Page:United States Statutes at Large Volume 118.djvu/2044

 118 STAT. 2014 PUBLIC LAW 108–375—OCT. 28, 2004 SEC. 813. PERIOD FOR MULTIYEAR TASK AND DELIVERY ORDER CON TRACTS. (a) REVISED MAXIMUM PERIOD.—Section 2304a(f) of title 10, United States Code, is amended by striking ‘‘a total period of not more than five years.’’ and inserting ‘‘any period up to five years and may extend the contract period for one or more successive periods pursuant to an option provided in the contract or a modifica tion of the contract. The total contract period as extended may not exceed 10 years unless such head of an agency determines in writing that exceptional circumstances necessitate a longer con tract period.’’. (b) ANNUAL REPORT.—Not later than 60 days after the end of each of fiscal years 2005 through 2009, the Secretary of Defense shall submit to Congress a report setting forth each extension of a contract period to a total of more than 10 years that was granted for task and delivery order contracts of the Department of Defense during such fiscal year under section 2304a(f) of title 10, United States Code. The report shall include, with respect to each such contract period extension— (1) a discussion of the exceptional circumstances on which the extension was based; and (2) the justification for the determination of exceptional circumstances. SEC. 814. FUNDING FOR CONTRACT CEILINGS FOR CERTAIN MULTIYEAR PROCUREMENT CONTRACTS. (a) MULTIYEAR CONTRACTS RELATING TO PROPERTY.—Section 2306b(g) of title 10, United States Code, is amended— (1) by inserting ‘‘(1)’’ before ‘‘Before any’’; (2) by striking ‘‘Committee’’ through ‘‘House of Representa tives’’ and inserting ‘‘congressional defense committees’’; and (3) by adding at the end the following new paragraph: ‘‘(2) In the case of a contract described in subsection (a) with a cancellation ceiling described in paragraph (1), if the budget for the contract does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established in the contract, the head of the agency concerned shall, as part of the certification required by subsection (i)(1)(A), give written notification to the congressional defense committees of— ‘‘(A) the cancellation ceiling amounts planned for each pro gram year in the proposed multiyear procurement contract, together with the reasons for the amounts planned; ‘‘(B) the extent to which costs of contract cancellation are not included in the budget for the contract; and ‘‘(C) a financial risk assessment of not including budgeting for costs of contract cancellation.’’. (b) MULTIYEAR CONTRACTS RELATING TO SERVICES.—Section 2306c(d) of title 10, United States Code, is amended— (1) in paragraphs (1), (3), and (4), by striking ‘‘committees of Congress named in paragraph (5)’’ and inserting ‘‘congres sional defense committees’’ each place it appears; and (2) by amending paragraph (5) to read as follows: ‘‘(5) In the case of a contract described in subsection (a) with a cancellation ceiling described in paragraph (4), if the budget for the contract does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established

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