Design competitions: rejection or purchase of designs; contracts; conditions

§ 2272. Design competitions: rejection or purchase of designs; contracts; conditions (a) If the Secretary of the military department concerned determines that a winner of a design competition under section 2271 of this title is, or can become within a reasonable time, able and equipped to furnish or construct all or part of any designed item, he may contract with that winner for furnishing or constructing it at a reasonable price, but not more than the price submitted with the design, on terms that he considers most advantageous to the United States. However, if the Secretary determines that the winner will not be able to furnish all or part of any designed item, he may buy the design, or a separable part of it, at a fair and reasonable price, but not more than the price submitted with the design. (b) If the Secretary of the military department concerned determines that none of the designs submitted in a competition is of sufficient merit to justify procurement of a designed item, he need not accept or pay for them. (c) If the Secretary of the military department concerned determines that the designs submitted by two or more competitors are of 125equal merit, or that features in the designs of one competitor are superior to the corresponding features in the designs of another competitor and that the superior features of one design may be substituted for the inferior features of another, he may divide the contracts for furnishing the item equitably among those competitors that submitted designs of equal merit, or he may combine features of superior excellence of different designs in such manner as he determines to be in the best interest of the United States. Payment may be made accordingly to the several competitors at fair and reasonable prices and the contract for the item may be awarded to the competitor or competitors having the highest figures of merit in the competition. (d) If the Secretary of the military department concerned cannot contract with a winner in a design competition for furnishing or constructing all or part of a designed item, or if he cannot agree with a winner for the purchase of a design at a reasonable price, he may retain the design and advertise according to law for proposals for furnishing or constructing the item. After all proposals are submitted the Secretary may contract with the lowest responsible bidder for furnishing the item, on terms that he considers in the best interest of the United States. However, the Secretary may reject all bids and advertise for other bids with the same or different specifications. (e) Each seller of designs and each contractor furnishing or constructing aircraft, aircraft parts, or aeronautical accessories under this section shall, if the Secretary of the military department concerned requests it, release claims against the United States arising out of the sale or contract. The release shall be in the form, and shall contain the terms, prescribed by the Secretary. (f) No contract may be awarded under this section— (1) to an individual who is not a citizen of the United States; (2) to a corporation, unless 75 percent of its capital stock is owned by, and all its directors are, citizens of the United States; or (3) to an individual or a corporation that does not have a manufacturing plant within the United States. However, the Secretary of the military department concerned may contract with any domestic corporation whose stock is listed on a stock exchange, unless he knows that a majority of its stock is owned or controlled by aliens.