
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: 50USC1433]

 
                   TITLE 50--WAR AND NATIONAL DEFENSE
 
                 CHAPTER 29--NATIONAL DEFENSE CONTRACTS
 
Sec. 1433. Public record; examination of records by Comptroller 
        General; exemptions: exceptional conditions; reports to Congress
        
    (a) All actions under the authority of this chapter shall be made a 
matter of public record under regulations prescribed by the President 
and when deemed by him not to be detrimental to the national security.
    (b) All contracts entered into, amended, or modified pursuant to 
authority contained in this chapter 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. 
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 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 
written report shall be furnished to the Congress.

(Pub. L. 85-804, Sec. 3, Aug. 28, 1958, 72 Stat. 972; Pub. L. 89-607, 
Sec. 3, Sept. 27, 1966, 80 Stat. 851.)


                               Amendments

    1966--Subsec. (b). Pub. L. 89-607 provided for exemption of certain 
contracts with foreign contractors from the requirement for an 
examination-of-records clause, such determination to be reported to 
Congress.


                         Exemption of Functions

    Functions with respect to purchases authorized to be made outside 
the limits of the United States or the District of Columbia under the 
Foreign Assistance Act of 1961, as amended [see Short Title note set out 
under section 2151 of Title 22, Foreign Relations and Intercourse], as 
exempt, see Ex. Ord. No. 11223, eff. May 12, 1965, 30 F.R. 6635, set out 
under section 2393 of Title 22.


                           Foreign Contractors

    Secretaries of Defense, Army, Navy, or Air Force, or their 
designees, to determine, prior to exercising the authority provided in 
the amendment by Pub. L. 89-607 to exempt certain contracts with foreign 
contractors from the requirement of an examination-of-records clause, 
that all reasonable efforts have been made to include such examination-
of-records clause, as required by par. 11 of Part I of Ex. Ord. No. 
10789, and that alternate sources of supply are not reasonably 
available, see par. 11 of Part I of Ex. Ord. No. 10789, eff. Nov. 14, 
1958, 23 F.R. 8897, as amended, set out under section 1431 of this 
title.


            Nonapplicability of the National Emergencies Act

    The provisions of the National Emergencies Act [see Short Title note 
set out under section 1601 of this title] shall not apply to the powers 
and authorities conferred by this section and actions taken hereunder, 
see section 1651(a)(6) of this title.
