Department of Defense Efficiency and Economy Act of 1985

[AI summary unavailable — showing source text] Department of Defense Efficiency and Economy Act of 1985 - Title I: Allowable Contract Costs Regulations Relating To Unallowable Indirect Costs - Directs the Secretary of Defense, within 90 days after enactment of this Act, to issue proposed regulations dealing with the unallowability of contractor indirect costs. Requires the Secretary, in determining allowable costs, to consider whether the costs incurred benefit the United States or are necessary for the operation of the business. Specifies certain costs which should be considered unallowable under such new regulations. Authorizes the Secretary to make disallowances and to assess a penalty of three times the disallowed expense whenever there is clear and convincing evidence that such expense is disallowable. Considers as a false claim specifically punishable under specified Federal law an expense submitted by a contractor for reimbursement that was not actually incurred. Requires the Secretary, within 90 days after the enactment of this Act, to report to the Armed Services Committees of the Congress on specific actions taken to address the problems related to spare parts purchasing by the Department of Defense (DOD). Requires th…