shall not be required under section 3502 of this title in the case of a contract, a subcontract, or a modification of a contract or subcontract—
(1) for which the price agreed on is based on—
(A) adequate price competition; or
(B) prices set by law or regulation;
(2) for the acquisition of a commercial product or a commercial service; or
(3) in an exceptional case when the head of the procuring activity, without delegation, determines that the requirements of this chapter may be waived and justifies in writing the reasons for the determination.
(b) Modifications of Contracts and Subcontracts for Commercial Products or Commercial Services.—
In the case of a modification of a contract or subcontract for a commercial product or a commercial service that is not covered by the exception to the submission of certified cost or pricing data in paragraph (1) or (2) of subsection (a), submission of certified cost or pricing data shall not be required under section 3502 of this title if—
(1) the contract or subcontract being modified is a contract or subcontract for which submission of certified cost or pricing data may not be required by reason of paragraph (1) or (2) of subsection (a); and
(2) the modification would not change the contract or subcontract from a contract or subcontract for the acquisition of a commercial product or a commercial service to a contract or subcontract for the acquisition of an item other than a commercial product or a commercial service.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3766; Pub. L. 115–232, div. A, title VIII, § 836(b)(12), Aug. 13, 2018, 132 Stat. 1863.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
3503
41:254b(b).
June 30, 1949, ch. 288, title III, § 304A(b), as added Pub. L. 103–355, title I, § 1251(a)(2), Oct. 13, 1994, 108 Stat. 3279; Pub. L. 104–106, title XLII, § 4201(b)(1), Feb. 10, 1996, 110 Stat. 651.
In subsection (b)(2), the words “as the case may be” are omitted as unnecessary.
heading: Editorial Notes
heading: Amendments
text: 2018—Subsec. (a)(2). Pub. L. 115–232, § 836(b)(12)(A), substituted “a commercial product or a commercial service” for “a commercial item”.
Subsec. (b). Pub. L. 115–232, § 836(b)(12)(B), in heading, substituted “Commercial Products or Commercial Services” for “Commercial Items” and, in text, substituted “a commercial product or a commercial service” for “a commercial item” wherever appearing.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
41 U.S.C. § 3505 (PUBLIC CONTRACTS)
§ 3505. Submission of other information
(a) Authority To Require Submission.—
When certified cost or pricing data are not required to be submitted under this chapter for a contract, subcontract, or modification of a contract or subcontract, the contracting officer shall require submission of data other than certified cost or pricing data to the extent necessary to determine the reasonableness of the price of the contract, subcontract, or modification of the contract or subcontract. Except in the case of a contract or subcontract covered by the exceptions in section 3503(a)(1) of this title, the contracting officer shall require that the data submitted include, at a minimum, appropriate information on the prices at which the same item or similar items have previously been sold that is adequate for evaluating the reasonableness of the price for the procurement.
(b) Limitations on Authority.—
The Federal Acquisition Regulation shall include the following provisions regarding the types of information that contracting officers may require under subsection (a):
(1) Reasonable limitations.—
Reasonable limitations on requests for sales data relating to commercial products or commercial services.
(2) Limitation on scope of request.—
A requirement that a contracting officer limit, to the maximum extent practicable, the scope of any request for information relating to commercial products or commercial services from an offeror to only that information that is in the form regularly maintained by the offeror in commercial operations.
(3) Information not to be disclosed.—
A statement that any information received relating to commercial products or commercial services that is exempt from disclosure under section 552(b) of title 5 shall not be disclosed by the Federal Government.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3767; Pub. L. 115–232, div. A, title VIII, § 836(b)(13), Aug. 13, 2018, 132 Stat. 1863.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
3505
41:254b(d).
June 30, 1949, ch. 288, title III, § 304A(d), as added Pub. L. 103–355, title I, § 1251(a)(2), Oct. 13, 1994, 108 Stat. 3281; Pub. L. 104–106, title XLII, §§ 4201(b)(1), 4321(e)(4), Feb. 10, 1996, 110 Stat. 652, 675; Pub. L. 105–261, div. A, title VIII, § 808(b), Oct. 17, 1998, 112 Stat. 2085.
heading: Editorial Notes
heading: Amendments
text: 2018—Subsec. (b). Pub. L. 115–232 substituted “commercial products or commercial services” for “commercial items” wherever appearing.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
41 U.S.C. § 3509 (PUBLIC CONTRACTS)
§ 3509. Notification of violations of Federal criminal law or overpayments
(a) Definition.—
In this section, the term “covered contract” means any contract in an amount greater than $5,000,000 and more than 120 days in duration.
(b) Federal Acquisition Regulation.—
The Federal Acquisition Regulation shall include, pursuant to FAR Case 2007–006 (as published at 72 Fed. Reg. 64019, November 14, 2007) or any follow-on FAR case, provisions that require timely notification by Federal contractors of violations of Federal criminal law or overpayments in connection with the award or performance of covered contracts or subcontracts, including those performed outside the United States and those for commercial products or commercial services.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3770; Pub. L. 115–232, div. A, title VIII, § 836(b)(14), Aug. 13, 2018, 132 Stat. 1864.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
3509
41:251 note.
Pub. L. 110–252, title VI, §§ 6102, 6103, June 30, 2008, 122 Stat. 2386, 2387.
In subsection (b), the words “shall include” are substituted for “shall be amended” and “to include” to reflect the permanence of the provision. The words “within 180 days after the date of the enactment of this Act” are omitted as obsolete.
heading: Editorial Notes
heading: Amendments
text: 2018—Subsec. (b). Pub. L. 115–232 substituted “commercial products or commercial services” for “commercial items”.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
41 U.S.C. § 3901 (PUBLIC CONTRACTS)
§ 3901. Contracts awarded using procedures other than sealed-bid procedures
(a) Authorized Types.—
Except as provided in section 3905 of this title, contracts awarded after using procedures other than sealed-bid procedures may be of any type which in the opinion of the agency head will promote the best interests of the Federal Government.
(b) Required Warranty.—
(1) Content.—
Every contract awarded after using procedures other than sealed-bid procedures shall contain a suitable warranty, as determined by the agency head, by the contractor that no person or selling agency has been employed or retained to solicit or secure the contract on an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for bona fide employees or bona fide established commercial or selling agencies the contractor maintains to secure business.
(2) Remedy for breach or violation.—
For the breach or violation of the warranty, the Federal Government may annul the contract without liability or deduct from the contract price or consideration the full amount of the commission, percentage, brokerage, or contingent fee.
(3) Nonapplication.—
Paragraph (1) does not apply to a contract for an amount that is not greater than the simplified acquisition threshold or to a contract for the acquisition of commercial products or commercial services.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3774; Pub. L. 115–232, div. A, title VIII, § 836(b)(16), Aug. 13, 2018, 132 Stat. 1864.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
3901
41:254(a).
June 30, 1949, ch. 288, title III, § 304(a), 63 Stat. 395; Pub. L. 98–369, div. B, title VII, § 2714(a)(3)(A), (B), July 18, 1984, 98 Stat. 1184; Pub. L. 103–355, title IV, § 4103(c), title VIII, § 8204(b), Oct. 13, 1994, 108 Stat. 3341, 3396.
In subsection (b)(2), the words “in its discretion” are omitted as unnecessary.
heading: Editorial Notes
heading: Amendments
text: 2018—Subsec. (b)(3). Pub. L. 115–232 substituted “commercial products or commercial services” for “commercial items”.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
41 U.S.C. § 3902 (PUBLIC CONTRACTS)
§ 3902. Severable services contracts for periods crossing fiscal years
(a) Authority To Enter Into Contract.—
The head of an executive agency may enter into a contract for the procurement of severable services for a period that begins in one fiscal year and ends in the next fiscal year if (without regard to any option to extend the period of the contract) the contract period does not exceed one year.
(b) Obligation of Funds.—
Funds made available for a fiscal year may be obligated for the total amount of a contract entered into under the authority of this section.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3774.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
3902
41:253l.
June 30, 1949, ch. 288, title III, § 303L, as added Pub. L. 103–355, title I, § 1073, Oct. 13, 1994, 108 Stat. 3271, as amended Pub. L. 104–106, title XLIII, § 4321(a)(1), Feb. 10, 1996, 110 Stat. 671.
heading: Statutory Notes and Related Subsidiaries
heading: Severable Services and Multiyear Contract Authority of Judicial Entities
text: Pub. L. 113–76, div. E, title III, § 306, Jan. 17, 2014, 128 Stat. 203, provided that: “The Supreme Court of the United States, the Federal Judicial Center, and the United States Sentencing Commission are hereby authorized, now and hereafter, to enter into contracts for the acquisition of severable services for a period that begins in one fiscal year and ends in the next fiscal year and to enter into contracts for multiple years for the acquisition of property and services, to the same extent as executive agencies under the authority of 41 U.S.C. sections 3902 and 3903, respectively.”
41 U.S.C. § 4301 (PUBLIC CONTRACTS)
§ 4301. Definitions
In this chapter:
(1) Compensation.—
The term “compensation”, for a fiscal year, means the total amount of wages, salary, bonuses, and deferred compensation for the fiscal year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the fiscal year.
(2) Covered contract.—
The term “covered contract” means a contract for an amount in excess of $500,000 that is entered into by an executive agency, except that the term does not include a fixed-price contract without cost incentives or any firm fixed-price contract for the purchase of commercial products or commercial services.
(3) Fiscal year.—
The term “fiscal year” means a fiscal year established by a contractor for accounting purposes.
(4) Senior executive.—
The term “senior executive”, with respect to a contractor, means the 5 most highly compensated employees in management positions at each home office and each segment of the contractor.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3784; Pub. L. 115–232, div. A, title VIII, § 836(b)(17), Aug. 13, 2018, 132 Stat. 1864.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
4301(1)
41:256(m)(1).
June 30, 1949, ch. 288, title III, § 306(m), as added Pub. L. 105–85, title VIII, § 808(b)(2), Nov. 18, 1997, 111 Stat. 1836; Pub. L. 105–261, title VIII, § 804(b), Oct. 17, 1998, 112 Stat. 2083.
4301(2)
41:256(l)(1).
June 30, 1949, ch. 288, title III, § 306(l)(1), as added Pub. L. 100–700, § 8(a)(1), Nov. 19, 1988, 102 Stat. 4634; Pub. L. 103–355, title II, § 2151, Oct. 13, 1994, 108 Stat. 3315.
4301(3)
41:256(m)(3).
4301(4)
41:256(m)(2).
heading: Editorial Notes
heading: Amendments
text: 2018—Par. (2). Pub. L. 115–232 substituted “commercial products or commercial services” for “commercial items”.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
41 U.S.C. § 4501 (PUBLIC CONTRACTS)
§ 4501. Authority of executive agency
An executive agency may—
(1) make advance, partial, progress or other payments under contracts for property or services made by the agency; and
(2) insert in solicitations for procurement of property or services a provision limiting to small business concerns advance or progress payments.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3790.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
4501
41:255(a).
June 30, 1949, ch. 288, title III, § 305(a), 63 Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 72 Stat. 966; Pub. L. 103–355, title II, § 2051(a)(2), (c), Oct. 13, 1994, 108 Stat. 3304.
heading: Statutory Notes and Related Subsidiaries
heading: Relationship to Prompt Payment Requirements
text: Pub. L. 103–355, title II, § 2051(f), Oct. 13, 1994, 108 Stat. 3306, provided that: “The amendments made by this section [see Tables for classification] are not intended to impair or modify procedures required by the provisions of chapter 39 of title 31, United States Code, and the regulations issued pursuant to such provisions of law (as such procedures are in effect on the date of the enactment of this Act [Oct. 13, 1994]), except that the Government may accept payment terms offered by a contractor offering a commercial item.”
41 U.S.C. § 4505 (PUBLIC CONTRACTS)
§ 4505. Payments for commercial products and commercial services
(a) Terms and Conditions for Payments.—
Payments under section 4501 of this title for commercial products or commercial services may be made under terms and conditions that the head of the executive agency determines are appropriate or customary in the commercial marketplace and are in the best interests of the Federal Government.
(b) Security for Payments.—
The head of the executive agency shall obtain adequate security for the payments. If the security is in the form of a lien in favor of the Federal Government, the lien is paramount to all other liens and is effective immediately on the first payment, without filing, notice, or other action by the Federal Government.
(c) Limitation on Advance Payments.—
Advance payments made under section 4501 of this title for commercial products or commercial services may include payments, in a total amount not more than 15 percent of the contract price, in advance of any performance of work under the contract.
(d) Nonapplication of Certain Conditions.—
The conditions of sections 4503 and 4504 of this title need not be applied if they would be inconsistent, as determined by the head of the executive agency, with commercial terms and conditions pursuant to this section.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3791; Pub. L. 115–232, div. A, title VIII, § 836(b)(18)(A), (B)(i), Aug. 13, 2018, 132 Stat. 1864.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
4505
41:255(f).
June 30, 1949, ch. 288, title III, § 305(f), as added Pub. L. 103–355, title II, § 2051(e), Oct. 13, 1994, 108 Stat. 3304, as amended Pub. L. 104–106, title XLIII, § 4321(a)(4), Feb. 10, 1996, 110 Stat. 671.
heading: Editorial Notes
heading: Amendments
text: 2018—Pub. L. 115–232, § 836(b)(18)(B)(i), substituted “Payments for commercial products and commercial services” for “Payments for commercial items” in section catchline.
Subsecs. (a), (c). Pub. L. 115–232, § 836(b)(18)(A), substituted “commercial products or commercial services” for “commercial items”.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
41 U.S.C. § 4704 (PUBLIC CONTRACTS)
§ 4704. Prohibition of contractors limiting subcontractor sales directly to Federal Government
(a) Contract Restrictions.—
Each contract for the purchase of property or services made by an executive agency shall provide that the contractor will not—
(1) enter into an agreement with a subcontractor under the contract that has the effect of unreasonably restricting sales by the subcontractor directly to the Federal Government of any item or process (including 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 subcontractor to make sales described in paragraph (1) to the Federal Government.
(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 products or commercial services and a subcontractor under the contract 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 included 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 products or commercial services from that subcontractor.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3795; Pub. L. 115–232, div. A, title VIII, § 836(b)(19), Aug. 13, 2018, 132 Stat. 1864.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
4704(a)
41:253g(a).
June 30, 1949, ch. 288, title III, § 303G(a), (b), formerly § 303H, as added Pub. L. 98–577, title II, § 206(a), Oct. 30, 1984, 98 Stat. 3073; renumbered § 303G, Pub. L. 99–145, title XIII, § 1304(c)(4)(A), Nov. 8, 1985, 99 Stat. 742.
4704(b)
41:253g(b).
4704(c)
41:253g(c).
June 30, 1949, ch. 288, title III, § 303G(c), as added Pub. L. 103–355, title IV, § 4103(b), Oct. 13, 1994, 108 Stat. 3341.
4704(d)
41:253g(d).
June 30, 1949, ch. 288, title III, § 303G(d), as added Pub. L. 103–355, title VIII, § 8204(a), Oct. 13, 1994, 108 Stat. 3396.
heading: Editorial Notes
heading: Amendments
text: 2018—Subsec. (d). Pub. L. 115–232 substituted “commercial products or commercial services” for “commercial items” in two places.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.
41 U.S.C. § 6505 (PUBLIC CONTRACTS)
§ 6505. Exclusions
(a) Items Available in the Open Market.—
This chapter does not apply to the purchase of materials, supplies, articles, or equipment that may usually be bought in the open market.
(b) Perishables and Agricultural Products.—
This chapter does not apply to any of the following:
(1) Perishables, including dairy, livestock and nursery products.
(2) Agricultural or farm products processed for first sale by the original producers.
(3) Contracts made by the Secretary of Agriculture for the purchase of agricultural commodities or products of agricultural commodities.
(c) Carriage of Freight or Personnel.—
This chapter may not be construed to apply to—
(1) the carriage of freight or personnel by vessel, airplane, bus, truck, express, or railway line where published tariff rates are in effect; or
(2) common carriers subject to the Communications Act of 1934 (47 U.S.C. 151 et seq.).
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3809.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
6505
41:43.
June 30, 1936, ch. 881, § 9, 49 Stat. 2039.
heading: Editorial Notes
heading: References in Text
text: The Communications Act of 1934, referred to in subsec. (c)(2), 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.