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EXECUTIVE ORDER 10789 partmental Contract Adjustment Board. AUTHORIZING AGENCIES OF THE GOVERN

3. The contracts hereby authorized to

be made shall include agreements of all MENT TO EXERCISE CERTAIN CONTRACT

kinds (whether in the form of letters ING AUTHORITY IN CONNECTION WITH NATIONAL-DEFENSE FUNCTIONS AND PRE

of intent, purchase orders, or otherwise) SCRIBING REGULATIONS GOVERNING THE

for all types and kinds of property or

services necessary, appropriate, or conEXERCISE OF SUCH AUTHORITY

venient for the national defense, or for By virtue of the authority vested in the invention, development, or producme by the act of August 28, 1958, 72 Stat. tion of, or research concerning, any such 972, hereinafter called the act, and as property or services, including, but not President of the United States, and in limited to, aircraft, missiles, buildings, view of the existing national emergency vessels, arms, armament, equipment or declared by Proclamation No. 2914 of supplies of any kind, or any portion December 16, 1950, and deeming that thereof, including plans, spare parts and such action will facilitate the national equipment therefor, materials, supplies, defense, it is hereby ordered as follows: facilities, utilities, machinery, machine PART 1-DEPARTMENT O DEFENSE

tools, and any other equipment without

any restriction of any kind as to type, Under such regulations, which shall be character, location, or form. uniform to the extent practicable, as may 4. The Department of Defense may by be prescribed or approved by the Secre- agreement modify or amend or settle tary of Defense:

claims under contracts heretofore or 1. The Department of Defense is au- hereafter made, may make advance paythorized, within the limits of the ments upon such contracts of any poramounts appropriated and the contract tion of the contract price, and may enter authorization provided therefor, to enter into agreements with contractors or obinto contracts and into amendments or ligors modifying or releasing accrued modifications of contracts heretofore or obligations of any sort, including accrued hereafter made, and to make advance liquidated damages or liability under payments thereon, without regard to the surety or other bonds. Amendments or provisions of law relating to the making, modifications of contracts may be with performance, amendment, or modifica- or without consideration and may be tion of contracts, whenever, in the judg- utilized to accomplish the same things ment of the Secretary of Defense, the as any original contract could have acSecretary of the Army, the Secretary of complished hereunder, irrespective of the Navy, or the Secretary of the Air the time or circumstances of the making, Force, or the duly authorized represent- or the form, of the contract amended or ative of any such Secretary, the national modified, or of the amending or modifydefense will be facilitated thereby. ing contract, and irrespective of rights

2. The Secretaries of Defense, the which may have accrued under the conArmy, the Navy, and the Air Force, re- tract or the amendments or modificaspectively, may exercise the authority

tians thereof. herein conferred and, in their discretion

5. Proper records of all actions taken and by their direction, may delegate such

under the authority of the act shall be authority to any other military or civilian

maintained within the Department of

Defense. The Secretaries of Defense, officers or officials of their respective

the Army, the Navy, and the Air Force departments, and may confer upon any

shall make such records available for such military or civilian officers or offi

public inspection except to the extent cials the power to make further delega- that they, or their duly authorized repretions of such authority within their re- sentatives, may respectively deem the spective commands or organizations: disclosure of information therein to be Provider, that the authority herein con- detrimental to the national security. ferred shall not be utilized to obligate

6. The Department of Defense shall, the United States in an amount in ex

by March 15 of each year, report to the cess of $50,000 without approval by an

Congress all actions taken within that official at or above the level of an Assist

department under the authority of the ant Secretary or his Deputy, or by a de

act during the preceding calendar year.

With respect to actions which involve (Emphasis added.)

actual or potential cost to the United

States in excess of $50,000, the report 13 CFR, 1949-1953 Comp.

shall (except as the disclosure of such

information may be deemed to be detrimental to the national security)

(a) name the contractor;

(b) state the actual cost or estimated potential cost involved;

(c) describe the property or services involved; and

(d) state further the circumstances justifying the action taken.

7. There shall be no discrimination in any act performed hereunder against any person on the ground of race, religion, color, or national origin, and all contracts entered into, amended, or modified hereunder shall contain such nondiscrimination provision as otherwise may be required by statute or Executive order.

8. No claim against the United States arising under any purchase or contract made under the authority of the act and this order shall be assigned except in accordance with the Assignment of Claims Act of 1940 (54 Stat. 1029), as amended.

9. Advance payments shall be made hereunder only upon obtaining adequate security.

10. Every contract entered into, amended, or modified pursuant to this order shall contain a warranty by the contractor in substantially the following terms:

“The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except bona-fide employees or bona-fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract without liability or, in its discretion, to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee."

11. All contracts entered into, amended, or modified pursuant to authority of this order 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.

12. Nothing herein contained shall be construed to constitute authorization hereunder for

(a) the use of the cost-plus-a-percentage-of-cost system of contracting;

(b) any contract in violation of cxisting law relating to limitation of profits or fees;

(c) the negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding;

(d) the waiver of any bid, payment, performance, or other bond required by law';

(e) the amendment of a contract negotiated under section 2304 (a) (15) of title 10 of the United States Code to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder; or

(f) the formalization of an informal commitment, unless the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, or the Secretary of the Air Force, or the duly authorized representative of any such Secretary, finds that at the time the commitment was made it was impracticable to use normal procurement procedures.

13. The provisions of the Walsh-Healey Act (49 Stat. 2036), as amended, the Davis-Bacon Act (49 Stat. 1011), as amended, the Copeland Act (48 Stat. 948), as amended, and the Eight Hour Law (37 Stat. 137), as amended, if otherwise applicable, shall apply to contracts made and performed under the authority of this order.

14. Nothing herein contained shall prejudice anything heretofore done under Executive Order No. 9001 'of December 27, 1941, or Executive Order No. 102103 of February 2, 1951, or any amendments or extensions thereof, or the continuance in force of an action heretofore taken under those orders or any amendments or extensions thereof.

15. Nothing herein contained shall prejudice any other authority which the Department of Defense may have to enter into, amend, or modify contracts, and to make advance payments.

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33 CFR, 1943 Cum. Supp. '3 CFR, 1949–1953 Comp.

PART II-EXTENSION OF PROVISIONS OF

EXECUTIVE ORDER 10824
PARAGRAPHS 1-14

DESIGNATING THE NATIONAL AERONAUTICS

AND SPACE ADMINISTRATION AS AN

AGENCY TO HAVE CERTAIN CONTRACTUAL 21. Subject to the limitations and

AUTHORITY UNDER THE ASSIGNMENT OF regulations contained in paragraphs 1 to 14, inclusive, hereof, and under any regu

CLAIMS ACT OF 1940, AS AMENDED lations prescribed by him in pursuance of

WHEREAS the Assignment of Claims the provisions of paragraph 22 hereof,

Act of 1940, 54 Stat. 1029, as amended by the head of each of the following-named

the act of May 15, 1951, 65 Stat. 41 (31 agencies is authorized to perform or ex

U.S.C. 203), contains the following proercise as to his agency, independently of

visions: any Secretary referred to in the said Any contract of the Department of paragraphs 1 to 14, all the functions

Defense, the General Services Adminisand authority vested by those para

tration, the Atomic Energy Commission, graphs in the Secretaries mentioned

or any other department or agency of the therein:

United States designated by the PresiDepartment of the Treasury

dent, except any such contract under Department of the Interior

which full payment has been made, may,

in time of war or national emergency Department of Agriculture Department of Commerce

proclaimed by the President (including Atomic Energy Commission

the national emergency proclaimed DeGeneral Services Administration

cember 16, 1950) or by Act or joint resOfice of Civil and Defense Mobiliza

olution of the Congress and until such

war tion

or national emergency has been

terminated in such manner, provide or National Aeronautics and Space Administration

be amended without consideration to Federal Aviation Agency

provide that payments to be made to the Tennessee Valley Authority

assignee of any moneys due or to be

come due under such contract shall not Government Printing Office

be subject to reduction or set-off, and 22. The head of each agency named in

if such provision or one to the same genparagraph 21 hereof is authorized to prescribe regulations governing the carry

eral effect has been at any time hereto

fore or is hereafter included or inserted ing out of the functions and authority

in any such contract, payments to be vested with respect to his agency by the

made thereafter to an assignee of any provisions of paragraph 21 hereof. Such

moneys due or to become due under such regulations shall, to the extent practi

contract, whether during or after such cable, be uniform with the regulations

war or emergency, shall not be subject prescribed or approved by the Secretary

to reduction or set-off for any liability of Defense under the provisions of Part

of any nature of the assignor to the I of this order..

United States or any department or 23. Nothing contained herein shall

agency thereof which arises independprejudice any other authority which any

ently of such contract, or hereafter for agency named in paragraph 21 hereof

any liability of the assignor on account may have to enter into, amend, or modify

of (1) renegotiation under any renegocontracts and to make advance pay

tiation statute or under any statutory ments.

renegotiation article in the contract, (2) 24. Nothing contained in this part

fines, (3) penalties (which term does not shall constitute authorization there.

include amounts which may be collected under for the amendment of a contract

or withheld from the assignor in accordnegotiated under section 302 (c) (14) of

ance with or for failure to comply with the Federal Property and Administrative the terms of the contract), or (4) taxes, Services Act of 1949 (63 Stat. 394), as social security contributions, or the withamended by section 2 (b) of the act of holding or nonwithholding of taxes or August 28, 1958, 72 Stat. 966, to increase social security contributions, whether the contract price to an amount higher

arising from or independently of such than the lowest rejected bid of any

contract. responsible bidder.

AND WHEREAS it appear that it would be in the public interest to make

those provisions applicable to the NaDWIGHT D. EISENHOWER

(Emphasis added.) THE WHITE HOUSE, November 14, 1958.

131 U.S.C.A. $ 203.

traco

tional Aeronautics and Space Adminis

article in the contract, (2) ines, (3) penal. tration:

ties (which term does not include amounts NOW, THEREFORE, by virtue of the

which may be collected or withheld from

the assignor in accordance with or for failure authority vested in me by the above

to comply with the terms of the contract), or quoted statutory provisions, I hereby

(4) taxes, social security contributions, or designate the National Aeronautics and

the withholding or nonwithholding of taxes Space Administration as an agency of

or social security contributions, whether the United States to which such statu

arising from or independently of such contory provisions shall apply in the same manner and to the same extent that they apply to the Department of Defense, AND WHEREAS it appears that it the General Services Administration, would be in the public interest to make and the Atomic Energy Commission. those provisions applicable to the Fed

DWIGHT D. EISENHOWER eral Aviation Agency: THE WHITE HOUSE,

NOW, THEREFORE, by virtue of the May 29, 1959.

authority vested in me by the abovequoted statutory provisions, I hereby

designate the Federal Aviation Agency Executive Order 10840 as an agency of the United States to

which such statutory provisions shall DESIGNATING THE FEDERAL AVIA

apply in the same manner and to the TION AGENCY AS AN AGENCY TO same extent that they apply to the DeHAVE CERTAIN CONTRACTUAL AU. partment of Defense, the General ServTHORITY UNDER THE ASSIGNMENT

ices Administration, and the Atomic OF CLAIMS ACT OF 1940, AS

Energy Commission. AMENDED

DWIGHT D. EISENHOWER

THE WHITE HOUSE,
WHEREAS the Assignment of Claims
Act of 1940 (54 Stat. 1029) as amended

September 30, 1959.
by the act of May 15, 1951, 65 Stat. 41
(31 U.S.C. 203), contains the following
provisions:

Executive Order 10976 Any contract of the Department of Defense, the General Services Adininistration,

SUSPENSION OF THE EIGHT-HOUR the Atomic Energy Commission, or any other department or agency of the United States

LAW AS TO LABORERS AND designated by the President, except any such MECHANICS EMPLOYED BY THE contract under which full payment has been

NATIONAL AERONAUTICS AND made, may, in time of war or national emergency proclaimed by the President (includ.

SPACE ADMINISTRATION ing the national emergency proclaimed

WHEREAS by section 1 of the act of December 16, 1950 or by Act or ont resolution of the Congress and until such war or

August 1, 1892, 27 Stat. 340, as amended national emergency has been terminated in

by the act of March 3, 1913, 37 Stat. such manner, provide or be amended with- 726 (40 U.S.C. 321), the service or emout consideration to provide that payments ployment of all laborers and mechanics to be made to the assignee of any moneys employed by the Government of the due or to become due under such contract

United States upon any public work of shall not be subject to reduction or set-oil, and if such provision or one to the same

the United States is limited to eight general effect has been at any time hereto

hours in any one calendar day, except fore or is hereafter included or inserted in

in case of extraordinary emergency; any such contract, payments to be made

and thereafter to an assignee of any moneys due

WHEREAS by Proclamation No. 2914' or to become due under such contract, of December 16, 1950, the President whether during or after such war or emer- proclaimed the existence of a national gency, shall not be subject to reduction or

emergency and that emergency still set-off for any liability of any nature of the assignor to the United States or any depart

exists; and ment or agency thereof which arises inde

WHEREAS the attainment and mainpendently of such contract, or hereafter for

tenance by this Nation of a clearly any liability of the assignor on account of

leading role in aeronautical and space (1) renegotiation under any renegotiation statute or under any statutory renegotiation

(Emphasis added.) (Emphasis added.)

13 CFR, 1949–1953 Comp., p. 99.

1

or

achievement has become a vital national August 1, 1892, as amended by the said objective; and

act of March 3, 1913, and that the seryWHEREAS in order to achieve this ice employment of laborers and objective it is essential to conduct the mechanics employed by the National Nation's aeronautical and space program Aeronautics and Space Administration with a major national commitment of on any public work need not be limited manpower, material, and facilities, and

to eight hours in any one calendar day, to pursue this program with all possible Provided, That overtime compensation speed and efficiency; and

at no less than time and one-half shall WHEREAS the development and ad.

be paid in accordance with applicable ministration of our national aeronau- law to all laborers and mechanics so tical and space program are the primary employed. responsibility of the National Aeronautics This order shall remain in force and and Space Administration:

eifect during the period of the national NOW, THEREFORE, by virtue of the emergency declared by the said Proclaauthority vested in me as President of mation No. 2914 unless sooner terminated the United States, I hereby find and by Executive order of the President. declare that as to public work being

JOHN F. KENNEDY performed by the National Aeronautics and Space Administration an extraordi- THE WHITE HOUSE, nary emergency exists within the mean

November 15, 1961. ing of section 1 of the said act of

(Emphasis added.)

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