Volume 80 · 851
Public Law 89–607
To amend title 10, United States Code, to exempt certain contracts with foreign contractors from the requirement for an examination-of-records clause.
Approved September 27, 1966
Statutory text
AN ACT
To amend title 10, United States Code, to exempt certain contracts with foreign contractors from the requirement for an examination-of-records clause.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That chapter 137 of title 10, United States Code, is amended as follows:
Section 2310(b) is amended—
by striking out the words “or section 2307(c)” and inserting the words “section 2307(c), or section 2313(c)” in place thereof; and
by striking out the words “or (4)” and inserting the words “(4) clearly indicate why the application of section 2313(b) to a contract or subcontract with a foreign contractor or foreign subcontractor would not be in the public interest, or (5)”.
Section 2313 is amended—
by striking out the word “Each” in subsection (b) and inserting the words “Except as provided in subsection (c), each” in place thereof; and
by adding the following new subsection at the end thereof:
“(c) Subsection (b) does not apply to a contract or subcontract with a foreign contractor or foreign subcontractor if the head of the agency determines, with the concurrence of the Comptroller General or his designee, that the application of that subsection to the contract or
Exceptional conditions.
subcontract would not be in the public interest. However, the concurrence of the Comptroller General or his designee is not required—
“(1) where the contractor or subcontractor is a foreign government or agency thereof or is precluded by the laws of the country involved from making its books, documents, papers, or records available for examination; and
“(2) where the head of the agency determines, after taking into account the price and availability of the property or services from United States sources, that the public interest would be best served by not applying subsection (b).
Report to Congress.
If subsection (b) is not applied to a contract or subcontract based on a determination under clause (2), a written report shall be furnished to the Congress.”
Sec. 2.
Section 304(c) of the Federal Property and Administrative Services Act of 1949, as added by the Act of October 31, 1951, chapter
652 (41 U.S.C. 254(c)), is amended by adding the following new sentences at the end thereof: “Under regulations to be prescribed by the Administrator, however, such clause may be omitted from contracts with foreign contractors or foreign subcontractors if the agency head determines, with the concurrence of the Comptroller General of the United States or his designee, that the omission will serve the best interests of the United States. However, the concurrence of the
Exceptional conditions.
Comptroller General of the United States or his designee is not required for the omission of such clause—
“(1) where the contractor or subcontractor is a foreign government or agency thereof or is precluded by the laws of the country involved from making its books, documents, papers, or records available for examination; and
“(2) where the agency head determines, after taking into account the price and availability of the property or services from United States sources, that the public interest would be best served by the omission of the clause.
If the clause is omitted based on a determination under clause (2) a
Report to Congress.
written report shall be furnished to the Congress. The power of the agency head to make the determination specified in the preceding sentences shall not be delegable.”
Sec. 3.
Section 3(b) of the Act of August 28, 1958 (50 U.S.C. 1433(b)) is amended by adding the following new sentences at the
end thereof: “Under regulations to be prescribed by the President, however, such clause may be omitted from contracts with foreign contractors or foreign subcontractors if the agency head determines, with the concurrence of the Comptroller General of the United States or his designee, that the omission will serve the best interests of the United States. However, the concurrence of the Comptroller General of the
Exceptional conditions.
United States or his designee is not required for the omission of such clause—
where the contractor or subcontractor is a foreign government or agency thereof or is precluded by the laws of the country involved from making its books, documents, papers, or records available for examination; and
where the agency head determines, after taking into account the price and availability of the property or services from United States sources, that the public interest would be best served by the omission of the clause.
If the clause is omitted based on a determination under clause (2), a
Report to Congress.
written report shall be furnished to the Congress.”
Approved September 27, 1966.