(2) In order to provide the Congress with information to assist it in assessing the efforts of the agency primarily responsible for administering part I of this Act to make the maximum possible use of competitive selection procedures, the Administrator of that agency (A) when submitting the congressional presentation materials for developing assistance for fiscal year 1980, shall also submit to the Congress a report identifying and describing each contract in an amount in excess of $100,000 which the agency entered into withont competitive selection procedures during the period April 1, 1978, to September 30, 1978, and explaining why each such contract was not the subject of competitive selection procedures; and (B) when submitting the congressional presentation materials for development assistance for fiscal year 1981, shall also submit to the Congress a report identifying and describing each contract in an amount in excess of $100,000 which the agency entered into without competitive selection procedures during the fiscal year 1979 and explaining why each such contract was not the subject of competitive selection procedures. Sec. 602.357 Small Business.—(a) Insofar as practicable and to the maximum extent consistent with the accomplishment of the purposes of this Act, the President shall assist American small business to participate equitably in the furnishing of commodities, defense articles, and services (including defense services) financed with funds made available under this Act (1) by causing to be made available to suppliers in the United States, and particularly to small independent enterprises, information, as far in advance as possible, with respect to purchases proposed to be financed with such funds; (2) by causing to be made available to prospective purchasers in the countries and areas receiving assistance under this Act information as to such commodities, articles, and services produced by small independent enterprises in the United States; and (3) by providing for additional services to give small business better opportunities to participate in the furnishing of such commodities, articles, and services financed with such funds. (b) There shall be an Office of Small Business, headed by a Special Assistant for Small Business, in such agency of the United States Government as the President may direct, to assist in carrying out the provisions of subsection (a) of this section. (c) The Secretary of Defense shall assure that there is made available to suppliers in the United States, and particularly to small independent enterprises, information with respect to purchase made by the Department of Defense pursuant to part II, such information to be furnished as far in advance as possible. Sec. 603.358 Shipping on United States Vessels.-The ocean transportation between foreign countries of commodities and defense articles purchased with foreign currencies made available or derived from funds made available under this Act or the Agricultural Trade Development and Assistance Act of 1954, as amended 359 (7 U.S.C. 857 22 U.S.C. § 2352. 358 22 U.S.C. § 2353. 1691 et seq.), and transfers of fresh fruit and products thereof under this Act shall not be governed by the provisions of section 901 (b) of the Merchant Marine Act of 1936, as amended 360 (46 U.S.C. 1241), or any other law relating to the ocean transportation of commodities on United States flag vessels. Sec. 604.361 Procurement.-(a) Fusds made available under this Act may be used for procurement outside the United States only if the President determines that such procurement will not result in adverse effects upon the economy of the United States or the industrial mobilization base, with special reference to any areas of labor surplus or to the net position of the United States in its balance of payments with the rest of the world, which outweigh the economic or other advantages to the United States of less costly procurement outside the United States,362 and only if the price of any commodity procured in bulk is lower than the market price prevailing in the United States at the time of procurement, adjusted for differences in the cost of transportation to destination, quality, and terms of payment.363 (b) No funds made available under this Act shall be used for the purchase in bulk of any commodities at prices higher than the market price prevailing in the United States at the time of purchase, adjusted for differences in the cost of transportation to destination, quality, and terms of payment. (c) In providing for the procurement of any 364 agricultural commodity or product thereof available for disposition under the Agricultural Trade Development and Assistance Act of 1954, as amended,365 for transfer by grant under this Act to any recipient country in accordance with its requirements, the President shall, insofar as practicablo and when in furtherance of the purposes of this Act, authorize the procurement of such 364 agricultural commodity only within the United States except to the extent that such 364 agricultural commodity is not available in the United States in sufficient quantities to supply emergency requirements of recipients under this Act. (d) In providing assistance in the procurement of commodities in the United States, United States dollars shall be made available for marine insurance on such commodities where such insurance is placed on a competitive basis in accordance with normal trade practice prevailing prior to the outbreak of World War II: Provided, That in the event a participating country, by statute, decree, rule, or regulation, discriminates against any marine insurance company authorized to do business in any State of the United States, then commodities purchased with funds provided hereunder and destined for such country shall be insured in the United States against marine risk with a company or companies authorized to do a marine insurance business in any State of the United States. (e) 366 No funds made available under this Act shall be used for the 360 For text. see page 218. 361 22 U.S.C. § 2354. 363 See also Sec. 237 (k) of this Act. 383 See also Sec. 604 (b) of this Act. 364 Sec. 301 (b) (1) of the FAAct of 1966 struck out the word "surplus" which appeared before the word "agricultural". 365 The words "or product thereof available for disposition under the Agricultural Trade Development and Assistance Act of 1954, as amended," were added by Sec. 301(b)(1) of the FAAct of 1966. For text of the Agricultural Trade Development and Assistance Act, see page 327. 386 Subsection (e) was added by Sec. 301 (b) (2) of the FAAct of 1966. procurement of any agricultural commodity or product thereof outside the United States when the domestic price of such commodity is less than parity. (f) 367 No funds authorized to be made available to carry out part I of this Act shall be used under any commodity import program to make any payment to a supplier unless the supplier has certified to the agency primarily responsible for administering such part I, such information as such agency shall by regulation prescribe, including but not limited to, a description of the commodity supplied by him and its condition, and on the basis of such information such agency shall have approved such commodity as eligible and suitable for financing under this Act. Sec. 605.368 Retention and Use of Certain Items and Funds.369____ (a) Any commodities and defense articles procured to carry out this Act shall be retained by, or upon reimbursement, transferred to, and for the use of, such agency of the United States Government as the President may determine in lieu of being disposed of to a foreign country or international organization, whenever in the judgment of the President the best interests of the United States will be served thereby or whenever such retention is called for by concurrent resolution. Any commodities or defense articles so retained may be disposed of without regard to provisions of law relating to the disposal of property owned by the United States Government, when necessary to prevent spoilage or wastage of such commodities or defense articles or to conserve the usefulness thereof. Funds realized from any disposal or transfer shall revert to the respective appropriation, fund, or account used to procure such commodities or defense articles or to the appropriation, fund, or account currently available for the same general purpose. (b) Whenever commodities are transferred to the United States Government as repayment of assistance under this Act, such commodities may be used in furtherance of the purposes and within the limitations of this Act. (c) 370 Funds realized as a result of any failure of a transaction financed under authority of part I of this Act to conform to the requirements of this Act, or to applicable rules and regulations of the United States Government, or to the terms of any agreement or contract entered into under authority of part I of this Act, shall revert to the respective appropriation, fund, or account used to finance such transaction or to the appropriation, fund, or account currently available for the same general purpose. (d) 370 Funds realized by the United States Government from the sale, transfer, or disposal of defense articles returned to the United States Government by a recipient country or international organization as no longer needed for the purpose for which furnished shall be credited to the respective appropriation, fund, or account used to procure such defense articles or to the appropriation, fund, or account currently available for the same general purpose. 367 Subsection (f) was added by Sec. 301 (a) of the FAAct of 1968. 388 22 U.S.C. § 2355. 300 Sec. 301(a)(1) of the FAAct of 1965 substituted "CERTAIN ITEMS AND FUNDS" for "ITEMS". 370 Subsections (c) and (d) were added by Sec. 301 (a) (2) of the FAAct of 1965. Sec. 606.371 Patents and Technical Information.-(a) Whenever, in connection with the furnishing of assistance under this Act (1) an invention or discovery covered by a patent issued by the United States Government is practiced within the United States without the authorization of the owner, or (2) information, which is (A) protected by law, and (B) held by the United States Government subject to restrictions imposed by the owner, is disclosed by the United States Government or any of its officers, employees, or agents in violation of such restrictions, the exclusive remedy of the owner, except as provided in subsection (b) of this section, is to sue the United States Government for reasonable and entire compensation for such practice or disclosure in the district court of the United States for the district in which such owner is a resident, or in the Court of Claims, within six years after the cause of action arises. Any period during which the United States Government is in possession of a written claim under subsection (b) of this section before mailing a notice of denial of that claim does not count in computing the six years. In any such suit, the United States Government may plead any defense that may be pleaded by a private person in such an action. The last paragraph of section 1498 (a) of title 28 of the United States Code shall apply to inventions and information covered by this section. (b) Before suit against the United States Government has been instituted, the head of the agency of the United States Government concerned may settle and pay any claim arising under the circumstances described in subsection (a) of this section. No claim may be paid under this subsection unless the amount tendered is accepted by the claimant in full satisfaction. (c) Funds appropriated pursuant to this Act shall not be expended by the United States Government for the acquisition of any drug product or pharmaceutical product manufactured outside the United States if the manufacture of such drug product or pharmaceutical product in the United States would involve the use of, or be covered by, an unexpired patent of the United States which has not previously been held invalid by an unappealed or unappealable judgment or decree of a court of competent jurisdiction, unless such manufacture is expressly authorized by the owner of such patent. Sec. 607.372 Furnishing of Services and Commodities.-(a) 373 Whenever the President determines it to be consistent with and in furtherance of the purposes of part I and within the limitations of this Act, any agency of the United States Government is authorized to furnish services and commodities on an advance-of-funds or reimbursement basis to friendly countries, international organizations, the American Red Cross, and voluntary nonprofit relief agencies registered with and approved by the Advisory Committee on Voluntary Foreign Aid (including foreign voluntary nonprofit relief agencies so registered and approved when no United States voluntary nonprofit relief agency is available).374 Such advances or reimbursements may be 371 22 U.S.C. § 2356. 372 22 U.S.C. § 2357. 373 Subsection designation "(a)" was added by Sec. 301 (b) of the FAAct of 1968. 374 The parenthetical phrase was added by Sec. 122 (a) of the International Development and Food Assistance Act of 1977 (91 Stat. 541). Subsection (b) of Sec. 122 further instructed the President to issue regulations "governing registration with and approval by the Advisory Committee on Voluntary Foreign Aid of foreign nonprofit agencies." credited to the currently applicable appropriation, account, or fund of the agency concerned and shall be available for the purposes for which such appropriation, account, or fund is authorized to be used, under the following circumstances: (1) Advances or reimbursements which are received under this section within one hundred and eighty days after the close of the fiscal year in which such services and commodities are delivered. (2) Advances or reimbursements received pursuant to agreements executed under this section in which reimbursement will not be completed within one hundred and eighty days after the close of the fiscal year in which such services and commodities are delivered: Provided, That such agreements require the payment of interest at the current rate established pursuant to section 2 (b)(1) (B) of the Export-Import Bank Act of 1945 (59 Stat. 526), and repayment of such principal and interest does not exceed a period of three years from the date of signing of the agreement to provide the service: Provided further, That funds available for this paragraph in any fiscal year shall not exceed $1,000,000 of the total funds authorized for use in such fiscal year by chapter 1 of part I of this Act, and shall be available only to the extent provided in appropriation Acts. Interest shall accrue as of the date of disbursement to the agency or organization providing such services.375 (b) 376 When any agency of the United States Government provides services on an advance-of-funds or reimbursable basis under this section, such agency may contract with individuals for personal service abroad or in the United States to perform such services or to replace officers or employees of the United States Government who are assigned by the agency to provide such services. Such individuals shall not be regarded as employees of the United States Government for the purpose of any law administered by the Civil Service Commission. (c) 376 No Government-owned excess property shall be made available under this section, section 608, or otherwise in furtherance of the purposes of part I of this Act, unless, before the shipment of such property for use in a specified country (or transfer, if the property is already in such country), the agency administering such part I has approved such shipment (or transfer) and made a written determination (1) that there is a need for such property in the quantity requested and that such property is suitable for the purpose requested; (2) as to the status and responsibility of the designated end-user and his ability effectively to use and maintain such property; and (3) that the residual value, serviceability, and appearance of such property would not reflect unfavorably on the image of the 375 Sec. 315 of P.L. 94-161 (89 Stat. 849) substituted the words to this point commencing with "Such advances or reimbursements may be credited • "in lieu of "Such advances or reimbursements which are received under this section within one hundred and eighty days after the close of the fiscal year in which such services and commodities are delivered, may be credited to the current applicable appropriation, account, or fund of the agency concerned and shall be available for the purposes for which such appropriation, account, or fund is authorized to be used." 378 Sec. 503 of the International Development and Food Assistance Act of 1978 (92 Stat. 959) redesignated subsection (b) (as added by FAAct of 1968) as subsection (c) and added a new subsection (b). |