Sec. 1831. COST OR PRICING DATA

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## SEC. 1831 COST OR PRICING DATA ###

(a)New Chapter **[**[10 U.S.C. 3701](/us/usc/t10/s3701)**]** 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 271 and inserting the following: > > ## “CHAPTER 271 **TRUTHFUL COST OR PRICING DATA (TRUTH IN NEGOTIATIONS)** > > **[**[10 U.S.C. 3701](/us/usc/t10/s3701)**]** > > > ## “SEC. 3701 Definitions > > **[**[10 U.S.C. 3701](/us/usc/t10/s3701)**]** > > > ## “SEC. 3702 Required cost or pricing data and certification > > **[**[10 U.S.C. 3702](/us/usc/t10/s3702)**]** > > > ## “SEC. 3703 Exceptions > > **[**[10 U.S.C. 3703](/us/usc/t10/s3703)**]** > > > ## “SEC. 3704 Cost or pricing data on below-threshold contracts > > **[**[10 U.S.C. 3704](/us/usc/t10/s3704)**]** > > > ## “SEC. 3705 Submission of other information > > **[**[10 U.S.C. 3705](/us/usc/t10/s3705)**]** > > > ## “SEC. 3706 Price reductions for defective cost or pricing data > > **[**[10 U.S.C. 3706](/us/usc/t10/s3706)**]** > > > ## “SEC. 3707 Interest and penalties for certain overpayments > > **[**[10 U.S.C. 3707](/us/usc/t10/s3707)**]** > > > ## “SEC. 3708 Right to examine contractor records” > > **[**[10 U.S.C. 3708](/us/usc/t10/s3708)**]** > . ###

(b)Transfer of Subsection

(h)of Section 2306a Subsection

(h)of section 2306a of title 10, United States Code, is transferred to section 3701 of such title, as added by subsection (a), inserted after the section heading, amended by striking the subsection designation and subsection heading, and further amended— ####

(1)by striking “this section” and inserting “this chapter”; and ####

(2)in paragraph (1), by striking “subsection (e)(1)(B)” and inserting “section 3706(a)(2) of this title”. ###

(c)Transfer of Subsection

(a)of Section 2306a ####

(1)Transfer Subsection

(a)of section 2306a of title 10, United States Code, is transferred to section 3702 of such title, as added by subsection (a), inserted after the section heading, and amended by redesignating paragraphs

(2)through

(7)as subsections

(b)through (g), respectively. ####

(2)Conforming internal redesignations and insertion of headings in new 3702(a) Such subsection (a), as so transferred and amended, is amended— #####

(A)by striking “Required Cost or Pricing Data and Certification.—(1) The head of” and inserting “When Required.—The head of”; #####

(B)by redesignating subparagraphs (A), (B), (C), and

(D)as paragraphs (1), (2), (3), and (4), respectively; #####

(C)in paragraph (1), as so redesignated— ######

(i)by inserting “Offeror for prime contract.—” before “An offeror”; and ######

(ii)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; #####

(D)in paragraph (2), as so redesignated, by inserting “Contractor.—” before “The contractor”; #####

(E)in paragraph (3), as so redesignated, by inserting “Offeror for subcontract.—” before “An offeror”; and #####

(F)in paragraph (4), as so redesignated, by inserting “Subcontractor.—” before “The subcontractor”. ####

(3)Conforming amendments in new section 3702(a) to references to chapter 137 Such subsection

(a)is further amended by striking “a prime contract under this chapter” each place it appears and inserting “a prime contract under a chapter 137 legacy provision”. ####

(4)Conforming internal redesignations and insertion of heading in new 3702(b) Subsection

(b)of section 3702, as transferred and redesignated by paragraph (1), is amended— #####

(A)by inserting “Certfication.—” before “A person required”; #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”; and #####

(C)by striking “subsection (c)” and inserting “section 3704 of this title”. ####

(5)Conforming internal redesignations and insertion of heading in new 3702(c) Subsection

(c)of section 3702, as transferred and redesignated by paragraph (1), is amended— #####

(A)by inserting “To Whom Submitted.—” before “Cost or pricing data”; #####

(B)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively; and #####

(C)in the matter preceding paragraph (1), as so redesignated— ######

(i)by striking “paragraph

(1)(or under subsection (c))” and inserting “subsection

(a)(or under section 3704 of this title)”; and ######

(ii)by striking “paragraph (2)” and inserting “subsection (b)”. ####

(6)Conforming internal redesignations and insertion of heading in new 3702(d) Subsection

(d)of section 3702, as transferred and redesignated by paragraph (1), is amended— #####

(A)by inserting “Applicability of Chapter.—” before “Except as provided under”; and #####

(B)by striking “subsection (b)” and inserting “section 3703 of this title”. ####

(7)Conforming internal redesignations and insertion of heading in new 3702(e) Subsection

(e)of section 3702, as transferred and redesignated by paragraph (1), is amended— #####

(A)by inserting “Subcontracts Not Affected by Waiver.—” before “A waiver of”; #####

(B)by striking “subsection (b)(1)(C)” and inserting “section 3703(a)(3) of this title”; #####

(C)by striking “paragraph (1)(C)” and inserting “subsection (a)(3)”; and #####

(D)by striking “that paragraph” and inserting “that subsection”. ####

(8)Conforming internal redesignations and insertion of heading in new 3702(f) Subsection

(f)of section 3702, as transferred and redesignated by paragraph (1), is amended— #####

(A)by inserting “Modifications to Prior Contracts.—”after the subsection designation; #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”; and **[**Subparagraph

(C)was repealed by section 1701(b)(10)(G)(i) of division A of Public Law 117–81.**]** #####

(D)by striking “subparagraphs (B)(ii) and (C)(ii) of paragraph (1)” and inserting “paragraphs (2)(B) and (3)(B) of subsection (a)”. ####

(9)Conforming internal redesignations and insertion of heading in new 3702(g) Subsection

(g)of section 3702, as transferred and redesignated by paragraph (1), is amended— #####

(A)by inserting “Adjustment of Amounts.—” before “Effective on”; and #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”. ###

(d)Transfer of Subsection

(b)of Section 2306a ####

(1)Transfer Subsection

(b)of section 2306a of title 10, United States Code, is transferred to section 3703 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation and subsection heading; and #####

(B)by redesignating paragraphs

(1)through

(6)as subsections

(a)through (f), respectively, and realigning those subsections flush to the left margin. ####

(2)Conforming internal redesignations in new 3703(a) Subsection

(a)of such section 3703, as so transferred and redesignated by paragraph (1), is amended— #####

(A)by redesignating subparagraphs (A), (B), (C), and

(D)as paragraphs (1), (2), (3), and (4), respectively; #####

(B)in the matter preceding paragraph (1), as so redesignated, by striking “under subsection (a)” and inserting “under section 3702 of this title”; #####

(C)in paragraph (1), as so redesignated, by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; and #####

(D)in paragraph (3), as so redesignated, by striking “this section” and inserting “this chapter”; and #####

(E)in paragraph (4), as so redesignated, by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively. ####

(3)Conforming internal redesignations in new 3703(b) Subsection

(b)of such section 3703, as so transferred and redesignated by paragraph (1), is amended— #####

(A)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively; #####

(B)in the matter preceding paragraph (1), as so redesignated— ######

(i)by striking “paragraph (1)(A) or (1)(B)” and inserting “paragraph

(1)or

(2)of subsection (a)”; and ######

(ii)by striking “subsection (a)” and inserting “section 3702 of this title”; and #####

(C)in paragraph (1), as so redesignated, by striking “paragraph (1)(A) or (1)(B)” and inserting “paragraph

(1)or

(2)of subsection (a)”. ####

(4)Conforming internal redesignations in new 3703(c) Subsection

(c)of such section 3703, as so transferred and redesignated by paragraph (1), is amended— #####

(A)by redesignating subparagraphs (A), (B), and

(C)as paragraphs (1), (2), and (3), respectively; #####

(B)in paragraph (1), as so redesignated— ######

(i)by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”; ######

(ii)by striking “subsection (a)(1)(A)(i)” and inserting “section 3702(a)(1)(A) of this title”; and ######

(iii)by striking “subsection (a)(7)” and inserting “section 3702(g) of this title”; #####

(C)in paragraph (2), as so redesignated, by striking “this paragraph” and inserting “this subsection”; and #####

(D)in paragraph (3), as so redesignated— ######

(i)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; ######

(ii)in the matter preceding subparagraph (A), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”; and ######

(ii)in subparagraph (A), as so redesignated, by striking “subparagraph

(A)or

(C)of paragraph (1)” and inserting “paragraph

(1)or

(3)of subsection (a)”. ####

(5)Conforming internal redesignations in new 3703(d) Subsection

(d)of such section 3703, as so transferred and redesignated by paragraph (1), is amended— #####

(A)by redesignating subparagraphs (A), (B), and

(C)as paragraphs (1), (2), and (3), respectively; #####

(B)in paragraph (1), as so redesignated, by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”; #####

(C)in paragraph (2), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”; and #####

(D)in paragraph (3), as so redesignated— ######

(i)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; and ######

(ii)in the matter preceding subparagraph (A), as so redesignated, by striking “subparagraph (B)” and inserting “paragraph (2)”. ####

(6)Conforming internal redesignations in new 3703(f) Subsection

(f)of such section 3703, as so transferred and redesignated by paragraph (1), is amended— #####

(A)by striking “subsection (a)” and inserting “section 3702 of this title”; and #####

(B)by striking “paragraph (1)(A)” and inserting “subsection (a)(1)”. ###

(e)Transfer of Subsection

(c)of Section 2306a ####

(1)Transfer Subsection

(c)of section 2306a of title 10, United States Code, is transferred to section 3704 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation and subsection heading; and #####

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

(3)as subsections (a), (b), and (c), respectively, and realigning those subsections flush to the left margin. ####

(2)Conforming internal redesignations in new 3704(a) Subsection

(a)of such section 3704, as so transferred and redesignated, is amended— #####

(A)by striking “paragraph (2)” and inserting “subsection (b)”; #####

(B)by striking “subsection (a)” and inserting “section 3702 of this title”; and #####

(C)by striking “under this subsection” and inserting “under this section”. ####

(3)Conforming internal redesignations in new 3704(b) Subsection

(b)of such section 3704, as so transferred and redesignated, is amended— #####

(A)by striking “under this paragraph” and inserting “under this subsection”; and #####

(B)by striking “subparagraph

(A)or

(B)of subsection (b)(1)” and inserting “paragraph

(1)or

(2)of section 3703(a) of this title”. ####

(4)Conforming internal redesignations in new 3704(c) Subsection

(c)of such section 3704, as so transferred and redesignated, is amended by striking “under this paragraph” and inserting “under this subsection”. ###

(f)Transfer of Subsection

(d)of Section 2306a ####

(1)Transfer Subsection

(d)of section 2306a of title 10, United States Code, is transferred to section 3705 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation and subsection heading; and #####

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

(3)as subsections (a), (b), and (c), respectively, and realigning those subsections flush to the left margin. ####

(2)Conforming internal redesignations in new 3705(a) Subsection

(a)of such section 3705, as so transferred and redesignated, is amended— #####

(A)by striking “under this section” and inserting “under this chapter”; and #####

(A)by striking “subsection (b)(1)(A)” and inserting “section 3703(a)(1) of this title”. ####

(3)Conforming internal redesignations in new 3705(b) Subsection

(b)of such section 3705, as so transferred and redesignated, is amended— #####

(A)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively; #####

(B)in paragraph (1), as so redesignated— ######

(i)by redesignating clauses

(i)through

(vi)as subparagraphs

(A)through (F), respectively; and ######

(ii)in the matter preceding subparagraph (A), as so redesignated, by striking “paragraph (1)” and inserting “subsection (a)”; and #####

(C)in paragraph (2), as so redesignated— ######

(i)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; and ######

(ii)in subparagraph (A), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”. ####

(4)Conforming internal redesignations in new 3705(c) Subsection

(c)of such section 3705, as so transferred and redesignated, is amended— #####

(A)by redesignating subparagraphs (A), (B), and

(C)as paragraphs (1), (2), and (3), respectively; and #####

(B)in the matter preceding paragraph (1), as so redesignated, by striking “under paragraph (1)” and inserting “under subsection (a)”. ###

(g)Transfer of Subsection

(e)of Section 2306a ####

(1)Transfer Subsection

(e)of section 2306a of title 10, United States Code, is transferred to section 3706 of such title, as added by subsection (a), inserted after the section heading, and amended— #####

(A)by striking the subsection designation and subsection heading; and #####

(B)by redesignating paragraphs (1), (2), (3), and

(4)as subsections (a), (b), (c), and (d), respectively. ####

(2)Conforming internal redesignations in new 3706(a) Subsection

(a)of such section 3706, as so transferred and redesignated, is amended— #####

(A)by striking “

(A)A prime contract ” and inserting > “ Provision Requiring Adjustment.— > > > #### “(1) In general > > A prime contract” > ; #####

(B)by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”; #####

(C)by redesignating subparagraph

(B)as paragraph (2); #####

(D)by inserting “What constitutes defective cost or pricing data.—” before “For the purposes”; and #####

(E)by striking “of this section” and inserting “of this chapter”. ####

(3)Conforming internal redesignations in new 3706(b) Subsection

(b)of such section 3706, as so transferred and redesignated, is amended— #####

(A)by inserting “Valid Defense.—” before “In determining for”; and #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”. ####

(4)Conforming internal redesignations in new 3706(c) Subsection

(c)of such section 3706, as so transferred and redesignated, is amended— #####

(A)by inserting “Invalid Defenses.—” before “It is not”; #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”; #####

(C)by redesignating subparagraphs (A), (B), (C), and

(D)as paragraphs (1), (2), (3), and (4), respectively; #####

(D)in paragraph (1), as so redesignated, by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; and #####

(E)in paragraph (4), as so redesignated, by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”. ####

(5)Conforming internal redesignations in new 3706(d) Subsection

(d)of such section 3706, as so transferred and redesignated, is amended— #####

(A)by striking “

(A)A contractor shall ” and inserting > “ Offsets.— > > > #### “(1) When allowed > > A contractor shall” > ; #####

(B)by striking “paragraph (1)” and inserting “subsection (a)”; #####

(C)by redesignating subparagraph

(B)as paragraph (2); #####

(D)in paragraph (1), as designated by subparagraph (A), by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; #####

(E)in subparagraph (B), as so redesignated by subparagraph (D)— ######

(i)by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”; and ######

(ii)by striking “subsection (a)(3)” and inserting “section 3702(c) of this title”; and #####

(F)in paragraph (2), as redesignated by subparagraph (C)— ######

(i)by striking “subparagraph (A)” and inserting “paragraph (1)”; ######

(ii)by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively; ######

(iii)in subparagraph (A), as so redesignated, by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”; and ######

(iv)in subparagraph (B), as so redesignated— ######

(I)by striking “subparagraph (A)(ii)” and inserting “paragraph (1)(B)”; and ######

(II)by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”. ###

(h)Transfer of Subsection

(f)of Section 2306a ####

(1)Transfer Subsection

(f)of section 2306a of title 10, United States Code, is transferred to section 3707 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended by redesignating paragraph

(2)as subsection (b). ####

(2)Conforming internal redesignations in new 3707(a) Subsection

(a)of such section 3707, as so transferred and redesignated, is amended— #####

(A)by striking “Interest and Penalties for Certain Overpayments.—(1)” and inserting “In General.—” #####

(B)by striking “this section” and inserting “this chapter”; #####

(C)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively; and #####

(D)in paragraph (1), as so redesignated, by redesignating clauses

(i)and

(ii)as subparagraphs

(A)and (B), respectively. ####

(3)Conforming internal redesignations in new 3707(b) Subsection

(b)of such section 3707, as so transferred and redesignated, is amended— #####

(A)by inserting “Liability Not Affected by Refusal to Submit Certification.—” before “Any liability”; #####

(B)by striking “this subsection” and inserting “this section”; and #####

(C)by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”. ###

(i)Transfer of Subsection

(g)of Section 2306a Subsection

(g)of section 2306a of title 10, United States Code, is transferred to section 3708 of such title, as added by subsection (a), inserted after the section heading, and amended— ####

(1)by striking the subsection redesignation and subsection heading; ####

(2)by striking “this section” and inserting “this chapter”; and ####

(3)by striking “section 2313(a)(2)” and inserting “section 3841(b)(2)”. ###

(j)Conforming Cross-reference Amendments ####

(1)Section 1608(b) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2273 note) is amended by striking “section 2306a” and inserting “chapter 271”. ####

(2)Section 866(b)(4) of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 2302 note) is amended— #####

(A)in subparagraph (A), by striking “section 2306a” and inserting “chapter 271”; and #####

(B)in subparagraph (B), by striking “section 2306a(d)” and inserting “section 3705”. ####

(3)Section 2343 of title 10, United States Code, is amended by striking “2306a, and 2313” and inserting “3701 through 3708, and 3841”. **[**Paragraphs

(4)and

(5)were repealed by section 1701(b)(10)(I)(ii) of division A of Public Law 117–81.**]** ####

(6)Section 9511a(d) of title 10, United States Code, is amended by striking “section 2306a” and inserting “chapter 271”. ####

(7)Section 890(a)(2) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 U.S.C. 2306a note) is amended by striking “section 2306a” and inserting “of chapter 271”. ###

(k)Chapter for Additional Cost or Pricing Provisions Such Part V is further amended by inserting after chapter 271, as added by subsection (a), the following new chapter: > > ## “CHAPTER 272 **OTHER PROVISIONS RELATING TO COST OR PRICING DATA** > > **[**[10 U.S.C. 3721](/us/usc/t10/s3721)**]** > > > ## “SEC. 3721 Evaluating the reasonableness of price: guidance and training > > **[**[10 U.S.C. 3721](/us/usc/t10/s3721)**]** > > **[**Reserved**]**. > > > ## “SEC. 3722 Grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards > > **[**[10 U.S.C. 3722](/us/usc/t10/s3722)**]** > > **[**Reserved**]**. > > > ## “SEC. 3723 Streamlining awards for innovative technology projects: pilot program > > **[**[10 U.S.C. 3723](/us/usc/t10/s3723)**]** > > **[**Reserved**]**. > > > ## “SEC. 3724 Risk-based contracting for smaller contract actions under truth in negotiations act: pilot program > > **[**[10 U.S.C. 3724](/us/usc/t10/s3724)**]** > > **[**Reserved**]**.” > . ###

(l)Tables of Chapters Amendments The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A (as added by section 801 of Public Law 115-232), of title 10, United States Code, are amended by striking the item relating to chapter 271 and inserting the following:" “271.Truthful Cost or Pricing Data (Truth in Negotiations) “272.Other Provisions Relating to Cost or Pricing Data ” ".

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