Volume 53 · 1240
Public Law 76–511
To facilitate certain construction work for the Army, and for other purposes.
Approved August 7, 1939
Statutory text
AN ACT
To facilitate certain construction work for the Army, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That to enable the
Army, construction work, Alaska and Canal Zone.
Secretary of War to accomplish without delay or excessive cost those public-works projects for which appropriations are available or may become available, to be located in Alaska and the Panama Canal Zone, he is hereby authorized to enter into contracts upon a cost-plus-a-fixed-fee
Contracts authorized on a cost-plus-a-fixed-fee basis.
basis after such negotiations as he may authorize and approve and without advertising for proposals with reference thereto. Approval by the President shall be necessary to the validity of any
Approval by the President.
Amount of fee.
contract entered into under authority of this section. The fixed fee to be paid the contractor as a result of any contract entered into under authority of this section shall be determined, at or before the time such contract is made, and shall be set forth in such contract. Such fee shall not exceed 10 per centum of the estimated cost of the
Limitation.
contract, exclusive of the fee, as determined by the Secretary of War. Changes in the amount of the fee shall be made only upon material
Changes.
changes in the scope of the work concerned as determined by the Secretary of War whose determination shall be conclusive.
Negotiations under this section shall be between the Secretary
Negotiations.
of War, or a duly authorized representative, and three or more reputable and qualified contracting individuals, firms, or corporations regularly engaged in work of comparable magnitude and class to that contemplated by the negotiations, as determined by the Secretary of War, and contracts may be made with any such individual, firm, or corporation, or with any two or more of them jointly, upon such terms and conditions as the Secretary of War may determine to be fair and equitable and in the interests of the national defense.
Detail of Army officer as executive representative of contracting officer.
For each contract entered into under authority of this section the Secretary of War may detail an Army officer to duty, without additional compensation, as an executive representative of the contracting officer. The contract shall provide that the officer so detailed shall have the right to attend any meetings of the board of directors or other executive or administrative board or committee of any corporation, partnership, firm, or syndicate which is or may become a party thereto for the purpose of submitting propositions, propounding questions, and receiving information relative to any matter within the purview of the contract with the intent and for the purpose of safeguarding the interests of the United States, coordinating efforts, and promoting mutually beneficial relationships, and making decisions within the scope of his delegated authority and not in conflict with any provision of the contract.
In any project the contract for which is negotiated under authority of this section, the Secretary of War may waive the requirement
Acceptance of materials.
of a performance and a payment bond and may accept materials required for any such project at such place or places as he may deem necessary to minimize insurance costs.
The Secretary of War shall report annually to the Congress all contracts entered into under authority of this section, including the names of the contractors and copies of the contracts concerned, together with the amounts thereof.
Sec. 2.
Whenever deemed by him to be advantageous to the national defense, and providing that in the opinion of the Secretary of War the existing facilities of the War Department are inadequate, the Secretary of War is hereby authorized to employ, by contract or otherwise, outside architectural or engineering corporations, firms, or individuals for the production and delivery of the designs, plans, drawings, and specifications required for the accomplishment of any public works or utilities project of the War Department without
5 U. S. C. §§ 661–674; Supp. IV, §§ 673, 673c.
R. S. § 3709.
Fee limitation.
reference to the Classification Act of 1923 (42 Stat. 1488), as amended (5 U. S. C., ch. 13), or to section 3709 of the Revised Statutes of the United States (41 U. S. C. 5). In no case shall the fee paid for any service authorized by this section exceed 6 per centum of the estimated cost, as determined by the Secretary of War, of the project to which such fee is applicable.
Approved, August 7, 1939.