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: Codification
text: The text of subsec. (e) of section 2306c of this title, which was transferred to this section, redesignated as subsec. (a), and amended by Pub. L. 116–283, § 1822(p), was based on Pub. L. 106–398, § 1 [[div. A], title VIII, § 802(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–203.
The text of pars. (4) and (5) of subsec. (d) of section 2306c of this title, which were transferred to this section, redesignated as pars. (1) and (2), respectively, of subsec. (b), and amended by Pub. L. 116–283, § 1822(q), was based on Pub. L. 106–398, § 1 [[div. A], title VIII, § 802(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–203; Pub. L. 108–375, div. A, title VIII, § 814(b), Oct. 28, 2004, 118 Stat. 2014.
heading: Prior Provisions
text: A prior section 3533 was renumbered section 7213 of this title.
heading: Amendments
text: 2021—Subsec. (a). Pub. L. 116–283, § 1822(p), redesignated subsec. (e) of section 2306c of this title as subsec. (a) of this section.
Subsec. (b). Pub. L. 116–283, § 1822(q)(1), inserted subsec. (b) designation and heading.
Subsec. (b)(1). Pub. L. 116–283, § 1822(q)(2), (3), redesignated par. (4) of section 2306c(d) of this title as par. (1) of subsec. (b) of this section and substituted “sections 3531(a) of this title” for “subsection (a)”.
Subsec. (b)(2). Pub. L. 116–283, § 1822(q)(2), (4), redesignated par. (5) of section 2306c(d) of this title as par. (2) of subsec. (b) of this section and substituted “sections 3531(a) of this title” for “subsection (a)” and “paragraph (1)” for “paragraph (4)” in introductory provisions.
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.