[Congressional Record Volume 140, Number 123 (Wednesday, August 24, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 24, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              FEDERAL ACQUISITION STREAMLINING ACT OF 1994

 Mr. BINGAMAN. Mr. President, last night the Senate approved 
the conference report on S. 1587, the Federal Acquisition Streamlining 
Act of 1994. In doing so, it took a historic step toward making the 
Government work more efficiently and effectively.
  Last night we concluded a long process begun in 1991 and 1992 with a 
comprehensive review of Federal acquisition law directed in section 800 
of the national defense authorization for fiscal year 1991. The review 
panel, which came to be known as the section 800 panel, reviewed over 
600 statutes and recommended repeal or amendment of nearly 300. In 
short, they found a jungle of conflicting, obsolete, and ineffective 
laws which stifled the Federal acquisition process and wasted the 
taxpayers' funds in huge amounts.
  Their 1992 report was the catalyst for all that followed, both here 
in the Congress and in the executive branch. I want to commend at the 
end of this process the fine work which Rear Adm. William Vincent and 
his colleagues in Government and industry did at its beginning, and I 
ask unanimous consent that their names appear at the end of my 
statement.
  Mr. President, the section 800 panel laid the foundation, but this 
bill would not now almost be law without the Vice President's 
leadership in the National Performance Review. Procurement reform is an 
idea whose time came years ago, but it took strong leadership at the 
top to move from idea to reality.
  In that spirit, this act empowers the Defense Secretary and the 
Director of the Office of Federal Procurement Policy, to implement many 
new, streamlined acquisition procedures. Secretary Perry and Dr. Kelman 
have spoken passionately about their intention to make the system work 
more effectively, once legislation enabled them to do so. Mr. 
President, that time is now.
  This legislation reorients the Federal procurement bureaucracy toward 
the commercial marketplace and makes it easier to buy commercial 
products and services, cheaper and quicker. For too long, we have had 
to endure a system that operated with excess layers of unmotivated 
bureaucracy and over-abundant specifications which developed special, 
government-unique items.
  The act raises the threshold for use of new streamlined procedures 
from $25,000 to $100,000. For acquisitions below that contract value, 
this bill will clear away burdensome certification and paperwork 
requirements, while reserving first contracting opportunity for small 
businesses. Procurements under $100,000 comprise 96 percent of all 
Federal contracting actions, so the potential for savings is dramatic. 
The goal is to make those small, low-risk projects as economical and 
simple as possible for Government to offer and business, particularly 
small business, to win.
  Perhaps the most innovative process improvement in this act is the 
development of the Federal Acquisition Network, FACNET. The Government 
is moving into the information age at a breathtaking rate. This bill 
provides for the implementation of electronic bidding, contracting, 
negotiation, payment, and other actions now done by hand. The 
electronic bulletin board will replace the actual bulletin board in 
place now at many Federal contracting facilities.
  After this system is up and running, any small business with a 
computer and modem will be able to participate in the process, 
regardless of location or size. This is an especially important feature 
in a rural State like New Mexico where many small businesses want to 
contract with the Government, but are too distant to justify the trip 
to the contracting agency.
  Over the past 2 years, the Members of this body and their staffs have 
worked tirelessly to implement the recommendations of the section 800 
panel and the National Performance Review, consider relevant 
suggestions from small and large businesses, professional associations, 
citizens groups, and interested individuals.
  Last October, Senators Glenn, Nunn, Levin, Bumpers, Lieberman, Roth, 
Cohen, and I introduced S. 1587 after months of bipartisan tricommittee 
staff work. This year, we had the benefit of testimony in three joint 
Armed Services and Governmental Affairs hearings from all those groups. 
That testimony was excellent and instrumental in improving on the 
section 800 panel's recommendations. Additionally, we have held 
numerous meetings with interested private and government groups.
  I commend the leadership of the Government Affairs, Armed Services, 
and Small Business Committees for their thorough, persistent, and 
bipartisan dedication to the concept of reform. Senators Glenn and Roth 
on the Governmental Affairs Committee have long recognized the need for 
thorough-going reform. Senators Nunn and Thurmond on our Armed Services 
Committee have worked tirelessly to reform the system in the interest 
of maintaining a strong defense. Senators Bumpers and Pressler saw 
reform as an opportunity to provide small firms greater access to the 
Federal acquisition system.
  The leadership from the chairmen and ranking members of the three 
committees was crucial in insuring that this complex bill was 
developed, introduced, and moved through the process to last night's 
approval of the conference report.
  At the subcommittee level, where many of the concepts in this bill 
were developed, I want to acknowledge the leadership of Senators Levin 
and Cohen on the Governmental Affairs Subcommittee on Oversight of 
Government Management, and Senators Coats and Smith, who served with me 
on the Armed Services Subcommittee of jurisdiction over the past 4 
years. Senator Coats played a crucial role in 1991 in helping persuade 
the Pentagon to pursue section 800 mandate and Senator Smith has pushed 
throughout the past 2 years for the most comprehensive reform possible.
  As with most of our legislation, the heavy lifting is often left to 
the staff. Senators Nunn, Thurmond, Smith, and I had the support of 
some of the best in Congress in Andy Effron and Jon Etherton. Many 
times, when the drafting process bogged down over some arcane point of 
acquisition law or congressional process, Andy and Jon cleared away the 
obstacles with clear reasoning that kept the process moving. Senators 
Bumpers and Pressler and the entire Small Business Committee benefitted 
from the experience and unique perspective of Bill Montalto, who ably 
represented the small business community.
  In the Government Affairs Committee, Tom Sisti, John Brosnan, and 
Mark Forman were steadfast in the reform effort. Day after day, they 
acted as the focal point to interpret, re-write, and analyze the impact 
of the voluminous administration, business, and congressional reform 
proposals we received right up until the conference report was filed. 
Theirs was a monumental effort, which resulted in many long nights and 
weekends, but was critical to the success we now enjoy on this bill. 
Their contribution cannot be overpraised.
  Senator Levin was served by one of the best minds on the staff, Peter 
Levine. No one knows this bill better than Peter. Numerous times, when 
progress seemed elusive, Peter provided clear and incisive solutions to 
very complex language drafting and interpretation questions.
  On my staff, Ed McGaffigan and Mike Hammon were particularly helpful 
in dealing with important procurement policy in the Defense Department, 
commercial product acquisition, and the acquisition work force.
  Finally, I join Senator Nunn in praising the work of the Senate and 
House legislative counsels, Gregg Scott and Sherry Chriss, who handled 
this legislation while simultaneously producing the National Defense 
Authorization Act for fiscal year 1995. They have worked tirelessly for 
weeks on end and I hope they both know how much we appreciate their 
service.
  In conclusion, Mr. President, as I said before, this is but the first 
step. We have crafted comprehensive reform legislation that must be 
carefully and energetically implemented by the administration. We have 
sent the message that the emphasis should be on less--less restrictive 
directives, less use of unnecessary contract language, and less 
bureaucracy. There must be a cultural change in the acquisition work 
force away from procedures which are designed to shield contracting 
personnel from criticism and discourage initiative. The new directives 
must encourage use of judgement and reward those who do so. That will 
indeed be procure reform on a grand scale. That will be reinventing 
government. The need is real--the time is now.
  The list of panel members follows:

                             Panel Members

       Pete Bryan, Director, Contract Policy & Administration, 
     Office of the Secretary of Defense.
       Allan Burman, Administrator for Federal Procurement Policy.
       Anthony Gamboa, Deputy General Counsel, Department of the 
     Army.
       Jack Harding, Vice President, Contracts, Raytheon 
     Corporation.
       LeRoy Haugh, Vice President, Procurement & Finance, 
     Aerospace Industries Association.
       Thomas J. Madden, Partner, Venable, Baetjer, Howard and 
     Civiletti.
       Ralph Nash, Jr., Professor of Law, George Washington 
     University.
       F. Whitten Peters, Partner, Williams and Connolly.
       Gary Quigley, Deputy General Counsel, Defense Logistics 
     Agency.
       Major General John D. Slinkard, USAF, Deputy Chief of Staff 
     for Contracting, Headquarters, Air Force Materiel Command.
       Rear Admiral W. L. Vincent, USN, Commandant, Defense 
     Systems Management College.
       Robert D. Wallick, Partner, Steptoe & Johnson.
       Harvey Wilcox, Deputy General Counsel, Department of the 
     Navy.


                               task force

       Executive Secretary: Donald M. Freedman (DSMC).
       Task Force Directors: C. Kenneth Allard, LTC(P), USA 
     (DSMC), Thomas J. Dolan, Jr. (ONR), Susan P. McNeill, Col, 
     USAF.
       Task Force Members: JoAnne L. Barreca (DLA), Benjamin B.C. 
     Capshaw, LCDR, USNR (DSMC), James Cohen, Lt Col, USAF, Stuart 
     A. Hazlett (SAF-AQC), Barry Kline (AMC), C. Jean Kopala, Maj, 
     USAF (DSMC).
       William E. Mounts (Contract Counsel), Karen O'Brien, CPT, 
     USA (DSMC), Michael J. Renner, Lt Col, USAF, Michael Rose, Lt 
     Col, USAFR, Diane M. Sidebottom (DLA).
       James Wayne Skinner (NAVSUP), Jack L. Soesbe, MAJ, USA 
     (DSMC), Theresa M. Squillacote (DSMC), Jerry Stahl (AMC), 
     Donald J. Suda (DLA), Bruce N. Warner (DSMC).
       Administrative Staff: Wilma J. Frey (DSMC), Laura J. Neal 
     (DSMC), Linda L. Snellings (DSMC), Megan A. Weaver 
     (DSMC).

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