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(2) In this section:

(A) The term "congressional defense committees"

means

(i) the Committee on Armed Services and the Committee on Appropriations of the Senate; and

(ii) the Committee on Armed Services and the Committee on Appropriations of the House of Representatives.

(B) The term "end item" means a production product assembled, completed, and ready for issue or deployment. (C) The term "head of an agency" means the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force.

(Added P.L. 107-314, § 801(a)(1), Dec. 2, 2002, 116 Stat. 2600.)

§ 2309. Allocation of appropriations

(a) Appropriations available for procurement by an agency named in section 2303 of this title may, through administrative allotment, be made available for obligation for procurement by any other agency in amounts authorized by the head of the allotting agency and without transfer of funds on the books of the Department of the Treasury.

(b) A disbursing official of the allotting agency may make any disbursement chargeable to an allotment under subsection (a) upon a voucher certified by an officer or civilian employee of the procuring agency.

(Aug. 10, 1956, ch. 1041, 70A Stat. 132; Sept. 13, 1982, P.L. 97-258, § 2(b)(1)(B), 96 Stat. 1052.) § 2310. Determinations and decisions

(a) INDIVIDUAL OR CLASS DETERMINATIONS AND DECISIONS AUTHORIZED.-Determinations and decisions required to be made under this chapter by the head of an agency may be made for an individual purchase or contract or, except to the extent expressly prohibited by another provision of law, for a class of purchases or contracts. Such determinations and decisions are final.

(b) WRITTEN FINDINGS REQUIRED.-(1) Each determination or decision under section 2306(g)(1), 2307(d), or 2313(c)(2)(B) of this title shall be based on a written finding by the person making the determination or decision. The finding shall set out facts and circumstances that support the determination or decision.

(2) Each finding referred to in paragraph (1) is final. The head of the agency making such finding shall maintain a copy of the finding for not less than 6 years after the date of the determination or decision.

(Aug. 10, 1956, ch. 1041, 70A Stat. 132; Aug. 28, 1958, P.L. 85-800, § 10, 72 Stat. 967; Sept. 10, 1962, P.L. 87-653, § 1(f), 76 Stat. 529; Sept. 27, 1966, P.L. 89–607, § 1(1), 80 Stat. 850; July 5, 1968, P.L. 90-378, §2, 82 Stat. 290; July 18, 1984, P.L. 98-369, § 2725, 98 Stat. 1194; Nov. 8, 1985, P.L. 99-145, §1303(a)(16), 99 Stat. 739; revised in its entirety P.L. 103-355, § 1504, Oct. 13, 1994, 108 Stat. 3297.)

§ 2311. Assignment and delegation of procurement functions and responsibilities

(a) IN GENERAL.-Except to the extent expressly prohibited by another provision of law, the head of an agency may delegate, sub

ject to his direction, to any other officer or official of that agency, any power under this chapter.

(b) PROCUREMENTS FOR OR WITH OTHER AGENCIES.-Subject to subsection (a), to facilitate the procurement of property and services covered by this chapter by each agency named in section 2303 of this title for any other agency, and to facilitate joint procurement by those agencies

(1) the head of an agency may delegate functions and assign responsibilities relating to procurement to any officer or employee within such agency;

(2) the heads of two or more agencies may by agreement delegate procurement functions and assign procurement responsibilities from one agency to another of those agencies or to an officer or civilian employee of another of those agencies; and

(3) the heads of two or more agencies may create joint or combined offices to exercise procurement functions and responsibilities.

(c) APPROVAL OF TERMINATIONS AND REDUCTIONS OF JOINT ACQUISITION PROGRAMS. (1) The Secretary of Defense shall prescribe regulations that prohibit each military department participating in a joint acquisition program approved by the Under Secretary of Defense for Acquisition, Technology, and Logistics from terminating or substantially reducing its participation in such program without the approval of the Under Secretary.

(2) The regulations shall include the following provisions:

(A) A requirement that, before any such termination or substantial reduction in participation is approved, the proposed termination or reduction be reviewed by the Joint Requirements Oversight Council of the Department of Defense.

(B) A provision that authorizes the Under Secretary of Defense for Acquisition, Technology, and Logistics to require a military department whose participation in a joint acquisition program has been approved for termination or substantial reduction to continue to provide some or all of the funding necessary for the acquisition program to be continued in an efficient manner.

(Aug. 10, 1956, ch. 1041, 70A Stat. 132; Aug. 28, 1958, P.L. 85-800, § 11, 72 Stat. 967; Sept. 10, 1962, P.L. 87-653, § 1(g), 76 Stat. 529; July 5, 1968, P.L. 90-378, §3, 82 Stat. 290; Dec. 1, 1981, P.L. 97-86, §§ 907(c), 909(f), 95 Stat. 1117, 1120; July 18, 1984, P.L. 98-369, § 2726, 98 Stat. 1194; Oct. 19, 1984, P.L. 98-525, § 1214, 98 Stat. 2592; Oct. 30, 1984, P.L. 98-577, § 505, 98 Stat. 3087; revised in its entirety P.L. 103-355, § 1503(a)(1), Oct. 13, 1994, 108 Stat. 3296; P.L. 107–107, § 1048(b)(2), Dec. 28, 2001, 115 Stat. 1225.)

§ 2312. Remission of liquidated damages

Upon the recommendation of the head of an agency, the Secretary of the Treasury may remit all or part, as he considers just

7 Section 911(a)(1) of the National Defense Authorization Act for Fiscal Year 2000 (P.L. 10665; 10 U.S.C. 133 note) provides: SEC. 911. RESPONSIBILITY FOR LOGISTICS AND SUSTAINMENT FUNCTIONS OF THE DEPARTMENT OF DEFENSE.

(a) UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND TECHNOLOGY.—(1) The position of Under Secretary of Defense for Acquisition and Technology in the Department of Defense is hereby redesignated as the Under Secretary of Defense for Acquisition, Technology, and Logistics. Any reference in any law, regulation, document, or other record of the United States to the Under Secretary of Defense for Acquisition and Technology shall be treated as referring to the Under Secretary of Defense for Acquisition, Technology, and Logistics.

and equitable, of any liquidated damages assessed for delay in performing a contract, made by that agency, that provides for such damages.

(Aug. 10, 1956, ch. 1041, 70A Stat. 132; Oct. 19, 1996, P.L. 104-316, § 202(c), 110 Stat. 3842.) § 2313. Examination of records of contractor

(a) AGENCY AUTHORITY.-(1) The head of an agency, acting through an authorized representative, is authorized to inspect the plant and audit the records of

(A) a contractor performing a cost-reimbursement, incentive, time-and-materials, labor-hour, or price-redeterminable contract, or any combination of such contracts, made by that agency under this chapter; and

(B) a subcontractor performing any cost-reimbursement, incentive, time-and-materials, labor-hour, or price-redeterminable subcontract or any combination of such subcontracts under a contract referred to in subparagraph (A).

(2) The head of an agency, acting through an authorized representative, is authorized, for the purpose of evaluating the accuracy, completeness, and currency of certified cost or pricing data required to be submitted pursuant to section 2306a of this title with respect to a contract or subcontract, to examine all records of the contractor or subcontractor related to

(A) the proposal for the contract or subcontract;
(B) the discussions conducted on the proposal;
(C) pricing of the contract or subcontract; or

(D) performance of the contract or subcontract.

(b) DCAA SUBPOENA AUTHORITY.—(1) The Director of the Defense Contract Audit Agency (or any successor agency) may require by subpoena the production of any records of a contractor that the Secretary of Defense is authorized to audit or examine under subsection (a).

(2) Any such subpoena, in the case of contumacy or refusal to obey, shall be enforceable by order of an appropriate United States district court.

(3) The authority provided by paragraph (1) may not be redelegated.

(c) COMPTROLLER GENERAL AUTHORITY. (1) Except as provided in paragraph (2), each contract awarded after using procedures other than sealed bid procedures shall provide that the Comptroller General and his representatives are authorized to examine any records of the contractor, or any of its subcontractors, that directly pertain to, and involve transactions relating to, the contract or subcontract.

(2) Paragraph (1) does not apply to a contract or subcontract with a foreign contractor or foreign subcontractor if the head of the agency concerned determines, with the concurrence of the Comptroller General or his designee, that the application of that paragraph to the contract or subcontract would not be in the public interest. However, the concurrence of the Comptroller General or his designee is not required

(A) where the contractor or subcontractor is a foreign government or agency thereof or is precluded by the laws of the

country involved from making its records available for examination; and

(B) where the head of the agency determines, after taking into account the price and availability of the property and services from United States sources, that the public interest would be best served by not applying paragraph (1).

(3) Paragraph (1) may not be construed to require a contractor or subcontractor to create or maintain any record that the contractor or subcontractor does not maintain in the ordinary course of business or pursuant to another provision of law.

(d) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.-The head of an agency may not perform an audit of indirect costs under a contract, subcontract, or modification before or after entering into the contract, subcontract, or modification in any case in which the contracting officer determines that the objectives of the audit can reasonably be met by accepting the results of an audit that was conducted by any other department or agency of the Federal Government within one year preceding the date of the contracting officer's determination.

(e) LIMITATION.-The authority of the head of an agency under subsection (a), and the authority of the Comptroller General under subsection (c), with respect to a contract or subcontract shall expire three years after final payment under such contract or subcontract. (f) INAPPLICABILITY TO CERTAIN CONTRACTS.-This section does not apply to the following contracts:

(1) Contracts for utility services at rates not exceeding those established to apply uniformly to the public, plus any applicable reasonable connection charge.

(2) A contract or subcontract that is for an amount not greater than the simplified acquisition threshold.

(g) FORMS OF ORIGINAL RECORD STORAGE.-Nothing in this section shall be construed to preclude a contractor from duplicating or storing original records in electronic form.

(h) USE OF IMAGES OF ORIGINAL RECORDS.—The head of an agency shall not require a contractor or subcontractor to provide original records in an audit carried out pursuant to this section if the contractor or subcontractor provides photographic or electronic images of the original records and meets the following requirements:

(1) The contractor or subcontractor has established procedures to ensure that the imaging process preserves the integrity, reliability, and security of the original records.

(2) The contractor or subcontractor maintains an effective indexing system to permit timely and convenient access to the imaged records.

(3) The contractor or subcontractor retains the original records for a minimum of one year after imaging to permit periodic validation of the imaging systems.

(i) RECORDS DEFINED.-In this section, the term "records" includes books, documents, accounting procedures and practices, and other data, regardless of type and regardless of whether such items are in written form, in the form of computer data, or in any other form.

(Aug. 10, 1956, ch. 1041, 70A Stat. 132; Sept. 27, 1966, P.L. 89-607, § 1(2), 80 Stat. 850; July 18, 1984, P.L. 98-369, § 2727, 98 Stat. 1195; Nov. 8, 1985, P.L. 99-145, § 935, 99 Stat. 700; P.L. 100-26, § 7(g)(1), April 21, 1987, 101 Stat. 282; P.L. 101-510, § 1301(9), Nov. 5, 1990, 104 Stat. 1668; revised in its entirety P.L. 103-355, §§ 2201(a)(1), 4102(c), Oct. 13, 1994, 108 Stat. 3316, 3340; P.L. 104-106, § 1502(a)(1), Feb. 10, 1996, 110 Stat. 502; P.L. 104-201, § 808(a), Sept. 23, 1996, 110 Stat. 2607; P.L. 106-65, §§ 1031(a)(2), 1067(1), Oct. 5, 1999, 113 Stat. 751, 774.)

§ 2314. Laws inapplicable to agencies named in section 2303 of this title

Sections 3709 and 3735 of the Revised Statutes (41 U.S.C. 5 and 13) do not apply to the procurement or sale of property or services by the agencies named in section 2303 of this title.

(Aug. 10, 1956, ch. 1041, 70A Stat. 133; Dec. 12, 1980, P.L. 96-513, §511(78), 94 Stat. 2927; Nov. 30, 1993, P.L. 103-160, § 822(b)(2), 107 Stat. 1706.)

§ 2315. Law inapplicable to the procurement of automatic data processing equipment and services for certain defense purposes

(a) For the purposes of subtitle III of title 40, the term "national security systems" means those telecommunications and information systems operated by the Department of Defense, the functions, operation or use of which

rity;

(1) involves intelligence activities;

(2) involves cryptologic activities related to national secu

(3) involves the command and control of military forces; (4) involves equipment that is an integral part of a weapon or weapons system; or

(5) subject to subsection (b), is critical to the direct fulfillment of military or intelligence missions.

(b) Subsection (a)(5) does not include procurement of automatic data processing equipment or services to be used for routine administrative and business applications (including payroll, finance, logistics, and personnel management applications).

(Added P.L. 97-86, §908(a)(1), Dec. 1, 1981, 95 Stat. 1117; amended P.L. 97-295, § 1(25), Oct. 12, 1982, 96 Stat. 1291; P.L. 104-106, § 5601(c), Feb. 10, 1996, 110 Stat. 699 [P.L. 104–201, § 1074(b)(4), Sept. 23, 1996, 110 Stat. 2660]; P.L. 105–85, § 1073(a)(49), Nov. 18, 1997, 111 Stat. 1903; P.L. 107-217, §3(b)(5), Aug. 21, 2002, 116 Stat. 1295.)

§ 2316. Disclosure of identity of contractor

The Secretary of Defense may disclose the identity or location of a person awarded a contract by the Department of Defense to any individual, including a Member of Congress, only after the Secretary makes a public announcement identifying the contractor. When the identity of a contractor is to be made public, the Secretary shall announce publicly that the contract has been awarded and the identity of the contractor.

(Added P.L. 97-295, § 1(26)(A), Oct. 12, 1982, 96 Stat. 1291.)

[§ 2317. Repealed. P.L. 103-160, § 821(a)(2), Nov. 30, 1993, 107 Stat. 1704]

§ 2318. Advocates for competition

(a)(1) In addition to the advocates for competition established or designated pursuant to section 20(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 418(a)), the Secretary of Defense

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