Statutes, codes, and regulations
United States Code
Title 10 - ARMED FORCESSubtitle A - GENERAL MILITARY LAWPart V - ACQUISITIONSubpart D - GENERAL CONTRACTING PROVISIONS
Chapter 281 - CLAIMS AND DISPUTES
Section 3863 - Retention of amounts collected from contractor during the pendency of contract dispute

10 U.S.C. § 3863

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Current through P.L. 118-107 (published on www.congress.gov on 11/21/2024)
Section 3863 - Retention of amounts collected from contractor during the pendency of contract dispute
(a) RETENTION OF FUNDS.-Notwithstanding sections 1552(a) and 3302(b) of title 31, any amount, including interest, collected from a contractor as a result of a claim made by a military department or Defense Agency under chapter 71 of title 41, shall remain available in accordance with this section to pay-
(1) any settlement of the claim by the parties;
(2) any judgment rendered in the contractor's favor on an appeal of the decision on that claim to the Armed Services Board of Contract Appeals under section 7104(a) of title 41; or
(3) any judgment rendered in the contractor's favor in an action on that claim in a court of the United States.
(b) PERIOD OF AVAILABILITY.-
(1) The period of availability of an amount under subsection (a), in connection with a claim-
(A) expires 180 days after the expiration of the period for bringing an action on that claim in the United States Court of Federal Claims under section 7104(b) of title 41 if, within that 180-day period-
(i) no appeal on the claim is commenced at the Armed Services Board of Contract Appeals under section 7104(a) of such title; and
(ii) no action on the claim is commenced in a court of the United States; or
(B) if not expiring under subparagraph (A), expires-
(i) in the case of a settlement of the claim, 180 days after the date of the settlement; or
(ii) in the case of a judgment rendered on the claim in an appeal to the Armed Services Board of Contract Appeals under section 7104(a) of title 41 or an action in a court of the United States, 180 days after the date on which the judgment becomes final and not appealable.
(2) While available under this section, an amount may be obligated or expended only for a purpose described in subsection (a).
(3) Upon the expiration of the period of availability of an amount under paragraph (1), the amount shall be covered into the Treasury as miscellaneous receipts.

10 U.S.C. § 3863

Added Pub. L. 105-85, div. A, title VIII, §831(a), Nov. 18, 1997, 111 Stat. 1841, §2410m; amended Pub. L. 108-136, div. A, title X, §1031(a)(21), Nov. 24, 2003, 117 Stat. 1598; Pub. L. 111-350, §5(b) (32), Jan. 4, 2011, 124 Stat. 3845; Pub. L. 112-81, div. A, title X, §1061(15), Dec. 31, 2011, 125 Stat. 1583; Pub. L. 113-291, div. A, title X, §1071(a)(8), Dec. 19, 2014, 128 Stat. 3504; renumbered §3863, Pub. L. 116-283, div. A, title XVIII, §1836(b), Jan. 1, 2021, 134 Stat. 4241.

EDITORIAL NOTES

PRIOR PROVISIONSPrior sections 3881 and 3882 were repealed by Pub. L. 85-155, title IV, §401(1), Aug. 21, 1957, 71 Stat. 390.Section 3881, act Aug. 10, 1956, ch. 1041, 70A Stat. 222, authorized Secretary of the Army to retire regular commissioned officers of Army Nurse Corps or Women's Medical Specialist Corps whose regular grade is below major.Section 3882, act Aug. 10, 1956, ch. 1041, 70A Stat. 222, authorized Secretary of the Army to retire regular commissioned officers of Army Nurse Corps or Women's Medical Specialist Corps whose regular grade is above captain.Prior sections 3883 to 3886 were repealed by Pub. L. 96-513, title II, §216, title VII, §701, Dec. 12, 1980, 94 Stat. 2886, 2955, effective Sept. 15, 1981.Section 3883, acts Aug. 10, 1956, ch. 1041, 70A Stat. 222; Aug. 6, 1958, Pub. L. 85-600, §1(6), 72 Stat. 522; Nov. 2, 1966, Pub. L. 89-718, §3, 80 Stat. 1115; Oct. 30, 1978, Pub. L. 95-551, §2, 92 Stat. 2069, provided that, unless retired or separated at an earlier date, each commissioned officer whose regular grade is below major general, other than a professor or the director of admissions of the United States Military Academy, be retired when he becomes 60 years of age, except as provided by section 8301 of title 5. See section 1251 of this title.Section 3884, acts Aug. 10, 1956, ch. 1041, 70A Stat. 222; Nov. 2, 1966, Pub. L. 89-718, §3, 80 Stat. 1115, provided that, unless retired or separated at an earlier date, each commissioned officer whose regular grade is major general, and whose retirement under section 3923 of this title has been deferred under cl. (1) of that section, be retired when he becomes 60 years of age, except as provided by section 8301 of title 5. See section 1251 of this title. Section 3885, acts Aug. 10, 1956, ch. 1041, 70A Stat. 222; Nov. 2, 1966, Pub. L. 89-718, §3, 80 Stat. 1115, provided that, unless retired or separated at an earlier date or unless retained under section 3923(2) of this title, each commissioned officer whose regular grade is major general be retired when he becomes 62 years of age, except as provided by section 8301 of title 5. See section 1251 of this title.Section 3886, acts Aug. 10, 1956, ch. 1041, 70A Stat. 222; Aug. 6, 1958, Pub. L. 85-600, §1(7), 72 Stat. 522; Nov. 2, 1966, Pub. L. 89-718, §3, 80 Stat. 1115; Oct. 30, 1978, Pub. L. 95-551, §2, 92 Stat. 2069, provided that, unless retired or separated at an earlier date, each commissioned officer whose regular grade is major general, and whose retirement under section 3923 of this title has been deferred under cl. (2) of that section, and each permanent professor and the director of admissions of the United States Military Academy, be retired when he becomes 64 years of age, except as provided by section 8301 of title 5. See section 1251 of this title.A prior section 3887, act Aug. 10, 1956, ch. 1041, 70A Stat. 223, related to computation of years of service of commissioned officers of Army Nurse Corps or Women's Medical Specialist Corps for purposes of retirement under former sections 3881 or 3882 of this title, or retirement pay under section 3991 of this title, prior to repeal by Pub. L. 85-155, title IV, §401(1), Aug. 21, 1957, 71 Stat. 390.Prior sections 3888 and 3889 were repealed by Pub. L. 96-513, title II, §216, title VII, §701, Dec. 12, 1980, 94 Stat. 2886, 2955, effective Sept. 15, 1981.Section 3888, acts Aug. 10, 1956, ch. 1041, 70A Stat. 223; Aug. 21, 1957, Pub. L. 85-155, title I, §101(18), 71 Stat. 379; May 20, 1958, Pub. L. 85-422, §11(a)(3), 72 Stat. 131; Sept. 2, 1958, Pub. L. 85-861, §1(96), 72 Stat. 1487, related to computation of service for determining retired pay of a commissioned officer of Regular Army retired under former section 3883, 3884, 3885, or 3886 of this title.Section 3889, act Aug. 10, 1956, ch. 1041, 70A Stat. 224, provided that a member of Army retired under this chapter be entitled to retired pay computed under chapter 745 of this title.

AMENDMENTS2021- Pub. L. 116-283 renumbered section 2410m of this title as this section. 2014-Subsec. (b)(1)(A)(i). Pub. L. 113-291, §1071(a)(8)(A), substituted "section 7104(a) of such title" for "section 7 of such Act".Subsec. (b)(1)(B)(ii). Pub. L. 113-291, §1071(a)(8)(B), substituted "section 7104(a) of title 41" for "section 7 of the Contract Disputes Act of 1978". 2011-Subsec. (a). Pub. L. 111-350, §5(b) (32)(A), substituted "chapter 71 of title 41" for "the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.)" in introductory provisions.Subsec. (a)(2). Pub. L. 111-350, §5(b) (32)(B), substituted "section 7104(a) of title 41" for "section 7 of such Act (41 U.S.C. 606)". Subsec. (b)(1)(A). Pub. L. 111-350, §5(b) (32)(C), substituted "section 7104(b) of title 41" for "section 10(a) of the Contract Disputes Act of 1978 (41 U.S.C. 609(a))" in introductory provisions. Subsec. (c). Pub. L. 112-81 struck out subsec. (c), which required submission of annual report on amounts available for obligation. 2003-Subsec. (c). Pub. L. 108-136, §1031(a) (21)(A), substituted "Annual Report" for "Reporting Requirement" in heading and "Not later than 60 days after the end of each fiscal year" for "Each year" in introductory provisions. Subsec. (c)(1). Pub. L. 108-136, §1031(a) (21)(B), inserted "at the end of such fiscal year" before period at end.Subsec. (c)(2). Pub. L. 108-136, §1031(a) (21)(C), substituted "under this section during that fiscal year" for "during the year preceding the year in which the report is submitted".Subsec. (c)(3). Pub. L. 108-136, §1031(a) (21)(D), substituted "under this section during that fiscal year" for "in such preceding year".Subsec. (c)(4). Pub. L. 108-136, §1031(a) (21)(E), substituted "under this section during that fiscal year" for "in such preceding year".

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116-283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116-283, set out as a note preceding section 3001 of this title.

Defense Agency
The term "Defense Agency" means an organizational entity of the Department of Defense-(A) that is established by the Secretary of Defense under section 191 of this title (or under the second sentence of section 125(d) of this title (as in effect before October 1, 1986)) to perform a supply or service activity common to more than one military department (other than such an entity that is designated by the Secretary as a Department of Defense Field Activity); or(B) that is designated by the Secretary of Defense as a Defense Agency.
commissioned officer
The term "commissioned officer" includes a commissioned warrant officer.
grade
The term "grade" means a step or degree, in a graduated scale of office or military rank, that is established and designated as a grade by law or regulation.
pay
The term "pay" includes basic pay, special pay, retainer pay, incentive pay, retired pay, and equivalent pay, but does not include allowances.