
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 1048(b)(2)]
[Document affected by Public Law 107-107 Section 835(a)]
[Document affected by Public Law 107-107 Section 835(b)]
[CITE: 10USC2534]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
 CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
                  REINVESTMENT, AND DEFENSE CONVERSION
 
    SUBCHAPTER V--MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS
 
Sec. 2534. Miscellaneous limitations on the procurement of goods 
        other than United States goods
        
    (a) Limitation on Certain Procurements.--The Secretary of Defense 
may procure any of the following items only if the manufacturer of the 
item satisfies the requirements of subsection (b):
        (1) Buses.--Multipassenger motor vehicles (buses).
        (2) Chemical weapons antidote.--Chemical weapons antidote 
    contained in automatic injectors (and components for such 
    injectors).
        (3) Components for naval vessels.--(A) The following components:
            (i) Air circuit breakers.
            (ii) Welded shipboard anchor and mooring chain with a 
        diameter of four inches or less.
            (iii) Vessel propellers with a diameter of six feet or more.

        (B) The following components of vessels, to the extent they are 
    unique to marine applications: gyrocompasses, electronic navigation 
    chart systems, steering controls, pumps, propulsion and machinery 
    control systems, and totally enclosed lifeboats.
        (4) Valves and machine tools.--Items in the following 
    categories:
            (A) Powered and non-powered valves in Federal Supply Classes 
        4810 and 4820 used in piping for naval surface ships and 
        submarines.
            (B) Machine tools in the Federal Supply Classes for metal-
        working machinery numbered 3405, 3408, 3410 through 3419, 3426, 
        3433, 3438, 3441 through 3443, 3445, 3446, 3448, 3449, 3460, and 
        3461.

        (5) Ball bearings and roller bearings.--Ball bearings and roller 
    bearings, in accordance with subpart 225.71 of part 225 of the 
    Defense Federal Acquisition Regulation Supplement, as in effect on 
    October 23, 1992.

    (b) Manufacturer in the National Technology and Industrial Base.--
        (1) General requirement.--A manufacturer meets the requirements 
    of this subsection if the manufacturer is part of the national 
    technology and industrial base.
        (2) Manufacturers of chemical weapons antidote.--In the case of 
    a procurement of chemical weapons antidote referred to in subsection 
    (a)(2), a manufacturer meets the requirements of this subsection 
    only if the manufacturer--
            (A) meets the requirement set forth in paragraph (1);
            (B) is an existing producer under the industrial 
        preparedness program at the time the contract is awarded;
            (C) has received all required regulatory approvals; and
            (D) when the contract for the procurement is awarded, has in 
        existence in the national technology and industrial base the 
        plant, equipment, and personnel necessary to perform the 
        contract.

        (3) Manufacturer of vessel propellers.--In the case of a 
    procurement of vessel propellers referred to in subsection 
    (a)(3)(A)(iii), the manufacturer of the propellers meets the 
    requirements of this subsection only if--
            (A) the manufacturer meets the requirements set forth in 
        paragraph (1); and
            (B) all castings incorporated into such propellers are 
        poured and finished in the United States.

    (c) Applicability to Certain Items.--
        (1) Components for naval vessels.--Subsection (a) does not apply 
    to a procurement of spare or repair parts needed to support 
    components for naval vessels produced or manufactured outside the 
    United States.
        (2) Valves and machine tools.--(A) Contracts to which subsection 
    (a) applies include the following contracts for the procurement of 
    items described in paragraph (4) of such subsection:
            (i) A contract for procurement of such an item for use in 
        property under the control of the Department of Defense, 
        including any Government-owned, contractor-operated facility.
            (ii) A contract that is entered into by a contractor on 
        behalf of the Department of Defense for the purpose of providing 
        such an item to another contractor as Government-furnished 
        equipment.

        (B) In any case in which a contract for items described in 
    subsection (a)(4) includes the procurement of more than one Federal 
    Supply Class of machine tools or machine tools and accessories, each 
    supply class shall be evaluated separately for purposes of 
    determining whether the limitation in subsection (a) applies.
        (C) Subsection (a)(4) and this paragraph shall cease to be 
    effective on October 1, 1996.
        (3) Ball bearings and roller bearings.--Subsection (a)(5) and 
    this paragraph shall cease to be effective on October 1, 2005.
        (4) Vessel propellers.--Subsection (a)(3)(A)(iii) and this 
    paragraph shall cease to be effective on February 10, 1998.

    (d) Waiver Authority.--The Secretary of Defense may waive the 
limitation in subsection (a) with respect to the procurement of an item 
listed in that subsection if the Secretary determines that any of the 
following apply:
        (1) Application of the limitation would cause unreasonable costs 
    or delays to be incurred.
        (2) United States producers of the item would not be jeopardized 
    by competition from a foreign country, and that country does not 
    discriminate against defense items produced in the United States to 
    a greater degree than the United States discriminates against 
    defense items produced in that country.
        (3) Application of the limitation would impede cooperative 
    programs entered into between the Department of Defense and a 
    foreign country, or would impede the reciprocal procurement of 
    defense items under a memorandum of understanding providing for 
    reciprocal procurement of defense items that is entered into under 
    section 2531 of this title, and that country does not discriminate 
    against defense items produced in the United States to a greater 
    degree than the United States discriminates against defense items 
    produced in that country.
        (4) Satisfactory quality items manufactured by an entity that is 
    part of the national technology and industrial base (as defined in 
    section 2500(1) of this title) are not available.
        (5) Application of the limitation would result in the existence 
    of only one source for the item that is an entity that is part of 
    the national technology and industrial base (as defined in section 
    2500(1) of this title).
        (6) The procurement is for an amount less than the simplified 
    acquisition threshold and simplified purchase procedures are being 
    used.
        (7) Application of the limitation is not in the national 
    security interests of the United States.
        (8) Application of the limitation would adversely affect a 
    United States company.

    (e) Sonobuoys.--
        (1) Limitation.--The Secretary of Defense may not procure a 
    sonobuoy manufactured in a foreign country if United States firms 
    that manufacture sonobuoys are not permitted to compete on an equal 
    basis with foreign manufacturing firms for the sale of sonobuoys in 
    that foreign country.
        (2) Waiver authority.--The Secretary may waive the limitation in 
    paragraph (1) with respect to a particular procurement of sonobuoys 
    if the Secretary determines that such procurement is in the national 
    security interests of the United States.
        (3) Definition.--In this subsection, the term ``United States 
    firm'' has the meaning given such term in section 2532(d)(1) of this 
    title.

    (f) Principle of Construction With Future Laws.--A provision of law 
may not be construed as modifying or superseding the provisions of this 
section, or as requiring funds to be limited, or made available, by the 
Secretary of Defense to a particular domestic source by contract, unless 
that provision of law--
        (1) specifically refers to this section;
        (2) specifically states that such provision of law modifies or 
    supersedes the provisions of this section; and
        (3) specifically identifies the particular domestic source 
    involved and states that the contract to be awarded pursuant to such 
    provision of law is being awarded in contravention of this section.

    (g) Inapplicability to Contracts under Simplified Acquisition 
Threshold.--(1) This section does not apply to a contract or subcontract 
for an amount that does not exceed the simplified acquisition threshold.
    (2) Paragraph (1) does not apply to contracts for items described in 
subsection (a)(5) (relating to ball bearings and roller bearings), 
notwithstanding section 33 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 429).
    (h) Implementation of Naval Vessel Component Limitation.--In 
implementing subsection (a)(3)(B), the Secretary of Defense--
        (1) may not use contract clauses or certifications; and
        (2) shall use management and oversight techniques that achieve 
    the objective of the subsection without imposing a significant 
    management burden on the Government or the contractor involved.

    (i) Implementation of Certain Waiver Authority.--(1) The Secretary 
of Defense may exercise the waiver authority described in paragraph (2) 
only if the waiver is made for a particular item listed in subsection 
(a) and for a particular foreign country.
    (2) This subsection applies to the waiver authority provided by 
subsection (d) on the basis of the applicability of paragraph (2) or (3) 
of that subsection.
    (3) The waiver authority described in paragraph (2) may not be 
delegated below the Under Secretary of Defense for Acquisition, 
Technology, and Logistics.
    (4) At least 15 days before the effective date of any waiver made 
under the waiver authority described in paragraph (2), the Secretary 
shall publish in the Federal Register and submit to the congressional 
defense committees a notice of the determination to exercise the waiver 
authority.
    (5) Any waiver made by the Secretary under the waiver authority 
described in paragraph (2) shall be in effect for a period not greater 
than one year, as determined by the Secretary.

(Added Pub. L. 97-295, Sec. 1(29)(A), Oct. 12, 1982, 96 Stat. 1294, 
Sec. 2400; amended Pub. L. 100-180, div. A, title I, Sec. 124(a), 
(b)(1), title VIII, Sec. 824(a), Dec. 4, 1987, 101 Stat. 1042, 1043, 
1134; renumbered Sec. 2502 and amended Pub. L. 100-370, Sec. 3(b)(1), 
July 19, 1988, 102 Stat. 855; renumbered Sec. 2507 and amended Pub. L. 
100-456, div. A, title VIII, Secs. 821(b)(1)(A), 822, Sept. 29, 1988, 
102 Stat. 2014, 2017; Pub. L. 101-510, div. A, title VIII, Sec. 835(a), 
title XIV, Sec. 1421, Nov. 5, 1990, 104 Stat. 1614, 1682; Pub. L. 102-
190, div. A, title VIII, Secs. 834, 835, Dec. 5, 1991, 105 Stat. 1447, 
1448; renumbered Sec. 2534 and amended Pub. L. 102-484, div. A, title 
VIII, Secs. 831, 833(a), title X, Sec. 1052(33), div. D, title XLII, 
Secs. 4202(a), 4271(b)(4), Oct. 23, 1992, 106 Stat. 2460, 2461, 2501, 
2659, 2696; Pub. L. 103-160, div. A, title IX, Sec. 904(d)(1), Nov. 30, 
1993, 107 Stat. 1728; Pub. L. 103-337, div. A, title VIII, Sec. 814, 
Oct. 5, 1994, 108 Stat. 2817; Pub. L. 103-355, title IV, Sec. 4102(i), 
Oct. 13, 1994, 108 Stat. 3341; Pub. L. 104-106, div. A, title VIII, 
Sec. 806(a)(1)-(4), (b)-(d), title XV, Sec. 1503(a)(30), Feb. 10, 1996, 
110 Stat. 390, 391, 512; Pub. L. 104-201, div. A, title VIII, Sec. 810, 
title X, Sec. 1074(a)(14), Sept. 23, 1996, 110 Stat. 2608, 2659; Pub. L. 
105-85, div. A, title III, Sec. 371(d)(1), title VIII, Sec. 811(a), 
title X, Sec. 1073(a)(55), Nov. 18, 1997, 111 Stat. 1706, 1839, 1903; 
Pub. L. 106-65, div. A, title IX, Sec. 911(a)(1), Oct. 5, 1999, 113 
Stat. 717; Pub. L. 106-398, Sec. 1 [[div. A], title VIII, Sec. 805], 
Oct. 30, 2000, 114 Stat. 1654, 1654A-207.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
2400..................................  10:2303 (note).                      Se
pt. 20, 1968, Pub. L. 90-500,
                                                                              S
ec.  404, 82 Stat. 851.
-------------------------------------------------------------------------------
---------------------------------

    The words ``of the United States under the provisions of this Act or 
the provisions of any other law'' are omitted as surplus. The word 
``acquisition'' is substituted for ``purchase, lease, rental, or other 
acquisition'' because it is inclusive. The words ``this section'' are 
substituted for ``this prohibition'' because of the restatement.


                               Amendments

    2000--Subsec. (c)(3). Pub. L. 106-398 substituted ``October 1, 
2005'' for ``October 1, 2000''.
    1999--Subsec. (i)(3). Pub. L. 106-65 substituted ``Under Secretary 
of Defense for Acquisition, Technology, and Logistics'' for ``Under 
Secretary of Defense for Acquisition and Technology''.
    1997--Subsec. (b)(3). Pub. L. 105-85, Sec. 1073(a)(55), substituted 
``(a)(3)(A)(iii)'' for ``(a)(3)(A)(ii)''.
    Subsec. (d)(4), (5). Pub. L. 105-85, Sec. 371(d)(1), substituted 
``section 2500(1)'' for ``section 2491(1)''.
    Subsec. (i). Pub. L. 105-85, Sec. 811(a), added subsec. (i).
    1996--Subsec. (a)(3). Pub. L. 104-106, Sec. 806(a)(1), amended par. 
(3) generally. Prior to amendment, par. (3) read as follows: ``Air 
circuit breakers.--Air circuit breakers for naval vessels.''
    Subsec. (b)(3). Pub. L. 104-106, Sec. 806(a)(2), added par. (3).
    Subsec. (c). Pub. L. 104-106, Sec. 1503(a)(30), substituted 
``Certain Items'' for ``certain items'' in heading.
    Subsec. (c)(1). Pub. L. 104-106, Sec. 806(a)(3), amended par. (1) 
generally. Prior to amendment, par. (1) read as follows: ``Air circuit 
breakers.--Subsection (a) does not apply to a procurement of spares or 
repair parts needed to support air circuit breakers produced or 
manufactured outside the United States.''
    Subsec. (c)(3). Pub. L. 104-106, Sec. 806(b), substituted ``October 
1, 2000'' for ``October 1, 1995''.
    Subsec. (c)(4). Pub. L. 104-201, Sec. 1074(a)(14), substituted 
``February 10, 1998'' for ``the date occurring two years after the date 
of the enactment of the National Defense Authorization Act for Fiscal 
Year 1996''.
    Pub. L. 104-106, Sec. 806(c), added par. (4).
    Subsec. (d)(3). Pub. L. 104-201, Sec. 810, inserted ``or would 
impede the reciprocal procurement of defense items under a memorandum of 
understanding providing for reciprocal procurement of defense items that 
is entered into under section 2531 of this title,'' after ``a foreign 
country,''.
    Subsec. (g). Pub. L. 104-106, Sec. 806(d), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (h). Pub. L. 104-106, Sec. 806(a)(4), added subsec. (h).
    1994--Pub. L. 103-337 amended section generally. Prior to amendment, 
section consisted of subsecs. (a) to (f) relating to acquisition of 
multipassenger motor vehicles, chemical weapons antidote, valves and 
machine tools, carbonyl iron powders, air circuit breakers, and 
sonobuoys.
    Subsec. (g). Pub. L. 103-355 added subsec. (g).
    1993--Subsec. (b)(2). Pub. L. 103-160 substituted ``Under Secretary 
of Defense for Acquisition and Technology'' for ``Under Secretary of 
Defense for Acquisition''.
    1992--Pub. L. 102-484, Secs. 4202(a), 4271(b)(4), renumbered section 
2507 of this title as this section and substituted ``Miscellaneous 
limitations on the procurement of goods other than United States goods'' 
for ``Miscellaneous procurement limitations'' in section catchline.
    Subsec. (c). Pub. L. 102-484, Sec. 831, redesignated subsec. (d) as 
(c) and struck out former subsec. (c) which read as follows: ``Manual 
Typewriters From Warsaw Pact Countries.--Funds appropriated to or for 
the use of the Department of Defense may not be used for the procurement 
of manual typewriters which contain one or more components manufactured 
in a country which is a member of the Warsaw Pact unless the products of 
that country are accorded nondiscriminatory treatment (most-favored-
nation treatment).''
    Subsec. (d). Pub. L. 102-484, Sec. 831(b), redesignated subsec. (e) 
as (d). Former subsec. (d) redesignated (c).
    Subsec. (d)(3)(A). Pub. L. 102-484, Sec. 1052(33), substituted 
``Government-owned'' for ``government-owned''.
    Subsec. (e). Pub. L. 102-484, Sec. 831(b), redesignated subsec. (f) 
as (e). Former subsec. (e) redesignated (d).
    Subsec. (f). Pub. L. 102-484, Sec. 833(a), added subsec. (f). Former 
subsec. (f) redesignated (e).
    1991--Subsec. (d)(1). Pub. L. 102-190, Sec. 834(a), substituted 
``Effective through fiscal year 1996'' for ``During fiscal years 1989, 
1990, and 1991''.
    Subsec. (d)(3) to (5). Pub. L. 102-190, Sec. 834(b), added pars. (3) 
and (4), redesignated former par. (3) as (5), and struck out former par. 
(4) which read as follows: ``The provisions of this section may be 
renewed with respect to any item by the Secretary of Defense at the end 
of fiscal year 1991 for an additional two fiscal years if the Secretary 
determines that a continued restriction on that item is in the national 
security interest.''
    Subsec. (e)(1). Pub. L. 102-190, Sec. 835(1), substituted ``Until 
January 1, 1993, the Secretary'' for ``The Secretary''.
    Subsec. (e)(3). Pub. L. 102-190, Sec. 835(2), (4), redesignated par. 
(4) as (3) and struck out former par. (3) which read as follows: ``After 
September 30, 1994, the Secretary may terminate the restriction required 
under paragraph (1) if the Secretary determines that continuing the 
restriction is not in the national interest.''
    Subsec. (e)(3)(A). Pub. L. 102-190, Sec. 835(3), struck out before 
period ``by an entity more than 50 percent of which is owned or 
controlled by citizens of the United States or Canada''.
    Subsec. (e)(4). Pub. L. 102-190, Sec. 835(4), redesignated par. (4) 
as (3).
    1990--Subsec. (e). Pub. L. 101-510, Sec. 835(a), added subsec. (e).
    Subsec. (f). Pub. L. 101-510, Sec. 1421, added subsec. (f).
    1988--Pub. L. 100-370, and Pub. L. 100-456, Sec. 821(b)(1)(A), 
successively renumbered section 2400 of this title as section 2502 of 
this title and then as this section.
    Subsec. (a). Pub. L. 100-370 substituted ``this subsection'' for 
``this section''.
    Subsec. (d). Pub. L. 100-456, Sec. 822, added subsec. (d).
    1987--Pub. L. 100-180 substituted ``Miscellaneous procurement 
limitations'' for ``Limitation on procurement of buses'' in section 
catchline, designated existing provisions as subsec. (a) and added 
heading, and added subsecs. (b) and (c).


                    Effective Date of 1997 Amendment

    Section 811(b) of Pub. L. 105-85 provided that: ``Subsection (i) of 
section 2534 of such title [10 U.S.C. 2534(i)], as added by subsection 
(a), shall apply with respect to--
        ``(1) contracts and subcontracts entered into on or after the 
    date of the enactment of this Act [Nov. 18, 1997]; and
        ``(2) options for the procurement of items that are exercised 
    after such date under contracts that are entered into before such 
    date if the option prices are adjusted for any reason other than the 
    application of a waiver granted under subsection (d) of such section 
    2534, on the basis of the applicability of paragraph (2) or (3) of 
    that subsection.''


                    Effective Date of 1996 Amendment

    Section 806(a)(5) of Pub. L. 104-106 provided that: ``Subsection 
(a)(3)(B) of section 2534 of title 10, United States Code, as amended by 
paragraph (1), shall apply only to contracts entered into after March 
31, 1996.''


                    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 of 1992 Amendment

    Section 833(b) of Pub. L. 102-484 provided that: ``Subsection (f) of 
section 2534 of title 10, United States Code, as added by subsection 
(a), shall apply with respect to solicitations for contracts issued 
after the expiration of the 120-day period beginning on the date of the 
enactment of this Act [Oct. 23, 1992].''


                    Effective Date of 1990 Amendment

    Section 835(b) of Pub. L. 101-510 provided that subsec. (e) of this 
section, as added by section 835(a) of Pub. L. 101-510, applied with 
respect to systems or items procured by or provided to Department of 
Defense after Nov. 5, 1990.
