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DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1986
(P.L. 99-145, approved Nov. 8, 1985)
TITLE IX-PROCUREMENT POLICY REFORM AND OTHER PROCUREMENT MATTERS
SEC. 901. [10 U.S.C. 2301 note] SHORT TITLE
This title may be cited as the "Defense Procurement Improvement Act of 1985".
PART A-PROGRAM MANAGEMENT MATTERS
SEC. 913. [10 U.S.C. 2301 note] MINIMUM PERCENTAGE OF COMPETITIVE PROCUREMENTS
(a) ANNUAL GOAL.-The Secretary of Defense shall establish for each fiscal year a goal for the percentage of defense procurements to be made during that year (expressed in total dollar value of contracts entered into) that are to be competitive procurements. (b) DEFINITION.-For the purposes of this section, the term "competitive procurements" means procurements made by the Department of Defense through the use of competitive procedures, as defined in section 2304 of title 10, United States Code.
PART C-FALSE CLAIMS, DEBARMENT, BURDEN OF PROOF, AND RELATED MATTERS
SEC. 931. [18 U.S.C. 287 note] INCREASED PENALTIES FOR FALSE CLAIMS IN DEFENSE PROCUREMENT
(a) CRIMINAL FINES.-Notwithstanding sections 287 and 3623 of title 18, United States Code, the maximum fine that may be imposed under such section for making or presenting any claim upon or against the United States related to a contract with the Department of Defense, knowing such claim to be false, fictitious, or fraudulent, is $1,000,000.
(b) CIVIL PENALTIES.-Notwithstanding section 3729 of title 31, United States Code, the amount of the liability under that section in the case of a person who makes a false claim related to a contract with the Department of Defense shall be a civil penalty of $2,000, an amount equal to three times the amount of the damages the Government sustains because of the act of the person, and costs of the civil action.
(c) EFFECTIVE DATE.-Subsections (a) and (b) shall be applicable to claims made or presented on or after the date of the enactment of this Act [Nov. 8, 1985].
DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1985
(P.L. 98-525, approved Oct. 19, 1984)
TITLE XII-PROCUREMENT POLICY REFORM AND OTHER PROCUREMENT MATTERS
PART A SHORT TITLE AND CONGRESSIONAL FINDINGS
SEC. 1201. [10 U.S.C. 2301 note] This title may be cited as the "Defense Procurement Reform Act of 1984".
CONGRESSIONAL FINDINGS AND POLICY
SEC. 1202. [10 U.S.C. 2301 note] The Congress finds that recent disclosures of excessive payments by the Department of Defense for replenishment parts have undermined confidence by the public and Congress in the defense procurement system. The Secretary of Defense should make every effort to reform_procurement practices relating to replenishment parts. Such efforts should, among other matters, be directed to the elimination of excessive pricing of replenishment spare parts and the recovery of unjustified payments. Specifically, the Secretary should
(1) direct that officials in the Department of Defense refuse to enter into contracts unless the proposed prices are fair and reasonable;
(2) continue and accelerate ongoing efforts to improve defense contracting procedures in order to encourage effective competition and assure fair and reasonable prices;
(3) direct that replenishment parts be acquired in economic order quantities and on a multiyear basis whenever feasible, practicable, and cost effective;
(4) direct that standard or commercial parts be used whenever such use is technically acceptable and cost effective; and (5) vigorously continue reexamination of policies relating to acquisition, pricing, and management of replenishment parts and of technical data related to such parts.
PART E-TEMPORARY PROVISIONS, REPORTS, AND EFFECTIVE DATES
PLANS FOR MANAGEMENT OF TECHNICAL DATA AND COMPUTER CAPABILITY IMPROVEMENTS
SEC. 1252. [10 U.S.C. 2431 note] (a)(1) Not later than one year after the date of the enactment of this Act [October 19, 1984], the
Secretary of Defense shall develop a plan for an improved system for the management of technical data relating to any major system of the Department of Defense. At a minimum, the management plan shall address procedures for
(A) indexing, storing, and updating items of technical data in a system;
(B) developing, to the maximum extent practicable, a centralized system to identify the repository within the department responsible for technical data relating to an item and the extent of the data on file in that repository with respect to that item; and
(C) assuring that those parties otherwise entitled to receive technical data will have timely access to complete and current technical data.
(2) Not later than 5 years after the date of the enactment of this Act [October 19, 1984], the Secretary shall complete implementation of the management plan required to be developed by paragraph (1).
(3) Not later than 18 months after the date of the enactment of this Act [October 19, 1984], the Comptroller General of the United States shall transmit to Congress a report evaluating the plan developed by the Secretary of Defense under paragraph (1).
(b) Not later than 180 days after the date of the enactment of this Act [October 19, 1984], the Secretary of Defense shall transmit to the Committees on Armed Services of the Senate and House of Representatives a plan to improve substantially the computer capability of each of the military departments and of the Defense Logistics Agency to store and access rapidly data that is needed for the efficient procurement of supplies. The plan shall provide for a computer data base that includes price and procurement history, item identification, sources of supply, and other relevant information. The plan shall specify a schedule for the implementation of the improvements, the projected cost of implementation of the improvements, and such other recommendations as the Secretary of Defense considers appropriate to accomplish the improvements.
DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1984
(Public Law 98-94, approved Sept. 24, 1983) TITLE XII-GENERAL PROVISIONS
PART B-DEPARTMENT OF DEFENSE MANAGEMENT MATTERS
REGULATIONS RELATING TO INCREASES IN PRICES FOR SPARE PARTS AND REPLACEMENT EQUIPMENT
SEC. 1215. [10 U.S.C. 2452 note] (a) Not later than 120 days after the date of the enactment of this Act [September 24, 1983], the Secretary of Defense shall issue regulations which—
(1) except as provided in clause (2), prohibit the purchase of any spare part or replacement equipment when the price of such part or equipment, since a time in the past specified by the Secretary (in terms of days or months) or since the most recent purchase of such part or equipment by the Department of Defense, has increased in price by a percentage in excess of a percentage threshold specified by the Secretary in such regulations, and
(2) permit the purchase of such spare part or equipment (notwithstanding the prohibition contained in clause (1)) if the contracting officer for such part or equipment certifies in writing to the head of the procuring activity before the purchase is made that
(A) such officer has evaluated the price of such part or equipment and concluded that the increase in the price of such part or equipment is fair and reasonable, or
(B) the national security interests of the United States require that such part or equipment be purchased despite the increase in price of such part or equipment. (b)(1) The Secretary shall publish the regulations issued under this section in the Federal Register.
(2) The Secretary may provide in such regulations for the waiver of the prohibition in subsection (a)(1) and compliance with the requirements of subsection (a)(2) in the case of a purchase of any spare part or replacement equipment made or to be made through competitive procedures.
(c) Not less than 30 days before the Secretary publishes such regulations in accordance with subsection (b), the Secretary shall submit the text of the proposed regulations to the Committees on Armed Services of the Senate and House of Representatives.