Page:United States Statutes at Large Volume 122.djvu/4574

 12 2 STA T .45 51 PUBLIC LA W 11 0– 41 7—O CT. 14 , 200 8(3)Thet e rm‘ ‘ in ter ag en cy ac qu i s iti o n ’ ’ means a p roce d ure b y w hich an e x ecuti v e agency needing supp l ies or services (the requesting agency) obtains them f rom another executive agency (the servicing agency) . The term includes acquisitions under section 15 35 of title 31 ,U nited S tates C ode (commonly referred to as the ‘‘ E conomy A ct’’), F ederal Supply Schedules above $ 5 0 0,000, and G overnmentwide acquisition contracts. ( 4 ) The term ‘‘multi - agency contract’’ means a tas k or delivery order contract established for use by more than one executive agency to obtain supplies and services, consistent with section 1535 of title 31, United States Code (commonly referred to as the ‘‘Economy Act’’). SEC.86 6. LIM I TA TI ON SONTIE R IN G O F S UB CONTRACTORS. (a) REGULATIONS . —N ot later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended, for executive agencies other than the D epartment of Defense, to minimi z e the excessive use by contractors of sub- contractors, or of tiers of subcontractors, that add no or negligible value, and to ensure that neither a contractor nor a subcontractor receives indirect costs or profit on work performed by a lower- tier subcontractor to which the higher-tier contractor or subcon- tractor adds no, or negligible, value (but not to limit charges for indirect costs and profit based on the direct costs of managing lower-tier subcontracts). (b) CO V E R E D CONTRA C TS.—This section applies to any cost- reimbursement type contract or task or delivery order in an amount greater than the simplified acquisition threshold (as defined by section 4 of the O ffice of Federal P rocurement Policy Act (41 U.S.C. 403)). (c) RULE O F CONSTRUCTION.—Nothing in this section shall be construed as limiting the ability of the Department of Defense to implement more restrictive limitations on the tiering of sub- contractors. (d) A P PLICA B ILIT Y .—The Department of Defense shall continue to be sub j ect to guidance on limitations on tiering of subcontractors issued by the Department pursuant to section 8 5 2 of the J ohn W arner National Defense Authorization Act for Fiscal Y ear 200 7 (Public L aw 10 9– 3 6 4 120 Stat. 2340). (e) E X ECUTIVE AGENCY DEFINED.— I n this section, the term ‘‘executive agency’’ has the meaning given such term in section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)). SEC. 86 7 . LIN K INGOFA W AR D AND INCENTI V EFEESTOAC Q UISITION OUTCOMES. (a) GUIDANCE FOR EXECUTIVE AGENCIES ON LIN K INGOFA W ARD AND INCENTIVE FEES TO AC Q UISITION OUTCO M ES.—Not later than 1 year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to provide executive agen- cies other than the Department of Defense with instructions, including definitions, on the appropriate use of award and incentive fees in Federal acquisition programs. (b) ELEMENTS.—The regulations under subsection (a) shall— (1) ensure that all new contracts using award fees link such fees to acquisition outcomes (which shall be defined in terms of program cost, schedule, and performance); Deadlin e .R e gu la t i o n s. Deadline.

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