PUBLIC LAW 100-456—SEPT. 29, 1988
102 STAT. 1929
(d) CONDITIONS.—A multiyear contract authorized by this section may not be entered into unless each of the following conditions is satisfied: (1) The Secretary of Defense certifies to Congress that the current five-year defense program fully funds the support costs associated with the multiyear program. (2) The proposed multiyear contract provides for production at not less than minimum economic rates given the existing tooling and facilities. (3) The proposed multiyear contract— (A) achieves a 10 percent savings as compared to the cost of current negotiated contracts, adjusted for changes in quantity and for inflation; or (B) achieves a 12 percent savings as compared to annual contracts if no recent contract experience exists. (e) NEGOTIATED PRICED OPTIONS.—The Secretary of Defense may
instruct the Secretary of the military department concerned to incorporate into a proposed multiyear contract under this section negotiated priced options for varying the quantities of end items to be procured over the period of the contract. PART B—PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS SEC. 111. ARMY PROGRAMS
(a) ADATS AIR DEFENSE WEAPON.—(1) The Secretary of the Army may obligate funds appropriated for fiscal year 1989 for procurement of the ADATS Air Defense Weapon system in the amount of $85,000,000 for production of five fire units and 60 missiles to be used specifically for production qualification testing and operational testing. Funds may be obligated for such purpose only after the Director of Operational Test and Evaluation of the Department of Defense certifies to the Committees on Armed Services of the Senate and House of Representatives that he has approved the plan for the qualification testing and operational testing for such system. (2) The Secretary of the Army may obligate funds for procurement and advanced procurement for such system for any fiscal year after fiscal year 1989 only after— (A) the operational tests for such system are completed; (B) the Secretary of Defense certifies to the Committees on Armed Services of the Senate and House of Representatives that the system meets or exceeds the operationed performance criteria of the Army; (C) the Director of Operational Test and Evaluation of the Department of Defense provides to those Committees his evaluation of the performance of the system; and (D) the Comptroller General of the United States provides to those Committees his evaluation of the performance of the system. (h) MORTARS.—The Secretary of the Army may not obligate funds appropriated for fiscal year 1989 for procurement of 120-millimeter mortars or 4.2-inch mortars (or for procurement of ammunition for either such mortar) until the Secretary does each of the following: (1) Submits to Congress a new master plan for Army mortars, including a description of the status of 4.2-inch mortars (and the ammunition for such mortars) and the status of any proposed upgrade of such mortar or ammunition.