Page:United States Statutes at Large Volume 124.djvu/3725

 124 STAT. 3699 PUBLIC LAW 111–350—JAN. 4, 2011 the beginning of the second fiscal year of the contractor or subcon- tractor after the standard becomes effective. (e) ACCOMPANYING MATERIAL.—Rules, regulations, cost accounting standards, and modifications thereof prescribed or amended under this chapter shall be accompanied by prefatory comments and by illustrations, if necessary. (f) IMPLEMENTING REGULATIONS.—The Board shall prescribe regu- lations for the implementation of cost accounting standards pre- scribed or interpreted under this section. The regulations shall be incorporated into the Federal Acquisition Regulation and shall require contractors and subcontractors as a condition of contracting with the Federal Government to— (1) disclose in writing their cost accounting practices, including methods of distinguishing direct costs from indirect costs and the basis used for allocating indirect costs; and (2) agree to a contract price adjustment, with interest, for any increased costs paid to the contractor or subcontractor by the Federal Government because of a change in the contrac- tor’s or subcontractor’s cost accounting practices or a failure by the contractor or subcontractor to comply with applicable cost accounting standards. (g) NONAPPLICABILITY OF CERTAIN SECTIONS OF TITLE 5.—Func- tions exercised under this chapter are not subject to sections 551, 553 to 559, and 701 to 706 of title 5. § 1503. Contract price adjustment (a) DISAGREEMENT CONSTITUTES A DISPUTE.—If the Federal Government and a contractor or subcontractor fail to agree on a contract price adjustment, including whether the contractor or subcontractor has complied with the applicable cost accounting standards, the disagreement will constitute a dispute under chapter 71 of this title. (b) AMOUNT OF ADJUSTMENT.—A contract price adjustment under- taken under section 1502(f)(2) of this title shall be made, where applicable, on relevant contracts between the Federal Government and the contractor that are subject to the cost accounting standards so as to protect the Federal Government from payment, in the aggregate, of increased costs, as defined by the Cost Accounting Standards Board. The Federal Government may not recover costs greater than the aggregate increased cost to the Federal Govern- ment, as defined by the Board, on the relevant contracts subject to the price adjustment unless the contractor made a change in its cost accounting practices of which it was aware or should have been aware at the time of the price negotiation and which it failed to disclose to the Federal Government. (c) INTEREST.—The interest rate applicable to a contract price adjustment is the annual rate of interest established under section 6621 of the Internal Revenue Code of 1986 (26 U.S.C. 6621) for the period. Interest accrues from the time payments of the increased costs were made to the contractor or subcontractor to the time the Federal Government receives full compensation for the price adjustment. § 1504. Effect on other standards and regulations (a) PREVIOUSLY EXISTING STANDARDS.—All cost accounting stand- ards, waivers, exemptions, interpretations, modifications, rules, and regulations prescribed by the Cost Accounting Standards Board