Title 10, Armed ForcesRelease 119-110

§4004 Contract Authority for Development and Demonstration of Initial or Additional Prototype Units

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

Last updated Sep 22, 2026|Official source

Summary

Allows a competitively won contract to include an extra item or option to develop, test, or make initial prototypes, or to deliver initial or extra items if those items come from work done under the contract. If used, the delivery option must be for the smallest number of items needed so a later competitive follow-on contract can be awarded on time. Any such item or option may not run longer than 2 years and may not cost more than $100,000,000 (in fiscal year 2017 constant dollars). Only the Secretary of Defense and the Secretaries of the Army, Navy, and Air Force may use this. The Secretary of Defense must set up a process to gather and study data on how this authority is used and how it affects performance, cost, and getting capabilities delivered.

Full Legal Text

Title 10, §4004

Armed Forces, Source: USLM XML via OLRC

(a)Authority.—
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)
(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)Limitations.—
(1)Minimal amount.—
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)Term.—
A contract line item or contract option described in subsection (a) shall be for a term of not more than 2 years.
(3)Dollar value of work.—
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)Applicability.—
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)Procedures.—
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.

Legislative History

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.

Reference

Citations & Metadata

Citation

10 U.S.C. § 4004

Title 10, Armed Forces

Last Updated

Sep 22, 2026

Release point: 119-110