PUBLIC LAW 106-65 —OCT. 5, 1999 113 STAT. 701 SEC. 802. STREAMLINED APPLICABILITY OF COST ACCOUNTING STANDARDS. (a) APPLICABILITY. —Paragraph (2)(B) of section 26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)(B)) is amended by adding at the end the following new clauses: "(iii) Firm, fixed-price contracts or subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data. "(iv) A contract or subcontract with a value of less than $7,500,000 if, at the time the contract or subcontract is entered into, the segment of the contractor or subcontractor that will perform the work has not been awarded at least one contract or subcontract with a value of more than $7,500,000 that is covered by the cost accounting standards.". (b) WAIVER.—Section 26(f) of that Act is further amended by adding at the end the following: "(5)(A) The head of an executive agency may waive the applicability of the cost accounting standards for a contract or subcontract with a value less than $15,000,000 if that official determines in writing that the segment of the contractor or subcontractor that will perform the work— "(i) is primarily engaged in the sale of commercial items; and "(ii) would not otherwise be subject to the cost accounting standards under this section, as in effect on or after the effective date of this paragraph. "(B) The head of an executive agency may also waive the applicability of the cost accounting standards for a contract or subcontract under exceptional circumstances when necessary to meet the needs of the agency. A determination to waive the applicability of the cost accounting standards under this subparagraph shall be set forth in writing and shall include a statement of the circumstances justifying the waiver. "(C) The head of an executive agency may not delegate the authority under subparagraph (A) or (B) to any official in the executive agency below the senior polic3anaking level in the executive agency. "(D) The Federal Acquisition Regulation shall include the following: "(i) Criteria for selecting an official to be delegated authority to grant waivers under subparagraph (A) or (B). "(ii) The specific circumstances under which such a waiver may be granted. "(E) The head of each executive agency shall report the waivers granted under subparagraphs (A) and (B) for that agency to the Board on an annual basis.". (c) REGULATION ON TYPES OF CAS COVERAGE.— (1) The 4i use 422 note. Administrator for Federal Procurement Policy shall revise the rules and procedures prescribed pursuant to section 26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)) to the extent necessary to increase the thresholds established in section 9903.201-2 of title 48 of the Code of Federal Regulations from $25,000,000 to $50,000,000. (2) Paragraph (1) requires only a change of the statement of a threshold condition in the regulation referred to by section number in that paragraph, and shall not be construed as— (A) a ratification or expression of approval of—
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