INCENTIVES TO PRODUCE INNOVATIVE NEW TECHNOLOGIES.

SEC. 813. INCENTIVES TO PRODUCE INNOVATIVE NEW TECHNOLOGIES. (a) Review of Guidelines.—The Secretary of Defense shall review the profit guidelines established in the Department of Defense Supplement to the Federal Acquisition Regulation to consider whether appropriate modifications, such as placing increased emphasis on technical risk as a factor for determining appropriate profit margins, would provide an increased profit incentive for contractors to develop and produce complex and innovative new technologies. (b) Changes to Guidelines; Report.—Not later than 180 days after the date of the enactment of this Act, the Secretary shall— (1) make any changes to the profit guidelines that the Secretary determines to be necessary; and (2) report to Congress on the results of the review conducted under subsection (a) and on any changes to the profit guidelines 113 STAT. 711that the Secretary determines to be necessary pursuant to paragraph (1).