Cost Accounting Standards Amendments of 1999 - Amends the Federal Procurement Policy Act to: (1) prohibit applying cost accounting standards required under the Act to a contractor or subcontractor for a fiscal year (or other one-year period used for cost accounting by the contractor or subcontractor) if the total value of all contracts and subcontracts covered by such standards that were entered into by the contractor or subcontractor, respectively, in the previous fiscal year was less than $50 million; and (2) exempt from the applicability of such standards fixed-price contracts or subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data and contracts or subcontracts with a value that is less than $5 million.
Allows an executive agency to waive the applicability of the standards: (1) for a contract or subcontract with a value of less than $10 million where the contractor or subcontractor is primarily engaged in the sale of commercial items and would not otherwise be subject to such standards; or (2) under extraordinary circumstances when necessary to meet agency needs. Prohibits an agency from delegating such authority to any official in such agency below the senior policy-making level. Requires each agency to report the waivers granted for that agency to the Cost Accounting Standards Board on an annual basis.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1151 Introduced in Senate (IS)]
106th CONGRESS
1st Session
S. 1151
To amend the Office of Federal Procurement Policy Act to streamline the
application of cost accounting standards.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 27, 1999
Mr. Thompson (for himself, Mr. Lieberman, Mr. Warner, and Mr. Levin)
introduced the following bill; which was read twice and referred to the
Committee on Governmental Affairs
_______________________________________________________________________
A BILL
To amend the Office of Federal Procurement Policy Act to streamline the
application of cost accounting standards.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cost Accounting Standards Amendments
of 1999''.
SEC. 2. STREAMLINED APPLICABILITY OF COST ACCOUNTING STANDARDS.
(a) Applicability.--Paragraph (2) of section 26(f) of the Office of
Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
(2) by striking subparagraph (B) and inserting the
following:
``(B) The cost accounting standards shall not apply to a contractor
or subcontractor for a fiscal year (or other one-year period used for
cost accounting by the contractor or subcontractor) if the total value
of all of the contracts and subcontracts covered by the cost accounting
standards that were entered into by the contractor or subcontractor,
respectively, in the previous fiscal year (or other one-year cost
accounting period) was less than $50,000,000.
``(C) Subparagraph (A) does not apply to the following contracts or
subcontracts for the purpose of determining whether the contractor or
subcontractor is subject to the cost accounting standards:
``(i) Contracts or subcontracts for the acquisition of
commercial items.
``(ii) Contracts or subcontracts where the price negotiated
is based on prices set by law or regulation.
``(iii) Firm, fixed-price contracts or subcontracts awarded
on the basis of adequate price competition without submission
of certified cost or pricing data.
``(iv) Contracts or subcontracts with a value that is less
than $5,000,000.''.
(b) Waiver.--Such section is further amended by adding at the end
the following:
``(5)(A) The head of an executive agency may waive the
applicability of cost accounting standards for a contract or
subcontract with a value less than $10,000,000 if that official
determines in writing that--
``(i) the contractor or subcontractor is primarily engaged
in the sale of commercial items; and
``(ii) the contractor or subcontractor would not otherwise
be subject to the cost accounting standards.
``(B) The head of an executive agency may also waive the
applicability of cost accounting standards for a contract or
subcontract under extraordinary circumstances when necessary to meet
the needs of the agency. A determination to waive the applicability of
cost accounting standards under this subparagraph shall be set forth in
writing and shall include a statement of the circumstances justifying
the waiver.
``(C) The head of an executive agency may not delegate the
authority under subparagraph (A) or (B) to any official in the
executive agency below the senior policymaking level in the executive
agency.
``(D) The Federal Acquisition Regulation shall include the
following:
``(i) Criteria for selecting an official to be delegated
authority to grant waivers under subparagraph (A) or (B).
``(ii) The specific circumstances under which such a waiver
may be granted.
``(E) The head of each executive agency shall report the waivers
granted under subparagraphs (A) and (B) for that agency to the Board on
an annual basis.''.
(c) Construction Regarding Certain Not-For-Profit Entities.--The
amendments made by this section shall not be construed as modifying or
superseding, nor as intended to impair or restrict, the applicability
of the cost accounting standards to--
(1) any educational institution or federally funded
research and development center that is associated with an
educational institution in accordance with Office of Management
and Budget Circular A-21, as in effect on January 1, 1999; or
(2) any contract with a nonprofit entity that provides
research and development and related products or services to
the Department of Defense.
SEC. 3. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect 180
days after the date of enactment of this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S6296-6297)
Read twice and referred to the Committee on Governmental Affairs.
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