
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 811(a)(2)]
[Document affected by Public Law 107-107 Section 834(a)(2)]
[CITE: 10USC2381]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
            CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS
 
Sec. 2381. Contracts: regulations for bids

    (a) The Secretary of Defense may--
        (1) prescribe regulations for the preparation, submission, and 
    opening of bids for contracts; and
        (2) require that a bid be accompanied by a written guaranty, 
    signed by one or more responsible persons, undertaking that the 
    bidder, if his bid is accepted, will, within the time prescribed by 
    the Secretary or other officer authorized to make the contract, make 
    a contract and furnish a bond with good and sufficient sureties for 
    the performance of the contract.

    (b) If a bidder, after being notified of the acceptance of his bid, 
fails within the time prescribed under subsection (a)(2) to enter into a 
contract and furnish the prescribed bond, the Secretary concerned or 
other authorized officer shall--
        (1) contract with another person; and
        (2) charge against the defaulting bidder and his guarantors the 
    difference between the amount specified by the bidder in his bid and 
    the amount for which a contract is made with the other person, this 
    difference being immediately recoverable by the United States for 
    the use of the military department concerned in an action against 
    the bidder and his guarantors, jointly or severally.

    (c) Proceedings under this section are subject to regulations under 
section 205 of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 486), unless exempted therefrom under section 201(a) of 
that Act (40 U.S.C. 481(a)).

(Aug. 10, 1956, ch. 1041, 70A Stat. 136; Pub. L. 98-525, title XIV, 
Sec. 1405(35), Oct. 19, 1984, 98 Stat. 2624; Pub. L. 103-355, title I, 
Sec. 1507, Oct. 13, 1994, 108 Stat. 3298.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
2381(a)...............................  5:218 (1st sentence, less 1st 16     Ap
r. 10, 1878, ch. 58, 20 Stat. 36;
                                         words; and 2d sentence).             M
ar. 3, 1883, ch. 120, 22 Stat.
                                        5:218 (less 1st and 2d sentences).    4
87; Oct. 31, 1951, ch. 654, Sec.
2381(b)...............................                                        2
(4), 65 Stat. 706.
2381(c)...............................  5:218 (1st 16 words of 1st           Fe
b. 19, 1948, ch. 65, Sec.  12
                                         sentence) [applicability of 5:218    (
1st sentence), 62 Stat. 26.
                                         extended to Navy by 5:412b and
                                         41:161 (1st sentence)].
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a)(1), the word ``may'' is substituted for the words 
``is authorized to''. The words ``rules and * * * to be observed'' are 
omitted as surplusage.
    In subsection (a)(2), the word ``undertaking'' is substituted for 
the words ``to the effect that he or they undertake''. The words ``make 
a contract'' are inserted for clarity. The words ``in the premises'' are 
omitted as surplusage. The words ``for the performance of the contract'' 
are substituted for the words ``to furnish the supplies proposed or to 
perform the service required''.
    In subsection (b), the word ``duly'' is omitted as surplusage. The 
words ``with good and sufficient security for the proper fulfillment of 
its terms'' are omitted as covered by subsection (a)(2). The words ``the 
prescribed'' are inserted before the word ``bond''.
    Subsection (b)(1) is substituted for the words ``proceed to contract 
with some other person to furnish the supplies or perform the services 
required''.
    In subsection (b)(2) the word ``charge'' is substituted for the 
words ``forthwith cause * * * to be charged''. The words ``a contract is 
made with the other person'' are substituted for the words ``he may have 
contracted with another party to furnish the supplies or perform the 
service for the whole period of the proposal''. The words ``guarantor 
or'' are omitted as surplusage. The words ``this difference being'' are 
substituted for the words ``and the sum may be''. The words ``of debt'' 
are omitted, since that action no longer exists. The words ``the bidder 
and his guarantors, jointly or severally'' are substituted for the words 
``either or all of such persons''.
    In subsection (c), the words ``Proceedings under this section are'' 
are inserted for clarity. The words ``unless exempted therefrom under 
section 481(a) of that title'' are inserted to preserve the possibility 
of exemption of proceedings under the revised section from the 
provisions of the Federal Property and Administrative Services Act of 
1949, as amended.


                               Amendments

    1994--Subsec. (a). Pub. L. 103-355 substituted ``The Secretary of 
Defense may--
        ``(1) prescribe regulations for the preparation, submission, and 
    opening of bids for contracts; and''
for ``The Secretary of a military department may--
        ``(1) prescribe regulations for the preparation, submission, and 
    opening of bids for contracts with that department; and''.
    1984--Subsec. (c). Pub. L. 98-525 substituted ``section 205 of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
486)'' for ``section 486 of title 40'' and ``section 201(a) of that Act 
(40 U.S.C. 481(a))'' for ``section 481(a) of this title''.
