(a) Whenever the Department of Labor notifies the head of a
contracting agency that a contractor is liable for liquidated damages by
reason of a breach of stipulations as provided in section 2 of the act,
there shall be withheld from any balance due under the contract such
amount as may be necessary to satisfy such liability pending final
disposition of the case.
(b) Whenever a final determination of a breach of stipulations is
made, the Secretary of Labor will furnish to the contracting agency a
copy of the findings and decision with such recommendations as will
assist the contracting agency in determining whether or not the contract
should be canceled for such breach.
[Regs. 504, 1 FR 1627, Sept. 19, 1936. Redesignated at 24 FR 10952, Dec.
30, 1959]
