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Title 10, Armed ForcesRelease 119-110

§3741 Definitions

Title 10 › Subtitle A — General Military Law › PART V — ACQUISITION › Subpart D — General Contracting Provisions › CHAPTER 273 — ALLOWABLE COSTS › SUBCHAPTER I — GENERAL › § 3741

Last updated Sep 22, 2026|Official source

Summary

Sets simple meanings for key words used in this part. Compensation means the total wages, salary, bonuses, and deferred pay for a given year, whether paid or not, as shown in an employer’s cost accounting records. Covered contract means a contract over $500,000 made by an agency head, but not a plain fixed‑price contract without cost incentives or a firm fixed‑price buy of commercial products or services. Fiscal year means the contractor’s accounting year. Head of the agency does not include the Secretary of a military department. Agency means the Department of Defense, the Coast Guard, and NASA.

Full Legal Text

Title 10, §3741

Armed Forces, Source: USLM XML via OLRC

In this subchapter:
(1)Compensation.—
The term “compensation”, for a year, means the total amount of wages, salary, bonuses and deferred compensation for the year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the year.
(2)Covered contract.—
The term “covered contract” means a contract for an amount in excess of $500,000 that is entered into by the head of an agency, except that such term does not include a fixed-price contract without cost incentives or any firm fixed-price contract for the purchase of commercial products or commercial services.
(3)Fiscal year.—
The term “fiscal year” means a fiscal year established by a contractor for accounting purposes.
(4)Head of the agency.—
The term “head of the agency” or “agency head” does not include the Secretary of a military department.
(5)Agency.—
The term “agency” means the Department of Defense, the Coast Guard, and the National Aeronautics and Space Administration.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification The text of pars. (1)(A), (2)–(4), and (6) of subsec. (l) of section 2324 of this title, which were transferred to this section and amended by Pub. L. 116–283, § 1832(b)(1)–(3), was based on Pub. L. 103–355, title II, § 2101(d), Oct. 13, 1994, 108 Stat. 3308; Pub. L. 105–85, div. A, title VIII, § 808(a)(2), Nov. 18, 1997, 111 Stat. 1836; Pub. L. 115–232, div. A, title VIII, § 836(c)(9), Aug. 13, 2018, 132 Stat. 1866.

Prior Provisions

A prior section 3741 was renumbered section 7271 of this title.

Amendments

2021—Pub. L. 116–283, § 1832(b)(1)–(3), redesignated pars. (4), (1)(A), (6), (2), and (3) of section 2324(l) of this title as pars. (1) to (5), respectively, of this section and inserted headings.

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. § 3741

Title 10, Armed Forces

Last Updated

Sep 22, 2026

Release point: 119-110