§4004 — Title 10 Armed Forces | U.S. Code

§4004 Contract authority for development and demonstration of initial or additional prototype units

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART V— - ACQUISITION › Subpart Subpart E— - Research and Engineering › Chapter CHAPTER 301— - RESEARCH AND ENGINEERING GENERALLY › Subchapter SUBCHAPTER I— - GENERAL › § 4004

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Defense and the Secretaries of the Army, Navy, and Air Force can add a contract item or option to a competitively awarded contract so a contractor can develop and demonstrate a new technology, begin initial production, or deliver initial or extra units that come from work done under that contract. Those contract items must only buy the smallest number of units needed so a follow-on development or production contract can be competitively solicited and awarded in a timely way. Each such item or option can last no more than 2 years and the work paid under it can’t exceed $100,000,000 in fiscal year 2017 constant dollars. The Secretary of Defense must set up procedures to collect and study information on how this authority is used and how it affects performance, cost, and getting capabilities delivered.

Title 10, §4004

Armed Forces — Source: USLM XML via OLRC

(a)A contract initially awarded from the competitive selection of a proposal resulting from a general solicitation referred to in section 3012(2) of this title may contain a contract line item or contract option for—

(1)the development and demonstration or initial production of technology developed under the contract; or

(2)the delivery of initial or additional items if the item or a prototype thereof is created as the result of work performed under the contract.

(b)(1)A contract line item or contract option described in subsection (a)(2) shall require the delivery of the minimal amount of initial or additional items to allow for the timely competitive solicitation and award of a follow-on development or production contract for those items.

(2)A contract line item or contract option described in subsection (a) shall be for a term of not more than 2 years.

(3)The dollar value of the work to be performed pursuant to a contract line item or contract option described in subsection (a) may not exceed $100,000,000, in fiscal year 2017 constant dollars.

(4)The authority provided in subsection (a) applies only to the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force.

(c)The Secretary of Defense shall establish procedures to collect and analyze information on the use and benefits of the authority under this section and related impacts on performance, affordability, and capability delivery.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2021—Pub. L. 116–283, § 1841(b)(1), as amended by Pub. L. 117–81, § 1701(u)(2)(B), renumbered section 2302e of this title as this section. Pub. L. 116–283, § 1818(c), which directed the renumbering of section 2302e of this title as section 3345 instead of this section and the substitution of “section 3012(2)” for “section 2302(2)(B)” in subsec. (a), was repealed by Pub. L. 117–81, § 1701(v)(1)(A), effective as if included therein, so that such renumbering and substitution were no longer directed. Pub. L. 116–283, § 831(a)(1), substituted “development and demonstration” for “advanced development” in section catchline. Subsec. (a). Pub. L. 116–283, § 1841(b)(2)(D), as added by Pub. L. 117–81, § 1701(u)(2)(F)(i)(V), substituted “section 3012(2)” for “section 2302(2)(B)” in introductory provisions. Subsec. (a)(1). Pub. L. 116–283, § 831(a)(2), substituted “development and demonstration” for “provision of advanced component development, prototype,”. Subsec. (c). Pub. L. 116–283, § 831(a)(3), added subsec. (c).

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 section 1818(c) of 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.