REPORT ON USE OF OFF-SHORE SUBSIDIARIES BY DEFENSE CONTRACTORS.

SEC. 844. REPORT ON USE OF OFF-SHORE SUBSIDIARIES BY DEFENSE CONTRACTORS.(a) Report Required.—Not later than one year after the date of the enactment of this Act, the Comptroller General shall provide a report to the Committees on Armed Services of the Senate and the House of Representatives on the use of off-shore subsidiaries by contractors of the Department of Defense.(b) Matters Covered.—The report shall comprehensively examine the rationale, implications, and costs and benefits for both 122 STAT. 4541 the contractor and the Department of Defense in using off-shore subsidiaries, particularly in respect to—(1) tax liability (including corporate income taxes and payroll taxes);(2) legal liability;(3) compliance with cost accounting standards;(4) efficiency in contract performance;(5) contract management and contract oversight; and(6) such other areas as the Comptroller General determines appropriate.