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10 U.S.C. § 2399 — Renumbered § 4171]
Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
#### Prior Provisions
A prior section 2399, added Pub. L. 97–295, § 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to limitation on availability of appropriations to reimburse a contractor for the cost of commercial insurance, was repealed by Pub.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, § 1(f)(2)(B), July 19, 1988, 102 Stat. 846, and was restated in [section 2324(e)(1)(L) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2324/e/1/L&num=0&edition=prelim) (now [10 U.S.C. 3744(a)(12)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3744/a/12&num=0&edition=prelim)) by section 1(f)(2)(A) of Pub. L. 100–370.
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Source file: Laws/federal/codes/united-states-code/title-10/section-2399-renumbered-4171--b7cdc9cff1.md
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Source location: Title 10, Chapter 141, § 2399; chapter-141-miscellaneous-provisions-relating-to-property.md
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### Statutory Notes
#### Prior Provisions
A prior section 2399, added Pub. L. 97–295, § 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to limitation on availability of appropriations to reimburse a contractor for the cost of commercial insurance, was repealed by Pub.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, § 1(f)(2)(B), July 19, 1988, 102 Stat. 846, and was restated in [section 2324(e)(1)(L) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2324/e/1/L&num=0&edition=prelim) (now [10 U.S.C. 3744(a)(12)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3744/a/12&num=0&edition=prelim)) by section 1(f)(2)(A) of Pub. L. 100–370.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Condition for Proceeding Beyond Low-rate Initial Production.—**
(1) The Secretary of Defense shall provide that a covered major defense acquisition program, a covered designated major subprogram, or an element of the ballistic missile defense system may not proceed beyond low-rate initial production until initial operational test and evaluation of the program, subprogram, or element is completed.
(2) In this subsection:
(A) The term “covered major defense acquisition program” means a major defense acquisition program that involves the acquisition of a weapon system that is a major system.
(B) The term “covered designated major subprogram” means a major subprogram designated under [section 4203(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4203/a/1&num=0&edition=prelim) that is a major subprogram of a covered major defense acquisition program.
**(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—
(A) the opinion of the Director as to—
(i) whether the test and evaluation performed were adequate; and
(ii) whether the results of such test and evaluation confirm that the items or components actually tested are effective and suitable for combat; and
(B) add
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4171
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Federal law — U.S. Code and appendices · legal_authorities
Page 1923
TITLE 10—ARMED FORCES
[§ 2406
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
For effective date and applicability of repeal, see sec-
tion 4401 of Pub. L. 104–106, set out as an Effective Date
of 1996 Amendment note under section 2220 of this title.
[§ 2398. Renumbered § 2922c]
[§ 2398a. Renumbered § 2922d]
[§ 2399. Renumbered § 4171]
Editorial Notes
PRIOR PROVISIONS
A prior section 2399, added Pub. L. 97–295, § 1(29)(A),
Oct. 12, 1982, 96 Stat. 1293, which related to limitation
on availability of appropriations to reimburse a con-
tractor for the cost of commercial insurance, was re-
pealed by Pub. L. 100–370, § 1(f)(2)(B), July 19, 1988, 102
Stat. 846, and was restated in section 2324(e)(1)(L) of
this title (now 10 U.S.C. 3744(a)(12)) by section 1(f)(2)(A)
of Pub. L. 100–370.
[§ 2400. Renumbered § 4231]
Editorial Notes
PRIOR PROVISIONS
A prior section 2400 was renumbered section 4864 of
this title.
[§ 2401. Transferred]
Editorial Notes
CODIFICATION
Subsecs. (a) to (h) of this section were transferred to
chapter 257 of this title by Pub. L. 116–283, div. A, title
XVIII, § 1825(a), Jan. 1, 2021, 134 Stat. 4205. Subsecs. (a)
and (b) of this section were renumbered as section 3671
of this title by Pub. L. 116–283, div. A, title XVIII,
§ 1825(b), Jan. 1, 2021, 134 Stat. 4206. Subsec. (c)(1) of this
section was renumbered as section 3672(a) of this title
by Pub. L. 116–283, div. A, title XVIII, § 1825(d), Jan. 1,
2021, 134 Stat. 4207. Subsec. (c)(2) of this section was re-
numbered as section 3673 of this title by Pub. L. 116–283,
div. A, title XVIII, § 1825(c), Jan. 1, 2021, 134 Stat. 4206.
Subsec. (d) of this section was renumbered as section
3674 of this title by Pub. L. 116–283, div. A, title XVIII,
§ 1825(f)(
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 2399
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Specific Costs.—** The following costs are not allowable under a covered contract:
(1) Costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities).
(2) Costs incurred to influence (directly or indirectly) legislative action on any matter pending before Congress, a State legislature, or a legislative body of a political subdivision of a State.
(3) Costs incurred in defense of any civil or criminal fraud proceeding or similar proceeding (including filing of any false certification) brought by the United States where the contractor is found liable or has pleaded nolo contendere to a charge of fraud or similar proceeding (including filing of a false certification).
(4) Payments of fines and penalties resulting from violations of, or failure to comply with, Federal, State, local, or foreign laws and regulations, except when incurred as a result of compliance with specific terms and conditions of the contract or specific written instructions from the contracting officer authorizing in advance such payments in accordance with applicable provisions of the Federal Acquisition Regulation.
(5) Costs of membership in any social, dining, or country club or organization.
(6) Costs of alcoholic beverages.
(7) Contributions or donations, regardless of the recipient.
(8) Costs of advertising designed to promote the contractor or its products.
(9) Costs of promotional items and memorabilia, including models, gifts, and souvenirs.
(10) Costs for travel by commercial aircraft which exceed the amount of the standard commercial fare.
(11) Costs incurred in making any payment (commonly known as a “golden parac
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3744
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Federal law — U.S. Code and appendices · legal_authorities
Page 2538
TITLE 10—ARMED FORCES
§ 3744
agency determines that a proposal for settle-
ment of indirect costs submitted by a con-
tractor includes a cost determined to be unal-
lowable in the case of such contractor before
the submission of such proposal, the head of
the agency shall assess a penalty against the
contractor in an amount equal to two times
the amount of the disallowed cost allocated to
covered contracts for which a proposal for set-
tlement of indirect costs has been submitted.
(c) WAIVER OF PENALTY.—The Federal Acquisi-
tion Regulation shall provide for a penalty
under subsection (b) to be waived in the case of
a contractor’s proposal for settlement of indi-
rect costs when—
(1) the contractor withdraws the proposal be-
fore the formal initiation of an audit of the
proposal by the Federal Government and re-
submits a revised proposal;
(2) the amount of unallowable costs subject
to the penalty is insignificant; or
(3) the contractor demonstrates, to the con-
tracting officer’s satisfaction, that—
(A) it has established appropriate policies
and personnel training and an internal con-
trol and review system that provide assur-
ances that unallowable costs subject to pen-
alties are precluded from being included in
the contractor’s proposal for settlement of
indirect costs; and
(B) the unallowable costs subject to the
penalty were inadvertently incorporated
into the proposal.
(d) APPLICABILITY OF CONTRACT DISPUTES PRO-
CEDURE TO DISALLOWANCE OF COST AND ASSESS-
MENT OF PENALTY.—An action of the head of an
agency under subsection (a) or (b)—
(1) shall be considered a final decision for
the purposes of section 7103 of title 41; and
(2) is appealable in the manner provided in
section 7104(a) of title 41.
(Added and amended Pub. L. 116–283, d
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 3744
Stored review status: historical_2024_not_currentness_verified. The source passage cites 10 U.S.C. § 3744. This identifies an authority to review, not proof of applicability.