SEC. 864. REGULATIONS ON THE USE OF
(a) In General- Not later than 270 days after the date of the
enactment of this Act, the Federal Acquisition Regulation shall
be revised to address the use of cost-reimbursement contracts.
(b) Content- The regulations promulgated under subsection (a)
shall include, at a minimum, guidance regarding--
when and under what circumstances cost-reimbursement contracts
(2) the acquisition plan findings necessary to support a
decision to use cost-reimbursement contracts; and
(3) the acquisition workforce resources necessary to award and
manage cost-reimbursement contracts.
Inspector General Review- Not later than one year after the
regulations required by subsection (a) are promulgated, the
Inspector General for each executive agency shall review the use
of cost-reimbursement contracts by such agency for compliance
with such regulations and shall include the results of the
review in the Inspector General's next semiannual report.
(d) Report- Subject to subsection (f), the Director of the
Office of Management and Budget shall submit an annual report to
Congressional committees identified in subsection (e) on the use
of cost-reimbursement contracts and task or delivery orders by
all executive agencies. The report shall be submitted no later
than March 1 and shall cover the fiscal year ending September 30
of the prior year. The report shall include--
the total number and value of contracts awarded and orders
issued during the covered fiscal year;
(2) the total number and value of cost-reimbursement contracts
awarded and orders issued during the covered fiscal year; and
(3) an assessment of the effectiveness of the regulations
promulgated pursuant to subsection (a) in ensuring the
appropriate use of cost-reimbursement contracts.
Congressional Committees Defined- The report required by
subsection (d) shall be submitted to the Committee on Oversight
and Government Reform of the House of Representatives; the
Committee on Homeland Security and Governmental Affairs of the
Senate; the Committees on Appropriations of the House of
Representatives and the Senate; and, in the case of the
Department of Defense and the Department of Energy, the
Committees on Armed Services of the Senate and the House of
(f) Requirements Limited to Certain Agencies and Years-
AGENCIES- The requirement in subsection (c) shall apply only
to those executive agencies that awarded contracts or issued
orders (under contracts previously awarded) in a total amount
of at least $1,000,000,000 in the fiscal year proceeding the
fiscal year in which the assessments and reports are
(2) YEARS- The report required by subsection (d) shall be
submitted from March 1, 2009, until March 1, 2014.
Executive Agency Defined- In this section, the term `executive
agency' has the meaning given such term in section 4(1) of the
Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).
Regulations on cost-plus contracts.
Section 864 requires regulations to address the use of