10 U.S.C. § 4651 | Expenditure of appropriations: limitation

(a)

Money appropriated to the Department of Defense may not be spent under a contract other than a contract for personal services unless that contract provides that—

(1)

the United States may, by written notice to the contractor, terminate the right of the contractor to proceed under the contract if the Secretary concerned or his designee finds, after notice and hearing, that the contractor, or his agent or other representative, offered or gave any gratuity, such as entertainment or a gift, to an officer, official, or employee of the United States to obtain a contract or favorable treatment in the awarding, amending, or making of determinations concerning the performance, of a contract; and

(2)

if a contract is terminated under clause (1), the United States has the same remedies against the contractor that it would have had if the contractor had breached the contract and, in addition to other damages, is entitled to exemplary damages in an amount at least three, but not more than 10, as determined by the Secretary or his designee, times the cost incurred by the contractor in giving gratuities to the officer, official, or employee concerned.

The existence of facts upon which the Secretary makes findings under clause (1) may be reviewed by any competent court.

(b)

section 134 of title 41 This section does not apply to a contract that is for an amount not greater than the simplified acquisition threshold (as defined in ).

Pub. L. 87–651, title II, § 207(a)Sept. 7, 196276 Stat. 520 Pub. L. 104–106, div. A, title VIII, § 801Feb. 10, 1996110 Stat. 389 Pub. L. 111–350, § 5(b)(5)Jan. 4, 2011124 Stat. 3842 Pub. L. 116–283, div. A, title XVIII, § 1862(b)Jan. 1, 2021134 Stat. 4277(Added , , , § 2207; amended , , ; , , ; renumbered § 4651, , , .)

Historical and Revision Notes
Revised section	Source (U.S. Code)	Source (Statutes at Large)
2207	5:174d.	June 30, 1954, ch. 432, § 719, 68 Stat. 353.

June 30, 1954The following substitutions are made: “spent” for “expended”; “United States” for “Government”; “if a contract is terminated under clause (1)” for “that in the event any such contract is so terminated”; and “has . . . that it would have had if” for “shall be entitled . . . to pursue . . . as it could pursue in the event of”. The word “official” is inserted for clarity. The words “entered into after ” are omitted as executed.

Editorial Notes

Prior Provisions

Aug. 10, 1956, ch. 1041 70A Stat. 260 Pub. L. 99–145, title XIII, § 1301Nov. 8, 198599 Stat. 736 Pub. L. 112–239, div. A, title V, § 552(b)Jan. 2, 2013126 Stat. 1741A prior section 4651, , ; (b(3)(C), , , related to issuance of arms, tentage, and equipment necessary for proper military training to institutions not maintaining units of the Reserve Officers’ Training Corps, prior to repeal by , , .

Amendments

Pub. L. 116–283 section 2207 of this title2021— renumbered as this section.

Pub. L. 111–350 section 134 of title 41 41 U.S.C. 403(11)2011—Subsec. (b). substituted “” for “section 4(11) of the Office of Federal Procurement Policy Act ()”.

Pub. L. 104–1061996— designated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 116–283Jan. 1, 2022section 1801(d) of Pub. L. 116–283 section 3001 of this titleAmendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as a note preceding .