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

Subtitle B—Amendments to General Contracting Authorities, Procedures, and Limitations.

P. L. 116-

House Conference Report   116-617

(1) by amending paragraph (1) to read as follows:

``(1) was entered into--

``(A) with respect to a contract or group of contracts not described in subparagraph (B), at least 7 fiscal years before the current fiscal year; and

``(B) with respect to a contract or group of contracts for military construction (as defined in section 2801 of title 10, United States Code) or shipbuilding, at least 10 fiscal years before the current fiscal year;''; and

(2) by amending paragraph (2) to read as follows:

``(2) the performance or delivery has been completed at least 4 years before the current fiscal year; and''.

The House bill contained a provision (sec. 818) that would amend section 836 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328) by reducing the contract closeout period for service contracts from 17 years to 7 years, but no less than the Federal Acquisition Regulation's record retention requirements. The House provision would also direct the Secretary of Defense to establish and maintain a centralized contract closeout oversight capability within the Defense Contract Management Agency (DCMA).

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would expand the scope of contracts covered by the provision and further modify contract closeout timeframes. The Senate amendment would also clarify direction regarding DCMA's role in conducting oversight of contract closeout activities.

Specifically, the conferees note that contract closeout responsibilities are dispersed among many organizations within the Department of Defense, but that the DCMA has particular expertise in carrying out such activities. The conferees therefore encourage other offices within the Department of Defense to leverage DCMA's expertise, as appropriate.

House Committee Report 116-442 Accompanying H. R. 6395

Section 818--Contract Closeout Authority for Services Contracts

This section would amend section 836 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328) by reducing the contract closeout period from the current
17 years to 7 years for service contracts, but no less than the Federal Acquisition Regulation's record retention requirements. This section would also direct the Secretary of Defense, acting through the Director of the Defense Contract Management Agency, to establish and maintain a centralized capability with necessary expertise and resources to provide oversight of the closeout of a contract or group of contracts covered by this section.