Page:United States Statutes at Large Volume 124.djvu/4337

 124 STAT. 4311 PUBLIC LAW 111–383—JAN. 7, 2011 contractor, or are otherwise logically grouped for the purpose of analyzing information on price trends. (3) REQUIREMENT TO EXAMINE CAUSES OF ESCALATION.— An analysis conducted pursuant to paragraph (1) shall include, for any category in which significant escalation in prices is identified, a more detailed examination of the causes of esca- lation for such prices within the category and whether such price escalation is consistent across the Department of Defense. (4) REQUIREMENT TO ADDRESS UNJUSTIFIED ESCALATION.— The head of a Defense Agency or the Secretary of a military department shall take appropriate action to address any unjustified escalation in prices being paid for items procured by that agency or military department as identified in an analysis conducted pursuant to paragraph (1). (b) ANNUAL REPORT.—Not later than April 1 of each year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the analyses of price trends that were conducted for categories of covered supplies and equipment during the preceding fiscal year under the procedures implemented pursuant to paragraph (1). The report shall include a description of the actions taken to identify and address any unjustified price escalation for the categories of items. (c) DEFINITIONS.—In this section: (1) SUPPLIES AND EQUIPMENT.—The term ‘‘supplies and equipment’’ means items classified as supplies and equipment under the Federal Supply Classification System. (2) COVERED SUPPLIES AND EQUIPMENT.—The term ‘‘covered supplies and equipment’’ means all supplies and equipment purchased by the Department of Defense. The term does not include major weapon systems but does include individual parts and components purchased as spare or replenishment parts for such weapon systems. (d) SUNSET DATE.—This section shall not be in effect on and after April 1, 2015. SEC. 893. CONTRACTOR BUSINESS SYSTEMS. (a) IMPROVEMENT PROGRAM.—Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall develop and initiate a program for the improvement of con- tractor business systems to ensure that such systems provide timely, reliable information for the management of Department of Defense programs by the contractor and by the Department. (b) APPROVAL OR DISAPPROVAL OF BUSINESS SYSTEMS.—The program developed pursuant to subsection (a) shall— (1) include system requirements for each type of contractor business system covered by the program; (2) establish a process for reviewing contractor business systems and identifying significant deficiencies in such systems; (3) identify officials of the Department of Defense who are responsible for the approval or disapproval of contractor business systems; (4) provide for the approval of any contractor business system that does not have a significant deficiency; and (5) provide for— (A) the disapproval of any contractor business system that has a significant deficiency; and Deadline. 10 USC 2302 note.