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5.1.4E

REDELEGA

TION OF AUTHORITY TO APPROVE

&

EXECUTE CONSTRUCTION CONTRACTS (Cont.)

AMOUNT GOVERNING AUTHORITY TO AWARD

LAWS-

Construction (Through Award)

CHAP. 5.1 CONTRACTING OFFICER'S DUTIES AND AUTHORITIES

E. Change orders, extra work orders, or modifications of contracts shall be executed only by the contracting officer (or his successor or his duly authorized representative) who executed the basic contracts affected by such changes.

F.

The powers and authorities redelegated for the execution of construction contracts, including the approval and execution of change orders, extra work orders, etc., will not extend to any cost-plus-a-fixed-fee contract. G. When a Regional Director or the Chief Engineer receives an otherwise acceptable bid that is in excess of the limitation of his contracting authority, an abstract of the bids, a statement of all qualifications and stipulations made by the bidders, financial reports on the bidders, and any other pertinent data together with the recommendation of the contracting officer as to award shall be sent to the Commissioner, Washington, D. C., for consideration. If approved, the Commissioner will authorize the contracting officer to execute the contract in whatever amount may be involved.

H.

Otherwise acceptable bids received by contracting officers, other than the Chief Engineer or a Regional Director, which are in amounts in excess of their contracting authority, shall be forwarded to the appropriate higher administrative level for award or referral to the Commissioner, as may be necessary.

.5 If the amount of a contract exceeds $200,000, but by the use of Government Bills of Lading for materials furnished by the contractor the net amount to be paid the contractor will be $200,000 or less, the award of the contract must be authorized by the Commissioner. The amount governing the prerogative to award a contract is the accepted bid price.

GOVERNMENT .6 The following is a summary of the more important laws and executive orders CONTRACTS affecting Government contracts and their applicability:

Eight-Hour

Law

Prevailing
Wage Law
(Davis-Bacon
Act)

A. Act of June 19, 1912, 37 Stat. 137, 40 U.S.C. 321-326. This Act requires
that every contract to which the United States is a party and which may
require the employment of laborers or mechanics shall contain a provision
that no laborer or mechanic doing any part of the work contemplated by the
contract shall be required or permitted to work more than 8 hours in
any one day upon such work. An exception was provided to this by amend-
ment dated September 9, 1940 (54 Stat. 884), permitting work in excess of
8 hours in any calendar day so long as time and one-half is paid for all
such overtime. A penalty of $5 per day for each day of violation for each
employee involved shall be assessed against the contractor if a violation
occurs. This law is not applicable to purchase of materials or equipment
or in cases of emergency caused by fire, flood, danger to life or property,
or to any other extraordinary event on account of which the President shall
subsequently declare the violation to be excusable. However, the installa-
tion of materials or equipment at the job site is subject to the Eight-Hour
Law. See Paragraph 6.3.5 for additional information on the Eight-Hour Law.
Act of March 3, 1931, amended August 30, 1935, c. 825, 49 Stat. 1011, 40
U.S.C. 276a. This Act requires that advertised specifications for every
contract in excess of $2,000 to which the United States is a party for
construction, alteration and/or repair of public buildings and public works
within the United States and which requires the employment of mechanics
or laborers shall contain a provision stating the minimum wages to be paid
various classes of laborers and mechanics which shall be based upon the
wages determined by the Secretary of Labor to be the prevailing wages in
the area in which the work is to be performed, and each contractor or sub-
contractor is required to make payment in full of wages at least once a week
without deduction or rebate. Application shall be made to the Solicitor of the
Department of Labor for wage rate determinations to be included in the
specifications and such specifications shall be issued not more than 90 days

B.

Construction (Through Award)

CHAP. 5.1 CONTRACTING OFFICER'S DUTIES AND AUTHORITIES

after such wage rate determinations have been received from the Labor Department. See Subparagraph 5.2.16B, "Rates of Wages," for procedures to follow in obtaining wage rate determinations.

C. Act of June 13, 1934, c. 482, 48 Stat. 948, 40 U.S.C. 276b and c. This Act provides that whoever shall induce a person employed in the construction of any public building or work financed in whole or in part by United States funds, or loans or grants from the United States, to give up any part of the compensation to which he is entitled under the contract of employment by force, intimidation, threat of procuring dismissal from such employment, or by any other means whatsoever shall be fined not more than $5,000 or imprisoned not more than 5 years, or both. (See Paragraph 6.3.4 for additional information on the Copeland Act.)

D.

E.

Act of February 23, 1887, c. 213, 24 Stat. 411 18 U.S.C. 708-709. This Act forbids the contracting-out of the labor of United States prisoners.

Act of June 30, 1936, c. 881, 49 Stat. 2036, 41 U.S.C. 35-45. This Act requires that in any contract made and entered into by any executive department or other agency of the United States for the furnishing of materials, supplies, articles, and equipment in any amount exceeding $10,000 there shall be included the following representations and stipulations:

(1) That the contractor is the manufacturer of or regular dealer in the materials, supplies, or equipment to be manufactured or used in the performance of the contract.

(2) That all persons employed by the contractor for furnishing said materials, supplies, or equipment will be paid without subsequent deduction or rebate on any account, not less than the minimum wages as determined by the Secretary of Labor to be the prevailing wages for persons employed in similar work or in the particular or similar industries currently operating in the locality in which the materials, supplies, or equipment are to be manufactured or furnished under the contract.

(3) That no person employed by the contractor on the contract shall be permitted to work in excess of 8 hours in any 1 one day or in excess of 40 hours in any one week, except that work in excess of 8 hours in any calendar day or 40 hours in any week may be performed provided that such time in excess of 8 hours in any calendar day or 40 hours in any week shall be paid for at not less than 1-1/2 times the basic hourly rate.

(4) That no male person under 16 years of age and no female person under 18 years of age and no convict labor shall be employed by the contractor in the manufacture or production of any of the materials, supplies, or equipment included in such contract.

(5) That no part of such contract will be performed in any plants or surroundings or under working conditions which are unsanitary or hazardous or dangerous to the health and safety of the employees engaged in the performance of the contract.

5.1.6C

AntiKickback

Law

(Copeland Act)

Under Section 6 of the Act the Secretary of Labor may grant exceptions
upon a written finding by the head of the contracting agency or department
that the inclusion in the contract of the stipulations of the Act will seriously
impair the conduct of Government business. (See also Subparagraph 5.2.16H)

F. Act of August 24, 1935, 49 Stat, 793, 40 U.S.C, 270a. This Act requires
that before the award of any contract in excess of $2,000 for the construc-
tion, alteration, or repair of any public building or works, the contractor
shall furnish a performance bond for the protection of the Government and
a payment bond for the protection of persons supplying labor and material
in the prosecution of the work. (See also Paragraphs 5.2.21 to 5.2.25.)

Convict Labor Law

Public Contracts Act (WalshHealey Act)

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5.1.6G

Domestic

Preference
Act (Buy-
American
Act)

Member of
Congress
Act

AntiDiscrimination Clause

Construction (Through Award)

CHAP. 5.1 CONTRACTING OFFICER'S DUTIES AND AUTHORITIES

G. Act of March 3, 1933, 47 Stat. 1520, 41 U.S.C. 10a and b. This Act requires
that unless the head of the department or independent establishment con-
cerned shall determine it to be inconsistent with the public interest or the
cost to be unreasonable, only such unmanufactured articles, materials, and
supplies as have been mined or produced in the United States and only such
manufactured articles, materials, and supplies as have been manufactured
in the United States substantially, all from articles, materials, or supplies,
mined, produced, or manufactured, as the case may be, in the United States
shall be acquired for public use. Exception is provided where such
articles, materials, or supplies are not mined, produced, or manufactured
in the United States in sufficient and reasonably available commercial
quantities and of a satisfactory quality; and every contract for construction,
alteration, or repair of any public building or public work in the United
States shall contain a provision that in the performance of the work only
such materials, articles, or supplies shall be used as have been manufactured
mined, or produced in the United States. (See also Paragraph 5.2.14.)

H. R.S. 3741, 2 Stat. 484, 41 U.S.C. 22. This act provides that in every
contract or agreement to be made or entered into, or accepted by or on
behalf of the United States, there shall be inserted an express condition
that no member or delegate to Congress shall be admitted to any share or
part of such contract or agreement, or to any benefit to arise thereupon.
Executive Order No. 9346 of May 27, 1943, 8 Fed. Reg. 7183. This
executive order requires that all contracting agencies of the United States
shall include in all contracts negotiated or renegotiated by them a provi-
sion obligating the contractor not to discriminate against any employee or
applicant for employment because of race, creed, color, or national origin
and requiring him to include a similar provision in all subcontracts.
Chapters 5.2 and 5.3, following, pertain to procedures and requirements for
preparation of construction specifications and contracts. Standard Form 23,
Contract (Construction), contains provisions covering the Eight-Hour Law, the
Davis-Bacon Act, the Anti-Kickback Law, the Member of Congress Act, the
Convict Labor Law, and the Domestic Preference Act. Minimum wage rates
determined in accordance with the provisions of the Davis-Bacon Act must be
incorporated in the specifications for any construction contract exceeding
$2,000. Whenever Regional Counsel are in doubt on any legal question as to
the form to be used or the applicable laws, the question shall be referred to the
Chief, Denver Legal Division.

BUREAU OF RECLAMATION MANUAL

Volume X Design and Construction

Part 5 Specifications and Contracts for Construction (Through Award) Chapter 5.2 Specifications and Contract Forms and Provisions

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