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119th Congress

Title 10 — Armed Forces

Part V · Chapter 273 — Allowable Costs

§ 3750. Proceeding costs not allowable

Statutory text

(a)

Definitions.—

In this section:

(1)

Costs.—

The term “costs”, with respect to a proceeding—

(A)

means all costs incurred by a contractor or subcontractor, or personal services contractor, whether before or after the commencement of any such proceeding; and

(B)

includes—

(i)

administrative and clerical expenses;

(ii)

the cost of legal services, including legal services performed by an employee of the contractor or subcontractor, or personal services contractor;

(iii)

the cost of the services of accountants and consultants retained by the contractor or subcontractor, or personal services contractor; and

(iv)

the pay of directors, officers, and employees of the contractor or subcontractor, or personal services contractor for time devoted by such directors, officers, and employees to such proceeding.

(2)

Penalty.—

The term “penalty” does not include restitution, reimbursement, or compensatory damages.

(3)

Proceedings.—

The term “proceeding” includes an investigation.

(b)

In General.—

Except as otherwise provided in this section, costs incurred by a contractor or subcontractor, or personal services contractor in connection with any criminal, civil, or administrative proceeding commenced by the United States, by a State, or by a contractor or subcontractor, or personal services contractor employee submitting a complaint under section 4701 of this title are not allowable as reimbursable costs under a covered contract, subcontract, or personal services contract if the proceeding—

(1)

relates to a violation of, or failure to comply with, a Federal or State statute or regulation or to any other activity described in section 4701(a)(1) of this title; and

(2)

results in a disposition described in subsection (c).

(c)

Covered Dispositions.—

A disposition referred to in subsection (b)(2) is any of the following:

(1)

In the case of a criminal proceeding, a conviction (including a conviction pursuant to a plea of nolo contendere) by reason of the violation or failure referred to in subsection (b).

(2)

In the case of a civil or administrative proceeding involving an allegation of fraud or similar misconduct, a determination of contractor or subcontractor, or personal services contractor liability on the basis of the violation or failure referred to in subsection (b).

(3)

In the case of any civil or administrative proceeding, the imposition of a monetary penalty or an order to take corrective action under section 4701 of this title by reason of the violation or failure referred to in subsection (b).

(4)

A final decision—

(A)

to debar or suspend the contractor or subcontractor, or personal services contractor;

(B)

to rescind or void the contract, subcontract, or personal services contract; or

(C)

to terminate the contract, subcontract, or personal services contract for default;

by reason of the violation or failure referred to in subsection (b).

(5)

A disposition of the proceeding by consent or compromise if such action could have resulted in a disposition described in paragraphs (1), (2), (3), or (4).

(d)

Costs Allowed by Settlement Agreement in Proceeding Commenced by United States.—

In the case of a proceeding referred to in subsection (b) that is commenced by the United States and is resolved by consent or compromise pursuant to an agreement entered into by a contractor or subcontractor, or personal services contractor and the United States, the costs incurred by the contractor or subcontractor, or personal services contractor in connection with such proceeding that are otherwise not allowable as reimbursable costs under such subsection may be allowed to the extent specifically provided in such agreement.

(e)

Costs Specifically Authorized in Proceeding Commenced by State.—

In the case of a proceeding referred to in subsection (b) that is commenced by a State, the head of the agency or Secretary of the military department concerned that awarded the covered contract, subcontract, or personal services contract involved in the proceeding may allow the costs incurred by the contractor or subcontractor, or personal services contractor in connection with such proceeding as reimbursable costs if the agency head or Secretary determines, in accordance with the Federal Acquisition Regulation, that the costs were incurred as a result of (1) a specific term or condition of the contract, subcontract, or personal services contract, or (2) specific written instructions of the agency or military department.

(f)

Other Allowable Costs.—

(1)

In general.—

Except as provided in paragraph (3), costs incurred by a contractor or subcontractor, or personal services contractor in connection with a criminal, civil, or administrative proceeding commenced by the United States or a State in connection with a covered contract, subcontract, or personal services contract may be allowed as reimbursable costs under the contract, subcontract, or personal services contract if such costs are not disallowable under subsection (b), but only to the extent provided in paragraph (2).

(2)

Amount of Allowable Costs.—

(A)

Maximum amount allowed.—

The amount of the costs allowable under paragraph (1) in any case may not exceed the amount equal to 80 percent of the amount of the costs incurred, to the extent that such costs are determined to be otherwise allowable and allocable under the Federal Acquisition Regulation.

(B)

Content of regulations.—

Regulations issued for the purpose of subparagraph (A) shall provide for appropriate consideration of—

(i)

the complexity of procurement litigation;

(ii)

generally accepted principles governing the award of legal fees in civil actions involving the United States as a party; and

(iii)

such other factors as may be appropriate.

(3)

When otherwise allowable costs are not allowable.—

In the case of a proceeding referred to in paragraph (1), contractor or subcontractor, or personal services contractor costs otherwise allowable as reimbursable costs under this subsection are not allowable if—

(A)

such proceeding involves the same contractor or subcontractor, or personal services contractor misconduct alleged as the basis of another criminal, civil, or administrative proceeding; and

(B)

the costs of such other proceeding are not allowable under subsection (b).

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.

  1. 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. § 3750

    Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (i), Jan. 1, 2021, 134 Stat. 4218, 4222

    Source evidence

    Code source credit
    Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (i), Jan. 1, 2021, 134 Stat. 4218, 4222

    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” .

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  2. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(1)(A) · 134 Stat. 3388

    1. Redesignated · 10 U.S.C. § 3750(a)

      Pub. L. 116–283, § 1832(i)(1)(A), (B), redesignated par. (6) of section 2324(k) of this title as subsec. (a) of this section

    2. Inserted · 10 U.S.C. § 3750(a)

      Pub. L. 116–283, § 1832(i)(1)(A), (B), inserted heading

    3. Substituted · 10 U.S.C. § 3750(a)

      Pub. L. 116–283, § 1832(i)(1)(A), (B), substituted “In this section” for “In this subsection” in introductory provisions

    4. Redesignated · 10 U.S.C. § 3750(a)

      Pub. L. 116–283, § 1832(i)(1)(A), (B), redesignated subpars. (B), (C), and (A) as pars. (1) to (3), respectively

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 116–283, § 1832(i)(1)(A), (B), redesignated par. (6) of section 2324(k) of this title as subsec. (a) of this section, inserted heading, substituted “In this section” for “In this subsection” in introductory provisions, and redesignated subpars. (B), (C), and (A) as pars. (1) to (3), respectively.

    Enacted provision · exact public law section
    (A) Transfer.— Paragraph (6) of Subsection (k) of section 2324 of title 10, United States Code, is transferred to section 3750 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended by striking “In this subsection” and inserting “Definitions.—In this section”.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  3. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(1)(C) · 134 Stat. 3388

    1. Inserted · 10 U.S.C. § 3750(a)(1)

      Pub. L. 116–283, § 1832(i)(1)(C), inserted heading

    2. Redesignated · 10 U.S.C. § 3750(a)(1)

      Pub. L. 116–283, § 1832(i)(1)(C), redesignated cls. (i) and (ii) and its subcls. (I) to (IV) as subpars. (A) and (B) and cls. (i) to (iv), respectively

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 116–283, § 1832(i)(1)(C), inserted heading and redesignated cls. (i) and (ii) and its subcls. (I) to (IV) as subpars. (A) and (B) and cls. (i) to (iv), respectively.

    Enacted provision · exact public law section
    (C) Amendments to new 3750(a)(1).— Paragraph (1) of such subsection, as so redesignated, is amended— (i) by inserting “Costs.—” before “The term”; (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (iii) in subparagraph (B), as so redesignated, by redesignating subclauses (I), (II), (III), and (IV) as clauses (i), (ii), (iii), and (iv), respectively.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  4. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(1)(D) · 134 Stat. 3388

    Inserted · 10 U.S.C. § 3750(a)(2); 10 U.S.C. § 3750(a)(3)

    Pub. L. 116–283, § 1832(i)(1)(D), (E), inserted heading

    Source evidence

    Code amendment note
    Subsec. (a)(2), (3). Pub. L. 116–283, § 1832(i)(1)(D), (E), inserted heading.

    Enacted provision · exact public law section
    (D) Amendment to new 3750(a)(2).— Paragraph (2) of such subsection, as so redesignated, is amended by inserting “Penalty.—” before “The term”.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  5. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(2) · 134 Stat. 3388

    1. Redesignated · 10 U.S.C. § 3750(b)

      Pub. L. 116–283, § 1832(i)(2), (3), redesignated par. (1) of subsec. (k) of section 2324 of this title as subsec. (b) of this section

    2. Inserted · 10 U.S.C. § 3750(b)

      Pub. L. 116–283, § 1832(i)(2), (3), inserted heading

    3. Substituted · 10 U.S.C. § 3750(b)

      Pub. L. 116–283, § 1832(i)(2), (3), substituted “this section” for “this subsection”

    4. Substituted · 10 U.S.C. § 3750(b)

      Pub. L. 116–283, § 1832(i)(2), (3), substituted “section 4701” for “section 2409”

    5. Redesignated · 10 U.S.C. § 3750(b)

      Pub. L. 116–283, § 1832(i)(2), (3), redesignated inline subpars. (A) and (B) as pars. (1) and (2), respectively, and reformatted text

    6. Substituted · 10 U.S.C. § 3750(b)

      Pub. L. 116–283, § 1832(i)(2), (3), substituted “in section 4701(a)(1)” for “in subparagraphs (A) through (C) of section 2409(a)(1)” in par. (2)

    7. Substituted · 10 U.S.C. § 3750(b)

      Pub. L. 116–283, § 1832(i)(2), (3), substituted “subsection (c)” for “paragraph (2)” in par. (2)

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 116–283, § 1832(i)(2), (3), redesignated par. (1) of subsec. (k) of section 2324 of this title as subsec. (b) of this section, inserted heading, substituted “this section” for “this subsection” and “section 4701” for “section 2409”, redesignated inline subpars. (A) and (B) as pars. (1) and (2), respectively, and reformatted text, and substituted “in section 4701(a)(1)” for “in subparagraphs (A) through (C) of section 2409(a)(1)” in par. (1) and “subsection (c)” for “paragraph (2)”in par. (2).

    Enacted provision · exact public law section
    (2) Transfer of paragraphs (1)-(5) of 2324(k).— Subsection (k) of section 2324 of title 10, United States Code (other than the portion transferred by paragraph (1)), is transferred to section 3750 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by paragraph (1), and amended by striking the subsection designation and heading and by redesignating paragraphs (1), (2), (3), (4), and (5) as subsections (b), (c), (d), (e), and (f), respectively.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  6. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(2) · 134 Stat. 3388

    1. Redesignated · 10 U.S.C. § 3750(c)

      Pub. L. 116–283, § 1832(i)(2), (4)(A)–(D), redesignated par. (2) of section 2324(k) of this title as subsec. (c) of this section

    2. Inserted · 10 U.S.C. § 3750(c)

      Pub. L. 116–283, § 1832(i)(2), (4)(A)–(D), inserted heading

    3. Substituted · 10 U.S.C. § 3750(c)

      Pub. L. 116–283, § 1832(i)(2), (4)(A)–(D), substituted “subsection (b)(2)” for “paragraph (1)(B)” wherever appearing

    4. Substituted · 10 U.S.C. § 3750(c)

      Pub. L. 116–283, § 1832(i)(2), (4)(A)–(D), substituted “subsection (b)” for “paragraph (1)” wherever appearing

    5. Redesignated · 10 U.S.C. § 3750(c)

      Pub. L. 116–283, § 1832(i)(2), (4)(A)–(D), redesignated subpars. (A) to (E) as pars. (1) to (5), respectively

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 116–283, § 1832(i)(2), (4)(A)–(D), redesignated par. (2) of section 2324(k) of this title as subsec. (c) of this section, inserted heading, substituted “subsection (b)(2)” for “paragraph (1)(B)” in introductory provisions, and “subsection (b)” for “paragraph (1)” wherever appearing, and redesignated subpars. (A) to (E) as pars. (1) to (5), respectively.

    Enacted provision · exact public law section
    (2) Transfer of paragraphs (1)-(5) of 2324(k).— Subsection (k) of section 2324 of title 10, United States Code (other than the portion transferred by paragraph (1)), is transferred to section 3750 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by paragraph (1), and amended by striking the subsection designation and heading and by redesignating paragraphs (1), (2), (3), (4), and (5) as subsections (b), (c), (d), (e), and (f), respectively.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  7. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(4)(E) · 134 Stat. 3388

    Substituted · 10 U.S.C. § 3750(c)(3)

    Pub. L. 116–283, § 1832(i)(4)(E), substituted “section 4701” for “section 2409”

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 116–283, § 1832(i)(4)(E), substituted “section 4701” for “section 2409”.

    Enacted provision · exact public law section
    (E) in paragraph (3), as so redesignated, by striking “section 2409” and inserting “section 4701”;

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  8. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(4)(F) · 134 Stat. 3388

    Redesignated · 10 U.S.C. § 3750(c)(4)

    Pub. L. 116–283, § 1832(i)(4)(F), redesignated cls. (i) to (iii) as subpars. (A) to (C), respectively

    Source evidence

    Code amendment note
    Subsec. (c)(4). Pub. L. 116–283, § 1832(i)(4)(F), redesignated cls. (i) to (iii) as subpars. (A) to (C), respectively.

    Enacted provision · exact public law section
    (F) in paragraph (4), as so redesignated, by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; and

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  9. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(4)(G) · 134 Stat. 3388

    Substituted · 10 U.S.C. § 3750(c)(5)

    Pub. L. 116–283, § 1832(i)(4)(G), substituted “paragraphs (1), (2), (3), or (4)” for “subparagraph (A), (B), (C), or (D)”

    Source evidence

    Code amendment note
    Subsec. (c)(5). Pub. L. 116–283, § 1832(i)(4)(G), substituted “paragraphs (1), (2), (3), or (4)” for “subparagraph (A), (B), (C), or (D)”.

    Enacted provision · exact public law section
    (G) in paragraph (5), as so redesignated, by striking “subparagraph (A), (B), (C), or (D)” and inserting “paragraphs (1), (2), (3), or (4)”.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  10. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(2) · 134 Stat. 3388

    1. Redesignated · 10 U.S.C. § 3750(d)

      Pub. L. 116–283, § 1832(i)(2), (5), redesignated par. (3) of section 2324(k) of this title as subsec. (d) of this section

    2. Inserted · 10 U.S.C. § 3750(d)

      Pub. L. 116–283, § 1832(i)(2), (5), inserted heading

    3. Substituted · 10 U.S.C. § 3750(d)

      Pub. L. 116–283, § 1832(i)(2), (5), substituted “subsection (b)” for “paragraph (1)”

    4. Substituted · 10 U.S.C. § 3750(d)

      Pub. L. 116–283, § 1832(i)(2), (5), substituted “such subsection” for “such paragraph”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 116–283, § 1832(i)(2), (5), redesignated par. (3) of section 2324(k) of this title as subsec. (d) of this section, inserted heading, and substituted “subsection (b)” for “paragraph (1)” and “such subsection” for “such paragraph”.

    Enacted provision · exact public law section
    (2) Transfer of paragraphs (1)-(5) of 2324(k).— Subsection (k) of section 2324 of title 10, United States Code (other than the portion transferred by paragraph (1)), is transferred to section 3750 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by paragraph (1), and amended by striking the subsection designation and heading and by redesignating paragraphs (1), (2), (3), (4), and (5) as subsections (b), (c), (d), (e), and (f), respectively.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  11. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(2) · 134 Stat. 3388

    1. Redesignated · 10 U.S.C. § 3750(e)

      Pub. L. 116–283, § 1832(i)(2), (6), redesignated par. (4) of section 2324(k) of this title as subsec. (e) of this section

    2. Inserted · 10 U.S.C. § 3750(e)

      Pub. L. 116–283, § 1832(i)(2), (6), inserted heading

    3. Substituted · 10 U.S.C. § 3750(e)

      Pub. L. 116–283, § 1832(i)(2), (6), substituted “subsection (b)” for “paragraph (1)”

    4. Substituted · 10 U.S.C. § 3750(e)

      Pub. L. 116–283, § 1832(i)(2), (6), substituted “(1)” for “(A)”

    5. Substituted · 10 U.S.C. § 3750(e)

      Pub. L. 116–283, § 1832(i)(2), (6), substituted “(2)” for “(B)”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 116–283, § 1832(i)(2), (6), redesignated par. (4) of section 2324(k) of this title as subsec. (e) of this section, inserted heading, and substituted “subsection (b)” for “paragraph (1)”, “(1)” for “(A)”, and “(2)” for “(B)”.

    Enacted provision · exact public law section
    (2) Transfer of paragraphs (1)-(5) of 2324(k).— Subsection (k) of section 2324 of title 10, United States Code (other than the portion transferred by paragraph (1)), is transferred to section 3750 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by paragraph (1), and amended by striking the subsection designation and heading and by redesignating paragraphs (1), (2), (3), (4), and (5) as subsections (b), (c), (d), (e), and (f), respectively.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  12. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(2) · 134 Stat. 3388

    1. Redesignated · 10 U.S.C. § 3750(f)

      Pub. L. 116–283, § 1832(i)(2), (7)(A), (B), redesignated par. (5) of section 2324(k) of this title as subsec. (f) of this section

    2. Inserted · 10 U.S.C. § 3750(f)

      Pub. L. 116–283, § 1832(i)(2), (7)(A), (B), inserted heading

    3. Redesignated · 10 U.S.C. § 3750(f)

      Pub. L. 116–283, § 1832(i)(2), (7)(A), (B), redesignated subpars. (A) to (C) as pars. (1) to (3), respectively, and realigned margins

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 116–283, § 1832(i)(2), (7)(A), (B), redesignated par. (5) of section 2324(k) of this title as subsec. (f) of this section, inserted heading, and redesignated subpars. (A) to (C) as pars. (1) to (3), respectively, and realigned margins.

    Enacted provision · exact public law section
    (2) Transfer of paragraphs (1)-(5) of 2324(k).— Subsection (k) of section 2324 of title 10, United States Code (other than the portion transferred by paragraph (1)), is transferred to section 3750 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by paragraph (1), and amended by striking the subsection designation and heading and by redesignating paragraphs (1), (2), (3), (4), and (5) as subsections (b), (c), (d), (e), and (f), respectively.

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  13. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(7)(A) · 134 Stat. 3388

    1. Inserted · 10 U.S.C. § 3750(f)(1)

      Pub. L. 116–283, § 1832(i)(7)(A), (C), inserted heading

    2. Substituted · 10 U.S.C. § 3750(f)(1)

      Pub. L. 116–283, § 1832(i)(7)(A), (C), substituted “paragraph (3)” for “subparagraph (C)”

    3. Substituted · 10 U.S.C. § 3750(f)(1)

      Pub. L. 116–283, § 1832(i)(7)(A), (C), substituted “subsection (b)” for “paragraph (1)”

    4. Substituted · 10 U.S.C. § 3750(f)(1)

      Pub. L. 116–283, § 1832(i)(7)(A), (C), substituted “paragraph (2)” for “subparagraph (B)”

    Source evidence

    Code amendment note
    Subsec. (f)(1). Pub. L. 116–283, § 1832(i)(7)(A), (C), inserted heading and substituted “paragraph (3)” for “subparagraph (C)”, “subsection (b)” for “paragraph (1)”, and “paragraph (2)” for “subparagraph (B)”.

    Enacted provision · exact public law section
    (A) by striking “(A) Except as provided in” and inserting “ Other Allowable Costs.— “(1) In general.— Except as provided in” ;

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  14. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(7)(D)(i) · 134 Stat. 3388

    1. Inserted · 10 U.S.C. § 3750(f)(2)

      Pub. L. 116–283, § 1832(i)(7)(D)(i), (ii), inserted heading

    2. Redesignated · 10 U.S.C. § 3750(f)(2)

      Pub. L. 116–283, § 1832(i)(7)(D)(i), (ii), redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively

    Source evidence

    Code amendment note
    Subsec. (f)(2). Pub. L. 116–283, § 1832(i)(7)(D)(i), (ii), inserted heading and redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively.

    Enacted provision · exact public law section
    (i) by striking “(i) The amount of” and inserting “ Amount of Allowable Costs.— “(A) Maximum amount allowed.— The amount of” ;

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  15. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(7)(D)(i) · 134 Stat. 3388

    1. Inserted · 10 U.S.C. § 3750(f)(2)(A)

      Pub. L. 116–283, § 1832(i)(7)(D)(i), (iii), inserted heading

    2. Substituted · 10 U.S.C. § 3750(f)(2)(A)

      Pub. L. 116–283, § 1832(i)(7)(D)(i), (iii), substituted “paragraph (1)” for “subparagraph (A)”

    Source evidence

    Code amendment note
    Subsec. (f)(2)(A). Pub. L. 116–283, § 1832(i)(7)(D)(i), (iii), inserted heading and substituted “paragraph (1)” for “subparagraph (A)”.

    Enacted provision · exact public law section
    (i) by striking “(i) The amount of” and inserting “ Amount of Allowable Costs.— “(A) Maximum amount allowed.— The amount of” ;

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  16. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(7)(D)(iv) · 134 Stat. 3388

    1. Inserted · 10 U.S.C. § 3750(f)(2)(B)

      Pub. L. 116–283, § 1832(i)(7)(D)(iv), (E), inserted heading

    2. Substituted · 10 U.S.C. § 3750(f)(2)(B)

      Pub. L. 116–283, § 1832(i)(7)(D)(iv), (E), substituted “subparagraph (A)” for “clause (i)”

    3. Inserted · 10 U.S.C. § 3750(f)(2)(B)

      Pub. L. 116–283, § 1832(i)(7)(D)(iv), (E), inserted dash after “consideration of”, and reorganized remainder of existing text into designated cls. (i) to (iii)

    Source evidence

    Code amendment note
    Subsec. (f)(2)(B). Pub. L. 116–283, § 1832(i)(7)(D)(iv), (E), inserted heading, substituted “subparagraph (A)” for “clause (i)”, inserted dash after “consideration of”, and reorganized remainder of existing text into designated cls. (i) to (iii).

    Enacted provision · exact public law section
    (iv) in subparagraph (B), as redesignated by clause (ii)— (I) by inserting “Content of regulations.—” before “Regulations issued”; (II) by striking “clause (i)” and inserting “subparagraph (A)”; (III) by striking “consideration of the complexity of” and inserting “consideration of— “(i) the complexity of” ; (IV) by striking “procurement litigation, generally accepted” and inserting “procurement litigation; “(ii) generally accepted” ; and

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

  17. William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

    Pub. L. 116–283 § 1832(i)(7)(F) · 134 Stat. 3388

    1. Amended · 10 U.S.C. § 3750(f)(3)

      Pub. L. 116–283, § 1832(i)(7)(F), as amended by Pub. L. 117–81, § 1701(b)(11)

    2. Inserted · 10 U.S.C. § 3750(f)(3)

      Pub. L. 116–283, § 1832(i)(7)(F), as inserted heading

    3. Substituted · 10 U.S.C. § 3750(f)(3)

      Pub. L. 116–283, § 1832(i)(7)(F), as substituted “paragraph (1)” for “subparagraph (A)”

    4. Substituted · 10 U.S.C. § 3750(f)(3)

      Pub. L. 116–283, § 1832(i)(7)(F), as substituted “under this subsection” for “under this paragraph”

    5. Inserted · 10 U.S.C. § 3750(f)(3)

      Pub. L. 116–283, § 1832(i)(7)(F), as inserted dash after “not allowable if”

    6. Redesignated · 10 U.S.C. § 3750(f)(3)

      Pub. L. 116–283, § 1832(i)(7)(F), as redesignated inline cls. (i) and (ii) as subpars. (A) and (B), respectively, and reformatted text, and, in subpar. (B)

    7. Substituted · 10 U.S.C. § 3750(f)(3)

      Pub. L. 116–283, § 1832(i)(7)(F), as substituted “subsection (b)” for “paragraph (1)”

    Source evidence

    Code amendment note
    Subsec. (f)(3). Pub. L. 116–283, § 1832(i)(7)(F), as amended by Pub. L. 117–81, § 1701(b)(11), inserted heading, substituted “paragraph (1)” for “subparagraph (A)” and “under this subsection” for “under this paragraph”, inserted dash after “not allowable if”, redesignated inline cls. (i) and (ii) as subpars. (A) and (B), respectively, and reformatted text, and, in subpar. (B), substituted “subsection (b)” for “paragraph (1)”.

    Enacted provision · exact public law section
    (F) in paragraph (3), as redesignated by subparagraph (B)— (i) by inserting “When otherwise allowable costs are not allowable.—” before “In the case of”; (ii) by striking “subparagraph (A)” and inserting “paragraph (1)”; (iii) by striking “under this paragraph” and inserting “under this subsection”; (iv) by striking “not allowable if (i) such proceeding” and inserting “not allowable if— “(A) such proceeding” ; and (v) by striking “proceeding, and (ii) the costs” and inserting “proceeding; and “(B) the costs” .

    Effective date note
    Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

53 of 53 references resolved to an enrolled provision

Editorial Notes

Codification

The text of subsec. (k) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(i), was based on Pub. L. 100–700, § 8(b), , 102 Stat. 4636; Pub. L. 101–189, div. A, title VIII, § 853(a)(1)(A), (b)(3), , 103 Stat. 1518; Pub. L. 103–355, title II, § 2101(a)(11), , 108 Stat. 3308; Pub. L. 112–239, div. A, title VIII, § 827(g), , 126 Stat. 1836; Pub. L. 114–261, § 1(b)(1), , 130 Stat. 1362.

Prior Provisions

Prior sections 3750 to 3756 were renumbered sections 7280 to 7286 of this title, respectively.

Amendments

2021—Subsec. (a). Pub. L. 116–283, § 1832(i)(1)(A), (B), redesignated par. (6) of section 2324(k) of this title as subsec. (a) of this section, inserted heading, substituted “In this section” for “In this subsection” in introductory provisions, and redesignated subpars. (B), (C), and (A) as pars. (1) to (3), respectively.

Subsec. (a)(1). Pub. L. 116–283, § 1832(i)(1)(C), inserted heading and redesignated cls. (i) and (ii) and its subcls. (I) to (IV) as subpars. (A) and (B) and cls. (i) to (iv), respectively.

Subsec. (a)(2), (3). Pub. L. 116–283, § 1832(i)(1)(D), (E), inserted heading.

Subsec. (b). Pub. L. 116–283, § 1832(i)(2), (3), redesignated par. (1) of subsec. (k) of section 2324 of this title as subsec. (b) of this section, inserted heading, substituted “this section” for “this subsection” and “section 4701” for “section 2409”, redesignated inline subpars. (A) and (B) as pars. (1) and (2), respectively, and reformatted text, and substituted “in section 4701(a)(1)” for “in subparagraphs (A) through (C) of section 2409(a)(1)” in par. (1) and “subsection (c)” for “paragraph (2)”in par. (2).

Subsec. (c). Pub. L. 116–283, § 1832(i)(2), (4)(A)–(D), redesignated par. (2) of section 2324(k) of this title as subsec. (c) of this section, inserted heading, substituted “subsection (b)(2)” for “paragraph (1)(B)” in introductory provisions, and “subsection (b)” for “paragraph (1)” wherever appearing, and redesignated subpars. (A) to (E) as pars. (1) to (5), respectively.

Subsec. (c)(3). Pub. L. 116–283, § 1832(i)(4)(E), substituted “section 4701” for “section 2409”.

Subsec. (c)(4). Pub. L. 116–283, § 1832(i)(4)(F), redesignated cls. (i) to (iii) as subpars. (A) to (C), respectively.

Subsec. (c)(5). Pub. L. 116–283, § 1832(i)(4)(G), substituted “paragraphs (1), (2), (3), or (4)” for “subparagraph (A), (B), (C), or (D)”.

Subsec. (d). Pub. L. 116–283, § 1832(i)(2), (5), redesignated par. (3) of section 2324(k) of this title as subsec. (d) of this section, inserted heading, and substituted “subsection (b)” for “paragraph (1)” and “such subsection” for “such paragraph”.

Subsec. (e). Pub. L. 116–283, § 1832(i)(2), (6), redesignated par. (4) of section 2324(k) of this title as subsec. (e) of this section, inserted heading, and substituted “subsection (b)” for “paragraph (1)”, “(1)” for “(A)”, and “(2)” for “(B)”.

Subsec. (f). Pub. L. 116–283, § 1832(i)(2), (7)(A), (B), redesignated par. (5) of section 2324(k) of this title as subsec. (f) of this section, inserted heading, and redesignated subpars. (A) to (C) as pars. (1) to (3), respectively, and realigned margins.

Subsec. (f)(1). Pub. L. 116–283, § 1832(i)(7)(A), (C), inserted heading and substituted “paragraph (3)” for “subparagraph (C)”, “subsection (b)” for “paragraph (1)”, and “paragraph (2)” for “subparagraph (B)”.

Subsec. (f)(2). Pub. L. 116–283, § 1832(i)(7)(D)(i), (ii), inserted heading and redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively.

Subsec. (f)(2)(A). Pub. L. 116–283, § 1832(i)(7)(D)(i), (iii), inserted heading and substituted “paragraph (1)” for “subparagraph (A)”.

Subsec. (f)(2)(B). Pub. L. 116–283, § 1832(i)(7)(D)(iv), (E), inserted heading, substituted “subparagraph (A)” for “clause (i)”, inserted dash after “consideration of”, and reorganized remainder of existing text into designated cls. (i) to (iii).

Subsec. (f)(3). Pub. L. 116–283, § 1832(i)(7)(F), as amended by Pub. L. 117–81, § 1701(b)(11), inserted heading, substituted “paragraph (1)” for “subparagraph (A)” and “under this subsection” for “under this paragraph”, inserted dash after “not allowable if”, redesignated inline cls. (i) and (ii) as subpars. (A) and (B), respectively, and reformatted text, and, in subpar. (B), substituted “subsection (b)” for “paragraph (1)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.

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

Pub. L. 100–700, § 8(d), , 102 Stat. 4638, provided that:

“The regulations necessary for the implementation of section 306(e) of the Federal Property and Administrative Services Act of 1949 [now 41 U.S.C. 4304] (as added by subsection (a)) and section 2324(k)(5) of title 10, United States Code [see 10 U.S.C. 3750(f)] (as added by subsection (b))—

“(1)

shall be prescribed not later than 120 days after the date of the enactment of this Act []; and

“(2)

shall apply to contracts entered into more than 30 days after the date on which such regulations are issued.”

Credits

2021 · 2 acts
  1. 2021Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (i), , 134 Stat. 4218, 4222
  2. 2021Pub. L. 117–81, div. A, title XVII, § 1701(b)(11), , 135 Stat. 2134.
Show as published

(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (i), , 134 Stat. 4218, 4222; Pub. L. 117–81, div. A, title XVII, § 1701(b)(11), , 135 Stat. 2134.)

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USLM identifier /us/usc/t10/s3750