
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: 10USC2392]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
            CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS
 
Sec. 2392. Prohibition on use of funds to relieve economic 
        dislocations
        
    (a) In order to help avoid the uneconomic use of Department of 
Defense funds in the procurement of goods and services, the Congress 
finds that it is necessary to prohibit the use of such funds for certain 
purposes.
    (b) No funds appropriated to or for the use of the Department of 
Defense may be used to pay, in connection with any contract awarded by 
the Department of Defense, a price differential for the purpose of 
relieving economic dislocations.

(Added Pub. L. 97-86, title IX, Sec. 913(a)(1), Dec. 1, 1981, 95 Stat. 
1123.)


     Contracts Made by Defense Logistics Agency; Payments of Price 
 Differentials To Relieve Economic Dislocations; Test Program; Interim 
                                 Reports

    Pub. L. 97-252, title XI, Sec. 1109, Sept. 8, 1982, 96 Stat. 746, as 
amended by Pub. L. 98-94, title XII, Sec. 1205, Sept. 24, 1983, 97 Stat. 
683; Pub. L. 98-525, title XII, Sec. 1254, Oct. 19, 1984, 98 Stat. 2611, 
provided that:
    ``(a) The Secretary of Defense should conduct a test program during 
fiscal years 1983, 1984, and 1985 in accordance with this subsection to 
test the effect of exempting certain contracts of the Department of 
Defense from the provisions of section 2392 of title 10, United States 
Code, and paying a price differential under such contracts for the 
purpose of relieving economic dislocations. Under such test program, the 
Secretary of Defense may exempt from the provisions of such section any 
contract (other than a contract for the purchase of fuel) made by the 
Defense Logistics Agency during fiscal years 1983, 1984, and 1985 if the 
contract is to be awarded to an individual or firm located in a Labor 
Surplus Area (as defined and identified by the Department of Labor) and 
if the Secretary determines--
        ``(1) that the awarding of such contract will not adversely 
    affect the national security of the United States;
        ``(2) that there is a reasonable expectation that bids will be 
    received from a sufficient number of responsible bidders so that the 
    award of such contract will be made at reasonable cost to the United 
    States;
        ``(3) that the price differential to be paid under such contract 
    will not exceed 2.2 percent; and
        ``(4) the value of such contract, when added to the cumulative 
    value of all other contracts awarded under the test program 
    authorized by this section, will not exceed $4,000,000,000.
    ``(b) Not later than April 15, 1983, April 15, 1984, and April 15, 
1985 the President shall submit a report to Congress on the 
implementation and results to that date of the test program authorized 
by subsection (a). The report shall include an assessment of the costs 
and benefits of the test program.''
    [Amendment of subsecs. (a) and (b) by Pub. L. 98-525, Sec. 1254(a), 
was made effective Oct. 1, 1984; and amendment of subsec. (a) by Pub. L. 
98-525, Sec. 1254(b), was made effective as of Oct. 1, 1982.]
    Similar provisions were contained in the following prior 
authorization act:
    1982--Dec. 1, 1981, Pub. L. 97-86, title IX, Sec. 913(b), (c), 95 
Stat. 1124.
