Title 10Armed ForcesRelease 119-73

§3323 Cost-plus contracting prohibited for military construction and military family housing projects

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART V— - ACQUISITION › Subpart Subpart C— - Contracting Methods and Contract Types › Chapter CHAPTER 242— - SPECIFIC TYPES OF CONTRACTS › § 3323

Last updated Apr 6, 2026|Official source

Summary

The United States may not use cost-plus contracts for military construction or family housing. It also adds to section 3322(a) and remains in force during war or a President-declared national emergency under section 201 (50 U.S.C. 1621).

Full Legal Text

Title 10, §3323

Armed Forces — Source: USLM XML via OLRC

(a)A contract entered into by the United States in connection with a military construction project or a military family housing project may not use any form of cost-plus contracting.
(b)The prohibition specified in subsection (a)—
(1)is in addition to the prohibition specified in section 3322(a) of this title on the use of the cost-plus-a-percentage-of-cost system of contracting; and
(2)applies notwithstanding a declaration of war or the declaration by the President of a national emergency under section 201 of the National Emergencies Act (50 U.S.C. 1621) that includes the use of the armed forces.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification The text of subsec. (c) of section 2306 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1817(g), was based on Pub. L. 112–81, div. B, title XXVIII, § 2801(a), Dec. 31, 2011, 125 Stat. 1684.

Amendments

2023—Subsec. (b)(2). Pub. L. 118–31 struck out period after “notwithstanding”. 2021—Subsec. (a). Pub. L. 116–283, § 1817(g)(1), (2), redesignated subsec. (c) of section 2306 of this title as subsec. (a) of this section and inserted heading. Former second sentence of subsec. (a) designated subsec. (b). Subsec. (b). Pub. L. 116–283, § 1817(g)(1), (3), designated second sentence of subsec. (a) as subsec. (b), inserted heading, and substituted “The prohibition specified in subsection (a)— “(1) is in addition to the prohibition specified in section 3322(a) of this title on the use of the cost-plus-a-percentage-of-cost system of contracting; and “(2) applies notwithstanding. a declaration” for “This prohibition is in addition to the prohibition specified in subsection (a) on the use of the cost-plus-a-percentage-of-cost system of contracting and applies notwithstanding a declaration”.

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.

Reference

Citations & Metadata

Citation

10 U.S.C. § 3323

Title 10Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73