republic-os/legal/us/code/title-10/chapter-363/section-4651.md

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LegalText	10 U.S.C. § 4651	Expenditure of appropriations: limitation	us	united_states_code	code_section	10	ARMED FORCES	363	PROHIBITION AND PENALTIES	4651	10 U.S.C. § 4651	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/s4651	data/legal/raw/us/code/title-10/usc10.xml	130abde60a7fb398bece8ba3f8611ab4ec340d2c1e81563abe1cfcc253ba68a6	06a2679d38355c44f4219c983fdad34009233205d6ba271593a4c1b17a739ec1	f44a8ae98756ab14b7b9f0c344a1398e061af773d21435291497bcfacc3b7cb6	2026-07-04	official	legal us-code

10 U.S.C. § 4651 - Expenditure of appropriations: limitation

Text

(a) Money appropriated to the Department of Defense may not be spent under a contract other than a contract for personal services unless that contract provides that—

(1) the United States may, by written notice to the contractor, terminate the right of the contractor to proceed under the contract if the Secretary concerned or his designee finds, after notice and hearing, that the contractor, or his agent or other representative, offered or gave any gratuity, such as entertainment or a gift, to an officer, official, or employee of the United States to obtain a contract or favorable treatment in the awarding, amending, or making of determinations concerning the performance, of a contract; and

(2) if a contract is terminated under clause (1), the United States has the same remedies against the contractor that it would have had if the contractor had breached the contract and, in addition to other damages, is entitled to exemplary damages in an amount at least three, but not more than 10, as determined by the Secretary or his designee, times the cost incurred by the contractor in giving gratuities to the officer, official, or employee concerned.

The existence of facts upon which the Secretary makes findings under clause (1) may be reviewed by any competent court.

(b) This section does not apply to a contract that is for an amount not greater than the simplified acquisition threshold (as defined in section 134 of title 41).

(Added Pub. L. 87–651, title II, § 207(a), Sept. 7, 1962, 76 Stat. 520, § 2207; amended Pub. L. 104–106, div. A, title VIII, § 801, Feb. 10, 1996, 110 Stat. 389; Pub. L. 111–350, § 5(b)(5), Jan. 4, 2011, 124 Stat. 3842; renumbered § 4651, Pub. L. 116–283, div. A, title XVIII, § 1862(b), Jan. 1, 2021, 134 Stat. 4277.)

Notes

Historical and Revision Notes Revised sectionSource (U.S. Code)Source (Statutes at Large) 22075:174d.June 30, 1954, ch. 432, § 719, 68 Stat. 353. The following substitutions are made: “spent” for “expended”; “United States” for “Government”; “if a contract is terminated under clause (1)” for “that in the event any such contract is so terminated”; and “has . . . that it would have had if” for “shall be entitled . . . to pursue . . . as it could pursue in the event of”. The word “official” is inserted for clarity. The words “entered into after June 30, 1954” are omitted as executed.

Editorial Notes

Prior ProvisionsA prior section 4651, Aug. 10, 1956, ch. 1041, 70A Stat. 260; Pub. L. 99–145, title XIII, § 1301(b(3)(C), Nov. 8, 1985, 99 Stat. 736, related to issuance of arms, tentage, and equipment necessary for proper military training to institutions not maintaining units of the Reserve Officers’ Training Corps, prior to repeal by Pub. L. 112–239, div. A, title V, § 552(b), Jan. 2, 2013, 126 Stat. 1741.

Amendments2021—Pub. L. 116–283 renumbered section 2207 of this title as this section. 2011—Subsec. (b). Pub. L. 111–350 substituted “section 134 of title 41” for “section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11))”. 1996—Pub. L. 104–106 designated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

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