
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2207]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                 CHAPTER 131--PLANNING AND COORDINATION
 
Sec. 2207. Expenditure of appropriations: limitation

    (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 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(11))).

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76 Stat. 
520; amended Pub. L. 104-106, div. A, title VIII, Sec. 801, Feb. 10, 
1996, 110 Stat. 389.)

                                          Historical and Revision Notes
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---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
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2207..................................  5:174d.                              Ju
ne 30, 1954, ch. 432, Sec.  719,
                                                                              6
8 Stat. 353.
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    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.


                               Amendments

    1996--Pub. L. 104-106 designated existing provisions as subsec. (a) 
and added subsec. (b).

                  Section Referred to in Other Sections

    This section is referred to in section 2343 of this title.
