Page:United States Statutes at Large Volume 99 Part 1.djvu/710

 99 STAT. 688

98 Stat. 2609.

10 USC 139 note.

PUBLIC LAW 99-145—NOV. 8, 1985 (1) shall issue proposed regulations to limit the prices that may be charged by defense contractors for spare parts; and (2) shall, if the Secretary determines that legislation is necessary to remedy any of such problems, submit to Congress proposed legislation to remedy those problems. (d) CONSTRUCTION OF SECTION.—This section does not supersede the requirements of section 1245 of the Department of Defense Authorization Act, 1985 (Public Law 98-525), the provisions of which the Secretary of Defense has failed to comply with as of July 25, 1985. SEC. 915. SHOULD-COST ANALYSES

(a) REPORT ON ANNUAL PLAN.—The Secretary of Defense shall submit to Congress an annual report setting forth the Secretary's plan for the performance during the next fiscal year of cost analyses for major defense acquisition programs for the purpose of determining how much the production of covered systems under such programs should cost. The report shall describe— (1) which covered systems the Secretary plans to apply such an analysis to; (2) which covered systems the Secretary does not plan to apply such an analysis to and, in each such case, the reasons for not applying such an analysis; and (3) which systems were determined not to be covered systems under a major defense acquisition program and the reasons for that determination. (b) COVERED SYSTEMS.—For the purposes of subsection (a), a system under a major defense acquisition program shall be considered to be a covered system if^ (1) a production contract for the system is to be awarded during the year following the next fiscal year using procedures other than full and open competition; (2) initial production of the system has already taken place; (3) the current plans for the Department of Defense include production of substantial quantities of identical or similar items in fiscal years beyond the next fiscal year; (4) the work to be performed under the contract is sufficiently defined to permit an effective analysis of what production of the system by the contractor should cost; and (5) major changes in the program are unlikely. (c) SUBMITTAL OF REPORT.—The report required by subsection (a) shall be submitted to the Committees on Armed Services of the Senate and the House of Representatives not later than the date on which the budget for the next fiscal year is submitted each year. (d) DEFINITION.—The term "major defense acquisition program" has the meaning given such term in section 139a(a)(l) of title 10, United States Code. (e) EFFECTIVE DATE.—This section shall apply to covered systems for which initial production funds are first appropriated for a fiscal year after fiscal year 1986. 10 USC 2307

SEC. 916. LIMITATIONS ON PROGRESS PAYMENTS

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(a) IN GENERAL.—The Secretary of Defense shall ensure that any payment for work in progress (including materials, labor, and other items) under a defense contract that provides for such payments is commensurate with the work, which meets standards of quality established under the contract, that has been accomplished.

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