41 U.S.C. § 4501 — Authority of executive agency

Page 136 TITLE 41—PUBLIC CONTRACTS § 4501 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 4310(a) ........ 41:256(k)(6). June 30, 1949, ch. 288, title III, § 306(k), as added Pub. L. 100–700, § 8(a)(1), Nov. 19, 1988, 102 Stat. 4634; Pub. L. 103–355, title II, § 2151, Oct. 13, 1994, 108 Stat. 3313. 4310(b) ........ 41:256(k)(1). 4310(c) ........ 41:256(k)(2). 4310(d) ........ 41:256(k)(3). 4310(e) ........ 41:256(k)(4). 4310(f) ........ 41:256(k)(5). Editorial Notes AMENDMENTS 2016—Pub. L. 114–261, § 1(b)(2)(A)(i), (ii), inserted ‘‘, subcontractor, or personal services contractor’’ after ‘‘contractor’’ and ‘‘, subcontract, or personal services contract’’ after ‘‘contract’’ wherever appearing. Subsec. (b)(1). Pub. L. 114–261, § 1(b)(2)(A)(iii), inserted ‘‘or to any other activity described in section 4712(a)(1) of this title’’ after ‘‘statute or regulation’’. 2013—Subsec. (b). Pub. L. 112–239, § 828(d)(1), sub- stituted ‘‘commenced by the Federal Government, by a State, or by a contractor or grantee employee submit- ting a complaint under section 4712 of this title’’ for ‘‘commenced by the Federal Government or a State’’. Subsec. (c)(3). Pub. L. 112–239, § 828(d)(2), substituted ‘‘the imposition of a monetary penalty or an order to take corrective action under section 4712 of this title’’ for ‘‘the imposition of a monetary penalty’’. CHAPTER 45—CONTRACT FINANCING Sec. 4501. Authority of executive agency. 4502. Payment. 4503. Security for advance payments. 4504. Conditions for progress payments. 4505. Payments for commercial products and com- mercial services. 4506. Action in case of fraud. Editorial Notes AMENDMENTS 2018—Pub. L. 115–232, div. A, title VIII, § 836(b)(18)(B)(ii), Aug. 13, 2018, 132 Stat. 1864, sub- stituted ‘‘Payments for commercial products and com- mercial services’’ for ‘‘Payments for commercial items’’ in item 4505. § 4501. Authority of executive agency An executive agency may— (1) make advance, partial, progress or other payments under contracts for property or services made by the agency; and (2) insert in solicitations for procurement of property or services a provision limiting to small business concerns advance or progress payments. (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3790.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 4501 ............ 41:255(a). June 30, 1949, ch. 288, title III, § 305(a), 63 Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 72 Stat. 966; Pub. L. 103–355, title II, § 2051(a)(2), (c), Oct. 13, 1994, 108 Stat. 3304. Statutory Notes and Related Subsidiaries RELATIONSHIP TO PROMPT PAYMENT REQUIREMENTS Pub. L. 103–355, title II, § 2051(f), Oct. 13, 1994, 108 Stat. 3306, provided that: ‘‘The amendments made by this section [see Tables for classification] are not intended to impair or modify procedures required by the provi- sions of chapter 39 of title 31, United States Code, and the regulations issued pursuant to such provisions of law (as such procedures are in effect on the date of the enactment of this Act [Oct. 13, 1994]), except that the Government may accept payment terms offered by a contractor offering a commercial item.’’ § 4502. Payment (a) BASIS FOR PAYMENT.—When practicable, payments under section 4501 of this title shall be made on any of the following bases: (1) Performance measured by objective, quantifiable methods such as delivery of ac- ceptable items, work measurement, or statis- tical process controls. (2) Accomplishment of events defined in the program management plan. (3) Other quantifiable measures of results. (b) PAYMENT AMOUNT.—Payments made under section 4501 of this title may not exceed the un- paid contract price. (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3791.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 4502(a) ........ 41:255(b). June 30, 1949, ch. 288, title III, § 305(b), as added Pub. L. 103–355, title II, § 2051(b), Oct. 13, 1994, 108 Stat. 3304. 4502(b) ........ 41:255(c). June 30, 1949, ch. 288, title III, § 305(c), 63 Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 72 Stat. 966; Pub. L. 103–355, title II, § 2051(a)(3), (5), Oct. 13, 1994, 108 Stat. 3304. § 4503. Security for advance payments Advance payments under section 4501 of this title may be made only on adequate security and a determination by the agency head that to do so would be in the public interest. The secu- rity may be in the form of a lien in favor of the Federal Government on the property contracted for, on the balance in an account in which the payments are deposited, and on such of the prop- erty acquired for performance of the contract as the parties may agree. This lien shall be para- mount to all other liens and is effective imme- diately upon the first advancement of funds without filing, notice, or any other action by the Federal Government. (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3791.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 4503 ............ 41:255(d). June 30, 1949, ch. 288, title III, § 305(d), 63 Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 72 Stat. 966; Pub. L. 103–355, title II, § 2051(a)(4), (5), (d), Oct. 13, 1994, 108 Stat. 3304.