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Code · BILL · 114th Congress · H.R. 1735 (Engrossed in House) — To authorize appropriations for fiscal year 2016 for military activities of the Department of Defense, for military c... · Sec. 824

Sec. 824. Modification to requirements relating to determination of contract type for major defense acquisition programs and major systems

260 words·~1 min read·/bill/114/hr/1735/eh/section-824·

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Section 2306 of title 10, United States Code, is amended by adding at the end the following new subsection: The Secretary of Defense shall ensure that the guidance of the Department of Defense relating to major defense acquisition programs, major systems, and major automated information systems includes a requirement that the acquisition strategy required under section 2431a of this title for such a program or system includes— a separate identification of the contract type for each acquisition phase of the program or system; and a justification of the contract type identified.
The contract type identified in accordance with paragraph (1)(A) may be— a fixed-price type contract (including a fixed-price incentive contract); or a cost-type contract (including a cost-plus-incentive-fee contract). The guidance referred to in paragraph
(1)shall require that the justification for the contract type selected explain— how the level of program risk in each acquisition phase relates to the contract type selected; how the use of incentives (especially cost incentives) in the contract, if any, supports the program or system objectives during each acquisition phase; and how the plans for the program or system to reduce risk enable the use of fixed-price elements in subsequent contracts. The guidance shall also specify that the use of contracts with target costs, target profits or fees, and profit or fee adjustment formulas can be an appropriate contract type. . Section 818 of the John Warner National Defense Authorization Act for Fiscal Year 2007 ( Public Law 109–364 ; 10 U.S.C. 2306 note) is amended by striking subsections (b), (c), (d), and (e).
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  • Pub. L. 109-364
  • 10 USC 2306
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Sec. 824
Modification to requirements relating to determination of contract type for major defense acquisition programs and major systems
Pub. L.Pub. L. 109-364
Cite10 USC 2306
Cites 2Cited by 0 across 0 sources
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