{"identifier":"/us/usc/t41/s4710","title":41,"num":"\u00a7\u202f4710.","heading":"Limitations on tiering of subcontractors","text":"\u00a7\u202f4710.\nLimitations on tiering of subcontractors\n(a)\nDefinition.\u2014\nIn this section, the term \u201cexecutive agency\u201d has the same meaning given in\nsection 133 of this title\n(b)\nRegulations.\u2014\nFor executive agencies other than the Department of Defense, the Federal Acquisition Regulation shall\u2014\n(1) require contractors to minimize the excessive use of subcontractors, or of tiers of subcontractors, that add no or negligible value; and\n(2) ensure that neither a contractor nor a subcontractor receives indirect costs or profit on work performed by a lower-tier subcontractor to which the higher-tier contractor or subcontractor adds no or negligible value (but not to limit charges for indirect costs and profit based on the direct costs of managing lower-tier subcontracts).\n(c)\nCovered Contracts.\u2014\nThis section applies to any cost-reimbursement type contract or task or delivery order in an amount greater than the simplified acquisition threshold (as defined by\nsection 134 of this title\n(d)\nRule of Construction.\u2014\nNothing in this section shall be construed as limiting the ability of the Department of Defense to implement more restrictive limitations on the tiering of subcontractors.\n(e)\nApplicability.\u2014\nThe Department of Defense shall continue to be subject to guidance on limitations on tiering of subcontractors issued by the Department of Defense pursuant to section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (\nPublic Law 109\u2013364\n10 U.S.C. 2324","url":"https://projectusc.org/usc/t41/s4710.html","content":[{"t":"sec","id":"/us/usc/t41/s4710","children":[{"t":"num","text":"\u00a7\u202f4710."},{"t":"heading","text":"Limitations on tiering of subcontractors"},{"t":"subsec","id":"/us/usc/t41/s4710/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Definition.\u2014"},{"t":"content","text":"In this section, the term \u201cexecutive agency\u201d has the same meaning given in ","children":[{"t":"ref","text":"section 133 of this title","href":"/us/usc/t41/s133","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t41/s4710/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Regulations.\u2014"},{"t":"chapeau","text":"For executive agencies other than the Department of Defense, the Federal Acquisition Regulation shall\u2014"},{"t":"para","id":"/us/usc/t41/s4710/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" require contractors to minimize the excessive use of subcontractors, or of tiers of subcontractors, that add no or negligible value; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t41/s4710/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" ensure that neither a contractor nor a subcontractor receives indirect costs or profit on work performed by a lower-tier subcontractor to which the higher-tier contractor or subcontractor adds no or negligible value (but not to limit charges for indirect costs and profit based on the direct costs of managing lower-tier subcontracts).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t41/s4710/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Covered Contracts.\u2014"},{"t":"content","text":"This section applies to any cost-reimbursement type contract or task or delivery order in an amount greater than the simplified acquisition threshold (as defined by ","children":[{"t":"ref","text":"section 134 of this title","href":"/us/usc/t41/s134","tail":")."}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t41/s4710/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Rule of Construction.\u2014"},{"t":"content","text":"Nothing in this section shall be construed as limiting the ability of the Department of Defense to implement more restrictive limitations on the tiering of subcontractors.","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t41/s4710/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Applicability.\u2014"},{"t":"content","text":"The Department of Defense shall continue to be subject to guidance on limitations on tiering of subcontractors issued by the Department of Defense pursuant to section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (","children":[{"t":"ref","text":"Public Law 109\u2013364","href":"/us/pl/109/364","tail":", "},{"t":"ref","text":"10 U.S.C. 2324","href":"/us/usc/t10/s2324","tail":" note)."}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}