Public Law 74–881

That 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:

Sec. 2.

That any breach or violation of any of the representations and

Damages for breach of contract.

stipulations in any contract for the purposes set forth in section 1 hereof shall render the party responsible therefor liable to the United States of America for liquidated damages, in addition to damages

Additional penalties.

for any other breach of such contract, the sum of $10 per day for each male person under sixteen years of age or each female person under eighteen years of age, or each convict laborer knowingly employed in the performance of such contract, and a sum equal to the amount of any deductions, rebates, refunds, or underpayment of wages due to any employee engaged in the performance of such contract; and, in addition, the agency of the

Cancelation of contracts.

Open-market purchases; charging of additional cost to contractor.

United States entering into such contract shall have the right to cancel same and to make open-market purchases or enter into other contracts for the completion of the original contract, charging any additional cost to the original contractor. Any sums of money due to the United States of America by reason of any violation of any of the representations and stipulations of said contract set forth in section 1 hereof may be withheld from any amounts due on any such contracts or may be recovered in suits brought in the name of the United States of America by the Attorney General thereof. All

Use of sums withheld.

sums withheld or recovered as deductions, rebates, refunds, or underpayments of wages shall be held in a special deposit account and shall be paid, on order of the Secretary of Labor, directly to the employees who have been paid less than minimum rates of pay as set forth in such contracts and on whose account such sums were withheld or recovered: Provided, That no claims by employees for

Proviso.

Filing of claims.

such payments shall be entertained unless made within one year from the date of actual notice to the contractor of the withholding or recovery of such sums by the United States of America.

Sec. 3.

The Comptroller General is authorized and directed to

Distribution to Federal agencies of list of persons, etc., who have breached contracts.

distribute a list to all agencies of the United States containing the names of persons or firms found by the Secretary of Labor to have breached any of the agreements or representations required by this

Exclusion from future awards; duration.

Act. Unless the Secretary of Labor otherwise recommends no contracts shall be awarded to such persons or firms or to any firm, corporation, partnership, or association in which such persons or firms have a controlling interest until three years have elapsed from the date the Secretary of Labor determines such breach to have occurred.

Sec. 4.

The Secretary of Labor is hereby authorized and directed to administer the provisions of this Act and to utilize such Federal

State, etc., assistance.

officers and employees and, with the consent of the State, such State and local officers and employees as he may find necessary to assist in the administration of this Act and to prescribe rules and

Appointment of administrative officer, attorneys, experts, and other personnel.

regulations with respect thereto. The Secretary shall appoint, without regard to the provisions of the civil-service laws but subject to the Classification Act of 1923, an administrative officer, and such attorneys and experts, and shall appoint such other employees with regard to existing laws applicable to the employment and compensation of officers and employees of the United States, as he may from time to time find necessary for the administration of this Act.

Investigations authorized.

The Secretory of Labor or his authorized representatives shall have power to make investigations and findings as herein provided, and prosecute any inquiry necessary to bis functions in any part of the

Rules, etc.

United States. The Secretary of Labor shall have authority from time to time to make, amend, and rescind such rules and regulations as may be necessary to carry out the provisions of this Act.

Sec. 5.

Upon his own motion or on application of any person affected by any ruling of any agency of the United States in relation to any proposal or contract involving any of the provisions of this Act, and on complaint of a breach or violation of any representation or stipulation as herein provided, the Secretary of Labor, or an impartial representative designated by him, shall have the power to hold hearings and to issue orders requiring the attendance and testimony

Witnesses; fees and mileage allowances.

of witnesses and the production of evidence under oath. Witnesses shall be paid the same fees and mileage that are paid witnesses

Compulsory attendance.

in the courts of the United States. In case of contumacy, failure, or refusal of any person to obey such an order, any District Court of the United States or of any Territory or possession, or the Supreme Court of the District of Columbia, within the jurisdiction of which the inquiry is carried on, or within the jurisdiction of which said person who is guilty of contumacy, failure, or refusal is found, or resides or transacts business, upon the application by the Secretary of Labor or representative designated by him, shall have jurisdiction to issue to such person an order requiring such person to appear before him or representative designated by him, to produce evidence

Testimony.

if, as, and when so ordered, and to give testimony relating to the matter under investigation or in question : and any failure to obey such order of the court may be punished by said court as a contempt

Findings of fact; effect of.

thereof; and shall make findings of fact after notice and hearing, which findings shall be conclusive upon all agencies of the United States, and if supported by the preponderance of the evidence, shall be conclusive in any court of the United States; and the Secretary of Labor or authorized representative shall have the power, and is hereby authorized, to make such decisions, based upon findings of fact, as are deemed to be necessary to enforce the provisions of this Act.

Sec. 6.

Upon a written finding by the head of the contracting agency or department that the inclusion in the proposal or contract of the representations or stipulations set forth in section 1 will seriously impair the conduct of Government business, the Secretary of Labor shall make exceptions in specific cases or otherwise when justice or public interest will be served thereby. Upon the joint

Modification of contracts.

recommendation of the contracting agency and the contractor, the Secretary of Labor may modify the terms of an existing contract respecting minimum rates of pay and maximum hours of labor as he may find necessary and proper in the public interest or to prevent injustice and undue hardship. The Secretary of Labor may provide

Variations, etc.

reasonable limitations and may make rules and regulations allowing reasonable variations, tolerances, and exemptions to and from any or all provisions of this Act respecting minimum rates of pay and maximum hours of labor or the extent of the application of this Act to contractors, as hereinbefore described. Whenever the Secretary

Pay for overtime work.

of Labor shall permit an increase in the maximum hours of labor stipulated in the contract, he shall set a rate of pay for any overtime, which rate shall be not less than one and one-half times the basic hourly rate received by any employee affected.

Sec. 7.

Whenever used in this Act, the word “person” includes one

“Person” defined.

or more individuals, partnerships, associations, corporations, legal representatives, trustees, trustees in bankruptcy, or receivers.

Sec. 8.

The provisions of this Act shall not be construed to modify

Buy American Act not affected.

or amend title III of the Act entitled “An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes”, approved May ¹¹ So in original.

Vol. 47, p. 1520.

3, 1933 (commonly known as the Buy American Act), nor shall the provisions of this Act be construed to modify or amend the Act entitled “An Act relating to the rate of wages for laborers

Bacon-Davis Act.

Vol. 46, p. 1494.

and mechanics employed on public buildings of the United States and the District of Columbia by contractors and subcontractors, and for other purposes”, approved March 3, 1931 (commonly known as the Bacon-Davis Act), as amended from time to time, nor the labor

Public works projects.

Vol. 48, p. 200.

Emergency Relief Act.

Ante, p. 118.

provisions of title II of the National Industrial Recovery Act, approved June 16, 1933, as extended, or of section 7 of the Emergency Relief Appropriation Act, approved April 8, 1935; nor shall the provisions of this Act be construed to modify or amend the Act entitled “An Act to provide for the diversification of employment

Federal prison industries.

of Federal prisoners, for their training and schooling in trades and

Vol. 46, p. 391; Vol. 48, p. 1211.

occupations, and for other purposes”, approved May 27, 1930, as amended and supplemented by the Act approved June 23, 1934.

Sec. 9.

This Act shall not apply to purchases of such materials,

Open market, etc., purchases not included.

supplies, articles, or equipment as may usually be bought in the open market; nor shall this Act apply to perishables, including daily, livestock and nursery products, or to agricultural or farm products processed for first sale by the original producers; nor to any contracts made by the Secretary of Agriculture for the purchase of agricultural commodities or the products thereof. Nothing

Transportation, communication. contracts not included.

Vol. 48, p. 1064.

U. S. C., p. 2081.

in this Act shall be construed to apply to carriage of freight or personnel by vessel, airplane, bus truck, express, or railway line where published tariff rates are in effect or to common carriers subject to the Communications Act of 1934.

Sec. 10. separability clause

If any provision of this Act, or the application thereof

Separability clause.

to any persons or circumstances, is held invalid, the remainder of the Act, and the application of such provisions to other persons or circumstances, shall not be affected thereby.

Sec. 11.

This Act shall apply to all contracts entered into pursuant

Effective date.

to invitations for bids issued on or after ninety days from

Proviso.

Representations as to minimum wages; scope.

the effective date of this Act: Provided, however, That the provisions requiring the inclusion of representations with respect to minimum wages snail apply only to purchases or contracts relating to such industries as have been the subject matter of a determination by the Secretary of Labor.