Sec. 811. LIMITATION ON USE OF COST-TYPE CONTRACTS
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## SEC. 811 LIMITATION ON USE OF COST-TYPE CONTRACTS **[**[10 U.S.C. 2430 note](/us/usc/t10/s2430)**]** ###
(a)Prohibition With Respect to Production of Major Defense Acquisition Programs Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall modify the acquisition regulations of the Department of Defense to prohibit the Department from entering into cost-type contracts for the production of major defense acquisition programs. ###
(b)Exception ####
(1)In general The prohibition under subsection
(a)shall not apply in the case of a particular cost-type contract if the service acquisition executive, in the case of a major defense acquisition program of the military department, or the Under Secretary of Defense for Acquisition and Sustainment, in the case of a Defense-wide or Defense Agency major defense acquisition program, provides written certification to the congressional defense committees that a cost-type contract is needed to provide a required capability in a timely and cost-effective manner. ####
(2)Scope of exception In any case for which the Under Secretary grants an exception under paragraph (1), the Under Secretary shall take affirmative steps to make sure that the use of cost-type pricing is limited to only those line items or portions of the contract where such pricing is needed to achieve the purposes of the exception. A written certification under paragraph
(1)shall be accompanied by an explanation of the steps taken under this paragraph. ###
(c)Definitions In this section: ####
(1)Major defense acquisition program The term “major defense acquisition program” has the meaning given the term in section 2430(a) of title 10, United States Code. ####
(2)Production of a major defense acquisition program The term “production of a major defense acquisition program” means the production and deployment of a major system that is intended to achieve an operational capability that satisfies mission needs, or any activity otherwise defined as Milestone C under Department of Defense Instruction 5000.02 or related authorities. ####
(3)Contract for the production of a major defense acquisition program The term “contract for the production of a major defense acquisition program”— #####
(A)means a prime contract for the production of a major defense acquisition program; and #####
(B)does not include individual line items for segregable efforts or contracts for the incremental improvement of systems that are already in production (other than contracts for major upgrades that are themselves major defense acquisition programs). ###
(d)Applicability The requirements of this section shall apply to contracts for the production of major defense acquisition programs entered into on or after October 1, 2014.
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Sec. 811
LIMITATION ON USE OF COST-TYPE CONTRACTS
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