10 U.S.C. § 3374 — Undefinitized contractual actions: allow-

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 section 2326 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1819(e), was based on Pub. L. 99–500, § 101(c) [title X, § 908(d)(1)(A)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–141, and Pub. L. 99–591, § 101(c) [title X, § 908(d)(1)(A)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–141; Pub. L. 99–661, div. A, title IX, formerly title IV, § 908(d)(1)(A), Nov. 14, 1986, 100 Stat. 3921, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; Pub. L. 114–328, div. A, title VIII, § 811(1), Dec. 23, 2016, 130 Stat. 2268; Pub. L. 115–91, div. A, title VIII, § 815(a)(1), Dec. 12, 2017, 131 Stat. 1462. Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–661 added identical sub- sections. AMENDMENTS 2021—Pub. L. 116–283, § 1819(e)(1)(A), transferred sub- sec. (f) of section 2326 of this title to this section and struck out subsec. (f) designation and heading ‘‘Allow- able Profit’’ at beginning. Subsec. (a). Pub. L. 116–283, § 1819(e)(1)(B), (2), redesig- nated par. (1) of former section 2326(f) of this title as subsec. (a) of this section, inserted heading, and redes- ignated subpars. (A) and (B) as pars. (1) and (2), respec- tively. Subsec. (b). Pub. L. 116–283, § 1819(e)(1)(B), (3), redesig- nated par. (2) of former section 2326(f) of this title as subsec. (b) of this section and inserted heading. 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. § 3375. Undefinitized contractual actions: time limit No undefinitized contractual action may ex- tend beyond 90 days without a written deter- mination by the Secretary of the military de- partment concerned, the head of the Defense Agency concerned, the commander of the com- batant command concerned, or the Under Sec- retary of Defense for Acquisition and Sustainment (as applicable) that it is in the best interests of the military department, the De- fense Agency, the combatant command, or the Department of Defense, respectively, to con- tinue the action. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1819(a), (f), Jan. 1, 2021, 134 Stat. 4189, 4190.) Editorial Notes CODIFICATION The text of subsec. (g) of section 2326 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1819(f), was based on Pub. L. 114–328, div. A, title VIII, § 811(3), Dec. 23, 2016, 130 Stat. 2268; Pub. L. 115–91, div. A, title VIII, § 815(a)(1), Dec. 12, 2017, 131 Stat. 1462; Pub. L. 116–92, div. A, title IX, § 902(50), Dec. 20, 2019, 133 Stat. 1548. PRIOR PROVISIONS A prior section 3375, added Pub. L. 85–861, § 1(80)(E), Sept. 2, 1958, 72 Stat. 1475, related to transfer or dis- charge of reserve generals ceasing to occupy commen- surate positions, prior to repeal by Pub. L. 103–337, div. A, title XVI, §§ 1629(a)(1), 1691(b)(1), Oct. 5, 1994, 108 Stat. 2963, 3026, effective Oct. 1, 1996. See section 14314(a) of this title. AMENDMENTS 2021—Pub. L. 116–283, § 1819(f), transferred subsec. (g) of section 2326 of this title to this section and struck out subsec. (g) designation and heading ‘‘Time Limit’’ at beginning. 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. § 3377. Inapplicability to Coast Guard and Na- tional Aeronautics and Space Administra- tion; definitions (a) APPLICABILITY.—This chapter does not apply to the Coast Guard or the National Aero- nautics and Space Administration. (b) DEFINITIONS.—In this chapter: (1) The term ‘‘undefinitized contractual ac- tion’’ means a new procurement action en-