Page:United States Statutes at Large Volume 98 Part 3.djvu/230
98 STAT. 2602
Ante, p. 2589.
PUBLIC LAW 98-525—OCT. 19, 1984
"(3) 'Design and manufacturing requirements' means structural and engineering plans and manufacturing particulars, including precise measurements, tolerances, materials, and finished product tests for the weapon system being produced. "(4) 'Essential performance requirements', with respect to a weapon system, means the operating capabilities or maintenance and reliability characteristics of the system that are determined by the Secretary of Defense to be necessary for the system to fulfill the military requirement for which the system is designed. "(5) 'Component' means any constituent element of a weapon system. "(6) 'Mature full-scale production' means the manufacture of all units of a weapon system after the manufacture of the first one-tenth of the eventual total production or the initial production quantity of such system, whichever is less. "(7) 'Initial production quantity' means the number of units of a weapon system contracted for in the first year of full-scale production. "(8) 'Head of an agency' has the meaning given that term in section 2302 of this title. "(b) Except as otherwise provided in this section, the head of an agency may not after January 1, 1985, enter into a contract for the production of a weapon system unless each prime contractor for the system provides the United States with written guarantees that— "(1) the item provided under the contract will conform to the design and manufacturing requirements specifically delineated in the production contract (or in any amendment to that contract); "(2) the item provided under the contract, at the time it is delivered to the United States, will be free from all defects in materials and workmanship; "(3) the item provided under the contract will conform to the essential performance requirements of the item as specifically delineated in the production contract (or in any amendment to that contract); and "(4) if the item provided under the contract fails to meet the guarantee specified in clause (1), (2), or (3), the contractor will at the election of the Secretary of Defense or as otherwise provided in the contract— "(A) promptly take such corrective action as may be necessary to correct the failure at no additional cost to the United States; or "(B) pay costs reasonably incurred by the United States in taking such corrective action. "(c) The head of the agency concerned may not require guarantees under subsection (b) from a prime contractor for a weapon system, or for a component of a weapon system, that is furnished by the United States to the contractor. "(d) Subject to subsection (e)(1), the Secretary of Defense may waive part or all of subsection (b) in the case of a weapon system, or component of a weapon system, if the Secretary determines— "(1) that the waiver is necessary in the interest of national defense; or "(2) that a guarantee under that subsection would not be costeffective.