10 U.S.C. § 4022 — Authority of the Department of Defense to

Page 2624 TITLE 10—ARMED FORCES § 4022 Services and Appropriations of the Senate and the House of Representatives] a report on the use of other transaction authority to carry out prototype projects during the preceding fiscal year. Each report shall summarize the data collected under subsection (a) on the nature and extent of each such use of the author- ity, including a description— ‘‘(A) of the participants to an agreement entered into pursuant to the authority of subsection (a) of section 2371b of title 10, United States Code [now 10 U.S.C. 4022], or a follow-on contract or transaction entered into pursuant to the authority of sub- section (f) of such section; ‘‘(B) of the quantity of prototype projects to be produced pursuant to such an agreement, follow-on contract, or transaction; ‘‘(C) of the amount of payments made pursuant to each such agreement, follow-on contract, or trans- action; ‘‘(D) of the purpose, description, and status of prototype projects carried out pursuant to each such agreement, follow-on contract, or transaction; and ‘‘(E) including case examples, of the successes and challenges with using the authority of such sub- section (a) or (f). ‘‘(2) FORM OF REPORT.—A report required under this subsection shall be submitted in unclassified form without any designation relating to dissemination control, but may contain a classified annex.’’ PREFERENCE FOR USE OF OTHER TRANSACTIONS AND EXPERIMENTAL AUTHORITY Pub. L. 115–91, div. A, title VIII, § 867, Dec. 12, 2017, 131 Stat. 1495, provided that: ‘‘In the execution of science and technology and prototyping programs, the Sec- retary of Defense shall establish a preference, to be ap- plied in circumstances determined appropriate by the Secretary, for using transactions other than contracts, cooperative agreements, and grants entered into pursu- ant to sections 2371 and 2371b of title 10, United States Code [now 10 U.S.C. 4021 and 4022], and authority for procurement for experimental purposes pursuant to section 2373 of title 10, United States Code [now 10 U.S.C. 4023].’’ § 4022. Authority of the Department of Defense to carry out certain prototype projects (a) AUTHORITY.—(1) Subject to paragraph (2), the Director of the Defense Advanced Research Projects Agency, the Director of the Defense In- novation Unit, the Secretary of a military de- partment, or any other official designated by the Secretary of Defense may, under the author- ity of section 4021 of this title, carry out proto- type projects that are directly relevant to en- hancing the mission effectiveness of personnel of the Department of Defense or improving plat- forms, systems, components, or materials pro- posed to be acquired or developed by the Depart- ment of Defense, or to improvement of plat- forms, systems, components, or materials in use by the armed forces. (2) The authority of this section— (A) may be exercised for a transaction for a prototype project that is expected to cost the Department of Defense in excess of $100,000,000 but not in excess of $500,000,000 (including all options) only upon a written determination by the head of the contracting activity, or, for the Defense Advanced Research Projects Agen- cy, the Defense Innovation Unit, or the Missile Defense Agency, the director of the agency that— (i) the requirements of subsection (d) will be met; and (ii) the use of the authority of this section is essential to promoting the success of the prototype project; (B) may be exercised for a transaction for a prototype project that is expected to cost the Department of Defense in excess of $500,000,000 (including all options) only if— (i) the senior procurement executive for the agency as designated for the purpose of section 1702(c) of title 41, or, for the Defense Advanced Research Projects Agency, the De- fense Innovation Unit, or the Missile De- fense Agency, the director of the agency, de- termines in writing that— (I) the requirements of subsection (d) will be met; and (II) the use of the authority of this sec- tion is essential to meet critical national security objectives; and (ii) the congressional defense committees are notified in writing at least 30 days before such authority is exercised; and (C) may be exercised for a transaction for a follow-on production contract or transaction that is awarded pursuant to subsection (f) and expected to cost the Department of Defense in excess of $100,000,000 (including all options) only if a covered official— (i) determines in writing that— (I) the requirements of subsection (d) were met for the prior transaction for the prototype project that provided for the award of the follow-on production contract or transaction, and the requirements of subsection (f) will be met; and (II) the use of the authority of this sec- tion is essential to meet critical national security objectives; and (ii) notifies the congressional defense com- mittees in writing of the determinations re- quired under clause (i) at the time such au- thority is exercised. (3) The authority of the head of the con- tracting activity, director of the Defense Ad- vanced Research Projects Agency, director of the Defense Innovation Unit, director of the Missile Defense Agency, or the senior procure- ment executive, as applicable, under paragraph (2) may not be delegated. (b) EXERCISE OF AUTHORITY.— (1) Subsection (e)(2) of such section 4021 shall not apply to projects carried out under sub- section (a). (2) To the maximum extent practicable, competitive procedures shall be used when en- tering into agreements to carry out the proto- type projects under subsection (a). (c) COMPTROLLER GENERAL ACCESS TO INFOR- MATION.—(1) Each agreement entered into by an official referred to in subsection (a) to carry out a project under that subsection that provides for payments in a total amount in excess of $5,000,000 shall include a clause that provides for the Comptroller General, in the discretion of the Comptroller General, to examine the records of any party to the agreement or any entity that participates in the performance of the agree- ment. Page 2625 TITLE 10—ARMED FORCES § 4022 (2) The requirement in paragraph (1) shall not apply with respect to a party or entity, or a sub- ordinate element of a party or entity, that has not entered into any other agreement that pro- vides for audit access by a Government entity in the year prior to the date of the agreement. (3)(A) The right provided to the Comptroller General in a clause of an agreement under para- graph (1) is limited as provided in subparagraph (B) in the case of a party to the agreement, an entity that participates in the performance of the agreement, or a subordinate element of that party or entity if the only agreements or other transactions that the party, entity, or subordi- nate element entered into with Government en- tities in the year prior to the date of that agree- ment are cooperative agreements or trans- actions that were entered into under this sec- tion or section 4021 of this title. (B) The only records of a party, other entity, or subordinate element referred to in subpara- graph (A) that the Comptroller General may ex- amine in the exercise of the right referred to in that subparagraph are records of the same type as the records that the Government has had the right to examine under the audit access clauses of the previous agreements or transactions re- ferred to in such subparagraph that were entered into by that particular party, entity, or subordi- nate element. (4) The head of the contracting activity that is carrying out the agreement may waive the ap- plicability of the requirement in paragraph (1) to the agreement if the head of the contracting activity determines that it would not be in the public interest to apply the requirement to the agreement. The waiver shall be effective with respect to the agreement only if the head of the contracting activity transmits a notification of the waiver to Congress and the Comptroller General before entering into the agreement. The notification shall include the rationale for the determination. (5) The Comptroller General may not examine records pursuant to a clause included in an agreement under paragraph (1) more than three years after the final payment is made by the United States under the agreement. (d) APPROPRIATE USE OF AUTHORITY.—(1) The Secretary of Defense shall ensure that no offi- cial of an agency enters into a transaction (other than a contract, grant, or cooperative agreement) for a prototype project under the au- thority of this section unless one of the fol- lowing conditions is met: (A) There is at least one nontraditional de- fense contractor or nonprofit research institu- tion participating to a significant extent in the prototype project. (B) All significant participants in the trans- action other than the Federal Government are small businesses (including small businesses participating in a program described under section 9 of the Small Business Act (15 U.S.C. 638)) or nontraditional defense contractors. (C) At least one third of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government. (D) The senior procurement executive for the agency determines in writing that excep- tional circumstances justify the use of a transaction that provides for innovative busi- ness arrangements or structures that would not be feasible or appropriate under a con- tract, or would provide an opportunity to ex- pand the defense supply base in a manner that would not be practical or feasible under a con- tract. (2)(A) Except as provided in subparagraph (B), the amounts counted for the purposes of this subsection as being provided, or to be provided, by a party to a transaction with respect to a prototype project that is entered into under this section other than the Federal Government do not include costs that were incurred before the date on which the transaction becomes effective. (B) Costs that were incurred for a prototype project by a party after the beginning of nego- tiations resulting in a transaction (other than a contract, grant, or cooperative agreement) with respect to the project before the date on which the transaction becomes effective may be count- ed for purposes of this subsection as being pro- vided, or to be provided, by the party to the transaction if and to the extent that the official responsible for entering into the transaction de- termines in writing that— (i) the party incurred the costs in anticipa- tion of entering into the transaction; and (ii) it was appropriate for the party to incur the costs before the transaction became effec- tive in order to ensure the successful imple- mentation of the transaction. (3) The requirements of this subsection do not apply to follow-on production contracts or transactions under subsection (f). (e) DEFINITIONS.—In this section: (1) The term ‘‘covered official’’ means— (A) a service acquisition executive; (B) the Director of the Defense Advanced Research Projects Agency; (C) the Director of the Defense Innovation Unit; (D) the Director of the Missile Defense Agency; (E) the Undersecretary of Defense for Ac- quisition and Sustainment; or (F) the Undersecretary of Defense for Re- search and Engineering. (2) The term ‘‘nontraditional defense con- tractor’’ has the meaning given the term under section 3014 of this title. (3) The term ‘‘service acquisition executive’’ has the meaning given that term in section 101(a) of this title. (4) The term ‘‘small business’’ means a small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632). (5) The term ‘‘prototype project’’ includes a project that addresses— (A) a proof of concept, model, or process, including a business process; (B) reverse engineering to address obsoles- cence; (C) a pilot or novel application of commer- cial technologies for defense purposes; (D) agile development activity; (E) the creation, design, development, or demonstration of operational utility; or (F) any combination of subparagraphs (A) through (E). Page 2626 TITLE 10—ARMED FORCES § 4022 1 See References in Text note below. (6) The term ‘‘follow-on production contract or transaction’’ means a contract or trans- action to produce, sustain, or otherwise imple- ment the results of a successfully completed prototype project for continued or expanded use by the Department of Defense. (f) FOLLOW-ON PRODUCTION CONTRACTS OR TRANSACTIONS.—(1) A transaction entered into under this section for a prototype project may provide for the award of a follow-on production contract or transaction to the participants in the transaction. A transaction includes all indi- vidual prototype subprojects awarded under the transaction to a consortium of United States in- dustry and academic institutions. A follow-on production award may be provided for in a transaction entered into under this section for a prototype project, awarded with respect to such a transaction as one or more separate awards, or a combination thereof. (2) A follow-on production contract or trans- action provided for in a transaction under para- graph (1), one or more separate awards of follow- on production contracts or transactions with re- spect to a transaction described in such para- graph, or a combination thereof, may be award- ed to the participants in the transaction with- out the use of competitive procedures, notwith- standing the requirements of chapter 221 of this title and even if explicit notification was not listed within the request for proposal for the transaction if— (A) competitive procedures were used for the selection of parties for participation in the transaction; and (B) the participants in the transaction suc- cessfully completed the prototype project pro- vided for in the transaction. (3) A follow-on production contract or trans- action may be awarded, pursuant to this sub- section, when the Department determines that an individual prototype or prototype subproject as part of a consortium is successfully com- pleted by the participants. (4) Award of a follow-on production contract or transaction pursuant to the terms under this subsection is not contingent upon the successful completion of all activities within a consortium as a condition for an award for follow-on produc- tion of a successfully completed prototype or prototype subproject within that consortium. (5) Contracts and transactions entered into pursuant to this subsection may be awarded using the authority in subsection (a), under the authority of chapter 137 1 of this title, or under such procedures, terms, and conditions as the Secretary of Defense may establish by regula- tion. (g) AUTHORITY TO PROVIDE PROTOTYPES AND FOLLOW-ON PRODUCTION ITEMS AS GOVERNMENT- FURNISHED EQUIPMENT.—An agreement entered into pursuant to the authority of subsection (a) or a follow-on contract or transaction entered into pursuant to the authority of subsection (f) may provide for prototypes or follow-on produc- tion items to be provided to another contractor as Government-furnished equipment. (h) APPLICABILITY OF PROCUREMENT ETHICS RE- QUIREMENTS.—An agreement entered into under the authority of this section shall be treated as a Federal agency procurement for the purposes of chapter 21 of title 41. (i) PILOT AUTHORITY FOR USE OF OTHER TRANS- ACTIONS FOR INSTALLATION OR FACILITY PROTO- TYPING.— (1) IN GENERAL.—The Secretary of Defense or the Secretary of a military department may establish a pilot program under which the Sec- retary may, under the authority of this sec- tion, carry out prototype projects that are di- rectly relevant to enhancing the ability of the Department of Defense to prototype the de- sign, development, or demonstration of new construction techniques or technologies to im- prove military installations or facilities (as such terms are defined in section 2801 of this title). (2) LIMITS.—(A) In carrying out prototype projects under the pilot program established under paragraph (1)— (i) not more than two prototype projects may begin to be carried out per fiscal year under such pilot program; and (ii) the aggregate value of all transactions entered into under such pilot program may not exceed $300,000,000. (B) The requirements of this paragraph shall not apply to projects carried out for the pur- pose of repairing a facility. (3) USE OF AMOUNTS.—The Secretary of De- fense or the Secretary of a military depart- ment may carry out prototype projects under the pilot program established under paragraph (1) using amounts available to the Secretary of Defense or the Secretary of a military de- partment (as applicable) for military construc- tion, operation and maintenance, or research, development, test, and evaluation, notwith- standing— (A) subchapters I and III of chapter 169 of this title; and (B) chapters 221 and 223 of this title. (4) SUNSET.— (A) IN GENERAL.—Except as provided in subparagraph (B), the authority to carry out prototype projects under the pilot program established under paragraph (1) shall termi- nate on September 30, 2030. (B) ONGOING PROJECT EXCEPTION.—Subpara- graph (A) shall not apply with respect to prototype projects being carried out under the pilot program established under para- graph (1) on the date described in subpara- graph (A). (Added Pub. L. 114–92, div. A, title VIII, § 815(a)(1), Nov. 25, 2015, 129 Stat. 893, § 2371b; amended Pub. L. 115–91, div. A, title II, § 216, title VIII, § 864, Dec. 12, 2017, 131 Stat. 1328, 1494; Pub. L. 115–232, div. A, title II, § 211, Aug. 13, 2018, 132 Stat. 1674; Pub. L. 116–92, div. A, title XVII, § 1731(a)(46), Dec. 20, 2019, 133 Stat. 1814; re- numbered § 4022 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1841(b)(1), (2)(C), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4243, 4294; Pub. L. 117–81, div. A, title VIII, § 821(b), title XVII, § 1701(u)(2)(B), (F)(i)(IV), Dec. 27, 2021, 135 Stat. 1825, 2151; Pub. L. 117–263, div. A, title VIII, §§ 842, 843, Dec. 23, 2022, 136 Stat. 2717, 2718; Pub. L. 118–31, div. A, title VIII, §§ 821, 822(a), title IX, Page 2627 TITLE 10—ARMED FORCES § 4022 § 913(a), Dec. 22, 2023, 137 Stat. 326, 327, 367; Pub. L. 118–159, div. A, title VIII, §§ 816–818(a), Dec. 23, 2024, 138 Stat. 1981, 1982.) Editorial Notes REFERENCES IN TEXT Chapter 137 of this title, referred to in subsec. (f)(5), was repealed by Pub. L. 116–283, div. A, title XVIII, § 1881(a), Jan. 1, 2021, 134 Stat. 4293, effective Jan. 1, 2022, in conjunction with the transfer and reorganiza- tion of acquisition provisions in this title by Pub. L. 116–283, div. A, title XVIII, Jan. 1, 2022, 134 Stat. 4149. For definition of ‘‘chapter 137 legacy provisions’’, see section 3016 of this title. PRIOR PROVISIONS A prior section 4022, act Aug. 10, 1956, ch. 1041, 70A Stat. 233, related to employment of contract surgeons in an emergency, prior to repeal by Pub. L. 98–94, title IX, § 932(b)(1), (f) Sept. 24, 1983, 97 Stat. 650, effective Oct. 1, 1983, with continuation provision for existing contracts. AMENDMENTS 2024—Subsec. (a)(2)(A). Pub. L. 118–159, § 816(1)(A), sub- stituted ‘‘head of the contracting activity’’ for ‘‘senior procurement executive for the agency as designated for the purpose of section 1702(c) of title 41’’ in introduc- tory provisions. Subsec. (a)(2)(B)(i). Pub. L. 118–159, § 816(1)(B), sub- stituted ‘‘senior procurement executive for the agency as designated for the purpose of section 1702(c) of title 41, or, for the Defense Advanced Research Projects Agency, the Defense Innovation Unit, or the Missile Defense Agency, the director of the agency,’’ for ‘‘Under Secretary of Defense for Research and Engi- neering or the Under Secretary of Defense for Acquisi- tion and Sustainment’’ in introductory provisions. Subsec. (a)(3). Pub. L. 118–159, § 816(2), amended par. (3) generally. Prior to amendment, par. (3) read as fol- lows: ‘‘The authority of a senior procurement executive or director of the Defense Advanced Research Projects Agency, Defense Innovation Unit, or Missile Defense Agency under paragraph (2)(A), and the authority of the Under Secretaries of Defense under paragraph (2)(B), may not be delegated.’’ Subsec. (e)(6). Pub. L. 118–159, § 817(1), added par. (6). Subsec. (f)(1). Pub. L. 118–159, § 817(2)(A), inserted at end ‘‘A follow-on production award may be provided for in a transaction entered into under this section for a prototype project, awarded with respect to such a transaction as one or more separate awards, or a com- bination thereof.’’ Subsec. (f)(2). Pub. L. 118–159, § 817(2)(B), inserted ‘‘, one or more separate awards of follow-on production contracts or transactions with respect to a transaction described in such paragraph, or a combination thereof,’’ after ‘‘paragraph (1)’’ in introductory provisions. Subsec. (i)(2). Pub. L. 118–159, § 818(a)(1), inserted sub- par. (A) designation before ‘‘In carrying out’’, redesig- nated former subpars. (A) and (B) as cls. (i) and (ii), re- spectively, of subpar. (A), struck out ‘‘except for projects carried out for the purpose of repairing a facil- ity,’’ before ‘‘not more than two prototype projects’’ in cl. (i) of subpar. (A) as redesignated, and added subpar. (B). Subsec. (i)(4)(A). Pub. L. 118–159, § 818(a)(2), sub- stituted ‘‘September 30, 2030’’ for ‘‘September 30, 2025’’. 2023—Subsec. (a)(1). Pub. L. 118–31, § 913(a)(3)(A)(i), in- serted ‘‘the Director of the Defense Innovation Unit,’’ after ‘‘Defense Advanced Research Projects Agency,’’. Subsec. (a)(2)(A). Pub. L. 118–31, § 913(a)(3)(A)(ii), in- serted ‘‘, the Defense Innovation Unit,’’ after ‘‘Defense Advanced Research Projects Agency’’ in introductory provisions. Subsec. (a)(2)(C)(i)(I). Pub. L. 118–31, § 821(1), inserted ‘‘were met for the prior transaction for the prototype project that provided for the award of the follow-on production contract or transaction, and the require- ments of subsection (f)’’ after ‘‘subsection (d)’’. Subsec. (a)(3). Pub. L. 118–31, § 913(a)(3)(A)(iii), in- serted ‘‘, Defense Innovation Unit,’’ after ‘‘Defense Ad- vanced Research Projects Agency’’. Subsec. (d)(3). Pub. L. 118–31, § 821(2), added par. (3). Subsec. (e)(1)(C) to (F). Pub. L. 118–31, § 913(a)(3)(B), added subpar. (C) and redesignated former subpars. (C) to (E) as (D) to (F), respectively. Subsec. (i)(2)(A). Pub. L. 118–31, § 822(a)(1)(A), inserted ‘‘except for projects carried out for the purpose of re- pairing a facility,’’ before ‘‘not more’’. Subsec. (i)(2)(B). Pub. L. 118–31, § 822(a)(1)(B), sub- stituted ‘‘$300,000,000’’ for ‘‘$200,000,000’’. Subsec. (i)(3), (4). Pub. L. 118–31, § 822(a)(2), (3), added par. (3) and redesignated former par. (3) as (4). 2022—Subsec. (a)(1). Pub. L. 117–263, § 843(1), sub- stituted ‘‘personnel of the Department of Defense or improving’’ for ‘‘military personnel and the sup- porting’’. Subsec. (a)(2). Pub. L. 117–263, § 842(1)(A), struck out ‘‘, and any follow-on production contract or trans- action that is awarded pursuant to subsection (f),’’ after ‘‘a prototype project’’ in two places. Subsec. (a)(2)(C). Pub. L. 117–263, § 842(1)(B)–(D), added subpar. (C). Subsec. (e)(1) to (4). Pub. L. 117–263, § 842(2), added pars. (1) and (3) and redesignated former pars. (1) and (2) as (2) and (4), respectively. Subsec. (e)(5). Pub. L. 117–263, § 843(2), added par. (5). Subsec. (f)(2). Pub. L. 117–263, § 842(3), substituted ‘‘of chapter 221 of this title and even if explicit notification was not listed within the request for proposal for the transaction’’ for ‘‘of section 2304 of this title,’’. Subsec. (i). Pub. L. 117–263, § 843(3), added subsec. (i). 2021—Pub. L. 116–283, § 1841(b)(1), as amended by Pub. L. 117–81, § 1701(u)(2)(B), renumbered section 2371b of this title as this section. Subsec. (a)(1). Pub. L. 116–283, § 1841(b)(2)(C), as amended by Pub. L. 117–81, § 1701(u)(2)(F)(i)(IV), sub- stituted ‘‘section 4021’’ for ‘‘section 2371’’. Subsec. (b)(1). Pub. L. 117–81, § 821(b), substituted ‘‘Subsection (e)(2)’’ for ‘‘Subsections (e)(1)(B) and (e)(2)’’. Pub. L. 116–283, § 1841(b)(2)(C), as amended by Pub. L. 117–81, § 1701(u)(2)(F)(i)(IV), substituted ‘‘section 4021’’ for ‘‘section 2371’’. Subsec. (c)(3)(A). Pub. L. 116–283, § 1841(b)(2)(C), as amended by Pub. L. 117–81, § 1701(u)(2)(F)(i)(IV), sub- stituted ‘‘section 4021’’ for ‘‘section 2371’’. Subsec. (e)(1). Pub. L. 116–283, § 1883(b)(2), substituted ‘‘section 3014’’ for ‘‘section 2302(9)’’. Subsec. (f)(2). Pub. L. 116–283, § 1883(b)(2), which di- rected that each reference in the text of title 10 to a section that was redesignated by title XVIII of Pub. L. 116–283, as such section was in effect before the redesig- nation, be amended by striking such reference and in- serting a reference to the appropriate redesignated sec- tion, was not executed with respect to ‘‘section 2304’’, which was redesignated as multiple sections. 2019—Subsec. (d)(1)(C). Pub. L. 116–92 substituted ‘‘sources other than’’ for ‘‘sources other than other than’’. 2018—Subsec. (a)(2)(A). Pub. L. 115–232, § 211(1)(A), sub- stituted ‘‘for a prototype project, and any follow-on production contract or transaction that is awarded pur- suant to subsection (f),’’ for ‘‘(for a prototype project)’’ in introductory provisions. Subsec. (a)(2)(B). Pub. L. 115–232, § 211(1)(B)(i), sub- stituted ‘‘for a prototype project, and any follow-on production contract or transaction that is awarded pur- suant to subsection (f),’’ for ‘‘(for a prototype project)’’ in introductory provisions. Subsec. (a)(2)(B)(i). Pub. L. 115–232, § 211(1)(B)(ii), sub- stituted ‘‘Under Secretary of Defense for Research and Engineering or the Under Secretary of Defense for Ac- quisition and Sustainment’’ for ‘‘Under Secretary of Defense for Acquisition, Technology, and Logistics’’ in introductory provisions. Page 2628 TITLE 10—ARMED FORCES § 4023 Subsec. (a)(3). Pub. L. 115–232, § 211(1)(C), which di- rected substitution of ‘‘Under Secretaries of Defense’’ for ‘‘Under Secretary of Defense for Acquisition, Tech- nology, and Logistics’’ in par. (3) of subsec. (a)(2), was executed by making the substitution in par. (3) of sub- sec. (a), to reflect the probable intent of Congress. Subsec. (b)(2). Pub. L. 115–232, § 211(2), inserted ‘‘the prototype’’ after ‘‘carry out’’. Subsec. (f)(3) to (5). Pub. L. 115–232, § 211(3), added pars. (3) and (4) and redesignated former par. (3) as (5). 2017—Subsec. (a)(2)(A). Pub. L. 115–91, § 864(a)(1), (2), in introductory provisions, substituted ‘‘for a trans- action (for a prototype project)’’ for ‘‘for a prototype project’’, ‘‘$100,000,000’’ for ‘‘$50,000,000’’, and ‘‘$500,000,000’’ for ‘‘$250,000,000’’. Subsec. (a)(2)(B). Pub. L. 115–91, § 864(a)(1), (3), in in- troductory provisions, substituted ‘‘for a transaction (for a prototype project)’’ for ‘‘for a prototype project’’ and ‘‘$500,000,000’’ for ‘‘$250,000,000’’. Subsec. (d)(1)(A). Pub. L. 115–91, § 216, inserted ‘‘or nonprofit research institution’’ after ‘‘defense con- tractor’’. Subsec. (d)(1)(B). Pub. L. 115–91, § 864(b), inserted ‘‘(in- cluding small businesses participating in a program de- scribed under section 9 of the Small Business Act (15 U.S.C. 638))’’ after ‘‘small businesses’’. Subsec. (d)(1)(C). Pub. L. 115–91, § 864(c), substituted ‘‘provided by sources other than’’ for ‘‘provided by par- ties to the transaction’’. Subsec. (f)(1). Pub. L. 115–91, § 864(d), inserted at end ‘‘A transaction includes all individual prototype sub- projects awarded under the transaction to a consortium of United States industry and academic institutions.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2024 AMENDMENT Pub. L. 118–159, div. A, title VIII, § 818(b), Dec. 23, 2024, 138 Stat. 1982, provided that: ‘‘This section [amending this section] and the amendments made by this section shall apply with respect to a transaction for a proto- type project under section 4022(i) of title 10, United States Code, entered into on or after the date of the en- actment of this section [Dec. 23, 2024].’’ EFFECTIVE DATE OF 2023 AMENDMENT; IMPLEMENTATION Pub. L. 118–31, div. A, title VIII, § 822(b), Dec. 22, 2023, 137 Stat. 327, provided that: ‘‘The amendments made by this section [amending this section] shall apply with respect to transactions entered into on or after the date of the enactment of this Act [Dec. 22, 2023].’’ Amendment by section 913(a)(3) of Pub. L. 118–31 ef- fective 180 days after Dec. 22, 2023, with additional im- plementation requirements, see section 913(b)(1), (2) of Pub. L. 118–31, set out as notes under section 1766 of this title. EFFECTIVE DATE OF 2021 AMENDMENT Amendment by section 1701(u)(2)(B), (F)(i)(IV) of Pub. L. 117–81 applicable as if included 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 note below. 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. LIMITATION ON MISSILE DEFENSE AGENCY PRODUCTION OF SATELLITES AND GROUND SYSTEMS ASSOCIATED WITH OPERATION OF SUCH SATELLITES Pub. L. 117–81, div. A, title XVI, § 1662(a), Dec. 27, 2021, 135 Stat. 2103, which provided that the Director of the Missile Defense Agency could not authorize or obligate funding for a program of record for the production of satellites or ground systems associated with the oper- ation of such satellites and could authorize, with the concurrence of the Space Acquisition Council, the pro- duction of one or more prototype satellites, consistent with the requirements of the Missile Defense Agency, was repealed by Pub. L. 118–159, div. A, title XVI, § 1649(b)(2), Dec. 23, 2024, 138 Stat. 2199. See section 5537 of this title. RELAXATION OF DEPARTMENT OF DEFENSE OTHER TRANSACTION AUTHORITY REQUIREMENTS RELATED TO THE NATIONAL EMERGENCY FOR THE CORONAVIRUS DISEASE 2019 Pub. L. 116–136, div. B, title III, § 13006, Mar. 27, 2020, 134 Stat. 522, provided that: ‘‘(a) Notwithstanding paragraph (3) of section 2371b(a) of title 10, United States Code [now 10 U.S.C. 4022(a)], the authority of a senior procurement executive or di- rector of the Defense Advanced Research Projects Agency or Missile Defense Agency under paragraph (2)(A) of such section [probably should be ‘‘sub- section’’], and the authority of the Under Secretaries of Defense under paragraph (2)(B) of such section [prob- ably should be ‘‘subsection’’], for any transaction re- lated to the national emergency for the Coronavirus Disease 2019 (COVID–19) may be delegated to such offi- cials in the Department of Defense as the Secretary of Defense shall specify for purposes of this section. ‘‘(b)(1) Notwithstanding clause (ii) of section 2371b(a)(2)(B) of title 10, United States Code [now 10 U.S.C. 4022(a)(2)(B)], no advance notice to Congress is required under that clause for transitions described in that section that are related to the national emergency for the Coronavirus Disease 2019 (COVID–19). ‘‘(2) In the event a transaction covered by paragraph (1) is carried out, the Under Secretary of Defense for Research and Engineering or the Under Secretary of Defense for Acquisition and Sustainment, as applica- ble, shall submit to the congressional defense commit- tees a notice on the carrying out of such transaction as soon as is practicable after the commencement of the carrying out of such transaction. ‘‘(3) In this subsection, the term ‘congressional de- fense committees’ has the meaning given such term in section 101(a)(16) of title 10, United States Code.’’ REPEAL OF OBSOLETE AUTHORITY; TRANSITION PROVISION Pub. L. 114–92, div. A, title VIII, § 815(c), Nov. 25, 2015, 129 Stat. 896, provided that: ‘‘Section 845 of the Na- tional Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; [former] 10 U.S.C. 2371 note) is hereby repealed. Transactions entered into under the authority of such section 845 shall remain in force and effect and shall be modified as appropriate to reflect the amendments made by this section [enacting this section, amending former section 2302 of this title, and amending provisions set out as a note under section 4001 of this title].’’ UPDATED GUIDANCE Pub. L. 114–92, div. A, title VIII, § 815(e), Nov. 25, 2015, 129 Stat. 896, provided that: ‘‘Not later than 180 days after the date of the enactment of this Act [Nov. 25, 2015], the Secretary of Defense shall issue updated guid- ance to implement the amendments made by this sec- tion [enacting this section, amending former section 2302 of this title, amending provisions set out as a note under section 4001 of this title, and repealing provisions formerly set out as a note under section 2371 of this title].’’ § 4023. Procurement for experimental purposes (a) AUTHORITY.—The Secretary of Defense and the Secretaries of the military departments may each buy ordnance, signal, chemical activity, transportation, energy, medical, space-flight, telecommunications, and aeronautical supplies, including parts and accessories, and designs thereof, that the Secretary of Defense or the Secretary concerned considers necessary for ex-