S.Amdt. 2121

1. Adds SEC. 827. MODIFICATION OF AUTHORITIES RELATING TO UNDEFINITIZED CONTRACTUAL ACTIONS at the end of subtitle B of title VIII

   Adds a section

   Inserted: SEC. 827. MODIFICATION OF AUTHORITIES RELATING TO UNDEFINITIZED CONTRACTUAL ACTIONS.

   Inserted: (a) Approval Required for Certain Actions.--Section 2326 of title 10, United States Code, is amended--

   Inserted: (1) by redesignating subsections (b) through (g) as subsections (c) through (h), respectively; and

   Inserted: (2) by inserting after subsection (a) the following new subsection (b):

   Inserted: "(b) Approval Required for Certain Actions.--(1) A contracting officer may not take an action described in paragraph (2) unless the contracting officer has documented the need for the action in writing and received the approval of the head of the contracting activity.

   Inserted: "(2) An action described in this paragraph is an action as follows:

   Inserted: "(A) Entry into an undefinitized contractual action for or on behalf of the Department of Defense.

   Inserted: "(B) Obligation of more than 25 percent of the negotiated overall ceiling price for an undefinitized contractual action before the contractual terms, specifications, and price are definitized.

   Inserted: "(C) Obligation of more than 50 percent of the negotiated overall ceiling price for an undefinitized contractual action before the contractual terms, specifications, and price are definitized.".

   Inserted: (b) Allowable Profit.--Subsection (f) of such section, as redesignated by subsection (a)(1) of this section, is amended to read as follows:

   Inserted: "(f) Allowable Profit.--A contracting officer shall--

   Inserted: "(1) address the reduced cost risk to a contractor with respect to costs incurred pursuant to an undefinitized contractual action before the contractual terms, specifications, and price are definitized by allowing a profit or fee on such costs that does not exceed 50 percent of the profit or fee that would otherwise be allowable for such costs; and

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   Inserted: "(2) ensure that the profit allowed with respect to costs incurred during the performance of the remaining part of the contract reflects any reduced risk to the contractor with respect to such performance.".

   Inserted: (c) Scope of Undefinitized Contractual Actions.--Paragraph (1) of subsection (h) of such section, as so redesignated, is amended by striking "procurement action" and inserting "procurement action (including a contract, a task or delivery order issued against an existing contract, or a modification that changes the scope of an existing contract)".

   Inserted: (d) Conforming Amendment.--Paragraph (3) of subsection (c) of such section, as so redesignated, is amended by striking "subsection (g)" and inserting "subsection (h)".

   Inserted: (e) Annual Reports.--Not later than 30 days after the end of each of fiscal years 2008 through 2012, the Secretary of Defense shall submit to the congressional defense committees a report on undefinitized contractual actions that are not definitized within established time frames and not-to-exceed guidelines. Each report shall include the following:

   Inserted: (1) The number and total dollar value of undefinitized contractual actions entered into for or on behalf of the Department of Defense that have not been definitized--

   Inserted: (A) within 180 days of award;

   Inserted: (B) before 40 percent of the work is complete; and

   Inserted: (C) before 50 percent of the funds have been obligated.

   Inserted: (2) The actions that the Department of Defense has taken and plans to take to reduce the number and dollar value of undefinitized contractual actions in each of the categories listed in paragraph (1).

   Original wording

   At the end of subtitle B of title VIII, add the following:

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As printed