ALLOWABLE COSTS NOT TO INCLUDE GOLDEN PARACHUTE PAYMENTS

SEC. 805. ALLOWABLE COSTS NOT TO INCLUDE GOLDEN PARACHUTE PAYMENTS (a) In General.—Section 2324(e)(1) of title 10, United States Code, is amended by adding at the end the following new subparagraph: “(K) Costs incurred in making any payment (commonly known as a ‘golden parachute payment’) which is— “(i) in an amount in excess of the normal severance pay paid by the contractor to an employee upon termination of employment; and “(ii) is paid to the employee contingent upon, and following, a change in management control over, or ownership of, the contractor or a substantial portion of the contractor's assets.” (b) Effective Date.—Subparagraph (K) of section 2324(e)(1) of title 10, United States Code, as added by subsection (a), shall apply to any contract entered into after the end of the 120-day period beginning on the date of the enactment of this Act.