116 STAT. 2936 PUBLIC LAW 107-347—DEC. 17, 2002 "(C) funds subsequently appropriated for pa5anents of costs of cancellation or termination, subject to the limitations in paragraph (3). "(2) The amount payable in the event of cancellation or termination of a share-in-savings contract shall be negotiated with the contractor at the time the contract is entered into. "(3)(A) Subject to subparagraph (B), the head of an executive agency may enter into shsire-in-savings contracts under this section in any given fiscal year even if funds Eire not made specificedly available for the full costs of cancellation or termination of the contract if funds are available and sufficient to make payments with respect to the first fiscal year of the contract and the following conditions are met regeirding the funding of cancellation and termination liability: "(i) The amount of unfunded contingent liability for the contract does not exceed the lesser of— "(I) 25 percent of the estimated costs of a cancellation or termination; or "(II) $5,000,000. "(ii) Unfunded contingent liability in excess of $1,000,000 has been approved by the Director of the Office of Management and Budget or the Director's designee. "(B) The aggregate number of shEO-e -in-savings contracts that may be entered into under subparagraph (A) by all executive agencies to which this chapter applies in a fiscsQ year may not exceed 5 in each of fiscal years 2003, 2004, and 2005. " (c) DEFINITIONS.—In this section: "(1) The term 'contractor' means a private entity that enters into a contract with an agency. "(2) The term 'savings' means— "(A) monetary savings to an agency; or "(B) savings in time or other benefits realized by the agency, including enhanced revenues (other than enhanced revenues from the collection of fees, taxes, debts, claims, or other amounts owed the Federal Government). "(3) The term *share-in-savings contract' means a contract under which— "(A) a contractor provides solutions for— "(i) improving the agency's mission-related or administrative processes; or "(ii) accelerating the achievement of agency missions; and "(B) the head of the agency pays the contractor an amount equal to a portion of the savings derived by the agency from— "(i) guiy improvements in mission-related or administrative processes that result from implementation of the solution; or "(ii) acceleration of achievement of agency missions. "(d) TERMINATION.— No share-in-savings contracts may be entered into under this section after September 30, 2005.". (c) DEVELOPMENT OF INCENTIVES. —The Director of the Office of Management and Budget shall, in consultation with the Committee on Governmental Affairs of the Senate, the Committee on Government Reform of the House of Representatives, and executive agencies, develop techniques to permit an executive agency to retain
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