2021 US Code
Title 41 - Public Contracts
Subtitle I - Federal Procurement Policy
Division C - Procurement
Chapter 47 - Miscellaneous
Sec. 4710 - Limitations on tiering of subcontractors
| 41 U.S.C. § 4710 (2021) | ||||||
| §4710. Limitations on tiering of subcontractors | ||||||
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(a) Definition.—In this section, the term "executive agency" has the same meaning given in section 133 of this title. (b) Regulations.—For executive agencies other than the Department of Defense, the Federal Acquisition Regulation shall— (1) require contractors to minimize the excessive use of subcontractors, or of tiers of subcontractors, that add no or negligible value; and (2) ensure that neither a contractor nor a subcontractor receives indirect costs or profit on work performed by a lower-tier subcontractor to which the higher-tier contractor or subcontractor adds no or negligible value (but not to limit charges for indirect costs and profit based on the direct costs of managing lower-tier subcontracts). (c) Covered Contracts.—This section applies to any cost-reimbursement type contract or task or delivery order in an amount greater than the simplified acquisition threshold (as defined by section 134 of this title). (d) Rule of Construction.—Nothing in this section shall be construed as limiting the ability of the Department of Defense to implement more restrictive limitations on the tiering of subcontractors. (e) Applicability.—The Department of Defense shall continue to be subject to guidance on limitations on tiering of subcontractors issued by the Department of Defense pursuant to section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364, 10 U.S.C. 2324 note).1 |
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(Pub. L. 111–350, §3, Jan. 4, 2011, 124 Stat. 3800.) |
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In subsection (b), the words "Not later than one year after the date of the enactment of this Act" are omitted because of section 6(f) of the bill. The word "shall" is substituted for the words "shall be amended" to reflect the permanence of the provision. EDITORIAL NOTES REFERENCES IN TEXT Section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007, referred to in subsec. (e), is section 852 of Pub. L. 109–364, which was formerly set out as a note under section 2324 of Title 10, Armed Forces, prior to transfer and is now set out as a note preceding section 3761 of Title 10. |
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1 See References in Text note below. |
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| United States Code, 2018 Edition, Supplement 3, Title 41 - PUBLIC CONTRACTS | ||||||
| Bills and Statutes | ||||||
| United States Code | ||||||
| Y 1.2/5: | ||||||
| Title 41 - PUBLIC CONTRACTS Subtitle I - Federal Procurement Policy Division C - Procurement CHAPTER 47 - MISCELLANEOUS Sec. 4710 - Limitations on tiering of subcontractors |
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| section 4710 | ||||||
| 2021 | ||||||
| January 3, 2022 | ||||||
| Yes | ||||||
| standard | ||||||
| 122 Stat. 4551 124 Stat. 3800 |
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| Public Law 109-364, Public Law 110-417, Public Law 111-350 |
