[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1587 Reported in Senate (RS)]
103d CONGRESS
2d Session
S. 1587
[Report No. 103-259]
To revise and streamline the acquisition laws of the Federal
Government, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 26 (legislative day, October 13), 1993
Mr. Glenn (for himself, Mr. Bingaman, Mr. Levin, Mr. Nunn, Mr. Bumpers,
Mr. Lieberman, Mr. Roth, and Mr. Cohen) introduced the following bill;
which was read twice and referred to the Committee on Governmental
Affairs
November 1 (legislative day, October 13), 1993
Ordered, that if and when reported from the Committee on Governmental
Affairs, the bill be referred to the Committee on Armed Services for
not to exceed 30 session days, with instructions that if the Committee
on Armed Services does not report the bill within that time period,
they be deemed discharged from further consideration of the bill and it
be referred to the Committee on Small Business for not to exceed 20
session days, solely for consideration of title IV of the introduced
bill, with instructions that if the Committee on Small Business does
not report the bill within that time period they be deemed discharged
from further consideration of the bill and it be placed on the calender
May 11 (legislative day, May 2), 1994
Reported by Mr. Glenn, with an amendment; referred to the Committee on
Armed Services pursuant to the order of November 1, 1993
May 12 (legislative day, May 2), 1994
Reported by Mr. Nunn, without amendment, referred to the Committee on
Small Business pursuant to the order of November 1, 1993
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To revise and streamline the acquisition laws of the Federal
Government, 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 Streamlining Act
of 1994''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
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. Establishment or maintenance of alternative sources of
supply.
Sec. 1003. Clarification of approval authority for use of procedures
other than full and open competition.
Sec. 1004. Task order contracts for advisory and assistance services.
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 costs and fees in agency settlement of protests.
Sec. 1017. Two-phase subpart c--kinds of contracts
Sec. 1021. Secretarial determination regarding use of cost type or
incentive contract.
Sec. 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. Establishment or maintenance of alternative sources of
supply.
Sec. 1053. Clarification of approval authority for use of procedures
other than full and open competition.
Sec. 1054. Task order contracts for advisory and assistance services.
Sec. 1055. Acquisition of expert services.
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 costs and fees in agency settlement of protests.
Sec. 1067. Two-phase subpart c--kinds of contracts
Sec. 1071. Agency head determination regarding use of cost type or
incentive contract.
Sec. 1072. Multiyear contracting authority.
Sec. 1073. Severable services contracts crossing fiscal years.
Sec. 1074. Economy Act purchases.
Part III--Acquisitions Generally
Sec. 1091. Policy regarding consideration of contractor past
performance.
Sec. 1092. 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. Limitation on authority to require a submission not
otherwise required.
Sec. 1204. Additional special rules for commercial items.
Sec. 1205. Right of United States to examine contractor records.
Sec. 1206. Required regulations.
Sec. 1207. Consistency of time references.
Sec. 1208. Exception for transfers between divisions, subsidiaries, and
affiliates.
Sec. 1209. 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. Research projects.
Sec. 1302. Elimination of inflexible terminology regarding coordination
and communication of defense research
activities.
Subtitle D--Procurement Protests
Part I--Protests to the Comptroller General
Sec. 1401. Protest defined.
Sec. 1402. Review of protests and effect on contracts pending decision.
Sec. 1403. Decisions on protests.
Sec. 1404. Regulations.
Part II--Protests in the Federal Courts
Sec. 1421. Nonexclusivity of remedies.
Sec. 1422. Jurisdiction of the United States Court of Federal Claims.
Part III--Protests in Procurements of Automatic Data Processing
Sec. 1431. Revocation of delegations of procurement authority.
Sec. 1432. Authority of the General Services Administration Board of
Contract Appeals.
Sec. 1433. Periods for certain actions.
Sec. 1434. Dismissals of protests.
Sec. 1435. Award of costs.
Sec. 1436. Dismissal agreements.
Sec. 1437. Jurisdiction of district courts.
Sec. 1438. Matters to be covered in regulations.
Sec. 1439. Definitions.
Subtitle E--Definitions and Other Matters
Part I--Armed Services Acquisitions
Sec. 1501. Definitions.
Sec. 1502. Delegation of procurement functions.
Sec. 1503. Determinations and decisions.
Sec. 1504. Undefinitized contractual actions: restrictions.
Sec. 1505. Production special tooling and production special test
equipment: contract terms and conditions.
Sec. 1506. Regulations for bids.
Part II--Civilian Agency Acquisitions
Sec. 1551. Definitions.
Sec. 1552. Delegation of procurement functions.
Sec. 1553. Determinations and decisions.
Sec. 1554. Cooperative purchasing.
TITLE II--CONTRACT ADMINISTRATION
Subtitle A--Contract Payment
Part I--Armed Services Acquisitions
Sec. 2001. Contract financing.
Sec. 2002. Contracts: vouchering procedures.
Part II--Civilian Agency Acquisitions
Sec. 2051. Contract financing.
Subtitle B--Cost Principles
Part I--Armed Services Acquisitions
Sec. 2101. Allowable contract costs.
Sec. 2102. Contract profit controls during emergency periods.
Part II--Civilian Agency Acquisitions
Sec. 2151. Allowable contract costs.
Part III--Acquisitions Generally
Sec. 2191. 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. Exceptions to coverage.
Sec. 2302. 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
Part I--Armed Services Acquisitions
Sec. 2401. Procurement of critical aircraft and ship spare parts;
quality control.
Sec. 2402. Contractor guarantees regarding weapon systems.
Part II--Acquisitions Generally
Sec. 2451. Section 3737 of the Revised Statutes: expansion of authority
to prohibit setoffs against assignees;
reorganization of section; revision of
obsolete provisions.
Sec. 2452. Repeal of requirement for deposit of contracts with GAO.
Subtitle F--Claims and Disputes
Part I--Armed Services Acquisitions
Sec. 2501. Certification of contract claims.
Sec. 2502. Shipbuilding claims.
Part II--Acquisitions Generally
Sec. 2551. Claims jurisdiction of United States district courts and the
United States Court of Federal Claims.
Sec. 2552. Contract Disputes Act improvements.
Sec. 2553. Extension of alternative dispute resolution authority.
Sec. 2554. Expedited resolution of contract administration complaints.
TITLE III--SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES
Subtitle A--Major Systems Statutes
Sec. 3001. Requirement for independent cost estimates and manpower
estimates before development or production.
Sec. 3002. Enhanced program stability.
Sec. 3003. Repeal of requirement to designate certain major defense
acquisition programs as defense enterprise
programs.
Sec. 3004. Repeal of requirement for competitive prototyping in major
programs.
Sec. 3005. Repeal of requirement for competitive alternative sources in
major programs.
Subtitle B--Testing Statutes
Sec. 3011. Director of Operational Test and Evaluation to report
directly to Secretary of Defense.
Sec. 3012. Responsibility of Director of Operational Test and
Evaluation for live fire testing.
Sec. 3013. Requirement for unclassified version of annual report on
operational test and evaluation.
Subtitle C--Service Specific Laws
Sec. 3021. Gratuitous services of officers of certain reserve
components.
Sec. 3022. Authority to rent samples, drawings, and other information
to others.
Sec. 3023. Civil Reserve Air Fleet.
Sec. 3024. Exchange of personnel.
Sec. 3025. Scientific investigation and research for the Navy.
Sec. 3026. Construction of combatant and escort vessels and assignment
of vessel projects.
Sec. 3027. Repeal of requirement for construction of vessels on Pacific
coast.
Sec. 3028. Authority to transfer by gift a vessel stricken from Naval
Vessel Register.
Sec. 3029. Naval salvage facilities.
Subtitle D--Department of Defense Commercial and Industrial Activities
Sec. 3051. Factories and arsenals: manufacture at.
Sec. 3052. Accounting requirement for contracted advisory and
assistance services.
Subtitle E--Fuel- and Energy-Related Laws
Sec. 3061. Liquid fuels and natural gas: contracts for storage,
handling, or distribution.
Subtitle F--Fiscal Statutes
Sec. 3071. Disbursement of funds of military department to cover
obligations of another agency of Department
of Defense.
Subtitle G--Miscellaneous
Sec. 3081. Obligation of funds: limitation.
Sec. 3082. Repeal of requirements regarding product evaluation
activities.
Sec. 3083. Codification and revision of limitation on lease of vessels,
aircraft, and vehicles.
Sec. 3084. Soft drink supplies for exchange stores.
Sec. 3085. Repeal of preference for recycled toner cartridges.
TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL
BUSINESS, AND MISCELLANEOUS LAWS
Subtitle A--Simplified Acquisition Threshold
Part I--Establishment of Threshold
Sec. 4001. Simplified acquisition threshold.
Part II--Simplification of Procedures
Sec. 4011. Simplified acquisition procedures.
Sec. 4012. Small business reservation.
Sec. 4013. Fast payment under simplified acquisition procedures.
Sec. 4014. Procurement notice.
Sec. 4015. Electronic commerce for Federal Government procurements.
Part III--Applicability of Laws to Acquisitions Not in Excess of
Simplified Acquisition Threshold
Sec. 4021. Future enacted procurement laws.
Sec. 4022. Armed services acquisitions.
Sec. 4023. Civilian agency acquisitions.
Sec. 4024. Acquisitions generally.
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. Armed services acquisitions.
Sec. 4102. Acquisitions generally.
Sec. 4103. Acquisitions from small businesses.
Sec. 4104. Contracting program for certain small business concerns.
Subtitle C--Miscellaneous Acquisition Laws
Sec. 4151. Prohibition on use of funds for documenting economic or
employment impact of certain acquisition
programs.
Sec. 4152. Restriction on use of noncompetitive procedures for
procurement from a particular source.
TITLE V--ACQUISITION MANAGEMENT
Subtitle A--Armed Services Acquisitions
Sec. 5001. Performance based management.
Sec. 5002. Results oriented acquisition program cycle.
Sec. 5003. Defense acquisition pilot program designations.
Subtitle B--Civilian Agency Acquisitions
Sec. 5051. Performance based management.
Sec. 5052. Results-oriented acquisition process.
Subtitle C--Miscellaneous
Sec. 5091. Contractor exceptional performance awards.
Sec. 5092. Department of Defense acquisition of intellectual property
rights.
TITLE VI--STANDARDS OF CONDUCT
Subtitle A--Ethics Provisions
Sec. 6001. Amendments to Office of Federal Procurement Policy Act.
Sec. 6002. Amendments to title 18, United States Code.
Sec. 6003. Repeal of superseded and obsolete laws.
Sec. 6004. Implementation.
Subtitle B--Additional Amendments
Sec. 6051. Contracting functions performed by Federal personnel.
Sec. 6052. Repeal of executed requirement for study and report.
Sec. 6053. Interests of Members of Congress.
Sec. 6054. Waiting period for significant changes proposed for
acquisition regulations.
Subtitle C--Whistleblower Protection
Sec. 6101. Armed services procurements.
Sec. 6102. Governmentwide whistleblower protections for contractor
employees.
TITLE VII--DEFENSE TRADE AND COOPERATION
Sec. 7001. Purchases of foreign goods.
Sec. 7002. International cooperative agreements.
Sec. 7003. Acquisition, cross-servicing agreements, and
standardization.
TITLE VIII--COMMERCIAL ITEMS
Sec. 8001. Definitions.
Sec. 8002. Preference for acquisition of commercial items and
nondevelopmental items.
Sec. 8003. Acquisition of commercial items.
Sec. 8004. Class waiver of applicability of certain laws.
Sec. 8005. Inapplicability of certain provisions of law.
Sec. 8006. Flexible deadlines for submission of offers of commercial
items.
Sec. 8007. Advocates for acquisition of commercial and nondevelopmental
items.
Sec. 8008. Provisions not affected.
Sec. 8009. Comptroller General review of Federal Government use of
market research.
TITLE IX--EFFECTIVE DATES AND IMPLEMENTATION
Sec. 9001. Effective dates.
Sec. 9002. Implementing regulations.
Sec. 9003. Evaluation by the Comptroller General.
Sec. 9004. Data collection through the Federal procurement data system.
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. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE SOURCES OF
SUPPLY.
Section 2304(b) of title 10, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking out ``or'' at the end of
subparagraph (B);
(B) by striking out the period at the end of
subparagraph (C) and inserting in lieu thereof a
semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(D) would ensure the continuous availability of a
reliable source of supply of such property or service;
``(E) would satisfy projected needs for such property or
service determined on the basis of a history of high demand for
the property or service; or
``(F) in the case of medical supplies, safety supplies, or
emergency supplies, would satisfy a critical need for such
supplies.'';
(2) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(3) 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
(4) in paragraph (4), as redesignated by paragraph (2), by
striking out ``paragraphs (1) and (2)'' and inserting in lieu
thereof ``paragraphs (1) and (3)''.
SEC. 1003. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF PROCEDURES
OTHER THAN FULL AND OPEN COMPETITION.
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. 1004. TASK ORDER CONTRACTS FOR ADVISORY AND ASSISTANCE SERVICES.
(a) Authority.--
(1) In general.--Chapter 137 of title 10, United States
Code, is amended by inserting after section 2304 the following
new section:
``Sec. 2304a. Task order contracts for advisory and assistance services
``(a) Authority To Award.--(1) Subject to the requirements of this
section, the head of an agency may enter into a contract for advisory
and assistance services that does not procure or specify a firm
quantity of services (other than a minimum or maximum quantity) and
that provides for the issuance of task orders during the specified
period of the contract.
``(2) Except as provided in subsection (h), the head of an agency
may enter into a contract described in paragraph (1) only under the
authority of this section.
``(b) Limitation on Contract Period.--The period of a contract
referred to in subsection (a), including all periods of extensions of
the contract under options, modifications, or otherwise, may not exceed
5 years unless a longer period is specifically authorized in a law that
is applicable to such contract.
``(c) Contract Procedures.--(1) The head of an agency may use
procedures other than competitive procedures to enter into a contract
referred to in subsection (a) only if an exception in subsection (c) of
section 2304 of this title applies to the contract and the use of such
procedures is approved in accordance with subsection (f) of such
section.
``(2) The notice required by section 18 of the Office of Federal
Procurement Policy Act (41 U.S.C. 416) and section 8(e) of the Small
Business Act (15 U.S.C. 637(e)) shall reasonably and fairly describe
the general scope, magnitude, and duration of the proposed contract in
a manner that would reasonably enable a potential offeror to decide
whether to request the solicitation and consider submitting an offer.
``(3) The solicitation shall include the following:
``(A) The period of the contract, including the number of
options to extend the contract and the period for which the
contract may be extended under each option, if any.
``(B) The maximum quantity or dollar value of services to
be procured under the contract.
``(C) A statement of work, specifications, or other
description that reasonably describes the general scope,
nature, complexity, and purposes of the services to be procured
under the contract.
``(4)(A) The head of an agency may, on the basis of one
solicitation, award separate contracts under this section for the same
or similar services to two or more sources if the solicitation states
that the head of the agency has the option to do so.
``(B) If, in the case of a contract for advisory and assistance
services to be entered into under the authority of this section, the
contract period is to exceed 3 years and the contract amount is
estimated to exceed $10,000,000 (including all options), the
solicitation shall--
``(i) provide for a multiple award authorized under
subparagraph (A); and
``(ii) include a statement that the head of the agency may
also elect to award only one contract if the head of the agency
determines in writing that only one of the offerers is capable
of providing the services required at the level of quality
required.
``(C) Subparagraph (B) does not apply in the case of a solicitation
for which the head of an agency determines in writing that, because the
services required under the contract are unique or highly specialized,
it is not practicable to award more than one contract.
``(5) A contract referred to in subsection (a) shall contain the
same information that is required by paragraph (3) to be included in
the solicitation of offers for that contract.
``(d) Order Procedures.--(1) The following actions are not required
for a task order issued under a contract entered into in accordance
with this section:
``(A) A separate notice for such order under section 18 of
the Office of Federal Procurement Policy Act (41 U.S.C. 416) or
section 8(e) of the Small Business Act (15 U.S.C. 637(e)).
``(B) Except as provided in paragraph (2), a competition
(or a waiver of competition approved in accordance with section
2304(f) of this title) that is separate from that used for
entering into the contract.
``(2)(A) When multiple contracts are awarded pursuant to subsection
(c)(4), all contractors awarded such contracts shall be provided a fair
opportunity to be considered, pursuant to procedures set forth in the
contracts, for each task order in excess of $2,500 that is to be issued
under any of the contracts unless--
``(i) the agency's need for the services ordered is of such
unusual urgency that competition would result in unacceptable
delays in fulfilling the agency's needs;
``(ii) only one such contractor is capable of providing the
services required at the level of quality required because the
services ordered are unique or so highly specialized;
``(iii) the task order should be issued on a sole-source
basis in the interest of economy and efficiency because it is a
logical follow-on to a task order already issued on a
competitive basis; or
``(iv) the order must be placed with a particular
contractor in order to satisfy a minimum guarantee.
``(B) When a task order is issued in accordance with subparagraph
(A), the order shall include a statement of work that clearly specifies
all tasks to be performed under the order.
``(3) A protest is not authorized in connection with the issuance
or proposed issuance of a task order except for a protest on the ground
that the order increases the scope, period, or maximum value of the
contract under which the order is issued.
``(e) Increases in Scope, Period, or Maximum Value of Contract.--
(1) A task order may not increase the scope, period, or maximum value
of the contract under which the order is issued. The scope, period, or
maximum value of the contract may be increased only by modification of
the contract.
``(2) Unless use of procedures other than competitive procedures is
authorized by an exception in subsection (c) of section 2304 of this
title and approved in accordance with subsection (f) of such section,
competitive procedures shall be used for making such a modification.
``(3) Notice regarding the modification shall be provided in
accordance with section 18 of the Office of Federal Procurement Policy
Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15
U.S.C. 637(e)).
``(4)(A) Notwithstanding the limitation on the contract period set
forth in subsection (b) or in a solicitation or contract pursuant to
subsection (c), a contract entered into by the head of an agency under
this section may be extended on a sole-source basis for a period not
exceeding 6 months if the agency head determines that--
``(i) the award of a follow-on contract has been delayed by
circumstances that were not reasonably foreseeable at the time
the initial contract was entered into; and
``(ii) the extension is necessary in order to ensure
continuity of the receipt of services pending the award of, and
commencement of performance under, the follow-on contract.
``(B) A contract may be extended under the authority of
subparagraph (A) only once and only in accordance with the limitations
and requirements of this subsection.
``(f) Task Order Ombudsman.--Each head of an agency who awards
multiple contracts pursuant to subsection (c)(4) shall appoint or
designate a task order ombudsman who shall be responsible for reviewing
complaints from the contractors on such contracts and ensuring that all
of the contractors are afforded a fair opportunity to be considered for
task orders when required under subsection (d)(2). The task order
ombudsman shall be a senior agency official who is independent of the
contracting officer for the contracts and may be the agency's
competition advocate.
``(g) Inapplicability to Certain Contracts.--This section does not
apply to a contract for the acquisition of property or services that
includes acquisition of advisory and assistance services if the head of
an agency entering into such contract determines that, under the
contract, advisory and assistance services are necessarily incident to,
and not a significant component of, the contract.
``(h) Relationship to Other Contracting Authority.--Nothing in this
section may be construed to limit the authority of the head of an
agency to enter into single or multiple task order contracts, or single
or multiple delivery order contracts, for property or services (other
than advisory and assistance services) under other provisions of this
chapter or under any other provision of law.
``(i) Advisory and Assistance Services Defined.--In this section,
the term `advisory and assistance services' has the meaning given such
term in section 1105(g) of title 31.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2304 the following new item:
``2304a. Task order contracts for advisory and assistance services.''.
(b) Repeal of Superseded Provision.--Section 2304 of title 10,
United States Code, is amended by striking out subsection (j).
(c) Conforming Amendment for Professional and Technical Services.--
Section 2331 of title 10, United States Code, is amended by striking
out subsection (c).
SEC. 1005. ACQUISITION OF EXPERT SERVICES.
Section 2304(c)(3) of title 10, United States Code, is amended--
(1) by striking out ``or (B)'' and inserting in lieu
thereof ``(B)''; and
(2) by inserting before the semicolon at the end the
following: ``, or (C) to procure the services of an expert for
use, in any litigation or dispute (including any reasonably
foreseeable litigation or dispute) involving the Federal
Government, in any trial, hearing, or proceeding before any
court, administrative tribunal, or agency, or in any part of an
alternative dispute resolution process, whether or not the
expert is expected to testify''.
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 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--
``(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, prior
experience, and past performance 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 disclose to offerors whether all evaluation
factors other than cost or price, when combined, are--
``(I) significantly more important than cost or
price;
``(II) approximately equal in importance to cost or
price; or
``(III) significantly less important than cost or
price.
``(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 cost or price.''.
SEC. 1012. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE
OPTIONS.
(a) Options for Additional Purchases.--Subsection (a) of section
2305 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 for
options to purchase additional property 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.''.
(b) Repeal of Superseded Provision.--Section 2301(a) of such title
is amended--
(1) by striking out paragraph (7);
(2) by inserting ``and'' at the end of paragraph (5); and
(3) by striking out ``; and'' at the end of paragraph (6)
and inserting in lieu thereof a period.
SEC. 1013. PROMPT NOTICE OF AWARD.
(a) Sealed Bid Procedures.--Section 2305(b)(3) of title 10, United
States Code, is amended by adding at the end the following: ``As soon
as practicable after the date of contract award, the head of the agency
shall, in accordance with procedures prescribed in the Federal
Acquisition Regulation, notify all offerors not awarded the contract
that the contract has been awarded.''.
(b) Competitive Proposals Procedures.--Section 2305(b)(4)(B) of
title 10, United States Code, is amended in the second sentence by
striking out ``source and shall promptly notify'' and inserting in lieu
thereof ``source. As soon as practicable after the date of contract
award, the head of the agency shall, in accordance with procedures
prescribed in the Federal Acquisition Regulation, notify''.
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 the head of an agency on the
basis of competitive proposals, an unsuccessful offeror, upon written
request received by the agency within 3 days after the date on which
the unsuccessful offeror receives the 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 promptly after receipt of the request by the agency.
``(B) The 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 and technical rating of
the offer of the contractor awarded the contract and the
overall evaluated cost and technical rating of the offer of the
debriefed offeror;
``(iii) the overall ranking of all offers;
``(iv) a summary of the rationale for the award;
``(v) in the case of a proposal that incorporates equipment
that is a commercial item, the make and model of the item
incorporated 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 may not include point-by-point comparisons of
the debriefed offeror's offer with other offers and may not disclose
any information that is exempt from disclosure under section 552 of
title 5, including information relating to--
``(i) trade secrets;
``(ii) privileged or confidential manufacturing processes
and techniques; and
``(iii) commercial and financial information that is
privileged or confidential, including cost breakdowns, profit,
indirect cost rates, and similar information.
``(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 requirement under the contract either on
the basis of a new solicitation of offers or on the basis of new best
and final offers requested for that contract, the agency shall make
available to all offerors--
``(i) the information provided in debriefings under this
paragraph regarding the offer of the contractor awarded the
contract; and
``(ii) the comparable debriefing information that was
prepared 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:
``(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 procuring
activity and reasonable access shall be provided to actual or
prospective offerors.
``(2) Information exempt from disclosure under the section 552 of
title 5 may be redacted in a file established pursuant to paragraph (1)
unless an applicable protective order provides otherwise.
``(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 section 111 of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C.
759).''.
SEC. 1016. AWARD OF COSTS AND FEES IN AGENCY SETTLEMENT OF PROTESTS.
Section 2305 of title 10, United States Code, as amended by section
1015, is further amended by adding at the end the following new
subsection:
``(f) If, in connection with a protest, the head of an agency
determines that a solicitation, proposed award, or award does not
comply with the requirements of law or regulation, the head of the
agency may take--
``(1) any action set out in subparagraphs (A) through (F)
of subsection (b)(1) of section 3554 of title 31; and
``(2) may pay costs described in paragraph (1) of section
3554(c) of title 31 within the limits referred to in paragraph
(2) of such section.''.
SEC. 1017. TWO-PHASE SELECTION PROCEDURES.
(a) Procedures Authorized.--Chapter 137 of title 10, United States
Code, is amended by inserting after section 2305 the following new
section:
``Sec. 2305a. Two-phase selection procedures
``(a) Procedures Authorized.--The head of an agency may use two-
phase selection procedures for entering into a contract for the
acquisition of property or services when the head of the agency
determines that three or more offers will be received for such
contract, substantial design work must be performed before an offeror
can develop a price or cost proposal for such contract, and the
offerors will incur a substantial amount of expenses in preparing the
offers.
``(b) Procedures Described.--Two-phase selection procedures consist
of the following:
``(1) The head of the agency solicits proposals that--
``(A) include information on the offerors'--
``(i) technical approach; and
``(ii) technical qualifications; and
``(B) do not include--
``(i) detailed design information; or
``(ii) cost or price information.
``(2) The head of the agency evaluates the proposals on the
basis of evaluation criteria set forth in the solicitation,
except that the head of the agency does not consider cost-
related or price-related evaluation factors.
``(3) The head of the agency selects at least three
offerors as the most highly qualified to provide the property
or services under the contract and requests the selected
offerors to submit competitive proposals that include cost or
price information.
``(4) The head of the agency awards the contract in
accordance with section 2305(b)(4) of this title.
``(c) Resource Comparison Criterion Required.--In using two-phase
selection procedures for entering into a contract, the head of the
agency shall establish a resource criterion or a financial criterion
applicable to the contract in order to provide a consistent basis for
comparing the offerors and their proposals.
``(d) Two-Phase Selection Procedures Defined.--In this section, the
term `two-phase selection procedures' means procedures described in
subsection (b) that are used for the selection of a contractor on the
basis of cost or price and other evaluation criteria to provide
property or services in accordance with the provisions of a contract
which requires the contractor to design the property to be acquired
under the contract and produce or construct such property.
``(e) Applicability Only to Department of Defense.--This section
does not apply to the Coast Guard or the National Aeronautics and Space
Administration.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2305 the following:
``2305a. Two-phase selection procedures.''.
Subpart C--Kinds of Contracts
SEC. 1021. SECRETARIAL DETERMINATION REGARDING USE OF COST TYPE OR
INCENTIVE CONTRACT.
Subsection (c) of section 2306 of title 10, United States Code, is
repealed.
SEC. 1022. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Repeal of Unnecessary Cross Reference.--Subsection (f) of
section 2306 of title 10, United States Code, is repealed.
(b) Conforming Amendment.--Such section is amended by redesignating
subsections (d), (e), (g), and (h) as subsections (c), (d), (e), and
(f), respectively.
(c) Neuterization of Reference.--Subsection (e)(1) of such section,
as redesignated by subsection (b), is amended in the matter above
clause (i) by striking out ``whenever he finds'' and inserting in lieu
thereof ``whenever the head of the agency finds''.
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. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE SOURCES OF
SUPPLY.
Section 303(b) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253(b)) is amended--
(1) in paragraph (1)--
(A) by striking out ``or'' at the end of
subparagraph (B);
(B) by striking out the period at the end of
subparagraph (C) and inserting in lieu thereof a
semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(D) would ensure the continuous availability of a
reliable source of supply of such property or service;
``(E) would satisfy projected needs for such property or
service determined on the basis of a history of high demand for
the property or service; or
``(F) in the case of medical supplies, safety supplies, or
emergency supplies, would satisfy a critical need for such
supplies.'';
(2) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(3) 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
(4) in paragraph (4), as redesignated by paragraph (2), by
striking out ``paragraphs (1) and (2)'' and inserting in lieu
thereof ``paragraphs (1) and (3)''.
SEC. 1053. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF PROCEDURES
OTHER THAN FULL AND OPEN COMPETITION.
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)''.
SEC. 1054. TASK ORDER CONTRACTS FOR ADVISORY AND ASSISTANCE SERVICES.
(a) Authority.--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 303G the following new section:
``task order contracts for advisory and assistance services
``Sec. 303H. (a) Authority To Award.--(1) Subject to the
requirements of this section, the head of an executive agency may enter
into a contract for advisory and assistance services that does not
procure or specify a firm quantity of services (other than a minimum or
maximum quantity) and that provides for the issuance of task orders
during the specified period of the contract.
``(2) Except as provided in subsection (h), the agency head may
enter into a contract described in paragraph (1) only under the
authority of this section.
``(b) Limitation on Contract Period.--The period of a contract
referred to in subsection (a), including all periods of extensions of
the contract under options, modifications, or otherwise, may not exceed
5 years unless a longer period is specifically authorized in a law that
is applicable to such contract.
``(c) Contract Procedures.--(1) An agency head may use procedures
other than competitive procedures to enter into a contract referred to
in subsection (a) only if an exception in subsection (c) of section 303
applies to the contract and the use of such procedures is approved in
accordance with subsection (f) of such section.
``(2) The notice required by section 18 of the Office of Federal
Procurement Policy Act (41 U.S.C. 416) and section 8(e) of the Small
Business Act (15 U.S.C. 637(e)) shall reasonably and fairly describe
the general scope, magnitude, and duration of the proposed contract in
a manner that would reasonably enable a potential offeror to decide
whether to request the solicitation and consider submitting an offer.
``(3) The solicitation shall include the following:
``(A) The period of the contract, including the number of
options to extend the contract and the period for which the
contract may be extended under each option, if any.
``(B) The maximum quantity or dollar value of the services
to be procured under the contract.
``(C) A statement of work, specifications, or other
description that reasonably describes the general scope,
nature, complexity, and purposes of the services to be procured
under the contract.
``(4)(A) An agency head may, on the basis of one solicitation,
award separate contracts under this section for the same or similar
services to two or more sources if the solicitation states that the
agency head has the option to do so.
``(B) If, in the case of a contract for advisory and assistance
services to be entered into under the authority of this section, the
contract period is to exceed 3 years and the contract amount is
estimated to exceed $10,000,000 (including all options), the
solicitation shall--
``(i) provide for a multiple award authorized under
subparagraph (A); and
``(ii) include a statement that the agency head may also
elect to award only one contract if the agency head determines
in writing that only one of the offerers is capable of
providing the services required at the level of quality
required.
``(C) Subparagraph (B) does not apply in the case of a solicitation
for which the agency head determines in writing that, because the
services required under the contract are unique or highly specialized,
it is not practicable to award more than one contract.
``(5) A contract referred to in subsection (a) shall contain the
same information that is required by paragraph (3) to be included in
the solicitation of offers for that contract.
``(d) Order Procedures.--(1) The following actions are not required
for a task order issued under a contract entered into in accordance
with this section:
``(A) A separate notice for such order under section 18 of
the Office of Federal Procurement Policy Act (41 U.S.C. 416)
or section 8(e) of the Small Business Act (15 U.S.C. 637(e)).
``(B) Except as provided in paragraph (2), a competition
(or a waiver of competition approved in accordance with section
303(f)) that is separate from that used for entering into the
contract.
``(2)(A) When multiple contracts are awarded pursuant to subsection
(c)(4), all contractors awarded such contracts shall be provided a fair
opportunity to be considered, pursuant to procedures set forth in the
contracts, for each task order in excess of $2,500 that is to be issued
under any of the contracts unless--
``(i) the agency's need for the services ordered is of such
unusual urgency that competition would result in unacceptable
delays in fulfilling the agency's needs;
``(ii) only one such contractor is capable of providing the
services required at the level of quality required because the
services ordered are unique or highly specialized;
``(iii) the task order should be issued on a sole-source
basis in the interest of economy and efficiency because it is a
logical follow-on to a task order already issued on a
competitive basis; or
``(iv) the order must be placed with a particular
contractor in order to satisfy a minimum guarantee.
``(B) When a task order is issued in accordance with subparagraph
(A), the order shall include a statement of work that clearly specifies
all tasks to be performed under the order.
``(3) A protest is not authorized in connection with the issuance
or proposed issuance of a task order except for a protest on the ground
that the order increases the scope, period, or maximum value of the
contract under which the order is issued.
``(e) Increases in Scope, Period, or Maximum Value of Contract.--
(1) A task order may not increase the scope, period, or maximum value
of the contract under which the order is issued. The scope, period, or
maximum value of the contract may be increased only by modification of
the contract.
``(2) Unless use of procedures other than competitive procedures is
authorized by an exception in subsection (c) of section 303 and
approved in accordance with subsection (f) of such section, competitive
procedures shall be used for making such a modification.
``(3) Notice regarding the modification shall be provided in
accordance with section 18 of the Office of Federal Procurement Policy
Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15
U.S.C. 637(e)).
``(4)(A) Notwithstanding the limitation on the contract period set
forth in subsection (b) or in a solicitation or contract pursuant to
subsection (c), a contract entered into by the head of an agency under
this section may be extended on a sole-source basis for a period not
exceeding 6 months if the agency head determines that--
``(i) the award of a follow-on contract has been delayed by
circumstances that were not reasonably foreseeable at the time
the initial contract was entered into; and
``(ii) the extension is necessary in order to ensure
continuity of the receipt of services pending the award of, and
commencement of performance under, the follow-on contract.
``(B) A contract may be extended under the authority of
subparagraph (A) only once and only in accordance with the limitations
and requirements of this subsection.
``(f) Task Order Ombudsman.--Each agency head who awards multiple
contracts pursuant to subsection (c)(4) shall appoint or designate a
task order ombudsman who shall be responsible for reviewing complaints
from the contractors on such contracts and ensuring that all of the
contractors are afforded a fair opportunity to be considered for task
orders when required under subsection (d)(2). The task order ombudsman
shall be a senior agency official who is independent of the contracting
officer for the contracts and may be the agency's competition advocate.
``(g) Inapplicability to Certain Contracts.--This section does not
apply to a contract for the acquisition of property or services that
includes acquisition of advisory and assistance services if the agency
head entering into such contract determines that, under the contract,
advisory and assistance services are necessarily incident to, and not a
significant component of, the contract.
``(h) Relationship to Other Contracting Authority.--Nothing in this
section may be construed to limit the authority of the head of an
agency to enter into single or multiple task order contracts, or single
or multiple delivery order contracts, for goods or services (other than
advisory and assistance services) under other provisions of this title
or under any other provision of law.
``(i) Advisory and Assistance Services Defined.--In this section,
the term `advisory and assistance services' has the meaning given such
term in section 1105(g) of title 31, United States Code.''.
(b) Clerical Amendment.--The table of contents in the first section
is amended by inserting after the item relating to section 303G the
following new item:
``Sec. 303H. Task order contracts for advisory and assistance
services.''.
SEC. 1055. ACQUISITION OF EXPERT SERVICES.
(a) Exception to Requirement for Use of Competitive Procedures.--
Section 303(c)(3) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253(c)) is amended--
(1) by striking out ``or (B)'' and inserting in lieu
thereof ``(B)''; and
(2) by inserting before the semicolon at the end the
following: ``, or (C) to procure the services of an expert for
use, in any litigation or dispute (including any reasonably
foreseeable litigation or dispute) involving the Federal
Government, in any trial, hearing, or proceeding before any
court, administrative tribunal, or agency, or in any part of an
alternative dispute resolution process, whether or not the
expert is expected to testify''.
(b) Procurement Notice.--
(1) Amendment of office of federal procurement policy
act.--Section 18(c) of the Office of Federal Procurement Policy
Act (41 U.S.C. 416(c)) is amended--
(A) by striking out ``or'' at the end of
subparagraph (D);
(B) by striking out the period at the end of
subparagraph (E) and inserting in lieu thereof ``;
or''; and
(C) by adding at the end the following:
``(F) the procurement is for the services of an expert for
use in any litigation or dispute (including any reasonably
foreseeable litigation or dispute) involving the Federal
Government in any trial, hearing, or proceeding before any
court, administrative tribunal, or agency, or in any part of an
alternative dispute resolution process, whether or not the
expert is expected to testify.''.
(2) Amendment of small business act.--Section 8(g) of the
Small Business Act (15 U.S.C. 637(c)) is amended--
(A) by striking out ``or'' at the end of
subparagraph (D);
(B) by striking out the period at the end of
subparagraph (E) and inserting in lieu thereof ``;
or''; and
(C) by adding at the end the following:
``(F) the procurement is for the services of an expert for
use in any litigation or dispute (including preparation for any
foreseeable litigation or dispute) that involves or could
involve the Federal Government in any trial, hearing, or
proceeding before any court, administrative tribunal, or
agency, or in any part of an alternative dispute resolution
process, whether or not the expert is expected to testify.''.
(c) Repeal of Amendments to Uncodified Title.--The following
provisions of law are repealed:
(1) Section 532 of Public Law 101-509 (104 Stat. 1470) and
the provision of law set out in quotes in that section.
(2) Section 529 of Public Law 102-393 (106 Stat. 1761) and
the matters inserted and added by that section.
SEC. 1056. CONTINUED OCCUPANCY OF LEASED SPACE.
Section 303(d) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253(d)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2)(A) For the purposes of applying subsection (c)(1) in the case
of a follow-on lease to be entered into for the purpose of providing
for continued occupancy of particular space in leased real property by
a Federal agency, space may be treated as being available only from the
lessor of such space and may be acquired through the use of procedures
other than competitive procedures (without the justification otherwise
required by subsection (f)) if a written determination is made by the
contracting officer that--
``(i) the occupying agency has a continuing need for the
space;
``(ii) the space meets the needs of the agency; and
``(iii) the lessor is willing to continue to provide the
space at a fair market price determined by the contracting
officer on the basis of a market survey or an appraisal
conducted in accordance with generally accepted real property
appraisal standards.
``(B) The authority under subparagraph (A) to use procedures other
than competitive procedures to enter into a follow-on lease may be
exercised not more than once to provide for continued occupancy of
particular space in real property by a particular Federal agency. The
period of such follow-on lease may not exceed 5 years.
``(C) Nothing in this paragraph may be construed to prohibit the
use of procedures other than competitive procedures to enter into a
follow-on lease of real property for continued occupancy of particular
space in real property by a Federal agency when an exception set forth
in subsection (c) applies and the use of such procedures is justified
and approved in accordance with subsection (f).''.
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 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--
``(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, prior
experience, and past performance 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 disclose to offerors whether all evaluation
factors other than cost or price, when combined, are--
``(i) significantly more important than cost or
price;
``(ii) approximately equal in importance to cost or
price; or
``(iii) significantly less important than cost or
price.
``(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), 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.'';
(B) by striking out paragraphs (2) and (3) and by
redesignating paragraph (4) as paragraph (2); and
(C) in paragraph (2), as redesignated by
subparagraph (B), by inserting ``cost or'' before
``price'' in the first sentence.
(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 for
options to purchase additional property 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: ``As soon as
practicable after the date of contract award, the agency head shall, in
accordance with procedures prescribed in the Federal Acquisition
Regulation, notify all 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 ``source and shall
promptly notify'' and inserting in lieu thereof ``source. As soon as
practicable after the date of contract award, the agency head shall, in
accordance with procedures prescribed in the Federal Acquisition
Regulation, notify''.
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 the head of an executive
agency on the basis of competitive proposals, an unsuccessful offeror,
upon written request received by the agency within 3 days after the
date on which the unsuccessful offeror receives the 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 promptly after receipt of the request
by the agency.
``(2) The 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 and technical rating of
the offer of the contractor awarded the contract and the
overall evaluated cost and technical rating of the offer of the
debriefed offeror;
``(C) the overall ranking of all offers;
``(D) a summary of the rationale for the award;
``(E) in the case of a proposal that incorporates equipment
that is a commercial item, the make and model of the item
incorporated 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 may not include point-by-point comparisons of
the debriefed offeror's offer with other offers and may not disclose
any information that is exempt from disclosure under section 552 of
title 5, United States Code, including information relating to--
``(A) trade secrets;
``(B) privileged or confidential manufacturing processes
and techniques; and
``(C) commercial and financial information that is
privileged or confidential, including cost breakdowns, profit,
indirect cost rates, and similar information.
``(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 the requirement under the contract
either on the basis of a new solicitation of offers or on the basis of
new best and final offers requested for that contract, the agency head
shall make available to all offerors--
``(A) the information provided in debriefings under this
subsection regarding the offer of the contractor awarded the
contract; and
``(B) the comparable debriefing information that was
prepared 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), as amended by section 1064(1), is further
amended by adding at the end the following:
``(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
procuring activity and reasonable access shall be provided to actual or
prospective offerors.
``(2) Information exempt from disclosure under section 552 of title
5, United States Code, may be redacted in a file established pursuant
to paragraph (1) unless an applicable protective order provides
otherwise.
``(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 section 111 of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C.
759).''.
SEC. 1066. AWARD OF COSTS AND FEES IN AGENCY SETTLEMENT OF PROTESTS.
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) If, in connection with a protest, an agency head determines
that a solicitation, proposed award, or award does not comply with the
requirements of law or regulation, the agency head may take--
``(1) any action set out in subparagraphs (A) through (F)
of subsection (b)(1) of section 3554 of title 31, United States
Code; and
``(2) may pay costs described in paragraph (1) of section
3554(c) of such title within the limits referred to in
paragraph (2) of such section.''.
SEC. 1067. TWO-PHASE SELECTION PROCEDURES.
(a) Procedures Authorized.--Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended
by section 1054, is further amended by inserting after section 303H the
following new section:
``two-phase selection procedures
``Sec. 303I. (a) Procedures Authorized.--The head of an executive
agency may use two-phase selection procedures for entering into a
contract for the acquisition of property or services when the agency
head determines that three or more offers will be received for such
contract, substantial design work must be performed before an offeror
can develop a price or cost proposal for such contract, and the
offerors will incur a substantial amount of expenses in preparing the
offers.
``(b) Procedures Described.--Two-phase selection procedures consist
of the following:
``(1) The agency head solicits proposals that--
``(A) include information on the offerors'--
``(i) technical approach; and
``(ii) technical qualifications; and
``(B) do not include--
``(i) detailed design information; or
``(ii) cost or price information.
``(2) The agency head evaluates the proposals on the basis
of evaluation criteria set forth in the solicitation, except
that the agency head does not consider cost-related or price-
related evaluation factors.
``(3) The agency head selects at least three offerors as
the most highly qualified to provide the property or services
under the contract and requests the selected offerors to submit
competitive proposals that include cost or price information.
``(4) The agency head awards the contract in accordance
with section 303B(d).
``(c) Resource Comparison Criterion Required.--In using two-phase
selection procedures for entering into a contract, the agency head
shall establish a resource criterion or a financial criterion
applicable to the contract in order to provide a consistent basis for
comparing the offerors and their proposals.
``(d) Two-Phase Selection Procedures Defined.--In this section, the
term `two-phase selection procedures' means procedures described in
subsection (b) that are used for the selection of a contractor on the
basis of cost or price and other evaluation criteria to provide
property or services in accordance with the provisions of a contract
which requires the contractor to design the property to be acquired
under the contract and produce or construct such property.''.
(b) Clerical Amendment.--The table of contents in the first section
of such Act, as amended by section 1054, is further amended by
inserting after the item relating to section 303H the following new
item:
``Sec. 303I. Two-phase selection procedures.''.
Subpart C--Kinds of Contracts
SEC. 1071. 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 CONTRACTING AUTHORITY.
(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 1067, is further amended by inserting after section 303I the
following new section:
``multiyear contracts
``Sec. 303J. (a) Authority.--The head of an executive agency may
enter into a multiyear contract for the acquisition of property or
services if--
``(1) funds are available and obligated for such contract,
for the full period of the contract or for the first fiscal
year in which the contract is in effect, and for the estimated
costs associated with any necessary termination of such
contract; and
``(2) the agency head determines that--
``(A) the need for the property or services is
reasonably firm and continuing over the period of the
contract; and
``(B) a multiyear contract will serve the best
interests of the United States by encouraging effective
competition or promoting economy in administration,
performance, and operation of the agency's programs.
``(b) Termination Clause.--A multiyear contract entered into under
the authority of this section shall include a clause that provides that
the contract shall be terminated if funds are not made available for
the continuation of such contract in any fiscal year covered by the
contract. Amounts available for paying termination costs shall remain
available for such purpose until the costs associated with termination
of the contract are paid.
``(c) Rule of Construction.--Nothing in this section is intended to
modify or affect any other provision of law that authorizes multiyear
contracts.''.
(b) Clerical Amendment.--The table of contents in the first section
of such Act, as amended by section 1067, is further amended by
inserting after the item relating to section 303I the following new
item:
``Sec. 303J. Multiyear contracts.''.
SEC. 1073. SEVERABLE SERVICES CONTRACTS CROSSING FISCAL YEARS.
(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 1072, is further amended by inserting after section 303J the
following new section:
``severable services contracts for periods crossing fiscal years
``Sec. 303K. (a) Authority.--The head of an executive agency may
enter into a severable contract for procurement of services for a
period that begins in one fiscal year and ends in the next fiscal year
if (without regard to any option to extend the period of the contract)
the contract period does not exceed one year.
``(b) Availability of Funds.--To the extent provided in
appropriations Acts, funds obligated for a contract entered into under
the authority of subsection (a) shall remain available until no longer
needed to pay for such contract.
``(c) Severable Contract Defined.--In this section, the term
`severable contract' means a contract that contains a clause that makes
the effectiveness of the contract for periods after the end of the
fiscal year in which the performance of the contract begins subject to
the availability of appropriations.''.
(b) Clerical Amendment.--The table of contents in the first section
of such Act, as amended by section 1072, is further amended by
inserting after the item relating to section 303J the following new
item:
``Sec. 303K. Severable services contracts for periods crossing fiscal
years.''.
SEC. 1074. ECONOMY ACT PURCHASES.
(a) Regulations Required.--Not later than six months after the date
of the enactment of this Act, the Federal Acquisition Regulation shall
be revised to include regulations governing the exercise of the
authority under section 1535 of title 31, United States Code, for
Federal agencies to purchase goods and services under contracts entered
into or administered by other agencies.
(b) Content of Regulations.--The regulations prescribed pursuant to
subsection (a) shall--
(1) require that each purchase described in subsection (a)
be approved in advance by a contracting officer of the ordering
agency with authority to contract for the goods or services to
be purchased or by another official in a position specifically
designated by regulation to approve such purchase;
(2) provide that such a purchase of goods or services may
be made only if--
(A) the purchase is appropriately made under a
contract that the agency filling the purchase order
entered into, before the purchase order, in order to
meet the requirements of such agency for the same or
similar goods or services;
(B) the agency filling the purchase order is better
qualified to enter into or administer the contract for
such goods or services by reason of capabilities or
expertise that is not available within the ordering
agency; or
(C) the agency or unit filling the order is
specifically authorized by law or regulations to
purchase such goods or services on behalf of other
agencies;
(3) prohibit any such purchase under a contract or other
agreement entered into or administered by an agency not covered
by the provisions of chapter 137 of title 10, United States
Code, or title III of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 251 et seq.) and not covered by
the Federal Acquisition Regulation unless the purchase is
approved in advance by the senior procurement official
responsible for purchasing by the ordering agency; and
(4) prohibit any payment to the agency filling a purchase
order of any fee that exceeds the actual cost or, if the actual
cost is not known, the estimated cost of entering into and
administering the contract or other agreement under which the
order is filled.
(c) Monitoring System Required.--The Administrator for Federal
Procurement Policy shall ensure that, not later than one year after the
date of the enactment of this Act, systems for collecting and
evaluating procurement data are capable of collecting and evaluating
appropriate data on procurements conducted under the regulations
prescribed pursuant to subsection (a).
(d) Termination.--This section shall cease to be effective one year
after the date on which final regulations prescribed pursuant to
subsection (a) take effect.
PART III--ACQUISITIONS GENERALLY
SEC. 1091. POLICY REGARDING CONSIDERATION OF CONTRACTOR PAST
PERFORMANCE.
(a) Policy.--Section 2 of the Office of Federal Procurement Policy
Act (41 U.S.C. 401) is amended--
(1) by striking out ``and'' at the end of paragraph (12);
(2) by striking out the period at the end of paragraph (13)
and inserting in lieu thereof ``; and''; and
(3) by adding at the end the following new paragraph:
``(14) establishing policies and procedures that encourage
the consideration of contractors' past performance in the
selection of contractors.''.
(b) Guidance Required.--Section 6 of the Office of Federal
Procurement Policy Act (41 U.S.C. 405) is amended by adding at the end
the following:
``(j)(1) Congress makes the following findings:
``(A) Past contract performance of an offeror is one of the
relevant factors that contracting officials of executive
agencies should consider in entering into contracts.
``(B) It is appropriate for a contracting official to
consider past contract performance of an offeror as an
indicator of the likelihood that the offeror will successfully
perform a contract to be entered into by that official.
``(2) The Administrator shall prescribe for executive agencies
guidance regarding consideration of the past contract performance of
offerors in awarding contracts. The guidance shall include--
``(A) standards for evaluating past performance with
respect to cost (when appropriate), schedule, compliance with
technical or functional specifications, and other relevant
performance factors that facilitate consistent and fair
evaluation by all executive agencies;
``(B) policies for the collection and maintenance of
information on past contract performance that, to the maximum
extent practicable, facilitate automated collection,
maintenance, and dissemination of information and provide for
ease of collection, maintenance, and dissemination of
information by other methods, as necessary; and
``(C) policies for ensuring that offerors are afforded an
opportunity to submit information on past contract performance
and that information submitted by offerors is considered.
``(3) The Administrator shall prescribe for all executive agencies
the policy regarding the period for which information on past
performance of offerors may be maintained and considered.
``(4) In the case of an offeror regarding whom there is no
information on past contract performance or regarding whom information
on past contract performance is not available, the offeror may not be
evaluated favorably or unfavorably on the factor of past contract
performance.''.
SEC. 1092. 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) Repeal of Reversion to Lower Threshold.--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) Adjustments for Changes in Dollar Values.--Section 2306a(a) of
such title is amended by adding at the end the following new
subparagraph:
``(7) Effective on October 1 of each year that is divisible by 5,
each amount set forth in paragraph (1) shall be adjusted to the amount
that is equal to the fiscal year 1994 constant dollar value of the
amount set forth. Any amount, as so adjusted, that is not evenly
divisible by $50,000 shall be rounded to the nearest multiple of
$50,000. In the case of an amount that is evenly divisible by $25,000
but not evenly divisible by $50,000, the amount shall be rounded to the
next higher multiple of $50,000.''.
SEC. 1202. EXCEPTIONS TO COST OR PRICING DATA REQUIREMENTS.
(a) Exceptions Stated.--Subsection (b) of section 2306a of title
10, United States Code, is amended to read as follows:
``(b) Exceptions.--(1) Submission of cost and pricing data shall
not be required under subsection (a)--
``(A) in the case of a contract, a subcontract, or a
contract or subcontract modification, 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 customarily used for
other than Government purposes, as the case may be,
that are sold in substantial 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
concerned determines that the requirements of this section may
be waived and states in writing the reasons for such
determination.
``(2) Submission of cost and pricing data shall not be required
under subsection (a) in the case of a modification of a contract or
subcontract for a commercial item if--
``(A) the contract or subcontract being modified is a
contract or subcontract for which submission of cost and
pricing data may not be required by reason of paragraph (1)(A);
``(B) the modification is not a case in which paragraph
(1)(A) prohibits the head of an agency from requiring
submission of cost and pricing data; and
``(C) the modification would not change the contract or
subcontract, as the case may be, from a contract or subcontract
for the acquisition of a commercial item to a contract or
subcontract for the acquisition of a noncommercial item.''.
(b) Conforming Amendment to Reference.--Subsection (a)(5) of such
section is amended by striking out ``subsection (b)(2)'' and inserting
in lieu thereof ``subsection (b)(1)(B)''.
SEC. 1203. LIMITATION ON AUTHORITY TO REQUIRE A SUBMISSION NOT
OTHERWISE REQUIRED.
Subsection (c) of section 2306a of title 10, United States Code, is
amended to read as follows:
``(c) Limitation on Authority To Require Cost or Pricing Data.--
When cost or pricing data are not required to be submitted under this
section by reason of a $500,000 threshold set forth in subsection (a)
(as adjusted pursuant to paragraph (7) of such subsection) or by reason
of an exception set forth in paragraph (1)(A) or (2) of subsection (b),
submission of such data may not be required unless the head of an
agency concerned determines that such data are necessary for the
evaluation by the agency of the reasonableness of the price of the
contract or subcontract to which the data relate. In any case in which
the head of an agency requires such data to be submitted in accordance
with the preceding sentence, the agency head shall document in writing
the reasons for such requirement.''.
SEC. 1204. ADDITIONAL SPECIAL RULES FOR COMMERCIAL ITEMS.
Section 2306a of title 10, United States Code, is amended--
(1) by redesignating subsections (d), (e), (f), and (g) as
subsections (e), (f), (g), and (i), respectively; and
(2) by inserting after subsection (c) the following new
subsection (d):
``(d) Additional Exception Provisions Regarding Commercial Items.--
(1) To the maximum extent practicable, the head of an agency shall
conduct procurements of commercial items on a competitive basis.
``(2) In any case in which it is not practicable to conduct a
procurement of a commercial item on a competitive basis and the
procurement is not covered by an exception in subsection (b), the
contracting officer shall nonetheless exempt a contract, subcontract,
or modification of a contract or subcontract under the procurement from
the requirements of subsection (a) if the contracting officer develops
or obtains from the offeror or contractor, or from another source or
sources, in accordance with standards and procedures set forth in the
Federal Acquisition Regulation, information on prices at which the same
or similar items have been sold in the commercial market that is
adequate for evaluating the reasonableness of the price of the contract
or subcontract for a commercial item, or the contract or subcontract
modification, as the case may be.
``(3)(A) In accordance with procedures prescribed in the Federal
Acquisition Regulation, the head of an agency shall have the right to
examine all information provided by an offeror, contractor, or
subcontractor pursuant to paragraph (2) and all books and records of
such offeror, contractor, or subcontractor that directly relate to such
information in order to determine whether the agency is receiving
accurate information required under this section.
``(B) The right under subparagraph (A) shall expire 3 years after
the date of award of the contract, or 3 years after the date of the
modification of the contract, with respect to which the information was
provided.''.
SEC. 1205. RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR RECORDS.
Section 2306a of title 10, United States Code, is amended by
striking out subsection (g), as redesignated by section 1204(1), and
inserting in lieu thereof the following:
``(g) 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 of this
title.''.
SEC. 1206. REQUIRED REGULATIONS.
Section 2306a of title 10, United States Code, as amended by
sections 1204 and 1205, is further amended by inserting after
subsection (g) the following new subsection:
``(h) Required Regulations.--The Secretary shall prescribe
regulations concerning the types of information that offerors must
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
this section because the price of the procurement to the United States
is not expected to exceed an applicable $500,000 threshold set forth in
subsection (a) (as adjusted pursuant to paragraph (7) of such
subsection). Such information, at a minimum, shall include appropriate
information on the prices at which such offeror has previously sold the
same or similar products.''.
SEC. 1207. CONSISTENCY OF TIME REFERENCES.
Section 2306a of title 10, United States Code, as amended by
section 1204(1), is further amended--
(1) in subparagraphs (A)(ii) and (B)(ii) of subsection
(e)(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 (i), 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. 1208. EXCEPTION FOR TRANSFERS BETWEEN DIVISIONS, SUBSIDIARIES, AND
AFFILIATES.
Subsection (i) of section 2306a of title 10, United States Code, as
redesignated by section 1204(1), is amended to read as follows:
``(i) Definitions.--In this section:
``(1) 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), a prudent buyer or seller
would reasonably expect to affect price negotiations
significantly. Such term does not include information that is
judgmental, but does include the factual information from which
a judgment was derived.
``(2) The term `subcontract' includes a transfer of
commercial items between divisions, subsidiaries, or affiliates
of a contractor.''.
SEC. 1209. REPEAL OF SUPERSEDED PROVISION.
Subsections (b) and (c) of section 803 of Public Law 101-510 (10
U.S.C. 2306a note) are repealed.
PART II--CIVILIAN AGENCY ACQUISITIONS
SEC. 1251. REVISION OF CIVILIAN AGENCY PROVISIONS TO ENSURE UNIFORM
TREATMENT OF COST OR PRICING DATA.
(a) In General.--Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is
amended--
(1) in section 304, by striking out subsection (d); and
(2) by inserting after section 304 the following new
section:
``cost or pricing data: truth in negotiations
``Sec. 304A. (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 Streamlining 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 Streamlining 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
Streamlining 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 Streamlining 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 agency head concerned to submit such data in accordance
with 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 in accordance with 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)(1)(B) shall be
considered as having been required to make available cost or pricing
data under this section.
``(6)(A) 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 Streamlining 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.
``(B) An agency head is not required to modify a contract under
subparagraph (A) if that agency head determines that the submission of
cost or pricing data with respect to that contract should be required
in accordance with subsection (c).
``(7) Effective on October 1 of each year that is divisible by 5,
each amount set forth in paragraph (1) shall be adjusted to the amount
that is equal to the fiscal year 1994 constant dollar value of the
amount set forth. Any amount, as so adjusted, that is not evenly
divisible by $50,000 shall be rounded to the nearest multiple of
$50,000. In the case of an amount that is evenly divisible by $25,000
but not evenly divisible by $50,000, the amount shall be rounded to the
next higher multiple of $50,000.
``(b) Exceptions.--(1) Submission of cost and pricing data shall
not be required under subsection (a)--
``(A) in the case of a contract, a subcontract, or a
contract or subcontract modification, 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 customarily used for
other than Government purposes, as the case may be,
that are sold in substantial quantities to the general
public; or
``(iii) prices set by law or regulation; or
``(B) in an exceptional case when the agency head concerned
determines that the requirements of this section may be waived
and states in writing the reasons for such determination.
``(2) Submission of cost and pricing data shall not be required
under subsection (a) in the case of a modification of a contract or
subcontract for a commercial item if--
``(A) the contract or subcontract being modified is a
contract or subcontract for which submission of cost and
pricing data may not be required by reason of paragraph (1)(A);
``(B) the modification is not a case in which paragraph
(1)(A) prohibits the agency head from requiring submission of
cost and pricing data; and
``(C) the modification would not change the contract or
subcontract, as the case may be, from a contract or subcontract
for the acquisition of a commercial item to a contract or
subcontract for the acquisition of a noncommercial item.
``(c) Limitation on Authority To Require Cost or Pricing Data.--
When cost or pricing data are not required to be submitted under this
section by reason of a $500,000 threshold set forth in subsection (a)
(as adjusted pursuant to paragraph (7) of such subsection) or by reason
of an exception in paragraph (1)(A) or (2) of subsection (b),
submission of such data may not be required unless the agency head
concerned determines that such data are necessary for the evaluation by
the agency of the reasonableness of the price of the contract or
subcontract to which the data relate. In any case in which the agency
head requires such data to be submitted in accordance with the
preceding sentence, the agency head shall document in writing the
reasons for such requirement.
``(d) Additional Exception Provisions Regarding Commercial Items.--
(1) To the maximum extent practicable, an agency head shall conduct
procurements of commercial items on a competitive basis.
``(2) In any case in which it is not practicable to conduct a
procurement of a commercial item on a competitive basis and the
procurement is not covered by an exception in subsection (b), the
contracting officer shall nonetheless exempt a contract, subcontract,
or modification of a contract or subcontract under the procurement from
the requirements of subsection (a) if the contracting officer develops
or obtains from the offeror or contractor, or from another source or
sources, in accordance with standards and procedures set forth in the
Federal Acquisition Regulation, information on prices at which the same
or similar items have been sold in the commercial market that is
adequate for evaluating the reasonableness of the price of the contract
or subcontract for a commercial item, or the contract or subcontract
modification, as the case may be.
``(3)(A) In accordance with procedures prescribed in the Federal
Acquisition Regulation, an agency head shall have the right to examine
all information provided by an offeror, contractor, or subcontractor
pursuant to paragraph (2) and all books and records of such offeror,
contractor, or subcontractor that directly relate to such information
in order to determine whether the agency is receiving accurate
information required under this section.
``(B) The right under subparagraph (A) shall expire 3 years after
the date of award of the contract, or 3 years after the date of the
modification of the contract, with respect to which the information was
provided.
``(e) 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.
``(f) 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.
``(g) 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 304B(a)(2).
``(h) Required Regulations.--The Federal Acquisition Regulation
shall include regulations concerning the types of information that
offerors must 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 this section because the price of the
procurement to the United States is not expected to exceed an
applicable $500,000 threshold set forth in subsection (a) (as adjusted
pursuant to paragraph (7) of such subsection). Such information, at a
minimum, shall include appropriate information on the prices at which
such offeror has previously sold the same or similar products.
``(i) Definitions.--In this section:
``(1) 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 (e)(1)(B), another date agreed upon between the
parties, a prudent buyer or seller would reasonably expect to
affect price negotiations significantly. Such term does not
include information that is judgmental, but does include the
factual information from which a judgment was derived.
``(2) The term `subcontract' includes a transfer of
commercial items between divisions, subsidiaries, or affiliates
of a contractor.''.
(b) Table of Contents.--The table of contents in the first section
of such Act is amended by inserting after the item relating to section
304 the following:
``Sec. 304A. Cost or pricing data: truth in negotiations.''.
SEC. 1252. REPEAL OF OBSOLETE PROVISION.
(a) Repeal.--Section 303E of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253e) is repealed.
(b) Clerical Amendment.--The table of contents in the first section
of such Act is amended by striking out the item relating to section
303E.
Subtitle C--Research and Development
SEC. 1301. RESEARCH PROJECTS.
(a) Authorized Means.--Subsection (b) of section 2358 of title 10,
United States Code, is amended to read as follows:
``(b) Authorized Means.--The Secretary of Defense or the Secretary
of a military department may perform research and development
projects--
``(1) by contract entered into with, grant made to, or
cooperative agreement entered into with educational or research
institutions, private businesses, or other persons in
accordance with the provisions of chapter 63 of title 31;
``(2) through one or more military departments;
``(3) by using employees and consultants of the Department
of Defense; or
``(4) by mutual agreement with the head of any other
department or agency of the Federal Government.''.
(b) Caption Amendment.--The caption of subsection (c) of such
section is amended by striking out ``Military'' and inserting in lieu
thereof ``Department of Defense''.
(c) Advanced Research Projects.--
(1) Restoration and revision of former statement of
authority.--Section 2371 of title 10, United States Code, is
amended--
(A) by redesignating subsections (a), (b), (c),
(d), (e), and (f) as subsections (b), (c), (d), (e),
(f), and (g), respectively; and
(B) by inserting before subsection (b), as so
redesignated, the following new subsection (a):
``(a) The Secretary of Defense, acting through the Advanced
Research Projects Agency and such other elements of the Department of
Defense as the Secretary may designate, and the Secretary of each
military department, in carrying out basic, applied, and advanced
research projects, may enter into other transactions, in addition to
contracts, grants, and cooperative agreements authorized by section
2358 of this title.''.
(2) Conforming amendments.--Such section, as amended by
paragraph (1), is further amended--
(A) in subsection (b)--
(i) in paragraph (1), by inserting ``or
subsection (a)'' after ``section 2358 of this
title''; and
(ii) in paragraph (2), by striking out
``subsection (d)'' and inserting in lieu
thereof ``subsection (e)'';
(B) in subsection (c), by inserting ``section 2358
of this title or'' after ``under'';
(C) in subsection (d)--
(i) in paragraph (1), by striking out
``this section'' and inserting in lieu thereof
``section 2358 of this title or subsection
(a)''; and
(ii) in paragraph (3), by striking out
``this section'' and inserting in lieu thereof
``section 2358 of this title or subsection
(a)'';
(D) in subsection (e), by inserting ``or subsection
(a)'' in the first sentence after ``section 2358 of
this title''; and
(E) in subsection (f)--
(i) in the first sentence, by striking out
``under this section'' and inserting in lieu
thereof ``under section 2358 of this title or
subsection (a)'';
(ii) in paragraph (4), by striking out
``subsection (a)'' and inserting in lieu
thereof ``subsection (b)''; and
(iii) in paragraph (5), by striking out
``subsection (d)'' and inserting in lieu
thereof ``subsection (e)''.
SEC. 1302. ELIMINATION OF INFLEXIBLE TERMINOLOGY REGARDING COORDINATION
AND COMMUNICATION OF DEFENSE RESEARCH ACTIVITIES.
Section 2364 of title 10, United States Code, is amended--
(1) in subsection (b)(5), by striking out ``milestone 0,
milestone I, and milestone II decisions'' and inserting in lieu
thereof ``acquisition program decisions''; and
(2) in subsection (c), by striking out paragraphs (2), (3),
and (4) and inserting in lieu thereof the following:
``(2) The term `acquisition program decisions' has the
meaning given such term in regulations prescribed by the
Secretary of Defense for the purposes of this section.''.
Subtitle D--Procurement Protests
PART I--PROTESTS TO THE COMPTROLLER GENERAL
SEC. 1401. PROTEST DEFINED.
Paragraph (1) of section 3551 of title 31, United States Code, is
amended to read as follows:
``(1) `protest' means a written objection by an interested
party--
``(i) to a solicitation or other request by a
Federal agency for offers for a contract for the
procurement of property or services;
``(ii) to the cancellation of such a solicitation
or other request;
``(iii) to an award or proposed award of such a
contract; or
``(iv) to a termination or cancellation of an award
of such a contract, if the written objection contains
an allegation that the termination or cancellation is
based in whole or in part on improprieties concerning
the award of the contract;''.
SEC. 1402. REVIEW OF PROTESTS AND EFFECT ON CONTRACTS PENDING DECISION.
(a) Periods for Certain Actions.--Section 3553 of title 31, United
States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking out ``one working
day of'' and inserting in lieu thereof ``one day
after''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking out
``25 working days from'' and inserting in lieu
thereof ``35 days after''; and
(ii) in subparagraph (C), by striking out
``10 working days from'' and inserting in lieu
thereof ``25 days after''; and
(2) in subsection (c)(3), 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)(1) A contractor awarded a Federal agency contract may, during
the period described in paragraph (4), begin performance of the
contract and engage in any related activities that result in
obligations being incurred by the United States under the contract
unless the contracting officer responsible for the award of the
contract withholds authorization to proceed with performance of the
contract.
``(2) The contracting officer may withhold an authorization to
proceed with performance of the contract during the period described in
paragraph (4) if the contracting officer determines in writing that--
``(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)(A) If the Federal agency awarding the contract receives
notice of a protest in accordance with this section during the period
described in paragraph (4)--
``(i) the contracting officer may not authorize performance
of the contract to begin while the protest is pending; or
``(ii) if contract performance authorization to proceed was
not withheld 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) Performance and related activities suspended pursuant to
subparagraph (A)(ii) by reason of a protest may not be resumed while
the protest is pending.
``(C) The head of the procuring 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 that--
``(I) performance of the contract is in the best
interests of the United States; or
``(II) 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.
``(4) The period referred to in paragraphs (2) and (3)(A), with
respect to a contract, is the period beginning on the date of the
contract award and ending on the later of--
``(A) the date that is 10 days after the date of the
contract award; or
``(B) the date that is 5 days after--
``(i) the debriefing date offered to an
unsuccessful offeror for any debriefing that is
requested and, when requested, is required; or
``(ii) in the case of a contract for which no
debriefing is required, the date on which the
unsuccessful offeror receives the notification of
contract award.''.
SEC. 1403. DECISIONS ON PROTESTS.
(a) Periods for Certain Actions.--Section 3554(a) of title 31,
United States Code, is amended--
(1) in paragraph (1), by striking out ``90 working days
from'' and inserting in lieu thereof ``125 days after'';
(2) in paragraph (2), by striking out ``45 calendar days
from'' and inserting ``65 days after'';
(3) by redesignating paragraph (3) as paragraph (4); and
(4) 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 made, 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 procuring 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) No party may be paid, pursuant to a recommendation made under
the authority of paragraph (1)--
``(A) costs for consultant and expert witness fees that
exceed the rates provided under section 504(b)(1)(A) of title 5
for expert witnesses; or
``(B) costs for attorney's fees that exceed the rates
provided for attorneys under section 504(b)(1)(A) of title 5.
``(3) 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; 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.
``(4) 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) legislative rescission or cancellation of
funds;
``(iii) further investigation by Congress; or
``(iv) 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.--Costs 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.
SEC. 1404. 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
cause the closing of the General Accounting Office or
Federal agency, 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 THE FEDERAL COURTS
SEC. 1421. NONEXCLUSIVITY OF REMEDIES.
Section 3556 of title 31, United States Code, is amended by
striking out ``a district court of the United States or the United
States Claims Court'' in the first sentence and inserting in lieu
thereof ``the United States Court of Federal Claims''.
SEC. 1422. JURISDICTION OF THE UNITED STATES COURT OF FEDERAL CLAIMS.
(a) Claims Against the United States and Bid Protests.--Section
1491 of title 28, United States Code, is amended--
(1) by redesignating subsection (b) as subsection (e);
(2) in subsection (a)--
(A) by striking out ``(a)(1)'' and inserting in
lieu thereof ``(a) Claims Against the United States.--
'';
(B) in paragraph (2), by striking out ``(2) To''
and inserting in lieu thereof ``(b) Remedy and
Relief.--To''; and
(C) by striking out paragraph (3); and
(3) by inserting after subsection (b), as designated by
paragraph (2)(B), the following new subsection (c):
``(c) Bid Protests.--(1) The United States Court of Federal Claims
has jurisdiction to render judgment on an action by an interested party
objecting to a solicitation by a Federal agency for bids or proposals
for a proposed contract or to a proposed award or the award of a
contract. The court has jurisdiction to entertain such an action
without regard to whether suit is instituted before or after the
contract is awarded.
``(2) To afford relief in such an action, the court may award any
relief that the court considers proper, including declaratory and
injunctive relief.
``(3) In exercising jurisdiction under this subsection, the court
shall give due regard to the interests of national defense and national
security and the need for expeditious resolution of the action.
``(4) The district courts of the United States do not have
jurisdiction of any action referred to in paragraph (1).''.
(b) Clerical Amendments.--
(1) Section heading.--The heading of such section is
amended by inserting ``bid protests;'' after ``generally;''.
(2) Table of sections.--The table of sections at the
beginning of chapter 91 of title 28, United States Code, is
amended by striking out the item relating to section 1491 and
inserting in lieu thereof the following:
``1491. Claims against United States generally; bid protests; actions
involving Tennessee Valley Authority.''.
PART III--PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING
SEC. 1431. REVOCATION OF DELEGATIONS OF PROCUREMENT AUTHORITY.
Section 111(b)(3) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(b)(3)) is amended by inserting
after the third sentence the following: ``The Administrator may revoke
a delegation of authority with respect to a particular contract before
or after award of the contract, except that the Administrator may
revoke a delegation after the contract is awarded only when there is a
finding of a violation of law or regulation in connection with the
contract award.''.
SEC. 1432. AUTHORITY OF THE GENERAL SERVICES ADMINISTRATION BOARD OF
CONTRACT APPEALS.
The first sentence of section 111(f)(1) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759(f)(1)) is amended to
read as follows: ``Upon request of an interested party in connection
with any procurement that is subject to this section (including any
such procurement that is subject to delegation of procurement
authority), the board of contract appeals of the General Services
Administration (hereafter in this subsection referred to as the
`board') shall review, as provided in this subsection, any decision by
a contracting officer that is alleged to violate a statute, a
regulation, or the conditions of a delegation of procurement
authority.''.
SEC. 1433. PERIODS FOR CERTAIN ACTIONS.
(a) Suspension of Procurement Authority.--Section 111(f) of the
Federal Property and Administrative Services Act of 1949 (40 U.S.C.
759(f)) is amended--
(1) in paragraph (2) by adding at the end the following new
subparagraph:
``(C) If, in the case of a preaward protest, the board suspends the
procurement authority of the Administrator or the Administrator's
delegation of procurement authority, the Administrator or the delegate,
as the case may be, may continue with the procurement action up to, but
not including, the awarding of the contract if the Administrator or the
delegate, as the case may be, determines that it is in the best
interests of the United States to do so.''; and
(2) in paragraph (3) 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 date
that is 10 days after the date of the contract award or, if later, the
date that is 5 days after--
``(I) the debriefing date offered to an unsuccessful
offeror for any debriefing that is requested and, when
requested, is required; or
``(II) in the case of a contract for which no debriefing is
required, the date on which the unsuccessful offeror receives
the notification of contract award.
``(iii) The board shall hold the requested hearing within 5 days
after the date of the filing of the protest or, in the case of a
request for debriefing under the provisions of section 2305(b)(5) of
title 10, United States Code, or section 303B(e) of this Act, within 5
days after the later of the date of the filing of the protest or the
date of the debriefing.''.
(b) Final Decision.--Paragraph (4)(B) of such section 111(f) is
amended--
(1) by striking out ``45 working days'' and inserting in
lieu thereof ``65 days''; and
(2) 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. 1434. DISMISSALS OF PROTESTS.
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:
``(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.''.
SEC. 1435. AWARD OF COSTS.
Section 111(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. However, no party may be declared entitled to costs for
consultant and expert witness fees that exceed the rates provided under
section 504(b)(1)(A) of title 5, United States Code, for expert
witnesses or to costs for attorney's fees that exceed the rates
provided for attorneys under section 504(b)(1)(A) of title 5, United
States Code.''.
SEC. 1436. DISMISSAL AGREEMENTS.
Section 111(f)(5) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(f)(5)) is 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. 1437. JURISDICTION OF DISTRICT COURTS.
Section 111(f)(6)(C) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759(f)(6)(C)) is amended by striking
out ``a district court of the United States or''.
SEC. 1438. 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 by striking out paragraph (8)
and inserting in lieu thereof 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 cause the closing of the board or Federal
agency, 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.
``(D) The procedures shall provide that if the board expressly
finds that a protest or a portion of a protest is frivolous or has not
been brought or pursued in good faith, or that any person has willfully
abused the board's process during the course of a protest, the board
may impose appropriate procedural sanctions, including dismissal of the
protest.''.
SEC. 1439. DEFINITIONS.
(a) Protest.--Section 111(f)(9)(A) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759(f)(9)(A)) is amended
to read as follows:
``(A) the term `protest' means a written objection by an
interested party--
``(i) to a solicitation or other request by a
Federal agency for offers for a contract for the
procurement of property or services;
``(ii) to the cancellation of such a solicitation
or other request;
``(iii) to an award or proposed award of such a
contract; or
``(iv) to a termination or cancellation of an award
of such a contract, if the written objection contains
an allegation that the termination or cancellation is
based in whole or in part on improprieties concerning
the award of the contract;''.
(b) Prevailing Party.--Section 111(f)(9) of such Act 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) the term `prevailing party', with respect to a
determination of the board under paragraph (5)(B) that a
challenged action of a Federal agency violates a statute or
regulation or the conditions of a delegation of procurement
authority issued pursuant to this section, means a party that
demonstrated such violation.''.
Subtitle E--Definitions and Other Matters
PART I--ARMED SERVICES ACQUISITIONS
SEC. 1501. DEFINITIONS.
Section 2302 of title 10, United States Code, is amended--
(1) by striking out paragraphs (3), (4), (5), and (7);
(2) by redesignating paragraph (6) as paragraph (5); and
(3) by inserting after paragraph (2) the following:
``(3) The terms `commercial item', `full and open
competition', `major system', `nondevelopmental item',
`procurement', `procurement system', `responsible source',
`standards', and `technical data', have the meanings given such
terms in section 4 of the Office of Federal Procurement Policy
Act (41 U.S.C. 403).
``(4) The term `simplified acquisition threshold' has the
meaning given that term in section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403), except that, in the
case of any contract to be awarded and performed, or purchase
to be made, outside the United States in support of a
contingency operation, the term means an amount equal to two
times the amount specified for that term in section 4 of such
Act.''.
SEC. 1502. DELEGATION OF PROCUREMENT FUNCTIONS.
(a) Consolidation of Delegation Authority.--Section 2311 of title
10, United States Code, is amended to read as follows:
``Sec. 2311. Delegation
``(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 approved for termination or substantial reduction in
participation in a joint acquisition program to continue to
provide some or all of the funding necessary for the
acquisition program to be continued in an efficient manner.''.
(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. 1503. 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 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(e)(1), 2307(e), or 2313(d)(2) 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. 1504. UNDEFINITIZED CONTRACTUAL ACTIONS: RESTRICTIONS.
(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 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.--Section 2326(g)(1)(B) of title 10,
United States Code, is amended by striking out ``small purchase
threshold'' and inserting in lieu thereof ``simplified acquisition
threshold''.
SEC. 1505. PRODUCTION SPECIAL TOOLING AND PRODUCTION SPECIAL TEST
EQUIPMENT: CONTRACT TERMS AND CONDITIONS.
(a) Repeal.--Section 2329 of title 10, United States Code, is
repealed.
(b) Technical 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. 1506. 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.
Section 309(c) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 259(c)) is amended by striking out ``and
`supplies''' and inserting in lieu thereof ```supplies', `commercial
item', `nondevelopmental item', and `simplified acquisition
threshold'''.
SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS.
(a) Authority.--Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is
amended--
(1) by redesignating sections 309 and 310 as sections 312
and 313, respectively; and
(2) by inserting after section 308 the following new
section 309:
``delegation
``Sec. 309. (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.''.
(b) Clerical Amendment.--The table of contents in the first section
of such Act is amended by striking out the items relating to sections
309 and 310 and inserting in lieu thereof the following:
``Sec. 309. Delegation.
``Sec. 312. Definitions.
``Sec. 313. Statutes not applicable.''.
SEC. 1553. DETERMINATIONS AND DECISIONS.
(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 1552, is further amended by inserting after section 309 the
following new section 310:
``determinations and decisions
``Sec. 310. (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 for a class of purchases or contracts. Such determinations
and decisions are final.
``(b) Written Findings Required.--(1) Each determination under
section 305(e) 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 than 6 years after the date of the determination or
decision.''.
(b) Clerical Amendment.--The table of contents in the first section
of such Act, as amended by section 1552, is further amended by
inserting after the item relating to section 309 the following:
``Sec. 310. Determinations and decisions.''.
SEC. 1554. COOPERATIVE PURCHASING.
Subsection (b) of section 201 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 481), is amended to read
as follows:
``(b)(1) The Administrator shall, as far as practicable, provide
any of the services specified in subsection (a) of this section to any
other Federal agency, mixed-ownership Government corporation (as
defined in section 9101 of title 31, United States Code), or the
District of Columbia, upon its request.
``(2)(A) The Administrator may provide for the use of Federal
supply schedules or other contracts by any of the following entities
upon request:
``(i) A State, any department or agency of a State, and any
political subdivision of a State, including a local government.
``(ii) The District of Columbia.
``(iii) The Commonwealth of Puerto Rico.
``(iv) The government of an Indian tribe (as defined in
section 4(e) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b(e))).
``(B) Subparagraph (A) may not be construed to authorize an entity
referred to in that subparagraph to order existing stock or inventory
from federally owned and operated, or federally owned and contractor
operated, supply depots, warehouses, or similar facilities.
``(3)(A) Upon the request of a qualified nonprofit agency for the
blind or other severely handicapped that is to provide a commodity or
service to the Federal Government under the Javits-Wagner-O'Day Act,
the Administrator may provide any of the services specified in
subsection (a) to such agency to the extent practicable.
``(B) A nonprofit agency receiving services under the authority of
subparagraph (A) shall use the services directly in making or providing
an approved commodity or approved service to the Federal Government.
``(C) In this paragraph:
``(i) The term `qualified nonprofit agency for the blind or
other severely handicapped' means--
``(I) a qualified nonprofit agency for the blind,
as defined in section 5(3) of the Javits-Wagner-O'Day
Act (41 U.S.C. 48b(3)); and
``(II) a qualified nonprofit agency for other
severely handicapped, as defined in section 5(4) of
such Act (41 U.S.C. 48b(4)).
``(ii) The terms `approved commodity' and `approved
service' mean a commodity and a service, respectively, that has
been determined by the Committee for Purchase from the Blind
and Other Severely Handicapped under section 2 of the Javits-
Wagner-O'Day Act (41 U.S.C. 47) to be suitable for procurement
by the Federal Government.
``(iii) The term `Javits-Wagner-O'Day Act' means the Act
entitled `An Act to create a Committee on Purchases of Blind-
made Products, and for other purposes', approved June 25, 1938
(41 U.S.C. 46-48c), commonly referred to as the Wagner-O'Day
Act, that was revised and reenacted in the Act of June 23, 1971
(85 Stat. 77), commonly referred to as the Javits-Wagner-O'Day
Act.''.
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 striking out ``(a) The head of an agency'' and
inserting in lieu thereof ``(b) Payment Authority.--The head of
an agency'';
(3) by striking out ``(b) Payments'' and inserting in lieu
thereof ``(d) Payment Amount.--Payments'';
(4) by striking out ``(c) Advance payments'' and inserting
in lieu thereof ``(e) Security for Advance Payments.--Advance
payments'';
(5) by striking out ``(d)(1) The Secretary of Defense'' and
inserting in lieu thereof ``(f) Conditions for Progress
Payments.--(1) The Secretary of Defense''; and
(6) by striking out ``(e)(1) In any case'' and inserting in
lieu thereof ``(h) Action in Case of Fraud.--(1) In any case''.
(b) Financing Policy.--Such section, as amended by subsection (a),
is further amended by inserting after the section heading the following
new subsection (a):
``(a) Policy.--Payments authorized under this section and made for
financing purposes should be made periodically or, when appropriate, on
an advance basis and should be so made in a timely manner to facilitate
contract performance while protecting the security interests of the
Government. Government financing shall be provided only to the extent
necessary to ensure prompt and efficient performance and only after the
availability of private financing is considered. A contractor's use of
funds received as contract financing and the contractor's financial
condition shall be monitored. If the contractor is a small business
concern, special attention shall be given to meeting the contractor's
financial need.''.
(c) Performance-Based Payments.--Such section, as amended by
subsection (a), is further amended by inserting after subsection (b)
the following new subsection (c):
``(c) Performance-Based Payments.--Whenever practicable, payments
under subsection (b) shall be made on any of the following bases:
``(1) Performance measured by objective, quantifiable
methods such as receipt of items by the Federal Government,
work measurement, or statistical process controls.
``(2) Accomplishment of events defined in the program
management plan.
``(3) Other quantifiable measures of results.''.
(d) Terminology Correction.--Such section, as amended by subsection
(a)(2), is further amended in subsection (b)(2) by striking out
``bid''.
(e) Effective Date of Lien Related to Advance Payments.--Such
section, as amended by subsection (a)(4), is further amended in
subsection (e) 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''.
(f) Conditions for Progress Payments.--Such section, as amended by
subsection (a)(5), is further amended in subsection (f)--
(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.''.
(g) Navy Contracts.--Such section, as amended by subsection (a)(5),
is further amended by inserting after subsection (f) the following new
subsection (g):
``(g) 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.''.
(h) Conforming and Clerical Amendments.--
(1) Cross reference.--Such section, as amended by
subsection (a), is further amended in subsections (d) and (e)
by striking out ``subsection (a)'' and inserting in lieu
thereof ``subsection (b)''.
(2) Table of contents.--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.''.
(i) 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.
SEC. 2002. CONTRACTS: VOUCHERING PROCEDURES.
(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 inserting in
lieu thereof the following:
``contract financing'';
(2) by striking out ``(a) Any executive agency'' and
inserting in lieu thereof ``(b) Payment Authority.--Any
executive agency'';
(3) by striking out ``(b) Payments'' and inserting in lieu
thereof ``(d) Payment Amount.--Payments''; and
(4) by striking out ``(c) Advance payments'' and inserting
in lieu thereof ``(e) Security for Advance Payments.--Advance
payments''.
(b) Financing Policy.--Such section, as amended by subsection (a),
is further amended by inserting after the section heading the following
new subsection (a):
``(a) Policy.--Payments authorized under this section and made for
financing purposes should be made periodically or, when appropriate, on
an advance basis and should be so made in a timely manner to facilitate
contract performance while protecting the security interests of the
Government. Government financing shall be provided only to the extent
necessary to ensure prompt and efficient performance and only after the
availability of private financing is considered. A contractor's use of
funds received as contract financing and the contractor's financial
condition shall be monitored. If the contractor is a small business
concern, special attention shall be given to meeting the contractor's
financial need.''.
(c) Performance-Based Payments.--Such section, as amended by
subsection (a), is further amended by inserting after subsection (b)
the following new subsection (c):
``(c) Performance-Based Payments.--Whenever practicable, payments
under subsection (b) shall be made on any of the following bases:
``(1) Performance measured by objective, quantifiable
methods such as receipt of items by the Federal Government,
work measurement, or statistical process controls.
``(2) Accomplishment of events defined in the program
management plan.
``(3) Other quantifiable measures of results.''.
(d) Terminology Correction.--Such section, as amended by subsection
(a)(2), is further amended in subsection (b)(2) by striking out
``bid''.
(e) Effective Date of Lien Related to Advance Payments.--Such
section, as amended by subsection (a)(4), is further amended in
subsection (e) 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''.
(f) Revision of Civilian Agency Provision To Ensure Uniform
Requirements for Progress Payments.--
(1) In general.--Such section, as amended by subsection
(a), is further amended by adding at the end the following:
``(f) 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.
``(g) 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.
(g) Conforming and Clerical Amendments.--
(1) Reference.--Section 305 of the Federal Property and
Administrative Services Act of 1949, as amended by subsection
(a), is further amended in subsections (d) and (e) by striking
out ``subsection (a)'' and inserting in lieu thereof
``subsection (b)''.
(2) Table of contents.--The table of contents in the first
section of such Act is amended by striking out the item
relating to section 305 and inserting in lieu thereof the
following:
``Sec. 305. Contract financing.''.
Subtitle B--Cost Principles
PART I--ARMED SERVICES ACQUISITIONS
SEC. 2101. ALLOWABLE CONTRACT COSTS.
(a) Comptroller General Evaluation.--Section 2324 is amended by
striking out subsection (l).
(b) Covered Contract Defined.--Subsection (m) of section 2324 of
title 10, United States Code, is amended to read as follows:
``(l)(1) 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.
``(2) Effective on October 1 of each year that is divisible by 5,
the amount set forth in paragraph (1) shall be adjusted to the amount
that is equal to the fiscal year 1994 constant dollar value of the
amount set forth. An amount, as so adjusted, that is not evenly
divisible by $50,000 shall be rounded to the nearest multiple of
$50,000. In the case of an amount that is evenly divisible by $25,000
but is not evenly divisible by $50,000, the amount shall be rounded to
the next higher multiple of $50,000.''.
SEC. 2102. 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.
(a) Revision of Civilian Agency Provision To Ensure Uniform
Treatment of 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:
``allowable costs
``Sec. 306. (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 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 regulations issued
by the agency head) 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.--In accordance with the Federal
Acquisition Regulation, the agency head may waive a penalty under
subsection (b) 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 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 in
accordance with 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) Subject to the availability of appropriations, the head of
an executive agency, in awarding a covered contract, may waive in
accordance with the Federal Acquisition Regulation 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 head of each executive agency shall implement this
section with respect to contracts of that executive agency in
accordance with the Federal Acquisition Regulation. The provisions of
the Federal Acquisition applicable to the implementation of this
section may include definitions, exclusions, limitations, and
qualifications.
``(f) Required Regulations.--(1) 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)) 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 Required Regulations to Subcontractors.--The
regulations prescribed to carry out 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 by the agency head concerned.
``(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, under regulations prescribed by such agency
head, 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
Regulations.
``(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) Covered Contract Defined.--(1) 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.
``(2) Effective on October 1 of each year that is divisible by 5,
the amount set forth in paragraph (1) shall be adjusted to the amount
that is equal to the fiscal year 1994 constant dollar value of the
amount set forth. An amount, as so adjusted, that is not evenly
divisible by $50,000 shall be rounded to the nearest multiple of
$50,000. In the case of an amount that is evenly divisible by $25,000
but is not evenly divisible by $50,000, the amount shall be rounded to
the next higher multiple of $50,000.''.
(b) Clerical Amendment.--The table of contents in the first section
of such Act is amended by striking out the item relating to section 306
and inserting in lieu thereof the following:
``Sec. 306. Allowable costs.''.
PART III--ACQUISITIONS GENERALLY
SEC. 2191. TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS.
Section 24 of the Office of Federal Procurement Policy Act (41
U.S.C. 420) is repealed.
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 cost-
reimbursement, incentive, time-and-materials, labor-
hour, or price-redeterminable subcontract under a
contract referred to in subparagraph (A) or under any
combination of such 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) Limitation on Preaward Audits Relating to Indirect Costs.--
The head of an agency may not perform a preaward audit to evaluate
proposed indirect costs under any contract, subcontract, or
modification to be entered into in accordance with this chapter in any
case in which the contracting officer determines that the objectives of
the audit can reasonably be met by accepting the results of an audit
conducted by any other department or agency of the Federal Government
within one year preceding the date of the contracting officer's
determination.
``(c) Subpoena Power.--(1) The Director of the Defense Contract
Audit Agency (or any successor agency) may require by subpoena the
production of records of a contractor, access to which is provided to
the Secretary of Defense or Secretary of a military department by
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.
``(d) 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).
``(3) Paragraph (1) may not be construed to require a contractor or
subcontractor to create or maintain any record that the contractor or
subcontractor does not maintain in the ordinary course of business or
pursuant to another provision of law.
``(e) Limitation.--The right of the head of an agency under
subsection (a), and the right of the Comptroller General under
subsection (d), 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 is
inapplicable with respect 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) 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.--
(1) 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 1251(a), is further amended by inserting
after section 304A the following new section:
``examination of records of contractor
``Sec. 304B. (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 cost-
reimbursement, incentive, time-and-materials, labor-
hour, or price-redeterminable subcontract under a
contract referred to in subparagraph (A) or under any
combination of such 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 304A 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) Limitation on Preaward Audits Relating to Indirect Costs.--
The agency head may not perform a preaward audit to evaluate proposed
indirect costs under any contract, subcontract, or modification to be
entered into in accordance with this title in any case in which the
contracting officer determines that the objectives of the audit can
reasonably be met by accepting the results of an audit conducted by any
other department or agency of the Federal Government within one year
preceding the date of the contracting officer's determination.
``(c) Subpoena Power.--(1) The agency head may require by subpoena
the production of records of a contractor, access to which is provided
by 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 delegated.
``(4) In the year following a year in which the head of an
executive agency exercises the authority provided in paragraph (1), the
agency head shall submit to the Committee on Governmental Affairs of
the Senate and the Committee on Government Operations of the House of
Representatives a report on the exercise of such authority during such
preceding year and the reasons why such authority was exercised in any
instance.
``(d) 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.
``(3) Paragraph (1) may not be construed to require a contractor or
subcontractor to create or maintain any record that the contractor or
subcontractor does not maintain in the ordinary course of business or
pursuant to another provision of law--
``(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).
``(e) Limitation.--The right of an agency head under subsection
(a), and the right of the Comptroller General under subsection (d),
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 is
inapplicable with respect 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) 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 table of contents in the first
section of such Act, as amended by section 1251(b), is further
amended by inserting after the item relating to section 304A
the following:
``Sec. 304B. Examination of records of contractor.''.
(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. EXCEPTIONS TO COVERAGE.
Section 26(f)(2) of the Office of Federal Procurement Policy Act
(41 U.S.C. 422(f)(2)) is amended--
(1) by inserting ``(A)'' after ``(2)'';
(2) by striking out ``, other than contracts or
subcontracts'' and all that follows and inserting in lieu
thereof a period; and
(3) by inserting at the end the following:
``(B) Subparagraph (A) does not apply to the following contracts or
subcontracts:
``(i) Contracts or subcontracts where the price negotiated
is based on established catalog or market prices of commercial
items sold in substantial quantities to the general public.
``(ii) Contracts or subcontracts where the price negotiated
is based on prices set by law or regulation.
``(iii) Any other firm fixed-price contract or subcontract
for commercial items which is excepted from the requirement to
provide cost or pricing data pursuant to subsection (b) or (d)
of section 2306a of title 10, United States Code, or subsection
(b) or (d) of section 304A of the Federal Property and
Administrative Services Act of 1949.
``(C) In this paragraph, the term `subcontract' includes a transfer
of commercial items between divisions, subsidiaries, or affiliates of a
contractor.''.
SEC. 2302. 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 the 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
PART I--ARMED SERVICES ACQUISITIONS
SEC. 2401. PROCUREMENT OF CRITICAL AIRCRAFT AND SHIP SPARE PARTS;
QUALITY CONTROL.
(a) Repeal.--Section 2383 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 2383.
SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.
Section 2403(h) of title 10, United States Code, 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.''.
PART II--ACQUISITIONS GENERALLY
SEC. 2451. SECTION 3737 OF THE REVISED STATUTES: EXPANSION OF AUTHORITY
TO PROHIBIT SETOFFS AGAINST ASSIGNEES; REORGANIZATION OF
SECTION; REVISION OF OBSOLETE PROVISIONS.
Section 3737 of the Revised Statutes (41 U.S.C. 15) is amended to
read as follows:
``Sec. 3737. (a) No contract or order, or any interest therein,
shall be transferred by the party to whom such contract or order is
given to any other party, and any such transfer shall cause the
annulment of the contract or order transferred, so far as the United
States is concerned. All rights of action, however, for any breach of
such contract by the contracting parties, are reserved to the United
States.
``(b) The provisions of subsection (a) shall not apply in any case
in which the moneys due or to become due from the United States or from
any agency or department thereof, under a contract providing for
payments aggregating $1,000 or more, are assigned to a bank, trust
company, or other financing institution, including any Federal lending
agency, provided:
``(1) That, in the case of any contract entered into after
October 9, 1940, no claim shall be assigned if it arises under
a contract which forbids such assignment.
``(2) That, unless otherwise expressly permitted by such
contract, any such assignment shall cover all amounts payable
under such contract and not already paid, shall not be made to
more than one party, and shall not be subject to further
assignment, except that any such assignment may be made to one
party as agent or trustee for two or more parties participating
in such financing.
``(3) That, in the event of any such assignment, the
assignee thereof shall file written notice of the assignment
together with a true copy of the instrument of the assignment
with--
``(A) the contracting officer or the head of his
department or agency;
``(B) the surety or sureties upon the bond or
bonds, if any, in connection with such contract; and
``(C) the disbursing officer, if any, designated in
such contract to make payment.
``(c) Notwithstanding any law to the contrary governing the
validity of assignments, any assignment pursuant to this section shall
constitute a valid assignment for all purposes.
``(d) In any case in which moneys due or to become due under any
contract are or have been assigned pursuant to this section, no
liability of any nature of the assignor to the United States or any
department or agency thereof, whether arising from or independently of
such contract, shall create or impose any liability on the part of the
assignee to make restitution, refund, or repayment to the United States
of any amount heretofore since July 1, 1950, or hereafter received
under the assignment.
``(e) Any contract of the Department of Defense, the General
Services Administration, the Department of Energy, or any other
department or agency of the United States designated by the President,
except any such contract under which full payment has been made, may,
upon a determination of need by the President, provide or be amended
without consideration to provide that payments to be made to the
assignee of any moneys due or to become due under such contract shall
not be subject to reduction or setoff. Each such determination of need
shall be published in the Federal Register.
``(f) If a provision described in subsection (e) or a provision to
the same general effect has been at any time heretofore or is hereafter
included or inserted in any such contract, payments to be made
thereafter to an assignee of any moneys due or to become due under such
contract shall not be subject to reduction or setoff for any liability
of any nature of the assignor to the United States or any department or
agency thereof which arises independently of such contract, or
hereafter for any liability of the assignor on account of--
``(1) renegotiation under any renegotiation statute or
under any statutory renegotiation article in the contract;
``(2) fines;
``(3) penalties (which term does not include amounts which
may be collected or withheld from the assignor in accordance
with or for failure to comply with the terms of the contract);
or
``(4) taxes, social security contributions, or the
withholding or non withholding of taxes or social security
contributions, whether arising from or independently of such
contract.
``(g) Except as herein otherwise provided, nothing in this section
shall be deemed to affect or impair rights of obligations heretofore
accrued.''.
SEC. 2452. REPEAL OF REQUIREMENT FOR DEPOSIT OF CONTRACTS WITH GAO.
Section 3743 of the Revised Statutes (41 U.S.C. 20) is repealed.
Subtitle F--Claims and Disputes
PART I--ARMED SERVICES ACQUISITIONS
SEC. 2501. CERTIFICATION OF CONTRACT CLAIMS.
(a) DoD Certification Requirement in Conflict With Governmentwide
Requirement.--
(1) Inapplicability of requirement to contract claims.--
Section 2410 of title 10, United States Code, is amended to
read as follows:
``Sec. 2410. Requests for equitable adjustment or other relief:
certification
``(a) Certification Requirement.--A request for equitable
adjustment to contract terms or request for relief under Public Law 85-
804 (50 U.S.C. 1431 et seq.) that exceeds the simplified acquisition
threshold may not be paid unless a person authorized to certify the
request on behalf of the contractor certifies, at the time the request
is submitted, that--
``(1) the request is made in good faith, and
``(2) the supporting data are accurate and complete to the
best of that person's knowledge and belief.''.
(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 and inserting in lieu
thereof the following:
``2410. Requests for equitable adjustment or other relief:
certification.''.
(b) Restriction on Legislative Payment of Claims.--Section 2410 of
title 10, United States Code, as amended by subsection (a), is further
amended by adding at the end the following new subsection:
``(b) 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 September 30, 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.''.
(c) Definition.--Section 2410, as amended by subsections (a) and
(b), is further amended by adding at the end the following:
``(c) Definition.--In this section, the term `simplified
acquisition threshold' has the meaning given that term in section
2302(4) of this title.''.
(d) Repeal of Related Provisions.--
(1) Certification regulations for contract claims exceeding
$100,000.--
(A) Repeal.--Section 2410e 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 2410e.
(2) Conforming repeal.--Section 813(b) of the National
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484, 106 Stat. 2453), is repealed.
SEC. 2502. SHIPBUILDING CLAIMS.
(a) Limitation on Period for Submission.--
(1) Increased period.--Subsection (a) of section 2405 of
title 10, United States Code, is amended--
(A) by striking out ``after December 7, 1983,'' and
inserting in lieu thereof ``on or after the date of the
enactment of the Federal Acquisition Streamlining Act
of 1994''; and
(B) by striking out ``18 months'' and inserting in
lieu thereof ``6 years''.
(2) Savings provision.--Notwithstanding the 6-year period
provided in subsection (a) of section 2405 of title 10, United
States Code, as amended by paragraph (1), the period applicable
under such subsection in the case of a shipbuilding contract
entered into after December 7, 1983, and before the date of the
enactment of the Federal Acquisition Streamlining Act of 1994
shall continue to be 18 months.
(b) Resubmission With Corrected Certification.--Subsection (c) of
such section is repealed.
PART II--ACQUISITIONS GENERALLY
SEC. 2551. CLAIMS JURISDICTION OF UNITED STATES DISTRICT COURTS AND THE
UNITED STATES COURT OF FEDERAL CLAIMS.
(a) Concurrent Jurisdiction of United States District Courts Under
the Little Tucker Act.--Subsection (a) of section 1346 of title 28,
United States Code, is amended to read as follows:
``(a)(1) The district courts shall have original jurisdiction,
concurrent with the United States Court of Federal Claims, of any civil
action against the United States for the recovery of any internal-
revenue tax alleged to have been erroneously or illegally assessed or
collected, or any penalty claimed to have been collected without
authority or any sum alleged to have been excessive or in any manner
wrongfully collected under the internal-revenue laws.
``(2)(A) Except as provided in subparagraph (B), the district
courts shall have original jurisdiction, concurrent with the United
States Court of Federal Claims, of any other civil action or claim
against the United States, not exceeding $10,000 in amount, founded
either upon the Constitution, or any Act of Congress, or any regulation
of an executive department, or upon any express or implied contract
with the United States, or for liquidated or unliquidated damages in
cases not sounding in tort.
``(B) The district courts shall not have jurisdiction over any
civil action or claim against the United States or any Federal entity
which relates in any manner to a contract to which the Contract
Disputes Act of 1978 (41 U.S.C. 601 et seq.) applies, including a claim
that seeks to establish the existence or nonexistence of such a
contract, seeks to establish that such a contract is void, or seeks to
determine and construe the terms of such a contract. The district
courts do not have jurisdiction over any civil action or claim
described in the preceding sentence pursuant to section 1331, 1334, or
1346(a)(2)(B) of this title, any provision of law giving a Federal
entity the right to sue or be sued in its own name, or any other
provision of law.''.
(b) Jurisdiction of the United States Court of Federal Claims Under
the Tucker Act.--Section 1491 of title 28, United States Code, as
amended by section 1422, is further amended by inserting after
subsection (c) the following:
``(d)(1) The United States Court of Federal Claims shall have
jurisdiction over any civil action or claim against the United States
which relates in any manner to a contract to which the Contract
Disputes Act of 1978 (41 U.S.C. 601 et seq,) applies, including a civil
action or claim that seeks to establish the existence or nonexistence
of such a contract, seeks to establish that such contract is void, or
seeks to determine and construe the terms of any such contract.
``(2) The jurisdiction of the United States Court of Federal Claims
is, pursuant to section 1346(a)(2)(B) of this title, exclusive as to
the district courts of the United States.''.
SEC. 2552. CONTRACT DISPUTES ACT IMPROVEMENTS.
(a) Period for Filing Claims.--
(1) Six-year limitation.--Section 6 of the Contract
Disputes Act of 1978 (41 U.S.C. 605) is amended in subsection
(a) by inserting after the second sentence the following:
``Each claim by a contractor against the government relating to
a contract and each claim by the government against a
contractor relating to a contract shall be submitted within 6
years after the occurrence of the event or events giving rise
to the claim. The preceding sentence does not apply to a claim
by the government against a contractor that is based on a claim
by the contractor involving fraud.''.
(2) Limitation on applicability to existing contracts.--
Notwithstanding the third sentence of section 6(a) of the
Contract Disputes Act of 1978, as added by paragraph (1), if a
contract in existence on the date of the enactment of this Act
requires that a claim referred to in that sentence be submitted
earlier than 6 years after the occurrence of the event or
events giving rise to the claim, then the claim shall be
submitted within the period required by the contract. The
preceding sentence does not apply to a claim by the Federal
Government against a contractor that is based on a claim by the
contractor involving fraud.
(b) Increased Threshold for Certification, Decision, and
Notification Requirements.--Subsection (c) of such section is amended
by striking out ``$50,000'' each place it appears and inserting in lieu
thereof ``$100,000''.
(c) Increased Maximum for Applicability of Accelerated
Procedures.--Section 8(f) of the Contract Disputes Act of 1978 (41
U.S.C. 607(f)) is amended by striking out ``$50,000'' in the first
sentence and inserting in lieu thereof ``$150,000''.
(d) Increased Maximum for Applicability of Small Claims
Procedure.--Section 9(a) of the Contract Disputes Act of 1978 (41
U.S.C. 608(a)) is amended by striking out ``$10,000'' in the first
sentence and inserting in lieu thereof ``$50,000''.
(e) Reduced Period for Filing Action in Court of Federal Claims.--
Section 10(a)(3) of such Act (41 U.S.C. 609(a)(3)) is amended by
striking out ``twelve months'' and inserting in lieu thereof ``90
days''.
SEC. 2553. EXTENSION OF ALTERNATIVE DISPUTE RESOLUTION AUTHORITY.
Section 6(e) of the Contracts Disputes Act of 1978 (41 U.S.C.
605(e)) is amended by striking out ``October 1, 1995'' and inserting in
lieu thereof ``October 1, 1999''.
SEC. 2554. EXPEDITED RESOLUTION OF CONTRACT ADMINISTRATION COMPLAINTS.
(a) Regulations Required.--The Federal Acquisition Regulation shall
include provisions that require a contracting officer--
(1) to make every reasonable effort to respond in writing
within 30 days to any written request for a contracting
officer's decision with respect to a matter relating to the
administration of a contract that is received from a small
business concern; and
(2) in the event that the contracting officer is unable to
render a decision within the 30-day period, to transmit to the
contractor within such period a written notification of a
specific date by which the contracting officer expects to reach
a decision.
(b) Rule of Construction.--Nothing in this provision shall be
considered as creating any rights under the Contract Disputes Act (41
U.S.C. 601 et seq.).
(c) Definition.--In this section, the term ``small business
concern'' means a business concern that meets the requirements of
section 3(a) of the Small Business Act (15 U.S.C. 632(a)) and the
regulations promulgated pursuant to that section.
TITLE III--SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES
Subtitle A--Major Systems Statutes
SEC. 3001. 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 cost of a
program--
``(A) be prepared by an office or other entity that
is not under the supervision, direction, or control of
the military department, Defense Agency, or other
component of the Department of Defense that is directly
responsible for carrying out the development or
acquisition of the program; and
``(B) include all costs of development,
procurement, and operations and support, without regard
to funding source or management control; and
``(2) that the manpower estimate include the total
personnel required to train for, operate, maintain, and support
the program upon full operational deployment.''.
(b) Terminology Correction.--Subsection (a) of such section is
amended by striking out ``full-scale engineering development'' and
inserting in lieu thereof ``engineering and manufacturing
development''.
SEC. 3002. ENHANCED PROGRAM STABILITY.
(a) Baseline Descriptions and Deviation Reporting.--Section 2435 of
title 10, United States Code, is amended--
(1) in subsection (a)--
(A) by striking out paragraph (2); and
(B) in paragraph (1)--
(i) by striking out ``(1)''; and
(ii) by redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively;
and
(2) by striking out subsection (b) and inserting in lieu
thereof the following:
``(b) Regulations.--The Secretary of Defense shall prescribe
regulations governing--
``(1) the content of baseline descriptions, which shall
include the program cost, the program schedule, and a program
performance description;
``(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 deviation reports within the
Department of Defense; and
``(4) procedures for submission and approval of revised
baseline descriptions.
``(c) Baseline Description Required Before Obligation of Funds.--
(1) Except as provided in paragraph (2), no amount appropriated or
otherwise made available to the Department of Defense may be obligated
for a major defense acquisition program before a baseline description
for the program is approved in accordance with the procedures
prescribed pursuant to subsection (b)(4).
``(2) An obligation otherwise prohibited by paragraph (1) may be
incurred if approved in advance by the Under Secretary of Defense for
Acquisition and Technology.''.
(b) Terminology Correction.--Subsection (a)(1) of such section, as
redesignated by subsection (a)(1)(B)(ii), is amended by striking out
``full-scale engineering development'' and inserting in lieu thereof
``engineering and manufacturing development''.
SEC. 3003. REPEAL OF REQUIREMENT TO DESIGNATE CERTAIN MAJOR DEFENSE
ACQUISITION PROGRAMS AS DEFENSE ENTERPRISE PROGRAMS.
Section 809 of the National Defense Authorization Act for Fiscal
Year 1991 (Public Law 101-510; 10 U.S.C. 2430 note) is amended--
(1) by striking out subsection (d); and
(2) by redesignating subsections (e), (f), (g), and (h) as
subsections (d), (e), (f), and (g), respectively.
SEC. 3004. 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. 3005. 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. DIRECTOR OF OPERATIONAL TEST AND EVALUATION TO REPORT
DIRECTLY TO SECRETARY OF DEFENSE.
Section 139(c) of title 10, United States Code, is amended by
inserting after ``(c)'' the following: ``The Director reports directly,
without intervening review or approval, to the Secretary of Defense and
Deputy Secretary of Defense personally.''.
SEC. 3012. RESPONSIBILITY OF DIRECTOR OF OPERATIONAL TEST AND
EVALUATION FOR LIVE FIRE TESTING.
(a) Conduct of Live Fire Testing.--Subsection (b) of section 139 of
title 10, United States Code, is amended--
(1) by striking out ``and'' at the end of paragraph (4);
(2) by striking out the period at the end of paragraph (5)
and inserting in lieu thereof ``; and''; and
(3) by adding at the end the following new paragraph:
``(6) conduct the live fire testing activities of the
Department of Defense provided for under section 2366 of this
title.''.
(b) Annual Report on Live Fire Testing.--Subsection (f) of such
section is amended by inserting ``(including live fire testing
activities)'' in the first sentence after ``operational test and
evaluation activities''.
SEC. 3013. REQUIREMENT FOR UNCLASSIFIED VERSION OF ANNUAL REPORT ON
OPERATIONAL TEST AND EVALUATION.
Section 139(f) of title 10, United States Code, is amended by
inserting after the second sentence the following new sentence: ``If
the Director submits the report to Congress in a classified form, the
Director shall concurrently submit an unclassified version of the
report to Congress.''.
Subtitle C--Service Specific Laws
SEC. 3021. GRATUITOUS SERVICES OF OFFICERS OF CERTAIN RESERVE
COMPONENTS.
Section 279 of title 10, United States Code, is amended--
(1) by striking out ``Notwithstanding'' and inserting in
lieu thereof ``(a) Acceptance by Secretary of a Military
Department.--Notwithstanding''; and
(2) by adding at the end the following new subsection:
``(b) Acceptance by Secretary of Defense.--Notwithstanding section
1342 of title 31, the Secretary of Defense may accept the gratuitous
services of an officer of a reserve component (other than an officer of
the Army National Guard of the United States or the Air National Guard
of the United States) in consultation upon matters relating to the
armed forces.''.
SEC. 3022. AUTHORITY TO RENT SAMPLES, DRAWINGS, AND OTHER INFORMATION
TO OTHERS.
Subchapter V of chapter 148 of title 10, United States Code, is
amended in section 2541(a) by inserting ``rent,'' after ``sell,'' each
place it appears in paragraphs (1) and (2).
SEC. 3023. CIVIL RESERVE AIR FLEET.
(a) Definitions.--Section 9511 of title 10, United States Code, is
amended--
(1) in paragraph (1)--
(A) by inserting ```civil aircraft','' after
```person','';
(B) by striking out ``meaning'' and inserting in
lieu thereof ``meanings''; and
(C) by striking out ``(49 U.S.C. 1301)'' and
inserting in lieu thereof ``(49 U.S.C. App. 1301)'';
(2) in paragraph (2), by striking out ``passenger-cargo''
and inserting in lieu thereof ``passenger cargo'';
(3) in paragraph (3), by striking out ``cargo-capable'' and
inserting in lieu thereof ``cargo capable'';
(4) by striking out paragraph (5) and inserting in lieu
thereof the following:
``(5) The term `cargo convertible aircraft' means a
passenger aircraft equipped or designed so that all or
substantially all of the main deck of the aircraft can be
readily converted for the carriage of property or mail.'';
(5) by striking out paragraph (6);
(6) by redesignating paragraph (7) as paragraph (6);
(7) by redesignating paragraph (8) as paragraph (7) and--
(A) in subparagraph (A) of such paragraph, by
inserting ``under section 9512 of this title'' after
``and who contracts with the Secretary'';
(B) by striking out ``or'' at the end of such
subparagraph (A); and
(C) by inserting before the period at the end of
such paragraph the following: ``, or (C) who owns or
controls existing aircraft, or will own or control new
aircraft, and who contractually commits all or some of
such aircraft to the Civil Reserve Air Fleet'';
(8) by redesignating paragraphs (9), (10), (11), and (12)
as paragraphs (8), (9), (10), and (11), respectively; and
(9) in paragraph (11), as so redesignated--
(A) by striking out ``interoperability'' and
inserting in lieu thereof ``compatibility''; and
(B) by striking out ``a cargo-convertible, cargo-
capable, or passenger-cargo combined aircraft'' and
inserting in lieu thereof ``an aeromedical aircraft or
a cargo convertible, cargo capable, or passenger cargo
combined aircraft''.
(b) Consolidation of Provisions Relating to Contractual Commitment
of Aircraft.--Chapter 931 of such title is amended--
(1) by redesignating subsections (b) and (c) of section
9512 as subsections (c) and (d), respectively;
(2) by redesignating subsection (a) of section 9513 as
subsection (b), transferring such subsection (as so
redesignated) to section 9512, and inserting such subsection
after subsection (a);
(3) by redesignating subsection (b) of section 9513 as
subsection (e) and transferring such subsection (as so
redesignated) to the end of section 9512;
(4) in subsection (c) of section 9512, as redesignated by
paragraph (1), by striking out ``the terms required by section
9513 of this title and'';
(5) in subsection (e) of section 9512, as redesignated and
transferred to such section by paragraph (3), by striking out
``under section 9512 of this title'' and inserting in lieu
thereof ``entered into under this section''; and
(6) by striking out the heading of section 9513.
(c) Use of Military Installations by Contractors.--
(1) Authority.--Such chapter, as amended by subsection (b),
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 service 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 for commercial operations not
required by the Department of Defense and may provide in contracts
under subsection (a) for different levels and types of uses by
different contractors.
``(c) Disposition of Payments for Use.--Notwithstanding any other
provision of law, amounts collected from the contractor for landing
fees, services, supplies, or other charges authorized to be collected
under the contract shall be credited to the appropriations of the armed
forces having jurisdiction over the military installation to which the
contract pertains. Amounts so credited to an appropriation shall be
available for obligation for the same period as the appropriation to
which credited.
``(d) Hold Harmless Requirement.--A contract entered into under
subsection (a) shall provide that the contractor agrees to indemnify
and hold harmless the United States 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.
``(e) Reservation of Right To Exclude Contractor.--A contract
entered into under subsection (a) shall provide that the Secretary or,
in the case of an installation under the jurisdiction of an armed force
other than the Air Force, the Secretary concerned may at any time and
without prior notice deny access to an installation designated under
the contract if military exigencies require such action.''.
(2) 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.''.
SEC. 3024. EXCHANGE OF PERSONNEL.
(a) Exchange Authority.--Subchapter II of chapter 138 of title 10,
United States Code, is amended by adding at the end the following new
section:
``Sec. 2350k. Exchange of personnel
``(a) International Exchange Agreements Authorized.--Under
regulations prescribed by the Secretary of Defense, the Secretary and
the secretaries of the military departments are each authorized to
enter into agreements with the governments of foreign countries for the
exchange of military and civilian personnel of the Department of
Defense and military and civilian personnel of the defense departments
or ministries of such foreign governments.
``(b) Assignment of Personnel.--Pursuant to such agreements,
personnel of the foreign defense departments or ministries may be
assigned to positions in the Department of Defense, and personnel of
the Department of Defense may be assigned to positions in foreign
defense departments or ministries. Agreements for the exchange of
personnel engaged in research and development activities may provide
for assignments to positions in private industry that support the
defense departments or ministries. The specific positions and the
individuals to be assigned must be acceptable to both the sending
government and the host government.
``(c) Reciprocity of Personnel Qualifications Required.--Each
government shall be required under an agreement authorized by
subsection (a) to provide personnel having qualifications, training,
and skills that are essentially equal to those of the personnel
provided by the other government.
``(d) Payment of Personnel Costs.--Each government shall pay the
salary, per diem, cost of living, travel, cost of language or other
training, and other costs (except for cost of temporary duty directed
by the host government and costs incident to the use of host government
facilities in the performance of assigned duties) for its own personnel
in accordance with the laws and regulations of such government that
pertain to such matters.''.
(b) Clerical Amendment.--The table of sections at the beginning of
subchapter II of such chapter is amended by adding at the end the
following new item:
``2350k. Exchange of personnel.''.
SEC. 3025. SCIENTIFIC INVESTIGATION AND RESEARCH FOR THE NAVY.
(a) Repeal.--Section 7203 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 631 of such title is amended by striking out the item relating
to section 7203.
SEC. 3026. CONSTRUCTION OF COMBATANT AND ESCORT VESSELS AND ASSIGNMENT
OF VESSEL PROJECTS.
(a) Repeal of Obsolete and Internally Inconsistent Provisions.--
Section 7299a of title 10, United States Code, is amended--
(1) by striking out subsection (a); and
(2) by redesignating subsections (b) and (c) as subsections
(a) and (b), respectively.
(b) Conforming Amendment.--Subsection (b) of such section, as
redesignated by subsection (a)(2), is amended in paragraph (2) by
striking out ``subsection (a) or''.
SEC. 3027. REPEAL OF REQUIREMENT FOR CONSTRUCTION OF VESSELS ON PACIFIC
COAST.
(a) Repeal.--Section 7302 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 7302.
SEC. 3028. AUTHORITY TO TRANSFER BY GIFT A VESSEL STRICKEN FROM NAVAL
VESSEL REGISTER.
Section 7306(a)(1) of title 10, United States Code, is amended by
inserting ``Territory,'' after ``State,''.
SEC. 3029. NAVAL SALVAGE FACILITIES.
Chapter 637 of title 10, United States Code, is amended--
(1) in section 7361--
(A) in subsection (a), by inserting ``Authority To
Provide Facilities by Contract or Otherwise.--'' after
``(a)'';
(B) in subsection (b), by inserting ``Contracts
Affecting the Department of Transportation.--'' after
``(b)''; and
(C) by striking out subsection (c) and inserting in
lieu thereof the following new subsection (c):
``(c) Limitation on Term Contracts.--Term contracts may be entered
into for purposes of this section only after--
``(1) it has been demonstrated to the satisfaction of the
Secretary of the Navy that available commercial salvage
facilities are inadequate to meet national defense
requirements; and
``(2) the Secretary of the Navy determines that adequate
public notice of intent to exercise the authority under this
subsection has been provided.'';
(2) by designating the text of section 7362 as subsection
(d) and transferring such text, as so designated, to the end of
section 7361 of title 10, United States Code;
(3) in subsection (d) of section 7361 of such title, as so
designated and transferred, by inserting before ``The
Secretary'' the following: ``Commercial Use of Naval Vessels
and Equipment.--'';
(4) by designating the text of section 7363 as subsection
(e) and transferring such text, as so designated, to the end of
section 7361 of title 10, United States Code;
(5) in subsection (e) of section 7361 of such title, as so
designated and transferred, by inserting before ``Before any
salvage vessel'' the following: ``Conditions for Transfer of
Equipment.--'';
(6) by designating the text of section 7365 as subsection
(f) and transferring such text, as so designated, to the end of
section 7361 of title 10, United States Code;
(7) in subsection (f) of section 7361 of such title, as so
designated and transferred, by inserting before ``The
Secretary'' the following: ``Settlement of Claims.--'';
(8) by designating the text of section 7367 as subsection
(g) and transferring such text, as so designated, to the end of
section 7361 of title 10, United States Code;
(9) in subsection (g) of section 7361 of such title, as so
designated and transferred--
(A) by inserting before ``Money received'' the
following: ``Disposition of Receipts.--''; and
(B) by striking out ``this chapter'' in the first
sentence and inserting in lieu thereof ``this
section'';
(10) by striking out the section headings for sections
7362, 7363, 7365, and 7367;
(11) by striking out the heading for section 7361 and
inserting in lieu thereof the following:
``Sec. 7361. Navy support for salvage operations'';
and
(12) in the table of sections at the beginning of such
chapter--
(A) by striking out the item relating to section
7361 and inserting in lieu thereof the following:
``7361. Navy support for salvage operations.'';
and
(B) by striking out the items relating to sections
7362, 7363, 7365, and 7367.
Subtitle D--Department of Defense Commercial and Industrial Activities
SEC. 3051. FACTORIES AND ARSENALS: MANUFACTURE AT.
(a) Consolidation and Revision of Authority.--
(1) Authority.--Subchapter V of chapter 148 of title 10,
United States Code is amended by adding at the end the
following:
``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) Technical amendment.--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. 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 advisory and assistance services for each
department and agency as a separate object class in each budget
annually submitted to the Congress under this section.
``(2)(A) In paragraph (1), except as provided in subparagraph (B),
the term `advisory and assistance services' means the following
services when provided by nongovernmental sources:
``(i) Management and professional support services.
``(ii) Studies, analyses, and evaluations.
``(iii) Engineering and technical services.
``(B) In paragraph (1), the term `advisory and assistance services'
does not include the following services:
``(i) Routine automated data processing and
telecommunications services (as defined in the Federal
Information Resources Management Regulation prescribed by the
Administrator of General Services) unless such services are an
integral part of a contract for the procurement of advisory and
assistance services.
``(ii) Architectural and engineering services.
``(iii) Technical support of research and development
activities.
``(iv) Research on basic mathematics or medical,
biological, physical, social, psychological, or other
phenomena.''.
(b) Repeal of Source Law.--Section 512 of Public Law 102-394 (106
Stat. 1826) is repealed.
(c) Repeal of Superseded Provisions.--
(1) Title 10.--
(A) Repeal.--Section 2212 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 131 of such title is amended
by striking out the item relating to section 2212.
(2) Title 31.--
(A) Repeal.--Section 1114 of title 31, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 11 of such title is amended by
striking out the item relating to section 1114.
Subtitle E--Fuel- and Energy-Related Laws
SEC. 3061. LIQUID FUELS AND NATURAL GAS: CONTRACTS FOR STORAGE,
HANDLING, OR DISTRIBUTION.
Section 2388(a) of title 10, United States Code, is amended by
striking out ``liquid fuels and natural gas'' and inserting in lieu
thereof ``liquid fuels or natural gas''.
Subtitle F--Fiscal Statutes
SEC. 3071. DISBURSEMENT OF FUNDS OF MILITARY DEPARTMENT TO COVER
OBLIGATIONS OF ANOTHER AGENCY OF DEPARTMENT OF DEFENSE.
Subsection (c)(2) of section 3321 of title 31, United States Code,
is amended by striking out ``military departments of the'' and
inserting in lieu thereof ``The''.
Subtitle G--Miscellaneous
SEC. 3081. OBLIGATION OF FUNDS: LIMITATION.
Section 2202 of title 10, United States Code, is amended to read as
follows:
``Sec. 2202. Obligation of funds: limitation
``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.''.
SEC. 3082. 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. 3083. CODIFICATION AND REVISION OF LIMITATION ON LEASE OF VESSELS,
AIRCRAFT, AND VEHICLES.
(a) Limitation.--
(1) In general.--Chapter 141 of title 10, United States
Code, is amended by adding at the end the following new
section:
``Sec. 2410l. Lease of vessels, aircraft, and vehicles
``The head of an agency named in paragraph (1), (2), (3), or (4) of
section 2303(a) of this title 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 without previously having
considered all costs of such lease (including estimated termination
liability) and determined in writing that such lease is in the best
interest of the Government.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following:
``2410l. 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. 3084. SOFT DRINK SUPPLIES FOR EXCHANGE STORES.
Section 2424 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(c) Paragraphs (1) and (2) of subsection (b) do not apply to
contracts for the procurement of soft drinks that are manufactured in
the United States. The Secretary of Defense shall prescribe in
regulations the standards and procedures for determining whether a
particular drink is a soft drink and whether the drink was manufactured
in the United States.''.
SEC. 3085. REPEAL OF PREFERENCE FOR RECYCLED TONER CARTRIDGES.
The following provisions of law, relating to a preference for
procurement of recycled toner cartridges, are repealed:
(1) Section 630 of Public Law 102-393 (106 Stat. 1773) and
the provision of law set out in quotes in that section (42
U.S.C. 6962(j)).
(2) Section 401 of Public Law 103-123 (107 Stat. 1238).
TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL
BUSINESS, AND MISCELLANEOUS LAWS
Subtitle A--Simplified Acquisition Threshold
PART I--ESTABLISHMENT OF THRESHOLD
SEC. 4001. SIMPLIFIED ACQUISITION THRESHOLD.
(a) Term Defined.--Section 4(11) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(11)) is amended to read as
follows:
``(11) The term `simplified acquisition threshold' means
$100,000.''.
(b) Interim Reporting Rule.--Until October 1, 1999, procuring
activities shall continue to report 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 that were in effect on October 1, 1992.
PART II--SIMPLIFICATION OF PROCEDURES
SEC. 4011. SIMPLIFIED ACQUISITION PROCEDURES.
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:
``simplified acquisition procedures
``Sec. 29. (a) In order to promote efficiency and economy in
contracting and to avoid unnecessary burdens for agencies and
contractors, the Federal Acquisition Regulation shall provide for
special simplified procedures for contracts for acquisition of property
and services that are not in excess of the simplified acquisition
threshold.
``(b) Regulations prescribed pursuant to subsection (a) shall
include the following provisions:
``(1) A provision that a contract with an anticipated value
not in excess of $2,500 is not subject to section 15(j) of the
Small Business Act (15 U.S.C. 644(j)) and section 2 of title
III of the Act of March 3, 1933 (commonly known as the `Buy
America Act') (41 U.S.C. 10a et seq.).
``(2) A provision that a civilian or military official, or
employee of an agency, whose contracting authority does not
exceed $2,500 is not a procurement official for the purposes of
section 27 of this Act.
``(3) A provision that a purchase not in excess of $2,500
may be made without obtaining competitive quotations if the
contracting officer determines that the price for the purchase
is reasonable.
``(4) A requirement that purchases not in excess of $2,500
be distributed equitably among qualified suppliers.
``(c) A proposed purchase or contract for an amount above the
simplified acquisition threshold may not be divided into several
purchases or contracts for lesser amounts in order to use the
simplified acquisition procedures required by subsection (a).
``(d) In using simplified acquisition procedures, the head of an
executive agency shall promote competition to the maximum extent
practicable.''.
SEC. 4012. SMALL BUSINESS RESERVATION.
Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) is
amended to read as follows:
``(j)(1) Each contract for the purchase of goods and services that
has an anticipated value in excess of $2,500 but not in excess of the
simplified acquisition threshold and that is subject to simplified
acquisition procedures prescribed pursuant to section 29 of the Office
of Federal Procurement Policy Act shall be reserved exclusively for
small business concerns unless the contracting officer is unable to
obtain offers from two or more small business concerns that are
competitive with market prices and are competitive with regard to the
quality and delivery of the goods or services being purchased.
``(2) In carrying out paragraph (1), a contracting officer shall
consider a responsive offer timely received from an eligible small
business offeror.
``(3) Nothing in paragraph (1) shall be construed as precluding an
award of a contract with a value not in excess of the simplified
acquisition threshold under the authority of section 8(a) of this Act,
section 2323 of title 10, United States Code, or section 712 of the
Business Opportunity Development Reform Act of 1988 (Public Law 100-
656; 15 U.S.C. 644 note).''.
SEC. 4013. FAST PAYMENT UNDER SIMPLIFIED ACQUISITION PROCEDURES.
(a) Payment Procedures.--The simplified acquisition procedures
described in section 29(a) of the Office of Federal Procurement Policy
Act (as added by section 4011) shall provide for use of the payment
terms described in subsection (b), and for the disbursement of payment
through electronic fund transfer, whenever circumstances permit.
(b) Required Payment Terms.--The payment terms for a purchase made
pursuant to simplified acquisition procedures shall require payment, in
accordance with the provisions of chapter 39 of title 31, United States
Code, within 15 days after the date of the receipt of a proper invoice
for products delivered or services performed, if--
(1) in the case of a purchase of property, title to the
property will vest in the Government upon delivery of the
property to the Government or to a common carrier; and
(2) in the case of property or services for which payment
is due before the Government's acceptance of the property or
services, the vendor provides commercial or other appropriate
warranties assuring that the property or services purchased
conform to the requirements set forth in the Government's
purchase offer.
SEC. 4014. 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--
(1) in paragraph (1), by striking out ``the small purchase
threshold'' each place it appears and inserting in lieu thereof
``$25,000''; and
(2) in paragraph (3)(B), by inserting after ``(B)'' the
following: ``in the case of a contract or order expected to
exceed the simplified acquisition threshold,''.
(b) Content of Notice.--Subsection (b) of such section is amended--
(1) by striking out ``and'' at the end of paragraph (4);
(2) by striking out the period at the end of paragraph (5)
and inserting in lieu thereof a semicolon; and
(3) by adding at the end the following:
``(6) in the case of a contract in an amount estimated to
exceed $25,000 but not to exceed the simplified acquisition
threshold--
``(A) a description of the procedures to be used in
awarding the contract; and
``(B) a statement specifying the periods for
prospective offerors and the contracting officer to
take the necessary preaward and award actions.''.
(c) Notice Under the Small Business Act.--
(1) Continuation of existing notice thresholds.--Subsection
(e) of section 8 of the Small Business Act (15 U.S.C. 637) is
amended--
(A) in paragraph (1), by striking out ``the small
purchase threshold'' each place it appears and
inserting in lieu thereof ``$25,000''; and
(B) in paragraph (3)(B), by inserting after ``(B)''
the following: ``in the case of a contract or order
estimated to exceed the simplified acquisition
threshold,''.
(2) Content of notice.--Subsection (f) of such section is
amended--
(A) by striking out ``and'' at the end of paragraph
(4);
(B) by striking out the period at the end of
paragraph (5) and inserting in lieu thereof a
semicolon; and
(C) by adding at the end the following:
``(6) in the case of a contract in an amount estimated to
exceed the $25,000 but not to exceed the simplified acquisition
threshold--
``(A) a description of the procedures to be used in
awarding the contract; and
``(B) a statement specifying the periods for
prospective offerors and the contracting officer to
take the necessary preaward and award actions.''.
SEC. 4015. ELECTRONIC COMMERCE FOR FEDERAL GOVERNMENT PROCUREMENTS.
(a) Development and Implementation of System.--The Administrator
for Federal Procurement Policy, in consultation with the heads of
appropriate Federal Government agencies having applicable technical and
functional expertise, may take appropriate steps to develop and
implement a Federal Governmentwide architecture or design for
electronic commerce that provides interoperability among users.
(b) Required Capabilities.--The requirements analysis prepared to
implement the architecture or design of a system of electronic commerce
referred to in subsection (a) shall have the following capabilities:
(1) The maximum practicable capability for electronic
exchange of such procurement information as solicitations,
offers, contracts, purchase orders, invoices, payments, and
other contractual documents between the private sector and the
Federal Government.
(2) Capabilities that increase the access of businesses,
including small business concerns, socially and economically
disadvantaged small business concerns, and businesses owned
predominantly by women, to Federal Government procurement
opportunities.
(3) Easy access for potential Federal Government
contractors.
(4) Use of nationally and internationally recognized data
formats that broaden and ease electronic interchange of data.
(5) Use of Federal Government systems and networks and
industry systems and networks.
(c) Notice and Solicitation Regulations.--In connection with
implementation of the architecture or design referred to in subsection
(a), the Federal Acquisition Regulatory Council shall ensure that the
Federal Acquisition Regulation contains appropriate notice and
solicitation provisions applicable to acquisitions conducted through
such architecture or design. The provisions shall specify the required
form and content of notices of acquisitions and the minimum periods for
notifications and solicitations. Each minimum period specified for a
notification or solicitation shall afford potential offerors a
reasonable opportunity to respond to the notification or solicitation,
as the case may be.
(d) Limitation of Publication Requirement.--The requirement in
section 18(a) of the Office of Federal Procurement Policy Act (41
U.S.C. 416(a)) and section 8(e) of the Small Business Act (15 U.S.C.
637(e)) for publishing notice of a solicitation in the Commerce
Business Daily shall not apply to acquisitions of a Federal agency or a
component of a Federal agency that are made through electronic commerce
and have a value not in excess of the simplified acquisition threshold
if the Administrator for Federal Procurement Policy certifies that such
agency or component--
(1) has fully implemented the architecture or design
referred to in subsection (a); and
(2) has procedures in place--
(A) to provide notice to potential offerors in
accordance with the requirements of the Federal
Acquisition Regulation prescribed pursuant to
subsection (c); and
(B) to ensure that small business concerns are
afforded an opportunity to respond to a solicitation of
contract offers within the period specified in the
solicitation.
(e) Definition.--In this section, the term ``simplified acquisition
threshold'' has the meaning given that term is section 4(11) of the
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).
PART III--APPLICABILITY OF LAWS TO ACQUISITIONS NOT IN EXCESS OF
SIMPLIFIED ACQUISITION THRESHOLD
SEC. 4021. FUTURE ENACTED PROCUREMENT LAWS.
The Office of Federal Procurement Policy Act (41 U.S.C. 401 et
seq.), as amended by section 4011, is further amended by adding at the
end the following new section:
``applicability of certain laws to contracts not exceeding simplified
acquisition threshold
``Sec. 30. (a) In General.--The applicability of a provision of law
described in subsection (b) to contracts not in excess of the
simplified acquisition threshold may be waived on a class basis in the
Federal Acquisition Regulation. Such a waiver shall not apply to a
provision of law that expressly refers to this section and prohibits
the waiver of that provision of law.
``(b) Referenced Law.--A provision of law referred to in subsection
(a) is any provision of law enacted after the date of the enactment of
the Federal Acquisition Streamlining Act of 1994 that, as determined by
the Administrator for Federal Procurement Policy, sets forth policies,
procedures, requirements, or restrictions for the procurement of
property or services by the Federal Government.''.
SEC. 4022. ARMED SERVICES ACQUISITIONS.
(a) 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 not in excess of the simplified acquisition
threshold.''.
(b) 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 not in
excess of the simplified acquisition threshold (as defined in section
4(11) of the Office of Federal Procurement Policy Act (41 U.S.C.
403(11))).''.
(c) 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 not in excess of the simplified
acquisition threshold.''.
(d) 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 that does not exceed the simplified acquisition
threshold (as defined in section 4(11) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(11))).''.
(e) 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 (as defined in section 4(11) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(11))).''.
(f) Prohibition on Persons Convicted of Defense-Contract Related
Felonies.--Section 2408(a) of title 10, United States Code, is amended
by adding at the end the following new paragraph:
``(4) The prohibition in paragraph (1) does not apply with respect
to the following:
``(A) A contract referred to in subparagraph (A), (B), (C),
or (D) of such paragraph that is not in excess of the
simplified acquisition threshold (as defined in section 4(11)
of the Office of Federal Procurement Policy Act (41 U.S.C. 403
(11))).
``(B) A subcontract referred to in such subparagraph that
is under a contract described in subparagraph (A).''.
SEC. 4023. CIVILIAN AGENCY ACQUISITIONS.
(a) 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 that
is not in excess of the simplified acquisition threshold.''.
(b) 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 that is not in
excess of the simplified acquisition threshold.''.
(c) Authority To Examine Books and Records of Contractors.--Section
304B 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 (f) the following:
``(2) A contract that is not in excess of the simplified
acquisition threshold.''.
SEC. 4024. ACQUISITIONS GENERALLY.
(a) Limitation on Use of Funds To Influence Certain Federal
Actions.--Section 1352(e)(2)(B) of title 31, United States Code, is
amended by striking out ``$100,000'' and inserting in lieu thereof
``the simplified acquisition threshold (as defined in section 4(11) of
the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)))''.
(b) Requirement for Contract Clause Relating to Kickbacks.--Section
7 of the Anti-Kickback Act of 1986 (41 U.S.C. 57) is amended by adding
at the end the following new subsection:
``(d) Subsections (a) and (b) do not apply to a prime contract that
is not in excess of the simplified acquisition threshold (as defined in
section 4(11) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(11))).''.
(c) Miller Act.--
(1) In general.--
(A) Contracts not exceeding simplified acquisition
threshold.--The Act of August 24, 1935 (40 U.S.C. 270a
et seq.), commonly referred to as the ``Miller Act'',
is amended by adding at the end the following new
section:
``Sec. 5. This Act does not apply to a contract in an amount that
is not in excess of the simplified acquisition threshold (as defined in
section 4(11) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(11))).''.
(B) Conforming amendment.--Subsection (a) of the
first section of such Act is amended by striking out
``, exceeding $25,000 in amount,''.
(2) Alternative payment protections.--
(A) Protections to be specified in the far.--The
Federal Acquisition Regulation shall provide
alternatives to payment bonds as payment protections
for suppliers of labor and materials under contracts
referred to in subparagraph (C).
(B) Use of authorized protections.--The contracting
officer for a contract shall--
(i) select, from among the payment
protections provided for in the Federal
Acquisition Regulation pursuant to subparagraph
(A), one or more payment protections which the
offeror awarded the contract is to submit to
the Federal Government for the protection of
suppliers of labor and materials for such
contract; and
(ii) specify in the solicitation of offers
for such contract the payment protection or
protections so selected.
(C) Covered contracts.--
(i) Applicability.--The regulations
required under subparagraph (A) and the
requirements of subparagraph (B) apply with
respect to contracts referred to in subsection
(a) of the first section of the Miller Act that
are in excess of $25,000 but not in excess of
the simplified acquisition threshold (as
defined in section 4(11) of the Office of
Federal Procurement Policy Act (41 U.S.C.
403(11))).
(ii) Miller act reference.--The Miller Act
referred to in subparagraph (A) is the Act of
August 24, 1935 (40 U.S.C. 270a et seq.),
commonly referred to as the ``Miller Act''.
(d) Contract Work Hours and Safety Standards Act.--
(1) In general.--Section 103 of the Contract Work Hours and
Safety Standards Act (40 U.S.C. 329) is amended by adding at
the end the following new subsection:
``(c) This title does not apply to a contract in an amount that is
not in excess of the simplified acquisition threshold (as defined in
section 4(11) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(11))).''.
(2) Conforming amendment.--Section 107(a) of such Act (40
U.S.C. 333(a)) is amended by inserting after ``It shall be a
condition of each contract'' the following: ``(other than a
contract referred to in section 103(c))''.
(e) 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 4(11) of such Act (41 U.S.C. 403(11)))
by any Federal agency''.
(f) Certain Procurement Integrity Requirements.--
(1) Certification requirement.--Subsection (e)(7)(A) of
section 27 of the Office of Federal Procurement Policy Act (41
U.S.C. 423) is amended by striking out ``$100,000'' and
inserting in lieu thereof ``the simplified acquisition
threshold''.
(2) Contract clause requirement.--Subsection (g)(1) of
such section is amended by inserting after ``awarded by a
Federal agency'' the following: ``(other than a contract in an
amount that is not in excess of the simplified acquisition
threshold)''.
(g) Solid Waste Disposal Act.--Section 6002(a) of the Solid Waste
Disposal Act (42 U.S.C. 6962(a)) is amended by striking out all that
follows ``with respect to any'' and inserting in lieu thereof
``contract in excess of the simplified acquisition threshold (as
defined in section 4(11) of the Office of Federal Procurement Policy
Act (41 U.S.C. 403(11))).''.
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 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 redesignated by paragraph (3), by
striking out ``small purchase procedures'' and inserting in
lieu thereof ``the simplified procedures''.
(b) Solicitation Content Requirement.--Section 2305(a)(2) of title
10, United States Code, is amended by striking out ``small purchases)''
in the matter above subparagraph (A) and inserting in lieu thereof
``purchases not in excess of the simplified acquisition threshold)''.
(c) Cost Type Contracts.--Section 2306(e)(2)(A) of title 10, United
States Code, 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.--
(1) Property and services generally.--Section 303(g) of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253(g)) is amended--
(A) in paragraph (1), by striking out ``small
purchases of property and services'' and inserting in
lieu thereof ``purchases of property and services not
in excess of the simplified acquisition threshold'';
(B) by striking out paragraphs (2) and (5);
(C) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively;
(D) in paragraph (2), as so redesignated--
(i) by striking out ``small purchase
threshold'' and inserting in lieu thereof
``simplified acquisition threshold''; and
(ii) by striking out ``small purchase
procedures'' and inserting in lieu thereof
``simplified procedures''; and
(E) in paragraph (3), as redesignated by
subparagraph (C), by striking out ``small purchase
procedures'' and inserting in lieu thereof ``the
simplified procedures''.
(2) Leaseholds.--Section 210 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 490) is amended
by adding at the end the following new subsection:
``(k)(1) Regulations prescribed by the Administrator shall provide
special simplified procedures for acquisitions of leasehold interests
in real property at rental rates that do not exceed the simplified
acquisition threshold.
``(2) For purposes of paragraph (1), the rental rate or rates under
a multiyear lease do not exceed the simplified acquisition threshold if
the average annual amount of the rent payable for the period of the
lease does not exceed the simplified acquisition threshold.
``(3) In this subsection, the term `simplified acquisition
threshold' has the meaning given that term in section 4(11) of the
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).''.
(b) Solicitation Content Requirement.--Section 303A(b) of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C.
253a(b)) is amended by striking out ``small purchases)'' in the matter
above paragraph (1) and inserting in lieu thereof ``purchases not in
excess of the simplified acquisition threshold)''.
(c) Cost Type Contracts.--Section 304(b) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 254(b)), as amended
by section 1071, is further amended in the second 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 in
excess of the simplified acquisition threshold''.
SEC. 4074. SMALL BUSINESS ACT.
(a) Definition.--Section 3(m) of the Small Business Act (15 U.S.C.
632(m)) is amended by striking out ```small purchase threshold''' and
inserting in lieu thereof ```simplified acquisition threshold'''.
(b) Use of Simplified Acquisition Threshold Term.--Section
8(d)(2)(A) of the Small Business Act (15 U.S.C. 637(d)(2)(A)) is
amended by striking out ``small purchase threshold'' and inserting in
lieu thereof ``simplified acquisition threshold''.
PART V--REVISION OF REGULATIONS
SEC. 4081. REVISION REQUIRED.
(a) Federal Acquisition Regulation.--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 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. The Council shall 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. The
preceding sentence 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.--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 identify any such regulations, policies, or procedures
that are applicable to acquisitions in excess of a specified amount
that is less than $100,000. The agency head shall amend 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. The preceding sentence does not
apply in the case of a regulation, policy, or procedure for which such
an amendment would not be in the national interest, as determined by
the agency head.
(c) Completion of Actions.--All actions under this section shall be
completed not later than 180 days after the date of the enactment of
this Act.
(d) Definitions.--In this section:
(1) The term ``simplified acquisition threshold'' has the
meaning given such term in section 4(11) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(11)), as amended
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. ARMED SERVICES ACQUISITIONS.
(a) Inapplicability of Certain Labor Laws to Construction of Naval
Vessels.--Section 7299 of title 10, United States Code, is amended to
read as follows: ``No contract for the construction, alteration,
furnishing, or equipping of a naval vessel shall be subject to the Act
of March 3, 1931 (40 U.S.C. 276a(a)), commonly referred to as the
`Davis-Bacon Act', or to the Service Contract Act of 1965 (41 U.S.C.
351 et seq.), unless the President determines that such requirement is
in the interest of national defense.''.
(b) Clerical Amendments.--
(1) Section heading.--The heading of such section is
amended to read as follows:
``Sec. 7299. Contracts: applicability of certain labor laws''.
(2) Table of sections.--The item relating to such section
in the table of sections at the beginning of chapter 633 of
title 10, United States Code, is amended to read as follows:
``7299. Contracts: applicability of certain labor laws.''.
SEC. 4102. ACQUISITIONS GENERALLY.
(a) Inapplicability of Certain Labor Laws to Construction of
Vessels.--No contract for the construction, alteration, furnishing, or
equipping of a vessel shall be subject to the Act of March 3, 1931 (40
U.S.C. 276a(a)), commonly referred to as the `Davis-Bacon Act', or to
the Service Contract Act of 1965 (41 U.S.C. 351 et seq.), unless the
President determines that such requirement is in the interest of the
United States.
(b) Repeal of Executed Reporting Requirement.--Section 306 of the
Trade Agreements Act of 1979 (19 U.S.C. 2516) is repealed.
(c) Walsh-Healey Act.--
(1) Repeal other than for certain definitional purposes.--
The Act of June 30, 1936 (41 U.S.C. 35 et seq.), commonly
referred to as the ``Walsh-Healey Act'', is amended to read as
follows:
``Section 1. (a) The Secretary of Labor may prescribe in
regulations the standards for determining whether a contractor is a
manufacturer of or a regular dealer in materials, supplies, articles,
or equipment to be manufactured or used in the performance of a
contract entered into by any executive department, independent
establishment, or other agency or instrumentality of the United States,
or by the District of Columbia, or by any corporation all the stock of
which is beneficially owned by the United States, for the manufacture
or furnishing of materials, supplies, articles, and equipment.
``(b) Any interested person shall have the right of judicial review
of any legal question regarding the interpretation of the terms
`regular dealer' and `manufacturer', as defined pursuant to subsection
(a).''
(2) Conforming amendment.--Section 2304(h) of title 10,
United States Code, is amended to read as follows:
``(h) For the purposes of the Act entitled `An Act relating to the
rate of wages for laborers and mechanics employed on public buildings
of the United States and the District of Columbia by contractors and
subcontractors, and for other purposes', approved March 3, 1931
(commonly referred to as the `Davis-Bacon Act') (40 U.S.C. 276a et
seq.), purchases or contracts awarded after using procedures other than
sealed-bid procedures shall be treated as if they were made with
sealed-bid procedures.''.
(d) Repeal of Redundant Requirement Regarding Applicability of the
Davis-Bacon Act and the Walsh-Healey Act.--Section 308 of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 258) is
repealed.
SEC. 4103. ACQUISITIONS FROM SMALL BUSINESSES.
(a) Set-Aside Priority.--Section 15 of the Small Business Act (15
U.S.C. 644) is amended by striking out subsections (e) and (f).
(b) Certificate of Competence.--Section 804 of Public Law 103-484
(106 Stat. 2447; 10 U.S.C. 2305 note) is repealed.
SEC. 4104. CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS.
(a) Procurement Procedures Authorized.--Section 8 of the Small
Business Act (15 U.S.C. 637) is amended by inserting after subsection
(b) the following new subsection:
``(c)(1) To facilitate the attainment of a goal for the
participation of small business concerns owned and controlled by
socially and economically disadvantaged individuals that is established
for a Federal agency pursuant to section 15(g)(1), the head of the
agency may enter into contracts using--
``(A) less than full and open competition by restricting
the competition for such awards to small business concerns
owned and controlled by socially and economically disadvantaged
individuals described in subsection (d)(3)(C) of this section;
and
``(B) a price evaluation preference not in excess of 10
percent when evaluating an offer received from such a small
business concern as the result of an unrestricted solicitation.
``(2) Paragraph (1) does not apply to the Department of Defense.''.
(b) Implementation Through the Federal Acquisition Regulation.--
(1) In general.--The Federal Acquisition Regulation shall
be amended to provide for uniform implementation of the
authority provided in section 8(c) of the Small Business Act,
as added by subsection (a).
(2) Matters to be addressed.--The provisions of the Federal
Acquisition Regulation prescribed pursuant to paragraph (1)
shall include--
(A) conditions for the use of advance payments;
(B) provisions for contract payment terms that
provide for--
(i) accelerated payment for work performed
during the period for contract performance; and
(ii) full payment for work performed;
(C) guidance on how contracting officers may use,
in solicitations for various classes of products or
services, a price evaluation preference pursuant to
section 8(c)(1)(B) of the Small Business Act, as added
by subsection (a), to provide a reasonable advantage to
small business concerns owned and controlled by
socially and economically disadvantaged individuals
without effectively eliminating any participation of
other small business concerns; and
(D)(i) procedures for a person to request the head
of Federal agency to determine whether the use of
competitions restricted to small business concerns
owned and controlled by socially and economically
disadvantaged individuals at a contracting activity of
such agency has caused a particular industry category
to bear a disproportionate share of the contracts
awarded to attain the goal established for that
contracting activity; and
(ii) guidance for limiting the use of such
restricted competitions in the case of any contracting
activity and class of contracts determined in
accordance with such procedures to have caused a
particular industry category to bear a disproportionate
share of the contracts awarded to attain the goal
established for that contracting activity.
(c) Termination.--Section 8(c) of the Small Business Act, as added
by subsection (a), shall cease to be effective at the end of September
30, 1999.
Subtitle C--Miscellaneous Acquisition Laws
SEC. 4151. PROHIBITION ON USE OF FUNDS FOR DOCUMENTING ECONOMIC OR
EMPLOYMENT IMPACT OF CERTAIN ACQUISITION PROGRAMS.
(a) Revision and Codification.--
(1) In general.--Subchapter I of chapter 134 of title 10,
United States Code, is amended by adding at the end the
following new section:
``Sec. 2247. Prohibition on use of funds for documenting economic or
employment impact of certain acquisition programs
``No funds appropriated by the Congress may be obligated or
expended to assist any contractor of the Department of Defense in
preparing any material, report, lists, or analysis with respect to the
actual or projected economic or employment impact in a particular State
or congressional district of an acquisition program for which all
research, development, testing, and evaluation has not been
completed.''.
(2) Clerical amendment.--The table of sections at the
beginning of such subchapter is amended by adding at the end
the following new item:
``2247. Prohibition on use of funds for documenting economic or
employment impact of certain acquisition
programs.''.
(b) Repeal of Superseded Law.--Section 9048 of Public Law 102-396
(106 Stat. 1913) is repealed.
SEC. 4152. RESTRICTION ON USE OF NONCOMPETITIVE PROCEDURES FOR
PROCUREMENT FROM A PARTICULAR SOURCE.
(a) Armed Services Acquisitions.--Section 2304 of title 10, United
States Code, as amended by section 1005(b), is further amended--
(1) in subsection (c)(5), by inserting ``subject to
subsection (j),'' after ``(5)''; and
(2) by adding at the end the following new subsection:
``(j)(1) It is the policy of Congress that no legislation should be
enacted that requires a procurement to be made from a specified non-
Federal Government source.
``(2) A provision of law may not be construed as requiring a
procurement 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).''.
(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 to be made from a specified non-
Federal Government source.
``(2) A provision of law may not be construed as requiring a
procurement 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).''.
TITLE V--ACQUISITION MANAGEMENT
Subtitle A--Armed Services Acquisitions
SEC. 5001. PERFORMANCE BASED MANAGEMENT.
(a) Policy and Goals for Performance Based Management of
Programs.--
(1) In general.--Chapter 131 of title 10, United States
Code, is amended by adding at the end the following new
section:
``Sec. 2219. Performance based management: acquisition programs
``(a) Congressional Policy.--It is the policy of Congress that--
``(1) the Department of Defense should achieve, on average,
90 percent of the cost and schedule goals established for the
research and development programs and acquisition programs of
the Department of Defense without reducing the performance or
capabilities of the items being acquired; and
``(2) the average period necessary for converting an
emerging technology into initial operational capability for the
Department of Defense should not exceed 8 years.
``(b) Establishment of Goals.--(1) The Secretary of Defense shall
approve or define the cost, performance, and schedule goals for major
defense acquisition programs of the Department of Defense.
``(2) The Comptroller of the Department of Defense shall evaluate
the cost goals proposed for each major defense acquisition program of
the Department.
``(c) Identification of Noncompliant Programs.--Whenever it is
necessary to do so in order to implement the policy set out in
subsection (a), the Secretary of Defense shall--
``(1) identify and consider whether there is a continuing
need for programs that are significantly behind schedule, over
budget, or not in compliance with performance or capability
requirements taking into consideration--
``(A) the needs of the Department known as of the
time of consideration;
``(B) the state of the technology or technologies
relevant to the programs and to the needs of the
Department;
``(C) the estimated costs and projected schedules
necessary for the completion of such programs; and
``(D) other pertinent information; and
``(2) identify existing and potential research and
development programs and acquisition programs that are suitable
alternatives for programs considered pursuant to paragraph (1).
``(d) Annual Reporting Requirement.--The Secretary of Defense shall
include in the annual report submitted to Congress pursuant to section
113(c) of this title an assessment of the progress made in implementing
the policy stated in subsection (a). The Secretary shall use data from
existing management systems in making the assessment.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:
``2219. Performance based management: acquisition programs.''.
(b) Enhanced System of Performance Incentives.--Within one year
after the date of the enactment of this Act, the Secretary of Defense
shall review the incentives and personnel actions available to the
Secretary for encouraging excellence in the defense acquisition
workforce and provide an enhanced system of incentives for the
encouragement of excellence in such workforce. The enhanced system of
incentives shall, to the maximum extent consistent with applicable
law--
(1) relate pay to performance (including the extent to
which the performance of personnel in such workforce
contributes to achieving the cost goals, schedule goals, and
performance goals established for acquisition programs of the
department pursuant to section 2219(b) of title 10, as added by
subsection (a)); and
(2) provide for consideration, in personnel evaluations and
promotion decisions, of the extent to which the performance of
personnel in such workforce contributes to achieving the cost
goals, schedule goals, and performance goals established for
acquisition programs of the department pursuant to section
2219(b) of title 10, United States Code, as added by subsection
(a).
(c) Recommended Legislation.--Not later than one year after the
date of the enactment of this Act, the Secretary of Defense shall
submit to Congress any recommended legislation that the Secretary
considers necessary to carry out section 2219 of title 10, United
States Code, as added by subsection (a), and otherwise to facilitate
and enhance management of Department of Defense acquisition programs
and the defense acquisition workforce on the basis of performance.
SEC. 5002. RESULTS ORIENTED ACQUISITION PROGRAM CYCLE.
The Secretary of Defense shall define in regulations a simplified
acquisition program cycle that is results-oriented. The Secretary shall
consider including in the regulations provisions for the following:
(1) Program phases as follows:
(A) An integrated decision team meeting which--
(i) may be requested by a potential user of
the system or component to be acquired, the
head of a laboratory, or a program office on
such bases as the emergence of a new military
requirement, cost savings opportunity, or new
technology opportunity;
(ii) is conducted by an acquisition program
executive officer; and
(iii) is usually completed within 1 to 3
months.
(B) A prototype development and testing phase
which--
(i) includes operational tests and concerns
relating to manufacturing operations and life
cycle support;
(ii) is usually completed within 6 to 36
months; and
(iii) produces sufficient numbers of
prototypes to assess operational utility.
(C) Product integration, development, and testing
which--
(i) includes full-scale development,
operational testing, and integration of
components; and
(ii) is usually completed within 1 to 5
years.
(D) Production, integration into existing systems,
or production and integration into existing systems.
(2) An acquisition program approval process for major
program decisions which consists of the following:
(A) One major decision point--
(i) which occurs for an acquisition program
before the program proceeds into product
integration and development; and
(ii) at which the Under Secretary of
Defense for Acquisition and Technology, in
consultation with the Vice Chairman of the
Joint Chiefs of Staff reviews the program,
determines whether the program should continue
to be carried out beyond product integration
and development, and decides whether to commit
to further development, to require further
prototyping, or to terminate the program.
(B) Consideration of the potential benefits,
affordability, needs, and risks of an acquisition
program in the review of the acquisition program.
SEC. 5003. DEFENSE ACQUISITION PILOT PROGRAM DESIGNATIONS.
(a) Programs and Waivers.--The National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103-160) is amended by inserting the
following new section at the end of subtitle D of title VIII:
``SEC. 840. DEFENSE ACQUISITION PILOT PROGRAM DESIGNATIONS.
``(a) Eligible Programs.--The Secretary of Defense is authorized to
designate the following defense acquisition programs for participation
in the defense acquisition pilot program authorized by section 809 of
the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C.
2430 note):
``(1) Defense Personnel Support Center medical, clothing
and textile, and subsistence programs with respect to the
following:
``(A) All contracts for processed fruits and
vegetables and frozen seafood items for both depot
stock and direct vendor delivery.
``(B) All contracts in the subsistence prime vendor
program for grocery items.
``(C) All contracts in the Mail Order Pharmacy
Program, the prime vendor programs for pharmaceuticals
and for medical surgical items for delivery to military
hospitals.
``(D) All contracts in the medical electronic
commerce program for acquisition for depot stock and
direct vendor delivery.
``(E) All contracts for the following items: dress
coats (small lots), dress coats, duffel bags, Navy work
clothing, general purpose tents, suitcases, gloves for
electrical workers, boot flyers, socks, drawers,
undershirts, and items offered under the Broad Agency
Announcements for Clothing and Textiles Advanced
Business Practices Demonstration Program.
``(2) The Fire Support Combined Arms Tactical Trainer
program with respect to all contracts directly related to the
procurement of a training system (including related hardware,
software, and subsystems) to perform collective training of
field artillery gunnery team components with development of
software as required to generate the training exercises and
component interfaces.
``(3) The Joint Direct Attack Munition program (JDAM I)
with respect to all contracts directly related to the
development and procurement of a strap-on guidance kit, using
an inertially guided, Global Positioning System updated
guidance kit for inventory 1,000 and 2,000 pound bombs.
``(4) The Joint Primary Aircraft Training System (JPATS)
with respect to all contracts directly related to the
acquisition of a new primary trainer aircraft to fulfill Air
Force and Navy joint undergraduate aviation training
requirements, and an associated ground-based training system
consisting of air crew training devices (simulators),
courseware, a Training Management System, and contractor
support for the life of the system.
``(5) The Commercial Derivatives Aircraft program with
respect to all contracts directly related to the acquisition or
upgrading of civil-derivative aircraft for use in (A) foreign
military sales of Airborne Warning and Control Systems to
foreign governments with modifications of a type customarily
provided to commercial customers, or (B) future Air Force
airlift and tanker requirements.
``(6) The Commercial Derivative Engine program with respect
to all contracts directly related to the acquisition of (A)
commercially derived engines (including spare engines),
logistics support equipment, technical orders, management data,
and initial spare parts for use in the C-17A production line,
and (B) commercially derived engines to support the purchase of
commercial-derivative aircraft to meet future Air Force airlift
and tanker requirements, including engine replacement and
upgrades.
``(b) Waiver Authority.--Subject to section 809(c) of the National
Defense Authorization Act for Fiscal Year 1991, the Secretary of
Defense is authorized--
``(1) to apply any amendment or repeal of a provision of
law made in the Federal Acquisition Streamlining Act of 1994 to
the programs described in subsection (a) before the effective
date of such amendment or repeal; and
``(2) to apply to a procurement of noncommercial items
under such programs--
``(A) any authority provided in such Act (or in an
amendment made by a provision of such Act) to waive a
provision of law in the case of commercial items, and
``(B) any exception applicable under such Act (or
an amendment made by a provision of such Act) in the
case of commercial items,
before the effective date of such provision (or amendment) to
the extent that the Secretary determines necessary to test the
application of such waiver or exception to procurements of
noncommercial items.
``(c) Pilot Program Implementation.--In exercising the authority
provided in section 809 of the National Defense Authorization Act for
1991, and in accordance with sections 833 through 839 of this Act, the
Secretary of Defense, shall take the following actions:
``(1) Mission-oriented program management.--For one or more
of the defense acquisition programs designated for
participation in the defense acquisition pilot program,
prescribe and implement procedures which--
``(A) provide for interaction between the program
manager and the commander of the operational command
responsible for the requirement for the equipment
acquired;
``(B) include provisions for a determination by the
commander that items proposed for procurement fulfill
the need defined in approved requirements documents;
and
``(C) may include a role for the operational
commander in decision making for program milestone
decisions and performance of acceptance testing of
items acquired.
``(2) Savings objectives.--Not later than 45 days after the
date of enactment of the Federal Acquisition Streamlining Act
of 1994, identify for each defense acquisition program
participating in the pilot program quantitative measures and
goals for reducing acquisition management costs.
``(3) Program phases.--For each defense acquisition program
participating in the pilot program, incorporate in an approved
acquisition strategy a program review process that provides
senior acquisition officials with reports that--
``(A) contain essential information on program
results at quarterly intervals;
``(B) reduce data requirements from the current
major program review reporting requirements; and
``(C) include data on program costs estimates,
actual expenditures, performance estimates, performance
data from tests, and, consistent with existing
statutes, the minimum necessary other data items
required to ensure the appropriate expenditure of funds
appropriated for that program.
``(4) Program work force policies.--With regard to the
review of incentives and personnel actions required under
section 836 of this Act--
``(A) not later than 60 days after the date of the
enactment of the Federal Acquisition Streamlining Act
of 1994--
``(i) complete the review; and
``(ii) on the basis of the review, define
one or more systems that relate incentives,
including pay, to achievement of budgets,
schedules, and performance requirements;
``(B) not later than 120 days after the date of the
enactment of the Federal Acquisition Streamlining Act
of 1994--
``(i) apply such a system of incentives to
not less than one defense acquisition program
participating in the pilot program; and
``(ii) provide for an assessment of the
effectiveness of that system; and
``(C) incorporate the results of actions taken
pursuant to this paragraph into the development of
regulations for the implementation of section 5001(b)
of the Federal Acquisition Streamlining Act of 1994.
``(5) Efficient contracting process.--Take any additional
actions that the Secretary considers necessary to waive
regulations, not required by statute, that affect the
efficiency of the contracting process, including, in the
Secretary's discretion, defining alternative techniques to
reduce reliance on military specifications and standards in
contracts for the defense acquisition programs participating in
the pilot program.
``(6) Contract administration: performance based contract
management.--For at least one participating defense acquisition
program for which a determination is made to make payments for
work in progress under the authority of section 2307 of title
10, United States Code, define payment milestones on the basis
of quantitative measures of results.
``(7) Contractor performance assessment.--Collect and
evaluate performance information on each contract entered into
for a defense acquisition program participating in the pilot
program, including information on cost, schedule, and technical
performance for each contractor supporting a participating
program.
``(d) Applicability.--(1) Subsection (b) applies with respect to--
``(A) a contract that is awarded or modified during the
period described in paragraph (2); and
``(B) a contract that is awarded before the beginning of
such period and is to be performed (or may be performed), in
whole or in part, during such period.
``(2) The period referred to in paragraph (1) is the period that
begins 45 days after the date of the enactment of the Federal
Acquisition Streamlining Act of 1994 and ends on September 30, 1998.''.
(b) Rule of Construction.--Nothing in section 840 of the National
Defense Authorization Act for Fiscal Year 1994, as added by subsection
(a), shall be construed as authorizing the appropriation or obligation
of funds for the programs designated for participation in the defense
acquisition pilot program under the authority of subsection (a) of such
section 840.
Subtitle B--Civilian Agency Acquisitions
SEC. 5051. PERFORMANCE BASED MANAGEMENT.
(a) Policy and Goals for Performance Based Management of
Programs.--
(1) In general.--Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 301 et seq.), as
amended by sections 1552 and 1553, is further amended by adding
at the end the following new section:
``performance based management: acquisition programs
``Sec. 311. (a) Congressional Policy.--It is the policy of Congress
that the head of each executive agency should achieve, on average, 90
percent of the cost and schedule goals established for the research and
development programs and acquisition programs of the agency without
reducing the performance or capabilities of the items being acquired.
``(b) Establishment of Goals.--(1) The head of each executive
agency shall approve or define the cost, performance, and schedule
goals for major acquisition programs of the agency.
``(2) The chief financial officer of an executive agency shall
evaluate the cost goals proposed for each major defense acquisition
program of the agency.
``(c) Identification of Noncompliant Programs.--Whenever it is
necessary to do so in order to implement the policy set out in
subsection (a), the head of an executive agency shall--
``(1) identify and consider whether there is a continuing
need for programs that are significantly behind schedule, over
budget, or not in compliance with performance or capability
requirements taking into consideration--
``(A) the needs of the agency known as of the time
of consideration;
``(B) the state of the technology or technologies
relevant to the programs and to the needs of the
agency;
``(C) the estimated costs and projected schedules
necessary for the completion of such programs; and
``(D) other pertinent information; and
``(2) identify existing and potential research and
development programs and acquisition programs that are suitable
alternatives for programs considered pursuant to paragraph
(1).''.
(2) Clerical amendment.--The table of contents in the first
section of such Act, as amended by sections 1552 and 1553, is
further amended by inserting after the item relating to section
310 the following new item:
``Sec. 311. Performance based management: acquisition programs.''.
(b) Annual Reporting Requirement.--Section 6 of the Office of
Federal Procurement Policy Act (41 U.S.C. 405), as amended by section
1091, is further amended by adding at the end the following new
subsection:
``(k) The Administrator shall submit to Congress, on an annual
basis, an assessment of the progress made in executive agencies in
implementing the policy stated in section 311(a) of the Federal
Property and Administrative Services Act of 1949. The Administrator
shall use data from existing management systems in making the
assessment.''.
(c) Enhanced System of Performance Incentives.--Within one year
after the date of the enactment of this Act, the Administrator for
Federal Procurement Policy, in consultation with appropriate officials
in other departments and agencies of the Federal Government, shall, to
the maximum extent consistent with applicable law--
(1) establish policies and procedures for the heads of such
departments and agencies to designate acquisition positions and
manage employees (including the accession, education, training
and career development of employees) in the designated
acquisition positions;
(2) extend to the acquisition workforce of the entire
executive branch the acquisition workforce policies contained
in chapter 87 of title 10, United States Code, relating to the
acquisition workforce of the Department of Defense; and
(3) review the incentives and personnel actions available
to the heads of department and agencies of the Federal
Government for encouraging excellence in the acquisition
workforce of the Federal Government and provide an enhanced
system of incentives for the encouragement of excellence in
such workforce which--
(A) relates pay to performance (including the
extent to which the performance of personnel in such
workforce contributes to achieving the cost goals,
schedule goals, and performance goals established for
acquisition programs pursuant to section 311(b) of the
Federal Property and Administrative Services Act of
1949, as added by subsection (a)); and
(B) provides for consideration, in personnel
evaluations and promotion decisions, of the extent to
which the performance of personnel in such workforce
contributes to achieving such cost goals, schedule
goals, and performance goals.
(d) Recommended Legislation.--Not later than one year after the
date of the enactment of this Act, the Administrator for Federal
Procurement Policy shall submit to Congress any recommended legislation
that the Secretary considers necessary to carry out section 311 of the
Federal Property and Administrative Services Act of 1949, as added by
subsection (a), and otherwise to facilitate and enhance management of
Federal Government acquisition programs and the acquisition workforce
of the Federal Government on the basis of performance.
SEC. 5052. RESULTS-ORIENTED ACQUISITION PROCESS.
(a) Development of Process Required.--The Administrator for Federal
Procurement Policy, in consultation with the heads of appropriate
Federal agencies, shall develop a results-oriented acquisition process
for implementation by agencies in acquisitions of property and services
by the Federal agencies. The process shall include the identification
of quantitative measures and standards for determining the extent to
which an acquisition of noncommercial items by a Federal agency
satisfies the needs for which the items are being acquired.
(b) Inapplicability of Process to Department of Defense.--The
process developed pursuant to subsection (a) may not be applied to the
Department of Defense.
Subtitle C--Miscellaneous
SEC. 5091. CONTRACTOR EXCEPTIONAL PERFORMANCE AWARDS.
The Office of Federal Procurement Policy Act, as amended by section
4021, is further amended by adding at the end the following:
``contractor exceptional performance awards
``Sec. 31. (a) Establishment.--There is hereby established an
executive branch program to recognize and promote exceptional contract
performance by Federal Government contractors.
``(b) Selection.--(1) The Administrator shall ensure the
establishment of criteria for selection of contractors to receive
exceptional performance awards under the program.
``(2) The head of an executive agency may select one or more agency
contractors to receive an exceptional performance award under the
program.
``(c) Award Ceremony.--The Vice President, or the head of the
executive agency selecting a contractor for an exceptional performance
award, shall present the award to the contractor with such ceremony as
the Vice President or head of the agency, as the case may be, considers
appropriate.''.
SEC. 5092. 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.''.
TITLE VI--STANDARDS OF CONDUCT
Subtitle A--Ethics Provisions
SEC. 6001. AMENDMENTS TO OFFICE OF FEDERAL PROCUREMENT POLICY ACT.
(a) Recusal.--Subsection (c) of section 27 of the Office of Federal
Procurement Policy Act (41 U.S.C. 423) is amended--
(1) in paragraph (1)--
(A) in the matter above subparagraph (A), by
inserting ``only'' after ``subsection (b)(1)''; and
(B) in subparagraph (A), by inserting ``(including
the modification or extension of a contract)'' after
``any procurement'';
(2) by striking out paragraphs (2) and (3) and inserting in
lieu thereof:
``(2) Whenever the head of a procuring activity approves a recusal
under paragraph (1), a copy of the recusal request and the approval of
the request shall be retained by such official for a period (not less
than five years) specified in regulations prescribed in accordance with
subsection (o).
``(3)(A) Except as provided in subparagraph (B), all recusal
requests and approvals of recusal requests pursuant to this subsection
shall be made available to the public on request.
``(B) Any part of a recusal request or an approval of a recusal
request that is exempt from the disclosure requirements of section 552
of title 5, United States Code, under subsection (b)(1) of such section
may be withheld from disclosure to the public otherwise required under
subparagraph (A).''; and
(3) in paragraph (4), by striking out ``competing
contractor'' and inserting in lieu thereof ``person''.
(b) Applicability of Certification Requirement.--Subsection
(e)(7)(A) of such section is amended by adding at the end the
following: ``However, paragraph (1)(B) does not apply with respect to a
contract for less than $500,000.''.
(c) Restrictions Resulting From Procurement Activities of
Procurement Officials.--Subsection (f) of such section is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by striking out paragraphs (1) and (2) and inserting in
lieu thereof the following:
``(1) No individual who, in the year prior to separation from
service as an officer or employee of the Government or an officer of
the uniformed services in a covered position, participated personally
and substantially in acquisition functions related to a contract,
subcontract, or claim of $500,000 or more and--
``(A) engaged in repeated direct contact with the
contractor or subcontractor on matters relating to such
contract, subcontract, or claim; or
``(B) exercised significant ongoing decisionmaking
responsibility with respect to the contractor or subcontractor
on matters relating to such contract, subcontract, or claim,
shall knowingly accept or continue employment with such contractor or
subcontractor for a period of 1 year following the individual's
separation from service, except that such individual may accept or
continue employment with any division or affiliate of such contractor
or subcontractor that does not produce the same or similar products as
the entity involved in the negotiation or performance of the contract
or subcontract or the adjustment of the claim.
``(2) No contractor or subcontractor, or any officer, employee,
agent, or consultant of such contractor or subcontractor shall
knowingly offer, provide, or continue any employment for another
person, if such contractor, subcontractor, officer, employee, agent, or
consultant knows or should know that the acceptance of such employment
is or would be in violation of paragraph (1).
``(3) The head of each Federal agency shall designate in writing as
a `covered position' under this section each of the following positions
in that agency:
``(A) The position of source selection authority, member of
a source selection evaluation board, or chief of a financial or
technical evaluation team, or any other position, if the
officer or employee in that position is likely personally to
exercise substantial responsibility for ongoing discretionary
functions in the evaluation of proposals or the selection of a
source for a contract in excess of $500,000.
``(B) The position of procuring contracting officer, or any
other position, if the officer or employee in that position is
likely personally to exercise substantial responsibility for
ongoing discretionary functions in the negotiation of a
contract in excess of $500,000 or the negotiation or settlement
of a claim in excess of $500,000.
``(C) The position of program executive officer, program
manager, or deputy program manager, or any other position, if
the officer or employee in that position is likely personally
to exercise similar substantial responsibility for ongoing
discretionary functions in the management or administration of
a contract in excess of $500,000.
``(D) The position of administrative contracting officer,
the position of an officer or employee assigned on a permanent
basis to a Government Plant Representative's Office, the
position of auditor, a quality assurance position, or any other
position, if the officer or employee in that position is likely
personally to exercise substantial responsibility for ongoing
discretionary functions in the on-site oversight of a
contractor's operations with respect to a contract in excess of
$500,000.
``(E) A position in which the incumbent is likely
personally to exercise substantial responsibility for ongoing
discretionary functions in operational or developmental testing
activities involving repeated direct contact with a contractor
regarding a contract in excess of $500,000.''.
(d) Disclosure of Proprietary or Source Selection Information to
Unauthorized Persons.--Subsection (l) of such section is amended--
(1) by inserting ``who are likely to be involved in
contracts, modifications, or extensions in excess of $25,000''
in the first sentence after ``its procurement officials''; and
(2) by striking out ``(e)'' each place it appears and
inserting in each such place ``(f)''.
(e) Rules of Construction.--Subsection (n) of such section is
amended to read as follows:
``(n) Rules of Construction.--Nothing in this section shall be
construed to--
``(1) authorize the withholding of any information from the
Congress, any committee or subcommittee thereof, a Federal
agency, any board of contract appeals of a Federal agency, the
Comptroller General, or an inspector general of a Federal
agency;
``(2) restrict the disclosure of information to, or receipt
of information by, any person or class of persons authorized,
in accordance with applicable agency regulations or procedures,
to receive that information;
``(3) restrict a contractor from disclosing its own
proprietary information or the recipient of information so
disclosed by a contractor from receiving such information; or
``(4) restrict the disclosure or receipt of information
relating to a Federal agency procurement that has been canceled
by the agency and that the contracting officer concerned
determines in writing is not likely to be resumed.''.
(f) Term To Be Defined in Regulations.--Subsection (o)(2)(A) of
such section is amended--
(1) by inserting ``money, gratuity, or other'' before
``thing of value'''; and
(2) by inserting before the semicolon ``and such other
exceptions as may be adopted on a Governmentwide basis under
section 7353 of title 5, United States Code''.
(g) Terms Defined in Law.--Subsection (p) of such section is
amended--
(1) in paragraph (1) by striking out ``clauses (i)-(viii)''
and inserting in lieu thereof ``clauses (i) through (vii)'';
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) by striking out clause (i);
(ii) by redesignating clauses (ii), (iii),
(iv), (v), (vi), (vii), and (viii) as clauses
(i), (ii), (iii), (iv), (v), (vi), and (vii),
respectively; and
(iii) in clause (i) (as redesignated by
subclause (II) of this clause), by striking out
``review and approval of a specification'' and
inserting in lieu thereof ``approval or
issuance of a specification, acquisition plan,
procurement request, or requisition''; and
(B) in subparagraph (B), by striking out all after
``includes'' and inserting in lieu thereof the
following: ``any individual acting on behalf of, or
providing advice to, the agency with respect to any
phase of the agency procurement concerned, regardless
of whether such individual is a consultant, expert, or
adviser, or an officer or employee of a contractor or
subcontractor (other than a competing contractor).'';
and
(3) in paragraph (6)(A), by inserting ``nonpublic'' before
``information''.
SEC. 6002. AMENDMENTS TO TITLE 18, UNITED STATES CODE.
Section 208(a) of title 18, United States Code, is amended--
(1) by inserting ``(1)'' before ``Except as permitted'';
and
(2) by adding at the end the following new paragraph:
``(2) Whoever knowingly aids, abets, counsels, commands, induces,
or procures conduct prohibited by this section shall be subject to the
penalties set forth in section 216 of this title.''.
SEC. 6003. REPEAL OF SUPERSEDED AND OBSOLETE LAWS.
(a) Repeal.--The following provisions of law are repealed:
(1) Sections 2207, 2397, 2397a, 2397b, and 2397c of title
10, United States Code.
(2) Section 281 of title 18, United States Code.
(3) Section 801 of title 37, United States Code.
(4) Part A of title VI of the Department of Energy
Organization Act (42 U.S.C. 7211 through 7218).
(b) Clerical Amendments.--
(1) Title 10.--Part IV of subtitle A of title 10, United
States Code, is amended--
(A) in the table of sections at the beginning of
chapter 131, by striking out the item relating to
section 2207; and
(B) in the table of sections for chapter 141, by
striking out the items relating to sections 2397,
2397a, 2397b, and 2397c.
(2) Title 18.--The table of sections for chapter 15 of
title 18, United States Code, is amended by striking out the
item relating to section 281.
(3) Title 37.--The table of sections for chapter 15 of
title 37, United States Code, is amended by striking out the
item relating to section 801.
(4) Department of energy organization act.--The table of
contents for the Department of Energy Organization Act is
amended by striking out the matter relating to part A of title
VI.
SEC. 6004. IMPLEMENTATION.
(a) Regulations.--Not later than 180 days after the date of the
enactment of this Act, regulations implementing the amendments made by
section 6001 to section 27 of the Office of Federal Procurement Policy
Act (41 U.S.C. 423), including definitions of the terms used in
subsection (f) of such section, shall be issued in accordance with
sections 6 and 25 of such Act (41 U.S.C. 405 and 521) after
coordination with the Director of the Office of Government Ethics.
(b) Savings Provisions.--
(1) Contractor certifications.--No officer, employee,
agent, representative, or consultant of a contractor who has
signed a certification under section 27(e)(1)(B) of the Office
of Federal Procurement Policy Act (41 U.S.C. 423(e)(1)(B))
before the effective date of this Act shall be required to sign
a new certification as a result of the enactment of this Act.
(2) Federal procurement official certifications.--No
procurement official of a Federal agency who has signed a
certification under section 27(l) of the Office of Federal
Procurement Policy Act (41 U.S.C. 423(l)) before the date of
enactment of this Act shall be required to sign a new
certification as a result of the enactment of this Act.
(c) Inspector General Reports.--Not later than May 31 of each of
the years 1995 through 1998, the Inspector General of each Federal
agency (or, in the case of a Federal agency that does not have an
Inspector General, the head of such agency) shall submit to Congress a
report on the compliance by the agency during the preceding year with
the requirement for the head of the agency to designate covered
procurement positions under section 27(f)(3) of the Office of Federal
Procurement Policy Act (as added by section 6001(c)).
Subtitle B--Additional Amendments
SEC. 6051. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.
(a) Amendment of OFPP Act.--The Office of Federal Procurement
Policy Act, as amended by section 1092, is further amended by inserting
after section 22 the following new section 23:
``contracting functions performed by federal personnel
``Sec. 23. (a) Limitation on Payment for Advisory and Assistance
Services.--(1) No person who is not a person described in subsection
(b) may be paid by an agency for services to conduct evaluations or
analyses of any aspect of a proposal submitted for an acquisition
unless personnel described in subsection (b) with adequate training and
capabilities to perform such evaluations and analyses are not readily
available within the agency or another Federal agency, as determined in
accordance with standards and procedures prescribed in the Federal
Acquisition Regulation.
``(2) In the administration of this subsection, the head of each
agency shall determine in accordance with the standards and procedures
set forth in the Federal Acquisition Regulation whether--
``(A) a sufficient number of personnel described in
subsection (b) within the agency or another Federal agency are
readily available to perform a particular evaluation or
analysis for the agency head making the determination; and
``(B) the readily available personnel have the training and
capabilities necessary to perform the evaluation or analysis.
``(b) Covered Personnel.--For purposes of subsection (a), the
personnel described in this subsection are as follows:
``(1) An employee, as defined in section 2105 of title 5,
United States Code.
``(2) A member of the Armed Forces of the United States.
``(3) A person assigned to a Federal agency pursuant to
subchapter VI of chapter 33 of title 5, United States Code.
``(c) Rule of Construction.--Nothing in this section is intended to
affect the relationship between the Federal Government and a federally
funded research and development center.''.
(b) Requirement for Guidance and Regulations.--Not later than 90
days 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--
(1) review part 37 of title 48 of the Code of Federal
Regulations as it relates to the use of advisory and assistance
services; and
(2) 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 personnel with expertise
may be shared with agencies needing expertise for such
acquisitions.
SEC. 6052. 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. 6053. INTERESTS OF MEMBERS OF CONGRESS.
Section 3741 of the Revised Statutes (41 U.S.C. 22) is amended to
read as follows:
``No member of Congress shall be admitted to any share or part of
any contract or agreement made, entered into, or accepted by or on
behalf of the United States, or to any benefit to arise thereupon.''.
SEC. 6054. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED FOR
ACQUISITION REGULATIONS.
Section 22(a) of the Office of Federal Procurement Policy Act (41
U.S.C. 418b) is amended--
(1) by striking out ``30 days'' and inserting in lieu
thereof ``60 days''; and
(2) by adding at the end the following: ``Notwithstanding
the preceding sentence, such a policy, regulation, procedure,
or form may take effect earlier than 60 days after the
publication date when there are compelling circumstances for
the earlier effective date, but in no event may that effective
date be less than 30 days after the publication date.''.
Subtitle C--Whistleblower Protection
SEC. 6101. ARMED SERVICES PROCUREMENTS.
(a) Whistleblower Protections for Contractor Employees.--Section
2409 of title 10, United States Code, is amended--
(1) by striking out subsection (d);
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new
subsection (c):
``(c) Remedy and Enforcement Authority.--(1) If the Secretary of
Defense determines that a defense contractor has subjected a person to
a reprisal prohibited by subsection (a), the Secretary may take one or
more of the following actions:
``(A) Order the defense contractor to take affirmative
action to abate the reprisal.
``(B) Order the defense contractor to reinstate the person
to the position that the person held before the reprisal,
together with the compensation (including back pay), employment
benefits, and other terms and conditions of employment that
would apply to the person in that position if the reprisal had
not been taken.
``(C) Order the defense contractor to pay the complainant
an amount equal to the aggregate amount of all costs and
expenses (including attorney's fees and expert witnesses' fees)
that were reasonably incurred by the complainant for, or in
connection with, bringing the complaint regarding the reprisal,
as determined by the Secretary.
``(2) Whenever a person fails to comply with an order issued under
paragraph (1), the Secretary shall file an action for enforcement of
such order in the United States district court for a district in which
the reprisal was found to have occurred. In any action brought under
this paragraph, the court may grant appropriate relief, including
injunctive relief and compensatory and exemplary damages.
``(3) Any person adversely affected or aggrieved by an order issued
under paragraph (1) may obtain review of the order's conformance with
this subsection, and any regulations issued to carry out this section,
in the United States court of appeals for a circuit in which the
reprisal is alleged in the order to have occurred. No petition seeking
such review may be filed more than 60 days after issuance of the
Secretary's order. Review shall conform to chapter 7 of title 5.''.
(b) Related Law.--
(1) Repeal.--Section 2409a 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 2409a.
SEC. 6102. GOVERNMENTWIDE WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR
EMPLOYEES.
The Office of Federal Procurement Policy Act (41 U.S.C. 401 et
seq.), as amended by section 5091, is further amended by adding at the
end the following new section:
``contractor employees: protection from reprisal for disclosure of
certain information
``Sec. 32. (a) Prohibition of Reprisals.--An employee of an
executive agency contractor may not be discharged, demoted, or
otherwise discriminated against as a reprisal for disclosing to a
Member of Congress or an authorized official of the agency or the
Department of Justice information relating to a substantial violation
of law related to an agency contract (including the competition for or
negotiation of an agency contract).
``(b) Investigation of Complaints.--A person who believes that the
person has been subjected to a reprisal prohibited by subsection (a)
may submit a complaint to the Inspector General of the executive
agency. Unless the Inspector General determines that the complaint is
frivolous, the Inspector General shall investigate the complaint and,
upon completion of such investigation, submit a report of the findings
of the investigation to the person, the contractor concerned, and the
head of the agency. In the case of an executive agency that does not
have an inspector general, the duties of the inspector general under
this section shall be performed by an official designated by the agency
head.
``(c) Remedy and Enforcement Authority.--(1) If the head of an
executive agency determines that an agency contractor has subjected a
person to a reprisal prohibited by subsection (a), the agency head may
take one or more of the following actions:
``(A) Order the contractor to take affirmative action to
abate the reprisal.
``(B) Order the contractor to reinstate the person to the
position that the person held before the reprisal, together
with the compensation (including back pay), employment
benefits, and other terms and conditions of employment that
would apply to the person in that position if the reprisal had
not been taken.
``(C) Order the contractor to pay the complainant an amount
equal to the aggregate amount of all costs and expenses
(including attorney's fees and expert witnesses' fees) that
were reasonably incurred by the complainant for, or in
connection with, bringing the complaint regarding the reprisal,
as determined by the Secretary.
``(2) Whenever a person fails to comply with an order issued under
paragraph (1), the agency head shall file an action for enforcement of
such order in the United States district court for a district in which
the reprisal was found to have occurred. In any action brought under
this paragraph, the court may grant appropriate relief, including
injunctive relief and compensatory and exemplary damages.
``(3) Any person adversely affected or aggrieved by an order issued
under paragraph (1) may obtain review of the order's conformance with
this subsection, and any regulations issued to carry out this section,
in the United States court of appeals for a circuit in which the
reprisal is alleged in the order to have occurred. No petition seeking
such review may be filed more than 60 days after issuance of the agency
head's order. Review shall conform to chapter 7 of title 5, United
States Code.
``(d) Construction.--Nothing in this section may be construed to
authorize the discharge of, demotion of, or discrimination against an
employee for a disclosure other than a disclosure protected by
subsection (a) or to modify or derogate from a right or remedy
otherwise available to the employee.
``(e) Coordination With Other Law.--This section does not apply
with respect to the Department of Defense. For the corresponding
provision of law applicable to the Department of Defense, see section
2409 of title 10, United States Code.
``(f) Definition.--In this section, the term `Inspector General'
means an Inspector General appointed under the Inspector General Act of
1978.''.
TITLE VII--DEFENSE TRADE AND COOPERATION
SEC. 7001. PURCHASES OF FOREIGN GOODS.
(a) Repeal of Executed Requirements.--
(1) 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).
(2) Reporting requirement.--Section 9096(b) of Public Law
102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) is repealed.
(b) Repeal of Redundant Provision.--
(1) Consideration of national security objectives.--Section
2327 of title 10, United States Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 137 of such title is amended by striking
out the item relating to section 2327.
SEC. 7002. INTERNATIONAL COOPERATIVE AGREEMENTS.
(a) Terminology Revisions.--Section 2531 of title 10, United States
Code, is amended--
(1) in the subsection captions for subsections (a) and (c),
by striking out ``MOUs and Related'' and inserting in lieu
thereof ``International'';
(2) 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 above paragraph (1) and inserting in lieu thereof
``proposed international agreement, including a memorandum of
understanding,'';
(3) by striking out ``memorandum of understanding or
related agreement'' each place it appears and inserting in lieu
thereof ``international agreement'';
(4) 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
(5) in subsection (c)--
(A) by striking out ``A'' after ``Agreements.--''
and inserting in lieu thereof ``An''; and
(B) by striking out ``memorandum or agreement'' and
inserting in lieu thereof ``international agreement''.
(b) Expanded Scope of Agreements.--Section 2531(a) of title 10,
United States Code, is amended by striking out ``research, development,
or production'' in the matter above paragraph (1) and inserting in lieu
thereof ``research, development, production, or logistics support''.
(c) Clerical Amendments.--
(1) Section heading.--The heading of section 2531 of title
10, United States Code, is amended to read as follows:
``Sec. 2531. Defense international agreements''.
(2) 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.''.
SEC. 7003. ACQUISITION, CROSS-SERVICING AGREEMENTS, AND
STANDARDIZATION.
(a) Limited Waiver of Restrictions on Accrued Reimbursable
Liabilities and Credits for Contingency Operations.--Section 2347 of
title 10, United States Code, is amended by adding at the end the
following new subsection:
``(c) The Secretary of Defense may waive the restrictions in
subsections (a) and (b) for a period not to exceed 180 days upon a
written determination that the armed forces are involved in a
contingency operation or that involvement of the armed forces in a
contingency operation is imminent. Upon making such a determination,
the Secretary shall transmit a copy of the determination to the
Committees on Armed Services of the Senate and House of
Representatives.''.
(b) Communications Support.--Section 2350f of title 10, United
States Code, is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection:
``(d)(1) Nothing in this section shall be construed to limit the
authority of the Secretary of Defense, without a formal bilateral
agreement or multilateral arrangement, to furnish communications
support and related supplies to, or receive communications support and
related supplies from, an allied country in accordance with this
subsection.
``(2) The Secretary of Defense may furnish or receive such support
and supplies on a reciprocal basis for a period not to exceed 90 days--
``(A) in order to meet emerging operational requirements of
the United States and the allied country; or
``(B) incident to a joint military exercise with the allied
country.
``(3) If interconnection of communication circuits is maintained
for joint or multilateral defense purposes under the authority of this
subsection, the costs of maintaining such circuits may be allocated
among the various users.''.
TITLE VIII--COMMERCIAL ITEMS
SEC. 8001. DEFINITIONS.
Section 4 of the Office of Federal Procurement Policy Act (41
U.S.C. 403), as amended by section 4001(a), is further 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;
(4) in paragraphs (4) and (10), by striking out ``; and''
at the end and inserting in lieu thereof a period; and
(5) by adding at the end the following new paragraphs:
``(12) The term `commercial item' means--
``(A) property, other than real property, that is
of a type customarily used by the general public or by
nongovernmental entities in the course of normal
business operations for purposes other than
governmental purposes and--
``(i) has been sold, leased, or licensed to
the general public;
``(ii) has not been sold, leased, or
licensed to the general public but has been
offered for sale, lease, or license to the
general public; or
``(iii) is not yet available in the
commercial marketplace but will be made
available for commercial delivery within a
reasonable period;
``(B) 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);
``(C) any combination of items meeting the
requirements of subparagraph (A), (B), or (D) that are
of a type customarily combined and sold in combination
to the general public;
``(D) installation services, maintenance services,
repair services, training services, and other services
if such services are procured for support of an item
referred to in subparagraph (A), (B), or (C) and if the
source of such services--
``(i) offers such services to the general
public and the Federal Government
contemporaneously and under similar terms and
conditions; and
``(ii) offers to use the same work force
for providing the Federal Government with such
services as the source uses for providing such
services to the general public; and
``(E) any item, combination of items, or service
referred to in subparagraph (A), (B), (C), or (D),
regardless of whether the item, combination of items,
or service is transferred between or among separate
divisions, subsidiaries, or affiliates of a contractor.
``(13) The term `nondevelopmental item' means--
``(A) any commercial item;
``(B) 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;
``(C) any item of supply described in subparagraph
(A) or (B) that requires only minor modification of the
type normally available in the commercial marketplace
in order to meet the requirements of the procuring
department or agency; or
``(D) any item of supply currently being produced
that does not meet the requirements of subparagraph
(A), (B), or (C) solely because the item--
``(i) is not yet in use; or
``(ii) is not yet available in the
commercial marketplace.
``(14) The term `component' means any item supplied to the
Federal Government as part of an end item or of another
component.
``(15) The term `commercial component' means any component
that is a commercial item.''.
SEC. 8002. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS AND
NONDEVELOPMENTAL ITEMS.
(a) Preference Required.--The Office of Federal Procurement Policy
Act (41 U.S.C. 401 et seq.), as amended by section 6102, is further
amended by adding at the end the following new section:
``preference for acquisition of commercial items and nondevelopmental
items
``Sec. 33. (a) Preference.--The head of each executive agency shall
ensure that, to the maximum extent practicable--
``(1) requirements of the executive agency with respect to
a procurement of supplies are stated in terms of--
``(A) functions to be performed;
``(B) performance required; or
``(C) essential physical characteristics;
``(2) such requirements are defined so that commercial
items or, to the extent that commercial items suitable to meet
the agency's needs are not available, other nondevelopmental
items may be procured to fulfill such requirements; and
``(3) offerors of commercial items and other
nondevelopmental items are provided an opportunity to compete
in any procurement to fill such requirements.
``(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 or other nondevelopmental
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 or other nondevelopmental 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 or, to the
extent that commercial items suitable to meet the agency's
needs are not available, other nondevelopmental items;
``(4) state specifications in terms that enable and
encourage bidders and offerors to supply commercial items or,
to the extent that commercial items suitable to meet the
agency's needs are not available, other nondevelopmental items
in response to the executive agency solicitations;
``(5) revise the executive agency's procurement policies,
practices, and procedures 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) 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 or, to
the extent that commercial items suitable to meet the agency's needs
are not available, other nondevelopmental items available that--
``(A) meet the executive agency's requirements;
``(B) could be modified to meet the executive agency's
requirements; or
``(C) could meet the executive agency's requirements if
those requirements were modified to a reasonable extent.''.
(b) Repeal of Superseded Provision.--
(1) Separate statement of preference for department of
defense.--Section 2325 of title 10, United States Code, is
repealed.
(2) Clerical amendment.--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. 8003. ACQUISITION OF COMMERCIAL ITEMS.
(a) Required FAR Provisions.--The Office of Federal Procurement
Policy Act (41 U.S.C. 401 et seq.), as amended by section 8002, is
further amended by adding at the end the following:
``federal acquisition regulation provisions regarding acquisitions of
commercial items and components
``Sec. 34. (a) Contract Clauses and Other Clauses.--(1)(A) The
Federal Acquisition Regulation shall include one or more sets of
contract clauses containing the required terms and conditions for the
acquisition of commercial items and commercial components by executive
agencies and by contractors in the performance of contracts of
executive agencies.
``(B) The contract clauses referred to in subparagraph (A) shall
include only--
``(i) those clauses that are required to implement
provisions of law applicable to acquisitions of commercial
items or commercial components, as the case may be;
``(ii) those contract clauses that are essential for the
protection of the Federal Government's interest in an
acquisition of commercial items or commercial components, as
the case may be; and
``(iii) those contract clauses that are determined to be
consistent with standard commercial practice.
``(2) Subject to paragraph (3), the Federal Acquisition Regulation
shall require that, to the maximum extent practicable, only the
contract clauses referred to in paragraph (1) be used in a contract, or
be required to be used in a subcontract, for the acquisition of
commercial items or commercial components by or for an executive
agency.
``(3) The Federal Acquisition Regulation shall provide that a
contract or subcontract referred to in paragraph (2) may contain
contract clauses other than the contract clauses referred to in that
paragraph only if the other clauses are essential for the protection of
the Federal Government's interest in--
``(A) that contract or subcontract, as determined in
writing by the contracting officer for such contract; or
``(B) a class of contracts or subcontracts, as determined
by the head of an agency concerned, unless the determination of
that head of an agency is disapproved by the Administrator.
``(4) The Federal Acquisition Regulation shall provide standards
and procedures for waiving the use of contract clauses required
pursuant to paragraph (1), other than those required by law, including
standards for determining the cases in which a waiver is appropriate.
``(b) Market Acceptance.--The Federal Acquisition Regulation shall
provide that under appropriate conditions the head of an executive
agency may require offerors to demonstrate that the items offered--
``(1) have either--
``(A) achieved commercial market acceptance; or
``(B) been satisfactorily supplied to an executive
agency under current or recent contracts for the same
or similar requirements; and
``(2) otherwise meet the item description, specifications,
or other criteria prescribed in the public notice and
solicitation relating to the contract.
``(c) Use of Firm, Fixed Price Contracts.--The Federal Acquisition
Regulation shall include a requirement that firm, fixed price contracts
or fixed price with economic price adjustment contracts, be used, to
the maximum extent practicable, for the acquisition of commercial
items.
``(d) Contract Quality Requirements.--The Federal Acquisition
Regulation shall include provisions that--
``(1) permit, to the maximum extent practicable, a
contractor under a commercial items acquisition to use the
contractor's existing quality assurance system as a substitute
for compliance with a requirement for the Federal Government to
inspect or test the commercial items before the contractor's
tender of those items for acceptance by the Federal Government;
``(2) require that, to the maximum extent practicable, an
executive agency accept commercial warranties (including
extended warranties) offered by offerors of commercial items to
commercial customers and use such warranties for the repair and
replacement of commercial items; and
``(3) set forth guidance to executive agencies regarding
the use of past performance of items and sources as a factor in
contract award decisions.''.
``(e) Treatment of Transfers Between Affiliates.--The Federal
Acquisition Regulation shall provide for a transfer of commercial items
from one division, subsidiary, or affiliate of a contractor to another
division, subsidiary, or affiliate of the contractor to be treated as a
subcontract for purposes of section 35 of the Office of Federal
Procurement Policy Act and the provisions of law amended by section
8005 of the Federal Acquisition Streamlining Act of 1994.''.
(b) Defense Contract Clauses.--
(1) Termination 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) shall cease to
be effective on the date on which the regulations implementing
section 34 of the Office of Federal Procurement Policy Act, as
added by subsection (a), become effective.
(2) Savings provision.--Notwithstanding section 34(a) of
the Office of Federal Procurement Policy Act (as added by
subsection (a)), contracts of the Department of Defense entered
into before the date on which section 824(b) ceases to be
effective under paragraph (1), and subcontracts entered into
before such date under such contracts, 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. 8004. CLASS WAIVER OF APPLICABILITY OF CERTAIN LAWS.
The Office of Federal Procurement Policy Act (41 U.S.C. 401 et
seq.), as amended by section 8003, is further amended by adding at the
end the following:
``class waiver of applicability of certain laws to acquisitions of
commercial items
``Sec. 35. (a) In General.--The applicability of a provision of law
described in subsection (c) that is enacted after the date of the
enactment of the Federal Acquisition Streamlining Act of 1994 to
contracts for the acquisition of commercial items may be waived on a
class basis in the Federal Acquisition Regulation. Such a waiver shall
not apply to a provision of law that expressly refers to this section
and prohibits the waiver of that provision of law.
``(b) Waiver of Applicability to Subcontracts.--(1) The
applicability of a provision of law described in subsection (c) to
subcontracts under a contract for the acquisition of commercial items
or a subcontract for the acquisition of commercial components may be
waived on a class basis in the Federal Acquisition Regulation. Such a
waiver shall not apply to a provision of law that expressly refers to
this section and prohibits the waiver of that provision of law.
``(2) Nothing in this subsection shall be construed to authorize
the waiver of the applicability of any provision of law with respect
to--
``(A) any contract with a prime contractor; or
``(B) any subcontract under a contract with a prime
contractor who does not substantially transform the commercial
items supplied under the contract.
``(c) Covered Law.--A provision of law referred to in subsections
(a) and (b) is any provision of law that, as determined by the Federal
Acquisition Regulatory Council, sets forth policies, procedures,
requirements, or restrictions for the procurement of property or
services by the Federal Government.''.
SEC. 8005. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.
(a) Armed Services Acquisitions.--
(1) Prohibition on contingent fees.--Section 2306(b) of
title 10, United States Code, as amended by section 4022(a), is
further amended by inserting before the period at the end of
the sentence added by section 4022(a) the following: ``or to a
contract for the acquisition of commercial items''.
(2) 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 2302 of this title.''.
(3) Prohibition against doing business with certain
offerors or contractors.--Section 2393(d) of title 10, United
States Code, as amended by section 4022(e), 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 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(12))).''.
(4) Prohibition on limitation of subcontractor direct
sales.--Section 2402 of title 10, United States Code, as
amended by section 4022(b), 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 Federal Government 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 4(12) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(12)).''.
(5) Contractor inventory accounting systems: standards.--
Section 2410b of title 10, United States Code, is amended--
(A) by inserting ``(a) Regulations Required.--''
before ``The Secretary of Defense''; and
(B) by adding at the end the following new
subsection:
``(b) Inapplicability to Acquisitions of Commercial Items.--The
regulations prescribed pursuant to subsection (a) need not apply to a
contract for the acquisition of commercial items (as defined in section
4(12) of the Office of Federal Procurement Policy Act (41 U.S.C.
403(12))).''.
(6) Prohibition on persons convicted of defense-contract
related felonies.--Paragraph (4) of section 2408(a) of title
10, United States Code, as added by section 4022(f), is
amended--
(A) by inserting after subparagraph (A) the
following:
``(B) A contract referred to in such subparagraph that is
for the acquisition of commercial items (as defined in section
4(12) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(12))).''; and
(B) by inserting ``or (B)'' before the period at
the end of subparagraph (C).
(b) Civilian Agency Acquisitions.--
(1) Restrictions on subcontractor 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 4023(b), 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.''.
(2) Prohibition on 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 4023(a) is further
amended by inserting before the period at the end of the
sentence added by section 4041 the following: ``or to a
contract for the acquisition of commercial items''.
(c) Acquisitions Generally.--
(1) Federal water pollution control act.--Section 508 of
the Federal Water Pollution Control Act (33 U.S.C. 1368) is
amended by adding at the end the following new subsection:
``(f)(1) No certification by a contractor, and no contract clause,
may be required in the case of a contract for the acquisition of
commercial items in order to implement a prohibition or requirement of
this section or a prohibition or requirement issued in the
implementation of this section.
``(2) In paragraph (1), the term `commercial item' has the meaning
given such term in section 4(12) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(12)).''.
(2) Contract work hours and safety standards act.--The
Contract Work Hours and Safety Standards Act (title I of the
Work Hours and Safety Act of 1962 (40 U.S.C. 327 et seq.)) is
amended by adding at the end the following new section:
``Sec. 108. (a) No certification by a contractor, and no contract
clause, may be required in the case of a contract for the acquisition
of commercial items in order to implement a prohibition or requirement
in this title.
``(b) In subsection (a), the term `commercial item' has the meaning
given such term in section 4(12) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(12)).''.
(3) Office of federal procurement policy act requirement
relating to procurement integrity certifications.--Section
27(e)(7) of the Office of Federal Procurement Policy Act (41
U.S.C. 423) is amended by adding at the end the following new
subparagraph:
``(C) This subsection does not apply to a contract for the
acquisition of commercial items.''.
(4) Certain provisions of the anti-kickback act of 1986.--
(A) Requirement for contract clause.--Section 7 of
the Anti-Kickback Act of 1986 (41 U.S.C. 57), as
amended by section 4024(b), is further amended by
inserting before the period at the end of subsection
(d) the following: ``or to a prime contract for the
acquisition of commercial items (as defined in section
4(12) of such Act (41 U.S.C. 403(12))).''.
(B) Inspection authority.--Section 8 of such Act
(41 U.S.C. 58) is amended by adding at the end the
following: ``This section does not apply with respect
to a prime contract for the acquisition of commercial
items (as defined in section 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(12))).''.
(5) Drug-free workplace act of 1988.--Section 5152(a)(1) of
the Drug-Free Workplace Act of 1988 (subtitle D of title V of
Public Law 100-690; 41 U.S.C. 701(a)(1)), as amended by section
4024(e), is further amended by inserting after the matter
inserted by such section 4024(e) the following: ``, other than
a contract for the procurement of commercial items (as defined
in section 4(12) of such Act (41 U.S.C. 403(12))),''.
(6) Clean air act.--Section 306 of the Clean Air Act (42
U.S.C. 7606) is amended by adding at the end the following new
subsection:
``(f)(1) No certification by a contractor, and no contract clause,
may be required in the case of a contract for the acquisition of
commercial items in order to implement a prohibition or requirement of
this section or a prohibition or requirement issued in the
implementation of this section.
``(2) In paragraph (1), the term `commercial item' has the meaning
given such term in section 4(12) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(12)).''.
(7) Fly american requirements.--Section 1117 of the Federal
Aviation Act of 1958 (49 U.S.C. App. 1517) is amended by adding
at the end the following new subsection:
``(e)(1) No certification by a contractor, and no contract clause,
may be required in the case of a contract for the transportation of
commercial items in order to implement a requirement in this section.
``(2) In paragraph (1), the term `commercial item' has the meaning
given such term in section 4(12) of the Office of Federal Procurement
Policy Act (41 U.S.C. 403(12)).''.
SEC. 8006. 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 by adding at the end the following new
paragraph:
``(4) The requirements of paragraph (3)(B) do not apply to
contracts for the purchase of commercial items. The Administrator shall
prescribe for such contracts appropriate limits on the applicability of
a deadline for submission of bids or proposals that is required by
subsection (a)(1). Such limits shall be incorporated in the Federal
Acquisition Regulation.''.
SEC. 8007. ADVOCATES FOR ACQUISITION OF COMMERCIAL AND NONDEVELOPMENTAL
ITEMS.
(a) Responsibilities of the Advocate 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.''.
(b) Repeal of Superseded Provision.--Section 28 of such Act (41
U.S.C. 424) is repealed.
SEC. 8008. PROVISIONS NOT AFFECTED.
Nothing in this title shall be construed as amending, modifying, or
superseding, or as 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), popularly 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.), popularly
referred to as the ``Brooks Architect-Engineers Act'';
(3) section 8(a) of the Small Business Act (15 U.S.C.
637(a)) or any other provision of that Act; or
(4) 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. 8009. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERNMENT USE OF
MARKET RESEARCH.
(a) Report Required.--Not later than 2 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 IX--EFFECTIVE DATES AND IMPLEMENTATION
SEC. 9001. EFFECTIVE DATES.
(a) Effective Date of Act.--Except as otherwise provided in this
Act, this Act shall take effect on the date of the enactment of this
Act.
(b) Effective Date of Amendments.--Except as otherwise provided in
this Act, the amendments made by this Act shall take effect on the date
on which final implementing regulations are prescribed in accordance
with section 9002.
SEC. 9002. IMPLEMENTING REGULATIONS.
(a) Proposed Changes.--Proposed changes to the Federal Acquisition
Regulation and such other proposed regulations (or changes to existing
regulations) as may be necessary to implement this Act shall be
published in the Federal Register not later than 210 days after the
date of the enactment of this Act.
(b) Public Comment.--The proposed regulations described in
subsection (a) shall be made available for public comment for a period
of not less than 60 days.
(c) Final Regulations.--Final regulations shall be published in the
Federal Register not later than 330 days after the date of enactment of
this Act.
(d) Applicability.--(1) The amendments made by this Act shall
apply, in the manner prescribed in such final regulations, to any
solicitation that is issued or any unsolicited proposal that is
received on or after the date described in paragraph (3).
(2) The amendments made by this Act shall apply, to the extent and
in the manner prescribed in such final regulations, to any matter
related to--
(A) a contract that is in effect on the date described in
paragraph (3);
(B) an offer under consideration on the date described in
paragraph (3); or
(C) any other proceeding or action that is ongoing on the
date described in paragraph (3).
(3) The date referred to in paragraphs (1) and (2) is the date
specified in such regulations, which--
(A) shall not be earlier than the end of the 30-day period
that begins on the date the regulations required by subsection
(c) are published; and
(B) shall not be later than October 1, 1995.
(e) Savings Provision.--Nothing in this Act shall be construed to
affect the validity of any action taken or any contract entered into
prior to the date specified in the regulations pursuant to subsection
(d)(3) except to the extent and in the manner prescribed in such
regulations.
SEC. 9003. EVALUATION BY THE COMPTROLLER GENERAL.
(a) Evaluation Relating to Issuance of Regulations.--Not later than
December 1, 1995, the Comptroller General shall submit to the
committees referred to in subsection (c) a report evaluating compliance
with the requirements in section 9002, relating to the issuance of
implementing regulations.
(b) Evaluation of Implementation of Regulations.--Not later than
December 1, 1996, the Comptroller General shall submit to the
committees referred to in subsection (c) a report evaluating the
effectiveness of the regulations implementing this Act in streamlining
the acquisition system and fulfilling the other purposes of this Act.
(c) Committees Designated To Receive the Reports.--The Comptroller
General shall submit the reports required by this section to the
Committees on Armed Services and on Governmental Affairs of the Senate
and the Committees on Small Business on Government Operations of the
House of Representatives.
SEC. 9004. DATA COLLECTION THROUGH THE FEDERAL PROCUREMENT DATA SYSTEM.
(a) Data Collection Required.--The Federal Procurement Data System
described in section 6(d)(4)(A) of the Office of Federal Procurement
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect from
contracts in excess of the simplified acquisition threshold data
pertaining to the following matters:
(1) Contract awards made pursuant to competitions conducted
pursuant to section 2323 of title 10, United States Code, or
section 8(c) of the Small Business Act (15 U.S.C. 637(c)).
(2) Awards to business concerns owned and controlled by
women.
(3) Number of offers received in response to a
solicitation.
(4) Task order contracts.
(5) Contracts for the acquisition of commercial items.
(b) Definition.--In this section, the term ``simplified acquisition
threshold'' has the meaning given such term in section 4 of the Office
of Federal Procurement Policy Act (41 U.S.C. 403).
S 1587 RS----2
S 1587 RS----3
S 1587 RS----4
S 1587 RS----5
S 1587 RS----6
S 1587 RS----7
S 1587 RS----8
S 1587 RS----9
S 1587 RS----10
S 1587 RS----11
S 1587 RS----12
S 1587 RS----13
S 1587 RS----14
S 1587 RS----15
S 1587 RS----16
S 1587 RS----17
S 1587 RS----18
S 1587 RS----19