(a) Response to Material Breach.—In the case of a material breach of contract under this subchapter by a party to the contract, the Secretary concerned shall use the authorities available to the Secretary, including withholding amounts to be paid under the contract, to encourage the party to cure the breach.
(b) Rescinding of Contract.—If a material breach of the contract is not cured in a timely manner, as determined by the Secretary concerned, the Secretary may—(1) rescind the contract pursuant to the terms of the contract; and
(2) prohibit the offending party from entering into a new contract or undertaking expansions of other existing contracts, or both, with the Secretary under this subchapter.
Structure US Code
Subtitle A— General Military Law
PART IV— SERVICE, SUPPLY, AND PROPERTY
CHAPTER 169— MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING
SUBCHAPTER IV— ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING
§ 2872a. Utilities and services
§ 2872b. Treatment of breach of contract
§ 2873. Direct loans and loan guarantees
§ 2877. Differential lease payments
§ 2878. Conveyance or lease of existing property and facilities
§ 2881. Ancillary supporting facilities
§ 2881a. Pilot projects for acquisition or construction of military unaccompanied housing
§ 2883. Department of Defense Housing Funds
§ 2885. Oversight and accountability for privatization projects