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10 U.S.C. § 3801 — Authority of agency
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.
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Stable record: federal_law:legal_authorities:record_usc_8402d64ca718c99d5ec6d498
Source file: Laws/federal/codes/united-states-code/title-10/section-3801-authority-of-agency--38d67d395f.md
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Source location: Title 10, Chapter 277, § 3801; chapter-277-contract-financing.md
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**(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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Small business concerns**
(1) **In general** — For the purposes of this chapter, a small-business concern, including but not limited to enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries, shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation.
(2) **Establishment of size standards**
(A) *In general* — In addition to the criteria specified in paragraph (1) and subject to the requirements specified under subparagraph (C), the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for the purposes of this chapter or any other Act.
(B) *Additional criteria* — The standards described in paragraph (1) may utilize number of employees, dollar volume of business, net worth, net income, a combination thereof, or other appropriate factors.
(C) *Requirements* — Unless specifically authorized by statute, no Federal department (including the Administration when acting pursuant to subparagraph (A)) or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard—
(i) is proposed after an opportunity for public notice and comment;
(ii) provides for determining—
(I) the size of a manufacturing concern as measured by the manufacturing concern’s average employment based upon employment during each of the manufacturing concern’s pay periods for the preceding 24 months;
(II) the size of a business concern providing services on the basis of the annual average gross receipts of the business concern over
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 632
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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
In this chapter:
(1) **Contracting agency.—** — The term “contracting agency”, when used with respect to a prime contractor, means a department, agency, or establishment of the Federal Government that enters into a prime contract with a prime contractor.
(2) **Kickback.—** — The term “kickback” means any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind that is provided to a prime contractor, prime contractor employee, subcontractor, or subcontractor employee to improperly obtain or reward favorable treatment in connection with a prime contract or a subcontract relating to a prime contract.
(3) **Person.—** — The term “person” means a corporation, partnership, business association of any kind, trust, joint-stock company, or individual.
(4) **Prime contract.—** — The term “prime contract” means a contract or contractual action entered into by the Federal Government to obtain supplies, materials, equipment, or services of any kind.
(5) **Prime contractor.—** — The term “prime contractor” means a person that has entered into a prime contract with the Federal Government.
(6) **Prime contractor employee.—** — The term “prime contractor employee” means an officer, partner, employee, or agent of a prime contractor.
(7) **Subcontract.—** — The term “subcontract” means a contract or contractual action entered into by a prime contractor or subcontractor to obtain supplies, materials, equipment, or services of any kind under a prime contract.
(8) **Subcontractor.—** — The term “subcontractor”—
(A) means a person, other than the prime contractor, that offers to furnish or furnishes supplies, materials, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with the prime contract; an
Source: Supplied U.S. Code snapshot — release unconfirmed · 41 U.S.C. § 8701
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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
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3802
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Federal law — U.S. Code and appendices · legal_authorities
Advance 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 be made only if the contractor gives adequate security and after a determination by the head of the agency that to do so would be in the public interest. Such security may be in the form of a lien in favor of the United States on the property contracted for, on the balance in an account in which such payments are deposited, and on such of the property acquired for performance of the contract as the parties may agree. This lien is paramount to any other liens and is effective immediately upon the first advancement of funds without filing, notice, or any other action by the United States.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3803
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Terms and Conditions for Payments.—** Payments under [section 3801 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3801&num=0&edition=prelim) for commercial products and commercial services may be made under such terms and conditions as the head of the agency determines are appropriate or customary in the commercial marketplace and are in the best interests of the United States.
**(b) Security for Payments.—** The head of the agency shall obtain adequate security for such payments. If the security is in the form of a lien in favor of the United States, such lien is paramount to all other liens and is effective immediately upon the first payment, without filing, notice, or other action by the United States.
**(c) Limitation on Advance Payments.—** Advance payments made under [section 3801 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3801&num=0&edition=prelim) for commercial products and commercial services may include payments, in a total amount of not more than 15 percent of the contract price, in advance of any performance of work under the contract.
**(d) Nonapplication of Certain Conditions.—**
(1) The conditions of sections 3803 and 3804 of this title need not be applied if they would be inconsistent, as determined by the head of the agency, with commercial terms and conditions pursuant to this section.
(2) For the purposes of [section 3803 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3803&num=0&edition=prelim), a payment for covered services acquired through a commercially utilized acquisition strategy shall not be considered an advance payment made under [section 3801 of this title](https://uscode.house.gov/view.xhtml?re
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3805
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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
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 3801
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
Page 769
TITLE 15—COMMERCE AND TRADE
§ 632
Editorial Notes
REFERENCES IN TEXT
This subtitle, referred to in subsec. (a), is subtitle D
(§§ 141–147) of title I of div. K of Pub. L. 108–447, Dec. 8,
2004, 118 Stat. 3453, which enacted this section, amended
sections 637, 648, 657b, and 657c of this title, enacted
provisions set out as note under section 637 of this title,
and amended provisions set out as a note under section
657b of this title. For complete classification of subtitle
D to the Code, see Tables.
CODIFICATION
Section was enacted as part of the Small Business
Reauthorization and Manufacturing Assistance Act of
2004, and also as part of the Consolidated Appropria-
tions Act, 2005, and not as part of the Small Business
Act which comprises this chapter.
§ 632. Definitions
(a) Small business concerns
(1) In general
For the purposes of this chapter, a small-
business concern, including but not limited to
enterprises that are engaged in the business of
production of food and fiber, ranching and
raising of livestock, aquaculture, and all other
farming and agricultural related industries,
shall be deemed to be one which is independ-
ently owned and operated and which is not
dominant in its field of operation.
(2) Establishment of size standards
(A) In general
In addition to the criteria specified in
paragraph (1) and subject to the require-
ments specified under subparagraph (C), the
Administrator may specify detailed defini-
tions or standards by which a business con-
cern may be determined to be a small busi-
ness concern for the purposes of this chapter
or any other Act.
(B) Additional criteria
The standards described in paragraph (1)
may utilize number of employees, dollar vol-
ume of business, net worth, net income, a
combinatio
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 632
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 632. This identifies an authority to review, not proof of applicability.