50 USC § 1432 - Restrictions

---
identifier: "/us/usc/t50/s1432"
source: "usc"
legal_status: "official_prima_facie"
title: "50 USC § 1432 - Restrictions"
title_number: 50
title_name: "WAR AND NATIONAL DEFENSE"
section_number: "1432"
section_name: "Restrictions"
chapter_number: 29
chapter_name: "NATIONAL DEFENSE CONTRACTS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-21"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 85–804, § 2, Aug. 28, 1958, 72 Stat. 972.)"
---


# § 1432. Restrictions

Nothing in this chapter shall be construed to constitute authorization hereunder for—

**(a)** the use of the cost-plus-a-percentage-of-cost system of contracting;

**(b)** any contract in violation of existing law relating to limitation of profits;

**(c)** the negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding;

**(d)** the waiver of any bid, payment, performance, or other bond required by law;

**1** the amendment of a contract negotiated under section 2304(a)(15) [^1] of title 10 or under section 252(c)(13) [^1] of title 41, to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder; or

See References in Text note below.

**(f)** the formalization of an informal commitment, unless it is found that at the time the commitment was made it was impracticable to use normal procurement procedures.

---

**Source Credit**: (Pub. L. 85–804, § 2, Aug. 28, 1958, 72 Stat. 972.)

## Editorial Notes

### References in Text

, referred to in subd. (e), was amended generally by  and, as so amended, did not contain a subsec. (a)(15). Section 2304 was repealed by , §§ 1801(d), 1881(a), , , 4293, effective , with additional provisions for delayed implementation and applicability of existing law.

, referred to in subd. (e), was renumbered section 252(c)(14) of former Title 41, Public Contracts, by , , . Subsequently,  amended section 252 of former Title 41 by striking out subsec. (c), redesignating subsec. (e) as (c)(1), and adding subsec. (c)(2).

## Statutory Notes and Related Subsidiaries

### Nonapplicability of National Emergencies Act

The provisions of the National Emergencies Act [see Short Title note set out under ] shall not apply to the powers and authorities conferred by this section and actions taken hereunder, see .