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Exception to contract price requirement relating to use of test and evaluation installations by commercial entities

Division A · Title XVIII: Revitalization of the Defense Industrial Base · Subtitle D: Small Business Matters

Plain-language summaryAI

Commercial entities using certain military test facilities can pay less than the full direct cost for testing if the project involves early-stage technology with potential long-term benefits and does not interfere with scheduled military tests. This exception applies to small businesses or nontraditional defense contractors, and the Defense Secretary or facility commanders can approve these reduced-cost contracts.

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Section Text · Sec. 1871.
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(1)

in subsection (c), by striking A contract entered into and inserting Except as provided in subsection (e), a contract entered into ;

(2)

in subsection (d), by inserting or subsection (e) after subsection (c) ;

(3)

by redesignating subsections (e) and (f) as subsections (f) and (g), respectively;

(4)

by inserting after subsection (d) the following new subsection:

(e) Exception to contract price requirement

(1)

Notwithstanding subsection (c), a contract entered into under subsection (a) with a covered contractor may include a provision authorizing a commercial entity using a Major Range and Test Facility Installation under the contract to reimburse the Department of Defense for a cost that is less than the amount of all direct costs to the United States associated with the test and evaluation activities conducted by the covered contractor under the contract if the Secretary determines, and certifies in writing, that—

(A)

such test and evaluation activities are for a promising science and technology concept with a low technology readiness level;

(B)

the contract is expected to yield to the Department of Defense a significant, long-term technological benefit or benefit relating to the defense industrial base; and

(C)

such test and evaluation activities will not delay or displace previously scheduled test activities associated with an existing program of record or the Portfolio Acquisition Executive of such program of record has provided written agreement to the delay or displacement.

(2)

The Secretary of Defense may delegate the authority under paragraph (1) to the commander of a Major Range and Test Facility Installation.

(5)

in subsection (g), as redesignated by paragraph (3), by adding at the end the following new paragraphs:

(3)

The term covered contractor means a small business concern or nontraditional defense contractor, that, during the preceding fiscal year, received not greater than $50,000,000 in contracts or agreements from the Department of Defense.

(4)

The term nontraditional defense contractor has the meaning given such term in section 3014 of this title.

(5)

The term small business concern has the meaning given such term under section 3 of the Small Business Act ( 15 U.S.C. 632 ).