Page:United States Statutes at Large Volume 100 Part 2.djvu/822

 100 STAT. 1783-141

PUBLIC LAW 99-500—OCT. 18, 1986

overall ceiling price is expended on such action, the contracting officer for such action may not expend with respect to such contractual action an amount that is equal to more than 75 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. "(4) This subsection does not apply to an undefinitized contractual action for the purchase of initial spares. "(c) INCLUSION OF NON-URGENT REQUIREMENTS.—Requirements



for spare parts and support equipment that are not needed on an urgent basis may not be included in an undefinitized contractual action for spare parts and support equipment that are needed on an urgent basis unless the head of the agency approves such inclusion as being— "(1) good business practice; and '' = n "(2) in the best interests of the United States. "(d) MODIFICATION OF SCOPE.—The scope of an undefinitized contractual action under which performance has begun may not be modified unless the head of the agency approves such modification as being— "(1) good business practice; and ' .. * "(2) in the best interests of the United States. "(e) ALLOWABLE PROFIT.—The head of an agency shall ensure that the profit allowed on an undefinitized contractual action for which the final price is negotiated after a substantial portion of the performance required is completed reflects— "(1) the possible reduced cost risk of the contractor with respect to costs incurred during performance of the contract before the final price is negotiated; and "(2) the reduced cost risk of the contractor with respect to costs incurred during performance of the remaining portion of the contract. "(f) APPLICABILITY.—This section does not apply to the Coast Guard or the National Aeronautics and Space Administration. "(g) DEFINITIONS.—In this section: "(1) The term 'undefinitized contractual action' means a new ^ procurement action entered into by the head of an agency for which the contractual terms, specifications, or price are not agreed upon before performance is begun under the action. Such term does not include contractual actions with respect to the following: "(A) Foreign military sales. > "(B) Purchases of less than $25,000.;;uv. - . - n w "(C) Special access programs. '•- r>;; "(D) Congressionally-mandated long-lead procurement contracts. "(2) The term 'qualifying proposal' means a proposal that contains sufficient information to enable the Department of ^^' Defense to conduct complete and meaningful audits of the information contained in the proposal and of any other information that the Department is entitled to review in connection with the contract, as determined by the contracting officer.". (B) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 2325 (as added by section 907) the following new item: "2326. Undefinitized contractual actions: restrictions.".

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