Page:United States Statutes at Large Volume 99 Part 1.djvu/704

 99 STAT. 682

PUBLIC LAW 99-145—NOV. 8, 1985 (B) examine the relocation assistance provided by the Department of Defense incident to a permanent change of station by a member of the Armed Forces in locating housing at the member's new duty station and in disposing of housing at the member's old duty station. (3) The report shall be submitted within one year after the date of the enactment of this Act.

Report. Children and youth. Education.

10 USC 133 note.

(b) NEED FOR ASSISTANCE TO DEPENDENTS ENTERING N E W SECOND-

ARY SCHOOLS.—The Secretary of Defense shall submit to Congress a report recommending administrative and legislative action to assist families of members of the Armed Forces making a permanent change of station so that a dependent child who transfers between secondary schools with different graduation requirements is not subjected to unnecessary disruptions in education or inequitable, unduly burdensome, or duplicative education requirements. Such report shall be submitted within one year after the date of the enactment of this Act. SEC. 813. EFFECTIVE DATE

This title shall take effect on October 1, 1985. Defense Procurement Improvement Act of 1985. 10 USC 2301 note.

TITLE IX—PROCUREMENT POLICY REFORM AND OTHER PROCUREMENT MATTERS SEC. 901. SHORT TITLE

This title may be cited as the "Defense Procurement Improvement Act of 1985". PART A—PROGRAM MANAGEMENT MATTERS SEC. 911. REGULATIONS RELATING TO ALLOWABLE COSTS (a) REGULATION OF ALLOWABLE COSTS PAYABLE TO DEFENSE CON-

TRACTORS.—(1) Chapter 137 of title 10, United States Code, is amended by adding at the end thereof the following new section: 10 USC 2324.

Penalties.

Penalties.

"§ 2324. Allowable costs under defense contracts "(a)(1) The Secretary of Defense shall require that a covered contract provide that if the contractor submits to the Department of Defense a proposal for settlement of indirect costs incurred by the contractor for any period after such costs have been accrued and if that proposal includes the submission of a cost which is unallowable because the cost violates a cost principle in the Federal Acquisition Regulation or the Department of Defense Supplement to the Federal Acquisition Regulation, the cost shall be disallowed. "(2) If the Secretary determines by clear and convincing evidence that a cost submitted by a contractor in its proposal for settlement is unallowable under paragraph (1), the Secretary shall assess a penalty against the contractor in an amount equal to— "(A) the amount of the disallowed costs; plus "(B) interest (to be computed based on regulations issued by the Secretary) to compensate the United States for the use of any funds which a contractor has been paid in excess of the amount to which the contractor was entitled. "(b) If the Secretary determines that a proposal for settlement of indirect costs submitted by a contractor includes a cost determined to be unallowable in the case of such contractor before the submis-

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