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10 U.S.C. § 3243 — Encouragement of new competitors: qualification requirement

Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3243 — Encouragement of new competitors: qualification requirement

**(a) Qualification Requirement Defined.—** In this section, the term “qualification requirement” means a requirement for testing or other quality assurance demonstration that must be completed by an offeror before award of a contract. **(b) Actions Before Establishing Qualification Requirement.—** Except as provided in subsection (c), the head of the agency shall, before establishing a qualification requirement— (1) prepare a written justification stating the necessity for establishing the qualification requirement and specify why the qualification requirement must be demonstrated before contract award; (2) specify in writing and make available to a potential offeror upon request all requirements which a prospective offeror, or its product, must satisfy in order to become qualified, such requirements to be limited to those least restrictive to meet the purposes necessitating the establishment of the qualification requirement; (3) specify an estimate of the costs of testing and evaluation likely to be incurred by a potential offeror in order to become qualified; (4) ensure that a potential offeror is provided, upon request and on a reimbursable basis, a prompt opportunity to demonstrate its ability to meet the standards specified for qualification using qualified personnel and facilities of the agency concerned or of another agency obtained through interagency agreement, or under contract, or other methods approved by the agency (including use of approved testing and evaluation services not provided under contract to the agency); (5) if testing and evaluation services are provided under contract to the agency for the purposes of paragraph (4), provide to the extent possible that such services be provided by a contractor who is not expected to benefit from an absen

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Source location: Title 10, Chapter 223, § 3243; chapter-223-other-provisions-relating-to-planning-and-solicitation-generally.md

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**(a) Qualification Requirement Defined.—** In this section, the term “qualification requirement” means a requirement for testing or other quality assurance demonstration that must be completed by an offeror before award of a contract. **(b) Actions Before Establishing Qualification Requirement.—** Except as provided in subsection (c), the head of the agency shall, before establishing a qualification requirement— (1) prepare a written justification stating the necessity for establishing the qualification requirement and specify why the qualification requirement must be demonstrated before contract award; (2) specify in writing and make available to a potential offeror upon request all requirements which a prospective offeror, or its product, must satisfy in order to become qualified, such requirements to be limited to those least restrictive to meet the purposes necessitating the establishment of the qualification requirement; (3) specify an estimate of the costs of testing and evaluation likely to be incurred by a potential offeror in order to become qualified; (4) ensure that a potential offeror is provided, upon request and on a reimbursable basis, a prompt opportunity to demonstrate its ability to meet the standards specified for qualification using qualified personnel and facilities of the agency concerned or of another agency obtained through interagency agreement, or under contract, or other methods approved by the agency (including use of approved testing and evaluation services not provided under contract to the agency); (5) if testing and evaluation services are provided under contract to the agency for the purposes of paragraph (4), provide to the extent possible that such services be provided by a contractor who is not expected to benefit from an absence of additional qualified sources and who shall be required in such contract to adhere to any restriction on technical data asserted by the potential offeror seeking qualification; and (6) ensure that a potential offeror seeking qualification is promptly informed as to whether qualification is attained and, in the event qualification is not attained, is promptly furnished specific information why qualification was not attained. **(c) Applicability, Waiver Authority, and Referral of Offers.—** (1) **Applicability.—** — Subsection (b) does not apply with respect to a qualification requirement established by statute or administrative action before October 19, 1984, unless such requirement is a qualified products list. (2) **Waiver Authority.—** (A) *Submission of determination of unreasonableness.—* — Except as provided in subparagraph (C), if it is unreasonable to specify the standards for qualification which a prospective offeror or its product must satisfy, a determination to that effect shall be submitted to the advocate for competition of the procuring activity responsible for the purchase of the item subject to the qualification requirement. (B) *Authority to grant waiver.—* — After considering any comments of the advocate for competition reviewing such determination, the head of the purchasing office may waive the requirements of clauses (2) through (6) of subsection (b) for up to two years with respect to the item subject to the qualification requirement. (C) *Inapplicability to qualified products list.—* — The waiver authority provided in this paragraph does not apply with respect to a qualified products list. (3) **Submission and consideration of offer not to be denied in certain cases.—** — A potential offeror may not be denied the opportunity to submit and have considered an offer for a contract solely because the potential offeror (A) is not on a qualified bidders list, qualified manufacturers list, or qualified products list, or (B) has not been identified as meeting a qualification requirement established after October 19, 1984, if the potential offeror can demonstrate to the satisfaction of the contracting officer (or, in the case of a contract for the procurement of an aviation critical safety item or ship critical safety item, the head of the design control activity for such item) that the potential offeror or its product meets the standards established for qualification or can meet such standards before the date specified for award of the contract. (4) **Referral to small business administration.—** — Nothing contained in this subsection requires the referral of an offer to the Small Business Administration pursuant to section 8(b)(7) of the Small Business Act ([15 U.S.C. 637(b)(7)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637/b/7&num=0&edition=prelim)) if the basis for the referral is a challenge by the offeror to either the validity of the qualification requirement or the offeror’s compliance with such requirement. (5) **Delay of procurement not required.—** — The head of an agency need not delay a proposed procurement in order to comply with subsection (b) or in order to provide a potential offeror with an opportunity to demonstrate its ability to meet the standards specified for qualification. (6) **Requirements before enforcement of certain lists.—** — The requirements of subsection (b) also apply before enforcement of any qualified products list, qualified manufacturers list, or qualified bidders list. **(d) Fewer Than 2 Actual Manufacturers.—** (1) **Solicitation and testing of additional sources or products.—** — If the number of qualified sources or qualified products available to compete actively for an anticipated future requirement is fewer than two actual manufacturers or the products of two actual manufacturers, respectively, the head of the agency concerned shall— (A) periodically publish notice in the Commerce Business Daily soliciting additional sources or products to seek qualification, unless the contracting officer determines that such publication would compromise national security; and (B) bear the cost of conducting the specified testing and evaluation (excluding the costs associated with producing the item or establishing the production, quality control, or other system to be tested and evaluated) for a small business concern or a product manufactured by a small business concern which has met the standards specified for qualification and which could reasonably be expected to compete for a contract for that requirement. (2) **Certification required.—** — The head of an agency shall require a prospective contractor requesting the United States to bear testing and evaluation costs under paragraph (1)(B) to certify as to its status as a small business concern under section 3 of the Small Business Act ([15 U.S.C. 632](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section632&num=0&edition=prelim)). **(e) Advanced Manufacturing Crisis Qualification Frameworks.—** The head of the agency shall establish a process to streamline and expedite the qualification of advanced manufacturing sources, processes, or products prior to or during wartime or upon activation of the Civil Reserve Manufacturing Network (as defined in section 1832 11 See References in Text note below. of National Defense Authorization Act for Fiscal Year 2026), that addresses materials, systems, and processes using a risk framework suitable for wartime or during periods in which the CRMN is activated. **(f) Examination and Revalidation of Qualification Requirement.—** Within seven years after the establishment of a qualification requirement under subsection (b) or within seven years following an agency’s enforcement of a qualified products list, qualified manufacturers list, or qualified bidders list, any such qualification requirement shall be examined and revalidated in accordance with the requirements of subsection (b). The preceding sentence does not apply in the case of a qualification requirement for which a waiver is in effect under subsection (c)(2). **(g) Restriction on Enforcement.—** Except in an emergency as determined by the head of the agency, whenever the head of the agency determines not to enforce a qualification requirement for a solicitation, the agency may not thereafter enforce that qualification requirement unless the agency complies with the requirements of subsection (b). **(h) Definitions.—** In this section: (1) The term “aviation critical safety item” means a part, an assembly, installation equipment, launch equipment, recovery equipment, or support equipment for an aircraft or aviation weapon system if the part, assembly, or equipment contains a characteristic any failure, malfunction, or absence of which could cause a catastrophic or critical failure resulting in the loss of or serious damage to the aircraft or weapon system, an unacceptable risk of personal injury or loss of life, or an uncommanded engine shutdown that jeopardizes safety. (2) The term “ship critical safety item” means any ship part, assembly, or support equipment containing a characteristic the failure, malfunction, or absence of which could cause a catastrophic or critical failure resulting in loss of or serious damage to the ship or unacceptable risk of personal injury or loss of life. (3) The term “design control activity”, with respect to an aviation critical safety item or ship critical safety item, means the systems command of a military department that is specifically responsible for ensuring the airworthiness of an aviation system or equipment, or the seaworthiness of a ship or ship equipment, in which such item is to be used.

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 632 — Definitions

**(a) Small business concerns** (1) **In general** — For the purposes of this chapter, a small-business concern, including but not limited to enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries, shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation. (2) **Establishment of size standards** (A) *In general* — In addition to the criteria specified in paragraph (1) and subject to the requirements specified under subparagraph (C), the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for the purposes of this chapter or any other Act. (B) *Additional criteria* — The standards described in paragraph (1) may utilize number of employees, dollar volume of business, net worth, net income, a combination thereof, or other appropriate factors. (C) *Requirements* — Unless specifically authorized by statute, no Federal department (including the Administration when acting pursuant to subparagraph (A)) or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard— (i) is proposed after an opportunity for public notice and comment; (ii) provides for determining— (I) the size of a manufacturing concern as measured by the manufacturing concern’s average employment based upon employment during each of the manufacturing concern’s pay periods for the preceding 24 months; (II) the size of a business concern providing services on the basis of the annual average gross receipts of the business concern over

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3001 — Defense acquisition system; element of the defense acquisition system

**(a) Defense Acquisition System.—** In this part, the term “defense acquisition system” means— (1) the workforce engaged in carrying out the acquisition of property and services for the Department of Defense; (2) the management structure responsible for directing and overseeing the acquisition of property and services for the Department of Defense; and (3) the statutory, regulatory, and policy framework that guides the acquisition of property and services for the Department of Defense. **(b) Element of the Defense Acquisition System.—** In this part, the term “element of the defense acquisition system” means an organization that— (1) employs members of the acquisition workforce; (2) carries out acquisition functions; and (3) focuses primarily on acquisition. **(c) Acquisition.—** In this part, the term “acquisition” has the meaning provided in [section 131 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section131&num=0&edition=prelim).

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 4811 — National security strategy for national technology and industrial base

**(a) National Security Strategy for National Technology and Industrial Base.—** The Secretary of Defense shall develop a national security strategy for the national technology and industrial base. The Secretary shall submit such strategy to Congress as an integrated part of the report submitted under [section 4814 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4814&num=0&edition=prelim). Such strategy shall be based on a prioritized assessment of risks and challenges to the defense supply chain and shall ensure that the national technology and industrial base is capable of achieving the following national security objectives: (1) Supplying, equipping, and supporting the force structure of the armed forces that is necessary to achieve— (A) the objectives set forth in the national security strategy report submitted to Congress by the President pursuant to section 108 of the National Security Act of 1947 ([50 U.S.C. 3043](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section3043&num=0&edition=prelim)); (B) the policy guidance of the Secretary of Defense provided pursuant to [section 113(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section113/g&num=0&edition=prelim); and (C) the future-years defense program submitted to Congress by the Secretary of Defense pursuant to [section 221 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section221&num=0&edition=prelim). (2) Sustaining production, maintenance, repair, logistics, and other activities in support of military operations of various durations and intensity. (3) Maintaining advanced research and development activities to provide the armed forces with systems capable of

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 2319 — Renumbered § 3243]

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3252 — Requirements for information relating to supply chain risk

**(a) Authority.—** Subject to subsection (b), the head of a covered agency may— (1) carry out a covered procurement action; and (2) limit, notwithstanding any other provision of law, in whole or in part, the disclosure of information relating to the basis for carrying out a covered procurement action. **(b) Determination and Notification.—** The head of a covered agency may exercise the authority provided in subsection (a) only after— (1) consulting with procurement or other relevant officials of the covered agency; (2) making a determination in writing, in unclassified or classified form, that— (A) use of the authority in subsection (a)(1) is necessary to protect national security by reducing supply chain risk; (B) less intrusive measures are not reasonably available to reduce such supply chain risk; and (C) in a case where the head of the covered agency plans to limit disclosure of information under subsection (a)(2), the risk to national security due to the disclosure of such information outweighs the risk due to not disclosing such information; and (3) providing a classified or unclassified notice of the determination made under paragraph (2) to the appropriate congressional committees, which notice shall include— (A) a summary of the risk assessment that serves as the basis for the written determination required by paragraph (2); and (B) a summary of the basis for the determination, including a discussion of less intrusive measures that were considered and why they were not reasonably available to reduce supply chain risk. **(c) Limitation on Disclosure.—** If the head of a covered agency has exercised the authority provided in subsection (a)(2) to limit disclosure of information— (1) no action undertaken by the agency head under such author

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3243 — Encouragement of new competitors: quali-

Page 2453 TITLE 10—ARMED FORCES § 3243 for a contract for supplies shall, if practicable, include a provision inviting each offeror re- sponding 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 rec- ommend 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 rec- ommended quantity. (Added Pub. L. 98–525, title XII, § 1233(a), Oct. 19, 1984, 98 Stat. 2600, § 2384a; renumbered § 3242 and amended Pub. L. 116–283, div. A, title XVIII, § 1813(c), Jan. 1, 2021, 134 Stat. 4179; Pub. L. 117–81, div. A, title XVII, § 1701(b)(5), Dec. 27, 2021, 135 Stat. 2133.) Editorial Notes AMENDMENTS 2021—Pub. L. 116–283, § 1813(c), renumbered section 2384a of this title as this section. Subsec. (a). Pub. L. 116–283, § 1813(c)(1), as amended by Pub. L. 117–81, § 1701(b)(5), inserted heading, in par. (1), substituted ‘‘section 3063’’ for ‘‘section 2303(a)’’ and re- formatted subpars. (A) and (B) to add line breaks before each subpar. designation, and, in par. (2), realigned margin. Subsec. (b). Pub. L. 116–283, § 1813(c)(2), inserted head- ing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–81 applicable as if in- cluded 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 note below. Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing la

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 632 — Definitions

Page 769 TITLE 15—COMMERCE AND TRADE § 632 Editorial Notes REFERENCES IN TEXT This subtitle, referred to in subsec. (a), is subtitle D (§§ 141–147) of title I of div. K of Pub. L. 108–447, Dec. 8, 2004, 118 Stat. 3453, which enacted this section, amended sections 637, 648, 657b, and 657c of this title, enacted provisions set out as note under section 637 of this title, and amended provisions set out as a note under section 657b of this title. For complete classification of subtitle D to the Code, see Tables. CODIFICATION Section was enacted as part of the Small Business Reauthorization and Manufacturing Assistance Act of 2004, and also as part of the Consolidated Appropria- tions Act, 2005, and not as part of the Small Business Act which comprises this chapter. § 632. Definitions (a) Small business concerns (1) In general For the purposes of this chapter, a small- business concern, including but not limited to enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries, shall be deemed to be one which is independ- ently owned and operated and which is not dominant in its field of operation. (2) Establishment of size standards (A) In general In addition to the criteria specified in paragraph (1) and subject to the require- ments specified under subparagraph (C), the Administrator may specify detailed defini- tions or standards by which a business con- cern may be determined to be a small busi- ness concern for the purposes of this chapter or any other Act. (B) Additional criteria The standards described in paragraph (1) may utilize number of employees, dollar vol- ume of business, net worth, net income, a combinatio

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 637 — Additional powers

**(a) Procurement contracts; subcontracts to disadvantaged small business concerns; performance bonds; contract negotiations; definitions; eligibility; determinations; publication; recruitment; construction subcontracts; annual estimates; Indian tribes** (1) It shall be the duty of the Administration and it is hereby empowered, whenever it determines such action is necessary or appropriate— (A) to enter into contracts with the United States Government and any department, agency, or officer thereof having procurement powers obligating the Administration to furnish articles, equipment, supplies, services, or materials to the Government or to perform construction work for the Government. In any case in which the Administration certifies to any officer of the Government having procurement powers that the Administration is competent and responsible to perform any specific Government procurement contract to be let by any such officer, such officer shall be authorized in his discretion to let such procurement contract to the Administration upon such terms and conditions as may be agreed upon between the Administration and the procurement officer. Whenever the Administration and such procurement officer fail to agree, the matter shall be submitted for determination to the Secretary or the head of the appropriate department or agency by the Administrator. Not later than 5 days from the date the Administration is notified of a procurement officer’s adverse decision, the Administration may notify the contracting officer of the intent to appeal such adverse decision, and within 15 days of such date the Administrator shall file a written request for a reconsideration of the adverse decision with the Secretary of the department or agency head. For the purposes of this subparagrap

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 637 — Additional powers

Page 890 TITLE 15—COMMERCE AND TRADE § 637 mortgage obligations, payments on covered lease ob- ligations, or covered utility payments, as the case may be.’’ Subsec. (i). Pub. L. 116–260, div. N, § 276(a)(1), amended subsec. (i) generally. Prior to amendment, text read as follows: ‘‘For purposes of title 26, any amount which (but for this subsection) would be includible in gross in- come of the eligible recipient by reason of forgiveness described in subsection (b) shall be excluded from gross income.’’ Subsec. (l). Pub. L. 116–260, div. N, § 307(a)(3), added subsec. (l). Pub. L. 116–260, div. N, § 306(1), struck out subsec. (l). Text read as follows: ‘‘An eligible recipient that re- ceived a covered loan before June 5, 2020, may elect for the covered period applicable to such covered loan to end on the date that is 8 weeks after the date of the origination of such covered loan.’’ Pub. L. 116–142, § 3(b)(3), added subsec. (l). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–2 applicable only with re- spect to applications for forgiveness of covered loans made under pars. (36) or (37) of section 636(a) of this title received on or after Mar. 11, 2021, see section 5001(c)(3) of Pub. L. 117–2, set out as a note under sec- tion 636 of this title. EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. N, title II, § 276(a)(2), Dec. 27, 2020, 134 Stat. 1979, provided that: ‘‘The amendment made by this subsection [amending this section] shall apply to taxable years ending after the date of the enactment of the CARES Act [Mar. 27, 2020].’’ Amendment by section 304(b)(1)(A), (B), (2) of div. N of Pub. L. 116–260 effective as if included in Pub. L. 116–136 and applicable to any loan made pursuant to secti

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