
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: 10USC2404]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
            CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS
 
Sec. 2404. Acquisition of certain fuel sources: authority to 
        waive contract procedures; acquisition by exchange; sales 
        authority
        
    (a) Waiver Authority.--The Secretary of Defense may, for any 
purchase of a defined fuel source, waive the application of any 
provision of law prescribing procedures to be followed in the formation 
of contracts, prescribing terms and conditions to be included in 
contracts, or regulating the performance of contracts if the Secretary 
determines--
        (1) that market conditions for the defined fuel source have 
    adversely affected (or will in the near future adversely affect) the 
    acquisition of that defined fuel source by the Department of 
    Defense; and
        (2) the waiver will expedite or facilitate the acquisition of 
    that defined fuel source for Government needs.

    (b) Scope of Waiver.--A waiver under subsection (a) may be made with 
respect to a particular contract or with respect to classes of 
contracts. Such a waiver that is applicable to a contract for the 
purchase of a defined fuel source may also be made applicable to a 
subcontract under that contract.
    (c) Exchange Authority.--The Secretary of Defense may acquire a 
defined fuel source or services related to a defined fuel source by 
exchange of a defined fuel source or services related to a defined fuel 
source.
    (d) Authority To Sell.--The Secretary of Defense may sell a defined 
fuel source of the Department of Defense if the Secretary determines 
that the sale would be in the public interest. The proceeds of such a 
sale shall be credited to appropriations of the Department of Defense 
for the acquisition of a defined fuel source or services related to a 
defined fuel source. Amounts so credited shall be available for 
obligation for the same period as the appropriations to which the 
amounts are credited.
    (e) Petroleum Defined.--In this section, the term ``petroleum'' 
means natural or synthetic crude, blends of natural or synthetic crude, 
and products refined or derived from natural or synthetic crude or from 
such blends.
    (f) Defined Fuel Sources.--In this section, the term ``defined fuel 
source'' means any of the following:
        (1) Petroleum.
        (2) Natural gas.
        (3) Coal.
        (4) Coke.

(Added Pub. L. 98-525, title XII, Sec. 1234(a), Oct. 19, 1984, 98 Stat. 
2604; amended Pub. L. 100-26, Sec. 7(k)(3), Apr. 21, 1987, 101 Stat. 
284; Pub. L. 101-510, div. A, title XIII, Sec. 1322(a)(8), Nov. 5, 1990, 
104 Stat. 1671; Pub. L. 103-160, div. A, title VIII, Sec. 826, Nov. 30, 
1993, 107 Stat. 1711; Pub. L. 106-65, div. A, title VIII, Sec. 803(a), 
(b)(1), Oct. 5, 1999, 113 Stat. 703.)


                               Amendments

    1999--Pub. L. 106-65, Sec. 803(b)(1), substituted ``Acquisition of 
certain fuel sources'' for ``Acquisition of petroleum and natural gas'' 
in section catchline.
    Subsec. (a). Pub. L. 106-65, Sec. 803(a)(1), substituted ``a defined 
fuel source'' for ``petroleum or natural gas'' in introductory 
provisions, ``market conditions for the defined fuel source'' for 
``petroleum market conditions or natural gas market conditions, as the 
case may be,'' and ``acquisition of that defined fuel source'' for 
``acquisition of petroleum or acquisition of natural gas, 
respectively,'' in par. (1), and ``that defined fuel source'' for 
``petroleum or natural gas, as the case may be,'' in par. (2).
    Subsec. (b). Pub. L. 106-65, Sec. 803(a)(2), substituted ``a defined 
fuel source'' for ``petroleum or natural gas'' in second sentence.
    Subsec. (c). Pub. L. 106-65, Sec. 803(a)(3), which directed the 
substitution of ``a defined fuel source or services related to a defined 
fuel source by exchange of a defined fuel source or services related to 
a defined fuel source.'' for `` `petroleum' and all that follows through 
the period'', was executed by substituting the material for ``petroleum, 
petroleum-related services, natural gas, or natural gas-related services 
by exchange of petroleum, petroleum-related services, natural gas, or 
natural gas-related services.'' to reflect the probable intent of 
Congress.
    Subsec. (d). Pub. L. 106-65, Sec. 803(a)(4), substituted ``a defined 
fuel source'' for ``petroleum or natural gas'' in first sentence and ``a 
defined fuel source or services related to a defined fuel source.'' for 
``petroleum, petroleum-related services, natural gas, or natural gas-
related services.'' in second sentence.
    Subsec. (f). Pub. L. 106-65, Sec. 803(a)(5), added subsec. (f).
    1993--Pub. L. 103-160, Sec. 826(d)(2), substituted ``petroleum and 
natural gas: authority to waive contract procedures; acquisition by 
exchange; sales authority'' for ``petroleum: authority to waive contract 
procedures'' as section catchline.
    Subsec. (a). Pub. L. 103-160, Sec. 826(a)(1), (d)(1)(A), inserted 
heading, inserted ``or natural gas'' after ``petroleum'' in introductory 
provisions, inserted ``or natural gas market conditions, as the case may 
be,'' after ``petroleum market conditions'' and ``or acquisition of 
natural gas, respectively,'' after ``acquisition of petroleum'' in par. 
(1), and inserted ``or natural gas, as the case may be,'' after 
``petroleum'' in par. (2).
    Subsec. (b). Pub. L. 103-160, Sec. 826(a)(2), (d)(1)(B), inserted 
heading and inserted ``or natural gas'' after ``petroleum'' in second 
sentence.
    Subsec. (c). Pub. L. 103-160, Sec. 826(b), amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows: ``The 
Secretary of Defense may acquire petroleum by exchange of petroleum or 
petroleum derivatives.''
    Subsec. (d). Pub. L. 103-160, Sec. 826(c)(2), added subsec. (d). 
Former subsec. (d) redesignated (e).
    Subsec. (e). Pub. L. 103-160, Sec. 826(c)(1), (d)(1)(C), 
redesignated subsec. (d) as (e) and inserted heading.
    1990--Subsecs. (d), (e). Pub. L. 101-510 redesignated subsec. (e) as 
(d) and struck out former subsec. (d) which read as follows: ``The 
Secretary of Defense shall notify the Congress within 10 days of the 
date on which any waiver is made under this section and of the reasons 
for the necessity of exercising such waiver.''
    1987--Subsec. (e). Pub. L. 100-26 inserted ``the term'' after ``In 
this section,''.
