100 STAT. 3920
PUBLIC LAW 99-661—NOV. 14, 1986
relating to national security or public safety if the Secretary notifies the Committees on Armed Services of the Senate and House of Representatives of such waiver before the e n d of the 30-day period beginning on the date that the waiver is made. (d) ESTABLISHMENT O F REQUIREMENTS W I T H RESPECT TO UNDEFINITIZED CONTRACTUAL ACTIONS.—(I)(A) Chapter 137 of title
10, United States Code, is amended by adding after section 2325 (as added by section 907) the following new section: 10 USC 2326.
i; ri
" § 2326. Undefinitized contract u a l actions: restrictions "(a) IN GENERAL.—The head of a n agency may not enter into a n undefinitized contractual action unless the request to the h e a d of the agency for authorization of the contractual action includes a description of the anticipated effect on requirements of the military d e part m e n t concerned if a delay is incurred for purposes of determining contractual terms, specifications, and price before performance is begun under the contractual action. "(b) LIMITATIONS ON OBLIGATION AND EXPENDITURE OF FUNDS.—(1)
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A contracting officer of the Department of Defense may not enter into a n undefinitized contractual action unless the contractual action provides for a g r e e m e n t upon contractual term s, specifications, and price by the earlier of— , "(A) the e n d of the 180-day period beginning on the date on which the contractor submits a qualifying proposal to definitize the contractual term s, specifications, and price; or
"(B) the date on which the a m o u n t of funds obligated or ^ ^ expended under the contractual action is equal to more than 50 .' percent of the negotiated overall ceiling price for the contract u a l action. "(2) Except as provided in paragraph (3), the contracting officer for a n undefinitized contractual action may not expend with respect to such contractual action a n a m o u n t that is equal to more than 50 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price a r e definitized for such contractual action. "(3) If a contractor submits a qualifying proposal (as defined in subsection (g)) to definitize a n undefinitized contractual action before a n a m o u n t equal to more than 50 percent of the negotiated overall ceiling price is expended on such action, the contracting officer for such action may not expend with respect to such contractual action a n a m o u n t that is equal to more than 75 percent of the negotiated overall ceiling price until the contractual term s, specifications, and price a r e definitized for such contractual action. "(4) This subsection does not apply to a n undefinitized contractual action for the purchase of initial spares.
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"(c) INCLUSION OF N O N - U R G E N T REQUIREMENTS. — Requirements
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for spare part s and support equipment that a r e not needed on a n u r g e n t basis may not be included i n a n undefinitized contractual action for spare part s and support equipment that a r e needed on a n u r g e n t basis unless the head of the agency approves such inclusion a s being— "(1) good business practice; and • > "(2) in the best interests of the United States. "(d) MODIFICATION OF S C O P E. — The
scope
of a n
undefinitized
contractual action under which performance has begun may not be modified unless the head of the agency approves such modification as being—
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