Sec. 822. Modification of contracts to provide extraordinary relief due to inflation impacts
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The first section of Public Law 85–804 ( 50 U.S.C. 1431 ) is amended— by striking That the President and inserting the following: That the President ; by striking an amount in excess of $50,000 and inserting an amount in excess of $500,000 ; by striking any amount in excess of $25,000,000 and inserting an amount in excess of $150,000,000 ; and by inserting after subsection
(a)(as added by paragraph (1)) the following new subsections: Only amounts specifically provided by an appropriations Act for the purposes detailed in subsections
(c)and
(d)of this section may be used by the Secretary of Defense to carry out such subsections. The Secretary of Defense, acting pursuant to a Presidential authorization under subsection
(a)and in accordance with subsection (b)— may, notwithstanding subsection
(e)of section 2 of this Act ( 50 U.S.C. 1432(e) ), make an amendment or modification to an eligible contract when, due solely to economic inflation, the cost to a prime contractor of performing such eligible contract is greater than the price of such eligible contract; and may not request consideration from such prime contractor for such amendment or modification. A prime contractor may submit to the Secretary of Defense a request for an amendment or modification to an eligible contract pursuant to subsection
(a)when, due solely to economic inflation, the cost to a covered subcontractor of performing an eligible subcontract is greater than the price of such eligible subcontract. Such request shall include a certification that the prime contractor— will remit to such covered subcontractor the difference, if any, between the original price of such eligible contract and the price of such eligible contract if the Secretary of Defense makes an amendment or modification pursuant to subsection (a); and will not require such covered subcontractor to pay additional consideration or fees related to such amendment or modification. If a prime contractor does not make the request described in paragraph (2), a covered subcontractor may submit to a contracting officer of the Department of Defense a request for an amendment or modification to an eligible subcontract when, due solely to economic inflation, the cost to such covered subcontractor of performing such eligible subcontract is greater than the price of such eligible subcontract. Any adjustment or modification made pursuant to subsection
(c)to an eligible contract or an eligible subcontract shall— be contingent upon the continued performance, as applicable, of such eligible contract or such eligible subcontract; and account only for the actual cost of performing such eligible contract or such eligible subcontract, but may account for indirect costs of performance, as the Secretary of Defense determines appropriate. The authority under subsections
(c)and
(d)shall be effective during the period beginning on the date of the enactment of the National Defense Authorization Act for Fiscal Year 2023 and ending on December 31, 2023. In this section: The term covered subcontractor means a subcontractor who has entered into an eligible subcontract with a prime contractor. The term eligible contract means a contract awarded to a prime contractor by the Secretary of Defense pursuant to subsection (a). The term eligible subcontract means a subcontract made under an eligible contract to a covered subcontractor. . Not later than 90 days after the date of the enactment of an Act providing appropriations to carry out section 1 of Public Law 85–804 ( 50 U.S.C. 1431 ) (as added by subsection (a)), the Under Secretary of Defense for Acquisition and Sustainment shall issue guidance implementing the authority under subsections
(b)through
(d)of section 1 of Public Law 85–804 ( 50 U.S.C. 1431 ) (as added by subsection (a)).
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- Pub. L. 85-804
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Sec. 822
Modification of contracts to provide extraordinary relief due to inflation impacts
Pub. L.Pub. L. 85-804
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