mission need. Elements may include hardware, equipment, software, or any
combination thereof, but exclude construction or other improvements to real
property. A system shall be considered a major defense system if--
(i) The DoD is responsible for the system and the total
expenditures (based on fiscal year 1980 constant dollars) for research,
development, test and evaluation for the system, are estimated to exceed
$75 million or the eventual total expenditure for procurement is estimated
to exceed $300 million; or
(ii) The system is designated a major system by the head of
the agency responsible for the system.
(9) "Negotiation" means exchanges of positions between
representatives of the Government and a contractor with the view of
reaching agreement regarding respective liabilities of the parties on a
particular contract or claim. It includes deliberations regarding contract
specifications, terms of delivery, allowability of cost, pricing of change
(10) "Primary Government representative" means, if more than one
government representative is involved in any particular transaction, the
official or officials supervising the Government's effort in the matter.
To -act as a "representative" requires personal and substantial
participation in the transaction, by personal presence, telephone
conversation, or similar involvement with representatives of a contractor.
(11) "Procurement-related function" (or "procurement function")
means any function relating to--
(i) The negotiation, award, administration, or approval of a
(ii) The selection of a contractor;
The approval of a change in a contract;
(iv) The performance of quality assurance, operational and
developmental testing, the approval of payment, or auditing under a
(v) The management of a procurement program.
Prohibition on compensation.
(1) 10 U.S.C. 2397b and 2397c prohibit a major defense contractor
from offering or providing any compensation valued in excess of $250 to a
former DoD official who left DoD service on or after April 16, 1987, and
who, while employed by DoD, performed procurement-related functions in
connection with that defense contractor. This prohibition runs for the two
year period beginning on the date of the official's separation from service
(2) The Contractor, if a major defense contractor, agrees not to