(f) IMPLEMENTING REGULATIONS.—The Board shall prescribe regula-
tions for the implementation of cost accounting standards prescribed or in-
terpreted under this section. The regulations shall be incorporated into the 
Federal Acquisition Regulation and shall require contractors and sub-
contractors as a condition of contracting with the Federal Government to— 
(1) disclose in writing their cost accounting practices, including 
methods of distinguishing direct costs from indirect costs and the basis 
used for allocating indirect costs; and 
(2) agree to a contract price adjustment, with interest, for any in-
creased costs paid to the contractor or subcontractor by the Federal 
Government because of a change in the contractor’s or subcontractor’s 
cost accounting practices or a failure by the contractor or subcon-
tractor to comply with applicable cost accounting standards. 
(g) NONAPPLICABILITY OF CERTAIN SECTIONS OF TITLE 5.—Functions 
exercised under this chapter are not subject to sections 551, 553 to 559, 
and 701 to 706 of title 5. 
§ 1503. Contract price adjustment 
(a) DISAGREEMENT CONSTITUTES A DISPUTE.—If the Federal Govern-
ment and a contractor or subcontractor fail to agree on a contract price ad-
justment, including whether the contractor or subcontractor has complied 
with the applicable cost accounting standards, the disagreement will con-
stitute a dispute under chapter 71 of this title. 
(b) AMOUNT OF ADJUSTMENT.—A contract price adjustment undertaken 
under section 1502(f)(2) of this title shall be made, where applicable, on 
relevant contracts between the Federal Government and the contractor that 
are subject to the cost accounting standards so as to protect the Federal 
Government from payment, in the aggregate, of increased costs, as defined 
by the Cost Accounting Standards Board. The Federal Government may not 
recover costs greater than the aggregate increased cost to the Federal Gov-
ernment, as defined by the Board, on the relevant contracts subject to the 
price adjustment unless the contractor made a change in its cost accounting 
practices of which it was aware or should have been aware at the time of 
the price negotiation and which it failed to disclose to the Federal Govern-
ment. 
(c) INTEREST.—The interest rate applicable to a contract price adjust-
ment is the annual rate of interest established under section 6621 of the 
Internal Revenue Code of 1986 (26 U.S.C. 6621) for the period. Interest 
accrues from the time payments of the increased costs were made to the 
contractor or subcontractor to the time the Federal Government receives full 
compensation for the price adjustment.
§ 1504. Effect on other standards and regulations 
(a) PREVIOUSLY EXISTING STANDARDS.—All cost accounting standards, 
waivers, exemptions, interpretations, modifications, rules, and regulations 
prescribed by the Cost Accounting Standards Board under section 719 of 
the Defense Production Act of 1950 (50 U.S.C. App. 2168)— 
(1) remain in effect until amended, superseded, or rescinded by the 
Board under this chapter; and 
(2) are subject to the provisions of this division in the same manner 
as if prescribed by the Board under this division. 
(b) INCONSISTENT AGENCY REGULATIONS.—To ensure that a regulation 
or proposed regulation of an executive agency is not inconsistent with a cost 
accounting standard prescribed or amended under this chapter, the Admin-
istrator, under the authority in sections 1121, 1122(a) to (c)(1), 1125, 
1126, 1130, 1131, and 2305 of this title, shall rescind or deny the promul-
gation of the inconsistent regulation or proposed regulation and take other 
appropriate action authorized under sections 1121, 1122(a) to (c)(1), 1125, 
1126, 1130, 1131, and 2305. 
(c) COSTS NOT SUBJECT TO DIFFERENT STANDARDS.—Costs that are 
the subject of cost accounting standards prescribed under this chapter are 
not subject to regulations established by another executive agency that dif-
fer from those standards with respect to the measurement, assignment, and 
allocation of those costs. 
§ 1505. Examinations 
To determine whether a contractor or subcontractor has complied with 
cost accounting standards prescribed under this chapter and has followed 
consistently the contractor’s or subcontractor’s disclosed cost accounting 
practices, an authorized representative of the head of the agency concerned, 
of the offices of inspector general established under the Inspector General 
Act of 1978 (5 U.S.C. App.), or of the Comptroller General shall have the 
right to examine and copy documents, papers, or records of the contractor 
or subcontractor relating to compliance with the standards. 
§ 1506. Authorization of appropriations 
Necessary amounts may be appropriated to carry out this chapter. 
CHAPTER 17—AGENCY RESPONSIBILITIES AND 
PROCEDURES 
Sec. 
1701.
Cooperation with the Administrator. 
1702.
Chief Acquisition Officers and senior procurement executives. 
1703.
Acquisition workforce. 
1704.
Planning and policy-making for acquisition workforce. 
1705.
Advocates for competition. 
1706.
Personnel evaluation. 
1707.
Publication of proposed regulations. 
1708.
Procurement notice. 
1709.
Contracting functions performed by Federal personnel.
1710.
Public-private competition required before conversion to contractor performance. 
1711.
Value engineering. 
1712.
Record requirements. 
1713.
Procurement data. 
§ 1701. Cooperation with the Administrator 
On the request of the Administrator, each executive agency shall— 
(1) make its services, personnel, and facilities available to the Office 
of Federal Procurement Policy to the greatest practicable extent for the 
performance of functions under this division; and 
(2) except when prohibited by law, furnish to the Administrator, and 
give the Administrator access to, all information and records in its pos-
session that the Administrator may determine to be necessary for the 
performance of the functions of the Office. 
§ 1702. Chief Acquisition Officers and senior procurement 
executives 
(a) APPOINTMENT OR DESIGNATION OF CHIEF ACQUISITION OFFICER.— 
The head of each executive agency described in section 901(b)(1) (other 
than the Department of Defense) or 901(b)(2)(C) of title 31 with a Chief 
Financial Officer appointed or designated under section 901(a) of title 31 
shall appoint or designate a non-career employee as Chief Acquisition Offi-
cer for the agency. 
(b) AUTHORITY AND FUNCTIONS OF CHIEF ACQUISITION OFFICER.— 
(1) PRIMARY DUTY.—The primary duty of a Chief Acquisition Offi-
cer is acquisition management. 
(2) ADVICE AND ASSISTANCE.—A Chief Acquisition Officer shall ad-
vise and assist the head of the executive agency and other agency offi-
cials to ensure that the mission of the executive agency is achieved 
through the management of the agency’s acquisition activities. 
(3) OTHER FUNCTIONS.—The functions of each Chief Acquisition 
Officer include— 
(A) monitoring the performance of acquisition activities and ac-
quisition programs of the executive agency, evaluating the per-
formance of those programs on the basis of applicable performance 
measurements, and advising the head of the executive agency re-
garding the appropriate business strategy to achieve the mission 
of the executive agency; 
(B) increasing the use of full and open competition in the acqui-
sition of property and services by the executive agency by estab-
lishing policies, procedures, and practices that ensure that the ex-
ecutive agency receives a sufficient number of sealed bids or com-
petitive proposals from responsible sources to fulfill the Federal 
Government’s requirements (including performance and delivery