Page:United States Statutes at Large Volume 124.djvu/3723

 124 STAT. 3697 PUBLIC LAW 111–350—JAN. 4, 2011 interpretations of the standards, designed to achieve uniformity and consistency in the cost accounting standards governing measurement, assignment, and allocation of costs to contracts with the Federal Government. (2) ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY.—The Administrator, after consultation with the Board, shall pre- scribe rules and procedures governing actions of the Board under this chapter. The rules and procedures shall require that any action to prescribe, amend, or rescind a standard or interpretation be approved by majority vote of the Board. (b) MANDATORY USE OF STANDARDS.— (1) SUBCONTRACT.— (A) DEFINITION.—In this paragraph, the term ‘‘sub- contract’’ includes a transfer of commercial items between divisions, subsidiaries, or affiliates of a contractor or sub- contractor. (B) WHEN STANDARDS ARE TO BE USED.—Cost accounting standards prescribed under this chapter are mandatory for use by all executive agencies and by contractors and subcontractors in estimating, accumulating, and reporting costs in connection with the pricing and administration of, and settlement of disputes concerning, all negotiated prime contract and subcontract procurements with the Fed- eral Government in excess of the amount set forth in sec- tion 2306a(a)(1)(A)(i) of title 10 as the amount is adjusted in accordance with applicable requirements of law. (C) NONAPPLICATION OF STANDARDS.—Subparagraph (B) does not apply to— (i) a contract or subcontract for the acquisition of a commercial item; (ii) a contract or subcontract where the price nego- tiated is based on a price set by law or regulation; (iii) a firm, fixed-price contract or subcontract awarded on the basis of adequate price competition without submission of certified cost or pricing data; or (iv) a contract or subcontract with a value of less than $7,500,000 if, when the contract or subcontract is entered into, the segment of the contractor or subcon- tractor that will perform the work has not been awarded at least one contract or subcontract with a value of more than $7,500,000 that is covered by the standards. (2) EXEMPTIONS AND WAIVERS BY BOARD.—The Board may— (A) exempt classes of contractors and subcontractors from the requirements of this chapter; and (B) establish procedures for the waiver of the require- ments of this chapter for individual contracts and sub- contracts. (3) WAIVER BY HEAD OF EXECUTIVE AGENCY.— (A) IN GENERAL.—The head of an executive agency may waive the applicability of the cost accounting standards for a contract or subcontract with a value of less than $15,000,000 if that official determines in writing that the segment of the contractor or subcontractor that will perform the work— (i) is primarily engaged in the sale of commercial items; and