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entered into by the contractor as the subcontractor under a Department of Defense contract.

(3) A Department of Defense contractor referred to in paragraph (1) is, with respect to a comprehensive subcontracting plan negotiated in any fiscal year, a business concern that, during the immediately preceding fiscal year, furnished the Department of Defense with supplies or services (including professional services, research and development services, and construction services) pursuant to at least three Department of Defense contracts having an aggregate value of at least $5,000,000.

(c) WAIVER OF CERTAIN SMALL BUSINESS ACT SUBCONTRACTING PLAN REQUIREMENTS.—A Department of Defense contractor is not required to negotiate or submit a subcontracting plan under paragraph (4) or (5) of section 8(d) of the Small Business Act (15 U.S.C. 637(d)) with respect to a Department of Defense contract if

(1) the contractor has negotiated a comprehensive subcontracting plan under the test program that includes the matters specified in section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6));

(2) such matters have been determined acceptable by the Secretary of the military department or head of a Defense Agency negotiating such comprehensive subcontracting plan; and

(3) the comprehensive subcontracting plan applies to the contract.

(d) FAILURE TO MAKE A GOOD FAITH EFFORT TO COMPLY WITH A COMPANY-WIDE SUBCONTRACTING PLAN.—A contractor that has negotiated a comprehensive subcontracting plan under the test program shall be subject to section 8(d)(4)(F) of the Small Business Act (15 U.S.C. 637(D)(4)(F)) regarding the assessment of liquidated damages for failure to make a good faith effort to comply with its company-wide plan and the goals specified in that plan. 1

(e) TEST PROGRAM PERIOD.-The test program authorized by subsection (a) shall begin on October 1, 1990, unless Congress adopts a resolution disapproving the test program. The test program shall terminate on September 30, 2005.

(f) REPORT.1) Not later than March 1, 1994, the Secretary of Defense shall submit a report on the results of the test program to the Committees on Armed Services and on Small Business of the Senate and the House of Representatives.

(2) Before submitting such report to the committees referred to in paragraph (1), the Secretary shall transmit the proposed report to the Administrator of the Small Business Administration. The report submitted to the committees shall include any comments and recommendations relating to the report that are transmitted to the

1 Section 402 of Public Law 101-574 (15 U.S.C. 637 note) provides: SEC. 402. SUSPENSION OF LIQUIDATED DAMAGES UNDER COMPREHENSIVE

SMALL BUSINESS SUBCONTRACTING PLANS. To facilitate participation in the test program for the negotiation of comprehensive small business subcontracting plans pursuant to section 834 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1510), subsection (d) of such section is hereby suspended for the period of the test program as specified in subsection (e) of such section.

Secretary by the Administrator before the date specified in such paragraph. (g) DEFINITIONS.—As used in this section:

(1) The term “small business concern” shall have the same meaning as is provided in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C)), and includes a small business concern owned and controlled by socially and economically disadvantaged individuals.

(2) The term “small business concern owned and controlled by socially and economically disadvantaged individuals” shall have the same meaning as is provided in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C)).

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SEC. 851. (103 Stat. 1517] AUTHORITY TO CONTRACT WITH UNIVERSITY

PRESSES FOR PRINTING, PUBLISHING, AND SALE OF HIS

TORY OF THE OFFICE OF THE SECRETARY OF DEFENSE The Government Printing Office, on behalf of the Secretary of Defense, shall contract for services for the printing, publishing, and sale of volumes III and IV of the publication entitled "History of the Office of the Secretary of Defense" using procurement procedures that exclude sources other than university presses. SEC. 852. (19 U.S.C. 2242 note] PROCUREMENT FROM COUNTRIES THAT

DENY ADEQUATE AND EFFECTIVE PROTECTION OF IN

TELLECTUAL PROPERTY RIGHTS (a) SENSE OF CONGRESS. It is the sense of Congress that it should be a very important consideration in the procurement of property, services, or technology by the Department of Defense whether such procurement is from any person of any country which has been identified by the United States Trade Representative, on the advice of the Commissioner of Patents and Trademarks in the Department of Commerce and the Register of Copyrights, pursuant to section 182(a)(2) of the Trade Act of 1974 (19 U.S.C. 2242) as denying adequate and effective protection of intellectual property rights or fair and equitable market access to United States persons that rely upon intellectual property protection.

DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1986

(P.L. 99–145, approved Nov. 8, 1985)

TITLE IX-PROCUREMENT POLICY REFORM AND OTHER

PROCUREMENT MATTERS

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SEC. 913. [10 U.S.C. 2302 note] MINIMUM PERCENTAGE OF COMPETI.

TIVE PROCUREMENTS (a) ANNUAL GOAL.—The Secretary of Defense shall establish for each fiscal year a goal for the percentage of defense procurements to be made during that year (expressed in total dollar value of contracts entered into) that are to be competitive procurements.

(b) DEFINITION.—For the purposes of this section, the term "competitive procurements” means procurements made by the Department of Defense through the use of competitive procedures, as defined in section 2304 of title 10, United States Code.

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SEC. 931. (18 U.S.C. 287 note] INCREASED PENALTIES FOR FALSE

CLAIMS IN DEFENSE PROCUREMENT (a) CRIMINAL FINES.-Notwithstanding sections 287 and 3623 of title 18, United States Code, the maximum fine that may be imposed under such section for making or presenting any claim upon or against the United States related to a contract with the Department of Defense, knowing such claim to be false, fictitious, or fraudulent, is $1,000,000.

(b) CIVIL PENALTIES.—Notwithstanding section 3729 of title 31, United States Code, the amount of the liability under that section in the case of a person who makes a false claim related to a contract with the Department of Defense shall be a civil penalty of $2,000, an amount equal to three times the amount of the damages the Government sustains because of the act of the person, and costs of the civil action.

(c) EFFECTIVE DATE.--Subsections (a) and (b) shall be applicable to claims made or presented on or after the date of the enactment of this Act (Nov. 8, 1985).

SELECTED PROVISIONS OF DEFENSE APPROPRIATIONS

ACTS

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