Page:United States Statutes at Large Volume 102 Part 2.djvu/1019

 PUBLIC LAW 100-456—SEPT. 29, 1988

102 STAT. 2023

(1) An assessment of whether the regulations required by section 2324(f)(5) of title 10, United States Code (as added by subsection (a)), provide the appropriate incentives to stimulate exports by the United States defense industry and provide cost savings to the United States. (2) An assessment of whether such regulations provide appropriate criteria to ensure that costs allowed are reasonably likely to provide future cost savings to the United States. (d) TERMINATION.—Section 2324(f)(5) of title 10, United States Code 10 USC 2324 (as added by subsection (a)), shall cease to be effective three years note. after the date of the enactment of this Act. PART C—POUCIES RELATING TO DEFENSE CONTRACTORS SEC. 831. ADDITIONAL PROHIBITIONS ON PERSONS CONVICTED OF FELONIES RELATED TO DEFENSE CONTRACTS

(a) IN GENERAL.—Section 2408(a) of title 10, United States Code, is amended to read as follows: "(a) PROHIBITION.—(1) An individual who is convicted of fraud or Fraud. any other felony arising out of a contract with the Department of Defense shall be prohibited from each of the following: "(A) Working in a management or supervisory capacity on any defense contract, "(B) Serving on the board of directors of any defense contractor. "(C) Serving as a consultant to any defense contractor. "(D) Being involved in any other way, as determined under Regulations. regulations prescribed by the Secretary of Defense, with a defense contract. "(2) Except as provided in paragraph (3), the prohibition in paragraph (1) shall apply for a period, as determined by the Secretary of Defense, of not less than five years after the date of the conviction. "(3) The prohibition in paragraph (1) may apply with respect to an individual for a period of less than five years if the Secretary determines that the five-year period should be waived in the interests of national security. If the five-year period is waived, the Reports. Secretary shall submit to Congress a report stating the reasons for the waiver.". (b) EFFECTIVE DATE.—Section 2408(a) of title 10, United States 10 USC 2408 Code, as amended by subsection (a), shall apply with respect to note. individuals convicted after the date of the enactment of this Act. SEC. 832. LIMITATION ON ALLOWABILITY OF COSTS OF CONTRACTORS INCURRED IN CERTAIN PROCEEDINGS

(a) LIMIT ON COSTS.—Section 2324(e) of title 10, United States Code, is amended— (1) by adding at the end of paragraph (1), as amended by section 322(a), the following: "(N) Except as provided in paragraph (2), costs incurred in connection with any civil, criminal, or administrative action brought by the United States that results in a determination that a contractor has violated or failed to comply with any Federal law or regulation if the action results in any of the following: "(i) In the case of a criminal action, a conviction (including a conviction pursuant to a plea of nolo contendere).

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