((a)) ** .—** The Cost Accounting Standards Board is an independent board in the Office of Management and Budget.

((b))

((1)) ** .—** The Board shall consist of 5 voting members and 2 nonvoting members.

((A)) ** .—** One voting member is the Administrator of Federal Procurement Policy, who serves as Chairman. The other 4 members, all of whom shall have experience in Federal Government contract cost accounting, are as follows:

((i)) 2 representatives of the Federal Government, each of whom has substantial experience in administering and managing covered contracts—

((I)) one of whom is a representative of the Department of Defense appointed by the Secretary of Defense; and

((II)) one of whom is an officer or employee of the General Services Administration appointed by the Administrator of General Services.

((ii)) 2 individuals from the private sector, each of whom is appointed by the Director of the Office of Management and Budget—

((I)) one of whom is a senior employee or retired senior employee of a Government contractor with substantial experience in the private sector involving administration and management of covered contracts; and

((II)) one member of the accounting profession, with substantial experience as an accountant.

((B)) ** .—** There may be up to 2 nonvoting members appointed by the Board from academia, a nonprofit organization, or a private entity with substantial experience in establishing financial accounting and reporting standards in compliance with Generally Accepted Accounting Principles.

((2))

((A)) ** .—** The term of office of each member, other than the Administrator, is 4 years, which may be extended for an additional 4-year period by the individual who appointed such member under paragraph (1). The terms are staggered, with the terms of 2 members expiring in the same year, the term of another member expiring the next year, and the term of the last member expiring the year after that.

((B)) ** .—** A member appointed under paragraph (1)(A)(i) may not continue to serve after ceasing to be an officer or employee of the agency from which that member was appointed.

((3)) ** .—** A vacancy on the Board shall be filled in the same manner in which the original appointment was made. A member appointed to fill a vacancy serves for the remainder of the term for which that member’s predecessor was appointed.

((4)) ** .—** Beginning on , an individual who is a member of an audit entity of an executive agency is not eligible to serve as a member of the Board.

((c)) ** .—** The Board shall—

((1)) ensure that the cost accounting standards used by Federal contractors rely, to the maximum extent practicable, on commercial standards and accounting practices and systems;

((2)) not later than 180 days after the date of enactment of this paragraph, and biennially thereafter, review any cost accounting standards established under and eliminate or conform such standards, where practicable, to Generally Accepted Accounting Principles;

((3)) annually review disputes involving such standards brought to the boards established in or Federal courts, and consider whether greater clarity in such standards could avoid such disputes, and take necessary action to clarify or improve such standards if misinterpretation or lack of clarity in a standard was a primary component of such dispute; and

((4)) ensure that any action taken pursuant to paragraph (3) is not taken solely for the purpose of tailoring such standard to favor a party in the dispute.

((d)) ** .—** The Board shall meet not less than once each quarter and shall publish in the Federal Register notice of each meeting and its agenda before such meeting is held.

((e)) ** .—** The Board shall annually submit a report to the congressional defense committees, the Committee on Oversight and Government Reform of the House of Representatives, and the Committee on Homeland Security and Governmental Affairs of the Senate describing the actions taken during the prior year—

((1)) to conform the cost accounting standards established under with Generally Accepted Accounting Principles;

((2)) to minimize the burden on contractors while protecting the interests of the Federal Government; and

((3)) including a summary of rulemaking activities related to any changes to such standards and any associated timelines for such activities.

((f)) ** .—** The Administrator, after consultation with the Board—

((1)) without regard to the provisions of title 5 governing appointments in the competitive service—

((A)) shall appoint an executive secretary; and

((B)) shall appoint, or detail pursuant to , not less than four additional staff members; and

((2)) may pay those employees without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5 relating to classification and General Schedule pay rates, except that those employees may not receive pay in excess of the maximum rate of basic pay payable for level IV of the Executive Schedule.

((g)) ** .—** The Administrator may appoint, fix the compensation of, and remove additional employees of the Board under the applicable provisions of title 5.

((h)) ** .—** For service on advisory committees and task forces to assist the Board in carrying out its functions and responsibilities—

((1)) the Board, with the consent of the head of a Federal agency, may use, without reimbursement, personnel of that agency; and

((2)) the Administrator, after consultation with the Board, may procure temporary and intermittent services of personnel under .

((i))

((1)) ** .—** Members of the Board who are officers or employees of the Federal Government, and officers and employees of other agencies of the Federal Government who are used under subsection (h)(1), shall not receive additional compensation for services but shall continue to be compensated by the employing department or agency of the officer or employee.

((2)) ** .—** Each member of the Board appointed from the private sector shall receive compensation at a rate not to exceed the daily equivalent of the rate for level IV of the Executive Schedule for each day (including travel time) in which the member is engaged in the actual performance of duties vested in the Board.

((3)) ** .—** An individual hired under subsection (h)(2) may receive compensation at a rate fixed by the Administrator, but not to exceed the daily equivalent of the rate for level V of the Executive Schedule for each day (including travel time) in which the individual is properly engaged in the actual performance of duties under this chapter.

((4)) ** .—** While serving away from home or regular place of business, Board members and other individuals serving on an intermittent basis under this chapter shall be allowed travel expenses in accordance with .

((j)) ** .—** In this section, the term “covered contract” means a contract that is subject to the cost accounting standards issued pursuant to .