124 STAT. 3790 PUBLIC LAW 111–350—JAN. 4, 2011 (e) COSTS SPECIFICALLY AUTHORIZED BY EXECUTIVE AGENCY IN PROCEEDING COMMENCED BY STATE.—In the case of a proceeding referred to in subsection (b) that is commenced by a State, the executive agency that awarded the covered contract involved in the proceeding may allow the costs incurred by the contractor in connection with the proceeding as reimbursable costs if the executive agency determines, in accordance with the Federal Acquisition Regulation, that the costs were incurred as a result of— (1) a specific term or condition of the contract; or (2) specific written instructions of the executive agency. (f) OTHER ALLOWABLE COSTS.— (1) IN GENERAL.—Except as provided in paragraph (3), costs incurred by a contractor in connection with a criminal, civil, or administrative proceeding commenced by the Federal Government or a State in connection with a covered contract may be allowed as reimbursable costs under the contract if the costs are not disallowable under subsection (b), but only to the extent provided in paragraph (2). (2) AMOUNT OF ALLOWABLE COSTS.— (A) MAXIMUM AMOUNT ALLOWED.—The amount of the costs allowable under paragraph (1) in any case may not exceed the amount equal to 80 percent of the amount of the costs incurred, to the extent that the costs are determined to be otherwise allowable and allocable under the Federal Acquisition Regulation. (B) CONTENT OF REGULATIONS.—Regulations issued for the purpose of subparagraph (A) shall provide for appro- priate consideration of the complexity of procurement litiga- tion, generally accepted principles governing the award of legal fees in civil actions involving the Federal Govern- ment as a party, and other factors as may be appropriate. (3) WHEN OTHERWISE ALLOWABLE COSTS ARE NOT ALLOW- ABLE.—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) the proceeding involves the same contractor mis- conduct alleged as the basis of another criminal, civil, or administrative proceeding; and (B) the costs of the other proceeding are not allowable under subsection (b). CHAPTER 45—CONTRACT FINANCING Sec. 4501. Authority of executive agency. 4502. Payment. 4503. Security for advance payments. 4504. Conditions for progress payments. 4505. Payments for commercial items. 4506. Action in case of fraud. § 4501. Authority of executive agency An executive agency may— (1) make advance, partial, progress or other payments under contracts for property or services made by the agency; and (2) insert in solicitations for procurement of property or serv- ices a provision limiting to small business concerns advance or progress payments.
