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2341 2351 2375 2381
136. Provisions Relating to Specific Programs
ment Program 143. Production by Military Agencies 144. Major Defense Acquisition Programs 145. Cataloging and Standardization 146. Contracting for Performance of Civilian Commercial
or Industrial Type Functions 147. Commissaries and Exchanges and Other Morale, Wel
fare, and Recreation Activities 148. National Defense Technology and Industrial Base,
Defense Reinvestment, and Defense Conversion
2411 2421 2430 2451
CHAPTER 131-PLANNING AND COORDINATION
Sec. 2201. Apportionment of funds: authority for exemption; excepted expenses. 2202. Regulations on procurement, production, warehousing, and supply
distribution functions. 2203. Budget estimates. 2204. Obligation of appropriations. 2205. Reimbursements. 2206. Disbursement of funds of military department to cover obligation of
another agency of Department of Defense. 2207. Expenditure of appropriations: limitation. 2208. Working-capital funds. 2209. Management funds. 2210. Proceeds of sales of supplies: credit to appropriations. 2211. Reimbursement for equipment, material, or services furnished members of
the United Nations. 2212. Obligations for contract services: reporting in budget object classes. 2213. Limitation on acquisition of excess supplies. 2214. Transfer of funds: procedure and limitations. 2215. Transfer of funds to other departments and agencies: limitation. 2216. Defense Modernization Account. [2216a. Repealed.] 2217. Comparable budgeting for common procurement weapon systems. 2218. National Defense Sealift Fund. 2219. Retention of morale, welfare, and recreation funds by military
installations: limitation. 2220. Performance based management: acquisition programs. [2221. Repealed.) [2222. Repealed.) 2223. Information technology: additional responsibilities of Chief Information Of
ficers. 2224. Defense Information Assurance Program. 2224a. Information security: continued applicability of expiring Governmentwide
requirements to the Department of Defense. 2225. Information technology purchases: tracking and management. 2226. Contracted property and services: prompt payment of vouchers. 2227. Electronic submission and processing of claims for contract payments. 2228. Military equipment and infrastructure: prevention and mitigation of corro
sion. $ 2201. Apportionment of funds: authority for exemptions;
excepted expenses (a) EXEMPTION FROM APPORTIONMENT REQUIREMENT.-If the President determines such action to be necessary in the interest of national defense, the President may exempt from the provisions of section 1512 of title 31 appropriations, funds, and contract authorizations available for military functions of the Department of Defense.
(b) AIRBORNE ALERTS.—Upon a determination by the President that such action is necessary, the Secretary of Defense may provide for the cost of an airborne alert as an excepted expense under section 3732(a) of the Revised Statutes (41 U.S.C. 11(a)).
(c) MEMBERS ON ACTIVE DUTY.-Upon a determination by the President that it is necessary to increase (subject to limits imposed
by law) the number of members of the armed forces on active duty beyond the number for which funds are provided in appropriation Acts for the Department of Defense, the Secretary of Defense may provide for the cost of such additional members as an excepted expense under section 3732(a) of the Revised Statutes (41 U.S.C. 11(a)).
(d) NOTIFICATION TO CONGRESS.—The Secretary of Defense shall immediately notify Congress of the use of any authority under this section. (Added P.L. 100—370, $ 1(d)(1), July 19, 1988, 102 Stat. 841; amended P.L. 106–65, § 1032(a)(1), Oct. 5, 1999, 113 Stat. 751.) $ 2202. Regulations
procurement, production, warehousing, and supply distribution functions The Secretary of Defense shall prescribe regulations governing the performance within the Department of Defense of the procurement, production, warehousing, and supply distribution functions, and related functions, of the Department of Defense. (Aug. 10, 1956, ch. 1041, 70A Stat. 120; Dec. 4, 1987, P.L. 100–180, $ 1202, 101 Stat. 1153; revised in its entirety P.L. 103–355, $ 3061(a), Oct. 13, 1994, 108 Stat. 3336.) $ 2203. Budget estimates
To account for, and report, the cost of performance of readily identifiable functional programs and activities, with segregation of operating and capital programs, budget estimates of the Department of Defense shall be prepared, presented, and justified, where practicable, and authorized programs shall be administered, in such form and manner as the Secretary of Defense, subject to the authority and direction of the President, may prescribe. As far as practicable, budget estimates and authorized programs of the military departments shall be uniform and in readily comparable form. The budget for the Department of Defense submitted to Congress for each fiscal year shall include data projecting the effect of the appropriations requested for materiel readiness requirements. The Secretary of Defense shall provide that the budget justification documents for such budget include information on the number of employees of contractors estimated to be working on contracts of the Department of Defense during the fiscal year for which the budget is submitted. Such information shall be set forth in terms of employee-years or such other measure as will be uniform and readily comparable with civilian personnel of the Department of Defense. (Added P.L. 87–651, $ 207(a), Sept. 7, 1962, 76 Stat. 520; amended P.L. 97–295, § 1(21), Oct. 12, 1982, 96 Stat. 1290; P.L. 99–661, $311, Nov. 14, 1986, 100 Stat. 3851.) $ 2204. Obligation of appropriations
To prevent overdrafts and deficiencies in the fiscal year for which appropriations are made, appropriations made to the Department of Defense or to a military department, and reimbursements thereto, are available for obligation and expenditure only under scheduled rates of obligation, or changes thereto, that have been approved by the Secretary of Defense. This section does not prohibit the Department of Defense from incurring a deficiency that it has been authorized by law to incur. (Added P.L. 87-651, $ 207(a), Sept. 7, 1962, 76 Stat. 520.)
$ 2205. Reimbursements (a) AVAILABILITY
OF REIMBURSEMENTS.-Reimbursements made to appropriations of the Department of Defense or a department or agency thereof under sections 1535 and 1536 of title 31, or other amounts paid by or on behalf of a department or agency of the Department of Defense to another department or agency of the Department of Defense, or by or on behalf of personnel of any department or organization, for services rendered or supplies furnished, may be credited to authorized accounts. Funds so credited are available for obligation for the same period as the funds in the account so credited. Such an account shall be accounted for as one fund on the books of the Department of the Treasury.
(b) FIXED RATE FOR REIMBURSEMENT FOR CERTAIN SERVICES.– The Secretary of Defense and the Secretaries of the military departments may charge a fixed rate for reimbursement of the costs of providing planning, supervision, administrative, or overhead services incident to any construction, maintenance, or repair project to real property or for providing facility services, irrespective of the appropriation financing the project or facility services. (Added P.L. 87–651, $ 207(a), Sept. 7, 1962, 76 Stat. 520; amended P.L. 96–513, $ 511(71), Dec. 12, 1980, 94 Stat. 2926; P.L. 97–258, $3(b)(4), Sept. 13, 1982, 96 Stat. 1063; P.L. 103–337, $ 2804(a), (b)(1), Oct. 5, 1994, 108 Stat. 3053.) $ 2206. Disbursement of funds of military department to
cover obligation of another agency of Department
of Defense As far as authorized by the Secretary of Defense, a disbursing official of a military department may, out of available advances, make disbursements to cover obligations in connection with any function, power, or duty of another department or agency of the Department of Defense and charge those disbursements on vouchers, to the appropriate appropriation of that department or agency. Disbursements so made shall be adjusted in settling the accounts of the disbursing official. (Added P.L. 87–651, $ 207(a), Sept. 7, 1962, 76 Stat. 520; amended P.L. 97–258, $2(b)(1)(A), Sept. 13, 1982, 96 Stat. 1052.) $ 2207. 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,