50 U.s.c. 1431-1434

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50 USC Sec. 1431 01/08/2008

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TITLE 50 - WAR AND NATIONAL DEFENSE

CHAPTER 29 - NATIONAL DEFENSE CONTRACTS

-HEAD-

Sec. 1431. Authorization; official approval; Congressional action:

notification of committees of certain proposed obligations,

resolution of disapproval, continuity of session, computation of

period

-STATUTE-

The President may authorize any department or agency of the

Government which exercises functions in connection with the

national defense, acting in accordance with regulations prescribed

by the President for the protection of the Government, to enter

into contracts or into amendments or modifications of contracts

heretofore or hereafter made and to make advance payments thereon,

without regard to other provisions of law relating to the making,

performance, amendment, or modification of contracts, whenever he

deems that such action would facilitate the national defense. The

authority conferred by this section shall not be utilized to

obligate the United States in an amount in excess of $50,000

without approval by an official at or above the level of an

Assistant Secretary or his Deputy, or an assistant head or his

deputy, of such department or agency, or by a Contract Adjustment

Board established therein. The authority conferred by this section

may not be utilized to obligate the United States in any amount in

excess of $25,000,000 unless the Committees on Armed Services of

the Senate and the House of Representatives have been notified in

writing of such proposed obligation and 60 days of continuous

session of Congress have expired following the date on which such

notice was transmitted to such Committees. For purposes of this

section, the continuity of a session of Congress is broken only by

an adjournment of the Congress sine die at the end of a Congress,

and the days on which either House is not in session because of an

adjournment of more than 3 days to a day certain, or because of an

adjournment sine die other than at the end of a Congress, are

excluded in the computation of such 60-day period.

-SOURCE-

(Pub. L. 85-804, Sec. 1, Aug. 28, 1958, 72 Stat. 972; Pub. L. 93-

155, title VIII, Sec. 807(a), Nov. 16, 1973, 87 Stat. 615; Pub. L.

101-510, div. A, title XIII, Sec. 1313, Nov. 5, 1990, 104 Stat.

1670; Pub. L. 102-25, title VII, Sec. 705(f), Apr. 6, 1991, 105

Stat. 120.)

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AMENDMENTS

1991 - Pub. L. 102-25, Sec. 705(f)(1), inserted before period at

end of third sentence "and 60 days of continuous session of

Congress have expired following the date on which such notice was

transmitted to such Committees".

Pub. L. 102-25, Sec. 705(f)(2), in fourth sentence, inserted "at

the end of a Congress" after "sine die" and ", or because of an

adjournment sine die other than at the end of a Congress," after

"to a day certain".

1990 - Pub. L. 101-510 struck out before period at end of third

sentence "and 60 days of continuous session of Congress have

expired following the date on which such notice was transmitted to

such Committees and neither House of Congress has adopted, within

such 60-day period, a resolution disapproving such obligation".

1973 - Pub. L. 93-155 provided for notification of Congressional

Committees with respect to certain proposed obligations,

Congressional resolution of disapproval, continuity of

Congressional session, and computation of period.

EFFECTIVE DATE OF 1991 AMENDMENT

Section 705(f)(1) of Pub. L. 102-25 provided that the amendment

made by that section is effective as of Nov. 6, 1990.

NONAPPLICABILITY OF NATIONAL EMERGENCIES ACT

The provisions of the National Emergencies Act [see Short Title

note set out under section 1601 of this title] shall not apply to

the powers and authorities conferred by this section and actions

taken hereunder, see section 1651(a)(4) of this title.

OBLIGATIONS ENTERED INTO BEFORE NOVEMBER 16, 1973

Amendment by Pub. L. 93-155 not affecting the carrying out of any

contract, loan, guarantee, commitment, or other obligation entered

into prior to Nov. 16, 1973, see section 807(e) of Pub. L. 93-155,

set out as a note under section 2307 of Title 10, Armed Forces.

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50 USC Sec. 1432 01/08/2008

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TITLE 50 - WAR AND NATIONAL DEFENSE

CHAPTER 29 - NATIONAL DEFENSE CONTRACTS

-HEAD-

Sec. 1432. Restrictions

-STATUTE-

Nothing in this chapter shall be construed to constitute

authorization hereunder for -

(a) the use of the cost-plus-a-percentage-of-cost system of

contracting;

(b) any contract in violation of existing law relating to

limitation of profits;

(c) the negotiation of purchases of or contracts for property

or services required by law to be procured by formal advertising

and competitive bidding;

(d) the waiver of any bid, payment, performance, or other bond

required by law;

(e) the amendment of a contract negotiated under section

2304(a)(15) (!1) of title 10 or under section 252(c)(13) (!1) of

title 41, to increase the contract price to an amount higher than

the lowest rejected bid of any responsible bidder; or

(f) the formalization of an informal commitment, unless it is

found that at the time the commitment was made it was

impracticable to use normal procurement procedures.

-SOURCE-

(Pub. L. 85-804, Sec. 2, Aug. 28, 1958, 72 Stat. 972.)

-REFTEXT-

REFERENCES IN TEXT

Section 2304 of title 10, referred to in subd. (e), was amended

generally by Pub. L. 98-369 and, as so amended, does not contain a

subsec. (a)(15).

Section 252(c)(13) of title 41, referred to in subd. (e), was

renumbered section 252(c)(14) of Title 41, Public Contracts, by

Pub. L. 85-800, Sec. 2(b), Aug. 28, 1958, 72 Stat. 966.

Subsequently, Pub. L. 98-369 amended section 252 of Title 41 by

striking out subsec. (c), redesignating subsec. (e) as (c)(1), and

adding subsec. (c)(2).

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NONAPPLICABILITY OF NATIONAL EMERGENCIES ACT

The provisions of the National Emergencies Act [see Short Title

note set out under section 1601 of this title] shall not apply to

the powers and authorities conferred by this section and actions

taken hereunder, see section 1651(a)(4) of this title.

-FOOTNOTE-

(!1) See References in Text note below.

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50 USC Sec. 1433 01/08/2008

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TITLE 50 - WAR AND NATIONAL DEFENSE

CHAPTER 29 - NATIONAL DEFENSE CONTRACTS

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Sec. 1433. Public record; examination of records by Comptroller

General; exemptions: exceptional conditions; reports to Congress

-STATUTE-

(a) All actions under the authority of this chapter shall be made

a matter of public record under regulations prescribed by the

President and when deemed by him not to be detrimental to the

national security.

(b) All contracts entered into, amended, or modified pursuant to

authority contained in this chapter shall include a clause to the

effect that the Comptroller General of the United States or any of

his duly authorized representatives shall, until the expiration of

three years after final payment, have access to and the right to

examine any directly pertinent books, documents, papers, and

records of the contractor or any of his subcontractors engaged in

the performance of and involving transactions related to such

contracts or subcontracts. Under regulations to be prescribed by

the President, however, such clause may be omitted from contracts

with foreign contractors or foreign subcontractors if the agency

head determines, with the concurrence of the Comptroller General of

the United States or his designee, that the omission will serve the

best interests of the United States. However, the concurrence of

the Comptroller General of the United States or his designee is not

required for the omission of such clause -

(1) where the contractor or subcontractor is a foreign

government or agency thereof or is precluded by the laws of the

country involved from making its books, documents, papers, or

records available for examination; and

(2) where the agency head determines, after taking into account

the price and availability of the property or services from

United States sources, that the public interest would be best

served by the omission of the clause.

If the clause is omitted based on a determination under clause (2),

a written report shall be furnished to the Congress.

-SOURCE-

(Pub. L. 85-804, Sec. 3, Aug. 28, 1958, 72 Stat. 972; Pub. L. 89-

607, Sec. 3, Sept. 27, 1966, 80 Stat. 851.)

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AMENDMENTS

1966 - Subsec. (b). Pub. L. 89-607 provided for exemption of

certain contracts with foreign contractors from the requirement for

an examination-of-records clause, such determination to be reported

to Congress.

EXEMPTION OF FUNCTIONS

Functions with respect to purchases authorized to be made outside

the limits of the United States or the District of Columbia under

the Foreign Assistance Act of 1961, as amended [see Short Title

note set out under section 2151 of Title 22, Foreign Relations and

Intercourse], as exempt, see Ex. Ord. No. 11223, eff. May 12, 1965,

30 F.R. 6635, set out under section 2393 of Title 22.

FOREIGN CONTRACTORS

Secretaries of Defense, Army, Navy, or Air Force, or their

designees, to determine, prior to exercising the authority provided

in the amendment by Pub. L. 89-607 to exempt certain contracts with

foreign contractors from the requirement of an examination-of-

records clause, that all reasonable efforts have been made to

include such examination-of-records clause, as required by par. 11

of Part I of Ex. Ord. No. 10789, and that alternate sources of

supply are not reasonably available, see par. 11 of Part I of Ex.

Ord. No. 10789, eff. Nov. 14, 1958, 23 F.R. 8897, as amended, set

out under section 1431 of this title.

NONAPPLICABILITY OF THE NATIONAL EMERGENCIES ACT

The provisions of the National Emergencies Act [see Short Title

note set out under section 1601 of this title] shall not apply to

the powers and authorities conferred by this section and actions

taken hereunder, see section 1651(a)(4) of this title.

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50 USC Sec. 1434 01/08/2008

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TITLE 50 - WAR AND NATIONAL DEFENSE

CHAPTER 29 - NATIONAL DEFENSE CONTRACTS

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Sec. 1434. Repealed.

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Sec. 1434. Repealed. Pub. L. 105-362, title IX, Sec. 901(r)(1)(A),

Nov. 10, 1998, 112 Stat. 3291.

Section, Pub. L. 85-804, Sec. 4, Aug. 28, 1958, 72 Stat. 972;

Pub. L. 104-66, title III, Sec. 3001(g), Dec. 21, 1995, 109 Stat.

734, related to reports to Congress by departments and agencies

acting under authority of this chapter and requirement that such

reports be published in the Congressional Record.