Page:United States Statutes at Large Volume 102 Part 5.djvu/630

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PUBLIC LAW 100-000—MMMM. DD, 1988

102 STAT. 4636

PUBLIC LAW 100-700—NOV. 19, 1988

amount of the costs incurred, to the extent that such costs are determined to be otherwise allowable and allocable under the single Government-wide procurement regulation issued pursuant to section 4(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(4)(A)). "(B) Regulations issued for the purpose of subparagraph (A) shall provide for appropriate consideration of the complexity of procurement litigation, generally accepted principles governing the award of legal fees in civil actions involving the United States as a party, and such other factors as may be appropriate. "(3) In the case of a proceeding referred to in paragraph (1), contractor costs otherwise allowable as reimbursable costs under this subsection are not allowable if (A) such proceeding involves the same contractor misconduct alleged as the basis of another criminal, civil, or administrative proceeding, and (B) the costs of such other proceeding are not allowable under subsection (a). "(f) As used in this section: "(1) The term 'covered contract' means a contract for an amount more than $100,000 entered into by an executive agency other than a fixed-price contract without cost incentives. "(2) The term 'proceeding' includes an investigation. "(3) The term 'costs', with respect to a proceeding— "(A) means all costs incurred by a contractor, whether before or after the commencement of such proceeding; and "(B) includes— "(i) administrative and clerical expenses; "(ii) the cost of legal services, including legal services performed by an employee of the contractor; "(iii) the cost of the services of accountants and consultants retained by the contractor; and "(iv) the pay of directors, officers, and employees of the contractor for time devoted by such directors, officers, and employees to such proceeding. "(4) The term 'penalty' does not include restitution, reimbursement, or compensatory damages.". (2) The table of contents in the first section of such Act is amended by inserting after the item relating to section 305 the following new item: "306. Limitation on allowability of costs incurred by contractors in certain proceedings.". (b) AMENDMENTS TO TITLE 10.—Section 2324 of title 10, United

States Code, is amended— (1) in subsection (e)— (A) by striking out subparagraph (N) and inserting in lieu thereof the following: "(N) Costs incurred by a contractor in connection with any criminal, civil, or administrative proceeding commenced by the United States or a State, to the extent provided in subsection (k)."; (B) by striking out paragraph (2); and (C) by redesignating paragraph (3) as pars^aph (2); and (2) by striking out subsection (k) and inserting in lieu thereof the following: "(k)(1) Except as otherwise provided in this subsection, costs incurred by a contractor in connection with any criminal, civil, or administrative proceeding commenced by the United States or a