DATE: October 24, 2001

SUBJECT: Executive Order 13232, Further Amendment to Executive Order 10789, as Amended, To Authorize the Department of Health and Human Services To Exercise Certain Contracting Authority in Connection With National Defense Functions

SOURCE: Federal Register; October 24, 2001, Vol. 66, No. 206 page 53939

AGENCIES: The President

ACTION: Issuance of Executive Order

SYNOPSIS: On October 20, 2001, President Bush issued Executive Order 13232 to authorize the Department of Health and Human Services (HHS) to exercise certain contracting authority in connection with national defense functions as authorized in Executive Order 10789 of November 14, 1958, Authorizing Agencies of the Government to Exercise Certain Contracting Authority in Connection with National-Defense Functions and Prescribing Regulations Governing the Exercise of Such Authority.

EFFECTIVE DATE: October 20, 2001.

SUPPLEMENTAL INFORMATION: Executive Order 13232 adds HHS to the list of departments and agencies authorized to exercise the contracting authority provided in Executive Order 10789, which authorizes the Departments of Defense, Agriculture, Commerce, Energy, the Interior, Transportation, and the Treasury, the Federal Emergency Management Agency, the General Services Administration, the Government Printing Office, the National Aeronautics and Space Administration, and the Tennessee Valley Authority to "enter into contracts and into amendments or modifications of contracts heretofore or hereafter made, and to make advance payments thereon, without regard to the provisions of law relating to the making, performance, amendment, or modification of contracts, whenever, in the judgment of the Secretary [or Administrator], or the duly authorized representative of any such Secretary [or Administrator], the national defense will be facilitated thereby...Provided, that the authority herein conferred shall not be utilized to obligate the United States in an amount in excess of $50,000 without approval by an official at or above the level of an Assistant Secretary or his Deputy..."

This authority includes "agreements of all kinds (whether in the form of letters of intent, purchase orders, or otherwise) for all types and kinds of property or services necessary, appropriate, or convenient for the national defense, or for the invention, development, or production of, or research concerning, any such property or services...[The department or agency] "may by agreement modify or amend or settle claims under contracts heretofore or hereafter made, may make advance payments upon such contracts of any portion of the contract price, and may enter into agreements with contractors or obligors modifying or releasing accrued obligations of any sort, including accrued liquidated damages or liability under surety or other bonds. Amendments or modifications of contracts may be with or without consideration and may be utilized to accomplish the same things as any original contract could have accomplished hereunder, irrespective of the time or circumstances of the making, or the form, of the contract amended or modified, or of the amending or modifying contract, and irrespective of rights which may have accrued under the contract or the amendments or modifications thereof."

There are some limits to the authority. Executive Order 10789 does not authorize:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

Return to the Dispatches Library.

Return to the Main Page.