Page:United States Statutes at Large Volume 100 Part 5.djvu/447

 PUBLIC LAW 99-661—NOV. 14, 1986

100 STAT. 3921

"(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. "(C) Special access programs. "(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:

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"2326. Undefinitized contractual actions: restrictions.".

(2) Section 2326 of title 10, United States Code (as added by subsection (d)(1)), applies to undefinitized contractual actions that are entered into after the end of the 180-day period beginning on the date of the enactment of this Act. (e) DEFINITION.—For purposes of this section, the term "undefinitized contractual action" has the meaning given such term in section 2325(g) of title 10, United States Code (as added by subsection (d)(1)).

10 USC 2326 note, 10 USC 2326 ^^te.

SEC. 909. COMPETITIVE PROTOTYPE STRATEGY REQUIREMENT FOR MAJOR DEFENSE ACQUISITION PROGRAMS

(a) ESTABLISHMENT OF REQUIREMENT.—(1) Chapter 139 of title 10, United States Code, is amended by adding after section 2364 (as added by section 234) the following new section: "§ 2365. Competitive prototype strategy defense acquisition programs

requirement:

major

"(a) COMPETITIVE PROTOTYPE STRATEGY REQUIREMENT.—Except as

provided in subsection (c), the Secretary of Defense shall require the

i lo USC 2365.

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