1. U.S. Code
  2. title 41
  3. subtitle II
  4. chapter 63
  5. § 6305

Collapse to view only § 6305. Prohibition on transfer of contract and certain allowable assignments

§ 6301. Authorization requirement
(a)In General.—A contract or purchase on behalf of the Federal Government shall not be made unless the contract or purchase is authorized by law or is under an appropriation adequate to its fulfillment.
(b)Exception.—
(1)Definition.—In this subsection, the term “defined Secretary” means—
(A) the Secretary of Defense; or
(B) the Secretary of Homeland Security with respect to the Coast Guard when the Coast Guard is not operating as a service in the Navy.
(2)In general.—Subsection (a) does not apply to a contract or purchase made by a defined Secretary for clothing, subsistence, forage, fuel, quarters, transportation, or medical and hospital supplies.
(3)Current year limitation.—A contract or purchase made by a defined Secretary under this subsection may not exceed the necessities of the current year.
(4)Reports.—The defined Secretary shall immediately advise Congress when authority is exercised under this subsection. The defined Secretary shall report quarterly on the estimated obligations incurred pursuant to the authority granted in this subsection.
(c)Special Rule for Purchase of Land.—Land may not be purchased by the Federal Government unless the purchase is authorized by law.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3803; Pub. L. 111–281, title IX, § 903(a)(4), Oct. 15, 2010, 124 Stat. 3010.)

CITE AS: 41 USC 6301

§ 6302. Contracts for fuel made by Secretary of the Army

The Secretary of the Army, when the Secretary believes it is in the interest of the United States, may enter into contracts and incur obligations for fuel in sufficient quantities to meet the requirements for one year without regard to the current fiscal year. Amounts appropriated for the fiscal year in which the contract is made or amounts appropriated or which may be appropriated for the following fiscal year may be used to pay for supplies delivered under a contract made pursuant to this section.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3804.)

CITE AS: 41 USC 6302

§ 6303. Certain contracts limited to appropriated amounts

A contract to erect, repair, or furnish a public building, or to make any public improvement, shall not be made on terms requiring the Federal Government to pay more than the amount specifically appropriated for the activity covered by the contract.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3804.)

CITE AS: 41 USC 6303

§ 6304. Certain contracts limited to one-year term

Except as otherwise provided, an executive department shall not make a contract for stationery or other supplies for a term longer than one year from the time the contract is made.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3804.)

CITE AS: 41 USC 6304

§ 6305. Prohibition on transfer of contract and certain allowable assignments
(a)General Prohibition on Transfer of Contracts.—The party to whom the Federal Government gives a contract or order may not transfer the contract or order, or any interest in the contract or order, to another party. A purported transfer in violation of this subsection annuls the contract or order so far as the Federal Government is concerned, except that all rights of action for breach of contract are reserved to the Federal Government.
(b)Assignment.—
(1)In general.—Notwithstanding subsection (a) and in accordance with the requirements of this subsection, amounts due from the Federal Government under a contract may be assigned to a bank, trust company, Federal lending agency, or other financing institution.
(2)Minimum amount.—This subsection applies only to a contract under which the aggregate amounts due from the Federal Government total at least $1,000.
(3)Accord with contract terms.—Assignment may not be made under this subsection if the contract forbids the assignment.
(4)Full balance due.—Unless otherwise expressly permitted by the contract, an assignment under this subsection must cover the balance of all amounts due from the Federal Government under the contract.
(5)Single assignment.—Unless otherwise expressly permitted by the contract, an assignment under this subsection may not be made to more than one party or be subject to further assignment, except that assignment may be made to one party as agent or trustee for 2 or more parties participating in the financing.
(6)Written notice.—The assignee of an assignment under this subsection shall file written notice of the assignment and a true copy of the instrument of assignment with—
(A) the contracting officer or head of the officer’s department or agency;
(B) the surety on any bond connected with the contract; and
(C) the disbursing officer, if any, designated in the contract to make payment.
(7)Validity.—Notwithstanding any law to the contrary governing the validity of assignments, an assignment under this subsection is a valid assignment for all purposes.
(8)No refund to cover assignor’s liability.—The assignee of an assignment under this subsection is not liable to make any refund to the Federal Government because of an assignor’s liability to the Federal Government, whether that liability arises from the contract or independently.
(9)Avoiding reduction or setoff with certain contracts.—
(A)Contract provision.—A contract of the Department of Defense, the General Services Administration, the Department of Energy, or another department or agency of the Federal Government designated by the President may, on a determination of need by the President, provide or be amended without consideration to provide that payments made to an assignee under the contract are not subject to reduction or setoff. Each determination of need by the President under this subparagraph shall be published in the Federal Register.
(B)Carrying out contract provision.—When a “no reduction or setoff” provision as described in subparagraph (A) is included in a contract, payments to the assignee are not subject to reduction or setoff for an assignor’s liability arising—
(i) independently of the contract;
(ii) on account of renegotiation under a renegotiation statute or under a statutory renegotiation article in the contract;
(iii) on account of fines;
(iv) on account of penalties; or
(v) on account of taxes, social security contributions, or the withholding or non-withholding of taxes or social security contributions, whether arising from or independently of the contract.
(C)Limitation.—Subparagraph (B)(iv) does not apply to amounts which may be collected or withheld from the assignor in accordance with or for failure to comply with the terms of the contract.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3804.)

CITE AS: 41 USC 6305

§ 6306. Prohibition on Members of Congress making contracts with Federal Government
(a)In General.—A Member of Congress may not enter into or benefit from a contract or agreement or any part of a contract or agreement with the Federal Government.
(b)Exemptions.—
(1)In general.—Subsection (a) does not apply to contracts that the Secretary of Agriculture may enter into with farmers.
(2)Certain acts.—Subsection (a) does not apply to a contract entered into under—
(A) the Agricultural Adjustment Act (7 U.S.C. 601 et seq.);
(B) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); or
(C) the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.).
(3)Public record.—An exemption under this subsection shall be made a matter of public record.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3805.)

CITE AS: 41 USC 6306

§ 6307. Contracts with Federal Government-owned establishments and availability of appropriations

An order or contract placed with a Federal Government-owned establishment for work, material, or the manufacture of material pertaining to an approved project is deemed to be an obligation in the same manner that a similar order or contract placed with a commercial manufacturer or private contractor is an obligation. Appropriations remain available to pay an obligation to a Federal Government-owned establishment just as appropriations remain available to pay an obligation to a commercial manufacturer or private contractor.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3806.)

CITE AS: 41 USC 6307

§ 6308. Contracts for transportation of Federal Government securities

When practicable, a contract for transporting bullion, cash, or securities of the Federal Government shall be awarded to the lowest responsible bidder after notice to all parties with means of transportation.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3806.)

CITE AS: 41 USC 6308

§ 6309. Honorable discharge certificate in lieu of birth certificate
(a)In General.—An employer described in subsection (b) may not deny employment, on account of failure to produce a birth certificate, to an individual who submits, in lieu of the birth certificate, an honorable discharge certificate (or certificate issued in lieu of an honorable discharge certificate) from the Army, Air Force, Navy, Marine Corps, Space Force, or Coast Guard of the United States, unless the honorable discharge certificate shows on its face that the individual may have been an alien at the time of its issuance.
(b)Employers to Which Section Applies.—An employer referred to in subsection (a) is an employer—
(1) engaged in—
(A) the production, maintenance, or storage of arms, armament, ammunition, implements of war, munitions, machinery, tools, clothing, food, fuel, or any articles or supplies, or parts or ingredients of any articles or supplies; or
(B) the construction, reconstruction, repair, or installation of a building, plant, structure, or facility; and
(2) engaged in the activity described in paragraph (1) under—
(A) a contract with the Federal Government; or
(B) any contract that the President, the Secretary of the Army, the Secretary of the Air Force, the Secretary of the Navy, or the Secretary of the Department in which the Coast Guard is operating certifies to the employer to be necessary to the national defense.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3806; Pub. L. 116–283, div. A, title IX, § 927(e), Jan. 1, 2021, 134 Stat. 3832.)

CITE AS: 41 USC 6309

§ 6310. Requirement for agencies to buy domestically made United States flags
(a)Requirement.—Except as provided in subsections (b) through (d), funds appropriated or otherwise available to an agency may not be used for the procurement of any flag of the United States, unless such flag has been 100 percent manufactured in the United States from articles, materials, or supplies that have been grown or 100 percent produced or manufactured in the United States.
(b)Availability Exception.—Subsection (a) does not apply to the extent that the head of the agency concerned determines that satisfactory quality and sufficient quantity of a flag described in such subsection cannot be procured as and when needed at United States market prices.
(c)Exception for Certain Procurements.—Subsection (a) does not apply to the following:
(1) Procurements by vessels in foreign waters.
(2) Procurements for resale purposes in any military commissary, military exchange, or nonappropriated fund instrumentality operated by an agency.
(3) Procurements for amounts less than the simplified acquisition threshold.
(d)Presidential Waiver.—
(1)In general.—The President may waive the requirement in subsection (a) if the President determines a waiver is necessary to comply with any trade agreement to which the United States is a party.
(2)Notice of waiver.—Not later than 30 days after granting a waiver under paragraph (1), the President shall publish a notice of the waiver in the Federal Register.
(e)Definitions.—In this section:
(1)Agency.—The term “agency” has the meaning given the term “executive agency” in section 102 of title 40.
(2)Simplified acquisition threshold.—The term “simplified acquisition threshold” has the meaning given that term in section 134.
(Added Pub. L. 118–74, § 2(a)(1), July 30, 2024, 138 Stat. 1505.)

CITE AS: 41 USC 6310