Page:United States Statutes at Large Volume 124.djvu/3803

124 STAT. 3777 PUBLIC LAW 111–350—JAN. 4, 2011 by the agency head at the time of entering into the contract, of the project to which the fee applies. (c) NOTIFICATION.—All cost and cost-plus-a-fixed-fee contracts shall provide for advance notification by the contractor to the pro- curing agency of any subcontract on a cost-plus-a-fixed-fee basis and of any fixed-price subcontract or purchase order which exceeds in dollar amount either the simplified acquisition threshold or 5 percent of the total estimated cost of the prime contract. (d) RIGHT TO AUDIT.—A procuring agency, through any authorized representative thereof, has the right to inspect the plans and to audit the books and records of a prime contractor or subcontractor engaged in the performance of a cost or cost-plus-a-fixed-fee con- tract. § 3906. Cost-reimbursement contracts (a) DEFINITION.—In this section, the term ‘‘executive agency’’ has the same meaning given in section 133 of this title. (b) REGULATIONS ON THE USE OF COST-REIMBURSEMENT CON- TRACTS.—The Federal Acquisition Regulation shall address the use of cost-reimbursement contracts. (c) CONTENT.—The regulations promulgated under subsection (b) shall include guidance regarding— (1) when and under what circumstances cost-reimbursement contracts are appropriate; (2) the acquisition plan findings necessary to support a deci- sion to use cost-reimbursement contracts; and (3) the acquisition workforce resources necessary to award and manage cost-reimbursement contracts. (d) ANNUAL REPORT.— (1) IN GENERAL.—The Director of the Office of Management and Budget shall submit an annual report to Congressional committees identified in subsection (e) on the use of cost- reimbursement contracts and task or delivery orders by all executive agencies. (2) CONTENTS.—The report shall include— (A) the total number and value of contracts awarded and orders issued during the covered fiscal year; (B) the total number and value of cost-reimbursement contracts awarded and orders issued during the covered fiscal year; and (C) an assessment of the effectiveness of the regulations promulgated pursuant to subsection (b) in ensuring the appropriate use of cost-reimbursement contracts. (3) TIME REQUIREMENTS.— (A) DEADLINE.—The report shall be submitted no later than March 1 and shall cover the fiscal year ending Sep- tember 30 of the prior year. (B) LIMITATION.—The report shall be submitted from March 1, 2009, until March 1, 2014. (e) CONGRESSIONAL COMMITTEES.—The report required by sub- section (d) shall be submitted to— (1) the Committee on Oversight and Government Reform of the House of Representatives; (2) the Committee on Homeland Security and Governmental Affairs of the Senate; (3) the Committees on Appropriations of the House of Rep- resentatives and the Senate; and