CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.

SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS. (a) Repeal of Requirement for Report on Waivers.— Subsection (e) of section 2403 of title 10, United States Code, is amended— (1) by striking out “(1)” and (2) by striking out paragraph (2). (b) Provisions To Be Addressed by Regulations.— Subsection (h) of such section is amended— (1) by redesignating paragraph (2) as paragraph (3); and (2) by inserting after paragraph (1) the following new paragraph (2): “(2) The regulations shall include the following: “(A) Guidelines for negotiating contractor guarantees that are reasonable and cost effective, as determined on the basis of the likelihood of defects and the estimated cost of correcting such defects. “(B) Procedures for administering contractor guarantees. “(C) Guidelines for determining the cases in which it may be appropriate to waive the requirements of this section.”.