{
  "id": "IND-55",
  "category": "Contractor financing-cost recovery",
  "capability": "Allow covered private borrowing costs in production and sustainment contracts",
  "summary": "A discretionary pilot permits reasonable market-rate interest, bond discounts and capital refinancing costs to become allowable and allocable direct or indirect costs for covered inventory-management and capacity-expansion contracts. The financing is supplied by an independent financing entity; this is not a new DoD direct-loan or guarantee program.",
  "legal_basis": [
    {
      "citation": "Pub. L. 119-60, §803",
      "url": "https://www.govinfo.gov/content/pkg/PLAW-119publ60/html/PLAW-119publ60.htm",
      "kind": "statute",
      "note": ""
    },
    {
      "citation": "10 U.S.C. § 3761",
      "url": "https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3761&num=0&edition=prelim",
      "kind": "statute",
      "note": "Pilot Program for Financing for Covered Activities note"
    }
  ],
  "authority_holder": "Secretary of Defense",
  "actor_chain": {
    "planner": [
      "DoD acquisition and program sponsors",
      "Defense Pricing, Contracting, and Acquisition Policy / Price, Cost and Finance directorate (relevant policy office; pilot-specific assignment unverified)"
    ],
    "resource_owner": [
      "Component covered-contract budget and resource sponsor"
    ],
    "approver": [
      "Secretary of Defense for pilot establishment; authorized officials under any resulting implementation"
    ],
    "executor": [
      "Covered-contract contracting and pricing teams under implemented pilot"
    ],
    "partners": [
      "Independent financing entity",
      "Contractor and subcontractors",
      "Material/inventory audit officials",
      "Congressional defense committees"
    ]
  },
  "actor_sources": [
    {
      "title": "DPCAP Price, Cost and Finance directorate responsibilities",
      "url": "https://www.acq.osd.mil/asda/dpc/pcf/index.html"
    }
  ],
  "requirements": [
    "Secretary establishes pilot after briefing congressional defense committees on material/inventory audit compliance",
    "Covered activity manages production or sustainment inventories, or materially expands production/sustainment capacity through capital expenditure",
    "Cost paid to independent Federal/State-organized financing entity engaged in financing business; not under common control with borrower",
    "Financing costs reasonable and consistent with market rates; material/inventory management audit requirements satisfied"
  ],
  "limits": [
    "No authorization of financing-cost treatment for covered contracts entered on or after Dec.31,2029",
    "Government termination liability capped at funding obligated when terminated",
    "Financing entity is not a subcontractor solely by participating",
    "Pilot establishment and current implementation guidance not verified"
  ],
  "funding": [
    "Contract payments subject to availability of appropriations for purpose; financing-cost allowability does not itself provide funds or create government credit subsidy authority."
  ],
  "coordination_path": "Requirement sponsor → named planning office → resource owner and counsel → statutory approving official → authorized executing/contracting office.",
  "availability": "Enacted discretionary pilot authority; establishment, implementing procedures and transaction funding must be verified.",
  "confidence": "High on statutory permission; execution roles are organizational routing, not verified individual delegations.",
  "currentness": "Full enacted FY26 NDAA §803 read; applies only to covered contracts entered before Dec.31,2029. Report due Feb.15,2028 if pilot established.",
  "family": "Industrial capacity, capital and credit",
  "mechanisms": [
    "Contracts & purchases"
  ],
  "goal_ids": [
    "expand-production"
  ],
  "office_links": [
    {
      "office_id": "secretary-deputy-secretary",
      "role": "approver",
      "label": "Secretary of Defense for pilot establishment; authorized officials under any resulting implementation"
    }
  ]
}