DOD Issues Interim Rule Restricting Cost-Type Contracts

Law360, New York (January 30, 2014, 5:34 PM EST) -- The Department of Defense published an interim rule Wednesday that will prevent contracting officers from entering into cost-type contracts for production of major defense acquisition programs without a congressional waiver.

The rule change, which will take effect Oct. 1, was mandated by the 2013 National Defense Authorization Act, part of a congressional attempt to rein in escalating costs for DOD weapons systems. The DOD's undersecretary of defense for acquisition, technology and logistics might get around the prohibition by giving a written certification to congressional defense committees if a cost-cost-type contract is needed "to provide a required capability in a timely, cost-effective...

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