
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: 10USC2636]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                       CHAPTER 157--TRANSPORTATION
 
Sec. 2636. Deductions from amounts due carriers

    (a) Amounts for Loss or Damage.--An amount deducted from an amount 
due a carrier shall be credited as follows:
        (1) If deducted because of loss of or damage to material in 
    transit for a military department, the amount shall be credited to 
    the proper appropriation, account, or fund from which the same or 
    similar material may be replaced.
        (2) If deducted as an administrative offset for an overpayment 
    previously made to the carrier under any Department of Defense 
    contract for transportation services or as liquidated damages due 
    under any such contract, the amount shall be credited to the 
    appropriation or account from which payments for the transportation 
    services were made.

    (b) Simplified Offset for Collection of Claims Not in Excess of the 
Simplified Acquisition Threshold.--(1) In any case in which the total 
amount of a claim for the recovery of overpayments or liquidated damages 
under a contract described in subsection (a)(2) does not exceed the 
simplified acquisition threshold, the Secretary of Defense or the 
Secretary concerned, in exercising the authority to collect the claim by 
administrative offset under section 3716 of title 31, may apply 
paragraphs (2) and (3) of subsection (a) of that section with respect to 
that collection after (rather than before) the claim is so collected.
    (2) Regulations prescribed by the Secretary of Defense under 
subsection (b) of section 3716 of title 31--
        (A) shall include provisions to carry out paragraph (1); and
        (B) shall provide the carrier for a claim subject to paragraph 
    (1) with an opportunity to offer an alternative method of repaying 
    the claim (rather than by administrative offset) if the collection 
    of the claim by administrative offset has not already been made.

    (3) In this subsection, the term ``simplified acquisition 
threshold'' has the meaning given that term in section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).

(Added Pub. L. 97-258, Sec. 2(b)(5)(B), Sept. 13, 1982, 96 Stat. 1053; 
amended Pub. L. 106-398, Sec. 1 [[div. A], title X, Sec. 1009(a)(1)], 
Oct. 30, 2000, 114 Stat. 1654, 1654A-250.)

                                          Historical and Revision Notes
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---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
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---------------------------------
2636..................................  31:489a.                             Ju
ne 25, 1956, ch. 442, Sec.  1, 70
                                                                              S
tat. 336.
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---------------------------------

    The words ``An amount deducted from an amount due'' are substituted 
for ``Moneys arising from deductions made from'' for clarity. The words 
``military or naval'' and ``account of'' are omitted as surplus. The 
words ``a military department'' are substituted for ``the Departments of 
the Army, Navy, or Air Force'' because of 10:101(7). The Department of 
War was designated the Department of the Army by section 205(a) of the 
Act of July 26, 1947 (ch. 343, 61 Stat. 501), and by sections 1 and 53 
of the Act of August 10, 1956 (ch. 1041, 70A Stat. 157, 676). The 
Department of the Air Force is included because of sections 205(a) and 
207(a) and (f) of the Act of July 26, 1947 (ch. 343, 61 Stat. 501, 502), 
and section 1 of the Act of August 10, 1956 (ch. 1041, 70A Stat. 488).


                               Amendments

    2000--Pub. L. 106-398 amended section catchline and text generally. 
Prior to amendment, text read as follows: ``An amount deducted from an 
amount due a carrier because of loss of or damage to material in transit 
for a military department shall be credited to the proper appropriation, 
account, or fund from which the same or similar material may be 
replaced.''


                    Effective Date of 2000 Amendment

    Pub. L. 106-398, Sec. 1 [[div. A], title X, Sec. 1009(b)], Oct. 30, 
2000, 114 Stat. 1654, 1654A-251, provided that: ``Subsections (a)(2) and 
(b) of section 2636 of title 10, United States Code, as added by 
subsection (a)(1), shall apply with respect to contracts entered into 
after the date of the enactment of this Act [Oct. 30, 2000].''
