LIMITATION ON RESTORATION OF WITHDRAWN UNOBLIGATED BALANCES

SEC. 1603. LIMITATION ON RESTORATION OF WITHDRAWN UNOBLIGATED BALANCES (a) Conditions on Restoration.—(1) Chapter 165 of title 10, United States Code, is amended by adding at the end the following new section: “§ 2782. Unobligated balances withdrawn from availability for obligation; limitations on restoration “(a) (1) If a defense funds restoral to provide funds for a program, project, or activity to cover amounts required for late contract changes would cause the the total amount of such restorals during a fiscal year for late contract changes for that program, project or activity to exceed $4,000,000, the restoral action may only be carried out if— “(A) the Secretary of the military department concerned, or the Secretary of Defense, with respect to a program, project, or activity administered by a Defense Agency, determines that such action is necessary to pay obligations and make adjustments under an existing contract; and “(B) the action is approved by the Secretary of Defense (or an officer of the Department of Defense within the Office of the Secretary of Defense to whom the Secretary has delegated the authority to approve such an action). “(2) A contract change shall be considered to be a late contract change for purposes of paragraph (1) if it is made after the end of the period of availability for obligation of the account to which funds are to be restored under the restoral action. “(b) In a case in which any defense funds restoral to provide funds for a program, project, or activity of the Department of Defense would cause the total amount so restored during a fiscal year for that program, project or activity to exceed $25,000,000, the restoral action may not be taken until— “(1) the Secretary of Defense submits to the Committees on Armed Services and the Committees on Appropriations of the Senate and House of Representatives a notice in writing of the intent to restore such funds, together with a description of the legal basis for the proposed action and the policy reasons for the proposed action; and “(2) a period of 30 days has elapsed after the notice is submitted. 103 STAT. 1598 “(c) In this section: “(1) The term ‘defense funds restoral’ means a restoration of funds authorized by section 1552(a)(2) of title 31 to an appropriation account of the Department of Defense. “(2) The term ‘contract change’ means a change to a contract under which the contractor is required to perform additional work. Such term does not include adjustments to pay claims or increases under a so-called ‘escalation clause’.”. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “2782. Unobligated balances withdrawn from availability for obligation: limitations on restoration.”. (b) Report on Status of Air Force Funds in Treasury M Account.—The Secretary of Defense shall submit to the congressional defense committees a report on the status of the availability of expired or lapsed funds of the Department of the Air Force in the Department of Treasury Account known as the “M Account”. The report shall include an accounting of all funds for the B–1B aircraft program that have been transferred to that account and the amount of those funds that have been withdrawn or obligated from that account. The report shall be submitted concurrently with the submission to Congress of the budget for fiscal year 1991.