Ex. ORD. No. 10582. UNIFORM PROCEDURES FOR DETERMINATIONS Ex. Ord. No. 10582, Dec. 17, 1954, 19 F.R. 8723, as amended by Ex. Ord. No. 11051, Sept. 27, 1962, 27 F.R. 9683, provided: SECTION 1. As used in this order, (a) the term "materials" includes articles and supplies, (b) the term “executive agency" includes executive department, independent establishment, and other instrumentality of the executive branch of the Government, and (c) the term "bid or offered price of materials of foreign origin" means the bid or offered price of such materials delivered at the place specified in the invitation to bid including applicable duty and all costs incurred after arrival in the United States. SEC. 2. (a) For the purposes of this order materials shall be considered to be of foreign origin if the cost of the foreign products used in such materials constitutes fifty per centum or more of the cost of all the products used in such materials. (b) For the purposes of the said act of March 3, 1933 [sections 10a-10c of this title], and the other laws referred to in the first paragraph of the preamble of this order, the bid or offered price of materials of domestic origin shall be deemed to be unreasonable, or the purchase of such materials shall be deemed to be inconsistent with the public interest, if the bid or offered price thereof exceeds the sum of the bid or offered price of like materials of foreign origin and a differential computed as provided in subsection (c) of this section. (c) The executive agency concerned shall in each instance determine the amount of the differential referred to in subsection (b) of this section on the basis of one of the following-described formulas, subject to the terms thereof: (1) The sum determined by computing six per centum of the bid or offered price of materials of foreign origin. (2) The sum determined by computing ten per centum of the bid or offered price of materials of foreign origin exclusive of applicable duty and all costs incurred after arrival in the United States: provided that when the bid or offered price of materials of foreign origin amounts to less than $25,000, the sum shall be determined by computing ten per centum of such price exclusive only of applicable duty. SEC. 3. Nothing in this order shall affect the authority or responsibility of an executive agency: (a) To reject any bid or offer for reasons of the national interest not described or referred to in this order; or (b) To place a fair proportion of the total purchases with small business concerns in accordance with section 302 (b) of the Federal Property and Administrative Services Act of 1949, as amended [section 252 (b) of this title], section 2 (b) of the Armed Services Procurement Act of 1947, as amended [former section 151 (b) of this title], and section 202 of the Small Business Act of 1953 [section 631 of Title 15]; or (c) To reject a bid or offer to furnish material of foreign origin in any situation in which the domestic supplier offering the lowest price for furnishing the desired materials undertakes to produce substantially all of such materials in areas of substantial unemployment. as determined by the Secretary of Labor in accordance with such appropriate regulations as he may establish and during such period as the President may determine that it is in the national interest to provide to such areas preference in the award of Government contracts: Provided, that nothing in this section shall prevent the rejection of a bid or offered price which is excessive; or (d) To reject any bid or offer for materials of foreign origin if such rejection is necessary to protect essential national-security interests after receiving advice with respect thereto from the President or from the Director of the Office of Emergency Planning [now Office of Emergency Preparedness]. In providing this advice the Director shall be governed by the principle that exceptions under this section shall be made only upon a clear showing that the payment of a greater differential than the procedures of this section generally prescribe is justified by consideration of national security. SEC. 4. The head of each executive agency shall issue such regulations as may be necessary to insure that pro curement practices under his jurisdiction conform to the provisions of this order. SEC. 5. This order shall apply only to contracts entered into after the date hereof. In any case in which the head of an executive agency proposing to purchase domestic materials determines that a greater differential than that provided in this order between the cost of such materials of domestic origin and materials of foreign origin is not unreasonable or that the purchase of materials of domestic origin is not inconsistent with the public interest, this order shall not apply. A written report of the facts of each case in which such a determination is made shall be submitted to the President through the Director of the Bureau of the Budget [now Office of Management and Budget] by the official making the determination within 30 days thereafter. DWIGHT D. EISENHOWER § 11. No contracts or purchases unless authorized or under adequate appropriation; report to the Congress. (a) No contract or purchase on behalf of the United States shall be made, unless the same is authorized by law or is under an appropriation adequate to its fulfillment, except in the Departments of the Army, Navy, and Air Force, for clothing, subsistence, forage, fuel, quarters, transportation, or medical and hospital supplies, which, however, shall not exceed the necessities of the current year. (b) The Secretary of Defense shall immediately advise the Congress of the exercise of the authority granted in subsection (a) of this section, and shall report quarterly on the estimated obligations incurred pursuant to the authority granted in subsection (a) of this section. (R.S. § 3732; June 12, 1906, ch. 3078, 34 Stat. 255; Oct. 15, 1966, Pub. L. 89-687, title VI, § 612(e), 80 Stat. 993.) DERIVATION Act Mar. 2, 1861, ch. 84, § 10, 12 Stat. 220. CODIFICATION The Department of the Air Force was inserted under the authority of section 207 (a), (f) of act July 26, 1947, ch. 343, title II, 61 Stat. 501, and Secretary of Defense Transfer Orders No. 6, eff. Jan. 15, 1948; No. 12 [§ 1 (13) ], May 14, 1948; No. 39, May 18, 1949, and No. 40 [App. B(115) ], July 22, 1949. The Department of War was designated the Department of the Army and the title of the Secretary of War was 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 3011-3013 and 8011-8013 continued the military Departments of the Army and Air Force under the administrative supervision of a Secretary of the Army and a Secretary of the Air Force, respectively. AMENDMENTS 1966-Pub. L. 89-687 designated existing provisions as subsec. (a) and added subsec (b). 1906-Act June 12, 1906, inserted "medical and hospital supplies." CROSS REFERENCES Contracts for Indian supplies in advance of appropriations, see section 99 of Title 25, Indians. Expenditure by any department in excess of appropriations prohibited, see section 665 of Title 31, Money and Finance. Printing appropriations not to be exceeded, see section 1102 of Title 44, Public Printing and Documents. Projects under Mexican treaties, authority to enter into contracts beyond amount appropriated, notwithstanding this section, see section 277d-3 of Title 22, Foreign Relations and Intercourse. Public lands, fire protection: contract authority of Secretary of Interior for use of aircraft, and for supplies and services, in advance of appropriation; accrual of SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 22 section 277d-3; § 12. No contract to exceed appropriation. No contract shall be entered into for the erection, DERIVATION Act July 25, 1868, ch. 233, § 3, 15 Stat. 177. CROSS REFERENCES Contracting officer paying larger amount than specific Foreign military personnel, furnishing facilities for Making of contracts for public buildings on partial Projects under Mexican treaties, authority to enter into Provisions inapplicable to lease-purchase contracts, SECTION REFERRED TO IN OTHER SECTIONS § 13. Contracts limited to one year. Except as otherwise provided, it shall not be lawful DERIVATION Res. Jan. 31, 1868, No. 8, 15 Stat. 246; Res. Mar. 24, EXEMPTION OF FUNCTIONS Functions authorized by Foreign Assistance Act of CROSS REFERENCES Contracts by Secretary of the Treasury for manufac- General Services Administration, section inapplicable SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 260 of this title; § 13a. Repealed. Pub. L. 86-682, § 12(c), Sept. 2, 1960, Section, act Mar. 24, 1874, No. 6, 18 Stat. 286, excepted § 14. Restriction on purchases of land. No land shall be purchased on account of the DERIVATION Act May 1, 1820, ch. 52, § 7, 3 Stat. 568. Provisions inapplicable to lease-purchase contracts, see SECTION REFERRED TO IN OTHER SECTIONS § 15. Transfers of contracts; assignments of claims; No contract or order, or any interest therein, shall The provisions of the preceding paragraph shall Notwithstanding any law to the contrary govern- In any case in which moneys due or to become States of any amount heretofore since July 1, 1950, or hereafter received under the assignment. Any contract of the Department of Defense, the General Services Administration, the Atomic Energy Commission, or any other department or agency of the United States designated by the President, except any such contract under which full payment has been made, may, in time of war or national emergency proclaimed by the President (including the national emergency proclaimed December 16, 1950) or by Act or joint resolution of the Congress and until such war or national emergency has been terminated in such manner, provide or be amended without consideration to provide that payments to be made to the assignee of any moneys due or to become due under such contract shall not be subject to reduction or set-off, and if such provision or one to the same general effect has been at any time heretofore or is hereafter included or inserted in any such contract, payments to be made thereafter to an assignee of any moneys due or to become due under such contract, whether during or after such war or emergency, shall not be subject to reduction or set-off for any liability of any nature of the assignor to the United States or any department or agency thereof which arises independently of such contract, or hereafter for any liability of the assignor on account of (1) renegotiation under any renegotiation statute or under any statutory renegotiation article in the contract, (2) fines, (3) penalties (which term does not include amounts which may be collected or withheld from the assignor in accordance with or for failure to comply with the terms of the contract), or (4) taxes, social security contributions, or the withholding or nonwithholding of taxes or social security contributions, whether arising from or independently of such contract. Except as herein otherwise provided, nothing in this section, shall be deemed to affect or impair rights or obligations heretofore accrued. (R. S. § 3737; Oct. 9, 1940, ch. 779, § 1, 54 Stat. 1029; May 15, 1951, ch. 75, 65 Stat. 41.) DERIVATION Act July 17, 1862, ch. 200, § 14, 12 Stat. 596. AMENDMENTS 1951-Act May 15, 1951, made it clear that a bank or other financing institution taking an assignment of claims pursuant to this section would not be subject to later recovery by the Government of amounts previously paid to the bank by the assignee except in cases of fraud. 1940-Act Oct. 9, 1940, added the second and third paragraphs of this section. MONEYS DUE UNDER LETTERS OF COMMITMENT ISSUED IN CONNECTION WITH DISPOSITION OF SURPLUS AGRICUL TURAL COMMODITIES Moneys due under letters of commitment issued against funds or guaranties of funds supplied by Commodity Credit Corporation in connection with disposition of surplus agricultural commodities to foreign countries, as assignable under the Assignment of Claims Act of 1940, which constitutes this section and section 203 of Title 31, Money and Finance, see section 1702 of Title 7, Agriculture. CROSS REFERENCES Assignment of claims, generally, see section 203 of Title 31, Money and Finance. Renegotiation of war and defense contracts, see sections 1193 and 1211 et seq. of Title 50, Appendix, War and National Defense. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 22 section 2392; title 50 App. section 1215. § 16. Repealed. Oct. 21, 1941, ch. 452, 55 Stat. 743. Section, R. S. § 3744; acts June 15, 1917, ch. 29, § 1, 40 Stat. 198; Feb. 4, 1929, ch. 146, § 1, 45 Stat. 1147, related to requirement that contracts made by the Secretaries of War, Navy and Interior be in writing, and that copies thereof be filed in the returns office of the Department of the Interior. SS 16a to 16d. Omitted. CODIFICATION Section 16a, acts June 25, 1910, ch. 431, § 23, 36 Stat. 861; May 18, 1916, ch. 125, § 1, 39 Stat. 126; Jan. 12, 1927, ch. 27, 44 Stat. 936, authorized purchases by Department of Interior without compliance with former section 16 of this title. Section 16b, acts Apr. 17, 1936, ch. 233, § 1, 49 Stat. 1226; May 18, 1937, ch. 223, 50 Stat. 181; May 17, 1938, ch. 236, § 1, 52 Stat. 393; June 16, 1939, ch. 208, § 1, 53 Stat. 834; June 18, 1940, ch. 396, § 1, 54 Stat. 474, authorized purchases by Botanic Garden without compliance with former section 16 of this title. Section 16c, act May 13, 1926, ch. 294, § 1, 44 Stat. 547, authorized purchases by Architect of Capitol without compliance with former section 16 of this title. Similar provisions were included in section 6a (0) of this title. making purchases not subject to section 5 of this title. Section 16d, act Aug. 4, 1939, ch. 418, § 13, 53 Stat. 1197, authorized purchases by Bureau of Reclamation without compliance with former section 16 of this title. §§ 17 to 19. Repealed. Oct. 21, 1941, ch. 452, 55 Stat. 743. Section 17, R. S. § 3745, provided that an affidavit be affixed to the return of contract required by former section 16 of this title. Section 18, R. S. § 3746, provided punishment for fallure to make returns of contracts as required by former sections 16 and 17 of this title. Section 19, R. S. § 3747, imposed duty on Secretaries of War, Navy, and Interior to furnish officers with letters of instruction relating to their duties under former sections 17 and 18, contract forms, and affidavits, to insure uniformity. § 20. Deposit of contracts. All contracts to be made, by virtue of any law, and requiring the advance of money, or in any manner connected with the settlement of public accounts, shall be deposited promptly in the General Accounting Office: Provided, That this section shall not apply to the existing laws in regard to the contingent funds of Congress. (R. S. § 3743; Feb. 27, 1877, ch. 69, § 1, 19 Stat. 249; July 31, 1894, ch. 174, § 18, 28 Stat. 210; June 10, 1921, ch. 18, §§ 304, 310, 42 Stat. 24, 25.) DERIVATION Acts July 16, 1798, ch. 85, § 6, 1 Stat. 610; Feb. 27, 1877, ch. 69, 19 Stat. 249. AMENDMENTS 1894-Act July 31, 1894, amended the section to read "shall be deposited promptly in the offices of the Auditors of the Treasury, according to the nature of the contracts: Provided, That this section shall not apply to the existing laws in regard to the contingent funds of Congress." 1877-Act Feb. 27, 1877, inserted after the words "in the office of the First Comptroller of the Treasury of the United States" the words "the Second Comptroller of the Treasury of the United States, or the Commissioner of Customs, respectively, according to the nature thereof." TRANSFER OF FUNCTIONS CROSS REFERENCES Copies of all contracts made by Commissioner of Indian General Accounting Office, see section 41 et seq. of Title SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 20a, 20b, 20c of § 20a. Same; exemption of contracts concerning na- Permits, contracts, agreements, or other instru- § 20b. Same; exemption of leases, contracts, etc., con- Leases, permits, licenses, contracts, agreements, § 21. Same; rules and regulations. The heads of the several executive departments REFERENCES IN TEXT In the original "section 20" read "Act" meaning act TRANSFER OF FUNCTIONS The offices of the six auditors of the Treasury Depart- CROSS REFERENCES Comptroller General authorized to prescribe systems § 22. Interest of Member of Congress. In every contract or agreement to be made or DERIVATION Acts Apr. 21, 1808, ch. 48, § 3, 2 Stat. 484; Feb. 27, 1877, REFERENCES IN TEXT The popular name acts referred to in the text have Agricultural Adjustment Act, see chapter 26 of Title 7, Federal Farm Loan Act, see note under section 641 of Emergency Farm Mortgage Act of 1933, see sections Federal Farm Mortgage Corporation Act, see sections Farm Credit Act of 1933, see note under section 639 of Home Owners' Loan Act of 1933, see sections 1424, AMENDMENTS 1937-Act Aug. 26, 1937, added the provision at the end 1934-Act June 27, 1934, inserted "the Federal Farm 1877-Act Feb. 27, 1877, inserted "or Delegate to" after CROSS REFERENCES Acquisition of land for flood control, applicability of this section, see section 702m of Title 33, Navigation and Navigable Waters. Commodity Credit Corporation, agreements of, except agreements with farmers participating in Corporation's program, subject to this section, see section 7141 of Title 15, Commerce and Trade. Contracts by Members of Congress and exemptions with respect to certain contracts, see sections 431 and 433 of Title 18, Crimes and Criminal Procedure. Secretary of State contracts with foreign or domestic agencies for purposes of United States exchange program excepted from this section, see section 1472 (2) of Title 22, Foreign Relations and Intercourse. agreements Section inapplicable to crop-insurance made under the Federal Crop Insurance Act, chapter 36 of Title 7, Agriculture, see section 1514 (f) of Title 7. Section inapplicable to loans or payments made under sections 590h and 5900 of Title 16, Conservation, and the Agricultural Adjustment Act of 1938, chapter 35 of Title 7, Agriculture, except section 1383 (a), see section 1386 of Title 7. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 7 section 1514; title 15 section 714b; title 22 sections 1472, 2676; title 33 section 702m. § 23. Orders or contracts for material placed with Government-owned establishments deemed obli gations. All orders or contracts for work or material or for the manufacture of material pertaining to approved projects heretofore or hereafter placed with Government-owned establishments shall be considered as obligations in the same manner as provided for similar orders or contracts placed with commercial manufacturers or private contractors, and the appropriations shall remain available for the payment of the obligations so created as in the case of contracts or orders with commercial manufacturers or private contractors. (June 5, 1920, ch. 240, 41 Stat. 975; July 1, 1922, ch. 259, 42 Stat. 812; June 2, 1937, ch. 293, 50 Stat. 245.) AMENDMENTS 1937-Act June 2, 1937, continued this section in effect. 1922-Act July 1, 1922, inserted "for work or material near the beginning," "or contracts" following "similar orders" and "or private contractors" following "commercial manufacturers" in two places. § 24. Contracts for transportation of moneys, bullion, coin, and securities. Whenever it is practicable contracts for the transportation of moneys, bullion, coin, notes, bonds, and other securities of the United States, and paper shall be let to the lowest responsible bidder therefor, after notice to all parties having means of transportation. (July 7, 1884, ch. 332, 23 Stat. 204.) CODIFICATION Section is from Sundry Civil Appropriation Act July 7, 1884, fiscal year 1885. § 24a. Cancellation of contracts for transportation; compensation. CODIFICATION Section, acts June 16, 1933, ch. 101, § 5, 48 Stat. 305; Apr. 24, 1935, ch. 78, 49 Stat. 161; Aug. 29, 1935, ch. 816, 49 Stat. 991, provided for cancellation on or before March 31, 1936, of contracts for transportation entered into prior to June 16, 1933. § 25. Repealed. Feb. 19, 1948, ch. 65, § 11 (a), 62 Stat. 25. Section, R. S. § 3729, related to contracts for bunting, and is now covered generally by section 2301 et seq. of Title 10, Armed Forces. § 26. Repealed. June 30, 1949, ch. 288, title VI, § 602 (a) (26), 63 Stat. 401, eff. July 1, 1949, renumbered Sept. 5, 1950, ch. 849, § 6 (a), (b), 64 Stat. 583. Section, acts Mar. 4, 1915, ch. 147, § 5, 38 Stat. 1161; May 29, 1928, ch. 901, § 1 (5), 45 Stat. 986, related to exchange of typewriters and adding machines in part payment for new machines and is now covered by section 481 of Title 40, Public Buildings, Property, and Works. § 27. Repealed. Oct. 31, 1951, ch. 654, § 1 (109), 65 Stat. 705. Section, act June 5, 1920, ch. 235, § 7, 41 Stat. 947, which related to disposition of typewriting machines by Government departments and establishments, is now covered by sections 481 (c), 483 and 484 of Title 40, Public Buildings, Property, and Works. §§ 28 to 34. Omitted. CODIFICATION Sections 28-33, act June 16, 1934, ch. 553, §§ 1-6, 48 Stat. 974, 975, relating to claims for losses due to compliance with codes of fair competition, were omitted as executed. Section 34, act Aug. 29, 1935, ch. 815, 49 Stat. 990, providing that bids made subject to codes of fair competition prior to Aug. 29, 1935 should not be rejected where bidder agreed to be subject to Acts of Congress requiring observance of minimum wages, maximum hours, or limitations as to age of employees in performance of contracts, with federal agencies was omitted as executed. § 35. Contracts for materials, etc., exceeding $10,000: representations and stipulations. In any contract made and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation all the stock of which is beneficially owned by the United States (all the foregoing being hereinafter designated as agencies of the United States), for the manufacture or furnishing of materials, supplies, articles, and equipment in any amount exceeding $10,000, there shall be included the following representations and stipulations: (a) That the contractor is the manufacturer of or a regular dealer in the materials, supplies, articles, or equipment to be manufactured or used in the performance of the contract; (b) That all persons employed by the contractor in the manufacture or furnishing of the materials, supplies, articles, or equipment used in the performance of the contract will be paid, without subsequent deduction or rebate on any account, not less than the minimum wages as determined by the Secretary of Labor to be the prevailing minimum wages for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished under said contract; (c) That no person employed by the contractor in the manufacture or furnishing of the materials, supplies, articles, or equipment used in the performance of the contract shall be permitted to work in excess of eight hours in any one day or in excess of forty hours in any one week: Provided, That the |