Page:United States Statutes at Large Volume 108 Part 4.djvu/625

 PUBLIC LAW 103-355 —OCT. 13, 1994 108 STAT. 3259 "(1) appropriations originally available for the performance of the contract concerned; "(2) appropriations currently available for procurement of the t3rpe of property concerned, and not otherwise obligated; or "(3) funds appropriated for those pa3nnents. "(g) CONTRACT CANCELLATION CEILINGS EXCEEDING $100,000,000.— Before any contract described in subsection (a) that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the head of the agency concerned shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the Committees on Armed Services and on Appropriations of the Senate and 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. "(h) DEFENSE ACQUISITIONS OF WEAPON SYSTEMS.—In the case of the Department of Defense, the authority under subsection (a) includes authority to enter into the following multiyear contracts in accordance with this section: "(1) A multiyear contract for the purchase of a weapon system, items and services associated with a weapon system, and logistics support for a weapon system. "(2) A multiyear contract for advance procurement of components, parts, and materials necessary to the manufacture of a weapon system, including a multiyear contract for such advance procurement that is entered into in order to achieve economic-lot purchases and more efficient production rates. " (i) DEFENSE ACQUISITIONS SPECIFICALLY AUTHORIZED BY LAW.^1) A multiyear contract may not be entered into for any fiscal year under this section for a defense acquisition program that has been specifically authorized by law to be carried out using multiyear contract authority unless each of the following conditions is satisfied: "(A) The Secretary of Defense certifies to Congress that the current five-year defense program fully funds the support costs associated with the multiyear program. "(B) The proposed multiyear contract provides for production at not less than minimum economic rates given the existing tooling and facilities. "(2) If for any fiscal year a multiyear contract to be entered into under this section is authorized by law for a particular procurement program and that authorization is subject to certain conditions established by law (including a condition as to cost savings to be achieved under the multiyear contract in comparison to specified other contracts) and if it appears (after negotiations with contractors) that such savings cannot be achieved, but that substantial savings could nevertheless be achieved through the use of a multiyear contract rather than specified other contracts, the President may submit to Congress a request for relief from the specified cost savings that must be achieved through multiyear contracting for that program. Any such request by the President shall include details about the request for a multiyear contract, including details about the negotiated contract terms and conditions. "( j) DEFENSE CONTRACT OPTIONS FOR VARYING QUANTITIES.— The Secretary of Defense may instruct the Secretary of the military department concerned to incorporate into a proposed multiyear

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