Sec. 821. Modification to requirements relating to determination of contract type for major development programs
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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 and major automated information systems includes— a requirement that the acquisition strategy for such a program or system include identification of the contract type for development 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 relates to the contract type selected; and how the use of incentives (especially cost incentives) in the contract, if any, supports the objectives of the development program. The guidance shall also specify that the use of contracts with target costs, target profits or fees, and profit or fee adjustment formulas, during development, where applicable, is ordinarily in the interest of the Government. . 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). Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall modify the regulations of the Department of Defense regarding the determination of contract type for development programs to be consistent with the amendments made by this section.
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- Pub. L. 109-364
- 10 USC 2306
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Sec. 821
Modification to requirements relating to determination of contract type for major development programs
Pub. L.Pub. L. 109-364
Cite10 USC 2306
Cites 2Cited by 0 across 0 sources