§ 4651. Expenditure of appropriations: limitation

553 words·~3 min read·/usc/title-10/section-4651

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

(Added Pub. L. 87–651, title II, § 207(a), Sept. 7, 1962, 76 Stat. 520, § 2207; amended Pub. L. 104–106, div. A, title VIII, § 801, Feb. 10, 1996, 110 Stat. 389; Pub. L. 111–350, § 5(b)(5), Jan. 4, 2011, 124 Stat. 3842; renumbered § 4651, Pub. L. 116–283, div. A, title XVIII, § 1862(b), Jan. 1, 2021, 134 Stat. 4277.)

The 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 June 30, 1954” are omitted as executed.

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William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Public Law 116-283

16 references not yet in our index

Pub. L. 87–651, title II, § 207(a)
76 Stat. 520
Pub. L. 104–106, div. A, title VIII, § 801
110 Stat. 389
Pub. L. 111–350, § 5(b)(5)
124 Stat. 3842
134 Stat. 4277
Aug. 10, 1956, ch. 1041
70A Stat. 260
Pub. L. 99–145, title XIII, § 1301
99 Stat. 736
Pub. L. 112–239, div. A, title V, § 552(b)
126 Stat. 1741
Pub. L. 111–350
41 U.S.C. 403(11)
Pub. L. 104–106

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§ 4651

Expenditure of appropriations: limitation

Bills×57

Fed. Reg.×16

Pub. L.×8

Stat. Comp.×4

Stat.×3

C.F.R.×2

U.S.C.×2

U.S.C.§ 134

Pub. L.Public Law 116-283

U.S.C.§ 2207

U.S.C.§ 3001

Pub. L.Pub. L. 87–651, title II, § 207(a)

Stat.76 Stat. 520

Pub. L.Pub. L. 104–106, div. A, title VIII, § 801

Stat.110 Stat. 389

Pub. L.Pub. L. 111–350, § 5(b)(5)

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