10 U.S.C. § 4654 — Prohibition against doing business with

Page 2815 TITLE 10—ARMED FORCES § 4654 div. A, title VIII, § 801, Feb. 10, 1996, 110 Stat. 389; Pub. L. 111–350, § 5(b)(5), Jan. 4, 2011, 124 Stat. 3842; renumbered § 4651, Pub. L. 116–283, div. A, title XVIII, § 1862(b), Jan. 1, 2021, 134 Stat. 4277.) HISTORICAL AND REVISION NOTES Revised section Source (U.S. Code) Source (Statutes at Large) 2207 ......... 5:174d. June 30, 1954, ch. 432, § 719, 68 Stat. 353. The following substitutions are made: ‘‘spent’’ for ‘‘expended’’; ‘‘United States’’ for ‘‘Government’’; ‘‘if a contract is terminated under clause (1)’’ for ‘‘that in the event any such contract is so terminated’’; and ‘‘has . . . that it would have had if’’ for ‘‘shall be enti- tled . . . to pursue . . . as it could pursue in the event of’’. The word ‘‘official’’ is inserted for clarity. The words ‘‘entered into after June 30, 1954’’ are omitted as executed. Editorial Notes PRIOR PROVISIONS A prior section 4651, Aug. 10, 1956, ch. 1041, 70A Stat. 260; Pub. L. 99–145, title XIII, § 1301(b(3)(C), Nov. 8, 1985, 99 Stat. 736, related to issuance of arms, tentage, and equipment necessary for proper military training to in- stitutions not maintaining units of the Reserve Offi- cers’ Training Corps, prior to repeal by Pub. L. 112–239, div. A, title V, § 552(b), Jan. 2, 2013, 126 Stat. 1741. AMENDMENTS 2021—Pub. L. 116–283 renumbered section 2207 of this title as this section. 2011—Subsec. (b). Pub. L. 111–350 substituted ‘‘section 134 of title 41’’ for ‘‘section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11))’’. 1996—Pub. L. 104–106 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–283 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. § 4652. Prohibition on use of funds for docu- menting economic or employment impact of certain acquisition programs No funds appropriated by the Congress may be obligated or expended to assist any contractor of the Department of Defense in preparing any material, report, lists, or analysis with respect to the actual or projected economic or employ- ment impact in a particular State or congres- sional district of an acquisition program for which all research, development, testing, and evaluation has not been completed. (Added Pub. L. 103–355, title VII, § 7202(a)(1), Oct. 13, 1994, 108 Stat. 3379, § 2247; renumbered § 2249, Pub. L. 104–106, div. D, title XLIII, § 4321(b)(2)(A), Feb. 10, 1996, 110 Stat. 672; renumbered § 4652, Pub. L. 116–283, div. A, title XVIII, § 1862(b), Jan. 1, 2021, 134 Stat. 4277.) Editorial Notes PRIOR PROVISIONS A prior section 4652 was renumbered section 7652 of this title. AMENDMENTS 2021—Pub. L. 116–283 renumbered section 2249 of this title as this section. 1996—Pub. L. 104–106 renumbered section 2247 of this title as section 2249. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–283 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. EFFECTIVE DATE For effective date and applicability of section, see section 10001 of Pub. L. 103–355 set out as an Effective Date of 1994 Amendment note under section 8752 of this title. § 4653. Prohibition on use of funds to relieve eco- nomic dislocations (a) In order to help avoid the uneconomic use of Department of Defense funds in the procure- ment of goods and services, the Congress finds that it is necessary to prohibit the use of such funds for certain purposes. (b) No funds appropriated to or for the use of the Department of Defense may be used to pay, in connection with any contract awarded by the Department of Defense, a price differential for the purpose of relieving economic dislocations. (Added Pub. L. 97–86, title IX, § 913(a)(1), Dec. 1, 1981, 95 Stat. 1123, § 2392; renumbered § 4653, Pub. L. 116–283, div. A, title XVIII, § 1862(b), Jan. 1, 2021, 134 Stat. 4277.) Editorial Notes PRIOR PROVISIONS A prior section 4653 was renumbered section 7653 of this title. AMENDMENTS 2021—Pub. L. 116–283 renumbered section 2392 of this title as this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–283 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. § 4654. Prohibition against doing business with certain offerors or contractors (a)(1) Except as provided in paragraph (2), the Secretary of a military department may not so- licit an offer from, award a contract to, extend an existing contract with, or, when approval by the Secretary of the award of a subcontract is required, approve the award of a subcontract to, an offeror or contractor which to the Sec- retary’s knowledge has been debarred or sus- pended by another Federal agency unless— (A) in the case of debarment, the debarment of the offeror or contractor by all other agen- cies has been terminated or the period of time specified for such debarment has expired; and Page 2816 TITLE 10—ARMED FORCES § 4655 (B) in the case of a suspension, the period of time specified by all other agencies for the suspension of the offeror or contractor has ex- pired. (2) Paragraph (1) does not apply in any case in which the Secretary concerned determines that there is a compelling reason to solicit an offer from, award a contract to, extend a contract with, or approve a subcontract with such offeror or contractor. (b) Whenever the Secretary concerned makes a determination described in subsection (a)(2), he shall, at the time of the determination, trans- mit a notice to the Administrator of General Services describing the determination. The Ad- ministrator of General Services shall maintain each such notice on a publicly accessible website to the maximum extent practicable. (c) In this section: (1) The term ‘‘debar’’ means to exclude, pur- suant to established administrative proce- dures, from Government contracting and sub- contracting for a specified period of time com- mensurate with the seriousness of the failure or offense or the inadequacy of performance. (2) The term ‘‘suspend’’ means to disqualify, pursuant to established administrative proce- dures, from Government contracting and sub- contracting for a temporary period of time be- cause a concern or individual is suspected of engaging in criminal, fraudulent, or seriously improper conduct. (d) The Secretary of Defense shall prescribe in regulations a requirement that each contractor under contract with the Department of Defense shall require each contractor to whom it awards a contract (in this section referred to as a sub- contractor) to disclose to the contractor wheth- er the subcontractor is or is not, as of the time of the award of the subcontract, debarred or sus- pended by the Federal Government from Gov- ernment contracting or subcontracting. The re- quirement shall apply to any subcontractor whose subcontract is in an amount greater than the simplified acquisition threshold (as defined in section 134 of title 41). The requirement shall not apply in the case of a subcontract for the ac- quisition of commercial products or commercial services (as defined in sections 103 and 103a, re- spectively, of title 41). (Added Pub. L. 97–86, title IX, § 914(a), Dec. 1, 1981, 95 Stat. 1124, § 2393; amended Pub. L. 100–180, div. A, title XII, § 1231(17), Dec. 4, 1987, 101 Stat. 1161; Pub. L. 101–510, div. A, title VIII, § 813, Nov. 5, 1990, 104 Stat. 1596; Pub. L. 102–190, div. A, title X, § 1061(a)(11), Dec. 5, 1991, 105 Stat. 1473; Pub. L. 103–355, title IV, § 4102(e), title VIII, § 8105(c), Oct. 13, 1994, 108 Stat. 3340, 3392; Pub. L. 111–350, § 5(b)(24), Jan. 4, 2011, 124 Stat. 3844; Pub. L. 113–66, div. A, title VIII, § 813, Dec. 26, 2013, 127 Stat. 808; Pub. L. 115–232, div. A, title VIII, § 836(e)(3), Aug. 13, 2018, 132 Stat. 1869; renum- bered § 4654, Pub. L. 116–283, div. A, title XVIII, § 1862(b), Jan. 1, 2021, 134 Stat. 4277.) Editorial Notes PRIOR PROVISIONS A prior section 4654 was renumbered section 7654 of this title. AMENDMENTS 2021—Pub. L. 116–283 renumbered section 2393 of this title as this section. 2018—Subsec. (d). Pub. L. 115–232 substituted ‘‘com- mercial products or commercial services (as defined in sections 103 and 103a, respectively, of title 41)’’ for ‘‘commercial items (as defined in section 103 of title 41)’’. 2013—Subsec. (b). Pub. L. 113–66 substituted ‘‘on a publicly accessible website to the maximum extent practicable’’ for ‘‘in a file available for public inspec- tion’’. 2011—Subsec. (d). Pub. L. 111–350 substituted ‘‘section 134 of title 41)’’ for ‘‘section 4(11) of the Office of Fed- eral Procurement Policy Act (41 U.S.C. 403(11)))’’ and ‘‘section 103 of title 41)’’ for ‘‘section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’. 1994—Subsec. (d). Pub. L. 103–355 substituted ‘‘greater than the simplified acquisition threshold (as defined in section 4(11) of the Office of Federal Procurement Pol- icy Act (41 U.S.C. 403(11))).’’ for ‘‘above the small pur- chase amount established in section 2304(g) of this title.’’ in second sentence and inserted at end ‘‘The re- quirement shall not apply in the case of a subcontract for the acquisition of commercial items (as defined in section 4(12) of the Office of Federal Procurement Pol- icy Act (41 U.S.C. 403(12))).’’ 1991—Subsec. (d). Pub. L. 102–190 substituted ‘‘Federal Government’’ for ‘‘Federal government’’. 1990—Subsec. (d). Pub. L. 101–510 added subsec. (d). 1987—Subsec. (c). Pub. L. 100–180 inserted ‘‘The term’’ after each par. designation and revised first word in quotes in each par. to make initial letter of such word lowercase. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–283 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. EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115–232, set out as an Effective Date of 2018 Amend- ment; Savings Provision note under section 453b of Title 6, Domestic Security. EFFECTIVE DATE OF 1994 AMENDMENT For effective date and applicability of amendment by Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set out as a note under section 8752 of this title. § 4655. Prohibition of contractors limiting sub- contractor sales directly to the United States (a) Each contract for the purchase of supplies or services made by the Department of Defense shall provide that the contractor will not— (1) enter into any agreement with a subcon- tractor under the contract that has the effect of unreasonably restricting sales by the sub- contractor directly to the United States of any item or process (including computer soft- ware) made or furnished by the subcontractor under the contract (or any follow-on produc- tion contract); or (2) otherwise act to restrict unreasonably the ability of a subcontractor to make sales to the United States described in clause (1). (b) This section does not prohibit a contractor from asserting rights it otherwise has under law. (c) This section does not apply to a contract that is for an amount not greater than the sim-