[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1107 Enrolled Bill (ENR)]

        H.R.1107

                      One Hundred Eleventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the fifth day of January, two thousand and ten


                                 An Act


 
 To enact certain laws relating to public contracts as title 41, United 
                   States Code, ``Public Contracts''.

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

SECTION 1. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1.  Table of contents.
Sec. 2.  Purpose; conformity with original intent.
Sec. 3.  Enactment of Title 41, United States Code.
Sec. 4.  Conforming amendment.
Sec. 5.  Conforming cross-references.
Sec. 6.  Transitional and savings provisions.
Sec. 7.  Repeals.

SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT.

  (a) Purpose.--The purpose of this Act is to enact certain laws 
relating to public contracts as title 41, United States Code, ``Public 
Contracts''.
  (b) Conformity With Original Intent.--In the codification of laws by 
this Act, the intent is to conform to the understood policy, intent, 
and purpose of Congress in the original enactments, with such 
amendments and corrections as will remove ambiguities, contradictions, 
and other imperfections, in accordance with section 205(c)(1) of House 
Resolution No. 988, 93d Congress, as enacted into law by Public Law 93-
554 (2 U.S.C. 285b(1)).

SEC. 3. ENACTMENT OF TITLE 41, UNITED STATES CODE.

  Certain general and permanent laws of the United States, related to 
public contracts, are revised, codified, and enacted as title 41, 
United States Code, ``Public Contracts'', as follows:

                       TITLE 41--PUBLIC CONTRACTS

Subtitle                                                            Sec.

FEDERAL PROCUREMENT POLICY...........................................101
OTHER ADVERTISING AND CONTRACT PROVISIONS...........................6101
CONTRACT DISPUTES...................................................7101
MISCELLANEOUS.......................................................8101

                 Subtitle I--Federal Procurement Policy

                          Division A--General

Chapter                                                             Sec.

Definitions..........................................................101

            Division B--Office of Federal Procurement Policy

Establishment of Office and Authority and Functions of Administrator1101
Acquisition Councils................................................1301
Cost Accounting Standards...........................................1501
Agency Responsibilities and Procedures..............................1701
Simplified Acquisition Procedures...................................1901
Restrictions on Obtaining and Disclosing Certain Information........2101
Miscellaneous.......................................................2301

                        Division C--Procurement

General.............................................................3101
Planning and Solicitation...........................................3301
Truthful Cost or Pricing Data.......................................3501
Awarding of Contracts...............................................3701
Specific Types of Contracts.........................................3901
Task and Delivery Order Contracts...................................4101
Allowable Costs.....................................................4301
Contract Financing..................................................4501
Miscellaneous.......................................................4701

                          Division A--General

                         CHAPTER 1--DEFINITIONS

                   SUBCHAPTER I--SUBTITLE DEFINITIONS

Sec.
101.  Administrator.
102.  Commercial component.
103.  Commercial item.
104.  Commercially available off-the-shelf item.
105.  Component.
106.  Federal Acquisition Regulation.
107.  Full and open competition.
108.  Item and item of supply.
109.  Major system.
110.  Nondevelopmental item.
111.  Procurement.
112.  Procurement system.
113.  Responsible source.
114.  Standards.
115.  Supplies.
116.  Technical data.

                  SUBCHAPTER II--DIVISION B DEFINITIONS

131.  Acquisition.
132.  Competitive procedures.
133.  Executive agency.
134.  Simplified acquisition threshold.

                 SUBCHAPTER III--DIVISION C DEFINITIONS

151.  Agency head.
152.  Competitive procedures.
153.  Simplified acquisition threshold for contract in support of 
          humanitarian or peacekeeping operation.

                   SUBCHAPTER I--SUBTITLE DEFINITIONS

Sec. 101. Administrator

  In this subtitle, the term ``Administrator'' means the Administrator 
for Federal Procurement Policy appointed under section 1102 of this 
title.

Sec. 102. Commercial component

  In this subtitle, the term ``commercial component'' means a component 
that is a commercial item.

Sec. 103. Commercial item

  In this subtitle, the term ``commercial item'' means--
      (1) an item, other than real property, that--
          (A) is of a type customarily used by the general public or by 
        nongovernmental entities for purposes other than governmental 
        purposes; and
          (B) has been sold, leased, or licensed, or offered for sale, 
        lease, or license, to the general public;
      (2) an item that--
          (A) evolved from an item described in paragraph (1) through 
        advances in technology or performance; and
          (B) is not yet available in the commercial marketplace but 
        will be available in the commercial marketplace in time to 
        satisfy the delivery requirements under a Federal Government 
        solicitation;
      (3) an item that would satisfy the criteria in paragraph (1) or 
    (2) were it not for--
          (A) modifications of a type customarily available in the 
        commercial marketplace; or
          (B) minor modifications made to meet Federal Government 
        requirements;
      (4) any combination of items meeting the requirements of 
    paragraph (1), (2), (3), or (5) that are of a type customarily 
    combined and sold in combination to the general public;
      (5) installation services, maintenance services, repair services, 
    training services, and other services if--
          (A) those services are procured for support of an item 
        referred to in paragraph (1), (2), (3), or (4), regardless of 
        whether the services are provided by the same source or at the 
        same time as the item; and
          (B) the source of the services provides similar services 
        contemporaneously to the general public under terms and 
        conditions similar to those offered to the Federal Government;
      (6) services offered and sold competitively, in substantial 
    quantities, in the commercial marketplace based on established 
    catalog or market prices for specific tasks performed or specific 
    outcomes to be achieved and under standard commercial terms and 
    conditions;
      (7) any item, combination of items, or service referred to in 
    paragraphs (1) to (6) even though the item, combination of items, 
    or service is transferred between or among separate divisions, 
    subsidiaries, or affiliates of a contractor; or
      (8) a nondevelopmental item if the procuring agency determines, 
    in accordance with conditions in the Federal Acquisition 
    Regulation, that the item was developed exclusively at private 
    expense and has been sold in substantial quantities, on a 
    competitive basis, to multiple State and local governments.

Sec. 104. Commercially available off-the-shelf item

  In this subtitle, the term ``commercially available off-the-shelf 
item''--
      (1) means an item that--
          (A) is a commercial item (as described in section 103(1) of 
        this title);
          (B) is sold in substantial quantities in the commercial 
        marketplace; and
          (C) is offered to the Federal Government, without 
        modification, in the same form in which it is sold in the 
        commercial marketplace; but
      (2) does not include bulk cargo, as defined in section 40102(4) 
    of title 46, such as agricultural products and petroleum products.

Sec. 105. Component

  In this subtitle, the term ``component'' means an item supplied to 
the Federal Government as part of an end item or of another component.

Sec. 106. Federal Acquisition Regulation

  In this subtitle, the term ``Federal Acquisition Regulation'' means 
the regulation issued under section 1303(a)(1) of this title.

Sec. 107. Full and open competition

  In this subtitle, the term ``full and open competition'', when used 
with respect to a procurement, means that all responsible sources are 
permitted to submit sealed bids or competitive proposals on the 
procurement.

Sec. 108. Item and item of supply

  In this subtitle, the terms ``item'' and ``item of supply''--
      (1) mean an individual part, component, subassembly, assembly, or 
    subsystem integral to a major system, and other property which may 
    be replaced during the service life of the system, including spare 
    parts and replenishment spare parts; but
      (2) do not include packaging or labeling associated with shipment 
    or identification of an item.

Sec. 109. Major system

  (a) In General.--In this subtitle, the term ``major system'' means a 
combination of elements that will function together to produce the 
capabilities required to fulfill a mission need. These elements may 
include hardware, equipment, software, or a combination of hardware, 
equipment, and software, but do not include construction or other 
improvements to real property.
  (b) System Deemed To Be Major System.--A system is deemed to be a 
major system if--
      (1) the Department of Defense is responsible for the system and 
    the total expenditures for research, development, testing, and 
    evaluation for the system are estimated to exceed $75,000,000 
    (based on fiscal year 1980 constant dollars) or the eventual total 
    expenditure for procurement exceeds $300,000,000 (based on fiscal 
    year 1980 constant dollars);
      (2) a civilian agency is responsible for the system and total 
    expenditures for the system are estimated to exceed the greater of 
    $750,000 (based on fiscal year 1980 constant dollars) or the dollar 
    threshold for a major system established by the agency pursuant to 
    Office of Management and Budget (OMB) Circular A-109, entitled 
    ``Major Systems Acquisitions''; or
      (3) the head of the agency responsible for the system designates 
    the system a major system.

Sec. 110. Nondevelopmental item

  In this subtitle, the term ``nondevelopmental item'' means--
      (1) a commercial item;
      (2) a previously developed item of supply that is in use by a 
    department or agency of the Federal Government, a State or local 
    government, or a foreign government with which the United States 
    has a mutual defense cooperation agreement;
      (3) an item of supply described in paragraph (1) or (2) that 
    requires only minor modification or modification of the type 
    customarily available in the commercial marketplace to meet the 
    requirements of the procuring department or agency; or
      (4) an item of supply currently being produced that does not meet 
    the requirements of paragraph (1), (2), or (3) solely because the 
    item is not yet in use.

Sec. 111. Procurement

  In this subtitle, the term ``procurement'' includes all stages of the 
process of acquiring property or services, beginning with the process 
for determining a need for property or services and ending with 
contract completion and closeout.

Sec. 112. Procurement system

  In this subtitle, the term ``procurement system'' means the 
integration of the procurement process, the professional development of 
procurement personnel, and the management structure for carrying out 
the procurement function.

Sec. 113. Responsible source

  In this subtitle, the term ``responsible source'' means a prospective 
contractor that--
      (1) has adequate financial resources to perform the contract or 
    the ability to obtain those resources;
      (2) is able to comply with the required or proposed delivery or 
    performance schedule, taking into consideration all existing 
    commercial and Government business commitments;
      (3) has a satisfactory performance record;
      (4) has a satisfactory record of integrity and business ethics;
      (5) has the necessary organization, experience, accounting and 
    operational controls, and technical skills, or the ability to 
    obtain the organization, experience, controls, and skills;
      (6) has the necessary production, construction, and technical 
    equipment and facilities, or the ability to obtain the equipment 
    and facilities; and
      (7) is otherwise qualified and eligible to receive an award under 
    applicable laws and regulations.

Sec. 114. Standards

  In this subtitle, the term ``standards'' means the criteria for 
determining the effectiveness of the procurement system by measuring 
the performance of the various elements of the system.

Sec. 115. Supplies

  In this subtitle, the term ``supplies'' has the same meaning as the 
terms ``item'' and ``item of supply''.

Sec. 116. Technical data

  In this subtitle, the term ``technical data''--
      (1) means recorded information (regardless of the form or method 
    of the recording) of a scientific or technical nature (including 
    computer software documentation) relating to supplies procured by 
    an agency; but
      (2) does not include computer software or financial, 
    administrative, cost or pricing, or management data or other 
    information incidental to contract administration.

                 SUBCHAPTER II--DIVISION B DEFINITIONS

Sec. 131. Acquisition

  In division B, the term ``acquisition''--
      (1) means the process of acquiring, with appropriated amounts, by 
    contract for purchase or lease, property or services (including 
    construction) that support the missions and goals of an executive 
    agency, from the point at which the requirements of the executive 
    agency are established in consultation with the chief acquisition 
    officer of the executive agency; and
      (2) includes--
          (A) the process of acquiring property or services that are 
        already in existence, or that must be created, developed, 
        demonstrated, and evaluated;
          (B) the description of requirements to satisfy agency needs;
          (C) solicitation and selection of sources;
          (D) award of contracts;
          (E) contract performance;
          (F) contract financing;
          (G) management and measurement of contract performance 
        through final delivery and payment; and
          (H) technical and management functions directly related to 
        the process of fulfilling agency requirements by contract.

Sec. 132. Competitive procedures

  In division B, the term ``competitive procedures'' means procedures 
under which an agency enters into a contract pursuant to full and open 
competition.

Sec. 133. Executive agency

  In division B, the term ``executive agency'' means--
      (1) an executive department specified in section 101 of title 5;
      (2) a military department specified in section 102 of title 5;
      (3) an independent establishment as defined in section 104(1) of 
    title 5; and
      (4) a wholly owned Government corporation fully subject to 
    chapter 91 of title 31.

Sec. 134. Simplified acquisition threshold

  In division B, the term ``simplified acquisition threshold'' means 
$100,000.

                 SUBCHAPTER III--DIVISION C DEFINITIONS

Sec. 151. Agency head

  In division C, the term ``agency head'' means the head or any 
assistant head of an executive agency, and may at the option of the 
Administrator of General Services include the chief official of any 
principal organizational unit of the General Services Administration.

Sec. 152. Competitive procedures

  In division C, the term ``competitive procedures'' means procedures 
under which an executive agency enters into a contract pursuant to full 
and open competition. The term also includes--
      (1) procurement of architectural or engineering services 
    conducted in accordance with chapter 11 of title 40;
      (2) the competitive selection of basic research proposals 
    resulting from a general solicitation and the peer review or 
    scientific review (as appropriate) of those proposals;
      (3) the procedures established by the Administrator of General 
    Services for the multiple awards schedule program of the General 
    Services Administration if--
          (A) participation in the program has been open to all 
        responsible sources; and
          (B) orders and contracts under those procedures result in the 
        lowest overall cost alternative to meet the needs of the 
        Federal Government;
      (4) procurements conducted in furtherance of section 15 of the 
    Small Business Act (15 U.S.C. 644) as long as all responsible 
    business concerns that are entitled to submit offers for those 
    procurements are permitted to compete; and
      (5) a competitive selection of research proposals resulting from 
    a general solicitation and peer review or scientific review (as 
    appropriate) solicited pursuant to section 9 of that Act (15 U.S.C. 
    638).

Sec. 153. Simplified acquisition threshold for contract in support of 
            humanitarian or peacekeeping operation

  (1) In general.--In division C, the term ``simplified acquisition 
threshold'' has the meaning provided that term in section 134 of this 
title, except that, in the case of a contract to be awarded and 
performed, or purchase to be made, outside the United States in support 
of a humanitarian or peacekeeping operation, the term means an amount 
equal to two times the amount specified for that term in section 134 of 
this title.
  (2) Definition.--In paragraph (1), the term ``humanitarian or 
peacekeeping operation'' means a military operation in support of the 
provision of humanitarian or foreign disaster assistance or in support 
of a peacekeeping operation under chapter VI or VII of the Charter of 
the United Nations. The term does not include routine training, force 
rotation, or stationing.

            Division B--Office of Federal Procurement Policy

  CHAPTER 11--ESTABLISHMENT OF OFFICE AND AUTHORITY AND FUNCTIONS OF 
                             ADMINISTRATOR

                          SUBCHAPTER I--GENERAL

Sec.
1101.  Office of Federal Procurement Policy.
1102.  Administrator.

       SUBCHAPTER II--AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR

1121.  General authority.
1122.  Functions.
1123.  Small business concerns.
1124.  Tests of innovative procurement methods and procedures.
1125.  Recipients of Federal grants or assistance.
1126.  Policy regarding consideration of contractor past performance.
1127.  Determining benchmark compensation amount.
1128.  Maintaining necessary capability with respect to acquisition of 
          architectural and engineering services.
1129.  Center of excellence in contracting for services.
1130.  Effect of division on other law.
1131.  Annual report.

                         SUBCHAPTER I--GENERAL

Sec. 1101. Office of Federal Procurement Policy

  (a) Organization.--There is an Office of Federal Procurement Policy 
in the Office of Management and Budget.
  (b) Purposes.--The purposes of the Office of Federal Procurement 
Policy are to--
      (1) provide overall direction of Government-wide procurement 
    policies, regulations, procedures, and forms for executive 
    agencies; and
      (2) promote economy, efficiency, and effectiveness in the 
    procurement of property and services by the executive branch of the 
    Federal Government.
  (c) Authorization of Appropriations.--Necessary amounts may be 
appropriated each fiscal year for the Office of Federal Procurement 
Policy to carry out the responsibilities of the Office for that fiscal 
year.

Sec. 1102. Administrator

  (a) Head of Office.--The head of the Office of Federal Procurement 
Policy is the Administrator for Federal Procurement Policy.
  (b) Appointment.--The Administrator is appointed by the President, by 
and with the advice and consent of the Senate.

      SUBCHAPTER II--AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR

Sec. 1121. General authority

  (a) Overall Direction and Leadership.--The Administrator shall 
provide overall direction of procurement policy and leadership in the 
development of procurement systems of the executive agencies.
  (b) Federal Acquisition Regulation.--To the extent that the 
Administrator considers appropriate in carrying out the policies and 
functions set forth in this division, and with due regard for 
applicable laws and the program activities of the executive agencies, 
the Administrator may prescribe Government-wide procurement policies. 
The policies shall be implemented in a single Government-wide 
procurement regulation called the Federal Acquisition Regulation.
  (c) Policies To Be Followed by Executive Agencies.--
      (1) Areas of procurement for which policies are to be followed.--
    The policies implemented in the Federal Acquisition Regulation 
    shall be followed by executive agencies in the procurement of--
          (A) property other than real property in being;
          (B) services, including research and development; and
          (C) construction, alteration, repair, or maintenance of real 
        property.
      (2) Procedures to ensure compliance.--The Administrator shall 
    establish procedures to ensure compliance with the Federal 
    Acquisition Regulation by all executive agencies.
      (3) Application of other laws.--The authority of an executive 
    agency under another law to prescribe policies, regulations, 
    procedures, and forms for procurement is subject to the authority 
    conferred in this section and sections 1122(a) to (c)(1), 1125, 
    1126, 1130, 1131, and 2305 of this title.
  (d) When Certain Agencies Are Unable To Agree or Fail To Act.--In any 
instance in which the Administrator determines that the Department of 
Defense, the National Aeronautics and Space Administration, and the 
General Services Administration are unable to agree on or fail to issue 
Government-wide regulations, procedures, and forms in a timely manner, 
including regulations, procedures, and forms necessary to implement 
prescribed policy the Administrator initiates under subsection (b), the 
Administrator, with due regard for applicable laws and the program 
activities of the executive agencies and consistent with the policies 
and functions set forth in this division, shall prescribe Government-
wide regulations, procedures, and forms which executive agencies shall 
follow in procuring items listed in subsection (c)(1).
  (e) Oversight of Procurement Regulations of Other Agencies.--The 
Administrator, with the concurrence of the Director of the Office of 
Management and Budget, and with consultation with the head of the 
agency concerned, may deny the promulgation of or rescind any 
Government-wide regulation or final rule or regulation of any executive 
agency relating to procurement if the Administrator determines that the 
rule or regulation is inconsistent with any policies, regulations, or 
procedures issued pursuant to subsection (b).
  (f) Limitation on Authority.--The authority of the Administrator 
under this division shall not be construed to--
      (1) impair or interfere with the determination by executive 
    agencies of their need for, or their use of, specific property, 
    services, or construction, including particular specifications for 
    the property, services, or construction; or
      (2) interfere with the determination by executive agencies of 
    specific actions in the award or administration of procurement 
    contracts.

Sec. 1122. Functions

  (a) In General.--The functions of the Administrator include--
      (1) providing leadership and ensuring action by the executive 
    agencies in establishing, developing, and maintaining the single 
    system of simplified Government-wide procurement regulations and 
    resolving differences among the executive agencies in developing 
    simplified Government-wide procurement regulations, procedures, and 
    forms;
      (2) coordinating the development of Government-wide procurement 
    system standards that executive agencies shall implement in their 
    procurement systems;
      (3) providing leadership and coordination in formulating the 
    executive branch position on legislation relating to procurement;
      (4)(A) providing for and directing the activities of the 
    computer-based Federal Procurement Data System (including 
    recommending to the Administrator of General Services a sufficient 
    budget for those activities), which shall be located in the General 
    Services Administration, in order to adequately collect, develop, 
    and disseminate procurement data; and
      (B) ensuring executive agency compliance with the record 
    requirements of section 1712 of this title;
      (5) providing for and directing the activities of the Federal 
    Acquisition Institute (including recommending to the Administrator 
    of General Services a sufficient budget for those activities), 
    which shall be located in the General Services Administration, in 
    order to--
          (A) foster and promote the development of a professional 
        acquisition workforce Government-wide;
          (B) promote and coordinate Government-wide research and 
        studies to improve the procurement process and the laws, 
        policies, methods, regulations, procedures, and forms relating 
        to acquisition by the executive agencies;
          (C) collect data and analyze acquisition workforce data from 
        the Office of Personnel Management, from the heads of executive 
        agencies, and, through periodic surveys, from individual 
        employees;
          (D) periodically analyze acquisition career fields to 
        identify critical competencies, duties, tasks, and related 
        academic prerequisites, skills, and knowledge;
          (E) coordinate and assist agencies in identifying and 
        recruiting highly qualified candidates for acquisition fields;
          (F) develop instructional materials for acquisition personnel 
        in coordination with private and public acquisition colleges 
        and training facilities;
          (G) evaluate the effectiveness of training and career 
        development programs for acquisition personnel;
          (H) promote the establishment and utilization of academic 
        programs by colleges and universities in acquisition fields;
          (I) facilitate, to the extent requested by agencies, 
        interagency intern and training programs; and
          (J) perform other career management or research functions as 
        directed by the Administrator;
      (6) administering section 1703(a) to (i) of this title;
      (7) establishing criteria and procedures to ensure the effective 
    and timely solicitation of the viewpoints of interested parties in 
    the development of procurement policies, regulations, procedures, 
    and forms;
      (8) developing standard contract forms and contract language in 
    order to reduce the Federal Government's cost of procuring property 
    and services and the private sector's cost of doing business with 
    the Federal Government;
      (9) providing for a Government-wide award to recognize and 
    promote vendor excellence;
      (10) providing for a Government-wide award to recognize and 
    promote excellence in officers and employees of the Federal 
    Government serving in procurement-related positions;
      (11) developing policies, in consultation with the Administrator 
    of the Small Business Administration, that ensure that small 
    businesses, qualified HUBZone small business concerns (as defined 
    in section 3(p) of the Small Business Act (15 U.S.C. 632(p))), 
    small businesses owned and controlled by socially and economically 
    disadvantaged individuals, and small businesses owned and 
    controlled by women are provided with the maximum practicable 
    opportunities to participate in procurements that are conducted for 
    amounts below the simplified acquisition threshold;
      (12) developing policies that will promote achievement of goals 
    for participation by small businesses, small business concerns 
    owned and controlled by service-disabled veterans, qualified 
    HUBZone small business concerns (as defined in section 3(p) of the 
    Small Business Act (15 U.S.C. 632(p))), small businesses owned and 
    controlled by socially and economically disadvantaged individuals, 
    and small businesses owned and controlled by women; and
      (13) completing action, as appropriate, on the recommendations of 
    the Commission on Government Procurement.
  (b) Consultation and Assistance.--In carrying out the functions in 
subsection (a), the Administrator--
      (1) shall consult with the affected executive agencies, including 
    the Small Business Administration;
      (2) with the concurrence of the heads of affected executive 
    agencies, may designate one or more executive agencies to assist in 
    performing those functions; and
      (3) may establish advisory committees or other interagency groups 
    to assist in providing for the establishment, development, and 
    maintenance of a single system of simplified Government-wide 
    procurement regulations and to assist in performing any other 
    function the Administrator considers appropriate.
  (c) Assignment, Delegation, or Transfer.--
      (1) To administrator.--Except as otherwise provided by law, only 
    duties, functions, or responsibilities expressly assigned by this 
    division shall be assigned, delegated, or transferred to the 
    Administrator.
      (2) By administrator.--
          (A) Within office.--The Administrator may make and authorize 
        delegations within the Office of Federal Procurement Policy 
        that the Administrator determines to be necessary to carry out 
        this division.
          (B) To another executive agency.--The Administrator may 
        delegate, and authorize successive redelegations of, an 
        authority, function, or power of the Administrator under this 
        division (other than the authority to provide overall direction 
        of Federal procurement policy and to prescribe policies and 
        regulations to carry out the policy) to another executive 
        agency with the consent of the head of the executive agency or 
        at the direction of the President.

Sec. 1123. Small business concerns

  In formulating the Federal Acquisition Regulation and procedures to 
ensure compliance with the Regulation, the Administrator, in 
consultation with the Small Business Administration, shall--
      (1) conduct analyses of the impact on small business concerns 
    resulting from revised procurement regulations; and
      (2) incorporate into revised procurement regulations simplified 
    bidding, contract performance, and contract administration 
    procedures for small business concerns.

Sec. 1124. Tests of innovative procurement methods and procedures

  (a) In General.--The Administrator may develop innovative procurement 
methods and procedures to be tested by selected executive agencies. In 
developing a program to test innovative procurement methods and 
procedures under this subsection, the Administrator shall consult with 
the heads of executive agencies to--
      (1) ascertain the need for and specify the objectives of the 
    program;
      (2) develop the guidelines and procedures for carrying out the 
    program and the criteria to be used in measuring the success of the 
    program;
      (3) evaluate the potential costs and benefits which may be 
    derived from the innovative procurement methods and procedures 
    tested under the program;
      (4) select the appropriate executive agencies or components of 
    executive agencies to carry out the program;
      (5) specify the categories and types of products or services to 
    be procured under the program; and
      (6) develop the methods to be used to analyze the results of the 
    program.
  (b) Approval of Executive Agencies Required.--A program to test 
innovative procurement methods and procedures may not be carried out 
unless approved by the heads of the executive agencies selected to 
carry out the program.
  (c) Request for Waiver of Law.--If the Administrator determines that 
it is necessary to waive the application of a provision of law to carry 
out a proposed program to test innovative procurement methods and 
procedures under subsection (a), the Administrator shall transmit 
notice of the proposed program to the Committee on Oversight and 
Government Reform of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate and request 
that the Committees take the necessary action to provide that the 
provision of law does not apply with respect to the proposed program. 
The notification to Congress shall include--
      (1) a description of the proposed program (including the scope 
    and purpose of the proposed program);
      (2) the procedures to be followed in carrying out the proposed 
    program;
      (3) the provisions of law affected and the application of any 
    provision of law that must be waived in order to carry out the 
    proposed program; and
      (4) the executive agencies involved in carrying out the proposed 
    program.

Sec. 1125. Recipients of Federal grants or assistance

  (a) Authority.--With due regard to applicable laws and the program 
activities of the executive agencies administering Federal programs of 
grants or assistance, the Administrator may prescribe Government-wide 
policies, regulations, procedures, and forms that the Administrator 
considers appropriate and that executive agencies shall follow in 
providing for the procurement, to the extent required under those 
programs, of property or services referred to in section 1121(c)(1) of 
this title by recipients of Federal grants or assistance under the 
programs.
  (b) Limitation.--Subsection (a) does not--
      (1) permit the Administrator to authorize procurement or supply 
    support, either directly or indirectly, to a recipient of a Federal 
    grant or assistance; or
      (2) authorize action by a recipient contrary to State and local 
    law in the case of a program to provide a Federal grant or 
    assistance to a State or political subdivision.

Sec. 1126. Policy regarding consideration of contractor past 
            performance

  (a) Guidance.--The Administrator shall prescribe for executive 
agencies guidance regarding consideration of the past contract 
performance of offerors in awarding contracts. The guidance shall 
include--
      (1) standards for evaluating past performance with respect to 
    cost (when appropriate), schedule, compliance with technical or 
    functional specifications, and other relevant performance factors 
    that facilitate consistent and fair evaluation by all executive 
    agencies;
      (2) policies for the collection and maintenance of information on 
    past contract performance that, to the maximum extent practicable, 
    facilitate automated collection, maintenance, and dissemination of 
    information and provide for ease of collection, maintenance, and 
    dissemination of information by other methods, as necessary;
      (3) policies for ensuring that--
          (A) offerors are afforded an opportunity to submit relevant 
        information on past contract performance, including performance 
        under contracts entered into by the executive agency concerned, 
        other departments and agencies of the Federal Government, 
        agencies of State and local governments, and commercial 
        customers; and
          (B) the information submitted by offerors is considered; and
      (4) the period for which information on past performance of 
    offerors may be maintained and considered.
  (b) Information Not Available.--If there is no information on past 
contract performance of an offeror or the information on past contract 
performance is not available, the offeror may not be evaluated 
favorably or unfavorably on the factor of past contract performance.

Sec. 1127. Determining benchmark compensation amount

  (a) Definitions.--In this section:
      (1) Benchmark compensation amount.--The term ``benchmark 
    compensation amount'', for a fiscal year, is the median amount of 
    the compensation provided for all senior executives of all 
    benchmark corporations for the most recent year for which data is 
    available at the time the determination under subsection (b) is 
    made.
      (2) Benchmark corporation.--The term ``benchmark corporation'', 
    with respect to a fiscal year, means a publicly-owned United States 
    corporation that has annual sales in excess of $50,000,000 for the 
    fiscal year.
      (3) Compensation.--The term ``compensation'', for a fiscal year, 
    means the total amount of wages, salary, bonuses, and deferred 
    compensation for the fiscal year, whether paid, earned, or 
    otherwise accruing, as recorded in an employer's cost accounting 
    records for the fiscal year.
      (4) Fiscal year.--The term ``fiscal year'' means a fiscal year a 
    contractor establishes for accounting purposes.
      (5) Publicly-owned united states corporation.--The term 
    ``publicly-owned United States corporation'' means a corporation--
          (A) organized under the laws of a State of the United States, 
        the District of Columbia, Puerto Rico, or a possession of the 
        United States; and
          (B) whose voting stock is publicly traded.
      (6) Senior executives.--The term ``senior executives'', with 
    respect to a contractor, means the 5 most highly compensated 
    employees in management positions at each home office and each 
    segment of the contractor.
  (b) Determining Benchmark Compensation Amount.--For purposes of 
section 4304(a)(16) of this title and section 2324(e)(1)(P) of title 
10, the Administrator shall review commercially available surveys of 
executive compensation and, on the basis of the results of the review, 
determine a benchmark compensation amount to apply for each fiscal 
year. In making determinations under this subsection, the Administrator 
shall consult with the Director of the Defense Contract Audit Agency 
and other officials of executive agencies as the Administrator 
considers appropriate.

Sec. 1128. Maintaining necessary capability with respect to acquisition 
            of architectural and engineering services

  The Administrator, in consultation with the Secretary of Defense, the 
Administrator of General Services, and the Director of the Office of 
Personnel Management, shall develop and implement a plan to ensure that 
the Federal Government maintains the necessary capability with respect 
to the acquisition of architectural and engineering services to--
      (1) ensure that Federal Government employees have the expertise 
    to determine agency requirements for those services;
      (2) establish priorities and programs, including acquisition 
    plans;
      (3) establish professional standards;
      (4) develop scopes of work; and
      (5) award and administer contracts for those services.

Sec. 1129. Center of excellence in contracting for services

  The Administrator shall maintain a center of excellence in 
contracting for services. The center shall assist the acquisition 
community by identifying, and serving as a clearinghouse for, best 
practices in contracting for services in the public and private 
sectors.

Sec. 1130. Effect of division on other law

  This division does not impair or affect the authorities or 
responsibilities relating to the procurement of real property conferred 
by division C of this subtitle and chapters 1 to 11 of title 40.

Sec. 1131. Annual report

  The Administrator annually shall submit to Congress an assessment of 
the progress made in executive agencies in implementing the policy 
regarding major acquisitions that is stated in section 3103(a) of this 
title. The Administrator shall use data from existing management 
systems in making the assessment.

                    CHAPTER 13--ACQUISITION COUNCILS

          SUBCHAPTER I--FEDERAL ACQUISITION REGULATORY COUNCIL

Sec.
1301.  Definition.
1302.  Establishment and membership.
1303.  Functions and authority.
1304.  Contract clauses and certifications.

            SUBCHAPTER II--CHIEF ACQUISITION OFFICERS COUNCIL

1311.  Establishment and membership.
1312.  Functions.

          SUBCHAPTER I--FEDERAL ACQUISITION REGULATORY COUNCIL

Sec. 1301. Definition

  In this subchapter, the term ``Council'' means the Federal 
Acquisition Regulatory Council established under section 1302(a) of 
this title.

Sec. 1302. Establishment and membership

  (a) Establishment.--There is a Federal Acquisition Regulatory Council 
to assist in the direction and coordination of Government-wide 
procurement policy and Government-wide procurement regulatory 
activities in the Federal Government.
  (b) Membership.--
      (1) Makeup of council.--The Council consists of--
          (A) the Administrator;
          (B) the Secretary of Defense;
          (C) the Administrator of National Aeronautics and Space; and
          (D) the Administrator of General Services.
      (2) Designation of other officials.--
          (A) Officials who may be designated.--Notwithstanding section 
        121(d)(1) and (2) of title 40, the officials specified in 
        subparagraphs (B) to (D) of paragraph (1) may designate to 
        serve on and attend meetings of the Council in place of that 
        official--
              (i) the official assigned by statute with the 
            responsibility for acquisition policy in each of their 
            respective agencies or, in the case of the Secretary of 
            Defense, an official at an organizational level not lower 
            than an Assistant Secretary of Defense within the Office of 
            the Under Secretary of Defense for Acquisition, Technology, 
            and Logistics; or
              (ii) if no official of that agency is assigned by statute 
            with the responsibility for acquisition policy for that 
            agency, the official designated pursuant to section 1702(c) 
            of this title.
          (B) Limitation on designation.--No other official or employee 
        may be designated to serve on the Council.

Sec. 1303. Functions and authority

  (a) Functions.--
      (1) Issue and maintain federal acquisition regulation.--Subject 
    to sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 
    2305 of this title, the Administrator of General Services, the 
    Secretary of Defense, and the Administrator of National Aeronautics 
    and Space, pursuant to their respective authorities under division 
    C of this subtitle, chapters 4 and 137 of title 10, and the 
    National Aeronautics and Space Act of 1958 (42 U.S.C. 2451 et 
    seq.), shall jointly issue and maintain in accordance with 
    subsection (d) a single Government-wide procurement regulation, to 
    be known as the Federal Acquisition Regulation.
      (2) Limitation on other regulations.--Other regulations relating 
    to procurement issued by an executive agency shall be limited to--
          (A) regulations essential to implement Government-wide 
        policies and procedures within the agency; and
          (B) additional policies and procedures required to satisfy 
        the specific and unique needs of the agency.
      (3) Ensure consistent regulations.--The Administrator, in 
    consultation with the Council, shall ensure that procurement 
    regulations prescribed by executive agencies are consistent with 
    the Federal Acquisition Regulation and in accordance with the 
    policies prescribed pursuant to section 1121(b) of this title.
      (4) Request to review regulation.--
          (A) Basis for request.--Under procedures the Administrator 
        establishes, a person may request the Administrator to review a 
        regulation relating to procurement on the basis that the 
        regulation is inconsistent with the Federal Acquisition 
        Regulation.
          (B) Period of review.--Unless the request is frivolous or 
        does not, on its face, state a valid basis for the review, the 
        Administrator shall complete the review not later than 60 days 
        after receiving the request. The time for completion of the 
        review may be extended if the Administrator determines that an 
        additional period of review is required. The Administrator 
        shall advise the requester of the reasons for the extension and 
        the date by which the review will be completed.
      (5) When regulation is inconsistent or needs to be improved.--If 
    the Administrator determines that a regulation relating to 
    procurement is inconsistent with the Federal Acquisition Regulation 
    or that the regulation otherwise should be revised to remove an 
    inconsistency with the policies prescribed under section 1121(b) of 
    this title, the Administrator shall rescind or deny the 
    promulgation of the regulation or take other action authorized 
    under sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 
    2305 of this title as may be necessary to remove the inconsistency. 
    If the Administrator determines that the regulation, although not 
    inconsistent with the Federal Acquisition Regulation or those 
    policies, should be revised to improve compliance with the 
    Regulation or policies, the Administrator shall take action 
    authorized under sections 1121, 1122(a) to (c)(1), 1125, 1126, 
    1130, 1131, and 2305 as may be necessary and appropriate.
      (6) Decisions to be in writing and publicly available.--The 
    decisions of the Administrator shall be in writing and made 
    publicly available.
  (b) Additional Responsibilities of Membership.--
      (1) In general.--Subject to the authority, direction, and control 
    of the head of the agency concerned, each official who represents 
    an agency on the Council pursuant to section 1302(b) of this title 
    shall--
          (A) approve or disapprove all regulations relating to 
        procurement that are proposed for public comment, prescribed in 
        final form, or otherwise made effective by that agency before 
        the regulation may be prescribed in final form, or otherwise 
        made effective, except that the official may grant an interim 
        approval, without review, for not more than 60 days for a 
        procurement regulation in urgent and compelling circumstances;
          (B) carry out the responsibilities of that agency set forth 
        in chapter 35 of title 44 for each information collection 
        request that relates to procurement rules or regulations; and
          (C) eliminate or reduce--
              (i) any redundant or unnecessary levels of review and 
            approval in the procurement system of that agency; and
              (ii) redundant or unnecessary procurement regulations 
            which are unique to that agency.
      (2) Limitation on delegation.--The authority to review and 
    approve or disapprove regulations under paragraph (1)(A) may not be 
    delegated to an individual outside the office of the official who 
    represents the agency on the Council pursuant to section 1302(b) of 
    this title.
  (c) Governing Policies.--All actions of the Council and of members of 
the Council shall be in accordance with and furtherance of the policies 
prescribed under section 1121(b) of this title.
  (d) General Authority With Respect to Federal Acquisition 
Regulation.--Subject to section 1121(d) of this title, the Council 
shall manage, coordinate, control, and monitor the maintenance of, 
issuance of, and changes in, the Federal Acquisition Regulation.

Sec. 1304. Contract clauses and certifications

  (a) Repetitive Nonstandard Contract Clauses Discouraged.--The Council 
shall prescribe regulations to discourage the use of a nonstandard 
contract clause on a repetitive basis. The regulations shall include 
provisions that--
      (1) clearly define what types of contract clauses are to be 
    treated as nonstandard clauses; and
      (2) require prior approval for the use of a nonstandard clause on 
    a repetitive basis by an official at a level of responsibility 
    above the contracting officer.
  (b) When Certification Required.--
      (1) By law.--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 provides that such a certification shall be required.
      (2) In federal acquisition regulation.--A requirement for a 
    certification by a contractor or offeror may not be included in the 
    Federal Acquisition Regulation unless--
          (A) the certification requirement is specifically imposed by 
        statute; or
          (B) written justification for the certification requirement 
        is provided to the Administrator by the Council and the 
        Administrator approves in writing the inclusion of the 
        certification requirement.
      (3) Executive agency procurement regulation.--
          (A) Definition.--In subparagraph (B), the term ``head of the 
        executive agency'' with respect to a military department means 
        the Secretary of Defense.
          (B) When certification requirement may be included in 
        regulation.--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 requirement is specifically imposed 
            by statute; or
              (ii) written justification for the certification 
            requirement 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 the certification requirement.

           SUBCHAPTER II--CHIEF ACQUISITION OFFICERS COUNCIL

Sec. 1311. Establishment and membership

  (a) Establishment.--There is in the executive branch a Chief 
Acquisition Officers Council.
  (b)  Membership.--The members of the Council are--
      (1) the Deputy Director for Management of the Office of 
    Management and Budget;
      (2) the Administrator;
      (3) the Under Secretary of Defense for Acquisition, Technology, 
    and Logistics;
      (4) the chief acquisition officer of each executive agency that 
    is required to have a chief acquisition officer under section 1702 
    of this title and the senior procurement executive of each military 
    department; and
      (5) any other senior agency officer of each executive agency, 
    appointed by the head of the agency in consultation with the 
    Chairman of the Council, who can effectively assist the Council in 
    performing the functions set forth in section 1312(b) of this title 
    and supporting the associated range of acquisition activities.
  (c) Leadership and Support.--
      (1) Chairman.--The Deputy Director for Management of the Office 
    of Management and Budget is the Chairman of the Council.
      (2) Vice chairman.--The Vice Chairman of the Council shall be 
    selected by the Council from among its members. The Vice Chairman 
    serves for one year and may serve multiple terms.
      (3) Leader of activities.--The Administrator shall lead the 
    activities of the Council on behalf of the Deputy Director for 
    Management.
      (4) Support.--The Administrator of General Services shall provide 
    administrative and other support for the Council.

Sec. 1312. Functions

  (a) Principal Forum.--The Chief Acquisition Officers Council is the 
principal interagency forum for monitoring and improving the Federal 
acquisition system.
  (b) Functions.--The Council shall perform functions that include the 
following:
      (1) Develop recommendations for the Director of the Office of 
    Management and Budget on Federal acquisition policies and 
    requirements.
      (2) Share experiences, ideas, best practices, and innovative 
    approaches related to Federal acquisition.
      (3) Assist the Administrator in the identification, development, 
    and coordination of multiagency projects and other innovative 
    initiatives to improve Federal acquisition.
      (4) Promote effective business practices that ensure the timely 
    delivery of best value products to the Federal Government and 
    achieve appropriate public policy objectives.
      (5) Further integrity, fairness, competition, openness, and 
    efficiency in the Federal acquisition system.
      (6) Work with the Office of Personnel Management to assess and 
    address the hiring, training, and professional development needs of 
    the Federal Government related to acquisition.
      (7) Work with the Administrator and the Federal Acquisition 
    Regulatory Council to promote the business practices referred to in 
    paragraph (4) and other results of the functions carried out under 
    this subsection.

                 CHAPTER 15--COST ACCOUNTING STANDARDS

Sec.
1501.  Cost Accounting Standards Board.
1502.  Cost accounting standards.
1503.  Contract price adjustment.
1504.  Effect on other standards and regulations.
1505.  Examinations.
1506.  Authorization of appropriations.

Sec. 1501. Cost Accounting Standards Board

  (a) Organization.--The Cost Accounting Standards Board is an 
independent board in the Office of Federal Procurement Policy.
  (b) Membership.--
      (1) Number of members, chairman, and appointment.--The Board 
    consists of 5 members. One member is the Administrator, who serves 
    as Chairman. The other 4 members, all of whom shall have experience 
    in Federal Government contract cost accounting, are as follows:
          (A) 2 representatives of the Federal Government--
              (i) one of whom is a representative of the Department of 
            Defense appointed by the Secretary of Defense; and
              (ii) one of whom is an officer or employee of the General 
            Services Administration appointed by the Administrator of 
            General Services.
          (B) 2 individuals from the private sector, each of whom is 
        appointed by the Administrator, and--
              (i) one of whom is a representative of industry; and
              (ii) one of whom is particularly knowledgeable about cost 
            accounting problems and systems.
      (2) Term of office.--
          (A) Length of term.--The term of office of each member, other 
        than the Administrator, is 4 years. The terms are staggered, 
        with the terms of 2 members expiring in the same year, the term 
        of another member expiring the next year, and the term of the 
        last member expiring the year after that.
          (B) Individual required to remain with appointing agency.--A 
        member appointed under paragraph (1)(A) may not continue to 
        serve after ceasing to be an officer or employee of the agency 
        from which that member was appointed.
      (3) Vacancy.--A vacancy on the Board shall be filled in the same 
    manner in which the original appointment was made. A member 
    appointed to fill a vacancy serves for the remainder of the term 
    for which that member's predecessor was appointed.
  (c) Senior Staff.--The Administrator, after consultation with the 
Board, may--
      (1) appoint an executive secretary and 2 additional staff members 
    without regard to the provisions of title 5 governing appointments 
    in the competitive service; and
      (2) pay those employees without regard to the provisions of 
    chapter 51 and subchapter III of chapter 53 of title 5 relating to 
    classification and General Schedule pay rates, except that those 
    employees may not receive pay in excess of the maximum rate of 
    basic pay payable for level IV of the Executive Schedule.
  (d) Other Staff.--The Administrator may appoint, fix the compensation 
of, and remove additional employees of the Board under the applicable 
provisions of title 5.
  (e) Detailed and Temporary Personnel.--For service on advisory 
committees and task forces to assist the Board in carrying out its 
functions and responsibilities--
      (1) the Board, with the consent of the head of a Federal agency, 
    may use, without reimbursement, personnel of that agency; and
      (2) the Administrator, after consultation with the Board, may 
    procure temporary and intermittent services of personnel under 
    section 3109(b) of title 5.
  (f) Compensation.--
      (1) Officers and employees of the government.--Members of the 
    Board who are officers or employees of the Federal Government, and 
    officers and employees of other agencies of the Federal Government 
    who are used under subsection (e)(1), shall not receive additional 
    compensation for services but shall continue to be compensated by 
    the employing department or agency of the officer or employee.
      (2) Appointees from private sector.--Each member of the Board 
    appointed from the private sector shall receive compensation at a 
    rate not to exceed the daily equivalent of the rate for level IV of 
    the Executive Schedule for each day (including travel time) in 
    which the member is engaged in the actual performance of duties 
    vested in the Board.
      (3) Temporary and intermittent personnel.--An individual hired 
    under subsection (e)(2) may receive compensation at a rate fixed by 
    the Administrator, but not to exceed the daily equivalent of the 
    rate for level V of the Executive Schedule for each day (including 
    travel time) in which the individual is properly engaged in the 
    actual performance of duties under this chapter.
      (4) Travel expenses.--While serving away from home or regular 
    place of business, Board members and other individuals serving on 
    an intermittent basis under this chapter shall be allowed travel 
    expenses in accordance with section 5703 of title 5.

Sec. 1502. Cost accounting standards

  (a) Authority.--
      (1) Cost accounting standards board.--The Cost Accounting 
    Standards Board has exclusive authority to prescribe, amend, and 
    rescind cost accounting standards, and interpretations of the 
    standards, designed to achieve uniformity and consistency in the 
    cost accounting standards governing measurement, assignment, and 
    allocation of costs to contracts with the Federal Government.
      (2) Administrator for federal procurement policy.--The 
    Administrator, after consultation with the Board, shall prescribe 
    rules and procedures governing actions of the Board under this 
    chapter. The rules and procedures shall require that any action to 
    prescribe, amend, or rescind a standard or interpretation be 
    approved by majority vote of the Board.
  (b) Mandatory Use of Standards.--
      (1) Subcontract.--
          (A) Definition.--In this paragraph, the term ``subcontract'' 
        includes a transfer of commercial items between divisions, 
        subsidiaries, or affiliates of a contractor or subcontractor.
          (B) When standards are to be used.--Cost accounting standards 
        prescribed under this chapter are mandatory for use by all 
        executive agencies and by contractors and subcontractors in 
        estimating, accumulating, and reporting costs in connection 
        with the pricing and administration of, and settlement of 
        disputes concerning, all negotiated prime contract and 
        subcontract procurements with the Federal Government in excess 
        of the amount set forth in section 2306a(a)(1)(A)(i) of title 
        10 as the amount is adjusted in accordance with applicable 
        requirements of law.
          (C) Nonapplication of standards.--Subparagraph (B) does not 
        apply to--
              (i) a contract or subcontract for the acquisition of a 
            commercial item;
              (ii) a contract or subcontract where the price negotiated 
            is based on a price set by law or regulation;
              (iii) a firm, fixed-price contract or subcontract awarded 
            on the basis of adequate price competition without 
            submission of certified cost or pricing data; or
              (iv) a contract or subcontract with a value of less than 
            $7,500,000 if, when the contract or subcontract is entered 
            into, the segment of the contractor or subcontractor that 
            will perform the work has not been awarded at least one 
            contract or subcontract with a value of more than 
            $7,500,000 that is covered by the standards.
      (2) Exemptions and waivers by board.--The Board may--
          (A) exempt classes of contractors and subcontractors from the 
        requirements of this chapter; and
          (B) establish procedures for the waiver of the requirements 
        of this chapter for individual contracts and subcontracts.
      (3) Waiver by head of executive agency.--
          (A) In general.--The head of an executive agency may waive 
        the applicability of the cost accounting standards for a 
        contract or subcontract with a value of less than $15,000,000 
        if that official determines in writing that the segment of the 
        contractor or subcontractor that will perform the work--
              (i) is primarily engaged in the sale of commercial items; 
            and
              (ii) would not otherwise be subject to the cost 
            accounting standards under this section.
          (B) In exceptional circumstances.--The head of an executive 
        agency may waive the applicability of the cost accounting 
        standards for a contract or subcontract under exceptional 
        circumstances when necessary to meet the needs of the agency. A 
        determination to waive the applicability of the standards under 
        this subparagraph shall be set forth in writing and shall 
        include a statement of the circumstances justifying the waiver.
          (C) Restriction on delegation of authority.--The head of an 
        executive agency may not delegate the authority under 
        subparagraph (A) or (B) to an official in the executive agency 
        below the senior policymaking level in the executive agency.
          (D) Contents of federal acquisition regulation.--The Federal 
        Acquisition Regulation shall include--
              (i) criteria for selecting an official to be delegated 
            authority to grant waivers under subparagraph (A) or (B); 
            and
              (ii) the specific circumstances under which the waiver 
            may be granted.
          (E) Report.--The head of each executive agency shall report 
        the waivers granted under subparagraphs (A) and (B) for that 
        agency to the Board on an annual basis.
  (c) Required Board Action for Prescribing Standards and 
Interpretations.--Before prescribing cost accounting standards and 
interpretations, the Board shall--
      (1) take into account, after consultation and discussions with 
    the Comptroller General, professional accounting organizations, 
    contractors, and other interested parties--
          (A) the probable costs of implementation, including any 
        inflationary effects, compared to the probable benefits;
          (B) the advantages, disadvantages, and improvements 
        anticipated in the pricing and administration of, and 
        settlement of disputes concerning, contracts; and
          (C) the scope of, and alternatives available to, the action 
        proposed to be taken;
      (2) prepare and publish a report in the Federal Register on the 
    issues reviewed under paragraph (1);
      (3)(A) publish an advanced notice of proposed rulemaking in the 
    Federal Register to solicit comments on the report prepared under 
    paragraph (2);
      (B) provide all parties affected at least 60 days after 
    publication to submit their views and comments; and
      (C) during the 60-day period, consult with the Comptroller 
    General and consider any recommendation the Comptroller General may 
    make; and
      (4) publish a notice of proposed rulemaking in the Federal 
    Register and provide all parties affected at least 60 days after 
    publication to submit their views and comments.
  (d) Effective Dates.--Rules, regulations, cost accounting standards, 
and modifications thereof prescribed or amended under this chapter 
shall have the full force and effect of law, and shall become effective 
within 120 days after publication in the Federal Register in final 
form, unless the Board determines that a longer period is necessary. 
The Board shall determine implementation dates for contractors and 
subcontractors. The dates may not be later than the beginning of the 
second fiscal year of the contractor or subcontractor after the 
standard becomes effective.
  (e) Accompanying Material.--Rules, regulations, cost accounting 
standards, and modifications thereof prescribed or amended under this 
chapter shall be accompanied by prefatory comments and by 
illustrations, if necessary.
  (f) Implementing Regulations.--The Board shall prescribe regulations 
for the implementation of cost accounting standards prescribed or 
interpreted under this section. The regulations shall be incorporated 
into the Federal Acquisition Regulation and shall require contractors 
and subcontractors as a condition of contracting with the Federal 
Government to--
      (1) disclose in writing their cost accounting practices, 
    including methods of distinguishing direct costs from indirect 
    costs and the basis used for allocating indirect costs; and
      (2) agree to a contract price adjustment, with interest, for any 
    increased costs paid to the contractor or subcontractor by the 
    Federal Government because of a change in the contractor's or 
    subcontractor's cost accounting practices or a failure by the 
    contractor or subcontractor to comply with applicable cost 
    accounting standards.
  (g) Nonapplicability of Certain Sections of Title 5.--Functions 
exercised under this chapter are not subject to sections 551, 553 to 
559, and 701 to 706 of title 5.

Sec. 1503. Contract price adjustment

  (a) Disagreement Constitutes a Dispute.--If the Federal Government 
and a contractor or subcontractor fail to agree on a contract price 
adjustment, including whether the contractor or subcontractor has 
complied with the applicable cost accounting standards, the 
disagreement will constitute a dispute under chapter 71 of this title.
  (b) Amount of Adjustment.--A contract price adjustment undertaken 
under section 1502(f)(2) of this title shall be made, where applicable, 
on relevant contracts between the Federal Government and the contractor 
that are subject to the cost accounting standards so as to protect the 
Federal Government from payment, in the aggregate, of increased costs, 
as defined by the Cost Accounting Standards Board. The Federal 
Government may not recover costs greater than the aggregate increased 
cost to the Federal Government, as defined by the Board, on the 
relevant contracts subject to the price adjustment unless the 
contractor made a change in its cost accounting practices of which it 
was aware or should have been aware at the time of the price 
negotiation and which it failed to disclose to the Federal Government.
  (c) Interest.--The interest rate applicable to a contract price 
adjustment is the annual rate of interest established under section 
6621 of the Internal Revenue Code of 1986 (26 U.S.C. 6621) for the 
period. Interest accrues from the time payments of the increased costs 
were made to the contractor or subcontractor to the time the Federal 
Government receives full compensation for the price adjustment.

Sec. 1504. Effect on other standards and regulations

  (a) Previously Existing Standards.--All cost accounting standards, 
waivers, exemptions, interpretations, modifications, rules, and 
regulations prescribed by the Cost Accounting Standards Board under 
section 719 of the Defense Production Act of 1950 (50 U.S.C. App. 
2168)--
      (1) remain in effect until amended, superseded, or rescinded by 
    the Board under this chapter; and
      (2) are subject to the provisions of this division in the same 
    manner as if prescribed by the Board under this division.
  (b) Inconsistent Agency Regulations.--To ensure that a regulation or 
proposed regulation of an executive agency is not inconsistent with a 
cost accounting standard prescribed or amended under this chapter, the 
Administrator, under the authority in sections 1121, 1122(a) to (c)(1), 
1125, 1126, 1130, 1131, and 2305 of this title, shall rescind or deny 
the promulgation of the inconsistent regulation or proposed regulation 
and take other appropriate action authorized under sections 1121, 
1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 2305.
  (c) Costs Not Subject to Different Standards.--Costs that are the 
subject of cost accounting standards prescribed under this chapter are 
not subject to regulations established by another executive agency that 
differ from those standards with respect to the measurement, 
assignment, and allocation of those costs.

Sec. 1505. Examinations

  To determine whether a contractor or subcontractor has complied with 
cost accounting standards prescribed under this chapter and has 
followed consistently the contractor's or subcontractor's disclosed 
cost accounting practices, an authorized representative of the head of 
the agency concerned, of the offices of inspector general established 
under the Inspector General Act of 1978 (5 U.S.C. App.), or of the 
Comptroller General shall have the right to examine and copy documents, 
papers, or records of the contractor or subcontractor relating to 
compliance with the standards.

Sec. 1506. Authorization of appropriations

  Necessary amounts may be appropriated to carry out this chapter.

           CHAPTER 17--AGENCY RESPONSIBILITIES AND PROCEDURES

Sec.
1701.  Cooperation with the Administrator.
1702.  Chief Acquisition Officers and senior procurement executives.
1703.  Acquisition workforce.
1704.  Planning and policy-making for acquisition workforce.
1705.  Advocates for competition.
1706.  Personnel evaluation.
1707.  Publication of proposed regulations.
1708.  Procurement notice.
1709.  Contracting functions performed by Federal personnel.
1710.  Public-private competition required before conversion to 
          contractor performance.
1711.  Value engineering.
1712.  Record requirements.
1713.  Procurement data.

Sec. 1701. Cooperation with the Administrator

  On the request of the Administrator, each executive agency shall--
      (1) make its services, personnel, and facilities available to the 
    Office of Federal Procurement Policy to the greatest practicable 
    extent for the performance of functions under this division; and
      (2) except when prohibited by law, furnish to the Administrator, 
    and give the Administrator access to, all information and records 
    in its possession that the Administrator may determine to be 
    necessary for the performance of the functions of the Office.

Sec. 1702. Chief Acquisition Officers and senior procurement executives

  (a) Appointment or Designation of Chief Acquisition Officer.--The 
head of each executive agency described in section 901(b)(1) (other 
than the Department of Defense) or 901(b)(2)(C) of title 31 with a 
Chief Financial Officer appointed or designated under section 901(a) of 
title 31 shall appoint or designate a non-career employee as Chief 
Acquisition Officer for the agency.
  (b) Authority and Functions of Chief Acquisition Officer.--
      (1) Primary duty.--The primary duty of a Chief Acquisition 
    Officer is acquisition management.
      (2) Advice and assistance.--A Chief Acquisition Officer shall 
    advise and assist the head of the executive agency and other agency 
    officials to ensure that the mission of the executive agency is 
    achieved through the management of the agency's acquisition 
    activities.
      (3) Other functions.--The functions of each Chief Acquisition 
    Officer include--
          (A) monitoring the performance of acquisition activities and 
        acquisition programs of the executive agency, evaluating the 
        performance of those programs on the basis of applicable 
        performance measurements, and advising the head of the 
        executive agency regarding the appropriate business strategy to 
        achieve the mission of the executive agency;
          (B) increasing the use of full and open competition in the 
        acquisition of property and services by the executive agency by 
        establishing policies, procedures, and practices that ensure 
        that the executive agency receives a sufficient number of 
        sealed bids or competitive proposals from responsible sources 
        to fulfill the Federal Government's requirements (including 
        performance and delivery schedules) at the lowest cost or best 
        value considering the nature of the property or service 
        procured;
          (C) increasing appropriate use of performance-based 
        contracting and performance specifications;
          (D) making acquisition decisions consistent with all 
        applicable laws and establishing clear lines of authority, 
        accountability, and responsibility for acquisition 
        decisionmaking within the executive agency;
          (E) managing the direction of acquisition policy for the 
        executive agency, including implementation of the unique 
        acquisition policies, regulations, and standards of the 
        executive agency;
          (F) developing and maintaining an acquisition career 
        management program in the executive agency to ensure that there 
        is an adequate professional workforce; and
          (G) as part of the strategic planning and performance 
        evaluation process required under section 306 of title 5 and 
        sections 1105(a)(28), 1115, 1116, and 9703 (added by section 
        5(a) of Public Law 103-62 (107 Stat. 289)) of title 31--
              (i) assessing the requirements established for agency 
            personnel regarding knowledge and skill in acquisition 
            resources management and the adequacy of those requirements 
            for facilitating the achievement of the performance goals 
            established for acquisition management;
              (ii) developing strategies and specific plans for hiring, 
            training, and professional development to rectify a 
            deficiency in meeting those requirements; and
              (iii) reporting to the head of the executive agency on 
            the progress made in improving acquisition management 
            capability.
  (c) Senior Procurement Executive.--
      (1) Designation.--The head of each executive agency shall 
    designate a senior procurement executive.
      (2) Responsibility.--The senior procurement executive is 
    responsible for management direction of the procurement system of 
    the executive agency, including implementation of the unique 
    procurement policies, regulations, and standards of the executive 
    agency.
      (3) When chief acquisition officer appointed or designated.--For 
    an executive agency for which a Chief Acquisition Officer has been 
    appointed or designated under subsection (a), the head of the 
    executive agency shall--
          (A) designate the Chief Acquisition Officer as the senior 
        procurement executive for the executive agency; or
          (B) ensure that the senior procurement executive designated 
        under paragraph (1) reports directly to the Chief Acquisition 
        Officer without intervening authority.

Sec. 1703. Acquisition workforce

  (a) Description.--For purposes of this section, the acquisition 
workforce of an agency consists of all employees serving in acquisition 
positions listed in subsection (g)(1)(A).
  (b) Applicability.--
      (1) Nonapplicability to certain executive agencies.--Except as 
    provided in subsection (i), this section does not apply to an 
    executive agency that is subject to chapter 87 of title 10.
      (2) Applicability of programs.--The programs established by this 
    section apply to the acquisition workforce of each executive 
    agency.
  (c) Management Policies.--
      (1) Duties of head of executive agency.--
          (A) Establish policies and procedures.--After consultation 
        with the Administrator, the head of each executive agency 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 section 2301(b) of title 5.
          (B) Ensure 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.
      (2) Duties of administrator.--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 the 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 (Public Law 103-355, 108 Stat. 
    3351). The Administrator shall evaluate the implementation of this 
    section by executive agencies.
  (d) Authority and Responsibility of Senior Procurement Executive.--
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 implementing 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.
  (e) Collecting and Maintaining Information.--The Administrator shall 
ensure that the heads of executive agencies collect and maintain 
standardized information on the acquisition workforce related to 
implementing this section. To the maximum extent practicable, 
information requirements shall conform to standards the Director of the 
Office of Personnel Management establishes for the Central Personnel 
Data File.
  (f) Career Development.--
      (1) Career paths.--
          (A) Identification.--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 available 
        information on those career paths.
          (B) 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.
          (C) 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 also 
        shall 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.
      (2) Performance incentives.--The head of each executive agency 
    shall provide for an enhanced system of incentives to encourage 
    excellence in the acquisition workforce that rewards performance of 
    employees who contribute to achieving the agency's performance 
    goals. The system of incentives shall include provisions that--
          (A) relate pay to performance (including the extent to which 
        the performance of personnel in the workforce contributes to 
        achieving the cost goals, schedule goals, and performance goals 
        established for acquisition programs pursuant to section 
        3103(b) of this title); and
          (B) provide for consideration, in personnel evaluations and 
        promotion decisions, of the extent to which the performance of 
        personnel in the workforce contributes to achieving the cost 
        goals, schedule goals, and performance goals.
  (g) Qualification Requirements.--
      (1) In general.--Subject to paragraph (2), the Administrator 
    shall--
          (A) establish qualification requirements, including education 
        requirements, for--
              (i) entry-level positions in the General Schedule 
            Contracting series (GS-1102);
              (ii) senior positions in the General Schedule Contracting 
            series (GS-1102);
              (iii) all positions in the General Schedule Purchasing 
            series (GS-1105); and
              (iv) positions in other General Schedule series in which 
            significant acquisition-related functions are performed; 
            and
          (B) prescribe the manner and extent to which the 
        qualification requirements shall apply to an individual serving 
        in a position described in subparagraph (A) at the time the 
        requirements are established.
      (2) Relationship to requirements applicable to defense 
    acquisition workforce.--The Administrator shall establish 
    qualification requirements and make prescriptions under paragraph 
    (1) that are comparable to those established for the same or 
    equivalent positions pursuant to chapter 87 of title 10 with 
    appropriate modifications.
      (3) Approval of requirements.--The Administrator shall submit any 
    requirement established or prescription made under paragraph (1) to 
    the Director of the Office of Personnel Management for approval. 
    The Director is deemed to have approved the requirement or 
    prescription if the Director does not disapprove the requirement or 
    prescription within 30 days after receiving it.
  (h) Education and Training.--
      (1) Funding levels.--The head of an executive agency shall set 
    forth separately the funding levels requested for educating and 
    training the acquisition workforce in the budget justification 
    documents submitted in support of the President's budget submitted 
    to Congress under section 1105 of title 31.
      (2) Tuition assistance.--The head of an executive agency may 
    provide tuition reimbursement in education (including a full-time 
    course of study leading to a degree) in accordance with section 
    4107 of title 5 for personnel serving in acquisition positions in 
    the agency.
      (3) Restricted obligation.--Amounts appropriated for education 
    and training under this section may not be obligated for another 
    purpose.
  (i) Training Fund.--
      (1) Purposes.--The purposes of this subsection are to ensure that 
    the Federal acquisition workforce--
          (A) adapts to fundamental changes in the nature of Federal 
        Government acquisition of property and services associated with 
        the changing roles of the Federal Government; and
          (B) acquires new skills and a new perspective to enable it to 
        contribute effectively in the changing environment of the 21st 
        century.
      (2) Establishment and management of fund.--There is an 
    acquisition workforce training fund. The Administrator of General 
    Services shall manage the fund through the Federal Acquisition 
    Institute to support the training of the acquisition workforce of 
    the executive agencies, except as provided in paragraph (5). The 
    Administrator of General Services shall consult with the 
    Administrator in managing the fund.
      (3) Credits to fund.--Five percent of the fees collected by 
    executive agencies (other than the Department of Defense) under the 
    following contracts shall be credited to the fund:
          (A) Government-wide task and delivery-order contracts entered 
        into under sections 4103 and 4105 of this title.
          (B) Government-wide contracts for the acquisition of 
        information technology as defined in section 11101 of title 40 
        and multiagency acquisition contracts for that technology 
        authorized by section 11314 of title 40.
          (C) multiple-award schedule contracts entered into by the 
        Administrator of General Services.
      (4) Remittance by head of executive agency.--The head of an 
    executive agency that administers a contract described in paragraph 
    (3) shall remit to the General Services Administration the amount 
    required to be credited to the fund with respect to the contract at 
    the end of each quarter of the fiscal year.
      (5) Transfer and use of fees collected from department of 
    defense.--The Administrator of General Services shall transfer to 
    the Secretary of Defense fees collected from the Department of 
    Defense pursuant to paragraph (3). The Defense Acquisition 
    University shall use the fees for acquisition workforce training.
      (6) Amounts not to be used for other purposes.--The Administrator 
    of General Services, through the Office of Federal Procurememt 
    Policy, shall ensure that amounts collected for training under this 
    subsection are not used for a purpose other than the purpose 
    specified in paragraph (2).
      (7) Amounts are in addition to other amounts for education and 
    training.--Amounts credited to the fund are in addition to amounts 
    requested and appropriated for education and training referred to 
    in subsection (h)(1).
      (8) Availability of amounts.--Amounts credited to the fund remain 
    available to be expended only in the fiscal year for which they are 
    credited and the 2 succeeding fiscal years.
  (j) Recruitment Program.--
      (1) Shortage category positions.--For purposes of sections 3304, 
    5333, and 5753 of title 5, the head of a department or agency of 
    the Federal Government (other than the Secretary of Defense) may 
    determine, under regulations prescribed by the Office of Personnel 
    Management, that certain Federal acquisition positions (as 
    described in subsection (g)(1)(A)) are shortage category positions 
    in order to use the authorities in those sections to recruit and 
    appoint highly qualified individuals directly to those positions in 
    the department or agency.
      (2) Termination of authority.--The head of a department or agency 
    may not appoint an individual to a position of employment under 
    this subsection after September 30, 2012.
  (k) Reemployment Without Loss of Annuity.--
      (1) Establishment of policies and procedures.--The head of each 
    executive agency, after consultation with the Administrator and the 
    Director of the Office of Personnel Management, shall establish 
    policies and procedures under which the agency head may reemploy in 
    an acquisition-related position (as described in subsection 
    (g)(1)(A)) an individual receiving an annuity from the Civil 
    Service Retirement and Disability Fund, on the basis of the 
    individual's service, without discontinuing the annuity. The head 
    of each executive agency shall keep the Administrator informed of 
    the agency's use of this authority.
      (2) Criteria for continuation of annuity.--Policies and 
    procedures established under paragraph (1) shall authorize the head 
    of the executive agency, on a case-by-case basis, to continue an 
    annuity if any of the following makes the reemployment of an 
    individual essential:
          (A) The unusually high or unique qualifications of an 
        individual receiving an annuity from the Civil Service 
        Retirement and Disability Fund on the basis of the individual's 
        service.
          (B) The exceptional difficulty in recruiting or retaining a 
        qualified employee.
          (C) A temporary emergency hiring need.
      (3) Service not subject to csrs or fers.--An individual 
    reemployed under this subsection shall not be deemed an employee 
    for purposes of chapter 83 or 84 of title 5.
      (4) Reporting requirement.--The Administrator shall submit 
    annually to the Committee on Oversight and Government Reform of the 
    House of Representatives and the Committee on Homeland Security and 
    Governmental Affairs of the Senate a report on the use of the 
    authority under this subsection, including the number of employees 
    reemployed under authority of this subsection.
      (5) Sunset provision.--The authority under this subsection 
    expires on December 31, 2011.

Sec. 1704. Planning and policy-making for acquisition workforce

  (a) Definitions.--In this section:
      (1) Associate Administrator.--The term ``Associate 
    Administrator'' means the Associate Administrator for Acquisition 
    Workforce Programs as designated by the Administrator pursuant to 
    subsection (b).
      (2) Chief Acquisition Officer.--The term ``Chief Acquisition 
    Officer'' means a Chief Acquisition Officer for an executive agency 
    appointed pursuant to section 1702 of this title.
  (b) Associate Administrator for Acquisition Workforce Programs.--The 
Administrator shall designate a member of the Senior Executive Service 
as the Associate Administrator for Acquisition Workforce Programs. The 
Associate Administrator shall be located in the Federal Acquisition 
Institute (or its successor). The Associate Administrator shall be 
responsible for--
      (1) supervising the acquisition workforce training fund 
    established under section 1703(i) of this title;
      (2) developing, in coordination with Chief Acquisition Officers 
    and Chief Human Capital Officers, a strategic human capital plan 
    for the acquisition workforce of the Federal Government;
      (3) reviewing and providing input to individual agency 
    acquisition workforce succession plans;
      (4) recommending to the Administrator and other senior government 
    officials appropriate programs, policies, and practices to increase 
    the quantity and quality of the Federal acquisition workforce; and
      (5) carrying out other functions that the Administrator may 
    assign.
  (c) Acquisition and Contracting Training Programs Within Executive 
Agencies.--
      (1) Chief Acquisition Officer authorities and responsibilities.--
    Subject to the authority, direction, and control of the head of an 
    executive agency, the Chief Acquisition Officer for that agency 
    shall carry out all powers, functions, and duties of the head of 
    the agency with respect to implementation of this subsection. The 
    Chief Acquisition Officer shall ensure that the policies 
    established by the head of the agency in accordance with this 
    subsection are implemented throughout the agency.
      (2) Requirement.--The head of each executive agency, after 
    consultation with the Associate Administrator, shall establish and 
    operate acquisition and contracting training programs. The programs 
    shall--
          (A) have curricula covering a broad range of acquisition and 
        contracting disciplines corresponding to the specific 
        acquisition and contracting needs of the agency involved;
          (B) be developed and applied according to rigorous standards; 
        and
          (C) be designed to maximize efficiency, through the use of 
        self-paced courses, online courses, on-the-job training, and 
        the use of remote instructors, wherever those features can be 
        applied without reducing the effectiveness of the training or 
        negatively affecting academic standards.
  (d)  Government-wide Policies and Evaluation.--The Administrator 
shall issue policies to promote the development of performance 
standards for training and 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 evaluate the 
implementation of the provisions of subsection (c) by executive 
agencies.
  (e) Information on Acquisition and Contracting Training.--The 
Administrator shall ensure that the heads of executive agencies collect 
and maintain standardized information on the acquisition and 
contracting workforce related to the implementation of subsection (c).
  (f) Acquisition Workforce Human Capital Succession Plan.--
      (1) In general.--Each Chief Acquisition Officer for an executive 
    agency shall develop, in consultation with the Chief Human Capital 
    Officer for the agency and the Associate Administrator, a 
    succession plan consistent with the agency's strategic human 
    capital plan for the recruitment, development, and retention of the 
    agency's acquisition workforce, with a particular focus on 
    warranted contracting officers and program managers of the agency.
      (2) Content of plan.--The acquisition workforce succession plan 
    shall address--
          (A) recruitment goals for personnel from procurement intern 
        programs;
          (B) the agency's acquisition workforce training needs;
          (C) actions to retain high performing acquisition 
        professionals who possess critical relevant skills;
          (D) recruitment goals for personnel from the Federal Career 
        Intern Program; and
          (E) recruitment goals for personnel from the Presidential 
        Management Fellows Program.
  (g) Acquisition Workforce Development Strategic Plan.--
      (1) Purpose.--The purpose of this subsection is to authorize the 
    preparation and completion of the Acquisition Workforce Development 
    Strategic Plan, which is a plan for Federal agencies other than the 
    Department of Defense to--
          (A) develop a specific and actionable 5-year plan to increase 
        the size of the acquisition workforce; and
          (B) operate a government-wide acquisition intern program for 
        the Federal agencies.
      (2) Establishment of plan.--The Associate Administrator shall be 
    responsible for the management, oversight, and administration of 
    the Acquisition Workforce Development Strategic Plan in cooperation 
    and consultation with the Office of Federal Procurement Policy and 
    with the assistance of the Federal Acquisition Institute.
      (3) Criteria.--The Acquisition Workforce Development Strategic 
    Plan shall include an examination of the following matters:
          (A) The variety and complexity of acquisitions conducted by 
        each Federal agency covered by the plan, and the workforce 
        needed to effectively carry out the acquisitions.
          (B) The development of a sustainable funding model to support 
        efforts to hire, retain, and train an acquisition workforce of 
        appropriate size and skill to effectively carry out the 
        acquisition programs of the Federal agencies covered by the 
        plan, including an examination of interagency funding methods 
        and a discussion of how the model of the Defense Acquisition 
        Workforce Development Fund could be applied to civilian 
        agencies.
          (C) Any strategic human capital planning necessary to hire, 
        retain, and train an acquisition workforce of appropriate size 
        and skill at each Federal agency covered by the plan.
          (D) Methodologies that Federal agencies covered by the plan 
        can use to project future acquisition workforce personnel 
        hiring requirements, including an appropriate distribution of 
        such personnel across each category of positions designated as 
        acquisition workforce personnel under section 1703(g) of this 
        title.
          (E) Government-wide training standards and certification 
        requirements necessary to enhance the mobility and career 
        opportunities of the Federal acquisition workforce within the 
        Federal agencies covered by the plan.
          (F) If the Associate Administrator recommends as part of the 
        plan a growth in the acquisition workforce of the Federal 
        agencies covered by the plan below 25 percent over the next 5 
        years, an examination of each of the matters specified in 
        subparagraphs (A) to (E) in the context of a 5-year plan that 
        increases the size of such acquisition workforce by not less 
        than 25 percent, or an explanation why such a level of growth 
        would not be in the best interest of the Federal Government.
      (4) Deadline for completion.--The Acquisition Workforce 
    Development Strategic Plan shall be completed not later than one 
    year after October 14, 2008, and in a fashion that allows for 
    immediate implementation of its recommendations and guidelines.
      (5) Funds.--The acquisition workforce development strategic plan 
    shall be funded from the acquisition workforce training fund under 
    section 1703(i) of this title.
  (h) Training in the Acquisition of Architect and Engineering 
Services.--The Administrator shall ensure that a sufficient number of 
Federal employees are trained in the acquisition of architect and 
engineering services.
  (i) Utilization of Recruitment and Retention Authorities.--The 
Administrator, in coordination with the Director of the Office of 
Personnel Management, shall encourage executive agencies to use 
existing authorities, including direct hire authority and tuition 
assistance programs, to recruit and retain acquisition personnel and 
consider recruiting acquisition personnel who may be retiring from the 
private sector, consistent with existing laws and regulations.

Sec. 1705. Advocates for competition

  (a) Establishment and Designation.--
      (1) Establishment.--Each executive agency has an advocate for 
    competition.
      (2) Designation.--The head of each executive agency shall--
          (A) designate for the executive agency and for each procuring 
        activity of the executive agency one officer or employee 
        serving in a position authorized for the executive agency on 
        July 18, 1984 (other than the senior procurement executive 
        designated pursuant to section 1702(c) of this title) to serve 
        as the advocate for competition;
          (B) not assign those officers or employees duties or 
        responsibilities that are inconsistent with the duties and 
        responsibilities of the advocates for competition; and
          (C) provide those officers or employees with the staff or 
        assistance necessary to carry out the duties and 
        responsibilities of the advocate for competition, such as 
        individuals who are specialists in engineering, technical 
        operations, contract administration, financial management, 
        supply management, and utilization of small and disadvantaged 
        business concerns.
  (b) Duties and Functions.--The advocate for competition of an 
executive agency shall--
      (1) be responsible for challenging barriers to, and promoting 
    full and open competition in, the procurement of property and 
    services by the executive agency;
      (2) review the procurement activities of the executive agency;
      (3) identify and report to the senior procurement executive of 
    the executive agency--
          (A) opportunities and actions taken to achieve full and open 
        competition in the procurement activities of the executive 
        agency; and
          (B) any condition or action which has the effect of 
        unnecessarily restricting competition in the procurement 
        actions of the executive agency;
      (4) prepare and transmit to the senior procurement executive an 
    annual report describing--
          (A) the advocate's activities under this section;
          (B) new initiatives required to increase competition; and
          (C) remaining barriers to full and open competition;
      (5) recommend to the senior procurement executive--
          (A) goals and the plans for increasing competition on a 
        fiscal year basis; and
          (B) a system of personal and organizational accountability 
        for competition, which may include the use of recognition and 
        awards to motivate program managers, contracting officers, and 
        others in authority to promote competition in procurement 
        programs; and
      (6) describe other ways in which the executive agency has 
    emphasized competition in programs for procurement training and 
    research.
  (c) Responsibilities.--The advocate for competition for each 
procuring activity is responsible for promoting full and open 
competition, promoting the acquisition of commercial items, and 
challenging barriers to acquisition, including unnecessarily 
restrictive statements of need, unnecessarily detailed specifications, 
and unnecessarily burdensome contract clauses.

Sec. 1706. Personnel evaluation

  The head of each executive agency subject to division C shall ensure, 
with respect to the employees of that agency whose primary duties and 
responsibilities pertain to the award of contracts subject to the 
provisions of the Small Business and Federal Procurement Competition 
Enhancement Act of 1984 (Public Law 98-577, 98 Stat. 3066), that the 
performance appraisal system applicable to those employees affords 
appropriate recognition to, among other factors, efforts to--
      (1) increase competition and achieve cost savings through the 
    elimination of procedures that unnecessarily inhibit full and open 
    competition;
      (2) further the purposes of the Small Business and Federal 
    Procurement Competition Enhancement Act of 1984 (Public Law 98-577, 
    98 Stat. 3066) and the Defense Procurement Reform Act of 1984 
    (Public Law 98-525, title XII, 98 Stat. 2588); and
      (3) further other objectives and purposes of the Federal 
    acquisition system authorized by law.

Sec. 1707. Publication of proposed regulations

  (a) Covered Policies, Regulations, Procedures, and Forms.--
      (1) Required comment period.--Except as provided in subsection 
    (d), a procurement policy, regulation, procedure, or form 
    (including an amendment or modification thereto) may not take 
    effect until 60 days after it is published for public comment in 
    the Federal Register pursuant to subsection (b) if it--
          (A) relates to the expenditure of appropriated funds; and
          (B)(i) has a significant effect beyond the internal operating 
        procedures of the agency issuing the policy, regulation, 
        procedure, or form; or
          (ii) has a significant cost or administrative impact on 
        contractors or offerors.
      (2) Exception.--A policy, regulation, procedure, or form may take 
    effect earlier than 60 days after the publication date when there 
    are compelling circumstances for the earlier effective date, but 
    the effective date may not be less than 30 days after the 
    publication date.
  (b) Publication in Federal Register and Comment Period.--Subject to 
subsection (c), the head of the agency shall have published in the 
Federal Register a notice of the proposed procurement policy, 
regulation, procedure, or form and provide for a public comment period 
for receiving and considering the views of all interested parties on 
the proposal. The length of the comment period may not be less than 30 
days.
  (c) Contents of Notice.--Notice of a proposed procurement policy, 
regulation, procedure, or form prepared for publication in the Federal 
Register shall include--
      (1) the text of the proposal or, if it is impracticable to 
    publish the full text of the proposal, a summary of the proposal 
    and a statement specifying the name, address, and telephone number 
    of the officer or employee of the executive agency from whom the 
    full text may be obtained; and
      (2) a request for interested parties to submit comments on the 
    proposal and the name and address of the officer or employee of the 
    Federal Government designated to receive the comments.
  (d) Waiver.--The requirements of subsections (a) and (b) may be 
waived by the officer authorized to issue a procurement policy, 
regulation, procedure, or form if urgent and compelling circumstances 
make compliance with the requirements impracticable.
  (e) Effectiveness of Policy, Regulation, Procedure, or Form.--
      (1) Temporary basis.--A procurement policy, regulation, 
    procedure, or form for which the requirements of subsections (a) 
    and (b) are waived under subsection (d) is effective on a temporary 
    basis if--
          (A) a notice of the policy, regulation, procedure, or form is 
        published in the Federal Register and includes a statement that 
        the policy, regulation, procedure, or form is temporary; and
          (B) provision is made for a public comment period of 30 days 
        beginning on the date on which the notice is published.
      (2) Final policy, regulation, procedure, or form.--After 
    considering the comments received, the head of the agency waiving 
    the requirements of subsections (a) and (b) under subsection (d) 
    may issue the final procurement policy, regulation, procedure, or 
    form.

Sec. 1708. Procurement notice

  (a) Notice Requirement.--Except as provided in subsection (b)--
      (1) an executive agency intending to solicit bids or proposals 
    for a contract for property or services for a price expected to 
    exceed $10,000, but not to exceed $25,000, shall post, for not less 
    than 10 days, in a public place at the contracting office issuing 
    the solicitation a notice of solicitation described in subsection 
    (c);
      (2) an executive agency shall publish a notice of solicitation 
    described in subsection (c) if the agency intends to--
          (A) solicit bids or proposals for a contract for property or 
        services for a price expected to exceed $25,000; or
          (B) place an order, expected to exceed $25,000, under a basic 
        agreement, basic ordering agreement, or similar arrangement; 
        and
      (3) an executive agency awarding a contract for property or 
    services for a price exceeding $25,000, or placing an order 
    exceeding $25,000 under a basic agreement, basic ordering 
    agreement, or similar arrangement, shall furnish for publication a 
    notice announcing the award or order if there is likely to be a 
    subcontract under the contract or order.
  (b) Exemptions.--
      (1) In general.--A notice is not required under subsection (a) 
    if--
          (A) the proposed procurement is for an amount not greater 
        than the simplified acquisition threshold and is to be 
        conducted by--
              (i) using widespread electronic public notice of the 
            solicitation in a form that allows convenient and universal 
            user access through a single, Government-wide point of 
            entry; and
              (ii) permitting the public to respond to the solicitation 
            electronically;
          (B) the notice would disclose the executive agency's needs 
        and disclosure would compromise national security;
          (C) the proposed procurement would result from acceptance 
        of--
              (i) an unsolicited proposal that demonstrates a unique 
            and innovative research concept and publication of a notice 
            of the unsolicited research proposal would disclose the 
            originality of thought or innovativeness of the proposal or 
            would disclose proprietary information associated with the 
            proposal; or
              (ii) a proposal submitted under section 9 of the Small 
            Business Act (15 U.S.C. 638);
          (D) the procurement is made against an order placed under a 
        requirements contract, a task order contract, or a delivery 
        order contract;
          (E) the procurement is made for perishable subsistence 
        supplies;
          (F) the procurement is for utility services, other than 
        telecommunication services, and only one source is available; 
        or
          (G) the procurement is for the services of an expert for use 
        in any litigation or dispute (including any reasonably 
        foreseeable litigation or dispute) involving the Federal 
        Government in a trial, hearing, or proceeding before a court, 
        administrative tribunal, or agency, or in any part of an 
        alternative dispute resolution process, whether or not the 
        expert is expected to testify.
      (2) Certain procurements.--The requirements of subsection (a)(2) 
    do not apply to a procurement--
          (A) under conditions described in paragraph (2), (3), (4), 
        (5), or (7) of section 3304(a) of this title or paragraph (2), 
        (3), (4), (5), or (7) of section 2304(c) of title 10; or
          (B) for which the head of the executive agency makes a 
        determination in writing, after consultation with the 
        Administrator and the Administrator of the Small Business 
        Administration, that it is not appropriate or reasonable to 
        publish a notice before issuing a solicitation.
      (3) Implementation consistent with international agreements.--
    Paragraph (1)(A) shall be implemented in a manner consistent with 
    applicable international agreements.
  (c) Contents of Notice.--Each notice of solicitation required by 
paragraph (1) or (2) of subsection (a) shall include--
      (1) an accurate description of the property or services to be 
    contracted for, which description--
          (A) shall not be unnecessarily restrictive of competition; 
        and
          (B) shall include, as appropriate, the agency nomenclature, 
        National Stock Number or other part number, and a brief 
        description of the item's form, fit, or function, physical 
        dimensions, predominant material of manufacture, or similar 
        information that will assist a prospective contractor to make 
        an informed business judgment as to whether a copy of the 
        solicitation should be requested;
      (2) provisions that--
          (A)(i) state whether the technical data required to respond 
        to the solicitation will not be furnished as part of the 
        solicitation; and
          (ii) identify the source in the Federal Government, if any, 
        from which the technical data may be obtained; and
          (B)(i) state whether an offeror or its product or service 
        must meet a qualification requirement in order to be eligible 
        for award; and
          (ii) if so, identify the office from which the qualification 
        requirement may be obtained;
      (3) the name, business address, and telephone number of the 
    contracting officer;
      (4) a statement that all responsible sources may submit a bid, 
    proposal, or quotation (as appropriate) that the agency shall 
    consider;
      (5) in the case of a procurement using procedures other than 
    competitive procedures, a statement of the reason justifying the 
    use of those procedures and the identity of the intended source; 
    and
      (6) in the case of a contract in an amount estimated to be 
    greater than $25,000 but not greater than the simplified 
    acquisition threshold, or a contract for the procurement of 
    commercial items using special simplified procedures--
          (A) a description of the procedures to be used in awarding 
        the contract; and
          (B) a statement specifying the periods for prospective 
        offerors and the contracting officer to take the necessary 
        preaward and award actions.
  (d) Electronic Publication of Notice of Solicitation, Award, or 
Order.--A notice of solicitation, award, or order required to be 
published under subsection (a) shall be published by electronic means. 
The notice must be electronically accessible in a form that allows 
convenient and universal user access through the single Government-wide 
point of entry designated in the Federal Acquisition Regulation.
  (e) Time Limitations.--
      (1) Issuing notice of solicitation and establishing deadline for 
    submitting bids and proposals.--An executive agency required by 
    subsection (a)(2) to publish a notice of solicitation may not--
          (A) issue the solicitation earlier than 15 days after the 
        date on which the notice is published; or
          (B) in the case of a contract or order expected to be greater 
        than the simplified acquisition threshold, establish a deadline 
        for the submission of all bids or proposals in response to the 
        notice required by subsection (a)(2) that--
              (i) in the case of a solicitation for research and 
            development, is earlier than 45 days after the date the 
            notice required for a bid or proposal for a contract 
            described in subsection (a)(2)(A) is published;
              (ii) in the case of an order under a basic agreement, 
            basic ordering agreement, or similar arrangement, is 
            earlier than 30 days after the date the notice required for 
            an order described in subsection (a)(2)(B) is published; or
              (iii) in any other case, is earlier than 30 days after 
            the date the solicitation is issued.
      (2) Establishing deadline when none provided by statute.--An 
    executive agency shall establish a deadline for the submission of 
    all bids or proposals in response to a solicitation for which a 
    deadline is not provided by statute. Each deadline for the 
    submission of offers shall afford potential offerors a reasonable 
    opportunity to respond.
      (3) Flexible deadlines.--The Administrator shall prescribe 
    regulations defining limited circumstances in which flexible 
    deadlines can be used under paragraph (1) for the issuance of 
    solicitations and the submission of bids or proposals for the 
    procurement of commercial items.
  (f) Consideration of Certain Timely Received Offers.--An executive 
agency intending to solicit offers for a contract for which a notice of 
solicitation is required to be posted under subsection (a)(1) shall 
ensure that contracting officers consider each responsive offer timely 
received from an offeror.
  (g) Availability of Complete Solicitation Package and Payment of 
Fee.--An executive agency shall make available to a business concern, 
or the authorized representative of a concern, the complete 
solicitation package for any on-going procurement announced pursuant to 
a notice of solicitation under subsection (a). An executive agency may 
require the payment of a fee, not exceeding the actual cost of 
duplication, for a copy of the package.

Sec. 1709. Contracting functions performed by Federal personnel

  (a) Covered Personnel.--Personnel referred to in subsection (b) are--
      (1) an employee, as defined in section 2105 of title 5;
      (2) a member of the armed forces; and
      (3) an individual assigned to a Federal agency pursuant to 
    subchapter VI of chapter 33 of title 5.
  (b) Limitation on Payment for Advisory and Assistance Services.--No 
individual who is not an individual described in subsection (a) may be 
paid by an executive agency for services to conduct evaluations or 
analyses of any aspect of a proposal submitted for an acquisition 
unless personnel described in subsection (a) with adequate training and 
capabilities to perform the evaluations and analyses are not readily 
available in the agency or another Federal agency. When administering 
this subsection, the head of each executive agency shall determine in 
accordance with standards and procedures prescribed in the Federal 
Acquisition Regulation whether--
      (1) a sufficient number of personnel described in subsection (a) 
    in the agency or another Federal agency are readily available to 
    perform a particular evaluation or analysis for the head of the 
    executive agency making the determination; and
      (2) the readily available personnel have the training and 
    capabilities necessary to perform the evaluation or analysis.
  (c) Certain Relationship Not Affected.--This section does not affect 
the relationship between the Federal Government and a Federally funded 
research and development center.

Sec. 1710. Public-private competition required before conversion to 
            contractor performance

  (a) Public-private competition.--
      (1) When conversion to contractor performance is allowed.--A 
    function of an executive agency performed by 10 or more agency 
    civilian employees may not be converted, in whole or in part, to 
    performance by a contractor unless the conversion is based on the 
    results of a public-private competition that--
          (A) formally compares the cost of performance of the function 
        by agency civilian employees with the cost of performance by a 
        contractor;
          (B) creates an agency tender, including a most efficient 
        organization plan, in accordance with Office of Management and 
        Budget Circular A76, as implemented on May 29, 2003, or any 
        successor circular;
          (C) includes the issuance of a solicitation;
          (D) determines whether the submitted offers meet the needs of 
        the executive agency with respect to factors other than cost, 
        including quality, reliability, and timeliness;
          (E) examines the cost of performance of the function by 
        agency civilian employees and the cost of performance of the 
        function by one or more contractors to demonstrate whether 
        converting to performance by a contractor will result in 
        savings to the Federal Government over the life of the 
        contract, including--
              (i) the estimated cost to the Federal Government (based 
            on offers received) for performance of the function by a 
            contractor;
              (ii) the estimated cost to the Federal Government for 
            performance of the function by agency civilian employees; 
            and
              (iii) an estimate of all other costs and expenditures 
            that the Federal Government would incur because of the 
            award of the contract;
          (F) requires continued performance of the function by agency 
        civilian employees unless the difference in the cost of 
        performance of the function by a contractor compared to the 
        cost of performance of the function by agency civilian 
        employees would, over all performance periods required by the 
        solicitation, be equal to or exceed the lesser of--
              (i) 10 percent of the personnel-related costs for 
            performance of that function in the agency tender; or
              (ii) $10,000,000; and
          (G) examines the effect of performance of the function by a 
        contractor on the agency mission associated with the 
        performance of the function.
      (2) Not a new requirement.--A function that is performed by the 
    executive agency and is reengineered, reorganized, modernized, 
    upgraded, expanded, or changed to become more efficient, but still 
    essentially provides the same service, shall not be considered a 
    new requirement.
      (3) Prohibitions.--In no case may a function being performed by 
    executive agency personnel be--
          (A) modified, reorganized, divided, or in any way changed for 
        the purpose of exempting the conversion of the function from 
        the requirements of this section; or
          (B) converted to performance by a contractor to circumvent a 
        civilian personnel ceiling.
  (b) Consulting With Affected Employees or Their Representatives.--
      (1) Consulting with affected employees.--Each civilian employee 
    of an executive agency responsible for determining under Office of 
    Management and Budget Circular A76 whether to convert to contractor 
    performance any function of the executive agency--
          (A) shall, at least monthly during the development and 
        preparation of the performance work statement and the 
        management efficiency study used in making that determination, 
        consult with civilian employees who will be affected by that 
        determination and consider the views of the employees on the 
        development and preparation of that statement and that study; 
        and
          (B) may consult with the employees on other matters relating 
        to that determination.
      (2) Consulting with representatives.--
          (A) Employees represented by a labor organization.--In the 
        case of employees represented by a labor organization accorded 
        exclusive recognition under section 7111 of title 5, 
        consultation with representatives of that labor organization 
        shall satisfy the consultation requirement in paragraph (1).
          (B) Employees not represented by a labor organization.--In 
        the case of employees other than employees referred to in 
        subparagraph (A), consultation with appropriate representatives 
        of those employees shall satisfy the consultation requirement 
        in paragraph (1).
      (3) Regulations.--The head of each executive agency shall 
    prescribe regulations to carry out this subsection. The regulations 
    shall include provisions for the selection or designation of 
    appropriate representatives of employees referred to in paragraph 
    (2)(B) for purposes of consultation required by paragraph (1).
  (c) Congressional Notification.--
      (1) Report.--Before commencing a public-private competition under 
    subsection (a), the head of an executive agency shall submit to 
    Congress a report containing the following:
          (A) The function for which the public-private competition is 
        to be conducted.
          (B) The location at which the function is performed by agency 
        civilian employees.
          (C) The number of agency civilian employee positions 
        potentially affected.
          (D) The anticipated length and cost of the public-private 
        competition, and a specific identification of the budgetary 
        line item from which funds will be used to cover the cost of 
        the public-private competition.
          (E) A certification that a proposed performance of the 
        function by a contractor is not a result of a decision by an 
        official of an executive agency to impose predetermined 
        constraints or limitations on agency civilian employees in 
        terms of man years, end strengths, full-time equivalent 
        positions, or maximum number of employees.
      (2) Examination of potential economic effect.--The report 
    required under paragraph (1) shall include an examination of the 
    potential economic effect of performance of the function by a 
    contractor on--
          (A) agency civilian employees who would be affected by such a 
        conversion in performance; and
          (B) the local community and the Federal Government, if more 
        than 50 agency civilian employees perform the function.
      (3) Objections to public-private competition.--
          (A) Grounds.--A representative individual or entity at a 
        facility where a public-private competition is conducted may 
        submit to the head of the executive agency an objection to the 
        public-private competition on the grounds that--
              (i) the report required by paragraph (1) has not been 
            submitted; or
              (ii) the certification required by paragraph (1)(E) was 
            not included in the report required by paragraph (1).
          (B) Deadlines.--The objection shall be in writing and shall 
        be submitted within 90 days after the following date:
              (i) In the case of a failure to submit the report when 
            required, the date on which the representative individual 
            or an official of the representative entity authorized to 
            pose the objection first knew or should have known of that 
            failure.
              (ii) In the case of a failure to include the 
            certification in a submitted report, the date on which the 
            report was submitted to Congress.
          (C) Report and certification required before solicitation or 
        award of contract.--If the head of the executive agency 
        determines that the report required by paragraph (1) was not 
        submitted or that the required certification was not included 
        in the submitted report, the function for which the public-
        private competition was conducted for which the objection was 
        submitted may not be the subject of a solicitation of offers 
        for, or award of, a contract until, respectively, the report is 
        submitted or a report containing the certification in full 
        compliance with the certification requirement is submitted.
  (d) Exemption for the Purchase of Products and Services of the Blind 
and Other Severely Disabled People.--This section shall not apply to a 
commercial or industrial type function of an executive agency that is--
      (1) included on the procurement list established pursuant to 
    section 8503 of this title; or
      (2) planned to be changed to performance by a qualified nonprofit 
    agency for the blind or by a qualified nonprofit agency for other 
    severely disabled people in accordance with chapter 85 of this 
    title.
  (e) Inapplicability During War or Emergency.--The provisions of this 
section shall not apply during war or during a period of national 
emergency declared by the President or Congress.

Sec. 1711. Value engineering

  Each executive agency shall establish and maintain cost-effective 
procedures and processes for analyzing the functions of a program, 
project, system, product, item of equipment, building, facility, 
service, or supply of the agency. The analysis shall be--
      (1) performed by qualified agency or contractor personnel; and
      (2) directed at improving performance, reliability, quality, 
    safety, and life cycle costs.

Sec. 1712. Record requirements

  (a) Maintaining Records on Computer.--Each executive agency shall 
establish and maintain for 5 years a computer file, by fiscal year, 
containing unclassified records of all procurements greater than the 
simplified acquisition threshold in that fiscal year.
  (b) Contents.--The record established under subsection (a) shall 
include, with respect to each procurement carried out using--
      (1) competitive procedures--
          (A) the date of contract award;
          (B) information identifying the source to whom the contract 
        was awarded;
          (C) the property or services the Federal Government obtains 
        under the procurement; and
          (D) the total cost of the procurement; or
      (2) procedures other than competitive procedures--
          (A) the information described in paragraph (1);
          (B) the reason under section 3304(a) of this title or section 
        2304(c) of title 10 for using the procedures; and
          (C) the identity of the organization or activity that 
        conducted the procurement.
  (c) Separate Record Category for Procurements Resulting in One Bid or 
Proposal.--Information included in a record pursuant to subsection 
(b)(1) that relates to procurements resulting in the submission of a 
bid or proposal by only one responsible source shall be separately 
categorized from the information relating to other procurements 
included in the record. The record of that information shall be 
designated ``noncompetitive procurements using competitive 
procedures''.
  (d) Transmission and Data Entry of Information.--The head of each 
executive agency shall--
      (1) ensure the accuracy of the information included in the record 
    established and maintained by the agency under subsection (a); and
      (2) transmit in a timely manner such information to the General 
    Services Administration for entry into the Federal Procurement Data 
    System referred to in section 1122(a)(4) of this title, or any 
    successor system.

Sec. 1713. Procurement data

  (a) Definitions.--In this section:
      (1) Qualified hubzone small business concern.--The term 
    ``qualified HUBZone small business concern'' has the meaning given 
    that term in section 3(p) of the Small Business Act (15 U.S.C. 
    632(p)).
      (2) Small business concern owned and controlled by socially and 
    economically disadvantaged individuals.--The term ``small business 
    concern owned and controlled by socially and economically 
    disadvantaged individuals'' has the meaning given that term in 
    section 8(d) of the Small Business Act (15 U.S.C. 637(d)).
      (3) Small business concern owned and controlled by women.--The 
    term ``small business concern owned and controlled by women'' has 
    the meaning given that term in section 8(d) of the Small Business 
    Act (15 U.S.C. 637(d)) and section 204 of the Women's Business 
    Ownership Act of 1988 (Public Law 100-533, 102 Stat. 2692).
  (b) Reporting.--Each Federal agency shall report to the Office of 
Federal Procurement Policy the number of qualified HUBZone small 
business concerns, the number of small businesses owned and controlled 
by women, and the number of small business concerns owned and 
controlled by socially and economically disadvantaged individuals, by 
gender, that are first time recipients of contracts from the agency. 
The Office shall take appropriate action to ascertain, for each fiscal 
year, the number of those small businesses that have newly entered the 
Federal market.

             CHAPTER 19--SIMPLIFIED ACQUISITION PROCEDURES

Sec.
1901.  Simplified acquisition procedures.
1902.  Procedures applicable to purchases below micro-purchase 
          threshold.
1903.  Special emergency procurement authority.
1904.  Certain transactions for defense against attack.
1905.  List of laws inapplicable to contracts or subcontracts not 
          greater than simplified acquisition threshold.
1906.  List of laws inapplicable to procurements of commercial items.
1907.  List of laws inapplicable to procurements of commercially 
          available off-the-shelf items.
1908.  Inflation adjustment of acquisition-related dollar thresholds.

Sec. 1901. Simplified acquisition procedures

  (a) When Procedures Are To Be Used.--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--
      (1) not greater than the simplified acquisition threshold; and
      (2) greater than the simplified acquisition threshold but not 
    greater than $5,000,000 for which the contracting officer 
    reasonably expects, based on the nature of the property or services 
    sought and on market research, that offers will include only 
    commercial items.
  (b) Prohibition on Dividing Purchases.--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 
to use the simplified acquisition procedures required by subsection 
(a).
  (c) Promotion of Competition Required.--When using simplified 
acquisition procedures, the head of an executive agency shall promote 
competition to the maximum extent practicable.
  (d) Consideration of Offers Timely Received.--The simplified 
acquisition procedures contained in the Federal Acquisition Regulation 
shall include a requirement that a contracting officer consider each 
responsive offer timely received from an eligible offeror.
  (e) Special Rules for Commercial Items.--The Federal Acquisition 
Regulation shall provide that an executive agency using special 
simplified procedures to purchase commercial items--
      (1) shall publish a notice in accordance with section 1708 of 
    this title and, as provided in section 1708(c)(4) of this title, 
    permit all responsible sources to submit a bid, proposal, or 
    quotation (as appropriate) that the agency shall consider;
      (2) 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 section 2304(f) of title 10 or section 3304(e) of 
    this title, as applicable; and
      (3) shall include in the contract file a written description of 
    the procedures used in awarding the contract and the number of 
    offers received.

Sec. 1902. Procedures applicable to purchases below micro-purchase 
            threshold

  (a) Definition.--For purposes of this section, the micro-purchase 
threshold is $3,000.
  (b) Compliance With Certain Requirements and Nonapplicability of 
Certain Authority.--
      (1) Compliance with certain requirements.--The head of each 
    executive agency shall ensure that procuring activities of that 
    agency, when awarding a contract with a price exceeding the micro-
    purchase threshold, comply with the requirements of section 8(a) of 
    the Small Business Act (15 U.S.C. 637(a)), section 2323 of title 
    10, and section 7102 of the Federal Acquisition Streamlining Act of 
    1994 (Public Law 103-355, 15 U.S.C. 644 note).
      (2) Nonapplicability of certain authority.--The authority under 
    part 13.106(a)(1) of the Federal Acquisition Regulation (48 C.F.R. 
    13.106(a)(1)), as in effect on November 18, 1993, to make purchases 
    without securing competitive quotations does not apply to a 
    purchase with a price exceeding the micro-purchase threshold.
  (c) Nonapplicability of Certain Provisions.--An executive agency 
purchase with an anticipated value of the micro-purchase threshold or 
less is not subject to section 15(j) of the Small Business Act (15 
U.S.C. 644(j)) and chapter 83 of this title.
  (d) Purchases Without Competitive Quotations.--A purchase not greater 
than $3,000 may be made without obtaining competitive quotations if an 
employee of an executive agency or a member of the armed forces, 
authorized to do so, determines that the price for the purchase is 
reasonable.
  (e) Equitable Distribution.--Purchases not greater than $3,000 shall 
be distributed equitably among qualified suppliers.
  (f) Implementation Through Federal Acquisition Regulation.--This 
section shall be implemented through the Federal Acquisition 
Regulation.

Sec. 1903. Special emergency procurement authority

  (a) Applicability.--The authorities provided in subsections (b) and 
(c) apply with respect to a procurement of property or services by or 
for an executive agency that the head of the executive agency 
determines are to be used--
      (1) in support of a contingency operation (as defined in section 
    101(a) of title 10); or
      (2) to facilitate the defense against or recovery from nuclear, 
    biological, chemical, or radiological attack against the United 
    States.
  (b) Increased Thresholds and Limitation.--For a procurement to which 
this section applies under subsection (a)--
      (1) the amount specified in section 1902(a), (d), and (e) of this 
    title shall be deemed to be--
          (A) $15,000 in the case of a contract to be awarded and 
        performed, or purchase to be made, in the United States; and
          (B) $25,000 in the case of a contract to be awarded and 
        performed, or purchase to be made, outside the United States;
      (2) the term ``simplified acquisition threshold'' means--
          (A) $250,000 in the case of a contract to be awarded and 
        performed, or purchase to be made, in the United States; and
          (B) $1,000,000 in the case of a contract to be awarded and 
        performed, or purchase to be made, outside the United States; 
        and
      (3) the $5,000,000 limitation in sections 1901(a)(2) and 
    3305(a)(2) of this title and section 2304(g)(1)(B) of title 10 is 
    deemed to be $10,000,000.
  (c) Authority To Treat Property or Service as Commercial Item.--
      (1) In general.--The head of an executive agency carrying out a 
    procurement of property or a service to which this section applies 
    under subsection (a)(2) may treat the property or service as a 
    commercial item for the purpose of carrying out the procurement.
      (2) Certain contracts not exempt from standards or 
    requirements.--A contract in an amount of more than $15,000,000 
    that is awarded on a sole source basis for an item or service 
    treated as a commercial item under paragraph (1) is not exempt 
    from--
          (A) cost accounting standards prescribed under section 1502 
        of this title; or
          (B) cost or pricing data requirements (commonly referred to 
        as truth in negotiating) under chapter 35 of this title and 
        section 2306a of title 10.

Sec. 1904. Certain transactions for defense against attack

  (a) Authority.--
      (1) In general.--The head of an executive agency that engages in 
    basic research, applied research, advanced research, and 
    development projects that are necessary to the responsibilities of 
    the executive agency in the field of research and development and 
    have the potential to facilitate defense against or recovery from 
    terrorism or nuclear, biological, chemical, or radiological attack 
    may exercise the same authority (subject to the same restrictions 
    and conditions) with respect to the research and projects as the 
    Secretary of Defense may exercise under section 2371 of title 10, 
    except for subsections (b) and (f) of section 2371.
      (2) Prototype projects.--The head of an executive agency, under 
    the authority of paragraph (1), may carry out prototype projects 
    that meet the requirements of paragraph (1) in accordance with the 
    requirements and conditions provided for carrying out prototype 
    projects under section 845 of the National Defense Authorization 
    Act for Fiscal Year 1994 (Public Law 103-160, 10 U.S.C. 2371 note), 
    including that, to the maximum extent practicable, competitive 
    procedures shall be used when entering into agreements to carry out 
    projects under section 845(a) of that Act and that the period of 
    authority to carry out projects under section 845(a) of that Act 
    terminates as provided in section 845(i) of that Act.
      (3) Application of requirements and conditions.--In applying the 
    requirements and conditions of section 845 of that Act under this 
    subsection--
          (A) section 845(c) of that Act shall apply with respect to 
        prototype projects carried out under paragraph (2); and
          (B) the Director of the Office of Management and Budget shall 
        perform the functions of the Secretary of Defense under section 
        845(d) of that Act.
      (4) Applicability to selected executive agencies.--
          (A) Office of management and budget.--The head of an 
        executive agency may exercise authority under this subsection 
        for a project only if authorized by the Director of the Office 
        of Management and Budget.
          (B) Department of homeland security.--Authority under this 
        subsection does not apply to the Secretary of Homeland Security 
        while section 831 of the Homeland Security Act of 2002 (6 
        U.S.C. 391) is in effect.
  (b) Regulations.--The Director of the Office of Management and Budget 
shall prescribe regulations to carry out this section. No transaction 
may be conducted under the authority of this section before the 
regulations take effect.
  (c) Annual Report.--The annual report of the head of an executive 
agency that is required under section 2371(h) of title 10, as applied 
to the head of the executive agency by subsection (a), shall be 
submitted to the Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Oversight and Government 
Reform of the House of Representatives.
  (d) Termination of Authority.--The authority to carry out 
transactions under subsection (a) terminates on September 30, 2008.

Sec. 1905. List of laws inapplicable to contracts or subcontracts not 
            greater than simplified acquisition threshold

  (a) Definition.--In this section, the term ``Council'' has the 
meaning given that term in section 1301 of this title.
  (b) Inclusion in Federal Acquisition Regulation.--
      (1) In general.--The Federal Acquisition Regulation shall include 
    a list of provisions of law that are inapplicable to contracts or 
    subcontracts in amounts not greater than the simplified acquisition 
    threshold. A provision of law properly included on the list 
    pursuant to paragraph (2) does not apply to contracts or 
    subcontracts in amounts not greater than the simplified acquisition 
    threshold that are made by an executive agency. This section does 
    not render a provision of law not included on the list inapplicable 
    to contracts and subcontracts in amounts not greater than the 
    simplified acquisition threshold.
      (2) Laws enacted after october 13, 1994.--A provision of law 
    described in subsection (c) that is enacted after October 13, 1994, 
    shall be included on the list of inapplicable provisions of laws 
    required by paragraph (1) unless the Council makes a written 
    determination that it would not be in the best interest of the 
    Federal Government to exempt contracts or subcontracts in amounts 
    not greater than the simplified acquisition threshold from the 
    applicability of the provision.
  (c) Covered Law.--A provision of law referred to in subsection (b)(2) 
is a provision of law that the Council determines sets forth policies, 
procedures, requirements, or restrictions for the procurement of 
property or services by the Federal Government, except for a provision 
of law that--
      (1) provides for criminal or civil penalties; or
      (2) specifically refers to this section and provides that, 
    notwithstanding this section, it shall be applicable to contracts 
    or subcontracts in amounts not greater than the simplified 
    acquisition threshold.
  (d) Petition.--A person may petition the Administrator to take 
appropriate action when a provision of law described in subsection (c) 
is not included on the list of inapplicable provisions of law as 
required by subsection (b) and the Council has not made a written 
determination pursuant to subsection (b)(2). The Administrator shall 
revise the Federal Acquisition Regulation to include the provision on 
the list of inapplicable provisions of law unless the Council makes a 
determination pursuant to subsection (b)(2) within 60 days after the 
petition is received.

Sec. 1906. List of laws inapplicable to procurements of commercial 
            items

  (a) Definition.--In this section, the term ``Council'' has the 
meaning given that term in section 1301 of this title.
  (b) Contracts.--
      (1) Inclusion in federal acquisition regulation.--The Federal 
    Acquisition Regulation shall include a list of provisions of law 
    that are inapplicable to contracts for the procurement of 
    commercial items. A provision of law properly included on the list 
    pursuant to paragraph (2) does not apply to purchases of commercial 
    items by an executive agency. This section does not render a 
    provision of law not included on the list inapplicable to contracts 
    for the procurement of commercial items.
      (2) Laws enacted after october 13, 1994.--A provision of law 
    described in subsection (d) that is enacted after October 13, 1994, 
    shall be included on the list of inapplicable provisions of law 
    required by paragraph (1) unless the Council makes a written 
    determination that it would not be in the best interest of the 
    Federal Government to exempt contracts for the procurement of 
    commercial items from the applicability of the provision.
  (c) Subcontracts.--
      (1) Definition.--In this subsection, the term ``subcontract'' 
    includes a transfer of commercial items between divisions, 
    subsidiaries, or affiliates of a contractor or subcontractor.
      (2) Inclusion in federal acquisition regulation.--The Federal 
    Acquisition Regulation shall include a list of provisions of law 
    that are inapplicable to subcontracts under a contract or 
    subcontract for the procurement of commercial items. A provision of 
    law properly included on the list pursuant to paragraph (3) does 
    not apply to those subcontracts. This section does not render a 
    provision of law not included on the list inapplicable to 
    subcontracts under a contract for the procurement of commercial 
    items.
      (3) Provisions to be excluded from list.--A provision of law 
    described in subsection (d) shall be included on the list of 
    inapplicable provisions of law required by paragraph (2) unless the 
    Council makes a written determination that it would not be in the 
    best interest of the Federal Government to exempt subcontracts 
    under a contract for the procurement of commercial items from the 
    applicability of the provision.
      (4) Waiver not authorized.--This subsection does not authorize 
    the waiver of the applicability of any provision of law with 
    respect to any subcontract under a contract with a prime contractor 
    reselling or distributing commercial items of another contractor 
    without adding value.
  (d) Covered Law.--A provision of law referred to in subsections 
(b)(2) and (c) is a provision of law that the Council determines sets 
forth policies, procedures, requirements, or restrictions for the 
procurement of property or services by the Federal Government, except 
for a provision of law that--
      (1) provides for criminal or civil penalties; or
      (2) specifically refers to this section and provides that, 
    notwithstanding this section, it shall be applicable to contracts 
    for the procurement of commercial items.
  (e) Petition.--A person may petition the Administrator to take 
appropriate action when a provision of law described in subsection (d) 
is not included on the list of inapplicable provisions of law as 
required by subsection (b) or (c) and the Council has not made a 
written determination pursuant to subsection (b)(2) or (c)(3). The 
Administrator shall revise the Federal Acquisition Regulation to 
include the provision on the list of inapplicable provisions of law 
unless the Council makes a determination pursuant to subsection (b)(2) 
or (c)(3) within 60 days after the petition is received.

Sec. 1907. List of laws inapplicable to procurements of commercially 
            available off-the-shelf items

  (a) Inclusion in Federal Acquisition Regulation.--
      (1) In general.--The Federal Acquisition Regulation shall include 
    a list of provisions of law that are inapplicable to contracts for 
    the procurement of commercially available off-the-shelf items. A 
    provision of law properly included on the list pursuant to 
    paragraph (2) does not apply to contracts for the procurement of 
    commercially available off-the-shelf items. This section does not 
    render a provision of law not included on the list inapplicable to 
    contracts for the procurement of commercially available off-the-
    shelf items.
      (2) Laws to be included.--A provision of law described in 
    subsection (b) shall be included on the list of inapplicable 
    provisions of law required by paragraph (1) unless the 
    Administrator makes a written determination that it would not be in 
    the best interest of the Federal Government to exempt contracts for 
    the procurement of commercially available off-the-shelf items from 
    the applicability of the provision.
      (3) Other authorities or responsibilities not affected.--This 
    section does not modify, supersede, impair, or restrict authorities 
    or responsibilities under--
          (A) section 15 of the Small Business Act (15 U.S.C. 644); or
          (B) bid protest procedures developed under the authority of--
              (i) subchapter V of chapter 35 of title 31;
              (ii) section 2305(e) and (f) of title 10; or
              (iii) sections 3706 and 3707 of this title.
  (b) Covered Law.--Except as provided in subsection (a)(3), a 
provision of law referred to in subsection (a)(1) is a provision of law 
that the Administrator determines imposes Federal Government-unique 
policies, procedures, requirements, or restrictions for the procurement 
of property or services on persons whom the Federal Government has 
awarded contracts for the procurement of commercially available off-
the-shelf items, except for a provision of law that--
      (1) provides for criminal or civil penalties; or
      (2) specifically refers to this section and provides that, 
    notwithstanding this section, it shall be applicable to contracts 
    for the procurement of commercially available off-the-shelf items.

Sec. 1908. Inflation adjustment of acquisition-related dollar 
            thresholds

  (a) Definition.--In this section, the term ``Council'' has the 
meaning given that term in section 1301 of this title.
  (b) Application.--
      (1) In general.--Except as provided in paragraph (2), the 
    requirement for adjustment under subsection (c) applies to a dollar 
    threshold that is specified in law as a factor in defining the 
    scope of the applicability of a policy, procedure, requirement, or 
    restriction provided in that law to the procurement of property or 
    services by an executive agency, as the Council determines.
      (2) Exceptions.--Subsection (c) does not apply to dollar 
    thresholds--
          (A) in chapter 67 of this title;
          (B) in sections 3141 to 3144, 3146, and 3147 of title 40; or
          (C) the United States Trade Representative establishes 
        pursuant to title III of the Trade Agreements Act of 1979 (19 
        U.S.C. 2511 et seq.).
      (3) Relationship to other inflation adjustment authorities.--This 
    section supersedes the applicability of other provisions of law 
    that provide for the adjustment of a dollar threshold that is 
    adjustable under this section.
  (c) Requirement for Periodic Adjustment.--
      (1) Baseline constant dollar value.--For purposes of paragraph 
    (2), the baseline constant dollar value for a dollar threshold--
          (A) in effect on October 1, 2000, that was first specified in 
        a law that took effect on or before October 1, 2000, is the 
        October 1, 2000, constant dollar value of that dollar 
        threshold; and
          (B) specified in a law that takes effect after October 1, 
        2000, is the constant dollar value of that threshold as of the 
        effective date of that dollar threshold pursuant to that law.
      (2) Adjustment.--On October 1 of each year evenly divisible by 5, 
    the Council shall adjust each acquisition-related dollar threshold 
    provided by law, as described in subsection (b)(1), to the baseline 
    constant dollar value of that threshold.
      (3) Exclusive means of adjustment.--A dollar threshold adjustable 
    under this section shall be adjusted only as provided in this 
    section.
  (d) Publication.--The Council shall publish a notice of the adjusted 
dollar thresholds under this section in the Federal Register. The 
thresholds take effect on the date of publication.
  (e) Calculation.--An adjustment under this section shall be--
      (1) calculated on the basis of changes in the Consumer Price 
    Index for all-urban consumers published monthly by the Secretary of 
    Labor; and
      (2) rounded, in the case of a dollar threshold that on the day 
    before the adjustment is--
          (A) less than $10,000, to the nearest $500;
          (B) not less than $10,000, but less than $100,000, to the 
        nearest $5,000;
          (C) not less than $100,000, but less than $1,000,000, to the 
        nearest $50,000; and
          (D) $1,000,000 or more, to the nearest $500,000.
  (f) Petition for Inclusion of Omitted Threshold.--
      (1) Petition submitted to administrator.--A person may request 
    adjustment of a dollar threshold adjustable under this section that 
    is not included in a notice of adjustment published under 
    subsection (d) by submitting a petition for adjustment to the 
    Administrator.
      (2) Actions of administrator.--On receipt of a petition for 
    adjustment of a dollar threshold under paragraph (1), the 
    Administrator--
          (A) shall determine, in writing, whether the dollar threshold 
        is required to be adjusted under this section; and
          (B) on determining that it should be adjusted, shall publish 
        in the Federal Register a revised notice of the adjustment 
        dollar thresholds under this section that includes the 
        adjustment of the dollar threshold covered by the petition.
      (3) Effective date of adjustment by petition.--The adjustment of 
    a dollar threshold pursuant to a petition under this subsection 
    takes effect on the date the revised notice adding the adjustment 
    under paragraph (2)(B) is published.

     CHAPTER 21--RESTRICTIONS ON OBTAINING AND DISCLOSING CERTAIN 
                              INFORMATION

Sec.
2101.  Definitions.
2102.  Prohibitions on disclosing and obtaining procurement information.
2103.  Actions required of procurement officers when contacted regarding 
          non-Federal employment.
2104.  Prohibition on former official's acceptance of compensation from 
          contractor.
2105.  Penalties and administrative actions.
2106.  Reporting information believed to constitute evidence of offense.
2107.  Savings provisions.

Sec. 2101. Definitions

  In this chapter:
      (1) Contracting officer.--The term ``contracting officer'' means 
    an individual 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 the contract.
      (2) Contractor bid or proposal information.--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 previously has not 
    been made available to the public or disclosed publicly:
          (A) Cost or pricing data (as defined in section 2306a(h) of 
        title 10 with respect to procurements subject to that section 
        and section 3501(a) of this title 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.
      (3) Federal agency.--The term ``Federal agency'' has the meaning 
    given that term in section 102 of title 40.
      (4) Federal agency procurement.--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) Official.--The term ``official'' means--
          (A) an officer, as defined in section 2104 of title 5;
          (B) an employee, as defined in section 2105 of title 5; and
          (C) a member of the uniformed services, as defined in section 
        2101(3) of title 5.
      (6) Protest.--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 subchapter V of chapter 35 
    of title 31.
      (7) Source selection information.--The term ``source selection 
    information'' means any of the following information prepared for 
    use by a Federal agency to evaluate a bid or proposal to enter into 
    a Federal agency procurement contract, if that information 
    previously has not been 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) 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, the head's 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.

Sec. 2102. Prohibitions on disclosing and obtaining procurement 
            information

  (a) Prohibition on Disclosing Procurement Information.--
      (1) In general.--Except as provided by law, a person described in 
    paragraph (3) shall not 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) Employee of private sector organization.--In addition to the 
    restriction in paragraph (1), an employee of a private sector 
    organization assigned to an agency under chapter 37 of title 5 
    shall not knowingly disclose contractor bid or proposal information 
    or source selection information during the 3-year period after the 
    employee's assignment ends, except as provided by law.
      (3) Application.--Paragraph (1) applies to a person that--
          (A)(i) is a present or former official of the Federal 
        Government; or
          (ii) is acting or has acted for or on behalf of, or who is 
        advising or has advised the Federal Government 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.--Except as 
provided by law, a person shall not 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.

Sec. 2103. Actions required of procurement officers when contacted 
            regarding non-Federal employment

  (a) Actions Required.--An agency official participating personally 
and substantially in a Federal agency procurement for a contract in 
excess of the simplified acquisition threshold who contacts or is 
contacted by a person that is a bidder or offeror in that Federal 
agency procurement regarding possible non-Federal employment for that 
official shall--
      (1) promptly report the contact in writing to the official's 
    supervisor and to the designated agency ethics official (or 
    designee) of the agency in which the official is employed; and
      (2)(A) reject the possibility of non-Federal employment; or
      (B) disqualify himself or herself from further personal and 
    substantial participation in that Federal agency procurement until 
    the agency authorizes the official to resume participation in the 
    procurement, in accordance with the requirements of section 208 of 
    title 18 and applicable agency regulations on the grounds that--
          (i) the person is no longer a bidder or offeror in that 
        Federal agency procurement; or
          (ii) all discussions with the bidder or offeror regarding 
        possible non-Federal employment have terminated without an 
        agreement or arrangement for employment.
  (b) Retention of Reports.--The agency shall retain each report 
required by this section for not less than 2 years following the 
submission of the report. The reports shall be made available to the 
public on request, except that any part of a report that is exempt from 
the disclosure requirements of section 552 of title 5 under subsection 
(b)(1) of that section may be withheld from disclosure to the public.
  (c) Persons Subject to Penalties.--The following are subject to the 
penalties and administrative actions set forth in section 2105 of this 
title:
      (1) An official who knowingly fails to comply with the 
    requirements of this section.
      (2) A bidder or offeror that engages in employment discussions 
    with an official who is subject to the restrictions of this 
    section, knowing that the official has not complied with paragraph 
    (1) or (2) of subsection (a).

Sec. 2104. Prohibition on former official's acceptance of compensation 
            from contractor

  (a) Prohibition.--A former official of a Federal agency may not 
accept compensation from a contractor as an employee, officer, 
director, or consultant of the contractor within one year after the 
official--
      (1) served, when the contractor was selected or awarded a 
    contract, as the procuring contracting officer, the source 
    selection authority, a member of the source selection evaluation 
    board, or the chief of a financial or technical evaluation team in 
    a procurement in which that contractor was selected for award of a 
    contract in excess of $10,000,000;
      (2) served as the program manager, deputy program manager, or 
    administrative contracting officer for a contract in excess of 
    $10,000,000 awarded to that contractor; or
      (3) personally made for the Federal agency a decision to--
          (A) award a contract, subcontract, modification of a contract 
        or subcontract, or a task order or delivery order in excess of 
        $10,000,000 to that contractor;
          (B) establish overhead or other rates applicable to one or 
        more contracts for that contractor that are valued in excess of 
        $10,000,000;
          (C) approve issuance of one or more contract payments in 
        excess of $10,000,000 to that contractor; or
          (D) pay or settle a claim in excess of $10,000,000 with that 
        contractor.
  (b) When Compensation May Be Accepted.--Subsection (a) does not 
prohibit a former official of a Federal agency from accepting 
compensation from a division or affiliate of a contractor that does not 
produce the same or similar products or services as the entity of the 
contractor that is responsible for the contract referred to in 
paragraph (1), (2), or (3) of subsection (a).
  (c) Implementing Regulations.--Regulations implementing this section 
shall include procedures for an official or former official of a 
Federal agency to request advice from the appropriate designated agency 
ethics official regarding whether the official or former official is or 
would be precluded by this section from accepting compensation from a 
particular contractor.
  (d) Persons Subject to Penalties.--The following are subject to the 
penalties and administrative actions set forth in section 2105 of this 
title:
      (1) A former official who knowingly accepts compensation in 
    violation of this section.
      (2) A contractor that provides compensation to a former official 
    knowing that the official accepts the compensation in violation of 
    this section.

Sec. 2105. Penalties and administrative actions

  (a) Criminal Penalties.--A person that violates section 2102 of this 
title to exchange information covered by section 2102 of this title for 
anything of value or to obtain or give a person a competitive advantage 
in the award of a Federal agency procurement contract shall be fined 
under title 18, imprisoned for not more than 5 years, or both.
  (b) Civil Penalties.--The Attorney General may bring a civil action 
in an appropriate district court of the United States against a person 
that engages in conduct that violates section 2102, 2103, or 2104 of 
this title. On proof of that conduct by a preponderance of the 
evidence--
      (1) an individual is liable to the Federal Government for a civil 
    penalty of not more than $50,000 for each violation plus twice the 
    amount of compensation that the individual received or offered for 
    the prohibited conduct; and
      (2) an organization is liable to the Federal Government for a 
    civil penalty of not more than $500,000 for each violation plus 
    twice the amount of compensation that the organization received or 
    offered for the prohibited conduct.
  (c) Administrative Actions.--
      (1) Types of action that federal agency may take.--A Federal 
    agency that receives information that a contractor or a person has 
    violated section 2102, 2103, or 2104 of this title shall consider 
    taking one or more of the following actions, as appropriate:
          (A) Canceling the Federal agency procurement, if a contract 
        has not yet been awarded.
          (B) Rescinding a contract with respect to which--
              (i) the contractor or someone acting for the contractor 
            has been convicted for an offense punishable under 
            subsection (a); or
              (ii) the head of the agency that awarded the contract has 
            determined, based on a preponderance of the evidence, that 
            the contractor or a person acting for the contractor has 
            engaged in conduct constituting the offense.
          (C) Initiating a suspension or debarment proceeding for the 
        protection of the Federal Government in accordance with 
        procedures in the Federal Acquisition Regulation.
          (D) Initiating an adverse personnel action, pursuant to the 
        procedures in chapter 75 of title 5 or other applicable law or 
        regulation.
      (2) Amount government entitled to recover.--When a Federal agency 
    rescinds a contract pursuant to paragraph (1)(B), the Federal 
    Government is entitled to recover, in addition to any penalty 
    prescribed by law, the amount expended under the contract.
      (3) Present responsibility affected by conduct.--For purposes of 
    a suspension or debarment proceeding initiated pursuant to 
    paragraph (1)(C), engaging in conduct constituting an offense under 
    section 2102, 2103, or 2104 of this title affects the present 
    responsibility of a Federal Government contractor or subcontractor.

Sec. 2106. Reporting information believed to constitute evidence of 
            offense

  A person may not file a protest against the award or proposed award 
of a Federal agency procurement contract alleging a violation of 
section 2102, 2103, or 2104 of this title, and the Comptroller General 
may not consider that allegation in deciding a protest, unless the 
person, no later than 14 days after the person first discovered the 
possible violation, reported to the Federal agency responsible for the 
procurement the information that the person believed constitutes 
evidence of the offense.

Sec. 2107. Savings provisions

  This chapter does not--
      (1) restrict the disclosure of information to, or its receipt by, 
    a 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 
    official 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 Comptroller General in the course of a protest 
    against the award or proposed award of a Federal agency procurement 
    contract; or
      (7) limit the applicability of a requirement, sanction, contract 
    penalty, or remedy established under another law or regulation.

                       CHAPTER 23--MISCELLANEOUS

Sec.
2301.  Use of electronic commerce in Federal procurement.
2302.  Rights in technical data.
2303.  Ethics safeguards related to contractor conflicts of interest.
2304.  Conflict of interest standards for consultants.
2305.  Authority of Director of Office of Management and Budget not 
          affected.
2306.  Openness of meetings.
2307.  Comptroller General's access to information.
2308.  Modular contracting for information technology.
2309.  Protection of constitutional rights of contractors.
2310.  Performance-based contracts or task orders for services to be 
          treated as contracts for the procurement of commercial items.
2311.  Enhanced transparency on interagency contracting and other 
          transactions.
2312.  Contingency Contracting Corps.
2313.  Database for Federal agency contract and grant officers and 
          suspension and debarment officials.

Sec. 2301. Use of electronic commerce in Federal procurement

  (a) Definition.--For the purposes of this section, the term 
``electronic commerce'' means electronic techniques for accomplishing 
business transactions, including electronic mail or messaging, World 
Wide Web technology, electronic bulletin boards, purchase cards, 
electronic funds transfers, and electronic data interchange.
  (b) Establishment, Maintenance, and Use of Electronic Commerce 
Procedures and Processes.--The head of each executive agency, after 
consulting with the Administrator, shall establish, maintain, and use, 
to the maximum extent that is practicable and cost-effective, 
procedures and processes that employ electronic commerce in the conduct 
and administration of the procurement system of the agency.
  (c) Applicable Standards.--In conducting electronic commerce, the 
head of an executive agency shall apply nationally and internationally 
recognized standards that broaden interoperability and ease the 
electronic interchange of information.
  (d) Requirements of Systems, Technologies, Procedures, and 
Processes.--The head of each executive agency shall ensure that 
systems, technologies, procedures, and processes established pursuant 
to this section--
      (1) are implemented with uniformity throughout the agency, to the 
    extent practicable;
      (2) are implemented only after granting due consideration to the 
    use or partial use, as appropriate, of existing electronic commerce 
    and electronic data interchange systems and infrastructures such as 
    the Federal acquisition computer network architecture known as 
    FACNET;
      (3) facilitate access to Federal Government procurement 
    opportunities, including opportunities for small business concerns, 
    socially and economically disadvantaged small business concerns, 
    and business concerns owned predominantly by women; and
      (4) ensure that any notice of agency requirements or agency 
    solicitation for contract opportunities is provided in a form that 
    allows convenient and universal user access through a single, 
    Government-wide point of entry.
  (e) Implementation.--In carrying out the requirements of this 
section, the Administrator shall--
      (1) issue policies to promote, to the maximum extent practicable, 
    uniform implementation of this section by executive agencies, with 
    due regard for differences in program requirements among agencies 
    that may require departures from uniform procedures and processes 
    in appropriate cases, when warranted because of the agency mission;
      (2) ensure that the head of each executive agency complies with 
    the requirements of subsection (d); and
      (3) consult with the heads of appropriate Federal agencies with 
    applicable technical and functional expertise, including the Office 
    of Information and Regulatory Affairs, the National Institute of 
    Standards and Technology, the General Services Administration, and 
    the Department of Defense.

Sec. 2302. Rights in technical data

  (a) Where Defined.--The legitimate proprietary interest of the 
Federal Government and of a contractor in technical or other data shall 
be defined in regulations prescribed as part of the Federal Acquisition 
Regulation.
  (b) General Extent of Regulations.--
      (1) Other rights not impaired.--Regulations prescribed under 
    subsection (a) may not impair a right of the Federal Government or 
    of a contractor with respect to a patent or copyright or another 
    right in technical data otherwise established by law.
      (2) Limitation on requiring data be provided to the government.--
    With respect to executive agencies subject to division C, 
    regulations prescribed under subsection (a) shall provide that the 
    Federal Government may not require a person that has developed a 
    product (or process offered or to be offered for sale to the 
    public) to provide to the Federal Government technical data 
    relating to the design (or development or manufacture of the 
    product or process) as a condition of procurement by the Federal 
    Government of the product or process. This paragraph does not apply 
    to data that may be necessary for the Federal Government to operate 
    and maintain the product or use the process if the Federal 
    Government obtains it as an element of performance under the 
    contract.
  (c) Technical Data Developed With Federal Funds.--
      (1) Use by government and agencies.--Except as otherwise 
    expressly provided by Federal statute, with respect to executive 
    agencies subject to division C, regulations prescribed under 
    subsection (a) shall provide that--
          (A) the Federal Government has unlimited rights in technical 
        data developed exclusively with Federal funds if delivery of 
        the data--
              (i) was required as an element of performance under a 
            contract; and
              (ii) is needed to ensure the competitive acquisition of 
            supplies or services that will be required in substantial 
            quantities in the future; and
          (B) the Federal Government and each agency of the Federal 
        Government has an unrestricted, royalty-free right to use, or 
        to have its contractors use, for governmental purposes 
        (excluding publication outside the Federal Government) 
        technical data developed exclusively with Federal funds.
      (2) Requirements in addition to other rights of the government.--
    The requirements of paragraph (1) are in addition to and not in 
    lieu of any other rights the Federal Government may have pursuant 
    to law.
  (d) Factors To Be Considered in Prescribing Regulations.--The 
following factors shall be considered in prescribing regulations under 
subsection (a):
      (1) Whether the item or process to which the technical data 
    pertains was developed--
          (A) exclusively with Federal funds;
          (B) exclusively at private expense; or
          (C) in part with Federal funds and in part at private 
        expense.
      (2) The statement of congressional policy and objectives in 
    section 200 of title 35, the statement of purposes in section 2(b) 
    of the Small Business Innovation Development Act of 1982 (Public 
    Law 97-219, 15 U.S.C. 638 note), and the declaration of policy in 
    section 2 of the Small Business Act (15 U.S.C. 631).
      (3) The interest of the Federal Government in increasing 
    competition and lowering costs by developing and locating 
    alternative sources of supply and manufacture.
  (e) Provisions Required in Contracts.--Regulations prescribed under 
subsection (a) shall require that a contract for property or services 
entered into by an executive agency contain appropriate provisions 
relating to technical data, including provisions--
      (1) defining the respective rights of the Federal Government and 
    the contractor or subcontractor (at any tier) regarding technical 
    data to be delivered under the contract;
      (2) specifying technical data to be delivered under the contract 
    and schedules for delivery;
      (3) establishing or referencing procedures for determining the 
    acceptability of technical data to be delivered under the contract;
      (4) establishing separate contract line items for technical data 
    to be delivered under the contract;
      (5) to the maximum practicable extent, identifying, in advance of 
    delivery, technical data which is to be delivered with restrictions 
    on the right of the Federal Government to use the data;
      (6) requiring the contractor to revise any technical data 
    delivered under the contract to reflect engineering design changes 
    made during the performance of the contract and affecting the form, 
    fit, and function of the items specified in the contract and to 
    deliver the revised technical data to an agency within a time 
    specified in the contract;
      (7) requiring the contractor to furnish written assurance, when 
    technical data is delivered or is made available, that the 
    technical data is complete and accurate and satisfies the 
    requirements of the contract concerning technical data;
      (8) establishing remedies to be available to the Federal 
    Government when technical data required to be delivered or made 
    available under the contract is found to be incomplete or 
    inadequate or to not satisfy the requirements of the contract 
    concerning technical data; and
      (9) authorizing the head of the agency to withhold payments under 
    the contract (or exercise another remedy the head of the agency 
    considers appropriate) during any period if the contractor does not 
    meet the requirements of the contract pertaining to the delivery of 
    technical data.

Sec. 2303. Ethics safeguards related to contractor conflicts of 
            interest

  (a) Definition.--In this section, the term ``relevant acquisition 
function'' means an acquisition function closely associated with 
inherently governmental functions.
  (b) Policy on Personal Conflicts of Interest by Contractor 
Employees.--
      (1) Development and issuance of policy.--The Administrator shall 
    develop and issue a standard policy to prevent personal conflicts 
    of interest by contractor employees performing relevant acquisition 
    functions (including the development, award, and administration of 
    Federal Government contracts) for or on behalf of a Federal agency 
    or department.
      (2) Elements of policy.--The policy shall--
          (A) define ``personal conflict of interest'' as it relates to 
        contractor employees performing relevant acquisition functions; 
        and
          (B) require each contractor whose employees perform relevant 
        acquisition functions to--
              (i) identify and prevent personal conflicts of interest 
            for the employees;
              (ii) prohibit contractor employees who have access to 
            non-public government information obtained while performing 
            relevant acquisition functions from using the information 
            for personal gain;
              (iii) report any personal conflict-of-interest violation 
            by an employee to the applicable contracting officer or 
            contracting officer's representative as soon as it is 
            identified;
              (iv) maintain effective oversight to verify compliance 
            with personal conflict-of-interest safeguards;
              (v) have procedures in place to screen for potential 
            conflicts of interest for all employees performing relevant 
            acquisition functions; and
              (vi) take appropriate disciplinary action in the case of 
            employees who fail to comply with policies established 
            pursuant to this section.
      (3) Contract clause.--
          (A) Contents.--The Administrator shall develop a personal 
        conflicts-of-interest clause or a set of clauses for inclusion 
        in solicitations and contracts (and task or delivery orders) 
        for the performance of relevant acquisition functions that sets 
        forth--
              (i) the personal conflicts-of-interest policy developed 
            under this subsection; and
              (ii) the contractor's responsibilities under the policy.
          (B) Effective date.--Subparagraph (A) shall take effect 300 
        days after October 14, 2008, and shall apply to--
              (i) contracts entered into on or after that effective 
            date; and
              (ii) task or delivery orders awarded on or after that 
            effective date, regardless of whether the contracts 
            pursuant to which the task or delivery orders are awarded 
            are entered before, on, or after October 14, 2008.
      (4) Applicability.--
          (A) Contracts in excess of the simplified acquisition 
        threshold.--This subsection shall apply to any contract for an 
        amount in excess of the simplified acquisition threshold (as 
        defined in section 134 of this title) if the contract is for 
        the performance of relevant acquisition functions.
          (B) Partial applicability.--If only a portion of a contract 
        described in subparagraph (A) is for the performance of 
        relevant acquisition functions, then this subsection applies 
        only to that portion of the contract.
  (c) Best Practices.--The Administrator shall, in consultation with 
the Director of the Office of Government Ethics, develop and maintain a 
repository of best practices relating to the prevention and mitigation 
of organizational and personal conflicts of interest in Federal 
contracting.

Sec. 2304. Conflict of interest standards for consultants

  (a) Content of Regulations.--The Administrator shall prescribe under 
this division Government-wide regulations that set forth--
      (1) conflict of interest standards for persons who provide 
    consulting services described in subsection (b); and
      (2) procedures, including registration, certification, and 
    enforcement requirements as may be appropriate, to promote 
    compliance with the standards.
  (b) Services Subject to Regulations.--Regulations required by 
subsection (a) apply to--
      (1) advisory and assistance services provided to the Federal 
    Government to the extent necessary to identify and evaluate the 
    potential for conflicts of interest that could be prejudicial to 
    the interests of the United States;
      (2) services related to support of the preparation or submission 
    of bids and proposals for Federal contracts to the extent that 
    inclusion of the services in the regulations is necessary to 
    identify and evaluate the potential for conflicts of interest that 
    could be prejudicial to the interests of the United States; and
      (3) other services related to Federal contracts as specified in 
    the regulations prescribed under subsection (a) to the extent 
    necessary to identify and evaluate the potential for conflicts of 
    interest that could be prejudicial to the interests of the United 
    States.
  (c) Intelligence Activities Exemption.--
      (1) Activities that may be exempt.--Intelligence activities as 
    defined in section 3.4(e) of Executive Order No. 12333 or a 
    comparable definitional section in any successor order may be 
    exempt from the regulations required by subsection (a).
      (2) Report.--The Director of National Intelligence shall report 
    to the Intelligence and Appropriations Committees of Congress each 
    January 1, delineating the activities and organizations that have 
    been exempted under paragraph (1).
  (d) Presidential Determination.--Before the regulations required by 
subsection (a) are prescribed, the President shall determine if 
prescribing the regulations will have a significantly adverse effect on 
the accomplishment of the mission of the Defense Department or another 
Federal agency. If the President determines that the regulations will 
have such an adverse effect, the President shall so report to the 
appropriate committees of the Senate and the House of Representatives, 
stating in full the reasons for the determination. If such a report is 
submitted, the requirement for the regulations shall be null and void.

Sec. 2305. Authority of Director of Office of Management and Budget not 
            affected

  This division does not limit the authorities and responsibilities of 
the Director of the Office of Management and Budget in effect on 
December 1, 1983.

Sec. 2306. Openness of meetings

  The Administrator by regulation shall require that--
      (1) formal meetings of the Office of Federal Procurement Policy, 
    as designated by the Administrator, for developing procurement 
    policies and regulations be open to the public; and
      (2) public notice of each meeting be given not less than 10 days 
    prior to the meeting.

Sec. 2307. Comptroller General's access to information

  The Administrator and personnel in the Office of Federal Procurement 
Policy shall furnish information the Comptroller General may require to 
discharge the responsibilities of the Comptroller General. For this 
purpose, the Comptroller General or representatives of the Comptroller 
General shall have access to all books, documents, papers, and records 
of the Office of Federal Procurement Policy.

Sec. 2308. Modular contracting for information technology

  (a) Use.--To the maximum extent practicable, the head of an executive 
agency should use modular contracting for an acquisition of a major 
system of information technology.
  (b) Modular Contracting Described.--Under modular contracting, an 
executive agency's need for a system is satisfied in successive 
acquisitions of interoperable increments. Each increment complies with 
common or commercially accepted standards applicable to information 
technology so that the increments are compatible with other increments 
of information technology comprising the system.
  (c) Provisions in Federal Acquisition Regulation.--The Federal 
Acquisition Regulation shall provide that--
      (1) under the modular contracting process, an acquisition of a 
    major system of information technology may be divided into several 
    smaller acquisition increments that--
          (A) are easier to manage individually than would be one 
        comprehensive acquisition;
          (B) address complex information technology objectives 
        incrementally in order to enhance the likelihood of achieving 
        workable solutions for attaining those objectives;
          (C) provide for delivery, implementation, and testing of 
        workable systems or solutions in discrete increments, each of 
        which comprises a system or solution that is not dependent on a 
        subsequent increment in order to perform its principal 
        functions; and
          (D) provide an opportunity for subsequent increments of the 
        acquisition to take advantage of any evolution in technology or 
        needs that occurs during conduct of the earlier increments;
      (2) to the maximum extent practicable, a contract for an 
    increment of an information technology acquisition should be 
    awarded within 180 days after the solicitation is issued and, if 
    the contract for that increment cannot be awarded within that 
    period, the increment should be considered for cancellation; and
      (3) the information technology provided for in a contract for 
    acquisition of information technology should be delivered within 18 
    months after the solicitation resulting in award of the contract 
    was issued.

Sec. 2309. Protection of constitutional rights of contractors

  (a) Prohibition on Requiring Waiver of Rights.--A contractor may not 
be required, as a condition for entering into a contract with the 
Federal Government, to waive a right under the Constitution for a 
purpose relating to the Chemical Weapons Convention Implementation Act 
of 1998 (22 U.S.C. 6701 et seq.) or the Chemical Weapons Convention (as 
defined in section 3 of that Act (22 U.S.C. 6701)).
  (b) Permissible Contract Clauses.--Subsection (a) does not prohibit 
an executive agency from including in a contract a clause that requires 
the contractor to permit inspections to ensure that the contractor is 
performing the contract in accordance with the provisions of the 
contract.

Sec. 2310. Performance-based contracts or task orders for services to 
            be treated as contracts for the procurement of commercial 
            items

  (a) Criteria.--A performance-based contract for the procurement of 
services entered into by an executive agency or a performance-based 
task order for services issued by an executive agency may be treated as 
a contract for the procurement of commercial items if--
      (1) the value of the contract or task order is estimated not to 
    exceed $25,000,000;
      (2) the contract or task order sets forth specifically each task 
    to be performed and, for each task--
          (A) defines the task in measurable, mission-related terms;
          (B) identifies the specific end products or output to be 
        achieved; and
          (C) contains firm, fixed prices for specific tasks to be 
        performed or outcomes to be achieved; and
      (3) the source of the services provides similar services to the 
    general public under terms and conditions similar to those offered 
    to the Federal Government.
  (b) Regulations.--Regulations implementing this section shall require 
agencies to collect and maintain reliable data sufficient to identify 
the contracts or task orders treated as contracts for commercial items 
using the authority of this section. The data may be collected using 
the Federal Procurement Data System or other reporting mechanism.
  (c) Report.--Not later than 2 years after November 24, 2003, the 
Director of the Office of Management and Budget shall prepare and 
submit to the Committees on Homeland Security and Governmental Affairs 
and on Armed Services of the Senate and the Committees on Oversight and 
Government Reform and on Armed Services of the House of Representatives 
a report on the contracts or task orders treated as contracts for 
commercial items using the authority of this section. The report shall 
include data on the use of the authority, both government-wide and for 
each department and agency.
  (d) Expiration.--The authority under this section expires 10 years 
after November 24, 2003.

Sec. 2311. Enhanced transparency on interagency contracting and other 
            transactions

  The Director of the Office of Management and Budget shall direct 
appropriate revisions to the Federal Procurement Data System or any 
successor system to facilitate the collection of complete, timely, and 
reliable data on interagency contracting actions and on transactions 
other than contracts, grants, and cooperative agreements issued 
pursuant to section 2371 of title 10 or similar authorities. The 
Director of the Office of Management and Budget shall ensure that data, 
consistent with what is collected for contract actions, is obtained 
on--
      (1) interagency contracting actions, including data at the task 
    or delivery-order level; and
      (2) other transactions, including the initial award and any 
    subsequent modifications awarded or orders issued (other than 
    transactions that are reported through the Federal Assistance 
    Awards Data System).

Sec. 2312. Contingency Contracting Corps

  (a) Definition.--In this section, the term ``Corps'' means the 
Contingency Contracting Corps established in subsection (b).
  (b) Establishment.--The Administrator of General Services, pursuant 
to policies established by the Office of Management and Budget, and in 
consultation with the Secretary of Defense and the Secretary of 
Homeland Security, shall establish a Government-wide Contingency 
Contracting Corps.
  (c) Function.--The members of the Corps shall be available for 
deployment in responding to an emergency or major disaster, or a 
contingency operation, both within or outside the continental United 
States.
  (d) Applicability.--The authorities provided in this section apply 
with respect to any procurement of property or services by or for an 
executive agency that, as determined by the head of the executive 
agency, are to be used--
      (1) in support of a contingency operation as defined in section 
    101(a)(13) of title 10; or
      (2) to respond to an emergency or major disaster as defined in 
    section 102 of the Robert T. Stafford Disaster Relief and Emergency 
    Assistance Act (42 U.S.C. 5122).
  (e) Membership.--Membership in the Corps shall be voluntary and open 
to all Federal employees and members of the Armed Forces who are 
members of the Federal acquisition workforce.
  (f) Education and Training.--The Administrator of General Services 
may, in consultation with the Director of the Federal Acquisition 
Institute and the Chief Acquisition Officers Council, establish 
educational and training requirements for members of the Corps. 
Education and training carried out pursuant to the requirements shall 
be paid for from funds available in the acquisition workforce training 
fund established pursuant to section 1703(i) of this title.
  (g) Salary.--The salary for a member of the Corps shall be paid--
      (1) in the case of a member of the Armed Forces, out of funds 
    available to the Armed Force concerned; and
      (2) in the case of a Federal employee, out of funds available to 
    the employing agency.
  (h) Authority to Deploy the Corps.--
      (1) Director of the Office of Management and Budget.--The 
    Director of the Office of Management and Budget shall have the 
    authority, upon request by an executive agency, to determine when 
    members of the Corps shall be deployed, with the concurrence of the 
    head of the agency or agencies employing the members to be 
    deployed.
      (2) Secretary of Defense.--Nothing in this section shall preclude 
    the Secretary of Defense or the Secretary's designee from deploying 
    members of the Armed Forces or civilian personnel of the Department 
    of Defense in support of a contingency operation as defined in 
    section 101(a)(13) of title 10.
  (i) Annual Report.--
      (1) In general.--The Administrator of General Services shall 
    provide to the Committee on Homeland Security and Governmental 
    Affairs and the Committee on Armed Services of the Senate and the 
    Committee on Oversight and Government Reform and the Committee on 
    Armed Services of the House of Representatives an annual report on 
    the status of the Corps as of September 30 of each fiscal year.
      (2) Content.--Each report under paragraph (1) shall include the 
    number of members of the Corps, the total cost of operating the 
    program, the number of deployments of members of the program, and 
    the performance of members of the program in deployment.

Sec. 2313. Database for Federal agency contract and grant officers and 
            suspension and debarment officials

  (a) In General.--Subject to the authority, direction, and control of 
the Director of the Office of Management and Budget, the Administrator 
of General Services shall establish and maintain a database of 
information regarding the integrity and performance of certain persons 
awarded Federal agency contracts and grants for use by Federal agency 
officials having authority over contracts and grants.
  (b) Persons Covered.--The database shall cover the following:
      (1) Any person awarded a Federal agency contract or grant in 
    excess of $500,000, if any information described in subsection (c) 
    exists with respect to the person.
      (2) Any person awarded such other category or categories of 
    Federal agency contract as the Federal Acquisition Regulation may 
    provide, if any information described in subsection (c) exists with 
    respect to the person.
  (c) Information Included.--With respect to a covered person, the 
database shall include information (in the form of a brief description) 
for the most recent 5-year period regarding the following:
      (1) Each civil or criminal proceeding, or any administrative 
    proceeding, in connection with the award or performance of a 
    contract or grant with the Federal Government with respect to the 
    person during the period to the extent that the proceeding results 
    in the following dispositions:
          (A) In a criminal proceeding, a conviction.
          (B) In a civil proceeding, a finding of fault and liability 
        that results in the payment of a monetary fine, penalty, 
        reimbursement, restitution, or damages of $5,000 or more.
          (C) In an administrative proceeding, a finding of fault and 
        liability that results in--
              (i) the payment of a monetary fine or penalty of $5,000 
            or more; or
              (ii) the payment of a reimbursement, restitution, or 
            damages in excess of $100,000.
          (D) To the maximum extent practicable and consistent with 
        applicable laws and regulations, in a criminal, civil, or 
        administrative proceeding, a disposition of the matter by 
        consent or compromise with an acknowledgment of fault by the 
        person if the proceeding could have led to any of the outcomes 
        specified in subparagraph (A), (B), or (C).
      (2) Each Federal contract and grant awarded to the person that 
    was terminated in the period due to default.
      (3) Each Federal suspension and debarment of the person.
      (4) Each Federal administrative agreement entered into by the 
    person and the Federal Government in the period to resolve a 
    suspension or debarment proceeding.
      (5) Each final finding by a Federal official in the period that 
    the person has been determined not to be a responsible source under 
    paragraph (3) or (4) of section 113 of this title.
      (6) Other information that shall be provided for purposes of this 
    section in the Federal Acquisition Regulation.
      (7) To the maximum extent practicable, information similar to the 
    information covered by paragraphs (1) to (4) in connection with the 
    award or performance of a contract or grant with a State 
    government.
  (d) Requirements Relating to Database Information.--
      (1) Direct input and update.--The Administrator of General 
    Services shall design and maintain the database in a manner that 
    allows the appropriate Federal agency officials to directly input 
    and update information in the database relating to actions that the 
    officials have taken with regard to contractors or grant 
    recipients.
      (2) Timeliness and accuracy.--The Administrator of General 
    Services shall develop policies to require--
          (A) the timely and accurate input of information into the 
        database;
          (B) the timely notification of any covered person when 
        information relevant to the person is entered into the 
        database; and
          (C) opportunities for any covered person to submit comments 
        pertaining to information about the person for inclusion in the 
        database.
  (e) Use of Database.--
      (1) Availability to government officials.--The Administrator of 
    General Services shall ensure that the information in the database 
    is available to appropriate acquisition officials of Federal 
    agencies, other government officials as the Administrator of 
    General Services determines appropriate, and, on request, the 
    Chairman and Ranking Member of the committees of Congress having 
    jurisdiction.
      (2) Review and assessment of data.--
          (A) In general.--Before awarding a contract or grant in 
        excess of the simplified acquisition threshold under section 
        134 of this title, the Federal agency official responsible for 
        awarding the contract or grant shall review the database and 
        consider all information in the database with regard to any 
        offer or proposal, and in the case of a contract, shall 
        consider other past performance information available with 
        respect to the offeror in making any responsibility 
        determination or past performance evaluation for the offeror.
          (B) Documentation in contract file.--The contract file for 
        each contract of a Federal agency in excess of the simplified 
        acquisition threshold shall document the manner in which the 
        material in the database was considered in any responsibility 
        determination or past performance evaluation.
  (f) Disclosure in Applications.--The Federal Acquisition Regulation 
shall require that persons with Federal agency contracts and grants 
valued in total greater than $10,000,000 shall--
      (1) submit to the Administrator of General Services, in a manner 
    determined appropriate by the Administrator of General Services, 
    the information subject to inclusion in the database as listed in 
    subsection (c) current as of the date of submittal of the 
    information under this subsection; and
      (2) update the information submitted under paragraph (1) on a 
    semiannual basis.
  (g) Rulemaking.--The Administrator of General Services shall 
prescribe regulations that may be necessary to carry out this section.

                        Division C--Procurement

                          CHAPTER 31--GENERAL

Sec.
3101.  Applicability.
3102.  Delegation and assignment of powers, functions, and 
          responsibilities.
3103.  Acquisition programs.
3104.  Small business concerns.
3105.  New contracts and grants and merit-based selection procedures.
3106.  Erection, repair, or furnishing of public buildings and 
          improvements not authorized, and certain contracts not 
          permitted, by this division.

Sec. 3101. Applicability

  (a) In General.--An executive agency shall make purchases and 
contracts for property and services in accordance with this division 
and implementing regulations of the Administrator of General Services.
  (b) Simplified Acquisition Threshold and Procedures.--
      (1) Simplified acquisition threshold.--
          (A) Definition.--For purposes of an acquisition by an 
        executive agency, the simplified acquisition threshold is as 
        specified in section 134 of this title.
          (B) Inapplicable laws.--A law properly listed in the Federal 
        Acquisition Regulation pursuant to section 1905 of this title 
        does not apply to or with respect to a contract or subcontract 
        that is not greater than the simplified acquisition threshold.
      (2) Simplified acquisition procedures.--Simplified acquisition 
    procedures contained in the Federal Acquisition Regulation pursuant 
    to section 1901 of this title apply in executive agencies as 
    provided in section 1901.
  (c) Exceptions.--
      (1) In general.--This division does not apply--
          (A) to the Department of Defense, the Coast Guard, and the 
        National Aeronautics and Space Administration; or
          (B) except as provided in paragraph (2), when this division 
        is made inapplicable pursuant to law.
      (2) Applicability of certain laws related to advertising, opening 
    of bids, and length of contract.--Sections 6101, 6103, and 6304 of 
    this title do not apply to the procurement of property or services 
    made by an executive agency pursuant to this division. However, 
    when this division is made inapplicable by any law, sections 6101 
    and 6103 of this title apply in the absence of authority conferred 
    by statute to procure without advertising or without regard to 
    section 6101 of this title. A law that authorizes an executive 
    agency (other than an executive agency exempted from this division 
    by this subsection) to procure property or services without 
    advertising or without regard to section 6101 of this title is 
    deemed to authorize the procurement pursuant to the provisions of 
    this division relating to procedures other than sealed-bid 
    procedures.

Sec. 3102. Delegation and assignment of powers, functions, and 
            responsibilities

  (a) In General.--Except to the extent expressly prohibited by another 
law, the head of an executive agency may delegate to another officer or 
official of that agency any power under this division.
  (b) Procurements For or With Another Agency.--Subject to subsection 
(a), to facilitate the procurement of property and services covered by 
this division by an executive agency for another executive agency, and 
to facilitate joint procurement by executive agencies--
      (1) the head of an executive agency may delegate functions and 
    assign responsibilities relating to procurement to any officer or 
    employee within the agency;
      (2) the heads of 2 or more executive agencies, consistent with 
    section 1535 of title 31 and regulations prescribed under section 
    1074 of the Federal Acquisition Streamlining Act of 1994 (Public 
    Law 103-355, 31 U.S.C. 1535 note), may by agreement delegate 
    procurement functions and assign procurement responsibilities from 
    one executive agency to another of those executive agencies or to 
    an officer or civilian employee of another of those executive 
    agencies; and
      (3) the heads of 2 or more executive agencies may establish joint 
    or combined offices to exercise procurement functions and 
    responsibilities.

Sec. 3103. Acquisition programs

  (a) Congressional Policy.--It is the policy of Congress that the head 
of each executive agency should achieve, on average, 90 percent of the 
cost, performance, and schedule goals established for major acquisition 
programs of the agency.
  (b) Establishment of Goals.--
      (1) By head of executive agency.--The head of each executive 
    agency shall approve or define the cost, performance, and schedule 
    goals for major acquisition programs of the agency.
      (2) By chief financial officer.--The chief financial officer of 
    an executive agency shall evaluate the cost goals proposed for each 
    major acquisition program of the agency.
  (c) Identification of Noncompliant Programs.--When it is necessary to 
implement the policy set out in subsection (a), the head of an 
executive agency shall--
      (1) determine whether there is a continuing need for programs 
    that are significantly behind schedule, over budget, or not in 
    compliance with performance or capability requirements; and
      (2) identify suitable actions to be taken, including termination, 
    with respect to those programs.

Sec. 3104. Small business concerns

  It is the policy of Congress that a fair proportion of the total 
purchases and contracts for property and services for the Federal 
Government shall be placed with small business concerns.

Sec. 3105. New contracts and grants and merit-based selection 
            procedures

  (a) Congressional Policy.--It is the policy of Congress that--
      (1) an executive agency should not be required by legislation to 
    award--
          (A) a new contract to a specific non-Federal Government 
        entity; or
          (B) a new grant for research, development, test, or 
        evaluation to a non-Federal Government entity; and
      (2) a program, project, or technology identified in legislation 
    be procured or awarded through merit-based selection procedures.
  (b) New Contract and New Grant Described.--For purposes of this 
section--
      (1) a contract is a new contract unless the work provided for in 
    the contract is a continuation of the work performed by the 
    specified entity under a prior contract; and
      (2) a grant is a new grant unless the work provided for in the 
    grant is a continuation of the work performed by the specified 
    entity under a prior grant.
  (c) Requirements for Awarding New Contract or New Grant.--A provision 
of law may not be construed as requiring a new contract or a new grant 
to be awarded to a specified non-Federal Government entity unless the 
provision of law specifically--
      (1) refers to this section;
      (2) identifies the particular non-Federal Government entity 
    involved; and
      (3) states that the award to that entity is required by the 
    provision of law in contravention of the policy set forth in 
    subsection (a).
  (d) Exception.--This section does not apply to a contract or grant 
that calls on the National Academy of Sciences to investigate, examine, 
or experiment on a subject of science or art of significance to an 
executive agency and to report on those matters to Congress or an 
agency of the Federal Government.

Sec. 3106. Erection, repair, or furnishing of public buildings and 
            improvements not authorized, and certain contracts not 
            permitted, by this division

  This division does not--
      (1) authorize the erection, repair, or furnishing of a public 
    building or public improvement; or
      (2) permit a contract for the construction or repair of a 
    building, road, sidewalk, sewer, main, or similar item using 
    procedures other than sealed-bid procedures under section 
    3301(b)(1)(A) of this title if the conditions set forth in section 
    3301(b)(1)(A) of this title apply or the contract is to be 
    performed outside the United States.

                 CHAPTER 33--PLANNING AND SOLICITATION

Sec.
3301.  Full and open competition.
3302.  Requirements for purchase of property and services pursuant to 
          multiple award contracts.
3303.  Exclusion of particular source or restriction of solicitation to 
          small business concerns.
3304.  Use of noncompetitive procedures.
3305.  Simplified procedures for small purchases.
3306.  Planning and solicitation requirements.
3307.  Preference for commercial items.
3308.  Planning for future competition in contracts for major systems.
3309.  Design-build selection procedures.
3310.  Quantities to order.
3311.  Qualification requirement.

Sec. 3301. Full and open competition

  (a) In General.--Except as provided in sections 3303, 3304(a), and 
3305 of this title and except in the case of procurement procedures 
otherwise expressly authorized by statute, an executive agency in 
conducting a procurement for property or services shall--
      (1) obtain full and open competition through the use of 
    competitive procedures in accordance with the requirements of this 
    division and the Federal Acquisition Regulation; and
      (2) use the competitive procedure or combination of competitive 
    procedures that is best suited under the circumstances of the 
    procurement.
  (b) Appropriate Competitive Procedures.--
      (1) Use of sealed bids.--In determining the competitive 
    procedures appropriate under the circumstance, an executive agency 
    shall--
          (A) 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; or
          (B) request competitive proposals if sealed bids are not 
        appropriate under subparagraph (A).
      (2) Sealed bid not required.--Paragraph (1)(A) does not require 
    the use of sealed-bid procedures in cases in which section 204(e) 
    of title 23 applies.
  (c) Efficient Fulfillment of Government Requirements.--The Federal 
Acquisition Regulation shall ensure that the requirement to obtain full 
and open competition is implemented in a manner that is consistent with 
the need to efficiently fulfill the Federal Government's requirements.

Sec. 3302. Requirements for purchase of property and services pursuant 
            to multiple award contracts

  (a) Definitions.--In this section:
      (1) Executive agency.-- The term ``executive agency'' has the 
    same meaning given in section 133 of this title.
      (2) Individual purchase.--The term ``individual purchase'' means 
    a task order, delivery order, or other purchase.
      (3) Multiple award contract.--The term ``multiple award 
    contract'' means--
          (A) a contract that is entered into by the Administrator of 
        General Services under the multiple award schedule program 
        referred to in section 2302(2)(C) of title 10;
          (B) a multiple award task order contract that is entered into 
        under the authority of sections 2304a to 2304d of title 10, or 
        chapter 41 of this title; and
          (C) any other indefinite delivery, indefinite quantity 
        contract that is entered into by the head of an executive 
        agency with 2 or more sources pursuant to the same 
        solicitation.
      (4) Sole source task or delivery order.--The term ``sole source 
    task or delivery order'' means any order that does not follow the 
    competitive procedures in paragraph (2) or (3) of subsection (c).
  (b) Regulations Required.--The Federal Acquisition Regulation shall 
require enhanced competition in the purchase of property and services 
by all executive agencies pursuant to multiple award contracts.
  (c) Content of Regulations.--
      (1) In general.--The regulations required by subsection (b) shall 
    provide that each individual purchase of property or services in 
    excess of the simplified acquisition threshold that is made under a 
    multiple award contract shall be made on a competitive basis unless 
    a contracting officer--
          (A) waives the requirement on the basis of a determination 
        that--
              (i) one of the circumstances described in paragraphs (1) 
            to (4) of section 4106(c) of this title or section 2304c(b) 
            of title 10 applies to the individual purchase; or
              (ii) a law expressly authorizes or requires that the 
            purchase be made from a specified source; and
          (B) justifies the determination in writing.
      (2) Competitive basis procedures.--For purposes of this 
    subsection, an individual purchase of property or services is made 
    on a competitive basis only if it is made pursuant to procedures 
    that--
          (A) require fair notice of the intent to make that purchase 
        (including a description of the work to be performed and the 
        basis on which the selection will be made) to be provided to 
        all contractors offering the property or services under the 
        multiple award contract; and
          (B) afford all contractors responding to the notice a fair 
        opportunity to make an offer and have that offer fairly 
        considered by the official making the purchase.
      (3) Exception to notice requirement.--
          (A) In general.--Notwithstanding paragraph (2), and subject 
        to subparagraph (B), notice may be provided to fewer than all 
        contractors offering the property or services under a multiple 
        award contract as described in subsection (a)(3)(A) if notice 
        is provided to as many contractors as practicable.
          (B) Limitation on exception.--A purchase may not be made 
        pursuant to a notice that is provided to fewer than all 
        contractors under subparagraph (A) unless--
              (i) offers were received from at least 3 qualified 
            contractors; or
              (ii) a contracting officer of the executive agency 
            determines in writing that no additional qualified 
            contractors were able to be identified despite reasonable 
            efforts to do so.
  (d) Public Notice Requirements Related to Sole Source Task or 
Delivery Orders.--
      (1) Public notice required.--The Federal Acquisition Regulation 
    shall require the head of each executive agency to--
          (A) publish on FedBizOpps notice of all sole source task or 
        delivery orders in excess of the simplified acquisition 
        threshold that are placed against multiple award contracts not 
        later than 14 days after the orders are placed, except in the 
        event of extraordinary circumstances or classified orders; and
          (B) disclose the determination required by subsection (c)(1) 
        related to sole source task or delivery orders in excess of the 
        simplified acquisition threshold placed against multiple award 
        contracts through the same mechanism and to the same extent as 
        the disclosure of documents containing a justification and 
        approval required by section 2304(f)(1) of title 10 and section 
        3304(e)(1) of this title, except in the event of extraordinary 
        circumstances or classified orders.
      (2) Exemption.--This subsection does not require the public 
    availability of information that is exempt from public disclosure 
    under section 552(b) of title 5.
  (e) Applicability.--The regulations required by subsection (b) shall 
apply to all individual purchases of property or services that are made 
under multiple award contracts on or after the effective date of the 
regulations, without regard to whether the multiple award contracts 
were entered into before, on, or after the effective date.

Sec. 3303. Exclusion of particular source or restriction of 
            solicitation to small business concerns

  (a) Exclusion of Particular Source.--
      (1) Criteria for exclusion.--An executive agency may provide for 
    the procurement of property or services covered by section 3301 of 
    this title using competitive procedures but excluding a particular 
    source to establish or maintain an alternative source of supply for 
    that property or service if the agency head determines that to do 
    so would--
          (A) increase or maintain competition and likely result in 
        reduced overall cost for the procurement, or for an anticipated 
        procurement, of the property or services;
          (B) be in the interest of national defense in having a 
        facility (or a producer, manufacturer, or other supplier) 
        available for furnishing the property or service in case of a 
        national emergency or industrial mobilization;
          (C) be in the interest of national defense in establishing or 
        maintaining 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;
          (D) ensure the continuous availability of a reliable source 
        of supply of the property or service;
          (E) satisfy projected needs for the property or service 
        determined on the basis of a history of high demand for the 
        property or service; or
          (F) satisfy a critical need for medical, safety, or emergency 
        supplies.
      (2) Determination for class disallowed.--A determination under 
    paragraph (1) may not be made for a class of purchases or 
    contracts.
  (b) Exclusion of Other Than Small Business Concerns.--An executive 
agency may provide for the procurement of property or services covered 
by section 3301 of this title using competitive procedures, but 
excluding other than small business concerns in furtherance of sections 
9 and 15 of the Small Business Act (15 U.S.C. 638, 644).
  (c) Nonapplication of Justification and Approval Requirements.--A 
contract awarded pursuant to the competitive procedures referred to in 
subsections (a) and (b) is not subject to the justification and 
approval required by section 3304(e)(1) of this title.

Sec. 3304. Use of noncompetitive procedures

  (a) When Noncompetitive Procedures May Be Used.--An executive agency 
may use procedures other than competitive procedures only when--
      (1) 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;
      (2) the executive agency's need for the property or services is 
    of such an unusual and compelling urgency that the Federal 
    Government would be seriously injured unless the executive agency 
    is permitted to limit the number of sources from which it solicits 
    bids or proposals;
      (3) it is necessary to award the contract to a particular 
    source--
          (A) 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;
          (B) 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;
          (C) to procure the services of an expert for use, in any 
        litigation or dispute (including any reasonably foreseeable 
        litigation or dispute) involving the Federal Government, in any 
        trial, hearing, or proceeding before a court, administrative 
        tribunal, or agency, whether or not the expert is expected to 
        testify; or
          (D) to procure the services of an expert or neutral for use 
        in any part of an alternative dispute resolution or negotiated 
        rulemaking process, whether or not the expert is expected to 
        testify;
      (4) the terms of an international agreement or treaty between the 
    Federal Government and a foreign government or an 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 that government, have the effect of 
    requiring the use of procedures other than competitive procedures;
      (5) subject to section 3105 of this title, 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;
      (6) the disclosure of the executive agency's needs would 
    compromise the national security unless the agency is permitted to 
    limit the number of sources from which it solicits bids or 
    proposals; or
      (7) the head of the executive agency (who may not delegate the 
    authority under this paragraph)--
          (A) determines that it is necessary in the public interest to 
        use procedures other than competitive procedures in the 
        particular procurement concerned; and
          (B) notifies Congress in writing of that determination not 
        less than 30 days before the award of the contract.
  (b) Property or Services Deemed Available From Only One Source.--For 
the purposes of subsection (a)(1), in the case of--
      (1) a contract for property or services to be awarded on the 
    basis of acceptance of an unsolicited research proposal, the 
    property or services are deemed to be available from only one 
    source if the source has submitted an unsolicited research proposal 
    that demonstrates a unique and innovative concept, the substance of 
    which is not otherwise available to the Federal Government and does 
    not resemble the substance of a pending competitive procurement; or
      (2) a follow-on contract for the continued development or 
    production of a major system or highly specialized equipment, the 
    property may be deemed to be available only from the original 
    source and may be procured through procedures other than 
    competitive procedures when it is likely that award to a source 
    other than the original source would result in--
          (A) substantial duplication of cost to the Federal Government 
        that is not expected to be recovered through competition; or
          (B) unacceptable delay in fulfilling the executive agency's 
        needs.
  (c) Property or Services Needed With Unusual and Compelling 
Urgency.--
      (1) Allowable contract period.--The contract period of a contract 
    described in paragraph (2) that is entered into by an executive 
    agency pursuant to the authority provided under subsection (a)(2)--
          (A) may not exceed the time necessary--
              (i) to meet the unusual and compelling requirements of 
            the work to be performed under the contract; and
              (ii) for the executive agency to enter into another 
            contract for the required goods or services through the use 
            of competitive procedures; and
          (B) may not exceed one year unless the head of the executive 
        agency entering into the contract determines that exceptional 
        circumstances apply.
      (2) Applicability of allowable contract period.--This subsection 
    applies to any contract in an amount greater than the simplified 
    acquisition threshold.
  (d) Offer Requests to Potential Sources.--An executive agency using 
procedures other than competitive procedures to procure property or 
services by reason of the application of paragraph (2) or (6) of 
subsection (a) shall request offers from as many potential sources as 
is practicable under the circumstances.
  (e) Justification for Use of Noncompetitive Procedures.--
      (1) Prerequisites for awarding contract.--Except as provided in 
    paragraphs (3) and (4), an executive agency may not award a 
    contract using procedures other than competitive procedures 
    unless--
          (A) the contracting officer for the contract justifies the 
        use of those procedures in writing and certifies the accuracy 
        and completeness of the justification;
          (B) the justification is approved, in the case of a contract 
        for an amount--
              (i) exceeding $500,000 but equal to or less than 
            $10,000,000, by the advocate for competition for the 
            procuring activity (without further delegation) or by an 
            official referred to in clause (ii) or (iii);
              (ii) exceeding $10,000,000 but equal to or less than 
            $50,000,000, by the head of the procuring activity or by a 
            delegate who, if a member of the armed forces, is a general 
            or flag officer or, if a civilian, is serving in a position 
            in which the individual is entitled to receive the daily 
            equivalent of the maximum annual rate of basic pay payable 
            for level IV of the Executive Schedule (or in a comparable 
            or higher position under another schedule); or
              (iii) exceeding $50,000,000, by the senior procurement 
            executive of the agency designated pursuant to section 
            1702(c) of this title (without further delegation); and
          (C) any required notice has been published with respect to 
        the contract pursuant to section 1708 of this title and the 
        executive agency has considered all bids or proposals received 
        in response to that notice.
      (2) Elements of justification.--The justification required by 
    paragraph (1)(A) shall include--
          (A) a description of the agency's needs;
          (B) an identification of the statutory exception from the 
        requirement to use competitive procedures and a demonstration, 
        based on the proposed contractor's qualifications or the nature 
        of the procurement, of the reasons for using that exception;
          (C) a determination that the anticipated cost will be fair 
        and reasonable;
          (D) a description of the market survey conducted or a 
        statement of the reasons a market survey was not conducted;
          (E) a listing of any sources that expressed in writing an 
        interest in the procurement; and
          (F) a statement of any actions the agency may take to remove 
        or overcome a barrier to competition before a subsequent 
        procurement for those needs.
      (3) Justification allowed after contract awarded.--In the case of 
    a procurement permitted by subsection (a)(2), the justification and 
    approval required by paragraph (1) may be made after the contract 
    is awarded.
      (4) Justification not required.--The justification and approval 
    required by paragraph (1) are not required if--
          (A) a statute expressly requires that the procurement be made 
        from a specified source;
          (B) the agency's need is for a brand-name commercial item for 
        authorized resale;
          (C) the procurement is permitted by subsection (a)(7); or
          (D) the procurement is conducted under chapter 85 of this 
        title or section 8(a) of the Small Business Act (15 U.S.C. 
        637(a)).
      (5) Restrictions on executive agencies.--
          (A) Contracts and procurement of property or services.--In no 
        case may an executive agency--
              (i) enter into a contract for property or services using 
            procedures other than competitive procedures on the basis 
            of the lack of advance planning or concerns related to the 
            amount available to the agency for procurement functions; 
            or
              (ii) procure property or services from another executive 
            agency unless the other executive agency complies fully 
            with the requirements of this division in its procurement 
            of the property or services.
          (B) Additional restriction.--The restriction set out in 
        subparagraph (A)(ii) is in addition to any other restriction 
        provided by law.
  (f) Public Availability of Justification and Approval Required for 
Using Noncompetitive Procedures.--
      (1) Time requirement.--
          (A) Within 14 days after contract award.--Except as provided 
        in subparagraph (B), in the case of a procurement permitted by 
        subsection (a), the head of an executive agency shall make 
        publicly available, within 14 days after the award of the 
        contract, the documents containing the justification and 
        approval required by subsection (e)(1) with respect to the 
        procurement.
          (B) Within 30 days after contract award.--In the case of a 
        procurement permitted by subsection (a)(2), subparagraph (A) 
        shall be applied by substituting ``30 days'' for ``14 days''.
      (2) Availability on websites.--The documents referred to in 
    subparagraph (A) of paragraph (1) shall be made available on the 
    website of the agency and through a Government-wide website 
    selected by the Administrator.
      (3) Exception to availability and approval requirement.--This 
    subsection does not require the public availability of information 
    that is exempt from public disclosure under section 552(b) of title 
    5.

Sec. 3305. Simplified procedures for small purchases

  (a) Authorization.--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--
      (1) not greater than the simplified acquisition threshold; and
      (2) greater than the simplified acquisition threshold but not 
    greater than $5,000,000 for which the contracting officer 
    reasonably expects, based on the nature of the property or services 
    sought and on market research, that offers will include only 
    commercial items.
  (b) Leasehold Interests in Real Property.--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. The rental rate under a multiyear lease does 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.
  (c) Prohibition on Dividing Contracts.--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 
to use the simplified procedures required by subsection (a).
  (d) Promotion of Competition.--In using the simplified procedures, an 
executive agency shall promote competition to the maximum extent 
practicable.
  (e) Compliance With Special Requirements of Federal Acquisition 
Regulation.--An executive agency shall comply with the Federal 
Acquisition Regulation provisions referred to in section 1901(e) of 
this title.

Sec. 3306. Planning and solicitation requirements

  (a) Planning and Specifications.--
      (1) Preparing for procurement.--In preparing for the procurement 
    of property or services, an executive agency shall--
          (A) specify its needs and solicit bids or proposals in a 
        manner designed to achieve full and open competition for the 
        procurement;
          (B) use advance procurement planning and market research; and
          (C) develop specifications in the manner necessary to obtain 
        full and open competition with due regard to the nature of the 
        property or services to be acquired.
      (2) Requirements of specifications.--Each solicitation under this 
    division shall include specifications that--
          (A) consistent with this division, permit full and open 
        competition; and
          (B) include restrictive provisions or conditions only to the 
        extent necessary to satisfy the needs of the executive agency 
        or as authorized by law.
      (3) Types of specifications.--For the purposes of paragraphs (1) 
    and (2), the type of specification included in a solicitation shall 
    depend on the nature of the needs of the executive agency and the 
    market available to satisfy those needs. Subject to those needs, 
    specifications may be stated in terms of--
          (A) function, so that a variety of products or services may 
        qualify;
          (B) performance, including specifications of the range of 
        acceptable characteristics or of the minimum acceptable 
        standards; or
          (C) design requirements.
  (b) Contents of Solicitation.--In addition to the specifications 
described in subsection (a), each solicitation for sealed bids or 
competitive proposals (other than for a procurement for commercial 
items using special simplified procedures or a purchase for an amount 
not greater than the simplified acquisition threshold) shall at a 
minimum include--
      (1) a statement of--
          (A) all significant factors and significant subfactors that 
        the executive agency reasonably expects to consider in 
        evaluating sealed bids (including price) or competitive 
        proposals (including cost or price, cost-related or price-
        related factors and subfactors, and noncost-related or 
        nonprice-related factors and subfactors); and
          (B) the relative importance assigned to each of those factors 
        and subfactors; and
      (2)(A) in the case of sealed bids--
          (i) a statement that sealed bids will be evaluated without 
        discussions with the bidders; and
          (ii) the time and place for the opening of the sealed bids; 
        or
      (B) in the case of competitive proposals--
          (i) either a statement that the proposals are intended to be 
        evaluated with, and the award made after, discussions with the 
        offerors, or a statement that the proposals are intended to be 
        evaluated, and the award made, without discussions with the 
        offerors (other than discussions conducted for the purpose of 
        minor clarification) unless discussions are determined to be 
        necessary; and
          (ii) the time and place for submission of proposals.
  (c) Evaluation Factors.--
      (1) In general.--In prescribing the evaluation factors to be 
    included in each solicitation for competitive proposals, an 
    executive agency shall--
          (A) establish clearly the relative importance assigned to the 
        evaluation factors and subfactors, including the quality of the 
        product or services to be provided (including technical 
        capability, management capability, prior experience, and past 
        performance of the offeror);
          (B) include cost or price to the Federal Government as an 
        evaluation factor that must be considered in the evaluation of 
        proposals; and
          (C) disclose to offerors whether all evaluation factors other 
        than cost or price, when combined, are--
              (i) significantly more important than cost or price;
              (ii) approximately equal in importance to cost or price; 
            or
              (iii) significantly less important than cost or price.
      (2) Restriction on implementing regulations.--Regulations 
    implementing paragraph (1)(C) may not define the terms 
    ``significantly more important'' and ``significantly less 
    important'' as specific numeric weights that would be applied 
    uniformly to all solicitations or a class of solicitations.
  (d) Additional Information in Solicitation.--This section does not 
prohibit an executive agency from--
      (1) providing additional information in a solicitation, including 
    numeric weights for all evaluation factors and subfactors on a 
    case-by-case basis; or
      (2) stating in a solicitation that award will be made to the 
    offeror that meets the solicitation's mandatory requirements at the 
    lowest cost or price.
  (e) Limitation on Evaluation of Purchase Options.--An executive 
agency, in issuing a solicitation for a contract to be awarded using 
sealed bid procedures, may not include in the solicitation a clause 
providing for the evaluation of prices for options to purchase 
additional property or services under the contract unless the executive 
agency has determined that there is a reasonable likelihood that the 
options will be exercised.
  (f) Authorization of Telecommuting for Federal Contractors.--
      (1) Definition.--In this subsection, the term ``executive 
    agency'' has the meaning given that term in section 133 of this 
    title.
      (2) Federal acquisition regulation to allow telecommuting.--The 
    Federal Acquisition Regulation issued in accordance with sections 
    1121(b) and 1303(a)(1) of this title shall permit telecommuting by 
    employees of Federal Government contractors in the performance of 
    contracts entered into with executive agencies.
      (3) Scope of allowance.--The Federal Acquisition Regulation at a 
    minimum shall provide that a solicitation for the acquisition of 
    property or services may not set forth any requirement or 
    evaluation criteria that would--
          (A) render an offeror ineligible to enter into a contract on 
        the basis of the inclusion of a plan of the offeror to allow 
        the offeror's employees to telecommute, unless the contracting 
        officer concerned first determines that the requirements of the 
        agency, including security requirements, cannot be met if 
        telecommuting is allowed and documents in writing the basis for 
        the determination; or
          (B) reduce the scoring of an offer on the basis of the 
        inclusion in the offer of a plan of the offeror to allow the 
        offeror's employees to telecommute, unless the contracting 
        officer concerned first determines that the requirements of the 
        agency, including security requirements, would be adversely 
        impacted if telecommuting is allowed and documents in writing 
        the basis for the determination.

Sec. 3307. Preference for commercial items

  (a) Relationship of Provisions of Law to Procurement of Commercial 
Items.--
      (1) This division.--Unless otherwise specifically provided, all 
    other provisions in this division also apply to the procurement of 
    commercial items.
      (2) Laws listed in federal acquisition regulation.--A contract 
    for the procurement of a commercial item entered into by the head 
    of an executive agency is not subject to a law properly listed in 
    the Federal Acquisition Regulation pursuant to section 1906 of this 
    title.
  (b) Preference.--The head of each executive agency shall ensure that, 
to the maximum extent practicable--
      (1) requirements of the executive agency with respect to a 
    procurement of supplies or services are stated in terms of--
          (A) functions to be performed;
          (B) performance required; or
          (C) essential physical characteristics;
      (2) those requirements are defined so that commercial items or, 
    to the extent that commercial items suitable to meet the executive 
    agency's needs are not available, nondevelopmental items other than 
    commercial items may be procured to fulfill those requirements; and
      (3) offerors of commercial items and nondevelopmental items other 
    than commercial items are provided an opportunity to compete in any 
    procurement to fill those requirements.
  (c) Implementation.--The head of each executive agency shall ensure 
that procurement officials in that executive agency, to the maximum 
extent practicable--
      (1) acquire commercial items or nondevelopmental items other than 
    commercial items to meet the needs of the executive agency;
      (2) require that prime contractors and subcontractors at all 
    levels under contracts of the executive agency incorporate 
    commercial items or nondevelopmental items other than commercial 
    items as components of items supplied to the executive agency;
      (3) modify requirements in appropriate cases to ensure that the 
    requirements can be met by commercial items or, to the extent that 
    commercial items suitable to meet the executive agency's needs are 
    not available, nondevelopmental items other than commercial items;
      (4) state specifications in terms that enable and encourage 
    bidders and offerors to supply commercial items or, to the extent 
    that commercial items suitable to meet the executive agency's needs 
    are not available, nondevelopmental items other than commercial 
    items in response to the executive agency solicitations;
      (5) revise the executive agency's procurement policies, 
    practices, and procedures not required by law to reduce any 
    impediments in those policies, practices, and procedures to the 
    acquisition of commercial items; and
      (6) require training of appropriate personnel in the acquisition 
    of commercial items.
  (d) Market Research.--
      (1) When to be used.--The head of an executive agency shall 
    conduct market research appropriate to the circumstances--
          (A) before developing new specifications for a procurement by 
        that executive agency; and
          (B) before soliciting bids or proposals for a contract in 
        excess of the simplified acquisition threshold.
      (2) Use of results.--The head of an executive agency shall use 
    the results of market research to determine whether commercial 
    items or, to the extent that commercial items suitable to meet the 
    executive agency's needs are not available, nondevelopmental items 
    other than commercial items are available that--
          (A) meet the executive agency's requirements;
          (B) could be modified to meet the executive agency's 
        requirements; or
          (C) could meet the executive agency's requirements if those 
        requirements were modified to a reasonable extent.
      (3) Only minimum information required to be submitted.--In 
    conducting market research, the head of an executive agency should 
    not require potential sources to submit more than the minimum 
    information that is necessary to make the determinations required 
    in paragraph (2).
  (e) Regulations.--
      (1) In general.--The Federal Acquisition Regulation shall provide 
    regulations to implement this section, sections 102, 103, 105, and 
    110 of this title, and chapter 140 of title 10.
      (2) Contract clauses.--
          (A) Definition.--In this paragraph, the term ``subcontract'' 
        includes a transfer of commercial items between divisions, 
        subsidiaries, or affiliates of a contractor or subcontractor.
          (B) List of clauses to be included.--The regulations 
        prescribed under paragraph (1) shall contain a list of contract 
        clauses to be included in contracts for the acquisition of 
        commercial end items. To the maximum extent practicable, the 
        list shall include only those contract clauses that are--
              (i) required to implement provisions of law or executive 
            orders applicable to acquisitions of commercial items or 
            commercial components; or
              (ii) determined to be consistent with standard commercial 
            practice.
          (C) Requirements of prime contractor.--The regulations shall 
        provide that the Federal Government shall not require a prime 
        contractor to apply to any of its divisions, subsidiaries, 
        affiliates, subcontractors, or suppliers that are furnishing 
        commercial items any contract clause except those that are--
              (i) required to implement provisions of law or executive 
            orders applicable to subcontractors furnishing commercial 
            items or commercial components; or
              (ii) determined to be consistent with standard commercial 
            practice.
          (D) Clauses that may be used in a contract.--To the maximum 
        extent practicable, only the contract clauses listed pursuant 
        to subparagraph (B) may be used in a contract, and only the 
        contract clauses referred to in subparagraph (C) may be 
        required to be used in a subcontract, for the acquisition of 
        commercial items or commercial components by or for an 
        executive agency.
          (E) Waiver of contract clauses.--The Federal Acquisition 
        Regulation shall provide standards and procedures for waiving 
        the use of contract clauses required pursuant to subparagraph 
        (B), other than those required by law, including standards for 
        determining the cases in which a waiver is appropriate.
      (3) Market acceptance.--
          (A) Requirement of offerors.--The Federal Acquisition 
        Regulation shall provide that under appropriate conditions the 
        head of an executive agency may require offerors to demonstrate 
        that the items offered--
              (i) have achieved commercial market acceptance or been 
            satisfactorily supplied to an executive agency under 
            current or recent contracts for the same or similar 
            requirements; and
              (ii) otherwise meet the item description, specifications, 
            or other criteria prescribed in the public notice and 
            solicitation relating to the contract.
          (B) Regulation to provide guidance on criteria.--The Federal 
        Acquisition Regulation shall provide guidance to ensure that 
        the criteria for determining commercial market acceptance 
        include the consideration of--
              (i) the minimum needs of the executive agency concerned; 
            and
              (ii) the entire relevant commercial market, including 
            small businesses.
      (4) Provisions relating to types of contracts.--
          (A) Types of contracts that may be used.--The Federal 
        Acquisition Regulation shall include, for acquisitions of 
        commercial items--
              (i) a requirement that firm, fixed price contracts or 
            fixed price with economic price adjustment contracts be 
            used to the maximum extent practicable;
              (ii) a prohibition on use of cost type contracts; and
              (iii) subject to subparagraph (B), authority for use of a 
            time-and-materials or labor-hour contract for the 
            procurement of commercial services that are commonly sold 
            to the general public through those contracts and are 
            purchased by the procuring agency on a competitive basis.
          (B) When time-and-materials or labor-hour contract may be 
        used.--A time-and-materials or labor-hour contract may be used 
        pursuant to the authority referred to in subparagraph 
        (A)(iii)--
              (i) only for a procurement of commercial services in a 
            category of commercial services described in subparagraph 
            (C); and
              (ii) only if the contracting officer for the 
            procurement--

                  (I) executes a determination and findings that no 
                other contract type is suitable;
                  (II) includes in the contract a ceiling price that 
                the contractor exceeds at its own risk; and
                  (III) authorizes a subsequent change in the ceiling 
                price only on a determination, documented in the 
                contract file, that it is in the best interest of the 
                procuring agency to change the ceiling price.

          (C) Categories of commercial services.--The categories of 
        commercial services referred to in subparagraph (B) are as 
        follows:
              (i) Commercial services procured for support of a 
            commercial item, as described in section 103(5) of this 
            title.
              (ii) Any other category of commercial services that the 
            Administrator for Federal Procurement Policy designates in 
            the Federal Acquisition Regulation for the purposes of this 
            subparagraph on the basis that--

                  (I) the commercial services in the category are of a 
                type of commercial services that are commonly sold to 
                the general public through use of time-and-materials or 
                labor-hour contracts; and
                   (II) it would be in the best interests of the 
                Federal Government to authorize use of time-and-
                materials or labor-hour contracts for purchases of the 
                commercial services in the category.

      (5) Contract quality requirements.--Regulations prescribed under 
    paragraph (1) shall include provisions that--
          (A) allow, to the maximum extent practicable, a contractor 
        under a commercial items acquisition to use the existing 
        quality assurance system of the contractor as a substitute for 
        compliance with an otherwise applicable requirement for the 
        Federal Government to inspect or test the commercial items 
        before the contractor's tender of those items for acceptance by 
        the Federal Government;
          (B) require that, to the maximum extent practicable, the 
        executive agency take advantage of warranties (including 
        extended warranties) offered by offerors of commercial items 
        and use those warranties for the repair and replacement of 
        commercial items; and
          (C) set forth guidance regarding the use of past performance 
        of commercial items and sources as a factor in contract award 
        decisions.

Sec. 3308. Planning for future competition in contracts for major 
            systems

  (a) Development Contract.--
      (1) Determining whether proposals are necessary.--In preparing a 
    solicitation for the award of a development contract for a major 
    system, the head of an agency shall consider requiring in the 
    solicitation that an offeror include in its offer proposals 
    described in paragraph (2). In determining whether to require the 
    proposals, the head of the agency shall consider the purposes for 
    which the system is being procured and the technology necessary to 
    meet the system's required capabilities. If the proposals are 
    required, the head of the agency shall consider them in evaluating 
    the offeror's price.
      (2) Contents of proposals.--The proposals that the head of an 
    agency is to consider requiring in a solicitation for the award of 
    a development contract are the following:
          (A) Proposals to incorporate in the design of the major 
        system items that are currently available within the supply 
        system of the Federal agency responsible for the major system, 
        available elsewhere in the national supply system, or 
        commercially available from more than one source.
          (B) With respect to items that are likely to be required in 
        substantial quantities during the system's service life, 
        proposals to incorporate in the design of the major system 
        items that the Federal Government will be able to acquire 
        competitively in the future.
  (b) Production Contract.--
      (1) Determining whether proposals are necessary.--In preparing a 
    solicitation for the award of a production contract for a major 
    system, the head of an agency shall consider requiring in the 
    solicitation that an offeror include in its offer proposals 
    described in paragraph (2). In determining whether to require the 
    proposals, the head of the agency shall consider the purposes for 
    which the system is being procured and the technology necessary to 
    meet the system's required capabilities. If the proposals are 
    required, the head of the agency shall consider them in evaluating 
    the offeror's price.
      (2) Content of proposals.--The proposals that the head of an 
    agency is to consider requiring in a solicitation for the award of 
    a production contract are proposals identifying opportunities to 
    ensure that the Federal Government will be able to obtain on a 
    competitive basis items procured in connection with the system that 
    are likely to be reprocured in substantial quantities during the 
    service life of the system. Proposals submitted in response to this 
    requirement may include the following:
          (A) Proposals to provide to the Federal Government the right 
        to use technical data to be provided under the contract for 
        competitive reprocurement of the item, together with the cost 
        to the Federal Government of acquiring the data and the right 
        to use the data.
          (B) Proposals for the qualification or development of 
        multiple sources of supply for the item.
  (c) Consideration of Factors as Objectives in Negotiations.--If the 
head of an agency is making a noncompetitive award of a development 
contract or a production contract for a major system, the factors 
specified in subsections (a) and (b) to be considered in evaluating an 
offer for a contract may be considered as objectives in negotiating the 
contract to be awarded.

Sec. 3309. Design-build selection procedures

  (a) Authorization.--Unless the traditional acquisition approach of 
design-bid-build established under sections 1101 to 1104 of title 40 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.
  (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--
      (1) the contracting officer anticipates that 3 or more offers 
    will be received for the contract;
      (2) design work must be performed before an offeror can develop a 
    price or cost proposal for the contract;
      (3) the offeror will incur a substantial amount of expense in 
    preparing the offer; and
      (4) the contracting officer has considered information such as 
    the following:
          (A) The extent to which the project requirements have been 
        adequately defined.
          (B) The time constraints for delivery of the project.
          (C) The capability and experience of potential contractors.
          (D) The suitability of the project for use of the two-phase 
        selection procedures.
          (E) The capability of the agency to manage the two-phase 
        selection process.
          (F) Other criteria established by the agency.
  (c) Procedures Described.--Two-phase selection procedures consist of 
the following:
      (1) Development of scope of work statement.--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 
    Federal Government's requirements (which may include criteria and 
    preliminary design, budget parameters, and schedule or delivery 
    requirements) to enable the offerors to submit proposals that meet 
    the Federal Government's needs. If the agency contracts for 
    development of the scope of work statement, the agency shall 
    contract for architectural and engineering services as defined by 
    and in accordance with sections 1101 to 1104 of title 40.
      (2) Solicitation of phase-one proposals.--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) Evaluation factors.--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), 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) Selection by contracting officer.--
          (A) Number of offerors selected and what is to be 
        evaluated.--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--
              (i) the technical submission for the proposal, including 
            design concepts or proposed solutions to requirements 
            addressed within the scope of work, or both; and
              (ii) the evaluation factors and subfactors, including 
            cost or price, that must be considered in the evaluations 
            of proposals in accordance with subsections (b) to (d) of 
            section 3306 of this title.
          (B) Separate evaluations.--The contracting officer separately 
        evaluates the submissions described in clauses (i) and (ii) of 
        subparagraph (A).
      (5) Awarding of contract.--The agency awards the contract in 
    accordance with chapter 37 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 Federal 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 Regulation shall include guidance--
      (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.

Sec. 3310. Quantities to order

  (a) Factors Affecting Quantity To Order.--Each executive agency shall 
procure supplies in a quantity that--
      (1) will result in the total cost and unit cost most advantageous 
    to the Federal Government, where practicable; and
      (2) does not exceed the quantity reasonably expected to be 
    required by the agency.
  (b) Offeror's Opinion of Quantity.--Each solicitation for a contract 
for supplies shall, if practicable, include a provision inviting each 
offeror responding to the solicitation to state an opinion on whether 
the quantity of supplies proposed to be procured is economically 
advantageous to the Federal Government and, if applicable, to recommend 
a quantity that would be more economically advantageous to the Federal 
Government. Each recommendation shall include a quotation of the total 
price and the unit price for supplies procured in each recommended 
quantity.

Sec. 3311. Qualification requirement

  (a) Definition.--In this section, the term ``qualification 
requirement'' means a requirement for testing or other quality 
assurance demonstration that must be completed by an offeror before 
award of a contract.
  (b) Actions Before Enforcing Qualification Requirement.--Except as 
provided in subsection (c), the head of an agency, before enforcing any 
qualification requirement, shall--
      (1) prepare a written justification stating the necessity for 
    establishing the qualification requirement and specify why the 
    qualification requirement must be demonstrated before contract 
    award;
      (2) specify in writing and make available to a potential offeror 
    on request all requirements that a prospective offeror, or its 
    product, must satisfy to become qualified, with those requirements 
    to be limited to those least restrictive to meet the purposes 
    necessitating the establishment of the qualification requirement;
      (3) specify an estimate of the cost of testing and evaluation 
    likely to be incurred by a potential offeror to become qualified;
      (4) ensure that a potential offeror is provided, on request, a 
    prompt opportunity to demonstrate at its own expense (except as 
    provided in subsection (d)) its ability to meet the standards 
    specified for qualification using--
          (A) qualified personnel and facilities--
              (i) of the agency concerned;
              (ii) of another agency obtained through interagency 
            agreement; or
              (iii) under contract; or
          (B) other methods approved by the agency (including use of 
        approved testing and evaluation services not provided under 
        contract to the agency);
      (5) if testing and evaluation services are provided under 
    contract to the agency for the purposes of paragraph (4), provide 
    to the extent possible that those services be provided by a 
    contractor that--
          (A) is not expected to benefit from an absence of additional 
        qualified sources; and
          (B) is required in the contract to adhere to any restriction 
        on technical data asserted by the potential offeror seeking 
        qualification; and
      (6) ensure that a potential offeror seeking qualification is 
    promptly informed whether qualification is attained and, if not 
    attained, is promptly furnished specific information about why 
    qualification was not attained.
  (c) Applicability, Waiver Authority, and Referral of Offers.--
      (1) Applicability.--Subsection (b) does not apply to a 
    qualification requirement established by statute prior to October 
    30, 1984.
      (2) Waiver authority.--
          (A) Submission of determination of unreasonableness.--Except 
        as provided in subparagraph (C), if it is unreasonable to 
        specify the standards for qualification that a prospective 
        offeror or its product must satisfy, a determination to that 
        effect shall be submitted to the advocate for competition of 
        the procuring activity responsible for the purchase of the item 
        subject to the qualification requirement.
          (B) Authority to grant waiver.--After considering any 
        comments of the advocate for competition reviewing the 
        determination, the head of the procuring activity may waive the 
        requirements of paragraphs (2) to (5) of subsection (b) for up 
        to 2 years with respect to the item subject to the 
        qualification requirement.
          (C) Nonapplicability to qualified products list.--Waiver 
        authority under this paragraph does not apply with respect to a 
        qualified products list.
      (3) Submission and consideration of offer not to be denied.--A 
    potential offeror may not be denied the opportunity to submit and 
    have considered an offer for a contract solely because the 
    potential offeror has not been identified as meeting a 
    qualification requirement if the potential offeror can demonstrate 
    to the satisfaction of the contracting officer that the potential 
    offeror or its product meets the standards established for 
    qualification or can meet those standards before the date specified 
    for award of the contract.
      (4) Referral to small business administration not required.--This 
    subsection does not require the referral of an offer to the Small 
    Business Administration pursuant to section 8(b)(7) of the Small 
    Business Act (15 U.S.C. 637(b)(7)) if the basis for the referral is 
    a challenge by the offeror to either the validity of the 
    qualification requirement or the offeror's compliance with that 
    requirement.
      (5) Delay of procurement not required.--The head of an agency 
    need not delay a proposed procurement to comply with subsection (b) 
    or to provide a potential offeror with an opportunity to 
    demonstrate its ability to meet the standards specified for 
    qualification.
  (d) Fewer Than 2 Actual Manufacturers.--
      (1) Solicitation and testing of additional sources or products.--
    If the number of qualified sources or qualified products available 
    to compete actively for an anticipated future requirement is fewer 
    than 2 actual manufacturers or the products of 2 actual 
    manufacturers, respectively, the head of the agency concerned 
    shall--
          (A) publish notice periodically soliciting additional sources 
        or products to seek qualification, unless the contracting 
        officer determines that doing so would compromise national 
        security; and
          (B) subject to paragraph (2), bear the cost of conducting the 
        specified testing and evaluation (excluding the cost associated 
        with producing the item or establishing the production, quality 
        control, or other system to be tested and evaluated) for a 
        small business concern or a product manufactured by a small 
        business concern that has met the standards specified for 
        qualification and that could reasonably be expected to compete 
        for a contract for that requirement.
      (2) When agency may bear cost.--The head of the agency concerned 
    may bear the cost under paragraph (1)(B) only if the head of the 
    agency determines that the additional qualified sources or products 
    are likely to result in cost savings from increased competition for 
    future requirements sufficient to offset (within a reasonable 
    period of time considering the duration and dollar value of 
    anticipated future requirements) the cost incurred by the agency.
      (3) Certification required.--The head of the agency shall require 
    a prospective contractor requesting the Federal Government to bear 
    testing and evaluation costs under paragraph (1)(B) to certify its 
    status as a small business concern under section 3 of the Small 
    Business Act (15 U.S.C. 632).
  (e) Examination and Revalidation of Qualification Requirement.--
Within 7 years after the establishment of a qualification requirement, 
the need for the requirement shall be examined and the standards of the 
requirement revalidated in accordance with the requirements of 
subsection (b). This subsection does not apply in the case of a 
qualification requirement for which a waiver is in effect under 
subsection (c)(2).
  (f) When Enforcement of Qualification Requirement Not Allowed.--
Except in an emergency as determined by the head of the agency, after 
the head of the agency determines not to enforce a qualification 
requirement for a solicitation, the agency may not enforce the 
requirement unless the agency complies with the requirements of 
subsection (b).

               CHAPTER 35--TRUTHFUL COST OR PRICING DATA

Sec.
3501.  General.
3502.  Required cost or pricing data and certification.
3503.  Exceptions.
3504.  Cost or pricing data on below-threshold contracts.
3505.  Submission of other information.
3506.  Price reductions for defective cost or pricing data.
3507.  Interest and penalties for certain overpayments.
3508.  Right to examine contractor records.
3509.  Notification of violations of Federal criminal law or 
          overpayments.

Sec. 3501. General

  (a) Definitions.--In this chapter:
      (1) Commercial item.--The term ``commercial item'' has the 
    meaning provided the term by section 103 of this title.
      (2) Cost or pricing data.--The term ``cost or pricing data'' 
    means all facts that, as of the date of agreement on the price of a 
    contract (or the price of a contract modification) or, if 
    applicable consistent with section 3506(a)(2) of this title, 
    another date agreed upon between the parties, a prudent buyer or 
    seller would reasonably expect to affect price negotiations 
    significantly. The term does not include information that is 
    judgmental, but does include factual information from which a 
    judgment was derived.
      (3) Subcontract.--The term ``subcontract'' includes a transfer of 
    commercial items between divisions, subsidiaries, or affiliates of 
    a contractor or a subcontractor.
  (b) Regulations.--
      (1) Minimizing abuse of commercial services item authority.--The 
    Federal Acquisition Regulation shall ensure that services that are 
    not offered and sold competitively in substantial quantities in the 
    commercial marketplace, but are of a type offered and sold 
    competitively in substantial quantities in the commercial 
    marketplace, may be treated as commercial items for purposes of 
    this chapter only if the contracting officer determines in writing 
    that the offeror has submitted sufficient information to evaluate, 
    through price analysis, the reasonableness of the price for the 
    services.
      (2) Information to submit.--To the extent necessary to make a 
    determination under paragraph (1), the contracting officer may 
    request the offeror to submit--
          (A) prices paid for the same or similar commercial items 
        under comparable terms and conditions by both government and 
        commercial customers; and
          (B) if the contracting officer determines that the 
        information described in subparagraph (A) is not sufficient to 
        determine the reasonableness of price, other relevant 
        information regarding the basis for price or cost, including 
        information on labor costs, material costs, and overhead rates.

Sec. 3502. Required cost or pricing data and certification

  (a) When Required.--The head of an executive agency shall require 
offerors, contractors, and subcontractors to make cost or pricing data 
available as follows:
      (1) Offeror for prime contract.--An offeror for a prime contract 
    under this division to be entered into using procedures other than 
    sealed-bid procedures shall be required to submit cost or pricing 
    data before the award of a contract if--
          (A) in the case of a prime contract entered into after 
        October 13, 1994, the price of the contract to the Federal 
        Government is expected to exceed $500,000; and
          (B) in the case of a prime contract entered into on or before 
        October 13, 1994, the price of the contract to the Federal 
        Government is expected to exceed $100,000.
      (2) Contractor.--The contractor for a prime contract under this 
    division shall be required to submit cost or pricing data before 
    the pricing of a change or modification to the contract if--
          (A) in the case of a change or modification made to a prime 
        contract referred to in paragraph (1)(A), the price adjustment 
        is expected to exceed $500,000;
          (B) in the case of a change or modification made to a prime 
        contract that was entered into on or before October 13, 1994, 
        and that has been modified pursuant to subsection (f), the 
        price adjustment is expected to exceed $500,000; and
          (C) in the case of a change or modification not covered by 
        subparagraph (A) or (B), the price adjustment is expected to 
        exceed $100,000.
      (3) Offeror for subcontract.--An offeror for a subcontract (at 
    any tier) of a contract under this division shall be required to 
    submit cost or pricing data before the award of the subcontract if 
    the prime contractor and each higher-tier subcontractor have been 
    required to make available cost or pricing data under this chapter 
    and--
          (A) in the case of a subcontract under a prime contract 
        referred to in paragraph (1)(A), the price of the subcontract 
        is expected to exceed $500,000;
          (B) in the case of a subcontract entered into under a prime 
        contract that was entered into on or before October 13, 1994, 
        and that has been modified pursuant to subsection (f), the 
        price of the subcontract is expected to exceed $500,000; and
          (C) in the case of a subcontract not covered by subparagraph 
        (A) or (B), the price of the subcontract is expected to exceed 
        $100,000.
      (4) Subcontractor.--The subcontractor for a subcontract covered 
    by paragraph (3) shall be required to submit cost or pricing data 
    before the pricing of a change or modification to the subcontract 
    if--
          (A) in the case of a change or modification to a subcontract 
        referred to in paragraph (3)(A) or (B), the price adjustment is 
        expected to exceed $500,000; and
          (B) in the case of a change or modification to a subcontract 
        referred to in paragraph (3)(C), the price adjustment is 
        expected to exceed $100,000.
  (b) Certification.--A person required, as an offeror, contractor, or 
subcontractor, to submit cost or pricing data under subsection (a) (or 
required by the head of the procuring activity concerned to submit the 
data under section 3504 of this title) shall be required to certify 
that, to the best of the person's knowledge and belief, the cost or 
pricing data submitted are accurate, complete, and current.
  (c) To Whom Submitted.--Cost or pricing data required to be submitted 
under subsection (a) (or under section 3504 of this title), and a 
certification required to be submitted under subsection (b), shall be 
submitted--
      (1) in the case of a submission by a prime contractor (or an 
    offeror for a prime contract), to the contracting officer for the 
    contract (or a designated representative of the contracting 
    officer); or
      (2) in the case of a submission by a subcontractor (or an offeror 
    for a subcontract), to the prime contractor.
  (d) Application of Chapter.--Except as provided under section 3503 of 
this title, this chapter applies to contracts entered into by the head 
of an executive agency on behalf of a foreign government.
  (e) Subcontracts Not Affected by Waiver.--A waiver of requirements 
for submission of certified cost or pricing data that is granted under 
section 3503(a)(3) of this title in the case of a contract or 
subcontract does not waive the requirement under subsection (a)(3) of 
this section for submission of cost or pricing data in the case of 
subcontracts under that contract or subcontract unless the head of the 
procuring activity granting the waiver determines that the requirement 
under subsection (a)(3) of this section should be waived in the case of 
those subcontracts and justifies in writing the reason for the 
determination.
  (f) Modifications to Prior Contracts.--On the request of a contractor 
that was required to submit cost or pricing data under subsection (a) 
in connection with a prime contract entered into on or before October 
13, 1994, the head of the executive agency that entered into the 
contract shall modify the contract to reflect paragraphs (2)(B) and 
(3)(B) of subsection (a). All those modifications shall be made without 
requiring consideration.
  (g) Adjustment of Amounts.--Effective on October 1 of each year that 
is divisible by 5, each amount set forth in subsection (a) shall be 
adjusted to the amount that is equal to the fiscal year 1994 constant 
dollar value of the amount set forth. Any amount, as so adjusted, that 
is not evenly divisible by $50,000 shall be rounded to the nearest 
multiple of $50,000. In the case of an amount that is evenly divisible 
by $25,000 but not evenly divisible by $50,000, the amount shall be 
rounded to the next higher multiple of $50,000.

Sec. 3503. Exceptions

  (a) In General.--Submission of certified cost or pricing data shall 
not be required under section 3502 of this title in the case of a 
contract, a subcontract, or a modification of a contract or 
subcontract--
      (1) for which the price agreed on is based on--
          (A) adequate price competition; or
          (B) prices set by law or regulation;
      (2) for the acquisition of a commercial item; or
      (3) in an exceptional case when the head of the procuring 
    activity, without delegation, determines that the requirements of 
    this chapter may be waived and justifies in writing the reasons for 
    the determination.
  (b) 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 to the 
submission of certified cost or pricing data in paragraph (1) or (2) of 
subsection (a), submission of certified cost or pricing data shall not 
be required under section 3502 of this title if--
      (1) the contract or subcontract being modified is a contract or 
    subcontract for which submission of certified cost or pricing data 
    may not be required by reason of paragraph (1) or (2) of subsection 
    (a); and
      (2) the modification would not change the contract or subcontract 
    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.

Sec. 3504. Cost or pricing data on below-threshold contracts

  (a) Authority To Require Submission.--Subject to subsection (b), when 
certified cost or pricing data are not required to be submitted by 
section 3502 of this title for a contract, subcontract, or modification 
of a contract or subcontract, the 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 the 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 the data to be submitted under this section, the head of the 
procuring activity shall justify in writing the reason for the 
requirement.
  (b) Exception.--The head of the procuring activity may not require 
certified cost or pricing data to be submitted under this section for 
any contract or subcontract, or modification of a contract or 
subcontract, covered by the exceptions in section 3503(a)(1) or (2) of 
this title.
  (c) Delegation of Authority Prohibited.--The head of a procuring 
activity may not delegate the functions under this section.

Sec. 3505. Submission of other information

  (a) Authority To Require Submission.--When certified cost or pricing 
data are not required to be submitted under this chapter for a 
contract, subcontract, or modification of a contract or subcontract, 
the contracting officer shall require submission of data other than 
certified cost or pricing data to the extent necessary to determine the 
reasonableness of the price of the contract, subcontract, or 
modification of the contract or subcontract. Except in the case of a 
contract or subcontract covered by the exceptions in section 3503(a)(1) 
of this title, the contracting officer shall require that the data 
submitted include, at a minimum, 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 for the 
procurement.
  (b) Limitations on Authority.--The Federal Acquisition Regulation 
shall include the following provisions regarding the types of 
information that contracting officers may require under subsection (a):
      (1) Reasonable limitations.--Reasonable limitations on requests 
    for sales data relating to commercial items.
      (2) Limitation on scope of request.--A requirement that a 
    contracting officer limit, to the maximum extent practicable, 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.
      (3) Information not to be disclosed.--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.

Sec. 3506. Price reductions for defective cost or pricing data

  (a) Provision Requiring Adjustment.--
      (1) In general.--A prime contract (or change or modification to a 
    prime contract) under which a certificate under section 3502(b) of 
    this title is required shall contain a provision that the price of 
    the contract to the Federal Government, including profit or fee, 
    shall be adjusted to exclude any significant amount by which it may 
    be determined by the head of the executive agency that the price 
    was increased because the contractor (or any subcontractor required 
    to make the certificate available) submitted defective cost or 
    pricing data.
      (2) What constitutes defective cost or pricing data.--For the 
    purposes of this chapter, defective cost or pricing data are cost 
    or pricing data that, as of the date of agreement on the price of 
    the contract (or another date agreed on between the parties), were 
    inaccurate, incomplete, or noncurrent. If for purposes of the 
    preceding sentence the parties agree on a date other than the date 
    of agreement on the price of the contract, the date agreed on by 
    the parties shall be as close to the date of agreement on the price 
    of the contract as is practicable.
  (b) Valid Defense.--In determining for purposes of a contract price 
adjustment under a contract provision required by subsection (a) 
whether, and to what extent, a contract price was increased because the 
contractor (or a subcontractor) submitted defective cost or pricing 
data, it is a defense that the Federal Government did not rely on the 
defective data submitted by the contractor or subcontractor.
  (c) Invalid Defenses.--It is not a defense to an adjustment of the 
price of a contract under a contract provision required by subsection 
(a) that--
      (1) the price of the contract would not have been modified even 
    if accurate, complete, and current cost or pricing data had been 
    submitted by the contractor or subcontractor because the contractor 
    or subcontractor--
          (A) was the sole source of the property or services procured; 
        or
          (B) otherwise was in a superior bargaining position with 
        respect to the property or services procured;
      (2) the contracting officer should have known that the cost or 
    pricing data in issue were defective even though the contractor or 
    subcontractor took no affirmative action to bring the character of 
    the data to the attention of the contracting officer;
      (3) the contract was based on an agreement between the contractor 
    and the Federal Government about the total cost of the contract and 
    there was no agreement about the cost of each item procured under 
    the contract; or
      (4) the prime contractor or subcontractor did not submit a 
    certification of cost or pricing data relating to the contract as 
    required by section 3502(b) of this title.
  (d) Offsets.--
      (1) When allowed.--A contractor shall be allowed to offset an 
    amount against the amount of a contract price adjustment under a 
    contract provision required by subsection (a) if--
          (A) the contractor certifies to the contracting officer (or 
        to a designated representative of the contracting officer) 
        that, to the best of the contractor's knowledge and belief, the 
        contractor is entitled to the offset; and
          (B) the contractor proves that the cost or pricing data were 
        available before the date of agreement on the price of the 
        contract (or price of the modification), or, if applicable, 
        consistent with subsection (a)(2), another date agreed on by 
        the parties, and that the data were not submitted as specified 
        in section 3502(c) of this title before that date.
      (2) When not allowed.--A contractor shall not be allowed to 
    offset an amount otherwise authorized to be offset under paragraph 
    (1) if--
          (A) the certification under section 3502(b) of this title 
        with respect to the cost or pricing data involved was known to 
        be false when signed; or
          (B) the Federal Government proves that, had the cost or 
        pricing data referred to in paragraph (1)(B) been submitted to 
        the Federal Government before date of agreement on the price of 
        the contract (or price of the modification), or, if applicable, 
        under subsection (a)(2), another date agreed on by the parties, 
        the submission of the cost or pricing data would not have 
        resulted in an increase in that price in the amount to be 
        offset.

Sec. 3507. Interest and penalties for certain overpayments

  (a) In General.--If the Federal Government makes an overpayment to a 
contractor under a contract with an executive agency subject to this 
chapter and the overpayment was due to the submission by the contractor 
of defective cost or pricing data, the contractor shall be liable to 
the Federal Government--
      (1) for interest on the amount of the overpayment, to be 
    computed--
          (A) for the period beginning on the date the overpayment was 
        made to the contractor and ending on the date the contractor 
        repays the amount of the overpayment to the Federal Government; 
        and
          (B) at the current rate prescribed by the Secretary of the 
        Treasury under section 6621 of the Internal Revenue Code of 
        1986 (26 U.S.C. 6621); and
      (2) if the submission of the defective data was a knowing 
    submission, for an additional amount equal to the amount of the 
    overpayment.
  (b) Liability Not Affected by Refusal To Submit Certification.--Any 
liability under this section of a contractor that submits cost or 
pricing data but refuses to submit the certification required by 
section 3502(b) of this title with respect to the cost or pricing data 
is not affected by the refusal to submit the certification.

Sec. 3508. Right to examine contractor records

  For the purpose of evaluating the accuracy, completeness, and 
currency of cost or pricing data required to be submitted by this 
chapter, an executive agency shall have the authority provided by 
section 4706(b)(2) of this title.

Sec. 3509. Notification of violations of Federal criminal law or 
            overpayments

  (a) Definition.--In this section, the term ``covered contract'' means 
any contract in an amount greater than $5,000,000 and more than 120 
days in duration.
  (b) Federal Acquisition Regulation.--The Federal Acquisition 
Regulation shall include, pursuant to FAR Case 2007-006 (as published 
at 72 Fed. Reg. 64019, November 14, 2007) or any follow-on FAR case, 
provisions that require timely notification by Federal contractors of 
violations of Federal criminal law or overpayments in connection with 
the award or performance of covered contracts or subcontracts, 
including those performed outside the United States and those for 
commercial items.

                   CHAPTER 37--AWARDING OF CONTRACTS

Sec.
3701.  Basis of award and rejection.
3702.  Sealed bids.
3703.  Competitive proposals.
3704.  Post-award debriefings.
3705.  Pre-award debriefings.
3706.  Encouragement of alternative dispute resolution.
3707.  Antitrust violations.
3708.  Protests.

Sec. 3701. Basis of award and rejection

  (a) Award.--An executive agency shall evaluate sealed bids and 
competitive proposals, and award a contract, based solely on the 
factors specified in the solicitation.
  (b) Rejection.--All sealed bids or competitive proposals received in 
response to a solicitation may be rejected if the agency head 
determines that rejection is in the public interest.

Sec. 3702. Sealed bids

  (a) Opening of Bids.--Sealed bids shall be opened publicly at the 
time and place stated in the solicitation.
  (b) Criteria for Awarding Contract.--The executive agency shall 
evaluate the bids in accordance with section 3701(a) of this title 
without discussions with the bidders and, except as provided in section 
3701(b) of this title, shall award a contract with reasonable 
promptness to the responsible source whose bid conforms to the 
solicitation and is most advantageous to the Federal Government, 
considering only price and the other price-related factors included in 
the solicitation.
  (c) Notice of Award.--The award of a contract shall be made by 
transmitting, in writing or by electronic means, notice of the award to 
the successful bidder. Within 3 days after the date of contract award, 
the executive agency shall notify, in writing or by electronic means, 
each bidder not awarded the contract that the contract has been 
awarded.

Sec. 3703. Competitive proposals

  (a) Evaluation and Award.--An executive agency shall evaluate 
competitive proposals in accordance with section 3701(a) of this title 
and may award a contract--
      (1) after discussions with the offerors, provided that written or 
    oral discussions have been conducted with all responsible offerors 
    who submit proposals within the competitive range; or
      (2) based on the proposals received and without discussions with 
    the offerors (other than discussions conducted for the purpose of 
    minor clarification), if, as required by section 3306(b)(2)(B)(i) 
    of this title, the solicitation included a statement that proposals 
    are intended to be evaluated, and award made, without discussions 
    unless discussions are determined to be necessary.
  (b) Limit on Number of Proposals.--If the contracting officer 
determines that the number of offerors that would otherwise be included 
in the competitive range under subsection (a)(1) exceeds the number at 
which an efficient competition can be conducted, the contracting 
officer may limit the number of proposals in the competitive range, in 
accordance with the criteria specified in the solicitation, to the 
greatest number that will permit an efficient competition among the 
offerors rated most highly in accordance with those criteria.
  (c) Criteria for Awarding Contract.--Except as otherwise provided in 
section 3701(b) of this title, the executive agency shall award a 
contract with reasonable promptness to the responsible source whose 
proposal is most advantageous to the Federal Government, considering 
only cost or price and the other factors included in the solicitation.
  (d) Notice of Award.--The executive agency shall award the contract 
by transmitting, in writing or by electronic means, notice of the award 
to that source and, within 3 days after the date of contract award, 
shall notify, in writing or by electronic means, all other offerors of 
the rejection of their proposals.

Sec. 3704. Post-award debriefings

  (a) Request for Debriefing.--When a contract is awarded by the head 
of an executive agency on the basis of competitive proposals, an 
unsuccessful offeror, on written request received by the agency within 
3 days after the date on which the unsuccessful offeror receives the 
notification of the contract award, shall be debriefed and furnished 
the basis for the selection decision and contract award.
  (b) When Debriefing To Be Conducted.--The executive agency shall 
debrief the offeror within, to the maximum extent practicable, 5 days 
after receipt of the request by the executive agency.
  (c) Information To Be Provided.--The debriefing shall include, at a 
minimum--
      (1) the executive agency's evaluation of the significant weak or 
    deficient factors in the offeror's offer;
      (2) the overall evaluated cost and technical rating of the offer 
    of the contractor awarded the contract and the overall evaluated 
    cost and technical rating of the offer of the debriefed offeror;
      (3) the overall ranking of all offers;
      (4) a summary of the rationale for the award;
      (5) in the case of a proposal that includes a commercial item 
    that is an end item under the contract, the make and model of the 
    item being provided in accordance with the offer of the contractor 
    awarded the contract; and
      (6) 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) Information Not To Be Included.--The debriefing may not include 
point-by-point comparisons of the debriefed offeror's offer with other 
offers and may not disclose any information that is exempt from 
disclosure under section 552(b) of title 5.
  (e) Inclusion of Statement in Solicitation.--Each solicitation for 
competitive proposals shall include a statement that information 
described in subsection (c) may be disclosed in post-award debriefings.
  (f) After Successful Protest.--If, within one year after the date of 
the contract award and as a result of a successful procurement protest, 
the executive agency seeks to fulfill the requirement under the 
protested contract either on the basis of a new solicitation of offers 
or on the basis of new best and final offers requested for that 
contract, the head of the executive agency shall make available to all 
offerors--
      (1) the information provided in debriefings under this section 
    regarding the offer of the contractor awarded the contract; and
      (2) the same information that would have been provided to the 
    original offerors.
  (g) Summary To Be Included in File.--The contracting officer shall 
include a summary of the debriefing in the contract file.

Sec. 3705. Pre-award debriefings

  (a) Request for Debriefing.--When the contracting officer excludes an 
offeror submitting a competitive proposal from the competitive range 
(or otherwise excludes that 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.
  (b) When Debriefing To Be Conducted.--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 Federal Government to conduct a debriefing at 
that time.
  (c) Precondition for Post-Award Debriefing.--The contracting officer 
is required to debrief an excluded offeror in accordance with section 
3704 of this title only if that offeror requested and was refused a 
pre-award debriefing under subsections (a) and (b).
  (d) Information To Be Provided.--The debriefing conducted under this 
section shall include--
      (1) the executive agency's evaluation of the significant elements 
    in the offeror's offer;
      (2) a summary of the rationale for the offeror's exclusion; and
      (3) 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.
  (e) Information Not To Be Disclosed.--The debriefing conducted 
pursuant to this section 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.
  (f) Summary To Be Included in File.--The contracting officer shall 
include a summary of the debriefing in the contract file.

Sec. 3706. Encouragement of alternative dispute resolution

  The Federal Acquisition Regulation shall include a provision 
encouraging the use of alternative dispute resolution techniques to 
provide informal, expeditious, and inexpensive procedures for an 
offeror to consider using before filing a protest, prior to the award 
of a contract, of the exclusion of the offeror from the competitive 
range (or otherwise from further consideration) for that contract.

Sec. 3707. Antitrust violations

  If the agency head considers that a bid or proposal evidences a 
violation of the antitrust laws, the agency head shall refer the bid or 
proposal to the Attorney General for appropriate action.

Sec. 3708. Protests

  (a) Protest File.--
      (1) Establishment and access.--If, in the case of a solicitation 
    for a contract issued by, or an award or proposed award of a 
    contract by, the head of an executive agency, a protest is filed 
    pursuant to the procedures in subchapter V of chapter 35 of title 
    31, and an actual or prospective offeror requests, a file of the 
    protest shall be established by the procuring activity and 
    reasonable access shall be provided to actual or prospective 
    offerors.
      (2) Redacted information.--Information exempt from disclosure 
    under section 552 of title 5 may be redacted in a file established 
    pursuant to paragraph (1) unless an applicable protective order 
    provides otherwise.
  (b) Agency Actions on Protests.--If, in connection with a protest, 
the head of an executive agency determines that a solicitation, 
proposed award, or award does not comply with the requirements of law 
or regulation, the head of the executive agency may--
      (1) take any action set out in subparagraphs (A) to (F) of 
    subsection (b)(1) of section 3554 of title 31; and
      (2) pay costs described in paragraph (1) of section 3554(c) of 
    title 31 within the limits referred to in paragraph (2) of section 
    3554(c).

                CHAPTER 39--SPECIFIC TYPES OF CONTRACTS

Sec.
3901.  Contracts awarded using procedures other than sealed-bid 
          procedures.
3902.  Severable services contracts for periods crossing fiscal years.
3903.  Multiyear contracts.
3904.  Contract authority for severable services contracts and multiyear 
          contracts.
3905.  Cost contracts.
3906.  Cost-reimbursement contracts.

Sec. 3901. Contracts awarded using procedures other than sealed-bid 
            procedures

  (a) Authorized Types.--Except as provided in section 3905 of this 
title, contracts awarded after using procedures other than sealed-bid 
procedures may be of any type which in the opinion of the agency head 
will promote the best interests of the Federal Government.
  (b) Required Warranty.--
      (1) Content.--Every contract awarded after using procedures other 
    than sealed-bid procedures shall contain a suitable warranty, as 
    determined by the agency head, by the contractor that no person or 
    selling agency has been employed or retained to solicit or secure 
    the contract on an agreement or understanding for a commission, 
    percentage, brokerage, or contingent fee, except for bona fide 
    employees or bona fide established commercial or selling agencies 
    the contractor maintains to secure business.
      (2) Remedy for breach or violation.--For the breach or violation 
    of the warranty, the Federal Government may annul the contract 
    without liability or deduct from the contract price or 
    consideration the full amount of the commission, percentage, 
    brokerage, or contingent fee.
      (3) Nonapplication.--Paragraph (1) does not apply to a contract 
    for an amount that is not greater than the simplified acquisition 
    threshold or to a contract for the acquisition of commercial items.

Sec. 3902. Severable services contracts for periods crossing fiscal 
            years

  (a) Authority To Enter Into Contract.--The head of an executive 
agency may enter into a contract for the procurement of severable 
services for a period that begins in one fiscal year and ends in the 
next fiscal year if (without regard to any option to extend the period 
of the contract) the contract period does not exceed one year.
  (b) Obligation of Funds.--Funds made available for a fiscal year may 
be obligated for the total amount of a contract entered into under the 
authority of this section.

Sec. 3903. Multiyear contracts

  (a) Definition.--In this section, a multiyear contract is a contract 
for the purchase of property or services for more than one, but not 
more than 5, program years.
  (b) Authority To Enter Into Contract.--An executive agency may enter 
into a multiyear contract for the acquisition of property or services 
if--
      (1) funds are available and obligated for the contract, for the 
    full period of the contract or for the first fiscal year in which 
    the contract is in effect, and for the estimated costs associated 
    with a necessary termination of the contract; and
      (2) the executive agency determines that--
          (A) the need for the property or services is reasonably firm 
        and continuing over the period of the contract; and
          (B) a multiyear contract will serve the best interests of the 
        Federal Government by encouraging full and open competition or 
        promoting economy in administration, performance, and operation 
        of the agency's programs.
  (c) Termination Clause.--A multiyear contract entered into under the 
authority of this section shall include a clause that provides that the 
contract shall be terminated if funds are not made available for the 
continuation of the contract in a fiscal year covered by the contract. 
Funds available for paying termination costs shall remain available for 
that purpose until the costs associated with termination of the 
contract are paid.
  (d) Cancellation Ceiling Notice.--Before a contract described in 
subsection (b) that contains a clause setting forth a cancellation 
ceiling in excess of $10,000,000 may be awarded, the executive agency 
shall give written notification of the proposed contract and of the 
proposed cancellation ceiling for that contract to Congress. The 
contract may not be awarded until the end of the 30-day period 
beginning on the date of the notification.
  (e) Contingency Clause for Appropriation of Funds.--A multiyear 
contract may provide that performance under the contract after the 
first year of the contract is contingent on the appropriation of funds 
and (if the contract does so provide) that a cancellation payment shall 
be made to the contractor if the funds are not appropriated.
  (f) Other Law Not Affected.--This section does not modify or affect 
any other provision of law that authorizes multiyear contracts.

Sec. 3904. Contract authority for severable services contracts and 
            multiyear contracts

  (a) Comptroller General.--The Comptroller General may use available 
funds to enter into contracts for the procurement of severable services 
for a period that begins in one fiscal year and ends in the next fiscal 
year and to enter into multiyear contracts for the acquisition of 
property and nonaudit-related services to the same extent as executive 
agencies under sections 3902 and 3903 of this title.
  (b) Library of Congress.--The Library of Congress may use available 
funds to enter into contracts for the lease or procurement of severable 
services for a period that begins in one fiscal year and ends in the 
next fiscal year and to enter into multiyear contracts for the 
acquisition of property and services pursuant to sections 3902 and 3903 
of this title.
  (c) Chief Administrative Officer of the House of Representatives.--
The Chief Administrative Officer of the House of Representatives may 
enter into--
      (1) contracts for the procurement of severable services for a 
    period that begins in one fiscal year and ends in the next fiscal 
    year to the same extent as the head of an executive agency under 
    the authority of section 3902 of this title; and
      (2) multiyear contracts for the acquisitions of property and 
    nonaudit-related services to the same extent as executive agencies 
    under the authority of section 3903 of this title.
  (d) Congressional Budget Office.--The Congressional Budget Office may 
use available funds to enter into contracts for the procurement of 
severable services for a period that begins in one fiscal year and ends 
in the next fiscal year and may enter into multiyear contracts for the 
acquisition of property and services to the same extent as executive 
agencies under the authority of sections 3902 and 3903 of this title.
  (e) Secretary and Sergeant at Arms and Doorkeeper of the Senate.--
Subject to regulations prescribed by the Committee on Rules and 
Administration of the Senate, the Secretary and the Sergeant at Arms 
and Doorkeeper of the Senate may enter into--
      (1) contracts for the procurement of severable services for a 
    period that begins in one fiscal year and ends in the next fiscal 
    year to the same extent and under the same conditions as the head 
    of an executive agency under the authority of section 3902 of this 
    title; and
      (2) multiyear contracts for the acquisition of property and 
    services to the same extent and under the same conditions as 
    executive agencies under the authority of section 3903 of this 
    title.
  (f) Capitol Police.--The United States Capitol Police may enter 
into--
      (1) contracts for the procurement of severable services for a 
    period that begins in one fiscal year and ends in the next fiscal 
    year to the same extent as the head of an executive agency under 
    the authority of section 3902 of this title; and
      (2) multiyear contracts for the acquisitions of property and 
    nonaudit-related services to the same extent as executive agencies 
    under the authority of section 3903 of this title.
  (g) Architect of the Capitol.--The Architect of the Capitol may enter 
into--
      (1) contracts for the procurement of severable services for a 
    period that begins in one fiscal year and ends in the next fiscal 
    year to the same extent as the head of an executive agency under 
    the authority of section 3902 of this title; and
      (2) multiyear contracts for the acquisitions of property and 
    nonaudit-related services to the same extent as executive agencies 
    under the authority of section 3903 of this title.
  (h) Secretary of the Smithsonian Institution.--The Secretary of the 
Smithsonian Institution may enter into--
      (1) contracts for the procurement of severable services for a 
    period that begins in one fiscal year and ends in the next fiscal 
    year under the authority of section 3902 of this title; and
      (2) multiyear contracts for the acquisition of property and 
    services under the authority of section 3903 of this title.

Sec. 3905. Cost contracts

  (a) Cost-Plus-A-Percentage-Of-Cost Contracts Disallowed.--The cost-
plus-a-percentage-of-cost system of contracting shall not be used.
  (b) Cost-Plus-A-Fixed-Fee Contracts.--
      (1) In general.--Except as provided in paragraphs (2) and (3), 
    the fee in a cost-plus-a-fixed-fee contract shall not exceed 10 
    percent of the estimated cost of the contract, not including the 
    fee, as determined by the agency head at the time of entering into 
    the contract.
      (2) Experimental, developmental, or research work.--The fee in a 
    cost-plus-a-fixed-fee contract for experimental, developmental, or 
    research work shall not exceed 15 percent of the estimated cost of 
    the contract, not including the fee.
      (3) Architectural or engineering services.--The fee in a cost-
    plus-a-fixed-fee contract for architectural or engineering services 
    relating to any public works or utility project may include the 
    contractor's costs and shall not exceed 6 percent of the estimated 
    cost, not including the fee, as determined by the agency head at 
    the time of entering into the contract, of the project to which the 
    fee applies.
  (c) Notification.--All cost and cost-plus-a-fixed-fee contracts shall 
provide for advance notification by the contractor to the procuring 
agency of any subcontract on a cost-plus-a-fixed-fee basis and of any 
fixed-price subcontract or purchase order which exceeds in dollar 
amount either the simplified acquisition threshold or 5 percent of the 
total estimated cost of the prime contract.
  (d) Right To Audit.--A procuring agency, through any authorized 
representative thereof, has the right to inspect the plans and to audit 
the books and records of a prime contractor or subcontractor engaged in 
the performance of a cost or cost-plus-a-fixed-fee contract.

Sec. 3906. Cost-reimbursement contracts

  (a) Definition.--In this section, the term ``executive agency'' has 
the same meaning given in section 133 of this title.
  (b) Regulations on the Use of Cost-Reimbursement Contracts.--The 
Federal Acquisition Regulation shall address the use of cost-
reimbursement contracts.
  (c) Content.--The regulations promulgated under subsection (b) shall 
include guidance regarding--
      (1) when and under what circumstances cost-reimbursement 
    contracts are appropriate;
      (2) the acquisition plan findings necessary to support a decision 
    to use cost-reimbursement contracts; and
      (3) the acquisition workforce resources necessary to award and 
    manage cost-reimbursement contracts.
  (d) Annual Report.--
      (1) In general.--The Director of the Office of Management and 
    Budget shall submit an annual report to Congressional committees 
    identified in subsection (e) on the use of cost-reimbursement 
    contracts and task or delivery orders by all executive agencies.
      (2) Contents.--The report shall include--
          (A) the total number and value of contracts awarded and 
        orders issued during the covered fiscal year;
          (B) the total number and value of cost-reimbursement 
        contracts awarded and orders issued during the covered fiscal 
        year; and
          (C) an assessment of the effectiveness of the regulations 
        promulgated pursuant to subsection (b) in ensuring the 
        appropriate use of cost-reimbursement contracts.
      (3) Time requirements.--
          (A) Deadline.--The report shall be submitted no later than 
        March 1 and shall cover the fiscal year ending September 30 of 
        the prior year.
          (B) Limitation.--The report shall be submitted from March 1, 
        2009, until March 1, 2014.
  (e) Congressional Committees.--The report required by subsection (d) 
shall be submitted to--
      (1) the Committee on Oversight and Government Reform of the House 
    of Representatives;
      (2) the Committee on Homeland Security and Governmental Affairs 
    of the Senate;
      (3) the Committees on Appropriations of the House of 
    Representatives and the Senate; and
      (4) in the case of the Department of Defense and the Department 
    of Energy, the Committees on Armed Services of the Senate and the 
    House of Representatives.

             CHAPTER 41--TASK AND DELIVERY ORDER CONTRACTS

Sec.
4101.  Definitions.
4102.  Authorities or responsibilities not affected.
4103.  General authority.
4104.  Guidance on use of task and delivery order contracts.
4105.  Advisory and assistance services.
4106.  Orders.

Sec. 4101. Definitions

  In this chapter:
      (1) Delivery order contract.--The term ``delivery order 
    contract'' means a contract for property that--
          (A) does not procure or specify a firm quantity of property 
        (other than a minimum or maximum quantity); and
          (B) provides for the issuance of orders for the delivery of 
        property during the period of the contract.
      (2) Task order contract.--The term ``task order contract'' means 
    a contract for services that--
          (A) does not procure or specify a firm quantity of services 
        (other than a minimum or maximum quantity); and
          (B) provides for the issuance of orders for the performance 
        of tasks during the period of the contract.

Sec. 4102. Authorities or responsibilities not affected

  This chapter does not modify or supersede, and is not intended to 
impair or restrict, authorities or responsibilities under sections 1101 
to 1104 of title 40.

Sec. 4103. General authority

  (a) Authority To Award.--Subject to the requirements of this section, 
section 4106 of this title, and other applicable law, the head of an 
executive agency may enter into a task or delivery order contract for 
procurement of services or property.
  (b) Solicitation.--The solicitation for a task or delivery order 
contract shall include--
      (1) the period of the contract, including the number of options 
    to extend the contract and the period for which the contract may be 
    extended under each option;
      (2) the maximum quantity or dollar value of the services or 
    property to be procured under the contract; and
      (3) a statement of work, specifications, or other description 
    that reasonably describes the general scope, nature, complexity, 
    and purposes of the services or property to be procured under the 
    contract.
  (c) Applicability of Restriction on Use of Noncompetitive 
Procedures.--The head of an executive agency may use procedures other 
than competitive procedures to enter into a task or delivery order 
contract under this section only if an exception in section 3304(a) of 
this title applies to the contract and the use of those procedures is 
approved in accordance with section 3304(e) of this title.
  (d) Single and Multiple Contract Awards.--
      (1) Exercise of authority.--The head of an executive agency may 
    exercise the authority provided in this section--
          (A) to award a single task or delivery order contract; or
          (B) if the solicitation states that the head of the executive 
        agency has the option to do so, to award separate task or 
        delivery order contracts for the same or similar services or 
        property to 2 or more sources.
      (2) Determination not required.--No determination under section 
    3303 of this title is required for an award of multiple task or 
    delivery order contracts under paragraph (1)(B).
      (3) Single source award for task or delivery order contracts 
    exceeding  $100,000,000.--
          (A) When single awards are allowed.--No task or delivery 
        order contract in an amount estimated to exceed $100,000,000 
        (including all options) may be awarded to a single source 
        unless the head of the executive agency determines in writing 
        that--
              (i) the task or delivery orders expected under the 
            contract are so integrally related that only a single 
            source can reasonably perform the work;
              (ii) the contract provides only for firm, fixed price 
            task orders or delivery orders for--

                  (I) products for which unit prices are established in 
                the contract; or
                  (II) services for which prices are established in the 
                contract for the specific tasks to be performed;

              (iii) only one source is qualified and capable of 
            performing the work at a reasonable price to the Federal 
            Government; or
              (iv) because of exceptional circumstances, it is 
            necessary in the public interest to award the contract to a 
            single source.
          (B) Notification of Congress.--The head of the executive 
        agency shall notify Congress within 30 days after any 
        determination under subparagraph (A)(iv).
      (4) Regulations.--Regulations implementing this subsection shall 
    establish--
          (A) a preference for awarding, to the maximum extent 
        practicable, multiple task or delivery order contracts for the 
        same or similar services or property under paragraph (1)(B); 
        and
          (B) criteria for determining when award of multiple task or 
        delivery order contracts would not be in the best interest of 
        the Federal Government.
  (e) Contract Modifications.--A task or delivery order may not 
increase the scope, period, or maximum value of the task or delivery 
order contract under which the order is issued. The scope, period, or 
maximum value of the contract may be increased only by modification of 
the contract.
  (f) Inapplicability to Contracts for Advisory and Assistance 
Services.--Except as otherwise specifically provided in section 4105 of 
this title, this section does not apply to a task or delivery order 
contract for the acquisition of advisory and assistance services (as 
defined in section 1105(g) of title 31).
  (g) Relationship to Other Contracting Authority.--Nothing in this 
section may be construed to limit or expand any authority of the head 
of an executive agency or the Administrator of General Services to 
enter into schedule, multiple award, or task or delivery order 
contracts under any other provision of law.

Sec. 4104. Guidance on use of task and delivery order contracts

  (a) Guidance in Federal Acquisition Regulation.--The Federal 
Acquisition Regulation issued in accordance with sections 1121(b) and 
1303(a)(1) of this title shall provide guidance to agencies on the 
appropriate use of task and delivery order contracts in accordance with 
this chapter and sections 2304a to 2304d of title 10.
  (b) Content of Regulations.--The regulations issued pursuant to 
subsection (a) at a minimum shall provide specific guidance on--
      (1) the appropriate use of Government-wide and other multiagency 
    contracts entered into in accordance with this chapter and sections 
    2304a to 2304d of title 10; and
      (2) steps that agencies should take in entering into and 
    administering multiple award task and delivery order contracts to 
    ensure compliance with the requirement in--
          (A) section 11312 of title 40 for capital planning and 
        investment control in purchases of information technology 
        products and services;
          (B) section 4106(c) of this title and section 2304c(b) of 
        title 10 to ensure that all contractors are afforded a fair 
        opportunity to be considered for the award of task and delivery 
        orders; and
          (C) section 4106(e) of this title and section 2304c(c) of 
        title 10 for a statement of work in each task or delivery order 
        issued that clearly specifies all tasks to be performed or 
        property to be delivered under the order.
  (c) Federal Supply Schedules Program.--The Administrator for Federal 
Procurement Policy shall consult with the Administrator of General 
Services to assess the effectiveness of the multiple awards schedule 
program of the General Services Administration referred to in section 
152(3) of this title that is administered as the Federal Supply 
Schedules program. The assessment shall include examination of--
      (1) the administration of the program by the Administrator of 
    General Services; and
      (2) the ordering and program practices followed by Federal 
    customer agencies in using schedules established under the program.

Sec. 4105. Advisory and assistance services

  (a) Definition.--In this section, the term ``advisory and assistance 
services'' has the same meaning given that term in section 1105(g) of 
title 31.
  (b) Authority To Award.--
      (1) In general.--Subject to the requirements of this section, 
    section 4106 of this title, and other applicable law, the head of 
    an executive agency may enter into a task order contract for 
    procurement of advisory and assistance services.
      (2) Only under this section.--The head of an executive agency may 
    enter into a task order contract for advisory and assistance 
    services only under this section.
    (c) Contract Period.--The period of a task order contract entered 
into under this section, including all periods of extensions of the 
contract under options, modifications, or otherwise, may not exceed 5 
years unless a longer period is specifically authorized in a law that 
is applicable to the contract.
  (d) Content of Notice.--The notice required by section 1708 of this 
title and section 8(e) of the Small Business Act (15 U.S.C. 637(e)) 
shall reasonably and fairly describe the general scope, magnitude, and 
duration of the proposed task order contract in a manner that would 
reasonably enable a potential offeror to decide whether to request the 
solicitation and consider submitting an offer.
  (e) Required Content of Solicitation and Contract.--
      (1) Solicitation.--The solicitation shall include the information 
    (regarding services) described in section 4103(b) of this title.
      (2) Contract.--A task order contract entered into under this 
    section shall contain the same information that is required by 
    paragraph (1) to be included in the solicitation of offers for that 
    contract.
  (f) Multiple Awards.--
      (1) Authority to make multiple awards.--On the basis of one 
    solicitation, the head of an executive agency may award separate 
    task order contracts under this section for the same or similar 
    services to 2 or more sources if the solicitation states that the 
    head of the executive agency has the option to do so.
      (2) Content of solicitation.--In the case of a task order 
    contract for advisory and assistance services to be entered into 
    under this section, if the contract period is to exceed 3 years and 
    the contract amount is estimated to exceed $10,000,000 (including 
    all options), the solicitation shall--
          (A) provide for a multiple award authorized under paragraph 
        (1); and
          (B) include a statement that the head of the executive agency 
        may also elect to award only one task order contract if the 
        head of the executive agency determines in writing that only 
        one of the offerors is capable of providing the services 
        required at the level of quality required.
      (3) Nonapplication.--Paragraph (2) does not apply in the case of 
    a solicitation for which the head of the executive agency concerned 
    determines in writing that, because the services required under the 
    contract are unique or highly specialized, it is not practicable to 
    award more than one contract.
  (g) Contract Modifications.--
      (1) Increase in scope, period, or maximum value of contract only 
    by modification of contract.--A task order may not increase the 
    scope, period, or maximum value of the task order contract under 
    which the order is issued. The scope, period, or maximum value of 
    the contract may be increased only by modification of the contract.
      (2) Use of competitive procedures.--Unless use of procedures 
    other than competitive procedures is authorized by an exception in 
    section 3304(a) of this title and approved in accordance with 
    section 3304(e) of this title, competitive procedures shall be used 
    for making such a modification.
      (3) Notice.--Notice regarding the modification shall be provided 
    in accordance with section 1708 of this title and section 8(e) of 
    the Small Business Act (15 U.S.C. 637(e)).
  (h) Contract Extensions.--
      (1) When contract may be extended.--Notwithstanding the 
    limitation on the contract period set forth in subsection (c) or in 
    a solicitation or contract pursuant to subsection (f), a contract 
    entered into by the head of an executive agency under this section 
    may be extended on a sole-source basis for a period not exceeding 6 
    months if the head of the executive agency determines that--
          (A) the award of a follow-on contract has been delayed by 
        circumstances that were not reasonably foreseeable at the time 
        the initial contract was entered into; and
          (B) the extension is necessary to ensure continuity of the 
        receipt of services pending the award of, and commencement of 
        performance under, the follow-on contract.
      (2) Limit of one extension.--A task order contract may be 
    extended under paragraph (1) only once and only in accordance with 
    the limitations and requirements of this subsection.
  (i) Inapplicability to Certain Contracts.--This section does not 
apply to a contract for the acquisition of property or services that 
includes acquisition of advisory and assistance services if the head of 
the executive agency entering into the contract determines that, under 
the contract, advisory and assistance services are necessarily incident 
to, and not a significant component of, the contract.

Sec. 4106. Orders

  (a) Application.--This section applies to task and delivery order 
contracts entered into under sections 4103 and 4105 of this title.
  (b) Actions Not Required for Issuance of Orders.--The following 
actions are not required for issuance of a task or delivery order under 
a task or delivery order contract:
      (1) A separate notice for the order under section 1708 of this 
    title or section 8(e) of the Small Business Act (15 U.S.C. 637(e)).
      (2) Except as provided in subsection (c), a competition (or a 
    waiver of competition approved in accordance with section 3304(e) 
    of this title) that is separate from that used for entering into 
    the contract.
  (c) Multiple Award Contracts.--When multiple contracts are awarded 
under section 4103(d)(1)(B) or 4105(f) of this title, all contractors 
awarded the contracts shall be provided a fair opportunity to be 
considered, pursuant to procedures set forth in the contracts, for each 
task or delivery order in excess of $2,500 that is to be issued under 
any of the contracts, unless--
      (1) the executive agency's need for the services or property 
    ordered is of such unusual urgency that providing the opportunity 
    to all of those contractors would result in unacceptable delays in 
    fulfilling that need;
      (2) only one of those contractors is capable of providing the 
    services or property required at the level of quality required 
    because the services or property ordered are unique or highly 
    specialized;
      (3) the task or delivery order should be issued on a sole-source 
    basis in the interest of economy and efficiency because it is a 
    logical follow-on to a task or delivery order already issued on a 
    competitive basis; or
      (4) it is necessary to place the order with a particular 
    contractor to satisfy a minimum guarantee.
  (d) Enhanced Competition for Orders in Excess of $5,000,000.--In the 
case of a task or delivery order in excess of $5,000,000, the 
requirement to provide all contractors a fair opportunity to be 
considered under subsection (c) is not met unless all such contractors 
are provided, at a minimum--
      (1) a notice of the task or delivery order that includes a clear 
    statement of the executive agency's requirements;
      (2) a reasonable period of time to provide a proposal in response 
    to the notice;
      (3) disclosure of the significant factors and subfactors, 
    including cost or price, that the executive agency expects to 
    consider in evaluating such proposals, and their relative 
    importance;
      (4) in the case of an award that is to be made on a best value 
    basis, a written statement documenting--
          (A) the basis for the award; and
          (B) the relative importance of quality and price or cost 
        factors; and
      (5) an opportunity for a post-award debriefing consistent with 
    the requirements of section 3704 of this title.
  (e) Statement of Work.--A task or delivery order shall include a 
statement of work that clearly specifies all tasks to be performed or 
property to be delivered under the order.
  (f) Protests.--
      (1) Protest not authorized.--A protest is not authorized in 
    connection with the issuance or proposed issuance of a task or 
    delivery order except for--
          (A) a protest on the ground that the order increases the 
        scope, period, or maximum value of the contract under which the 
        order is issued; or
          (B) a protest of an order valued in excess of $10,000,000.
      (2) Jurisdiction over protests.--Notwithstanding section 3556 of 
    title 31, the Comptroller General shall have exclusive jurisdiction 
    of a protest authorized under paragraph (1)(B).
      (3) Effective period.--This subsection shall be in effect for 
    three years, beginning on the date that is 120 days after January 
    28, 2008.
  (g) Task and Delivery Order Ombudsman.--
      (1) Appointment or designation and responsibilities.--The head of 
    each executive agency who awards multiple task or delivery order 
    contracts under section 4103(d)(1)(B) or 4105(f) of this title 
    shall appoint or designate a task and delivery order ombudsman who 
    shall be responsible for reviewing complaints from the contractors 
    on those contracts and ensuring that all of the contractors are 
    afforded a fair opportunity to be considered for task or delivery 
    orders when required under subsection (c).
      (2) Who is eligible.--The task and delivery order ombudsman shall 
    be a senior agency official who is independent of the contracting 
    officer for the contracts and may be the executive agency's 
    advocate for competition.

                      CHAPTER 43--ALLOWABLE COSTS

Sec.
4301.  Definitions.
4302.  Adjustment of threshold amount of covered contract.
4303.  Effect of submission of unallowable costs.
4304.  Specific costs not allowable.
4305.  Required regulations.
4306.  Applicability of regulations to subcontractors.
4307.  Contractor certification.
4308.  Penalties for submission of cost known to be unallowable.
4309.  Burden of proof on contractor.
4310.  Proceeding costs not allowable.

Sec. 4301. Definitions

  In this chapter:
      (1) Compensation.--The term ``compensation'', for a fiscal year, 
    means the total amount of wages, salary, bonuses, and deferred 
    compensation for the fiscal year, whether paid, earned, or 
    otherwise accruing, as recorded in an employer's cost accounting 
    records for the fiscal year.
      (2) Covered contract.--The term ``covered contract'' means a 
    contract for an amount in excess of $500,000 that is entered into 
    by an executive agency, except that the term does not include a 
    fixed-price contract without cost incentives or any firm fixed-
    price contract for the purchase of commercial items.
      (3) Fiscal year.--The term ``fiscal year'' means a fiscal year 
    established by a contractor for accounting purposes.
      (4) Senior executive.--The term ``senior executive'', with 
    respect to a contractor, means the 5 most highly compensated 
    employees in management positions at each home office and each 
    segment of the contractor.

Sec. 4302. Adjustment of threshold amount of covered contract

  Effective on October 1 of each year that is divisible by 5, the 
amount set forth in section 4301(2) of this title shall be adjusted to 
the equivalent amount in constant fiscal year 1994 dollars. An adjusted 
amount that is not evenly divisible by $50,000 shall be rounded to the 
nearest multiple of $50,000. If an amount is evenly divisible by 
$25,000 but is not evenly divisible by $50,000, the amount shall be 
rounded to the next higher multiple of $50,000.

Sec. 4303. Effect of submission of unallowable costs

  (a) Indirect Cost That Violates Federal Acquisition Regulation Cost 
Principle.--An executive agency shall require that a covered contract 
provide that if the contractor submits to the executive agency a 
proposal for settlement of indirect costs incurred by the contractor 
for any period after those costs have been accrued and if that proposal 
includes the submission of a cost that is unallowable because the cost 
violates a cost principle in the Federal Acquisition Regulation or an 
executive agency supplement to the Federal Acquisition Regulation, the 
cost shall be disallowed.
  (b) Penalty for Violation of Cost Principle.--
      (1) Unallowable cost in proposal.--If the executive agency 
    determines that a cost submitted by a contractor in its proposal 
    for settlement is expressly unallowable under a cost principle 
    referred to in subsection (a) that defines the allowability of 
    specific selected costs, the executive agency shall assess a 
    penalty against the contractor in an amount equal to--
          (A) the amount of the disallowed cost allocated to covered 
        contracts for which a proposal for settlement of indirect costs 
        has been submitted; plus
          (B) interest (to be computed based on provisions in the 
        Federal Acquisition Regulation) to compensate the Federal 
        Government for the use of the amount which a contractor has 
        been paid in excess of the amount to which the contractor was 
        entitled.
      (2) Cost determined to be unallowable before proposal 
    submitted.--If the executive agency determines that a proposal for 
    settlement of indirect costs submitted by a contractor includes a 
    cost determined to be unallowable in the case of that contractor 
    before the submission of that proposal, the executive agency shall 
    assess a penalty against the contractor in an amount equal to 2 
    times the amount of the disallowed cost allocated to covered 
    contracts for which a proposal for settlement of indirect costs has 
    been submitted.
  (c) Waiver of Penalty.--The Federal Acquisition Regulation shall 
provide for a penalty under subsection (b) to be waived in the case of 
a contractor's proposal for settlement of indirect costs when--
      (1) the contractor withdraws the proposal before the formal 
    initiation of an audit of the proposal by the Federal Government 
    and resubmits a revised proposal;
      (2) the amount of unallowable costs subject to the penalty is 
    insignificant; or
      (3) the contractor demonstrates, to the contracting officer's 
    satisfaction, that--
          (A) it has established appropriate policies and personnel 
        training and an internal control and review system that provide 
        assurances that unallowable costs subject to penalties are 
        precluded from being included in the contractor's proposal for 
        settlement of indirect costs; and
          (B) the unallowable costs subject to the penalty were 
        inadvertently incorporated into the proposal.
  (d) Applicability of Contract Disputes Procedure.--An action of an 
executive agency under subsection (a) or (b)--
      (1) shall be considered a final decision for the purposes of 
    section 7103 of this title; and
      (2) is appealable in the manner provided in section 7104(a) of 
    this title.

Sec. 4304. Specific costs not allowable

  (a) Specific Costs.--The following costs are not allowable under a 
covered contract:
      (1) Costs of entertainment, including amusement, diversion, and 
    social activities, and any costs directly associated with those 
    costs (such as tickets to shows or sports events, meals, lodging, 
    rentals, transportation, and gratuities).
      (2) Costs incurred to influence (directly or indirectly) 
    legislative action on any matter pending before Congress, a State 
    legislature, or a legislative body of a political subdivision of a 
    State.
      (3) Costs incurred in defense of any civil or criminal fraud 
    proceeding or similar proceeding (including filing of any false 
    certification) brought by the Federal Government where the 
    contractor is found liable or had pleaded nolo contendere to a 
    charge of fraud or similar proceeding (including filing of a false 
    certification).
      (4) Payments of fines and penalties resulting from violations of, 
    or failure to comply with, Federal, State, local, or foreign laws 
    and regulations, except when incurred as a result of compliance 
    with specific terms and conditions of the contract or specific 
    written instructions from the contracting officer authorizing in 
    advance those payments in accordance with applicable provisions of 
    the Federal Acquisition Regulation.
      (5) Costs of membership in any social, dining, or country club or 
    organization.
      (6) Costs of alcoholic beverages.
      (7) Contributions or donations, regardless of the recipient.
      (8) Costs of advertising designed to promote the contractor or 
    its products.
      (9) Costs of promotional items and memorabilia, including models, 
    gifts, and souvenirs.
      (10) Costs for travel by commercial aircraft that exceed the 
    amount of the standard commercial fare.
      (11) Costs incurred in making any payment (commonly known as a 
    ``golden parachute payment'') that is--
          (A) in an amount in excess of the normal severance pay paid 
        by the contractor to an employee on termination of employment; 
        and
          (B) paid to the employee contingent on, and following, a 
        change in management control over, or ownership of, the 
        contractor or a substantial portion of the contractor's assets.
      (12) Costs of commercial insurance that protects against the 
    costs of the contractor for correction of the contractor's own 
    defects in materials or workmanship.
      (13) Costs of severance pay paid by the contractor to foreign 
    nationals employed by the contractor under a service contract 
    performed outside the United States, to the extent that the amount 
    of severance pay paid in any case exceeds the amount paid in the 
    industry involved under the customary or prevailing practice for 
    firms in that industry providing similar services in the United 
    States, as determined under the Federal Acquisition Regulation.
      (14) Costs of severance pay paid by the contractor to a foreign 
    national employed by the contractor under a service contract 
    performed in a foreign country if the termination of the employment 
    of the foreign national is the result of the closing of, or the 
    curtailment of activities at, a Federal Government facility in that 
    country at the request of the government of that country.
      (15) Costs incurred by a contractor in connection with any 
    criminal, civil, or administrative proceeding commenced by the 
    Federal Government or a State, to the extent provided in section 
    4310 of this title.
      (16) Costs of compensation of senior executives of contractors 
    for a fiscal year, regardless of the contract funding source, to 
    the extent that the compensation exceeds the benchmark compensation 
    amount determined applicable for the fiscal year by the 
    Administrator under section 1127 of this title.
  (b) Waiver of Severance Pay Restrictions for Foreign Nationals.--
      (1) Executive agency determination.--Pursuant to the Federal 
    Acquisition Regulation and subject to the availability of 
    appropriations, an executive agency, in awarding a covered 
    contract, may waive the application of paragraphs (13) and (14) of 
    subsection (a) to that contract if the executive agency determines 
    that--
          (A) the application of those provisions to that contract 
        would adversely affect the continuation of a program, project, 
        or activity that provides significant support services for 
        employees of the executive agency posted outside the United 
        States;
          (B) the contractor has taken (or has established plans to 
        take) appropriate actions within the contractor's control to 
        minimize the amount and number of incidents of the payment of 
        severance pay by the contractor to employees under the contract 
        who are foreign nationals; and
          (C) the payment of severance pay is necessary to comply with 
        a law that is generally applicable to a significant number of 
        businesses in the country in which the foreign national 
        receiving the payment performed services under the contract or 
        is necessary to comply with a collective bargaining agreement.
      (2) Solicitation to include statement about waiver.--An executive 
    agency shall include in the solicitation for a covered contract a 
    statement indicating--
          (A) that a waiver has been granted under paragraph (1) for 
        the contract; or
          (B) whether the executive agency will consider granting a 
        waiver and, if the executive agency will consider granting a 
        waiver, the criteria to be used in granting the waiver.
      (3) Determination to be made before contract awarded.--An 
    executive agency shall make the final determination whether to 
    grant a waiver under paragraph (1) with respect to a covered 
    contract before award of the contract.
  (c) Establishment of Definitions, Exclusions, Limitations, and 
Qualifications.--The provisions of the Federal Acquisition Regulation 
implementing this chapter may establish appropriate definitions, 
exclusions, limitations, and qualifications. A submission by a 
contractor of costs that are incurred by the contractor and that are 
claimed to be allowable under Department of Energy management and 
operating contracts shall be considered a proposal for settlement of 
indirect costs incurred by the contractor for any period after those 
costs have been accrued.

Sec. 4305. Required regulations

  (a) In General.--The Federal Acquisition Regulation shall contain 
provisions on the allowability of contractor costs. Those provisions 
shall define in detail and in specific terms the costs that are 
unallowable, in whole or in part, under covered contracts.
  (b) Specific Items.--The regulations shall, at a minimum, clarify the 
cost principles applicable to contractor costs of the following:
      (1) Air shows.
      (2) Membership in civic, community, and professional 
    organizations.
      (3) Recruitment.
      (4) Employee morale and welfare.
      (5) Actions to influence (directly or indirectly) executive 
    branch action on regulatory and contract matters (other than costs 
    incurred in regard to contract proposals pursuant to solicited or 
    unsolicited bids).
      (6) Community relations.
      (7) Dining facilities.
      (8) Professional and consulting services, including legal 
    services.
      (9) Compensation.
      (10) Selling and marketing.
      (11) Travel.
      (12) Public relations.
      (13) Hotel and meal expenses.
      (14) Expense of corporate aircraft.
      (15) Company-furnished automobiles.
      (16) Advertising.
      (17) Conventions.
  (c) Additional Requirements.--
      (1) When questioned costs may be resolved.--The Federal 
    Acquisition Regulation shall require that a contracting officer not 
    resolve any questioned costs until the contracting officer has 
    obtained--
          (A) adequate documentation of those costs; and
          (B) the opinion of the contract auditor on the allowability 
        of those costs.
      (2) Presence of contract auditor.--The Federal Acquisition 
    Regulation shall provide that, to the maximum extent practicable, a 
    contract auditor be present at any negotiation or meeting with the 
    contractor regarding a determination of the allowability of 
    indirect costs of the contractor.
      (3) Settlement to reflect amount of individual questioned 
    costs.--The Federal Acquisition Regulation shall require that all 
    categories of costs designated in the report of a contract auditor 
    as questioned with respect to a proposal for settlement be resolved 
    in a manner so that the amount of the individual questioned costs 
    that are paid will be reflected in the settlement.

Sec. 4306. Applicability of regulations to subcontractors

  The regulations referred to in sections 4304 and 4305(a) and (b) of 
this title shall require prime contractors of a covered contract, to 
the maximum extent practicable, to apply the provisions of those 
regulations to all subcontractors of the covered contract.

Sec. 4307. Contractor certification

  (a) Content and Form.--A proposal for settlement of indirect costs 
applicable to a covered contract shall include a certification by an 
official of the contractor that, to the best of the certifying 
official's knowledge and belief, all indirect costs included in the 
proposal are allowable. The certification shall be in a form prescribed 
in the Federal Acquisition Regulation.
  (b) Waiver.--An executive agency may, in an exceptional case, waive 
the requirement for certification under subsection (a) in the case of a 
contract if the agency--
      (1) determines that it would be in the interest of the Federal 
    Government to waive the certification; and
      (2) states in writing the reasons for the determination and makes 
    the determination available to the public.

Sec. 4308. Penalties for submission of cost known to be unallowable

  The submission to an executive agency of a proposal for settlement of 
costs for any period after those costs have been accrued that includes 
a cost that is expressly specified by statute or regulation as being 
unallowable, with the knowledge that the cost is unallowable, is 
subject to section 287 of title 18 and section 3729 of title 31.

Sec. 4309. Burden of proof on contractor

  In a proceeding before a board of contract appeals, the United States 
Court of Federal Claims, or any other Federal court in which the 
reasonableness of indirect costs for which a contractor seeks 
reimbursement from the Federal Government is in issue, the burden of 
proof is on the contractor to establish that those costs are 
reasonable.

Sec. 4310. Proceeding costs not allowable

  (a) Definitions.--In this section:
      (1) Costs.--The term ``costs'', with respect to a proceeding, 
    means all costs incurred by a contractor, whether before or after 
    the commencement of the proceeding, including--
          (A) administrative and clerical expenses;
          (B) the cost of legal services, including legal services 
        performed by an employee of the contractor;
          (C) the cost of the services of accountants and consultants 
        retained by the contractor; and
          (D) the pay of directors, officers, and employees of the 
        contractor for time devoted by those directors, officers, and 
        employees to the proceeding.
      (2) Penalty.--The term ``penalty'' does not include restitution, 
    reimbursement, or compensatory damages.
      (3) Proceeding.--The term ``proceeding'' includes an 
    investigation.
  (b) In General.--Except as otherwise provided in this section, costs 
incurred by a contractor in connection with a criminal, civil, or 
administrative proceeding commenced by the Federal Government or a 
State are not allowable as reimbursable costs under a covered contract 
if the proceeding--
      (1) relates to a violation of, or failure to comply with, a 
    Federal or State statute or regulation; and
      (2) results in a disposition described in subsection (c).
  (c) Covered Dispositions.--A disposition referred to in subsection 
(b)(2) is any of the following:
      (1) In a criminal proceeding, a conviction (including a 
    conviction pursuant to a plea of nolo contendere) by reason of the 
    violation or failure referred to in subsection (b).
      (2) In a civil or administrative proceeding involving an 
    allegation of fraud or similar misconduct, a determination of 
    contractor liability on the basis of the violation or failure 
    referred to in subsection (b).
      (3) In any civil or administrative proceeding, the imposition of 
    a monetary penalty by reason of the violation or failure referred 
    to in subsection (b).
      (4) A final decision to do any of the following, by reason of the 
    violation or failure referred to in subsection (b):
          (A) Debar or suspend the contractor.
          (B) Rescind or void the contract.
          (C) Terminate the contract for default.
      (5) A disposition of the proceeding by consent or compromise if 
    the disposition could have resulted in a disposition described in 
    paragraph (1), (2), (3), or (4).
  (d) Costs Allowed by Settlement Agreement in Proceeding Commenced by 
Federal Government.--In the case of a proceeding referred to in 
subsection (b) that is commenced by the Federal Government and is 
resolved by consent or compromise pursuant to an agreement entered into 
by a contractor and the Federal Government, the costs incurred by the 
contractor in connection with the proceeding that are otherwise not 
allowable as reimbursable costs under subsection (b) may be allowed to 
the extent specifically provided in that agreement.
  (e) Costs Specifically Authorized by Executive Agency in Proceeding 
Commenced by State.--In the case of a proceeding referred to in 
subsection (b) that is commenced by a State, the executive agency that 
awarded the covered contract involved in the proceeding may allow the 
costs incurred by the contractor in connection with the proceeding as 
reimbursable costs if the executive agency determines, in accordance 
with the Federal Acquisition Regulation, that the costs were incurred 
as a result of--
      (1) a specific term or condition of the contract; or
      (2) specific written instructions of the executive agency.
  (f) Other Allowable Costs.--
      (1) In general.--Except as provided in paragraph (3), costs 
    incurred by a contractor in connection with a criminal, civil, or 
    administrative proceeding commenced by the Federal Government or a 
    State in connection with a covered contract may be allowed as 
    reimbursable costs under the contract if the costs are not 
    disallowable under subsection (b), but only to the extent provided 
    in paragraph (2).
      (2) Amount of allowable costs.--
          (A) Maximum amount allowed.--The amount of the costs 
        allowable under paragraph (1) in any case may not exceed the 
        amount equal to 80 percent of the amount of the costs incurred, 
        to the extent that the costs are determined to be otherwise 
        allowable and allocable under the Federal Acquisition 
        Regulation.
          (B) Content of regulations.--Regulations issued for the 
        purpose of subparagraph (A) shall provide for appropriate 
        consideration of the complexity of procurement litigation, 
        generally accepted principles governing the award of legal fees 
        in civil actions involving the Federal Government as a party, 
        and other factors as may be appropriate.
      (3) When otherwise allowable costs are not allowable.--In the 
    case of a proceeding referred to in paragraph (1), contractor costs 
    otherwise allowable as reimbursable costs under this subsection are 
    not allowable if--
          (A) the proceeding involves the same contractor misconduct 
        alleged as the basis of another criminal, civil, or 
        administrative proceeding; and
          (B) the costs of the other proceeding are not allowable under 
        subsection (b).

                     CHAPTER 45--CONTRACT FINANCING

Sec.
4501.  Authority of executive agency.
4502.  Payment.
4503.  Security for advance payments.
4504.  Conditions for progress payments.
4505.  Payments for commercial items.
4506.  Action in case of fraud.

Sec. 4501. Authority of executive agency

  An executive agency may--
      (1) make advance, partial, progress or other payments under 
    contracts for property or services made by the agency; and
      (2) insert in solicitations for procurement of property or 
    services a provision limiting to small business concerns advance or 
    progress payments.

Sec. 4502. Payment

  (a) Basis for Payment.--When practicable, payments under section 4501 
of this title shall be made on any of the following bases:
      (1) Performance measured by objective, quantifiable methods such 
    as delivery of acceptable items, work measurement, or statistical 
    process controls.
      (2) Accomplishment of events defined in the program management 
    plan.
      (3) Other quantifiable measures of results.
  (b) Payment Amount.--Payments made under section 4501 of this title 
may not exceed the unpaid contract price.

Sec. 4503. Security for advance payments

  Advance payments under section 4501 of this title may be made only on 
adequate security and a determination by the agency head that to do so 
would be in the public interest. The security may be in the form of a 
lien in favor of the Federal Government on the property contracted for, 
on the balance in an account in which the payments are deposited, and 
on such of the property acquired for performance of the contract as the 
parties may agree. This lien shall be paramount to all other liens and 
is effective immediately upon the first advancement of funds without 
filing, notice, or any other action by the Federal Government.

Sec. 4504. Conditions for progress payments

  (a) Payment Commensurate With Work.--The executive agency shall 
ensure that a payment for work in progress (including materials, labor, 
and other items) under a contract of an executive agency that provides 
for those payments is commensurate with the work accomplished that 
meets standards established under the contract. The contractor shall 
provide information and evidence the executive agency determines is 
necessary to permit the executive agency to carry out this subsection.
  (b) Limitation.--The executive agency shall ensure that progress 
payments referred to in subsection (a) are not made for more than 80 
percent of the work accomplished under the contract as long as the 
executive agency has not made the contractual terms, specifications, 
and price definite.
  (c) Application.--This section applies to a contract in an amount 
greater than $25,000.

Sec. 4505. Payments for commercial items

  (a) Terms and Conditions for Payments.--Payments under section 4501 
of this title for commercial items may be made under terms and 
conditions that the head of the executive agency determines are 
appropriate or customary in the commercial marketplace and are in the 
best interests of the Federal Government.
  (b) Security for Payments.--The head of the executive agency shall 
obtain adequate security for the payments. If the security is in the 
form of a lien in favor of the Federal Government, the lien is 
paramount to all other liens and is effective immediately on the first 
payment, without filing, notice, or other action by the Federal 
Government.
  (c) Limitation on Advance Payments.--Advance payments made under 
section 4501 of this title for commercial items may include payments, 
in a total amount not more than 15 percent of the contract price, in 
advance of any performance of work under the contract.
  (d) Nonapplication of Certain Conditions.--The conditions of sections 
4503 and 4504 of this title need not be applied if they would be 
inconsistent, as determined by the head of the executive agency, with 
commercial terms and conditions pursuant to this section.

Sec. 4506. Action in case of fraud

  (a) Definition.--In this section, the term ``remedy coordination 
official'', with respect to an executive agency, means the individual 
or entity in that executive agency who coordinates within that 
executive agency the administration of criminal, civil, administrative, 
and contractual remedies resulting from investigations of fraud or 
corruption related to procurement activities.
  (b) Recommendation To Reduce or Suspend Payments.--In any case in 
which the remedy coordination official of an executive agency finds 
that there is substantial evidence that the request of a contractor for 
advance, partial, or progress payment under a contract awarded by that 
executive agency is based on fraud, the remedy coordination official 
shall recommend that the executive agency reduce or suspend further 
payments to that contractor.
  (c) Reduction or Suspension of Payments.--The head of an executive 
agency receiving a recommendation under subsection (b) in the case of a 
contractor's request for payment under a contract shall determine 
whether there is substantial evidence that the request is based on 
fraud. On making an affirmative determination, the head of the 
executive agency may reduce or suspend further payments to the 
contractor under the contract.
  (d) Extent of Reduction or Suspension.--The extent of any reduction 
or suspension of payments by an executive agency under subsection (c) 
on the basis of fraud shall be reasonably commensurate with the 
anticipated loss to the Federal Government resulting from the fraud.
  (e) Written Justification.--A written justification for each decision 
of the head of an executive agency whether to reduce or suspend 
payments under subsection (c), and for each recommendation received by 
the executive agency in connection with the decision, shall be prepared 
and be retained in the files of the executive agency.
  (f) Notice.--The head of each executive agency shall prescribe 
procedures to ensure that, before the head of the executive agency 
decides to reduce or suspend payments in the case of a contractor under 
subsection (c), the contractor is afforded notice of the proposed 
reduction or suspension and an opportunity to submit matters to the 
executive agency in response to the proposed reduction or suspension.
  (g) Review.--Not later than 180 days after the date on which the head 
of an executive agency reduces or suspends payments to a contractor 
under subsection (c), the remedy coordination official of the executive 
agency shall--
      (1) review the determination of fraud on which the reduction or 
    suspension is based; and
      (2) transmit a recommendation to the head of the executive agency 
    whether the suspension or reduction should continue.
  (h) Report.--The head of each executive agency who receives 
recommendations made by the remedy coordination official of the 
executive agency to reduce or suspend payments under subsection (c) 
during a fiscal year shall prepare for that year a report that contains 
the recommendations, the actions taken on the recommendations and the 
reasons for those actions, and an assessment of the effects of those 
actions on the Federal Government. The report shall be available to any 
Member of Congress on request.
  (i) Restriction on Delegation.--The head of an executive agency may 
not delegate responsibilities under this section to an individual in a 
position below level IV of the Executive Schedule.

                       CHAPTER 47--MISCELLANEOUS

Sec.
4701.  Determinations and decisions.
4702.  Prohibition on release of contractor proposals.
4703.  Validation of proprietary data restrictions.
4704.  Prohibition of contractors limiting subcontractor sales directly 
          to Federal Government.
4705.  Protection of contractor employees from reprisal for disclosure 
          of certain information.
4706.  Examination of facilities and records of contractor.
4707.  Remission of liquidated damages.
4708.  Payment of reimbursable indirect costs in cost-type research and 
          development contracts with educational institutions.
4709.  Implementation of electronic commerce capability.
4710.  Limitations on tiering of subcontractors.
4711.  Linking of award and incentive fees to acquisition outcomes.

Sec. 4701. Determinations and decisions

  (a) Individual or Class Determinations and Decisions Authorized.--
      (1) In general.--Determinations and decisions required to be made 
    under this division by the head of an executive agency or provided 
    in this division or chapters 1 to 11 of title 40 to be made by the 
    Administrator of General Services or other agency head may be made 
    for an individual purchase or contract or, except for 
    determinations or decisions made under sections 3105, 3301, 3303 to 
    3305, 3306(a)-(e), and 3308, chapter 37, and section 4702 of this 
    title or to the extent expressly prohibited by another law, for a 
    class of purchases or contracts.
      (2) Delegation.--Except as provided in section 3304(a)(7) of this 
    title, and except as provided in section 121(d)(1) and (2) of title 
    40 with respect to the Administrator of General Services, the 
    agency head, in the discretion and subject to the direction of the 
    agency head, may delegate powers provided by this division or 
    chapters 1 to 11 of title 40, including the making of 
    determinations and decisions described in paragraph (1), to other 
    officers or officials of the agency.
      (3) Finality.--The determinations and decisions are final.
  (b) Written Findings.--
      (1) Basis for certain determinations.--Each determination or 
    decision under section 3901, 3905, 4503, or 4706(d)(2)(B) of this 
    title shall be based on a written finding by the individual making 
    the determination or decision. A finding under section 4503 or 
    4706(d)(2)(B) shall set out facts and circumstances that support 
    the determination or decision.
      (2) Finality.--Each finding referred to in paragraph (1) is 
    final.
      (3) Maintaining copies of findings.--The head of an executive 
    agency shall maintain for a period of not less than 6 years a copy 
    of each finding referred to in paragraph (1) that is made by an 
    individual in that executive agency. The period begins on the date 
    of the determination or decision to which the finding relates.

Sec. 4702. Prohibition on release of contractor proposals

  (a) Definition.--In this section, the term ``proposal'' means a 
proposal, including a technical, management, or cost proposal, 
submitted by a contractor in response to the requirements of a 
solicitation for a competitive proposal.
  (b) Prohibition.--A proposal in the possession or control of an 
executive agency may not be made available to any person under section 
552 of title 5.
  (c) Nonapplication.--Subsection (b) does not apply to a proposal that 
is set forth or incorporated by reference in a contract entered into 
between the agency and the contractor that submitted the proposal.

Sec. 4703. Validation of proprietary data restrictions

  (a) Contract That Provides for Delivery of Technical Data.--A 
contract for property or services entered into by an executive agency 
that provides for the delivery of technical data shall provide that--
      (1) a contractor or subcontractor at any tier shall be prepared 
    to furnish to the contracting officer a written justification for 
    any restriction the contractor or subcontractor asserts on the 
    right of the Federal Government to use the data; and
      (2) the contracting officer may review the validity of a 
    restriction the contractor or subcontractor asserts under the 
    contract on the right of the Federal Government to use technical 
    data furnished to the Federal Government under the contract if the 
    contracting officer determines that reasonable grounds exist to 
    question the current validity of the asserted restriction and that 
    the continued adherence to the asserted restriction by the Federal 
    Government would make it impracticable to procure the item 
    competitively at a later time.
  (b) Challenge of Restriction.--If after a review the contracting 
officer determines that a challenge to the asserted restriction is 
warranted, the contracting officer shall provide written notice to the 
contractor or subcontractor asserting the restriction. The notice shall 
state--
      (1) the grounds for challenging the asserted restriction; and
      (2) the requirement for a response within 60 days justifying the 
    current validity of the asserted restriction.
  (c) Additional Time for Responses.--If a contractor or subcontractor 
asserting a restriction subject to this section submits to the 
contracting officer a written request showing the need for additional 
time to comply with the requirement to justify the current validity of 
the asserted restriction, the contracting officer shall provide 
appropriate additional time to adequately permit the justification to 
be submitted.
  (d) Multiple Challenges.--If a party asserting a restriction receives 
notices of challenges to restrictions on technical data from more than 
one contracting officer, and notifies each contracting officer of the 
existence of more than one challenge, the contracting officer 
initiating the earliest challenge, after consultation with the party 
asserting the restriction and the other contracting officers, shall 
formulate a schedule of responses to each of the challenges that will 
afford the party asserting the restriction with an equitable 
opportunity to respond to each challenge.
  (e) Decision on Validity of Asserted Restriction.--
      (1) No response submitted.--The contracting officer shall issue a 
    decision pertaining to the validity of the asserted restriction if 
    the contractor or subcontractor does not submit a response under 
    subsection (b).
      (2) Response submitted.--Within 60 days of receipt of a 
    justification submitted in response to the notice provided pursuant 
    to subsection (b), a contracting officer shall issue a decision or 
    notify the party asserting the restriction of the time within which 
    a decision will be issued.
  (f) Claim Deemed Claim Within Chapter 71.--A claim pertaining to the 
validity of the asserted restriction that is submitted in writing to a 
contracting officer by a contractor or subcontractor at any tier is 
deemed to be a claim within the meaning of chapter 71 of this title.
  (g) Final Disposition of Challenge.--
      (1) Challenge is sustained.--If the contracting officer's 
    challenge to the restriction on the right of the Federal Government 
    to use technical data is sustained on final disposition--
          (A) the restriction is cancelled; and
          (B) if the asserted restriction is found not to be 
        substantially justified, the contractor or subcontractor, as 
        appropriate, is liable to the Federal Government for payment of 
        the cost to the Federal Government of reviewing the asserted 
        restriction and the fees and other expenses (as defined in 
        section 2412(d)(2)(A) of title 28) incurred by the Federal 
        Government in challenging the asserted restriction, unless 
        special circumstances would make the payment unjust.
      (2) Challenge not sustained.--If the contracting officer's 
    challenge to the restriction on the right of the Federal Government 
    to use technical data is not sustained on final disposition, the 
    Federal Government--
          (A) continues to be bound by the restriction; and
          (B) is liable for payment to the party asserting the 
        restriction for fees and other expenses (as defined in section 
        2412(d)(2)(A) of title 28) incurred by the party asserting the 
        restriction in defending the asserted restriction if the 
        challenge by the Federal Government is found not to be made in 
        good faith.

Sec. 4704. Prohibition of contractors limiting subcontractor sales 
            directly to Federal Government

  (a) Contract Restrictions.--Each contract for the purchase of 
property or services made by an executive agency shall provide that the 
contractor will not--
      (1) enter into an agreement with a subcontractor under the 
    contract that has the effect of unreasonably restricting sales by 
    the subcontractor directly to the Federal Government of any item or 
    process (including computer software) made or furnished by the 
    subcontractor under the contract (or any follow-on production 
    contract); or
      (2) otherwise act to restrict unreasonably the ability of a 
    subcontractor to make sales described in paragraph (1) to the 
    Federal Government.
  (b) Rights Under Law Preserved.--This section does not prohibit a 
contractor from asserting rights it otherwise has under law.
  (c) Inapplicability to Certain Contracts.--This section does not 
apply to a contract for an amount that is not greater than the 
simplified acquisition threshold.
  (d) Inapplicability When Government Treated Similarly to Other 
Purchasers.--An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under the contract 
that restricts sales by the subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict 
sales by that subcontractor to the Federal Government in violation of 
the provision included in the contract pursuant to subsection (a) if 
the agreement does not result in the Federal Government being treated 
differently with regard to the restriction than any other prospective 
purchaser of the commercial items from that subcontractor.

Sec. 4705. Protection of contractor employees from reprisal for 
            disclosure of certain information

  (a) Definitions.--In this section:
      (1) Contract.--The term ``contract'' means a contract awarded by 
    the head of an executive agency.
      (2) Contractor.--The term ``contractor'' means a person awarded a 
    contract with an executive agency.
      (3) Inspector general.--The term ``Inspector General'' means an 
    Inspector General appointed under the Inspector General Act of 1978 
    (5 U.S.C. App.).
  (b) Prohibition of Reprisals.--An employee of a contractor may not be 
discharged, demoted, or otherwise discriminated against as a reprisal 
for disclosing to a Member of Congress or an authorized official of an 
executive agency or the Department of Justice information relating to a 
substantial violation of law related to a contract (including the 
competition for, or negotiation of, a contract).
  (c) Investigation of Complaints.--An individual who believes that the 
individual has been subjected to a reprisal prohibited by subsection 
(b) may submit a complaint to the Inspector General of the executive 
agency. Unless the Inspector General determines that the complaint is 
frivolous, the Inspector General shall investigate the complaint and, 
on completion of the investigation, submit a report of the findings of 
the investigation to the individual, the contractor concerned, and the 
head of the agency. If the executive agency does not have an Inspector 
General, the duties of the Inspector General under this section shall 
be performed by an official designated by the head of the executive 
agency.
  (d) Remedy and Enforcement Authority.--
      (1) Actions contractor may be ordered to take.--If the head of an 
    executive agency determines that a contractor has subjected an 
    individual to a reprisal prohibited by subsection (b), the head of 
    the executive agency may take one or more of the following actions:
          (A) Abatement.--Order the contractor to take affirmative 
        action to abate the reprisal.
          (B) Reinstatement.--Order the contractor to reinstate the 
        individual to the position that the individual held before the 
        reprisal, together with the compensation (including back pay), 
        employment benefits, and other terms and conditions of 
        employment that would apply to the individual in that position 
        if the reprisal had not been taken.
          (C) Payment.--Order the contractor to pay the complainant an 
        amount equal to the aggregate amount of all costs and expenses 
        (including attorneys' fees and expert witnesses' fees) that the 
        complainant reasonably incurred for, or in connection with, 
        bringing the complaint regarding the reprisal, as determined by 
        the head of the executive agency.
      (2) Enforcement order.--When a contractor fails to comply with an 
    order issued under paragraph (1), the head of the executive agency 
    shall file an action for enforcement of the order in the United 
    States district court for a district in which the reprisal was 
    found to have occurred. In an action brought under this paragraph, 
    the court may grant appropriate relief, including injunctive relief 
    and compensatory and exemplary damages.
      (3) Review of enforcement order.--A person adversely affected or 
    aggrieved by an order issued under paragraph (1) may obtain review 
    of the order's conformance with this subsection, and regulations 
    issued to carry out this section, in the United States court of 
    appeals for a circuit in which the reprisal is alleged in the order 
    to have occurred. A petition seeking review must be filed no more 
    than 60 days after the head of the agency issues the order. Review 
    shall conform to chapter 7 of title 5.
  (e) Scope of Section.--This section does not--
      (1) authorize the discharge of, demotion of, or discrimination 
    against an employee for a disclosure other than a disclosure 
    protected by subsection (b); or
      (2) modify or derogate from a right or remedy otherwise available 
    to the employee.

Sec. 4706. Examination of facilities and records of contractor

  (a) Definition.--In this section, the term ``records'' includes 
books, documents, accounting procedures and practices, and other data, 
regardless of type and regardless of whether the items are in written 
form, in the form of computer data, or in any other form.
  (b) Agency Authority.--
      (1) Inspection of plant and audit of records.--The head of an 
    executive agency, acting through an authorized representative, may 
    inspect the plant and audit the records of--
          (A) a contractor performing a cost-reimbursement, incentive, 
        time-and-materials, labor-hour, or price-redeterminable 
        contract, or any combination of those contracts, the executive 
        agency makes under this division; and
          (B) a subcontractor performing a cost-reimbursement, 
        incentive, time-and-materials, labor-hour, or price-
        redeterminable subcontract, or any combination of those 
        subcontracts, under a contract referred to in subparagraph (A).
      (2) Examination of records.--The head of an executive agency, 
    acting through an authorized representative, may, for the purpose 
    of evaluating the accuracy, completeness, and currency of certified 
    cost or pricing data required to be submitted pursuant to chapter 
    35 of this title with respect to a contract or subcontract, examine 
    all records of the contractor or subcontractor related to--
          (A) the proposal for the contract or subcontract;
          (B) the discussions conducted on the proposal;
          (C) pricing of the contract or subcontract; or
          (D) performance of the contract or subcontract.
  (c) Subpoena Power.--
      (1) Authority to require the production of records.--The 
    Inspector General of an executive agency appointed under section 3 
    or 8G of the Inspector General Act of 1978 (5 U.S.C. App.) or, on 
    request of the head of an executive agency, the Director of the 
    Defense Contract Audit Agency (or any successor agency) of the 
    Department of Defense or the Inspector General of the General 
    Services Administration may require by subpoena the production of 
    records of a contractor, access to which is provided for that 
    executive agency by subsection (b).
      (2) Enforcement of subpoena.--A subpoena under paragraph (1), in 
    the case of contumacy or refusal to obey, is enforceable by order 
    of an appropriate United States district court.
      (3) Authority not delegable.--The authority provided by paragraph 
    (1) may not be delegated.
      (4) Report.--In the year following a year in which authority 
    provided in paragraph (1) is exercised for an executive agency, the 
    head of the executive agency shall submit to the Committee on 
    Homeland Security and Governmental Affairs of the Senate and the 
    Committee on Oversight and Government Reform of the House of 
    Representatives a report on the exercise of the authority during 
    the preceding year and the reasons why the authority was exercised 
    in any instance.
  (d) Authority of Comptroller General.--
      (1) In general.--Except as provided in paragraph (2), each 
    contract awarded after using procedures other than sealed bid 
    procedures shall provide that the Comptroller General and 
    representatives of the Comptroller General may examine records of 
    the contractor, or any of its subcontractors, that directly pertain 
    to, and involve transactions relating to, the contract or 
    subcontract and to interview any current employee regarding the 
    transactions.
      (2) Exception for foreign contractor or subcontractor.--Paragraph 
    (1) does not apply to a contract or subcontract with a foreign 
    contractor or foreign subcontractor if the executive agency 
    concerned determines, with the concurrence of the Comptroller 
    General or the designee of the Comptroller General, that applying 
    paragraph (1) to the contract or subcontract would not be in the 
    public interest. The concurrence of the Comptroller General or the 
    designee is not required when--
          (A) the contractor or subcontractor is--
              (i) the government of a foreign country or an agency of 
            that government; or
              (ii) precluded by the laws of the country involved from 
            making its records available for examination; and
          (B) the executive agency determines, after taking into 
        account the price and availability of the property and services 
        from United States sources, that the public interest would be 
        best served by not applying paragraph (1).
      (3) Additional records not required.--Paragraph (1) does not 
    require a contractor or subcontractor to create or maintain a 
    record that the contractor or subcontractor does not maintain in 
    the ordinary course of business or pursuant to another law.
  (e) Limitation on Audits Relating to Indirect Costs.--An executive 
agency may not perform an audit of indirect costs under a contract, 
subcontract, or modification before or after entering into the 
contract, subcontract, or modification when the contracting officer 
determines that the objectives of the audit can reasonably be met by 
accepting the results of an audit that was conducted by another 
department or agency of the Federal Government within one year 
preceding the date of the contracting officer's determination.
  (f) Expiration of Authority.--The authority of an executive agency 
under subsection (b) and the authority of the Comptroller General under 
subsection (d) shall expire 3 years after final payment under the 
contract or subcontract.
  (g) Inapplicability to Certain Contracts.--This section does not 
apply to the following contracts:
      (1) Contracts for utility services at rates not exceeding those 
    established to apply uniformly to the public, plus any applicable 
    reasonable connection charge.
      (2) A contract or subcontract that is not greater than the 
    simplified acquisition threshold.
  (h) Electronic Form Allowed.--This section does not preclude a 
contractor from duplicating or storing original records in electronic 
form.
  (i) Original Records Not Required.--An executive agency shall not 
require a contractor or subcontractor to provide original records in an 
audit carried out pursuant to this section if the contractor or 
subcontractor provides photographic or electronic images of the 
original records and meets the following requirements:
      (1) Preservation procedures established.--The contractor or 
    subcontractor has established procedures to ensure that the imaging 
    process preserves the integrity, reliability, and security of the 
    original records.
      (2) Indexing system maintained.--The contractor or subcontractor 
    maintains an effective indexing system to permit timely and 
    convenient access to the imaged records.
      (3) Original records retained.--The contractor or subcontractor 
    retains the original records for a minimum of one year after 
    imaging to permit periodic validation of the imaging systems.

Sec. 4707. Remission of liquidated damages

  When a contract made on behalf of the Federal Government by the head 
of a Federal agency, or by an authorized officer of the agency, 
includes a provision for liquidated damages for delay, the Secretary of 
the Treasury on recommendation of the head of the agency may remit any 
part of the damages as the Secretary of the Treasury believes is just 
and equitable.

Sec. 4708. Payment of reimbursable indirect costs in cost-type research 
            and development contracts with educational institutions

  A cost-type research and development contract (including a grant) 
with a university, college, or other educational institution may 
provide for payment of reimbursable indirect costs on the basis of 
predetermined fixed-percentage rates applied to the total of the 
reimbursable direct costs incurred or to an element of the total of the 
reimbursable direct costs incurred.

Sec. 4709. Implementation of electronic commerce capability

  (a) Role of Head of Executive Agency.--The head of each executive 
agency shall implement the electronic commerce capability required by 
section 2301 of this title. In implementing the capability, the head of 
an executive agency shall consult with the Administrator.
  (b) Program Manager.--The head of each executive agency shall 
designate a program manager to implement the electronic commerce 
capability for the agency. The program manager reports directly to an 
official at a level not lower than the senior procurement executive 
designated for the agency under section 1702(c) of this title.

Sec. 4710. Limitations on tiering of subcontractors

  (a) Definition.--In this section, the term ``executive agency'' has 
the same meaning given in section 133 of this title.
  (b) Regulations.--For executive agencies other than the Department of 
Defense, the Federal Acquisition Regulation shall--
      (1) require contractors to minimize the excessive use of 
    subcontractors, or of tiers of subcontractors, that add no or 
    negligible value; and
      (2) ensure that neither a contractor nor a subcontractor receives 
    indirect costs or profit on work performed by a lower-tier 
    subcontractor to which the higher-tier contractor or subcontractor 
    adds no or negligible value (but not to limit charges for indirect 
    costs and profit based on the direct costs of managing lower-tier 
    subcontracts).
  (c) Covered Contracts.--This section applies to any cost-
reimbursement type contract or task or delivery order in an amount 
greater than the simplified acquisition threshold (as defined by 
section 134 of this title).
  (d) Rule of Construction.--Nothing in this section shall be construed 
as limiting the ability of the Department of Defense to implement more 
restrictive limitations on the tiering of subcontractors.
  (e) Applicability.--The Department of Defense shall continue to be 
subject to guidance on limitations on tiering of subcontractors issued 
by the Department of Defense pursuant to section 852 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-364, 10 U.S.C. 2324 note).

Sec. 4711. Linking of award and incentive fees to acquisition outcomes

  (a) Definition.--In this section, the term ``executive agency'' has 
the same meaning given in section 133 of this title.
  (b) Guidance for Executive Agencies on Linking of Award and Incentive 
Fees to Acquisition Outcomes.--The Federal Acquisition Regulation shall 
provide executive agencies other than the Department of Defense with 
instructions, including definitions, on the appropriate use of award 
and incentive fees in Federal acquisition programs.
  (c) Elements.--The regulations under subsection (b) shall--
      (1) ensure that all new contracts using award fees link the fees 
    to acquisition outcomes (which shall be defined in terms of program 
    cost, schedule, and performance);
      (2) establish standards for identifying the appropriate level of 
    officials authorized to approve the use of award and incentive fees 
    in new contracts;
      (3) provide guidance on the circumstances in which contractor 
    performance may be judged to be ``excellent'' or ``superior'' and 
    the percentage of the available award fee which contractors should 
    be paid for the performance;
      (4) establish standards for determining the percentage of the 
    available award fee, if any, which contractors should be paid for 
    performance that is judged to be ``acceptable'', ``average'', 
    ``expected'', ``good'', or ``satisfactory'';
      (5) ensure that no award fee may be paid for contractor 
    performance that is judged to be below satisfactory performance or 
    performance that does not meet the basic requirements of the 
    contract;
      (6) provide specific direction on the circumstances, if any, in 
    which it may be appropriate to roll over award fees that are not 
    earned in one award fee period to a subsequent award fee period or 
    periods;
      (7) ensure consistent use of guidelines and definitions relating 
    to award and incentive fees across the Federal Government;
      (8) ensure that each executive agency--
          (A) collects relevant data on award and incentive fees paid 
        to contractors; and
          (B) has mechanisms in place to evaluate the data on a regular 
        basis;
      (9) include performance measures to evaluate the effectiveness of 
    award and incentive fees as a tool for improving contractor 
    performance and achieving desired program outcomes; and
      (10) provide mechanisms for sharing proven incentive strategies 
    for the acquisition of different types of products and services 
    among contracting and program management officials.
  (d) Guidance for Department of Defense.--The Department of Defense 
shall continue to be subject to guidance on award and incentive fees 
issued by the Secretary of Defense pursuant to section 814 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364, 10 U.S.C. 2302 note).

         Subtitle II--Other Advertising and Contract Provisions

Chapter                                                             Sec.

Advertising.........................................................6101
General Contract Provisions.........................................6301
Contracts for Materials, Supplies, Articles, and Equipment Exceeding 
$10,000.............................................................6501
Service Contract Labor Standards....................................6701

                        CHAPTER 61--ADVERTISING

Sec.
6101.  Advertising requirement for Federal Government purchases and 
          sales.
6102.  Exceptions from advertising requirement.
6103.  Opening of bids.

Sec. 6101. Advertising requirement for Federal Government purchases and 
            sales

  (a) Definitions.--In this section--
      (1) Appropriation.--The term ``appropriation'' includes amounts 
    made available by legislation under section 9104 of title 31.
      (2) Federal government.--The term ``Federal Government'' includes 
    the government of the District of Columbia.
  (b) Purchases.--
      (1) In general.--Unless otherwise provided in the appropriation 
    concerned or other law, purchases and contracts for supplies or 
    services for the Federal Government may be made or entered into 
    only after advertising for proposals for a sufficient time.
      (2) Limitations on applicability.--Paragraph (1) does not apply 
    when--
          (A) the amount involved in any one case does not exceed 
        $25,000;
          (B) public exigencies require the immediate delivery of 
        articles or performance of services;
          (C) only one source of supply is available and the Federal 
        Government purchasing or contracting officer so certifies; or
          (D) services are required to be performed by a contractor in 
        person and are--
              (i) of a technical and professional nature; or
              (ii) under Federal Government supervision and paid for on 
            a time basis.
  (c) Sales.--Except when otherwise authorized by law or when the 
reasonable value involved in any one case does not exceed $500, sales 
and contracts of sale by the Federal Government are governed by the 
requirements of this section for advertising.
  (d) Application to Wholly Owned Government Corporations.--For wholly 
owned Government corporations, this section applies only to 
administrative transactions.

Sec. 6102. Exceptions from advertising requirement

  (a) American Battle Monuments Commission.--Section 6101 of this title 
does not apply to the American Battle Monuments Commission with respect 
to leases in foreign countries for office or garage space.
  (b) Bureau of Interparliamentary Union for Promotion of International 
Arbitration.--Section 6101 of this title does not apply to the Bureau 
of Interparliamentary Union for Promotion of International Arbitration 
with respect to necessary stenographic reporting services by contract.
  (c) Department of State.--Section 6101 of this title does not apply 
to the Department of State when the purchase or service relates to the 
packing of personal and household effects of Diplomatic, Consular, and 
Foreign Service officers and clerks for foreign shipment.
  (d) International Committee of Aerial Legal Experts.--Section 6101 of 
this title does not apply to the International Committee of Aerial 
Legal Experts with respect to necessary stenographic and other services 
by contract.
  (e) Architect of the Capitol.--The purchase of supplies and equipment 
and the procurement of services for all branches under the Architect of 
the Capitol may be made in the open market according to common business 
practice, without compliance with section 6101 of this title, when the 
aggregate amount of the purchase or the service does not exceed $25,000 
in any instance.
  (f) Forest Products From Indian Reservations.--Lumber and other 
forest products produced by Indian enterprises from forests on Indian 
reservations may be sold under regulations the Secretary of the 
Interior prescribes, without compliance with section 6101 of this 
title.
  (g) House of Representatives.--Section 6101 of this title does not 
apply to purchases and contracts for supplies or services for any 
office of the House of Representatives.
  (h) Congressional Budget Office.--The Director of the Congressional 
Budget Office may enter into agreements or contracts without regard to 
section 6101 of this title.

Sec. 6103. Opening of bids

  Whenever proposals for supplies have been solicited, the parties 
responding to the solicitation shall be notified of the time and place 
of the opening of the bids, and be permitted to be present either in 
person or by attorney. A record of each bid shall be made at the time 
and place of the opening of the bids.

                CHAPTER 63--GENERAL CONTRACT PROVISIONS

Sec.
6301.  Authorization requirement.
6302.  Contracts for fuel made by Secretary of the Army.
6303.  Certain contracts limited to appropriated amounts.
6304.  Certain contracts limited to one-year term.
6305.  Prohibition on transfer of contract and certain allowable 
          assignments.
6306.  Prohibition on Members of Congress making contracts with Federal 
          Government.
6307.  Contracts with Federal Government-owned establishments and 
          availability of appropriations.
6308.  Contracts for transportation of Federal Government securities.
6309.  Honorable discharge certificate in lieu of birth certificate.

Sec. 6301. Authorization requirement

  (a) In General.--A contract or purchase on behalf of the Federal 
Government shall not be made unless the contract or purchase is 
authorized by law or is under an appropriation adequate to its 
fulfillment.
  (b) Exception.--
      (1) Definition.--In this subsection, the term ``defined 
    Secretary'' means--
          (A) the Secretary of Defense; or
          (B) the Secretary of Homeland Security with respect to the 
        Coast Guard when the Coast Guard is not operating as a service 
        in the Navy.
      (2) In general.--Subsection (a) does not apply to a contract or 
    purchase made by a defined Secretary for clothing, subsistence, 
    forage, fuel, quarters, transportation, or medical and hospital 
    supplies.
      (3) Current year limitation.--A contract or purchase made by a 
    defined Secretary under this subsection may not exceed the 
    necessities of the current year.
      (4) Reports.--The defined Secretary shall immediately advise 
    Congress when authority is exercised under this subsection. The 
    defined Secretary shall report quarterly on the estimated 
    obligations incurred pursuant to the authority granted in this 
    subsection.
  (c) Special Rule for Purchase of Land.--Land may not be purchased by 
the Federal Government unless the purchase is authorized by law.

Sec. 6302. Contracts for fuel made by Secretary of the Army

  The Secretary of the Army, when the Secretary believes it is in the 
interest of the United States, may enter into contracts and incur 
obligations for fuel in sufficient quantities to meet the requirements 
for one year without regard to the current fiscal year. Amounts 
appropriated for the fiscal year in which the contract is made or 
amounts appropriated or which may be appropriated for the following 
fiscal year may be used to pay for supplies delivered under a contract 
made pursuant to this section.

Sec. 6303. Certain contracts limited to appropriated amounts

  A contract to erect, repair, or furnish a public building, or to make 
any public improvement, shall not be made on terms requiring the 
Federal Government to pay more than the amount specifically 
appropriated for the activity covered by the contract.

Sec. 6304. Certain contracts limited to one-year term

  Except as otherwise provided, an executive department shall not make 
a contract for stationery or other supplies for a term longer than one 
year from the time the contract is made.

Sec. 6305. Prohibition on transfer of contract and certain allowable 
            assignments

  (a) General Prohibition on Transfer of Contracts.--The party to whom 
the Federal Government gives a contract or order may not transfer the 
contract or order, or any interest in the contract or order, to another 
party. A purported transfer in violation of this subsection annuls the 
contract or order so far as the Federal Government is concerned, except 
that all rights of action for breach of contract are reserved to the 
Federal Government.
  (b) Assignment.--
      (1) In general.--Notwithstanding subsection (a) and in accordance 
    with the requirements of this subsection, amounts due from the 
    Federal Government under a contract may be assigned to a bank, 
    trust company, Federal lending agency, or other financing 
    institution.
      (2) Minimum amount.--This subsection applies only to a contract 
    under which the aggregate amounts due from the Federal Government 
    total at least $1,000.
      (3) Accord with contract terms.--Assignment may not be made under 
    this subsection if the contract forbids the assignment.
      (4) Full balance due.--Unless otherwise expressly permitted by 
    the contract, an assignment under this subsection must cover the 
    balance of all amounts due from the Federal Government under the 
    contract.
      (5) Single assignment.--Unless otherwise expressly permitted by 
    the contract, an assignment under this subsection may not be made 
    to more than one party or be subject to further assignment, except 
    that assignment may be made to one party as agent or trustee for 2 
    or more parties participating in the financing.
      (6) Written notice.--The assignee of an assignment under this 
    subsection shall file written notice of the assignment and a true 
    copy of the instrument of assignment with--
          (A) the contracting officer or head of the officer's 
        department or agency;
          (B) the surety on any bond connected with the contract; and
          (C) the disbursing officer, if any, designated in the 
        contract to make payment.
      (7) Validity.--Notwithstanding any law to the contrary governing 
    the validity of assignments, an assignment under this subsection is 
    a valid assignment for all purposes.
      (8) No refund to cover assignor's liability.--The assignee of an 
    assignment under this subsection is not liable to make any refund 
    to the Federal Government because of an assignor's liability to the 
    Federal Government, whether that liability arises from the contract 
    or independently.
      (9) Avoiding reduction or setoff with certain contracts.--
          (A) Contract provision.--A contract of the Department of 
        Defense, the General Services Administration, the Department of 
        Energy, or another department or agency of the Federal 
        Government designated by the President may, on a determination 
        of need by the President, provide or be amended without 
        consideration to provide that payments made to an assignee 
        under the contract are not subject to reduction or setoff. Each 
        determination of need by the President under this subparagraph 
        shall be published in the Federal Register.
          (B) Carrying out contract provision.--When a ``no reduction 
        or setoff'' provision as described in subparagraph (A) is 
        included in a contract, payments to the assignee are not 
        subject to reduction or setoff for an assignor's liability 
        arising--
              (i) independently of the contract;
              (ii) on account of renegotiation under a renegotiation 
            statute or under a statutory renegotiation article in the 
            contract;
              (iii) on account of fines;
              (iv) on account of penalties; or
              (v) on account of taxes, social security contributions, 
            or the withholding or non-withholding of taxes or social 
            security contributions, whether arising from or 
            independently of the contract.
          (C) Limitation.--Subparagraph (B)(iv) does not apply to 
        amounts which may be collected or withheld from the assignor in 
        accordance with or for failure to comply with the terms of the 
        contract.

Sec. 6306. Prohibition on Members of Congress making contracts with 
            Federal Government

  (a) In General.--A Member of Congress may not enter into or benefit 
from a contract or agreement or any part of a contract or agreement 
with the Federal Government.
  (b) Exemptions.--
      (1) In general.--Subsection (a) does not apply to contracts that 
    the Secretary of Agriculture may enter into with farmers.
      (2) Certain acts.--Subsection (a) does not apply to a contract 
    entered into under--
          (A) the Agricultural Adjustment Act (7 U.S.C. 601 et seq.);
          (B) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); or
          (C) the Home Owners' Loan Act (12 U.S.C. 1461 et seq.).
      (3) Public record.--An exemption under this subsection shall be 
    made a matter of public record.

Sec. 6307. Contracts with Federal Government-owned establishments and 
            availability of appropriations

  An order or contract placed with a Federal Government-owned 
establishment for work, material, or the manufacture of material 
pertaining to an approved project is deemed to be an obligation in the 
same manner that a similar order or contract placed with a commercial 
manufacturer or private contractor is an obligation. Appropriations 
remain available to pay an obligation to a Federal Government-owned 
establishment just as appropriations remain available to pay an 
obligation to a commercial manufacturer or private contractor.

Sec. 6308. Contracts for transportation of Federal Government 
            securities

  When practicable, a contract for transporting bullion, cash, or 
securities of the Federal Government shall be awarded to the lowest 
responsible bidder after notice to all parties with means of 
transportation.

Sec. 6309. Honorable discharge certificate in lieu of birth certificate

  (a) In General.--An employer described in subsection (b) may not deny 
employment, on account of failure to produce a birth certificate, to an 
individual who submits, in lieu of the birth certificate, an honorable 
discharge certificate (or certificate issued in lieu of an honorable 
discharge certificate) from the Army, Air Force, Navy, Marine Corps, or 
Coast Guard of the United States, unless the honorable discharge 
certificate shows on its face that the individual may have been an 
alien at the time of its issuance.
  (b) Employers to Which Section Applies.--An employer referred to in 
subsection (a) is an employer--
      (1) engaged in--
          (A) the production, maintenance, or storage of arms, 
        armament, ammunition, implements of war, munitions, machinery, 
        tools, clothing, food, fuel, or any articles or supplies, or 
        parts or ingredients of any articles or supplies; or
          (B) the construction, reconstruction, repair, or installation 
        of a building, plant, structure, or facility; and
      (2) engaged in the activity described in paragraph (1) under--
          (A) a contract with the Federal Government; or
          (B) any contract that the President, the Secretary of the 
        Army, the Secretary of the Air Force, the Secretary of the 
        Navy, or the Secretary of the Department in which the Coast 
        Guard is operating certifies to the employer to be necessary to 
        the national defense.

CHAPTER 65--CONTRACTS FOR MATERIALS, SUPPLIES, ARTICLES, AND EQUIPMENT 
                           EXCEEDING $10,000

Sec.
6501.  Definitions.
6502.  Required contract terms.
6503.  Breach or violation of required contract terms.
6504.  Three-year prohibition on new contracts in case of breach or 
          violation.
6505.  Exclusions.
6506.  Administrative provisions.
6507.  Hearing authority and procedures.
6508.  Authority to make exceptions.
6509.  Other procedures.
6510.  Manufacturers and regular dealers.
6511.  Effect on other law.

Sec. 6501. Definitions

  In this chapter--
      (1) Agency of the united states.--The term ``agency of the United 
    States'' means an executive department, independent establishment, 
    or other agency or instrumentality of the United States, the 
    District of Columbia, or a corporation in which all stock is 
    beneficially owned by the Federal Government.
      (2) Person.--The term ``person'' includes one or more 
    individuals, partnerships, associations, corporations, legal 
    representatives, trustees, trustees in cases under title 11, or 
    receivers.
      (3) Secretary.--The term ``Secretary'' means the Secretary of 
    Labor.

Sec. 6502. Required contract terms

  A contract made by an agency of the United States for the manufacture 
or furnishing of materials, supplies, articles, or equipment, in an 
amount exceeding $10,000, shall include the following representations 
and stipulations:
      (1) Minimum wages to be paid.--All individuals employed by the 
    contractor in the manufacture or furnishing of materials, supplies, 
    articles, or equipment under the contract will be paid, without 
    subsequent deduction or rebate on any account, not less than the 
    prevailing minimum wages, as determined by the Secretary, for 
    individuals employed in similar work or in the particular or 
    similar industries or groups of industries currently operating in 
    the locality in which the materials, supplies, articles, or 
    equipment are to be manufactured or furnished under the contract, 
    except that this paragraph applies only to purchases or contracts 
    relating to industries that have been the subject matter of a 
    determination by the Secretary.
      (2) Maximum number of hours to be worked in a week.--No 
    individual employed by the contractor in the manufacture or 
    furnishing of materials, supplies, articles, or equipment under the 
    contract shall be permitted to work in excess of 40 hours in any 
    one week, except that this paragraph does not apply to an employer 
    who has entered into an agreement with employees pursuant to 
    paragraph (1) or (2) of section 7(b) of the Fair Labor Standards 
    Act of 1938 (29 U.S.C. 207(b)(1) or (2)).
      (3) Ineligible employees.--No individual under 16 years of age 
    and no incarcerated individual will be employed by the contractor 
    in the manufacture or furnishing of materials, supplies, articles, 
    or equipment under the contract, except that this section, or other 
    law or executive order containing similar prohibitions against the 
    purchase of goods by the Federal Government, does not apply to 
    convict labor that satisfies the conditions of section 1761(c) of 
    title 18.
      (4) Standards of places and working conditions where contract 
    performed.--No part of the contract will be performed, and no 
    materials, supplies, articles, or equipment will be manufactured or 
    fabricated under the contract, in plants, factories, buildings, or 
    surroundings, or under working conditions, that are unsanitary, 
    hazardous, or dangerous to the health and safety of employees 
    engaged in the performance of the contract. Compliance with the 
    safety, sanitary, and factory inspection laws of the State in which 
    the work or part of the work is to be performed is prima facie 
    evidence of compliance with this paragraph.

Sec. 6503. Breach or violation of required contract terms

  (a) Applicable Breach or Violation.--This section applies in case of 
breach or violation of a representation or stipulation included in a 
contract under section 6502 of this title.
  (b) Liquidated Damages.--In addition to damages for any other breach 
of the contract, the party responsible for a breach or violation 
described in subsection (a) is liable to the Federal Government for the 
following liquidated damages:
      (1) An amount equal to the sum of $10 per day for each individual 
    under 16 years of age and each incarcerated individual knowingly 
    employed in the performance of the contract.
      (2) An amount equal to the sum of each underpayment of wages due 
    an employee engaged in the performance of the contract, including 
    any underpayments arising from deductions, rebates, or refunds.
  (c) Cancellation and Alternative Completion.--In addition to the 
Federal Government being entitled to damages described in subsection 
(b), the agency of the United States that made the contract may cancel 
the contract and make open-market purchases or make other contracts for 
the completion of the original contract, charging any additional cost 
to the original contractor.
  (d) Recovery of Amounts Due.--An amount due the Federal Government 
because of a breach or violation described in subsection (a) may be 
withheld from any amounts owed the contractor under any contract under 
section 6502 of this title or may be recovered in a suit brought by the 
Attorney General.
  (e) Employee Reimbursement for Underpayment of Wages.--An amount 
withheld or recovered under subsection (d) that is based on an 
underpayment of wages as described in subsection (b)(2) shall be held 
in a special deposit account. On order of the Secretary, the amount 
shall be paid directly to the underpaid employee on whose account the 
amount was withheld or recovered. However, an employee's claim for 
payment under this subsection may be entertained only if made within 
one year from the date of actual notice to the contractor of the 
withholding or recovery.

Sec. 6504. Three-year prohibition on new contracts in case of breach or 
            violation

  (a) Distribution of List.--The Comptroller General shall distribute 
to each agency of the United States a list containing the names of 
persons found by the Secretary to have breached or violated a 
representation or stipulation included in a contract under section 6502 
of this title.
  (b) Three-Year Prohibition.--Unless the Secretary recommends 
otherwise, a contract described in section 6502 of this title may not 
be awarded to a person named on the list under subsection (a), or to a 
firm, corporation, partnership, or association in which the person has 
a controlling interest, until 3 years have elapsed from the date of the 
determination by the Secretary that a breach or violation occurred.

Sec. 6505. Exclusions

  (a) Items Available in the Open Market.--This chapter does not apply 
to the purchase of materials, supplies, articles, or equipment that may 
usually be bought in the open market.
  (b) Perishables and Agricultural Products.--This chapter does not 
apply to any of the following:
      (1) Perishables, including dairy, livestock and nursery products.
      (2) Agricultural or farm products processed for first sale by the 
    original producers.
      (3) Contracts made by the Secretary of Agriculture for the 
    purchase of agricultural commodities or products of agricultural 
    commodities.
  (c) Carriage of Freight or Personnel.--This chapter may not be 
construed to apply to--
      (1) the carriage of freight or personnel by vessel, airplane, 
    bus, truck, express, or railway line where published tariff rates 
    are in effect; or
      (2) common carriers subject to the Communications Act of 1934 (47 
    U.S.C. 151 et seq.).

Sec. 6506. Administrative provisions

  (a) In General.--The Secretary shall administer this chapter.
  (b) Regulations.--The Secretary may make, amend, and rescind 
regulations as necessary to carry out this chapter.
  (c) Use of Government Officers and Employees.--The Secretary shall 
use Federal officers and employees and, with a State's consent, State 
and local officers and employees as the Secretary finds necessary to 
assist in the administration of this chapter.
  (d) Appointments.--The Secretary shall appoint an administrative 
officer and attorneys, experts, and other employees from time to time 
as the Secretary finds necessary for the administration of this 
chapter. The appointments are subject to chapter 51 and subchapter III 
of chapter 53 of title 5 and other law applicable to the employment and 
compensation of officers and employees of the Federal Government.
  (e) Investigations.--The Secretary, or an authorized representative 
of the Secretary, may make investigations and findings as provided in 
this chapter and may, in any part of the United States, prosecute an 
inquiry necessary to carry out this chapter.

Sec. 6507. Hearing authority and procedures

  (a) Record and Hearing Requirements for Wage Determinations.--A wage 
determination under section 6502(1) of this title shall be made on the 
record after opportunity for a hearing.
  (b) Authority To Hold Hearings.--The Secretary or an impartial 
representative designated by the Secretary may hold hearings when there 
is a complaint of breach or violation of a representation or 
stipulation included in a contract under section 6502 of this title. 
The Secretary may initiate hearings on the Secretary's own motion or on 
the application of a person affected by the ruling of an agency of the 
United States relating to a proposal or contract under this chapter.
  (c) Orders To Compel Testimony.--The Secretary or an impartial 
representative designated by the Secretary may issue orders requiring 
witnesses to attend hearings held under this section and to produce 
evidence and testify under oath. Witnesses shall be paid fees and 
mileage at the same rates as witnesses in courts of the United States.
  (d) Enforcement of Orders.--If a person refuses or fails to obey an 
order issued under subsection (c), the Secretary or an impartial 
representative designated by the Secretary may bring an action to 
enforce the order in a district court of the United States or in the 
district court of a territory or possession of the United States. A 
court has jurisdiction to enforce the order if the inquiry is being 
carried out within the court's judicial district or if the person is 
found or resides or transacts business within the court's judicial 
district. The court may issue an order requiring the person to obey the 
order issued under subsection (c), and the court may punish any further 
refusal or failure as contempt of court.
  (e) Findings of Fact.--After notice and a hearing, the Secretary or 
an impartial representative designated by the Secretary shall make 
findings of fact. The findings are conclusive for agencies of the 
United States. If supported by a preponderance of the evidence, the 
findings are conclusive in any court of the United States.
  (f) Decisions.--The Secretary or an impartial representative 
designated by the Secretary may make decisions, based on findings of 
fact, that are considered necessary to enforce this chapter.

Sec. 6508. Authority to make exceptions

  (a) Duty of the Secretary To Make Exceptions.--When the head of an 
agency of the United States makes a written finding that the inclusion 
of representations or stipulations under section 6502 of this title in 
a proposal or contract will seriously impair the conduct of Federal 
Government business, the Secretary shall make exceptions, in specific 
cases or otherwise, when justice or the public interest will be served.
  (b) Authority of the Secretary To Modify Existing Contracts.--When an 
agency of the United States and a contractor jointly recommend, the 
Secretary may modify the terms of an existing contract with respect to 
minimum wages and maximum hours of labor as the Secretary finds 
necessary and proper in the public interest or to prevent injustice and 
undue hardship.
  (c) Authority of the Secretary To Allow Limitations, Variations, 
Tolerances, and Exemptions.--The Secretary may provide reasonable 
limitations and may prescribe regulations to allow reasonable 
variations, tolerances, and exemptions in the application of this 
chapter to contractors, including with respect to minimum wages and 
maximum hours of labor.
  (d) Rate of Pay for Overtime.--When the Secretary permits an increase 
in the maximum hours of labor stipulated in a contract, the Secretary 
shall set a rate of pay for overtime. The overtime rate must be at 
least one and one-half times the basic hourly rate.
  (e) Authority of the President To Suspend.--The President may suspend 
any of the representations and stipulations contained in section 6502 
of this title whenever, in the President's judgment, suspension is in 
the public interest.

Sec. 6509. Other procedures

  (a) Applicability of Certain Administrative Provisions.--
Notwithstanding section 553 of title 5, subchapter II of chapter 5 and 
chapter 7 of title 5 are applicable in the administration of sections 
6501 to 6507 and 6511 of this title.
  (b) Judicial Review in General.--Notwithstanding the inclusion of 
representations and stipulations in a contract under section 6502 of 
this title, an interested person has the right of judicial review of 
any legal question which might otherwise be raised, including wage 
determinations and the interpretation of the terms ``locality'' and 
``open market''.
  (c) Judicial Review of Wage Determinations.--A person adversely 
affected or aggrieved by a wage determination under section 6502(1) of 
this title has the right of judicial review of the determination, or of 
the applicability of the determination, within 90 days after the 
determination is made, in the manner provided by chapter 7 of title 5. 
A person adversely affected or aggrieved by a wage determination is 
deemed to include a person in an industry to which the determination 
applies that is a supplier of materials, supplies, articles, or 
equipment that are purchased or intended to be purchased by the Federal 
Government from any source.

Sec. 6510. Manufacturers and regular dealers

  (a) Prescribing Standards.--The Secretary may prescribe, in 
regulations, standards for determining whether a contractor is a 
manufacturer or regular dealer with respect to materials, supplies, 
articles, or equipment to be manufactured or furnished under, or used 
in the performance of, a contract entered into by an agency of the 
United States.
  (b) Judicial Review.--An interested person has the right of judicial 
review of any legal question relating to interpretation of the terms 
``regular dealer'' and ``manufacturer'' as defined pursuant to 
subsection (a).

Sec. 6511. Effect on other law

  This chapter may not be construed to modify or amend the following 
provisions:
      (1) Chapter 83 of this title.
      (2) Sections 3141 to 3144, 3146, and 3147 of title 40.
      (3) Chapter 307 of title 18.

              CHAPTER 67--SERVICE CONTRACT LABOR STANDARDS

Sec.
6701.  Definitions.
6702.  Contracts to which this chapter applies.
6703.  Required contract terms.
6704.  Limitation on minimum wage.
6705.  Violations.
6706.  Three-year prohibition on new contracts in case of violation.
6707.  Enforcement and administration of chapter.

Sec. 6701. Definitions

  In this chapter:
      (1) Compensation.--The term ``compensation'' means any of the 
    payments or fringe benefits described in section 6703 of this 
    title.
      (2) Secretary.--The term ``Secretary'' means the Secretary of 
    Labor.
      (3) Service employee.--The term ``service employee''--
          (A) means an individual engaged in the performance of a 
        contract made by the Federal Government and not exempted under 
        section 6702(b) of this title, whether negotiated or 
        advertised, the principal purpose of which is to furnish 
        services in the United States;
          (B) includes an individual without regard to any contractual 
        relationship alleged to exist between the individual and a 
        contractor or subcontractor; but
          (C) does not include an individual employed in a bona fide 
        executive, administrative, or professional capacity, as those 
        terms are defined in part 541 of title 29, Code of Federal 
        Regulations.
      (4) United states.--The term ``United States''--
          (A) includes any State of the United States, the District of 
        Columbia, Puerto Rico, the Virgin Islands, the outer 
        Continental Shelf as defined in the Outer Continental Shelf 
        Lands Act (43 U.S.C. Sec. 1331 et seq.), American Samoa, Guam, 
        Wake Island, and Johnston Island; but
          (B) does not include any other territory under the 
        jurisdiction of the United States or any United States base or 
        possession within a foreign country.

Sec. 6702. Contracts to which this chapter applies

  (a) In General.--Except as provided in subsection (b), this chapter 
applies to any contract or bid specification for a contract, whether 
negotiated or advertised, that--
      (1) is made by the Federal Government or the District of 
    Columbia;
      (2) involves an amount exceeding $2,500; and
      (3) has as its principal purpose the furnishing of services in 
    the United States through the use of service employees.
  (b) Exemptions.--This chapter does not apply to--
      (1) a contract of the Federal Government or the District of 
    Columbia for the construction, alteration, or repair, including 
    painting and decorating, of public buildings or public works;
      (2) any work required to be done in accordance with chapter 65 of 
    this title;
      (3) a contract for the carriage of freight or personnel by 
    vessel, airplane, bus, truck, express, railway line or oil or gas 
    pipeline where published tariff rates are in effect;
      (4) a contract for the furnishing of services by radio, 
    telephone, telegraph, or cable companies, subject to the 
    Communications Act of 1934 (47 U.S.C. 151 et seq.);
      (5) a contract for public utility services, including electric 
    light and power, water, steam, and gas;
      (6) an employment contract providing for direct services to a 
    Federal agency by an individual; and
      (7) a contract with the United States Postal Service, the 
    principal purpose of which is the operation of postal contract 
    stations.

Sec. 6703. Required contract terms

  A contract, and bid specification for a contract, to which this 
chapter applies under section 6702 of this title shall contain the 
following terms:
      (1) Minimum wage.--The contract and bid specification shall 
    contain a provision specifying the minimum wage to be paid to each 
    class of service employee engaged in the performance of the 
    contract or any subcontract, as determined by the Secretary or the 
    Secretary's authorized representative, in accordance with 
    prevailing rates in the locality, or, where a collective-bargaining 
    agreement covers the service employees, in accordance with the 
    rates provided for in the agreement, including prospective wage 
    increases provided for in the agreement as a result of arm's length 
    negotiations. In any case the minimum wage may not be less than the 
    minimum wage specified in section 6704 of this title.
      (2) Fringe benefits.--The contract and bid specification shall 
    contain a provision specifying the fringe benefits to be provided 
    to each class of service employee engaged in the performance of the 
    contract or any subcontract, as determined by the Secretary or the 
    Secretary's authorized representative to be prevailing in the 
    locality, or, where a collective-bargaining agreement covers the 
    service employees, to be provided for under the agreement, 
    including prospective fringe benefit increases provided for in the 
    agreement as a result of arm's-length negotiations. The fringe 
    benefits shall include medical or hospital care, pensions on 
    retirement or death, compensation for injuries or illness resulting 
    from occupational activity, or insurance to provide any of the 
    foregoing, unemployment benefits, life insurance, disability and 
    sickness insurance, accident insurance, vacation and holiday pay, 
    costs of apprenticeship or other similar programs and other bona 
    fide fringe benefits not otherwise required by Federal, State, or 
    local law to be provided by the contractor or subcontractor. The 
    obligation under this paragraph may be discharged by furnishing any 
    equivalent combinations of fringe benefits or by making equivalent 
    or differential payments in cash under regulations established by 
    the Secretary.
      (3) Working conditions.--The contract and bid specification shall 
    contain a provision specifying that no part of the services covered 
    by this chapter may be performed in buildings or surroundings or 
    under working conditions, provided by or under the control or 
    supervision of the contractor or any subcontractor, which are 
    unsanitary or hazardous or dangerous to the health or safety of 
    service employees engaged to provide the services.
      (4) Notice.--The contract and bid specification shall contain a 
    provision specifying that on the date a service employee begins 
    work on a contract to which this chapter applies, the contractor or 
    subcontractor will deliver to the employee a notice of the 
    compensation required under paragraphs (1) and (2), on a form 
    prepared by the Federal agency, or will post a notice of the 
    required compensation in a prominent place at the worksite.
      (5) General schedule pay rates and prevailing rate systems.--The 
    contract and bid specification shall contain a statement of the 
    rates that would be paid by the Federal agency to each class of 
    service employee if section 5332 or 5341 of title 5 were applicable 
    to them. The Secretary shall give due consideration to these rates 
    in making the wage and fringe benefit determinations specified in 
    this section.

Sec. 6704. Limitation on minimum wage

  (a) In General.--A contractor that makes a contract with the Federal 
Government, the principal purpose of which is to furnish services 
through the use of service employees, and any subcontractor, may not 
pay less than the minimum wage specified under section 6(a)(1) of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) to an employee 
engaged in performing work on the contract.
  (b) Violations.--Sections 6705 to 6707(d) of this title are 
applicable to a violation of this section.

Sec. 6705. Violations

  (a) Liability of Responsible Party.--A party responsible for a 
violation of a contract provision required under section 6703(1) or (2) 
of this title or a violation of section 6704 of this title is liable 
for an amount equal to the sum of any deduction, rebate, refund, or 
underpayment of compensation due any employee engaged in the 
performance of the contract.
  (b) Recovery of Amounts Underpaid to Employees.--
      (1) Withholding accrued payments due on contracts.--The total 
    amount determined under subsection (a) to be due any employee 
    engaged in the performance of a contract may be withheld from 
    accrued payments due on the contract or on any other contract 
    between the same contractor and the Federal Government. The amount 
    withheld shall be held in a deposit fund. On order of the 
    Secretary, the compensation found by the Secretary or the head of a 
    Federal agency to be due an underpaid employee pursuant to this 
    chapter shall be paid from the deposit fund directly to the 
    underpaid employee.
      (2) Bringing actions against contractors.--If the accrued 
    payments withheld under the terms of the contract are insufficient 
    to reimburse a service employee with respect to whom there has been 
    a failure to pay the compensation required pursuant to this 
    chapter, the Federal Government may bring action against the 
    contractor, subcontractor, or any sureties in any court of 
    competent jurisdiction to recover the remaining amount of 
    underpayment. Any amount recovered shall be held in the deposit 
    fund and shall be paid, on order of the Secretary, directly to the 
    underpaid employee. Any amount not paid to an employee because of 
    inability to do so within 3 years shall be covered into the 
    Treasury as miscellaneous receipts.
  (c) Cancellation and Alternative Completion.--In addition to other 
actions in accordance with this section, when a violation of any 
contract stipulation is found, the Federal agency that made the 
contract may cancel the contract on written notice to the original 
contractor. The Federal Government may then make other contracts or 
arrangements for the completion of the original contract, charging any 
additional cost to the original contractor.
  (d) Enforcement of Section.--In accordance with regulations 
prescribed pursuant to section 6707(a)-(d) of this title, the Secretary 
or the head of a Federal agency may carry out this section.

Sec. 6706. Three-year prohibition on new contracts in case of violation

  (a) Distribution of List.--The Comptroller General shall distribute 
to each agency of the Federal Government a list containing the names of 
persons or firms that a Federal agency or the Secretary has found to 
have violated this chapter.
  (b) Three-Year Prohibition.--Unless the Secretary recommends 
otherwise because of unusual circumstances, a Federal Government 
contract may not be awarded to a person or firm named on the list under 
subsection (a), or to an entity in which the person or firm has a 
substantial interest, until 3 years have elapsed from the date of 
publication of the list. If the Secretary does not recommend otherwise 
because of unusual circumstances, the Secretary shall, not later than 
90 days after a hearing examiner has made a finding of a violation of 
this chapter, forward to the Comptroller General the name of the person 
or firm found to have violated this chapter.

Sec. 6707. Enforcement and administration of chapter

  (a) Enforcement of Chapter.--Sections 6506 and 6507 of this title 
govern the Secretary's authority to enforce this chapter, including the 
Secretary's authority to prescribe regulations, issue orders, hold 
hearings, make decisions based on findings of fact, and take other 
appropriate action under this chapter.
  (b) Limitations and Regulations for Variations, Tolerances, and 
Exemptions.--The Secretary may provide reasonable limitations and may 
prescribe regulations allowing reasonable variation, tolerances, and 
exemptions with respect to this chapter (other than subsection (f)), 
but only in special circumstances where the Secretary determines that 
the limitation, variation, tolerance, or exemption is necessary and 
proper in the public interest or to avoid the serious impairment of 
Federal Government business, and is in accord with the remedial purpose 
of this chapter to protect prevailing labor standards.
  (c) Preservation of Wages and Benefits Due Under Predecessor 
Contracts.--
      (1) In general.--Under a contract which succeeds a contract 
    subject to this chapter, and under which substantially the same 
    services are furnished, a contractor or subcontractor may not pay a 
    service employee less than the wages and fringe benefits the 
    service employee would have received under the predecessor 
    contract, including accrued wages and fringe benefits and any 
    prospective increases in wages and fringe benefits provided for in 
    a collective-bargaining agreement as a result of arm's-length 
    negotiations.
      (2) Exception.--This subsection does not apply if the Secretary 
    finds after a hearing in accordance with regulations adopted by the 
    Secretary that wages and fringe benefits under the predecessor 
    contract are substantially at variance with wages and fringe 
    benefits prevailing in the same locality for services of a similar 
    character.
  (d) Duration of Contracts.--Subject to limitations in annual 
appropriation acts but notwithstanding any other law, a contract to 
which this chapter applies may, if authorized by the Secretary, be for 
any term of years not exceeding 5, if the contract provides for 
periodic adjustment of wages and fringe benefits pursuant to future 
determinations, issued in the manner prescribed in section 6703 of this 
title at least once every 2 years during the term of the contract, 
covering each class of service employee.
  (e) Exclusion of Fringe Benefit Payments in Determining Overtime 
Pay.--In determining any overtime pay to which a service employee is 
entitled under Federal law, the regular or basic hourly rate of pay of 
the service employee does not include any fringe benefit payments 
computed under this chapter which are excluded from the definition of 
``regular rate'' under section 7(e) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 207(e)).
  (f) Timeliness of Wage and Fringe Benefit Determinations.--It is the 
intent of Congress that determinations of minimum wages and fringe 
benefits under section 6703(1) and (2) of this title should be made as 
soon as administratively feasible for all contracts subject to this 
chapter. In any event, the Secretary shall at least make the 
determinations for contracts under which more than 5 service employees 
are to be employed.

                    Subtitle III--Contract Disputes

Chapter                                                             Sec.

Contract Disputes...................................................7101

                     CHAPTER 71--CONTRACT DISPUTES

Sec.
7101.  Definitions.
7102.  Applicability of chapter.
7103.  Decision by contracting officer.
7104.  Contractor's right of appeal from decision by contracting 
          officer.
7105.  Agency boards.
7106.  Agency board procedures for accelerated and small claims.
7107.  Judicial review of agency board decisions.
7108.  Payment of claims.
7109.  Interest.

Sec. 7101. Definitions

  In this chapter:
      (1) Administrator.--The term ``Administrator'' means the 
    Administrator for Federal Procurement Policy appointed pursuant to 
    section 1102 of this title.
      (2) Agency board or agency board of contract appeals.--The term 
    ``agency board'' or ``agency board of contract appeals'' means--
          (A) the Armed Services Board;
          (B) the Civilian Board;
          (C) the board of contract appeals of the Tennessee Valley 
        Authority; or
          (D) the Postal Service Board established under section 
        7105(d)(1) of this title.
      (3) Agency head.--The term ``agency head'' means the head and any 
    assistant head of an executive agency. The term may include the 
    chief official of a principal division of an executive agency if 
    the head of the executive agency so designates that chief official.
      (4) Armed services board.--The term ``Armed Services Board'' 
    means the Armed Services Board of Contract Appeals established 
    under section 7105(a)(1) of this title.
      (5) Civilian board.--The term ``Civilian Board'' means the 
    Civilian Board of Contract Appeals established under section 
    7105(b)(1) of this title.
      (6) Contracting officer.--The term ``contracting officer''--
          (A) means an individual who, by appointment in accordance 
        with applicable regulations, has the authority to make and 
        administer contracts and to make determinations and findings 
        with respect to contracts; and
          (B) includes an authorized representative of the contracting 
        officer, acting within the limits of the representative's 
        authority.
      (7) Contractor.--The term ``contractor'' means a party to a 
    Federal Government contract other than the Federal Government.
      (8) Executive agency.--The term ``executive agency'' means--
          (A) an executive department as defined in section 101 of 
        title 5;
          (B) a military department as defined in section 102 of title 
        5;
          (C) an independent establishment as defined in section 104 of 
        title 5, except that the term does not include the Government 
        Accountability Office; and
          (D) a wholly owned Government corporation as defined in 
        section 9101(3) of title 31.
      (9) Misrepresentation of fact.--The term ``misrepresentation of 
    fact'' means a false statement of substantive fact, or conduct that 
    leads to a belief of a substantive fact material to proper 
    understanding of the matter in hand, made with intent to deceive or 
    mislead.

Sec. 7102. Applicability of chapter

  (a) Executive Agency Contracts.--Unless otherwise specifically 
provided in this chapter, this chapter applies to any express or 
implied contract (including those of the nonappropriated fund 
activities described in sections 1346 and 1491 of title 28) made by an 
executive agency for--
      (1) the procurement of property, other than real property in 
    being;
      (2) the procurement of services;
      (3) the procurement of construction, alteration, repair, or 
    maintenance of real property; or
      (4) the disposal of personal property.
  (b) Tennessee Valley Authority Contracts.--
      (1) In general.--With respect to contracts of the Tennessee 
    Valley Authority, this chapter applies only to contracts containing 
    a clause that requires contract disputes to be resolved through an 
    agency administrative process.
      (2) Exclusion.--Notwithstanding any other provision of this 
    chapter, this chapter does not apply to a contract of the Tennessee 
    Valley Authority for the sale of fertilizer or electric power or 
    related to the conduct or operation of the electric power system.
  (c) Foreign Government or International Organization Contracts.--If 
an agency head determines that applying this chapter would not be in 
the public interest, this chapter does not apply to a contract with a 
foreign government, an agency of a foreign government, an international 
organization, or a subsidiary body of an international organization.
  (d) Maritime Contracts.--Appeals under section 7107(a) of this title 
and actions brought under sections 7104(b) and 7107(b) to (f) of this 
title, arising out of maritime contracts, are governed by chapter 309 
or 311 of title 46, as applicable, to the extent that those chapters 
are not inconsistent with this chapter.

Sec. 7103. Decision by contracting officer

  (a) Claims Generally.--
      (1) Submission of contractor's claims to contracting officer.--
    Each claim by a contractor against the Federal Government relating 
    to a contract shall be submitted to the contracting officer for a 
    decision.
      (2) Contractor's claims in writing.--Each claim by a contractor 
    against the Federal Government relating to a contract shall be in 
    writing.
      (3) Contracting officer to decide federal government's claims.--
    Each claim by the Federal Government against a contractor relating 
    to a contract shall be the subject of a written decision by the 
    contracting officer.
      (4) Time for submitting claims.--
          (A) In general.--Each claim by a contractor against the 
        Federal Government relating to a contract and each claim by the 
        Federal Government against a contractor relating to a contract 
        shall be submitted within 6 years after the accrual of the 
        claim.
          (B) Exception.--Subparagraph (A) of this paragraph does not 
        apply to a claim by the Federal Government against a contractor 
        that is based on a claim by the contractor involving fraud.
      (5) Applicability.--The authority of this subsection and 
    subsections (c)(1), (d), and (e) does not extend to a claim or 
    dispute for penalties or forfeitures prescribed by statute or 
    regulation that another Federal agency is specifically authorized 
    to administer, settle, or determine.
  (b) Certification of Claims.--
      (1) Requirement generally.--For claims of more than $100,000 made 
    by a contractor, the contractor shall certify that--
          (A) the claim is made in good faith;
          (B) the supporting data are accurate and complete to the best 
        of the contractor's knowledge and belief;
          (C) the amount requested accurately reflects the contract 
        adjustment for which the contractor believes the Federal 
        Government is liable; and
          (D) the certifier is authorized to certify the claim on 
        behalf of the contractor.
      (2) Who may execute certification.--The certification required by 
    paragraph (1) may be executed by an individual authorized to bind 
    the contractor with respect to the claim.
      (3) Failure to certify or defective certification.--A contracting 
    officer is not obligated to render a final decision on a claim of 
    more than $100,000 that is not certified in accordance with 
    paragraph (1) if, within 60 days after receipt of the claim, the 
    contracting officer notifies the contractor in writing of the 
    reasons why any attempted certification was found to be defective. 
    A defect in the certification of a claim does not deprive a court 
    or an agency board of jurisdiction over the claim. Prior to the 
    entry of a final judgment by a court or a decision by an agency 
    board, the court or agency board shall require a defective 
    certification to be corrected.
  (c) Fraudulent Claims.--
      (1) No authority to settle.--This section does not authorize an 
    agency head to settle, compromise, pay, or otherwise adjust any 
    claim involving fraud.
      (2) Liability of contractor.--If a contractor is unable to 
    support any part of the contractor's claim and it is determined 
    that the inability is attributable to a misrepresentation of fact 
    or fraud by the contractor, then the contractor is liable to the 
    Federal Government for an amount equal to the unsupported part of 
    the claim plus all of the Federal Government's costs attributable 
    to reviewing the unsupported part of the claim. Liability under 
    this paragraph shall be determined within 6 years of the commission 
    of the misrepresentation of fact or fraud.
  (d) Issuance of Decision.--The contracting officer shall issue a 
decision in writing and shall mail or otherwise furnish a copy of the 
decision to the contractor.
  (e) Contents of Decision.--The contracting officer's decision shall 
state the reasons for the decision reached and shall inform the 
contractor of the contractor's rights as provided in this chapter. 
Specific findings of fact are not required. If made, specific findings 
of fact are not binding in any subsequent proceeding.
  (f) Time for Issuance of Decision.--
      (1) Claim of $100,000 or less.--A contracting officer shall issue 
    a decision on any submitted claim of $100,000 or less within 60 
    days from the contracting officer's receipt of a written request 
    from the contractor that a decision be rendered within that period.
      (2) Claim of more than $100,000.--A contracting officer shall, 
    within 60 days of receipt of a submitted certified claim over 
    $100,000--
          (A) issue a decision; or
          (B) notify the contractor of the time within which a decision 
        will be issued.
      (3) General requirement of reasonableness.--The decision of a 
    contracting officer on submitted claims shall be issued within a 
    reasonable time, in accordance with regulations prescribed by the 
    agency, taking into account such factors as the size and complexity 
    of the claim and the adequacy of information in support of the 
    claim provided by the contractor.
      (4) Requesting tribunal to direct issuance within specified time 
    period.--A contractor may request the tribunal concerned to direct 
    a contracting officer to issue a decision in a specified period of 
    time, as determined by the tribunal concerned, in the event of 
    undue delay on the part of the contracting officer.
      (5) Failure to issue decision within required time period.--
    Failure by a contracting officer to issue a decision on a claim 
    within the required time period is deemed to be a decision by the 
    contracting officer denying the claim and authorizes an appeal or 
    action on the claim as otherwise provided in this chapter. However, 
    the tribunal concerned may, at its option, stay the proceedings of 
    the appeal or action to obtain a decision by the contracting 
    officer.
  (g) Finality of Decision Unless Appealed.--The contracting officer's 
decision on a claim is final and conclusive and is not subject to 
review by any forum, tribunal, or Federal Government agency, unless an 
appeal or action is timely commenced as authorized by this chapter. 
This chapter does not prohibit an executive agency from including a 
clause in a Federal Government contract requiring that, pending final 
decision of an appeal, action, or final settlement, a contractor shall 
proceed diligently with performance of the contract in accordance with 
the contracting officer's decision.
  (h) Alternative Means of Dispute Resolution.--
      (1) In general.--Notwithstanding any other provision of this 
    chapter, a contractor and a contracting officer may use any 
    alternative means of dispute resolution under subchapter IV of 
    chapter 5 of title 5, or other mutually agreeable procedures, for 
    resolving claims. All provisions of subchapter IV of chapter 5 of 
    title 5 apply to alternative means of dispute resolution under this 
    subsection.
      (2) Certification of claim.--The contractor shall certify the 
    claim when required to do so under subsection (b)(1) or other law.
      (3) Rejecting request for alternative dispute resolution.--
          (A) Contracting officer.--A contracting officer who rejects a 
        contractor's request for alternative dispute resolution 
        proceedings shall provide the contractor with a written 
        explanation, citing one or more of the conditions in section 
        572(b) of title 5 or other specific reasons that alternative 
        dispute resolution procedures are inappropriate.
          (B) Contractor.--A contractor that rejects an agency's 
        request for alternative dispute resolution proceedings shall 
        inform the agency in writing of the contractor's specific 
        reasons for rejecting the request.

Sec. 7104. Contractor's right of appeal from decision by contracting 
            officer

  (a) Appeal to Agency Board.--A contractor, within 90 days from the 
date of receipt of a contracting officer's decision under section 7103 
of this title, may appeal the decision to an agency board as provided 
in section 7105 of this title.
  (b) Bringing an Action De Novo in Federal Court.--
      (1) In general.--Except as provided in paragraph (2), and in lieu 
    of appealing the decision of a contracting officer under section 
    7103 of this title to an agency board, a contractor may bring an 
    action directly on the claim in the United States Court of Federal 
    Claims, notwithstanding any contract provision, regulation, or rule 
    of law to the contrary.
      (2) Tennessee valley authority.--In the case of an action against 
    the Tennessee Valley Authority, the contractor may only bring an 
    action directly on the claim in a district court of the United 
    States pursuant to section 1337 of title 28, notwithstanding any 
    contract provision, regulation, or rule of law to the contrary.
      (3) Time for filing.--A contractor shall file any action under 
    paragraph (1) or (2) within 12 months from the date of receipt of a 
    contracting officer's decision under section 7103 of this title.
      (4) De novo.--An action under paragraph (1) or (2) shall proceed 
    de novo in accordance with the rules of the appropriate court.

Sec. 7105. Agency boards

  (a) Armed Services Board.--
      (1) Establishment.--An Armed Services Board of Contract Appeals 
    may be established within the Department of Defense when the 
    Secretary of Defense, after consultation with the Administrator, 
    determines from a workload study that the volume of contract claims 
    justifies the establishment of a full-time agency board of at least 
    3 members who shall have no other inconsistent duties. Workload 
    studies will be updated at least once every 3 years and submitted 
    to the Administrator.
      (2) Appointment of members and compensation.--Members of the 
    Armed Services Board shall be selected and appointed in the same 
    manner as administrative law judges appointed pursuant to section 
    3105 of title 5, with an additional requirement that members must 
    have had at least 5 years of experience in public contract law. The 
    Secretary of Defense shall designate the chairman and vice chairman 
    of the Armed Services Board from among the appointed members. 
    Compensation for the chairman, vice chairman, and other members 
    shall be determined under section 5372a of title 5.
  (b) Civilian Board.--
      (1) Establishment.--There is established in the General Services 
    Administration the Civilian Board of Contract Appeals.
      (2) Membership.--
          (A) Eligibility.--The Civilian Board consists of members 
        appointed by the Administrator of General Services (in 
        consultation with the Administrator for Federal Procurement 
        Policy) from a register of applicants maintained by the 
        Administrator of General Services, in accordance with rules 
        issued by the Administrator of General Services (in 
        consultation with the Administrator for Federal Procurement 
        Policy) for establishing and maintaining a register of eligible 
        applicants and selecting Civilian Board members. The 
        Administrator of General Services shall appoint a member 
        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 member.
          (B) Appointment of members and compensation.--Members of 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, with an additional requirement that 
        members must have had at least 5 years experience in public 
        contract law. Compensation for the members shall be determined 
        under section 5372a of title 5.
      (3) Removal.--Members of the Civilian Board are subject to 
    removal in the same manner as administrative law judges, as 
    provided in section 7521 of title 5.
      (4) Functions.--
          (A) In general.--The Civilian Board has jurisdiction as 
        provided by subsection (e)(1)(B).
          (B) Additional jurisdiction.--With the concurrence of the 
        Federal agencies affected, the Civilian Board may assume--
              (i) jurisdiction over any additional category of laws or 
            disputes over which an agency board of contract appeals 
            established pursuant to section 8 of the Contract Disputes 
            Act exercised jurisdiction before January 6, 2007; and
              (ii) any other function the agency board performed before 
            January 6, 2007, on behalf of those agencies.
  (c) Tennessee Valley Authority Board.--
      (1) Establishment.--The Board of Directors of the Tennessee 
    Valley Authority may establish a board of contract appeals of the 
    Tennessee Valley Authority of an indeterminate number of members.
      (2) Appointment of members and compensation.--The Board of 
    Directors of the Tennessee Valley Authority shall establish 
    criteria for the appointment of members to the agency board 
    established under paragraph (1), and shall designate a chairman of 
    the agency board. The chairman and other members of the agency 
    board shall receive compensation, at the daily equivalent of the 
    rates determined under section 5372a of title 5, for each day they 
    are engaged in the actual performance of their duties as members of 
    the agency board.
  (d) Postal Service Board.--
      (1) Establishment.--There is established an agency board of 
    contract appeals known as the Postal Service Board of Contract 
    Appeals.
      (2) Appointment and service of members.--The Postal Service Board 
    of Contract Appeals consists of judges appointed by the Postmaster 
    General. The judges shall meet the qualifications of and serve in 
    the same manner as members of the Civilian Board.
      (3) Application.--This chapter applies to contract disputes 
    before the Postal Service Board of Contract Appeals in the same 
    manner as it applies to contract disputes before the Civilian 
    Board.
  (e) Jurisdiction.--
      (1) In general.--
          (A) Armed services board.--The Armed Services Board has 
        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, the 
        Department of the Air Force, or the National Aeronautics and 
        Space Administration relative to a contract made by that 
        department or agency.
          (B) Civilian board.--The Civilian Board has 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 National Aeronautics and Space 
        Administration, the United States Postal Service, the Postal 
        Regulatory Commission, or the Tennessee Valley Authority) 
        relative to a contract made by that agency.
          (C) Postal service board.--The Postal Service Board of 
        Contract Appeals has jurisdiction to decide any appeal from a 
        decision of a contracting officer of the United States Postal 
        Service or the Postal Regulatory Commission relative to a 
        contract made by either agency.
          (D) Other agency boards.--Each other agency board has 
        jurisdiction to decide any appeal from a decision of a 
        contracting officer relative to a contract made by its agency.
      (2) Relief.--In exercising this jurisdiction, an agency board may 
    grant any relief that would be available to a litigant asserting a 
    contract claim in the United States Court of Federal Claims.
  (f) Subpoena, Discovery, and Deposition.--A member of an agency board 
of contract appeals may administer oaths to witnesses, authorize 
depositions and discovery proceedings, and require by subpoena the 
attendance of witnesses, and production of books and papers, for the 
taking of testimony or evidence by deposition or in the hearing of an 
appeal by the agency board. In case of contumacy or refusal to obey a 
subpoena by a person who resides, is found, or transacts business 
within the jurisdiction of a United States district court, the court, 
upon application of the agency board through the Attorney General, or 
upon application by the board of contract appeals of the Tennessee 
Valley Authority, shall have jurisdiction to issue the person an order 
requiring the person to appear before the agency board or a member of 
the agency board, to produce evidence or to give testimony, or both. 
Any failure of the person to obey the order of the court may be 
punished by the court as contempt of court.
  (g) Decisions.--An agency board shall--
      (1) to the fullest extent practicable provide informal, 
    expeditious, and inexpensive resolution of disputes;
      (2) issue a decision in writing or take other appropriate action 
    on each appeal submitted; and
      (3) mail or otherwise furnish a copy of the decision to the 
    contractor and the contracting officer.

Sec. 7106. Agency board procedures for accelerated and small claims

  (a) Accelerated Procedure Where $100,000 or Less in Dispute.--The 
rules of each agency board shall include a procedure for the 
accelerated disposition of any appeal from a decision of a contracting 
officer where the amount in dispute is $100,000 or less. The 
accelerated procedure is applicable at the sole election of the 
contractor. An appeal under the accelerated procedure shall be 
resolved, whenever possible, within 180 days from the date the 
contractor elects to use the procedure.
  (b) Small Claims Procedure.--
      (1) In general.--The rules of each agency board shall include a 
    procedure for the expedited disposition of any appeal from a 
    decision of a contracting officer where the amount in dispute is 
    $50,000 or less, or in the case of a small business concern (as 
    defined in the Small Business Act (15 U.S.C. 631 et seq.) and 
    regulations under that Act), $150,000 or less. The small claims 
    procedure is applicable at the sole election of the contractor.
      (2) Simplified rules of procedure.--The small claims procedure 
    shall provide for simplified rules of procedure to facilitate the 
    decision of any appeal. An appeal under the small claims procedure 
    may be decided by a single member of the agency board with such 
    concurrences as may be provided by rule or regulation.
      (3) Time of decision.--An appeal under the small claims procedure 
    shall be resolved, whenever possible, within 120 days from the date 
    the contractor elects to use the procedure.
      (4) Finality of decision.--A decision against the Federal 
    Government or against the contractor reached under the small claims 
    procedure is final and conclusive and may not be set aside except 
    in cases of fraud.
      (5) No precedent.--Administrative determinations and final 
    decisions under this subsection have no value as precedent for 
    future cases under this chapter.
      (6) Review of requisite amounts in controversy.--The 
    Administrator, from time to time, may review the dollar amounts 
    specified in paragraph (1) and adjust the amounts in accordance 
    with economic indexes selected by the Administrator.

Sec. 7107. Judicial review of agency board decisions

  (a) Review.--
      (1) In general.--The decision of an agency board is final, except 
    that--
          (A) a contractor may appeal the decision to the United States 
        Court of Appeals for the Federal Circuit within 120 days from 
        the date the contractor receives a copy of the decision; or
          (B) if an agency head determines that an appeal should be 
        taken, the agency head, with the prior approval of the Attorney 
        General, may transmit the decision to the United States Court 
        of Appeals for the Federal Circuit for judicial review under 
        section 1295 of title 28, within 120 days from the date the 
        agency receives a copy of the decision.
      (2) Tennessee valley authority.--Notwithstanding paragraph (1), a 
    decision of the board of contract appeals of the Tennessee Valley 
    Authority is final, except that--
          (A) a contractor may appeal the decision to a United States 
        district court pursuant to section 1337 of title 28, within 120 
        days from the date the contractor receives a copy of the 
        decision; or
          (B) the Tennessee Valley Authority may appeal the decision to 
        a United States district court pursuant to section 1337 of 
        title 28, within 120 days from the date of the decision.
      (3) Review of arbitration.--An award by an arbitrator under this 
    chapter shall be reviewed pursuant to sections 9 to 13 of title 9, 
    except that the court may set aside or limit any award that is 
    found to violate limitations imposed by Federal statute.
  (b) Finality of Agency Board Decisions on Questions of Law and 
Fact.--Notwithstanding any contract provision, regulation, or rule of 
law to the contrary, in an appeal by a contractor or the Federal 
Government from the decision of an agency board pursuant to subsection 
(a)--
      (1) the decision of the agency board on a question of law is not 
    final or conclusive; but
      (2) the decision of the agency board on a question of fact is 
    final and conclusive and may not be set aside unless the decision 
    is--
          (A) fraudulent, arbitrary, or capricious;
          (B) so grossly erroneous as to necessarily imply bad faith; 
        or
          (C) not supported by substantial evidence.
  (c) Remand.--In an appeal by a contractor or the Federal Government 
from the decision of an agency board pursuant to subsection (a), the 
court may render an opinion and judgment and remand the case for 
further action by the agency board or by the executive agency as 
appropriate, with direction the court considers just and proper.
  (d) Consolidation.--If 2 or more actions arising from one contract 
are filed in the United States Court of Federal Claims and one or more 
agency boards, for the convenience of parties or witnesses or in the 
interest of justice, the United States Court of Federal Claims may 
order the consolidation of the actions in that court or transfer any 
actions to or among the agency boards involved.
  (e) Judgments as to Fewer Than All Claims or Parties.--In an action 
filed pursuant to this chapter involving 2 or more claims, 
counterclaims, cross-claims, or third-party claims, and where a portion 
of one of the claims can be divided for purposes of decision or 
judgment, and in any action where multiple parties are involved, the 
court, whenever appropriate, may enter a judgment as to one or more but 
fewer than all of the claims or portions of claims or parties.
  (f) Advisory Opinions.--
      (1) In general.--Whenever an action involving an issue described 
    in paragraph (2) is pending in a district court of the United 
    States, the district court may request an agency board to provide 
    the court with an advisory opinion on the matters of contract 
    interpretation under consideration.
      (2) Applicable issue.--An issue referred to in paragraph (1) is 
    any issue that could be the proper subject of a final decision of a 
    contracting officer appealable under this chapter.
      (3) Referral to agency board with jurisdiction.--A district court 
    shall direct a request under paragraph (1) to the agency board 
    having jurisdiction under this chapter to adjudicate appeals of 
    contract claims under the contract being interpreted by the court.
      (4) Timely response.--After receiving a request for an advisory 
    opinion under paragraph (1), an agency board shall provide the 
    advisory opinion in a timely manner to the district court making 
    the request.

Sec. 7108. Payment of claims

  (a) Judgments.--Any judgment against the Federal Government on a 
claim under this chapter shall be paid promptly in accordance with the 
procedures provided by section 1304 of title 31.
  (b) Monetary Awards.--Any monetary award to a contractor by an agency 
board shall be paid promptly in accordance with the procedures 
contained in subsection (a).
  (c) Reimbursement.--Payments made pursuant to subsections (a) and (b) 
shall be reimbursed to the fund provided by section 1304 of title 31 by 
the agency whose appropriations were used for the contract out of 
available amounts or by obtaining additional appropriations for 
purposes of reimbursement.
  (d) Tennessee Valley Authority.--
      (1) Judgments.--Notwithstanding subsections (a) to (c), any 
    judgment against the Tennessee Valley Authority on a claim under 
    this chapter shall be paid promptly in accordance with section 9(b) 
    of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)).
      (2) Monetary awards.--Notwithstanding subsections (a) to (c), any 
    monetary award to a contractor by the board of contract appeals of 
    the Tennessee Valley Authority shall be paid in accordance with 
    section 9(b) of the Tennessee Valley Authority Act of 1933 (16 
    U.S.C. 831h(b)).

Sec. 7109. Interest

  (a) Period.--
      (1) In general.--Interest on an amount found due a contractor on 
    a claim shall be paid to the contractor for the period beginning 
    with the date the contracting officer receives the contractor's 
    claim, pursuant to section 7103(a) of this title, until the date of 
    payment of the claim.
      (2) Defective certification.--On a claim for which the 
    certification under section 7103(b)(1) of this title is found to be 
    defective, any interest due under this section shall be paid for 
    the period beginning with the date the contracting officer 
    initially receives the contractor's claim until the date of payment 
    of the claim.
  (b) Rate.--Interest shall accrue and be paid at a rate which the 
Secretary of the Treasury shall specify as applicable for each 
successive 6-month period. The rate shall be determined by the 
Secretary of the Treasury taking into consideration current private 
commercial rates of interest for new loans maturing in approximately 5 
years.

                       Subtitle IV--Miscellaneous

Chapter                                                             Sec.

Drug-Free Workplace.................................................8101
Buy American........................................................8301
Committee for Purchase From People Who Are Blind or Severely Disable8501
Kickbacks...........................................................8701

                    CHAPTER 81--DRUG-FREE WORKPLACE

Sec.
8101.  Definitions and construction.
8102.  Drug-free workplace requirements for Federal contractors.
8103.  Drug-free workplace requirements for Federal grant recipients.
8104.  Employee sanctions and remedies.
8105.  Waiver.
8106.  Regulations.

Sec. 8101. Definitions and construction

  (a) Definitions.--In this chapter:
      (1) Contractor.--The term ``contractor'' means the department, 
    division, or other unit of a person responsible for the performance 
    under the contract.
      (2) Controlled substance.--The term ``controlled substance'' 
    means a controlled substance in schedules I through V of section 
    202 of the Comprehensive Drug Abuse Prevention and Control Act of 
    1970 (21 U.S.C. 812).
      (3) Conviction.--The term ``conviction'' means a finding of guilt 
    (including a plea of nolo contendere), an imposition of sentence, 
    or both, by a judicial body charged with the responsibility to 
    determine violations of Federal or State criminal drug statutes.
      (4) Criminal drug statute.--The term ``criminal drug statute'' 
    means a criminal statute involving manufacture, distribution, 
    dispensation, use, or possession of a controlled substance.
      (5) Drug-free workplace.--The term ``drug-free workplace'' means 
    a site of an entity--
          (A) for the performance of work done in connection with a 
        specific contract or grant described in section 8102 or 8103 of 
        this title; and
          (B) at which employees of the entity are prohibited from 
        engaging in the unlawful manufacture, distribution, 
        dispensation, possession, or use of a controlled substance in 
        accordance with the requirements of the Anti-Drug Abuse Act of 
        1988 (Public Law 100-690, 102 Stat. 4181).
      (6) Employee.--The term ``employee'' means the employee of a 
    contractor or grantee directly engaged in the performance of work 
    pursuant to the contract or grant described in section 8102 or 8103 
    of this title.
      (7) Federal agency.--The term ``Federal agency'' means an agency 
    as defined in section 552(f) of title 5.
      (8) Grantee.--The term ``grantee'' means the department, 
    division, or other unit of a person responsible for the performance 
    under the grant.
  (b) Construction.--This chapter does not require law enforcement 
agencies to comply with this chapter if the head of the agency 
determines it would be inappropriate in connection with the agency's 
undercover operations.

Sec. 8102. Drug-free workplace requirements for Federal contractors

  (a) In General.--
      (1) Persons other than individuals.--A person other than an 
    individual shall not be considered a responsible source (as defined 
    in section 113 of this title) for the purposes of being awarded a 
    contract for the procurement of any property or services of a value 
    greater than the simplified acquisition threshold (as defined in 
    section 134 of this title) by a Federal agency, other than a 
    contract for the procurement of commercial items (as defined in 
    section 103 of this title), unless the person agrees to provide a 
    drug-free workplace by--
          (A) publishing a statement notifying employees that the 
        unlawful manufacture, distribution, dispensation, possession, 
        or use of a controlled substance is prohibited in the person's 
        workplace and specifying the actions that will be taken against 
        employees for violations of the prohibition;
          (B) establishing a drug-free awareness program to inform 
        employees about--
              (i) the dangers of drug abuse in the workplace;
              (ii) the person's policy of maintaining a drug-free 
            workplace;
              (iii) available drug counseling, rehabilitation, and 
            employee assistance programs; and
              (iv) the penalties that may be imposed on employees for 
            drug abuse violations;
          (C) making it a requirement that each employee to be engaged 
        in the performance of the contract be given a copy of the 
        statement required by subparagraph (A);
          (D) notifying the employee in the statement required by 
        subparagraph (A) that as a condition of employment on the 
        contract the employee will--
              (i) abide by the terms of the statement; and
              (ii) notify the employer of any criminal drug statute 
            conviction for a violation occurring in the workplace no 
            later than 5 days after the conviction;
          (E) notifying the contracting agency within 10 days after 
        receiving notice under subparagraph (D)(ii) from an employee or 
        otherwise receiving actual notice of a conviction;
          (F) imposing a sanction on, or requiring the satisfactory 
        participation in a drug abuse assistance or rehabilitation 
        program by, any employee who is convicted, as required by 
        section 8104 of this title; and
          (G) making a good faith effort to continue to maintain a 
        drug-free workplace through implementation of subparagraphs (A) 
        to (F).
      (2) Individuals.--A Federal agency shall not make a contract with 
    an individual unless the individual agrees not to engage in the 
    unlawful manufacture, distribution, dispensation, possession, or 
    use of a controlled substance in the performance of the contract.
  (b) Suspension, Termination, or Debarment of Contractor.--
      (1) Grounds for suspension, termination, or debarment.--Payment 
    under a contract awarded by a Federal agency may be suspended and 
    the contract may be terminated, and the contractor or individual 
    who made the contract with the agency may be suspended or debarred 
    in accordance with the requirements of this section, if the head of 
    the agency determines that--
          (A) the contractor is violating, or has violated, the 
        requirements of subparagraph (A), (B), (C), (D), (E), or (F) of 
        subsection (a)(1); or
          (B) the number of employees of the contractor who have been 
        convicted of violations of criminal drug statutes for 
        violations occurring in the workplace indicates that the 
        contractor has failed to make a good faith effort to provide a 
        drug-free workplace as required by subsection (a).
      (2) Conduct of suspension, termination, and debarment 
    proceedings.--A contracting officer who determines in writing that 
    cause for suspension of payments, termination, or suspension or 
    debarment exists shall initiate an appropriate action, to be 
    conducted by the agency concerned in accordance with the Federal 
    Acquisition Regulation and applicable agency procedures. The 
    Federal Acquisition Regulation shall be revised to include rules 
    for conducting suspension and debarment proceedings under this 
    subsection, including rules providing notice, opportunity to 
    respond in writing or in person, and other procedures as may be 
    necessary to provide a full and fair proceeding to a contractor or 
    individual.
      (3) Effect of debarment.--A contractor or individual debarred by 
    a final decision under this subsection is ineligible for award of a 
    contract by a Federal agency, and for participation in a future 
    procurement by a Federal agency, for a period specified in the 
    decision, not to exceed 5 years.

Sec. 8103. Drug-free workplace requirements for Federal grant 
            recipients

  (a) In General.--
      (1) Persons other than individuals.--A person other than an 
    individual shall not receive a grant from a Federal agency unless 
    the person agrees to provide a drug-free workplace by--
          (A) publishing a statement notifying employees that the 
        unlawful manufacture, distribution, dispensation, possession, 
        or use of a controlled substance is prohibited in the grantee's 
        workplace and specifying the actions that will be taken against 
        employees for violations of the prohibition;
          (B) establishing a drug-free awareness program to inform 
        employees about--
              (i) the dangers of drug abuse in the workplace;
              (ii) the grantee's policy of maintaining a drug-free 
            workplace;
              (iii) available drug counseling, rehabilitation, and 
            employee assistance programs; and
              (iv) the penalties that may be imposed on employees for 
            drug abuse violations;
          (C) making it a requirement that each employee to be engaged 
        in the performance of the grant be given a copy of the 
        statement required by subparagraph (A);
          (D) notifying the employee in the statement required by 
        subparagraph (A) that as a condition of employment in the grant 
        the employee will--
              (i) abide by the terms of the statement; and
              (ii) notify the employer of any criminal drug statute 
            conviction for a violation occurring in the workplace no 
            later than 5 days after the conviction;
          (E) notifying the granting agency within 10 days after 
        receiving notice under subparagraph (D)(ii) from an employee or 
        otherwise receiving actual notice of a conviction;
          (F) imposing a sanction on, or requiring the satisfactory 
        participation in a drug abuse assistance or rehabilitation 
        program by, any employee who is convicted, as required by 
        section 8104 of this title; and
          (G) making a good faith effort to continue to maintain a 
        drug-free workplace through implementation of subparagraphs (A) 
        to (F).
      (2) Individuals.--A Federal agency shall not make a grant to an 
    individual unless the individual agrees not to engage in the 
    unlawful manufacture, distribution, dispensation, possession, or 
    use of a controlled substance in conducting an activity with the 
    grant.
  (b) Suspension, Termination, or Debarment of Grantee.--
      (1) Grounds for suspension, termination, or debarment.--Payment 
    under a grant awarded by a Federal agency may be suspended and the 
    grant may be terminated, and the grantee may be suspended or 
    debarred, in accordance with the requirements of this section, if 
    the head of the agency or the official designee of the head of the 
    agency determines in writing that--
          (A) the grantee is violating, or has violated, the 
        requirements of subparagraph (A), (B), (C), (D), (E), (F), or 
        (G) of subsection (a)(1); or
          (B) the number of employees of the grantee who have been 
        convicted of violations of criminal drug statutes for 
        violations occurring in the workplace indicates that the 
        grantee has failed to make a good faith effort to provide a 
        drug-free workplace as required by subsection (a)(1).
      (2) Conduct of suspension, termination, and debarment 
    proceedings.--A suspension of payments, termination, or suspension 
    or debarment proceeding subject to this subsection shall be 
    conducted in accordance with applicable law, including Executive 
    Order 12549 or any superseding executive order and any regulations 
    prescribed to implement the law or executive order.
      (3) Effect of debarment.--A grantee debarred by a final decision 
    under this subsection is ineligible for award of a grant by a 
    Federal agency, and for participation in a future grant by a 
    Federal agency, for a period specified in the decision, not to 
    exceed 5 years.

Sec. 8104. Employee sanctions and remedies

  Within 30 days after receiving notice from an employee of a 
conviction pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) 
of this title, a contractor or grantee shall--
      (1) take appropriate personnel action against the employee, up to 
    and including termination; or
      (2) require the employee to satisfactorily participate in a drug 
    abuse assistance or rehabilitation program approved for those 
    purposes by a Federal, State, or local health, law enforcement, or 
    other appropriate agency.

Sec. 8105. Waiver

  (a) In General.--The head of an agency may waive a suspension of 
payments, termination of the contract or grant, or suspension or 
debarment of a contractor or grantee under this chapter with respect to 
a particular contract or grant if--
      (1) in the case of a contract, the head of the agency determines 
    under section 8102(b)(1) of this title, after a final determination 
    is issued under section 8102(b)(1), that suspension of payments, 
    termination of the contract, suspension or debarment of the 
    contractor, or refusal to permit a person to be treated as a 
    responsible source for a contract would severely disrupt the 
    operation of the agency to the detriment of the Federal Government 
    or the general public; or
      (2) in the case of a grant, the head of the agency determines 
    that suspension of payments, termination of the grant, or 
    suspension or debarment of the grantee would not be in the public 
    interest.
  (b) Waiver Authority May Not Be Delegated.--The authority of the head 
of an agency under this section to waive a suspension, termination, or 
debarment shall not be delegated.

Sec. 8106. Regulations

  Government-wide regulations governing actions under this chapter 
shall be issued pursuant to division B of subtitle I of this title.

                        CHAPTER 83--BUY AMERICAN

Sec.
8301.  Definitions.
8302.  American materials required for public use.
8303.  Contracts for public works.
8304.  Waiver rescission.
8305.  Annual report.

Sec. 8301. Definitions

  In this chapter:
      (1) Public building, public use, and public work.--The terms 
    ``public building'', ``public use'', and ``public work'' mean a 
    public building of, use by, and a public work of, the Federal 
    Government, the District of Columbia, Puerto Rico, American Samoa, 
    and the Virgin Islands.
      (2) United states.--The term ``United States'' includes any place 
    subject to the jurisdiction of the United States.

Sec. 8302. American materials required for public use

  (a) In General.--
      (1) Allowable materials.--Only unmanufactured articles, 
    materials, and supplies that have been mined or produced in the 
    United States, and only manufactured articles, materials, and 
    supplies that have been manufactured in the United States 
    substantially all from articles, materials, or supplies mined, 
    produced, or manufactured in the United States, shall be acquired 
    for public use unless the head of the department or independent 
    establishment concerned determines their acquisition to be 
    inconsistent with the public interest or their cost to be 
    unreasonable.
      (2) Exceptions.--This section does not apply--
          (A) to articles, materials, or supplies for use outside the 
        United States;
          (B) if articles, materials, or supplies of the class or kind 
        to be used, or the articles, materials, or supplies from which 
        they are manufactured, are not mined, produced, or manufactured 
        in the United States in sufficient and reasonably available 
        commercial quantities and are not of a satisfactory quality; 
        and
          (C) to manufactured articles, materials, or supplies procured 
        under any contract with an award value that is not more than 
        the micro-purchase threshold under section 1902 of this title.
  (b) Reports.--
      (1) In general.--Not later than 180 days after the end of each of 
    fiscal years 2009 through 2011, the head of each Federal agency 
    shall submit to the Committee on Homeland Security and Governmental 
    Affairs of the Senate and the Committee on Oversight and Government 
    Reform of the House of Representatives a report on the amount of 
    the acquisitions made by the agency in that fiscal year of 
    articles, materials, or supplies purchased from entities that 
    manufacture the articles, materials, or supplies outside of the 
    United States.
      (2) Contents of report.--The report required by paragraph (1) 
    shall separately include, for the fiscal year covered by the 
    report--
          (A) the dollar value of any articles, materials, or supplies 
        that were manufactured outside the United States;
          (B) an itemized list of all waivers granted with respect to 
        the articles, materials, or supplies under this chapter, and a 
        citation to the treaty, international agreement, or other law 
        under which each waiver was granted;
          (C) if any articles, materials, or supplies were acquired 
        from entities that manufacture articles, materials, or supplies 
        outside the United States, the specific exception under this 
        section that was used to purchase the articles, materials, or 
        supplies; and
          (D) a summary of--
              (i) the total procurement funds expended on articles, 
            materials, and supplies manufactured inside the United 
            States; and
              (ii) the total procurement funds expended on articles, 
            materials, and supplies manufactured outside the United 
            States.
      (3) Public availability.--The head of each Federal agency 
    submitting a report under paragraph (1) shall make the report 
    publicly available to the maximum extent practicable.
      (4) Exception for intelligence community.--This subsection shall 
    not apply to acquisitions made by an agency, or component of an 
    agency, that is an element of the intelligence community as 
    specified in, or designated under, section 3 of the National 
    Security Act of 1947 (50 U.S.C. 401a).

Sec. 8303. Contracts for public works

  (a) In General.--Every contract for the construction, alteration, or 
repair of any public building or public work in the United States shall 
contain a provision that in the performance of the work the contractor, 
subcontractors, material men, or suppliers shall use only--
      (1) unmanufactured articles, materials, and supplies that have 
    been mined or produced in the United States; and
      (2) manufactured articles, materials, and supplies that have been 
    manufactured in the United States substantially all from articles, 
    materials, or supplies mined, produced, or manufactured in the 
    United States.
  (b) Exceptions.--
      (1) In general.--This section does not apply--
          (A) to articles, materials, or supplies for use outside the 
        United States;
          (B) if articles, materials, or supplies of the class or kind 
        to be used, or the articles, materials, or supplies from which 
        they are manufactured, are not mined, produced, or manufactured 
        in the United States in sufficient and reasonably available 
        commercial quantities and are not of a satisfactory quality; 
        and
          (C) to manufactured articles, materials, or supplies procured 
        under any contract with an award value that is not more than 
        the micro-purchase threshold under section 1902 of this title.
      (2) Particular article, material, or supply.--If the head of the 
    department or independent establishment making the contract finds 
    that it is impracticable to comply with subsection (a) for a 
    particular article, material, or supply or that it would 
    unreasonably increase the cost, an exception shall be noted in the 
    specifications for that article, material, or supply and a public 
    record of the findings that justified the exception shall be made.
      (3) Inconsistent with public interest.--Subsection (a) shall be 
    regarded as requiring the purchase, for public use within the 
    United States, of articles, materials, or supplies manufactured in 
    the United States in sufficient and reasonably available commercial 
    quantities and of a satisfactory quality, unless the head of the 
    department or independent establishment concerned determines their 
    purchase to be inconsistent with the public interest or their cost 
    to be unreasonable.
  (c) Results of Failure To Comply.--If the head of a department, 
bureau, agency, or independent establishment that has made a contract 
containing the provision required by subsection (a) finds that there 
has been a failure to comply with the provision in the performance of 
the contract, the head of the department, bureau, agency, or 
independent establishment shall make the findings public. The findings 
shall include the name of the contractor obligated under the contract. 
The contractor, and any subcontractor, material man, or supplier 
associated or affiliated with the contractor, shall not be awarded 
another contract for the construction, alteration, or repair of any 
public building or public work for 3 years after the findings are made 
public.

Sec. 8304. Waiver rescission

  (a) Type of Agreement.--An agreement referred to in subsection (b) is 
a reciprocal defense procurement memorandum of understanding between 
the United States and a foreign country pursuant to which the Secretary 
of Defense has prospectively waived this chapter for certain products 
in that country.
  (b) Determination by Secretary of Defense.--If the Secretary of 
Defense, after consultation with the United States Trade 
Representative, determines that a foreign country that is party to an 
agreement described in subsection (a) has violated the agreement by 
discriminating against certain types of products produced in the United 
States that are covered by the agreement, the Secretary of Defense 
shall rescind the Secretary's blanket waiver of this chapter with 
respect to those types of products produced in that country.

Sec. 8305. Annual report

  Not later than 60 days after the end of each fiscal year, the 
Secretary of Defense shall submit to Congress a report on the amount of 
purchases by the Department of Defense from foreign entities in that 
fiscal year. The report shall separately indicate the dollar value of 
items for which this chapter was waived pursuant to--
      (1) a reciprocal defense procurement memorandum of understanding 
    described in section 8304(a) of this title;
      (2) the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.); or
      (3) an international agreement to which the United States is a 
    party.

    CHAPTER 85--COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR 
                           SEVERELY DISABLED

Sec.
8501.  Definitions.
8502.  Committee for Purchase From People Who Are Blind or Severely 
          Disabled.
8503.  Duties and powers of the Committee.
8504.  Procurement requirements for the Federal Government.
8505.  Audit.
8506.  Authorization of appropriations.

Sec. 8501. Definitions

  In this chapter:
      (1) Blind.--The term ``blind'' refers to an individual or class 
    of individuals whose central visual acuity does not exceed 20/200 
    in the better eye with correcting lenses or whose visual acuity, if 
    better than 20/200, is accompanied by a limit to the field of 
    vision in the better eye to such a degree that its widest diameter 
    subtends an angle of no greater than 20 degrees.
      (2) Committee.--The term ``Committee'' means the Committee for 
    Purchase From People Who Are Blind or Severely Disabled established 
    under section 8502 of this title.
      (3) Direct labor.--The term ``direct labor''--
          (A) includes all work required for preparation, processing, 
        and packing of a product, or work directly relating to the 
        performance of a service; but
          (B) does not include supervision, administration, inspection, 
        or shipping.
      (4) Entity of the federal government and federal government.--The 
    terms ``entity of the Federal Government'' and ``Federal 
    Government'' include an entity of the legislative or judicial 
    branch, a military department or executive agency (as defined in 
    sections 102 and 105 of title 5, respectively), the United States 
    Postal Service, and a nonappropriated fund instrumentality under 
    the jurisdiction of the Armed Forces.
      (5) Other severely disabled.--The term ``other severely 
    disabled'' means an individual or class of individuals under a 
    physical or mental disability, other than blindness, which 
    (according to criteria established by the Committee after 
    consultation with appropriate entities of the Federal Government 
    and taking into account the views of non-Federal Government 
    entities representing the disabled) constitutes a substantial 
    handicap to employment and is of a nature that prevents the 
    individual from currently engaging in normal competitive 
    employment.
      (6) Qualified nonprofit agency for other severely disabled.--The 
    term ``qualified nonprofit agency for other severely disabled'' 
    means an agency--
          (A)(i) organized under the laws of the United States or a 
        State;
          (ii) operated in the interest of severely disabled 
        individuals who are not blind; and
          (iii) of which no part of the net income of the agency inures 
        to the benefit of a shareholder or other individual;
          (B) that complies with any applicable occupational health and 
        safety standard prescribed by the Secretary of Labor; and
          (C) that in the production of products and in the provision 
        of services (whether or not the products or services are 
        procured under this chapter) during the fiscal year employs 
        blind or other severely disabled individuals for at least 75 
        percent of the hours of direct labor required for the 
        production or provision of the products or services.
      (7) Qualified nonprofit agency for the blind.--The term 
    ``qualified nonprofit agency for the blind'' means an agency--
          (A)(i) organized under the laws of the United States or a 
        State;
          (ii) operated in the interest of blind individuals; and
          (iii) of which no part of the net income of the agency inures 
        to the benefit of a shareholder or other individual;
          (B) that complies with any applicable occupational health and 
        safety standard prescribed by the Secretary of Labor; and
          (C) that in the production of products and in the provision 
        of services (whether or not the products or services are 
        procured under this chapter) during the fiscal year employs 
        blind individuals for at least 75 percent of the hours of 
        direct labor required for the production or provision of the 
        products or services.
      (8) Severely disabled individual.--The term ``severely disabled 
    individual'' means an individual or class of individuals under a 
    physical or mental disability, other than blindness, which 
    (according to criteria established by the Committee after 
    consultation with appropriate entities of the Federal Government 
    and taking into account the views of non-Federal Government 
    entities representing the disabled) constitutes a substantial 
    handicap to employment and is of a nature that prevents the 
    individual from currently engaging in normal competitive 
    employment.
      (9) State.--The term ``State'' includes the District of Columbia, 
    Puerto Rico, the Virgin Islands, Guam, American Samoa, and the 
    Northern Mariana Islands.

Sec. 8502. Committee for Purchase From People Who Are Blind or Severely 
            Disabled

  (a) Establishment.--There is a Committee for Purchase From People Who 
Are Blind or Severely Disabled.
  (b) Composition.--The Committee consists of 15 members appointed by 
the President as follows:
      (1) One officer or employee from each of the following, nominated 
    by the head of the department or agency:
          (A) The Department of Agriculture.
          (B) The Department of Defense.
          (C) The Department of the Army.
          (D) The Department of the Navy.
          (E) The Department of the Air Force.
          (F) The Department of Education.
          (G) The Department of Commerce.
          (H) The Department of Veterans Affairs.
          (I) The Department of Justice.
          (J) The Department of Labor.
          (K) The General Services Administration.
      (2) One member from individuals who are not officers or employees 
    of the Federal Government and who are conversant with the problems 
    incident to the employment of the blind.
      (3) One member from individuals who are not officers or employees 
    of the Federal Government and who are conversant with the problems 
    incident to the employment of other severely disabled individuals.
      (4) One member from individuals who are not officers or employees 
    of the Federal Government and who represent blind individuals 
    employed in qualified nonprofit agencies for the blind.
      (5) One member from individuals who are not officers or employees 
    of the Federal Government and who represent severely disabled 
    individuals (other than blind individuals) employed in qualified 
    nonprofit agencies for other severely disabled individuals.
  (c) Terms of Office.--Members appointed under paragraph (2), (3), 
(4), or (5) of subsection (b) shall be appointed for terms of 5 years 
and may be reappointed if the member meets the qualifications 
prescribed by those paragraphs.
  (d) Chairman.--The members of the Committee shall elect one of the 
members to be Chairman.
  (e) Vacancy.--
      (1) Manner in which filled.--A vacancy in the membership of the 
    Committee shall be filled in the manner in which the original 
    appointment was made.
      (2) Unfulfilled term.--A member appointed under paragraph (2), 
    (3), (4), or (5) of subsection (b) to fill a vacancy occurring 
    prior to the expiration of the term for which the predecessor was 
    appointed shall be appointed only for the remainder of the term. 
    The member may serve after the expiration of a term until a 
    successor takes office.
  (f) Pay and Travel Expenses.--
      (1) Amount to which members are entitled.--Except as provided in 
    paragraph (2), members of the Committee are entitled to receive the 
    daily equivalent of the maximum annual rate of basic pay payable 
    for level IV of the Executive Schedule for each day (including 
    travel-time) during which they perform services for the Committee. 
    A member is entitled to travel expenses, including a per diem 
    allowance instead of subsistence, as provided under section 5703 of 
    title 5.
      (2) Officers or employees of the federal government.--Members who 
    are officers or employees of the Federal Government may not receive 
    additional pay because of their service on the Committee.
   (g) Staff.--
      (1) Appointment and compensation.--Subject to rules the Committee 
    may adopt and to chapters 33 and 51 and subchapter III of chapter 
    53 of title 5, the Chairman may appoint and fix the pay of 
    personnel the Committee determines are necessary to assist it in 
    carrying out this chapter.
      (2) Personnel from other entities.--On request of the Committee, 
    the head of an entity of the Federal Government may detail, on a 
    reimbursable basis, any personnel of the entity to the Committee to 
    assist it in carrying out this chapter.
  (h) Obtaining Official Information.--The Committee may secure 
directly from an entity of the Federal Government information necessary 
to enable it to carry out this chapter. On request of the Chairman, the 
head of the entity shall furnish the information to the Committee.
  (i) Administrative Support Services.--The Administrator of General 
Services shall provide to the Committee, on a reimbursable basis, 
administrative support services the Committee requests.
  (j) Annual Report.--Not later than December 31 of each year, the 
Committee shall transmit to the President a report that includes the 
names of the Committee members serving in the prior fiscal year, the 
dates of Committee meetings in that year, a description of the 
activities of the Committee under this chapter in that year, and any 
recommendations for changes in this chapter which the Committee 
determines are necessary.

Sec. 8503. Duties and powers of the Committee

  (a) Procurement List.--
      (1) Maintenance of list.--The Committee shall maintain and 
    publish in the Federal Register a procurement list. The list shall 
    include the following products and services determined by the 
    Committee to be suitable for the Federal Government to procure 
    pursuant to this chapter:
          (A) Products produced by a qualified nonprofit agency for the 
        blind or by a qualified nonprofit agency for other severely 
        disabled.
          (B) The services those agencies provide.
      (2) Changes to list.--The Committee may, by rule made in 
    accordance with the requirements of section 553(b) to (e) of title 
    5, add to and remove from the procurement list products so produced 
    and services so provided.
  (b) Fair Market Price.--The Committee shall determine the fair market 
price of products and services contained on the procurement list that 
are offered for sale to the Federal Government by a qualified nonprofit 
agency for the blind or a qualified nonprofit agency for other severely 
disabled. The Committee from time to time shall revise its price 
determinations with respect to those products and services in 
accordance with changing market conditions.
  (c) Central Nonprofit Agency or Agencies.--The Committee shall 
designate a central nonprofit agency or agencies to facilitate the 
distribution, by direct allocation, subcontract, or any other means, of 
orders of the Federal Government for products and services on the 
procurement list among qualified nonprofit agencies for the blind or 
qualified nonprofit agencies for other severely disabled.
  (d) Regulations.--The Committee--
      (1) may prescribe regulations regarding specifications for 
    products and services on the procurement list, the time of their 
    delivery, and other matters as necessary to carry out this chapter; 
    and
      (2) shall prescribe regulations providing that when the Federal 
    Government purchases products produced and offered for sale by 
    qualified nonprofit agencies for the blind or qualified nonprofit 
    agencies for other severely disabled, priority shall be given to 
    products produced and offered for sale by qualified nonprofit 
    agencies for the blind.
  (e) Study and Evaluation of Activities.--The Committee shall make a 
continuing study and evaluation of its activities under this chapter to 
ensure effective and efficient administration of this chapter. The 
Committee on its own or in cooperation with other public or nonprofit 
private agencies may study--
      (1) problems related to the employment of the blind and other 
    severely disabled individuals; and
      (2) the development and adaptation of production methods that 
    would enable a greater utilization of the blind and other severely 
    disabled individuals.

Sec. 8504. Procurement requirements for the Federal Government

  (a) In General.--An entity of the Federal Government intending to 
procure a product or service on the procurement list referred to in 
section 8503 of this title shall procure the product or service from a 
qualified nonprofit agency for the blind or a qualified nonprofit 
agency for other severely disabled in accordance with regulations of 
the Committee and at the price the Committee establishes if the product 
or service is available within the period required by the entity.
  (b) Exception.--This section does not apply to the procurement of a 
product that is available from an industry established under chapter 
307 of title 18 and that is required under section 4124 of title 18 to 
be procured from that industry.

Sec. 8505. Audit

  For the purpose of audit and examination, the Comptroller General 
shall have access to the books, documents, papers, and other records 
of--
      (1) the Committee and of each central nonprofit agency the 
    Committee designates under section 8503(c) of this title; and
      (2) qualified nonprofit agencies for the blind and qualified 
    nonprofit agencies for other severely disabled that have sold 
    products or services under this chapter to the extent those books, 
    documents, papers, and other records relate to the activities of 
    the agency in a fiscal year in which a sale was made under this 
    chapter.

Sec. 8506. Authorization of appropriations

  Necessary amounts may be appropriated to the Committee to carry out 
this chapter.

                         CHAPTER 87--KICKBACKS

Sec.
8701.  Definitions.
8702.  Prohibited conduct.
8703.  Contractor responsibilities.
8704.  Inspection authority.
8705.  Administrative offsets.
8706.  Civil actions.
8707.  Criminal penalties.

Sec. 8701. Definitions

  In this chapter:
      (1) Contracting agency.--The term ``contracting agency'', when 
    used with respect to a prime contractor, means a department, 
    agency, or establishment of the Federal Government that enters into 
    a prime contract with a prime contractor.
      (2) Kickback.--The term ``kickback'' means any money, fee, 
    commission, credit, gift, gratuity, thing of value, or compensation 
    of any kind that is provided to a prime contractor, prime 
    contractor employee, subcontractor, or subcontractor employee to 
    improperly obtain or reward favorable treatment in connection with 
    a prime contract or a subcontract relating to a prime contract.
      (3) Person.--The term ``person'' means a corporation, 
    partnership, business association of any kind, trust, joint-stock 
    company, or individual.
      (4) Prime contract.--The term ``prime contract'' means a contract 
    or contractual action entered into by the Federal Government to 
    obtain supplies, materials, equipment, or services of any kind.
      (5) Prime contractor.--The term ``prime contractor'' means a 
    person that has entered into a prime contract with the Federal 
    Government.
      (6) Prime contractor employee.--The term ``prime contractor 
    employee'' means an officer, partner, employee, or agent of a prime 
    contractor.
      (7) Subcontract.--The term ``subcontract'' means a contract or 
    contractual action entered into by a prime contractor or 
    subcontractor to obtain supplies, materials, equipment, or services 
    of any kind under a prime contract.
      (8) Subcontractor.--The term ``subcontractor''--
          (A) means a person, other than the prime contractor, that 
        offers to furnish or furnishes supplies, materials, equipment, 
        or services of any kind under a prime contract or a subcontract 
        entered into in connection with the prime contract; and
          (B) includes a person that offers to furnish or furnishes 
        general supplies to the prime contractor or a higher tier 
        subcontractor.
      (9) Subcontractor employee.--The term ``subcontractor employee'' 
    means an officer, partner, employee, or agent of a subcontractor.

Sec. 8702. Prohibited conduct

  A person may not--
      (1) provide, attempt to provide, or offer to provide a kickback;
      (2) solicit, accept, or attempt to accept a kickback; or
      (3) include the amount of a kickback prohibited by paragraph (1) 
    or (2) in the contract price--
          (A) a subcontractor charges a prime contractor or a higher 
        tier subcontractor; or
          (B) a prime contractor charges the Federal Government.

Sec. 8703. Contractor responsibilities

  (a) Requirements Included in Contracts.--Each contracting agency 
shall include in each prime contract awarded by the agency a 
requirement that the prime contractor shall--
      (1) have in place and follow reasonable procedures designed to 
    prevent and detect violations of section 8702 of this title in its 
    own operations and direct business relationships; and
      (2) cooperate fully with a Federal Government agency 
    investigating a violation of section 8702 of this title.
  (b) Full Cooperation Required.--Notwithstanding subsection (d), a 
prime contractor shall cooperate fully with a Federal Government agency 
investigating a violation of section 8702 of this title.
  (c) Reporting Requirement.--
      (1) In general.--A prime contractor or subcontractor that has 
    reasonable grounds to believe that a violation of section 8702 of 
    this title may have occurred shall promptly report the possible 
    violation in writing to the inspector general of the contracting 
    agency, the head of the contracting agency if the agency does not 
    have an inspector general, or the Attorney General.
      (2) Supplying information as favorable evidence.--In an 
    administrative or contractual action to suspend or debar a person 
    who is eligible to enter into contracts with the Federal 
    Government, evidence that the person has supplied information to 
    the Federal Government pursuant to paragraph (1) is favorable 
    evidence of the person's responsibility for the purposes of Federal 
    procurement laws and regulations.
  (d) Inapplicability to Certain Prime Contracts.--Subsection (a) does 
not apply to a prime contract--
      (1) that is not greater than $100,000; or
      (2) for the acquisition of commercial items (as defined in 
    section 103 of this title).

Sec. 8704. Inspection authority

  (a) In General.--To ascertain whether there has been a violation of 
section 8702 of this title with respect to a prime contract, the 
Comptroller General and the inspector general of the contracting 
agency, or a representative of the contracting agency designated by the 
head of the agency if the agency does not have an inspector general, 
shall have access to and may inspect the facilities and audit the books 
and records, including electronic data or records, of a prime 
contractor or subcontractor under a prime contract awarded by the 
agency.
  (b) Exception.--This section does not apply to a prime contract for 
the acquisition of commercial items (as defined in section 103 of this 
title).

Sec. 8705. Administrative offsets

  (a) Definition.--In this section, the term ``contracting officer'' 
has the meaning given that term in chapter 71 of this title.
  (b) Offset Authority.--A contracting officer of a contracting agency 
may offset the amount of a kickback provided, accepted, or charged in 
violation of section 8702 of this title against amounts the Federal 
Government owes the prime contractor under the prime contract to which 
the kickback relates.
  (c) Duties of Prime Contractor.--
      (1) Withholding and paying over or retaining amounts.--On 
    direction of a contracting officer of a contracting agency with 
    respect to a prime contract, the prime contractor shall withhold 
    from amounts owed to a subcontractor under a subcontract of the 
    prime contract the amount of a kickback which was or may be offset 
    against the prime contractor under subsection (b). The contracting 
    officer may order that amounts withheld--
          (A) be paid over to the contracting agency; or
          (B) be retained by the prime contractor if the Federal 
        Government has already offset the amount against the prime 
        contractor.
      (2) Notice.--The prime contractor shall notify the contracting 
    officer when an amount is withheld and retained under paragraph 
    (1)(B).
  (d) Offset, Direction, or Order is Claim of Federal Government.--An 
offset under subsection (b) or a direction or order of a contracting 
officer under subsection (c) is a claim by the Federal Government for 
the purposes of chapter 71 of this title.

Sec. 8706. Civil actions

  (a) Amount.--The Federal Government in a civil action may recover 
from a person--
      (1) that knowingly engages in conduct prohibited by section 8702 
    of this title a civil penalty equal to--
          (A) twice the amount of each kickback involved in the 
        violation; and
          (B) not more than $10,000 for each occurrence of prohibited 
        conduct; and
      (2) whose employee, subcontractor, or subcontractor employee 
    violates section 8702 of this title by providing, accepting, or 
    charging a kickback a civil penalty equal to the amount of that 
    kickback.
  (b) Statute of Limitations.--A civil action under this section must 
be brought within 6 years after the later of the date on which--
      (1) the prohibited conduct establishing the cause of action 
    occurred; or
      (2) the Federal Government first knew or should reasonably have 
    known that the prohibited conduct had occurred.

Sec. 8707. Criminal penalties

  A person that knowingly and willfully engages in conduct prohibited 
by section 8702 of this title shall be fined under title 18, imprisoned 
for not more than 10 years, or both.

SEC. 4. CONFORMING AMENDMENT.

  Section 2410i(b)(1) of title 10, United States Code, is amended by 
striking ``small purchase threshold'' and substituting ``simplified 
acquisition threshold''.

SEC. 5. CONFORMING CROSS-REFERENCES.

  (a) Title 5.--Title 5, United States Code, is amended as follows:
      (1) In section 504(b)(1)(C)(ii)--
          (A) strike ``section 6 of the Contract Disputes Act of 1978 
        (41 U.S.C. 605)'' and substitute ``section 7103 of title 41''; 
        and
          (B) strike ``section 8 of that Act (41 U.S.C. 607)'' and 
        substitute ``section 7105 of title 41''.
      (2) In section 551(1)(H), strike ``chapter 2 of title 41;''.
      (3) In section 701(b)(1)(H), strike ``chapter 2 of title 41;''.
      (4) In section 3109(b)(3), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (5) In section 3374(c)(2), strike ``section 27 of the Office of 
    Federal Procurement Policy Act'' and substitute ``chapter 21 of 
    title 41''.
      (6) In section 3704(b)(2)(G), strike ``section 27 of the Office 
    of Federal Procurement Policy Act'' and substitute ``chapter 21 of 
    title 41''.
      (7) In section 4105, strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (8) In section 5102(c)(30), strike ``section 8 of the Contract 
    Disputes Act of 1978'' and substitute ``section 7105(a)(2), (c)(2), 
    or (d)(2) of title 41''.
      (9) In section 5372a--
          (A) in subsection (a)(1)--
              (i) strike ``section 8 of the Contract Disputes Act of 
            1978'' and substitute ``section 7105(a)(2), (c)(2), or 
            (d)(2) of title 41''; and
              (ii) strike ``section 42 of the Office of Federal 
            Procurement Policy Act'' and substitute ``section 
            7105(b)(2) of title 41''; and
          (B) in subsection (a)(2), strike ``section 8 of the Contract 
        Disputes Act of 1978'' and substitute ``section 7105(a)(1), 
        (c)(1), or (d)(1) of title 41''.
      (10) In section 7342(e)(1), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (11) In section 8709(a), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (12) In section 8714a(a), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (13) In section 8714b(a), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (14) In section 8714c(a), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (15) In section 8902(a), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (16) In section 8953(a)(1), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (17) In section 8983(a)(1), strike ``section 5'' and substitute 
    ``section 6101(b) to (d)''.
      (18) In section 9003--
          (A) in subsection (a), strike ``section 5'' and substitute 
        ``section 6101(b) to (d)'';
          (B) in subsection (c)(3), before subparagraph (A), strike 
        ``the Contract Disputes Act of 1978'' and substitute ``chapter 
        71 of title 41'';
          (C) in subsection (c)(3)(A), strike ``(after appropriate 
        arrangements, as described in section 8(c) of such Act)''; and
          (D) in subsection (c)(3)(B), strike ``section 10(a)(1) of 
        such Act'' and substitute ``section 7104(b)(1) of title 41''.
      (19) In section 9009, strike ``section 26(f) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 422(f))'' and substitute 
    ``section 1502(a) and (b) of title 41''.
  (b) Title 10.--Title 10, United States Code, is amended as follows:
      (1) In section 133(c)(1), strike ``section 16(c) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 414(c))'' and substitute 
    ``section 1702(c) of title 41''.
      (2) In section 2013(a), strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b)-(d) of 
    title 41''.
      (3) In section 2194(b)(2), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (4) In section 2201--
          (A) in subsection (b), strike ``section 3732(a) of the 
        Revised Statutes (41 U.S.C. 11(a))'' and substitute ``section 
        6301(a) and (b)(1)-(3) of title 41''; and
          (B) in subsection (c), strike ``section 3732(a) of the 
        Revised Statutes (41 U.S.C. 11(a))'' and substitute ``section 
        6301(a) and (b)(1)-(3) of title 41''.
      (5) In section 2207(b), strike ``section 4(11) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 403(11))'' and substitute 
    ``section 134 of title 41''.
      (6) In section 2225(f)--
          (A) in paragraph (1), strike ``section 16(c) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 414(c))'' and 
        substitute ``section 1702(c) of title 41''; and
          (B) in paragraph (2), strike ``section 4(11) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(11))'' and 
        substitute ``section 134 of title 41''.
      (7) In section 2226(b), strike ``section 4(12) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 403(12))'' and substitute 
    ``section 103 of title 41''.
      (8) In section 2302--
          (A) in paragraph (3), strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``chapter 1 of title 41'';
          (B) in paragraph (6), strike ``section 25(c)(1) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 421(c)(1))'' and 
        substitute ``section 1303(a)(1) of title 41''; and
          (C) in paragraph (7), strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``section 134 of title 41''.
      (9) In section 2302a--
          (A) in subsection (a), strike ``section 4(11) of the Office 
        of Federal Procurement Policy Act'' and substitute ``section 
        134 of title 41''; and
          (B) in subsection (b), strike ``section 33 of the Office of 
        Federal Procurement Policy Act'' and substitute ``section 1905 
        of title 41''.
      (10) In section 2302b, strike ``section 31 of the Office of 
    Federal Procurement Policy Act'' and substitute ``section 1901 of 
    title 41''.
      (11) In section 2302c--
          (A) in subsection (a)(1), strike ``section 30 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 426)'' and 
        substitute ``section 2301 of title 41''; and
          (B) in subsection (b), strike ``section 16(c) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 414(c))'' and 
        substitute ``section 1702(c) of title 41''.
      (12) In section 2304--
          (A) in subsection (f)(1)(B)(iii), strike ``section 16(c) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 
        414(c))'' and substitute ``section 1702(c) of title 41'';
          (B) in subsection (f)(1)(C), strike ``section 18 of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 416)'' and 
        substitute ``section 1708 of title 41'';
          (C) in subsection (f)(2)(D), strike ``the Javits-Wagner-O'Day 
        Act (41 U.S.C. 46 et seq.)'' and substitute ``chapter 85 of 
        title 41'';
          (D) in subsection (g)(4), strike ``section 31(f) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 427)'' and 
        substitute ``section 1901(e) of title 41''; and
          (E) in subsection (h)(1), strike ``The Walsh-Healey Act (41 
        U.S.C. 35 et seq.)'' and substitute ``Chapter 65 of title 41''.
      (13) In section 2304b--
          (A) in subsection (c), strike ``section 18 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 416)'' and substitute 
        ``section 1708 of title 41''; and
          (B) in subsection (f)(3), strike ``section 18 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 416)'' and 
        substitute ``section 1708 of title 41''.
      (14) In section 2304c(a)(1), strike ``section 18 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 416)'' and substitute 
    ``section 1708 of title 41''.
      (15) In section 2306a(h)(3), strike ``section 4(12) of the Office 
    of Federal Procurement Policy Act (41 U.S.C. 403(12))'' and 
    substitute ``section 103 of title 41''.
      (16) In section 2314, strike ``Sections 3709 and 3735 of the 
    Revised Statutes (41 U.S.C. 5 and 13)'' and substitute ``Sections 
    6101(b)-(d) and 6304 of title 41''.
      (17) In section 2318--
          (A) in subsection (a)(1), strike ``section 20(a) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 418(a))'' 
        and substitute ``section 1705(a) of title 41''; and
          (B) in subsection (a)(2), strike ``sections 20(b) and 20(c) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        418(b), (c))'' and substitute ``section 1705(b) and (c) of 
        title 41''.
      (18) In section 2321(h), strike ``the Contract Disputes Act of 
    1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 of title 
    41''.
      (19) In section 2324--
          (A) in subsection (d)(1), strike ``section 6 of the Contract 
        Disputes Act of 1978 (41 U.S.C. 605)'' and substitute ``section 
        7103 of title 41'';
          (B) in subsection (d)(2), strike ``section 7 of such Act (41 
        U.S.C. 606)'' and substitute ``section 7104(a) of title 41'';
          (C) in subsection (e)(1)(P), strike ``section 39 of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 435)'' and 
        substitute ``section 1127 of title 41''; and
          (D) in subsection (e)(2)(C), strike ``(41 U.S.C. 10b-1)'' and 
        substitute ``(as added by section 7002(2) of the Omnibus Trade 
        and Competitiveness Act of 1988)''.
      (20) In section 2343, strike ``section 3741 of the Revised 
    Statutes (41 U.S.C. 22)'' and substitute ``section 6306 of title 
    41''.
      (21) In section 2375(b), strike ``section 34 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 430)'' and substitute 
    ``section 1906 of title 41''.
      (22) In section 2376(1), strike ``section 4 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
    ``chapter 1 of title 41''.
      (23) In section 2384--
          (A) in subsection (b)(2), strike ``section 4(12) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(12)))'' 
        and substitute ``section 103 of title 41)''; and
          (B) in subsection (b)(3), strike ``section 4(11) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(11)))'' 
        and substitute ``section 134 of title 41)''.
      (24) In section 2393(d)--
          (A) strike ``section 4(11) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(11)))'' and substitute 
        ``section 134 of title 41)''; and
          (B) strike ``section 4(12) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(12)))'' and substitute 
        ``section 103 of title 41)''.
      (25) In section 2402--
          (A) in subsection (c), strike ``section 4(11) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(11)))'' and 
        substitute ``section 134 of title 41)''; and
          (B) in subsection (d)(2), strike ``section 4(12) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(12))'' 
        and substitute ``section 103 of title 41''.
      (26) In section 2408--
          (A) in subsection (a)(4)(A), strike ``section 4(11) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(11)))'' 
        and substitute ``section 134 of title 41)''; and
          (B) in subsection (a)(4)(B), strike ``section 4(12) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(12)))'' 
        and substitute ``section 103 of title 41)''.
      (27) In section 2410(c), strike ``section 4(11) of the Office of 
    Federal Procurement Policy Act'' and substitute ``section 134 of 
    title 41''.
      (28) In section 2410b(c), strike ``section 4(12) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 403(12)))'' and 
    substitute ``section 103 of title 41)''.
      (29) In section 2410d--
          (A) in subsection (b)(2)(A), strike ``section 5(3) of the 
        Javits-Wagner-O'Day Act (41 U.S.C. 48b(3))'' and substitute 
        ``section 8501(7) of title 41'';
          (B) in subsection (b)(2)(B), strike ``handicapped, as defined 
        in section 5(4) of such Act (41 U.S.C. 48b(4))'' and substitute 
        ``disabled, as defined in section 8501(6) of title 41''; and
          (C) in subsection (b)(2)(C), strike ``section 2(c) of such 
        Act (41 U.S.C. 47(c))'' and substitute ``section 8503(c) of 
        title 41''.
      (30) In section 2410g(d)(1), strike ``section 4(12) of the Office 
    of Federal Procurement Policy Act (41 U.S.C. 403(12)))'' and 
    substitute ``section 103 of title 41)''.
      (31) In section 2410i(b)(1), strike ``section 4(11) of the Office 
    of Federal Procurement Policy Act (41 U.S.C. 403(11)))'' and 
    substitute ``section 134 of title 41)''.
      (32) In section 2410m--
          (A) in subsection (a), before paragraph (1), strike ``the 
        Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.)'' and 
        substitute ``chapter 71 of title 41'';
          (B) in subsection (a)(2), strike ``section 7 of such Act (41 
        U.S.C. 606)'' and substitute ``section 7104(a) of title 41''; 
        and
          (C) in subsection (b)(1)(A), strike ``section 10(a) of the 
        Contract Disputes Act of 1978 (41 U.S.C. 609(a))'' and 
        substitute ``section 7104(b) of title 41''.
      (33) In section 2457(e), strike ``section 2 of the Buy American 
    Act (41 U.S.C. 10a)'' and substitute ``section 8302 of title 41''.
      (34) In section 2461(c)(1), strike ``section 2 of the Javits-
    Wagner-O'Day Act (41 U.S.C. 47)'' and substitute ``section 8503 of 
    title 41''.
      (35) In section 2485(b)(1), strike ``section 4(6) of the Office 
    of Federal Procurement Policy Act (41 U.S.C. 403(6))'' and 
    substitute ``section 107 of title 41''.
      (36) In the chapter analysis for subchapter V of chapter 148, in 
    the item for section 2533, strike ``the Buy American Act'' and 
    substitute ``chapter 83 of title 41''.
      (37) In section 2533--
          (A) in the section catchline, strike ``the Buy American Act'' 
        and substitute ``chapter 83 of title 41''; and
          (B) in subsection (a), strike ``section 2 of the Buy American 
        Act (41 U.S.C. 10a)'' and substitute ``section 8302 of title 
        41''.
      (38) In section 2533a(i), strike ``section 34 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 430)'' and substitute 
    ``section 1906 of title 41''.
      (39) In section 2533b--
          (A) in subsection (h), strike ``section 34 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 430)'' and substitute 
        ``section 1906 of title 41''; and
          (B) in subsection (j), strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``section 105 of title 41''.
      (40) In section 2534(g)(2), strike ``section 33 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 429)'' and substitute 
    ``section 1905 of title 41''.
      (41) In section 2562(a)(1), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (42) In section 2576(a), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (43) In section 2636(b)(3), strike ``section 4(11) of the Office 
    of Federal Procurement Policy Act (41 U.S.C. 403(11))'' and 
    substitute ``section 134 of title 41''.
      (44) In section 2667(f)(1), strike ``Notwithstanding subsection 
    (a)(3) or subtitle I of title 40 and title III of the Federal 
    Property and Administrative Services Act of 1949 (to the extent 
    subtitle I and title III are inconsistent with this subsection)'' 
    and substitute ``Notwithstanding subtitle I of title 40 and 
    division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 
    4711) of subtitle I of title 41 (to the extent those provisions are 
    inconsistent with this subsection) or subsection (a)(2) of this 
    section''.
      (45) In section 2664(a), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949, as amended (41 
    U.S.C. 251 et seq.)'' and substitute ``division C (except sections 
    3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
    41''.
      (46) In section 2691(b), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (47) In section 2696(a), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (48) In section 2836(g), strike ``the Contract Disputes Act of 
    1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 of title 
    41''.
      (49) In section 2854a(d)(1), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (50) In section 2878(d)(2), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (51) In the chapter analysis for chapter 633, in the item for 
    section 7299, strike ``Walsh-Healey Act'' and substitute ``chapter 
    65 of title 41''.
      (52) In section 7299--
          (A) in the heading, strike ``Walsh-Healey Act'' and 
        substitute ``chapter 65 of title 41''; and
          (B) strike ``the Walsh-Healey Act (41 U.S.C. 35 et seq.)'' 
        and substitute ``chapter 65 of title 41''.
      (53) In section 7305(d)--
          (A) strike ``title III of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
        and substitute ``division C (except sections 3302, 3501(b), 
        3509, 3906, 4710, and 4711) of subtitle I of title 41''; and
          (B) strike ``under subtitle I of title 40 and such title 
        III'' and substitute ``under those provisions''.
      (54) In section 9444(b)(1), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (55) In section 9781(g), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
  (c) Title 14.--Title 14, United States Code, is amended as follows:
      (1) In section 92(d), strike ``title III of the Federal Property 
    and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
    and substitute ``division C (except sections 3302, 3501(b), 3509, 
    3906, 4710, and 4711) of subtitle I of title 41''.
      (2) In section 93(h), strike ``title III of the Federal Property 
    and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
    and substitute ``division C (except sections 3302, 3501(b), 3509, 
    3906, 4710, and 4711) of subtitle I of title 41''.
      (3) In section 641(a), strike ``title III of the Federal Property 
    and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
    and substitute ``division C (except sections 3302, 3501(b), 3509, 
    3906, 4710, and 4711) of subtitle I of title 41''.
      (4) In section 685(c)(1), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
  (d) Title 18.--Title 18, United States Code, is amended as follows:
      (1) In section 3672, strike ``section 3709 of the Revised 
    Statutes of the United States'' and substitute ``section 6101(b) to 
    (d) of title 41''.
      (2) In section 4124(c), strike ``section 6(d)(4) of the Office of 
    Federal Procurement Policy Act'' and substitute ``section 
    1122(a)(4) of title 41''.
  (e) Title 23.--Title 23, United States Code, is amended as follows:
      (1) In section 140--
          (A) in subsection (b), strike ``section 3709 of the Revised 
        Statutes, as amended (41 U.S.C. 5),'' and substitute ``section 
        6101(b) to (d) of title 41''; and
          (B) in subsection (c)--
              (i) strike ``section 3709 of the Revised Statutes, as 
            amended (41 U.S.C. 5),'' and substitute ``section 6101(b) 
            to (d) of title 41''; and
              (ii) strike ``section 302(e) of the Federal Property and 
            Administrative Services Act of 1949 (41 U.S.C. 252(e))'' 
            and substitute ``section 3106 of title 41''.
      (2) In section 502(c)(5), strike ``Section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of 
    title 41''.
  (f) The Internal Revenue Code of 1986.--Section 7608(c)(1) of the 
Internal Revenue Code of 1986 (26 U.S.C. 7608(c)(1)) is amended--
      (1) in subparagraph (A)(i)(II), by striking ``sections 11(a) and 
    22'' and substituting ``sections 6301(a) and (b)(1)-(3) and 6306'';
      (2) in subparagraph (A)(i)(III), by striking ``section 255'' and 
    substituting ``chapter 45''; and
      (3) in subparagraph (A)(i)(V), by striking ``section 254(a) and 
    (c)'' and substituting ``section 3901''.
  (g) Title 28.--Title 28, United States Code, is amended as follows:
      (1) In the last sentence of section 524(c)(1), strike ``section 
    3709 of the Revised Statutes of the United States (41 U.S.C. 5), 
    title III of the Federal Property and Administrative Services Act 
    of 1949 (41 U.S.C. 251 and following)'' and substitute ``division C 
    (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of 
    subtitle I of title 41, section 6101(b) to (d) of title 41''.
      (2) In section 604(a)(10)(C), strike ``section 3709 of the 
    Revised Statutes of the United States (41 U.S.C. 5)'' and 
    substitute ``section 6101(b) to (d) of title 41''.
      (3) In section 624(3), strike ``section 3709 of the Revised 
    Statutes, as amended (41 U.S.C. 5)'' and substitute ``section 
    6101(b) to (d) of title 41''.
      (4) In section 753(g), strike ``section 3709 of the Revised 
    Statutes of the United States, as amended (41 U.S.C. 5)'' and 
    substitute ``section 6101(b) to (d) of title 41''.
      (5) In section 1295--
          (A) in subsection (a)(10), strike ``section 8(g)(1) of the 
        Contract Disputes Act of 1978 (41 U.S.C. 607(g)(1))'' and 
        substitute ``section 7107(a)(1) of title 41'';
          (B) in subsection (b), strike ``section 10(b) of the Contract 
        Disputes Act of 1978 (41 U.S.C. 609(b))'' and substitute 
        ``section 7107(b) of title 41''; and
          (C) in subsection (c), strike ``section 10(b) of the Contract 
        Disputes Act of 1978'' and substitute ``section 7107(b) of 
        title 41''.
      (6) In section 1346(a)(2), strike ``sections 8(g)(1) and 10(a)(1) 
    of the Contract Disputes Act of 1978'' and substitute ``sections 
    7104(b)(1) and 7107(a)(1) of title 41''.
      (7) In section 1491(a)(2), strike ``section 10(a)(1) of the 
    Contract Disputes Act of 1978'' and substitute ``section 7104(b)(1) 
    of title 41''.
      (8) In section 2401(a), strike ``the Contract Disputes Act of 
    1978'' and substitute ``chapter 71 of title 41''.
      (9) In section 2412--
          (A) in subsection (d)(2)(E), strike ``the Contract Disputes 
        Act of 1978'' and substitute ``chapter 71 of title 41''; and
          (B) in subsection (d)(3), strike ``the Contract Disputes Act 
        of 1978'' and substitute ``chapter 71 of title 41''.
      (10) In section 2414, strike ``the Contract Disputes Act of 
    1978'' and substitute ``chapter 71 of title 41''.
      (11) In section 2517(a), strike ``the Contract Disputes Act of 
    1978'' and substitute ``chapter 71 of title 41''.
  (h) Title 31.--Title 31, United States Code, is amended as follows:
      (1) In section 506, strike ``section 5(a) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 404(a))'' and substitute 
    ``section 1101(a) of title 41''.
      (2) In section 731(i)(7), strike ``section 27 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 423)'' and substitute 
    ``chapter 21 of title 41''.
      (3) In section 781(c)(1), strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
      (4) Section 1344(h)(2)(A) is amended to read as follows:
          ``(A) a department--
              ``(i) including independent establishments, other 
            agencies, and wholly owned Government corporations; but
              ``(ii) not including the Senate, House of 
            Representatives, or Architect of the Capitol, or the 
            officers or employees thereof;''.
      (5) In section 3567, strike ``section 4(1) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 403(1))'' and substitute 
    ``section 133 of title 41''.
      (6) In section 3718(b)(1)(A), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 and 
    following)'' and substitute ``division C (except sections 3302, 
    3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (7) In section 3902(a), strike ``section 12 of the Contract 
    Disputes Act of 1978 (41 U.S.C. 611)'' and substitute ``section 
    7109(a)(1) and (b) of title 41''.
      (8) In section 3907--
          (A) in subsection (a), strike ``section 6 of the Contract 
        Disputes Act of 1978 (41 U.S.C. 605)'' and substitute ``section 
        7103 of title 41'';
          (B) in subsection (b)(1)(A), strike ``the Contract Disputes 
        Act of 1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 
        71 of title 41'';
          (C) in subsection (b)(2)--
              (i) strike ``section 12 of the Contract Disputes Act of 
            1978 (41 U.S.C. 611)'' and substitute ``section 7109(a)(1) 
            and (b) of title 41''; and
              (ii) in the second sentence, strike ``section 12'' and 
            substitute ``section 7109(a)(1) and (b)''; and
          (D) in subsection (c), strike ``the Contract Disputes Act of 
        1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 of 
        title 41''.
      (9) In section 6202(c)(2), strike ``section 6(d)(5) of the Office 
    of Federal Procurement Policy Act (41 U.S.C. 405(d)(5))'' and 
    substitute ``section 1122(a)(4) of title 41''.
      (10) In section 9703(b)(3), as added by section 638(b)(1) of the 
    Act of October 6, 1992 (Public Law 102-393, 106 Stat. 1779), strike 
    ``section 3709 of the Revised Statutes of the United States (41 
    U.S.C. 5), title III of the Federal Property and Administrative 
    Services Act of 1949 (41 U.S.C. 251 et seq.)'' and substitute 
    ``division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 
    4711) of subtitle I of title 41, section 6101(b) to (d) of title 
    41''.
  (i) Title 35.--Title 35, United States Code, is amended as follows:
      (1) In section 2(b)(4)(A), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (2) In section 203(b), strike ``the Contract Disputes Act (41 
    U.S.C. Sec. 601 et seq.)'' and substitute ``chapter 71 of title 
    41''.
  (j) Title 38.--Title 38, United States Code, is amended as follows:
      (1) In section 1720(c)(2), strike ``section 2(b)(1) of the 
    Service Contract Act of 1965 (41 U.S.C. 351(b)(1))'' and substitute 
    ``section 6704(a) of title 41''.
      (2) In section 1966(a), strike ``section 3709 of the Revised 
    Statutes, as amended (41 U.S.C. 5)'' and substitute ``section 
    6101(b) to (d) of title 41''.
      (3) In section 3720(b), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (4) In section 7317(f), strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
      (5) In section 7802(f), strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
      (6) In section 8122--
          (A) in subsection (a)(1), strike ``section 3709 of the 
        Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
        6101(b) to (d) of title 41''; and
          (B) in subsection (c)--
              (i) strike ``(41 U.S.C. 252(c))''; and
              (ii) strike ``section 304 of that Act (41 U.S.C. 254)'' 
            and substitute ``sections 3901 and 3905 of title 41''.
      (7) In section 8127--
          (A) in subsection (b), strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``section 134 of title 41''; and
          (B) in subsection (c)(2), strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``section 134 of title 41''.
      (8) In section 8153(a)--
          (A) in paragraph (3)(B)(ii), strike ``section 22 of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 418b)'' and 
        substitute ``section 1707 of title 41''; and
          (B) in paragraph (3)(D), strike ``section 303(f) of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 253(f))'' and substitute ``section 3304(e) of title 
        41''.
      (9) In section 8201(e), strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
  (k) Title 39.--Section 410(b) of title 39, United States Code, is 
amended by striking paragraph (5) and substituting--
      ``(5) chapters 65 and 67 of title 41;''.
  (l) Title 40.--Title 40, United States Code, is amended as follows:
      (1) In the chapter analysis for chapter 1, in item 111, strike 
    ``Federal Property and Administrative Services Act of 1949'' and 
    substitute ``division C (except sections 3302, 3501(b), 3509, 3906, 
    4710, and 4711) of subtitle I of title 41''.
      (2) In section 102, before paragraph (1), strike ``title III of 
    the Federal Property and Administrative Services Act of 1949 (41 
    U.S.C. 251 et seq.)'' and substitute ``division C (except sections 
    3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
    41''.
      (3) In section 111--
          (A) in the section catchline, strike ``Federal Property and 
        Administrative Services Act of 1949'' and substitute ``division 
        C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) 
        of subtitle I of title 41''; and
          (B) before paragraph (1), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
      (4) In section 113(b)--
          (A) in the heading, strike ``the Office of Federal 
        Procurement Policy Act'' and substitute ``Division B (Except 
        Sections 1704 and 2303) of Subtitle I of Title 41''; and
          (B) strike ``the Office of Federal Procurement Policy Act (41 
        U.S.C. 401 et seq.)'' and substitute ``division B (Except 
        Sections 1704 and 2303) of subtitle I of title 41''.
      (5) In section 311--
          (A) in subsection (a), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''; and
          (B) in subsection (b), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
      (6) In section 501(b)(2)(B), strike ``the Office of Federal 
    Procurement Policy Act (41 U.S.C. 401 et seq.)'' and substitute 
    ``division B (except sections 1704 and 2303) of subtitle I of title 
    41''.
      (7) In section 502--
          (A) in subsection (b)(1)(A)(i), strike ``section 5(3) of the 
        Javits-Wagner-O'Day Act (41 U.S.C. 48b(3))'' and substitute 
        ``section 8501(7) of title 41'';
          (B) in subsection (b)(1)(A)(ii), strike ``handicapped (as 
        defined in section 5(4) of the Javits-Wagner-O'Day Act (41 
        U.S.C. 48b(4)))'' and substitute ``disabled (as defined in 
        section 8501(6) of title 41)'';
          (C) in subsection (b)(1)(B), strike ``the Javits-Wagner-O'Day 
        Act (41 U.S.C. 46 et seq.)'' and substitute ``chapter 85 of 
        title 41''; and
          (D) in subsection (b)(2), strike ``section 2 of the Javits-
        Wagner-O'Day Act (41 U.S.C. 47)'' and substitute ``section 8503 
        of title 41''.
      (8) In section 503(b)--
          (A) in paragraph (1), strike ``the Office of Federal 
        Procurement Policy Act (41 U.S.C. 401 et seq.)'' and substitute 
        ``division B (except sections 1704 and 2303) of subtitle I of 
        title 41''; and
          (B) in paragraph (3)--
              (i) in the heading, strike ``Section 3709 of revised 
            statutes'' and substitute ``Section 6101(b) to (d) of title 
            41''; and
              (ii) strike ``Section 3709 of the Revised Statutes (41 
            U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of 
            title 41''.
      (9) In section 506(a)(1)(D), strike ``the Office of Federal 
    Procurement Policy Act (41 U.S.C. 401 et seq.)'' and substitute 
    ``division B (except sections 1704 and 2303) of subtitle I of title 
    41''.
      (10) In section 545(f), strike ``Section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b)-(d) of 
    title 41''.
      (11) In section 593(a)(2), strike ``the Javits-Wagner-O'Day Act 
    (41 U.S.C. 46 et seq.)'' and substitute ``chapter 85 of title 41''.
      (12) In section 1305, strike ``title III of the Federal Property 
    and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
    and substitute ``division C (except sections 3302, 3501(b), 3509, 
    3906, 4710, and 4711) of subtitle I of title 41''.
      (13) In section 1308, strike ``title III of the Federal Property 
    and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
    and substitute ``division C (except sections 3302, 3501(b), 3509, 
    3906, 4710, and 4711) of subtitle I of title 41''.
      (14) In section 3148, strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
      (15) In section 3304(d)(2), strike ``title III of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
    seq.)'' and substitute ``division C (except sections 3302, 3501(b), 
    3509, 3906, 4710, and 4711) of subtitle I of title 41''.
      (16) In section 3305(a)--
          (A) in paragraph (1), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''; and
          (B) in paragraph (2), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
      (17) In section 3308(a), strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
      (18) In section 3310(2), strike ``section 303 of the Federal 
    Property and Administrative Services Act of 1949 (41 U.S.C. 253)'' 
    and substitute ``sections 3105, 3301, and 3303 to 3305 of title 
    41''.
      (19) In section 3701(b)(3)(A)(ii), strike ``the Walsh-Healey Act 
    (41 U.S.C. 35 et seq.)'' and substitute ``chapter 65 of title 41''.
      (20) In section 3704(b)(1), strike ``sections 4 and 5 of the 
    Walsh-Healey Act (41 U.S.C. 38, 39)'' and substitute ``sections 
    6506 and 6507 of title 41''.
      (21) In section 3707, strike ``section 4 of the Office of Federal 
    Procurement Policy Act (41 U.S.C. 403)'' and substitute ``section 
    103 of title 41''.
      (22) In section 6111(b)(2)(D), strike ``section 3709 of the 
    Revised Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) 
    to (d) of title 41''.
      (23) In section 8711(d), strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
      (24) In section 11101--
          (A) in paragraph (1), strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``section 103 of title 41''; and
          (B) in paragraph (2), strike ``section 4 of the Act (41 
        U.S.C. 403)'' and substitute ``section 133 of title 41''.
  (m) Title 44.--Title 44, United States Code, is amended as follows:
      (1) In the chapter analysis for chapter 3, in the item for 
    section 311, strike ``the Federal Property and Administrative 
    Services Act'' and substitute ``subtitle I of title 40 and division 
    C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of 
    subtitle I of title 41''.
      (2) In section 311--
          (A) in the section catchline, strike ``the Federal Property 
        and Administrative Services Act'' and substitute ``subtitle I 
        of title 40 and division C (except sections 3302, 3501(b), 
        3509, 3906, 4710, and 4711) of subtitle I of title 41'';
          (B) in subsection (a), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''; and
          (C) in subsection (c), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to 
        (d) of title 41''.
  (n) Title 46.--Section 51703(b)(2) of title 46, United States Code, 
is amended by striking ``section 3709 of the Revised Statutes (41 
U.S.C. 5)'' and substituting ``section 6101(b) to (d) of title 41''.
  (o) Title 49.--Title 49, United States Code, is amended as follows:
      (1) In section 103(e), strike ``title III of the Federal Property 
    and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
    and substitute ``division C (except sections 3302, 3501(b), 3509, 
    3906, 4710, and 4711) of subtitle I of title 41''.
      (2) In section 1113(b)(1)(B) strike ``section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) of 
    title 41''.
      (3) In section 5334(j)(2), strike ``Section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of 
    title 41''.
      (4) In section 10721, strike ``Section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of 
    title 41''.
      (5) In section 13712, strike ``Section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of 
    title 41''.
      (6) In section 15504, strike ``Section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of 
    title 41''.
      (7) In section 40110--
          (A) in subsection (d)(2)(A), strike ``Title III of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 252-266)'' and substitute ``Division C (except sections 
        3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of 
        title 41'';
          (B) in subsection (d)(2)(B), strike ``The Office of Federal 
        Procurement Policy Act (41 U.S.C. 401 et seq.)'' and substitute 
        ``Division B (except sections 1704 and 2303) of subtitle I of 
        title 41'';
          (C) in subsection (d)(2)(C), strike ``, except for section 
        315 (41 U.S.C. 265). For the purpose of applying section 315 of 
        that Act to the system,'' and substitute ``. However, section 
        4705 of title 41 shall apply to the new acquisition management 
        system developed and implemented pursuant to paragraph (1). For 
        the purpose of applying section 4705 of title 41 to the 
        system,''; and
          (D) in subsection (d)(3)--
              (i) in the heading, strike ``the office of federal 
            procurement policy act'' and substitute ``division b 
            (except sections 1704 and 2303) of subtitle i of title 
            41'';
              (ii) before subparagraph (A), strike ``section 27 of the 
            Office of Federal Procurement Policy Act (41 U.S.C. 423)'' 
            and substitute ``chapter 21 of title 41''; and
              (iii) in subparagraph (A), strike ``Subsections (f) and 
            (g)'' and substitute ``Sections 2101 and 2106 of title 
            41''.
      (8) In section 40118(f)(2), strike ``section 4(12) of the Office 
    of Federal Procurement Policy Act (41 U.S.C. 403(12))'' and 
    substitute ``section 103 of title 41''.
      (9) In section 47305(d), strike ``Section 3709 of the Revised 
    Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of 
    title 41''.

SEC. 6. TRANSITIONAL AND SAVINGS PROVISIONS.

  (a) Cutoff Date.--This Act replaces certain provisions of law enacted 
on or before December 31, 2008. If a law enacted after that date amends 
or repeals a provision replaced by this Act, that law is deemed to 
amend or repeal, as the case may be, the corresponding provision 
enacted by this Act. If a law enacted after that date is otherwise 
inconsistent with this Act, it supersedes this Act to the extent of the 
inconsistency.
  (b) Original Date of Enactment Unchanged.--For purposes of 
determining whether one provision of law supersedes another based on 
enactment later in time, the date of enactment of a provision enacted 
by this Act is deemed to be the date of enactment of the provision it 
replaced.
  (c) References to Provisions Replaced.--A reference to a provision of 
law replaced by this Act, including a reference in a regulation, order, 
or other law, is deemed to refer to the corresponding provision enacted 
by this Act.
  (d) Regulations, Orders, and Other Administrative Actions.--A 
regulation, order, or other administrative action in effect under a 
provision of law replaced by this Act continues in effect under the 
corresponding provision enacted by this Act.
  (e) Actions Taken and Offenses Committed.--An action taken or an 
offense committed under a provision of law replaced by this Act is 
deemed to have been taken or committed under the corresponding 
provision enacted by this Act.
  (f) Effective Dates for Certain Actions.--
      (1) Issue policy.--The requirement in section 2303(b)(1) of title 
    41, United States Code, to issue a policy shall be done not later 
    than 270 days after October 14, 2008.
      (2) Revisions in federal procurement data system or successor 
    system.--The requirement in section 2311 of title 41, United States 
    Code, to direct appropriate revisions in the Federal Procurement 
    Data System or any successor system shall be done not later than 
    one year after October 14, 2008.
      (3) Establish database.--The requirement in section 2313(a) of 
    title 41, United States Code, to establish a database shall be done 
    not later than one year after October 14, 2008.
      (4) Amend federal acquisition regulation within one year after 
    october 14, 2008.--The Federal Acquisition Regulation shall be 
    amended to meet the requirements of sections 2313(f), 3302(b) and 
    (d), 4710(b), and 4711(b) of title 41, United States Code, not 
    later than one year after October 14, 2008.
      (5) Amend federal acquisition regulation within 270 days after 
    october 14, 2008.--The Federal Acquisition Regulation shall be 
    amended to meet the requirements of section 3906(b) of title 41, 
    United States Code, not later than 270 days after October 14, 2008.

SEC. 7. REPEALS.

  (a) Inference of Repeal.--The repeal of a law by this Act may not be 
construed as a legislative inference that the provision was or was not 
in effect before its repeal.
  (b) Repealer Schedule.--The laws specified in the following schedule 
are repealed, except for rights and duties that matured, penalties that 
were incurred, and proceedings that were begun before the date of 
enactment of this Act.

                                                                Schedule of Laws Repealed
                                                                    Statutes at Large
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Statutes at Large          U.S. Code (title 41 unless otherwise
                                                                                 -------------------------------                specified)
               Date                 Chapter or Public Law         Section                                       ----------------------------------------
                                                                                  Volume           Page                  Existing            Proposed
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
               1875
Mar. 3............................  133..................  2....................      18  455..................                       10  ..............
 
               1884
July 7............................  332..................  (words after ``fifty       23  204..................                       24            6308
                                                            five thousand
                                                            dollars'' in 3d par.
                                                            under heading
                                                            ``Miscellaneous
                                                            Objects Under the
                                                            Treasury
                                                            Department'').
 
               1920
June 5............................  240..................  (last par. under           41  975..................                       23            6307
                                                            heading ``Purchase
                                                            of Articles
                                                            Manufactured at
                                                            Government
                                                            Arsenals'').
 
               1921
June 30...........................  33...................  1 (last proviso on p.      42  78...................                      11a            6302
                                                            78).
 
               1922
July 1............................  259..................  (1st proviso on p.         42  812..................                       23            6307
                                                            812).
 
               1926
May 13............................  294..................  (4th complete par.         44  547..................                      16c  ..............
                                                            (related to R.S.
                                                            Sec. 3741) on p.
                                                            547).
 
               1927
Jan. 12...........................  27...................  (2d complete par.          44  936..................                      16a  ..............
                                                            (related to R.S.
                                                            Sec. 3741) on p.
                                                            936).
 
               1933
Mar. 3............................  212..................  title III, Sec. 1....      47  1520.................                      10c            8301
                                     ....................  title III, Sec. 2....      47  1520.................                      10a            8302
                                     ....................  title III, Sec. 3....      47  1520.................                      10b            8303
                                     ....................  title III, Sec. 4....  ......  .....................                    10b-1  ..............
June 16...........................  101..................  5....................      48  305..................                      24a  ..............
 
               1934
Jan. 25...........................  5....................  (related to R.S. Sec.      48  337..................                       22            6306
                                                            3741).
June 16...........................  553..................  1-6..................      48  974..................                    28-33  ..............
 
               1935
Aug. 29...........................  815..................  .....................      49  990..................                       34  ..............
 
               1936
June 30...........................  881..................  1 (matter before           49  2036.................                       35            6502
                                                            subsec. (a) less
                                                            words related to
                                                            definition of
                                                            ``agency of the
                                                            United States'').
                                     ....................  1 (matter before           49  2036.................                       35            6501
                                                            subsec. (a) related
                                                            to definition of
                                                            ``agency of the
                                                            United States'').
                                     ....................  1(a)-(d).............      49  2036.................                       35            6502
                                     ....................  2....................      49  2037.................                       36            6503
                                     ....................  3....................      49  2037.................                       37            6504
                                     ....................  4....................      49  2038.................                       38            6506
                                     ....................  5....................      49  2038.................                       39            6507
                                     ....................  6....................      49  2038.................                       40            6508
                                     ....................  7....................      49  2039.................                       41            6501
                                     ....................  8....................      49  2039.................                       42            6511
                                     ....................  9....................      49  2039.................                       43            6505
                                     ....................  10(a)................  ......  .....................                      43a            6509
                                     ....................  10(b) (1st sentence).  ......  .....................                      43a            6507
                                     ....................  10(b) (last            ......  .....................                      43a            6509
                                                            sentence), (c).
                                     ....................  11...................  ......  .....................                      43b            6510
                                     ....................  12...................      49  2039.................                       44  ..............
                                     ....................  13...................      49  2039.................                       45            6502
 
               1938
June 25...........................  697..................  1....................      52  1196.................                       46            8502
                                     ....................  2....................      52  1196.................                       47            8503
                                     ....................  3....................      52  1196.................                       48            8504
                                     ....................  4....................      52  1196.................                      48a            8505
                                     ....................  5....................      52  1196.................                      48b            8501
                                     ....................  6....................      52  1196.................                      48c            8506
                                     ....................  7....................  ......  .....................                  46 note  ..............
 
               1939
Aug. 4............................  418..................  13 (related to R.S.        53  1197.................                      16d  ..............
                                                            Sec. 3744).
 
               1940
June 18...........................  396..................  (last par. (related        54  474..................                      6kk  ..............
                                                            to R.S. Sec. 3709)
                                                            under heading
                                                            ``Botanic Garden'').
                                     ....................  (last par. (related        54  474..................                      16b  ..............
                                                            to R.S. Sec. 3744)
                                                            under heading
                                                            ``Botanic Garden'').
June 24...........................  412..................  .....................      54  504..................                       6b            6102
Oct. 10...........................  851..................  2(a).................      54  1110.................                       6a            6102
                                     ....................  2(f).................      54  1110.................                       6a            6102
                                     ....................  2(h).................      54  1110.................                       6a            6102
                                     ....................  2(j).................      54  1110.................                       6a            6102
                                     ....................  3(a).................      54  1111.................                       6b  ..............
                                     ....................  3(b).................      54  1111.................                       6b  ..............
 
               1942
June 22...........................  432..................  1....................      56  375..................                       49            6309
                                     ....................  2....................      56  376..................                       50            6309
July 2............................  472..................  (1st complete par. on      56  493..................                        6  ..............
                                                            p. 493).
 
               1944
July 1............................  358..................  1, 2(a)..............      58  649..................                 101, 102  ..............
                                     ....................  3....................      58  650..................                      103  ..............
                                     ....................  4(b)-13(c)...........      58  651..................                  104-113  ..............
                                     ....................  13(d)................      58  662..................                      113  ..............
                                     ....................  13(e)-15.............      58  662..................                  113-115  ..............
                                     ....................  17, 18(a)............      58  665..................                 117, 118  ..............
                                     ....................  18(c)-(e)............      58  666..................                      118  ..............
                                     ....................  19(c)................      58  667..................                      119  ..............
                                     ....................  20-25................      58  668..................                  120-125  ..............
                                     ....................  26...................      58  671..................                 101 note  ..............
                                     ....................  27...................      58  671..................                 101 note  ..............
 
               1946
Mar. 8............................  80...................  1....................      60  37...................                       51  ..............
                                     ....................  2....................      60  37...................                       52            8701
                                     ....................  3....................      60  37...................                       53            8702
                                     ....................  4....................      60  37...................                       54            8707
                                     ....................  5....................      60  37...................                       55            8706
                                     ....................  6....................      60  37...................                       56            8705
                                     ....................  7....................      60  37...................                       57            8703
                                     ....................  8....................      60  37...................                       58            8704
Aug. 2............................  744..................  9(c).................      60  809..................                        5            6101
                                     ....................  18...................      60  811..................                       5a            6101
 
               1949
June 30...........................  288..................  301..................      63  393..................                      251  ..............
                                     ....................  302(a)...............      63  393..................                      252            3101
                                     ....................  302(b)...............      63  393..................                      252            3104
                                     ....................  302(c)(1)............      63  393..................                      252            3106
                                     ....................  302(c)(2)............  ......  .....................                      252            3301
                                     ....................  302A, 302B...........  ......  .....................               252a, 252b            3101
                                     ....................  302C.................  ......  .....................                     252c            4709
                                     ....................  303(a)...............      63  395..................                      253            3301
                                     ....................  303(b)...............      63  395..................                      253            3303
                                     ....................  303(c)-(f)...........      63  395..................                      253            3304
                                     ....................  303(g)...............      63  395..................                      253            3305
                                     ....................  303(h)...............  ......  .....................                      253            3301
                                     ....................  303(i)...............  ......  .....................                      253            3105
                                     ....................  303(j)...............  ......  .....................                      253            3304
                                     ....................  303A.................  ......  .....................                     253a            3306
                                     ....................  303B(a), (b).........  ......  .....................                     253b            3701
                                     ....................  303B(c)..............  ......  .....................                     253b            3702
                                     ....................  303B(d)..............  ......  .....................                     253b            3703
                                     ....................  303B(e)..............  ......  .....................                     253b            3704
                                     ....................  303B(f)..............  ......  .....................                     253b            3705
                                     ....................  303B(g)..............  ......  .....................                     253b      3704, 3705
                                     ....................  303B(h)..............  ......  .....................                     253b            3706
                                     ....................  303B(i)..............  ......  .....................                     253b            3707
                                     ....................  303B(j)..............  ......  .....................                     253b            3308
                                     ....................  303B(k), (l).........  ......  .....................                     253b            3708
                                     ....................  303B(m)..............  ......  .....................                     253b            4702
                                     ....................  303C.................  ......  .....................                     253c            3311
                                     ....................  303D.................  ......  .....................                     253d            4703
                                     ....................  303F.................  ......  .....................                     253f            3310
                                     ....................  303G.................  ......  .....................                     253g            4704
                                     ....................  303H.................  ......  .....................                     253h            4103
                                     ....................  303I.................  ......  .....................                     253i            4105
                                     ....................  303J.................  ......  .....................                     253j            4106
                                     ....................  303K.................  ......  .....................                     253k            4101
                                     ....................  303L.................  ......  .....................                     253l            3902
                                     ....................  303M.................  ......  .....................                     253m            3309
                                     ....................  304(a)...............      63  395..................                      254            3901
                                     ....................  304(b)...............      63  395..................                      254            3905
                                     ....................  304A(a)..............  ......  .....................                     254b            3502
                                     ....................  304A(b)..............  ......  .....................                     254b            3503
                                     ....................  304A(c)..............  ......  .....................                     254b            3504
                                     ....................  304A(d)..............  ......  .....................                     254b            3505
                                     ....................  304A(e)..............  ......  .....................                     254b            3506
                                     ....................  304A(f)..............  ......  .....................                     254b            3507
                                     ....................  304A(g)..............  ......  .....................                     254b            3508
                                     ....................  304A(h)..............  ......  .....................                     254b            3501
                                     ....................  304B.................  ......  .....................                     254c            3903
                                     ....................  304C.................  ......  .....................                     254d            4706
                                     ....................  305(a)...............      63  396..................                      255            4501
                                     ....................  305(b)...............  ......  .....................                      255            4502
                                     ....................  305(c)...............      63  396..................                      255            4502
                                     ....................  305(d)...............      63  396..................                      255            4503
                                     ....................  305(e)...............  ......  .....................                      255            4504
                                     ....................  305(f)...............  ......  .....................                      255            4505
                                     ....................  305(g)...............  ......  .....................                      255            4506
                                     ....................  306(a)-(d)...........  ......  .....................                      256            4303
                                     ....................  306(e)...............  ......  .....................                      256            4304
                                     ....................  306(f)...............  ......  .....................                      256            4305
                                     ....................  306(g)...............  ......  .....................                      256            4306
                                     ....................  306(h)...............  ......  .....................                      256            4307
                                     ....................  306(i)...............  ......  .....................                      256            4308
                                     ....................  306(j)...............  ......  .....................                      256            4309
                                     ....................  306(k)...............  ......  .....................                      256            4310
                                     ....................  306(l)(1)............  ......  .....................                      256            4301
                                     ....................  306(l)(2)............  ......  .....................                      256            4302
                                     ....................  306(m)...............  ......  .....................                      256            4301
                                     ....................  307..................      63  396..................                      257            4701
                                     ....................  309(a)...............      63  397..................                      259             151
                                     ....................  309(b)...............  ......  .....................                      259             152
                                     ....................  309(c)(1)............  ......  .....................                      259             111
                                     ....................  309(c)(2)............  ......  .....................                      259             112
                                     ....................  309(c)(3)............  ......  .....................                      259             114
                                     ....................  309(c)(4)............  ......  .....................                      259             107
                                     ....................  309(c)(5)............  ......  .....................                      259             113
                                     ....................  309(c)(6)............  ......  .....................                      259             116
                                     ....................  309(c)(7)............  ......  .....................                      259             109
                                     ....................  309(c)(8), (9).......  ......  .....................                      259             108
                                     ....................  309(c)(10)...........  ......  .....................                      259             115
                                     ....................  309(c)(11)...........  ......  .....................                      259             103
                                     ....................  309(c)(12)...........  ......  .....................                      259             110
                                     ....................  309(c)(13)...........  ......  .....................                      259             102
                                     ....................  309(c)(14)...........  ......  .....................                      259             105
                                     ....................  309(d)...............  ......  .....................                      259             153
                                     ....................  309(e)...............  ......  .....................                      259             106
                                     ....................  310..................      63  397..................                      260            3101
                                     ....................  311..................  ......  .....................                      261            3102
                                     ....................  312..................  ......  .....................                      262            4701
                                     ....................  313..................  ......  .....................                      263            3103
                                     ....................  314..................  ......  .....................                      264            3307
                                     ....................  314A (``commercial     ......  .....................       264a (``commercial             103
                                                            item'').                                                             item'')
                                     ....................  314A                   ......  .....................                     264a             110
                                                            (``nondevelopmental                                      (``nondevelopmental
                                                            item'').                                                             item'')
                                     ....................  314A (``component'').  ......  .....................     264a (``component'')             105
                                     ....................  314A (``commercial     ......  .....................       264a (``commercial             102
                                                            component'').                                                   component'')
                                     ....................  314B.................  ......  .....................                     264b            3307
                                     ....................  315..................  ......  .....................                      265            4705
                                     ....................  316..................  ......  .....................                      266            3105
Oct. 29...........................  787..................  633..................      63  1024.................                      10d            8303
 
               1950
Sept. 5...........................  849..................  10(a)................      64  591..................                     256a            4707
 
               1952
July 14...........................  739..................  .....................      66  627..................            113, 113 note  ..............
 
               1954
May 11............................  199..................  1....................      68  81...................                      321  ..............
                                     ....................  2....................      68  81...................                      322  ..............
 
               1957
July 1............................  85-75................  (last par. on p. 251)      71  251..................                       6a  ..............
 
               1961
Aug. 3............................  87-125...............  301..................      75  279..................                       6b  ..............
 
               1962
Sept. 5...........................  87-638...............  .....................      76  437..................                     254a            4708
 
               1965
July 27...........................  89-90................  (2d par. on p. 276)..      79  276..................                     6a-1            6102
Oct. 22...........................  89-286...............  1....................      79  1034.................                 351 note  ..............
                                     ....................  2(a) (words before         79  1034.................                      351            6702
                                                            par. (1) related to
                                                            applicability).
                                     ....................  2(a) (words before         79  1034.................                      351            6703
                                                            par. (1) related to
                                                            required contract
                                                            terms), (1)-(5).
                                     ....................  2(b).................      79  1034.................                      351            6704
                                     ....................  3....................      79  1035.................                      352            6705
                                     ....................  4....................      79  1035.................                      353            6707
                                     ....................  5(a).................      79  1035.................                      354            6706
                                     ....................  5(b).................      79  1035.................                      354            6705
                                     ....................  6....................      79  1035.................                      355            6707
                                     ....................  7....................      79  1035.................                      356            6702
                                     ....................  8....................      79  1036.................                      357            6701
                                     ....................  9....................      79  1036.................                 351 note  ..............
                                     ....................  10...................  ......  .....................                      358            6707
 
               1974
Aug. 30...........................  93-400...............  4(1).................      88  797..................                      403             133
                                     ....................  4(2).................      88  797..................                      403             111
                                     ....................  4(3).................      88  797..................                      403             112
                                     ....................  4(4).................      88  797..................                      403             114
                                     ....................  4(5).................  ......  .....................                      403             132
                                     ....................  4(6).................  ......  .....................                      403             107
                                     ....................  4(7).................  ......  .....................                      403             113
                                     ....................  4(8).................  ......  .....................                      403             116
                                     ....................  4(9).................  ......  .....................                      403             109
                                     ....................  4(10) (``item'',       ......  .....................                      403             108
                                                            ``item of supply'').
                                     ....................  4(10) (``supplies'').  ......  .....................                      403             115
                                     ....................  4(11)................  ......  .....................                      403             134
                                     ....................  4(12)................  ......  .....................                      403             103
                                     ....................  4(13)................  ......  .....................                      403             110
                                     ....................  4(14)................  ......  .....................                      403             105
                                     ....................  4(15)................  ......  .....................                      403             102
                                     ....................  4(16)................  ......  .....................                      403             131
                                     ....................  4(17)................  ......  .....................                      403            1301
                                     ....................  5(a).................      88  797..................                      404            1101
                                     ....................  5(b).................      88  797..................                      404            1102
                                     ....................  6(a)-(c).............      88  797..................                      405            1121
                                     ....................  6(d), (e)............      88  797..................                      405            1122
                                     ....................  6(f).................      88  797..................                      405            1121
                                     ....................  6(g).................      88  797..................                      405            1122
                                     ....................  6(h)(1)..............      88  797..................                      405            1130
                                     ....................  6(h)(2)..............      88  797..................                      405            2305
                                     ....................  6(i).................      88  797..................                      405            1125
                                     ....................  6(j).................  ......  .....................                      405            1126
                                     ....................  6(k).................  ......  .....................                      405            1131
                                     ....................  7....................      88  798..................                      406            1701
                                     ....................  9....................      88  799..................                      408            1121
                                     ....................  11...................      88  799..................                      410            1101
                                     ....................  12...................      88  799..................                      411            1122
                                     ....................  14(a)................      88  800..................                      412            2307
                                     ....................  14(b)................      88  800..................                      412            2306
                                     ....................  15...................  ......  .....................                      413            1124
                                     ....................  16...................  ......  .....................                      414            1702
                                     ....................  16A(a)-(c)...........  ......  .....................                     414b            1311
                                     ....................  16A(d), (e)..........  ......  .....................                     414b            1312
                                     ....................  18...................  ......  .....................                      416            1708
                                     ....................  19...................  ......  .....................                      417            1712
                                     ....................  20...................  ......  .....................                      418            1705
                                     ....................  21...................  ......  .....................                     418a            2302
                                     ....................  22...................  ......  .....................                     418b            1707
                                     ....................  23...................  ......  .....................                      419            1709
                                     ....................  25(a), (b)...........  ......  .....................                      421            1302
                                     ....................  25(c)-(f)............  ......  .....................                      421            1303
                                     ....................  26(a)-(e)............  ......  .....................                      422            1501
                                     ....................  26(f)-(h)(1).........  ......  .....................                      422            1502
                                     ....................  26(h)(2)-(4).........  ......  .....................                      422            1503
                                     ....................  26(i)................  ......  .....................                      422  ..............
                                     ....................  26(j)................  ......  .....................                      422            1504
                                     ....................  26(k)................  ......  .....................                      422            1505
                                     ....................  26(l)................  ......  .....................                      422            1506
                                     ....................  27(a), (b)...........  ......  .....................                      423            2102
                                     ....................  27(c)................  ......  .....................                      423            2103
                                     ....................  27(d)................  ......  .....................                      423            2104
                                     ....................  27(e)................  ......  .....................                      423            2105
                                     ....................  27(f)................  ......  .....................                      423            2101
                                     ....................  27(g)................  ......  .....................                      423            2106
                                     ....................  27(h)................  ......  .....................                      423            2107
                                     ....................  29...................  ......  .....................                      425            1304
                                     ....................  30...................  ......  .....................                      426            2301
                                     ....................  31...................  ......  .....................                      427            1901
                                     ....................  32...................  ......  .....................                      428            1902
                                     ....................  32A..................  ......  .....................                     428a            1903
                                     ....................  33...................  ......  .....................                      429            1905
                                     ....................  34...................  ......  .....................                      430            1906
                                     ....................  35(a), (b)...........  ......  .....................                      431            1907
                                     ....................  35(c)................  ......  .....................                      431             104
                                     ....................  35A..................  ......  .....................                     431a            1908
                                     ....................  36...................  ......  .....................                      432            1711
                                     ....................  37...................  ......  .....................                      433            1703
                                     ....................  38...................  ......  .....................                      434            2308
                                     ....................  39...................  ......  .....................                      435            1127
                                     ....................  40...................  ......  .....................                      436            2309
                                     ....................  41...................  ......  .....................                      437            2310
                                     ....................  42...................  ......  .....................                      438            7105
                                     ....................  43...................  ......  .....................                      439            1710
                                     ....................  44...................  ......  .....................                      440            2312
 
               1978
Oct. 24...........................  95-507...............  222 (1st sentence)...      92  1771.................                     405a            1121
                                     ....................  222 (last sentence)..      92  1771.................                     405a            1123
Nov. 1............................  95-563...............  1....................      92  2383.................                 601 note  ..............
                                     ....................  2....................      92  2383.................                      601            7101
                                     ....................  3....................      92  2383.................                      602            7102
                                     ....................  4....................      92  2384.................                      603            7102
                                     ....................  5....................      92  2384.................                      604            7103
                                     ....................  6(a) (1st, 2d              92  2384.................                      605            7103
                                                            sentences).
                                     ....................  6(a) (3d, 4th          ......  .....................                      605            7103
                                                            sentences).
                                     ....................  6(a) (5th-last             92  2384.................                      605            7103
                                                            sentences), (b),
                                                            (c)(1)-(5).
                                     ....................  6(c)(6), (7), (d),     ......  .....................                      605            7103
                                                            (e).
                                     ....................  7....................      92  2385.................                      606            7104
                                     ....................  8(a)-(e).............      92  2385.................                      607            7105
                                     ....................  8(f).................      92  2386.................                      607            7106
                                     ....................  8(g).................      92  2387.................                      607            7107
                                     ....................  9....................      92  2387.................                      608            7106
                                     ....................  10(a)................      92  2388.................                      609            7104
                                     ....................  10(b)-(e)............      92  2388.................                      609            7107
                                     ....................  10(f)................  ......  .....................                      609            7107
                                     ....................  11...................      92  2388.................                      610            7105
                                     ....................  12...................      92  2389.................                      611            7109
                                     ....................  13...................      92  2389.................                      612            7108
                                     ....................  15...................      92  2391.................                      613  ..............
                                     ....................  16...................      92  2391.................                 601 note  ..............
 
               1984
Oct. 30...........................  98-577...............  502..................      98  3085.................                     414a            1706
 
               1988
Oct. 1............................  100-463..............  8141.................     102  2270-47..............                     405b            2304
Oct. 25...........................  100-533..............  502..................     102  2697.................                     417a            1713
Nov. 18...........................  100-690..............  5151.................     102  4304.................                 701 note  ..............
                                     ....................  5152.................     102  4304.................                      701            8102
                                     ....................  5153.................     102  4306.................                      702            8103
                                     ....................  5154.................     102  4307.................                      703            8104
                                     ....................  5155.................     102  4307.................                      704            8105
                                     ....................  5156.................     102  4308.................                      705            8106
                                     ....................  5157, 5158...........     102  4308.................                 706, 707            8101
                                     ....................  5160.................     102  4308.................                 701 note  ..............
 
               1992
Oct. 29...........................  102-572..............  907(a)(3)............     106  4518.................                 611 note            7109
 
               1993
Nov. 30...........................  103-160..............  849(c), (d)..........     107  1725.................                    10b-2            8304
 
               1994
Oct. 13...........................  103-355..............  1054(b)..............     108  3265.................                253h note            4102
                                     ....................  8002.................     108  3386.................                 264 note            3307
 
               1996
Sept. 23..........................  104-201..............  827..................     110  2611.................                    10b-3            8305
 
               1997
June 12...........................  105-18...............  7004.................     111  192..................                   253l-1            3904
 
               1999
Sept. 29..........................  106-57...............  207..................     113  423..................                   253l-2            3904
Oct. 5............................  106-65...............  804..................     113  704..................                253h note            4104
 
               2000
Dec. 21...........................  106-554..............  1(a)(2) [title I,         114  2763A-100............                   253l-3            3904
                                                            Sec. 101].
                                     ....................  1(a)(2) [title I,         114  2763A-108............                   253l-4            3904
                                                            Sec. 110].
 
               2003
Feb. 20...........................  108-7................  div. H, title I, Sec.     117  350..................                   253l-5            3904
                                                            5.
                                     ....................  div. H, title I, Sec.     117  354..................                     6a-3            6102
                                                            104.
                                     ....................  div. H, title I, Sec.     117  357..................                   253l-6            3904
                                                            1002.
                                     ....................  div. H, title I, Sec.     117  370..................                     6a-4            6102
                                                            1102.
                                     ....................  div. H, title I, Sec.     117  373..................                   253l-7            3904
                                                            1202.
Aug. 15...........................  108-72...............  4....................     117  889..................                   253l-8            3904
Nov. 24...........................  108-136..............  1412(a)..............     117  1664.................                 433 note            1703
                                     ....................  1413.................     117  1665.................                 433 note            1703
                                     ....................  1414.................     117  1666.................                 433 note            1128
                                     ....................  1428.................     117  1670.................                253a note            3306
                                     ....................  1431(b)..............     117  1671.................                 405 note            1129
                                     ....................  1441.................     117  1673.................                428a note            1904
 
               2004
Oct. 28...........................  108-375..............  807(c)...............     118  2011.................                431a note            1908
 
               2008
Jan. 28...........................  110-181..............  855..................     122  251..................                     433a            1704
June 30...........................  110-252..............  6102, 6103...........     122  2386, 2387...........                 251 note            3509
Oct. 14...........................  110-417..............  [div. A], title VIII,     122  4537.................                  405c(a)            2303
                                                            841(a).
                                     ....................  [div. A], title VIII,     122  4539.................                  405c(c)            2303
                                                            841(c).
                                     ....................  [div. A], title VIII,     122  4547.................                253h note            3302
                                                            863(a)-(e).
                                     ....................  [div. A], title VIII,     122  4549.................                 254 note            3906
                                                            864(a), (b), (d),
                                                            (e), (f)(2), (g).
                                     ....................  [div. A], title VIII,     122  4551.................                254b note            4710
                                                            866.
                                     ....................  [div. A], title VIII,     122  4551.................                 251 note            4711
                                                            867.
                                     ....................  [div. A], title VIII,     122  4552.................                254b note            3501
                                                            868.
                                     ....................  [div. A], title VIII,     122  4553.................                433a note            1704
                                                            869.
                                     ....................  [div. A], title VIII,     122  4555.................                     417b            2313
                                                            872.
                                     ....................  [div. A], title VIII,     122  4558.................                 405 note            2311
                                                            874(a).
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                Revised Statutes
----------------------------------------------------------------------------------------------------------------
                                                                          United States Code (title 41)
                   Revised Statutes Section                    -------------------------------------------------
                                                                        Existing                 Proposed
----------------------------------------------------------------------------------------------------------------
3709..........................................................                        5                     6101
3710..........................................................                        8                     6103
3732..........................................................                       11                     6301
3733..........................................................                       12                     6303
3735..........................................................                       13                     6304
3736..........................................................                       14                     6301
3737..........................................................                       15                     6305
3741..........................................................                       22                     6306
----------------------------------------------------------------------------------------------------------------


                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.