284
made under this subsection and receives benefits under part
A of title XVIII of the Social Security Act.
(f) INFORMATION REGARDING ELIGIBLE COVERED
BENEFICIARIES.—The Secretary shall provide, in a timely
manner, a designated provider with an accurate list of cov-
ered beneficiaries within the marketing area of the des-
ignated provider to whom the designated provider may offer
enrollment.
SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.
(a) APPLICATION OF PAYMENT RULES.—Subject to
subsection (b), the Secretary shall require a private facility
or health care provider that is a health care provider under
the Civilian Health and Medical Program of the Uniformed
Services to apply the payment rules described in section
1074(c) of title 10, United States Code, in imposing charges
for health care that the private facility or provider provides
to enrollees of a designated provider.
(b) AUTHORIZED ADJUSTMENTS.—The payment rules
imposed under subsection (a) shall be subject to such modi-
fications as the Secretary considers appropriate. The Sec-
retary may authorize a lower rate than the maximum rate
that would otherwise apply under subsection (a) if the lower
rate is agreed to by the designated provider and the private
facility or health care provider.
285
(c) REGULATIONS.—The Secretary shall prescribe reg-
ulations to implement this section after consultation with
the other administering Secretaries.
(d) CONFORMING AMENDMENT.—Section 1074 of title
10, United States Code, is amended by striking out sub-
section (d).
SEC. 726. PAYMENTS FOR SERVICES.
(a) FORM OF PAYMENT.—Unless otherwise agreed to
by the Secretary and a designated provider, the form of
payment for services provided by a designated provider
shall be full risk capitation. The capitation payments shall
be negotiated and agreed upon by the Secretary and the
designated provider. In addition to such other factors as
the parties may agree to apply, the capitation payments
shall be based on the utilization experience of enrollees and
competitive market rates for equivalent health care services
for a comparable population to such enrollees in the area
in which the designated provider is located.
(b) LIMITATION ON TOTAL PAYMENTS.—Total capita-
tion payments to a designated provider shall not exceed an
amount equal to the cost that would have been incurred by
the Government if the enrollees had received their care
through a military treatment facility, the TRICARE pro-
gram, or the medicare program, as the case may be.
286
(c) ESTABLISHMENT OF PAYMENT RATES ON ANNUAL
BASIS.—The Secretary and a designated provider shall es-
tablish capitation payments on an annual basis, subject to
periodic review for actuarial soundness and to adjustment
for any adverse or favorable selection reasonably antici-
pated to result from the design of the program.
(d) ALTERNATIVE BASIS
FOR CALCULATING PAY-
MENTS.—After September 30, 1999, the Secretary and a
designated provider may mutually agree upon a new basis
for calculating capitation payments.
SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.
(a) REPEALS.—The following provisions of law are re-
pealed:
(1) Section 911 of the Military Construction Au-
thorization Act, 1982 (42 U.S.C. 248c).
(2) Section 1252 of the Department of Defense
Authorization Act, 1984 (42 U.S.C. 248d).
(3) Section 718(c) of the National Defense Au-
thorization Act for Fiscal year 1991 (Public Law
101–510; 42 U.S.C. 248c note).
(4) Section 726 of the National Defense Author-
ization Act for Fiscal Year 1996 (Public Law 104–
106; 42 U.S.C. 248c note).
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 1997.
287
Subtitle D—Other Changes to Exist-
ing 
Laws 
Regarding 
Health
Care Management
SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION RE-
GARDING 
NONMEDICALLY 
NECESSARY
TREATMENT IN CONNECTION WITH CERTAIN
CLINICAL TRIALS.
(a) WAIVER AUTHORITY.—Paragraph (13) of section
1079(a) of title 10, United States Code, is amended—
(1) by striking out ‘‘any service’’ and inserting
in lieu thereof ‘‘Any service’’;
(2) by striking out the semicolon at the end and
inserting in lieu thereof a period; and
(3) by adding at the end the following: ‘‘Pursu-
ant to an agreement with the Secretary of Health and
Human Services and under such regulations as the
Secretary of Defense may prescribe, the Secretary of
Defense may waive the operation of this paragraph in
connection with clinical trials sponsored or approved
by the National Institutes of Health if the Secretary
of Defense determines that such a waiver will promote
access by covered beneficiaries to promising new
treatments and contribute to the development of such
treatments.’’.
288
(b) CLERICAL AMENDMENTS.—Such section is further
amended—
(1) in the matter preceding paragraph (1), by
striking out ‘‘except that—’’ and inserting in lieu
thereof ‘‘except as follows:’’;
(2) by capitalizing the first letter of the first
word of each of paragraphs (1) through (17);
(3) by striking out the semicolon at the end of
each of paragraphs (1) through (15) and inserting in
lieu thereof a period; and
(4) in paragraph (16), by striking out ‘‘; and’’
and inserting in lieu thereof a period.
SEC. 732. AUTHORITY TO WAIVE OR REDUCE CHAMPUS DE-
DUCTIBLE 
AMOUNTS 
FOR 
RESERVISTS
CALLED TO ACTIVE DUTY IN SUPPORT OF
CONTINGENCY OPERATIONS.
Section 1079(b) of title 10, United States Code, is
amended—
(1) by redesignating paragraphs (1) through (5)
as subparagraphs (A) through (E), respectively;
(2) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(3) in subparagraph (B), as so redesignated, by
striking out ‘‘clause (3)’’ and inserting in lieu thereof
‘‘subparagraph (C)’’;
(4) in subparagraph (D), as so redesignated—
289
(A) by striking out ‘‘this clause’’ and insert-
ing in lieu thereof ‘‘this subparagraph’’; and
(B) by striking out ‘‘clauses (2) and (3)’’
and inserting in lieu thereof ‘‘subparagraphs (B)
and (C)’’; and
(5) by adding at the end the following new para-
graph:
‘‘(2) The Secretary of Defense may waive or reduce the
deductible amounts required by subparagraphs (B) and (C)
of paragraph (1) in the case of the dependents of a member
of a reserve component of the uniformed services who serves
on active duty in support of a contingency operation under
a call or order to active duty of less than one year.’’.
SEC. 733. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS
TO INDIVIDUAL HEALTH-CARE PROVIDERS
UNDER CHAMPUS.
Section 1079(h) of title 10, United States Code, is
amended—
(1) by redesignating paragraph (5) as para-
graph (6); and
(2) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) Except in an area in which the Secretary of De-
fense has entered into an at-risk contract for the provision
of health care services, the Secretary may authorize the com-
290
mander of a facility of the uniformed services, the lead
agent (if other than the commander), and the health care
contractor to modify the payment limitations under para-
graph (1) for certain health care providers when necessary
to ensure both the availability of certain services for covered
beneficiaries and costs lower than standard CHAMPUS for
the required services.’’.
SEC. 734. CODIFICATION OF ANNUAL AUTHORITY TO CRED-
IT CHAMPUS REFUNDS TO CURRENT YEAR
APPROPRIATION.
(a) CODIFICATION.—(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1079 the
following new section:
‘‘§ 1079a. CHAMPUS: treatment of refunds and other
amounts collected
‘‘All refunds and other amounts collected in the admin-
istration of the Civilian Health and Medical Program of
the Uniformed Services shall be credited to the appropria-
tion supporting the program in the year in which the
amount is collected.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
1079 the following new item:
‘‘1079a. CHAMPUS: treatment of refunds and other amounts collected.’’.
291
(b) CONFORMING REPEAL.—Section 8094 of the De-
partment of Defense Appropriations Act, 1996 (Public Law
104–61; 109 Stat. 671), is repealed.
SEC. 735. EXCEPTIONS TO REQUIREMENTS REGARDING OB-
TAINING NONAVAILABILITY-OF-HEALTH-CARE
STATEMENTS.
(a) REFERENCE TO INPATIENT MEDICAL CARE.—(1)
Section 1080(a) of title 10, United States Code, is amended
by inserting ‘‘inpatient’’ before ‘‘medical care’’ in the first
sentence.
(2) Section 1086(e) of such title is amended in the first
sentence by striking out ‘‘benefits’’ and inserting in lieu
thereof ‘‘inpatient medical care’’.
(b) WAIVERS AND EXCEPTIONS TO REQUIREMENTS.—
(1) Section 1080 of such title is amended by adding at the
end the following new subsection:
‘‘(c) WAIVERS AND EXCEPTIONS TO REQUIREMENTS.—
(1) A covered beneficiary enrolled in a managed care plan
offered pursuant to any contract or agreement under this
chapter for the provision of health care services shall not
be required to obtain a nonavailability-of-health-care state-
ment as a condition for the receipt of health care.
‘‘(2) The Secretary of Defense may waive the require-
ment to obtain nonavailability-of-health-care statements
following an evaluation of the effectiveness of such state-
292
ments in optimizing the use of facilities of the uniformed
services.’’.
(2) Section 1086(e) of such title is amended in the last
sentence by striking out ‘‘section 1080(b)’’ and inserting in
lieu thereof ‘‘subsections (b) and (c) of section 1080’’.
(c) CONFORMING AMENDMENT.—Section 1080(b) of
such title is amended—
(1) by striking out ‘‘NONAVAILABILITY
OF
HEALTH CARE STATEMENTS’’ and inserting in lieu
thereof ‘‘NONAVAILABILITY-OF-HEALTH-CARE STATE-
MENTS; and
(2) by striking out ‘‘nonavailability of health
care statement’’ and inserting in lieu thereof ‘‘non-
availability of health care statement’’.
SEC. 736. EXPANSION OF COLLECTION AUTHORITIES FROM
THIRD-PARTY PAYERS.
(a) EXPANSION OF COLLECTION AUTHORITIES.—Sec-
tion 1095 of title 10, United States Code, is amended—
(1) in subsection (g)(1), by inserting ‘‘or
through’’ after ‘‘provided at’’;
(2) in subsection (h)(1), by inserting before the
period at the end of the first sentence the following:
‘‘and a workers’ compensation program or plan’’; and
(3) in subsection (h)(2)—
293
(A) by striking ‘‘organization and’’ and in-
serting in lieu thereof ‘‘organization,’’; and
(B) by inserting before the period at the end
the following: ‘‘, and personal injury protection
or medical payments benefits in cases involving
personal injuries resulting from operation of a
motor vehicle’’.
(b) INCLUSION OF THIRD PARTY PAYER IN COLLEC-
TION EFFORTS.—Section 1079(j)(1) of such title is amended
by inserting after ‘‘or health plan’’ the following: ‘‘(includ-
ing any plan offered by a third-party payer (as defined
in section 1095(h)(1) of this title))’’.
Subtitle E—Other Matters
SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLI-
GATION UNDER ARMED FORCES HEALTH
PROFESSIONS SCHOLARSHIP AND FINANCIAL
ASSISTANCE 
PROGRAM 
AND 
UNIFORMED
SERVICES 
UNIVERSITY 
OF 
THE 
HEALTH
SCIENCES.
(a) ARMED FORCES HEALTH PROFESSIONS SCHOLAR-
SHIP AND FINANCIAL ASSISTANCE PROGRAM.—Subsection
(e) of section 2123 of title 10, United States Code, is amend-
ed to read as follows:
‘‘(e)(1) A member of the program who is relieved of
the member’s active duty obligation under this subchapter
294
before the completion of that active duty obligation may be
given, with or without the consent of the member, any of
the following alternative obligations, as determined by the
Secretary of the military department concerned:
‘‘(A) A service obligation in a component of the
Selected Reserve for a period not less than twice as
long as the member’s remaining active duty service
obligation.
‘‘(B) A service obligation as a civilian employee
employed as a health care professional in a facility
of the uniformed services for a period of time equal
to the member’s remaining active duty service obliga-
tion.
‘‘(C) With the concurrence of the Secretary of
Health and Human Services, transfer of the active
duty service obligation to an obligation equal in time
in the National Health Service Corps under section
338C of the Public Health Service Act (42 U.S.C.
254m) and subject to all requirements and procedures
applicable to obligated members of the National
Health Service Corps.
‘‘(D) Repayment to the Secretary of Defense of
a percentage of the total cost incurred by the Sec-
retary under this subchapter on behalf of the member
295
equal to the percentage of the member’s total active
duty service obligation being relieved, plus interest.
‘‘(2) The Secretary of Defense shall prescribe regula-
tions describing the manner in which an alternative obliga-
tion may be given under paragraph (1).’’.
(b) UNIFORMED
SERVICES
UNIVERSITY
OF
THE
HEALTH SCIENCES.—Section 2114 of title 10, United
States Code is amended by adding at the end the following
new subsection:
‘‘(h) A graduate of the University who is relieved of
the graduate’s active-duty service obligation under sub-
section (b) before the completion of that active-duty service
obligation may be given, with or without the consent of the
graduate, an alternative obligation comparable to the alter-
native obligations authorized in subparagraphs (A) and (B)
of section 2123(e)(1) of this title for members of the Armed
Forces Health Professions Scholarship and Financial As-
sistance program.’’.
(c) APPLICATION OF AMENDMENTS.—The amendments
made by this section shall apply with respect to individuals
who first become members of the Armed Forces Health Pro-
fessions Scholarship and Financial Assistance program or
students of the Uniformed Services University of the Health
Sciences on or after October 1, 1996.
296
(d) TRANSITION PROVISION.—(1) In the case of any
member of the Armed Forces Health Professions Scholarship
and Financial Assistance program who, as of October 1,
1996, is serving an active duty obligation under the pro-
gram or is incurring an active duty obligation as a partici-
pant in the program, and who is subsequently relieved of
the active duty obligation before the completion of the obli-
gation, the alternative obligations authorized by the amend-
ment made by subsection (a) may be used by the Secretary
of the military department concerned with the agreement
of the member.
(2) In the case of any person who, as of October 1,
1996, is serving an active-duty service obligation as a grad-
uate of the Uniformed Services University of the Health
Sciences or is incurring an active-duty service obligation
as a student of the University, and who is subsequently re-
lieved of the active-duty service obligation before the comple-
tion of the obligation, the alternative obligations authorized
by the amendment made by subsection (b) may be imple-
mented by the Secretary of Defense with the agreement of
the person.
297
SEC. 742. EXCEPTION TO STRENGTH LIMITATIONS FOR
PUBLIC 
HEALTH 
SERVICE 
OFFICERS 
AS-
SIGNED TO DEPARTMENT OF DEFENSE.
Section 206 of the Public Health Service Act (42
U.S.C. 207) is amended by adding at the end the following
new subsection:
‘‘(f) In computing the maximum number of commis-
sioned officers of the Public Health Service authorized by
law or administrative determination to serve on active
duty, there may be excluded from such computation officers
who are assigned to duty in the Department of Defense.’’.
SEC. 743. CONTINUED OPERATION OF UNIFORMED SERV-
ICES UNIVERSITY OF THE HEALTH SCIENCES.
(a) CLOSURE PROHIBITED.—In light of the important
role of the Uniformed Services University of the Health
Sciences in providing trained health care providers for the
uniformed services, Congress reaffirms the requirement con-
tained in section 922 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat
2829) that the Uniformed Services University of the Health
Sciences may not be closed.
(b) BUDGETARY COMMITMENT TO CONTINUATION.—It
is the sense of Congress that the Secretary of Defense should
budget for the operation of the Uniformed Services Univer-
sity of the Health Sciences during fiscal year 1998 at a
298
level at least equal to the level of operations conducted at
the University during fiscal year 1995.
SEC. 744. SENSE OF CONGRESS REGARDING TAX TREAT-
MENT OF ARMED FORCES HEALTH PROFES-
SIONS SCHOLARSHIP AND FINANCIAL ASSIST-
ANCE PROGRAM.
It is the sense of Congress that the Secretary of Defense
should work with the Secretary of the Treasury to interpret
section 117 of the Internal Revenue Code of 1986 so that
the limitation on the amount of a qualified scholarship or
qualified tuition reduction excluded from gross income does
not apply to any portion of a scholarship or financial as-
sistance provided by the Secretary of Defense to a person
enrolled in the Armed Forces Health Professions Scholar-
ship and Financial Assistance program under subchapter
I of chapter 105 of title 10, United States Code.
SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT
FACILITY PROGRAM.
Not later than April 1, 1997, the Secretary of Defense
shall submit to Congress a report evaluating the impact on
the military health care system of limiting the service area
of a facility designated as part of the specialized treatment
facility program under section 1105 of title 10, United
States Code, to not more than 100 miles from the facility.
299
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Acquisition
Management
SEC. 801. AUTHORITY TO WAIVE CERTAIN REQUIREMENTS
FOR 
DEFENSE 
ACQUISITION 
PILOT 
PRO-
GRAMS.
(a) AUTHORITY.—The Secretary of Defense may waive
sections 2399, 2403, 2432, and 2433 of title 10, United
States Code, in accordance with this section for any defense
acquisition program designated by the Secretary of Defense
for participation in the defense acquisition pilot program
authorized by section 809 of the National Defense Author-
ization Act for Fiscal Year 1991 (Public Law 101–510; 10
U.S.C. 2340 note).
(b) OPERATIONAL TEST AND EVALUATION.—The Sec-
retary of Defense may waive the requirements for oper-
ational test and evaluation for such a defense acquisition
program as set forth in section 2399 of title 10, United
States Code, if the Secretary—
(1) determines (without delegation) that such test
would be unreasonably expensive or impractical;
300
(2) develops a suitable alternate operational test
program for the system concerned;
(3) describes in the test and evaluation master
plan, as approved by the Director of Operational Test
and Evaluation, the method of evaluation that will be
used to evaluate whether the system will be effective
and suitable for combat; and
(4) submits to the congressional defense commit-
tees a report containing the determination that was
made under paragraph (1), a justification for that de-
termination, and a copy of the plan required by
paragraph (3).
(c) CONTRACTOR GUARANTEES FOR MAJOR WEAPONS
SYSTEMS.—The Secretary of Defense may waive the re-
quirements of section 2403 of title 10, United States Code,
for such a defense acquisition program if an alternative
guarantee is used that ensures high quality weapons sys-
tems.
(d) SELECTED
ACQUISITION REPORTS.—The Sec-
retary of Defense may waive the requirements of sections
2432 and 2433 of title 10, United States Code, for such a
defense acquisition program if the Secretary provides a sin-
gle annual report to Congress at the end of each fiscal year
that describes the status of the program in relation to the
301
baseline description for the program established under sec-
tion 2435 of such title.
SEC. 802. EXCLUSION FROM CERTAIN POST-EDUCATION
DUTY ASSIGNMENTS FOR MEMBERS OF AC-
QUISITION CORPS.
Section 663(d) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(3) The Secretary of Defense may exclude from the
requirements of paragraph (1) or (2) an officer who is a
member of an Acquisition Corps established pursuant to
1731 of this title if the officer—
‘‘(A) has graduated from a senior level course of
instruction designed for personnel serving in critical
acquisition positions; and
‘‘(B) is assigned, upon graduation, to a critical
acquisition position designated pursuant to section
1733 of this title.’’.
SEC. 803. EXTENSION OF AUTHORITY TO CARRY OUT CER-
TAIN PROTOTYPE PROJECTS.
(a) AUTHORITY.—Section 845(a) of the National De-
fense Authorization Act for Fiscal Year 1994 (Public Law
103–160; 107 Stat. 1721) is amended by inserting after
‘‘Agency’’ the following: ‘‘, the Secretary of a military de-
partment, or any other official designated by the Secretary
of Defense’’.
302
(b) PERIOD OF AUTHORITY.—Section 845(c) of such
Act is amended by striking out ‘‘3 years after the date of
the enactment of this Act’’ and inserting in lieu thereof ‘‘on
September 30, 1999’’.
(c) CONFORMING
AND TECHNICAL AMENDMENTS.—
Section 845 of such Act is further amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking out
‘‘(c)(2) and (c)(3) of such section 2371, as redes-
ignated by section 827(b)(1)(B),’’ and inserting
in lieu thereof ‘‘(e)(2) and (e)(3) of such section
2371’’; and
(B) in paragraph (2), by inserting after
‘‘Director’’ the following: ‘‘, Secretary, or other
official’’; and
(2) in subsection (c), by striking out ‘‘of the Di-
rector’’.
SEC. 804. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR
SYSTEMS.
Section 2302(5) of title 10, United States Code, is
amended—
(1) by striking out ‘‘$75,000,000 (based on fiscal
year 1980 constant dollars)’’ and inserting in lieu
thereof ‘‘$115,000,000 (based on fiscal year 1990 dol-
lars)’’;
303
(2) by striking out ‘‘$300,000,000 (based on fis-
cal year 1980 constant dollars)’’ and inserting in lieu
thereof ‘‘$540,000,000 (based on fiscal year 1990 con-
stant dollars)’’; and
(3) by adding at the end the following: ‘‘The Sec-
retary of Defense may adjust the amounts and the
base fiscal year provided in clause (A) on the basis
of Department of Defense escalation rates. An adjust-
ment under this paragraph shall be effective after the
Secretary transmits to the Committee on Armed Serv-
ices of the Senate and the Committee on National Se-
curity of the House of Representatives a written noti-
fication of the adjustment.’’.
SEC. 805. REVISIONS IN INFORMATION REQUIRED TO BE IN-
CLUDED 
IN 
SELECTED 
ACQUISITION 
RE-
PORTS.
Section 2432 of title 10, United States Code, is amend-
ed—
(1) in subsection (c)—
(A) by striking out ‘‘and’’ at the end of sub-
paragraph (B);
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (B) the
following new subparagraph (C):
304
‘‘(C) the current procurement unit cost for each
major defense acquisition program included in the re-
port and the history of that cost from the date the
program was first included in a Selected Acquisition
Report to the end of the quarter for which the current
report is submitted; and’’; and
(2) in subsection (e), by striking out paragraph
(8) and redesignating paragraph (9) as paragraph
(8).
SEC. 806. INCREASE IN SIMPLIFIED ACQUISITION THRESH-
OLD FOR HUMANITARIAN OR PEACEKEEPING
OPERATIONS.
Section 2302(7) of title 10, United States Code, is
amended—
(1) by inserting ‘‘(A)’’ after ‘‘(7)’’;
(2) by inserting after ‘‘contingency operation’’
the following: ‘‘or a humanitarian or peacekeeping
operation’’; and
(3) by adding at the end the following:
‘‘(B) In subparagraph (A), the term ‘humani-
tarian or peacekeeping operation’ means a military
operation in support of the provision of humani-
tarian or foreign disaster assistance or in support of
a peacekeeping operation under chapter VI or VII of
the Charter of the United Nations. The term does not
305
include routine training, force rotation, or station-
ing.’’.
SEC. 807. EXPANSION OF AUDIT RECIPROCITY AMONG FED-
ERAL AGENCIES TO INCLUDE POST-AWARD
AUDITS.
(a) ARMED SERVICES ACQUISITIONS.—Subsection (d)
of section 2313 of title 10, United States Code, is amended
to read as follows:
‘‘(d) LIMITATION ON AUDITS RELATING TO INDIRECT
COSTS.—The head of an agency may not perform an audit
of indirect costs under a contract, subcontract, or modifica-
tion before or after entering into the contract, subcontract,
or modification in any case in which the contracting officer
determines that the objectives of the audit can reasonably
be met by accepting the results of an audit that was con-
ducted by any other department or agency of the Federal
Government within one year preceding the date of the con-
tracting officer’s determination.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—Subsection (d)
of section 304C of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 254d) is amended to read
as follows:
‘‘(d) LIMITATION ON AUDITS RELATING TO INDIRECT
COSTS.—An executive agency may not perform an audit
of indirect costs under a contract, subcontract, or modifica-