LIMITATION ON USE OF PRICE PREFERENCE UPON ACHIEVEMENT OF CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES.

SEC. 801. LIMITATION ON USE OF PRICE PREFERENCE UPON ACHIEVEMENT OF CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES. Section 2323(e)(3) of title 10, United States Code, is amended— (1) by inserting “(A)” after “(3)”; (2) by inserting “, except as provided in subparagraph (B),” after “the head of an agency may” in the first sentence; and (3) by adding at the end the following: “(B) (i) The Secretary of Defense may not exercise the authority under subparagraph (A) to enter into a contract for 112 STAT. 2081a price exceeding fair market cost if the regulations implementing that authority are suspended under clause (ii) with respect to that contract. “(ii) At the beginning of each fiscal year, the Secretary shall determine, on the basis of the most recent data, whether the Department of Defense achieved the 5 percent goal described in subsection (a) during the fiscal year to which the data relates. Upon determining that the Department achieved the goal for the fiscal year to which the data relates, the Secretary shall issue a suspension, in writing, of the regulations that implement the authority under subparagraph (A). Such a suspension shall be in effect for the one-year period beginning 30 days after the date on which the suspension is issued and shall apply with respect to contracts awarded pursuant to solicitations issued during that period. “(iii) For purposes of clause (ii), the term ‘most recent data’ means data relating to the most recent fiscal year for which data are available.”.