Page:United States Statutes at Large Volume 76.djvu/569

 76 STAT.]

PUBLIC LAW 87-651^EPT. 7, 1962

making of determinations concerning the performance, of a contract; and "(2) if a contract is terminated under clause (1), the United States has the same remedies against the contractor that it would have had if the contractor had breached the contract and, in addition to other damages, is entitled to exemplary damages in an amount at least three, but not more than 10, as determined by the Secretary or his designee, times the cost incurred by the contractor in giving gratuities to the officer, official, or employee concerned. The existence of facts upon which the Secretary makes findings under clause (1) may be reviewed by any competent court. "§ 2208. Working-capital funds "(a) To control and account more effectively for the cost of programs and work performed in the Department of Defense, the Secretary of Defense may require the establishment of working-capital funds in the Department of Defense to— "(1) finance inventories of such supplies as he may designate; and "(2) proivide working capital for such industrial-type activities, and such commercial-type activities that provide common services within or among departments and agencies of the Department of Defense, as he may designate. " (b) Upon the request of the Secretary of Defense, the Secretary of the Treasury shall establish working-capital funds established under this section on the books of the Department of the Treasury. "(c) Working-capital funds shall be charged, when appropriate, with the cost of— "(1) supplies that are procured or otherwise acquired, manufactured, repaired, issued, or used; and " (2) services or work performed; including applicable administrative expenses, and be reimbursed from available appropriations or otherwise credited for those costs, including applicable administrative expenses and costs of using equipment. " (d) The Secretary of Defense may provide capital for workingcapital funds by capitalizing inventories. If this method does not, in the determination of the Secretary of Defense, provide adequate amounts of working capital, such amounts as may be necessary may be appropriarted for that purpose. "(e) Subject to the authority and direction of the Secretary of Defense, the Secretary of each military department shall allocate responsibility for its functions, powers, and duties to accomplish the most economical and efficient organization and operation of the activities, and the most economical and efficient use of the inventories, for which working-capital funds are authorized by this section. "(f) The requisitioning agency may not incur a cost for supplies drawn from inventories, or services or work performed by industrialtype or commercial-type activities for which working-capital funds may be established under this section, that is more than the amount of appropriations or other funds available for those purposes. " (g) The appraised value of supplies returned to working-capital funds by a department, activity, or agency may be charged to that fund. The proceeds thereof shall be credited to current applicable appropriations and are available for expenditure for the same purposes that those appropriations are so available. Credits may not be made to appropriations under this subsection as the result of capitalization of inventories under subsection (d). " (h) The Secretary of Defense shall prescribe regulations governing the operation of activities and use of inventories authorized by

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