PUBLIC LAW 107-314—DEC. 2, 2002 116 STAT. 2611 and exceptional case exceptions and waivers, described in paragraph (2) that were granted during that fiscal year. (2) The report for a fiscal year shall include— (A) with respect to any commercial item exception granted in the case of a contract, subcontract, or contract or subcontract modification that is expected to have a price of $15,000,000 or more, an explanation of the basis for the determination that the products or services to be purchased are commercial items, including an identification of the specific steps taken to ensure price reasonableness; and (B) with respect to any exceptional case exception or waiver granted in the case of a contract or subcontract that is expected to have a value of $15,000,000 or more, an explanation of the basis for the determination described in subsection (b), including an identification of the specific steps taken to ensure that the price was fair and reasonable. (e) DEFINITIONS. —In this section: (1) The term "exceptional case exception or waiver" means either of the following: (A) An exception pursuant to section 2306a(b)(l)(C) of title 10, United States Code, relating to submission of certified cost and pricing data. (B) A waiver pursuant to section 26(f)(5)(B) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(5)(B)), relating to the applicability of cost accounting standards to contracts and subcontracts. (2) The term "commercial item exception" means an exception pursuant to section 2306a(b)(l)(B) of title 10, United States Code, relating to submission of certified cost and pricing data. SEC. 818. TIMING OF CERTIFICATION IN CONNECTION WITH WAIVER OF SURVIVABILITY AND LETHALITY TESTING REQUIRE- MENTS. (a) CERTIFICATION FOR EXPEDITED PROGRAMS.— Paragraph (1) of subsection (c) of section 2366 of title 10, United States Code, is amended to read as follows: "(1) The Secretary of Defense may waive the application of the survivability and lethality tests of this section to a covered system, munitions program, missile program, or covered product improvement program if the Secretary determines that live-fire testing of such system or program would be unreasonably expensive and impractical and submits a certification of that determination to Congress— "(A) before Milestone B approval for the system or program; or "(B) in the case of a system or program initiated at— "(i) Milestone B, as soon as is practicable after the Milestone B approval; or "(ii) Milestone C, as soon as is practicable after the Milestone C approval.". (b) DEFINITIONS. —Subsection (e) of such section is amended by adding at the end the following new paragraphs: "(8) The term 'Milestone B approval' means a decision to enter into system development and demonstration pursuant to guidance prescribed by the Secretary of Defense for the management of Department of Defense acquisition programs.
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