Page:United States Statutes at Large Volume 101 Part 2.djvu/140

 101 STAT. 1126

PUBLIC LAW 100-180—DEC. 4, 1987

(2) The amendments made by subsection (b) shall apply with respect to contracts, or modifications of contracts, entered into after the end of the 120-day period beginning on October 18, 1986. Contracts.

10 USC 2324 ^ot«-

10 USC 2301 note.

SEC. 805. ALLOWABLE COSTS NOT TO INCLUDE GOLDEN PARACHUTE PAYMENTS

(a) IN GENERAL.—Section 2324(e)(1) of title 10, United States Code, is amended by adding at the end the following new subparagraph: "(K) Costs incurred in making any payment (commonly known as a 'golden parachute payment') which is— "(i) in an amount in excess of the normal severance pay paid by the contractor to an employee upon termination of emplo3mtient; and (ii) is paid to the employee contingent upon, and following, a change in management control over, or ownership of, the contractor or a substantial portion of the contractor's assets.". (b) EFFECTIVE DATE.—Subparagraph (K) of section 2324(e)(l) of title 10, United States Code, as added by subsection (a), shall apply to any contract entered into after the end of the 120-day period beginning on the date of the enactment of this Act. SEC. 806. REQUIREMENT FOR SUBSTANTIAL PROGRESS ON MINORITY AND SMALL BUSINESS CONTRACT AWARDS (a) REQUIREMENT FOR SUBSTANTIAL PROGRESS.—The Secretary of

Defense shall ensure that substantial progress is made in increasing awards of Department of Defense contracts to section 1207(a) entities. (b) REGULATIONS.—The Secretary shall carry out the requirement of subsection (a) through the issuance of regulations which provide for the following: (1) Guidance to contracting officers for making advance pay' ''"^ ments to section 1207(a) entities under section 2307 of title 10, United States Code. (2) Procedures or guidelines for contracting officers to— (A) set goals which Department of Defense prime contractors that are required to submit subcontracting plans under section 8(d)(4)(B) of the Small Business Act (15 U.S.C. 637(d)(4)(B)) in furtherance of the Department's program to meet the 5 percent goal established under section 1207 of the National Defense Authorization Act for Fiscal Year 1987 should meet in awarding subcontracts, including subcontracts to minority-owned media, to section 1207(a) entities; and (B) provide incentives for such prime contractors to increase subcontractor awards to section 1207(a) entities. (3) A requirement that contracting officers emphasize the award of contracts to section 1207(a) entities in all industry categories, including those categories in which section 1207(a) entities have not traditionally dominated. (4) Guidance to Department of Defense personnel on the relationship among the following programs: (A) "The program implementing section 1207 of the National Defense Authorization Act for Fiscal Year 1987 • •••' '•' ' (Public Law 99-661; 100 Stat. 3973). ' (B) The program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)). ..;.. - -i> vfc--;

�