Sec. 831. PREFERENCE FOR PERFORMANCE-BASED CONTRACT PAYMENTS

291 words·~1 min read·/statute-compilations/comps-13740/sec-831

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## SEC. 831 PREFERENCE FOR PERFORMANCE-BASED CONTRACT PAYMENTS ###

(a)In General Section 2307(b) of title 10, United States Code, is amended— ####

(1)in the subsection heading, by inserting “Preference for” before “Performance-based”; ####

(2)by redesignating paragraphs (1), (2), and

(3)as subparagraphs (A), (B), and (C), respectively; ####

(3)by striking “Wherever practicable, payment under subsection

(a)shall be made” and inserting “(1) Whenever practicable, payments under subsection

(a)shall be made using performance-based payments”; and ####

(4)by adding at the end the following new paragraphs: > > #### “(2) > > Performance-based payments shall not be conditioned upon costs incurred in contract performance but on the achievement of performance outcomes listed in paragraph (1). > > > #### “(3) > > The Secretary of Defense shall ensure that nontraditional defense contractors and other private sector companies are eligible for performance-based payments, consistent with best commercial practices. > > > #### “(4) > > > #####

(A)> > In order to receive performance-based payments, a contractor’s accounting system shall be in compliance with Generally Accepted Accounting Principles, and there shall be no requirement for a contractor to develop Government-unique accounting systems or practices as a prerequisite for agreeing to receive performance-based payments. > > > ##### “(B) > > Nothing in this section shall be construed to grant the Defense Contract Audit Agency the authority to audit compliance with Generally Accepted Accounting Principles.” > . ###

(b)Regulations **[**[10 U.S.C. 2307 note](/us/usc/t10/s2307)**]** Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Federal Acquisition Regulation Supplement to conform with section 2307(b) of title 10, United States Code, as amended by subsection (a).

Connections1 off-index

1 reference not yet in our index

10 USC 2307

Citation graph

cites case law

Sec. 831

PREFERENCE FOR PERFORMANCE-BASED CONTRACT PAYMENTS

Cite10 USC 2307

Cites 1Cited by 0 across 0 sources