H. R. 1107—101 
by the agency head at the time of entering into the contract, 
of the project to which the fee applies. 
(c) NOTIFICATION.—All cost and cost-plus-a-fixed-fee contracts 
shall provide for advance notification by the contractor to the pro-
curing agency of any subcontract on a cost-plus-a-fixed-fee basis 
and of any fixed-price subcontract or purchase order which exceeds 
in dollar amount either the simplified acquisition threshold or 5 
percent of the total estimated cost of the prime contract. 
(d) RIGHT TO AUDIT.—A procuring agency, through any authorized 
representative thereof, has the right to inspect the plans and to 
audit the books and records of a prime contractor or subcontractor 
engaged in the performance of a cost or cost-plus-a-fixed-fee con-
tract. 
§ 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 
contracts are appropriate; 
(2) the acquisition plan findings necessary to support a deci-
sion to use cost-reimbursement contracts; and 
(3) the acquisition workforce resources necessary to award 
and manage 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— 
(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 
promulgated 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 Sep-
tember 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 sub-
section (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 Rep-
resentatives and the Senate; and
H. R. 1107—102 
(4) in the case of the Department of Defense and the Depart-
ment 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 
contract’’ 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 property 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 
(B) provides for the issuance of orders for the perform-
ance of tasks during the period of the contract. 
§ 4102. Authorities or responsibilities not affected 
This chapter does not modify or supersede, and is not intended 
to impair or restrict, authorities or responsibilities under sections 
1101 to 1104 of title 40. 
§ 4103. General authority 
(a) AUTHORITY TO AWARD.—Subject to the requirements of this 
section, section 4106 of this title, and other applicable law, the 
head of an executive agency may enter into a task or delivery 
order contract for procurement of services or property. 
(b) SOLICITATION.—The solicitation for a task or delivery order 
contract shall include— 
(1) the period of the contract, including the number of options 
to extend the contract and the period for which the contract 
may be extended under each option; 
(2) the maximum quantity or dollar value of the services 
or property to be procured under the contract; and 
(3) a statement of work, specifications, or other description 
that reasonably describes the general scope, nature, complexity, 
and purposes of the services or property to be procured under 
the contract. 
(c) APPLICABILITY OF RESTRICTION ON USE OF NONCOMPETITIVE 
PROCEDURES.—The head of an executive agency may use procedures 
other than competitive procedures to enter into a task or delivery 
order contract under this section only if an exception in section 
3304(a) of this title applies to the contract and the use of those 
procedures is approved in accordance with section 3304(e) of this 
title. 
(d) SINGLE AND MULTIPLE CONTRACT AWARDS.— 
(1) EXERCISE
OF
AUTHORITY.—The head of an executive 
agency may exercise the authority provided in this section—