Title 41, Public ContractsRelease 119-110

§109 Major System

Title 41 › Subtitle I — Federal Procurement Policy › CHAPTER 1 — DEFINITIONS › SUBCHAPTER I — SUBTITLE DEFINITIONS › § 109

Last updated Sep 22, 2026|Official source

Summary

Says what counts as a "major system" and when a project must be treated that way. A major system is a set of parts that work together to do a mission. Those parts can be hardware, equipment, software, or a mix. It does not include building or fixing real estate. A system is a major system if one of three things is true. If the Department of Defense is in charge and spending to create and test it is expected to exceed $75,000,000 (based on fiscal year 1980 constant dollars) or buying it will cost more than $300,000,000 (based on fiscal year 1980 constant dollars). If a civilian agency is in charge and total costs are more than the greater of $750,000 (based on fiscal year 1980 constant dollars) or the agency’s dollar limit set under OMB Circular A–109. Or if the agency head declares it a major system.

Full Legal Text

Title 41, §109

Public Contracts, Source: USLM XML via OLRC

(a)In General.—
In this subtitle, the term “major system” means a combination of elements that will function together to produce the capabilities required to fulfill a mission need. These elements may include hardware, equipment, software, or a combination of hardware, equipment, and software, but do not include construction or other improvements to real property.
(b)System Deemed To Be Major System.—
A system is deemed to be a major system if—
(1)the Department of Defense is responsible for the system and the total expenditures for research, development, testing, and evaluation for the system are estimated to exceed $75,000,000 (based on fiscal year 1980 constant dollars) or the eventual total expenditure for procurement exceeds $300,000,000 (based on fiscal year 1980 constant dollars);
(2)a civilian agency is responsible for the system and total expenditures for the system are estimated to exceed the greater of $750,000 (based on fiscal year 1980 constant dollars) or the dollar threshold for a major system established by the agency pursuant to Office of Management and Budget (OMB) Circular A–109, entitled “Major Systems Acquisitions”; or
(3)the head of the agency responsible for the system designates the system a major system.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 10941:259(c)(7).June 30, 1949, ch. 288, title III, § 309(c)(7), as added Pub. L. 98–369, title VII, § 2711(a)(3), July 18, 1984, 98 Stat. 1180; Pub. L. 98–577, title V, § 504(a)(4), Oct. 30, 1984, 98 Stat. 3086; Pub. L. 103–355, title I, § 1551, Oct. 13, 1994, 108 Stat. 3299. 41:403(9).Pub. L. 93–400, § 4(9), formerly § 4(10), as added Pub. L. 98–577, title I, § 102(3), Oct. 30, 1984, 98 Stat. 3067; redesignated as § 4(9), Pub. L. 100–679, § 3(c), Nov. 17, 1988, 102 Stat. 4056; Pub. L. 103–355, title VIII, § 8001(b)(1)–(3), Oct. 13, 1994, 108 Stat. 3386.

Reference

Citations & Metadata

Citation

41 U.S.C. § 109

Title 41, Public Contracts

Last Updated

Sep 22, 2026

Release point: 119-110