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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle B Amendments to General Contracting Authorities, Procedures, and Limitations

P. L. 115-

House Conference Report. 115-404

SEC. 811. MODIFICATIONS TO COST OR PRICING DATA AND REPORTING
REQUIREMENTS.


(a) Modifications to Submissions of Cost or Pricing Data.--

(1) Title 10.--Subsection (a) of section 2306a of title 10, United States Code, is amended--

(A) by striking ``December 5, 1990'' each
place it appears and inserting ``June 30,
2018'';

(B) by striking ``December 5, 1991'' each
place it appears and inserting ``July 1,
2018'';

(C) by striking ``$100,000'' each place it
appears and inserting ``$750,000'';(

D) in paragraph (1)--

(i) in subparagraphs (A)(i),
(B)(i), (C)(i), (C)(ii), and (D)(i), by
striking ``$500,000'' and inserting
``$2,000,000''; and

(ii) in subparagraph (B)(ii), by
striking ``$500,000'' and inserting
``$750,000'';

(E) in paragraph (6), by striking
``December 5, 1990'' and inserting ``June 30,
2018''; and

(F) in paragraph (7), by striking ``to the
amount'' and all that follows through ``higher
multiple of $50,000.'' and inserting ``in
accordance with section 1908 of title 41.''.

(2) Title 41.--Section 3502 of title 41, United
States Code, is amended--

(A) in subsection (a)--

(i) by striking ``October 13,
1994'' each place it appears and
inserting ``June 30, 2018'';

(ii) by striking ``$100,000'' each
place it appears and inserting
``$750,000'';

(iii) in paragraphs (1)(A), (2)(A), (3)(A), (3)(B), and (4)(A), by striking ``$500,000'' and inserting
``$2,000,000''; and

(iv) in paragraph (2)(B), by
striking ``$500,000'' and inserting
``$750,000'';

(B) in subsection (f), by striking
``October 13, 1994'' and inserting ``June 30,
2018''; and

(C) in subsection (g), by striking ``to the
amount'' and all that follows through ``higher
multiple of $50,000.'' and inserting ``in
accordance with section 1908.''.

(b) Modification to Authority to Require Submission.--
Paragraph (1) of section 2306a(d) of title 10, United States
Code, is amended by striking ``the contracting officer shall
require submission of'' and all the follows through ``to the
extent necessary'' and inserting ``the offeror shall be
required to submit to the contracting officer data other than
certified cost or pricing data (if requested by the contracting
officer), to the extent necessary''.

(c) Comptroller General Review of Modifications to Cost or
Pricing Data Submission Requirements.--Not later than March 1,
2022, the Comptroller General of the United States shall submit
to the congressional defense committees a report on the
implementation and effect of the amendments made by subsections
(a) and (b).

(d) Requirements for Defense Contract Audit Agency
Report.--

(1) In general.--Section 2313a of title 10, United
States Code, is amended--

(A) in subsection (a)(2)--

(i) in subparagraph (A)--

(I) by inserting ``and
dollar value'' after
``number''; and

(II) by inserting ``, set
forth separately by type of
audit'' after ``pending'';

(ii) in subparagraph (C), by
inserting ``, both from the date of
receipt of a qualified incurred cost
submission and from the date the audit
begins'' after ``audit'';

(iii) by amending subparagraph (D)
to read as follows:

``(D) the sustained questioned costs, set
forth separately by type of audit, both as a
total value and as a percentage of the total
questioned costs for the audit;'';

(iv) by striking subparagraph (E);
and

(v) by inserting after subparagraph (D) the following new subparagraphs:

``(E) the total number and dollar value of
incurred cost audits completed, and the method
by which such incurred cost audits were
completed;

``(F) the aggregate cost of performing
audits, set forth separately by type of audit;

``(G) the ratio of sustained questioned
costs to the aggregate costs of performing
audits, set forth separately by type of audit;
and

``(H) the total number and dollar value of
audits that are pending for a period longer
than one year as of the end of the fiscal year
covered by the report, and the fiscal year in
which the qualified submission was received,
set forth separately by type of audit;''; and

(B) by adding at the end the following new
subsection:

``(d) Definitions.--

``(1) The terms `incurred cost audit' and
`qualified incurred cost submission' have the meaning given those terms in section 2313b of this title.

``(2) The term `sustained questioned costs' means questioned costs that were recovered by the Federal Government as a result of contract negotiations related
to such questioned costs.''.

(2) Exemption to report termination requirements.--
Section 1080(a) of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat.
1000; 10 U.S.C. 111 note), as amended by section
1061(j) of the National Defense Authorization Act for
Fiscal Year 2017 (Public Law 114-328; 130 Stat. 2405;
10 U.S.C. 111 note), does not apply to the report
required to be submitted to Congress under section
2313a of title 10, United States Code.

(e) Adjustment to Value of Covered Contracts for
Requirements Relating to Allowable Costs.--Subparagraph (B) of section 2324(l)(1) of title 10, United States Code, is amended by striking ``to the equivalent'' and all that follows through ``higher multiple of $50,000.'' and inserting ``in accordance with section 1908 of title 41.''.

Modifications to cost or pricing data and reporting requirements (sec. 811)

The House bill contained a provision (sec. 803) that would amend section 2306a of title 10, United States Code, and section 3502 of title 41, United States Code, to raise contract dollar thresholds that require submission of certified cost and pricing data. The threshold for non-competitive prime contracts, modifications of such contracts, subcontracts, and modifications of subcontracts would increase from $500,000 to $2.5 million, while the threshold for modifications to legacy contracts would increase from $100,000 to $750,000. The section would further amend section 2306a of title 10, United States Code, to require offerors to submit other than certified cost or pricing data sufficient to determine price reasonableness when certified cost or pricing data is not required. This section also would amend section 2313a of title 10, United States Code, to revise reporting requirements of the Defense Contract Audit Agency (DCAA) to provide more clarity on the cost effectiveness of different types of audits. It would require DCAA to report separately for incurred cost, forward pricing, and other audits with regard to the number and dollar value of audits completed and pending, sustained questioned costs, the costs of performing audits, and the return on investment of conducting audits. This section also would change the inflation calculation for the thresholds for certified cost and pricing data, as well as covered contracts related to allowable costs, to be consistent with the inflation methodology in section 1908 of title 41, United States Code.

The Senate amendment contained a similar provision (sec. 813) that would amend section 2306a of title 10, United States Code, to increase the threshold for certified cost or pricing data and truth in negotiation requirements to $1.0 million.

The Senate amendment contained another similar provision (sec. 894) that would establish a standard definition for the Defense Contract Audit Agency's (DCAA) reporting on its backlog. In future reporting, DCAA should include any individual incurred cost audit that has not been completed within 18 months after receipt of a qualified proposal as part of the incurred cost audit backlog.

The Senate recedes with an amendment that would eliminate the Senate provision related to DCAA reporting and would change the threshold for non-competitive prime contracts, modifications of such contracts, subcontracts, and modifications of subcontracts would increase from $500,000 to $2.0 million.

 

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