Federal Register

Executive Order 10840--Designating the Federal Aviation Administration as an agency to have certain contractual authority under the Assignment of Claims Act of 1940, as amended

Source: The provisions of Executive Order 10840 of Sept. 30, 1959, appear at 24 FR 7939, 3 CFR, 1959-1963 Comp., p. 374, unless otherwise noted.

Whereas the Assignment of Claims Act of 1940 (54 Stat. 1029), as amended by the Act of September 13, 1982, 96 Stat. 976 (31 U.S.C. 3727), contains the following provisions:

During a war or national emergency proclaimed by the President or declared by law and ended by proclamation or law, a contract with the Department of Defense, the General Services Administration, the Department of Energy (when carrying out duties and powers formerly carried out by the Atomic Energy Commission), or other agency the President designates may provide, or may be changed without consideration to provide, that a future payment under the contract to an assignee is not subject to reduction or setoff. A payment subsequently due under the contract (even after the war or emergency is ended) shall be paid to the assignee without a reduction or setoff for liability of the assignor--

(1) to the Government independent of the contract; or

(2) because of renegotiation, fine, penalty (except an amount that may be collected or withheld under, or because the assignor does not comply with, the contract), taxes, social security contributions, or withholding or failing to withhold taxes or social security contributions, arising from, or independent of, the contract.

An assignee under this section does not have to make restitution of, refund, or repay the amount received because of the liability of the assignor to the Government that arises from or is independent of, the contract.

The Government may not collect or reclaim money paid to a person receiving an amount under an assignment or allotment of pay or allowances authorized by law when liability may exist because of the death of the person making the assignment or allotment.

AND WHEREAS it appears that it would be in the public interest to make those provisions applicable to the Federal Aviation Administration:

NOW, THEREFORE, by virtue of the authority vested in me by the above-quoted statutory provisions, I hereby designate the Federal Aviation Administration as an agency of the United States to which such statutory provisions shall apply in the same manner and to the same extent that they apply to the Department of Defense, the General Services Administration, and the Atomic Energy Commission.1


Editorial note: Executive Order 10840 is amended by Executive Order 11382 of Nov. 28, 1967, 32 FR 16247, 3 CFR, 1966-1970 Comp., p. 691, and Executive Order 12608 of Sept. 9, 1987, 52 FR 34617, 3 CFR, 1987 Comp., p. 245. Additionally, section 5(b) of Executive Order 10840 states that the utilization by the Federal Aviation Administration of the authority made available to it by Executive Order 10840, as amended, shall be subject to direction and control by the Secretary of Transportation.

1 Editorial note: The Atomic Energy Commission was abolished and its functions transferred to the Energy Research and Development Administration and the Nuclear Regulatory Commission by the Energy Reorganization Act of 1974 (Pub. L. 93-438, 88 Stat. 1233). The functions of the Energy Research and Development Administration were transferred to the Department of Energy by the Department of Energy Organization Act (91 Stat. 565, 42 U.S.C. 7151), effective Oct. 1, 1977.


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