[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2238 Reported in House (RH)]

                                                 Union Calendar No. 303
103d CONGRESS
  2d Session
                                H. R. 2238

                  [Report No. 103-545, Parts I and II]

 To amend laws relating to Federal procurement, to authorize functions 
 and activities under the Federal Property and Administrative Services 
                  Act of 1949, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 1993

  Mr. Conyers (for himself and Mr. Dellums) introduced the following 
   bill; which was referred jointly to the Committees on Government 
                     Operations and Armed Services

                             June 13, 1994

 Reported from the Committee on Government Operations with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                           in boldface roman]

                             June 17, 1994

    Additional sponsors: Mr. Clinger, Mr. Kleczka, and Mrs. Maloney

                             June 17, 1994

    Reported from the Committee on Armed Services with amendments, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 24, 
                                 1993]

_______________________________________________________________________

                                 A BILL


 
 To amend laws relating to Federal procurement, to authorize functions 
 and activities under the Federal Property and Administrative Services 
                  Act of 1949, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Acquisition Improvement Act 
of 1993''.

           TITLE I--ENHANCEMENT OF COMPETITION IN CONTRACTING

              Subtitle A--Acquisition of Commercial Items

SEC. 111. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

    Section 16 of the Office of Federal Procurement Policy Act (41 
U.S.C. 414) is amended by redesignating paragraphs (2), (3), and (4) in 
order as paragraphs (3), (4), and (5), respectively, and by inserting 
after paragraph (1) the following new paragraph:
            ``(2) implement a preference for the acquisition of 
        commercial items by--
                    ``(A) whenever practicable, stating specifications 
                in solicitation for bids and proposals in terms such 
                that bidders and offerors are enabled and encouraged to 
                offer to supply commercial items in response to agency 
                solicitations;
                    ``(B) reducing impediments to the acquisition of 
                commercial items in agency procurement policies, 
                practices, and procedures not required by law; and
                    ``(C) requiring training of appropriate personnel 
                in the acquisition of commercial items;''.

SEC. 112. ACQUISITION OF COMMERCIAL ITEMS.

    Section 28 of the Office of Federal Procurement Policy Act (41 
U.S.C. 424) is amended to read as follows:

``SEC. 28. ACQUISITION OF COMMERCIAL ITEMS.

    ``(a) Market Research.--Before soliciting bids or proposals for a 
contract for property or services, an executive agency shall conduct 
market research, appropriate to the circumstances, to determine whether 
the needs of the agency can be met by the acquisition of commercial 
items.
    ``(b) Advocate for Acquisition of Commercial Items.--
            ``(1) Establishment.--There is established in the Office of 
        Federal Procurement Policy the position of Advocate for the 
        Acquisition of Commercial Items (hereinafter in this subsection 
        referred to as the `Advocate').
            ``(2) Functions.--The Advocate shall--
                    ``(A) monitor compliance by executive agencies with 
                the preference required under section 16(2) for the 
                acquisition of commercial items;
                    ``(B) make recommendations and proposals to the 
                Administrator regarding the reform of procurement 
                statutes and regulations to implement that preference; 
                and
                    ``(C) report to the Administrator on the 
                prospective effect of proposed statutes and regulations 
                on the acquisition of commercial items.''.

SEC. 113. REGULATIONS AND SIMPLIFIED FORM CONTRACTS.

    (a) Revision of FAR.--Unless otherwise specifically provided in 
this title, not later than 180 days after the date of the enactment of 
this title, the Federal Acquisition Regulation issued under section 
25(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 
421(c)) shall be revised to implement the amendments made by this 
subtitle.
    (b) Simplified Uniform Contract.--(1)(A) The revision of the 
Federal Acquisition Regulation under subsection (a) shall include 
issuance of one or more simplified uniform contracts for the 
acquisition of commercial items by Federal agencies and shall require 
that such simplified uniform contract or contracts be used for the 
acquisition of commercial items to the maximum extent practicable. The 
uniform contract or contracts shall include only--
            (i) those contract clauses that are required to implement 
        provisions of law applicable to such an acquisition;
            (ii) those contract clauses that are essential for the 
        protection of the Federal Government's interest in such an 
        acquisition; and
            (iii) those contract clauses that are determined to be 
        consistent with standard commercial practice and appropriate 
        for inclusion in such contracts.
    (B) In addition to the clauses described under subparagraph (A), 
contracts for the acquisition of commercial items may include such 
clauses as are essential for the protection of the Federal Government's 
interest in--
            (i) a particular contract, as determined in writing by the 
        contracting officer for such contract; or
            (ii) a class of contracts, as determined by the agency 
        head, in consultation with the Administrator for Federal 
        Procurement Policy.
    (C) Contracts for the acquisition of commercial items may not 
include any clause other than those clauses authorized under 
subparagraph (A) or (B).
    (2)(A) Except as provided in subparagraph (B), a prime contractor 
under a Federal agency contract for the acquisition of commercial items 
may only be required to include in subcontracts under such contract--
            (i) those contract clauses that are required to implement 
        provisions of law applicable to such subcontracts; and
            (ii) those contract clauses that are essential for the 
        protection of the Federal Government's interest in such 
        subcontracts.
    (B) In addition to the clauses described under subparagraph (A), a 
contractor under a Federal agency contract for the acquisition of 
commercial items may be required to include in a subcontract under such 
contract such clauses as are essential for the protection of the 
Federal Government's interest in--
            (i) a particular subcontract, as determined in writing by 
        the contracting officer for such contract; or
            (ii) a class of subcontracts, as determined by the agency 
        head, in consultation with the Administrator for Federal 
        Procurement Policy.
    (C) A Federal agency may not require a contractor for the 
acquisition of commercial items to include in a subcontract for that 
acquisition any clause other than those clauses authorized under 
subparagraph (A) or (B).
    (3) Notwithstanding paragraphs (1) and (2) of this subsection, the 
Department of Defense may use uniform contract clauses developed under 
paragraphs (2) and (3) of section 824(b) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 2325 note; 
P.L. 101-189) until September 30, 1995.
    (c) Warranties.--The Federal Acquisition Regulation shall require 
that, to the maximum extent practicable, Federal agencies take 
advantage of warranties offered by commercial contractors and use such 
warranties for the repair and replacement of commercial items.
    (d) Market Acceptance.--The Federal Acquisition Regulation shall 
direct agencies to require, where appropriate and in accordance with 
criteria prescribed in the regulations, offerors to demonstrate in 
their offers that products being offered have--
            (1)(A) achieved a level of commercial market acceptance 
        necessary to indicate that the products are suitable for the 
        agency's use; or
            (B) been satisfactorily supplied under current or recent 
        contracts for the same or similar requirements; and
            (2) otherwise meet the product description, specifications, 
        or other criteria prescribed by the public notice and 
        solicitation.
    (e) Past Performance.--The Federal Acquisition Regulation shall 
provide guidance to Federal agencies on the use of past performance of 
products and sources as a factor in award decisions.

                       Subtitle B--Miscellaneous

SEC. 121. TRUTH IN NEGOTIATIONS ACT.

    (a) Amendments.--Section 304(d)(4) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254(d)(4)) is amended to 
read as follows:
    ``(4) Authority To Require Cost or Pricing Data.--When cost or 
pricing data need not be required to be submitted pursuant to paragraph 
(5), such data shall not be required to be submitted unless the head of 
the agency determines that such data are necessary for the evaluation 
by the agency of the reasonableness of the price of the contract or 
subcontract. In any case in which the head of the agency requires such 
data to be submitted under this paragraph, the head of the agency shall 
document in writing the reasons for such requirement.''.
    (b) Requirement for Revised Regulations.--Not later than 180 days 
after the date of enactment of this Act, the Federal Acquisition 
Regulation issued under section 25(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 421(c)) shall be revised to implement 
section 304(d)(4) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254(d)) and section 2306a(b) of title 10, United 
States Code, as amended by subsection (a) and section 302.
    (c) Provisions To Be Included.--(1) In the case of contracts other 
than cost-reimbursement research and development contracts, the revised 
regulations promulgated under subsection (b) shall provide that cost or 
pricing data may not be requested from a contractor when it is likely 
that circumstances will exist in which an exception to the requirement 
to provide such data is authorized by section 304(d)(5) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254(d)) or 
section 2306a(b) of title 10, United States Code, unless the head of 
the agency determines in writing that such data are necessary for the 
evaluation by the agency of the reasonableness of the price of the 
contract or subcontract.
    (2) The regulations also shall provide clear standards for 
determining whether the exceptions authorized by such sections apply. 
In the case of the exception provided under section 304(d)(5)(A)(i) of 
such Act and section 2306a(b)(1)(A) of such title (relating to adequate 
price competition), the regulations shall specify the criteria that 
will be used to determine whether adequate price competition exists. In 
the case of the exception provided under section 304(d)(5)(A)(ii) of 
such Act and section 2306a(b)(1)(B) of such title (relating to 
established catalog or market prices of commercial items sold in 
substantial quantities to the general public), the regulations shall 
preclude the consideration of sales to the government, including the 
percentage of an item's overall sales that are made to the Government, 
when determining whether the item has been sold in substantial 
quantities to the public.
    (3) The regulations also shall establish reasonable limitations on 
requests for sales data relating to commercial items.

SEC. 122. DEFINITIONS.

    (a) OFPP Act.--Section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403) is amended by--
            (1) striking ``and'' at the end of paragraph (10);
            (2) striking the period at the end of paragraph (11) and 
        inserting ``; and''; and
            (3) adding at the end the following new paragraph:
            ``(12) the term `commercial items' means items regularly 
        used in the course of normal business operations for other than 
        Government purposes, that--
                    ``(A) have been sold, leased, or licensed to the 
                general public;
                    ``(B) have been offered for sale, lease, or license 
                to the general public;
                    ``(C) are not yet available in the commercial 
                marketplace, but will be available in time to satisfy 
                the delivery requirements under a Government 
                solicitation; or
                    ``(D) are items that, but for minor modifications 
                made to meet Government requirements, would satisfy the 
                criteria set forth in subparagraph (A), (B), or (C).''.
    (b) Federal Property and Administrative Services Act of 1949.--
Section 309(c) of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 259(c)) is amended by inserting ```commercial 
items','' immediately after ```item of supply',''.
    (c) Commercial Item Defined.--In this title, the term ``commercial 
items'' has the meaning given that term in section 4 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403), as amended by 
subsection (a).

SEC. 123. EFFECTIVE DATE.

    Unless otherwise specifically provided in this title, the 
amendments made by this title shall be effective 180 days after the 
date of the enactment of this title.

SEC. 124. PROVISIONS NOT AFFECTED.

    Nothing in this title shall be construed as amending, modifying, or 
superseding, or is intended to impair or restrict authorities or 
responsibilities under--
            (1) section 111 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 759), commonly referred to as 
        the ``Brooks Automatic Data Processing Act'';
            (2) title IX of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 541 et seq.), commonly referred 
        to as the ``Brooks Architect-Engineers Act'';
            (3) the Small Business Act (15 U.S.C. 631 et seq.), 
        including section 8(a) of that Act (15 U.S.C. 637(a)); or
            (4) the Act of June 25, 1938 (41 U.S.C. 46-48c), commonly 
        referred to as the ``Javits-Wagner-O'Day Act''.

 TITLE II--AMENDMENTS TO FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES 
                              ACT OF 1949

SEC. 201. AWARD OF MULTIPLE CONTRACTS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b) is amended by adding at the end the 
following:
    ``(g) Award of Multiple Contracts.--In procuring any supply or 
service using competitive procedures, an executive agency may award 
more than one contract for the same supply or service in any case in 
which the head of the agency determines that it is in the best 
interests of the Government to award those contracts for the purpose of 
maintaining a continuous source for the supply or service.''.

SEC. 202. SOLICITATION EVALUATION AND AWARD.

    (a) Solicitation Requirements.--Section 303A of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253a) is 
amended--
            (1) in subsection (b)(1)(A)--
                    (A) by inserting ``and significant subfactors'' 
                after ``all significant factors''; and
                    (B) by striking ``(including price)'' and inserting 
                ``(including cost or price, cost- or price-related 
                factors, and noncost- or nonprice-related factors)'';
            (2) in subsection (b)(1)(B) by inserting ``and subfactors'' 
        after ``factors'';
            (3) in subsection (b)(2)(B) by amending clause (i) to read 
        as follows:
                    ``(i) a statement that the proposals are intended 
                to be evaluated with, and award made after, discussions 
                with the offerors, or that the proposals are intended 
                to be evaluated, and award made, without discussions 
                with the offerors (other than discussions conducted for 
                the purpose of minor clarification), unless discussions 
                are determined to be necessary; and''; and
            (4) by adding at the end the following new subsection:
    ``(c) Establishing Importance of Factors.--(1) In prescribing the 
evaluation factors to be included in each solicitation for competitive 
proposals, the head of an agency--
            ``(A) shall clearly establish the relative importance 
        assigned to the evaluation factors and subfactors, including 
        the quality of the product or services to be provided 
        (including technical capability, management capability, and 
        prior experience of the offeror);
            ``(B) shall include cost or price to the Government as an 
        evaluation factor that must be considered in the evaluation of 
        proposals; and
            ``(C) shall, at a minimum, disclose to offerors whether all 
        evaluation factors other than price or cost, when combined, 
        are--
                    ``(i) significantly more important than price or 
                cost,
                    ``(ii) approximately equal in importance to price 
                or cost, or
                    ``(iii) significantly less important than price or 
                cost.
    ``(2) Nothing in this subsection prohibits an agency from--
            ``(A) providing additional information in a solicitation, 
        including numeric weights for all evaluation factors; or
            ``(B) stating in a solicitation that award will be made to 
        the offeror that meets the solicitation's mandatory 
        requirements at the lowest price or cost.''.
    (b) Evaluation and Award.--Section 303B of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended--
            (1) in subsection (a) by inserting ``and award a contract'' 
        after ``competitive proposals'';
            (2) in subsection (c) in the second sentence by inserting 
        ``in accordance with subsection (a)'' after ``shall evaluate 
        the bids'';
            (3) in subsection (d) by amending paragraph (1) to read as 
        follows:
    ``(1) The executive agency shall evaluate competitive proposals in 
accordance with subsection (a) and may award a contract--
            ``(A) after discussions with the offerors, if written or 
        oral discussions have been conducted with all responsible 
        offerors who submit proposals within the competitive range; or
            ``(B) without discussions with the offerors (other than 
        discussions conducted for the purpose of minor clarification), 
        if the solicitation included a statement that proposals are 
        intended to be evaluated, and award made, without discussions, 
        unless discussions are determined to be necessary.''; and
            (4) in subsection (d) by striking paragraphs (2) and (3) 
        and by redesignating paragraph (4) as paragraph (2).
    (c) Application.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to--
                    (A) solicitations for sealed bids or competitive 
                proposals issued after the end of the 180-day period 
                beginning on the date of the enactment of this Act; and
                    (B) contracts awarded pursuant to those 
                solicitations.
            (2) Earlier application.--The head of an agency may apply 
        the amendments made by this section to solicitations issued 
        before the end of the period referred to in paragraph (1). The 
        head of the agency shall publish in the Federal Register notice 
        of any such earlier date of application before the beginning of 
        the 10-day period ending on that date.

SEC. 203. CERTIFIED COST OR PRICING DATA THRESHOLD.

    (a) Certifying Data.--
            (1) Affected contracts.--Section 304(d) of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 
        254(d)) is amended--
                    (A) by striking out ``$100,000'' each place it 
                appears and inserting in lieu thereof ``the cost or 
                pricing data threshold''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(6) For the purposes of this subsection, the term `the cost or 
pricing data threshold' means $500,000, or, after December 31, 1995, 
$100,000.''.
            (2) Application.--The amendments made by this subsection 
        shall apply to--
                    (A) prime contracts, or subcontracts (without 
                regard to the date on which the associated prime 
                contract was awarded), entered into after the date on 
                which the Federal Acquisition Regulation is promulgated 
                pursuant to section 204; and
                    (B) changes or modifications to prime contracts or 
                subcontracts when those changes or modifications are 
                entered into after the date on which a final revision 
                of the Federal Acquisition Regulation is issued 
                pursuant to section 204.
            (3) Modification.--Upon the request of a contractor, the 
        head of an agency may modify a contract to reflect the dollar 
        thresholds set forth in the revision to the Federal Acquisition 
        Regulation issued pursuant to section 204. Any such 
        modification shall be made without requiring consideration.
    (b) Regulations for Below-Threshold Procurements.--
            (1) Type of procurements.--The Administrator of General 
        Services, in consultation with the Administrator for Federal 
        Procurement Policy, shall prescribe regulations identifying the 
        type of procurements for which contracting officers should 
        consider requiring the submission of certified cost or pricing 
        data under section 304(d) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C 254).
            (2) Types of information.--The Administrator of General 
        Services, in consultation with the Administrator for Federal 
        Procurement Policy, shall prescribe regulations concerning the 
        types of information that offerors may be required to submit 
        for a contracting officer to consider in determining whether 
        the price of a procurement to the Government is fair and 
        reasonable when certified cost or pricing data are not required 
        to be submitted under section 304(d) of such Act because the 
        price of the procurement to the United States is not expected 
        to exceed $500,000. Such information, at a minimum, shall 
        include appropriate information on the prices at which such 
        offeror has previously sold the same or similar products.
            (3) Deadline.--The regulations required under this 
        subsection shall be prescribed no later than 6 months after the 
        date of the enactment of this Act.
    (c) Repeal of Commercial Pricing Requirements.--
            (1) Repeal.--Section 303E of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 253e) is 
        repealed.
            (2) Clerical amendment.--The first section of the Federal 
        Property and Administrative Services Act of 1949 is amended in 
        the table of contents by striking the item relating to section 
        303E.
    (d) Review of Amendments.--
            (1) In general.--After the amendments made by subsections 
        (a) and (c) have been in effect for 1 year, the Comptroller 
        General shall conduct a review of the effects of the 
        amendments. The Comptroller General shall coordinate that 
        review, insofar as possible, with the review conducted by the 
        Inspector General of the Department of Defense pursuant to 
        section 803(b) of the National Defense Authorization Act for 
        Fiscal Year 1991 (Public Law 101-510).
            (2) Factors considered.--The review conducted under 
        paragraph (1) shall address whether the amendments made by 
        subsections (a) and (c) have improved the acquisition process 
        in terms of reduced paperwork, financial or other savings to 
        the Government, an increase in the number of contractors 
        participating in the contracting process, and the adequacy of 
        information available to contracting officers in cases in which 
        certified cost or pricing data are not required.
            (3) Report.--Not later than the date on which the President 
        submits the budget for fiscal year 1996 to the Congress 
        pursuant to section 1105 of title 31, United States Code, the 
        Comptroller General shall submit to the Congress a report on 
        the review conducted under paragraph (1). The report shall 
        include the comments of the Administrator for Federal 
        Procurement Policy and the Administrator of General Services.

SEC. 204. REVISION OF FEDERAL ACQUISITION REGULATION; EFFECTIVE DATE.

    (a) Revision of FAR.--Unless otherwise specifically provided in 
this title, not later than 180 days after the date of the enactment of 
this Act, the Federal Acquisition Regulation issued under section 25(c) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)) 
shall be revised to reflect the amendments made by sections 201, 202, 
203(a) and (c), and 301.
    (b) Effective Date.--Unless otherwise specifically provided in this 
title, the amendments made by this title and section 301 shall be 
effective 180 days after the date of the enactment of this Act.
    (c) Standards and Requirements for Cost and Price as Evaluation 
Factors.--
            (1) In general.--The Federal Acquisition Regulation, as 
        revised pursuant to subsection (a), shall establish standards 
        and requirements for the consideration of cost and price to the 
        Government as evaluation factors under the amendments made by 
        sections 202(a)(4) and 301.
            (2) Standards and requirements.--Standards and requirements 
        established under paragraph (1) shall be adequate to ensure 
        that, to the maximum extent practicable consistent with the 
        needs of the Federal Government in conducting procurements--
                    (A) cost or price is an evaluation factor of 
                sufficient weight to affect each source selection 
                decision; and
                    (B) competition among competing offerors is 
                affected by cost or price.

     TITLE III--AMENDMENTS RELATING TO TITLE 10, UNITED STATES CODE

SEC. 301. SOURCE SELECTION FACTORS.

    Paragraph (3) of section 2305(a) of title 10, United States Code, 
is amended to read as follows:
    ``(3)(A) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, the head of an agency--
            ``(i) shall clearly establish the relative importance 
        assigned to the evaluation factors and subfactors, including 
        the quality of the product or services to be provided 
        (including technical capability, management capability, and 
        prior experience of the offeror);
            ``(ii) shall include cost or price to the Government as an 
        evaluation factor that must be considered in the evaluation of 
        proposals; and
            ``(iii) shall, at a minimum, disclose to offerors whether 
        all evaluation factors other than price or cost, when combined, 
        are--
                    ``(I) significantly more important than price or 
                cost,
                    ``(II) approximately equal in importance to price 
                or cost, or
                    ``(III) significantly less important than price or 
                cost.
    ``(B) Nothing in this paragraph prohibits an agency from--
            ``(i) providing additional information in a solicitation, 
        including numeric weights for all evaluation factors; or
            ``(ii) stating in a solicitation that award will be made to 
        the offeror that meets the solicitation's mandatory 
        requirements at the lowest price or cost.''.

SEC. 302. TRUTH IN NEGOTIATIONS.

    Section 2306a(c) of title 10, United States Code, is amended to 
read as follows:
    ``(c) Authority to Require Cost or Pricing Data.--When cost or 
pricing data need not be required to be submitted pursuant to 
subsection (b), such data shall not be required to be submitted unless 
the head of the agency determines that such data are necessary for the 
evaluation by the agency of the reasonableness of the price of the 
contract or subcontract. In any case in which the head of the agency 
requires such data to be submitted under this subsection, the head of 
the agency shall document in writing the reasons for such 
requirement.''.

                    TITLE IV--BROOKS ACT AMENDMENTS

SEC. 401. SHORT TITLES OF CERTAIN PROVISIONS OF FEDERAL PROPERTY AND 
              ADMINISTRATIVE SERVICES ACT OF 1949.

    (a) Automatic Data Processing Equipment Provisions.--Section 111 of 
the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
759) is amended by adding at the end the following new subsection:
    ``(i) This section may be cited as the `Brooks Automatic Data 
Processing Act'.''.
    (b) Architectural and Engineering Services Provisions.--Title IX of 
the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
541-544) is amended by adding at the end the following new section:

``SEC. 905. SHORT TITLE.

    ``This title may be cited as the `Brooks Architect-Engineers 
Act'.''.

SEC. 402. DISMISSAL; AWARD OF COSTS.

    Section 111(f)(4) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(4)) is amended by striking 
subparagraph (C) and inserting the following:
    ``(C) The board may dismiss a protest that the board determines--
            ``(i) is frivolous,
            ``(ii) has been brought in bad faith, or
            ``(iii) on its face does not state a valid basis for 
        protest.
    ``(D) If a party violates or fails to comply in good faith with, or 
causes a violation of or failure to comply in good faith with, an order 
or decision of the board, the board may require that party to pay to 
any other party the amount of any reasonable costs, including 
attorney's fees, incurred by the other party in seeking compliance with 
such order or decision.''.

SEC. 403. OVERSIGHT OF ACQUISITION OF AUTOMATIC DATA PROCESSING 
              EQUIPMENT BY FEDERAL AGENCIES.

    Section 111 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 759), as amended by this Act, is further amended by 
inserting after subsection (g) the following new subsection:
    ``(h)(1) The Administrator shall collect and compile data from 
Federal agencies regarding the procurement of automatic data processing 
equipment under this section. That data shall include, at a minimum, 
with regard to those procurements specified by the Administrator in 
regulation--
            ``(A) the procuring agency,
            ``(B) the contractor,
            ``(C) the automatic data processing equipment and services 
        procured,
            ``(D) the manufacturer of the equipment procured,
            ``(E) the amount of the contract,
            ``(F) the type of contract used,
            ``(G) the extent of competition for award,
            ``(H) compatibility restrictions, and
            ``(I) significant modifications of the contract.
    ``(2) The head of each Federal agency shall report to the 
Administrator in accordance with regulations issued by the 
Administrator all information required to be compiled by the 
Administrator under paragraph (1).
    ``(3) The Administrator--
            ``(A) shall carry out a systematic review and conduct 
        periodic audits of information received under this subsection;
            ``(B) shall use such information as appropriate to 
        determine the compliance of Federal agencies with the 
        requirements of this section; and
            ``(C) may suspend the delegation to an agency of authority 
        to lease and purchase automatic data processing equipment upon 
        any substantial failure by the head of the agency to report to 
        the Administrator in accordance with this subsection.
    ``(4) The Administrator shall, upon receipt of information that a 
Federal agency has failed to comply with the terms of any delegation of 
authority to lease or purchase automatic data processing equipment or 
has failed to comply with any applicable law or regulation, take 
appropriate corrective action.
    ``(5) Data collected pursuant to this section shall be drawn from 
existing Federal agency information resources, and no new or additional 
information reporting requirements may be imposed on offerors or 
contractors for that purpose.''.

SEC. 404. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date 
which is 180 days after the date of the enactment of this title.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. PROCUREMENT PROTEST SYSTEM IMPROVEMENTS.

    (a) GAO Recommendations on Protests.--Section 3554 of title 31, 
United States Code, is amended--
            (1) in subsection (b) by adding at the end the following 
        new paragraph:
    ``(3) The head of the procuring activity responsible for the 
solicitation, proposed award, or award of a contract shall report to 
the Comptroller General if the Federal agency has not fully implemented 
recommendations of the Comptroller General under this subsection with 
respect to that contract within 60 days after receiving the 
recommendations, by not later than the end of that 60-day period.'';
            (2) in subsection (c)(1) by striking ``declare an 
        appropriate interested party to be entitled to'' and inserting 
        ``recommend that the Federal agency conducting the procurement 
        pay to an appropriate interested party'';
            (3) by amending subsection (c)(2) to read as follows:
    ``(2) If the Comptroller General recommends under paragraph (1) 
that a Federal agency pay an amount of costs to an interested party, 
the Federal agency shall--
            ``(A) pay the amount promptly out of amounts appropriated 
        by section 1304 of this title for the payment of judgments, and 
        reimburse that appropriation account out of available funds or 
        by obtaining additional appropriations for that purpose, or
            ``(B) report to the Comptroller General promptly why the 
        recommendation will not be followed by the agency.''.
            (4) by adding at the end of subsection (c) the following 
        new paragraph:
    ``(3) An interested party to which the Comptroller General has 
recommended that costs be paid under paragraph (1) and the Federal 
agency recommended to pay those costs shall attempt to reach agreement 
on the amount of the costs to be paid, but if they are unable to agree, 
a party may request that the Comptroller General recommend the amount 
of the costs to be paid.''; and
            (5) by amending subsection (e) to read as follows:
    ``(e)(1) The Comptroller General shall report promptly to the 
Committee on Government Operations and the Committee on Appropriations 
of the House of Representatives and to the Committee on Governmental 
Affairs and the Committee on Appropriations of the Senate in any case 
in which a Federal agency fails to implement fully a recommendation of 
the Comptroller General under subsection (b) or (c). The report shall 
include--
            ``(A) a comprehensive review of the pertinent procurement, 
        including the circumstances of the failure of the Federal 
        agency to implement a recommendation of the Comptroller 
        General, and
            ``(B) a recommendation regarding whether, in order to 
        correct inequity or to preserve the integrity of the 
        procurement process, the Congress should consider--
                    ``(i) private relief legislation;
                    ``(ii) legislative rescission or cancellation of 
                funds;
                    ``(iii) further investigation by the Congress; or
                    ``(iv) other action.
    ``(2) Not later than January 31 of each year, the Comptroller 
General shall transmit to the Congress a summary report describing each 
instance in which a Federal agency did not fully implement a 
recommendation of the Comptroller General under subsection (b) or (c) 
during the preceding year.''.
    (b) Ratification of Prior Awards.--Amounts to which the Comptroller 
General declared an interested party to be entitled under section 3554 
of title 31, United States Code, as in effect immediately before the 
enactment of this Act, shall, if not paid or otherwise satisfied by the 
Federal agency concerned before the date of the enactment of this Act, 
be paid promptly from the appropriation made by section 1304 of title 
31, United States Code, for the payment of judgments, and the Federal 
agency shall reimburse that appropriation account out of available 
funds or by obtaining additional appropriations for that purpose.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect at the end of the 45-day period beginning on the date of 
the enactment of this Act.
    (d) Restriction on Access to Certain Information.--Section 3553(f) 
of title 31, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(f)''; and
            (2) by adding at the end the following:
    ``(2)(A) The Comptroller General may issue protective orders which 
establish terms, conditions, and restrictions for the provision of any 
document to a person under paragraph (1), that prohibit or restrict the 
disclosure by the person of information described in subparagraph (C) 
that is contained in such a document.
    ``(B) The penalties specified under section 27(i) of the Office of 
Federal Procurement Policy Act shall apply to the disclosure of 
information described in subparagraph (C) in violation of a term, 
condition, or restriction in a protective order under this paragraph by 
a person that is subject to the protective order.
    ``(C) Information referred to in subparagraphs (A) and (B) is 
procurement sensitive information, trade secrets, or other proprietary 
or confidential research, development, or commercial information.
    ``(D) A protective order under this paragraph shall not be 
considered to authorize the withholding of any document or information 
from the Congress or an executive agency.''.

SEC. 502. POST-AWARD DEBRIEFINGS.

    (a) Amendment to Office of Federal Procurement Policy Act.--The 
Office of Federal Procurement Policy Act (41 U.S.C. et seq.) is amended 
by adding at the end the following new section:

``SEC. 29. POST-AWARD DEBRIEFINGS.

    ``(a) Debriefing Guidelines.--The Federal Acquisition Regulation 
shall be revised to include guidelines for the debriefing of 
unsuccessful offerors for any contract for an amount in excess of the 
small purchase threshold which was awarded on a basis other than price 
alone. Such guidelines shall require that such a debriefing--
            ``(1) shall occur if a written request by an unsuccessful 
        offeror for a contract is submitted within 5 days after the 
        date of the award of the contract;
            ``(2) shall be completed within 5 days after the date of 
        the submission of such a request; and
            ``(3) to the maximum extent practicable, shall include at 
        least the following:
                    ``(A) A detailed review of the offeror's proposal 
                in relation to the evaluation factors and subfactors 
                specified in the solicitation for the contract, 
                including identification of any weaknesses and 
                strengths of the proposal, results of any past 
                performance analyses, and cost realism assessment.
                    ``(B) A description of the rationale for the award 
                of the contract.
                    ``(C) The overall evaluated cost and combined 
                technical and cost scores of the awardee and the 
                debriefed offeror, and the technical point scores of 
                the awardee and the debriefed offeror.
                    ``(D) The overall ranking of all offerors.
    ``(b) Information Not Provided.--A debriefing under subsection (a) 
shall not make point-by-point comparisons with other offerors' 
proposals and shall not disclose any information that is not subject to 
disclosure under section 552 of title 5, United States Code, including 
information relating to--
            ``(1) trade secrets;
            ``(2) privileged or confidential manufacturing processes 
        and techniques; and
            ``(3) commercial and financial information that is 
        privileged or confidential, including cost breakdowns, profit, 
        indirect cost rates, and similar information.
    ``(c) Notification of Disclosure.--Each solicitation for contracts 
subject to subsection (a) shall notify participating offerors that the 
categories of information described in subsection (a)(3) may be 
disclosed by the Government in post-award debriefings.''.
    (b) Period for Filing Protest.--
            (1) In general.--Section 3553(d) of title 31, United States 
        Code, is amended by adding at the end the following:
    ``(3)(A) In the case of protest submitted by a person provided a 
debriefing with respect to a contract, paragraph (1) shall be applied 
by substituting for `but within 10 days of the date of the contract 
award' the following: `but before the later of the date that is 10 days 
after the date of the contract award or the date that is 3 working days 
after the date of completion of a debriefing regarding the contract'.
    ``(B) In this paragraph the term `debriefing' means a debriefing 
under the guidelines required under section 29 of the Office of Federal 
Procurement Policy Act.''.
            (2) Brooks automatic data processing act protests.--Section 
        111(f)(3) of the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 749(f)(3)) is amended by adding at the 
        end the following:
    ``(C)(i) In the case of protest filed by a person provided a 
debriefing with respect to a contract, subparagraph (A) shall be 
applied by substituting for `but within 10 days after the contract 
award' the following: `but before the later of the date that is 10 days 
after the date of the contract award or the date that is 3 working days 
after the date of completion of a debriefing regarding the contract'.
    ``(ii) In this subparagraph the term `debriefing' means a 
debriefing under the guidelines required under section 29 of the Office 
of Federal Procurement Policy Act.''.
    (c) Issuance of Revision.--The Federal Acquisition Regulatory 
Council shall issue a final revision of the Federal Acquisition 
Regulation implementing section 29 of the Office of Federal Procurement 
Policy Act, as added by subsection (a), not later than 180 days after 
the date of the enactment of this Act.
    (d) Application.--Section 29 of the Office of Federal Procurement 
Policy Act, as added by subsection (a), shall apply with respect to 
solicitations for contracts issued after the expiration of the 180-day 
period beginning on the date of the enactment of this Act.

SEC. 503. USE OF SMALL PURCHASE PROCEDURES FOR PROCUREMENTS CONDUCTED 
              THROUGH FEDERAL ACQUISITION COMPUTER NETWORK SYSTEMS; 
              IMPLEMENTATION OF SYSTEMS.

    (a) Increase in Small Purchase Threshold.--
            (1) In general.--Section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403), as amended by section 
        122(a), is further amended--
                    (A) by striking paragraph (11) and inserting the 
                following:
            ``(11) the term `small purchase threshold' means--
                    ``(A) $25,000, except as provided in subparagraphs 
                (B) and (C);
                    ``(B) $50,000, in the case of a procurement--
                            ``(i) that is conducted by a procuring 
                        activity that has implemented FACNET system 
                        architectural capabilities in accordance with 
                        the requirements under section 30(f)(1)(A) and 
                        (B)(i); and
                            ``(ii) in which notices of solicitation for 
                        all contracting opportunities are issued 
                        through a FACNET system; or
                    ``(C) $100,000, in the case of a procurement--
                            ``(i) that is conducted by a procuring 
                        activity that has implemented FACNET system 
                        architectural capabilities in accordance with 
                        the requirements under section 30(f)(1)(A) and 
                        (B)(i), (ii), (iii), and (iv); and
                            ``(ii) in which--
                                    ``(I) notices of solicitation for 
                                all contracting opportunities are 
                                issued through a FACNET system,
                                    ``(II) responses to solicitations 
                                and requests for information may be 
                                submitted to the procuring activity 
                                through such system,
                                    ``(III) information pursuant to 
                                those requests is available through 
                                such system,
                                    ``(IV) orders are made through such 
                                system, and
                                    ``(V) public notice of awards is 
                                provided through such system;
        except that the dollar amount in each of subparagraphs (A), 
        (B), and (C) shall be adjusted on October 1 of each year 
        divisible by 5 to the equivalent amount in constant fiscal year 
        1993 dollars (rounded to the nearest $1,000);''
                    (B) by striking the period at the end of paragraph 
                (12) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) the term `FACNET system' means such a system 
        developed in accordance with the FACNET system architecture 
        established by the Administrator under section 30.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on, and apply to solicitations made and 
        orders placed on or after, the expiration of the 60-day period 
        beginning on the date of issuance in final form of revisions to 
        the Federal Acquisition Regulation under subsection (b).
            (3) Interim rule.--Notwithstanding paragraphs (1) and (2), 
        during the 5-year period beginning on the date of the issuance 
        in final form of revisions to the Federal Acquisition 
        Regulation under subsection (b), procuring activities shall 
        continue to report, pursuant to section 19(d) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 417(d)), procurement 
        awards with a dollar value of at least $25,000, but less than 
        $100,000, in conformity with the procedures for the reporting 
        of a contract award in excess of $25,000 in effect on May 24, 
        1993.
    (b) Improved Small Purchase Procedures.--
            (1) Revision of far.--The Federal Acquisition Regulation 
        shall be revised to ensure that--
                    (A) procuring activities of executive agencies 
                comply with the requirements of section 8(a) of the 
                Small Business Act (15 U.S.C. 637(a)) and section 2323 
                of title 10, United States Code, in awarding any 
                contract with a price exceeding $25,000;
                    (B) the authority under part 13.106(a)(1) of the 
                Federal Acquisition Regulation (48 C.F.R. 
                13.106(a)(1)), as in effect on May 19, 1993, to make 
                purchases without securing competitive quotations does 
                not apply to any purchases with a price exceeding 
                $2,500; and
                    (C) procuring activities of executive agencies 
                comply with the requirements of section 15(j) of the 
                Small Business Act (15 U.S.C. 644), relating to the 
                small business reserve, in awarding any contract with a 
                price below the small purchase threshold.
            (2) Notice required regarding oral solicitations.--Section 
        18(a)(1)(B) of the Office of Federal Procurement Policy Act (41 
        U.S.C. 416(a)(1)(B)) is amended in the matter preceding clause 
        (i)--
                    (A) by inserting ``(including orally or by any 
                other means)'' after ``intending to solicit''; and
                    (B) by inserting after ``ten days'' the following: 
                ``before contract award (except for any procurement in 
                which public notice of contract opportunities for the 
                acquisition of property or services by a procuring 
                activity of an executive agency is performed through a 
                FACNET system)''.
            (3) Participation by all responsible small business 
        concerns.--Section 18 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416) is amended by adding at the end the 
        following:
    ``(e) An executive agency intending to solicit offers for a 
contract for which a notice of solicitation is required to be posted 
under subsection (a)(1)(B) shall ensure that all small business 
concerns are permitted to respond to solicitations for the contract 
within the time specified in the solicitations.''.
    (c) Performance Test and Report.--
            (1) Performance test.--The Comptroller General of the 
        United States shall monitor and collect data on the results of 
        the amendments made by subsection (a)(1), to ascertain the 
        effects of the amendments on the participation of small 
        business concerns (including small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals) in procurement awards of less than $100,000 and 
        the benefits and detriments, if any, to the buying activities 
        of the various Executive agencies.
            (2) Data to be collected.--Data collected under paragraph 
        (1) shall include data regarding whether the amendments made by 
        subsection (a)(1) have improved the acquisition process in 
        terms of reduced paperwork, financial or other savings to the 
        Government, and any increase in the number of contractors 
        participating in the contracting process.
            (3) Period.--Data shall be collected for purposes of 
        paragraph (1) during the period beginning with the first full 
        fiscal year quarter after the effective date of the amendments 
        made by subsection (a)(1) and ending September 30, 1996.
            (4) Report.--By March 1, 1997, the Comptroller General of 
        the United States shall report to the Committee on Government 
        Operations of the House of Representatives, the Committee on 
        Governmental Affairs of the Senate, and the Committees on Small 
        Business of the House of Representatives and the Senate on the 
        effects of the increase in the small purchase threshold made by 
        the amendments made by subsection (a)(1).
    (d) Functions of Administrator for Federal Procurement Policy.--
Section 6(d) of the Office of Federal Procurement Policy Act (41 U.S.C. 
405(d)) is amended--
            (1) in paragraph (7) by striking ``and'' after the 
        semicolon at the end; and
            (2) by redesignating paragraph (8) as paragraph (10) and 
        inserting after paragraph (7) the following:
            ``(8) developing policies, in consultation with the 
        Administrator of the Small Business Administration, that ensure 
        that small businesses and small businesses owned and controlled 
        by socially and economically disadvantaged persons are provided 
        with the maximum practicable opportunities to participate in 
        procurements that are conducted below the small purchase 
        threshold;
            ``(9) developing policies that will promote achievement of 
        goals for participation by small businesses and small 
        businesses owned and controlled by socially and economically 
        disadvantaged individuals; and''.
    (e) Implementation of Electronic Data Interchange for Procurement 
Information.--The Office of Federal Procurement Policy Act (41 U.S.C. 
401 et seq.) is further amended by adding after section 29 (as added by 
section 502) the following:

``SEC. 30. ELECTRONIC INTERCHANGE OF PROCUREMENT INFORMATION.

    ``(a) In General.--The Administrator, in consultation with the 
Office of Information and Regulatory Affairs, shall establish a program 
and assign a program manager for, and provide overall direction of 
policy and leadership in, the development, coordination, installation, 
operation, and completion of implementation by executive agencies, by 
not later than 5 years after the date of the enactment of the Federal 
Acquisition Improvement Act of 1993, of a Federal Acquisition Computer 
Network system architecture. Any system developed in accordance with 
this architecture shall be known as a `FACNET system'. The FACNET 
system architecture shall involve enabling technology and procurement 
electronic data interchange transaction sets. The enabling technology 
shall consist of a computer network, supporting data bases, and 
standard interfaces that interconnect Government automated systems to 
the network. The procurement electronic data interchange transaction 
sets shall facilitate the electronic interchange of standard 
procurement information between Government and industry automated 
acquisition systems.
    ``(b) Functions of Administrator of General Services.--The 
Administrator of General Services shall do the following:
            ``(1) Provide technical support for FACNET systems by doing 
        the following:
                    ``(A) Coordinate with the Administrator to 
                facilitate the efficient and widespread implementation 
                of various FACNET systems by executive agencies. This 
                shall include interfacing FACNET systems to other 
                systems, such as the Government bank card and 
                Electronic Funds Transfer payment systems.
                    ``(B) Assist the Director of the National Institute 
                of Standards and Technology in the development and 
                application of appropriate Federal Information 
                Processing Standards.
                    ``(C) Prepare a technical plan for coordinating the 
                design, development, implementation, operation, and 
                maintenance of the FACNET system architecture. The plan 
                shall include roles and responsibilities, major 
                milestones, cost estimates, and performance 
                requirements.
            ``(2) Ensure compliance with section 111 of the Federal 
        Property and Administrative Services Act of 1949 in the 
        implementation of FACNET systems by executive agencies, 
        including by limiting the scope of delegations under subsection 
        (a) of that section.
            ``(3) Evaluate progress by executive agencies in 
        implementing FACNET systems, and recommend changes in that 
        implementation to the program manager assigned by the 
        Administrator under subsection (a).
            ``(4) Submit to the Congress, on the date that is one year 
        after the date of the enactment of the Federal Acquisition 
        Improvement Act of 1993 and on that date in each of the 5 years 
        thereafter, a report on the overall progress by the executive 
        branch of the Government and by each executive agency in 
        implementing the FACNET system architecture.
    ``(c) Implementation of FACNET Systems by Executive Agencies.--
            ``(1) In general.--The head of each executive agency shall 
        cooperate with the Administrator and the Administrator of 
        General Services to implement FACNET systems for the agency.
            ``(2) Designation of agency program manager.--
                    ``(A) Designation.--The head of each executive 
                agency shall designate a program manager to implement 
                FACNET systems for the agency and otherwise implement 
                this section.
                    ``(B) Functions.--A program manger designated under 
                this paragraph for an executive agency shall--
                            ``(i) report directly to the senior 
                        procurement executive designated for the agency 
                        under section 16(4);
                            ``(ii) be responsible for the timely and 
                        cost-effective implementation of the FACNET 
                        system architecture for the agency in a manner 
                        that is responsive to the procurement needs of 
                        the agency, national business needs, and the 
                        public's interest in open government;
                            ``(iii) develop plans for phasing-in the 
                        implementation of FACNET systems for the 
                        procuring activities of the executive agency 
                        and phasing-out local network systems that 
                        perform comparable procurement functions;
                            ``(iv) participate in the interagency 
                        development of standard procurement electronic 
                        data interchange transaction sets; and
                            ``(v) in carrying out this section, comply 
                        with guidelines issued by the Administrator 
                        under this section and program directives 
                        issued by the Administrator of General Services 
                        under section 111 of the Federal Property and 
                        Administrative Services Act of 1949.
    ``(d) Functions of National Institute of Standards and 
Technology.--The Director of the National Institute of Standards and 
Technology shall--
            ``(1) ensure that the FACNET system architecture complies 
        with Federal Information Processing Standards;
            ``(2) issue additional standards for the FACNET system 
        architecture as necessary; and
            ``(3) establish tests to facilitate the aims of this 
        section and support policies established by the Administrator 
        under this section.
    ``(e) Functions of Small Business Administration.--The 
Administrator of the Small Business Administration shall--
            ``(1) develop plans to coordinate and promote the use of 
        FACNET systems by small businesses, that incorporate outreach 
        efforts by the Small Business Administration, agency Offices of 
        Small and Disadvantaged Business and Utilization, Small 
        Business Development Centers, and other appropriate 
        organizations; and
            ``(2) inform and provide consistent and comprehensive 
        FACNET system training for small businesses.
    ``(f) FACNET System Compatibility Standards.--
            ``(1) In general.--The Administrator, in consultation with 
        the Office of Information and Regulatory Affairs, the 
        Administrator of General Services, the Administrator of the 
        Small Business Administration, and the Director of the National 
        Institute of Standards and Technology, shall prescribe policies 
        for ensuring convenient and universal access to FACNET systems, 
        and shall develop a set of system compatibility standards for 
        each FACNET system interface and FACNET system support data 
        base. The system compatibility standards shall specify the 
        functional capabilities of each FACNET system interface, and 
        the minimum set of data elements of each FACNET system support 
        data base. The system compatibility standards shall ensure that 
        the following FACNET system functions are satisfactorily 
        performed by each executive agency, executive agency component, 
        or procuring activity:
                    ``(A) Provision of widespread public notice of 
                solicitations for contract opportunities issued by the 
                agency, component, or activity and of orders to be made 
                by the agency, component, or activity below the small 
                purchase threshold.
                    ``(B) Allowing private users to electronically--
                            ``(i) selectively access and review 
                        solicitations issued by the agency, component, 
                        or activity;
                            ``(ii) respond to solicitations issued by 
                        the agency, component, or activity;
                            ``(iii) receive orders from the agency, 
                        component, or activity; and
                            ``(iv) access information on contract 
                        awards made by the agency, component, or 
                        activity.
            ``(2) Binding standards.--The FACNET system interface and 
        FACNET system support data base of each procuring activity 
        shall comply with the system compatibility standards developed 
        under paragraph (1), except to the extent the Administrator has 
        waived application of such standards to the activity under 
        paragraph (3).
            ``(3) Waivers.--
                    ``(A) In general.--The Administrator may, in 
                writing, waive the application of any system 
                compatibility standard to a procuring activity if the 
                Administrator--
                            ``(i) determines that compliance with the 
                        standard by the procuring activity would 
                        adversely affect the accomplishment of the 
                        mission of the activity or cause a major 
                        adverse financial impact on the activity which 
                        is not offset by Government-wide savings; and
                            ``(ii) approves a plan, developed by the 
                        procuring activity, for complying with the 
                        standard by not later than 1 year after the 
                        issuance of the waiver.
                    ``(B) Authority non-delegable.--The authority of 
                the Administrator to issue waivers under this paragraph 
                may not be delegated.
                    ``(C) Request for waiver.--A waiver under this 
                paragraph may be issued by the Administrator only after 
                receipt of a request for the waiver submitted by the 
                program manager designated under subsection (c)(2)(A) 
                for the procuring activity for which the waiver is 
                requested.
                    ``(D) Notice of waiver.--The Administrator shall 
                promptly submit a notice of each waiver under this 
                paragraph to the Committee on Government Operations of 
                the House of Representatives and the Committee on 
                Governmental Affairs of the Senate, and promptly 
                publish the notice in the Federal Register.''.
    (f) Technical Corrections.--
            (1) Section 18(d) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416) is amended by striking ``(e)'' in 
        the first sentence and inserting ``(a)''.
            (2) Section 18(a)(1) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416(a)(1)) is amended--
                    (A) in subparagraph (A) in the matter following 
                clause (ii) by striking ``notice'' and inserting 
                ``notice of solicitation''; and
                    (B) in subparagraph (B) in the matter preceding 
                clause (i) by striking ``a notice of solicitation 
                described in subsection (f)'' and inserting ``a notice 
                of solicitation described in subsection (b)''.

SEC. 504. TEST PROGRAM.

    (a) In General.--The Administrator for Federal Procurement Policy 
(in this section referred to as the ``Administrator'') may conduct a 
program of tests of alternative and innovative procurement procedures. 
To the extent consistent with this section, such program shall be 
conducted consistent with section 15 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 413). No more than 6 such tests shall 
be conducted under this authority.
    (b) Designation of Agencies.--Each test conducted pursuant to 
subsection (a) shall be limited to not more than 2 specific contracting 
activities in an agency designated by the Administrator. Each agency so 
designated shall select the contracting activities participating in the 
test with the approval of the Administrator and shall designate a 
procurement testing official who shall be responsible for the conduct 
and evaluation of tests within that agency.
    (c) Test Requirements.--Tests conducted under subsection (a)--
            (1) shall be developed and structured by the Administrator 
        or by the agency senior procurement executives designated 
        pursuant to section 16(4) of the Office of Federal Procurement 
        Policy Act, as redesignated by section 111 of this Act, in 
        close coordination with the Administrator;
            (2) shall be for a period of not greater than 4 years;
            (3) shall be limited to specific programs of agencies or 
        specific acquisitions;
            (4) may not include any test with a total estimated life-
        cycle cost to the Government greater than $100,000,000;
            (5) shall include--
                    (A) a test by the National Aeronautics and Space 
                Administration of simplified procurement procedures for 
                acquisitions with an estimated annual total obligation 
                of funds of $500,000 or less;
                    (B) a test by the General Services Administration 
                of expedited methods for procuring automatic data 
                processing equipment commodities;
                    (C) a test by at least one agency of streamlined 
                procedures for competition among interested sources 
                participating in the tailoring of a solicitation for 
                the purchase of commercial products; and
                    (D) a test of commercial item acquisition 
                procedures in which all evaluation factors and 
                subfactors on which a contract award will be based are 
                disclosed in the solicitation, identifying both the 
                absolute and relative weight for each factor and each 
                subfactor; and
            (6) shall not include any procurement the cost of which is 
        expected to exceed $5,000,000 (including options).
    (d) Limitation on Total Value of Contracts Under Program.--
            (1) Limitation.--The Administrator shall ensure that the 
        total amount obligated under contracts awarded pursuant to the 
        program under this section does not exceed Sec. $600,000,000.
            (2) Monitoring.--The Administrator shall monitor the value 
        of contracts awarded pursuant to the program under this 
        section.
            (3) Prohibition on awards in excess of limit.--No contract 
        may be awarded under the program under this section if the 
        award of the contract would result in obligation of more than 
        $600,000,000 under contracts under this section.
    (e) Procedures Authorized.--Tests conducted under this section may 
include tests of any of the following procedures:
            (1) Publication of agency needs prior to drafting of a 
        solicitation.
            (2) Screening of sources and competition among capable 
        vendors.
            (3) Issuance of draft solicitations for comment.
            (4) Streamlined solicitations, with a minimized number of 
        evaluation factors and information required from vendors, 
        abbreviated periods for submission of offers, and page 
        limitations on offers.
            (5) Limitation of source selection factors to--
                    (A) cost to the Government;
                    (B) past experience; and
                    (C) quality of the contents of the offer.
            (6) Evaluation of proposals by small teams of highly 
        qualified people, limited to 30 days.
            (7) Competition among sources of preevaluated products.
            (8) Alternative notice and publication requirements.
            (9) A process in which--
                    (A) the competitive process is initiated by a 
                notice in the Commerce Business Daily synopsizing the 
                needs of the executive agency conducting the test, in 
                functional and performance terms, with other 
                specifications provided for guidance only;
                    (B) the notice invites interested sources to submit 
                information or samples showing their product's 
                suitability for those needs (with price quotations) or, 
                if appropriate, showing the sources' technical 
                capability, past performance, product supportability, 
                or other qualifications (with appropriate consideration 
                to rates and other cost-related factors);
                    (C) contracting officials develop a request for 
                proposals (including appropriate specifications and 
                evaluation criteria) after reviewing the submittals 
                made by interested sources and, if the officials 
                determine necessary, after consultation with those 
                sources; and
                    (D) the contract is awarded after a streamlined 
                competition limited to all sources that timely provided 
                product information in response to the notice or, if 
                appropriate, to those sources determined most capable 
                based on those qualification-based factors included in 
                an invitation to submit information pursuant to 
                subparagraph (B).
    (f) Test Plan.--Not later than 60 days before implementing any test 
program under this section, the Administrator shall--
            (1) provide a detailed test plan, including lists of any 
        regulations that are to be waived, and any written 
        determination under subsection (f)(1)(B) to the Committee on 
        Government Operations of the House of Representatives and the 
        Committee on Governmental Affairs of the Senate;
            (2) provide a copy of the plan to the appropriate 
        authorizing committees of the House of Representatives and the 
        Senate; and
            (3) publish the plan in the Federal Register and provide an 
        opportunity for public comment.
    (g) Waiver of Procurement Regulations.--
            (1) In general.--For purposes of a test conducted under 
        subsection (a), the Administrator may waive--
                    (A) any provision of the Federal Acquisition 
                Regulation that is not required by statute; and
                    (B) any provision of the Federal Acquisition 
                Regulation that is required by a provision of law 
                described in paragraph (2), the waiver of which the 
                Administrator determines in writing to be necessary to 
                conduct any test of any of the 9 procedures described 
                in subsection (e).
            (2) Provisions of law described.--The provisions of law 
        referred to in paragraph (1) are the following:
                    (A) Section 3709 of the Revised Statutes (41 U.S.C. 
                5).
                    (B) Section 3710 of the Revised Statutes (41 U.S.C. 
                8).
                    (C) Section 3735 of the Revised Statutes (41 U.S.C. 
                13).
                    (D) Section 310 of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 260).
                    (E) Section 303 of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253).
                    (F) Section 2304 of title 10, United States Code.
                    (G) Section 303A of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253a).
                    (H) Section 303B of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253b).
                    (I) Section 2305 of title 10, United States Code.
                    (J) Section 303C of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253c).
                    (K) Section 2319 of title 10, United States Code.
                    (L) Section 4(6) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 403(6)).
                    (M) Section 18 of the Office of Federal Procurement 
                Policy Act (41 U.S.C. 416).
                    (N) Sections 8(e), (f), and (g) of the Small 
                Business Act (15 U.S.C. 637(e), (f), and (g)).
    (h) Reports and Reviews.--
            (1) Administrator.--The Administrator shall report to the 
        Congress on the results of each test conducted under subsection 
        (a).
            (2) Comptroller general.--The Comptroller General of the 
        United States shall review each test conducted under subsection 
        (a) and report to the Congress on each test and shall report 
        annually to the Congress on the conduct of and results of all 
        tests conducted under subsection (a).
    (i) Expiration of Authority.--The authority to conduct tests under 
this section and to award contracts under such tests shall expire on 
October 1, 1997. Contracts entered prior to October 1, 1997, pursuant 
to a test shall remain in effect, notwithstanding the expiration of the 
authority to conduct the test under this section.

SEC. 505. SINGLE AUDIT UNDER BROOKS ARCHITECT-ENGINEERS ACT.

    Section 904 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 544) is amended by adding at the end the following:
    ``(d) An agency may not perform any pre-award audit to evaluate 
proposed costs under any contract, subcontract, or modification awarded 
or made in accordance with this title in any case in which the 
contracting officer determines that the objectives of the audit 
reasonably can be met by accepting the results of an audit conducted by 
a Federal Government audit agency within the previous year.''.

SEC. 506. BUY AMERICAN REQUIREMENT FOR FEDERAL AGENCIES.

    (a) Applicability of Buy American Requirements.--The Administrator 
of General Services shall ensure that the requirements of the Buy 
American Act apply to all procurements, consistent with international 
obligations, made with funds provided pursuant to the authorization 
contained in the amendment made by section 601.
    (b) Reports on Procurements From Foreign Entities.--The 
Administrator of General Services shall submit to the Congress a report 
on the amount of procurements from foreign entities made in fiscal 
years 1994, 1995, and 1996 with funds provided pursuant to the 
authorization contained in the amendment made by section 601. Such 
report shall separately indicate the dollar value of items procured 
with such funds for which the Buy American Act was waived pursuant to 
the Trade Agreement Act of 1979 or any international agreement to which 
the United States is a party.
    (c) Prohibition of Contracts With Persons Falsely Labeling Products 
as Made in America.--If the Administrator of General Services 
determines that a person has been convicted of intentionally affixing a 
label bearing a ``Made in America'' inscription to any product sold in 
or shipped to the United States that is not made in America, the 
Administrator shall determine, not later than 90 days after determining 
that the person has been so convicted, whether the person should be 
debarred from contracting with the General Services Administration. If 
the Administrator determines that the person should not be debarred, 
the Administrator shall submit to the Congress a report on such 
determination not later than 30 days after the determination is made.
    (d) Definitions.--For purposes of this section--
            (1) the term ``Buy American Act'' means title III of the 
        Act entitled ``An Act making appropriations for the Treasury 
        and Post Office Departments for the fiscal year ending June 30, 
        1934, and for other purposes'', approved March 3, 1933 (41 
        U.S.C. 10a et seq.); and
            (2) the term ``debar'' means to exclude, pursuant to 
        established administrative procedures, from Government 
        contracting and subcontracting for a specified period of time 
        commensurate with the seriousness of the failure or offense or 
        the inadequacy of performance.

SEC. 507. STUDY OF PARTICIPATION BY CERTAIN SMALL BUSINESSES IN FEDERAL 
              PROCUREMENT.

    (a) Study.--The Administrator for Federal Procurement Policy shall 
conduct a study of--
            (1) the degree of participation by small businesses owned 
        and controlled by socially and economically disadvantaged 
        individuals in procurements conducted by executive agencies, 
        other than agencies in the Department of Defense; and
            (2) the extent of compliance by those executive agencies 
        with the goals for participation by such businesses required by 
        Office of Federal Procurement Policy policy letter 91-1, 
        relating to Government-wide small business and small 
        disadvantaged business goals for procurement contracts.
    (b) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Administrator for Federal Procurement Policy 
shall submit a report on the study required under subsection (a) to the 
Committee on Government Operations and the Committee on Small Business 
of the House of Representatives, and to the Committee on Governmental 
Affairs and the Committee on Small Business of the Senate. The report 
shall include recommendations to facilitate the provision of authority 
to executive agencies, other than agencies in the Department of 
Defense, to conduct procurement set asides for small businesses owned 
and controlled by socially and economically disadvantaged individuals, 
and on improved outreach programs to increase the participation by such 
businesses in procurements conducted by those executive agencies.

    TITLE VI--PROVISIONS RELATING TO GENERAL SERVICES ADMINISTRATION

SEC. 601. AUTHORIZATION OF FUNCTIONS AND ACTIVITIES UNDER THE FEDERAL 
              PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949.

    Section 603(a) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 475) is amended to read as follows:
    ``(a) There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this Act for each fiscal year 
through the fiscal year ending on September 30, 1996, including payment 
in advance, when authorized by the Administrator, for library 
memberships in societies whose publications are available to members 
only, or to members at a price lower than that charged to the general 
public. Nothing in this subsection shall affect authorizations of 
appropriations or appropriations set forth elsewhere in this Act.''.

SEC. 602. REQUIREMENTS FOR APPOINTMENTS TO SENIOR POSITIONS IN GENERAL 
              SERVICES ADMINISTRATION.

    (a) In General.--Section 101 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 751) is amended by 
redesignating subsection (f) as subsection (g) and by inserting after 
subsection (e) the following new subsection:
    ``(f) A person appointed as the Deputy Administrator of General 
Services or as the head of a principal organizational unit of the 
General Services Administration shall, in addition to any other minimum 
qualifications, have significant previous management experience in 
government or the private sector in an area or areas directly related 
to the functions and responsibilities of the position to which that 
person is appointed.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
not apply to any person in a position affected by such amendments on 
the date of the enactment of this Act.

SEC. 603. TERMINATION OF REQUIREMENT.

    The laws of the United States are amended to read as if section 630 
of Public Law 102-393 had not been enacted.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Acquisition Improvement Act 
of 1994''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  Part I--Armed Services Acquisitions

                  subpart a--competition requirements
Sec. 1001. References to Federal Acquisition Regulation.
Sec. 1002. Exclusion of particular sources.
Sec. 1003. Exception to use of competitive procedures for continued 
                            occupancy of leased space.
Sec. 1004. Approval for use of noncompetitive procedures.
Sec. 100subpart b--planning, solicitation, evaluation, and award
Sec. 1011. Source selection factors.
Sec. 1012. Solicitation provision regarding evaluation of purchase 
                            options.
Sec. 1013. Prompt notice of award.
Sec. 1014. Post-award debriefings.
Sec. 1015. Protest file.
Sec. 1016. Award of multiple contracts.
Sec. 1017. Consideration of contractor past performance.
Sec. 1018. Discouragesubpart c--kinds of contractsclauses.
Sec. 1021. Repeal of requirement for Secretarial determination 
                            regarding use of cost type or incentive 
     subpart d--miscellaneous provisions for the encouragement of 
                              competition
Sec. 1031. Repeal of requirement for annual report by advocates for 
                            competition.

                 Part II--Civilian Agency Acquisitions

                  subpart a--competition requirements
Sec. 1051. References to Federal Acquisition Regulation.
Sec. 1052. Exclusion of particular sources.
Sec. 1053. Exception to use of competitive procedures for continued 
                            occupancy of leased space.
Sec. 105subpart b--planning, solicitation, evaluation, and award
Sec. 1061. Solicitation, evaluation, and award.
Sec. 1062. Solicitation provision regarding evaluation of purchase 
                            options.
Sec. 1063. Prompt notice of award.
Sec. 1064. Post-award debriefings.
Sec. 1065. Protest file.
Sec. 1066. Award of multiple contracts.
Sec. 1067. Discouragesubpart c--kinds of contractsclauses.
Sec. 1071. Repeal of agency head determination regarding use of cost 
                            type or incentive contract.
Sec. 1072. Multiyear contracts.

                    Part III--Acquisitions Generally

Sec. 1091. Repeal of requirement for annual report on competition.

                   Subtitle B--Truth in Negotiations

                  Part I--Armed Services Acquisitions

Sec. 1201. Stabilization of dollar threshold of applicability.
Sec. 1202. Exceptions to cost or pricing data requirements.
Sec. 1203. Right of United States to examine contractor records.
Sec. 1204. Consistency of time references.
Sec. 1205. Repeal of superseded provision.

                 Part II--Civilian Agency Acquisitions

Sec. 1251. Revision of civilian agency provisions to ensure uniform 
                            treatment of cost or pricing data.
Sec. 1252. Repeal of obsolete provision.

                  Subtitle C--Research and Development

Sec. 1301.  Cooperative agreements for advanced research.
Sec. 1302. Competition requirement for awards of grants and contracts 
                            to colleges and universities.

                    Subtitle D--Procurement Protests

              Part I--Protests to the Comptroller General

Sec. 1401. Review of protests and effect on contracts pending decision.
Sec. 1402. Decisions on protests.
Sec. 1403. Regulations.

     Part II--Protests in Procurements of Automatic Data Processing

Sec. 1431. Periods for certain actions.
Sec. 1432. Dismissals of frivolous protests and recovery of costs.
Sec. 1433. Award of costs.
Sec. 1434. Dismissal agreements.
Sec. 1435. Matters to be covered in regulations.
Sec. 1436. Oversight of acquisition of automatic data processing 
                            equipment by Federal agencies.

           Subtitle E--Policy, Definitions, and Other Matters

                  Part I--Armed Services Acquisitions

Sec. 1501. Congressional defense procurement policy.
Sec. 1502. Definitions.
Sec. 1503. Delegation of procurement functions.
Sec. 1504. Determinations and decisions.
Sec. 1505. Restrictions on undefinitized contractual actions.
Sec. 1506. Repeal of requirement relating to production special tooling 
                            and production special test equipment.
Sec. 1507. Regulations for bids.

                 Part II--Civilian Agency Acquisitions

Sec. 1551. Definitions.
Sec. 1552. Delegation of procurement functions.
Sec. 1553. Determinations and decisions.
Sec. 1554. Restrictions on undefinitized contractual actions.

                   TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                  Part I--Armed Services Acquisitions

Sec. 2001. Contract financing.
Sec. 2002. Repeal of vouchering procedures section.

                 Part II--Civilian Agency Acquisitions

Sec. 2051. Contract financing.

                    Part III--Acquisitions Generally

Sec. 2061. Interest penalty on contract close-out lag-time.

                      Subtitle B--Cost Principles

                  Part I--Armed Services Acquisitions

Sec. 2101. Allowable contract costs.
Sec. 2102. Repeal of contract profit controls during emergency periods.

                 Part II--Civilian Agency Acquisitions

Sec. 2151. Allowable contract costs.

                    Part III--Acquisitions Generally

Sec. 2161. Travel expenses of Government contractors.

                Subtitle C--Audit and Access to Records

                  Part I--Armed Services Acquisitions

Sec. 2201. Consolidation and revision of authority to examine records 
                            of contractors.

                 Part II--Civilian Agency Acquisitions

Sec. 2251. Authority to examine records of contractors.

                 Subtitle D--Cost Accounting Standards

Sec. 2301. Repeal of obsolete deadline regarding procedural regulations 
                            for the Cost Accounting Standards Board.

 Subtitle E--Administration of Contract Provisions Relating to Price, 
                     Delivery, and Product Quality

Sec. 2401. Clarification of provision relating to quality control of 
                            certain spare parts.
Sec. 2402. Contractor guarantees regarding weapon systems.

                    Subtitle F--Claims and Disputes

Sec. 2501. Certification of contract claims.

         TITLE III--MAJOR SYSTEMS AND SERVICE SPECIFIC STATUTES

                   Subtitle A--Major Systems Statutes

Sec. 3001. Weapon development and procurement schedules.
Sec. 3002. Selected Acquisition Report requirement.
Sec. 3003. Unit cost report requirement.
Sec. 3004. Requirement for independent cost estimates and manpower 
                            estimates before development or production.
Sec. 3005. Baseline description.
Sec. 3006. Repeal of requirement for competitive prototyping in major 
                            programs.
Sec. 3007. Repeal of requirement for competitive alternative sources in 
                            major programs.

                      Subtitle B--Testing Statutes

Sec. 3011. Authorization of less than full-up testing.
Sec. 3012. Limitation on quantities to be procured for low-rate initial 
                            production.
Sec. 3013. Operational test and evaluation of defense acquisition 
                            programs.

                  Subtitle C--Civil Reserve Air Fleet

Sec. 3021. Definition of contractor.
Sec. 3022. Consolidation of provisions relating to contractual 
                            commitment of aircraft.
Sec. 3023. Use of military installations by contractors.

                       Subtitle D--Miscellaneous

Sec. 3051. Extension to Department of Defense generally of provision 
                            relating to manufacture at factories and 
                            arsenals.
Sec. 3052. Codification of accounting requirement for contracted 
                            advisory and assistance services.
Sec. 3053. Regulations on procurement, production, warehousing, and 
                            supply distribution functions.
Sec. 3054. Repeal of requirements regarding product evaluation 
                            activities.
Sec. 3055. Codification and revision of limitation on lease of vessels, 
                            aircraft, and vehicles.
Sec. 3056. Repeal of application of Public Contracts Act to certain 
                            naval vessel contracts.

  TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL 
                    BUSINESS, AND MISCELLANEOUS LAWS

              Subtitle A--Simplified Acquisition Threshold

                   Part I--Establishment of Threshold

Sec. 4001. Establishment of simplified acquisition threshold.
Sec. 4002. Federal Acquisition Computer Network.
Sec. 4003. Implementation in armed services.
Sec. 4004. Implementation in civilian agencies.

                 Part II--Simplification of Procedures

Sec. 4011. Small business provisions.
Sec. 4012. Procedures for purchases below micro-purchase threshold.
Sec. 4013. Procurement notice.
Sec. 4014. GAO test and report on performance of simplified acquisition 
                            threshold.

  Part III--Inapplicability of Laws to Acquisitions Not in Excess of 
                    Simplified Acquisition Threshold

                          subpart a--generally
Sec. 4021. Inapplicability of future enacted procurement laws to 
                            contracts not exceeding the simplified 
                 subpart b--armed services acquisitions
Sec. 4031. Inapplicability of certain provisions of law.
Sec. 4032. Conforming amendments relating to inapplicability of certain 
                subpart c--civilian agency acquisitions
Sec. 4041. Inapplicability of certain provisions of law.
Sec. 4042. Conforming amendments relating to inapplicability of certain 
                   subpart d--acquisitions generally
Sec. 4051. Conformance of certain procurement integrity requirements.
Sec. 4052. Inapplicability of the Drug-Free Workplace Act of 1988.

                     Part IV--Conforming Amendments

Sec. 4071. Armed services acquisitions.
Sec. 4072. Civilian agency acquisitions.
Sec. 4073. Office of Federal Procurement Policy Act.
Sec. 4074. Small Business Act.

                    Part V--Revision of Regulations

Sec. 4081. Revision required.

           Subtitle B--Socioeconomic and Small Business Laws

Sec. 4101. Payment protections for subcontractors and suppliers.
Sec. 4102. Small business procurement advisory council.

               Subtitle C--Miscellaneous Acquisition Laws

Sec. 4151. Restriction on use of noncompetitive procedures for 
                            procurement from a specified source.
Sec. 4152. Repeal of obsolete provision.

                     TITLE V--STANDARDS OF CONDUCT

Sec. 5001. Contracting functions performed by Federal personnel.
Sec. 5002. Repeal of executed requirement for study and report.
Sec. 5003. Waiting period for significant changes proposed for 
                            acquisition regulations.
Sec. 5004. Repeal of superseded and obsolete laws.

                TITLE VI--DEFENSE TRADE AND COOPERATION

Sec. 6001. Exception to Buy American Act for micro-purchases.
Sec. 6002. Policy on purchase of foreign goods.
Sec. 6003. Consolidation of limitations on procurement of goods other 
                            than American goods.
Sec. 6004. International cooperative agreements.
Sec. 6005. Miscellaneous repeals.

                      TITLE VII--COMMERCIAL ITEMS

                Subtitle A--Armed Services Acquisitions

Sec. 7001. Establishment of new chapter in title 10.
Sec. 7002. Definitions.
Sec. 7003. Preference for acquisition of commercial items.
Sec. 7004. Pricing documentation for commercial items.
Sec. 7005. Regulations on acquisition of commercial items.
Sec. 7006. Principle of construction with future laws.
Sec. 7007. Inapplicability of certain provisions of law.
Sec. 7008. Conforming amendments relating to inapplicability of certain 
                            provisions of law.

                Subtitle B--Civilian Agency Acquisitions

Sec. 7011. Definitions.
Sec. 7012. Preference for acquisition of commercial items.
Sec. 7013. Pricing documentation for commercial items.
Sec. 7014. Regulations on acquisition of commercial items.
Sec. 7015. Principle of construction with future laws.
Sec. 7016. Inapplicability of certain provisions of law.
Sec. 7017. Conforming amendments relating to inapplicability of certain 
                            provisions of law.

                   Subtitle C--Acquisitions Generally

Sec. 7021. Conforming amendment relating to inapplicability of certain 
                            provisions of law.
Sec. 7022. Flexible deadlines for submission of offers of commercial 
                            items.
Sec. 7023. Additional responsibilities for advocates for competition.
Sec. 7024. Provisions not affected.
Sec. 7025. Comptroller General review of Federal government use of 
                            market research.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 8001. Contract goal for small disadvantaged businesses and certain 
                            institutions of higher education.
Sec. 8002. Education and training.
Sec. 8003. Department of Defense acquisition of intellectual property 
                            rights.
Sec. 8004. Cooperative purchasing.
Sec. 8005. Sense of Congress on negotiated rulemaking.
Sec. 8006. Extension of defense acquisition workforce policies 
                            Government-wide.
Sec. 8007. Vendor and employee excellence awards.
Sec. 8008. Department of Defense review of antitrust cases with 
                            national security implications.
Sec. 8009. Technical and clerical amendments.

               TITLE IX--EFFECTIVE DATES AND REGULATIONS

Sec. 9001. Effective dates.
Sec. 9002. Regulations.

                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  PART I--ARMED SERVICES ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1001. REFERENCES TO FEDERAL ACQUISITION REGULATION.

    Section 2304 of title 10, United States Code, is amended--
            (1) in subsection (a)(1)(A), by striking out 
        ``modifications'' and all that follows through ``note)'' and 
        inserting in lieu thereof ``Federal Acquisition Regulation''; 
        and
            (2) in subsection (g)(1), by striking out ``regulations 
        modified'' and all that follows through ``note)'' and inserting 
        in lieu thereof ``Federal Acquisition Regulation''.

SEC. 1002. EXCLUSION OF PARTICULAR SOURCES.

    (a) Prohibition on Use of Classes of Purchases or Contracts.--
Section 2304(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The determination required of the head of an agency in 
paragraph (1) may not be made for a class of purchases or contracts.''; 
and
            (3) in paragraph (4), as redesignated by paragraph (1), by 
        striking out ``paragraphs (1) and (2)'' and inserting in lieu 
        thereof ``paragraphs (1) and (3)''.
    (b) Additional Justification To Exclude Particular Source.--Section 
2304(b)(1) of such title is amended--
            (1) by striking out ``or'' at the end of subparagraph (B);
            (2) by striking out the period at the end of subparagraph 
        (C) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) would ensure a continuous and reliable source; 
        satisfy a critical need for health, safety, or other emergency 
        supplies; or satisfy projected needs resulting from a history 
        of high demand for the supply or service.''.

SEC. 1003. EXCEPTION TO USE OF COMPETITIVE PROCEDURES FOR CONTINUED 
              OCCUPANCY OF LEASED SPACE.

    Section 2304(d)(1) of title 10, United States Code, is amended--
            (1) by striking out ``and'' at the end of subparagraph (A);
            (2) by striking out the period at the end of subparagraph 
        (B) and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(C) in the case of a follow-on contract to acquire 
        leasehold interests in real property providing for the 
        continued occupancy by Federal agencies of space in buildings, 
        such space may be deemed to be available only from the 
        incumbent lessor and may be acquired through procedures other 
        than competitive procedures if a determination is made that (i) 
        the occupant agencies have a continuing need for the space, 
        (ii) the space meets the needs of the agencies, and (iii) the 
        incumbent lessor is willing to continue to provide the space at 
        a fair market price as established by the Government based on a 
        market survey or an appraisal conducted in accordance with 
        generally accepted real property appraisal procedures.''.

SEC. 1004. APPROVAL FOR USE OF NONCOMPETITIVE PROCEDURES.

    Section 2304(f)(1)(B)(i) of title 10, United States Code, is 
amended by inserting before the semicolon at the end the following: 
``or by an official referred to in clause (ii), (iii), or (iv)''.

SEC. 1005. CONTRACTS FOR PROFESSIONAL AND TECHNICAL SERVICES.

    (a) Amendment.--Section 2304(j)(4) of title 10, United States Code, 
is amended--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) The Secretary of Defense may waive the limitation in 
subparagraph (A) to the extent the Secretary considers the use of 
master agreements necessary in order to further the policy set forth in 
section 2331(a) of this title. During any fiscal year, such a waiver 
may not increase the total value of task orders under master agreements 
of a contracting activity by more than 20 percent of the value of all 
contracts for advisory and assistance services awarded by that 
contracting activity during fiscal year 1989.''.
    (b) Conforming Repeal.--Subsection (c) of section 2331 of title 10, 
United States Code, is repealed.

        Subpart B--Planning, Solicitation, Evaluation, and Award

SEC. 1011. SOURCE SELECTION FACTORS.

    Section 2305(a) of title 10, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(i), by striking out 
                ``nonprice-related factors)'' and inserting in lieu 
                thereof ``nonprice-related factors and significant 
                subfactors)''; and
                    (B) in subparagraph (B)(ii), by striking out 
                subclause (I) and inserting in lieu thereof the 
                following:
                    ``(I) either a statement that the proposals are 
                intended to be evaluated with, and award made after, 
                discussions with the offerors, or a statement that the 
                proposals are intended to be evaluated, and award made, 
                without discussions with the offerors (other than 
                discussions conducted for the purpose of minor 
                clarification) unless discussions are determined to be 
                necessary; and''; and
            (2) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
    ``(3)(A) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, the head of an agency 
shall clearly establish the relative importance assigned to the 
evaluation factors and significant subfactors, including cost or price 
and the quality of the product or services to be provided (including 
technical capability, management capability, and prior experience of 
the offeror).
    ``(B) Nothing in this paragraph prohibits an agency from--
            ``(i) providing additional information in a solicitation, 
        including numeric weights for all evaluation factors (and 
        significant subfactors); or
            ``(ii) stating in a solicitation that award will be made to 
        the offeror that meets the solicitation's mandatory 
        requirements at the lowest price or cost.''.

SEC. 1012. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE 
              OPTIONS.

    Section 2305(a) of title 10, United States Code, as amended by 
section 1011, is further amended by adding at the end the following new 
paragraph:
    ``(4) The head of an agency, in issuing a solicitation for a 
contract to be awarded using sealed bid procedures, may not include in 
such solicitation a clause providing for the evaluation of prices under 
the contract for options to purchase additional supplies or services 
under the contract unless the head of the agency has determined that 
there is a reasonable likelihood that the options will be exercised.''.

SEC. 1013. PROMPT NOTICE OF AWARD.

    (a) Sealed Bid Procedures.--Section 2305(b) of title 10, United 
States Code, is amended by adding at the end of paragraph (3) the 
following: ``Within 3 working days after the date of contract award, 
the head of the agency shall notify, in writing or by electronic means, 
all offerors not awarded the contract that the contract has been 
awarded.''.
    (b) Competitive Proposals Procedures.--Such section is further 
amended in the second sentence of paragraph (4)(B) by striking out 
``shall promptly notify'' and inserting in lieu thereof ``, within 3 
working days after the date of contract award, shall notify, in writing 
or by electronic means,''.

SEC. 1014. POST-AWARD DEBRIEFINGS.

    Section 2305(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5)(A) When a contract is awarded by an agency on the basis of 
competitive proposals, an unsuccessful offeror, upon written request 
received by the agency within 3 working days after the date of receipt 
of notification of the contract award, shall be debriefed and furnished 
the basis for the selection decision and contract award. An employee of 
the agency shall debrief the offeror within, to the maximum extent 
practicable, 4 working days after receipt of the request by the agency.
    ``(B) Such debriefing shall include, at a minimum--
            ``(i) the agency's evaluation of the significant weak or 
        deficient factors in the offeror's offer;
            ``(ii) the overall evaluated cost of the offer of the 
        contractor awarded the contract and the overall evaluated cost 
        of the offer of the debriefed offeror;
            ``(iii) the overall ranking of all offers and the total 
        technical and cost scores of all offers;
            ``(iv) a summary of the rationale for the award;
            ``(v) in the case of an offer by the debriefed offeror that 
        includes a commercial end item, the make and model (or 
        equivalent description) of the item included in the offer of 
        the contractor awarded the contract; and
            ``(vi) reasonable responses to questions posed by the 
        debriefed offeror as to whether source selection procedures set 
        forth in the solicitation, applicable regulations, and other 
        applicable authorities were followed by the agency.
    ``(C) The debriefing shall not include point-by-point comparisons 
of the debriefed offeror's offer with other offers and shall not 
disclose any information that is exempt from disclosure under section 
552 of title 5.
    ``(D) Each solicitation for competitive proposals shall include a 
statement that information described in subparagraph (B) may be 
disclosed in post-award debriefings.
    ``(E) If, within one year after the date of the contract award and 
as a result of a successful procurement protest or otherwise, the 
agency seeks to fulfill the same requirement under the contract on the 
basis of the best and final offers considered in the awarding of that 
contract, the agency shall make available to offerors--
            ``(i) all information provided in debriefings under this 
        paragraph regarding the offer of the contractor awarded the 
        contract; and
            ``(ii) all comparable information with respect to the 
        original offerors.
    ``(F) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 1015. PROTEST FILE.

    Section 2305 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e)(1) If, in the case of a solicitation for a contract issued 
by, or an award or proposed award of a contract by, the head of an 
agency, a protest is filed pursuant to the procedures in subchapter V 
of chapter 35 of title 31 and an actual or prospective offeror so 
requests, a file of the protest shall be established by the contracting 
activity and reasonable access shall be provided to actual or 
prospective offerors.
    ``(2) A file established pursuant to paragraph (1) shall contain 
such information as would ordinarily be releasable under section 552 of 
title 5 (commonly referred to as the `Freedom of Information Act').
    ``(3) Regulations implementing this subsection shall be consistent 
with the regulations regarding the preparation and submission of an 
agency's protest file (the so-called `rule 4 file') for protests to the 
General Services Board of Contract Appeals under the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.).''.

SEC. 1016. AWARD OF MULTIPLE CONTRACTS.

    Section 2305 of title 10, United States Code, is amended by adding 
after subsection (e), as added by section 1015, the following new 
subsection:
    ``(f) Award of Multiple Contracts.--In procuring any supply or 
service using competitive procedures, the head of an agency may award 
more than one contract for the same supply or service in any case in 
which the head of the agency determines that it is in the best 
interests of the Federal Government to award those contracts for the 
purpose of maintaining a continuous source for the supply or 
service.''.

SEC. 1017. CONSIDERATION OF CONTRACTOR PAST PERFORMANCE.

    Paragraph (3) of section 2305(a) of title 10, United States Code, 
as amended by section 1011(2), is further amended by striking out 
``capability, and prior experience'' in subparagraph (A) and inserting 
in lieu thereof ``capability, prior experience, and past performance''.

SEC. 1018. DISCOURAGEMENT OF NONSTANDARD CONTRACT CLAUSES.

    Section 2305 of title 10, United States Code, is amended by adding 
after subsection (f), as added by section 1016, the following new 
subsection:
    ``(g) Nonstandard Contract Clauses.--The Secretary of Defense shall 
prescribe regulations to discourage, to the maximum extent practicable, 
the use of a nonstandard contract clause on a repetitive basis. The 
regulations shall include provisions that--
            ``(1) clearly define nonstandard clauses; and
            ``(2) require prior approval for the use of a nonstandard 
        clause on a repetitive basis by an official at a level of 
        responsibility above the contracting officer.''.

                     Subpart C--Kinds of Contracts

SEC. 1021. REPEAL OF REQUIREMENT FOR SECRETARIAL DETERMINATION 
              REGARDING USE OF COST TYPE OR INCENTIVE CONTRACT.

    Subsection (c) of section 2306 of title 10, United States Code, is 
repealed.

     Subpart D--Miscellaneous Provisions for the Encouragement of 
                              Competition

SEC. 1031. REPEAL OF REQUIREMENT FOR ANNUAL REPORT BY ADVOCATES FOR 
              COMPETITION.

    Subsection (c) of section 2318 of title 10, United States Code, is 
repealed.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1051. REFERENCES TO FEDERAL ACQUISITION REGULATION.

    Section 303 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253) is amended--
            (1) in subsection (a)(1)(A), by striking out 
        ``modifications'' and all that follows through ``of 1984'' and 
        inserting in lieu thereof ``Federal Acquisition Regulation''; 
        and
            (2) in subsection (g)(1), by striking out ``regulations 
        modified'' and all that follows through ``of 1984,'' and 
        inserting in lieu thereof ``Federal Acquisition Regulation''.

SEC. 1052. EXCLUSION OF PARTICULAR SOURCES.

    (a) Prohibition on Use of Classes of Purchases or Contracts.--
Section 303(b) of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253(b)) is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The determination required of the agency head in paragraph 
(1) may not be made for a class of purchases or contracts.''; and
            (3) in paragraph (4), as redesignated by paragraph (1), by 
        striking out ``paragraphs (1) and (2)'' and inserting in lieu 
        thereof ``paragraphs (1) and (3)''.
    (b) Additional Justification To Exclude Particular Source.--Section 
303(b)(1) of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 253(b)(1)) is amended--
            (1) by striking out ``or'' at the end of subparagraph (B);
            (2) by striking out the period at the end of subparagraph 
        (C) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) would ensure a continuous and reliable source; 
        satisfy a critical need for health, safety, or other emergency 
        supplies; or satisfy projected needs resulting from a history 
        of high demand for the supply or service.''.

SEC. 1053. EXCEPTION TO USE OF COMPETITIVE PROCEDURES FOR CONTINUED 
              OCCUPANCY OF LEASED SPACE.

    Section 303(d)(1) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(d)(1)) is amended--
            (1) by striking out ``and'' at the end of subparagraph (A);
            (2) by striking out the period at the end of subparagraph 
        (B) and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(C) in the case of a follow-on contract to acquire 
        leasehold interests in real property providing for the 
        continued occupancy by Federal agencies of space in buildings, 
        such space may be deemed to be available only from the 
        incumbent lessor and may be acquired through procedures other 
        than competitive procedures if a determination is made that (i) 
        the occupant agencies have a continuing need for the space, 
        (ii) the space meets the needs of the agencies, and (iii) the 
        incumbent lessor is willing to continue to provide the space at 
        a fair market price as established by the Government based on a 
        market survey or an appraisal conducted in accordance with 
        generally accepted real property appraisal procedures.''.

SEC. 1054. APPROVAL FOR USE OF NONCOMPETITIVE PROCEDURES.

    Section 303(f)(1)(B)(i) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(i)) is amended by 
inserting before the semicolon at the end the following: ``or by an 
official referred to in clause (ii), (iii), or (iv)''.

        Subpart B--Planning, Solicitation, Evaluation, and Award

SEC. 1061. SOLICITATION, EVALUATION, AND AWARD.

    (a) Content of Solicitation.--Section 303A of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253a) is amended--
            (1) in subsection (b)(1)(A)--
                    (A) by inserting ``and significant subfactors'' 
                after ``all significant factors''; and
                    (B) by striking out ``(including price)'' and 
                inserting ``(including cost or price, cost-related or 
                price-related factors and subfactors, and noncost-
                related or nonprice-related factors and significant 
                subfactors)'';
            (2) in subsection (b)(1)(B), by inserting ``and 
        subfactors'' after ``factors'';
            (3) in subsection (b)(2)(B), by striking out clause (i) and 
        inserting in lieu thereof the following:
                    ``(i) either a statement that the proposals are 
                intended to be evaluated with, and award made after, 
                discussions with the offerors, or a statement that the 
                proposals are intended to be evaluated, and award made, 
                without discussions with the offerors (other than 
                discussions conducted for the purpose of minor 
                clarification) unless discussions are determined to be 
                necessary; and''; and
            (4) by adding at the end the following new subsection:
    ``(c)(1) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, an agency head shall 
clearly establish the relative importance assigned to the evaluation 
factors and significant subfactors, including cost or price and the 
quality of the product or services to be provided (including technical 
capability, management capability, prior experience, and past 
performance of the offeror).
    ``(2) Nothing in this subsection prohibits an agency from--
            ``(A) providing additional information in a solicitation, 
        including numeric weights for all evaluation factors (and 
        significant subfactors); or
            ``(B) stating in a solicitation that award will be made to 
        the offeror that meets the solicitation's mandatory 
        requirements at the lowest price or cost.''.
    (b) Evaluation and Award.--Section 303B of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended--
            (1) in subsection (a), by inserting ``, and award a 
        contract,'' after ``competitive proposals'';
            (2) in subsection (c), by inserting ``in accordance with 
        subsection (a)'' in the second sentence after ``shall evaluate 
        the bids''; and
            (3) in subsection (d)--
                    (A) by striking out paragraph (1) and inserting in 
                lieu thereof the following:
    ``(1) An agency head shall evaluate competitive proposals in 
accordance with subsection (a) and may award a contract--
            ``(A) after discussions with the offerors, provided that 
        written or oral discussions have been conducted with all 
        responsible offerors who submit proposals within the 
        competitive range; or
            ``(B) based on the proposals received and without 
        discussions with the offerors (other than discussions conducted 
        for the purpose of minor clarification), provided that, as 
        required by section 303A(b)(2)(B)(i), the solicitation included 
        a statement that proposals are intended to be evaluated, and 
        award made, without discussions, unless discussions are 
        determined to be necessary.''; and
                    (B) by striking out paragraphs (2) and (3) and by 
                redesignating paragraph (4) as paragraph (2).
    (c) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to--
                    (A) solicitations for sealed bids or competitive 
                proposals issued after the end of the 180-day period 
                beginning on the date of the enactment of this Act; and
                    (B) contracts awarded pursuant to those 
                solicitations.
            (2) Authority to apply amendments early.--The head of an 
        executive agency may apply the amendments made by this section 
        to solicitations issued before the end of the period referred 
        to in paragraph (1). The head of the executive agency shall 
        publish in the Federal Register notice of any such earlier date 
        of application at least 10 days before that date.

SEC. 1062. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE 
              OPTIONS.

    Section 303A of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253a), as amended by section 1061(a)(4), is 
further amended by adding at the end the following new subsection:
    ``(d) An agency head, in issuing a solicitation for a contract to 
be awarded using sealed bid procedures, may not include in such 
solicitation a clause providing for the evaluation of prices under the 
contract for options to purchase additional supplies or services under 
the contract unless the agency head has determined that there is a 
reasonable likelihood that the options will be exercised.''.

SEC. 1063. PROMPT NOTICE OF AWARD.

    (a) Sealed Bid Procedures.--Subsection (c) of section 303B of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253b) is amended by adding at the end the following: ``Within 3 working 
days after the date of contract award, the agency head shall notify, in 
writing or by electronic means, offerors not awarded the contract that 
the contract has been awarded.''.
    (b) Competitive Proposals Procedures.--Paragraph (2) of section 
303B(d) of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253b(d)), as redesignated by section 1061(b)(3)(B), is 
amended in the second sentence by striking out ``shall promptly 
notify'' and inserting in lieu thereof ``, within 3 working days after 
the date of contract award, shall notify, in writing or by electronic 
means,''.

SEC. 1064. POST-AWARD DEBRIEFINGS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b) is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e)(1) When a contract is awarded by an executive agency on the 
basis of competitive proposals, an unsuccessful offeror, upon written 
request received by the executive agency within 3 working days after 
the date of receipt of notification of the contract award, shall be 
debriefed and furnished the basis for the selection decision and 
contract award. An employee of the executive agency shall debrief the 
offeror within, to the maximum extent practicable, 4 working days after 
receipt of the request by the executive agency.
    ``(2) Such debriefing shall include, at a minimum--
            ``(A) the executive agency's evaluation of the significant 
        weak or deficient factors in the offeror's offer;
            ``(B) the overall evaluated cost of the offer of the 
        contractor awarded the contract and the overall evaluated cost 
        of the offer of the debriefed offeror;
            ``(C) the overall ranking of all offers and the total 
        technical and cost scores of all offers;
            ``(D) a summary of the rationale for the award;
            ``(E) in the case of an offer by the debriefed offeror that 
        includes a commercial end item, the make and model (or 
        equivalent description) of the item included in the offer of 
        the contractor awarded the contract; and
            ``(F) reasonable responses to questions posed by the 
        debriefed offeror as to whether source selection procedures set 
        forth in the solicitation, applicable regulations, and other 
        applicable authorities were followed by the executive agency.
    ``(3) The debriefing shall not include point-by-point comparisons 
of the debriefed offeror's offer with other offers and shall not 
disclose any information that is exempt from disclosure under section 
552 of title 5, United States Code.
    ``(4) Each solicitation for competitive proposals shall include a 
statement that information described in paragraph (2) may be disclosed 
in post-award debriefings.
    ``(5) If, within one year after the date of the contract award and 
as a result of a successful procurement protest or otherwise, the 
executive agency seeks to fulfill same the requirement under the 
contract on the basis of a new solicitation of offers or on the basis 
of the best and final offers considered in the awarding of that 
contract, the agency head shall make available to offerors--
            ``(A) all information provided in debriefings under this 
        subsection regarding the offer of the contractor awarded the 
        contract; and
            ``(B) all comparable information with respect to the 
        original offerors.
    ``(6) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 1065. PROTEST FILE.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b) is amended by adding at the end the 
following new subsection:
    ``(h)(1) If, in the case of a solicitation for a contract issued 
by, or an award or proposed award of a contract by, an agency head, a 
protest is filed pursuant to the procedures in subchapter V of chapter 
35 of title 31, United States Code, and an actual or prospective 
offeror so requests, a file of the protest shall be established by the 
contracting activity and reasonable access shall be provided to actual 
or prospective offerors.
    ``(2) A file established pursuant to paragraph (1) shall contain 
such information as would ordinarily be releasable under section 552 of 
title 5 (commonly referred to as the `Freedom of Information Act').
    ``(3) Regulations implementing this subsection shall be consistent 
with the regulations regarding the preparation and submission of an 
agency's protest file (the so-called `rule 4 file') for protests to the 
General Services Board of Contract Appeals under the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.).''.

SEC. 1066. AWARD OF MULTIPLE CONTRACTS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b), as amended by section 1065, is further 
amended by adding at the end the following new subsection:
    ``(i) Award of Multiple Contracts.--In procuring any supply or 
service using competitive procedures, an executive agency may award 
more than one contract for the same supply or service in any case in 
which the head of the agency determines that it is in the best 
interests of the Federal Government to award those contracts for the 
purpose of maintaining a continuous source for the supply or 
service.''.

SEC. 1067. DISCOURAGEMENT OF NONSTANDARD CONTRACT CLAUSES.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b), as amended by section 1066, is further 
amended by adding at the end the following new subsection:
    ``(j) Nonstandard Contract Clauses.--The head of each executive 
agency shall promulgate regulations to discourage, to the maximum 
extent practicable, the use of a nonstandard contract clause on a 
repetitive basis. The regulations shall include provisions that--
            ``(1) clearly define nonstandard clauses; and
            ``(2) require prior approval for the use of a nonstandard 
        clause on a repetitive basis by an official at a level of 
        responsibility above the contracting officer.''.

                     Subpart C--Kinds of Contracts

SEC. 1071. REPEAL OF AGENCY HEAD DETERMINATION REGARDING USE OF COST 
              TYPE OR INCENTIVE CONTRACT.

    Section 304(b) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254(b)) is amended by striking out the second 
sentence.

SEC. 1072. MULTIYEAR CONTRACTS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.) is amended by inserting after section 
304 the following new section:

``SEC. 304A. MULTIYEAR CONTRACTS.

    ``(a) In General.--To the extent that funds are otherwise available 
for obligation, the head of an agency may make multiyear contracts for 
the purchase of property, whenever the agency head finds--
            ``(1) that the use of such a contract will result in 
        substantial savings of the total anticipated costs of carrying 
        out the program through annual contracts;
            ``(2) that the minimum need for the property to be 
        purchased is expected to remain substantially unchanged during 
        the contemplated contract period in terms of production rate, 
        procurement rate, and total quantities;
            ``(3) that there is a reasonable expectation that 
        throughout the contemplated contract period the executive 
        agency will request funding for the contract at the level 
        required to avoid contract cancellation;
            ``(4) that there is a stable design for the property to be 
        acquired and that the technical risks associated with such 
        property are not excessive; and
            ``(5) that the estimates of both the cost of the contract 
        and the anticipated cost avoidance through the use of a 
        multiyear contract are realistic.
    ``(b)(1) The head of the agency shall prescribe acquisition 
regulations to promote the use of multiyear contracting as authorized 
by subsection (a) in a manner that will allow the most efficient use of 
multiyear contracting.
    ``(2) Such regulations may provide for cancellation provisions in 
such multiyear contracts to the extent that such provisions are 
necessary and in the best interests of the United States. Such 
cancellation provisions may include consideration of both recurring and 
nonrecurring costs of the contractor associated with the production of 
the items to be delivered under the contract.
    ``(3) Such regulations shall also provide that, to the extent 
practicable, the administration of this section, and of the regulations 
prescribed under this section, shall not be carried out in a manner to 
preclude or curtail the existing ability of the executive agency to--
            ``(A) provide for competition in the production of items to 
        be delivered under such a contract; or
            ``(B) provide for termination of a prime contract the 
        performance of which is deficient with respect to cost, 
        quality, or schedule.
    ``(c) Before any contract described in subsection (a) that contains 
a clause setting forth a cancellation ceiling in excess of $100,000,000 
may be awarded, the head of the agency shall give written notification 
of the proposed contract and of the proposed cancellation ceiling for 
that contract to the Congress, and such contract may not then be 
awarded until the end of a period of 30 days beginning on the date of 
such notification.
    ``(d) Contracts may be made under this section for advance 
procurement, if feasible and practical, in order to achieve economic-
lot purchases and more efficient production rates.
    ``(e) In the event funds are not made available for the 
continuation of a contract made under this section into a subsequent 
fiscal year, the contract shall be canceled or terminated, and the 
costs of cancellation or termination may be paid from--
            ``(1) appropriations originally available for the 
        performance of the contract concerned;
            ``(2) appropriations currently available for procurement of 
        the type of property concerned, and not otherwise obligated; or
            ``(3) funds appropriated for those payments.
    ``(f) This section does not apply to contracts for the purchase of 
property to which section 111 of this Act applies.
    ``(g) For the purposes of this section, a multiyear contract is a 
contract for the purchase of property or services for more than one, 
but not more than five, program years. Such a contract may provide that 
performance under the contract during the second and subsequent years 
of the contract is contingent upon the appropriation of funds and (if 
it does so provide) may provide for a cancellation payment to be made 
to the contractor if such appropriations are not made.''.

                    PART III--ACQUISITIONS GENERALLY

SEC. 1091. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON COMPETITION.

    Section 23 of the Office of Federal Procurement Policy Act (41 
U.S.C. 419) is repealed.

                   Subtitle B--Truth in Negotiations

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 1201. STABILIZATION OF DOLLAR THRESHOLD OF APPLICABILITY.

    (a) Dollar Threshold Stabilization for Offerors for Prime 
Contracts.--Paragraph (1)(A) of section 2306a(a) of title 10, United 
States Code, is amended--
            (1) in clause (i), by striking out ``and before January 1, 
        1996,''; and
            (2) in clause (ii), by striking out ``or after December 31, 
        1995,''.
    (b) Adjustment of Dollar Threshold.--Such section is further 
amended by adding at the end the following new paragraph:
    ``(7) The dollar amount in each of subparagraphs (A), (B), (C), and 
(D) of paragraph (1) shall be adjusted on October 1 of each year 
divisible by 5 to the equivalent amount in constant fiscal year 1993 
dollars (rounded to the nearest $1,000).''.

SEC. 1202. EXCEPTIONS TO COST OR PRICING DATA REQUIREMENTS.

    (a) Exceptions.--Subsection (b) of section 2306a of title 10, 
United States Code, is amended to read as follows:
    ``(b) Exceptions.--(1) This section shall not be applied to a 
contract or subcontract, or a modification to a contract or 
subcontract--
            ``(A) for which the price agreed upon is based on--
                    ``(i) adequate price competition;
                    ``(ii) established catalog or market prices of 
                commercial items or of services regularly used for 
                other than Federal Government purposes, as the case may 
                be, that are sold in sufficient quantities to the 
                general public; or
                    ``(iii) prices set by law or regulation; or
            ``(B) in an exceptional case when the head of the agency 
        determines that the requirements of this section may be waived 
        and states in writing the reasons for such determination.
    ``(2) The Federal Acquisition Regulation (issued under section 
25(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 
421(c)) shall provide clear standards for determining whether the 
exceptions provided in paragraph (1)(A) apply. In the case of the 
exception provided in paragraph (1)(A)(i), the regulations shall 
specify the criteria to be used to determine whether adequate price 
competition exists. In the case of the exception provided in paragraph 
(1)(A)(ii), the regulations shall preclude the consideration of sales 
to the Federal Government, including the percentage of an item's 
overall sales that are made to the Federal Government, when determining 
whether the item has been sold in sufficient quantities to the 
public.''.
    (b) Limitation on Additional Authority.--Subsection (c) of such 
section is amended by adding at the end the following new sentence: 
``The head of an agency may not require such data to be submitted under 
this subsection for any contract or subcontract, or modification to a 
contract or subcontract, covered by the exceptions in subsection 
(b).''.

SEC. 1203. RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR RECORDS.

    Subsection (f) of section 2306a of title 10, United States Code, is 
amended to read as follows:
    ``(f) Right of United States To Examine Contractor Records.--For 
the purpose of evaluating the accuracy, completeness, and currency of 
cost or pricing data required to be submitted by this section, the head 
of an agency shall have the rights provided by section 2313(a)(2) of 
this title.''.

SEC. 1204. CONSISTENCY OF TIME REFERENCES.

    Section 2306a of title 10, United States Code, is amended--
            (1) in subparagraphs (A)(ii) and (B)(ii) of subsection 
        (d)(4), by inserting ``or, if applicable consistent with 
        paragraph (1)(B), another date agreed upon between the 
        parties'' after ``(or price of the modification)''; and
            (2) in subsection (g), by inserting ``or, if applicable 
        consistent with subsection (d)(1)(B), another date agreed upon 
        between the parties'' after ``(or the price of a contract 
        modification)''.

SEC. 1205. REPEAL OF SUPERSEDED PROVISION.

    Subsection (c) of section 803 of Public Law 101-510 (10 U.S.C. 
2306a note) is repealed.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 1251. REVISION OF CIVILIAN AGENCY PROVISIONS TO ENSURE UNIFORM 
              TREATMENT OF COST OR PRICING DATA.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.) is further amended--
            (1) in section 304, by striking out subsection (d); and
            (2) by inserting after section 304A, as added by section 
        1072, the following new section:

``SEC. 304B. COST OR PRICING DATA: TRUTH IN NEGOTIATIONS.

    ``(a) Required Cost or Pricing Data and Certification.--(1) An 
agency head shall require offerors, contractors, and subcontractors to 
make cost or pricing data available as follows:
            ``(A) An offeror for a prime contract under this title to 
        be entered into using procedures other than sealed-bid 
        procedures shall be required to submit cost or pricing data 
        before the award of a contract if--
                    ``(i) in the case of a prime contract entered into 
                after the date of the enactment of the Federal 
                Acquisition Improvement Act of 1994, the price of the 
                contract to the United States is expected to exceed 
                $500,000; and
                    ``(ii) in the case of a prime contract entered into 
                on or before the date of the enactment of the Federal 
                Acquisition Improvement Act of 1994, the price of the 
                contract to the United States is expected to exceed 
                $100,000.
            ``(B) The contractor for a prime contract under this 
        chapter shall be required to submit cost or pricing data before 
        the pricing of a change or modification to the contract if--
                    ``(i) in the case of a change or modification made 
                to a prime contract referred to in subparagraph (A)(i), 
                the price adjustment is expected to exceed $500,000;
                    ``(ii) in the case of a change or modification made 
                to a prime contract that was entered into on or before 
                the date of the enactment of the Federal Acquisition 
                Improvement Act of 1994, and that has been modified 
                pursuant to paragraph (6), the price adjustment is 
                expected to exceed $500,000; and
                    ``(iii) in the case of a change or modification not 
                covered by clause (i) or (ii), the price adjustment is 
                expected to exceed $100,000.
            ``(C) An offeror for a subcontract (at any tier) of a 
        contract under this title shall be required to submit cost or 
        pricing data before the award of the subcontract if the prime 
        contractor and each higher-tier subcontractor have been 
        required to make available cost or pricing data under this 
        section and--
                    ``(i) in the case of a subcontract under a prime 
                contract referred to in subparagraph (A)(i), the price 
                of the subcontract is expected to exceed $500,000;
                    ``(ii) in the case of a subcontract entered into 
                under a prime contract that was entered into on or 
                before the date of the enactment of the Federal 
                Acquisition Improvement Act of 1994, and that has been 
                modified pursuant to paragraph (6), the price of the 
                subcontract is expected to exceed $500,000; and
                    ``(iii) in the case of a subcontract not covered by 
                clause (i) or (ii), the price of the subcontract is 
                expected to exceed $100,000.
            ``(D) The subcontractor for a subcontract covered by 
        subparagraph (C) shall be required to submit cost or pricing 
        data before the pricing of a change or modification to the 
        subcontract if--
                    ``(i) in the case of a change or modification to a 
                subcontract referred to in subparagraph (C)(i) or 
                (C)(ii), the price adjustment is expected to exceed 
                $500,000; and
                    ``(ii) in the case of a change or modification to a 
                subcontract referred to in subparagraph (C)(iii), the 
                price adjustment is expected to exceed $100,000.
    ``(2) A person required, as an offeror, contractor, or 
subcontractor, to submit cost or pricing data under paragraph (1) (or 
required by the head of the contracting activity concerned to submit 
such data under subsection (c)) shall be required to certify that, to 
the best of the person's knowledge and belief, the cost or pricing data 
submitted are accurate, complete, and current.
    ``(3) Cost or pricing data required to be submitted under paragraph 
(1) (or under subsection (c)), and a certification required to be 
submitted under paragraph (2), shall be submitted--
            ``(A) in the case of a submission by a prime contractor (or 
        an offeror for a prime contract), to the contracting officer 
        for the contract (or to a designated representative of the 
        contracting officer); or
            ``(B) in the case of a submission by a subcontractor (or an 
        offeror for a subcontract), to the prime contractor.
    ``(4) Except as provided under subsection (b), this section applies 
to contracts entered into by an agency head on behalf of a foreign 
government.
    ``(5) For purposes of paragraph (1)(C), a contractor or 
subcontractor granted a waiver under subsection (b)(2) shall be 
considered as having been required to make available cost or pricing 
data under this section.
    ``(6) Upon the request of a contractor that was required to submit 
cost or pricing data under paragraph (1) in connection with a prime 
contract entered into on or before the date of the enactment of the 
Federal Acquisition Improvement Act of 1994, the agency head that 
entered into such contract shall modify the contract to reflect 
subparagraphs (B)(ii) and (C)(ii) of paragraph (1). All such 
modifications shall be made without requiring consideration.
    ``(7) The dollar amount in each of subparagraphs (A), (B), (C), and 
(D) of paragraph (1) shall be adjusted on October 1 of each year 
divisible by 5 to the equivalent amount in constant fiscal year 1993 
dollars (rounded to the nearest $1,000).
    ``(b) Exceptions.--(1) This section shall not be applied to a 
contract or subcontract, or a modification to a contract or 
subcontract--
            ``(A) for which the price agreed upon is based on--
                    ``(i) adequate price competition;
                    ``(ii) established catalog or market prices of 
                commercial items or of services regularly used for 
                other than Federal Government purposes, as the case may 
                be, that are sold in sufficient quantities to the 
                general public; or
                    ``(iii) prices set by law or regulation; or
            ``(B) in an exceptional case when the head of the agency 
        determines that the requirements of this section may be waived 
        and states in writing the reasons for such determination.
    ``(2) The Federal Acquisition Regulation (issued under section 
25(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 
421(c)) shall provide clear standards for determining whether the 
exceptions provided in paragraph (1)(A) apply. In the case of the 
exception provided in paragraph (1)(A)(i), the regulations shall 
specify the criteria to be used to determine whether adequate price 
competition exists. In the case of the exception provided in paragraph 
(1)(A)(ii), the regulations shall preclude the consideration of sales 
to the Federal Government, including the percentage of an item's 
overall sales that are made to the Federal Government, when determining 
whether the item has been sold in sufficient quantities to the public.
    ``(c) Authority To Require Cost or Pricing Data.--When cost or 
pricing data are not required to be submitted by subsection (a), such 
data may nevertheless be required to be submitted by the head of the 
agency if the head of the agency determines that such data are 
necessary for the evaluation by the agency of the reasonableness of the 
price of the contract or subcontract. In any case in which the head of 
the agency requires such data to be submitted under this subsection, 
the head of the agency shall document in writing the reasons for such 
requirement. The head of an agency may not require such data to be 
submitted under this subsection for any contract or subcontract, or 
modification to a contract or subcontract, covered by the exceptions in 
subsection (b).
    ``(d) Price Reductions for Defective Cost or Pricing Data.--(1)(A) 
A prime contract (or change or modification to a prime contract) under 
which a certificate under subsection (a)(2) is required shall contain a 
provision that the price of the contract to the United States, 
including profit or fee, shall be adjusted to exclude any significant 
amount by which it may be determined by the agency head that such price 
was increased because the contractor (or any subcontractor required to 
make available such a certificate) submitted defective cost or pricing 
data.
    ``(B) For the purposes of this section, defective cost or pricing 
data are cost or pricing data which, as of the date of agreement on the 
price of the contract (or another date agreed upon between the 
parties), were inaccurate, incomplete, or noncurrent. If for purposes 
of the preceding sentence the parties agree upon a date other than the 
date of agreement on the price of the contract, the date agreed upon by 
the parties shall be as close to the date of agreement on the price of 
the contract as is practicable.
    ``(2) In determining for purposes of a contract price adjustment 
under a contract provision required by paragraph (1) whether, and to 
what extent, a contract price was increased because the contractor (or 
a subcontractor) submitted defective cost or pricing data, it shall be 
a defense that the United States did not rely on the defective data 
submitted by the contractor or subcontractor.
    ``(3) It is not a defense to an adjustment of the price of a 
contract under a contract provision required by paragraph (1) that--
            ``(A) the price of the contract would not have been 
        modified even if accurate, complete, and current cost or 
        pricing data had been submitted by the contractor or 
        subcontractor because the contractor or subcontractor--
                    ``(i) was the sole source of the property or 
                services procured; or
                    ``(ii) otherwise was in a superior bargaining 
                position with respect to the property or services 
                procured;
            ``(B) the contracting officer should have known that the 
        cost and pricing data in issue were defective even though the 
        contractor or subcontractor took no affirmative action to bring 
        the character of the data to the attention of the contracting 
        officer;
            ``(C) the contract was based on an agreement between the 
        contractor and the United States about the total cost of the 
        contract and there was no agreement about the cost of each item 
        procured under such contract; or
            ``(D) the prime contractor or subcontractor did not submit 
        a certification of cost and pricing data relating to the 
        contract as required under subsection (a)(2).
    ``(4)(A) A contractor shall be allowed to offset an amount against 
the amount of a contract price adjustment under a contract provision 
required by paragraph (1) if--
            ``(i) the contractor certifies to the contracting officer 
        (or to a designated representative of the contracting officer) 
        that, to the best of the contractor's knowledge and belief, the 
        contractor is entitled to the offset; and
            ``(ii) the contractor proves that the cost or pricing data 
        were available before the date of agreement on the price of the 
        contract (or price of the modification), or, if applicable 
        consistent with paragraph (1)(B), another date agreed upon 
        between the parties, and that the data were not submitted as 
        specified in subsection (a)(3) before such date.
    ``(B) A contractor shall not be allowed to offset an amount 
otherwise authorized to be offset under subparagraph (A) if--
            ``(i) the certification under subsection (a)(2) with 
        respect to the cost or pricing data involved was known to be 
        false when signed; or
            ``(ii) the United States proves that, had the cost or 
        pricing data referred to in subparagraph (A)(ii) been submitted 
        to the United States before the date of agreement on the price 
        of the contract (or price of the modification) or, if 
        applicable under paragraph (1)(B), another date agreed upon 
        between the parties, the submission of such cost or pricing 
        data would not have resulted in an increase in that price in 
        the amount to be offset.
    ``(e) Interest and Penalties for Certain Overpayments.--(1) If the 
United States makes an overpayment to a contractor under a contract 
with an executive agency subject to this section and the overpayment 
was due to the submission by the contractor of defective cost or 
pricing data, the contractor shall be liable to the United States--
            ``(A) for interest on the amount of such overpayment, to be 
        computed--
                    ``(i) for the period beginning on the date the 
                overpayment was made to the contractor and ending on 
                the date the contractor repays the amount of such 
                overpayment to the United States; and
                    ``(ii) at the current rate prescribed by the 
                Secretary of the Treasury under section 6621 of the 
                Internal Revenue Code of 1986; and
            ``(B) if the submission of such defective data was a 
        knowing submission, for an additional amount equal to the 
        amount of the overpayment.
    ``(2) Any liability under this subsection of a contractor that 
submits cost or pricing data but refuses to submit the certification 
required by subsection (a)(2) with respect to the cost or pricing data 
shall not be affected by the refusal to submit such certification.
    ``(f) Right of United States To Examine Contractor Records.--For 
the purpose of evaluating the accuracy, completeness, and currency of 
cost or pricing data required to be submitted by this section, the head 
of an agency shall have the rights provided by section 304C(a)(2).
    ``(g) Cost or Pricing Data Defined.--In this section, the term 
`cost or pricing data' means all facts that, as of the date of 
agreement on the price of a contract (or the price of a contract 
modification) or, if applicable consistent with subsection (d)(1)(B), 
another date agreed upon between the parties, a prudent buyer or seller 
would reasonably expect to affect price negotiations significantly. 
Such terms does not include information that is judgmental, but does 
include the factual information from which a judgment was derived.''.

SEC. 1252. REPEAL OF OBSOLETE PROVISION.

    Section 303E of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253e) is repealed.

                  Subtitle C--Research and Development

SEC. 1301. COOPERATIVE AGREEMENTS FOR BASIC, APPLIED, AND ADVANCED 
              RESEARCH.

    Title III of the Federal Property and Administrative Service Act of 
1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the 
following new section:

``SEC. 311. COOPERATIVE AGREEMENTS FOR BASIC, APPLIED, AND ADVANCED 
              RESEARCH.

    ``(a) An executive agency, in carrying out basic, applied, and 
advanced research projects, may enter into cooperative agreements and 
other transactions with any person, any agency or instrumentality of 
the United States, any unit of State or local government, any 
educational institution, and any other entity.
    ``(b)(1) Cooperative agreements and other transactions entered into 
under subsection (a) may include a clause that requires a person or 
other entity to make payments to any department or agency of the 
Federal Government as a condition of receiving support under the 
agreement or other transaction.
    ``(2) The amount of any payment received by the Federal Government 
pursuant to a requirement imposed under paragraph (1) may be credited, 
to the extent authorized by an agency head, to the appropriate account 
established under subsection (c). Amounts so credited shall be merged 
with other funds in the account and shall be available for the same 
purposes and the same period for which other funds in such account are 
available.
    ``(c) The authority provided under subsection (a) may be exercised 
without regard to section 3324 of title 31, United States Code.
    ``(d) The head of the executive agency shall ensure that--
            ``(1) to the maximum extent practicable, a cooperative 
        agreement or other transaction under this section does not 
        provide for research that duplicates research being conducted 
        under existing programs carried out by the executive agency;
            ``(2) to the extent the agency head determines practicable, 
        the funds provided by the Government under the cooperative 
        agreement or other transaction do not exceed the total amount 
        provided by other parties to the cooperative agreement or other 
        transaction; and
            ``(3) the authority under this section is used only when 
        the use of standard contracts or grants is not feasible or 
        appropriate.
    ``(e) There is hereby established on the books of the Treasury 
separate accounts for each executive agency for support of advanced 
research projects provided for in cooperative agreements and other 
transactions entered into under subsection (a). Funds in those accounts 
shall be available for the payment of such support.
    ``(f) An executive agency, in carrying out research projects, may 
permit the director of any federally funded research and development 
center to enter into cooperative research and development agreements 
with any person, any agency or instrumentality of the United States, 
any unit of State or local government, and any other entity under the 
authority granted by section 11 of the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3710a). Technology may be transferred 
to a non-Federal party to such an agreement consistent with the 
provisions of sections 10 and 11 of such Act (15 U.S.C. 3710, 
3710a).''.

SEC. 1302. COMPETITION REQUIREMENT FOR AWARDS OF GRANTS AND CONTRACTS 
              TO COLLEGES AND UNIVERSITIES.

    Subsections (a) and (b) of section 2361 of title 10, United States 
Code, are amended by inserting ``or nonprofit organization other than a 
federally funded research and development center (FFRDC)'' after 
``college or university'' each place it appears.

                    Subtitle D--Procurement Protests

              PART I--PROTESTS TO THE COMPTROLLER GENERAL

SEC. 1401. REVIEW OF PROTESTS AND EFFECT ON CONTRACTS PENDING DECISION.

    (a) Clarification of Period for Certain Action.--Paragraph (3) of 
section 3553(c) of title 31, United States Code, is amended by striking 
out ``thereafter'' and inserting in lieu thereof ``after the making of 
such finding''.
    (b) Suspension of Performance.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Authorization and Suspension of Performance.--
            ``(1) Authorization required.--A contractor awarded a 
        Federal agency contract may not begin performance of the 
        contract or engage in any related activities that result in 
        obligations being incurred by the United States until receipt 
        of an authorization to proceed with performance of the contract 
        from the contracting officer responsible for the award of the 
        contract.
            ``(2) Prohibition of authorization under certain 
        conditions.--A contracting officer may not authorize a 
        contractor to proceed with performance of the contract if--
                    ``(A) a protest is likely to be filed; and
                    ``(B) the immediate performance of the contract is 
                not in the best interests of the United States.
            ``(3) Suspension during period when protest is pending.--
        (A) If the Federal agency awarding the contract receives notice 
        of a protest in accordance with this section during the period 
        described in subparagraph (B)--
                    ``(i) the contracting officer may not authorize 
                performance of the contract to begin while the protest 
                is pending; and
                    ``(ii) if contract performance was authorized in 
                accordance with paragraph (2) before receipt of the 
                notice, the contracting officer shall immediately 
                direct the contractor to cease performance under the 
                contract and to suspend any related activities that may 
                result in additional obligations being incurred by the 
                United States under that contract.
            ``(B) The period referred to in subparagraph (A), with 
        respect to a contract, is the period beginning on the date on 
        which the contract is awarded and ending on the later of--
                    ``(i) the date that is 8 working days after such 
                date of contract award; or
                    ``(ii) in the case of a procurement with respect to 
                which an unsuccessful offeror has requested a 
                debriefing in accordance with section 2305(b)(5) of 
                title 10 or section 303B(e) of the Federal Property and 
                Administrative Services Act of 1949, as applicable, the 
                date that is 5 working days after the date on which the 
                Federal agency debriefs the unsuccessful offeror.
            ``(C) Performance and related activities suspended pursuant 
        to subparagraph (A)(ii) by reason of a protest may not be 
        resumed while the protest is pending.
            ``(D) The head of the contracting activity may authorize 
        the performance of the contract (notwithstanding a protest of 
        which the Federal agency has notice under this section)--
                    ``(i) upon a written finding--
                            ``(I) that performance of the contract is 
                        in the best interests of the United States; or
                            ``(II) that urgent and compelling 
                        circumstances that significantly affect 
                        interests of the United States will not permit 
                        waiting for the decision of the Comptroller 
                        General concerning the protest; and
                    ``(ii) after the Comptroller General is notified of 
                that finding.''.

SEC. 1402. DECISIONS ON PROTESTS.

    (a) Period for Resolution of Amendments to Protests.--Section 
3554(a) of title 31, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) An amendment to a protest that adds a new ground of protest, 
if timely raised, should be resolved, to the maximum extent 
practicable, within the time limit established under paragraph (1) of 
this subsection for final decision of the initial protest. If an 
amended protest cannot be resolved within such time limit, the 
Comptroller General may resolve the amended protest through the express 
option under paragraph (2) of this subsection.''.
    (b) GAO Recommendations on Protests.--
            (1) Implementation of recommendations.--Section 3554 of 
        title 31, United States Code, is amended--
                    (A) in subsection (b), by adding at the end the 
                following new paragraph:
    ``(3) If the Federal agency fails to implement fully the 
recommendations of the Comptroller General under this subsection with 
respect to a solicitation for a contract or an award or proposed award 
of a contract within 60 days after receiving the recommendations, the 
head of the contracting activity responsible for that contract shall 
report such failure to the Comptroller General not later than 5 working 
days after the end of such 60-day period.'';
                    (B) by striking out subsection (c) and inserting in 
                lieu thereof the following:
    ``(c)(1) If the Comptroller General determines that a solicitation 
for a contract or a proposed award or the award of a contract does not 
comply with a statute or regulation, the Comptroller General may 
recommend that the Federal agency conducting the procurement pay to an 
appropriate interested party the costs of--
            ``(A) filing and pursuing the protest, including reasonable 
        attorney's fees and consultant and expert witness fees; and
            ``(B) bid and proposal preparation.
    ``(2) If the Comptroller General recommends under paragraph (1) 
that a Federal agency pay costs to an interested party, the Federal 
agency shall--
            ``(A) pay the costs promptly out of funds available to or 
        for the use of the Federal agency; or
            ``(B) if the Federal agency does not make such payment, 
        promptly report to the Comptroller General the reasons for the 
        failure to follow the Comptroller General's recommendation.
    ``(3) If the Comptroller General recommends under paragraph (1) 
that a Federal agency pay costs to an interested party, the Federal 
agency and the interested party shall attempt to reach an agreement on 
the amount of the costs to be paid. If the Federal agency and the 
interested party are unable to agree on the amount to be paid, the 
Comptroller General may, upon the request of the interested party, 
recommend to the Federal agency the amount of the costs that the 
Federal agency should pay.''; and
                    (C) by striking out subsection (e) and inserting in 
                lieu thereof the following:
    ``(e)(1) The Comptroller General shall report promptly to the 
Committee on Governmental Affairs and the Committee on Appropriations 
of the Senate and to the Committee on Government Operations and the 
Committee on Appropriations of the House of Representatives any case in 
which a Federal agency fails to implement fully a recommendation of the 
Comptroller General under subsection (b) or (c). The report shall 
include--
            ``(A) a comprehensive review of the pertinent procurement, 
        including the circumstances of the failure of the Federal 
        agency to implement a recommendation of the Comptroller 
        General; and
            ``(B) a recommendation regarding whether, in order to 
        correct an inequity or to preserve the integrity of the 
        procurement process, the Congress should consider--
                    ``(i) private relief legislation;
                    ``(ii) further investigation by the Congress; or
                    ``(iii) other action.
    ``(2) Not later than January 31 of each year, the Comptroller 
General shall transmit to the Congress a report containing a summary of 
each instance in which a Federal agency did not fully implement a 
recommendation of the Comptroller General under subsection (b) or (c) 
during the preceding year. The report shall also describe each instance 
in which a final decision in a protest was not rendered within 125 days 
after the date the protest is submitted to the Comptroller General.''.
            (2) Requirement for payment in accordance with prior gao 
        determinations.--Amounts to which the Comptroller General 
        declared an interested party to be entitled under section 3554 
        of title 31, United States Code, as in effect immediately 
        before the enactment of this Act, shall, if not paid or 
        otherwise satisfied by the Federal agency concerned before the 
        date of the enactment of this Act, be paid out of funds 
        available to or for the use of the Federal agency.
    (c) Recovery of Costs for Frivolous Protests.--Such section is 
further amended by adding at the end the following new subsection:
    ``(f) If the Comptroller General expressly finds that a protest or 
a portion of a protest is frivolous or has not been brought or pursued 
in good faith, the Comptroller may recommend that the protester or 
other interested party who joins the protest be liable to the United 
States for payment of all or that portion of the United States costs, 
for which such a finding is made, of reviewing the protest, including 
the fees and other expenses (as defined in section 2412(d)(2)(A) of 
title 28) incurred by the United States in defending the protest. The 
Federal Acquisition Regulation shall provide guidance under which the 
head of an agency may initiate action to obtain such costs, unless (A) 
special circumstances would make such payment unjust, or (B) the 
protester obtains documents or other information for the first time, 
after the protest is filed with the Comptroller General, which 
establishes that the protest or a portion is frivolous or has not been 
brought in good faith and the protester then promptly withdraws the 
protest or portion of the protest.''.
    (d) Restriction on Access to Certain Information.--Section 3553(f) 
of title 31, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(f)''; and
            (2) by adding at the end the following:
    ``(2)(A) The Comptroller General may issue protective orders which 
establish terms, conditions, and restrictions for the provision of any 
document to a person under paragraph (1), that prohibit or restrict the 
disclosure by the person of information described in subparagraph (C) 
that is contained in such a document.
    ``(B) The penalties specified under section 27(i) of the Office of 
Federal Procurement Policy Act shall apply to the disclosure of 
information described in subparagraph (C) in violation of a term, 
condition, or restriction in a protective order under this paragraph by 
a person that is subject to the protective order.
    ``(C) Information referred to in subparagraphs (A) and (B) is 
procurement sensitive information, trade secrets, or other proprietary 
or confidential research, development, or commercial information.
    ``(D) A protective order under this paragraph shall not be 
considered to authorize the withholding of any document or information 
from the Congress or an executive agency.''.

SEC. 1403. REGULATIONS.

    (a) Computation of Periods.--Section 3555 of title 31, United 
States Code, is amended--
            (1) by redesignating subsection (b) as subsection (d); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) The procedures shall provide that, in the computation of any 
period described in this subchapter--
            ``(1) the day of the act, event, or default from which the 
        designated period of time begins to run not be included; and
            ``(2) the last day after such act, event, or default be 
        included, unless--
                    ``(A) such last day is a Saturday, a Sunday, or a 
                legal holiday; or
                    ``(B) in the case of a filing of a paper at the 
                General Accounting Office or a Federal agency, such 
                last day is a day on which weather or other conditions 
                make the General Accounting Office or Federal agency 
                inaccessible, in which event the next day that is not a 
                Saturday, Sunday, or legal holiday shall be 
                included.''.
    (b) Electronic Filings and Disseminations.--Such section, as 
amended by subsection (a), is further amended by inserting after 
subsection (b) the following new subsection:
    ``(c) The Comptroller General may prescribe procedures for the 
electronic filing and dissemination of documents and information 
required under this subchapter. In prescribing such procedures, the 
Comptroller General shall consider the ability of all parties to 
achieve electronic access to such documents and records.''.
    (c) Repeal of Obsolete Deadline.--Subsection (a) of such section is 
amended by striking out ``Not later than January 15, 1985, the'' and 
inserting in lieu thereof ``The''.

     PART II--PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING

SEC. 1431. PERIODS FOR CERTAIN ACTIONS.

    (a) Suspension of Procurement Authority.--(1) Paragraph (2)(B) of 
section 111(f) of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 759(f)) is amended--
            (A) by redesignating clauses (i) and (ii) as subclauses (I) 
        and (II), respectively;
            (B) by inserting ``(i)'' after ``(B)''; and
            (C) by adding at the end the following:
    ``(ii) A suspension under this subparagraph shall not preclude the 
Federal agency concerned from continuing the procurement process up to 
but not including award of the contract if the Board determines such 
action is in the best interests of the United States.''.
    (2) Paragraph (3) of such section is amended by striking out 
subparagraph (A) and inserting in lieu thereof the following:
    ``(A)(i) If, with respect to an award of a contract, the board 
receives notice of a protest under this subsection within the period 
described in clause (ii), the board shall, at the request of an 
interested party, hold a hearing to determine whether the board should 
suspend the procurement authority of the Administrator or the 
Administrator's delegation of procurement authority for the protested 
procurement on an interim basis until the board can decide the protest.
    ``(ii) The period referred to in clause (i) is the period beginning 
on the date on which the contract is awarded and ending on the later 
of--
            ``(I) the date that is 8 working days after such contract 
        award date; or
            ``(II) in the case of a procurement with respect to which 
        an unsuccessful offeror has requested a debriefing in 
        accordance with section 303B(e), the date that is 5 working 
        days after the date on which the Federal agency debriefs the 
        unsuccessful offeror.
    ``(iii) The board shall hold the requested hearing within 7 working 
days after the date of the filing of the protest.''.
    (b) Resolution of Amendments to Protests.--Paragraph (4)(B) of such 
section is amended by adding at the end the following: ``An amendment 
which adds a new ground of protest should be resolved, to the maximum 
extent practicable, within the time limits established for resolution 
of the initial protest.''.

SEC. 1432. DISMISSALS OF FRIVOLOUS PROTESTS AND RECOVERY OF COSTS.

    Section 111(f)(4) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(4)) is amended by striking out 
subparagraph (C) and inserting in lieu thereof the following new 
subparagraphs:
    ``(C) The board may dismiss a protest that the board determines--
            ``(i) is frivolous;
            ``(ii) has been brought in bad faith; or
            ``(iii) does not state on its face a valid basis for 
        protest.
    ``(D) If the board makes a determination under subparagraph (C), 
the board may impose appropriate sanctions. Such sanctions may include 
imposition of liability on the protester, or other interested party who 
joins the protest, for payment to the United States of all or that 
portion of the United States costs, for which such a finding is made, 
of reviewing the protest, including the fees and other expenses (as 
defined in section 2412(d)(2)(A) of title 28) incurred by the United 
States in defending the protest. The Federal Acquisition Regulation 
shall provide guidance under which the head of an agency may initiate 
action to obtain such costs, unless (i) special circumstances would 
make such payment unjust, or (ii) the protester obtains documents or 
other information for the first time, after the protest is filed with 
the board, which establishes that the protest or a portion is frivolous 
or has not been brought in good faith and the protester then promptly 
withdraws the protest or portion of the protest.''.

SEC. 1433. AWARD OF COSTS.

    Section 111(f)(5) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(5)) is amended by striking out 
subparagraph (C) and inserting in lieu thereof the following:
    ``(C) Whenever the board makes such a determination, it may, in 
accordance with section 1304 of title 31, United States Code, further 
declare an appropriate prevailing party to be entitled to the cost of 
filing and pursuing the protest (including reasonable attorney's fees 
and consultant and expert witness fees), and bid and proposal 
preparation.''.

SEC. 1434. DISMISSAL AGREEMENTS.

    Section 111(f)(5) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(5)), as amended by section 1434, 
is further amended by adding at the end the following new 
subparagraphs:
    ``(D) Any agreement that provides for the dismissal of a protest 
and involves a direct or indirect expenditure of appropriated funds 
shall be submitted to the board and shall be made a part of the public 
record (subject to any protective order considered appropriate by the 
board) before dismissal of the protest. If a Federal agency is a party 
to a settlement agreement, the submission of the agreement submitted to 
the board shall include a memorandum, signed by the contracting officer 
concerned, that describes in detail the procurement, the grounds for 
protest, the Federal Government's position regarding the grounds for 
protest, the terms of the settlement, and the agency's position 
regarding the propriety of the award or proposed award of the contract 
at issue in the protest.
    ``(E) Payment of amounts due from an agency under subparagraph (C) 
or under the terms of a settlement agreement under subparagraph (D) 
shall be made from the appropriation made by section 1304 of title 31, 
United States Code, for the payment of judgments. The Federal agency 
concerned shall reimburse that appropriation account out of funds 
available for the procurement.''.

SEC. 1435. MATTERS TO BE COVERED IN REGULATIONS.

    Section 111(f) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759(f)) is amended--
            (1) by striking out paragraph (8);
            (2) by redesignating paragraph (9) as paragraph (8); and
            (3) by inserting after paragraph (6) the following:
    ``(7)(A) The board shall adopt and issue such rules and procedures 
as may be necessary to the expeditious disposition of protests filed 
under the authority of this subsection.
    ``(B) The procedures shall provide that, in the computation of any 
period described in this subsection--
            ``(i) the day of the act, event, or default from which the 
        designated period of time begins to run not be included; and
            ``(ii) the last day after such act, event, or default be 
        included, unless--
                    ``(I) such last day is a Saturday, a Sunday, or a 
                legal holiday; or
                    ``(II) in the case of a filing of a paper at the 
                board, such last day is a day on which weather or other 
                conditions make the board or Federal agency 
                inaccessible, in which event the next day that is not a 
                Saturday, Sunday, or legal holiday shall be included.
    ``(C) The procedures may provide for electronic filing and 
dissemination of documents and information required under this 
subsection and in so providing shall consider the ability of all 
parties to achieve electronic access to such documents and records.''.

SEC. 1436. OVERSIGHT OF ACQUISITION OF AUTOMATIC DATA PROCESSING 
              EQUIPMENT BY FEDERAL AGENCIES.

    Section 111 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 759) is amended by adding at the end the following 
new subsection:
    ``(h)(1) The Administrator shall collect and compile data regarding 
the procurement of automatic data processing equipment under this 
section. The data collected and compiled shall include, at a minimum, 
with regard to each procurement the following:
            ``(A) The procuring agency.
            ``(B) The contractor.
            ``(C) The automatic data processing equipment and services 
        procured.
            ``(D) The manufacturer of the equipment procured.
            ``(E) The amount of the contract, to the extent that the 
        amount is not proprietary information.
            ``(F) The type of contract used.
            ``(G) The extent of competition for award.
            ``(H) Compatibility restrictions.
            ``(I) Significant modifications of the contract.
            ``(J) Contract price, to the extent that the price is not 
        proprietary information.
    ``(2) The head of each Federal agency shall report to the 
Administrator in accordance with regulations issued by the 
Administrator all information that the Administrator determines 
necessary in order to satisfy the requirements in paragraph (1).
    ``(3) The Administrator shall--
            ``(A) carry out a systematic, periodic review of 
        information received under this subsection; and
            ``(B) use such information, as appropriate, to determine 
        the compliance of Federal agencies with the requirements of 
        this section.''.

           Subtitle E--Policy, Definitions, and Other Matters

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 1501. CONGRESSIONAL DEFENSE PROCUREMENT POLICY.

    Section 2301 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2301. Congressional defense procurement policy
    ``(a) The Congress finds that in order to ensure national defense 
preparedness; conserve fiscal resources; enhance science and 
technology, research and development, and production capability; 
provide for continued development and preservation of an efficient and 
responsive defense industrial base; and ensure the financial and 
ethical integrity of defense procurement programs, it is in the 
interest of the United States that property and services be acquired 
for the Department of Defense in the most timely, economic, and 
efficient manner consistent with achieving an optimum balance among 
efficient processes, full and open access to the procurement system, 
and sound implementation of socioeconomic policies. It is therefore the 
policy of Congress that--
            ``(1) full and open competitive procedures shall be used by 
        the Department of Defense in accordance with the requirements 
        of this chapter;
            ``(2) to the maximum extent practicable, the Department of 
        Defense shall acquire commercial items to meet its needs and 
        shall require prime contractors and subcontractors, at all 
        levels, which furnish other than commercial items, to 
        incorporate to the maximum extent practicable commercial items 
        as components of items being supplied to the Department;
            ``(3) when commercial items and components are not 
        available, practicable, or cost effective, the Department of 
        Defense shall acquire, and shall require prime contractors and 
        subcontractors to incorporate, nondevelopmental items and 
        components to the maximum extent practicable;
            ``(4) property and services for the Department of Defense 
        may be acquired by any kind of contract, other than cost-plus-
        a-percentage-of-cost contracts, but including multiyear 
        contracts, that will promote the interest of the United States 
        and will provide for appropriate allocation of risk between the 
        Government and the contractor with due regard to the nature of 
        the property or services to be acquired;
            ``(5) contracts, when appropriate, shall provide incentives 
        to contractors to improve productivity through investment in 
        capital facilities, equipment, flexible manufacturing 
        processes, and advanced and dual-use technology;
            ``(6) contracts for advance procurement of components, 
        parts, and materials necessary for manufacture or for logistics 
        support of a weapon system should, if practicable, be entered 
        into in a manner to achieve economic-lot purchases and more 
        efficient production rates;
            ``(7) procurement protests and disputes shall be fairly and 
        expeditiously resolved through uniform interpretation of 
        relevant laws and regulations;
            ``(8) the head of an agency shall use advance procurement 
        planning and market research and develop contract requirements 
        in such a manner as is necessary to obtain full and open 
        competition with due regard to the nature of the property or 
        services to be acquired; but may restrict competitions to 
        suppliers of commercial items to foster accomplishment of the 
        above objective; and
            ``(9) the head of an agency shall develop and maintain an 
        acquisition career management program to ensure a professional 
        acquisition work force in accordance with the requirements of 
        chapter 87 of this title.
    ``(b) Further, it is the policy of Congress that procurement 
policies and procedures for the agencies named in section 2303 of this 
title shall, in accordance with the requirements of this title--
            ``(1) be issued in accordance with and conform to the 
        requirements of sections 22 and 25 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 418b and 421);
            ``(2) promote and implement the Congressional policies in 
        subsection (a) of this section and section 2 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 401);
            ``(3) be implemented to support the requirements of such 
        agencies in time of war or national emergency as well as in 
        peacetime;
            ``(4) promote responsiveness of the procurement system to 
        agency needs by--
                    ``(A) simplifying and streamlining procurement 
                processes; and
                    ``(B) providing incentives to encourage contractors 
                to take actions and make recommendations that would 
                reduce the costs of property or services to be 
                acquired;
            ``(5) facilitate the acquisition of commercial items and 
        commercial components at or based on commercial market prices, 
        without requiring contractors to change their business 
        practices; and
            ``(6) promote the acquisition and use of commercial items, 
        commercial components, and nondevelopmental items by requiring 
        descriptions of agency requirements, whenever practicable, in 
        terms of functions to be performed or performance required.
    ``(c) Further, it is the policy of Congress that 20 percent of the 
purchases and contracts entered into under this chapter should be 
placed with small business concerns and that 5 percent of the purchases 
and contracts entered into under this chapter should be placed with 
concerns that are small disadvantaged businesses.
    ``(d) It is also the policy of Congress that qualified nonprofit 
agencies for the blind or severely handicapped (as defined in section 
2410d(b) of this title) shall be afforded the maximum practicable 
opportunity to provide approved commodities and services (as defined in 
such section) as subcontractors and suppliers under contracts awarded 
by the Department of Defense.''.

SEC. 1502. DEFINITIONS.

    Section 2302 of title 10, United States Code, is amended--
            (1) by striking out paragraphs (3) and (7);
            (2) by redesignating paragraph (6) as paragraph (12);
            (3) by redesignating paragraphs (2), (4), and (5) as 
        paragraphs (5), (8), and (9), respectively;
            (4) by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) The term `procurement' includes all stages of the 
        process of acquiring property or services, beginning with the 
        process for determining a need for property or services and 
        ending with contract completion and closeout.
            ``(3) The term `procurement system' means the integration 
        of the procurement process, the professional development of 
        procurement personnel, and the management structure for 
        carrying out the procurement function.
            ``(4) The term `standards' means the criteria for 
        determining the effectiveness of the procurement system by 
        measuring the performance of the various elements of such 
        system.'';
            (5) by inserting after paragraph (5) (as so redesignated) 
        the following new paragraphs:
            ``(6) The term `full and open competition', when used with 
        respect to a procurement, means that all responsible sources 
        are permitted to submit sealed bids or competitive proposals on 
        the procurement.
            ``(7) The term `responsible source' means a prospective 
        contractor who--
                  ``(A) has adequate financial resources to perform the 
                contract or the ability to obtain such resources;
                  ``(B) is able to comply with the required or proposed 
                delivery or performance schedule, taking into 
                consideration all existing commercial and Government 
                business commitments;
                  ``(C) has a satisfactory performance record;
                  ``(D) has a satisfactory record of integrity and 
                business ethics;
                  ``(E) has the necessary organization, experience, 
                accounting and operational controls, and technical 
                skills, or the ability to obtain such organization, 
                experience, controls, and skills;
                  ``(F) has the necessary production, construction, and 
                technical equipment and facilities, or the ability to 
                obtain such equipment and facilities; and
                  ``(G) is otherwise qualified and eligible, to receive 
                an award under applicable laws and regulations.''; and
            (6) by inserting after paragraph (9) (as so redesignated) 
        the following new paragraphs:
            ``(10) The term `item', `item of supply', or `supplies' 
        means any individual part, component, subassembly, assembly, or 
        subsystem integral to a major system, and other property which 
        may be replaced during the service life of the system, and 
        includes spare parts and replenishment spare parts, but does 
        not include packaging or labeling associated with shipment or 
        identification of an `item'.
            ``(11) The terms `commercial item', `nondevelopmental 
        item', `component', and `commercial component' have the 
        meanings given such terms in section 2281 of this title.''.

SEC. 1503. DELEGATION OF PROCUREMENT FUNCTIONS.

    (a) Consolidation of Delegation Authority.--(1) Section 2311 of 
title 10, United States Code, is amended to read as follows:
``Sec. 2311. Assignment and delegation of procurement functions and 
              responsibilities
    ``(a) In General.--Except to the extent expressly prohibited by 
another provision of law, the head of an agency may delegate, subject 
to his direction, to any other officer or official of that agency, any 
power under this chapter.
    ``(b) Procurements For or With Other Agencies.--Subject to 
subsection (a), to facilitate the procurement of property and services 
covered by this chapter by each agency named in section 2303 of this 
title for any other agency, and to facilitate joint procurement by 
those agencies--
            ``(1) the head of an agency may, within his agency, 
        delegate functions and assign responsibilities relating to 
        procurement;
            ``(2) the heads of two or more agencies may by agreement 
        delegate procurement functions and assign procurement 
        responsibilities from one agency to another of those agencies 
        or to an officer or civilian employee of another of those 
        agencies; and
            ``(3) the heads of two or more agencies may create joint or 
        combined offices to exercise procurement functions and 
        responsibilities.
    ``(c) Approval of Terminations and Reductions of Joint Acquisition 
Programs.--(1) The Secretary of Defense shall prescribe regulations 
that prohibit each military department participating in a joint 
acquisition program approved by the Under Secretary of Defense for 
Acquisition and Technology from terminating or substantially reducing 
its participation in such program without the approval of the Under 
Secretary.
    ``(2) The regulations shall include the following provisions:
            ``(A) A requirement that, before any such termination or 
        substantial reduction in participation is approved, the 
        proposed termination or reduction be reviewed by the Joint 
        Requirements Oversight Council of the Department of Defense.
            ``(B) A provision that authorizes the Under Secretary of 
        Defense for Acquisition and Technology to require a military 
        department whose participation in a joint acquisition program 
        has been approved for termination or substantial reduction to 
        continue to provide some or all of the funding necessary for 
        the acquisition program to be continued in an efficient 
        manner.''.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking out the item relating to section 2311 and 
inserting in lieu thereof the following:

``2311. Assignment and delegation of procurement functions and 
                            responsibilities.''.
    (b) Conforming Repeal.--(1) Section 2308 of title 10, United States 
Code, is repealed.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking out the item related to section 2308.

SEC. 1504. DETERMINATIONS AND DECISIONS.

    Section 2310 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2310. Determinations and decisions
    ``(a) Individual or Class Determinations and Decisions 
Authorized.--Determinations and decisions required to be made under 
this chapter by the head of an agency may be made for an individual 
purchase or contract or, except to the extent expressly prohibited by 
another provision of law, for a class of purchases or contracts. Such 
determinations and decisions are final.
    ``(b) Written Findings Required.--(1) Each determination or 
decision under section 2306(g)(1), 2307(c), or 2313(c) of this title 
shall be based on a written finding by the person making the 
determination or decision. The finding shall set out facts and 
circumstances that support the determination or decision.
    ``(2) Each finding referred to in paragraph (1) shall be final. The 
head of the agency making such finding shall maintain a copy of the 
finding for not less than 6 years after the date of the determination 
or decision.''.

SEC. 1505. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL ACTIONS

    (a) Clarification of Limitation.--Subsection (b) of section 2326 of 
title 10, United States Code, is amended--
            (1) in the subsection caption, by striking out ``and 
        Expenditure'';
            (2) in paragraph (1)(B), by striking out ``or expended'';
            (3) in paragraph (2), by striking out ``expend'' and 
        inserting in lieu thereof ``obligate''; and
            (4) in paragraph (3)--
                    (A) by striking out ``expended'' and inserting in 
                lieu thereof ``obligated''; and
                    (B) by striking out ``expend'' and inserting in 
                lieu thereof ``obligate''.
    (b) Waiver Authority.--Such subsection is further amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4) The head of an agency may waive the provisions of this 
subsection with respect to a contract of that agency if such head of an 
agency determines that the waiver is necessary in order to support a 
contingency operation.''.
    (c) Inapplicability of Restrictions to Contracts Within the 
Simplified Acquisition Threshold.--Subsection (g)(1)(B) of such section 
is amended by striking out ``small purchase threshold'' and inserting 
in lieu thereof ``simplified acquisition threshold''.

SEC. 1506. REPEAL OF REQUIREMENT RELATING TO PRODUCTION SPECIAL TOOLING 
              AND PRODUCTION SPECIAL TEST EQUIPMENT.

    (a) Repeal.--Section 2329 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 137 of such title is amended by striking out the item related 
to section 2329.

SEC. 1507. REGULATIONS FOR BIDS.

    Section 2381(a) of title 10, United States Code, is amended by 
striking out ``(a) The Secretary'' and all that follows through the end 
of paragraph (1) and inserting in lieu thereof the following:
    ``(a) The Secretary of Defense or the Secretary of a military 
department may--
            ``(1) prescribe regulations for the preparation, 
        submission, and opening of bids for contracts; and''.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 1551. DEFINITIONS.

    (a) Additional Terms.--Section 309 of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 259) is amended by 
adding at the end the following new subsection:
    ``(d) The terms `commercial item', `nondevelopmental item', 
`component', and `commercial component' have the same meanings provided 
such terms in section 315 of this title.''.
    (b) Conforming Amendments.--Section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403) is amended--
            (1) by striking out ``Act--''and inserting in lieu thereof 
        ``Act:'';
            (2) by capitalizing the initial letter in the first word of 
        each paragraph;
            (3) by striking out the semicolon at the end of each of 
        paragraphs (1), (2), (3), (5), (6), (7), (8), and (9) and 
        inserting in lieu thereof a period; and
            (4) in paragraphs (4) and (10), by striking out ``; and'' 
        at the end and inserting in lieu thereof a period.

SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1301, is further 
amended by adding at the end the following new section:

``SEC. 312. ASSIGNMENT AND DELEGATION OF PROCUREMENT FUNCTIONS AND 
              RESPONSIBILITIES.

    ``(a) In General.--Except to the extent expressly prohibited by 
another provision of law, an agency head may delegate, subject to his 
direction, to any other officer or official of that agency, any power 
under this title.
    ``(b) Procurements For or With Other Agencies.--Subject to 
subsection (a), to facilitate the procurement of property and services 
covered by this title by each executive agency for any other executive 
agency, and to facilitate joint procurement by those executive 
agencies--
            ``(1) an agency head may, within his executive agency, 
        delegate functions and assign responsibilities relating to 
        procurement;
            ``(2) the heads of two or more executive agencies may by 
        agreement delegate procurement functions and assign procurement 
        responsibilities from one executive agency to another of those 
        executive agencies or to an officer or civilian employee of 
        another of those executive agencies; and
            ``(3) the heads of two or more executive agencies may 
        create joint or combined offices to exercise procurement 
        functions and responsibilities.''.

SEC. 1553. DETERMINATIONS AND DECISIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1552, is further 
amended by adding at the end the following new section:

``SEC. 313. DETERMINATIONS AND DECISIONS.

    ``(a) Individual or Class Determinations and Decisions 
Authorized.--Determinations and decisions required to be made under 
this title by an agency head may be made for an individual purchase or 
contract or, except to the extent expressly prohibited by another 
provision of law, for a class of purchases or contracts. Such 
determinations and decisions are final.
    ``(b) Written Findings Required.--(1) Each determination under 
section 305(c) shall be based on a written finding by the person making 
the determination or decision. The finding shall set out facts and 
circumstances that support the determination or decision.
    ``(2) Each finding referred to in paragraph (1) shall be final. The 
agency head making such finding shall maintain a copy of the finding 
for not less 6 years after the date of the determination or 
decision.''.

SEC. 1554. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL ACTIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1553, is further 
amended by adding at the end the following new section:

``SEC. 314. UNDEFINITIZED CONTRACTUAL ACTIONS: RESTRICTIONS.

    ``(a) In General.--An agency head may not enter into an 
undefinitized contractual action unless the request to the agency head 
for authorization of the contractual action includes a description of 
the anticipated effect on requirements of the executive agency 
concerned if a delay is incurred for purposes of determining 
contractual terms, specifications, and price before performance is 
begun under the contractual action.
    ``(b) Limitations on Obligations of Funds.--(1) A contracting 
officer of an executive agency may not enter into an undefinitized 
contractual action unless the contractual action provides for agreement 
upon contractual terms, specifications, and price by the earlier of--
            ``(A) the end of the 180-day period beginning on the date 
        on which the contractor submits a qualifying proposal (as 
        defined in subsection (f)) to definitize the contractual terms, 
        specifications, and price; or
            ``(B) the date on which the amount of funds obligated under 
        the contractual action is equal to more than 50 percent of the 
        negotiated overall ceiling price for the contractual action.
    ``(2) Except as provided in paragraph (3), the contracting officer 
for an undefinitized contractual action may not obligate with respect 
to such contractual action an amount that is equal to more than 50 
percent of the negotiated overall ceiling price until the contractual 
terms, specifications, and price are definitized for such contractual 
action.
    ``(3) If a contractor submits a qualifying proposal (as defined in 
subsection (f)) to definitize an undefinitized contractual action 
before an amount equal to more than 50 percent of the negotiated 
overall ceiling price is obligated on such action, the contracting 
officer for such action may not obligate with respect to such 
contractual action an amount that is equal to more than 75 percent of 
the negotiated overall ceiling price until the contractual terms, 
specifications, and price are definitized for such contractual action.
    ``(4) This subsection does not apply to an undefinitized 
contractual action for the purchase of initial spares.
    ``(c) Inclusion of Non-Urgent Requirements.--Requirements for spare 
parts and support equipment that are not needed on an urgent basis may 
not be included in an undefinitized contractual action for spare parts 
and support equipment that are needed on an urgent basis unless the 
agency head approves such inclusion as being--
            ``(1) good business practice; and
            ``(2) in the best interests of the United States.
    ``(d) Modification of Scope.--The scope of an undefinitized 
contractual action under which performance has begun may not be 
modified unless the agency head approves such modification as being--
            ``(1) good business practice; and
            ``(2) in the best interests of the United States.
    ``(e) Allowable Profit.--An agency head shall ensure that the 
profit allowed on an undefinitized contractual action for which the 
final price is negotiated after a substantial portion of the 
performance required is completed reflects--
            ``(1) the possible reduced cost risk of the contractor with 
        respect to costs incurred during performance of the contract 
        before the final price is negotiated; and
            ``(2) the reduced cost risk of the contractor with respect 
        to costs incurred during performance of the remaining portion 
        of the contract.
    ``(f) Definitions.--In this section:
            ``(1) The term `undefinitized contractual action' means a 
        new procurement action entered into by an agency head for which 
        the contractual terms, specifications, or price are not agreed 
        upon before performance is begun under the action. Such term 
        does not include contractual actions with respect to the 
        following:
                    ``(A) Purchases in an amount not in excess of the 
                amount of the simplified acquisition threshold.
                    ``(B) Congressionally mandated long-lead 
                procurement contracts.
            ``(2) The term `qualifying proposal' means a proposal that 
        contains sufficient information to enable the agency head 
        concerned to conduct complete and meaningful audits of the 
        information contained in the proposal and of any other 
        information that the agency head is entitled to review in 
        connection with the contract, as determined by the contracting 
        officer.''.

                   TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2001. CONTRACT FINANCING.

    (a) Reorganization of Principal Authority Provision.--Section 2307 
of title 10, United States Code, is amended--
            (1) by striking out the section heading and inserting in 
        lieu thereof the following:
``Sec. 2307. Contract financing'';
            (2) by inserting ``Payment Authority.--'' after ``(a)'' in 
        subsection (a);
            (3) by inserting ``Payment Amount.--'' after ``(b)'' in 
        subsection (b);
            (4) by inserting ``Security for Advance Payments.--'' after 
        ``(c)'' in subsection (c);
            (5) by inserting ``Conditions for Progress Payments.--'' 
        after ``(d)'' in subsection (d)''; and
            (6) by striking out ``(e)(1) In any case'' and inserting in 
        lieu thereof ``(g) Action in Case of Fraud.--(1) In any case''.
    (b) Terminology Correction.--Such section is further amended in 
subsection (a)(2) by striking out ``bid''.
    (c) Effective Date of Lien Related to Advance Payments.--Such 
section is further amended in subsection (c) by inserting before the 
period at the end of the third sentence the following: ``and is 
effective immediately upon the first advancement of funds without 
filing, notice, or any other action by the United States''.
    (d) Conditions for Progress Payments.--Such section is further 
amended in subsection (d)--
            (1) in the first sentence of paragraph (1), by striking out 
        ``work, which'' and all that follows through ``accomplished'' 
        and inserting in lieu thereof ``work accomplished that meets 
        standards established under the contract''; and
            (2) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
    ``(3) This subsection applies to a contract for an amount equal to 
or greater than the simplified acquisition threshold.''.
    (e) Conditions for Payments for Commercial Items.--Such section is 
further amended by inserting after subsection (d) the following new 
subsection (e):
    ``(e) Conditions for Payments for Commercial Items.--(1) Payments 
under subsection (a) for commercial items, as that term is defined in 
section 2281 of this title, may be made under such terms and conditions 
as the head of the agency determines are appropriate or customary in 
the commercial marketplace. The head of the agency shall obtain 
adequate security for such payments. If the security is in the form of 
a lien in favor of the United States, such lien is paramount to all 
other liens and is effective immediately upon the first payment, 
without filing, notice, or other action by the United States.
    ``(2) Advance payments made under subsection (a) for commercial 
items may include payments, in a total amount of not more than 15 
percent of the contract price, in advance of any performance of work 
under the contract.
    ``(3) The conditions of subsections (c) and (d) do not apply to 
payments made for commercial items in accordance with this 
subsection.''.
    (f) Navy Contracts.--Such section is further amended by inserting 
after subsection (e) the following new subsection (f):
    ``(f) Certain Navy Contracts.--(1) The Secretary of the Navy shall 
provide that the rate for progress payments on any contract awarded by 
the Secretary for repair, maintenance, or overhaul of a naval vessel 
shall be not less than--
            ``(A) 95 percent, in the case of firms considered to be 
        small businesses; and
            ``(B) 90 percent, in the case of all other firms.
    ``(2) The Secretary of the Navy may advance to private salvage 
companies such funds as the Secretary considers necessary to provide 
for the immediate financing of salvage operations. Advances under this 
paragraph shall be made on terms that the Secretary considers adequate 
for the protection of the United States.
    ``(3) The Secretary of the Navy shall ensure that, when partial, 
progress, or other payments are made under a contract for construction 
or conversion of a naval vessel, the United States is secured by a lien 
upon work in progress and on property acquired for performance of the 
contract on account of all payments so made. The lien is paramount to 
all other liens.''.
    (g) Clerical Amendment.--The table of sections at the beginning of 
chapter 137 of title 10, United States Code, is amended by striking out 
the item relating to section 2307 and inserting in lieu thereof the 
following:

``2307. Contract financing.''.
    (h) Repeal of Superseded Provisions.--
            (1) Progress payments under certain navy contracts.--
                    (A) Repeal.--Section 7312 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 633 of such title is amended 
                by striking out the item relating to section 7312.
            (2) Advancement of payments for navy salvage operations.--
                    (A) Repeal.--Section 7364 of such title is 
                repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 637 of such title is amended 
                by striking out the item relating to section 7364.
            (3) Partial payments under navy contracts--
                    (A) Repeal.--Section 7521 of such title is 
                repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 645 of such title is amended 
                by striking out the item relating to section 7521.
            (4) Navy research contracts.--Section 7522 of title 10, 
        United States Code, is amended--
                    (A) by striking out subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b).

SEC. 2002. REPEAL OF VOUCHERING PROCEDURES SECTION.

    (a) Repeal.--Section 2355 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking out the item relating 
to section 2355.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2051. CONTRACT FINANCING.

    (a) Reorganization of Principal Authority Provision.--Section 305 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 255) is amended--
            (1) by striking out the section heading and the section 
        designation and inserting in lieu thereof the following:

``SEC. 305. CONTRACT FINANCING.'';

            (2) by inserting ``Payment Authority.--'' after ``(a)'' in 
        subsection (a);
            (3) by inserting ``Payment Amount.--'' after ``(b)'' in 
        subsection (b); and
            (4) by inserting ``Security for Advance Payments.--'' after 
        ``(c)'' in subsection (c).
    (b) Terminology Correction.--Such section is further amended in 
subsection (a)(2) by striking out ``bid''.
    (c) Effective Date of Lien Related to Advance Payments.--Such 
section is further amended in subsection (c) by inserting before the 
period at the end of the third sentence the following: ``and is 
effective immediately upon the first advancement of funds without 
filing, notice, or any other action by the United States''.
    (d) Revision of Civilian Agency Provision To Ensure Uniform 
Requirements for Progress Payments.--
            (1) In general.--Such section is further amended by adding 
        at the end the following new subsections:
    ``(d) Conditions for Progress Payments.--(1) The agency head shall 
ensure that any payment for work in progress (including materials, 
labor, and other items) under a contract of an executive agency that 
provides for such payments is commensurate with the work accomplished 
that meets standards established under the contract. The contractor 
shall provide such information and evidence as the agency head 
determines necessary to permit the agency head to carry out the 
preceding sentence.
    ``(2) The agency head shall ensure that progress payments referred 
to in paragraph (1) are not made for more than 80 percent of the work 
accomplished under the contract so long as the agency head has not made 
the contractual terms, specifications, and price definite.
    ``(3) This subsection applies to a contract for an amount equal to 
or greater than the simplified acquisition threshold.
    ``(e) Conditions for Payments for Commercial Items.--(1) Payments 
under subsection (a) for commercial items, as that term is defined in 
section 315 of this title, may be made under such terms and conditions 
as the head of the agency determines are appropriate or customary in 
the commercial marketplace. The head of the agency shall obtain 
adequate security for such payments. If the security is in the form of 
a lien in favor of the United States, such lien is paramount to all 
other liens and is effective immediately upon the first payment, 
without filing, notice, or other action by the United States.
    ``(2) Advance payments made under subsection (a) for commercial 
items may include payments, in a total amount of not more than 15 
percent of the contract price, in advance of any performance of work 
under the contract.
    ``(3) The conditions of subsections (c) and (d) do not apply to 
payments made for commercial items in accordance with this subsection.
    ``(f) Action in Case of Fraud.--(1) In any case in which the remedy 
coordination official of an executive agency finds that there is 
substantial evidence that the request of a contractor for advance, 
partial, or progress payment under a contract awarded by that executive 
agency is based on fraud, the remedy coordination official shall 
recommend that the agency head reduce or suspend further payments to 
such contractor.
    ``(2) An agency head receiving a recommendation under paragraph (1) 
in the case of a contractor's request for payment under a contract 
shall determine whether there is substantial evidence that the request 
is based on fraud. Upon making such a determination, the agency head 
may reduce or suspend further payments to the contractor under such 
contract.
    ``(3) The extent of any reduction or suspension of payments by an 
agency head under paragraph (2) on the basis of fraud shall be 
reasonably commensurate with the anticipated loss to the United States 
resulting from the fraud.
    ``(4) A written justification for each decision of the agency head 
whether to reduce or suspend payments under paragraph (2), and for each 
recommendation received by the agency head in connection with such 
decision, shall be prepared and be retained in the files of the 
executive agency.
    ``(5) Each agency head shall prescribe procedures to ensure that, 
before the agency head decides to reduce or suspend payments in the 
case of a contractor under paragraph (2), the contractor is afforded 
notice of the proposed reduction or suspension and an opportunity to 
submit matters to the head of the agency in response to such proposed 
reduction or suspension.
    ``(6) Not later than 180 days after the date on which an agency 
head reduces or suspends payments to a contractor under paragraph (2), 
the remedy coordination official of the executive agency shall--
            ``(A) review the determination of fraud on which the 
        reduction or suspension is based; and
            ``(B) transmit a recommendation to the agency head whether 
        the suspension or reduction should continue.
    ``(7) Each agency head who receives recommendations made by a 
remedy coordination official of the executive agency to reduce or 
suspend payments under paragraph (2) during a fiscal year shall prepare 
for such year a report that contains the recommendations, the actions 
taken on the recommendations and the reasons for such actions, and an 
assessment of the effects of such actions on the Federal Government. 
Any such report shall be available to any Member of Congress upon 
request.
    ``(8) An agency head may not delegate responsibilities under this 
subsection to any person in a position below level IV of the Executive 
Schedule.
    ``(9) In this subsection, the term `remedy coordination official', 
with respect to an executive agency, means the person or entity in that 
executive agency who coordinates within that executive agency the 
administration of criminal, civil, administrative, and contractual 
remedies resulting from investigations of fraud or corruption related 
to procurement activities.''.
            (2) Relationship to prompt payment requirements.--The 
        amendments made by paragraph (1) are not intended to impair or 
        modify procedures required by the provisions of chapter 39 of 
        title 31, United States Code, and the regulations issued 
        pursuant to such provisions of law, that relate to progress 
        payment requests, as such procedures are in effect on the date 
        of the enactment of this Act.

                    PART III--ACQUISITIONS GENERALLY

SEC. 2061. INTEREST PENALTY ON CONTRACT CLOSE-OUT LAG-TIME.

    Section 3903(a)(1) of title 31, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by inserting ``or'' after the semicolon at the end of 
        subparagraph (B); and
            (3) by adding at the end the following new subparagraph:
                    ``(C) in any case in which the Government delays 
                making final payment under the contract for more than 
                one year after the date on which the last item of 
                property is delivered or final performance of the 
                services is completed under the contract, the date on 
                which such last delivery is made or service 
                completed;''.

                      Subtitle B--Cost Principles

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2101. ALLOWABLE CONTRACT COSTS.

    (a) Comptroller General Evaluation.--Subsection (l) of section 2324 
of title 10, United States Code, is amended to read as follows:
    ``(l) The Comptroller General shall periodically evaluate the 
implementation of this section by the Secretary of Defense. Such 
evaluation shall consider the extent to which--
            ``(1) the implementation is consistent with congressional 
        intent;
            ``(2) the implementation achieves the objective of 
        eliminating unallowable costs charged to covered contracts; and
            ``(3) the implementation (as well as the provisions of this 
        section and the regulations prescribed under this section) 
        could be improved or strengthened.''.
    (b) Covered Contract Defined.--Subsection (m) of such section is 
amended to read as follows:
    ``(m) In this section, the term `covered contract' means a contract 
for an amount in excess of $500,000 that is entered into by the 
Department of Defense, except that such term does not include a fixed-
price contract without cost incentives or any contract for the purchase 
of commercial items (as defined in section 2281 of this title).''.

SEC. 2102. REPEAL OF CONTRACT PROFIT CONTROLS DURING EMERGENCY PERIODS.

    (a) Repeal.--Section 2382 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by striking out the item relating 
to section 2382.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2151. ALLOWABLE CONTRACT COSTS.

    Section 306 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 256) is amended to read as follows:

``SEC. 306. ALLOWABLE COSTS.

    ``(a) Indirect Cost That Violates a FAR Cost Principle.--The head 
of an executive agency shall require that a covered contract provide 
that if the contractor submits to the executive agency a proposal for 
settlement of indirect costs incurred by the contractor for any period 
after such costs have been accrued and if that proposal includes the 
submission of a cost which is unallowable because the cost violates a 
cost principle in the Federal Acquisition Regulation (referred to in 
section 25(c)(1) of the Office of Federal Procurement Policy Act (41 
U.S.C. 421(c)(1)) or an executive agency's supplement to the Federal 
Acquisition Regulation, the cost shall be disallowed.
    ``(b) Penalty for Violation of Cost Principle.--(1) If the agency 
head determines that a cost submitted by a contractor in its proposal 
for settlement is expressly unallowable under a cost principle referred 
to in subsection (a) that defines the allowability of specific selected 
costs, the agency head shall assess a penalty against the contractor in 
an amount equal to--
            ``(A) the amount of the disallowed cost allocated to 
        covered contracts for which a proposal for settlement of 
        indirect costs has been submitted; plus
            ``(B) interest (to be computed based on provisions in the 
        Federal Acquisition Regulation) to compensate the United States 
        for the use of any funds which a contractor has been paid in 
        excess of the amount to which the contractor was entitled.
    ``(2) If the agency head determines that a proposal for settlement 
of indirect costs submitted by a contractor includes a cost determined 
to be unallowable in the case of such contractor before the submission 
of such proposal, the agency head shall assess a penalty against the 
contractor in an amount equal to two times the amount of the disallowed 
cost allocated to covered contracts for which a proposal for settlement 
of indirect costs has been submitted.
    ``(c) Waiver of Penalty.--The Federal Acquisition Regulation shall 
provide for a penalty under subsection (b) to be waived in the case of 
a contractor's proposal for settlement of indirect costs when--
            ``(1) the contractor withdraws the proposal before the 
        formal initiation of an audit of the proposal by the Federal 
        Government and resubmits a revised proposal;
            ``(2) the amount of unallowable costs subject to the 
        penalty is insignificant; or
            ``(3) the contractor demonstrates, to the contracting 
        officer's satisfaction, that--
                    ``(A) it has established appropriate policies and 
                personnel training and an internal control and review 
                system that provide assurances that unallowable costs 
                subject to penalties are precluded from being included 
                in the contractor's proposal for settlement of indirect 
                costs; and
                    ``(B) the unallowable costs subject to the penalty 
                were inadvertently incorporated into the proposal.
    ``(d) Applicability of Contract Disputes Procedure to Disallowance 
of Cost and Assessment of Penalty.--An action of an agency head under 
subsection (a) or (b)--
            ``(1) shall be considered a final decision for the purposes 
        of section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 
        605); and
            ``(2) is appealable in the manner provided in section 7 of 
        such Act.
    ``(e) Specific Costs Not Allowable.--(1) The following costs are 
not allowable under a covered contract:
            ``(A) Costs of entertainment, including amusement, 
        diversion, and social activities, and any costs directly 
        associated with such costs (such as tickets to shows or sports 
        events, meals, lodging, rentals, transportation, and 
        gratuities).
            ``(B) Costs incurred to influence (directly or indirectly) 
        legislative action on any matter pending before Congress or a 
        State legislature.
            ``(C) Costs incurred in defense of any civil or criminal 
        fraud proceeding or similar proceeding (including filing of any 
        false certification) brought by the United States where the 
        contractor is found liable or had pleaded nolo contendere to a 
        charge of fraud or similar proceeding (including filing of a 
        false certification).
            ``(D) Payments of fines and penalties resulting from 
        violations of, or failure to comply with, Federal, State, 
        local, or foreign laws and regulations, except when incurred as 
        a result of compliance with specific terms and conditions of 
        the contract or specific written instructions from the 
        contracting officer authorizing in advance such payments in 
        accordance with applicable provisions of the Federal 
        Acquisition Regulation.
            ``(E) Costs of membership in any social, dining, or country 
        club or organization.
            ``(F) Costs of alcoholic beverages.
            ``(G) Contributions or donations, regardless of the 
        recipient.
            ``(H) Costs of advertising designed to promote the 
        contractor or its products.
            ``(I) Costs of promotional items and memorabilia, including 
        models, gifts, and souvenirs.
            ``(J) Costs for travel by commercial aircraft which exceed 
        the amount of the standard commercial fare.
            ``(K) Costs incurred in making any payment (commonly known 
        as a `golden parachute payment') which is--
                    ``(i) in an amount in excess of the normal 
                severance pay paid by the contractor to an employee 
                upon termination of employment; and
                    ``(ii) is paid to the employee contingent upon, and 
                following, a change in management control over, or 
                ownership of, the contractor or a substantial portion 
                of the contractor's assets.
            ``(L) Costs of commercial insurance that protects against 
        the costs of the contractor for correction of the contractor's 
        own defects in materials or workmanship.
            ``(M) Costs of severance pay paid by the contractor to 
        foreign nationals employed by the contractor under a service 
        contract performed outside the United States, to the extent 
        that the amount of severance pay paid in any case exceeds the 
        amount paid in the industry involved under the customary or 
        prevailing practice for firms in that industry providing 
        similar services in the United States, as determined under the 
        Federal Acquisition Regulation.
            ``(N) Costs of severance pay paid by the contractor to a 
        foreign national employed by the contractor under a service 
        contract performed in a foreign country if the termination of 
        the employment of the foreign national is the result of the 
        closing of, or the curtailment of activities at, a United 
        States facility in that country at the request of the 
        government of that country.
            ``(O) Costs incurred by a contractor in connection with any 
        criminal, civil, or administrative proceeding commenced by the 
        United States or a State, to the extent provided in subsection 
        (k).
    ``(2)(A) Pursuant to the Federal Acquisition Regulation and subject 
to the availability of appropriations, the agency head, in awarding a 
covered contract, may waive the application of the provisions of 
paragraphs (1)(M) and (1)(N) to that contract if the agency head 
determines that--
            ``(i) the application of such provisions to the contract 
        would adversely affect the continuation of a program, project, 
        or activity that provides significant support services for 
        employees of the executive agency posted outside the United 
        States;
            ``(ii) the contractor has taken (or has established plans 
        to take) appropriate actions within the contractor's control to 
        minimize the amount and number of incidents of the payment of 
        severance pay by the contractor to employees under the contract 
        who are foreign nationals; and
            ``(iii) the payment of severance pay is necessary in order 
        to comply with a law that is generally applicable to a 
        significant number of businesses in the country in which the 
        foreign national receiving the payment performed services under 
        the contract or is necessary to comply with a collective 
        bargaining agreement.
    ``(B) The head of the executive agency concerned shall include in 
the solicitation for a covered contract a statement indicating--
            ``(i) that a waiver has been granted under subparagraph (A) 
        for the contract; or
            ``(ii) whether the agency head will consider granting such 
        a waiver, and, if the agency head will consider granting a 
        waiver, the criteria to be used in granting the waiver.
    ``(C) The agency head shall make the final determination regarding 
whether to grant a waiver under subparagraph (A) with respect to a 
covered contract before award of the contract.
    ``(3) The provisions of the Federal Acquisition Regulation 
implementing this section may establish appropriate definitions, 
exclusions, limitations, and qualifications.
    ``(f) Required Regulations.--(1) The Federal Acquisition Regulation 
shall contain provisions on the allowability of contractor costs. Such 
provisions shall define in detail and in specific terms those costs 
which are unallowable, in whole or in part, under covered contracts. 
The regulations shall, at a minimum, clarify the cost principles 
applicable to contractor costs of the following:
            ``(A) Air shows.
            ``(B) Membership in civic, community, and professional 
        organizations.
            ``(C) Recruitment.
            ``(D) Employee morale and welfare.
            ``(E) Actions to influence (directly or indirectly) 
        executive branch action on regulatory and contract matters 
        (other than costs incurred in regard to contract proposals 
        pursuant to solicited or unsolicited bids).
            ``(F) Community relations.
            ``(G) Dining facilities.
            ``(H) Professional and consulting services, including legal 
        services.
            ``(I) Compensation.
            ``(J) Selling and marketing.
            ``(K) Travel.
            ``(L) Public relations.
            ``(M) Hotel and meal expenses.
            ``(N) Expense of corporate aircraft.
            ``(O) Company-furnished automobiles.
            ``(P) Advertising.
    ``(2) The Federal Acquisition Regulation shall require that a 
contracting officer not resolve any questioned costs until the 
contracting officer has obtained--
            ``(A) adequate documentation with respect to such costs; 
        and
            ``(B) the opinion of the executive agency's contract 
        auditor on the allowability of such costs.
    ``(3) The Federal Acquisition Regulation shall provide that, to the 
maximum extent practicable, an executive agency's contract auditor be 
present at any negotiation or meeting with the contractor regarding a 
determination of the allowability of indirect costs of the contractor.
    ``(4) The Federal Acquisition Regulation shall require that all 
categories of costs designated in the report of an executive agency's 
contract auditor as questioned with respect to a proposal for 
settlement be resolved in such a manner that the amount of the 
individual questioned costs that are paid will be reflected in the 
settlement.
    ``(g) Applicability of Regulations to Subcontractors.--The 
regulations referred to in subsections (e) and (f)(1) shall require, to 
the maximum extent practicable, that such regulations apply to all 
subcontractors of a covered contract.
    ``(h) Contractor Certification Required.--(1) A proposal for 
settlement of indirect costs applicable to a covered contract shall 
include a certification by an official of the contractor that, to the 
best of the certifying official's knowledge and belief, all indirect 
costs included in the proposal are allowable. Any such certification 
shall be in a form prescribed in the Federal Acquisition Regulation.
    ``(2) The agency head concerned may, in an exceptional case, waive 
the requirement for certification under paragraph (1) in the case of 
any contract if the agency head--
            ``(A) determines in such case that it would be in the 
        interest of the United States to waive such certification; and
            ``(B) states in writing the reasons for that determination 
        and makes such determination available to the public.
    ``(i) Penalties for Submission of Cost Known as Not Allowable.--The 
submission to an executive agency of a proposal for settlement of costs 
for any period after such costs have been accrued that includes a cost 
that is expressly specified by statute or regulation as being 
unallowable, with the knowledge that such cost is unallowable, shall be 
subject to the provisions of section 287 of title 18, United States 
Code, and section 3729 of title 31, United States Code.
    ``(j) Contractor To Have Burden of Proof.--In a proceeding before a 
board of contract appeals, the United States Court of Federal Claims, 
or any other Federal court in which the reasonableness of indirect 
costs for which a contractor seeks reimbursement from the United States 
is in issue, the burden of proof shall be upon the contractor to 
establish that those costs are reasonable.
    ``(k) Proceeding Costs Not Allowable.--(1) Except as otherwise 
provided in this subsection, costs incurred by a contractor in 
connection with any criminal, civil, or administrative proceeding 
commenced by the United States or a State are not allowable as 
reimbursable costs under a covered contract if the proceeding (A) 
relates to a violation of, or failure to comply with, a Federal or 
State statute or regulation, and (B) results in a disposition described 
in paragraph (2).
    ``(2) A disposition referred to in paragraph (1)(B) is any of the 
following:
            ``(A) In the case of a criminal proceeding, a conviction 
        (including a conviction pursuant to a plea of nolo contendere) 
        by reason of the violation or failure referred to in paragraph 
        (1).
            ``(B) In the case of a civil or administrative proceeding 
        involving an allegation of fraud or similar misconduct, a 
        determination of contractor liability on the basis of the 
        violation or failure referred to in paragraph (1).
            ``(C) In the case of any civil or administrative 
        proceeding, the imposition of a monetary penalty by reason of 
        the violation or failure referred to in paragraph (1).
            ``(D) A final decision--
                    ``(i) to debar or suspend the contractor,
                    ``(ii) to rescind or void the contract, or
                    ``(iii) to terminate the contract for default,
        by reason of the violation or failure referred to in paragraph 
        (1).
            ``(E) A disposition of the proceeding by consent or 
        compromise if such action could have resulted in a disposition 
        described in subparagraph (A), (B), (C), or (D).
    ``(3) In the case of a proceeding referred to in paragraph (1) that 
is commenced by the United States and is resolved by consent or 
compromise pursuant to an agreement entered into by a contractor and 
the United States, the costs incurred by the contractor in connection 
with such proceeding that are otherwise not allowable as reimbursable 
costs under such paragraph may be allowed to the extent specifically 
provided in such agreement.
    ``(4) In the case of a proceeding referred to in paragraph (1) that 
is commenced by a State, the agency head that awarded the covered 
contract involved in the proceeding may allow the costs incurred by the 
contractor in connection with such proceeding as reimbursable costs if 
the agency head determines, in accordance with the Federal Acquisition 
Regulation, that the costs were incurred as a result of (A) a specific 
term or condition of the contract, or (B) specific written instructions 
of the agency.
    ``(5)(A) Except as provided in subparagraph (C), costs incurred by 
a contractor in connection with a criminal, civil, or administrative 
proceeding commenced by the United States or a State in connection with 
a covered contract may be allowed as reimbursable costs under the 
contract if such costs are not disallowable under paragraph (1), but 
only to the extent provided in subparagraph (B).
    ``(B)(i) The amount of the costs allowable under subparagraph (A) 
in any case may not exceed the amount equal to 80 percent of the amount 
of the costs incurred, to the extent that such costs are determined to 
be otherwise allowable and allocable under the Federal Acquisition 
Regulation.
    ``(ii) Regulations issued for the purpose of clause (i) shall 
provide for appropriate consideration of the complexity of procurement 
litigation, generally accepted principles governing the award of legal 
fees in civil actions involving the United States as a party, and such 
other factors as may be appropriate.
    ``(C) In the case of a proceeding referred to in subparagraph (A), 
contractor costs otherwise allowable as reimbursable costs under this 
paragraph are not allowable if (i) such proceeding involves the same 
contractor misconduct alleged as the basis of another criminal, civil, 
or administrative proceeding, and (ii) the costs of such other 
proceeding are not allowable under paragraph (1).
    ``(6) In this subsection:
            ``(A) The term `proceeding' includes an investigation.
            ``(B) The term `costs', with respect to a proceeding--
                    ``(i) means all costs incurred by a contractor, 
                whether before or after the commencement of any such 
                proceeding; and
                    ``(ii) includes--
                            ``(I) administrative and clerical expenses;
                            ``(II) the cost of legal services, 
                        including legal services performed by an 
                        employee of the contractor;
                            ``(III) the cost of the services of 
                        accountants and consultants retained by the 
                        contractor; and
                            ``(IV) the pay of directors, officers, and 
                        employees of the contractor for time devoted by 
                        such directors, officers, and employees to such 
                        proceeding.
            ``(C) The term `penalty' does not include restitution, 
        reimbursement, or compensatory damages.
    ``(l) Periodic Evaluation of Implementation.--(1) The Comptroller 
General shall periodically evaluate the implementation of this section 
by the heads of executive agencies. Such evaluation shall consider the 
extent to which--
            ``(A) the implementation is consistent with congressional 
        intent;
            ``(B) the implementation achieves the objective of 
        eliminating unallowable costs charged to covered contracts; and
            ``(C) the implementation (as well as the provisions of this 
        section and the regulations prescribed under this section) 
        could be improved or strengthened.
    ``(2) The Comptroller General shall submit to the Committees on 
Governmental Affairs and on Appropriations of the Senate and the 
Committees on Government Operation and on Appropriations of the House 
of Representatives a report on such evaluation not later than 180 days 
after publication in the Federal Register of revisions to the Federal 
Acquisition Regulation that make substantive changes in provisions of 
the Federal Acquisition Regulation pertaining to allowable costs under 
covered contracts.
    ``(m) Covered Contract Defined.--In this section, the term `covered 
contract' means a contract for an amount in excess of $500,000 that is 
entered into by an executive agency, except that such term does not 
include a fixed-price contract without cost incentives or any contract 
for the purchase of commercial items (as defined in section 315 of this 
title).''.

                    PART III--ACQUISITIONS GENERALLY

SEC. 2161. TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS.

    Section 24(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 420) is amended by inserting after ``Under any contract'' the 
following: ``requiring submission of cost or pricing data or the 
negotiation of final indirect costs''.

                Subtitle C--Audit and Access to Records

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2201. CONSOLIDATION AND REVISION OF AUTHORITY TO EXAMINE RECORDS 
              OF CONTRACTORS.

    (a) Authority.--
            (1) In general.--Section 2313 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 2313. Examination of records of contractor
    ``(a) Agency Authority.--The head of an agency, acting through an 
authorized representative--
            ``(1) is entitled to inspect the plant and audit the 
        records of--
                    ``(A) a contractor performing a cost-reimbursement, 
                incentive, time-and-materials, labor-hour, or price-
                redeterminable contract, or any combination of such 
                contracts, made by that agency under this chapter; and
                    ``(B) a subcontractor performing any subcontract 
                under such a contract or combination of contracts; and
            ``(2) shall, for the purpose of evaluating the accuracy, 
        completeness, and currency of cost or pricing data required to 
        be submitted pursuant to section 2306a of this title with 
        respect to a contract or subcontract, have the right to examine 
        all records of the contractor or subcontractor related to--
                    ``(A) the proposal for the contract or subcontract;
                    ``(B) the discussions conducted on the proposal;
                    ``(C) pricing of the contract or subcontract; or
                    ``(D) performance of the contract or subcontract.
    ``(b) Subpoena Power.--(1) The Director of the Defense Contract 
Audit Agency (or any successor agency) may require by subpoena the 
production of any records of a contractor that the Secretary of Defense 
is authorized to audit or examine under subsection (a).
    ``(2) Any such subpoena, in the case of contumacy or refusal to 
obey, shall be enforceable by order of an appropriate United States 
district court.
    ``(3) The authority provided by paragraph (1) may not be 
redelegated.
    ``(4) The Director (or any successor official) shall submit an 
annual report to the Secretary of Defense on the exercise of such 
authority during the preceding year and the reasons why such authority 
was exercised in any instance. The Secretary shall forward a copy of 
each such report to the Committees on Armed Services of the Senate and 
House of Representatives.
    ``(c) Comptroller General Authority.--(1) Except as provided in 
paragraph (2), each contract awarded after using procedures other than 
sealed bid procedures shall provide that the Comptroller General and 
his representatives are entitled to examine any records of the 
contractor, or any of its subcontractors, that directly pertain to, and 
involve transactions relating to, the contract or subcontract.
    ``(2) Paragraph (1) does not apply to a contract or subcontract 
with a foreign contractor or foreign subcontractor if the head of the 
agency concerned determines, with the concurrence of the Comptroller 
General or his designee, that the application of that paragraph to the 
contract or subcontract would not be in the public interest. However, 
the concurrence of the Comptroller General or his designee is not 
required--
            ``(A) where the contractor or subcontractor is a foreign 
        government or agency thereof or is precluded by the laws of the 
        country involved from making its records available for 
        examination; and
            ``(B) where the head of the agency determines, after taking 
        into account the price and availability of the property and 
        services from United States sources, that the public interest 
        would be best served by not applying paragraph (1).
    ``(d) Authority To Use Other Agency Audit for Pre-Award Audit.--In 
any case in which the head of an agency proposes to examine the records 
of a contractor or subcontractor related to a proposal for a contract 
or subcontract (as authorized by subsection (a)(2)(A)), the head of the 
agency may use the results of an audit conducted by a Federal 
Government audit agency within the previous year if the contracting 
officer determines that the objectives of the proposed pre-award audit 
reasonably can be met by the other audit.
    ``(e) Limitation.--The right of the head of an agency under 
subsection (a), and the right of the Comptroller General under 
subsection (c), with respect to a contract or subcontract shall expire 
three years after final payment under such contract or subcontract.
    ``(f) Inapplicability to Certain Contracts.--This section does not 
apply to the following contracts:
            ``(1) Contracts for utility services at rates not exceeding 
        those established to apply uniformly to the public, plus any 
        applicable reasonable connection charge.
    ``(g) Forms of Original Record Storage.--Nothing in this section 
shall be construed to preclude a contractor from duplicating or storing 
original records in electronic form.
    ``(h) Use of Images of Original Records.--The head of an agency 
shall not require a contractor or subcontractor to provide original 
records in an audit carried out pursuant to this section if the 
contractor or subcontractor provides photographic or electronic images 
of the original records and meets the following requirements:
            ``(1) The contractor or subcontractor has established 
        procedures to ensure that the imaging process preserves the 
        integrity, reliability, and security of the original records.
            ``(2) The contractor or subcontractor maintains an 
        effective indexing system to permit timely and convenient 
        access to the imaged records.
            ``(3) The contractor or subcontractor retains the original 
        records for a minimum of one year after imaging to permit 
        periodic validation of the imaging systems.
    ``(i) Records Defined.--In this section, the term `records' 
includes books, documents, accounting procedures and practices, and 
other data, regardless of type and regardless of whether such items are 
in written form, in the form of computer data, or in any other form.''.
            (2) Clerical amendment.--The item relating to such section 
        in the table of sections at the beginning of chapter 137 of 
        title 10, United States Code, is amended to read as follows:

``2313. Examination of records of contractor.''.
    (b) Repeal of Superseded Provision.--
            (1) Repeal.--Section 2406 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by striking 
        out the item relating to section 2406.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2251. AUTHORITY TO EXAMINE RECORDS OF CONTRACTORS.

    (a) Authority.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended 
by section 1251(2), is further amended by inserting after section 304B 
the following new section:

``SEC. 304C. EXAMINATION OF RECORDS OF CONTRACTOR.

    ``(a) Agency Authority.--The head of an executive agency, acting 
through an authorized representative--
            ``(1) is entitled to inspect the plant and audit the 
        records of--
                    ``(A) a contractor performing a cost-reimbursement, 
                incentive, time-and-materials, labor-hour, or price-
                redeterminable contract, or any combination of such 
                contracts, made by that executive agency under this 
                title; and
                    ``(B) a subcontractor performing any subcontract 
                under such a contract or combination of contracts; and
            ``(2) shall, for the purpose of evaluating the accuracy, 
        completeness, and currency of cost or pricing data required to 
        be submitted pursuant to section 304B with respect to a 
        contract or subcontract, have the right to examine all records 
        of the contractor or subcontractor related to--
                    ``(A) the proposal for the contract or subcontract;
                    ``(B) the discussions conducted on the proposal;
                    ``(C) pricing of the contract or subcontract; or
                    ``(D) performance of the contract or subcontract.
    ``(b) Comptroller General Authority.--(1) Except as provided in 
paragraph (2), each contract awarded after using procedures other than 
sealed bid procedures shall provide that the Comptroller General and 
his representatives are entitled to examine any records of the 
contractor, or any of its subcontractors, that directly pertain to, and 
involve transactions relating to, the contract or subcontract.
    ``(2) Paragraph (1) does not apply to a contract or subcontract 
with a foreign contractor or foreign subcontractor if the agency head 
concerned determines, with the concurrence of the Comptroller General 
or his designee, that the application of that paragraph to the contract 
or subcontract would not be in the public interest. However, the 
concurrence of the Comptroller General or his designee is not 
required--
            ``(A) where the contractor or subcontractor is a foreign 
        government or agency thereof or is precluded by the laws of the 
        country involved from making its records available for 
        examination; and
            ``(B) where the agency head determines, after taking into 
        account the price and availability of the property and services 
        from United States sources, that the public interest would be 
        best served by not applying paragraph (1).
    ``(c) Authority To Use Other Agency Audit for Pre-Award Audit.--In 
any case in which the head of an agency proposes to examine the records 
of a contractor or subcontractor related to a proposal for a contract 
or subcontract (as authorized by subsection (a)(2)(A)), the head of the 
agency may use the results of an audit conducted by a Federal 
Government audit agency within the previous year if the contracting 
officer determines that the objectives of the proposed pre-award audit 
reasonably can be met by the other audit.
    ``(d) Limitation.--The right of an agency head under subsection 
(a), and the right of the Comptroller General under subsection (b), 
with respect to a contract or subcontract shall expire three years 
after final payment under such contract or subcontract.
    ``(e) Inapplicability to Certain Contracts.--This section does not 
apply to the following contracts:
            ``(1) Contracts for utility services at rates not exceeding 
        those established to apply uniformly to the public, plus any 
        applicable reasonable connection charge.
    ``(f) Form of Original Record Storage.--Nothing in this section 
shall be construed to preclude a contractor from duplicating or storing 
original records in electronic form.
    ``(g) Use of Images of Original Records.--The head of an agency 
shall not require a contractor or subcontractor to provide original 
records in an audit carried out pursuant to this section if the 
contractor or subcontractor provides photographic or electronic images 
of the original records and meets the following requirements:
            ``(1) The contractor or subcontractor has established 
        procedures to ensure that the imaging process preserves the 
        integrity, reliability, and security of the original records.
            ``(2) The contractor or subcontractor maintains an 
        effective indexing system to permit timely and convenient 
        access to the imaged records.
            ``(3) The contractor or subcontractor retains the original 
        records for a minimum of one year after imaging to permit 
        periodic validation of the imaging systems.
    ``(h) Records Defined.--In this section, the term `records' 
includes books, documents, accounting procedures and practices, and 
other data, regardless of type and regardless of whether such items are 
in written form, in the form of computer data, or in any other form.''.
    (b) Repeal of Superseded Provision.--Section 304 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254) is 
amended by striking out subsection (c).

                 Subtitle D--Cost Accounting Standards

SEC. 2301. REPEAL OF OBSOLETE DEADLINE REGARDING PROCEDURAL REGULATIONS 
              FOR THE COST ACCOUNTING STANDARDS BOARD.

    Section 26(f)(3) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 422(f)(3)) is amended in the first sentence by striking out 
``Not later than 180 days after the date of enactment of this section, 
the Administrator'' and inserting in lieu thereof ``The 
Administrator''.

 Subtitle E--Administration of Contract Provisions Relating to Price, 
                     Delivery, and Product Quality

SEC. 2401. CLARIFICATION OF PROVISION RELATING TO QUALITY CONTROL OF 
              CERTAIN SPARE PARTS.

    The second sentence of subsection (a) of section 2383 of title 10, 
United States Code, is amended to read as follows: ``In establishing 
the appropriate qualification requirements, the Secretary of Defense 
shall use the Department of Defense qualification requirements that 
were used to qualify the original production part, unless the Secretary 
determines in writing--
            ``(1) that there are other requirements sufficiently 
        similar to those requirements that should be used instead; or
            ``(2) that any or all such requirements are unnecessary.''.

SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.

    (a) Repeal of Requirement for Report on Waivers.--Subsection (e) of 
section 2403 of title 10, United States Code, is amended--
            (1) by striking out ``(1)''; and
            (2) by striking out paragraph (2).
    (b) Provisions To Be Addressed by Regulations.--Subsection (h) of 
such section is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The regulations shall include the following:
            ``(A) Guidelines for negotiating contractor guarantees that 
        are reasonable and cost effective, as determined on the basis 
        of the likelihood of defects and the estimated cost of 
        correcting such defects.
            ``(B) Procedures for administering contractor guarantees.
            ``(C) Guidelines for determining the cases in which it may 
        be appropriate to waive the requirements of this section.''.

                    Subtitle F--Claims and Disputes

SEC. 2501. CERTIFICATION OF CONTRACT CLAIMS.

    (a) DOD Certification Requirement in Conflict With Government-Wide 
Requirement.--
            (1) Repeal.--Section 2410 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by striking 
        out the item relating to section 2410.
    (b) Repeal of Superseded Provision.--Section 813(b) of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2453), is repealed.
    (c) Restriction on Legislative Payment of Claims.--Section 2410e of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Restriction on Legislative Payment of Claims.--In the case of 
a contract of an agency named in section 2303(a) of this title, no 
provision of a law enacted after the date of the enactment of the 
Federal Acquisition Improvement Act of 1994 that directs the payment of 
a particular claim under such contract, a particular request for 
equitable adjustment to any term of such contract, or a particular 
request for relief under Public Law 85-804 (50 U.S.C. 1431 et seq.) 
regarding such contract may be implemented unless such provision of 
law--
            ``(1) specifically refers to this subsection; and
            ``(2) specifically states that this subsection does not 
        apply with respect to the payment directed by that provision of 
        law.''.

         TITLE III--MAJOR SYSTEMS AND SERVICE SPECIFIC STATUTES

                   Subtitle A--Major Systems Statutes

SEC. 3001. WEAPON DEVELOPMENT AND PROCUREMENT SCHEDULES.

    (a) Deadline and Purpose.--Subsection (a) of section 2431 of title 
10, United States Code, is amended--
            (1) in the first sentence--
                    (A) by striking out ``at the same time'' and 
                inserting in lieu thereof ``not later than 45 days 
                after''; and
                    (B) by striking out ``a written report'' and 
                inserting in lieu thereof ``budget justification 
                documents''; and
            (2) in the second and third sentences, by striking out 
        ``report'' and inserting in lieu thereof ``documents''.
    (b) Additional Matters To Be Included.--Subsection (b) of such 
section is amended--
            (1) by striking out ``include--'' and inserting in lieu 
        thereof ``include each of the following:'';
            (2) by capitalizing the first word in each of paragraphs 
        (1), (2), and (3);
            (3) by striking out the semicolon at the end of paragraphs 
        (1) and (2) and inserting in lieu thereof a period;
            (4) by striking out ``; and'' at the end of paragraph (3) 
        and inserting in lieu thereof a period; and
            (5) by amending paragraph (4) to read as follows:
            ``(4)(A) The most efficient production rate, the most 
        efficient acquisition rate, and the minimum sustaining rate, 
        consistent with the program priority established for such 
        weapon system by the Secretary concerned.
            ``(B) In this paragraph:
                    ``(i) The term `most efficient production rate' 
                means the maximum rate for each budget year at which 
                the weapon system can be produced with existing or 
                planned plant capacity and tooling, with one shift a 
                day running for eight hours a day and five days a week.
                    ``(ii) The term `minimum sustaining rate' means the 
                production rate for each budget year that is necessary 
                to keep production lines open while maintaining a base 
                of responsive vendors and suppliers.''.

SEC. 3002. SELECTED ACQUISITION REPORT REQUIREMENT.

    (a) Definition of Procurement Unit Cost.--
            (1) Definition.--Paragraph (2) of section 2432(a) of title 
        10, United States Code, is amended--
                    (A) in clause (A), by striking out ``for a fiscal 
                year'' and all that follows through ``such program in 
                such fiscal year'';
                    (B) in clause (B), by striking out ``with such 
                funds during such fiscal year.'' and inserting in lieu 
                thereof a period; and
                    (C) by striking out the last sentence.
            (2) Conforming amendments.--Section 2433 of such title is 
        amended--
                    (A) in subparagraph (B) of subsection (c)(1), by 
                striking out ``current'' before ``procurement unit 
                cost'';
                    (B) in subsection (d), by striking out ``current'' 
                before ``procurement unit cost'' each place it appears; 
                and
                    (C) in subsection (e), by striking out ``current'' 
                before ``procurement unit cost'' both places it 
                appears.
    (b) Exclusion of Firm, Fixed-Price Contracts.--Subsection (a) of 
section 2432 of such title is amended in paragraph (3) by inserting 
before the period at the end the following: ``and that is not a firm, 
fixed price contract''.
    (c) Definition of Full Life-Cycle Cost.--Such subsection is further 
amended in paragraph (4) by striking out ``has the meaning'' and all 
that follows through the end of the paragraph and inserting in lieu 
thereof the following: ``means all costs of development, procurement, 
military construction, and operations and support, without regard to 
funding source or management control.''.
    (d) Notice of Proposed Changes in SAR.--Subsection (c) of such 
section is amended in paragraph (2) by striking out the second sentence 
and inserting in lieu thereof the following: ``Whenever the Secretary 
of Defense proposes to make changes in the content of a Selected 
Acquisition Report, the Secretary shall submit a notice of the proposed 
changes to such committees. The changes shall be considered approved by 
the Secretary, and may be incorporated into the report, only after the 
end of the 60-day period beginning on the date on which the notice is 
received by those committees.''.
    (e) Elimination of Certain SAR Requirements.--Such subsection is 
further amended in paragraph (3) by striking out subparagraph (C).
    (f) Uniform Implementation of Life-Cycle Cost Analysis.--Such 
subsection is further amended--
            (1) by striking out paragraph (5); and
            (2) by adding at the end of subparagraph (A) of paragraph 
        (3) the following: ``The Secretary of Defense shall ensure that 
        this subparagraph is implemented in a uniform manner, to the 
        extent practicable, throughout the Department of Defense.''.
    (g) Deadline Revision.--Subsection (f) of such section is amended 
by striking out ``60 days'' in the first sentence and inserting in lieu 
thereof ``45 days''.
    (h) Elimination of Preliminary Report.--Such subsection is further 
amended by striking out the second sentence.
    (i) Terminology Corrections.--Such section is further amended as 
follows:
            (1) Subsection (b)(3)(A) is amended by striking out ``full 
        scale development or'' in clause (i).
            (2) Subsection (c)(3) is amended by striking out ``full-
        scale engineering'' in subparagraph (A) and inserting in lieu 
        thereof ``engineering and manufacturing''.
            (3) Subsection (h)(1) is amended by striking out ``full-
        scale engineering'' both places it appears and inserting in 
        lieu thereof ``engineering and manufacturing''.

SEC. 3003. UNIT COST REPORT REQUIREMENT.

    (a) Revision of Baseline Report Definitions.--
            (1) Revision.--Section 2433(a) of title 10, United States 
        Code, is amended--
                    (A) in paragraph (2)--
                            (i) by striking out ``Baseline Selected 
                        Acquisition Report'' and inserting in lieu 
                        thereof ``Baseline Estimate''; and
                            (ii) by striking out ``Selected Acquisition 
                        Report in which'' and all that follows through 
                        the end of the paragraph and inserting in lieu 
                        thereof ``cost estimate included in the 
                        baseline description for the program under 
                        section 2435 of this title.''; and
                    (B) by striking out paragraph (4).
            (2) Conforming amendments.--Section 2433 of such title is 
        further amended--
                    (A) in subsection (c)(1), by striking out 
                ``Baseline Report'' in subparagraphs (A) and (B) and 
                inserting in lieu thereof ``Baseline Estimate''; and
                    (B) in subsection (d), by striking out ``Baseline 
                Report'' in paragraphs (1) and (2) and inserting in 
                lieu thereof ``Baseline Estimate''.
    (b) Contents of Unit Cost Report.--Section 2433(b) of such title is 
amended in paragraph (3) by striking out ``Baseline Report was 
submitted.'' and inserting in lieu thereof ``contract was entered 
into.''.
    (c) Elimination of Certain Unit Cost Report Requirement.--Section 
2433(c) of such title, as amended by subsection (a), is further 
amended--
            (1) by striking out paragraph (2);
            (2) by striking out ``(1)'' after ``(c)''; and
            (3) by redesignating subparagraphs (A), (B), and (C) as 
        paragraphs (1), (2), and (3), respectively.
    (d) Constant Base Year Dollars.--Section 2433(f) of such title is 
amended by striking out ``include expected inflation'' and inserting in 
lieu thereof ``be stated in terms of constant base year dollars (as 
described in section 2430 of this title)''.
    (e) Contents of SAR.--Subparagraph (I) of section 2433(g)(1) of 
such title is amended to read as follows:
            ``(I) The type of the Baseline Estimate that was included 
        in the baseline description under section 2435 of this title 
        and the date of the Baseline Estimate.''.

SEC. 3004. REQUIREMENT FOR INDEPENDENT COST ESTIMATES AND MANPOWER 
              ESTIMATES BEFORE DEVELOPMENT OR PRODUCTION.

    (a) Content and Submission of Estimates.--Section 2434 of title 10, 
United States Code, is amended by striking out subsection (b) and 
inserting in lieu thereof the following:
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the content and submission of the estimates 
required by subsection (a). The regulations shall require--
            ``(1) that the independent estimate of the full life-cycle 
        cost of a program--
                    ``(A) be prepared by an office or other entity that 
                is not directly responsible for carrying out the 
                development or acquisition of the program; and
                    ``(B) include all costs of development, 
                procurement, military construction, and operations and 
                support, without regard to funding source or management 
                control; and
            ``(2) that the manpower estimate include the total 
        personnel required--
                    ``(A) to operate, maintain, and support the program 
                upon full operational deployment; and
                    ``(B) to train personnel to carry out the 
                activities referred to in subparagraph (A).''.
    (b) Terminology Correction and Other Amendment.--Subsection (a) of 
such section is amended--
            (1) by striking out ``full-scale engineering development'' 
        and inserting in lieu thereof ``engineering and manufacturing 
        development''; and
            (2) by striking out ``cost of the program, together with'' 
        and inserting in lieu thereof ``full life-cycle cost of the 
        program, and''.

SEC. 3005. BASELINE DESCRIPTION.

    (a) In General.--Section 2435 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2435. Baseline description
    ``(a) Baseline Description Requirement.--(1) The Secretary of a 
military department shall establish a baseline description for each 
major defense acquisition program under the jurisdiction of such 
Secretary.
    ``(2) The baseline shall include sufficient parameters to describe 
the cost estimate (referred to as the `Baseline Estimate' in section 
2433 of this title), schedule, and performance of such major defense 
acquisition program.
    ``(3) No amount appropriated or otherwise made available to the 
Department of Defense for carrying out a major defense acquisition 
program may be obligated without an approved baseline description 
unless such obligation is specifically approved by the Under Secretary 
of Defense for Acquisition and Technology.
    ``(4) A baseline description for a major defense acquisition 
program shall be established--
            ``(A) before the program enters engineering and 
        manufacturing development; and
            ``(B) before the program enters production and deployment.
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations governing--
            ``(1) the content of baseline descriptions;
            ``(2) the submission of reports on deviations of a program 
        from the baseline description by the program manager to the 
        Secretary of the military department concerned and the Under 
        Secretary of Defense for Acquisition and Technology;
            ``(3) procedures for review of such deviation reports 
        within the Department of Defense; and
            ``(4) procedures for submission to, and approval by, the 
        Secretary of Defense of revised baseline descriptions.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by amending the item relating to 
section 2435 to read as follows:

``2435. Baseline description.''.

SEC. 3006. REPEAL OF REQUIREMENT FOR COMPETITIVE PROTOTYPING IN MAJOR 
              PROGRAMS.

    (a) Repeal.--Section 2438 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by striking out the item relating 
to section 2438.

SEC. 3007. REPEAL OF REQUIREMENT FOR COMPETITIVE ALTERNATIVE SOURCES IN 
              MAJOR PROGRAMS.

    (a) Repeal.--Section 2439 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by striking out the item relating 
to section 2439.

                      Subtitle B--Testing Statutes

SEC. 3011. AUTHORIZATION OF LESS THAN FULL-UP TESTING.

    Section 2366(c) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (4);
            (2) by designating the second sentence of paragraph (1) as 
        paragraph (3) and in that paragraph by striking out ``such 
        certification'' and inserting in lieu thereof ``certification 
        under paragraph (1) or (2)''; and
            (3) by inserting before paragraph (3) (as so designated) 
        the following new paragraph:
    ``(2) In the case of a covered system (or covered product 
improvement program for a covered system), the Secretary may waive the 
application of the survivability and lethality tests of this section to 
such system or program and instead allow testing of the system or 
program in combat by firing munitions likely to be encountered in 
combat at components, subsystems, and subassemblies, together with 
performing design analyses, modeling and simulation, and analysis of 
combat data, if the Secretary certifies to Congress that the 
survivability and lethality testing of such system or program otherwise 
required by this section would be unreasonably expensive and 
impracticable.''.

SEC. 3012. LIMITATION ON QUANTITIES TO BE PROCURED FOR LOW-RATE INITIAL 
              PRODUCTION.

    Section 2400(a) of title 10, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``paragraph (1)'' and inserting 
                in lieu thereof ``this section''; and
                    (B) by striking out ``full-scale engineering 
                development'' and inserting in lieu thereof 
                ``engineering and manufacturing development'';
            (2) by redesignating paragraph (4) as paragraph (5) and in 
        that paragraph by inserting after the first sentence the 
        following: ``If the quantity exceeds 10 percent of the total 
        number of articles to be produced, as determined at the 
        milestone II decision with respect to that system, the 
        Secretary shall include in the statement the reasons for such 
        quantity.''; and
            (3) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4) The quantity of articles of a major system that may be 
procured for low-rate initial production may not be less than one 
operationally configured production unit unless another quantity is 
established at the milestone II decision.''.

SEC. 3013. OPERATIONAL TEST AND EVALUATION OF DEFENSE ACQUISITION 
              PROGRAMS.

    (a) Authority To Use Different Procedures.--Section 2399(b) of 
title 10, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5) The Secretary of Defense may, for a particular major defense 
acquisition program, prescribe and apply operational test and 
evaluation procedures other than those provided under subsection (a) 
and paragraphs (1) through (3) of this subsection if the Secretary 
transmits to Congress, before the Milestone II decision is made with 
respect to that program--
            ``(A) a certification that such testing would be 
        unreasonably expensive and impracticable; and
            ``(B) a description of the actions taken to ensure that the 
        system will be operationally effective and suitable when the 
        system meets initial operational capability requirements.''.
    (b) Cross Reference Corrections.--Section 2399 of such title is 
further amended--
            (1) in subsection (b)(6) (as redesignated by subsection 
        (a)(1)) and subsection (c)(1), by striking out ``section 
        138(a)(2)(B)'' and inserting in lieu thereof ``section 
        139(a)(2)(B)''; and
            (2) in subsection (h)(1), by striking out ``section 
        138(a)(2)(A)'' and inserting in lieu thereof ``section 
        139(a)(2)(A)''.

                  Subtitle C--Civil Reserve Air Fleet

SEC. 3021. DEFINITION OF CONTRACTOR.

    Section 9511(8) of title 10, United States Code, is amended--
            (1) by striking out ``or'' at the end of clause (A); and
            (2) by inserting before the period at the end the 
        following: ``, or (C) who owns or controls, or will own or 
        control, new or existing aircraft and who, by contract, commits 
        some or all of such aircraft to the Civil Reserve Air Fleet''.

SEC. 3022. CONSOLIDATION OF PROVISIONS RELATING TO CONTRACTUAL 
              COMMITMENT OF AIRCRAFT.

    Chapter 931 of title 10, United States Code, is amended--
            (1) in subsection (a) of section 9512, by inserting 
        ``Authority to Contract.--'' after ``(a)'';
            (2) in subsection (c) of section 9512, by striking out 
        ``(c)'' and inserting in lieu thereof ``(d) Authority To 
        Contract and Pay Directly.--'';
            (3) in subsection (b) of section 9512, by striking out 
        ``(b)'' and inserting in lieu thereof ``(c) Terms and Required 
        Repayment.--'';
            (4) by redesignating subsection (a) of section 9513 as 
        subsection (b) and transferring such subsection (as so 
        redesignated) to section 9512 and inserting such subsection 
        after subsection (a);
            (5) by redesignating subsection (b) of section 9513 as 
        subsection (e) and transferring such subsection (as so 
        redesignated) to the end of section 9512;
            (6) in subsection (b) of section 9512, as redesignated and 
        transferred to such section by paragraph (4)--
                    (A) by striking out ``under section 9512 of this 
                title'' and inserting in lieu thereof ``entered into 
                under this section'', and
                    (B) by inserting ``Contract Requirements.--'' after 
                ``(b)'';
            (7) in subsection (c) of section 9512, as redesignated by 
        paragraph (3), by striking out ``the terms required by section 
        9513 of this title and'';
            (8) in subsection (e) of section 9512, as redesignated and 
        transferred to such section by paragraph (5)--
                    (A) by striking out ``under section 9512 of this 
                title'' and inserting in lieu thereof ``entered into 
                under this section'', and
                    (B) by inserting ``Commitment to Civil Reserve Air 
                Fleet.--'' after ``(e)''; and
            (9) by striking out the heading of section 9513.

SEC. 3023. USE OF MILITARY INSTALLATIONS BY CONTRACTORS.

    (a) Authority.--Chapter 931 of title 10, United States Code, as 
amended by section 3022, is further amended by adding at the end the 
following new section 9513:
``Sec. 9513. Use of military installations by Civil Reserve Air Fleet 
              contractors
    ``(a) Contract Authority.--(1) The Secretary of the Air Force--
            ``(A) may, by contract entered into with any contractor, 
        authorize such contractor to use one or more Air Force 
        installations designated by the Secretary; and
            ``(B) with the consent of the Secretary of another military 
        department, may, by contract entered into with any contractor, 
        authorize the contractor to use one or more installations, 
        designated by the Secretary of the Air Force, that is under the 
        jurisdiction of the Secretary of such other military 
        department.
    ``(2) The Secretary of the Air Force may include in the contract 
such terms and conditions as the Secretary determines appropriate to 
promote the national defense or to protect the interests of the United 
States.
    ``(b) Purposes of Use.--A contract entered into under subsection 
(a) may authorize use of a designated installation as a weather 
alternate, a technical stop not involving the enplaning or deplaning of 
passengers or cargo, or, in the case of an installation within the 
United States, for other commercial purposes. Notwithstanding any other 
provision of the law, the Secretary may establish different levels and 
types of uses for different installations and may provide in contracts 
under subsection (a) for different levels and types of uses by 
different contractors.
    ``(c) Hold Harmless Requirement.--A contract entered into under 
subsection (a) shall provide that the contractor agrees to indemnify 
and hold harmless the Air Force (and any other armed force having 
jurisdiction over any installation covered by the contract) from all 
actions, suits, or claims of any sort resulting from, relating to, or 
arising out of any activities conducted, or services or supplies 
furnished, in connection with the contract.
    ``(d) Reservation of Right To Exclude Contractor.--A contract 
entered into under subsection (a) shall provide that the Secretary 
concerned may, without providing prior notice, deny access to an 
installation designated under the contract when the Secretary 
determines that it is necessary to do so in order to meet military 
exigencies.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by striking out the item relating to section 
9513 and inserting in lieu thereof the following:

``9513. Use of military installations by Civil Reserve Air Fleet 
                            contractors.''.

                       Subtitle D--Miscellaneous

SEC. 3051. EXTENSION TO DEPARTMENT OF DEFENSE GENERALLY OF PROVISION 
              RELATING TO MANUFACTURE AT FACTORIES AND ARSENALS.

    (a) Consolidation, Revision, and Extension to Department of Defense 
of Authority.--(1) Subchapter V of chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2542. Factories and arsenals: manufacture at
    ``(a) The Secretary of Defense or the Secretary of a military 
department may have supplies needed for the Department of Defense or 
such military department, as the case may be, made in factories or 
arsenals owned by the United States.
    ``(b) The Secretary of Defense or the Secretary of the military 
department concerned may abolish any United States arsenal that such 
Secretary considers unnecessary.''.
    (2) The table of sections at the beginning of subchapter V of such 
chapter is amended by adding at the end the following new item:

``2542. Factories and arsenals: manufacture at.''.
    (b) Repeal of Superseded Authority.--
            (1) Army authority.--
                    (A) Repeal.--Section 4532 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 433 of such title is amended 
                by striking out the item relating to section 4532.
            (2) Air force authority.--
                    (A) Repeal.--Section 9532 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 933 of such title is amended 
                by striking out the item relating to section 9532.

SEC. 3052. CODIFICATION OF ACCOUNTING REQUIREMENT FOR CONTRACTED 
              ADVISORY AND ASSISTANCE SERVICES.

    (a) Funding To Be Identified in Budget.--Section 1105 of title 31, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(g)(1) The Director of the Office of Management and Budget shall 
establish the funding for consulting services for each department and 
agency as a separate object class in each budget annually submitted to 
the Congress under this section.
    ``(2) In this subsection, consulting services include--
            ``(A) management and professional support services;
            ``(B) studies, analyses, and evaluations;
            ``(C) engineering and technical services (excluding routine 
        engineering services such as automated data processing and 
        architect and engineering contracts); and
            ``(D) research and development.''.
    (b) Repeal of Source Law.--Section 512 of Public Law 102-394 (106 
Stat. 1826) is repealed.
    (c) Repeal of Superseded Provisions.--
            (1) DOD specific law.--Section 2212 of title 10, United 
        States Code, is repealed.
            (2) Government-wide law.--Section 1114 of title 31, United 
        States Code, is repealed.
            (3) Clerical amendments.--The table of sections at the 
        beginning of chapter 131 of title 10, United States Code, is 
        amended by striking out the item relating to section 2212. The 
        table of sections at the beginning of chapter 11 of title 31, 
        United States Code, is amended by striking out the item 
        relating to section 1114.

SEC. 3053. REGULATIONS ON PROCUREMENT, PRODUCTION, WAREHOUSING, AND 
              SUPPLY DISTRIBUTION FUNCTIONS.

    (a) In General.--Section 2202 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2202. Regulations on procurement, production, warehousing, and 
              supply distribution functions
    ``The Secretary of Defense shall prescribe regulations governing 
the performance within the Department of Defense of the procurement, 
production, warehousing, and supply distribution functions, and related 
functions, of the Department of Defense.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 131 of such title is amended by striking out the item related 
to section 2202 and inserting in lieu thereof the following:

``2202. Regulations on procurement, production, warehousing, and supply 
                            distribution functions.''.

SEC. 3054. REPEAL OF REQUIREMENTS REGARDING PRODUCT EVALUATION 
              ACTIVITIES.

    (a) Repeal.--Section 2369 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking out the item related 
to section 2369.

SEC. 3055. CODIFICATION AND REVISION OF LIMITATION ON LEASE OF VESSELS, 
              AIRCRAFT, AND VEHICLES.

    (a) Limitation.--(1) Chapter 141 of title 10, United States Code, 
is amended by inserting after section 2401 the following new section:
``Sec. 2401a. Lease of vessels, aircraft, and vehicles
    ``The Secretary of Defense or the Secretary of a military 
department may not enter into any contract with a term of 18 months or 
more, or extend or renew any contract for a term of 18 months or more, 
for any vessel, aircraft, or vehicle, through a lease, charter, or 
similar agreement, unless the Secretary has considered all costs of 
such contract (including estimated termination liability) and has 
determined in writing that the contract is in the best interest of the 
Government.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2401 the 
following new item:

``2401a. Lease of vessels, aircraft, and vehicles.''.
    (b) Repeal of Superseded Provision.--Section 9081 of Public Law 
101-165 (103 Stat. 1147; 10 U.S.C. 2401 note) is repealed.

SEC. 3056. REPEAL OF APPLICATION OF PUBLIC CONTRACTS ACT TO CERTAIN 
              NAVAL VESSEL CONTRACTS.

    (a) Repeal.--Section 7299 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7299.

  TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL 
                    BUSINESS, AND MISCELLANEOUS LAWS

              Subtitle A--Simplified Acquisition Threshold

                   PART I--ESTABLISHMENT OF THRESHOLD

SEC. 4001. ESTABLISHMENT OF SIMPLIFIED ACQUISITION THRESHOLD.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.) is amended by inserting after section 4 the following new 
section:

``SEC. 4A. SIMPLIFIED ACQUISITION THRESHOLD.

    ``(a) In General.--The simplified acquisition threshold for 
purposes of Federal acquisitions is (except as provided in subsection 
(b)) the amount of $25,000, as adjusted pursuant to subsection (c).
    ``(b) Agencies With FACNET Capability.--In the case of an agency 
for which there is in effect a certification under section 2302b(c) of 
title 10, United States Code, or section 302B(c) of the Federal 
Property and Administrative Services Act of 1949 with respect to 
implementation of a FACNET capability, the simplified acquisition 
threshold is the amount of $100,000, as adjusted pursuant to subsection 
(c).
    ``(c) Periodic Adjustment for Inflation.--The dollar amount in 
effect under subsection (a) shall be adjusted on October 1 of each year 
divisible by 5 to the equivalent amount in constant fiscal year 1990 
dollars (rounded to the nearest $1,000). The dollar amount in effect 
under subsection (b) shall be adjusted on October 1 of each year 
divisible by 5 to the equivalent amount in constant fiscal year 1993 
dollars (rounded to the nearest $1,000).
    ``(d) Special Rule for Contingency Operations.--In the case of a 
contract to be awarded and performed, or a purchase to be made, outside 
the United States in support of a contingency operation (as defined in 
section 101(a)(13) of title 10, United States Code), the amounts in 
effect under subsections (a) and (b) shall be two times the amounts 
otherwise applicable.''.

SEC. 4002. FEDERAL ACQUISITION COMPUTER NETWORK.

    (a) Federal Acquisition Computer Network.--The Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding 
after section 28 the following new section:

``SEC. 29. FEDERAL ACQUISITION COMPUTER NETWORK (FACNET).

    ``(a) In General.--(1) The Administrator shall establish a program 
for the development and implementation of a Federal acquisition 
computer network (hereinafter in this section referred to as the 
`FACNET'). The Administrator shall assign a program manager for the 
FACNET and shall provide for overall direction of policy and leadership 
in the development, coordination, installation, operation, and 
completion of implementation of the FACNET by executive agencies.
    ``(2) In carrying out paragraph (1), the Administrator shall 
consult with appropriate Federal agencies with applicable technical and 
functional expertise, including the National Institute of Standards and 
Technology, the General Services Administration, and the Department of 
Defense.
    ``(3) The Administrator shall carry out paragraph (1) not later 
than the date that is 5 years after the date of enactment of the 
Federal Acquisition Improvement Act of 1994.
    ``(b) Functions of FACNET.--The FACNET shall have the capacity to 
carry out the following functions:
            ``(1) Government functions.--
                    ``(A) Provide widespread public notice of 
                solicitations for contract opportunities issued by an 
                executive agency and of orders to be made by the 
                agency.
                    ``(B) Allow responses to solicitations and requests 
                for information to be submitted to the contracting 
                activity through such system.
                    ``(C) Allow public notice of contract awards to be 
                provided through such system.
                    ``(D) In cases in which it is practicable, allow 
                questions regarding solicitations to be answered 
                through such system.
                    ``(E) Allow orders to be made through such system.
                    ``(F) In cases in which it is practicable, make 
                payments to contractors by bank card, electronic funds 
                transfer, or other automated methods.
                    ``(G) Archive data relating to each procurement 
                action made using such system.
            ``(2) User functions.--Allow private users to 
        electronically--
                    ``(A) access notice of solicitations for contract 
                opportunities issued by an agency and of orders to be 
                made by the agency;
                    ``(B) selectively access and review solicitations 
                and orders issued by the agency;
                    ``(C) respond to solicitations and notices of 
                orders issued by the agency;
                    ``(D) receive orders from the agency;
                    ``(E) access information on contract awards made by 
                the agency; and
                    ``(F) in cases in which it is practicable, receive 
                payment by bank card, electronic funds transfer, or 
                other automated means.
            ``(3) General functions.--
                    ``(A) Allow the electronic exchange of procurement 
                information between the private sector and the Federal 
                Government.
                    ``(B) Employ nationally and internationally 
                recognized data formats that serve to broaden and ease 
                the electronic interchange of data.
                    ``(C) Allow convenient and universal user access 
                through a single point of entry.
    ``(c) Annual Reports to Congress.--The Administrator shall evaluate 
progress by executive agencies in implementing the FACNET under this 
section. The Administrator shall submit to the Congress, on the date 
that is one year after the date of the enactment of the Federal 
Acquisition Improvement Act of 1994 and on that date in each of the 5 
years thereafter, a report on the overall progress by the executive 
branch and by each executive agency in implementing this section.''.
    (b) Technical Amendments.--Section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) is amended--
            (1) in subsection (a)(1)(A), by striking out ``notice'' in 
        the matter following clause (ii) and inserting in lieu thereof 
        ``notice of solicitation''; and
            (2) in subsection (d), by striking out ``a notice under 
        subsection (e)'' in the first sentence and inserting in lieu 
        thereof ``a notice of solicitation under subsection (a)''.

SEC. 4003. IMPLEMENTATION IN ARMED SERVICES.

    (a) Establishment in Title 10.--Chapter 137 of title 10, United 
States Code, is amended by inserting after section 2302 the following 
new sections:
``Sec. 2302a. Simplified acquisition threshold
    ``(a) Simplified Acquisition Threshold.--For purposes of 
acquisitions by agencies named in section 2303 of this title, the 
simplified acquisition threshold is as specified in section 4A of the 
Office of Federal Procurement Policy Act, as in effect on the effective 
date of section 4001 of the Federal Acquisition Improvement Act of 
1994.
``Sec. 2302b. Implementation of FACNET capability
    ``(a) Implementation of FACNET Capability.--(1) The head of each 
agency named in section 2303 of this title shall implement the Federal 
acquisition computer network (`FACNET') capability required by section 
29 of the Office of Federal Procurement Policy Act. In the case of the 
Department of Defense, the implementation shall be by the Secretary of 
Defense for the Department of Defense as a whole. For purposes of this 
section, the term `head of an agency' does not include the Secretaries 
of the military departments.
    ``(2) In implementing the FACNET capability pursuant to paragraph 
(1), the head of an agency shall consult with the Administrator for 
Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The Secretary of Defense 
shall designate the Under Secretary of Defense for Acquisition and 
Technology to have responsibility for implementation of FACNET 
capability throughout the Department of Defense. The head of each 
agency named in paragraph (5) or (6) of section 2303 of this title 
shall designate a program manager to have responsibility for 
implementation of FACNET capability for that agency and otherwise to 
implement this section.
    ``(c) Certification of FACNET Capability.--(1) When the head of an 
agency, with the concurrence of the Administrator for Federal 
Procurement Policy, determines that the agency has implemented an 
interim FACNET capability (as defined in subsection (f)), the head of 
the agency shall certify to Congress that the agency has implemented an 
interim FACNET capability.
    ``(2) When the head of an agency, with the concurrence of the 
Administrator for Federal Procurement Policy, determines that the 
agency has implemented a full FACNET capability (as defined in 
subsection (g)), the head of the agency shall certify to Congress that 
the agency has implemented a full FACNET capability.
    ``(3) The head of each agency shall provide for implementation of 
both interim FACNET capability and full FACNET capability, with 
priority on providing convenient and universal user access as required 
by section 29(b)(3)(C) of the Office of Federal Procurement Policy Act, 
in that agency as soon as practicable after the date of the enactment 
of the Federal Acquisition Improvement Act of 1994.
    ``(d) Higher Simplified Acquisition Threshold When FACNET 
Capability Certified.--A certification to Congress under subsection (c) 
shall be considered to be a certification for purposes of the higher 
simplified acquisition threshold under section 4A(b) of the Office of 
Federal Procurement Policy Act, except that a certification under 
paragraph (1) of subsection (c) shall not constitute such a 
certification in the case of solicitations issued after the end of the 
five-year period beginning on the date of the enactment of the Federal 
Acquisition Improvement Act of 1994.
    ``(e) Exemption From Notice Provisions.--An agency is exempt from 
the requirements of section 18(a)(1) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416(a)(1)) if the head of the agency 
makes the certification described in subsection (c)(1).
    ``(f) Implementation of Interim FACNET Capability.--An agency shall 
be considered to have implemented an interim FACNET capability if 
(except in the case of contracting activities (or portions thereof) of 
the agency for which the head of the agency determines that 
implementation is not cost effective or practicable)--
            ``(1) with respect to each procurement expected to be in an 
        amount greater than $25,000, the agency has implemented the 
        FACNET functions described in paragraphs (1)(A) and (2)(A) of 
        section 29(b) of the Office of Federal Procurement Policy Act, 
        as in effect on the effective date of section 4002 of the 
        Federal Acquisition Improvement Act of 1994; and
            ``(2) with respect to each procurement expected to be in an 
        amount greater than $25,000, the agency issues notices of 
        solicitations through a system with those functions for all 
        contracting opportunities other than in cases covered by 
        section 18(c) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 416(c)).
    ``(g) Implementation of Full FACNET Capability.--(1) An agency 
shall be considered to have implemented a full FACNET capability if 
(except in the case of contracting activities (or portions thereof) of 
the agency for which the head of the agency determines that 
implementation is not cost effective or practicable) the agency has 
implemented all of the FACNET functions described in section 29(b) of 
the Office of Federal Procurement Policy Act, as in effect on the 
effective date of section 4002 of the Federal Acquisition Improvement 
Act of 1994.
    ``(2) For purposes of paragraph (1), an agency may not be 
considered to have implemented a full FACNET capability if--
            ``(A) the head of the agency has determined that 
        implementation of FACNET capability is not cost effective or 
        practicable in the case of certain contracting activities (or 
        portions thereof) of the agency; and
            ``(B) the percentage of the procurement actions executed by 
        those contracting activities (or portions thereof) for the 
        preceding fiscal year is greater than 25 percent of the total 
        number of procurement actions executed by the agency for that 
        year.
    ``(h) Contracting Activities Originally Excluded in 
Certification.--(1) If the head of an agency, in certifying under 
subsection (c) that the agency has implemented an interim or a full 
FACNET capability, determines that such implementation is not cost 
effective or practicable in the case of any contracting activity (or 
portion thereof) of that agency, then that certification shall not 
apply under section 4A(b) of the Office of Federal Procurement Policy 
Act to any procurement action by that contracting activity (or portion 
thereof).
    ``(2) If the head of an agency determines that an interim or a full 
FACNET capability has subsequently been implemented for that 
contracting activity (or portion thereof), the head of the agency shall 
make a certification to the Administrator for Federal Procurement 
Policy in the same manner as a certification under paragraph (1) or (2) 
of subsection (c), as applicable, and such certification shall have the 
same effect with respect to that contracting activity (or portion 
thereof) as if made under such paragraph of subsection (c).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 137 of such title is amended by inserting after the item 
relating to section 2302 the following new items:

``2302a. Simplified acquisition threshold.
``2302b. Implementation of FACNET capability.''.

SEC. 4004. IMPLEMENTATION IN CIVILIAN AGENCIES.

    Title III of the Federal Property and Administrative Services Act 
of 1949 is amended by inserting after section 302 the following new 
sections:

``SEC. 302A. SIMPLIFIED ACQUISITION THRESHOLD.

    ``(a) Simplified Acquisition Threshold.--For purposes of 
acquisitions by executive agencies, the simplified acquisition 
threshold is as specified in section 4A of the Office of Federal 
Procurement Policy Act, as in effect on the effective date of section 
4001 of the Federal Acquisition Improvement Act of 1994.

``SEC. 302B. IMPLEMENTATION OF FACNET CAPABILITY.

    ``(a) Implementation of FACNET Capability.--(1) The head of each 
executive agency shall implement the Federal acquisition computer 
network (`FACNET') capability required by section 29 of the Office of 
Federal Procurement Policy Act.
    ``(2) In implementing the FACNET capability pursuant to paragraph 
(1), the head of an executive agency shall consult with the 
Administrator for Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each executive 
agency shall designate a program manager to have responsibility for 
implementation of FACNET capability for that agency and otherwise to 
implement this section.
    ``(c) Certification of FACNET Capability.--(1) When the head of an 
executive agency, with the concurrence of the Administrator for Federal 
Procurement Policy, determines that the agency has implemented an 
interim FACNET capability (as defined in subsection (f)), the head of 
the agency shall certify to Congress that the agency has implemented an 
interim FACNET capability.
    ``(2) When the head of an executive agency, with the concurrence of 
the Administrator for Federal Procurement Policy, determines that the 
agency has implemented a full FACNET capability (as defined in 
subsection (g)), the head of the agency shall certify to Congress that 
the agency has implemented a full FACNET capability.
    ``(3) The head of each executive agency shall provide for 
implementation of both interim FACNET capability and full FACNET 
capability, with priority on providing convenient and universal user 
access as required by section 29(b)(3)(C) of the Office of Federal 
Procurement Policy Act, in that agency as soon as practicable after the 
date of the enactment of the Federal Acquisition Improvement Act of 
1994.
    ``(d) Higher Simplified Acquisition Threshold When FACNET 
Capability Certified.--A certification to Congress under subsection (c) 
shall be considered to be a certification for purposes of the higher 
simplified acquisition threshold under section 4A(b) of the Office of 
Federal Procurement Policy Act, except that a certification under 
paragraph (1) of subsection (c) shall not constitute such a 
certification in the case of solicitations issued after the end of the 
five-year period beginning on the date of the enactment of the Federal 
Acquisition Improvement Act of 1994.
    ``(e) Exemption From Notice Provisions.--An executive agency is 
exempt from the requirements of section 18(a)(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 416(a)(1)) if the head of the 
agency makes the certification described in subsection (c)(1).
    ``(f) Implementation of Interim FACNET Capability.--An executive 
agency shall be considered to have implemented an interim FACNET 
capability if (except in the case of contracting activities (or 
portions thereof) of the agency for which the head of the agency 
determines that implementation is not cost effective or practicable)--
            ``(1) with respect to each procurement expected to be in an 
        amount greater than $25,000, the executive agency has 
        implemented the FACNET functions described in paragraphs (1)(A) 
        and (2)(A) of section 29(b) of the Office of Federal 
        Procurement Policy Act, as in effect on the effective date of 
        section 4002 of the Federal Acquisition Improvement Act of 
        1994; and
            ``(2) with respect to each procurement expected to be in an 
        amount greater than $25,000, the executive agency issues 
        notices of solicitations through a system with those functions 
        for all contracting opportunities other than in cases covered 
        by section 18(c) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 416(c)).
    ``(g) Implementation of Full FACNET Capability.--(1) An executive 
agency shall be considered to have implemented a full FACNET capability 
if (except in the case of contracting activities (or portions thereof) 
of the agency for which the head of the agency determines that 
implementation is not cost effective or practicable) the executive 
agency has implemented all of the FACNET functions described in section 
29(b) of the Office of Federal Procurement Policy Act, as in effect on 
the effective date of section 4002 of the Federal Acquisition 
Improvement Act of 1994.
    ``(2) For purposes of paragraph (1), an executive agency may not be 
considered to have implemented a full FACNET capability if--
            ``(A) the head of the agency has determined that 
        implementation of FACNET capability is not cost effective or 
        practicable in the case of certain contracting activities (or 
        portions thereof) of the agency; and
            ``(B) the percentage of the procurement actions executed by 
        those contracting activities (or portions thereof) for the 
        preceding fiscal year is greater than 25 percent of the total 
        number of procurement actions executed by the agency for that 
        year.
    ``(h) Contracting Activities Originally Excluded in 
Certification.--(1) If the head of an executive agency, in certifying 
under subsection (c) that the agency has implemented an interim or a 
full FACNET capability, determines that such implementation is not cost 
effective or practicable in the case of any contracting activity (or 
portion thereof) of that agency, then that certification shall not 
apply under section 4A(b) of the Office of Federal Procurement Policy 
Act to any procurement action by that contracting activity (or portion 
thereof).
    ``(2) If the head of an executive agency determines that an interim 
or a full FACNET capability has subsequently been implemented for that 
contracting activity (or portion thereof), the head of the agency shall 
make a certification to Administrator for Federal Procurement Policy in 
the same manner as a certification under paragraph (1) or (2) of 
subsection (c), as applicable, and such certification shall have the 
same effect with respect to that contracting activity (or portion 
thereof) as if made under such paragraph of subsection (c).''.

                 PART II--SIMPLIFICATION OF PROCEDURES

SEC. 4011. SMALL BUSINESS PROVISIONS.

    (a) Interim Reporting Rule.--Notwithstanding section 4A of the 
Office of Federal Procurement Policy Act, as added by section 4001, 
during the 5-year period beginning on the date of the issuance in final 
form of revisions to the Federal Acquisition Regulation under section 
4B of the Office of Federal Procurement Policy Act, as added by section 
4012, contracting activities shall continue to report, pursuant to 
section 19(d) of the Office of Federal Procurement Policy Act (41 
U.S.C. 417(d)), procurement awards with a dollar value of at least 
$25,000, but less than $100,000, in conformity with the procedures for 
the reporting of a contract award in excess of $25,000 in effect on 
November 18, 1993.
    (b) Functions of Administrator for Federal Procurement Policy.--
Section 6(d) of the Office of Federal Procurement Policy Act (41 U.S.C. 
405(d)) is amended--
            (1) in paragraph (7), by striking out ``and'' after the 
        semicolon at the end; and
            (2) by redesignating paragraph (8) as paragraph (10) and 
        inserting after paragraph (7) the following:
            ``(8) developing policies, in consultation with the 
        Administrator of the Small Business Administration, that ensure 
        that small businesses and small businesses owned and controlled 
        by socially and economically disadvantaged persons are provided 
        with the maximum practicable opportunities to participate in 
        procurements that are conducted for amounts below the 
        simplified acquisition threshold;
            ``(9) developing policies that will promote achievement of 
        goals for participation by small businesses and small 
        businesses owned and controlled by socially and economically 
        disadvantaged individuals;''.

SEC. 4012. PROCEDURES FOR PURCHASES BELOW MICRO-PURCHASE THRESHOLD.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.) is amended by inserting after section 4A, as added by section 
4001, the following new section:

``SEC. 4B. PROCEDURES APPLICABLE TO PURCHASES BELOW MICRO-PURCHASE 
              THRESHOLD.

    ``(a) Requirements.--(1) The head of each executive agency shall 
ensure that contracting activities of that agency, in awarding a 
contract with a price exceeding the micro-purchase threshold, comply 
with the requirements of section 8(a) of the Small Business Act (15 
U.S.C. 637(a)) and section 2323 of title 10, United States Code, or 
section 316 of the Federal Property and Administrative Services Act of 
1949, as applicable to that agency.
    ``(2) The authority under part 13.106(a)(1) of the Federal 
Acquisition Regulation (48 C.F.R. 13.106(a)(1)), as in effect on 
November 18, 1993, to make purchases without securing competitive 
quotations does not apply to any purchases with a price exceeding the 
micro-purchase threshold.
    ``(3) The head of each executive agency shall ensure that 
contracting activities of that agency comply with the requirements of 
section 15(j) of the Small Business Act (15 U.S.C. 644(j)), relating to 
the small business reserve.
    ``(b) Exclusions for Micro-Purchases.--A purchase by an executive 
agency with an anticipated value of the micro-purchase threshold or 
less is not subject to the Act of March 3, 1933, commonly referred to 
as the `Buy American Act' (41 U.S.C. 10a-10c).
    ``(c) Certain Contracting Officials Not To Be Considered 
Procurement Officials.--Any civilian officer or employee, and any 
member of the Armed Forces, who has authority to enter into contracts 
but whose contracting authority is limited to the amount of the micro-
purchase threshold or less is not a procurement official as defined in 
paragraph (3)(A) of section 27(p) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 423(p)).
    ``(d) Implementation Through FAR.--The provisions of subsections 
(a), (b), and (c) shall be implemented through the Federal Acquisition 
Regulation.
    ``(e) Micro-Purchase Threshold Defined.--For purposes of this 
subsection, the micro-purchase threshold is the amount of $2,500, 
adjusted on October 1 of each year divisible by 5 to the equivalent 
amount in constant fiscal year 1993 dollars (rounded to the nearest 
$100).''.

SEC. 4013. PROCUREMENT NOTICE.

    (a) Continuation of Existing Notice Thresholds.--Subsection (a) of 
section 18 of the Office of Federal Procurement Policy Act (41 U.S.C. 
416) is amended as follows:
            (1) Paragraph (1) is amended--
                    (A) by striking out ``the small purchase 
                threshold'' each place it appears and inserting in lieu 
                thereof ``the simplified acquisition threshold'';
                    (B) by striking out ``(c)--'' in the matter 
                preceding subparagraph (A) and inserting in lieu 
                thereof ``(c):'';
                    (C) by striking out ``an executive'' at the 
                beginning of subparagraphs (A) and (C) and inserting in 
                lieu thereof ``An executive'';
                    (D) by striking out the semicolon at the end of 
                subparagraph (A) and inserting in lieu thereof a 
                period; and
                    (E) by amending subparagraph (B) to read as 
                follows:
            ``(B) An executive agency intending to solicit bids or 
        proposals for a contract for property or services for a price 
        expected to exceed $10,000 but not to exceed the simplified 
        acquisition threshold shall post a notice of solicitation 
        described in subsection (b). The notice shall be posted at the 
        contracting office issuing the solicitation or shall be made 
        available through an electronic system with a FACNET capability 
        that at least meets the requirements of paragraphs (1)(A) and 
        (2)(A) of section 29(b). The notice shall be posted for a 
        period of not less than 10 days, except that in the case of a 
        posting made through an electronic system with such a FACNET 
        capability, the posting may be for a period of less than 10 
        days as prescribed in the Federal Acquisition Regulation.''.
            (2) Paragraph (3)(B) is amended by inserting after ``(B)'' 
        the following: ``in the case of a contract or order for an 
        amount expected to exceed the simplified acquisition 
        threshold,''.
    (b) Opportunity for All Responsible Potential Offerors.--Such 
subsection is further amended by adding at the end the following:
    ``(4) An executive agency intending to solicit offers for a 
contract for which a notice of solicitation is required to be posted 
under paragraph (1)(B) shall ensure that all potential offerors are 
permitted to respond to the solicitation for the contract within the 
period of time specified in the solicitation for the submission of 
offers.''.
    (c) Establishment of Deadline for Submission of Offers.--Such 
subsection is further amended by inserting after paragraph (4), as 
added by subsection (b), the following new paragraph:
    ``(5) An executive agency shall establish a deadline for the 
submission of all bids or proposals in response to a notice of 
solicitation with respect to which no such deadline is provided by 
statute.''.
    (d) Exceptions.--Subsection (c) of such section is amended by 
adding at the end the following new paragraph:
    ``(4)(A) The requirements of subsection (a)(1) shall not apply in 
the case of an acquisition accomplished through the use of an 
electronic system with a FACNET capability, as described in section 29 
and certified under section 2302a of title 10, United States Code, or 
section 302A of the Federal Property and Administrative Services Act of 
1949.
    ``(B) The Federal Acquisition Regulation shall provide for minimum 
periods of time for submission of offers for acquisitions described in 
subparagraph (A). Such periods shall provide offerors a reasonable 
opportunity to respond.
    ``(C) A notice of solicitation of bids or proposals for an 
acquisition described in subparagraph (A) shall include the matter 
described in under subsection (b).''.

SEC. 4014. GAO TEST AND REPORT ON PERFORMANCE OF SIMPLIFIED ACQUISITION 
              THRESHOLD.

    (a) Performance Test.--The Comptroller General of the United States 
shall collect data and assess the effects of the simplified acquisition 
threshold, as established in section 4A of the Office of Federal 
Procurement Policy Act, on the participation of small business concerns 
(including small business concerns owned and controlled by socially and 
economically disadvantaged individuals) in procurement awards of less 
than $100,000 and the benefits and detriments, if any, to the buying 
activities of the various Executive agencies.
    (b) Data To Be Collected.--Data collected under subsection (a) 
shall include data regarding whether the establishment of the 
simplified acquisition threshold has improved the acquisition process 
in terms of reduced paperwork, financial or other savings to the 
Federal Government, and any increase in the number of contractors 
participating in the contracting process.
    (c) Period.--Data shall be collected for purposes of subsection (a) 
during the period beginning with the first full fiscal year quarter 
after the effective date of the amendments made by section 4001 and 
ending on September 30, 1997.
    (d) Report.--By March 1, 1998, the Comptroller General shall submit 
to Congress a report on the effects of the establishment of the 
simplified acquisition threshold by the amendments made by section 
4001.

  PART III--INAPPLICABILITY OF LAWS TO ACQUISITIONS NOT IN EXCESS OF 
                    SIMPLIFIED ACQUISITION THRESHOLD

                          Subpart A--Generally

SEC. 4021. INAPPLICABILITY OF FUTURE ENACTED PROCUREMENT LAWS TO 
              CONTRACTS NOT EXCEEDING THE SIMPLIFIED ACQUISITION 
              THRESHOLD.

    (a) Armed Services.--Section 2302a of title 10, United States Code, 
as added by section 4003(a), is amended by adding at the end the 
following new subsection:
    ``(b) Construction With Future Enactments.--A provision of law 
enacted after the date of the enactment of the Federal Acquisition 
Improvement Act of 1994 shall not be construed as applicable to 
purchases of property or services by an agency named in section 2303 of 
this title for an amount not in excess of the simplified acquisition 
threshold unless that provision of law specifically refers to this 
section and specifically states that such provision of law modifies or 
supersedes this section.''.
    (b) Agencies.--Section 302A of the Federal Property and 
Administrative Services Act of 1949, as added by section 4004(a), is 
amended by adding at the end the following new subsection:
    ``(b) Construction With Future Enactments.--A provision of law 
enacted after the date of the enactment of the Federal Acquisition 
Improvement Act of 1994 shall not be construed as applicable to 
purchases of property or services by an executive agency for an amount 
not in excess of the simplified acquisition threshold unless that 
provision of law specifically refers to this section and specifically 
states that such provision of law modifies or supersedes this 
section.''.

                 Subpart B--Armed Services Acquisitions

SEC. 4031. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    Section 2302a of title 10, United States Code, as amended by 
section 4021, is further amended by adding at the end the following new 
subsection:
    ``(c) Inapplicability of Certain Provisions of Law.--The following 
provisions of law (and regulations prescribed under such provisions) 
shall not apply to any contract entered into by the Department of 
Defense in an amount not greater than the simplified acquisition 
threshold:
            ``(1) Section 2306(b) of this title (relating to 
        prohibition on contingent fees).
            ``(2) Section 2313 of this title (relating to examination 
        of books and records of contractor).
            ``(3) Section 2384(b) of this title (relating to 
        requirement to identify suppliers and sources of supplies).
            ``(4) Section 2393(d) of this title (relating to 
        prohibition against doing business with certain offerors of 
        contractors).
            ``(5) Section 2402 of this title (relating to prohibition 
        on limitation of subcontractor direct sales).
            ``(6) Section 2408(a) of this title (relating to 
        prohibition on persons convicted of defense-contract related 
        felonies).
            ``(7) Section 2410b of this title (relating to contractor 
        inventory accounting system standards).
            ``(8) Section 2534 of this title (relating to miscellaneous 
        limitations on procurement of goods other than American goods).
            ``(9) Section 27(e) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 423(e)).
            ``(10) The Drug-Free Workplace Act of 1988 (subtitle D of 
        title V of Public Law 100-690; 41 U.S.C. 701 et seq.).''.

SEC. 4032. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN 
              PROVISIONS OF LAW.

    (a) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 2306(b) of title 10, United States Code, is 
amended by adding at the end the following: ``This subsection does not 
apply to a contract that is for an amount not in excess of the 
simplified acquisition threshold.''.
    (b) Inapplicability of Authority To Examine Books and Records of 
Contractors.--Section 2313 of title 10, United States Code, as amended 
by section 2201, is further amended by adding at the end of subsection 
(f) the following:
            ``(2) A contract that is for an amount not in excess of the 
        simplified acquisition threshold.''.
    (c) Inapplicability of Requirement To Identify Suppliers and 
Sources of Supplies.--Section 2384(b) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(3) The regulations prescribed pursuant to paragraph (1) do not 
apply to a contract for an amount that does not exceed the simplified 
acquisition threshold.''.
    (d) Inapplicability of Prohibition Against Doing Business with 
Certain Offerors or Contractors.--Section 2393(d) of title 10, United 
States Code, is amended in the second sentence by striking out 
``above'' and all that follows and inserting in lieu thereof ``in 
excess of the simplified acquisition threshold.''.
    (e) Inapplicability of Prohibition on Limiting Subcontractor Direct 
Sales to the United States.--Section 2402 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) This section does not apply to a contract that is for an 
amount not in excess of the simplified acquisition threshold.''.
    (f) Inapplicability of Prohibition on Persons Convicted of Defense-
related Felonies.--Section 2408(a) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(4) In this subsection, the term `defense contract' means a 
contract in an amount in excess of the simplified acquisition 
threshold.''.
    (g) Inapplicability of contractor inventory accounting system 
standards.--Section 2410b of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The Secretary''; and
            (2) by adding at the end the following:
    ``(b) The regulations prescribed pursuant to subsection (a) shall 
not apply to a contract that is for an amount not in excess of the 
simplified acquisition threshold.''.
    (h) Inapplicability of Miscellaneous Procurement Limitations.--
Section 2534 of title 10, United States Code, is amended by adding at 
the end the following:
    ``(g) Inapplicability to Contracts under Simplified Acquisition 
Threshold.--This section does not apply to a contract for an amount 
that does not exceed the simplified acquisition threshold.''.

                Subpart C--Civilian Agency Acquisitions

SEC. 4041. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    Section 302A of the Federal Property and Administrative Services 
Act of 1949, as amended by section 4021(b), is further amended by 
adding at the end the following new subsection:
    ``(c) Inapplicability of Certain Provisions of Law.--The following 
provisions of law (and regulations prescribed under such provisions) 
shall not apply to any contract entered into by an executive agency in 
an amount not greater than the simplified acquisition threshold:
            ``(1) Sections 303G, 304(a), and 304C of this Act.
            ``(2) Section 27(e) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 423(e)).
            ``(3) The Drug-Free Workplace Act of 1988 (subtitle D of 
        title V of Public Law 100-690; 41 U.S.C. 701 et seq.).''.

SEC. 4042. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN 
              PROVISIONS OF LAW.

    (a) Inapplicability of Prohibition on Limiting Subcontractor Direct 
Sales to the United States.--Section 303G of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253g) is amended by 
adding at the end the following new subsection:
    ``(c) This section does not apply to a contract for an amount that 
is not in excess of the simplified acquisition threshold.''.
    (b) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 304(a) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254(a)) is amended by 
adding at the end the following: ``The preceding sentence does not 
apply to a contract for an amount that is not in excess of the 
simplified acquisition threshold.''.
    (c) Inapplicability of Authority To Examine Books and Records of 
Contractors.--Section 304C of the Federal Property and Administrative 
Services Act of 1949, as added by section 2251(a), is amended by adding 
at the end of subsection (e) the following:
            ``(2) A contract that is for an amount not in excess of the 
        simplified acquisition threshold.''.

                   Subpart D--Acquisitions Generally

SEC. 4051. CONFORMANCE OF CERTAIN PROCUREMENT INTEGRITY REQUIREMENTS.

    Subsection (e)(7)(A) of section 27 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 423) is amended by inserting after 
``$100,000'' the following: ``or the simplified acquisition threshold, 
whichever is greater''.

SEC. 4052. INAPPLICABILITY OF THE DRUG-FREE WORKPLACE ACT OF 1988.

    Section 5152(a)(1) of the Drug-Free Workplace Act of 1988 (subtitle 
D of title V of the Anti-Drug Abuse Act of 1988; Public Law 100-690; 41 
U.S.C. 701(a)(1)) is amended by striking out ``of $25,000 or more from 
any Federal agency'' and inserting in lieu thereof ``in excess of the 
simplified acquisition threshold (as defined in section 4A of such Act) 
by any Federal agency''.

                     PART IV--CONFORMING AMENDMENTS

SEC. 4071. ARMED SERVICES ACQUISITIONS.

    (a) Simplified Acquisition Procedures.--Section 2304(g) of title 
10, United States Code, is amended--
            (1) in paragraph (1), by striking out ``small purchases of 
        property and services'' and inserting in lieu thereof 
        ``purchases of property and services for amounts not in excess 
        of the simplified acquisition threshold'';
            (2) by striking out paragraph (2);
            (3) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively;
            (4) in paragraph (2), as so redesignated--
                    (A) by striking out ``small purchase threshold'' 
                and inserting in lieu thereof ``simplified acquisition 
                threshold''; and
                    (B) by striking out ``small purchase procedures'' 
                and inserting in lieu thereof ``simplified 
                procedures''; and
            (5) in paragraph (3), as so redesignated, by striking out 
        ``small purchase procedures'' and inserting in lieu thereof 
        ``simplified procedures''.
    (b) Solicitation Content Requirement.--Section 2305(a)(2) of such 
title is amended by striking out ``small purchases)'' in the matter 
preceding subparagraph (A) and inserting in lieu thereof ``a purchase 
for an amount not in excess of the simplified acquisition threshold)''.
    (c) Cost Type Contracts.--Section 2306(e)(2)(A) of such title is 
amended by striking out ``small purchase threshold'' and inserting in 
lieu thereof ``simplified acquisition threshold''.

SEC. 4072. CIVILIAN AGENCY ACQUISITIONS.

    (a) Simplified Acquisition Procedures.--Section 303(g) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253(g)) is amended--
            (1) in paragraph (1), by striking out ``small purchases of 
        property and services'' and inserting in lieu thereof 
        ``purchases of property and services for amounts not in excess 
        of the simplified acquisition threshold'';
            (2) by striking out paragraph (2);
            (3) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively;
            (4) in paragraph (2), as so redesignated--
                    (A) by striking out ``small purchase threshold'' 
                and inserting in lieu thereof ``simplified acquisition 
                threshold''; and
                    (B) by striking out ``small purchase procedures'' 
                and inserting in lieu thereof ``simplified 
                procedures'';
            (5) in paragraph (3), as so redesignated, by striking out 
        ``small purchase procedures'' and inserting in lieu thereof 
        ``the simplified procedures''; and
            (6) by striking out paragraph (5) and inserting in lieu 
        thereof the following:
    ``(4) In this subsection, the term `simplified acquisition 
threshold' has the meaning given such term in section 4A of the Office 
of Federal Procurement Policy Act.''.
    (b) Solicitation Content Requirement.--Section 303A(b) of such Act 
(41 U.S.C. 253a(b)) is amended by striking out ``small purchases)'' in 
the matter preceding paragraph (1) and inserting in lieu thereof ``a 
purchase for an amount not in excess of the simplified acquisition 
threshold)''.
    (c) Cost Type Contracts.--Section 304(b) of such Act (41 U.S.C. 
254(b)) is amended in the third sentence by striking out ``either 
$25,000'' and inserting in lieu thereof ``either the simplified 
acquisition threshold''.

SEC. 4073. OFFICE OF FEDERAL PROCUREMENT POLICY ACT.

    Section 19(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 417(a)) is amended by striking out ``procurements, other than 
small purchases,'' and inserting in lieu thereof ``procurements for 
amounts in excess of the simplified acquisition threshold''.

                    PART V--REVISION OF REGULATIONS

SEC. 4081. REVISION REQUIRED.

    (a) Federal Acquisition Regulation.--(1) Not later than one year 
after the date of the enactment of this Act, the Federal Acquisition 
Regulatory Council established by section 25(a) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 421(a)) shall--
            (A) review the Federal Acquisition Regulation to identify 
        regulations that are applicable to acquisitions in excess of a 
        specified amount that is less than $100,000; and
            (B) amend the regulations so identified as necessary to 
        provide that such regulations do not apply to acquisitions that 
        are not in excess of the simplified acquisition threshold.
    (2) Paragraph (1) does not apply in the case of a regulation for 
which such an amendment would not be in the national interest, as 
determined by the Council.
    (b) Supplemental Regulations.--Not later than 90 days after the 
date on which the review required by subsection (a) is completed, the 
head of each Federal agency that has issued regulations, policies, or 
procedures referred to in section 25(c)(2) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 421(c)(2)) shall--
            (1) identify any such regulation, policy, or procedure that 
        is applicable to acquisitions in excess of a specified amount 
        that is less than $100,000; and
            (2) pursuant to section 22 of such Act (41 U.S.C. 418b), 
        publish amendments to the regulations so identified as 
        necessary to provide that such regulations, policies, and 
        procedures do not apply to acquisitions that are not in excess 
        of the simplified acquisition threshold.
    (c) Definitions.--In this section:
            (1) The term ``simplified acquisition threshold'' has the 
        meaning given such term in section 4A of the Office of Federal 
        Procurement Policy Act, as added by section 4001.
            (2) The term ``Federal agency'' has the meaning given such 
        term in section 3(b) of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 472(b)).

           Subtitle B--Socioeconomic and Small Business Laws

SEC. 4101. PAYMENT PROTECTIONS FOR SUBCONTRACTORS AND SUPPLIERS.

    (a) Regulations.--
            (1) In general.--The Administrator for Federal Procurement 
        Policy shall prescribe in regulations the requirements 
        described in paragraph (2).
            (2) Procedures relating to compliance with payment terms.--
        (A) Under procedures established in the regulations, upon the 
        assertion by a subcontractor or supplier of a contractor 
        performing a Government contract that the subcontractor or 
        supplier has not been paid by the prime contractor in 
        accordance with the payment terms of the subcontract, purchase 
        order, or other agreement with the prime contractor, the 
        contracting officer may determine the following:
                    (i) With respect to a construction contract, 
                whether the contractor has made progress payments to 
                the subcontractor or supplier in compliance with 
                chapter 39 of title 31, United States Code.
                    (ii) With respect to a contract other than a 
                construction contract, whether the contractor has made 
                progress or other payments to the subcontractor or 
                supplier in compliance with the terms of the 
                subcontract, purchase order, or other agreement with 
                the prime contractor.
                    (iii) With respect to either a construction 
                contract or a contract other than a construction 
                contract, whether the contractor has made final payment 
                to the subcontractor or supplier in compliance with the 
                terms of the subcontract, purchase order, or other 
                agreement with the prime contractor.
                    (iv) With respect to either a construction contract 
                or a contract other than a construction contract, 
                whether any certification of payment of the 
                subcontractor or supplier accompanying the contractor's 
                payment request to the Government is accurate.
            (B) If the contracting officer determines that the prime 
        contractor is not in compliance with any matter referred to in 
        clause (i), (ii), or (iii) of subparagraph (A), the contracting 
        officer may, under procedures established in the regulations--
                    (i) encourage the prime contractor to make timely 
                payment to the subcontractor or supplier; or
                    (ii) reduce or suspend progress payments with 
                respect to amounts due to the prime contractor.
            (C) If the contracting officer determines that a 
        certification referred to in clause (iv) of subparagraph (A) is 
        inaccurate in any material respect, the contracting officer 
        shall, under procedures established in the regulations, 
        initiate appropriate administrative or other remedial action.
            (D) This paragraph shall apply with respect to any 
        Government contract, other than a Department of Defense 
        contract, that is in effect on the date of promulgation of the 
        regulations under this subsection or that is awarded after such 
        date.
    (b) Inapplicability to Certain Contracts.--The regulations 
prescribed under this section shall not apply to the following 
contracts:
            (1) A contract that is for an amount not in excess of the 
        simplified acquisition threshold (within the meaning of section 
        4A of the Office of Federal Procurement Policy Act).
            (2) A contract for the acquisition of commercial items (as 
        that term is defined in section 315 of the Federal Property and 
        Administrative Services Act of 1949).
    (c) Regulations Deadlines.--(1) The Administrator for Federal 
Procurement Policy shall publish proposed regulations under subsection 
(a) not later than 180 days after the date of the enactment of this 
Act.
    (2) The Administrator shall publish final regulations under 
subsection (a) not later than 270 days after the date of the enactment 
of this Act.
    (d) Amendments to Armed Services Provision.--Section 806 of the 
National Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190; 10 U.S.C. 2301 note) is amended by striking out 
subsection (c) and inserting in lieu thereof the following:
    ``(c) Inapplicability to Certain Contracts.--The regulations 
prescribed under this section shall not apply to the following 
contracts:
            ``(1) A contract that is for an amount not in excess of the 
        simplified acquisition threshold (within the meaning of section 
        4A of the Office of Federal Procurement Policy Act).
            ``(2) A contract for the acquisition of commercial items 
        (as that term is defined in section 2281 of title 10, United 
        States Code).''.

SEC. 4102. SMALL BUSINESS PROCUREMENT ADVISORY COUNCIL.

    (a) Establishment.--There is hereby established an interagency 
council to be known as the ``Small Business Procurement Advisory 
Council'' (hereinafter in this section referred to as the ``Council'').
    (b) Duties.--The duties of the Council are--
            (1) to serve as a forum for discussion of issues and 
        problems relating to, and ideas for improvement of, small 
        business procurement matters within the Federal Government;
            (2) to provide information to other departments and 
        agencies of the Federal Government about small business 
        procurement; and
            (3) to issue advisory reports to the Small Business 
        Administration and the Office of Federal Procurement Policy on 
        small business procurement matters.
    (c) Membership.--The Council shall be composed of the following 
members:
            (1) The Administrator of the Small Business Administration 
        (or the designee of the Administrator).
            (2) The Administrator for Federal Procurement Policy (or 
        the designee of the Administrator).
            (3) The Director of the Minority Business Development 
        Agency.
            (4) The head of each Office of Small and Disadvantaged 
        Business Utilization in each Federal agency having procurement 
        powers.
    (d) Co-Chairmen.--The Council shall be co-chaired by the 
Administrator of the Small Business Administration and the 
Administrator for Federal Procurement Policy.
    (e) Meetings.--The Council shall meet at the call of the chairmen, 
but not less often than four times a year and once each quarter.
    (f) Director.--The Chief Counsel for Advocacy of the Small Business 
shall serve as the director of the Council. The director may not vote 
on matters before the council except in the case of a tie vote among 
the members. The duties of the director shall be determined by the 
chairmen of the Council. The Chief Counsel for Advocacy shall receive 
no additional pay by reason of the counsel's service as director of the 
Council.
    (g) Annual Report.--Not later than 30 days after the end of each 
fiscal year, the Council shall submit to Congress a report detailing 
the activities of the Council in the preceding fiscal year in carrying 
out this section.

               Subtitle C--Miscellaneous Acquisition Laws

SEC. 4151. RESTRICTION ON USE OF NONCOMPETITIVE PROCEDURES FOR 
              PROCUREMENT FROM A SPECIFIED SOURCE.

    (a) Armed Services Acquisitions.--Section 2304 of title 10, United 
States Code, is further amended--
            (1) in subsection (c)(5), by inserting ``subject to 
        subsection (k),'' after ``(5)''; and
            (2) by adding at the end the following new subsection:
    ``(k)(1) It is the policy of Congress that no legislation should be 
enacted that requires a procurement by an agency to be made from a 
specified non-Federal Government source.
    ``(2) A provision of law may not be construed as requiring a 
procurement by an agency to be made from a specified non-Federal 
Government source unless that provision of law--
            ``(A) specifically refers to this subsection;
            ``(B) specifically identifies the particular non-Federal 
        Government source from which the procurement is to be made; and
            ``(C) specifically states that the procurement from that 
        source is required by such provision of law in contravention of 
        the policy set forth in paragraph (1).''.
    (b) Civilian Agency Acquisitions.--Section 303 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253) is 
amended--
            (1) in subsection (c)(5), by inserting ``subject to 
        subsection (h),'' after ``(5)''; and
            (2) by adding at the end the following new subsection:
    ``(h)(1) It is the policy of Congress that no legislation should be 
enacted that requires a procurement by an executive agency to be made 
from a specified non-Federal Government source.
    ``(2) A provision of law may not be construed as requiring a 
procurement by an executive agency to be made from a specified non-
Federal Government source unless that provision of law--
            ``(A) specifically refers to this subsection;
            ``(B) specifically identifies the particular non-Federal 
        Government source involved; and
            ``(C) specifically states that the procurement from that 
        source is required by such provision of law in contravention of 
        the policy set forth in paragraph (1).''.

SEC. 4152. REPEAL OF OBSOLETE PROVISION.

    Section 308 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 258) is repealed.

                     TITLE V--STANDARDS OF CONDUCT

SEC. 5001. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.

    (a) Amendment of OFPP Act.--The Office of Federal Procurement 
Policy Act, as amended by section 1091, is further amended by inserting 
after section 22 the following new section 23:

``SEC. 23. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.

    ``(a) Limitation on Use of Contract Advisory and Assistance 
Services.--The head of an agency may not provide for an evaluation or 
analysis of any aspect of a proposal submitted for an acquisition by 
that agency to be conducted by a person who is not an employee of an 
executive agency or a member of the Armed Forces unless the agency head 
determines that employees or members with adequate training and 
capability to perform the evaluation or analysis are not readily 
available within the agency or any other executive agency.
    ``(b) Compliance With FAR Standards.--In the administration of this 
section, the head of each executive agency shall comply with the 
Federal Acquisition Regulation in determining whether expertise is 
readily available and in determining the standards of adequate training 
and capability of employees and members of the Armed Forces to conduct 
acquisitions.
    ``(c) Definition.--For purposes of this section, the term 
`employee' has the meaning given such term by section 2105 of title 5, 
United States Code.''.
    (b) Requirement for Guidance and Regulations.--
            (1) Guidance and regulations required.--The Federal 
        Acquisition Regulatory Council established by section 25(a) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) 
        shall provide guidance and promulgate regulations regarding--
                    (A) what actions Federal agencies are required to 
                take to determine whether expertise is readily 
                available within the Federal Government before 
                contracting for advisory and technical services to 
                conduct acquisitions; and
                    (B) the manner in which Federal employees with 
                expertise may be shared with agencies needing expertise 
                for such acquisitions.
            (2) Definition.--In paragraph (1), the term ``employee'' 
        has the meaning given such term by section 2105 of title 5, 
        United States Code.
            (3) Deadline.--The guidance and regulations required by 
        paragraph (1) shall be provided and promulgated not later than 
        180 days after the date of the enactment of this Act.

SEC. 5002. REPEAL OF EXECUTED REQUIREMENT FOR STUDY AND REPORT.

    Section 17 of the Office of Federal Procurement Policy Act (41 
U.S.C. 415) is repealed.

SEC. 5003. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED FOR 
              ACQUISITION REGULATIONS.

    Section 22 of the Office of Federal Procurement Policy Act (41 
U.S.C. 418b) is amended--
            (1) by striking out ``30 days'' in subsection (a) and 
        inserting in lieu thereof ``45 days''; and
            (2) by adding at the end of subsection (d) the following 
        new paragraph:
    ``(3) A policy, regulation, procedure, or form described in 
subsection (a) may (notwithstanding that subsection) take effect 
earlier than 45 days after the date of publication thereof in the 
Federal Register pursuant to subsection (b) if the officer authorized 
to issue the procurement policy, regulation, procedure, or form 
determines that compelling circumstances make compliance with the 45-
day requirement under subsection (a) impracticable. However, the 
policy, regulation, procedure, or form may not take effect earlier than 
30 days after the publication date except as provided in paragraph 
(1).''.

SEC. 5004. REPEAL OF SUPERSEDED AND OBSOLETE LAWS.

    (a) Repeal.--The following sections of title 10, United States 
Code, are repealed: sections 2207, 2397, 2397a, 2397b, and 2397c.
    (b) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 131 
        of such title is amended by striking out the item relating to 
        section 2207.
            (2) The table of sections at the beginning of chapter 141 
        of such title is amended by striking out the items relating to 
        sections 2397, 2397a, 2397b, and 2397c.

                TITLE VI--DEFENSE TRADE AND COOPERATION

SEC. 6001. EXCEPTION TO BUY AMERICAN ACT FOR MICRO-PURCHASES.

    Section 2 of title III of the Act of March 3, 1933 (41 U.S.C. 10a), 
commonly referred to as the ``Buy American Act'', is amended by adding 
at the end the following: ``This section shall not apply to 
manufactured articles, materials, or supplies procured under any 
contract the award value of which is less than or equal to the micro-
purchase threshold under section 4B of the Office of Federal 
Procurement Policy Act.''.

SEC. 6002. POLICY ON PURCHASE OF FOREIGN GOODS.

    (a) In General.--Section 2533 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2533. Policy on the purchase of foreign goods
    ``(a) Determination Under Buy American Act.-- In determining 
whether application of title III of the Act of March 3, 1933 (41 U.S.C. 
10a et seq.), popularly known as the `Buy American Act', is 
inconsistent with the public interest, the Secretary of Defense shall 
give adequate consideration to the following:
            ``(1) The bids or proposals of small business firms in the 
        United States which have offered to furnish American goods.
            ``(2) The bids or proposals of all other firms in the 
        United States which have offered to furnish American goods.
            ``(3) The balance of payments of the United States.
            ``(4) The cost of shipping goods which are other than 
        American goods.
            ``(5) Any duty, tariff, or surcharge which may enter into 
        the cost of using goods which are other than American goods.
            ``(6) Coordination of acquisition activities of the 
        Department of Defense with obligations contained in 
        international agreements and with the acquisition activities of 
        major United States allies.
            ``(7) The need to ensure that the Department of Defense has 
        access to advanced state-of-the-art commercial technology.
            ``(8) The need to protect the national technology and 
        industrial base, to preserve and enhance the national 
        technology employment base, and to provide for a defense 
        mobilization base.
            ``(9) The need to maintain the same source of supply for 
        spare and replacement parts either for an end item that 
        qualifies as an American good or to maintain or foster the 
        integration of the military and commercial industrial base.
            ``(10) National security interests of the United States.
    ``(b) In this section, the term `goods which are other than 
American goods' means--
            ``(1) an end product that is not mined, produced, or 
        manufactured in the United States; or
            ``(2) an end product that is manufactured in the United 
        States but which includes components mined, produced, or 
        manufactured outside the United States the aggregate cost of 
        which exceeds the aggregate cost of the components of such end 
        product that are mined, produced, or manufactured in the United 
        States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter V of chapter 148 of such title is amended by striking out 
the item relating to section 2533 and inserting in lieu thereof the 
following:

``2533. Policy on purchase of foreign goods.''.

SEC. 6003. CONSOLIDATION OF LIMITATIONS ON PROCUREMENT OF GOODS OTHER 
              THAN AMERICAN GOODS.

    Section 2534 of title 10, United States Code, is amended--
            (1) by striking out subsections (a) through (f);
            (2) by redesignating subsection (g), as added by section 
        4032, as subsection (d); and
            (3) by inserting after the section heading the following:
    ``(a) Limitation on Certain Procurements.--The Secretary of Defense 
may procure the following items only if they are manufactured by an 
entity that is part of the national technology and industrial base (as 
defined in section 2491(1) of this title):
            ``(1) Buses.--Multipassenger motor vehicles (buses).
            ``(2) Chemical weapons antidote.--Chemical weapons antidote 
        contained in automatic injectors (or components for such 
        injectors), but only if the company that manufactures the item 
        not only manufactures it in the United States but also meets 
        the following requirements:
                    ``(A) The company is an existing producer under the 
                industrial preparedness program at the time the 
                contract is awarded.
                    ``(B) The company has received all required 
                regulatory approvals.
                    ``(C) The company has the plant, equipment, and 
                personnel to perform the contract in existence in the 
                United States at the time the contract is awarded.
            ``(3) Valves and machine tools.--(A) Items in the following 
        categories:
                    ``(i) Powered and non-powered valves in Federal 
                Supply Classes 4810 and 4820 used in piping for naval 
                surface ships and submarines.
                    ``(ii) Machine tools in the Federal Supply Classes 
                for metal-working machinery numbered 3405, 3408, 3410 
                through 3419, 3426, 3433, 3438, 3441 through 3443, 
                3445, 3446, 3448, 3449, 3460, and 3461.
            ``(B) Contracts for the procurement of items described in 
        subparagraph (A) include contracts--
                    ``(i) for the use of such items in any property 
                under the control of the Department of Defense, 
                including Government-owned, contractor-operated 
                facilities; and
                    ``(ii) entered into by contractors on behalf of the 
                Department of Defense for the purposes of providing 
                such items to other contractors as Government-furnished 
                equipment.
            ``(C) In any case in which a contract for items described 
        in subparagraph (A) includes the procurement of more than one 
        Federal Supply Class of machine tools or machine tools and 
        accessories, each supply class shall be evaluated separately 
        for purposes of determining whether the limitation in this 
        subsection applies.
            ``(D) This paragraph is effective through fiscal year 1996.
            ``(4) Air circuit breakers.--Air circuit breakers for naval 
        vessels.
            ``(5) Sonobuoys.--Sonobuoys.
            ``(6) Ball bearings and roller bearings.--Ball bearings and 
        roller bearings, in accordance with subpart 225.71 of part 225 
        of the Defense Federal Acquisition Regulation Supplement, as in 
        effect on October 23, 1992. This paragraph is effective through 
        fiscal year 1995.
    ``(b) Exceptions.--The Secretary of Defense may waive the 
limitation in subsection (a) with respect to the procurement of an item 
listed in that subsection if the Secretary determines that any of the 
following apply:
            ``(1) Application of the limitation would cause 
        unreasonable costs or delays to be incurred.
            ``(2) United States producers of the item would not be 
        jeopardized by competition from a foreign country and that 
        country does not discriminate against defense items produced in 
        the United States to a greater degree than the United States 
        discriminates against defense items produced in that country.
            ``(3) Application of the limitation would impede 
        cooperative programs entered into between the Department of 
        Defense and a foreign country and that country does not 
        discriminate against defense items produced in the United 
        States to a greater degree than the United States discriminates 
        against defense items produced in that country.
            ``(4) Satisfactory quality items manufactured by an entity 
        that is part of the national technology and industrial base (as 
        defined in section 2491(1) of this title) are not available.
            ``(5) Application of the limitation would result in the 
        existence of only one source for the item that is an entity 
        that is part of the national technology and industrial base (as 
        defined in section 2491(1) of this title).
            ``(6) The procurement is for an amount less than the 
        simplified acquisition threshold and simplified purchase 
        procedures are being used.
            ``(7) Application of the limitation is not in the national 
        security interests of the United States.
            ``(8) Application of the limitation would adversely affect 
        a United States company.
    ``(c) Principle of Construction with Future Laws.--A provision of 
law may not be construed as modifying or superseding the provisions of 
this section, or as requiring funds to be limited, or made available, 
by the Secretary of Defense to a particular domestic source by 
contract, unless that provision of law--
            ``(1) specifically refers to this section;
            ``(2) specifically states that such provision of law 
        modifies or supersedes the provisions of this section; and
            ``(3) specifically identifies the particular domestic 
        source involved and states that the contract to be awarded 
        pursuant to such provision of law is being awarded in 
        contravention of this section.''.

SEC. 6004. INTERNATIONAL COOPERATIVE AGREEMENTS.

    (a) Defense International Agreements.--
            (1) Terminology revisions.--Section 2531 of title 10, 
        United States Code, is amended--
                    (A) in the subsection captions for subsections (a) 
                and (c), by striking out ``MOUs and Related'' and 
                inserting in lieu thereof ``International'';
                    (B) in subsection (a), by striking out ``proposed 
                memorandum of understanding, or any existing or 
                proposed agreement related to a memorandum of 
                understanding,'' in the matter preceding paragraph (1) 
                and inserting in lieu thereof ``proposed international 
                agreement, including a memorandum of understanding,'';
                    (C) by striking out ``memorandum of understanding 
                or related agreement'' each place it appears and 
                inserting in lieu thereof ``international agreement'';
                    (D) in subsection (b), by striking out ``memorandum 
                or related agreement'' each place it appears in the 
                second sentence and inserting in lieu thereof 
                ``international agreement''; and
                    (E) in subsection (c)--
                            (i) by striking out ``A'' after 
                        ``Agreements.--'' and inserting in lieu thereof 
                        ``An''; and
                            (ii) by striking out ``memorandum or 
                        agreement'' and inserting in lieu thereof 
                        ``international agreement''.
            (2) Expanded scope of agreements.--Subsection (a) of such 
        section is further amended by striking out ``research, 
        development, or production'' in the matter preceding paragraph 
        (1) and inserting in lieu thereof ``research, development, 
        production, or logistics support''.
            (3) Clerical amendments.--
                    (A) Section heading.--The heading of such section 
                is amended to read as follows:
``Sec. 2531. Defense international agreements''.
                    (B) Table of sections.--The item relating to such 
                section in the table of sections at the beginning of 
                subchapter V of chapter 148 of such title is amended to 
                read as follows:

``2531. Defense international agreements.''.
    (b) Addition to Definition of Cooperative Project.--Section 
2350i(c)(1) of title 10, United States Code, is amended in subparagraph 
(B)--
            (1) by striking out ``or'' at the end of clause (ii);
            (2) by redesignating clause (iii) as clause (iv); and
            (3) by inserting after clause (ii) the following:
                            ``(iii) modifying existing military 
                        equipment to meet United States military 
                        requirements; or''.

SEC. 6005. MISCELLANEOUS REPEALS.

    (a) Repeal of Buy American Requirement for Policy Guidance.--Title 
III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly 
referred to as the ``Buy American Act'', is amended in section 4(g) (41 
U.S.C. 10b-1(g)) by striking out paragraphs (2)(C) and (3).
    (b) Repeal of Buy American Reporting Requirement.--Section 9096(b) 
of Public Law 102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) is repealed.
    (c) Repeal of Studies of Buy American Act Waivers.--Section 306 of 
the Trade Agreements Act of 1979 (19 U.S.C. 2516), relating to studies 
of certain employment effects and procurement effects of a waiver of 
title III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly 
referred to as the ``Buy American Act'', is repealed.

                      TITLE VII--COMMERCIAL ITEMS

                Subtitle A--Armed Services Acquisitions

SEC. 7001. ESTABLISHMENT OF NEW CHAPTER IN TITLE 10.

    (a) Establishment.--Part IV of subtitle A of title 10, United 
States Code, is amended by inserting before chapter 137 the following 
new chapter 136:

             ``CHAPTER 136--PROCUREMENT OF COMMERCIAL ITEMS

``Sec.
``2281. Definitions.
``2282. Preference for acquisition of commercial items.
``2283. Pricing documentation for commercial items.
``2284. Regulations; required terms and conditions.
``2285. Principle of construction with future laws.
``2286. Inapplicability of certain provisions of law.''.
    (b) Clerical Amendment.--The tables of chapters at the beginning of 
subtitle A of title 10, United States Code, and the beginning of part 
IV of such subtitle are amended by inserting before the item relating 
to chapter 137 the following new item:

``136. Procurement of Commercial Items......................    2281''.

SEC. 7002. DEFINITIONS.

    Chapter 136 of title 10, United States Code, as added by section 
7001, is amended by adding after the table of sections the following:
``Sec. 2281. Definitions
    ``In this chapter:
            ``(1) The term `commercial item' means any of the 
        following:
                    ``(A) Any item of a type customarily used in the 
                course of normal business operations for other than 
                Federal Government purposes, that--
                            ``(i) has been sold, leased, or licensed to 
                        the general public or to domestic State or 
                        local government entities; or
                            ``(ii) has been offered for sale, lease, or 
                        license to the general public or to domestic 
                        State or local government entities.
                    ``(B) An item intended to be used in the course of 
                normal business operations for other than Federal 
                Government purposes that is not yet available in the 
                commercial marketplace, but will be available in the 
                commercial marketplace in time to satisfy the delivery 
                requirements under a Federal Government solicitation.
                    ``(C) Any item that, but for--
                            ``(i) modifications of a type customarily 
                        available in the commercial marketplace, or
                            ``(ii) minor modifications made to meet 
                        Federal Government requirements,
                would satisfy the criteria in subparagraph (A) or (B).
                    ``(D) Any combination of items meeting the 
                requirements of subparagraph (A), (B), or (C) that are 
                of a type customarily combined and sold in combination 
                to the general public.
                    ``(E) Services offered and sold competitively, in 
                significant quantities, in the commercial marketplace 
                at established catalog prices or standard rates and 
                under standard commercial terms and conditions.
                    ``(F) Any item, combination of items, or service 
                referred to in subparagraphs (A) through (E), 
                notwithstanding the fact that the item, combination of 
                items, or service is transferred between or among 
                separate divisions, subsidiaries, or affiliates of a 
                contractor.
            ``(2) The term `nondevelopmental item' means any of the 
        following:
                    ``(A) Any previously developed item of supply that 
                is in use by a department or agency of the United 
                States, a State or local government, or a foreign 
                government with which the United States has a mutual 
                defense cooperation agreement.
                    ``(B) Any item of supply described in subparagraph 
                (A) that requires only minor modification or 
                modification of the type customarily available in the 
                commercial marketplace in order to meet the 
                requirements of the procuring department or agency.
                    ``(C) Any item of supply currently being produced 
                that does not meet the requirements of subparagraph (A) 
                or (B) solely because the item--
                            ``(i) is not yet in use; or
                            ``(ii) is not yet available in the 
                        commercial marketplace.
            ``(3) The term `component' means any item supplied to the 
        Federal Government as part of an end item or of another 
        component.
            ``(4) The term `commercial component' means any component 
        that is a commercial item.
            ``(5) The term `head of an agency' means the Secretary of 
        Defense, the Secretary of Transportation, and the Administrator 
        of the National Aeronautics and Space Administration.
            ``(6) The term `agency' means the Department of Defense, 
        the Coast Guard, and the National Aeronautics and Space 
        Administration.''.

SEC. 7003. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

    (a) In General.--Chapter 136 of title 10, United States Code, as 
amended by section 7002, is further amended by adding after section 
2281 the following new section:
``Sec. 2282. Preference for acquisition of commercial items
    ``(a) Preference.--(1) The head of an agency shall ensure that, to 
the maximum extent practicable--
            ``(A) requirements of the agency with respect to a 
        procurement of supplies are stated in terms of--
                    ``(i) functions to be performed,
                    ``(ii) performance required, or
                    ``(iii) essential physical characteristics;
            ``(B) such requirements are defined so that commercial 
        items may be procured to fulfill such requirements; and
            ``(C) such requirements are fulfilled through the 
        procurement of commercial items.
    ``(2) The head of an agency shall ensure that, to the maximum 
extent practicable, requirements of the agency with respect to a 
procurement of supplies are defined so that nondevelopmental items may 
be procured to fulfill such requirements in any case in which 
commercial items that fulfill the requirements of the agency are not 
available.
    ``(b) Implementation.--The head of each agency shall ensure that 
procurement officials in the agency, to the maximum extent 
practicable--
            ``(1) acquire commercial items to meet the needs of the 
        agency;
            ``(2) require prime contractors and subcontractors at all 
        levels under the contracts of the agency to incorporate 
        commercial items as components of items supplied to the agency;
            ``(3) modify requirements in appropriate cases to ensure 
        that the requirements can be met by commercial items;
            ``(4) state specifications in terms that enable and 
        encourage bidders and offerors to supply commercial items in 
        response to the solicitations of the agency;
            ``(5) revise the procurement policies, practices, and 
        procedures of the agency that are not required by law to reduce 
        any impediments in those policies, practices, and procedures to 
        the acquisition of commercial items; and
            ``(6) require training of appropriate personnel in the 
        acquisition of commercial items.
    ``(c) Existing or Prior Sources of Nondevelopmental Items.--(1) 
Notwithstanding subsection (a), the Secretary of Defense, the Secretary 
of a military department, or the head of a Defense Agency may, until 
five years after the date of the enactment of the Federal Acquisition 
Improvement Act of 1994, determine that it is in the Government's 
interests to permit existing or prior sources of nondevelopmental items 
to participate in a competition for a commercial item in a case in 
which a nondevelopmental item will compete with a commercial item under 
the same terms, conditions, and evaluation and award criteria.
    ``(2) Nondevelopmental items furnished by an existing or prior 
source that must be modified to meet the requirements of a solicitation 
for commercial items may be offered under such a solicitation, but only 
in a case in which the modifications--
            ``(A) are necessary to comply with the Government's 
        solicitation requirements; and
            ``(B) do not significantly alter the function or essential 
        physical characteristics of the items to be supplied.
    ``(3) The policies, procedures, solicitation provisions, and 
contract clauses applicable to commercial items under this chapter also 
shall apply to nondevelopmental items furnished by an existing or prior 
source that is permitted to participate in a competition conducted 
under this title.
    ``(d) Preliminary Market Research.--(1) The head of an agency shall 
conduct market research appropriate to the circumstances--
            ``(A) before developing new specifications for a 
        procurement by the agency; and
            ``(B) before soliciting bids or proposals for a contract in 
        excess of the simplified acquisition threshold.
    ``(2) The head of the agency shall use the results of market 
research to determine whether there are commercial items available 
that--
            ``(A) meet the requirements of the agency;
            ``(B) could be modified to meet such requirements; or
            ``(C) could meet such requirements if those requirements 
        were modified to a reasonable extent.''.
    (b) Repeal of Superseded Provision.--Section 2325 of title 10, 
United States Code, is repealed. The table of sections at the beginning 
of chapter 137 of such title is amended by striking out the item 
relating to section 2325.

SEC. 7004. PRICING DOCUMENTATION FOR COMMERCIAL ITEMS.

    (a) In General.--Chapter 136 of title 10, United States Code, as 
amended by section 7003, is further amended by adding after section 
2282 the following new section:
``Sec. 2283. Pricing documentation for commercial items
    ``(a) Requirement for Determination of Price Reasonableness.--(1) 
When the price of a commercial item is based on adequate price 
competition or on established catalog or market prices of items sold in 
sufficient quantities to the general public, the contracting officer 
shall presume that the price contained in the most advantageous 
evaluated offer (price and all other factors considered) received in 
response to a solicitation, or a price based on established catalog or 
market prices, is fair and reasonable unless the contracting officer 
has information that the price is not fair and reasonable. Before the 
award of a contract for which price is based on catalog or market 
prices, the contracting officer shall make reasonable efforts to 
establish the currency and accuracy of such prices.
    ``(2) When the price of a commercial item is not presumed fair and 
reasonable under paragraph (1), the contracting officer shall use price 
analysis to determine whether the price is fair and reasonable.
    ``(3) When required by the contracting officer before award of a 
contract or contract definitization, the offeror shall promptly furnish 
documentation, in the form regularly maintained in commercial 
operations, adequate to demonstrate the market price of the item or 
items or otherwise needed to establish a fair and reasonable price. All 
documentation received from an offeror, if not otherwise in the public 
domain and if requested by the offeror and marked as proprietary, shall 
be treated by the Government as confidential and exempt from disclosure 
to the extent permitted by section 552 of title 5. In this paragraph, 
the term `contract definitization' means agreement to contractual 
terms, specifications, and price.
    ``(4) In any case in which a contracting officer is able to 
determine under paragraph (1) or (2) that a price is reasonable, the 
procurement shall be exempt from section 2306a of this title.
    ``(5) In any case in which a contracting officer is unable to 
determine under paragraph (1) or (2) that a price is reasonable, the 
contracting officer may require cost or pricing data under section 
2306a of this title.
    ``(b) Government's Right To Audit.--(1) The United States shall 
have the right to audit all documentation provided by an offeror under 
subsection (a)(3) and all books and records of the offeror directly 
relating to such documentation, except that, if the offeror has made no 
representation as to the completeness of the documentation supplied, 
the United States shall have no right to audit for completeness. When 
contract price is established under this section, the United States 
shall have no audit rights other than those set out in this subsection.
    ``(2) The right under this subsection shall expire--
            ``(A) one year after the date of commencement of 
        performance of the contract, or one year after the date of 
        commencement of performance of the modification of the 
        contract, with respect to which the information was provided; 
        or
            ``(B) on such other date agreed upon by the parties at the 
        time of contract award or contract definitization.''.
    (b) Cross Reference.--Section 2306a of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(h) Additional Exceptions Regarding Commercial Items.--For 
provisions relating to additional exceptions for procurements of 
commercial items, see section 2283 of this title.''.

SEC. 7005. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.

    (a) In General.--Chapter 136 of title 10, United States Code, as 
amended by section 7004, is further amended by adding after section 
2283 the following new section:
``Sec. 2284. Regulations; required terms and conditions
    ``(a) In General.--The head of each agency shall prescribe 
regulations to implement this chapter in that agency. Such regulations 
shall be developed in consultation with the Administrator for Federal 
Procurement Policy. The regulations shall include provisions 
implementing the preference for commercial items set out in section 
2282 of this title.
    ``(b) Terms and Conditions.--The regulations prescribed under 
subsection (a) shall contain a set or sets of terms and conditions to 
be included in contracts for the acquisition of commercial items. Such 
terms and conditions shall, to the maximum extent practicable, include 
only those contract clauses that are determined by the head of the 
agency to be--
            ``(1) required to implement provisions of law applicable to 
        commercial item acquisitions; or
            ``(2) consistent with standard commercial practice.
    ``(c) Terms and Conditions for Components.--Such regulations shall 
provide that a prime contractor furnishing commercial items or items 
other than commercial items as items or components shall not be 
required to apply to any of its divisions, subsidiaries, or affiliates 
or any of its subcontractors or suppliers that are furnishing 
commercial items as components any clause, term, or condition except 
those determined by the head of the agency to be--
            ``(1) required to implement provisions of law applicable to 
        subcontractors furnishing commercial items; or
            ``(2) determined to be consistent with standard commercial 
        practice.
    ``(d) Market Acceptance.--The regulations prescribed under 
subsection (a) shall provide that, under appropriate conditions, the 
head of the agency may require an offeror to demonstrate, as a 
condition for being considered responsive, that the items offered meet, 
among other criteria, market acceptance criteria, unless such item has 
been satisfactorily supplied to an executive agency under current or 
recent contracts for the same or similar requirements.
    ``(e) Use of Fixed Price Contracts.--The regulations prescribed 
under subsection (a) shall include a requirement that firm, fixed price 
contracts, or fixed price contracts with economic price adjustment 
provisions, be used for the acquisition of commercial items and 
components.
    ``(f) Term of Contracts.--The regulations prescribed under 
subsection (a) shall provide that, to the extent practicable, contracts 
for acquisition of commercial items shall not require contract 
performance for a term longer than customary industry practice for the 
item being acquired. A contracting officer may include in a contract 
provisions for economic price adjustment if an extended period of 
performance under the contract cannot be avoided.
    ``(g) Contract Quality Requirements.--The regulations prescribed 
under subsection (a) shall include provisions that--
            ``(1) permit, to the maximum extent practicable, a 
        contractor under a commercial items acquisition to use the 
        existing quality assurance system of the contractor as a 
        substitute for compliance with an otherwise applicable 
        requirement for the Government to inspect or test the 
        commercial items before the contractor's tender of those items 
        for acceptance by the Government;
            ``(2) require that, to the maximum extent practicable, the 
        head of the agency take advantage of warranties (including 
        extended warranties) offered by offerors of commercial items 
        and use such warranties for the repair and replacement of 
        commercial items; and
            ``(3) set forth guidance regarding the use of past 
        performance of commercial items and sources as a factor in 
        contract award decisions.''.
    (b) Defense Contract Clauses.--
            (1) Repeal of dod authority.--Section 824(b) of the 
        National Defense Authorization Act for Fiscal Years 1990 and 
        1991 (Public Law 101-189; 10 U.S.C. 2325 note) is repealed.
            (2) Savings provision.--Notwithstanding subsections (b) and 
        (c) of section 2284 of title 10, U.S.C., as added by subsection 
        (a), a contract of the Department of Defense entered into 
        before October 1, 1994, and a subcontract entered into before 
        such date under such a contract, may include clauses developed 
        pursuant to paragraphs (2) and (3) of section 824(b) of the 
        National Defense Authorization Act for Fiscal Years 1990 and 
        1991 (Public Law 101-189; 10 U.S.C. 2325 note).

SEC. 7006. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.

    Chapter 136 of title 10, United States Code, as amended by section 
7005, is further amended by adding after section 2284 the following new 
section:
``Sec. 2285. Principle of construction with future laws
    ``A provision of law enacted after the date of the enactment of the 
Federal Acquisition Improvement Act of 1994 may not be construed as 
modifying or superseding any provision of this chapter unless that 
provision of law specifically refers to this section and specifically 
states that such provision of law modifies or supersedes such provision 
of this chapter.''.

SEC. 7007. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    (a) Inapplicable Provisions.--Chapter 136 of title 10, United 
States Code, as amended by section 7006, is further amended by adding 
after section 2285 the following new section:
``Sec. 2286. Inapplicability of certain provisions of law
    ``(a) Provisions Inapplicable to Prime Contractors.--The following 
provisions of law (and regulations prescribed under such provisions) 
shall not apply to any contract entered into by an agency for the 
procurement of a commercial item:
            ``(1) Section 2306(b) of this title (relating to 
        prohibition on contingent fees).
            ``(2) Section 2320 of this title (relating to rights in 
        technical data).
            ``(3) Section 2321 of this title (relating to validation of 
        proprietary data restrictions).
            ``(4) Section 2324 of this title (relating to allowable 
        costs).
            ``(5) Section 2384(b) of this title (relating to 
        requirement to identify suppliers and sources of supplies).
            ``(6) Section 2393(d) of this title (relating to 
        prohibition against doing business with certain offerors or 
        contractors).
            ``(7) Section 2402 of this title (relating to prohibition 
        on limitation of subcontractor direct sales).
            ``(8) Section 2408(a) of this title (relating to 
        prohibition on persons convicted of defense contract-related 
        felonies).
            ``(9) Section 2410b of this title (relating to contractor 
        inventory accounting system standards).
            ``(10) Section 843 of Public Law 103-160 (107 Stat. 1720) 
        (relating to reports of defense contractors of dealings with 
        terrorist countries).
            ``(11) Section 26 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 422) (relating to cost accounting 
        standards board).
            ``(12) Section 27(e) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 423(e)) (relating to procurement 
        integrity).
            ``(13) The Drug-Free Workplace Act of 1988 (subtitle D of 
        title V of Public Law 100-690; 41 U.S.C. 701 et seq.).
    ``(b) Provisions Inapplicable to Subcontractors and Other 
Entities.--
            ``(1) Laws inapplicable.--The following provisions of law 
        (and regulations prescribed under such provisions) shall not 
        apply to any entity described in paragraph (2):
                    ``(A) Each provision of law listed under subsection 
                (a).
                    ``(B) Sections 2533 and 2534 of this title 
                (relating to goods which are other than American 
                goods).
                    ``(C) The Act of March 3, 1933, commonly referred 
                to as the `Buy American Act' (41 U.S.C. 10a-10c).
            ``(2) Covered entities.--Paragraph (1) applies to each of 
        the following:
                    ``(A) Any division, subsidiary, or affiliate of a 
                prime contractor (other than the division, subsidiary, 
                or affiliate that is contracting with the Government 
                under the prime contract) or of a subcontractor of a 
                prime contractor, if such division, subsidiary, or 
                affiliate is furnishing a commercial item to the prime 
                contractor or subcontractor for purposes of carrying 
                out the prime contract or subcontract.
                    ``(B) Any subcontractor or supplier of a prime 
                contractor, if the subcontractor or supplier is 
                furnishing a commercial item to the prime contractor 
                for purposes of carrying out the prime contract.
    ``(c) Definition.--In this section, the term `prime contractor' 
means a person under contract directly with the Department of 
Defense.''.

SEC. 7008. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN 
              PROVISIONS OF LAW.

    (a) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 2306(b) of title 10, United States Code, as 
amended by section 4032(a), is further amended by inserting before the 
period at the end of the sentence added by section 4032(a) the 
following: ``or to a contract for the acquisition of commercial 
items''.
    (b) Inapplicability of Regulations on Rights in Technical Data.--
Section 2320 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(e) The regulations prescribed under subsection (a) shall not 
apply to contracts for the purchase of commercial items (as defined in 
section 2281 of this title).''.
    (c) Inapplicability of Requirement for Validation of Proprietary 
Data Restrictions.--Section 2321(a) of title 10, United States Code, is 
amended by inserting before the period at the end the following: ``, 
other than a contract for supplies or services that are commercial 
items (as defined in section 2281 of this title)''.
    (d) Inapplicability of Requirement To Identify Suppliers and 
Sources of Supplies.--Paragraph (2) of section 2384(b) of title 10, 
United States Code, is amended to read as follows:
    ``(2) The regulations prescribed pursuant to paragraph (1) do not 
apply to a contract that requires the delivery of supplies that are 
commercial items, as defined in section 2281 of this title.''.
    (e) Inapplicability of Prohibition Against Doing Business with 
Certain Offerors or Contractors.--Section 2393(d) of title 10, United 
States Code, as amended by section 4032(d), is further amended by 
adding at the end the following: ``The requirement shall not apply in 
the case of a subcontract for the acquisition of commercial items (as 
defined in section 2281 of this title).''.
    (f) Inapplicability of Prohibition on Limitation of Subcontractor 
Direct Sales.--Section 2402 of title 10, United States Code, as amended 
by section 4032(e), is further amended by adding at the end the 
following new subsection:
    ``(d)(1) An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under such contract 
that restricts sales by such subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict 
sales by that subcontractor to the United States in violation of the 
provision included in such contract pursuant to subsection (a) if the 
agreement does not result in the United States being treated 
differently with regard to the restriction than any other prospective 
purchaser of such commercial items from that subcontractor.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 2281 of this title.''.
    (g) Inapplicability of Prohibition on Persons Convicted of Defense-
Related Felonies.--Section 2408(a) of title 10, United States Code, is 
amended by adding at the end of paragraph (4), as added by section 
4032(f), the following: ``The term does not include a contract for the 
purchase of commercial items (as defined in section 2281 of this 
title).''.
    (h) Inapplicability of Contractor Inventory Accounting System 
Standards.--Section 2410b of title 10, United States Code, is amended 
by adding after subsection (b), as added by section 4032(g), the 
following:
    ``(c) The regulations prescribed pursuant to subsection (a) shall 
not apply to a contract for the purchase of commercial items (as 
defined in section 2281 of this title).''.

                Subtitle B--Civilian Agency Acquisitions

SEC. 7011. DEFINITIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1554, is further 
amended by adding after section 314 the following new section:

``SEC. 315. DEFINITIONS RELATING TO PROCUREMENT OF COMMERCIAL ITEMS.

    ``As used in this title:
            ``(1) The term `commercial item' means any of the 
        following:
                    ``(A) Any item of a type customarily used in the 
                course of normal business operations for other than 
                Federal Government purposes, that--
                            ``(i) has been sold, leased, or licensed to 
                        the general public or to domestic State or 
                        local government entities; or
                            ``(ii) has been offered for sale, lease, or 
                        license to the general public or to domestic 
                        State or local government entities.
                    ``(B) An item intended to be used in the course of 
                normal business operations for other than Federal 
                Government purposes that is not yet available in the 
                commercial marketplace, but will be available in the 
                commercial marketplace in time to satisfy the delivery 
                requirements under a Federal Government solicitation.
                    ``(C) Any item that, but for--
                            ``(i) modifications of a type customarily 
                        available in the commercial marketplace, or
                            ``(ii) minor modifications made to meet 
                        Federal Government requirements,
                would satisfy the criteria in subparagraph (A) or (B).
                    ``(D) Any combination of items meeting the 
                requirements of subparagraph (A), (B), or (C) that are 
                of a type customarily combined and sold in combination 
                to the general public.
                    ``(E) Services offered and sold competitively, in 
                significant quantities, in the commercial marketplace 
                at established catalog prices or standard rates and 
                under standard commercial terms and conditions.
                    ``(F) Any item, combination of items, or service 
                referred to in subparagraphs (A) through (E), 
                notwithstanding the fact that the item, combination of 
                items, or service is transferred between or among 
                separate divisions, subsidiaries, or affiliates of a 
                contractor.
            ``(2) The term `nondevelopmental item' means any of the 
        following:
                    ``(A) Any previously developed item of supply that 
                is in use by a department or agency of the United 
                States, a State or local government, or a foreign 
                government with which the United States has a mutual 
                defense cooperation agreement.
                    ``(B) Any item of supply described in subparagraph 
                (A) that requires only minor modification or 
                modification of the type customarily available in the 
                commercial marketplace in order to meet the 
                requirements of the procuring department or agency.
                    ``(C) Any item of supply currently being produced 
                that does not meet the requirements of subparagraph (A) 
                or (B) solely because the item--
                            ``(i) is not yet in use; or
                            ``(ii) is not yet available in the 
                        commercial marketplace.
            ``(3) The term `component' means any item supplied to the 
        Federal Government as part of an end item or of another 
        component.
            ``(4) The term `commercial component' means any component 
        that is a commercial item.''.

SEC. 7012. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7011, is further 
amended by adding after section 315 the following new section:

``SEC. 315A. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

    ``(a) Preference.--(1) The head of each executive agency shall 
ensure that, to the maximum extent practicable--
            ``(A) requirements of the executive agency with respect to 
        a procurement of supplies are stated in terms of--
                    ``(i) functions to be performed,
                    ``(ii) performance required, or
                    ``(iii) essential physical characteristics;
            ``(B) such requirements are defined so that commercial 
        items may be procured to fulfill such requirements; and
            ``(C) such requirements are fulfilled through the 
        procurement of commercial items.
    ``(2) The head of an agency shall ensure that, to the maximum 
extent practicable, requirements of the agency with respect to a 
procurement of supplies are defined so that nondevelopmental items may 
be procured to fulfill such requirements in any case in which 
commercial items that fulfill the requirements of the agency are not 
available.
    ``(b) Implementation.--The head of each executive agency shall 
ensure that procurement officials in that executive agency, to the 
maximum extent practicable--
            ``(1) acquire commercial items to meet the needs of the 
        executive agency;
            ``(2) require prime contractors and subcontractors at all 
        levels under the executive agency contracts to incorporate 
        commercial items as components of items supplied to the 
        executive agency;
            ``(3) modify requirements in appropriate cases to ensure 
        that the requirements can be met by commercial items;
            ``(4) state specifications in terms that enable and 
        encourage bidders and offerors to supply commercial items in 
        response to the solicitations of the executive agency;
            ``(5) revise the procurement policies, practices, and 
        procedures of the executive agency that are not required by law 
        to reduce any impediments in those policies, practices, and 
        procedures to the acquisition of commercial items; and
            ``(6) require training of appropriate personnel in the 
        acquisition of commercial items.
    ``(c) Existing or Prior Sources of Nondevelopmental Items.--(1) 
Notwithstanding subsection (a), the head of an executive agency may, 
until five years after the date of the enactment of the Federal 
Acquisition Improvement Act of 1994, determine that it is in the 
Government's interests to permit existing or prior sources of 
nondevelopmental items to participate in a competition for a commercial 
item in a case in which a nondevelopmental item will compete with a 
commercial item under the same terms, conditions, and evaluation and 
award criteria.
    ``(2) Nondevelopmental items furnished by an existing or prior 
source that must be modified to meet the requirements of a solicitation 
for commercial items may be offered under such a solicitation, but only 
in a case in which the modifications--
            ``(A) are necessary to comply with the Government's 
        solicitation requirements; and
            ``(B) do not significantly alter the function or essential 
        physical characteristics of the items to be supplied.
    ``(3) The policies, procedures, solicitation provisions, and 
contract clauses applicable to commercial items under this chapter also 
shall apply to nondevelopmental items furnished by an existing or prior 
source that is permitted to participate in a competition conducted 
under this title.
    ``(d) Preliminary Market Research.--(1) The head of an executive 
agency shall conduct market research appropriate to the circumstances--
            ``(A) before developing new specifications for a 
        procurement by that executive agency; and
            ``(B) before soliciting bids or proposals for a contract in 
        excess of the simplified acquisition threshold.
    ``(2) The head of an executive agency shall use the results of 
market research to determine whether there are commercial items 
available that--
            ``(A) meet the requirements of the executive agency;
            ``(B) could be modified to meet such requirements; or
            ``(C) could meet such requirements if those requirements 
        were modified to a reasonable extent.''.

SEC. 7013. PRICING DOCUMENTATION FOR COMMERCIAL ITEMS.

    (a) In General.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended 
by section 7012, is further amended by adding after section 315A the 
following new section:

``SEC. 315B. PRICING DOCUMENTATION FOR COMMERCIAL ITEMS.

    ``(a) Requirement for Determination of Price Reasonableness.--(1) 
When the price of a commercial item is based on adequate price 
competition or on established catalog or market prices of items sold in 
sufficient quantities to the general public, the contracting officer 
shall presume that the price contained in the most advantageous 
evaluated offer (price and all other factors considered) received in 
response to a solicitation, or a price based on established catalog or 
market prices, is fair and reasonable unless the contracting officer 
has information that the price is not fair and reasonable. Before the 
award of a contract for which price is based on catalog or market 
prices, the contracting officer shall make reasonable efforts to 
establish the currency and accuracy of such prices.
    ``(2) When the price of a commercial item is not presumed fair and 
reasonable under paragraph (1), the contracting officer shall use price 
analysis to determine whether the price is fair and reasonable.
    ``(3) When required by the contracting officer before award of a 
contract or contract definitization, the offeror shall promptly furnish 
documentation, in the form regularly maintained in commercial 
operations, adequate to demonstrate the market price of the item or 
items or otherwise needed to establish a fair and reasonable price. All 
documentation received from an offeror, if not otherwise in the public 
domain and if requested by the offeror and marked as proprietary, shall 
be treated by the Government as confidential and exempt from disclosure 
to the extent permitted by section 552 of title 5. In this paragraph, 
the term `contract definitization' means agreement to contractual 
terms, specifications, and price.
    ``(4) In any case in which a contracting officer is able to 
determine under paragraph (1) or (2) that a price is reasonable, the 
procurement shall be exempt from section 304B of this title.
    ``(5) In any case in which a contracting officer is unable to 
determine under paragraph (1) or (2) that a price is reasonable, the 
contracting officer may require cost or pricing data under section 
304B.
    ``(b) Government's Right To Audit.--(1) The United States shall 
have the right to audit all documentation provided by an offeror under 
subsection (a)(3) and all books and records of the offeror directly 
relating to such documentation, except that, if the offeror has made no 
representation as to the completeness of the documentation supplied, 
the United States shall have no right to audit for completeness. When 
contract price is established under this section, the United States 
shall have no audit rights other than those set out in this subsection.
    ``(2) The right under this subsection shall expire--
            ``(A) one year after the date of commencement of 
        performance of the contract, or one year after the date of 
        commencement of performance of the modification of the 
        contract, with respect to which the information was provided; 
        or
            ``(B) on such other date agreed upon by the parties at the 
        time of contract award or contract definitization.''.
    (b) Cross Reference.--Section 304B of the Federal Property and 
Administrative Services Act of 1949, as added by section 1251, is 
amended by adding at the end the following new subsection:
    ``(h) Additional Exceptions Regarding Commercial Items.--For 
provisions relating to additional exceptions for procurements of 
commercial items, see section 315B of this title.''.

SEC. 7014. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7013, is further 
amended by adding after section 315B the following new section:

``SEC. 315C. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.

    ``(a) In General.--The Administrator for Federal Procurement Policy 
shall prescribe regulations to implement sections 315 through 315E. The 
regulations shall include provisions implementing the preference for 
commercial items set out in section 315A.
    ``(b) Terms and Conditions.--The regulations prescribed under 
subsection (a) shall contain a set or sets of terms and conditions to 
be included in contracts for the acquisition of commercial end items. 
Such terms and conditions shall, to the maximum extent practicable, 
include only those contract clauses that are determined by the agency 
head to be--
            ``(1) required to implement provisions of law applicable to 
        commercial item acquisitions; or
            ``(2) consistent with standard commercial practice.
    ``(c) Terms and Conditions for Components.--Such regulations shall 
provide that a prime contractor furnishing commercial items or items 
other than commercial items as items or components shall not be 
required to apply to any of its divisions, subsidiaries, or affiliates 
or any of its subcontractors or suppliers that are furnishing 
commercial items as components any clause, term, or condition except 
those determined by the head of the agency to be--
            ``(1) required to implement provisions of law applicable to 
        subcontractors furnishing commercial items; or
            ``(2) determined to be consistent with standard commercial 
        practice.
    ``(d) Market Acceptance.--The regulations prescribed under 
subsection (a) shall provide that, under appropriate conditions, the 
agency head may require an offeror to demonstrate, as a condition for 
being considered responsive, that the items offered meet, among other 
criteria, market acceptance criteria, unless such item has been 
satisfactorily supplied to an executive agency under current or recent 
contracts for the same or similar requirements.
    ``(e) Use of Fixed Price Contracts.--The regulations prescribed 
under subsection (a) shall include a requirement that firm, fixed price 
contracts, or fixed price contracts with economic price adjustment 
provisions, be used for the acquisition of commercial items and 
components.
    ``(f) Term of Contracts.--The regulations prescribed under 
subsection (a) shall provide that, to the extent practicable, contracts 
for acquisition of commercial items shall not require contract 
performance for a term longer than customary industry practice for the 
item being acquired. A contracting officer may include in a contract 
provisions for economic price adjustment if an extended period of 
performance under the contract cannot be avoided.
    ``(g) Contract Quality Requirements.--The regulations prescribed 
under subsection (a) shall include provisions that--
            ``(1) permit, to the maximum extent practicable, a 
        contractor under a commercial items acquisition to use the 
        existing quality assurance system of the contractor as a 
        substitute for compliance with an otherwise applicable 
        requirement for the Government to inspect or test the 
        commercial items before the contractor's tender of those items 
        for acceptance by the Government;
            ``(2) require that, to the maximum extent practicable, the 
        executive agency take advantage of warranties (including 
        extended warranties) offered by offerors of commercial items 
        and use such warranties for the repair and replacement of 
        commercial items; and
            ``(3) set forth guidance regarding the use of past 
        performance of commercial items and sources as a factor in 
        contract award decisions.''.

SEC. 7015. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7014, is further 
amended by adding after section 315C the following new section:

``SEC. 315D. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.

    ``A provision of law enacted after the date of the enactment of the 
Federal Acquisition Improvement Act of 1994 may not be construed as 
modifying or superseding any provision of sections 315 through 315E 
unless that provision of law specifically refers to this section and 
specifically states that such provision of law modifies or supersedes 
such provision of those sections.''.

SEC. 7016. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 7015, is further 
amended by adding after section 315D the following new section:

``SEC. 315E. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    ``(a) Provisions Inapplicable to Prime Contractors.--Procurements 
of commercial items shall not be subject to the following provisions of 
law (or regulations prescribed under such provisions):
            ``(1) Section 303G of this Act (relating to prohibition on 
        limitation of subcontractor direct sales).
            ``(2) Section 304(a) of this Act (relating to prohibition 
        on contingent fees).
            ``(3) Section 26 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 422) (relating to cost accounting 
        standards board).
            ``(4) Section 27(e) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 423(e)) (relating to procurement 
        integrity).
            ``(5) The Drug-Free Workplace Act of 1988 (subtitle D of 
        title V of Public Law 100-690; 41 U.S.C. 701 et seq.).
    ``(b) Provisions Inapplicable to Subcontractors and Other 
Entities.--
            ``(1) Laws inapplicable.--The following provisions of law 
        (and regulations prescribed under such provisions) shall not 
        apply to any entity described in paragraph (2):
                    ``(A) Each provision of law listed under subsection 
                (a).
                    ``(B) The Act of March 3, 1933, commonly referred 
                to as the `Buy American Act' (41 U.S.C. 10a-10c).
            ``(2) Covered entities.--Paragraph (1) applies to each of 
        the following:
                    ``(A) Any division, subsidiary, or affiliate of a 
                prime contractor (other than the division, subsidiary, 
                or affiliate that is contracting with the Government 
                under the prime contract) or of a subcontractor of a 
                prime contractor, if such division, subsidiary, or 
                affiliate is furnishing a commercial item to the prime 
                contractor or subcontractor for purposes of carrying 
                out the prime contract or subcontract.
                    ``(B) Any subcontractor or supplier of a prime 
                contractor, if the subcontractor or supplier is 
                furnishing a commercial item to the prime contractor 
                for purposes of carrying out the prime contract.
    ``(c) Definition.--In this section, the term `prime contractor' 
means a person under contract directly with the Federal Government, 
other than the Department of Defense.''.

SEC. 7017. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY OF CERTAIN 
              PROVISIONS OF LAW.

    (a) Inapplicability of Prohibition on Limiting Subcontractor Direct 
Sales to the United States.--Section 303G of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253g), as amended by 
section 4042(a), is further amended by adding at the end the following 
new subsection:
    ``(d) An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under such contract 
that restricts sales by such subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict 
sales by that subcontractor to the United States in violation of the 
provision included in such contract pursuant to subsection (a) if the 
agreement does not result in the Federal Government being treated 
differently with regard to the restriction than any other prospective 
purchaser of such commercial items from that subcontractor.''.
    (b) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 304(a) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254(a)), as amended by 
section 4042(b), is further amended by inserting before the period at 
the end of the sentence added by section 4042(b) the following: ``or to 
a contract for the acquisition of commercial items''.

                   Subtitle C--Acquisitions Generally

SEC. 7021. CONFORMING AMENDMENT RELATING TO INAPPLICABILITY OF CERTAIN 
              PROVISIONS OF LAW.

    Section 5152 of the Drug-Free Workplace Act of 1988 (subtitle D of 
title V of Public Law 100-690; 41 U.S.C. 701 et seq.), as amended by 
section 4054, is further amended by inserting after the matter inserted 
by such section 4057 the following: ``, other than a contract for the 
procurement of commercial items (as defined, as applicable, in section 
315 of the Federal Property and Administrative Services Act of 1949 or 
section 2281 of title 10, United States Code),''.

SEC. 7022. FLEXIBLE DEADLINES FOR SUBMISSION OF OFFERS OF COMMERCIAL 
              ITEMS.

    Section 18(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 416(a)) is amended in paragraph (4) (as added by section 
4013(b))--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) The requirements of paragraph (3)(B) shall not apply to bids 
or proposals for contracts for the purchase of commercial items, as 
defined in section 4(12) of this Act. The Administrator shall 
promulgate regulations establishing appropriate time limits (but not 
less than 5 working days) for the submission of such bids or proposals 
in response to the notice required by paragraph (1)(A).''.

SEC. 7023. ADDITIONAL RESPONSIBILITIES FOR ADVOCATES FOR COMPETITION.

    Section 20(c) of the Office of Federal Procurement Policy Act (41 
U.S.C. 418(c)) is amended to read as follows:
    ``(c) The advocate for competition for each procuring activity 
shall be responsible for promoting full and open competition, promoting 
the acquisition of commercial items and other nondevelopmental items, 
and challenging barriers to such acquisition, including such barriers 
as unnecessarily restrictive statements of need, unnecessarily detailed 
specifications, and unnecessarily burdensome contract clauses.''.

SEC. 7024. PROVISIONS NOT AFFECTED.

    Nothing in this title shall be construed as modifying or 
superseding, or intending to impair or restrict authorities or 
responsibilities under, any of the following provisions of law:
            (1) Section 2323 of title 10, United States Code.
            (2) Section 8(a) of the Small Business Act (15 U.S.C. 
        637(a)).
            (3) Title IX of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 541 et seq.), popularly 
        referred to as the ``Brooks Architect-Engineers Act''.
            (4) Section 111 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 759), popularly referred to as 
        the ``Brooks Automatic Data Processing Act''.
            (5) The Act of June 25, 1938 (41 U.S.C. 46-48c), that was 
        revised and reenacted in the Act of June 23, 1971 (85 Stat. 
        77), popularly referred to as the ``Javits-Wagner-O'Day Act''.

SEC. 7025. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERNMENT USE OF 
              MARKET RESEARCH.

    (a) Report Required.--Not later than two years after the date of 
the enactment of this Act, the Comptroller General of the United States 
shall submit to the Congress a report on the use of market research by 
the Federal Government in support of the procurement of commercial 
items and nondevelopmental items.
    (b) Content of Report.--The report shall include the following:
            (1) A review of existing Federal Government market research 
        efforts to gather data concerning commercial and other 
        nondevelopmental items.
            (2) A review of the feasibility of creating a Government-
        wide data base for storing, retrieving, and analyzing market 
        data, including use of existing Federal Government resources.
            (3) Any recommendations for changes in law or regulations 
        that the Comptroller General considers appropriate.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 8001. EDUCATION AND TRAINING.

    Section 6(d)(5) of the Office of Federal Procurement Policy Act (41 
U.S.C. 405(d)(4)) is amended--
            (1) by striking out ``and'' at the end of subparagraph (A);
            (2) by striking out the semicolon at the end of 
        subparagraph (B) and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) establish policies and procedures for the 
                establishment and implementation of education and 
                training programs authorized by this Act, including the 
                establishment and implementation of training, in 
                conjunction with the General Services Administration, 
                for critical procurement personnel designed to increase 
                the participation of small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals, women, and other minorities in procurement 
                activities conducted by an executive agency.''.

SEC. 8002. DEPARTMENT OF DEFENSE ACQUISITION OF INTELLECTUAL PROPERTY 
              RIGHTS.

    Section 2386 of title 10, United States Code, is amended by 
striking out paragraphs (3) and (4) and inserting in lieu thereof the 
following:
            ``(3) Technical data and computer software.
            ``(4) Releases for past infringement of patents or 
        copyrights or for unauthorized use of technical data or 
        computer software.''.

SEC. 8003. COOPERATIVE PURCHASING.

    Section 201(b) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 481(b)) is amended to read as follows:
    ``(b)(1) The Administrator may provide any of the services 
specified in subsection (a) of this section to any other Federal agency 
or mixed ownership corporation (as defined in chapter 91 of title 31, 
United States Code).
    ``(2) The Administrator may provide for the utilization of Federal 
supply schedules or other schedule contracts by any of the following 
entities upon their request:
            ``(A) The various States and their political subdivisions, 
        including local governments, or any department or agency 
        thereof.
            ``(B) The District of Columbia and the Commonwealth of 
        Puerto Rico.
            ``(C) Indian tribal governments.
    ``(3) The authorization provided in this subsection shall not be 
construed to allow ordering of existing stock or inventory by the 
entities listed in paragraph (2) from federally owned and operated, or 
federally owned and contractor-operated, supply depots, warehouses, or 
similar facilities.''.

SEC. 8004. SENSE OF CONGRESS ON NEGOTIATED RULEMAKING.

    (a) Findings.--The Congress finds the following:
            (1) The use of negotiated rulemaking or similar policy 
        discussion group techniques is an appropriate tool for--
                    (A) fostering effective implementation of, and 
                compliance with, laws and regulations;
                    (B) avoiding litigation; and
                    (C) achieving more productive and equitable 
                relationships between the Federal Government and the 
                regulated segments of the private sector.
            (2) The use of negotiated rulemaking or similar techniques 
        in Federal procurement regulations could be appropriate given 
        the extreme complexity and intricate interactions between buyer 
        and seller in Federal procurements.
    (b) Sense of Congress.--It is the sense of Congress that, in 
prescribing acquisition regulations, the Federal Acquisition Regulatory 
Council should consider using negotiated rulemaking procedures in 
accordance with sections 561 through 570 of title 5, United States 
Code, or similar techniques intended to achieve the benefits described 
in subsection (a)(1).

SEC. 8005. EXTENSION OF DEFENSE ACQUISITION WORKFORCE POLICIES 
              GOVERNMENT-WIDE.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.) is amended by adding at the end the following new section:

``SEC. 30. MANAGEMENT POLICIES.

    ``(a) Requirement for Government-wide Workforce Policies.--The 
Administrator for Federal Procurement Policy shall extend Government-
wide the defense acquisition workforce policies contained in chapter 87 
of title 10, United States Code. In extending policies Government-wide, 
the Administrator may modify such policies as necessary to recognize 
differences between and among defense and nondefense departments and 
agencies.
    ``(b) Designation of Acquisition Positions.--After consultation 
with the heads of agencies, the Administrator shall establish policies 
and procedures for agency heads to designate acquisition positions and 
to manage employees serving in the designated acquisition positions. 
Such policies and procedures--
            ``(1) shall allow agency heads to designate specific 
        positions or categories of positions as acquisition positions; 
        and
            ``(2) shall address accession, education, training, and 
        career development of employees serving in acquisition 
        positions.
    ``(c) Small Agency Needs.--In carrying out this section, the 
Administrator shall take due consideration of the needs of small 
agencies in formulating and implementing policy and programs under this 
section to ensure that the benefits of such policy and programs accrue 
to small agencies.
    ``(d) Uniformity.--(1) Subject to paragraph (2), the Administrator 
shall ensure that, to the maximum extent practicable, the acquisition 
workforce policies and procedures developed pursuant to this section 
are uniform in their implementation throughout the executive agencies.
    ``(2) With respect to acquisition workforce policies and 
procedures, the Department of Defense shall be subject only to the 
requirements of chapter 87 of title 10, United States Code.
    ``(e) Federal Acquisition Institute.--Subject to the authority, 
direction and control of the Administrator, the Director of the Federal 
Acquisition Institute shall ensure that the policies established under 
this section are implemented throughout the Federal Government. The 
Administrator for General Services, with the concurrence of the 
Administrator for Federal Procurement Policy, may establish such 
additional positions in the Federal Acquisition Institute as may be 
necessary to carry out the preceding sentence.
    ``(f) Regulations.--The Administrator shall prescribe such 
regulations as may be necessary to carry out the purposes of this 
section.''.

SEC. 8006. VENDOR AND EMPLOYEE EXCELLENCE AWARDS.

    Section 6(d) of the Office of Federal Procurement Policy Act (41 
U.S.C. 405(d)) is amended--
            (1) by striking out the period at the end of paragraph (10) 
        (as redesignated by section 4011(b)(2)) and inserting in lieu 
        thereof a semicolon; and
            (2) by adding at the end the following new paragraphs:
            ``(11) providing for a Government-wide award to recognize 
        and promote vendor excellence; and
            ``(12) providing for a Government-wide award to recognize 
        and promote excellence in officers and employees of the Federal 
        Government serving in procurement-related positions.''.

SEC. 8007. DEPARTMENT OF DEFENSE REVIEW OF ANTITRUST CASES WITH 
              NATIONAL SECURITY IMPLICATIONS.

    (a) In General.--Subchapter II of chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2508. Antitrust cases with national security implications: 
              Secretary of Defense review
    ``(a) Review.--The Secretary of Defense shall conduct a review of 
any proposed acquisition of a business concern that is a critical 
United States defense supplier with respect to which the Attorney 
General or the Federal Trade Commission receives notice under the 
antitrust laws. In conducting such review, the Secretary shall assess 
the likely effect of the proposed acquisition (if carried out) on the 
policy objectives for the national technology and industrial base (as 
set forth in section 2501(a) of this title) and on such other 
considerations relating to national security as the Secretary considers 
appropriate.
    ``(b) Communication of Views of Secretary.--In any case in which 
the Secretary determines, as the result of a review and assessment 
under subsection (a), that a proposed acquisition is likely to have an 
appreciable effect (whether positive or negative) on the policy 
objectives for the national technology and industrial base or on other 
considerations relevant to national security (as determined by the 
Secretary), the Secretary shall immediately communicate that 
determination, in writing, to the Attorney General and the Federal 
Trade Commission. The Secretary shall include in such communication the 
Secretary's evaluation concerning the proposed acquisition.
    ``(c) Definition.--In this section, the term `critical United 
States defense supplier' means a company organized under the laws of 
the United States that is--
            ``(1) a contractor or critical subcontractor for a major 
        system, as defined in section 2302(9) of this title;
            ``(2) a contractor for a contract awarded to a particular 
        source pursuant to paragraph (3) of section 2304(c) of this 
        title for the reasons described in clause (A) of that 
        paragraph; or
            ``(3) in such other category as the Secretary of Defense 
        may prescribe by regulation as being critical to the national 
        technology and industrial base.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2508. Antitrust cases with national security implications: Secretary 
                            of Defense review.''.

SEC. 8008. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Table of Contents Amendments.--
            (1) Office of federal procurement policy act.--Section 1 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 401 
        note) is amended to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Office of Federal 
Procurement Policy Act'.
    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Declaration of policy.
``Sec. 3. Findings and purpose.
``Sec. 4. Definitions.
``Sec. 4A. Simplified acquisition threshold.
``Sec. 4B. Procedures applicable to purchases below micro-purchase 
                            threshold.
``Sec. 5. Office of Federal Procurement Policy.
``Sec. 6. Authority and functions of the Administrator.
``Sec. 7. Administrative powers.
``Sec. 8. Responsiveness to Congress.
``Sec. 9. Effect on existing laws.
``Sec. 10. Effect on existing regulations.
``Sec. 11. Authorization of appropriations.
``Sec. 12. Delegation.
``Sec. 14. Access to information.
``Sec. 15. Tests of innovative procurement methods and procedures.
``Sec. 16. Executive agency responsibilities.
``Sec. 18. Procurement notice.
``Sec. 19. Record requirements.
``Sec. 20. Advocates for competition.
``Sec. 21. Rights in technical data.
``Sec. 22. Publication of proposed regulations.
``Sec. 23. Contracting functions performed by Federal personnel.
``Sec. 24. Travel expenses of Government contractors.
``Sec. 25. Federal Acquisition Regulatory Council.
``Sec. 26. Cost Accounting Standards Board.
``Sec. 27. Procurement integrity.
``Sec. 28. Advocate for the Acquisition of Commercial Products.
``Sec. 29. Federal acquisition computer network (FACNET).
``Sec. 30. Management policies.''.
            (2) Federal property and administrative services act of 
        1949.--Section 1 of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 471 et seq.) is amended to read 
        as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Federal Property 
and Administrative Services Act of 1949'.
    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Declaration of policy.
``Sec. 3. Definitions.

                        ``TITLE I--ORGANIZATION

``Sec. 101. General Services Administration.
``Sec. 102. Transfer of affairs of Bureau of Federal Supply.
``Sec. 103. Transfer of affairs of the Federal Works Agency.
``Sec. 104. Records management: Transfer of the National Archives.
``Sec. 106. Redistribution of functions.
``Sec. 107. Transfer of funds.
``Sec. 109. General supply fund.
``Sec. 110. Information Technology Fund.
``Sec. 111. Automatic data processing equipment.
``Sec. 112. Federal information centers.

                    ``TITLE II--PROPERTY MANAGEMENT

``Sec. 201. Procurement, warehousing, and related activities.
``Sec. 202. Property utilization.
``Sec. 203. Disposal of surplus property.
``Sec. 204. Proceeds from transfer or disposition of property.
``Sec. 205. Policies, regulations, and delegations.
``Sec. 206. Surveys, standardization, and cataloging.
``Sec. 207. Applicability of antitrust laws.
``Sec. 208. Employment of personnel.
``Sec. 209. Civil remedies and penalties.
``Sec. 210. Operation of buildings and related activities.
``Sec. 211. Motor vehicle identification and operation.
``Sec. 212. Reports to Congress.

                   ``TITLE III--PROCUREMENT PROCEDURE

``Sec. 301. Declaration of purpose.
``Sec. 302. Application and procurement methods.
``Sec. 302A. Simplified acquisition threshold.
``Sec. 302B. Implementation of FACNET capability.
``Sec. 303. Competition requirements.
``Sec. 303A. Planning and solicitation requirements.
``Sec. 303B. Evaluation and award.
``Sec. 303C. Encouragement of new competition.
``Sec. 303D. Validation of proprietary data restrictions.
``Sec. 303F. Economic order quantities.
``Sec. 303G. Prohibition of contractors limiting subcontractor sales 
                            directly to the United States.
``Sec. 304. Contract requirements.
``Sec. 304A. Multiyear contracts.
``Sec. 304B. Cost or pricing data: truth in negotiations.
``Sec. 304C. Examination of records of contractor.
``Sec. 305. Contract financing.
``Sec. 306. Allowable costs.
``Sec. 307. Administrative determinations and delegations.
``Sec. 309. Definitions.
``Sec. 310. Statutes not applicable.
``Sec. 311. Cooperative agreements for basic, applied, and advanced 
                            research.
``Sec. 312. Assignment and delegation of procurement functions and 
                            responsibilities.
``Sec. 313. Determinations and decisions.
``Sec. 314. Undefinitized contractual actions: restrictions.
``Sec. 315. Definitions relating to procurement of commercial items.
``Sec. 315A. Preference for acquisition of commercial items and other 
                            nondevelopmental items.
``Sec. 315B. Pricing documentation for commercial items.
``Sec. 315C. Regulations on acquisition of commercial items.
``Sec. 315D. Principle of construction with future laws.
``Sec. 315E. Inapplicability of certain provisions of law.

                  ``TITLE IV--FOREIGN EXCESS PROPERTY

``Sec. 401. Disposal of foreign excess property.
``Sec. 402. Methods and terms of disposal.
``Sec. 403. Proceeds; foreign currencies.
``Sec. 404. Miscellaneous provisions.

                     ``TITLE VI--GENERAL PROVISIONS

``Sec. 601. Applicability of existing procedures.
``Sec. 602. Repeal and saving provisions.
``Sec. 603. Authorization for appropriations and transfer of authority.
``Sec. 604. Separability.
``Sec. 605. Effective date.

                  ``TITLE VIII--URBAN LAND UTILIZATION

``Sec. 801. Short title.
``Sec. 802. Declaration of purpose and policy.
``Sec. 803. Disposal of urban lands.
``Sec. 804. Acquisition or change of use of real property.
``Sec. 805. Waiver during national emergency.
``Sec. 806. Definitions.

           ``TITLE IX--SELECTION OF ARCHITECTS AND ENGINEERS

``Sec. 901. Definitions.
``Sec. 902. Policy.
``Sec. 903. Requests for data on architectural and engineering 
                            services.
``Sec. 904. Negotiation of contracts for architectural and engineering 
                            services.''.
    (b) Amendments for Stylistic Consistency.--
            (1) Office of federal procurement policy act.--The Office 
        of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
        amended so that the section designation and section heading of 
        each section of such Act is in the same form and typeface as 
        the section designation and heading of this section.
            (2) Federal property and administrative services act of 
        1949.--The Federal Property and Administrative Services Act of 
        1949 (41 U.S.C. 471 et seq.) is amended so that the section 
        designation and section heading of each section of such Act is 
        in the same form and typeface as the section designation and 
        heading of this section.
    (c) Repeals of Executed Provisions.--The Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.) is amended--
    (1) by striking out section 13; and
    (2) by striking out the first section 15.
    (d) Cross Reference Corrections.--Section 3552 of title 31, United 
States Code, is amended--
            (1) by striking out ``section 111(h)'' and inserting in 
        lieu thereof ``section 111(f)''; and
            (2) by striking out ``759(h)'' and inserting in lieu 
        thereof ``759(f)''.
    (e) Consistency of Terminology With Customary Usage.--Section 
304(b) of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 254(b)) is amended by striking out ``per centum'' each place 
it appears and inserting in lieu thereof ``percent''.

               TITLE IX--EFFECTIVE DATES AND REGULATIONS

SEC. 9001. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act shall apply with respect to any 
contract for which a solicitation for bid or proposal is issued after--
            (1) 30 days have expired after the issuance in final form 
        of revisions to the Federal Acquisition Regulation pursuant to 
        section 10002; or
            (2) 180 days have expired after the date of the enactment 
        of this Act;
whichever is earlier.
    (b) Specific Effective Dates.--(1) Titles III and VI of this Act, 
and the amendments made by such titles, shall take effect on the date 
of the enactment of this Act.
    (2) Subtitle D of title I of this Act, and the amendments made by 
such subtitle (relating to procurement protests), shall apply with 
respect to any protest filed after the expiration of the 90-day period 
beginning on the date of the enactment of this Act.

SEC. 9002. REGULATIONS.

    Not later than 150 days after the date of the enactment of this 
Act, the Federal Acquisition Regulation (referred to in section 25(c) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c))) 
shall be revised, in final form, to implement this Act and the 
amendments made by this Act.
            Amend the title so as to read: ``A bill to amend title 10, 
        United States Code, the Federal Property and Administrative 
        Services Act of 1949, and the Office of Federal Procurement 
        Policy Act to improve the Federal acquisition process, and for 
        other purposes.''.
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                                                 Union Calendar No. 303

103d CONGRESS

  2d Session

                               H. R. 2238

                  [Report No. 103-545, Parts I and II]

_______________________________________________________________________

                                 A BILL

 To amend laws relating to Federal procurement, to authorize functions 
 and activities under the Federal Property and Administrative Services 
                  Act of 1949, and for other purposes.

_______________________________________________________________________

                             June 17, 1994

    Reported from the Committee on Armed Services with amendments, 
   committed to the Committee of the Whole House on the State of the 
                    Union, and ordered to be printed