Page:United States Statutes at Large Volume 108 Part 4.djvu/683

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PUBLIC LAW 103-355 —OCT. 13, 1994 108 STAT. 3317 "(2) Any such subpoena, in the case of contumacy or refusal to obey, shall be enforceable by order of an appropriate United States district court. "(3) The authority provided by paragraph (1) may not be redelegated. "(4) The Director (or any successor official) shall submit an annual report to the Secretsuy of Defense on the exercise of such authority during the preceding year and the reasons why such authority was exercised in any instance. The Secretary shall forward a copy of each such report to the Committees on Armed Services of the Senate and House of Representatives. "(c) COMPTROLLER GENERAL AUTHORITY. —(1) Except as provided in paragraph (2), each contract awarded after using procedures other than sealed bid procedures shall provide that the Comptroller General and his representatives are authorized to examine any records of the contractor, or any of its subcontractors, that directly pertain to, and involve transactions relating to, the contract or subcontract. "(2) Paragraph (1) does not apply to a contract or subcontract with a foreign contractor or foreign subcontractor if the head of the agency concerned determines, with the concurrence of the Comptroller General or his designee, that the appKcation of that paragraph to the contract or subcontract would not be in the public interest. However, the concurrence of the Comptroller General or his designee is not required— "(A) where the contractor or subcontractor is a foreign government or agency thereof or is precluded by the laws of the country involved from making its records available for examination; and "(B) where the head of the agency determines, after taking into account the price and availabihty of the property and services from United States sources, that the public interest would be best served by not applying paragraph (1). "(3) Paragraph (1) may not be construed to require a contractor or subcontractor to create or maintain any record that the contractor or subcontractor does not maintain in the ordinary course of business or pursuant to another provision of law. " (d) LIMITATION ON PREAWARD AUDITS RELATING TO INDIRECT COSTS. —The head of an agency may not perform a preaward audit to evaluate proposed indirect costs under any contract, subcontract, or modification to be entered into in accordance with this chapter in any case in which the contracting officer determines that the objectives of the audit can reasonably be met by accepting the results of an audit conducted by any other department or agency of the Federal Government within one year preceding the date of the contracting officer's determination. "(e) LIMITATION. — The authority of the head of an agency under subsection (a), and the authority of the Comptroller General under subsection (c), with respect to a contract or subcontract shall expire three years sifter final payment under such contract or subcontract. "(f) INAPPLICABILITY TO CERTAIN CONTRACTS.—T his section does not apply to the following contracts: "(1) Contracts for utility services at rates not exceeding those established to apply uniformly to the public, plus any applicable reasonable connection charge.