USC Chapter 388

USC Chapter 388
in effect

10 U.S.C. § 4951 Definitions

In this chapter: (1) The term “eligible entity” means any of the following:(A) A State. (B) A local government. (C) A nonprofit organization. (D) A tribal organization, as defined in section 4(l) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(l)), or an economic enterprise, as defined in section 3(e) of the Indian Financing Act of 1974 (Public Law 93–262; 25 U.S.C. 1452(e)), whether or not such economic enterprise is organized for profit purposes or nonprofit purposes. (2) The term “distressed area” means—(A) the area of a unit of local government (or such area excluding the area of any defined political jurisdiction within the area of such unit of local government) that—(i) has a per capita income of 80 percent or less of the State average; or (ii) has an unemployment rate that is one percent greater than the national average for the most recent 24-month period for which statistics are available; or (B) a reservation, as defined in section 3(d) of the Indian Financing Act of 1974 (Public Law 93–262; 25 U.S.C. 1452(d)). (3) The term “Secretary” means the Secretary of Defense acting through the Under Secretary of Defense for Acquisition and Sustainment. (4) The terms “State” and “local government” have the meaning given those terms in section 6302 of title 31. (5) The term “business entity” means a corporation, association, partnership, limited liability company, limited liability partnership, consortia, not-for-profit, or other legal entity.

10 U.S.C. § 4952 Purposes

The purposes of the program authorized by this chapter are— (1) to increase assistance by the Department of Defense to eligible entities furnishing procurement technical assistance to business entities; (2) to assist eligible entities in the payment of the costs of establishing and carrying out new procurement technical assistance programs and maintaining existing procurement technical assistance programs; and (3) to foster innovation for the defense industrial base and to diversify and expand the defense industrial base.

10 U.S.C. § 4953 Regulations

The Secretary of Defense shall prescribe regulations to carry out this chapter, and shall consult with an association recognized under section 4954(f) 11 See References in Text note below. regarding any revisions to such regulations.

10 U.S.C. § 4954 Cooperative agreements

(a) Authority.—The Secretary, in accordance with the provisions of this chapter, may enter into cooperative agreements with eligible entities to carry out the purposes of this chapter. (b) Agreements.—(1) Under any such cooperative agreement, the eligible entity shall agree to sponsor programs to furnish procurement technical assistance to business entities and the Secretary shall agree to defray not more than 75 percent of the eligible entity’s cost of furnishing such assistance under such programs, except that—(A) in the case of a program sponsored by such an entity that provides services solely in a distressed area, the Secretary may agree to furnish more than 75 percent, but not more than 85 percent, of such cost with respect to such program; and (B) in the case of a program sponsored by such an entity that provides assistance for covered small businesses pursuant to section 4959(b) of this title, the Secretary may agree to furnish the full cost of such assistance. (2) The Secretary shall have the ability to waive or modify the percentages specified in paragraph (1), on a case-by-case basis, if the Secretary determines that it would be in the best interest of the program. (c) Weight to Be Given Successful Past Performance.—In conducting a competition for the award of a cooperative agreement under subsection (a), the Secretary shall give significant weight to successful past performance of eligible entities under a cooperative agreement under this section. (d) Determination of Level of Funding.—In determining the level of funding to provide under an agreement under subsection (b), the Secretary shall consider the forecast by the eligible entity of demand for procurement technical assistance, and, in the case of an established program under this chapter, the outlays and receipts of such program during prior years of operation. (e) Association Recognition and Duties.—Eligible entities that provide procurement technical assistance pursuant to this chapter may form an association to pursue matters of common concern. If more than a majority of such eligible entities are members of such an association, the Secretary shall—(1) recognize the existence and activities of such an association; and (2) jointly develop with such association a model cooperative agreement that may be used at the option of the Secretary and an eligible entity. (f) Waiver of Government Cost Share Restriction.—If the Secretary of Defense determines it to be in the best interests of the Federal Government, the Secretary may waive the restrictions on the percentage of eligible costs covered by the program under section (b). The Secretary shall submit to the congressional defense committees a written justification for such determination.

10 U.S.C. § 4955 Funding

(a) In General.—Except as provided in subsection (c), the value of the assistance furnished by the Secretary to any eligible entity to carry out a procurement technical assistance program under a cooperative agreement under this chapter during any fiscal year may not exceed—(1) in the case of a program operating on a Statewide basis, other than a program referred to in paragraph (3) or (4), $1,500,000; (2) in the case of a program operating on less than a Statewide basis, other than a program referred to in paragraph (3) or (4), $750,000; (3) in the case of a program operated wholly within one service area of the Bureau of Indian Affairs by an eligible entity referred to in section 4951(1)(D) of this title, $450,000; or (4) in the case of a program operated wholly within more than one service area of the Bureau of Indian Affairs by an eligible entity referred to in section 4951(1)(D) of this title, $1,500,000. (b) Determinations on Scope of Operations.—A determination of whether a procurement technical assistance program is operating on a Statewide basis or on less than a Statewide basis or is operated wholly within one or more service areas of the Bureau of Indian Affairs by an eligible entity referred to in section 4951(1)(D) of this title shall be made in accordance with regulations prescribed by the Secretary of Defense. (c) Exception.—The value of the assistance provided in accordance with section 4959(b) of this title is not subject to the limitations in subsection (a). (d) Use of Program Income.—(1) An eligible entity that earned income in a specified fiscal year from activities carried out pursuant to a procurement technical assistance program funded under this chapter may expend an amount of such income, not to exceed 25 percent of the cost of furnishing procurement technical assistance in such specified fiscal year, during the fiscal year following such specified fiscal year, to carry out a procurement technical assistance program funded under this chapter. (2) An eligible entity that does not enter into a cooperative agreement with the Secretary for a fiscal year—(A) shall notify the Secretary of the amount of any income the eligible entity carried over from the previous fiscal year; and (B) may retain an amount of such income equal to 10 percent of the value of assistance furnished by the Secretary under this section during the previous fiscal year. (3) In determining the value of assistance furnished by the Secretary under this section for any fiscal year, the Secretary shall account for the amount of any income the eligible entity carried over from the previous fiscal year. (e) Funding From Other Federal Agencies.—The Secretary may accept and use funds from other Federal agencies and departments for execution and administration of the program authorized by this chapter.

10 U.S.C. § 4956 Distribution

The Secretary shall allocate funds available for assistance under this chapter equally to each Department of Defense contract administrative services district. If in any such fiscal year there is an insufficient number of satisfactory proposals in a district for cooperative agreements to allow effective use of the funds allocated to that district, the funds remaining with respect to that district shall be reallocated among the remaining districts.

10 U.S.C. § 4957 Subcontractor information

(a) Contractors to Provide Information.—The Secretary of Defense shall require that any defense contractor in any year shall provide to an eligible entity with which the Secretary has entered into a cooperative agreement under this chapter, on the request of such entity, the information specified in subsection (b). (b) Information to Be Provided.—Information to be provided under subsection (a) is a listing of the name of each appropriate employee of the contractor who has responsibilities with respect to entering into contracts on behalf of such contractor that constitute subcontracts of contracts being performed by such contractor, together with the business address and telephone number and area of responsibility of each such employee. (c) Frequency.—A defense contractor need not provide information under this section to a particular eligible entity more frequently than once a year. (d) Definition.—In this section, the term “defense contractor”, for any year, means a person awarded a contract with the Department of Defense in that year for an amount in excess of $1,000,000.

10 U.S.C. § 4958 Authority to provide certain types of technical assistance

(a) Assistance Relating to Certain Non-defense Contracts.—The procurement technical assistance furnished by eligible entities assisted by the Department of Defense under this chapter may include technical assistance relating to contracts entered into with (1) Federal departments and agencies other than the Department of Defense, and (2) State and local governments. (b) Information Relating to Assistance and Other Programs Available.—An eligible entity assisted by the Department of Defense under this chapter also may furnish information relating to assistance and other programs available pursuant to the Defense Conversion, Reinvestment, and Transition Assistance Act of 1992. (c) Education on Requirements Applicable to Small Businesses Under Certain Regulations.—An eligible entity assisted by the Department of Defense under this chapter also may furnish education on the requirements applicable to small businesses under the regulations issued—(1) under section 38 of the Arms Export Control Act (22 U.S.C. 2778), and on compliance with those requirements; (2) under section 9 of the Small Business Act (15 U.S.C. 638), and on compliance with those requirements; (3) under clause 252.204–7012 of the Defense Acquisition Regulation Supplement, or any successor regulation, and on compliance with those requirements (and any successor requirements); (4) under section 847 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92; 133 Stat. 1505), and on compliance with those requirements (and any such successor requirements); and (5) under the AUKUS partnership (as defined in section 1321 of the National Defense Authorization Act for Fiscal Year 2024 (22 U.S.C. 10401). (d) The Under Secretary of Defense for Acquisition and Sustainment may—(1) provide assistance to an eligible entity that is a center of excellence for the APEX Accelerator Program of the Department of Defense (or a successor program) to provide specialized expertise to business entities outside of the geographic area served by the center of excellence; and (2) may waive the government cost share restriction in accordance with section 4954(f) of this chapter.

10 U.S.C. § 4959 Advancing small business growth

(a) Contract Clause Required.—(1) The Under Secretary of Defense for Acquisition and Sustainment shall require the clause described in paragraph (2) to be included in each covered contract awarded by the Department of Defense. (2) The clause described in this paragraph is a clause that—(A) requires the contractor to acknowledge that acceptance of the contract may cause the business to exceed the applicable small business size standards (established pursuant to section 3(a) of the Small Business Act) for the industry concerned and that the contractor may no longer qualify as a small business concern for that industry; and (B) encourages the contractor to develop capabilities and characteristics typically desired in contractors that are competitive as an other-than-small business in that industry. (b) Availability of Assistance.—Covered small businesses may be provided assistance as part of any procurement technical assistance furnished pursuant to this chapter. (c) Definitions.—In this section:(1) The term “covered contract” means a contract—(A) awarded to a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act; and (B) with an estimated annual value—(i) that will exceed the applicable receipt-based small business size standard; or (ii) if the contract is in an industry with an employee-based size standard, that will exceed $70,000,000. (2) The term “covered small business” means a qualified small business concern as defined pursuant to section 3(a) of the Small Business Act that has entered into a contract with the Department of Defense that includes a contract clause described in subsection (a)(2).

10 U.S.C. § 4961 Administrative and other costs

The Secretary may use, out of the amount appropriated for a fiscal year for operation and maintenance for the procurement technical assistance program authorized by this chapter— (1) an amount not exceeding four percent of such amount to defray the expenses of administering the provisions of this chapter during such fiscal year; and (2) an amount determined appropriate by the Secretary to assist eligible entities in payment of costs of eligible entities—(A) for meetings, including meetings of an association recognized under section 4954(f),11 See References in Text note below. to discuss best practices for the improvement of the operations of procurement technical assistance centers; and (B) for membership dues for any association of such centers created by eligible entities, training fees and associated travel for training to carry out the purposes of this chapter, and voluntary participation on any committees or board of such an association.

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