HR-5898 : Still Just a Bill

The Sentinel Program Construction Risk Mitigation Act of 2023, also known as H.R. 5898, allows the Secretary of Defense to use a specific type of contract, known as a "cost-plus incentive-fee" contract, for a limited number of military construction projects related to the Sentinel Intercontinental Ballistic Missile program.

Key points:

• Purpose: To mitigate risks to the schedule and cost of the Sentinel program.
• Contract Type: Authorizes the use of "cost-plus incentive-fee" contracts. These contracts reimburse the contractor for allowable costs, and also provide an additional fee if the contractor meets certain performance goals.
• Scope: Applies to military construction projects associated with Sentinel ICBM launch facilities, control centers, and related infrastructure.
• Limitation: This authority is limited to the first two low-rate initial production lots for a project.
• Waiver: This act provides a waiver to section 3323 of title 10, United States Code, which may have otherwise restricted the use of this type of contract.