Page:United States Statutes at Large Volume 102 Part 1.djvu/884

 102 STAT. 846

10 USC 2307 note. Insurance.

10 USC 2324 note.

10 USC 2353 note.

PUBLIC LAW 100-370—JULY 19, 1988 (f) PROCUREMENT GENERALLY.—(I)(A) Section 2307 of title 10, United States Code, is amended by adding at the end the following new subsection: "(e)(1) The Secretary of Defense shall ensure that any payment for work in progress (including materials, labor, and other items) under a defense contract that provides for such payments is commensurate with the work, which meets standards of quality established under the contract, that has been accomplished. "(2) The Secretary shall ensure that progress payments referred to in paragraph (1) are not made for more than 80 percent of the work accomplished under a defense contract so long as the Secretary has not made the contractual terms, specifications, and price definite. "(3) This subsection does not apply to contracts for amounts less than the maximum amount for small purchases specified in section 2304(g)(2) of this title.". (B) Section 916 of the Defense Procurement Improvement Act of 1985 (title IX of Public Law 99-145; 99 Stat. 688) is repealed. (2)(A) Section 2324(e)(l) of such title (as amended by section 805 of Public Law 100-180) is amended by adding at the end the following new subparagraph: "(L) Costs of commercial insurance that protects against the costs of the contractor for correction of the contractor's own defects in materials or workmanship.". (B) Section 2399 of such title is repealed. (3)(A) Section 2324 of such title is further amended— (i) by redesignating subsections (j) ^nd (k) as subsections (k) and (1), respectively; and (ii) by inserting after subsection (i) the following new subsection (j): "(j) In a proceeding before the Armed Services Board of Contract Appeals, the United States Claims Court, or any other Federal court in which the reasonableness of indirect costs for which a contractor seeks reimbursement from the Department of Defense is in issue, the burden of proof shall be upon the contractor to establish that those costs are resisonable.". (B) Section 933 of the Defense Procurement Improvement Act of 1985 (title IX of Public Law 99-145; 99 Stat. 700) is repealed. (g) RESEARCH AND DEVELOPMENT.—(1) Section 2361 of title 10, United States Code, is transferred within chapter 139 to appear immediately before section 2352, redesignated as section 2351, and amended— (A) by inserting "(a)" before "Funds"; and (B) by adding at the end the following new subsection: "(b) Funds appropriated to the Department of Defense for research and development may be used— "(1) for the purposes of section 2353 of this title; and "(2) for purposes related to research and development for which expenditures are specifically authorized in other appropriations of the Department of Defense.". (2) Section 8015 of the Department of Defense Appropriations Act, 1986 (as contained in section 101(b) of Public Law 99-190 (99 Stat. 1205)), is repealed, (3) Section 2358 of title 10, United States Code, is amended— (A) by inserting "(a) IN GENERAL.—" before "Subject to approval" in the first sentence; (B) by striking out "or his designee" both places it appears; and

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