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 P.L. 103-355] 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 ment of Defense for contracts awarded by the Department to the institution. (c) DEFINITIONS.-In this section: (1) The term "allowable indirect costs" means costs that are generally considered allowable as indirect costs under regulations that establish the cost reimbursement principles applicable to an institution of higher education for purposes of Department of Defense contracts. (2) The term "institution of higher education" has the meaning given such term in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)). SEC. 843. [10 U.S.C. 2327] REPORTS BY DEFENSE CONTRACTORS OF DEALINGS WITH TERRORIST COUNTRIES. (a) REPORT REQUIREMENT.-(1) Whenever the Secretary of Defense proposes to enter into a contract with any person for an amount in excess of $5,000,000 for the provision of goods or services to the Department of Defense, the Secretary shall require that person (A) before entering into the contract, to report to the Secretary each commercial transaction which that person has conducted with the government of any terrorist country during the preceding three years or the period since the effective date of this section, whichever is shorter; and (B) to report to the Secretary each such commercial transaction which that person conducts during the course of the contract (but not after the date specified in subsection (h)) with the government of any terrorist country. (2) The requirement contained in paragraph (1)(B) shall be included in the contract with the Department of Defense. (3) This section does not apply with respect to a contract for the procurement of a commercial item (as defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12))). (b) REGULATIONS.-The Secretary of Defense shall prescribe such regulations as may be necessary to carry out this section. (c) ANNUAL REPORT TO CONGRESS.-The Secretary of Defense shall submit to the Congress each year by December 1 a report setting forth those persons conducting commercial transactions with terrorist countries that are included in the reports made pursuant to subsection (a) during the preceding fiscal year, the terrorist countries with which those transactions were conducted, and the nature of those transactions. The version of the report made available for public release shall exclude information exempt from public disclosure under section 552 of title 5, United States Code (commonly known as the Freedom of Information Act). (d) LIABILITY.-This section shall not be interpreted as imposing any liability on a person for failure to comply with the reporting requirement of subsection (a) if the failure to comply is caused solely by an act or omission of a third party. (e) PERSON DEFINED.-For purposes of this section, the term "person" means a corporate or other business entity proposing to enter or entering into a contract covered by this section. The term does not include an affiliate or subsidiary of the entity. (f) TERRORIST COUNTRY DEFINED.-A country shall be considered to be a terrorist country for purposes of a contract covered by this section if the Secretary of State has determined pursuant to law, as of the date that is 60 days before the date on which the contract is signed, that the government of that country is a government that has repeatedly provided support for acts of international terrorism. (g) EFFECTIVE DATE.-This section shall apply with respect to contracts entered into after the expiration of the 90-day period beginning on the date of the enactment of this Act [Nov. 30, 1993], or after the expiration of the 30-day period beginning on the date of publication in the Federal Register of the final regulations referred to in subsection (b), whichever is earlier. (h) TERMINATION.-This section expires on September 30, 1996. SEC. 844. [31 U.S.C. 1535] DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER AGENCIES. (a) REGULATIONS REQUIRED.-Not later than six months after the date of the enactment of this Act [Nov. 30, 1993], the Secretary of Defense shall prescribe regulations governing the exercise by the Department of Defense of the authority under section 1535 of title 31, United States Code, to purchase goods and services under contracts entered into or administered by another agency. (b) CONTENT OF REGULATIONS.-The regulations prescribed pursuant to subsection (a) shall (1) require that each purchase described in subsection (a) be approved in advance by a contracting officer of the Department of Defense with authority to contract for the goods or services to be purchased or by another official in a position specifically designated by regulation to approve such purchase; (2) provide that such a purchase of goods or services may be made only if (A) the purchase is appropriately made under a contract that the agency filling the purchase order entered into, before the purchase order, in order to meet the requirements of such agency for the same or similar goods or services; (B) the agency filling the purchase order is better qualified to enter into or administer the contract for such goods or services by reason of capabilities or expertise that is not available within the Department; (C) the agency or unit filling the order is specifically authorized by law or regulations to purchase such goods or services on behalf of other agencies; or (D) the purchase is authorized by an Executive order or a revision to the Federal Acquisition Regulation setting forth specific additional circumstances in which purchases referred to in subsection (a) are authorized; (3) prohibit any such purchase under a contract or other agreement entered into or administered by an agency not covered by the provisions of chapter 137 of title 10, United States Code, or title III of the Federal Property and Administrative Services Act of 1949 and not covered by the Federal Acquisi |