§2392. Prohibition on use of funds to relieve economic dislocations

(a) In order to help avoid the uneconomic use of Department of Defense funds in the procurement of goods and services, the Congress finds that it is necessary to prohibit the use of such funds for certain purposes.

(b) No funds appropriated to or for the use of the Department of Defense may be used to pay, in connection with any contract awarded by the Department of Defense, a price differential for the purpose of relieving economic dislocations.

(Added Pub. L. 97–86, title IX, §913(a)(1), Dec. 1, 1981, 95 Stat. 1123 .)

Contracts Made by Defense Logistics Agency; Payments of Price Differentials To Relieve Economic Dislocations; Test Program; Interim Reports

Pub. L. 97–252, title XI, §1109, Sept. 8, 1982, 96 Stat. 746 , as amended by Pub. L. 98–94, title XII, §1205, Sept. 24, 1983, 97 Stat. 683 ; Pub. L. 98–525, title XII, §1254, Oct. 19, 1984, 98 Stat. 2611 , provided that:

"(a) The Secretary of Defense should conduct a test program during fiscal years 1983, 1984, and 1985 in accordance with this subsection to test the effect of exempting certain contracts of the Department of Defense from the provisions of section 2392 of title 10, United States Code, and paying a price differential under such contracts for the purpose of relieving economic dislocations. Under such test program, the Secretary of Defense may exempt from the provisions of such section any contract (other than a contract for the purchase of fuel) made by the Defense Logistics Agency during fiscal years 1983, 1984, and 1985 if the contract is to be awarded to an individual or firm located in a Labor Surplus Area (as defined and identified by the Department of Labor) and if the Secretary determines-

"(1) that the awarding of such contract will not adversely affect the national security of the United States;

"(2) that there is a reasonable expectation that bids will be received from a sufficient number of responsible bidders so that the award of such contract will be made at reasonable cost to the United States;

"(3) that the price differential to be paid under such contract will not exceed 2.2 percent; and

"(4) the value of such contract, when added to the cumulative value of all other contracts awarded under the test program authorized by this section, will not exceed $4,000,000,000.

"(b) Not later than April 15, 1983, April 15, 1984, and April 15, 1985 the President shall submit a report to Congress on the implementation and results to that date of the test program authorized by subsection (a). The report shall include an assessment of the costs and benefits of the test program."

[Amendment of subsecs. (a) and (b) by Pub. L. 98–525, §1254(a), was made effective Oct. 1, 1984; and amendment of subsec. (a) by Pub. L. 98–525, §1254(b), was made effective as of Oct. 1, 1982.]

Similar provisions were contained in the following prior authorization act:

1982-Dec. 1, 1981, Pub. L. 97–86, title IX, §913(b), (c), 95 Stat. 1124 .