Page:United States Statutes at Large Volume 124.djvu/3826

 124 STAT. 3800 PUBLIC LAW 111–350—JAN. 4, 2011 § 4709. Implementation of electronic commerce capability (a) ROLE OF HEAD OF EXECUTIVE AGENCY.—The head of each executive agency shall implement the electronic commerce capa- bility required by section 2301 of this title. In implementing the capability, the head of an executive agency shall consult with the Administrator. (b) PROGRAM MANAGER.—The head of each executive agency shall designate a program manager to implement the electronic commerce capability for the agency. The program manager reports directly to an official at a level not lower than the senior procurement executive designated for the agency under section 1702(c) of this title. § 4710. Limitations on tiering of subcontractors (a) DEFINITION.—In this section, the term ‘‘executive agency’’ has the same meaning given in section 133 of this title. (b) REGULATIONS.—For executive agencies other than the Depart- ment of Defense, the Federal Acquisition Regulation shall— (1) require contractors to minimize the excessive use of sub- contractors, or of tiers of subcontractors, that add no or neg- ligible value; and (2) 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 man- aging lower-tier subcontracts). (c) COVERED CONTRACTS.—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 134 of this title). (d) RULE OF 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. (e) APPLICABILITY.—The Department of Defense shall continue to be subject to guidance on limitations on tiering of subcontractors issued by the Department of Defense pursuant to section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364, 10 U.S.C. 2324 note). § 4711. Linking of award and incentive fees to acquisition outcomes (a) DEFINITION.—In this section, the term ‘‘executive agency’’ has the same meaning given in section 133 of this title. (b) GUIDANCE FOR EXECUTIVE AGENCIES ON LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION OUTCOMES.—The Federal Acquisition Regulation shall provide executive agencies other than the Department of Defense with instructions, including definitions, on the appropriate use of award and incentive fees in Federal acquisition programs. (c) ELEMENTS.—The regulations under subsection (b) shall— (1) ensure that all new contracts using award fees link the fees to acquisition outcomes (which shall be defined in terms of program cost, schedule, and performance);