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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: Codification
text: The text of subsec. (f) of section 2401 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1825(g), was based on Pub. L. 109–163, div. A, title VIII, § 815(c)(2), Jan. 6, 2006, 119 Stat. 3382; Pub. L. 111–84, div. A, title X, § 1073(a)(24), Oct. 28, 2009, 123 Stat. 2473.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1825(g)(1)(A), transferred subsec. (f) of section 2401 of this title to this section, struck out subsec. (f) designation at beginning, and redesignated pars. (1) and (2) of such former subsec. (f) as subsecs. (a) and (b), respectively.
Subsec. (a). Pub. L. 116–283, § 1825(g)(2), after redesignation of section 2401(f)(1) of this title as subsec. (a) of this section, inserted heading, substituted “this chapter” for “this section” in introductory provisions, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively.
Subsec. (b). Pub. L. 116–283, § 1825(g)(3), after redesignation of section 2401(d)(2) of this title as subsec. (b) of this section, inserted heading and substituted “In this section” for “In this subsection”.
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: Codification
text: The text of subsec. (g) of section 2401 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1825(h), was based on Pub. L. 98–94, title XII, § 1202(a)(1), Sept. 24, 1983, 97 Stat. 679; Pub. L. 98–525, title XII, § 1232(a)(2), Oct. 19, 1984, 98 Stat. 2600; Pub. L. 109–163, div. A, title VIII, § 815(c)(1), Jan. 6, 2006, 119 Stat. 3382.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1825(h), transferred subsec. (g) of section 2401 of this title to this section and struck out subsec. (g) designation at beginning.
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: Codification
text: The text of subsec. (h) of section 2401 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1825(i), was based on Pub. L. 110–181, div. A, title X, § 1011, Jan. 28, 2008, 122 Stat. 303; Pub. L. 112–239, div. A, title VIII, § 821, title X, § 1076(f)(26), Jan. 2, 2013, 126 Stat. 1830, 1953.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1825(i), transferred subsec. (h) of section 2401 of this title to this section and struck out subsec. (h) designation at beginning.
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: Codification
text: The text of subsec. (b) of section 2401a of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1825(j), was based on Pub. L. 103–355, title III, § 3065(a)(1), Oct. 13, 1994, 108 Stat. 3337; Pub. L. 104–106, div. A, title VIII, § 807(a)(1)(A), Feb. 10, 1996, 110 Stat. 391.
heading: Prior Provisions
text: Provisions similar to those in this section were contained in Pub. L. 101–165, title IX, § 9081, Nov. 21, 1989, 103 Stat. 1147, which was set out as a note under section 2401 of this title, prior to repeal by Pub. L. 103–355, § 3065(b).
heading: Amendments
text: 2021—Pub. L. 116–283, § 1825(j), transferred subsec. (b) of section 2401a of this title to this section and struck out subsec. (b) designation and heading “Limitation on Contracts With Terms of 18 Months or More” at beginning.
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: Amendments
text: 2021—Pub. L. 116–283, § 1831(b), redesignated subsec. (h) of section 2306a of this title as subsec. (a) of this section and substituted “this chapter” for “this section” in introductory provisions and “section 3706(a)(2) of this title” for “subsection (e)(1)(B)” in par. (1).
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: Codification
text: The text of subsec. (g) of section 2306a of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1831(i), was based on Pub. L. 103–355, title I, § 1205, Oct. 13, 1994, 108 Stat. 3276.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1831(i), transferred subsec. (g) of section 2306a of this title to this section, struck out subsec. (g) designation and heading “Right of United States To Examine Contractor Records” at beginning, and substituted “this chapter” for “this section” and “section 3841(b)(2)” for “section 2313(a)(2)”.
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. § 3721 (ARMED FORCES)
§ 3721. Evaluating the reasonableness of price: guidance and training
[Reserved].
(Added Pub. L. 116–283, div. A, title XVIII, § 1831(k), Jan. 1, 2021, 134 Stat. 4217.)
heading: Prior Provisions
text: A prior section 3721, act Aug. 10, 1956, ch. 1041, 70A Stat. 214; Pub. L. 85–861, § 1(92)(A), Sept. 2, 1958, 72 Stat. 1482, related to hospital benefits for members of Army, other than of Regular Army, prior to repeal by Pub. L. 99–661, div. A, title VI, § 604(f)(1)(A), (g), Nov. 14, 1986, 100 Stat. 3877, 3878, applicable with respect to persons who, after Nov. 14, 1986, incur or aggravate an injury, illness, or disease or die.
heading: Effective Date
text: Section 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. § 3722 (ARMED FORCES)
§ 3722. Grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards
[Reserved].
(Added Pub. L. 116–283, div. A, title XVIII, § 1831(k), Jan. 1, 2021, 134 Stat. 4217.)
heading: Prior Provisions
text: A prior section 3722, acts Aug. 10, 1956, ch. 1041, 70A Stat. 214; Sept. 2, 1958, Pub. L. 85–861, § 1(92)(B), (C), 72 Stat. 1482, related to hospital and related benefits for members of a Citizens’ Military Training Camp and for members of Army not covered by section 3721 of this title, prior to repeal by Pub. L. 99–661, div. A, title VI, § 604(f)(1)(A), (g), Nov. 14, 1986, 100 Stat. 3877, 3878, applicable with respect to persons who, after Nov. 14, 1986, incur or aggravate an injury, illness, or disease or die.
heading: Effective Date
text: Section 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. § 3723 (ARMED FORCES)
§ 3723. Streamlining awards for innovative technology projects: pilot program
[Reserved].
(Added Pub. L. 116–283, div. A, title XVIII, § 1831(k), Jan. 1, 2021, 134 Stat. 4217.)
heading: Prior Provisions
text: A prior section 3723 was renumbered section 7263 of this title.
heading: Effective Date
text: Section 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. § 3741 (ARMED FORCES)
§ 3741. Definitions
In this subchapter:
(1) Compensation.—
The term “compensation”, for a year, means the total amount of wages, salary, bonuses and deferred compensation for the year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the year.
(2) Covered contract.—
The term “covered contract” means a contract for an amount in excess of $500,000 that is entered into by the head of an agency, except that such term does not include a fixed-price contract without cost incentives or any firm fixed-price contract for the purchase of commercial products or commercial services.
(3) Fiscal year.—
The term “fiscal year” means a fiscal year established by a contractor for accounting purposes.
(4) Head of the agency.—
The term “head of the agency” or “agency head” does not include the Secretary of a military department.
(5) Agency.—
The term “agency” means the Department of Defense, the Coast Guard, and the National Aeronautics and Space Administration.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (b)(1)–(3), Jan. 1, 2021, 134 Stat. 4218.)
heading: Codification
text: The text of pars. (1)(A), (2)–(4), and (6) of subsec. (l) of section 2324 of this title, which were transferred to this section and amended by Pub. L. 116–283, § 1832(b)(1)–(3), was based on Pub. L. 103–355, title II, § 2101(d), Oct. 13, 1994, 108 Stat. 3308; Pub. L. 105–85, div. A, title VIII, § 808(a)(2), Nov. 18, 1997, 111 Stat. 1836; Pub. L. 115–232, div. A, title VIII, § 836(c)(9), Aug. 13, 2018, 132 Stat. 1866.
heading: Prior Provisions
text: A prior section 3741 was renumbered section 7271 of this title.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1832(b)(1)–(3), redesignated pars. (4), (1)(A), (6), (2), and (3) of section 2324(l) of this title as pars. (1) to (5), respectively, of this section and inserted headings.
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. § 3742 (ARMED FORCES)
§ 3742. Adjustment of threshold amount of covered contract
Effective on October 1 of each year that is divisible by five, the amount set forth in section 3741(2) of this title shall be adjusted in accordance with section 1908 of title 41.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (b)(4), Jan. 1, 2021, 134 Stat. 4218, 4219.)
heading: Codification
text: The text of par. (1)(B) of subsec. (l) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(b)(4), was based on Pub. L. 103–355, title II, § 2101(d), Oct. 13, 1994, 108 Stat. 3308; Pub. L. 115–91, div. A, title VIII, § 811(e), Dec. 12, 2017, 131 Stat. 1460.
heading: Prior Provisions
text: A prior section 3742 was renumbered section 7272 of this title.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1832(b)(4), transferred subpar. (B) of section 2324(l)(1) of this title to this section, struck out subpar. (B) designation at beginning, and substituted “section 3741(2) of this title” for “subparagraph (A)”.
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. § 3746 (ARMED FORCES)
§ 3746. Applicability of regulations to subcontractors
The regulations referred to in sections 3744 and 3745(a) and (b) of this title shall require prime contractors of a covered contract, to the maximum extent practicable, to apply the provisions of such regulations to all subcontractors of the covered contract.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (e), Jan. 1, 2021, 134 Stat. 4218, 4221.)
heading: Codification
text: The text of subsec. (g) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(e), was based on Pub. L. 99–145, title IX, § 911(a)(1), Nov. 8, 1985, 99 Stat. 684; Pub. L. 103–355, title II, § 2101(a)(7), Oct. 13, 1994, 108 Stat. 3308.
Another section 1832(e) of Pub. L. 116–283 amended section 3745 of this title.
heading: Prior Provisions
text: A prior section 3746 was renumbered section 7276 of this title.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1832(e), transferred subsec. (g) of section 2324 of this title to this section, struck out subsec. (g) designation and heading “Applicability of Regulations to Subcontractors” at beginning, and substituted “sections 3744 and 3745(a) and (b) of this title” for “subsections (e) and (f)(1)”.
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. § 3747 (ARMED FORCES)
§ 3747. Contractor certification
(a) Content and Form.—
A proposal for settlement of indirect costs applicable to a covered contract shall include a certification by an official of the contractor that, to the best of the certifying official’s knowledge and belief, all indirect costs included in the proposal are allowable. Any such certification shall be in a form prescribed in the Federal Acquisition Regulation.
(b) Waiver.—
The head of the agency or the Secretary of the military department concerned may, in an exceptional case, waive the requirement for certification under subsection (a) in the case of any contract if the head of the agency or the Secretary—
(1) determines in such case that it would be in the interest of the United States to waive such certification; and
(2) states in writing the reasons for that determination and makes such determination available to the public.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (f), Jan. 1, 2021, 134 Stat. 4218, 4221.)
heading: Codification
text: The text of subsec. (h) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(f), was based on Pub. L. 99–145, title IX, § 911(a)(1), Nov. 8, 1985, 99 Stat. 684; Pub. L. 99–190, § 101(b) [title VIII, § 8112(a)(2)], Dec. 19, 1985, 99 Stat. 1185, 1223; Pub. L. 103–355, title II, § 2101(a)(8), Oct. 13, 1994, 108 Stat. 3308; Pub. L. 104–106, div. D, title XLIII, § 4321(b)(9)(B), Feb. 10, 1996, 110 Stat. 672.
heading: Prior Provisions
text: A prior section 3746 was renumbered section 7276 of this title.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1832(f)(1)(A), transferred subsec. (h) of section 2324 of this title to this section and struck out subsec. (h) designation and heading “Contractor Certification Required” at beginning.
Subsec. (a). Pub. L. 116–283, § 1832(f)(1)(B), (2), redesignated par. (1) of section 2324(h) of this title as subsec. (a) of this section and inserted heading.
Subsec. (b). Pub. L. 116–283, § 1832(f)(1)(B), (3), redesignated par. (2) of section 2324(h) of this title as subsec. (b) of this section, inserted heading, substituted “subsection (a)” for “paragraph (1)” in introductory provisions, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively.
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. § 3748 (ARMED FORCES)
§ 3748. Penalties for submission of cost known as not allowable
The submission to an agency of a proposal for settlement of costs for any period after such costs have been accrued that includes a cost that is expressly specified by statute or regulation as being unallowable, with the knowledge that such cost is unallowable, shall be subject to the provisions of section 287 of title 18 and section 3729 of title 31.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (g), Jan. 1, 2021, 134 Stat. 4218, 4222.)
heading: Codification
text: The text of subsec. (i) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(g), was based on Pub. L. 99–145, title IX, § 911(a)(1), Nov. 8, 1985, 99 Stat. 684; Pub. L. 103–355, title II, § 2101(a)(9), Oct. 13, 1994, 108 Stat. 3308.
heading: Prior Provisions
text: A prior section 3748 was renumbered section 7278 of this title.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1832(g), transferred subsec. (i) of section 2324 of this title to this section and struck out subsec. (i) designation and heading “Penalties for Submission of Cost Known as Not Allowable” at beginning.
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. § 3749 (ARMED FORCES)
§ 3749. Burden of proof on contractor
In a proceeding before the Armed Services Board of Contract Appeals, the United States Court of Federal Claims, or any other Federal court in which the reasonableness of indirect costs for which a contractor seeks reimbursement from the Department of Defense is in issue, the burden of proof shall be upon the contractor to establish that those costs are reasonable.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (h), Jan. 1, 2021, 134 Stat. 4218, 4222.)
heading: Codification
text: The text of subsec. (j) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(h), was based on Pub. L. 100–370, § 1(f)(3)(A), July 19, 1988, 102 Stat. 846; Pub. L. 103–355, title II, § 2101(a)(10), Oct. 13, 1994, 108 Stat. 3308.
heading: Prior Provisions
text: A prior section 3749 was renumbered section 7279 of this title.
heading: Amendments
text: 2021—Pub. L. 116–283, § 1832(h), transferred subsec. (j) of section 2324 of this title to this section and struck out subsec. (j) designation and heading “Contractor To Have Burden of Proof” at beginning.
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.