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NOTES:


Source

(Aug. 10, 1956, ch. 1041, 70A Stat. 131; Pub. L. 85–800, § 9, Aug. 28, 1958, 72 Stat. 967; Pub. L. 93–155, title VIII, § 807(c), Nov. 16, 1973, 87 Stat. 616; Pub. L. 100–370, § 1(f)(1)(A), July 19, 1988, 102 Stat. 846; Pub. L. 101–510, div. A, title VIII, § 836(a), (b), title XIII, § 1322(a)(4), Nov. 5, 1990, 104 Stat. 1615, 1616, 1671; Pub. L. 102–25, title VII, § 701(d)(4), (j)(2)(A), Apr. 6, 1991, 105 Stat. 114, 116; Pub. L. 102–190, div. A, title X, § 1061(a)(10), Dec. 5, 1991, 105 Stat. 1472; Pub. L. 102–484, div. A, title X, § 1052(24), Oct. 23, 1992, 106 Stat. 2500; Pub. L. 103–355, title II, § 2001(a)–(g), Oct. 13, 1994, 108 Stat. 3301, 3302; Pub. L. 105–85, div. A, title VIII, § 802, Nov. 18, 1997, 111 Stat. 1831; Pub. L. 106–391, title III, § 306, Oct. 30, 2000, 114 Stat. 1592.)

Historical and Revision Notes 1956 Act
Revised section Source (U.S. Code) Source (Statutes at Large)
2307(a)
2307(b) 41:154(a).
41:154 (less (a)). Feb. 19, 1948, ch. 65, § 5, 62 Stat. 23.

In subsection (a), the words “and appropriate” are omitted as surplusage. The words “whether or not the contract previously provided for such payments” are substituted for the words “heretofore or hereafter executed”.
In subsection (b), the words “under subsection (a)” are inserted for clarity. The words “provide for” are substituted for the words “include as security provision for”. The words “United States” are substituted for the word “Government”.
1988 Act
Subsection (e) is based on Pub. L. 99–145, title IX, § 916, Nov. 8, 1985, 99 Stat. 688.

References in Text

Level IV of the Executive Schedule, referred to in subsec. (i)(9), is set out in section 5315 of Title 5, Government Organization and Employees.

Prior Provisions

Provisions similar to those in subsec. (g) of this section were contained in sections 7312, 7364, and 7521 of this title prior to repeal by Pub. L. 103–355, § 2001(j)(1).

Amendments

2000—Subsec. (i)(8). Pub. L. 106–391 substituted “(4), and (6)” for “and (4)”.
1997—Subsecs. (h), (i). Pub. L. 105–85 added subsec. (h) and redesignated former subsec. (h) as (i).
1994—Pub. L. 103–355, § 2001(a)(1), substituted “Contract financing” for “Advance payments” in section catchline.
Subsec. (a). Pub. L. 103–355, § 2001(a)(2), inserted heading.
Subsec. (a)(2). Pub. L. 103–355, § 2001(c), struck out “bid” before “solicitations”.
Subsec. (b). Pub. L. 103–355, § 2001(a)(7), (b), added subsec. (b) and redesignated former subsec. (b) as (c).
Pub. L. 103–355, § 2001(a)(3), inserted heading.
Subsec. (c). Pub. L. 103–355, § 2001(a)(7), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).
Pub. L. 103–355, § 2001(a)(4), inserted heading.
Subsec. (d). Pub. L. 103–355, § 2001(d), inserted before period at end “and is effective immediately upon the first advancement of funds without filing, notice, or any other action by the United States”.
Pub. L. 103–355, § 2001(a)(7), redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e).
Pub. L. 103–355, § 2001(a)(5), inserted heading.
Subsec. (e). Pub. L. 103–355, § 2001(a)(7), redesignated subsec. (d) as (e). Former subsec. (e) redesignated (h).
Pub. L. 103–355, § 2001(a)(6), inserted heading.
Subsec. (e)(1). Pub. L. 103–355, § 2001(e)(1), substituted “work accomplished that meets standards established under the contract” for “work, which meets standards of quality established under the contract, that has been accomplished”.
Subsec. (e)(3). Pub. L. 103–355, § 2001(e)(2), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “This subsection does not apply to any contract for an amount not in excess of the amount of the small purchase threshold.”
Subsecs. (f), (g). Pub. L. 103–355, § 2001(f), (g), added subsecs. (f) and (g).
Subsec. (h). Pub. L. 103–355, § 2001(a)(7), redesignated subsec. (e) as (h).
1992—Subsec. (e)(1). Pub. L. 102–484 substituted “(1)” for “(l)” as par. designation after “(e)”.
1991—Subsec. (d)(3). Pub. L. 102–25, § 701(d)(4), substituted “any contract for an amount not in excess of the amount of the small purchase threshold” for “contracts for amounts less than the maximum amount for small purchases specified in section 2304 (g)(2) of this title”.
Subsec. (e). Pub. L. 102–25, § 701(j)(2)(A), redesignated subsec. (f) as (e).
Subsec. (f). Pub. L. 102–190, which directed the substitution of “(1)” for “(l)” as par. designation after “(f)”, could not be executed because “(l)” did not appear after “(f)”.
Pub. L. 102–25, § 701(j)(2)(A), redesignated subsec. (f) as (e).
1990—Subsec. (d). Pub. L. 101–510, § 1322(a)(4), redesignated subsec. (e) as (d) and struck out former subsec. (d) which read as follows: “Payments under subsection (a) in the case of any contract, other than partial, progress, or other payments specifically provided for in such contract at the time such contract was initially entered into, may not exceed $25,000,000 unless the Committees on Armed Services of the Senate and the House of Representatives have been notified in writing of such proposed payments and 60 days of continuous session of Congress have expired following the date on which such notice was transmitted to such Committees and neither House of Congress has adopted, within such 60-day period, a resolution disapproving such payments. For purposes of this section, the continuity of a session of Congress is broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of such 60-day period.”
Subsec. (e). Pub. L. 101–510, § 1322(a)(4)(B), redesignated subsec. (e) as (d).
Pub. L. 101–510, § 836(b), inserted at end of par. (1) “The contractor shall provide such information and evidence as the Secretary of Defense determines necessary to permit the Secretary to carry out the preceding sentence.”
Subsec. (f). Pub. L. 101–510, § 836(a), added subsec. (f).
1988—Subsec. (e). Pub. L. 100–370 added subsec. (e).
1973—Subsec. (d). Pub. L. 93–155 added subsec. (d).
1958—Pub. L. 85–800 authorized advance or other payments under contracts for property or services by agency, authorized insertion in bid solicitations of provision limiting advance or progress payments to small business concerns, restricted payments under subsec. (a) to unpaid contract price, and reworded generally conditions for making advance payments.

Effective Date of 1994 Amendment

For effective date and applicability of amendment by Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set out as a note under section 251 of Title 41, Public Contracts.

Effective Date of 1990 Amendment

Section 836(c) of Pub. L. 101–510, as amended by Pub. L. 102–25, title VII, § 701(j)(2)(B), Apr. 6, 1991, 105 Stat. 116, provided that: “The provisions of section 2307 of title 10, United States Code, that are added by the amendments made by subsections (a) and (b) shall apply with respect to contracts entered into on or after May 6, 1991.”

Relationship of 1994 Amendment to Prompt Payment Requirements

Section 2001(h) of Pub. L. 103–355 provided that: “The amendments made by this section [amending this section and section 7522 of this title and repealing sections 7312, 7364, and 7521 of this title] are not intended to impair or modify procedures required by the provisions of chapter 39 of title 31, United States Code, and the regulations issued pursuant to such provisions of law (as such procedures are in effect on the date of the enactment of this Act [Oct. 13, 1994]), except that the Government may accept payment terms offered by a contractor offering a commercial item.”

Limitations on Progress Payments

Pub. L. 99–145, title IX, § 916, Nov. 8, 1985, 99 Stat. 688, which required Secretary of Defense to ensure that any progress payment under a defense contract be commensurate with work accomplished at standard of quality in contract, that such payments be limited to 80 percent of work accomplished so long as contract terms are indefinite, that this provision be waived for small purchases, and that this provision apply only to contracts for which solicitations were issued on or after 150 days after Nov. 8, 1985, was repealed and restated in subsec. (e) of this section by Pub. L. 100–370, § 1(f)(1), July 19, 1988, 102 Stat. 846.

Obligations Entered Into Before November 16, 1973

Section 807(e) of Pub. L. 93–155 provided that: “The amendments made by this section [amending this section, section 1431 of Title 50, War and National Defense, and sections 468 and 2092 of Appendix to Title 50] shall not affect the carrying out of any contract, loan, guarantee, commitment, or other obligation entered into prior to the date of enactment of this section [Nov. 16, 1973].”


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