§3763 Bid and Proposal Costs: Allowable Costs

Summary

Requires the Department of Defense to make rules about paying contractors for costs of making bids and proposals. Those rules must make sure these costs are shown separately from other indirect costs. The rules also say bid and proposal costs can be paid as indirect costs on "covered contracts" (as defined elsewhere) if the costs can be assigned to the contract, are reasonable, and are not already barred by law or the Federal Acquisition Regulation. Each year the Secretary of Defense must set a goal so that reimbursed bid and proposal costs do not exceed 1% of total industry sales to the Department of Defense. The rules apply to indirect costs dated on or after October 1, 2017. If the Department goes over that 1% goal in a year, the Secretary must set up an advisory panel within 180 days. The panel has nine acquisition experts with public and private experience and is supported by the Defense Acquisition University and the National Defense University. The panel reviews laws and practices that drive bidding costs and suggests changes. It must give an interim report in six months and a final report in one year, then ends. The Secretary may use the Acquisition Workforce Development Fund to help pay for the panel.