RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL ACTIONS.

SEC. 1505. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL ACTIONS. (a) Clarification of Limitation.— Subsection (b) of section 2326 of title 10, United States Code, is amended— (1) in the subsection heading, by striking out “AND EXPENDITURE”; (2) in paragraph (1)(B), by striking out “or expended”; (3) in paragraph (2), by striking out “expend” and inserting in lieu thereof “obligate”; and (4) in paragraph (3)— (A) by striking out “expended” and inserting in lieu thereof “obligated”; and (B) by striking out “expend” and inserting in lieu thereof “obligate”. (b) Waiver Authority.— Such subsection is further amended— (1) by redesignating paragraph (4) as paragraph (5); and (2) by inserting after paragraph (3) the following new paragraph (4): “(4) The head of an agency may waive the provisions of this subsection with respect to a contract of that agency if such head of an agency determines that the waiver is necessary in order to support a contingency operation.”. (c) Inapplicability of Restrictions to Contracts Within the Simplified Acquisition Threshold.— Subsection (g)(1)(B) of such section is amended by striking out “small purchase threshold” and inserting in lieu thereof “simplified acquisition threshold”.