An amendment to Title VIII (Procurement Policy Reform and other Procurement Matters), adding three new sections: 801) Allowable Costs, 802) Subpoenas of Defense Contractor Records, and 803) Limitation on Assignment of Principle Contracting Officers. Under sec. 801 penalties are set for contractors submitting indirect costs that are not permitted by law. The amendment lists such unpermitted costs. The Secretary of Defense is required to establish regulations for determining allowable indirect costs. Waiver provisions are included. Sec. 802 permits subpoena of records and other documents from defense contractors. Sec. 803 limits to five years the tour of duty of a Principle Contracting Officer.