[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1670 Referred in Senate (RFS)]







104th CONGRESS
  1st Session
                                H. R. 1670


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 18 (legislative day, September 5), 1995

  Received; read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 AN ACT


 
     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. Definitions relating to competition requirements.
Sec. 103. Contract solicitation amendments.
Sec. 104. Preaward debriefings.
Sec. 105. Contract types.
Sec. 106. Contractor performance.
Sec. 107. Two-phase selection procedures.
                       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.
Sec. 307. Justification of major defense acquisition programs not 
                            meeting goals.
Sec. 308. Enhanced performance incentives for acquisition workforce.
Sec. 309. Results oriented acquisition program cycle.
Sec. 310. Rapid contracting goal.
Sec. 311. Encouragement of multiyear contracting.
Sec. 312. Contractor share of gains and losses from cost, schedule, and 
                            performance experience.
Sec. 313. Phase funding of defense acquisition programs.
Sec. 314. Improved Department of Defense contract payment procedures.
Sec. 315. Consideration of past performance in assignment to 
                            acquisition positions.
Sec. 316. Additional Department of Defense pilot programs.
Sec. 317. Value engineering for Federal agencies.
Sec. 318. Acquisition workforce.
Sec. 319. Demonstration project relating to certain personnel 
                            management policies and procedures.
Sec. 320. Cooperative purchasing.
              TITLE IV--STREAMLINING OF DISPUTE RESOLUTION

                     Subtitle A--General Provisions

Sec. 401. Definitions.
 Subtitle B--Establishment of Civilian and Defense Boards of Contract 
                                Appeals

Sec. 411. Establishment.
Sec. 412. Membership.
Sec. 413. Chairman.
Sec. 414. Rulemaking authority.
Sec. 415. Authorization of appropriations.
   Subtitle C--Functions of Defense and Civilian Boards of Contract 
                                Appeals

Sec. 421. Alternative dispute resolution services.
Sec. 422. Alternative dispute resolution of disputes and protests 
                            submitted to boards.
Sec. 423. Contract disputes.
Sec. 424. Protests.
Sec. 425. Applicability to certain contracts.
    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 disputes authority of boards.
Sec. 444. References to agency boards of contract appeals.
Sec. 445. Conforming amendments.
  Subtitle F--Effective Date; Regulations and Appointment of Chairmen

Sec. 451. Effective date.
Sec. 452. Regulations.
Sec. 453. Appointment of chairmen of defense board and civilian board.
              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) Competition.--(1) 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--
            ``(A) shall obtain full and open competition--
                    ``(i) that provides open access, and
                    ``(ii) that is consistent with the need to 
                efficiently fulfill the Government's requirements,
        through the use of competitive procedures in accordance with 
        this chapter and the Federal Acquisition Regulation; and
            ``(B) shall use the competitive procedure or combination of 
        competitive procedures that is best suited under the 
        circumstances of the procurement.
    ``(2) In determining the competitive procedure appropriate under 
the circumstances, the head of an agency--
            ``(A) shall solicit sealed bids if--
                    ``(i) time permits the solicitation, submission, 
                and evaluation of sealed bids;
                    ``(ii) the award will be made on the basis of price 
                and other price-related factors;
                    ``(iii) it is not necessary to conduct discussions 
                with the responding sources about their bids; and
                    ``(iv) there is a reasonable expectation of 
                receiving more than one sealed bid; and
            ``(B) shall request competitive proposals if sealed bids 
        are not appropriate under clause (A).
    ``(b) Exclusion of Particular Source.--The head of an agency may 
provide for the procurement of property or services covered by this 
title 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.--(1) 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. Standards for determining when the use of 
competitive procedures is not feasible or appropriate shall be set 
forth in the Federal Acquisition Regulation. Each procurement using 
procedures other than competitive procedures (other than a procurement 
for commercial items using simplified procedures 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.
    ``(2) In the case of a procurement using procedures that preclude 
all but one source from responding (hereinafter in this subsection 
referred to as a `sole source procurement'), the Federal Acquisition 
Regulation shall provide for justification and approval under paragraph 
(1) of such procurement under standards that set forth limited 
circumstances for such sole source procurements, including 
circumstances when--
            ``(A) the property or services needed by the agency are 
        available from only one responsible source and no other type of 
        property or services will satisfy the needs of the agency;
            ``(B) the agency's need for the property or services is of 
        such an unusual and compelling urgency that the United States 
        would be seriously injured unless the agency is permitted to 
        award the contract for the property or services to a particular 
        source;
            ``(C) it is necessary to award the contract to a particular 
        source in order (i) to maintain a facility, producer, 
        manufacturer, or other supplier available for furnishing 
        property or services in case of a national emergency or to 
        achieve industrial mobilization, (ii) to establish or maintain 
        an essential engineering, research, or development capability 
        to be provided by an educational or other nonprofit institution 
        or a federally funded research and development center, or (iii) 
        to procure the services of an expert for use, in any litigation 
        or dispute (including any reasonably foreseeable litigation or 
        dispute) involving the Federal Government, in any trial, 
        hearing, or proceeding before any court, administrative 
        tribunal, or agency, or in any part of an alternative dispute 
        resolution process, whether or not the expert is expected to 
        testify;
            ``(D) the terms of an international agreement or a treaty 
        between the United States and a foreign government or 
        international organization, or the written directions of a 
        foreign government reimbursing the agency for the cost of the 
        procurement of the property or services for such government, 
        have the effect of requiring the award of the contract for the 
        property or services to a particular source;
            ``(E) subject to section 2304f, a statute expressly 
        authorizes or requires that the procurement be made through 
        another agency or from a specified source, or the agency's need 
        is for a brand-name commercial item for authorized resale;
            ``(F) the disclosure of the agency's needs would compromise 
        the national security unless the agency is permitted to award 
        the contract for the property or services needed by the agency 
        to a particular source; or
            ``(G) the head of the agency--
                    ``(i) determines that it is necessary in the public 
                interest to award the contract for the property or 
                services needed by the agency to a particular source in 
                the particular procurement concerned, and
                    ``(ii) notifies the Congress in writing of such 
                determination not less than 30 days before the award of 
                the contract.
    ``(3) The authority of the head of an agency under paragraph (2)(G) 
may not be delegated.
    ``(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 maximum 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;
                    (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 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) Competition.--(1) 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--
            ``(A) shall obtain full and open competition--
                    ``(i) that provides open access, and
                    ``(ii) that is consistent with the need to 
                efficiently fulfill the Government's requirements,
        through the use of competitive procedures in accordance with 
        this title and the Federal Acquisition Regulation; and
            ``(B) shall use the competitive procedure or combination of 
        competitive procedures that is best suited under the 
        circumstances of the procurement.
    ``(2) In determining the competitive procedure appropriate under 
the circumstances, an executive agency--
            ``(A) shall solicit sealed bids if--
                    ``(i) time permits the solicitation, submission, 
                and evaluation of sealed bids;
                    ``(ii) the award will be made on the basis of price 
                and other price-related factors;
                    ``(iii) it is not necessary to conduct discussions 
                with the responding sources about their bids; and
                    ``(iv) there is a reasonable expectation of 
                receiving more than one sealed bid; and
            ``(B) shall request competitive proposals if sealed bids 
        are not appropriate under clause (A).
    ``(b) Exclusion of Particular Source.--An executive agency may 
provide for the procurement of property or services covered by this 
title 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.--(1) 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. Standards for determining when the use of 
competitive procedures is not feasible or appropriate shall be set 
forth in the Federal Acquisition Regulation. Each procurement using 
procedures other than competitive procedures (other than a procurement 
for commercial items using simplified procedures 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.
    ``(2) In the case of a procurement using procedures that preclude 
all but one source from responding (hereinafter in this subsection 
referred to as a `sole source procurement'), the Federal Acquisition 
Regulation shall provide for justification and approval under paragraph 
(1) of such procurement under standards that set forth limited 
circumstances for such sole source procurements, including 
circumstances when--
            ``(A) the property or services needed by the executive 
        agency are available from only one responsible source and no 
        other type of property or services will satisfy the needs of 
        the executive agency;
            ``(B) the executive agency's need for the property or 
        services is of such an unusual and compelling urgency that the 
        United States would be seriously injured unless the executive 
        agency is permitted to award the contract for the property or 
        services to a particular source;
            ``(C) it is necessary to award the contract to a particular 
        source in order (i) to maintain a facility, producer, 
        manufacturer, or other supplier available for furnishing 
        property or services in case of a national emergency or to 
        achieve industrial mobilization, (ii) to establish or maintain 
        an essential engineering, research, or development capability 
        to be provided by an educational or other nonprofit institution 
        or a federally funded research and development center, or (iii) 
        to procure the services of an expert for use, in any litigation 
        or dispute (including any reasonably foreseeable litigation or 
        dispute) involving the Federal Government, in any trial, 
        hearing, or proceeding before any court, administrative 
        tribunal, or agency, or in any part of an alternative dispute 
        resolution process, whether or not the expert is expected to 
        testify;
            ``(D) the terms of an international agreement or treaty 
        between the United States Government and a foreign government 
        or international organization, or the written directions of a 
        foreign government reimbursing the executive agency for the 
        cost of the procurement of the property or services for such 
        government, have the effect of requiring the award of the 
        contract for the property or services to a particular source;
            ``(E) subject to section 303M, a statute expressly 
        authorizes or requires that the procurement be made through 
        another executive agency or from a specified source, or the 
        agency's need is for a brand-name commercial item for 
        authorized resale;
            ``(F) the disclosure of the executive agency's needs would 
        compromise the national security unless the agency is permitted 
        to award the contract for the property or services needed by 
        the agency to a particular source; or
            ``(G) the head of the executive agency--
                    ``(i) determines that it is necessary in the public 
                interest to award the contract for the property or 
                services needed by the agency to a particular source in 
                the particular procurement concerned, and
                    ``(ii) notifies the Congress in writing of such 
                determination not less than 30 days before the award of 
                the contract.
    ``(3) The authority of the head of an executive agency under 
paragraph (2)(G) may not be delegated.
    ``(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 maximum 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;
                    (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)--
                    (A) by amending subparagraph (B) of paragraph (2) 
                to read as follows:
                    ``(B) state whether the acquisition is to be 
                conducted pursuant to a contractor verification system 
                (as provided pursuant to section 35) or whether the 
                offeror, its product, or its service otherwise must 
                meet a qualification requirement in order to be 
                eligible for award and, if so, identify the criteria to 
                be used in determining such eligibility;''; and
                    (B) by amending paragraph (4) to read as follows:
            ``(4) a statement that all responsible sources may submit 
        for consideration a bid, proposal, or quotation;''.
    (d) 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 competition that provides open access 
        for responsible sources 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. DEFINITIONS RELATING TO COMPETITION REQUIREMENTS.

    (a) Definition.--Paragraphs (5) and (6) of section 4 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403) are amended to read 
as follows:
            ``(5) The term `competitive procedures' means procedures 
        under which an agency enters into a contract pursuant to full 
        and open competition that provides open access and is 
        consistent with the need to efficiently fulfill the 
        Government's requirements.
            ``(6) The term `open access', when used with respect to a 
        procurement, means that all responsible sources are permitted 
        to submit sealed bids or competitive proposals on the 
        procurement.''.
    (b) Conforming Amendments.--
            (1) Office of federal procurement policy act.--Section 20 
        of the Office of Federal Procurement Policy Act is amended--
                    (A) in subsection (b)(1), subsection (b)(3)(A), and 
                subsection (c), by inserting after ``full and open 
                competition'' the following: ``that provides open 
                access and is consistent with the need to efficiently 
                fulfill the Government's requirements'' each place it 
                appears; and
                    (B) in subsection (b)(4)(C), by striking out ``to 
                full and open competition that remain'' and inserting 
                in lieu thereof ``that remain to achieving full and 
                open competition that provides open access and is 
                consistent with the need to efficiently fulfill the 
                Government's requirements''.
            (2) Title 10.--Title 10, United States Code, is amended--
                    (A) in section 2302(2), by striking out the first 
                sentence and inserting in lieu thereof the following: 
                ``The term `competitive procedures' means procedures 
                under which an agency enters into a contract pursuant 
                to full and open competition that provides open access 
                and is consistent with the need to efficiently fulfill 
                the Government's requirements.'';
                    (B) in section 2302(3)(D), by striking out ``full 
                and open competition'' and inserting in lieu thereof 
                ``open access'';
                    (C) in section 2323(e)(3), by striking out ``less 
                than full and open'' and inserting in lieu thereof 
                ``procedures other than''; and
                    (D) in section 2323(i)(3)(A), by striking out 
                ``full and open''.
            (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 the first 
                sentence and inserting in lieu thereof the following: 
                ``The term `competitive procedures' means procedures 
                under which an executive agency enters into a contract 
                pursuant to full and open competition that provides 
                open access and is consistent with the need to 
                efficiently fulfill the Government's requirements.'';
                    (B) in section 309(c)(4), by striking out ``full 
                and open competition'' and inserting in lieu thereof 
                ``open access''; and
                    (C) in section 304B(a)(2)(B), by striking out 
                ``encouraging full and open competition or''.
            (4) Other laws.--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''.

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 (A) and inserting 
                in lieu thereof the following: ``(A) In preparing for 
                the procurement of property or services, the head of an 
                agency shall use advance procurement planning and 
                market research.'';
                    (B) by striking out subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B) and in that subparagraph by striking 
                out ``For the purposes of subparagraphs (A) and (B), 
                the'' and inserting in lieu thereof ``Each solicitation 
                under this chapter shall include specifications that 
                include restrictive provisions or conditions only to 
                the extent necessary to satisfy the needs of the agency 
                or as authorized by law. The'';
            (2) in subsection (a)(2), by inserting after ``(other than 
        for'' the following: ``a procurement for commercial items using 
        simplified procedures or''; and
            (3) 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) in subsection (a)--
                    (i) by striking out paragraph (1) and inserting in 
                lieu thereof the following: ``(1) In preparing for the 
                procurement of property or services, an executive 
                agency shall use advance procurement planning and 
                market research.'';
                    (ii) by striking out paragraph (2); and
                    (iii) by redesignating paragraph (3) as paragraph 
                (2) and in that paragraph by striking out ``For the 
                purposes of paragraphs (1) and (2), the'' and inserting 
                in lieu there of ``Each solicitation under this title 
                shall include specifications that include restrictive 
                provisions or conditions only to the extent necessary 
                to satisfy the needs of the executive agency or as 
                authorized by law. The''; and
            (B) in subsection (b), by inserting after ``(other than 
        for'' the following: ``a procurement for commercial items using 
        simplified procedures or''.
    (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 but 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 but 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 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''.
    (3) The item relating to section 2306 in the table of sections at 
the beginning of chapter 137 of such title is amended to read as 
follows:

``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'';
            (B) by striking out ``Every contract awarded'' in the 
        second sentence of subsection (a) and all that follows through 
        the end of the subsection; and
            (C) in subsection (b), by striking out ``used,'' in the 
        first sentence and all that follows through the end of the 
        subsection and inserting in lieu thereof ``used.''.
    (2) The heading of such section is amended to read as follows:
``SEC. 304. CONTRACT TYPES.''.

    (3) The item relating to section 304 in the table of contents for 
such Act (contained in section 1(b)) 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) Part IV of subtitle A of title 10, 
United States Code, is amended--
            (A) by transferring section 2855 to the end of chapter 137; 
        and
            (B) by striking out the section heading and subsection (a) 
        of such section and inserting in lieu thereof the following:
``Sec. 2332. Contracts for architectural and engineering services
    ``(a) 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.''.
    (3) The table of sections at the beginning of chapter 169 of such 
title is amended by striking out the item relating to section 2855.
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 System.--
            ``(1) Requirement.--The Federal Acquisition Regulation 
        shall provide for a contractor verification system in 
        accordance with this section.
            ``(2) Procedures.--The Federal Acquisition Regulation shall 
        provide procedures for the head of an executive agency to 
        follow in order to verify a contractor as eligible to compete 
        for contracts to furnish property or services that are procured 
        by the executive agency on a recurring basis.
            ``(3) Notification.--The procedures shall include a 
        requirement that the head of an executive agency provide for 
        the publication of appropriate notification about the 
        verification system in the Commerce Business Daily.
    ``(b) Evaluation.--(1) Under the procedures referred to in 
subsection (a)(2), the head of an executive agency in granting a 
verification to a contractor shall use the following factors as the 
basis of the evaluation:
            ``(A) The efficiency and effectiveness of its business 
        practices.
            ``(B) The level of quality of its product or service.
            ``(C) Past performance of the contractor with regard to the 
        particular property or service.
    ``(2)(A) The evaluation of past performance may include performance 
under--
            ``(i) a contract with an executive agency of the Federal 
        Government;
            ``(ii) a contract with an agency of a State or local 
        government; or
            ``(iii) a contract with an entity in the private sector.
    ``(B) The procedures shall include a requirement that, in the case 
of a contractor with respect to which there is no information on past 
contract performance or with respect to which information on past 
contract performance is not available, the contractor may not be 
evaluated favorably or unfavorably on the factor of past performance.
    ``(c) Opportunity for All Interested Sources.--The Federal 
Acquisition Regulation shall provide procedures for ensuring that all 
interested sources, including small businesses, have a fair opportunity 
to be considered for verification under the verification system.
    ``(d) 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 the procurement of 
property or services referred to in subsection (a)(2) on the basis of a 
competition in accordance with section 2304 of title 10, United States 
Code, or section 303 of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253) for contractors verified with 
respect to such property or services pursuant to the contractor 
verification system.
    ``(e) 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 
        granted a contractor under this section upon the expiration of 
        a period specified by the head of an executive agency;
            ``(2) may revoke a verification granted 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; and
            ``(3) may provide that a contractor whose verification is 
        terminated or revoked will have a fair opportunity to be 
        considered for reentry into the verification system.
    ``(f) Special Applicability Rule.--Notwithstanding section 34, the 
verification system shall apply to the procurement of commercial 
items.''.
    (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.
SEC. 107. TWO-PHASE SELECTION PROCEDURES.

    (a) Armed Services Acquisitions.--(1) Chapter 137 of title 10, 
United States Code, is amended by inserting after section 2305 the 
following new section:
``Sec. 2305a. Two-phase selection procedures
    ``(a) Authorization.--Unless the traditional acquisition approach 
of design-bid-build is used or another acquisition procedure authorized 
by law is used, the head of an agency shall use the two-phase selection 
procedures authorized in this section for entering into a contract for 
the design and construction of a public building, facility, or work 
when a determination is made under subsection (b) that the procedures 
are appropriate for use.
    ``(b) Criteria for Use.--A contracting officer shall make a 
determination whether two-phase selection procedures are appropriate 
for use for entering into a contract for the design and construction of 
a public building, facility, or work when the contracting officer 
anticipates that three or more offers will be received for such 
contract, design work must be performed before an offeror can develop a 
price or cost proposal for such contract, the offeror will incur a 
substantial amount of expense in preparing the offer, and the 
contracting officer has considered information such as the following:
            ``(1) The extent to which the project requirements have 
        been adequately defined.
            ``(2) The time constraints for delivery of the project.
            ``(3) The capability and experience of potential 
        contractors.
            ``(4) The suitability of the project for use of the two-
        phase selection procedures.
            ``(5) The capability of the agency to manage the two-phase 
        selection process.
            ``(6) Other criteria established by the agency.
    ``(c) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The agency develops, either in-house or by contract, 
        a scope of work statement for inclusion in the solicitation 
        that defines the project and provides prospective offerors with 
        sufficient information regarding the Government's requirements 
        (which may include criteria and preliminary design, budget 
        parameters, and schedule or delivery requirements) to enable 
        the offerors to submit proposals which meet the Government's 
        needs. When the two-phase selection procedure is used for 
        design and construction of a public building, facility, or work 
        and the agency contracts for development of the scope of work 
        statement, the agency shall contract for architectural/
        engineering services as defined by and in accordance with the 
        Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.).
            ``(2) The contracting officer solicits phase-one proposals 
        that--
                    ``(A) include information on the offeror's--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; or
                            ``(ii) cost or price information.
            ``(3) The evaluation factors to be used in evaluating 
        phase-one proposals are stated in the solicitation and include 
        specialized experience and technical competence, capability to 
        perform, past performance of the offeror's team (including the 
        architect-engineer and construction members of the team if the 
        project is for the construction of a public building, facility, 
        or work) and other appropriate factors, except that cost-
        related or price-related evaluation factors are not permitted. 
        Each solicitation establishes the relative importance assigned 
        to the evaluation factors and subfactors that must be 
        considered in the evaluation of phase-one proposals. The agency 
        evaluates phase-one proposals on the basis of the phase-one 
        evaluation factors set forth in the solicitation.
            ``(4) The contracting officer selects as the most highly 
        qualified the number of offerors specified in the solicitation 
        to provide the property or services under the contract and 
        requests the selected offerors to submit phase-two competitive 
        proposals that include technical proposals and cost or price 
        information. Each solicitation establishes with respect to 
        phase two--
                    ``(A) the technical submission for the proposal, 
                including design concepts or proposed solutions to 
                requirements addressed within the scope of work (or 
                both), and
                    ``(B) the evaluation factors and subfactors, 
                including cost or price, that must be considered in the 
                evaluations of proposals in accordance with section 
                2305(b)(4) of this title.
        The contracting officer separately evaluates the submissions 
        described in subparagraphs (A) and (B).
            ``(5) The agency awards the contract in accordance with 
        section 2305(b)(4) of this title.
    ``(d) Solicitation to State Number of Offerors To Be Selected for 
Phase Two Requests for Competitive Proposals.--A solicitation issued 
pursuant to the procedures described in subsection (c) shall state the 
maximum number of offerors that are to be selected to submit 
competitive proposals pursuant to subsection (c)(4). The maximum number 
specified in the solicitation shall not exceed 5 unless the agency 
determines with respect to an individual solicitation that a specified 
number greater than 5 is in the Government's interest and is consistent 
with the purposes and objectives of the two-phase selection process.
    ``(e) Requirement for Guidance and Regulations.--The Federal 
Acquisition Regulatory Council, established by section 25(a) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 421(a)), shall 
provide guidance and promulgate regulations--
            ``(1) regarding the factors that may be considered in 
        determining whether the two-phase contracting procedures 
        authorized by subsection (a) are appropriate for use in 
        individual contracting situations;
            ``(2) regarding the factors that may be used in selecting 
        contractors; and
            ``(3) providing for a uniform approach to be used 
        Government-wide.''.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by adding after the item relating to section 2305 the 
following new item:

``2305a. Two-phase selection procedures.''.
    (b) Civilian Agency Acquisitions.--(1) Title III of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
seq.) is amended by inserting after section 303L the following new 
section:
    ``(a) Authorization.--Unless the `traditional' acquisition approach 
of design-bid-build is used or another acquisition procedure authorized 
by law is used, the head of an executive agency shall use the two-phase 
selection procedures authorized in this section for entering into a 
contract for the design and construction of a public building, 
facility, or work when a determination is made under subsection (b) 
that the procedures are appropriate for use. The two-phase selection 
procedures authorized in this section may also be used for entering 
into a contract for the acquisition of property or services other than 
construction services when such a determination is made.
    ``(b) Criteria for Use.--A contracting officer shall make a 
determination whether two-phase selection procedures are appropriate 
for use for entering into a contract for the design and construction of 
a public building, facility, or work when the contracting officer 
anticipates that three or more offers will be received for such 
contract, design work must be performed before an offeror can develop a 
price or cost proposal for such contract, the offeror will incur a 
substantial amount of expense in preparing the offer, and the 
contracting officer has considered information such as the following:
            ``(1) The extent to which the project requirements have 
        been adequately defined.
            ``(2) The time constraints for delivery of the project.
            ``(3) The capability and experience of potential 
        contractors.
            ``(4) The suitability of the project for use of the two-
        phase selection procedures.
            ``(5) The capability of the agency to manage the two-phase 
        selection process.
            ``(6) Other criteria established by the agency.
    ``(c) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The agency develops, either in-house or by contract, 
        a scope of work statement for inclusion in the solicitation 
        that defines the project and provides prospective offerors with 
        sufficient information regarding the Government's requirements 
        (which may include criteria and preliminary design, budget 
        parameters, and schedule or delivery requirements) to enable 
        the offerors to submit proposals which meet the Government's 
        needs. When the two-phase selection procedure is used for 
        design and construction of a public building, facility, or work 
        and the agency contracts for development of the scope of work 
        statement, the agency shall contract for architectural/
        engineering services as defined by and in accordance with the 
        Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.).
            ``(2) The contracting officer solicits phase-one proposals 
        that--
                    ``(A) include information on the offeror's--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; or
                            ``(ii) cost or price information.
            ``(3) The evaluation factors to be used in evaluating 
        phase-one proposals are stated in the solicitation and include 
        specialized experience and technical competence, capability to 
        perform, past performance of the offeror's team (including the 
        architect-engineer and construction members of the team if the 
        project is for the construction of a public building, facility, 
        or work) and other appropriate factors, except that cost-
        related or price-related evaluation factors are not permitted. 
        Each solicitation establishes the relative importance assigned 
        to the evaluation factors and subfactors that must be 
        considered in the evaluation of phase-one proposals. The agency 
        evaluates phase-one proposals on the basis of the phase-one 
        evaluation factors set forth in the solicitation.
            ``(4) The contracting officer selects as the most highly 
        qualified the number of offerors specified in the solicitation 
        to provide the property or services under the contract and 
        requests the selected offerors to submit phase-two competitive 
        proposals that include technical proposals and cost or price 
        information. Each solicitation establishes with respect to 
        phase two--
                    ``(A) the technical submission for the proposal, 
                including design concepts or proposed solutions to 
                requirements addressed within the scope of work (or 
                both), and
                    ``(B) the evaluation factors and subfactors, 
                including cost or price, that must be considered in the 
                evaluations of proposals in accordance with section 
                303B(d).
        The contracting officer separately evaluates the submissions 
        described in subparagraphs (A) and (B).
            ``(5) The agency awards the contract in accordance with 
        section 303B of this title.
    ``(d) Solicitation to State Number of Offerors To Be Selected for 
Phase Two Requests for Competitive Proposals.--A solicitation issued 
pursuant to the precedures described in subsection (c) shall state the 
maximum number of offerors that are to be selected to submit 
competitive proposals pursuant to subsection (c)(4). The maximum number 
specified in the solicitation shall not exceed 5 unless the agency 
determines with respect to an individual solicitation that a specified 
number greater than 5 is in the Government's interest and is consistent 
with the purposes and objectives of the two-phase selection process.
    ``(e) Requirement for Guidance and Regulations.--The Federal 
Acquisition Regulatory Council, established by section 25(a) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 421(a)), shall 
provide guidance and promulgate regulations--
            ``(1) regarding the factors that may be considered in 
        determining whether the two-phase contracting procedures 
        authorized by subsection (a) are appropriate for use in 
        individual contracting situations;
            ``(2) regarding the factors that may be used in selecting 
        contractors; and
            ``(3) providing for a uniform approach to be used 
        Government-wide.''.
    (2) The table of sections at the beginning of such Act is amended 
by inserting after the item relating to section 303L the following new 
item:

``Sec. 303M. Two-phase selection procedures.''.
                       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 certified 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 certified 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) of title 10, 
United States Code, as amended by section 101(a), is further amended--
            (1) in paragraph (1), by inserting after ``special 
        simplified procedures'' the following: ``for purchases of 
        commercial items and''; and
            (2) by adding at the end the following new paragraph:
    ``(4) The Federal Acquisition Regulation shall provide that, in the 
case of a purchase of commercial items in an amount greater than the 
simplified acquisition threshold, the head of an agency--
            ``(A) may not conduct the purchase on a sole source basis 
        unless the need to do so is justified in writing and approved 
        in accordance with the Federal Acquisition Regulation; and
            ``(B) shall include in the contract file a written 
        description of the procedures used in awarding the contract and 
        the number of offers received.''.
    (b) Civilian Agency Acquisitions.--Section 303(e) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253), as 
amended by section 101(b), is further amended--
            (1) in paragraph (1), by inserting after ``special 
        simplified procedures'' the following: ``for purchases of 
        commercial items and''; and
            (2) by adding at the end the following new paragraph:
    ``(5) The Federal Acquisition Regulation shall provide that, in the 
case of a purchase of commercial items in an amount greater than the 
simplified acquisition threshold, an executive agency--
            ``(A) may not conduct the purchase on a sole source basis 
        unless the need to do so is justified in writing and approved 
        in accordance with the Federal Acquisition Regulation; and
            ``(B) shall include in the contract file a written 
        description of the procedures used in awarding the contract and 
        the number of offers received.''.
    (c) Simplified Notice.--Section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) is amended--
            (1) in subsection (a)(5) (as redesignated by section 
        101(c))--
                    (A) by striking out ``limited''; and
                    (B) by inserting before ``submission'' the 
                following: ``issuance of solicitations and the''; and
            (2) in subsection (b)(6), by striking out ``threshold--'' 
        and inserting in lieu thereof ``threshold, or a contract for 
        the procurement of commercial items using simplified 
        procedures--''.

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 is the policy of the Federal Government to rely on the private 
sector 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.--(A) 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 that is not specifically imposed 
        by statute shall be removed by the Administrator for Federal 
        Procurement Policy from the Federal Acquisition Regulation 
        unless--
                    (i) written justification for such certification is 
                provided to the Administrator by the Federal 
                Acquisition Regulatory Council; and
                    (ii) the Administrator approves in writing the 
                retention of such certification.
            (B)(i) Not later than 210 days after the date of the 
        enactment of this Act, any certification required of 
        contractors or offerors by a procurement regulation of an 
        executive agency that is not specifically imposed by statute 
        shall be removed by the head of the executive agency from such 
        regulation unless--
                    (I) written justification for such certification is 
                provided to the head of the executive agency by the 
                senior procurement executive; and
                    (II) the head of the executive agency approves in 
                writing the retention of such certification.
            (ii) For purposes of clause (i), the term ``head of the 
        executive agency'' with respect to a military department means 
        the Secretary of Defense.
            (iii) The Secretary of Defense may delegate his duties 
        under this subparagraph only to the Under Secretary of Defense 
        for Acquisition and Technology.
            (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. 29. 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:
    ``(c) Prohibition on Certification Requirements.--(1) A requirement 
for a certification by a contractor or offeror may not be included in 
the Federal Acquisition Regulation unless--
            ``(A) the certification is specifically imposed by statute; 
        or
            ``(B) written justification for such certification is 
        provided to the Administrator for Federal Procurement Policy by 
        the Federal Acquisition Regulatory Council, and the 
        Administrator approves in writing the inclusion of such 
        certification.
    ``(2)(A) A requirement for a certification by a contractor or 
offeror may not be included in a procurement regulation of an executive 
agency unless--
            ``(i) the certification is specifically imposed by statute; 
        or
            ``(ii) written justification for such certification is 
        provided to the head of the executive agency by the senior 
        procurement executive of the agency, and the head of the 
        executive agency approves in writing the inclusion of such 
        certification.
    ``(B) For purposes of subparagraph (A), the term `head of the 
executive agency' with respect to a military department means the 
Secretary of Defense.
    ``(C) The Secretary of Defense may delegate his duties under this 
paragraph only to the Under Secretary of Defense for Acquisition and 
Technology.''.
            (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.''.
    (c) Policy of Congress.--Section 29 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 425) is further amended by adding 
after subsection (a) the following new subsection:
    ``(b) Construction of Certification Requirements.--A provision of 
law may not be construed as requiring a certification by a contractor 
or offeror in a procurement made or to be made by the Federal 
Government unless that provision of law specifically refers to this 
subsection and provides that, notwithstanding this subsection, such a 
certification shall be required.''.

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 October 1, 1996, and shall 
expire on October 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.--
            (1) Subject to paragraph (2), section 21(e) of the Arms 
        Export Control Act (22 U.S.C. 2761(e)) is amended--
                    (A) by inserting ``and'' after the semicolon at the 
                end of paragraph (1)(A);
                    (B) by striking out subparagraph (B) of paragraph 
                (1);
                    (C) by redesignating subparagraph (C) of paragraph 
                (1) as subparagraph (B);
                    (D) by striking out paragraph (2); and
                    (E) by redesignating paragraph (3) as paragraph 
                (2).
            (2) Paragraph (1) shall be effective only if--
                    (A) the President, in the budget of the President 
                for fiscal year 1997, proposes legislation that if 
                enacted would be qualifying offsetting legislation; and
                    (B) there is enacted by October 1, 1996, qualifying 
                offsetting legislation.
            (3) If the conditions in paragraph (2) are met, then the 
        amendments made by paragraph (1) shall take effect on October 
        1, 1996.
            (4) For purposes of this subsection:
                    (A) The term ``qualifying offsetting legislation'' 
                means legislation that includes provisions that--
                            (i) offset fully the estimated revenues 
                        lost as a result of the amendments made by 
                        paragraph (1) for each of the fiscal years 1997 
                        through 2000;
                            (ii) expressly state that they are enacted 
                        for the purpose of the offset described in 
                        clause (i); and
                            (iii) are included in full on the PayGo 
                        scorecard.
                    (B) The term ``PayGo scorecard'' means the 
                estimates that are made with respect to fiscal years 
                through fiscal year 2000 by the Director of the 
                Congressional Budget Office and the Director of the 
                Office of Management and Budget under section 252(d) of 
                the Balanced Budget and Emergency Deficit Control Act 
                of 1985.
    (b) Effective Dates.--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 during the period beginning on October 1, 1996, and ending on 
September 30, 2000.

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 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 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 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 
Defense Board or the Civilian Board 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 15 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 a 
                        preponderance of the 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(h) of title 10, United States Code, with respect 
                to procurements subject to that section, and section 
                304A(h) of Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 254b(h), 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 Defense Board or the Civilian Board 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) prohibit individual meetings between a Federal agency 
        employee and an offeror or potential offeror for, or a 
        recipient of, a contract or subcontract under a Federal agency 
        procurement, provided that unauthorized disclosure or receipt 
        of contractor bid or proposal information or source selection 
        information does not occur;
            ``(5) 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;
            ``(6) authorize the withholding of information from, nor 
        restrict its receipt by, the Defense Board or the Civilian 
        Board in the course of a protest against the award or proposed 
        award of a Federal agency procurement contract; or
            ``(7) 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.
    (e) Repeal of Data Collection Requirement.--Subsection (h) of 
section 111 of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 759) is repealed.
SEC. 307. JUSTIFICATION OF MAJOR DEFENSE ACQUISITION PROGRAMS NOT 
              MEETING GOALS.

    Section 2220(b) of title 10, United States Code, is amended by 
adding at the end the following: ``In addition, the Secretary shall 
include in such annual report a justification for the continuation of 
any program that--
            ``(1) is more than 50 percent over the cost goal 
        established for the development, procurement, or operational 
        phase of the program;
            ``(2) fails to achieve at least 50 percent of the 
        performance capability goals established for the development, 
        procurement, or operational phase of the program; or
            ``(3) is more than 50 percent behind schedule, as 
        determined in accordance with the schedule goal established for 
        the development, procurement, or operational phase of the 
        program.''.

SEC. 308. ENHANCED PERFORMANCE INCENTIVES FOR ACQUISITION WORKFORCE.

    (a) Armed Services Acquisitions.--Subsection (b) of section 5001 of 
the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355; 
108 Stat. 3350; 10 U.S.C. 2220 note) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by designating the second sentence as paragraph (2);
            (3) by inserting ``(1)'' after ``(b) Enhanced System of 
        Performance Incentives.--''; and
            (4) by adding at the end the following:
    ``(3) The Secretary shall include in the enhanced system of 
incentives the following:
            ``(A) Pay bands.
            ``(B) Significant and material pay and promotion incentives 
        to be awarded, and significant and material unfavorable 
        personnel actions to be imposed,
         under the system exclusively, or primarily, on the basis of 
the contributions of personnel to the performance of the acquisition 
program in relation to cost goals, performance goals, and schedule 
goals.
            ``(C) Provisions for pay incentives and promotion 
        incentives to be awarded under the system.''.
    (b) Civilian Agency Acquisitions.--Subsection (c) of section 5051 
of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355; 108 Stat. 3351; 41 U.S.C. 263 note) is amended--
            (1) by redesignating subparagraphs (A) and (B) of paragraph 
        (2) as clauses (i) and (ii), respectively;
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) by inserting ``(1)'' after ``(c) Enhanced System of 
        Performance Incentives.--''; and
            (4) by adding at the end the following:
    ``(2) The Deputy Director shall include in the enhanced system of 
incentives under paragraph (1)(B) the following:
            ``(A) Pay bands.
            ``(B) Significant and material pay and promotion incentives 
        to be awarded, and significant and material unfavorable 
        personnel actions to be imposed, under the system exclusively, 
        or primarily, on the basis of the contributions of personnel to 
        the performance of the acquisition program in relation to cost 
        goals, performance goals, and schedule goals.
            ``(C) Provisions for pay incentives and promotion 
        incentives to be awarded under the system.''.

SEC. 309. RESULTS ORIENTED ACQUISITION PROGRAM CYCLE.

    Section 5002(a) of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103-355; 108 Stat. 3350) is amended--
            (1) by inserting ``(1)'' before ``to ensure''; and
            (2) by striking out the period at the end and inserting in 
        lieu thereof the following: ``; (2) to ensure that the 
        regulations compress the time periods associated with 
        developing, procuring, and making operational new systems; and 
        (3) to ensure that Department of Defense directives relating to 
        development and procurement of information systems (numbered in 
        the 8000 series) and the Department of Defense directives 
        numbered in the 5000 series are consolidated into one series of 
        directives that is consistent with such compressed time 
        periods.''.

SEC. 310. RAPID CONTRACTING GOAL.

    (a) Goal.--The Office of Federal Procurement Policy Act, as amended 
by section 106, is further amended by adding at the end the following 
new section:

``SEC. 36. RAPID CONTRACTING GOAL.

    ``The Administrator for Federal Procurement Policy shall establish 
a goal of reducing by 50 percent the time necessary for executive 
agencies to acquire an item for the user of that item.''.
    (b) Clerical Amendment.--The table of contents for such Act, 
contained in section 1(b), is amended by adding at the end the 
following new item:

``Sec. 36. Rapid contracting goal.''.
SEC. 311. ENCOURAGEMENT OF MULTIYEAR CONTRACTING.

    (a) Armed Services Acquisitions.--Section 2306b(a) of title 10, 
United States Code, is amended in the matter preceding paragraph (1) by 
striking out ``may'' and inserting in lieu thereof ``shall, to the 
maximum extent possible,''.
    (b) Civilian Agency Acquisitions.--Section 304B(a) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254c(a)) is 
amended in the matter preceding paragraph (1) by striking out ``may'' 
and inserting in lieu thereof ``shall, to the maximum extent 
possible,''.

SEC. 312. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, SCHEDULE, AND 
              PERFORMANCE EXPERIENCE.

    (a) Armed Services Acquisitions.--(1) Chapter 137 of title 10, 
United States Code, is amended by inserting after section 2306b the 
following new section:
``Sec. 2306c. Contractor share of gains and losses from cost, schedule, 
              and performance experience
    ``The Federal Acquisition Regulation shall contain provisions to 
ensure that, for any cost-type contract or incentive-type contract, the 
contractor may be rewarded for contract performance exceeding the 
contract cost, schedule, or performance parameters to the benefit of 
the United States and may be penalized for failing to adhere to cost, 
schedule, or performance parameters to the detriment of the United 
States.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2306b the 
following new item:

``2306c. Contractor share of gains and losses from cost, schedule, and 
                            performance experience.''.
    (b) Civilian Agency Acquisitions.--(1) 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 304C the following new 
section:
``SEC. 304D. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, SCHEDULE, 
              AND PERFORMANCE EXPERIENCE.

    ``The Federal Acquisition Regulation shall contain provisions to 
ensure that, for any cost-type contract or incentive-type contract, the 
contractor may be rewarded for contract performance exceeding the 
contract cost, schedule, or performance parameters to the benefit of 
the United States and may be penalized for failing to adhere to cost, 
schedule, or performance parameters to the detriment of the United 
States.''.
    (2) The table of contents for such Act, contained in section 1(b), 
is amended by inserting after the item relating to section 304C the 
following new item:

``Sec. 304D. Contractor share of gains and losses from cost, schedule, 
                            and performance experience.''.
SEC. 313. PHASE FUNDING OF DEFENSE ACQUISITION PROGRAMS.

    Chapter 131 of title 10, United States Code, is amended by adding 
at the end the following new section:
``Sec. 2221. Funding for results oriented acquisition program cycle
    ``Before initial funding is made available for the development, 
procurement, or operational phase of an acquisition program for which 
an authorization of appropriations is required by section 114 of this 
title, the Secretary of Defense shall submit to Congress information 
about the objectives and plans for the conduct of that phase and the 
funding requirements for the entire phase. The information shall 
identify the intended user of the system to be acquired under the 
program and shall include objective, quantifiable criteria for 
assessing the extent to which the objectives and goals determined 
pursuant to section 2435 of this title are achieved.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2221. Funding for results oriented acquisition program cycle.''.
SEC. 314. IMPROVED DEPARTMENT OF DEFENSE CONTRACT PAYMENT PROCEDURES.

    (a) Review and Improvement of Procedures.--The Comptroller General 
of the United States shall review commercial practices regarding 
accounts payable and, considering the results of the review, develop 
standards for the Secretary of Defense to consider using for improving 
the contract payment procedures and financial management systems of the 
Department of Defense.
    (b) GAO Report.--Not later than September 30, 1996, the Comptroller 
General shall submit to Congress a report containing the following 
matters:
            (1) The weaknesses in the financial management processes of 
        the Department of Defense.
            (2) Deviations of the Department of Defense payment 
        procedures and financial management systems from the standards 
        developed pursuant to subsection (a), expressed quantitatively.
            (3) The officials of the Department of Defense who are 
        responsible for resolving the deviations.

SEC. 315. CONSIDERATION OF PAST PERFORMANCE IN ASSIGNMENT TO 
              ACQUISITION POSITIONS.

    (a) Requirement.--Section 1701(a) of title 10, United States Code, 
is amended by adding at the end the following: ``The policies and 
procedures shall provide that education and training in acquisition 
matters, and past performance of acquisition responsibilities, are 
major factors in the selection of personnel for assignment to 
acquisition positions in the Department of Defense.''.
    (b) Performance Requirements for Assignment.--(1) Section 1723(a) 
of title 10, United States Code, is amended by inserting ``, including 
requirements relating to demonstrated past performance of acquisition 
duties,'' in the first sentence after ``experience requirements''.
    (2) Section 1724(a)(2) of such title is amended by inserting before 
the semicolon at the end the following: ``and have demonstrated 
proficiency in the performance of acquisition duties in the contracting 
position or positions previously held''.
    (3) Section 1735 of such title is amended--
            (A) in subsection (b)--
                    (i) by striking out ``and'' at the end of paragraph 
                (2);
                    (ii) by striking out the period at the end of 
                paragraph (3) and inserting in lieu thereof ``; and''; 
                and
                    (iii) by adding at the end the following:
            ``(4) must have demonstrated proficiency in the performance 
        of acquisition duties.'';
            (B) in subsection (c)--
                    (i) by striking out ``and'' at the end of paragraph 
                (2);
                    (ii) by striking out the period at the end of 
                paragraph (3) and inserting in lieu thereof ``; and''; 
                and
                    (iii) by adding at the end the following:
            ``(4) must have demonstrated proficiency in the performance 
        of acquisition duties.'';
            (C) in subsection (d), by inserting before the period at 
        the end the following: ``, and have demonstrated proficiency in 
        the performance of acquisition duties''; and
            (D) in subsection (e), by inserting before the period at 
        the end the following: ``, and have demonstrated proficiency in 
        the performance of acquisition duties''.
SEC. 316. ADDITIONAL DEPARTMENT OF DEFENSE PILOT PROGRAMS.

    (a) Authority To Conduct Defense Facility-Wide Pilot Program.--The 
Secretary of Defense may conduct a pilot program, to be known as the 
``defense facility-wide pilot program'', for the purpose of determining 
the potential for increasing the efficiency and effectiveness of the 
acquisition process in facilities.
    (b) Scope of Program.--At a facility designated as a participant in 
the pilot program, the pilot program shall consist of the following:
            (1) All contracts and subcontracts for defense supplies and 
        services that are performed at the facility.
            (2) All contracts and subcontracts performed elsewhere that 
        the Secretary determines are directly and substantially related 
        to the production of defense supplies and services at the 
        facility and are necessary for the pilot program.
    (c) Designation of Participating Facilities.--(1) The Secretary may 
designate up to two facilities as participants in the defense facility-
wide pilot program.
    (2) Subject to subsection (g), the Secretary may determine the 
scope and duration of a designation made under this paragraph.
    (d) Criteria for Designation.--(1) Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall provide to the 
congressional defense committees a detailed description of the proposed 
criteria to be used in selecting facilities for designation as 
participants in the defense facility-wide pilot program. The Secretary 
may not select any facilities for participation in the program until at 
least 30 days have passed after providing such criteria.
    (2) After selecting both facilities for designation as participants 
in the program, the Secretary shall notify the congressional defense 
committees of the selection and submit a description--
            (A) of the management goals and objectives intended to be 
        achieved for each facility selected; and
            (B) of the method by which the Secretary intends to monitor 
        and measure the performance of the selected facilities in 
        meeting such management goals and objectives.
    (3)(A) In developing the criteria referred to paragraph (1), the 
Secretary shall ensure that such criteria reflect the following 
objectives:
            (i) A significant reduction of the cost to the Government 
        for programs carried out at the designated facilities.
            (ii) A reduction of the schedule associated with programs 
        carried out at the designated facilities.
            (iii) An increased used of commercial practices and 
        procedures for programs carried at the designated facilities.
            (iv) That the designation of a facility under subsection 
        (c) does not place a competing domestic manufacturer at a 
        significant competitive disadvantage.
    (B) The criteria shall also require that, with respect to any 
facility designated under subsection (c), all or substantially all of 
the contracts to be awarded and performed at the facility after the 
designation, and all or substantially all of the subcontracts to be 
awarded under those contracts and performed at the facility after the 
designation, will be--
            (i) for the production of supplies or services on a firm-
        fixed price basis;
            (ii) awarded without requiring the contractors or 
        subcontractors to provide certified cost or pricing data 
        pursuant to section 2306a of title 10, United States Code; and
            (iii) awarded and administered without the application of 
        cost accounting standards under section 26(f) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 422(f)).
    (e) Exemption From Certain Requirements.--In the case of a contract 
or subcontract that is to be performed at a facility designated for 
participation in the defense facility-wide pilot program and that is 
subject to section 2306a of title 10, United States Code, or section 
26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 
422(f)), the Secretary of Defense may exempt such contract or 
subcontract from the requirement to obtain certified cost or pricing 
data under such section 2306a or the requirement to apply mandatory 
cost accounting standards under such section 26(f) if the Secretary 
determines that the contract or subcontract--
            (1) is within the scope of the pilot program (as described 
        in subsection (b)); and
            (2) is fairly and reasonably priced based on information 
        other than certified cost and pricing data.
    (f) Special Authority.--The authority provided under subsection (a) 
may include authority for the Secretary of Defense--
            (1) to apply any amendment or repeal of a provision of law 
        made in this Act to the pilot program before the effective date 
        of such amendment or repeal; and
            (2) to apply to a procurement of items other than 
        commercial items under such program--
                    (A) any authority provided in the Federal 
                Acquisition Streamlining Act of 1994 (Public Law 103-
                355) (or in an amendment made by a provision of that 
                Act) to waive a provision of law in the case of 
                commercial items, and
                    (B) any exception applicable under this Act or the 
                Federal Acquisition Streamlining Act of 1994 (Public 
                Law 103-355) (or an amendment made by a provision of 
                either Act) in the case of commercial items,
        before the effective date of such provision (or amendment) to 
        the extent that the Secretary determines necessary to test the 
        application of such waiver or exception to procurements of 
        items other than commercial items.
    (g) Applicability.--(1) Subsections (e) and (f) apply with respect 
to--
            (A) a contract that is awarded or modified during the 
        period described in paragraph (2); and
            (B) a contract that is awarded before the beginning of such 
        period and is to be performed (or may be performed), in whole 
        or in part, during such period.
    (2) The period referred to in paragraph (1) is the period that 
begins 45 days after the date of the enactment of this Act and ends on 
September 30, 1998.
    (h) Commercial Practices Encouraged.--With respect to contracts and 
subcontracts within the scope of the defense facility-wide pilot 
program, the Secretary of Defense may, to the extent the Secretary 
determines appropriate and in accordance with the law, adopt commercial 
practices in the administration of contracts and subcontracts. Such 
commercial practices may include elimination of Government audit and 
access to records provisions; incorporation of commercial oversight, 
inspection, and acceptance procedures; use of alternative dispute 
resolution techniques (including arbitration); and elimination of 
contract provisions authorizing the Government to make unilateral 
changes to contracts.
SEC. 317. VALUE ENGINEERING FOR FEDERAL AGENCIES.

    (a) Use of Value Engineering.--The Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.), as amended by section 310, is 
further amended by adding at the end the following new section:

``SEC. 37. VALUE ENGINEERING.

    ``(a) In General.--Each executive agency shall establish and 
maintain effective value engineering procedures and processes.
    ``(b) Threshold.--The procedures and processes established pursuant 
to subsection (a) shall be applied to those programs, projects, 
systems, and products of an executive agency that, in a ranking of all 
programs, projects, systems, and products of the agency according to 
greatest dollar value, are within the highest 20th percentile.
    ``(c) Definition.--As used in this section, the term `value 
engineering' means a team effort, performed by qualified agency or 
contractor personnel, directed at analyzing the functions of a program, 
project, system, product, item of equipment, building, facility, 
service, or supply for the purpose of achieving the essential functions 
at the lowest life-cycle cost that is consistent with required or 
improved performance, reliability, quality, and safety.''.
    (b) Clerical Amendment.--The table of contents for such Act, 
contained in section 1(b), is amended by adding at the end the 
following new item:

``Sec. 37. Value engineering.''.
SEC. 318. ACQUISITION WORKFORCE.

    (a) Acquisition Workforce.--(1) The Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.), as amended by section 317, is 
further amended by adding at the end the following new section:

``SEC. 38. ACQUISITION WORKFORCE.

    ``(a) Applicability.--This section does not apply to an executive 
agency that is subject to chapter 87 of title 10, United States Code.
    ``(b) Management Policies.--
            ``(1) Policies and procedures.--The head of each executive 
        agency, after consultation with the Administrator for Federal 
        Procurement Policy, shall establish policies and procedures for 
        the effective management (including accession, education, 
        training, career development, and performance incentives) of 
        the acquisition workforce of the agency. The development of 
        acquisition workforce policies under this section shall be 
        carried out consistent with the merit system principles set 
        forth in paragraphs (1) and (2) of section 2301(b) of title 5, 
        United States Code.
            ``(2) Uniform implementation.--The head of each executive 
        agency shall ensure that, to the maximum extent practicable, 
        acquisition workforce policies and procedures established are 
        uniform in their implementation throughout the agency.
            ``(3) Government-wide policies and evaluation.--The 
        Administrator shall issue policies to promote uniform 
        implementation of this section by executive agencies, with due 
        regard for differences in program requirements among agencies 
        that may be appropriate and warranted in view of the agency 
        mission. The Administrator shall coordinate with the Deputy 
        Director for Management of the Office of Management and Budget 
        to ensure that such policies are consistent with the policies 
        and procedures established and enhanced system of incentives 
        provided pursuant to section 5051(c) of the Federal Acquisition 
        Streamlining Act of 1994 (41 U.S.C. 263 note). The 
        Administrator shall evaluate the implementation of the 
        provisions of this section by executive agencies.
    ``(c) Senior Procurement Executive Authorities and 
Responsibilities.--Subject to the authority, direction, and control of 
the head of an executive agency, the senior procurement executive of 
the agency shall carry out all powers, functions, and duties of the 
head of the agency with respect to implementation of this section. The 
senior procurement executive shall ensure that the policies of the head 
of the executive agency established in accordance with this section are 
implemented throughout the agency.
    ``(d) Management Information Systems.--The Administrator shall 
ensure that the heads of executive agencies collect and maintain 
standardized information on the acquisition workforce related to 
implementation of this section. To the maximum extent practicable, such 
data requirements shall conform to standards established by the Office 
of Personnel Management for the Central Personnel Data File.
    ``(e) Acquisition Workforce.--The programs established by this 
section shall apply to all employees in the
 General Schedule Contracting series (GS-1102) and the General Schedule 
Purchasing series (GS-1105), and to any employees regardless of series 
who have been appointed as contracting officers whose authority exceeds 
the micro-purchase threshold, as that term is defined in section 32(g). 
The head of each executive agency may include employees in other series 
who perform acquisition or acquisition-related functions.
    ``(f) Career Development.--
            ``(1) Career paths.--The head of each executive agency 
        shall ensure that appropriate career paths for personnel who 
        desire to pursue careers in acquisition are identified in terms 
        of the education, training, experience, and assignments 
        necessary for career progression to the most senior acquisition 
        positions. The head of each executive agency shall make 
        information available on such career paths.
            ``(2) Critical duties and tasks.--For each career path, the 
        head of each executive agency shall identify the critical 
        acquisition-related duties and tasks in which, at minimum, 
        employees of the agency in the career path shall be competent 
        to perform at full performance grade levels. For this purpose, 
        the head of the executive agency shall provide appropriate 
        coverage of the critical duties and tasks identified by the 
        Director of the Federal Acquisition Institute.
            ``(3) Mandatory training and education.--For each career 
        path, the head of each executive agency shall establish 
        requirements for the completion of course work and related on-
        the-job training in the critical acquisition-related duties and 
        tasks of the career path. The head of each executive agency 
        shall also encourage employees to maintain the currency of 
        their acquisition knowledge and generally enhance their 
        knowledge of related acquisition management disciplines through 
        academic programs and other self-developmental activities.
            ``(4) Performance incentives.--The head of each executive 
        agency, acting through the senior procurement executive for the 
        agency, shall provide for an enhanced system of incentives for 
        the encouragement of excellence in the acquisition workforce 
        which rewards performance of employees that contribute to 
        achieving the agency's performance goals. The system of 
        incentives shall include provisions that--
                    ``(A) relate pay to performance;
                    ``(B) provide for consideration, in personnel 
                evaluations and promotion decisions, of the extent to 
                which the performance of personnel contributed to 
                achieving the agency's performance goals; and
                    ``(C) provide pay and promotion incentives to be 
                awarded, and unfavorable personnel actions to be 
                imposed, under the system on the basis of the 
                contributions of personnel to achieving the agency's 
                performance goals.
    ``(g) Qualification Requirements.--
            ``(1) General schedule contracting series (gs-1102).--
                    ``(A) Entry level qualifications.--The Director of 
                the Office of Personnel Management shall require that, 
                after October 1, 1996, a person may not be appointed to 
                a position in the GS-1102 occupational series unless 
                the person--
                            ``(i) has received a baccalaureate degree 
                        from an accredited educational institution 
                        authorized to grant baccalaureate degrees,
                            ``(ii) has completed at least 24 semester 
                        credit hours (or the equivalent) of study from 
                        an accredited institution of higher education 
                        in any of the following disciplines: 
                        accounting, business finance, law, contracts, 
                        purchasing, economics, industrial management, 
                        marketing, quantitative methods, or 
                        organization and management, or
                            ``(iii) has passed a written test 
                        determined by the Administrator for Federal 
                        Procurement Policy, after consultation with the 
                        Director of the Office of Personnel Management, 
                        to demonstrate the judgmental skills necessary 
                        for positions in this series.
                    ``(B) Qualifications for senior contracting 
                positions.--The Director of the Office of Personnel 
                Management shall require that, after October 1, 1996, 
                persons may be appointed to positions at and above full 
                performance grade levels in the GS-1102 occupational 
                series only if those persons--
                            ``(i) have satisfied the educational 
                        requirement either of subparagraph (A)(i) or 
                        (A)(ii),
                            ``(ii) have successfully completed all 
                        training required for the position under 
                        subsection (f)(3), and
                            ``(iii) have satisfied experience and other 
                        requirements established by the Director for 
                        such positions.
                However, this requirement shall apply to persons 
                employed on October 1, 1996, in GS-1102 positions at 
                those grade levels only as a prerequisite for promotion 
                to a GS-1102 position at a higher grade.
            ``(2) General schedule purchasing series (gs-1105).--The 
        Director of the Office of Personnel Management shall require 
        that, after October 1, 1996, a person may not be appointed to a 
        position in the GS-1105 occupational series unless the person--
                    ``(A) has successfully completed 2 years of course 
                work from an accredited educational institution 
                authorized to grant degrees, or
                    ``(B) has passed a written test determined by the 
                Administrator for Federal Procurement Policy, after 
                consultation with the Director of the Office of 
                Personnel Management, to demonstrate the judgmental 
                skills necessary for positions in this series.
            ``(3) Contracting officers.--The head of each executive 
        agency shall require that, beginning after October 1, 1996, a 
        person may be appointed as a contracting officer with authority 
        to award or administer contracts for amounts above the micro-
        purchase threshold, as that term is defined in section 32(g), 
        only if the person--
                    ``(A) has successfully completed all mandatory 
                training required of an employee in an equivalent GS-
                1102 or 1105 position under subsection (f)(3); and
                    ``(B) meets experience and other requirements 
                established by the head of the agency, based on the 
                dollar value and complexity of the contracts that the 
                employee will be authorized to award or administer 
                under the appointment as a contracting officer.
            ``(4) Exceptions.--(A) The requirements set forth in 
        paragraphs (1) and (2), as applicable, shall not apply to any 
        person employed in the GS-1102 or GS-1105 series on October 1, 
        1996.
            ``(B) Employees of an executive agency who do not satisfy 
        the full qualification requirements for appointment as a 
        contracting officer under paragraph (3) may be appointed as a 
        contracting officer for a temporary period of time under 
        procedures established by the agency head. The procedures 
        shall--
                    ``(i) require that the person have completed a 
                significant portion of the required training,
                    ``(ii) require a plan be established for the 
                balance of the required training,
                    ``(iii) specify a period of time for completion of 
                the training, and
                    ``(iv) include provisions for withdrawing or 
                terminating the appointment prior to the scheduled 
                expiration date, where appropriate.
            ``(5) Waiver.--The senior procurement executive for an 
        executive agency may waive any or all of the qualification 
        requirements of paragraphs (1) and (2) for a person if the 
        person possesses significant potential for advancement to 
        levels of greater responsibility and authority, based on 
        demonstrated job performance and qualifying experience. This 
        authority may not be redelegated by the senior procurement 
        executive. With respect to each waiver granted under this 
        subsection, the senior procurement executive shall set forth in 
        writing the rationale for the decision to waive such 
        requirements.
    ``(h) Program Establishment and Implementation.--
            ``(1) Funding levels.--(A) The head of an executive agency 
        shall request in the budget for a fiscal year for the agency--
                    ``(i) for education and training under this 
                section, an amount equal to no less than 2.5 percent of 
                the base aggregate salary cost of the acquisition 
                workforce subject to this section for that fiscal year; 
                and
                    ``(ii) for salaries of the acquisition workforce, 
                an amount equal to no more than 97.5 percent of such 
                base aggregate salary cost.
            ``(B) The head of the executive agency shall set forth 
        separately the funding levels requested in the budget 
        justification documents submitted in support of the President's 
        budget submitted to Congress under section 1105 of title 31, 
        United States Code.
            ``(C) Funds appropriated for education and training under 
        this section may not be obligated or used for any other 
        purpose.
            ``(2) Interagency agreements.--The head of an executive 
        agency may enter into a written agreement with another agency 
        to participate in programs established under this section on a 
        reimbursable basis.
            ``(3) Tuition assistance.--Notwithstanding the prohibition 
        in section 4107(b) of title 5, United States Code, the head of 
        each executive agency may provide for tuition reimbursement and 
        education (including a full-time course of study leading to a 
        degree) for acquisition personnel in the agency related to the 
        purposes of this section.
            ``(4) Intern programs.--The head of each executive agency 
        may establish intern programs in order to recruit highly 
        qualified and talented individuals and provide them with 
        opportunities for accelerated promotions, career broadening 
        assignments, and specified training for advancement to senior 
        acquisition positions. For such programs, the head of an 
        executive agency, without regard to the provisions of title 5, 
        United States Code, may appoint individuals to competitive GS-
        5, GS-7, or GS-9 positions in the General Schedule Contracting 
        series (GS-1102) who have graduated from baccalaureate or 
        master's programs in purchasing or contracting from accredited 
        educational institutions authorized to grant baccalaureate and 
        master's degrees.
            ``(5) Cooperative education program.--The head of each 
        executive agency may establish an agencywide cooperative 
        education credit program for acquisition positions. Under the 
        program, the head of the executive agency may enter into 
        cooperative arrangements with one or more accredited 
        institutions of higher education which provide for such 
        institutions to grant undergraduate credit for work performed 
        in such position.
            ``(6) Scholarship program.--
                    ``(A) Establishment.--Where deemed appropriate, the 
                head of each executive agency may establish a 
                scholarship program for the purpose of qualifying 
                individuals for acquisition positions in the agency.
                    ``(B) Eligibility.--To be eligible to participate 
                in a scholarship program established under this 
                paragraph by an executive agency, an individual must--
                            ``(i) be accepted for enrollment or be 
                        currently enrolled as a full-time student at an 
                        accredited educational institution authorized 
                        to grant baccalaureate or graduate degrees (as 
                        appropriate);
                            ``(ii) be pursuing a course of education 
                        that leads toward completion of a bachelor's, 
                        master's, or doctor's degree (as appropriate) 
                        in a qualifying field of study, as determined 
                        by the head of the agency;
                            ``(iii) sign an agreement described in 
                        subparagraph (C) under which the participant 
                        agrees to serve a period of obligated service 
                        in the agency in an acquisition position in 
                        return for payment of educational assistance as 
                        provided in the agreement; and
                            ``(iv) meet such other requirements as the 
                        head of the agency prescribes.
                    ``(C) Agreement.--An agreement between the head of 
                an executive agency and a participant in a scholarship 
                program established under this paragraph shall be in 
                writing, shall be signed by the participant, and shall 
                include the following provisions:
                            ``(i) The agreement of the head of the 
                        agency to provide the participant with 
                        educational assistance for a specified number 
                        of school years, not to exceed 4, during which 
                        the participant is pursuing a course of 
                        education in a qualifying field of study. The 
                        assistance may include payment of tuition, 
                        fees, books, laboratory expenses, and a 
                        stipend.
                            ``(ii) The participant's agreement--
                                    ``(I) to accept such educational 
                                assistance,
                                    ``(II) to maintain enrollment and 
                                attendance in the course of education 
                                until completed,
                                    ``(III) while enrolled in such 
                                course, to maintain an acceptable level 
                                of academic standing (as prescribed by 
                                the head of the agency), and
                                    ``(IV) after completion of the 
                                course of education, to serve as a 
                                full-time employee in an acquisition 
                                position in the agency for a period of 
                                time of one calendar year for each 
                                school year or part thereof for which 
                                the participant was provided a 
                                scholarship under the program.
                    ``(D) Repayment.--(i) Any person participating in a 
                program established under this paragraph shall agree to 
                pay to the United States the total amount of 
                educational assistance provided to the person under the 
                program if the person is voluntarily separated from the 
                agency or involuntarily separated for cause from the 
                agency before the end of the period for which the 
                person has agreed to continue in the service of the 
                agency in an acquisition position.
                    ``(ii) If an employee fails to fulfill the 
                agreement to pay to the Government the total amount of 
                educational assistance provided to the person under the 
                program, a sum equal to the amount of the educational 
                assistance may be recovered by the Government from the 
                employee (or the estate of the employee) by setoff 
                against accrued pay, compensation, amount of retirement 
                credit, or other amount due the employee from the 
                Government; and by such other method as is provided by 
                law for the recovery of amounts owing to the 
                Government.
                    ``(iii) The head of an executive agency may waive 
                in whole or in part a repayment required under this 
                paragraph if the head of the agency determines the 
                recovery would be against equity and good conscience or 
                would be contrary to the best interests of the United 
                States.
                    ``(E) Termination of agreement.--There shall be no 
                requirement that a position be offered to a person 
                after such person successfully completes a course of 
                education required by an agreement under this 
                paragraph. If no position is offered, the agreement 
                shall be considered terminated.''.
    (2) The table of contents for such Act, contained in section 1(b), 
is amended by adding at the end the following new item:

``Sec. 38. Acquisition workforce.''.
    (b) Additional Amendments.--Section 6(d)(5) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405), is amended--
            (1) in subparagraph (A), by striking out ``Government-wide 
        career management programs for a professional procurement work 
        force'' and inserting in lieu thereof ``the development of a 
        professional acquisition workforce Government-wide'';
            (2) in subparagraph (B)--
                    (A) by striking out ``procurement by the'' and 
                inserting in lieu thereof ``acquisition by the''; and
                    (B) by striking out ``and'' at the end of the 
                subparagraph; and
            (3) by striking out subparagraph (C) and inserting in lieu 
        thereof the following:
                    ``(C) administer the provisions of section 38;
                    ``(D) collect data and analyze acquisition 
                workforce data from the Office of Personnel Management, 
                the heads of executive agencies, and, through periodic 
                surveys, from individual employees;
                    ``(E) periodically analyze acquisition career 
                fields to identify critical competencies, duties, 
                tasks, and related academic prerequisites, skills, and 
                knowledge;
                    ``(F) coordinate and assist agencies in identifying 
                and recruiting highly qualified candidates for 
                acquisition fields;
                    ``(G) develop instructional materials for 
                acquisition personnel in coordination with private and 
                public acquisition colleges and training facilities;
                    ``(H) evaluate the effectiveness of training and 
                career development programs for acquisition personnel;
                    ``(I) promote the establishment and utilization of 
                academic programs by colleges and universities in 
                acquisition fields;
                    ``(J) facilitate, to the extent requested by 
                agencies, interagency intern and training programs; and
                    ``(K) perform other career management or research 
                functions as directed by the Administrator.''.
SEC. 319. DEMONSTRATION PROJECT RELATING TO CERTAIN PERSONNEL 
              MANAGEMENT POLICIES AND PROCEDURES.

    (a) Commencement.--The Secretary of Defense is encouraged to take 
such steps as may be necessary to provide for the commencement of a 
demonstration project, the purpose of which would be to determine the 
feasibility or desirability of one or more proposals for improving the 
personnel management policies or procedures that apply with respect to 
the acquisition workforce of the Department of Defense.
    (b) Terms and Conditions.--
            (1) In general.--Except as otherwise provided in this 
        subsection, any demonstration project described in subsection 
        (a) shall be subject to section 4703 of title 5, United States 
        Code, and all other provisions of such title that apply with 
        respect to any demonstration project under such section.
            (2) Exceptions.--Subject to paragraph (3), in applying 
        section 4703 of title 5, United States Code, with respect to a 
        demonstration project described in subsection (a)--
                    (A) ``180 days'' in subsection (b)(4) of such 
                section shall be deemed to read ``120 days'';
                    (B) ``90 days'' in subsection (b)(6) of such 
                section shall be deemed to read ``30 days''; and
                    (C) subsection (d)(1)(A) of such section shall be 
                disregarded.
            (3) Condition.--Paragraph (2) shall not apply with respect 
        to a demonstration project unless it--
                    (A) involves only the acquisition workforce of the 
                Department of Defense (or any part thereof); and
                    (B) commences during the 3-year period beginning on 
                the date of the enactment of this Act.
    (c) Definition.--For purposes of this section, the term 
``acquisition workforce'' refers to the persons serving in acquisition 
positions within the Department of Defense, as designated pursuant to 
section 1721(a) of title 10, United States Code.
SEC. 320. COOPERATIVE PURCHASING.

    (a) Delay in Opening Certain Federal Supply Schedules to Use by 
State, Local, and Indian Tribal Governments.--The Administrator of 
General Services may not use the authority of section 201(b)(2) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
481(b)(2)) to provide for the use of Federal supply schedules of the 
General Services Administration until after the later of--
            (1) the date on which the 14-month period beginning on the 
        date of the enactment of this Act expires; or
            (2) the date on which all of the following conditions are 
        met:
                    (A) The Administrator has considered the report of 
                the Comptroller General required by subsection (b).
                    (B) The Administrator has submitted comments on 
                such report to the congressional committees as required 
                by subsection (c).
                    (C) A period of 30 days after the date of 
                submission of such comments to the congressional 
                committees referred to in subsection (d) has expired.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Administrator of General Services and to the congressional committees 
referred to in subsection (d) a report on the implementation of section 
201(b) of the Federal Property and Administrative Services Act of 1949. 
The report shall include the following:
            (1) An assessment of the effect on industry, including 
        small businesses and local dealers, of providing for the use of 
        Federal supply schedules by the entities described in section 
        201(b)(2)(A) of the Federal Property and Administrative 
        Services Act of 1949.
            (2) An assessment of the effect on such entities of 
        providing for the use of Federal supply schedules by them.
    (c) Comments on Report by Administrator.--Not later than 30 days 
after receiving the report of the Comptroller General required by 
subsection (b), the Administrator of General Services shall submit to 
the congressional committees referred to in subsection (d) comments on 
the report, including the Administrator's comments on whether the 
Administrator plans to provide any Federal supply schedule for the use 
of any entity described in section 201(b)(2)(A) of the Federal Property 
and Administrative Services Act of 1949.
    (d) Congressional Committees.--The report required by subsection 
(b) and the comments required by subsection (c) shall be submitted to 
the Governmental Affairs Committee of the Senate and the Committee on 
Government Reform and Oversight of the House of Representatives.
    (e) Calculation of 30-Day Period.--For purposes of subsection 
(a)(2)(C), the calculation of the 30-day period shall exclude 
Saturdays, Sundays, and holidays, and any day on which neither House of 
Congress is in session because of an adjournment sine die, a recess of 
more than 3 days, or an adjournment of more than 3 days.
              TITLE IV--STREAMLINING OF DISPUTE RESOLUTION

                     Subtitle A--General Provisions

SEC. 401. DEFINITIONS.

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

                     ``TITLE II--DISPUTE RESOLUTION

                    ``Subtitle A--General Provisions

``SEC. 201. DEFINITIONS.

    ``In this title:
            ``(1) The term `Defense Board' means the Department of 
        Defense Board of Contract Appeals established pursuant to 
        section 8(a) of the Contract Disputes Act of 1978 (41 U.S.C. 
        607).
            ``(2) The term `Civilian Board' means the Civilian Board of 
        Contract Appeals established pursuant to section 8(b) of the 
        Contract Disputes Act of 1978 (41 U.S.C. 607).
            ``(3) The term `Board judge' means a member of the Defense 
        Board or the Civilian Board, as the case may be.
            ``(4) The term `Chairman' means the Chairman of the Defense 
        Board or the Civilian Board, as the case may be.
            ``(5) The term `Board concerned' means--
                    ``(A) the Defense Board with respect to matters 
                within its jurisdiction; and
                    ``(B) the Civilian Board with respect to matters 
                within its jurisdiction.
            ``(6) The term `executive agency'--
                    ``(A) with respect to contract disputes and 
                protests under the jurisdiction of the Defense Board, 
                means the Department of Defense, the Department of the 
                Army, the Department of the Navy, or the Department of 
                the Air Force; and
                    ``(B) with respect to contract disputes and 
                protests under the jurisdiction of the Civilian Board, 
                has the meaning given by section 4(1) of this Act 
                except that the term does not include the Department of 
                Defense, the Department of the Army, the Department of 
                the Navy, and the Department of the Air Force.
            ``(7) The term `alternative means of dispute resolution' 
        has the meaning given by section 571(3) of title 5, United 
        States Code.
            ``(8) 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.
            ``(9) 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.
            ``(10) The term `prevailing party', with respect to a 
        determination of the Board under section 214(h)(2) that a 
        decision of the head of an executive agency is arbitrary or 
        capricious or violates a statute or regulation, means a party 
        that showed that the decision was arbitrary or capricious or 
        violated a statute or regulation.''.
    (b) Conforming Amendments.--The Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.) is further amended--
            (1) by inserting the following before section 1:

           ``TITLE I--FEDERAL PROCUREMENT POLICY GENERALLY'';

        and
            (2) in section 4, by striking out ``As used in this Act:'' 
        and inserting in lieu thereof ``Except as otherwise 
        specifically provided, as used in this Act:''.

 Subtitle B--Establishment of Civilian and Defense Boards of Contract 
                                Appeals

SEC. 411. ESTABLISHMENT.

    Subsections (a) and (b) of section 8 of the Contract Disputes Act 
of 1978 (41 U.S.C. 607) are amended to read as follows:
    ``(a) There is established in the Department of Defense a board of 
contract appeals to be known as the Department of Defense Board of 
Contract Appeals.
    ``(b) There is established in the General Services Administration a 
board of contract appeals to be known as the Civilian Board of Contract 
Appeals.''.

SEC. 412. MEMBERSHIP.

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

``SEC. 202. MEMBERSHIP.

    ``(a) Appointment.--(1)(A) The Defense Board shall consist of 
judges appointed by the Secretary of Defense from a register of 
applicants maintained by the Defense Board, in accordance with rules 
issued by the Defense Board for establishing and maintaining a register 
of eligible applicants and selecting Defense Board judges. The 
Secretary shall appoint a judge without regard to political affiliation 
and solely on the basis of the professional qualifications required to 
perform the duties and responsibilities of a Defense Board judge.
    ``(B) The Civilian Board shall consist of judges appointed by the 
Administrator of General Services from a register of applicants 
maintained by the Civilian Board, in accordance with rules issued by 
the Civilian Board for establishing and maintaining a register of 
eligible applicants and selecting Civilian Board judges. The 
Administrator shall appoint a judge without regard to political 
affiliation and solely on the basis of the professional qualifications 
required to perform the duties and responsibilities of a Civilian Board 
judge.
    ``(2) The members of the Defense Board and the Civilian 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 of experience in public contract law.
    ``(3) Notwithstanding paragraph (2) and subject to subsection (b), 
the following persons shall serve as Board judges:
            ``(A) For the Defense Board, any full-time member of the 
        Armed Services Board of Contract Appeals serving as such on the 
        day before the effective date of this title.
            ``(B) For the Civilian Board, any full-time member of any 
        agency board of contract appeals other than the Armed Services 
        Board of Contract Appeals serving as such on the day before the 
        effective date of this title.
            ``(C) For either the Defense Board or the Civilian Board, 
        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 Defense Board and the Civilian 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 of the Defense 
Board and the Chairman of the Civilian Board and all other members of 
each Board shall be determined under section 5372a of title 5, United 
States Code.''.

SEC. 413. CHAIRMAN.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 412, is further amended by adding at the 
end the following:

``SEC. 203. CHAIRMAN.

    ``(a) Designation.--(1)(A) The Chairman of the Defense Board shall 
be designated by the Secretary of Defense to serve for a term of five 
years. The Secretary shall select the Chairman from among sitting 
judges each of whom has had at least five years of service--
            ``(i) as a member of the Armed Services Board of Contract 
        Appeals; or
            ``(ii) 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).
    ``(B) The Chairman of the Civilian Board shall be designated by the 
Administrator of General Services to serve for a term of five years. 
The Administrator shall select the Chairman from among sitting judges 
each of whom has had at least five years of service--
            ``(i) as a member of an agency board of contract appeals 
        other than the Armed Services Board of Contract Appeals; or
            ``(ii) 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 of a Board 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 of the Defense Board or the 
Civilian Board, as the case may be, 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 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.
            ``(4) 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 of the Defense Board or the 
Civilian Board, as the case may be, may designate up to four other 
Board judges as Vice Chairmen. The Chairman may divide the Board into 
two divisions, one for handling contract disputes and one for handling 
protests, 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.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 413, is further amended by adding at the 
end the following:

``SEC. 204. RULEMAKING AUTHORITY.

    ``(a) In General.--Except as provided by section 452 of the Federal 
Acquisition Reform Act of 1995, the Chairman of the Defense Board and 
the Chairman of the Civilian Board shall jointly issue and maintain--
            ``(1) such procedural rules and regulations as are 
        necessary to the exercise of the functions of the Boards under 
        sections 213 and 214; and
            ``(2) statements of policy of general applicability with 
        respect to such functions.
    ``(b) Board Procedures.--In issuing procedural rules and 
regulations for the exercise of the Boards' protest function under 
section 214, the Chairmen shall take due notice of executive agency 
procedures for the resolution of protests as a discretionary 
alternative to resolution of protests by the Boards and shall ensure 
that the rules and regulations governing the time for filing protests 
with the Boards make appropriate allowance for the use of such 
executive agency procedures by interested parties.''.

SEC. 415. AUTHORIZATION OF APPROPRIATIONS.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 414, is further amended by adding at the 
end the following:

``SEC. 205. 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. Funds for the activities of each Board 
shall be separately appropriated for such purpose. Funds appropriate 
pursuant to this section shall remain available until expended.''.

   Subtitle C--Functions of Defense and Civilian Boards of Contract 
                                Appeals

SEC. 421. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 415, is further amended by adding at the 
end the following:

``Subtitle B--Functions of the Defense and Civilian Boards of Contract 
                                Appeals

``SEC. 211. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

    ``(a) Requirement To Provide Services Upon Request.--The Defense 
Board and the Civilian Board shall each provide alternative means of 
dispute resolution for any disagreement regarding a contract or 
prospective contract of an executive agency upon the request of all 
parties to the disagreement.
    ``(b) Personnel Qualified To Act.--Each Board judge and each 
attorney employed by the Board concerned 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 concerned 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 concerned for alternative 
means of dispute resolution, pursuant to this section, later becomes 
the subject of formal proceedings before such Board, any Board judge or 
employee who was involved in the alternative means of dispute 
resolution 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 BOARDS.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 421, is further amended by adding at the 
end the following:

``SEC. 212. ALTERNATIVE DISPUTE RESOLUTION OF DISPUTES AND PROTESTS 
              SUBMITTED TO BOARDS.

    ``With reasonable promptness after the submission to the Defense 
Board or the Civilian Board of a contract dispute under section 213 or 
a bid protest under section 214, 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 concerned, 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 Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 422, is further amended by adding at the 
end the following:

``SEC. 213. CONTRACT DISPUTES.

    ``The Defense Board shall have jurisdiction as provided by section 
8(a) of the Contract Disputes Act of 1978 (41 U.S.C. 601-613). The 
Civilian Board shall have jurisdiction as provided by section 8(b) of 
such Act.''.

SEC. 424. PROTESTS.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 423, is further amended by adding at the 
end the following:

``SEC. 214. PROTESTS.

    ``(a) Review Required Upon Request.--Upon request of an interested 
party in connection with any procurement conducted by an executive 
agency, the Defense Board or the Civilian Board, as the case may be, 
shall review, as provided in this section, any decision by the head of 
the executive agency alleged to be arbitrary or capricious or to 
violate a statute or regulation. A decision or order of the Board 
concerned pursuant to this section shall not be subject to 
interlocutory appeal or review.
    ``(b) Standard of Review.--In deciding a protest, the Board 
concerned may consider all evidence that is relevant to the decision 
under protest. The protester may prevail only by showing that the 
decision was arbitrary or capricious or violated a statute or 
regulation.
    ``(c) Notification.--Within one day after the receipt of a protest, 
the Board concerned shall notify the executive agency involved of the 
protest.
    ``(d) Suspension of Contract Award.--(1) Except as provided in 
paragraph (2) of this subsection, a contract may not be awarded in any 
procurement after the executive agency has received notice of a protest 
with respect to such procurement from the Board concerned and while the 
protest is pending.
    ``(2) The head of the procuring activity responsible for award of a 
contract may authorize the award of the contract (notwithstanding a 
protest of which the executive agency has notice under this section)--
            ``(A) upon a written finding that urgent and compelling 
        circumstances which significantly affect interests of the 
        United States will not permit waiting for the decision of the 
        Board concerned under this section; and
            ``(B) after the Board concerned is advised of that finding.
    ``(3) A finding may not be made under paragraph (2)(A) of this 
subsection unless the award of the contract is otherwise likely to 
occur within 30 days after the making of such finding.
    ``(4) The suspension of the award under paragraph (1) shall not 
preclude the executive agency concerned from continuing the procurement 
process up to but not including the award of the contract.
    ``(e) Suspension of Contract Performance.--(1) A contractor awarded 
an executive agency contract may, during the period described in 
paragraph (4), begin performance of the contract and engage in any 
related activities that result in obligations being incurred by the 
United States under the contract unless the contracting officer 
responsible for the award of the contract withholds authorization to 
proceed with performance of the contract.
    ``(2) The contracting officer may withhold an authorization to 
proceed with performance of the contract during the period described in 
paragraph (4) if the contracting officer determines in writing that--
            ``(A) a protest is likely to be filed; and
            ``(B) the immediate performance of the contract is not in 
        the best interests of the United States.
    ``(3)(A) If the executive agency awarding the contract receives 
notice of a protest in accordance with this section during the period 
described in paragraph (4)--
            ``(i) the contracting officer may not authorize performance 
        of the contract to begin while the protest is pending; or
            ``(ii) if authorization for contract performance to proceed 
        was not withheld in accordance with paragraph (2) before 
        receipt of the notice, the contracting officer shall 
        immediately direct the contractor to cease performance under 
        the contract and to suspend any related activities that may 
        result in additional obligations being incurred by the United 
        States under that contract.
    ``(B) Performance and related activities suspended pursuant to 
subparagraph (A)(ii) by reason of a protest may not be resumed while 
the protest is pending.
    ``(C) The head of the procuring activity may authorize the 
performance of the contract (notwithstanding a protest of which the 
executive agency has notice under this section)--
            ``(i) upon a written finding that urgent and compelling 
        circumstances that significantly affect interests of the United 
        States will not permit waiting for the decision concerning the 
        protest by the Board concerned; and
            ``(ii) after the Board concerned is notified of that 
        finding.
    ``(4) The period referred to in paragraphs (2) and (3)(A), with 
respect to a contract, is the period beginning on the date of the 
contract award and ending on the later of--
            ``(A) the date that is 10 days after the date of the 
        contract award; or
            ``(B) the date that is 5 days after the debriefing date 
        offered to an unsuccessful offeror for any debriefing that is 
        requested and, when requested, is required.
    ``(f) The authority of the head of the procuring activity to make 
findings and to authorize the award and performance of contracts under 
subsections (d) and (e) of this section may not be delegated.
    ``(g) Procedures.--
            ``(1) Proceedings and discovery.--The Board concerned shall 
        conduct proceedings and allow discovery to the minimum extent 
        necessary for the expeditious, fair, and cost-effective 
        resolution of the protest. The Board shall allow discovery only 
        in a case in which the Board determines that the written 
        submissions of the parties do not provide an adequate basis for 
        a fair resolution of the protest. Such discovery shall be 
        limited 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.--The Board concerned shall give priority to 
        protests filed under this section over contract disputes and 
        alternative dispute services. Except as provided in paragraph 
        (3), the Board concerned 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 
        concerned 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.--(A) Except as provided in subparagraph 
        (B), 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 
        $30,000,000 shall be considered under simplified rules of 
        procedure. Such simplified rules shall provide that discovery 
        in such protests shall be in writing only. Such written 
        discovery shall be the minimum necessary for the expeditious, 
        fair, and cost-effective resolution of the protest and shall be 
        allowed only if the Board determines that the written 
        submissions of the parties do not provide an adequate basis for 
        a fair resolution of the protest. Such protests shall be 
        decided by a single Board judge. The Board concerned shall 
        issue its final decision in each such protest within 45 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 
        concerned shall issue such decision within the longer period 
        determined by the Chairman.
            ``(B) If the Chairman of the Board concerned determines 
        that special and unique circumstances of a protest that would 
        otherwise qualify for the simplified rules described in 
        subparagraph (A), including the complexity of a protest, 
        requires the use of full procedures as described in paragraphs 
        (1) and (2), the Chairman shall use such procedures in lieu of 
        the simplified rules described in subparagraph (A).
            ``(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 concerned 
        may dismiss a protest that the Board concerned determines--
                    ``(A) is frivolous,
                    ``(B) has been brought or pursued in bad faith; or
                    ``(C) does not state on its face a valid basis for 
                protest.
            ``(6) Payment of costs for frivolous protests.--(A) If the 
        Board concerned expressly finds that a protest or a portion of 
        a protest is frivolous or has been brought or pursued in bad 
        faith, the Board concerned shall declare that the protester or 
        other interested party who joins the protest is 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 
                concerned that establishes that the protest or a 
                portion of the protest is frivolous or has been brought 
                or pursued in bad faith, 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.
    ``(h) Decisions and Corrective Actions on Protests.--(1) In making 
a decision on protests filed under this section, the Board concerned 
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 concerned determines that a decision of the head 
of the executive agency is arbitrary or capricious or violates a 
statute or regulation, the Board concerned may order the agency (or its 
head) to take such corrective action as the Board concerned considers 
appropriate. Corrective action includes requiring that the executive 
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 requirements under 
        subparagraphs (A), (B), (C), (D), and (E); or
            ``(G) implement such other actions as the Board concerned 
        determines necessary.
    ``(3) If the Board concerned 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 concerned and shall be made a part of 
the public record (subject to any protective order considered 
appropriate by the Board concerned) before dismissal of the protest.
    ``(i) Authority To Declare Entitlement to Costs.--(1)(A) Whenever 
the Board concerned determines that a decision of the head of an 
executive agency is arbitrary or capricious or 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) consultant 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 concerned, 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 (h)(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.
    ``(j) Appeals.--A final decision of the Board concerned may be 
appealed as set forth in section 8(g)(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.
    ``(k) Additional Relief.--Nothing contained in this section shall 
affect the power of the Board concerned to order any additional relief 
which it is authorized to provide under any statute or regulation.
    ``(l) 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 CERTAIN CONTRACTS.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 424, is further amended by adding at the 
end the following:

``SEC. 215. APPLICABILITY TO CERTAIN CONTRACTS.

    ``(a) Contracts At or Below the Simplified Acquisition Threshold.--
Notwithstanding section 33 of this Act, the authority conferred on the 
Defense Board and the Civilian Board by this title is applicable to 
contracts in amounts not greater than the simplified acquisition 
threshold.
    ``(b) Contracts for Commercial Items.--Notwithstanding section 34 
of this Act, the authority conferred on the Defense Board and the 
Civilian 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.--(1) Subchapter V of chapter 35 of title 31, 
United States Code (31 U.S.C. 3551-3556) is repealed.
    (2) The analysis for chapter 35 of such title is amended by 
striking out the items relating to sections 3551 through 3556 and the 
heading for subchapter V.

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

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

    (a) Transfers.--
            (1) Armed services and corps boards of contract appeals.--
        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 Armed Services Board of Contract Appeals and the 
        board of contract appeals of the Corps of Engineers 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 
        described in section 451), shall be transferred to the 
        Department of Defense Board of Contract Appeals for appropriate 
        allocation by the Chairman of that Board.
            (2) Other boards of contracts appeals.--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 
        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 described in section 451) 
        other than the Armed Services Board of Contract Appeals, the 
        board of contract appeals of the Corps of Engineers, and the 
        Postal Service Board of Contract Appeals shall be transferred 
        to the Civilian Board of Contract Appeals for appropriate 
        allocation by the Chairman of that Board.
            (3) Comptroller general.--(A) One-quarter (as determined by 
        the Comptroller General) of the personnel employed in 
        connection with, and one-quarter (as determined by the 
        Comptroller General) of 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 (as in effect on the day before the 
        effective date described in section 451), shall be transferred 
        to the Civilian Board of Contract Appeals for appropriate 
        allocation by the Chairman of that Board.
            (B) Three-quarters (as determined by the Comptroller 
        General) of the personnel employed in connection with, and 
        three-quarters (as determined by the Comptroller General) of 
        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 
        (as in effect on the day before the effective date described in 
        section 451), shall be transferred to the Department of Defense 
        Board of Contract Appeals for appropriate allocation by the 
        Chairman of that Board.
    (b) Effect on Personnel.--Personnel transferred pursuant to this 
subtitle shall not be separated or reduced in compensation for one year 
after such transfer, except for cause.
    (c) Regulations.--(1) The Department of Defense Board of Contract 
Appeals and the Civilian Board of Contract Appeals shall each 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 concerned 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.--Effective on the 
effective date described in section 451, 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 such effective date) 
other than the Postal Service Board of Contract Appeals shall 
terminate.
    (b) Savings Provision for Contract Dispute Matters Pending Before 
Boards.--(1) This title and the amendments made by 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 described in section 451 before any board 
of contract appeals terminated by subsection (a).
    (2) In the case of any such proceedings pending before the Armed 
Services Board of Contract Appeals or the board of contract appeals of 
the Corps of Engineers, the proceedings shall be continued by the 
Department of Defense Board of Contract Appeals, and orders which were 
issued in any such proceeding by the Armed Services Board of Contract 
Appeals or the board of contract appeals of the Corps of Engineers 
shall continue in effect until modified, terminated, superseded, or 
revoked by the Department of Defense Board of Contract Appeals, by a 
court of competent jurisdiction, or by operation of law.
    (3) In the case of any such proceedings pending before an agency 
board of contract appeals other than the Armed Services Board of 
Contract Appeals or the board of contract appeals of the Corps of 
Engineers, the proceedings shall be continued by the Civilian Board of 
Contract Appeals, and orders which were issued in any such proceeding 
by the agency board shall continue in effect until modified, 
terminated, superseded, or revoked by the Civilian Board of Contract 
Appeals, 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 
described in section 451.
    (2)(A) In the case of bid protest proceedings pending before the 
board of contract appeals of the General Services Administration on the 
effective date described in section 451--
            (i) with respect to bid protests involving procurements of 
        the Department of Defense, the Department of the Army, the 
        Department of the Navy, and the Department of the Air Force, 
        the proceedings shall be continued by the Defense Board of 
        Contract Appeals; and
            (ii) with respect to bid protests involving procurements of 
        any other executive agency (as defined by section 4(1) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(1)), 
        the proceedings shall be continued by the Civilian Board of 
        Contract Appeals.
    (B) The provisions repealed by section 431(a) shall continue to 
apply to such proceedings until the Department of Defense Board of 
Contract Appeals or the Civilian Board of Contract Appeals, as the case 
may be, determines such proceedings have been completed.
    (3)(A) In the case of bid protest proceedings pending before the 
Comptroller General on the effective date described in section 451--
            (i) with respect to bid protests involving procurements of 
        the Department of Defense, the Department of the Army, the 
        Department of the Navy, and the Department of the Air Force, 
        the proceedings shall be continued by the Defense Board of 
        Contract Appeals;
            (ii) with respect to bid protests involving procurements of 
        any other executive agency (as defined by section 4(1) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(1)), 
        the proceedings shall be continued by the Civilian Board of 
        Contract Appeals; and
            (iii) with respect to bid protests involving procurements 
        of an entity that is not an executive agency, the proceedings 
        shall be continued by the Comptroller General.
    (B) The provisions repealed by section 431(b) shall continue to 
apply to such bid protest proceedings until the Department of Defense 
Board of Contract Appeals, the Civilian Board of Contract Appeals, or 
the Comptroller General, as the case may be, determines that such 
proceedings have been completed.

SEC. 443. CONTRACT DISPUTES AUTHORITY OF BOARDS.

    (a) Section 2 of the Contract Disputes Act of 1978 (41 U.S.C. 601) 
is amended--
            (1) in paragraph (2), by striking out ``, the United States 
        Postal Service, and the Postal Rate Commission'';
            (2) by amending paragraph (6) to read as follows:
            ``(6) the term `Defense Board' means the Department of 
        Defense Board of Contract Appeals established under section 
        8(a) of this Act;'';
            (3) by redesignating paragraph (7) as paragraph (8); and
            (4) by inserting after paragraph (6) the following new 
        paragraph (7):
            ``(7) the term `Civilian Board' means the Civilian Board of 
        Contract Appeals established under section 8(b) of this Act; 
        and''.
    (b) Section 6(c)(6) of the Contract Disputes Act of 1978 (41 U.S.C. 
605(c)(6)) is amended--
            (1) by striking out ``court or an agency board of contract 
        appeals'' and inserting in lieu thereof ``court, the Defense 
        Board, or the Civilian Board'';
            (2) by striking out ``an agency board of contract appeals'' 
        in the third sentence and inserting in lieu thereof ``the 
        Defense Board or the Civilian Board''; and
            (3) by striking out ``agency board'' and inserting in lieu 
        thereof ``the Board concerned''.
    (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 Defense Board or the Civilian Board''.
    (d) Section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607), 
as amended by section 411, is further amended--
            (1) by amending the heading to read as follows:

          ``defense and civilian boards of contract appeals'';

            (2) by striking out subsection (c);
            (3) in subsection (d)--
                    (A) by striking out the first sentence and 
                inserting in lieu thereof the following:
``The Defense Board shall have jurisdiction to decide any appeal from a 
decision of a contracting officer of the Department of Defense, the 
Department of the Army, the Department of the Navy, or the Department 
of the Air Force relative to a contract made by that department. The 
Civilian Board shall have jurisdiction to decide any appeal from a 
decision of a contracting officer of any executive agency (other than 
the Department of Defense, the Department of the Army, the Department 
of the Navy, the Department of the Air Force, the United States Postal 
Service, or the Postal Rate Commission) 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 concerned'';
            (4) in subsection (e), by striking out ``An agency board 
        shall provide'' and inserting in lieu thereof ``The Defense 
        Board and the Civilian Board shall each provide,'';
            (5) in subsection (f), by striking out ``each agency 
        board'' and inserting in lieu thereof ``the Defense Board and 
        the Civilian Board'';
            (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 Defense Board or 
                the Civilian Board, as the case may be,'';
                    (B) by striking out paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2); and
            (7) by striking out subsection (h) and inserting in lieu 
        thereof the following:
    ``(h) There is established an agency board of contract appeals to 
be known as the `Postal Service Board of Contract Appeals'. Such board 
shall have jurisdiction to decide any appeal from a decision of a 
contracting officer of the United States Postal Service or the Postal 
Rate Commission relative to a contract made by either agency. Such 
board shall consist of judges appointed by the Postmaster General who 
shall meet the qualifications of and serve in the same manner as judges 
of the Civilian Board of Contract Appeals. This Act and title II of the 
Office of Federal Procurement Policy Act shall apply to contract 
disputes before the Postal Service Board of Contract Appeals in the 
same manner as they apply to contract disputes before the Civilian 
Board.''; and
            (8) by striking out subsection (i).
    (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 Defense Board and 
        the Civilian Board''; and
            (2) in subsection (b), by striking out ``the agency board'' 
        and inserting in lieu thereof ``the Board concerned''.
    (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 Defense 
                        Board or the Civilian Board'';
                    (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)--
                    (A) by striking out ``any agency board'' and 
                inserting in lieu thereof ``the Defense Board or the 
                Civilian Board''; and
                    (B) by striking out ``the agency board'' and 
                inserting in lieu thereof ``the Board concerned'';
            (3) in subsection (c)--
                    (A) by striking out ``an agency board'' and 
                inserting in lieu of each ``the Defense Board or the 
                Civilian Board''; and
                    (B) by striking out ``the agency board'' and 
                inserting in lieu thereof ``the Board concerned''; and
            (4) in subsection (d)--
                    (A) by striking out ``one or more agency boards'' 
                and inserting in lieu thereof ``the Defense Board or 
                the Civilian Board (or both)''; and
                    (B) by striking out ``or among the agency boards 
                involved'' and inserting in lieu thereof ``one or both 
                of the Boards''.
    (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 
        Defense Board or the Civilian Board''; 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 Defense Board or the 
        Civilian 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 Defense 
        Board or the Civilian Board''; and
            (2) in subsection (d)(2), by striking out ``by the board of 
        contract appeals for'' and inserting in lieu thereof ``by the 
        Defense Board or the Civilian Board from''.

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

    (a) Defense Board.--Any reference to the Armed Services Board of 
Contract Appeals or the board of contract appeals of the Corps of 
Engineers in any provision of law or in any rule, regulation, or other 
paper of the United States shall be treated as referring to the 
Department of Defense Board of Contract Appeals.
    (b) Civilian Board.--Any reference to an agency board of contract 
appeals other than the Armed Services Board of Contract Appeals, the 
board of contract appeals of the Corps of Engineers, or the Postal 
Service 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 Civilian 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 
        Department of Defense Board of Contract Appeals or the Civilian 
        Board of Contract Appeals appointed under section 202 of the 
        Office of Federal Procurement Policy Act or the Postal Service 
        Board of Contract Appeals appointed under section 8(h) of the 
        Contract Disputes Act of 1978''; and
            (2) in subsection (a)(2), by striking out ``an agency board 
        of contract appeals'' and inserting in lieu thereof ``the 
        Department of Defense Board of Contract Appeals, the Civilian 
        Board of Contract Appeals, or the Postal Service Board of 
        Contract Appeals''.
    (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 
        II of the Office of Federal Procurement Policy Act''; and
            (B) by striking out paragraph (3).
    (2) Section 2305(f) of such title is amended--
            (A) in paragraph (1), by striking out ``subparagraphs (A) 
        through (F) of subsection (b)(1) of section 3554 of title 31'' 
        and inserting in lieu thereof ``section 214(h)(2) of the Office 
        of Federal Procurement Policy Act''; and
            (B) in paragraph (2), by striking out ``paragraph (1) of 
        section 3554(c) of title 31 within the limits referred to in 
        paragraph (2)'' and inserting in lieu thereof ``subparagraph 
        (A) of section 214(i)(1) of the Office of Federal Procurement 
        Policy Act within the limits referred to in subparagraph (B)''.
    (c) Federal Property and Administrative Services Act of 1949.--(1) 
Section 303B(j) (as redesignated by section 104(b)(2)) 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, United States Code'' and inserting in 
        lieu thereof ``title II of the Office of Federal Procurement 
        Policy Act''; and
            (B) by striking out paragraph (3).
    (2) Section 303B(k) (as redesignated by section 104(b)(2)) 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, United States Code'' and inserting in lieu thereof 
        ``section 214(h)(2) of the Office of Federal Procurement Policy 
        Act''; and
            (B) in paragraph (2), by striking out ``paragraph (1) of 
        section 3554(c) of such title within the limits referred to in 
        paragraph (2)'' and inserting in lieu thereof ``subparagraph 
        (A) of section 214(i)(1) of the Office of Federal Procurement 
        Policy Act within the limits referred to in subparagraph (B)''.
    (d) Office of Federal Procurement Policy Act.--The table of 
contents for the Office of Federal Procurement Policy Act (contained in 
section 1(b)) is amended--
            (1) by inserting the following before the item relating to 
        section 1:

         ``TITLE I--FEDERAL PROCUREMENT POLICY GENERALLY''; and
            (2) by adding at the end the following:

                     ``TITLE II--DISPUTE RESOLUTION

                    ``Subtitle A--General Provisions

``Sec. 201. Definitions.
``Sec. 202. Membership.
``Sec. 203. Chairman.
``Sec. 204. Rulemaking authority.
``Sec. 205. Authorization of appropriations.
``Subtitle B--Functions of the Defense and Civilian Boards of Contract 
                                Appeals

``Sec. 211. Alternative dispute resolution services.
``Sec. 212. Alternative dispute resolution of disputes and protests 
                            submitted to Boards.
``Sec. 213. Contract disputes.
``Sec. 214. Protests.
``Sec. 215. Applicability to certain contracts.''.
  Subtitle F--Effective Date; Regulations and Appointment of Chairmen

SEC. 451. EFFECTIVE DATE.

    Title II of the Office of Federal Procurement Policy Act, as added 
by this title, and the amendments and repeals made by this title shall 
take effect 1 year after the date of the enactment of this Act.

SEC. 452. REGULATIONS.

    (a) Regulations Regarding Protests and Claims.--Not later than 1 
year after the date of the enactment of this Act, the Chairman of the 
Armed Services Board of Contract Appeals and the Chairman of the 
General Services Board of Contract Appeals, in consultation with the 
Comptroller General with respect to protests, shall jointly issue--
            (1) such procedural rules and regulations as are necessary 
        to the exercise of the functions of the Department of Defense 
        Board of Contract Appeals and the Civilian Board of Contract 
        Appeals under sections 213 and 214 of the Office of Federal 
        Procurement Policy Act (as added by this title); and
            (2) statements of policy of general applicability with 
        respect to such functions.
    (b) Regulations Regarding Appointment of Judges.--Not later than 1 
year after the date of the enactment of this Act--
            (1) the Chairman of the Armed Services Board of Contract 
        Appeals shall issue rules governing the establishment and 
        maintenance of a register of eligible applicants and the 
        selection of judges for the Department of Defense Board of 
        Contract Appeals; and
            (2) the Chairman of the General Services Board of Contract 
        Appeals shall issue rules governing the establishment and 
        maintenance of a register of eligible applicants and the 
        selection of judges for the Civilian Board of Contract Appeals.

SEC. 453. APPOINTMENT OF CHAIRMEN OF DEFENSE BOARD AND CIVILIAN BOARD.

    Notwithstanding section 451, not later than 1 year after the date 
of the enactment of this Act--
            (1) the Secretary of Defense shall appoint the Chairman of 
        the Department of Defense Board of Contract Appeals; and
            (2) the Administrator of General Services shall appoint the 
        Chairman of the Civilian Board of Contract Appeals.
              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.
            Passed the House of Representatives September 14, 1995.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.
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