Title 10 — Armed ForcesRelease 119-73not60
§3323 Cost-plus Contracting Prohibited for Military Construction and Military Family Housing Projects
Title 10 › Subtitle Subtitle A— General Military Law › Part V— ACQUISITION › Subpart C— Contracting Methods and Contract Types › Chapter 242— SPECIFIC TYPES OF CONTRACTS › § 3323
Summary
The United States cannot use any kind of cost-plus contract for military construction or military family housing projects. This rule is extra to the ban in section 3322(a) on cost-plus-a-percentage-of-cost contracts and still applies during a declared war or a presidential national emergency under the National Emergencies Act (50 U.S.C. 1621) that involves the armed forces.
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 10 — Armed Forces
Last Updated
Apr 3, 2026
Release point: 119-73not60