Title 50 › CHAPTER 29 — NATIONAL DEFENSE CONTRACTS › § 1432
The chapter forbids several contracting practices. It does not allow using contracts that just add a percentage fee on top of costs. It bans any contract that would violate laws limiting profits. It stops buying things that must be bought by public notice and open competitive bidding from being negotiated privately. It forbids skipping any bond the law requires, like bid, payment, or performance bonds. It also forbids raising the price of a contract made under section 2304(a)(15) of title 10 or section 252(c)(13) of title 41 to an amount higher than the lowest rejected bid by any responsible bidder. Finally, it prevents turning an informal promise into a formal contract unless, when the promise was made, using normal procurement procedures was impractical.
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War and National Defense, Source: USLM XML via OLRC
Legislative History
Reference
Citation
50 U.S.C. § 1432
Title 50, War and National Defense
Last Updated
Sep 23, 2026
Release point: 119-110