Sec. 821. Limitation on certain options for cost contracts
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/bill/118/s/4638/rs/section-821·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 3322 of title 10, United States Code, is amended by adding at the end the following new subsection: The contracting officer shall limit the number of low-rate initial production lots to not more than one for any production quantities procured using fixed priced-type options on a covered contract. The limitation in paragraph
(1)may be waived on a case-by-case basis by the concerned service acquisition executive or by the Secretary of Defense if the program is a joint program. In any case, this waiver authority shall not be delegated below the level of a service acquisition executive. In this subsection: The term covered contract means a cost reimbursement-type contract for the development of a major system. The term development shall have the same meaning as in section 4001 of title 10, United States Code. The term low-rate initial production shall have the same meaning as in section 4231 of title 10, United States Code. The term major system shall have the same meaning as in section 3041 of title 10, United States Code. . Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to conform with subsection
(d)of section 3322 of title 10, United States Code, as added by subsection
(a)of this section.