---
kind: "section"
citation: "22 U.S.C. § 3861"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "3861"
heading: "Procurement system"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/22/3861"
units:
  - "Chapter 51 — Panama Canal"
  - "Subchapter III — General Provisions"
  - "Part 1 — Procurement"
---

# §3861. Procurement system

- (a) **Panama Canal Acquisition Regulation—**
  - (1) The [Commission](/usc/22/277d–43.md?p=2) shall establish by regulation a comprehensive procurement system. The regulation shall be known as the “Panama Canal Acquisition Regulation” (in this section referred to as the “Regulation”) and shall provide for the procurement of goods and services by the [Commission](/usc/22/277d–43.md?p=2) in a manner that—
    - (A) applies the fundamental operating principles and procedures in the Federal Acquisition Regulation;
    - (B) uses efficient commercial standards of practice; and
    - (C) is suitable for adoption and uninterrupted use by the Republic of Panama after the [Canal Transfer Date](/usc/22/3602.md?p=d-1).
  - (2) The Regulation shall contain provisions regarding the establishment of the Panama Canal Board of Contract Appeals described in [section 3862 of this title](/usc/22/3862.md).
- (b) **Supplement to Regulation—** The [Commission](/usc/22/277d–43.md?p=2) shall develop a Supplement to the Regulation (in this section referred to as the “Supplement”) that identifies both the provisions of Federal law applicable to procurement of goods and services by the [Commission](/usc/22/277d–43.md?p=2) and the provisions of Federal law waived by the [Commission](/usc/22/277d–43.md?p=2) under [subsection (c)](#c).
- (c) **Waiver authority—**
  - (1) Subject to [paragraph (2)](#c-2), the [Commission](/usc/22/277d–43.md?p=2) shall determine which provisions of Federal law should not apply to procurement by the [Commission](/usc/22/277d–43.md?p=2) and may waive those laws for purposes of the Regulation and Supplement.
  - (2) For purposes of [paragraph (1)](#c-1), the [Commission](/usc/22/277d–43.md?p=2) may not waive—
    - (A) [chapter 21](/usc/41/chstI/dB/ch21.md) of title 41;
    - (B) [chapter 71](/usc/41/chstIII/ch71.md) of title 41, other than [section 7104(b) of title 41](/usc/41/7104.md?p=b); or
    - (C) civil rights, environmental, or labor laws.
- (d) **Consultation with Administrator for Federal Procurement Policy—** In establishing the Regulation and developing the Supplement, the [Commission](/usc/22/277d–43.md?p=2) shall consult with the [Administrator](/usc/22/277d–43.md?p=1) for Federal Procurement Policy.
- (e) **Effective date—** The Regulation and the Supplement shall take effect on the date of publication in the Federal Register, or January 1, 1999, whichever is earlier.

## Source credit

(Pub. L. 96–70, title III, § 3101, as added Pub. L. 105–85, div. C, title XXXV, § 3541, Nov. 18, 1997, 111 Stat. 2070.)

## Notes

### Editorial Notes

### Codification

In subsec. (c)(2)(A), “chapter 21 of title 41” substituted for “section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423)” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

In subsec. (c)(2)(B), “chapter 71 of title 41, other than section 7104(b) of title 41” substituted for “the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.), other than section 10(a) of such Act (41 U.S.C. 609(a))” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

### Prior Provisions

A prior section 3861, Pub. L. 96–70, title III, § 3101, Sept. 27, 1979, 93 Stat. 496, related to disinterment, transportation, and reinterment of remains, prior to repeal by Pub. L. 104–201, div. C, title XXXV, § 3546(a)(5), Sept. 23, 1996, 110 Stat. 2868.