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10 U.S.C. § 3763 — Bid and proposal costs: allowable costs
Federal law — U.S. Code and appendices · legal_authorities
**(a) Regulations.—** The Secretary of Defense shall prescribe regulations governing the payment by the Department of Defense of expenses incurred by contractors for bid and proposal costs. Such regulations shall provide that expenses incurred for bid and proposal costs shall be reported independently from other allowable indirect costs.
**(b) Costs Allowable as Indirect Expenses.—** The regulations prescribed under subsection (a) shall provide that bid and proposal costs shall be allowable as indirect expenses on covered contracts, as defined in [section 3741 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3741&num=0&edition=prelim), to the extent that those costs are allocable, reasonable, and not otherwise unallowable by law or under the Federal Acquisition Regulation.
**(c) Goal for Reimbursable Bid and Proposal Costs.—** The Secretary shall establish a goal each fiscal year limiting the amount of reimbursable bid and proposal costs paid by the Department of Defense to an amount equal to not more than one percent of the total aggregate industry sales to the Department of Defense. To achieve such goal, the Secretary may not limit the payment of allowable bid and proposal costs for the covered year.
**(d) Panel.—**
(1) If the Department of Defense exceeds the goal established under subsection (c) for a fiscal year, within 180 days after exceeding the goal, the Secretary shall establish an advisory panel. The panel shall be supported by the Defense Acquisition University and the National Defense University, including administrative support.
(2) The panel shall be composed of nine individuals who are recognized experts in acquisition and procurement policy appointed by the Secretary. In making such appointments, the Secret
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Stable record: federal_law:legal_authorities:record_usc_5169a54b1815d60dc2179c0f
Source file: Laws/federal/codes/united-states-code/title-10/section-3763-bid-and-proposal-costs-allowable-costs--4686888369.md
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Source location: Title 10, Chapter 273, § 3763; chapter-273-allowable-costs.md
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**(a) Regulations.—** The Secretary of Defense shall prescribe regulations governing the payment by the Department of Defense of expenses incurred by contractors for bid and proposal costs. Such regulations shall provide that expenses incurred for bid and proposal costs shall be reported independently from other allowable indirect costs.
**(b) Costs Allowable as Indirect Expenses.—** The regulations prescribed under subsection (a) shall provide that bid and proposal costs shall be allowable as indirect expenses on covered contracts, as defined in [section 3741 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3741&num=0&edition=prelim), to the extent that those costs are allocable, reasonable, and not otherwise unallowable by law or under the Federal Acquisition Regulation.
**(c) Goal for Reimbursable Bid and Proposal Costs.—** The Secretary shall establish a goal each fiscal year limiting the amount of reimbursable bid and proposal costs paid by the Department of Defense to an amount equal to not more than one percent of the total aggregate industry sales to the Department of Defense. To achieve such goal, the Secretary may not limit the payment of allowable bid and proposal costs for the covered year.
**(d) Panel.—**
(1) If the Department of Defense exceeds the goal established under subsection (c) for a fiscal year, within 180 days after exceeding the goal, the Secretary shall establish an advisory panel. The panel shall be supported by the Defense Acquisition University and the National Defense University, including administrative support.
(2) The panel shall be composed of nine individuals who are recognized experts in acquisition and procurement policy appointed by the Secretary. In making such appointments, the Secretary shall ensure that the members of the panel reflect diverse experiences in the public and private sector.
(3) The panel shall review laws, regulations, and practices that contribute to the expenses incurred by contractors for bids and proposals in the fiscal year concerned and recommend changes to such laws, regulations, and practices that may reduce expenses incurred by contractors for bids and proposals.
(4)
(A) Not later than six months after the establishment of the panel, the panel shall submit to the Secretary and the congressional defense committees an interim report on the findings of the panel.
(B) Not later than one year after the establishment of the panel, the panel shall submit to the Secretary and the congressional defense committees a final report on the findings of the panel.
(5) The panel shall terminate on the day the panel submits the final report under paragraph (4)(B).
(6) The Secretary of Defense may use amounts available in the Department of Defense Acquisition Workforce Development Fund established under [section 1705 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section1705&num=0&edition=prelim) to support the activities of the panel established under this subsection.
**(e) Effective Date.—** The regulations prescribed under subsection (a) shall apply to indirect costs incurred on or after October 1, 2017.
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Federal law — U.S. Code and appendices · legal_authorities
**(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).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3001
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment.—** The Secretary of Defense shall establish an account to be known as the “Department of Defense Acquisition Workforce Development Account” (in this section referred to as the “Account”) to provide funds, in addition to other funds that may be available, for the recruitment, training, and retention of acquisition personnel of the Department of Defense.
**(b) Purpose.—** The purpose of the Account is to ensure that the Department of Defense acquisition workforce has the capacity, in both personnel and skills, needed to properly perform its mission, provide appropriate oversight of contractor performance, and ensure that the Department receives the best value for the expenditure of public resources.
**(c) Management.—** The Account shall be managed by a senior official of the Department of Defense designated by the Under Secretary of Defense for Acquisition and Sustainment for that purpose, from among persons with an extensive background in management relating to acquisition and personnel.
**(d) Elements.—** The Account shall consist of amounts appropriated to the Account by law.
**(e) Availability of Funds.—**
(1) **In general.—**
(A) Subject to the provisions of this subsection, amounts in the Account shall be available to the Secretary of Defense for expenditure, or for transfer to a military department or Defense Agency, for the recruitment, training, and retention of acquisition personnel of the Department of Defense for the purpose of the Account, including for the provision of training and retention incentives to the acquisition workforce of the Department and to develop acquisition tools and methodologies, and undertake research and development activities, leading to acquisition policies and practices that will improve the efficiency a
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Federal law — U.S. Code and appendices · legal_authorities
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Federal law — U.S. Code and appendices · legal_authorities
In this subchapter:
(1) **Compensation.—** — The term “compensation”, for a year, means the total amount of wages, salary, bonuses and deferred compensation for the year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the year.
(2) **Covered contract.—** — The term “covered contract” means a contract for an amount in excess of $500,000 that is entered into by the head of an agency, except that such term does not include a fixed-price contract without cost incentives or any firm fixed-price contract for the purchase of commercial products or commercial services.
(3) **Fiscal year.—** — The term “fiscal year” means a fiscal year established by a contractor for accounting purposes.
(4) **Head of the agency.—** — The term “head of the agency” or “agency head” does not include the Secretary of a military department.
(5) **Agency.—** — The term “agency” means the Department of Defense, the Coast Guard, and the National Aeronautics and Space Administration.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3741
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Federal law — U.S. Code and appendices · legal_authorities
Page 2547
TITLE 10—ARMED FORCES
§ 3763
and allowable, indirect expense on Department
of Defense contracts.
(c) ADDITIONAL
CONTROLS.—Subject to sub-
section (d), the regulations prescribed under
subsection (a) may include the following provi-
sions:
(1) Controls on the reimbursement of costs
to the contractor for expenses incurred for
independent research and development to en-
sure that such costs were incurred for inde-
pendent research and development.
(2) Implementation of regular methods for
transmission—
(A) from the Department of Defense to
contractors, in a reasonable manner, of
timely and comprehensive information re-
garding planned or expected needs of the De-
partment of Defense for future technology
and advanced capability; and
(B) from contractors to the Department of
Defense, in a reasonable manner, of informa-
tion regarding progress by the contractor on
the independent research and development
programs of the contractor.
(d) LIMITATIONS ON REGULATIONS.—Regulations
prescribed under subsection (a) may not include
provisions that would infringe on the independ-
ence of a contractor to choose which tech-
nologies to pursue in its independent research
and development program if the chief executive
officer of the contractor determines that ex-
penditures will advance the needs of the Depart-
ment of Defense for future technology and ad-
vanced capability as transmitted pursuant to
subsection (c)(2)(A).
(e) EFFECTIVE
DATE.—The regulations pre-
scribed under subsection (a) shall apply to indi-
rect costs incurred on or after October 1, 2017.
(Added Pub. L. 101–510, div. A, title VIII,
§ 824(a)(1), Nov. 5, 1990, 104 Stat. 1603, § 2372;
amended Pub. L. 102–25, title VII, § 701(c), Apr. 6,
1991, 105 Stat. 113; Pub. L. 102–190, div. A, title
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 3763
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