PUBLIC LAW 103-160—NOV. 30, 1993 107 STAT. 1719 Subtitle E—Other Matters SEC. 841. REIMBURSEMENl' OF INDIRECT COSTS OF INSTITUTIONS OF 10 USC 2324 HIGHER EDUCATION UNDER DEPARTMENT OF DEFENSE note. CONTRACTS. (a) PROHiBmON.—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) DEFiNrnoNS.—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 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)). SEC. 842. PROHIBITION ON AWARD OF CERTAIN DEPARTMENT OF DEFENSE AND DEPARTMENT OF ENERGY CONTRACTS TO ENTITIES CONTROLLED BY A FOREIGN GOVERNMENT. (a) TERMINOLOGY AMENDMENT.—Subsection (a) of section 2536 of title 10, United States Code, is amended— (1) by striking out "a company owned b}^"; and (2) by striking out "that company" and inserting in lieu thereof "tiiat entity^. (b) EXCLUSION FROM DEFINITION OF ENTITY CONTROLLED BY FOREIGN GOVERNMENT.— Subsection (c)(1) of such section is amended by adding at the end the following: "Such term does not include an organization or corporation that is owned, but is not controlled, either directly or indirectly, by a foreign government if the ownership of that organization or corporation by that foreign government was effective before October 23, 1992.". (c) CLERICAL AMENDMENTS. — (1) The heading of such section is amended to read as follows: ^§ 2536. Award of certain contracts to entities controlled by a foreign government: prohibition**. (2) The item relating to such section in the table of sections at the beginning of subchapter V of chapter 148 of such title is amended to read as follows: "2536. Award of certain contracts to entities controlled by a foreign government: prohibition.".
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