41 U.S.C. § 6504 — Three-year prohibition on new contracts

Page 168 TITLE 41—PUBLIC CONTRACTS § 6504 in the performance of the contract, including any underpayments arising from deductions, rebates, or refunds. (c) CANCELLATION AND ALTERNATIVE COMPLE- TION.—In addition to the Federal Government being entitled to damages described in sub- section (b), the agency of the United States that made the contract may cancel the contract and make open-market purchases or make other contracts for the completion of the original con- tract, charging any additional cost to the origi- nal contractor. (d) RECOVERY OF AMOUNTS DUE.—An amount due the Federal Government because of a breach or violation described in subsection (a) may be withheld from any amounts owed the contractor under any contract under section 6502 of this title or may be recovered in a suit brought by the Attorney General. (e) EMPLOYEE REIMBURSEMENT FOR UNDER- PAYMENT OF WAGES.—An amount withheld or re- covered under subsection (d) that is based on an underpayment of wages as described in sub- section (b)(2) shall be held in a special deposit account. On order of the Secretary, the amount shall be paid directly to the underpaid employee on whose account the amount was withheld or recovered. However, an employee’s claim for payment under this subsection may be enter- tained only if made within one year from the date of actual notice to the contractor of the withholding or recovery. (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3808.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6503 ............ 41:36. June 30, 1936, ch. 881, § 2, 49 Stat. 2037. In subsection (b)(1), the words ‘‘individual under 16 years of age’’ are substituted for ‘‘male person under sixteen years of age or each female person under eight- een years of age’’ to reflect the interpretation of this provision subsequent to enactment of civil rights laws such as section 703 of the Civil Rights Act of 1964 (42:2000e–2), as carried out by the Department of Labor through 41 C.F.R. Part 50–201.104. The words ‘‘incarcer- ated individual’’ are substituted for ‘‘convict laborer’’ because of the exception to convict labor that satisfies the conditions of 18:1761(c). Section 1761 does not apply to non-incarcerated convicts. Subsection (b)(2) is substituted for ‘‘a sum equal to the amount of any deductions, rebates, refunds, or un- derpayment of wages due to any employee engaged in the performance of such contract’’ for consistency in the chapter. In subsection (c), the words ‘‘made the contract’’ and ‘‘make other contracts’’ are substituted for ‘‘entering into such contract’’ and ‘‘enter into other contracts’’, respectively, for consistency in the revised title. In subsection (d), the words ‘‘suit brought by the At- torney General’’ are substituted for ‘‘suits brought in the name of the United States of America by the Attor- ney General thereof ’’ to eliminate unnecessary words. § 6504. Three-year prohibition on new contracts in case of breach or violation (a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to each agency of the United States a list containing the names of persons found by the Secretary to have breached or violated a representation or stipulation in- cluded in a contract under section 6502 of this title. (b) THREE-YEAR PROHIBITION.—Unless the Sec- retary recommends otherwise, a contract de- scribed in section 6502 of this title may not be awarded to a person named on the list under subsection (a), or to a firm, corporation, part- nership, or association in which the person has a controlling interest, until 3 years have elapsed from the date of the determination by the Sec- retary that a breach or violation occurred. (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3808.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6504 ............ 41:37. June 30, 1936, ch. 881, § 3, 49 Stat. 2037. In this section, the words ‘‘or firms’’ are omitted be- cause of the definition of ‘‘person’’ in 41:41, restated in section 6501 of the revised title. In subsection (a), the words ‘‘or violated’’ are added for consistency in the chapter. In subsection (b), the words ‘‘contract described in section 6502 of this title’’ are substituted for ‘‘con- tracts’’ to clarify the scope of the prohibition. The words ‘‘the date of the determination by the Secretary that a breach or violation occurred’’ are substituted for ‘‘the date the Secretary of Labor determines such breach to have occurred’’ to clarify that the three-year period begins with the date of the Secretary’s deter- mination and not with the date of the breach or viola- tion. The words ‘‘or violation’’ are added for consist- ency in the chapter. § 6505. Exclusions (a) ITEMS AVAILABLE IN THE OPEN MARKET.— This chapter does not apply to the purchase of materials, supplies, articles, or equipment that may usually be bought in the open market. (b) PERISHABLES AND AGRICULTURAL PROD- UCTS.—This chapter does not apply to any of the following: (1) Perishables, including dairy, livestock and nursery products. (2) Agricultural or farm products processed for first sale by the original producers. (3) Contracts made by the Secretary of Agri- culture for the purchase of agricultural com- modities or products of agricultural commod- ities. (c) CARRIAGE OF FREIGHT OR PERSONNEL.—This chapter may not be construed to apply to— (1) the carriage of freight or personnel by vessel, airplane, bus, truck, express, or rail- way line where published tariff rates are in ef- fect; or (2) common carriers subject to the Commu- nications Act of 1934 (47 U.S.C. 151 et seq.). (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3809.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6505 ............ 41:43. June 30, 1936, ch. 881, § 9, 49 Stat. 2039. Editorial Notes REFERENCES IN TEXT The Communications Act of 1934, referred to in sub- sec. (c)(2), is act June 19, 1934, ch. 652, 48 Stat. 1064,