10 U.S.C. § 3707 — Interest and penalties for certain over-

Page 2534 TITLE 10—ARMED FORCES § 3707 resentative of the contracting officer) that, to the best of the contractor’s knowledge and belief, the contractor is entitled to the offset; and (B) the contractor proves that the cost or pricing data were available before the date of agreement on the price of the contract (or price of the modification) or, if applicable consistent with subsection (a)(2), another date agreed upon between the parties, and that the data were not submitted as speci- fied in section 3702(c) of this title before such date. (2) A contractor shall not be allowed to off- set an amount otherwise authorized to be off- set under paragraph (1) if— (A) the certification under section 3702(b) of this title with respect to the cost or pric- ing data involved was known to be false when signed; or (B) the United States proves that, had the cost or pricing data referred to in paragraph (1)(B) been submitted to the United States before the date of agreement on the price of the contract (or price of the modification) or, if applicable consistent with subsection (a)(2), another date agreed upon between the parties, the submission of such cost or pric- ing data would not have resulted in an in- crease in that price in the amount to be off- set. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (g), Jan. 1, 2021, 134 Stat. 4209, 4214.) Editorial Notes CODIFICATION The text of subsec. (e) of section 2306a of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1831(g), was based on Pub. L. 99–500, § 101(c) [title X, § 952(a)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–166, and Pub. L. 99–591, § 101(c) [title X, § 952(a)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–166; Pub. L. 99–661, div. A, title IX, formerly title IV, § 952(a), Nov. 14, 1986, 100 Stat. 3945, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; Pub. L. 103–355, title I, § 1204(1), Oct. 13, 1994, 108 Stat. 3275; Pub. L. 104–106, div. D, title XLIII, § 4321(b)(7)(B), Feb. 10, 1996, 110 Stat. 672. Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–661 added identical sections. Pub. L. 99–591 is a corrected version of Pub. L. 99–500. AMENDMENTS 2021—Pub. L. 116–283, § 1831(g)(1), transferred subsec. (e) of section 2306a of this title to this section, struck out subsec. (e) designation and heading ‘‘Price Reduc- tions for Defective Cost or Pricing Data’’ at beginning, and redesignated pars. (1) to (4) as subsecs. (a) to (d), resepectively. Subsec. (a). Pub. L. 116–283, § 1831(g)(2), after redesig- nation of section 2306a(e)(1) of this title as subsec. (a) of this section, inserted subsec. heading, redesignated subpar. (A) as par. (1), inserted heading, and sub- stituted ‘‘section 3702(b) of this title’’ for ‘‘subsection (a)(2)’’, and redesignated subpar. (B) as par. (2), inserted heading, and substituted ‘‘of this chapter’’ for ‘‘of this section’’. Subsec. (b). Pub. L. 116–283, § 1831(g)(3), after redesig- nation of section 2306a(e)(2) of this title as subsec. (b) of this section, inserted heading and substituted ‘‘sub- section (a)’’ for ‘‘paragraph (1)’’. Subsec. (c). Pub. L. 116–283, § 1831(g)(4)(A)–(D), after redesignation of section 2306a(e)(3) of this title as sub- sec. (c) of this section, inserted heading, redesignated subpar. (A), and its cls. (i) and (ii), and subpars. (B) to (D) as par. (1), subpars. (A) and (B), and pars. (2) to (4), respectively, and substituted ‘‘subsection (a)’’ for ‘‘paragraph (1)’’ in introductory provisions. Subsec. (c)(4). Pub. L. 116–283, § 1831(g)(4)(E), sub- stituted ‘‘section 3702(b) of this title’’ for ‘‘subsection (a)(2)’’. Subsec. (d). Pub. L. 116–283, § 1831(g)(5)(A)–(C), after redesignation of section 2306a(e)(4) of this title as sub- sec. (d) of this section, inserted heading, substituted ‘‘subsection (a)’’ for ‘‘paragraph (1)’’ in introductory provisions, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively. Subsec. (d)(1). Pub. L. 116–283, § 1831(g)(5)(A), (B), (D), inserted heading, substituted ‘‘subsection (a)’’ for ‘‘paragraph (1)’’ in introductory provisions, and redes- ignated cls. (i) and (ii) of former section 2306a(e)(4)(A) as subpars. (A) and (B), respectively. Subsec. (d)(1)(B). Pub. L. 116–283, § 1831(g)(5)(E), sub- stituted ‘‘subsection (a)(2)’’ for ‘‘paragraph (1)(B)’’ and ‘‘section 3702(c) of this title’’ for ‘‘subsection (a)(3)’’. Subsec. (d)(2). Pub. L. 116–283, § 1831(g)(5)(F)(i), (ii), substituted ‘‘paragraph (1)’’ for ‘‘subparagraph (A)’’ in introductory provisions and redesignated cls. (i) and (ii) of former section 2306a(e)(4)(B) as subpars. (A) and (B), respectively. Subsec. (d)(2)(A). Pub. L. 116–283, § 1831(g)(5)(F)(iii), substituted ‘‘section 3702(b) of this title’’ for ‘‘sub- section (a)(2)’’. Subsec. (d)(2)(B). Pub. L. 116–283, § 1831(g)(5)(F)(iv), substituted ‘‘in paragraph (1)(B)’’ for ‘‘in subparagraph (A)(ii)’’ and ‘‘with subsection (a)(2)’’ for ‘‘with para- graph (1)(B)’’. 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. § 3707. Interest and penalties for certain over- payments (a) IN GENERAL.—If the United States makes an overpayment to a contractor under a con- tract subject to this chapter and the overpay- ment was due to the submission by the con- tractor of defective cost or pricing data, the contractor shall be liable to the United States— (1) for interest on the amount of such over- payment, to be computed— (A) for the period beginning on the date the overpayment was made to the contractor and ending on the date the contractor repays the amount of such overpayment to the United States; and (B) at the current rate prescribed by the Secretary of the Treasury under section 6621 of the Internal Revenue Code of 1986; and (2) if the submission of such defective data was a knowing submission, for an additional amount equal to the amount of the overpay- ment. (b) LIABILITY NOT AFFECTED BY REFUSAL TO SUBMIT CERTIFICATION.—Any liability under this section of a contractor that submits cost or pricing data but refuses to submit the certifi- cation required by section 3702(b) of this title with respect to the cost or pricing data shall not be affected by the refusal to submit such certifi- cation. Page 2535 TITLE 10—ARMED FORCES § 3721 (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (h), Jan. 1, 2021, 134 Stat. 4209, 4216; Pub. L. 117–81, div. A, title XVII, § 1701(b)(10)(H), Dec. 27, 2021, 135 Stat. 2134.) Editorial Notes REFERENCES IN TEXT Section 6621 of the Internal Revenue Code of 1986, re- ferred to in subsec. (a)(1)(B), is classified to section 6621 of Title 26, Internal Revenue Code. CODIFICATION The text of subsec. (f) of section 2306a of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1831(h), was based on Pub. L. 99–500, § 101(c) [title X, § 952(a)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–166, and Pub. L. 99–591, § 101(c) [title X, § 952(a)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–166; Pub. L. 99–661, div. A, title IX, formerly title IV, § 952(a), Nov. 14, 1986, 100 Stat. 3945, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; Pub. L. 100–180, div. A, title VIII, § 804(b)(2), Dec. 4, 1987, 101 Stat. 1125; Pub. L. 102–190, div. A, title X, § 1061(a)(9), Dec. 5, 1991, 105 Stat. 1472; Pub. L. 103–355, title I, §§ 1204(1), 1209, Oct. 13, 1994, 108 Stat. 3275, 3277. Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–661 added identical sections. Pub. L. 99–591 is a corrected version of Pub. L. 99–500. AMENDMENTS 2021—Pub. L. 116–283, § 1832(h)(1), transferred subsec. (f) of section 2306a of this title to this section, redesig- nated it as subsec. (a), and redesignated par. (2) as sub- sec. (b). Subsec. (a). Pub. L. 116–283, § 1831(h)(2), as amended by Pub. L. 117–81, § 1701(b)(10)(H), after redesignation of section 2306a(f) of this title as subsec. (a) of this sec- tion, in heading, substituted ‘‘In General’’ for ‘‘Interest and Penalties for Certain Overpayments’’, in introduc- tory provisions, struck out par. (1) designation at be- ginning and substituted ‘‘this chapter’’ for ‘‘this sec- tion’’, and redesignated subpar. (A), its cls. (i) and (ii), and subpar. (B) as par. (1), subpars. (A) and (B), and par. (2), respectively. Subsec. (b). Pub. L. 116–283, § 1831(h)(3), as amended by Pub. L. 117–81, § 1701(b)(10)(H), after redesignation of section 2306a(f)(2) of this title as subsec. (b) of this sec- tion, inserted heading and substituted ‘‘this section’’ for ‘‘this subsection’’ and ‘‘section 3702(b) of this title’’ for ‘‘subsection (a)(2)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–81 applicable as if in- cluded in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Ef- fective Date note below. 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. § 3708. Right to examine contractor records For the purpose of evaluating the accuracy, completeness, and currency of cost or pricing data required to be submitted by this chapter, the head of an agency shall have the authority provided by section 3841(b)(2) of this title. (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (i), Jan. 1, 2021, 134 Stat. 4209, 4216.) Editorial Notes CODIFICATION The text of subsec. (g) of section 2306a of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1831(i), was based on Pub. L. 103–355, title I, § 1205, Oct. 13, 1994, 108 Stat. 3276. AMENDMENTS 2021—Pub. L. 116–283, § 1831(i), transferred subsec. (g) of section 2306a of this title to this section, struck out subsec. (g) designation and heading ‘‘Right of United States To Examine Contractor Records’’ at beginning, and substituted ‘‘this chapter’’ for ‘‘this section’’ and ‘‘section 3841(b)(2)’’ for ‘‘section 2313(a)(2)’’. 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. CHAPTER 272—[Reserved] Sec. 3721. [Reserved]. 3722. [Reserved]. 3723. [Reserved]. 3724. [Reserved]. Editorial Notes AMENDMENTS 2021—Pub. L. 117–81, div. A, title XVII, § 1701(i)(6), Dec. 27, 2021, 135 Stat. 2141, amended Pub. L. 116–283, div. A, title XVIII, § 1831(k), Jan. 1, 2021, 134 Stat. 4217, which added this analysis, by substituting ‘‘[Reserved]’’ for ‘‘OTHER PROVISIONS RELATING TO COST OR PRIC- ING DATA’’ in chapter heading and ‘‘[Reserved]’’ for ‘‘Evaluating the reasonableness of price: guidance and training’’ in item 3721, for ‘‘Grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards’’ in item 3722, for ‘‘Streamlining awards for innovative technology projects: pilot program’’ in item 3723, and for ‘‘Risk- based contracting for smaller contract actions under Truth in Negotiations Act: pilot program’’ in item 3724. § 3721. [Reserved] (Added Pub. L. 116–283, div. A, title XVIII, § 1831(k), Jan. 1, 2021, 134 Stat. 4217; amended Pub. L. 117–81, div. A, title XVII, § 1701(i)(6)(B), Dec. 27, 2021, 135 Stat. 2141.) Editorial Notes PRIOR PROVISIONS A prior section 3721, act Aug. 10, 1956, ch. 1041, 70A Stat. 214; Pub. L. 85–861, § 1(92)(A), Sept. 2, 1958, 72 Stat. 1482, related to hospital benefits for members of Army, other than of Regular Army, prior to repeal by Pub. L. 99–661, div. A, title VI, § 604(f)(1)(A), (g), Nov. 14, 1986, 100 Stat. 3877, 3878, applicable with respect to persons who, after Nov. 14, 1986, incur or aggravate an injury, illness, or disease or die. AMENDMENTS 2021—Pub. L. 117–81, § 1701(i)(6)(B), amended Pub. L. 116–283, § 1831(k), which enacted this section, by adding section 3721 designation and catchline ‘‘[Reserved]’’ and striking out former section 3721 designation and catch- line ‘‘Evaluating the reasonableness of price: guidance and training’’.