Title 50War and National DefenseRelease 119-73not60

§1432 Restrictions

Title 50 › Chapter 29— NATIONAL DEFENSE CONTRACTS › § 1432

Last updated Apr 5, 2026|Official source

Summary

It bars certain contracting actions. It does not allow use of the cost-plus-a-percentage-of-cost contracting method. It forbids making contracts that violate laws limiting profits. It prevents buying property or services that must be obtained by formal public advertising and competitive bidding through other means. It stops waiving required bonds. It forbids amending a contract under section 2304(a)(15) of title 10 or section 252(c)(13) of title 41 to raise the price above the lowest rejected bid. It also forbids turning an informal commitment into a formal contract unless normal procurement was impracticable when the commitment was made.

Full Legal Text

Title 50, §1432

War and National Defense — Source: USLM XML via OLRC

Nothing in this chapter shall be construed to constitute authorization hereunder for— (a)
(b)any contract in violation of existing law relating to limitation of profits;
(c)the negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding;
(d)the waiver of any bid, payment, performance, or other bond required by law;
(e)the amendment of a contract negotiated under section 2304(a)(15) 11 See References in Text note below. of title 10 or under section 252(c)(13) 1 of title 41, to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder; or
(f)the formalization of an informal commitment, unless it is found that at the time the commitment was made it was impracticable to use normal procurement procedures.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Section 2304 of title 10, referred to in subd. (e), was amended generally by Pub. L. 98–369 and, as so amended, did not contain a subsec. (a)(15). section 2304 was repealed by Pub. L. 116–283, div. A, title XVIII, §§ 1801(d), 1881(a), Jan. 1, 2021, 134 Stat. 4151, 4293, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law. section 252(c)(13) of title 41, referred to in subd. (e), was renumbered section 252(c)(14) of former Title 41, Public Contracts, by Pub. L. 85–800, § 2(b), Aug. 28, 1958, 72 Stat. 966. Subsequently, Pub. L. 98–369 amended section 252 of former Title 41 by striking out subsec. (c), redesignating subsec. (e) as (c)(1), and adding subsec. (c)(2).

Statutory Notes and Related Subsidiaries

Nonapplicability of National Emergencies ActThe 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)(4) of this title.

Reference

Citations & Metadata

Citation

50 U.S.C. § 1432

Title 50War and National Defense

Last Updated

Apr 5, 2026

Release point: 119-73not60