with a standard system of accounting prescribed by the Administrator after consultation with appropriate public agencies;

(7) the airport operator or owner will submit to the Administrator such annual or special airport financial and operations reports as the Administrator may reasonably request; and

(8) the airport and all airport records will be available for inspection by any duly authorized agent of the Administrator upon reasonable request.

To insure compliance with this section, the Administrator shall prescribe such project sponsorship requirements, consistent with the terms of this Act, as he may deem necessary. Among other steps to insure such compliance the Administrator is authorized to enter into contracts with public agencies, on behalf of the United States.

GRANT AGREEMENTS

SEC. 12 [49 U. S. C. A. 1111] Upon approving a project the Administrator, on behalf of the United States, shall transmit to the sponsor or sponsors of the project an offer to pay the United States share of the allowable project costs of such project. Any such offer shall be made upon such terms, and subject to such conditions, as the Administrator may deem necessary to meet the requirements of this Act and the regulations prescribed thereunder. Each such offer shall state a definite amount as the maximum obligation of the United States payable from funds appropriated under authority of this Act, and shall stipulate the obligations to be assumed by the sponsor or sponsors of the project. If and when any such offer is accepted in writing by the sponsor or sponsors to which it is made, such offer and acceptance shall comprise a grant agreement constituting an obligation of the United States and of the sponsor or sponsors so accepting, and thereafter the amount stated in the accepted offer as the maximum obligation of the United States under such grant agreement shall not be increased. Unless and until such a grant agreement has been executed with respect to a project, the United States shall not pay, nor be obligated to pay, any portion of the project costs which have been or may be incurred in carrying out that project.

ALLOWABLE PROJECT COSTS

SEC. 13 [49 U. S. C. A. 1112] Except as provided in section 14, the United States shall not pay, or be obligated to pay, from amounts appropriated to carry out the provisions of this Act, any portion of a project cost incurred in carrying out a project unless the Administrator has first determined that such cost is allowable. A project cost shall be allowable if

(1) it was a necessary cost incurred in accomplishing airport development in conformity with approved plans and specifications for an approved project and with the terms and conditions of the grant agreement entered into in connection with such project;

(2) it was incurred subsequent to the execution of the grant agreement with respect to the project, and in connection with airport development accomplished under such project after the

execution of such grant agreement: Provided, however, That the allowable costs of a project may include any necessary costs of formulating the project (including those of field surveys and the preparation of plans and specifications, including costs of acquiring land or interests therein or easements through or other interests in air space, and including any necessary administrative or other incidental costs incurred by the sponsor specifically in connection with the accomplishment of the project, which would not have been incurred otherwise) which were incurred subsequent to the enactment of this Act; and

(3) it is reasonable in amount, in the opinion of the Administrator: Provided, That if the Administrator determines that a project cost is unreasonable in amount, he shall allow, as an allowable project cost under this section, only such amount of such project cost as he determines to be reasonable and no project costs in excess of the definite amount stated in the grant agreement shall be allowable.

The Administrator is authorized to prescribe such regulations, including regulations with respect to the auditing of project costs, as he may deem necessary to effectuate the purposes of this section.

PAYMENTS

SEC. 14 [49 U. S. C. A. 1113] The Administrator, after consultation with the sponsor or sponsors with which a grant agreement has been entered into, shall determine at what times, and in what amounts, payments shall be made under this Act. The aggregate of such payments at any time with respect to a particular project shall not exceed a percentage of the project costs of the airport development which has been performed up to that time (and which the sponsor or sponsors to which the payments are to be made certify to have been performed in accordance with the approved plans and specifications for such project), equal to the percentage of the allowable project costs of the project determined to be the United States share of such costs; and if the Administrator shall determine at any time that the aggregate of such payments exceeds the United States share of the allowable project costs of such project the United States shall be entitled to recover such excess. Such payments shall be made to such official or officials or depository, authorized by law to receive public funds, as may be designated by the sponsor or sponsors entitled to such payments.

PERFORMANCE OF CONSTRUCTION WORK

Regulations of the Administrator

SEC. 15 [49 U.S. C. A. 1114] (a) The construction work on any approved project shall be subject to inspection and approval by the Administrator and in accordance with regulations prescribed by him. Such regulations shall require such cost and progress reporting by the sponsor or sponsors of such project as the Administrator shall deem necessary. No such regulation shall have the effect of altering any contract in connection with any project entered into without actual notice of the regulation.

Minimum Rates of Wages

(b) All contracts for work on projects approved under this Act which involves labor shall contain provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor, which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work.

Other Provisions as to Labor

(c) All contracts for work on projects approved under this Act which involves labor shall contain such provisions as are necessary to insure (1) that no convict labor shall be employed; and (2) that in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given, where they are qualified, to individuals who have served as persons in the military service of the United States (as defined in section 101 (1) of the Soldiers' and Sailors' Civil Relief Act of 1940), and who have been honorably discharged from such service: Provided, That such preference shall apply only where such labor is available and qualified to perform the work to which the employment relates.

USE OF GOVERNMENT-OWNED LANDS

Requests for Use

SEC. 16 [49 U. S. C. A. 1115] (a) Whenever the Administrator determines that use of any lands owned or controlled by the United States is reasonably necessary for carrying out a project under this Act, or for the operation of any public airport, he shall file with the head of the department or agency having control of such lands a request that such property interest therein as he may deem necessary be conveyed to the public agency sponsoring the project in question or owning or controlling the airport. Such property interest may consist of the title to or any other interest in land or any easement through or other interest in air space.

Making of Conveyances

(b) Upon receipt of a request from the Administrator under this section, the head of the department or agency having control of the lands in question shall determine whether the requested conveyance is inconsistent with the needs of the department or agency, and shall notify the Administrator of his determination within a period of four months after receipt of the Administrator's request. If such department or agency head determines that the requested conveyance is not inconsistent with the needs of that department or agency, such department or agency head is hereby authorized and directed, with the approval of the President and the Attorney General of the United States, and without any expense to the United States, to perform any acts and to execute any instruments necessary to make the conveyance requested; but each such conveyance shall be made on the condition that the property interest conveyed shall automatically revert to the United States in the event that the lands in question are not developed, or cease to be used, for airport purposes.

REIMBURSEMENT FOR DAMAGE BY FEDERAL AGENCIES TO PUBLIC AIRPORTS

Submission and Determination of Claims 1

SEC. 17 [49 U. S. C. A. 1116] (a) Reimbursement shall be made to public agencies, as provided in this section, for the necessary rehabilitation or repair of public airports heretofore or hereafter substantially damaged by any Federal agency. The Administrator is authorized to render such assistance as he deems necessary to public agencies in the preparation of requests for reimbursement for the cost of rehabilitation or repair of public airports, under the control or management of such public agencies, which have been substantially damaged by any Federal agency and, upon receipt of such a request from a public agency, the Administrator is further authorized, on behalf of the United States, to consider, ascertain, and determine, in accordance with regulations he shall prescribe pursuant to this section, the actual or estimated cost of such necessary rehabilitation or repair for which such public agency is entitled to reimbursement from the United States.

Certification of Claims to Congress

(b) Such amount as may be found by the Administrator to be the actual or estimated cost of such rehabilitation or repair shall be certified by the Administrator to Congress, which certification shall include a brief statement of the character of the damage upon which the request for reimbursement is based and of the work performed or to be performed to accomplish such rehabilitation or repair. In the event that, upon completion of such rehabilitation or repair, it is determined that the actual cost thereof, as approved by the Administrator, exceeds the amount of the estimate certified to Congress by him, the Administrator shall certify to Congress the amount by which such actual cost exceeds such estimate including in such certification a brief statement of the cause of the variation between the estimated and the actual cost of such rehabilitation and repair. Certifications made hereunder by the Administrator shall be deemed contractual obligations of the United States, payable as hereinafter provided.

Appropriation for Reimbursement

(c) There are hereby authorized to be appropriated such amounts as may be necessary to enable the Administrator to make payments as provided for in this section to public agencies, either upon completion of the rehabilitation or repair involved, or as such rehabilitation or repair progresses, it being the purpose of this subsection to authorize the Administrator to make payments to public agencies, out of funds appropriated pursuant to this section, as reimbursement for the cost of such public agencies of work performed in accomplishing rehabilitation or repair prior to final completion of such work and at such time or times as may be determined by the Administrator, after consultation with the public agency involved: Provided, That no such payment made by the Administrator shall be in an amount which, together with all previous payments made to reimburse such public agency for the cost of such rehabilitation or repair, shall exceed the

1 Subject headings supplied by editors as amendment did not include headings.

estimated cost of the work then performed. If the Administrator shall determine at any time that the aggregate of such payments exceeds the actual cost of the work then performed the United States shall be entitled to recover such excess. In the event the estimate of the cost of rehabilitation or repair of an airport as certified to Congress by the Administrator exceeds the actual cost of such rehabilitation or repair, the amount of such excess shall be covered into the Treasury of the United States as miscellaneous receipts. Appropriations made purusant to this subsection shall remain available until June 30, 1953, unless sooner expended.

Limitation on Submission of Claims

(d) No request for reimbursement of the cost of rehabilitation or repair to a public airport submitted pursuant to this section shall be considered by the Administrator unless such request has been submitted to him within six months after the occurrence of the damage upon which the request is based, except that in case of a request relating to damage caused by operations of a military nature during time of war, such request may be submitted within six months after the date of termination of such war unless the airport is under the control and management of the United States at the time of termination of such war, in which event the request may be submitted to the Administrator within six months after the transfer of such control or management of the airport to the public agency involved. [As amended by Act of June 29, 1948, 62 Stat. 1111.]

REPORTS TO CONGRESS

SEC. 18 [49 U. S. C. 1117] On or before the third day of January of each year the Administrator shall make a report to the Congress describing his operations under this Act during the preceding fiscal year, including detailed statements of the airport development accomplished, the status of each project undertaken, the allocation of appropriations, and itemized statements of expenditures and receipts, and setting forth his recommendations, if any, for legislation amending or supplementing this Act.

FALSE STATEMENTS

SEC. 19 [49 U. S. C. 1118] Any officer, agent, or employee of the United States, or any officer, agent, or employee of any public agency, or any person, association, firm, or corporation who shall knowingly make any false statement, false representation, or false report as to the character, quality, quantity, or cost of the material used or to be used, or the quantity or quality of the work performed or to be performed, or the costs thereof, in connection with the submission of plans, maps, specifications, contracts, or estimates of project costs for any project submitted to the Administrator for approval under this Act or shall knowingly make any false statement, false representation, or false report or claim for work or materials for any project approved by the Administrator under this Act, or shall knowingly make any false statement or false representation in any report required to be made under this Act, with the intent to defraud the United States shall, upon conviction thereof, be punished by imprisonment, for not to exceed five years or by a fine of not to exceed $10,000, or by both such fine and imprisonment.