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(1) IN GENERAL.-Except as otherwise provided in this subsection, any demonstration project described in subsection (a) shall be subject to section 4703 of title 5, United States Code, and all other provisions of such title that apply with respect to any demonstration project under such section.

(2) EXCEPTIONS.—Subject to paragraph (3), in applying section 4703 of title 5, United States Code, with respect to a demonstration project described in subsection (a)

(A) "180 days” in subsection (b)(4) of such section shall be deemed to read “120 days”;

(B) “90 days” in subsection (b)(6) of such section shall be deemed to read “30 days”; and

(C) subsection (d)(1)(A) of such section shall be disregarded

(3) CONDITION.—Paragraph (2) shall not apply with respect to a demonstration project unless it

(A) involves only the acquisition workforce of the Department of Defense (or any part thereof)or involves a team of personnel more than half of which consists of members of the acquisition workforce and the remainder of which consists of supporting personnel assigned to work directly with the acquisition workforce; and

(B) commences during the 3-year period beginning on the date of the enactment of the National Defense Author

ization Act for Fiscal Year 1998 (Nov. 18, 1997). (c) DEFINITION.-For purposes of this section, the term "acquisition workforce” refers to the persons serving in acquisition positions within the Department of Defense, as designated pursuant to section 1721(a) of title 10, United States Code.

(d) LIMITATION ON NUMBER OF PARTICIPANTS.—The total number of persons who may participate in the demonstration project under this section may not exceed 95,000.

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TITLE VIII-ACQUISITION POLICY,

QUISITION MANAGEMENT, AND
LATED MATTERS

AC-
RE-

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SEC. 819. (108 Stat. 2822) DEFENSE ACQUISITION PILOT PROGRAM DES

IGNATIONS. The Secretary of Defense is authorized to designate the following defense acquisition programs for participation, to the extent provided in the Federal Acquisition Streamlining Act of 1994, in the defense acquisition pilot program authorized by section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note): 1

(1) The Fire Support Combined Arms Tactical Trainer program.

(2) The Joint Direct Attack Munition program.
(3) The Joint Primary Aircraft Training System.
(4) Commercial-derivative aircraft.
(5) Commercial-derivative engine.

1 Section 809 of the National Defense Authorization Act for Fiscal Year 1991 (P.L. 101–510) is set forth beginning on page 465.

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1994

(P.L. 103–160, approved Nov. 30, 1993)

DIVISION A-DEPARTMENT OF
DEFENSE AUTHORIZATIONS

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TITLE VIII–ACQUISITION POLICY, AC

QUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A-Defense Technology and Industrial Base, Reinvestment and Conversion

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SEC. 802. [10 U.S.C. 2358 note] UNIVERSITY RESEARCH INITIATIVE SUP.

PORT PROGRAM. (a) ESTABLISHMENT.—The Secretary of Defense, through the Director of Defense Research and Engineering, may establish a University Research Initiative Support Program.

(b) PURPOSE.-Under the program, the Director may award grants and contracts to eligible institutions of higher education to support the conduct of research and development relevant to requirements of the Department of Defense.

(c) ELIGIBILITY.-An institution of higher education is eligible for a grant or contract under the program if the institution has received less than a total of $2,000,000 in grants and contracts from the Department of Defense in the two most recent fiscal years for which complete statistics are available when proposals are requested for such grant or contract.

(d) COMPETITION REQUIRED.-The Director shall use competitive procedures in awarding grants and contracts under the program.

(e) SELECTION PROCESS.-In awarding grants and contracts under the program, the Director shall use a merit-based selection process that is consistent with the provisions of section 2361(a) of title 10, United States Code.

(f) REGULATIONS.—Not later than 90 days after the date of the enactment of this Act (Nov. 30, 1993), the Director shall prescribe regulations for carrying out the program.

(g) FUNDING. Of the amounts authorized to be appropriated under section 201, $20,000,000 shall be available for the University Research Initiative Support Program.

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SEC. 831. [107 Stat. 1715] REFERENCE TO DEFENSE ACQUISITION PILOT

PROGRAM. A reference in this subtitle to the Defense Acquisition Pilot Program is a reference to the defense acquisition pilot program authorized by section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note). 1

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SEC. 833. [10 U.S.C. 2430 note] MISSION ORIENTED PROGRAM MANAGE

MENT. (a) MISSION-ORIENTED PROGRAM MANAGEMENT. In the exercise of the authority provided in section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note), the Secretary of Defense should propose for one or more of the defense acquisition programs covered by the Defense Acquisition Pilot Program to utilize the concept of mission-oriented program management.

(b) POLICIES AND PROCEDURES.—In the case of each defense acquisition program covered by the Defense Acquisition Pilot Program, the Secretary of Defense should prescribe policies and procedures for the interaction of the program manager and the commander of the operational command (or a representative) responsible for the requirement for the equipment acquired, and for the interaction with the commanders of the unified and specified combatant commands. Such policies and procedures should include provisions for enabling the user commands to participate in acceptance testing.

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SEC. 837. (10 U.S.C. 2430 note] EFFICIENT CONTRACTING PROCESSES.

The Secretary of Defense shall take any additional actions that the Secretary considers necessary to waive regulations not required by statute that affect the efficiency of the contracting process within the Department of Defense. Such actions shall include, in the Secretary's discretion, developing methods to streamline the procurement process, streamlining the period for entering into contracts, and defining alternative techniques to reduce reliance on military specifications and standards, in contracts for the defense

1 Section 809 of the National Defense Authorization Act for Fiscal Year 1991 (P.L. 101–510), referred to in sections 831 and 833(a), is set forth beginning on page 465. For other provisions related to the defense acquisition pilot program, see section 5064 of the Federal Acquisition Streamlining Act of 1994 (P.L. 103–355), set forth beginning on page 625, and section 819 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103-337), set forth on page

acquisition programs participating in the Defense Acquisition Pilot Program. SEC. 838. (10 U.S.C. 2430 note] CONTRACT ADMINISTRATION: PERFORM

ANCE BASED CONTRACT MANAGEMENT. For at least one participating defense acquisition program for which a determination is made to make payments for work in progress under the authority of section 2307 of title 10, United States Code, the Secretary of Defense should define payment milestones on the basis of quantitative measures of results. SEC. 839. (10 U.S.C. 2430 note] CONTRACTOR PERFORMANCE ASSESS

MENT. (a) COLLECTION AND ANALYSIS OF PERFORMANCE INFORMATION.— The Secretary of Defense shall collect and analyze information on contractor performance under the Defense Acquisition Pilot Program.

(b) INFORMATION TO BE INCLUDED.-Information collected under subsection (a) shall include the history of the performance of each contractor under the Defense Acquisition Pilot Program contracts and, for each such contract performed by the contractor, a technical evaluation of the contractor's performance prepared by the program manager responsible for the contract.

Subtitle E-Other Matters

SEC. 841. (10 U.S.C. 2324 note] REIMBURSEMENT OF INDIRECT COSTS

OF INSTITUTIONS OF HIGHER EDUCATION UNDER DE

PARTMENT OF DEFENSE CONTRACTS. (a) PROHIBITION.—The Secretary of Defense may not by regulation place a limitation on the amount that the Department of Defense may reimburse an institution of higher education for allowable indirect costs incurred by the institution for work performed for the Department of Defense under a Department of Defense contract unless that same limitation is applied uniformly to all other organizations performing similar work for the Department of Defense under Department of Defense contracts.

(b) WAIVER.—The Secretary of Defense may waive the application of the prohibition in subsection (a) in the case of a particular institution of higher education if the governing body of the institution requests the waiver in order to simplify the overall management by that institution of cost reimbursements by the Department of Defense for contracts awarded by the Department to the institution. (c) DEFINITIONS.—In this section:

(1) The term “allowable indirect costs” means costs that are generally considered allowable as indirect costs under regulations that establish the cost reimbursement principles applicable to an institution of higher education for purposes of Department of Defense contracts.

(2) The term "institution of higher education" has the meaning given such term in section 101 of the Higher Education Act of 1965.

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