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10 U.S.C. § 2207 — Renumbered § 4651]
Federal law — U.S. Code and appendices · legal_authorities
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Money appropriated to the Department of Defense may not be spent under a contract other than a contract for personal services unless that contract provides that—
(1) the United States may, by written notice to the contractor, terminate the right of the contractor to proceed under the contract if the Secretary concerned or his designee finds, after notice and hearing, that the contractor, or his agent or other representative, offered or gave any gratuity, such as entertainment or a gift, to an officer, official, or employee of the United States to obtain a contract or favorable treatment in the awarding, amending, or making of determinations concerning the performance, of a contract; and
(2) if a contract is terminated under clause (1), the United States has the same remedies against the contractor that it would have had if the contractor had breached the contract and, in addition to other damages, is entitled to exemplary damages in an amount at least three, but not more than 10, as determined by the Secretary or his designee, times the cost incurred by the contractor in giving gratuities to the officer, official, or employee concerned.
The existence of facts upon which the Secretary makes findings under clause (1) may be reviewed by any competent court.
**(b)** This section does not apply to a contract that is for an amount not greater than the simplified acquisition threshold (as defined in [section 134 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section134&num=0&edition=prelim)).
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Federal law — U.S. Code and appendices · legal_authorities
Page 1745
TITLE 10—ARMED FORCES
§ 2208
irrespective of the appropriation financing the
project or facility services.
(Added Pub. L. 87–651, title II, § 207(a), Sept. 7,
1962, 76 Stat. 520; amended Pub. L. 96–513, title V,
§ 511(71), Dec. 12, 1980, 94 Stat. 2926; Pub. L.
97–258, § 3(b)(4), Sept. 13, 1982, 96 Stat. 1063; Pub.
L. 103–337, div. B, title XXVIII, § 2804(a), (b)(1),
Oct. 5, 1994, 108 Stat. 3053.)
HISTORICAL AND REVISION NOTES
Revised
section
Source (U.S. Code)
Source (Statutes at Large)
2205 .........
5:172g.
July 26, 1947, ch. 343,
§ 408; added Aug. 10,
1949, ch. 412, § 11 (23d
par.), 63 Stat. 590.
5 U.S.C. 172g is restated to reflect more clearly its
purpose to authorize the Department of Defense to op-
erate as an integrated department by permitting sup-
plies to be furnished and services to be rendered within
and among agencies of the Department of Defense and
provide that reimbursements therefor be credited to
authorized accounts and be available for the same pur-
pose and period as the accounts so credited. (See Sen-
ate Report No. 366, 81st Congress, pp. 23, 24.)
Editorial Notes
AMENDMENTS
1994—Pub. L. 103–337 substituted ‘‘Reimbursements’’
for ‘‘Availability of reimbursements’’ as section catch-
line, designated existing provisions as subsec. (a) and
inserted subsec. heading, and added subsec. (b).
1982—Pub. L. 97–258 substituted ‘‘sections 1535 and
1536 of title 31’’ for ‘‘the Act of March 4, 1915 (31 U.S.C.
686)’’.
1980—Pub. L. 96–513 substituted ‘‘the Act of March 4,
1915 (31 U.S.C. 686)’’ for ‘‘section 686 of title 31’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–513 effective Dec. 12, 1980,
see section 701(b)(3) of Pub. L. 96–513, set out as a note
under secti
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