Page:United States Statutes at Large Volume 108 Part 4.djvu/624

 108 STAT. 3258 PUBLIC LAW 103-355 —OCT. 13, 1994 "(4) that there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive; "(5) that the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are reaUstic; and "(6) in the case of a purchase by the Department of Defense, that the use of such a contract will promote the national security of the United States. " (b) REGULATIONS.— (1) Each official named in paragraph (2) shall prescribe acquisition regulations for the agency or agencies under the jurisdiction of such official to promote the use of multiyear contracting as authorized by subsection (a) in a msuiner that will allow the most efficient use of multiyear contracting. "(2)(A) The Secretary of Defense shall prescribe the regulations applicable to the Department of Defense. "(B) The Secretary of Transportation shall prescribe the regulations applicable to the Coast Guard, except that the regulations prescribed by the Secretary of Defense shall apply to the Coast Guard when it is operating as a service in the Navy. "(C) The Administrator of the National Aeronautics and Space Administration shall prescribe the regulations applicable to the National Aeronautics and Space Administration. "(c) CONTRACT CANCELLATIONS.—The regulations may provide for cancellation provisions in multiyear contracts to the extent that such provisions are necessary and in the best interests of the United States. The 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. "(d) PARTICIPATION BY SUBCONTRACTORS, VENDORS, AND SUPPLI- ERS.—In order to broaden the defense industrial base, the regulations shall provide that, to the extent practicable— "(1) 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 "(2) upon accrual of any payment or other benefit under such a vmultiyear contract to any subcontractor, vendor, or supplier company participating in such contract, such payment or benefit shall be delivered to such company in the most expeditious manner practicable. "(e) PROTECTION OF EXISTING AUTHORITY.-The regulations shall provide that, to the extent practicable, the administration of this section, and of the regulations prescribed under this section, shall not be carried out in a manner to preclude or curtail the existing ability of an agency— "(1) to provide for competition in the production of items to be delivered under such a contract; or "(2) to provide for termination of a prime contract the performance of which is deficient with respect to cost, quality, or schedule. "(f) CANCELLATION OR TERMINATION FOR INSUFFICIENT FUND- ING. —In the event funds are not made available for the continuation of a contract made under this section into a subsequent fiscal year, the contract shall be canceled or terminated. The coste of cancellation or termination may be paid from—

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