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10 U.S.C. § 4292 — Contracts: limitations on lead system integrators
Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** Except as provided in subsection (b), no entity performing lead system integrator functions in the acquisition of a major system by the Department of Defense may have any direct financial interest in the development or construction of any individual system or element of any system of systems.
**(b) Exception.—** An entity described in subsection (a) may have a direct financial interest in the development or construction of an individual system or element of a system of systems if—
(1) the Secretary of Defense certifies to the Committees on Armed Services of the Senate and the House of Representatives that—
(A) the entity was selected by the Department of Defense as a contractor to develop or construct the system or element concerned through the use of competitive procedures; and
(B) the Department took appropriate steps to prevent any organizational conflict of interest in the selection process; or
(2) the entity was selected by a subcontractor to serve as a lower-tier subcontractor, through a process over which the entity exercised no control.
**(c) Construction.—** Nothing in this section shall be construed to preclude an entity described in subsection (a) from performing work necessary to integrate two or more individual systems or elements of a system of systems with each other.
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Stable record: federal_law:legal_authorities:record_usc_73315fc5292f20af494385b2
Source file: Laws/federal/codes/united-states-code/title-10/section-4292-contracts-limitations-on-lead-system-integrators--5e063c42a7.md
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Source location: Title 10, Chapter 322, § 4292; chapter-322-major-systems-and-major-defense-acquisition-programs-generally.md
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**(a) In General.—** Except as provided in subsection (b), no entity performing lead system integrator functions in the acquisition of a major system by the Department of Defense may have any direct financial interest in the development or construction of any individual system or element of any system of systems.
**(b) Exception.—** An entity described in subsection (a) may have a direct financial interest in the development or construction of an individual system or element of a system of systems if—
(1) the Secretary of Defense certifies to the Committees on Armed Services of the Senate and the House of Representatives that—
(A) the entity was selected by the Department of Defense as a contractor to develop or construct the system or element concerned through the use of competitive procedures; and
(B) the Department took appropriate steps to prevent any organizational conflict of interest in the selection process; or
(2) the entity was selected by a subcontractor to serve as a lower-tier subcontractor, through a process over which the entity exercised no control.
**(c) Construction.—** Nothing in this section shall be construed to preclude an entity described in subsection (a) from performing work necessary to integrate two or more individual systems or elements of a system of systems with each other.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 104–201, div. A, title VIII, § 805(a)(2), Sept. 23, 1996, 110 Stat. 2605; amended Pub. L. 105–85, div. A, title X, § 1073(a)(41), Nov. 18, 1997, 111 Stat. 1902; Pub. L. 106–65, div. A, title X, § 1067(1), Oct. 5, 1999, 113 Stat. 774; Pub. L. 116–283, div. A, title XVIII, §§ 1806(c)(3), 1846(e)(1), Jan. 1, 2021, 134 Stat. 4155, 4249, related to definitional threshold amounts of a major system.
#### Effective Date of Repeal
Repeal effective Jan. 1, 2022, with additional provisions for delayed implementation 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3001&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2302d
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** In this part (other than in sections 4292(e) and 4321), the term “major system” means a combination of elements that will function together to produce the capabilities required to fulfill a mission need. The elements may include hardware, equipment, software or any combination thereof, but excludes construction or other improvements to real property.
**(b) System Considered to Be a Major System.—** A system shall be considered a major system if—
(1) the conditions of subsection (c) or (d), as applicable, are satisfied; or
(2) the system is designated a “major system” by the head of the agency responsible for the system.
**(c) Department of Defense Systems.—**
(1) **In general.—** — For purposes of subsection (b), a system for which the Department of Defense is responsible shall be considered a major system if—
(A) the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $275,000,000 (based on fiscal year 2024 constant dollars); or
(B) the eventual total expenditure for procurement for the system is estimated to be more than $1,300,000,000 (based on fiscal year 2024 constant dollars).
(2) **Adjustment authority.—** — Authority for the Secretary of Defense to adjust amounts and the base fiscal year in effect under this subsection is provided in [section 4202(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4202/b&num=0&edition=prelim).
**(d) Civilian Agency Systems.—** For purposes of subsection (b), a system for which a civilian agency is responsible shall be considered a major system if total expenditures for the system are estimated to exceed the greater of—
(1) $2,000,000 (based on fiscal year 2024 constant dollars); or
(2) the do
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3041
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination of Quantities To Be Procured for Low-Rate Initial Production.—**
(1) In the course of the development of a major system, the determination of what quantity of articles of that system should be procured for low-rate initial production (including the quantity to be procured for preproduction verification articles) shall be made—
(A) when the milestone B decision with respect to that system is made; and
(B) by the official of the Department of Defense who makes that decision.
(2) In this section, the term “milestone B decision” means the decision to approve the system development and demonstration of a major system by the official of the Department of Defense designated to have the authority to make that decision.
(3) Any increase from a quantity determined under paragraph (1) may only be made with the approval of the official making the determination.
(4) The quantity of articles of a major system that may be procured for low-rate initial production may not be less than one operationally configured production unit unless another quantity is established at the milestone B decision.
(5) The Secretary of Defense shall include a statement of the quantity determined under paragraph (1) in the first SAR submitted with respect to the program concerned after that quantity is determined. If the quantity exceeds 10 percent of the total number of articles to be produced, as determined at the milestone B decision with respect to that system, the Secretary shall include in the statement the reasons for such quantity. For purposes of this paragraph, the term “SAR” means a Selected Acquisition Report submitted under [section 4351 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4351&num=0&edition=prelim).
**(b) Lo
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4231
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Policies and Procedures.—** The Secretary of Defense shall establish policies and procedures for the effective management (including accession, education, training, and career development) of persons serving in acquisition positions in the Department of Defense.
**(b) Uniform Implementation.—** The Secretary shall ensure that, to the maximum extent practicable, acquisition workforce policies and procedures established in accordance with this chapter are uniform in their implementation throughout the Department of Defense.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 1701
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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
### Statutory Notes
#### Prior Provisions
A prior section 2400 was renumbered [section 4864 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4864&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2400
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Federal law — U.S. Code and appendices · legal_authorities
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Source: U.S. Code supplied Markdown snapshot · 10 U.S.C. § 2410p
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Federal law — U.S. Code and appendices · legal_authorities
Page 2730
TITLE 10—ARMED FORCES
§ 4292
year 2017 or pursuant to the plan submitted under sub-
section (c) for demonstrations of the following capabili-
ties:
‘‘(1) Swarming of multiple unmanned air vehicles.
‘‘(2) Unmanned, modular fixed-wing aircraft that
can be rapidly adapted to multiple missions and serve
as a fifth generation weapons augmentation platform.
‘‘(3) Vertical takeoff and landing tiltrotor aircraft.
‘‘(4) Integration of a directed energy weapon on an
air, sea, or ground platform.
‘‘(5) Swarming of multiple unmanned underwater
vehicles.
‘‘(6) Commercial small synthetic aperture radar
(SAR) satellites with on-board machine learning for
automated, real-time feature extraction and pre-
dictive analytics.
‘‘(7) Active protection system to defend against
rocket-propelled grenades and anti-tank missiles.
‘‘(8) Defense against hypersonic weapons, including
sensors.
‘‘(9) Unmanned ground logistics and unmanned air
logistics capabilities enhancement.
‘‘(10) Other systems as designated by the Secretary.
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) NONTRADITIONAL
DEFENSE
CONTRACTOR.—The
term ‘nontraditional defense contractor’ has the
meaning given the term in section 3014 of title 10,
United States Code.
‘‘(2) SMALL
BUSINESS
CONCERN.—The term ‘small
business concern’ has the meaning given the term in
section 3 of the Small Business Act (15 U.S.C. 632).
‘‘(f) SUNSET.—The authority under this section ex-
pires at the close of September 30, 2026.’’
ORGANIZATIONAL CONFLICTS OF INTEREST IN MAJOR
DEFENSE ACQUISITION PROGRAMS
Pub. L. 111–23, title II, § 207(a)–(c), May 22, 2009, 123
Stat. 1728, 1729, directed the Secretary of Defense to re-
vise, not later than 270 days after May 22, 2009, the De-
fense Supplement to the Federal Acquisition Reg
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 4292
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