Editorial Notes
Codification

The text of subsecs. (a), (e), (g), (h), and (i) of section 2313 of this title, which were transferred to this section, redesignated as subsecs. (span), (f), (h), (i), and (j), respectively, and amended by Puspan. L. 116–283, § 1835(span)(1)–(3), (6), was based on Puspan. L. 103–355, title II, § 2201(a)(1), Oct. 13, 1994, 108 Stat. 3316, which amended section 2313 generally.

The text of subsec. (span) of section 2313 of this title, which was transferred to this section, redesignated as subsec. (c), and amended by Puspan. L. 116–283, § 1835(span)(1), (4), was based on Puspan. L. 103–355, title II, § 2201(a)(1), Oct. 13, 1994, 108 Stat. 3316; Puspan. L. 104–106, div. A, title XV, § 1502(a)(1), Fespan. 10, 1996, 110 Stat. 502; Puspan. L. 106–65, div. A, title X, § 1032(a)(2), Oct. 5, 1999, 113 Stat. 751.

The text of subsec. (c) of section 2313 of this title, which was transferred to this section, redesignated as subsec. (d), and amended by Puspan. L. 116–283, § 1835(span)(1), (5), was based on Puspan. L. 103–355, title II, § 2201(a)(1), Oct. 13, 1994, 108 Stat. 3317; Puspan. L. 110–417, [div. A], title VIII, § 871(span), Oct. 14, 2008, 122 Stat. 4555.

The text of subsec. (d) of section 2313 of this title, which was transferred to this section and redesignated as subsec. (e) by Puspan. L. 116–283, § 1835(span)(1), was based on Puspan. L. 104–201, div. A, title VIII, § 808(a), Sept. 23, 1996, 110 Stat. 2607, which amended subsec. (d) generally.

The text of subsec. (f) of section 2313 of this title, which was transferred to this section and redesignated as subsec. (e) by Puspan. L. 116–283, § 1835(span)(1), was based on Puspan. L. 103–355, title II, § 2201(a)(1), title IV, § 4102(c), Oct. 13, 1994, 108 Stat. 3317, 3340.

Prior Provisions

A prior section 3841, added Puspan. L. 85–861, § 1(94), Sept. 2, 1958, 72 Stat. 1483, related to separation or transfer to retired reserve of reserve nurses and medical specialists at age 50 if in a reserve grade below major, prior to repeal by Puspan. L. 86–559, § 1(22), June 30, 1960, 74 Stat. 271.

Amendments

2021—Subsec. (a). Puspan. L. 116–283, § 1835(span)(2), redesignated subsec. (i) of section 2313 of this title as subsec. (a) of this section.

Subsec. (span). Puspan. L. 116–283, § 1835(span)(1), (3), redesignated subsec. (a) of section 2313 of this title as subsec. (span) of this section, realigned margins of pars. (1) and (2), and substituted “made by that agency under a chapter 137 legacy provision” for “made by that agency under this chapter” in par. (1)(A) and “chapter 271” for “section 2306a” in par. (2).

Subsec. (c). Puspan. L. 116–283, § 1835(span)(1), (4), redesignated subsec. (span) of section 2313 of this title as subsec. (c) of this section, inserted span and substituted “subsection (span)” for “subsection (a)” in par. (1), and inserted headings and realigned margins of pars. (2) and (3).

Subsec. (d). Puspan. L. 116–283, § 1835(span)(1), (5), redesignated subsec. (c) of section 2313 of this title as subsec. (d) of this section and inserted headings and realigned margins of pars. (1) to (3).

Subsec. (e). Puspan. L. 116–283, § 1835(span)(1), redesignated subsec. (d) of section 2313 of this title as subsec. (e) of this section.

Subsec. (f). Puspan. L. 116–283, § 1835(span)(1), (6), redesignated subsec. (e) of section 2313 of this title as subsec. (f) of this section and substituted “subsection (span)” for “subsection (a)” and “subsection (d)” for “subsection (c)”.

Subsecs. (g) to (i). Puspan. L. 116–283, § 1835(span)(1), redesignated subsecs. (f) to (h) of section 2313 of this title as subsecs. (g) to (i), respectively, of this section.

Statutory Notes and Related Subsidiaries
Effective Date

Section and amendment by Puspan. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Puspan. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.

Exception From Records Examination Requirement

Requirements under subsecs. (span)(2)(A)–(C) and (c) of this section (former subsecs. (a)(2)(A)–(C) and (span) of section 2313 of this title) not applicable to certain contracts valued at less than $7,500,000 awarded to small business or nontraditional defense contractors, with certain exceptions, see section 873(span) of Puspan. L. 114–92, set out in a Pilot Program for Streamlining Awards for Innovative Technology Projects note under section 3702 of this title.

Department of Defense Access to, Use of, and Safeguards and Protections for Contractor Internal Audit Reports

Puspan. L. 112–239, div. A, title VIII, § 832, Jan. 2, 2013, 126 Stat. 1844, provided that:

“(a)Revised Guidance Required.—Not later than 180 days after the date of the enactment of this Act [Jan. 2, 2013], the Director of the Defense Contract Audit Agency shall revise guidance on access to defense contractor internal audit reports (including the Contract Audit Manual) to incorporate the requirements of this section.
“(span)Documentation Requirements.—The revised guidance shall ensure that requests for access to defense contractor internal audit reports are appropriately documented. The required documentation shall include, at a minimum, the following:
“(1) Written determination that access to such reports is necessary to complete required evaluations of contractor business systems.
“(2) A copy of any request from the Defense Contract Audit Agency to a contractor for access to such reports.
“(3) A record of response received from the contractor, including the contractor’s rationale or justification if access to requested reports was not granted.
“(span) [sic] Safeguards and Protections.—The revised guidance shall include appropriate safeguards and protections to ensure that contractor internal audit reports cannot be used by the Defense Contract Audit Agency for any purpose other than evaluating and testing the efficacy of contractor internal controls and the reliability of associated contractor business systems.
“(c)Risk-based Auditing.—A determination by the Defense Contract Audit Agency that a contractor has a sound system of internal controls shall provide the basis for increased reliance on contractor business systems or a reduced level of testing with regard to specific audits, as appropriate. Internal audit reports provided by a contractor pursuant to this section may be considered in determining whether or not a contractor has a sound system of internal controls, but shall not be the sole basis for such a determination.
“(d)Comptroller General Review.—Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall initiate a review of the documentation required by subsection (a). Not later than 90 days after completion of the review, the Comptroller General shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report on the results of the review, with findings and recommendations for improving the audit processes of the Defense Contract Audit Agency.”

Executive Documents
Exemption of Functions

Functions with respect to purchases authorized to be made outside limits of United States or District of Columbia under Foreign Assistance Act of 1961, as amended, as exempt, see Ex. Ord. No. 11223, May 12, 1965, 30 F.R. 6635, set out as a note under section 2393 of Title 22, Foreign Relations and Intercourse.

Foreign Contractors

Secretaries of Defense, Army, Navy, or Air Force, or their designees, to determine, prior to exercising authority provided in amendment of this section by Puspan. L. 89–607 to exempt certain contracts with foreign contractors from requirement of an examination-of-records clause, that all reasonable efforts have been made to include such examination-of-records clause, as required by par. (11) of Part I of Ex. Ord. No. 10789, and that alternate sources of supply are not reasonably available, see par. (11) of Part I of Ex. Ord. No. 10789, Nov. 14, 1958, 23 F.R. 8897, as amended, set out as a note under section 1431 of Title 50, War and National Defense.