10 U.S.C. § 3746 — Applicability of regulations to subcontrac-

Page 2542 TITLE 10—ARMED FORCES § 3746 § 3746. Applicability of regulations to subcontrac- tors The regulations referred to in sections 3744 and 3745(a) and (b) of this title shall require prime contractors of a covered contract, to the maximum extent practicable, to apply the provi- sions of such regulations to all subcontractors of the covered contract. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (e), Jan. 1, 2021, 134 Stat. 4218, 4221.) Editorial Notes CODIFICATION The text of subsec. (g) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(e), was based on Pub. L. 99–145, title IX, § 911(a)(1), Nov. 8, 1985, 99 Stat. 684; Pub. L. 103–355, title II, § 2101(a)(7), Oct. 13, 1994, 108 Stat. 3308. Another section 1832(e) of Pub. L. 116–283 amended section 3745 of this title. PRIOR PROVISIONS A prior section 3746 was renumbered section 7276 of this title. AMENDMENTS 2021—Pub. L. 116–283, § 1832(e), transferred subsec. (g) of section 2324 of this title to this section, struck out subsec. (g) designation and heading ‘‘Applicability of Regulations to Subcontractors’’ at beginning, and sub- stituted ‘‘sections 3744 and 3745(a) and (b) of this title’’ for ‘‘subsections (e) and (f)(1)’’. 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. § 3747. Contractor certification (a) CONTENT AND FORM.—A proposal for settle- ment of indirect costs applicable to a covered contract shall include a certification by an offi- cial of the contractor that, to the best of the certifying official’s knowledge and belief, all in- direct costs included in the proposal are allow- able. Any such certification shall be in a form prescribed in the Federal Acquisition Regula- tion. (b) WAIVER.—The head of the agency or the Secretary of the military department concerned may, in an exceptional case, waive the require- ment for certification under subsection (a) in the case of any contract if the head of the agen- cy or the Secretary— (1) determines in such case that it would be in the interest of the United States to waive such certification; and (2) states in writing the reasons for that de- termination and makes such determination available to the public. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (f), Jan. 1, 2021, 134 Stat. 4218, 4221.) Editorial Notes CODIFICATION The text of subsec. (h) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(f), was based on Pub. L. 99–145, title IX, § 911(a)(1), Nov. 8, 1985, 99 Stat. 684; Pub. L. 99–190, § 101(b) [title VIII, § 8112(a)(2)], Dec. 19, 1985, 99 Stat. 1185, 1223; Pub. L. 103–355, title II, § 2101(a)(8), Oct. 13, 1994, 108 Stat. 3308; Pub. L. 104–106, div. D, title XLIII, § 4321(b)(9)(B), Feb. 10, 1996, 110 Stat. 672. PRIOR PROVISIONS A prior section 3746 was renumbered section 7276 of this title. AMENDMENTS 2021—Pub. L. 116–283, § 1832(f)(1)(A), transferred sub- sec. (h) of section 2324 of this title to this section and struck out subsec. (h) designation and heading ‘‘Con- tractor Certification Required’’ at beginning. Subsec. (a). Pub. L. 116–283, § 1832(f)(1)(B), (2), redesig- nated par. (1) of section 2324(h) of this title as subsec. (a) of this section and inserted heading. Subsec. (b). Pub. L. 116–283, § 1832(f)(1)(B), (3), redesig- nated par. (2) of section 2324(h) of this title as subsec. (b) of this section, inserted heading, substituted ‘‘sub- section (a)’’ for ‘‘paragraph (1)’’ in introductory provi- sions, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively. 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. § 3748. Penalties for submission of cost known as not allowable The submission to an agency of a proposal for settlement of costs for any period after such costs have been accrued that includes a cost that is expressly specified by statute or regula- tion as being unallowable, with the knowledge that such cost is unallowable, shall be subject to the provisions of section 287 of title 18 and sec- tion 3729 of title 31. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1832(a), (g), Jan. 1, 2021, 134 Stat. 4218, 4222.) Editorial Notes CODIFICATION The text of subsec. (i) of section 2324 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1832(g), was based on Pub. L. 99–145, title IX, § 911(a)(1), Nov. 8, 1985, 99 Stat. 684; Pub. L. 103–355, title II, § 2101(a)(9), Oct. 13, 1994, 108 Stat. 3308. PRIOR PROVISIONS A prior section 3748 was renumbered section 7278 of this title. AMENDMENTS 2021—Pub. L. 116–283, § 1832(g), transferred subsec. (i) of section 2324 of this title to this section and struck out subsec. (i) designation and heading ‘‘Penalties for Submission of Cost Known as Not Allowable’’ at begin- ning.