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10 U.S.C. § 3532 (ARMED FORCES)
§ 3532. Multiyear contracts for acquisition of services: applicable principles
In entering into multiyear contracts for services under the authority of this subchapter, the head of the agency shall be guided by the following principles:
(1) The portion of the cost of any plant or equipment amortized as a cost of contract performance should not exceed the ratio between the period of contract performance and the anticipated useful commercial life of such plant or equipment. Useful commercial life, for this purpose, means the commercial utility of the facilities rather than the physical life thereof, with due consideration given to such factors as location of facilities, specialized nature thereof, and obsolescence.
(2) Consideration shall be given to the desirability of obtaining an option to renew the contract for a reasonable period not to exceed three years, at prices not to include charges for plant, equipment and other nonrecurring costs, already amortized.
(3) Consideration shall be given to the desirability of reserving in the agency the right, upon payment of the unamortized portion of the cost of the plant or equipment, to take title thereto under appropriate circumstances.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1822(m), (o), Jan. 1, 2021, 134 Stat. 4203.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3533 (ARMED FORCES)
§ 3533. Multiyear contracts for acquisition of services: contract cancellation or termination
(a) Cancellation or Termination for Insufficient Funding After First Year.—
In the event that funds are not made available for the continuation of a multiyear contract for services into a subsequent fiscal year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from—
(1) appropriations originally available for the performance of the contract concerned;
(2) appropriations currently available for procurement of the type of services concerned, and not otherwise obligated; or
(3) funds appropriated for those payments.
(b) Contract Cancellation Ceilings Exceeding $100,000,000.—
(1) Before any contract described in sections 1 3531(a) of this title that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the head of the agency concerned shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the congressional defense committees, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification.
(2) In the case of a contract described in sections 1 3531(a) of this title with a cancellation ceiling described in paragraph (1), if the budget for the contract does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established in the contract, the head of the agency concerned shall give written notification to the congressional defense committees of—
(A) the cancellation ceiling amounts planned for each program year in the proposed multiyear procurement contract, together with the reasons for the amounts planned;
(B) the extent to which costs of contract cancellation are not included in the budget for the contract; and
(C) a financial risk assessment of not including budgeting for costs of contract cancellation.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1822(m), (p), (q), Jan. 1, 2021, 134 Stat. 4203, 4204.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3534 (ARMED FORCES)
§ 3534. Multiyear contracts for acquisition of services: contracts with value above $500,000,000 to be specifically authorized by law
The head of an agency may not initiate a multiyear contract for services under this subchapter if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided by law.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1822(m), (r), Jan. 1, 2021, 134 Stat. 4203, 4204.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3535 (ARMED FORCES)
§ 3535. Multiyear contracts for acquisition of services: notice to congressional committees before taking certain actions
(a) Notice Before Award of Certain Contracts.—
The head of an agency may not initiate under this subchapter a contract for services that includes an unfunded contingent liability in excess of $20,000,000 unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract.
(b) Notice Before Terminating Multiyear Procurement Contract for Services.—
The head of an agency may not terminate a multiyear procurement contract for services until 10 days after the date on which notice of the proposed termination is provided to the congressional defense committees.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1822(m), (s), Jan. 1, 2021, 134 Stat. 4203, 4204.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3551 (ARMED FORCES)
§ 3551. Multiyear procurement authority: purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products
(a) Ten-Year Contract Period.—
The Secretary of Defense may enter into a contract for a period of up to 10 years for the purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products for the support of a United States national security program or a United States space program.
(b) Extensions.—
A contract entered into for more than one year under the authority of subsection (a) may be extended for a total of not more than 10 years pursuant to any option or options set forth in the contract.
(Added Pub. L. 107–314, div. A, title VIII, § 826(a), Dec. 2, 2002, 116 Stat. 2617, § 2410o; renumbered § 3551, Pub. L. 116–283, div. A, title XVIII, § 1822(t)(2), Jan. 1, 2021, 134 Stat. 4205.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 3571 (ARMED FORCES)
§ 3571. Simplified acquisition threshold
(a) Simplified Acquisition Threshold.—
For purposes of acquisitions by agencies named in section 3063 of this title, the simplified acquisition threshold is as specified in section 134 of title 41.
(b) Inapplicable Laws.—
No law properly listed in the Federal Acquisition Regulation pursuant to section 1905 of title 41 shall apply to or with respect to a contract or subcontract that is not greater than the simplified acquisition threshold.
(Added and amended Pub. L. 103–355, title IV, §§ 4002(a), 4102(a), Oct. 13, 1994, 108 Stat. 3338, 3340, § 2302a; Pub. L. 111–350, § 5(b)(9), Jan. 4, 2011, 124 Stat. 3843; renumbered § 3571 and amended Pub. L. 116–283, div. A, title XVIII, § 1823(b), (c)(1), Jan. 1, 2021, 134 Stat. 4205.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 3572 (ARMED FORCES)
§ 3572. Implementation of simplified acquisition procedures
The simplified acquisition procedures contained in the Federal Acquisition Regulation pursuant to section 1901 of title 41 shall apply as provided in such section to the agencies named in section 3063 of this title.
(Added Pub. L. 103–355, title IV, § 4203(a)(1), Oct. 13, 1994, 108 Stat. 3345, § 2302b; amended Pub. L. 111–350, § 5(b)(10), Jan. 4, 2011, 124 Stat. 3843; renumbered § 3572 and amended Pub. L. 116–283, div. A, title XVIII, § 1823(b), (c)(2), Jan. 1, 2021, 134 Stat. 4205.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 3573 (ARMED FORCES)
§ 3573. Micro-purchase threshold
The micro-purchase threshold for the Department of Defense is $10,000.
(Added Pub. L. 114–328, div. A, title VIII, § 821(a), Dec. 23, 2016, 130 Stat. 2276, § 2338; amended Pub. L. 115–232, div. A, title VIII, § 821(a), Aug. 13, 2018, 132 Stat. 1853; renumbered § 3573, Pub. L. 116–283, div. A, title XVIII, § 1823(b), Jan. 1, 2021, 134 Stat. 4205.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 3672 (ARMED FORCES)
§ 3672. Requirement of specific authorization by law for appropriation, and for obligation and expenditure, of funds for certain contracts relating to aircraft, naval vessels, and combat vehicles
(a) Limitation.—
Funds may not be appropriated for any fiscal year to or for any armed force or obligated or expended for—
(1) the long-term lease or charter of any aircraft, naval vessel, or combat vehicle; or
(2) for the lease or charter of any aircraft, naval vessel, or combat vehicle the terms of which provide for a substantial termination liability on the part of the United States,
unless funds for that purpose have been specifically authorized by law.
(b) Matter to Be Submitted to Congress.—
(1) Whenever a request is submitted to Congress for the authorization of the long-term lease or charter of aircraft, naval vessels, or combat vehicles or for the authorization of a lease or charter of aircraft, naval vessels, or combat vehicles which provides for a substantial termination liability on the part of the United States, the Secretary of Defense shall submit with that request an analysis of the cost to the United States (including lost tax revenues) of any such lease or charter arrangement compared with the cost to the United States of direct procurement of the aircraft, naval vessels, or combat vehicles by the United States.
(2) Any such analysis shall be reviewed and evaluated by the Director of the Office of Management and Budget and the Secretary of the Treasury within 30 days after the date on which the request and analysis are submitted to Congress. The Director and Secretary shall conduct such review and evaluation on the basis of the guidelines issued pursuant to section 3676 of this title and shall report to Congress in writing on the results of their review and evaluation at the earliest practicable date, but in no event more than 45 days after the date on which the request and analysis are submitted to the Congress.
(3) Whenever a request is submitted to Congress for the authorization of funds for the Department of Defense for the long-term lease or charter of aircraft, naval vessels, or combat vehicles authorized under this chapter, the Secretary of Defense—
(A) shall indicate in the request what portion of the requested funds is attributable to capital-hire; and
(B) shall reflect such portion in the appropriate procurement account in the request.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1825(a), (d), (e), Jan. 1, 2021, 134 Stat. 4206, 4207.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3673 (ARMED FORCES)
§ 3673. Limitation on indemnification
Funds appropriated to the Department of Defense may not be used to indemnify any person under the terms of a contract entered into under this chapter—
(1) for any amount paid or due by any person to the United States for any liability arising under the Internal Revenue Code of 1986; or
(2) to pay any attorneys’ fees in connection with such contract.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1825(a), (c), Jan. 1, 2021, 134 Stat. 4206.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3675 (ARMED FORCES)
§ 3675. Capital lease or lease-purchase treated as an acquisition
(a) In General.—
If a lease or charter covered by this chapter is a capital lease or a lease-purchase—
(1) the lease or charter shall be treated as an acquisition and shall be subject to all applicable statutory and regulatory requirements for the acquisition of aircraft, naval vessels, or combat vehicles; and
(2) funds appropriated to the Department of Defense for operation and maintenance may not be obligated or expended for the lease or charter.
(b) Definitions.—
In this section, the terms “capital lease” and “lease-purchase” have the meanings given those terms in Appendix B to Office of Management and Budget Circular A–11, as in effect on January 6, 2006.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1825(a), (g), Jan. 1, 2021, 134 Stat. 4206, 4208.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3676 (ARMED FORCES)
§ 3676. Guidelines
The Director of the Office of Management and Budget and the Secretary of the Treasury shall jointly issue guidelines for determining under what circumstances the Department of Defense may use lease or charter arrangements for aircraft, naval vessels, and combat vehicles rather than directly procuring such aircraft, vessels, and combat vehicles.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1825(a), (h), Jan. 1, 2021, 134 Stat. 4206, 4208.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3677 (ARMED FORCES)
§ 3677. Contracts for lease or use of vessels for a term of greater than two years but less than five years: prior notice to congressional committees
The Secretary of a military department may make a contract for the lease of a vessel or for the provision of a service through use by a contractor of a vessel, the term of which is for a period of greater than two years, but less than five years, only if—
(1) the Secretary has notified the congressional defense committees of the proposed contract and included in such notification—
(A) a detailed description of the terms of the proposed contract and a justification for entering into the proposed contract rather than obtaining the capability provided for by the lease, charter, or services involved through purchase of the vessel;
(B) a determination that entering into the proposed contract as a means of obtaining the vessel is the most cost-effective means of obtaining such vessel; and
(C) a plan for meeting the requirement provided by the proposed contract upon completion of the term of the lease contract; and
(2) a period of 60 days has expired following the date on which notice was received by such committees.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1825(a), (i), Jan. 1, 2021, 134 Stat. 4206, 4208.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3678 (ARMED FORCES)
§ 3678. Contracts with terms of 18 months or more: limitation
The Secretary of Defense or the Secretary of a military department may not enter into any contract with a term of 18 months or more, or extend or renew any contract for a term of 18 months or more, for any vessel, aircraft, or vehicle, through a lease, charter, or similar agreement, unless the Secretary has considered all costs of such contract (including estimated termination liability) and has determined in writing that the contract is in the best interest of the Government.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1825(a), (j), Jan. 1, 2021, 134 Stat. 4206, 4208.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3681 (ARMED FORCES)
§ 3681. Leasing of commercial vehicles and equipment
The Secretary of Defense may use leasing in the acquisition of commercial vehicles and equipment whenever the Secretary determines that such leasing is practicable and efficient.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1825(a), (k), Jan. 1, 2021, 134 Stat. 4206, 4208.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3701 (ARMED FORCES)
§ 3701. Definitions
(a) 1 Definitions.—
In this chapter:
(1) Cost or pricing data.—
The term “cost or pricing data” means all facts that, as of the date of agreement on the price of a contract (or the price of a contract modification), or, if applicable consistent with section 3706(a)(2) of this title, another date agreed upon between the parties, a prudent buyer or seller would reasonably expect to affect price negotiations significantly. Such term does not include information that is judgmental, but does include the factual information from which a judgment was derived.
(2) Subcontract.—
The term “subcontract” includes a transfer of commercial products or commercial services between divisions, subsidiaries, or affiliates of a contractor or a subcontractor.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (b), Jan. 1, 2021, 134 Stat. 4209.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3704 (ARMED FORCES)
§ 3704. Cost or pricing data on below-threshold contracts
(a) Authority to require submission.—
Subject to subsection (b), when certified cost or pricing data are not required to be submitted by section 3702 of this title for a contract, subcontract, or modification of a contract or subcontract, such data may nevertheless be required to be submitted by the head of the procuring activity, but only if the head of the procuring activity determines that such data are necessary for the evaluation by the agency of the reasonableness of the price of the contract, subcontract, or modification of a contract or subcontract. In any case in which the head of the procuring activity requires such data to be submitted under this section, the head of the procuring activity shall justify in writing the reason for such requirement.
(b) Exception.—
The head of the procuring activity may not require certified cost or pricing data to be submitted under this subsection for any contract or subcontract, or modification of a contract or subcontract, covered by the exceptions in paragraph (1) or (2) of section 3703(a) of this title.
(c) Delegation of authority prohibited.—
The head of a procuring activity may not delegate functions under this subsection.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (e), Jan. 1, 2021, 134 Stat. 4209, 4213.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3707 (ARMED FORCES)
§ 3707. Interest and penalties for certain overpayments
(a) In General.—
If the United States makes an overpayment to a contractor under a contract subject to this chapter and the overpayment was due to the submission by the contractor of defective cost or pricing data, the contractor shall be liable to the United States—
(1) for interest on the amount of such overpayment, to be computed—
(A) for the period beginning on the date the overpayment was made to the contractor and ending on the date the contractor repays the amount of such overpayment to the United States; and
(B) at the current rate prescribed by the Secretary of the Treasury under section 6621 of the Internal Revenue Code of 1986; and
(2) if the submission of such defective data was a knowing submission, for an additional amount equal to the amount of the overpayment.
(b) Liability Not Affected by Refusal to Submit Certification.—
Any liability under this section of a contractor that submits cost or pricing data but refuses to submit the certification required by section 3702(b) of this title with respect to the cost or pricing data shall not be affected by the refusal to submit such certification.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (h), Jan. 1, 2021, 134 Stat. 4209, 4216.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
10 U.S.C. § 3708 (ARMED FORCES)
§ 3708. Right to examine contractor records
For the purpose of evaluating the accuracy, completeness, and currency of cost or pricing data required to be submitted by this chapter, the head of an agency shall have the authority provided by section 3841(b)(2) of this title.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (i), Jan. 1, 2021, 134 Stat. 4209, 4216.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.