PUBLIC LAW 106-39& —APPENDIX 114 STAT. 1654A-205 "(5) The committees of Congress referred to in paragraphs (1), (3), and (4) are as follows: "(A) The Committee on Armed Services and the Committee on Appropriations of the Senate. "(B) The Committee on Armed Services and the Committee on Appropriations of the House of Representatives. "(e) CANCELLATION OR TERMINATION FOR INSUFFICIENT FUNDING AFTER FIRST YEAR. — In the event that funds are not made available for the continuation of a multiyear contract for services into a subsequent fiscal year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from— "(1) appropriations originally available for the performance of the contract concerned; "(2) appropriations currently available for procurement of the t5T)e of services concerned, and not otherwise obligated; or "(3) funds appropriated for those payments. "(f) MULTIYEAR CONTRACT DEFINED.— For the purposes of this section, a multiyear contract is a contract for the purchase of services for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made.". (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2306b the following: "2306c. Multiyear contracts: acquisition of services.". (b) REFERENCE TO RELOCATED AUTHORITY.—Subsection (g) of section 2306 of such title is amended to read as follows: "(g) Multiyear contracting authority for the acquisition of services is provided in section 2306c of this title.". (c) CONFORMING AMENDMENT.— Section 2306b(k) of title 10, United States Code, is amended by striking "or services". (d) APPLICABILITY.— Section 2306c of title 10, United States Code (as added by subsection (a)), shall apply with respect to contracts for which solicitations of offers are issued after the date of the enactment of this Act. SEC. 803. CLARIFICATION AND EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE PROJECTS. (a) AMENDMENTS TO AUTHORITY. — Section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103- 160; 10 U.S.C. 2371 note) is amended— (1) by redesignating subsection (d) as subsection (f); and (2) by inserting after subsection (c) the following new subsections: "(d) APPROPRD^TE USE OF AUTHORITY.—(1) The Secretary of Defense shall ensure that no official of an agency enters into a transaction (other than a contract, grant, or cooperative agreement) for a protot5T)e project under the authority of this section unless— "(A) there is at least one nontraditional defense contractor participating to a significant extent in the prototype project; or
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