10 U.S.C. § 4174 (ARMED FORCES)
§ 4174. Contracts: acquisition, construction, or furnishing of test facilities and equipment
(a) A contract of a military department for research or development, or both, may provide for the acquisition or construction by, or furnishing to, the contractor, of research, developmental, or test facilities and equipment that the Secretary of the military department concerned determines to be necessary for the performance of the contract. The acquisition or construction of these research, developmental, or test facilities shall be subject to the cost principles applicable to allowable contract expenses. The facilities and equipment, and specialized housing for them, may be acquired or constructed at the expense of the United States, and may be lent or leased to the contractor with or without reimbursement, or may be sold to him at fair value. This subsection does not authorize new construction or improvements having general utility. The Secretary of Defense and the Secretaries of the military departments shall promulgate regulations necessary to give full force and effect to this section.
(b) Facilities that would not be readily removable or separable without unreasonable expense or unreasonable loss of value may not be installed or constructed under this section on property not owned by the United States, unless the contract contains—
(1) a provision for reimbursing the United States for the fair value of the facilities at the completion or termination of the contract or within a reasonable time thereafter;
(2) an option in the United States to acquire the underlying land; or
(3) an alternative provision that the Secretary concerned considers to be adequate to protect the interests of the United States in the facilities.
(c) Proceeds of sales or reimbursements under this section shall be paid into the Treasury as miscellaneous receipts, except to the extent otherwise authorized by law with respect to property acquired by the contractor.
(Aug. 10, 1956, ch. 1041, 70A Stat. 134, § 2353; Pub. L. 115–232, div. B, title XXVIII, § 2801, Aug. 13, 2018, 132 Stat. 2260; renumbered § 4174 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1844(b)(1), 1845(b), Jan. 1, 2021, 134 Stat. 4245, 4247; Pub. L. 117–81, div. A, title XVII, § 1701(u)(5)(B), (6)(B), Dec. 27, 2021, 135 Stat. 2154.)
text: Historical and Revision Notes
Revised section
Source (U.S. Code)
Source (Statutes at Large)
2353(a)
5:235e (1st sentence; and 2d sentence, less 2d and last provisos).
5:475j (1st sentence; and 2d sentence, less 2d and last provisos).
July 16, 1952, ch. 882, § 4 (less 3d and last sentences), 66 Stat. 725.
5:628e (1st sentence; and 2d sentence, less 2d and last provisos).
2353(b)
5:235e (2d proviso of 2d sentence).
5:475j (2d proviso of 2d sentence).
5:628e (2d proviso of 2d sentence).
2353(c)
5:235e (last proviso of 2d sentence).
5:475j (last proviso of 2d sentence).
5:628e (last proviso of 2d sentence).
In subsection (a), the words “furnished to” and “for the use thereof” are omitted as surplusage.
In subsections (a) and (b), the words “United States” are substituted for the word “Government”.
In subsection (b), the introductory clause is substituted for 5:235e (words of 2d proviso before clause (1)), 475j, and 628e. The words “that * * * considers” are substituted for the words “as will in the opinion”. The words “an alternative” are substituted for the words “such other”.
In subsection (c), the words “Proceeds of” are substituted for the words “That all moneys arising from”.
heading: Editorial Notes
heading: Amendments
text: 2021—Pub. L. 116–283, § 1845(b), as amended by Pub. L. 117–81, § 1701(u)(6)(B), renumbered section 2353 of this title as this section.
Pub. L. 116–283, § 1844(b)(1), which directed the renumbering of section 2353 of this title as section 4141 instead of this section, was repealed by Pub. L. 117–81, § 1701(u)(5)(B).
2018—Subsec. (a). Pub. L. 115–232 inserted after first sentence “The acquisition or construction of these research, developmental, or test facilities shall be subject to the cost principles applicable to allowable contract expenses.” and at end “The Secretary of Defense and the Secretaries of the military departments shall promulgate regulations necessary to give full force and effect to this section.”
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a Technical, Conforming, and Clerical Amendments Related to Title XVIII of the Fiscal Year 2021 NDAA note preceding section 3001 of this title and note below.
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.