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10 U.S.C. § 3805 — Payments for commercial products and commercial services

Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3805 — Payments for commercial products and commercial services

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Stable record: federal_law:legal_authorities:record_usc_e921e06a246ce1753af59c70
Source file: Laws/federal/codes/united-states-code/title-10/section-3805-payments-for-commercial-products-and-commercial-services--5009d796e7.md
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Source location: Title 10, Chapter 277, § 3805; chapter-277-contract-financing.md

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**(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?req=granuleid:USC-prelim-title10-section3801&num=0&edition=prelim). **(e) Definitions.—** In this section: (1) The term “commercially utilized acquisition strategy” means an acquisition of a service by the head of an agency under terms and conditions that— (A) are similar to the terms and conditions under which such service is available to the public; and (B) provide such service— (i) as a consumption-based solution (as defined in [section 3605 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3605&num=0&edition=prelim)); or (ii) under a technology subscription model or other model based on predetermined pricing for access to such service. (2) The term “covered service” means a commercial service that includes access to or use of any combination of hardware, equipment, software, labor, or services, including access to commercial satellite data and associated services, that is integrated to provide a capability.

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3801 — Authority of agency

**(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

10 U.S.C. § 3001 — Defense acquisition system; element of the defense acquisition system

**(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

10 U.S.C. § 3605 — Authority to acquire consumption-based solutions

**(a) Authority.—** The Secretary of Defense and the Secretaries of the military departments may acquire services through consumption-based solutions. **(b) Guidance Required.—** The Secretary of Defense shall amend the Department of Defense Supplement to the Federal Acquisition Regulation to implement the authority under subsection (a), including creating a new subcategory of services under part 237 of the Department of Defense Supplement to the Federal Acquisition Regulation, entitled “Consumption-based solutions”, that— (1) is any combination of hardware, equipment, software, labor, or services that together provides a seamless capability; (2) has the ability to be metered and billed based on actual usage; (3) has predetermined pricing at fixed-price units; (4) requires the awardee to notify the Department of Defense contracting officer when consumption under the contract reaches 75 percent and 90 percent of the funded amount, respectively, of the contract; and (5) treats modifications to a contract entered into under the authority established in subsection (a) to add new features or capabilities in an amount less than or equal to 25 percent of the total value of such contract, as originally awarded, as procurements made using competitive procedures for the purposes of chapter 221 of this title. **(c) Funding.—** Amounts authorized to be appropriated for acquisitions using the authority under subsection (a)— (1) may be used for expenses for— (A) research, development, test and evaluation; (B) procurement; (C) production; (D) modification; and (E) operation and maintenance; and (2) may be used to enter into incrementally funded contracts or other agreements, including advanced payments. **(d) Consumption-based Solution Defined.—** In this sect

Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3605

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3803 — Security for 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) 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

10 U.S.C. § 3805 — Payments for commercial products and

Page 2566 TITLE 10—ARMED FORCES § 3805 States Code [now 10 U.S.C. 3804(b)], with respect to progress payments for any undefinitized contractual action (as defined in section 2326 of title 10, United States Code [see 10 U.S.C. 3377(b)(1)]; in this section re- ferred to as ‘UCA’) if the Secretary determines that the waiver is necessary due to the national emergency for the Coronavirus Disease 2019 (COVID–19) and— ‘‘(1) a contractor performing the contract for which a UCA is entered into has not already received in- creased progress payments from the Secretary of De- fense on contractual actions other than UCAs; or ‘‘(2) a contractor performing the contract for which a UCA is entered into, and that has received in- creased progress payments from the Secretary of De- fense on contractual actions other than UCAs, can demonstrate that the contractor has promptly pro- vided the amount of the increase to any subcontrac- tors (at any tier), small business concerns (as defined under section 3 of the Small Business Act (15 U.S.C. 632)), or suppliers of the contractor. ‘‘(b) DEFINITIZATION.—With respect to a UCA that not been definitized for a period of 180 days beginning on the date on which such UCA was entered into, the Sec- retary of Defense may only use the waiver authority described in subsection (a) if the Secretary (or a des- ignee at a level not below the head of a contracting ac- tivity) provides a certification to the congressional de- fense committees [Committees on Armed Services and Appropriations of the Senate and the House of Rep- resentatives] that such UCA will be definitized within 60 days after the date on which the waiver is issued. ‘‘(c) SUBMISSION.—For each use of the waiver author- ity under subsection (a), the Secretary of Defense shall s

Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 3805

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