Modifications relating to the code of Federal regulations and other requirements

(a) Increase in the de minimis indirect cost The head of the relevant foreign assistance agency is authorized to— (1) increase the de minimis indirect cost rate provided for in section 200.414 of title 2, Code of Federal Regulations, or any successor regulations, by 5 percentage points for local partners receiving assistance awards from the agency; and (2) establish a de minimis indirect cost rate at the same rate provided for in paragraph (1) for acquisitions awarded under title 48 of the Code of Federal Regulations to local partners, and to increase this threshold further should subsequent Office of Management and Budget regulations recommend doing so. (b) Exemption for local entities The head of the relevant foreign assistance agency is authorized to exempt local partners, as needed, from the reporting requirements of the Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. 6106 note; Public Law 109–282) to allow for a 180-day delay in obtaining a unique entity identifier and registration in the System for Award Management. This delay shall be no later than 30 days prior to the end of the award’s period of performance. (c) Local competition authority Notwithstanding any other provision of law, the head of the relevant foreign assistance agency (or their designees) may award contracts and other acquisition instruments in which competition is limited to local entities if doing so would result in cost savings, strengthen local capacity, or enable the agency to deliver programs or activities more sustainably or quickly than if competition were not so limited. Such authority may not be used to make acquisition awards in excess of $25,000,000 and shall not exceed more than 10 percent of the amounts appropriated to the relevant foreign assistance agency each fiscal year. (d) Use of national or international generally accepted accounting principles The head of the relevant foreign assistance agency, in consultation with the Administrator of the General Services Administration, the Secretary of Defense, and the Administrator of the National Aeronautics and Space Administration, is authorized to allow foreign entities to use national or international generally accepted accounting principles instead of United States Generally Accepted Accounting Principles (GAAP) for contracts or grants awarded under the chapter 7 of title 48, Code of Federal Regulations or chapter 7 of title 2, Code of Federal Regulations.