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the 90-day period ending on the date of such report
resulted in a finding described in subsection (b).
(2) COVERAGE
OF
SUBCONTRACTS.—For pur-
poses of this section, any reference to a contract shall
be treated as a reference to such contract and to any
subcontracts under such contract.
(b) COVERED FINDING.—A finding described in this
subsection with respect to a task or delivery order contract
or other contract described in subsection (a) is a finding
by an investigative or audit component of the Department
of Defense that the contract includes costs that are unsup-
ported, questioned, or both.
(c) REPORT INFORMATION.—Each report under sub-
section (a) shall include, with respect to each task or deliv-
ery order contract or other contract covered by such
report—
(1) a description of the costs determined to be
unsupported, questioned, or both; and
(2) a statement of the amount of such unsup-
ported or questioned costs and the percentage of the
total value of such task or delivery order that such
costs represent.
(d) WITHHOLDING OF PAYMENTS.—In the event that
any costs under a task or delivery order contract or other
contract described in subsection (a) are determined by an
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investigative or audit component of the Department of De-
fense to be unsupported, questioned, or both, the appropriate
Federal procurement personnel may withhold from amounts
otherwise payable to the contractor under such contract a
sum of up to 100 percent of the total amount of such costs.
(e) RELEASE OF WITHHELD PAYMENTS.—Upon a sub-
sequent determination by the appropriate Federal procure-
ment personnel, or investigative or audit component of the
Department of Defense, that any unsupported or questioned
costs for which an amount payable was withheld under sub-
section (d) has been determined to be allowable, or upon
a settlement negotiated by the appropriate Federal procure-
ment personnel, the appropriate Federal procurement per-
sonnel may release such amount for payment to the con-
tractor concerned.
(f) INCLUSION
OF INFORMATION
ON WITHHOLDING
AND RELEASE
IN QUARTERLY REPORTS.—Each report
under subsection (a) after the initial report under that sub-
section shall include the following:
(1) A description of each action taken under sub-
section (d) or (e) during the period covered by such
report.
(2) A justification of each determination or nego-
tiated settlement under subsection (d) or (e) that ap-
propriately explains the determination of the applica-
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ble Federal procurement personnel in terms of reason-
ableness, allocability, or other factors affecting the ac-
ceptability of the costs concerned.
(g) DEFINITIONS.—In this section:
(1) The term ‘‘appropriate committees of Con-
gress’’ means—
(A) the Committees on Appropriations,
Armed Services, and Homeland Security and
Governmental Affairs of the Senate; and
(B) the Committees on Appropriations,
Armed Services, and Government Reform of the
House of Representatives.
(2) The term ‘‘investigative or audit component
of the Department of Defense’’ means any of the fol-
lowing:
(A) The Office of the Inspector General of
the Department of Defense.
(B) The Defense Contract Audit Agency.
(C) The Defense Contract Management
Agency.
(D) The Army Audit Agency.
(E) The Naval Audit Service.
(F) The Air Force Audit Agency.
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(3) The term ‘‘questioned’’, with respect to a cost,
means an unreasonable, unallocable, or unallowable
cost.
Subtitle D—Defense Acquisition
Workforce Matters
SEC. 831. AVAILABILITY OF FUNDS IN ACQUISITION WORK-
FORCE TRAINING FUND FOR DEFENSE ACQUI-
SITION WORKFORCE IMPROVEMENTS.
(a) AVAILABILITY OF DEPARTMENT OF DEFENSE CON-
TRACT FEES FOR DEFENSE ACQUISITION UNIVERSITY.—
Section 37 of the Office of Federal Procurement Policy Act
(41 U.S.C. 433) is amended—
(1) in subsection (a), by striking ‘‘This section’’
and inserting ‘‘Except as otherwise provided, this sec-
tion’’; and
(2) in subsection (h)(3)—
(A) in subparagraph (B), by striking
‘‘(other than the Department of Defense)’’ in the
first sentence;
(B) by redesignating subparagraphs (D),
(E), (F), and (G) as subparagraphs (E), (F),
(G), and (H), respectively;
(C) by inserting after subparagraph (C) the
following new subparagraph (D):
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‘‘(D) The Administrator of General Services
shall credit to the Defense Acquisition University
fees collected in accordance with subparagraph
(B) from the Department of Defense. Amounts so
credited shall be used to develop and expand
training for the defense acquisition workforce.’’;
and
(D) in subparagraph (E), as so redesig-
nated, by striking ‘‘the purpose specified in sub-
paragraph (A)’’ and inserting ‘‘the purposes
specified in subparagraphs (A) and (D)’’.
(b) CONFORMING AMENDMENT.—Section 1412 of the
National Defense Authorization Act for Fiscal year 2004
(Public Law 108–136; 117 Stat. 1664; 41 U.S.C. 433 note)
is amended by striking subsection (c).
SEC. 832. LIMITATION AND REINVESTMENT AUTHORITY RE-
LATING TO REDUCTION OF THE DEFENSE AC-
QUISITION AND SUPPORT WORKFORCE.
(a) LIMITATION.—Notwithstanding any other provi-
sion of law, the defense acquisition and support workforce
may not be reduced, during fiscal years 2006, 2007, and
2008, below the level of that workforce as of September 30,
2004, determined on the basis of full-time employee equiva-
lence, except as may be necessary to strengthen the defense