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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A—Acquisition Policy and Management.

P. L. 116-92

House Conference Report 116-333

SEC. 805. LIMITATION ON TRANSFER OF FUNDS RELATED TO COST OVERRUNS AND COST UNDERRUNS.

(a) In General.--Section 828(a) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2430 note) is amended by striking ``For each of fiscal years 2018 through 2022'' and inserting ``For fiscal years 2018 and 2019''.

(b) Technical Amendment.--Section 825 of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115-91; 131 Stat. 1466; 10 U.S.C. 2430 note) is amended--

(1) by repealing subsection (b); and

(2) by striking ``(a) In General.--''.

Limitation on transfer of funds related to cost overruns and cost underruns (sec. 805)

The House amendment contained a provision (sec. 814) that would repeal an annual requirement for the Secretary of each military department to pay penalties for cost overruns on major defense acquisition programs, which were then credited to the
Rapid Prototyping Fund.

The Senate bill contained no similar provision.

The Senate recedes with an amendment that would make the repeal effective beginning in fiscal year 2020.


House Report 116-120


Section 814--Repeal of Transfer of Funds Related to Cost Overruns and Cost Underruns

This section would repeal an annual requirement for the Secretary of each military department to pay a penalty for cost overruns on covered major defense acquisition programs of the military department. Under the requirement, the Secretary of each military department was required to reduce research, development, test and evaluation, or procurement accounts up to $50.0 million at each military department every fiscal year. The funds were then credited to the Rapid Prototyping Fund established pursuant to section 804 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92).

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