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

Subtitle E — Department of Defense Contractor Matters

DHNDAA Section

SEC. 844. REPORT ON USE OF OFF-SHORE SUBSIDIARIES BY DEFENSE CONTRACTORS.

(a) Report Required- Not later than one year after the date of the enactment of this Act, the Comptroller General shall provide a report to the Committees on Armed Services of the Senate and the House of Representatives on the use of off-shore subsidiaries by contractors of the Department of Defense.

(b) Matters Covered- The report shall comprehensively examine the rationale, implications, and costs and benefits for both the contractor and the Department of Defense in using off-shore subsidiaries, particularly in respect to--

(1) tax liability (including corporate income taxes and payroll taxes);

(2) legal liability;

(3) compliance with cost accounting standards;

(4) efficiency in contract performance;

(5) contract management and contract oversight; and

(6) such other areas as the Comptroller General determines appropriate.