10 USC § 3801 - Authority of agency

---
identifier: "/us/usc/t10/s3801"
source: "usc"
legal_status: "official_legal_evidence"
title: "10 USC § 3801 - Authority of agency"
title_number: 10
title_name: "ARMED FORCES"
section_number: "3801"
section_name: "Authority of agency"
chapter_number: 277
chapter_name: "CONTRACT FINANCING"
part_number: "V"
part_name: "ACQUISITION"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1834(a), (b), Jan. 1, 2021, 134 Stat. 4234.)"
---


# § 3801. Authority of agency

**(a)** **Payment Authority.—** The head of any agency may—

**(1)** make advance, partial, progress, or other payments under contracts for property or services made by the agency; and

**(2)** insert in solicitations for procurement of property or services a provision limiting to small business concerns advance or progress payments.

**(b)** **Payment Dates for Contractors That Are Small Business Concerns.—**

**(1)** **Prime contractors.—** For a prime contractor (as defined in section 8701 of title 41) that is a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)), the Secretary of Defense shall, to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due.

**(2)** **Subcontractors.—** For a prime contractor that subcontracts with a small business concern, the Secretary of Defense shall, to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due if the prime contractor agrees to make payments to the subcontractor in accordance with the accelerated payment date, to the maximum extent practicable, without any further consideration from or fees charged to the subcontractor.

---

**Source Credit**: (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1834(a), (b), Jan. 1, 2021, 134 Stat. 4234.)

## Editorial Notes

### Codification

The text of subsec. (a) of , which was transferred to this section and amended by , was based on , ; , , ; , (c), , , 3302; , , ; , , ; , , ; , , .

### Amendments

2021—Subsec. (a). , (2), transferred subsec. (a) of  to this section, struck out par. (1) designation before “The head of”, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively. Former par. (2) of subsec. (a) redesignated subsec. (b).

Subsec. (b). , (3)(A)–(C)(i), redesignated par. (2) of subsec. (a) as subsec. (b), inserted subsec. heading, and redesignated subpars. (A) and (B) as pars. (1) and (2), respectively, and inserted par. headings.

Subsec. (b)(2). , which directed amendment of par. (2) by redesignating cls. (i) and (ii) as subpars. (A) and (B), respectively, could not be executed because of the amendment made by , which struck out cls. (i) and (ii) in  prior to its transfer and redesignation as subsec. (b)(2) of this section.

## Statutory Notes and Related Subsidiaries

### Effective Date

Section and amendment by  effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as an Effective Date of 2021 Amendment note preceding .