stenographic assistants as it deems necessary. The committee may reimburse the members of its staff for travel, subsistence, and other necessary expenses incurred by them in the performance of the duties vested in the select committee other than expenses in connection with meetings of the select committee held in the District of Columbia.

Sec. 5. The select committee is authorized and directed to report to the House with respect to results of its investigation as soon as is practicable but not later than one year after adoption of the resolution. Any report made when the House is not in session shall be filed with the Clerk of the House.

Sec. 6. The authority granted herein shall expire thirty days after the filing of the report with the House of Representatives.

Sec. 7. The expenses of the select committee shall be paid from the contingent fund of the House of Representatives upon vouchers signed by the chairman of the select committee and approved by the Speaker.

6. National Commitment

Senate Resolution 85, 91st Congress, Report No. 91-129, agreed to June 25, 1969

RESOLUTION

Whereas accurate definition of the term "national commitment" in recent years has become obscured: Now, therefore, be it

Resolved, That (1) a national commitment for the purpose of this resolution means the use of the Armed Forces of the United States on foreign territory, or a promise to assist a foreign country, government, or people by the use of the Armed Forces or financial resources of the United States, either immediately or upon the happening of certain events, and (2) it is the sense of the Senate that a national commitment by the United States results only from affirmative action taken by the executive and legislative branches of the United States Government by means of a treaty, statute, or concurrent resolution of both Houses of Congress specifically providing for such commitment.

7. North Atlantic Alliance

a. North Atlantic Treaty Organizational Mutual Support Act of 1979

Public Law 96–323 [H.R. 5580], 94 Stat. 1016, approved August 4, 1980, as amended by Public Law 97–22 [H.R. 3807], 95 Stat. 124 at 138, approved July 10, 1981, and by Public Law 99–145 [S. 1160], 99 Stat. 583, approved November 8, 1985

AN ACT To amend title 10, United States Code, to authorize the Secretary of Defense to enter into certain agreements to further the readiness of the military forces of the North Atlantic Treaty Organization.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "North Atlantic Treaty Organization Mutual Support Act of 1979".

Sec. 2. (a) Title 10, United States Code, is amended by inserting after chapter 137 the following new chapter:

"CHAPTER 138-NORTH ATLANTIC TREATY ORGANIZATION ACQUISITION AND CROSS-SERVICING AGREEMENTS

"Sec.

"2341. Authority to acquire logistic support supplies, and services for United States armed forces in Europe.

"2343. Law applicable to acquisition and cross-servicing agreements.

"2347. Limitation on amounts that may be obligated or accrued by the United

"§ 2341.1 Authority to acquire logistic support, supplies, and services for United States armed forces in Europe

"Subject to section 2343 of this title and subject to the availability of appropriations, the Secretary of Defense may acquire from the Governments of North Atlantic Treaty Organization countries and from North Atlantic Treaty Organization subsidiary bodies logistic support, supplies, and services for elements of the armed forces deployed in Europe and adjacent waters.

"§ 2342.1 Cross-servicing agreements

"Subject to section 2343 of this title and to the availability of appropriations, and after consultation with the Secretary of State, the

1Sec. 1304 of the DoD Authorization Act, 1986, Public Law 99-145, 99 Stat. 741 redesignated sections 2321 through 2328 as 2341 through 2348; repealed sec. 2329; and redesignated 2330 and 2331 as 2349 and 2350.

Secretary of Defense may enter into agreements with the Gover ment of any North Atlantic Treaty Organization country and w any North Atlantic Treaty Organization country and with & North Atlantic Treaty Organization subsidiary body under whic the United States agrees to provide logistic support, supplies, ar services to military forces of such country or subsidiary body ployed in Europe and adjacent waters in return for the reciproca provision of logistic support, supplies, and services by such count or subsidiary body to elements of the armed forces deployed : Europe and adjacent waters.

"§ 2343.1 Law applicable to acquisition and cross-servicing agree ments

"(a) Except as provided in subsection (b), acquisition of logist support, supplies, and services under section 2321 of this title and agreements entered into under section 2322 of this title shall b made in accordance with chapter 137 of this title and the prov sions of this chapter.

"(b) Section 2207, 2304(a),2 2306(a), 2306(b), 2306(e), 2306(f), and 2313 of this title, section 3741 of the Revised Statutes (41 U.S.C. 22 and section 719 of the Defense Production Act of 1950 (50 U.S.C App. 2168) shall not apply to acquisitions made under the authority of section 2321 of this title or to agreements entered into under sec tion 2322 of this title.

"8 2344.3 Allowable costs under defense contracts

"(a)(1) The Secretary of Defense shall require that a covered contract provide that if the contractor submits to the Department of Defense a proposal for settlement of indirect costs incurred by the contractor for any period after such costs have been accrued and if that proposal includes the submission of a cost which is unallowable because the cost violates a cost principle in the Federal Acquisition Regulation or the Department of Defense Supplement to the Federal Acquisition Regulation, the cost shall be disallowed.

"(2) If the Secretary determines by clear and convincing evidence that a cost submitted by a contractor in its proposal for settlement is unallowable under paragraph (1), the Secretary shall assess a penalty against the contractor in an amount equal to—

"(A) the amount of the disallowed costs; plus

"(B) interest (to be computed based on regulations issued by the Secretary) to compensate the United States for the use of any funds which a contractor has been paid in excess of the amount to which the contractor was entitled.

"(b) If the Secretary determines that a proposal for settlement of indirect costs submitted by a contractor includes a cost determined to be unallowable in the case of such contractor before the submission of such proposal, the Secretary shall assess a penalty against the contractor, in addition to the penalty assessed under subsection (a), in an amount equal to two times the amount of such cost.

2 Sec. 961(b) of the DoD authorization Act, 1986, Public Law 99-145, 99 Stat. 703 changed "2304(g)" to "2304(a)".

3 Sec. 2344 was comprehensively amended and restated by sec. 911 of the DOD Authorization Act, 1986, Public Law 99-145, 99 Štat. 682. These changes took effect October 1, 1985.

"(c) An action of the Secretary under subsection (a) or (b)—

"(1) shall be considered a final decision for the purposes of section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605); and

"(2) is appealable in the manner provided in section 7 of such Act (41 U.S.C. 606).

"(d) If any penalty is assessed under subsection (a) or (b) with respect to a proposal for settlement of indirect cost, the Secretary may assess an additional penalty of not more than $10,000 per proposal.

"(e)(1) The following costs are not allowable under a covered contract:

"(A) Costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities).

"(B) Cost incurred to influence (directly or indirectly) legislative action on any matter pending before Congress or a State legislature.

"(C) Costs incurred in defense of any civil or criminal fraud proceeding or similar proceeding (including filing of any false certification) brought by the United States where the contractor is found liable or has pleaded nolo contendere to a charge of fraud or similar proceeding (including filing of a false certification).

"(D) Payments of fines and penalties resulting from violations of, or failure to comply with, Federal, State, local, or foreign laws and regulations, except when incurred as a result of compliance with specific terms and conditions of the contract or specific written instructions from the contracting officer authorizing in advance such payments in accordance with applicable regulations of the Secretary of Defense.

"(E) Costs of membership in any social, dining, or country club or organization.

"(F) Costs of alcoholic beverages.

"(G) Contributions or donations, regardless of the recipient. "(H) Costs of advertising designed to promote the contractor or its products.

"(I) Costs of promotional items and memorabilia, including models, gifts, and souvenirs.

"(J) Costs for travel by commercial aircraft which exceed the amount of the standard commercial fare.

"(2) The Secretary shall prescribe regulations to implement this section. Such regulations may establish appropriate definitions, exclusions, limitations, and qualifications.

"(f(1) The Secretary shall prescribe proposed regulations to amend those provisions of the Department of Defense Supplement to the Federal Acquisition Regulation dealing with the allowability of contractor costs. The amendments shall define in detail and in specific terms those costs which are unallowable, in whole or in part, under covered contracts. These regulations shall, at a minimum, clarify the cost principles applicable to contractor costs of the following:

"(A) Air shows.