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ceiling for that contract to Congress. The contract may not be awarded until 
the end of the 30-day period beginning on the date of the notification. 
(e) CONTINGENCY
CLAUSE
FOR
APPROPRIATION
OF
FUNDS.—A 
multiyear contract may provide that performance under the contract after 
the first year of the contract is contingent on the appropriation of funds 
and (if the contract does so provide) that a cancellation payment shall be 
made to the contractor if the funds are not appropriated. 
(f) OTHER LAW NOT AFFECTED.—This section does not modify or affect 
any other provision of law that authorizes multiyear contracts. 
§ 3904. Contract authority for severable services contracts 
and multiyear contracts 
(a) COMPTROLLER GENERAL.—The Comptroller General may use avail-
able funds to enter into contracts for the procurement of severable services 
for a period that begins in one fiscal year and ends in the next fiscal year 
and to enter into multiyear contracts for the acquisition of property and 
nonaudit-related services to the same extent as executive agencies under sec-
tions 3902 and 3903 of this title. 
(b) LIBRARY OF CONGRESS.—The Library of Congress may use available 
funds to enter into contracts for the lease or procurement of severable serv-
ices for a period that begins in one fiscal year and ends in the next fiscal 
year and to enter into multiyear contracts for the acquisition of property 
and services pursuant to sections 3902 and 3903 of this title. 
(c) CHIEF ADMINISTRATIVE OFFICER OF THE HOUSE OF REPRESENTA-
TIVES.—The Chief Administrative Officer of the House of Representatives 
may enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent as the head of an executive agency under the authority of 
section 3902 of this title; and 
(2) multiyear contracts for the acquisitions of property and 
nonaudit-related services to the same extent as executive agencies 
under the authority of section 3903 of this title. 
(d) CONGRESSIONAL BUDGET OFFICE.—The Congressional Budget Office 
may use available funds to enter into contracts for the procurement of sev-
erable services for a period that begins in one fiscal year and ends in the 
next fiscal year and may enter into multiyear contracts for the acquisition 
of property and services to the same extent as executive agencies under the 
authority of sections 3902 and 3903 of this title. 
(e) SECRETARY AND SERGEANT AT ARMS AND DOORKEEPER OF THE 
SENATE.—Subject to regulations prescribed by the Committee on Rules and 
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Administration of the Senate, the Secretary and the Sergeant at Arms and 
Doorkeeper of the Senate may enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent and under the same conditions as the head of an executive 
agency under the authority of section 3902 of this title; and 
(2) multiyear contracts for the acquisition of property and services 
to the same extent and under the same conditions as executive agencies 
under the authority of section 3903 of this title. 
(f) CAPITOL POLICE.—The United States Capitol Police may enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent as the head of an executive agency under the authority of 
section 3902 of this title; and 
(2) multiyear contracts for the acquisitions of property and 
nonaudit-related services to the same extent as executive agencies 
under the authority of section 3903 of this title. 
(g) ARCHITECT OF THE CAPITOL.—The Architect of the Capitol may 
enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year to the 
same extent as the head of an executive agency under the authority of 
section 3902 of this title; and 
(2) multiyear contracts for the acquisitions of property and 
nonaudit-related services to the same extent as executive agencies 
under the authority of section 3903 of this title. 
(h) SECRETARY OF THE SMITHSONIAN INSTITUTION.—The Secretary of 
the Smithsonian Institution may enter into— 
(1) contracts for the procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year under 
the authority of section 3902 of this title; and 
(2) multiyear contracts for the acquisition of property and services 
under the authority of section 3903 of this title. 
§ 3905. Cost contracts 
(a) COST-PLUS-A-PERCENTAGE-OF-COST CONTRACTS DISALLOWED.— 
The cost-plus-a-percentage-of-cost system of contracting shall not be used. 
(b) COST-PLUS-A-FIXED-FEE CONTRACTS.— 
(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), the 
fee in a cost-plus-a-fixed-fee contract shall not exceed 10 percent of the 
estimated cost of the contract, not including the fee, as determined by 
the agency head at the time of entering into the contract. 
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(2) EXPERIMENTAL, DEVELOPMENTAL, OR RESEARCH WORK.—The 
fee in a cost-plus-a-fixed-fee contract for experimental, developmental, 
or research work shall not exceed 15 percent of the estimated cost of 
the contract, not including the fee. 
(3) ARCHITECTURAL
OR
ENGINEERING
SERVICES.—The fee in a 
cost-plus-a-fixed-fee contract for architectural or engineering services 
relating to any public works or utility project may include the contrac-
tor’s costs and shall not exceed 6 percent of the estimated cost, not 
including the fee, as determined by the agency head at the time of en-
tering into the contract, of the project to which the fee applies. 
(c) NOTIFICATION.—All cost and cost-plus-a-fixed-fee contracts shall pro-
vide for advance notification by the contractor to the procuring agency of 
any subcontract on a cost-plus-a-fixed-fee basis and of any fixed-price sub-
contract or purchase order which exceeds in dollar amount either the sim-
plified acquisition threshold or 5 percent of the total estimated cost of the 
prime contract. 
(d) RIGHT TO AUDIT.—A procuring agency, through any authorized rep-
resentative thereof, has the right to inspect the plans and to audit the books 
and records of a prime contractor or subcontractor engaged in the perform-
ance of a cost or cost-plus-a-fixed-fee contract. 
§ 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 con-
tracts are appropriate; 
(2) the acquisition plan findings necessary to support a decision to 
use cost-reimbursement contracts; and 
(3) the acquisition workforce resources necessary to award and man-
age 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— 
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(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 pro-
mulgated 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 September 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 subsection 
(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 Representa-
tives and the Senate; and 
(4) in the case of the Department of Defense and the Department 
of Energy, the Committees on Armed Services of the Senate and the 
House of Representatives. 
CHAPTER 41—TASK AND DELIVERY ORDER CONTRACTS 
Sec. 
4101.
Definitions. 
4102.
Authorities or responsibilities not affected. 
4103.
General authority. 
4104.
Guidance on use of task and delivery order contracts. 
4105.
Advisory and assistance services. 
4106.
Orders. 
§ 4101. Definitions 
In this chapter: 
(1) DELIVERY ORDER CONTRACT.—The term ‘‘delivery order con-
tract’’ means a contract for property that— 
(A) does not procure or specify a firm quantity of property 
(other than a minimum or maximum quantity); and 
(B) provides for the issuance of orders for the delivery of prop-
erty during the period of the contract. 
(2) TASK
ORDER
CONTRACT.—The term ‘‘task order contract’’ 
means a contract for services that— 
(A) does not procure or specify a firm quantity of services 
(other than a minimum or maximum quantity); and 
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