[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2238 Reported in House (RH)]
Union Calendar No. 303
103d CONGRESS
2d Session
H. R. 2238
[Report No. 103-545, Parts I and II]
To amend laws relating to Federal procurement, to authorize functions
and activities under the Federal Property and Administrative Services
Act of 1949, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 24, 1993
Mr. Conyers (for himself and Mr. Dellums) introduced the following
bill; which was referred jointly to the Committees on Government
Operations and Armed Services
June 13, 1994
Reported from the Committee on Government Operations with an amendment
[Strike out all after the enacting clause and insert the part printed
in boldface roman]
June 17, 1994
Additional sponsors: Mr. Clinger, Mr. Kleczka, and Mrs. Maloney
June 17, 1994
Reported from the Committee on Armed Services with amendments,
committed to the Committee of the Whole House on the State of the
Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on May 24,
1993]
_______________________________________________________________________
A BILL
To amend laws relating to Federal procurement, to authorize functions
and activities under the Federal Property and Administrative Services
Act of 1949, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Acquisition Improvement Act
of 1993''.
TITLE I--ENHANCEMENT OF COMPETITION IN CONTRACTING
Subtitle A--Acquisition of Commercial Items
SEC. 111. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.
Section 16 of the Office of Federal Procurement Policy Act (41
U.S.C. 414) is amended by redesignating paragraphs (2), (3), and (4) in
order as paragraphs (3), (4), and (5), respectively, and by inserting
after paragraph (1) the following new paragraph:
``(2) implement a preference for the acquisition of
commercial items by--
``(A) whenever practicable, stating specifications
in solicitation for bids and proposals in terms such
that bidders and offerors are enabled and encouraged to
offer to supply commercial items in response to agency
solicitations;
``(B) reducing impediments to the acquisition of
commercial items in agency procurement policies,
practices, and procedures not required by law; and
``(C) requiring training of appropriate personnel
in the acquisition of commercial items;''.
SEC. 112. ACQUISITION OF COMMERCIAL ITEMS.
Section 28 of the Office of Federal Procurement Policy Act (41
U.S.C. 424) is amended to read as follows:
``SEC. 28. ACQUISITION OF COMMERCIAL ITEMS.
``(a) Market Research.--Before soliciting bids or proposals for a
contract for property or services, an executive agency shall conduct
market research, appropriate to the circumstances, to determine whether
the needs of the agency can be met by the acquisition of commercial
items.
``(b) Advocate for Acquisition of Commercial Items.--
``(1) Establishment.--There is established in the Office of
Federal Procurement Policy the position of Advocate for the
Acquisition of Commercial Items (hereinafter in this subsection
referred to as the `Advocate').
``(2) Functions.--The Advocate shall--
``(A) monitor compliance by executive agencies with
the preference required under section 16(2) for the
acquisition of commercial items;
``(B) make recommendations and proposals to the
Administrator regarding the reform of procurement
statutes and regulations to implement that preference;
and
``(C) report to the Administrator on the
prospective effect of proposed statutes and regulations
on the acquisition of commercial items.''.
SEC. 113. REGULATIONS AND SIMPLIFIED FORM CONTRACTS.
(a) Revision of FAR.--Unless otherwise specifically provided in
this title, not later than 180 days after the date of the enactment of
this title, the Federal Acquisition Regulation issued under section
25(c) of the Office of Federal Procurement Policy Act (41 U.S.C.
421(c)) shall be revised to implement the amendments made by this
subtitle.
(b) Simplified Uniform Contract.--(1)(A) The revision of the
Federal Acquisition Regulation under subsection (a) shall include
issuance of one or more simplified uniform contracts for the
acquisition of commercial items by Federal agencies and shall require
that such simplified uniform contract or contracts be used for the
acquisition of commercial items to the maximum extent practicable. The
uniform contract or contracts shall include only--
(i) those contract clauses that are required to implement
provisions of law applicable to such an acquisition;
(ii) those contract clauses that are essential for the
protection of the Federal Government's interest in such an
acquisition; and
(iii) those contract clauses that are determined to be
consistent with standard commercial practice and appropriate
for inclusion in such contracts.
(B) In addition to the clauses described under subparagraph (A),
contracts for the acquisition of commercial items may include such
clauses as are essential for the protection of the Federal Government's
interest in--
(i) a particular contract, as determined in writing by the
contracting officer for such contract; or
(ii) a class of contracts, as determined by the agency
head, in consultation with the Administrator for Federal
Procurement Policy.
(C) Contracts for the acquisition of commercial items may not
include any clause other than those clauses authorized under
subparagraph (A) or (B).
(2)(A) Except as provided in subparagraph (B), a prime contractor
under a Federal agency contract for the acquisition of commercial items
may only be required to include in subcontracts under such contract--
(i) those contract clauses that are required to implement
provisions of law applicable to such subcontracts; and
(ii) those contract clauses that are essential for the
protection of the Federal Government's interest in such
subcontracts.
(B) In addition to the clauses described under subparagraph (A), a
contractor under a Federal agency contract for the acquisition of
commercial items may be required to include in a subcontract under such
contract such clauses as are essential for the protection of the
Federal Government's interest in--
(i) a particular subcontract, as determined in writing by
the contracting officer for such contract; or
(ii) a class of subcontracts, as determined by the agency
head, in consultation with the Administrator for Federal
Procurement Policy.
(C) A Federal agency may not require a contractor for the
acquisition of commercial items to include in a subcontract for that
acquisition any clause other than those clauses authorized under
subparagraph (A) or (B).
(3) Notwithstanding paragraphs (1) and (2) of this subsection, the
Department of Defense may use uniform contract clauses developed under
paragraphs (2) and (3) of section 824(b) of the National Defense
Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 2325 note;
P.L. 101-189) until September 30, 1995.
(c) Warranties.--The Federal Acquisition Regulation shall require
that, to the maximum extent practicable, Federal agencies take
advantage of warranties offered by commercial contractors and use such
warranties for the repair and replacement of commercial items.
(d) Market Acceptance.--The Federal Acquisition Regulation shall
direct agencies to require, where appropriate and in accordance with
criteria prescribed in the regulations, offerors to demonstrate in
their offers that products being offered have--
(1)(A) achieved a level of commercial market acceptance
necessary to indicate that the products are suitable for the
agency's use; or
(B) been satisfactorily supplied under current or recent
contracts for the same or similar requirements; and
(2) otherwise meet the product description, specifications,
or other criteria prescribed by the public notice and
solicitation.
(e) Past Performance.--The Federal Acquisition Regulation shall
provide guidance to Federal agencies on the use of past performance of
products and sources as a factor in award decisions.
Subtitle B--Miscellaneous
SEC. 121. TRUTH IN NEGOTIATIONS ACT.
(a) Amendments.--Section 304(d)(4) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 254(d)(4)) is amended to
read as follows:
``(4) Authority To Require Cost or Pricing Data.--When cost or
pricing data need not be required to be submitted pursuant to paragraph
(5), such data shall not be required to be submitted unless the head of
the agency determines that such data are necessary for the evaluation
by the agency of the reasonableness of the price of the contract or
subcontract. In any case in which the head of the agency requires such
data to be submitted under this paragraph, the head of the agency shall
document in writing the reasons for such requirement.''.
(b) Requirement for Revised Regulations.--Not later than 180 days
after the date of enactment of this Act, the Federal Acquisition
Regulation issued under section 25(c) of the Office of Federal
Procurement Policy Act (41 U.S.C. 421(c)) shall be revised to implement
section 304(d)(4) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 254(d)) and section 2306a(b) of title 10, United
States Code, as amended by subsection (a) and section 302.
(c) Provisions To Be Included.--(1) In the case of contracts other
than cost-reimbursement research and development contracts, the revised
regulations promulgated under subsection (b) shall provide that cost or
pricing data may not be requested from a contractor when it is likely
that circumstances will exist in which an exception to the requirement
to provide such data is authorized by section 304(d)(5) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 254(d)) or
section 2306a(b) of title 10, United States Code, unless the head of
the agency determines in writing that such data are necessary for the
evaluation by the agency of the reasonableness of the price of the
contract or subcontract.
(2) The regulations also shall provide clear standards for
determining whether the exceptions authorized by such sections apply.
In the case of the exception provided under section 304(d)(5)(A)(i) of
such Act and section 2306a(b)(1)(A) of such title (relating to adequate
price competition), the regulations shall specify the criteria that
will be used to determine whether adequate price competition exists. In
the case of the exception provided under section 304(d)(5)(A)(ii) of
such Act and section 2306a(b)(1)(B) of such title (relating to
established catalog or market prices of commercial items sold in
substantial quantities to the general public), the regulations shall
preclude the consideration of sales to the government, including the
percentage of an item's overall sales that are made to the Government,
when determining whether the item has been sold in substantial
quantities to the public.
(3) The regulations also shall establish reasonable limitations on
requests for sales data relating to commercial items.
SEC. 122. DEFINITIONS.
(a) OFPP Act.--Section 4 of the Office of Federal Procurement
Policy Act (41 U.S.C. 403) is amended by--
(1) striking ``and'' at the end of paragraph (10);
(2) striking the period at the end of paragraph (11) and
inserting ``; and''; and
(3) adding at the end the following new paragraph:
``(12) the term `commercial items' means items regularly
used in the course of normal business operations for other than
Government purposes, that--
``(A) have been sold, leased, or licensed to the
general public;
``(B) have been offered for sale, lease, or license
to the general public;
``(C) are not yet available in the commercial
marketplace, but will be available in time to satisfy
the delivery requirements under a Government
solicitation; or
``(D) are items that, but for minor modifications
made to meet Government requirements, would satisfy the
criteria set forth in subparagraph (A), (B), or (C).''.
(b) Federal Property and Administrative Services Act of 1949.--
Section 309(c) of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 259(c)) is amended by inserting ```commercial
items','' immediately after ```item of supply',''.
(c) Commercial Item Defined.--In this title, the term ``commercial
items'' has the meaning given that term in section 4 of the Office of
Federal Procurement Policy Act (41 U.S.C. 403), as amended by
subsection (a).
SEC. 123. EFFECTIVE DATE.
Unless otherwise specifically provided in this title, the
amendments made by this title shall be effective 180 days after the
date of the enactment of this title.
SEC. 124. PROVISIONS NOT AFFECTED.
Nothing in this title shall be construed as amending, modifying, or
superseding, or is intended to impair or restrict authorities or
responsibilities under--
(1) section 111 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759), commonly referred to as
the ``Brooks Automatic Data Processing Act'';
(2) title IX of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 541 et seq.), commonly referred
to as the ``Brooks Architect-Engineers Act'';
(3) the Small Business Act (15 U.S.C. 631 et seq.),
including section 8(a) of that Act (15 U.S.C. 637(a)); or
(4) the Act of June 25, 1938 (41 U.S.C. 46-48c), commonly
referred to as the ``Javits-Wagner-O'Day Act''.
TITLE II--AMENDMENTS TO FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
ACT OF 1949
SEC. 201. AWARD OF MULTIPLE CONTRACTS.
Section 303B of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253b) is amended by adding at the end the
following:
``(g) Award of Multiple Contracts.--In procuring any supply or
service using competitive procedures, an executive agency may award
more than one contract for the same supply or service in any case in
which the head of the agency determines that it is in the best
interests of the Government to award those contracts for the purpose of
maintaining a continuous source for the supply or service.''.
SEC. 202. SOLICITATION EVALUATION AND AWARD.
(a) Solicitation Requirements.--Section 303A of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253a) is
amended--
(1) in subsection (b)(1)(A)--
(A) by inserting ``and significant subfactors''
after ``all significant factors''; and
(B) by striking ``(including price)'' and inserting
``(including cost or price, cost- or price-related
factors, and noncost- or nonprice-related factors)'';
(2) in subsection (b)(1)(B) by inserting ``and subfactors''
after ``factors'';
(3) in subsection (b)(2)(B) by amending clause (i) to read
as follows:
``(i) a statement that the proposals are intended
to be evaluated with, and award made after, discussions
with the offerors, or that the proposals are intended
to be evaluated, and award made, without discussions
with the offerors (other than discussions conducted for
the purpose of minor clarification), unless discussions
are determined to be necessary; and''; and
(4) by adding at the end the following new subsection:
``(c) Establishing Importance of Factors.--(1) In prescribing the
evaluation factors to be included in each solicitation for competitive
proposals, the head of an agency--
``(A) shall clearly establish the relative importance
assigned to the evaluation factors and subfactors, including
the quality of the product or services to be provided
(including technical capability, management capability, and
prior experience of the offeror);
``(B) shall include cost or price to the Government as an
evaluation factor that must be considered in the evaluation of
proposals; and
``(C) shall, at a minimum, disclose to offerors whether all
evaluation factors other than price or cost, when combined,
are--
``(i) significantly more important than price or
cost,
``(ii) approximately equal in importance to price
or cost, or
``(iii) significantly less important than price or
cost.
``(2) Nothing in this subsection prohibits an agency from--
``(A) providing additional information in a solicitation,
including numeric weights for all evaluation factors; or
``(B) stating in a solicitation that award will be made to
the offeror that meets the solicitation's mandatory
requirements at the lowest price or cost.''.
(b) Evaluation and Award.--Section 303B of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended--
(1) in subsection (a) by inserting ``and award a contract''
after ``competitive proposals'';
(2) in subsection (c) in the second sentence by inserting
``in accordance with subsection (a)'' after ``shall evaluate
the bids'';
(3) in subsection (d) by amending paragraph (1) to read as
follows:
``(1) The executive agency shall evaluate competitive proposals in
accordance with subsection (a) and may award a contract--
``(A) after discussions with the offerors, if written or
oral discussions have been conducted with all responsible
offerors who submit proposals within the competitive range; or
``(B) without discussions with the offerors (other than
discussions conducted for the purpose of minor clarification),
if the solicitation included a statement that proposals are
intended to be evaluated, and award made, without discussions,
unless discussions are determined to be necessary.''; and
(4) in subsection (d) by striking paragraphs (2) and (3)
and by redesignating paragraph (4) as paragraph (2).
(c) Application.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to--
(A) solicitations for sealed bids or competitive
proposals issued after the end of the 180-day period
beginning on the date of the enactment of this Act; and
(B) contracts awarded pursuant to those
solicitations.
(2) Earlier application.--The head of an agency may apply
the amendments made by this section to solicitations issued
before the end of the period referred to in paragraph (1). The
head of the agency shall publish in the Federal Register notice
of any such earlier date of application before the beginning of
the 10-day period ending on that date.
SEC. 203. CERTIFIED COST OR PRICING DATA THRESHOLD.
(a) Certifying Data.--
(1) Affected contracts.--Section 304(d) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
254(d)) is amended--
(A) by striking out ``$100,000'' each place it
appears and inserting in lieu thereof ``the cost or
pricing data threshold''; and
(B) by adding at the end the following new
paragraph:
``(6) For the purposes of this subsection, the term `the cost or
pricing data threshold' means $500,000, or, after December 31, 1995,
$100,000.''.
(2) Application.--The amendments made by this subsection
shall apply to--
(A) prime contracts, or subcontracts (without
regard to the date on which the associated prime
contract was awarded), entered into after the date on
which the Federal Acquisition Regulation is promulgated
pursuant to section 204; and
(B) changes or modifications to prime contracts or
subcontracts when those changes or modifications are
entered into after the date on which a final revision
of the Federal Acquisition Regulation is issued
pursuant to section 204.
(3) Modification.--Upon the request of a contractor, the
head of an agency may modify a contract to reflect the dollar
thresholds set forth in the revision to the Federal Acquisition
Regulation issued pursuant to section 204. Any such
modification shall be made without requiring consideration.
(b) Regulations for Below-Threshold Procurements.--
(1) Type of procurements.--The Administrator of General
Services, in consultation with the Administrator for Federal
Procurement Policy, shall prescribe regulations identifying the
type of procurements for which contracting officers should
consider requiring the submission of certified cost or pricing
data under section 304(d) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C 254).
(2) Types of information.--The Administrator of General
Services, in consultation with the Administrator for Federal
Procurement Policy, shall prescribe regulations concerning the
types of information that offerors may be required to submit
for a contracting officer to consider in determining whether
the price of a procurement to the Government is fair and
reasonable when certified cost or pricing data are not required
to be submitted under section 304(d) of such Act because the
price of the procurement to the United States is not expected
to exceed $500,000. Such information, at a minimum, shall
include appropriate information on the prices at which such
offeror has previously sold the same or similar products.
(3) Deadline.--The regulations required under this
subsection shall be prescribed no later than 6 months after the
date of the enactment of this Act.
(c) Repeal of Commercial Pricing Requirements.--
(1) Repeal.--Section 303E of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253e) is
repealed.
(2) Clerical amendment.--The first section of the Federal
Property and Administrative Services Act of 1949 is amended in
the table of contents by striking the item relating to section
303E.
(d) Review of Amendments.--
(1) In general.--After the amendments made by subsections
(a) and (c) have been in effect for 1 year, the Comptroller
General shall conduct a review of the effects of the
amendments. The Comptroller General shall coordinate that
review, insofar as possible, with the review conducted by the
Inspector General of the Department of Defense pursuant to
section 803(b) of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101-510).
(2) Factors considered.--The review conducted under
paragraph (1) shall address whether the amendments made by
subsections (a) and (c) have improved the acquisition process
in terms of reduced paperwork, financial or other savings to
the Government, an increase in the number of contractors
participating in the contracting process, and the adequacy of
information available to contracting officers in cases in which
certified cost or pricing data are not required.
(3) Report.--Not later than the date on which the President
submits the budget for fiscal year 1996 to the Congress
pursuant to section 1105 of title 31, United States Code, the
Comptroller General shall submit to the Congress a report on
the review conducted under paragraph (1). The report shall
include the comments of the Administrator for Federal
Procurement Policy and the Administrator of General Services.
SEC. 204. REVISION OF FEDERAL ACQUISITION REGULATION; EFFECTIVE DATE.
(a) Revision of FAR.--Unless otherwise specifically provided in
this title, not later than 180 days after the date of the enactment of
this Act, the Federal Acquisition Regulation issued under section 25(c)
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c))
shall be revised to reflect the amendments made by sections 201, 202,
203(a) and (c), and 301.
(b) Effective Date.--Unless otherwise specifically provided in this
title, the amendments made by this title and section 301 shall be
effective 180 days after the date of the enactment of this Act.
(c) Standards and Requirements for Cost and Price as Evaluation
Factors.--
(1) In general.--The Federal Acquisition Regulation, as
revised pursuant to subsection (a), shall establish standards
and requirements for the consideration of cost and price to the
Government as evaluation factors under the amendments made by
sections 202(a)(4) and 301.
(2) Standards and requirements.--Standards and requirements
established under paragraph (1) shall be adequate to ensure
that, to the maximum extent practicable consistent with the
needs of the Federal Government in conducting procurements--
(A) cost or price is an evaluation factor of
sufficient weight to affect each source selection
decision; and
(B) competition among competing offerors is
affected by cost or price.
TITLE III--AMENDMENTS RELATING TO TITLE 10, UNITED STATES CODE
SEC. 301. SOURCE SELECTION FACTORS.
Paragraph (3) of section 2305(a) of title 10, United States Code,
is amended to read as follows:
``(3)(A) In prescribing the evaluation factors to be included in
each solicitation for competitive proposals, the head of an agency--
``(i) shall clearly establish the relative importance
assigned to the evaluation factors and subfactors, including
the quality of the product or services to be provided
(including technical capability, management capability, and
prior experience of the offeror);
``(ii) shall include cost or price to the Government as an
evaluation factor that must be considered in the evaluation of
proposals; and
``(iii) shall, at a minimum, disclose to offerors whether
all evaluation factors other than price or cost, when combined,
are--
``(I) significantly more important than price or
cost,
``(II) approximately equal in importance to price
or cost, or
``(III) significantly less important than price or
cost.
``(B) Nothing in this paragraph prohibits an agency from--
``(i) providing additional information in a solicitation,
including numeric weights for all evaluation factors; or
``(ii) stating in a solicitation that award will be made to
the offeror that meets the solicitation's mandatory
requirements at the lowest price or cost.''.
SEC. 302. TRUTH IN NEGOTIATIONS.
Section 2306a(c) of title 10, United States Code, is amended to
read as follows:
``(c) Authority to Require Cost or Pricing Data.--When cost or
pricing data need not be required to be submitted pursuant to
subsection (b), such data shall not be required to be submitted unless
the head of the agency determines that such data are necessary for the
evaluation by the agency of the reasonableness of the price of the
contract or subcontract. In any case in which the head of the agency
requires such data to be submitted under this subsection, the head of
the agency shall document in writing the reasons for such
requirement.''.
TITLE IV--BROOKS ACT AMENDMENTS
SEC. 401. SHORT TITLES OF CERTAIN PROVISIONS OF FEDERAL PROPERTY AND
ADMINISTRATIVE SERVICES ACT OF 1949.
(a) Automatic Data Processing Equipment Provisions.--Section 111 of
the Federal Property and Administrative Services Act of 1949 (40 U.S.C.
759) is amended by adding at the end the following new subsection:
``(i) This section may be cited as the `Brooks Automatic Data
Processing Act'.''.
(b) Architectural and Engineering Services Provisions.--Title IX of
the Federal Property and Administrative Services Act of 1949 (40 U.S.C.
541-544) is amended by adding at the end the following new section:
``SEC. 905. SHORT TITLE.
``This title may be cited as the `Brooks Architect-Engineers
Act'.''.
SEC. 402. DISMISSAL; AWARD OF COSTS.
Section 111(f)(4) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(f)(4)) is amended by striking
subparagraph (C) and inserting the following:
``(C) The board may dismiss a protest that the board determines--
``(i) is frivolous,
``(ii) has been brought in bad faith, or
``(iii) on its face does not state a valid basis for
protest.
``(D) If a party violates or fails to comply in good faith with, or
causes a violation of or failure to comply in good faith with, an order
or decision of the board, the board may require that party to pay to
any other party the amount of any reasonable costs, including
attorney's fees, incurred by the other party in seeking compliance with
such order or decision.''.
SEC. 403. OVERSIGHT OF ACQUISITION OF AUTOMATIC DATA PROCESSING
EQUIPMENT BY FEDERAL AGENCIES.
Section 111 of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 759), as amended by this Act, is further amended by
inserting after subsection (g) the following new subsection:
``(h)(1) The Administrator shall collect and compile data from
Federal agencies regarding the procurement of automatic data processing
equipment under this section. That data shall include, at a minimum,
with regard to those procurements specified by the Administrator in
regulation--
``(A) the procuring agency,
``(B) the contractor,
``(C) the automatic data processing equipment and services
procured,
``(D) the manufacturer of the equipment procured,
``(E) the amount of the contract,
``(F) the type of contract used,
``(G) the extent of competition for award,
``(H) compatibility restrictions, and
``(I) significant modifications of the contract.
``(2) The head of each Federal agency shall report to the
Administrator in accordance with regulations issued by the
Administrator all information required to be compiled by the
Administrator under paragraph (1).
``(3) The Administrator--
``(A) shall carry out a systematic review and conduct
periodic audits of information received under this subsection;
``(B) shall use such information as appropriate to
determine the compliance of Federal agencies with the
requirements of this section; and
``(C) may suspend the delegation to an agency of authority
to lease and purchase automatic data processing equipment upon
any substantial failure by the head of the agency to report to
the Administrator in accordance with this subsection.
``(4) The Administrator shall, upon receipt of information that a
Federal agency has failed to comply with the terms of any delegation of
authority to lease or purchase automatic data processing equipment or
has failed to comply with any applicable law or regulation, take
appropriate corrective action.
``(5) Data collected pursuant to this section shall be drawn from
existing Federal agency information resources, and no new or additional
information reporting requirements may be imposed on offerors or
contractors for that purpose.''.
SEC. 404. EFFECTIVE DATE.
The amendments made by this title shall take effect on the date
which is 180 days after the date of the enactment of this title.
TITLE V--MISCELLANEOUS PROVISIONS
SEC. 501. PROCUREMENT PROTEST SYSTEM IMPROVEMENTS.
(a) GAO Recommendations on Protests.--Section 3554 of title 31,
United States Code, is amended--
(1) in subsection (b) by adding at the end the following
new paragraph:
``(3) The head of the procuring activity responsible for the
solicitation, proposed award, or award of a contract shall report to
the Comptroller General if the Federal agency has not fully implemented
recommendations of the Comptroller General under this subsection with
respect to that contract within 60 days after receiving the
recommendations, by not later than the end of that 60-day period.'';
(2) in subsection (c)(1) by striking ``declare an
appropriate interested party to be entitled to'' and inserting
``recommend that the Federal agency conducting the procurement
pay to an appropriate interested party'';
(3) by amending subsection (c)(2) to read as follows:
``(2) If the Comptroller General recommends under paragraph (1)
that a Federal agency pay an amount of costs to an interested party,
the Federal agency shall--
``(A) pay the amount promptly out of amounts appropriated
by section 1304 of this title for the payment of judgments, and
reimburse that appropriation account out of available funds or
by obtaining additional appropriations for that purpose, or
``(B) report to the Comptroller General promptly why the
recommendation will not be followed by the agency.''.
(4) by adding at the end of subsection (c) the following
new paragraph:
``(3) An interested party to which the Comptroller General has
recommended that costs be paid under paragraph (1) and the Federal
agency recommended to pay those costs shall attempt to reach agreement
on the amount of the costs to be paid, but if they are unable to agree,
a party may request that the Comptroller General recommend the amount
of the costs to be paid.''; and
(5) by amending subsection (e) to read as follows:
``(e)(1) The Comptroller General shall report promptly to the
Committee on Government Operations and the Committee on Appropriations
of the House of Representatives and to the Committee on Governmental
Affairs and the Committee on Appropriations of the Senate in any case
in which a Federal agency fails to implement fully a recommendation of
the Comptroller General under subsection (b) or (c). The report shall
include--
``(A) a comprehensive review of the pertinent procurement,
including the circumstances of the failure of the Federal
agency to implement a recommendation of the Comptroller
General, and
``(B) a recommendation regarding whether, in order to
correct inequity or to preserve the integrity of the
procurement process, the Congress should consider--
``(i) private relief legislation;
``(ii) legislative rescission or cancellation of
funds;
``(iii) further investigation by the Congress; or
``(iv) other action.
``(2) Not later than January 31 of each year, the Comptroller
General shall transmit to the Congress a summary report describing each
instance in which a Federal agency did not fully implement a
recommendation of the Comptroller General under subsection (b) or (c)
during the preceding year.''.
(b) Ratification of Prior Awards.--Amounts to which the Comptroller
General declared an interested party to be entitled under section 3554
of title 31, United States Code, as in effect immediately before the
enactment of this Act, shall, if not paid or otherwise satisfied by the
Federal agency concerned before the date of the enactment of this Act,
be paid promptly from the appropriation made by section 1304 of title
31, United States Code, for the payment of judgments, and the Federal
agency shall reimburse that appropriation account out of available
funds or by obtaining additional appropriations for that purpose.
(c) Effective Date.--The amendments made by subsection (a) shall
take effect at the end of the 45-day period beginning on the date of
the enactment of this Act.
(d) Restriction on Access to Certain Information.--Section 3553(f)
of title 31, United States Code, is amended--
(1) by inserting ``(1)'' after ``(f)''; and
(2) by adding at the end the following:
``(2)(A) The Comptroller General may issue protective orders which
establish terms, conditions, and restrictions for the provision of any
document to a person under paragraph (1), that prohibit or restrict the
disclosure by the person of information described in subparagraph (C)
that is contained in such a document.
``(B) The penalties specified under section 27(i) of the Office of
Federal Procurement Policy Act shall apply to the disclosure of
information described in subparagraph (C) in violation of a term,
condition, or restriction in a protective order under this paragraph by
a person that is subject to the protective order.
``(C) Information referred to in subparagraphs (A) and (B) is
procurement sensitive information, trade secrets, or other proprietary
or confidential research, development, or commercial information.
``(D) A protective order under this paragraph shall not be
considered to authorize the withholding of any document or information
from the Congress or an executive agency.''.
SEC. 502. POST-AWARD DEBRIEFINGS.
(a) Amendment to Office of Federal Procurement Policy Act.--The
Office of Federal Procurement Policy Act (41 U.S.C. et seq.) is amended
by adding at the end the following new section:
``SEC. 29. POST-AWARD DEBRIEFINGS.
``(a) Debriefing Guidelines.--The Federal Acquisition Regulation
shall be revised to include guidelines for the debriefing of
unsuccessful offerors for any contract for an amount in excess of the
small purchase threshold which was awarded on a basis other than price
alone. Such guidelines shall require that such a debriefing--
``(1) shall occur if a written request by an unsuccessful
offeror for a contract is submitted within 5 days after the
date of the award of the contract;
``(2) shall be completed within 5 days after the date of
the submission of such a request; and
``(3) to the maximum extent practicable, shall include at
least the following:
``(A) A detailed review of the offeror's proposal
in relation to the evaluation factors and subfactors
specified in the solicitation for the contract,
including identification of any weaknesses and
strengths of the proposal, results of any past
performance analyses, and cost realism assessment.
``(B) A description of the rationale for the award
of the contract.
``(C) The overall evaluated cost and combined
technical and cost scores of the awardee and the
debriefed offeror, and the technical point scores of
the awardee and the debriefed offeror.
``(D) The overall ranking of all offerors.
``(b) Information Not Provided.--A debriefing under subsection (a)
shall not make point-by-point comparisons with other offerors'
proposals and shall not disclose any information that is not subject to
disclosure under section 552 of title 5, United States Code, including
information relating to--
``(1) trade secrets;
``(2) privileged or confidential manufacturing processes
and techniques; and
``(3) commercial and financial information that is
privileged or confidential, including cost breakdowns, profit,
indirect cost rates, and similar information.
``(c) Notification of Disclosure.--Each solicitation for contracts
subject to subsection (a) shall notify participating offerors that the
categories of information described in subsection (a)(3) may be
disclosed by the Government in post-award debriefings.''.
(b) Period for Filing Protest.--
(1) In general.--Section 3553(d) of title 31, United States
Code, is amended by adding at the end the following:
``(3)(A) In the case of protest submitted by a person provided a
debriefing with respect to a contract, paragraph (1) shall be applied
by substituting for `but within 10 days of the date of the contract
award' the following: `but before the later of the date that is 10 days
after the date of the contract award or the date that is 3 working days
after the date of completion of a debriefing regarding the contract'.
``(B) In this paragraph the term `debriefing' means a debriefing
under the guidelines required under section 29 of the Office of Federal
Procurement Policy Act.''.
(2) Brooks automatic data processing act protests.--Section
111(f)(3) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 749(f)(3)) is amended by adding at the
end the following:
``(C)(i) In the case of protest filed by a person provided a
debriefing with respect to a contract, subparagraph (A) shall be
applied by substituting for `but within 10 days after the contract
award' the following: `but before the later of the date that is 10 days
after the date of the contract award or the date that is 3 working days
after the date of completion of a debriefing regarding the contract'.
``(ii) In this subparagraph the term `debriefing' means a
debriefing under the guidelines required under section 29 of the Office
of Federal Procurement Policy Act.''.
(c) Issuance of Revision.--The Federal Acquisition Regulatory
Council shall issue a final revision of the Federal Acquisition
Regulation implementing section 29 of the Office of Federal Procurement
Policy Act, as added by subsection (a), not later than 180 days after
the date of the enactment of this Act.
(d) Application.--Section 29 of the Office of Federal Procurement
Policy Act, as added by subsection (a), shall apply with respect to
solicitations for contracts issued after the expiration of the 180-day
period beginning on the date of the enactment of this Act.
SEC. 503. USE OF SMALL PURCHASE PROCEDURES FOR PROCUREMENTS CONDUCTED
THROUGH FEDERAL ACQUISITION COMPUTER NETWORK SYSTEMS;
IMPLEMENTATION OF SYSTEMS.
(a) Increase in Small Purchase Threshold.--
(1) In general.--Section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403), as amended by section
122(a), is further amended--
(A) by striking paragraph (11) and inserting the
following:
``(11) the term `small purchase threshold' means--
``(A) $25,000, except as provided in subparagraphs
(B) and (C);
``(B) $50,000, in the case of a procurement--
``(i) that is conducted by a procuring
activity that has implemented FACNET system
architectural capabilities in accordance with
the requirements under section 30(f)(1)(A) and
(B)(i); and
``(ii) in which notices of solicitation for
all contracting opportunities are issued
through a FACNET system; or
``(C) $100,000, in the case of a procurement--
``(i) that is conducted by a procuring
activity that has implemented FACNET system
architectural capabilities in accordance with
the requirements under section 30(f)(1)(A) and
(B)(i), (ii), (iii), and (iv); and
``(ii) in which--
``(I) notices of solicitation for
all contracting opportunities are
issued through a FACNET system,
``(II) responses to solicitations
and requests for information may be
submitted to the procuring activity
through such system,
``(III) information pursuant to
those requests is available through
such system,
``(IV) orders are made through such
system, and
``(V) public notice of awards is
provided through such system;
except that the dollar amount in each of subparagraphs (A),
(B), and (C) shall be adjusted on October 1 of each year
divisible by 5 to the equivalent amount in constant fiscal year
1993 dollars (rounded to the nearest $1,000);''
(B) by striking the period at the end of paragraph
(12) and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(13) the term `FACNET system' means such a system
developed in accordance with the FACNET system architecture
established by the Administrator under section 30.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on, and apply to solicitations made and
orders placed on or after, the expiration of the 60-day period
beginning on the date of issuance in final form of revisions to
the Federal Acquisition Regulation under subsection (b).
(3) Interim rule.--Notwithstanding paragraphs (1) and (2),
during the 5-year period beginning on the date of the issuance
in final form of revisions to the Federal Acquisition
Regulation under subsection (b), procuring activities shall
continue to report, pursuant to section 19(d) of the Office of
Federal Procurement Policy Act (41 U.S.C. 417(d)), procurement
awards with a dollar value of at least $25,000, but less than
$100,000, in conformity with the procedures for the reporting
of a contract award in excess of $25,000 in effect on May 24,
1993.
(b) Improved Small Purchase Procedures.--
(1) Revision of far.--The Federal Acquisition Regulation
shall be revised to ensure that--
(A) procuring activities of executive agencies
comply with the requirements of section 8(a) of the
Small Business Act (15 U.S.C. 637(a)) and section 2323
of title 10, United States Code, in awarding any
contract with a price exceeding $25,000;
(B) the authority under part 13.106(a)(1) of the
Federal Acquisition Regulation (48 C.F.R.
13.106(a)(1)), as in effect on May 19, 1993, to make
purchases without securing competitive quotations does
not apply to any purchases with a price exceeding
$2,500; and
(C) procuring activities of executive agencies
comply with the requirements of section 15(j) of the
Small Business Act (15 U.S.C. 644), relating to the
small business reserve, in awarding any contract with a
price below the small purchase threshold.
(2) Notice required regarding oral solicitations.--Section
18(a)(1)(B) of the Office of Federal Procurement Policy Act (41
U.S.C. 416(a)(1)(B)) is amended in the matter preceding clause
(i)--
(A) by inserting ``(including orally or by any
other means)'' after ``intending to solicit''; and
(B) by inserting after ``ten days'' the following:
``before contract award (except for any procurement in
which public notice of contract opportunities for the
acquisition of property or services by a procuring
activity of an executive agency is performed through a
FACNET system)''.
(3) Participation by all responsible small business
concerns.--Section 18 of the Office of Federal Procurement
Policy Act (41 U.S.C. 416) is amended by adding at the end the
following:
``(e) An executive agency intending to solicit offers for a
contract for which a notice of solicitation is required to be posted
under subsection (a)(1)(B) shall ensure that all small business
concerns are permitted to respond to solicitations for the contract
within the time specified in the solicitations.''.
(c) Performance Test and Report.--
(1) Performance test.--The Comptroller General of the
United States shall monitor and collect data on the results of
the amendments made by subsection (a)(1), to ascertain the
effects of the amendments on the participation of small
business concerns (including small business concerns owned and
controlled by socially and economically disadvantaged
individuals) in procurement awards of less than $100,000 and
the benefits and detriments, if any, to the buying activities
of the various Executive agencies.
(2) Data to be collected.--Data collected under paragraph
(1) shall include data regarding whether the amendments made by
subsection (a)(1) have improved the acquisition process in
terms of reduced paperwork, financial or other savings to the
Government, and any increase in the number of contractors
participating in the contracting process.
(3) Period.--Data shall be collected for purposes of
paragraph (1) during the period beginning with the first full
fiscal year quarter after the effective date of the amendments
made by subsection (a)(1) and ending September 30, 1996.
(4) Report.--By March 1, 1997, the Comptroller General of
the United States shall report to the Committee on Government
Operations of the House of Representatives, the Committee on
Governmental Affairs of the Senate, and the Committees on Small
Business of the House of Representatives and the Senate on the
effects of the increase in the small purchase threshold made by
the amendments made by subsection (a)(1).
(d) Functions of Administrator for Federal Procurement Policy.--
Section 6(d) of the Office of Federal Procurement Policy Act (41 U.S.C.
405(d)) is amended--
(1) in paragraph (7) by striking ``and'' after the
semicolon at the end; and
(2) by redesignating paragraph (8) as paragraph (10) and
inserting after paragraph (7) the following:
``(8) developing policies, in consultation with the
Administrator of the Small Business Administration, that ensure
that small businesses and small businesses owned and controlled
by socially and economically disadvantaged persons are provided
with the maximum practicable opportunities to participate in
procurements that are conducted below the small purchase
threshold;
``(9) developing policies that will promote achievement of
goals for participation by small businesses and small
businesses owned and controlled by socially and economically
disadvantaged individuals; and''.
(e) Implementation of Electronic Data Interchange for Procurement
Information.--The Office of Federal Procurement Policy Act (41 U.S.C.
401 et seq.) is further amended by adding after section 29 (as added by
section 502) the following:
``SEC. 30. ELECTRONIC INTERCHANGE OF PROCUREMENT INFORMATION.
``(a) In General.--The Administrator, in consultation with the
Office of Information and Regulatory Affairs, shall establish a program
and assign a program manager for, and provide overall direction of
policy and leadership in, the development, coordination, installation,
operation, and completion of implementation by executive agencies, by
not later than 5 years after the date of the enactment of the Federal
Acquisition Improvement Act of 1993, of a Federal Acquisition Computer
Network system architecture. Any system developed in accordance with
this architecture shall be known as a `FACNET system'. The FACNET
system architecture shall involve enabling technology and procurement
electronic data interchange transaction sets. The enabling technology
shall consist of a computer network, supporting data bases, and
standard interfaces that interconnect Government automated systems to
the network. The procurement electronic data interchange transaction
sets shall facilitate the electronic interchange of standard
procurement information between Government and industry automated
acquisition systems.
``(b) Functions of Administrator of General Services.--The
Administrator of General Services shall do the following:
``(1) Provide technical support for FACNET systems by doing
the following:
``(A) Coordinate with the Administrator to
facilitate the efficient and widespread implementation
of various FACNET systems by executive agencies. This
shall include interfacing FACNET systems to other
systems, such as the Government bank card and
Electronic Funds Transfer payment systems.
``(B) Assist the Director of the National Institute
of Standards and Technology in the development and
application of appropriate Federal Information
Processing Standards.
``(C) Prepare a technical plan for coordinating the
design, development, implementation, operation, and
maintenance of the FACNET system architecture. The plan
shall include roles and responsibilities, major
milestones, cost estimates, and performance
requirements.
``(2) Ensure compliance with section 111 of the Federal
Property and Administrative Services Act of 1949 in the
implementation of FACNET systems by executive agencies,
including by limiting the scope of delegations under subsection
(a) of that section.
``(3) Evaluate progress by executive agencies in
implementing FACNET systems, and recommend changes in that
implementation to the program manager assigned by the
Administrator under subsection (a).
``(4) Submit to the Congress, on the date that is one year
after the date of the enactment of the Federal Acquisition
Improvement Act of 1993 and on that date in each of the 5 years
thereafter, a report on the overall progress by the executive
branch of the Government and by each executive agency in
implementing the FACNET system architecture.
``(c) Implementation of FACNET Systems by Executive Agencies.--
``(1) In general.--The head of each executive agency shall
cooperate with the Administrator and the Administrator of
General Services to implement FACNET systems for the agency.
``(2) Designation of agency program manager.--
``(A) Designation.--The head of each executive
agency shall designate a program manager to implement
FACNET systems for the agency and otherwise implement
this section.
``(B) Functions.--A program manger designated under
this paragraph for an executive agency shall--
``(i) report directly to the senior
procurement executive designated for the agency
under section 16(4);
``(ii) be responsible for the timely and
cost-effective implementation of the FACNET
system architecture for the agency in a manner
that is responsive to the procurement needs of
the agency, national business needs, and the
public's interest in open government;
``(iii) develop plans for phasing-in the
implementation of FACNET systems for the
procuring activities of the executive agency
and phasing-out local network systems that
perform comparable procurement functions;
``(iv) participate in the interagency
development of standard procurement electronic
data interchange transaction sets; and
``(v) in carrying out this section, comply
with guidelines issued by the Administrator
under this section and program directives
issued by the Administrator of General Services
under section 111 of the Federal Property and
Administrative Services Act of 1949.
``(d) Functions of National Institute of Standards and
Technology.--The Director of the National Institute of Standards and
Technology shall--
``(1) ensure that the FACNET system architecture complies
with Federal Information Processing Standards;
``(2) issue additional standards for the FACNET system
architecture as necessary; and
``(3) establish tests to facilitate the aims of this
section and support policies established by the Administrator
under this section.
``(e) Functions of Small Business Administration.--The
Administrator of the Small Business Administration shall--
``(1) develop plans to coordinate and promote the use of
FACNET systems by small businesses, that incorporate outreach
efforts by the Small Business Administration, agency Offices of
Small and Disadvantaged Business and Utilization, Small
Business Development Centers, and other appropriate
organizations; and
``(2) inform and provide consistent and comprehensive
FACNET system training for small businesses.
``(f) FACNET System Compatibility Standards.--
``(1) In general.--The Administrator, in consultation with
the Office of Information and Regulatory Affairs, the
Administrator of General Services, the Administrator of the
Small Business Administration, and the Director of the National
Institute of Standards and Technology, shall prescribe policies
for ensuring convenient and universal access to FACNET systems,
and shall develop a set of system compatibility standards for
each FACNET system interface and FACNET system support data
base. The system compatibility standards shall specify the
functional capabilities of each FACNET system interface, and
the minimum set of data elements of each FACNET system support
data base. The system compatibility standards shall ensure that
the following FACNET system functions are satisfactorily
performed by each executive agency, executive agency component,
or procuring activity:
``(A) Provision of widespread public notice of
solicitations for contract opportunities issued by the
agency, component, or activity and of orders to be made
by the agency, component, or activity below the small
purchase threshold.
``(B) Allowing private users to electronically--
``(i) selectively access and review
solicitations issued by the agency, component,
or activity;
``(ii) respond to solicitations issued by
the agency, component, or activity;
``(iii) receive orders from the agency,
component, or activity; and
``(iv) access information on contract
awards made by the agency, component, or
activity.
``(2) Binding standards.--The FACNET system interface and
FACNET system support data base of each procuring activity
shall comply with the system compatibility standards developed
under paragraph (1), except to the extent the Administrator has
waived application of such standards to the activity under
paragraph (3).
``(3) Waivers.--
``(A) In general.--The Administrator may, in
writing, waive the application of any system
compatibility standard to a procuring activity if the
Administrator--
``(i) determines that compliance with the
standard by the procuring activity would
adversely affect the accomplishment of the
mission of the activity or cause a major
adverse financial impact on the activity which
is not offset by Government-wide savings; and
``(ii) approves a plan, developed by the
procuring activity, for complying with the
standard by not later than 1 year after the
issuance of the waiver.
``(B) Authority non-delegable.--The authority of
the Administrator to issue waivers under this paragraph
may not be delegated.
``(C) Request for waiver.--A waiver under this
paragraph may be issued by the Administrator only after
receipt of a request for the waiver submitted by the
program manager designated under subsection (c)(2)(A)
for the procuring activity for which the waiver is
requested.
``(D) Notice of waiver.--The Administrator shall
promptly submit a notice of each waiver under this
paragraph to the Committee on Government Operations of
the House of Representatives and the Committee on
Governmental Affairs of the Senate, and promptly
publish the notice in the Federal Register.''.
(f) Technical Corrections.--
(1) Section 18(d) of the Office of Federal Procurement
Policy Act (41 U.S.C. 416) is amended by striking ``(e)'' in
the first sentence and inserting ``(a)''.
(2) Section 18(a)(1) of the Office of Federal Procurement
Policy Act (41 U.S.C. 416(a)(1)) is amended--
(A) in subparagraph (A) in the matter following
clause (ii) by striking ``notice'' and inserting
``notice of solicitation''; and
(B) in subparagraph (B) in the matter preceding
clause (i) by striking ``a notice of solicitation
described in subsection (f)'' and inserting ``a notice
of solicitation described in subsection (b)''.
SEC. 504. TEST PROGRAM.
(a) In General.--The Administrator for Federal Procurement Policy
(in this section referred to as the ``Administrator'') may conduct a
program of tests of alternative and innovative procurement procedures.
To the extent consistent with this section, such program shall be
conducted consistent with section 15 of the Office of Federal
Procurement Policy Act (41 U.S.C. 413). No more than 6 such tests shall
be conducted under this authority.
(b) Designation of Agencies.--Each test conducted pursuant to
subsection (a) shall be limited to not more than 2 specific contracting
activities in an agency designated by the Administrator. Each agency so
designated shall select the contracting activities participating in the
test with the approval of the Administrator and shall designate a
procurement testing official who shall be responsible for the conduct
and evaluation of tests within that agency.
(c) Test Requirements.--Tests conducted under subsection (a)--
(1) shall be developed and structured by the Administrator
or by the agency senior procurement executives designated
pursuant to section 16(4) of the Office of Federal Procurement
Policy Act, as redesignated by section 111 of this Act, in
close coordination with the Administrator;
(2) shall be for a period of not greater than 4 years;
(3) shall be limited to specific programs of agencies or
specific acquisitions;
(4) may not include any test with a total estimated life-
cycle cost to the Government greater than $100,000,000;
(5) shall include--
(A) a test by the National Aeronautics and Space
Administration of simplified procurement procedures for
acquisitions with an estimated annual total obligation
of funds of $500,000 or less;
(B) a test by the General Services Administration
of expedited methods for procuring automatic data
processing equipment commodities;
(C) a test by at least one agency of streamlined
procedures for competition among interested sources
participating in the tailoring of a solicitation for
the purchase of commercial products; and
(D) a test of commercial item acquisition
procedures in which all evaluation factors and
subfactors on which a contract award will be based are
disclosed in the solicitation, identifying both the
absolute and relative weight for each factor and each
subfactor; and
(6) shall not include any procurement the cost of which is
expected to exceed $5,000,000 (including options).
(d) Limitation on Total Value of Contracts Under Program.--
(1) Limitation.--The Administrator shall ensure that the
total amount obligated under contracts awarded pursuant to the
program under this section does not exceed Sec. $600,000,000.
(2) Monitoring.--The Administrator shall monitor the value
of contracts awarded pursuant to the program under this
section.
(3) Prohibition on awards in excess of limit.--No contract
may be awarded under the program under this section if the
award of the contract would result in obligation of more than
$600,000,000 under contracts under this section.
(e) Procedures Authorized.--Tests conducted under this section may
include tests of any of the following procedures:
(1) Publication of agency needs prior to drafting of a
solicitation.
(2) Screening of sources and competition among capable
vendors.
(3) Issuance of draft solicitations for comment.
(4) Streamlined solicitations, with a minimized number of
evaluation factors and information required from vendors,
abbreviated periods for submission of offers, and page
limitations on offers.
(5) Limitation of source selection factors to--
(A) cost to the Government;
(B) past experience; and
(C) quality of the contents of the offer.
(6) Evaluation of proposals by small teams of highly
qualified people, limited to 30 days.
(7) Competition among sources of preevaluated products.
(8) Alternative notice and publication requirements.
(9) A process in which--
(A) the competitive process is initiated by a
notice in the Commerce Business Daily synopsizing the
needs of the executive agency conducting the test, in
functional and performance terms, with other
specifications provided for guidance only;
(B) the notice invites interested sources to submit
information or samples showing their product's
suitability for those needs (with price quotations) or,
if appropriate, showing the sources' technical
capability, past performance, product supportability,
or other qualifications (with appropriate consideration
to rates and other cost-related factors);
(C) contracting officials develop a request for
proposals (including appropriate specifications and
evaluation criteria) after reviewing the submittals
made by interested sources and, if the officials
determine necessary, after consultation with those
sources; and
(D) the contract is awarded after a streamlined
competition limited to all sources that timely provided
product information in response to the notice or, if
appropriate, to those sources determined most capable
based on those qualification-based factors included in
an invitation to submit information pursuant to
subparagraph (B).
(f) Test Plan.--Not later than 60 days before implementing any test
program under this section, the Administrator shall--
(1) provide a detailed test plan, including lists of any
regulations that are to be waived, and any written
determination under subsection (f)(1)(B) to the Committee on
Government Operations of the House of Representatives and the
Committee on Governmental Affairs of the Senate;
(2) provide a copy of the plan to the appropriate
authorizing committees of the House of Representatives and the
Senate; and
(3) publish the plan in the Federal Register and provide an
opportunity for public comment.
(g) Waiver of Procurement Regulations.--
(1) In general.--For purposes of a test conducted under
subsection (a), the Administrator may waive--
(A) any provision of the Federal Acquisition
Regulation that is not required by statute; and
(B) any provision of the Federal Acquisition
Regulation that is required by a provision of law
described in paragraph (2), the waiver of which the
Administrator determines in writing to be necessary to
conduct any test of any of the 9 procedures described
in subsection (e).
(2) Provisions of law described.--The provisions of law
referred to in paragraph (1) are the following:
(A) Section 3709 of the Revised Statutes (41 U.S.C.
5).
(B) Section 3710 of the Revised Statutes (41 U.S.C.
8).
(C) Section 3735 of the Revised Statutes (41 U.S.C.
13).
(D) Section 310 of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 260).
(E) Section 303 of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253).
(F) Section 2304 of title 10, United States Code.
(G) Section 303A of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253a).
(H) Section 303B of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253b).
(I) Section 2305 of title 10, United States Code.
(J) Section 303C of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253c).
(K) Section 2319 of title 10, United States Code.
(L) Section 4(6) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(6)).
(M) Section 18 of the Office of Federal Procurement
Policy Act (41 U.S.C. 416).
(N) Sections 8(e), (f), and (g) of the Small
Business Act (15 U.S.C. 637(e), (f), and (g)).
(h) Reports and Reviews.--
(1) Administrator.--The Administrator shall report to the
Congress on the results of each test conducted under subsection
(a).
(2) Comptroller general.--The Comptroller General of the
United States shall review each test conducted under subsection
(a) and report to the Congress on each test and shall report
annually to the Congress on the conduct of and results of all
tests conducted under subsection (a).
(i) Expiration of Authority.--The authority to conduct tests under
this section and to award contracts under such tests shall expire on
October 1, 1997. Contracts entered prior to October 1, 1997, pursuant
to a test shall remain in effect, notwithstanding the expiration of the
authority to conduct the test under this section.
SEC. 505. SINGLE AUDIT UNDER BROOKS ARCHITECT-ENGINEERS ACT.
Section 904 of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 544) is amended by adding at the end the following:
``(d) An agency may not perform any pre-award audit to evaluate
proposed costs under any contract, subcontract, or modification awarded
or made in accordance with this title in any case in which the
contracting officer determines that the objectives of the audit
reasonably can be met by accepting the results of an audit conducted by
a Federal Government audit agency within the previous year.''.
SEC. 506. BUY AMERICAN REQUIREMENT FOR FEDERAL AGENCIES.
(a) Applicability of Buy American Requirements.--The Administrator
of General Services shall ensure that the requirements of the Buy
American Act apply to all procurements, consistent with international
obligations, made with funds provided pursuant to the authorization
contained in the amendment made by section 601.
(b) Reports on Procurements From Foreign Entities.--The
Administrator of General Services shall submit to the Congress a report
on the amount of procurements from foreign entities made in fiscal
years 1994, 1995, and 1996 with funds provided pursuant to the
authorization contained in the amendment made by section 601. Such
report shall separately indicate the dollar value of items procured
with such funds for which the Buy American Act was waived pursuant to
the Trade Agreement Act of 1979 or any international agreement to which
the United States is a party.
(c) Prohibition of Contracts With Persons Falsely Labeling Products
as Made in America.--If the Administrator of General Services
determines that a person has been convicted of intentionally affixing a
label bearing a ``Made in America'' inscription to any product sold in
or shipped to the United States that is not made in America, the
Administrator shall determine, not later than 90 days after determining
that the person has been so convicted, whether the person should be
debarred from contracting with the General Services Administration. If
the Administrator determines that the person should not be debarred,
the Administrator shall submit to the Congress a report on such
determination not later than 30 days after the determination is made.
(d) Definitions.--For purposes of this section--
(1) the term ``Buy American Act'' means title III of the
Act entitled ``An Act making appropriations for the Treasury
and Post Office Departments for the fiscal year ending June 30,
1934, and for other purposes'', approved March 3, 1933 (41
U.S.C. 10a et seq.); and
(2) the term ``debar'' means to exclude, pursuant to
established administrative procedures, from Government
contracting and subcontracting for a specified period of time
commensurate with the seriousness of the failure or offense or
the inadequacy of performance.
SEC. 507. STUDY OF PARTICIPATION BY CERTAIN SMALL BUSINESSES IN FEDERAL
PROCUREMENT.
(a) Study.--The Administrator for Federal Procurement Policy shall
conduct a study of--
(1) the degree of participation by small businesses owned
and controlled by socially and economically disadvantaged
individuals in procurements conducted by executive agencies,
other than agencies in the Department of Defense; and
(2) the extent of compliance by those executive agencies
with the goals for participation by such businesses required by
Office of Federal Procurement Policy policy letter 91-1,
relating to Government-wide small business and small
disadvantaged business goals for procurement contracts.
(b) Report.--Not later than 6 months after the date of the
enactment of this Act, the Administrator for Federal Procurement Policy
shall submit a report on the study required under subsection (a) to the
Committee on Government Operations and the Committee on Small Business
of the House of Representatives, and to the Committee on Governmental
Affairs and the Committee on Small Business of the Senate. The report
shall include recommendations to facilitate the provision of authority
to executive agencies, other than agencies in the Department of
Defense, to conduct procurement set asides for small businesses owned
and controlled by socially and economically disadvantaged individuals,
and on improved outreach programs to increase the participation by such
businesses in procurements conducted by those executive agencies.
TITLE VI--PROVISIONS RELATING TO GENERAL SERVICES ADMINISTRATION
SEC. 601. AUTHORIZATION OF FUNCTIONS AND ACTIVITIES UNDER THE FEDERAL
PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949.
Section 603(a) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 475) is amended to read as follows:
``(a) There are authorized to be appropriated such sums as may be
necessary to carry out the provisions of this Act for each fiscal year
through the fiscal year ending on September 30, 1996, including payment
in advance, when authorized by the Administrator, for library
memberships in societies whose publications are available to members
only, or to members at a price lower than that charged to the general
public. Nothing in this subsection shall affect authorizations of
appropriations or appropriations set forth elsewhere in this Act.''.
SEC. 602. REQUIREMENTS FOR APPOINTMENTS TO SENIOR POSITIONS IN GENERAL
SERVICES ADMINISTRATION.
(a) In General.--Section 101 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 751) is amended by
redesignating subsection (f) as subsection (g) and by inserting after
subsection (e) the following new subsection:
``(f) A person appointed as the Deputy Administrator of General
Services or as the head of a principal organizational unit of the
General Services Administration shall, in addition to any other minimum
qualifications, have significant previous management experience in
government or the private sector in an area or areas directly related
to the functions and responsibilities of the position to which that
person is appointed.''.
(b) Effective Date.--The amendments made by subsection (a) shall
not apply to any person in a position affected by such amendments on
the date of the enactment of this Act.
SEC. 603. TERMINATION OF REQUIREMENT.
The laws of the United States are amended to read as if section 630
of Public Law 102-393 had not been enacted.
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Acquisition Improvement Act
of 1994''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--CONTRACT FORMATION
Subtitle A--Competition Statutes
Part I--Armed Services Acquisitions
subpart a--competition requirements
Sec. 1001. References to Federal Acquisition Regulation.
Sec. 1002. Exclusion of particular sources.
Sec. 1003. Exception to use of competitive procedures for continued
occupancy of leased space.
Sec. 1004. Approval for use of noncompetitive procedures.
Sec. 100subpart b--planning, solicitation, evaluation, and award
Sec. 1011. Source selection factors.
Sec. 1012. Solicitation provision regarding evaluation of purchase
options.
Sec. 1013. Prompt notice of award.
Sec. 1014. Post-award debriefings.
Sec. 1015. Protest file.
Sec. 1016. Award of multiple contracts.
Sec. 1017. Consideration of contractor past performance.
Sec. 1018. Discouragesubpart c--kinds of contractsclauses.
Sec. 1021. Repeal of requirement for Secretarial determination
regarding use of cost type or incentive
subpart d--miscellaneous provisions for the encouragement of
competition
Sec. 1031. Repeal of requirement for annual report by advocates for
competition.
Part II--Civilian Agency Acquisitions
subpart a--competition requirements
Sec. 1051. References to Federal Acquisition Regulation.
Sec. 1052. Exclusion of particular sources.
Sec. 1053. Exception to use of competitive procedures for continued
occupancy of leased space.
Sec. 105subpart b--planning, solicitation, evaluation, and award
Sec. 1061. Solicitation, evaluation, and award.
Sec. 1062. Solicitation provision regarding evaluation of purchase
options.
Sec. 1063. Prompt notice of award.
Sec. 1064. Post-award debriefings.
Sec. 1065. Protest file.
Sec. 1066. Award of multiple contracts.
Sec. 1067. Discouragesubpart c--kinds of contractsclauses.
Sec. 1071. Repeal of agency head determination regarding use of cost
type or incentive contract.
Sec. 1072. Multiyear contracts.
Part III--Acquisitions Generally
Sec. 1091. Repeal of requirement for annual report on competition.
Subtitle B--Truth in Negotiations
Part I--Armed Services Acquisitions
Sec. 1201. Stabilization of dollar threshold of applicability.
Sec. 1202. Exceptions to cost or pricing data requirements.
Sec. 1203. Right of United States to examine contractor records.
Sec. 1204. Consistency of time references.
Sec. 1205. Repeal of superseded provision.
Part II--Civilian Agency Acquisitions
Sec. 1251. Revision of civilian agency provisions to ensure uniform
treatment of cost or pricing data.
Sec. 1252. Repeal of obsolete provision.
Subtitle C--Research and Development
Sec. 1301. Cooperative agreements for advanced research.
Sec. 1302. Competition requirement for awards of grants and contracts
to colleges and universities.
Subtitle D--Procurement Protests
Part I--Protests to the Comptroller General
Sec. 1401. Review of protests and effect on contracts pending decision.
Sec. 1402. Decisions on protests.
Sec. 1403. Regulations.
Part II--Protests in Procurements of Automatic Data Processing
Sec. 1431. Periods for certain actions.
Sec. 1432. Dismissals of frivolous protests and recovery of costs.
Sec. 1433. Award of costs.
Sec. 1434. Dismissal agreements.
Sec. 1435. Matters to be covered in regulations.
Sec. 1436. Oversight of acquisition of automatic data processing
equipment by Federal agencies.
Subtitle E--Policy, Definitions, and Other Matters
Part I--Armed Services Acquisitions
Sec. 1501. Congressional defense procurement policy.
Sec. 1502. Definitions.
Sec. 1503. Delegation of procurement functions.
Sec. 1504. Determinations and decisions.
Sec. 1505. Restrictions on undefinitized contractual actions.
Sec. 1506. Repeal of requirement relating to production special tooling
and production special test equipment.
Sec. 1507. Regulations for bids.
Part II--Civilian Agency Acquisitions
Sec. 1551. Definitions.
Sec. 1552. Delegation of procurement functions.
Sec. 1553. Determinations and decisions.
Sec. 1554. Restrictions on undefinitized contractual actions.
TITLE II--CONTRACT ADMINISTRATION
Subtitle A--Contract Payment
Part I--Armed Services Acquisitions
Sec. 2001. Contract financing.
Sec. 2002. Repeal of vouchering procedures section.
Part II--Civilian Agency Acquisitions
Sec. 2051. Contract financing.
Part III--Acquisitions Generally
Sec. 2061. Interest penalty on contract close-out lag-time.
Subtitle B--Cost Principles
Part I--Armed Services Acquisitions
Sec. 2101. Allowable contract costs.
Sec. 2102. Repeal of contract profit controls during emergency periods.
Part II--Civilian Agency Acquisitions
Sec. 2151. Allowable contract costs.
Part III--Acquisitions Generally
Sec. 2161. Travel expenses of Government contractors.
Subtitle C--Audit and Access to Records
Part I--Armed Services Acquisitions
Sec. 2201. Consolidation and revision of authority to examine records
of contractors.
Part II--Civilian Agency Acquisitions
Sec. 2251. Authority to examine records of contractors.
Subtitle D--Cost Accounting Standards
Sec. 2301. Repeal of obsolete deadline regarding procedural regulations
for the Cost Accounting Standards Board.
Subtitle E--Administration of Contract Provisions Relating to Price,
Delivery, and Product Quality
Sec. 2401. Clarification of provision relating to quality control of
certain spare parts.
Sec. 2402. Contractor guarantees regarding weapon systems.
Subtitle F--Claims and Disputes
Sec. 2501. Certification of contract claims.
TITLE III--MAJOR SYSTEMS AND SERVICE SPECIFIC STATUTES
Subtitle A--Major Systems Statutes
Sec. 3001. Weapon development and procurement schedules.
Sec. 3002. Selected Acquisition Report requirement.
Sec. 3003. Unit cost report requirement.
Sec. 3004. Requirement for independent cost estimates and manpower
estimates before development or production.
Sec. 3005. Baseline description.
Sec. 3006. Repeal of requirement for competitive prototyping in major
programs.
Sec. 3007. Repeal of requirement for competitive alternative sources in
major programs.
Subtitle B--Testing Statutes
Sec. 3011. Authorization of less than full-up testing.
Sec. 3012. Limitation on quantities to be procured for low-rate initial
production.
Sec. 3013. Operational test and evaluation of defense acquisition
programs.
Subtitle C--Civil Reserve Air Fleet
Sec. 3021. Definition of contractor.
Sec. 3022. Consolidation of provisions relating to contractual
commitment of aircraft.
Sec. 3023. Use of military installations by contractors.
Subtitle D--Miscellaneous
Sec. 3051. Extension to Department of Defense generally of provision
relating to manufacture at factories and
arsenals.
Sec. 3052. Codification of accounting requirement for contracted
advisory and assistance services.
Sec. 3053. Regulations on procurement, production, warehousing, and
supply distribution functions.
Sec. 3054. Repeal of requirements regarding product evaluation
activities.
Sec. 3055. Codification and revision of limitation on lease of vessels,
aircraft, and vehicles.
Sec. 3056. Repeal of application of Public Contracts Act to certain
naval vessel contracts.
TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL
BUSINESS, AND MISCELLANEOUS LAWS
Subtitle A--Simplified Acquisition Threshold
Part I--Establishment of Threshold
Sec. 4001. Establishment of simplified acquisition threshold.
Sec. 4002. Federal Acquisition Computer Network.
Sec. 4003. Implementation in armed services.
Sec. 4004. Implementation in civilian agencies.
Part II--Simplification of Procedures
Sec. 4011. Small business provisions.
Sec. 4012. Procedures for purchases below micro-purchase threshold.
Sec. 4013. Procurement notice.
Sec. 4014. GAO test and report on performance of simplified acquisition
threshold.
Part III--Inapplicability of Laws to Acquisitions Not in Excess of
Simplified Acquisition Threshold
subpart a--generally
Sec. 4021. Inapplicability of future enacted procurement laws to
contracts not exceeding the simplified
subpart b--armed services acquisitions
Sec. 4031. Inapplicability of certain provisions of law.
Sec. 4032. Conforming amendments relating to inapplicability of certain
subpart c--civilian agency acquisitions
Sec. 4041. Inapplicability of certain provisions of law.
Sec. 4042. Conforming amendments relating to inapplicability of certain
subpart d--acquisitions generally
Sec. 4051. Conformance of certain procurement integrity requirements.
Sec. 4052. Inapplicability of the Drug-Free Workplace Act of 1988.
Part IV--Conforming Amendments
Sec. 4071. Armed services acquisitions.
Sec. 4072. Civilian agency acquisitions.
Sec. 4073. Office of Federal Procurement Policy Act.
Sec. 4074. Small Business Act.
Part V--Revision of Regulations
Sec. 4081. Revision required.
Subtitle B--Socioeconomic and Small Business Laws
Sec. 4101. Payment protections for subcontractors and suppliers.
Sec. 4102. Small business procurement advisory council.
Subtitle C--Miscellaneous Acquisition Laws
Sec. 4151. Restriction on use of noncompetitive procedures for
procurement from a specified source.
Sec. 4152. Repeal of obsolete provision.
TITLE V--STANDARDS OF CONDUCT
Sec. 5001. Contracting functions performed by Federal personnel.
Sec. 5002. Repeal of executed requirement for study and report.
Sec. 5003. Waiting period for significant changes proposed for
acquisition regulations.
Sec. 5004. Repeal of superseded and obsolete laws.
TITLE VI--DEFENSE TRADE AND COOPERATION
Sec. 6001. Exception to Buy American Act for micro-purchases.
Sec. 6002. Policy on purchase of foreign goods.
Sec. 6003. Consolidation of limitations on procurement of goods other
than American goods.
Sec. 6004. International cooperative agreements.
Sec. 6005. Miscellaneous repeals.
TITLE VII--COMMERCIAL ITEMS
Subtitle A--Armed Services Acquisitions
Sec. 7001. Establishment of new chapter in title 10.
Sec. 7002. Definitions.
Sec. 7003. Preference for acquisition of commercial items.
Sec. 7004. Pricing documentation for commercial items.
Sec. 7005. Regulations on acquisition of commercial items.
Sec. 7006. Principle of construction with future laws.
Sec. 7007. Inapplicability of certain provisions of law.
Sec. 7008. Conforming amendments relating to inapplicability of certain
provisions of law.
Subtitle B--Civilian Agency Acquisitions
Sec. 7011. Definitions.
Sec. 7012. Preference for acquisition of commercial items.
Sec. 7013. Pricing documentation for commercial items.
Sec. 7014. Regulations on acquisition of commercial items.
Sec. 7015. Principle of construction with future laws.
Sec. 7016. Inapplicability of certain provisions of law.
Sec. 7017. Conforming amendments relating to inapplicability of certain
provisions of law.
Subtitle C--Acquisitions Generally
Sec. 7021. Conforming amendment relating to inapplicability of certain
provisions of law.
Sec. 7022. Flexible deadlines for submission of offers of commercial
items.
Sec. 7023. Additional responsibilities for advocates for competition.
Sec. 7024. Provisions not affected.
Sec. 7025. Comptroller General review of Federal government use of
market research.
TITLE VIII--MISCELLANEOUS PROVISIONS
Sec. 8001. Contract goal for small disadvantaged businesses and certain
institutions of higher education.
Sec. 8002. Education and training.
Sec. 8003. Department of Defense acquisition of intellectual property
rights.
Sec. 8004. Cooperative purchasing.
Sec. 8005. Sense of Congress on negotiated rulemaking.
Sec. 8006. Extension of defense acquisition workforce policies
Government-wide.
Sec. 8007. Vendor and employee excellence awards.
Sec. 8008. Department of Defense review of antitrust cases with
national security implications.
Sec. 8009. Technical and clerical amendments.
TITLE IX--EFFECTIVE DATES AND REGULATIONS
Sec. 9001. Effective dates.
Sec. 9002. Regulations.
TITLE I--CONTRACT FORMATION
Subtitle A--Competition Statutes
PART I--ARMED SERVICES ACQUISITIONS
Subpart A--Competition Requirements
SEC. 1001. REFERENCES TO FEDERAL ACQUISITION REGULATION.
Section 2304 of title 10, United States Code, is amended--
(1) in subsection (a)(1)(A), by striking out
``modifications'' and all that follows through ``note)'' and
inserting in lieu thereof ``Federal Acquisition Regulation'';
and
(2) in subsection (g)(1), by striking out ``regulations
modified'' and all that follows through ``note)'' and inserting
in lieu thereof ``Federal Acquisition Regulation''.
SEC. 1002. EXCLUSION OF PARTICULAR SOURCES.
(a) Prohibition on Use of Classes of Purchases or Contracts.--
Section 2304(b) of title 10, United States Code, is amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2) The determination required of the head of an agency in
paragraph (1) may not be made for a class of purchases or contracts.'';
and
(3) in paragraph (4), as redesignated by paragraph (1), by
striking out ``paragraphs (1) and (2)'' and inserting in lieu
thereof ``paragraphs (1) and (3)''.
(b) Additional Justification To Exclude Particular Source.--Section
2304(b)(1) of such title is amended--
(1) by striking out ``or'' at the end of subparagraph (B);
(2) by striking out the period at the end of subparagraph
(C) and inserting in lieu thereof ``; or''; and
(3) by adding at the end the following new subparagraph:
``(D) would ensure a continuous and reliable source;
satisfy a critical need for health, safety, or other emergency
supplies; or satisfy projected needs resulting from a history
of high demand for the supply or service.''.
SEC. 1003. EXCEPTION TO USE OF COMPETITIVE PROCEDURES FOR CONTINUED
OCCUPANCY OF LEASED SPACE.
Section 2304(d)(1) of title 10, United States Code, is amended--
(1) by striking out ``and'' at the end of subparagraph (A);
(2) by striking out the period at the end of subparagraph
(B) and inserting in lieu thereof ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) in the case of a follow-on contract to acquire
leasehold interests in real property providing for the
continued occupancy by Federal agencies of space in buildings,
such space may be deemed to be available only from the
incumbent lessor and may be acquired through procedures other
than competitive procedures if a determination is made that (i)
the occupant agencies have a continuing need for the space,
(ii) the space meets the needs of the agencies, and (iii) the
incumbent lessor is willing to continue to provide the space at
a fair market price as established by the Government based on a
market survey or an appraisal conducted in accordance with
generally accepted real property appraisal procedures.''.
SEC. 1004. APPROVAL FOR USE OF NONCOMPETITIVE PROCEDURES.
Section 2304(f)(1)(B)(i) of title 10, United States Code, is
amended by inserting before the semicolon at the end the following:
``or by an official referred to in clause (ii), (iii), or (iv)''.
SEC. 1005. CONTRACTS FOR PROFESSIONAL AND TECHNICAL SERVICES.
(a) Amendment.--Section 2304(j)(4) of title 10, United States Code,
is amended--
(1) by inserting ``(A)'' after ``(4)''; and
(2) by adding at the end the following new subparagraph:
``(B) The Secretary of Defense may waive the limitation in
subparagraph (A) to the extent the Secretary considers the use of
master agreements necessary in order to further the policy set forth in
section 2331(a) of this title. During any fiscal year, such a waiver
may not increase the total value of task orders under master agreements
of a contracting activity by more than 20 percent of the value of all
contracts for advisory and assistance services awarded by that
contracting activity during fiscal year 1989.''.
(b) Conforming Repeal.--Subsection (c) of section 2331 of title 10,
United States Code, is repealed.
Subpart B--Planning, Solicitation, Evaluation, and Award
SEC. 1011. SOURCE SELECTION FACTORS.
Section 2305(a) of title 10, United States Code, is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)(i), by striking out
``nonprice-related factors)'' and inserting in lieu
thereof ``nonprice-related factors and significant
subfactors)''; and
(B) in subparagraph (B)(ii), by striking out
subclause (I) and inserting in lieu thereof the
following:
``(I) either a statement that the proposals are
intended to be evaluated with, and award made after,
discussions with the offerors, or a statement that the
proposals are intended to be evaluated, and award made,
without discussions with the offerors (other than
discussions conducted for the purpose of minor
clarification) unless discussions are determined to be
necessary; and''; and
(2) by striking out paragraph (3) and inserting in lieu
thereof the following:
``(3)(A) In prescribing the evaluation factors to be included in
each solicitation for competitive proposals, the head of an agency
shall clearly establish the relative importance assigned to the
evaluation factors and significant subfactors, including cost or price
and the quality of the product or services to be provided (including
technical capability, management capability, and prior experience of
the offeror).
``(B) Nothing in this paragraph prohibits an agency from--
``(i) providing additional information in a solicitation,
including numeric weights for all evaluation factors (and
significant subfactors); or
``(ii) stating in a solicitation that award will be made to
the offeror that meets the solicitation's mandatory
requirements at the lowest price or cost.''.
SEC. 1012. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE
OPTIONS.
Section 2305(a) of title 10, United States Code, as amended by
section 1011, is further amended by adding at the end the following new
paragraph:
``(4) The head of an agency, in issuing a solicitation for a
contract to be awarded using sealed bid procedures, may not include in
such solicitation a clause providing for the evaluation of prices under
the contract for options to purchase additional supplies or services
under the contract unless the head of the agency has determined that
there is a reasonable likelihood that the options will be exercised.''.
SEC. 1013. PROMPT NOTICE OF AWARD.
(a) Sealed Bid Procedures.--Section 2305(b) of title 10, United
States Code, is amended by adding at the end of paragraph (3) the
following: ``Within 3 working days after the date of contract award,
the head of the agency shall notify, in writing or by electronic means,
all offerors not awarded the contract that the contract has been
awarded.''.
(b) Competitive Proposals Procedures.--Such section is further
amended in the second sentence of paragraph (4)(B) by striking out
``shall promptly notify'' and inserting in lieu thereof ``, within 3
working days after the date of contract award, shall notify, in writing
or by electronic means,''.
SEC. 1014. POST-AWARD DEBRIEFINGS.
Section 2305(b) of title 10, United States Code, is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new
paragraph (5):
``(5)(A) When a contract is awarded by an agency on the basis of
competitive proposals, an unsuccessful offeror, upon written request
received by the agency within 3 working days after the date of receipt
of notification of the contract award, shall be debriefed and furnished
the basis for the selection decision and contract award. An employee of
the agency shall debrief the offeror within, to the maximum extent
practicable, 4 working days after receipt of the request by the agency.
``(B) Such debriefing shall include, at a minimum--
``(i) the agency's evaluation of the significant weak or
deficient factors in the offeror's offer;
``(ii) the overall evaluated cost of the offer of the
contractor awarded the contract and the overall evaluated cost
of the offer of the debriefed offeror;
``(iii) the overall ranking of all offers and the total
technical and cost scores of all offers;
``(iv) a summary of the rationale for the award;
``(v) in the case of an offer by the debriefed offeror that
includes a commercial end item, the make and model (or
equivalent description) of the item included in the offer of
the contractor awarded the contract; and
``(vi) reasonable responses to questions posed by the
debriefed offeror as to whether source selection procedures set
forth in the solicitation, applicable regulations, and other
applicable authorities were followed by the agency.
``(C) The debriefing shall not include point-by-point comparisons
of the debriefed offeror's offer with other offers and shall not
disclose any information that is exempt from disclosure under section
552 of title 5.
``(D) Each solicitation for competitive proposals shall include a
statement that information described in subparagraph (B) may be
disclosed in post-award debriefings.
``(E) If, within one year after the date of the contract award and
as a result of a successful procurement protest or otherwise, the
agency seeks to fulfill the same requirement under the contract on the
basis of the best and final offers considered in the awarding of that
contract, the agency shall make available to offerors--
``(i) all information provided in debriefings under this
paragraph regarding the offer of the contractor awarded the
contract; and
``(ii) all comparable information with respect to the
original offerors.
``(F) The contracting officer shall include a summary of the
debriefing in the contract file.''.
SEC. 1015. PROTEST FILE.
Section 2305 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(e)(1) If, in the case of a solicitation for a contract issued
by, or an award or proposed award of a contract by, the head of an
agency, a protest is filed pursuant to the procedures in subchapter V
of chapter 35 of title 31 and an actual or prospective offeror so
requests, a file of the protest shall be established by the contracting
activity and reasonable access shall be provided to actual or
prospective offerors.
``(2) A file established pursuant to paragraph (1) shall contain
such information as would ordinarily be releasable under section 552 of
title 5 (commonly referred to as the `Freedom of Information Act').
``(3) Regulations implementing this subsection shall be consistent
with the regulations regarding the preparation and submission of an
agency's protest file (the so-called `rule 4 file') for protests to the
General Services Board of Contract Appeals under the Contract Disputes
Act of 1978 (41 U.S.C. 601 et seq.).''.
SEC. 1016. AWARD OF MULTIPLE CONTRACTS.
Section 2305 of title 10, United States Code, is amended by adding
after subsection (e), as added by section 1015, the following new
subsection:
``(f) Award of Multiple Contracts.--In procuring any supply or
service using competitive procedures, the head of an agency may award
more than one contract for the same supply or service in any case in
which the head of the agency determines that it is in the best
interests of the Federal Government to award those contracts for the
purpose of maintaining a continuous source for the supply or
service.''.
SEC. 1017. CONSIDERATION OF CONTRACTOR PAST PERFORMANCE.
Paragraph (3) of section 2305(a) of title 10, United States Code,
as amended by section 1011(2), is further amended by striking out
``capability, and prior experience'' in subparagraph (A) and inserting
in lieu thereof ``capability, prior experience, and past performance''.
SEC. 1018. DISCOURAGEMENT OF NONSTANDARD CONTRACT CLAUSES.
Section 2305 of title 10, United States Code, is amended by adding
after subsection (f), as added by section 1016, the following new
subsection:
``(g) Nonstandard Contract Clauses.--The Secretary of Defense shall
prescribe regulations to discourage, to the maximum extent practicable,
the use of a nonstandard contract clause on a repetitive basis. The
regulations shall include provisions that--
``(1) clearly define nonstandard clauses; and
``(2) require prior approval for the use of a nonstandard
clause on a repetitive basis by an official at a level of
responsibility above the contracting officer.''.
Subpart C--Kinds of Contracts
SEC. 1021. REPEAL OF REQUIREMENT FOR SECRETARIAL DETERMINATION
REGARDING USE OF COST TYPE OR INCENTIVE CONTRACT.
Subsection (c) of section 2306 of title 10, United States Code, is
repealed.
Subpart D--Miscellaneous Provisions for the Encouragement of
Competition
SEC. 1031. REPEAL OF REQUIREMENT FOR ANNUAL REPORT BY ADVOCATES FOR
COMPETITION.
Subsection (c) of section 2318 of title 10, United States Code, is
repealed.
PART II--CIVILIAN AGENCY ACQUISITIONS
Subpart A--Competition Requirements
SEC. 1051. REFERENCES TO FEDERAL ACQUISITION REGULATION.
Section 303 of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 253) is amended--
(1) in subsection (a)(1)(A), by striking out
``modifications'' and all that follows through ``of 1984'' and
inserting in lieu thereof ``Federal Acquisition Regulation'';
and
(2) in subsection (g)(1), by striking out ``regulations
modified'' and all that follows through ``of 1984,'' and
inserting in lieu thereof ``Federal Acquisition Regulation''.
SEC. 1052. EXCLUSION OF PARTICULAR SOURCES.
(a) Prohibition on Use of Classes of Purchases or Contracts.--
Section 303(b) of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 253(b)) is amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2) The determination required of the agency head in paragraph
(1) may not be made for a class of purchases or contracts.''; and
(3) in paragraph (4), as redesignated by paragraph (1), by
striking out ``paragraphs (1) and (2)'' and inserting in lieu
thereof ``paragraphs (1) and (3)''.
(b) Additional Justification To Exclude Particular Source.--Section
303(b)(1) of the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 253(b)(1)) is amended--
(1) by striking out ``or'' at the end of subparagraph (B);
(2) by striking out the period at the end of subparagraph
(C) and inserting in lieu thereof ``; or''; and
(3) by adding at the end the following new subparagraph:
``(D) would ensure a continuous and reliable source;
satisfy a critical need for health, safety, or other emergency
supplies; or satisfy projected needs resulting from a history
of high demand for the supply or service.''.
SEC. 1053. EXCEPTION TO USE OF COMPETITIVE PROCEDURES FOR CONTINUED
OCCUPANCY OF LEASED SPACE.
Section 303(d)(1) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253(d)(1)) is amended--
(1) by striking out ``and'' at the end of subparagraph (A);
(2) by striking out the period at the end of subparagraph
(B) and inserting in lieu thereof ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) in the case of a follow-on contract to acquire
leasehold interests in real property providing for the
continued occupancy by Federal agencies of space in buildings,
such space may be deemed to be available only from the
incumbent lessor and may be acquired through procedures other
than competitive procedures if a determination is made that (i)
the occupant agencies have a continuing need for the space,
(ii) the space meets the needs of the agencies, and (iii) the
incumbent lessor is willing to continue to provide the space at
a fair market price as established by the Government based on a
market survey or an appraisal conducted in accordance with
generally accepted real property appraisal procedures.''.
SEC. 1054. APPROVAL FOR USE OF NONCOMPETITIVE PROCEDURES.
Section 303(f)(1)(B)(i) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(i)) is amended by
inserting before the semicolon at the end the following: ``or by an
official referred to in clause (ii), (iii), or (iv)''.
Subpart B--Planning, Solicitation, Evaluation, and Award
SEC. 1061. SOLICITATION, EVALUATION, AND AWARD.
(a) Content of Solicitation.--Section 303A of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253a) is amended--
(1) in subsection (b)(1)(A)--
(A) by inserting ``and significant subfactors''
after ``all significant factors''; and
(B) by striking out ``(including price)'' and
inserting ``(including cost or price, cost-related or
price-related factors and subfactors, and noncost-
related or nonprice-related factors and significant
subfactors)'';
(2) in subsection (b)(1)(B), by inserting ``and
subfactors'' after ``factors'';
(3) in subsection (b)(2)(B), by striking out clause (i) and
inserting in lieu thereof the following:
``(i) either a statement that the proposals are
intended to be evaluated with, and award made after,
discussions with the offerors, or a statement that the
proposals are intended to be evaluated, and award made,
without discussions with the offerors (other than
discussions conducted for the purpose of minor
clarification) unless discussions are determined to be
necessary; and''; and
(4) by adding at the end the following new subsection:
``(c)(1) In prescribing the evaluation factors to be included in
each solicitation for competitive proposals, an agency head shall
clearly establish the relative importance assigned to the evaluation
factors and significant subfactors, including cost or price and the
quality of the product or services to be provided (including technical
capability, management capability, prior experience, and past
performance of the offeror).
``(2) Nothing in this subsection prohibits an agency from--
``(A) providing additional information in a solicitation,
including numeric weights for all evaluation factors (and
significant subfactors); or
``(B) stating in a solicitation that award will be made to
the offeror that meets the solicitation's mandatory
requirements at the lowest price or cost.''.
(b) Evaluation and Award.--Section 303B of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended--
(1) in subsection (a), by inserting ``, and award a
contract,'' after ``competitive proposals'';
(2) in subsection (c), by inserting ``in accordance with
subsection (a)'' in the second sentence after ``shall evaluate
the bids''; and
(3) in subsection (d)--
(A) by striking out paragraph (1) and inserting in
lieu thereof the following:
``(1) An agency head shall evaluate competitive proposals in
accordance with subsection (a) and may award a contract--
``(A) after discussions with the offerors, provided that
written or oral discussions have been conducted with all
responsible offerors who submit proposals within the
competitive range; or
``(B) based on the proposals received and without
discussions with the offerors (other than discussions conducted
for the purpose of minor clarification), provided that, as
required by section 303A(b)(2)(B)(i), the solicitation included
a statement that proposals are intended to be evaluated, and
award made, without discussions, unless discussions are
determined to be necessary.''; and
(B) by striking out paragraphs (2) and (3) and by
redesignating paragraph (4) as paragraph (2).
(c) Applicability.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to--
(A) solicitations for sealed bids or competitive
proposals issued after the end of the 180-day period
beginning on the date of the enactment of this Act; and
(B) contracts awarded pursuant to those
solicitations.
(2) Authority to apply amendments early.--The head of an
executive agency may apply the amendments made by this section
to solicitations issued before the end of the period referred
to in paragraph (1). The head of the executive agency shall
publish in the Federal Register notice of any such earlier date
of application at least 10 days before that date.
SEC. 1062. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE
OPTIONS.
Section 303A of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253a), as amended by section 1061(a)(4), is
further amended by adding at the end the following new subsection:
``(d) An agency head, in issuing a solicitation for a contract to
be awarded using sealed bid procedures, may not include in such
solicitation a clause providing for the evaluation of prices under the
contract for options to purchase additional supplies or services under
the contract unless the agency head has determined that there is a
reasonable likelihood that the options will be exercised.''.
SEC. 1063. PROMPT NOTICE OF AWARD.
(a) Sealed Bid Procedures.--Subsection (c) of section 303B of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C.
253b) is amended by adding at the end the following: ``Within 3 working
days after the date of contract award, the agency head shall notify, in
writing or by electronic means, offerors not awarded the contract that
the contract has been awarded.''.
(b) Competitive Proposals Procedures.--Paragraph (2) of section
303B(d) of the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253b(d)), as redesignated by section 1061(b)(3)(B), is
amended in the second sentence by striking out ``shall promptly
notify'' and inserting in lieu thereof ``, within 3 working days after
the date of contract award, shall notify, in writing or by electronic
means,''.
SEC. 1064. POST-AWARD DEBRIEFINGS.
Section 303B of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253b) is amended--
(1) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (d) the following new
subsection (e):
``(e)(1) When a contract is awarded by an executive agency on the
basis of competitive proposals, an unsuccessful offeror, upon written
request received by the executive agency within 3 working days after
the date of receipt of notification of the contract award, shall be
debriefed and furnished the basis for the selection decision and
contract award. An employee of the executive agency shall debrief the
offeror within, to the maximum extent practicable, 4 working days after
receipt of the request by the executive agency.
``(2) Such debriefing shall include, at a minimum--
``(A) the executive agency's evaluation of the significant
weak or deficient factors in the offeror's offer;
``(B) the overall evaluated cost of the offer of the
contractor awarded the contract and the overall evaluated cost
of the offer of the debriefed offeror;
``(C) the overall ranking of all offers and the total
technical and cost scores of all offers;
``(D) a summary of the rationale for the award;
``(E) in the case of an offer by the debriefed offeror that
includes a commercial end item, the make and model (or
equivalent description) of the item included in the offer of
the contractor awarded the contract; and
``(F) reasonable responses to questions posed by the
debriefed offeror as to whether source selection procedures set
forth in the solicitation, applicable regulations, and other
applicable authorities were followed by the executive agency.
``(3) The debriefing shall not include point-by-point comparisons
of the debriefed offeror's offer with other offers and shall not
disclose any information that is exempt from disclosure under section
552 of title 5, United States Code.
``(4) Each solicitation for competitive proposals shall include a
statement that information described in paragraph (2) may be disclosed
in post-award debriefings.
``(5) If, within one year after the date of the contract award and
as a result of a successful procurement protest or otherwise, the
executive agency seeks to fulfill same the requirement under the
contract on the basis of a new solicitation of offers or on the basis
of the best and final offers considered in the awarding of that
contract, the agency head shall make available to offerors--
``(A) all information provided in debriefings under this
subsection regarding the offer of the contractor awarded the
contract; and
``(B) all comparable information with respect to the
original offerors.
``(6) The contracting officer shall include a summary of the
debriefing in the contract file.''.
SEC. 1065. PROTEST FILE.
Section 303B of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253b) is amended by adding at the end the
following new subsection:
``(h)(1) If, in the case of a solicitation for a contract issued
by, or an award or proposed award of a contract by, an agency head, a
protest is filed pursuant to the procedures in subchapter V of chapter
35 of title 31, United States Code, and an actual or prospective
offeror so requests, a file of the protest shall be established by the
contracting activity and reasonable access shall be provided to actual
or prospective offerors.
``(2) A file established pursuant to paragraph (1) shall contain
such information as would ordinarily be releasable under section 552 of
title 5 (commonly referred to as the `Freedom of Information Act').
``(3) Regulations implementing this subsection shall be consistent
with the regulations regarding the preparation and submission of an
agency's protest file (the so-called `rule 4 file') for protests to the
General Services Board of Contract Appeals under the Contract Disputes
Act of 1978 (41 U.S.C. 601 et seq.).''.
SEC. 1066. AWARD OF MULTIPLE CONTRACTS.
Section 303B of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253b), as amended by section 1065, is further
amended by adding at the end the following new subsection:
``(i) Award of Multiple Contracts.--In procuring any supply or
service using competitive procedures, an executive agency may award
more than one contract for the same supply or service in any case in
which the head of the agency determines that it is in the best
interests of the Federal Government to award those contracts for the
purpose of maintaining a continuous source for the supply or
service.''.
SEC. 1067. DISCOURAGEMENT OF NONSTANDARD CONTRACT CLAUSES.
Section 303B of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253b), as amended by section 1066, is further
amended by adding at the end the following new subsection:
``(j) Nonstandard Contract Clauses.--The head of each executive
agency shall promulgate regulations to discourage, to the maximum
extent practicable, the use of a nonstandard contract clause on a
repetitive basis. The regulations shall include provisions that--
``(1) clearly define nonstandard clauses; and
``(2) require prior approval for the use of a nonstandard
clause on a repetitive basis by an official at a level of
responsibility above the contracting officer.''.
Subpart C--Kinds of Contracts
SEC. 1071. REPEAL OF AGENCY HEAD DETERMINATION REGARDING USE OF COST
TYPE OR INCENTIVE CONTRACT.
Section 304(b) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 254(b)) is amended by striking out the second
sentence.
SEC. 1072. MULTIYEAR CONTRACTS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.) is amended by inserting after section
304 the following new section:
``SEC. 304A. MULTIYEAR CONTRACTS.
``(a) In General.--To the extent that funds are otherwise available
for obligation, the head of an agency may make multiyear contracts for
the purchase of property, whenever the agency head finds--
``(1) that the use of such a contract will result in
substantial savings of the total anticipated costs of carrying
out the program through annual contracts;
``(2) that the minimum need for the property to be
purchased is expected to remain substantially unchanged during
the contemplated contract period in terms of production rate,
procurement rate, and total quantities;
``(3) that there is a reasonable expectation that
throughout the contemplated contract period the executive
agency will request funding for the contract at the level
required to avoid contract cancellation;
``(4) that there is a stable design for the property to be
acquired and that the technical risks associated with such
property are not excessive; and
``(5) that the estimates of both the cost of the contract
and the anticipated cost avoidance through the use of a
multiyear contract are realistic.
``(b)(1) The head of the agency shall prescribe acquisition
regulations to promote the use of multiyear contracting as authorized
by subsection (a) in a manner that will allow the most efficient use of
multiyear contracting.
``(2) Such regulations may provide for cancellation provisions in
such multiyear contracts to the extent that such provisions are
necessary and in the best interests of the United States. Such
cancellation provisions may include consideration of both recurring and
nonrecurring costs of the contractor associated with the production of
the items to be delivered under the contract.
``(3) Such regulations shall also provide that, to the extent
practicable, the administration of this section, and of the regulations
prescribed under this section, shall not be carried out in a manner to
preclude or curtail the existing ability of the executive agency to--
``(A) provide for competition in the production of items to
be delivered under such a contract; or
``(B) provide for termination of a prime contract the
performance of which is deficient with respect to cost,
quality, or schedule.
``(c) Before any contract described in subsection (a) that contains
a clause setting forth a cancellation ceiling in excess of $100,000,000
may be awarded, the head of the agency shall give written notification
of the proposed contract and of the proposed cancellation ceiling for
that contract to the Congress, and such contract may not then be
awarded until the end of a period of 30 days beginning on the date of
such notification.
``(d) Contracts may be made under this section for advance
procurement, if feasible and practical, in order to achieve economic-
lot purchases and more efficient production rates.
``(e) In the event funds are not made available for the
continuation of a contract made under this section into a subsequent
fiscal year, the contract shall be canceled or terminated, and the
costs of cancellation or termination may be paid from--
``(1) appropriations originally available for the
performance of the contract concerned;
``(2) appropriations currently available for procurement of
the type of property concerned, and not otherwise obligated; or
``(3) funds appropriated for those payments.
``(f) This section does not apply to contracts for the purchase of
property to which section 111 of this Act applies.
``(g) For the purposes of this section, a multiyear contract is a
contract for the purchase of property or services for more than one,
but not more than five, program years. Such a contract may provide that
performance under the contract during the second and subsequent years
of the contract is contingent upon the appropriation of funds and (if
it does so provide) may provide for a cancellation payment to be made
to the contractor if such appropriations are not made.''.
PART III--ACQUISITIONS GENERALLY
SEC. 1091. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON COMPETITION.
Section 23 of the Office of Federal Procurement Policy Act (41
U.S.C. 419) is repealed.
Subtitle B--Truth in Negotiations
PART I--ARMED SERVICES ACQUISITIONS
SEC. 1201. STABILIZATION OF DOLLAR THRESHOLD OF APPLICABILITY.
(a) Dollar Threshold Stabilization for Offerors for Prime
Contracts.--Paragraph (1)(A) of section 2306a(a) of title 10, United
States Code, is amended--
(1) in clause (i), by striking out ``and before January 1,
1996,''; and
(2) in clause (ii), by striking out ``or after December 31,
1995,''.
(b) Adjustment of Dollar Threshold.--Such section is further
amended by adding at the end the following new paragraph:
``(7) The dollar amount in each of subparagraphs (A), (B), (C), and
(D) of paragraph (1) shall be adjusted on October 1 of each year
divisible by 5 to the equivalent amount in constant fiscal year 1993
dollars (rounded to the nearest $1,000).''.
SEC. 1202. EXCEPTIONS TO COST OR PRICING DATA REQUIREMENTS.
(a) Exceptions.--Subsection (b) of section 2306a of title 10,
United States Code, is amended to read as follows:
``(b) Exceptions.--(1) This section shall not be applied to a
contract or subcontract, or a modification to a contract or
subcontract--
``(A) for which the price agreed upon is based on--
``(i) adequate price competition;
``(ii) established catalog or market prices of
commercial items or of services regularly used for
other than Federal Government purposes, as the case may
be, that are sold in sufficient quantities to the
general public; or
``(iii) prices set by law or regulation; or
``(B) in an exceptional case when the head of the agency
determines that the requirements of this section may be waived
and states in writing the reasons for such determination.
``(2) The Federal Acquisition Regulation (issued under section
25(c) of the Office of Federal Procurement Policy Act (41 U.S.C.
421(c)) shall provide clear standards for determining whether the
exceptions provided in paragraph (1)(A) apply. In the case of the
exception provided in paragraph (1)(A)(i), the regulations shall
specify the criteria to be used to determine whether adequate price
competition exists. In the case of the exception provided in paragraph
(1)(A)(ii), the regulations shall preclude the consideration of sales
to the Federal Government, including the percentage of an item's
overall sales that are made to the Federal Government, when determining
whether the item has been sold in sufficient quantities to the
public.''.
(b) Limitation on Additional Authority.--Subsection (c) of such
section is amended by adding at the end the following new sentence:
``The head of an agency may not require such data to be submitted under
this subsection for any contract or subcontract, or modification to a
contract or subcontract, covered by the exceptions in subsection
(b).''.
SEC. 1203. RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR RECORDS.
Subsection (f) of section 2306a of title 10, United States Code, is
amended to read as follows:
``(f) Right of United States To Examine Contractor Records.--For
the purpose of evaluating the accuracy, completeness, and currency of
cost or pricing data required to be submitted by this section, the head
of an agency shall have the rights provided by section 2313(a)(2) of
this title.''.
SEC. 1204. CONSISTENCY OF TIME REFERENCES.
Section 2306a of title 10, United States Code, is amended--
(1) in subparagraphs (A)(ii) and (B)(ii) of subsection
(d)(4), by inserting ``or, if applicable consistent with
paragraph (1)(B), another date agreed upon between the
parties'' after ``(or price of the modification)''; and
(2) in subsection (g), by inserting ``or, if applicable
consistent with subsection (d)(1)(B), another date agreed upon
between the parties'' after ``(or the price of a contract
modification)''.
SEC. 1205. REPEAL OF SUPERSEDED PROVISION.
Subsection (c) of section 803 of Public Law 101-510 (10 U.S.C.
2306a note) is repealed.
PART II--CIVILIAN AGENCY ACQUISITIONS
SEC. 1251. REVISION OF CIVILIAN AGENCY PROVISIONS TO ENSURE UNIFORM
TREATMENT OF COST OR PRICING DATA.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.) is further amended--
(1) in section 304, by striking out subsection (d); and
(2) by inserting after section 304A, as added by section
1072, the following new section:
``SEC. 304B. COST OR PRICING DATA: TRUTH IN NEGOTIATIONS.
``(a) Required Cost or Pricing Data and Certification.--(1) An
agency head shall require offerors, contractors, and subcontractors to
make cost or pricing data available as follows:
``(A) An offeror for a prime contract under this title to
be entered into using procedures other than sealed-bid
procedures shall be required to submit cost or pricing data
before the award of a contract if--
``(i) in the case of a prime contract entered into
after the date of the enactment of the Federal
Acquisition Improvement Act of 1994, the price of the
contract to the United States is expected to exceed
$500,000; and
``(ii) in the case of a prime contract entered into
on or before the date of the enactment of the Federal
Acquisition Improvement Act of 1994, the price of the
contract to the United States is expected to exceed
$100,000.
``(B) The contractor for a prime contract under this
chapter shall be required to submit cost or pricing data before
the pricing of a change or modification to the contract if--
``(i) in the case of a change or modification made
to a prime contract referred to in subparagraph (A)(i),
the price adjustment is expected to exceed $500,000;
``(ii) in the case of a change or modification made
to a prime contract that was entered into on or before
the date of the enactment of the Federal Acquisition
Improvement Act of 1994, and that has been modified
pursuant to paragraph (6), the price adjustment is
expected to exceed $500,000; and
``(iii) in the case of a change or modification not
covered by clause (i) or (ii), the price adjustment is
expected to exceed $100,000.
``(C) An offeror for a subcontract (at any tier) of a
contract under this title shall be required to submit cost or
pricing data before the award of the subcontract if the prime
contractor and each higher-tier subcontractor have been
required to make available cost or pricing data under this
section and--
``(i) in the case of a subcontract under a prime
contract referred to in subparagraph (A)(i), the price
of the subcontract is expected to exceed $500,000;
``(ii) in the case of a subcontract entered into
under a prime contract that was entered into on or
before the date of the enactment of the Federal
Acquisition Improvement Act of 1994, and that has been
modified pursuant to paragraph (6), the price of the
subcontract is expected to exceed $500,000; and
``(iii) in the case of a subcontract not covered by
clause (i) or (ii), the price of the subcontract is
expected to exceed $100,000.
``(D) The subcontractor for a subcontract covered by
subparagraph (C) shall be required to submit cost or pricing
data before the pricing of a change or modification to the
subcontract if--
``(i) in the case of a change or modification to a
subcontract referred to in subparagraph (C)(i) or
(C)(ii), the price adjustment is expected to exceed
$500,000; and
``(ii) in the case of a change or modification to a
subcontract referred to in subparagraph (C)(iii), the
price adjustment is expected to exceed $100,000.
``(2) A person required, as an offeror, contractor, or
subcontractor, to submit cost or pricing data under paragraph (1) (or
required by the head of the contracting activity concerned to submit
such data under subsection (c)) shall be required to certify that, to
the best of the person's knowledge and belief, the cost or pricing data
submitted are accurate, complete, and current.
``(3) Cost or pricing data required to be submitted under paragraph
(1) (or under subsection (c)), and a certification required to be
submitted under paragraph (2), shall be submitted--
``(A) in the case of a submission by a prime contractor (or
an offeror for a prime contract), to the contracting officer
for the contract (or to a designated representative of the
contracting officer); or
``(B) in the case of a submission by a subcontractor (or an
offeror for a subcontract), to the prime contractor.
``(4) Except as provided under subsection (b), this section applies
to contracts entered into by an agency head on behalf of a foreign
government.
``(5) For purposes of paragraph (1)(C), a contractor or
subcontractor granted a waiver under subsection (b)(2) shall be
considered as having been required to make available cost or pricing
data under this section.
``(6) Upon the request of a contractor that was required to submit
cost or pricing data under paragraph (1) in connection with a prime
contract entered into on or before the date of the enactment of the
Federal Acquisition Improvement Act of 1994, the agency head that
entered into such contract shall modify the contract to reflect
subparagraphs (B)(ii) and (C)(ii) of paragraph (1). All such
modifications shall be made without requiring consideration.
``(7) The dollar amount in each of subparagraphs (A), (B), (C), and
(D) of paragraph (1) shall be adjusted on October 1 of each year
divisible by 5 to the equivalent amount in constant fiscal year 1993
dollars (rounded to the nearest $1,000).
``(b) Exceptions.--(1) This section shall not be applied to a
contract or subcontract, or a modification to a contract or
subcontract--
``(A) for which the price agreed upon is based on--
``(i) adequate price competition;
``(ii) established catalog or market prices of
commercial items or of services regularly used for
other than Federal Government purposes, as the case may
be, that are sold in sufficient quantities to the
general public; or
``(iii) prices set by law or regulation; or
``(B) in an exceptional case when the head of the agency
determines that the requirements of this section may be waived
and states in writing the reasons for such determination.
``(2) The Federal Acquisition Regulation (issued under section
25(c) of the Office of Federal Procurement Policy Act (41 U.S.C.
421(c)) shall provide clear standards for determining whether the
exceptions provided in paragraph (1)(A) apply. In the case of the
exception provided in paragraph (1)(A)(i), the regulations shall
specify the criteria to be used to determine whether adequate price
competition exists. In the case of the exception provided in paragraph
(1)(A)(ii), the regulations shall preclude the consideration of sales
to the Federal Government, including the percentage of an item's
overall sales that are made to the Federal Government, when determining
whether the item has been sold in sufficient quantities to the public.
``(c) Authority To Require Cost or Pricing Data.--When cost or
pricing data are not required to be submitted by subsection (a), such
data may nevertheless be required to be submitted by the head of the
agency if the head of the agency determines that such data are
necessary for the evaluation by the agency of the reasonableness of the
price of the contract or subcontract. In any case in which the head of
the agency requires such data to be submitted under this subsection,
the head of the agency shall document in writing the reasons for such
requirement. The head of an agency may not require such data to be
submitted under this subsection for any contract or subcontract, or
modification to a contract or subcontract, covered by the exceptions in
subsection (b).
``(d) Price Reductions for Defective Cost or Pricing Data.--(1)(A)
A prime contract (or change or modification to a prime contract) under
which a certificate under subsection (a)(2) is required shall contain a
provision that the price of the contract to the United States,
including profit or fee, shall be adjusted to exclude any significant
amount by which it may be determined by the agency head that such price
was increased because the contractor (or any subcontractor required to
make available such a certificate) submitted defective cost or pricing
data.
``(B) For the purposes of this section, defective cost or pricing
data are cost or pricing data which, as of the date of agreement on the
price of the contract (or another date agreed upon between the
parties), were inaccurate, incomplete, or noncurrent. If for purposes
of the preceding sentence the parties agree upon a date other than the
date of agreement on the price of the contract, the date agreed upon by
the parties shall be as close to the date of agreement on the price of
the contract as is practicable.
``(2) In determining for purposes of a contract price adjustment
under a contract provision required by paragraph (1) whether, and to
what extent, a contract price was increased because the contractor (or
a subcontractor) submitted defective cost or pricing data, it shall be
a defense that the United States did not rely on the defective data
submitted by the contractor or subcontractor.
``(3) It is not a defense to an adjustment of the price of a
contract under a contract provision required by paragraph (1) that--
``(A) the price of the contract would not have been
modified even if accurate, complete, and current cost or
pricing data had been submitted by the contractor or
subcontractor because the contractor or subcontractor--
``(i) was the sole source of the property or
services procured; or
``(ii) otherwise was in a superior bargaining
position with respect to the property or services
procured;
``(B) the contracting officer should have known that the
cost and pricing data in issue were defective even though the
contractor or subcontractor took no affirmative action to bring
the character of the data to the attention of the contracting
officer;
``(C) the contract was based on an agreement between the
contractor and the United States about the total cost of the
contract and there was no agreement about the cost of each item
procured under such contract; or
``(D) the prime contractor or subcontractor did not submit
a certification of cost and pricing data relating to the
contract as required under subsection (a)(2).
``(4)(A) A contractor shall be allowed to offset an amount against
the amount of a contract price adjustment under a contract provision
required by paragraph (1) if--
``(i) the contractor certifies to the contracting officer
(or to a designated representative of the contracting officer)
that, to the best of the contractor's knowledge and belief, the
contractor is entitled to the offset; and
``(ii) the contractor proves that the cost or pricing data
were available before the date of agreement on the price of the
contract (or price of the modification), or, if applicable
consistent with paragraph (1)(B), another date agreed upon
between the parties, and that the data were not submitted as
specified in subsection (a)(3) before such date.
``(B) A contractor shall not be allowed to offset an amount
otherwise authorized to be offset under subparagraph (A) if--
``(i) the certification under subsection (a)(2) with
respect to the cost or pricing data involved was known to be
false when signed; or
``(ii) the United States proves that, had the cost or
pricing data referred to in subparagraph (A)(ii) been submitted
to the United States before the date of agreement on the price
of the contract (or price of the modification) or, if
applicable under paragraph (1)(B), another date agreed upon
between the parties, the submission of such cost or pricing
data would not have resulted in an increase in that price in
the amount to be offset.
``(e) Interest and Penalties for Certain Overpayments.--(1) If the
United States makes an overpayment to a contractor under a contract
with an executive agency subject to this section and the overpayment
was due to the submission by the contractor of defective cost or
pricing data, the contractor shall be liable to the United States--
``(A) for interest on the amount of such overpayment, to be
computed--
``(i) for the period beginning on the date the
overpayment was made to the contractor and ending on
the date the contractor repays the amount of such
overpayment to the United States; and
``(ii) at the current rate prescribed by the
Secretary of the Treasury under section 6621 of the
Internal Revenue Code of 1986; and
``(B) if the submission of such defective data was a
knowing submission, for an additional amount equal to the
amount of the overpayment.
``(2) Any liability under this subsection of a contractor that
submits cost or pricing data but refuses to submit the certification
required by subsection (a)(2) with respect to the cost or pricing data
shall not be affected by the refusal to submit such certification.
``(f) Right of United States To Examine Contractor Records.--For
the purpose of evaluating the accuracy, completeness, and currency of
cost or pricing data required to be submitted by this section, the head
of an agency shall have the rights provided by section 304C(a)(2).
``(g) Cost or Pricing Data Defined.--In this section, the term
`cost or pricing data' means all facts that, as of the date of
agreement on the price of a contract (or the price of a contract
modification) or, if applicable consistent with subsection (d)(1)(B),
another date agreed upon between the parties, a prudent buyer or seller
would reasonably expect to affect price negotiations significantly.
Such terms does not include information that is judgmental, but does
include the factual information from which a judgment was derived.''.
SEC. 1252. REPEAL OF OBSOLETE PROVISION.
Section 303E of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253e) is repealed.
Subtitle C--Research and Development
SEC. 1301. COOPERATIVE AGREEMENTS FOR BASIC, APPLIED, AND ADVANCED
RESEARCH.
Title III of the Federal Property and Administrative Service Act of
1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the
following new section:
``SEC. 311. COOPERATIVE AGREEMENTS FOR BASIC, APPLIED, AND ADVANCED
RESEARCH.
``(a) An executive agency, in carrying out basic, applied, and
advanced research projects, may enter into cooperative agreements and
other transactions with any person, any agency or instrumentality of
the United States, any unit of State or local government, any
educational institution, and any other entity.
``(b)(1) Cooperative agreements and other transactions entered into
under subsection (a) may include a clause that requires a person or
other entity to make payments to any department or agency of the
Federal Government as a condition of receiving support under the
agreement or other transaction.
``(2) The amount of any payment received by the Federal Government
pursuant to a requirement imposed under paragraph (1) may be credited,
to the extent authorized by an agency head, to the appropriate account
established under subsection (c). Amounts so credited shall be merged
with other funds in the account and shall be available for the same
purposes and the same period for which other funds in such account are
available.
``(c) The authority provided under subsection (a) may be exercised
without regard to section 3324 of title 31, United States Code.
``(d) The head of the executive agency shall ensure that--
``(1) to the maximum extent practicable, a cooperative
agreement or other transaction under this section does not
provide for research that duplicates research being conducted
under existing programs carried out by the executive agency;
``(2) to the extent the agency head determines practicable,
the funds provided by the Government under the cooperative
agreement or other transaction do not exceed the total amount
provided by other parties to the cooperative agreement or other
transaction; and
``(3) the authority under this section is used only when
the use of standard contracts or grants is not feasible or
appropriate.
``(e) There is hereby established on the books of the Treasury
separate accounts for each executive agency for support of advanced
research projects provided for in cooperative agreements and other
transactions entered into under subsection (a). Funds in those accounts
shall be available for the payment of such support.
``(f) An executive agency, in carrying out research projects, may
permit the director of any federally funded research and development
center to enter into cooperative research and development agreements
with any person, any agency or instrumentality of the United States,
any unit of State or local government, and any other entity under the
authority granted by section 11 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3710a). Technology may be transferred
to a non-Federal party to such an agreement consistent with the
provisions of sections 10 and 11 of such Act (15 U.S.C. 3710,
3710a).''.
SEC. 1302. COMPETITION REQUIREMENT FOR AWARDS OF GRANTS AND CONTRACTS
TO COLLEGES AND UNIVERSITIES.
Subsections (a) and (b) of section 2361 of title 10, United States
Code, are amended by inserting ``or nonprofit organization other than a
federally funded research and development center (FFRDC)'' after
``college or university'' each place it appears.
Subtitle D--Procurement Protests
PART I--PROTESTS TO THE COMPTROLLER GENERAL
SEC. 1401. REVIEW OF PROTESTS AND EFFECT ON CONTRACTS PENDING DECISION.
(a) Clarification of Period for Certain Action.--Paragraph (3) of
section 3553(c) of title 31, United States Code, is amended by striking
out ``thereafter'' and inserting in lieu thereof ``after the making of
such finding''.
(b) Suspension of Performance.--Subsection (d) of such section is
amended to read as follows:
``(d) Authorization and Suspension of Performance.--
``(1) Authorization required.--A contractor awarded a
Federal agency contract may not begin performance of the
contract or engage in any related activities that result in
obligations being incurred by the United States until receipt
of an authorization to proceed with performance of the contract
from the contracting officer responsible for the award of the
contract.
``(2) Prohibition of authorization under certain
conditions.--A contracting officer may not authorize a
contractor to proceed with performance of the contract if--
``(A) a protest is likely to be filed; and
``(B) the immediate performance of the contract is
not in the best interests of the United States.
``(3) Suspension during period when protest is pending.--
(A) If the Federal agency awarding the contract receives notice
of a protest in accordance with this section during the period
described in subparagraph (B)--
``(i) the contracting officer may not authorize
performance of the contract to begin while the protest
is pending; and
``(ii) if contract performance was authorized in
accordance with paragraph (2) before receipt of the
notice, the contracting officer shall immediately
direct the contractor to cease performance under the
contract and to suspend any related activities that may
result in additional obligations being incurred by the
United States under that contract.
``(B) The period referred to in subparagraph (A), with
respect to a contract, is the period beginning on the date on
which the contract is awarded and ending on the later of--
``(i) the date that is 8 working days after such
date of contract award; or
``(ii) in the case of a procurement with respect to
which an unsuccessful offeror has requested a
debriefing in accordance with section 2305(b)(5) of
title 10 or section 303B(e) of the Federal Property and
Administrative Services Act of 1949, as applicable, the
date that is 5 working days after the date on which the
Federal agency debriefs the unsuccessful offeror.
``(C) Performance and related activities suspended pursuant
to subparagraph (A)(ii) by reason of a protest may not be
resumed while the protest is pending.
``(D) The head of the contracting activity may authorize
the performance of the contract (notwithstanding a protest of
which the Federal agency has notice under this section)--
``(i) upon a written finding--
``(I) that performance of the contract is
in the best interests of the United States; or
``(II) that urgent and compelling
circumstances that significantly affect
interests of the United States will not permit
waiting for the decision of the Comptroller
General concerning the protest; and
``(ii) after the Comptroller General is notified of
that finding.''.
SEC. 1402. DECISIONS ON PROTESTS.
(a) Period for Resolution of Amendments to Protests.--Section
3554(a) of title 31, United States Code, is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph (3):
``(3) An amendment to a protest that adds a new ground of protest,
if timely raised, should be resolved, to the maximum extent
practicable, within the time limit established under paragraph (1) of
this subsection for final decision of the initial protest. If an
amended protest cannot be resolved within such time limit, the
Comptroller General may resolve the amended protest through the express
option under paragraph (2) of this subsection.''.
(b) GAO Recommendations on Protests.--
(1) Implementation of recommendations.--Section 3554 of
title 31, United States Code, is amended--
(A) in subsection (b), by adding at the end the
following new paragraph:
``(3) If the Federal agency fails to implement fully the
recommendations of the Comptroller General under this subsection with
respect to a solicitation for a contract or an award or proposed award
of a contract within 60 days after receiving the recommendations, the
head of the contracting activity responsible for that contract shall
report such failure to the Comptroller General not later than 5 working
days after the end of such 60-day period.'';
(B) by striking out subsection (c) and inserting in
lieu thereof the following:
``(c)(1) If the Comptroller General determines that a solicitation
for a contract or a proposed award or the award of a contract does not
comply with a statute or regulation, the Comptroller General may
recommend that the Federal agency conducting the procurement pay to an
appropriate interested party the costs of--
``(A) filing and pursuing the protest, including reasonable
attorney's fees and consultant and expert witness fees; and
``(B) bid and proposal preparation.
``(2) If the Comptroller General recommends under paragraph (1)
that a Federal agency pay costs to an interested party, the Federal
agency shall--
``(A) pay the costs promptly out of funds available to or
for the use of the Federal agency; or
``(B) if the Federal agency does not make such payment,
promptly report to the Comptroller General the reasons for the
failure to follow the Comptroller General's recommendation.
``(3) If the Comptroller General recommends under paragraph (1)
that a Federal agency pay costs to an interested party, the Federal
agency and the interested party shall attempt to reach an agreement on
the amount of the costs to be paid. If the Federal agency and the
interested party are unable to agree on the amount to be paid, the
Comptroller General may, upon the request of the interested party,
recommend to the Federal agency the amount of the costs that the
Federal agency should pay.''; and
(C) by striking out subsection (e) and inserting in
lieu thereof the following:
``(e)(1) The Comptroller General shall report promptly to the
Committee on Governmental Affairs and the Committee on Appropriations
of the Senate and to the Committee on Government Operations and the
Committee on Appropriations of the House of Representatives any case in
which a Federal agency fails to implement fully a recommendation of the
Comptroller General under subsection (b) or (c). The report shall
include--
``(A) a comprehensive review of the pertinent procurement,
including the circumstances of the failure of the Federal
agency to implement a recommendation of the Comptroller
General; and
``(B) a recommendation regarding whether, in order to
correct an inequity or to preserve the integrity of the
procurement process, the Congress should consider--
``(i) private relief legislation;
``(ii) further investigation by the Congress; or
``(iii) other action.
``(2) Not later than January 31 of each year, the Comptroller
General shall transmit to the Congress a report containing a summary of
each instance in which a Federal agency did not fully implement a
recommendation of the Comptroller General under subsection (b) or (c)
during the preceding year. The report shall also describe each instance
in which a final decision in a protest was not rendered within 125 days
after the date the protest is submitted to the Comptroller General.''.
(2) Requirement for payment in accordance with prior gao
determinations.--Amounts to which the Comptroller General
declared an interested party to be entitled under section 3554
of title 31, United States Code, as in effect immediately
before the enactment of this Act, shall, if not paid or
otherwise satisfied by the Federal agency concerned before the
date of the enactment of this Act, be paid out of funds
available to or for the use of the Federal agency.
(c) Recovery of Costs for Frivolous Protests.--Such section is
further amended by adding at the end the following new subsection:
``(f) If the Comptroller General expressly finds that a protest or
a portion of a protest is frivolous or has not been brought or pursued
in good faith, the Comptroller may recommend that the protester or
other interested party who joins the protest be liable to the United
States for payment of all or that portion of the United States costs,
for which such a finding is made, of reviewing the protest, including
the fees and other expenses (as defined in section 2412(d)(2)(A) of
title 28) incurred by the United States in defending the protest. The
Federal Acquisition Regulation shall provide guidance under which the
head of an agency may initiate action to obtain such costs, unless (A)
special circumstances would make such payment unjust, or (B) the
protester obtains documents or other information for the first time,
after the protest is filed with the Comptroller General, which
establishes that the protest or a portion is frivolous or has not been
brought in good faith and the protester then promptly withdraws the
protest or portion of the protest.''.
(d) Restriction on Access to Certain Information.--Section 3553(f)
of title 31, United States Code, is amended--
(1) by inserting ``(1)'' after ``(f)''; and
(2) by adding at the end the following:
``(2)(A) The Comptroller General may issue protective orders which
establish terms, conditions, and restrictions for the provision of any
document to a person under paragraph (1), that prohibit or restrict the
disclosure by the person of information described in subparagraph (C)
that is contained in such a document.
``(B) The penalties specified under section 27(i) of the Office of
Federal Procurement Policy Act shall apply to the disclosure of
information described in subparagraph (C) in violation of a term,
condition, or restriction in a protective order under this paragraph by
a person that is subject to the protective order.
``(C) Information referred to in subparagraphs (A) and (B) is
procurement sensitive information, trade secrets, or other proprietary
or confidential research, development, or commercial information.
``(D) A protective order under this paragraph shall not be
considered to authorize the withholding of any document or information
from the Congress or an executive agency.''.
SEC. 1403. REGULATIONS.
(a) Computation of Periods.--Section 3555 of title 31, United
States Code, is amended--
(1) by redesignating subsection (b) as subsection (d); and
(2) by inserting after subsection (a) the following new
subsection (b):
``(b) The procedures shall provide that, in the computation of any
period described in this subchapter--
``(1) the day of the act, event, or default from which the
designated period of time begins to run not be included; and
``(2) the last day after such act, event, or default be
included, unless--
``(A) such last day is a Saturday, a Sunday, or a
legal holiday; or
``(B) in the case of a filing of a paper at the
General Accounting Office or a Federal agency, such
last day is a day on which weather or other conditions
make the General Accounting Office or Federal agency
inaccessible, in which event the next day that is not a
Saturday, Sunday, or legal holiday shall be
included.''.
(b) Electronic Filings and Disseminations.--Such section, as
amended by subsection (a), is further amended by inserting after
subsection (b) the following new subsection:
``(c) The Comptroller General may prescribe procedures for the
electronic filing and dissemination of documents and information
required under this subchapter. In prescribing such procedures, the
Comptroller General shall consider the ability of all parties to
achieve electronic access to such documents and records.''.
(c) Repeal of Obsolete Deadline.--Subsection (a) of such section is
amended by striking out ``Not later than January 15, 1985, the'' and
inserting in lieu thereof ``The''.
PART II--PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING
SEC. 1431. PERIODS FOR CERTAIN ACTIONS.
(a) Suspension of Procurement Authority.--(1) Paragraph (2)(B) of
section 111(f) of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 759(f)) is amended--
(A) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively;
(B) by inserting ``(i)'' after ``(B)''; and
(C) by adding at the end the following:
``(ii) A suspension under this subparagraph shall not preclude the
Federal agency concerned from continuing the procurement process up to
but not including award of the contract if the Board determines such
action is in the best interests of the United States.''.
(2) Paragraph (3) of such section is amended by striking out
subparagraph (A) and inserting in lieu thereof the following:
``(A)(i) If, with respect to an award of a contract, the board
receives notice of a protest under this subsection within the period
described in clause (ii), the board shall, at the request of an
interested party, hold a hearing to determine whether the board should
suspend the procurement authority of the Administrator or the
Administrator's delegation of procurement authority for the protested
procurement on an interim basis until the board can decide the protest.
``(ii) The period referred to in clause (i) is the period beginning
on the date on which the contract is awarded and ending on the later
of--
``(I) the date that is 8 working days after such contract
award date; or
``(II) in the case of a procurement with respect to which
an unsuccessful offeror has requested a debriefing in
accordance with section 303B(e), the date that is 5 working
days after the date on which the Federal agency debriefs the
unsuccessful offeror.
``(iii) The board shall hold the requested hearing within 7 working
days after the date of the filing of the protest.''.
(b) Resolution of Amendments to Protests.--Paragraph (4)(B) of such
section is amended by adding at the end the following: ``An amendment
which adds a new ground of protest should be resolved, to the maximum
extent practicable, within the time limits established for resolution
of the initial protest.''.
SEC. 1432. DISMISSALS OF FRIVOLOUS PROTESTS AND RECOVERY OF COSTS.
Section 111(f)(4) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(f)(4)) is amended by striking out
subparagraph (C) and inserting in lieu thereof the following new
subparagraphs:
``(C) The board may dismiss a protest that the board determines--
``(i) is frivolous;
``(ii) has been brought in bad faith; or
``(iii) does not state on its face a valid basis for
protest.
``(D) If the board makes a determination under subparagraph (C),
the board may impose appropriate sanctions. Such sanctions may include
imposition of liability on the protester, or other interested party who
joins the protest, for payment to the United States of all or that
portion of the United States costs, for which such a finding is made,
of reviewing the protest, including the fees and other expenses (as
defined in section 2412(d)(2)(A) of title 28) incurred by the United
States in defending the protest. The Federal Acquisition Regulation
shall provide guidance under which the head of an agency may initiate
action to obtain such costs, unless (i) special circumstances would
make such payment unjust, or (ii) the protester obtains documents or
other information for the first time, after the protest is filed with
the board, which establishes that the protest or a portion is frivolous
or has not been brought in good faith and the protester then promptly
withdraws the protest or portion of the protest.''.
SEC. 1433. AWARD OF COSTS.
Section 111(f)(5) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(f)(5)) is amended by striking out
subparagraph (C) and inserting in lieu thereof the following:
``(C) Whenever the board makes such a determination, it may, in
accordance with section 1304 of title 31, United States Code, further
declare an appropriate prevailing party to be entitled to the cost of
filing and pursuing the protest (including reasonable attorney's fees
and consultant and expert witness fees), and bid and proposal
preparation.''.
SEC. 1434. DISMISSAL AGREEMENTS.
Section 111(f)(5) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(f)(5)), as amended by section 1434,
is further amended by adding at the end the following new
subparagraphs:
``(D) Any agreement that provides for the dismissal of a protest
and involves a direct or indirect expenditure of appropriated funds
shall be submitted to the board and shall be made a part of the public
record (subject to any protective order considered appropriate by the
board) before dismissal of the protest. If a Federal agency is a party
to a settlement agreement, the submission of the agreement submitted to
the board shall include a memorandum, signed by the contracting officer
concerned, that describes in detail the procurement, the grounds for
protest, the Federal Government's position regarding the grounds for
protest, the terms of the settlement, and the agency's position
regarding the propriety of the award or proposed award of the contract
at issue in the protest.
``(E) Payment of amounts due from an agency under subparagraph (C)
or under the terms of a settlement agreement under subparagraph (D)
shall be made from the appropriation made by section 1304 of title 31,
United States Code, for the payment of judgments. The Federal agency
concerned shall reimburse that appropriation account out of funds
available for the procurement.''.
SEC. 1435. MATTERS TO BE COVERED IN REGULATIONS.
Section 111(f) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 759(f)) is amended--
(1) by striking out paragraph (8);
(2) by redesignating paragraph (9) as paragraph (8); and
(3) by inserting after paragraph (6) the following:
``(7)(A) The board shall adopt and issue such rules and procedures
as may be necessary to the expeditious disposition of protests filed
under the authority of this subsection.
``(B) The procedures shall provide that, in the computation of any
period described in this subsection--
``(i) the day of the act, event, or default from which the
designated period of time begins to run not be included; and
``(ii) the last day after such act, event, or default be
included, unless--
``(I) such last day is a Saturday, a Sunday, or a
legal holiday; or
``(II) in the case of a filing of a paper at the
board, such last day is a day on which weather or other
conditions make the board or Federal agency
inaccessible, in which event the next day that is not a
Saturday, Sunday, or legal holiday shall be included.
``(C) The procedures may provide for electronic filing and
dissemination of documents and information required under this
subsection and in so providing shall consider the ability of all
parties to achieve electronic access to such documents and records.''.
SEC. 1436. OVERSIGHT OF ACQUISITION OF AUTOMATIC DATA PROCESSING
EQUIPMENT BY FEDERAL AGENCIES.
Section 111 of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 759) is amended by adding at the end the following
new subsection:
``(h)(1) The Administrator shall collect and compile data regarding
the procurement of automatic data processing equipment under this
section. The data collected and compiled shall include, at a minimum,
with regard to each procurement the following:
``(A) The procuring agency.
``(B) The contractor.
``(C) The automatic data processing equipment and services
procured.
``(D) The manufacturer of the equipment procured.
``(E) The amount of the contract, to the extent that the
amount is not proprietary information.
``(F) The type of contract used.
``(G) The extent of competition for award.
``(H) Compatibility restrictions.
``(I) Significant modifications of the contract.
``(J) Contract price, to the extent that the price is not
proprietary information.
``(2) The head of each Federal agency shall report to the
Administrator in accordance with regulations issued by the
Administrator all information that the Administrator determines
necessary in order to satisfy the requirements in paragraph (1).
``(3) The Administrator shall--
``(A) carry out a systematic, periodic review of
information received under this subsection; and
``(B) use such information, as appropriate, to determine
the compliance of Federal agencies with the requirements of
this section.''.
Subtitle E--Policy, Definitions, and Other Matters
PART I--ARMED SERVICES ACQUISITIONS
SEC. 1501. CONGRESSIONAL DEFENSE PROCUREMENT POLICY.
Section 2301 of title 10, United States Code, is amended to read as
follows:
``Sec. 2301. Congressional defense procurement policy
``(a) The Congress finds that in order to ensure national defense
preparedness; conserve fiscal resources; enhance science and
technology, research and development, and production capability;
provide for continued development and preservation of an efficient and
responsive defense industrial base; and ensure the financial and
ethical integrity of defense procurement programs, it is in the
interest of the United States that property and services be acquired
for the Department of Defense in the most timely, economic, and
efficient manner consistent with achieving an optimum balance among
efficient processes, full and open access to the procurement system,
and sound implementation of socioeconomic policies. It is therefore the
policy of Congress that--
``(1) full and open competitive procedures shall be used by
the Department of Defense in accordance with the requirements
of this chapter;
``(2) to the maximum extent practicable, the Department of
Defense shall acquire commercial items to meet its needs and
shall require prime contractors and subcontractors, at all
levels, which furnish other than commercial items, to
incorporate to the maximum extent practicable commercial items
as components of items being supplied to the Department;
``(3) when commercial items and components are not
available, practicable, or cost effective, the Department of
Defense shall acquire, and shall require prime contractors and
subcontractors to incorporate, nondevelopmental items and
components to the maximum extent practicable;
``(4) property and services for the Department of Defense
may be acquired by any kind of contract, other than cost-plus-
a-percentage-of-cost contracts, but including multiyear
contracts, that will promote the interest of the United States
and will provide for appropriate allocation of risk between the
Government and the contractor with due regard to the nature of
the property or services to be acquired;
``(5) contracts, when appropriate, shall provide incentives
to contractors to improve productivity through investment in
capital facilities, equipment, flexible manufacturing
processes, and advanced and dual-use technology;
``(6) contracts for advance procurement of components,
parts, and materials necessary for manufacture or for logistics
support of a weapon system should, if practicable, be entered
into in a manner to achieve economic-lot purchases and more
efficient production rates;
``(7) procurement protests and disputes shall be fairly and
expeditiously resolved through uniform interpretation of
relevant laws and regulations;
``(8) the head of an agency shall use advance procurement
planning and market research and develop contract requirements
in such a manner as is necessary to obtain full and open
competition with due regard to the nature of the property or
services to be acquired; but may restrict competitions to
suppliers of commercial items to foster accomplishment of the
above objective; and
``(9) the head of an agency shall develop and maintain an
acquisition career management program to ensure a professional
acquisition work force in accordance with the requirements of
chapter 87 of this title.
``(b) Further, it is the policy of Congress that procurement
policies and procedures for the agencies named in section 2303 of this
title shall, in accordance with the requirements of this title--
``(1) be issued in accordance with and conform to the
requirements of sections 22 and 25 of the Office of Federal
Procurement Policy Act (41 U.S.C. 418b and 421);
``(2) promote and implement the Congressional policies in
subsection (a) of this section and section 2 of the Office of
Federal Procurement Policy Act (41 U.S.C. 401);
``(3) be implemented to support the requirements of such
agencies in time of war or national emergency as well as in
peacetime;
``(4) promote responsiveness of the procurement system to
agency needs by--
``(A) simplifying and streamlining procurement
processes; and
``(B) providing incentives to encourage contractors
to take actions and make recommendations that would
reduce the costs of property or services to be
acquired;
``(5) facilitate the acquisition of commercial items and
commercial components at or based on commercial market prices,
without requiring contractors to change their business
practices; and
``(6) promote the acquisition and use of commercial items,
commercial components, and nondevelopmental items by requiring
descriptions of agency requirements, whenever practicable, in
terms of functions to be performed or performance required.
``(c) Further, it is the policy of Congress that 20 percent of the
purchases and contracts entered into under this chapter should be
placed with small business concerns and that 5 percent of the purchases
and contracts entered into under this chapter should be placed with
concerns that are small disadvantaged businesses.
``(d) It is also the policy of Congress that qualified nonprofit
agencies for the blind or severely handicapped (as defined in section
2410d(b) of this title) shall be afforded the maximum practicable
opportunity to provide approved commodities and services (as defined in
such section) as subcontractors and suppliers under contracts awarded
by the Department of Defense.''.
SEC. 1502. DEFINITIONS.
Section 2302 of title 10, United States Code, is amended--
(1) by striking out paragraphs (3) and (7);
(2) by redesignating paragraph (6) as paragraph (12);
(3) by redesignating paragraphs (2), (4), and (5) as
paragraphs (5), (8), and (9), respectively;
(4) by inserting after paragraph (1) the following new
paragraphs:
``(2) The term `procurement' includes all stages of the
process of acquiring property or services, beginning with the
process for determining a need for property or services and
ending with contract completion and closeout.
``(3) The term `procurement system' means the integration
of the procurement process, the professional development of
procurement personnel, and the management structure for
carrying out the procurement function.
``(4) The term `standards' means the criteria for
determining the effectiveness of the procurement system by
measuring the performance of the various elements of such
system.'';
(5) by inserting after paragraph (5) (as so redesignated)
the following new paragraphs:
``(6) The term `full and open competition', when used with
respect to a procurement, means that all responsible sources
are permitted to submit sealed bids or competitive proposals on
the procurement.
``(7) The term `responsible source' means a prospective
contractor who--
``(A) has adequate financial resources to perform the
contract or the ability to obtain such resources;
``(B) is able to comply with the required or proposed
delivery or performance schedule, taking into
consideration all existing commercial and Government
business commitments;
``(C) has a satisfactory performance record;
``(D) has a satisfactory record of integrity and
business ethics;
``(E) has the necessary organization, experience,
accounting and operational controls, and technical
skills, or the ability to obtain such organization,
experience, controls, and skills;
``(F) has the necessary production, construction, and
technical equipment and facilities, or the ability to
obtain such equipment and facilities; and
``(G) is otherwise qualified and eligible, to receive
an award under applicable laws and regulations.''; and
(6) by inserting after paragraph (9) (as so redesignated)
the following new paragraphs:
``(10) The term `item', `item of supply', or `supplies'
means any individual part, component, subassembly, assembly, or
subsystem integral to a major system, and other property which
may be replaced during the service life of the system, and
includes spare parts and replenishment spare parts, but does
not include packaging or labeling associated with shipment or
identification of an `item'.
``(11) The terms `commercial item', `nondevelopmental
item', `component', and `commercial component' have the
meanings given such terms in section 2281 of this title.''.
SEC. 1503. DELEGATION OF PROCUREMENT FUNCTIONS.
(a) Consolidation of Delegation Authority.--(1) Section 2311 of
title 10, United States Code, is amended to read as follows:
``Sec. 2311. Assignment and delegation of procurement functions and
responsibilities
``(a) In General.--Except to the extent expressly prohibited by
another provision of law, the head of an agency may delegate, subject
to his direction, to any other officer or official of that agency, any
power under this chapter.
``(b) Procurements For or With Other Agencies.--Subject to
subsection (a), to facilitate the procurement of property and services
covered by this chapter by each agency named in section 2303 of this
title for any other agency, and to facilitate joint procurement by
those agencies--
``(1) the head of an agency may, within his agency,
delegate functions and assign responsibilities relating to
procurement;
``(2) the heads of two or more agencies may by agreement
delegate procurement functions and assign procurement
responsibilities from one agency to another of those agencies
or to an officer or civilian employee of another of those
agencies; and
``(3) the heads of two or more agencies may create joint or
combined offices to exercise procurement functions and
responsibilities.
``(c) Approval of Terminations and Reductions of Joint Acquisition
Programs.--(1) The Secretary of Defense shall prescribe regulations
that prohibit each military department participating in a joint
acquisition program approved by the Under Secretary of Defense for
Acquisition and Technology from terminating or substantially reducing
its participation in such program without the approval of the Under
Secretary.
``(2) The regulations shall include the following provisions:
``(A) A requirement that, before any such termination or
substantial reduction in participation is approved, the
proposed termination or reduction be reviewed by the Joint
Requirements Oversight Council of the Department of Defense.
``(B) A provision that authorizes the Under Secretary of
Defense for Acquisition and Technology to require a military
department whose participation in a joint acquisition program
has been approved for termination or substantial reduction to
continue to provide some or all of the funding necessary for
the acquisition program to be continued in an efficient
manner.''.
(2) The table of sections at the beginning of chapter 137 of such
title is amended by striking out the item relating to section 2311 and
inserting in lieu thereof the following:
``2311. Assignment and delegation of procurement functions and
responsibilities.''.
(b) Conforming Repeal.--(1) Section 2308 of title 10, United States
Code, is repealed.
(2) The table of sections at the beginning of chapter 137 of such
title is amended by striking out the item related to section 2308.
SEC. 1504. DETERMINATIONS AND DECISIONS.
Section 2310 of title 10, United States Code, is amended to read as
follows:
``Sec. 2310. Determinations and decisions
``(a) Individual or Class Determinations and Decisions
Authorized.--Determinations and decisions required to be made under
this chapter by the head of an agency may be made for an individual
purchase or contract or, except to the extent expressly prohibited by
another provision of law, for a class of purchases or contracts. Such
determinations and decisions are final.
``(b) Written Findings Required.--(1) Each determination or
decision under section 2306(g)(1), 2307(c), or 2313(c) of this title
shall be based on a written finding by the person making the
determination or decision. The finding shall set out facts and
circumstances that support the determination or decision.
``(2) Each finding referred to in paragraph (1) shall be final. The
head of the agency making such finding shall maintain a copy of the
finding for not less than 6 years after the date of the determination
or decision.''.
SEC. 1505. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL ACTIONS
(a) Clarification of Limitation.--Subsection (b) of section 2326 of
title 10, United States Code, is amended--
(1) in the subsection caption, by striking out ``and
Expenditure'';
(2) in paragraph (1)(B), by striking out ``or expended'';
(3) in paragraph (2), by striking out ``expend'' and
inserting in lieu thereof ``obligate''; and
(4) in paragraph (3)--
(A) by striking out ``expended'' and inserting in
lieu thereof ``obligated''; and
(B) by striking out ``expend'' and inserting in
lieu thereof ``obligate''.
(b) Waiver Authority.--Such subsection is further amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph (4):
``(4) The head of an agency may waive the provisions of this
subsection with respect to a contract of that agency if such head of an
agency determines that the waiver is necessary in order to support a
contingency operation.''.
(c) Inapplicability of Restrictions to Contracts Within the
Simplified Acquisition Threshold.--Subsection (g)(1)(B) of such section
is amended by striking out ``small purchase threshold'' and inserting
in lieu thereof ``simplified acquisition threshold''.
SEC. 1506. REPEAL OF REQUIREMENT RELATING TO PRODUCTION SPECIAL TOOLING
AND PRODUCTION SPECIAL TEST EQUIPMENT.
(a) Repeal.--Section 2329 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 137 of such title is amended by striking out the item related
to section 2329.
SEC. 1507. REGULATIONS FOR BIDS.
Section 2381(a) of title 10, United States Code, is amended by
striking out ``(a) The Secretary'' and all that follows through the end
of paragraph (1) and inserting in lieu thereof the following:
``(a) The Secretary of Defense or the Secretary of a military
department may--
``(1) prescribe regulations for the preparation,
submission, and opening of bids for contracts; and''.
PART II--CIVILIAN AGENCY ACQUISITIONS
SEC. 1551. DEFINITIONS.
(a) Additional Terms.--Section 309 of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 259) is amended by
adding at the end the following new subsection:
``(d) The terms `commercial item', `nondevelopmental item',
`component', and `commercial component' have the same meanings provided
such terms in section 315 of this title.''.
(b) Conforming Amendments.--Section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403) is amended--
(1) by striking out ``Act--''and inserting in lieu thereof
``Act:'';
(2) by capitalizing the initial letter in the first word of
each paragraph;
(3) by striking out the semicolon at the end of each of
paragraphs (1), (2), (3), (5), (6), (7), (8), and (9) and
inserting in lieu thereof a period; and
(4) in paragraphs (4) and (10), by striking out ``; and''
at the end and inserting in lieu thereof a period.
SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1301, is further
amended by adding at the end the following new section:
``SEC. 312. ASSIGNMENT AND DELEGATION OF PROCUREMENT FUNCTIONS AND
RESPONSIBILITIES.
``(a) In General.--Except to the extent expressly prohibited by
another provision of law, an agency head may delegate, subject to his
direction, to any other officer or official of that agency, any power
under this title.
``(b) Procurements For or With Other Agencies.--Subject to
subsection (a), to facilitate the procurement of property and services
covered by this title by each executive agency for any other executive
agency, and to facilitate joint procurement by those executive
agencies--
``(1) an agency head may, within his executive agency,
delegate functions and assign responsibilities relating to
procurement;
``(2) the heads of two or more executive agencies may by
agreement delegate procurement functions and assign procurement
responsibilities from one executive agency to another of those
executive agencies or to an officer or civilian employee of
another of those executive agencies; and
``(3) the heads of two or more executive agencies may
create joint or combined offices to exercise procurement
functions and responsibilities.''.
SEC. 1553. DETERMINATIONS AND DECISIONS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1552, is further
amended by adding at the end the following new section:
``SEC. 313. DETERMINATIONS AND DECISIONS.
``(a) Individual or Class Determinations and Decisions
Authorized.--Determinations and decisions required to be made under
this title by an agency head may be made for an individual purchase or
contract or, except to the extent expressly prohibited by another
provision of law, for a class of purchases or contracts. Such
determinations and decisions are final.
``(b) Written Findings Required.--(1) Each determination under
section 305(c) shall be based on a written finding by the person making
the determination or decision. The finding shall set out facts and
circumstances that support the determination or decision.
``(2) Each finding referred to in paragraph (1) shall be final. The
agency head making such finding shall maintain a copy of the finding
for not less 6 years after the date of the determination or
decision.''.
SEC. 1554. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL ACTIONS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1553, is further
amended by adding at the end the following new section:
``SEC. 314. UNDEFINITIZED CONTRACTUAL ACTIONS: RESTRICTIONS.
``(a) In General.--An agency head may not enter into an
undefinitized contractual action unless the request to the agency head
for authorization of the contractual action includes a description of
the anticipated effect on requirements of the executive agency
concerned if a delay is incurred for purposes of determining
contractual terms, specifications, and price before performance is
begun under the contractual action.
``(b) Limitations on Obligations of Funds.--(1) A contracting
officer of an executive agency may not enter into an undefinitized
contractual action unless the contractual action provides for agreement
upon contractual terms, specifications, and price by the earlier of--
``(A) the end of the 180-day period beginning on the date
on which the contractor submits a qualifying proposal (as
defined in subsection (f)) to definitize the contractual terms,
specifications, and price; or
``(B) the date on which the amount of funds obligated under
the contractual action is equal to more than 50 percent of the
negotiated overall ceiling price for the contractual action.
``(2) Except as provided in paragraph (3), the contracting officer
for an undefinitized contractual action may not obligate with respect
to such contractual action an amount that is equal to more than 50
percent of the negotiated overall ceiling price until the contractual
terms, specifications, and price are definitized for such contractual
action.
``(3) If a contractor submits a qualifying proposal (as defined in
subsection (f)) to definitize an undefinitized contractual action
before an amount equal to more than 50 percent of the negotiated
overall ceiling price is obligated on such action, the contracting
officer for such action may not obligate with respect to such
contractual action an amount that is equal to more than 75 percent of
the negotiated overall ceiling price until the contractual terms,
specifications, and price are definitized for such contractual action.
``(4) This subsection does not apply to an undefinitized
contractual action for the purchase of initial spares.
``(c) Inclusion of Non-Urgent Requirements.--Requirements for spare
parts and support equipment that are not needed on an urgent basis may
not be included in an undefinitized contractual action for spare parts
and support equipment that are needed on an urgent basis unless the
agency head approves such inclusion as being--
``(1) good business practice; and
``(2) in the best interests of the United States.
``(d) Modification of Scope.--The scope of an undefinitized
contractual action under which performance has begun may not be
modified unless the agency head approves such modification as being--
``(1) good business practice; and
``(2) in the best interests of the United States.
``(e) Allowable Profit.--An agency head shall ensure that the
profit allowed on an undefinitized contractual action for which the
final price is negotiated after a substantial portion of the
performance required is completed reflects--
``(1) the possible reduced cost risk of the contractor with
respect to costs incurred during performance of the contract
before the final price is negotiated; and
``(2) the reduced cost risk of the contractor with respect
to costs incurred during performance of the remaining portion
of the contract.
``(f) Definitions.--In this section:
``(1) The term `undefinitized contractual action' means a
new procurement action entered into by an agency head for which
the contractual terms, specifications, or price are not agreed
upon before performance is begun under the action. Such term
does not include contractual actions with respect to the
following:
``(A) Purchases in an amount not in excess of the
amount of the simplified acquisition threshold.
``(B) Congressionally mandated long-lead
procurement contracts.
``(2) The term `qualifying proposal' means a proposal that
contains sufficient information to enable the agency head
concerned to conduct complete and meaningful audits of the
information contained in the proposal and of any other
information that the agency head is entitled to review in
connection with the contract, as determined by the contracting
officer.''.
TITLE II--CONTRACT ADMINISTRATION
Subtitle A--Contract Payment
PART I--ARMED SERVICES ACQUISITIONS
SEC. 2001. CONTRACT FINANCING.
(a) Reorganization of Principal Authority Provision.--Section 2307
of title 10, United States Code, is amended--
(1) by striking out the section heading and inserting in
lieu thereof the following:
``Sec. 2307. Contract financing'';
(2) by inserting ``Payment Authority.--'' after ``(a)'' in
subsection (a);
(3) by inserting ``Payment Amount.--'' after ``(b)'' in
subsection (b);
(4) by inserting ``Security for Advance Payments.--'' after
``(c)'' in subsection (c);
(5) by inserting ``Conditions for Progress Payments.--''
after ``(d)'' in subsection (d)''; and
(6) by striking out ``(e)(1) In any case'' and inserting in
lieu thereof ``(g) Action in Case of Fraud.--(1) In any case''.
(b) Terminology Correction.--Such section is further amended in
subsection (a)(2) by striking out ``bid''.
(c) Effective Date of Lien Related to Advance Payments.--Such
section is further amended in subsection (c) by inserting before the
period at the end of the third sentence the following: ``and is
effective immediately upon the first advancement of funds without
filing, notice, or any other action by the United States''.
(d) Conditions for Progress Payments.--Such section is further
amended in subsection (d)--
(1) in the first sentence of paragraph (1), by striking out
``work, which'' and all that follows through ``accomplished''
and inserting in lieu thereof ``work accomplished that meets
standards established under the contract''; and
(2) by striking out paragraph (3) and inserting in lieu
thereof the following:
``(3) This subsection applies to a contract for an amount equal to
or greater than the simplified acquisition threshold.''.
(e) Conditions for Payments for Commercial Items.--Such section is
further amended by inserting after subsection (d) the following new
subsection (e):
``(e) Conditions for Payments for Commercial Items.--(1) Payments
under subsection (a) for commercial items, as that term is defined in
section 2281 of this title, may be made under such terms and conditions
as the head of the agency determines are appropriate or customary in
the commercial marketplace. The head of the agency shall obtain
adequate security for such payments. If the security is in the form of
a lien in favor of the United States, such lien is paramount to all
other liens and is effective immediately upon the first payment,
without filing, notice, or other action by the United States.
``(2) Advance payments made under subsection (a) for commercial
items may include payments, in a total amount of not more than 15
percent of the contract price, in advance of any performance of work
under the contract.
``(3) The conditions of subsections (c) and (d) do not apply to
payments made for commercial items in accordance with this
subsection.''.
(f) Navy Contracts.--Such section is further amended by inserting
after subsection (e) the following new subsection (f):
``(f) Certain Navy Contracts.--(1) The Secretary of the Navy shall
provide that the rate for progress payments on any contract awarded by
the Secretary for repair, maintenance, or overhaul of a naval vessel
shall be not less than--
``(A) 95 percent, in the case of firms considered to be
small businesses; and
``(B) 90 percent, in the case of all other firms.
``(2) The Secretary of the Navy may advance to private salvage
companies such funds as the Secretary considers necessary to provide
for the immediate financing of salvage operations. Advances under this
paragraph shall be made on terms that the Secretary considers adequate
for the protection of the United States.
``(3) The Secretary of the Navy shall ensure that, when partial,
progress, or other payments are made under a contract for construction
or conversion of a naval vessel, the United States is secured by a lien
upon work in progress and on property acquired for performance of the
contract on account of all payments so made. The lien is paramount to
all other liens.''.
(g) Clerical Amendment.--The table of sections at the beginning of
chapter 137 of title 10, United States Code, is amended by striking out
the item relating to section 2307 and inserting in lieu thereof the
following:
``2307. Contract financing.''.
(h) Repeal of Superseded Provisions.--
(1) Progress payments under certain navy contracts.--
(A) Repeal.--Section 7312 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 633 of such title is amended
by striking out the item relating to section 7312.
(2) Advancement of payments for navy salvage operations.--
(A) Repeal.--Section 7364 of such title is
repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 637 of such title is amended
by striking out the item relating to section 7364.
(3) Partial payments under navy contracts--
(A) Repeal.--Section 7521 of such title is
repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 645 of such title is amended
by striking out the item relating to section 7521.
(4) Navy research contracts.--Section 7522 of title 10,
United States Code, is amended--
(A) by striking out subsection (b); and
(B) by redesignating subsection (c) as subsection
(b).
SEC. 2002. REPEAL OF VOUCHERING PROCEDURES SECTION.
(a) Repeal.--Section 2355 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 139 of such title is amended by striking out the item relating
to section 2355.
PART II--CIVILIAN AGENCY ACQUISITIONS
SEC. 2051. CONTRACT FINANCING.
(a) Reorganization of Principal Authority Provision.--Section 305
of the Federal Property and Administrative Services Act of 1949 (41
U.S.C. 255) is amended--
(1) by striking out the section heading and the section
designation and inserting in lieu thereof the following:
``SEC. 305. CONTRACT FINANCING.'';
(2) by inserting ``Payment Authority.--'' after ``(a)'' in
subsection (a);
(3) by inserting ``Payment Amount.--'' after ``(b)'' in
subsection (b); and
(4) by inserting ``Security for Advance Payments.--'' after
``(c)'' in subsection (c).
(b) Terminology Correction.--Such section is further amended in
subsection (a)(2) by striking out ``bid''.
(c) Effective Date of Lien Related to Advance Payments.--Such
section is further amended in subsection (c) by inserting before the
period at the end of the third sentence the following: ``and is
effective immediately upon the first advancement of funds without
filing, notice, or any other action by the United States''.
(d) Revision of Civilian Agency Provision To Ensure Uniform
Requirements for Progress Payments.--
(1) In general.--Such section is further amended by adding
at the end the following new subsections:
``(d) Conditions for Progress Payments.--(1) The agency head shall
ensure that any payment for work in progress (including materials,
labor, and other items) under a contract of an executive agency that
provides for such payments is commensurate with the work accomplished
that meets standards established under the contract. The contractor
shall provide such information and evidence as the agency head
determines necessary to permit the agency head to carry out the
preceding sentence.
``(2) The agency head shall ensure that progress payments referred
to in paragraph (1) are not made for more than 80 percent of the work
accomplished under the contract so long as the agency head has not made
the contractual terms, specifications, and price definite.
``(3) This subsection applies to a contract for an amount equal to
or greater than the simplified acquisition threshold.
``(e) Conditions for Payments for Commercial Items.--(1) Payments
under subsection (a) for commercial items, as that term is defined in
section 315 of this title, may be made under such terms and conditions
as the head of the agency determines are appropriate or customary in
the commercial marketplace. The head of the agency shall obtain
adequate security for such payments. If the security is in the form of
a lien in favor of the United States, such lien is paramount to all
other liens and is effective immediately upon the first payment,
without filing, notice, or other action by the United States.
``(2) Advance payments made under subsection (a) for commercial
items may include payments, in a total amount of not more than 15
percent of the contract price, in advance of any performance of work
under the contract.
``(3) The conditions of subsections (c) and (d) do not apply to
payments made for commercial items in accordance with this subsection.
``(f) Action in Case of Fraud.--(1) In any case in which the remedy
coordination official of an executive agency finds that there is
substantial evidence that the request of a contractor for advance,
partial, or progress payment under a contract awarded by that executive
agency is based on fraud, the remedy coordination official shall
recommend that the agency head reduce or suspend further payments to
such contractor.
``(2) An agency head receiving a recommendation under paragraph (1)
in the case of a contractor's request for payment under a contract
shall determine whether there is substantial evidence that the request
is based on fraud. Upon making such a determination, the agency head
may reduce or suspend further payments to the contractor under such
contract.
``(3) The extent of any reduction or suspension of payments by an
agency head under paragraph (2) on the basis of fraud shall be
reasonably commensurate with the anticipated loss to the United States
resulting from the fraud.
``(4) A written justification for each decision of the agency head
whether to reduce or suspend payments under paragraph (2), and for each
recommendation received by the agency head in connection with such
decision, shall be prepared and be retained in the files of the
executive agency.
``(5) Each agency head shall prescribe procedures to ensure that,
before the agency head decides to reduce or suspend payments in the
case of a contractor under paragraph (2), the contractor is afforded
notice of the proposed reduction or suspension and an opportunity to
submit matters to the head of the agency in response to such proposed
reduction or suspension.
``(6) Not later than 180 days after the date on which an agency
head reduces or suspends payments to a contractor under paragraph (2),
the remedy coordination official of the executive agency shall--
``(A) review the determination of fraud on which the
reduction or suspension is based; and
``(B) transmit a recommendation to the agency head whether
the suspension or reduction should continue.
``(7) Each agency head who receives recommendations made by a
remedy coordination official of the executive agency to reduce or
suspend payments under paragraph (2) during a fiscal year shall prepare
for such year a report that contains the recommendations, the actions
taken on the recommendations and the reasons for such actions, and an
assessment of the effects of such actions on the Federal Government.
Any such report shall be available to any Member of Congress upon
request.
``(8) An agency head may not delegate responsibilities under this
subsection to any person in a position below level IV of the Executive
Schedule.
``(9) In this subsection, the term `remedy coordination official',
with respect to an executive agency, means the person or entity in that
executive agency who coordinates within that executive agency the
administration of criminal, civil, administrative, and contractual
remedies resulting from investigations of fraud or corruption related
to procurement activities.''.
(2) Relationship to prompt payment requirements.--The
amendments made by paragraph (1) are not intended to impair or
modify procedures required by the provisions of chapter 39 of
title 31, United States Code, and the regulations issued
pursuant to such provisions of law, that relate to progress
payment requests, as such procedures are in effect on the date
of the enactment of this Act.
PART III--ACQUISITIONS GENERALLY
SEC. 2061. INTEREST PENALTY ON CONTRACT CLOSE-OUT LAG-TIME.
Section 3903(a)(1) of title 31, United States Code, is amended--
(1) by striking out ``or'' at the end of subparagraph (A);
(2) by inserting ``or'' after the semicolon at the end of
subparagraph (B); and
(3) by adding at the end the following new subparagraph:
``(C) in any case in which the Government delays
making final payment under the contract for more than
one year after the date on which the last item of
property is delivered or final performance of the
services is completed under the contract, the date on
which such last delivery is made or service
completed;''.
Subtitle B--Cost Principles
PART I--ARMED SERVICES ACQUISITIONS
SEC. 2101. ALLOWABLE CONTRACT COSTS.
(a) Comptroller General Evaluation.--Subsection (l) of section 2324
of title 10, United States Code, is amended to read as follows:
``(l) The Comptroller General shall periodically evaluate the
implementation of this section by the Secretary of Defense. Such
evaluation shall consider the extent to which--
``(1) the implementation is consistent with congressional
intent;
``(2) the implementation achieves the objective of
eliminating unallowable costs charged to covered contracts; and
``(3) the implementation (as well as the provisions of this
section and the regulations prescribed under this section)
could be improved or strengthened.''.
(b) Covered Contract Defined.--Subsection (m) of such section is
amended to read as follows:
``(m) In this section, the term `covered contract' means a contract
for an amount in excess of $500,000 that is entered into by the
Department of Defense, except that such term does not include a fixed-
price contract without cost incentives or any contract for the purchase
of commercial items (as defined in section 2281 of this title).''.
SEC. 2102. REPEAL OF CONTRACT PROFIT CONTROLS DURING EMERGENCY PERIODS.
(a) Repeal.--Section 2382 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 141 of such title is amended by striking out the item relating
to section 2382.
PART II--CIVILIAN AGENCY ACQUISITIONS
SEC. 2151. ALLOWABLE CONTRACT COSTS.
Section 306 of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 256) is amended to read as follows:
``SEC. 306. ALLOWABLE COSTS.
``(a) Indirect Cost That Violates a FAR Cost Principle.--The head
of an executive agency shall require that a covered contract provide
that if the contractor submits to the executive agency a proposal for
settlement of indirect costs incurred by the contractor for any period
after such costs have been accrued and if that proposal includes the
submission of a cost which is unallowable because the cost violates a
cost principle in the Federal Acquisition Regulation (referred to in
section 25(c)(1) of the Office of Federal Procurement Policy Act (41
U.S.C. 421(c)(1)) or an executive agency's supplement to the Federal
Acquisition Regulation, the cost shall be disallowed.
``(b) Penalty for Violation of Cost Principle.--(1) If the agency
head determines that a cost submitted by a contractor in its proposal
for settlement is expressly unallowable under a cost principle referred
to in subsection (a) that defines the allowability of specific selected
costs, the agency head shall assess a penalty against the contractor in
an amount equal to--
``(A) the amount of the disallowed cost allocated to
covered contracts for which a proposal for settlement of
indirect costs has been submitted; plus
``(B) interest (to be computed based on provisions in the
Federal Acquisition Regulation) to compensate the United States
for the use of any funds which a contractor has been paid in
excess of the amount to which the contractor was entitled.
``(2) If the agency head determines that a proposal for settlement
of indirect costs submitted by a contractor includes a cost determined
to be unallowable in the case of such contractor before the submission
of such proposal, the agency head shall assess a penalty against the
contractor in an amount equal to two times the amount of the disallowed
cost allocated to covered contracts for which a proposal for settlement
of indirect costs has been submitted.
``(c) Waiver of Penalty.--The Federal Acquisition Regulation shall
provide for a penalty under subsection (b) to be waived in the case of
a contractor's proposal for settlement of indirect costs when--
``(1) the contractor withdraws the proposal before the
formal initiation of an audit of the proposal by the Federal
Government and resubmits a revised proposal;
``(2) the amount of unallowable costs subject to the
penalty is insignificant; or
``(3) the contractor demonstrates, to the contracting
officer's satisfaction, that--
``(A) it has established appropriate policies and
personnel training and an internal control and review
system that provide assurances that unallowable costs
subject to penalties are precluded from being included
in the contractor's proposal for settlement of indirect
costs; and
``(B) the unallowable costs subject to the penalty
were inadvertently incorporated into the proposal.
``(d) Applicability of Contract Disputes Procedure to Disallowance
of Cost and Assessment of Penalty.--An action of an agency head under
subsection (a) or (b)--
``(1) shall be considered a final decision for the purposes
of section 6 of the Contract Disputes Act of 1978 (41 U.S.C.
605); and
``(2) is appealable in the manner provided in section 7 of
such Act.
``(e) Specific Costs Not Allowable.--(1) The following costs are
not allowable under a covered contract:
``(A) Costs of entertainment, including amusement,
diversion, and social activities, and any costs directly
associated with such costs (such as tickets to shows or sports
events, meals, lodging, rentals, transportation, and
gratuities).
``(B) Costs incurred to influence (directly or indirectly)
legislative action on any matter pending before Congress or a
State legislature.
``(C) Costs incurred in defense of any civil or criminal
fraud proceeding or similar proceeding (including filing of any
false certification) brought by the United States where the
contractor is found liable or had pleaded nolo contendere to a
charge of fraud or similar proceeding (including filing of a
false certification).
``(D) Payments of fines and penalties resulting from
violations of, or failure to comply with, Federal, State,
local, or foreign laws and regulations, except when incurred as
a result of compliance with specific terms and conditions of
the contract or specific written instructions from the
contracting officer authorizing in advance such payments in
accordance with applicable provisions of the Federal
Acquisition Regulation.
``(E) Costs of membership in any social, dining, or country
club or organization.
``(F) Costs of alcoholic beverages.
``(G) Contributions or donations, regardless of the
recipient.
``(H) Costs of advertising designed to promote the
contractor or its products.
``(I) Costs of promotional items and memorabilia, including
models, gifts, and souvenirs.
``(J) Costs for travel by commercial aircraft which exceed
the amount of the standard commercial fare.
``(K) Costs incurred in making any payment (commonly known
as a `golden parachute payment') which is--
``(i) in an amount in excess of the normal
severance pay paid by the contractor to an employee
upon termination of employment; and
``(ii) is paid to the employee contingent upon, and
following, a change in management control over, or
ownership of, the contractor or a substantial portion
of the contractor's assets.
``(L) Costs of commercial insurance that protects against
the costs of the contractor for correction of the contractor's
own defects in materials or workmanship.
``(M) Costs of severance pay paid by the contractor to
foreign nationals employed by the contractor under a service
contract performed outside the United States, to the extent
that the amount of severance pay paid in any case exceeds the
amount paid in the industry involved under the customary or
prevailing practice for firms in that industry providing
similar services in the United States, as determined under the
Federal Acquisition Regulation.
``(N) Costs of severance pay paid by the contractor to a
foreign national employed by the contractor under a service
contract performed in a foreign country if the termination of
the employment of the foreign national is the result of the
closing of, or the curtailment of activities at, a United
States facility in that country at the request of the
government of that country.
``(O) Costs incurred by a contractor in connection with any
criminal, civil, or administrative proceeding commenced by the
United States or a State, to the extent provided in subsection
(k).
``(2)(A) Pursuant to the Federal Acquisition Regulation and subject
to the availability of appropriations, the agency head, in awarding a
covered contract, may waive the application of the provisions of
paragraphs (1)(M) and (1)(N) to that contract if the agency head
determines that--
``(i) the application of such provisions to the contract
would adversely affect the continuation of a program, project,
or activity that provides significant support services for
employees of the executive agency posted outside the United
States;
``(ii) the contractor has taken (or has established plans
to take) appropriate actions within the contractor's control to
minimize the amount and number of incidents of the payment of
severance pay by the contractor to employees under the contract
who are foreign nationals; and
``(iii) the payment of severance pay is necessary in order
to comply with a law that is generally applicable to a
significant number of businesses in the country in which the
foreign national receiving the payment performed services under
the contract or is necessary to comply with a collective
bargaining agreement.
``(B) The head of the executive agency concerned shall include in
the solicitation for a covered contract a statement indicating--
``(i) that a waiver has been granted under subparagraph (A)
for the contract; or
``(ii) whether the agency head will consider granting such
a waiver, and, if the agency head will consider granting a
waiver, the criteria to be used in granting the waiver.
``(C) The agency head shall make the final determination regarding
whether to grant a waiver under subparagraph (A) with respect to a
covered contract before award of the contract.
``(3) The provisions of the Federal Acquisition Regulation
implementing this section may establish appropriate definitions,
exclusions, limitations, and qualifications.
``(f) Required Regulations.--(1) The Federal Acquisition Regulation
shall contain provisions on the allowability of contractor costs. Such
provisions shall define in detail and in specific terms those costs
which are unallowable, in whole or in part, under covered contracts.
The regulations shall, at a minimum, clarify the cost principles
applicable to contractor costs of the following:
``(A) Air shows.
``(B) Membership in civic, community, and professional
organizations.
``(C) Recruitment.
``(D) Employee morale and welfare.
``(E) Actions to influence (directly or indirectly)
executive branch action on regulatory and contract matters
(other than costs incurred in regard to contract proposals
pursuant to solicited or unsolicited bids).
``(F) Community relations.
``(G) Dining facilities.
``(H) Professional and consulting services, including legal
services.
``(I) Compensation.
``(J) Selling and marketing.
``(K) Travel.
``(L) Public relations.
``(M) Hotel and meal expenses.
``(N) Expense of corporate aircraft.
``(O) Company-furnished automobiles.
``(P) Advertising.
``(2) The Federal Acquisition Regulation shall require that a
contracting officer not resolve any questioned costs until the
contracting officer has obtained--
``(A) adequate documentation with respect to such costs;
and
``(B) the opinion of the executive agency's contract
auditor on the allowability of such costs.
``(3) The Federal Acquisition Regulation shall provide that, to the
maximum extent practicable, an executive agency's contract auditor be
present at any negotiation or meeting with the contractor regarding a
determination of the allowability of indirect costs of the contractor.
``(4) The Federal Acquisition Regulation shall require that all
categories of costs designated in the report of an executive agency's
contract auditor as questioned with respect to a proposal for
settlement be resolved in such a manner that the amount of the
individual questioned costs that are paid will be reflected in the
settlement.
``(g) Applicability of Regulations to Subcontractors.--The
regulations referred to in subsections (e) and (f)(1) shall require, to
the maximum extent practicable, that such regulations apply to all
subcontractors of a covered contract.
``(h) Contractor Certification Required.--(1) A proposal for
settlement of indirect costs applicable to a covered contract shall
include a certification by an official of the contractor that, to the
best of the certifying official's knowledge and belief, all indirect
costs included in the proposal are allowable. Any such certification
shall be in a form prescribed in the Federal Acquisition Regulation.
``(2) The agency head concerned may, in an exceptional case, waive
the requirement for certification under paragraph (1) in the case of
any contract if the agency head--
``(A) determines in such case that it would be in the
interest of the United States to waive such certification; and
``(B) states in writing the reasons for that determination
and makes such determination available to the public.
``(i) Penalties for Submission of Cost Known as Not Allowable.--The
submission to an executive agency of a proposal for settlement of costs
for any period after such costs have been accrued that includes a cost
that is expressly specified by statute or regulation as being
unallowable, with the knowledge that such cost is unallowable, shall be
subject to the provisions of section 287 of title 18, United States
Code, and section 3729 of title 31, United States Code.
``(j) Contractor To Have Burden of Proof.--In a proceeding before a
board of contract appeals, the United States Court of Federal Claims,
or any other Federal court in which the reasonableness of indirect
costs for which a contractor seeks reimbursement from the United States
is in issue, the burden of proof shall be upon the contractor to
establish that those costs are reasonable.
``(k) Proceeding Costs Not Allowable.--(1) Except as otherwise
provided in this subsection, costs incurred by a contractor in
connection with any criminal, civil, or administrative proceeding
commenced by the United States or a State are not allowable as
reimbursable costs under a covered contract if the proceeding (A)
relates to a violation of, or failure to comply with, a Federal or
State statute or regulation, and (B) results in a disposition described
in paragraph (2).
``(2) A disposition referred to in paragraph (1)(B) is any of the
following:
``(A) In the case of a criminal proceeding, a conviction
(including a conviction pursuant to a plea of nolo contendere)
by reason of the violation or failure referred to in paragraph
(1).
``(B) In the case of a civil or administrative proceeding
involving an allegation of fraud or similar misconduct, a
determination of contractor liability on the basis of the
violation or failure referred to in paragraph (1).
``(C) In the case of any civil or administrative
proceeding, the imposition of a monetary penalty by reason of
the violation or failure referred to in paragraph (1).
``(D) A final decision--
``(i) to debar or suspend the contractor,
``(ii) to rescind or void the contract, or
``(iii) to terminate the contract for default,
by reason of the violation or failure referred to in paragraph
(1).
``(E) A disposition of the proceeding by consent or
compromise if such action could have resulted in a disposition
described in subparagraph (A), (B), (C), or (D).
``(3) In the case of a proceeding referred to in paragraph (1) that
is commenced by the United States and is resolved by consent or
compromise pursuant to an agreement entered into by a contractor and
the United States, the costs incurred by the contractor in connection
with such proceeding that are otherwise not allowable as reimbursable
costs under such paragraph may be allowed to the extent specifically
provided in such agreement.
``(4) In the case of a proceeding referred to in paragraph (1) that
is commenced by a State, the agency head that awarded the covered
contract involved in the proceeding may allow the costs incurred by the
contractor in connection with such proceeding as reimbursable costs if
the agency head determines, in accordance with the Federal Acquisition
Regulation, that the costs were incurred as a result of (A) a specific
term or condition of the contract, or (B) specific written instructions
of the agency.
``(5)(A) Except as provided in subparagraph (C), costs incurred by
a contractor in connection with a criminal, civil, or administrative
proceeding commenced by the United States or a State in connection with
a covered contract may be allowed as reimbursable costs under the
contract if such costs are not disallowable under paragraph (1), but
only to the extent provided in subparagraph (B).
``(B)(i) The amount of the costs allowable under subparagraph (A)
in any case may not exceed the amount equal to 80 percent of the amount
of the costs incurred, to the extent that such costs are determined to
be otherwise allowable and allocable under the Federal Acquisition
Regulation.
``(ii) Regulations issued for the purpose of clause (i) shall
provide for appropriate consideration of the complexity of procurement
litigation, generally accepted principles governing the award of legal
fees in civil actions involving the United States as a party, and such
other factors as may be appropriate.
``(C) In the case of a proceeding referred to in subparagraph (A),
contractor costs otherwise allowable as reimbursable costs under this
paragraph are not allowable if (i) such proceeding involves the same
contractor misconduct alleged as the basis of another criminal, civil,
or administrative proceeding, and (ii) the costs of such other
proceeding are not allowable under paragraph (1).
``(6) In this subsection:
``(A) The term `proceeding' includes an investigation.
``(B) The term `costs', with respect to a proceeding--
``(i) means all costs incurred by a contractor,
whether before or after the commencement of any such
proceeding; and
``(ii) includes--
``(I) administrative and clerical expenses;
``(II) the cost of legal services,
including legal services performed by an
employee of the contractor;
``(III) the cost of the services of
accountants and consultants retained by the
contractor; and
``(IV) the pay of directors, officers, and
employees of the contractor for time devoted by
such directors, officers, and employees to such
proceeding.
``(C) The term `penalty' does not include restitution,
reimbursement, or compensatory damages.
``(l) Periodic Evaluation of Implementation.--(1) The Comptroller
General shall periodically evaluate the implementation of this section
by the heads of executive agencies. Such evaluation shall consider the
extent to which--
``(A) the implementation is consistent with congressional
intent;
``(B) the implementation achieves the objective of
eliminating unallowable costs charged to covered contracts; and
``(C) the implementation (as well as the provisions of this
section and the regulations prescribed under this section)
could be improved or strengthened.
``(2) The Comptroller General shall submit to the Committees on
Governmental Affairs and on Appropriations of the Senate and the
Committees on Government Operation and on Appropriations of the House
of Representatives a report on such evaluation not later than 180 days
after publication in the Federal Register of revisions to the Federal
Acquisition Regulation that make substantive changes in provisions of
the Federal Acquisition Regulation pertaining to allowable costs under
covered contracts.
``(m) Covered Contract Defined.--In this section, the term `covered
contract' means a contract for an amount in excess of $500,000 that is
entered into by an executive agency, except that such term does not
include a fixed-price contract without cost incentives or any contract
for the purchase of commercial items (as defined in section 315 of this
title).''.
PART III--ACQUISITIONS GENERALLY
SEC. 2161. TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS.
Section 24(a) of the Office of Federal Procurement Policy Act (41
U.S.C. 420) is amended by inserting after ``Under any contract'' the
following: ``requiring submission of cost or pricing data or the
negotiation of final indirect costs''.
Subtitle C--Audit and Access to Records
PART I--ARMED SERVICES ACQUISITIONS
SEC. 2201. CONSOLIDATION AND REVISION OF AUTHORITY TO EXAMINE RECORDS
OF CONTRACTORS.
(a) Authority.--
(1) In general.--Section 2313 of title 10, United States
Code, is amended to read as follows:
``Sec. 2313. Examination of records of contractor
``(a) Agency Authority.--The head of an agency, acting through an
authorized representative--
``(1) is entitled to inspect the plant and audit the
records of--
``(A) a contractor performing a cost-reimbursement,
incentive, time-and-materials, labor-hour, or price-
redeterminable contract, or any combination of such
contracts, made by that agency under this chapter; and
``(B) a subcontractor performing any subcontract
under such a contract or combination of contracts; and
``(2) shall, for the purpose of evaluating the accuracy,
completeness, and currency of cost or pricing data required to
be submitted pursuant to section 2306a of this title with
respect to a contract or subcontract, have the right to examine
all records of the contractor or subcontractor related to--
``(A) the proposal for the contract or subcontract;
``(B) the discussions conducted on the proposal;
``(C) pricing of the contract or subcontract; or
``(D) performance of the contract or subcontract.
``(b) Subpoena Power.--(1) The Director of the Defense Contract
Audit Agency (or any successor agency) may require by subpoena the
production of any records of a contractor that the Secretary of Defense
is authorized to audit or examine under subsection (a).
``(2) Any such subpoena, in the case of contumacy or refusal to
obey, shall be enforceable by order of an appropriate United States
district court.
``(3) The authority provided by paragraph (1) may not be
redelegated.
``(4) The Director (or any successor official) shall submit an
annual report to the Secretary of Defense on the exercise of such
authority during the preceding year and the reasons why such authority
was exercised in any instance. The Secretary shall forward a copy of
each such report to the Committees on Armed Services of the Senate and
House of Representatives.
``(c) Comptroller General Authority.--(1) Except as provided in
paragraph (2), each contract awarded after using procedures other than
sealed bid procedures shall provide that the Comptroller General and
his representatives are entitled to examine any records of the
contractor, or any of its subcontractors, that directly pertain to, and
involve transactions relating to, the contract or subcontract.
``(2) Paragraph (1) does not apply to a contract or subcontract
with a foreign contractor or foreign subcontractor if the head of the
agency concerned determines, with the concurrence of the Comptroller
General or his designee, that the application of that paragraph to the
contract or subcontract would not be in the public interest. However,
the concurrence of the Comptroller General or his designee is not
required--
``(A) where the contractor or subcontractor is a foreign
government or agency thereof or is precluded by the laws of the
country involved from making its records available for
examination; and
``(B) where the head of the agency determines, after taking
into account the price and availability of the property and
services from United States sources, that the public interest
would be best served by not applying paragraph (1).
``(d) Authority To Use Other Agency Audit for Pre-Award Audit.--In
any case in which the head of an agency proposes to examine the records
of a contractor or subcontractor related to a proposal for a contract
or subcontract (as authorized by subsection (a)(2)(A)), the head of the
agency may use the results of an audit conducted by a Federal
Government audit agency within the previous year if the contracting
officer determines that the objectives of the proposed pre-award audit
reasonably can be met by the other audit.
``(e) Limitation.--The right of the head of an agency under
subsection (a), and the right of the Comptroller General under
subsection (c), with respect to a contract or subcontract shall expire
three years after final payment under such contract or subcontract.
``(f) Inapplicability to Certain Contracts.--This section does not
apply to the following contracts:
``(1) Contracts for utility services at rates not exceeding
those established to apply uniformly to the public, plus any
applicable reasonable connection charge.
``(g) Forms of Original Record Storage.--Nothing in this section
shall be construed to preclude a contractor from duplicating or storing
original records in electronic form.
``(h) Use of Images of Original Records.--The head of an agency
shall not require a contractor or subcontractor to provide original
records in an audit carried out pursuant to this section if the
contractor or subcontractor provides photographic or electronic images
of the original records and meets the following requirements:
``(1) The contractor or subcontractor has established
procedures to ensure that the imaging process preserves the
integrity, reliability, and security of the original records.
``(2) The contractor or subcontractor maintains an
effective indexing system to permit timely and convenient
access to the imaged records.
``(3) The contractor or subcontractor retains the original
records for a minimum of one year after imaging to permit
periodic validation of the imaging systems.
``(i) Records Defined.--In this section, the term `records'
includes books, documents, accounting procedures and practices, and
other data, regardless of type and regardless of whether such items are
in written form, in the form of computer data, or in any other form.''.
(2) Clerical amendment.--The item relating to such section
in the table of sections at the beginning of chapter 137 of
title 10, United States Code, is amended to read as follows:
``2313. Examination of records of contractor.''.
(b) Repeal of Superseded Provision.--
(1) Repeal.--Section 2406 of title 10, United States Code,
is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 141 of such title is amended by striking
out the item relating to section 2406.
PART II--CIVILIAN AGENCY ACQUISITIONS
SEC. 2251. AUTHORITY TO EXAMINE RECORDS OF CONTRACTORS.
(a) Authority.--Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended
by section 1251(2), is further amended by inserting after section 304B
the following new section:
``SEC. 304C. EXAMINATION OF RECORDS OF CONTRACTOR.
``(a) Agency Authority.--The head of an executive agency, acting
through an authorized representative--
``(1) is entitled to inspect the plant and audit the
records of--
``(A) a contractor performing a cost-reimbursement,
incentive, time-and-materials, labor-hour, or price-
redeterminable contract, or any combination of such
contracts, made by that executive agency under this
title; and
``(B) a subcontractor performing any subcontract
under such a contract or combination of contracts; and
``(2) shall, for the purpose of evaluating the accuracy,
completeness, and currency of cost or pricing data required to
be submitted pursuant to section 304B with respect to a
contract or subcontract, have the right to examine all records
of the contractor or subcontractor related to--
``(A) the proposal for the contract or subcontract;
``(B) the discussions conducted on the proposal;
``(C) pricing of the contract or subcontract; or
``(D) performance of the contract or subcontract.
``(b) Comptroller General Authority.--(1) Except as provided in
paragraph (2), each contract awarded after using procedures other than
sealed bid procedures shall provide that the Comptroller General and
his representatives are entitled to examine any records of the
contractor, or any of its subcontractors, that directly pertain to, and
involve transactions relating to, the contract or subcontract.
``(2) Paragraph (1) does not apply to a contract or subcontract
with a foreign contractor or foreign subcontractor if the agency head
concerned determines, with the concurrence of the Comptroller General
or his designee, that the application of that paragraph to the contract
or subcontract would not be in the public interest. However, the
concurrence of the Comptroller General or his designee is not
required--
``(A) where the contractor or subcontractor is a foreign
government or agency thereof or is precluded by the laws of the
country involved from making its records available for
examination; and
``(B) where the agency head determines, after taking into
account the price and availability of the property and services
from United States sources, that the public interest would be
best served by not applying paragraph (1).
``(c) Authority To Use Other Agency Audit for Pre-Award Audit.--In
any case in which the head of an agency proposes to examine the records
of a contractor or subcontractor related to a proposal for a contract
or subcontract (as authorized by subsection (a)(2)(A)), the head of the
agency may use the results of an audit conducted by a Federal
Government audit agency within the previous year if the contracting
officer determines that the objectives of the proposed pre-award audit
reasonably can be met by the other audit.
``(d) Limitation.--The right of an agency head under subsection
(a), and the right of the Comptroller General under subsection (b),
with respect to a contract or subcontract shall expire three years
after final payment under such contract or subcontract.
``(e) Inapplicability to Certain Contracts.--This section does not
apply to the following contracts:
``(1) Contracts for utility services at rates not exceeding
those established to apply uniformly to the public, plus any
applicable reasonable connection charge.
``(f) Form of Original Record Storage.--Nothing in this section
shall be construed to preclude a contractor from duplicating or storing
original records in electronic form.
``(g) Use of Images of Original Records.--The head of an agency
shall not require a contractor or subcontractor to provide original
records in an audit carried out pursuant to this section if the
contractor or subcontractor provides photographic or electronic images
of the original records and meets the following requirements:
``(1) The contractor or subcontractor has established
procedures to ensure that the imaging process preserves the
integrity, reliability, and security of the original records.
``(2) The contractor or subcontractor maintains an
effective indexing system to permit timely and convenient
access to the imaged records.
``(3) The contractor or subcontractor retains the original
records for a minimum of one year after imaging to permit
periodic validation of the imaging systems.
``(h) Records Defined.--In this section, the term `records'
includes books, documents, accounting procedures and practices, and
other data, regardless of type and regardless of whether such items are
in written form, in the form of computer data, or in any other form.''.
(b) Repeal of Superseded Provision.--Section 304 of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 254) is
amended by striking out subsection (c).
Subtitle D--Cost Accounting Standards
SEC. 2301. REPEAL OF OBSOLETE DEADLINE REGARDING PROCEDURAL REGULATIONS
FOR THE COST ACCOUNTING STANDARDS BOARD.
Section 26(f)(3) of the Office of Federal Procurement Policy Act
(41 U.S.C. 422(f)(3)) is amended in the first sentence by striking out
``Not later than 180 days after the date of enactment of this section,
the Administrator'' and inserting in lieu thereof ``The
Administrator''.
Subtitle E--Administration of Contract Provisions Relating to Price,
Delivery, and Product Quality
SEC. 2401. CLARIFICATION OF PROVISION RELATING TO QUALITY CONTROL OF
CERTAIN SPARE PARTS.
The second sentence of subsection (a) of section 2383 of title 10,
United States Code, is amended to read as follows: ``In establishing
the appropriate qualification requirements, the Secretary of Defense
shall use the Department of Defense qualification requirements that
were used to qualify the original production part, unless the Secretary
determines in writing--
``(1) that there are other requirements sufficiently
similar to those requirements that should be used instead; or
``(2) that any or all such requirements are unnecessary.''.
SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.
(a) Repeal of Requirement for Report on Waivers.--Subsection (e) of
section 2403 of title 10, United States Code, is amended--
(1) by striking out ``(1)''; and
(2) by striking out paragraph (2).
(b) Provisions To Be Addressed by Regulations.--Subsection (h) of
such section is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2) The regulations shall include the following:
``(A) Guidelines for negotiating contractor guarantees that
are reasonable and cost effective, as determined on the basis
of the likelihood of defects and the estimated cost of
correcting such defects.
``(B) Procedures for administering contractor guarantees.
``(C) Guidelines for determining the cases in which it may
be appropriate to waive the requirements of this section.''.
Subtitle F--Claims and Disputes
SEC. 2501. CERTIFICATION OF CONTRACT CLAIMS.
(a) DOD Certification Requirement in Conflict With Government-Wide
Requirement.--
(1) Repeal.--Section 2410 of title 10, United States Code,
is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 141 of such title is amended by striking
out the item relating to section 2410.
(b) Repeal of Superseded Provision.--Section 813(b) of the National
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106
Stat. 2453), is repealed.
(c) Restriction on Legislative Payment of Claims.--Section 2410e of
title 10, United States Code, is amended by adding at the end the
following new subsection:
``(d) Restriction on Legislative Payment of Claims.--In the case of
a contract of an agency named in section 2303(a) of this title, no
provision of a law enacted after the date of the enactment of the
Federal Acquisition Improvement Act of 1994 that directs the payment of
a particular claim under such contract, a particular request for
equitable adjustment to any term of such contract, or a particular
request for relief under Public Law 85-804 (50 U.S.C. 1431 et seq.)
regarding such contract may be implemented unless such provision of
law--
``(1) specifically refers to this subsection; and
``(2) specifically states that this subsection does not
apply with respect to the payment directed by that provision of
law.''.
TITLE III--MAJOR SYSTEMS AND SERVICE SPECIFIC STATUTES
Subtitle A--Major Systems Statutes
SEC. 3001. WEAPON DEVELOPMENT AND PROCUREMENT SCHEDULES.
(a) Deadline and Purpose.--Subsection (a) of section 2431 of title
10, United States Code, is amended--
(1) in the first sentence--
(A) by striking out ``at the same time'' and
inserting in lieu thereof ``not later than 45 days
after''; and
(B) by striking out ``a written report'' and
inserting in lieu thereof ``budget justification
documents''; and
(2) in the second and third sentences, by striking out
``report'' and inserting in lieu thereof ``documents''.
(b) Additional Matters To Be Included.--Subsection (b) of such
section is amended--
(1) by striking out ``include--'' and inserting in lieu
thereof ``include each of the following:'';
(2) by capitalizing the first word in each of paragraphs
(1), (2), and (3);
(3) by striking out the semicolon at the end of paragraphs
(1) and (2) and inserting in lieu thereof a period;
(4) by striking out ``; and'' at the end of paragraph (3)
and inserting in lieu thereof a period; and
(5) by amending paragraph (4) to read as follows:
``(4)(A) The most efficient production rate, the most
efficient acquisition rate, and the minimum sustaining rate,
consistent with the program priority established for such
weapon system by the Secretary concerned.
``(B) In this paragraph:
``(i) The term `most efficient production rate'
means the maximum rate for each budget year at which
the weapon system can be produced with existing or
planned plant capacity and tooling, with one shift a
day running for eight hours a day and five days a week.
``(ii) The term `minimum sustaining rate' means the
production rate for each budget year that is necessary
to keep production lines open while maintaining a base
of responsive vendors and suppliers.''.
SEC. 3002. SELECTED ACQUISITION REPORT REQUIREMENT.
(a) Definition of Procurement Unit Cost.--
(1) Definition.--Paragraph (2) of section 2432(a) of title
10, United States Code, is amended--
(A) in clause (A), by striking out ``for a fiscal
year'' and all that follows through ``such program in
such fiscal year'';
(B) in clause (B), by striking out ``with such
funds during such fiscal year.'' and inserting in lieu
thereof a period; and
(C) by striking out the last sentence.
(2) Conforming amendments.--Section 2433 of such title is
amended--
(A) in subparagraph (B) of subsection (c)(1), by
striking out ``current'' before ``procurement unit
cost'';
(B) in subsection (d), by striking out ``current''
before ``procurement unit cost'' each place it appears;
and
(C) in subsection (e), by striking out ``current''
before ``procurement unit cost'' both places it
appears.
(b) Exclusion of Firm, Fixed-Price Contracts.--Subsection (a) of
section 2432 of such title is amended in paragraph (3) by inserting
before the period at the end the following: ``and that is not a firm,
fixed price contract''.
(c) Definition of Full Life-Cycle Cost.--Such subsection is further
amended in paragraph (4) by striking out ``has the meaning'' and all
that follows through the end of the paragraph and inserting in lieu
thereof the following: ``means all costs of development, procurement,
military construction, and operations and support, without regard to
funding source or management control.''.
(d) Notice of Proposed Changes in SAR.--Subsection (c) of such
section is amended in paragraph (2) by striking out the second sentence
and inserting in lieu thereof the following: ``Whenever the Secretary
of Defense proposes to make changes in the content of a Selected
Acquisition Report, the Secretary shall submit a notice of the proposed
changes to such committees. The changes shall be considered approved by
the Secretary, and may be incorporated into the report, only after the
end of the 60-day period beginning on the date on which the notice is
received by those committees.''.
(e) Elimination of Certain SAR Requirements.--Such subsection is
further amended in paragraph (3) by striking out subparagraph (C).
(f) Uniform Implementation of Life-Cycle Cost Analysis.--Such
subsection is further amended--
(1) by striking out paragraph (5); and
(2) by adding at the end of subparagraph (A) of paragraph
(3) the following: ``The Secretary of Defense shall ensure that
this subparagraph is implemented in a uniform manner, to the
extent practicable, throughout the Department of Defense.''.
(g) Deadline Revision.--Subsection (f) of such section is amended
by striking out ``60 days'' in the first sentence and inserting in lieu
thereof ``45 days''.
(h) Elimination of Preliminary Report.--Such subsection is further
amended by striking out the second sentence.
(i) Terminology Corrections.--Such section is further amended as
follows:
(1) Subsection (b)(3)(A) is amended by striking out ``full
scale development or'' in clause (i).
(2) Subsection (c)(3) is amended by striking out ``full-
scale engineering'' in subparagraph (A) and inserting in lieu
thereof ``engineering and manufacturing''.
(3) Subsection (h)(1) is amended by striking out ``full-
scale engineering'' both places it appears and inserting in
lieu thereof ``engineering and manufacturing''.
SEC. 3003. UNIT COST REPORT REQUIREMENT.
(a) Revision of Baseline Report Definitions.--
(1) Revision.--Section 2433(a) of title 10, United States
Code, is amended--
(A) in paragraph (2)--
(i) by striking out ``Baseline Selected
Acquisition Report'' and inserting in lieu
thereof ``Baseline Estimate''; and
(ii) by striking out ``Selected Acquisition
Report in which'' and all that follows through
the end of the paragraph and inserting in lieu
thereof ``cost estimate included in the
baseline description for the program under
section 2435 of this title.''; and
(B) by striking out paragraph (4).
(2) Conforming amendments.--Section 2433 of such title is
further amended--
(A) in subsection (c)(1), by striking out
``Baseline Report'' in subparagraphs (A) and (B) and
inserting in lieu thereof ``Baseline Estimate''; and
(B) in subsection (d), by striking out ``Baseline
Report'' in paragraphs (1) and (2) and inserting in
lieu thereof ``Baseline Estimate''.
(b) Contents of Unit Cost Report.--Section 2433(b) of such title is
amended in paragraph (3) by striking out ``Baseline Report was
submitted.'' and inserting in lieu thereof ``contract was entered
into.''.
(c) Elimination of Certain Unit Cost Report Requirement.--Section
2433(c) of such title, as amended by subsection (a), is further
amended--
(1) by striking out paragraph (2);
(2) by striking out ``(1)'' after ``(c)''; and
(3) by redesignating subparagraphs (A), (B), and (C) as
paragraphs (1), (2), and (3), respectively.
(d) Constant Base Year Dollars.--Section 2433(f) of such title is
amended by striking out ``include expected inflation'' and inserting in
lieu thereof ``be stated in terms of constant base year dollars (as
described in section 2430 of this title)''.
(e) Contents of SAR.--Subparagraph (I) of section 2433(g)(1) of
such title is amended to read as follows:
``(I) The type of the Baseline Estimate that was included
in the baseline description under section 2435 of this title
and the date of the Baseline Estimate.''.
SEC. 3004. REQUIREMENT FOR INDEPENDENT COST ESTIMATES AND MANPOWER
ESTIMATES BEFORE DEVELOPMENT OR PRODUCTION.
(a) Content and Submission of Estimates.--Section 2434 of title 10,
United States Code, is amended by striking out subsection (b) and
inserting in lieu thereof the following:
``(b) Regulations.--The Secretary of Defense shall prescribe
regulations governing the content and submission of the estimates
required by subsection (a). The regulations shall require--
``(1) that the independent estimate of the full life-cycle
cost of a program--
``(A) be prepared by an office or other entity that
is not directly responsible for carrying out the
development or acquisition of the program; and
``(B) include all costs of development,
procurement, military construction, and operations and
support, without regard to funding source or management
control; and
``(2) that the manpower estimate include the total
personnel required--
``(A) to operate, maintain, and support the program
upon full operational deployment; and
``(B) to train personnel to carry out the
activities referred to in subparagraph (A).''.
(b) Terminology Correction and Other Amendment.--Subsection (a) of
such section is amended--
(1) by striking out ``full-scale engineering development''
and inserting in lieu thereof ``engineering and manufacturing
development''; and
(2) by striking out ``cost of the program, together with''
and inserting in lieu thereof ``full life-cycle cost of the
program, and''.
SEC. 3005. BASELINE DESCRIPTION.
(a) In General.--Section 2435 of title 10, United States Code, is
amended to read as follows:
``Sec. 2435. Baseline description
``(a) Baseline Description Requirement.--(1) The Secretary of a
military department shall establish a baseline description for each
major defense acquisition program under the jurisdiction of such
Secretary.
``(2) The baseline shall include sufficient parameters to describe
the cost estimate (referred to as the `Baseline Estimate' in section
2433 of this title), schedule, and performance of such major defense
acquisition program.
``(3) No amount appropriated or otherwise made available to the
Department of Defense for carrying out a major defense acquisition
program may be obligated without an approved baseline description
unless such obligation is specifically approved by the Under Secretary
of Defense for Acquisition and Technology.
``(4) A baseline description for a major defense acquisition
program shall be established--
``(A) before the program enters engineering and
manufacturing development; and
``(B) before the program enters production and deployment.
``(b) Regulations.--The Secretary of Defense shall prescribe
regulations governing--
``(1) the content of baseline descriptions;
``(2) the submission of reports on deviations of a program
from the baseline description by the program manager to the
Secretary of the military department concerned and the Under
Secretary of Defense for Acquisition and Technology;
``(3) procedures for review of such deviation reports
within the Department of Defense; and
``(4) procedures for submission to, and approval by, the
Secretary of Defense of revised baseline descriptions.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 144 of such title is amended by amending the item relating to
section 2435 to read as follows:
``2435. Baseline description.''.
SEC. 3006. REPEAL OF REQUIREMENT FOR COMPETITIVE PROTOTYPING IN MAJOR
PROGRAMS.
(a) Repeal.--Section 2438 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 144 of such title is amended by striking out the item relating
to section 2438.
SEC. 3007. REPEAL OF REQUIREMENT FOR COMPETITIVE ALTERNATIVE SOURCES IN
MAJOR PROGRAMS.
(a) Repeal.--Section 2439 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 144 of such title is amended by striking out the item relating
to section 2439.
Subtitle B--Testing Statutes
SEC. 3011. AUTHORIZATION OF LESS THAN FULL-UP TESTING.
Section 2366(c) of title 10, United States Code, is amended--
(1) by redesignating paragraph (2) as paragraph (4);
(2) by designating the second sentence of paragraph (1) as
paragraph (3) and in that paragraph by striking out ``such
certification'' and inserting in lieu thereof ``certification
under paragraph (1) or (2)''; and
(3) by inserting before paragraph (3) (as so designated)
the following new paragraph:
``(2) In the case of a covered system (or covered product
improvement program for a covered system), the Secretary may waive the
application of the survivability and lethality tests of this section to
such system or program and instead allow testing of the system or
program in combat by firing munitions likely to be encountered in
combat at components, subsystems, and subassemblies, together with
performing design analyses, modeling and simulation, and analysis of
combat data, if the Secretary certifies to Congress that the
survivability and lethality testing of such system or program otherwise
required by this section would be unreasonably expensive and
impracticable.''.
SEC. 3012. LIMITATION ON QUANTITIES TO BE PROCURED FOR LOW-RATE INITIAL
PRODUCTION.
Section 2400(a) of title 10, United States Code, is amended--
(1) in paragraph (2)--
(A) by striking out ``paragraph (1)'' and inserting
in lieu thereof ``this section''; and
(B) by striking out ``full-scale engineering
development'' and inserting in lieu thereof
``engineering and manufacturing development'';
(2) by redesignating paragraph (4) as paragraph (5) and in
that paragraph by inserting after the first sentence the
following: ``If the quantity exceeds 10 percent of the total
number of articles to be produced, as determined at the
milestone II decision with respect to that system, the
Secretary shall include in the statement the reasons for such
quantity.''; and
(3) by inserting after paragraph (3) the following new
paragraph (4):
``(4) The quantity of articles of a major system that may be
procured for low-rate initial production may not be less than one
operationally configured production unit unless another quantity is
established at the milestone II decision.''.
SEC. 3013. OPERATIONAL TEST AND EVALUATION OF DEFENSE ACQUISITION
PROGRAMS.
(a) Authority To Use Different Procedures.--Section 2399(b) of
title 10, United States Code, is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new
paragraph (5):
``(5) The Secretary of Defense may, for a particular major defense
acquisition program, prescribe and apply operational test and
evaluation procedures other than those provided under subsection (a)
and paragraphs (1) through (3) of this subsection if the Secretary
transmits to Congress, before the Milestone II decision is made with
respect to that program--
``(A) a certification that such testing would be
unreasonably expensive and impracticable; and
``(B) a description of the actions taken to ensure that the
system will be operationally effective and suitable when the
system meets initial operational capability requirements.''.
(b) Cross Reference Corrections.--Section 2399 of such title is
further amended--
(1) in subsection (b)(6) (as redesignated by subsection
(a)(1)) and subsection (c)(1), by striking out ``section
138(a)(2)(B)'' and inserting in lieu thereof ``section
139(a)(2)(B)''; and
(2) in subsection (h)(1), by striking out ``section
138(a)(2)(A)'' and inserting in lieu thereof ``section
139(a)(2)(A)''.
Subtitle C--Civil Reserve Air Fleet
SEC. 3021. DEFINITION OF CONTRACTOR.
Section 9511(8) of title 10, United States Code, is amended--
(1) by striking out ``or'' at the end of clause (A); and
(2) by inserting before the period at the end the
following: ``, or (C) who owns or controls, or will own or
control, new or existing aircraft and who, by contract, commits
some or all of such aircraft to the Civil Reserve Air Fleet''.
SEC. 3022. CONSOLIDATION OF PROVISIONS RELATING TO CONTRACTUAL
COMMITMENT OF AIRCRAFT.
Chapter 931 of title 10, United States Code, is amended--
(1) in subsection (a) of section 9512, by inserting
``Authority to Contract.--'' after ``(a)'';
(2) in subsection (c) of section 9512, by striking out
``(c)'' and inserting in lieu thereof ``(d) Authority To
Contract and Pay Directly.--'';
(3) in subsection (b) of section 9512, by striking out
``(b)'' and inserting in lieu thereof ``(c) Terms and Required
Repayment.--'';
(4) by redesignating subsection (a) of section 9513 as
subsection (b) and transferring such subsection (as so
redesignated) to section 9512 and inserting such subsection
after subsection (a);
(5) by redesignating subsection (b) of section 9513 as
subsection (e) and transferring such subsection (as so
redesignated) to the end of section 9512;
(6) in subsection (b) of section 9512, as redesignated and
transferred to such section by paragraph (4)--
(A) by striking out ``under section 9512 of this
title'' and inserting in lieu thereof ``entered into
under this section'', and
(B) by inserting ``Contract Requirements.--'' after
``(b)'';
(7) in subsection (c) of section 9512, as redesignated by
paragraph (3), by striking out ``the terms required by section
9513 of this title and'';
(8) in subsection (e) of section 9512, as redesignated and
transferred to such section by paragraph (5)--
(A) by striking out ``under section 9512 of this
title'' and inserting in lieu thereof ``entered into
under this section'', and
(B) by inserting ``Commitment to Civil Reserve Air
Fleet.--'' after ``(e)''; and
(9) by striking out the heading of section 9513.
SEC. 3023. USE OF MILITARY INSTALLATIONS BY CONTRACTORS.
(a) Authority.--Chapter 931 of title 10, United States Code, as
amended by section 3022, is further amended by adding at the end the
following new section 9513:
``Sec. 9513. Use of military installations by Civil Reserve Air Fleet
contractors
``(a) Contract Authority.--(1) The Secretary of the Air Force--
``(A) may, by contract entered into with any contractor,
authorize such contractor to use one or more Air Force
installations designated by the Secretary; and
``(B) with the consent of the Secretary of another military
department, may, by contract entered into with any contractor,
authorize the contractor to use one or more installations,
designated by the Secretary of the Air Force, that is under the
jurisdiction of the Secretary of such other military
department.
``(2) The Secretary of the Air Force may include in the contract
such terms and conditions as the Secretary determines appropriate to
promote the national defense or to protect the interests of the United
States.
``(b) Purposes of Use.--A contract entered into under subsection
(a) may authorize use of a designated installation as a weather
alternate, a technical stop not involving the enplaning or deplaning of
passengers or cargo, or, in the case of an installation within the
United States, for other commercial purposes. Notwithstanding any other
provision of the law, the Secretary may establish different levels and
types of uses for different installations and may provide in contracts
under subsection (a) for different levels and types of uses by
different contractors.
``(c) Hold Harmless Requirement.--A contract entered into under
subsection (a) shall provide that the contractor agrees to indemnify
and hold harmless the Air Force (and any other armed force having
jurisdiction over any installation covered by the contract) from all
actions, suits, or claims of any sort resulting from, relating to, or
arising out of any activities conducted, or services or supplies
furnished, in connection with the contract.
``(d) Reservation of Right To Exclude Contractor.--A contract
entered into under subsection (a) shall provide that the Secretary
concerned may, without providing prior notice, deny access to an
installation designated under the contract when the Secretary
determines that it is necessary to do so in order to meet military
exigencies.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by striking out the item relating to section
9513 and inserting in lieu thereof the following:
``9513. Use of military installations by Civil Reserve Air Fleet
contractors.''.
Subtitle D--Miscellaneous
SEC. 3051. EXTENSION TO DEPARTMENT OF DEFENSE GENERALLY OF PROVISION
RELATING TO MANUFACTURE AT FACTORIES AND ARSENALS.
(a) Consolidation, Revision, and Extension to Department of Defense
of Authority.--(1) Subchapter V of chapter 148 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 2542. Factories and arsenals: manufacture at
``(a) The Secretary of Defense or the Secretary of a military
department may have supplies needed for the Department of Defense or
such military department, as the case may be, made in factories or
arsenals owned by the United States.
``(b) The Secretary of Defense or the Secretary of the military
department concerned may abolish any United States arsenal that such
Secretary considers unnecessary.''.
(2) The table of sections at the beginning of subchapter V of such
chapter is amended by adding at the end the following new item:
``2542. Factories and arsenals: manufacture at.''.
(b) Repeal of Superseded Authority.--
(1) Army authority.--
(A) Repeal.--Section 4532 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 433 of such title is amended
by striking out the item relating to section 4532.
(2) Air force authority.--
(A) Repeal.--Section 9532 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 933 of such title is amended
by striking out the item relating to section 9532.
SEC. 3052. CODIFICATION OF ACCOUNTING REQUIREMENT FOR CONTRACTED
ADVISORY AND ASSISTANCE SERVICES.
(a) Funding To Be Identified in Budget.--Section 1105 of title 31,
United States Code, is amended by adding at the end the following new
subsection:
``(g)(1) The Director of the Office of Management and Budget shall
establish the funding for consulting services for each department and
agency as a separate object class in each budget annually submitted to
the Congress under this section.
``(2) In this subsection, consulting services include--
``(A) management and professional support services;
``(B) studies, analyses, and evaluations;
``(C) engineering and technical services (excluding routine
engineering services such as automated data processing and
architect and engineering contracts); and
``(D) research and development.''.
(b) Repeal of Source Law.--Section 512 of Public Law 102-394 (106
Stat. 1826) is repealed.
(c) Repeal of Superseded Provisions.--
(1) DOD specific law.--Section 2212 of title 10, United
States Code, is repealed.
(2) Government-wide law.--Section 1114 of title 31, United
States Code, is repealed.
(3) Clerical amendments.--The table of sections at the
beginning of chapter 131 of title 10, United States Code, is
amended by striking out the item relating to section 2212. The
table of sections at the beginning of chapter 11 of title 31,
United States Code, is amended by striking out the item
relating to section 1114.
SEC. 3053. REGULATIONS ON PROCUREMENT, PRODUCTION, WAREHOUSING, AND
SUPPLY DISTRIBUTION FUNCTIONS.
(a) In General.--Section 2202 of title 10, United States Code, is
amended to read as follows:
``Sec. 2202. Regulations on procurement, production, warehousing, and
supply distribution functions
``The Secretary of Defense shall prescribe regulations governing
the performance within the Department of Defense of the procurement,
production, warehousing, and supply distribution functions, and related
functions, of the Department of Defense.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 131 of such title is amended by striking out the item related
to section 2202 and inserting in lieu thereof the following:
``2202. Regulations on procurement, production, warehousing, and supply
distribution functions.''.
SEC. 3054. REPEAL OF REQUIREMENTS REGARDING PRODUCT EVALUATION
ACTIVITIES.
(a) Repeal.--Section 2369 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 139 of such title is amended by striking out the item related
to section 2369.
SEC. 3055. CODIFICATION AND REVISION OF LIMITATION ON LEASE OF VESSELS,
AIRCRAFT, AND VEHICLES.
(a) Limitation.--(1) Chapter 141 of title 10, United States Code,
is amended by inserting after section 2401 the following new section:
``Sec. 2401a. Lease of vessels, aircraft, and vehicles
``The Secretary of Defense or the Secretary of a military
department may not enter into any contract with a term of 18 months or
more, or extend or renew any contract for a term of 18 months or more,
for any vessel, aircraft, or vehicle, through a lease, charter, or
similar agreement, unless the Secretary has considered all costs of
such contract (including estimated termination liability) and has
determined in writing that the contract is in the best interest of the
Government.''.
(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2401 the
following new item:
``2401a. Lease of vessels, aircraft, and vehicles.''.
(b) Repeal of Superseded Provision.--Section 9081 of Public Law
101-165 (103 Stat. 1147; 10 U.S.C. 2401 note) is repealed.
SEC. 3056. REPEAL OF APPLICATION OF PUBLIC CONTRACTS ACT TO CERTAIN
NAVAL VESSEL CONTRACTS.
(a) Repeal.--Section 7299 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 633 of such title is amended by striking out the item relating
to section 7299.
TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL
BUSINESS, AND MISCELLANEOUS LAWS
Subtitle A--Simplified Acquisition Threshold
PART I--ESTABLISHMENT OF THRESHOLD
SEC. 4001. ESTABLISHMENT OF SIMPLIFIED ACQUISITION THRESHOLD.
The Office of Federal Procurement Policy Act (41 U.S.C. 401 et
seq.) is amended by inserting after section 4 the following new
section:
``SEC. 4A. SIMPLIFIED ACQUISITION THRESHOLD.
``(a) In General.--The simplified acquisition threshold for
purposes of Federal acquisitions is (except as provided in subsection
(b)) the amount of $25,000, as adjusted pursuant to subsection (c).
``(b) Agencies With FACNET Capability.--In the case of an agency
for which there is in effect a certification under section 2302b(c) of
title 10, United States Code, or section 302B(c) of the Federal
Property and Administrative Services Act of 1949 with respect to
implementation of a FACNET capability, the simplified acquisition
threshold is the amount of $100,000, as adjusted pursuant to subsection
(c).
``(c) Periodic Adjustment for Inflation.--The dollar amount in
effect under subsection (a) shall be adjusted on October 1 of each year
divisible by 5 to the equivalent amount in constant fiscal year 1990
dollars (rounded to the nearest $1,000). The dollar amount in effect
under subsection (b) shall be adjusted on October 1 of each year
divisible by 5 to the equivalent amount in constant fiscal year 1993
dollars (rounded to the nearest $1,000).
``(d) Special Rule for Contingency Operations.--In the case of a
contract to be awarded and performed, or a purchase to be made, outside
the United States in support of a contingency operation (as defined in
section 101(a)(13) of title 10, United States Code), the amounts in
effect under subsections (a) and (b) shall be two times the amounts
otherwise applicable.''.
SEC. 4002. FEDERAL ACQUISITION COMPUTER NETWORK.
(a) Federal Acquisition Computer Network.--The Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding
after section 28 the following new section:
``SEC. 29. FEDERAL ACQUISITION COMPUTER NETWORK (FACNET).
``(a) In General.--(1) The Administrator shall establish a program
for the development and implementation of a Federal acquisition
computer network (hereinafter in this section referred to as the
`FACNET'). The Administrator shall assign a program manager for the
FACNET and shall provide for overall direction of policy and leadership
in the development, coordination, installation, operation, and
completion of implementation of the FACNET by executive agencies.
``(2) In carrying out paragraph (1), the Administrator shall
consult with appropriate Federal agencies with applicable technical and
functional expertise, including the National Institute of Standards and
Technology, the General Services Administration, and the Department of
Defense.
``(3) The Administrator shall carry out paragraph (1) not later
than the date that is 5 years after the date of enactment of the
Federal Acquisition Improvement Act of 1994.
``(b) Functions of FACNET.--The FACNET shall have the capacity to
carry out the following functions:
``(1) Government functions.--
``(A) Provide widespread public notice of
solicitations for contract opportunities issued by an
executive agency and of orders to be made by the
agency.
``(B) Allow responses to solicitations and requests
for information to be submitted to the contracting
activity through such system.
``(C) Allow public notice of contract awards to be
provided through such system.
``(D) In cases in which it is practicable, allow
questions regarding solicitations to be answered
through such system.
``(E) Allow orders to be made through such system.
``(F) In cases in which it is practicable, make
payments to contractors by bank card, electronic funds
transfer, or other automated methods.
``(G) Archive data relating to each procurement
action made using such system.
``(2) User functions.--Allow private users to
electronically--
``(A) access notice of solicitations for contract
opportunities issued by an agency and of orders to be
made by the agency;
``(B) selectively access and review solicitations
and orders issued by the agency;
``(C) respond to solicitations and notices of
orders issued by the agency;
``(D) receive orders from the agency;
``(E) access information on contract awards made by
the agency; and
``(F) in cases in which it is practicable, receive
payment by bank card, electronic funds transfer, or
other automated means.
``(3) General functions.--
``(A) Allow the electronic exchange of procurement
information between the private sector and the Federal
Government.
``(B) Employ nationally and internationally
recognized data formats that serve to broaden and ease
the electronic interchange of data.
``(C) Allow convenient and universal user access
through a single point of entry.
``(c) Annual Reports to Congress.--The Administrator shall evaluate
progress by executive agencies in implementing the FACNET under this
section. The Administrator shall submit to the Congress, on the date
that is one year after the date of the enactment of the Federal
Acquisition Improvement Act of 1994 and on that date in each of the 5
years thereafter, a report on the overall progress by the executive
branch and by each executive agency in implementing this section.''.
(b) Technical Amendments.--Section 18 of the Office of Federal
Procurement Policy Act (41 U.S.C. 416) is amended--
(1) in subsection (a)(1)(A), by striking out ``notice'' in
the matter following clause (ii) and inserting in lieu thereof
``notice of solicitation''; and
(2) in subsection (d), by striking out ``a notice under
subsection (e)'' in the first sentence and inserting in lieu
thereof ``a notice of solicitation under subsection (a)''.
SEC. 4003. IMPLEMENTATION IN ARMED SERVICES.
(a) Establishment in Title 10.--Chapter 137 of title 10, United
States Code, is amended by inserting after section 2302 the following
new sections:
``Sec. 2302a. Simplified acquisition threshold
``(a) Simplified Acquisition Threshold.--For purposes of
acquisitions by agencies named in section 2303 of this title, the
simplified acquisition threshold is as specified in section 4A of the
Office of Federal Procurement Policy Act, as in effect on the effective
date of section 4001 of the Federal Acquisition Improvement Act of
1994.
``Sec. 2302b. Implementation of FACNET capability
``(a) Implementation of FACNET Capability.--(1) The head of each
agency named in section 2303 of this title shall implement the Federal
acquisition computer network (`FACNET') capability required by section
29 of the Office of Federal Procurement Policy Act. In the case of the
Department of Defense, the implementation shall be by the Secretary of
Defense for the Department of Defense as a whole. For purposes of this
section, the term `head of an agency' does not include the Secretaries
of the military departments.
``(2) In implementing the FACNET capability pursuant to paragraph
(1), the head of an agency shall consult with the Administrator for
Federal Procurement Policy.
``(b) Designation of Agency Official.--The Secretary of Defense
shall designate the Under Secretary of Defense for Acquisition and
Technology to have responsibility for implementation of FACNET
capability throughout the Department of Defense. The head of each
agency named in paragraph (5) or (6) of section 2303 of this title
shall designate a program manager to have responsibility for
implementation of FACNET capability for that agency and otherwise to
implement this section.
``(c) Certification of FACNET Capability.--(1) When the head of an
agency, with the concurrence of the Administrator for Federal
Procurement Policy, determines that the agency has implemented an
interim FACNET capability (as defined in subsection (f)), the head of
the agency shall certify to Congress that the agency has implemented an
interim FACNET capability.
``(2) When the head of an agency, with the concurrence of the
Administrator for Federal Procurement Policy, determines that the
agency has implemented a full FACNET capability (as defined in
subsection (g)), the head of the agency shall certify to Congress that
the agency has implemented a full FACNET capability.
``(3) The head of each agency shall provide for implementation of
both interim FACNET capability and full FACNET capability, with
priority on providing convenient and universal user access as required
by section 29(b)(3)(C) of the Office of Federal Procurement Policy Act,
in that agency as soon as practicable after the date of the enactment
of the Federal Acquisition Improvement Act of 1994.
``(d) Higher Simplified Acquisition Threshold When FACNET
Capability Certified.--A certification to Congress under subsection (c)
shall be considered to be a certification for purposes of the higher
simplified acquisition threshold under section 4A(b) of the Office of
Federal Procurement Policy Act, except that a certification under
paragraph (1) of subsection (c) shall not constitute such a
certification in the case of solicitations issued after the end of the
five-year period beginning on the date of the enactment of the Federal
Acquisition Improvement Act of 1994.
``(e) Exemption From Notice Provisions.--An agency is exempt from
the requirements of section 18(a)(1) of the Office of Federal
Procurement Policy Act (41 U.S.C. 416(a)(1)) if the head of the agency
makes the certification described in subsection (c)(1).
``(f) Implementation of Interim FACNET Capability.--An agency shall
be considered to have implemented an interim FACNET capability if
(except in the case of contracting activities (or portions thereof) of
the agency for which the head of the agency determines that
implementation is not cost effective or practicable)--
``(1) with respect to each procurement expected to be in an
amount greater than $25,000, the agency has implemented the
FACNET functions described in paragraphs (1)(A) and (2)(A) of
section 29(b) of the Office of Federal Procurement Policy Act,
as in effect on the effective date of section 4002 of the
Federal Acquisition Improvement Act of 1994; and
``(2) with respect to each procurement expected to be in an
amount greater than $25,000, the agency issues notices of
solicitations through a system with those functions for all
contracting opportunities other than in cases covered by
section 18(c) of the Office of Federal Procurement Policy Act
(41 U.S.C. 416(c)).
``(g) Implementation of Full FACNET Capability.--(1) An agency
shall be considered to have implemented a full FACNET capability if
(except in the case of contracting activities (or portions thereof) of
the agency for which the head of the agency determines that
implementation is not cost effective or practicable) the agency has
implemented all of the FACNET functions described in section 29(b) of
the Office of Federal Procurement Policy Act, as in effect on the
effective date of section 4002 of the Federal Acquisition Improvement
Act of 1994.
``(2) For purposes of paragraph (1), an agency may not be
considered to have implemented a full FACNET capability if--
``(A) the head of the agency has determined that
implementation of FACNET capability is not cost effective or
practicable in the case of certain contracting activities (or
portions thereof) of the agency; and
``(B) the percentage of the procurement actions executed by
those contracting activities (or portions thereof) for the
preceding fiscal year is greater than 25 percent of the total
number of procurement actions executed by the agency for that
year.
``(h) Contracting Activities Originally Excluded in
Certification.--(1) If the head of an agency, in certifying under
subsection (c) that the agency has implemented an interim or a full
FACNET capability, determines that such implementation is not cost
effective or practicable in the case of any contracting activity (or
portion thereof) of that agency, then that certification shall not
apply under section 4A(b) of the Office of Federal Procurement Policy
Act to any procurement action by that contracting activity (or portion
thereof).
``(2) If the head of an agency determines that an interim or a full
FACNET capability has subsequently been implemented for that
contracting activity (or portion thereof), the head of the agency shall
make a certification to the Administrator for Federal Procurement
Policy in the same manner as a certification under paragraph (1) or (2)
of subsection (c), as applicable, and such certification shall have the
same effect with respect to that contracting activity (or portion
thereof) as if made under such paragraph of subsection (c).''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 137 of such title is amended by inserting after the item
relating to section 2302 the following new items:
``2302a. Simplified acquisition threshold.
``2302b. Implementation of FACNET capability.''.
SEC. 4004. IMPLEMENTATION IN CIVILIAN AGENCIES.
Title III of the Federal Property and Administrative Services Act
of 1949 is amended by inserting after section 302 the following new
sections:
``SEC. 302A. SIMPLIFIED ACQUISITION THRESHOLD.
``(a) Simplified Acquisition Threshold.--For purposes of
acquisitions by executive agencies, the simplified acquisition
threshold is as specified in section 4A of the Office of Federal
Procurement Policy Act, as in effect on the effective date of section
4001 of the Federal Acquisition Improvement Act of 1994.
``SEC. 302B. IMPLEMENTATION OF FACNET CAPABILITY.
``(a) Implementation of FACNET Capability.--(1) The head of each
executive agency shall implement the Federal acquisition computer
network (`FACNET') capability required by section 29 of the Office of
Federal Procurement Policy Act.
``(2) In implementing the FACNET capability pursuant to paragraph
(1), the head of an executive agency shall consult with the
Administrator for Federal Procurement Policy.
``(b) Designation of Agency Official.--The head of each executive
agency shall designate a program manager to have responsibility for
implementation of FACNET capability for that agency and otherwise to
implement this section.
``(c) Certification of FACNET Capability.--(1) When the head of an
executive agency, with the concurrence of the Administrator for Federal
Procurement Policy, determines that the agency has implemented an
interim FACNET capability (as defined in subsection (f)), the head of
the agency shall certify to Congress that the agency has implemented an
interim FACNET capability.
``(2) When the head of an executive agency, with the concurrence of
the Administrator for Federal Procurement Policy, determines that the
agency has implemented a full FACNET capability (as defined in
subsection (g)), the head of the agency shall certify to Congress that
the agency has implemented a full FACNET capability.
``(3) The head of each executive agency shall provide for
implementation of both interim FACNET capability and full FACNET
capability, with priority on providing convenient and universal user
access as required by section 29(b)(3)(C) of the Office of Federal
Procurement Policy Act, in that agency as soon as practicable after the
date of the enactment of the Federal Acquisition Improvement Act of
1994.
``(d) Higher Simplified Acquisition Threshold When FACNET
Capability Certified.--A certification to Congress under subsection (c)
shall be considered to be a certification for purposes of the higher
simplified acquisition threshold under section 4A(b) of the Office of
Federal Procurement Policy Act, except that a certification under
paragraph (1) of subsection (c) shall not constitute such a
certification in the case of solicitations issued after the end of the
five-year period beginning on the date of the enactment of the Federal
Acquisition Improvement Act of 1994.
``(e) Exemption From Notice Provisions.--An executive agency is
exempt from the requirements of section 18(a)(1) of the Office of
Federal Procurement Policy Act (41 U.S.C. 416(a)(1)) if the head of the
agency makes the certification described in subsection (c)(1).
``(f) Implementation of Interim FACNET Capability.--An executive
agency shall be considered to have implemented an interim FACNET
capability if (except in the case of contracting activities (or
portions thereof) of the agency for which the head of the agency
determines that implementation is not cost effective or practicable)--
``(1) with respect to each procurement expected to be in an
amount greater than $25,000, the executive agency has
implemented the FACNET functions described in paragraphs (1)(A)
and (2)(A) of section 29(b) of the Office of Federal
Procurement Policy Act, as in effect on the effective date of
section 4002 of the Federal Acquisition Improvement Act of
1994; and
``(2) with respect to each procurement expected to be in an
amount greater than $25,000, the executive agency issues
notices of solicitations through a system with those functions
for all contracting opportunities other than in cases covered
by section 18(c) of the Office of Federal Procurement Policy
Act (41 U.S.C. 416(c)).
``(g) Implementation of Full FACNET Capability.--(1) An executive
agency shall be considered to have implemented a full FACNET capability
if (except in the case of contracting activities (or portions thereof)
of the agency for which the head of the agency determines that
implementation is not cost effective or practicable) the executive
agency has implemented all of the FACNET functions described in section
29(b) of the Office of Federal Procurement Policy Act, as in effect on
the effective date of section 4002 of the Federal Acquisition
Improvement Act of 1994.
``(2) For purposes of paragraph (1), an executive agency may not be
considered to have implemented a full FACNET capability if--
``(A) the head of the agency has determined that
implementation of FACNET capability is not cost effective or
practicable in the case of certain contracting activities (or
portions thereof) of the agency; and
``(B) the percentage of the procurement actions executed by
those contracting activities (or portions thereof) for the
preceding fiscal year is greater than 25 percent of the total
number of procurement actions executed by the agency for that
year.
``(h) Contracting Activities Originally Excluded in
Certification.--(1) If the head of an executive agency, in certifying
under subsection (c) that the agency has implemented an interim or a
full FACNET capability, determines that such implementation is not cost
effective or practicable in the case of any contracting activity (or
portion thereof) of that agency, then that certification shall not
apply under section 4A(b) of the Office of Federal Procurement Policy
Act to any procurement action by that contracting activity (or portion
thereof).
``(2) If the head of an executive agency determines that an interim
or a full FACNET capability has subsequently been implemented for that
contracting activity (or portion thereof), the head of the agency shall
make a certification to Administrator for Federal Procurement Policy in
the same manner as a certification under paragraph (1) or (2) of
subsection (c), as applicable, and such certification shall have the
same effect with respect to that contracting activity (or portion
thereof) as if made under such paragraph of subsection (c).''.
PART II--SIMPLIFICATION OF PROCEDURES
SEC. 4011. SMALL BUSINESS PROVISIONS.
(a) Interim Reporting Rule.--Notwithstanding section 4A of the
Office of Federal Procurement Policy Act, as added by section 4001,
during the 5-year period beginning on the date of the issuance in final
form of revisions to the Federal Acquisition Regulation under section
4B of the Office of Federal Procurement Policy Act, as added by section
4012, contracting activities shall continue to report, pursuant to
section 19(d) of the Office of Federal Procurement Policy Act (41
U.S.C. 417(d)), procurement awards with a dollar value of at least
$25,000, but less than $100,000, in conformity with the procedures for
the reporting of a contract award in excess of $25,000 in effect on
November 18, 1993.
(b) Functions of Administrator for Federal Procurement Policy.--
Section 6(d) of the Office of Federal Procurement Policy Act (41 U.S.C.
405(d)) is amended--
(1) in paragraph (7), by striking out ``and'' after the
semicolon at the end; and
(2) by redesignating paragraph (8) as paragraph (10) and
inserting after paragraph (7) the following:
``(8) developing policies, in consultation with the
Administrator of the Small Business Administration, that ensure
that small businesses and small businesses owned and controlled
by socially and economically disadvantaged persons are provided
with the maximum practicable opportunities to participate in
procurements that are conducted for amounts below the
simplified acquisition threshold;
``(9) developing policies that will promote achievement of
goals for participation by small businesses and small
businesses owned and controlled by socially and economically
disadvantaged individuals;''.
SEC. 4012. PROCEDURES FOR PURCHASES BELOW MICRO-PURCHASE THRESHOLD.
The Office of Federal Procurement Policy Act (41 U.S.C. 401 et
seq.) is amended by inserting after section 4A, as added by section
4001, the following new section:
``SEC. 4B. PROCEDURES APPLICABLE TO PURCHASES BELOW MICRO-PURCHASE
THRESHOLD.
``(a) Requirements.--(1) The head of each executive agency shall
ensure that contracting activities of that agency, in awarding a
contract with a price exceeding the micro-purchase threshold, comply
with the requirements of section 8(a) of the Small Business Act (15
U.S.C. 637(a)) and section 2323 of title 10, United States Code, or
section 316 of the Federal Property and Administrative Services Act of
1949, as applicable to that agency.
``(2) The authority under part 13.106(a)(1) of the Federal
Acquisition Regulation (48 C.F.R. 13.106(a)(1)), as in effect on
November 18, 1993, to make purchases without securing competitive
quotations does not apply to any purchases with a price exceeding the
micro-purchase threshold.
``(3) The head of each executive agency shall ensure that
contracting activities of that agency comply with the requirements of
section 15(j) of the Small Business Act (15 U.S.C. 644(j)), relating to
the small business reserve.
``(b) Exclusions for Micro-Purchases.--A purchase by an executive
agency with an anticipated value of the micro-purchase threshold or
less is not subject to the Act of March 3, 1933, commonly referred to
as the `Buy American Act' (41 U.S.C. 10a-10c).
``(c) Certain Contracting Officials Not To Be Considered
Procurement Officials.--Any civilian officer or employee, and any
member of the Armed Forces, who has authority to enter into contracts
but whose contracting authority is limited to the amount of the micro-
purchase threshold or less is not a procurement official as defined in
paragraph (3)(A) of section 27(p) of the Office of Federal Procurement
Policy Act (41 U.S.C. 423(p)).
``(d) Implementation Through FAR.--The provisions of subsections
(a), (b), and (c) shall be implemented through the Federal Acquisition
Regulation.
``(e) Micro-Purchase Threshold Defined.--For purposes of this
subsection, the micro-purchase threshold is the amount of $2,500,
adjusted on October 1 of each year divisible by 5 to the equivalent
amount in constant fiscal year 1993 dollars (rounded to the nearest
$100).''.
SEC. 4013. PROCUREMENT NOTICE.
(a) Continuation of Existing Notice Thresholds.--Subsection (a) of
section 18 of the Office of Federal Procurement Policy Act (41 U.S.C.
416) is amended as follows:
(1) Paragraph (1) is amended--
(A) by striking out ``the small purchase
threshold'' each place it appears and inserting in lieu
thereof ``the simplified acquisition threshold'';
(B) by striking out ``(c)--'' in the matter
preceding subparagraph (A) and inserting in lieu
thereof ``(c):'';
(C) by striking out ``an executive'' at the
beginning of subparagraphs (A) and (C) and inserting in
lieu thereof ``An executive'';
(D) by striking out the semicolon at the end of
subparagraph (A) and inserting in lieu thereof a
period; and
(E) by amending subparagraph (B) to read as
follows:
``(B) An executive agency intending to solicit bids or
proposals for a contract for property or services for a price
expected to exceed $10,000 but not to exceed the simplified
acquisition threshold shall post a notice of solicitation
described in subsection (b). The notice shall be posted at the
contracting office issuing the solicitation or shall be made
available through an electronic system with a FACNET capability
that at least meets the requirements of paragraphs (1)(A) and
(2)(A) of section 29(b). The notice shall be posted for a
period of not less than 10 days, except that in the case of a
posting made through an electronic system with such a FACNET
capability, the posting may be for a period of less than 10
days as prescribed in the Federal Acquisition Regulation.''.
(2) Paragraph (3)(B) is amended by inserting after ``(B)''
the following: ``in the case of a contract or order for an
amount expected to exceed the simplified acquisition
threshold,''.
(b) Opportunity for All Responsible Potential Offerors.--Such
subsection is further amended by adding at the end the following:
``(4) An executive agency intending to solicit offers for a
contract for which a notice of solicitation is required to be posted
under paragraph (1)(B) shall ensure that all potential offerors are
permitted to respond to the solicitation for the contract within the
period of time specified in the solicitation for the submission of
offers.''.
(c) Establishment of Deadline for Submission of Offers.--Such
subsection is further amended by inserting after paragraph (4), as
added by subsection (b), the following new paragraph:
``(5) An executive agency shall establish a deadline for the
submission of all bids or proposals in response to a notice of
solicitation with respect to which no such deadline is provided by
statute.''.
(d) Exceptions.--Subsection (c) of such section is amended by
adding at the end the following new paragraph:
``(4)(A) The requirements of subsection (a)(1) shall not apply in
the case of an acquisition accomplished through the use of an
electronic system with a FACNET capability, as described in section 29
and certified under section 2302a of title 10, United States Code, or
section 302A of the Federal Property and Administrative Services Act of
1949.
``(B) The Federal Acquisition Regulation shall provide for minimum
periods of time for submission of offers for acquisitions described in
subparagraph (A). Such periods shall provide offerors a reasonable
opportunity to respond.
``(C) A notice of solicitation of bids or proposals for an
acquisition described in subparagraph (A) shall include the matter
described in under subsection (b).''.
SEC. 4014. GAO TEST AND REPORT ON PERFORMANCE OF SIMPLIFIED ACQUISITION
THRESHOLD.
(a) Performance Test.--The Comptroller General of the United States
shall collect data and assess the effects of the simplified acquisition
threshold, as established in section 4A of the Office of Federal
Procurement Policy Act, on the participation of small business concerns
(including small business concerns owned and controlled by socially and
economically disadvantaged individuals) in procurement awards of less
than $100,000 and the benefits and detriments, if any, to the buying
activities of the various Executive agencies.
(b) Data To Be Collected.--Data collected under subsection (a)
shall include data regarding whether the establishment of the
simplified acquisition threshold has improved the acquisition process
in terms of reduced paperwork, financial or other savings to the
Federal Government, and any increase in the number of contractors
participating in the contracting process.
(c) Period.--Data shall be collected for purposes of subsection (a)
during the period beginning with the first full fiscal year quarter
after the effective date of the amendments made by section 4001 and
ending on September 30, 1997.
(d) Report.--By March 1, 1998, the Comptroller General shall submit
to Congress a report on the effects of the establishment of the
simplified acquisition threshold by the amendments made by section
4001.
PART III--INAPPLICABILITY OF LAWS TO ACQUISITIONS NOT IN EXCESS OF
SIMPLIFIED ACQUISITION THRESHOLD
Subpart A--Generally
SEC. 4021. INAPPLICABILITY OF FUTURE ENACTED PROCUREMENT LAWS TO
CONTRACTS NOT EXCEEDING THE SIMPLIFIED ACQUISITION
THRESHOLD.
(a) Armed Services.--Section 2302a of title 10, United States Code,
as added by section 4003(a), is amended by adding at the end the
following new subsection:
``(b) Construction With Future Enactments.--A provision of law
enacted after the date of the enactment of the Federal Acquisition
Improvement Act of 1994 shall not be construed as applicable to
purchases of property or services by an agency named in section 2303 of
this title for an amount not in excess of the simplified acquisition
threshold unless that provision of law specifically refers to this
section and specifically states that such provision of law modifies or
supersedes this section.''.
(b) Agencies.--Section 302A of the Federal Property and
Administrative Services Act of 1949, as added by section 4004(a), is
amended by adding at the end the following new subsection:
``(b) Construction With Future Enactments.--A provision of law
enacted after the date of the enactment of the Federal Acquisition
Improvement Act of 1994 shall not be construed as applicable to
purchases of property or services by an executive agency for an amount
not in excess of the simplified acquisition threshold unless that
provision of law specifically refers to this section and specifically
states that such provision of law modifies or supersedes this
section.''.
Subpart B--Armed Services Acquisitions
SEC. 4031. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.
Section 2302a of title 10, United States Code, as amended by
section 4021, is further amended by adding at the end the following new
subsection:
``(c) Inapplicability of Certain Provisions of Law.--The following
provisions of law (and regulations prescribed under such provisions)
shall not apply to any contract entered into by the Department of
Defense in an amount not greater than the simplified acquisition
threshold:
``(1) Section 2306(b) of this title (relating to
prohibition on contingent fees).
``(2) Section 2313 of this title (relating to examination
of books and records of contractor).
``(3) Section 2384(b) of this title (relating to
requirement to identify suppliers and sources of supplies).
``(4) Section 2393(d) of this title (relating to
prohibition against doing business with certain offerors of
contractors).
``(5) Section 2402 of this title (relating to prohibition
on limitation of subcontractor direct sales).
``(6) Section 2408(a) of this title (relating to
prohibition on persons convicted of defense-contract related
felonies).
``(7) Section 2410b of this title (relating to contractor
inventory accounting system standards).
``(8) Section 2534 of this title (relating to miscellaneous
limitations on procurement of goods other than American goods).
``(9) Section 27(e) of the Office of Federal Procurement
Policy Act (41 U.S.C. 423(e)).
``(10) The Drug-Free Workplace Act of 1988 (subtitle D of
title V of Public Law 100-690; 41 U.S.C. 701 et seq.).''.
SEC. 4032. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN
PROVISIONS OF LAW.
(a) Inapplicability of Requirement for Contract Clause Regarding
Contingent Fees.--Section 2306(b) of title 10, United States Code, is
amended by adding at the end the following: ``This subsection does not
apply to a contract that is for an amount not in excess of the
simplified acquisition threshold.''.
(b) Inapplicability of Authority To Examine Books and Records of
Contractors.--Section 2313 of title 10, United States Code, as amended
by section 2201, is further amended by adding at the end of subsection
(f) the following:
``(2) A contract that is for an amount not in excess of the
simplified acquisition threshold.''.
(c) Inapplicability of Requirement To Identify Suppliers and
Sources of Supplies.--Section 2384(b) of title 10, United States Code,
is amended by adding at the end the following new paragraph:
``(3) The regulations prescribed pursuant to paragraph (1) do not
apply to a contract for an amount that does not exceed the simplified
acquisition threshold.''.
(d) Inapplicability of Prohibition Against Doing Business with
Certain Offerors or Contractors.--Section 2393(d) of title 10, United
States Code, is amended in the second sentence by striking out
``above'' and all that follows and inserting in lieu thereof ``in
excess of the simplified acquisition threshold.''.
(e) Inapplicability of Prohibition on Limiting Subcontractor Direct
Sales to the United States.--Section 2402 of title 10, United States
Code, is amended by adding at the end the following new subsection:
``(c) This section does not apply to a contract that is for an
amount not in excess of the simplified acquisition threshold.''.
(f) Inapplicability of Prohibition on Persons Convicted of Defense-
related Felonies.--Section 2408(a) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
``(4) In this subsection, the term `defense contract' means a
contract in an amount in excess of the simplified acquisition
threshold.''.
(g) Inapplicability of contractor inventory accounting system
standards.--Section 2410b of title 10, United States Code, is amended--
(1) by inserting ``(a)'' before ``The Secretary''; and
(2) by adding at the end the following:
``(b) The regulations prescribed pursuant to subsection (a) shall
not apply to a contract that is for an amount not in excess of the
simplified acquisition threshold.''.
(h) Inapplicability of Miscellaneous Procurement Limitations.--
Section 2534 of title 10, United States Code, is amended by adding at
the end the following:
``(g) Inapplicability to Contracts under Simplified Acquisition
Threshold.--This section does not apply to a contract for an amount
that does not exceed the simplified acquisition threshold.''.
Subpart C--Civilian Agency Acquisitions
SEC. 4041. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.
Section 302A of the Federal Property and Administrative Services
Act of 1949, as amended by section 4021(b), is further amended by
adding at the end the following new subsection:
``(c) Inapplicability of Certain Provisions of Law.--The following
provisions of law (and regulations prescribed under such provisions)
shall not apply to any contract entered into by an executive agency in
an amount not greater than the simplified acquisition threshold:
``(1) Sections 303G, 304(a), and 304C of this Act.
``(2) Section 27(e) of the Office of Federal Procurement
Policy Act (41 U.S.C. 423(e)).
``(3) The Drug-Free Workplace Act of 1988 (subtitle D of
title V of Public Law 100-690; 41 U.S.C. 701 et seq.).''.
SEC. 4042. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN
PROVISIONS OF LAW.
(a) Inapplicability of Prohibition on Limiting Subcontractor Direct
Sales to the United States.--Section 303G of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253g) is amended by
adding at the end the following new subsection:
``(c) This section does not apply to a contract for an amount that
is not in excess of the simplified acquisition threshold.''.
(b) Inapplicability of Requirement for Contract Clause Regarding
Contingent Fees.--Section 304(a) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 254(a)) is amended by
adding at the end the following: ``The preceding sentence does not
apply to a contract for an amount that is not in excess of the
simplified acquisition threshold.''.
(c) Inapplicability of Authority To Examine Books and Records of
Contractors.--Section 304C of the Federal Property and Administrative
Services Act of 1949, as added by section 2251(a), is amended by adding
at the end of subsection (e) the following:
``(2) A contract that is for an amount not in excess of the
simplified acquisition threshold.''.
Subpart D--Acquisitions Generally
SEC. 4051. CONFORMANCE OF CERTAIN PROCUREMENT INTEGRITY REQUIREMENTS.
Subsection (e)(7)(A) of section 27 of the Office of Federal
Procurement Policy Act (41 U.S.C. 423) is amended by inserting after
``$100,000'' the following: ``or the simplified acquisition threshold,
whichever is greater''.
SEC. 4052. INAPPLICABILITY OF THE DRUG-FREE WORKPLACE ACT OF 1988.
Section 5152(a)(1) of the Drug-Free Workplace Act of 1988 (subtitle
D of title V of the Anti-Drug Abuse Act of 1988; Public Law 100-690; 41
U.S.C. 701(a)(1)) is amended by striking out ``of $25,000 or more from
any Federal agency'' and inserting in lieu thereof ``in excess of the
simplified acquisition threshold (as defined in section 4A of such Act)
by any Federal agency''.
PART IV--CONFORMING AMENDMENTS
SEC. 4071. ARMED SERVICES ACQUISITIONS.
(a) Simplified Acquisition Procedures.--Section 2304(g) of title
10, United States Code, is amended--
(1) in paragraph (1), by striking out ``small purchases of
property and services'' and inserting in lieu thereof
``purchases of property and services for amounts not in excess
of the simplified acquisition threshold'';
(2) by striking out paragraph (2);
(3) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively;
(4) in paragraph (2), as so redesignated--
(A) by striking out ``small purchase threshold''
and inserting in lieu thereof ``simplified acquisition
threshold''; and
(B) by striking out ``small purchase procedures''
and inserting in lieu thereof ``simplified
procedures''; and
(5) in paragraph (3), as so redesignated, by striking out
``small purchase procedures'' and inserting in lieu thereof
``simplified procedures''.
(b) Solicitation Content Requirement.--Section 2305(a)(2) of such
title is amended by striking out ``small purchases)'' in the matter
preceding subparagraph (A) and inserting in lieu thereof ``a purchase
for an amount not in excess of the simplified acquisition threshold)''.
(c) Cost Type Contracts.--Section 2306(e)(2)(A) of such title is
amended by striking out ``small purchase threshold'' and inserting in
lieu thereof ``simplified acquisition threshold''.
SEC. 4072. CIVILIAN AGENCY ACQUISITIONS.
(a) Simplified Acquisition Procedures.--Section 303(g) of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C.
253(g)) is amended--
(1) in paragraph (1), by striking out ``small purchases of
property and services'' and inserting in lieu thereof
``purchases of property and services for amounts not in excess
of the simplified acquisition threshold'';
(2) by striking out paragraph (2);
(3) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively;
(4) in paragraph (2), as so redesignated--
(A) by striking out ``small purchase threshold''
and inserting in lieu thereof ``simplified acquisition
threshold''; and
(B) by striking out ``small purchase procedures''
and inserting in lieu thereof ``simplified
procedures'';
(5) in paragraph (3), as so redesignated, by striking out
``small purchase procedures'' and inserting in lieu thereof
``the simplified procedures''; and
(6) by striking out paragraph (5) and inserting in lieu
thereof the following:
``(4) In this subsection, the term `simplified acquisition
threshold' has the meaning given such term in section 4A of the Office
of Federal Procurement Policy Act.''.
(b) Solicitation Content Requirement.--Section 303A(b) of such Act
(41 U.S.C. 253a(b)) is amended by striking out ``small purchases)'' in
the matter preceding paragraph (1) and inserting in lieu thereof ``a
purchase for an amount not in excess of the simplified acquisition
threshold)''.
(c) Cost Type Contracts.--Section 304(b) of such Act (41 U.S.C.
254(b)) is amended in the third sentence by striking out ``either
$25,000'' and inserting in lieu thereof ``either the simplified
acquisition threshold''.
SEC. 4073. OFFICE OF FEDERAL PROCUREMENT POLICY ACT.
Section 19(a) of the Office of Federal Procurement Policy Act (41
U.S.C. 417(a)) is amended by striking out ``procurements, other than
small purchases,'' and inserting in lieu thereof ``procurements for
amounts in excess of the simplified acquisition threshold''.
PART V--REVISION OF REGULATIONS
SEC. 4081. REVISION REQUIRED.
(a) Federal Acquisition Regulation.--(1) Not later than one year
after the date of the enactment of this Act, the Federal Acquisition
Regulatory Council established by section 25(a) of the Office of
Federal Procurement Policy Act (41 U.S.C. 421(a)) shall--
(A) review the Federal Acquisition Regulation to identify
regulations that are applicable to acquisitions in excess of a
specified amount that is less than $100,000; and
(B) amend the regulations so identified as necessary to
provide that such regulations do not apply to acquisitions that
are not in excess of the simplified acquisition threshold.
(2) Paragraph (1) does not apply in the case of a regulation for
which such an amendment would not be in the national interest, as
determined by the Council.
(b) Supplemental Regulations.--Not later than 90 days after the
date on which the review required by subsection (a) is completed, the
head of each Federal agency that has issued regulations, policies, or
procedures referred to in section 25(c)(2) of the Office of Federal
Procurement Policy Act (41 U.S.C. 421(c)(2)) shall--
(1) identify any such regulation, policy, or procedure that
is applicable to acquisitions in excess of a specified amount
that is less than $100,000; and
(2) pursuant to section 22 of such Act (41 U.S.C. 418b),
publish amendments to the regulations so identified as
necessary to provide that such regulations, policies, and
procedures do not apply to acquisitions that are not in excess
of the simplified acquisition threshold.
(c) Definitions.--In this section:
(1) The term ``simplified acquisition threshold'' has the
meaning given such term in section 4A of the Office of Federal
Procurement Policy Act, as added by section 4001.
(2) The term ``Federal agency'' has the meaning given such
term in section 3(b) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 472(b)).
Subtitle B--Socioeconomic and Small Business Laws
SEC. 4101. PAYMENT PROTECTIONS FOR SUBCONTRACTORS AND SUPPLIERS.
(a) Regulations.--
(1) In general.--The Administrator for Federal Procurement
Policy shall prescribe in regulations the requirements
described in paragraph (2).
(2) Procedures relating to compliance with payment terms.--
(A) Under procedures established in the regulations, upon the
assertion by a subcontractor or supplier of a contractor
performing a Government contract that the subcontractor or
supplier has not been paid by the prime contractor in
accordance with the payment terms of the subcontract, purchase
order, or other agreement with the prime contractor, the
contracting officer may determine the following:
(i) With respect to a construction contract,
whether the contractor has made progress payments to
the subcontractor or supplier in compliance with
chapter 39 of title 31, United States Code.
(ii) With respect to a contract other than a
construction contract, whether the contractor has made
progress or other payments to the subcontractor or
supplier in compliance with the terms of the
subcontract, purchase order, or other agreement with
the prime contractor.
(iii) With respect to either a construction
contract or a contract other than a construction
contract, whether the contractor has made final payment
to the subcontractor or supplier in compliance with the
terms of the subcontract, purchase order, or other
agreement with the prime contractor.
(iv) With respect to either a construction contract
or a contract other than a construction contract,
whether any certification of payment of the
subcontractor or supplier accompanying the contractor's
payment request to the Government is accurate.
(B) If the contracting officer determines that the prime
contractor is not in compliance with any matter referred to in
clause (i), (ii), or (iii) of subparagraph (A), the contracting
officer may, under procedures established in the regulations--
(i) encourage the prime contractor to make timely
payment to the subcontractor or supplier; or
(ii) reduce or suspend progress payments with
respect to amounts due to the prime contractor.
(C) If the contracting officer determines that a
certification referred to in clause (iv) of subparagraph (A) is
inaccurate in any material respect, the contracting officer
shall, under procedures established in the regulations,
initiate appropriate administrative or other remedial action.
(D) This paragraph shall apply with respect to any
Government contract, other than a Department of Defense
contract, that is in effect on the date of promulgation of the
regulations under this subsection or that is awarded after such
date.
(b) Inapplicability to Certain Contracts.--The regulations
prescribed under this section shall not apply to the following
contracts:
(1) A contract that is for an amount not in excess of the
simplified acquisition threshold (within the meaning of section
4A of the Office of Federal Procurement Policy Act).
(2) A contract for the acquisition of commercial items (as
that term is defined in section 315 of the Federal Property and
Administrative Services Act of 1949).
(c) Regulations Deadlines.--(1) The Administrator for Federal
Procurement Policy shall publish proposed regulations under subsection
(a) not later than 180 days after the date of the enactment of this
Act.
(2) The Administrator shall publish final regulations under
subsection (a) not later than 270 days after the date of the enactment
of this Act.
(d) Amendments to Armed Services Provision.--Section 806 of the
National Defense Authorization Act for Fiscal Years 1992 and 1993
(Public Law 102-190; 10 U.S.C. 2301 note) is amended by striking out
subsection (c) and inserting in lieu thereof the following:
``(c) Inapplicability to Certain Contracts.--The regulations
prescribed under this section shall not apply to the following
contracts:
``(1) A contract that is for an amount not in excess of the
simplified acquisition threshold (within the meaning of section
4A of the Office of Federal Procurement Policy Act).
``(2) A contract for the acquisition of commercial items
(as that term is defined in section 2281 of title 10, United
States Code).''.
SEC. 4102. SMALL BUSINESS PROCUREMENT ADVISORY COUNCIL.
(a) Establishment.--There is hereby established an interagency
council to be known as the ``Small Business Procurement Advisory
Council'' (hereinafter in this section referred to as the ``Council'').
(b) Duties.--The duties of the Council are--
(1) to serve as a forum for discussion of issues and
problems relating to, and ideas for improvement of, small
business procurement matters within the Federal Government;
(2) to provide information to other departments and
agencies of the Federal Government about small business
procurement; and
(3) to issue advisory reports to the Small Business
Administration and the Office of Federal Procurement Policy on
small business procurement matters.
(c) Membership.--The Council shall be composed of the following
members:
(1) The Administrator of the Small Business Administration
(or the designee of the Administrator).
(2) The Administrator for Federal Procurement Policy (or
the designee of the Administrator).
(3) The Director of the Minority Business Development
Agency.
(4) The head of each Office of Small and Disadvantaged
Business Utilization in each Federal agency having procurement
powers.
(d) Co-Chairmen.--The Council shall be co-chaired by the
Administrator of the Small Business Administration and the
Administrator for Federal Procurement Policy.
(e) Meetings.--The Council shall meet at the call of the chairmen,
but not less often than four times a year and once each quarter.
(f) Director.--The Chief Counsel for Advocacy of the Small Business
shall serve as the director of the Council. The director may not vote
on matters before the council except in the case of a tie vote among
the members. The duties of the director shall be determined by the
chairmen of the Council. The Chief Counsel for Advocacy shall receive
no additional pay by reason of the counsel's service as director of the
Council.
(g) Annual Report.--Not later than 30 days after the end of each
fiscal year, the Council shall submit to Congress a report detailing
the activities of the Council in the preceding fiscal year in carrying
out this section.
Subtitle C--Miscellaneous Acquisition Laws
SEC. 4151. RESTRICTION ON USE OF NONCOMPETITIVE PROCEDURES FOR
PROCUREMENT FROM A SPECIFIED SOURCE.
(a) Armed Services Acquisitions.--Section 2304 of title 10, United
States Code, is further amended--
(1) in subsection (c)(5), by inserting ``subject to
subsection (k),'' after ``(5)''; and
(2) by adding at the end the following new subsection:
``(k)(1) It is the policy of Congress that no legislation should be
enacted that requires a procurement by an agency to be made from a
specified non-Federal Government source.
``(2) A provision of law may not be construed as requiring a
procurement by an agency to be made from a specified non-Federal
Government source unless that provision of law--
``(A) specifically refers to this subsection;
``(B) specifically identifies the particular non-Federal
Government source from which the procurement is to be made; and
``(C) specifically states that the procurement from that
source is required by such provision of law in contravention of
the policy set forth in paragraph (1).''.
(b) Civilian Agency Acquisitions.--Section 303 of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253) is
amended--
(1) in subsection (c)(5), by inserting ``subject to
subsection (h),'' after ``(5)''; and
(2) by adding at the end the following new subsection:
``(h)(1) It is the policy of Congress that no legislation should be
enacted that requires a procurement by an executive agency to be made
from a specified non-Federal Government source.
``(2) A provision of law may not be construed as requiring a
procurement by an executive agency to be made from a specified non-
Federal Government source unless that provision of law--
``(A) specifically refers to this subsection;
``(B) specifically identifies the particular non-Federal
Government source involved; and
``(C) specifically states that the procurement from that
source is required by such provision of law in contravention of
the policy set forth in paragraph (1).''.
SEC. 4152. REPEAL OF OBSOLETE PROVISION.
Section 308 of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 258) is repealed.
TITLE V--STANDARDS OF CONDUCT
SEC. 5001. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.
(a) Amendment of OFPP Act.--The Office of Federal Procurement
Policy Act, as amended by section 1091, is further amended by inserting
after section 22 the following new section 23:
``SEC. 23. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.
``(a) Limitation on Use of Contract Advisory and Assistance
Services.--The head of an agency may not provide for an evaluation or
analysis of any aspect of a proposal submitted for an acquisition by
that agency to be conducted by a person who is not an employee of an
executive agency or a member of the Armed Forces unless the agency head
determines that employees or members with adequate training and
capability to perform the evaluation or analysis are not readily
available within the agency or any other executive agency.
``(b) Compliance With FAR Standards.--In the administration of this
section, the head of each executive agency shall comply with the
Federal Acquisition Regulation in determining whether expertise is
readily available and in determining the standards of adequate training
and capability of employees and members of the Armed Forces to conduct
acquisitions.
``(c) Definition.--For purposes of this section, the term
`employee' has the meaning given such term by section 2105 of title 5,
United States Code.''.
(b) Requirement for Guidance and Regulations.--
(1) Guidance and regulations required.--The Federal
Acquisition Regulatory Council established by section 25(a) of
the Office of Federal Procurement Policy Act (41 U.S.C. 421(a))
shall provide guidance and promulgate regulations regarding--
(A) what actions Federal agencies are required to
take to determine whether expertise is readily
available within the Federal Government before
contracting for advisory and technical services to
conduct acquisitions; and
(B) the manner in which Federal employees with
expertise may be shared with agencies needing expertise
for such acquisitions.
(2) Definition.--In paragraph (1), the term ``employee''
has the meaning given such term by section 2105 of title 5,
United States Code.
(3) Deadline.--The guidance and regulations required by
paragraph (1) shall be provided and promulgated not later than
180 days after the date of the enactment of this Act.
SEC. 5002. REPEAL OF EXECUTED REQUIREMENT FOR STUDY AND REPORT.
Section 17 of the Office of Federal Procurement Policy Act (41
U.S.C. 415) is repealed.
SEC. 5003. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED FOR
ACQUISITION REGULATIONS.
Section 22 of the Office of Federal Procurement Policy Act (41
U.S.C. 418b) is amended--
(1) by striking out ``30 days'' in subsection (a) and
inserting in lieu thereof ``45 days''; and
(2) by adding at the end of subsection (d) the following
new paragraph:
``(3) A policy, regulation, procedure, or form described in
subsection (a) may (notwithstanding that subsection) take effect
earlier than 45 days after the date of publication thereof in the
Federal Register pursuant to subsection (b) if the officer authorized
to issue the procurement policy, regulation, procedure, or form
determines that compelling circumstances make compliance with the 45-
day requirement under subsection (a) impracticable. However, the
policy, regulation, procedure, or form may not take effect earlier than
30 days after the publication date except as provided in paragraph
(1).''.
SEC. 5004. REPEAL OF SUPERSEDED AND OBSOLETE LAWS.
(a) Repeal.--The following sections of title 10, United States
Code, are repealed: sections 2207, 2397, 2397a, 2397b, and 2397c.
(b) Clerical Amendments.--
(1) The table of sections at the beginning of chapter 131
of such title is amended by striking out the item relating to
section 2207.
(2) The table of sections at the beginning of chapter 141
of such title is amended by striking out the items relating to
sections 2397, 2397a, 2397b, and 2397c.
TITLE VI--DEFENSE TRADE AND COOPERATION
SEC. 6001. EXCEPTION TO BUY AMERICAN ACT FOR MICRO-PURCHASES.
Section 2 of title III of the Act of March 3, 1933 (41 U.S.C. 10a),
commonly referred to as the ``Buy American Act'', is amended by adding
at the end the following: ``This section shall not apply to
manufactured articles, materials, or supplies procured under any
contract the award value of which is less than or equal to the micro-
purchase threshold under section 4B of the Office of Federal
Procurement Policy Act.''.
SEC. 6002. POLICY ON PURCHASE OF FOREIGN GOODS.
(a) In General.--Section 2533 of title 10, United States Code, is
amended to read as follows:
``Sec. 2533. Policy on the purchase of foreign goods
``(a) Determination Under Buy American Act.-- In determining
whether application of title III of the Act of March 3, 1933 (41 U.S.C.
10a et seq.), popularly known as the `Buy American Act', is
inconsistent with the public interest, the Secretary of Defense shall
give adequate consideration to the following:
``(1) The bids or proposals of small business firms in the
United States which have offered to furnish American goods.
``(2) The bids or proposals of all other firms in the
United States which have offered to furnish American goods.
``(3) The balance of payments of the United States.
``(4) The cost of shipping goods which are other than
American goods.
``(5) Any duty, tariff, or surcharge which may enter into
the cost of using goods which are other than American goods.
``(6) Coordination of acquisition activities of the
Department of Defense with obligations contained in
international agreements and with the acquisition activities of
major United States allies.
``(7) The need to ensure that the Department of Defense has
access to advanced state-of-the-art commercial technology.
``(8) The need to protect the national technology and
industrial base, to preserve and enhance the national
technology employment base, and to provide for a defense
mobilization base.
``(9) The need to maintain the same source of supply for
spare and replacement parts either for an end item that
qualifies as an American good or to maintain or foster the
integration of the military and commercial industrial base.
``(10) National security interests of the United States.
``(b) In this section, the term `goods which are other than
American goods' means--
``(1) an end product that is not mined, produced, or
manufactured in the United States; or
``(2) an end product that is manufactured in the United
States but which includes components mined, produced, or
manufactured outside the United States the aggregate cost of
which exceeds the aggregate cost of the components of such end
product that are mined, produced, or manufactured in the United
States.''.
(b) Clerical Amendment.--The table of sections at the beginning of
subchapter V of chapter 148 of such title is amended by striking out
the item relating to section 2533 and inserting in lieu thereof the
following:
``2533. Policy on purchase of foreign goods.''.
SEC. 6003. CONSOLIDATION OF LIMITATIONS ON PROCUREMENT OF GOODS OTHER
THAN AMERICAN GOODS.
Section 2534 of title 10, United States Code, is amended--
(1) by striking out subsections (a) through (f);
(2) by redesignating subsection (g), as added by section
4032, as subsection (d); and
(3) by inserting after the section heading the following:
``(a) Limitation on Certain Procurements.--The Secretary of Defense
may procure the following items only if they are manufactured by an
entity that is part of the national technology and industrial base (as
defined in section 2491(1) of this title):
``(1) Buses.--Multipassenger motor vehicles (buses).
``(2) Chemical weapons antidote.--Chemical weapons antidote
contained in automatic injectors (or components for such
injectors), but only if the company that manufactures the item
not only manufactures it in the United States but also meets
the following requirements:
``(A) The company is an existing producer under the
industrial preparedness program at the time the
contract is awarded.
``(B) The company has received all required
regulatory approvals.
``(C) The company has the plant, equipment, and
personnel to perform the contract in existence in the
United States at the time the contract is awarded.
``(3) Valves and machine tools.--(A) Items in the following
categories:
``(i) Powered and non-powered valves in Federal
Supply Classes 4810 and 4820 used in piping for naval
surface ships and submarines.
``(ii) Machine tools in the Federal Supply Classes
for metal-working machinery numbered 3405, 3408, 3410
through 3419, 3426, 3433, 3438, 3441 through 3443,
3445, 3446, 3448, 3449, 3460, and 3461.
``(B) Contracts for the procurement of items described in
subparagraph (A) include contracts--
``(i) for the use of such items in any property
under the control of the Department of Defense,
including Government-owned, contractor-operated
facilities; and
``(ii) entered into by contractors on behalf of the
Department of Defense for the purposes of providing
such items to other contractors as Government-furnished
equipment.
``(C) In any case in which a contract for items described
in subparagraph (A) includes the procurement of more than one
Federal Supply Class of machine tools or machine tools and
accessories, each supply class shall be evaluated separately
for purposes of determining whether the limitation in this
subsection applies.
``(D) This paragraph is effective through fiscal year 1996.
``(4) Air circuit breakers.--Air circuit breakers for naval
vessels.
``(5) Sonobuoys.--Sonobuoys.
``(6) Ball bearings and roller bearings.--Ball bearings and
roller bearings, in accordance with subpart 225.71 of part 225
of the Defense Federal Acquisition Regulation Supplement, as in
effect on October 23, 1992. This paragraph is effective through
fiscal year 1995.
``(b) Exceptions.--The Secretary of Defense may waive the
limitation in subsection (a) with respect to the procurement of an item
listed in that subsection if the Secretary determines that any of the
following apply:
``(1) Application of the limitation would cause
unreasonable costs or delays to be incurred.
``(2) United States producers of the item would not be
jeopardized by competition from a foreign country and that
country does not discriminate against defense items produced in
the United States to a greater degree than the United States
discriminates against defense items produced in that country.
``(3) Application of the limitation would impede
cooperative programs entered into between the Department of
Defense and a foreign country and that country does not
discriminate against defense items produced in the United
States to a greater degree than the United States discriminates
against defense items produced in that country.
``(4) Satisfactory quality items manufactured by an entity
that is part of the national technology and industrial base (as
defined in section 2491(1) of this title) are not available.
``(5) Application of the limitation would result in the
existence of only one source for the item that is an entity
that is part of the national technology and industrial base (as
defined in section 2491(1) of this title).
``(6) The procurement is for an amount less than the
simplified acquisition threshold and simplified purchase
procedures are being used.
``(7) Application of the limitation is not in the national
security interests of the United States.
``(8) Application of the limitation would adversely affect
a United States company.
``(c) Principle of Construction with Future Laws.--A provision of
law may not be construed as modifying or superseding the provisions of
this section, or as requiring funds to be limited, or made available,
by the Secretary of Defense to a particular domestic source by
contract, unless that provision of law--
``(1) specifically refers to this section;
``(2) specifically states that such provision of law
modifies or supersedes the provisions of this section; and
``(3) specifically identifies the particular domestic
source involved and states that the contract to be awarded
pursuant to such provision of law is being awarded in
contravention of this section.''.
SEC. 6004. INTERNATIONAL COOPERATIVE AGREEMENTS.
(a) Defense International Agreements.--
(1) Terminology revisions.--Section 2531 of title 10,
United States Code, is amended--
(A) in the subsection captions for subsections (a)
and (c), by striking out ``MOUs and Related'' and
inserting in lieu thereof ``International'';
(B) in subsection (a), by striking out ``proposed
memorandum of understanding, or any existing or
proposed agreement related to a memorandum of
understanding,'' in the matter preceding paragraph (1)
and inserting in lieu thereof ``proposed international
agreement, including a memorandum of understanding,'';
(C) by striking out ``memorandum of understanding
or related agreement'' each place it appears and
inserting in lieu thereof ``international agreement'';
(D) in subsection (b), by striking out ``memorandum
or related agreement'' each place it appears in the
second sentence and inserting in lieu thereof
``international agreement''; and
(E) in subsection (c)--
(i) by striking out ``A'' after
``Agreements.--'' and inserting in lieu thereof
``An''; and
(ii) by striking out ``memorandum or
agreement'' and inserting in lieu thereof
``international agreement''.
(2) Expanded scope of agreements.--Subsection (a) of such
section is further amended by striking out ``research,
development, or production'' in the matter preceding paragraph
(1) and inserting in lieu thereof ``research, development,
production, or logistics support''.
(3) Clerical amendments.--
(A) Section heading.--The heading of such section
is amended to read as follows:
``Sec. 2531. Defense international agreements''.
(B) Table of sections.--The item relating to such
section in the table of sections at the beginning of
subchapter V of chapter 148 of such title is amended to
read as follows:
``2531. Defense international agreements.''.
(b) Addition to Definition of Cooperative Project.--Section
2350i(c)(1) of title 10, United States Code, is amended in subparagraph
(B)--
(1) by striking out ``or'' at the end of clause (ii);
(2) by redesignating clause (iii) as clause (iv); and
(3) by inserting after clause (ii) the following:
``(iii) modifying existing military
equipment to meet United States military
requirements; or''.
SEC. 6005. MISCELLANEOUS REPEALS.
(a) Repeal of Buy American Requirement for Policy Guidance.--Title
III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly
referred to as the ``Buy American Act'', is amended in section 4(g) (41
U.S.C. 10b-1(g)) by striking out paragraphs (2)(C) and (3).
(b) Repeal of Buy American Reporting Requirement.--Section 9096(b)
of Public Law 102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) is repealed.
(c) Repeal of Studies of Buy American Act Waivers.--Section 306 of
the Trade Agreements Act of 1979 (19 U.S.C. 2516), relating to studies
of certain employment effects and procurement effects of a waiver of
title III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly
referred to as the ``Buy American Act'', is repealed.
TITLE VII--COMMERCIAL ITEMS
Subtitle A--Armed Services Acquisitions
SEC. 7001. ESTABLISHMENT OF NEW CHAPTER IN TITLE 10.
(a) Establishment.--Part IV of subtitle A of title 10, United
States Code, is amended by inserting before chapter 137 the following
new chapter 136:
``CHAPTER 136--PROCUREMENT OF COMMERCIAL ITEMS
``Sec.
``2281. Definitions.
``2282. Preference for acquisition of commercial items.
``2283. Pricing documentation for commercial items.
``2284. Regulations; required terms and conditions.
``2285. Principle of construction with future laws.
``2286. Inapplicability of certain provisions of law.''.
(b) Clerical Amendment.--The tables of chapters at the beginning of
subtitle A of title 10, United States Code, and the beginning of part
IV of such subtitle are amended by inserting before the item relating
to chapter 137 the following new item:
``136. Procurement of Commercial Items...................... 2281''.
SEC. 7002. DEFINITIONS.
Chapter 136 of title 10, United States Code, as added by section
7001, is amended by adding after the table of sections the following:
``Sec. 2281. Definitions
``In this chapter:
``(1) The term `commercial item' means any of the
following:
``(A) Any item of a type customarily used in the
course of normal business operations for other than
Federal Government purposes, that--
``(i) has been sold, leased, or licensed to
the general public or to domestic State or
local government entities; or
``(ii) has been offered for sale, lease, or
license to the general public or to domestic
State or local government entities.
``(B) An item intended to be used in the course of
normal business operations for other than Federal
Government purposes that is not yet available in the
commercial marketplace, but will be available in the
commercial marketplace in time to satisfy the delivery
requirements under a Federal Government solicitation.
``(C) Any item that, but for--
``(i) modifications of a type customarily
available in the commercial marketplace, or
``(ii) minor modifications made to meet
Federal Government requirements,
would satisfy the criteria in subparagraph (A) or (B).
``(D) Any combination of items meeting the
requirements of subparagraph (A), (B), or (C) that are
of a type customarily combined and sold in combination
to the general public.
``(E) Services offered and sold competitively, in
significant quantities, in the commercial marketplace
at established catalog prices or standard rates and
under standard commercial terms and conditions.
``(F) Any item, combination of items, or service
referred to in subparagraphs (A) through (E),
notwithstanding the fact that the item, combination of
items, or service is transferred between or among
separate divisions, subsidiaries, or affiliates of a
contractor.
``(2) The term `nondevelopmental item' means any of the
following:
``(A) Any previously developed item of supply that
is in use by a department or agency of the United
States, a State or local government, or a foreign
government with which the United States has a mutual
defense cooperation agreement.
``(B) Any item of supply described in subparagraph
(A) that requires only minor modification or
modification of the type customarily available in the
commercial marketplace in order to meet the
requirements of the procuring department or agency.
``(C) Any item of supply currently being produced
that does not meet the requirements of subparagraph (A)
or (B) solely because the item--
``(i) is not yet in use; or
``(ii) is not yet available in the
commercial marketplace.
``(3) The term `component' means any item supplied to the
Federal Government as part of an end item or of another
component.
``(4) The term `commercial component' means any component
that is a commercial item.
``(5) The term `head of an agency' means the Secretary of
Defense, the Secretary of Transportation, and the Administrator
of the National Aeronautics and Space Administration.
``(6) The term `agency' means the Department of Defense,
the Coast Guard, and the National Aeronautics and Space
Administration.''.
SEC. 7003. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.
(a) In General.--Chapter 136 of title 10, United States Code, as
amended by section 7002, is further amended by adding after section
2281 the following new section:
``Sec. 2282. Preference for acquisition of commercial items
``(a) Preference.--(1) The head of an agency shall ensure that, to
the maximum extent practicable--
``(A) requirements of the agency with respect to a
procurement of supplies are stated in terms of--
``(i) functions to be performed,
``(ii) performance required, or
``(iii) essential physical characteristics;
``(B) such requirements are defined so that commercial
items may be procured to fulfill such requirements; and
``(C) such requirements are fulfilled through the
procurement of commercial items.
``(2) The head of an agency shall ensure that, to the maximum
extent practicable, requirements of the agency with respect to a
procurement of supplies are defined so that nondevelopmental items may
be procured to fulfill such requirements in any case in which
commercial items that fulfill the requirements of the agency are not
available.
``(b) Implementation.--The head of each agency shall ensure that
procurement officials in the agency, to the maximum extent
practicable--
``(1) acquire commercial items to meet the needs of the
agency;
``(2) require prime contractors and subcontractors at all
levels under the contracts of the agency to incorporate
commercial items as components of items supplied to the agency;
``(3) modify requirements in appropriate cases to ensure
that the requirements can be met by commercial items;
``(4) state specifications in terms that enable and
encourage bidders and offerors to supply commercial items in
response to the solicitations of the agency;
``(5) revise the procurement policies, practices, and
procedures of the agency that are not required by law to reduce
any impediments in those policies, practices, and procedures to
the acquisition of commercial items; and
``(6) require training of appropriate personnel in the
acquisition of commercial items.
``(c) Existing or Prior Sources of Nondevelopmental Items.--(1)
Notwithstanding subsection (a), the Secretary of Defense, the Secretary
of a military department, or the head of a Defense Agency may, until
five years after the date of the enactment of the Federal Acquisition
Improvement Act of 1994, determine that it is in the Government's
interests to permit existing or prior sources of nondevelopmental items
to participate in a competition for a commercial item in a case in
which a nondevelopmental item will compete with a commercial item under
the same terms, conditions, and evaluation and award criteria.
``(2) Nondevelopmental items furnished by an existing or prior
source that must be modified to meet the requirements of a solicitation
for commercial items may be offered under such a solicitation, but only
in a case in which the modifications--
``(A) are necessary to comply with the Government's
solicitation requirements; and
``(B) do not significantly alter the function or essential
physical characteristics of the items to be supplied.
``(3) The policies, procedures, solicitation provisions, and
contract clauses applicable to commercial items under this chapter also
shall apply to nondevelopmental items furnished by an existing or prior
source that is permitted to participate in a competition conducted
under this title.
``(d) Preliminary Market Research.--(1) The head of an agency shall
conduct market research appropriate to the circumstances--
``(A) before developing new specifications for a
procurement by the agency; and
``(B) before soliciting bids or proposals for a contract in
excess of the simplified acquisition threshold.
``(2) The head of the agency shall use the results of market
research to determine whether there are commercial items available
that--
``(A) meet the requirements of the agency;
``(B) could be modified to meet such requirements; or
``(C) could meet such requirements if those requirements
were modified to a reasonable extent.''.
(b) Repeal of Superseded Provision.--Section 2325 of title 10,
United States Code, is repealed. The table of sections at the beginning
of chapter 137 of such title is amended by striking out the item
relating to section 2325.
SEC. 7004. PRICING DOCUMENTATION FOR COMMERCIAL ITEMS.
(a) In General.--Chapter 136 of title 10, United States Code, as
amended by section 7003, is further amended by adding after section
2282 the following new section:
``Sec. 2283. Pricing documentation for commercial items
``(a) Requirement for Determination of Price Reasonableness.--(1)
When the price of a commercial item is based on adequate price
competition or on established catalog or market prices of items sold in
sufficient quantities to the general public, the contracting officer
shall presume that the price contained in the most advantageous
evaluated offer (price and all other factors considered) received in
response to a solicitation, or a price based on established catalog or
market prices, is fair and reasonable unless the contracting officer
has information that the price is not fair and reasonable. Before the
award of a contract for which price is based on catalog or market
prices, the contracting officer shall make reasonable efforts to
establish the currency and accuracy of such prices.
``(2) When the price of a commercial item is not presumed fair and
reasonable under paragraph (1), the contracting officer shall use price
analysis to determine whether the price is fair and reasonable.
``(3) When required by the contracting officer before award of a
contract or contract definitization, the offeror shall promptly furnish
documentation, in the form regularly maintained in commercial
operations, adequate to demonstrate the market price of the item or
items or otherwise needed to establish a fair and reasonable price. All
documentation received from an offeror, if not otherwise in the public
domain and if requested by the offeror and marked as proprietary, shall
be treated by the Government as confidential and exempt from disclosure
to the extent permitted by section 552 of title 5. In this paragraph,
the term `contract definitization' means agreement to contractual
terms, specifications, and price.
``(4) In any case in which a contracting officer is able to
determine under paragraph (1) or (2) that a price is reasonable, the
procurement shall be exempt from section 2306a of this title.
``(5) In any case in which a contracting officer is unable to
determine under paragraph (1) or (2) that a price is reasonable, the
contracting officer may require cost or pricing data under section
2306a of this title.
``(b) Government's Right To Audit.--(1) The United States shall
have the right to audit all documentation provided by an offeror under
subsection (a)(3) and all books and records of the offeror directly
relating to such documentation, except that, if the offeror has made no
representation as to the completeness of the documentation supplied,
the United States shall have no right to audit for completeness. When
contract price is established under this section, the United States
shall have no audit rights other than those set out in this subsection.
``(2) The right under this subsection shall expire--
``(A) one year after the date of commencement of
performance of the contract, or one year after the date of
commencement of performance of the modification of the
contract, with respect to which the information was provided;
or
``(B) on such other date agreed upon by the parties at the
time of contract award or contract definitization.''.
(b) Cross Reference.--Section 2306a of title 10, United States
Code, is amended by adding at the end the following new subsection:
``(h) Additional Exceptions Regarding Commercial Items.--For
provisions relating to additional exceptions for procurements of
commercial items, see section 2283 of this title.''.
SEC. 7005. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.
(a) In General.--Chapter 136 of title 10, United States Code, as
amended by section 7004, is further amended by adding after section
2283 the following new section:
``Sec. 2284. Regulations; required terms and conditions
``(a) In General.--The head of each agency shall prescribe
regulations to implement this chapter in that agency. Such regulations
shall be developed in consultation with the Administrator for Federal
Procurement Policy. The regulations shall include provisions
implementing the preference for commercial items set out in section
2282 of this title.
``(b) Terms and Conditions.--The regulations prescribed under
subsection (a) shall contain a set or sets of terms and conditions to
be included in contracts for the acquisition of commercial items. Such
terms and conditions shall, to the maximum extent practicable, include
only those contract clauses that are determined by the head of the
agency to be--
``(1) required to implement provisions of law applicable to
commercial item acquisitions; or
``(2) consistent with standard commercial practice.
``(c) Terms and Conditions for Components.--Such regulations shall
provide that a prime contractor furnishing commercial items or items
other than commercial items as items or components shall not be
required to apply to any of its divisions, subsidiaries, or affiliates
or any of its subcontractors or suppliers that are furnishing
commercial items as components any clause, term, or condition except
those determined by the head of the agency to be--
``(1) required to implement provisions of law applicable to
subcontractors furnishing commercial items; or
``(2) determined to be consistent with standard commercial
practice.
``(d) Market Acceptance.--The regulations prescribed under
subsection (a) shall provide that, under appropriate conditions, the
head of the agency may require an offeror to demonstrate, as a
condition for being considered responsive, that the items offered meet,
among other criteria, market acceptance criteria, unless such item has
been satisfactorily supplied to an executive agency under current or
recent contracts for the same or similar requirements.
``(e) Use of Fixed Price Contracts.--The regulations prescribed
under subsection (a) shall include a requirement that firm, fixed price
contracts, or fixed price contracts with economic price adjustment
provisions, be used for the acquisition of commercial items and
components.
``(f) Term of Contracts.--The regulations prescribed under
subsection (a) shall provide that, to the extent practicable, contracts
for acquisition of commercial items shall not require contract
performance for a term longer than customary industry practice for the
item being acquired. A contracting officer may include in a contract
provisions for economic price adjustment if an extended period of
performance under the contract cannot be avoided.
``(g) Contract Quality Requirements.--The regulations prescribed
under subsection (a) shall include provisions that--
``(1) permit, to the maximum extent practicable, a
contractor under a commercial items acquisition to use the
existing quality assurance system of the contractor as a
substitute for compliance with an otherwise applicable
requirement for the Government to inspect or test the
commercial items before the contractor's tender of those items
for acceptance by the Government;
``(2) require that, to the maximum extent practicable, the
head of the agency take advantage of warranties (including
extended warranties) offered by offerors of commercial items
and use such warranties for the repair and replacement of
commercial items; and
``(3) set forth guidance regarding the use of past
performance of commercial items and sources as a factor in
contract award decisions.''.
(b) Defense Contract Clauses.--
(1) Repeal of dod authority.--Section 824(b) of the
National Defense Authorization Act for Fiscal Years 1990 and
1991 (Public Law 101-189; 10 U.S.C. 2325 note) is repealed.
(2) Savings provision.--Notwithstanding subsections (b) and
(c) of section 2284 of title 10, U.S.C., as added by subsection
(a), a contract of the Department of Defense entered into
before October 1, 1994, and a subcontract entered into before
such date under such a contract, may include clauses developed
pursuant to paragraphs (2) and (3) of section 824(b) of the
National Defense Authorization Act for Fiscal Years 1990 and
1991 (Public Law 101-189; 10 U.S.C. 2325 note).
SEC. 7006. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.
Chapter 136 of title 10, United States Code, as amended by section
7005, is further amended by adding after section 2284 the following new
section:
``Sec. 2285. Principle of construction with future laws
``A provision of law enacted after the date of the enactment of the
Federal Acquisition Improvement Act of 1994 may not be construed as
modifying or superseding any provision of this chapter unless that
provision of law specifically refers to this section and specifically
states that such provision of law modifies or supersedes such provision
of this chapter.''.
SEC. 7007. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.
(a) Inapplicable Provisions.--Chapter 136 of title 10, United
States Code, as amended by section 7006, is further amended by adding
after section 2285 the following new section:
``Sec. 2286. Inapplicability of certain provisions of law
``(a) Provisions Inapplicable to Prime Contractors.--The following
provisions of law (and regulations prescribed under such provisions)
shall not apply to any contract entered into by an agency for the
procurement of a commercial item:
``(1) Section 2306(b) of this title (relating to
prohibition on contingent fees).
``(2) Section 2320 of this title (relating to rights in
technical data).
``(3) Section 2321 of this title (relating to validation of
proprietary data restrictions).
``(4) Section 2324 of this title (relating to allowable
costs).
``(5) Section 2384(b) of this title (relating to
requirement to identify suppliers and sources of supplies).
``(6) Section 2393(d) of this title (relating to
prohibition against doing business with certain offerors or
contractors).
``(7) Section 2402 of this title (relating to prohibition
on limitation of subcontractor direct sales).
``(8) Section 2408(a) of this title (relating to
prohibition on persons convicted of defense contract-related
felonies).
``(9) Section 2410b of this title (relating to contractor
inventory accounting system standards).
``(10) Section 843 of Public Law 103-160 (107 Stat. 1720)
(relating to reports of defense contractors of dealings with
terrorist countries).
``(11) Section 26 of the Office of Federal Procurement
Policy Act (41 U.S.C. 422) (relating to cost accounting
standards board).
``(12) Section 27(e) of the Office of Federal Procurement
Policy Act (41 U.S.C. 423(e)) (relating to procurement
integrity).
``(13) The Drug-Free Workplace Act of 1988 (subtitle D of
title V of Public Law 100-690; 41 U.S.C. 701 et seq.).
``(b) Provisions Inapplicable to Subcontractors and Other
Entities.--
``(1) Laws inapplicable.--The following provisions of law
(and regulations prescribed under such provisions) shall not
apply to any entity described in paragraph (2):
``(A) Each provision of law listed under subsection
(a).
``(B) Sections 2533 and 2534 of this title
(relating to goods which are other than American
goods).
``(C) The Act of March 3, 1933, commonly referred
to as the `Buy American Act' (41 U.S.C. 10a-10c).
``(2) Covered entities.--Paragraph (1) applies to each of
the following:
``(A) Any division, subsidiary, or affiliate of a
prime contractor (other than the division, subsidiary,
or affiliate that is contracting with the Government
under the prime contract) or of a subcontractor of a
prime contractor, if such division, subsidiary, or
affiliate is furnishing a commercial item to the prime
contractor or subcontractor for purposes of carrying
out the prime contract or subcontract.
``(B) Any subcontractor or supplier of a prime
contractor, if the subcontractor or supplier is
furnishing a commercial item to the prime contractor
for purposes of carrying out the prime contract.
``(c) Definition.--In this section, the term `prime contractor'
means a person under contract directly with the Department of
Defense.''.
SEC. 7008. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN
PROVISIONS OF LAW.
(a) Inapplicability of Requirement for Contract Clause Regarding
Contingent Fees.--Section 2306(b) of title 10, United States Code, as
amended by section 4032(a), is further amended by inserting before the
period at the end of the sentence added by section 4032(a) the
following: ``or to a contract for the acquisition of commercial
items''.
(b) Inapplicability of Regulations on Rights in Technical Data.--
Section 2320 of title 10, United States Code, is amended by adding at
the end the following new subsection:
``(e) The regulations prescribed under subsection (a) shall not
apply to contracts for the purchase of commercial items (as defined in
section 2281 of this title).''.
(c) Inapplicability of Requirement for Validation of Proprietary
Data Restrictions.--Section 2321(a) of title 10, United States Code, is
amended by inserting before the period at the end the following: ``,
other than a contract for supplies or services that are commercial
items (as defined in section 2281 of this title)''.
(d) Inapplicability of Requirement To Identify Suppliers and
Sources of Supplies.--Paragraph (2) of section 2384(b) of title 10,
United States Code, is amended to read as follows:
``(2) The regulations prescribed pursuant to paragraph (1) do not
apply to a contract that requires the delivery of supplies that are
commercial items, as defined in section 2281 of this title.''.
(e) Inapplicability of Prohibition Against Doing Business with
Certain Offerors or Contractors.--Section 2393(d) of title 10, United
States Code, as amended by section 4032(d), is further amended by
adding at the end the following: ``The requirement shall not apply in
the case of a subcontract for the acquisition of commercial items (as
defined in section 2281 of this title).''.
(f) Inapplicability of Prohibition on Limitation of Subcontractor
Direct Sales.--Section 2402 of title 10, United States Code, as amended
by section 4032(e), is further amended by adding at the end the
following new subsection:
``(d)(1) An agreement between the contractor in a contract for the
acquisition of commercial items and a subcontractor under such contract
that restricts sales by such subcontractor directly to persons other
than the contractor may not be considered to unreasonably restrict
sales by that subcontractor to the United States in violation of the
provision included in such contract pursuant to subsection (a) if the
agreement does not result in the United States being treated
differently with regard to the restriction than any other prospective
purchaser of such commercial items from that subcontractor.
``(2) In paragraph (1), the term `commercial item' has the meaning
given such term in section 2281 of this title.''.
(g) Inapplicability of Prohibition on Persons Convicted of Defense-
Related Felonies.--Section 2408(a) of title 10, United States Code, is
amended by adding at the end of paragraph (4), as added by section
4032(f), the following: ``The term does not include a contract for the
purchase of commercial items (as defined in section 2281 of this
title).''.
(h) Inapplicability of Contractor Inventory Accounting System
Standards.--Section 2410b of title 10, United States Code, is amended
by adding after subsection (b), as added by section 4032(g), the
following:
``(c) The regulations prescribed pursuant to subsection (a) shall
not apply to a contract for the purchase of commercial items (as
defined in section 2281 of this title).''.
Subtitle B--Civilian Agency Acquisitions
SEC. 7011. DEFINITIONS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1554, is further
amended by adding after section 314 the following new section:
``SEC. 315. DEFINITIONS RELATING TO PROCUREMENT OF COMMERCIAL ITEMS.
``As used in this title:
``(1) The term `commercial item' means any of the
following:
``(A) Any item of a type customarily used in the
course of normal business operations for other than
Federal Government purposes, that--
``(i) has been sold, leased, or licensed to
the general public or to domestic State or
local government entities; or
``(ii) has been offered for sale, lease, or
license to the general public or to domestic
State or local government entities.
``(B) An item intended to be used in the course of
normal business operations for other than Federal
Government purposes that is not yet available in the
commercial marketplace, but will be available in the
commercial marketplace in time to satisfy the delivery
requirements under a Federal Government solicitation.
``(C) Any item that, but for--
``(i) modifications of a type customarily
available in the commercial marketplace, or
``(ii) minor modifications made to meet
Federal Government requirements,
would satisfy the criteria in subparagraph (A) or (B).
``(D) Any combination of items meeting the
requirements of subparagraph (A), (B), or (C) that are
of a type customarily combined and sold in combination
to the general public.
``(E) Services offered and sold competitively, in
significant quantities, in the commercial marketplace
at established catalog prices or standard rates and
under standard commercial terms and conditions.
``(F) Any item, combination of items, or service
referred to in subparagraphs (A) through (E),
notwithstanding the fact that the item, combination of
items, or service is transferred between or among
separate divisions, subsidiaries, or affiliates of a
contractor.
``(2) The term `nondevelopmental item' means any of the
following:
``(A) Any previously developed item of supply that
is in use by a department or agency of the United
States, a State or local government, or a foreign
government with which the United States has a mutual
defense cooperation agreement.
``(B) Any item of supply described in subparagraph
(A) that requires only minor modification or
modification of the type customarily available in the
commercial marketplace in order to meet the
requirements of the procuring department or agency.
``(C) Any item of supply currently being produced
that does not meet the requirements of subparagraph (A)
or (B) solely because the item--
``(i) is not yet in use; or
``(ii) is not yet available in the
commercial marketplace.
``(3) The term `component' means any item supplied to the
Federal Government as part of an end item or of another
component.
``(4) The term `commercial component' means any component
that is a commercial item.''.
SEC. 7012. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7011, is further
amended by adding after section 315 the following new section:
``SEC. 315A. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.
``(a) Preference.--(1) The head of each executive agency shall
ensure that, to the maximum extent practicable--
``(A) requirements of the executive agency with respect to
a procurement of supplies are stated in terms of--
``(i) functions to be performed,
``(ii) performance required, or
``(iii) essential physical characteristics;
``(B) such requirements are defined so that commercial
items may be procured to fulfill such requirements; and
``(C) such requirements are fulfilled through the
procurement of commercial items.
``(2) The head of an agency shall ensure that, to the maximum
extent practicable, requirements of the agency with respect to a
procurement of supplies are defined so that nondevelopmental items may
be procured to fulfill such requirements in any case in which
commercial items that fulfill the requirements of the agency are not
available.
``(b) Implementation.--The head of each executive agency shall
ensure that procurement officials in that executive agency, to the
maximum extent practicable--
``(1) acquire commercial items to meet the needs of the
executive agency;
``(2) require prime contractors and subcontractors at all
levels under the executive agency contracts to incorporate
commercial items as components of items supplied to the
executive agency;
``(3) modify requirements in appropriate cases to ensure
that the requirements can be met by commercial items;
``(4) state specifications in terms that enable and
encourage bidders and offerors to supply commercial items in
response to the solicitations of the executive agency;
``(5) revise the procurement policies, practices, and
procedures of the executive agency that are not required by law
to reduce any impediments in those policies, practices, and
procedures to the acquisition of commercial items; and
``(6) require training of appropriate personnel in the
acquisition of commercial items.
``(c) Existing or Prior Sources of Nondevelopmental Items.--(1)
Notwithstanding subsection (a), the head of an executive agency may,
until five years after the date of the enactment of the Federal
Acquisition Improvement Act of 1994, determine that it is in the
Government's interests to permit existing or prior sources of
nondevelopmental items to participate in a competition for a commercial
item in a case in which a nondevelopmental item will compete with a
commercial item under the same terms, conditions, and evaluation and
award criteria.
``(2) Nondevelopmental items furnished by an existing or prior
source that must be modified to meet the requirements of a solicitation
for commercial items may be offered under such a solicitation, but only
in a case in which the modifications--
``(A) are necessary to comply with the Government's
solicitation requirements; and
``(B) do not significantly alter the function or essential
physical characteristics of the items to be supplied.
``(3) The policies, procedures, solicitation provisions, and
contract clauses applicable to commercial items under this chapter also
shall apply to nondevelopmental items furnished by an existing or prior
source that is permitted to participate in a competition conducted
under this title.
``(d) Preliminary Market Research.--(1) The head of an executive
agency shall conduct market research appropriate to the circumstances--
``(A) before developing new specifications for a
procurement by that executive agency; and
``(B) before soliciting bids or proposals for a contract in
excess of the simplified acquisition threshold.
``(2) The head of an executive agency shall use the results of
market research to determine whether there are commercial items
available that--
``(A) meet the requirements of the executive agency;
``(B) could be modified to meet such requirements; or
``(C) could meet such requirements if those requirements
were modified to a reasonable extent.''.
SEC. 7013. PRICING DOCUMENTATION FOR COMMERCIAL ITEMS.
(a) In General.--Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended
by section 7012, is further amended by adding after section 315A the
following new section:
``SEC. 315B. PRICING DOCUMENTATION FOR COMMERCIAL ITEMS.
``(a) Requirement for Determination of Price Reasonableness.--(1)
When the price of a commercial item is based on adequate price
competition or on established catalog or market prices of items sold in
sufficient quantities to the general public, the contracting officer
shall presume that the price contained in the most advantageous
evaluated offer (price and all other factors considered) received in
response to a solicitation, or a price based on established catalog or
market prices, is fair and reasonable unless the contracting officer
has information that the price is not fair and reasonable. Before the
award of a contract for which price is based on catalog or market
prices, the contracting officer shall make reasonable efforts to
establish the currency and accuracy of such prices.
``(2) When the price of a commercial item is not presumed fair and
reasonable under paragraph (1), the contracting officer shall use price
analysis to determine whether the price is fair and reasonable.
``(3) When required by the contracting officer before award of a
contract or contract definitization, the offeror shall promptly furnish
documentation, in the form regularly maintained in commercial
operations, adequate to demonstrate the market price of the item or
items or otherwise needed to establish a fair and reasonable price. All
documentation received from an offeror, if not otherwise in the public
domain and if requested by the offeror and marked as proprietary, shall
be treated by the Government as confidential and exempt from disclosure
to the extent permitted by section 552 of title 5. In this paragraph,
the term `contract definitization' means agreement to contractual
terms, specifications, and price.
``(4) In any case in which a contracting officer is able to
determine under paragraph (1) or (2) that a price is reasonable, the
procurement shall be exempt from section 304B of this title.
``(5) In any case in which a contracting officer is unable to
determine under paragraph (1) or (2) that a price is reasonable, the
contracting officer may require cost or pricing data under section
304B.
``(b) Government's Right To Audit.--(1) The United States shall
have the right to audit all documentation provided by an offeror under
subsection (a)(3) and all books and records of the offeror directly
relating to such documentation, except that, if the offeror has made no
representation as to the completeness of the documentation supplied,
the United States shall have no right to audit for completeness. When
contract price is established under this section, the United States
shall have no audit rights other than those set out in this subsection.
``(2) The right under this subsection shall expire--
``(A) one year after the date of commencement of
performance of the contract, or one year after the date of
commencement of performance of the modification of the
contract, with respect to which the information was provided;
or
``(B) on such other date agreed upon by the parties at the
time of contract award or contract definitization.''.
(b) Cross Reference.--Section 304B of the Federal Property and
Administrative Services Act of 1949, as added by section 1251, is
amended by adding at the end the following new subsection:
``(h) Additional Exceptions Regarding Commercial Items.--For
provisions relating to additional exceptions for procurements of
commercial items, see section 315B of this title.''.
SEC. 7014. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7013, is further
amended by adding after section 315B the following new section:
``SEC. 315C. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.
``(a) In General.--The Administrator for Federal Procurement Policy
shall prescribe regulations to implement sections 315 through 315E. The
regulations shall include provisions implementing the preference for
commercial items set out in section 315A.
``(b) Terms and Conditions.--The regulations prescribed under
subsection (a) shall contain a set or sets of terms and conditions to
be included in contracts for the acquisition of commercial end items.
Such terms and conditions shall, to the maximum extent practicable,
include only those contract clauses that are determined by the agency
head to be--
``(1) required to implement provisions of law applicable to
commercial item acquisitions; or
``(2) consistent with standard commercial practice.
``(c) Terms and Conditions for Components.--Such regulations shall
provide that a prime contractor furnishing commercial items or items
other than commercial items as items or components shall not be
required to apply to any of its divisions, subsidiaries, or affiliates
or any of its subcontractors or suppliers that are furnishing
commercial items as components any clause, term, or condition except
those determined by the head of the agency to be--
``(1) required to implement provisions of law applicable to
subcontractors furnishing commercial items; or
``(2) determined to be consistent with standard commercial
practice.
``(d) Market Acceptance.--The regulations prescribed under
subsection (a) shall provide that, under appropriate conditions, the
agency head may require an offeror to demonstrate, as a condition for
being considered responsive, that the items offered meet, among other
criteria, market acceptance criteria, unless such item has been
satisfactorily supplied to an executive agency under current or recent
contracts for the same or similar requirements.
``(e) Use of Fixed Price Contracts.--The regulations prescribed
under subsection (a) shall include a requirement that firm, fixed price
contracts, or fixed price contracts with economic price adjustment
provisions, be used for the acquisition of commercial items and
components.
``(f) Term of Contracts.--The regulations prescribed under
subsection (a) shall provide that, to the extent practicable, contracts
for acquisition of commercial items shall not require contract
performance for a term longer than customary industry practice for the
item being acquired. A contracting officer may include in a contract
provisions for economic price adjustment if an extended period of
performance under the contract cannot be avoided.
``(g) Contract Quality Requirements.--The regulations prescribed
under subsection (a) shall include provisions that--
``(1) permit, to the maximum extent practicable, a
contractor under a commercial items acquisition to use the
existing quality assurance system of the contractor as a
substitute for compliance with an otherwise applicable
requirement for the Government to inspect or test the
commercial items before the contractor's tender of those items
for acceptance by the Government;
``(2) require that, to the maximum extent practicable, the
executive agency take advantage of warranties (including
extended warranties) offered by offerors of commercial items
and use such warranties for the repair and replacement of
commercial items; and
``(3) set forth guidance regarding the use of past
performance of commercial items and sources as a factor in
contract award decisions.''.
SEC. 7015. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7014, is further
amended by adding after section 315C the following new section:
``SEC. 315D. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.
``A provision of law enacted after the date of the enactment of the
Federal Acquisition Improvement Act of 1994 may not be construed as
modifying or superseding any provision of sections 315 through 315E
unless that provision of law specifically refers to this section and
specifically states that such provision of law modifies or supersedes
such provision of those sections.''.
SEC. 7016. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.
Title III of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7015, is further
amended by adding after section 315D the following new section:
``SEC. 315E. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.
``(a) Provisions Inapplicable to Prime Contractors.--Procurements
of commercial items shall not be subject to the following provisions of
law (or regulations prescribed under such provisions):
``(1) Section 303G of this Act (relating to prohibition on
limitation of subcontractor direct sales).
``(2) Section 304(a) of this Act (relating to prohibition
on contingent fees).
``(3) Section 26 of the Office of Federal Procurement
Policy Act (41 U.S.C. 422) (relating to cost accounting
standards board).
``(4) Section 27(e) of the Office of Federal Procurement
Policy Act (41 U.S.C. 423(e)) (relating to procurement
integrity).
``(5) The Drug-Free Workplace Act of 1988 (subtitle D of
title V of Public Law 100-690; 41 U.S.C. 701 et seq.).
``(b) Provisions Inapplicable to Subcontractors and Other
Entities.--
``(1) Laws inapplicable.--The following provisions of law
(and regulations prescribed under such provisions) shall not
apply to any entity described in paragraph (2):
``(A) Each provision of law listed under subsection
(a).
``(B) The Act of March 3, 1933, commonly referred
to as the `Buy American Act' (41 U.S.C. 10a-10c).
``(2) Covered entities.--Paragraph (1) applies to each of
the following:
``(A) Any division, subsidiary, or affiliate of a
prime contractor (other than the division, subsidiary,
or affiliate that is contracting with the Government
under the prime contract) or of a subcontractor of a
prime contractor, if such division, subsidiary, or
affiliate is furnishing a commercial item to the prime
contractor or subcontractor for purposes of carrying
out the prime contract or subcontract.
``(B) Any subcontractor or supplier of a prime
contractor, if the subcontractor or supplier is
furnishing a commercial item to the prime contractor
for purposes of carrying out the prime contract.
``(c) Definition.--In this section, the term `prime contractor'
means a person under contract directly with the Federal Government,
other than the Department of Defense.''.
SEC. 7017. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN
PROVISIONS OF LAW.
(a) Inapplicability of Prohibition on Limiting Subcontractor Direct
Sales to the United States.--Section 303G of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253g), as amended by
section 4042(a), is further amended by adding at the end the following
new subsection:
``(d) An agreement between the contractor in a contract for the
acquisition of commercial items and a subcontractor under such contract
that restricts sales by such subcontractor directly to persons other
than the contractor may not be considered to unreasonably restrict
sales by that subcontractor to the United States in violation of the
provision included in such contract pursuant to subsection (a) if the
agreement does not result in the Federal Government being treated
differently with regard to the restriction than any other prospective
purchaser of such commercial items from that subcontractor.''.
(b) Inapplicability of Requirement for Contract Clause Regarding
Contingent Fees.--Section 304(a) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 254(a)), as amended by
section 4042(b), is further amended by inserting before the period at
the end of the sentence added by section 4042(b) the following: ``or to
a contract for the acquisition of commercial items''.
Subtitle C--Acquisitions Generally
SEC. 7021. CONFORMING AMENDMENT RELATING TO INAPPLICABILITY OF CERTAIN
PROVISIONS OF LAW.
Section 5152 of the Drug-Free Workplace Act of 1988 (subtitle D of
title V of Public Law 100-690; 41 U.S.C. 701 et seq.), as amended by
section 4054, is further amended by inserting after the matter inserted
by such section 4057 the following: ``, other than a contract for the
procurement of commercial items (as defined, as applicable, in section
315 of the Federal Property and Administrative Services Act of 1949 or
section 2281 of title 10, United States Code),''.
SEC. 7022. FLEXIBLE DEADLINES FOR SUBMISSION OF OFFERS OF COMMERCIAL
ITEMS.
Section 18(a) of the Office of Federal Procurement Policy Act (41
U.S.C. 416(a)) is amended in paragraph (4) (as added by section
4013(b))--
(1) by inserting ``(A)'' after ``(4)''; and
(2) by adding at the end the following new subparagraph:
``(B) The requirements of paragraph (3)(B) shall not apply to bids
or proposals for contracts for the purchase of commercial items, as
defined in section 4(12) of this Act. The Administrator shall
promulgate regulations establishing appropriate time limits (but not
less than 5 working days) for the submission of such bids or proposals
in response to the notice required by paragraph (1)(A).''.
SEC. 7023. ADDITIONAL RESPONSIBILITIES FOR ADVOCATES FOR COMPETITION.
Section 20(c) of the Office of Federal Procurement Policy Act (41
U.S.C. 418(c)) is amended to read as follows:
``(c) The advocate for competition for each procuring activity
shall be responsible for promoting full and open competition, promoting
the acquisition of commercial items and other nondevelopmental items,
and challenging barriers to such acquisition, including such barriers
as unnecessarily restrictive statements of need, unnecessarily detailed
specifications, and unnecessarily burdensome contract clauses.''.
SEC. 7024. PROVISIONS NOT AFFECTED.
Nothing in this title shall be construed as modifying or
superseding, or intending to impair or restrict authorities or
responsibilities under, any of the following provisions of law:
(1) Section 2323 of title 10, United States Code.
(2) Section 8(a) of the Small Business Act (15 U.S.C.
637(a)).
(3) Title IX of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 541 et seq.), popularly
referred to as the ``Brooks Architect-Engineers Act''.
(4) Section 111 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759), popularly referred to as
the ``Brooks Automatic Data Processing Act''.
(5) The Act of June 25, 1938 (41 U.S.C. 46-48c), that was
revised and reenacted in the Act of June 23, 1971 (85 Stat.
77), popularly referred to as the ``Javits-Wagner-O'Day Act''.
SEC. 7025. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERNMENT USE OF
MARKET RESEARCH.
(a) Report Required.--Not later than two years after the date of
the enactment of this Act, the Comptroller General of the United States
shall submit to the Congress a report on the use of market research by
the Federal Government in support of the procurement of commercial
items and nondevelopmental items.
(b) Content of Report.--The report shall include the following:
(1) A review of existing Federal Government market research
efforts to gather data concerning commercial and other
nondevelopmental items.
(2) A review of the feasibility of creating a Government-
wide data base for storing, retrieving, and analyzing market
data, including use of existing Federal Government resources.
(3) Any recommendations for changes in law or regulations
that the Comptroller General considers appropriate.
TITLE VIII--MISCELLANEOUS PROVISIONS
SEC. 8001. EDUCATION AND TRAINING.
Section 6(d)(5) of the Office of Federal Procurement Policy Act (41
U.S.C. 405(d)(4)) is amended--
(1) by striking out ``and'' at the end of subparagraph (A);
(2) by striking out the semicolon at the end of
subparagraph (B) and inserting in lieu thereof ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) establish policies and procedures for the
establishment and implementation of education and
training programs authorized by this Act, including the
establishment and implementation of training, in
conjunction with the General Services Administration,
for critical procurement personnel designed to increase
the participation of small business concerns owned and
controlled by socially and economically disadvantaged
individuals, women, and other minorities in procurement
activities conducted by an executive agency.''.
SEC. 8002. DEPARTMENT OF DEFENSE ACQUISITION OF INTELLECTUAL PROPERTY
RIGHTS.
Section 2386 of title 10, United States Code, is amended by
striking out paragraphs (3) and (4) and inserting in lieu thereof the
following:
``(3) Technical data and computer software.
``(4) Releases for past infringement of patents or
copyrights or for unauthorized use of technical data or
computer software.''.
SEC. 8003. COOPERATIVE PURCHASING.
Section 201(b) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 481(b)) is amended to read as follows:
``(b)(1) The Administrator may provide any of the services
specified in subsection (a) of this section to any other Federal agency
or mixed ownership corporation (as defined in chapter 91 of title 31,
United States Code).
``(2) The Administrator may provide for the utilization of Federal
supply schedules or other schedule contracts by any of the following
entities upon their request:
``(A) The various States and their political subdivisions,
including local governments, or any department or agency
thereof.
``(B) The District of Columbia and the Commonwealth of
Puerto Rico.
``(C) Indian tribal governments.
``(3) The authorization provided in this subsection shall not be
construed to allow ordering of existing stock or inventory by the
entities listed in paragraph (2) from federally owned and operated, or
federally owned and contractor-operated, supply depots, warehouses, or
similar facilities.''.
SEC. 8004. SENSE OF CONGRESS ON NEGOTIATED RULEMAKING.
(a) Findings.--The Congress finds the following:
(1) The use of negotiated rulemaking or similar policy
discussion group techniques is an appropriate tool for--
(A) fostering effective implementation of, and
compliance with, laws and regulations;
(B) avoiding litigation; and
(C) achieving more productive and equitable
relationships between the Federal Government and the
regulated segments of the private sector.
(2) The use of negotiated rulemaking or similar techniques
in Federal procurement regulations could be appropriate given
the extreme complexity and intricate interactions between buyer
and seller in Federal procurements.
(b) Sense of Congress.--It is the sense of Congress that, in
prescribing acquisition regulations, the Federal Acquisition Regulatory
Council should consider using negotiated rulemaking procedures in
accordance with sections 561 through 570 of title 5, United States
Code, or similar techniques intended to achieve the benefits described
in subsection (a)(1).
SEC. 8005. EXTENSION OF DEFENSE ACQUISITION WORKFORCE POLICIES
GOVERNMENT-WIDE.
The Office of Federal Procurement Policy Act (41 U.S.C. 401 et
seq.) is amended by adding at the end the following new section:
``SEC. 30. MANAGEMENT POLICIES.
``(a) Requirement for Government-wide Workforce Policies.--The
Administrator for Federal Procurement Policy shall extend Government-
wide the defense acquisition workforce policies contained in chapter 87
of title 10, United States Code. In extending policies Government-wide,
the Administrator may modify such policies as necessary to recognize
differences between and among defense and nondefense departments and
agencies.
``(b) Designation of Acquisition Positions.--After consultation
with the heads of agencies, the Administrator shall establish policies
and procedures for agency heads to designate acquisition positions and
to manage employees serving in the designated acquisition positions.
Such policies and procedures--
``(1) shall allow agency heads to designate specific
positions or categories of positions as acquisition positions;
and
``(2) shall address accession, education, training, and
career development of employees serving in acquisition
positions.
``(c) Small Agency Needs.--In carrying out this section, the
Administrator shall take due consideration of the needs of small
agencies in formulating and implementing policy and programs under this
section to ensure that the benefits of such policy and programs accrue
to small agencies.
``(d) Uniformity.--(1) Subject to paragraph (2), the Administrator
shall ensure that, to the maximum extent practicable, the acquisition
workforce policies and procedures developed pursuant to this section
are uniform in their implementation throughout the executive agencies.
``(2) With respect to acquisition workforce policies and
procedures, the Department of Defense shall be subject only to the
requirements of chapter 87 of title 10, United States Code.
``(e) Federal Acquisition Institute.--Subject to the authority,
direction and control of the Administrator, the Director of the Federal
Acquisition Institute shall ensure that the policies established under
this section are implemented throughout the Federal Government. The
Administrator for General Services, with the concurrence of the
Administrator for Federal Procurement Policy, may establish such
additional positions in the Federal Acquisition Institute as may be
necessary to carry out the preceding sentence.
``(f) Regulations.--The Administrator shall prescribe such
regulations as may be necessary to carry out the purposes of this
section.''.
SEC. 8006. VENDOR AND EMPLOYEE EXCELLENCE AWARDS.
Section 6(d) of the Office of Federal Procurement Policy Act (41
U.S.C. 405(d)) is amended--
(1) by striking out the period at the end of paragraph (10)
(as redesignated by section 4011(b)(2)) and inserting in lieu
thereof a semicolon; and
(2) by adding at the end the following new paragraphs:
``(11) providing for a Government-wide award to recognize
and promote vendor excellence; and
``(12) providing for a Government-wide award to recognize
and promote excellence in officers and employees of the Federal
Government serving in procurement-related positions.''.
SEC. 8007. DEPARTMENT OF DEFENSE REVIEW OF ANTITRUST CASES WITH
NATIONAL SECURITY IMPLICATIONS.
(a) In General.--Subchapter II of chapter 148 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 2508. Antitrust cases with national security implications:
Secretary of Defense review
``(a) Review.--The Secretary of Defense shall conduct a review of
any proposed acquisition of a business concern that is a critical
United States defense supplier with respect to which the Attorney
General or the Federal Trade Commission receives notice under the
antitrust laws. In conducting such review, the Secretary shall assess
the likely effect of the proposed acquisition (if carried out) on the
policy objectives for the national technology and industrial base (as
set forth in section 2501(a) of this title) and on such other
considerations relating to national security as the Secretary considers
appropriate.
``(b) Communication of Views of Secretary.--In any case in which
the Secretary determines, as the result of a review and assessment
under subsection (a), that a proposed acquisition is likely to have an
appreciable effect (whether positive or negative) on the policy
objectives for the national technology and industrial base or on other
considerations relevant to national security (as determined by the
Secretary), the Secretary shall immediately communicate that
determination, in writing, to the Attorney General and the Federal
Trade Commission. The Secretary shall include in such communication the
Secretary's evaluation concerning the proposed acquisition.
``(c) Definition.--In this section, the term `critical United
States defense supplier' means a company organized under the laws of
the United States that is--
``(1) a contractor or critical subcontractor for a major
system, as defined in section 2302(9) of this title;
``(2) a contractor for a contract awarded to a particular
source pursuant to paragraph (3) of section 2304(c) of this
title for the reasons described in clause (A) of that
paragraph; or
``(3) in such other category as the Secretary of Defense
may prescribe by regulation as being critical to the national
technology and industrial base.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such subchapter is amended by adding at the end the following new item:
``2508. Antitrust cases with national security implications: Secretary
of Defense review.''.
SEC. 8008. TECHNICAL AND CLERICAL AMENDMENTS.
(a) Table of Contents Amendments.--
(1) Office of federal procurement policy act.--Section 1 of
the Office of Federal Procurement Policy Act (41 U.S.C. 401
note) is amended to read as follows:
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This Act may be cited as the `Office of Federal
Procurement Policy Act'.
``(b) Table of Contents.--The table of contents for this Act is as
follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Declaration of policy.
``Sec. 3. Findings and purpose.
``Sec. 4. Definitions.
``Sec. 4A. Simplified acquisition threshold.
``Sec. 4B. Procedures applicable to purchases below micro-purchase
threshold.
``Sec. 5. Office of Federal Procurement Policy.
``Sec. 6. Authority and functions of the Administrator.
``Sec. 7. Administrative powers.
``Sec. 8. Responsiveness to Congress.
``Sec. 9. Effect on existing laws.
``Sec. 10. Effect on existing regulations.
``Sec. 11. Authorization of appropriations.
``Sec. 12. Delegation.
``Sec. 14. Access to information.
``Sec. 15. Tests of innovative procurement methods and procedures.
``Sec. 16. Executive agency responsibilities.
``Sec. 18. Procurement notice.
``Sec. 19. Record requirements.
``Sec. 20. Advocates for competition.
``Sec. 21. Rights in technical data.
``Sec. 22. Publication of proposed regulations.
``Sec. 23. Contracting functions performed by Federal personnel.
``Sec. 24. Travel expenses of Government contractors.
``Sec. 25. Federal Acquisition Regulatory Council.
``Sec. 26. Cost Accounting Standards Board.
``Sec. 27. Procurement integrity.
``Sec. 28. Advocate for the Acquisition of Commercial Products.
``Sec. 29. Federal acquisition computer network (FACNET).
``Sec. 30. Management policies.''.
(2) Federal property and administrative services act of
1949.--Section 1 of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 471 et seq.) is amended to read
as follows:
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This Act may be cited as the `Federal Property
and Administrative Services Act of 1949'.
``(b) Table of Contents.--The table of contents for this Act is as
follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Declaration of policy.
``Sec. 3. Definitions.
``TITLE I--ORGANIZATION
``Sec. 101. General Services Administration.
``Sec. 102. Transfer of affairs of Bureau of Federal Supply.
``Sec. 103. Transfer of affairs of the Federal Works Agency.
``Sec. 104. Records management: Transfer of the National Archives.
``Sec. 106. Redistribution of functions.
``Sec. 107. Transfer of funds.
``Sec. 109. General supply fund.
``Sec. 110. Information Technology Fund.
``Sec. 111. Automatic data processing equipment.
``Sec. 112. Federal information centers.
``TITLE II--PROPERTY MANAGEMENT
``Sec. 201. Procurement, warehousing, and related activities.
``Sec. 202. Property utilization.
``Sec. 203. Disposal of surplus property.
``Sec. 204. Proceeds from transfer or disposition of property.
``Sec. 205. Policies, regulations, and delegations.
``Sec. 206. Surveys, standardization, and cataloging.
``Sec. 207. Applicability of antitrust laws.
``Sec. 208. Employment of personnel.
``Sec. 209. Civil remedies and penalties.
``Sec. 210. Operation of buildings and related activities.
``Sec. 211. Motor vehicle identification and operation.
``Sec. 212. Reports to Congress.
``TITLE III--PROCUREMENT PROCEDURE
``Sec. 301. Declaration of purpose.
``Sec. 302. Application and procurement methods.
``Sec. 302A. Simplified acquisition threshold.
``Sec. 302B. Implementation of FACNET capability.
``Sec. 303. Competition requirements.
``Sec. 303A. Planning and solicitation requirements.
``Sec. 303B. Evaluation and award.
``Sec. 303C. Encouragement of new competition.
``Sec. 303D. Validation of proprietary data restrictions.
``Sec. 303F. Economic order quantities.
``Sec. 303G. Prohibition of contractors limiting subcontractor sales
directly to the United States.
``Sec. 304. Contract requirements.
``Sec. 304A. Multiyear contracts.
``Sec. 304B. Cost or pricing data: truth in negotiations.
``Sec. 304C. Examination of records of contractor.
``Sec. 305. Contract financing.
``Sec. 306. Allowable costs.
``Sec. 307. Administrative determinations and delegations.
``Sec. 309. Definitions.
``Sec. 310. Statutes not applicable.
``Sec. 311. Cooperative agreements for basic, applied, and advanced
research.
``Sec. 312. Assignment and delegation of procurement functions and
responsibilities.
``Sec. 313. Determinations and decisions.
``Sec. 314. Undefinitized contractual actions: restrictions.
``Sec. 315. Definitions relating to procurement of commercial items.
``Sec. 315A. Preference for acquisition of commercial items and other
nondevelopmental items.
``Sec. 315B. Pricing documentation for commercial items.
``Sec. 315C. Regulations on acquisition of commercial items.
``Sec. 315D. Principle of construction with future laws.
``Sec. 315E. Inapplicability of certain provisions of law.
``TITLE IV--FOREIGN EXCESS PROPERTY
``Sec. 401. Disposal of foreign excess property.
``Sec. 402. Methods and terms of disposal.
``Sec. 403. Proceeds; foreign currencies.
``Sec. 404. Miscellaneous provisions.
``TITLE VI--GENERAL PROVISIONS
``Sec. 601. Applicability of existing procedures.
``Sec. 602. Repeal and saving provisions.
``Sec. 603. Authorization for appropriations and transfer of authority.
``Sec. 604. Separability.
``Sec. 605. Effective date.
``TITLE VIII--URBAN LAND UTILIZATION
``Sec. 801. Short title.
``Sec. 802. Declaration of purpose and policy.
``Sec. 803. Disposal of urban lands.
``Sec. 804. Acquisition or change of use of real property.
``Sec. 805. Waiver during national emergency.
``Sec. 806. Definitions.
``TITLE IX--SELECTION OF ARCHITECTS AND ENGINEERS
``Sec. 901. Definitions.
``Sec. 902. Policy.
``Sec. 903. Requests for data on architectural and engineering
services.
``Sec. 904. Negotiation of contracts for architectural and engineering
services.''.
(b) Amendments for Stylistic Consistency.--
(1) Office of federal procurement policy act.--The Office
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is
amended so that the section designation and section heading of
each section of such Act is in the same form and typeface as
the section designation and heading of this section.
(2) Federal property and administrative services act of
1949.--The Federal Property and Administrative Services Act of
1949 (41 U.S.C. 471 et seq.) is amended so that the section
designation and section heading of each section of such Act is
in the same form and typeface as the section designation and
heading of this section.
(c) Repeals of Executed Provisions.--The Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.) is amended--
(1) by striking out section 13; and
(2) by striking out the first section 15.
(d) Cross Reference Corrections.--Section 3552 of title 31, United
States Code, is amended--
(1) by striking out ``section 111(h)'' and inserting in
lieu thereof ``section 111(f)''; and
(2) by striking out ``759(h)'' and inserting in lieu
thereof ``759(f)''.
(e) Consistency of Terminology With Customary Usage.--Section
304(b) of the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 254(b)) is amended by striking out ``per centum'' each place
it appears and inserting in lieu thereof ``percent''.
TITLE IX--EFFECTIVE DATES AND REGULATIONS
SEC. 9001. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), this Act and
the amendments made by this Act shall apply with respect to any
contract for which a solicitation for bid or proposal is issued after--
(1) 30 days have expired after the issuance in final form
of revisions to the Federal Acquisition Regulation pursuant to
section 10002; or
(2) 180 days have expired after the date of the enactment
of this Act;
whichever is earlier.
(b) Specific Effective Dates.--(1) Titles III and VI of this Act,
and the amendments made by such titles, shall take effect on the date
of the enactment of this Act.
(2) Subtitle D of title I of this Act, and the amendments made by
such subtitle (relating to procurement protests), shall apply with
respect to any protest filed after the expiration of the 90-day period
beginning on the date of the enactment of this Act.
SEC. 9002. REGULATIONS.
Not later than 150 days after the date of the enactment of this
Act, the Federal Acquisition Regulation (referred to in section 25(c)
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)))
shall be revised, in final form, to implement this Act and the
amendments made by this Act.
Amend the title so as to read: ``A bill to amend title 10,
United States Code, the Federal Property and Administrative
Services Act of 1949, and the Office of Federal Procurement
Policy Act to improve the Federal acquisition process, and for
other purposes.''.
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Union Calendar No. 303
103d CONGRESS
2d Session
H. R. 2238
[Report No. 103-545, Parts I and II]
_______________________________________________________________________
A BILL
To amend laws relating to Federal procurement, to authorize functions
and activities under the Federal Property and Administrative Services
Act of 1949, and for other purposes.
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June 17, 1994
Reported from the Committee on Armed Services with amendments,
committed to the Committee of the Whole House on the State of the
Union, and ordered to be printed