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10 U.S.C. § 3761 — Restructuring costs
Federal law — U.S. Code and appendices · legal_authorities
**(a) Limitation on Payment of Restructuring Costs.—** The Secretary of Defense may not pay, under subchapter I, a defense contractor for restructuring costs associated with a business combination of the contractor that occurs after November 18, 1997, unless the Secretary determines in writing either—
(1) that the amount of projected savings for the Department of Defense associated with the restructuring will be at least twice the amount of the costs allowed; or
(2) that the amount of projected savings for the Department of Defense associated with the restructuring will exceed the amount of the costs allowed and that the business combination will result in the preservation of a critical capability that otherwise might be lost to the Department.
**(b) Limitation on Delegation.—** The Secretary may not delegate the authority to make a determination under subsection (a), with respect to a business combination, to an official of the Department of Defense—
(1) below the level of an Assistant Secretary of Defense for cases in which the amount of restructuring costs is expected to exceed $25,000,000 over a 5-year period; or
(2) below the level of the Director of the Defense Contract Management Agency for all other cases.
**(c) Definition.—** In this section, the term “business combination” includes a merger or acquisition.
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Source location: Title 10, Chapter 273, § 3761; chapter-273-allowable-costs.md
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**(a) Limitation on Payment of Restructuring Costs.—** The Secretary of Defense may not pay, under subchapter I, a defense contractor for restructuring costs associated with a business combination of the contractor that occurs after November 18, 1997, unless the Secretary determines in writing either—
(1) that the amount of projected savings for the Department of Defense associated with the restructuring will be at least twice the amount of the costs allowed; or
(2) that the amount of projected savings for the Department of Defense associated with the restructuring will exceed the amount of the costs allowed and that the business combination will result in the preservation of a critical capability that otherwise might be lost to the Department.
**(b) Limitation on Delegation.—** The Secretary may not delegate the authority to make a determination under subsection (a), with respect to a business combination, to an official of the Department of Defense—
(1) below the level of an Assistant Secretary of Defense for cases in which the amount of restructuring costs is expected to exceed $25,000,000 over a 5-year period; or
(2) below the level of the Director of the Defense Contract Management Agency for all other cases.
**(c) Definition.—** In this section, the term “business combination” includes a merger or acquisition.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 99–145, title IX, § 911(a)(1), Nov. 8, 1985, 99 Stat. 682; amended Pub. L. 99–190, § 101(b) [title VIII, § 8112(a)], Dec. 19, 1985, 99 Stat. 1185, 1223; Pub. L. 100–26, § 7(k)(3), Apr. 21, 1987, 101 Stat. 284; Pub. L. 100–180, div. A, title VIII, § 805(a), Dec. 4, 1987, 101 Stat. 1126; Pub. L. 100–370, § 1(f)(2)(A), (3)(A), July 19, 1988, 102 Stat. 846; Pub. L. 100–456, div. A, title III, § 322(a), title VIII, §§ 826(a), 832(a), Sept. 29, 1988, 102 Stat. 1952, 2022, 2023; Pub. L. 100–463, title VIII, § 8105(a), Oct. 1, 1988, 102 Stat. 2270–36; Pub. L. 100–526, title I, § 106(a)(2), Oct. 24, 1988, 102 Stat. 2625; Pub. L. 100–700, § 8(b), Nov. 19, 1988, 102 Stat. 4636; Pub. L. 101–189, div. A, title III, § 311(a)(1), title VIII, § 853(a)(1), (b)(3), Nov. 29, 1989, 103 Stat. 1411, 1518; Pub. L. 101–510, div. A, title XIII, § 1301(10), Nov. 5, 1990, 104 Stat. 1668; Pub. L. 102–190, div. A, title III, § 346(a), Dec. 5, 1991, 105 Stat. 1346; Pub. L. 102–484, div. A, title VIII, § 818(a), title X, § 1052(26), title XIII, § 1352(b), Oct. 23, 1992, 106 Stat. 2457, 2500, 2559; Pub. L. 103–355, title II, § 2101(a)–(d), Oct. 13, 1994, 108 Stat. 3306–3308; Pub. L. 104–106, div. D, title XLIII, § 4321(a)(5), (b)(9), Feb. 10, 1996, 110 Stat. 671, 672; Pub. L. 105–85, div. A, title VIII, § 808(a), Nov. 18, 1997, 111 Stat. 1836; Pub. L. 105–261, div. A, title VIII, § 804(a), Oct. 17, 1998, 112 Stat. 2083; Pub. L. 111–350, § 5(b)(19), Jan. 4, 2011, 124 Stat. 3844; Pub. L. 112–81, div. A, title VIII, § 803(a), (b), Dec. 31, 2011, 125 Stat. 1485; Pub. L. 112–239, div. A, title VIII, § 827(g), Jan. 2, 2013, 126 Stat. 1836; Pub. L. 113–66, div. A, title VIII, § 811(a), Dec. 26, 2013, 127 Stat. 806; Pub. L. 113–67, div. A, title VII, § 702(a)(2), De
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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).
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
#### Prior Provisions
A prior section 2325, added Pub. L. 99–500, § 101(c) [title X, § 907(a)(1)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–137, and Pub. L. 99–591, § 101(c) [title X, § 907(a)(1)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–137; Pub. L. 99–661, div. A, title IX, formerly title IV, § 907(a)(1), Nov. 14, 1986, 100 Stat. 3917, 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)(5), Nov. 29, 1989, 103 Stat. 1604; Pub. L. 101–510, div. A, title VIII, § 810, Nov. 5, 1990, 104 Stat. 1595; Pub. L. 103–160, div. A, title IX, § 904(d)(1), Nov. 30, 1993, 107 Stat. 1728, directed Secretary of Defense to ensure that requirements of Department of Defense with respect to procurement of supplies be stated in terms of functions to be performed, performance required, or essential physical characteristics, and related to preference for nondevelopmental items in procurement of supplies, prior to repeal by Pub. L. 103–355, title VIII, § 8104(b)(1), Oct. 13, 1994, 108 Stat. 3391. See sections 3451 and 3453 of this title.
Another prior section 2325 was renumbered [section 2345 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2345&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
Page 2546
TITLE 10—ARMED FORCES
§ 3761
ed for or on behalf of the Department of Defense on
or after May 1, 2007.’’
REIMBURSEMENT
OF INDIRECT COSTS
OF INSTITUTIONS
OF HIGHER EDUCATION UNDER DEPARTMENT
OF DE-
FENSE CONTRACTS
Pub. L. 103–160, div. A, title VIII, § 841, Nov. 30, 1993,
107 Stat. 1719, as amended by Pub. L. 105–244, title I,
§ 102(a)(2)(C), Oct. 7, 1998, 112 Stat. 1617, provided that:
‘‘(a) PROHIBITION.—The Secretary of Defense may not
by regulation place a limitation on the amount that
the Department of Defense may reimburse an institu-
tion of higher education for allowable indirect costs in-
curred by the institution for work performed for the
Department of Defense under a Department of Defense
contract unless that same limitation is applied uni-
formly to all other organizations performing similar
work for the Department of Defense under Department
of Defense contracts.
‘‘(b) WAIVER.—The Secretary of Defense may waive
the application of the prohibition in subsection (a) in
the case of a particular institution of higher education
if the governing body of the institution requests the
waiver in order to simplify the overall management by
that institution of cost reimbursements by the Depart-
ment of Defense for contracts awarded by the Depart-
ment to the institution.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The term ‘allowable indirect costs’ means costs
that are generally considered allowable as indirect
costs under regulations that establish the cost reim-
bursement principles applicable to an institution of
higher education for purposes of Department of De-
fense contracts.
‘‘(2) The term ‘institution of higher education’ has
the meaning given such term in section 101 of the
Higher Education Act of 1965 [20 U.S.C. 1001].’’
§ 37
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