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identities of the firms which those contractors have acquired or with which those contractors have combined since July 21, 1993, that qualify the contractors for such restructuring reimbursement.
(3) The Department's experience with business combinations for which the Department has agreed to allow restructuring costs since July 21, 1993, including the following:
(A) The estimated amount of costs associated with each restructuring that have been or will be treated as allowable costs under defense contracts, including the type and amounts of costs that would not have arisen absent the business combination.
(B) The estimated amount of savings associated with each restructuring that are expected to be achieved on defense contracts.
(C) The types of documentation relied on to establish that savings associated with each restructuring will exceed costs associated with the restructuring.
(D) Actual experience on whether savings associated with each restructuring are exceeding costs associated with the restructuring.
(E) Identification of any programmatic or budgetary disruption in the Department of Defense resulting from contractor restructuring.
(f) DEFINITION.-In this section, the term "business combination" includes a merger or acquisition.
(g) COMPTROLLER GENERAL REPORTS. (1) Not later than March 1, 1995, the Comptroller General shall submit to Congress a report on the adequacy of the regulations prescribed under subsection (b) with respect to
(A) whether such regulations are consistent with the purposes of this section, other applicable law, and the Federal Acquisition Regulation; and
(B) whether such regulations establish policies, procedures, and standards to ensure that restructuring costs are paid only when in the best interests of the United States.
(2) The Comptroller General shall report periodically to Congress on the implementation of the policy of the Department of Defense regarding defense industry restructuring.
(3) Not later than December 1, 1997, the Comptroller General shall submit to Congress a final report on the policy of the Department of Defense on defense industry restructuring, including any recommendations the Comptroller considers appropriate.
SEC. 819. DEFENSE ACQUISITION PILOT PROGRAM DESIGNATIONS.
The Secretary of Defense is authorized to designate the following defense acquisition programs for participation, to the extent provided in the Federal Acquisition Streamlining Act of 1994, in the defense acquisition pilot program authorized by section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10) U.S.C. 2430 note): 1
1 Section 809 of the National Defense Authorization Act for Fiscal Year 1991 (P.L. 101–510) is set forth beginning on page 399.
(1) The Fire Support Combined Arms Tactical Trainer program.
(2) The Joint Direct Attack Munition program.
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1994 (P.L. 103–160, approved Nov. 30, 1993)
DIVISION A-DEPARTMENT OF
TITLE VIII-ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS
Subtitle A-Defense Technology and Industrial Base, Reinvestment and Conversion
SEC. 802. [10 U.S.C. 2358 note] UNIVERSITY RESEARCH INITIATIVE SUPPORT PROGRAM.
(a) ESTABLISHMENT.-The Secretary of Defense, through the Director of Defense Research and Engineering, shall establish a University Research Initiative Support Program.
(b) PURPOSE.-Under the program, the Director shall award grants and contracts to eligible institutions of higher education to support the conduct of research and development relevant to requirements of the Department of Defense.
(c) ELIGIBILITY.-An institution of higher education is eligible for a grant or contract under the program if the institution has received less than a total of $2,000,000 in grants and contracts from the Department of Defense in the two fiscal years before the fiscal year in which the institution submits a proposal for such grant or contract.
(d) COMPETITION REQUIRED.-The Director shall use competitive procedures in awarding grants and contracts under the program.
(e) SELECTION PROCESS.-In awarding grants and contracts under the program, the Director shall use a merit-based selection process that is consistent with the provisions of section 2361(a) of title 10, United States Code. Such selection process shall require that each person selected to participate in such a merit-based selection process be a member of the faculty or staff of an institution of higher education that is a member of the National Association of State Universities and Land Grant Colleges or the American Association of State Colleges and Universities.
(f) REGULATIONS.-Not later than 90 days after the date of the enactment of this Act [Nov. 30, 1993], the Director shall prescribe regulations for carrying out the program.
(g) FUNDING. Of the amounts authorized to be appropriated under section 201, $20,000,000 shall be available for the University Research Initiative Support Program.
Subtitle D-Defense Acquisition Pilot
SEC. 831. REFERENCE TO DEFENSE ACQUISITION PILOT PROGRAM.
SEC. 833. [10 U.S.C. 2430 note] MISSION ORIENTED PROGRAM MANAGEMENT.
(a) MISSION-ORIENTED PROGRAM MANAGEMENT.-In the exercise of the authority provided in section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note), the Secretary of Defense should propose for one or more of the defense acquisition programs covered by the Defense Acquisition Pilot Program to utilize the concept of mission-oriented program management.
(b) POLICIES AND PROCEDURES.-In the case of each defense acquisition program covered by the Defense Acquisition Pilot Program, the Secretary of Defense should prescribe policies and procedures for the interaction of the program manager and the commander of the operational command (or a representative) responsible for the requirement for the equipment acquired, and for the interaction with the commanders of the unified and specified combatant commands. Such policies and procedures should include provisions for enabling the user commands to participate in acceptance testing.
SEC. 834. SAVINGS OBJECTIVES.
It is the sense of Congress that the Secretary of Defense, on the basis of the experience under the Defense Acquisition Pilot Program, should seek personnel reductions and other management and administrative savings that, by September 30, 1998, will achieve at least a 25-percent reduction in defense acquisition management costs below the costs of defense acquisition management during fiscal year 1993.
1Section 809 of such Act (P.L. 101-510) is set forth beginning on page 399. For other provisions related to the defense acquisition pilot program, see section 5064 of the Federal Acquisition Streamlining Act of 1994 (P.L. 103-355), set forth beginning on page 459, and section 819 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103–337), set forth beginning on page 351.
SEC. 835. PROGRAM PHASES AND PHASE FUNDING. [Repealed by section 5002 of P.L. 103-355]
SEC. 836. PROGRAM WORK FORCE POLICIES. [Repealed by section 5002 of
SEC. 837. [10 U.S.C. 2430 note] EFFICIENT CONTRACTING PROCESSES.
The Secretary of Defense shall take any additional actions that the Secretary considers necessary to waive regulations not required by statute that affect the efficiency of the contracting process within the Department of Defense. Such actions shall include, in the Secretary's discretion, developing methods to streamline the procurement process, streamlining the period for entering into contracts, and defining alternative techniques to reduce reliance on military specifications and standards, in contracts for the defense acquisition programs participating in the Defense Acquisition Pilot Program.
SEC. 838. [10 U.S.C. 2430 note] CONTRACT ADMINISTRATION: PERFORMANCE BASED CONTRACT MANAGEMENT.
For at least one participating defense acquisition program for which a determination is made to make payments for work in progress under the authority of section 2307 of title 10, United States Code, the Secretary of Defense should define payment milestones on the basis of quantitative measures of results.
SEC. 839. [10 U.S.C. 2430 note] CONTRACTOR PERFORMANCE ASSESSMENT.
(a) COLLECTION AND ANALYSIS OF PERFORMANCE INFORMATION.-The Secretary of Defense shall collect and analyze information on contractor performance under the Defense Acquisition Pilot Program.
(b) INFORMATION TO BE INCLUDED.-Information collected under subsection (a) shall include the history of the performance of each contractor under the Defense Acquisition Pilot Program contracts and, for each such contract performed by the contractor, a technical evaluation of the contractor's performance prepared by the program manager responsible for the contract.
Subtitle E-Other Matters
SEC. 841. [10 U.S.C. 2324 note] REIMBURSEMENT OF INDIRECT COSTS OF INSTITUTIONS OF HIGHER EDUCATION UNDER DEPARTMENT OF DEFENSE CONTRACTS.
(a) PROHIBITION.-The Secretary of Defense may not by regulation place a limitation on the amount that the Department of Defense may reimburse an institution of higher education for allowable indirect costs incurred by the institution for work performed for the Department of Defense under a Department of Defense contract unless that same limitation is applied uniformly to all other organizations performing similar work for the Department of Defense under Department of Defense contracts.
(b) WAIVER.—The Secretary of Defense may waive the application of the prohibition in subsection (a) in the case of a particular institution of higher education if the governing body of the institution requests the waiver in order to simplify the overall management by that institution of cost reimbursements by the Depart