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10 U.S.C. § 4957 (ARMED FORCES)
§ 4957. Advancing small business growth
(a) Contract Clause Required.—
(1) The Under Secretary of Defense for Acquisition and Sustainment shall require the clause described in paragraph (2) to be included in each covered contract awarded by the Department of Defense.
(2) The clause described in this paragraph is a clause that—
(A) requires the contractor to acknowledge that acceptance of the contract may cause the business to exceed the applicable small business size standards (established pursuant to section 3(a) of the Small Business Act) for the industry concerned and that the contractor may no longer qualify as a small business concern for that industry; and
(B) encourages the contractor to develop capabilities and characteristics typically desired in contractors that are competitive as an other-than-small business in that industry.
(b) Availability of Assistance.—
Covered small businesses may be provided assistance as part of any procurement technical assistance furnished pursuant to this chapter.
(c) Definitions.—
In this section:
(1) The term “covered contract” means a contract—
(A) awarded to a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act; and
(B) with an estimated annual value—
(i) that will exceed the applicable receipt-based small business size standard; or
(ii) if the contract is in an industry with an employee-based size standard, that will exceed $70,000,000.
(2) The term “covered small business” means a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act that has entered into a contract with the Department of Defense that includes a contract clause described in subsection (a)(2).
(Added Pub. L. 113–66, div. A, title XVI, § 1611(a)(1)(B), Dec. 26, 2013, 127 Stat. 946, § 2419; amended Pub. L. 116–92, div. A, title IX, § 902(63), Dec. 20, 2019, 133 Stat. 1550; renumbered § 4957, Pub. L. 116–283, div. A, title XVIII, § 1872(a)(10), Jan. 1, 2021, 134 Stat. 4289.)
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. § 4959 (ARMED FORCES)
§ 4959. Administrative and other costs
The Director of the Defense Logistics Agency may use, out of the amount appropriated for a fiscal year for operation and maintenance for the procurement technical assistance program authorized by this chapter—
(1) an amount not exceeding three percent of such amount to defray the expenses of administering the provisions of this chapter during such fiscal year; and
(2) an amount determined appropriate by the Director to assist eligible entities in payment of costs of eligible entities—
(A) for meetings to discuss best practices for the improvement of the operations of procurement technical assistance centers; and
(B) for membership dues for any association of such centers created by eligible entities, training fees and associated travel for training to carry out the purposes of this chapter, and voluntary participation on any committees or board of such an association.
(Added Pub. L. 101–510, div. A, title VIII, § 814(a)(1)(B), Nov. 5, 1990, 104 Stat. 1596, § 2417; amended Pub. L. 115–232, div. A, title VIII, § 859(a), Aug. 13, 2018, 132 Stat. 1892; renumbered § 4959 and amended Pub. L. 116–283, div. A, title X, § 1081(a)(41), title XVIII, § 1872(a)(11), Jan. 1, 2021, 134 Stat. 3873, 4289.)
heading: Effective Date of 2021 Amendment
text: Amendment by section 1872(a)(11) of 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. § 4971 (ARMED FORCES)
§ 4971. Establishment of loan guarantee program
(a) Establishment.—
In order to meet the national security objectives in section 4811(a) 1 of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring a lender against losses of principal or interest, or both principal and interest, arising out of the financing of the sale or long-term lease of defense articles, defense services, or design and construction services to a country referred to in subsection (b).
(b) Covered Countries.—
The authority under subsection (a) applies with respect to the following countries:
(1) A member nation of the North Atlantic Treaty Organization (NATO).
(2) A country designated as of March 31, 1995, as a major non-NATO ally pursuant to section 2350a(i)(3) of this title, as in effect on that date.
(3) A country in Central Europe that, as determined by the Secretary of State—
(A) has changed its form of national government from a nondemocratic form of government to a democratic form of government since October 1, 1989; or
(B) is in the process of changing its form of national government from a nondemocratic form of government to a democratic form of government.
(4) A noncommunist country that was a member nation of the Asia Pacific Economic Cooperation (APEC) as of October 31, 1993.
(c) Authority Subject to Provisions of Appropriations.—
The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.
(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 475, § 2540; amended Pub. L. 108–375, div. A, title X, § 1084(d)(21), Oct. 28, 2004, 118 Stat. 2062; renumbered § 4971 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1873(b), (c)(1), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4290, 4294.)
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. § 4972 (ARMED FORCES)
§ 4972. Transferability
A guarantee issued under this subchapter shall be fully and freely transferable.
(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540a; renumbered § 4972, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
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. § 4973 (ARMED FORCES)
§ 4973. Limitations
(a) Terms and Conditions of Loan Guarantees.—
In issuing a guarantee under this subchapter for a medium-term or long-term loan, the Secretary may not offer terms and conditions more beneficial than those that would be provided to the recipient by the Export-Import Bank of the United States under similar circumstances in conjunction with the provision of guarantees for nondefense articles and services.
(b) Losses Arising From Fraud or Misrepresentation.—
No payment may be made under a guarantee issued under this subchapter for a loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.
(c) No Right of Acceleration.—
The Secretary of Defense may not accelerate any guaranteed loan or increment, and may not pay any amount, in respect of a guarantee issued under this subchapter, other than in accordance with the original payment terms of the loan.
(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540b; renumbered § 4973, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
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. § 4974 (ARMED FORCES)
§ 4974. Fees charged and collected
(a) Exposure Fees.—
The Secretary of Defense shall charge a fee (known as “exposure fee”) for each guarantee issued under this subchapter.
(b) Amount of Exposure Fee.—
To the extent that the cost of the loan guarantees under this subchapter is not otherwise provided for in appropriations Acts, the fee imposed under subsection (a) with respect to a loan guarantee shall be fixed in an amount that is sufficient to meet potential liabilities of the United States under the loan guarantee.
(c) Payment Terms.—
The fee under subsection (a) for each guarantee shall become due as the guarantee is issued. In the case of a guarantee for a loan which is disbursed incrementally, and for which the guarantee is correspondingly issued incrementally as portions of the loan are disbursed, the fee shall be paid incrementally in proportion to the amount of the guarantee that is issued.
(d) Administrative Fees.—
(1) The Secretary of Defense shall charge a fee for each guarantee issued under this subchapter to reflect the additional administrative costs of the Department of Defense that are directly attributable to the administration of the program under this subchapter. Such fees shall be credited to a special account in the Treasury. Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(2)
(A) If for any fiscal year amounts in the special account established under paragraph (1) are not available (or are not anticipated to be available) in a sufficient amount for administrative expenses of the Department of Defense for that fiscal year that are directly attributable to the administration of the program under this subchapter, the Secretary may use amounts currently available for operations and maintenance for Defense-wide activities, not to exceed $500,000 in any fiscal year, for those expenses.
(B) The Secretary shall, from funds in the special account established under paragraph (1), replenish operations and maintenance accounts for amounts expended under subparagraph (A) as soon as the Secretary determines practicable.
(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540c; amended Pub. L. 106–398, § 1 [[div. A], title X, § 1081(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A–284; renumbered § 4974, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
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. § 4975 (ARMED FORCES)
§ 4975. Definitions
In this subchapter:
(1) The terms “defense article”, “defense services”, and “design and construction services” have the meanings given those terms in section 47 of the Arms Export Control Act (22 U.S.C. 2794).
(2) The term “cost”, with respect to a loan guarantee, has the meaning given that term in section 502 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 661a).
(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 477, § 2540d; renumbered § 4975, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
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. § 4981 (ARMED FORCES)
§ 4981. Establishment of loan guarantee program
(a) Establishment.—
In order to meet the national security objectives in section 4811(a) 1 of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring lenders against losses of principal or interest, or both principal and interest, for loans made to qualified commercial firms to fund, in whole or in part, any of the following activities:
(1) The improvement of the protection of the critical infrastructure of the commercial firms.
(2) The refinancing of improvements previously made to the protection of the critical infrastructure of the commercial firms.
(b) Qualified Commercial Firms.—
For purposes of this section, a qualified commercial firm is a company or other business entity (including a consortium of such companies or other business entities, as determined by the Secretary) that the Secretary determines—
(1) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States;
(2) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which—
(A) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations or agreements; and
(B) affords adequate and effective protection for the intellectual property rights of companies incorporated in the United States;
(3) provides technology products or services critical to the operations of the Department of Defense;
(4) meets standards of prevention of cyberterrorism applicable to the Department of Defense; and
(5) agrees to submit the report required under section 4985 of this title.
(c) Loan Limits.—
The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed $10,000,000, with respect to all borrowers.
(d) Goals and Standards.—
The Secretary shall prescribe regulations setting forth goals for the use of the loan guarantees provided under this section and standards for evaluating whether those goals are met by each entity receiving such loan guarantees.
(e) Authority Subject to Provisions of Appropriations.—
The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–258, § 2541; renumbered § 4981 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1873(b), (c)(2), (e)(1), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4290, 4294.)
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. § 4982 (ARMED FORCES)
§ 4982. Fees charged and collected
(a) Fee Required.—
The Secretary of Defense shall assess a fee for providing a loan guarantee under this subchapter.
(b) Amount of Fee.—
The amount of the fee shall be not less than 75 percent of the amount incurred by the Secretary to provide the loan guarantee.
(c) Special Account.—
(1) Such fees shall be credited to a special account in the Treasury.
(2) Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(3)
(A) If for any fiscal year amounts in the special account established under paragraph (1) are not available (or are not anticipated to be available) in a sufficient amount for administrative expenses of the Department of Defense for that fiscal year that are directly attributable to the administration of the program under this subchapter, the Secretary may use amounts currently available for operations and maintenance for Defense-wide activities, not to exceed $500,000 in any fiscal year, for those expenses.
(B) The Secretary shall, from funds in the special account established under paragraph (1), replenish operations and maintenance accounts for amounts expended under subparagraph (A).
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–259, § 2541a; renumbered § 4982, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), Jan. 1, 2021, 134 Stat. 4290.)
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. § 4983 (ARMED FORCES)
§ 4983. Administration
(a) Agreements Required.—
The Secretary of Defense may enter into one or more agreements, each with an appropriate Federal or private entity, under which such entity may, under this subchapter—
(1) process applications for loan guarantees;
(2) administer repayment of loans; and
(3) provide any other services to the Secretary to administer this subchapter.
(b) Treatment of Costs.—
The costs of such agreements shall be considered, for purposes of the special account established under section 4982(c), to be costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–259, § 2541b; renumbered § 4983 and amended Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), (e)(2), Jan. 1, 2021, 134 Stat. 4290.)
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. § 4984 (ARMED FORCES)
§ 4984. Transferability, additional limitations, and definition
The following provisions of subchapter I of this chapter apply to guarantees issued under this subchapter:
(1) Section 4972, relating to transferability of guarantees.
(2) Subsections (b) and (c) of section 4973, providing limitations.
(3) Section 4975(2), providing a definition of the term “cost”.
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–260, § 2541c; amended Pub. L. 107–107, div. A, title X, § 1048(a)(24), Dec. 28, 2001, 115 Stat. 1224; renumbered § 4984 and amended Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), (e)(3), Jan. 1, 2021, 134 Stat. 4290.)
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. § 4985 (ARMED FORCES)
§ 4985. Reports
The Secretary of Defense shall require each qualified commercial firm for which a loan is guaranteed under this subchapter to submit to the Secretary a report on the improvements financed or refinanced with the loan. The report shall include an assessment of the value of the improvements for the protection of the critical infrastructure of that commercial firm. The Secretary shall prescribe the time for submitting the report.
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–260, § 2541d; amended Pub. L. 108–136, div. A, title X, § 1031(a)(25), Nov. 24, 2003, 117 Stat. 1598; renumbered § 4985, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), Jan. 1, 2021, 134 Stat. 4290.)
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. § 7452 (ARMED FORCES)
§ 7452. Cadets: hazing
(a) Subject to the approval of the Secretary of the Army, the Superintendent of the Academy shall issue regulations—
(1) defining hazing;
(2) designed to prevent that practice; and
(3) prescribing dismissal, suspension, or other adequate punishment for violations.
(b) If a cadet who is charged with violating a regulation issued under subsection (a), the penalty for which is or may be dismissal from the Academy, requests in writing a trial by a general court-martial, he may not be dismissed for that offense except under sentence of such a court.
(c) A cadet dismissed from the Academy for hazing may not be reappointed to the Corps of Cadets, and is ineligible for appointment as a commissioned officer in a regular component of the Army, Navy, Air Force, Marine Corps, or Space Force, until two years after the graduation of his class.
(Aug. 10, 1956, ch. 1041, 70A Stat. 244, § 4352; renumbered § 7452, Pub. L. 115–232, div. A, title VIII, § 808(c)(1), Aug. 13, 2018, 132 Stat. 1839; amended Pub. L. 116–283, div. A, title IX, § 924(c)(1)(A), Jan. 1, 2021, 134 Stat. 3826.)
text: Historical and Revision Notes
Revised section
Source (U.S. Code)
Source (Statutes at Large)
4352(a)
4352(b)
4352(c)
10:1163 (1st par.).
10:1163 (1st 32 words of last par.).
10:1163 (last par., less 1st 32 words).
Mar. 2, 1901, ch. 804 (2d proviso under “Permanent Establishment”); restated Apr. 19, 1910, ch. 174 (38th par. under “Buildings and Grounds”), 36 Stat. 323.
In subsection (a), the word “violations” is substituted for the words “infractions of the same”. The words “to embody a clear” are omitted as surplusage.
In subsection (b), the words “the penalty for which is or may be” are substituted for the words “which would involve”. The words “may not be dismissed for that offense except under sentence of such a court” are substituted for the words “shall be granted”.
In subsection (c), the words “a regular component” are inserted, since the source statute historically applied only to the regular components.
heading: Amendments
text: 2021—Subsec. (c). Pub. L. 116–283 substituted “Marine Corps, or Space Force” for “or Marine Corps”.
2018—Pub. L. 115–232 renumbered section 4352 of this title as this section.
heading: Effective Date of 2018 Amendment
text: Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.