Page:United States Statutes at Large Volume 102 Part 2.djvu/1003

 PUBLIC LAW 100-456—SEPT. 29, 1988

102 STAT. 2007

(d) DEFINITION.—For purposes of this section, the term "first-year energy cost savings" means the savings realized by the United States during the first year of a contract entered into by the Secretary of a military department under title VIII of the National Energy Conservation Policy Act. TITLE VIIl—ACQUISITION POLICY AND MANAGEMENT PART A—ACQUISITION MANAGEMENT

Business and industry. Science and technology. Contracts.

SEC. 801. INTEGRATED FINANCING POLICY

(a) IN GENERAL.—(1) Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section: "§ 2330. integrated financing policy "(a) PLAN.—(1) The Secretary of Defense shall develop and keep current a plan that ensures that Department of Defense policies referred to in paragraph (2) are structured to meet the long-term needs of the Department of Defense for industrial resources and technology innovation. "(2) This section applies to the following policies applicable to Department of Defense contracts: "(A) Policies relating to progress pa3niients or other financing by the Department of Defense under such contracts. "(B) Policies relating to the return on contractor investment under such contracts. "(C) Policies relating to the allocation of contract risk between the Department of Defense and a contractor. "(b) MATTERS TO TAKE INTO CONSIDERATION.—In developing the plan under subsection (a) and keeping such plan current, the Secretary shall take into consideration the following: "(1) The Five-Year Defense Program submitted to Congress under section 114(g) of this title each year. "(2) Department of Defense mobilization plans. "(3) The different characteristics of separate segments and tiers of private industry. "(4) The profitability of contracts negotiated by the Department of Defense in each fiscal year. "(c) REVIEW.—Each year the Secretary of Defense shall review the plan developed under subsection (a) and shall report the results of such review to the (Committees on Armed Services of the Senate and the House of Representatives in conjunction with the submission of the Five-Year Defense Program in such year. "(d) U S E OF INFORMATION ON PROFITABILITY.—The Secretary of

Defense, in negotiating any contract, shall use the most current information on profitability developed or obtained by the Secretary of Defense. The Secretary shall submit a report to Congress each year in conjunction with the submission of the Five-Year Defense Program on the extent to which contracts negotiated during the preceding fiscal year have prevented excessive contractor profits, determined on the basis of information obtained by the Secretary of Defense.". (2) The table of sections at the b ^ i n n i n g of such chapter is amended by adding at the end the following: "2330. Integrated financing policy.".

Reports.

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