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

Public Law 108-136

House Conference Report 108-354

SEC. 842. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION REQUIREMENTS.

Subsection (e) of section 2306 of title 10, United States Code, is amended--

(1) by striking `(A)' and `(B)' and inserting `(i)' and `(ii)', respectively;

(2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

(3) by striking `Each' and inserting `(1) Except as provided in paragraph (2), each'; and

(4) by adding at the end the following new paragraph:

`(2) Paragraph (1) shall not apply to a prime contract with a contractor that maintains a purchasing system approved by the contracting officer for the contract.'.

The House bill contained a provision (sec. 802) that would amend section 2306 of title 10, United States Code, by eliminating the requirement that contractors with a cost contract notify the agency before awarding a cost-plus-fixed-fee or a fixed price subcontract greater than the simplified acquisition threshold or five percent of the estimated cost of the prime contract. The requirement would no longer apply in those instances where the Secretary of Defense approves the contractor's purchasing system.

The Senate amendment contained no similar provision.

The Senate recedes.

House Rpt.108-106

SECTION 802--ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION REQUIREMENTS

This section would amend section 2306 of title 10, United States Code, by eliminating the requirement that contractors with a cost contract notify the agency before awarding a subcontract for a cost-plus-a-fixed-fee or a fixed price subcontract greater than the simplified acquisition threshold or five percent of the estimated cost of the prime contract. The requirement would no longer apply in those instances where the Secretary of Defense approves the contractor's purchasing system.