
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 41USC10d]

 
                       TITLE 41--PUBLIC CONTRACTS
 
                      CHAPTER 1--GENERAL PROVISIONS
 
Sec. 10d. Clarification of Congressional intent regarding 
        sections 10a and 10b(a)
        
    In order to clarify the original intent of Congress, hereafter, 
section 10a of this title and that part of section 10b(a) of this title 
preceding the words ``Provided, however,'' shall be regarded as 
requiring the purchase, for public use within the United States, of 
articles, materials, or supplies manufactured in the United States in 
sufficient and reasonably available commercial quantities and of a 
satisfactory quality, unless the head of the department or independent 
establishment concerned shall determine their purchase to be 
inconsistent with the public interest or their cost to be unreasonable.

(Oct. 29, 1949, ch. 787, title VI, Sec. 633, 63 Stat. 1024; Pub. L. 100-
418, title VII, Sec. 7005(d), Aug. 23, 1988, 102 Stat. 1553.)


                               Amendments

    1988--Pub. L. 100-418, Secs. 7004, 7005(d), temporarily substituted 
``Federal agency'' for ``department or independent establishment''. See 
Termination Date of 1988 Amendment note below.


                   Termination Date of 1988 Amendment

    Amendment by Pub. L. 100-418 to cease to be effective on Apr. 30, 
1996, unless Congress, after reviewing report required by former section 
2515(k) of Title 19, Customs Duties, extends such date, see section 7004 
of Pub. L. 100-418, set out as an Effective and Termination Dates of 
1988 Amendment note under section 10a of this title.

        Ex. Ord. No. 10582. Uniform Procedures for Determinations

    Ex. Ord. No. 10582, Dec. 17, 1954, 19 F.R. 8723, as amended by Ex. 
Ord. No. 11051, Sept. 27, 1962, 27 F.R. 9683; Ex. Ord. No. 12148, July 
20, 1979, 44 F.R. 43239; Ex. Ord. No. 12608, Sept. 9, 1987, 52 F.R. 
34617, provided:
    Section 1. As used in this order, (a) the term ``materials'' 
includes articles and supplies, (b) the term ``executive agency'' 
includes executive department, independent establishment, and other 
instrumentality of the executive branch of the Government, and (c) the 
term ``bid or offered price of materials of foreign origin'' means the 
bid or offered price of such materials delivered at the place specified 
in the invitation to bid including applicable duty and all costs 
incurred after arrival in the United States.
    Sec. 2. (a) For the purposes of this order materials shall be 
considered to be of foreign origin if the cost of the foreign products 
used in such materials constitutes fifty per centum or more of the cost 
of all the products used in such materials.
    (b) For the purposes of the said act of March 3, 1933 [see Tables 
for classification], and the other laws referred to in the first 
paragraph of the preamble of this order, the bid or offered price of 
materials of domestic origin shall be deemed to be unreasonable, or the 
purchase of such materials shall be deemed to be inconsistent with the 
public interest, if the bid or offered price thereof exceeds the sum of 
the bid or offered price of like materials of foreign origin and a 
differential computed as provided in subsection (c) of this section.
    (c) The executive agency concerned shall in each instance determine 
the amount of the differential referred to in subsection (b) of this 
section on the basis of one of the following-described formulas, subject 
to the terms thereof:
    (1) The sum determined by computing six per centum of the bid or 
offered price of materials of foreign origin.
    (2) The sum determined by computing ten per centum of the bid or 
offered price of materials of foreign origin exclusive of applicable 
duty and all costs incurred after arrival in the United States: provided 
that when the bid or offered price of materials of foreign origin 
amounts to less than $25,000, the sum shall be determined by computing 
ten per centum of such price exclusive only of applicable duty.
    Sec. 3. Nothing in this order shall affect the authority or 
responsibility of an executive agency:
    (a) To reject any bid or offer for reasons of the national interest 
not described or referred to in this order; or
    (b) To place a fair proportion of the total purchases with small 
business concerns in accordance with section 302(b) of the Federal 
Property and Administrative Services Act of 1949, as amended [41 U.S.C. 
252(b)], section 2(b) of the Armed Services Procurement Act of 1947, as 
amended [41 U.S.C. 151(b)], and section 202 of the Small Business Act of 
1953 [15 U.S.C. 631]; or
    (c) To reject a bid or offer to furnish material of foreign origin 
in any situation in which the domestic supplier offering the lowest 
price for furnishing the desired materials undertakes to produce 
substantially all of such materials in areas of substantial 
unemployment, as determined by the Secretary of Labor in accordance with 
such appropriate regulations as he may establish and during such period 
as the President may determine that it is in the national interest to 
provide to such areas preference in the award of Government contracts: 
Provided, that nothing in this section shall prevent the rejection of a 
bid or offered price which is excessive; or
    (d) To reject any bid or offer for materials of foreign origin if 
such rejection is necessary to protect essential national-security 
interests after receiving advice with respect thereto from the President 
or from the Director of the Federal Emergency Management Agency. In 
providing this advice the Director shall be governed by the principle 
that exceptions under this section shall be made only upon a clear 
showing that the payment of a greater differential than the procedures 
of this section generally prescribe is justified by consideration of 
national security.
    Sec. 4. The head of each executive agency shall issue such 
regulations as may be necessary to insure that procurement practices 
under his jurisdiction conform to the provisions of this order.
    Sec. 5. This order shall apply only to contracts entered into after 
the date hereof. In any case in which the head of an executive agency 
proposing to purchase domestic materials determines that a greater 
differential than that provided in this order between the cost of such 
materials of domestic origin and materials of foreign origin is not 
unreasonable or that the purchase of materials of domestic origin is not 
inconsistent with the public interest, this order shall not apply. A 
written report of the facts of each case in which such a determination 
is made shall be submitted to the President through the Director of the 
Office of Management and Budget by the official making the determination 
within 30 days thereafter.

                  Section Referred to in Other Sections

    This section is referred to in title 15 section 5528.
