[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1670 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1670

     To revise and streamline the acquisition laws of the Federal 
    Government, to reorganize the mechanisms for resolving Federal 
             procurement disputes, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 1995

Mr. Clinger (for himself, Mr. Spence, Mr. Horn, Mr. Zeliff, Mr. Blute, 
  Mr. Davis, Mr. Scarborough, Mr. Lewis of California, Mr. Tate, Mr. 
   Tiahrt, Mr. Flanagan, Mr. Bass, and Mr. Chambliss) introduced the 
   following bill; which was referred to the Committee on Government 
  Reform and Oversight, and in addition to the Committees on National 
Security and the Judiciary, 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, to reorganize the mechanisms for resolving Federal 
             procurement disputes, 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 Reform Act of 
1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                          TITLE I--COMPETITION

Sec. 101. Improvement of competition requirements.
Sec. 102. Definition relating to competition requirements.
Sec. 103. Contract solicitation amendments.
Sec. 104. Preaward debriefings.
Sec. 105. Contract types.
Sec. 106. Contractor performance.
                       TITLE II--COMMERCIAL ITEMS

Sec. 201. Commercial item exception to requirement for cost or pricing 
                            data and information limitations.
Sec. 202. Application of simplified procedures to commercial items.
Sec. 203. Amendment to definition of commercial items.
Sec. 204. Inapplicability of cost accounting standards to contracts and 
                            subcontracts for commercial items. 
                TITLE III--ADDITIONAL REFORM PROVISIONS

Sec. 301. Government reliance on the private sector.
Sec. 302. Elimination of certain certification requirements.
Sec. 303. Amendment to commencement and expiration of authority to 
                            conduct certain tests of procurement 
                            procedures.
Sec. 304. International competitiveness.
Sec. 305. Procurement integrity.
Sec. 306. Further acquisition streamlining provisions.
              TITLE IV--STREAMLINING OF DISPUTE RESOLUTION

                     Subtitle A--General Provisions

Sec. 401. Definitions.
   Subtitle B--Establishment of the United States Board of Contract 
                                Appeals

Sec. 411. Establishment.
Sec. 412. Membership.
Sec. 413. Chairman.
Sec. 414. Rulemaking authority.
Sec. 415. Litigation authority.
Sec. 416. Seal of Board.
Sec. 417. Authorization of appropriations.
    Subtitle C--Functions of United States Board of Contract Appeals

Sec. 421. Alternative dispute resolution services.
Sec. 422. Alternative dispute resolution of disputes and protests 
                            submitted to Board.
Sec. 423. Contract disputes.
Sec. 424. Protests.
Sec. 425. Applicability to contracts for commercial items.
    Subtitle D--Repeal of Other Statutes Authorizing Administrative 
                                Protests

Sec. 431. Repeals.
    Subtitle E--Transfers and Transitional, Savings, and Conforming 
                               Provisions

Sec. 441. Transfer and allocation of appropriations and personnel.
Sec. 442. Terminations and savings provisions.
Sec. 443. Contract dispute authority of Board.
Sec. 444. References to agency boards of contract appeals.
Sec. 445. Conforming amendments.
       Subtitle F--Effective Date; Interim Appointment and Rules

Sec. 451. Effective date.
Sec. 452. Interim appointment.
Sec. 453. Interim rules.
              TITLE V--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 501. Effective date and applicability.
Sec. 502. Implementing regulations.
                          TITLE I--COMPETITION

SEC. 101. IMPROVEMENT OF COMPETITION REQUIREMENTS.

    (a) Armed Services Acquisitions.--(1) Section 2304 of title 10, 
United States Code, is amended to read as follows:
``Sec. 2304. Contracts: competition requirements
    ``(a) Maximum Practicable Competition.--Except as provided in 
subsections (b), (c), and (e) and except in the case of procurement 
procedures otherwise expressly authorized by statute, the head of an 
agency in conducting a procurement for property or services--
            ``(1) shall obtain maximum practicable competition through 
        the use of competitive procedures consistent with the need to 
        efficiently fulfill the Government's requirements in accordance 
        with this chapter and the Federal Acquisition Regulation; and
            ``(2) shall use the competitive procedure or combination of 
        competitive procedures that is best suited under the 
        circumstances of the procurement.
    ``(b) Exclusion of Particular Source.--The head of an agency may 
provide for the procurement of property or services covered by this 
chapter using competitive procedures but excluding a particular source 
in order to establish or maintain an alternative source or sources of 
supply for that property or service. The Federal Acquisition Regulation 
shall set forth the circumstances under which a particular source may 
be excluded pursuant to this subsection.
    ``(c) Exclusion of Concerns Other Than Small Business Concerns and 
Certain Other Entities.--The head of an agency may provide for the 
procurement of property or services covered by this section using 
competitive procedures, but excluding concerns other than small 
business concerns in furtherance of sections 9 and 15 of the Small 
Business Act (15 U.S.C. 638, 644) and concerns other than small 
business concerns, historically Black colleges and universities, and 
minority institutions in furtherance of section 2323 of this title.
    ``(d) Procedures Other Than Competitive Procedures.--Procedures 
other than competitive procedures may be used for purchasing property 
and services only when the use of competitive procedures is not 
feasible or appropriate. Each procurement using procedures other than 
competitive procedures (other than a procurement for commercial items 
or a procurement in an amount not greater than the simplified 
acquisition threshold) shall be justified in writing and approved in 
accordance with the Federal Acquisition Regulation.
    ``(e) Simplified Procedures.--(1) In order to promote efficiency 
and economy in contracting and to avoid unnecessary burdens for 
agencies and contractors, the Federal Acquisition Regulation shall 
provide for special simplified procedures for purchases of property and 
services for amounts not greater than the simplified acquisition 
threshold.
    ``(2) A proposed purchase or contract for an amount above the 
simplified acquisition threshold may not be divided into several 
purchases or contracts for lesser amounts in order to use the 
simplified procedures required by paragraph (1).
    ``(3) In using simplified procedures, the head of an agency shall 
ensure that competition is obtained to the extent practicable 
consistent with the particular Government requirement.
    ``(f) Certain Contracts.--For the purposes of the following laws, 
purchases or contracts awarded after using procedures other than 
sealed-bid procedures shall be treated as if they were made with 
sealed-bid procedures:
            ``(1) The Walsh-Healey Act (41 U.S.C. 35-45).
            ``(2) The Act entitled ``An Act relating to the rate of 
        wages for laborers and mechanics employed on public buildings 
        of the United States and the District of Columbia by 
        contractors and subcontractors, and for other purposes'', 
        approved March 3, 1931 (commonly referred to as the ``Davis-
        Bacon Act'') (40 U.S.C. 276a-276a-5).''.
    (2) Chapter 137 of title 10, United States Code, is amended by 
inserting before section 2305 a new section--
            (A) the designation and heading for which is as follows:
``Sec. 2304f. Merit-based selection'';
        and
            (B) the text of which consists of subsection (j) of section 
        2304 of such title, as in effect on the day before the date of 
        the enactment of this Act, modified--
                    (i) by striking out the subsection designation and 
                the subsection heading;
                    (ii) in paragraphs (2)(A), (3), and (4), by 
                striking out ``subsection'' and inserting in lieu 
                thereof ``section'' each place it appears;
                    (iii) in paragraph (2)(C), by striking out 
                ``paragraph (1)'' and inserting in lieu thereof 
                ``subsection (a)'';
                    (iv) by redesignating paragraphs (1), (2), (3), and 
                (4) as subsections (a), (b), (c), and (d), 
                respectively; and
                    (v) in subsection (b) (as so redesignated), by 
                redesignating subparagraphs (A), (B), and
            (C) as paragraphs (1), (2), and (3), respectively.
    (3) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 2305 the 
following new item:

``2304f. Merit-based selection.''.
    (b) Civilian Agency Acquisitions.--(1) Section 303 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253) is 
amended to read as follows:

``SEC. 303. CONTRACTS: COMPETITION REQUIREMENTS.

    ``(a) Maximum Practicable Competition.--Except as provided in 
subsections (b), (c), and (e) and except in the case of procurement 
procedures otherwise expressly authorized by statute, an executive 
agency in conducting a procurement for property or services--
            ``(1) shall obtain maximum practicable competition through 
        the use of competitive procedures consistent with the need to 
        efficiently fulfill the Government's requirements in accordance 
        with this chapter and the Federal Acquisition Regulation; and
            ``(2) shall use the competitive procedure or combination of 
        competitive procedures that is best suited under the 
        circumstances of the procurement.
    ``(b) Exclusion of Particular Source.--An executive agency may 
provide for the procurement of property or services covered by this 
chapter using competitive procedures but excluding a particular source 
in order to establish or maintain an alternative source or sources of 
supply for that property or service. The Federal Acquisition Regulation 
shall set forth the circumstances under which a particular source may 
be excluded pursuant to this subsection.
    ``(c) Exclusion of Concerns Other Than Small Business Concerns and 
Certain Other Entities.--An executive agency may provide for the 
procurement of property or services covered by this section using 
competitive procedures, but excluding concerns other than small 
business concerns in furtherance of sections 9 and 15 of the Small 
Business Act (15 U.S.C. 638, 644) and concerns other than small 
business concerns, historically Black colleges and universities, and 
minority institutions in furtherance of section 7102 of the Federal 
Acquisition Streamlining Act of 1994 (15 U.S.C. 644 note).
    ``(d) Procedures Other Than Competitive Procedures.--Procedures 
other than competitive procedures may be used for purchasing property 
and services only when the use of competitive procedures is not 
feasible or appropriate. Each procurement using procedures other than 
competitive procedures (other than a procurement for commercial items 
or a procurement in an amount not greater than the simplified 
acquisition threshold) shall be justified in writing and approved in 
accordance with the Federal Acquisition Regulation.
    ``(e) Simplified Procedures.--(1) In order to promote efficiency 
and economy in contracting and to avoid unnecessary burdens for 
agencies and contractors, the Federal Acquisition Regulation shall 
provide for special simplified procedures for purchases of property and 
services for amounts not greater than the simplified acquisition 
threshold.
    ``(2)(A) The Administrator of General Services shall prescribe 
regulations that provide special simplified procedures for acquisitions 
of leasehold interests in real property at rental rates that do not 
exceed the simplified acquisition threshold.
    ``(B) For purposes of subparagraph (A), the rental rate or rates 
under a multiyear lease do not exceed the simplified acquisition 
threshold if the average annual amount of the rent payable for the 
period of the lease does not exceed the simplified acquisition 
threshold.
    ``(3) A proposed purchase or contract or for an amount above the 
simplified acquisition threshold may not be divided into several 
purchases or contracts for lesser amounts in order to use the 
simplified procedures required by paragraph (1).
    ``(4) In using simplified procedures, an executive agency shall 
ensure that competition is obtained to the extent practicable 
consistent with the particular Government requirement.''.
    (2) 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 a new section--
            (A) the designation and heading for which is as follows:

``SEC. 303M. MERIT-BASED SELECTION.'';

        and
            (B) the text of which consists of subsection (h) of section 
        303 of such Act, as in effect on the day before the date of the 
        enactment of this Act, modified--
                    (i) by striking out the subsection designation and 
                the subsection heading;
                    (ii) in paragraphs (2)(A), (3), and (4), by 
                striking out ``subsection'' and inserting in lieu 
                thereof ``section'' each place it appears;
                    (iii) in paragraph (2)(C), by striking out 
                ``paragraph (1)'' and inserting in lieu thereof 
                ``subsection (a)'';
                    (iv) by redesignating paragraphs (1), (2), (3), and 
                (4) as subsections (a), (b), (c), and (d), 
                respectively; and
                    (v) in subsection (b) (as so redesignated), by 
                redesignating subparagraphs (A), (B), and (C) as 
                paragraphs (1), (2), and (3), respectively.
    (3) The table of contents for the Federal Property and 
Administrative Services Act of 1949 (contained in section 1(b)) is 
amended--
            (A) by striking out the item relating to section 303 and 
        inserting in lieu thereof the following:

``Sec. 303. Contracts: competition requirements.''; and
            (B) by inserting after the item relating to section 303L 
        the following new item:

``Sec. 303M. Merit-based selection.''.
    (c) Revisions to Procurement Notice Provisions.--Section 18 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 416) is amended--
            (1) in subsection (a)--
                    (A) in subparagraph (B) of paragraph (1)--
                            (i) by striking out ``subsection (f)--'' 
                        and all that follows through the end of the 
                        subparagraph and inserting in lieu thereof 
                        ``subsection (b); and''; and
                            (ii) by inserting after ``property or 
                        services'' the following: ``for a price 
                        expected to exceed $10,000 but not to exceed 
                        $25,000'';
                    (B) by striking out paragraph (4); and
                    (C) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively; and
            (2) in subsection (b)(4)--
                    (A) by striking out ``all''; and
                    (B) by striking out ``(as appropriate) which shall 
                be considered by the agency''.
    (d) Repeal of Duplicative Provisions.--Section 8 of the Small 
Business Act (15 U.S.C. 637) is amended--
            (1) by striking out subsections (e), (f), (g), (h), and 
        (i); and
            (2) by redesignating subsection (j) as subsection (e).
    (e) Executive Agency Responsibilities.--(1) Section 16 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 414) is amended--
            (A) by striking out ``achieve'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``promote''; and
            (B) by amending paragraph (1) to read as follows:
            ``(1) to implement maximum practicable competition in the 
        procurement of property or services by the executive agency by 
        establishing policies, procedures, and practices that are 
        consistent with the need to efficiently fulfill the 
        Government's requirements;''.
    (2) Section 20 of such Act (41 U.S.C. 418) is amended in subsection 
(a)(2)(A) by striking out ``serving in a position authorized for such 
executive agency on the date of enactment of the Competition in 
Contracting Act of 1984''.

SEC. 102. DEFINITION RELATING TO COMPETITION REQUIREMENTS.

    (a) Definition.--Paragraph (6) of section 4 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403) is amended to read as 
follows:
            ``(6) The term `maximum practicable competition', when used 
        with respect to a procurement, means that a maximum number of 
        responsible or verified sources (consistent with the particular 
        Government requirement) are permitted to submit sealed bids or 
        competitive proposals on the procurement.''.
    (b) Conforming Amendments.--
            (1) Office of federal procurement policy act.--The Office 
        of Federal Procurement Policy Act is further amended--
                    (A) in section 4(5), by striking out ``full and 
                open'' and inserting ``maximum practicable''; and
                    (B) in section 20, by striking out ``full and 
                open'' and inserting in lieu thereof ``maximum 
                practicable'' each place it appears in subsection 
                (b)(1), subsection (b)(3)(A), subsection (b)(4)(C), and 
                subsection (c);
            (2) Title 10.--Title 10, United States Code, is amended--
                    (A) in section 2302(2), by striking out ``pursuant 
                to full and open competition'' and inserting in lieu 
                thereof ``using maximum practicable competition'';
                    (B) in section 2323(e)(3), by striking out ``less 
                than full and open'' and inserting in lieu thereof 
                ``procedures other than''; and
                    (C) in each of the following sections, by striking 
                out ``full and open'' and inserting in lieu thereof 
                ``maximum practicable'':
                            (i) Section 2302(3).
                            (ii) Section 2305(a)(1)(A)(i).
                            (iii) Section 2305(a)(1)(A)(iii).
                            (iv) Section 2323(i)(3)(A).
            (3) Federal property and administrative services act.--
        Title III of the Federal Property and Administrative Services 
        Act of 1949 (41 U.S.C. 251 et seq.) is amended--
                    (A) in section 309(b), by striking out ``pursuant 
                to full and open competition'' and inserting in lieu 
                thereof ``using maximum practicable competition''; and
                    (B) in each of the following sections, by striking 
                out ``full and open'' and inserting in lieu thereof 
                ``maximum practicable'':
                            (i) Section 303A(a)(1)(A).
                            (ii) Section 303A(a)(1)(C).
                            (iii) Section 304B(a)(2)(B).
                            (iv) Section 309(c)(4).
            (4) Other laws.--(A) Section 7102 of the Federal 
        Acquisition Streamlining Act of 1994 (108 Stat. 3367; 15 U.S.C. 
        644 note) is amended in subsection (a)(1)(A) by striking out 
        ``less than full and open competition'' and inserting in lieu 
        thereof ``procedures other than competitive procedures''.
            (B) Section 15(l) of the Small Business Act (15 U.S.C. 
        644(l)) is amended in paragraph (1) and in paragraph (2)(A) by 
        striking out ``full and open'' and inserting in lieu thereof 
        ``maximum practicable'' each place it appears.

SEC. 103. CONTRACT SOLICITATION AMENDMENTS.

    (a) Armed Services Acquisitions.--Section 2305 of title 10, United 
States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking out subparagraph (B); and
                    (B) by redesignating subparagraph (C) as 
                subparagraph (B) and in that subparagraph by striking 
                out ``subparagraphs (A) and (B)'' and inserting in lieu 
                thereof ``subparagraph (A)''; and
            (2) in subsection (b)(4)(A)(i), by striking out ``all'' and 
        inserting in lieu thereof ``the''.
    (b) Civilian Agency Acquisitions.--(1) Section 303A of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253a) is 
amended--
            (A) by striking out paragraph (2); and
            (B) by redesignating paragraph (3) as paragraph (2) and in 
        that paragraph by striking out ``paragraphs (1) and (2)'' and 
        inserting in lieu thereof ``paragraph (1)''.
    (2) Section 303B(d)(1)(A) of such Act (41 U.S.C. 253b) is amended 
by striking out ``all'' and inserting in lieu thereof ``the''.

SEC. 104. PREAWARD DEBRIEFINGS.

    (a) Armed Services Acquisitions.--Section 2305(b) of title 10, 
United States Code, is amended--
            (1) by striking out subparagraph (F) of paragraph (5);
            (2) by redesignating paragraph (6) as paragraph (8); and
            (3) by inserting after paragraph (5) the following new 
        paragraphs:
            ``(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 three days 
        after the date on which the excluded offeror receives notice of 
        its exclusion, a debriefing prior to award. The contracting 
        officer shall make every effort to debrief the unsuccessful 
        offeror as soon as practicable and may refuse the request for a 
        debriefing if it is not in the best interests of the Government 
        to conduct a debriefing at that time.
            ``(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 elements in the offeror's offer;
                    ``(ii) a summary of the rationale for the offeror's 
                exclusion; 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.
            ``(7) The contracting officer shall include a summary of 
        any debriefing conducted under paragraph (5) or (6) in the 
        contract file.''.
    (b) Civilian Agency Acquisitions.--Section 303B of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253b) is 
amended--
            (1) by striking out paragraph (6) of subsection (e);
            (2) by redesignating subsections (f), (g), (h), and (i) as 
        subsections (h), (i), (j), and (k), respectively; and
            (3) by inserting after subsection (e) the following new 
        subsections:
    ``(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 make every effort to debrief the unsuccessful 
offeror as soon as practicable and may refuse the request for a 
debriefing if it is not in the best interests of the Government to 
conduct a debriefing at that time.
    ``(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 
        elements in the offeror's offer;
            ``(B) a summary of the rationale for the offeror's 
        exclusion; 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.
    ``(g) The contracting officer shall include a summary of the any 
debriefing conducted under subsection (e) or (f) in the contract 
file.''.

SEC. 105. CONTRACT TYPES.

    (a) Armed Services Acquisitions.--(1) Section 2306 of title 10, 
United States Code, is amended--
            (A) by inserting before the period at the end of subsection 
        (a) the following: ``, based on market conditions, established 
        commercial practice (if any) for the product or service being 
        acquired, and sound business judgment'';
            (B) by striking out subsections (b), (d), (e), (f), and 
        (h); and
            (C) by redesignating subsection (g) as subsection (b).
    (2) The heading of such section is amended to read as follows:
``Sec. 2306. Contract types''.
    (b) Civilian Agency Acquisitions.--(1) Section 304 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254) is 
amended--
            (A) by inserting before the period at the end of the first 
        sentence of subsection (a) the following: ``, based on market 
        conditions, established commercial practice (if any) for the 
        product or service being acquired, and sound business 
        judgment''; and
            (B) by striking out ``Every contract award'' in the second 
        sentence of subsection (a) and all that follows through the end 
        of the section.
    (2) The heading of such section is amended to read as follows:
``SEC. 304. CONTRACT TYPES.''.

    (c) Conforming Repeals.--(1) Sections 4540, 7212, and 9540 of title 
10, United States Code, are repealed.
    (2) The table of sections at the beginning of chapter 433 of such 
title is amended by striking out the item relating to section 4540.
    (3) The table of sections at the beginning of chapter 631 of such 
title is amended by striking out the item relating to section 7212.
    (4) The table of sections at the beginning of chapter 933 of such 
title is amended by striking out the item relating to section 9540.
    (d) Civil Works Authority.--(1) Chapter 137 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2332. Contracts for architectural and engineering services and 
              construction design
    ``The Secretary of Defense and the Secretaries of the military 
departments may enter into contracts 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. Such contracts shall be awarded in accordance with the Brooks 
Architect-Engineers Act (40 U.S.C. 541 et seq.).''.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by adding at the end the following new item:

``2332. Contracts for architectural and engineering services and 
                            construction design.''.
    (3) Section 2855 of such title is repealed. The table of sections 
at the beginning of chapter 169 of such title is amended by striking 
out the item relating to such section.

SEC. 106. CONTRACTOR PERFORMANCE.

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

``SEC. 35. CONTRACTOR PERFORMANCE.

    ``(a) Verification Authorized.--The Federal Acquisition Regulation 
shall provide a contractor verification system for the procurement of 
particular property or services that are procured by executive agencies 
on a repetitive basis. Under the system, the head of an executive 
agency--
            ``(1) shall use competitive procedures to verify 
        contractors as eligible for contracts to furnish such property 
        or services; and
            ``(2) shall award verifications on the basis of the 
        relative efficiency and effectiveness of the business 
        practices, level of quality, and demonstrated contract 
        performance of the responding contractors with regard to the 
        particular property or services.
    ``(b) Procurement From Verified Contractors.--The Federal 
Acquisition Regulation shall provide procedures under which the head of 
an executive agency may enter into a contract for a procurement of 
property or services referred to in subsection (a) on the basis of a 
competition among contractors verified with respect to such property or 
services pursuant to that subsection.
    ``(c) Termination of Verification.--The Federal Acquisition 
Regulation shall provide procedures under which the head of an 
executive agency--
            ``(1) may provide for the termination of a verification 
        awarded a contractor under this section upon the expiration of 
        a period specified by the head of an executive agency; and
            ``(2) may revoke a verification awarded a contractor under 
        this section upon a determination that the quality of 
        performance of the contractor does not meet standards applied 
        by the head of the executive agency as of the time of the 
        revocation decision.''.
    (b) Repeals.--Section 2319 of title 10, United States Code, is 
repealed. Section 303C of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253c) is repealed.
    (c) Clerical Amendments.--(1) The table of contents for the Office 
of Federal Procurement Policy Act (contained in section 1(b)) is 
amended by adding at the end the following new item:

``Sec. 35. Contractor performance.''.
    (2) The table of sections at the beginning of chapter 137 of title 
10, United States Code, is amended by striking out the item relating to 
section 2319.
    (3) The table of contents for the Federal Property and 
Administrative Services Act of 1949 (contained in section 1(b)) is 
amended by striking out the item relating to section 303C.

                       TITLE II--COMMERCIAL ITEMS

SEC. 201. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR COST OR PRICING 
              DATA AND INFORMATION LIMITATIONS.

    (a) Armed Services Acquisitions.--(1) Subsections (b), (c), and (d) 
of section 2306a of title 10, United States Code, are amended to read 
as follows:
    ``(b) Exceptions.--
            ``(1) In general.--Submission of cost or pricing data shall 
        not be required under subsection (a) in the case of a contract, 
        a subcontract, or modification of a contract or subcontract--
                    ``(A) for which the price agreed upon is based on--
                            ``(i) adequate price competition; or
                            ``(ii) prices set by law or regulation;
                    ``(B) for the acquisition of a commercial item; or
                    ``(C) in an exceptional case when the head of the 
                procuring activity, without delegation, determines that 
                the requirements of this section may be waived and 
                justifies in writing the reasons for such 
                determination.
            ``(2) Modifications of contracts and subcontracts for 
        commercial items.--In the case of a modification of a contract 
        or subcontract for a commercial item that is not covered by the 
        exception on the submission of cost or pricing data in 
        paragraph (1)(A) or (1)(B), submission of cost or pricing data 
        shall not be required under subsection (a) if--
                    ``(A) the contract or subcontract being modified is 
                a contract or subcontract for which submission of cost 
                or pricing data may not be required by reason of 
                paragraph (1)(A) or (1)(B); and
                    ``(B) the modification would not change the 
                contract or subcontract, as the case may be, from a 
                contract or subcontract for the acquisition of a 
                commercial item to a contract or subcontract for the 
                acquisition of an item other than a commercial item.
    ``(c) Authority To Require Cost or Pricing Data on Below-Threshold 
Contracts.--(1) Subject to paragraph (2), when cost or pricing data are 
not required to be submitted by subsection (a) for a contract, 
subcontract, or modification of a contract or subcontract, such data 
may nevertheless be required to be submitted by the head of the 
procuring activity, but only if the head of the procuring activity 
determines that such data are necessary for the evaluation by the 
agency of the reasonableness of the price of the contract, subcontract, 
or modification of a contract or subcontract. In any case in which the 
head of the procuring activity requires such data to be submitted under 
this subsection, the head of the procuring activity shall justify in 
writing the reason for such requirement.
    ``(2) The head of the procuring activity may not require certified 
cost or pricing data to be submitted under this paragraph for any 
contract or subcontract, or modification of a contract or subcontract, 
covered by the exceptions in subparagraph (A) or (B) of subsection 
(b)(1).
    ``(3) The head of a procuring activity may not delegate functions 
under this paragraph.
    ``(d) Limitations on Other Information.--The Federal Acquisition 
Regulation shall include the following:
            ``(1) Provisions concerning the types of information that 
        contracting officers may consider in determining whether the 
        price of a procurement to the Government is fair and reasonable 
        when certified cost or pricing data are not required to be 
        submitted under this section, including appropriate information 
        on the prices at which the same item or similar items have 
        previously been sold that is adequate for evaluating the 
        reasonableness of the price of the proposed contract or 
        subcontract for the procurement.
            ``(2) Reasonable limitations on requests for sales data 
        relating to commercial items.
            ``(3) A requirement that a contracting officer shall, to 
        the maximum extent practicable, limit the scope of any request 
        for information relating to commercial items from an offeror to 
        only that information that is in the form regularly maintained 
        by the offeror in commercial operations.
            ``(4) A statement that any information received relating to 
        commercial items that is exempt from disclosure under section 
        552(b) of title 5 shall not be disclosed by the Federal 
        Government.''.
    (2) Section 2306a of such title is further amended--
            (A) by striking out subsection (h); and
            (B) by redesignating subsection (i) as subsection (h).
    (3) Section 2375 of title 10, United States Code, is amended by 
striking out subsection (c).
    (b) Civilian Agency Acquisitions.--(1) Subsections (b), (c), and 
(d) of section 304A of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254b) are amended to read as follows:
    ``(b) Exceptions.--
            ``(1) In general.--Submission of cost or pricing data shall 
        not be required under subsection (a) in the case of a contract, 
        a subcontract, or a modification of a contract or subcontract--
                    ``(A) for which the price agreed upon is based on--
                            ``(i) adequate price competition; or
                            ``(ii) prices set by law or regulation;
                    ``(B) for the acquisition of a commercial item; or
                    ``(C) in an exceptional case when the head of the 
                procuring activity, without delegation, determines that 
                the requirements of this section may be waived and 
                justifies in writing the reasons for such 
                determination.
            ``(2) Modifications of contracts and subcontracts for 
        commercial items.--In the case of a modification of a contract 
        or subcontract for a commercial item that is not covered by the 
        exception on the submission of cost or pricing data in 
        paragraph (1)(A) or (1)(B), submission of cost or pricing data 
        shall not be required under subsection (a) if--
                    ``(A) the contract or subcontract being modified is 
                a contract or subcontract for which submission of cost 
                or pricing data may not be required by reason of 
                paragraph (1)(A) or (1)(B); and
                    ``(B) the modification would not change the 
                contract or subcontract, as the case may be, from a 
                contract or subcontract for the acquisition of a 
                commercial item to a contract or subcontract for the 
                acquisition of an item other than a commercial item.
    ``(c) Authority To Require Cost or Pricing Data on Below-Threshold 
Contracts.--(1) Subject to paragraph (2), when cost or pricing data are 
not required to be submitted by subsection (a) for a contract, 
subcontract, or modification of a contract or subcontract, such data 
may nevertheless be required to be submitted by the head of the 
procuring activity, but only if the head of the procuring activity 
determines that such data are necessary for the evaluation by the 
agency of the reasonableness of the price of the contract, subcontract, 
or modification of a contract or subcontract. In any case in which the 
head of the procuring activity requires such data to be submitted under 
this subsection, the head of the procuring activity shall justify in 
writing the reason for such requirement.
    ``(2) The head of the procuring activity may not require certified 
cost or pricing data to be submitted under this paragraph for any 
contract or subcontract, or modification of a contract or subcontract, 
covered by the exceptions in subparagraph (A) or (B) of subsection 
(b)(1).
    ``(3) The head of a procuring activity may not delegate the 
functions under this paragraph.
    ``(d) Limitations on Other Information.--The Federal Acquisition 
Regulation shall include the following:
            ``(1) Provisions concerning the types of information that 
        contracting officers may consider in determining whether the 
        price of a procurement to the Government is fair and reasonable 
        when certified cost or pricing data are not required to be 
        submitted under this section, including appropriate information 
        on the prices at which the same item or similar items have 
        previously been sold that is adequate for evaluating the 
        reasonableness of the price of the proposed contract or 
        subcontract for the procurement.
            ``(2) Reasonable limitations on requests for sales data 
        relating to commercial items.
            ``(3) A requirement that a contracting officer shall, to 
        the maximum extent practicable, limit the scope of any request 
        for information relating to commercial items from an offeror to 
        only that information that is in the form regularly maintained 
        by the offeror in commercial operations.
            ``(4) A statement that any information received relating to 
        commercial items that is exempt from disclosure under section 
        552(b) of title 5 shall not be disclosed by the Federal 
        Government.''.
    (2) Section 304A of such Act is further amended--
            (A) by striking out subsection (h); and
            (B) by redesignating subsection (i) as subsection (h).

SEC. 202. APPLICATION OF SIMPLIFIED PROCEDURES TO COMMERCIAL ITEMS.

    (a) Armed Services Acquisitions.--Section 2304(e)(1) of title 10, 
United States Code, as added by section 101(a), is amended by inserting 
after ``special simplified procedures'' the following: ``for purchases 
of commercial items and''.
    (b) Civilian Agency Acquisitions.--Section 303(e)(1) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253), as 
added by section 101(b), is amended by inserting after ``special 
simplified procedures'' the following: ``for purchases of commercial 
items and''.
    (c) Simplified Notice.--Section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) is amended in subsection (a)(5) 
(as redesignated by section 101(d))--
            (1) by striking out ``limited''; and
            (2) by inserting before ``submission'' the following: 
        ``issuance of solicitations and the''.

SEC. 203. AMENDMENT TO DEFINITION OF COMMERCIAL ITEMS.

    Section 4(12)(F) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(12)(F)) is amended by striking out ``catalog''.

SEC. 204. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO CONTRACTS AND 
              SUBCONTRACTS FOR COMMERCIAL ITEMS.

    Subparagraph (B) of section 26(f)(2) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f)(2)) is amended--
            (1) by striking out clause (i) and inserting in lieu 
        thereof the following:
            ``(i) Contracts or subcontracts for the acquisition of 
        commercial items.''; and
            (2) by striking out clause (iii).

                TITLE III--ADDITIONAL REFORM PROVISIONS

SEC. 301. GOVERNMENT RELIANCE ON THE PRIVATE SECTOR.

    (a) Government Reliance on the Private Sector.--The Office of 
Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by 
inserting after section 16 the following new section:

``SEC. 17. GOVERNMENT RELIANCE ON THE PRIVATE SECTOR.

    ``It has been and continues to be the policy of the Federal 
Government to rely on commercial sources to supply the products and 
services the Federal Government needs.''.
    (b) Clerical Amendment.--The table of contents for the Office of 
Federal Procurement Policy Act (contained in section 1(b)) is amended 
by inserting after the item relating to section 16 the following new 
item:

``Sec. 17. Government reliance on the private sector.''.
SEC. 302. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

    (a) Elimination of Certain Statutory Certification Requirements.--
(1)(A) Section 2410 of title 10, United States Code, is amended--
            (i) in the heading, by striking out ``: certification''; 
        and
            (ii) in subsection (a)--
                    (I) in the heading, by striking out 
                ``Certification'';
                    (II) by striking out ``unless'' and all that 
                follows through ``that--'' and inserting in lieu 
                thereof ``unless--''; and
                    (III) in paragraph (2), by striking out ``to the 
                best of that person's knowledge and belief''.
    (B) The item relating to section 2410 in the table of sections at 
the beginning of chapter 141 of such title is amended to read as 
follows:

``Sec. 2410. Requests for equitable adjustment or other relief.''.
    (2) Section 2410b of title 10, United States Code, is amended in 
paragraph (2) by striking out ``certification and''.
    (3) Section 1352(b)(2) of title 31, United States Code, is 
amended--
            (A) by striking out subparagraph (C); and
            (B) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A).
    (4) Section 5152 of the Drug-Free Workplace Act of 1988 (41 U.S.C. 
701) is amended--
            (A) in subsection (a)(1), by striking out ``has certified 
        to the contracting agency that it will'' and inserting in lieu 
        thereof ``agrees to'';
            (B) in subsection (a)(2), by striking out ``contract 
        includes a certification by the individual'' and inserting in 
        lieu thereof ``individual agrees''; and
            (C) in subsection (b)(1)--
                    (i) by striking out subparagraph (A);
                    (ii) by redesignating subparagraph (B) as 
                subparagraph (A) and in that subparagraph by striking 
                out ``such certification by failing to carry out''; and
                    (iii) by redesignating subparagraph (C) as 
                subparagraph (B).
    (b) Elimination of Certain Regulatory Certification Requirements.--
            (1) Current certification requirements.--Not later than 210 
        days after the date of the enactment of this Act, any 
        certification required of contractors or offerors by the 
        Federal Acquisition Regulation or an executive agency 
        procurement regulation that is not specifically imposed by 
        statute shall be removed by the Administrator for Federal 
        Procurement Policy from the Federal Acquisition Regulation or 
        such agency regulation unless--
                    (A) written justification for such certification is 
                provided to the Administrator by the Federal 
                Acquisition Regulatory Council (in the case of a 
                certification in the Federal Acquisition Regulation) or 
                the head of an executive agency (in the case of a 
                certification in an executive agency procurement 
                regulation); and
                    (B) the Administrator approves in writing the 
                retention of such certification.
            (2) Future certification requirements.--(A) Section 29 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 425) is 
        amended--
                    (i) by amending the heading to read as follows:

``SEC. 22. CONTRACT CLAUSES AND CERTIFICATIONS.'';

                    (ii) by inserting ``(a) Nonstandard Contract 
                Clauses.--'' before ``The Federal Acquisition''; and
                    (iii) by adding at the end the following new 
                subsection:
    ``(b) Prohibition on Certification Requirements.--A requirement for 
a certification by a contractor or offeror may not be included in the 
Federal Acquisition Regulation or an executive agency procurement 
regulation unless--
            ``(1) the certification is specifically imposed by statute; 
        or
            ``(2) written justification for such certification is 
        provided to the Administrator for Federal Procurement Policy by 
        the Federal Acquisition Regulatory Council (in the case of a 
        certification in the Federal Acquisition Regulation) or the 
        head of an executive agency (in the case of a certification in 
        an executive agency procurement regulation), and the 
        Administrator approves in writing the inclusion of such 
        certification.''.
            (B) The item relating to section 29 in the table of 
        contents for the Office of Federal Procurement Policy Act 
        (contained in section 1(b)) (41 U.S.C. 401 note) is amended to 
        read as follows:

``Sec. 29. Contract clauses and certifications.''.
SEC. 303. AMENDMENT TO COMMENCEMENT AND EXPIRATION OF AUTHORITY TO 
              CONDUCT CERTAIN TESTS OF PROCUREMENT PROCEDURES.

    Subsection (j) of section 5061 of the Federal Acquisition 
Streamlining Act of 1994 (41 U.S.C. 413 note) is amended to read as 
follows:
    ``(j) Commencement and Expiration of Authority.--The authority to 
conduct a test under subsection (a) in an agency and to award contracts 
under such a test shall take effect on August 1, 1995, and shall expire 
on August 1, 2000. Contracts entered into before such authority expires 
in an agency pursuant to a test shall remain in effect, notwithstanding 
the expiration of the authority to conduct the test under this 
section.''.

SEC. 304. INTERNATIONAL COMPETITIVENESS.

    (a) Repeal of Provision Relating to Research, Development, and 
Production Costs.--Section 21(e) of the Arms Export Control Act (22 
U.S.C. 2761(e)) is amended--
            (1) by inserting ``and'' after the semicolon at the end of 
        paragraph (1)(A);
            (2) by striking out subparagraph (B) of paragraph (1);
            (3) by redesignating subparagraph (C) of paragraph (1) as 
        subparagraph (B);
            (4) by striking out paragraph (2); and
            (5) by redesignating paragraph (3) as paragraph (2).
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to sales agreements pursuant to sections 21 and 
22 of the Arms Export Control Act (22 U.S.C. 2761 and 2762) entered 
into on or after the date of the enactment of this Act.

SEC. 305. PROCUREMENT INTEGRITY.

    (a) Amendment of Procurement Integrity Provision.--Section 27 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 423) is amended 
to read as follows:

``SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING CONTRACTOR BID OR 
              PROPOSAL INFORMATION OR SOURCE SELECTION INFORMATION.

    ``(a) Prohibition on Disclosing Procurement Information.--(1) A 
person described in paragraph (2) shall not, other than as provided by 
law, knowingly and willfully disclose contractor bid or proposal 
information or source selection information before the award of a 
Federal agency procurement contract to which the information relates.
    ``(2) Paragraph (1) applies to any person who--
            ``(A) is 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
            ``(B) by virtue of that office, employment, or relationship 
        has or had access to contractor bid or proposal information or 
        source selection information.
    ``(b) Prohibition on Obtaining Procurement Information.--A person 
shall not, other than as provided by law, knowingly and willfully 
obtain contractor bid or proposal information or source selection 
information before the award of a Federal agency procurement contract 
to which the information relates.
    ``(c) Prohibition on Disclosing or Obtaining Procurement 
Information in Connection With a Protest.--(1) A person shall not, 
other than as provided by law, knowingly and willfully violate the 
terms of a protective order described in paragraph (2) by disclosing or 
obtaining contractor bid or proposal information or source selection 
information related to the procurement contract concerned.
    ``(2) Paragraph (1) applies to any 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.
    ``(d) Penalties and Administrative Actions.--
            ``(1) Criminal penalties.--
                    ``(A) Whoever engages in conduct constituting an 
                offense under subsection (a), (b), or (c) shall be 
                imprisoned for not more than one year or fined as 
                provided under title 18, United States Code, or both.
                    ``(B) Whoever engages in conduct constituting an 
                offense under subsection (a), (b), or (c) for the 
                purpose of either--
                            ``(i) exchanging the information covered by 
                        such subsection 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 five years or 
                fined as provided under 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.--(A) 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 taking one or more of 
        the following actions, as appropriate:
                    ``(i) Cancellation of the Federal agency 
                procurement, if a contract has not yet been awarded.
                    ``(ii) Rescission of a contract with respect to 
                which--
                            ``(I) the contractor or someone acting for 
                        the contractor has been convicted for an 
                        offense under subsection (a), (b), or (c), or
                            ``(II) the head of the agency that awarded 
                        the contract has determined, based upon clear 
                        and convincing evidence, that the contractor or 
                        someone acting for the contractor has engaged 
                        in conduct constituting such an offense.
                    ``(iii) Initiation of suspension or debarment 
                proceedings for the protection of the Government in 
                accordance with procedures in the Federal Acquisition 
                Regulation.
                    ``(iv) Initiation of adverse personnel action, 
                pursuant to the procedures in chapter 75 of title 5, 
                United States Code, or other applicable law or 
                regulation.
            ``(B) If a Federal agency rescinds a contract pursuant to 
        subparagraph (A)(ii), the United States is entitled to recover, 
        in addition to any penalty prescribed by law, the amount 
        expended under the contract.
            ``(C) For purposes of any suspension or debarment 
        proceedings initiated pursuant to subparagraph (A)(iii), 
        engaging in conduct constituting an offense under subsection 
        (a), (b), or (c) affects the present responsibility of a 
        Government contractor or subcontractor.
    ``(e) Definitions.--As used in this section:
            ``(1) The term `contractor bid or proposal information' 
        means any of 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 (as defined by section 
                2306a(i) of title 10, United States Code, with respect 
                to procurements subject to that section, and section 
                304A(i) of Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 254b(i), with respect to 
                procurements subject to that section).
                    ``(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.
                    ``(D) Information marked by the contractor as 
                `contractor bid or proposal information', in accordance 
                with applicable law or regulation.
            ``(2) The term `source selection information' means any of 
        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 before 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 that 
                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, boards, or advisory councils.
                    ``(J) Other information marked as `source selection 
                information' based on 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.
            ``(3) The term `Federal agency' has the meaning provided 
        such term in section 3 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 472).
            ``(4) The term `Federal agency procurement' means the 
        acquisition (by using competitive procedures and awarding a 
        contract) of goods or services (including construction) from 
        non-Federal sources by a Federal agency using appropriated 
        funds.
            ``(5) The term `contracting officer' means a person who, by 
        appointment in accordance with applicable regulations, has the 
        authority to enter into a Federal agency procurement contract 
        on behalf of the Government and to make determinations and 
        findings with respect to such a contract.
            ``(6) 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 title IV of the 
        Federal Acquisition Reform Act of 1995.
    ``(f) Limitation on Protests.--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 
a protest, unless that person reported to the Federal agency 
responsible for the procurement information that the person believed 
constituted evidence of the offense no later than 14 days after the 
person first discovered the possible offense.
    ``(g) Savings Provisions.--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 a Federal agency procurement after it has been 
        canceled by the Federal agency before contract award unless the 
        Federal agency plans to resume the procurement;
            ``(4) authorize the withholding of information from, nor 
        restrict its receipt by, Congress, a committee or subcommittee 
        of Congress, 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, 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; or
            ``(6) limit the applicability of any requirements, 
        sanctions, contract penalties, and remedies established under 
        any other law or regulation.''.
    (b) Repeals.--The following provisions of law are repealed:
            (1) Sections 2397, 2397a, 2397b, and 2397c of title 10, 
        United States Code.
            (2) Section 33 of the Federal Energy Administration Act of 
        1974 (15 U.S.C. 789).
            (3) Section 281 of title 18, United States Code.
            (4) Subsection (c) of section 32 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 428).
            (5) The first section 19 of the Federal Nonnuclear Energy 
        Research and Development Act of 1974 (42 U.S.C. 5918).
    (c) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 141 
        of title 10, United States Code, is amended by striking out the 
        items relating to sections 2397, 2397a, 2397b, and 2397c.
            (2) The table of sections at the beginning of chapter 15 of 
        title 18, United States Code, is amended by striking out the 
        item relating to section 281.
            (3) Section 32 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 428) is amended by redesignating subsections 
        (d), (e), (f), and (g) as subsections (c), (d), (e), and (f), 
        respectively.

SEC. 306. FURTHER ACQUISITION STREAMLINING PROVISIONS.

    (a) Purpose of Office of Federal Procurement Policy.--(1) Section 
5(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 404) is 
amended to read as follows:
    ``(a) To promote economy, efficiency, and effectiveness in the 
procurement of property and services by the executive branch of the 
Federal Government, there shall be an Office of Federal Procurement 
Policy (hereinafter referred to as the `Office') in the Office of 
Management and Budget to provide overall direction of Government-wide 
procurement policies, regulations, procedures, and forms for executive 
agencies.''.
    (2) Sections 2 and 3 of such Act (41 U.S.C. 401 and 402) are 
repealed.
    (b) Repeal of Report Requirement.--Section 8 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 407) is repealed.
    (c) Repeal of Obsolete Provisions.--(1) Sections 10 and 11 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 409 and 410) are 
repealed.
    (d) Clerical Amendments.--The table of contents for the Office of 
Federal Procurement Policy Act (contained in section 1(b)) is amended 
by striking out the items relating to sections 2, 3, 8, 10, and 11.
              TITLE IV--STREAMLINING OF DISPUTE RESOLUTION

                     Subtitle A--General Provisions

SEC. 401. DEFINITIONS.

    In this title:
            (1) The term ``Board'' means the United States Board of 
        Contract Appeals.
            (2) The term ``Board judge'' means a member of the United 
        States Board of Contract Appeals.
            (3) The term ``Chairman'' means the Chairman of the United 
        States Board of Contract Appeals.
            (4) The term ``executive agency'' has the meaning given by 
        section 2(2) of the Contract Disputes Act of 1978 (41 U.S.C. 
        601(2)).
            (5) The term ``alternative means of dispute resolution'' 
        has the meaning given by section 571(3) of title 5, United 
        States Code.
            (6) The term ``protest'' means a written objection by an 
        interested party to any of the following:
                    (A) A solicitation or other request by an executive 
                agency for offers for a contract for the procurement of 
                property or services.
                    (B) The cancellation of such a solicitation or 
                other request.
                    (C) An award or proposed award of such a contract.
                    (D) A termination or cancellation of an award of 
                such a contract, if the written objection contains an 
                allegation that the termination or cancellation is 
                based in whole or in part on improprieties concerning 
                the award of the contract.
            (7) The term ``interested party'', with respect to a 
        contract or a solicitation or other request for offers, means 
        an actual or prospective bidder or offeror whose direct 
        economic interest would be affected by the award of the 
        contract or by failure to award the contract.
            (8) The term ``prevailing party'', with respect to a 
        determination of the Board under subsection 424(b) that a 
        decision of a contracting officer violates a statute or 
        regulation, means a party that demonstrated such violation.

   Subtitle B--Establishment of the United States Board of Contract 
                                Appeals

SEC. 411. ESTABLISHMENT.

    There is established in the executive branch of the Government an 
independent establishment to be known as the United States Board of 
Contract Appeals.

SEC. 412. MEMBERSHIP.

    (a) Appointment.--(1) The Board shall consist of Board judges 
appointed by the Chairman, without regard to political affiliation and 
solely on the basis of the professional qualifications required to 
perform the duties and responsibilities of a Board judge, from a 
register of applicants maintained by the Board.
    (2) The members of the Board shall be selected and appointed to 
serve in the same manner as administrative law judges appointed 
pursuant to section 3105 of title 5, United States Code, with an 
additional requirement that such members shall have had not fewer than 
five years' experience in public contract law.
    (3) Notwithstanding paragraph (2), the following persons shall be 
considered qualified to serve as Board judges:
            (A) Any full-time member of an agency board of contract 
        appeals serving as such on the day before the effective date of 
        this title.
            (B) Any person serving on the day before the effective date 
        of this title in a position at a level of assistant general 
        counsel or higher with authority delegated from the Comptroller 
        General to decide bid protests under subchapter V of chapter 35 
        of title 31, United States Code.
    (b) Removal.--Members of the Board shall be subject to removal in 
the same manner as administrative law judges, as provided in section 
7521 of title 5, United States Code.
    (c) Compensation.--Compensation for the Chairman and all other 
members of the Board shall be determined under section 5273a of title 
5, United States Code.
SEC. 413. CHAIRMAN.

    (a) Designation.--(1) The Chairman shall be designated by the 
President to serve for a term of five years. The President shall select 
the Chairman from among sitting Board judges each of whom has had at 
least five years of service--
            (A) as a member of an agency board of contract appeals; or
            (B) in a position at a level of assistant general counsel 
        or higher with authority delegated from the Comptroller General 
        to decide bid protests under subchapter V of chapter 35 of 
        title 31, United States Code (as in effect on the day before 
        the effective date of this title).
    (2) A Chairman may continue to serve after the expiration of the 
Chairman's term until a successor has taken office. A Chairman may be 
reappointed any number of times.
    (b) Responsibilities.--The Chairman shall be responsible on behalf 
of the Board for the executive and administrative operation of the 
Board, including functions of the Board with respect to the following:
            (1) The selection, appointment, and fixing of the 
        compensation of such personnel, pursuant to part III of title 
        5, United States Code, as the Chairman considers necessary or 
        appropriate, including a Clerk of the Board, a General Counsel, 
        and clerical and legal assistance for Board judges.
            (2) The supervision of personnel employed by or assigned to 
        the Board, and the distribution of work among such personnel.
            (3) The response to any request that may be made by 
        Congress or the Office of Management and Budget.
            (4) The allocation of funds among the various functions of 
        the Board.
            (5) The entering into and performance of such contracts, 
        leases, cooperative agreements, or other similar transactions 
        with public agencies and private organizations and persons, and 
        the making of such payments, as the Chairman considers 
        necessary or appropriate to carry out functions vested in the 
        Board.
            (6) The operation of an Office of the Clerk of the Board, 
        including the receipt of all filings made with the Board, the 
        assignment of cases, and the maintenance of all records of the 
        Board.
            (7) The acquisition, operation, and maintenance of such 
        automatic data processing resources as may be needed by the 
        Board.
            (8) The prescription of such rules and regulations as the 
        Chairman considers necessary or appropriate for the 
        administration and management of the Board.
    (c) Vice Chairmen.--The Chairman may designate up to four other 
Board judges as Vice Chairmen. The Chairman may divide the Board into 
two or more divisions, and, if such division is made, shall assign a 
Vice Chairman to head each division. The Vice Chairmen, in the order 
designated by the Chairman, shall act in the place and stead of the 
Chairman during the absence of the Chairman.

SEC. 414. RULEMAKING AUTHORITY.

    (a) In General.--The Board may establish--
            (1) such procedural rules and regulations as are necessary 
        to the exercise of its functions, including internal rules for 
        the assignment of cases; and
            (2) statements of policy of general applicability with 
        respect to its functions.
    (b) Prohibition on Review by Other Agency or Person.--Rules and 
regulations established by the Board (including forms which are a part 
thereof) shall not be subject to review by any other agency or person 
(including the Administrator of Information and Regulatory Affairs,
 pursuant to chapter 35 of title 44, United States Code) in advance of 
publication.

SEC. 415. LITIGATION AUTHORITY.

    Except as provided in section 518 of title 28, United States Code, 
relating to litigation before the Supreme Court, attorneys designated 
by the Chairman may appear for, and represent the Board in, any civil 
action brought in connection with any function carried out by the 
Board.

SEC. 416. SEAL OF BOARD.

    The Chairman shall cause a seal of office to be made for the Board 
of such design as the Board shall approve. Judicial notice shall be 
taken of such seal.

SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for fiscal year 1997 and 
each succeeding fiscal year such sums as may be necessary to carry out 
the provisions of this title and to enable the Board to perform its 
functions. Funds appropriate pursuant to this section shall remain 
available until expended.

    Subtitle C--Functions of United States Board of Contract Appeals

SEC. 421. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

    (a) Requirement To Provide Services Upon Request.--The Board shall 
provide alternative means of dispute resolution for any disagreement 
regarding a contract or prospective contract upon the request of all 
parties to the disagreement.
    (b) Personnel Qualified To Act.--Each Board judge and each attorney 
employed by the Board shall be considered to be qualified to act for 
the purpose of conducting alternative means of dispute resolution under 
this section.
    (c) Services To Be Provided Without Charge.--Any services provided 
by the Board or any Board judge or employee pursuant to this section 
shall be provided without charge.
    (d) Recusal of Certain Personnel Upon Request.--In the event that a 
matter which is presented to the Board for alternative means of dispute 
resolution, pursuant to this section, later becomes the subject of 
formal proceedings before the Board, any Board judge or employee who 
was involved in the alternative means shall, if requested by any party 
to the formal proceeding, take no part in that proceeding.

SEC. 422. ALTERNATIVE DISPUTE RESOLUTION OF DISPUTES AND PROTESTS 
              SUBMITTED TO BOARD.

    With reasonable promptness after the submission to the Board of a 
contract dispute under section 423 or a bid protest under section 424, 
a Board judge to whom the contract dispute or protest is assigned shall 
request the parties to meet with a Board judge, or an attorney employed 
by the Board, for the purpose of attempting to resolve the dispute or 
protest through alternative means of dispute resolution. Formal 
proceedings in the appeal shall then be suspended until such time as 
any party or a Board judge to whom the dispute or protest is assigned 
determines that alternative means of dispute resolution are not 
appropriate for resolution of the dispute or protest.

SEC. 423. CONTRACT DISPUTES.

    The Board shall have jurisdiction as provided by section 8(a) of 
the Contract Disputes Act of 1978 (41 U.S.C. 601-613).
SEC. 424. PROTESTS.

    (a) Review Required Upon Request.--Upon request of an interested 
party in connection with any procurement conducted by any executive 
agency, the Board shall review, as provided in this section, any 
decision by a contracting officer alleged to violate a statute or 
regulation. The authority of the Board to conduct such review shall 
include the authority to review regulations to determine their 
consistency with applicable statutes. A decision or order of the Board 
pursuant to this section shall not be subject to interlocutory appeal 
or review.
    (b) Standard of Review.--In deciding a protest, the Board may 
consider all evidence that is relevant to the decision under protest. 
It shall accord a presumption of correctness to all facts found and 
determinations made by the contracting officer whose decision is being 
protested. The protester may rebut this presumption by showing, by a 
preponderance of the evidence, that a finding or determination was 
incorrect. The Board may find that a decision by a contracting officer 
violates a statute or regulation for any of the reasons stated in 
section 706(2) of title 5, United States Code.
    (c) Determination of Whether to Suspend Authority To Conduct 
Procurement in Protest Filed Before Contract Award.--(1) When a protest 
under this section is filed before the award of a contract in a 
protested procurement, the Board, at the request of an interested party 
and within 10 days after the submission of the protest, shall hold a 
hearing to determine whether the Board should suspend the authority of 
the executive agency involved (or its head) to conduct such procurement 
until the Board can decide the protest.
    (2) The Board shall suspend the authority of the executive agency 
(or its head) unless the agency concerned establishes that--
            (A) absent action by the Board, contract award is likely to 
        occur within 30 days after the hearing; and
            (B) urgent and compelling circumstances which significantly 
        affect interests of the United States will not permit waiting 
        for the decision of the Board.
    (3) A suspension under paragraph (2) shall not preclude the 
executive agency concerned from continuing the procurement process up 
to but not including award of the contract unless the Board determines 
such action is not in the best interests of the United States.
    (d) Determination of Whether To Suspend Authority To Conduct 
Procurement in Protest Filed After Contract Award.--(1) If, with 
respect to an award of a contract, the Board receives notice of a 
protest under this section within the period described in paragraph 
(2), the Board shall, at the request of an interested party, hold a 
hearing to determine whether the Board should suspend the authority of 
the executive agency involved (or its head) to conduct such procurement 
until the Board can decide the protest.
    (2) The period referred to in paragraph (1) is the period beginning 
on the date on which the contract is awarded and ending at the end of 
the later of--
            (A) the tenth day after the date of contract award; or
            (B) the fifth day after the debriefing date offered to an 
        unsuccessful offeror for any debriefing that is requested and, 
        when requested, is required.
    (3) The Board shall hold the requested hearing within 5 days after 
the date of the filing of the protest or, in the case of a request for 
debriefing, within 5 days after the later of the date of the filing of 
the protest or the date of the debriefing.
    (4) The Board shall suspend the procurement authority of the 
executive agency involved (or its head) to acquire any goods or 
services under the contract which are not previously delivered and 
accepted unless such agency establishes that urgent and compelling 
circumstances which significantly affect interests of the United States 
will not permit waiting for the decision of the Board.
    (e) Procedures.--
            (1) Proceedings and discovery.--The Board shall conduct 
        proceedings and allow such discovery as may be required for the 
        expeditious, fair, and reasonable resolution of the protest. 
        The Board shall limit discovery to material which is relevant 
        to the grounds of protest or to such affirmative defenses as 
        the executive agency involved, or any intervenor supporting the 
        agency, may raise.
            (2) Priority.--Subject to any deadlines imposed pursuant to 
        section 9(a) of the Contract Disputes Act of 1978 (41 U.S.C. 
        608(a)), the Board shall give priority over contract disputes 
        and alternative dispute services to protests filed under this 
        section. Except as provided in paragraph (3), the Board shall 
        issue its final decision within 65 days after the date of the 
        filing of the protest, unless the Chairman determines that the 
        specific and unique circumstances of the protest require a 
        longer period, in which case the Board shall issue such 
        decision within the longer period determined by the Chairman. 
        An amendment that adds a new ground of protest should be 
        resolved, to the maximum extent practicable, within the time 
        limits established for resolution of the initial protest.
            (3) Threshold.--Any protest in which the anticipated value 
        of the contract award that will result from the protested 
        procurement, as estimated by the executive agency involved, is 
        less than $1,000,000 shall be considered under simplified rules 
        of procedure. These rules shall provide that discovery in such 
        protests shall be in writing only. Such protests shall be 
        decided by a single Board judge, whose decision shall be final 
        and conclusive and shall not be set aside except in cases of 
        fraud. The Board shall issue its final decision in each such 
        protest within 35 days after the date of the filing of the 
        protest.
            (4) Calculation of time for adr.--In calculating time for 
        purposes of paragraph (2) or (3) of this subsection, any days 
        during which proceedings are suspended for the purpose of 
        attempting to resolve the protest by alternative means of 
        dispute resolution, up to a maximum of 20 days, shall not be 
        counted.
            (5) Dismissal of frivolous protests.--The Board may dismiss 
        a protest that the Board determines is frivolous or which, on 
        its face, does not state a valid basis for protest.
            (6) Payment of costs for frivolous protests.--(A) If the 
        Board expressly finds that a protest or a portion of a protest 
        is frivolous or does not state on its face a valid basis for 
        protest, the Board shall recommend that the protester or other 
        interested party who joins the protest be liable to the United 
        States for payment of the costs described in subparagraph (B) 
        unless--
                    (i) special circumstances would make such payment 
                unjust; or
                    (ii) the protester obtains documents or other 
                information after the protest is filed with the Board 
                that establishes that the protest or a portion of the 
                protest is frivolous or does not state on its face a 
                valid basis for protest, and the protester then 
                promptly withdraws the protest or portion of the 
                protest.
            (B) The costs referred to in subparagraph (A) are all of 
        the costs incurred by the United States of reviewing the 
        protest, or of reviewing that portion of the protest for which 
        the finding is made, 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.
    (f) Decisions and Corrective Actions on Protests.--(1) In making a 
decision on protests filed under this section, the Board shall accord 
due weight to the goals of economic and efficient procurement, and 
shall take due account of the rule of prejudicial error.
    (2) If the Board determines that a decision of a contracting 
officer violates a statute or regulation, the Board may order the 
agency (or its head) to take such corrective action as the Board 
considers appropriate. Corrective action includes recommending that the 
Federal agency--
            (A) refrain from exercising any of its options under the 
        contract;
            (B) recompete the contract immediately;
            (C) issue a new solicitation;
            (D) terminate the contract;
            (E) award a contract consistent with the requirements of 
        such statute and regulation;
            (F) implement any combination of recommendations under 
        subparagraphs (A), (B), (C), (D), and (E); or
            (G) implement such other recommendations as the Board 
        determines to be necessary in order to promote compliance with 
        procurement statutes and regulations.
    (3) If the Board orders corrective action after the contract award, 
the affected contract shall be presumed valid as to all goods or 
services delivered and accepted under the contract before the 
corrective action was ordered.
    (4) Any agreement that provides for the dismissal of a protest and 
involves a direct or indirect expenditure of appropriated funds shall 
be submitted to the Board and shall be made a part of the public record 
(subject to any protective order considered appropriate by the Board) 
before dismissal of the protest.
    (g) Authority To Declare Entitlement to Costs.--(1)(A) Whenever the 
Board determines that a decision of a contracting officer violates a 
statute or regulation, it may, in accordance with section 1304 of title 
31, United States Code, further declare an appropriate prevailing party 
to be entitled to the costs of--
            (i) filing and pursuing the protest, including reasonable 
        attorneys' fees and consultant and expert witness fees, and
            (ii) bid and proposal preparation.
    (B) No party (other than a small business concern (within the 
meaning of section 3(a) of the Small Business Act)) may be declared 
entitled under this paragraph to costs for--
            (i) consultants and expert witness fees that exceed the 
        highest rate of compensation for expert witnesses paid by the 
        Federal Government, or
            (ii) attorneys' fees that exceed $150 per hour unless the 
        Board, on a case by case basis, determines that an increase in 
        the cost of living or a special factor, such as the limited 
        availability of qualified attorneys for the proceedings 
        involved, justifies a higher fee.
    (2) Payment of amounts due from an agency under paragraph (1) or 
under the terms of a settlement agreement under subsection (e)(4) shall 
be made from the appropriation made by section 1304 of title 31, United 
States Code, for the payment of judgments. The executive agency 
concerned shall reimburse that appropriation account out of funds 
available for the procurement.
    (h) Appeals.--The final decision of the Board may be appealed as 
set forth in section 8(d)(1) of the Contract Disputes Act of 1978 by 
the head of the executive agency concerned and by any interested party, 
including interested parties who intervene in any protest filed under 
this section.
    (i) Additional Relief.--Nothing contained in this section shall 
affect the power of the Board to order any additional relief which it 
is authorized to provide under any statute or regulation.
    (j) Nonexclusivity of Remedies.--Nothing contained in this section 
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 or in a United States district court.
SEC. 425. APPLICABILITY TO CONTRACTS FOR COMMERCIAL ITEMS.

    Notwithstanding section 34 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 430), the authority conferred on the Board by 
this title is applicable to contracts for the procurement of commercial 
items.

    Subtitle D--Repeal of Other Statutes Authorizing Administrative 
                                Protests

SEC. 431. REPEALS.

    (a) GSBCA Provisions.--Subsection (f) of the Brooks Automatic Data 
Processing Act (section 111 of the Federal Property and Administrative 
Services Act of 1949; 40 U.S.C. 759) is repealed.
    (b) GAO Provisions.--Subchapter V of chapter 35 of title 31, United 
States Code (31 U.S.C. 3551-3556) is repealed.

    Subtitle E--Transfers and Transitional, Savings, and Conforming 
                               Provisions

SEC. 441. TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL.

    (a) Transfer.--The personnel employed in connection with, and the 
assets, liabilities, contracts, property, records, and unexpended 
balance of appropriations, authorizations, allocations, and other funds 
employed, held, used, arising from, available to, or to be made 
available in connection with the functions vested by law in the 
Comptroller General pursuant to subchapter V of chapter 35 of title 31, 
United States Code, and in the boards of contract appeals established 
pursuant to section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 
607) (as in effect on the day before the effective date of this Act), 
shall be transferred to the Board for appropriate allocation by the 
Chairman.
    (b) Effect on Personnel.--Personnel transferred pursuant to this 
title shall not be separated or reduced in classification or 
compensation for one year after such transfer, except for cause.
    (c) Regulations.--(1) The Board shall prescribe regulations for the 
release of competing employees in a reduction in force that gives due 
effect to--
            (A) efficiency or performance ratings;
            (B) military preference; and
            (C) tenure of employment.
    (2) In prescribing the regulations, the Board shall provide for 
military preference in the same manner as set forth in subchapter I of 
chapter 35 of title 5, United States Code.

SEC. 442. TERMINATIONS AND SAVINGS PROVISIONS.

    (a) Termination of Boards of Contract Appeals.--On the effective 
date of this title, the boards of contract appeals established pursuant 
to section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607) (as 
in effect on the day before the effective date of this Act) shall 
terminate.
    (b) Savings Provision for Contract Dispute Matters Pending Before 
Boards.--The provisions of this title shall not affect any proceedings 
(other than bid protests pending before the board of contract appeals 
of the General Services Administration) pending on the effective date 
of this Act before any board of contract appeals described in 
subsection (a). Such proceedings shall be continued by the Board, and 
orders which were issued in any such proceeding by any board of 
contract appeals shall continue in effect until modified, terminated, 
superseded, or revoked by the Board, by a court of competent 
jurisdiction, or by operation of law.
    (c) Bid Protest Transition Provisions.--(1) No protest may be 
submitted to the Comptroller General pursuant to section 3553(a) of 
title 31, United States Code, or to the board of contract appeals for 
the General Services Administration pursuant to the Brooks Automatic 
Data Processing Act (40 U.S.C. 759) on or after the effective date of 
this Act.
    (2) The provisions repealed by section 401 shall continue to apply 
to proceedings pending on the effective date of this title before the 
board of contract appeals of the General Services Administration and 
the Comptroller General pursuant to those provisions, until the board 
or the Comptroller General determines such proceedings have been 
completed.

SEC. 443. CONTRACT DISPUTE AUTHORITY OF BOARD.

    (a) Section 2 of the Contract Disputes Act of 1978 (41 U.S.C. 601) 
is amended by striking out paragraph (6) and inserting in lieu thereof 
the following:
            ``(6) the term `Board' means the United States Board of 
        Contract Appeals; and''.
    (b) Section 6(c) of the Contract Disputes Act of 1978 (41 U.S.C. 
605(c)) is amended--
            (1) in paragraph (4)--
                    (A) by striking out ``the agency board of contract 
                appeals'' and inserting in lieu thereof ``the United 
                States Board of Contract Appeals''; and
                    (B) by striking out ``the board'' and inserting in 
                lieu thereof ``the Board''; and
            (2) in paragraph (6)--
                    (A) by striking out ``an agency board of contract 
                appeals'' and inserting in lieu thereof ``the United 
                States Board of Contract Appeals''; and
                    (B) by striking out ``agency board'' and inserting 
                in lieu thereof ``the Board''.
    (c) Section 7 of the Contract Disputes Act of 1978 (41 U.S.C. 606) 
is amended by striking out ``an agency board of contract appeals'' and 
inserting in lieu thereof ``the United States Board of Contract 
Appeals''.
    (d) Section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607) 
is amended--
            (1) by amending the heading to read as follows:

              ``united states board of contract appeals'';

            (2) by striking out subsections (a), (b), and (c);
            (3) in subsection (d)--
                    (A) by striking out the first sentence and 
                inserting in lieu thereof the following:
``The United States Board of Contract Appeals shall have jurisdiction 
to decide any appeal from a decision of a contracting officer of any 
executive agency relative to a contract made by that agency.''; and
                    (B) in the second sentence, by striking out ``the 
                agency board'' and inserting in lieu thereof ``the 
                Board'';
            (4) in subsection (e), by striking out ``An agency board'' 
        and inserting in lieu thereof ``The United States Board of 
        Contract Appeals'';
            (5) in subsection (f), by striking out ``each agency 
        board'' and inserting in lieu thereof ``the United States Board 
        of Contract Appeals'';
            (6) in subsection (g)--
                    (A) in the first sentence of paragraph (1), by 
                striking out ``an agency board of contract appeals'' 
                and inserting in lieu thereof ``the United States Board 
                of Contract Appeals'';
                    (B) by striking out paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2);
            (7) by striking out subsections (h) and (i); and
            (8) by redesignating subsections (d), (e), (f), and (g) (as 
        amended) as subsections (a), (b), (c), and (d), respectively.
    (e) Section 9 of the Contract Disputes Act of 1978 (41 U.S.C. 608) 
is amended--
            (1) in subsection (a), by striking out ``each agency 
        board'' and inserting in lieu thereof ``the United States Board 
        of Contract Appeals''; and
            (2) in subsection (b), by striking out ``the agency board'' 
        and inserting in lieu thereof ``the Board''.
    (f) Section 10 of the Contract Disputes Act of 1978 (41 U.S.C. 609) 
is amended--
            (1) in subsection (a)--
                    (A) in the first sentence of paragraph (1)--
                            (i) by striking out ``Except as provided in 
                        paragraph (2), and in'' and inserting in lieu 
                        thereof ``In''; and
                            (ii) by striking out ``an agency board'' 
                        and inserting in lieu thereof ``the United 
                        States Board of Contract Appeals'';
                    (B) by striking out paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2), and in that paragraph, by striking out ``or (2)'';
            (2) in subsection (b), by striking out ``any agency board'' 
        and ``the agency board'' and inserting in lieu of each ``the 
        Board'';
            (3) in subsection (c), by striking out ``an agency board'' 
        and ``the agency board'' and inserting in lieu of each ``the 
        Board''; and
            (4) in subsection (d), by striking out ``one or more agency 
        boards'' and ``or among the agency boards involved'' and 
        inserting in lieu of each ``the Board''.
    (g) Section 11 of the Contract Disputes Act of 1978 (41 U.S.C. 610) 
is amended--
            (1) in the first sentence, by striking out ``an agency 
        board of contract appeals'' and inserting in lieu thereof ``the 
        United States Board of Contract Appeals''; and
            (2) in the second sentence, by striking out ``the agency 
        board through the Attorney General; or upon application by the 
        board of contract appeals of the Tennessee Valley Authority'' 
        and inserting in lieu thereof ``the Board''.
    (h) Section 13 of the Contract Disputes Act of 1978 (41 U.S.C. 612) 
is amended--
            (1) in subsection (b), by striking out ``an agency board of 
        contract appeals'' and inserting in lieu thereof ``the United 
        States Board of Contract Appeals''; and
            (2) in subsection (d)(2), by striking out ``by the board of 
        contract appeals for'' and inserting in lieu thereof ``by the 
        Board from''.

SEC. 444. REFERENCES TO AGENCY BOARDS OF CONTRACT APPEALS.

    Any reference to an agency board of contract appeals in any 
provision of law or in any rule, regulation, or other paper of the 
United States shall be treated as referring to the United States Board 
of Contract Appeals.
SEC. 445. CONFORMING AMENDMENTS.

    (a) Title 5.--Section 5372a of title 5, United States Code, is 
amended--
            (1) in subsection (a)(1), by striking out ``an agency board 
        of contract appeals appointed under section 8 of the Contract 
        Disputes Act of 1978'' and inserting in lieu thereof ``the 
        United States Board of Contract Appeals'';
            (2) in subsection (a)(2), by striking out ``an agency board 
        of contract appeals established pursuant to section 8 of the 
        Contract Disputes Act of 1978'' and inserting in lieu thereof 
        ``the United States Board of Contract Appeals''; and
            (3) in subsection (b), by striking out ``an appeals board'' 
        each place it appears and inserting in lieu thereof ``the 
        appeals board''.
    (b) Title 10.--(1) Section 2305(e) of title 10, United States Code, 
is amended--
            (A) in paragraph (1), by striking out ``subchapter V of 
        chapter 35 of title 31'' and inserting in lieu thereof ``title 
        IV of the Federal Acquisition Reform Act of 1995''; and
            (B) by striking out paragraph (3).
    (2) Section 2305(f) of such title is amended--
            (A) in paragraph (1), by striking out ``in subparagraphs 
        (A) through (F) of subsection (b)(1) of section 3554 of title 
        31'' and inserting in lieu thereof ``section 424(f)(2) of the 
        Federal Acquisition Reform Act of 1995''; and
            (B) in paragraph (2), by striking out ``paragraph (1) of 
        section 3554(c) of title 31'' and inserting in lieu thereof 
        ``section 424(g)(1)(A) of the Federal Acquisition Reform Act of 
        1995''.
    (c) Federal Property and Administrative Services Act of 1949.--(1) 
Section 303B(h) of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253b(h)) is amended--
            (A) in paragraph (1), by striking out ``subchapter V of 
        chapter 35 of title 31'' and inserting in lieu thereof ``title 
        IV of the Federal Acquisition Reform Act of 1995''; and
            (B) by striking out paragraph (3).
    (2) Section 303B(i) of such Act (41 U.S.C. 253b(i)) is amended--
            (A) in paragraph (1), by striking out ``in subparagraphs 
        (A) through (F) of subsection (b)(1) of section 3554 of title 
        31'' and inserting in lieu thereof ``section 424(f)(2) of the 
        Federal Acquisition Reform Act of 1995''; and
            (B) in paragraph (2), by striking out ``paragraph (1) of 
        section 3554(c) of title 31'' and inserting in lieu thereof 
        ``section 424(g)(1)(A) of the Federal Acquisition Reform Act of 
        1995''.

       Subtitle F--Effective Date; Interim Appointment and Rules

SEC. 451. EFFECTIVE DATE.

    This title shall take effect on October 1, 1996.

SEC. 452. INTERIM APPOINTMENT.

    The Board judge serving as chairman of the board of contract 
appeals of the General Services Administration on the date of the 
enactment of this Act shall serve as Chairman during the two-year 
period beginning on the effective date of this title, unless such 
individual resigns such position or the position otherwise becomes 
vacant before the expiration of such period. The authority vested in 
the President by section 413 shall take effect upon the expiration of 
such two-year period or on the date such position is vacated, whichever 
occurs earlier.

SEC. 453. INTERIM RULES.

    (a) Rules of Procedure.--Until such date as the Board promulgates 
rules of procedure, the rules of procedure of the board of contract 
appeals of the General Services Administration, as in effect on the 
effective date of this Act, shall be the rules of procedure of the 
Board.
    (b) Rules Regarding Board Judges.--Until such date as the Board 
promulgates rules governing the establishment and maintenance of a 
register of eligible applicants and the selection of Board judges, the 
rules of the Armed Services Board of Contract Appeals governing the 
establishment and maintenance of a register of eligible applicants and 
the selection of board members shall be the rules of the Board 
governing the establishment and maintenance of a register of eligible 
applicants and the selection of Board judges, except that any 
provisions of the rules of the Armed Services Board of Contract Appeals 
that authorize any individual other than the chairman of such board to 
select a Board judge shall have no effect.

              TITLE V--EFFECTIVE DATES AND IMPLEMENTATION

SEC. 501. EFFECTIVE DATE AND APPLICABILITY.

    (a) Effective Date.--Except as otherwise provided in this Act, this 
Act and the amendments made by this Act shall take effect on the date 
of the enactment of this Act.
    (b) Applicability of Amendments.--(1) An amendment made by this Act 
shall apply, in the manner prescribed in the final regulations 
promulgated pursuant to section 502 to implement such amendment, with 
respect to any solicitation that is issued, any unsolicited proposal 
that is received, and any contract entered into pursuant
 to such a solicitation or proposal, on or after the date described in 
paragraph (3).
    (2) An amendment made by this Act shall also apply, to the extent 
and in the manner prescribed in the final regulations promulgated 
pursuant to section 502 to implement such amendment, with respect to 
any matter related to--
            (A) a contract that is in effect on the date described in 
        paragraph (3);
            (B) an offer under consideration on the date described in 
        paragraph (3); or
            (C) any other proceeding or action that is ongoing on the 
        date described in paragraph (3).
    (3) The date referred to in paragraphs (1) and (2) is the date 
specified in such final regulations. The date so specified shall be 
October 1, 1996, or any earlier date that is not within 30 days after 
the date on which such final regulations are published.

SEC. 502. IMPLEMENTING REGULATIONS.

    (a) Proposed Revisions.--Proposed revisions to the Federal 
Acquisition Regulation and such other proposed regulations (or 
revisions to existing regulations) as may be necessary to implement 
this Act shall be published in the Federal Register not later than 210 
days after the date of the enactment of this Act.
    (b) Public Comment.--The proposed regulations described in 
subsection (a) shall be made available for public comment for a period 
of not less than 60 days.
    (c) Final Regulations.--Final regulations shall be published in the 
Federal Register not later than 330 days after the date of enactment of 
this Act.
    (d) Modifications.--Final regulations promulgated pursuant to this 
section to implement an amendment made by this Act may provide for 
modification of an existing contract without consideration upon the 
request of the contractor.
    (e) Savings Provisions.--(1) Nothing in this Act shall be construed 
to affect the validity of any action taken or any contract entered into 
before the date specified in the regulations pursuant to section 
501(b)(3) except to the extent and in the manner prescribed in such 
regulations.
    (2) Except as specifically provided in this Act, nothing in this 
Act shall be construed to require the renegotiation or modification of 
contracts in existence on the date of the enactment of this Act.
    (3) Except as otherwise provided in this Act, a law amended by this 
Act shall continue to be applied according to the provisions thereof as 
such law was in effect on the day before the date of the enactment of 
this Act until--
            (A) the date specified in final regulations implementing 
        the amendment of that law (as promulgated pursuant to this 
        section); or
            (B) if no such date is specified in regulations, October 1, 
        1996.
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