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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

(a) Department of Defense Review.--

(1) In general.--The Under Secretary of Defense for Acquisition and Sustainment shall review how the Department of Defense informs decisions to use fixed-price contracts to support broader acquisition objectives to ensure that such decisions are made strategically and consistently. The review should include decisions on the use of the various types of fixed price contracts, including fixed-price incentive contracts.

(2) Briefing.--Not later than February 1, 2020, the Under Secretary shall brief the congressional defense committees on the findings of the review required under paragraph (1).

(b) Comptroller General Report.--

(1) In general.--Not later than February 1, 2021, the Comptroller General of the United States shall submit to the congressional defense committees a report on the Department of Defense's use of fixed-price contracts, including different types of fixed-price contracts.

(2) Elements.--The report required under paragraph (1) shall include the following elements:

(A) A description of the extent to which fixed-price contracts have been used over time and the conditions in which they are used.

(B) An assessment of the effects of the decisions to use fixed-price contract types, such as any additional costs or savings or efficiencies in contract administration.

(C) An assessment of how decisions to use various types of fixed-price contracts affects the contract closeout process.
(c) Delayed Implementation of Regulations Requiring the Use of Fixed-Price Contracts for Foreign Military Sales.--The regulations prescribed pursuant to section 830(a) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 22 U.S.C. 2762 note) shall not take effect until December 31, 2020. The regulations as so prescribed shall take into account the findings of the review conducted under subsection (a)(1).

The Senate bill contained a provision (sec. 806) that would require the Under Secretary of Defense for Acquisition and Sustainment to review how the Department of Defense uses fixed-price contracts, including fixed-price incentive contracts, to support acquisition objectives and brief the congressional defense committees not later than February 1, 2020. The provision would further require the Comptroller General of the United States to submit a report on the Department's use of fixed-price contracts over time no later than February 1, 2021. This provision would also delay the implementation of regulations requiring the use of fixed-price contracts for foreign military sales until after 2020.

The House amendment contained no similar provision.

The House recedes.

Senate Report 116-48

Department of Defense use of fixed-price contracts (sec. 806)

The committee recommends a provision that would require the Under Secretary of Defense for Acquisition and Sustainment to review how the Department of Defense uses fixed-price contracts, including fixed-price incentive contracts, to support acquisition objectives. The committee is concerned about the extent to which the Department is using fixed-price contracts in situations in which other contract types would be more appropriate. Under this provision, the Under Secretary of Defense for Acquisition and Sustainment would provide a briefing to the congressional defense committees on the results of this review not later than February 1, 2020.

The provision would further require the Comptroller General of the United States to submit a report on the Department's use of fixed-price contracts over time, to include costs, incentives, duration, and close-out procedures, to the congressional defense committees no later than February 1, 2021.

Finally, the provision would delay the implementation of regulations requiring the use of fixed-price contracts for foreign military sales until after 2020.