Title 10Armed ForcesRelease 119-73

§3901 Contracts: prohibition on competition between Department of Defense and small businesses

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART V— - ACQUISITION › Subpart Subpart D— - General Contracting Provisions › Chapter CHAPTER 287— - OTHER CONTRACTING PROGRAMS › § 3901

Last updated Apr 6, 2026|Official source

Summary

When the Secretary of Defense plans a competitive purchase that is set aside for small businesses under section 8 or 15 of the Small Business Act (15 U.S.C. 637 or 644), the Department of Defense must not compete. In other words, if the competition excludes private companies that are not small businesses, DoD cannot take part.

Full Legal Text

Title 10, §3901

Armed Forces — Source: USLM XML via OLRC

(a)In any case in which the Secretary of Defense plans to use competitive procedures for a procurement, if the procurement is to be conducted as described in subsection (b), then the Secretary shall exclude the Department of Defense from competing in the procurement.
(b)The requirement to exclude the Department of Defense under subsection (a) applies in the case of a procurement to be conducted by excluding from competition entities in the private sector other than small business concerns in furtherance of section 8 or 15 of the Small Business Act (15 U.S.C. 637 or 644).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2021—Pub. L. 116–283, § 1838(b), as amended by Pub. L. 117–81, § 1701(v)(2)(A), renumbered section 2304e of this title as this section. 2018—Subsec. (b). Pub. L. 115–232 substituted “other than” for “other than—”, struck out par. (1) designation before “small business”, and struck out par. (2) which read as follows: “entities described in subsection (a)(1) of section 2323 of this title in furtherance of the goal specified in that subsection.” 1996—Pub. L. 104–106 renumbered section 2304a of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by 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.

Effective Date

Pub. L. 103–160, div. A, title VIII, § 848(b), Nov. 30, 1993, 107 Stat. 1725, provided that: “Section 2304a of title 10, United States Code [now 10 U.S.C. 3901], as added by subsection (a), shall take effect on the date of the enactment of this Act [Nov. 30, 1993].”

Reference

Citations & Metadata

Citation

10 U.S.C. § 3901

Title 10Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73