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10 U.S.C. § 3802 — Payment
Federal law — U.S. Code and appendices · legal_authorities
**(a) Preference for Performance-Based Payments.—** Whenever practicable, payments under [section 3801 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3801&num=0&edition=prelim) shall be made using performance-based payments on any of the following bases:
(1) Performance measured by objective, quantifiable methods such as delivery of acceptable items, work measurement, or statistical process controls.
(2) Accomplishment of events defined in the program management plan.
(3) Other quantifiable measures of results.
**(b) Basis for performance-based payments.—** Performance-based payments shall not be conditioned upon costs incurred in contract performance but on the achievement of performance outcomes listed in subsection (a).
**(c) Contractor Accounting Systems.—**
(1) In order to receive performance-based payments, a contractor’s accounting system shall be in compliance with Generally Accepted Accounting Principles, and there shall be no requirement for a contractor to develop Government-unique accounting systems or practices as a prerequisite for agreeing to receive performance-based payments.
(2) Nothing in this chapter shall be construed to grant the Defense Contract Audit Agency the authority to audit compliance with Generally Accepted Accounting Principles.
**(d) Payment Amount.—** Payments made under [section 3801 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3801&num=0&edition=prelim) may not exceed the unpaid contract price.
**(e) Eligibility of Nontraditional Defense Contractors.—** The Secretary of Defense shall ensure that nontraditional defense contractors and other private sector companies are eligible for performance-based payments, consistent with best commerci
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Source location: Title 10, Chapter 277, § 3802; chapter-277-contract-financing.md
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**(a) Preference for Performance-Based Payments.—** Whenever practicable, payments under [section 3801 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3801&num=0&edition=prelim) shall be made using performance-based payments on any of the following bases:
(1) Performance measured by objective, quantifiable methods such as delivery of acceptable items, work measurement, or statistical process controls.
(2) Accomplishment of events defined in the program management plan.
(3) Other quantifiable measures of results.
**(b) Basis for performance-based payments.—** Performance-based payments shall not be conditioned upon costs incurred in contract performance but on the achievement of performance outcomes listed in subsection (a).
**(c) Contractor Accounting Systems.—**
(1) In order to receive performance-based payments, a contractor’s accounting system shall be in compliance with Generally Accepted Accounting Principles, and there shall be no requirement for a contractor to develop Government-unique accounting systems or practices as a prerequisite for agreeing to receive performance-based payments.
(2) Nothing in this chapter shall be construed to grant the Defense Contract Audit Agency the authority to audit compliance with Generally Accepted Accounting Principles.
**(d) Payment Amount.—** Payments made under [section 3801 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3801&num=0&edition=prelim) may not exceed the unpaid contract price.
**(e) Eligibility of Nontraditional Defense Contractors.—** The Secretary of Defense shall ensure that nontraditional defense contractors and other private sector companies are eligible for performance-based payments, consistent with best commercial practices.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Payment Authority.—** The head of any agency may—
(1) make advance, partial, progress, or other payments under contracts for property or services made by the agency; and
(2) insert in solicitations for procurement of property or services a provision limiting to small business concerns advance or progress payments.
**(b) Payment Dates for Contractors That Are Small Business Concerns.—**
(1) **Prime contractors.—** — For a prime contractor (as defined in [section 8701 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section8701&num=0&edition=prelim)) that is a small business concern (as defined in 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))), the Secretary of Defense shall, to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due.
(2) **Subcontractors.—** — For a prime contractor that subcontracts with a small business concern, the Secretary of Defense shall, to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due if the prime contractor agrees to make payments to the subcontractor in accordance with the accelerated payment date, to the maximum extent practicable, without any further consideration from or fees charged to the subcontractor.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3801
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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
Page 2563
TITLE 10—ARMED FORCES
§ 3802
and applicability of existing law, see section 1801(d) of
Pub. L. 116–283, set out as a note preceding section 3001
of this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Pub. L. 100–26, § 12(d)(2), Apr. 21, 1987, 101 Stat. 289,
provided that: ‘‘The amendment to section 2328 of such
title
[now
10
U.S.C.
3794]
made
by
section
7(a)(7)(A)(i)(II) shall take effect on the same date and in
the same manner as provided in section 1804(b) of Pub-
lic Law 99–570 [set out as an Effective Date of 1986
Amendment note under section 552 of Title 5, Govern-
ment Organization and Employees] for the amendment
made by section 1803 of that Public Law to section 552a
of title 5, United States Code [probably means amend-
ment by section 1803 of Pub. L. 99–570 to section 552(a)
of Title 5].’’
EFFECTIVE DATE
Pub. L. 99–500, § 101(c) [title X, § 954(b)], Oct. 18, 1986,
100 Stat. 1783–82, 1783–173, Pub. L. 99–591, § 101(c) [title X,
§ 954(b)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–173, and
Pub. L. 99–661, div. A, title IX, formerly title IV,
§ 954(b), Nov. 14, 1986, 100 Stat. 3953, renumbered title IX
by Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273, pro-
vided that: ‘‘The amendments made by this section [en-
acting this section] shall take effect at the end of the
90-day period beginning on the date of the enactment of
this Act [Oct. 18, 1986].’’
CHAPTER 277—CONTRACT FINANCING
Sec.
3801.
Authority of agency.
3802.
Payment.
3803.
Security for advance payments.
3804.
Conditions for progress payments.
3805.
Payments for commercial products and com-
mercial services.
3806.
Action in case of fraud.
3807.
Vesting of title in the United States.
3808.
Certain Navy contracts.
Editorial Notes
PRIOR PROVISIONS
A prior ch
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