
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: 10USC2402]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
            CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS
 
Sec. 2402. Prohibition of contractors limiting subcontractor 
        sales directly to the United States
        
    (a) Each contract for the purchase of supplies or services made by 
the Department of Defense shall provide that the contractor will not--
        (1) enter into any agreement with a subcontractor under the 
    contract that has the effect of unreasonably restricting sales by 
    the subcontractor directly to the United States of any item or 
    process (including computer software) made or furnished by the 
    subcontractor under the contract (or any follow-on production 
    contract); or
        (2) otherwise act to restrict unreasonably the ability of a 
    subcontractor to make sales to the United States described in clause 
    (1).

    (b) This section does not prohibit a contractor from asserting 
rights it otherwise has under law.
    (c) 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))).
    (d)(1) An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under such contract 
that restricts sales by such subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict sales 
by that subcontractor to the United States in violation of the provision 
included in such contract pursuant to subsection (a) if the agreement 
does not result in the United States being treated differently with 
regard to the restriction than any other prospective purchaser of such 
commercial items from that subcontractor.
    (2) In paragraph (1), the term ``commercial item'' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).

(Added Pub. L. 98-525, title XII, Sec. 1234(a), Oct. 19, 1984, 98 Stat. 
2601; amended Pub. L. 103-355, title IV, Sec. 4102(f), title VIII, 
Sec. 8105(g), Oct. 13, 1994, 108 Stat. 3340, 3392.)


                               Amendments

    1994--Subsecs. (c), (d). Pub. L. 103-355 added subsecs. (c) and (d).


                    Effective Date of 1994 Amendment

    For effective date and applicability of amendment by Pub. L. 103-
355, see section 10001 of Pub. L. 103-355, set out as a note under 
section 251 of Title 41, Public Contracts.


                             Effective Date

    Section 1234(c) of Pub. L. 98-525 provided that: ``Section 2402 of 
title 10, United States Code (as added by subsection (a)), shall take 
effect at the end of the 180-day period beginning on the date of the 
enactment of this Act [Oct. 19, 1984].''
