single contractor can reasonably perform the 
work.’’. 
(2) Section 303H(d)(1) of such Act is amended 
by striking ‘‘The head’’ and inserting ‘‘Subject to 
paragraph (3), the head’’. 
(3) Subsection (e) of section 303I of such Act 
(41 United States Code 253i) is amended to read as 
follows: 
‘‘(e) MULTIPLE AWARDS.—Section 303H(d) applies 
to a task or delivery order contract for the procurement 
of advisory and assistance services under this section.’’. 
(b) DEFENSE CONTRACTS.— 
(1) Section 2304a(d) of title 10, United States 
Code, is amended by adding at the end the following 
new paragraph: 
‘‘(4)(A) The regulations implementing this sub-
section shall prohibit the award of monopoly con-
tracts. 
‘‘(B) In this subsection, the term ‘monopoly 
contract’ means a task or delivery order contract in 
an amount estimated to exceed 10,000,000 (includ-
ing all options) awarded to a single contractor. 
‘‘(C) Notwithstanding subparagraph (A), a mo-
nopoly contract may be awarded if the head of the 
agency determines in writing that— 
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‘‘(i) for one of the reasons set forth in sec-
tion 2304(c), a single task or delivery order 
contract is in the best interest of the Federal 
Government; or 
‘‘(ii) the task orders expected under the 
contract are so integrally related that only a 
single contractor can reasonably perform the 
work.’’. 
(2) Section 2304a(d)(1) of such title is amend-
ed by striking ‘‘The head’’ and inserting ‘‘Subject to 
paragraph (4), the head’’. 
(3) Subsection (e) of section 2304b of such title 
is amended to read as follows: 
‘‘(e) MULTIPLE AWARDS.—Section 2304a(d) of this 
title applies to a task or delivery order contract for the 
procurement of advisory and assistance services under this 
section.’’. 
SEC. 202. LIMITATIONS ON TIERING OF SUBCONTRACTORS. 
(a) REVISION OF FAR.—Not later than one year 
after the date of the enactment of this Act, the Federal 
Acquisition Regulation shall be revised to minimize the ex-
cessive use by contractors of subcontractors or tiers of 
subcontractors to perform the principal work of any con-
tract described in subsection (c). 
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(b) SPECIFIC REQUIREMENT.—At a minimum, the 
regulations promulgated under subsection (a) shall— 
(1) preclude a contractor from using sub-
contracts for more than 65 percent of the cost of the 
contract (not including overhead and profit), unless 
the head of the executive agency concerned deter-
mines that exceptional circumstances apply; and 
(2) preclude a subcontractor from using a lower 
tier subcontractor for more than 65 percent of the 
cost of the subcontract (not including overhead and 
profit), unless the head of the executive agency con-
cerned determines that exceptional circumstances 
apply. 
(c) COVERED CONTRACTS.—This section applies to 
any cost-reimbursement type contract in an amount great-
er than the simplified acquisition threshold entered into 
by an executive agency. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing provided in section 4(1) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(1)). 
(2) The term ‘‘head of the executive agency’’ 
means the head of an executive agency except that, 
in the case of a military department, the term means 
the Secretary of Defense. 
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SEC. 203. MINIMIZING COST-REIMBURSEMENT TYPE CON-
TRACTS. 
(a) PLANS REQUIRED.—The head of each executive 
agency covered by title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et 
seq.) and the head of each agency covered by chapter 137 
of title 10, United States Code, shall develop and imple-
ment a plan to minimize the use of cost-reimbursement 
type contracts by the agency concerned. The plan shall 
contain measurable goals and shall be completed and sub-
mitted to the Committee on Government Reform of the 
House of Representatives and the Committee on Home-
land Security and Governmental Affairs of the Senate, 
with a copy provided to the Comptroller General, not later 
than 1 year after the date of the enactment of this Act. 
(b) COMPTROLLER GENERAL REVIEW.—The Comp-
troller General shall review the plans provided under sub-
section (a) and submit a report to Congress on the plans 
not later than 18 months after the date of the enactment 
of this Act. 
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