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Amendment to other transaction authority

Division A · Title VIII: Acquisition Policy, Acquisition Management, and Related Matters · Subtitle B: Amendments to General Contracting Authorities, Procedures, and Limitations

Plain-language summaryAI

The section updates rules for using a special contracting method that allows more flexible business arrangements for defense projects. It clarifies when officials can use this method, such as for innovative products, faster delivery, or strengthening the defense industry, and requires them to consider factors like involving small or nontraditional businesses and sharing costs. It also makes related changes to other laws to reflect these updates.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 823.
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(a) In general

Section 4022 of title 10, United States Code, is amended—

(1)

in subsection (a)(2)—

(A)

in subparagraph (A), by striking agency that and all that follows through the use and inserting agency that the use ;

(B)

in subparagraph (B)(i), by striking writing that and all that follows through the use and inserting writing that the use ; and

(C)

in subparagraph (C), by striking subsection (f) each place it appears and inserting subsection (g) ;

(2)

by amending subsection (d) to read as follows:

(d) Appropriate use of authority

An official responsible for entering into a transaction under the authority of this section may use such authority upon determining any one of the following conditions:

(1)

The use of such transaction permits the Secretary to use innovative business arrangements or structures that would not be practical or feasible under a contract.

(2)

The prototype project offered is an innovative or novel product, service, process, or business practice that is more practicable to acquire under such transaction than under a contract.

(3)

The use of such transaction is expected to accelerate delivery of capability to members of the armed forces compared with other procurement methods.

(4)

The use of such transaction provides opportunity to expand or strengthen the defense industrial base in a manner that would not be practical or feasible under a contract.

(3)

by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and

(4)

by inserting after subsection (d) the following new subsection:

(e) Additional considerations

The official responsible for entering into a transaction under this section shall consider other actions by an offeror relating to such transaction if such actions will increase value to the Government, or contribute positively to the expansion, diversification, or resilience of the defense industrial base, including—

(1)

significant participation by one or more nontraditional defense contractors (as defined in section 3014 of this title) or small business concerns (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 )), including through teaming arrangements, joint ventures, or consortia;

(2)

the potential to reduce technical, schedule, or performance risk, or accelerate transition to production; or

(3)

fielding through use of non-Federal cost sharing.

(b) Conforming amendments

(1) National Security Act of 1947

Section 102A(m)(6)(C) of the National Security Act of 1947 ( 50 U.S.C. 3024(m)(6)(C) ) is amended—

(A)

in clause (v), by striking of Defense ;

(B)

by repealing clause (vi); and

(C)

in clause (vii)—

(i)

in the matter preceding subclause (I), by striking section 4022(f)(2) and inserting section 4022(g)(2) ; and

(ii)

in subclause (V)(cc), by striking section 4022(f)(5) and inserting section 4022(g)(5) .

(2) Homeland Security Act of 2002

Section 831(d) of the Homeland Security Act of 2002 ( 6 U.S.C. 391(d) ) is amended by striking 4022(e) and inserting 4022(f) .

(3) John S. McCain National Defense Authorization Act for Fiscal Year 2019

Section 873(c)(1) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 ( Public Law 115–232 ; 10 U.S.C. 4021 note) is amended—

(A)

in subparagraph (A), by striking subsection (f) and inserting subsection (g) ; and

(B)

in subparagraph (E), by striking or (f) and inserting or (g) .

(4) James M. Inhofe National Defense Authorization Act for Fiscal Year 2023

Section 322(h)(2) of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 ( Public Law 117–263 ; 10 U.S.C. 2911 note) is amended by striking subsection (f) and inserting subsection (g) .

(5) Military Construction Authorization Act for Fiscal Year 2026

Section 2828 of the Military Construction Authorization Act for Fiscal Year 2026 ( Public Law 119–60 ) is amended by striking section 4022(i) and inserting section 4022(j) .