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

P. L. 108-375

House Conference Report 108-767

SEC. 819. DELEGATIONS OF AUTHORITY TO MAKE DETERMINATIONS RELATING TO PAYMENT OF DEFENSE CONTRACTORS FOR BUSINESS RESTRUCTURING COSTS.

Section 2325(a)(2) of title 10, United States Code, is amended —

(1) by striking ‘‘paragraph (1) to an official’’ and all that follows and inserting ‘‘paragraph (1), with respect to a business combination, to an official of the Department of Defense—’’; and

(2) by adding at the end the following:

     ‘‘(A) below the level of an Assistant Secretary of Defense for cases in which the amount of restructuring costs is expected to exceed $25,000,000 over a 5-year period; or

     ‘‘(B) below the level of the Director of the Defense Contract Management Agency for all other cases.’’.

The Senate amendment contained a provision (sec. 814) that would permit the Secretary of Defense to delegate below the level of an Assistant Secretary of Defense the authority to pay defense contractors for restructuring costs associated with business combinations in cases where the amount of restructuring costs over a five year period is expected to be under $25.0 million.  In no case could this authority be delegated below the Director of the Defense Contract Management Agency.

The House bill contained no similar provision. 

The House recedes.

Senate Report 108-260