Page:United States Statutes at Large Volume 100 Part 5.djvu/507

 PUBLIC LAW 99-661—NOV. 14, 1986

100 STAT. 3981

"(2) In making such estimate, the Secretary shall take into account actual inflation as of the date of such report. "(b) REQUIREMENT FOR EXPLANATION OF VARIANCES.—The Secretary shall include in the report, in the case of each budget account, the following: "(DA discussion of the reasons for any variance between the amounts appropriated to offset anticipated inflation and the • amounts estimated, as of the date of such report, to be necessary ^ to carry out the programs for which the appropriations were ' made. "(2) An identification of the sources of funds used or proposed • to be used to offset any deficiency in the amount appropriated to ^ offset anticipated inflation. "(3) A description of the disposition or proposed disposition of any amount by which the amount appropriated to offset anticipated inflation exceeds the amount needed for such purpose. "(c) FISCAL YEARS COVERED BY REPORT.—The comparison and discussion required by this section shall apply to funds available to or for the use of the Department of Defense in the fiscal year during which the report is submitted and in each of the two fiscal years preceding that fiscal year.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new items: "2215. Reports on unobligated balances. "2216. Annual report on budgeting for inflation.".

(b) REPEAL.—Section 1407 of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 745), is repealed. (c) EFFECTIVE DATE.—(1) The first comparison and discussion under section 2216 of title 10, United States Code (as added by subsection (a)), shall be included in the first report under section 2215 of such title submitted in 1988 and shall include information relating only to fiscal year 1987. (2) The comparison and discussion included in the first report under section 2215 of such title submitted in 1989 shall include information relating only to fiscal years 1987 and 1988. SEC. 1308. REPORT ON DEFENSE BUDGETING AND CONTRACT PROCEDURES FOR INFLATION (a) REPORT ON ECONOMIC PRICE ADJUSTMENT CLAUSES.—The Secretary of Defense shall submit to Congress a report on the current practice of the Department of Defense of including in contracts entered into by the Department of Defense to carry out all or a portion of a program for which a Selected Acquisition Report is required an economic price adjustment clause to provide for adjustments in contract prices to compensate for inflation. (b) INFORMATION To BE INCLUDED IN REPORT.—The Secretary shall include in the report required by subsection (a) the following information: (1) The number of contracts that were entered into by the Department of Defense during fiscal year 1986 to carry out all or a portion of a program for which a Selected Acquisition Report was required for any quarter during such fiscal year and that included an economic price adjustment clause referred to in subsection (a).

10 USC 113 note. 10 USC 2215 ^^te. "'^ - "^*' Ante, p. 3980.

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