Volume 72 · 972
Public Law 85–804
To authorize the making, amendment, and modification of contracts to facilitate the national defense.
Approved August 28, 1958
Statutory text
AN ACT
To authorize the making, amendment, and modification of contracts to facilitate the national defense.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the President may authorize any department or agency of the Government which exercises functions in connection with the national defense, acting in accordance with regulations prescribed by the President for the protection of the Government, to enter into contracts or into amendments or modifications of contracts heretofore or hereafter made and to make advance payments thereon, without regard to other provisions of law relating to the making, performance, amendment, or modification of contracts, whenever he deems that such action would facilitate the national defense. The authority conferred by this section shall not be utilized to obligate the United States in an amount in excess of $50,000 without approval by an official at or above the level of an Assistant Secretary or his Deputy, or an assistant head or his deputy, of such department or agency, or by a Contract Adjustment Board established therein.
Sec. 2.
Nothing in this Act shall be construed to constitute authorization
Restrictions.
hereunder for—
the use of the cost-plus-a-percentage-of-cost system of contracting;
any contract in violation of existing law relating to limitation of profits;
the negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding;
the waiver of any bid, payment, performance, or other bond required by law;
the amendment of a contract negotiated under section 2304
(a) (15), title 10, United States Code, or under section 302 (c) (13) of the Federal Property and Administrative Services Act
of 1949, as amended (63 Stat. 377, 394), to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder; or
the formalization of an informal commitment, unless it is found that at the time the commitment was made it was impracticable to use normal procurement procedures.
Sec. 3.
All actions under the authority of this Act shall be
Public record.
made a matter of public record under regulations prescribed by the President and when deemed by him not to be detrimental to the national security.
All contracts entered into, amended, or modified pursuant to
Examination of records by Comptroller General.
authority contained in this Act shall include a clause to the effect that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment, have access to and the right to examine any directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors engaged in the performance of and involving transactions related to such contracts or subcontracts.
Sec. 4.
Every department and agency acting under authority
Report to Congress.
of this Act shall, by March 15 of each year, report to Congress all such actions taken by that department or agency during the preceding calendar year. With respect to actions which involve actual or potential cost to the United States in excess of $50,000, the report shall—
name the contractor;
state the actual cost or estimated potential cost involved;
describe the property or services involved; and
state further the circumstances justifying the action taken.
With respect to (1), (2), (3), and (4), above, and under regulations prescribed by the President, there may be omitted any information the disclosure of which would be detrimental to the national security.
The Clerk of the House and the Secretary of the Senate shall cause to be published in the Congressional Record all reports submitted pursuant to this section.
Sec. 5.
This Act shall be effective only during a national emergency
Effective period.
declared by Congress or the President and for six months after the termination thereof or until such earlier time as Congress, by concurrent resolution, may designate.
Approved August 28, 1958.