Title 10 — Armed Forces
Part V · Chapter 273 — Allowable Costs
§ 3745. Required regulations
Statutory text
In General.—
The Federal Acquisition Regulation shall contain provisions on the allowability of contractor costs. Such provisions shall define in detail and in specific terms those costs which are unallowable, in whole or in part, under covered contracts.
Specific Items.—
The regulations shall, at a minimum, clarify the cost principles applicable to contractor costs of the following:
Air shows.
Membership in civic, community, and professional organizations.
Recruitment.
Employee morale and welfare.
Actions to influence (directly or indirectly) executive branch action on regulatory and contract matters (other than costs incurred in regard to contract proposals pursuant to solicited or unsolicited bids).
Community relations.
Dining facilities.
Professional and consulting services, including legal services.
Compensation.
Selling and marketing.
Travel.
Public relations.
Hotel and meal expenses.
Expense of corporate aircraft.
Company-furnished automobiles.
Advertising.
Conventions.
Additional Requirements.—
When questioned costs may be resolved.—
The Federal Acquisition Regulation shall require that a contracting officer not resolve any questioned costs until he has obtained—
adequate documentation with respect to such costs; and
the opinion of the contract auditor on the allowability of such costs.
Presence of contract auditor.—
The Federal Acquisition Regulation shall provide that, to the maximum extent practicable, the contract auditor be present at any negotiation or meeting with the contractor regarding a determination of the allowability of indirect costs of the contractor.
Settlement to reflect amount of individual questioned costs.—
The Federal Acquisition Regulation shall require that all categories of costs designated in the report of the contract auditor as questioned with respect to a proposal for settlement be resolved in such a manner that the amount of the individual questioned costs that are paid will be reflected in the settlement.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 div. A title XVIII § 1832(a) · 134 Stat. 3388
Enacted · 10 U.S.C. § 3745
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (e), Jan. 1, 2021, 134 Stat. 4218, 4221.)
Source evidence
Code source credit
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (e), Jan. 1, 2021, 134 Stat. 4218, 4221.)Enacted provision · exact public law section
(a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3741. is amended by striking chapter 273 and inserting the following:”. “CHAPTER 273— ALLOWABLE COSTS “Subchapter Sec. “I. General “II. Other Allowable Cost Provisions “SUBCHAPTER I— GENERAL “Sec. “3741. Definitions. “3742. Adjustment of threshold amount of covered contract. “3743. Effect of submission of unallowable costs. “3744. Specific costs not allowable. “3745. Required regulations. “3746. Applicability of regulations to subcontractors. “3747. Contractor certification. “3748. Penalties for submission of cost known as not allowable. “3749. Burden of proof on contractor. “3750. Proceeding costs not allowable. “§ 3741. Definitions “In this subchapter: “§ 3742. Adjustment of threshold amount of covered contract “§ 3743. Effect of submission of unallowable costs “§ 3744. Specific costs not allowable “§ 3745. Required regulations “§ 3746. Applicability of regulations to subcontractors “§ 3747. Contractor certification “§ 3748. Penalties for submission of cost known as not allowable “§ 3749. Burden of proof on contractor “§ 3750. Proceeding costs not allowable” .William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1832(e)(1)(A) · 134 Stat. 3388
Struck · 10 U.S.C. § 3745
Pub. L. 116–283, § 1832(e)(1)(A), transferred subsec. (f) of section 2324 of this title to this section and struck out subsec. (f) designation and heading “Required Regulations” at beginning
Source evidence
Code amendment note
Pub. L. 116–283, § 1832(e)(1)(A), transferred subsec. (f) of section 2324 of this title to this section and struck out subsec. (f) designation and heading “Required Regulations” at beginning.Enacted provision · exact public law section
(A) by striking the subsection designation and subsection heading;William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1832(e)(1)(B) · 134 Stat. 3388
Redesignated · 10 U.S.C. § 3745(a)
Pub. L. 116–283, § 1832(e)(1)(B), (2), redesignated first two sentences of par. (1) of section 2324(f) of this title as subsec. (a) of this section
Inserted · 10 U.S.C. § 3745(a)
Pub. L. 116–283, § 1832(e)(1)(B), (2), inserted heading. Third sentence designated subsec. (b)
Source evidence
Code amendment note
Subsec. (a). Pub. L. 116–283, § 1832(e)(1)(B), (2), redesignated first two sentences of par. (1) of section 2324(f) of this title as subsec. (a) of this section and inserted heading. Third sentence designated subsec. (b).Enacted provision · exact public law section
(B) by redesignating paragraph (1) as subsection (a);William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1832(e)(1)(C) · 134 Stat. 3388
Amended · 10 U.S.C. § 3745(b)
Pub. L. 116–283, § 1832(e)(1)(C), (3), designated third sentence of subsec. (a) as subsec. (b)
Inserted · 10 U.S.C. § 3745(b)
Pub. L. 116–283, § 1832(e)(1)(C), (3), inserted heading
Redesignated · 10 U.S.C. § 3745(b)
Pub. L. 116–283, § 1832(e)(1)(C), (3), redesignated subpars. (A) to (Q) as pars. (1) to (17), respectively
Source evidence
Code amendment note
Subsec. (b). Pub. L. 116–283, § 1832(e)(1)(C), (3), designated third sentence of subsec. (a) as subsec. (b), inserted heading, and redesignated subpars. (A) to (Q) as pars. (1) to (17), respectively.Enacted provision · exact public law section
(C) by designating the third sentence of such subsection as subsection (b);William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1832(e)(1)(D) · 134 Stat. 3388
Redesignated · 10 U.S.C. § 3745(c)
Pub. L. 116–283, § 1832(e)(1)(D), (E), (4), redesignated pars. (2) to (4) of section 2324(f) of this title collectively as subsec. (c) of this section and individually as pars. (1) to (3), respectively, thereof
Inserted · 10 U.S.C. § 3745(c)
Pub. L. 116–283, § 1832(e)(1)(D), (E), (4), inserted subsec. and par. headings, and realigned margins
Source evidence
Code amendment note
Subsec. (c). Pub. L. 116–283, § 1832(e)(1)(D), (E), (4), redesignated pars. (2) to (4) of section 2324(f) of this title collectively as subsec. (c) of this section and individually as pars. (1) to (3), respectively, thereof, inserted subsec. and par. headings, and realigned margins.Enacted provision · exact public law section
(D) by redesignating paragraph (2) as subsection (c); and
9 of 9 references resolved to an enrolled provision
Editorial Notes
Codification
The text of subsec. (f) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(e), was based on Pub. L. 99–145, title IX, § 911(a)(1), , 99 Stat. 683; Pub. L. 100–456, div. A, title VIII, § 826(a), , 102 Stat. 1952; Pub. L. 100–463, title VIII, § 8105(a), , 102 Stat. 2270–36; Pub. L. 100–526, title I, § 106(a)(2), , 102 Stat. 2625; Pub. L. 102–484, div. A, title X, § 1052(26)(A), , 106 Stat. 2500; Pub. L. 103–355, title II, § 2101(a)(6), (c), , 108 Stat. 3307, 3308, as amended by Pub. L. 104–106, div. D, title XLIII, § 4321(a)(5), , 110 Stat. 671.
Another section 1832(e) of Pub. L. 116–283 amended section 3746 of this title.
Prior Provisions
A prior section 3745 was renumbered section 7275 of this title.
Amendments
2021—Pub. L. 116–283, § 1832(e)(1)(A), transferred subsec. (f) of section 2324 of this title to this section and struck out subsec. (f) designation and heading “Required Regulations” at beginning.
Subsec. (a). Pub. L. 116–283, § 1832(e)(1)(B), (2), redesignated first two sentences of par. (1) of section 2324(f) of this title as subsec. (a) of this section and inserted heading. Third sentence designated subsec. (b).
Subsec. (b). Pub. L. 116–283, § 1832(e)(1)(C), (3), designated third sentence of subsec. (a) as subsec. (b), inserted heading, and redesignated subpars. (A) to (Q) as pars. (1) to (17), respectively.
Subsec. (c). Pub. L. 116–283, § 1832(e)(1)(D), (E), (4), redesignated pars. (2) to (4) of section 2324(f) of this title collectively as subsec. (c) of this section and individually as pars. (1) to (3), respectively, thereof, inserted subsec. and par. headings, and realigned margins.
Statutory Notes and Related Subsidiaries
Effective Date
Section and amendment by Pub. L. 116–283 effective , with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
Regulations
For requirement to prescribe and periodically review regulations required by this section (formerly subsec. (f) of section 2324 of this title), see section 911(b) of Pub. L. 99–145, set out as a note under section 3744 of this title.
Credits
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (e), , 134 Stat. 4218, 4221.)