US (United States) Code. Title 41. Chapter 2: Termination of war contracts

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Public contracts

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-CITE-

41 USC CHAPTER 2 - TERMINATION OF WAR CONTRACTS 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-MISC1-

Sec.

101. Declaration of policy.

102. Surveillance by Congress.

103. Definitions.

104. Administration of chapter.

(a) Repealed.

(b) Rules and regulations.

(c) Compliance.

(d) Personnel; supplies, facilities, and services.

(e) Publication in Federal Register.

105. Contract Settlement Advisory Board; composition;

duties.

106. Basis for settlement of termination claims.

(a) Priority to private contractors.

(b) Establishment of methods and standards.

(c) Conclusiveness of settlement.

(d) Allowable costs.

(e) Settlement by agreement.

(f) Interest.

(g) Amendment of contracts.

107. Settlement of subcontractors' claims.

(a) Conclusiveness of settlement.

(b) Supervision of payments to war contractors.

(c) Group settlements.

(d) Direct settlement by contracting agency.

(e) Amount of settlement.

(f) Equitable payments.

108. Interim financing.

(a) Prime contractors.

(b) Method of financing; amounts payable.

(c) Evidence to support financing.

(d) Penalty for overstatement of claims.

(e) Advance payments as part of termination

settlement.

(f) Liquidation of loans, etc., prior to final

settlement.

(g) Settlement of claims; validation of prior

financing.

109. Advance or partial payments to subcontractors;

excessive payments, interest, liability of war

contractor.

110. Guarantee of loans, advances, etc.

(a) By contract.

(b) By assignment.

(c) Federal Reserve bank as fiscal agent.

(d) Application of other laws.

111. Termination of contracts.

(a) Advance notice; prime contracts.

(b) Cessation of work without termination.

(c) Authority of Administrator of General Services;

classes of contracts.

112. Removal and storage of materials.

(a) Termination inventory.

(b) Statement on material of inventory.

(c) Removal and storage by Government agency.

(d) Removal and storage by war contractor.

(e) Acquisition by Government agency of inventory

material; liability.

(f) Postponement or delay of termination

settlement.

(g) Government-owned machinery.

(h) Limitation on Government acquisition of

inventories.

(i) Removal and storage by war contractor at own

risk.

113. Appeals.

(a) Failure to settle claims by agreement;

preparation of findings; notice to war

contractor.

(b) Rights of war contractor.

(c) Procedure.

(d) Omitted.

(e) Arbitration.

(f) Conclusiveness of decisions.

114. Court of Federal Claims.

(a) Appointment of auditors.

(b) Procedure.

(c) Jurisdiction.

115. Personal financial liability of contracting officers.

116. Repealed.

117. Defective, informal, and quasi contracts.

(a) Lack of formalized contract.

(b) Technical defects or omissions.

(c) Failure to settle.

(d) Formalization of obligations; termination date

for filing claims.

118. Administration.

(a) Records and forms.

(b) Repealed.

(c) Advance notice on cut-backs.

(d) Investigations.

(e) Certification of fraudulent settlements to

Department of Justice.

119. Fraudulent claims, vouchers, statements, etc.;

jurisdiction.

120. Powers and duties of contracting agencies.

(a) Limitation.

(b) Evidence required; conclusiveness of

determinations.

(c) Appropriations.

(d) Validation of prior settlements.

(e) Impairment of contract.

(f) Aid to war contractors.

121. Administrator of General Services; additional duties.

122. Use of appropriated funds.

123. Delegation of authority by Administrator of General

Services.

(a) Officers and agencies of General Services

Administration and other governmental

agencies.

(b) Authority delegated to other governmental

agencies.

(c) Joint exercise of delegated authority.

(d) Application to other laws.

124. Effective date; applicability to lend lease contracts.

125. Exemption of certain contracts outside continental

United States or in Alaska.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 5 sections 551, 701.

-End-

-CITE-

41 USC Sec. 101 01/06/03

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TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 101. Declaration of policy

-STATUTE-

The Congress declares that the objectives of this chapter are -

(a) to facilitate maximum war production during the war, and to

expedite reconversion from war production to civilian production

as war conditions permit;

(b) to assure to prime contractors and subcontractors, small

and large, speedy and equitable final settlement of claims under

terminated war contracts, and adequate interim financing until

such final settlement;

(c) to assure uniformity among Government agencies in basic

policies and administration with respect to such termination

settlements and interim financing;

(d) to facilitate the efficient use of materials, manpower, and

facilities for war and civilian purposes by providing prime

contractors and subcontractors with notice of termination of

their war contracts as far in advance of the cessation of work

thereunder as is feasible and consistent with the national

security;

(e) to assure the expeditious removal from the plants of prime

contractors and subcontractors of termination inventory not to be

retained or sold by the contractor;

(f) to use all practicable methods compatible with the

foregoing objectives to prevent improper payments and to detect

and prosecute fraud.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 1, 58 Stat. 649.)

-MISC1-

SHORT TITLE

Section 27 of act July 1, 1944, provided that: "This Act

[enacting this chapter] may be cited as the 'Contract Settlement

Act of 1944'."

SEPARABILITY

Section 26 of act July 1, 1944, provided: "If any provision of

this Act [enacting this chapter], or the application of such

provision to any person or circumstance, is held invalid, the

remainder of this Act or the application of such provision to

persons or circumstances other than those as to which it is held

invalid, shall not be affected thereby."

-End-

-CITE-

41 USC Sec. 102 01/06/03

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TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 102. Surveillance by Congress

-STATUTE-

(a) To assist the Congress in appraising the administration of

this chapter and in developing such amendments or related

legislation as may further be necessary to accomplish the

objectives of this chapter, the appropriate committees of the

Senate and the House of Representatives shall study each report

submitted to the Congress under this chapter and shall otherwise

maintain continuous surveillance of the operations of the

Government agencies under this chapter.

(b) Repealed. Oct. 31, 1951, ch. 654, Sec. 1(110), 65 Stat. 705.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 2, 58 Stat. 649; Oct. 31, 1951, ch.

654, Sec. 1(110), 65 Stat. 705.)

-MISC1-

AMENDMENTS

1951 - Subsec. (b). Act Oct. 31, 1949, repealed subsec. (b) which

related to reports to Congress.

-End-

-CITE-

41 USC Sec. 103 01/06/03

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TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 103. Definitions

-STATUTE-

As used in this chapter -

(a) The term "prime contract" means any contract, agreement, or

purchase order heretofore or hereafter entered into by a

contracting agency and connected with or related to the prosecution

of the war; and the term "prime contractor" means any holder of one

or more prime contracts.

(b) The term "subcontract" means any contract, agreement, or

purchase order heretofore or hereafter entered into to perform any

work, or to make or furnish any material to the extent that such

work or material is required for the performance of any one or more

prime contracts or of any one or more other subcontracts; and the

term "subcontractor" means any holder of one or more subcontracts.

(c) The term "war contract" means a prime contract or a

subcontract; and the term "war contractor" means any holder of one

or more war contracts.

(d) The terms "termination", "terminate" and "terminated" refer

to the termination or cancellation, in whole or in part, of work

under a prime contract for the convenience or at the option of the

Government (except for default of the prime contractor) or of work

under a subcontract for any reason except the default of the

subcontractor.

(e) The term "material" includes any article, commodity,

machinery, equipment, accessory, part, component, assembly, work in

process, maintenance, repair, and operating supplies, and any

product of any kind.

(f) The term "Government agency" means any executive department

of the Government, or any administrative unit or subdivision

thereof, any independent agency or any corporation owned or

controlled by the United States in the executive branch of the

Government, and includes any contracting agency.

(g) The term "contracting agency" means any Government agency,

which has been or hereafter may be authorized to make contracts

pursuant to section 611 (!1) of Appendix to title 50, and includes

the Reconstruction Finance Corporation and any corporation

organized pursuant to the Reconstruction Finance Corporation Act,

and the Secretary of Commerce.

(h) The term "termination claim" means any claim or demand by a

war contractor for fair compensation for the termination of any war

contract and any other claim under a terminated war contract, which

regulations prescribed under this chapter authorize to be asserted

and settled in connection with any termination settlement.

(i) The term "interim financing" includes advance payments,

partial payments, loans, discounts, advances, and commitments in

connection therewith, and guaranties of loans, discounts, advances,

and commitments in connection therewith and any other type of

financing made in contemplation of or related to termination of war

contracts.

(j) The term "Administrator" means the Administrator of General

Services.

(k) The term "person" means any individual, corporation,

partnership, firm, association, trust, estate, or other entity.

(l) The term "termination inventory" means any materials

(including a proper part of any common materials), properly

allocable to the terminated portion of a war contract, except any

machinery or equipment subject to a separate contract specifically

governing the use or disposition thereof.

(m) The term "final and conclusive", as applied to any

settlement, finding, or decision, means that such settlement,

finding, or decision shall not be reopened, annulled, modified, set

aside, or disregarded by any officer, employee, or agent of the

United States or in any suit, action, or proceeding except as

provided in this chapter.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 3, 58 Stat. 650; Ex. Ord. No. 9638,

Sec. 1, eff. Oct. 4, 1945, 10 F.R. 12591; Ex. Ord. No. 9809, Secs.

1, 8 eff. Dec. 12, 1946, 11 F.R. 14281; Ex. Ord. No. 9841, Secs.

101, 203, eff. Apr. 23, 1947, 12 F.R. 2645; June 30, 1947, ch. 166,

title II, Sec. 207, 61 Stat. 209; 1947 Reorg. Plan No. 1, Sec. 201,

eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30, 1949, ch.

288, title I, Sec. 102(b), 63 Stat. 380.)

-REFTEXT-

REFERENCES IN TEXT

Section 611 of Appendix to title 50, referred to in subsec. (g),

was repealed by Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat.

651. See section 1431 et seq. of Title 50, War and National

Defense.

The Reconstruction Finance Corporation Act, referred to in

subsec. (g), is act Jan. 22, 1932, ch. 8, 47 Stat. 5, as amended,

which was classified to chapter 14 (Sec. 601 et seq.) of Title 15,

Commerce and Trade, and has been eliminated from the Code. For

complete classification of this Act to the Code prior to its

elimination from the Code, see Tables.

-COD-

CODIFICATION

In subsec. (g), the Smaller War Plants Corporation was omitted

from the definition of the term "contracting agency," in subsec.

(g) on the authority of section 207 of Act June 30, 1947, which

provided: "The liquidation of the affairs of the Smaller War Plants

Corporation administered by the Reconstruction Finance Corporation

pursuant to Executive Order 9665 shall be carried out by the

Reconstruction Finance Corporation, notwithstanding the provisions

of the last paragraph of section 5 of the First War Powers Act,

1941 [section 605 of Title 50, Appendix, War and National Defense].

The Smaller War Plants Corporation is hereby abolished."

-TRANS-

TRANSFER OF FUNCTIONS

In subsec. (g), "Secretary of Commerce" substituted for "War

Production Board" in view of transfer of War Production Board

functions to Civilian Production Administration, then to Office of

Temporary Controls, and then to Secretary of Commerce by Ex. Ord.

Nos. 9638, 9809, and 9841.

In subsec. (j), functions of Director of Contract Settlement

transferred to Secretary of the Treasury by Ex. Ord. No. 9809, Sec.

8, and Reorg. Plan No. 1 of 1947, Sec. 201, were retransferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

ABOLITION OF RECONSTRUCTION FINANCE CORPORATION

Reorg. Plan No. 1 of 1957, Sec. 6(a), eff. June 30, 1957, 22 F.R.

4633, 71 Stat. 647, set out in the Appendix to Title 5, Government

Organization and Employees, abolished Reconstruction Finance

Corporation.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 18 sections 443, 3287.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

41 USC Sec. 104 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 104. Administration of chapter

-STATUTE-

(a) Repealed. Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat.

652

(b) Rules and regulations

In order to insure uniform and efficient administration of the

provisions of this chapter, the Administrator of General Services,

subject to such provisions, by general orders or general

regulations -

(1) shall prescribe policies, principles, methods, procedures,

and standards to govern the exercise of the authority and

discretion and the performance of the duties and functions of all

Government agencies under this chapter; and

(2) may require or restrict the exercise of any such authority

and discretion, or the performance of any such duty or function,

to such extent as he deems necessary to carry out the provisions

of this chapter.

(c) Compliance

The exercise of any authority or discretion and the performance

of any duty or function, conferred or imposed on any Government

agency by this chapter, shall be subject to such orders and

regulations prescribed by the Administrator of General Services

pursuant to subsection (b) of this section. Each Government agency

shall carry out such orders and regulations of the Administrator of

General Services expeditiously, and shall issue such regulations

with respect to its operations and procedures as may be necessary

to carry out the policies, principles, methods, procedures, and

standards prescribed by the Administrator of General Services. Any

Government agency may issue such further regulations not

inconsistent with the general orders or regulations of the

Administrator of General Services as it deems necessary or

desirable to carry out the provisions of this chapter.

(d) Personnel; supplies, facilities, and services

The Administrator of General Services may, within the limits of

funds which may be made available, employ and fix the compensation

of necessary personnel in accordance with the provisions of the

civil-service laws and chapter 51 and subchapter III of chapter 53

of title 5, and make expenditures for supplies, facilities, and

services necessary for the performance of his functions under this

chapter. Without regard to the provisions of the civil-service

laws, he may employ certified public accountants, qualified cost

accountants, industrial engineers, appraisers, and other experts,

and contract with certified public accounting firms and qualified

firms of engineers in the discharge of the duties imposed upon him

and in furtherance of the objectives and policies of this chapter.

The Administrator of General Services shall perform the duties

imposed upon him through the personnel and facilities of the

contracting agencies and other established Government agencies, to

the extent that this does not interfere with the function of the

Administrator of General Services to insure uniform and efficient

administration of the provisions of this chapter.

(e) Publication in Federal Register

All orders and regulations prescribed by the Administrator of

General Services or any Government agency under this chapter shall

be published in the Federal Register.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 4, 58 Stat. 651; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380; Oct. 28, 1949,

ch. 782, title XI, Sec. 1106(a), 63 Stat. 972; Pub. L. 89-554, Sec.

8(a), Sept. 6, 1966, 80 Stat. 652.)

-REFTEXT-

REFERENCES IN TEXT

The civil-service laws, referred to in subsec. (d), are set forth

in Title 5, Government Organization and Employees. See,

particularly, section 3301 et seq. of Title 5.

-COD-

CODIFICATION

In subsec. (d) of this section, "chapter 51 and subchapter III of

chapter 53" substituted for "the Classification Act of 1949" on

authority of Pub. L. 89-554, Sec. 7(b), Sept. 6, 1966, 80 Stat.

631, the first section of which enacted Title 5, Government

Organization and Employees.

In the second sentence of this section, provisions that

authorized the appointment of a Deputy Director and that authorized

the employment of certified public accountants, qualified cost

accountants, industrial engineers, appraisers, and other experts

without regard to "the Classification Act of 1923", were omitted as

obsolete. Sections 1202 and 1204 of the Classification Act of 1949,

63 Stat. 972, 973, repealed the 1923 Act and all laws or parts of

laws inconsistent with the 1949 Act. While section 1106(a) of the

1949 Act provided that references in other laws to the 1923 Act

should be held and considered to mean the 1949 Act, it did not have

the effect of continuing the exceptions contained in this sentence

because of section 1106(b) which provided that the application of

the 1949 Act to any position, officer, or employee shall not be

affected by section 1106(a). The Classification Act of 1949 was

repealed by Pub. L. 89-554, Sept. 6, 1966, Sec. 8(a), 80 Stat. 632

(of which section 1 revised and enacted Title 5 into law). Section

5102 of Title 5 contains the applicability provisions of the 1949

Act, and section 5103 of Title 5 authorizes the Office of Personnel

Management to determine the applicability to specific positions and

employees.

-MISC1-

AMENDMENTS

1966 - Subsec. (a). Pub. L. 89-554 repealed subsec. (a) which

provided for the appointment, pay, and term of the Director of

Contract Settlement. This office was abolished previously by Reorg.

Plan No. 1 of 1947.

1949 - Subsec. (d). Act Oct. 28, 1949, substituted

"Classification Act of 1949" for "Classification Act of 1923".

REPEALS

Act Oct. 28, 1949, ch. 782, cited as a credit to this section,

was repealed (subject to a savings clause) by Pub. L. 89-554, Sept.

6, 1966, Sec. 8, 80 Stat. 632, 655.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

Subsec. (a), establishing the Office of Contract Settlement to be

headed by the Director of Contract Settlement and providing for the

appointment of the Director by the President with the advice and

consent of the Senate with compensation of $12,000 per year and a

term of two years, was repealed, and references in the remainder of

this section to "Director" were changed to "Secretary" by section 8

of Ex. Ord. No. 9809 and section 201 of Reorg. Plan No. 1 of 1947.

Reorg. Plan No. 1 of 1947 is set out in the Appendix to Title 5,

Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-End-

-CITE-

41 USC Sec. 105 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 105. Contract Settlement Advisory Board; composition; duties

-STATUTE-

There is created a Contract Settlement Advisory Board, with which

the Administrator of General Services shall advise and consult. The

Board shall be composed of the Administrator of General Services

who shall act as its Chairman, and of the Secretary of the Army,

the Secretary of the Navy, the Secretary of Transportation, the

Secretary of State, the chairman of the board of directors of the

Reconstruction Finance Corporation, Secretary of Commerce, and the

Attorney General or any alternate or representative designated by

any of them. The Administrator of General Services shall request

other Government agencies to participate in the deliberations of

the Board whenever matters specially affecting them are under

consideration.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 5, 58 Stat. 651; Ex. Ord. No. 9630,

Sec. 1, eff. Sept. 27, 1945, 10 F.R. 12245; Ex. Ord. No. 9638, Sec.

1, eff. Oct. 4, 1945, 10 F.R. 12591; Ex. Ord. No. 9665, Sec. 2,

eff. Dec. 27, 1945, 10 F.R. 15365; Ex. Ord. No. 9730, Sec. 1, eff.

May 27, 1946, 11 F.R. 5777; Ex. Ord. No. 9809, Sec. 8, eff. Dec.

12, 1946, 11 F.R. 14281; Ex. Ord. No. 9841, Secs. 101, 203, eff.

Apr. 23, 1947, 12 F.R. 2645; 1947 Reorg. Plan No. 1, Sec. 201, eff.

July 1, 1947, 12 F.R. 4534, 61 Stat. 951; July 26, 1947, ch. 343,

title II, Sec. 205(a), 61 Stat. 501; June 30, 1949, ch. 288, title

I, Sec. 102(b), 63 Stat. 380; Pub. L. 97-31, Sec. 12(17), Aug. 6,

1981, 95 Stat. 154.)

-MISC1-

AMENDMENTS

1981 - Pub. L. 97-31 substituted "Secretary of Transportation"

for "Chairman of the Maritime Commission".

-CHANGE-

CHANGE OF NAME

Department of War designated Department of the Army and title of

Secretary of War changed to Secretary of the Army by section 205(a)

of act July 26, 1947, ch. 343, title II, 61 Stat. 501. Section

205(a) of act July 26, 1947, was repealed by section 53 of act Aug.

10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956,

enacted "Title 10, Armed Forces" which in sections 3010 to 3013

continued Department of the Army under administrative supervision

of Secretary of the Army.

-TRANS-

TRANSFER OF FUNCTIONS

Contract Settlement Advisory Board and all its property, records,

etc., transferred to General Services Administration, but with the

functions of the Board to be performed by the Board under

conditions and limitations prescribed by law, by section 102(b) of

act June 30, 1949, ch. 288, 63 Stat. 380, which was classified to

section 752(b) of former Title 40, Public Buildings, Property, and

Works, and was repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21,

2002, 116 Stat. 1304.

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, and was repealed by Pub. L. 107-217, Sec. 6(b),

Aug. 21, 2002, 116 Stat. 1304.

Contract Settlement Advisory Board transferred to Department of

the Treasury by section 8 of Ex. Ord. No. 9809 and section 201 of

Reorg. Plan No. 1 of 1947. Reorg. Plan No. 1 of 1947 is set out in

the Appendix to Title 5, Government Organization and Employees.

In text of this section, references to "Director" changed to

"Secretary of the Treasury" and phrase "the Secretary of the

Treasury" following reference to Secretary of the Navy was omitted

by section 8 of Ex. Ord. No. 9809, and section 201 of Reorg. Plan

No. 1 of 1947.

Administrator of Foreign Economic Administration changed to

Secretary of State in view of Ex. Ord. No. 9630, as amended by Ex.

Ord. No. 9730.

"Secretary of Commerce" substituted for references to Chairman of

War Production Board and chairman and board of directors of Smaller

War Plants Corporation. War Production Board functions transferred

to Civilian Production Administration, to Office of Temporary

Controls, and then to Secretary of Commerce by Ex. Ord. Nos. 9638,

9809, and 9481, respectively. Functions of chairman and Board of

Directors of Smaller War Plants Corporation transferred to

Secretary of Commerce by Ex. Ord. No. 9665.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

SECRETARY OF THE AIR FORCE

For transfer of certain procurement and related functions and

property, insofar as they pertain to the Air Force, from Secretary

of the Army and Department of the Army, to Secretary of the Air

Force and Department of the Air Force, see Secretary of Defense

Transfer Order No. 6, eff. Jan. 15, 1948.

ABOLITION OF RECONSTRUCTION FINANCE CORPORATION

Reorg. Plan No. 1 of 1957, Sec. 6(a), eff. June 30, 1957, 22 F.R.

4633, 71 Stat. 647, set out in the Appendix to Title 5, Government

Organization and Employees, abolished Reconstruction Finance

Corporation.

-MISC2-

TERMINATION OF ADVISORY BOARDS

Advisory boards in existence on Jan. 5, 1973, to terminate not

later than the expiration of the 2-year period following Jan. 5,

1973, unless, in the case of a board established by the President

or an officer of the Federal Government, such board is renewed by

appropriate action prior to the expiration of such 2-year period,

or in the case of a board established by the Congress, its duration

is otherwise provided by law. See sections 3(2) and 14 of Pub. L.

92-463, Oct. 6, 1972, 86 Stat. 770, 776, set out in the Appendix to

Title 5, Government Organization and Employees.

-End-

-CITE-

41 USC Sec. 106 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 106. Basis for settlement of termination claims

-STATUTE-

(a) Priority to private contractors

It is the policy of the Government, and it shall be the

responsibility of the contracting agencies and the Administrator of

General Services to provide war contractors with speedy and fair

compensation for the termination of any war contract, in accordance

with and subject to the provisions of this chapter, giving priority

to contractors whose facilities are privately owned or privately

operated. Such fair compensation for the termination of

subcontracts shall be based on the same principles as compensation

for the termination of prime contracts.

(b) Establishment of methods and standards

Each contracting agency shall establish methods and standards,

suitable to the conditions of various war contractors, for

determining fair compensation for the termination of war contracts

on the basis of actual, standard, average, or estimated costs, or

of a percentage of the contract price based on the estimated

percentage of completion of work under the terminated contract, or

on any other equitable basis, as it deems appropriate. To the

extent that such methods and standards require accounting, they

shall be adapted, so far as practicable, to the accounting systems

used by war contractors, if consistent with recognized commercial

accounting practice.

(c) Conclusiveness of settlement

Any contracting agency may settle all or any part of any

termination claim under any war contract by agreement with the war

contractor, or by determination of the amount due on the claim or

part thereof without such agreement, or by any combination of these

methods. Where any such settlement is made by agreement, the

settlement shall be final and conclusive, except (1) to the extent

otherwise agreed in the settlement; (2) for fraud; (3) upon

renegotiation to eliminate excessive profits under section 1191 of

Appendix to title 50, unless exempt or exempted under such section;

or (4) by mutual agreement before or after payment. Where any such

settlement is made by determination without agreement, it shall

likewise be final and conclusive, subject to the same exceptions as

if made by agreement, unless the war contractor appeals or brings

suit in accordance with section 113 of this title: Provided, That

no settlement agreement hereunder involving payment to a war

contractor of an amount in excess of $50,000 (or such lesser amount

as the Administrator of General Services may from time to time

determine) shall become binding upon the Government until the

agreement has been reviewed and approved by a settlement review

board of three or more members established by the contracting

agency in the bureau, division, regional or district office, or

other unit of the contracting agency authorized to make such

settlement, or in the event of disapproval by the settlement review

board, unless approved by the head of such bureau, division,

regional or district office, or other unit. Failure of the

settlement review board to act upon any settlement within thirty

days after its submission to the board shall operate as approval by

the board. The sole function of settlement review boards shall be

to determine the over-all reasonableness of proposed settlement

agreements from the point of view of protecting the interests of

the Government. In determining, for purposes of this subsection,

whether review of any settlement agreement is required because of

the amounts involved, no deduction shall be made on account of

credits for property chargeable to the Government or for advance or

partial payments, but amounts payable under such settlement

agreement for completed articles or work at the contract price and

for the discharge of the termination claims of subcontractors shall

be deducted.

(d) Allowable costs

Except as hereinafter provided, the methods and standards

established under subsection (b) of this section for determining

fair compensation for termination claims which are not settled by

agreement shall be designed to compensate the war contractor fairly

for the termination of the war contract, taking into account -

(1) the direct and indirect manufacturing, selling and

distribution, administrative and other costs and expenses

incurred by the war contractor which are reasonably necessary for

the performance of the war contract and properly allocable to the

terminated portion thereof under recognized commercial accounting

practices; and

(2) reasonable costs and expenses of settling termination

claims of subcontractors related to the terminated portion of the

war contract; and

(3) reasonable accounting, legal, clerical, and other costs and

expenses incident to termination and settlement of the terminated

war contract; and

(4) reasonable costs and expenses of removing, preserving,

storing and disposing of termination inventories; and

(5) such allowance for profit on the preparations made and work

done for the terminated portion of the war contract as is

reasonable under the circumstances; and

(6) interest on the termination claim in accordance with

subsection (f) of this section; and

(7) the contract price and all amounts otherwise paid or

payable under the contract.

The following shall not be included as elements of cost:

(i) Losses on other contracts, or from sales or exchanges of

capital assets, fees and other expenses in connection with

reorganization or recapitalization, antitrust or Federal

income-tax litigation, or prosecution of Federal income-tax

claims or other claims against the Government (except as provided

in paragraph (3) of this subsection); losses on investments;

provisions for contingencies; and premiums on life insurance

where the contractor is the beneficiary.

(ii) The expense of conversion of the contractor's facilities

to uses other than the performance of the contract.

(iii) Expenses due to the negligence or willful failure of the

contractor to discontinue with reasonable promptness the

incurring of expenses after the effective date of the termination

notice.

(iv) Costs incurred in respect to facilities, materials, or

services purchased or work done in excess of the reasonable

quantitative requirements of the entire contract.

The failure specifically to mention in this subsection any item

of cost is not intended to imply that it should be allowed or

disallowed. The Administrator of General Services may interpret the

provisions of this subsection and may provide for the inclusion or

exclusion of other costs in accordance with recognized commercial

accounting practice.

Where the small size of claims or the nature of production or

performance or other factors make it impracticable to apply the

principles stated in this subsection to any class of settlements

which are subject to this subsection, the contracting agencies may

establish alternative methods and standards for determining fair

compensation for that class of termination claims. The aggregate

amount of compensation allowed in accordance with this subsection

(excluding amounts allowed under paragraphs (3) and (4) of this

subsection) shall not exceed the total contract price reduced by

the amount of payments otherwise made or to be made under the

contract.

(e) Settlement by agreement

In order to carry out the objectives of this chapter, termination

claims shall be settled by agreement to the maximum extent feasible

and the methods and standards established under subsection (b) of

this section shall be designed to facilitate such settlements. To

the extent that he deems it practicable to do so without impeding

expeditious settlements, the Administrator of General Services

shall require the contracting agencies to take into account the

factors enumerated in subsection (d) of this section in

establishing methods and standards for determining fair

compensation in the settlement of termination claims by agreement.

(f) Interest

Each contracting agency shall allow and pay interest on the

amount due and unpaid from time to time on any termination claim

under a prime contract at the rate of 2 1/2 per centum per annum

for the period beginning thirty days after the date fixed for

termination and ending with the date of final payment, except that

(1) if the prime contractor unreasonably delays the settlement of

his claim, interest shall not accrue for the period of such delay,

(2) if interest for the period after termination on any advance

payment or loan, made or guaranteed by the Government, has been

waived for the benefit of the contractor, the amount of the

interest so waived allocable to the terminated contract or the

terminated part of the contract shall be deducted from the interest

otherwise payable hereunder, and (3) if after delivery of findings

by a contracting agency, the contractor appeals or sues as provided

in section 113 of this title, interest shall not accrue after the

thirtieth day following the delivery of the findings on any amount

allowed by such findings, unless such amount is increased upon such

appeal or suit. In approving, ratifying, authorizing, or making

termination settlements with subcontractors, each contracting

agency shall allow interest on the termination claim of the

subcontractor on the same basis and subject to the same conditions

as are applicable to a prime contractor.

(g) Amendment of contracts

Where any war contract does not provide for or provides against

such fair compensation for its termination, the contracting agency,

either before or after its termination, shall amend such war

contract by agreement with the war contractor, or shall authorize,

approve, or ratify an amendment of such war contract by the parties

thereto, to provide for such fair compensation.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 6, 58 Stat. 652; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-REFTEXT-

REFERENCES IN TEXT

Section 1191 of the Appendix to title 50, referred to in subsec.

(c), was omitted from the Code. See note set out under section 1191

of Title 50, Appendix, War and National Defense.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947. Reorg. Plan

No. 1 of 1947 is set out in the Appendix to Title 5, Government

Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-MISC1-

APPLICATION TO TERMINATED WAR CONTRACTS

For application of this section to war contracts terminated at or

before July 21, 1944, see section 124 of this title.

SETTLEMENT OF CLAIMS FOR WAR CONTRACT LOSSES INCURRED BETWEEN

SEPTEMBER 16, 1940, AND AUGUST 14, 1945

Act Aug. 7, 1946, ch. 864, 60 Stat. 902, as amended by June 25,

1948, ch. 646, Sec. 37, 62 Stat. 992; Aug. 30, 1954, ch. 1076, Sec.

1(2), 68 Stat. 966, provided that if work, supplies, or services

were provided for any department or agency of the Government, under

a contract or subcontract, between Sept. 16, 1940, and Aug. 14,

1945, and a loss was incurred by the contractors or subcontractors

without fault or negligence on their part, then those departments

or agencies were authorized to adjust and settle these losses on a

fair and equitable basis, if claims were filed within six months

after Aug. 7, 1946, and granted claimants dissatisfied with the

settlement the right of judicial review.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 107, 113, 124 of this

title.

-End-

-CITE-

41 USC Sec. 107 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 107. Settlement of subcontractors' claims

-STATUTE-

(a) Conclusiveness of settlement

Where, in connection with the settlement of any termination claim

by a contracting agency, any war contractor makes settlements of

the termination claims of his subcontractors, the contracting

agency shall limit or omit its review of such settlements with

subcontractors to the maximum extent compatible with the public

interest. Any contracting agency (1) may approve, ratify, or

authorize such settlements with subcontractors upon such evidence,

terms, and conditions as it deems proper; (2) shall vary the scope

and intensity of its review of such settlements according to the

reliability of the war contractor, the size, number, and complexity

of such claims, and other relevant factors; and (3) shall authorize

war contractors to make such settlements with subcontractors

without review by the contracting agency, whenever the reliability

of the war contractor, the amount or nature of the claims, or other

reasons appear to the contracting agency to justify such action.

Any such settlement of a subcontract approved, ratified, or

authorized by a contracting agency shall be final and conclusive as

to the amount due to the same extent as a settlement under

subsection (c) of section 106 of this title, and no war contractor

shall be liable to the United States on account of any amounts paid

thereon except for his own fraud.

(b) Supervision of payments to war contractors

Whenever any contracting agency is satisfied of the inability of

a war contractor to meet his obligations it shall exercise

supervision or control over payments to the war contractor on

account of termination claims of subcontractors of such war

contractor to such extent and in such manner as it deems necessary

or desirable for the purpose of assuring the receipt of the benefit

of such payments by the subcontractors.

(c) Group settlements

The Administrator of General Services shall prescribe policies

and methods for the settlement as a group, or otherwise, by any

contracting agency of some or all of the termination claims of a

war contractor under war contracts with one or more (1) bureaus or

divisions within a contracting agency, (2) contracting agencies, or

(3) prime contractors and subcontractors, to the extent he deems

such action necessary or desirable for expeditious and equitable

settlement of such claims. After consulting with the contracting

agencies concerned, the Administrator of General Services may

provide for assigning any war contractor to a contracting agency

for such settlement, and such agency shall have authority to

settle, on behalf of any other contracting agency, some or all of

the termination claims of such war contractor.

(d) Direct settlement by contracting agency

Any contracting agency may settle directly termination claims of

subcontractors to the extent that it deems such action necessary or

desirable for the expeditious and equitable settlement of such

claims. In making such termination settlements any contracting

agency may discharge the claim of the subcontractor by payment or

may purchase such claim, and may agree to assume, or indemnify the

subcontractor against, any claims by any person in connection with

such claim or the termination settlement. Any contracting agency

undertaking to settle the termination claim of any subcontractor

shall deliver to the subcontractor and the war contractor liable to

him written notice stating its acceptance of responsibility for

settling his claim and the conditions applicable thereto, which may

include the release, or assignment to the contracting agency, of

his claim against the war contractor liable to him; upon consent

thereto by the subcontractor, the Government shall become liable

for the settlement of his claims upon the conditions specified in

the notice.

(e) Amount of settlement

Any contracting agency may make settlements with subcontractors

in accordance with any of the provisions of this chapter without

regard to any limitation on the amount payable by the Government to

the prime contractor.

(f) Equitable payments

If any contracting agency determines that in the circumstances of

a particular case equity and good conscience require fair

compensation for the termination of a war contract to be paid to a

subcontractor who has been deprived of and cannot otherwise

reasonably secure such fair compensation, the contracting agency

concerned may pay such compensation to him although such

compensation already has been included and paid as part of a

settlement with another war contractor.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 7, 58 Stat. 654; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947. Reorg. Plan

No. 1 of 1947 is set out in the Appendix to Title 5, Government

Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-MISC1-

APPLICATION TO TERMINATED WAR CONTRACTS

For application of this section to war contracts terminated at or

before July 21, 1944, see section 124 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 124 of this title.

-End-

-CITE-

41 USC Sec. 108 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 108. Interim financing

-STATUTE-

(a) Prime contractors

It is the policy of the Government, and it shall be the

responsibility of the contracting agencies and the Administrator of

General Services, in accordance with and subject to the provisions

of this chapter, to provide war contractors having any termination

claim or claims, pending their settlement, with adequate interim

financing, within thirty days after proper application therefor.

(b) Method of financing; amounts payable

Each contracting agency shall, to the greatest extent it deems

practicable, make available interim financing through loans and

discounts, and commitments and guaranties in connection therewith,

in contemplation of or related to termination of war contracts.

Where interim financing is made by advance payments or partial

payments, it shall, insofar as practicable, consist of the

following:

(1) An amount equal to 100 per centum of the amount payable, at

the contract price, on account of acceptable items completed

prior to the termination date under the terms of the contract, or

completed thereafter with the approval of the contracting agency;

plus

(2) An amount equal to 90 per centum of the cost of raw

materials, purchased parts, supplies, direct labor, and

manufacturing overhead allocable to the terminated portion of the

war contract; plus

(3) A reasonable percentage of other allowable costs, including

administrative overhead, allocable to the terminated portion of

the war contract not included in the foregoing; plus

(4) Such additional amounts, if any, as the contracting agency

deems necessary to provide the war contractor with adequate

interim financing.

(5) In lieu of the costs referred to in clauses (2) and (3) of

this subsection, where a detailed ascertainment of such costs is

not suitable to the conditions of any war contractor and is apt

to cause delay in the obtaining of interim financing by him, that

portion of such interim financing shall be equal to an amount not

greater than 90 per centum of the estimated costs which are

allocable to the terminated part or parts of the war contract or

group of war contracts, and are ascertained in accordance with

such methods and standards as the Administrator of General

Services shall prescribe.

(6) There shall be deducted from the amount of such interim

financing any unliquidated balances of advance and partial

payments theretofore made to such war contractor, which are

allocable to the terminated war contract or the terminated part

of the war contract.

(c) Evidence to support financing

The Administrator of General Services shall prescribe (1) the

types of estimates, certificates, or other evidence to be required

to support such interim financing; (2) the terms and conditions

upon which such interim financing shall be made including the use

of standard forms for agreements with respect to such interim

financing to the extent practicable; (3) the classes of cases in

which such interim financing shall be refused; and (4) such methods

of supervision and control over such interim financing as he deems

necessary or desirable to assure adequate and speedy interim

financing to subcontractors of the war contractor.

(d) Penalty for overstatement of claims

In case of an overstatement by any war contractor of the amount

due on his termination claim or claims in connection with any

interim financing under this chapter, such contractor shall pay to

the United States, as a penalty, an amount equal to 6 per centum of

the amount of the overstatement, but the Administrator of General

Services may suspend or modify any such penalty if in his opinion

the imposition thereof would be inequitable. Any penalty may be

deducted from any amounts due the war contractor upon such

termination claim or claims, or otherwise, or may be collected from

the war contractor by suit. The obligation to pay any penalty

imposed and to repay any interim financing made or assumed by the

United States under this chapter shall constitute a debt due to the

United States within the meaning of section 3713(a) of title 31.

(e) Advance payments as part of termination settlement

Any contracting agency may allow any advance payments, previously

made or authorized by it in connection with the performance of a

war contract, to be used for payments and expenses related to the

termination settlement of such contract, upon such terms and

conditions as it deems necessary or appropriate to protect the

interest of the Government.

(f) Liquidation of loans, etc., prior to final settlement

No interim financing shall be made by any contracting agency

under this chapter unless the terms of such financing provide for

the liquidation by the war contractor of all loans, discounts,

advance payments, or partial payments thereunder not later than the

time of final payment of the amount due on the settlement of the

termination claim or claims of the war contractor involved or such

time thereafter as the contracting agency deems necessary for the

liquidation of such interim financing in an orderly manner.

(g) Settlement of claims; validation of prior financing

Any contracting agency may settle, upon such terms and conditions

as it deems proper, any claim or obligation due by or to the

Government arising from or related to any interim financing made,

acquired, or authorized by it. Any interim financing made,

acquired, or authorized by any contracting agency before July 21,

1944, shall be valid to the extent it would be authorized under the

provisions of this chapter if made after its effective date.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 8, 58 Stat. 655; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-COD-

CODIFICATION

In subsec. (d), "section 3713(a) of title 31" substituted for

"Revised Statutes, section 3466 (31 U.S.C., sec. 191)" on authority

of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the

first section of which enacted Title 31, Money and Finance.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-MISC1-

APPLICATION TO TERMINATED WAR CONTRACTS

For application of this section to war contracts terminated at or

before July 21, 1944, see section 124 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 124 of this title.

-End-

-CITE-

41 USC Sec. 109 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 109. Advance or partial payments to subcontractors; excessive

payments, interest, liability of war contractor

-STATUTE-

(a) Any contracting agency may make advance or partial payments

to any war contractor on account of any termination claim or

claims, and may authorize, approve, or ratify any such advance or

partial payments by any war contractor to his subcontractors, upon

such conditions as it deems necessary to insure compliance with the

provisions of subsection (b) of this section. Each contracting

agency shall make final payments from time to time on partial

settlements or on settlements fixing a minimum amount due before

complete settlement, or as tentative payments before any settlement

of the claim or claims.

(b) Where any such advance or partial payment is made to any war

contractor by any contracting agency or by another war contractor

under this section, except a final payment on a partial settlement,

any amount in excess of the amount finally determined to be due on

the termination claim shall be treated as a loan from the

Government to the war contractor receiving it, and shall be payable

upon demand together with a penalty computed at the rate of 6 per

centum per annum, for the period from the date such excess advance

or partial payment is received to the date on which such excess is

repaid or extinguished. Where the advance or partial payment was

made by a war contractor and authorized, approved, or ratified by

any contracting agency, the war contractor making it shall not be

liable for any such excess payment in the absence of fraud on his

part and shall receive payment or credit from the Government for

the amount of such excess payment.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 9, 58 Stat. 657.)

-MISC1-

APPLICATION TO TERMINATED WAR CONTRACTS

For application of this section to war contracts terminated at or

before July 21, 1944, see section 124 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 124 of this title.

-End-

-CITE-

41 USC Sec. 110 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 110. Guarantee of loans, advances, etc.

-STATUTE-

(a) By contract

Any contracting agency is authorized -

(1) to enter into contracts with any Federal Reserve bank, or

other public or private financing institution, guaranteeing such

financing institution against loss of principal or interest on

loans, discounts, or advances or on commitments in connection

therewith, which such financing institution may make to any war

contractor or to any person who is or has been engaged in

performing any operation deemed by such contracting agency to be

connected with or related to war production, for the purpose of

financing such war contractor or other person in connection with

or in contemplation of the termination of one or more such war

contracts or operations; and

(2) to make, enter into contracts to make, or to participate

with any Government agency, any Federal Reserve bank or public or

private financing institution in making loans, discounts, or

advances, or commitments in connection therewith, for the purpose

of financing any such war contractor or other person in

connection with or in contemplation of the termination of such

war contracts or operations.

(b) By assignment

Any such loan, discount, advance, guaranty, or commitment in

connection therewith may be secured by assignment of, or covenants

to assign, some or all of the rights of such war contractor or

other person in connection with the termination of such war

contracts or operations, or in such other manner as the contracting

agency may prescribe.

(c) Federal Reserve bank as fiscal agent

Subject to such regulations as the Board of Governors of the

Federal Reserve System may prescribe with the approval of the

Administrator of General Services, any Federal Reserve bank is

authorized to act, on behalf of the contracting agencies, as fiscal

agent of the United States in carrying out the purposes of this

chapter.

(d) Application of other laws

This section shall not limit or affect any authority of any

contracting agency, under any other statute, to make loans,

discounts, or advances, or commitments in connection therewith or

guaranties thereof.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 10, 58 Stat. 657; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of 1946 Ex.

Ord. No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out

in the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-MISC1-

APPLICATION TO TERMINATED WAR CONTRACTS

For application of this section to war contracts terminated at or

before July 21, 1944, see section 124 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 124 of this title.

-End-

-CITE-

41 USC Sec. 111 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 111. Termination of contracts

-STATUTE-

(a) Advance notice; prime contracts

In order to facilitate the efficient use of materials, manpower,

and facilities for war and civilian purposes, each contracting

agency -

(1) shall provide its prime contractors with notice of

termination of their prime contracts as far in advance of the

cessation of work thereunder as is feasible and consistent with

the national security without permitting unneeded production or

performance;

(2) shall establish procedures whereby prime contractors shall

provide affected subcontractors with immediate notice of

termination; and

(3) shall permit the continuation of some or all of the work

under a terminated prime contract whenever the agency deems that

such continuation will benefit the Government or is necessary to

avoid substantial injury to the plant or property.

(b) Cessation of work without termination

Whenever a contracting agency hereafter directs a prime

contractor to cease or suspend all or a substantial part of the

work under a prime contract, without terminating the contract,

then, unless the contract provides otherwise, (1) the contracting

agency shall compensate the contractor for reasonable costs and

expenses resulting from such cessation or suspension, and (2) if

the cessation or suspension extends for thirty days or more, the

contractor may elect to treat it as a termination by delivering

written notice of his election so to do to the contracting agency,

at any time before the contracting agency directs the prime

contractor to resume work under the contract.

(c) Authority of Administrator of General Services; classes of

contracts

The Administrator of General Services shall have no authority

under this chapter to regulate or control the classes of contracts

to be terminated by the contracting agencies.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 11, 58 Stat. 658; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-End-

-CITE-

41 USC Sec. 112 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 112. Removal and storage of materials

-STATUTE-

(a) Termination inventory

It is the policy of the Government, upon the termination of any

war contract, to assure the expeditious removal from the plant of

the war contractor of the termination inventory not to be retained

or sold by the war contractor.

(b) Statement on material of inventory

Any war contractor may submit to the contracting agency concerned

or to any other Government agency designated by the Administrator

of General Services, one or more statements showing the materials

which such war contractor claims to be termination inventory under

one or more war contracts and desires to have removed by the

Government. Such statements shall be prepared in such form and

detail, shall be submitted in such manner, through the prime

contractor or otherwise, and shall be supported by such

certificates or other data, as may be prescribed under this

chapter.

(c) Removal and storage by Government agency

Within sixty days after the submission of any such statement by a

war contractor, or such shorter period as may be prescribed under

this chapter, or within such longer period as the war contractor

may agree, the Government agency concerned (1) shall arrange, upon

such terms and conditions as may be agreed, for the storage by the

war contractor on his own premises or elsewhere of all such claimed

termination inventory which the war contractor does not retain or

dispose of, except any part which may be determined not to be

allocable to the terminated war contract or contracts, or (2) shall

remove from the plant or plants of the war contractor all of such

claimed termination inventory not retained, disposed of, or stored

by the war contractor or determined not to be allocable to the

terminated war contract or contracts.

(d) Removal and storage by war contractor

Upon the failure of the Government so to arrange for storage by

the war contractor or to remove any termination inventory within

the period specified under subsection (c) of this section, the war

contractor, subject to regulations prescribed under this chapter,

may remove some or all of such termination inventory from his plant

or plants and may store it on his own premises or elsewhere for the

account and at the risk and expense of the Government, using

reasonable care for its transportation and preservation. If any war

contractor intends so to remove any claimed termination inventory,

he shall deliver to the Government agency concerned written notice

of the date fixed for removal and a statement showing the

quantities and condition of the materials so to be removed,

certified on behalf of the war contractor to have been prepared in

accordance with a concurrent physical inventory of such materials.

Such notice and statement shall be delivered at least twenty days

in advance of the date fixed for removal and may be delivered

before or after the expiration of the period specified under

subsection (c) of this section. If the Government agency fails to

check such materials, at or before the time of their removal by the

war contractor, a certificate of the war contractor specifying the

materials shown on such statement which were so removed, and filed

with the Government agency concerned within thirty days after the

date fixed for removal, shall constitute prima facie evidence

against the United States as to the quantities and condition of the

materials so removed, and the fact of their removal.

(e) Acquisition by Government agency of inventory material;

liability

Notwithstanding any other provisions of law, but subject to

subsection (h) of this section, the contracting agency concerned or

the Administrator of General Services, or any Government agency

designated by him, on behalf of the United States, may, by the

exercise of any contract rights or otherwise, acquire and take

possession of any termination inventory of any war contractor, and

any materials removed by the Government or stored for its account

under subsections (c) and (d) of this section, whether or not such

materials are finally determined not to constitute termination

inventory. With respect to any such materials, the Government shall

be liable to any war contractor concerned only for their return to

such war contractor or for their disposal value at the time of

their removal or for the proceeds realized by the Government from

their disposal, at the election of the Government agency concerned,

unless the Government agency and the war contractor agree or have

agreed on a different basis. Any amount so paid or layable to a war

contractor for materials allocable to a terminated war contract

shall be credited against the termination claim under such contract

but shall not otherwise affect the amount due on the claim, unless

the Government agency concerned and the war contractor agree or

have agreed otherwise. Any materials to which the Administrator of

General Services takes title under this section shall be delivered

for disposal to any appropriate Government agency authorized to

make such disposal.

(f) Postponement or delay of termination settlement

No contracting agency shall postpone or delay any termination

settlement beyond the period specified in subsection (c) of this

section for the purpose of awaiting disposal by the war contractor

or the Government of any termination inventory reported in

accordance with subsection (b) of this section.

(g) Government-owned machinery

Whenever any war contractor no longer requires, for the

performance of any war contract, any Government-owned machinery,

tools, or equipment installed in his plant for the performance of

one or more war contracts, the Government agency concerned, upon

written demand by the war contractor, and within sixty days after

such demand or such other period as may be prescribed under this

chapter, and upon such conditions as may be so prescribed, shall

remove or provide for the removal of such machinery, tools, or

equipment from such plant, unless the Government agency concerned

and the war contractor, by facilities contract or otherwise, have

made or make other provisions for the retention, storage,

maintenance, or disposition of such machinery, tools or equipment.

The Government agency concerned may waive or release on behalf of

the United States any obligation of the war contractor with respect

to such machinery, tools, or equipment upon such terms and

conditions as the agency deems appropriate. Upon the failure of the

Government so to remove or provide for removal of any such

machinery, tools, or equipment, the war contractor, subject to

regulations prescribed under this chapter, may remove all or part

of such machinery, tools, or equipment from his plant and may store

it on his own premises or elsewhere, for the account and at the

risk and expense of the Government, using reasonable care for its

transportation and preservation.

(h) Limitation on Government acquisition of inventories

Nothing in this chapter shall limit or affect the authority of

the Department of the Army, Department of the Air Force, Navy

Department, or the Department of Transportation, respectively, to

take over any termination inventories and to retain them for their

use for any purpose or to dispose of such termination inventories

for the purpose of war production, or to authorize any war

contractor to retain or dispose of such termination inventories for

the purpose of war production.

(i) Removal and storage by war contractor at own risk

Nothing in this section shall be construed to prevent the removal

and storage of any termination inventory by any war contractor, at

his own risk, at any time after termination of any war contract to

which it is allocable.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 12, 58 Stat. 658; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; July 26,

1947, ch. 343, title II, Secs. 205(a), 207(a), (f), 61 Stat.

501-503; June 30, 1949, ch. 288, title I, Sec. 102(b), 63 Stat.

380; Pub. L. 97-31, Sec. 12(18), Aug. 6, 1981, 95 Stat. 154.)

-MISC1-

AMENDMENTS

1981 - Subsec. (h). Pub. L. 97-31 substituted "the Department of

Transportation" for "Maritime Commission".

-CHANGE-

CHANGE OF NAME

Department of the Air Force inserted under the authority of

section 207(a), (f) of act July 26, 1947, ch. 343, title II, 61

Stat. 502, 503, and Secretary of Defense Transfer Order No. 6, eff.

Jan. 15, 1948. Department of War designated Department of the Army

and title of Secretary of War changed to Secretary of the Army by

section 205(a) of such act July 26, 1947. Sections 205(a) and

207(a), (f) of act July 26, 1947, were repealed by section 53 of

act Aug. 10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug.

10, 1956, enacted "Title 10, Armed Forces", which in sections 3010

to 3013 and 8010 to 8013 continued Departments of the Army and Air

Force under administrative supervision of Secretary of the Army and

Secretary of the Air Force, respectively.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-MISC2-

APPLICATION TO TERMINATED WAR CONTRACTS

For application of subsecs. (b) to (e) of this section to war

contracts terminated at or before July 21, 1944, see section 124 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 124 of this title.

-End-

-CITE-

41 USC Sec. 113 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 113. Appeals

-STATUTE-

(a) Failure to settle claims by agreement; preparation of findings;

notice to war contractor

Whenever the contracting agency responsible for settling any

termination claim has not settled the claim by agreement or has so

settled only a part of the claim, (1) the contracting agency at any

time may determine the amount due on such claim or such unsettled

part, and prepare written findings indicating the basis of the

determination, and deliver a copy of such findings to the war

contractor, or (2) if the termination claim has been submitted in

the manner and substantially the form prescribed under this

chapter, the contracting agency, upon written demand by the war

contractor for such findings, shall determine the amount due on the

claim or unsettled part and prepare and deliver such findings to

the war contractor within ninety days after the receipt by the

agency of such demand. In preparing such findings, the contracting

agency may require the war contractor to furnish such information

and to submit to such audits as may be reasonably necessary for

that purpose. Within thirty days after the delivery of any such

findings, the contracting agency shall pay to the war contractor at

least 90 per centum of the amount thereby determined to be due,

after deducting the amount of any outstanding interim financing

applicable thereto.

(b) Rights of war contractor

Whenever any war contractor is aggrieved by the findings of a

contracting agency on his claim or part thereof or by its failure

to make such findings in accordance with subsection (a) of this

section, he may bring suit against the United States for such claim

or such part thereof, in the United States Court of Federal Claims

or in a United States district court, in accordance with sections

1346, 2401, and 2402 of title 28, except that, if the contracting

agency is the Reconstruction Finance Corporation, or any

corporation organized pursuant to the Reconstruction Finance

Corporation Act, or any corporation owned or controlled by the

United States, the suit shall be brought against such corporation

in any court of competent jurisdiction in accordance with existing

law.

(c) Procedure

Any proceeding under subsection (b) of this section shall be

governed by the following conditions:

(1) When any contracting agency provides a procedure within the

agency for protest against such findings or for other appeal

therefrom by the war contractor, the war contractor, before

proceeding under subsection (b) of this section, (i) in his

discretion may resort to such procedure within the time specified

in his contract or, if no time is specified, within thirty days

after the delivery to him of the findings; and (ii) shall resort

to such procedure for protest or other appeal to the extent

required by the Administrator of General Services, but failure of

the contracting agency to act on any such required protest or

appeal within thirty days shall operate as a refusal by the

agency to modify its findings. Any revision of the findings by

the contracting agency, upon protest or appeal within the agency,

shall be treated as the findings of the agency for the purpose of

appeal or suit under subsection (b) of this section.

Notwithstanding any contrary provision in any war contract, no

war contractor shall be required to protest or appeal from such

findings within the contracting agency except in accordance with

this paragraph.

(2) A war contractor may initiate proceedings in accordance

with subsection (b) of this section (i) within ninety days after

delivery to him of the findings by the contracting agency, or

(ii) in case of protests or appeal within the agency, within

ninety days after the determination of such protest or appeal, or

(iii) in case of failure to deliver such findings, within one

year after his demand therefor. If he does not initiate such

proceedings within the time specified, he shall be precluded

thereafter from initiating any proceedings in accordance with

subsection (b) of this section, and the findings of the

contracting agency shall be final and conclusive, or if no

findings were made, he shall be deemed to have waived such

termination claim.

(3) Notwithstanding any contrary provision in any war contract,

the court shall not be bound by the findings of the contracting

agency, but shall treat such findings as prima facie correct, and

the burden shall be on the war contractor to establish that the

amount due on his claim or part thereof exceeds the amount

allowed by the findings of the contracting agency. Whenever the

court finds that the war contractor failed to negotiate in good

faith with the contracting agency for the settlement of his claim

or part thereof before appeal or suit thereon, or failed to

furnish to the agency any information reasonably requested by it

regarding his termination claim or part thereof, or failed to

prosecute diligently any protest or appeal required to be taken

under subsection (c)(1)(ii) of this section, the court (i) may

refuse to receive in evidence any information not submitted to

the contracting agency; (ii) may deny interest on the claim or

part thereof for such period as it deems proper; or (iii) may

remand the case to the contracting agency for further proceedings

upon such terms as the court may prescribe. Unless the case is

remanded, the court shall enter the appropriate award or judgment

on the basis of the law and facts, and may increase or decrease

the amount allowed by the findings of the contracting agency.

(4) Any such proceedings shall not affect the authority of the

contracting agency concerned to make a settlement of the

termination claim, or any part thereof, by agreement with the war

contractor at any time before such proceedings are concluded.

(d) Omitted

(e) Arbitration

The contracting agency responsible for settling any claim and the

war contractor asserting the claim, by agreement, may submit all or

any part of the termination claim to arbitration, without regard to

the amount in dispute. Such arbitration proceedings shall be

governed by the provisions of United States Arbitration Act to the

same extent as if authorized by an effective agreement in writing

between the Government and the war contractor. Any such arbitration

award shall be final and conclusive upon the United States to the

same extent as a settlement under subsection (c) of section 106 of

this title, but shall not be subject to approval by any settlement

review board.

(f) Conclusiveness of decisions

Whenever any dispute exists between any war contractor and a

subcontractor regarding any termination claim, either of them, by

agreement with the other, may submit the dispute to a contracting

agency for mediation or arbitration whenever authorized by the

agency or required by the Administrator of General Services.

Any award or decision in such proceedings shall be final and

conclusive as to the parties so submitting any such dispute and

shall not be questioned by the United States in settling any

related claim, in the absence of fraud or collusion.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 13, 58 Stat. 660; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380; July 14, 1952,

ch. 739, 66 Stat. 627; Pub. L. 97-164, title I, Sec. 160(a)(14),

Apr. 2, 1982, 96 Stat. 48; Pub. L. 102-572, title IX, Sec.

902(b)(1), Oct. 29, 1992, 106 Stat. 4516.)

-REFTEXT-

REFERENCES IN TEXT

The Reconstruction Finance Corporation Act, referred to in

subsec. (b), is act Jan. 22, 1932, ch. 8, 47 Stat. 5, as amended,

which was classified to chapter 14 (Sec. 601 et seq.) of Title 15,

Commerce and Trade, and has been eliminated from the Code. For

complete classification of this Act prior to its elimination from

the Code, see Tables.

United States Arbitration Act, referred to in subsec. (e), is

classified generally to Title 9, Arbitration.

-COD-

CODIFICATION

In subsec. (b), "sections 1346, 2401, and 2402 of title 28"

substituted for "subsection (20) of section 41 of title 28" on

authority of act June 25, 1948, ch. 646, 62 Stat. 869, the first

section of which enacted Title 28, Judiciary and Judicial

Procedure.

Subsec. (d), which provided for appointment and duties of an

Appeal Board, was omitted on authority of act July 14, 1952, ch.

739, 66 Stat. 627, set out as a note below, which abolished the

Appeal Board and terminated all appeals, effective nine months

after July 14, 1952. References in other subsections of this

section to the Appeal Board were omitted in view of act July 14,

1952. As a result of these omissions, cl. (1) of subsec. (b), which

authorized a war contractor to appeal to the Appeal Board, was

deleted, and cl. (2), which permitted suits against the United

States, became a part of subsec. (b) without numerical designation.

-MISC1-

AMENDMENTS

1992 - Subsec. (b). Pub. L. 102-572 substituted "United States

Court of Federal Claims" for "United States Claims Court".

1982 - Subsec. (b). Pub. L. 97-164 substituted "United States

Claims Court" for "Court of Claims".

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section

911 of Pub. L. 102-572, set out as a note under section 171 of

Title 28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-164 effective Oct. 1, 1982, see section

402 of Pub. L. 97-164, set out as a note under section 171 of Title

28, Judiciary and Judicial Procedure.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

ABOLITION OF RECONSTRUCTION FINANCE CORPORATION

Reorg. Plan No. 1 of 1957, Sec. 6(a), eff. June 30, 1957, 22 F.R.

4633, 71 Stat. 647, set out in the Appendix to Title 5, Government

Organization and Employees, abolished Reconstruction Finance

Corporation.

-MISC2-

ABOLITION OF APPEALS BOARD; TERMINATION OF APPEALS; NO FURTHER

APPEALS ACCEPTED; RETURN OF ERRONEOUS FILED APPEALS

Act July 14, 1952, ch. 739, 66 Stat. 627, provided: "That the

Appeal Board established under section 13(d) of the Contract

Settlement Act of 1944 [41 U.S.C. 113(d)] is hereby abolished:

Provided, however, That said abolition shall not become effective

until six months after the enactment of this Act [July 14, 1952] or

such later date, nor more than nine months after the enactment of

this Act, as may be fixed by written order of the Director of

Contract Settlement published in the Federal Register. Such an

order shall be made only in case the Director finds that it is

impracticable for the Appeal Board to dispose of its pending

business before the date fixed for abolition of the Board by this

Act or a previous order of the Director. No such order shall be

made less than thirty days prior to the date theretofore fixed for

abolition of the Appeal Board.

"Sec. 2. (a) Upon the effective date of the abolition of the

Appeal Board all appeals and disputes pending therein shall be

terminated without prejudice and the right of the parties to pursue

such other remedies as are provided by law shall not be affected

thereby.

"(b) In any such terminated appeal, timely initiated in the

Appeal Board, where the period for pursuit of any other remedy

pursuant to section 13(b)(2) of the Contract Settlement Act of 1944

[41 U.S.C. 113(b)(2)] shall have expired or would expire within

sixty days after the effective date of the abolition of the Appeal

Board, the period within which proceedings may be initiated in

accordance with the said section shall be extended to sixty days

after said effective date.

"(c) Effective thirty days after the enactment of this Act [July

14, 1952] no further appeals or submitted disputes shall be

accepted for determination by said Appeal Board.

"(d) Where an attempt is erroneously made to file an appeal with

the Appeal Board after the time limited therefor by section 1(c) of

this Act but prior to the effective date of the abolition of the

Appeal Board, said Board shall forthwith return the papers to the

person therein named as appellant together with a notice in writing

that, pursuant to the terms of section 1(c) of this Act, it can no

longer accept such an appeal. Where such an attempt is made in good

faith and the appeal would, except for the provisions of section

1(c) of this Act, have been timely and the period for pursuit of

any other remedy pursuant to section 13(b)(2) of the Contract

Settlement Act of 1944 [41 U.S.C. 113(b)(2)] expires or would

expire prior to the expiration of sixty days after the receipt of

such notice, the period within which proper proceedings may be

initiated in accordance with said section 13(b)(2) shall be

extended to sixty days after the receipt of such notice."

APPLICATION TO TERMINATED WAR CONTRACTS

For application of this section to war contracts terminated at or

before July 21, 1944, see section 124 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 117, 124 of this

title.

-End-

-CITE-

41 USC Sec. 114 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 114. Court of Federal Claims

-STATUTE-

(a) Appointment of auditors

For the purpose of expediting the adjudication of termination

claims, the United States Court of Federal Claims is authorized to

appoint not more than ten auditors.

(b) Procedure

The United States Court of Federal Claims, on motion of either of

the parties, or on its own motion, may summon any and all persons

with legal capacity to be sued to appear as a party or parties in

any suit or proceeding of any nature whatsoever pending in said

court to assert and defend their interests, if any, in such suits

or proceedings, within such period of time prior to judgment as the

United States Court of Federal Claims shall prescribe. If the name

and address of any such person is known or can be ascertained by

reasonable diligence, and if he resides within the jurisdiction of

the United States, he shall be summoned to appear by personal

service; but if any such person resides outside of the jurisdiction

of the United States, or is unknown, or if for any other good and

sufficient reason appearing to the court personal service cannot be

had, he may be summoned by publication, under such rules as the

court may adopt, together with a copy of the summons mailed by

registered mail to such person's last known address. The United

States Court of Federal Claims may, upon motion of the Attorney

General, in any suit or proceeding where there may be any number of

persons having possible interests therein, notify such persons to

appear to assert and defend such interests. Upon failure so to

appear, any and all claims or interests in claims of any such

person against the United States, in respect of the subject matter

of such suit or proceeding, shall forever be barred and the court

shall have jurisdiction to enter judgment pro confesso upon any

claim or contingent claim asserted on behalf of the United States

against any person who, having been duly served with summons, fails

to respond thereto, to the same extent and with like effect as if

such person had appeared and had admitted the truth of all

allegations made on behalf of the United States. Upon appearance by

any person pursuant to any such summons or notice, the case as to

such person shall, for all purposes, be treated as if an

independent proceeding has been instituted by such person pursuant

to sections 1491, 1496, 1501, 1503, and 2501 of title 28, and as if

such independent proceeding had then been consolidated, for

purposes of trial and determination, with the case in respect of

which the summons or notice was issued, except that the United

States shall not be heard upon any counterclaims, claims for

damages or other demands whatsoever against such person, other than

claims and contingent claims for the recovery of money hereafter

paid by the United States in respect of the transaction or matter

which constitutes the subject matter of such case, unless and until

such person shall assert therein a claim, or an interest in a

claim, against the United States, and the United States Court of

Federal Claims shall have jurisdiction to adjudicate, as between

any and all adverse claimants, their respective several interests

in any matter in suit and to award several judgments in accordance

therewith.

(c) Jurisdiction

The jurisdiction of the United States Court of Federal Claims

shall not be affected by this chapter except to the extent

necessary to give effect to this chapter, and no person shall

recover judgment on any claim, or on any interest in any claim, in

said court which such person would not have had a right to assert

in said court if this section had not been enacted.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 14, 58 Stat. 663; July 28, 1953, ch.

253, Sec. 5, 67 Stat. 226; Pub. L. 97-164, title I, Sec.

160(a)(14), Apr. 2, 1982, 96 Stat. 48; Pub. L. 102-572, title IX,

Sec. 902(b)(1), Oct. 29, 1992, 106 Stat. 4516.)

-COD-

CODIFICATION

In subsec. (b), "sections 1491, 1496, 1501, 1503, and 2501 of

title 28" substituted for "section 250 of title 28" on authority of

act June 25, 1948, ch. 646, 62 Stat. 869, the first section of

which enacted Title 28, Judiciary and Judicial Procedure.

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-572 substituted "United States Court of

Federal Claims" for "United States Claims Court" wherever

appearing.

1982 - Pub. L. 97-164 substituted "United States Claims Court"

for "Court of Claims" wherever appearing.

1953 - Subsec. (a). Act July 28, 1953, struck out provisions

relating to the appointment of a maximum of twenty commissioners

for the purpose of expediting the adjudication of termination

claims.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section

911 of Pub. L. 102-572, set out as a note under section 171 of

Title 28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-164 effective Oct. 1, 1982, see section

402 of Pub. L. 97-164, set out as a note under section 171 of Title

28, Judiciary and Judicial Procedure.

COMMISSIONERS; TERMINATION OF APPOINTING AUTHORITY

Section 4(b) of act July 28, 1953, provided that the authority

contained in subsec. (a) of this section respecting the appointment

of commissioners "is hereby terminated".

SECTION UNAFFECTED BY REVISED TITLE 28

Act June 25, 1948, ch. 646, Sec. 2(d), 62 Stat. 985, provided

that nothing in Title 28, Judiciary and Judicial Procedure, should

be construed as repealing any of the provisions of this section.

-End-

-CITE-

41 USC Sec. 115 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 115. Personal financial liability of contracting officers

-STATUTE-

(a) Whenever any payment is made from Government funds to any war

contractor or other person as an advance, partial or final payment

on any termination claim, or pursuant to any loan, guaranty, or

agreement for the purchase of any loan, or any commitment in

connection therewith, entered into by the Government, no officer or

other Government agent authorizing or approving such payment or

settlement, or certifying the voucher for such payment, or making

the payment in accordance with a duly certified voucher, shall be

personally liable for such payment, in the absence of fraud on his

part. In settling the accounts of any disbursing officer the

General Accounting Office shall allow any such disbursements made

by him notwithstanding any other provisions of law.

(b) For the purpose of making termination settlements or interim

financing any Government agency is authorized to rely upon such

certificates of war contractors as it deems proper and to permit

war contractors and other persons to rely upon such certificates

without financial liability in the absence of fraud on their part.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 15, 58 Stat. 664.)

-End-

-CITE-

41 USC Sec. 116 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 116. Repealed. Pub. L. 104-316, title I, Sec. 121(a), Oct. 19,

1996, 110 Stat. 3836

-MISC1-

Section, acts July 1, 1944, ch. 358, Sec. 16, 58 Stat. 664; Ex.

Ord. No. 9809, Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947

Reorg. Plan No. 1, Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61

Stat. 951; June 30, 1949, ch. 288, title I, Sec. 102(b), 63 Stat.

380, related to functions and jurisdiction of General Accounting

Office in reviewing final settlements made by contracting agency,

in certifying settlements suspected of being fraudulent to

Department of Justice, Administrator of General Services, and

contracting agency, and in reporting on efficacy of settlement

methods and procedures to Congress.

-End-

-CITE-

41 USC Sec. 117 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 117. Defective, informal, and quasi contracts

-STATUTE-

(a) Lack of formalized contract

Where any person has arranged to furnish or furnished to a

contracting agency or to a war contractor any materials, services,

or facilities related to the prosecution of the war, without a

formal contract, relying in good faith upon the apparent authority

of an officer or agent of a contracting agency, written or oral

instructions, or any other request to proceed from a contracting

agency, the contracting agency shall pay such person fair

compensation therefor.

(b) Technical defects or omissions

Whenever any formal or technical defect or omission in any prime

contract, or in any grant of authority to an officer or agent of a

contracting agency who ordered any materials, services, and

facilities might invalidate the contract or commitment, the

contracting agency (1) shall not take advantage of such defect or

omission; (2) shall amend, confirm, or ratify such contract or

commitment without consideration in order to cure such defect or

omission; and (3) shall make a fair settlement of any obligation

thereby created or incurred by such agency, whether expressed or

implied, in fact or in law, or in the nature of an implied or quasi

contract.

(c) Failure to settle

Where a contracting agency fails to settle by agreement any claim

asserted under this section, the dispute shall be subject to the

provisions of section 113 of this title.

(d) Formalization of obligations; termination date for filing

claims

The Administrator of General Services shall require each

contracting agency to formalize all such obligations and

commitments within such period as the Administrator of General

Services deems appropriate. No person shall be entitled to recover

compensation, to receive a settlement of any alleged obligation, or

to obtain the benefit of any amendment, confirmation, ratification,

or formalization of any alleged contract or commitment under the

provisions of subsections (a), (b), (c), or (d) of this section,

unless such person shall, on or before one hundred and eighty days

after June 28, 1954, have filed a claim therefor with the

contracting agency.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 17, 58 Stat. 665; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan. No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380; June 28, 1954,

ch. 403, Sec. 1, 68 Stat. 300.)

-MISC1-

AMENDMENTS

1954 - Subsec. (d). Act June 28, 1954, inserted sentence

providing a termination date for filing claims.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-MISC2-

NONACCRUAL OF LIABILITY

Section 2 of act June 28, 1954, provided that no liability should

accrue by reason of the enactment of section 1 of that act

[amending this section] which would not otherwise have accrued.

-End-

-CITE-

41 USC Sec. 118 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 118. Administration

-STATUTE-

(a) Records and forms

The Administrator of General Services shall establish policies

for such supervision and review within the contracting agencies of

termination settlements and interim financing as he deems necessary

and appropriate to prevent and detect fraud and to assure

uniformity in administration and to provide for expeditious

settlements. For this purpose he shall prescribe such records to be

prepared by the contracting agencies and by war contractors as he

deems necessary in connection with such settlements and interim

financing. He shall seek to reduce the amount of record keeping,

reporting, and accounting in connection with the settlement of

termination claims and interim financing to the minimum compatible

with the reasonable protection of the public interest. Each

contracting agency shall prescribe forms for use by war contractors

in connection with termination settlements and interim financing to

the extent it deems necessary and feasible.

(b) Repealed. Oct. 31, 1951, ch. 654, Sec. 1(111), 65 Stat. 705

(c) Advance notice on cut-backs

The Administrator of General Services, by regulation, shall

provide for making available to any interested Government agency

such advance notice and other information on cut-backs in war

production resulting from terminations or failures to renew or

extend war contracts, as he deems necessary and appropriate.

(d) Investigations

The Administrator of General Services shall make such

investigations as he deems necessary or desirable in connection

with termination settlements and interim financing. For this

purpose he may utilize the facilities of any existing agencies and

if he determines that the facilities of existing agencies are

inadequate, he may establish a unit in the General Services

Administration to supplement and facilitate the work of existing

agencies. He shall report to the Department of Justice any

information received by him indicating any fraudulent practices,

for appropriate action.

(e) Certification of fraudulent settlements to Department of

Justice

Whenever any contracting agency or the Administrator of General

Services believes that any settlement was induced by fraud, the

agency or Administrator of General Services shall report the facts

to the Department of Justice. Thereupon, (1) the Department of

Justice shall make an investigation to determine whether such

settlement was induced by fraud, and (2) until the Department of

Justice notifies the contracting agency that in its opinion the

facts do not support the belief that the settlement was induced by

fraud, the contracting agency, by set-off or otherwise, may

withhold, from amounts owing to the war contractor by the United

States under such settlement or otherwise, the amount of the

settlement, or the portion thereof, which, in its opinion, was

affected by the fraud. In any such case the Department of Justice

shall take such action as it deems appropriate to recover payments

made to such war contractor.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 18, 58 Stat. 666; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380; Oct. 31, 1951,

ch. 654, Sec. 1(111), 65 Stat. 705; Pub. L. 104-316, title I, Sec.

121(b), Oct. 19, 1996, 110 Stat. 3836.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-316, in second sentence, struck

out "(1)" after "he shall prescribe" and struck out "; and (2) the

records in connection therewith to be transmitted to the General

Accounting Office" before period at end.

1951 - Subsec. (b). Act Oct. 31, 1951, struck out provisions

which related to preparation of information and reports regarding

termination of war contracts, settlements of termination claims,

interim financing, etc.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Department of the Treasury" substituted for "Office of Contract

Settlement" in subsec. (d) and references to "Director" changed to

"Secretary" throughout this section by section 8 of Ex. Ord. No.

9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in the

Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-End-

-CITE-

41 USC Sec. 119 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 119. Fraudulent claims, vouchers, statements, etc.;

jurisdiction

-STATUTE-

Every person who makes or causes to be made, or presents or

causes to be presented to any officer, agent, or employee of any

Government agency any claim, bill, receipt, voucher, statement,

account, certificate, affidavit, or deposition, knowing the same to

be false, fraudulent, or fictitious or knowing the same to contain

or to be based on any false, fraudulent, or fictitious statement or

entry, or who shall cover up or conceal any material fact, or who

shall use or engage in any other fraudulent trick, scheme, or

device, for the purpose of securing or obtaining, or aiding to

secure or obtain, for any person any benefit, payment,

compensation, allowance, loan, advance, or emolument from the

United States or any Government agency in connection with the

termination, cancelation, settlement, payment, negotiation,

renegotiation, performance, procurement, or award of a contract

with the United States or with any other person, and every person

who enters into an agreement, combination, or conspiracy so to do,

(1) shall pay to the United States an amount equal to 25 per centum

of any amount thereby sought to be wrongfully secured or obtained

but not actually received, and (2) shall forfeit and refund any

such benefit, payment, compensation, allowance, loan, advance, and

emolument received as a result thereof and (3) shall in addition

pay to the United States the sum of $2,000 for each such act, and

double the amount of any damage which the United States may have

sustained by reason thereof, together with the costs of suit.

The several district courts of the United States, the several

district courts of the Territories of the United States, within

whose jurisdictional limits the person, or persons, doing or

committing such act, or any one of them, resides or shall be found,

shall, wheresoever such act may have been done or committed, have

full power and jurisdiction to hear, try, and determine such suit,

and such person or persons as are not inhabitants of or found

within the district in which suit is brought may be brought in by

order of the court to be served personally or by publication or in

such other reasonable manner as the court may direct.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 19(a), (c)-(e), 58 Stat. 667; June 25,

1948, ch. 645, Sec. 21, 62 Stat. 862.)

-COD-

CODIFICATION

As originally enacted, the second undesignated paragraph of this

section contained the words, ", the District of Columbia" after

"The several district courts of the United States". The words

"District of Columbia" have been deleted entirely as superfluous in

view of section 132(a) of Title 28, Judiciary and Judicial

Procedure, which states that "There shall be in each judicial

district a district court which shall be a court of record known as

the United States District Court for the district", and section 88

of Title 28 which states that "the District of Columbia constitutes

one judicial district".

Section was comprised of subsecs. (a) and (c) to (e) of section

19 of act July 1, 1944. Subsec. (b) of section 19 was classified to

section 590a of Title 18, Criminal Code and Criminal Procedure,

prior to the general revision and enactment of Title 18, Crimes and

Criminal Procedure, by act June 25, 1948, ch. 645, 62 Stat. 683.

Subsecs. (a), (d), and (e) of section 19 were repealed by act June

25, 1948, leaving only subsec. (c) of section 19, which comprises

this section. Subject matter of former subsecs. (a), (d), and (e)

of section 19 is covered by sections 201, 287, 443, and 1001 of

Title 18.

-MISC1-

AMENDMENTS

1948 - Act June 25, 1948, repealed first, second, fifth, and

sixth undesignated pars. See Codification note above.

EFFECTIVE DATE OF 1948 REPEAL

Amendment by act June 25, 1948, effective Sept. 1, 1948, see

section 20 of that act.

-End-

-CITE-

41 USC Sec. 120 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 120. Powers and duties of contracting agencies

-STATUTE-

(a) Limitation

Each contracting agency shall have authority, notwithstanding any

provisions of law other than contained in this chapter, (1) to make

any contract necessary and appropriate to carry out the provisions

of this chapter; (2) to amend by agreement any existing contract,

either before or after notice of its termination, on such terms and

to such extent as it deems necessary and appropriate to carry out

the provisions of this chapter; and (3) in settling any termination

claim, to agree to assume, or indemnify the war contractor against,

any claims by any person in connection with such termination claims

or settlement. This subsection shall not limit or affect in any way

any authority of any contracting agency under the First War Powers

Act, 1941, or under any other statute.

(b) Evidence required; conclusiveness of determinations

Any contracting agency may prescribe the amount and kind of

evidence required to identify any person as a war contractor, or

any contract, agreement, or purchase order as a war contract for

any of the purposes of this chapter. Any determination so made that

any person is a war contractor, or that any contract, agreement, or

purchase order is a war contract, shall be final and conclusive for

any of the purposes of this chapter.

(c) Appropriations

There are authorized to be appropriated such sums as may be

necessary for administering the provisions of this chapter.

(d) Validation of prior settlements

All policies and procedures relating to termination of war

contracts, termination settlements, and interim financing,

prescribed by the Secretary of the Treasury or any contracting

agency, in effect on July 21, 1944, and not inconsistent with this

chapter, shall remain in full force and effect unless and until

superseded by the Administrator of General Services in accordance

with this chapter, or by regulations of the contracting agency not

inconsistent with this chapter or the policies prescribed by the

Administrator of General Services.

(e) Impairment of contract

Nothing in this chapter shall be deemed to impair or modify any

war contract or any term or provision of any war contract or any

assignment of any claim under a war contract, without the consent

of the parties thereto, if the war contract, or the term,

provision, or assignment thereof, is otherwise valid.

(f) Aid to war contractors

Any contracting agency may authorize or direct its officers and

employees, as a part of their official duties, to advise, aid, and

assist war contractors in preparing and presenting termination

claims, in obtaining interim financing, and in related matters, to

such extent as it deems desirable. Such advice, aid, or assistance

shall not constitute a violation of section 205 of title 18 or of

any other law, provided the officer or employee does not receive

therefor benefit or compensation of any kind, directly or

indirectly, from any war contractor.

-SOURCE-

(July 1, 1944, ch. 358 Sec. 20, 58 Stat. 668; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; June 30, 1947, ch. 166,

title II, Sec. 207, 61 Stat. 209; 1947 Reorg. Plan No. 1, Sec. 201,

eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30, 1949, ch.

288, title I, Sec. 102(b), 63 Stat. 380.)

-REFTEXT-

REFERENCES IN TEXT

The First War Powers Act, 1941, referred to in subsec. (a), is

act Dec. 18, 1941, ch. 593, 55 Stat. 838, which enacted sections 32

to 37 and 601 to 605, 611, and 616 to 622 of Title 50, Appendix,

War and National Defense, and amended section 95a of Title 12,

Banks and Banking, and section 5 of Title 50, Appendix. The First

War Powers Act, 1941, was substantially repealed, with certain

exceptions, by Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat.

651. For complete classification of this Act to the Code, see

Tables.

-COD-

CODIFICATION

In subsec. (f), "section 205 of title 18" substituted for

"section 109 of the Criminal Code (18 U.S.C. 198)" on authority of

act June 25, 1948, ch. 645, 62 Stat. 683, the first section of

which enacted Title 18, Crimes and Criminal Procedure, and on

authority of Pub. L. 87-849, Sec. 2, Oct. 23, 1962, 76 Stat. 1126.

Subsec. (g), relating to the duties of Smaller War Plants

Corporation, omitted on authority of section 207 of act June 30,

1947, which provided: "The liquidation of the affairs of the

Smaller War Plants Corporation administered by the Reconstruction

Finance Corporation pursuant to Executive Order 9665 shall be

carried out by the Reconstruction Finance Corporation,

notwithstanding the provisions of the last paragraph of section 5

of the First War Powers Act, 1941 [section 605 of Title 50,

Appendix, War and National Defense]. The Smaller War Plants

Corporation is hereby abolished."

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-End-

-CITE-

41 USC Sec. 121 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 121. Administrator of General Services; additional duties

-STATUTE-

In addition to his other functions under this chapter, the

Administrator of General Services shall -

(a) promote the training of personnel for termination

settlement and interim financing by contracting agencies, war

contractors, and financing institutions;

(b) Omitted

(c) promote decentralization of the administration of

termination settlements and interim financing by fostering

delegation of authority within contracting agencies and to war

contractors, to the extent he deems necessary and feasible; and

(d) consult with war contractors through advisory committees or

such other methods as he deems appropriate.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 21, 58 Stat. 669; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; June 30, 1947, ch. 166,

title II, Sec. 207, 61 Stat. 209; 1947 Reorg. Plan No. 1, Sec. 201,

eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30, 1949, ch.

288, title I, Sec. 102(b), 63 Stat. 380.)

-COD-

CODIFICATION

Subsec. (b), providing for Administrators' collaboration with

Smaller War Plants Corporation in protecting interests of smaller

war contractors, was omitted on authority of section 207 of act

June 30, 1947, which provided: "The liquidation of the affairs of

the Smaller War Plants Corporation administered by the

Reconstruction Finance Corporation pursuant to Executive Order 9665

shall be carried out by the Reconstruction Finance Corporation,

notwithstanding the provisions of the last paragraph of section 5

of the First War Powers Act, 1941 [section 605 of Title 50,

Appendix, War and National Defense]. The Smaller War Plants

Corporation is hereby abolished."

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-MISC1-

TERMINATION OF ADVISORY COMMITTEES

Advisory committees in existence on Jan. 5, 1973, to terminate

not later than the expiration of the 2-year period following Jan.

5, 1973, unless, in the case of a committee established by the

President or an officer of the Federal Government, such committee

is renewed by appropriate action prior to the expiration of such

2-year period, or in the case of a committee established by the

Congress, its duration is otherwise provided by law. Advisory

committees established after Jan. 5, 1973, to terminate not later

than the expiration of the 2-year period beginning on the date of

their establishment, unless, in the case of a committee established

by the President or an officer of the Federal Government, such

committee is renewed by appropriate action prior to the expiration

of such 2-year period, or in the case of a committee established by

the Congress, its duration is otherwise provided by law. See

section 14 of Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 776, set out

in the Appendix to Title 5, Government Organization and Employees.

-End-

-CITE-

41 USC Sec. 122 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 122. Use of appropriated funds

-STATUTE-

Any contracting agency is authorized -

(a) to use for interim financing, the payment of claims, and

for any other purposes authorized in this chapter any funds which

have heretofore been appropriated or allocated or which may

hereafter be appropriated or allocated to it, or which are or may

become available to it, for such purposes or for the purposes of

war production or war procurement;

(b) to use any such funds appropriated, allocated, or available

to it for expenditures for or in behalf of any other contracting

agency for the purposes authorized in this chapter; and

(c) to determine by agreement, joint estimate, or any other

method authorized by the Administrator of General Services, the

part of any expenditure made pursuant to subsection (b) of this

section to be paid by each contracting agency concerned and to

make transfers of funds between such contracting agencies

accordingly. Transfers of funds between appropriations carried

upon the books of the Treasury shall be made by the Administrator

of General Services in accordance with joint requests of the

contracting agencies involved.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 22, 58 Stat. 670; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1949, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-End-

-CITE-

41 USC Sec. 123 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 123. Delegation of authority by Administrator of General

Services

-STATUTE-

(a) Officers and agencies of General Service Administration and

other governmental agencies

The Administrator of General Services may delegate any authority

and discretion conferred upon him by this chapter to such officers

and agencies of the General Services Administration as he may

designate, and may delegate such authority and discretion, upon

such terms and conditions as he may prescribe, to the head of any

Government agency to the extent necessary to the handling and

solution of problems peculiar to that agency.

(b) Authority delegated to other governmental agencies

The head of any Government agency may delegate any authority and

discretion conferred upon him or his agency by or pursuant to this

chapter to any officer, agent, or employee of such agency or to any

other Government agency, and may authorize successive redelegations

of such authority and discretion.

(c) Joint exercise of delegated authority

Any two or more Government agencies may exercise jointly any

authority and discretion conferred upon each of them individually

by or pursuant to this chapter.

(d) Application to other laws

Nothing in this chapter shall prevent the Administrator of

General Services from exercising any authority conferred upon him

by any other statute.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 23, 58 Stat. 670; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-COD-

CODIFICATION

In subsec. (a), the phrase "such officers and agencies of the

General Services Administration as he may designate" substituted

for "any Deputy Director" on authority of section 102(b) of act

June 30, 1949, ch. 288, 63 Stat. 380, which was classified to

section 752(b) of former Title 40, Public Buildings, Property, and

Works, and was repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21,

2002, 116 Stat. 1304.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-End-

-CITE-

41 USC Sec. 124 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 124. Effective date; applicability to lend lease contracts

-STATUTE-

(a) This chapter shall become effective twenty days after July 1,

1944. With the exception of the provisions of paragraphs (b), (c),

(d), and (e) of section 112 of this title, and sections 106 to 110,

and 113 of this title, this chapter shall be applicable in the case

of any terminated war contract which has been finally settled at or

before the effective date of this chapter.

(b) Nothing in this chapter shall limit or affect any authority

conferred by sections 411 to 419 of title 22, or Acts supplemental

thereto.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 24, 58 Stat. 670.)

-REFTEXT-

REFERENCES IN TEXT

Sections 411 to 419 of title 22, referred to in subsec. (b), have

been omitted from the Code.

-End-

-CITE-

41 USC Sec. 125 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 2 - TERMINATION OF WAR CONTRACTS

-HEAD-

Sec. 125. Exemption of certain contracts outside continental United

States or in Alaska

-STATUTE-

Subject to policies prescribed by the Administrator of General

Services, any contracting agency may exempt from some or all of the

provisions of this chapter (a) any war contract made or to be

performed outside the continental limits of the United States or in

Alaska, or (b) any termination inventory situated outside of the

continental limits of the United States or in Alaska, or (c) any

modification of a war contract pursuant to its terms for the

purpose of changing plans or specifications applicable to the work

without substantially reducing its extent.

-SOURCE-

(July 1, 1944, ch. 358, Sec. 25, 58 Stat. 670; Ex. Ord. No. 9809,

Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,

Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30,

1949, ch. 288, title I, Sec. 102(b), 63 Stat. 380.)

-TRANS-

TRANSFER OF FUNCTIONS

Functions of Secretary of the Treasury transferred to

Administrator of General Services by section 102(b) of act June 30,

1949, ch. 288, 63 Stat. 380, which was classified to section 752(b)

of former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 107-217, Sec. 6(b), Aug. 21, 2002, 116 Stat.

1304.

"Secretary" substituted for "Director" by section 8 of Ex. Ord.

No. 9809 and section 201 of Reorg. Plan No. 1 of 1947, set out in

the Appendix to Title 5, Government Organization and Employees.

EFFECTIVE DATE OF TRANSFER OF FUNCTIONS

Transfer of functions by act June 30, 1949, effective July 1,

1949, see section 605, formerly section 505, of act June 30, 1949,

ch. 288, 63 Stat. 403; renumbered by act Sept. 5, 1950, ch. 849,

Sec. 6(a), (b), 64 Stat. 583.

-End-