[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2081 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 2081

      To limit Department of Defense payments to contractors for 
       restructuring costs associated with business combinations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 17, 1996

  Mr. Harkin introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
      To limit Department of Defense payments to contractors for 
       restructuring costs associated with business combinations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIMITATION OF DEPARTMENT OF DEFENSE PAYMENTS TO CONTRACTORS 
              FOR RESTRUCTURING COSTS ASSOCIATED WITH BUSINESS 
              COMBINATIONS.

    (a) Recommendations for Revisions of Law.--(1) Not later than 
February 1, 1997, the Comptroller General shall, in consultation with 
the Inspector General of the Department of Defense and the Director of 
the Office of Management and Budget, submit to Congress a report which 
shall set forth recommendations regarding the revisions of statute or 
regulation necessary--
            (A) to assure that the amount paid by the Department of 
        Defense for restructuring costs associated with a business 
        combination does not exceed the expected net financial benefit 
        to the Federal Government of the business combination;
            (B) to assure that such expected net financial benefit 
        accrues to the Federal Government; and
            (C) in the event that the amount paid exceeds the actual 
        net financial benefit, to permit the Federal Government to 
        recoup the difference between the amount paid and the actual 
        net financial benefit.
    (2) For purposes of determining the net financial benefit to the 
Federal Government of a business combination under this subsection, the 
Comptroller General shall utilize a 5-year time period and take into 
account all costs anticipated to be incurred by the Federal Government 
as a result of the business combination, including costs associated 
with the payment of unemployment compensation and costs associated with 
the retraining of workers.
    (b) Limitation on Use of Funds.--No funds appropriated or otherwise 
made available for the Department of Defense after the date of the 
enactment of this Act may be obligated or expended to process or pay 
any claim for restructuring costs associated with a business 
combination under the following:
            (1) Any contract, advance agreement, or novation agreement 
        entered into on or after July 12, 1996.
            (2) Any contract, advance agreement, or novation agreement 
        entered into before July 12, 1996, unless the contract or 
        agreement specifies that payment for costs associated with a 
        business combination shall be made under the contract using 
        funds appropriated or otherwise made available for the 
        Department after the date of the enactment of this Act.
                                 <all>