Page:United States Statutes at Large Volume 100 Part 2.djvu/836

 100 STAT. 1783-155

PUBLIC LAW 99-500—OCT. 18, 1986

the date that the offeror submits such certification or statement to such head of an agency. "(3) The authority provided by this subsection is in addition to the authority of the head of an agency under section 2306a of this title. "(e) REGULATIONS.—The Secretary of Defense, after consultation with the Secretary of Transportation and the Administrator of the National Aeronautics and Space Administration, shall prescribe regulations to carry out this section. Such regulations may not require the disclosure or submission of any data related to any element underlying the price of a commercial product not otherwise required by law. "(f) DEFINITIONS.—In this section: "(1) The term 'spare or repair part' means any individual piece, part, subassembly, or component which is furnished for the logistic support or repair of an end item and not as an end item itself. "(2) The term 'lowest commercial price' means the lowest price at which a sale was made to the general public of a particular part. Such term does not include the price at which a sale was made— "(A) to any agency of the United States; "(B) to any person for resale by such person after such person performs a service or function in connection with such part that increases the cost of the part, unless the agency procuring the part can demonstrate that the agency is procuring the part before such service or function has been performed by any such person; "(C) to a subsidiary, affiliate, or parent business organiza' tion of the contractor, or any other branch of the same business entity; "(D) to any person at a price that, for the purpose of making a donation, has been substantially discounted below the fair market value or regular price of such part; or "(E) to a customer located outside the United States. "(g) APPLICABILITY.—This section does not apply to a contract entered into using simplified small purchase procedures established under section 2304(g) of this title.". (2) The item relating to section 2323 at the beginning of chapter 137 is amended to read as follows: "2323. Commercial pricing for spare or repair parts.".

(b) EFFECTIVE DATE.—Regulations prescribed under section 2323(e) of title 10, United States Code (as amended by subsection (a)(1)), shall take effect on the date of the enactment of this Act. SEC. 927. ALLOCATION OF OVERHEAD TO PARTS TO WHICH CONTRACTOR HAS ADDED LITTLE VALUE

(a) IN GENERAL.—Section 2304 of of title 10, United States Code, is amended by adding at the end the following new subsection: "(i)(l) The Secretary of Defense shall prescribe by regulation the manner in which the Department of Defense negotiates prices for supplies to be obtained through the use of procedures other than competitive procedures, as defined in section 2302(2) of this title. "(2) The regulations required by paragraph (1) shall— "(A) specify the incurred overhead a contractor may appropriately allocate to supplies referred to in that paragraph; and

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