124 STAT. 2940 PUBLIC LAW 111–281—OCT. 15, 2010 new procurement action entered into by the Coast Guard for which the contractual terms, specifications, or price are not agreed upon before performance is begun under the action. ‘‘(B) EXCLUSION.—The term ‘undefinitized contractual action’ does not include contractual actions with respect to— ‘‘(i) foreign military sales; ‘‘(ii) purchases in an amount not in excess of the amount of the simplified acquisition threshold; or ‘‘(iii) special access programs. ‘‘(2) QUALIFYING PROPOSAL.—The term ‘‘qualifying proposal’ means a proposal that contains sufficient information to enable complete and meaningful audits of the information contained in the proposal as determined by the contracting officer. ‘‘§ 568. Guidance on excessive pass-through charges ‘‘(a) IN GENERAL.—Not later than 180 days after the date of enactment of the Coast Guard Authorization Act for Fiscal Years 2010 and 2011, the Commandant shall issue guidance to ensure that pass-through charges on contracts, subcontracts, delivery orders, and task orders that are entered into with a private entity acting as a lead systems integrator by or on behalf of the Coast Guard are not excessive in relation to the cost of work performed by the relevant contractor or subcontractor. The guidance shall, at a minimum— ‘‘(1) set forth clear standards for determining when no, or negligible, value has been added to a contract by a contractor or subcontractor; ‘‘(2) set forth procedures for preventing the payment by the Government of excessive pass-through charges; and ‘‘(3) identify any exceptions determined by the Com- mandant to be in the best interest of the Government. ‘‘(b) EXCESSIVE PASS-THROUGH CHARGE DEFINED.—In this sec- tion the term ‘excessive pass-through charge’, with respect to a contractor or subcontractor that adds no, or negligible, value to a contract or subcontract, means a charge to the Government by the contractor or subcontractor that is for overhead or profit on work performed by a lower tier contractor or subcontractor, other than reasonable charges for the direct costs of managing lower tier contractors and subcontracts and overhead and profit based on such direct costs. ‘‘(c) APPLICATION OF GUIDANCE.—The guidance under this sub- section shall apply to contracts awarded to a private entity acting as a lead systems integrator by or on behalf of the Coast Guard on or after the date that is 360 days after the date of enactment of the Coast Guard Authorization Act for Fiscal Years 2010 and 2011. ‘‘§ 569. Report on former Coast Guard officials employed by contractors to the agency ‘‘(a) REPORT REQUIRED.—Not later than December 31, 2011, and annually thereafter, the Comptroller General of the United States shall submit a report to the appropriate congressional committees on the employment during the preceding year by Coast Guard contractors of individuals who were Coast Guard officials in the previous 5-year period. The report shall assess the extent Deadline.
