Page:United States Statutes at Large Volume 124.djvu/2965

 124 STAT. 2939 PUBLIC LAW 111–281—OCT. 15, 2010 ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. ‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), if a contractor submits a qualifying proposal to definitize an undefinitized contractual action before an amount that exceeds 50 percent of the negotiated overall ceiling price is obligated on such action, the contracting officer for such action may not obligate with respect to such contractual action an amount that exceeds 75 percent of the negotiated overall ceiling price until the contractual terms, specifica- tions, and price are definitized for such contractual action. ‘‘(3) WAIVER.—The Commandant may waive the application of this subsection with respect to a contract if the Commandant determines that the waiver is necessary to support— ‘‘(A) a contingency operation (as that term is defined in section 101(a)(13) of title 10); ‘‘(B) operations to prevent or respond to a transpor- tation security incident (as defined in section 70101(6) of title 46); ‘‘(C) an operation in response to an emergency that poses an unacceptable threat to human health or safety or to the marine environment; or ‘‘(D) an operation in response to a natural disaster or major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). ‘‘(4) LIMITATION ON APPLICATION.—This subsection does not apply to an undefinitized contractual action for the purchase of initial spares. ‘‘(d) INCLUSION OF NONURGENT REQUIREMENTS.—Requirements for spare parts and support equipment that are not needed on an urgent basis may not be included in an undefinitized contractual action by the Coast Guard for spare parts and support equipment that are needed on an urgent basis unless the Commandant approves such inclusion as being— ‘‘(1) good business practice; and ‘‘(2) in the best interests of the United States. ‘‘(e) MODIFICATION OF SCOPE.—The scope of an undefinitized contractual action under which performance has begun may not be modified unless the Commandant approves such modification as being— ‘‘(1) good business practice; and ‘‘(2) in the best interests of the United States. ‘‘(f) ALLOWABLE PROFIT.—The Commandant shall ensure that the profit allowed on an undefinitized contractual action for which the final price is negotiated after a substantial portion of the performance required is completed reflects— ‘‘(1) the possible reduced cost risk of the contractor with respect to costs incurred during performance of the contract before the final price is negotiated; and ‘‘(2) the reduced cost risk of the contractor with respect to costs incurred during performance of the remaining portion of the contract. ‘‘(g) DEFINITIONS.—In this section: ‘‘(1) UNDEFINITIZED CONTRACTUAL ACTION.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), the term ‘undefinitized contractual action’ means a