Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2326&num=0&edition=prelim
Timestamp: 2020-07-02 07:05:09
Document Index: 320880152

Matched Legal Cases: ['§ 2326', '§101', '§908', '§101', '§908', '§908', '§3', '§1622', '§701', '§1505', '§803', '§811', '§815', '§902', '§815', '§811', '§1505', '§101', '§908', '§101', '§908', '§908', '§3', '§815', '§13004', '§13005', '§812', '§809', '§101', '§908', '§101', '§908', '§908', '§3', '§4322', '§812']

[USC02] 10 USC 2326: Undefinitized contractual actions: restrictions
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10 USC 2326: Undefinitized contractual actions: restrictions Text contains those laws in effect on July 1, 2020
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(a) In General.-The head of an agency may not enter into an undefinitized contractual action unless the request to the head of the agency for authorization of the contractual action includes a description of the anticipated effect on requirements of the military department concerned if a delay is incurred for purposes of determining contractual terms, specifications, and price before performance is begun under the contractual action.
(b) Limitations on Obligation of Funds.-(1) A contracting officer of the Department of Defense may not enter into an undefinitized contractual action unless the contractual action provides for agreement upon contractual terms, specifications, and price by the earlier of-
(c) Limitation on Unilateral Definitization by Contracting Officer.-With respect to any undefinitized contractual action with a value greater than $50,000,000, if agreement is not reached on contractual terms, specifications, and price within the period or by the date provided in subsection (b)(1), the contracting officer may not unilaterally definitize those terms, specifications, or price over the objection of the contractor until-
(d) Inclusion of Non-Urgent Requirements.-Requirements for spare parts and support equipment that are not needed on an urgent basis may not be included in an undefinitized contractual action for spare parts and support equipment that are needed on an urgent basis unless the head of the agency approves such inclusion as being-
(e) Modification of Scope.-The scope of an undefinitized contractual action under which performance has begun may not be modified unless the head of the agency approves such modification as being-
(f) Allowable Profit.-(1) The head of an agency shall ensure that the profit allowed on an undefinitized contractual action for which the final price is negotiated after a substantial portion of the performance required is completed reflects-
(g) Time Limit.-No undefinitized contractual action may extend beyond 90 days without a written determination by the Secretary of the military department concerned, the head of the Defense Agency concerned, the commander of the combatant command concerned, or the Under Secretary of Defense for Acquisition and Sustainment (as applicable) that it is in the best interests of the military department, the Defense Agency, the combatant command, or the Department of Defense, respectively, to continue the action.
(h) Foreign Military Contracts.-(1) Except as provided in paragraph (2), a contracting officer of the Department of Defense may not enter into an undefinitized contractual action for a foreign military sale unless the contractual action provides for agreement upon contractual terms, specifications, and price by the end of the 180-day period described in subsection (b)(1)(A).
(i) Applicability.-This section does not apply to the Coast Guard or the National Aeronautics and Space Administration.
(Added Pub. L. 99–500, §101(c) [title X, §908(d)(1)(A)], Oct. 18, 1986, 100 Stat. 1783–82 , 1783-140, and Pub. L. 99–591, §101(c) [title X, §908(d)(1)(A)], Oct. 30, 1986, 100 Stat. 3341–82 , 3341-140; Pub. L. 99–661, div. A, title IX, formerly title IV, §908(d)(1)(A), Nov. 14, 1986, 100 Stat. 3920 , renumbered title IX, Pub. L. 100–26, §3(5), Apr. 21, 1987, 101 Stat. 273 ; amended Pub. L. 101–189, div. A, title XVI, §1622(c)(6), Nov. 29, 1989, 103 Stat. 1604 ; Pub. L. 102–25, title VII, §701(d)(5), Apr. 6, 1991, 105 Stat. 114 ; Pub. L. 103–355, title I, §1505, Oct. 13, 1994, 108 Stat. 3298 ; Pub. L. 105–85, div. A, title VIII, §803(a), Nov. 18, 1997, 111 Stat. 1831 ; Pub. L. 114–328, div. A, title VIII, §811, Dec. 23, 2016, 130 Stat. 2268 ; Pub. L. 115–91, div. A, title VIII, §815(a), (b), Dec. 12, 2017, 131 Stat. 1462 ; Pub. L. 116–92, div. A, title IX, §902(50), Dec. 20, 2019, 133 Stat. 1548 .)
2019-Subsec. (g). Pub. L. 116–92 substituted "Under Secretary of Defense for Acquisition and Sustainment" for "Under Secretary of Defense for Acquisition, Technology, and Logistics".
2017-Subsec. (b)(3). Pub. L. 115–91, §815(b), substituted "subsection (h)" for "subsection (g)".
2016-Subsec. (e). Pub. L. 114–328, §811(1), designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), and added par. (2).
1997-Subsec. (b)(4). Pub. L. 105–85 amended par. (4) generally. Prior to amendment, par. (4) read as follows: "The head of an agency may waive the provisions of this subsection with respect to a contract of that agency if such head of an agency determines that the waiver is necessary in order to support a contingency operation."
1994-Subsec. (b). Pub. L. 103–355, §1505(a)(1), struck out "and expenditure" after "obligation" in heading.
1991-Subsec. (g)(1)(B). Pub. L. 102–25 substituted "in an amount not in excess of the amount of the small purchase threshold" for "of less than $25,000".
1989-Subsec. (g)(1)(D). Pub. L. 101–189 substituted "Congressionally mandated" for "Congressionally-mandated".
Pub. L. 99–500, §101(c) [title X, §908(d)(2)], Oct. 18, 1986, 100 Stat. 1783–82 , 1783-142, Pub. L. 99–591, §101(c) [title X, §908(d)(2)], Oct. 30, 1986, 100 Stat. 3341–82 , 3341-142, and Pub. L. 99–661, div. A, title IX, formerly title IV, §908(d)(2), Nov. 14, 1986, 100 Stat. 3921 , renumbered title IX, Pub. L. 100–26, §3(5), Apr. 21, 1987, 101 Stat. 273 , provided that: "Section 2326 of title 10, United States Code (as added by subsection (d)(1)), applies to undefinitized contractual actions that are entered into after the end of the 180-day period beginning on the date of the enactment of this Act [Oct. 18, 1986]."
Pub. L. 115–91, div. A, title VIII, §815(c), Dec. 12, 2017, 131 Stat. 1462 , provided that: "Not later than 120 days after the date of the enactment of this Act [Dec. 12, 2017], the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to implement section 2326 of title 10, United States Code, as amended by this section."
Relaxation of Undefinitized Contract Action Limitations and Restrictions Related to National Emergency for Coronavirus Disease 2019
Pub. L. 116–136, div. B, title III, §13004, Mar. 27, 2020, 134 Stat. 522 , provided that:
"(a) Section 2326(b)(3) of title 10, United States Code, shall not apply to any undefinitized contract action of the Department of Defense related to the national emergency for the Coronavirus Disease 2019 (COVID–19).
"(b) In this section, the term 'undefinitized contract action' has the meaning given that term in section 2326(j)(6) of title 10, United States Code [probably means section 2326(j)(1) of title 10, United States Code, which defines "undefinitized contractual action"]."
Pub. L. 116–136, div. B, title III, §13005, Mar. 27, 2020, 134 Stat. 522 , provided that:
"(a) The head of an agency may waive the provisions of section 2326(b) of title 10, United States Code, with respect to a contract of such agency if the head of the agency determines that the waiver is necessary due to the national emergency for the Coronavirus Disease 2019 (COVID–19).
"(b) In this section, the term 'head of an agency' has the meaning given that term in section 2302(2) [probably means section 2302(1)] of title 10, United States Code."
Pub. L. 111–84, div. A, title VIII, §812, Oct. 28, 2009, 123 Stat. 2406 , provided that:
"(a) Revision Required.-Not later than 180 days after the date of the enactment of this Act [Oct. 28, 2009], the Secretary of Defense shall revise the Defense Supplement to the Federal Acquisition Regulation to ensure that any limitations described in subsection (b) are applicable to all categories of undefinitized contractual actions (including undefinitized task orders and delivery orders).
"(b) Limitations.-The limitations referred to in subsection (a) are any limitations on the reimbursement of costs and the payment of profits or fees with respect to costs incurred before the definitization of an undefinitized contractual action of the Department of Defense, including-
Pub. L. 110–181, div. A, title VIII, §809, Jan. 28, 2008, 122 Stat. 216 , provided that:
"(a) Guidance and Instructions.-Not later than 180 days after the date of the enactment of this Act [Jan. 28, 2008], the Secretary of Defense shall issue guidance, with detailed implementation instructions, for the Department of Defense to ensure the implementation and enforcement of requirements applicable to undefinitized contractual actions.
"(b) Elements.-The guidance and instructions issued pursuant to subsection (a) shall address, at a minimum-
"(1) Report on guidance and instructions.-Not later than 210 days after the date of the enactment of this Act [Jan. 28, 2008], the Secretary of Defense shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report setting forth the guidance and instructions issued pursuant to subsection (a).
"(2) GAO report.-Not later than two years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the extent to which the guidance and instructions issued pursuant to subsection (a) have resulted in improvements to-
Pub. L. 99–500, §101(c) [title X, §908(a)–(c), (e)], Oct. 18, 1986, 100 Stat. 1783–82 , 1783-139, 1783-140, 1783-142, Pub. L. 99–591, §101(c) [title X, §908(a)–(c), (e)], Oct. 18, 1986, 100 Stat. 3341–82 , 3341-139, 3341-140, 3341-142, and Pub. L. 99–661, div. A, title IX, formerly title IV, §908(a)–(c), (e), Nov. 14, 1986, 100 Stat. 3918 , 3919, 3921, renumbered title IX and amended by Pub. L. 100–26, §§3(5), 5(2), Apr. 21, 1987, 101 Stat. 273 , 274; Pub. L. 104–106, div. D, title XLIII, §4322(b)(2), Feb. 10, 1996, 110 Stat. 677 , which related to limitations on funding for undefinitized contractual actions, Inspector General audits and oversight, and waiver authority, were repealed by Pub. L. 115–232, div. A, title VIII, §812(b)(21), Aug. 13, 2018, 132 Stat. 1848 .