§ 118. — Administration.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 41USC118]
TITLE 41--PUBLIC CONTRACTS
CHAPTER 2--TERMINATION OF WAR CONTRACTS
Sec. 118. Administration
(a) Records and forms
The Administrator of General Services shall establish policies for
such supervision and review within the contracting agencies of
termination settlements and interim financing as he deems necessary and
appropriate to prevent and detect fraud and to assure uniformity in
administration and to provide for expeditious settlements. For this
purpose he shall prescribe such records to be prepared by the
contracting agencies and by war contractors as he deems necessary in
connection with such settlements and interim financing. He shall seek to
reduce the amount of record keeping, reporting, and accounting in
connection with the settlement of termination claims and interim
financing to the minimum compatible with the reasonable protection of
the public interest. Each contracting agency shall prescribe forms for
use by war contractors in connection with termination settlements and
interim financing to the extent it deems necessary and feasible.
(b) Repealed. Oct. 31, 1951, ch. 654, Sec. 1(111), 65 Stat. 705
(c) Advance notice on cut-backs
The Administrator of General Services, by regulation, shall provide
for making available to any interested Government agency such advance
notice and other information on cut-backs in war production resulting
from terminations or failures to renew or extend war contracts, as he
deems necessary and appropriate.
(d) Investigations
The Administrator of General Services shall make such investigations
as he deems necessary or desirable in connection with termination
settlements and interim financing. For this purpose he may utilize the
facilities of any existing agencies and if he determines that the
facilities of existing agencies are inadequate, he may establish a unit
in the General Services Administration to supplement and facilitate the
work of existing agencies. He shall report to the Department of Justice
any information received by him indicating any fraudulent practices, for
appropriate action.
(e) Certification of fraudulent settlements to Department of Justice
Whenever any contracting agency or the Administrator of General
Services believes that any settlement was induced by fraud, the agency
or Administrator of General Services shall report the facts to the
Department of Justice. Thereupon, (1) the Department of Justice shall
make an investigation to determine whether such settlement was induced
by fraud, and (2) until the Department of Justice notifies the
contracting agency that in its opinion the facts do not support the
belief that the settlement was induced by fraud, the contracting agency,
by set-off or otherwise, may withhold, from amounts owing to the war
contractor by the United States under such settlement or otherwise, the
amount of the settlement, or the portion thereof, which, in its opinion,
was affected by the fraud. In any such case the Department of Justice
shall take such action as it deems appropriate to recover payments made
to such war contractor.
(July 1, 1944, ch. 358, Sec. 18, 58 Stat. 666; Ex. Ord. No. 9809,
Sec. 8, eff. Dec. 12, 1946, 11 F.R. 14281; 1947 Reorg. Plan No. 1,
Sec. 201, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951; June 30, 1949,
ch. 288, title I, Sec. 102(b), 63 Stat. 380; Oct. 31, 1951, ch. 654,
Sec. 1(111), 65 Stat. 705; Pub. L. 104-316, title I, Sec. 121(b), Oct.
19, 1996, 110 Stat. 3836.)
Amendments
1996--Subsec. (a). Pub. L. 104-316, in second sentence, struck out
``(1)'' after ``he shall prescribe'' and struck out ``; and (2) the
records in connection therewith to be transmitted to the General
Accounting Office'' before period at end.
1951--Subsec. (b). Act Oct. 31, 1951, struck out provisions which
related to preparation of information and reports regarding termination
of war contracts, settlements of termination claims, interim financing,
etc.
Transfer of Functions
Functions of Secretary of the Treasury transferred to Administrator
of General Services by section 102(b) of act June 30, 1949, ch. 288, 63
Stat. 380, which was classified to section 752(b) of former Title 40,
Public Buildings, Property, and Works, and was repealed by Pub. L. 107-
217, Sec. 6(b), Aug. 21, 2002, 116 Stat. 1304.
``Department of the Treasury'' substituted for ``Office of Contract
Settlement'' in subsec. (d) and references to ``Director'' changed to
``Secretary'' throughout this section by section 8 of Ex. Ord. No. 9809
and section 201 of Reorg. Plan No. 1 of 1947, set out in the Appendix to
Title 5, Government Organization and Employees.
Effective Date of Transfer of Functions
Transfer of functions by act June 30, 1949, effective July 1, 1949,
see section 605, formerly section 505, of act June 30, 1949, ch. 288, 63
Stat. 403; renumbered by act Sept. 5, 1950, ch. 849, Sec. 6(a), (b), 64
Stat. 583.
