Page:United States Statutes at Large Volume 100 Part 4.djvu/745

 PUBLIC LAW 99-591—OCT. 30, 1986

100 STAT. 3341-140

(C) The period beginning on October 1, 1987, and ending on March 31, 1988. (D) The period beginning on April 1, 1988, and ending on September 30, 1988. (E) The period beginning on October 1, 1988, and ending on March 31, 1989. (b) OVERSIGHT BY INSPECTOR GENERAL.—The Inspector General of the Department of Defense shall— (1) periodically conduct an audit of contractual actions under the jurisdiction of the Secretary of Defense (with respect to the Defense Logistics Agency) and the Secretaries of the military departments; and (2) after each audit, submit to Congress a report on the management of undefinitized contractual actions by each Secretary, including the amount of contractual actions under the jurisdiction of each Secretary that is represented by undefinitized contractual actions. (c) WAIVER AUTHORITY.—The Secretary of Defense may waive the application of this section for urgent and compelling considerations relating to national security or public safety if the Secretary notifies the Committees on Armed Services of the Senate and House of Representatives of such waiver before the end of the 30-day period beginning on the date that the waiver is made. (d) ESTABLISHMENT OF REQUIREMENTS WiTH R E S P E C T UNDEFINITIZED CONTRACTUAL ACTIONS.—(I)(A) Chapter 137 of

TO

title 10, United States Code, is amended by adding after section 2325 (as added by section 907) the following new section: "§ 2326. Undefinitized contractual actions: restrictions "(a) IN GENERAL.—The head of an agency may not enter into an undefinitized contractual action unless the request to the head of the agency for authorization of the contractual action includes a description of the anticipated effect on requirements of the military department concerned if a delay is incurred for purposes of determining contractual terms, specifications, and price before performance is begun under the contractual action. "(b) LIMITATIONS ON OBLIGATION AND EXPENDITURE OF FUNDS.—(1)

A contracting officer of the Department of Defense may not enter into an undefinitized contractual action unless the contractual action provides for agreement upon contractual terms, specifications, and price by the earlier of— "(A) the end of the 180-day period beginning on the date on which the contractor submits a qualifying proposal to definitize the contractual terms, specifications, and price; or "(B) the date on which the amount of funds obligated or expended under the contractual action is equal to more than 50 percent of the negotiated overall ceiling price for the contractual action. "(2) Except as provided in paragraph (3), the contracting officer for an undefinitized contractual action may not expend with respect to such contractual action an amount that is equal to more than 50 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. "(3) If a contractor submits a qualifying proposal (as defined in subsection (g)) to definitize an undefinitized contractual action before an amount equal to more than 50 percent of the negotiated

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