Page:United States Statutes at Large Volume 110 Part 1.djvu/421

 PUBLIC LAW 104-106—FEB. 10, 1996 110 STAT. 397 elsewhere that the Secretary determines are directly and substantially related to the production of defense supplies and services at the facility and are necessary for the pilot program. (d) CRITERIA FOR DESIGNATION OF PARTICIPATING FACILITIES.— The Secretary shall establish criteria for selecting a facility for designation as a participant in the pilot program. In developing such criteria, the Secretary shall consider the following: (1) The number of existing and anticipated contracts and subcontracts performed at the facility— (A) for which contractors are required to provide certified cost or pricing data pursuant to section 2306a of title 10, United States Code; and (B) which are administered with the application of cost accounting standards under section 26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)). (2) The relationship of the facility to other organizations and facilities performing under contracts with the Department of Defense and subcontracts under such contracts. (3) The impact that the participation of the facility under the pilot program would have on competing domestic manufacturers. (4) Such other factors as the Secretary considers appropriate. (e) NOTIFICATION.— (1) The Secretary shall transmit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a written notification of each facility proposed to be designated by the Secretary for participation in the pilot program. (2) The Secretary shall include in the notification regarding a facility designated for participation in the program a management plan addressing the following: (A) The proposed treatment of research and development contracts or subcontracts to be performed at the facility during the pilot program. (B) The proposed treatment of the cost impact of the use of commercial practices on the award and administration of contracts and subcontracts performed at the facility. (C) The proposed method for reimbursing the contractor for existing and new contracts. (D) The proposed method for measuring the performance of the facility for meeting the management goals of the Secretary. (E) Estimates of the annual amount and the total amount of the contracts and subcontracts covered under the pilot program. (3)(A) The Secretary shall ensure that the management plan for a facility provides for attainment of the following objectives: (i) A significant reduction of the cost to the Government for programs carried out at the facility. (ii) A reduction of the schedule associated with programs carried out at the facility. (iii) An increased use of commercial practices and procedures for programs carried out at the facility. (iv) Protection of a domestic manufacturer competing for contracts at such facility from being placed at a significant competitive disadvantage by the participation of the facility in the pilot program.

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