10 U.S.C. § 3509 (ARMED FORCES)
§ 3509. Department of defense contracts: multiyear contracts with value in excess of $500,000,000
(a) Limitation.—
The head of an agency may not initiate a multiyear procurement contract for any system (or component thereof) if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided in an appropriations Act.
(b) Report Required Before Entering Into Contract Above Threshold.—
(1) In general.—
The head of an agency may not enter into a multiyear contract (or extend an existing multiyear contract), the value of which would exceed $500,000,000 (when entered into or when extended, as the case may be), until the Secretary of Defense submits to the congressional defense committees a report containing the information described in paragraph (2) with respect to the contract (or contract extension).
(2) Matter to be included in report.—
Each report required by paragraph (1) with respect to a contract (or contract extension) shall contain the following:
(A) The amount of total obligational authority under the contract (or contract extension) and the percentage that such amount represents of—
(i) the applicable procurement account; and
(ii) the agency procurement total.
(B) The amount of total obligational authority under all multiyear procurements of the agency concerned (determined without regard to the amount of the multiyear contract (or contract extension)) under multiyear contracts in effect at the time the report is submitted and the percentage that such amount represents of—
(i) the applicable procurement account; and
(ii) the agency procurement total.
(C) The amount equal to the sum of the amounts under subparagraphs (A) and (B), and the percentage that such amount represents of—
(i) the applicable procurement account; and
(ii) the agency procurement total.
(D) The amount of total obligational authority under all Department of Defense multiyear procurements (determined without regard to the amount of the multiyear contract (or contract extension)), including any multiyear contract (or contract extension) that has been authorized by the Congress but not yet entered into, and the percentage that such amount represents of the procurement accounts of the Department of Defense treated in the aggregate.
(3) Definitions.—
In this subsection:
(A) The term “applicable procurement account” means, with respect to a multiyear procurement contract (or contract extension), the appropriation account from which payments to execute the contract will be made.
(B) The term “agency procurement total” means the procurement accounts of the agency entering into a multiyear procurement contract (or contract extension) treated in the aggregate.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1822(a), (j)(1)(A), (5), (6), Jan. 1, 2021, 134 Stat. 4197, 4201, 4202.)
heading: Codification
text: The text of pars. (3), (4), (5), and (9) of subsec. (l) of section 2306b of this title, which were transferred to this section and amended by Pub. L. 116–283, § 1822(j)(1)(A), (5), (6), was based on Pub. L. 105–85, div. A, title VIII, § 806(b)(1), Nov. 18, 1997, 111 Stat. 1834; Pub. L. 106–65, div. A, title VIII, § 809, Oct. 5, 1999, 113 Stat. 705; Pub. L. 106–398, § 1 [[div. A], title VIII, § 806], Oct. 30, 2000, 114 Stat. 1654, 1654A–207; Pub. L. 108–136, div. A, title X, § 1043(b)(10), Nov. 24, 2003, 117 Stat. 1611; Pub. L. 115–91, div. A, title X, § 1051(a)(14), Dec. 12, 2017, 131 Stat. 1561.
heading: Amendments
text: 2021—Subsec. (a). Pub. L. 116–283, § 1822(j)(1)(A)(i), (5), redesignated subsec. (l)(3) of section 2306b of this title as subsec. (a) of this section and inserted heading.
Subsec. (b). Pub. L. 116–283, § 1822(j)(1)(A)(ii), inserted subsec. (b) designation and heading.
Subsec. (b)(1). Pub. L. 116–283, § 1822(j)(1)(A)(iii), (6)(A), redesignated par. (5) of section 2306b(l) of this title as par. (1) of subsec. (b) of this section, inserted heading, and substituted “paragraph (2)” for “paragraph (4)”.
Subsec. (b)(2). Pub. L. 116–283, § 1822(j)(1)(A)(iv), (6)(B), redesignated par. (4) of section 2306b(l) of this title as par. (2) of subsec. (b) of this section, inserted heading, and substituted “Each report required by paragraph (1)” for “Each report required by paragraph (5)” in introductory provisions.
Subsec. (b)(3). Pub. L. 116–283, § 1822(j)(1)(A)(iv), (6)(C), redesignated par. (9) of section 2306b(l) of this title as par. (3) of subsec. (b) of this section and inserted heading.
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.