[Congressional Record Volume 140, Number 87 (Friday, July 1, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                  FEDERAL ACQUISITION STREAMLINING ACT

  Mr. NUNN. Mr. President, I ask that the Chair lay before the Senate a 
message from the House of Representatives on (S. 1587) a bill to revise 
and streamline the acquisition laws of the Federal Government, and for 
other purposes.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives:

       Resolved, That the bill from the Senate (S. 1587) entitled 
     ``An Act to revise and streamline the acquisition laws of the 
     Federal Government, and for other purposes'', do pass with 
     the following amendment:
       Strike out all after the enacting clause, and insert:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  Part I--Armed Services Acquisitions


                   subpart a--competition requirements

Sec. 1001. References to Federal Acquisition Regulation.
Sec. 1002. Establishment or maintenance of alternative sources of 
              supply.
Sec. 1003. Clarification of approval authority for use of procedures 
              other than full and open competition.


         subpart b--planning, solicitation, evaluation, and award

Sec. 1011. Source selection factors.
Sec. 1012. Solicitation provision regarding evaluation of purchase 
              options.
Sec. 1013. Prompt notice of award.
Sec. 1014. Post-award debriefings.
Sec. 1015. Protest file.
Sec. 1016. Agency decisions on protests.
Sec. 1017. Award of multiple contracts.


                      subpart c--kinds of contracts

Sec. 1021. Repeal of requirement for secretarial determination 
              regarding use of cost type or incentive contract.


      subpart d--miscellaneous provisions for the encouragement of 
                              competition

Sec. 1031. Repeal of requirement for annual report by advocates for 
              competition.

                 Part II--Civilian Agency Acquisitions


                   subpart a--competition requirements

Sec. 1051. References to Federal Acquisition Regulation.
Sec. 1052. Establishment or maintenance of alternative sources of 
              supply.
Sec. 1053. Clarification of approval authority for use of procedures 
              other than full and open competition.


         subpart b--planning, solicitation, evaluation, and award

Sec. 1061. Solicitation, evaluation, and award.
Sec. 1062. Solicitation provision regarding evaluation of purchase 
              options.
Sec. 1063. Prompt notice of award.
Sec. 1064. Post-award debriefings.
Sec. 1065. Protest file.
Sec. 1066. Agency decisions on protests.
Sec. 1067. Award of multiple contracts.


                      subpart c--kinds of contracts

Sec. 1071. Repeal of agency head determination regarding use of cost 
              type or incentive contract.
Sec. 1072. Multiyear contracting authority.
Sec. 1073. Severable services contracts crossing fiscal years.

                    Part III--Acquisitions Generally

Sec. 1091. Policy regarding consideration of contractor past 
              performance.
Sec. 1092. Repeal of requirement for annual report on competition.
Sec. 1093. Discouragement of nonstandard contract clauses.

                   Subtitle B--Truth in Negotiations

                  Part I--Armed Services Acquisitions

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

                 Part II--Civilian Agency Acquisitions

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

                  Subtitle C--Research and Development

Sec. 1301. Competition requirement for awards of grants and contracts 
              to nonprofit organizations.

                    Subtitle D--Procurement Protests

              Part I--Protests to the Comptroller General

Sec. 1401. Protest defined.
Sec. 1402. Review of protests and effect on contracts pending decision.
Sec. 1403. Decisions on protests.
Sec. 1404. Regulations.

     Part II--Protests in Procurements of Automatic Data Processing

Sec. 1431. Revocation of delegations of procurement authority.
Sec. 1432. Authority of the General Services Administration Board of 
              Contract Appeals.
Sec. 1433. Periods for certain actions.
Sec. 1434. Dismissals of protests.
Sec. 1435. Award of costs.
Sec. 1436. Dismissal agreements.
Sec. 1437. Matters to be covered in regulations.
Sec. 1438. Definition of protest.
Sec. 1439. Oversight of acquisition of automatic data processing 
              equipment by Federal agencies.

           Subtitle E--Policy, Definitions, and Other Matters

                  Part I--Armed Services Acquisitions

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

                 Part II--Civilian Agency Acquisitions

Sec. 1551. Definitions.
Sec. 1552. Delegation of procurement functions.
Sec. 1553. Determinations and decisions.
Sec. 1554. Repeals.
Sec. 1555. Cooperative purchasing.

                   TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                  Part I--Armed Services Acquisitions

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

                 Part II--Civilian Agency Acquisitions

Sec. 2051. Contract financing.

                    Part III--Acquisitions Generally

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

                      Subtitle B--Cost Principles

                  Part I--Armed Services Acquisitions

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

                 Part II--Civilian Agency Acquisitions

Sec. 2151. Allowable contract costs.
Sec. 2152. Revision of cost principle relating to entertainment, gift, 
              and recreation costs for contractor employees.

                    Part III--Acquisitions Generally

Sec. 2161. Travel expenses of government contractors.

                Subtitle C--Audit and Access to Records

                  Part I--Armed Services Acquisitions

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

                 Part II--Civilian Agency Acquisitions

Sec. 2251. Authority to examine records of contractors.

                 Subtitle D--Cost Accounting Standards

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

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

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

                    Subtitle F--Claims and Disputes

Sec. 2501. Certification of contract claims.
Sec. 2502. Shipbuilding claims.

         TITLE III--MAJOR SYSTEMS AND SERVICE SPECIFIC STATUTES

                   Subtitle A--Major Systems Statutes

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

                      Subtitle B--Testing Statutes

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

                  Subtitle C--Civil Reserve Air Fleet

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

                       Subtitle D--Miscellaneous

Sec. 3051. Regulations on procurement, production, warehousing, and 
              supply distribution functions.
Sec. 3052. Repeal of requirements regarding product evaluation 
              activities.
Sec. 3053. Codification and revision of limitation on lease of vessels, 
              aircraft, and vehicles.
Sec. 3054. Repeal of application of Public Contracts Act to certain 
              naval vessel contracts.

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

              Subtitle A--Simplified Acquisition Threshold

                   Part I--Establishment of Threshold

Sec. 4001. Establishment of simplified acquisition threshold.
Sec. 4002. Federal acquisition computer network architecture.
Sec. 4003. Implementation in Armed Services.
Sec. 4004. Implementation in civilian agencies.

                 Part II--Simplification of Procedures

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

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


                           subpart a--generally

Sec. 4021. Inapplicability of future enacted procurement laws to 
              contracts not exceeding the simplified acquisition 
              threshold.


                  subpart b--armed services acquisitions

Sec. 4031. Inapplicability of certain provisions of law.
Sec. 4032. Conforming amendments relating to inapplicability of certain 
              provisions of law.


                 subpart c--civilian agency acquisitions

Sec. 4041. Inapplicability of certain provisions of law.
Sec. 4042. Conforming amendments relating to inapplicability of certain 
              provisions of law.


                    subpart d--acquisitions generally

Sec. 4051. Conformance of certain procurement integrity requirements.
Sec. 4052. Inapplicability of the Drug-Free Workplace Act of 1988.

                     Part IV--Conforming Amendments

Sec. 4071. Armed Services acquisitions.
Sec. 4072. Civilian agency acquisitions.
Sec. 4073. Office of Federal Procurement Policy Act.

                    Part V--Revision of Regulations

Sec. 4081. Revision required.

           Subtitle B--Socioeconomic and Small Business Laws

Sec. 4101. Small business provisions.
Sec. 4102. Payment protections for subcontractors and suppliers.
Sec. 4103. Extension of test program for negotiation of comprehensive 
              small business subcontracting plans.
Sec. 4104. Small Business Procurement Advisory Council.
Sec. 4105. Maximum practicable opportunities for apprentices on Federal 
              construction projects.

               Subtitle C--Miscellaneous Acquisition Laws

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

                     TITLE V--STANDARDS OF CONDUCT

Sec. 5001. Contracting functions performed by Federal personnel.
Sec. 5002. Repeal of executed requirement for study and report.
Sec. 5003. Interests of Members of Congress.
Sec. 5004. Waiting period for significant changes proposed for 
              acquisition regulations.
Sec. 5005. Repeal of superseded and obsolete laws.

                TITLE VI--DEFENSE TRADE AND COOPERATION

Sec. 6001. Exception to Buy American Act for micro-purchases.
Sec. 6002. Policy on purchase of foreign goods.
Sec. 6003. Consolidation of miscellaneous procurement limitations.
Sec. 6004. Repeal of obsolete and redundant provisions.

                      TITLE VII--COMMERCIAL ITEMS

                Subtitle A--Definitions and Regulations

Sec. 7001. Definitions.
Sec. 7002. Regulations on acquisition of commercial items.

                Subtitle B--Armed Services Acquisitions

Sec. 7101. Establishment of new chapter in title 10.
Sec. 7102. Definitions.
Sec. 7103. Preference for acquisition of commercial items.
Sec. 7104. Exception to cost or pricing data requirements for 
              commercial items.
Sec. 7105. Principle of construction with future laws.
Sec. 7106. Inapplicability of certain provisions of law.
Sec. 7107. Conforming amendments relating to inapplicability of certain 
              provisions of law.

                Subtitle C--Civilian Agency Acquisitions

Sec. 7201. Definitions.
Sec. 7202. Preference for acquisition of commercial items.
Sec. 7203. Exception to cost or pricing data requirements for 
              commercial items.
Sec. 7204. Principle of construction with future laws.
Sec. 7205. Inapplicability of certain provisions of law.
Sec. 7206. Conforming amendments relating to inapplicability of certain 
              provisions of law.

                   Subtitle D--Acquisitions Generally

Sec. 7301. Conforming amendment relating to inapplicability of certain 
              provisions of law.
Sec. 7302. Flexible deadlines for submission of offers of commercial 
              items.
Sec. 7303. Additional responsibilities for advocates for competition.
Sec. 7304. Provisions not affected.
Sec. 7305. Comptroller General review of Federal Government use of 
              market research.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 8001. Test program.
Sec. 8002. Study of participation by certain small businesses in 
              Federal procurement.
Sec. 8003. Furtherance of contract goal for small disadvantaged 
              businesses and certain institutions of higher education.
Sec. 8004. Education and training.
Sec. 8005. Department of Defense acquisition of intellectual property 
              rights.
Sec. 8006. Sense of Congress on negotiated rulemaking.
Sec. 8007. Vendor and employee excellence awards.
Sec. 8008. Codification of accounting requirement for contracted 
              advisory and assistance services.
Sec. 8009. Technical and clerical amendments.

               TITLE IX--EFFECTIVE DATES AND REGULATIONS

Sec. 9001. Effective dates.
Sec. 9002. Regulations.
Sec. 9003. Evaluation by the Comptroller General.
                      TITLE I--CONTRACT FORMATION
                    Subtitle A--Competition Statutes

                  PART I--ARMED SERVICES ACQUISITIONS

                  Subpart A--Competition Requirements

     SEC. 1001. REFERENCES TO FEDERAL ACQUISITION REGULATION.

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

     SEC. 1002. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE 
                   SOURCES OF SUPPLY.

       (a) Prohibition on Use of Classes of Purchases or 
     Contracts.--Section 2304(b) of title 10, United States Code, 
     is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) A determination under paragraph (1) may not be made 
     for a class of purchases or contracts.''; and
       (3) in paragraph (4), as redesignated by paragraph (1), by 
     striking out ``paragraphs (1) and (2)'' and inserting in lieu 
     thereof ``paragraphs (1) and (3)''.
       (b) Additional Justification for Establishing or 
     Maintaining Alternative Sources.--Section 2304(b)(1) of such 
     title is amended--
       (1) by striking out ``or'' at the end of subparagraph (B);
       (2) by striking out the period at the end of subparagraph 
     (C) and inserting in lieu thereof a semicolon; and
       (3) by adding at the end the following new subparagraphs:
       ``(D) would ensure the continuous availability of a 
     reliable source of supply of such property or service;
       ``(E) would satisfy projected needs for such property or 
     service determined on the basis of a history of high demand 
     for the property or service; or
       ``(F) in the case of medical supplies, safety supplies, or 
     emergency supplies, would satisfy a critical need for such 
     supplies.''.

     SEC. 1003. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF 
                   PROCEDURES OTHER THAN FULL AND OPEN 
                   COMPETITION.

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

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

     SEC. 1011. SOURCE SELECTION FACTORS.

       (a) Content of Solicitation.--Section 2305(a) of title 10, 
     United States Code, is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A)(i)--
       (i) by striking out ``(and significant subfactors)'' and 
     inserting in lieu thereof ``and significant subfactors'',
       (ii) by inserting after ``price-related factors'' the 
     following: ``and subfactors'', and
       (iii) by inserting after ``nonprice-related factors'' the 
     following: ``and subfactors''; and
       (B) in subparagraph (B)(ii), by striking out subclause (I) 
     and inserting in lieu thereof the following:
       ``(I) either a statement that the proposals are intended to 
     be evaluated with, and award made after, discussions with the 
     offerors, or a statement that the proposals are intended to 
     be evaluated, and award made, without discussions with the 
     offerors (other than discussions conducted for the purpose of 
     minor clarification) unless discussions are determined to be 
     necessary; and''; and
       (2) by striking out paragraph (3) and inserting in lieu 
     thereof the following:
       ``(3)(A) In prescribing the evaluation factors to be 
     included in each solicitation for competitive proposals, an 
     agency head--
       ``(i) shall clearly establish the relative importance 
     assigned to the evaluation factors and subfactors, including 
     the quality of the product or services to be provided 
     (including technical capability, management capability, prior 
     experience, and past performance of the offeror);
       ``(ii) shall include cost or price to the Federal 
     Government as an evaluation factor that must be considered in 
     the evaluation of proposals; and
       ``(iii) shall 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.
       ``(B) The regulations implementing clause (iii) of 
     subparagraph (A) may not define the terms `significantly more 
     important' and `significantly less important' as specific 
     numeric weights that would be applied uniformly to all 
     solicitations.
       ``(4) Nothing in this subsection prohibits an agency from--
       ``(A) providing additional information in a solicitation, 
     including numeric weights for all evaluation factors and 
     subfactors; or
       ``(B) stating in a solicitation that award will be made to 
     the offeror that meets the solicitation's mandatory 
     requirements at the lowest cost or price.''.
       (b) Authority To Apply Amendments Early.--The head of an 
     agency may apply the amendments made by this section to 
     solicitations issued before the effective date specified in 
     section 9001(a) and to contracts awarded pursuant to those 
     solicitations. The head of the agency shall publish in the 
     Federal Register notice of any such earlier date of 
     application at least 10 days before that date.

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

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

     SEC. 1013. PROMPT NOTICE OF AWARD.

       (a) Sealed Bid Procedures.--Paragraph (3) of section 
     2305(b) of title 10, United States Code, is amended--
       (1) in the last sentence, by striking out ``transmitting 
     written notice'' and inserting in lieu thereof 
     ``transmitting, in writing or by electronic means, notice''; 
     and
       (2) by adding at the end the following: ``Within three days 
     after the date of contract award, the head of the agency 
     shall notify, in writing or by electronic means, each bidder 
     not awarded the contract that the contract has been 
     awarded.''.
       (b) Competitive Proposals Procedures.--Paragraph (4)(B) of 
     such section is amended in the second sentence--
       (1) by striking out ``transmitting written notice'' and 
     inserting in lieu thereof ``transmitting, in writing or by 
     electronic means, notice''; and
       (2) by striking out ``shall promptly notify'' and inserting 
     in lieu thereof ``, within three days after the date of 
     contract award, shall notify, in writing or by electronic 
     means,''.

     SEC. 1014. POST-AWARD DEBRIEFINGS.

       Section 2305(b) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5)(A) When a contract is awarded by an agency on the 
     basis of competitive proposals, an unsuccessful offeror, upon 
     written request received by the agency within five days after 
     the date of receipt of notification of the contract award, 
     shall be debriefed and furnished the basis for the selection 
     decision and contract award. The head of the agency shall 
     debrief the offeror within, to the maximum extent 
     practicable, five days after receipt of the request by the 
     agency.
       ``(B) Such debriefing shall include, at a minimum, the 
     following:
       ``(i) The agency's evaluation of the significant weak or 
     deficient factors in the offeror's offer.
       ``(ii) The overall evaluated cost of the offer of the 
     offeror awarded the contract and the overall evaluated cost 
     of the offer of the debriefed offeror.
       ``(iii) The overall ranking of all offers and the total 
     technical and cost scores of all offers.
       ``(iv) A summary of the rationale for the award.
       ``(v) In the case of an offer by the debriefed offeror that 
     includes a commercial item that is an end item under the 
     contract, the makes and models of similar commercial items 
     included in the offer of the offeror awarded the contract.
       ``(vi) Reasonable responses to questions posed by the 
     debriefed offeror as to whether source selection procedures 
     set forth in the solicitation, applicable regulations, and 
     other applicable authorities were followed by the agency.
       ``(C) The debriefing shall not include point-by-point 
     comparisons of the debriefed offeror's offer with other 
     offers and shall not disclose any information that is exempt 
     from disclosure under section 552 of title 5.
       ``(D) Each solicitation for competitive proposals shall 
     include a statement that information described in 
     subparagraph (B) may be disclosed in post-award debriefings.

       ``(E) The contracting officer shall include a summary of 
     the debriefing in the contract file.''.

     SEC. 1015. PROTEST FILE.

       Section 2305 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) Protest File.--(1) If, in the case of a solicitation 
     for a contract issued by, or an award or proposed award of a 
     contract by, the head of an agency, a protest is filed 
     pursuant to the procedures in subchapter V of chapter 35 of 
     title 31 and an actual or prospective offeror so requests, a 
     file of the protest shall be established by the procuring 
     activity and reasonable access shall be provided to actual or 
     prospective offerors.
       ``(2) 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.
       ``(3) Regulations implementing this subsection shall be 
     consistent with the regulations regarding the preparation and 
     submission of an agency's protest file (the so-called `rule 4 
     file') for protests to the General Services Board of Contract 
     Appeals under section 111 of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 759).''.

     SEC. 1016. AGENCY DECISIONS ON PROTESTS.

       Section 2305 of title 10, United States Code, as amended by 
     section 1015, is further amended by adding at the end the 
     following new subsection:
       ``(f) Decisions on Protests.--If, in connection with a 
     protest, the head of an agency determines that a 
     solicitation, proposed award, or award does not comply with 
     the requirements of law or regulation, the head of the 
     agency--
       ``(1) may take any action set out in subparagraphs (A) 
     through (F) of subsection (b)(1) of section 3554 of title 31; 
     and
       ``(2) may pay costs described in paragraph (1) of section 
     3554(c) of title 31 within the limits referred to in 
     paragraph (2) of such section.''.

     SEC. 1017. AWARD OF MULTIPLE CONTRACTS.

       Section 2305 of title 10, United States Code, as amended by 
     section 1016, is further amended by adding at the end the 
     following new subsection:
       ``(g) Award of Multiple Contracts.--In procuring any supply 
     or service using competitive procedures, the head of an 
     agency may award more than one contract for the same supply 
     or service in any case in which the head of the agency 
     determines that it is in the best interests of the Federal 
     Government to award those contracts for the purpose of 
     maintaining a continuous source for the supply or service.''.

                     Subpart C--Kinds of Contracts

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

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

     Subpart D--Miscellaneous Provisions for the Encouragement of 
                              Competition

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

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

                 PART II--CIVILIAN AGENCY ACQUISITIONS

                  Subpart A--Competition Requirements

     SEC. 1051. REFERENCES TO FEDERAL ACQUISITION REGULATION.

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

     SEC. 1052. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE 
                   SOURCES OF SUPPLY.

       (a) Prohibition on Use of Classes of Purchases or 
     Contracts.--Section 303(b) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(b)) is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) A determination under paragraph (1) may not be made 
     for a class of purchases or contracts.''; and
       (3) in paragraph (4), as redesignated by paragraph (1), by 
     striking out ``paragraphs (1) and (2)'' and inserting in lieu 
     thereof ``paragraphs (1) and (3)''.
       (b) Additional Justification for Establishing or 
     Maintaining Alternative Sources.--Section 303(b)(1) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253(b)(1)) is amended--
       (1) by striking out ``or'' at the end of subparagraph (B);
       (2) by striking out the period at the end of subparagraph 
     (C) and inserting in lieu thereof a semicolon; and
       (3) by adding at the end the following new subparagraphs:
       ``(D) would ensure the continuous availability of a 
     reliable source of supply of such property or service;
       ``(E) would satisfy projected needs for such property or 
     service determined on the basis of a history of high demand 
     for the property or service; or
       ``(F) in the case of medical supplies, safety supplies, or 
     emergency supplies, would satisfy a critical need for such 
     supplies.''.

     SEC. 1053. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF 
                   PROCEDURES OTHER THAN FULL AND OPEN 
                   COMPETITION.

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

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

     SEC. 1061. SOLICITATION, EVALUATION, AND AWARD.

       (a) Content of Solicitation.--Section 303A of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     253a) is amended--
       (1) in subsection (b)(1), by amending subparagraph (A) to 
     read as follows:
       ``(A) all significant factors and significant subfactors 
     which the executive agency reasonably expects to consider in 
     evaluating sealed bids (including price) or competitive 
     proposals (including cost or price, cost- or price-related 
     factors and subfactors, and noncost- or nonprice-related 
     factors and subfactors); and'';
       (2) in subsection (b)(1)(B), by inserting ``and 
     subfactors'' after ``factors'';
       (3) in subsection (b)(2)(B), by striking out clause (i) and 
     inserting in lieu thereof the following:
       ``(i) either a statement that the proposals are intended to 
     be evaluated with, and award made after, discussions with the 
     offerors, or a statement that the proposals are intended to 
     be evaluated, and award made, without discussions with the 
     offerors (other than discussions conducted for the purpose of 
     minor clarification) unless discussions are determined to be 
     necessary; and''; and
       (4) by adding at the end the following new subsection:
       ``(c)(1) In prescribing the evaluation factors to be 
     included in each solicitation for competitive proposals, an 
     executive agency--
       ``(A) shall clearly establish the relative importance 
     assigned to the evaluation factors and subfactors, including 
     the quality of the product or services to be provided 
     (including technical capability, management capability, prior 
     experience, and past performance of the offeror);
       ``(B) shall include cost or price to the Federal Government 
     as an evaluation factor that must be considered in the 
     evaluation of proposals; and
       ``(C) shall 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) The regulations implementing subparagraph (C) of 
     paragraph (1) may not define the terms `significantly more 
     important' and `significantly less important' as specific 
     numeric weights that would be applied uniformly to all 
     solicitations.
       ``(3) Nothing in this subsection prohibits an executive 
     agency from--
       ``(A) providing additional information in a solicitation, 
     including numeric weights for all evaluation factors and 
     subfactors; or
       ``(B) stating in a solicitation that award will be made to 
     the offeror that meets the solicitation's mandatory 
     requirements at the lowest cost or price.''.
       (b) Evaluation and Award.--Section 303B of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     253b) is amended--
       (1) in subsection (a), by inserting ``, and award a 
     contract,'' after ``competitive proposals'';
       (2) in subsection (c), by inserting ``in accordance with 
     subsection (a)'' in the second sentence after ``shall 
     evaluate the bids''; and
       (3) in subsection (d)--
       (A) by striking out paragraph (1) and inserting in lieu 
     thereof the following:
       ``(1) An executive agency shall evaluate competitive 
     proposals in accordance with subsection (a) and may award a 
     contract--
       ``(A) after discussions with the offerors, provided that 
     written or oral discussions have been conducted with all 
     responsible offerors who submit proposals within the 
     competitive range; or
       ``(B) based on the proposals received and without 
     discussions with the offerors (other than discussions 
     conducted for the purpose of minor clarification), provided 
     that, as required by section 303A(b)(2)(B)(i), the 
     solicitation included a statement that proposals are intended 
     to be evaluated, and award made, without discussions, unless 
     discussions are determined to be necessary.''; and
       (B) by striking out paragraphs (2) and (3) and by 
     redesignating paragraph (4) as paragraph (2).
       (c) Authority To Apply Amendments Early.--The head of an 
     executive agency may apply the amendments made by this 
     section to solicitations issued before the effective date 
     specified in section 9001(a) and to contracts awarded 
     pursuant to those solicitations. The head of the executive 
     agency shall publish in the Federal Register notice of any 
     such earlier date of application at least 10 days before that 
     date.

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

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

     SEC. 1063. PROMPT NOTICE OF AWARD.

       (a) Sealed Bid Procedures.--Subsection (c) of section 303B 
     of the Federal Property and Administrative Services Act of 
     1949 (41 U.S.C. 253b) is amended--
       (1) in the last sentence, by striking out ``transmitting 
     written notice'' and inserting in lieu thereof 
     ``transmitting, in writing or by electronic means, notice''; 
     and
       (2) by adding at the end the following: ``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.''.
       (b) Competitive Proposals Procedures.--Paragraph (2) of 
     such section, as redesignated by section 1061(b)(3)(B), is 
     amended in the second sentence--
       (1) by striking out ``transmitting written notice'' and 
     inserting in lieu thereof ``transmitting, in writing or by 
     electronic means, notice''; and
       (2) by striking out ``shall promptly notify'' and inserting 
     in lieu thereof ``, within 3 days after the date of contract 
     award, shall notify, in writing or by electronic means,''.

     SEC. 1064. POST-AWARD DEBRIEFINGS.

       Section 303B of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253b) is amended--
       (1) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e)(1) When a contract is awarded by an executive agency 
     on the basis of competitive proposals, an unsuccessful 
     offeror, upon written request received by the executive 
     agency within 5 days after the date of receipt of 
     notification of the contract award, shall be debriefed and 
     furnished the basis for the selection decision and contract 
     award. The executive agency shall debrief the offeror within, 
     to the maximum extent practicable, 5 days after receipt of 
     the request by the executive agency.
       ``(2) Such debriefing shall include, at a minimum, the 
     following:
       ``(A) The executive agency's evaluation of the significant 
     weak or deficient factors in the offeror's offer.
       ``(B) The overall evaluated cost of the offer of the 
     offeror awarded the contract and the overall evaluated cost 
     of the offer of the debriefed offeror.
       ``(C) The overall ranking of all offers and the total 
     technical and cost scores of all offers.
       ``(D) A summary of the rationale for the award.
       ``(E) In the case of an offer by the debriefed offeror that 
     includes a commercial item that is an end item under the 
     contract, the makes and models of similar commercial items 
     included in the offer of the offeror awarded the contract.
       ``(F) Reasonable responses to questions posed by the 
     debriefed offeror as to whether source selection procedures 
     set forth in the solicitation, applicable regulations, and 
     other applicable authorities were followed by the executive 
     agency.
       ``(3) The debriefing shall not include point-by-point 
     comparisons of the debriefed offeror's offer with other 
     offers and shall not disclose any information that is exempt 
     from disclosure under section 552 of title 5, United States 
     Code.
       ``(4) Each solicitation for competitive proposals shall 
     include a statement that information described in paragraph 
     (2) may be disclosed in post-award debriefings.
       ``(5) The contracting officer shall include a summary of 
     the debriefing in the contract file.''.

     SEC. 1065. PROTEST FILE.

       Section 303B of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253b) is amended by adding at 
     the end the following new subsection:
       ``(h) Protest File.--(1) If, in the case of a solicitation 
     for a contract issued by, or an award or proposed award of a 
     contract by, an agency head, a protest is filed pursuant to 
     the procedures in subchapter V of chapter 35 of title 31, 
     United States Code, and an actual or prospective offeror so 
     requests, a file of the protest shall be established by the 
     procuring activity and reasonable access shall be provided to 
     actual or prospective offerors.
       ``(2) Information exempt from disclosure under section 552 
     of title 5, United States Code, may be redacted in a file 
     established pursuant to paragraph (1) unless an applicable 
     protective order provides otherwise.
       ``(3) Regulations implementing this subsection shall be 
     consistent with the regulations regarding the preparation and 
     submission of an agency's protest file (the so-called `rule 4 
     file') for protests to the General Services Board of Contract 
     Appeals under section 111 of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 759).''.

     SEC. 1066. AGENCY DECISIONS ON PROTESTS.

       Section 303B of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253b), as amended by section 
     1065, is further amended by adding at the end the following 
     new subsection:
       ``(i) Decisions on Protests.--If, in connection with a 
     protest, an executive agency determines that a solicitation, 
     proposed award, or award does not comply with the 
     requirements of law or regulation, the executive agency--
       ``(1) may take any action set out in subparagraphs (A) 
     through (F) of subsection (b)(1) of section 3554 of title 31, 
     United States Code; and
       ``(2) may pay costs described in paragraph (1) of section 
     3554(c) of such title within the limits referred to in 
     paragraph (2) of such section.''.

     SEC. 1067. AWARD OF MULTIPLE CONTRACTS.

       Section 303B of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253b), as amended by section 
     1066, is further amended by adding at the end the following 
     new subsection:
       ``(j) Award of Multiple Contracts.--In procuring any supply 
     or service using competitive procedures, an executive agency 
     may award more than one contract for the same supply or 
     service in any case in which the executive agency determines 
     that it is in the best interests of the Federal Government to 
     award those contracts for the purpose of maintaining a 
     continuous source for the supply or service.''.

                     Subpart C--Kinds of Contracts

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

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

     SEC. 1072. MULTIYEAR CONTRACTING AUTHORITY.

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

     ``SEC. 304A. MULTIYEAR CONTRACTS.

       ``(a) Authority.--An executive agency may enter into a 
     multiyear contract for the acquisition of property or 
     services if--
       ``(1) funds are available and obligated for such 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 any necessary termination of 
     such contract;
       ``(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 United States by encouraging full and open competition or 
     promoting economy in administration, performance, and 
     operation of the agency's programs; and
       ``(3) such contract is awarded on a fully competitive 
     basis.
       ``(b) 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 such 
     contract in any fiscal year covered by the contract. Amounts 
     available for paying termination costs shall remain available 
     for such purpose until the costs associated with termination 
     of the contract are paid.
       ``(c) Cancellation Ceiling Notice.--Before any contract 
     described in subsection (a) 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 the Congress, and such contract 
     may not then be awarded until the end of a period of 30 days 
     beginning on the date of such notification.
       ``(d) Multiyear Contract Defined.--For the purposes of this 
     section, a multiyear contract is a contract for the purchase 
     of property or services for more than one, but not more than 
     five, program years. Such a contract may provide that 
     performance under the contract during the second and 
     subsequent years of the contract is contingent upon the 
     appropriation of funds and (if it does so provide) may 
     provide for a cancellation payment to be made to the 
     contractor if such appropriations are not made.
       ``(e) Rule of Construction.--Nothing in this section is 
     intended to modify or affect any other provision of law that 
     authorizes multiyear contracts.''.

     SEC. 1073. SEVERABLE SERVICES CONTRACTS CROSSING FISCAL 
                   YEARS.

       Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.) is amended by 
     inserting after section 303G the following new section:

     ``SEC. 303H. SEVERABLE SERVICES CONTRACTS FOR PERIODS 
                   CROSSING FISCAL YEARS.

       ``(a) Authority.--An executive agency may enter into a 
     severable contract for procurement of 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) Availability of Funds.--To the extent provided in 
     appropriations Acts, funds obligated for a contract entered 
     into under the authority of subsection (a) shall remain 
     available until no longer needed to pay for such contract.
       ``(c) Severable Contract Defined.--In this section, the 
     term `severable contract' means a contract that contains a 
     clause that makes the effectiveness of the contract for 
     periods after the end of the fiscal year in which the 
     performance of the contract begins subject to the 
     availability of appropriations.''.

                    PART III--ACQUISITIONS GENERALLY

     SEC. 1091. POLICY REGARDING CONSIDERATION OF CONTRACTOR PAST 
                   PERFORMANCE.

       (a) Policy.--Section 2 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 401) is amended--
       (1) by striking out ``and'' at the end of paragraph (12);
       (2) by striking out the period at the end of paragraph (13) 
     and inserting in lieu thereof ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(14) establishing policies and procedures that encourage 
     the consideration of contractors' past performance in the 
     selection of contractors.''.
       (b) Guidance Required.--Section 6 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 405) is amended by adding 
     at the end the following:
       ``(j)(1) Congress makes the following findings:
       ``(A) Past contract performance of an offeror is one of the 
     relevant factors that a contracting official of an executive 
     agency should consider in awarding a contract.
       ``(B) It is appropriate for a contracting official to 
     consider past contract performance of an offeror as an 
     indicator of the likelihood that the offeror will 
     successfully perform a contract to be awarded by that 
     official.
       ``(2) The Administrator shall prescribe for executive 
     agencies guidance regarding consideration of the past 
     contract performance of offerors in awarding contracts. The 
     guidance shall include--
       ``(A) 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;
       ``(B) 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; and
       ``(C) policies for ensuring that offerors are afforded an 
     opportunity to submit information on past contract 
     performance and that such information submitted by offerors 
     is considered.
       ``(3) The Administrator shall prescribe for all executive 
     agencies the policy regarding the period for which 
     information on past performance of offerors may be maintained 
     and considered.
       ``(4) In the case of an offeror with respect to which there 
     is no information on past contract performance or with 
     respect to which information on past contract performance is 
     not available, the offeror may not be evaluated favorably or 
     unfavorably on the factor of past contract performance.''.

     SEC. 1092. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON 
                   COMPETITION.

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

     SEC. 1093. DISCOURAGEMENT OF NONSTANDARD CONTRACT CLAUSES.

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

     ``SEC. 29. NONSTANDARD CONTRACT CLAUSES.

       ``The Federal Acquisition Regulatory Council shall 
     promulgate regulations to discourage the use of a nonstandard 
     contract clause on a repetitive basis. The regulations shall 
     include provisions that--
       ``(1) clearly define nonstandard clauses; and
       ``(2) require prior approval for the use of a nonstandard 
     clause on a repetitive basis by an official at a level of 
     responsibility above the contracting officer.''.
                   Subtitle B--Truth in Negotiations

                  PART I--ARMED SERVICES ACQUISITIONS

     SEC. 1201. STABILIZATION OF DOLLAR THRESHOLD OF 
                   APPLICABILITY.

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

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

       (a) Exceptions.--Subsection (b) of section 2306a of title 
     10, United States Code, is amended to read as follows:
       ``(b) Exceptions.--(1) This section shall not be applied to 
     a contract or subcontract, or a modification to a contract or 
     subcontract--
       ``(A) for which the price agreed upon is based on--
       ``(i) adequate price competition;
       ``(ii) established catalog or market prices of commercial 
     items or of services regularly used for other than Federal 
     Government purposes, as the case may be, that are sold in 
     sufficient quantities to the general public; or
       ``(iii) prices set by law or regulation; or
       ``(B) in an exceptional case when the head of the procuring 
     activity, without delegation, determines that the 
     requirements of this section may be waived and justifies in 
     writing the reasons for such determination.
       ``(2) The Federal Acquisition Regulation (issued under 
     section 25(c) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421(c)) shall provide clear standards for 
     determining whether the exceptions provided in paragraph 
     (1)(A) apply. In the case of the exception provided in 
     paragraph (1)(A)(i), the regulations shall specify the 
     criteria to be used to determine whether adequate price 
     competition exists. In the case of the exception provided in 
     paragraph (1)(A)(ii), the regulations shall preclude the 
     consideration of sales to the Federal Government, including 
     the percentage of an item's overall sales that are made to 
     the Federal Government, when determining whether the item has 
     been sold in sufficient quantities to the public.''.
       (b) Limitation on Authority.--Subsection (c) of such 
     section is amended to read as follows:
       ``(c) Authority To Require Cost or Pricing Data on Below-
     Threshold Contracts.--When cost or pricing data are not 
     required to be submitted by subsection (a), such data may 
     nevertheless be required to be submitted by the head of the 
     procuring activity, but only if the head of the procuring 
     activity determines that such data are necessary for the 
     evaluation by the agency of the reasonableness of the price 
     of the contract or subcontract. In any case in which the head 
     of the procuring activity requires such data to be submitted 
     under this subsection, the head of the procuring activity 
     shall justify in writing the reason for such requirement. The 
     head of the procuring activity may not require such data to 
     be submitted under this subsection for any contract or 
     subcontract, or modification to a contract or subcontract, 
     covered by the exceptions in subsection (b). The head of the 
     procuring activity may not delegate the functions under this 
     subsection.''.

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

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

     SEC. 1204. CONSISTENCY OF TIME REFERENCES.

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

     SEC. 1205. REPEAL OF SUPERSEDED PROVISION.

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

                 PART II--CIVILIAN AGENCY ACQUISITIONS

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

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

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

       ``(a) Required Cost or Pricing Data and Certification.--(1) 
     An executive agency shall require offerors, contractors, and 
     subcontractors to make cost or pricing data available as 
     follows:
       ``(A) An offeror for a prime contract under this title to 
     be entered into using procedures other than sealed-bid 
     procedures shall be required to submit cost or pricing data 
     before the award of a contract if--
       ``(i) in the case of a prime contract entered into after 
     the date of the enactment of the Federal Acquisition 
     Improvement Act of 1994, the price of the contract to the 
     United States is expected to exceed $500,000; and
       ``(ii) in the case of a prime contract entered into on or 
     before the date of the enactment of the Federal Acquisition 
     Improvement Act of 1994, the price of the contract to the 
     United States is expected to exceed $100,000.
       ``(B) The contractor for a prime contract under this 
     chapter shall be required to submit cost or pricing data 
     before the pricing of a change or modification to the 
     contract if--
       ``(i) in the case of a change or modification made to a 
     prime contract referred to in subparagraph (A)(i), the price 
     adjustment is expected to exceed $500,000;
       ``(ii) in the case of a change or modification made to a 
     prime contract that was entered into on or before the date of 
     the enactment of the Federal Acquisition Improvement Act of 
     1994, and that has been modified pursuant to paragraph (6), 
     the price adjustment is expected to exceed $500,000; and
       ``(iii) in the case of a change or modification not covered 
     by clause (i) or (ii), the price adjustment is expected to 
     exceed $100,000.
       ``(C) An offeror for a subcontract (at any tier) of a 
     contract under this title shall be required to submit cost or 
     pricing data before the award of the subcontract if the prime 
     contractor and each higher-tier subcontractor have been 
     required to make available cost or pricing data under this 
     section and--
       ``(i) in the case of a subcontract under a prime contract 
     referred to in subparagraph (A)(i), the price of the 
     subcontract is expected to exceed $500,000;
       ``(ii) in the case of a subcontract entered into under a 
     prime contract that was entered into on or before the date of 
     the enactment of the Federal Acquisition Improvement Act of 
     1994, and that has been modified pursuant to paragraph (6), 
     the price of the subcontract is expected to exceed $500,000; 
     and
       ``(iii) in the case of a subcontract not covered by clause 
     (i) or (ii), the price of the subcontract is expected to 
     exceed $100,000.
       ``(D) The subcontractor for a subcontract covered by 
     subparagraph (C) shall be required to submit cost or pricing 
     data before the pricing of a change or modification to the 
     subcontract if--
       ``(i) in the case of a change or modification to a 
     subcontract referred to in subparagraph (C)(i) or (C)(ii), 
     the price adjustment is expected to exceed $500,000; and
       ``(ii) in the case of a change or modification to a 
     subcontract referred to in subparagraph (C)(iii), the price 
     adjustment is expected to exceed $100,000.
       ``(2) A person required, as an offeror, contractor, or 
     subcontractor, to submit cost or pricing data under paragraph 
     (1) (or required by the head of the procuring activity 
     concerned to submit such data under subsection (c)) shall be 
     required to certify that, to the best of the person's 
     knowledge and belief, the cost or pricing data submitted are 
     accurate, complete, and current.
       ``(3) Cost or pricing data required to be submitted under 
     paragraph (1) (or under subsection (c)), and a certification 
     required to be submitted under paragraph (2), shall be 
     submitted--
       ``(A) in the case of a submission by a prime contractor (or 
     an offeror for a prime contract), to the contracting officer 
     for the contract (or to a designated representative of the 
     contracting officer); or
       ``(B) in the case of a submission by a subcontractor (or an 
     offeror for a subcontract), to the prime contractor.
       ``(4) Except as provided under subsection (b), this section 
     applies to contracts entered into by an agency head on behalf 
     of a foreign government.
       ``(5) For purposes of paragraph (1)(C), a contractor or 
     subcontractor granted a waiver under subsection (b)(2) shall 
     be considered as having been required to make available cost 
     or pricing data under this section.
       ``(6) Upon the request of a contractor that was required to 
     submit cost or pricing data under paragraph (1) in connection 
     with a prime contract entered into on or before the date of 
     the enactment of the Federal Acquisition Improvement Act of 
     1994, the agency head that entered into such contract shall 
     modify the contract to reflect subparagraphs (B)(ii) and 
     (C)(ii) of paragraph (1). All such modifications shall be 
     made without requiring consideration.
       ``(7) The dollar amount in each of subparagraphs (A), (B), 
     (C), and (D) of paragraph (1) shall be adjusted on October 1 
     of each year divisible by 5 to the equivalent amount in 
     constant fiscal year 1993 dollars (rounded to the nearest 
     $10,000).
       ``(b) Exceptions.--(1) This section shall not be applied to 
     a contract or subcontract, or a modification to a contract or 
     subcontract--
       ``(A) for which the price agreed upon is based on--
       ``(i) adequate price competition;
       ``(ii) established catalog or market prices of commercial 
     items or of services regularly used for other than Federal 
     Government purposes, as the case may be, that are sold in 
     sufficient quantities to the general public; or
       ``(iii) prices set by law or regulation; or
       ``(B) in an exceptional case when the head of the procuring 
     activity, without delegation, determines that the 
     requirements of this section may be waived and justifies in 
     writing the reasons for such determination.
       ``(2) The Federal Acquisition Regulation (issued under 
     section 25(c) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421(c)) shall provide clear standards for 
     determining whether the exceptions provided in paragraph 
     (1)(A) apply. In the case of the exception provided in 
     paragraph (1)(A)(i), the regulations shall specify the 
     criteria to be used to determine whether adequate price 
     competition exists. In the case of the exception provided in 
     paragraph (1)(A)(ii), the regulations shall preclude the 
     consideration of sales to the Federal Government, including 
     the percentage of an item's overall sales that are made to 
     the Federal Government, when determining whether the item has 
     been sold in sufficient quantities to the public.
       ``(c) Authority To Require Cost or Pricing Data on Below-
     Threshold Contracts.--When cost or pricing data are not 
     required to be submitted by subsection (a), such data may 
     nevertheless be required to be submitted by the head of the 
     procuring activity, but only if the head of the procuring 
     activity determines that such data are necessary for the 
     evaluation by the agency of the reasonableness of the price 
     of the contract or subcontract. In any case in which the head 
     of the procuring activity requires such data to be submitted 
     under this subsection, the head of the procuring activity 
     shall justify in writing the reason for such requirement. The 
     head of the procuring activity may not require such data to 
     be submitted under this subsection for any contract or 
     subcontract, or modification to a contract or subcontract, 
     covered by the exceptions in subsection (b). The head of the 
     procuring activity may not delegate the functions under this 
     subsection.
       ``(d) Price Reductions for Defective Cost or Pricing 
     Data.--(1)(A) A prime contract (or change or modification to 
     a prime contract) under which a certificate under subsection 
     (a)(2) is required shall contain a provision that the price 
     of the contract to the United States, including profit or 
     fee, shall be adjusted to exclude any significant amount by 
     which it may be determined by the agency head that such price 
     was increased because the contractor (or any subcontractor 
     required to make available such a certificate) submitted 
     defective cost or pricing data.
       ``(B) For the purposes of this section, defective cost or 
     pricing data are cost or pricing data which, as of the date 
     of agreement on the price of the contract (or another date 
     agreed upon between the parties), were inaccurate, 
     incomplete, or noncurrent. If for purposes of the preceding 
     sentence the parties agree upon a date other than the date of 
     agreement on the price of the contract, the date agreed upon 
     by the parties shall be as close to the date of agreement on 
     the price of the contract as is practicable.
       ``(2) In determining for purposes of a contract price 
     adjustment under a contract provision required by paragraph 
     (1) whether, and to what extent, a contract price was 
     increased because the contractor (or a subcontractor) 
     submitted defective cost or pricing data, it shall be a 
     defense that the United States did not rely on the defective 
     data submitted by the contractor or subcontractor.
       ``(3) It is not a defense to an adjustment of the price of 
     a contract under a contract provision required by paragraph 
     (1) that--
       ``(A) the price of the contract would not have been 
     modified even if accurate, complete, and current cost or 
     pricing data had been submitted by the contractor or 
     subcontractor because the contractor or subcontractor--
       ``(i) was the sole source of the property or services 
     procured; or
       ``(ii) otherwise was in a superior bargaining position with 
     respect to the property or services procured;
       ``(B) the contracting officer should have known that the 
     cost and pricing data in issue were defective even though the 
     contractor or subcontractor took no affirmative action to 
     bring the character of the data to the attention of the 
     contracting officer;
       ``(C) the contract was based on an agreement between the 
     contractor and the United States about the total cost of the 
     contract and there was no agreement about the cost of each 
     item procured under such contract; or
       ``(D) the prime contractor or subcontractor did not submit 
     a certification of cost and pricing data relating to the 
     contract as required under subsection (a)(2).
       ``(4)(A) A contractor shall be allowed to offset an amount 
     against the amount of a contract price adjustment under a 
     contract provision required by paragraph (1) if--
       ``(i) the contractor certifies to the contracting officer 
     (or to a designated representative of the contracting 
     officer) that, to the best of the contractor's knowledge and 
     belief, the contractor is entitled to the offset; and
       ``(ii) the contractor proves that the cost or pricing data 
     were available before the date of agreement on the price of 
     the contract (or price of the modification), or, if 
     applicable consistent with paragraph (1)(B), another date 
     agreed upon between the parties, and that the data were not 
     submitted as specified in subsection (a)(3) before such date.
       ``(B) A contractor shall not be allowed to offset an amount 
     otherwise authorized to be offset under subparagraph (A) if--
       ``(i) the certification under subsection (a)(2) with 
     respect to the cost or pricing data involved was known to be 
     false when signed; or
       ``(ii) the United States proves that, had the cost or 
     pricing data referred to in subparagraph (A)(ii) been 
     submitted to the United States before the date of agreement 
     on the price of the contract (or price of the modification) 
     or, if applicable under paragraph (1)(B), another date agreed 
     upon between the parties, the submission of such cost or 
     pricing data would not have resulted in an increase in that 
     price in the amount to be offset.
       ``(e) Interest and Penalties for Certain Overpayments.--(1) 
     If the United States makes an overpayment to a contractor 
     under a contract with an executive agency subject to this 
     section and the overpayment was due to the submission by the 
     contractor of defective cost or pricing data, the contractor 
     shall be liable to the United States--
       ``(A) for interest on the amount of such overpayment, to be 
     computed--
       ``(i) for the period beginning on the date the overpayment 
     was made to the contractor and ending on the date the 
     contractor repays the amount of such overpayment to the 
     United States; and
       ``(ii) at the current rate prescribed by the Secretary of 
     the Treasury under section 6621 of the Internal Revenue Code 
     of 1986; and
       ``(B) if the submission of such defective data was a 
     knowing submission, for an additional amount equal to the 
     amount of the overpayment.
       ``(2) Any liability under this subsection of a contractor 
     that submits cost or pricing data but refuses to submit the 
     certification required by subsection (a)(2) with respect to 
     the cost or pricing data shall not be affected by the refusal 
     to submit such certification.
       ``(f) Right of United States To Examine Contractor 
     Records.--For the purpose of evaluating the accuracy, 
     completeness, and currency of cost or pricing data required 
     to be submitted by this section, an executive agency shall 
     have the authority provided by section 304C(a)(2).
       ``(g) Cost or Pricing Data Defined.--In this section, the 
     term `cost or pricing data' means all facts that, as of the 
     date of agreement on the price of a contract (or the price of 
     a contract modification) or, if applicable consistent with 
     subsection (d)(1)(B), another date agreed upon between the 
     parties, a prudent buyer or seller would reasonably expect to 
     affect price negotiations significantly. Such term does not 
     include information that is judgmental, but does include the 
     factual information from which a judgment was derived.''.

     SEC. 1252. REPEAL OF OBSOLETE PROVISION.

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

     SEC. 1301. COMPETITION REQUIREMENT FOR AWARDS OF GRANTS AND 
                   CONTRACTS TO NONPROFIT ORGANIZATIONS.

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

              PART I--PROTESTS TO THE COMPTROLLER GENERAL

     SEC. 1401. PROTEST DEFINED.

       (a) In General.--Paragraph (1) of section 3551 of title 31, 
     United States Code, is amended to read as follows:
       ``(1) The term `protest' means a written objection by an 
     interested party to any of the following:
       ``(A) A solicitation or other request by a Federal agency 
     for offers for a contract for the procurement of property or 
     services.
       ``(B) The cancellation of such a solicitation or other 
     request.
       ``(C) An award or proposed award of such a contract.
       ``(D) A termination or cancellation of an award of such a 
     contract, if the written objection contains an allegation 
     that the termination or cancellation is based in whole or in 
     part on improprieties concerning the award of the 
     contract.''.
       (b) Technical Amendments.--Section 3551 of such title is 
     further amended--
       (1) in paragraph (2)--
       (A) by inserting ``The term'' after ``(2)''; and
       (B) by striking out ``; and'' and inserting in lieu thereof 
     a period; and
       (2) in paragraph (3), by inserting ``The term'' after 
     ``(3)''.

     SEC. 1402. REVIEW OF PROTESTS AND EFFECT ON CONTRACTS PENDING 
                   DECISION.

       (a) Periods for Certain Actions.--Section 3553 of title 31, 
     United States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking out ``one working day 
     of'' and inserting in lieu thereof ``one day after''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking out ``25 working days 
     from'' and inserting in lieu thereof ``35 days after''; and
       (ii) in subparagraph (C), by striking out ``10 working days 
     from'' and inserting in lieu thereof ``15 days after''; and
       (2) in subsection (c)(3), by striking out ``thereafter'' 
     and inserting in lieu thereof ``after the making of such 
     finding''.
       (b) Suspension of Performance.--Subsection (d) of such 
     section is amended to read as follows:
       ``(d)(1) A contractor awarded a Federal agency contract 
     may, during the period described in paragraph (4), begin 
     performance of the contract and engage in any related 
     activities that result in obligations being incurred by the 
     United States under the contract unless the contracting 
     officer responsible for the award of the contract withholds 
     authorization to proceed with performance of the contract.
       ``(2) The contracting officer may withhold an authorization 
     to proceed with performance of the contract during the period 
     described in paragraph (4) if the contracting officer 
     determines in writing that--
       ``(A) a protest is likely to be filed; and
       ``(B) the immediate performance of the contract is not in 
     the best interests of the United States.
       ``(3)(A) If the Federal agency awarding the contract 
     receives notice of a protest in accordance with this section 
     during the period described in paragraph (4)--
       ``(i) the contracting officer may not authorize performance 
     of the contract to begin while the protest is pending; or
       ``(ii) if contract performance was authorized in accordance 
     with paragraph (2) before receipt of the notice, the 
     contracting officer shall immediately direct the contractor 
     to cease performance under the contract and to suspend any 
     related activities that may result in additional obligations 
     being incurred by the United States under that contract.
       ``(B) Performance and related activities suspended pursuant 
     to subparagraph (A)(ii) by reason of a protest may not be 
     resumed while the protest is pending.
       ``(C) The head of the procuring activity may authorize the 
     performance of the contract (notwithstanding a protest of 
     which the Federal agency has notice under this section)--
       ``(i) upon a written finding that--
       ``(I) performance of the contract is in the best interests 
     of the United States; or
       ``(II) urgent and compelling circumstances that 
     significantly affect interests of the United States will not 
     permit waiting for the decision of the Comptroller General 
     concerning the protest; and
       ``(ii) after the Comptroller General is notified of that 
     finding.
       ``(4) The period referred to in paragraphs (2) and (3)(A), 
     with respect to a contract, is the period beginning on the 
     date of the contract award and ending on the later of--
       ``(A) the date that is 10 days after the date of the 
     contract award; or
       ``(B) the date that is 5 days after the debriefing date 
     offered to an unsuccessful offeror for any debriefing that is 
     requested and, when requested, is required.''.

     SEC. 1403. DECISIONS ON PROTESTS.

       (a) Periods for Certain Actions.--Section 3554(a) of title 
     31, United States Code, is amended--
       (1) in paragraph (1), by striking out ``90 working days 
     from'' and inserting in lieu thereof ``120 days after'';
       (2) in paragraph (2), by striking out ``45 calendar days 
     from'' and inserting ``60 days after'';
       (3) by redesignating paragraph (3) as paragraph (4); and
       (4) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) An amendment to a protest that adds a new ground of 
     protest, if timely raised, should be resolved, to the maximum 
     extent practicable, within the time limit established under 
     paragraph (1) of this subsection for final decision of the 
     initial protest. If an amended protest cannot be resolved 
     within such time limit, the Comptroller General may resolve 
     the amended protest through the express option under 
     paragraph (2) of this subsection.''.
       (b) GAO Recommendations on Protests.--
       (1) Implementation of recommendations.--Section 3554 of 
     title 31, United States Code, is further amended in 
     subsection (b) by adding at the end the following new 
     paragraph:
       ``(3) If the Federal agency fails to implement fully the 
     recommendations of the Comptroller General under this 
     subsection with respect to a solicitation for a contract or 
     an award or proposed award of a contract within 60 days after 
     receiving the recommendations, the head of the procuring 
     activity responsible for that contract shall report such 
     failure to the Comptroller General not later than 5 days 
     after the end of such 60-day period.''.
       (2) Federal agency payment of costs.--Subsection (c) of 
     such section is amended to read as follows:
       ``(c)(1) If the Comptroller General determines that a 
     solicitation for a contract or a proposed award or the award 
     of a contract does not comply with a statute or regulation, 
     the Comptroller General may recommend that the Federal agency 
     conducting the procurement pay to an appropriate interested 
     party the costs of--
       ``(A) filing and pursuing the protest, including reasonable 
     attorney's fees and consultant and expert witness fees; and
       ``(B) bid and proposal preparation.
       ``(2) If the Comptroller General recommends under paragraph 
     (1) that a Federal agency pay costs to an interested party, 
     the Federal agency shall--
       ``(A) pay the costs promptly out of funds available to or 
     for the use of the Federal agency; or
       ``(B) if the Federal agency does not make such payment, 
     promptly report to the Comptroller General the reasons for 
     the failure to follow the Comptroller General's 
     recommendation.
       ``(3) If the Comptroller General recommends under paragraph 
     (1) that a Federal agency pay costs to an interested party, 
     the Federal agency and the interested party shall attempt to 
     reach an agreement on the amount of the costs to be paid. If 
     the Federal agency and the interested party are unable to 
     agree on the amount to be paid, the Comptroller General may, 
     upon the request of the interested party, recommend to the 
     Federal agency the amount of the costs that the Federal 
     agency should pay.''.
       (3) Report.--Subsection (e) of such section is amended to 
     read as follows:
       ``(e)(1) In any case in which a Federal agency fails to 
     implement fully a recommendation of the Comptroller General 
     under subsection (b) or (c), the Comptroller General shall 
     promptly submit a report on the matter to the Committee on 
     Governmental Affairs and the Committee on Appropriations of 
     the Senate and to the Committee on Government Operations and 
     the Committee on Appropriations of the House of 
     Representatives. The report shall include--
       ``(A) a comprehensive review of the pertinent procurement, 
     including the circumstances of the failure of the Federal 
     agency to implement a recommendation of the Comptroller 
     General; and
       ``(B) a recommendation regarding whether, in order to 
     correct an inequity or to preserve the integrity of the 
     procurement process, the Congress should consider--
       ``(i) private relief legislation;
       ``(ii) legislative rescission or cancellation of funds;
       ``(iii) further investigation by the Congress; or
       ``(iv) other action.
       ``(2) Not later than January 31 of each year, the 
     Comptroller General shall transmit to the Congress a report 
     containing a summary of each instance in which a Federal 
     agency did not fully implement a recommendation of the 
     Comptroller General under subsection (b) or (c) during the 
     preceding year. The report shall also describe each instance 
     in which a final decision in a protest was not rendered 
     within 120 days after the date the protest is submitted to 
     the Comptroller General.''.
       (4) Requirement for payment in accordance with prior gao 
     determinations.--Amounts to which the Comptroller General 
     declared an interested party to be entitled under section 
     3554 of title 31, United States Code, as in effect 
     immediately before the date of the enactment of this Act, 
     shall, if not paid or otherwise satisfied by the Federal 
     agency concerned before such date, be paid promptly out of 
     funds available to or for the use of the Federal agency.
       (c) Recovery of Costs for Frivolous Protests.--Section 3554 
     of title 31, United States Code, is further amended by adding 
     at the end the following new subsection:
       ``(f) If the Comptroller General expressly finds that a 
     protest or a portion of a protest is frivolous or has not 
     been brought or pursued in good faith, the Comptroller may 
     recommend that the protester or other interested party who 
     joins the protest be liable to the United States for payment 
     of all or that portion of the United States costs, for which 
     such a finding is made, of reviewing the protest, including 
     the fees and other expenses (as defined in section 
     2412(d)(2)(A) of title 28) incurred by the United States in 
     defending the protest. The Federal Acquisition Regulation 
     shall provide guidance under which the head of an agency may 
     initiate action to obtain such costs, unless (A) special 
     circumstances would make such payment unjust, or (B) the 
     protester obtains documents or other information for the 
     first time, after the protest is filed with the Comptroller 
     General, which establishes that the protest or a portion is 
     frivolous or has not been brought in good faith and the 
     protester then promptly withdraws the protest or portion of 
     the protest.''.
       (d) Restriction on Access to Certain Information.--Section 
     3553(f) of title 31, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(f)''; and
       (2) by adding at the end the following:
       ``(2)(A) The Comptroller General may issue protective 
     orders which establish terms, conditions, and restrictions 
     for the provision of any document to a person under paragraph 
     (1), that prohibit or restrict the disclosure by the person 
     of information described in subparagraph (C) that is 
     contained in such a document.
       ``(B) The penalties specified under section 27(i) of the 
     Office of Federal Procurement Policy Act shall apply to the 
     disclosure of information described in subparagraph (C) in 
     violation of a term, condition, or restriction in a 
     protective order under this paragraph by a person that is 
     subject to the protective order.
       ``(C) Information referred to in subparagraphs (A) and (B) 
     is procurement sensitive information, trade secrets, or other 
     proprietary or confidential research, development, or 
     commercial information.
       ``(D) A protective order under this paragraph shall not be 
     considered to authorize the withholding of any document or 
     information from the Congress or an executive agency.''.

     SEC. 1404. REGULATIONS.

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

     PART II--PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING

     SEC. 1431. REVOCATION OF DELEGATIONS OF PROCUREMENT 
                   AUTHORITY.

       Section 111(b)(3) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759(b)(3)) is 
     amended by inserting before the period at the end of the 
     third sentence the following: ``, including the authority to 
     revoke a delegation of authority with respect to a particular 
     contract after award of the contract, except that the 
     Administrator may revoke a delegation after the contract is 
     awarded only when there is a finding of a violation of law or 
     regulation in connection with the contract award.''.

     SEC. 1432. AUTHORITY OF THE GENERAL SERVICES ADMINISTRATION 
                   BOARD OF CONTRACT APPEALS.

       The first sentence of section 111(f)(1) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     759(f)(1)) is amended to read as follows: ``Upon request of 
     an interested party in connection with any procurement that 
     is subject to this section (including any such procurement 
     that is subject to delegation of procurement authority), the 
     board of contract appeals of the General Services 
     Administration (hereafter in this subsection referred to as 
     the `board') shall review, as provided in this subsection, 
     any decision by a contracting officer that is alleged to 
     violate a statute, a regulation, or the conditions of a 
     delegation of procurement authority.''.

     SEC. 1433. PERIODS FOR CERTAIN ACTIONS.

       (a) Suspension of Procurement Authority.--(1) Section 
     111(f)(2)(B) of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759(f)(2)(B)) is amended--
       (A) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively;
       (B) by inserting ``(i)'' after ``(B)''; and
       (C) by adding at the end the following:
       ``(ii) A suspension under this subparagraph shall not 
     preclude the Federal agency concerned from continuing the 
     procurement process up to but not including award of the 
     contract if the Board determines such action is in the best 
     interests of the United States.''.
       (2) Section 111(f) of such Act (40 U.S.C. 759(f)) is 
     amended in paragraph (3) by striking out subparagraph (A) and 
     inserting in lieu thereof the following:
       ``(A)(i) If, with respect to an award of a contract, the 
     board receives notice of a protest under this subsection 
     within the period described in clause (ii), the board shall, 
     at the request of an interested party, hold a hearing to 
     determine whether the board should suspend the procurement 
     authority of the Administrator or the Administrator's 
     delegation of procurement authority for the protested 
     procurement on an interim basis until the board can decide 
     the protest.
       ``(ii) The period referred to in clause (i) is the period 
     beginning on the date on which the contract is awarded and 
     ending at the end of the later of--
       ``(I) the tenth day after the date of contract award; or
       ``(II) the fifth day after the debriefing date offered to 
     an unsuccessful offeror for any debriefing that is requested 
     and, when requested, is required.
       ``(iii) The board shall hold the requested hearing within 5 
     days after the date of the filing of the protest.''.
       (b) Final Decision.--Paragraph (4)(B) of such section 
     111(f) is amended--
       (1) by striking out ``45 working days'' and inserting in 
     lieu thereof ``65 days''; and
       (2) by adding at the end the following: ``An amendment 
     which adds a new ground of protest should be resolved, to the 
     maximum extent practicable, within the time limits 
     established for resolution of the initial protest.''.

     SEC. 1434. DISMISSALS OF PROTESTS.

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

     SEC. 1435. AWARD OF COSTS.

       (a) Award.--Section 111(f)(5) of the Federal Property and 
     Administration Services Act of 1949 (40 U.S.C. 759(f)(5)) is 
     amended by striking out subparagraph (C) and inserting in 
     lieu thereof the following:
       ``(C) Whenever the board makes such a determination, it 
     may, in accordance with section 1304 of title 31, United 
     States Code, further declare an appropriate prevailing party 
     to be entitled to the cost of filing and pursuing the protest 
     (including reasonable attorney's fees and consultant and 
     expert witness fees), and bid and proposal preparation.''.
       (b) Definition of Prevailing Party.--Section 111(f)(9) of 
     such Act (40 U.S.C. 759(f)(9)) is amended by adding at the 
     end the following:
       ``(C) The term `prevailing party', with respect to a 
     determination of the board under paragraph (5)(B) that a 
     challenged action of a Federal agency violates a statute or 
     regulation or the conditions of a delegation of procurement 
     authority issued pursuant to this section, means a party that 
     demonstrated such violation.''.

     SEC. 1436. DISMISSAL AGREEMENTS.

       Section 111(f)(5) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759(f)(5)), as 
     amended by section 1435, is further amended by adding at the 
     end the following new subparagraphs:
       ``(D) Any agreement that provides for the dismissal of a 
     protest and involves a direct or indirect expenditure of 
     appropriated funds shall be submitted to the board and shall 
     be made a part of the public record (subject to any 
     protective order considered appropriate by the board) before 
     dismissal of the protest. If a Federal agency is a party to a 
     settlement agreement, the submission of the agreement 
     submitted to the board shall include a memorandum, signed by 
     the contracting officer concerned, that describes in detail 
     the procurement, the grounds for protest, the Federal 
     Government's position regarding the grounds for protest, the 
     terms of the settlement, and the agency's position regarding 
     the propriety of the award or proposed award of the contract 
     at issue in the protest.
       ``(E) Payment of amounts due from an agency under 
     subparagraph (C) or under the terms of a settlement agreement 
     under subparagraph (D) shall be made from the appropriation 
     made by section 1304 of title 31, United States Code, for the 
     payment of judgments. The Federal agency concerned shall 
     reimburse that appropriation account out of funds available 
     for the procurement.''.

     SEC. 1437. MATTERS TO BE COVERED IN REGULATIONS.

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

     SEC. 1438. DEFINITION OF PROTEST.

       Section 111(f)(9) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759(f)(9)) is 
     amended--
       (1) by amending subparagraph (A) to read as follows:
       ``(A) The term `protest' means a written objection by an 
     interested party to any of the following:
       ``(i) A solicitation or other request by a Federal agency 
     for offers for a contract for the procurement of property or 
     services.
       ``(ii) The cancellation of such a solicitation or other 
     request.
       ``(iii) An award or proposed award of such a contract.
       ``(iv) A termination or cancellation of an award of such a 
     contract, if the written objection contains an allegation 
     that the termination or cancellation is based in whole or in 
     part on improprieties concerning the award of the 
     contract.''; and
       (2) by capitalizing the first letter of the first word in 
     subparagraph (B).

     SEC. 1439. OVERSIGHT OF ACQUISITION OF AUTOMATIC DATA 
                   PROCESSING EQUIPMENT BY FEDERAL AGENCIES.

       Section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759) is amended by adding at 
     the end the following new subsection:
       ``(h) Data Collection.--(1) The Administrator shall collect 
     and compile data regarding the procurement of automatic data 
     processing equipment under this section. The data collected 
     and compiled shall include, at a minimum, with regard to each 
     procurement the following:
       ``(A) The procuring agency.
       ``(B) The contractor.
       ``(C) The automatic data processing equipment and services 
     procured.
       ``(D) The manufacturer of the equipment procured.
       ``(E) The amount of the contract, to the extent that the 
     amount is not proprietary information.
       ``(F) The type of contract used.
       ``(G) The extent of competition for award.
       ``(H) Compatibility restrictions.
       ``(I) Significant modifications of the contract.
       ``(J) Contract price, to the extent that the price is not 
     proprietary information.
       ``(2) The head of each Federal agency shall report to the 
     Administrator in accordance with regulations issued by the 
     Administrator all information that the Administrator 
     determines necessary in order to satisfy the requirements in 
     paragraph (1).
       ``(3) The Administrator--
       ``(A) shall carry out a systematic, periodic review of 
     information received under this subsection;
       ``(B) shall use such information, as appropriate, to 
     determine the compliance of Federal agencies with the 
     requirements of this section; and
       ``(C) may take appropriate corrective action regarding an 
     agency's authority to lease and purchase automatic data 
     processing equipment upon any substantial failure by the head 
     of the agency to report to the Administrator in accordance 
     with this subsection.
       ``(4) The Administrator shall take appropriate corrective 
     action upon failure of a Federal agency to comply with the 
     terms of any delegation of authority to lease or purchase 
     automatic data processing equipment or failure to comply with 
     any applicable law or regulation.
       ``(5) The Administrator shall require in the regulations 
     implementing this subsection that (A) data collected pursuant 
     to this subsection be drawn from existing Federal agency 
     information; and (B) no new or additional information 
     reporting requirements may be imposed on offerors or 
     contractors to collect such data.''.
           Subtitle E--Policy, Definitions, and Other Matters

                  PART I--ARMED SERVICES ACQUISITIONS

     SEC. 1501. CONGRESSIONAL DEFENSE PROCUREMENT POLICY.

       Section 2301 of title 10, United States Code, is amended to 
     read as follows:

     ``Sec. 2301. Congressional defense procurement policy

       ``(a) The Congress finds that in order to ensure national 
     defense preparedness; conserve fiscal resources; enhance 
     science and technology, research and development, and 
     production capability; provide for continued development and 
     preservation of an efficient and responsive defense 
     industrial base; and ensure the financial and ethical 
     integrity of defense procurement programs, it is in the 
     interest of the United States that property and services be 
     acquired for the Department of Defense in the most timely, 
     economic, and efficient manner consistent with achieving an 
     optimum balance among efficient processes, full and open 
     access to the procurement system, and sound implementation of 
     socioeconomic policies. It is therefore the policy of 
     Congress that--
       ``(1) full and open competitive procedures shall be used by 
     the Department of Defense in accordance with the requirements 
     of this chapter;
       ``(2) to the maximum extent practicable, the Department of 
     Defense shall acquire commercial items to meet its needs and 
     shall require prime contractors and subcontractors, at all 
     levels, which furnish other than commercial items, to 
     incorporate to the maximum extent practicable commercial 
     items as components of items being supplied to the 
     Department;
       ``(3) when commercial items and components are not 
     available, practicable, or cost effective, the Department of 
     Defense shall acquire, and shall require prime contractors 
     and subcontractors to incorporate, nondevelopmental items and 
     components to the maximum extent practicable;
       ``(4) property and services for the Department of Defense 
     may be acquired by any kind of contract, other than cost-
     plus-a-percentage-of-cost contracts, but including multiyear 
     contracts, that will promote the interest of the United 
     States and will provide for appropriate allocation of risk 
     between the Government and the contractor with due regard to 
     the nature of the property or services to be acquired;
       ``(5) contracts, when appropriate, shall provide incentives 
     to contractors to improve productivity through investment in 
     capital facilities, equipment, flexible manufacturing 
     processes, and advanced and dual-use technology;
       ``(6) contracts for advance procurement of components, 
     parts, and materials necessary for manufacture or for 
     logistics support of a weapon system should, if practicable, 
     be entered into in a manner to achieve economic-lot purchases 
     and more efficient production rates;
       ``(7) procurement protests and disputes shall be fairly and 
     expeditiously resolved through uniform interpretation of 
     relevant laws and regulations;
       ``(8) the head of an agency shall use advance procurement 
     planning and market research and develop contract 
     requirements in such a manner as is necessary to obtain full 
     and open competition with due regard to the nature of the 
     property or services to be acquired, but may restrict 
     competitions to suppliers of commercial items to foster 
     accomplishment of this objective; and
       ``(9) the head of an agency shall develop and maintain an 
     acquisition career management program to ensure a 
     professional acquisition work force in accordance with the 
     requirements of chapter 87 of this title.
       ``(b) Further, it is the policy of Congress that 
     procurement policies and procedures for the agencies named in 
     section 2303 of this title shall, in accordance with the 
     requirements of this title--
       ``(1) be issued in accordance with and conform to the 
     requirements of sections 22 and 25 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 418b and 421);
       ``(2) promote and implement the Congressional policies in 
     subsection (a) and in section 2 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 401);
       ``(3) be implemented to support the requirements of such 
     agencies in time of war or national emergency as well as in 
     peacetime;
       ``(4) promote responsiveness of the procurement system to 
     agency needs by--
       ``(A) simplifying and streamlining procurement processes, 
     and
       ``(B) providing incentives to encourage contractors to take 
     actions and make recommendations that would reduce the costs 
     of property or services to be acquired;
       ``(5) facilitate the acquisition of commercial items and 
     commercial components at or based on commercial market 
     prices, without requiring contractors to change their 
     business practices; and
       ``(6) promote the acquisition and use of commercial items, 
     commercial components, and nondevelopmental items by 
     requiring descriptions of agency requirements, whenever 
     practicable, in terms of functions to be performed or 
     performance required.
       ``(c) Further, it is the policy of Congress that purchases 
     and contracts entered into under this chapter should be 
     placed with small business concerns and concerns that are 
     small disadvantaged businesses in conformance with section 
     2323 of this title and subsection (g) of section 15 of the 
     Small Business Act (15 U.S.C. 644).
       ``(d) It is also the policy of Congress that qualified 
     nonprofit agencies for the blind or severely handicapped (as 
     defined in section 2410d(b) of this title) shall be afforded 
     the maximum practicable opportunity to provide approved 
     commodities and services (as defined in such section) as 
     subcontractors and suppliers under contracts awarded by the 
     Department of Defense.''.

     SEC. 1502. DEFINITIONS.

       Section 2302 of title 10, United States Code, is amended--
       (1) by striking out paragraphs (3) and (7);
       (2) by redesignating paragraph (6) as paragraph (12);
       (3) by redesignating paragraphs (2), (4), and (5) as 
     paragraphs (5), (8), and (9), respectively;
       (4) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) The term `procurement' has the same meaning provided 
     such term in section 4(2) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(2)).
       ``(3) The term `procurement system' has the same meaning 
     provided such term in section 4(3) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(3)).
       ``(4) The term `standards' has the same meaning provided 
     such term in section 4(4) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(4)). '';
       (5) by inserting after paragraph (5) (as so redesignated) 
     the following new paragraphs:
       ``(6) The term `full and open competition' has the same 
     meaning provided such term in section 4(6) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(6)).
       ``(7) The term `responsible source' has the same meaning 
     provided such term in section 4(7) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(7)). ''; and
       (6) by inserting after paragraph (9) (as so redesignated) 
     the following new paragraphs:
       ``(10) The terms `item', `item of supply', and `supplies' 
     have the meaning provided in section 4(10) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(10)).
       ``(11) The term `simplified acquisition threshold' has the 
     meaning provided that term in section 4A of the Office of 
     Federal Procurement Policy Act.
       ``(12) The terms `commercial item', `nondevelopmental 
     item', `component', and `commercial component' have the 
     meanings provided those terms in section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403).''.

     SEC. 1503. DELEGATION OF PROCUREMENT FUNCTIONS.

       (a) Consolidation of Delegation Authority.--(1) Section 
     2311 of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 2311. Assignment and delegation of procurement 
       functions and responsibilities

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

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

     SEC. 1504. DETERMINATIONS AND DECISIONS.

       Section 2310 of title 10, United States Code, is amended to 
     read as follows:

     ``Sec. 2310. Determinations and decisions

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

     SEC. 1505. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL ACTIONS.

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

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

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

     SEC. 1507. REGULATIONS FOR BIDS.

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

                 PART II--CIVILIAN AGENCY ACQUISITIONS

     SEC. 1551. DEFINITIONS.

       Section 309 of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 259) is amended by adding at 
     the end the following new subsections:
       ``(d) The term `simplified acquisition threshold' has the 
     meaning provided that term by section 4A of the Office of 
     Federal Procurement Policy Act.
       ``(e) The terms `commercial item', `nondevelopmental item', 
     `component', and `commercial component' have the meanings 
     provided such terms by section 4 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403).''.

     SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS.

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

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

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

     SEC. 1553. DETERMINATIONS AND DECISIONS.

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

     ``SEC. 313. DETERMINATIONS AND DECISIONS.

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

     SEC. 1554. REPEALS.

       The laws of the United States are amended to read as if the 
     following sections of law had not been enacted:
       (1) Section 630 of Public Law 102-393.
       (2) Section 401 of Public Law 103-123.

     SEC. 1555. COOPERATIVE PURCHASING.

       Subsection (b) of section 201 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481), is 
     amended to read as follows:
       ``(b)(1) The Administrator shall, as far as practicable, 
     provide any of the services specified in subsection (a) of 
     this section to any other Federal agency, mixed-ownership 
     Government corporation (as defined in section 9101 of title 
     31, United States Code), or the District of Columbia, upon 
     its request.
       ``(2)(A) The Administrator may provide for the use of 
     Federal supply schedules of the General Services 
     Administration by any of the following entities upon request:
       ``(i) A State, any department or agency of a State, and any 
     political subdivision of a State, including a local 
     government.
       ``(ii) The District of Columbia.
       ``(iii) The Commonwealth of Puerto Rico.
       ``(iv) The government of an Indian tribe (as defined in 
     section 4(e) of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b(e))).
       ``(B) Subparagraph (A) may not be construed to authorize an 
     entity referred to in that subparagraph to order existing 
     stock or inventory from federally owned and operated, or 
     federally owned and contractor operated, supply depots, 
     warehouses, or similar facilities.
       ``(C) In any case in which an entity listed in subparagraph 
     (A) uses a Federal supply schedule, the Administrator shall 
     require the entity to reimburse the General Services 
     Administration for any administrative costs of using the 
     schedule.
       ``(3)(A) Upon the request of a qualified nonprofit agency 
     for the blind or other severely handicapped that is to 
     provide a commodity or service to the Federal Government 
     under the Javits-Wagner-O'Day Act, the Administrator may 
     provide any of the services specified in subsection (a) to 
     such agency to the extent practicable.
       ``(B) A nonprofit agency receiving services under the 
     authority of subparagraph (A) shall use the services directly 
     in making or providing an approved commodity or approved 
     service to the Federal Government.
       ``(C) In this paragraph:
       ``(i) The term `qualified nonprofit agency for the blind or 
     other severely handicapped' means--
       ``(I) a qualified nonprofit agency for the blind, as 
     defined in section 5(3) of the Javits-Wagner-O'Day Act (41 
     U.S.C. 48b(3)); and
       ``(II) a qualified nonprofit agency for other severely 
     handicapped, as defined in section 5(4) of such Act (41 
     U.S.C. 48b(4)).
       ``(ii) The terms `approved commodity' and `approved 
     service' mean a commodity and a service, respectively, that 
     has been determined by the Committee for Purchase from the 
     Blind and Other Severely Handicapped under section 2 of the 
     Javits-Wagner-O'Day Act (41 U.S.C. 47) to be suitable for 
     procurement by the Federal Government.
       ``(iii) The term `Javits-Wagner-O'Day Act' means the Act 
     entitled `An Act to create a Committee on Purchases of Blind-
     made Products, and for other purposes', approved June 25, 
     1938 (41 U.S.C. 46-48c), that was revised and reenacted in 
     the Act of June 23, 1971 (85 Stat. 77).''.
                   TITLE II--CONTRACT ADMINISTRATION
                      Subtitle A--Contract Payment

                  PART I--ARMED SERVICES ACQUISITIONS

     SEC. 2001. CONTRACT FINANCING.

       (a) Reorganization of Principal Authority Provision.--
     Section 2307 of title 10, United States Code, is amended--
       (1) by striking out the section heading and inserting in 
     lieu thereof the following:

     ``Sec. 2307. Contract financing'';

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

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

     SEC. 2002. REPEAL OF VOUCHERING PROCEDURES SECTION.

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

                 PART II--CIVILIAN AGENCY ACQUISITIONS

     SEC. 2051. CONTRACT FINANCING.

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

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

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

                    PART III--ACQUISITIONS GENERALLY

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

       Section 3903(a)(1) of title 31, United States Code, is 
     amended--
       (1) by striking out ``or'' at the end of subparagraph (A);
       (2) by inserting ``or'' after the semicolon at the end of 
     subparagraph (B); and
       (3) by adding at the end the following new subparagraph:
       ``(C) in any case in which the Government delays making 
     final payment under the contract for more than one year after 
     the date on which the contractor completes all obligations 
     under the contract (including submission to the Government of 
     final incurred costs for all years covered by the contract), 
     the date on which the contractor completes such 
     obligations;''.
                      Subtitle B--Cost Principles

                  PART I--ARMED SERVICES ACQUISITIONS

     SEC. 2101. ALLOWABLE CONTRACT COSTS.

       (a) Extension of Coverage to Coast Guard and NASA; Other 
     Miscellaneous Amendments.--Section 2324 of title 10, United 
     States Code, is amended as follows:
       (1) Subsection (a) is amended--
       (A) by inserting after ``(a)'' the following: ``Indirect 
     Cost That Violates a FAR Cost Principle.--'';
       (B) by striking out ``Secretary of Defense'' and inserting 
     in lieu thereof ``head of an agency'';
       (C) by striking out ``Department of Defense'' and inserting 
     in lieu thereof ``agency''; and
       (D) by striking out ``the Department of Defense 
     Supplement'' and inserting in lieu thereof ``applicable 
     agency supplement''.
       (2) Subsection (b) is amended--
       (A) by inserting after ``(b)'' the following: ``Penalty for 
     Violation of Cost Principle.--'';
       (B) in subparagraph (B) of paragraph (1) by striking out 
     ``regulations issued by the Secretary'' and inserting in lieu 
     thereof ``provisions in the Federal Acquisition Regulation''; 
     and
         (C) by striking out ``Secretary'' each place it appears 
     and inserting in lieu thereof ``head of the agency''.
       (3) Subsection (c) is amended--
       (A) by inserting after ``(c)'' the following: ``Waiver of 
     Penalty.--''; and
       (B) by striking out ``The Secretary shall prescribe 
     regulations providing'' in the first sentence and inserting 
     in lieu thereof ``The Federal Acquisition Regulation shall 
     provide''.
       (4) Subsection (d) is amended--
       (A) by inserting after ``(d)'' the following: 
     ``Applicability of Contract Disputes Procedure to 
     Disallowance of Cost and Assessment of Penalty.--''; and
       (B) by striking out ``the Secretary'' and inserting in lieu 
     thereof ``the head of an agency''.
       (5) Subsection (e) is amended--
       (A) by inserting after ``(e)'' the following: ``Specific 
     Costs Not Allowable.--'';
       (B) in subparagraph (D) of paragraph (1), by striking out 
     ``regulations of the Secretary of Defense'' and inserting in 
     lieu thereof ``provisions of the Federal Acquisition 
     Regulation'';
       (C) in subparagraph (M) of paragraph (1), by striking out 
     ``regulations prescribed by the Secretary of Defense'' and 
     inserting in lieu thereof ``the Federal Acquisition 
     Regulation'';
       (D) in subparagraph (A) of paragraph (2), by inserting ``of 
     Defense'' after ``Secretary'' the first place it occurs;
       (E) in subparagraph (C) of paragraph (2), by striking out 
     ``head of the agency'' in the first sentence and inserting in 
     lieu thereof ``Secretary of Defense'';
       (F) in subparagraph (A) of paragraph (3), by striking out 
     ``regulations prescribed by the Secretary'' and inserting in 
     lieu thereof ``the Federal Acquisition Regulation''; and
       (G) by amending paragraph (4) to read as follows:
       ``(4) The provisions of the Federal Acquisition Regulation 
     implementing this section may establish appropriate 
     definitions, exclusions, limitations, and qualifications.''.
       (6) Subsection (f) is amended--
       (A) in paragraph (1)--
       (i) by striking out ``(1)'' and all that follows through 
     ``The amendments'' and inserting in lieu thereof the 
     following: ``Required Regulations.--The Federal Acquisition 
     Regulation shall contain provisions on the allowability of 
     contractor costs. Such provisions'', and
       (ii) by striking out ``These regulations'' and inserting in 
     lieu thereof ``The regulations''; and
       (B) in paragraphs (2), (3), and (4)--
       (i) by striking out ``defense'' before ``contract auditor'' 
     each place it appears, and
       (ii) by striking out ``regulation'' each place it appears 
     and inserting in lieu thereof ``Federal Acquisition 
     Regulation''.
       (7) Subsection (g) is amended to read as follows:
       ``(g) Applicability of Regulations to Subcontractors.--The 
     regulations referred to in subsections (e) and (f)(1) shall 
     require prime contractors of a covered contract, to the 
     maximum extent practicable, to apply the provisions of such 
     regulations to all subcontractors of the covered contract.''.
       (8) Subsection (h) is amended--
       (A) by inserting after ``(h)'' the following: ``Contractor 
     Certification Required.--'';
       (B) by striking out ``by the Secretary'' in paragraph (1) 
     and inserting in lieu thereof ``in the Federal Acquisition 
     Regulation''; and
       (C) by striking out ``Secretary of Defense'' in paragraph 
     (2) and inserting in lieu thereof ``head of the agency''.
       (9) Subsection (i) is amended by striking out ``The 
     submission to the Department of Defense'' and inserting in 
     lieu thereof ``Penalties for Submission of Cost Known as Not 
     Allowable.--The submission to an agency''.
       (10) Subsection (j) is amended--
       (A) by inserting after ``(j)'' the following: ``Contractor 
     To Have Burden of Proof.--''; and
       (B) by striking out ``United States Claims Court'' and 
     inserting in lieu thereof ``United States Court of Federal 
     Claims''.
       (11) Subsection (k) is amended--
       (A) by inserting after ``(k)'' the following: ``Proceeding 
     Costs Not Allowable.--'';
       (B) in paragraph (2), by striking out ``decision by the 
     Department of Defense--'' and inserting in lieu thereof 
     ``decision--''; and
       (C) in paragraph (4)--
       (i) by inserting after ``head of the agency'' the 
     following: ``or Secretary of the military department 
     concerned'',
       (ii) by striking out ``under regulations prescribed by such 
     agency head'' and inserting in lieu thereof ``in accordance 
     with the Federal Acquisition Regulation'',
       (iii) by inserting ``or Secretary'' after ``agency head'', 
     and
       (iv) by inserting before the period at the end the 
     following: ``or military department''.
       (b) Covered Contract Defined.--Such section is further 
     amended by striking out subsections (l) and (m) and inserting 
     in lieu thereof the following:
       ``(l) Definitions.--In this section:
       ``(1)(A) The term `covered contract' means a contract for 
     an amount in excess of $500,000 that is entered into by the 
     head of an agency, except that such term does not include a 
     fixed-price contract without cost incentives or any contract 
     for the purchase of commercial items.
       ``(B) The dollar amount in subparagraph (A) shall be 
     adjusted on October 1 of each year divisible by 5 to the 
     equivalent amount in constant fiscal year 1993 dollars 
     (rounded to the nearest $10,000).
       ``(2) The term `head of the agency' or `agency head' does 
     not include the Secretary of a military department.
       ``(3) The term `agency' means the Department of Defense, 
     the Coast Guard, and the National Aeronautics and Space 
     Administration.''.
       (c) Regulations.--The regulations of the Secretary of 
     Defense implementing section 2324 of title 10, United States 
     Code, shall remain in effect until the Federal Acquisition 
     Regulation is revised to implement the amendments made by 
     this section.

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

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

                 PART II--CIVILIAN AGENCY ACQUISITIONS

     SEC. 2151. ALLOWABLE CONTRACT COSTS.

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

     ``SEC. 306. ALLOWABLE COSTS.

       ``(a) Indirect Cost That Violates a FAR Cost Principle.--An 
     executive agency shall require that a covered contract 
     provide that if the contractor submits to the executive 
     agency a proposal for settlement of indirect costs incurred 
     by the contractor for any period after such costs have been 
     accrued and if that proposal includes the submission of a 
     cost which is unallowable because the cost violates a cost 
     principle in the Federal Acquisition Regulation (referred to 
     in section 25(c)(1) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 421(c)(1)) or an executive agency 
     supplement to the Federal Acquisition Regulation, the cost 
     shall be disallowed.
       ``(b) Penalty for Violation of Cost Principle.--(1) 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 United 
     States for the use of any funds which a contractor has been 
     paid in excess of the amount to which the contractor was 
     entitled.
       ``(2) If the 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 
     such contractor before the submission of such proposal, the 
     executive agency shall assess a penalty against the 
     contractor in an amount equal to two times the amount of the 
     disallowed cost allocated to covered contracts for which a 
     proposal for settlement of indirect costs has been submitted.
       ``(c) Waiver of Penalty.--The Federal Acquisition 
     Regulation shall provide for a penalty under subsection (b) 
     to be waived in the case of a contractor's proposal for 
     settlement of indirect costs when--
       ``(1) the contractor withdraws the proposal before the 
     formal initiation of an audit of the proposal by the Federal 
     Government and resubmits a revised proposal;
       ``(2) the amount of unallowable costs subject to the 
     penalty is insignificant; or
       ``(3) the contractor demonstrates, to the contracting 
     officer's satisfaction, that--
       ``(A) it has established appropriate policies and personnel 
     training and an internal control and review system that 
     provide assurances that unallowable costs subject to 
     penalties are precluded from being included in the 
     contractor's proposal for settlement of indirect costs; and
       ``(B) the unallowable costs subject to the penalty were 
     inadvertently incorporated into the proposal.
       ``(d) Applicability of Contract Disputes Procedure to 
     Disallowance of Cost and Assessment of Penalty.--An action of 
     an executive agency under subsection (a) or (b)--
       ``(1) shall be considered a final decision for the purposes 
     of section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 
     605); and
       ``(2) is appealable in the manner provided in section 7 of 
     such Act (41 U.S.C. 606).
       ``(e) Specific Costs Not Allowable.--(1) The following 
     costs are not allowable under a covered contract:
       ``(A) Costs of entertainment, including amusement, 
     diversion, and social activities, and any costs directly 
     associated with such costs (such as tickets to shows or 
     sports events, meals, lodging, rentals, transportation, and 
     gratuities).
       ``(B) Costs incurred to influence (directly or indirectly) 
     legislative action on any matter pending before Congress or a 
     State legislature.
       ``(C) Costs incurred in defense of any civil or criminal 
     fraud proceeding or similar proceeding (including filing of 
     any false certification) brought by the United States where 
     the contractor is found liable or had pleaded nolo contendere 
     to a charge of fraud or similar proceeding (including filing 
     of a false certification).
       ``(D) Payments of fines and penalties resulting from 
     violations of, or failure to comply with, Federal, State, 
     local, or foreign laws and regulations, except when incurred 
     as a result of compliance with specific terms and conditions 
     of the contract or specific written instructions from the 
     contracting officer authorizing in advance such payments in 
     accordance with applicable provisions of the Federal 
     Acquisition Regulation.
       ``(E) Costs of membership in any social, dining, or country 
     club or organization.
       ``(F) Costs of alcoholic beverages.
       ``(G) Contributions or donations, regardless of the 
     recipient.
       ``(H) Costs of advertising designed to promote the 
     contractor or its products.
       ``(I) Costs of promotional items and memorabilia, including 
     models, gifts, and souvenirs.
       ``(J) Costs for travel by commercial aircraft which exceed 
     the amount of the standard commercial fare.
       ``(K) Costs incurred in making any payment (commonly known 
     as a `golden parachute payment') which is--
       ``(i) in an amount in excess of the normal severance pay 
     paid by the contractor to an employee upon termination of 
     employment; and
       ``(ii) is paid to the employee contingent upon, and 
     following, a change in management control over, or ownership 
     of, the contractor or a substantial portion of the 
     contractor's assets.
       ``(L) Costs of commercial insurance that protects against 
     the costs of the contractor for correction of the 
     contractor's own defects in materials or workmanship.
       ``(M) Costs of severance pay paid by the contractor to 
     foreign nationals employed by the contractor under a service 
     contract performed outside the United States, to the extent 
     that the amount of severance pay paid in any case exceeds the 
     amount paid in the industry involved under the customary or 
     prevailing practice for firms in that industry providing 
     similar services in the United States, as determined under 
     the Federal Acquisition Regulation.
       ``(N) Costs of severance pay paid by the contractor to a 
     foreign national employed by the contractor under a service 
     contract performed in a foreign country if the termination of 
     the employment of the foreign national is the result of the 
     closing of, or the curtailment of activities at, a United 
     States facility in that country at the request of the 
     government of that country.
       ``(O) Costs incurred by a contractor in connection with any 
     criminal, civil, or administrative proceeding commenced by 
     the United States or a State, to the extent provided in 
     subsection (k).
       ``(2)(A) Pursuant to the Federal Acquisition Regulation and 
     subject to the availability of appropriations, an executive 
     agency, in awarding a covered contract, may waive the 
     application of the provisions of paragraphs (1)(M) and (1)(N) 
     to that contract if the executive agency determines that--
       ``(i) the application of such provisions to the contract 
     would adversely affect the continuation of a program, 
     project, or activity that provides significant support 
     services for employees of the executive agency posted outside 
     the United States;
       ``(ii) the contractor has taken (or has established plans 
     to take) appropriate actions within the contractor's control 
     to minimize the amount and number of incidents of the payment 
     of severance pay by the contractor to employees under the 
     contract who are foreign nationals; and
       ``(iii) the payment of severance pay is necessary in order 
     to comply with a law that is generally applicable to a 
     significant number of businesses in the country in which the 
     foreign national receiving the payment performed services 
     under the contract or is necessary to comply with a 
     collective bargaining agreement.
       ``(B) An executive agency shall include in the solicitation 
     for a covered contract a statement indicating--
       ``(i) that a waiver has been granted under subparagraph (A) 
     for the contract; or
       ``(ii) whether the executive agency will consider granting 
     such a waiver, and, if the executive agency will consider 
     granting a waiver, the criteria to be used in granting the 
     waiver.
       ``(C) An executive agency shall make the final 
     determination regarding whether to grant a waiver under 
     subparagraph (A) with respect to a covered contract before 
     award of the contract.
       ``(3) The provisions of the Federal Acquisition Regulation 
     implementing this section may establish appropriate 
     definitions, exclusions, limitations, and qualifications. Any 
     submission by a contractor of costs which are incurred by the 
     contractor and which 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 such costs 
     have been accrued', as used in this section.
       ``(f) Required Regulations.--(1) The Federal Acquisition 
     Regulation shall contain provisions on the allowability of 
     contractor costs. Such provisions shall define in detail and 
     in specific terms those costs which are unallowable, in whole 
     or in part, under covered contracts. The regulations shall, 
     at a minimum, clarify the cost principles applicable to 
     contractor costs of the following:
       ``(A) Air shows.
       ``(B) Membership in civic, community, and professional 
     organizations.
       ``(C) Recruitment.
       ``(D) Employee morale and welfare.
       ``(E) Actions to influence (directly or indirectly) 
     executive branch action on regulatory and contract matters 
     (other than costs incurred in regard to contract proposals 
     pursuant to solicited or unsolicited bids).
       ``(F) Community relations.
       ``(G) Dining facilities.
       ``(H) Professional and consulting services, including legal 
     services.
       ``(I) Compensation.
       ``(J) Selling and marketing.
       ``(K) Travel.
       ``(L) Public relations.
       ``(M) Hotel and meal expenses.
       ``(N) Expense of corporate aircraft.
       ``(O) Company-furnished automobiles.
       ``(P) Advertising.
       ``(2) The Federal Acquisition Regulation shall require that 
     a contracting officer not resolve any questioned costs until 
     the contracting officer has obtained--
       ``(A) adequate documentation with respect to such costs; 
     and
       ``(B) the opinion of the contract auditor on the 
     allowability of such costs.
       ``(3) 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.
       ``(4) 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 such a manner that the amount of 
     the individual questioned costs that are paid will be 
     reflected in the settlement.
       ``(g) Applicability of Regulations to Subcontractors.--The 
     regulations referred to in subsections (e) and (f)(1) shall 
     require prime contractors of a covered contract, to the 
     maximum extent practicable, to apply the provisions of such 
     regulations to all subcontractors of the covered contract.
       ``(h) Contractor Certification Required.--(1) A proposal 
     for settlement of indirect costs applicable to a covered 
     contract shall include a certification by an official of the 
     contractor that, to the best of the certifying official's 
     knowledge and belief, all indirect costs included in the 
     proposal are allowable. Any such certification shall be in a 
     form prescribed in the Federal Acquisition Regulation.
       ``(2) An executive agency may, in an exceptional case, 
     waive the requirement for certification under paragraph (1) 
     in the case of any contract if the agency--
       ``(A) determines in such case that it would be in the 
     interest of the United States to waive such certification; 
     and
       ``(B) states in writing the reasons for that determination 
     and makes such determination available to the public.
       ``(i) Penalties for Submission of Cost Known as Not 
     Allowable.--The submission to an executive agency of a 
     proposal for settlement of costs for any period after such 
     costs have been accrued that includes a cost that is 
     expressly specified by statute or regulation as being 
     unallowable, with the knowledge that such cost is 
     unallowable, shall be subject to the provisions of section 
     287 of title 18, United States Code, and section 3729 of 
     title 31, United States Code.
       ``(j) Contractor To Have Burden of Proof.--In a proceeding 
     before a board of contract appeals, the United States Court 
     of Federal Claims, or any other Federal court in which the 
     reasonableness of indirect costs for which a contractor seeks 
     reimbursement from the United States is in issue, the burden 
     of proof shall be upon the contractor to establish that those 
     costs are reasonable.
       ``(k) Proceeding Costs Not Allowable.--(1) Except as 
     otherwise provided in this subsection, costs incurred by a 
     contractor in connection with any criminal, civil, or 
     administrative proceeding commenced by the United States or a 
     State are not allowable as reimbursable costs under a covered 
     contract if the proceeding (A) relates to a violation of, or 
     failure to comply with, a Federal or State statute or 
     regulation, and (B) results in a disposition described in 
     paragraph (2).
       ``(2) A disposition referred to in paragraph (1)(B) is any 
     of the following:
       ``(A) In the case of a criminal proceeding, a conviction 
     (including a conviction pursuant to a plea of nolo 
     contendere) by reason of the violation or failure referred to 
     in paragraph (1).
       ``(B) In the case of a civil or administrative proceeding 
     involving an allegation of fraud or similar misconduct, a 
     determination of contractor liability on the basis of the 
     violation or failure referred to in paragraph (1).
       ``(C) In the case of any civil or administrative 
     proceeding, the imposition of a monetary penalty by reason of 
     the violation or failure referred to in paragraph (1).
       ``(D) A final decision--
       ``(i) to debar or suspend the contractor,
       ``(ii) to rescind or void the contract, or
       ``(iii) to terminate the contract for default,

     by reason of the violation or failure referred to in 
     paragraph (1).
       ``(E) A disposition of the proceeding by consent or 
     compromise if such action could have resulted in a 
     disposition described in subparagraph (A), (B), (C), or (D).
       ``(3) In the case of a proceeding referred to in paragraph 
     (1) that is commenced by the United States and is resolved by 
     consent or compromise pursuant to an agreement entered into 
     by a contractor and the United States, the costs incurred by 
     the contractor in connection with such proceeding that are 
     otherwise not allowable as reimbursable costs under such 
     paragraph may be allowed to the extent specifically provided 
     in such agreement.
       ``(4) In the case of a proceeding referred to in paragraph 
     (1) that is commenced by a State, the executive agency that 
     awarded the covered contract involved in the proceeding may 
     allow the costs incurred by the contractor in connection with 
     such proceeding as reimbursable costs if the executive agency 
     determines, in accordance with the Federal Acquisition 
     Regulation, that the costs were incurred as a result of (A) a 
     specific term or condition of the contract, or (B) specific 
     written instructions of the executive agency.
       ``(5)(A) Except as provided in subparagraph (C), costs 
     incurred by a contractor in connection with a criminal, 
     civil, or administrative proceeding commenced by the United 
     States or a State in connection with a covered contract may 
     be allowed as reimbursable costs under the contract if such 
     costs are not disallowable under paragraph (1), but only to 
     the extent provided in subparagraph (B).
       ``(B)(i) The amount of the costs allowable under 
     subparagraph (A) in any case may not exceed the amount equal 
     to 80 percent of the amount of the costs incurred, to the 
     extent that such costs are determined to be otherwise 
     allowable and allocable under the Federal Acquisition 
     Regulation.
       ``(ii) Regulations issued for the purpose of clause (i) 
     shall provide for appropriate consideration of the complexity 
     of procurement litigation, generally accepted principles 
     governing the award of legal fees in civil actions involving 
     the United States as a party, and such other factors as may 
     be appropriate.
       ``(C) In the case of a proceeding referred to in 
     subparagraph (A), contractor costs otherwise allowable as 
     reimbursable costs under this paragraph are not allowable if 
     (i) such proceeding involves the same contractor misconduct 
     alleged as the basis of another criminal, civil, or 
     administrative proceeding, and (ii) the costs of such other 
     proceeding are not allowable under paragraph (1).
       ``(6) In this subsection:
       ``(A) The term `proceeding' includes an investigation.
       ``(B) The term `costs', with respect to a proceeding--
       ``(i) means all costs incurred by a contractor, whether 
     before or after the commencement of any such proceeding; and
       ``(ii) includes--
       ``(I) administrative and clerical expenses;
       ``(II) the cost of legal services, including legal services 
     performed by an employee of the contractor;
       ``(III) the cost of the services of accountants and 
     consultants retained by the contractor; and
       ``(IV) the pay of directors, officers, and employees of the 
     contractor for time devoted by such directors, officers, and 
     employees to such proceeding.
       ``(C) The term `penalty' does not include restitution, 
     reimbursement, or compensatory damages.
       ``(l) Covered Contract Defined.--(1) In this section, the 
     term `covered contract' means a contract for an amount in 
     excess of $500,000 that is entered into by an executive 
     agency, except that such term does not include a fixed-price 
     contract without cost incentives or any contract for the 
     purchase of commercial items.
       ``(2) The dollar amount in paragraph (1) shall be adjusted 
     on October 1 of each year divisible by 5 to the equivalent 
     amount in constant fiscal year 1993 dollars (rounded to the 
     nearest $10,000).''.

     SEC. 2152. REVISION OF COST PRINCIPLE RELATING TO 
                   ENTERTAINMENT, GIFT, AND RECREATION COSTS FOR 
                   CONTRACTOR EMPLOYEES.

       (a) Costs Not Allowable.--The costs of entertainment, 
     gifts, or recreation for employees of a contractor or members 
     of their families that are provided by the contractor to 
     improve employee morale or performance or for any other 
     purpose are not allowable under a covered contract unless, 
     within 120 days of the date of the enactment of this Act, the 
     Federal Acquisition Regulatory Council prescribes amendments 
     to the Federal Acquisition Regulation specifying 
     circumstances under which such costs are allowable under a 
     covered contract. At a minimum, such amendments shall ensure 
     that costs specifically not allowable under the entertainment 
     cost principle (FAR 31.205-14) are not allowable under any 
     other cost principle.
       (b) Definitions.--In this section:
       (1) The term ``employee'' includes officers and directors 
     of a contractor.
       (2) The term ``covered contract'' has the meaning given 
     such term in section 2324(l) of title 10, United States Code 
     (as amended by section 2101(b)), or section 306(l) of the 
     Federal Property and Administrative Services Act of 1949 (as 
     added by section 2151).
       (c) Effective Date.--The provisions of subsection (a), 
     including any amendments to the Federal Acquisition 
     Regulation prescribed under that subsection, shall take 
     effect in accordance with section 9001.

                    PART III--ACQUISITIONS GENERALLY

     SEC. 2161. TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS.

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

                  PART I--ARMED SERVICES ACQUISITIONS

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

       (a) Authority.--
       (1) In general.--Section 2313 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 2313. Examination of records of contractor

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

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

                 PART II--CIVILIAN AGENCY ACQUISITIONS

     SEC. 2251. AUTHORITY TO EXAMINE RECORDS OF CONTRACTORS.

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

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

       ``(a) Agency Authority.--(1) The head of an executive 
     agency, acting through an authorized representative, is 
     authorized to inspect the plant and audit the records of--
       ``(A) a contractor performing a cost-reimbursement, 
     incentive, time-and-materials, labor-hour, or price-
     redeterminable contract, or any combination of such 
     contracts, made by that executive agency under this title; 
     and
       ``(B) a subcontractor performing any cost-reimbursement, 
     incentive, time-and-materials, labor-hour, or price-
     redeterminable subcontract or any combination of such 
     subcontracts under a contract referred to in subparagraph 
     (A).
       ``(2) The head of an executive agency, acting through an 
     authorized representative, is authorized, for the purpose of 
     evaluating the accuracy, completeness, and currency of cost 
     or pricing data required to be submitted pursuant to section 
     304B with respect to a contract or subcontract, to examine 
     all records of the contractor or subcontractor related to--
       ``(A) the proposal for the contract or subcontract;
       ``(B) the discussions conducted on the proposal;
       ``(C) pricing of the contract or subcontract; or
       ``(D) performance of the contract or subcontract.
       ``(b) Comptroller General Authority.--(1) Except as 
     provided in paragraph (2), each contract awarded after using 
     procedures other than sealed bid procedures shall provide 
     that the Comptroller General and his representatives are 
     authorized to examine any records of the contractor, or any 
     of its subcontractors, that directly pertain to, and involve 
     transactions relating to, the contract or subcontract.
       ``(2) Paragraph (1) does not apply to a contract or 
     subcontract with a foreign contractor or foreign 
     subcontractor if the executive agency concerned determines, 
     with the concurrence of the Comptroller General or his 
     designee, that the application of that paragraph to the 
     contract or subcontract would not be in the public interest. 
     However, the concurrence of the Comptroller General or his 
     designee is not required--
       ``(A) where the contractor or subcontractor is a foreign 
     government or agency thereof or is precluded by the laws of 
     the country involved from making its records available for 
     examination; and
       ``(B) where the 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) Paragraph (1) may not be construed to require a 
     contractor or subcontractor to create or maintain any record 
     that the contractor or subcontractor does not maintain in the 
     ordinary course of business or pursuant to another provision 
     of law.
       ``(c) Limitation on Preaward Audits Relating to Indirect 
     Costs.--An executive agency may not perform a preaward audit 
     to evaluate proposed indirect costs under any contract, 
     subcontract, or modification to be entered into in accordance 
     with this title in any case in which the contracting officer 
     determines that the objectives of the audit can reasonably be 
     met by accepting the results of an audit conducted by any 
     other department or agency of the Federal Government within 
     one year preceding the date of the contracting officer's 
     determination.
       ``(d) Limitation.--The authority of an executive agency 
     under subsection (a), and the authority of the Comptroller 
     General under subsection (b), with respect to a contract or 
     subcontract shall expire three years after final payment 
     under such contract or subcontract.
       ``(e) Inapplicability to Certain Contracts.--This section 
     does not apply to the following contracts:
       ``(1) Contracts for utility services at rates not exceeding 
     those established to apply uniformly to the public, plus any 
     applicable reasonable connection charge.
       ``(f) Form of Original Record Storage.--Nothing in this 
     section shall be construed to preclude a contractor from 
     duplicating or storing original records in electronic form.
       ``(g) Use of Images of Original Records.--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) The contractor or subcontractor has established 
     procedures to ensure that the imaging process preserves the 
     integrity, reliability, and security of the original records.
       ``(2) The contractor or subcontractor maintains an 
     effective indexing system to permit timely and convenient 
     access to the imaged records.
       ``(3) The contractor or subcontractor retains the original 
     records for a minimum of one year after imaging to permit 
     periodic validation of the imaging systems.
       ``(h) Records Defined.--In this section, the term `records' 
     includes books, documents, accounting procedures and 
     practices, and other data, regardless of type and regardless 
     of whether such items are in written form, in the form of 
     computer data, or in any other form.''.
       (b) Repeal of Superseded Provision.--Section 304 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 254) is amended by striking out subsection (c).
                 Subtitle D--Cost Accounting Standards

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

       Section 26(f)(3) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 422(f)(3)) is amended in the first 
     sentence by striking out ``Not later than 180 days after the 
     date of enactment of this section, the Administrator'' and 
     inserting in lieu thereof ``The Administrator''.
 Subtitle E--Administration of Contract Provisions Relating to Price, 
                     Delivery, and Product Quality

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

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

     SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.

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

     SEC. 2501. CERTIFICATION OF CONTRACT CLAIMS.

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

     SEC. 2502. SHIPBUILDING CLAIMS.

       (a) Increase in Time Period During Which Adjustments to 
     Shipbuilding Claims May Be Made.--Section 2405 of title 10, 
     United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking out ``entered into after December 7, 
     1983,''; and
       (B) by striking out ``occurring more than 18 months before 
     the submission of the claim, request, or demand.'' and 
     inserting in lieu thereof the following: ``occurring--
       ``(1) in the case of a contract entered into after December 
     7, 1983, and before the date of the enactment of the Federal 
     Acquisition Improvement Act of 1994, more than 18 months 
     before the submission of the claim, request, or demand; and
       ``(2) in the case of a contract entered into on or after 
     the date of the enactment of the Federal Acquisition 
     Improvement Act of 1994, more than 6 years before the 
     submission of the claim, request, or demand.''.
       (b) Resubmission With Corrected Certification.--Subsection 
     (c) of such section is repealed.
         TITLE III--MAJOR SYSTEMS AND SERVICE SPECIFIC STATUTES
                   Subtitle A--Major Systems Statutes

     SEC. 3001. WEAPON DEVELOPMENT AND PROCUREMENT SCHEDULES.

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

     SEC. 3002. SELECTED ACQUISITION REPORT REQUIREMENT.

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

     SEC. 3003. UNIT COST REPORT REQUIREMENT.

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

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

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

     SEC. 3005. BASELINE DESCRIPTION.

       (a) In General.--Section 2435 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 2435. Baseline description

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

``2435. Baseline description.''.

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

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

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

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

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

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

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

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

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

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

     SEC. 3021. DEFINITION OF CONTRACTOR.

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

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

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

     SEC. 3023. USE OF MILITARY INSTALLATIONS BY CONTRACTORS.

       (a) Authority.--Chapter 931 of title 10, United States 
     Code, as amended by section 3022, is further amended by 
     adding at the end the following new section 9513:

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

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

``9513. Use of military installations by Civil Reserve Air Fleet 
              contractors.''.
                       Subtitle D--Miscellaneous

     SEC. 3051. REGULATIONS ON PROCUREMENT, PRODUCTION, 
                   WAREHOUSING, AND SUPPLY DISTRIBUTION FUNCTIONS.

       (a) In General.--Section 2202 of title 10, United States 
     Code, is amended to read as follows:

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

       ``The Secretary of Defense shall prescribe regulations 
     governing the performance within the Department of Defense of 
     the procurement, production, warehousing, and supply 
     distribution functions, and related functions, of the 
     Department of Defense.''.
       (b) Clerical Amendment.--The item relating to section 2202 
     in the table of sections at the beginning of chapter 131 of 
     such title is amended to read as follows:

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

     SEC. 3052. REPEAL OF REQUIREMENTS REGARDING PRODUCT 
                   EVALUATION ACTIVITIES.

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

     SEC. 3053. CODIFICATION AND REVISION OF LIMITATION ON LEASE 
                   OF VESSELS, AIRCRAFT, AND VEHICLES.

       (a) Limitation.--(1) Chapter 141 of title 10, United States 
     Code, is amended by inserting after section 2401 the 
     following new section:

     ``Sec. 2401a. Lease of vessels, aircraft, and vehicles

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

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

     SEC. 3054. REPEAL OF APPLICATION OF PUBLIC CONTRACTS ACT TO 
                   CERTAIN NAVAL VESSEL CONTRACTS.

       (a) Repeal.--Section 7299 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 633 of such title is amended by striking 
     out the item relating to section 7299.
  TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL 
                    BUSINESS, AND MISCELLANEOUS LAWS
              Subtitle A--Simplified Acquisition Threshold

                   PART I--ESTABLISHMENT OF THRESHOLD

     SEC. 4001. ESTABLISHMENT OF SIMPLIFIED ACQUISITION THRESHOLD.

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

     ``SEC. 4A. SIMPLIFIED ACQUISITION THRESHOLD.

       ``(a) In General.--The simplified acquisition threshold for 
     purposes of Federal acquisitions is (except as provided in 
     subsection (b)) the amount of $25,000, as adjusted pursuant 
     to subsection (c).
       ``(b) Agencies With FACNET Capability.--In the case of an 
     executive agency, or a procuring activity of an executive 
     agency, for which there is in effect a certification under 
     2302b(c) of title 10, United States Code, or section 302B(c) 
     of the Federal Property and Administrative Services Act of 
     1949 with respect to implementation of a FACNET capability, 
     the simplified acquisition threshold is the amount of 
     $100,000, as adjusted pursuant to subsection (c).
       ``(c) Periodic Adjustment for Inflation.--The dollar amount 
     in effect under subsection (a) shall be adjusted on October 1 
     of each year divisible by 5 to the equivalent amount in 
     constant fiscal year 1990 dollars (rounded to the nearest 
     $1,000). The dollar amount in effect under subsection (b) 
     shall be adjusted on October 1 of each year divisible by 5 to 
     the equivalent amount in constant fiscal year 1993 dollars 
     (rounded to the nearest $1,000).
       ``(d) Special Rule for Contingency Operations.--In the case 
     of a contract to be awarded and performed, or a purchase to 
     be made, outside the United States in support of a 
     contingency operation (as defined in section 101(a)(13) of 
     title 10, United States Code), the amounts in effect under 
     subsections (a) and (b) shall be two times the amounts 
     otherwise applicable.''.
       (b) Conforming Amendment to Definition.--Section 4 of such 
     Act is amended by striking out paragraph (11).

     SEC. 4002. FEDERAL ACQUISITION COMPUTER NETWORK ARCHITECTURE.

       (a) Federal Acquisition Computer Network Architecture.--The 
     Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
     seq.), as amended by section 1092, is further amended by 
     adding at the end the following new section:

     ``SEC. 30. FEDERAL ACQUISITION COMPUTER NETWORK (FACNET) 
                   ARCHITECTURE.

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

     SEC. 4003. IMPLEMENTATION IN ARMED SERVICES.

       (a) Establishment in Title 10.--Chapter 137 of title 10, 
     United States Code, is amended by inserting after section 
     2302 the following new sections:

     ``Sec. 2302a. Simplified acquisition threshold

       ``(a) Simplified Acquisition Threshold.--For purposes of 
     acquisitions by agencies named in section 2303 of this title, 
     the simplified acquisition threshold is as specified in 
     section 4A of the Office of Federal Procurement Policy Act.

     ``Sec. 2302b. Implementation of FACNET capability

       ``(a) Implementation of FACNET Capability.--(1) The head of 
     each agency named in section 2303 of this title shall 
     implement the Federal acquisition computer network (`FACNET') 
     capability required by section 30 of the Office of Federal 
     Procurement Policy Act. In the case of the Department of 
     Defense, the implementation shall be by the Secretary of 
     Defense for the Department of Defense as a whole. For 
     purposes of this section, the term `head of an agency' does 
     not include the Secretaries of the military departments.
       ``(2) In implementing the FACNET capability pursuant to 
     paragraph (1), the head of an agency shall consult with the 
     Administrator for Federal Procurement Policy.
       ``(b) Designation of Agency Official.--(1) The Secretary of 
     Defense shall designate the Under Secretary of Defense for 
     Acquisition and Technology to have responsibility for 
     implementation of FACNET capability throughout the Department 
     of Defense.
       ``(2) The head of each agency named in paragraph (5) or (6) 
     of section 2303 of this title shall designate a program 
     manager to have responsibility for implementation of FACNET 
     capability for that agency and otherwise to implement this 
     section. Such program manager shall report directly to the 
     senior procurement executive designated for the agency under 
     section 16(3) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 414(3)).
       ``(c) Certification of FACNET Capability.--(1) When the 
     senior procurement executive of an agency or, in the case of 
     the Department of Defense, the Under Secretary of Defense for 
     Acquisition and Technology, determines that a procuring 
     activity of the agency has implemented an interim FACNET 
     capability (as defined in subsection (e)), the executive or 
     the Under Secretary shall certify to the Administrator for 
     Federal Procurement Policy that such activity has implemented 
     an interim FACNET capability.
       ``(2) When the head of an agency, with the concurrence of 
     the Administrator for Federal Procurement Policy, determines 
     that the agency has implemented a full FACNET capability (as 
     defined in subsection (f)), the head of the agency shall 
     certify to Congress that the agency has implemented a full 
     FACNET capability.
       ``(3) The head of each agency shall provide for 
     implementation of both interim FACNET capability and full 
     FACNET capability, with priority on providing convenient and 
     universal user access as required by section 30(b)(3)(C) of 
     the Office of Federal Procurement Policy Act, in that agency 
     as soon as practicable after the date of the enactment of the 
     Federal Acquisition Improvement Act of 1994.
       ``(d) Higher Simplified Acquisition Threshold When FACNET 
     Capability Certified.--A certification to the Administrator 
     for Federal Procurement Policy or Congress under subsection 
     (c) shall be considered to be a certification for purposes of 
     the higher simplified acquisition threshold under section 
     4A(b) of the Office of Federal Procurement Policy Act, except 
     that a certification under paragraph (1) of subsection (c) 
     shall not constitute such a certification in the case of 
     solicitations issued after the end of the five-year period 
     beginning on the date of the enactment of the Federal 
     Acquisition Improvement Act of 1994.
       ``(e) Implementation of Interim FACNET Capability.--A 
     procuring activity shall be considered to have implemented an 
     interim FACNET capability if--
       ``(1) with respect to each procurement expected to be in an 
     amount greater than the micro-purchase threshold and less 
     than the simplified acquisition threshold, the procuring 
     activity has implemented the FACNET functions described in 
     paragraphs (1)(A) and (2)(A) of section 30(b) of the Office 
     of Federal Procurement Policy Act; and
       ``(2) with respect to each procurement expected to be in an 
     amount greater than the micro-purchase threshold and less 
     than the simplified acquisition threshold, the procuring 
     activity issues notices of solicitations through a system 
     with those functions for all contracting opportunities other 
     than in cases covered by section 18(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 416(c)).
       ``(f) Implementation of Full FACNET Capability.--(1) An 
     agency shall be considered to have implemented a full FACNET 
     capability if (except in the case of procuring activities (or 
     portions thereof) of the agency for which the head of the 
     agency determines that implementation is not cost effective 
     or practicable) the agency has implemented all of the FACNET 
     functions described in section 30(b) of the Office of Federal 
     Procurement Policy Act.
       ``(2) For purposes of paragraph (1), an agency may not be 
     considered to have implemented a full FACNET capability if--
       ``(A) the head of the agency has determined that 
     implementation of FACNET capability is not cost effective or 
     practicable in the case of certain procuring activities (or 
     portions thereof) of the agency; and
       ``(B) the percentage of the procurement actions in amounts 
     greater than the micro-purchase threshold executed by the 
     procuring activities (or portions thereof) referred to in 
     subparagraph (A) for the preceding fiscal year is greater 
     than 25 percent of the total number of procurement actions in 
     amounts greater than the micro-purchase threshold executed by 
     the agency for that year.
       ``(g) Procuring Activities Originally Excluded in 
     Certification.--(1) If the head of an agency, in certifying 
     under subsection (c) that the agency has implemented a full 
     FACNET capability, determines that such implementation is not 
     cost effective or practicable in the case of any procuring 
     activity (or portion thereof) of that agency, then that 
     certification shall not apply under section 4A(b) of the 
     Office of Federal Procurement Policy Act to any procurement 
     action by that procuring activity (or portion thereof).
       ``(2) If the head of an agency determines that an interim 
     or a full FACNET capability has subsequently been implemented 
     for that procuring activity (or portion thereof), the head of 
     the agency shall make a certification to the Administrator 
     for Federal Procurement Policy in the same manner as a 
     certification under paragraph (1) or (2) of subsection (c), 
     as applicable, and such certification shall have the same 
     effect with respect to that procuring activity (or portion 
     thereof) as if made under such paragraph of subsection 
     (c).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 137 of such title is amended by 
     inserting after the item relating to section 2302 the 
     following new items:

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

     SEC. 4004. IMPLEMENTATION IN CIVILIAN AGENCIES.

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

     ``SEC. 302A. SIMPLIFIED ACQUISITION THRESHOLD.

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

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

       ``(a) Implementation of FACNET Capability.--(1) The head of 
     each executive agency shall implement the Federal acquisition 
     computer network (`FACNET') capability required by section 30 
     of the Office of Federal Procurement Policy Act.
       ``(2) In implementing the FACNET capability pursuant to 
     paragraph (1), the head of an executive agency shall consult 
     with the Administrator for Federal Procurement Policy.
       ``(b) Designation of Agency Official.--The head of each 
     executive agency shall designate a program manager to have 
     responsibility for implementation of FACNET capability for 
     that agency and otherwise to implement this section. Such 
     program manager shall report directly to the senior 
     procurement executive designated for the agency under section 
     16(3) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 414(3)).
       ``(c) Certification of FACNET Capability.--(1) When the 
     senior procurement executive of an executive agency 
     determines that a procuring activity of the agency has 
     implemented an interim FACNET capability (as defined in 
     subsection (e)), the executive shall certify to the 
     Administrator for Federal Procurement Policy that such 
     activity has implemented an interim FACNET capability.
       ``(2) When the head of an executive agency, with the 
     concurrence of the Administrator for Federal Procurement 
     Policy, determines that the executive agency has implemented 
     a full FACNET capability (as defined in subsection (f)), the 
     head of the executive agency shall certify to Congress that 
     the agency has implemented a full FACNET capability.
       ``(3) The head of each executive agency shall provide for 
     implementation of both interim FACNET capability and full 
     FACNET capability, with priority on providing convenient and 
     universal user access as required by section 30(b)(3)(C) of 
     the Office of Federal Procurement Policy Act, in that 
     executive agency as soon as practicable after the date of the 
     enactment of the Federal Acquisition Improvement Act of 1994.
       ``(d) Higher Simplified Acquisition Threshold When FACNET 
     Capability Certified.--A certification to the Administrator 
     for Federal Procurement Policy or Congress under subsection 
     (c) shall be considered to be a certification for purposes of 
     the higher simplified acquisition threshold under section 
     4A(b) of the Office of Federal Procurement Policy Act, except 
     that a certification under paragraph (1) of subsection (c) 
     shall not constitute such a certification in the case of 
     solicitations issued after the end of the five-year period 
     beginning on the date of the enactment of the Federal 
     Acquisition Improvement Act of 1994.
       ``(e) Implementation of Interim FACNET Capability.--A 
     procuring activity shall be considered to have implemented an 
     interim FACNET capability if--
       ``(1) with respect to each procurement expected to be in an 
     amount greater than the micro-purchase threshold and less 
     than the simplified acquisition threshold, the procuring 
     activity has implemented the FACNET functions described in 
     paragraphs (1)(A) and (2)(A) of section 30(b) of the Office 
     of Federal Procurement Policy Act; and
       ``(2) with respect to each procurement expected to be in an 
     amount greater than the micro-purchase threshold and less 
     than the simplified acquisition threshold, the procuring 
     activity issues notices of solicitations through a system 
     with those functions for all contracting opportunities other 
     than in cases covered by section 18(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 416(c)).
       ``(f) Implementation of Full FACNET Capability.--(1) An 
     executive agency shall be considered to have implemented a 
     full FACNET capability if (except in the case of procuring 
     activities (or portions thereof) of the executive agency for 
     which the head of the agency determines that implementation 
     is not cost effective or practicable) the executive agency 
     has implemented all of the FACNET functions described in 
     section 30(b) of the Office of Federal Procurement Policy 
     Act.
       ``(2) For purposes of paragraph (1), an executive agency 
     may not be considered to have implemented a full FACNET 
     capability if--
       ``(A) the head of the executive agency has determined that 
     implementation of FACNET capability is not cost effective or 
     practicable in the case of certain procuring activities (or 
     portions thereof) of the executive agency; and
       ``(B) the percentage of the procurement actions in amounts 
     greater than the micro-purchase threshold executed by the 
     procuring activities (or portions thereof) referred to in 
     subparagraph (A) for the preceding fiscal year is greater 
     than 25 percent of the total number of procurement actions in 
     amounts greater than the micro-purchase threshold executed by 
     the executive agency for that year.
       ``(g) Procuring Activities Originally Excluded in 
     Certification.--(1) If the head of an executive agency, in 
     certifying under subsection (c) that the agency has 
     implemented a full FACNET capability, determines that such 
     implementation is not cost effective or practicable in the 
     case of any procuring activity (or portion thereof) of that 
     executive agency, then that certification shall not apply 
     under section 4A(b) of the Office of Federal Procurement 
     Policy Act to any procurement action by that procuring 
     activity (or portion thereof).
       ``(2) If the head of an executive agency determines that an 
     interim or a full FACNET capability has subsequently been 
     implemented for that procuring activity (or portion thereof), 
     the executive agency shall make a certification to the 
     Administrator for Federal Procurement Policy in the same 
     manner as a certification under paragraph (1) or (2) of 
     subsection (c), as applicable, and such certification shall 
     have the same effect with respect to that procuring activity 
     (or portion thereof) as if made under such paragraph of 
     subsection (c).''.

                 PART II--SIMPLIFICATION OF PROCEDURES

     SEC. 4011. PROCEDURES FOR PURCHASES BELOW MICRO-PURCHASE 
                   THRESHOLD.

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

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

       ``(a) Requirements.--(1) The head of each executive agency 
     shall ensure that procuring activities of that agency, in 
     awarding a contract with a price exceeding the micro-purchase 
     threshold, comply with the requirements of section 8(a) of 
     the Small Business Act (15 U.S.C. 637(a)) and section 2323 of 
     title 10, United States Code, or section 315 of the Federal 
     Property and Administrative Services Act of 1949, as 
     applicable to that agency.
       ``(2) The authority under part 13.106(a)(1) of the Federal 
     Acquisition Regulation (48 C.F.R. 13.106(a)(1)), as in effect 
     on November 18, 1993, to make purchases without securing 
     competitive quotations does not apply to any purchases with a 
     price exceeding the micro-purchase threshold.
       ``(b) Exclusion for Micro-Purchases.--A purchase by an 
     executive agency with an anticipated value of the micro-
     purchase threshold or less is not subject to the Act of March 
     3, 1933, commonly referred to as the `Buy American Act' (41 
     U.S.C. 10a-10c).
       ``(c) Applicability of Certain Provisions.--For purposes of 
     section 27, only subsections (a) and (b) shall apply with 
     respect to purchases below the micro-purchase threshold. In 
     applying such subsection (a), a contractor that enters into a 
     contract under the micro-purchase threshold shall be 
     considered to be a competing contractor. In applying such 
     subsection (b), a civil officer or employee, and any member 
     of the Armed Forces, who has authority to enter into 
     contracts but whose contracting authority is limited to the 
     amount of the micro-purchase threshold or less shall be 
     considered to be a procurement official.
       ``(d) Implementation Through FAR.--This section shall be 
     implemented through the Federal Acquisition Regulation.
       ``(e) Micro-Purchase Threshold Defined.--For purposes of 
     this section, the micro-purchase threshold is the amount of 
     $2,500, adjusted on October 1 of each year divisible by 5 to 
     the equivalent amount in constant fiscal year 1993 dollars 
     (rounded to the nearest $100).''.

     SEC. 4012. PROCUREMENT NOTICE.

       (a) Continuation of Existing Notice Thresholds.--Subsection 
     (a) of section 18 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 416) is amended as follows:
       (1) Paragraph (1) is amended--
       (A) by striking out ``the small purchase threshold'' each 
     place it appears and inserting in lieu thereof ``the 
     simplified acquisition threshold'';
       (B) by striking out ``(c)--'' in the matter preceding 
     subparagraph (A) and inserting in lieu thereof ``(c):'';
       (C) by striking out ``an executive'' at the beginning of 
     subparagraphs (A) and (C) and inserting in lieu thereof ``An 
     executive'';
       (D) by striking out the semicolon at the end of 
     subparagraph (A) and inserting in lieu thereof a period; and
       (E) by amending subparagraph (B) to read as follows:
       ``(B) An executive agency intending to solicit bids or 
     proposals for a contract for property or services for a price 
     expected to exceed $10,000 but not to exceed the simplified 
     acquisition threshold shall post a notice of solicitation 
     described in subsection (b). The notice shall be posted at 
     the contracting office issuing the solicitation or shall be 
     made available through an electronic system with a FACNET 
     capability that at least meets the requirements of paragraphs 
     (1)(A) and (2)(A) of section 30(b). The notice shall be 
     posted for a period of not less than 10 days, except that in 
     the case of a posting made through an electronic system with 
     such a FACNET capability, the posting may be for a period of 
     less than 10 days as prescribed in the Federal Acquisition 
     Regulation.''.
       (2) Paragraph (3)(B) is amended by inserting after ``(B)'' 
     the following: ``in the case of a contract or order for an 
     amount expected to exceed the simplified acquisition 
     threshold,''.
       (b) Opportunity for All Responsible Potential Offerors.--
     Such subsection is further amended by adding at the end the 
     following:
       ``(4) An executive agency intending to solicit offers for a 
     contract for which a notice of solicitation is required to be 
     posted under paragraph (1)(B) shall ensure that all potential 
     offerors are permitted to respond to the solicitation for the 
     contract within the period of time specified in the 
     solicitation for the submission of offers.''.
       (c) Establishment of Deadline for Submission of Offers.--
     Such subsection is further amended by adding after paragraph 
     (4), as added by subsection (b), the following new paragraph:
       ``(5) An executive agency shall establish a deadline for 
     the submission of all bids or proposals in response to a 
     notice of solicitation with respect to which no such deadline 
     is provided by statute.''.
       (d) Exceptions.--Subsection (c) of such section is amended 
     by adding at the end the following new paragraph:
       ``(4)(A) The requirements of subsection (a)(1) shall not 
     apply in the case of an acquisition for which notice is 
     accomplished through the use of FACNET, as described in 
     section 30 and certified under section 2302a of title 10, 
     United States Code, or section 302A of the Federal Property 
     and Administrative Services Act of 1949.
       ``(B) The Federal Acquisition Regulation shall provide for 
     minimum periods of time for submission of offers for 
     acquisitions described in subparagraph (A). Such periods 
     shall provide offerors a reasonable opportunity to respond.
       ``(C) A notice of solicitation of bids or proposals for an 
     acquisition described in subparagraph (A) shall include the 
     matter described in subsection (b).''.

     SEC. 4013. GAO TEST AND REPORT ON PERFORMANCE OF SIMPLIFIED 
                   ACQUISITION THRESHOLD.

       (a) Performance Test.--The Comptroller General of the 
     United States shall collect data and assess the effects of 
     the simplified acquisition threshold, as established in 
     section 4A of the Office of Federal Procurement Policy Act, 
     on the participation of small business concerns (including 
     small business concerns owned and controlled by socially and 
     economically disadvantaged individuals) in procurement awards 
     of less than $100,000 and the benefits and detriments, if 
     any, to the procuring activities of the various Executive 
     agencies.
       (b) Data To Be Collected.--Data collected under subsection 
     (a) shall include data regarding whether the establishment of 
     the simplified acquisition threshold has improved the 
     acquisition process in terms of reduced paperwork, financial 
     or other savings to the Federal Government, and any increase 
     in the number of contractors participating in the contracting 
     process.
       (c) Period.--Data shall be collected for purposes of 
     subsection (a) during the period beginning with the first 
     full fiscal year quarter after the effective date of the 
     amendments made by section 3001 and ending on September 30, 
     1997.
       (d) Report.--By March 1, 1998, the Comptroller General 
     shall submit to Congress a report on the effects of the 
     establishment of the simplified acquisition threshold by the 
     amendments made by section 3001.

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

                          Subpart A--Generally

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

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

                 Subpart B--Armed Services Acquisitions

     SEC. 4031. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

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

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

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

                Subpart C--Civilian Agency Acquisitions

     SEC. 4041. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

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

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

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

                   Subpart D--Acquisitions Generally

     SEC. 4051. CONFORMANCE OF CERTAIN PROCUREMENT INTEGRITY 
                   REQUIREMENTS.

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

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

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

                     PART IV--CONFORMING AMENDMENTS

     SEC. 4071. ARMED SERVICES ACQUISITIONS.

       (a) Simplified Acquisition Procedures.--Section 2304(g) of 
     title 10, United States Code, is amended--
       (1) in paragraph (1), by striking out ``small purchases of 
     property and services'' and inserting in lieu thereof 
     ``purchases of property and services for amounts not in 
     excess of the simplified acquisition threshold'';
       (2) by striking out paragraph (2);
       (3) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively;
       (4) in paragraph (2), as so redesignated--
       (A) by striking out ``small purchase threshold'' and 
     inserting in lieu thereof ``simplified acquisition 
     threshold''; and
       (B) by striking out ``small purchase procedures'' and 
     inserting in lieu thereof ``simplified procedures''; and
       (5) in paragraph (3), as so redesignated, by striking out 
     ``small purchase procedures'' and inserting in lieu thereof 
     ``simplified procedures''.
       (b) Solicitation Content Requirement.--Section 2305(a)(2) 
     of such title is amended by striking out ``small purchases)'' 
     in the matter preceding subparagraph (A) and inserting in 
     lieu thereof ``a purchase for an amount not in excess of the 
     simplified acquisition threshold)''.
       (c) Cost Type Contracts.--Section 2306(e)(2)(A) of such 
     title is amended by striking out ``small purchase threshold'' 
     and inserting in lieu thereof ``simplified acquisition 
     threshold''.
       (d) Cross Reference Amendment.--Section 9005 of Public Law 
     102-396 (10 U.S.C. 2441 note) is amended in the first 
     sentence by striking out ``small purchases covered by section 
     2304(g)'' and inserting in lieu thereof ``purchases for 
     amounts not in excess of the simplified acquisition threshold 
     covered by section 2304(g)''.

     SEC. 4072. CIVILIAN AGENCY ACQUISITIONS.

       (a) Simplified Acquisition Procedures.--Section 303(g) of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 253(g)) is amended--
       (1) in paragraph (1)--
       (A) by striking out ``small purchases of property and 
     services'' and inserting in lieu thereof ``purchases of 
     property and services for amounts not in excess of the 
     simplified acquisition threshold'', and
       (B) by striking out ``regulations modified, in accordance 
     with section 2752 of the Competition in Contracting Act of 
     1984,'' and inserting in lieu thereof ``Federal Acquisition 
     Regulation'';
       (2) by striking out paragraph (2);
       (3) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively;
       (4) in paragraph (2), as so redesignated--
       (A) by striking out ``small purchase threshold'' and 
     inserting in lieu thereof ``simplified acquisition 
     threshold''; and
       (B) by striking out ``small purchase procedures'' and 
     inserting in lieu thereof ``simplified procedures'';
       (5) in paragraph (3), as so redesignated, by striking out 
     ``small purchase procedures'' and inserting in lieu thereof 
     ``the simplified procedures''; and
       (6) by striking out paragraph (5).
       (b) Solicitation Content Requirement.--Section 303A(b) of 
     such Act (41 U.S.C. 253a(b)) is amended by striking out 
     ``small purchases)'' in the matter preceding paragraph (1) 
     and inserting in lieu thereof ``a purchase for an amount not 
     in excess of the simplified acquisition threshold)''.
       (c) Cost Type Contracts.--Section 304(b) of such Act (41 
     U.S.C. 254(b)) is amended in the third sentence by striking 
     out ``either $25,000'' and inserting in lieu thereof ``either 
     the simplified acquisition threshold''.

     SEC. 4073. OFFICE OF FEDERAL PROCUREMENT POLICY ACT.

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

                    PART V--REVISION OF REGULATIONS

     SEC. 4081. REVISION REQUIRED.

       (a) Federal Acquisition Regulation.--(1) Not later than one 
     year after the date of the enactment of this Act, the Federal 
     Acquisition Regulatory Council established by section 25(a) 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     421(a)) shall--
       (A) review the Federal Acquisition Regulation to identify 
     regulations that are applicable to acquisitions in excess of 
     a specified amount that is less than $100,000 (other than 
     such an amount that is specified by law); and
       (B) amend the regulations so identified to provide that 
     such regulations do not apply to acquisitions that are not in 
     excess of the simplified acquisition threshold.
       (2) Paragraph (1)(B) does not apply in the case of a 
     regulation for which such an amendment would not be in the 
     national interest, as determined by the Council.
       (b) Supplemental Regulations.--Not later than 90 days after 
     the date on which the review required by subsection (a)(1)(A) 
     is completed, the head of each executive agency that has 
     issued regulations, policies, or procedures referred to in 
     section 25(c)(2) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 421(c)(2)) shall--
       (1) identify any such regulation, policy, or procedure that 
     is applicable to acquisitions in excess of a specified amount 
     that is less than $100,000; and
       (2) pursuant to section 22 of such Act (41 U.S.C. 418b), 
     publish amendments to the regulations so identified to 
     provide that each such regulation, policy, or procedure does 
     not apply to acquisitions that are not in excess of the 
     simplified acquisition threshold.
       (c) Relationship to Other Authority.--None of the 
     amendments to regulations made pursuant to subsections (a) 
     and (b) apply to or in any way diminish the authority of the 
     civil rights enforcement programs enforced by the Department 
     of Labor.
       (d) Definitions.--In this section:
       (1) The term ``simplified acquisition threshold'' has the 
     meaning given such term in section 4A of the Office of 
     Federal Procurement Policy Act, as added by section 4001.
       (2) The term ``executive agency'' has the meaning given 
     such term in section 3(a) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 472(b)).
           Subtitle B--Socioeconomic and Small Business Laws

     SEC. 4101. SMALL BUSINESS PROVISIONS.

       Section 6(d) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 405(d)) is amended--
       (1) by striking out ``and'' at the end of paragraph (7);
       (2) by redesignating paragraph (8) as paragraph (10); and
       (3) by inserting after paragraph (7) the following new 
     paragraphs:
       ``(8) developing policies, in consultation with the 
     Administrator of the Small Business Administration, that 
     ensure that small businesses and small businesses owned and 
     controlled by socially and economically disadvantaged persons 
     are provided with the maximum practicable opportunities to 
     participate in procurements that are conducted for amounts 
     below the simplified acquisition threshold;
       ``(9) developing policies that will promote achievement of 
     goals for participation by small businesses and small 
     businesses owned and controlled by socially and economically 
     disadvantaged individuals;''.

     SEC. 4102. PAYMENT PROTECTIONS FOR SUBCONTRACTORS AND 
                   SUPPLIERS.

       (a) Regulations.--
       (1) In general.--The Administrator for Federal Procurement 
     Policy shall prescribe in regulations the requirements 
     described in paragraph (2).
       (2) Procedures relating to compliance with payment terms.--
     (A) Under procedures established in the regulations, upon the 
     assertion by a subcontractor or supplier of a contractor 
     performing a Government contract that the subcontractor or 
     supplier has not been paid by the prime contractor in 
     accordance with the payment terms of the subcontract, 
     purchase order, or other agreement with the prime contractor, 
     the contracting officer may determine the following:
       (i) With respect to a construction contract, whether the 
     contractor has made progress payments to the subcontractor or 
     supplier in compliance with chapter 39 of title 31, United 
     States Code.
       (ii) With respect to a contract other than a construction 
     contract, whether the contractor has made progress or other 
     payments to the subcontractor or supplier in compliance with 
     the terms of the subcontract, purchase order, or other 
     agreement with the prime contractor.
       (iii) With respect to either a construction contract or a 
     contract other than a construction contract, whether the 
     contractor has made final payment to the subcontractor or 
     supplier in compliance with the terms of the subcontract, 
     purchase order, or other agreement with the prime contractor.
       (iv) With respect to either a construction contract or a 
     contract other than a construction contract, whether any 
     certification of payment of the subcontractor or supplier 
     accompanying the contractor's payment request to the 
     Government is accurate.
       (B) If the contracting officer determines that the prime 
     contractor is not in compliance with any matter referred to 
     in clause (i), (ii), or (iii) of subparagraph (A), the 
     contracting officer may, under procedures established in the 
     regulations--
       (i) encourage the prime contractor to make timely payment 
     to the subcontractor or supplier; or
       (ii) reduce or suspend progress payments with respect to 
     amounts due to the prime contractor.
       (C) If the contracting officer determines that a 
     certification referred to in clause (iv) of subparagraph (A) 
     is inaccurate in any material respect, the contracting 
     officer shall, under procedures established in the 
     regulations, initiate appropriate administrative or other 
     remedial action.
       (D) This paragraph shall apply with respect to any 
     Government contract, other than a Department of Defense 
     contract, that is in effect on the date of promulgation of 
     the regulations under this subsection or that is awarded 
     after such date.
       (b) Inapplicability to Certain Contracts.--The regulations 
     prescribed under this section shall not apply to the 
     following contracts:
       (1) A contract that is for an amount not in excess of the 
     simplified acquisition threshold (within the meaning of 
     section 4A of the Office of Federal Procurement Policy Act).
       (2) A contract for the acquisition of commercial items (as 
     that term is defined in section 4(12) of the Office of 
     Federal Procurement Policy Act).
       (c) Amendments to Armed Services Provision.--Section 806 of 
     the National Defense Authorization Act for Fiscal Years 1992 
     and 1993 (Public Law 102-190; 10 U.S.C. 2301 note) is amended 
     by striking out subsection (c) and inserting in lieu thereof 
     the following:
       ``(c) Inapplicability to Certain Contracts.--Regulations 
     prescribed under this section shall not apply to the 
     following contracts:
       ``(1) A contract that is for an amount not in excess of the 
     simplified acquisition threshold (within the meaning of 
     section 4A of the Office of Federal Procurement Policy Act).
       ``(2) A contract for the acquisition of commercial items 
     (as that term is defined in section 2281 of title 10, United 
     States Code).''.

     SEC. 4103. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF 
                   COMPREHENSIVE SMALL BUSINESS SUBCONTRACTING 
                   PLANS.

       Section 834(e) of the National Defense Authorization Act 
     for Fiscal Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 
     637 note) is amended by striking out ``September 30, 1994.'' 
     in the second sentence and inserting in lieu thereof 
     ``September 30, 1997.''.

     SEC. 4104. SMALL BUSINESS PROCUREMENT ADVISORY COUNCIL.

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

     SEC. 4105. MAXIMUM PRACTICABLE OPPORTUNITIES FOR APPRENTICES 
                   ON FEDERAL CONSTRUCTION PROJECTS.

       (a) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) contractors performing Federal construction contracts 
     should, to the maximum extent practicable, give preference in 
     the selection of subcontractors to subcontractors 
     participating in apprenticeship programs registered with the 
     Department of Labor or with a State apprenticeship agency 
     recognized by such Department; and
       (2) contractors and subcontractors performing Federal 
     construction contracts should provide maximum practicable 
     opportunities for employment of apprentices who are 
     participating in or who have completed such apprenticeship 
     programs.
       (b) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Congress a report on the extent to which contractors 
     and subcontractors performing Federal construction contracts 
     have increased subcontractor participation in registered 
     apprenticeship programs.
               Subtitle C--Miscellaneous Acquisition Laws

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

       (a) Armed Services Acquisitions.--Section 2304 of title 10, 
     United States Code, as amended by section 1005, is further 
     amended--
       (1) in subsection (c)(5), by inserting ``subject to 
     subsection (k),'' after ``(5)''; and
       (2) by adding at the end the following new subsection:
       ``(k)(1) It is the policy of Congress that no legislation 
     should be enacted that requires a procurement by an agency to 
     be made from a specified non-Federal Government source.
       ``(2) A provision of law may not be construed as requiring 
     a procurement by an agency to be made from a specified non-
     Federal Government source unless that provision of law--
       ``(A) specifically refers to this subsection;
       ``(B) specifically identifies the particular non-Federal 
     Government source from which the procurement is to made; and
       ``(C) specifically states that the procurement from that 
     source is required by such provision of law in contravention 
     of the policy set forth in paragraph (1).''.
       (b) Civilian Agency Acquisitions.--Section 303 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253) is amended--
       (1) in subsection (c)(5), by inserting ``subject to 
     subsection (h),'' after ``(5)''; and
       (2) by adding at the end the following new subsection:
       ``(h)(1) It is the policy of Congress that no legislation 
     should be enacted that requires a procurement by an executive 
     agency to be made from a specified non-Federal Government 
     source.
       ``(2) A provision of law may not be construed as requiring 
     a procurement by an executive agency to be made from a 
     specified non-Federal Government source unless that provision 
     of law--
       ``(A) specifically refers to this subsection;
       ``(B) specifically identifies the particular non-Federal 
     Government source involved; and
       ``(C) specifically states that the procurement from that 
     source is required by such provision of law in contravention 
     of the policy set forth in paragraph (1).''.

     SEC. 4152. REPEAL OF OBSOLETE PROVISION.

       Section 308 of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 258) is repealed.
                     TITLE V--STANDARDS OF CONDUCT

     SEC. 5001. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL 
                   PERSONNEL.

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

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

       ``(a) Limitation on Use of Contract Advisory and Assistance 
     Services.--(1) An executive agency may not provide for an 
     evaluation or analysis of any aspect of a proposal submitted 
     for an acquisition by that executive agency to be conducted 
     by a person who is not an employee of an executive agency or 
     a member of the Armed Forces unless the executive agency 
     determines that employees or members with adequate training 
     and capability to perform the evaluation or analysis are not 
     readily available within the agency or another Federal 
     agency, as determined in accordance with standards and 
     procedures prescribed in the Federal Acquisition Regulation.
       ``(2) In the administration of this subsection, the 
     executive agency shall determine in accordance with the 
     standards and procedures set forth in the Federal Acquisition 
     Regulation whether--
       ``(A) a sufficient number of employees within the executive 
     agency or another Federal agency are readily available to 
     perform a particular evaluation or analysis for the executive 
     agency making the determination; and
       ``(B) the readily available employees have the training and 
     capabilities necessary to perform the evaluation or analysis.
       ``(b) Definition.--For purposes of this section, the term 
     `employee' has the meaning given such term in section 2105 of 
     title 5, United States Code.''.
       (b) Requirement for Guidance and Regulations.--
       (1) In general.--The Federal Acquisition Regulatory Council 
     established by section 25(a) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 421(a)) shall--
       (A) review part 37 of title 48 of the Code of Federal 
     Regulations as it relates to the use of advisory and 
     assistance services; and
       (B) provide guidance and promulgate regulations regarding--
       (i) what actions Federal agencies are required to take to 
     determine whether expertise is readily available within the 
     Federal Government before contracting for advisory and 
     technical services to conduct acquisitions; and
       (ii) the manner in which Federal employees with expertise 
     may be shared with agencies needing expertise for such 
     acquisitions.
       (2) Definition.--In paragraph (1), the term ``employee'' 
     has the meaning given such term in section 2105 of title 5, 
     United States Code.

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

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

     SEC. 5003. INTERESTS OF MEMBERS OF CONGRESS.

       Section 3741 of the Revised Statutes (41 U.S.C. 22) is 
     amended to read as follows:
       ``Sec. 3741. No member of Congress shall be admitted to any 
     share or part of any contract or agreement made, entered 
     into, or accepted by or on behalf of the United States, or to 
     any benefit to arise thereupon.''.

     SEC. 5004. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED 
                   FOR ACQUISITION REGULATIONS.

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

     SEC. 5005. REPEAL OF SUPERSEDED AND OBSOLETE LAWS.

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

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

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

     SEC. 6002. POLICY ON PURCHASE OF FOREIGN GOODS.

       (a) In General.--Section 2533 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 2533. Policy on the purchase of foreign goods

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

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

     SEC. 6003. CONSOLIDATION OF MISCELLANEOUS PROCUREMENT 
                   LIMITATIONS.

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

     SEC. 6004. REPEAL OF OBSOLETE AND REDUNDANT PROVISIONS.

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

     SEC. 7001. DEFINITIONS.

       (a) Definitions.--Section 4 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403) is amended by adding 
     at the end the following new paragraphs:
       ``(12) The term `commercial item' means any of the 
     following:
       ``(A) Any item of a type customarily used in the course of 
     normal business operations for other than Federal Government 
     purposes, that--
       ``(i) has been sold, leased, or licensed to the general 
     public or to domestic State, or local government entities; or
       ``(ii) has been offered for sale, lease, or license to the 
     general public or to domestic State, or local government 
     entities.
       ``(B) An item intended to be used in the course of normal 
     business operations for other than Federal Government 
     purposes that is not yet available in the commercial 
     marketplace, but will be available in the commercial 
     marketplace in time to satisfy the delivery requirements 
     under a Federal Government solicitation.
       ``(C) Any item that, but for--
       ``(i) modifications of a type customarily available in the 
     commercial marketplace, or
       ``(ii) minor modifications made to meet Federal Government 
     requirements,
     would satisfy the criteria in subparagraph (A) or (B).
       ``(D) Any combination of items meeting the requirements of 
     subparagraph (A), (B), or (C) that are of a type customarily 
     combined and sold in combination to the general public.
       ``(E) Installation services, maintenance services, repair 
     services, training services, and other services if such 
     services are procured for support of an item referred to in 
     subparagraph (A), (B), (C), or (D) and if the source of such 
     services--
       ``(i) offers such services to the general public and the 
     Federal Government contemporaneously and under similar terms 
     and conditions; and
       ``(ii) offers to use the same work force for providing the 
     Federal Government with such services as the source uses for 
     providing such services to the general public.
       ``(F) Services offered and sold competitively, in 
     significant quantities, in the commercial marketplace at 
     established catalog prices or standard rates and under 
     standard commercial terms and conditions.
       ``(G) Any item, combination of items, or service referred 
     to in subparagraphs (A) through (F) notwithstanding the fact 
     that the item, combination of items, or service is 
     transferred between or among separate divisions, 
     subsidiaries, or affiliates of a contractor.
       ``(13) The term `nondevelopmental item' means any of the 
     following:
       ``(A) Any previously developed item of supply that is in 
     use by a department or agency of the United States, a State 
     or local government, or a foreign government with which the 
     United States has a mutual defense cooperation agreement.
       ``(B) Any item of supply described in subparagraph (A) that 
     requires only minor modification or modification of the type 
     customarily available in the commercial marketplace in order 
     to meet the requirements of the procuring department or 
     agency.
       ``(C) Any item of supply currently being produced that does 
     not meet the requirements of subparagraph (A) or (B) solely 
     because the item is not yet in use.
       ``(14) The term `component' means any item supplied to the 
     Federal Government as part of an end item or of another 
     component.
       ``(15) The term `commercial component' means any component 
     that is a commercial item.''.
       (b) Stylistic Amendments.--Such section is further 
     amended--
       (1) by striking out ``Act--'' in the matter preceding 
     paragraph (1) and inserting in lieu thereof ``Act:'';
       (2) by capitalizing the first letter of the first word in 
     each of paragraphs (1) through (11);
       (3) by striking out the semicolon at the end of each of 
     paragraphs (1), (2), (3), (5), (6), (7), (8), and (9) and 
     inserting in lieu thereof a period; and
       (4) by striking out ``; and'' at the end of paragraphs (4) 
     and (10) and inserting in lieu thereof a period.

     SEC. 7002. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.

       (a) In General.--The Federal Acquisition Regulation shall 
     provide regulations to implement paragraphs (12) through (15) 
     of section 4 of the Office of Federal Procurement Policy Act, 
     chapter 136 of title 10, United States Code, and sections 314 
     through 314D of the Federal Property and Administrative 
     Services Act of 1949.
       (b) Terms and Conditions.--The regulations prescribed under 
     subsection (a) shall contain a set or sets of terms and 
     conditions to be included in contracts for the acquisition of 
     commercial end items. Such terms and conditions shall, to the 
     maximum extent practicable, include only those contract 
     clauses that are--
       (1) required to implement provisions of law applicable to 
     commercial item acquisitions; or
       (2) consistent with standard commercial practice.
       (c) Terms and Conditions for Components.--Such regulations 
     shall provide that a prime contractor furnishing commercial 
     items or items other than commercial items as items or 
     components shall not be required to apply to any of its 
     divisions, subsidiaries, affiliates, subcontractors, or 
     suppliers that are furnishing commercial items as components 
     any clause, term, or condition except those that are--
       (1) required to implement provisions of law applicable to 
     subcontractors furnishing commercial items; or
       (2) determined to be consistent with standard commercial 
     practice.
       (d) Market Acceptance.--The regulations prescribed under 
     subsection (a) shall provide that, under appropriate 
     conditions, the agency head may require an offeror to 
     demonstrate, as a condition for being considered responsive, 
     that the items offered meet, among other criteria, market 
     acceptance criteria, unless such item has been satisfactorily 
     supplied to an executive agency under current or recent 
     contracts for the same or similar requirements.
       (e) Use of Fixed Price Contracts.--The regulations 
     prescribed under subsection (a) shall include a requirement 
     that firm, fixed price contracts, or fixed price contracts 
     with economic price adjustment provisions, be used for the 
     acquisition of commercial items and components.
       (f) Term of Contracts.--The regulations prescribed under 
     subsection (a) shall provide that, to the extent practicable, 
     contracts for acquisition of commercial items shall not 
     require contract performance for a term longer than customary 
     industry practice for the item being acquired. A contracting 
     officer may include in a contract provisions for economic 
     price adjustment if an extended period of performance under 
     the contract cannot be avoided.
       (g) Contract Quality Requirements.--The regulations 
     prescribed under subsection (a) shall include provisions 
     that--
       (1) permit, to the maximum extent practicable, a contractor 
     under a commercial items acquisition to use the existing 
     quality assurance system of the contractor as a substitute 
     for compliance with an otherwise applicable requirement for 
     the Government to inspect or test the commercial items before 
     the contractor's tender of those items for acceptance by the 
     Government;
       (2) require that, to the maximum extent practicable, the 
     executive agency take advantage of warranties (including 
     extended warranties) offered by offerors of commercial items 
     and use such warranties for the repair and replacement of 
     commercial items; and
       (3) set forth guidance regarding the use of past 
     performance of commercial items and sources as a factor in 
     contract award decisions.
       (h) Defense Contract Clauses.--
       (1) Repeal of dod authority.--Section 824(b) of the 
     National Defense Authorization Act for Fiscal Years 1990 and 
     1991 (Public Law 101-189; 10 U.S.C. 2325 note) is repealed.
       (2) Savings provision.--Notwithstanding subsections (b) and 
     (c), a contract of the Department of Defense entered into 
     before October 1, 1994, and a subcontract entered into before 
     such date under such a contract, may include clauses 
     developed pursuant to paragraphs (2) and (3) of section 
     824(b) of the National Defense Authorization Act for Fiscal 
     Years 1990 and 1991 (Public Law 101-189; 10 U.S.C. 2325 
     note).
                Subtitle B--Armed Services Acquisitions

     SEC. 7101. ESTABLISHMENT OF NEW CHAPTER IN TITLE 10.

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

             ``CHAPTER 136--PROCUREMENT OF COMMERCIAL ITEMS

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

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

     SEC. 7102. DEFINITIONS.

       Chapter 136 of title 10, United States Code, as added by 
     section 7001, is amended by adding after the table of 
     sections the following:

     ``Sec. 2281. Definitions

       ``In this chapter:
       ``(1) The terms `commercial item', `nondevelopmental item', 
     `component', and `commercial component' have the meanings 
     provided in section 4 of the Office of Federal Procurement 
     Policy Act.
       ``(2) The term `head of an agency' means the Secretary of 
     Defense, the Secretary of Transportation, and the 
     Administrator of the National Aeronautics and Space 
     Administration.
       ``(3) The term `agency' means the Department of Defense, 
     the Coast Guard, and the National Aeronautics and Space 
     Administration.''.

     SEC. 7103. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

       (a) In General.--Chapter 136 of title 10, United States 
     Code, as amended by section 7102, is further amended by 
     adding after section 2281 the following new section:

     ``Sec. 2282. Preference for acquisition of commercial items

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

     SEC. 7104. EXCEPTION TO COST OR PRICING DATA REQUIREMENTS FOR 
                   COMMERCIAL ITEMS.

       (a) In General.--Chapter 136 of title 10, United States 
     Code, as amended by section 7103, is further amended by 
     adding after section 2282 the following new section:

     ``Sec. 2283. Exception to cost or pricing data requirements 
       for commercial items

       ``(a) Exemption From Section 2306a If Price Based on 
     Adequate Price Competition or Established Prices.--In any 
     procurement of a commercial item, when the agreed-upon price 
     of the commercial item is based on adequate price competition 
     or on established catalog or market prices of items sold in 
     sufficient quantities to the general public--
       ``(1) the procurement shall be exempt from section 2306a of 
     this title; and
       ``(2) to the maximum extent practicable, the head of the 
     agency conducting the procurement may not require any 
     additional information from the offeror to determine price 
     reasonableness.
       ``(b) Requirement To Determine Price Reasonableness For 
     Noncompetitive Procurements.--In any case in which it is not 
     practicable to conduct a procurement of a commercial item on 
     a competitive basis and the procurement is not covered by 
     subsection (a) or by an exception in subsection (b) of 
     section 2306a of this title, the contracting officer shall 
     use price analysis to determine whether the price of the 
     contract is fair and reasonable. If the contracting officer 
     is able to determine through price analysis that the price is 
     reasonable, the procurement shall be exempt from section 
     2306a of this title. Price analysis under this subsection 
     shall be conducted by developing or obtaining from the 
     offeror or contractor, or from another source or sources, in 
     accordance with standards and procedures set forth in Federal 
     Acquisition Regulations, information on prices at which the 
     same or similar items have been sold in the commercial market 
     that is adequate for evaluating the reasonableness of the 
     price of the contract.
       ``(c) Authority To Request Cost or Pricing Data When Price 
     Reasonableness Cannot Be Determined.--In any case in which a 
     contracting officer is unable to determine under subsection 
     (b) that a price is reasonable, the contracting officer, with 
     the prior approval of the head of the procuring activity, may 
     require cost or pricing data under section 2306a of this 
     title.
       ``(d) Right To Audit.--(1) The head of an agency is 
     authorized to audit all documentation provided by an offeror 
     under subsection (b) or (c) and all books and records of the 
     offeror directly relating to such documentation, except that, 
     if the offeror has made no representation as to the 
     completeness of the documentation supplied, the head of the 
     agency is not authorized to audit for completeness.
       ``(2) The authority under this subsection shall expire--
       ``(A) one year after the date of commencement of 
     performance of the contract, or one year after the date of 
     commencement of performance of the modification of the 
     contract, with respect to which the information was provided; 
     or
       ``(B) on such other date agreed upon by the parties at the 
     time of contract award or contract definitization.
       ``(e) Limitations on Requests for Data.--The Federal 
     Acquisition Regulation shall establish reasonable limitations 
     on requests under this section for sales data relating to 
     commercial items.
       ``(f) Form of Information.--In conducting a price analysis, 
     or in requiring any additional information from an offeror, a 
     contracting officer may request only that information from an 
     offeror that is in the form regularly maintained by the 
     offeror in commercial operations, adequate to demonstrate the 
     market price of the item or items, or otherwise needed to 
     establish a fair and reasonable price.
       ``(g) Confidentiality.--All documentation received from an 
     offeror, if not otherwise in the public domain and if 
     requested by the offeror and marked as proprietary, shall be 
     treated by the Government as confidential and exempt from 
     disclosure to the extent permitted by section 552 of title 
     5.''.
       (b) Cross Reference.--Section 2306a of title 10, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(h) Exceptions Regarding Commercial Items.--For 
     provisions relating to exceptions for procurements of 
     commercial items, see section 2283 of this title.''.

     SEC. 7105. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.

       Chapter 136 of title 10, United States Code, as amended by 
     section 7104, is further amended by adding after section 2283 
     the following new section:

     ``Sec. 2284. Principle of construction with future laws

       ``A provision of law enacted after the date of the 
     enactment of the Federal Acquisition Improvement Act of 1994 
     may not be construed as applicable to purchases of commercial 
     items by an agency unless that provision of law specifically 
     refers to this section and specifically states that such 
     provision of law modifies or supersedes a provision of this 
     chapter.''.

     SEC. 7106. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

       (a) Inapplicable Provisions.--Chapter 136 of title 10, 
     United States Code, as amended by section 7105, is further 
     amended by adding after section 2284 the following new 
     section:

     ``Sec. 2285. Inapplicability of certain provisions of law

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

     SEC. 7107. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY 
                   OF CERTAIN PROVISIONS OF LAW.

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

     SEC. 7201. DEFINITIONS.

       Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.), as amended by 
     section 1553, is further amended by adding after section 313 
     the following new section:

     ``SEC. 314. DEFINITIONS RELATING TO PROCUREMENT OF COMMERCIAL 
                   ITEMS.

       ``As used in this title, the terms `commercial item', 
     `nondevelopmental item', `component', and `commercial 
     component' have the meanings provided in section 4 of the 
     Office of Federal Procurement Policy Act.''.

     SEC. 7202. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

       Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.), as amended by 
     section 7201, is further amended by adding after section 314 
     the following new section:

     ``SEC. 314A. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

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

     SEC. 7203. EXCEPTION TO COST OR PRICING DATA REQUIREMENTS FOR 
                   COMMERCIAL ITEMS.

       Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.), as amended by 
     section 7202, is further amended by adding after section 314A 
     the following new section:

     ``SEC. 314B. EXCEPTION TO COST OR PRICING DATA REQUIREMENTS 
                   FOR COMMERCIAL ITEMS.

       ``(a) Exemption From Section 304B If Price Based on 
     Adequate Price Competition or Established Prices.--In any 
     procurement of a commercial item, when the agreed-upon price 
     of the commercial item is based on adequate price competition 
     or on established catalog or market prices of items sold in 
     sufficient quantities to the general public--
       ``(1) the procurement shall be exempt from section 304B of 
     this title; and
       ``(2) to the maximum extent practicable, the executive 
     agency may not require any additional information from the 
     offeror to determine price reasonableness.
       ``(b) Requirement To Determine Price Reasonableness For 
     Noncompetitive Procurements.--In any case in which it is not 
     practicable to conduct a procurement of a commercial item on 
     a competitive basis and the procurement is not covered by 
     subsection (a) or by an exception in subsection (b) of 
     section 304B, the contracting officer shall use price 
     analysis to determine whether the price is fair and 
     reasonable. If the contracting officer is able to determine 
     through price analysis that the price is reasonable, the 
     procurement shall be exempt from section 304B of this title. 
     Price analysis under this section shall be conducted by 
     developing or obtaining from the offeror or contractor, or 
     from another source or sources, in accordance with standards 
     and procedures set forth in Federal Acquisition Regulations, 
     information on prices at which the same or similar items have 
     been sold in the commercial market that is adequate for 
     evaluating the reasonableness of the price of the contract.
       ``(c) Authority To Request Cost or Pricing Data When Price 
     Reasonableness Cannot Be Determined.--In any case in which a 
     contracting officer is unable to determine under subsection 
     (b) that a price is reasonable, the contracting officer, with 
     the prior approval of the head of the procuring activity, may 
     require cost or pricing data under section 304B.
       ``(d) Right To Audit.--(1) An executive agency is 
     authorized to audit all documentation provided by an offeror 
     under subsection (b) or (c) and all books and records of the 
     offeror directly relating to such documentation, except that, 
     if the offeror has made no representation as to the 
     completeness of the documentation supplied, the executive 
     agency is not authorized to audit for completeness.
       ``(2) The authority under this subsection shall expire--
       ``(A) one year after the date of commencement of 
     performance of the contract, or one year after the date of 
     commencement of performance of the modification of the 
     contract, with respect to which the information was provided; 
     or
       ``(B) on such other date agreed upon by the parties at the 
     time of contract award or contract definitization.
       ``(e) Limitations on Requests for Data.--The Federal 
     Acquisition Regulation shall establish reasonable limitations 
     on requests under this section for sales data relating to 
     commercial items.
       ``(f) Form of Information.--In conducting a price analysis, 
     or in requiring any additional information from an offeror, a 
     contracting officer may request only that information from an 
     offeror that is in the form regularly maintained by the 
     offeror in commercial operations, adequate to demonstrate the 
     market price of the item or items, or otherwise needed to 
     establish a fair and reasonable price.
       ``(g) Confidentiality.--All documentation received from an 
     offeror, if not otherwise in the public domain and if 
     requested by the offeror and marked as proprietary, shall be 
     treated by the Government as confidential and exempt from 
     disclosure to the extent permitted by section 552 of title 
     5.''.
       (b) Cross Reference.--Section 304B of the Federal Property 
     and Administrative Services Act of 1949, as added by section 
     1251, is amended by adding at the end the following new 
     subsection:
       ``(h) Exceptions Regarding Commercial Items.--For 
     provisions relating to exceptions for procurements of 
     commercial items, see section 314B of this title.''.

     SEC. 7204. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.

       Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.), as amended by 
     section 7203, is further amended by adding after section 314B 
     the following new section:

     ``SEC. 314C. PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.

       ``A provision of law enacted after the date of the 
     enactment of the Federal Acquisition Improvement Act of 1994 
     may not be construed as applicable to purchases of commercial 
     items by an executive agency unless that provision of law 
     specifically refers to this section and specifically states 
     that such provision of law modifies or supersedes sections 
     314 through 314D of this title.''.

     SEC. 7205. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

       Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.), as amended by 
     section 7204, is further amended by adding after section 314C 
     the following new section:

     ``SEC. 314D. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

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

     SEC. 7206. CONFORMING AMENDMENTS RELATING TO INAPPLICABILITY 
                   OF CERTAIN PROVISIONS OF LAW.

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

     SEC. 7301. CONFORMING AMENDMENT RELATING TO INAPPLICABILITY 
                   OF CERTAIN PROVISIONS OF LAW.

       (a) Cost Accounting Standards Board.--Section 26(f) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 422) is 
     amended in paragraph (2) by striking out ``where the price 
     negotiated'' and all that follows through ``(B)'' and 
     inserting in lieu thereof ``(A) for the procurement of 
     commercial items, or (B) for which the price negotiated is 
     based on''.
       (b) Certification Requirements.--Subsection (e)(7)(A) of 
     section 27 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 423(e)(7)(A)), as amended by section 4051, is 
     further amended by inserting before the period at the end the 
     following: ``, for the procurement of goods and services 
     other than commercial items''.
       (c) Drug-Free Workplace Act of 1988.--Section 5152 of the 
     Drug-Free Workplace Act of 1988 (subtitle D of title V of 
     Public Law 100-690; 41 U.S.C. 701 et seq.), as amended by 
     section 4054, is further amended by inserting after the 
     matter inserted by such section 4057 the following: ``, other 
     than a contract for the procurement of commercial items as 
     defined in section 4 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403)),''.

     SEC. 7302. FLEXIBLE DEADLINES FOR SUBMISSION OF OFFERS OF 
                   COMMERCIAL ITEMS.

       Section 18(a) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 416(a)) is amended by adding at the end the 
     following new paragraph:
       ``(4) The Administrator shall prescribe regulations 
     defining limited circumstances in which flexible deadlines 
     can be used under paragraph (3) for the submission of bids or 
     proposals for the procurement of commercial items.''.

     SEC. 7303. ADDITIONAL RESPONSIBILITIES FOR ADVOCATES FOR 
                   COMPETITION.

       (a) Responsibilities of the Advocate for Competition.--
     Section 20(c) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 418(c)) is amended to read as follows:
       ``(c) The advocate for competition for each procuring 
     activity shall be responsible for promoting full and open 
     competition, promoting the acquisition of commercial items, 
     and challenging barriers to such acquisition, including such 
     barriers as unnecessarily restrictive statements of need, 
     unnecessarily detailed specifications, and unnecessarily 
     burdensome contract clauses.''.
       (b) Repeal of Superseded Provision.--Section 28 of such Act 
     (41 U.S.C. 424) is repealed.

     SEC. 7304. PROVISIONS NOT AFFECTED.

       Nothing in this title shall be construed as modifying or 
     superseding, or as intended to impair or restrict, 
     authorities or responsibilities under--
       (1) section 315 of the Federal Property and Administrative 
     Services Act of 1949 or section 2323 of title 10, United 
     States Code;
       (2) section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759), popularly referred to 
     as the ``Brooks Automatic Data Processing Act'';
       (3) title IX of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 541 et seq.), popularly 
     referred to as the ``Brooks Architect-Engineers Act'';
       (4) section 8(a) of the Small Business Act (15 U.S.C. 
     637(a)) or any other provision of that Act; or
       (5) the Act of June 25, 1938 (41 U.S.C. 46-48c), that was 
     revised and reenacted in the Act of June 23, 1971 (85 Stat. 
     77), commonly referred to as the ``Javits-Wagner-O'Day Act''.

     SEC. 7305. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERNMENT 
                   USE OF MARKET RESEARCH.

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

     SEC. 8001. TEST PROGRAM.

       (a) In General.--The Administrator for Federal Procurement 
     Policy (in this section referred to as the ``Administrator'') 
     may conduct a program of tests of alternative and innovative 
     procurement procedures. To the extent consistent with this 
     section, such program shall be conducted consistent with 
     section 15 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 413). No more than 6 such tests shall be conducted 
     under this authority.
       (b) Designation of Agencies.--Each test conducted pursuant 
     to subsection (a) shall be limited to not more than 2 
     specific contracting activities in an agency designated by 
     the Administrator. Each agency so designated shall select the 
     contracting activities participating in the test with the 
     approval of the Administrator and shall designate a 
     procurement testing official who shall be responsible for the 
     conduct and evaluation of tests within that agency.
       (c) Test Requirements.--Tests conducted under subsection 
     (a)--
       (1) shall be developed and structured by the Administrator 
     or by the agency senior procurement executives designated 
     pursuant to section 16(3) of the Office of Federal 
     Procurement Policy Act in close coordination with the 
     Administrator;
       (2) shall be for a period of not greater than 4 years;
       (3) shall be limited to specific programs of agencies or 
     specific acquisitions;
       (4) may not include any test with a total estimated life-
     cycle cost to the Federal Government greater than 
     $100,000,000;
       (5) shall include--
       (A) a test by the National Aeronautics and Space 
     Administration of simplified procurement procedures for 
     acquisitions with an estimated annual total obligation of 
     funds of $500,000 or less;
       (B) a test by the General Services Administration of 
     expedited methods for procuring automatic data processing 
     equipment commodities; and
       (C) a test by at least one agency of streamlined procedures 
     for competition among interested sources participating in the 
     tailoring of a solicitation for the purchase of commercial 
     products; and
       (6) shall not include any procurement the cost of which is 
     expected to exceed $5,000,000 (including options).
       (d) Limitation on Total Value of Contracts Under Program.--
       (1) Limitation.--The Administrator shall ensure that the 
     total amount obligated under contracts awarded pursuant to 
     the program under this section does not exceed $600,000,000.
       (2) Monitoring.--The Administrator shall monitor the value 
     of contracts awarded pursuant to the program under this 
     section.
       (3) Prohibition on awards in excess of limit.--No contract 
     may be awarded under the program under this section if the 
     award of the contract would result in obligation of more than 
     $600,000,000 under contracts under this section.
       (e) Procedures Authorized.--Tests conducted under this 
     section may include any of the following procedures:
       (1) Publication of agency needs before drafting of a 
     solicitation.
       (2) Screening of sources and competition among capable 
     vendors.
       (3) Issuance of draft solicitations for comment.
       (4) Streamlined solicitations, with a minimized number of 
     evaluation factors and information required from vendors, 
     abbreviated periods for submission of offers, and page 
     limitations on offers.
       (5) Limitation of source selection factors to--
       (A) cost to the Federal Government;
       (B) past experience; and
       (C) quality of the contents of the offer.
       (6) Evaluation of proposals by small teams of highly 
     qualified people, limited to 30 days.
       (7) Competition among sources of preevaluated products.
       (8) Alternative notice and publication requirements.
       (9) A process in which--
       (A) the competitive process is initiated by a notice in the 
     Commerce Business Daily synopsizing the needs of the 
     executive agency conducting the test, in functional and 
     performance terms, with other specifications provided for 
     guidance only;
       (B) the notice invites interested sources to submit 
     information or samples showing their product's suitability 
     for those needs (with price quotations) or, if appropriate, 
     showing the sources' technical capability, past performance, 
     product supportability, or other qualifications (with 
     appropriate consideration to rates and other cost-related 
     factors);
       (C) contracting officials develop a request for proposals 
     (including appropriate specifications and evaluation 
     criteria) after reviewing the submittals made by interested 
     sources and, if the officials determine necessary, after 
     consultation with those sources; and
       (D) the contract is awarded after a streamlined competition 
     limited to all sources that timely provided product 
     information in response to the notice or, if appropriate, to 
     those sources determined most capable based on those 
     qualification-based factors included in an invitation to 
     submit information pursuant to subparagraph (B).
       (f) Test Plan.--Not later than 60 days before implementing 
     any test program under this section, the Administrator 
     shall--
       (1) provide a detailed test plan, including lists of any 
     regulations that are to be waived, and any written 
     determination under subsection (g)(1)(B) to the Committee on 
     Government Operations of the House of Representatives and the 
     Committee on Governmental Affairs of the Senate;
       (2) provide a copy of the plan to the appropriate 
     authorizing committees of the House of Representatives and 
     the Senate; and
       (3) publish the plan in the Federal Register and provide an 
     opportunity for public comment.
       (g) Waiver of Procurement Regulations.--
       (1) In general.--For purposes of a test conducted under 
     subsection (a), the Administrator may waive--
       (A) any provision of the Federal Acquisition Regulation 
     that is not required by statute; and
       (B) any provision of the Federal Acquisition Regulation 
     that is required by a provision of law described in paragraph 
     (2), the waiver of which the Administrator determines in 
     writing to be necessary to conduct any test of any of the 9 
     procedures described in subsection (e).
       (2) Provisions of law described.--The provisions of law 
     referred to in paragraph (1) are the following:
       (A) Section 2304 of title 10, United States Code.
       (B) Section 2305 of title 10, United States Code.
       (C) Section 2319 of title 10, United States Code.
       (D) Section 3709 of the Revised Statutes (41 U.S.C. 5).
       (E) Section 3710 of the Revised Statutes (41 U.S.C. 8).
       (F) Section 3735 of the Revised Statutes (41 U.S.C. 13).
       (G) Subsections (e), (f), and (g) of section 8 of the Small 
     Business Act (15 U.S.C. 637).
       (H) Section 310 of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 260).
       (I) Section 303 of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253).
       (J) Section 303A of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253a).
       (K) Section 303B of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253b).
       (L) Section 303C of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253c).
       (M) Section 4(6) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403(6)).
       (N) Section 18 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 416).
       (3) Proposal for additional waiver.--If the Administrator 
     determines that the conduct of a test requires the waiver of 
     a law not listed in paragraph (2) or requires approval of an 
     estimated dollar amount not permitted under subsection 
     (c)(4), the Administrator may propose legislation to 
     authorize the waiver or grant the approval. Before proposing 
     such legislation, the Administrator may provide and publish a 
     test plan as described in subsection (f). If Congress does 
     not authorize the waiver or grant the approval within 120 
     days after the date of receipt of the proposal, the proposal 
     shall be deemed to be withdrawn. A proposal not approved 
     within such 120 days may be resubmitted to Congress under 
     this paragraph at any time.
       (h) Reports and Reviews.--
       (1) Administrator.--The Administrator shall report to the 
     Congress on the results of each test conducted under 
     subsection (a).
       (2) Comptroller general.--The Comptroller General of the 
     United States shall review each test conducted under 
     subsection (a) and report to the Congress on each test and 
     shall report annually to the Congress on the conduct of and 
     results of all tests conducted under subsection (a).
       (i) Expiration of Authority.--The authority to conduct 
     tests under this section and to award contracts under such 
     tests shall expire on October 1, 1998. Contracts entered into 
     before October 1, 1998, pursuant to a test shall remain in 
     effect, notwithstanding the expiration of the authority to 
     conduct the test under this section.
       (j) Federal Aviation Administration Acquisition Pilot 
     Program.--(1) The Administrator shall delegate to the 
     Secretary of Transportation authority to conduct a test of 
     alternative and innovative procurement procedures in carrying 
     out acquisitions for one of the modernization programs under 
     the Airway Capital Investment Plan prepared pursuant to 
     section 44501(b) of title 49, United States Code.
       (2) The authority delegated under paragraph (1) shall 
     include authority for the Secretary of Transportation--
       (A) to apply any amendment or repeal of a provision of law 
     made in this Act to the pilot program before the effective 
     date of such amendment or repeal; and
       (B) to apply to a procurement of noncommercial items under 
     such program--
       (i) any authority provided in this Act (or in an amendment 
     made by a provision of this Act) to waive a provision of law 
     in the case of commercial items, and
       (ii) any exception applicable under this Act (or an 
     amendment made by a provision of this Act) in the case of 
     commercial items,

     before the effective date of such provision (or amendment) to 
     the extent that the Secretary determines necessary to test 
     the application of such waiver or exception to procurements 
     of noncommercial items.
       (3) Paragraph (2) applies with respect to--
       (A) a contract that is awarded or modified after the date 
     occurring 45 days after the date of the enactment of this 
     Act; and
       (B) a contract that is awarded before such date and is to 
     be performed (or may be performed), in whole or in part, 
     after such date.
       (4) The Administrator may use the waiver authority provided 
     under subsection (g) to waive the applicability of any 
     provision referred to in paragraph (1) of that subsection to 
     the program designated by the Secretary of Transportation 
     under this subsection.
       (k) Department of Defense Acquisition Pilot Programs.--
       (1) In general.--The Secretary of Defense is authorized to 
     designate the following defense acquisition programs for 
     participation in the defense acquisition pilot program 
     authorized by section 809 of the National Defense 
     Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note):
       (A) Fire support combined arms tactical trainer (fscatt).--
     All contracts directly relating to the procurement of a 
     training simulation system, including related hardware, 
     software, and subsystems, to perform collective training of 
     field artillery gunnery teams, with development of software 
     as required to generate the training exercises.
       (B) Joint direct attack munition (jdam i).--All contracts 
     directly relating to the development and procurement of a 
     strap-on guidance kit, using an inertially guided, Global 
     Positioning System updated guidance kit to enhance the 
     delivery accuracy of 1000-pound and 2000-pound bombs in 
     inventory.
       (C) Commercial-derivative aircraft (cda).--
       (i) All contracts related to acquisition or upgrading of 
     commercial-derivative aircraft for use in meeting future Air 
     Force airlift, tanker, and airborne warning and control 
     system requirements.
       (ii) For purposes of this subparagraph, the term 
     ``commercial-derivative aircraft'' means any of the 
     following:

       (I) Any aircraft that is of a type customarily used in the 
     course of normal business operations for other than Federal 
     Government purposes, that has been issued a type certificate 
     by the Administrator of the Federal Aviation Administration, 
     and that has been sold or leased for use in the commercial 
     marketplace or that has been offered for sale or lease for 
     use in the commercial marketplace.
       (II) Any aircraft that, but for modifications of a type 
     customarily available in the commercial marketplace, or minor 
     modifications made to meet Federal Government requirements, 
     would satisfy the criteria in subclause (I).

       (D) Commercial-derivative engine.--The commercial 
     derivative engine program with respect to all contracts 
     directly related to the acquisition of (i) commercially 
     derived engines (including spare engines), logistics support 
     equipment, technical orders, management data, and initial 
     spare parts for use in supporting the purchase of commercial-
     derivative aircraft to meet future Air Force airlift and 
     tanker requirements, including engine replacement and 
     upgrades.
       (2) Conduct of defense acquisition programs.--In the case 
     of each defense acquisition program designated under 
     paragraph (1) for participation in the Defense Acquisition 
     Pilot Program, the Secretary of Defense shall--
       (A) develop guidelines and procedures for carrying out the 
     program and the criteria to be used in measuring the success 
     of the program;
       (B) evaluate the potential costs and benefits which may be 
     derived from the innovative procurement methods and 
     procedures tested under the program; and
       (C) develop the methods to be used to analyze the results 
     of the program.
       (3) Special authority.--The authority delegated under 
     paragraph (1) may include authority for the Secretary of 
     Defense--
       (A) to apply any amendment or repeal of a provision of law 
     made in this Act to the pilot programs before the effective 
     date of such amendment or repeal; and
       (B) to apply to a procurement of noncommercial items under 
     such programs--
       (i) any authority provided in such Act (or in an amendment 
     made by a provision of such Act) to waive a provision of law 
     in the case of commercial items, and
       (ii) any exception applicable under such Act (or an 
     amendment made by a provision of such Act) in the case of 
     commercial items,

     before the effective date of such provision (or amendment) to 
     the extent that the Secretary determines necessary to test 
     the application of such waiver or exception to procurements 
     of noncommercial items.
       (4) Applicability.--(A) Paragraph (3) applies with respect 
     to--
       (i) a contract that is awarded or modified during the 
     period described in subparagraph (B); and
       (ii) a contract that is awarded before the beginning of 
     such period and is to be performed (or may be performed), in 
     whole or in part, during such period.
       (B) The period referred to in subparagraph (A) is the 
     period that begins 45 days after the date of the enactment of 
     this Act and ends on September 30, 1998.

     SEC. 8002. STUDY OF PARTICIPATION BY CERTAIN SMALL BUSINESSES 
                   IN FEDERAL PROCUREMENT.

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

     SEC. 8003. FURTHERANCE OF CONTRACT GOAL FOR SMALL 
                   DISADVANTAGED BUSINESSES AND CERTAIN 
                   INSTITUTIONS OF HIGHER EDUCATION.

       Section 2323 of title 10, United States Code, is amended to 
     read as follows:

     ``Sec. 2323. Contract goal for small disadvantaged businesses 
       and certain institutions of higher education

       ``(a) Goal.--(1) Except as provided in subsection (d), a 
     goal of 5 percent of the amount described in subsection (b) 
     shall be the objective of the Department of Defense, the 
     Coast Guard, and the National Aeronautics and Space 
     Administration in each of fiscal years 1987 through 2000 for 
     the total combined amount obligated for contracts and 
     subcontracts entered into with--
       ``(A) small business concerns, including mass media and 
     advertising firms, owned and controlled by socially and 
     economically disadvantaged individuals (as such term is used 
     in section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     and regulations issued under that section), the majority of 
     the earnings of which directly accrue to such individuals;
       ``(B) historically Black colleges and universities; and
       ``(C) minority institutions (as defined in paragraphs (3), 
     (4), and (5) of section 312(b) of the Higher Education Act of 
     1965 (20 U.S.C. 1058)), including any nonprofit research 
     institution that was an integral part of a historically Black 
     college or university before November 14, 1986.
       ``(2) The head of the agency shall establish a specific 
     goal within the overall 5 percent goal for the award of prime 
     contracts and subcontracts to historically Black colleges and 
     universities and minority institutions in order to increase 
     the participation of such colleges and universities in the 
     program provided for by this section.
       ``(3) The Federal Acquisition Regulation (issued under 
     section 25(c) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421(c)) shall provide procedures or guidelines for 
     contracting officers to set goals which agency prime 
     contractors that are required to submit subcontracting plans 
     under section 8(d)(4)(B) of the Small Business Act (15 U.S.C. 
     637(d)(4)(B)) in furtherance of the agency's program to meet 
     the 5 percent goal specified in paragraph (1) should meet in 
     awarding subcontracts, including subcontracts to minority-
     owned media, to entities described in that paragraph.
       ``(b) Amount.--
       ``(1) Department of defense.--With respect to the 
     Department of Defense, the requirements of subsection (a) for 
     any fiscal year apply to the combined total of the following 
     amounts:
       ``(A) Funds obligated for contracts entered into with the 
     Department of Defense for such fiscal year for procurement.
       ``(B) Funds obligated for contracts entered into with the 
     Department of Defense for such fiscal year for research, 
     development, test, and evaluation.
       ``(C) Funds obligated for contracts entered into with the 
     Department of Defense for such fiscal year for military 
     construction.
       ``(D) Funds obligated for contracts entered into with the 
     Department of Defense for operation and maintenance.
       ``(2) Coast guard.--With respect to the Coast Guard, the 
     requirements of subsection (a) for any fiscal year apply to 
     the total value of all prime contract and subcontract awards 
     entered into by the Coast Guard for such fiscal year.
       ``(3) National aeronautics and space administration.--With 
     respect to the National Aeronautics and Space Administration, 
     the requirements of subsection (a) for any fiscal year apply 
     to the total value of all prime contract and subcontract 
     awards entered into by the National Aeronautics and Space 
     Administration for such fiscal year.
       ``(c) Types of Assistance.--(1) To attain the goal 
     specified in subsection (a)(1), the head of the agency shall 
     provide technical assistance to the entities referred to in 
     that subsection and, in the case of historically Black 
     colleges and universities and minority institutions, shall 
     also provide infrastructure assistance.
       ``(2) Technical assistance provided under this section 
     shall include information about the program, advice about 
     agency procurement procedures, instruction in preparation of 
     proposals, and other such assistance as the agency head 
     considers appropriate. If the resources of the agency are 
     inadequate to provide such assistance, the agency head may 
     enter into contracts with minority private sector entities 
     with experience and expertise in the design, development, and 
     delivery of technical assistance services to eligible 
     individuals, business firms and institutions, acquisition 
     agencies, and prime contractors. Agency contracts with such 
     entities shall be awarded annually, based upon, among other 
     things, the number of minority small business concerns, 
     historically Black colleges and universities, and minority 
     institutions that each such entity brings into the program.
       ``(3) Infrastructure assistance provided by the Department 
     of Defense under this section to historically Black colleges 
     and universities and to minority institutions may include 
     programs to do the following:
       ``(A) Establish and enhance undergraduate, graduate, and 
     doctoral programs in scientific disciplines critical to the 
     national security functions of the Department of Defense.
       ``(B) Make Department of Defense personnel available to 
     advise and assist faculty at such colleges and universities 
     in the performance of defense research and in scientific 
     disciplines critical to the national security functions of 
     the Department of Defense.
       ``(C) Establish partnerships between defense laboratories 
     and historically Black colleges and universities and minority 
     institutions for the purpose of training students in 
     scientific disciplines critical to the national security 
     functions of the Department of Defense.
       ``(D) Award scholarships, fellowships, and the 
     establishment of cooperative work-education programs in 
     scientific disciplines critical to the national security 
     functions of the Department of Defense.
       ``(E) Attract and retain faculty involved in scientific 
     disciplines critical to the national security functions of 
     the Department of Defense.
       ``(F) Equip and renovate laboratories for the performance 
     of defense research.
       ``(G) Expand and equip Reserve Officer Training Corps 
     activities devoted to scientific disciplines critical to the 
     national security functions of the Department of Defense.
       ``(H) Provide other assistance as the Secretary determines 
     appropriate to strengthen scientific disciplines critical to 
     the national security functions of the Department of Defense 
     or the college infrastructure to support the performance of 
     defense research.
       ``(4) The head of the agency shall, to the maximum extent 
     practical, carry out programs under this section at colleges, 
     universities, and institutions that agree to bear a 
     substantial portion of the cost associated with the programs.
       ``(d) Applicability.--Subsection (a) does not apply to the 
     Department of Defense--
       ``(1) to the extent to which the Secretary of Defense 
     determines that compelling national security considerations 
     require otherwise; and
       ``(2) if the Secretary notifies Congress of such 
     determination and the reasons for such determination.
       ``(e) Competitive Procedures and Advance Payments.--To 
     attain the goal of subsection (a):
       ``(1)(A) The head of the agency shall--
       ``(i) ensure that substantial progress is made in 
     increasing awards of agency contracts to entities described 
     in subsection (a)(1);
       ``(ii) exercise his utmost authority, resourcefulness, and 
     diligence;
       ``(iii) in the case of the Department of Defense, actively 
     monitor and assess the progress of the military departments, 
     Defense Agencies, and prime contractors of the Department of 
     Defense in attaining such goal; and
       ``(iv) in the case of the Coast Guard and the National 
     Aeronautics and Space Administration, actively monitor and 
     assess the progress of the prime contractors of the agency in 
     attaining such goal.
       ``(B) In making the assessment under clauses (iii) and (iv) 
     of subparagraph (A), the agency head shall evaluate the 
     extent to which use of the authority provided in paragraphs 
     (2) and (3) and compliance with the requirement in paragraph 
     (4) is effective for facilitating the attainment of the goal.
       ``(2) To the extent practicable and when necessary to 
     facilitate achievement of the 5 percent goal described in 
     subsection (a), the agency head shall make advance payments 
     under section 2307 of this title to contractors described in 
     subsection (a). The Federal Acquisition Regulation shall 
     provide guidance to contracting officers for making advance 
     payments to entities described in subsection (a)(1) under 
     such section.
       ``(3) To the extent practicable and when necessary to 
     facilitate achievement of the 5 percent goal described in 
     subsection (a), the agency head may enter into contracts 
     using less than full and open competitive procedures 
     (including awards under section 8(a) of the Small Business 
     Act) and partial set asides for entities described in 
     subsection (a)(1), but shall pay a price not exceeding fair 
     market cost by more than 10 percent in payment per contract 
     to contractors or subcontractors described in subsection (a). 
     The agency head shall adjust the percentage specified in the 
     preceding sentence for any industry category if available 
     information clearly indicates that nondisadvantaged small 
     business concerns in such industry category are generally 
     being denied a reasonable opportunity to compete for 
     contracts because of the use of that percentage in the 
     application of this paragraph.
       ``(4) To the extent practicable, the agency head shall 
     maximize the number of minority small business concerns, 
     historically Black colleges and universities, and minority 
     institutions participating in the program.
       ``(5) The agency head shall prescribe regulations which 
     provide for the following:
       ``(A) Procedures or guidance for contracting officers to 
     provide incentives for prime contractors referred to in 
     subsection (a)(3) to increase subcontractor awards to 
     entities described in subsection (a)(1).
       ``(B) A requirement that contracting officers emphasize the 
     award of contracts to entities described in subsection (a)(1) 
     in all industry categories, including those categories in 
     which such entities have not traditionally dominated.
       ``(C) Guidance to agency personnel on the relationship 
     among the following programs:
       ``(i) The program implementing this section.
       ``(ii) The program established under section 8(a) of the 
     Small Business Act (15 U.S.C. 637(a)).
       ``(iii) The small business set-aside program established 
     under section 15(a) of the Small Business Act (15 U.S.C. 
     644(a)).
       ``(D) With respect to an agency procurement which is 
     reasonably likely to be set aside for entities described in 
     subsection (a)(1), a requirement that (to the maximum extent 
     practicable) the procurement be designated as such a set-
     aside before the solicitation for the procurement is issued.
       ``(E) Policies and procedures which, to the maximum extent 
     practicable, will ensure that current levels in the number or 
     dollar value of contracts awarded under the program 
     established under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)) and under the small business set-aside program 
     established under section 15(a) of the Small Business Act (15 
     U.S.C. 644(a)) are maintained and that every effort is made 
     to provide new opportunities for contract awards to eligible 
     entities, in order to meet the goal of subsection (a).
       ``(F) Implementation of this section in a manner which will 
     not alter the procurement process under the program 
     established under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)).
       ``(G) A requirement that one factor used in evaluating the 
     performance of a contracting officer be the ability of the 
     officer to increase contract awards to entities described in 
     subsection (a)(1).
       ``(H) Increased technical assistance to entities described 
     in subsection (a)(1).
       ``(f) Penalties and Regulations Relating to Status.--(1) 
     Whoever for the purpose of securing a contract or subcontract 
     under subsection (a) misrepresents the status of any concern 
     or person as a small business concern owned and controlled by 
     a minority (as described in subsection (a)), shall be 
     punished by imprisonment for not more than one year, or a 
     fine under title 18, or both.
       ``(2) The Federal Acquisition Regulation shall prohibit 
     awarding a contract under this section to an entity described 
     in subsection (a)(1) unless the entity agrees to comply with 
     the requirements of section 15(o)(1) of the Small Business 
     Act (15 U.S.C. 644(o)(1)).
       ``(g) Industry Categories.--(1) To the maximum extent 
     practicable, the head of the agency shall--
       ``(A) ensure that no particular industry category bears a 
     disproportionate share of the contracts awarded to attain the 
     goal established by subsection (a); and
       ``(B) ensure that contracts awarded to attain the goal 
     established by subsection (a) are made across the broadest 
     possible range of industry categories.
       ``(2) Under procedures prescribed by the head of the 
     agency, a person may request the Secretary to determine 
     whether the use of small disadvantaged business set asides by 
     a contracting activity of the agency has caused a particular 
     industry category to bear a disproportionate share of the 
     contracts awarded to attain the goal established for that 
     contracting activity for the purposes of this section. Upon 
     making a determination that a particular industry category is 
     bearing a disproportionate share, the agency head shall take 
     appropriate actions to limit the contracting activity's use 
     of set asides in awarding contracts in that particular 
     industry category.
       ``(h) Compliance With Subcontracting Plan Requirements.--
     (1) The Federal Acquisition Regulation shall contain 
     regulations to ensure that potential contractors submitting 
     sealed bids or competitive proposals to the agency for 
     procurement contracts to be awarded under the program 
     provided for by this section are complying with applicable 
     subcontracting plan requirements of section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)).
       ``(2) The regulations required by paragraph (1) shall 
     ensure that, with respect to a sealed bid or competitive 
     proposal for which the bidder or offeror is required to 
     negotiate or submit a subcontracting plan under section 8(d) 
     of the Small Business Act (15 U.S.C. 637(d)), the 
     subcontracting plan shall be a factor in evaluating the bid 
     or proposal.
       ``(i) Annual Report.--(1) Not later than December 15 of 
     each year, the head of the agency shall submit to Congress a 
     report on the progress of the agency toward attaining the 
     goal of subsection (a) during the preceding fiscal year.
       ``(2) The report required under paragraph (1) shall include 
     the following:
       ``(A) A full explanation of any progress toward attaining 
     the goal of subsection (a).
       ``(B) A plan to achieve the goal, if necessary.
       ``(3) The report required under paragraph (1) shall also 
     include the following:
       ``(A) The aggregate differential between the fair market 
     price of all contracts awarded pursuant to subsection (e)(3) 
     and the estimated fair market price of all such contracts had 
     such contracts been entered into using full and open 
     competitive procedures.
       ``(B) An analysis of the impact that subsection (a) shall 
     have on the ability of small business concerns not owned and 
     controlled by socially and economically disadvantaged 
     individuals to compete for contracts with the agency.
       ``(C) A description of the percentage of contracts 
     (actions), the total dollar amount (size of action), and the 
     number of different entities relative to the attainment of 
     the goal of subsection (a), separately for Black Americans, 
     Native Americans, Hispanic Americans, Asian Pacific 
     Americans, and other minorities.
       ``(j) Definitions.--In this section:
       ``(1) The term `agency' means the Department of Defense, 
     the Coast Guard, and the National Aeronautics and Space 
     Administration.
       ``(2) The term `head of an agency' means the Secretary of 
     Defense, the Secretary of Transportation, and the 
     Administrator of the National Aeronautics and Space 
     Administration.''.

     SEC. 8004. EDUCATION AND TRAINING.

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

     SEC. 8005. DEPARTMENT OF DEFENSE ACQUISITION OF INTELLECTUAL 
                   PROPERTY RIGHTS.

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

     SEC. 8006. SENSE OF CONGRESS ON NEGOTIATED RULEMAKING.

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

     SEC. 8007. VENDOR AND EMPLOYEE EXCELLENCE AWARDS.

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

     SEC. 8008. CODIFICATION OF ACCOUNTING REQUIREMENT FOR 
                   CONTRACTED ADVISORY AND ASSISTANCE SERVICES.

       (a) Funding To Be Identified in Budget.--Section 1105 of 
     title 31, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(g)(1) The Director of the Office of Management and 
     Budget shall establish the funding for consulting services 
     for each department and agency as a separate object class in 
     each budget annually submitted to the Congress under this 
     section.
       ``(2)(A) In paragraph (1), except as provided in 
     subparagraph (B), the term `advisory and assistance services' 
     means the following services when provided by nongovernmental 
     sources:
       ``(i) Management and professional support services.
       ``(ii) Studies, analyses, and evaluations.
       ``(iii) Engineering and technical services.
       ``(B) In paragraph (1), the term `advisory and assistance 
     services' does not include the following services:
       ``(i) Routine automated data processing and 
     telecommunications services (as defined in the Federal 
     Information Resources Management Regulation prescribed by the 
     Administrator of General Services) unless such services are 
     an integral part of a contract for the procurement of 
     advisory and assistance services.
       ``(ii) Architectural and engineering services.
       ``(iii) Technical support of research and development 
     activities.
       ``(iv) Research on basic mathematics or medical, 
     biological, physical, social, psychological, or other 
     phenomena.''.
       (b) Repeal of Source Law.--Section 512 of Public Law 102-
     394 (106 Stat. 1826) is repealed.
       (c) Repeal of Superseded Provisions.--
       (1) DOD specific law.--Section 2212 of title 10, United 
     States Code, is repealed.
       (2) Government-wide law.--Section 1114 of title 31, United 
     States Code, is repealed.
       (3) Clerical amendments.--The table of sections at the 
     beginning of chapter 131 of title 10, United States Code, is 
     amended by striking out the item relating to section 2212. 
     The table of sections at the beginning of chapter 11 of title 
     31, United States Code, is amended by striking out the item 
     relating to section 1114.

     SEC. 8009. TECHNICAL AND CLERICAL AMENDMENTS.

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

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

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

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

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

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

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

                        ``TITLE I--ORGANIZATION

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

                    ``TITLE II--PROPERTY MANAGEMENT

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

                   ``TITLE III--PROCUREMENT PROCEDURE

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

                  ``TITLE IV--FOREIGN EXCESS PROPERTY

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

                     ``TITLE VI--GENERAL PROVISIONS

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

                  ``TITLE VIII--URBAN LAND UTILIZATION

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

           ``TITLE IX--SELECTION OF ARCHITECTS AND ENGINEERS

``Sec. 901.  Definitions.
``Sec. 902.  Policy.
``Sec. 903.  Requests for data on architectural and engineering 
              services.
``Sec. 904.  Negotiation of contracts for architectural and engineering 
              services.
``Sec. 905.  Short title.''.

       (b) Amendments for Stylistic Consistency.--
       (1) Office of federal procurement policy act.--The Office 
     of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
     amended so that the section designation and section heading 
     of each section of such Act is in the same form and typeface 
     as the section designation and heading of this section.
       (2) Federal property and administrative services act of 
     1949.--The Federal Property and Administrative Services Act 
     of 1949 (41 U.S.C. 471 et seq.) is amended so that the 
     section designation and section heading of each section of 
     such Act is in the same form and typeface as the section 
     designation and heading of this section.
       (c) Repeals of Executed Provisions.--The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.) is amended--
       (1) by striking out section 13; and
       (2) by striking out the first section 15.
       (d) Cross Reference Corrections.--Section 3552 of title 31, 
     United States Code, is amended--
       (1) by striking out ``section 111(h)'' and inserting in 
     lieu thereof ``section 111(f)''; and
       (2) by striking out ``759(h)'' and inserting in lieu 
     thereof ``759(f)''.
       (e) Consistency of Terminology With Customary Usage.--
     Section 304(b) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 254(b)) is amended by 
     striking out ``per centum'' each place it appears and 
     inserting in lieu thereof ``percent''.
       (f) Enactment of Popular Names of Certain Acts.--
       (1) Brooks architect-engineers act.--Title IX of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 541-544) is amended by adding at the end the following 
     new section:

     ``SEC. 905. SHORT TITLE.

       ``This title may be cited as the `Brooks Architect-
     Engineers Act'.''.
       (2) Brooks automatic data processing act.--Section 111 of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 759) is amended by adding at the end the following 
     new subsection:
       ``(h) This section may be cited as the `Brooks Automatic 
     Data Processing Act'.''.
       (3) Buy american act.--The Act of March 3, 1933 (41 U.S.C. 
     10a-10c), commonly referred to as the ``Buy American Act'', 
     is amended by adding at the end the following new section:
       ``Sec. 5. This Act may be cited as the `Buy American 
     Act'.''.
       (4) Javits-wagner-0'day act.--The Act entitled `An Act to 
     create a Committee on Purchases of Blind-made Products, and 
     for other purposes', approved June 25, 1938 (41 U.S.C. 46-
     48c), that was revised and reenacted in the Act of June 23, 
     1971 (85 Stat. 77), is amended by adding at the end the 
     following new section:


                             ``short title

       ``Sec. 7. This Act may be cited as the `Javits-Wagner-O'Day 
     Act'.''.
               TITLE IX--EFFECTIVE DATES AND REGULATIONS

     SEC. 9001. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), this 
     Act and the amendments made by this Act shall apply with 
     respect to any contract for which a solicitation for bid or 
     proposal is issued after--
       (1) 30 days have expired after the issuance in final form 
     of revisions to the Federal Acquisition Regulation pursuant 
     to section 9002; or
       (2) 270 days have expired after the date of the enactment 
     of this Act;
     whichever is earlier.
       (b) Specific Effective Dates.--(1) Titles III and VI of 
     this Act, and the amendments made by such titles, shall take 
     effect on the date of the enactment of this Act.
       (2) Subtitle D of title I of this Act, and the amendments 
     made by such subtitle (relating to procurement protests), 
     shall apply with respect to any protest filed after the 
     expiration of the 90-day period beginning on the date of the 
     enactment of this Act.

     SEC. 9002. REGULATIONS.

       Not later than 240 days after the date of the enactment of 
     this Act, the Federal Acquisition Regulation (referred to in 
     section 25(c) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421(c))) shall be revised, in final form, to 
     implement this Act and the amendments made by this Act.

     SEC. 9003. EVALUATION BY THE COMPTROLLER GENERAL.

       (a) Evaluation Relating to Issuance of Regulations.--Not 
     later than 180 days after the issuance in final form of 
     revisions to the Federal Acquisition Regulation pursuant to 
     section 9002, the Comptroller General shall submit to 
     Congress a report evaluating compliance with such section 
     9002.
       (b) Evaluation of Implementation of Regulations.--Not later 
     than 18 months after issuance in final form of revisions to 
     the Federal Acquisition Regulation pursuant to section 9002, 
     the Comptroller General shall submit to Congress a report 
     evaluating the effectiveness of the regulations implementing 
     this Act in streamlining the acquisition system and 
     fulfilling the other purposes of this Act.
  Mr. NUNN. Mr. President, I move that the Senate disagree with the 
House amendment to the Senate bill, and request a conference with the 
House on the disagreeing votes of the two Houses, and that the Chair be 
authorized to appoint conferees.
  The motion was agreed to, and the Presiding Officer (Mr. Akaka) 
appointed Mr. Glenn, Mr. Nunn, Mr. Bumpers, Mr. Sasser, Mr. Exon, Mr. 
Levin, Mr. Pryor, Mr. Bingaman, Mr. Shelby, Mr. Dorgan, Mr. Roth, Mr. 
Thurmond, Mr. Stevens, Mr. Warner, Mr. Cohen, Mr. Pressler, Mr. McCain, 
and Mr. Smith, conferees on the part of the Senate.

                          ____________________