PUBLIC LAW 103-355—OCT. 13, 1994 108 STAT. 3307 (A) by inserting after "(b)" the following: "PENALTY FOR VIOLATION OF COST PRINCIPLE.— "; (B) in subparagraph (B) of paragraph (1) by striking out "regulations issued by the Secretary" and inserting in lieu thereof "provisions in the Federal Acquisition Regulation"; and (C) by striking out "Secretary" each place it appears and inserting in lieu thereof "head of the agency". (3) Subsection (c) is amended— (A) by inserting after "(c)" the following: "WAIVER OF PENALTY.— "; and (B) by striking out "The Secretary shall prescribe regulations providing" in the first sentence and inserting in lieu thereof 'The Federal Acquisition Regulation shall provide". (4) Subsection (d) is amended— (A) by inserting after "(d)" the following: "APPLICABIL- ITY OF CONTRACT DISPUTES PROCEDURE TO DISALLOWANCE OF COST AND ASSESSMENT OF PENALTY.— "; and (B) by striking out "the Secretary" and inserting in lieu thereof "the head of an agency^. (5) Subsection (e) is amended— (A) by inserting after "(e)" the following: "SPECIFIC COSTS NOT ALLOWABLE.— "; (B) in subparagraph (D) of paragraph (1), by striking out "regulations of the Secretary of Defense" and inserting in lieu thereof "provisions of the Federal Acquisition Regulation"; (C) in subparagraph (M) of paragraph (1), by striking out "regulations prescribed by the Secretary of Defense" and inserting in lieu thereof "the Federal Acquisition Regulation"; (D) in subparagraph (A) of paragraph (2), by inserting "of Defense" after "Secretary" the first place it occurs; (E) in subparagraph (C) of paragraph (2), by striking out "head of the agency" in the first sentence and inserting in lieu thereof "Secretary of Defense"; (F) in subparagraph (A) of paragraph (3), by striking out "regulations prescribed by the Secretary" and inserting in lieu thereof "the Federal Acquisition Regulation"; and (G) by amending paragraph (4) to read as follows: "(4) The provisions of the Federal Acquisition Regulation implementing this section may establish appropriate definitions, exclusions, limitations, and qualifications.". (6) Subsection (0 is amended— (A) in paragraph (1)— (i) by striking out "(1)" and EJI that follows through 'The amendments" and inserting in lieu thereof the following: "REQUIRED REGULATIONS. —(1) The Federal Acquisition Regulation shall contain provisions on the allowability of contractor costs. Such provisions", and (ii) by striking out 'These regulations" and inserting in lieu thereof'The regulations"; and (B) in paragraphs (2), (3), and (4)— (i) by striking out "defense" before "contract auditor" each place it appears, and 79-194 0—95—22: QL 3 Part 4
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