Page:United States Statutes at Large Volume 95.djvu/1146

 95 STAT. 1120

Restrictions.

Multiyear contract.

Regulation and directive modifications. 10 USC 2301 note.

Repeal.

PUBLIC LAW 97-86—DEC. 1, 1981

year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from— "(A) appropriations originally available for the performance of the contract concerned; "(B) appropriations currently available for procurement of the type of property concerned, and not otherwise obligated; or "(C) funds appropriated for those payments. "(6) This subsection does not apply to contracts for the construction, alteration, or major repair of improvements to real property or contracts for the purchase of property to which section 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759) applies. "(7) This subsection does not apply to the Coast Guard or the National Aeronautics and Space Administration. "(8) For the purposes of this subsection, a multiyear contract is a contract for the purchase of property or services for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation pajTnent to be made to the contractor if such appropriations are not made.". (c) Section 139(c) of such title is amended— (1) by striking out "and" at the end of clause (2); (2) by striking out the period at the end of clause (3) and inserting in lieu thereof "; and"; and (3) by adding at the end thereof the following: "(4) the most efficient production rate and the most efficient acquisition rate consistent with the program priority established for such weapon system by the Secretary concerned.'. (d) Not later than the end of the 90-day period beginning on the date of the enactment of this Act— (1) the Secretary of Defense shall issue such modifications to existing regulations governing defense acquisitions as may be necessary to implement the amendments made by subsections (a), (b), and (c); and (2) the Director of the Office of Management and Budget shall issue such modifications to existing Office of Management and Budget directives as may be necessary to take into account the amendments made by subsections (a) and (b). (e) Section 810 of the Department of Defense Appropriation Authorization Act, 1976 (Public Law 94-106; 89 Stat. 539), is repealed. (f) Section 2311 of title 10, United States Code, is amended— (1) by striking out "(1)"; and (2) by striking out ", and (2) authorizing contracts in excess of three years under section 2306(g) of this title". RESEARCH GRANTS

SEC. 910. Section 2358(1) of title 10, United States Code, is amended by inserting ", or by grant to," after "by contract with". MODIFICATION OF DEFENSE CONTRACT PROFIT LIMITATION PROVISIONS

SEC. 911. (a)(1) Section 2382 of title 10, United States Code, is amended to read as follows:

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