H. R. 1107—107 
(1) a notice of the task or delivery order that includes a 
clear statement of the executive agency’s requirements; 
(2) a reasonable period of time to provide a proposal in 
response to the notice; 
(3) disclosure of the significant factors and subfactors, 
including cost or price, that the executive agency expects to 
consider in evaluating such proposals, and their relative impor-
tance; 
(4) in the case of an award that is to be made on a best 
value basis, a written statement documenting— 
(A) the basis for the award; and 
(B) the relative importance of quality and price or cost 
factors; and 
(5) an opportunity for a post-award debriefing consistent 
with the requirements of section 3704 of this title. 
(e) STATEMENT OF WORK.—A task or delivery order shall include 
a statement of work that clearly specifies all tasks to be performed 
or property to be delivered under the order. 
(f) PROTESTS.— 
(1) PROTEST NOT AUTHORIZED.—A protest is not authorized 
in connection with the issuance or proposed issuance of a task 
or delivery order except for— 
(A) a protest on the ground that the order increases 
the scope, period, or maximum value of the contract under 
which the order is issued; or 
(B) a protest of an order valued in excess of $10,000,000. 
(2) JURISDICTION OVER PROTESTS.—Notwithstanding section 
3556 of title 31, the Comptroller General shall have exclusive 
jurisdiction of a protest authorized under paragraph (1)(B). 
(3) EFFECTIVE
PERIOD.—This subsection shall be in effect 
for three years, beginning on the date that is 120 days after 
January 28, 2008. 
(g) TASK AND DELIVERY ORDER OMBUDSMAN.— 
(1) APPOINTMENT OR DESIGNATION AND RESPONSIBILITIES.— 
The head of each executive agency who awards multiple task 
or delivery order contracts under section 4103(d)(1)(B) or 4105(f) 
of this title shall appoint or designate a task and delivery 
order ombudsman who shall be responsible for reviewing com-
plaints from the contractors on those contracts and ensuring 
that all of the contractors are afforded a fair opportunity to 
be considered for task or delivery orders when required under 
subsection (c). 
(2) WHO IS ELIGIBLE.—The task and delivery order ombuds-
man shall be a senior agency official who is independent of 
the contracting officer for the contracts and may be the execu-
tive agency’s advocate for competition. 
CHAPTER 43—ALLOWABLE COSTS 
Sec. 
4301.
Definitions. 
4302.
Adjustment of threshold amount of covered contract. 
4303.
Effect of submission of unallowable costs. 
4304.
Specific costs not allowable. 
4305.
Required regulations. 
4306.
Applicability of regulations to subcontractors. 
4307.
Contractor certification. 
4308.
Penalties for submission of cost known to be unallowable. 
4309.
Burden of proof on contractor. 
4310.
Proceeding costs not allowable.
H. R. 1107—108 
§ 4301. Definitions 
In this chapter: 
(1) COMPENSATION.—The term ‘‘compensation’’, for a fiscal 
year, means the total amount of wages, salary, bonuses, and 
deferred compensation for the fiscal year, whether paid, earned, 
or otherwise accruing, as recorded in an employer’s cost 
accounting records for the fiscal year. 
(2) COVERED CONTRACT.—The term ‘‘covered contract’’ means 
a contract for an amount in excess of $500,000 that is entered 
into by an executive agency, except that the term does not 
include a fixed-price contract without cost incentives or any 
firm fixed-price contract for the purchase of commercial items. 
(3) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year 
established by a contractor for accounting purposes. 
(4) SENIOR EXECUTIVE.—The term ‘‘senior executive’’, with 
respect to a contractor, means the 5 most highly compensated 
employees in management positions at each home office and 
each segment of the contractor. 
§ 4302. Adjustment of threshold amount of covered contract 
Effective on October 1 of each year that is divisible by 5, the 
amount set forth in section 4301(2) of this title shall be adjusted 
to the equivalent amount in constant fiscal year 1994 dollars. An 
adjusted amount that is not evenly divisible by $50,000 shall be 
rounded to the nearest multiple of $50,000. If an amount is evenly 
divisible by $25,000 but is not evenly divisible by $50,000, the 
amount shall be rounded to the next higher multiple of $50,000. 
§ 4303. Effect of submission of unallowable costs 
(a) INDIRECT COST THAT VIOLATES FEDERAL ACQUISITION REGULA-
TION COST PRINCIPLE.—An executive agency shall require that a 
covered contract provide that if the contractor submits to the execu-
tive agency a proposal for settlement of indirect costs incurred 
by the contractor for any period after those costs have been accrued 
and if that proposal includes the submission of a cost that is 
unallowable because the cost violates a cost principle in the Federal 
Acquisition Regulation or an executive agency supplement to the 
Federal Acquisition Regulation, the cost shall be disallowed. 
(b) PENALTY FOR VIOLATION OF COST PRINCIPLE.— 
(1) UNALLOWABLE COST IN PROPOSAL.—If the executive agency 
determines that a cost submitted by a contractor in its proposal 
for settlement is expressly unallowable under a cost principle 
referred to in subsection (a) that defines the allowability of 
specific selected costs, the executive agency shall assess a pen-
alty against the contractor in an amount equal to— 
(A) the amount of the disallowed cost allocated to covered 
contracts for which a proposal for settlement of indirect 
costs has been submitted; plus 
(B) interest (to be computed based on provisions in the 
Federal Acquisition Regulation) to compensate the Federal 
Government for the use of the amount which a contractor 
has been paid in excess of the amount to which the con-
tractor was entitled. 
(2) COST DETERMINED TO BE UNALLOWABLE BEFORE PROPOSAL 
SUBMITTED.—If the executive agency determines that a proposal 
for settlement of indirect costs submitted by a contractor 
includes a cost determined to be unallowable in the case of