Sec. 1834. CONTRACT FINANCING

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## SEC. 1834 CONTRACT FINANCING ###

(a)New Chapter **[**[10 U.S.C. 3801](/us/usc/t10/s3801)**]** Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232), is amended by striking chapter 277 and inserting the following: > > ## “CHAPTER 277 **CONTRACT FINANCING** > > **[**[10 U.S.C. 3801](/us/usc/t10/s3801)**]** > > > ## “SEC. 3801 Authority of agency > > **[**[10 U.S.C. 3801](/us/usc/t10/s3801)**]** > > > ## “SEC. 3802 Payment > > **[**[10 U.S.C. 3802](/us/usc/t10/s3802)**]** > > > ## “SEC. 3803 Security for advance payments > > **[**[10 U.S.C. 3803](/us/usc/t10/s3803)**]** > > > ## “SEC. 3804 Conditions for progress payments > > **[**[10 U.S.C. 3804](/us/usc/t10/s3804)**]** > > > ## “SEC. 3805 Payments for commercial products and commercial services > > **[**[10 U.S.C. 3805](/us/usc/t10/s3805)**]** > > > ## “SEC. 3806 Action in case of fraud > > **[**[10 U.S.C. 3806](/us/usc/t10/s3806)**]** > > > ## “SEC. 3807 Vesting of title in the United States” > > **[**[10 U.S.C. 3807](/us/usc/t10/s3807)**]** > . ###

(b)Transfer of Subsection

(a)of Section 2307 ####

(1)Transfer Subsection

(a)of section 2307 of title 10, United States Code, is transferred to section 3801 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking “(1)” before “The head of”; and #####

(B)by redesignating paragraph

(2)as subsection (b). ####

(2)Conforming amendments to new 3801(a) Such subsection (a), as so transferred and amended, is further amended by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively. ####

(3)Conforming amendments to new 3801(b) Subsection

(b)of such section 3801, as redesignated by paragraph (1)(B), is amended— #####

(A)by striking “

(A)For a prime ” and inserting > “ Payment Dates for Contractors That Are Small Business Concerns.— > > > #### “(1) Prime contractors > > For a prime” > ; #####

(B)by redesignating subparagraph

(B)as paragraph (2); and #####

(C)in paragraph (2), as so redesignated— ######

(i)by inserting “Subcontractors.—” before “For a prime”; and ######

(ii)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively. ###

(c)Transfer of Subsections

(b)and

(c)of Section 2307 ####

(1)Transfer Subsections

(b)and

(c)of section 2307 of title 10, United States Code, are transferred to section 3802 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsections

(a)and (d), respectively. ####

(2)Further internal redesignation amendments to new 3802 Such section 3802, as so amended, is further amended #####

(A)in subsection (a), by striking “(1)” before “Whenever possible”; #####

(B)by redesignating paragraph

(2)of subsection

(a)as subsection (b); #####

(C)by transferring paragraph

(3)of such subsection to the end of the section and redesignating such paragraph as subsection (e); #####

(D)by redesignating paragraph

(4)of subsection

(a)as subsection (c); and #####

(E)by redesignating subparagraphs (A), (B), and

(C)of subsection

(a)as paragraphs (1), (2), and (3), respectively. ####

(3)Conforming amendment to new 3802(a) Subsection

(a)of such section is further amended by striking “subsection (a)” and inserting “section 3801 of this title”. ####

(4)Conforming amendments to new 3802(b) Subsection

(b)of such section, as so redesignated, is amended— #####

(A)by inserting “Basis for performance-based payments.—” before “Performance-based payments”; and #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”. ####

(5)Conforming amendments to new 3802(c) Subsection

(c)of such section, as so redesignated, is amended— #####

(A)by striking “

(A)In order to ” and inserting > “ Contractor Accounting Systems.— > > > #### “(1) > > In order to” > ; and #####

(B)by redesignating subparagraph

(B)as paragraph (2), realigning that paragraph 2 ems to the right, and striking “this section” therein and inserting “this chapter”. ####

(6)Conforming amendment to new 3802(d) Subsection

(d)of such section, as redesignated by paragraph (1), is amended by striking “subsection (a)” and inserting “section 3801 of this title”. ####

(7)Conforming amendment to new 3802(e) Subsection

(e)of such section, as transferred and redesignated by paragraph (2)(C), is amended by inserting “Eligibility of Nontraditional Defense Contractors.—” before “The Secretary of”. ###

(d)Transfer of Subsection

(d)of Section 2307 Subsection

(d)of section 2307 of title 10, United States Code, is transferred to section 3803 of such title, as added by subsection (a), inserted after the section heading, and amended— ####

(1)by striking the subsection designation and subsection heading; and ####

(2)by striking “subsection (a)” and inserting “section 3801 of this title”. ###

(e)Transfer of Subsection

(e)of Section 2307 ####

(1)Transfer Subsection

(e)of section 2307 of title 10, United States Code, is transferred to section 3804 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation and subsection heading; and #####

(B)by redesignating paragraphs (1), (2), and

(3)as subsections (a), (b), and (c), respectively. ####

(2)Conforming amendment to new 3804(a) Subsection

(a)of such section 3804, as so transferred and redesignated, is amended by inserting “Payment Commensurate With Work.—” before “The Secretary of Defense”. ####

(3)Conforming amendments to new 3804(b) Subsection

(b)of such section 3804, as so transferred and redesignated, is amended— #####

(A)by inserting “Limitation.—” before “The Secretary”; and #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”. ####

(4)Conforming amendments to new 3804(c) Subsection

(c)of such section 3804, as so transferred and redesignated, is amended— #####

(A)by inserting “Applicability.—” before “This”; and #####

(B)by striking “subsection” and inserting “section”. ###

(f)Transfer of Subsection

(f)of Section 2307 ####

(1)Transfer Subsection

(f)of section 2307 of title 10, United States Code, is transferred to section 3805 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation and subsection heading; and #####

(B)by redesignating paragraphs (1), (2), and

(3)as subsections (a), (c), and (d), respectively. ####

(2)Further internal redesignation amendments to new 3805 Such section 3805, as so amended, is further amended by designating the second sentence of subsection

(a)as subsection (b). ####

(4)Conforming amendments to new 3805(a) Subsection

(a)of such section, as so transferred and redesignated, is amended— #####

(A)by inserting “Terms and Conditions for Payments.—” before “Payments under”; and #####

(B)by striking “subsection (a)” and inserting “section 3801 of this title”. ####

(4)Conforming amendment to new 3805(b) Subsection

(b)of such section, as designated by paragraph (2), is amended by inserting “Security for Payments.—” before “The head of the agency”. ####

(5)Conforming amendments to new 3805(c) Subsection

(c)of such section, as so transferred and redesignated, is amended— #####

(A)by inserting “Limitation on Advance Payments.—” before “Advance payments”; and #####

(B)by striking “subsection (a)” and inserting “section 3801 of this title”. ####

(6)Conforming amendments to new 3805(d) Subsection

(d)of such section, as so transferred and redesignated, is amended— #####

(A)by inserting “Nonapplication of Certain Conditions.—” before “The conditions of”; #####

(B)by striking “subsections

(d)and (e)” and inserting “sections 3803 and 3804 of this title”; and #####

(C)by striking “paragraphs

(1)and (2)” and inserting “this section”. ###

(g)Transfer of Subsection

(i)of Section 2307 ####

(1)Transfer Subsection

(i)of section 2307 of title 10, United States Code, is transferred to section 3806 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. ####

(2)Further internal redesignation amendments to new 3806 Such section 3806, as so amended, is further amended— #####

(A)by redesignating paragraphs

(1)through

(9)as subsections

(b)through (j), respectively; and #####

(B)by transferring paragraph

(10)to the beginning of such section so as to appear before subsection (b), as redesignated by subparagraph (A), and redesignating that paragraph as subsection (a). ####

(3)Conforming amendments to new 3806(a) Subsection

(a)of such section, as transferred and redesignated by paragraph (2)(B), is amended— #####

(A)by inserting “Remedy Coordination Official Defined.—” before “In this”; and #####

(B)by striking “this subsection” and inserting “this section”. ####

(4)Conforming amendment to new 3806(b) Subsection

(b)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), is amended by inserting “Recommendation to Reduce or Suspend Payments.—” before “In any case”. ####

(5)Conforming amendments to new 3806(c) Subsection

(c)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), is amended— #####

(A)by inserting “Reduction or Suspension of Payments.—” before “The head of”; and #####

(B)by striking “paragraph (1)” and inserting “subsection (b)”. ####

(6)Conforming amendments to new 3806(d) Subsection

(d)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), is amended— #####

(A)by inserting “Extent of Reduction or Suspension.—” before “The extent of”; and #####

(B)by striking “paragraph (2)” and inserting “subsection (c)”. ####

(7)Conforming amendments to new 3806(e) Subsection

(e)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), is amended— #####

(A)by inserting “Written Justification.—” before “A written”; and #####

(B)by striking “paragraph (2)” and inserting “subsection (c)”. ####

(8)Conforming amendments to new 3806(f) Subsection

(f)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), is amended— #####

(A)by inserting “Notice.—” before “The head of an agency shall”; and #####

(B)by striking “paragraph (2)” and inserting “subsection (c)”. ####

(9)Conforming amendments to new 3806(g) Subsection

(g)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), is amended— #####

(A)by inserting “Review.—” before “Not later than”; #####

(B)by striking “paragraph (2)” and inserting “subsection (c)”; and #####

(C)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively. ####

(10)Conforming amendments to new 3806(h) Subsection

(h)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), is amended— #####

(A)by inserting “Annual Report.—” before “The head of”; and #####

(B)by striking “paragraph (2)” and inserting “subsection (c)”. ####

(11)Reordering and redesignation for title 41 consistency Subsections

(i)and

(j)of such section, as transferred and redesignated by paragraphs

(1)and (2)(A), are reversed in order and are redesignated accordingly. ####

(12)Conforming amendments to new 3806(i) Subsection

(i)of such section, as transferred and redesignated by paragraphs (1), (2)(A), and (11), is amended— #####

(A)by inserting “Restriction on Delegation.—” before “The head of”; and #####

(B)by striking “this subsection” and inserting “this section”. ####

(13)Conforming amendments to new 3806(j) Subsection

(j)of such section, as transferred and redesignated by paragraphs (1), (2)(A), and (11), is amended— #####

(A)by inserting “Inapplicability to Coast Guard.—” before “This”; #####

(B)by striking “subsection applies” and inserting “section applies”; and #####

(C)by striking “section 2303(a)” and inserting “section 3063”. ###

(h)Transfer of Subsection

(h)of Section 2307 Subsection

(h)of section 2307 of title 10, United States Code, is transferred to section 3807 of such title, as added by subsection (a), inserted after the section heading, and amended— ####

(1)by striking the subsection designation and subsection heading; and ####

(2)by striking “subsection (a)(1)” and inserting “section 3801(a) of this title”.

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