§2297h–6 Transfer of Contracts

Summary

When the government privatizes, the Corporation must give the private company all its contracts, agreements, and leases. That includes uranium enrichment contracts that the Secretary had moved to the Corporation or that the Corporation signed before the privatization date. The Corporation must also give the private company the right to buy power under the power purchase deals for the gaseous diffusion plants that the Secretary signed before July 1, 1993. The Secretary will keep receiving that power and will sell it to the private company at cost while those deals last. The United States stays responsible to the other parties for duties under those transferred contracts during their terms. Work done by the private company counts as if the United States did it. If a transferred contract is ended, extended, or changed after privatization, the private company is responsible for duties that start after that change, and the United States is responsible for duties before it. If the United States pays a settlement or judgment that comes from a transferred contract and from actions by the private company between the privatization date and the later change, the private company must pay the United States back. The Corporation may set prices so it can operate like a profit-making business.