Page:United States Statutes at Large Volume 120.djvu/2360

 PUBLIC LAW 109–364—OCT. 17, 2006

120 STAT. 2329

(1) determine that such non-defense agency is compliant with defense procurement requirements; and (2) notify the Secretary of Defense of that determination. (g) IDENTIFICATION OF PROCUREMENTS MADE DURING A PARTICULAR FISCAL YEAR.—For the purposes of subsection (a), a procurement shall be treated as being made during a particular fiscal year to the extent that funds are obligated by the Department of Defense for that procurement in that fiscal year. (h) RESOLUTION OF DISAGREEMENTS.—If the Inspector General of the Department of Defense and the Inspector General of a covered non-defense agency are unable to agree on a joint determination under subsection (a) or (f), a determination by the Inspector General of the Department of Defense under such subsection shall be conclusive for the purposes of this section. (i) DEFINITIONS.—In this section: (1) The term ‘‘covered non-defense agency’’ means each of the following: (A) The Department of Veterans Affairs. (B) The National Institutes of Health. (2) The term ‘‘governmentwide acquisition contract’’, with respect to a covered non-defense agency, means a task or delivery order contract that— (A) is entered into by the non-defense agency; and (B) may be used as the contract under which property or services are procured for one or more other departments or agencies of the Federal Government.

Notification.

SEC. 818. DETERMINATION OF CONTRACT TYPE FOR DEVELOPMENT PROGRAMS.

(a) REPEAL OF SUPERSEDED REQUIREMENTS.—Section 807 of the National Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2304 note) is repealed. (b) MODIFICATION OF REGULATIONS.—Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall modify the regulations of the Department of Defense regarding the determination of contract type for development programs. (c) ELEMENTS.—As modified under subsection (b), the regulations shall require the Milestone Decision Authority for a major defense acquisition program to select the contract type for a development program at the time of a decision on Milestone B approval (or Key Decision Point B approval in the case of a space program) that is consistent with the level of program risk for the program. The Milestone Decision Authority may select— (1) a fixed-price type contract (including a fixed price incentive contract); or (2) a cost type contract. (d) CONDITIONS WITH RESPECT TO AUTHORIZATION OF COST TYPE CONTRACT.—As modified under subsection (b), the regulations shall provide that the Milestone Decision Authority may authorize the use of a cost type contract under subsection (c) for a development program only upon a written determination that— (1) the program is so complex and technically challenging that it would not be practicable to reduce program risk to a level that would permit the use of a fixed-price type contract; and

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