[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1388 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1388

     To revise and streamline the acquisition laws of the Federal 
                  Government, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 1995

Mr. Clinger (for himself, Mrs. Collins of Illinois, Mr. Spence, and Mr. 
  Dellums) (all by request) introduced the following bill; which was 
 referred to the Committee on Government Reform and Oversight, and in 
 addition to the Committees on National Security, the Judiciary, Small 
  Business, Science, and International Relations, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
     To revise and streamline the acquisition laws of the Federal 
                  Government, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Acquisition Improvement Act 
of 1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  subpart a--competition requirements
Sec. 1001. Delegation of authorities and conforming amendments.
Sec. 1002. Modification of approval levels.
Sec. 100subpart b--planning, solicitation, evaluation, and award
Sec. 1011. Evolving solicitations.
Sec. 1012. Competitive range determinations.
Sec. 1013. Preaward debriefings.
Sec. 1014. Two-phase subpart c--kinds of contracts
Sec. 1021. Repeal of fee limitations.
                 Psubpart a--competition requirementss.
Sec. 1051. Delegation of authorities and conforming amendments.
Sec. 1052. Modification of approval levels.
Sec. 1053. Advisory and assistance services defined.
Sec. 105subpart b--planning, solicitation, evaluation, and award
Sec. 1061. Evolving solications.
Sec. 1062. Competitive range determinations.
Sec. 1063. Preaward debriefings.
Sec. 1064. Two-phase subpart c--kinds of contracts
Sec. 1071. Repeal of fee limitiations.
                    Part III--Acquisitions Generally

Sec. 1091. Repeal of duplicative approval authority provision.
Sec. 1092. Repeal of annual competition report.
Sec. 1093. Review of regulators for consistency with Federal 
                            acquisition regulation.
Sec. 1094. Repeal biannual report on procurement regulatory activity.
                   Subtitle B--Truth In Negotiations

                  Part I--Armed Services Acquisitions

Sec. 1101. Required regulations.
                 Part II--Civilian Agency Acquisitions

Sec. 1151. Required regulations.
Sec. 1152. Clarification of status of certain Federal employees health 
                            benefits contracts.
                    Subtitle C--Procurement Protests

              Part I--Protests to the Comptroller General

Sec. 1201. GAO requirement to rule on dispositive motions.
Sec. 1202. Frivolous protests.
Sec. 1203. Decisions on protests.
Sec. 1204. Award of costs.
Sec. 1205. Availability of funds pending administrative procedure.
                Part II--Protests in the Federal Courts

Sec. 1211. Jurisdiction of the United States Court of Federal Claims.
    Part III--Protests in Procurements of Automatic Data Processing

Sec. 1431. Decisions on protests.
Sec. 1432. Interlocutory appeals.
Sec. 1433. Suspension of procurement pending protest.
Sec. 1434. Dispositive motions.
Sec. 1435. Frivolous protests.
Sec. 1436. Award of costs.
                            Part IV--General

Sec. 1441. Protests of procurements made through the Federal 
                            acquisition computer network under the 
                            simplified acquisition threshold.
Sec. 1442. Offeror statements to refrain from protesting procurements.
Sec. 1443. Sense of Congress on agency resolution of protests.
           Subtitle D--Policy, Definitions, and Other Matters

Sec. 1551. Repeal of multi-year limitation on inspection, maintenance, 
                            and repair.
Sec. 1552. Public utilities services.
Sec. 1553. Contracting for guards, elevator operators, messengers, and 
                            custodians.
                   TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                  Part I--Armed Services Acquisitions

Sec. 2001. Vestiture of title.
                 Part II--Civilian Agency Acquisitions

Sec. 2051. Vestiture of title.
                      Subtitle B--Cost Principles

                  Part I--Civilian Agency Acquisitions

Sec. 2101. Applicability of cost principles.
                    Part II--Acquisitions Generally

Sec. 2151. Allowable contract costs.
                    Subtitle C--Claims and Disputes

Sec. 2251. Divestiture of District Courts of dispute jurisdiction.
Sec. 2252. Contract Disputes Act improvement.
                       Subtitle D--Miscellaneous

Sec. 2301. Accounting for advisory and assistance services.
Sec. 2302. Waivers from cancellation of funds.
                      TITLE III--COMMERCIAL ITEMS

Sec. 3001. Commercial items.
               TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD

                     Subtitle A--Threshold Defined

Sec. 4001. Simplified acquisition threshold defined.
  Subtitle B--Inapplicability of Laws to Acquisitions At or Below the 
                    Simplified Acquisition Threshold

Sec. 4101. Miller Act.
                   Subtitle C--Simplified Procedures

Sec. 4201. Repeal of duplicative authority for simplified acquisition 
                            purchases.
Sec. 4202. Amendment to conform procurement notice posting thresholds.
Sec. 4203. Exemption from wait period when using detailed synopsis.
Sec. 4204. Exemption from synopsizing requirements.
Sec. 4205. Repeal of duplicative procurement notice provision.
Sec. 4206. Technical amendments.
                 Subtitle D--Micro-Purchase Procedures

Sec. 4301. Micro-purchases.
                    TITLE V--ACQUISITION MANAGEMENT

                       Subtitle A--Pilot Programs

Sec. 5001. Acquisition research demonstration projects.
                       Subtitle B--Miscellaneous

Sec. 5051. Administrative procedures, Department of Energy.
              TITLE VI--OTHER PROCUREMENT-RELATED MATTERS

                Subtitle A--Standards of Conduct/Ethics

Sec. 6001. Disclosing and obtaining contractor bid or proposal 
                            information or source selection 
                            information.
Sec. 6002. Repeals.
Sec. 6003. Conforming amendments.
                   Subtitle B--Additional Amendments

Sec. 6051. Inapplicability of prohibition on gratuities.
                   Subtitle C--Intellectual Property

Sec. 6101. Technology innovation.
Sec. 6102. Employee activities.
Sec. 6103. Exception to prohibition on copyright protection for works 
                            of the United States Government.
Sec. 6104. Patent rights in inventions made with Federal assistance.
            TITLE VII--SMALL BUSINESS AND SOCIOECONOMIC LAWS

                    Subtitle A--Small Business Laws

Sec. 7001. Direct contracting with section 8(a) companies.
Sec. 7002. Small business subcontracting plans.
Sec. 7003. Reporting requirement on number of small business 
                            subcontract awards.
Sec. 7004. Repeal of small business competitiveness demonstration 
                            program.
Sec. 7005. Repeal of program for manufacturing contracts through 
                            manufacturing application and education 
                            centers.
Sec. 7006. Repeal of pilot program for very small business concerns.
                     Subtitle B--Socioeconomic Laws

Sec. 7101. Repeal of Walsh-Healey Public Contracts Act.
Sec. 7102. Procurement report--Resource Conservation and Recovery Act.
Sec. 7103. Requirements for certification and verification.
                TITLE VIII--DEFENSE INTERNATIONAL TRADE

Sec. 8001. Competitiveness of United States companies.

                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  PART I--ARMED SERVICES ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1001. DELEGATION OF AUTHORITIES AND CONFORMING AMENDMENTS.

    (a) Competition Requirements.--Section 2304 of title 10, United 
States Code, is amended--
            (1) in subsection (b) by striking ``the head of an agency'' 
        in each place that it appears and inserting in lieu thereof 
        ``the head of the contracting activity'';
            (2) in subsection (c) by striking out ``the head of an 
        agency'' in the first sentence and inserting in lieu thereof 
        ``an executive agency'';
            (3) in subsection (c)(7) by striking out ``head of the 
        agency'' and inserting in lieu thereof ``head of the 
        contracting activity''; and
            (4) in subsection (d)(2) by striking out ``head of an 
        agency'' and inserting in lieu therefor ``head of the 
        contracting activity''.
    (b) Formation Procedures.--Section 2305 of title 10, United States 
Code, is amended by striking out ``the head of an agency'' or ``the 
head of the agency'' in each place that it appears and inserting in 
lieu thereof ``the contracting officer''.
    (c) Kinds of Contracts.--Subsection (a) of section 2306 of title 
10, United States Code, is amended to read as follows:
    ``(a) The cost-plus percentage-of-cost system of contracting may 
not be used. Subject to the limitation in the preceding sentence, the 
other provisions of this section, and other applicable provisions of 
law, an agency, in awarding contracts under this chapter after using 
procedures other than sealed-bid procedures, may enter into any kind of 
contract that the agency considers will promote the best interests of 
the United States.''.
    (d) Cost or Pricing Data.--Section 2306a of title 10, United States 
Code, is amended--
            (1) in subsection (b)(1)(B) by striking out ``when the head 
        of the procuring activity, without delegation,'' and inserting 
        in lieu thereof ``when the contracting officer''; and
            (2) in subsection (g) by striking the words ``the head 
        of''.
    (e) Encouragement of New Competitors.--Section 2319 of title 10, 
United States Code is amended--
            (1) by striking out ``the head of an agency'' or ``the head 
        of the agency'' in each place that it appears and inserting the 
        lieu thereof ``the contracting officer'';
            (2) by striking out subparagraph (A) of subsection (c)(2) 
        and inserting in lieu thereof the following:
                    ``(A) Except as provided in subparagraph (B), if it 
                is unreasonable to specify the standards for 
                qualification which a prospective offeror or its 
                product must satisfy, a determination to that effect 
                shall be submitted to the head of the contracting 
                activity. After considering the determination and the 
                facts supporting it, the head of the contracting 
                activity may waive the requirements of clauses (2) 
                through (6) of subsection (b) for up to two years with 
                respect to the item subject to the qualification 
                requirement.''; and
            (3) by adding a new subsection (g) to read as follows:
    ``(g) The contracting officer need not prepare the justification 
required by subsection (b)(1) nor the determination required by 
subsection (f) if, in the prior fiscal year, the agency either 
obligated 75 percent or more of its contract dollars available for 
competition or awarded 95 percent or more of its contract actions 
available for competition using competitive procedures.''.

SEC. 1002. MODIFICATION OF APPROVAL LEVELS.

    (a) Approval of Justifications.--Section 2304(f)(1)(B) of title 10, 
United States Code is amended to read as follows:
    ``(f)(1)(B) the justification is approved--
            ``(i) in the case of a contract for an amount exceeding 
        $500,000 (but equal to or less and $5,000,000) by the 
        competition advocate for the procuring activity (without 
        further delegation) or by an official referred to in (ii), 
        (iii), or (iv);
            ``(ii) in the case of a contract for an amount exceeding 
        $5,000,000 (but equal to or less than $115,000,000), by the 
        head of the procuring activity (or the head of the procuring 
        activity's delegate designated pursuant to paragraph (6)(A));
            ``(iii) in the case of a contract for amount exceeding 
        $115,000,000 (but equal to or less than $500,000,000), by the 
        senior procuring executive of the agency designated pursuant to 
        section 16(3) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 414(3)) or the senior procurement executive's 
        delegate designated pursuant to paragraph (6)(B), or in the 
        case of the Under Secretary of Defense for Acquisition, acting 
        in his capacity as the senior procurement executive for the 
        Department of Defense; the Under Secretary's delegate 
        designated pursuant to paragraph (6)(C);
            ``(iv) in the case of a contract for amount exceeding 
        $500,000,000, by the senior procuring executive of the agency 
        designated pursuant to section 16(3) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 414(3)) (without further 
        delegation) or in the case of the Under Secretary of Defense 
        for Acquisition, acting in his capacity as the senior 
        procurement executive for the Department of Defense, the Under 
        Secretary's delegate designated pursuant to paragraph (6)(C); 
        and''.
    (b) Exception.--Section 2304(f)(1) of title 10, United States Code, 
is further amended by adding at the end the following:
            ``(D) The justification required by paragraph (1)(A) is not 
        required to be approved as under paragraph (1)(B) if the agency 
        obligated 75 percent or more of its contract dollars available 
        for competition or awarded 95 percent or more of its contract 
        actions available for competition during the previous fiscal 
        year using competitive procedures.''.

SEC. 1003. ADVISORY AND ASSISTANCE SERVICES DEFINED.

    (a) Definition.--Section 2304b(i) of title 10, United States Code, 
is amended to read as follows:
    ``(i) Advisory and Assistance Services Defined.
    ``In this section:
            ``(1) the term ``advisory and assistance services'' means 
        the following services when provided by nongovernmental 
        sources:
                    ``(A) Management and professional support services.
                    ``(B) Studies, analysis, and evaluations.
                    ``(C) Engineering and technical services.
            ``(2) In paragraph (1), such term does not include the 
        following services:
                    ``(A) Routine automated data processing 
                telecommunications services unless such services are an 
                integral part of a contract for the procurement of 
                advisory and assistance services.
                    ``(B) Architectural and engineering services, as 
                defined in section 901 of the Brooks Architect-
                Engineers Act (40 U.S.C. 541).
                    ``(C) Research on basic mathematics or medical, 
                biological, physical, social, psychological, or other 
                phenomena.''.
    (b) Technical Amendment.--Section 2304a(f) of title 10 is amended 
by striking ``section 1105(g) of title 31'' and inserting in lieu 
thereof ``section 2304b(i) of title 10''.

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

SEC. 1011. EVOLVING SOLICITATIONS.

    Subsection (a) of section 2305 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 
        paragraph (5):
            ``(5) When purchasing commercial items under this subpart, 
        nothing in this or any other Act shall be construed to prohibit 
        an agency from adding, deleting, or tailoring evaluation 
        factors or specifications at any time up until the issuance of 
        a request for final offers.''.

SEC. 1012. COMPETITIVE RANGE DETERMINATIONS.

    Paragraph (4) of section 2305(b) of title 10, United States Code, 
is amended by--
            (1) redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D) respectively;
            (2) striking out ``(B)'' in subparagraph (D) and inserting 
        in lieu thereof ``(C)''; and
            (3) inserting after subparagraph (A) the following:
                    ``(B) If the contracting officer determines that 
                the number of offerors that would otherwise be included 
                in the competitive range under subparagraph (A)(i) 
                exceeds the number at which an efficient competition 
                can be conducted, the contracting officer may limit the 
                number of offerors in the competitive range to the 
                greatest number of competitors that will permit an 
                efficient award; provided that when the competition is 
                limited for this purpose, the number of offerors may 
                not be limited to less than three.''.

SEC. 1013. PREAWARD DEBRIEFINGS.

    Section 2305(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (6) as paragraph (7); and
            (2) inserting after paragraph (5) the following new 
        paragraph (6):
            ``(6)(A) When the contracting officer excludes an offeror 
        submitting a competitive proposal from the competitive range 
        (or otherwise excludes such an offeror from further 
        consideration prior to the final source selection decision), 
        the excluded offeror may request in writing, within 3 days 
        after the date on which the excluded offeror receives notice of 
        its exclusion, a debriefing prior to award. The contracting 
        officer shall either debrief the unsuccessful offeror as soon 
        as is practicable or refuse the request.
            ``(B) The contracting officer is required to debrief an 
        excluded offeror in accordance with paragraph (5) of this 
        section only if that offeror requested and was refused a 
        preaward debriefing under subparagraph (A) of this paragraph.
            ``(C) The debriefing conducted under this subsection shall 
        include--
                    ``(i) the executive agency's evaluation of the 
                significant factors in the offeror's offer;
                    ``(ii) a summary of the rationale for the offeror's 
                exclusion, including the reason or reasons it was 
                determined not to have a reasonable chance of being 
                selected for contract award or other reason or reasons 
                it was excluded; and
                    ``(iii) reasonable responses to relevant 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.
            ``(D) The debriefing conducted pursuant to this subsection 
        may not disclose the number or identity of other offerors and 
        shall not disclose information about the content, ranking, or 
        evaluation of other offerors' proposals.
            ``(E) The contracting officer shall include a summary of 
        the debriefing in the contract file.''.

SEC. 1014. TWO-PHASE SELECTION PROCEDURES.

    (a) Procedures Authorized.--Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2305 the following new 
section:
``Sec. 12305a. Two-phase selection procedures
    ``(a) Authorization.--The contracting officer may use the two-phase 
selection procedures authorized herein for acquiring the design and 
construction of a public building, facility, or work when the criteria 
for use in subsection (b) are met. The two-phase selection procedures 
authorized herein may also be used for entering into a contract for the 
acquisition of property or services other than construction services 
when the criteria described in subsection (b) are met.
    ``(b) Criteria for Use.--The contracting officer shall make a 
determination whether the authorized two-phase selection procedures are 
appropriate for use when the contracting officer anticipates that three 
or more offers will be received for such contract, design work must be 
performed before an offeror can develop a price or cost proposal for 
such contract, the offeror will incur a substantial amount of expense 
in preparing the offer, and after considering in individual situations 
information such as the following:
            ``(1) The extent to which the project requirements have 
        been adequately defined.
            ``(2) The time constraints for delivery of the project.
            ``(3) The capability and experience of potential 
        contractors.
            ``(4) The suitability of the project for use of the two-
        phase selection procedures.
            ``(5) The capability of the agency to manage the two-phase 
        selection process.
            ``(6) Other criteria established by the agency.
    ``(c) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The agency shall develop, either in-house or by 
        contract, a scope of work defining the project for inclusion in 
        the solicitation that provides prospective offerors with 
        sufficient information regarding the Government's requirements 
        which may include criteria and preliminary conceptual design, 
        budget parameters and schedule or delivery requirements to 
        enable the offerors to submit proposals which meet the 
        Government's needs. When the two-phase selection procedure is 
        used for design and construction of a public building, 
        facility, or work and the agency contracts for development of 
        the scope of work, the agency shall contract for architectural/
        engineering services as defined by and in accordance with 
        section 541 and the following of title 40, United States Code.
            ``(2) The contracting officer solicits phase-one proposals 
        that--
                    ``(A) include information on the offeror's--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; or
                            ``(ii) cost or price information.
            ``(3) The evaluation factors to be used in evaluating phase 
        one proposals shall be stated in the solicitation and include 
        specialized experience and technical competence, capability to 
        perform, past performance of the offeror's team (including the 
        architect-engineer and construction members of the team if the 
        project is for the construction of a public building, facility 
        or work) and other appropriate factors, except that cost-
        related or price-related evaluation factors are not permitted. 
        Each solicitation shall establish the relative importance 
        assigned to the evaluation factors and subfactors that must be 
        considered in the evaluation of phase one proposals. The agency 
        evaluates phase one proposals on the basis of the phase one 
        evaluation factors set forth in the solicitation.
            ``(4) The contracting officer selects as the most highly 
        qualified the number of offerors specified in the solicitation 
        to provide the property or services under the contract and 
        requests the selected offerors to submit phase-two competitive 
        proposals that include technical proposals and cost or price 
        information. Each solicitation shall establish with respect to 
        phase two--
                    ``(A) the technical submission requirements for the 
                proposal, including design concepts and/or proposed 
                solutions to requirements addressed within the scope of 
                work, and
                    ``(B) the evaluation factors and subfactors, 
                including cost or price, that must be considered in the 
                evaluation of proposals in accordance with section 
                2305(b)(4).
            ``(5) The agency awards the contract in accordance with 
        section 2305(b)(4) of this title.
    ``(d) Solicitation To State Number of Offerors To Be Selected for 
Phase Two Requests for Competitive Proposals.--A solicitation issued 
pursuant to subsection (c) shall state the maximum number of offerors 
that are to be selected to submit competitive proposals pursuant to 
subsection (c)(4). The maximum number specified in the solicitation 
shall not exceed five unless the agency head determines with respect to 
an individual solicitation that a specified number greater than five is 
in the Government's interest and is consistent with the purposes and 
objectives of the two-phase selection process.
    ``(e) Stipends Authorized.--The head of an executive agency is 
authorized to provide a stipend to competitors that are selected to 
submit phase two proposals and that submit proposals that meet the 
requirements of the solicitation but are not selected for the award.
    ``(f) Requirement for Guidance and Regulations.--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--
            ``(1) regarding the factors that may be considered in 
        determining whether the two-phase contracting procedures 
        authorized by subsection (a) are appropriate for use in 
        individual contracting situations;
            ``(2) regarding the factors that may be used in selecting 
        contractors;
            ``(3) providing for a uniform approach to be used 
        government-wide; and
            ``(4) regarding criteria to be used in determining whether 
        the payment of a stipend is appropriate and for determining the 
        amount of the stipend.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2305 the following:

``Sec. 2305a. Two-phase selection procedures.''.

                     Subpart C--Kinds of Contracts

SEC. 1021. REPEAL OF FEE LIMITATIONS.

    (a) Repeals.--(1) Subsection (d) of section 2306 of title 10, 
United States Code, is repealed.
    (2) Sections 4540, 7212, and 9540 of title 10, United States Code, 
are repealed.
    ``(b) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 433 of title 10, United States Code, is amended by 
striking out the item relating to section 4540.
    (2) The table of sections at the beginning of chapter 631 of title 
10, United States Code, is amended by striking out the item relating to 
section 7212.
    (3) The table of sections at the beginning of chapter 933 of title 
10, United States Code, is amended by striking out the item relating to 
section 9540.
    (c) Civil Works Authority.--Section 2855 of title 10, United States 
Code, is amended to read as follows:
``Sec. 2855 Law applicable to contracts for architectural and 
              engineering services and construction design
    ``(a) The Secretary of Defense and Secretaries of the military 
departments may contract for architectural and engineering services in 
connection with a military construction or family housing project or 
for other Department of Defense or military department purposes.
    ``(b) Contracts for architectural and engineering services entered 
into pursuant to subsection (a) shall be awarded in accordance with 
title IX of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 541 et seq.).''.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1051. DELEGATION OF AUTHORITIES AND CONFORMING AMENDMENTS.

    (a) Competition Requirements.--Section 303 of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253) is amended--
            (1) in section (b)(1) by striking ``the agency head'' and 
        inserting in lieu thereof ``the head of the contracting 
        activity'';
            (2) in section (c)(7) by striking ``head of the executive 
        agency'' and inserting in lieu thereof ``head of the 
        contracting activity''; and
            (3) in section (d)(2) by striking ``head of an executive 
        agency'' and inserting in lieu thereof ``head of the 
        contracting activity''.
    (b) Evaluation and Award.--Section 303B of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended by 
striking out ``the head of an executive agency'', ``the head of an 
agency'' or ``the agency head'' in each place that it appears and 
inserting in lieu thereof ``the contracting officer''.
    (c) Encouragement of New Competition.--Section 303C of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253c) is 
amended--
            (1) by striking out ``the head of an executive agency'', 
        ``agency head'', in each place that it appears and inserting 
        ```contracting officer'' in lieu thereof and also striking out 
        ``the head of an agency'' or ``the head of the agency'' in each 
        place that it appears and inserting in lieu thereof ``the 
        contracting officer'';
            (2) by striking out paragraph (2) in subsection (c) and 
        inserting in lieu thereof the following:
            ``(2) Except as provided in subparagraph (3), if it is 
        unreasonable to specify the standards for qualification which a 
        prospective offeror or its product must satisfy, a 
        determination to that effect shall be submitted to the head of 
        the contracting activity. After considering the determination 
        and the facts supporting it, the head of the contracting 
        activity may waiver the requirements of clauses (2) through (5) 
        of subsection (b) for up to two years with respect to the item 
        subject to the qualification requirement.''; and
            (3) by adding a new paragraph (g) to read as follows:
    ``(g) The contracting officer need not prepare the justification 
required by subsection (b)(1) nor the determination required by 
subsection (f) if, in the prior fiscal year, the agency either 
obligated 75 percent of more of its contract dollars available for 
competition or awarded 95 percent or more of its contract actions 
available for competition using competitive procedures.''.
    (d) Cost or Pricing Data.--Section 304A(b)(1)(B) of the Federal 
Property and Administrative Services Act of 1949 is amended by striking 
out ``when the head of the procuring activity, without delegation,'' 
and inserting in lieu thereof ``when the contracting officer''.
    ``(e) Price Reductions.--Subsection 304A(e)(1)(A) of the Federal 
Property and Administrative Services Act of 1949 is amended by striking 
out ``head of the executive agency'' and in lieu thereof inserting 
``contracting officer''.

SEC. 1052. MODIFICATION OF APPROVAL LEVELS.

    Section 303(f) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253) is amended--
            (1) in paragraph (1)(B)(i) by deleting ``$100,000 (but 
        equal to or less than $1,000,000)'' and inserting in lieu 
        thereof ``$500,000 (but equal to or less than $10,000,000)'';
            (2) in paragraph (1)(B)(ii) by deleting ``$1,000,000 (but 
        equal to or less than $10,000,000) and inserting in lieu 
        thereof ``$10,000,000 (but equal to or less than 
        $50,000,000)'';
            (3) in paragraph (1)(B)(iii) by deleting ``$10,000,000'' 
        and inserting in lieu thereof ``$50,000,000''; and
            (4) by adding at the end a new paragraph (6) to read as 
        follows:
            ``(6) The justification required by paragraph (1)(A) is not 
        required to be approved under paragraph (1)(B) if the agency 
        obligated 75 percent or more of its contract dollars available 
        for competition or awarded 95 percent or more of its contract 
        actions available for competition during the previous fiscal 
        year using competitive procedures.''.

SEC. 1053. ADVISORY AND ASSISTANCE SERVICES DEFINED.

    (a) Definition.--Subsection (i) of section 303I(i) of the Federal 
Property and Administrative Services Act of 1949 is amended to read as 
follows:
    ``(i) Advisory and Assistance Services Defined.--In this section--
            ``(1) the term `advisory and assistance services' means the 
        following services when provided by nongovernmental sources:
                    ``(A) Management and professional support services.
                    ``(B) Studies, analysis, and evaluations.
                    ``(C) Engineering and technical services.
            ``(2) In paragraph (1), such term does not include the 
        following services:
                    ``(A) Routine automated data processing 
                telecommunications services unless such services are an 
                integral part of a contract for the procurement of 
                advisory and assistance services.
                    ``(B) Architectural and engineering services, as 
                defined in section 901 of the Brooks Architect-
                Engineers Act (40 U.S.C. 541).
                    ``(C) Research on basic mathematics or medical, 
                biological, physical, social, psychological, or other 
                phenomena.''.
    (b) Technical Amendment.--Section 303H(f) of title 41 is amended by 
striking ``section 1105(g) of title 31'' and inserting in lieu thereof 
``section 303I(i) of title 41''.

SEC. 1054. CONTINUED OCCUPANCY OF LEASED SPACE.

    Section 303(d) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(d)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2)(A) For the purposes of applying subsection (c)(1) in 
        the case of a follow-on lease to be entered into for the 
        purpose of providing for continued occupancy of particular 
        space in leased real property by a Federal agency, space may be 
        treated as being available from only the lessor of such space 
        and may be acquired through the use of other than competitive 
        procedures (without the justification otherwise required by 
        subsection (f)) if a written determination is made by the 
        contracting officer that--
                    ``(i) the occupying agency has a continuing need 
                for the space;
                    ``(ii) the space meets the needs of the agency; and
                    ``(iii) the lessor is willing to continue to 
                provide the space at a fair market price determined by 
                the contracting officer on the basis of a market survey 
                or an appraisal conducted in accordance with generally 
                accepted real property appraisal standards.
            ``(B) The authority under subparagraph (A) to use 
        procedures other than competitive procedures to enter into a 
        follow-on lease may be exercised not more than once to provide 
        for continued occupancy of particular space in real property by 
        a particular Federal agency. The period of such follow-on lease 
        may not exceed 5 years provided, however, the total lease 
        period of the base lease and follow-on lease shall not exceed 
        20 years.
            ``(C) Nothing in this paragraph may be construed to 
        prohibit the use of procedures other than competitive 
        procedures to enter into a follow-on lease of real property for 
        continued occupancy of particular space in real property by a 
        Federal agency when an exception set forth in subsection (c) 
        applies and the use of such procedures is justified and 
        approved in accordance with subsection (f).''.

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

SEC. 1061. EVOLVING SOLICITATIONS.

    Section 303A of the Federal Property and Admin- istrative Services 
Act of 1949 (41 U.S.C. 253a) is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) When purchasing commercial items under this subpart, nothing 
in this or any other Act shall be construed to prohibit an agency from 
adding, deleting, or tailoring evaluation factors or specifications at 
any time up until the issuance of a request for final offers.''.

SEC. 1062. COMPETITIVE RANGE DETERMINATIONS.

    Subsection (d) of section 303B of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b), is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after subparagraph (1) the following:
            ``(2) If the contracting officer determines that the number 
        of offerors that would otherwise be included in the competitive 
        range under subparagraph (1)(A) exceeds the number at which an 
        efficient competition can be conducted, the contracting officer 
        may limit the number of offerors in the competitive range to 
        the greatest number of competitors that will permit an 
        efficient award; provided that when the competition is limited 
        for this purpose, the number of offerors may not be limited to 
        less than three.''.

SEC. 1063. PREAWARD DEBRIEFINGS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b) is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f)(1) When the contracting officer excludes an offeror 
submitting a competitive proposal from the competitive range (or 
otherwise excludes such an offeror from further consideration prior to 
the final source selection decision), the excluded offeror may request 
in writing, within 3 days after the date on which the excluded offeror 
receives notice of its exclusion, a debriefing prior to award. The 
contracting officer shall either debrief the unsuccessful offeror as 
soon as is practicable or refuse the request.
    ``(2) The contracting officer is required to debrief an excluded 
offeror in accordance with subsection (e) of this section only if that 
offeror requested and was refused a preaward debriefing under paragraph 
(1) of this subsection.
    ``(3) The debriefing conducted under this subsection shall 
include--
            ``(A) the executive agency's evaluation of the significant 
        factors in the offeror's offer;
            ``(B) a summary of the rationale for the offeror's 
        exclusion, including the reason or reasons it was determined 
        not to have a reasonable chance of being selected for contract 
        award or other reason or reasons it was excluded; and
            ``(C) reasonable responses to relevant 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.
    ``(4) The debriefing conducted pursuant to this subsection may not 
disclose the number or identity of other offerors and shall not 
disclose information about the content, ranking, or evaluation of other 
offerors' proposals.
    ``(5) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 1064. TWO-PHASE SELECTION PROCEDURES.

    (a) Procedures Authorized.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), is amended 
by inserting after section 303L the following new section:
``Sec. 303M. Two-phase selection procedures
    ``(a) Authorization.--The contracting officer may use the two-phase 
selection procedures authorized herein for acquiring the design and 
construction of a public building, facility, or work when the criteria 
for use in subsection (b) are met. The two-phase selection procedures 
authorized herein may also be used for entering into a contract for the 
acquisition of property or services other than construction services 
when the criteria described in subsection (b) are met.
    ``(b) Criteria for Use.--The contracting officer shall make a 
determination whether the authorized two-phase selection procedures are 
appropriate for use when the contracting officer anticipates that three 
or more offers will be received for such contract, design work must be 
performed before an offeror can develop a price or cost proposal for 
such contract, the offeror will incur a substantial amount of expense 
in preparing the offer, and after considering in individual situations 
information such as the following:
            ``(1) The extent to which the project requirements have 
        been adequately defined.
            ``(2) The time constraints for delivery of the project.
            ``(3) The capability and experience of potential 
        contractors.
            ``(4) The suitability of the project for use of the two-
        phase selection procedures.
            ``(5) The capability of the agency to manage the two-phase 
        selection process.
            ``(6) Other criteria established by the agency.
    ``(c) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The agency shall develop, either in-house or by 
        contract, a scope of work defining the project for inclusion in 
        the solicitation that provides prospective offerors with 
        sufficient information regarding the Government's requirements 
        which may include criteria and preliminary conceptual design, 
        budget parameters and schedule or delivery requirements to 
        enable the offerors to submit proposals which meet the 
        Government's needs. When the two-phase selection procedure is 
        used for design and construction of a public building, 
        facility, or work and the agency contracts for development of 
        the scope of work, the agency shall contract for architectural/
        engineering services as defined by and in accordance with 
        section 541 and the following of title 40, United States Code.
            ``(2) The contracting officer solicits phase-one proposals 
        that--
                    ``(A) include information on the offeror's--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; or
                            ``(ii) cost or price information.
            ``(3) The evaluation factors to be used in evaluating phase 
        one proposals shall be stated in the solicitation and include 
        specialized experience and technical competence, capability to 
        perform, past performance of the offeror's team (including the 
        architect-engineer and construction members of the team if the 
        project is for the construction of a public building, facility 
        or work) and other appropriate factors, except that cost-
        related or price-related evaluation factors are not permitted. 
        Each solicitation shall establish the relative importance 
        assigned to the evaluation factors and subfactors that must be 
        considered in the evaluation of phase one proposals. The agency 
        evaluates phase one proposals on the basis of the phase one 
        evaluation factors set forth in the solicitation.
            ``(4) The contracting officer selects as the most highly 
        qualified the number of offerors specified in the solicitation 
        to provide the property or services under the contract and 
        requests the selected offerors to submit phase-two competitive 
        proposals that include technical proposals and cost or price 
        information. Each solicitation shall establish with respect to 
        phase two--
                    ``(A) the technical submission requirements for the 
                proposal, including design concepts and/or proposed 
                solutions to requirements addressed within the scope of 
                work, and
                    ``(B) the evaluation factors and subfactors, 
                including cost or price, that must be considered in the 
                evaluation of proposals in accordance with section 
                303B(d).
            ``(5) The agency awards the contract in accordance with 
        section 303B of this title.
    ``(d) Solicitation To State Number of Offerors To Be Selected for 
Phase Two Requests for Competitive Proposals.--A solicitation issued 
pursuant to subsection (c) shall state the maximum number of offerors 
that are to be selected to submit competitive proposals pursuant to 
subsection (c)(4). The maximum number specified in the solicitation 
shall not exceed five unless the agency head determines with respect to 
an individual solicitation that a specified number greater than five is 
in the Government's interest and is consistent with the purposes and 
objectives of the two-phase selection process.
    ``(e) Stipends Authorized.--The head of an executive agency is 
authorized to provide a stipend to competitors that are selected to 
submit phase two proposals and that submit proposals that meet the 
requirements of the solicitation but are not selected for the award.
    ``(f) Requirement for Guidance and Regulations.--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--
            ``(1) regarding the factors that may be considered in 
        determining whether the two-phase contracting procedures 
        authorized by subsection (a) are appropriate for use in 
        individual contracting situations;
            ``(2) regarding the factors that may be used in selecting 
        contractors;
            ``(3) providing for a uniform approach to be used 
        government-wide; and
            ``(4) regarding criteria to be used in determining whether 
        the payment of a stipend is appropriate and for determining the 
        amount of the stipend.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act, is amended by inserting after the item relating to section 
303L the following new item:

``Sec. 303M. Two-phase selection procedures.''.

                     Subpart C--Kinds of Contracts

SEC. 1071. REPEAL OF FEE LIMITATIONS.

    Section 304(b) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254(b)) is amended in the first sentence by--
            (1) striking out the comma after ``used'' and inserting in 
        lieu thereof a period; and
            (2) striking out ``and in the case of a cost-plus-a-fixed-
        fee contract'' and all that follows through the end of the 
        sentence.

                    PART III--ACQUISITIONS GENERALLY

SEC. 1091. REPEAL OF DUPLICATIVE APPROVAL AUTHORITY PROVISION.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (1) by deleting subsection (h); and
            (2) by redesignating subsections (i) and (j) as (h) and (i) 
        respectively.

SEC. 1092. REPEAL OF ANNUAL COMPETITIVE REPORT.

    Section 20 of the Office of Federal Procurement Policy Act (41 
U.S.C. 418) is amended by--
            (1) striking ``and'' at the end of paragraph (b)(3)(B);
            (2) striking (b)(4) in its entirety; and
            (3) redesignating paragraphs (b) (5), (6), and (7) as (b) 
        (4), (5), and (6).

SEC. 1093. REVIEW OF REGULATIONS FOR CONSISTENCY WITH FEDERAL 
              ACQUISITION REGULATION.

    Subsections 25(c) (4), (5), and (6) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 421(c) (4), (5), and (6)) are 
repealed.

SEC. 1094. REPEAL BIANNUAL REPORT ON PROCUREMENT REGULATORY ACTIVITY.

    Subsection (g) of section 25 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 421(g)) is repealed.

                   Subtitle B--Truth in Negotiations

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 1101. REQUIRED REGULATIONS.

    Subsection 2306a(h) of title 10, United States Code, is amended--
            (1) in the first sentence by striking ``that offerors must 
        submit for a contracting officer to'' and substituting in lieu 
        thereof ``that the contracting officer should''; and
            (2) in the second sentence by striking ``at a minimum, 
        shall'' in the last sentence and inserting in lieu thereof 
        ``may''.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 1151. REQUIRED REGULATIONS.

    Section 304A(h) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254a(h)) is amended--
            (1) in the first sentence by striking ``that offerors must 
        submit for a contracting officer to'' and substituting in lieu 
        thereof ``that the contracting officer should''; and
            (2) in the second sentence by striking ``at a minimum, 
        shall'' in the last sentence and inserting in lieu thereof 
        ``may''.

SEC. 1152. CLARIFICATION OF STATUS OF CERTAIN FEDERAL EMPLOYEES HEALTH 
              BENEFITS CONTRACTS.

    Section 304A(b)(1)(A(ii) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 254a(b)(1)(A)(ii)) is amended by 
inserting ``(other than a contract for health benefits under section 
8903(4) of title 5, United States Code)'' after ``public''.

                    Subtitle C--Procurement Protests

              PART I--PROTESTS TO THE COMPTROLLER GENERAL

SEC. 1201. GAO REQUIREMENT TO RULE ON DISPOSITIVE MOTIONS.

    (a) Subparagraph (b)(2)(A) of section 3553 of title 31, United 
States Code, is amended to read as follows:
                    ``(A) within 35 days after the later of the date of 
                the agency's receipt of (i) the notice required by 
                paragraph (b)(1) of this section, or (ii) notification 
                that the Comptroller General has denied a motion to 
                dismiss filed by the agency in accordance with the 
                limitations of section 3554(a)(5)(A) of this title;''.
    (b) Subparagraph (b)(2)(C) of section 3553 of title 31, United 
States Code, is amended to read as follows:
                    ``(C) in a case determined by the Comptroller 
                General to be suitable for the express option under 
                section 3554(a)(2) of this title, within 20 days after 
                the later of (i) the date of the Federal agency's 
                receipt of that determination, or (ii) notification 
                that the Comptroller General has denied a motion to 
                dismiss filed by the agency pursuant to section 
                3554(a)(5)(A) of this title;''.
    (c) Paragraph (b)(3) of section 3553 of title 31, United States 
Code, is amended to read as follows:
            ``(3) A Federal agency need not submit a report to the 
        Comptroller General pursuant to paragraph (2) of this 
        subsection if the agency is sooner notified by the Comptroller 
        General that the protest concerned has been dismissed under 
        section 3554(a) (4) or (5) of this title.''.
    (d) Paragraph (a)(1) of section 3554 of title 31, United States 
Code, is amended to read as follows:
    ``(a)(1) To the maximum extent possible, the Comptroller General 
shall provide for the inexpensive and expeditious resolution of 
protests under this subchapter. Except as provided under paragraph (2) 
of this subsection, the Comptroller General shall issue a final 
decision concerning a protest 125 days after the later of (i) the date 
the protest is submitted to the Comptroller General, or (ii) the date 
that the Comptroller General issues a ruling which denies a motion to 
dismiss filed by the agency in accordance with the limitations of 
section 3554(a)(5)(A) of this title;''.
    (e) Subparagraph (a)(2) of section 3554 of title 31, United States 
Code, is amended to read as follows:
            ``(2) The Comptroller General shall, by regulation 
        prescribed pursuant to section 3555 of this title, establish an 
        express option for deciding those protests which the 
        Comptroller General determines suitable for resolution within 
        65 days after the later of (i) the date the protest is 
        submitted to the Comptroller General, or (ii) the date that the 
        Comptroller General issues a ruling which denies a motion to 
        dismiss filed by the agency in accordance with the limitations 
        of section 3554(a)(5)(A) of this title;''.
    (f) The following new subparagraph is added after section 
3554(a)(4) of title 31, United States Code:
            ``(5)(A) The Comptroller General shall, within 20 days of 
        receipt, resolve motions made by a Federal agency to dismiss 
        the protest if--
                    ``(i) the motion is filed with the Comptroller 
                General within 5 days after the Federal agency receives 
                notification of the protest pursuant to section 
                3553(b)(1) of this chapter and the agency certifies 
                that copies of the motion have been served on all 
                interested parties by hand or electronically, or
                    ``(ii) the motion asserts one or more of the 
                following:
                            ``(I) The protest should be dismissed 
                        pursuant to paragraph (a)(4) of this 
                        subsection.
                            ``(II) The protester is not an interested 
                        party.
                            ``(III) The protest is not timely.
                            ``(IV) The protest does not allege 
                        requisite prejudice.
                            ``(V) The protest is otherwise dismissable 
                        under Comptroller General rules.
            ``(B) The Comptroller General shall consider the comments 
        of interested parties on motions filed by Federal agencies 
        pursuant to paragraph (a)(5)(A) of this subsection if the 
        comments are received by the Comptroller General within 5 days 
        after the date the Federal agencies motion is filed with the 
        Comptroller General.
            ``(C) Motions of Federal agencies asserting the grounds 
        described in paragraph (a)(5)(A)(ii) which are not filed with 
        the Comptroller General within 5 days after the Federal agency 
        receives notification of the protest pursuant to section 
        3553(b)(1) of this chapter may be resolved by the Comptroller 
        General in the final decision on the protest.''.

SEC. 1202. FRIVOLOUS PROTESTS.

    Section 3554 of title 31, United States Code, is amended by 
inserting the following new paragraph ``(5)'' at the end of subsection 
(a):
            ``(5) 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, United States) Code 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 (1) special circumstances 
        would make such payment unjust, or (2) 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.''.

SEC. 1203. DECISIONS ON PROTESTS.

    Subsection (b) of section 3554 of title 31, United States Code, is 
amended in paragraph (1) to read as follows:
            ``(1) With respect to a solicitation for a contract, or a 
        proposed award or the award of a contract, protested under this 
        chapter, the Comptroller General shall review the agency's 
        decision based on the agency record and shall determine that 
        decision is unlawful only if the interested party establishes 
        substantial prejudice and either (i) that the decision was 
        obtained in violation of procedures required by law or 
        regulation, or (ii) that the decision was arbitrary or 
        capricious. However, protests that are based on contracting 
        officer decisions to cancel a solicitation or terminate an 
        award, where the decision is based on a reasonable belief that 
        there was a defect in the source selection process, may be 
        sustained only upon clear and convincing showing that the 
        contracting officer's decision was an abuse of discretion. The 
        agency record shall consist of all information relied upon by 
        the agency in making the decision and any information furnished 
        by the agency explaining or justifying the agency decision. The 
        agency record shall not be supplemented except as necessary to 
        substantially demonstrate bad faith by the agency. Based upon 
        this review, if the Comptroller General determines that the 
        solicitation, proposed award, or award was unlawful, the 
        Comptroller General shall recommend that the Federal agency--
        ''.

SEC. 1204. AWARD OF COSTS.

    Section 3554 of title 31, United States Code, is amended in 
subsection (c)--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5) respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
            ``(3) No party may be paid pursuant to a recommendation 
        made under paragraph (1) unless that party has provided the 
        agency a reasonable opportunity to provide relief pusuant to an 
established agency administrative procedure for resolution of protests 
where such procedure would provide for review by a senior agency 
official and where such procedure would toll protest stay periods 
during the pendency of agency review.''.

SEC. 1205. AVAILABILITY OF FUNDS PENDING ADMINISTRATIVE PROCEDURE.

    (a) In General.--Section 1558 of title 31, United States Code, is 
amended to read as follows:
``Sec. 1558. Availability of funds following resolution of a formal 
              protest or challenge
    ``(a) Notwithstanding section 1552 of this title or any other 
provision of law, funds available to an agency for obligation for a 
contract at the time a protest or challenge is filed in connection with 
a solicitation for, proposed award of, or award of such contract, shall 
remain available for obligation for 125 calendar days after the date on 
which the final ruling is made on the protest or challenge. A ruling is 
considered final on the date on which the time allowed for filing an 
appeal or request for reconsideration has expired, or the date on which 
a decision is rendered on such an appeal or request, whichever is 
later.
    ``(b) Subsection (a) applies with respect to--
            ``(1) any protest filed under subchapter V of chapter 35 of 
        this title or under section 111(f) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 759(f)); or
            ``(2) any administrative or judicial proceeding challenging 
        a solicitation for a contract, a proposed award or the award of 
        a contract, or the eligibility of an awardee or potential 
        awardee of a contract, that has the effect of precluding an 
        Executive agency from making an award of a contract or 
        proceeding with the procurement.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 15 of title 31, United States Code, is amended by amending the 
item relating to section 1558 to read as follows:

``1558. Availability of funds following resolution of a formal protest 
                            or challenge.''.

                PART II--PROTESTS IN THE FEDERAL COURTS

SEC. 1211. JURISDICTION OF THE UNITED STATES COURT OF FEDERAL CLAIMS.

    (a) Claims Against the United States.--Section 1491 of title 28, 
United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 1491. Claims against United States generally; bid protests; 
              actions involving Tennessee Valley Authority'';
            (2) by redesignating subsection (b) as subsection (d);
            (3) by redesignating subsection (a)(2) as subsection (b);
            (4) by redesignating subsection (a)(1) as subsection (a);
            (5) by striking subsection (a)(3);
            (6) in subsection (a) (as redesignated by subsection 
        (a)(4)), by inserting ``Claims Against the United States.--
        ''after ``(a)'';
            (7) in subsection (b) (as redesignated by subsection 
        (a)(3)), by inserting ``Remedy and Relief.--'' after ``(b)''; 
        and
            (8) by inserting after subsection (b) (as redesignated by 
        subsection (a)(3)) the following new subsection:
    ``(c) Bid Protests.--(1) The United States Court of Federal Claims 
shall have exclusive judicial jurisdiction of any action by an 
interested party objecting to a solicitation by a Federal agency for 
bids or proposals for a proposed contract or to a proposed award or the 
award of a contract or to any finding under 31 U.S.C. 3553(c)(2)(A) or 
(d)(2)(A) to award or continue performance of a contract 
notwithstanding a protest. The court shall have jurisdiction of any 
such action whether suit is instituted before or after the contract is 
awarded. To afford relief in such an action, the court may award such 
relief as it deems proper, including declaratory and injunctive relief. 
In exercising this jurisdiction, the court shall give due regard to the 
interests of national defense and national security and the need for 
expeditious resolution of the action. The district courts shall have no 
jurisdiction of any such action.
    ``(2) The court shall review the agency's decision based on the 
agency record and shall determine that decision is unlawful only if the 
interested party established substantial prejudice and either (i) that 
the decision was obtained in violation of procedures required by law or 
regulation, or (ii) that the decision was arbitrary or capricious. 
However, protests that are based on contracting officer decisions to 
cancel a solicitation or terminate an award, where the decision is 
based on a reasonable belief that there was a defect in the source 
selection process, may be sustained only upon clear and convincing 
showing that the contracting officer's decision was an abuse of 
discretion. The agency record shall consist of all information relied 
upon by the agency in making the decision and any information furnished 
by the agency explaining or justifying the agency decision. The agency 
record shall not be supplemented except as necessary to substantially 
demonstrate bad faith by the agency.
    ``(3) The term `interested party' shall have the meaning given in 
section 3551 in title 31.''.
            (9) in subsection (d) (as redesignated by subsection 
        (a)(2)), by inserting ``Tennessee Valley Authority.--''after 
        ``(d)''.
    (b) Judgments, Awards, and Compromise Settlements.--Section 
1304(a)(3)(A) of title 31 is amended by inserting ``1491,'' after 
``section''.
    (c) Nonexclusivity of Remedies; Matters Included in Agency 
Record.--Section 3556 of title 31, United States Code is amended by 
striking out the first sentence and inserting in lieu thereof the 
following new sentence: ``This subchapter does not give the Comptroller 
General exclusive jurisdiction over protests, and nothing contained in 
this subchapter shall affect the right of any interested party to file 
a protest with the contracting agency or to file an action in the 
United States Court of Federal Claims.''.
    (d) Conforming Amendment in Brooks Act.--Section 111(f)(6)(C) of 
the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
759(f)(6)(C)) is amended by striking out ``a district court of the 
United States or the United States Claims Court.'' and inserting in 
lieu thereof ``the United States Court of Federal Claims.''.

     PART III--PROTESTS IN PROCUREMENT OF AUTOMATIC DATA PROCESSING

SEC. 1431. DECISIONS ON PROTESTS

    Section 111 (f) of the Federal Property and Administrative Services 
Act of 1949, (40 U.S.C. 759(f)) is amended in paragraph (1) by deleting 
the second sentence and inserting in lieu thereof the following: ``The 
Board shall review the agency's decision based on the agency record and 
shall determine that decision is unlawful only if the interested party 
establishes substantial prejudice and either (i) that the decision was 
obtained in violation of procedures required by law or regulation, or 
(ii) that the decision was arbitrary or capricious. However, protests 
that are based on contracting officer decisions to cancel a 
solicitation or terminate an award, where the decision is based on a 
reasonable belief that there was a defect in the source selection 
process, may be sustained only upon clear and convincing showing that 
the contracting officer's decision was an abuse of discretion. The 
agency record shall consist of all information relied upon by the 
agency in making the decision and any information furnished by the 
agency explaining or justifying the agency decision. The agency record 
shall not be supplemented except as necessary to substantially 
demonstrate bad faith by the agency.''.

SEC. 1432. INTERLOCUTORY APPEALS.

    Section 111(f) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759(f)) is amended--
            (1) in section (1) by striking out the fourth sentence; and
            (2) in section (6) by adding a new paragraph (D) to read as 
        follows:
                    ``(D) A written determination by the Board that--
                            ``(i) the procurement is subject to this 
                        section; or
                            ``(ii) the protest is timely filed in 
                        accordance with this section; or
                            ``(iii) the party filing the protest is an 
                        `interested party' in accordance with the 
                        definition contained in this section is subject 
                        to an interlocutory appeal by the head of the 
                        Federal agency concerned and by any interested 
                        party, including interested parties who 
                        intervene in any protest filed under this 
                        subsection. The interlocutory appeal must be 
                        taken within 10 days of the Board's written 
                        determination. Upon proper agency motion, the 
                        Court of Appeals for the Federal Circuit may 
                        stay the Board's proceedings.''.

SEC. 1433. SUSPENSION OF PROCUREMENT PENDING PROTEST.

    Section 111(f) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759(f)) is amended--
            (1) in clause (ii) of subparagraph (2)(B) by substituting 
        the word ``agency'' for the word ``board''; and
            (2) in paragraph (3) by striking out subparagraph (B) and 
        inserting in lieu thereof the following:
                    ``(B) The Board shall suspend the procurement 
                authority of the Administrator or the Administrator's 
                delegation of procurement authority to acquire goods 
                and services under the contract which are not 
                previously delivered and accepted unless the head of 
                the contracting activity makes a written finding that 
                contract performance will be in the best interest of 
                the United States.''.

SEC. 1434. DISPOSITIVE MOTIONS.

    Section 111(f)(4)(A) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(4)(A)) is amended at the end by 
adding the following sentence: ``If the Board receives timely filed 
dispositive motions, the Board shall decide such motions in writing as 
soon as practicable, but in any event, not later than the date 
established for the hearing on the merits.''.

SEC. 1435. FRIVOLOUS PROTESTS.

    Section 111(f) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759) is amended by adding the following after 
subparagraph (f)(4)(C):
                    ``(D) If the board expressly finds that a protest 
                or a portion of a protest is frivolous, has not been 
                brought or pursued in good faith, or does not state on 
                its face a valid basis for protest, the protester or 
                other interested party, who joins the protest, shall be 
                liable to the United States for payment of, and the 
                board shall direct payment for 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, unless (1) special circumstances would 
                make such payment unjust, or (2) the protester obtains 
                documents or other information after the protest is 
                filed with the board, which establishes that the 
                protest or a portion of the protest is frivolous or has 
                not been brought in good faith, and the protester then 
                promptly withdraws the protest or portion of the 
                protest.''.

SEC. 1436. 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--
            (1) by inserting ``(i)'' after ``(C)''; and
            (2) by inserting after subparagraph (i) the following new 
        subparagraph (ii):
                    ``(ii) No party may be paid pursuant to a decision 
                made under subparagraph (C)(i) unless that party has 
                provided the agency a reasonable opportunity to provide 
                relief pursuant to an established agency administrative 
                procedure for resolution of protests where such 
                procedure would provide for review by a senior agency 
                official and where such procedure would toll protest 
                stay periods during the pendency of agency review.''.

                            PART IV--GENERAL

SEC. 1441. PROTESTS OF PROCUREMENTS MADE THROUGH THE FEDERAL 
              ACQUISITION COMPUTER NETWORK UNDER THE SIMPLIFIED 
              ACQUISITION THRESHOLD.

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

``SEC. 35. PROTESTS OF PROCUREMENTS UNDER THE SIMPLIFIED ACQUISITION 
              THRESHOLD.

    ``(a) Protests.--A protest, other than to the procuring agency, is 
not authorized in connection with the award or proposed award of any 
procurement in an amount not exceeding the simplified acquisition 
threshold if conducted through a system with interim FACNET capability 
certified pursuant to section 30A(a)(1) or with full FACNET capability 
certified pursuant to section 30A(a)(2);
    ``(b) Definition.--For purposes of this section, the term 
`simplified acquisition threshold' has the meaning given such term in 
section 4(11)(A) of this Act.
    ``(c) Inapplicability.--The provisions of this section shall not 
apply to protests regarding business size or status as defined in 
sections 8 and 15 of the Small Business Act.''.

SEC. 1442. OFFEROR STATEMENTS TO REFRAIN FROM PROTESTING PROCUREMENTS.

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

``SEC. 36. OFFEROR STATEMENTS TO REFRAIN FROM PROTESTING PROCUREMENTS.

    ``(a) Statements Not To Protest.--An offeror may include in an 
offer a statement that the offeror will not file a procurement protest 
with any judicial, legislative, or executive body, other than the 
agency issuing the solicitation, except with respect to an agency 
determination favoring an offeror who has not made such statement in 
its offer. Any protest filed in violation of such statement shall be 
dismissed.
    ``(b) Treatment of Statements Not To Protest in Evaluation of 
Offers.--The inclusion or non-inclusion in an offer of a statement by 
an offeror agreeing not to protest the award or proposed award of a 
contract shall not be considered by an agency in evaluating the 
proposal. The notice of award required by section 416(a)(1)(C) may 
include information about statements provided by offerors.''.

SEC. 1443. SENSE OF CONGRESS ON AGENCY RESOLUTION OF PROTESTS.

    It is the sense of Congress that executive agencies should consider 
the establishment, by the head of the agency, of agency administrative 
remedial procedures for the resolution of protests as a discretionary 
alternative to protest fora outside the agency. It is further the sense 
of Congress that during the pendency of such procedures, protest stay 
periods should be tolled.

          Subtitled D--Policy, Definitions, and Other Matters

SEC. 1551. REPEAL OF MULTI-YEAR LIMITATION ON INSPECTION, MAINTENANCE, 
              AND REPAIR.

    Section 210 of the Federal Property and Administrative Act of 1949, 
as amended, (40 U.S.C. 490) is amended--
            (1) by deleting paragraph (14); and
            (2) by redesignating paragraphs (15, (16), (17), (18), and 
        (19) as (14), (15), (16), (17), and (18) respectively.

SEC. 1552. PUBLIC UTILITIES SERVICES.

    Section 210(a) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 490) as amended by section 1551 is further 
amended by adding at the end the following:
            ``(19) accept and pay for public utility service from an 
        entity which is a monopoly providing services under a tariff at 
        the lowest applicable rates approved or set by a Federal, State 
        or local governmental body in accordance with the terms and 
        conditions of such tariff, without entering into a contract.''.

SEC. 1553. CONTRACTING FOR GUARDS, ELEVATOR OPERATORS, MESSENGERS, AND 
              CUSTODIANS.

    Section 210(a) of the Federal Property and Administrative Services 
Act of 1949, as amended (40 U.S.C. 490), is amended to add the 
following section (1):
    ``(l) Notwithstanding any other provision of law, funds 
appropriated pursuant to section 210(f) of the Federal Property and 
Administrative Services Act of 1949, as amended, shall be available for 
the procurement by contract for the services of guards, elevator 
operators, messengers, and custodians without limitation.''.

                   TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2001. VESTITURE OF TITLE.

    Section 2307(e) of title 10, United States Code, is amended by 
inserting after paragraph (3) the following new paragraph:
            ``(4) When payments have been made under subsection (a), 
        title to parts, materials, inventory, work in progress, and 
        other property, hereinafter collectively referred to as 
        property, shall vest in the United States. Vestiture shall be 
        immediately upon the date of the contract for property acquired 
        or produced before that date. Otherwise, vestiture shall occur 
        when the property is or should have been allocable or properly 
        chargeable to the contract. Title shall vest in the United 
        States regardless of any prior or subsequently asserted 
        security interest in the property. This right to take title may 
        be waived by the head of the agency for an individual 
        acquisition or a class of acquisitions or by the Federal 
        Acquisition Regulation for a class of acquisitions 
        governmentwide.''.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2051. VESTITURE OF TITLE.

    Section 305(e) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 255) is amended by inserting after subsection 
(3) the following new subsection (4):
            ``(4) When payments have been made under subsection (a), 
        title to parts, materials, inventory, work in progress, and 
        other property, hereinafter collectively referred to as 
        property, shall vest in the United States. Vestiture shall be 
        immediately upon the date of the contract for property acquired 
        or produced before that date. Otherwise, vestiture shall occur 
        when the property is or should have been allocable or properly 
        chargeable to the contract. Title shall vest in the United 
        States regardless of any prior or subsequently asserted 
        security interest in the property. This right to take title may 
        be waived by the head of the agency for an individual 
        acquisition or a class of acquisitions or by the Federal 
        Acquisition Regulation for a class of acquisitions 
        governmentwide.''.

                      Subtitle B--Cost Principles

                  PART I--CIVILIAN AGENCY ACQUISITIONS

SEC. 2101. APPLICABILITY OF COST PRINCIPLES.

    Section 306 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 256) is amended in subsection (l)(1) by inserting 
``a contract for health benefits under section 8903(1)-(3) of title 5, 
United States Code, and'' after ``means''.

                    PART II--ACQUISITIONS GENERALLY

SEC. 2151. ALLOWABLE CONTRACT COSTS.

    (a) Protest Costs.--The Federal Acquisition Regulation shall 
identify those costs incurred in preparation, filing, or pursuit of a 
protest, including attorneys' fees and consultant and expert witness 
fees which are unallowable, in whole or in part, under covered 
contracts.
    (b) Covered Contract Defined.--The term ``covered contract'' has 
the meaning given such term in section 2324(l) of title 10, United 
States Code, and section 306(l) of the Federal Property and 
Administrative Services Act of 1949.

                    Subtitle C--Claims and Disputes

SEC. 2251. DIVESTITURE OF DISTRICT COURTS OF DISPUTE JURISDICTION.

    Section 1346(a)(2) of title 28, United States Code, is amended to 
read as follows:
            ``(2) Any other civil action or claim against the United 
        States, not exceeding $10,000 in amount, founded either upon 
        the Constitution, or any Act of Congress, or any regulation of 
        an executive department, or upon any express or implied 
        contract with the United States, or for liquidated or 
        unliquidated damages in cases not sounding in tort, except that 
        the district courts shall not have jurisdiction over any civil 
        action or claim against the United States or any Federal entity 
        which relates in any manner to a contract subject to the 
        Contract Disputes Act of 1978, including, but not limited to, a 
        claim which seeks to establish the existence or nonexistence of 
        such a contract with the United States, seeks to establish that 
        an existing contract subject to the Contract Disputes Act is 
        void, or seeks to determine and construe the terms of such a 
        contract. This exception bars the district courts from 
        exercising any jurisdiction of the above-described civil 
        actions or claims pursuant to section 1331, 1334 of title 28, 
        United States Code, or any other provision of law including any 
        provision giving a Federal entity the right to sue or be sued 
        in its own name.''.

SEC. 2252. CONTRACT DISPUTES ACT IMPROVEMENT

    Section 10(a)(3) of the Contract Disputes Act of 1978 (41 U.S.C. 
609(a)(3)) is amended by striking out ``twelve months'' each place it 
appears and inserting in lieu thereof in each instance ``ninety days''.

                       Subtitle D--Miscellaneous

SEC. 2301. ACCOUNTING FOR ADVISORY AND ASSISTANCE SERVICES.

    Section 1105 of title 31, United States Code, is amended by 
striking subsection (g).

SEC. 2302. WAIVERS FROM CANCELLATION OF FUNDS.

    Notwithstanding section 1552(a) of title 31, United States Code, 
(1) funding appropriated for satellite on-orbit incentive fees will 
remain available for obligation until the fee is earned, and (2) 
funding appropriated for Shipbuilding and Conversion, Navy, and for 
other government shipbuilding appropriations, available for engineering 
services, tests, evaluations, and other such budgeted work that must be 
performed in the final stage of ship construction shall be available 
for obligation until the purpose for which such monies were 
appropriated is satisfied.

                      TITLE III--COMMERCIAL ITEMS

SEC. 3001. COMMERCIAL ITEMS.

    Section 4(12)(F) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(12)(F)) is amended to read as follows:
            ``(F) Services offered and sold competitively, in 
        substantial quantities, in the commercial marketplace based on 
        established prices for specific tasks performed and under 
        standard commercial terms and conditions.''.

               TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD

                     Subtitle A--Threshold Defined

SEC. 4001. SIMPLIFIED ACQUISITION THRESHOLD DEFINED.

    Section 4(11) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(11)) is amended to read as follows:
            ``(11) The term `simplified acquisition threshold' means:
                    ``(A) $100,000; or
                    ``(B) $1,000,000 for the acquisition of services, 
                including construction, when the procurement is 
                conducted as a small business set-aside and if supply 
                items are expected to constitute less than 20 percent 
                of the total value of the contract.''.

  Subtitle B--Inapplicability of Laws to Acquisitions at or Below the 
                    Simplified Acquisition Threshold

SEC. 4101. MILLER ACT.

    Section 4104(b)(2) of the Federal Acquisition Streamlining Act of 
1994 is repealed.

                   Subtitle C--Simplified Procedures

SEC. 4201. REPEAL OF DUPLICATIVE AUTHORITY FOR SIMPLIFIED ACQUISITION 
              PURCHASES.

    Section 31 of the Office of Federal Procurement Policy Act is 
amended--
            (1) by striking out subsections (a), (b), and (c);
            (2) by redesignating subsections (d), (e), and (f) as (a), 
        (b), and (c) respectively; and
            (3) in subsection (b) as redesignated by striking out 
        ``pursuant to this section'' in paragraphs (1) and (2) and 
        inserting in lieu thereof ``pursuant to section 2304(g) of 
        title 10 and section 253(g) of title 41, United States Code.''.

SEC. 4202. AMENDMENT TO CONFORM PROCUREMENT NOTICE POSTING THRESHOLDS.

    Section 18(a)(1)(B) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 416(a)(1)(B)) is amended--
            (1) by inserting, after the word ``contract'' the 
        following: ``expected to exceed $10,000 but not to exceed 
        $25,000'' and
            (2) by deleting subparagraphs (i) and (ii) entirely.

SEC. 4203. EXEMPTION FROM WAIT PERIOD WHEN USING DETAILED SYNOPSIS.

    (A) Wait Periods.--Paragraph (3)(A) of section 18(a) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 416(a)(3)) is amended by 
adding ``except when the notice includes a description of the item(s) 
to be acquired along with all other information necessary for the 
offeror to prepare an offer'' after ``published by the Secretary of 
Commerce''.
    (b) Limitation.--Subsection (a) shall not apply to the extent the 
President determines it is inconsistent with any international 
agreement to which the United States is a party.

SEC. 4204. EXEMPTION FROM SYNOPSIZING REQUIREMENTS.

    (a) Exemption.--Subsection (c) of section 18 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 416(c)(1)), is amended--
            (1) in paragraph (1)(A) by striking ``for an amount not 
        greater than the simplified acquisition threshold and is''; and
            (2) in paragraph (1)(B)(i) by striking ``for an amount not 
        greater than $250,000 and is''.
    (b) Response Times.--Such subsection is further amended by adding 
at the end the following new paragraph (4):
            ``(4) In all procurements accomplished by interim or full 
        FACNET, contracting officers shall provide a reasonable period 
        within which for contractors to respond to the solicitation 
        commensurate with the complexity of the procurement.''.
    (c) Limitations.--Subsections (a) and (b) shall not apply to the 
extent the President determines it is inconsistent with any 
international agreement to which the United States is a party.

SEC. 4205. REPEAL OF DUPLICATIVE PROCUREMENT NOTICE PROVISION.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (1) by striking out subsections (e), (f), and (g);
            (2) by redesignating subsections (h) and (i) as 
        redesignated by section 1091 as subsections (e) and (f) 
        respectively; and
            (3) in subsection (e), as redesignated, by striking ``under 
        subsection (e)'' and inserting in lieu thereof ``pursuant to 
        section 18 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 416)''.

SEC. 4206. TECHNICAL AMENDMENTS.

    (a) Section 18 of the Office of Federal Procurement Policy Act (41 
U.S.C. 416) is amended in subparagraph (c)(1)(E) by inserting, ``a task 
order contract, or a delivery order contract'' after ``requirements 
contract''.

                 Subtitle D--Micro-Purchase Procedures

SEC. 4301. MICRO-PURCHASES.

    Section 32(d) of the Office of Federal Procurement Policy Act (42 
U.S.C. 428) is amended by striking out ``the contracting officer 
determines that the price for the purchase is'' and inserting in lieu 
thereof ``if the price for the purchase is considered''.

                    TITLE V--ACQUISITION MANAGEMENT

                       Subtitle A--Pilot Programs

SEC. 5001. ACQUISITION RESEARCH DEMONSTRATION PROJECTS.

    Section 15 of the Office of Federal Procurement Policy Act (41 
U.S.C. 413) is amended to read as follows:

``SEC. 15. ACQUISITION DEMONSTRATION PROJECTS.

    ``(a) The Administrator may authorize agencies in consultation with 
agency heads to conduct and evaluate test programs to determine whether 
a specified change in acquisition policies or procedures would result 
in improved Federal acquisition management. The conduct of a test 
program shall not be limited by any lack of specific authority under 
this section to take the action contemplated or by any law, rule or 
regulation that is inconsistent with the test program or that impedes 
its full implementation. To the extent necessary, the Administrator may 
waive any provision of law, rule or regulation necessary to implement a 
demonstration project successfully.
    ``(b) Before conducting any test program, the Agency participating 
in the program shall develop a plan for the project which identifies--
            ``(1) the purposes of the project;
            ``(2) the methodology, duration, and anticipated costs;
            ``(3) the methodology and criteria for evaluation;
            ``(4) a specific description of any aspect of the project 
        for which the lack of specific authority exists; and
            ``(5) a specific citation to any provision of law, rule or 
        regulation which, if not waived under this section, would 
        prohibit the conduct of the project or any part of the project 
        as proposed.
    ``(c) Unless a longer time period for a demonstration project is 
approved by the Administrator and the reasons for the extension are 
described in the plan in accordance with section (b) above, each 
demonstration project shall terminate before the end of the five year 
period beginning on the date on which the project takes effect, except 
that the project may continue beyond the date to the extent necessary 
to validate the results of the project.
    ``(d) The Administrator or the Agency head may terminate any 
project if he determines that the project is no longer in the best 
interests of the public or the Federal Government.
    ``(e) The Administrator shall provide for an evaluation of the 
results of each demonstration project and its impact on improving 
public management.
    ``(f) The head of an agency may submit a test plan that specifies 
the use of adequate competition when conducting an acquisition that is 
a recompetition for a continuing requirement where the agency head 
certifies that the incumbent contractor has met or exceeded the cost, 
schedule, and performance requirements established in the current 
contract.
    ``(g) The Administrator shall prescribe regulations as are 
necessary to carry out the purpose of this section.
    ``(h) A program to test procurement methods and procedures under 
this section may not be carried out unless approved by the heads of the 
executive agencies selected to carry out such programs.''.

                       Subtitle B--Miscellaneous

SEC. 5051. ADMINISTRATIVE PROCEDURES, DEPARTMENT OF ENERGY.

    ``Section 501(b)(3) of the Department of Energy Organization Act 
(42 U.S.C. 7191(b)(3)) is amended to read as follows:
    ``For purposes of this title, the exception from the requirements 
of section 553 of title 5, United States Code, provided by subsection 
(a)(2) of such section with respect to grants or loans shall not be 
available.''.

              TITLE VI--OTHER PROCUREMENT-RELATED MATTERS

                Subtitle A--Standards of Conduct/Ethics

SEC. 6001. DISCLOSING AND OBTAINING CONTRACTOR BID OR PROPOSAL 
              INFORMATION OR SOURCE SELECTION INFORMATION.

    (a) Section 27 of the Office of Federal Procurement Policy Act (41 
U.S.C. 423) is amended--
            (1) by repealing subsections (a) through (e) and (g) 
        through (p);
            (2) by amending subsection (f) by striking the words 
        ``Restrictions Resulting From Procurement Activities of 
        Procurement Officials.--'' and by redesignating subsection (f) 
        as subsection (i); and
            (3) by adding the following before subsection (i):

``SEC. 27. DISCLOSING AND OBTAINING CONTRACTOR BID OR PROPOSAL 
              INFORMATION OR SOURCE SELECTION INFORMATION AND 
              RESTRICTIONS RESULTING FROM PROCUREMENT ACTIVITIES OF 
              PROCUREMENT OFFICIALS.

    ``(a) A present or former officer or employee of the United States, 
or a person who is acting or has acted for or on behalf of or who is 
advising or has advised the United States with respect to a Federal 
agency procurement and who--
            ``(1) by virtue of that office, employment, or relationship 
        has or had access to contractor bid or proposal information or 
        source selection information, and
            ``(2) other than as provided by law, knowingly discloses 
        that information before the award of a Federal agency 
        procurement contract to which the information relates, is 
        subject to the penalties and administrative actions set forth 
        in subsection (d).
    ``(b) Whoever, other than as provided by law, knowingly obtains 
contractor bid or proposal information or source selection information 
before the award of a Federal agency procurement contract to which the 
information relates, is subject to the penalties and administrative 
actions set forth in subsection (d).
    ``(c) Whoever, other than as provided by law, knowingly violates 
the terms of a protective order, issued by the Comptroller General or 
the board of contract appeals of the General Services Administration in 
connection with a protest against the award or proposed award of a 
Federal agency procurement contract, by disclosing or obtaining 
contractor bid or proposal information or source selection information 
is subject to the penalties and administrative actions set forth in 
subsection (d).
    ``(d) The penalties and administrative actions for an offense under 
subsection (a), (b), or (c), are as follows:
            ``(1) Criminal penalties.--
                    ``(A) Whoever engages in the conduct constituting 
                the offense shall be imprisoned for not more than one 
                year or fined in the amount set forth in section 3571 
                of title 18, United States Code, or both.
                    ``(B) Whoever engages in the conduct constituting 
                the offense for the purpose of either--
                            ``(i) exchanging the information covered by 
                        subsections (a), (b), and (c), for anything of 
                        value, or
                            ``(ii) obtaining or giving anyone a 
                        competitive advantage in the award of a Federal 
                        agency procurement contract, shall be 
                        imprisoned for not more than 15 years or fined 
                        in the amount set forth in section 3571 of 
                        title 18, United States Code, or both.
            ``(2) Civil penalties.--The Attorney General may bring a 
        civil action in the appropriate United States district court 
        against any person who engages in conduct constituting an 
        offense under subsection (a), (b), or (c). Upon proof of such 
        conduct by a preponderance of the evidence, the person is 
        subject to a civil penalty. An individual who engages in such 
        conduct is subject to a civil penalty of not more than $50,000 
        for each violation plus twice the amount of compensation which 
        the individual received or offered for the prohibited conduct. 
        An organization that engages in such conduct is subject to a 
        civil penalty of not more than $500,000 for each violation plus 
        twice the amount of compensation which the organization 
        received or offered for the prohibited conduct.
            ``(3) Administrative actions. If a Federal agency receives 
        information that a contractor or a person has engaged in 
        conduct constituting an offense under subsection (a), (b), or 
        (c), the Federal agency shall consider one or more of the 
        following actions, as appropriate:
                    ``(A) Canceling the Federal agency procurement when 
                a contract has not been awarded;
                    ``(B) Declaring void and rescinding a contract in 
                relation to which there has been either--
                            ``(i) a conviction for an offense under 
                        subsection (a), (b), or (c), committed by the 
                        contractor or someone acting for the 
                        contractor, or
                            ``(ii) a determination by the head of the 
                        agency based upon a preponderance of the 
                        evidence that the contractor or someone acting 
                        for the contractor has engaged in such conduct.
                If such action is taken, the United States is entitled 
                to recover in addition to any penalty prescribed by 
                law, the amount expended under the contract;
                    ``(C) Initiating suspension or debarment 
                proceedings for the protection of the Government in 
                accordance with procedures in the Federal Acquisition 
                Regulation. In this regard, engaging in conduct 
                constituting an offense under subsection (a), (b), or 
                (c), affects the present responsibility of a Government 
                contractor or subcontractor; or
                    ``(D) Initiating adverse personnel action, pursuant 
                to the procedures in chapter 75 of title 5, United 
                States Code, or other applicable law or regulation.
    ``(e) For purposes of this section:
            ``(1) The term `contracting officer' means a person who, by 
        appointment in accordance with applicable regulations, has the 
        authority to enter a Federal agency procurement contract on 
        behalf of the Government and to make determinations and 
        findings with respect to such a contract.
            ``(2) The term `contractor bid or proposal information' 
        means the following information submitted to a Federal agency 
        as part of or in connection with a bid or proposal to enter 
        into a Federal agency procurement contract, if that information 
        has not been previously made available to the public or 
        disclosed publicly;
                    ``(A) Cost or pricing data;
                    ``(B) Indirect costs and direct labor rates;
                    ``(C) Proprietary information about manufacturing 
                processes, operations, or techniques marked by the 
                contractor in accordance with applicable law or 
                regulation; or
                    ``(D) Information marked by the contractor as 
                `contractor bid or proposal information,' in accordance 
                with applicable law or regulation.
            ``(3) The term `Federal agency' has the meaning given that 
        term in section 3 of the Federal Property and Administrative 
        Services Act (40 U.S.C. 472).
            ``(4) The term `Federal agency procurement' means the 
        competitive acquisition by contract of supplies or services 
        (including construction) from non-Federal sources by a Federal 
        agency using appropriated funds.
            ``(5) The term `protest' means a written objection by an 
        interested party to the award or proposed award of a Federal 
        agency procurement contract, pursuant to section 111 of the 
        Federal Property and Administrative Services Act (40 U.S.C. 
        759) or subchapter V of chapter 35 of title 31, United States 
        Code.
            ``(6) The term `source selection information' means the 
        following information prepared for use by a Federal agency for 
        the purpose of evaluating a bid or proposal to enter into a 
        Federal agency procurement contract, if that information has 
        not been previously made available to the public or disclosed 
        publicly:
                    ``(A) Bid prices submitted in response to a Federal 
                agency solicitation for sealed bids or lists of those 
                bid prices prior to public bid opening;
                    ``(B) Proposed costs or prices submitted in 
                response to a Federal agency solicitation or lists of 
                those proposed costs or prices;
                    ``(C) Source selection plans;
                    ``(D) Technical evaluation plans;
                    ``(E) Technical evaluations of proposals;
                    ``(F) Cost or price evaluations of proposals;
                    ``(G) Competitive range determinations which 
                identify proposals that have a reasonable chance of 
                being selected for award of a contract;
                    ``(H) Rankings of bids, proposals, or competitors;
                    ``(I) The reports and evaluations of source 
                selection panels or boards or advisory councils; or
                    ``(J) Other information marked as `source selection 
                information' based upon a case-by-case determination by 
                the head of the agency, his designee, or the 
                contracting officer that its disclosure would 
                jeopardize the integrity or successful completion of 
                the Federal agency procurement to which the information 
                relates.
    ``(f) No person may file a protest against the award or proposed 
award of a Federal agency procurement contract alleging an offense 
under subsection (a), (b), or (c), of this section, nor may the 
Comptroller General or the board of contract appeals of the General 
Services Administration consider such an allegation in deciding such a 
protest, unless that person reported information to the Federal agency 
responsible for the procurement that he believed constituted evidence 
of the offense no later than ten working days after he first discovered 
the possible offense.
    ``(g) This section does not--
            ``(1) restrict the disclosure of information to or its 
        receipt by any person or class of persons authorized, in 
        accordance with applicable agency regulations or procedures, to 
        receive that information;
            ``(2) restrict a contractor from disclosing its own bid or 
        proposal information or the recipient from receiving that 
        information;
            ``(3) restrict the disclosure or receipt of information 
        relating to the Federal agency procurement after it has been 
        canceled by the Federal agency prior to contract award unless 
        the Federal agency plans on resuming the procurement;
            ``(4) authorize the withholding of information from nor 
        restrict its receipt by the Congress, a committee or 
        subcommittee thereof, the Comptroller General, a Federal 
        agency, or an Inspector General of a Federal agency;
            ``(5) authorize the withholding of information from nor 
        restrict its receipt by the Court of Federal Claims, any board 
        of contract appeals of a Federal agency or the Comptroller 
        General in the course of a protest against the award or 
        proposed award of a Federal agency procurement contract;
            ``(6) prohibit individual meetings between an agency 
        employee and a competitor for or recipient of a contract or 
        subcontract under a Federal agency procurement, provided that 
        unauthorized disclosure or receipt of contractor bid or 
        proposal information or source selection information does not 
        occur; or
            ``(7) limit the applicability of the requirements, 
        sanctions, contract penalties, and remedies established under 
        any other law or regulation.
    ``(h) This section does not apply to the conduct of a Federal 
agency procurement for an amount not greater than the simplified 
acquisition threshold as defined in section 4(11).''.
    ``(b) Government-wide regulations and guidelines deemed appropriate 
to carry out this Act shall be issued in the Federal Acquisition 
Regulation by the Department of Defense, the General Services 
Administration, and the National Aeronautics and Space Administration, 
in coordination with the Federal Acquisition Regulatory Council.

SEC. 6002. REPEALS.

    Subsection 32(c) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 28(c)) is repealed.

SEC. 6003. CONFORMING AMENDMENTS.

    Section 32 of the Office of Federal Procurement Policy Act is 
amended by redesignating subsections (d), (e), (f), and (g) as (c), 
(d), (e), and (f).

                   Subtitle B--Additional Amendments

SEC. 6051. INAPPLICABILITY OF PROHIBITION ON GRATUITIES.

    Section 2207 of title 10, United States Code, is amended--
            (1) by inserting ``in excess of the simplified acquisition 
        threshold (as defined in section 4(11) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(11))'' after ``may not be 
        spent under a contract''; and
            (2) by inserting ``or for commercial items as defined in 
        section 4(12) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(12))'' after ``a contract for personal 
        services''.

                   Subtitle C--Intellectual Property

SEC. 6101. TECHNOLOGY INNOVATION.

    (a) Cooperative Research and Development Agreements.--Section 12 of 
the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3710a) is amended--
            (1) in subsection (a)(1), by striking out ``(including 
        licensees of inventions owned by the Federal agency);'' and 
        inserting in lieu thereof ``(including licensees of inventions 
        or copyrights owned by the Federal agency);'' and further by 
        deleting ``and'';
            (2) by adding ``and'' at the end of paragraph (2);
            (3) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(3) to negotiate licensing agreements following the 
        criteria set forth in section 209 of title 35 or under other 
        authorities (in the case of a Government-owned, contractor-
        operated laboratory, subject to subsection (c) of this section) 
        for copyrights owned by the Government pursuant to subsection 
        (h) or copyrights that may be voluntarily assigned to the 
        Government.'';
            (4) in subsection (b), by amending paragraphs (2) and (3) 
        to read as follows:
            ``(2) grant or agree to grant in advance, to a 
        collaborating party, patent and copyright licenses or 
        assignments, or options thereto, in any invention made or 
        computer programs prepared in whole or in part by a laboratory 
        employee under the agreement, retaining a nonexclusive, 
        nontransferable, irrevocable, paid-up license to practice the 
        invention and exercise all rights under the copyright or have 
        the invention practiced and have all rights under any copyright 
        for the computer program exercised throughout the world by or 
        on behalf of the Government and such other rights as the 
        Federal laboratory deems appropriate; provided in agreements 
        having as a primary purpose the research, development or 
        utilization of products or services for the commercial market, 
        agencies may limit the retained government license under any 
        copyright for a computer program, reserving, however, at a 
        minimum, the paid-up, worldwide right in the government to 
        reproduce, prepare derivative works, and to distribute to other 
        United States agencies and their contractors for government 
        purposes;
            ``(3) waive, subject to reservation by the Government of a 
        nonexclusive, irrevocable, paid-up license to practice the 
        invention and exercise all rights under any copyright or have 
        the invention practiced and all rights under any copyright 
        exercised throughout the world by or on behalf of the 
        Government, in advance, in whole or in part, any right of 
        ownership which the Federal Government may have to any subject 
        invention made or copyrighted work prepared under the agreement 
        by a collaborating party or employee of a collaborating party; 
        provided in agreements having as a primary purpose the 
        research, development or utilization of products or services 
        for the commercial market, agencies may limit the retained 
        government license under any copyright for a computer program, 
        reserving, however, at a minimum, the paid-up, worldwide right 
        in the government to reproduce, prepare derivative works, and 
        to distribute to other United States agencies and their 
        contractors for government purposes;'';
            (5) by amending subsection (b)(5) to read as follows:
            ``(5) to the extent consistent with any applicable agency 
        requirements and standards of conduct, permit employees or 
        former employees of the laboratory to participate in efforts to 
        commercialize inventions they made or copyrighted works they 
        prepared while in the service of the United States, 
        notwithstanding that such employees may have received royalties 
        pursuant to section 3710c of title 15; provided, however, that 
        such inventor or author did not personally and substantially 
        participate in the selection of the collaborating party to the 
        cooperative research and development agreement or in the 
        negotiation of the licensing agreement. A Government-owned, 
        contractor-operated laboratory that enters into a cooperative 
        research and development agreement under subsection (a)(1) of 
        this section may use or obligate royalties or other income 
        accruing to such laboratory under such agreement with respect 
        to any invention or copyrighted work only (i) for payments to 
        inventors and authors; (ii) for the purposes described in 
        section 3710(a)(1)(B) (i), (ii), and (iv) of this title; and 
        (iii) for scientific research and development consistent with 
        the research and development missions and objectives of the 
        laboratory.'';
            (6) in subsection (d), by striking out ``Definitions.--As 
        used in this section--'' and inserting in lieu thereof:
    ``(d) Definitions.--As used in sections 12, 13, 14, and 15 of the 
Stevenson-Wydler Technology Innovation Act of 1980, (15 U.S.C. 3710a, 
3710b, 3710c, and 3710d)--''
            (7) in subsection (d), by adding at the end the following 
        new paragraphs:
            ``(5) the term `Computer Program' means a computer program 
        as defined in section 101 of title 17, United States Code and 
        includes instructions necessary to use the program, but does 
        not include data, data bases, data base retrieval programs or 
        other programs which directly support the dissemination of 
        Government information; and
            ``(6) the term `Author' includes a Federal officer or 
        employee who has prepared a copyrighted work as part of that 
        person's official duties as a work made for hire and any person 
        who has assigned his or her rights in a copyright to the United 
        States.'';
            (8) by adding at the end the following new subsection:
    ``(h) Copyright of Computer Programs.--Each Federal agency may 
claim copyright on behalf of the United States as owner in any computer 
program prepared by employees of the United States Government in the 
course of work under, or related to, a cooperative research and 
development agreement entered into under the authority of subsection 
(a)(1) of this section, or under any other equivalent authority and may 
grant or agree to grant in advance to a collaborating party, licenses 
or assignments for such copyrights, or options thereto, retaining a 
nonexclusive, nontransferable, irrevocable, paid-up license to exercise 
all rights under any copyright for computer program throughout the 
world by or on behalf of the Government and such other rights as the 
Federal agency deems appropriate; provided in agreements having as a 
primary purpose the research, development or utilization of products or 
services for the commercial market, agencies may limit the retained 
Government license under any copyright for a computer program, 
reserving, however, at a minimum, the paid-up, worldwide right in the 
Government to reproduce, prepare derivative works, and to distribute to 
other United States agencies and their contractors for government 
purposes.''.
    (b) Distribution of Royalties Received by Federal Agencies.--
Section 14 of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3710c) is amended to read as follows:

``SEC. 1354. DISTRIBUTION OF ROYALTIES RECEIVED BY FEDERAL AGENCIES.

    ``(a) In General.--(1) Except as provided in paragraphs (2) and 
(4), royalties or other income received by a Federal agency from the 
licensing or assignment of inventions or copyrights under agreements 
entered into by Government-operated Federal laboratories under section 
12 of this Act, and inventions or copyrights of Government-operated 
Federal laboratories licensed under section 207 of title 35, United 
States Code, or under any other provision of law, shall be retained by 
the agency whose laboratory produced the invention or copyrighted work 
and shall be disposed of as follows:
            ``(A)(i) The head of the agency shall pay at least 15 
        percent of the royalties or other income the agency receives on 
        account of any invention or copyright to the inventor or the 
        author (or co-inventors or co-authors) if the inventor or 
        author (or each such co-inventor or co-author) has assigned his 
        or her rights in the invention or copyrighted work to the 
        United States or, in the case of a copyrighted work, if the 
        work was made for hire by an officer or employee of the United 
        States Government.
            ``(ii) An agency may promulgate, in accordance with section 
        553 of title 5, United States Code, regulations providing for 
        an alternative program for sharing royalties with inventors or 
        authors under clause (i). Such regulations must--
                    ``(I) guarantee a fixed minimum payment to each 
                such inventor or author each year that the agency 
                receives royalties from that inventor's invention or 
                author's copyrighted work;
                    ``(II) provide a percentage royalty share to each 
                such inventor or author, each year that the agency 
                receives royalties from that inventor's invention or 
                author's copyrighted work in excess of a threshold 
                amount;
                    ``(III) provide that total payments to all such 
                inventors or authors shall equal at least 15 percent of 
                total agency royalties in any given fiscal year; and
                    ``(IV) provide appropriate incentives from 
                royalties for those laboratory employees who contribute 
                substantially to the technical development of a 
                licensed invention or copyrighted work between the time 
                of the filing of the patent application and the 
                licensing of the invention or copyrighted work.
            ``(iii) An agency that has published its intention to 
        promulgate regulations under clause (ii) may elect not to pay 
        inventors or authors under clause (i) until the expiration of 
        two years after October 20, 1986, or until the date of the 
        promulgation of such regulations, whichever is earlier. If an 
        agency makes such an election and after two years the 
        regulations have not been promulgated, the agency shall make 
        payments (in accordance with clause (i)) of at least 15 percent 
        of the royalties involved, retroactive to October 20, 1986. If 
        promulgation of the regulations occurs within two years after 
        October 20, 1986, payments shall be made in accordance with 
        such regulations, retroactive to October 20, 1986. The agency 
        shall retain its royalties until the inventor's or author's 
        portion is paid under either clause (i) or (ii). Such royalties 
        shall not be transferred to the agency's Government-operated 
        laboratories under subparagraph (B) and shall not revert to the 
        Treasury pursuant to paragraph (2) as a result of any delay 
        caused by rule making under this subparagraph.
            ``(B) The balance of the royalties or other income shall be 
        transferred by the agency to its Government-operated 
        laboratories, with the majority share of the royalties or other 
        income from any invention or copyright going to the laboratory 
        where the invention occurred or copyrighted work was prepared; 
        and the funds so transferred to any such laboratory may be used 
or obligated by that laboratory during the fiscal year in which they 
are received or during the succeeding fiscal year--
            ``(i) for payment of expenses incidental to the 
        administration and licensing of inventions or copyrights by 
        that laboratory or by the agency with respect to inventions 
        which occurred or copyrighted work prepared at that laboratory, 
        including the fees or other costs for the services of other 
        agencies, persons, or organizations for invention or copyright 
        management and licensing services;
            ``(ii) to reward scientific, engineering, and technical 
        employees of that laboratory, including payments to inventors 
        and developers of sensitive or classified technology, 
        regardless of whether the technology has commercial 
        applications; and
            ``(iii) to further scientific exchange among the 
        Government-operated laboratories of the agency; or
            ``(iv) for education and training of employees consistent 
        with the research and development mission and objectives of the 
        agency, and for other activities that increase the licensing 
        potential for transfer of the technology of the laboratories of 
        the agency. Any of such funds not so sued or obligated by the 
        end of the fiscal year succeeding the fiscal year in which they 
        are received shall be paid into the Treasury of the United 
        States.
    ``(2) If, after payments to inventors or authors under paragraph 
(1), the royalties received by an agency in any fiscal year exceed 5 
percent of the budget of the Government-operated laboratories of the 
agency for that year, 75 percent of such excess shall be paid to the 
Treasury of the United States and the remaining 25 percent may be used 
or obligated for the purposes described in clauses (i) and (ii) of 
paragraph (1)(B) during that fiscal year or the succeeding fiscal year. 
Any funds not so obligated shall be paid into the Treasury of the 
United States.
    ``(3) Any payment made to an employee under this section shall be 
in addition to the regular pay of the employee and to any other awards 
made to the employee, and shall not affect the entitlement of the 
employee to any regular pay, annuity, or award to which he is otherwise 
entitled or for which he is otherwise eligible or limit the amount 
thereof. Any payment made to an inventor or author as such shall 
continue after the inventor or author leaves the laboratory or agency. 
Payments made under this section shall not exceed $100,000 per year to 
any one person, unless the President approves a larger award (with the 
excess over $100,000 being treated as a Presidential award under 
section 4504 of title 5, United States Code).
    ``(4) A Federal agency receiving royalties or other income as a 
result of invention, or copyright, management services performed for 
another Federal agency or laboratory under section 207 of title 35, 
United States Code, may retain such royalties or income to the extent 
required to offset the payment of royalties to inventors or authors 
under clause (i) of paragraph (1)(A), costs and expenses incurred under 
clause (i) of paragraph (1)(B), and the cost of foreign patenting or 
copyrighting and maintenance for any invention or copyright of the 
other agency. All royalties and other income remaining after payment of 
the royalties, costs, and expenses described in the preceding sentence 
shall be transferred to the agency for which the services were 
performed, for distribution in accordance with clauses (i) and (ii) of 
paragraph (1)(B).
    ``(b) Certain Assignments.--If the invention or copyright involved 
was one assigned to the Federal agency--
            ``(1) by a contractor, grantee, or participant in a 
        cooperative agreement with the agency; or
            ``(2) by an employee of the agency who was not working in 
        the laboratory at the time the invention was made or 
        copyrightable work prepared, the agency unit that was involved 
        in such assignment shall be considered to be a laboratory for 
        purposes of this section.
    ``(c) Reports.--In making their annual budget submissions Federal 
agencies shall submit, to the appropriate authorization and 
appropriation committees of both Houses of Congress, summaries of the 
amount of royalties or other income received and expenditures made 
(including inventor or author awards) under this section.''.

SEC. 6102. EMPLOYEE ACTIVITIES.

    Section 15 of the Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3710d) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d) respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Rights to Computer Programs Prepared By Government 
Employees.--(1) A computer program prepared by an officer or employee 
of the United State Government as part of that person's official duties 
shall be a `work made for hire' as defined in subparagraph (1) of 
section 101 of title 17, United States Code, and the United States 
Government shall obtain all rights, title, and interest therein as 
`author' in accordance with section 201(b) of title 17, United States 
Code, unless otherwise provided in paragraph (2).
    ``(2) If a Federal agency has the right of ownership to a computer 
program for which the agency does not intend to copyright or otherwise 
promote the commercialization of such computer program, the agency may 
agree to allow the author to acquire title to copyright, subject to the 
reservation of a nonexclusive, nontransferable, irrevocable, paid-up 
license to exercise all rights under the copyright by or on behalf of 
the Government throughout the world, as such other reservations deemed 
necessary to assure distribution and utilization of the computer 
program.''.

SEC. 6103. EXCEPTION TO PROHIBITION ON COPYRIGHT PROTECTION FOR WORKS 
              OF THE UNITED STATES GOVERNMENT.

    Section 105 of title 17, United States Code, is amended to read as 
follows:
``Sec. 105. Subject matter of copyright: United States Government works
    ``Copyright protection under this title is not available for any 
work of the United States Government, except as provided in section 12 
of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3710a), but the United States is not precluded from receiving and 
holding copyrights transferred to it by assignment, bequest, or 
otherwise.''.

SEC. 6104. PATENT RIGHTS IN INVENTIONS MADE WITH FEDERAL ASSISTANCE.

    Subsection 202(c) of title 35, United States Code, is amended by 
amending paragraphs (2) and (3) to read as follows:
            ``(2) That the contractor make a written election within 
        two years after disclosure to the Federal agency (or such 
        additional time as may be approved by the Federal agency) 
        whether to retain title to a subject invention in the United 
        States and in any foreign countries; provided, that, if a 
        contractor elects to retain title in the United States, the 
        election to retain title in any foreign country may be delayed 
        until six months after filing the United States patent 
        application; and provided further, that, in any case where 
        publication, or sale, or public use has initiated the one year 
        statutory period within which a patent application must be 
        filed in the United States, the period for election may be 
        shortened by the Federal agency to a date that is not more than 
        four months prior to the end of the statutory period; and that 
        the Federal Government may, after notice to the contractor, 
        receive title to any subject invention in which the contractor 
        does not elect to retain title.
            ``(3) That a contractor agrees to file a patent application 
        on a subject invention in--
                    ``(A) the United States within one year after the 
                written election to retain title in the United States 
                (or such additional time as may be approved by the 
                Federal agency), but, in any event, prior to any 
                statutory bar, and that the Federal Government may, 
                after notice to the contractor, receive title to any 
                subject invention on which a patent application has not 
                been filed within the above required time period; and
                    ``(B) each elected foreign country, or to file an 
                international application, within four months after the 
                written election to retain title in the foreign 
                country, but, in any event, prior to any bar due to 
                publication, public use or sale of the invention, (or 
                such additional time as may be approved by the Federal 
                agency), and that the Federal Government may, after 
                notice to the contractor, receive title to any subject 
                invention on which a foreign patent or international 
                application has not been filed within the above 
                required time period.''.

            TITLE VII--SMALL BUSINESS AND SOCIOECONOMIC LAWS

                    Subtitle A--Small Business Laws

SEC. 7001. DIRECT CONTRACTING WITH SECTION 8(A) COMPANIES.

    Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is 
amended--
            (1) in paragraph (1), by adding at the end the following 
        new subparagraph:
                    ``(E) to delegate to any department, agency, or 
                officer thereof having procurement powers any of the 
                authorities contained in this subsection so that an 
                award or a contract can be made by the procurement 
                officer directly to an eligible Program participant. 
                Such delegation may be made generally to specific 
                departments, agencies, or officers or may be made on a 
                case-by-case basis in the discretion of the 
                Administration. Any such delegation may be revoked by 
                the Administrator, except that any revocation shall not 
                be effective as to any procurement where a solicitation 
                has been issued prior to the revocation.''; and
            (2) by amending paragraph (3)(A) to read as follows:
                    ``(A) Any Program participant selected to perform a 
                contract to be let noncompetitively pursuant to this 
                subsection shall, when practicable, participate in any 
                negotiation of the terms and conditions of such 
                contract. When authority has been delegated to a 
                department or agency, the Administration may also 
                participate in any negotiation of the terms and 
                conditions of a contract when requested to participate 
                by either the Program participant or the procurement 
                officer.''.

SEC. 7002. SMALL BUSINESS SUBCONTRACTING PLANS.

    Section 8 of the Small Business Act, Public Law 85-536, 72 Stat. 
395, as amended (15 U.S.C. 637), is amended--
            (1) in subsection (c) by deleting ``[Reserved].'' and 
        inserting the following in lieu thereof:
    ``(c) Provision of Utility Services under Tariff without entering 
into Contracts; Small business subcontracting plans. It is the policy 
of the United States that small business concerns, small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals and small business concerns owned and 
controlled by women shall have a maximum practicable opportunity to 
participate in the provision of public utility services to Federal 
agencies under section 210(a)(19) of the Federal Property and 
Administrative Services Act of 1949. Any public utility that provides 
utility services in excess of $500,000 to the Federal Government in a 
twelve month period shall, within 60 days thereafter, submit a small 
business subcontracting plan to the agency receiving the service for 
approval. If multiple agencies are receiving service, the plans shall 
be submitted to the General Services Administration. The plan shall 
include the same basic elements as required by subsection (d)(6).''; 
and
            (2) by inserting, at the end of subsection 8(d)(7), the 
        following: ``or to State or local governments acting as 
        contractors if the state or local government provides a 
        description of its own similar program and the contracting 
        officer makes a determination, after consultation with the 
        Administration, that the State or local program serves the same 
        purpose as the Federal plan outlined in paragraph (6)''.

SEC. 7003. REPORTING REQUIREMENT ON NUMBER OF SMALL BUSINESS 
              SUBCONTRACT AWARDS.

    Section 15 of the Small Business Act (15 U.S.C. 644) is amended in 
subsection (h)(2)--
            (1) by striking out ``number and'' in paragraph (E); and
            (2) by amending paragraph (F) to read as follows:
                  ``(F) The number and dollar value of prime contracts 
                and the dollar value of subcontracts awarded to small 
                business concerns owned and controlled by women.''.

SEC. 7004. REPEAL OF SMALL BUSINESS COMPETITIVENESS DEMONSTRATION 
              PROGRAM.

    (a) Repeal.--The Small Business Competitiveness Demonstration 
Program Act of 1988, as amended (15 U.S.C. 644 note) is repealed.
    (b) Conforming Amendment.--Section 15 of the Small Business Act (15 
U.S.C. 644) is amended--
            (1) by redesignating subsection 15(a) as 15(a)(1);
            (2) by adding to subsection 15(a) the following new 
        paragraph:
    ``(2) Each contract opportunity in construction, refuse and related 
services, and non-nuclear ship repair that has an anticipated value 
greater than the simplified acquisition threshold shall be solicited on 
an unrestricted basis. If an agency fails to attain at least a 40 
percent small business participation rate in the above industries, 
subsequent contract opportunities should be solicited through a 
competition restricted to eligible small business concerns pursuant to 
section 15(a) of the Small Business Act (15 U.S.C. 644(a)) to the 
extent necessary for such agency to attain the above rate. Nothing in 
this paragraph shall be construed as precluding an award of a contract 
under the authority of subsection 8(a) of this Act, section 2323 of 
title 10, United States Code, or section 7102 of the Federal 
Acquisition Streamlining Act of 1994.''.
          (3) by striking out the words, ``section 712 of the Business 
        Opportunity Development Reform Act of 1988 (Public Law 100-656; 
        15 U.S.C. 644 note)'' in subsection (j)(3).

SEC. 7005. REPEAL OF PROGRAM FOR MANUFACTURING CONTRACTS THROUGH 
              MANUFACTURING APPLICATION AND EDUCATION CENTERS.

    Section 303 of the Public Law 103-403 is repealed.

SEC. 7006. REPEAL OF PILOT PROGRAM FOR VERY SMALL BUSINESS CONCERNS.

    Section 304 of Public Law 103-403 is repealed.

                     Subtitle B--Socioeconomic Laws

SEC. 7101. REPEAL OF WALSH-HEALEY PUBLIC CONTRACTS ACT.

    The Act of June 30, 1936 (41 U.S.C. 35 through 45), commonly known 
as the Walsh-Healey Act, is repealed.

SEC. 7102. PROCUREMENT REPORT--RESOURCE CONSERVATION AND RECOVERY ACT.

    Section 6002(g) of the Resource Conservation and Recovery Act (42 
U.S.C. 6962(g)) is amended--
            (1) in the second sentence by inserting a period after 
        ``resources'' and striking all that follows; and
            (2) by inserting the following new third sentence: ``Every 
        two years beginning in 1996, the Administrator shall report to 
        Congress on actions taken by Federal agencies and the progress 
        made in the implementation of this section, including 
        compliance with subsection (d) of this section.''.

SEC. 7103. REQUIREMENTS FOR CERTIFICATION AND VERIFICATION.

    Section 6962 of title 42, United States Code (42 U.S.C. 6962), is 
amended--
            (1) by striking subparagraph (3) of paragraph (c) in its 
        entirety; and
            (2) by adding ``and'' at the end of paragraph (B), in 
        subsection (i)(2), striking paragraph (C) in its entirety, and 
        redesignating paragraph (D) as paragraph (C).

                TITLE VIII--DEFENSE INTERNATIONAL TRADE

SEC. 8001. COMPETITIVENESS OF UNITED STATES COMPANIES.

    Section 2761 of title 22, United States Code, is amended--
            (a) by adding the word ``and'' to the end of subparagraph 
        (e)(1)(A);
            (b) by striking out subparagraph (e)(1)(B) in its entirety;
            (c) by redesignating the existing subparagraph (e)(1)(C) as 
        (e)(1)(B);
            (d) by striking out paragraph (e)(2) in its entirety; and
            (e) by redesignating the existing paragraph (e)(3) as 
        (e)(2).
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