Title 41Public ContractsRelease 119-73not60

§3901 Contracts Awarded Using Procedures Other Than Sealed-bid Procedures

Title 41 › Subtitle Subtitle I— Federal Procurement Policy › Chapter 39— SPECIFIC TYPES OF CONTRACTS › § 3901

Last updated Apr 5, 2026|Official source

Summary

Agency heads may use any kind of contract when they do not use sealed bids, if that choice best serves the federal government, except as limited by section 3905. Those contracts must include a contractor’s written promise that no one was hired to win the work for a commission or contingent fee, except regular employees or legitimate, established sales agents. If that promise is broken, the government can cancel the contract without owing money or can subtract the full fee from what it pays. The promise rule does not apply to contracts at or below the simplified acquisition threshold or to purchases of commercial products or services.

Full Legal Text

Title 41, §3901

Public Contracts — Source: USLM XML via OLRC

(a)Except as provided in section 3905 of this title, contracts awarded after using procedures other than sealed-bid procedures may be of any type which in the opinion of the agency head will promote the best interests of the Federal Government.
(b)(1)Every contract awarded after using procedures other than sealed-bid procedures shall contain a suitable warranty, as determined by the agency head, by the contractor that no person or selling agency has been employed or retained to solicit or secure the contract on an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for bona fide employees or bona fide established commercial or selling agencies the contractor maintains to secure business.
(2)For the breach or violation of the warranty, the Federal Government may annul the contract without liability or deduct from the contract price or consideration the full amount of the commission, percentage, brokerage, or contingent fee.
(3)Paragraph (1) does not apply to a contract for an amount that is not greater than the simplified acquisition threshold or to a contract for the acquisition of commercial products or commercial services.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 390141:254(a).June 30, 1949, ch. 288, title III, § 304(a), 63 Stat. 395; Pub. L. 98–369, div. B, title VII, § 2714(a)(3)(A), (B), July 18, 1984, 98 Stat. 1184; Pub. L. 103–355, title IV, § 4103(c), title VIII, § 8204(b), Oct. 13, 1994, 108 Stat. 3341, 3396. In subsection (b)(2), the words “in its discretion” are omitted as unnecessary.

Editorial Notes

Amendments

2018—Subsec. (b)(3). Pub. L. 115–232 substituted “commercial products or commercial services” for “commercial items”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2018 AmendmentAmendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a

Savings Provision

, see section 836(h) of Pub. L. 115–232, set out as an

Effective Date

of 2018 Amendment;

Savings Provision

note under section 453b of Title 6, Domestic Security.

Reference

Citations & Metadata

Citation

41 U.S.C. § 3901

Title 41Public Contracts

Last Updated

Apr 5, 2026

Release point: 119-73not60