US (United States) Code. Title 10. Subtitle A. Part IV. Chapter 141: Miscellaneous procurement provisions

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-CITE-

10 USC CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

.

-HEAD-

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-MISC1-

Sec.

2381. Contracts: regulations for bids.

(2382, 2383. Repealed.)

2384. Supplies: identification of supplier and sources.

2384a. Supplies: economic order quantities.

2385. Arms and ammunition: immunity from taxation.

2386. Copyrights, patents, designs, etc.; acquisition.

2387. Procurement of table and kitchen equipment for officers'

quarters: limitation on.

2388. Liquid fuels and natural gas: contracts for storage,

handling, or distribution.

2389. Ensuring safety regarding insensitive munitions.

2390. Prohibition on the sale of certain defense articles from the

stocks of the Department of Defense.

2391. Military base reuse studies and community planning

assistance.

2392. Prohibition on use of funds to relieve economic dislocations.

2393. Prohibition against doing business with certain offerors or

contractors.

2394. Contracts for energy or fuel for military installations.

2394a. Procurement of energy systems using renewable forms of

energy.

2395. Availability of appropriations for procurement of technical

military equipment and supplies.

2396. Advances for payments for compliance with foreign laws, rent

in foreign countries, tuition, public utility services, and pay

and supplies of armed forces of friendly foreign countries.

(2397 to 2397c. Repealed.)

2398. Procurement of gasohol as motor vehicle fuel.

2399. Operational test and evaluation of defense acquisition

programs.

2400. Low-rate initial production of new systems.

2401. Requirement for authorization by law of certain contracts

relating to vessels and aircraft.

2401a. Lease of vehicles, equipment, vessels, and aircraft.

2402. Prohibition of contractors limiting subcontractor sales

directly to the United States.

(2403. Repealed.)

2404. Acquisition of certain fuel sources: authority to waive

contract procedures; acquisition by exchange; sales authority.

(2405 to 2407. Repealed or Renumbered.)

2408. Prohibition on persons convicted of defense-contract related

felonies and related criminal penalty on defense contractors.

2409. Contractor employees: protection from reprisal for disclosure

of certain information.

(2409a. Repealed.)

2410. Requests for equitable adjustment or other relief:

certification.

2410a. Severable service contracts for periods crossing fiscal

years.

2410b. Contractor inventory accounting systems: standards.

2410c. Preference for energy efficient electric equipment.

2410d. Subcontracting plans: credit for certain purchases.

(2410e. Repealed.)

2410f. Debarment of persons convicted of fraudulent use of ''Made

in America'' labels.

2410g. Advance notification of contract performance outside the

United States.

(2410h. Renumbered.)

2410i. Prohibition on contracting with entities that comply with

the secondary Arab boycott of Israel.

2410j. Displaced contractor employees: assistance to obtain

certification and employment as teachers or employment as

teachers' aides.

2410k. Defense contractors: listing of suitable employment openings

with local employment service office.

2410l. Contracts for advisory and assistance services: cost

comparison studies.

2410m. Retention of amounts collected from contractor during the

pendency of contract dispute.

2410n. Products of Federal Prison Industries: procedural

requirements.

2410o. Multiyear procurement authority: purchase of dinitrogen

tetroxide, hydrazine, and hydrazine-related products.

AMENDMENTS

2002 - Pub. L. 107-314, div. A, title VIII, Sec. 826(b), title

X, Sec. 1062(a)(10)(B), Dec. 2, 2002, 116 Stat. 2617, 2650,

transferred item 2410h ''Acquisition fellowship program'' to

subchapter IV of chapter 87 as item 1747 and added item 2410o.

2001 - Pub. L. 107-107, div. A, title VIII, Sec. 811(a)(2),

834(a)(2), Dec. 28, 2001, 115 Stat. 1181, 1191, added items 2389

and 2410n.

1999 - Pub. L. 106-65, div. A, title VIII, Sec. 803(b)(2), Oct.

5, 1999, 113 Stat. 704, substituted ''Acquisition of certain fuel

sources'' for ''Acquisition of petroleum and natural gas'' in item

2404.

1997 - Pub. L. 105-85, div. A, title VIII, Sec. 801(b),

810(a)(2), 831(b), 847(b)(1), title X, Sec. 1014(b)(2), Nov. 18,

1997, 111 Stat. 1831, 1839, 1842, 1845, 1875, inserted ''public

utility services,'' after ''tuition,'' in item 2396, struck out

items 2403 ''Major weapon systems: contractor guarantees'' and 2405

''Limitation on adjustment of shipbuilding contracts'', substituted

''Severable service contracts for periods crossing fiscal years''

for ''Appropriated funds: availability for certain contracts for 12

months'' in item 2410a, and added item 2410m.

1996 - Pub. L. 104-106, div. A, title VIII, Sec. 803(b),

807(a)(2), div. D, title XLIII, Sec. 4304(c)(1), Feb. 10, 1996,

110 Stat. 390, 392, 664, struck out items 2383 ''Procurement of

critical aircraft and ship spare parts: quality control'', 2397

''Employees or former employees of defense contractors: reports'',

2397a ''Requirements relating to private employment contacts

between certain Department of Defense procurement officials and

defense contractors'', 2397b ''Certain former Department of Defense

procurement officials: limitations on employment by contractors'',

and 2397c ''Defense contractors: requirements concerning former

Department of Defense officials'' and substituted ''Lease of

vehicles, equipment, vessels, and aircraft'' for ''Lease of

vessels, aircraft, and vehicles'' in item 2401a.

1994 - Pub. L. 103-355, title II, Sec. 2102(b), 2201(b)(2),

2301(c), title III, Sec. 3065(a)(2), title VI, Sec. 6005(b)(2),

Oct. 13, 1994, 108 Stat. 3309, 3318, 3321, 3337, 3365, added item

2401a, struck out items 2382 ''Contract profit controls during

emergency periods'', 2406 ''Availability of cost and pricing

records'', 2409a ''Communicating with Government officials: defense

contractor requirement to prohibit retaliatory personnel actions'',

and 2410e ''Contract claims: certification regulations'', and

substituted in item 2410 ''Requests for equitable adjustment or

other relief: certification'' for ''Contract claims:

certification''.

Pub. L. 103-337, div. A, title III, Sec. 363(a)(2), Oct. 5,

1994, 108 Stat. 2734, added item 2410l.

1993 - Pub. L. 103-160, div. A, title VIII, Sec. 828(a)(3),

(c)(3), (4), Nov. 30, 1993, 107 Stat. 1713, 1714, substituted

''Liquid fuels and natural gas: contracts for storage, handling, or

distribution'' for ''Liquid fuels: contracts for storage, handling,

and distribution'' in item 2388, struck out item 2389 ''Contracts

for the procurement of milk: price adjustments; purchases from the

Commodity Credit Corporation'', and inserted ''and natural gas''

and ''; acquisition by exchange; sales authority'' in item 2404.

Pub. L. 103-35, title II, Sec. 202(a)(18)(B), May 31, 1993, 107

Stat. 102, made technical amendment to directory language of Pub.

L. 102-484, Sec. 4470(a)(2). See 1992 Amendment note below.

Pub. L. 103-35, title II, Sec. 201(b)(1)(B), May 31, 1993, 107

Stat. 97, renumbered item 2410c relating to displaced contractor

employees as item 2410j and item 2410d relating to defense

contractors as item 2410k.

1992 - Pub. L. 102-484, div. D, title XLIV, Sec. 4470(a)(2),

Oct. 23, 1992, 106 Stat. 2753, as amended by Pub. L. 103-35, title

II, Sec. 202(a)(18)(B), May 31, 1993, 107 Stat. 102, added item

2410d relating to defense contractors.

Pub. L. 102-484, div. D, title XLIV, Sec. 4443(b), Oct. 23,

1992, 106 Stat. 2735, 2753, added item 2410c relating to displaced

contractor employees.

Pub. L. 102-484, div. A, title III, Sec. 384(a)(1)(B), title

VIII, Sec. 808(b)(2), 813(a)(2), 834(a)(2), 840(a)(2), 841(b),

title XIII, Sec. 1332(b), Oct. 23, 1992, 106 Stat. 2393, 2450,

2453, 2461, 2467, 2468, 2555, added items 2410c to 2410i.

1990 - Pub. L. 101-510, div. A, title VIII, Sec. 837(a)(2),

title XIV, Sec. 1484(i)(8), Nov. 5, 1990, 104 Stat. 1619, 1718,

struck out item 2407 ''Acquisition of defense equipment under

cooperative projects'' and added item 2409a.

1989 - Pub. L. 101-189, div. A, title VIII, Sec. 802(a)(2),

803(b), title IX, Sec. 933(e), title XVI, Sec. 1622(b)(2), Nov. 29,

1989, 103 Stat. 1486, 1488, 1538, 1604, added items 2390, 2399, and

2400 and struck out item 2401a ''Procurement of communications

support and related supplies and services''.

1988 - Pub. L. 100-456, div. A, title VIII, Sec. 805(a)(2),

834(a)(2), Sept. 29, 1988, 102 Stat. 2010, 2025, added items 2383

and 2410b.

Pub. L. 100-370, Sec. 1(h)(3), 3(b)(2), July 19, 1988, 102 Stat.

848, 855, in item 2389 substituted ''milk: price adjustments;

purchases from the Commodity Credit Corporation'' for ''milk; price

adjustment'', struck out items 2399 ''Limitation on availability of

appropriations to reimburse a contractor for cost of commercial

insurance'', and 2400 ''Miscellaneous procurement limitations'',

and added items 2410 and 2410a.

1987 - Pub. L. 100-180, div. A, title I, Sec. 124(b)(2), Dec. 4,

1987, 101 Stat. 1043, substituted ''Miscellaneous procurement

limitations'' for ''Limitation on procurement of buses'' in item

2400.

1986 - Pub. L. 99-661, div. A, title XI, Sec. 1103(b)(2)(B),

Nov. 14, 1986, 100 Stat. 3963, struck out ''North Atlantic Treaty

Organization'' before ''cooperative projects'' in item 2407.

Pub. L. 99-500, Sec. 101(c) (title X, Sec. 931(a)(2), 941(a)(2),

942(a)(2), 943(a)(2)), Oct. 18, 1986, 100 Stat. 1783-82, 1783-160,

1783-162, 1783-164, and Pub. L. 99-591, Sec. 101(c) (title X, Sec.

931(a)(2), 941(a)(2), 942(a)(2), 943(a)(2)), Oct. 30, 1986, 100

Stat. 3341-82, 3341-160, 3341-162, 3341-164; Pub. L. 99-661, div.

A, title IX, formerly title IV, Sec. 931(a)(2), 941(a)(2),

942(a)(2), 943(a)(2), Nov. 14, 1986, 100 Stat. 3939, 3941-3943,

3963, renumbered title IX, Pub. L. 100-26, Sec. 3(5), Apr. 21,

1987, 101 Stat. 273, amended analysis identically, substituting

''Availability of cost and pricing records'' for ''Cost and price

management'' in item 2406 and adding items 2397b, 2397c, 2408, and

2409.

1985 - Pub. L. 99-145, title IX, Sec. 917(b), 923(a)(2), title

XI, Sec. 1102(b)(2), Nov. 8, 1985, 99 Stat. 690, 697, 712, added

items 2397a, 2406, and 2407.

1984 - Pub. L. 98-525, title X, Sec. 1005(b), title XII, Sec.

1235(1), (2), Oct. 19, 1984, 98 Stat. 2579, 2604, substituted in

item 2384 ''identification of supplier and sources'' for ''marking

with name of contractor'' and added items 2401a, 2384a, and 2402 to

2405.

1983 - Pub. L. 98-94, title XII, Sec. 1202(a)(2), 1259(b), Sept.

24, 1983, 97 Stat. 681, 703, struck out item 2390 ''Suggestions for

improving procurement policies'', and added item 2401.

1982 - Pub. L. 97-321, title VIII, Sec. 801(a)(2), Oct. 15, 1982,

96 Stat. 1570, added item 2394a.

Pub. L. 97-295, Sec. 1(29)(B), Oct. 12, 1982, 96 Stat. 1294,

struck out item 2394 ''Availability of appropriations for

procurement of technical military equipment and supplies and the

construction of military public works'', added item 2395

''Availability of appropriations for procurement of technical

military equipment and supplies'', redesignated former item 2395 as

2396, and added items 2397, 2398, 2399, and 2400.

Pub. L. 97-258, Sec. 2(b)(4)(A), Sept. 13, 1982, 96 Stat. 1052,

added items 2394 and 2395.

Pub. L. 97-214, Sec. 6(a)(2), July 12, 1982, 96 Stat. 172, added

item 2394.

1981 - Pub. L. 97-86, title IX, Sec. 911(a)(2), 912(a)(2),

913(a)(2), 914(b), Dec. 1, 1981, 95 Stat. 1122, 1123, 1125,

substituted ''Contract profit controls during emergency periods''

for ''Aircraft: contract requirements'' in item 2382 and added

items 2391, 2392, and 2393.

1980 - Pub. L. 96-513, title V, Sec. 511(79), Dec. 12, 1980, 94

Stat. 2927, struck out item 2383 ''Emergency purchases: war

material abroad''.

1977 - Pub. L. 95-79, title VIII, Sec. 815(b), July 30, 1977, 91

Stat. 338, added item 2390.

1966 - Pub. L. 89-696, Sec. 1(2), Oct. 19, 1966, 80 Stat. 1057,

added item 2389.

1958 - Pub. L. 85-861, Sec. 1(47), Sept. 2, 1958, 72 Stat. 1458,

added items 2387 and 2388.

-CITE-

10 USC Sec. 2381 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2381. Contracts: regulations for bids

-STATUTE-

(a) The Secretary of Defense may -

(1) prescribe regulations for the preparation, submission, and

opening of bids for contracts; and

(2) require that a bid be accompanied by a written guaranty,

signed by one or more responsible persons, undertaking that the

bidder, if his bid is accepted, will, within the time prescribed

by the Secretary or other officer authorized to make the

contract, make a contract and furnish a bond with good and

sufficient sureties for the performance of the contract.

(b) If a bidder, after being notified of the acceptance of his

bid, fails within the time prescribed under subsection (a)(2) to

enter into a contract and furnish the prescribed bond, the

Secretary concerned or other authorized officer shall -

(1) contract with another person; and

(2) charge against the defaulting bidder and his guarantors the

difference between the amount specified by the bidder in his bid

and the amount for which a contract is made with the other

person, this difference being immediately recoverable by the

United States for the use of the military department concerned in

an action against the bidder and his guarantors, jointly or

severally.

(c) Proceedings under this section are subject to regulations

under section 121 of title 40, unless exempted therefrom under

section 501(a)(2) of title 40.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 136; Pub. L. 98-525, title XIV,

Sec. 1405(35), Oct. 19, 1984, 98 Stat. 2624; Pub. L. 103-355, title

I, Sec. 1507, Oct. 13, 1994, 108 Stat. 3298; Pub. L. 107-217, Sec.

3(b)(6), Aug. 21, 2002, 116 Stat. 1295.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2381(a) 2381(b) 5:218 (1st sentence, Apr. 10, 1878, ch.

less 1st 16 words; 58, 20 Stat. 36;

and 2d sentence). Mar. 3, 1883, ch.

5:218 (less 1st and 120, 22 Stat. 487;

2d sentences). Oct. 31, 1951, ch.

654, Sec. 2(4), 65

Stat. 706.

2381(c) 5:218 (1st 16 words Feb. 19, 1948, ch.

of 1st sentence) 65, Sec. 12 (1st

(applicability of sentence), 62 Stat.

5:218 extended to 26.

Navy by 5:412b and

41:161 (1st

sentence)).

-------------------------------

In subsection (a)(1), the word ''may'' is substituted for the

words ''is authorized to''. The words ''rules and * * * to be

observed'' are omitted as surplusage.

In subsection (a)(2), the word ''undertaking'' is substituted for

the words ''to the effect that he or they undertake''. The words

''make a contract'' are inserted for clarity. The words ''in the

premises'' are omitted as surplusage. The words ''for the

performance of the contract'' are substituted for the words ''to

furnish the supplies proposed or to perform the service required''.

In subsection (b), the word ''duly'' is omitted as surplusage.

The words ''with good and sufficient security for the proper

fulfillment of its terms'' are omitted as covered by subsection

(a)(2). The words ''the prescribed'' are inserted before the word

''bond''.

Subsection (b)(1) is substituted for the words ''proceed to

contract with some other person to furnish the supplies or perform

the services required''.

In subsection (b)(2) the word ''charge'' is substituted for the

words ''forthwith cause * * * to be charged''. The words ''a

contract is made with the other person'' are substituted for the

words ''he may have contracted with another party to furnish the

supplies or perform the service for the whole period of the

proposal''. The words ''guarantor or'' are omitted as surplusage.

The words ''this difference being'' are substituted for the words

''and the sum may be''. The words ''of debt'' are omitted, since

that action no longer exists. The words ''the bidder and his

guarantors, jointly or severally'' are substituted for the words

''either or all of such persons''.

In subsection (c), the words ''Proceedings under this section

are'' are inserted for clarity. The words ''unless exempted

therefrom under section 481(a) of that title'' are inserted to

preserve the possibility of exemption of proceedings under the

revised section from the provisions of the Federal Property and

Administrative Services Act of 1949, as amended.

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-217 substituted ''section 121 of

title 40'' for ''section 205 of the Federal Property and

Administrative Services Act of 1949 (40 U.S.C. 486)'' and ''section

501(a)(2) of title 40'' for ''section 201(a) of that Act (40 U.S.C.

481(a))''.

1994 - Subsec. (a). Pub. L. 103-355 substituted ''The Secretary

of Defense may -

''(1) prescribe regulations for the preparation, submission,

and opening of bids for contracts; and''

for ''The Secretary of a military department may -

''(1) prescribe regulations for the preparation, submission,

and opening of bids for contracts with that department; and''.

1984 - Subsec. (c). Pub. L. 98-525 substituted ''section 205 of

the Federal Property and Administrative Services Act of 1949 (40

U.S.C. 486)'' for ''section 486 of title 40'' and ''section 201(a)

of that Act (40 U.S.C. 481(a))'' for ''section 481(a) of this

title''.

-CITE-

10 USC Sec. 2382 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2382. Repealed. Pub. L. 103-355, title II, Sec. 2102(a), Oct.

13, 1994, 108 Stat. 3309)

-MISC1-

Section, acts Aug. 10, 1956, ch. 1041, 70A Stat. 136; Dec. 1,

1981, Pub. L. 97-86, title IX, Sec. 911(a)(1), 95 Stat. 1120; Nov.

5, 1990, Pub. L. 101-510, div. A, title XIV, Sec. 1484(b)(3),

(f)(2), (g)(2), (h)(3), 104 Stat. 1716, 1717; Oct. 29, 1992, Pub.

L. 102-572, title IX, Sec. 902(b)(1), 106 Stat. 4516, authorized

the President, upon declaration of war by Congress or declaration

of national emergency by the President or by Congress, to prescribe

regulations to control excessive profits on defense contracts

during period of such war or national emergency.

EFFECTIVE DATE OF REPEAL

For effective date and applicability of repeal, see section 10001

of Pub. L. 103-355, set out as an Effective Date of 1994 Amendment

note under section 251 of Title 41, Public Contracts.

-CITE-

10 USC Sec. 2383 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2383. Repealed. Pub. L. 104-106, div. A, title VIII, Sec.

803(a), Feb. 10, 1996, 110 Stat. 390)

-MISC1-

Section, added Pub. L. 100-456, div. A, title VIII, Sec.

805(a)(1), Sept. 29, 1988, 102 Stat. 2010; amended Pub. L. 102-190,

div. A, title X, Sec. 1061(a)(13), Dec. 5, 1991, 105 Stat. 1473;

Pub. L. 103-355, title II, Sec. 2401, Oct. 13, 1994, 108 Stat.

3324, related to quality control in procurement of critical

aircraft and ship spare or repair parts.

-CITE-

10 USC Sec. 2384 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2384. Supplies: identification of supplier and sources

-STATUTE-

(a) The Secretary of Defense shall require that the contractor

under a contract with the Department of Defense for the furnishing

of supplies to the United States shall mark or otherwise identify

supplies furnished under the contract with the identity of the

contractor, the national stock number for the supplies furnished

(if there is such a number), and the contractor's identification

number for the supplies.

(b)(1) The Secretary of Defense shall prescribe regulations

requiring that, whenever practicable, each contract requiring the

delivery of supplies (other than a contract described in paragraph

(2)) shall require that the contractor identify -

(A) the actual manufacturer or producer of the item or of all

sources of supply of the contractor for that item;

(B) the national stock number of the item (if there is such a

number) and the identification number of the actual manufacturer

or producer of the item or of each source of supply of the

contractor for the item; and

(C) the source of any technical data delivered under the

contract.

(2) The regulations prescribed pursuant to paragraph (1) do not

apply to a contract that requires the delivery of supplies that are

commercial items (as defined in section 4(12) of the Office of

Federal Procurement Policy Act (41 U.S.C. 403(12))).

(3) The regulations prescribed pursuant to paragraph (1) do not

apply to a contract for an amount not greater than the simplified

acquisition threshold (as defined in section 4(11) of the Office of

Federal Procurement Policy Act (41 U.S.C. 403(11))).

(c) Identification of supplies and technical data under this

section shall be made in the manner and with respect to the

supplies prescribed by the Secretary of Defense.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 137; Pub. L. 98-525, title XII,

Sec. 1231(a), Oct. 19, 1984, 98 Stat. 2599; Pub. L. 99-500, Sec.

101(c) (title X, Sec. 928(a)), Oct. 18, 1986, 100 Stat. 1783-82,

1783-156, and Pub. L. 99-591, Sec. 101(c) (title X, Sec. 928(a)),

Oct. 30, 1986, 100 Stat. 3341-82, 3341-156; Pub. L. 99-661, div.

A, title IX, formerly title IV, Sec. 928(a), Nov. 14, 1986, 100

Stat. 3936, renumbered title IX, Pub. L. 100-26, Sec. 3(5), Apr.

21, 1987, 101 Stat. 273; Pub. L. 103-355, title IV, Sec. 4102(d),

title VIII, Sec. 8105(b), Oct. 13, 1994, 108 Stat. 3340, 3392; Pub.

L. 104-106, div. D, title XLIII, Sec. 4321(b)(12), Feb. 10, 1996,

110 Stat. 672.)

-MISC1-

Historical and Revision Notes

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Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2384 10:1207. 34:583. R.S. 3731.

-------------------------------

The words ''Each contractor'' are substituted for the words

''Every person''. The word ''his'' is substituted for the words

''the name of the contractor furnishing such supplies''. The words

''of any kind'' and ''and distinguish (distinguished)'' are omitted

as surplusage. The word ''may'' is substituted for the word

''shall''.

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

-MISC3-

AMENDMENTS

1996 - Subsec. (b)(2). Pub. L. 104-106, Sec. 4321(b)(12)(A),

substituted ''items (as'' for ''items, as'' and inserted a closing

parenthesis after ''403(12))''.

Subsec. (b)(3). Pub. L. 104-106, Sec. 4321(b)(12)(B), inserted a

closing parenthesis after ''403(11))''.

1994 - Subsec. (b)(2). Pub. L. 103-355, Sec. 8105(b), amended

par. (2) generally. Prior to amendment, par. (2) read as follows:

''Paragraph (1) does not apply to a contract that requires the

delivery of supplies that are commercial items sold in substantial

quantities to the general public if the contract -

''(A) provides for the acquisition of such supplies by the

Department of Defense at established catalog or market prices; or

''(B) is awarded through the use of competitive procedures.''

Subsec. (b)(3). Pub. L. 103-355, Sec. 4102(d), added par. (3).

1986 - Subsec. (b). Pub. L. 99-500, Pub. L. 99-591, and Pub. L.

99-661, amended subsec. (b) identically, designating existing

provision as par. (1), redesignating former pars. (1) to (3) as

subpars. (A) to (C), respectively, and inserting in provision

preceding subpar. (A) ''(other than a contract described in

paragraph (2))'', and adding par. (2).

1984 - Pub. L. 98-525 amended section generally, substituting

''identification of supplier and sources'' for ''marking with name

of contractor'' in section catchline, and, in text, substituting

provisions designated subsec. (a) and relating to the marking of

supplies, providing the national stock number for the supplies

furnished, and the contractor's identification number for

requirement that each contractor furnishing supplies to a military

department mark the supplies with his name in the manner directed

by the Secretary of the Department and prohibition of receipt of

supplies unless so marked and adding subsecs. (b) and (c).

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by Pub. L.

104-106, see section 4401 of Pub. L. 104-106, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 101(c) (title X, Sec. 928(b)) of Pub. L. 99-500 and Pub.

L. 99-591, and section 928(b) of title IX, formerly title IV, of

Pub. L. 99-661, renumbered title IX, Pub. L. 100-26, Sec. 3(5),

Apr. 21, 1987, 101 Stat. 273, provided that: ''The amendments made

by subsection (a) (amending this section) shall apply with respect

to contracts entered into after the end of the 180-day period

beginning on the date of the enactment of this Act (Oct. 18,

1986).''

EFFECTIVE DATE OF 1984 AMENDMENT

Section 1231(b) of Pub. L. 98-525 provided that: ''The amendment

made by subsection (a) (amending this section) shall take effect at

the end of the one-year period beginning on the date of the

enactment of this Act (Oct. 19, 1984).''

-CITE-

10 USC Sec. 2384a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2384a. Supplies: economic order quantities

-STATUTE-

(a)(1) An agency referred to in section 2303(a) of this title

shall procure supplies in such quantity as (A) will result in the

total cost and unit cost most advantageous to the United States,

where practicable, and (B) does not exceed the quantity reasonably

expected to be required by the agency.

(2) The Secretary of Defense shall take paragraph (1) into

account in approving rates of obligation of appropriations under

section 2204 of this title.

(b) Each solicitation for a contract for supplies shall, if

practicable, include a provision inviting each offeror responding

to the solicitation to state an opinion on whether the quantity of

the supplies proposed to be procured is economically advantageous

to the United States and, if applicable, to recommend a quantity or

quantities which would be more economically advantageous to the

United States. Each such recommendation shall include a quotation

of the total price and the unit price for supplies procured in each

recommended quantity.

-SOURCE-

(Added Pub. L. 98-525, title XII, Sec. 1233(a), Oct. 19, 1984, 98

Stat. 2600.)

-MISC1-

EFFECTIVE DATE

Section 1233(b) of Pub. L. 98-525 provided that: ''The amendment

made by subsection (a) (enacting this section) shall take effect at

the end of the 180-day period beginning on the date of the

enactment of this Act (Oct. 19, 1984).''

-CITE-

10 USC Sec. 2385 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2385. Arms and ammunition: immunity from taxation

-STATUTE-

No tax on the sale or transfer of firearms, pistols, revolvers,

shells, or cartridges may be imposed on such articles when bought

with funds appropriated for a military department.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 137.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2385 5:171w. Jan. 6, 1951, ch.

1213, subch. VII,

Sec. 706, 64 Stat.

1236.

-------------------------------

The words ''No * * * may be'' are substituted for the words

''None * * * shall be subject to any''. The words ''by any Act''

are omitted as surplusage.

-CITE-

10 USC Sec. 2386 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2386. Copyrights, patents, designs, etc.; acquisition

-STATUTE-

Funds appropriated for a military department available for making

or procuring supplies may be used to acquire any of the following

if the acquisition relates to supplies or processes produced or

used by or for, or useful to, that department:

(1) Copyrights, patents, and applications for patents.

(2) Licenses under copyrights, patents, and applications for

patents.

(3) Design and process data, technical data, and computer

software.

(4) Releases for past infringement of patents or copyrights or

for unauthorized use of technical data or computer software.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 137; Pub. L. 86-726, Sec. 3,

Sept. 8, 1960, 74 Stat. 855; Pub. L. 103-355, title III, Sec. 3063,

Oct. 13, 1994, 108 Stat. 3337; Pub. L. 104-106, div. A, title

VIII, Sec. 813, Feb. 10, 1996, 110 Stat. 395.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2386 31:649b. Aug. 1, 1953, ch.

305, Sec. 609, 67

Stat. 350.

-------------------------------

The words ''equipment, and materials'' are omitted as covered by

the word ''supplies''. The word ''hereafter'' is omitted as

executed. The words ''may be used'' are substituted for the words

''shall * * * be available''. The words ''if the acquisition

relates to'' are substituted for 31:649b (1st 8 words of last

sentence). In clauses (1), (2), and (4), the word ''patents'' is

substituted for the words ''letters patent''.

AMENDMENTS

1996 - Par. (3). Pub. L. 104-106 amended par. (3) generally,

substituting ''Design and process data, technical data, and

computer software'' for ''Technical data and computer software''.

1994 - Pars. (3), (4). Pub. L. 103-355 added pars. (3) and (4)

and struck out former pars. (3) and (4) which read as follows:

''(3) Designs, processes, and manufacturing data.

''(4) Releases, before suit is brought, for past infringement of

patents or copyrights.''

1960 - Pub. L. 86-726 inserted ''or copyrights'' after

''patents'' in cl. (4).

-CITE-

10 USC Sec. 2387 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2387. Procurement of table and kitchen equipment for officers'

quarters: limitation on

-STATUTE-

(a) Except under regulations approved by the Secretary of Defense

and providing for uniform practices among the armed forces under

his jurisdiction, no part of any appropriation of the Department of

Defense may be used to supply or replace table linen, dishes,

glassware, silver, and kitchen utensils for use in the residences

on shore, or quarters on shore, of officers of those armed forces.

(b) This section does not apply to -

(1) field messes;

(2) messes temporarily set up on shore for bachelor officers

and officers attached to seagoing or district defense vessels;

(3) aviation units based on seagoing vessels;

(4) fleet air bases;

(5) submarine bases; and

(6) landing forces and expeditions.

-SOURCE-

(Added Pub. L. 85-861, Sec. 1(45), Sept. 2, 1958, 72 Stat. 1458.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2387(a) 5:174e (less words July 13, 1955, ch.

within 358, Sec. 614, 69

parentheses). Stat. 317.

2387(b) 5:174e (words within

parentheses).

-------------------------------

In subsection (a), the words ''may be used'' are substituted for

the words ''shall be available''. The words ''on account of'' are

omitted as surplusage. The words ''under his jurisdiction'' are

inserted for clarity, since the Secretary of Defense has no

jurisdiction over the Coast Guard when it is not operating as a

service in the Navy.

-CITE-

10 USC Sec. 2388 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2388. Liquid fuels and natural gas: contracts for storage,

handling, or distribution

-STATUTE-

(a) Authority To Contract. - The Secretary of Defense and the

Secretary of a military department may each contract for storage

facilities for, or the storage, handling, or distribution of,

liquid fuels or natural gas.

(b) Period of Contract. - The period of a contract entered into

under subsection (a) may not exceed 5 years. However, the contract

may provide options for the Secretary to renew the contract for

additional periods of not more than 5 years each, but not for more

than a total of 20 years.

(c) Option To Purchase Facility. - A contract under this section

may contain an option for the purchase by the United States of the

facility covered by the contract at the expiration or termination

of the contract, without regard to subsections (a) and (b) of

section 3324 of title 31, and before approval of title to the

underlying land by the Attorney General.

-SOURCE-

(Added Pub. L. 85-861, Sec. 1(46), Sept. 2, 1958, 72 Stat. 1457;

amended Pub. L. 97-214, Sec. 10(a)(3), July 12, 1982, 96 Stat. 175;

Pub. L. 97-258, Sec. 3(b)(6), Sept. 13, 1982, 96 Stat. 1063; Pub.

L. 97-295, Sec. 1(27), Oct. 12, 1982, 96 Stat. 1291; Pub. L.

98-525, title XIV, Sec. 1405(56)(A), Oct. 19, 1984, 98 Stat. 2626;

Pub. L. 101-510, div. A, title XIII, Sec. 1322(a)(6), Nov. 5,

1990, 104 Stat. 1671; Pub. L. 103-160, div. A, title VIII, Sec.

825, Nov. 30, 1993, 107 Stat. 1711; Pub. L. 103-355, title III,

Sec. 3064, Oct. 13, 1994, 108 Stat. 3337.)

-MISC1-

Historical and Revision Notes

1956 Act

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2388(a) 2388(b) 50:98i (1st Aug. 3, 1956, ch.

sentence). 50:98i 939, Sec. 416, 70

(2d sentence). Stat. 1018.

2388(c) 50:98i (less 1st and

2d sentences and

proviso of last

sentence).

2388(d) 50:98i (proviso of

last sentence).

-------------------------------

In subsection (b), the words ''section applies only'' are

substituted for the words ''authority is limited''. The word

''standards'' is substituted for the word ''criteria''.

In subsection (c), the words ''A contract under this section''

are substituted for the words ''Such contracts''. The last 33

words are substituted for 50:98i (28 words before proviso of last

sentence).

1982 ACT

In 10:2388(c), the title 31 citation is substituted on authority

of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the

first section of which enacted title 31.

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-355 substituted ''liquid fuels or

natural gas'' for ''liquid fuels and natural gas''.

1993 - Pub. L. 103-160, Sec. 825(b), substituted ''Liquid fuels

and natural gas: contracts for storage, handling, or distribution''

for ''Liquid fuels: contracts for storage, handling, and

distribution'' as section catchline.

Subsecs. (a), (b). Pub. L. 103-160, Sec. 825(a)(1), added

subsecs. (a) and (b) and struck out former subsecs. (a) and (b)

which read as follows:

''(a) The Secretary of a military department may contract for the

storage, handling, and distribution of liquid fuels for periods of

not more than five years, with options to renew for additional

periods of not more than five years each, but not for more than a

total of 20 years.

''(b) This section applies only to facilities that conform to

standards prescribed by the Secretary of Defense for protection,

including dispersal, and that are in a program approved by the

Secretary of Defense for the protection of petroleum facilities.''

Subsec. (c). Pub. L. 103-160, Sec. 825(a)(2), inserted heading.

1990 - Subsec. (d). Pub. L. 101-510 struck out subsec. (d) which

read as follows: ''The Secretary concerned shall report to the

Committees on Armed Services of the Senate and the House of

Representatives the terms of the contracts made under this section

and the names of the contractors. The reports shall be made at

such times and in such form as may be agreed upon by the Secretary

and those Committees.''

1984 - Subsec. (c). Pub. L. 98-525 substituted ''subsections (a)

and (b) of section 3324'' for ''section 3324(a) and (b)''.

1982 - Subsec. (c). Pub. L. 97-295, Sec. 1(27), substituted

''section 3324(a) and (b) of title 31'' for ''section 3648 of the

Revised Statutes (31 U.S.C. 529)'', clarifying the ambiguity

created by previous amendments by Pub. L. 97-214 and Pub. L.

97-258.

Pub. L. 97-258, Sec. 3(b)(6), directed the substitution of

''section 3324(a) and (b) of title 31'' for ''section 529 of title

31'', which could not be executed in view of prior substitution of

language by Pub. L. 97-214.

Pub. L. 97-214, Sec. 10(a)(3), substituted ''section 3648 of the

Revised Statutes (31 U.S.C. 529)'' for ''section 4774(d) or 9774(d)

of this title, section 529 of title 31, or section 259 or 267 of

title 40,''.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-214 effective Oct. 1, 1982, and

applicable to military construction projects, and to construction

and acquisition of military family housing authorized before, on,

or after such date, see section 12(a) of Pub. L. 97-214, set out as

an Effective Date note under section 2801 of this title.

PURCHASES OF GASOHOL AS FUEL FOR MOTOR VEHICLES

Pub. L. 96-107, title VIII, Sec. 815, Nov. 9, 1979, 93 Stat. 817,

which had authorized the Secretary of Defense to buy domestically

produced alcohol and gasohol for use as fuel in Department of

Defense motor vehicles, was repealed and reenacted as section 2398

of this title by Pub. L. 97-295, Sec. 1(29)(A), 6(b), Oct. 12,

1982, 96 Stat. 1293, 1315.

-CITE-

10 USC Sec. 2389 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2389. Ensuring safety regarding insensitive munitions

-STATUTE-

The Secretary of Defense shall ensure, to the extent practicable,

that insensitive munitions under development or procurement are

safe throughout development and fielding when subject to unplanned

stimuli.

-SOURCE-

(Added Pub. L. 107-107, div. A, title VIII, Sec. 834(a)(1), Dec.

28, 2001, 115 Stat. 1191.)

-MISC1-

PRIOR PROVISIONS

A prior section 2389, added Pub. L. 89-696, Sec. 1(1), Oct. 19,

1966, 80 Stat. 1056; amended Pub. L. 100-370, Sec. 1(h)(1), July

19, 1988, 102 Stat. 847, related to purchases from Commodity Credit

Corporation and price adjustments for contracts for procurement of

milk, prior to repeal by Pub. L. 103-160, div. A, title VIII, Sec.

821(a)(4), Nov. 30, 1993, 107 Stat. 1704.

REPORT REQUIREMENT

Pub. L. 107-107, div. A, title VIII, Sec. 834(b), Dec. 28, 2001,

115 Stat. 1191, provided that: ''At the same time that the budgets

for fiscal years 2003 through 2005 are submitted to Congress under

section 1105(a) of title 31, United States Code, the Secretary of

Defense shall submit to the Committees on Armed Services of the

Senate and the House of Representatives a report on insensitive

munitions. The reports shall include the following:

''(1) The number of waivers granted pursuant to Department of

Defense Regulation 5000.2-R (June 2001) during the preceding

fiscal year, together with a discussion of the justifications for

the waivers.

''(2) Identification of the funding proposed for insensitive

munitions in the budget with which the report is submitted,

together with an explanation of the proposed funding.''

-CITE-

10 USC Sec. 2390 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2390. Prohibition on the sale of certain defense articles from

the stocks of the Department of Defense

-STATUTE-

(a)(1) Except as provided in subsections (b) and (c), the sale

outside the Department of Defense of any defense article designated

or otherwise classified as Prepositioned Material Configured to

Unit Sets, as decrement stock, or as Prepositioned War Reserve

Stocks for United States Forces is prohibited.

(2) In this section, the term ''decrement stock'' means such

stock as is needed to bring the armed forces from a peacetime level

of readiness to a combat level of readiness.

(b) The President may authorize the sale outside the Department

of Defense of a defense article described in subsection (a) if -

(1) he determines that there is an international crisis

affecting the national security of the United States and the sale

of such article is in the best interests of the United States;

and

(2) he reports to the Congress not later than 60 days after the

transfer of such article a plan for the prompt replenishment of

the stocks of such article and the planned budget request to

begin implementation of that plan.

(c)(1) Nothing in this section shall preclude the sale of stocks

which have been designated for replacement, substitution, or

elimination or which have been designated for sale to provide funds

to procure higher priority stocks.

(2) Nothing in this section shall preclude the transfer or sale

of equipment to other members of the North Atlantic Treaty

Organization.

-SOURCE-

(Added Pub. L. 95-485, title VIII, Sec. 815(a), Oct. 20, 1978, 92

Stat. 1625, Sec. 975; amended Pub. L. 100-26, Sec. 7(k)(3), Apr.

21, 1987, 101 Stat. 284; renumbered Sec. 2390, Pub. L. 101-189,

div. A, title XVI, Sec. 1622(b)(1), Nov. 29, 1989, 103 Stat.

1604.)

-MISC1-

PRIOR PROVISIONS

A prior section 2390, added Pub. L. 95-79, title VIII, Sec.

815(a), July 30, 1977, 91 Stat. 337; amended Pub. L. 96-470, title

I, Sec. 104(a), Oct. 19, 1980, 94 Stat. 2238; Pub. L. 96-513, title

V, Sec. 511(80), Dec. 12, 1980, 94 Stat. 2927, directed Secretary

of Defense to request each commissioned officer, and each civilian

employee above grade GS-12, who was scheduled for retirement and

who was or had been at any time within one year prior to such

scheduled retirement, assigned to, or employed in, military

procurement to submit suggestions for methods to improve

procurement policies, prior to repeal by Pub. L. 98-94, title XII,

Sec. 1259(a), Sept. 24, 1983, 97 Stat. 703.

AMENDMENTS

1989 - Pub. L. 101-189 renumbered section 975 of this title as

this section.

1987 - Subsec. (a)(2). Pub. L. 100-26 inserted ''the term'' after

''In this section,''.

-CITE-

10 USC Sec. 2391 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2391. Military base reuse studies and community planning

assistance

-STATUTE-

(a) Reuse Studies. - Whenever the Secretary of Defense or the

Secretary of the military department concerned publicly announces

that a military installation is a candidate for closure or that a

final decision has been made to close a military installation and

the Secretary of Defense determines, because of the location,

facilities, or other particular characteristics of the

installation, that the installation may be suitable for some

specific Federal, State, or local use potentially beneficial to the

Nation, the Secretary of Defense may conduct such studies,

including the preparation of an environmental impact statement in

accordance with the National Environmental Policy Act of 1969 (42

U.S.C. 4321 et seq.), in connection with such installation and such

potential use as may be necessary to provide information sufficient

to make sound conclusions and recommendations regarding the

possible use of the installation.

(b) Adjustment and Diversification Assistance. - (1) The

Secretary of Defense may make grants, conclude cooperative

agreements, and supplement funds available under Federal programs

administered by agencies other than the Department of Defense in

order to assist State and local governments in planning community

adjustments and economic diversification required (A) by the

proposed or actual establishment, realignment, or closure of a

military installation, (B) by the cancellation or termination of a

Department of Defense contract or the failure to proceed with an

approved major weapon system program, (C) by a publicly announced

planned major reduction in Department of Defense spending that

would directly and adversely affect a community, (D) by the

encroachment of a civilian community on a military installation, or

(E) by the closure or the significantly reduced operations of a

defense facility as the result of the merger, acquisition, or

consolidation of the defense contractor operating the defense

facility, if the Secretary determines that an action described in

clause (A), (B), (C), or (E) is likely to have a direct and

significantly adverse consequence on the affected community or, in

the case of an action described in clause (D), if the Secretary

determines that the encroachment of the civilian community is

likely to impair the continued operational utility of the military

installation.

(2) In the case of the establishment or expansion of a military

installation, assistance may be made under paragraph (1) only if

(A) community impact assistance or special impact assistance is not

otherwise available, and (B) the establishment or expansion

involves the assignment to the installation of (i) more than 2,000

military, civilian, and contractor Department of Defense personnel,

or (ii) more military, civilian, and contractor Department of

Defense personnel than the number equal to 10 percent of the number

of persons employed in counties or independent municipalities

within fifteen miles of the installation, whichever is lesser.

(3) In the case of a publicly announced planned reduction in

Department of Defense spending, the closure or significantly

reduced operations of a defense facility, the cancellation or

termination of a Department of Defense contract, or the failure to

proceed with a previously approved major defense acquisition

program, assistance may be made under paragraph (1) only if the

reduction, cancellation, termination, or failure will have a direct

and significant adverse impact on a community and will result in

the loss of -

(A) 2,500 or more employee positions, in the case of a

Metropolitan Statistical Area or similar area (as defined by the

Director of the Office of Management and Budget);

(B) 1,000 or more employee positions, in the case of a labor

market area outside of a Metropolitan Statistical Area; or

(C) one percent of the total number of civilian jobs in that

area.

(4)(A) In the case of a State or local government eligible for

assistance under paragraph (1), the Secretary of Defense may also

make grants, conclude cooperative agreements, and supplement other

Federal funds in order to assist the State or local government to

carry out a community adjustment and economic diversification

program (including State industrial extension or modernization

efforts to facilitate the economic diversification of defense

contractors and subcontractors) in addition to planning such a

program.

(B) The Secretary shall establish criteria for the selection of

community adjustment and economic diversification programs to

receive assistance under subparagraph (A). Such criteria shall

include a requirement that the State or local government agree -

(i) to provide not less than 10 percent of the funding for the

program from non-Federal sources;

(ii) to provide business planning and market exploration

services under the program to defense contractors and

subcontractors that seek modernization or diversification

assistance; and

(iii) to provide training, counseling, and placement services

for members of the armed forces and dislocated defense workers.

(C) The Secretary shall carry out this paragraph in coordination

with the Secretary of Commerce.

(5)(A) The Secretary of Defense may also make grants, conclude

cooperative agreements, and supplement other Federal funds in order

to assist a State or local government in planning community

adjustments and economic diversification even though the State or

local government is not currently eligible for assistance under

paragraph (1) if the Secretary determines that a substantial

portion of the economic activity or population of the geographic

area to be subject to the advance planning is dependent on defense

expenditures.

(B) The Secretary of Defense may also make grants, conclude

cooperative agreements, and supplement other Federal funds in order

to assist a State in enhancing its capacities -

(i) to assist communities, businesses, and workers adversely

affected by an action described in paragraph (1);

(ii) to support local adjustment and diversification

initiatives; and

(iii) to stimulate cooperation between statewide and local

adjustment and diversification efforts.

(C) The Secretary of Defense may also make grants, conclude

cooperative agreements, and supplement other Federal funds in order

to assist a State or local government in enhancing the capabilities

of the government to support efforts of the Department of Defense

to privatize, contract for, or diversify the performance of

military family support services in cases in which the capability

of the Department to provide such services is adversely affected by

an action described in paragraph (1).

(6) Funds provided to State and local governments and regional

organizations under this section may be used as part or all of any

required non-Federal contribution to a Federal grant-in-aid program

for the purposes stated in paragraph (1).

(7) To the extent practicable, the Secretary of Defense shall

inform a State or local government applying for assistance under

this subsection of the approval or rejection by the Secretary of

the application for such assistance as follows:

(A) Before the end of the 7-day period beginning on the date on

which the Secretary receives the application, in the case of an

application for a planning grant.

(B) Before the end of the 30-day period beginning on such date,

in the case of an application for assistance to carry out a

community adjustments and economic diversifications program.

(8)(A) In attempting to complete consideration of applications

within the time period specified in paragraph (7), the Secretary of

Defense shall give priority to those applications requesting

assistance for a community described in subsection (f)(1).

(B) If an application under paragraph (7) is rejected by the

Secretary, the Secretary shall promptly inform the State or local

government of the reasons for the rejection of the application.

((c) Repealed. Pub. L. 107-314, div. A, title X, Sec.

1041(a)(13), Dec. 2, 2002, 116 Stat. 2645.)

(d) Definitions. - In this section:

(1) The term ''military installation'' means any camp, post,

station, base, yard, or other installation under the jurisdiction

of a military department that is located within any of the

several States, the District of Columbia, the Commonwealth of

Puerto Rico, or Guam.

(2) The term ''defense facility'' means any private facility

producing goods or services pursuant to a defense contract.

(3) The terms ''community adjustment'' and ''economic

diversification'' include the development of feasibility studies

and business plans for market diversification within a community

adversely affected by an action described in clause (A), (B),

(C), or (E) of subsection (b)(1) by adversely affected businesses

and labor organizations located in the community.

(e) Assistance Subject to Appropriations. - The authority of the

Secretary of Defense to make grants under this section in any

fiscal year is subject to the availability of appropriations for

that purpose.

-SOURCE-

(Added Pub. L. 97-86, title IX, Sec. 912(a)(1), Dec. 1, 1981, 95

Stat. 1122; amended Pub. L. 98-115, title VIII, Sec. 808, Oct. 11,

1983, 97 Stat. 789; Pub. L. 100-26, Sec. 7(k)(3), Apr. 21, 1987,

101 Stat. 284; Pub. L. 100-456, div. B, title XXVIII, Sec. 2805,

Sept. 29, 1988, 102 Stat. 2116; Pub. L. 101-510, div. D, title

XLI, Sec. 4102(b), Nov. 5, 1990, 104 Stat. 1851; Pub. L. 102-25,

title VII, Sec. 701(j)(3), Apr. 6, 1991, 105 Stat. 116; Pub. L.

102-484, div. A, title X, Sec. 1052(28), div. D, title XLIII,

Sec. 4301(a)-(c), Oct. 23, 1992, 106 Stat. 2500, 2696, 2697; Pub.

L. 103-35, title II, Sec. 202(a)(15), May 31, 1993, 107 Stat. 101;

Pub. L. 103-160, div. B, title XXIX, Sec. 2913, Nov. 30, 1993, 107

Stat. 1925; Pub. L. 103-337, div. A, title XI, Sec. 1122(a),

1123(a), (b), Oct. 5, 1994, 108 Stat. 2870, 2871; Pub. L. 104-106,

div. A, title XV, Sec. 1502(a)(1), Feb. 10, 1996, 110 Stat. 502;

Pub. L. 104-201, div. B, title XXVIII, Sec. 2814, Sept. 23, 1996,

110 Stat. 2790; Pub. L. 105-85, div. B, title XXVIII, Sec. 2822,

Nov. 18, 1997, 111 Stat. 1997; Pub. L. 106-65, div. A, title X,

Sec. 1067(1), Oct. 5, 1999, 113 Stat. 774; Pub. L. 107-314, div.

A, title X, Sec. 1041(a)(13), Dec. 2, 2002, 116 Stat. 2645.)

-REFTEXT-

REFERENCES IN TEXT

The National Environmental Policy Act of 1969, referred to in

subsec. (a), is Pub. L. 91-190, Jan. 1, 1970, 83 Stat. 852, as

amended, which is classified generally to chapter 55 (Sec. 4321 et

seq.) of Title 42, The Public Health and Welfare. For complete

classification of this Act to the Code, see Short Title note set

out under section 4321 of Title 42 and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-314 struck out heading and text

of subsec. (c). Text read as follows: ''The Secretary of Defense

shall submit a report not later than December 1 of each year to the

Committee on Armed Services of the Senate and the Committee on

Armed Services of the House of Representatives concerning the

operation of this section during the preceding fiscal year. Each

such report shall identify each State, unit of local government,

and regional organization that received a grant under this section

during such fiscal year and the total amount granted under this

section during such year to each such State, unit of local

government, and regional organization.''

1999 - Subsec. (c). Pub. L. 106-65 substituted ''and the

Committee on Armed Services'' for ''and the Committee on National

Security''.

1997 - Subsec. (b)(5)(C). Pub. L. 105-85 added subpar. (C).

1996 - Subsec. (b)(5). Pub. L. 104-201 designated existing

provisions as subpar. (A) and added subpar. (B).

Subsec. (c). Pub. L. 104-106 substituted ''Committee on Armed

Services of the Senate and the Committee on National Security of

the House of Representatives'' for ''Committees on Armed Services

of the Senate and House of Representatives''.

1994 - Subsec. (b)(5) to (7). Pub. L. 103-337, Sec. 1123(a),

added par. (5) and redesignated former pars. (5) and (6) as (6) and

(7), respectively. Former par. (7) redesignated (8).

Subsec. (b)(8). Pub. L. 103-337, Sec. 1123(a)(1), (b),

redesignated par. (7) as (8) and substituted ''paragraph (7)'' for

''paragraph (6)'' in subpars. (A) and (B).

Subsec. (d)(3). Pub. L. 103-337, Sec. 1122(a), added par. (3).

1993 - Subsec. (b)(1). Pub. L. 103-35 made technical amendment to

directory language of Pub. L. 102-484, Sec. 4301(b)(1)(C). See 1992

Amendment note below.

Subsec. (b)(6), (7). Pub. L. 103-160 added pars. (6) and (7).

1992 - Subsec. (a). Pub. L. 102-484, Sec. 4301(c)(1), inserted

heading.

Subsec. (b). Pub. L. 102-484, Sec. 4301(c)(2), inserted heading.

Subsec. (b)(1). Pub. L. 102-484, Sec. 4301(b)(1), as amended by

Pub. L. 103-35, substituted '', (D)'' for '', or (D)'', substituted

''(C), or (E)'' for ''or (C)'', and inserted cl. (E) before first

reference to ''if the Secretary''.

Pub. L. 102-484, Sec. 1052(28), substituted ''publicly

announced'' for ''publicly-announced''.

Subsec. (b)(3). Pub. L. 102-484, Sec. 4301(b)(2), inserted ''the

closure or significantly reduced operations of a defense

facility,'' after ''Defense spending,'' in introductory provisions.

Subsec. (b)(4), (5). Pub. L. 102-484, Sec. 4301(a)(1), (2), added

par. (4) and redesignated former par. (4) as (5).

Subsec. (c). Pub. L. 102-484, Sec. 4301(c)(3), inserted heading.

Subsec. (d). Pub. L. 102-484, Sec. 4301(b)(3), amended subsec.

(d) generally. Prior to amendment, subsec. (d) read as follows:

''In this section, the term 'military installation' means any camp,

post, station, base, yard, or other installation under the

jurisdiction of a military department that is located within any of

the several States, the District of Columbia, the Commonwealth of

Puerto Rico, or Guam.''

Subsec. (e). Pub. L. 102-484, Sec. 4301(c)(4), inserted heading.

1991 - Subsec. (b)(3). Pub. L. 102-25 substituted ''publicly

announced'' for ''publicly-announced'' and inserted a comma after

''only if the reduction''.

1990 - Subsec. (b)(3) to (6). Pub. L. 101-510 added par. (3),

redesignated par. (5) as (4), and struck out former pars. (3), (4),

and (6), which read as follows:

''(3) In the case of the cancellation or termination of a

Department of Defense contract or the failure to proceed with an

approved major weapon system program, assistance may be made under

paragraph (1) only if the cancellation, termination, or failure to

proceed involves the loss of 2,500 or more full-time Department of

Defense and contractor employee positions in the locality of the

affected community.

''(4) In the case of a publicly-announced planned major reduction

in Department of Defense spending that will directly and adversely

affect a community, assistance may be made under paragraph (1) only

if the publicly-announced planned major reduction will result in

the loss of 1,000 or more full-time Department of Defense and

contractor employee positions over a five-year period in the

locality of the affected community.

''(6) Not more than $2,000,000 in assistance may be provided

under this subsection in any fiscal year.''

1988 - Subsec. (b)(1). Pub. L. 100-456, Sec. 2805(a), amended

par. (1) generally. Prior to amendment, par. (1) read as follows:

''The Secretary of Defense may make grants, conclude cooperative

agreements, and supplement funds made available under Federal

programs administered by agencies other than the Department of

Defense in order to assist State and local governments, and

regional organizations composed of State and local governments, in

planning community adjustments required (A) by the proposed or

actual establishment, realignment, or closure of a military

installation, or (B) by the cancellation or termination of a

Department of Defense contract or the failure to proceed with an

approved major weapon system program, if the Secretary of Defense

determines that the action is likely to impose a significant impact

on the affected community.''

Subsec. (b)(4) to (6). Pub. L. 100-456, Sec. 2805(b), added par.

(4) and redesignated former pars. (4) and (5) as (5) and (6),

respectively.

1987 - Subsec. (d). Pub. L. 100-26 inserted ''the term'' after

''In this section,''.

1983 - Subsec. (b)(2). Pub. L. 98-115 substituted ''2,000'' for

''2,500''.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-35 applicable as if included in the

enactment of Pub. L. 102-484, see section 202(b) of Pub. L. 103-35,

set out as a note under section 155 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 2702 of title XXVII of div. B of Pub. L. 100-456

provided that: ''Except as otherwise specifically provided, this

division (amending this section and sections 2662, 2672, 2809, and

2828 of this title and enacting provisions set out as a note under

this section) shall take effect on October 1, 1988, or the date of

enactment of this Act (Sept. 29, 1988), whichever is later.''

EFFECTIVE DATE OF 1983 AMENDMENT

Section 808 of Pub. L. 98-115 provided that the amendment made by

that section is effective Oct. 1, 1983.

ADVANCE ADJUSTMENT PLANNING

Section 4301(d) of Pub. L. 102-484 authorized Secretary of

Defense, during fiscal year 1993, to make grants and other

assistance available under 10 U.S.C. 2391(b) to assist a State or

local government in planning community adjustments and economic

diversification even though the State or local government currently

failed to meet the criteria for assistance under such section if

the Secretary determined that a substantial portion of the economic

activity or population of the geographic area to be subjected to

the adjustment or diversification planning was dependent on

Department of Defense expenditures.

EFFECT OF 1992 AMENDMENTS ON EFFORTS OF ECONOMIC DEVELOPMENT

ADMINISTRATION

Section 4301(f) of Pub. L. 102-484 provided that: ''Nothing in

this section (amending this section and enacting provisions set out

as a note above) is intended to replace the efforts of the economic

development program administered by the Economic Development

Administration of the Department of Commerce.''

PILOT PROJECT TO IMPROVE ECONOMIC ADJUSTMENT PLANNING

Section 4302 of Pub. L. 102-484, as amended by Pub. L. 103-160,

div. A, title XIII, Sec. 1323(a), Nov. 30, 1993, 107 Stat. 1790,

authorized Secretary of Defense, during fiscal years 1993 and 1994,

to conduct a pilot project to examine methods to improve the

provision of economic adjustment and diversification assistance

under 10 U.S.C. 2391(b)(1) to State and local governments adversely

affected by the closure of military installations, the cancellation

or completion of defense contracts, or reductions in defense

spending.

DONATION OF REAL PROPERTY TO NONPROFIT ENTITIES PROVIDING SUPPORT

TO CHILDREN WITH LIFE-THREATENING DISEASES

Pub. L. 102-172, title VIII, Sec. 8149, Nov. 26, 1991, 105 Stat.

1214, provided that:

''(a) The Secretary of Defense, during the current fiscal year or

at any time thereafter, may make a donation to an entity described

in subsection (b) of a parcel of real property (including

structures on such property) under the jurisdiction of the

Secretary that is not currently required for the needs of the

Department and that the Secretary determines is needed and

appropriate for the activities of that entity.

''(b) A donation under subsection (a) may be made to a nonprofit

entity which provides medical, educational, and emotional support

in a recreational setting to children with life-threatening

diseases and their families.''

DEFENSE ECONOMIC ADJUSTMENT, DIVERSIFICATION, CONVERSION, AND

STABILIZATION

Pub. L. 101-510, div. D, Nov. 5, 1990, 104 Stat. 1848, as

amended by Pub. L. 102-190, div. A, title X, Sec. 1062(c), Dec. 5,

1991, 105 Stat. 1475; Pub. L. 102-484, div. D, title XLII, Sec.

4212(b), Oct. 23, 1992, 106 Stat. 2664; Pub. L. 104-201, div. A,

title VIII, Sec. 825, Sept. 23, 1996, 110 Stat. 2611; Pub. L.

105-277, div. A, Sec. 101(f) (title VIII, Sec. 405(d)(6)), Oct.

21, 1998, 112 Stat. 2681-337, 2681-419, provided that:

''SEC. 4001. SHORT TITLE

''This division may be cited as the 'Defense Economic Adjustment,

Diversification, Conversion, and Stabilization Act of 1990'.

''SEC. 4002. FINDINGS AND POLICY

''(a) Findings. - Congress makes the following findings:

''(1) There are likely to be significant reductions in the

programs, projects, and activities of the Department of Defense

during the first several fiscal years following fiscal year 1990.

''(2) Such reductions will adversely affect the economies of

many communities in the United States and small businesses and

civilian workers throughout the United States.

''(b) Policy. - In view of the findings expressed in subsection

(a), it is the policy of the United States that -

''(1) assistance be provided under existing planning assistance

programs and economic adjustment assistance programs of the

Federal Government to substantially and seriously affected

communities, businesses, and workers to the extent necessary to

facilitate an orderly transition for such communities, small

businesses, and workers from economic reliance on Department of

Defense spending to economic reliance on other sources of

business, employment, and revenue; and

''(2) funding for such programs be increased by amounts

necessary to meet the needs of such communities, small

businesses, and workers without reducing the funding that would

otherwise be available under those programs by reason of causes

unrelated to the reductions referred to in subsection (a)(1).

''SEC. 4003. DEFINITIONS

''For purposes of this division:

''(1) The term 'major defense contract or subcontract' means -

''(A) any defense contract in an amount not less than

$5,000,000 (without regard to the date on which the contract

was awarded); and

''(B) any subcontract which -

''(i) is entered into in connection with a contract

(without regard to the effective date of the subcontract);

and

''(ii) involves not less than $500,000.

''(2) The term 'Economic Adjustment Committee' or 'Committee'

means the Economic Adjustment Committee established in Executive

Order 12049 (10 U.S.C. 111 note).

''(3) The term 'defense facility' means any private or

government facility producing goods or services pursuant to a

defense contract.

''(4) The term 'military installation' means a base, camp,

post, station, yard, center, or homeport facility for any ship in

the United States, or any other facility under the jurisdiction

of a military department located in the United States.

''(5) The term 'substantially and seriously affected' means -

''(A) when such term is used in conjunction with the term

'community', a community -

''(i) which has within its administrative and political

jurisdiction one or more military installations or defense

facilities or which is economically affected by proximity to

a military installation or defense facility;

''(ii) in which the actual or threatened curtailment,

completion, elimination, or realignment of a defense contract

results in a workforce reduction of -

''(I) 2,500 or more employee positions, in the case of a

Metropolitan Statistical Area or similar area (as defined

by the Director of the Office of Management and Budget);

''(II) 1,000 or more employee positions, in the case of a labor

market area outside of a Metropolitan Statistical Area; or

''(III) one percent of the total number of civilian jobs in that

area; and

''(iii) which establishes, by evidence, that any workforce

reduction referred to in clause (ii) occurred as a direct

result of changes in Department of Defense requirements or

programs;

''(B) when such term is used in conjunction with the term

'businesses' any business which -

''(i) holds a major defense contract or subcontract (or

held such contract or subcontract before a reduction in the

defense budget);

''(ii) experiences a reduction, or the threat of a

reduction, of -

''(I) 25 percent or more in sales or production; or

''(II) 80 percent or more of the workforce of such business in any

division of such business or at any plant or other facility

of such business; and

''(iii) establishes, by evidence, that the reductions

referred to in clause (ii) occurred as a direct result of a

reduction in the defense budget; and

''(C) when such term is used in conjunction with the term

'group of workers', any group of 100 or more workers at a

defense facility who are (or who are threatened to be),

eligible to participate in the defense conversion adjustment

program under section 325 of the Job Training Partnership Act

(29 U.S.C. 1662d) (as added by section 4202 of this division),

as in effect on the day before the date of enactment of the

Workforce Investment Act of 1998 (Aug. 7, 1998).

''SEC. 4004. CONTINUATION OF ECONOMIC ADJUSTMENT COMMITTEE

''(a) Termination or Alteration Prohibited. - The Economic

Adjustment Committee established in Executive Order 12049 (10

U.S.C. 111 note) may not be terminated and the duties of the

Committee may not be significantly altered unless specifically

authorized by a law.

''(b) Chairman. - Until October 1, 1997, the Secretary of Defense

shall be the chairman of the Committee. After that, the

chairmanship shall rotate annually among the Secretary of Defense,

Secretary of Labor, and the Secretary of Commerce.

''(c) Executive Council. - Until October 1, 1997, the National

Defense Technology and Industrial Base Council shall function as an

Executive Council of the Committee. Under the direction of the

chairman of the Committee, the Executive Council shall develop

policies and procedures to ensure that communities, businesses, and

workers substantially and seriously affected by reductions in

defense expenditures are advised of the assistance available to

such communities, businesses, and workers under programs

administered by the departments and agency comprising the Council.

''(d) Duties of Committee. - The Economic Adjustment Committee

shall -

''(1) coordinate and facilitate cooperative efforts among

Federal agencies represented on the Committee to implement

defense economic adjustment programs;

''(2) serve as an information clearinghouse for and between

Federal, State, and local entities regarding their defense

economic adjustment efforts; and

''(3) submit to the President and Congress, not later than

December 1, 1991, and each December 1 thereafter, a report that -

''(A) describes Federal economic adjustment programs

available to communities, businesses, and groups of workers;

''(B) describes the implementation of defense economic

adjustment assistance during the preceding fiscal year; and

''(C) specifies the number of communities, businesses, and

workers affected by defense budget reductions during the

preceding fiscal year and such number assisted by Federal

economic adjustment programs during that fiscal year.

''TITLE XLI - ECONOMIC ADJUSTMENT PLANNING

''(SEC. 4101. Repealed. Pub. L. 104-201, div. A, title VIII, Sec.

825, Sept. 23, 1996, 110 Stat. 2611.)

''SEC. 4102. ECONOMIC ADJUSTMENT PLANNING ASSISTANCE THROUGH THE

DEPARTMENT OF DEFENSE

''(a) In General. - Any substantially and seriously affected

community shall be eligible for economic adjustment planning

assistance through the Office of Economic Adjustment in the

Department of Defense under subsection (b) of section 2391 of title

10, United States Code, subject to subsection (e) of such section.

Such assistance shall be provided in accordance with the standards,

procedures, and priorities established by the Committee under this

division.

''(b) (Amended section 2391(b) of this title.)

''SEC. 4103. COMMUNITY ECONOMIC ADJUSTMENT ASSISTANCE THROUGH THE

ECONOMIC DEVELOPMENT ADMINISTRATION

''(a) In General. - A community that has been determined by the

Economic Development Administration of the Department of Commerce

or the Office of Economic Adjustment of the Department of Defense,

in accordance with the standards and procedures established by the

Economic Adjustment Committee, to be a substantially and seriously

affected community shall be eligible for economic adjustment

assistance authorized under title IX of the Public Works and

Economic Development Act of 1965 (42 U.S.C. 3241 et seq.), subject

to the availability of appropriations for such purpose and subject

to meeting the eligibility requirements of such title.

''(b) Authorization of Appropriations. - There are authorized to

be appropriated to the Secretary of Defense for fiscal year 1991

$50,000,000 for purposes of carrying out subsection (a). Any amount

appropriated pursuant to this subsection shall remain available

until expended.

''TITLE XLII - ADJUSTMENT ASSISTANCE FOR EMPLOYEES

''(SEC. 4201. Repealed. Pub. L. 104-201, div. A, title VIII, Sec.

825, Sept. 23, 1996, 110 Stat. 2611.)

''SEC. 4202. DEFENSE CONVERSION ADJUSTMENT PROGRAM

''(Enacted section 1662d of Title 29, Labor.)

''SEC. 4203. AUTHORIZATION OF APPROPRIATIONS

''(a) Authorization. - There are authorized to be appropriated to

the Secretary of Defense $150,000,000 for fiscal year 1991 to carry

out section 4201 and the amendment made by section 4202. Amounts

appropriated pursuant to this subsection shall remain available

until expended.

''(b) Administrative Expenses. - Of amounts appropriated pursuant

to this section, not more than five percent may be retained by the

Secretary of Labor for the administration of the activities

authorized by the amendment made by section 4202.

''TITLE XLIII - EXPANSION OF BUSINESS CAPITAL ASSISTANCE PROGRAMS

''SEC. 4301. EXPANSION OF SMALL BUSINESS LOAN PROGRAM

''Not later than 180 days after the date of the enactment of this

Act (Nov. 5, 1990), the President, acting with the assistance of

the Committee and after consulting experts in government and the

private sector, shall transmit to the Congress recommendations

regarding ways that assistance provided pursuant to the business

loan program under section 7(a) of the Small Business Act of 1958

(15 U.S.C. 636(a)) may be used to respond to the consequences of

defense budget reductions.

''SEC. 4302. ECONOMIC PLANNING ASSISTANCE FOR EXCEPTIONAL PROJECTS

''(a) Assistance Authorized. - The Economic Development

Administration, in the case of assistance under title IX of the

Public Works and Economic Development Act of 1965 (42 U.S.C. 3241

et seq.), and the Office of Economic Adjustment, in the case of

planning assistance under section 2391(b) of title 10, United

States Code, may award planning assistance under those programs to

any substantially and seriously affected community, on behalf of a

business, group of businesses, or group of workers, if such

planning funds are determined by the agency concerned to be

necessary and appropriate as a catalyst for projects which the

agency determines, on a case-by-case basis, have exceptional

promise for achieving the objectives of this division.

''(b) Conditions on Assistance. - Awards under this section shall

be subject to the availability of appropriations for such purpose

and shall be made in accordance with any other applicable

provisions of law.

''SEC. 4303. EXPANSION OF EXPORT FINANCING FOR GOODS AND SERVICES

PRODUCED BY FIRMS AND EMPLOYEES FORMERLY ENGAGED IN DEFENSE

PRODUCTION

''(a) Export-Import Bank. -

''(1) Sense of congress on plan for expansion. - It is the

sense of Congress that the United States businesses undergoing

transition from defense production to nondefense production will

need assistance in seizing export markets overseas. Therefore,

in order to provide financial support for such businesses, as

well as meeting other normal demands on its resources, the annual

direct lending authority of the Export-Import Bank of the United

States should be increased by at least 150 percent from the

fiscal year 1990 level over the five-year period beginning

October 1, 1990.

''(2) Report of feasibility. - Before September 30, 1990, the

President, acting with the assistance of the Committee and after

consulting the Board of Directors of the Export-Import Bank of

the United States and other experts in government and the private

sector, shall transmit to the Congress a report assessing the

feasibility and desirability of a program for increasing the

amount of direct loan authority in the manner described in

paragraph (1) and the factors considered in making such

assessment.

''(3) Transition to nondefense production required to be

considered. - In determining whether to provide financial support

for an export transaction, the Export-Import Bank of the United

States shall take into account, to the extent feasible and in

accordance with applicable standards and procedures established

by the bank in consultation with the Committee, the fact that the

product or service is produced or provided by any business or

group of workers which -

''(A) was substantially and seriously affected by defense

budget reductions; and

''(B) is in transition from defense to nondefense production.

''(b) SBA Use of Authority for Export Financing Assistance. - In

determining whether to provide financial or other assistance under

the Small Business Act (15 U.S.C. 631 et seq.), title VIII of the

Omnibus Trade and Competitiveness Act of 1988 (Pub. L. 100-418, see

Short Title of 1988 Amendments note set out under section 631 of

Title 15, Commerce and Trade), or any program referred to in

section 4301 to any small business involved in, or attempting to

become involved in, the export of any product or service, the

Administrator of the Small Business Administration shall take into

account the fact that such product or service is produced or

provided by any business or group of workers which -

''(1) has been substantially and seriously affected by defense

budget reductions; and

''(2) is in transition from defense to nondefense production.

''(c) Coordination and Integration of Activities and Assistance

with Other Agencies. - In providing additional financial assistance

pursuant to any increase in loan authority under this division -

''(1) Federal agencies concerned with international trade shall

participate in the process of coordination conducted by the

Committee pursuant to section 4004(c)(1); and

''(2) such Federal agencies shall attempt, to the maximum

extent practicable, to coordinate and integrate the activities

and assistance of the agencies in support of exports, including

financial assistance in the form of direct loans, loan

guarantees, and insurance, general trade promotion, marketing

assistance, and marketing and commercial information, in a manner

consistent with the purposes of this division (and the amendments

made by this division to other provisions of law).

''(d) Reporting. - The annual reports made by the Export-Import

Bank of the United States and the Administrator of the Small

Business Administration and the annual economic stabilization and

adjustment report under section 4004(c)(3) of this division shall

include a description of the extent to which the bank and the

Administrator are -

''(1) providing financing described in subsections (a)(2) and

(b), respectively, to businesses or groups of workers which were

substantially and seriously affected by defense budget

reductions; and

''(2) coordinating and integrating export support and financing

activities with other Federal agencies.

''SEC. 4304. BENEFIT INFORMATION FOR BUSINESSES

''(a) Information Required To Be Provided. - The Secretary of

Commerce and the Administrator of the Small Business Administration

shall provide any business affected by defense budget reductions

with a complete description of available programs which provide any

business, whether on an industrywide or an individual basis, with

any planning assistance, financial, technical, or managerial

assistance, worker retraining assistance, or other assistance

authorized under this division.

''(b) Effective Notification System. - The Secretary of Commerce

and the Administrator of the Small Business Administration shall

take such action as may be appropriate to ensure, to the maximum

extent practicable, that each business affected by defense budget

reductions receives the information required to be provided under

subsection (a) on a timely basis.''

COMMISSION ON ALTERNATIVE UTILIZATION OF MILITARY FACILITIES

Section 2819 of Pub. L. 100-456, as amended by Pub. L. 101-510,

div. B, title XXIX, Sec. 2922(a), Nov. 5, 1990, 104 Stat. 1820,

established Commission on Alternative Utilization of Military

Facilities and required Commission to submit reports to President

and Congress not later than Sept. 1 of every second year through

fiscal year 1996, prior to repeal by Pub. L. 105-261, div. A,

title X, Sec. 1031(b), Oct. 17, 1998, 112 Stat. 2123.

SUBMISSION DATE FOR FIRST REPORT

Section 912(c) of Pub. L. 97-86 required the first report under

subsec. (c) of this section to be submitted not later than Dec. 1,

1982.

-EXEC-

EX. ORD. NO. 12682. COMMISSION ON ALTERNATIVE UTILIZATION OF

MILITARY FACILITIES

Ex. Ord. No. 12682, July 7, 1989, 54 F.R. 29315, provided:

By the authority vested in me as President by the Constitution

and laws of the United States of America, including section 2819 of

the Military Construction Authorization Act, 1989 (Public Law

100-456) (10 U.S.C. 2391 note), it is hereby ordered as follows:

Section 1. (a) I hereby establish the Commission on Alternative

Utilization of Military Facilities (''Commission'').

(b) The Commission shall consist of a representative of the

Department of Defense designated by the Secretary of Defense, a

representative of the Federal Bureau of Prisons designated by the

Attorney General, a representative of the National Institute on

Drug Abuse designated by the Secretary of Health and Human

Services, a representative of the General Services Administration

designated by the Administrator of General Services, a

representative of the Department of Housing and Urban Development

designated by the Secretary of Housing and Urban Development, and a

representative of the Office of National Drug Control Policy

designated by the Director of the Office of National Drug Control

Policy. The representative of the Department of Defense shall chair

the Commission.

(c) The Secretary of Defense shall provide such personnel and

support to the Commission as the Secretary determines is necessary

to accomplish its mission.

Sec. 2. (a) Subject to subsection (b), the Secretary of Defense

shall prepare and submit to the Commission reports listing active

and nonactive military facilities that are underutilized in whole

or in part or otherwise excess to the needs of the Department of

Defense.

(b) The first such report shall be prepared and submitted as soon

as possible for inclusion in the first report of the Commission.

The second report shall be prepared and submitted on January 30,

1990, and succeeding reports shall be prepared and submitted every

other year commencing on January 30, 1992, and continuing until

January 30, 1996.

Sec. 3. (a) Subject to subsection (b), the Commission shall

submit a report to the President and then to the Congress that

identifies those facilities, or parts of facilities, from the list

submitted by the Secretary of Defense under Section 2 that could be

effectively utilized or renovated to serve as:

(1) minimum security facilities for nonviolent prisoners,

(2) drug treatment facilities for nonviolent drug abusers, and

(3) facilities to assist the homeless.

(b) The first report of the Commission shall be submitted to the

President and then to the Congress by September 1, 1989. The

second, and succeeding reports of the Commission, shall be

submitted to the President and then to the Congress no later than

September 1, 1990, and every second year through September 1, 1996.

George Bush.

EX. ORD. NO. 12788. DEFENSE ECONOMIC ADJUSTMENT PROGRAM

Ex. Ord. No. 12788, Jan. 15, 1992, 57 F.R. 2213, as amended by

Ex. Ord. No. 13286, Sec. 33, Feb. 28, 2003, 68 F.R. 10625,

provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, including 10 U.S.C.

2391 and the Defense Economic Adjustment, Diversification,

Conversion, and Stabilization Act of 1990, enacted as Division D,

section 4001 et seq., of the National Defense Authorization Act for

Fiscal Year 1991, Public Law 101-510 (set out above), and to

provide coordinated Federal economic adjustment assistance

necessitated by changes in Department of Defense activities, it is

hereby ordered as follows:

Section 1. Function of the Secretary of Defense. The Secretary of

Defense shall, through the Economic Adjustment Committee, design

and establish a Defense Economic Adjustment Program.

Sec. 2. Purpose of the Defense Economic Adjustment Program. The

Defense Economic Adjustment Program shall assist in the alleviation

of serious community socioeconomic effects that result from major

Defense base closures, realignments, and Defense contract-related

adjustments, and the encroachment of the civilian community on the

mission of military installations.

Sec. 3. Functions of the Defense Economic Adjustment Program. The

Defense Economic Adjustment Program shall:

(a) Identify problems of States, regions, metropolitan areas, or

communities that result from major Defense base closures,

realignments, and Defense contract-related adjustments, and the

encroachment of the civilian community on the mission of military

installations and that require Federal assistance;

(b) Use and maintain a uniform socioeconomic impact analysis to

justify the use of Federal economic adjustment resources, prior to

particular realignments;

(c) Apply consistent policies, practices, and procedures in the

administration of Federal programs that are used to assist

Defense-affected States, regions, metropolitan areas, and

communities;

(d) Identify and strengthen existing agency mechanisms to

coordinate employment opportunities for displaced agency personnel;

(e) Identify and strengthen existing agency mechanisms to improve

reemployment opportunities for dislocated Defense industry

personnel;

(f) Assure timely consultation and cooperation with Federal,

State, regional, metropolitan, and community officials concerning

Defense-related impacts on Defense-affected communities' problems;

(g) Assure coordinated interagency and intergovernmental

adjustment assistance concerning Defense impact problems;

(h) Prepare, facilitate, and implement cost-effective strategies

and action plans to coordinate interagency and intergovernmental

economic adjustment efforts;

(i) Encourage effective Federal, State, regional, metropolitan,

and community cooperation and concerted involvement of public

interest groups and private sector organizations in Defense

economic adjustment activities;

(j) Serve as a clearinghouse to exchange information among

Federal, State, regional, metropolitan, and community officials

involved in the resolution of community economic adjustment

problems. Such information may include, for example, previous

studies, technical information, and sources of public and private

financing;

(k) Assist in the diversification of local economies to lessen

dependence on Defense activities;

(l) Encourage and facilitate private sector interim use of lands

and buildings to generate jobs as military activities diminish;

and,

(m) Develop ways to streamline property disposal procedures to

enable Defense-impacted communities to acquire base property to

generate jobs as military activities diminish.

Sec. 4. Economic Adjustment Committee.

(a) Membership. The Economic Adjustment Committee (''Committee'')

shall be composed of the following individuals, or a designated

principal deputy of these individuals, and such other individuals

from the executive branch as the President may designate. Such

individuals shall include the:

(1) Secretary of Agriculture;

(2) Attorney General;

(3) Secretary of Commerce;

(4) Secretary of Defense;

(5) Secretary of Education;

(6) Secretary of Energy;

(7) Secretary of Health and Human Services;

(8) Secretary of Housing and Urban Development;

(9) Secretary of the Interior;

(10) Secretary of Labor;

(11) Secretary of State;

(12) Secretary of Transportation;

(13) Secretary of the Treasury;

(14) Secretary of Veterans Affairs;

(15) Secretary of Homeland Security;

(16) Chairman, Council of Economic Advisers;

(17) Director of the Office of Management and Budget;

(18) Director of the Office of Personnel Management;

(19) Director of the United States Arms Control and Disarmament

Agency;

(20) Administrator of the Environmental Protection Agency;

(21) Director of the Federal Emergency Management Agency;

(22) Administrator of General Services;

(23) Administrator of the Small Business Administration; and,

(24) Postmaster General.

(b) Chairman. The Secretaries of Defense, Commerce, and Labor

shall rotate, on a yearly basis, as chairman of the Committee.

(c) Vice Chairman. The Assistant Secretary of Defense who

oversees the Department of Defense's Office of Economic Adjustment

shall serve as vice chairman of the Committee. The vice chairman

shall chair the Committee in the absence of both the chairman and

the chairman's designee and may also preside over meetings of

designated representatives of the concerned executive agencies.

(d) Executive Director. The head of the Department of Defense's

Office of Economic Adjustment shall provide all necessary policy

and administrative support for the Committee and shall be

responsible for coordinating the application of the Defense

Economic Adjustment Program to Department of Defense activities.

(e) Duties. The Committee shall:

(1) Advise, assist, and support the Defense Economic Adjustment

Program;

(2) Develop procedures for ensuring that State, regional, and

community officials and representatives of organized labor in those

States, municipalities, localities, or labor organizations that are

substantially and seriously affected by changes in Defense

expenditures, realignments or closures, or cancellation or

curtailment of major Defense contracts, are notified of available

Federal economic adjustment programs; and,

(3) Report annually to the President and then to the Congress on

the work of the Economic Adjustment Committee during the preceding

fiscal year.

Sec. 5. Responsibilities of Executive Agencies.

(a) The head of each agency represented on the Committee shall

designate an agency representative to:

(1) Serve as a liaison with the Secretary of Defense's economic

adjustment staff;

(2) Coordinate agency support and participation in economic

adjustment assistance projects; and,

(3) Assist in resolving Defense-related impacts on

Defense-affected communities.

(b) All executive agencies shall:

(1) Support, to the extent permitted by law, the economic

adjustment assistance activities of the Secretary of Defense. Such

support may include the use and application of personnel, technical

expertise, legal authorities, and available financial resources.

This support may be used, to the extent permitted by law, to

provide a coordinated Federal response to the needs of individual

States, regions, municipalities, and communities adversely affected

by necessary Defense changes;

(2) Afford priority consideration to requests from

Defense-affected communities for Federal technical assistance,

financial resources, excess or surplus property, or other

requirements, that are part of a comprehensive plan used by the

Committee.

Sec. 6. Judicial Review. This order shall not be interpreted to

create any right or benefit, substantive or procedural, enforceable

at law by a party against the United States, its agencies, its

officers, its agents, or any person.

Sec. 7. Construction. (a) Nothing in this order shall be

construed as subjecting any function vested by law in, or assigned

pursuant to law to, any agency or head thereof to the authority of

any other agency or officer or as abrogating or restricting any

such function in any manner.

(b) This order shall be effective immediately and shall supersede

Executive Order No. 12049.

(For abolition, transfer of functions, and treatment of

references to United States Arms Control and Disarmament Agency,

see section 6511 et seq. of Title 22, Foreign Relations and

Intercourse.)

-CITE-

10 USC Sec. 2392 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2392. Prohibition on use of funds to relieve economic

dislocations

-STATUTE-

(a) In order to help avoid the uneconomic use of Department of

Defense funds in the procurement of goods and services, the

Congress finds that it is necessary to prohibit the use of such

funds for certain purposes.

(b) No funds appropriated to or for the use of the Department of

Defense may be used to pay, in connection with any contract awarded

by the Department of Defense, a price differential for the purpose

of relieving economic dislocations.

-SOURCE-

(Added Pub. L. 97-86, title IX, Sec. 913(a)(1), Dec. 1, 1981, 95

Stat. 1123.)

-MISC1-

CONTRACTS MADE BY DEFENSE LOGISTICS AGENCY; PAYMENTS OF PRICE

DIFFERENTIALS TO RELIEVE ECONOMIC DISLOCATIONS; TEST PROGRAM;

INTERIM REPORTS

Pub. L. 97-252, title XI, Sec. 1109, Sept. 8, 1982, 96 Stat. 746,

as amended by Pub. L. 98-94, title XII, Sec. 1205, Sept. 24, 1983,

97 Stat. 683; Pub. L. 98-525, title XII, Sec. 1254, Oct. 19, 1984,

98 Stat. 2611, provided that:

''(a) The Secretary of Defense should conduct a test program

during fiscal years 1983, 1984, and 1985 in accordance with this

subsection to test the effect of exempting certain contracts of the

Department of Defense from the provisions of section 2392 of title

10, United States Code, and paying a price differential under such

contracts for the purpose of relieving economic dislocations.

Under such test program, the Secretary of Defense may exempt from

the provisions of such section any contract (other than a contract

for the purchase of fuel) made by the Defense Logistics Agency

during fiscal years 1983, 1984, and 1985 if the contract is to be

awarded to an individual or firm located in a Labor Surplus Area

(as defined and identified by the Department of Labor) and if the

Secretary determines -

''(1) that the awarding of such contract will not adversely

affect the national security of the United States;

''(2) that there is a reasonable expectation that bids will be

received from a sufficient number of responsible bidders so that

the award of such contract will be made at reasonable cost to the

United States;

''(3) that the price differential to be paid under such

contract will not exceed 2.2 percent; and

''(4) the value of such contract, when added to the cumulative

value of all other contracts awarded under the test program

authorized by this section, will not exceed $4,000,000,000.

''(b) Not later than April 15, 1983, April 15, 1984, and April

15, 1985 the President shall submit a report to Congress on the

implementation and results to that date of the test program

authorized by subsection (a). The report shall include an

assessment of the costs and benefits of the test program.''

(Amendment of subsecs. (a) and (b) by Pub. L. 98-525, Sec.

1254(a), was made effective Oct. 1, 1984; and amendment of subsec.

(a) by Pub. L. 98-525, Sec. 1254(b), was made effective as of Oct.

1, 1982.)

Similar provisions were contained in the following prior

authorization act:

1982 - Dec. 1, 1981, Pub. L. 97-86, title IX, Sec. 913(b), (c),

95 Stat. 1124.

-CITE-

10 USC Sec. 2393 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2393. Prohibition against doing business with certain offerors

or contractors

-STATUTE-

(a)(1) Except as provided in paragraph (2), the Secretary of a

military department may not solicit an offer from, award a contract

to, extend an existing contract with, or, when approval by the

Secretary of the award of a subcontract is required, approve the

award of a subcontract to, an offeror or contractor which to the

Secretary's knowledge has been debarred or suspended by another

Federal agency unless -

(A) in the case of debarment, the debarment of the offeror or

contractor by all other agencies has been terminated or the

period of time specified for such debarment has expired; and

(B) in the case of a suspension, the period of time specified

by all other agencies for the suspension of the offeror or

contractor has expired.

(2) Paragraph (1) does not apply in any case in which the

Secretary concerned determines that there is a compelling reason to

solicit an offer from, award a contract to, extend a contract with,

or approve a subcontract with such offeror or contractor.

(b) Whenever the Secretary concerned makes a determination

described in subsection (a)(2), he shall, at the time of the

determination, transmit a notice to the Administrator of General

Services describing the determination. The Administrator of

General Services shall maintain each such notice in a file

available for public inspection.

(c) In this section:

(1) The term ''debar'' means to exclude, pursuant to

established administrative procedures, from Government

contracting and subcontracting for a specified period of time

commensurate with the seriousness of the failure or offense or

the inadequacy of performance.

(2) The term ''suspend'' means to disqualify, pursuant to

established administrative procedures, from Government

contracting and subcontracting for a temporary period of time

because a concern or individual is suspected of engaging in

criminal, fraudulent, or seriously improper conduct.

(d) The Secretary of Defense shall prescribe in regulations a

requirement that each contractor under contract with the Department

of Defense shall require each contractor to whom it awards a

contract (in this section referred to as a subcontractor) to

disclose to the contractor whether the subcontractor is or is not,

as of the time of the award of the subcontract, debarred or

suspended by the Federal Government from Government contracting or

subcontracting. The requirement shall apply to any subcontractor

whose subcontract is in an amount greater than the simplified

acquisition threshold (as defined in section 4(11) of the Office of

Federal Procurement Policy Act (41 U.S.C. 403(11))). The

requirement shall not apply in the case of a subcontract for the

acquisition of commercial items (as defined in section 4(12) of the

Office of Federal Procurement Policy Act (41 U.S.C. 403(12))).

-SOURCE-

(Added Pub. L. 97-86, title IX, Sec. 914(a), Dec. 1, 1981, 95 Stat.

1124; amended Pub. L. 100-180, div. A, title XII, Sec. 1231(17),

Dec. 4, 1987, 101 Stat. 1161; Pub. L. 101-510, div. A, title VIII,

Sec. 813, Nov. 5, 1990, 104 Stat. 1596; Pub. L. 102-190, div. A,

title X, Sec. 1061(a)(11), Dec. 5, 1991, 105 Stat. 1473; Pub. L.

103-355, title IV, Sec. 4102(e), title VIII, Sec. 8105(c), Oct. 13,

1994, 108 Stat. 3340, 3392.)

-MISC1-

AMENDMENTS

1994 - Subsec. (d). Pub. L. 103-355 substituted ''greater than

the simplified acquisition threshold (as defined in section 4(11)

of the Office of Federal Procurement Policy Act (41 U.S.C.

403(11))).'' for ''above the small purchase amount established in

section 2304(g) of this title.'' in second sentence and inserted at

end ''The requirement shall not apply in the case of a subcontract

for the acquisition of commercial items (as defined in section

4(12) of the Office of Federal Procurement Policy Act (41 U.S.C.

403(12))).''

1991 - Subsec. (d). Pub. L. 102-190 substituted ''Federal

Government'' for ''Federal government''.

1990 - Subsec. (d). Pub. L. 101-510 added subsec. (d).

1987 - Subsec. (c). Pub. L. 100-180 inserted ''The term'' after

each par. designation and revised first word in quotes in each par.

to make initial letter of such word lowercase.

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2410f of this title; title

33 section 569f; title 42 section 5206.

-CITE-

10 USC Sec. 2394 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2394. Contracts for energy or fuel for military installations

-STATUTE-

(a) Subject to subsection (b), the Secretary of a military

department may enter into contracts for periods of up to 30 years -

(1) under section 2689 of this title; and

(2) for the provision and operation of energy production

facilities on real property under the Secretary's jurisdiction or

on private property and the purchase of energy produced from such

facilities.

(b) A contract may be made under subsection (a) only after the

approval of the proposed contract by the Secretary of Defense.

(c) The costs of contracts under this section for any year may be

paid from annual appropriations for that year.

-SOURCE-

(Added Pub. L. 97-214, Sec. 6(a)(1), July 12, 1982, 96 Stat. 171;

amended Pub. L. 97-321, title VIII, Sec. 805(b)(3), Oct. 15, 1982,

96 Stat. 1573; Pub. L. 100-26, Sec. 7(k)(2), Apr. 21, 1987, 101

Stat. 284; Pub. L. 101-510, div. A, title XIII, Sec. 1301(12),

Nov. 5, 1990, 104 Stat. 1668.)

-COD-

CODIFICATION

Another section 2394 was renumbered section 2395 of this title.

-MISC3-

AMENDMENTS

1990 - Subsec. (b). Pub. L. 101-510 substituted ''only after the

approval of the proposed contract by the Secretary of Defense'' for

''only -

''(1) after the approval of the proposed contract by the

Secretary of Defense; and

''(2) after the Committees on Armed Services and on

Appropriations of the Senate and House of Representatives have

been notified of the terms of the proposed contract, including

the dollar amount of the contract and the amount of energy or

fuel to be delivered to the Government under the contract''.

1987 - Subsec. (c). Pub. L. 100-26, which directed that ''The

term'' be inserted in each paragraph after the paragraph

designation and the first word after the first quotation marks in

each paragraph be revised so that the initial letter of such word

is lowercase, could not be executed because subsec. (c) contained

no paragraphs and no quoted words. The probable intent of Congress

was to amend section 2393(c) of this title.

1982 - Subsec. (a). Pub. L. 97-321, Sec. 805(b)(3)(A),

substituted ''subsection (b)'' for ''subsection (c)''.

Subsecs. (c), (d). Pub. L. 97-321, Sec. 805(b)(3)(B),

redesignated subsec. (d) as (c).

EFFECTIVE DATE

Section effective Oct. 1, 1982, and applicable to military

construction projects, and to construction and acquisition of

military family housing authorized before, on, or after such date,

see section 12(a) of Pub. L. 97-214, set out as a note under

section 2801 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 40 section 591.

-CITE-

10 USC Sec. 2394a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2394a. Procurement of energy systems using renewable forms of

energy

-STATUTE-

(a) In procuring energy systems the Secretary of a military

department shall procure systems that use solar energy or other

renewable forms of energy whenever the Secretary determines that

such procurement is possible and will be cost effective, reliable,

and otherwise suited to supplying the energy needs of the military

department under his jurisdiction.

(b) The Secretary of Defense shall from time to time study uses

for solar energy and other renewable forms of energy to determine

what uses of such forms of energy may be cost effective and

reliable in supplying the energy needs of the Department of

Defense. The Secretary of Defense, based upon the results of such

studies, shall from time to time issue policy guidelines to be

followed by the Secretaries of the military departments in carrying

out subsection (a) and section 2857 of this title.

(c)(1) For the purposes of this section, an energy system using

solar energy or other renewable forms of energy shall be considered

to be cost effective if the difference between (A) the original

investment cost of the energy system using such a form of energy,

and (B) the original investment cost of the energy system not using

such a form of energy can be recovered over the expected life of

the system.

(2) A determination under paragraph (1) concerning whether a

cost-differential can be recovered over the expected life of a

system shall be made using the life-cycle cost methods and

procedures established pursuant to section 544(a) of the National

Energy Conservation Policy Act (42 U.S.C. 8254(a)).

-SOURCE-

(Added Pub. L. 97-321, title VIII, Sec. 801(a)(1), Oct. 15, 1982,

96 Stat. 1569; amended Pub. L. 98-525, title XIV, Sec. 1405(36),

Oct. 19, 1984, 98 Stat. 2624; Pub. L. 101-510, div. A, title XIII,

Sec. 1322(a)(7), div. B, title XXVIII, Sec. 2852(a), Nov. 5, 1990,

104 Stat. 1671, 1804; Pub. L. 102-25, title VII, Sec. 701(g)(2),

Apr. 6, 1991, 105 Stat. 115.)

-MISC1-

AMENDMENTS

1991 - Subsec. (c)(2). Pub. L. 102-25 inserted ''(42 U.S.C.

8254(a))'' after ''Policy Act''.

1990 - Subsec. (b). Pub. L. 101-510, Sec. 1322(a)(7), struck out

''(1)'' after ''(b)'' and struck out par. (2) which read as

follows: ''The Secretary of Defense shall submit to the Committees

on Armed Services of the Senate and House of Representatives not

less often than every two years a report on the studies conducted

pursuant to paragraph (1). Each such report shall include any

findings of the Secretary with respect to the use of solar energy

and other renewable forms of energy in supplying the energy needs

of the Department of Defense and any recommendations of the

Secretary for changes in law that may be appropriate in light of

such studies.''

Subsec. (c)(2), (3). Pub. L. 101-510, Sec. 2852(a), added par.

(2) and struck out former pars. (2) and (3) which read as follows:

''(2) A determination under paragraph (1) of whether a

cost-differential can be recovered over the expected life of a

system shall be made using accepted life-cycle costing procedures

and shall include -

''(A) the use of all capital expenses and all operating and

maintenance expenses associated with the energy system using

solar energy or other renewable forms of energy, and not using

such a form of energy, over the expected life of the system or

during a period of 25 years, whichever is shorter;

''(B) the use of fossil fuel costs (and a rate of cost growth

for fossil fuel costs) as determined by the Secretary of Defense;

and

''(C) the use of a discount rate of 7 percent per year for all

expenses of the energy system.

''(3) For the purpose of any life-cycle cost analysis under this

subsection, the original investment cost of the energy system using

solar energy or other renewable forms of energy shall be reduced by

10 percent to reflect an allowance for an investment cost credit.''

1984 - Pub. L. 98-525 substituted ''using'' for ''powered by'' in

section catchline.

SUBMISSION DATE FOR FIRST REPORT

Section 801(a)(3) of Pub. L. 97-321 required the first report

under subsec. (b)(2) of this section to be submitted not later than

two years after Oct. 15, 1982.

-CITE-

10 USC Sec. 2395 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2395. Availability of appropriations for procurement of

technical military equipment and supplies

-STATUTE-

Funds appropriated to the Department of Defense for the

procurement of technical military equipment and supplies remain

available until spent.

-SOURCE-

(Added Pub. L. 97-258, Sec. 2(b)(4)(B), Sept. 13, 1982, 96 Stat.

1052, Sec. 2394; renumbered Sec. 2395 and amended Pub. L. 97-295,

Sec. 1(28)(A), Oct. 12, 1982, 96 Stat. 1291.)

-MISC1-

Historical and Revision Notes

1982 Act (Pub. L. 97-258)

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2394 31:649c(1). Aug. 10, 1956, ch.

1041, Sec. 40(1),

70A Stat. 636; Nov.

17, 1971, Pub. L.

92-156, Sec.

201(b), 85 Stat.

424.

-------------------------------

The words ''Unless otherwise provided in the appropriation Act

concerned'' are omitted as unnecessary and for consistency. The

word ''Funds'' is substituted for ''moneys'' for consistency in

title 10. The word ''military'' is added before ''public'' for

clarity. The words ''including moneys appropriated to the

Department of the Navy for the procurement and construction of

guided missiles'' are omitted as included in ''technical military

equipment''.

1982 Act (Pub. L. 97-295)

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2395 10:2394. Sept. 13, 1982, Pub.

L. 97-258, Sec.

2(b)(4)(B), 96

Stat. 1053.

-------------------------------

This redesignates 10:2394 (enacted by Pub. L. 97-258) as 10:2395

because of the enactment of another 10:2394 by Pub. L. 97-214, Sec.

6(a)(1), July 12, 1982, 96 Stat. 171, and amends the section

generally to eliminate the words ''and the construction of military

public works'' because of section 10(b)(5) of the Military

Construction Codification Act (Pub. L. 97-214, July 12, 1982, 96

Stat. 176) which struck corresponding words from the source statute

for 10:2394 subsequent to Apr. 15, 1982, the cut-off date

prescribed by section 4(a) of Pub. L. 97-258, section 2(b)(4)(B) of

which enacted 10:2394.

-COD-

CODIFICATION

Another section 2395 was renumbered section 2396 of this title.

-MISC3-

AMENDMENTS

1982 - Pub. L. 97-295 struck out ''and the construction of

military public works'' after ''supplies''.

-CITE-

10 USC Sec. 2396 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2396. Advances for payments for compliance with foreign laws,

rent in foreign countries, tuition, public utility services,

and pay and supplies of armed forces of friendly foreign

countries

-STATUTE-

(a) An advance under an appropriation to the Department of

Defense may be made to pay for -

(1) compliance with laws and ministerial regulations of a

foreign country;

(2) rent in a foreign country for periods of time determined by

local custom;

(3) tuition; and

(4) public service utilities.

(b)(1) Under regulations prescribed by the Secretary of Defense,

or by the Secretary of Homeland Security with respect to the Coast

Guard when it is not operating as a service of the Navy, an officer

of an armed force of the United States accountable for public money

may advance amounts to a disbursing official of a friendly foreign

country or members of an armed force of a friendly foreign country

for -

(A) pay and allowances to members of the armed force of that

country; and

(B) necessary supplies and services.

(2) An advance may be made under this subsection only if the

President has made an agreement with the foreign country -

(A) requiring reimbursement to the United States for amounts

advanced;

(B) requiring the appropriate authority of the country to

advance amounts reciprocally to members of the armed forces of

the United States; and

(C) containing any other provision the President considers

necessary to carry out this subsection and to safeguard the

interests of the United States.

-SOURCE-

(Added Pub. L. 97-258, Sec. 2(b)(4)(B), Sept. 13, 1982, 96 Stat.

1053, Sec. 2395; renumbered Sec. 2396 and amended Pub. L. 97-295,

Sec. 1(28)(B), Oct. 12, 1982, 96 Stat. 1291; Pub. L. 105-85, div.

A, title X, Sec. 1014(a), (b)(1), Nov. 18, 1997, 111 Stat. 1875;

Pub. L. 107-296, title XVII, Sec. 1704(b)(1), Nov. 25, 2002, 116

Stat. 2314.)

-MISC1-

Historical and Revision Notes

1982 Act (Pub. L. 97-258)

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2395(a) 31:529i. July 13, 1955, ch.

358, Sec. 602, 69

Stat. 314.

2395(b) 31:529j. Oct. 19, 1965, Pub.

L. 89-265, 79 Stat.

989.

-------------------------------

In subsection (a), the words ''On and after July 13, 1955'' are

omitted as executed. The words ''An advance'' are substituted for

''section 529 of this title shall not apply in the case of

payments'' because of the restatement.

In subsection (b), the words ''armed force of the United States''

are substituted for ''Army, Navy, Air Force, Marine Corps, or Coast

Guard'' because of 10:101(4) and to avoid confusion with the phrase

''armed force of a friendly foreign country''.

In subsection (b)(1), before clause (A), the words ''the

Secretary of Transportation with respect to the Coast Guard when it

is not operating as a service in the Navy'' are substituted for

''the Secretary of the Treasury in their respective areas of

responsibility'' because of 14:3 and 49:1655(b)(1) and (2). The

words ''disbursing official'' are substituted for ''cashiers,

disbursing officers'' for consistency with other titles of the

United States Code and to eliminate unnecessary words.

1982 Act (Pub. L. 97-295)

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2396 10:2395. Sept. 13, 1982, Pub.

L. 97-258, Sec.

2(b)(4)(B), 96

Stat. 1053.

-------------------------------

This redesignates 10:2395 as 10:2396 because of the redesignation

of 10:2394 (enacted by Pub. L. 97-258) as 10:2395, and substitutes

''any other'' for ''another'' in subsec. (b)(2)(C).

AMENDMENTS

2002 - Subsec. (b)(1). Pub. L. 107-296 substituted ''of Homeland

Security'' for ''of Transportation'' in introductory provisions.

1997 - Pub. L. 105-85, Sec. 1014(b)(1), inserted ''public utility

services,'' after ''tuition,'' in section catchline.

Subsec. (a)(4). Pub. L. 105-85, Sec. 1014(a), added par. (4).

1982 - Subsec. (b)(2)(C). Pub. L. 97-295 substituted ''any

other'' for ''another''.

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-296 effective on the date of transfer of

the Coast Guard to the Department of Homeland Security, see section

1704(g) of Pub. L. 107-296, set out as a note under section 101 of

this title.

-CITE-

10 USC Sec. 2397 to 2397c 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2397 to 2397c. Repealed. Pub. L. 104-106, div. D, title

XLIII, Sec. 4304(b)(1), Feb. 10, 1996, 110 Stat. 664)

-MISC1-

Section 2397, added Pub. L. 97-295, Sec. 1(29)(A), Oct. 12, 1982,

96 Stat. 1291; amended Pub. L. 99-145, title IX, Sec. 922, Nov. 8,

1985, 99 Stat. 693; Pub. L. 100-26, Sec. 7(j)(5), (k)(2), Apr. 21,

1987, 101 Stat. 283, 284; Pub. L. 102-25, title VII, Sec.

701(d)(6), Apr. 6, 1991, 105 Stat. 114; Pub. L. 102-484, div. A,

title X, Sec. 1052(29), Oct. 23, 1992, 106 Stat. 2500; Pub. L.

103-355, title IV, Sec. 4401(d), title VIII, Sec. 8105(d), Oct. 13,

1994, 108 Stat. 3348, 3392, related to filing of certain reports by

employees or former employees of defense contractors.

Section 2397a, added Pub. L. 99-145, title IX, Sec. 923(a)(1),

Nov. 8, 1985, 99 Stat. 695; amended Pub. L. 100-26, Sec. 7(k)(2),

Apr. 21, 1987, 101 Stat. 284; Pub. L. 101-280, Sec. 10(b), May 4,

1990, 104 Stat. 162, related to requirements relating to private

employment contacts between certain Department of Defense

procurement officials and defense contractors.

Section 2397b, added Pub. L. 99-500, Sec. 101(c) (title X, Sec.

931(a)(1)), Oct. 18, 1986, 100 Stat. 1783-82, 1783-156, and Pub. L.

99-591, Sec. 101(c) (title X, Sec. 931(a)(1)), Oct. 30, 1986, 100

Stat. 3341-82, 3341-156; Pub. L. 99-661, div. A, title IX,

formerly title IV, Sec. 931(a)(1), Nov. 14, 1986, 100 Stat. 3936,

renumbered title IX, Pub. L. 100-26, Sec. 3(5), Apr. 21, 1987, 101

Stat. 273; amended Pub. L. 100-180, div. A, title VIII, Sec. 821,

Dec. 4, 1987, 101 Stat. 1132; Pub. L. 103-355, title VIII, Sec.

8105(e), Oct. 13, 1994, 108 Stat. 3392, related to limitations on

employment by contractors of certain former Department of Defense

procurement officials.

Section 2397c, added Pub. L. 99-500, Sec. 101(c) (title X, Sec.

931(a)(1)), Oct. 18, 1986, 100 Stat. 1783-82, 1783-159, and Pub. L.

99-591, Sec. 101(c) (title X, Sec. 931(a)(1)), Oct. 30, 1986, 100

Stat. 3341-82, 3341-159; Pub. L. 99-661, div. A, title IX,

formerly title IV, Sec. 931(a)(1), Nov. 14, 1986, 100 Stat. 3938,

renumbered title IX, Pub. L. 100-26, Sec. 3(5), Apr. 21, 1987, 101

Stat. 273; amended Pub. L. 103-355, title VIII, Sec. 8105(f), Oct.

13, 1994, 108 Stat. 3392, related to requirements for defense

contractors concerning former Department of Defense officials.

The subject matter of former sections 2397 to 2397c of this title

is now covered in section 423 of Title 41, Public Contracts.

EFFECTIVE DATE OF REPEAL

For effective date and applicability of repeal, see section 4401

of Pub. L. 104-106, set out as an Effective Date of 1996 Amendment

note under section 251 of Title 41, Public Contracts.

-CITE-

10 USC Sec. 2398 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2398. Procurement of gasohol as motor vehicle fuel

-STATUTE-

(a) Other Federal Fuel Procurements. - Consistent with the

vehicle management practices prescribed by the heads of affected

departments and agencies of the Federal Government and consistent

with Executive Order Number 12261, whenever the Secretary of

Defense enters into a contract for the procurement of unleaded

gasoline that is subject to tax under section 4081 of the Internal

Revenue Code of 1986 for motor vehicles of a department or agency

of the Federal Government other than the Department of Defense, the

Secretary shall buy alcohol-gasoline blends containing at least 10

percent domestically produced alcohol in any case in which the

price of such fuel is the same as, or lower than, the price of

unleaded gasoline.

(b) Solicitations. - Whenever the Secretary issues a solicitation

for bids to procure unleaded gasoline under subsection (a), the

Secretary shall expressly include in such solicitation a request

for bids on alcohol-gasoline blends containing at least 10 percent

domestically produced alcohol.

-SOURCE-

(Added Pub. L. 97-295, Sec. 1(29)(A), Oct. 12, 1982, 96 Stat. 1293;

amended Pub. L. 102-190, div. A, title VIII, Sec. 841(a), Dec. 5,

1991, 105 Stat. 1448; Pub. L. 104-106, div. A, title X, Sec.

1061(h), Feb. 10, 1996, 110 Stat. 443.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2398 10:2388 (note). Nov. 9, 1979, Pub.

L. 96-107, Sec.

815, 93 Stat. 817.

-------------------------------

The word ''prescribed'' is substituted for ''determined'' because

it is more appropriate. The word ''Secretary'' is substituted for

''Department of Defense'' because the responsibility is in the head

of the agency. The word ''shall'' is substituted for ''is

authorized and directed'' for clarity.

-REFTEXT-

REFERENCES IN TEXT

Executive Order Number 12661, referred to in subsec. (a), is set

out under section 8871 of Title 42, The Public Health and Welfare.

Section 4081 of the Internal Revenue Code of 1986, referred to in

subsec. (a), is classified to section 4081 of Title 26, Internal

Revenue Code.

-MISC2-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-106, Sec. 1061(h)(1), (2)(A),

redesignated subsec. (b) as (a) and struck out former subsec. (a)

which read as follows: ''DOD Motor Vehicles. - To the maximum

extent feasible and consistent with overall defense needs and

vehicle management practices prescribed by the Secretary of

Defense, the Secretary shall make contracts, by competitive bid and

subject to appropriations, to purchase domestically produced

alcohol or alcohol-gasoline blends containing at least 10 percent

domestically produced alcohol for use in motor vehicles owned or

operated by the Department of Defense.''

Subsec. (b). Pub. L. 104-106, Sec. 1061(h)(2), redesignated

subsec. (c) as (b) and substituted ''subsection (a)'' for

''subsection (b)''. Former subsec. (b) redesignated (a).

Subsec. (c). Pub. L. 104-106, Sec. 1061(h)(2)(A), redesignated

subsec. (c) as (b).

1991 - Pub. L. 102-190 designated existing provisions as subsec.

(a), inserted heading, and added subsecs. (b) and (c).

EFFECTIVE DATE OF 1991 AMENDMENT

Section 841(b) of Pub. L. 102-190 provided that: ''Section

2398(b) (now 2398(a)) of title 10, United States Code, as added by

subsection (a), shall apply with respect to contracts awarded

pursuant to solicitations issued after the expiration of the

180-day period beginning on the date of the enactment of this Act

(Dec. 5, 1991).''

REPORT ON EXEMPTIONS AND SENSE OF CONGRESS REGARDING PURCHASE OF

DOMESTIC GASOHOL

For requirement that Secretary of Defense review all exemptions

granted for Department of Defense to requirements of this section,

terminate any exemption determined to be no longer appropriate, and

submit to Congress report on results of review not later than 90

days after Dec. 5, 1991, with justification for exemptions that

remain in effect, and for sense of Congress that Department of

Defense vehicles be refueled with alcohol-gasoline blend containing

at least 10 percent domestically produced alcohol if available

along normal travel route of vehicle at same or lower price than

unleaded gasoline, see section 841(c) and (d) of Pub. L. 102-190,

set out as a note under section 8871 of Title 42, The Public Health

and Welfare.

-CITE-

10 USC Sec. 2399 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2399. Operational test and evaluation of defense acquisition

programs

-STATUTE-

(a) Condition for Proceeding Beyond Low-Rate Initial Production.

- (1) The Secretary of Defense shall provide that a major defense

acquisition program may not proceed beyond low-rate initial

production until initial operational test and evaluation of the

program is completed.

(2) In this subsection, the term ''major defense acquisition

program'' means a conventional weapons system that -

(A) is a major system within the meaning of that term in

section 2302(5) of this title; and

(B) is designed for use in combat.

(b) Operational Test and Evaluation. - (1) Operational testing of

a major defense acquisition program may not be conducted until the

Director of Operational Test and Evaluation of the Department of

Defense approves (in writing) the adequacy of the plans (including

the projected level of funding) for operational test and evaluation

to be conducted in connection with that program.

(2) The Director shall analyze the results of the operational

test and evaluation conducted for each major defense acquisition

program. At the conclusion of such testing, the Director shall

prepare a report stating the opinion of the Director as to -

(A) whether the test and evaluation performed were adequate;

and

(B) whether the results of such test and evaluation confirm

that the items or components actually tested are effective and

suitable for combat.

(3) The Director shall submit each report under paragraph (2) to

the Secretary of Defense, the Under Secretary of Defense for

Acquisition, Technology, and Logistics, and the congressional

defense committees. Each such report shall be submitted to those

committees in precisely the same form and with precisely the same

content as the report originally was submitted to the Secretary and

Under Secretary and shall be accompanied by such comments as the

Secretary may wish to make on the report.

(4) A final decision within the Department of Defense to proceed

with a major defense acquisition program beyond low-rate initial

production may not be made until the Director has submitted to the

Secretary of Defense the report with respect to that program under

paragraph (2) and the congressional defense committees have

received that report.

(5) In this subsection, the term ''major defense acquisition

program'' has the meaning given that term in section 139(a)(2)(B)

of this title.

(c) Determination of Quantity of Articles Required for

Operational Testing. - The quantity of articles of a new system

that are to be procured for operational testing shall be determined

by -

(1) the Director of Operational Test and Evaluation of the

Department of Defense, in the case of a new system that is a

major defense acquisition program (as defined in section

139(a)(2)(B) of this title); or

(2) the operational test and evaluation agency of the military

department concerned, in the case of a new system that is not a

major defense acquisition program.

(d) Impartiality of Contractor Testing Personnel. - In the case

of a major defense acquisition program (as defined in subsection

(a)(2)), no person employed by the contractor for the system being

tested may be involved in the conduct of the operational test and

evaluation required under subsection (a). The limitation in the

preceding sentence does not apply to the extent that the Secretary

of Defense plans for persons employed by that contractor to be

involved in the operation, maintenance, and support of the system

being tested when the system is deployed in combat.

(e) Impartial Contracted Advisory and Assistance Services. - (1)

The Director may not contract with any person for advisory and

assistance services with regard to the test and evaluation of a

system if that person participated in (or is participating in) the

development, production, or testing of such system for a military

department or Defense Agency (or for another contractor of the

Department of Defense).

(2) The Director may waive the limitation under paragraph (1) in

any case if the Director determines in writing that sufficient

steps have been taken to ensure the impartiality of the contractor

in providing the services. The Inspector General of the Department

of Defense shall review each such waiver and shall include in the

Inspector General's semi-annual report an assessment of those

waivers made since the last such report.

(3)(A) A contractor that has participated in (or is participating

in) the development, production, or testing of a system for a

military department or Defense Agency (or for another contractor of

the Department of Defense) may not be involved (in any way) in the

establishment of criteria for data collection, performance

assessment, or evaluation activities for the operational test and

evaluation.

(B) The limitation in subparagraph (A) does not apply to a

contractor that has participated in such development, production,

or testing solely in testing for the Federal Government.

(f) Source of Funds for Testing. - The costs for all tests

required under subsection (a) shall be paid from funds available

for the system being tested.

(g) Director's Annual Report. - As part of the annual report of

the Director under section 139 of this title, the Director shall

describe for each program covered in the report the status of test

and evaluation activities in comparison with the test and

evaluation master plan for that program, as approved by the

Director. The Director shall include in such annual report a

description of each waiver granted under subsection (e)(2) since

the last such report.

(h) Definitions. - In this section:

(1) The term ''operational test and evaluation'' has the

meaning given that term in section 139(a)(2)(A) of this title.

For purposes of subsection (a), that term does not include an

operational assessment based exclusively on -

(A) computer modeling;

(B) simulation; or

(C) an analysis of system requirements, engineering

proposals, design specifications, or any other information

contained in program documents.

(2) The term ''congressional defense committees'' means -

(A) the Committee on Armed Services and the Committee on

Appropriations of the Senate; and

(B) the Committee on Armed Services and the Committee on

Appropriations of the House of Representatives.

-SOURCE-

(Added Pub. L. 101-189, div. A, title VIII, Sec. 802(a)(1), Nov.

29, 1989, 103 Stat. 1484; amended Pub. L. 102-484, div. A, title

VIII, Sec. 819, Oct. 23, 1992, 106 Stat. 2458; Pub. L. 103-160,

div. A, title IX, Sec. 904(d)(1), Nov. 30, 1993, 107 Stat. 1728;

Pub. L. 103-337, div. A, title X, Sec. 1070(a)(11), (f), Oct. 5,

1994, 108 Stat. 2856, 2859; Pub. L. 104-106, div. A, title XV,

Sec. 1502(a)(19), Feb. 10, 1996, 110 Stat. 504; Pub. L. 106-65,

div. A, title X, Sec. 1067(1), Oct. 5, 1999, 113 Stat. 774; Pub.

L. 107-107, div. A, title X, Sec. 1048(b)(2), Dec. 28, 2001, 115

Stat. 1225; Pub. L. 107-314, div. A, title X, Sec. 1062(a)(9),

Dec. 2, 2002, 116 Stat. 2650.)

-MISC1-

PRIOR PROVISIONS

A prior section 2399, added Pub. L. 97-295, Sec. 1(29)(A), Oct.

12, 1982, 96 Stat. 1293, which related to limitation on

availability of appropriations to reimburse a contractor for the

cost of commercial insurance, was repealed by Pub. L. 100-370, Sec.

1(f)(2)(B), July 19, 1988, 102 Stat. 846, and was restated in

section 2324(e)(1)(L) of this title by section 1(f)(2)(A) of Pub.

L. 100-370.

AMENDMENTS

2002 - Subsec. (a)(2). Pub. L. 107-314 substituted ''means a

conventional weapons system that'' for ''means'' in introductory

provisions and struck out ''a conventional weapons system that''

before ''is a major system'' in subpar. (A).

2001 - Subsec. (b)(3). Pub. L. 107-107 substituted ''Under

Secretary of Defense for Acquisition, Technology, and Logistics''

for ''Under Secretary of Defense for Acquisition and Technology''.

1999 - Subsec. (h)(2)(B). Pub. L. 106-65 substituted ''Committee

on Armed Services'' for ''Committee on National Security''.

1996 - Subsec. (h)(2). Pub. L. 104-106 substituted ''means - ''

and subpars. (A) and (B) for ''means the Committees on Armed

Services and the Committees on Appropriations of the Senate and

House of Representatives.''

1994 - Subsecs. (b)(5), (c)(1). Pub. L. 103-337, Sec.

1070(a)(11)(A), substituted ''139(a)(2)(B)'' for ''138(a)(2)(B)''.

Subsec. (e)(3)(B). Pub. L. 103-337, Sec. 1070(f), substituted

''solely in testing for'' for ''solely as a representative of''.

Subsec. (g). Pub. L. 103-337, Sec. 1070(a)(11)(B), substituted

''139'' for ''138''.

Subsec. (h)(1). Pub. L. 103-337, Sec. 1070(a)(11)(C), substituted

''139(a)(2)(A)'' for ''138(a)(2)(A)''.

1993 - Subsec. (b)(3). Pub. L. 103-160 substituted ''Under

Secretary of Defense for Acquisition and Technology'' for ''Under

Secretary of Defense for Acquisition''.

1992 - Subsec. (e)(3). Pub. L. 102-484 designated existing

provisions as subpar. (A) and added subpar. (B).

ASSESSMENT OF RISK IN CONCURRENT DEVELOPMENT OF MAJOR DEFENSE

ACQUISITION SYSTEMS

Section 801 of Pub. L. 101-189 provided that:

''(a) Establishment of Policy. - The Secretary of Defense shall

establish guidelines for -

''(1) determining the degree of concurrency that is appropriate

for the development of major defense acquisition systems; and

''(2) assessing the degree of risk associated with various

degrees of concurrency.

''(b) Report on Guidelines. - The Secretary shall submit to

Congress a report that describes the guidelines established under

subsection (a) and the method used for assessing risk associated

with concurrency.

''(c) Report on Concurrency in Major Acquisition Programs. - (1)

The Secretary shall also submit to Congress a report outlining the

risk associated with concurrency for each major defense acquisition

program that is in either full-scale development or low-rate

initial production as of January 1, 1990.

''(2) The report shall include consideration of the following

matters with respect to each such program:

''(A) The degree of confidence in the enemy threat assessment

for establishing the system's requirements.

''(B) The type of contract involved.

''(C) The degree of stability in program funding.

''(D) The level of maturity of technology involved in the

system.

''(E) The availability of adequate test assets, including

facilities and ranges.

''(F) The plans for transition from development to production.

''(d) Submission of Reports. - The reports under subsections (b)

and (c) shall be submitted to Congress not later than March 1,

1990.

''(e) Definition. - For purposes of this section, the term

'concurrency' means the degree of overlap between the development

and production processes of an acquisition program.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2400 of this title.

-CITE-

10 USC Sec. 2400 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2400. Low-rate initial production of new systems

-STATUTE-

(a) Determination of Quantities To Be Procured for Low-Rate

Initial Production. - (1) In the course of the development of a

major system, the determination of what quantity of articles of

that system should be procured for low-rate initial production

(including the quantity to be procured for preproduction

verification articles) shall be made -

(A) when the milestone B decision with respect to that system

is made; and

(B) by the official of the Department of Defense who makes that

decision.

(2) In this section, the term ''milestone B decision'' means the

decision to approve the system development and demonstration of a

major system by the official of the Department of Defense

designated to have the authority to make that decision.

(3) Any increase from a quantity determined under paragraph (1)

may only be made with the approval of the official making the

determination.

(4) The quantity of articles of a major system that may be

procured for low-rate initial production may not be less than one

operationally configured production unit unless another quantity is

established at the milestone B decision.

(5) The Secretary of Defense shall include a statement of the

quantity determined under paragraph (1) in the first SAR submitted

with respect to the program concerned after that quantity is

determined. If the quantity exceeds 10 percent of the total number

of articles to be produced, as determined at the milestone B

decision with respect to that system, the Secretary shall include

in the statement the reasons for such quantity. For purposes of

this paragraph, the term ''SAR'' means a Selected Acquisition

Report submitted under section 2432 of this title.

(b) Low-Rate Initial Production of Weapon Systems. - Except as

provided in subsection (c), low-rate initial production with

respect to a new system is production of the system in the minimum

quantity necessary -

(1) to provide production-configured or representative articles

for operational tests pursuant to section 2399 of this title;

(2) to establish an initial production base for the system; and

(3) to permit an orderly increase in the production rate for

the system sufficient to lead to full-rate production upon the

successful completion of operational testing.

(c) Low-Rate Initial Production of Naval Vessel and Satellite

Programs. - With respect to naval vessel programs and military

satellite programs, low-rate initial production is production of

items at the minimum quantity and rate that (1) preserves the

mobilization production base for that system, and (2) is feasible,

as determined pursuant to regulations prescribed by the Secretary

of Defense.

-SOURCE-

(Added Pub. L. 101-189, div. A, title VIII, Sec. 803(a), Nov. 29,

1989, 103 Stat. 1487; amended Pub. L. 103-355, title III, Sec.

3015, Oct. 13, 1994, 108 Stat. 3332; Pub. L. 104-106, div. A,

title X, Sec. 1062(d), div. D, title XLIII, Sec. 4321(b)(13), Feb.

10, 1996, 110 Stat. 444, 673; Pub. L. 107-107, div. A, title VIII,

Sec. 821(c), Dec. 28, 2001, 115 Stat. 1182.)

-MISC1-

PRIOR PROVISIONS

A prior section 2400 was renumbered section 2534 of this title.

AMENDMENTS

2001 - Subsec. (a)(1)(A). Pub. L. 107-107, Sec. 821(c)(1),

substituted ''milestone B'' for ''milestone II''.

Subsec. (a)(2). Pub. L. 107-107 substituted ''milestone B'' for

''milestone II'' and ''system development and demonstration'' for

''engineering and manufacturing development''.

Subsec. (a)(4), (5). Pub. L. 107-107, Sec. 821(c)(1), substituted

''milestone B'' for ''milestone II''.

1996 - Subsec. (a)(5). Pub. L. 104-106, Sec. 4321(b)(13),

substituted ''this paragraph'' for ''the preceding sentence''.

Subsec. (c). Pub. L. 104-106, Sec. 1062(d), struck out ''(1)''

before ''With respect to'', redesignated subpars. (A) and (B) of

former par. (1) as pars. (1) and (2), respectively, and struck out

former par. (2) which read as follows: ''For each naval vessel

program and military satellite program, the Secretary of Defense

shall submit to Congress a report providing -

''(A) an explanation of the rate and quantity prescribed for

low-rate initial production and the considerations in

establishing that rate and quantity;

''(B) a test and evaluation master plan for that program; and

''(C) an acquisition strategy for that program that has been

approved by the Secretary, to include the procurement objectives

in terms of total quantity of articles to be procured and annual

production rates.''

1994 - Subsec. (a)(2). Pub. L. 103-355, Sec. 3015(1), substituted

''this section'' for ''paragraph (1)'' and ''engineering and

manufacturing development'' for ''full-scale engineering

development''.

Subsec. (a)(4). Pub. L. 103-355, Sec. 3015(2), (3), added par.

(4) and redesignated former par. (4) as (5).

Subsec. (a)(5). Pub. L. 103-355, Sec. 3015(2), redesignated par.

(4) as (5) and inserted after first sentence ''If the quantity

exceeds 10 percent of the total number of articles to be produced,

as determined at the milestone II decision with respect to that

system, the Secretary shall include in the statement the reasons

for such quantity.''

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by section

4321(b)(13) of Pub. L. 104-106, see section 4401 of Pub. L.

104-106, set out as a note under section 251 of Title 41, Public

Contracts.

-CITE-

10 USC Sec. 2401 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2401. Requirement for authorization by law of certain

contracts relating to vessels and aircraft

-STATUTE-

(a)(1) The Secretary of a military department may make a contract

for the lease of a vessel or aircraft or for the provision of a

service through use by a contractor of a vessel or aircraft only as

provided in subsection (b) if -

(A) the contract will be a long-term lease or charter; or

(B) the terms of the contract provide for a substantial

termination liability on the part of the United States.

(2) The Secretary of a military department may make a contract

that is an agreement to lease or charter or an agreement to provide

services and that is (or will be) accompanied by a contract for the

actual lease, charter, or provision of services only as provided in

subsection (b) if the contract for the actual lease, charter, or

provision of services is (or will be) a contract described in

paragraph (1).

(b)(1) The Secretary may make a contract described in subsection

(a)(1) if -

(A) the Secretary has been specifically authorized by law to

make the contract;

(B) before a solicitation for proposals for the contract was

issued the Secretary notified the Committee on Armed Services and

the Committee on Appropriations of the Senate and the Committee

on Armed Services and the Committee on Appropriations of the

House of Representatives of the Secretary's intention to issue

such a solicitation; and

(C) the Secretary has notified those committees of the proposed

contract and provided a detailed description of the terms of the

proposed contract and a justification for entering into the

proposed contract rather than providing for the lease, charter,

or services involved through purchase of the vessel or aircraft

to be used under the contract, and a period of 30 days of

continuous session of Congress has expired following the date on

which notice was received by such committees.

(2) For purposes of paragraph (1)(C), the continuity of a session

of Congress is broken only by an adjournment of the Congress sine

die, and the days on which either House is not in session because

of an adjournment of more than three days to a day certain are

excluded in a computation of such 30-day period.

(c)(1) Funds may not be appropriated for any fiscal year to or

for any armed force or obligated or expended for -

(A) the long-term lease or charter of any aircraft or naval

vessel; or

(B) for the lease or charter of any aircraft or naval vessel

the terms of which provide for a substantial termination

liability on the part of the United States,

unless funds for that purpose have been specifically authorized by

law.

(2) Funds appropriated to the Department of Defense may not be

used to indemnify any person under the terms of a contract entered

into under this section -

(A) for any amount paid or due by any person to the United

States for any liability arising under the Internal Revenue Code

of 1986; or

(B) to pay any attorneys' fees in connection with such

contract.

(d)(1)(A) In this section, the term ''long-term lease or

charter'' (except as provided in subparagraph (B)) means a lease,

charter, service contract, or conditional sale agreement -

(i) the term of which is for a period of five years or longer

or more than one-half the useful life of the vessel or aircraft;

or

(ii) the initial term of which is for a period of less than

five years but which contains an option to renew or extend the

agreement for a period which, when added to the initial term (or

any previous renewal or extension), is five years or longer.

Such term includes the extension or renewal of a lease or charter

agreement if the term of the extension or renewal thereof is for a

period of five years or longer or if the term of the lease or

charter agreement being extended or renewed was for a period of

five years or longer.

(B) In the case of an agreement under which the lessor first

places the property in service under the agreement or the property

has been in service for less than one year and there is allowable

to the lessor or charterer an investment tax credit or depreciation

for the property leased, chartered, or otherwise provided under the

agreement under section 168 of the Internal Revenue Code of 1986

(unless the lessor or charterer has elected depreciation on a

straightline method for such property), the term ''long-term lease

or charter'' means a lease, charter, service contract, or

conditional sale agreement -

(i) the term of which is for a period of three years or longer;

or

(ii) the initial term of which is for a period of less than

three years but which contains an option to renew or extend the

agreement for a period which, when added to the initial term (or

any previous renewal or extension), is three years or longer.

Such term includes the extension or renewal of a lease or charter

agreement if the term of the extension or renewal thereof is for a

period of three years or longer or if the term of the lease or

charter agreement being extended or renewed was for a period of

three years or longer.

(2) For the purposes of this section, the United States shall be

considered to have a substantial termination liability under a

contract -

(A) if there is an agreement by the United States under the

contract to pay an amount not less than the amount equal to 25

percent of the value of the vessel or aircraft under lease or

charter, calculated on the basis of the present value of the

termination liability of the United States under such charter or

lease (as determined under regulations prescribed by the

Secretary of Defense); or

(B) if (as determined under regulations prescribed by the

Secretary of Defense) the sum of -

(i) the present value of the amount of the termination

liability of the United States under the contract as of the end

of the term of the contract (exclusive of any option to extend

the contract); and

(ii) the present value of the total of the payments to be

made by the United States under the contract (excluding any

option to extend the contract) attributable to capital-hire,

is more than one-half the price of the vessel or aircraft

involved.

(e)(1) Whenever a request is submitted to Congress for the

authorization of the long-term lease or charter of aircraft or

naval vessels or for the authorization of a lease or charter of

aircraft or naval vessels which provides for a substantial

termination liability on the part of the United States, the

Secretary of Defense shall submit with that request an analysis of

the cost to the United States (including lost tax revenues) of any

such lease or charter arrangement compared with the cost to the

United States of direct procurement of the aircraft or naval

vessels by the United States.

(2) Any such analysis shall be reviewed and evaluated by the

Director of the Office of Management and Budget and the Secretary

of the Treasury within 30 days after the date on which the request

and analysis are submitted to Congress. The Director and Secretary

shall conduct such review and evaluation on the basis of the

guidelines issued pursuant to subsection (f) and shall report to

Congress in writing on the results of their review and evaluation

at the earliest practicable date, but in no event more than 45 days

after the date on which the request and analysis are submitted to

the Congress.

(3) Whenever a request is submitted to Congress for the

authorization of funds for the Department of Defense for the

long-term lease or charter of aircraft or naval vessels authorized

under this section, the Secretary of Defense -

(A) shall indicate in the request what portion of the requested

funds is attributable to capital-hire; and

(B) shall reflect such portion in the appropriate procurement

account in the request.

(f) 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 and naval vessels

rather than directly procuring such aircraft and vessels.

-SOURCE-

(Added Pub. L. 98-94, title XII, Sec. 1202(a)(1), Sept. 24, 1983,

97 Stat. 679; amended Pub. L. 98-525, title XII, Sec. 1232(a), Oct.

19, 1984, 98 Stat. 2600; Pub. L. 100-26, Sec. 7(h)(1), Apr. 21,

1987, 101 Stat. 282; Pub. L. 103-35, title II, Sec. 201(c)(6), May

31, 1993, 107 Stat. 98; Pub. L. 104-106, div. A, title XV, Sec.

1502(a)(20), 1503(a)(21), Feb. 10, 1996, 110 Stat. 504, 512; Pub.

L. 106-65, div. A, title X, Sec. 1067(1), Oct. 5, 1999, 113 Stat.

774; Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec. 1087(a)(13)),

Oct. 30, 2000, 114 Stat. 1654, 1654A-291.)

-REFTEXT-

REFERENCES IN TEXT

The Internal Revenue Code of 1986, referred to in subsecs.

(c)(2)(A), (d)(1)(B), is classified generally to Title 26, Internal

Revenue Code. Section 168 of the Internal Revenue Code of 1986 is

classified to section 168 of Title 26.

-MISC2-

AMENDMENTS

2000 - Subsec. (b)(1)(B). Pub. L. 106-398 substituted ''Committee

on Appropriations of the House'' for ''Committees on Appropriations

of the House''.

1999 - Subsec. (b)(1)(B). Pub. L. 106-65 substituted ''and the

Committee on Armed Services'' for ''and the Committee on National

Security''.

1996 - Subsec. (b)(1)(B). Pub. L. 104-106, Sec. 1502(a)(20)(A),

substituted ''the Committee on Armed Services and the Committee on

Appropriations of the Senate and the Committee on National Security

and the Committees on Appropriations of the'' for ''the Committees

on Armed Services and on Appropriations of the Senate and''.

Subsec. (b)(1)(C). Pub. L. 104-106, Sec. 1502(a)(20)(B),

substituted ''those committees'' for ''the Committees on Armed

Services and on Appropriations of the Senate and House of

Representatives''.

Subsec. (c)(2). Pub. L. 104-106, Sec. 1503(a)(21), struck out

''pursuant to an authorization contained in the Department of

Defense Authorization Act, 1984 (Public Law 98-94), or in any other

law enacted after September 24, 1983,'' before ''may not be used''.

1993 - Subsec. (c)(2)(A). Pub. L. 103-35 substituted ''Internal

Revenue Code of 1986'' for ''Internal Revenue Code of 1954''.

1987 - Subsec. (d)(1)(B). Pub. L. 100-26 substituted ''Internal

Revenue Code of 1986'' for ''Internal Revenue Code of 1954''.

1984 - Subsec. (c). Pub. L. 98-525, Sec. 1232(a)(1), designated

existing provisions as par. (1), redesignated as cls. (A) and (B)

former cls. (1) and (2), respectively, and added par. (2).

Subsec. (f). Pub. L. 98-525, Sec. 1232(a)(2), struck out at end

''Such guidelines shall be issued not later than 90 days after the

date of enactment of this section (Sept. 24, 1983).''

EFFECTIVE DATE

Section 1202(a)(3) of Pub. L. 98-94 provided that: ''Section 2401

of title 10, United States Code, as added by paragraph (1), shall

not apply in the case of any lease or charter agreement entered

into by the Department of Defense before December 1, 1983.''

LONG-TERM LEASE OR CHARTER AUTHORITY FOR CERTAIN DOUBLE-HULL

TANKERS AND OCEANOGRAPHIC VESSELS

Pub. L. 103-160, div. A, title I, Sec. 126, Nov. 30, 1993, 107

Stat. 1567, as amended by Pub. L. 104-106, div. D, title XLIII,

Sec. 4321(i)(1)(A), Feb. 10, 1996, 110 Stat. 676, provided that:

''(a) Authority. - The Secretary of the Navy may enter into a

long-term lease or charter for any double-hull tanker or

oceanographic vessel constructed in a United States shipyard after

the date of the enactment of this Act (Nov. 30, 1993) using

assistance provided under the National Shipbuilding Initiative.

''(b) Conditions on Obligation of Funds. - Unless budget

authority is specifically provided in an appropriations Act for the

lease or charter of vessels pursuant to subsection (a), the

Secretary may not enter into a contract for a lease or charter

pursuant to that subsection unless the contract includes the

following provisions:

''(1) A statement that the obligation of the United States to

make payments under the contract in any fiscal year is subject to

appropriations being provided specifically for that fiscal year

and specifically for that lease or charter or that kind of vessel

lease or charter.

''(2) A commitment to obligate the necessary amount for each

fiscal year covered by the contract when and to the extent that

funds are appropriated for that lease or charter, or that kind of

lease or charter, for that fiscal year.

''(3) A statement that such a commitment given under paragraph

(2) does not constitute an obligation of the United States.

''(c) Inapplicability of Certain Laws. - A long-term lease or

charter authorized by subsection (a) may be entered into without

regard to the provisions of section 2401 or 2401a of title 10,

United States Code.

''(d) Definition. - For purposes of subsection (a), the term

'long-term lease or charter' has the meaning given that term in

subparagraph (A) of section 2401(d)(1) of title 10, United States

Code.''

LIMITATION ON USE OF FUNDS FOR CONTRACTS FOR LEASE OR CHARTER OF

ANY VESSEL, AIRCRAFT, OR VEHICLES

Pub. L. 101-165, title IX, Sec. 9081, Nov. 21, 1989, 103 Stat.

1147, directed that no funds available to Department of Defense

could be used to enter into any contract with term of eighteen

months or more or to extend or renew any contract for term of

eighteen months or more, for any vessel, aircraft, or vehicle,

through lease, charter, or similar agreement without previously

having been submitted to Committees on Appropriations, with further

requirement with respect to contractual agreements which imposed

certain termination liability on Government, prior to repeal by

Pub. L. 103-355, title III, Sec. 3065(b), Oct. 13, 1994, 108 Stat.

3337. See section 2401a of this title.

ISSUANCE OF GUIDELINES

Section 1232(a)(2) of Pub. L. 98-525 provided in part that

guidelines required to be issued under subsec. (f) of this section

shall be issued not later than Oct. 31, 1984.

LIMITATION ON FUNDS AVAILABLE TO DEPARTMENT OF DEFENSE TO ENTER

INTO CONTRACTS DURING FISCAL YEAR 1984

Section 1202(d) of Pub. L. 98-94 provided that: ''Funds available

to the Department of Defense may not be used to enter into any

contract during fiscal year 1984 under section 2401 of title 10,

United States Code, as added by subsection (a), the term of which

is for 3 years or more, inclusive of any option for contract

extension or renewal, for any vessels, aircraft, or vehicles,

through a lease, charter, or similar agreement, that imposes an

estimated termination liability (excluding the estimated value of

the leased item at the time of termination) on the United States

exceeding 50 percent of the original purchase value of the vessel,

aircraft, or vehicle involved for which the Congress has not

specifically provided budget authority for the obligation of 10

percent of such termination liability.''

LIMITATION ON USE OF FUNDS APPROPRIATED PURSUANT TO AUTHORIZATIONS

CONTAINED IN DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1984

Section 1202(b) of Pub. L. 98-94, as amended by Pub. L. 99-514,

Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''Funds

appropriated pursuant to an authorization contained in this Act may

not be used to indemnify any person under the terms of a contract

entered into with the United States under section 2401 of title 10,

United States Code (as added by subsection (a)) -

''(1) for any amount paid or due by any person to the United

States for any liability arising under the Internal Revenue Code

of 1986 (Title 26, Internal Revenue Code); or

''(2) to pay any attorneys' fees in connection with such

contract.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7233 of this title.

-CITE-

10 USC Sec. 2401a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2401a. Lease of vehicles, equipment, vessels, and aircraft

-STATUTE-

(a) Leasing of Commercial Vehicles and Equipment. - The Secretary

of Defense may use leasing in the acquisition of commercial

vehicles and equipment whenever the Secretary determines that such

leasing is practicable and efficient.

(b) Limitation on Contracts With Terms of 18 Months or More. -

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.

-SOURCE-

(Added Pub. L. 103-355, title III, Sec. 3065(a)(1), Oct. 13, 1994,

108 Stat. 3337; amended Pub. L. 104-106, div. A, title VIII, Sec.

807(a)(1), Feb. 10, 1996, 110 Stat. 391; Pub. L. 105-85, div. A,

title X, Sec. 1073(a)(52), Nov. 18, 1997, 111 Stat. 1903.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in subsec. (b) were contained in Pub.

L. 101-165, title IX, Sec. 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, Sec. 3065(b).

A prior section 2401a was renumbered section 2350f of this title.

AMENDMENTS

1997 - Subsec. (a). Pub. L. 105-85 substituted ''such leasing''

for ''leasing of such vehicles''.

1996 - Pub. L. 104-106 substituted ''Lease of vehicles,

equipment, vessels, and aircraft'' for ''Lease of vessels,

aircraft, and vehicles'' as section catchline, designated existing

text as subsec. (b), inserted subsec. (b) heading, and added

subsec. (a).

LEASES FOR TANKER AIRCRAFT UNDER MULTIYEAR AIRCRAFT-LEASE PILOT

PROGRAM

Pub. L. 107-314, div. A, title I, Sec. 133, Dec. 2, 2002, 116

Stat. 2477, provided that: ''The Secretary of the Air Force may not

enter into a lease for the acquisition of tanker aircraft for the

Air Force under section 8159 of the Department of Defense

Appropriations Act, 2002 (division A of Public Law 107-117; 115

Stat. 2284; 10 U.S.C. 2401a note) until -

''(1) the Secretary submits the report specified in subsection

(c)(6) of such section; and

''(2) either -

''(A) authorization and appropriation of funds necessary to

enter into such lease are provided by law; or

''(B) a new start reprogramming notification for the funds

necessary to enter into such lease has been submitted in

accordance with established procedures.''

MULTI-YEAR AIRCRAFT LEASE PILOT PROGRAM

Pub. L. 107-206, title I, Sec. 308, Aug. 2, 2002, 116 Stat. 841,

provided that: ''During the current fiscal year and hereafter,

section 2533a of title 10, United States Code, shall not apply to

any transaction entered into to acquire or sustain aircraft under

the authority of section 8159 of the Department of Defense

Appropriations Act, 2002 (division A of Public Law 107-117; 115

Stat. 2284) (set out below).''

Pub. L. 107-117, div. A, title VIII, Sec. 8159, Jan. 10, 2002,

115 Stat. 2284, as amended by Pub. L. 107-248, title VIII, Sec.

8117, Oct. 23, 2002, 116 Stat. 1564, provided that:

''(a) The Secretary of the Air Force may, from funds provided in

this Act (see Tables for classification) or any future

appropriations Act, establish and make payments on a multi-year

pilot program for leasing general purpose Boeing 767 aircraft and

Boeing 737 aircraft in commercial configuration.

''(b) Sections 2401 and 2401a of title 10, United States Code,

shall not apply to any aircraft lease authorized by this section.

''(c) Under the aircraft lease Pilot Program authorized by this

section:

''(1) The Secretary may include terms and conditions in lease

agreements that are customary in aircraft leases by a

non-Government lessor to a non-Government lessee, but only those

that are not inconsistent with any of the terms and conditions

mandated herein. Notwithstanding the provisions of Section 3324

of Title 31, United States Code, payment for the acquisition of

leasehold interests under this section may be made for each

annual term up to one year in advance.

''(2) The term of any individual lease agreement into which the

Secretary enters under this section shall not exceed 10 years,

inclusive of any options to renew or extend the initial lease

term.

''(3) The Secretary may provide for special payments in a

lessor if the Secretary terminates or cancels the lease prior to

the expiration of its term. Such special payments shall not

exceed an amount equal to the value of 1 year's lease payment

under the lease.

''(4) Subchapter IV of chapter 15 of title 31, United States

Code shall apply to the lease transactions under this section,

except that the limitation in section 1553(b)(2) shall not apply.

''(5) The Secretary shall lease aircraft under terms and

conditions consistent with this section and consistent with the

criteria for an operating lease as defined in OMB Circular A-11,

as in effect at the time of the lease.

''(6) Lease arrangements authorized by this section may not

commence until:

''(A) The Secretary submits a report to the congressional

defense committees (Committees on Armed Services of the Senate

and House of Representatives and Subcommittees on Defense of

the Committees on Appropriations of the Senate and House of

Representatives) outlining the plans for implementing the Pilot

Program. The report shall describe the terms and conditions of

proposed contracts and describe the expected savings, if any,

comparing total costs, including operation, support,

acquisition, and financing, of the lease, including

modification, with the outright purchase of the aircraft as

modified.

''(B) A period of not less than 30 calendar days has elapsed

after submitting the report.

''(7) Not later than 1 year after the date on which the first

aircraft is delivered under this Pilot Program, and yearly

thereafter on the anniversary of the first delivery, the

Secretary shall submit a report to the congressional defense

committees describing the status of the Pilot Program. The Report

will be based on at least 6 months of experience in operating the

Pilot Program.

''(8) The Air Force shall accept delivery of the aircraft in a

general purpose configuration.

''(9) At the conclusion of the lease term, each aircraft

obtained under that lease may be returned to the contractor in

the same configuration in which the aircraft was delivered.

''(10) The present value of the total payments over the

duration of each lease entered into under this authority shall

not exceed 90 percent of the fair market value of the aircraft

obtained under that lease.

''(d) No lease entered into under this authority shall provide

for -

''(1) the modification of the general purpose aircraft from the

commercial configuration, unless and until separate authority for

such conversion is enacted and only to the extent budget

authority is provided in advance in appropriations Acts for that

purpose; or

''(2) the purchase of the aircraft by, or the transfer of

ownership to, the Air Force.

''(e) The authority granted to the Secretary of the Air Force by

this section is separate from and in addition to, and shall not be

construed to impair or otherwise affect, the authority of the

Secretary to procure transportation or enter into leases under a

provision of law other than this section.

''(f) The authority provided under this section may be used to

lease not more than a total of 100 Boeing 767 aircraft and 4 Boeing

737 aircraft for the purposes specified herein.

''(g) Notwithstanding any other provision of law, any payments

required for a lease entered into under this Section, or any

payments made pursuant to subsection (c)(3) above, may be made from

appropriations available for operation and maintenance or for lease

or procurement of aircraft at the time that the lease takes effect;

appropriations available for operation and maintenance or for lease

or procurement of aircraft at the time that the payment is due; or

funds appropriated for those payments.''

Pub. L. 106-79, title VIII, Sec. 8133, Oct. 25, 1999, 113 Stat.

1267, provided that:

''(a) The Secretary of the Air Force may establish a multi-year

pilot program for leasing aircraft for operational support

purposes, including transportation for the combatant Commanders in

Chief, on such terms and conditions as the Secretary may deem

appropriate, consistent with this section.

''(b) Sections 2401 and 2401a of title 10, United States Code,

shall not apply to any aircraft lease authorized by this section.

''(c) Under the aircraft lease Pilot Program authorized by this

section:

''(1) The Secretary may include terms and conditions in lease

agreements that are customary in aircraft leases by a

non-Government lessor to a non-Government lessee.

''(2) The term of any individual lease agreement into which the

Secretary enters under this section shall not exceed 10 years.

''(3) The Secretary may provide for special payments to a

lessor if either the Secretary terminates or cancels the lease

prior to the expiration of its term or aircraft are damaged or

destroyed prior to the expiration of the term of the lease. Such

special payments shall not exceed an amount equal to the value of

one year's lease payment under the lease. The amount of special

payments shall be subject to negotiation between the Air Force

and lessors.

''(4) Notwithstanding any other provision of law, any payments

required under a lease under this section, and any payments made

pursuant to subsection (3) above may be made from:

''(A) appropriations available for the performance of the

lease at the time the lease takes effect;

''(B) appropriations for the operation and maintenance

available at the time which the payment is due; and

''(C) funds appropriated for those payments.

''(5) The Secretary may lease aircraft, on such terms and

conditions as the Secretary may deem appropriate, consistent with

this section, through an operating lease consistent with OMB

Circular A-11.

''(6) The Secretary may exchange or sell existing aircraft and

apply the exchange allowance or sale proceeds in whole or in part

toward the cost of leasing replacement aircraft under this

section.

''(7) Lease arrangements authorized by this section may not

commence until:

''(A) The Secretary submits a report to the congressional

defense committees (Committees on Armed Services and

Subcommittees on Defense of the Committees on Appropriations of

the Senate and the House of Representatives) outlining the

plans for implementing the Pilot Program. The report shall

describe the terms and conditions of proposed contracts and the

savings in operations and support costs expected to be derived

from retiring older aircraft as compared to the expected cost

of leasing newer replacement aircraft.

''(B) A period of not less than 30 calendar days has elapsed

after submitting the report.

''(8) Not later than 1 year after the date on which the first

aircraft is delivered under this Pilot Program, and yearly

thereafter on the anniversary of the first delivery, the

Secretary shall submit a report to the congressional defense

committees describing the status of the Pilot Program. The Report

will be based on at least 6 months of experience in operating the

Pilot Program.

''(9) No lease of operational support aircraft may be entered

into under this section after September 30, 2004.

''(d) The authority granted to the Secretary of the Air Force by

this section is separate from and in addition to, and shall not be

construed to impair or otherwise affect, the authority of the

Secretary to procure transportation or enter into leases under a

provision of law other than this section.

''(e) The authority provided under this section may be used to

lease not more than a total of six aircraft for the purposes of

providing operational support.''

LEASE OF FIREFIGHTING, CRASH RESCUE, AND SNOW REMOVAL EQUIPMENT

Pub. L. 105-262, title VIII, Sec. 8126, Oct. 17, 1998, 112 Stat.

2333, provided that:

''(a) The Secretary of the Army and the Secretary of the Air

Force may each enter into one or more multiyear leases of

nontactical firefighting equipment, nontactical crash rescue

equipment, or nontactical snow removal equipment. The period of a

lease entered into under this section shall be for any period not

in excess of 10 years. Any such lease shall provide that

performance under the lease during the second and subsequent years

of the contract is contingent upon the appropriation of funds and

shall provide for a cancellation payment to be made to the lessor

if such appropriations are not made.

''(b) Lease payments made under subsection (a) shall be made from

amounts provided in this or future appropriations Acts.

''(c) This section is effective for all fiscal years beginning

after September 30, 1998.''

PILOT PROGRAM FOR LEASING COMMERCIAL UTILITY CARGO VEHICLES

Section 807(c) of Pub. L. 104-106, as amended by Pub. L. 106-65,

div. A, title X, Sec. 1067(6), Oct. 5, 1999, 113 Stat. 774,

provided that:

''(1) The Secretary of the Army may conduct a pilot program for

leasing commercial utility cargo vehicles in accordance with this

subsection.

''(2) Under the pilot program -

''(A) the Secretary may trade existing commercial utility cargo

vehicles of the Army for credit against the costs of leasing new

replacement commercial utility cargo vehicles for the Army;

''(B) the quantities and trade-in value of commercial utility

cargo vehicles to be traded in shall be subject to negotiation

between the Secretary and the lessors of the new replacement

commercial utility cargo vehicles;

''(C) the lease agreement for a new commercial utility cargo

vehicle may be executed with or without an option to purchase at

the end of the lease period;

''(D) the lease period for a new commercial utility cargo

vehicle may not exceed the warranty period for the vehicle; and

''(E) up to 40 percent of the validated requirement for

commercial utility cargo vehicles may be satisfied by leasing

such vehicles, except that one or more options for satisfying the

remainder of the validated requirement may be provided for and

exercised (subject to the requirements of paragraph (6)).

''(3) In awarding contracts under the pilot program, the

Secretary shall comply with section 2304 of title 10, United States

Code.

''(4) The pilot program may not be commenced until -

''(A) the Secretary submits to the Committee on Armed Services

of the Senate and the Committee on Armed Services of the House of

Representatives a report that contains the plans of the Secretary

for implementing the program and that sets forth in detail the

savings in operating and support costs expected to be derived

from retiring older commercial utility cargo vehicles, as

compared to the expected costs of leasing newer commercial

utility cargo vehicles; and

''(B) a period of 30 calendar days has elapsed after submission

of such report.

''(5) Not later than one year after the date on which the first

lease under the pilot program is entered into, the Secretary of the

Army shall submit to the Committee on Armed Services of the Senate

and the Committee on Armed Services of the House of Representatives

a report on the status of the pilot program. Such report shall be

based on at least six months of experience in operating the pilot

program.

''(6) The Secretary may exercise an option provided for under

paragraph (2) only after a period of 60 days has elapsed after the

submission of the report.

''(7) No lease of commercial utility cargo vehicles may be

entered into under the pilot program after September 30, 2000.''

-CITE-

10 USC Sec. 2402 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2402. Prohibition of contractors limiting subcontractor sales

directly to the United States

-STATUTE-

(a) Each contract for the purchase of supplies or services made

by the Department of Defense shall provide that the contractor will

not -

(1) enter into any agreement with a subcontractor under the

contract that has the effect of unreasonably restricting sales by

the subcontractor directly to the United States of any item or

process (including computer software) made or furnished by the

subcontractor under the contract (or any follow-on production

contract); or

(2) otherwise act to restrict unreasonably the ability of a

subcontractor to make sales to the United States described in

clause (1).

(b) This section does not prohibit a contractor from asserting

rights it otherwise has under law.

(c) This section does not apply to a contract that is for an

amount not greater than the simplified acquisition threshold (as

defined in section 4(11) of the Office of Federal Procurement

Policy Act (41 U.S.C. 403(11))).

(d)(1) An agreement between the contractor in a contract for the

acquisition of commercial items and a subcontractor under such

contract that restricts sales by such subcontractor directly to

persons other than the contractor may not be considered to

unreasonably restrict sales by that subcontractor to the United

States in violation of the provision included in such contract

pursuant to subsection (a) if the agreement does not result in the

United States being treated differently with regard to the

restriction than any other prospective purchaser of such commercial

items from that subcontractor.

(2) In paragraph (1), the term ''commercial item'' has the

meaning given such term in section 4(12) of the Office of Federal

Procurement Policy Act (41 U.S.C. 403(12)).

-SOURCE-

(Added Pub. L. 98-525, title XII, Sec. 1234(a), Oct. 19, 1984, 98

Stat. 2601; amended Pub. L. 103-355, title IV, Sec. 4102(f), title

VIII, Sec. 8105(g), Oct. 13, 1994, 108 Stat. 3340, 3392.)

-MISC1-

AMENDMENTS

1994 - Subsecs. (c), (d). Pub. L. 103-355 added subsecs. (c) and

(d).

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE

Section 1234(c) of Pub. L. 98-525 provided that: ''Section 2402

of title 10, United States Code (as added by subsection (a)), shall

take effect at the end of the 180-day period beginning on the date

of the enactment of this Act (Oct. 19, 1984).''

-CITE-

10 USC Sec. 2403 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2403. Repealed. Pub. L. 105-85, div. A, title VIII, Sec.

847(a), Nov. 18, 1997, 111 Stat. 1845)

-MISC1-

Section, added Pub. L. 98-525, title XII, Sec. 1234(a), Oct. 19,

1984, 98 Stat. 2601; amended Pub. L. 99-433, title I, Sec.

110(g)(5), Oct. 1, 1986, 100 Stat. 1004; Pub. L. 100-26, Sec.

7(k)(2), Apr. 21, 1987, 101 Stat. 284; Pub. L. 103-355, title II,

Sec. 2402, Oct. 13, 1994, 108 Stat. 3324; Pub. L. 104-106, div. A,

title XV, Sec. 1502(a)(21), Feb. 10, 1996, 110 Stat. 505, related

to major weapon systems and contractor guarantees.

-CITE-

10 USC Sec. 2404 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2404. Acquisition of certain fuel sources: authority to waive

contract procedures; acquisition by exchange; sales authority

-STATUTE-

(a) Waiver Authority. - The Secretary of Defense may, for any

purchase of a defined fuel source, waive the application of any

provision of law prescribing procedures to be followed in the

formation of contracts, prescribing terms and conditions to be

included in contracts, or regulating the performance of contracts

if the Secretary determines -

(1) that market conditions for the defined fuel source have

adversely affected (or will in the near future adversely affect)

the acquisition of that defined fuel source by the Department of

Defense; and

(2) the waiver will expedite or facilitate the acquisition of

that defined fuel source for Government needs.

(b) Scope of Waiver. - A waiver under subsection (a) may be made

with respect to a particular contract or with respect to classes of

contracts. Such a waiver that is applicable to a contract for the

purchase of a defined fuel source may also be made applicable to a

subcontract under that contract.

(c) Exchange Authority. - The Secretary of Defense may acquire a

defined fuel source or services related to a defined fuel source by

exchange of a defined fuel source or services related to a defined

fuel source.

(d) Authority To Sell. - The Secretary of Defense may sell a

defined fuel source of the Department of Defense if the Secretary

determines that the sale would be in the public interest. The

proceeds of such a sale shall be credited to appropriations of the

Department of Defense for the acquisition of a defined fuel source

or services related to a defined fuel source. Amounts so credited

shall be available for obligation for the same period as the

appropriations to which the amounts are credited.

(e) Petroleum Defined. - In this section, the term ''petroleum''

means natural or synthetic crude, blends of natural or synthetic

crude, and products refined or derived from natural or synthetic

crude or from such blends.

(f) Defined Fuel Sources. - In this section, the term ''defined

fuel source'' means any of the following:

(1) Petroleum.

(2) Natural gas.

(3) Coal.

(4) Coke.

-SOURCE-

(Added Pub. L. 98-525, title XII, Sec. 1234(a), Oct. 19, 1984, 98

Stat. 2604; amended Pub. L. 100-26, Sec. 7(k)(3), Apr. 21, 1987,

101 Stat. 284; Pub. L. 101-510, div. A, title XIII, Sec.

1322(a)(8), Nov. 5, 1990, 104 Stat. 1671; Pub. L. 103-160, div. A,

title VIII, Sec. 826, Nov. 30, 1993, 107 Stat. 1711; Pub. L.

106-65, div. A, title VIII, Sec. 803(a), (b)(1), Oct. 5, 1999, 113

Stat. 703.)

-MISC1-

AMENDMENTS

1999 - Pub. L. 106-65, Sec. 803(b)(1), substituted ''Acquisition

of certain fuel sources'' for ''Acquisition of petroleum and

natural gas'' in section catchline.

Subsec. (a). Pub. L. 106-65, Sec. 803(a)(1), substituted ''a

defined fuel source'' for ''petroleum or natural gas'' in

introductory provisions, ''market conditions for the defined fuel

source'' for ''petroleum market conditions or natural gas market

conditions, as the case may be,'' and ''acquisition of that defined

fuel source'' for ''acquisition of petroleum or acquisition of

natural gas, respectively,'' in par. (1), and ''that defined fuel

source'' for ''petroleum or natural gas, as the case may be,'' in

par. (2).

Subsec. (b). Pub. L. 106-65, Sec. 803(a)(2), substituted ''a

defined fuel source'' for ''petroleum or natural gas'' in second

sentence.

Subsec. (c). Pub. L. 106-65, Sec. 803(a)(3), which directed the

substitution of ''a defined fuel source or services related to a

defined fuel source by exchange of a defined fuel source or

services related to a defined fuel source.'' for '' 'petroleum' and

all that follows through the period'', was executed by substituting

the material for ''petroleum, petroleum-related services, natural

gas, or natural gas-related services by exchange of petroleum,

petroleum-related services, natural gas, or natural gas-related

services.'' to reflect the probable intent of Congress.

Subsec. (d). Pub. L. 106-65, Sec. 803(a)(4), substituted ''a

defined fuel source'' for ''petroleum or natural gas'' in first

sentence and ''a defined fuel source or services related to a

defined fuel source.'' for ''petroleum, petroleum-related services,

natural gas, or natural gas-related services.'' in second sentence.

Subsec. (f). Pub. L. 106-65, Sec. 803(a)(5), added subsec. (f).

1993 - Pub. L. 103-160, Sec. 826(d)(2), substituted ''petroleum

and natural gas: authority to waive contract procedures;

acquisition by exchange; sales authority'' for ''petroleum:

authority to waive contract procedures'' as section catchline.

Subsec. (a). Pub. L. 103-160, Sec. 826(a)(1), (d)(1)(A), inserted

heading, inserted ''or natural gas'' after ''petroleum'' in

introductory provisions, inserted ''or natural gas market

conditions, as the case may be,'' after ''petroleum market

conditions'' and ''or acquisition of natural gas, respectively,''

after ''acquisition of petroleum'' in par. (1), and inserted ''or

natural gas, as the case may be,'' after ''petroleum'' in par. (2).

Subsec. (b). Pub. L. 103-160, Sec. 826(a)(2), (d)(1)(B), inserted

heading and inserted ''or natural gas'' after ''petroleum'' in

second sentence.

Subsec. (c). Pub. L. 103-160, Sec. 826(b), amended subsec. (c)

generally. Prior to amendment, subsec. (c) read as follows: ''The

Secretary of Defense may acquire petroleum by exchange of petroleum

or petroleum derivatives.''

Subsec. (d). Pub. L. 103-160, Sec. 826(c)(2), added subsec. (d).

Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 103-160, Sec. 826(c)(1), (d)(1)(C),

redesignated subsec. (d) as (e) and inserted heading.

1990 - Subsecs. (d), (e). Pub. L. 101-510 redesignated subsec.

(e) as (d) and struck out former subsec. (d) which read as follows:

''The Secretary of Defense shall notify the Congress within 10 days

of the date on which any waiver is made under this section and of

the reasons for the necessity of exercising such waiver.''

1987 - Subsec. (e). Pub. L. 100-26 inserted ''the term'' after

''In this section,''.

-CITE-

10 USC Sec. 2405 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2405. Repealed. Pub. L. 105-85, div. A, title VIII, Sec.

810(a)(1), Nov. 18, 1997, 111 Stat. 1839)

-MISC1-

Section, added Pub. L. 98-525, title XII, Sec. 1234(a), Oct. 19,

1984, 98 Stat. 2604; amended Pub. L. 102-484, div. A, title VIII,

Sec. 813(c), Oct. 23, 1992, 106 Stat. 2453; Pub. L. 103-355, title

II, Sec. 2302(a), (b), Oct. 13, 1994, 108 Stat. 3321; Pub. L.

104-106, div. D, title XLIII, Sec. 4321(b)(14), Feb. 10, 1996, 110

Stat. 673, related to limitation on adjustment of shipbuilding

contracts.

EFFECTIVE DATE OF REPEAL

Section 810(b) of Pub. L. 105-85 provided that:

''(1) Except as provided in paragraph (2), the repeal made by

subsection (a) (repealing this section) shall be effective with

respect to claims, requests for equitable adjustment, and demands

for payment under shipbuilding contracts that have been or are

submitted before, on, or after the date of the enactment of this

Act (Nov. 18, 1997).

''(2) Section 2405 of title 10, United States Code, as in effect

immediately before the date of the enactment of this Act, shall

continue to apply to a contractor's claim, request for equitable

adjustment, or demand for payment under a shipbuilding contract

that was submitted before such date if -

''(A) a contracting officer denied the claim, request, or

demand, and the period for appealing the decision to a court or

board under the Contract Disputes Act of 1978 (41 U.S.C. 601 et

seq.) expired before such date;

''(B) a court or board of contract appeals considering the

claim, request, or demand (including any appeal of a decision of

a contracting officer to deny the claim, request, or demand)

denied or dismissed the claim, request, or demand (or the

appeal), and the action of the court or board became final and

unappealable before such date; or

''(C) the contractor released or releases the claim, request,

or demand.''

-CITE-

10 USC Sec. 2406 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2406. Repealed. Pub. L. 103-355, title II, Sec. 2201(b)(1),

Oct. 13, 1994, 108 Stat. 3318)

-MISC1-

Section, added Pub. L. 99-145, title IX, Sec. 917(a), Nov. 8,

1985, 99 Stat. 689; amended Pub. L. 99-500, Sec. 101(c) (title X,

Sec. 943(a)(1)), Oct. 18, 1986, 100 Stat. 1783-82, 1783-162, and

Pub. L. 99-591, Sec. 101(c) (title X, Sec. 943(a)(1)), Oct. 30,

1986, 100 Stat. 3341-82, 3341-162; Pub. L. 99-661, div. A, title

IX, formerly title IV, Sec. 943(a)(1), Nov. 14, 1986, 100 Stat.

3942, renumbered title IX, Pub. L. 100-26, Sec. 3(5), Apr. 21,

1987, 101 Stat. 273; Pub. L. 100-180, div. A, title XII, Sec.

1231(13), Dec. 4, 1987, 101 Stat. 1160, required contractor under

covered contract with an agency to make cost and pricing data

available to agency in timely manner.

EFFECTIVE DATE OF REPEAL

For effective date and applicability of repeal, see section 10001

of Pub. L. 103-355, set out as an Effective Date of 1994 Amendment

note under section 251 of Title 41, Public Contracts.

-CITE-

10 USC Sec. 2407 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2407. Renumbered Sec. 2350b)

-MISC1-

NATO COOPERATIVE LOGISTIC SUPPORT AGREEMENTS

Section 1102 of Pub. L. 99-661, div. A, title XI, Sec. 1102,

Nov. 14, 1986, 100 Stat. 3961, which authorized Secretary of

Defense to enter Weapon System Partnership Agreements with one or

more governments of other member countries of NATO, was repealed by

Pub. L. 101-189, div. A, title IX, Sec. 931(d)(2), Nov. 29, 1989,

103 Stat. 1535. See section 2350d of this title.

NATO COOPERATIVE RESEARCH AND DEVELOPMENT

Section 1103 of Pub. L. 99-145, title XI, Sec. 1103, Nov. 8,

1985, 99 Stat. 712, which urged and requested member nations of

NATO to cooperate in research and development of defense equipment

and munitions and in the production of defense equipment, was

repealed by Pub. L. 101-189, div. A, title IX, Sec. 931(d)(1),

Nov. 29, 1989, 103 Stat. 1535. See section 2350a of this title.

AUTHORITY OF SECRETARY OF DEFENSE IN CONNECTION WITH NATO AWACS

PROGRAM

Pub. L. 97-86, title I, Sec. 103, Dec. 1, 1981, 95 Stat. 1100, as

amended by Pub. L. 97-252, title I, Sec. 106, Sept. 8, 1982, 96

Stat. 720; Pub. L. 98-94, title I, Sec. 105, Sept. 24, 1983, 97

Stat. 620; Pub. L. 98-525, title I, Sec. 106, Oct. 19, 1984, 98

Stat. 2503; Pub. L. 99-145, title I, Sec. 106(b), Nov. 8, 1985, 99

Stat. 596; Pub. L. 99-661, title I, Sec. 106, Nov. 14, 1986, 100

Stat. 3827; Pub. L. 100-180, title I, Sec. 109, Dec. 4, 1987, 101

Stat. 1036, which set forth authority of Secretary of Defense in

connection with NATO AWACS Program, was repealed by Pub. L.

101-189, div. A, title IX, Sec. 932(b), Nov. 29, 1989, 103 Stat.

1537. See section 2350e of this title. Similar provisions were

contained in the following prior authorization acts:

Pub. L. 96-342, title I, Sec. 103, Sept. 8, 1980, 94 Stat. 1078.

Pub. L. 96-107, title I, Sec. 104, Nov. 9, 1979, 93 Stat. 804.

-CITE-

10 USC Sec. 2408 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2408. Prohibition on persons convicted of defense-contract

related felonies and related criminal penalty on defense

contractors

-STATUTE-

(a) Prohibition. - (1) An individual who is convicted of fraud or

any other felony arising out of a contract with the Department of

Defense shall be prohibited from each of the following:

(A) Working in a management or supervisory capacity on any

defense contract or any first tier subcontract of a defense

contract.

(B) Serving on the board of directors of any defense contractor

or any subcontractor awarded a contract directly by a defense

contractor.

(C) Serving as a consultant to any defense contractor or any

subcontractor awarded a contract directly by a defense

contractor.

(D) Being involved in any other way, as determined under

regulations prescribed by the Secretary of Defense, with a

defense contract or first tier subcontract of a defense contract.

(2) Except as provided in paragraph (3), the prohibition in

paragraph (1) shall apply for a period, as determined by the

Secretary of Defense, of not less than five years after the date of

the conviction.

(3) The prohibition in paragraph (1) may apply with respect to an

individual for a period of less than five years if the Secretary

determines that the five-year period should be waived in the

interests of national security.

(4) The prohibition in paragraph (1) does not apply with respect

to the following:

(A) A contract referred to in subparagraph (A), (B), (C), or

(D) of such paragraph that is not greater than the simplified

acquisition threshold (as defined in section 4(11) of the Office

of Federal Procurement Policy Act (41 U.S.C. 403(11))).

(B) A contract referred to in such subparagraph that is for the

acquisition of commercial items (as defined in section 4(12) of

the Office of Federal Procurement Policy Act (41 U.S.C.

403(12))).

(C) A subcontract referred to in such subparagraph that is

under a contract described in subparagraph (A) or (B).

(b) Criminal Penalty. - A defense contractor or subcontractor

shall be subject to a criminal penalty of not more than $500,000 if

such contractor or subcontractor is convicted of knowingly -

(1) employing a person under a prohibition under subsection

(a); or

(2) allowing such a person to serve on the board of directors

of such contractor or subcontractor.

(c) Single Point of Contact for Information. - (1) The Attorney

General shall ensure that a single point of contact is established

to enable a defense contractor or subcontractor to promptly obtain

information regarding whether a person that the contractor or

subcontractor proposes to use for an activity covered by paragraph

(1) of subsection (a) is under a prohibition under that subsection.

(2) The procedure for obtaining such information shall be

specified in regulations prescribed by the Secretary of Defense

under subsection (a).

-SOURCE-

(Added Pub. L. 99-500, Sec. 101(c) (title X, Sec. 941(a)(1)), Oct.

18, 1986, 100 Stat. 1783-82, 1783-161, and Pub. L. 99-591, Sec.

101(c) (title X, Sec. 941(a)(1)), Oct. 30, 1986, 100 Stat. 3341-82,

3341-161; Pub. L. 99-661, div. A, title IX, formerly title IV,

Sec. 941(a)(1), Nov. 14, 1986, 100 Stat. 3941, renumbered title IX,

Pub. L. 100-26, Sec. 3(5), Apr. 21, 1987, 101 Stat. 273; amended

Pub. L. 100-456, div. A, title VIII, Sec. 831(a), Sept. 29, 1988,

102 Stat. 2023; Pub. L. 101-510, div. A, title VIII, Sec. 812,

Nov. 5, 1990, 104 Stat. 1596; Pub. L. 102-484, div. A, title VIII,

Sec. 815(a), Oct. 23, 1992, 106 Stat. 2454; Pub. L. 103-355, title

IV, Sec. 4102(g), title VIII, Sec. 8105(h), Oct. 13, 1994, 108

Stat. 3340, 3393; Pub. L. 104-106, div. A, title X, Sec. 1062(e),

Feb. 10, 1996, 110 Stat. 444.)

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

Pub. L. 99-500, Pub. L. 99-591, and Pub. L. 99-661 added

identical sections.

-MISC3-

AMENDMENTS

1996 - Subsec. (a)(3). Pub. L. 104-106 struck out at end ''If the

five-year period is waived, the Secretary shall submit to Congress

a report stating the reasons for the waiver.''

1994 - Subsec. (a)(4). Pub. L. 103-355, Sec. 4102(g), added

introductory provisions and subpar. (A).

Subsec. (a)(4)(B). Pub. L. 103-355, Sec. 8105(h)(1), added

subpar. (B).

Subsec. (a)(4)(C). Pub. L. 103-355, Sec. 8105(h)(2), inserted

''or (B)'' before period at end.

Pub. L. 103-355, Sec. 4102(g), added subpar. (C).

1992 - Subsec. (c). Pub. L. 102-484 added subsec. (c).

1990 - Subsec. (a)(1)(A). Pub. L. 101-510, Sec. 812(a)(1),

inserted before period at end ''or any first tier subcontract of a

defense contract''.

Subsec. (a)(1)(B). Pub. L. 101-510, Sec. 812(a)(2), inserted

before period at end ''or any subcontractor awarded a contract

directly by a defense contractor''.

Subsec. (a)(1)(C). Pub. L. 101-510, Sec. 812(a)(3), inserted

before period at end ''or any subcontractor awarded a contract

directly by a defense contractor''.

Subsec. (a)(1)(D). Pub. L. 101-510, Sec. 812(a)(4), inserted

before period at end ''or first tier subcontract of a defense

contract''.

Subsec. (b). Pub. L. 101-510, Sec. 812(b), inserted ''or

subcontractor'' after ''contractor'' wherever appearing.

1988 - Subsec. (a). Pub. L. 100-456 amended subsec. (a)

generally. Prior to amendment, subsec. (a) read as follows: ''A

person who is convicted of fraud or any other felony arising out of

a contract with the Department of Defense shall be prohibited from

working in a management or supervisory capacity on any defense

contract, or serving on the board of directors of any defense

contractor, for a period, as determined by the Secretary of

Defense, of not less than one year from the date of the

conviction.''

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 831(b) of Pub. L. 100-456 provided that: ''Section

2408(a) of title 10, United States Code, as amended by subsection

(a), shall apply with respect to individuals convicted after the

date of the enactment of this Act (Sept. 29, 1988).''

EFFECTIVE DATE

Section 101(c) (title X, Sec. 941(c)) of Pub. L. 99-500 and Pub.

L. 99-591, and section 941(c) of title IX, formerly title IV, of

Pub. L. 99-661, renumbered title IX, Pub. L. 100-26, Sec. 3(5),

Apr. 21, 1987, 101 Stat. 273, provided that: ''Section 2408 of

title 10, United States Code (as added by subsection (a)(1)), shall

apply with respect to employment or service on a board of directors

after the date of the enactment of this Act (Oct. 18, 1986).''

DEADLINE FOR SINGLE POINT OF CONTACT

Section 815(b) of Pub. L. 102-484 provided that: ''The single

point of contact required by section 2408(c) of title 10, United

States Code, as added by subsection (a), shall be established not

later than 120 days after the date of the enactment of this Act

(Oct. 23, 1992).''

-CITE-

10 USC Sec. 2409 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2409. Contractor employees: protection from reprisal for

disclosure of certain information

-STATUTE-

(a) Prohibition of Reprisals. - An employee of a contractor may

not be discharged, demoted, or otherwise discriminated against as a

reprisal for disclosing to a Member of Congress or an authorized

official of an agency or the Department of Justice information

relating to a substantial violation of law related to a contract

(including the competition for or negotiation of a contract).

(b) Investigation of Complaints. - A person who believes that the

person has been subjected to a reprisal prohibited by subsection

(a) may submit a complaint to the Inspector General of an agency.

Unless the Inspector General determines that the complaint is

frivolous, the Inspector General shall investigate the complaint

and, upon completion of such investigation, submit a report of the

findings of the investigation to the person, the contractor

concerned, and the head of the agency.

(c) Remedy and Enforcement Authority. - (1) If the head of the

agency determines that a contractor has subjected a person to a

reprisal prohibited by subsection (a), the head of the agency may

take one or more of the following actions:

(A) Order the contractor to take affirmative action to abate

the reprisal.

(B) Order the contractor to reinstate the person to the

position that the person held before the reprisal, together with

the compensation (including back pay), employment benefits, and

other terms and conditions of employment that would apply to the

person in that position if the reprisal had not been taken.

(C) Order the contractor to pay the complainant an amount equal

to the aggregate amount of all costs and expenses (including

attorneys' fees and expert witnesses' fees) that were reasonably

incurred by the complainant for, or in connection with, bringing

the complaint regarding the reprisal, as determined by the head

of the agency.

(2) Whenever a person fails to comply with an order issued under

paragraph (1), the head of the agency shall file an action for

enforcement of such order in the United States district court for a

district in which the reprisal was found to have occurred. In any

action brought under this paragraph, the court may grant

appropriate relief, including injunctive relief and compensatory

and exemplary damages.

(3) Any person adversely affected or aggrieved by an order issued

under paragraph (1) may obtain review of the order's conformance

with this subsection, and any regulations issued to carry out this

section, in the United States court of appeals for a circuit in

which the reprisal is alleged in the order to have occurred. No

petition seeking such review may be filed more than 60 days after

issuance of the order by the head of the agency. Review shall

conform to chapter 7 of title 5.

(d) Construction. - Nothing in this section may be construed to

authorize the discharge of, demotion of, or discrimination against

an employee for a disclosure other than a disclosure protected by

subsection (a) or to modify or derogate from a right or remedy

otherwise available to the employee.

(e) Definitions. - In this section:

(1) The term ''agency'' means an agency named in section 2303

of this title.

(2) The term ''head of an agency'' has the meaning provided by

section 2302(1) of this title.

(3) The term ''contract'' means a contract awarded by the head

of an agency.

(4) The term ''contractor'' means a person awarded a contract

with an agency.

(5) The term ''Inspector General'' means an Inspector General

appointed under the Inspector General Act of 1978.

-SOURCE-

(Added Pub. L. 99-500, Sec. 101(c) (title X, Sec. 942(a)(1)), Oct.

18, 1986, 100 Stat. 1783-82, 1783-162, and Pub. L. 99-591, Sec.

101(c) (title X, Sec. 942(a)(1)), Oct. 30, 1986, 100 Stat. 3341-82,

3341-162; Pub. L. 99-661, div. A, title IX, formerly title IV,

Sec. 942(a)(1), Nov. 14, 1986, 100 Stat. 3942, renumbered title IX,

Pub. L. 100-26, Sec. 3(5), Apr. 21, 1987, 101 Stat. 273; amended

Pub. L. 102-25, title VII, Sec. 701(k)(1), Apr. 6, 1991, 105 Stat.

116; Pub. L. 102-484, div. A, title X, Sec. 1052(30)(A), Oct. 23,

1992, 106 Stat. 2500; Pub. L. 103-355, title VI, Sec. 6005(a), Oct.

13, 1994, 108 Stat. 3364; Pub. L. 104-106, div. D, title XLIII,

Sec. 4321(a)(10), Feb. 10, 1996, 110 Stat. 671.)

-REFTEXT-

REFERENCES IN TEXT

The Inspector General Act of 1978, referred to in subsec. (e)(5),

is Pub. L. 95-452, Oct. 12, 1978, 92 Stat. 1101, as amended, which

is set out in the Appendix to Title 5, Government Organization and

Employees.

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

Pub. L. 99-500, Pub. L. 99-591, and Pub. L. 99-661 added

identical sections.

-MISC3-

AMENDMENTS

1996 - Pub. L. 104-106 made technical correction to Pub. L.

103-355, Sec. 6005(a). See 1994 Amendment note below.

1994 - Pub. L. 103-355, Sec. 6005(a), as amended by Pub. L.

104-106, amended section generally. Prior to amendment, subsec.

(a) related to prohibition of reprisals, subsec. (b) to

investigation of complaints, subsec. (c) to construction of

section, and subsec. (d) to coordination of section with former

section 2409a of this title.

1992 - Subsec. (d). Pub. L. 102-484 amended subsec. (d)

generally. Prior to amendment, subsec. (d) read as follows:

''Effective Date. - This section shall not be in effect during the

period when section 2409a of this title is in effect.''

1991 - Subsec. (d). Pub. L. 102-25 added subsec. (d).

EFFECTIVE DATE OF 1996 AMENDMENT

Section 4321(a) of Pub. L. 104-106 provided that the amendment

made by that section is effective as of Oct. 13, 1994, and as if

included in Pub. L. 103-355 as enacted.

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 1052(30)(B) of Pub. L. 102-484 provided that: ''The

amendment made by subparagraph (A) (amending this section) shall

take effect as if enacted immediately following the enactment of

Public Law 102-25 (105 Stat. 75).''

EFFECTIVE DATE

Section 101(c) (title X, Sec. 942(b)) of Pub. L. 99-500 and Pub.

L. 99-591, and section 942(b) of title IX, formerly title IV, of

Pub. L. 99-661, renumbered title IX, Pub. L. 100-26, Sec. 3(5),

Apr. 21, 1987, 101 Stat. 273, provided that: ''Section 2409 of

title 10, United States Code (as added by subsection (a)(1)), shall

apply with respect to any reprisal action taken on or after the

date of the enactment of this Act (Oct. 18, 1986).''

-CITE-

10 USC Sec. 2409a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2409a. Repealed. Pub. L. 103-355, title VI, Sec. 6005(b)(1),

Oct. 13, 1994, 108 Stat. 3365)

-MISC1-

Section, added Pub. L. 101-510, div. A, title VIII, Sec.

837(a)(1), Nov. 5, 1990, 104 Stat. 1616; amended Pub. L. 102-25,

title VII, Sec. 701(j)(4), (k)(2), Apr. 6, 1991, 105 Stat. 116,

117, required promulgation of regulations prohibiting defense

contractor from discharging or discriminating against employee for

disclosing to Government official information concerning contract

between contractor and Department of Defense evidencing violation

of Federal law or regulation and providing certain complaint and

investigation provisions and provided procedures for review and

enforcement.

EFFECTIVE DATE OF REPEAL

For effective date and applicability of repeal, see section 10001

of Pub. L. 103-355, set out as an Effective Date of 1994 Amendment

note under section 251 of Title 41, Public Contracts.

-CITE-

10 USC Sec. 2410 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410. Requests for equitable adjustment or other relief:

certification

-STATUTE-

(a) Certification Requirement. - A request for equitable

adjustment to contract terms or request for relief under Public Law

85-804 (50 U.S.C. 1431 et seq.) that exceeds the simplified

acquisition threshold may not be paid unless a person authorized to

certify the request on behalf of the contractor certifies, at the

time the request is submitted, that -

(1) the request is made in good faith, and

(2) the supporting data are accurate and complete to the best

of that person's knowledge and belief.

(b) Restriction on Legislative Payment of Claims. - In the case

of a contract of an agency named in section 2303(a) of this title,

no provision of a law enacted after September 30, 1994, that

directs the payment of a particular claim under such contract, a

particular request for equitable adjustment to any term of such

contract, or a particular request for relief under Public Law

85-804 (50 U.S.C. 1431 et seq.) regarding such contract may be

implemented unless such provision of law -

(1) specifically refers to this subsection; and

(2) specifically states that this subsection does not apply

with respect to the payment directed by that provision of law.

(c) Definition. - In this section, the term ''simplified

acquisition threshold'' has the meaning given that term in section

4(11) of the Office of Federal Procurement Policy Act.

-SOURCE-

(Added Pub. L. 103-355, title II, Sec. 2301(a), Oct. 13, 1994, 108

Stat. 3320.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 85-804, referred to in subsecs. (a) and (b), is Pub.

L. 85-804, Aug. 28, 1958, 72 Stat. 972, as amended, which is

classified generally to chapter 29 (Sec. 1431 et seq.) of Title 50,

War and National Defense. For complete classification of this Act

to the Code, see Tables.

Section 4(11) of the Office of Federal Procurement Policy Act,

referred to in subsec. (c), is classified to section 403(11) of

Title 41, Public Contracts.

-MISC2-

PRIOR PROVISIONS

A prior section, added Pub. L. 100-370, Sec. 1(h)(2), July 19,

1988, 102 Stat. 847, provided that contract claims, requests for

equitable adjustments, requests for relief under section 1431 et

seq. of Title 50, War and National Defense, and other similar

requests by contractors exceeding $100,000 were not to be paid

unless senior official of contractor certified that claim or

request was made in good faith and that data submitted was accurate

and complete to the best of such official's knowledge and belief,

prior to repeal by Pub. L. 102-484, div. A, title VIII, Sec.

813(b), Oct. 23, 1992, 106 Stat. 2453, effective upon promulgation

of regulations pursuant to former section 2410e of this title

(Interim rules, effective Apr. 30, 1993, were promulgated and

published in the Federal Register, 58 F.R. 28458, May 13, 1993, and

final rules, effective May 27, 1994, were promulgated and published

in the Federal Register, 59 F.R. 27662, May 27, 1994).

EFFECTIVE DATE

For effective date and applicability of section, see section

10001 of Pub. L. 103-355, set out as an Effective Date of 1994

Amendment note under section 251 of Title 41, Public Contracts.

-CITE-

10 USC Sec. 2410a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410a. Severable service contracts for periods crossing fiscal

years

-STATUTE-

(a) Authority. - The Secretary of Defense, the Secretary of a

military department, or the Secretary of Homeland Security with

respect to the Coast Guard when it is not operating as a service in

the Navy, may enter into a contract for procurement of severable

services for a period that begins in one fiscal year and ends in

the next fiscal year if (without regard to any option to extend the

period of the contract) the contract period does not exceed one

year.

(b) Obligation of Funds. - Funds made available for a fiscal year

may be obligated for the total amount of a contract entered into

under the authority of subsection (a).

-SOURCE-

(Added Pub. L. 100-370, Sec. 1(h)(2), July 19, 1988, 102 Stat. 847;

amended Pub. L. 102-190, div. A, title III, Sec. 342, Dec. 5,

1991, 105 Stat. 1343; Pub. L. 104-324, title II, Sec. 214(b), Oct.

19, 1996, 110 Stat. 3915; Pub. L. 105-85, div. A, title VIII, Sec.

801(a), Nov. 18, 1997, 111 Stat. 1831; Pub. L. 107-296, title XVII,

Sec. 1704(b)(1), Nov. 25, 2002, 116 Stat. 2314.)

-MISC1-

HISTORICAL AND REVISION NOTES

Section is based on Pub. L. 99-190, Sec. 101(b) (title VIII, Sec.

8005(e), (h), (l)), Dec. 19, 1985, 99 Stat. 1185, 1202.

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-296 substituted ''of Homeland

Security'' for ''of Transportation''.

1997 - Pub. L. 105-85 amended section generally. Prior to

amendment, section related to availability of appropriated funds

for payments under contracts for various types of maintenance,

leases, and operations and authorized Secretary of Transportation

to enter into contracts for procurement of severable services.

1996 - Pub. L. 104-324 designated existing provisions as subsec.

(a) and added subsec. (b).

1991 - Par. (1). Pub. L. 102-190, Sec. 342(1), inserted '',

equipment,'' after ''tools''.

Par. (4). Pub. L. 102-190, Sec. 342(2), added par. (4).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-296 effective on the date of transfer of

the Coast Guard to the Department of Homeland Security, see section

1704(g) of Pub. L. 107-296, set out as a note under section 101 of

this title.

-CITE-

10 USC Sec. 2410b 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410b. Contractor inventory accounting systems: standards

-STATUTE-

(a) The Secretary of Defense shall prescribe in regulations -

(1) standards for inventory accounting systems used by

contractors under contract with the Department of Defense; and

(2) appropriate enforcement requirements with respect to such

standards.

(b) The regulations prescribed pursuant to subsection (a) shall

not apply to a contract that is for an amount not greater than the

simplified acquisition threshold.

(c) The regulations prescribed pursuant to subsection (a) shall

not apply to a contract for the purchase of commercial items (as

defined in section 4(12) of the Office of Federal Procurement

Policy Act (41 U.S.C. 403(12))).

-SOURCE-

(Added Pub. L. 100-456, div. A, title VIII, Sec. 834(a)(1), Sept.

29, 1988, 102 Stat. 2024; amended Pub. L. 103-355, title IV, Sec.

4102(h), title VIII, Sec. 8105(i), Oct. 13, 1994, 108 Stat. 3341,

3393; Pub. L. 104-106, div. D, title XLIII, Sec. 4301(a)(1), Feb.

10, 1996, 110 Stat. 656; Pub. L. 104-201, div. A, title X, Sec.

1074(b)(3), Sept. 23, 1996, 110 Stat. 2660.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a)(2). Pub. L. 104-106, as amended by Pub. L.

104-201, struck out ''certification and'' after ''appropriate''.

1994 - Subsecs. (a), (b). Pub. L. 103-355, Sec. 4102(h),

designated existing provisions as subsec. (a) and added subsec.

(b).

Subsec. (c). Pub. L. 103-355, Sec. 8105(i), added subsec. (c).

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by Pub. L.

104-106, see section 4401 of Pub. L. 104-106, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

REGULATIONS

Section 834(b) of Pub. L. 100-456 provided that:

''(1) The Secretary of Defense shall prescribe the regulations

required by paragraph (1) of section 2410b of title 10, United

States Code, as added by subsection (a), not later than 30 days

after the date of the enactment of this Act (Sept. 29, 1988).

''(2) The Secretary of Defense shall prescribe the regulations

required by paragraph (2) of section 2410b of title 10, United

States Code, as added by subsection (a), not later than 180 days

after the date of the enactment of this Act.''

-CITE-

10 USC Sec. 2410c 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410c. Preference for energy efficient electric equipment

-STATUTE-

(a) When cost effective, in establishing a new requirement for

electric equipment referred to in subsection (b) and in procuring

electric equipment referred to in that subsection, the Secretary of

a military department or the head of a Defense Agency, as the case

may be, shall provide a preference for the procurement of the most

energy efficient electric equipment available that meets the

requirement or the need for the procurement, as the case may be.

(b) Subsection (a) applies to the following electric equipment:

(1) Electric lamps.

(2) Electric ballasts.

(3) Electric motors.

(4) Electric refrigeration equipment.

-SOURCE-

(Added Pub. L. 102-484, div. A, title III, Sec. 384(a)(1)(A), Oct.

23, 1992, 106 Stat. 2392.)

-COD-

CODIFICATION

Another section 2410c was renumbered section 2410j of this title.

-MISC3-

EFFECTIVE DATE OF 1992 AMENDMENT

Section 384(a)(2) of Pub. L. 102-484 provided that: ''The

amendments made by paragraph (1) (enacting this section) shall

apply to procurements for which solicitations are issued on or

after the date that is 120 days after the date of the enactment of

this Act (Oct. 23, 1992).''

ELECTRIC LIGHTING AND REFRIGERATION EQUIPMENT DEMONSTRATION

PROGRAMS

Section 384(b)-(d) of Pub. L. 102-484 provided that:

''(b) Electric Lighting Demonstration Program. - (1) The

Secretary of Defense shall conduct a demonstration program for

using energy efficient electric lighting equipment.

''(2) The Secretary shall designate 50 facilities owned or leased

by the Department of Defense for participation in the demonstration

program under this subsection.

''(3) The head of each facility designated pursuant to paragraph

(2) and the Director of the Defense Logistics Agency shall jointly

audit the electric lighting equipment at the facility in order -

''(A) to identify any potential improvements that would

increase the energy efficiency of electric lighting at that

facility; and

''(B) to determine the costs of, and the savings that would

result from, such improvements.

''(4) Except as provided in subsection (d)(4), on the basis of

the results of the audit the head of the facility shall promptly

convert to the use of electric lighting equipment at the facility

that is more energy efficient than the existing electric lighting

equipment to the extent that the conversion is cost effective.

''(5) Energy efficient electric lighting equipment used under the

demonstration program may include compact fluorescent lamps, energy

efficient electric ballasts and fixtures, and other energy

efficient electric lighting equipment.

''(c) Refrigeration Equipment Demonstration Program. - (1) The

Secretary of Defense shall conduct a demonstration program for

using energy efficient refrigeration equipment.

''(2) The Secretary shall designate 50 facilities owned or

operated by the Department of Defense for participation in the

demonstration program under this subsection.

''(3) The head of each facility designated pursuant to paragraph

(2) and the Director of the Defense Logistics Agency shall jointly

audit the refrigeration equipment at the facility in order -

''(A) to identify any potential improvements that would

increase the energy efficiency of the refrigeration equipment at

that facility; and

''(B) to determine the costs of, and the savings that would

result from, such improvements.

''(4) Except as provided in subsection (d)(4), on the basis of

the results of the audit the head of the facility shall promptly

convert to the use of refrigeration equipment at the facility that

is more energy efficient than the existing refrigeration equipment

to the extent that the conversion is cost effective.

''(d) General Provisions for Demonstration Programs. - (1) The

Secretary of Defense shall make the designations under subsections

(b)(2) and (c)(2) not later than 180 days after the date of the

enactment of this Act (Oct. 23, 1992).

''(2) The Secretary of Defense may designate a facility described

in subsections (b)(2) and (c)(2) for participation in the

demonstration program under subsection (b) and the demonstration

program under subsection (c).

''(3) The audits required by subsections (b)(3) and (c)(3) shall

be completed not later than January 1, 1994.

''(4) The head of a facility may not carry out a conversion

described in subsection (b)(4) or (c)(4) if the conversion prevents

the head of the facility from carrying out other improvements

relating to energy efficiency that are more cost effective than

that conversion.''

-CITE-

10 USC Sec. 2410d 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410d. Subcontracting plans: credit for certain purchases

-STATUTE-

(a) Purchases Benefiting Severely Handicapped Persons. - In the

case of a business concern that has negotiated a small business

subcontracting plan with a military department or a Defense Agency,

purchases made by that business concern from qualified nonprofit

agencies for the blind or other severely handicapped shall count

toward meeting the subcontracting goal provided in that plan.

(b) Definitions. - In this section:

(1) The term ''small business subcontracting plan'' means a

plan negotiated pursuant to section 8(d) of the Small Business

Act (15 U.S.C. 637(d)) that establishes a goal for the

participation of small business concerns as subcontractors under

a contract.

(2) The term ''qualified nonprofit agency for the blind or

other severely handicapped'' means -

(A) a qualified nonprofit agency for the blind, as defined in

section 5(3) of the Javits-Wagner-O'Day Act (41 U.S.C. 48b(3));

(B) a qualified nonprofit agency for other severely

handicapped, as defined in section 5(4) of such Act (41 U.S.C.

48b(4)); and

(C) a central nonprofit agency designated by the Committee

for Purchase from People Who Are Blind or Severely Disabled

under section 2(c) of such Act (41 U.S.C. 47(c)).

-SOURCE-

(Added Pub. L. 102-484, div. A, title VIII, Sec. 808(b)(1), Oct.

23, 1992, 106 Stat. 2449; amended Pub. L. 103-337, div. A, title

VIII, Sec. 804, Oct. 5, 1994, 108 Stat. 2815; Pub. L. 104-106,

div. D, title XLIII, Sec. 4321(b)(15), Feb. 10, 1996, 110 Stat.

673; Pub. L. 105-85, div. A, title VIII, Sec. 835, Nov. 18, 1997,

111 Stat. 1843; Pub. L. 106-65, div. A, title VIII, Sec. 807, Oct.

5, 1999, 113 Stat. 705.)

-COD-

CODIFICATION

Another section 2410d was renumbered section 2410k of this title.

-MISC3-

AMENDMENTS

1999 - Subsec. (c). Pub. L. 106-65 struck out heading and text of

subsec. (c). Text read as follows: ''Subsection (a) shall cease to

be effective at the end of September 30, 1999.''

1997 - Subsec. (c). Pub. L. 105-85 substituted ''September 30,

1999'' for ''September 30, 1997''.

1996 - Subsec. (b)(3). Pub. L. 104-106 struck out par. (3) which

read as follows: ''The term 'Javits-Wagner-O'Day Act' means the Act

entitled 'An Act to create a Committee on Purchases of Blind-made

Products, and for other purposes', approved June 25, 1938 (41

U.S.C. 46-48c), commonly referred to as the Wagner-O'Day Act, that

was revised and reenacted in the Act of June 23, 1971 (85 Stat.

77), commonly referred to as the Javits-Wagner-O'Day Act.''

1994 - Subsec. (b)(2)(C). Pub. L. 103-337, Sec. 804(1)(A), added

subpar. (C).

Subsec. (b)(3), (4). Pub. L. 103-337, Sec. 804(1)(B), (C),

redesignated par. (4) as (3) and struck out former par. (3) which

read as follows: ''The terms 'approved commodity' and 'approved

service' mean a commodity and a service, respectively, that has

been determined by the Committee for Purchase from the Blind and

Other Severely Handicapped under section 2 of such Act (41 U.S.C.

47) to be suitable for procurement by the Federal Government.''

Subsec. (c). Pub. L. 103-337, Sec. 804(2), substituted

''September 30, 1997'' for ''September 30, 1994''.

EFFECTIVE DATE OF 1997 AMENDMENT

Section 835 of Pub. L. 105-85 provided that the amendment made by

that section is effective as of Sept. 30, 1997.

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by Pub. L.

104-106, see section 4401 of Pub. L. 104-106, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE

Section 808(c) of Pub. L. 102-484 provided that: ''Sections

2301(d) and 2410d of title 10, United States Code (as added by

subsections (a) and (b), respectively), shall take effect on

October 1, 1993.''

-CITE-

10 USC Sec. 2410e 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2410e. Repealed. Pub. L. 103-355, title II, Sec. 2301(b),

Oct. 13, 1994, 108 Stat. 3321)

-MISC1-

Section, added Pub. L. 102-484, div. A, title VIII, Sec.

813(a)(1), Oct. 23, 1992, 106 Stat. 2452, directed Secretary of

Defense to propose, for inclusion in Federal Acquisition

Regulation, regulations relating to certification of contract

claims, requests for equitable adjustment to contract terms, and

requests for relief under section 1431 et seq. of Title 50, War and

National Defense, that exceeded $100,000.

EFFECTIVE DATE OF REPEAL

For effective date and applicability of repeal, see section 10001

of Pub. L. 103-355, set out as an Effective Date of 1994 Amendment

note under section 251 of Title 41, Public Contracts.

-CITE-

10 USC Sec. 2410f 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410f. Debarment of persons convicted of fraudulent use of

''Made in America'' labels

-STATUTE-

(a) If the Secretary of Defense determines that a person has been

convicted of intentionally affixing a label bearing a ''Made in

America'' inscription, or another inscription with the same

meaning, to any product sold in or shipped to the United States

that is not made in America, the Secretary shall determine, not

later than 90 days after determining that the person has been so

convicted, whether the person should be debarred from contracting

with the Department of Defense.

(b) In this section, the term ''debar'' has the meaning given

that term by section 2393(c) of this title.

-SOURCE-

(Added Pub. L. 102-484, div. A, title VIII, Sec. 834(a)(1), Oct.

23, 1992, 106 Stat. 2461; amended Pub. L. 104-106, div. A, title

X, Sec. 1062(f), title XV, Sec. 1503(a)(22), Feb. 10, 1996, 110

Stat. 444, 512; Pub. L. 107-107, div. A, title X, Sec.

1048(a)(20), Dec. 28, 2001, 115 Stat. 1223.)

-MISC1-

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-107 inserted '', or another

inscription with the same meaning,'' after ''inscription''.

1996 - Subsec. (a). Pub. L. 104-106, Sec. 1062(f), struck out at

end ''If the Secretary determines that the person should not be

debarred, the Secretary shall submit to Congress a report on such

determination not later than 30 days after the determination is

made.''

Subsec. (b). Pub. L. 104-106, Sec. 1503(a)(22), substituted

''In'' for ''For purposes of''.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 834(b) of Pub. L. 102-484 provided that: ''Section 2410f

of title 10, United States Code, as added by subsection (a), shall

take effect 90 days after the date of the enactment of this Act

(Oct. 23, 1992).''

PROHIBITION OF CONTRACTS

Pub. L. 106-398, Sec. 1 ((div. A), title VIII, Sec. 825(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-220, provided that: ''If the

Secretary of Defense determines that a person has been convicted of

intentionally affixing a label bearing a 'Made in America'

inscription, or another inscription with the same meaning, to any

product sold in or shipped to the United States that is not made in

the United States, the Secretary shall determine, in accordance

with section 2410f of title 10, United States Code, whether the

person should be debarred from contracting with the Department of

Defense.''

Similar provisions were contained in the following prior

authorization acts:

Pub. L. 106-65, div. A, title VIII, Sec. 816(b), Oct. 5, 1999,

113 Stat. 712.

Pub. L. 103-160, div. A, title VIII, Sec. 849(b), Nov. 30, 1993,

107 Stat. 1725.

-CITE-

10 USC Sec. 2410g 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410g. Advance notification of contract performance outside

the United States

-STATUTE-

(a) Notification. - (1) A firm that is performing a Department of

Defense contract for an amount exceeding $10,000,000, or is

submitting a bid or proposal for such a contract, shall notify the

Department of Defense in advance of any intention of the firm or

any first-tier subcontractor of the firm to perform outside the

United States and Canada any part of the contract that exceeds

$500,000 in value and could be performed inside the United States

or Canada.

(2) If a firm submitting a bid or proposal for a Department of

Defense contract is required to submit a notification under this

subsection, and the firm is aware, at the time it submits its bid

or proposal, that the firm intends to perform outside the United

States and Canada any part of the contract that exceeds $500,000 in

value and could be performed inside the United States or Canada,

the firm shall include the notification in its bid or proposal.

(3) The notification by a firm under paragraph (1) with respect

to a first-tier subcontractor shall be made, to the maximum extent

practicable, at least 30 days before award of the subcontract.

(b) Recipient of Notification. - The firm shall transmit the

notification -

(1) in the case of a contract of a military department, to such

officer or employee of that military department as the Secretary

of the military department may direct; and

(2) in the case of any other Department of Defense contract, to

such officer or employee of the Department of Defense as the

Secretary of Defense may direct.

(c) Availability of Notifications. - The Secretary of Defense

shall ensure that the notifications (or copies) are maintained in

compiled form for a period of 5 years after the date of submission

and are available for use in the preparation of the national

defense technology and industrial base assessment carried out under

section 2505 of this title.

(d) Inapplicability to Certain Contracts. - This section shall

not apply to contracts for any of the following:

(1) Commercial items (as defined in section 4(12) of the Office

of Federal Procurement Policy Act (41 U.S.C. 403(12))).

(2) Military construction.

(3) Ores.

(4) Natural gas.

(5) Utilities.

(6) Petroleum products and crudes.

(7) Timber.

(8) Subsistence.

-SOURCE-

(Added Pub. L. 102-484, div. A, title VIII, Sec. 840(a)(1), Oct.

23, 1992, 106 Stat. 2466; amended Pub. L. 104-106, div. D, title

XLIII, Sec. 4321(b)(16), Feb. 10, 1996, 110 Stat. 673.)

-MISC1-

AMENDMENTS

1996 - Subsec. (d)(1). Pub. L. 104-106 inserted ''(as defined in

section 4(12) of the Office of Federal Procurement Policy Act (41

U.S.C. 403(12)))'' before period at end.

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by Pub. L.

104-106, see section 4401 of Pub. L. 104-106, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 840(b) of Pub. L. 102-484 provided that: ''Section 2410g

of title 10, United States Code (as added by subsection (a)), shall

take effect 90 days after the date of the enactment of this Act

(Oct. 23, 1992).''

-CITE-

10 USC Sec. 2410h 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

(Sec. 2410h. Renumbered Sec. 1747)

-CITE-

10 USC Sec. 2410i 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410i. Prohibition on contracting with entities that comply

with the secondary Arab boycott of Israel

-STATUTE-

(a) Policy. - Under section 3(5)(A) of the Export Administration

Act of 1979 (50 U.S.C. App. 2402(5)(A)), it is the policy of the

United States to oppose restrictive trade practices or boycotts

fostered or imposed by foreign countries against other countries

friendly to the United States or against any other United States

person.

(b) Prohibition. - (1) Consistent with the policy referred to in

subsection (a), the Department of Defense may not award a contract

for an amount in excess of the small purchase threshold (as defined

in section 4(11) of the Office of Federal Procurement Policy Act

(41 U.S.C. 403(11))) to a foreign entity unless that entity

certifies to the Secretary of Defense that it does not comply with

the secondary Arab boycott of Israel.

(2) In paragraph (1), the term ''foreign entity'' means a foreign

person, a foreign company, or any other foreign entity.

(c) Waiver Authority. - The Secretary of Defense may waive the

prohibition in subsection (b) in specific instances when the

Secretary determines that the waiver is necessary in the national

security interests of the United States. Within 15 days after the

end of each fiscal year, the Secretary shall submit to Congress a

report identifying each contract for which a waiver was granted

under this subsection during that fiscal year.

(d) Exceptions. - Subsection (b) does not apply -

(1) to contracts for consumable supplies, provisions, or

services that are intended to be used for the support of United

States forces or of allied forces in a foreign country; or

(2) to contracts pertaining to the use of any equipment,

technology, data, or services for intelligence or classified

purposes by the United States Government in the interests of

national security or to the acquisition or lease of any such

equipment, technology, data, or services by the United States

Government in the interests of national security.

-SOURCE-

(Added Pub. L. 102-484, div. A, title XIII, Sec. 1332(a), Oct. 23,

1992, 106 Stat. 2555.)

-CITE-

10 USC Sec. 2410j 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410j. Displaced contractor employees: assistance to obtain

certification and employment as teachers or employment as

teachers' aides

-STATUTE-

(a) Assistance Program. - The Secretary of Defense may enter into

a cooperative agreement with a defense contractor in order -

(1) to assist an eligible scientist or engineer employed by the

contractor whose employment is terminated to obtain -

(A) certification or licensure as an elementary or secondary

school teacher; or

(B) the credentials necessary to serve as a teacher's aide;

and

(2) to facilitate the employment of the scientist or engineer

by a local educational agency that -

(A) is receiving a grant under title I of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) as a

result of having within its jurisdiction concentrations of

children from low-income families; and

(B) is also experiencing a shortage of teachers or teachers'

aides.

(b) Eligible Defense Contractors. - (1) The Secretary of Defense

shall establish an application and selection process for the

participation of defense contractors in a cooperative agreement

authorized under subsection (a).

(2) The Secretary shall determine which defense contractors are

eligible to participate in the placement program on the basis of

applications submitted under subsection (c). The Secretary shall

limit participation to those defense contractors or subcontractors

that -

(A) produce goods or services for the Department of Defense

pursuant to a defense contract or operate nuclear weapons

manufacturing facilities for the Department of Energy; and

(B) have recently reduced operations, or are likely to reduce

operations, due to the completion or termination of a defense

contract or program or by reductions in defense spending.

(3) The Secretary shall give special consideration to defense

contractors who are located in areas that have been hit

particularly hard by reductions in defense spending.

(c) Defense Contractor Applications. - (1) A defense contractor

desiring to enter into a cooperative agreement with the Secretary

of Defense under subsection (a) shall submit an application to the

Secretary containing the following:

(A) Evidence that the contractor has been, or is expected to

be, adversely affected by the completion or termination of a

defense contract or program or by reductions in defense spending.

(B) An explanation that scientists and engineers employed by

the contractor have been terminated, laid off, or retired, or are

likely to be terminated, laid off, or retired, as a result of the

completion or termination of a defense contract or program or

reductions in defense spending.

(C) A description of programs implemented or proposed by the

contractor to assist these scientists and engineers.

(D) A commitment to help fund the costs associated with the

placement program by paying 50 percent of the stipend provided

under subsection (g) to an employee or former employee of the

contractor selected to receive assistance under this section.

(2) Once a cooperative agreement is entered into under subsection

(a) between the Secretary and the defense contractor, the

contractor shall publicize the program and distribute applications

to prospective participants, and assist the prospective

participants with the State screening process.

(d) Eligible Scientists and Engineers. - An individual shall be

eligible for selection by the Secretary of Defense to receive

assistance under this section if the individual -

(1) is employed or has been employed for not less than five

years as a scientist or engineer with a private defense

contractor that has entered into an agreement under subsection

(a);

(2) has received -

(A) in the case of an individual applying for assistance for

placement as an elementary or secondary school teacher, a

baccalaureate or advanced degree from an accredited institution

of higher education; or

(B) in the case of an individual applying for assistance for

placement as a teacher's aide in an elementary or secondary

school, an associate, baccalaureate, or advanced degree from an

accredited institution of higher education or a junior or

community college; and

(3) has been terminated or laid off (or received notice of

termination or lay off) as a result of the completion or

termination of a defense contract or program or reductions in

defense spending; and

(4) satisfies such other criteria for selection as the

Secretary may prescribe.

(e) Selection of Participants. - (1) In selecting participants to

receive assistance for placement as elementary or secondary school

teachers, the Secretary shall give priority to individuals who -

(A) have educational, military, or employment experience in

science, mathematics, or engineering and agree to seek employment

as science, mathematics, or engineering teachers in elementary or

secondary schools; or

(B) have educational, military, or employment experience in

another subject area identified by the Secretary, in consultation

with the Secretary of Education, as important for national

educational objectives and agree to seek employment in that

subject area in elementary or secondary schools.

(2) The Secretary may not select an individual under this section

unless the Secretary has sufficient appropriations to carry out

this section available at the time of the selection to satisfy the

obligations to be incurred by the United States under this section

with respect to that individual.

(f) Agreement. - An individual selected under this section shall

be required to enter into an agreement with the Secretary in which

the participant agrees -

(1) to obtain, within such time as the Secretary may require,

certification or licensure as an elementary or secondary school

teacher or the necessary credentials to serve as a teacher's aide

in an elementary or secondary school; and

(2) to accept -

(A) in the case of an individual selected for assistance for

placement as a teacher, an offer of full-time employment as an

elementary or secondary school teacher for not less than two

school years with a local educational agency identified under

section 1151(b)(2) of this title, as in effect on October 4,

1999, to begin the school year after obtaining that

certification or licensure; or

(B) in the case of an individual selected for assistance for

placement as a teacher's aide, an offer of full-time employment

as a teacher's aide in an elementary or secondary school for

not less than two school years with a local educational agency

identified under section 1151(b)(3) of this title, as in effect

on October 4, 1999, to begin the school year after obtaining

the necessary credentials.

(g) Stipend for Participants. - (1) The Secretary of Defense

shall pay to each participant in the placement program a stipend in

an amount equal to the lesser of -

(A) $5,000; or

(B) the total costs of the type described in paragraphs (1),

(2), (3), (8), and (9) of section 472 of the Higher Education Act

of 1965 (20 U.S.C. 1087ll) incurred by the participant while

obtaining teacher certification or licensure or the necessary

credentials to serve as a teacher's aide and employment as an

elementary or secondary school teacher or teacher aide.

(2) A stipend provided under this section shall be taken into

account in determining the eligibility of the participant for

Federal student financial assistance provided under title IV of the

Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).

(h) Placement of Participants as Teachers and Teachers' Aides. -

Subsections (h) through (k) of section 1151 of this title, as in

effect on October 4, 1999, shall apply with respect to the

placement as teachers and teachers' aides of individuals selected

under this section.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLIV, Sec. 4443(a), Oct. 23,

1992, 106 Stat. 2732, Sec. 2410c; renumbered Sec. 2410j and amended

Pub. L. 103-35, title II, Sec. 201(b)(1)(A), (g)(6), May 31, 1993,

107 Stat. 97, 100; Pub. L. 103-160, div. A, title XIII, Sec.

1331(c)(3), Nov. 30, 1993, 107 Stat. 1792; Pub. L. 103-382, title

III, Sec. 391(b)(5), Oct. 20, 1994, 108 Stat. 4022; Pub. L.

104-106, div. A, title XV, Sec. 1503(a)(23), Feb. 10, 1996, 110

Stat. 512; Pub. L. 104-201, div. A, title V, Sec. 576(c), Sept.

23, 1996, 110 Stat. 2535; Pub. L. 106-398, Sec. 1 ((div. A), title

X, Sec. 1087(a)(14)), Oct. 30, 2000, 114 Stat. 1654, 1654A-291.)

-REFTEXT-

REFERENCES IN TEXT

The Elementary and Secondary Education Act of 1965, referred to

in subsec. (a)(2)(A), is Pub. L. 89-10, Apr. 11, 1965, 79 Stat. 27,

as amended. Title I of the Act is classified generally to

subchapter I (Sec. 6301 et seq.) of chapter 70 of Title 20,

Education. For complete classification of this Act to the Code, see

Short Title note set out under section 6301 of Title 20 and Tables.

Section 1151 of this title, referred to in subsecs. (f)(2)(A),

(B) and (h), was repealed by Pub. L. 106-65, div. A, title XVII,

Sec. 1707(a)(1), Oct. 5, 1999, 113 Stat. 823.

The Higher Education Act of 1965, referred to in subsec. (g)(2),

is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Title

IV of the Act is classified generally to subchapter IV (Sec. 1070

et seq.) of chapter 28 of Title 20 and part C (Sec. 2751 et seq.)

of subchapter I of chapter 34 of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

Short Title note set out under section 1001 of Title 20 and Tables.

-MISC2-

AMENDMENTS

2000 - Subsec. (f)(2). Pub. L. 106-398, Sec. 1 ((div. A), title

X, Sec. 1087(a)(14)(A)), inserted ''as in effect on October 4,

1999,'' after ''of this title,'' in subpars. (A) and (B).

Subsec. (h). Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1087(a)(14)(B)), inserted '', as in effect on October 4, 1999,''

after ''of this title''.

1996 - Subsec. (a)(2)(A). Pub. L. 104-106 substituted ''6301''

for ''2701''.

Subsec. (f)(2)(A), (B). Pub. L. 104-201 substituted ''two school

years'' for ''five school years''.

1994 - Subsec. (a)(2)(A). Pub. L. 103-382 struck out ''chapter 1

of'' after ''grant under''.

1993 - Pub. L. 103-35, Sec. 201(b)(1)(A), renumbered section

2410c of this title as this section.

Subsec. (f)(2)(A), (B). Pub. L. 103-160 substituted ''five school

years'' for ''two school years''.

Subsec. (f)(2)(B). Pub. L. 103-35, Sec. 201(g)(6), substituted

''aide'' for ''aid'' after ''for placement as a teacher's''.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-160 not applicable with respect to

persons selected by Secretary of Defense before Nov. 30, 1993, to

participate in teacher and teacher's aide placement programs

established pursuant to sections 1151, 1598, and 2410j of this

title or agreements entered into by Secretary before such date with

local educational agencies under such sections, see section 1331(h)

of Pub. L. 103-160, set out as a note under section 1598 of this

title.

SAVINGS PROVISION

Amendments by section 576 of Pub. L. 104-201 not to affect

obligations under agreements entered into in accordance with

section 1151, 1598, or 2410j of this title before Sept. 23, 1996,

see section 576(d) of Pub. L. 104-201, set out as a note under

section 1598 of this title.

-CITE-

10 USC Sec. 2410k 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410k. Defense contractors: listing of suitable employment

openings with local employment service office

-STATUTE-

(a) Regulations. - The Secretary of Defense shall promulgate

regulations containing the requirement described in subsection (b)

and such other provisions as the Secretary considers necessary to

administer such requirement. Such regulations shall require that

each contract described in subsection (c) shall contain a clause

requiring the contractor to comply with such regulations.

(b) Requirement. - The regulations promulgated under this section

shall require each contractor carrying out a contract described in

subsection (c) to list immediately with the appropriate local

employment service office, and where appropriate the Interstate Job

Bank (established by the United States Employment Service), all of

its suitable employment openings under such contract.

(c) Covered Contracts. - The regulations promulgated under this

section shall apply to any contract entered into with the

Department of Defense in an amount of $500,000 or more.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLIV, Sec. 4470(a)(1), Oct.

23, 1992, 106 Stat. 2753, Sec. 2410d; renumbered Sec. 2410k and

amended Pub. L. 103-35, title II, Sec. 201(b)(1)(A), 202(a)(18)(A),

May 31, 1993, 107 Stat. 97, 102.)

-MISC1-

AMENDMENTS

1993 - Pub. L. 103-35, Sec. 201(b)(1)(A), renumbered section

2410d of this title as this section.

Pub. L. 103-35, Sec. 202(a)(18)(A), made technical amendment to

directory language of Pub. L. 102-484, which enacted this section.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by section 202(a)(18)(A) of Pub. L. 103-35 applicable

as if included in the enactment of Pub. L. 102-484, see section

202(b) of Pub. L. 103-35, set out as a note under section 155 of

this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 4470(b) of Pub. L. 102-484 provided that: ''Section 2410d

of title 10, United States Code, as added by subsection (a), shall

apply with respect to contracts entered into beginning 120 days

after the date of the enactment of this Act (Oct. 23, 1992).''

-CITE-

10 USC Sec. 2410l 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410l. Contracts for advisory and assistance services: cost

comparison studies

-STATUTE-

(a) Requirement. - (1)(A) Before the Secretary of Defense enters

into a contract described in subparagraph (B), the Secretary shall

determine whether Department of Defense personnel have the

capability to perform the services proposed to be covered by the

contract.

(B) Subparagraph (A) applies to any contract of the Department of

Defense for advisory and assistance services that is expected to

have a value in excess of $100,000.

(2) If the Secretary determines that Department of Defense

personnel have the capability to perform the services to be covered

by the contract, the Secretary shall conduct a study comparing the

cost of performing the services with Department of Defense

personnel and the cost of performing the services with contractor

personnel.

(b) Waiver. - The Secretary of Defense may, pursuant to

guidelines prescribed by the Secretary, waive the requirement to

perform a cost comparison study under subsection (a)(2) based on

factors that are not related to cost.

-SOURCE-

(Added Pub. L. 103-337, div. A, title III, Sec. 363(a)(1), Oct. 5,

1994, 108 Stat. 2733.)

-MISC1-

EFFECTIVE DATE

Section 363(c) of Pub. L. 103-337 provided that: ''Section 2410l

of title 10, United States Code, as added by subsection (a), shall

take effect 180 days after the date of the enactment of this Act

(Oct. 5, 1994).''

PROCEDURES FOR CONDUCT OF STUDIES

Section 363(b) of Pub. L. 103-337 provided that: ''The Secretary

of Defense shall prescribe the following procedures:

''(1) Procedures for carrying out a cost comparison study under

subsection (a)(2) of section 2410l of title 10, United States

Code, as added by subsection (a), which may contain a requirement

that the cost comparison study include consideration of factors

that are not related to cost, including the quality of the

service required to be performed, the availability of Department

of Defense personnel, the duration and recurring nature of the

services to be performed, and the consistency of the workload.

''(2) Procedures for reviewing contracts entered into after a

waiver under subsection (b) of such section to determine whether

the contract is justified and sufficiently documented.''

-CITE-

10 USC Sec. 2410m 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410m. Retention of amounts collected from contractor during

the pendency of contract dispute

-STATUTE-

(a) Retention of Funds. - Notwithstanding sections 1552(a) and

3302(b) of title 31, any amount, including interest, collected from

a contractor as a result of a claim made by a military department

or Defense Agency under the Contract Disputes Act of 1978 (41

U.S.C. 601 et seq.), shall remain available in accordance with this

section to pay -

(1) any settlement of the claim by the parties;

(2) any judgment rendered in the contractor's favor on an

appeal of the decision on that claim to the Armed Services Board

of Contract Appeals under section 7 of such Act (41 U.S.C. 606);

or

(3) any judgment rendered in the contractor's favor in an

action on that claim in a court of the United States.

(b) Period of Availability. - (1) The period of availability of

an amount under subsection (a), in connection with a claim -

(A) expires 180 days after the expiration of the period for

bringing an action on that claim in the United States Court of

Federal Claims under section 10(a) of the Contract Disputes Act

of 1978 (41 U.S.C. 609(a)) if, within that 180-day period -

(i) no appeal on the claim is commenced at the Armed Services

Board of Contract Appeals under section 7 of such Act; and

(ii) no action on the claim is commenced in a court of the

United States; or

(B) if not expiring under subparagraph (A), expires -

(i) in the case of a settlement of the claim, 180 days after

the date of the settlement; or

(ii) in the case of a judgment rendered on the claim in an

appeal to the Armed Services Board of Contract Appeals under

section 7 of the Contract Disputes Act of 1978 or an action in

a court of the United States, 180 days after the date on which

the judgment becomes final and not appealable.

(2) While available under this section, an amount may be

obligated or expended only for a purpose described in subsection

(a).

(3) Upon the expiration of the period of availability of an

amount under paragraph (1), the amount shall be covered into the

Treasury as miscellaneous receipts.

(c) Reporting Requirement. - Each year, the Under Secretary of

Defense (Comptroller) shall submit to Congress a report on the

amounts, if any, that are available for obligation pursuant to this

section. The report shall include, at a minimum, the following:

(1) The total amount available for obligation.

(2) The total amount collected from contractors during the year

preceding the year in which the report is submitted.

(3) The total amount disbursed in such preceding year and a

description of the purpose for each disbursement.

(4) The total amount returned to the Treasury in such preceding

year.

-SOURCE-

(Added Pub. L. 105-85, div. A, title VIII, Sec. 831(a), Nov. 18,

1997, 111 Stat. 1841.)

-REFTEXT-

REFERENCES IN TEXT

The Contract Disputes Act of 1978, referred to in subsec. (a), is

Pub. L. 95-563, Nov. 1, 1978, 92 Stat. 2383, as amended, which is

classified principally to chapter 9 (Sec. 601 et seq.) of Title 41,

Public Contracts. For complete classification of this Act to the

Code see Short Title note set out under section 601 of Title 41 and

Tables.

-CITE-

10 USC Sec. 2410n 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410n. Products of Federal Prison Industries: procedural

requirements

-STATUTE-

(a) Market Research. - Before purchasing a product listed in the

latest edition of the Federal Prison Industries catalog under

section 4124(d) of title 18, the Secretary of Defense shall conduct

market research to determine whether the Federal Prison Industries

product is comparable to products available from the private sector

that best meet the Department's needs in terms of price, quality,

and time of delivery.

(b) Competition Requirement. - If the Secretary determines that a

Federal Prison Industries product is not comparable in price,

quality, or time of delivery to products available from the private

sector that best meet the Department's needs in terms of price,

quality, and time of delivery, the Secretary shall use competitive

procedures for the procurement of the product or shall make an

individual purchase under a multiple award contract. In conducting

such a compeititon (FOOTNOTE 1) or making such a purchase, the

Secretary shall consider a timely offer from Federal Prison

Industries.

(FOOTNOTE 1) So in original. Probably should be

''competition''.

(c) Implementation by Secretary of Defense. - The Secretary of

Defense shall ensure that -

(1) the Department of Defense does not purchase a Federal

Prison Industries product or service unless a contracting officer

of the Department determines that the product or service is

comparable to products or services available from the private

sector that best meet the Department's needs in terms of price,

quality, and time of delivery; and

(2) Federal Prison Industries performs its contractual

obligations to the same extent as any other contractor for the

Department of Defense.

(d) Market Research Determination Not Subject to Review. - A

determination by a contracting officer regarding whether a product

or service offered by Federal Prison Industries is comparable to

products or services available from the private sector that best

meet the Department's needs in terms of price, quality, and time of

delivery shall not be subject to review pursuant to section 4124(b)

of title 18.

(e) Performance as a Subcontractor. - (1) A contractor or

potential contractor of the Department of Defense may not be

required to use Federal Prison Industries as a subcontractor or

supplier of products or provider of services for the performance of

a Department of Defense contract by any means, including means such

as -

(A) a contract solicitation provision requiring a contractor to

offer to make use of products or services of Federal Prison

Industries in the performance of the contract;

(B) a contract specification requiring the contractor to use

specific products or services (or classes of products or

services) offered by Federal Prison Industries in the performance

of the contract; or

(C) any contract modification directing the use of products or

services of Federal Prison Industries in the performance of the

contract.

(2) In this subsection, the term ''contractor'', with respect to

a contract, includes a subcontractor at any tier under the

contract.

(f) Protection of Classified and Sensitive Information. - The

Secretary of Defense may not enter into any contract with Federal

Prison Industries under which an inmate worker would have access to

-

(1) any data that is classified;

(2) any geographic data regarding the location of -

(A) surface and subsurface infrastructure providing

communications or water or electrical power distribution;

(B) pipelines for the distribution of natural gas, bulk

petroleum products, or other commodities; or

(C) other utilities; or

(3) any personal or financial information about any individual

private citizen, including information relating to such person's

real property however described, without the prior consent of the

individual.

(g) Definitions. - In this section:

(1) The term ''competitive procedures'' has the meaning given

such term in section 2302(2) of this title.

(2) The term ''market research'' means obtaining specific

information about the price, quality, and time of delivery of

products available in the private sector through a variety of

means, which may include -

(A) contacting knowledgeable individuals in government and

industry;

(B) interactive communication among industry, acquisition

personnel, and customers; and

(C) interchange meetings or pre-solicitation conferences with

potential offerors.

-SOURCE-

(Added Pub. L. 107-107, div. A, title VIII, Sec. 811(a)(1), Dec.

28, 2001, 115 Stat. 1180; amended Pub. L. 107-314, div. A, title

VIII, Sec. 819(a)(1), Dec. 2, 2002, 116 Stat. 2612.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-314, Sec. 819(a)(1)(A),

substituted ''Market Research'' for ''Market Research Before

Purchase'' in heading and ''comparable to products available from

the private sector that best meet the Department's needs in terms

of price, quality, and time of delivery'' for ''comparable in

price, quality, and time of delivery to products available from the

private sector''.

Subsec. (b). Pub. L. 107-314, Sec. 819(a)(1)(B), added subsec.

(b) and struck out heading and text of former subsec. (b). Text

read as follows: ''If the Secretary determines that a Federal

Prison Industries product is not comparable in price, quality, and

time of delivery to products available from the private sector, the

Secretary shall use competitive procedures for the procurement of

the product. In conducting such a competition, the Secretary shall

consider a timely offer from Federal Prison Industries for award in

accordance with the specifications and evaluation factors specified

in the solicitation.''

Subsec. (c) to (g). Pub. L. 107-314, Sec. 819(a)(1)(C), added

subsecs. (c) to (g).

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-314, div. A, title VIII, Sec. 819(a)(2), Dec. 2,

2002, 116 Stat. 2613, provided that: ''Paragraph (1) (amending this

section) and the amendments made by such paragraph shall take

effect as of October 1, 2001.''

EFFECTIVE DATE

Pub. L. 107-107, div. A, title VIII, Sec. 811(b), Dec. 28, 2001,

115 Stat. 1181, provided that: ''Section 2410n of title 10, United

States Code (as added by subsection (a)), shall apply to purchases

initiated on or after October 1, 2001.''

REGULATORY IMPLEMENTATION

Pub. L. 107-314, div. A, title VIII, Sec. 819(b), Dec. 2, 2002,

116 Stat. 2613, provided that:

''(1) Proposed revisions to the Department of Defense Supplement

to the Federal Acquisition Regulation to implement this section

shall be published not later than 90 days after the date of the

enactment of this Act (Dec. 2, 2002), and not less than 60 days

shall be provided for public comment on the proposed revisions.

''(2) Final regulations shall be published not later than 180

days after the date of the enactment of this Act and shall be

effective on the date that is 30 days after the date of the

publication.''

-CITE-

10 USC Sec. 2410o 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 141 - MISCELLANEOUS PROCUREMENT PROVISIONS

-HEAD-

Sec. 2410o. Multiyear procurement authority: purchase of dinitrogen

tetroxide, hydrazine, and hydrazine-related products

-STATUTE-

(a) Ten-Year Contract Period. - The Secretary of Defense may

enter into a contract for a period of up to 10 years for the

purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related

products for the support of a United States national security

program or a United States space program.

(b) Extensions. - A contract entered into for more than one year

under the authority of subsection (a) may be extended for a total

of not more than 10 years pursuant to any option or options set

forth in the contract.

-SOURCE-

(Added Pub. L. 107-314, div. A, title VIII, Sec. 826(a), Dec. 2,

2002, 116 Stat. 2617.)

-CITE-