2021 US Code
Title 10 - Armed Forces
Subtitle A - General Military Law
Part V - Acquisition
Subpart C - Contracting Methods and Contract Types
Chapter 244 - Undefinitized Contractual Actions
Sec. 3374 - Undefinitized contractual actions: allowable profit
| 10 U.S.C. § 3374 (2021) |
| §3374. Undefinitized contractual actions: allowable profit |
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(a) Allowed Profit to Reflect Certain Reduced 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 completed reflects— (1) the possible reduced cost risk of the contractor 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 performance 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 qualifying proposal, the head of the agency concerned shall ensure that the profit allowed on the contract accurately reflects the cost risk of the contractor as such risk existed on the date the contractor submitted the qualifying proposal. |
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(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 subsections. AMENDMENTS2021—Pub. L. 116–283, §1819(e)(1)(A), transferred subsec. (f) of section 2326 of this title to this section and struck out subsec. (f) designation and heading "Allowable Profit" at beginning. Subsec. (a). Pub. L. 116–283, §1819(e)(1)(B), (2), redesignated par. (1) of former section 2326(f) of this title as subsec. (a) of this section, inserted heading, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively. Subsec. (b). Pub. L. 116–283, §1819(e)(1)(B), (3), redesignated 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 implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title. |
| United States Code, 2018 Edition, Supplement 3, Title 10 - ARMED FORCES |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 10 - ARMED FORCES Subtitle A - General Military Law PART V - ACQUISITION Subpart C - Contracting Methods and Contract Types CHAPTER 244 - UNDEFINITIZED CONTRACTUAL ACTIONS Sec. 3374 - Undefinitized contractual actions: allowable profit |
| section 3374 |
| 2021 |
| January 3, 2022 |
| Yes |
| standard |
| 100 Stat. 1783-82, 3341-82, 3921 101 Stat. 273 130 Stat. 2268 131 Stat. 1462 134 Stat. 4189 |
| Public Law 99-500, Public Law 99-591, Public Law 99-661, Public Law 100-26, Public Law 114-328, Public Law 115-91, Public Law 116-283 |
