; or (2) the delivery of initial or additional items if the item or a prototype thereof is created as the result of work performed under the contract. (b) Limitations (1) Minimal amount A contract line item or contract option described in subsection (a)(2) shall require the delivery of the minimal amount of initial or additional items to allow for the timely competitive solicitation and award of a follow-on development or production contract for those items. (2) Term A contract line item or contract option described in subsection (a) shall be for a term of not more than 2 years. (3) Dollar value of work The dollar value of the work to be performed pursuant to a contract line item or contract option described in subsection (a) may not exceed the amount of expenditure consistent with a major system, as defined in section 2302d of this title. (4) Applicability The authority provided in subsection (a) applies only to the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force. . (2) Clerical amendment The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2302d the following new item: 2302e. Contract authority for advanced development of initial or additional prototype units. . (b) Modification of competitive procedures definition Section 2302(2)(B) of title 10, United States Code, is amended by striking basic research proposals and inserting proposals for basic research, applied research, advanced research, or development projects . (c) Repeal of obsolete authority Section 819 of the National Defense Authorization Act for Fiscal Year 2010 ( Public Law 107–314