Page:United States Statutes at Large Volume 104 Part 2.djvu/776

 104 STAT. 1388-368 PUBLIC LAW 101-508 —NOV. 5, 1990 best interests of the United States. Such cancellation provisions may include consideration of both recurring and nonrecurring costs of the contractor associated with the production of the items to be delivered under the contract. "(C) BROADENING INDUSTRIAL BASE. —In order to broaden the aviation industrial base, the regulations issued under this paragraph shall provide that, to the extent practicable— "(i) multiyear contracting under paragraph (1) shall be used in such a manner as to seek, retain, and promote the use under such contracts of companies that are subcontractors, vendors, or suppliers; and "(ii) upon accrual of any payment or other benefit under such a multiyear contract to any subcontract, vendor, or supplier company participating in such contractor, such payment or benefit shall be delivered to such company in the most expeditious manner practicable. "(D) PROTECTION OF FEDERAL INTERESTS. —The regulations issued under this paragraph shall also provide that, to the extent practicable, the administration of this subsection, and of the regulations issued under this subsection, shall not be carried out in a manner to preclude or curtail the existing ability of the Federal Aviation Administration to— "(i) provide for competition in the production of items to be delivered under such a contract; or "(ii) provide for termination of a prime contract the performance of which is deficient with respect to cost, quality, or schedule. "(3) SPECIAL RULE FOR CONTRACTS WITH HIGH CANCELLATION CEILING.— Before any contract described in paragraph (1) that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the Administrator shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Public Works and Transportation of the House of Representatives, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification. "(4) ADVANCE PROCUREMENT.— Contracts made under this subsection may be used for the advance procurement of components, parts, and materials necessary to the manufacture of equipment to be used in the National Airspace System, and contracts may be made under this subsection for such advance procurement, if feasible and practicable, in order to achieve economic-lot purchases and more efficient production rates. "(5) TERMINATION.— In the event funds are not made available for the continuation of a contract made under this subsection into a subsequent fiscal year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from— "(A) appropriations originally available for the performance of the contract concerned; "(B) appropriations currently available for procurement of the type of property concerned, and not otherwise obligated; or

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