10 U.S. Code § 2332 - Share-in-savings contracts

(a) Authority To Enter Into Share-in-Savings Contracts.—
(1) The head of an agency may enter into a share-in-savings contract for information technology (as defined in section 11101 (6) of title 40) in which the Government awards a contract to improve mission-related or administrative processes or to accelerate the achievement of its mission and share with the contractor in savings achieved through contract performance.
(2)
(A) Except as provided in subparagraph (B), a share-in-savings contract shall be awarded for a period of not more than five years.
(B) A share-in-savings contract may be awarded for a period greater than five years, but not more than 10 years, if the head of the agency determines in writing prior to award of the contract that—
(i) the level of risk to be assumed and the investment to be undertaken by the contractor is likely to inhibit the government from obtaining the needed information technology competitively at a fair and reasonable price if the contract is limited in duration to a period of five years or less; and
(ii) usage of the information technology to be acquired is likely to continue for a period of time sufficient to generate reasonable benefit for the government.
(3) Contracts awarded pursuant to the authority of this section shall, to the maximum extent practicable, be performance-based contracts that identify objective outcomes and contain performance standards that will be used to measure achievement and milestones that must be met before payment is made.
(4) Contracts awarded pursuant to the authority of this section shall include a provision containing a quantifiable baseline that is to be the basis upon which a savings share ratio is established that governs the amount of payment a contractor is to receive under the contract. Before commencement of performance of such a contract, the senior procurement executive of the agency shall determine in writing that the terms of the provision are quantifiable and will likely yield value to the Government.
(5)
(A) The head of the agency may retain savings realized through the use of a share-in-savings contract under this section that are in excess of the total amount of savings paid to the contractor under the contract, but may not retain any portion of such savings that is attributable to a decrease in the number of civilian employees of the Federal Government performing the function. Except as provided in subparagraph (B), savings shall be credited to the appropriation or fund against which charges were made to carry out the contract and shall be used for information technology.
(B) Amounts retained by the agency under this subsection shall—
(i) without further appropriation, remain available until expended; and
(ii) be applied first to fund any contingent liabilities associated with share-in-savings procurements that are not fully funded.
(b) Cancellation and Termination.—
(1) If funds are not made available for the continuation of a share-in-savings contract entered into under this section in a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid out of—
(A) appropriations available for the performance of the contract;
(B) appropriations available for acquisition of the information technology procured under the contract, and not otherwise obligated; or
(C) funds subsequently appropriated for payments of costs of cancellation or termination, subject to the limitations in paragraph (3).
(2) The amount payable in the event of cancellation or termination of a share-in-savings contract shall be negotiated with the contractor at the time the contract is entered into.
(3)
(A) Subject to subparagraph (B), the head of an agency may enter into share-in-savings contracts under this section in any given fiscal year even if funds are not made specifically available for the full costs of cancellation or termination of the contract if funds are available and sufficient to make payments with respect to the first fiscal year of the contract and the following conditions are met regarding the funding of cancellation and termination liability:
(i) The amount of unfunded contingent liability for the contract does not exceed the lesser of—
(I) 25 percent of the estimated costs of a cancellation or termination; or
(II) $5,000,000.
(ii) Unfunded contingent liability in excess of $1,000,000 has been approved by the Director of the Office of Management and Budget or the Director’s designee.
(B) The aggregate number of share-in-savings contracts that may be entered into under subparagraph (A) by all agencies to which this chapter applies in a fiscal year may not exceed 5 in each of fiscal years 2003, 2004, and 2005.
(c) Definitions.— In this section:
(1) The term “contractor” means a private entity that enters into a contract with an agency.
(2) The term “savings” means—
(A) monetary savings to an agency; or
(B) savings in time or other benefits realized by the agency, including enhanced revenues (other than enhanced revenues from the collection of fees, taxes, debts, claims, or other amounts owed the Federal Government).
(3) The term “share-in-savings contract” means a contract under which—
(A) a contractor provides solutions for—
(i) improving the agency’s mission-related or administrative processes; or
(ii) accelerating the achievement of agency missions; and
(B) the head of the agency pays the contractor an amount equal to a portion of the savings derived by the agency from—
(i) any improvements in mission-related or administrative processes that result from implementation of the solution; or
(ii) acceleration of achievement of agency missions.
(d) Termination.— No share-in-savings contracts may be entered into under this section after September 30, 2005.

Source

(Added Pub. L. 107–347, title II, § 210(a)(1),Dec. 17, 2002, 116 Stat. 2932.)
Effective Date

Section effective 120 days after Dec. 17, 2002, see section 402(a) ofPub. L. 107–347, set out as a note under section 3601 of Title 44, Public Printing and Documents.

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10 USCDescription of ChangeSession YearPublic LawStatutes at Large

This is a list of parts within the Code of Federal Regulations for which this US Code section provides rulemaking authority.

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48 CFR - Federal Acquisition Regulations System

48 CFR Part 1 - FEDERAL ACQUISITION REGULATIONS SYSTEM

48 CFR Part 2 - DEFINITIONS OF WORDS AND TERMS

48 CFR Part 3 - IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

48 CFR Part 4 - ADMINISTRATIVE MATTERS

48 CFR Part 5 - PUBLICIZING CONTRACT ACTIONS

48 CFR Part 6 - COMPETITION REQUIREMENTS

48 CFR Part 7 - ACQUISITION PLANNING

48 CFR Part 8 - REQUIRED SOURCES OF SUPPLIES AND SERVICES

48 CFR Part 9 - CONTRACTOR QUALIFICATIONS

48 CFR Part 10 - MARKET RESEARCH

48 CFR Part 11 - DESCRIBING AGENCY NEEDS

48 CFR Part 12 - ACQUISITION OF COMMERCIAL ITEMS

48 CFR Part 13 - SIMPLIFIED ACQUISITION PROCEDURES

48 CFR Part 14 - SEALED BIDDING

48 CFR Part 15 - CONTRACTING BY NEGOTIATION

48 CFR Part 16 - TYPES OF CONTRACTS

48 CFR Part 17 - SPECIAL CONTRACTING METHODS

48 CFR Part 18 19

48 CFR Part 22 - APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

48 CFR Part 23 - ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

48 CFR Part 24 - PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

48 CFR Part 25 - FOREIGN ACQUISITION

48 CFR Part 26 - OTHER SOCIOECONOMIC PROGRAMS

48 CFR Part 27 - PATENTS, DATA, AND COPYRIGHTS

48 CFR Part 28 - BONDS AND INSURANCE

48 CFR Part 29 - TAXES

48 CFR Part 30 - COST ACCOUNTING STANDARDS ADMINISTRATION

48 CFR Part 31 - CONTRACT COST PRINCIPLES AND PROCEDURES

48 CFR Part 32 - CONTRACT FINANCING

48 CFR Part 33 - PROTESTS, DISPUTES, AND APPEALS

48 CFR Part 34 - MAJOR SYSTEM ACQUISITION

48 CFR Part 35 - RESEARCH AND DEVELOPMENT CONTRACTING

48 CFR Part 36 - CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

48 CFR Part 37 - SERVICE CONTRACTING

48 CFR Part 38 - FEDERAL SUPPLY SCHEDULE CONTRACTING

48 CFR Part 39 - ACQUISITION OF INFORMATION TECHNOLOGY

48 CFR Part 41 - ACQUISITION OF UTILITY SERVICES

48 CFR Part 42 - CONTRACT ADMINISTRATION AND AUDIT SERVICES

48 CFR Part 43 - CONTRACT MODIFICATIONS

48 CFR Part 44 - SUBCONTRACTING POLICIES AND PROCEDURES

48 CFR Part 45 - GOVERNMENT PROPERTY

48 CFR Part 46 - QUALITY ASSURANCE

48 CFR Part 47 - TRANSPORTATION

48 CFR Part 48 - VALUE ENGINEERING

48 CFR Part 49 - TERMINATION OF CONTRACTS

48 CFR Part 50 - EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT

48 CFR Part 51 - USE OF GOVERNMENT SOURCES BY CONTRACTORS

48 CFR Part 52 - SOLICITATION PROVISIONS AND CONTRACT CLAUSES

48 CFR Part 53 - FORMS

48 CFR Part 5433 - PROTESTS, DISPUTES AND APPEALS

 

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