Source: https://codes.findlaw.com/us/title-10-armed-forces/10-usc-sect-2306b.html
Timestamp: 2020-06-07 04:17:03
Document Index: 338161700

Matched Legal Cases: ['§ 2306', '§ 2306', '§ 2306', '§ 2306', '§ 2306', '§ 2306', '§ 2306']

10 U.S.C. § 2306b - U.S. Code Title 10. Armed Forces § 2306b | FindLaw
§ 2306b
10 U.S.C. § 2306b - U.S. Code - Unannotated Title 10. Armed Forces § 2306b. Multiyear contracts: acquisition of property
(a) In general. --To the extent that funds are otherwise available for obligation, the head of an agency may enter into multiyear contracts for the purchase of property whenever the head of that agency finds each of the following:
(b) Regulations.--(1) Each official named in paragraph (2) shall prescribe acquisition regulations for the agency or agencies under the jurisdiction of such official to promote the use of multiyear contracting as authorized by subsection (a) in a manner that will allow the most efficient use of multiyear contracting.
(c) Contract cancellations. --The regulations may provide for cancellation provisions in multiyear contracts to the extent that such provisions are necessary and in the best interests of the United States. The cancellation provisions may include consideration of both recurring and nonrecurring costs of the contractor associated with the production of the items to be delivered under the contract.
(d) Participation by subcontractors, vendors, and suppliers. --In order to broaden the defense industrial base, the regulations shall provide that, to the extent practicable--
(e) Protection of existing authority. --The regulations shall provide that, to the extent practicable, the administration of this section, and of the regulations prescribed under this section, shall not be carried out in a manner to preclude or curtail the existing ability of an agency--
(f) Cancellation or termination for insufficient funding. --In the event funds are not made available for the continuation of a contract made under this section into a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid from--
(g) Contract cancellation ceilings exceeding $100,000,000.--(1) Before any contract described in subsection (a) 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 subsection (a) 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, as part of the certification required by subsection (i)(1)(A), give written notification to the congressional defense committees of--
(h) Defense acquisitions of weapon systems. --In the case of the Department of Defense, the authority under subsection (a) includes authority to enter into the following multiyear contracts in accordance with this section:
(i) Defense acquisitions specifically authorized by law.-- (1) In the case of the Department of Defense, a multiyear contract in an amount equal to or greater than $500,000,000 may not be entered into under this section unless the contract is specifically authorized by law in an Act other than an appropriations Act.
(B) Confirmation that the preliminary findings of the agency head under subparagraph (A) were made after the completion of a cost analysis performed by the Director of Cost Assessment and Program Evaluation for the purpose of section 2334(e)(1) of this title, and that the analysis supports those preliminary findings.
(B) The Secretary's determination under subparagraph (A) was made after completion of a cost analysis conducted on the basis of section 2334(e)(2) of this title, and the analysis supports the determination.
(j) Defense contract options for varying quantities. --The Secretary of Defense may instruct the Secretary of the military department concerned to incorporate into a proposed multiyear contract negotiated priced options for varying the quantities of end items to be procured over the period of the contract.
(k) Multiyear contract defined. --For the purposes of this section, a multiyear contract is a contract for the purchase of property for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made.
(l) Various additional requirements with respect to multiyear defense contracts.--(1)(A) The head of an agency may not initiate a contract described in subparagraph (B) unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract.
(i) A multiyear contract--
(4) Not later than the date of the submission of the President's budget request under section 1105 of title 31 , the Secretary of Defense shall submit a report to the congressional defense committees each year, providing the following information with respect to each multiyear contract (and each extension of an existing multiyear contract) entered into, or planned to be entered into, by the head of an agency during the current or preceding year, shown for each year in the current future-years defense program and in the aggregate over the period of the current future-years defense program:
(A) The amount of total obligational authority under the contract (or contract extension) and the percentage that such amount represents of--
(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--
(C) The amount equal to the sum of the amounts under subparagraphs (A) and (B), and the percentage that such amount represents of--
(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.
(m) Increased funding and reprogramming requests. --Any request for increased funding for the procurement of a major system under a multiyear contract authorized under this section shall be accompanied by an explanation of how the request for increased funding affects the determinations made by the Secretary under subsection (i).
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