§3906 Cost-reimbursement Contracts

Summary

Requires the Federal Acquisition Regulation to include rules about when and how to use cost-reimbursement contracts for executive agencies (the term “executive agency” is defined in section 133). The rules must explain when those contracts are appropriate, what findings are needed in the acquisition plan to approve them, and what staff and resources are needed to award and manage them. The Director of the Office of Management and Budget must send Congress an annual report on all executive agencies’ use of contracts and orders. Each report is due by March 1 and covers the fiscal year ending the prior September 30. Reports, sent from March 1, 2009 until March 1, 2014, must show total numbers and dollar values of contracts and orders, totals for cost-reimbursement ones, and an assessment of how well the new rules work. Reports go to the House Oversight Committee, the Senate Homeland Security and Governmental Affairs Committee, both House and Senate Appropriations Committees, and the House and Senate Armed Services Committees for the Department of Defense and Department of Energy.