§3321 — Title 10 Armed Forces | U.S. Code

Summary

Agency heads may choose any kind of contract they think is best for the United States when they award contracts under chapter 137 legacy provisions using procedures other than sealed bids, but they must follow the limits in section 3322(a), other rules in this chapter, and other laws. Each such contract must include a promise from the contractor that they did not hire anyone to get the work for a commission, percentage, brokerage, or contingent fee, except a real employee or a regular commercial selling agency. If the contractor breaks that promise, the United States can cancel the contract without owing money or reduce payments by the fee amount. That promise rule does not apply to contracts at or below the simplified acquisition threshold or to contracts for commercial products or commercial services.

Title 10, §3321

Armed Forces — Source: USLM XML via OLRC

(a)Subject to the limitation in section 3322(a) of this title, the other provisions of this chapter, and other applicable provisions of law, the head of an agency, in awarding contracts under chapter 137 legacy provisions after using procedures other than sealed-bid procedures, may enter into any kind of contract that he considers will promote the best interests of the United States.

(b)(1)Each contract awarded under chapter 137 legacy provisions after using procedures other than sealed-bid procedures shall contain a warranty, determined to be suitable by the head of the agency, that the contractor has employed or retained no person or selling agency to solicit or obtain the contract under an understanding or agreement for a commission, percentage, brokerage, or contingent fee, except a bona fide employee or established commercial or selling agency maintained by the contractor to obtain business.

(2)If a contractor breaks such a warranty the United States—

(A)may annul the contract without liability; or

(B)may deduct the commission, percentage, brokerage, or contingent fee from the contract price or consideration.

(3)This subsection does not apply—

(A)to a contract that is for an amount not greater than the simplified acquisition threshold; or

(B)to a contract for the acquisition of commercial products or commercial services.

Notes & Related Subsidiaries

Editorial Notes

Codification The text of subsec. (a) of section 2306 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1817(b), (d)(1), was based on act Aug. 10, 1956, ch. 1041, 70A Stat. 130; Pub. L. 87–653, § 1(d), Sept. 10, 1962, 76 Stat. 528; Pub. L. 98–369, div. B, title VII, § 2724(a),

July 18, 1984, 98 Stat. 1192; Pub. L. 99–145, title XIII, § 1303(a)(15), Nov. 8, 1985, 99 Stat. 739. The text of subsec. (b) of section 2306 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1817(b), (d)(2), was based on act Aug. 10, 1956, ch. 1041, 70A Stat. 130; Pub. L. 98–369, div. B, title VII, § 2724(b),

July 18, 1984, 98 Stat. 1193; Pub. L. 103–355, title IV, § 4102(b), Oct. 13, 1994, 108 Stat. 3340; Pub. L. 115–232, div. A, title VIII, § 836(c)(4), Aug. 13, 2018, 132 Stat. 1865.

Amendments

2021—Subsec. (a). Pub. L. 116–283, § 1817(b), (d)(1), transferred subsec. (a) of section 2306 of this title to this section, inserted heading before second sentence, and substituted “section 3322(a) of this title” for “the preceding sentence”, “provisions of this chapter” for “provisions of this section”, and “under chapter 137 legacy provisions” for “under this chapter”. Former first sentence of subsec. (a) designated section 3322(a) of this title. Subsec. (b). Pub. L. 116–283, § 1817(b), (d)(2), transferred subsec. (b) of section 2306 of this title to this section, inserted heading, and designated first, second, and third sentences as pars. (1) to (3), respectively. Subsec. (b)(1). Pub. L. 116–283, § 1817(d)(2)(A)–(C), inserted heading and substituted “under chapter 137 legacy provisions” for “under this chapter” and “maintained by the contractor” for “maintained by him”. Subsec. (b)(2). Pub. L. 116–283, § 1817(d)(2)(E), inserted heading, inserted dash after “the United States” and subpar. (A) designation before “may annul”, substituted “liability; or” for “liability or”, and inserted subpar. (B) designation before “may deduct”. Subsec. (b)(3). Pub. L. 116–283, § 1817(d)(2)(F), inserted heading, inserted dash after “does not apply” and subpar. (A) designation before “to a contract that is”, substituted “threshold; or” for “threshold or”, and inserted subpar. (B) designation before “to a contract for the acquisition”.

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.

§3321 Contracts awarded using procedures other than sealed-bid procedures

Summary

Title 10, §3321

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata