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10 U.S.C. § 3374 — Undefinitized contractual actions: allowable profit
Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowed Profit to Reflect Cost Risks of Contractor.—** The head of an agency shall ensure that the profit allowed on an undefinitized contractual action for which the final price is negotiated after a substantial portion of the performance required is completed reflects—
(1) the possible reduced cost risk of the contractor with respect to costs incurred during performance of the contract before the final price is negotiated;
(2) the reduced cost risk of the contractor with respect to costs incurred during performance of the remaining portion of the contract;
(3) the increased cost risk of the contractor with respect to any costs incurred prior to the award of the undefinitized contractual action when such costs—
(A) would have been directly chargeable to the contract if incurred after the award of the contract; and
(B) were incurred to meet an anticipated contract delivery schedule or anticipated contract price targets of the Government under an acquisition strategy required under [section 4211 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4211&num=0&edition=prelim); and
(4) the increased cost risk of the contractor with respect to negotiations continuing for more than 180 days beginning on the date on which the contractor submitted the qualifying proposal to definitize such undefinitized contractual action.
**(b) Date as of Which Contractor Cost Risk to Be Determined.—** If a contractor submits a qualifying proposal to definitize an undefinitized contractual action and the contracting officer for such action definitizes the contract after the end of the 180-day period beginning on the date on which the contractor submitted the qualifying proposal, the head of the agency concerned shall ensure that the profit
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Stable record: federal_law:legal_authorities:record_usc_bb524a4929df69bef661ce4d
Source file: Laws/federal/codes/united-states-code/title-10/section-3374-undefinitized-contractual-actions-allowable-profit--83a88992c2.md
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Source location: Title 10, Chapter 244, § 3374; chapter-244-undefinitized-contractual-actions.md
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**(a) Allowed Profit to Reflect Cost Risks of Contractor.—** The head of an agency shall ensure that the profit allowed on an undefinitized contractual action for which the final price is negotiated after a substantial portion of the performance required is completed reflects—
(1) the possible reduced cost risk of the contractor with respect to costs incurred during performance of the contract before the final price is negotiated;
(2) the reduced cost risk of the contractor with respect to costs incurred during performance of the remaining portion of the contract;
(3) the increased cost risk of the contractor with respect to any costs incurred prior to the award of the undefinitized contractual action when such costs—
(A) would have been directly chargeable to the contract if incurred after the award of the contract; and
(B) were incurred to meet an anticipated contract delivery schedule or anticipated contract price targets of the Government under an acquisition strategy required under [section 4211 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4211&num=0&edition=prelim); and
(4) the increased cost risk of the contractor with respect to negotiations continuing for more than 180 days beginning on the date on which the contractor submitted the qualifying proposal to definitize such undefinitized contractual action.
**(b) Date as of Which Contractor Cost Risk to Be Determined.—** If a contractor submits a qualifying proposal to definitize an undefinitized contractual action and the contracting officer for such action definitizes the contract after the end of the 180-day period beginning on the date on which the contractor submitted the qualifying proposal, the head of the agency concerned shall ensure that the profit allowed on the contract accurately reflects the cost risk of the contractor as such risk existed on the date the contractor submitted the qualifying proposal.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Acquisition Strategy Required.—** There shall be an acquisition strategy for each major defense acquisition program and each major system approved by a decision authority.
**(b) Responsible Official.—** For each acquisition strategy required by subsection (a), the Under Secretary of Defense for Acquisition and Sustainment, or the decision authority, when the decision authority is the service acquisition executive of the military department that is managing the program, is responsible for issuing and maintaining the requirements for—
(1) the content of the strategy; and
(2) the review and approval process for the strategy.
**(c) Considerations.—**
(1) In issuing requirements for the content of an acquisition strategy for a major defense acquisition program or major system, the Under Secretary, or the decision authority, when the decision authority is the service acquisition executive of the military department that is managing the program, shall ensure that—
(A) the strategy clearly describes the proposed business case and capability management approach for the program or system, and to the maximum extent practicable, describes how capability requirements will be met through delivery of such program or system;
(B) the strategy contains a clear explanation of the resources, such as time, funding, and management capacity, necessary to meet capability requirements;
(C) the strategy is tailored to address program requirements and constraints; and
(D) the strategy considers the items listed in paragraph (2).
(2) Each strategy shall, where appropriate, consider the following:
(A) An approach that delivers required capabilities in increments, each depending on available mature technology, and that recognizes up front the need for future capability imp
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4211
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 99–500, § 101(c) [title X, § 908(d)(1)(A)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–140, and Pub. L. 99–591, § 101(c) [title X, § 908(d)(1)(A)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–140; Pub. L. 99–661, div. A, title IX, formerly title IV, § 908(d)(1)(A), Nov. 14, 1986, 100 Stat. 3920, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; amended Pub. L. 101–189, div. A, title XVI, § 1622(c)(6), Nov. 29, 1989, 103 Stat. 1604; Pub. L. 102–25, title VII, § 701(d)(5), Apr. 6, 1991, 105 Stat. 114; Pub. L. 103–355, title I, § 1505, Oct. 13, 1994, 108 Stat. 3298; Pub. L. 105–85, div. A, title VIII, § 803(a), Nov. 18, 1997, 111 Stat. 1831; Pub. L. 114–328, div. A, title VIII, § 811, Dec. 23, 2016, 130 Stat. 2268; Pub. L. 115–91, div. A, title VIII, § 815(a), (b), Dec. 12, 2017, 131 Stat. 1462; Pub. L. 116–92, div. A, title IX, § 902(50), Dec. 20, 2019, 133 Stat. 1548; Pub. L. 116–283, div. A, title XVIII, § 1819(b), (c)(1), (d), (e)(1), (f), (g), Jan. 1, 2021, 134 Stat. 4189–4191, related to restrictions for undefinitized contractual actions. See, generally, chapter 244 of this title.
#### Prior Provisions
A prior section 2326 was renumbered [section 2346 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2346&num=0&edition=prelim).
#### 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. § 2326
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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 2476
TITLE 10—ARMED FORCES
§ 3374
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section and amendment by Pub. L. 116–283 effective
Jan. 1, 2022, with additional provisions for delayed im-
plementation and applicability of existing law, see sec-
tion 1801(d) of Pub. L. 116–283, set out as an Effective
Date of 2021 Amendment note preceding section 3001 of
this title.
§ 3374. Undefinitized contractual actions: allow-
able profit
(a) ALLOWED PROFIT TO REFLECT CERTAIN RE-
DUCED COST RISKS OF CONTRACTOR.—The head of
an agency shall ensure that the profit allowed
on an undefinitized contractual action for which
the final price is negotiated after a substantial
portion of the performance required is com-
pleted reflects—
(1) the possible reduced cost risk of the con-
tractor with respect to costs incurred during
performance of the contract before the final
price is negotiated; and
(2) the reduced cost risk of the contractor
with respect to costs incurred during perform-
ance of the remaining portion of the contract.
(b) DATE AS OF WHICH CONTRACTOR COST RISK
TO BE DETERMINED.—If a contractor submits a
qualifying proposal to definitize an undefinitized
contractual action and the contracting officer
for such action definitizes the contract after the
end of the 180-day period beginning on the date
on which the contractor submitted the quali-
fying proposal, the head of the agency concerned
shall ensure that the profit allowed on the con-
tract accurately reflects the cost risk of the
contractor as such risk existed on the date the
contractor submitted the qualifying proposal.
(Added and amended Pub. L. 116–283, div. A, title
XVIII, § 1819(a), (e), Jan. 1, 2021, 134 Stat. 4189,
4190.)
Editorial Notes
CODIFICATION
The text of subsec. (f) of
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 3374
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