republic-os/legal/us/code/title-10/chapter-608/section-6321.md

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LegalText	10 U.S.C. § 6321	Costs not allowed under covered contracts	us	united_states_code	code_section	10	ARMED FORCES	608	ADMINISTRATIVE MATTERS	6321	10 U.S.C. § 6321	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc10@119-100.zip	/us/usc/t10/s6321	data/legal/raw/us/code/title-10/usc10.xml	b896f38a65cb65d122b5274ac861002720cf966f1792679c3d7d4ef21f309e37	06a2679d38355c44f4219c983fdad34009233205d6ba271593a4c1b17a739ec1	7071178226d526e443ae0a2d0af357711e4dd5a83fa0a111f32edded1dbf99c7	2026-07-04	official	legal us-code

10 U.S.C. § 6321 - Costs not allowed under covered contracts

Text

(a) In General.— The following costs are not allowable under a covered contract:

(1) Costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities).

(2) Costs incurred to influence (directly or indirectly) legislative action on any matter pending before Congress or a State legislature.

(3) Costs incurred in defense of any civil or criminal fraud proceeding or similar proceeding (including filing of any false certification) brought by the United States where the contractor is found liable or has pleaded nolo contendere to a charge of fraud or similar proceeding (including filing of false certification).

(4) Payments of fines and penalties resulting from violations of, or failure to comply with, Federal, State, local, or foreign laws and regulations, except when incurred as a result of compliance with specific terms and conditions of the contract or specific written instructions from the contracting officer authorizing in advance such payments in accordance with applicable regulations of the Secretary of Energy.

(5) Costs of membership in any social, dining, or country club or organization.

(6) Costs of alcoholic beverages.

(7) Contributions or donations, regardless of the recipient.

(8) Costs of advertising designed to promote the contractor or its products.

(9) Costs of promotional items and memorabilia, including models, gifts, and souvenirs.

(10) Costs for travel by commercial aircraft or by travel by other than common carrier that is not necessary for the performance of the contract and the cost of which exceeds the amount of the standard commercial fare.

(b) Regulations; Costs of Information Provided to Congress or State Legislatures and Related Costs.— (1) Not later than 150 days after November 8, 1985, the Secretary of Energy shall prescribe regulations to implement this section. Such regulations may establish appropriate definitions, exclusions, limitations, and qualifications. Such regulations shall be published in accordance with section 1707 of title 41.

(2) In any regulations implementing subsection (a)(2), the Secretary may not treat as not allowable (by reason of such subsection) the following costs of a contractor:

(A) Costs of providing to Congress or a State legislature, in response to a request from Congress or a State legislature, information of a factual, technical, or scientific nature, or advice of experts, with respect to topics directly related to the performance of the contract.

(B) Costs for transportation, lodging, or meals incurred for the purpose of providing such information or advice.

(c) Covered Contract Defined.— In this section, the term “covered contract” means a contract for an amount more than $100,000 entered into by the Secretary of Energy obligating funds appropriated for national security programs of the Department of Energy.

(d) Effective Date.— Subsection (a) shall apply with respect to costs incurred under a covered contract on or after 30 days after the regulations required by subsection (b) are issued.

(Added and amended Pub. L. 119–60, div. C, title XXXI, § 3111(a), (d)(2)(B), Dec. 18, 2025, 139 Stat. 1440, 1462.)

Notes

Editorial Notes

Prior ProvisionsA prior section 6321 was renumbered section 8321 of this title. Provisions similar to those in this section were contained in section 2781 of Title 50, War and National Defense, prior to repeal by Pub. L. 119–60, § 3111(b)(1).

Amendments2025—Pub. L. 119–60, § 3111(d)(2)(B), realigned margins.