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Code · BILL · 116th Congress · H.R. 6395 (Enrolled) — To authorize appropriations for fiscal year 2021 for military activities of the Department of Defense, for military c... · Sec. 1832

Sec. 1832. Allowable costs

2,518 words·~11 min read·/bill/116/hr/6395/enr/section-1832·

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Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 ( Public Law 115–232 ), is amended by striking chapter 273 and inserting the following: . Subchapter Sec. I. General 3741 II. Other Allowable Cost Provisions 3761 Sec. 3741. Definitions. 3742. Adjustment of threshold amount of covered contract. 3743. Effect of submission of unallowable costs. 3744. Specific costs not allowable. 3745.
Required regulations. 3746. Applicability of regulations to subcontractors. 3747. Contractor certification. 3748. Penalties for submission of cost known as not allowable. 3749. Burden of proof on contractor. 3750. Proceeding costs not allowable. In this subchapter: . Paragraph
(4)of section 2324(l) of title 10, United States Code, is transferred to section 3741 of such title, as added by subsection (a), inserted at the end, redesignated as paragraph (1), and amended by inserting before Compensation.— The term . Subparagraph
(A)of paragraph
(1)of such section 2324(l) is transferred to section 3741 of such title, as added by subsection (a), inserted after paragraph (1), as transferred and redesignated by paragraph (1), redesignated as paragraph (2), and amended by inserting before Covered contract.— The term . Paragraphs (6), (2), and
(3)of such section 2324(l) are transferred to section 3741 of such title, as added by subsection (a), inserted (in that order) after paragraph (2), as transferred and redesignated by paragraph (2), and redesignated as paragraphs (3), (4), and (5), respectively. The paragraphs transferred and redesignated by subparagraph
(A)are amended— by inserting before Fiscal year.— The term in paragraph (3), as so redesignated; by inserting before Head of the agency.— The term in paragraph (4), as so redesignated; and by inserting before Agency.— The term in paragraph (5), as so redesignated. Subparagraph
(B)of paragraph
(1)of such section 2324(l) is transferred to section 3742 of such title, as added by subsection (a), inserted after the section heading, and amended— by realigning the text 2 ems to the left; by striking the subparagraph designation; and by striking subparagraph
(A)and inserting section 3741(2) of this title . Subsections (a), (b), (c), and
(d)of section 2324 of title 10, United States Code, are transferred to section 3743 of such title, as added by subsection (a), and inserted after the section heading. Such subsection
(b)is amended— by striking and inserting “ Principle.—
(1)If the Principle.— If the ; and by realigning paragraph
(2)2 ems to the right and inserting before Cost determined to be unallowable before proposal submitted.— If the . Subsection
(e)of section 2324 of title 10, United States Code, is transferred to section 3744 of such title, as added by subsection (a), inserted after the section heading, and amended— by striking the subsection designation and subsection heading; by redesignating paragraphs (1), (2), (3), and
(4)as subsections (a), (d), (b), and (c), respectively; and by transferring subsection (d), as so redesignated, to the end of such section, after subsection (c), as so redesignated. Subsection
(a)of such section, as so redesignated, is amended— by inserting before Specific costs.— The following costs ; by redesignating subparagraphs
(A)through
(Q)as paragraphs
(1)through (17), respectively (including redesignating both subparagraphs
(P)as paragraph (16)); in paragraph (15), as so redesignated, by striking subsection
(k)and inserting section 3750 of this title ; and in paragraph (17), as so redesignated, by striking subsection (k)(2) and inserting section 3750(c) of this title . Subsection
(b)of such section, as so redesignated, is amended— by striking
(A)Pursuant to and inserting Waiver of severance pay restrictions for foreign nationals.— Pursuant to ; by redesignating subparagraphs
(B)and
(C)as paragraphs
(2)and (3), respectively; in paragraph (1), as designated by subparagraph (A)— by striking paragraph
(2)and inserting subsection
(d); by striking paragraphs (1)(M) and (1)(N) and inserting subsections (a)(13) and (a)(14) ; and by redesignating clauses (i), (ii), and
(iii)as subparagraphs (A), (B), and (C), respectively; in paragraph (2), as so redesignated by subparagraph (B)— by realigning that paragraph 2 ems to the right; by inserting before Solicitation to include statement about waiver.— The head of ; by redesignating clauses
(i)and
(ii)as subparagraphs
(A)and (B), respectively; and in subparagraph (A), as so redesignated, by striking subparagraph
(A)and inserting paragraph
(1); and in paragraph (3), as so redesignated by subparagraph (B)— by realigning that paragraph 2 ems to the right; by inserting before Determination to be made before contract awarded.— The head of ; and by striking subparagraph
(A)and inserting paragraph
(1). Subsection
(c)of such section, as so redesignated, is amended— by inserting before Establishment of definitions, exclusions, limitations, and qualifications.— The provisions of ; and by striking this section and inserting this subchapter . Subsection
(d)of such section, as so redesignated and transferred, is amended— by striking
(A)The Secretary and inserting Specific costs under military banking contracts relating to foreign nationals.— The Secretary ; by redesignating subparagraphs
(B)and
(C)as paragraphs
(2)and (3), respectively, and realigning those paragraph 2 ems to the right; in paragraph (1), as designated by subparagraph (A), by striking paragraphs (1)(M) and (1)(N) and inserting subsections (a)(13) and (a)(14) ; in paragraph (2), as so redesignated by subparagraph (B)— by inserting before Definitions.— In ; by striking subparagraph
(A)and inserting paragraph
(1); by redesignating clauses
(i)and
(ii)as subparagraphs
(A)and (B), respectively; in subparagraph (A), as so redesignated, by inserting before Military banking contract.— The term ; and in subparagraph (B), as so redesignated, by inserting before Mandated foreign national severance pay.— The term ; and in paragraph (3), as so redesignated by subparagraph (B)— by inserting after the paragraph designation; and Exception for foreign-owned financial institutions. — by striking Subparagraph
(A)and inserting Paragraph
(1). Subsection
(f)of section 2324 of title 10, United States Code, is transferred to section 3745 of such title, as added by subsection (a), inserted after the section heading, and amended— by striking the subsection designation and subsection heading; by redesignating paragraph
(1)as subsection (a); by designating the third sentence of such subsection as subsection (b); by redesignating paragraph
(2)as subsection (c); and by redesignating paragraphs
(3)and
(4)as paragraphs
(2)and (3), respectively, and realigning those paragraphs 2 ems to the right. Subsection
(a)of such section, as so redesignated, is amended by inserting before In general.— The Federal . Subsection
(b)of such section, as so designated by paragraph (1)(C), is amended— by inserting before Specific items.— The regulations ; and by redesignating subparagraphs
(A)through
(Q)as paragraphs
(1)through (17), respectively. Subsection
(c)of such section, as so redesignated by paragraph (1)(D), is amended— by striking The Federal and inserting Additional requirements.— The Federal ; in paragraph (2), as so redesignated by paragraph (1)(E), by inserting before Presence of contract auditor.— The Federal ; and in paragraph (3), as so redesignated by paragraph (1)(E), by inserting before Settlement to reflect amount of individual questioned costs.— The Federal . Subsection
(g)of section 2324 of title 10, United States Code, is transferred to section 3746 of such title, as added by subsection (a), inserted after the section heading, and amended— by striking the subsection designation and subsection heading; and by striking subsections
(e)and (f)(1) and inserting sections 3744 and 3745(a) and
(b)of this title . Subsection
(h)of section 2324 of title 10, United States Code, is transferred to section 3747 of such title, as added by subsection (a), inserted after the section heading, and amended— by striking the subsection designation and subsection heading; and by redesignating paragraphs
(1)and
(2)as subsections
(a)and (b), respectively. Subsection
(a)of such section, as so redesignated, is amended by inserting before Content and form.— A proposal . Subsection
(b)of such section, as so redesignated, is amended— by inserting before Waiver.— The head ; by striking paragraph
(1)and inserting subsection
(a); and by redesignating subparagraphs
(A)and
(B)as paragraphs
(1)and (2), respectively. Subsection
(i)of section 2324 of title 10, United States Code, is transferred to section 3748 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. Subsection
(j)of section 2324 of title 10, United States Code, is transferred to section 3749 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. Paragraph
(6)of Subsection
(k)of section 2324 of title 10, United States Code, is transferred to section 3750 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended by striking In this subsection and inserting . Definitions.— In this section Such subsection (a), as so transferred and redesignated, is further amended by redesignating subparagraphs (A), (B), and
(C)as paragraphs (3), (1), and (2), respectively, and transferring paragraph (3), as so redesignated to the end of such subsection so as to appear after paragraph (2), as so redesignated. Paragraph
(1)of such subsection, as so redesignated, is amended— by inserting before Costs.— The term ; by redesignating clauses
(i)and
(ii)as subparagraphs
(A)and (B), respectively; and in subparagraph (B), as so redesignated, by redesignating subclauses (I), (II), (III), and
(IV)as clauses (i), (ii), (iii), and (iv), respectively. Paragraph
(2)of such subsection, as so redesignated, is amended by inserting before Penalty.— The term . Paragraph
(3)of such subsection, as so redesignated and transferred, is amended by inserting before Proceedings.— The term . Subsection
(k)of section 2324 of title 10, United States Code (other than the portion transferred by paragraph (1)), is transferred to section 3750 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by paragraph (1), and amended by striking the subsection designation and heading and by redesignating paragraphs (1), (2), (3), (4), and
(5)as subsections (b), (c), (d), (e), and (f), respectively. Subsection
(b)of such section, as so transferred and redesignated, is amended— by inserting before In general.— Except as ; by striking this subsection and inserting this section ; by striking section 2409 and inserting section 4701 ; by striking if the proceeding
(A)relates to and inserting if the proceeding— relates to ; by striking in subparagraphs
(A)through
(C)of section 2409(a)(1) and inserting in section 4701(a)(1) ; by striking this title, and
(B)results in and inserting this title; and results in ; and by striking paragraph
(2)and inserting subsection
(c). Subsection
(c)of such section, as so transferred and redesignated, is amended— by inserting before Covered dispositions.— A disposition ; by striking paragraph (1)(B) and inserting subsection (b)(2) ; by striking paragraph
(1)each place it appears and inserting subsection
(b); by redesignating subparagraphs (A), (B), (C), (D), and
(E)as paragraphs (1), (2), (3), (4), and (5), respectively; in paragraph (3), as so redesignated, by striking section 2409 and inserting section 4701 ; in paragraph (4), as so redesignated, by redesignating clauses (i), (ii), and
(iii)as subparagraphs (A), (B), and (C), respectively; and in paragraph (5), as so redesignated, by striking subparagraph (A), (B), (C), or
(D)and inserting paragraphs (1), (2), (3), or
(4). Subsection
(d)of such section, as so transferred and redesignated, is amended— by inserting before Costs allowed by settlement agreement in proceeding commenced by United States.— In the case of ; by striking paragraph
(1)and inserting subsection
(b); and by striking such paragraph and inserting such subsection . Subsection
(e)of such section, as so transferred and redesignated, is amended— By inserting before Costs specifically authorized in proceeding commenced by State.— In the case of ; by striking paragraph
(1)and inserting subsection
(b); and by striking
(A)and
(B)and inserting
(1)and
(2), respectively. Subsection
(f)of such section, as so transferred and redesignated, is amended— by striking
(A)Except as provided in and inserting Other allowable costs.— Except as provided in ; by redesignating subparagraphs
(B)and
(C)as paragraphs
(2)and (3), respectively, and realigning those paragraphs 2 ems to the right; in paragraph (1), as designated by subparagraph (A)— by striking subparagraph
(C)and inserting paragraph
(3); by striking paragraph
(1)and inserting subsection
(b); and by striking subparagraph
(B)and inserting paragraph
(2); in paragraph (2), as redesignated by subparagraph (B)— by striking
(i)The amount of and inserting Amount of allowable costs.— The amount of ; by redesignating clause
(ii)as subparagraph (B); in subparagraph (A), as designated by clause (i), by striking subparagraph
(A)and inserting paragraph
(1); and in subparagraph (B), as redesignated by clause (ii)— by inserting before Content of regulations.— Regulations issued ; by striking clause
(i)and inserting subparagraph
(A); by striking consideration of the complexity of and inserting consideration of— the complexity of ; by striking procurement litigation, generally accepted and inserting “procurement litigation; generally accepted ; and by striking as a party and such other and inserting “as a party; and such other ; and in paragraph (3), as redesignated by subparagraph (B)— by inserting before When otherwise allowable costs are not allowable.— In the case of ; by striking subparagraph
(A)and inserting paragraph
(1); by striking under this paragraph and inserting under this subsection ; by striking not allowable if
(i)such proceeding and inserting not allowable if— such proceeding ; and by striking proceeding, and
(ii)the costs and inserting “proceeding; and the costs . Chapter 273 of title 10, United States Code, as added by subsection (a), is amended by adding at the end the following new subchapter: Sec. 3761. Restructuring costs. 3762. Independent research and development costs: allowable costs. 3763. Bid and proposal costs: allowable costs. 3764. Excessive pass-through charges. 3765. Institutions of higher education: reimbursement of indirect costs under Department of Defense contracts. . Sections 2325, 2372, and 2372a of title 10, United States Code, are transferred to subchapter II of chapter 273 of such title, as added by paragraph (1), inserted (in that order) after the table of sections, and redesignated as sections 3761, 3762, and 3763, respectively. Section 3761 of title 10, United States Code, as so transferred and redesignated, is amended— by redesignating subsection
(b)as subsection (c); in subsection (a)— by striking before
(1)The Secretary ; and by striking section 2324 of this title and inserting subchapter I : by redesignating paragraph
(2)as subsection (b); in subsection (b), as so redesignated— by inserting before Limitation on delegation.— The Secretary may not ; and by striking paragraph
(1)and inserting subsection
(a); and in each of such subsections
(a)and (b), by redesignating subparagraphs
(A)and
(B)as paragraphs
(1)and (2), respectively. Section 3763 of such title, as so transferred and redesignated by paragraph (2), is amended by striking section 2324(l) in subsection
(b)and inserting section 3741 .
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Sec. 1832
Allowable costs
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