[Congressional Record Volume 141, Number 142 (Wednesday, September 13, 1995)]
[House]
[Pages H8904-H8910]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments wee submitted as 
follows:

                               H.R. 1670

                         Offered By: Mr. Spence

       Amendment No. 6: (1) Strike out title IV (page 100, 
     starting on line 13, and all that follows through line 18 on 
     page 143) and insert in lieu thereof the following:

              TITLE IV--STREAMLINING OF DISPUTE RESOLUTION

                     Subtitle A--General Provisions

     SEC. 401. DEFINITIONS.

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

                     ``TITLE II--DISPUTE RESOLUTION

                    ``Subtitle A--General Provisions

     ``SEC. 201. DEFINITIONS.

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

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

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

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

     SEC. 411. ESTABLISHMENT.

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

     SEC. 412. MEMBERSHIP.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 401, is further amended by 
     adding at the end the following:
     
[[Page H 8905]]


     ``SEC. 202. MEMBERSHIP.

       ``(a) Appointment.--(1)(A) The Defense Board shall consist 
     of judges appointed by the Secretary of Defense from a 
     register of applicants maintained by the Defense Board, in 
     accordance with rules issued by the Defense Board for 
     establishing and maintaining a register of eligible 
     applicants and selecting Defense Board judges. The Secretary 
     shall appoint a judge without regard to political affiliation 
     and solely on the basis of the professional qualifications 
     required to perform the duties and responsibilities of a 
     Defense Board judge.
       ``(B) The Civilian Board shall consist of judges appointed 
     by the Administrator of General Services from a register of 
     applicants maintained by the Civilian Board, in accordance 
     with rules issued by the Civilian Board for establishing and 
     maintaining a register of eligible applicants and selecting 
     Civilian Board judges. The Administrator shall appoint a 
     judge without regard to political affiliation and solely on 
     the basis of the professional qualifications required to 
     perform the duties and responsibilities of a Civilian Board 
     judge.
       ``(2) The members of the Defense Board and the Civilian 
     Board shall be selected and appointed to serve in the same 
     manner as administrative law judges appointed pursuant to 
     section 3105 of title 5, United States Code, with an 
     additional requirement that such members shall have had not 
     fewer than five years of experience in public contract law.
       ``(3) Notwithstanding paragraph (2) and subject to 
     subsection (b), the following persons shall serve as Board 
     judges:
       ``(A) For the Defense Board, any full-time member of the 
     Armed Services Board of Contract Appeals serving as such on 
     the day before the effective date of this title.
       ``(B) For the Civilian Board, any full-time member of any 
     agency board of contract appeals other than the Armed 
     Services Board of Contract Appeals serving as such on the day 
     before the effective date of this title.
       ``(C) For either the Defense Board or the Civilian Board, 
     any person serving on the day before the effective date of 
     this title in a position at a level of assistant general 
     counsel or higher with authority delegated from the 
     Comptroller General to decide
      bid protests under subchapter V of chapter 35 of title 31, 
     United States Code.
       ``(b) Removal.--Members of the Defense Board and the 
     Civilian Board shall be subject to removal in the same manner 
     as administrative law judges, as provided in section 7521 of 
     title 5, United States Code.
       ``(c) Compensation.--Compensation for the Chairman of the 
     Defense Board and the Chairman of the Civilian Board and all 
     other members of each Board shall be determined under section 
     5372a of title 5, United States Code.''.

     SEC. 413. CHAIRMAN.

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

     ``SEC. 203. CHAIRMAN.

       ``(a) Designation.--(1)(A) The Chairman of the Defense 
     Board shall be designated by the Secretary of Defense to 
     serve for a term of five years. The Secretary shall select 
     the Chairman from among sitting judges each of whom has had 
     at least five years of service--
       ``(i) as a member of the Armed Services Board of Contract 
     Appeals; or
       ``(ii) in a position at a level of assistant general 
     counsel or higher with authority delegated from the 
     Comptroller General to decide bid protests under subchapter V 
     of chapter 35 of title 31, United States Code (as in effect 
     on the day before the effective date of this title).
       ``(B) The Chairman of the Civilian Board shall be 
     designated by the Administrator of General Services to serve 
     for a term of five years. The Administrator shall select the 
     Chairman from among sitting judges each of whom has had at 
     least five years of service--
       ``(i) as a member of an agency board of contract appeals 
     other than the Armed Services Board of Contract Appeals; or
       ``(ii) in a position at a level of assistant general 
     counsel or higher with authority delegated from the 
     Comptroller General to decide bid protests under subchapter V 
     of chapter 35 of title 31, United States Code (as in effect 
     on the day before the effective date of this title).
       ``(2) A Chairman of a Board may continue to serve after the 
     expiration of the Chairman's term until a successor has taken 
     office. A Chairman may be reappointed any number of times.
       ``(b) Responsibilities.--The Chairman of the Defense Board 
     or the Civilian Board, as the case may be, shall be 
     responsible on behalf of the Board for the executive and 
     administrative operation of the Board, including functions of 
     the Board with respect to the following:
       ``(1) The selection, appointment, and fixing of the 
     compensation of such personnel, pursuant to part III of title 
     5, United States Code, as the Chairman considers necessary or 
     appropriate, including a Clerk of the Board, a General 
     Counsel, and clerical and legal assistance for Board judges.
       ``(2) The supervision of personnel employed by or assigned 
     to the Board, and the distribution of work among such 
     personnel.
       ``(3) The operation of an Office of the Clerk of the Board, 
     including the receipt of all filings made with the Board, the 
     assignment of cases, and the maintenance of all records of 
     the Board.
       ``(4) The prescription of such rules and regulations as the 
     Chairman considers necessary or appropriate for the 
     administration and management of the Board.
       ``(c) Vice Chairmen.--The Chairman of the Defense Board or 
     the Civilian Board, as the case may be, may designate up to 
     four other Board judges as Vice Chairmen. The Chairman may 
     divide the Board into two divisions, one for handling 
     contract disputes and one for handling protests, and, if such 
     division is made, shall
      assign a Vice Chairman to head each division. The Vice 
     Chairmen, in the order designated by the Chairman, shall 
     act in the place and stead of the Chairman during the 
     absence of the Chairman.''.

     SEC. 414. RULEMAKING AUTHORITY.

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

     ``SEC. 204. RULEMAKING AUTHORITY.

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

     SEC. 415. AUTHORIZATION OF APPROPRIATIONS.

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

     ``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

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

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

     SEC. 421. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

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

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

     ``SEC. 211. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

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

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

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

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

       ``With reasonable promptness after the submission to the 
     Defense Board or the Civilian Board of a contract dispute 
     under section 213 or a bid protest under section 214, a Board 
     judge to whom the contract dispute or protest is assigned 
     shall request the parties to meet with a Board judge, or an 
     attorney employed by the Board concerned, for the purpose of 
     attempting to resolve the dispute or protest through 
     alternative means of dispute resolution. Formal proceedings 
     in the appeal shall then be suspended until such time as any 
     party or a Board judge to whom the dispute or protest is 
     assigned determines that alternative means of dispute 
     resolution are not appropriate for resolution of the dispute 
     or protest.''.

     SEC. 423. CONTRACT DISPUTES.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 422, is further amended by 
     adding at the end the following:
     
[[Page H 8906]]


     ``SEC. 213. CONTRACT DISPUTES.

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

     SEC. 424. PROTESTS.

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

     ``SEC. 214. PROTESTS.

       ``(a) Review Required Upon Request.--Upon request of an 
     interested party in connection with any procurement conducted 
     by an executive agency, the Defense Board or the Civilian 
     Board, as the case may be, shall review, as provided in this 
     section, any decision by the head of the executive agency 
     alleged to be arbitrary or capricious or to violate a statute 
     or regulation. A decision or order of the Board concerned 
     pursuant to this section shall not be subject to 
     interlocutory appeal or review.
       ``(b) Standard of Review.--In deciding a protest, the Board 
     concerned may consider all evidence that is relevant to the 
     decision under protest. The protester may prevail only by 
     showing that the decision was arbitrary or capricious or 
     violated a statute or regulation.
       ``(c) Notification.--Within one day after the receipt of a 
     protest, the Board concerned shall notify the executive 
     agency involved of the protest.
       ``(d) Suspension of Contract Award.--(1) Except as provided 
     in paragraph (2) of this subsection, a contract may not be 
     awarded in any procurement after the executive agency has 
     received notice of a protest with respect to such procurement 
     from the Board concerned and while the protest is pending.
       ``(2) The head of the procuring activity responsible for 
     award of a contract may authorize the award of the contract 
     (notwithstanding a protest of which the executive agency has 
     notice under this section)--
       ``(A) upon a written finding that urgent and compelling 
     circumstances which significantly affect interests of the 
     United States will not permit waiting for the decision of the 
     Board concerned under this section; and
       ``(B) after the Board concerned is advised of that finding.
       ``(3) A finding may not be made under paragraph (2)(A) of 
     this subsection unless the award of the contract
      is otherwise likely to occur within 30 days after the making 
     of such finding.
       ``(4) The suspension of the award under paragraph (1) shall 
     not preclude the executive agency concerned from continuing 
     the procurement process up to but not including the award of 
     the contract.
       ``(e) Suspension of Contract Performance.--(1) A contractor 
     awarded an executive agency contract may, during the period 
     described in paragraph (4), begin performance of the contract 
     and engage in any related activities that result in 
     obligations being incurred by the United States under the 
     contract unless the contracting officer responsible for the 
     award of the contract withholds authorization to proceed with 
     performance of the contract.
       ``(2) The contracting officer may withhold an authorization 
     to proceed with performance of the contract during the period 
     described in paragraph (4) if the contracting officer 
     determines in writing that--
       ``(A) a protest is likely to be filed; and
       ``(B) the immediate performance of the contract is not in 
     the best interests of the United States.
       ``(3)(A) If the executive agency awarding the contract 
     receives notice of a protest in accordance with this section 
     during the period described in paragraph (4)--
       ``(i) the contracting officer may not authorize performance 
     of the contract to begin while the protest is pending; or
       ``(ii) if authorization for contract performance to proceed 
     was not withheld in accordance with paragraph (2) before 
     receipt of the notice, the contracting officer shall 
     immediately direct the contractor to cease performance under 
     the contract and to suspend any related activities that may 
     result in additional obligations being incurred by the United 
     States under that contract.
       ``(B) Performance and related activities suspended pursuant 
     to subparagraph (A)(ii) by reason of a protest may not be 
     resumed while the protest is pending.
       ``(C) The head of the procuring activity may authorize the 
     performance of the contract (notwithstanding a protest of 
     which the executive agency has notice under this section)--
       ``(i) upon a written finding that urgent and compelling 
     circumstances that significantly affect interests of the 
     United States will not permit waiting for the decision 
     concerning the protest by the Board concerned; and
       ``(ii) after the Board concerned is notified of that 
     finding.
       ``(4) The period referred to in paragraphs (2) and (3)(A), 
     with respect to a contract, is the period beginning on the 
     date of the contract award and ending on the later of--
       ``(A) the date that is 10 days after the date of the 
     contract award; or
       ``(B) the date that is 5 days after the debriefing date 
     offered to an unsuccessful offeror for any debriefing that is 
     requested and, when requested, is required.
       ``(f) The authority of the head of the procuring activity 
     to make findings and to authorize the award and performance 
     of contracts under subsections (d) and (e) of this section 
     may not be delegated.
       ``(g) Procedures.--
       ``(1) Proceedings and discovery.--The Board concerned shall 
     conduct proceedings and allow discovery to the minimum extent 
     necessary for the expeditious, fair, and cost-effective 
     resolution of the protest. The Board shall allow discovery 
     only in a case in which the Board determines that the written 
     submissions of the parties do not provide an adequate basis 
     for a fair resolution of the protest. Such discovery shall be 
     limited to material which is relevant to the grounds of 
     protest or to such affirmative
      defenses as the executive agency involved, or any intervenor 
     supporting the agency, may raise.
       ``(2) Priority.--The Board concerned shall give priority to 
     protests filed under this section over contract disputes and 
     alternative dispute services. Except as provided in paragraph 
     (3), the Board concerned shall issue its final decision 
     within 65 days after the date of the filing of the protest, 
     unless the Chairman determines that the specific and unique 
     circumstances of the protest require a longer period, in 
     which case the Board concerned shall issue such decision 
     within the longer period determined by the Chairman. An 
     amendment that adds a new ground of protest should be 
     resolved, to the maximum extent practicable, within the time 
     limits established for resolution of the initial protest.
       ``(3) Threshold.--(A) Except as provided in subparagraph 
     (B), any protest in which the anticipated value of the 
     contract award that will result from the protested 
     procurement, as estimated by the executive agency involved, 
     is less than $30,000,000 shall be considered under simplified 
     rules of procedure. Such simplified rules shall provide that 
     discovery in such protests shall be in writing only. Such 
     written discovery shall be the minimum necessary for the 
     expeditious, fair, and cost-effective resolution of the 
     protest and shall be allowed only if the Board determines 
     that the written submissions of the parties do not provide an 
     adequate basis for a fair resolution of the protest. Such 
     protests shall be decided by a single Board judge. The Board 
     concerned shall issue its final decision in each such protest 
     within 45 days after the date of the filing of the protest, 
     unless the Chairman determines that the specific and unique 
     circumstances of the protest require a longer period, in 
     which case the Board concerned shall issue such decision 
     within the longer period determined by the Chairman.
       ``(B) If the Chairman of the Board concerned determines 
     that special and unique circumstances of a protest that would 
     otherwise qualify for the simplified rules described in 
     subparagraph (A), including the complexity of a protest, 
     requires the use of full procedures as described in 
     paragraphs (1) and (2), the Chairman shall use such 
     procedures in lieu of the simplified rules described in 
     subparagraph (A).
       ``(4) Calculation of time for adr.--In calculating time for 
     purposes of paragraph (2) or (3) of this subsection, any days 
     during which proceedings are suspended for the purpose of 
     attempting to resolve the protest by alternative means of 
     dispute resolution, up to a maximum of 20 days, shall not be 
     counted.
       ``(5) Dismissal of frivolous protests.--The Board concerned 
     may dismiss a protest that the Board concerned determines--
       ``(A) is frivolous,
       ``(B) has been brought or pursued in bad faith; or
       ``(C) does not state on its face a valid basis for protest.
       ``(6) Payment of costs for frivolous protests.--(A) If the 
     Board concerned expressly finds that a protest or a portion 
     of a protest is frivolous or has been brought or pursued in 
     bad faith, the Board concerned shall declare that the 
     protester or other interested party who joins the protest is 
     liable to the United States for payment of the costs 
     described in subparagraph (B) unless--
       ``(i) special circumstances would make such payment unjust; 
     or
       ``(ii) the protester obtains documents or other information 
     after the protest is filed with the Board concerned that 
     establishes that the
      protest or a portion of the protest is frivolous or has been 
     brought or pursued in bad faith, and the protester then 
     promptly withdraws the protest or portion of the protest.
       ``(B) The costs referred to in subparagraph (A) are all of 
     the costs incurred by the United States of reviewing the 
     protest, or of reviewing that portion of the protest for 
     which the finding is made, including the fees and other 
     expenses (as defined in section 2412(d)(2)(A) of title 28, 
     United States Code) incurred by the United States in 
     defending the protest.
       ``(h) Decisions and Corrective Actions on Protests.--(1) In 
     making a decision on protests filed under this section, the 
     Board concerned shall accord due weight to the goals of 
     economic and efficient procurement, and shall take due 
     account of the rule of prejudicial error.
       ``(2) If the Board concerned determines that a decision of 
     the head of the executive agency is arbitrary or capricious 
     or violates a statute or regulation, the Board concerned may 
     order the agency (or its head) to take such corrective action 
     as the Board concerned considers appropriate. Corrective 
     action includes requiring that the executive agency--
       ``(A) refrain from exercising any of its options under the 
     contract;
       ``(B) recompete the contract immediately;
       ``(C) issue a new solicitation;
       ``(D) terminate the contract;

[[Page H 8907]]

       ``(E) award a contract consistent with the requirements of 
     such statute and regulation;
       ``(F) implement any combination of requirements under 
     subparagraphs (A), (B), (C), (D), and (E); or
       ``(G) implement such other actions as the Board concerned 
     determines necessary.
       ``(3) If the Board concerned orders corrective action after 
     the contract award, the affected contract shall be presumed 
     valid as to all goods or services delivered and accepted 
     under the contract before the corrective action was ordered.
       ``(4) Any agreement that provides for the dismissal of a 
     protest and involves a direct or indirect expenditure of 
     appropriated funds shall be submitted to the Board concerned 
     and shall be made a part of the public record (subject to any 
     protective order considered appropriate by the Board 
     concerned) before dismissal of the protest.
       ``(i) Authority to Declare Entitlement to Costs.--(1)(A) 
     Whenever the Board concerned determines that a decision of 
     the head of an executive agency is arbitrary or capricious or 
     violates a statute or regulation, it may, in accordance with 
     section 1304 of title 31, United States Code, further declare 
     an appropriate prevailing party to be entitled to the costs 
     of--
       ``(i) filing and pursuing the protest, including reasonable 
     attorneys' fees and consultant and expert witness fees, and
       ``(ii) bid and proposal preparation.
       ``(B) No party (other than a small business concern (within 
     the meaning of section 3(a) of the Small Business Act)) may 
     be declared entitled under this paragraph to costs for--
       ``(i) consultant and expert witness fees that exceed the 
     highest rate of compensation for expert witnesses paid by the 
     Federal Government, or
       ``(ii) attorneys' fees that exceed $150 per hour unless the 
     Board concerned, on a case by case basis, determines that an 
     increase in the cost of living or a special factor, such as 
     the limited availability of qualified attorneys for the 
     proceedings involved, justifies a higher fee.
       ``(2) Payment of amounts due from an agency under paragraph 
     (1) or under the terms of a settlement agreement under 
     subsection (h)(4) shall be made from the appropriation
      made by section 1304 of title 31, United States Code, for 
     the payment of judgments. The executive agency concerned 
     shall reimburse that appropriation account out of funds 
     available for the procurement.
       ``(j) Appeals.--A final decision of the Board concerned may 
     be appealed as set forth in section 8(g)(1) of the Contract 
     Disputes Act of 1978 by the head of the executive agency 
     concerned and by any interested party, including interested 
     parties who intervene in any protest filed under this 
     section.
       ``(k) Additional Relief.--Nothing contained in this section 
     shall affect the power of the Board concerned to order any 
     additional relief which it is authorized to provide under any 
     statute or regulation.
       ``(l) Nonexclusivity of Remedies.--Nothing contained in 
     this section shall affect the right of any interested party 
     to file a protest with the contracting agency or to file an 
     action in the United States Court of Federal Claims or in a 
     United States district court.''.

     SEC. 425. APPLICABILITY TO CERTAIN CONTRACTS.

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

     ``SEC. 215. APPLICABILITY TO CERTAIN CONTRACTS.

       ``(a) Contracts at or Below the Simplified Acquisition 
     Threshold.--Notwithstanding section 33 of this Act, the 
     authority conferred on the Defense Board and the Civilian 
     Board by this title is applicable to contracts in amounts not 
     greater than the simplified acquisition threshold.
       ``(b) Contracts for Commercial Items.--Notwithstanding 
     section 34 of this Act, the authority conferred on the 
     Defense Board and the Civilian Board by this title is 
     applicable to contracts for the procurement of commercial 
     items.''.

    Subtitle D--Repeal of Other Statutes Authorizing Administrative 
                                Protests

     SEC. 431. REPEALS.

       (a) GSBCA Provisions.--Subsection (f) of the Brooks 
     Automatic Data Processing Act (section 111 of the Federal 
     Property and Administrative Services Act of 1949; 40 U.S.C. 
     759) is repealed.
       (b) GAO Provisions.--(1) Subchapter V of chapter 35 of 
     title 31, United States Code (31 U.S.C. 3551-3556) is 
     repealed.
       (2) The analysis for chapter 35 of such title is amended by 
     striking out the items relating to sections 3551 through 3556 
     and the heading for subchapter V.

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

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

       (a) Transfers.--
       (1) Armed services and corps boards of contract appeals.--
     The personnel employed in connection with, and the assets, 
     liabilities, contracts, property, records, and unexpended 
     balance of appropriations, authorizations, allocations, and 
     other funds employed, held, used, arising from, available to, 
     or to be made available in connection with the functions 
     vested by law in the Armed Services Board of Contract Appeals 
     and the board of contract appeals of the Corps of Engineers 
     established pursuant to section 8 of the Contract Disputes 
     Act of 1978 (41 U.S.C. 607) (as in effect on the day before 
     the effective date described in section 451), shall be 
     transferred to the Department of Defense Board of Contract 
     Appeals for appropriate allocation by the Chairman of that 
     Board.
       (2) Other boards of contracts appeals.--The personnel 
     employed in connection with, and the assets, liabilities, 
     contracts, property, records, and
      unexpended balance of appropriations, authorizations, 
     allocations, and other funds employed, held, used, arising 
     from, available to, or to be made available in connection 
     with the functions vested by law in the boards of contract 
     appeals established pursuant to section 8 of the Contract 
     Disputes Act of 1978 (41 U.S.C. 607) (as in effect on the 
     day before the effective date described in section 451) 
     other than the Armed Services Board of Contract Appeals, 
     the board of contract appeals of the Corps of Engineers, 
     and the Postal Service Board of Contract Appeals shall be 
     transferred to the Civilian Board of Contract Appeals for 
     appropriate allocation by the Chairman of that Board.
       (3) Comptroller general.--(A) One-quarter (as determined by 
     the Comptroller General) of the personnel employed in 
     connection with, and one-quarter (as determined by the 
     Comptroller General) of the assets, liabilities, contracts, 
     property, records, and unexpended balance of appropriations, 
     authorizations, allocations, and other funds employed, held, 
     used, arising from, available to, or to be made available in 
     connection with the functions vested by law in the 
     Comptroller General pursuant to subchapter V of chapter 35 of 
     title 31, United States Code (as in effect on the day before 
     the effective date described in section 451), shall be 
     transferred to the Civilian Board of Contract Appeals for 
     appropriate allocation by the Chairman of that Board.
       (B) Three-quarters (as determined by the Comptroller 
     General) of the personnel employed in connection with, and 
     three-quarters (as determined by the Comptroller General) of 
     the assets, liabilities, contracts, property, records, and 
     unexpended balance of appropriations, authorizations, 
     allocations, and other funds employed, held, used, arising 
     from, available to, or to be made available in connection 
     with the functions vested by law in the Comptroller General 
     pursuant to subchapter V of chapter 35 of title 31, United 
     States Code (as in effect on the day before the effective 
     date described in section 451), shall be transferred to the 
     Department of Defense Board of Contract Appeals for 
     appropriate allocation by the Chairman of that Board.
       (b) Effect on Personnel.--Personnel transferred pursuant to 
     this subtitle shall not be separated or reduced in 
     compensation for one year after such transfer, except for 
     cause.
       (c) Regulations.--(1) The Department of Defense Board of 
     Contract Appeals and the Civilian Board of Contract Appeals 
     shall each prescribe regulations for the release of competing 
     employees in a reduction in force that gives due effect to--
       (A) efficiency or performance ratings;
       (B) military preference; and
       (C) tenure of employment.
       (2) In prescribing the regulations, the Board concerned 
     shall provide for military preference in the same manner as 
     set forth in subchapter I of chapter 35 of title 5, United 
     States Code.

     SEC. 442. TERMINATIONS AND SAVINGS PROVISIONS.

       (a) Termination of Boards of Contract Appeals.--Effective 
     on the effective date described in section 451, the boards of 
     contract appeals established pursuant to section 8 of the 
     Contract Disputes Act of 1978 (41 U.S.C. 607) (as in effect 
     on the day before such effective date) other than the Postal 
     Service Board of Contract Appeals shall terminate.
       (b) Savings Provision for Contract Dispute Matters Pending 
     Before Boards.--(1) This title and the amendments made by 
     this title shall not affect any proceedings (other than bid 
     protests pending before the board of contract appeals of the 
     General Services Administration) pending on the effective 
     date described in section
      451 before any board of contract appeals terminated by 
     subsection (a).
       (2) In the case of any such proceedings pending before the 
     Armed Services Board of Contract Appeals or the board of 
     contract appeals of the Corps of Engineers, the proceedings 
     shall be continued by the Department of Defense Board of 
     Contract Appeals, and orders which were issued in any such 
     proceeding by the Armed Services Board of Contract Appeals or 
     the board of contract appeals of the Corps of Engineers shall 
     continue in effect until modified, terminated, superseded, or 
     revoked by the Department of Defense Board of Contract 
     Appeals, by a court of competent jurisdiction, or by 
     operation of law.
       (3) In the case of any such proceedings pending before an 
     agency board of contract appeals other than the Armed 
     Services Board of Contract Appeals or the board of contract 
     appeals of the Corps of Engineers, the proceedings shall be 
     continued by the Civilian Board of Contract Appeals, and 
     orders which were issued in any such proceeding by the agency 
     board shall continue in effect until modified, terminated, 
     superseded, or revoked by the Civilian Board of Contract 
     Appeals, by a court of competent jurisdiction, or by 
     operation of law.
       (c) Bid Protest Transition Provisions.--(1) No protest may 
     be submitted to the Comptroller General pursuant to section 
     3553(a) of title 31, United States Code, or to the board of 
     contract appeals for the General 

[[Page H 8908]]
     Services Administration pursuant to the Brooks Automatic Data 
     Processing Act (40 U.S.C. 759) on or after the effective date 
     described in section 451.
       (2)(A) In the case of bid protest proceedings pending 
     before the board of contract appeals of the General Services 
     Administration on the effective date described in section 
     451--
       (i) with respect to bid protests involving procurements of 
     the Department of Defense, the Department of the Army, the 
     Department of the Navy, and the Department of the Air Force, 
     the proceedings shall be continued by the Defense Board of 
     Contract Appeals; and
       (ii) with respect to bid protests involving procurements of 
     any other executive agency (as defined by section 4(1) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 403(1)), 
     the proceedings shall be continued by the Civilian Board of 
     Contract Appeals.
       (B) The provisions repealed by section 431(a) shall 
     continue to apply to such proceedings until the Department of 
     Defense Board of Contract Appeals or the Civilian Board of 
     Contract Appeals, as the case may be, determines such 
     proceedings have been completed.
       (3)(A) In the case of bid protest proceedings pending 
     before the Comptroller General on the effective date 
     described in section 451--
       (i) with respect to bid protests involving procurements of 
     the Department of Defense, the Department of the Army, the 
     Department of the Navy, and the Department of the Air Force, 
     the proceedings shall be continued by the Defense Board of 
     Contract Appeals;
       (ii) with respect to bid protests involving procurements of 
     any other executive agency (as defined by section 4(1) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 403(1)), 
     the proceedings shall be continued by the Civilian Board of 
     Contract Appeals; and
       (iii) with respect to bid protests involving procurements 
     of an entity that is not an executive agency, the proceedings 
     shall be continued by the Comptroller General.
       (B) The provisions repealed by section 431(b) shall 
     continue to apply to such bid protest proceedings until the 
     Department of Defense Board of Contract Appeals, the Civilian 
     Board of Contract Appeals, or the Comptroller
      General, as the case may be, determines that such 
     proceedings have been completed.

     SEC. 443. CONTRACT DISPUTES AUTHORITY OF BOARDS.

       (a) Section 2 of the Contract Disputes Act of 1978 (41 
     U.S.C. 601) is amended--
       (1) in paragraph (2), by striking out ``, the United States 
     Postal Service, and the Postal Rate Commission'';
       (2) by amending paragraph (6) to read as follows:
       ``(6) the term `Defense Board' means the Department of 
     Defense Board of Contract Appeals established under section 
     8(a) of this Act;'';
       (3) by redesignating paragraph (7) as paragraph (8); and
       (4) by inserting after paragraph (6) the following new 
     paragraph (7):
       ``(7) the term `Civilian Board' means the Civilian Board of 
     Contract Appeals established under section 8(b) of this Act; 
     and''.
       (b) Section 6(c)(6) of the Contract Disputes Act of 1978 
     (41 U.S.C. 605(c)(6)) is amended--
       (1) by striking out ``court or an agency board of contract 
     appeals'' and inserting in lieu thereof ``court, the Defense 
     Board, or the Civilian Board'';
       (2) by striking out ``an agency board of contract appeals'' 
     in the third sentence and inserting in lieu thereof ``the 
     Defense Board or the Civilian Board''; and
       (3) by striking out ``agency board'' and inserting in lieu 
     thereof ``the Board concerned''.
       (c) Section 7 of the Contract Disputes Act of 1978 (41 
     U.S.C. 606) is amended by striking out ``an agency board of 
     contract appeals'' and inserting in lieu thereof ``the 
     Defense Board or the Civilian Board''.
       (d) Section 8 of the Contract Disputes Act of 1978 (41 
     U.S.C. 607), as amended by section 411, is further amended--
       (1) by amending the heading to read as follows:


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

       (2) by striking out subsection (c);
       (3) in subsection (d)--
       (A) by striking out the first sentence and inserting in 
     lieu thereof the following:

     ``The Defense Board shall have jurisdiction to decide any 
     appeal from a decision of a contracting officer of the 
     Department of Defense, the Department of the Army, the 
     Department of the Navy, or the Department of the Air Force 
     relative to a contract made by that department. The Civilian 
     Board shall have jurisdiction to decide any appeal from a 
     decision of a contracting officer of any executive agency 
     (other than the Department of Defense, the Department of the 
     Army, the Department of the Navy, the Department of the Air 
     Force, the United States Postal Service, or the Postal Rate 
     Commission) relative to a contract made by that agency.''; 
     and
       (B) in the second sentence, by striking out ``the agency 
     board'' and inserting in lieu thereof ``the Board 
     concerned'';
       (4) in subsection (e), by striking out ``An agency board 
     shall provide'' and inserting in lieu thereof ``The Defense 
     Board and the Civilian Board shall each provide,'';
       (5) in subsection (f), by striking out ``each agency 
     board'' and inserting in lieu thereof ``the Defense Board and 
     the Civilian Board'';
       (6) in subsection (g)--
       (A) in the first sentence of paragraph (1), by striking out 
     ``an agency board of contract appeals'' and inserting in lieu 
     thereof ``the Defense Board or the Civilian Board, as the 
     case may be,'';
       (B) by striking out paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2); and
       (7) by striking out subsection (h) and inserting in lieu 
     thereof the following:
       ``(h) There is established an agency board of contract 
     appeals to be known as the `Postal Service Board of Contract 
     Appeals'. Such board shall have jurisdiction to decide any 
     appeal from a decision of a contracting officer of the United 
     States Postal Service or the Postal Rate Commission relative 
     to a contract made by either agency. Such board shall consist 
     of judges appointed by the Postmaster General who shall meet 
     the qualifications of and serve in the same manner as judges 
     of the Civilian Board of Contract Appeals. This Act and title 
     II of the Office of Federal Procurement Policy Act shall 
     apply to contract disputes before the Postal Service Board of 
     Contract Appeals in the same manner as they apply to contract 
     disputes before the Civilian Board.''; and
       (8) by striking out subsection (i).
       (e) Section 9 of the Contract Disputes Act of 1978 (41 
     U.S.C. 608) is amended--
       (1) in subsection (a), by striking out ``each agency 
     board'' and inserting in lieu thereof ``the Defense Board and 
     the Civilian Board''; and
       (2) in subsection (b), by striking out ``the agency board'' 
     and inserting in lieu thereof ``the Board concerned''.
       (f) Section 10 of the Contract Disputes Act of 1978 (41 
     U.S.C. 609) is amended--
       (1) in subsection (a)--
       (A) in the first sentence of paragraph (1)--
       (i) by striking out ``Except as provided in paragraph (2), 
     and in'' and inserting in lieu thereof ``In''; and
       (ii) by striking out ``an agency board'' and inserting in 
     lieu thereof ``the Defense Board or the Civilian Board'';
       (B) by striking out paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2), and in 
     that paragraph by striking out ``or (2)'';
       (2) in subsection (b)--
       (A) by striking out ``any agency board'' and inserting in 
     lieu thereof ``the Defense Board or the Civilian Board''; and
       (B) by striking out ``the agency board'' and inserting in 
     lieu thereof ``the Board concerned'';
       (3) in subsection (c)--
       (A) by striking out ``an agency board'' and inserting in 
     lieu of each ``the Defense Board or the Civilian Board''; and
       (B) by striking out ``the agency board'' and inserting in 
     lieu thereof ``the Board concerned''; and
       (4) in subsection (d)--
       (A) by striking out ``one or more agency boards'' and 
     inserting in lieu thereof ``the Defense Board or the Civilian 
     Board (or both)''; and
       (B) by striking out ``or among the agency boards involved'' 
     and inserting in lieu thereof ``one or both of the Boards''.
       (g) Section 11 of the Contract Disputes Act of 1978 (41 
     U.S.C. 610) is amended--
       (1) in the first sentence, by striking out ``an agency 
     board of contract appeals'' and inserting in lieu thereof 
     ``the Defense Board or the Civilian Board''; and
       (2) in the second sentence, by striking out ``the agency 
     board through the Attorney General; or upon application by 
     the board of contract appeals of the Tennessee Valley 
     Authority'' and inserting in lieu thereof ``the Defense Board 
     or the Civilian Board''.
       (h) Section 13 of the Contract Disputes Act of 1978 (41 
     U.S.C. 612) is amended--
       (1) in subsection (b), by striking out ``an agency board of 
     contract appeals'' and inserting in lieu thereof ``the 
     Defense Board or the Civilian Board''; and
       (2) in subsection (d)(2), by striking out ``by the board of 
     contract appeals for'' and inserting in lieu thereof ``by the 
     Defense Board or the Civilian Board from''.

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

       (a) Defense Board.--Any reference to the Armed Services 
     Board of Contract Appeals or the board of contract appeals of 
     the Corps of Engineers in any provision of law or in any 
     rule, regulation, or other paper of the United States shall 
     be treated as referring to the Department of Defense Board of 
     Contract Appeals.
       (b) Civilian Board.--Any reference to an agency board of 
     contract appeals other than the Armed Services Board of 
     Contract Appeals, the board of contract appeals of the Corps 
     of Engineers, or the Postal Service Board of Contract Appeals 
     in any provision of law or in any rule, regulation, or other 
     paper of the United States shall be treated as referring to 
     the Civilian Board of Contract Appeals.

     SEC. 445. CONFORMING AMENDMENTS.

       (a) Title 5.--Section 5372a of title 5, United States Code, 
     is amended--
       (1) in subsection (a)(1), by striking out ``an agency board 
     of contract appeals appointed under section 8 of the Contract 
     Disputes Act of 1978'' and inserting in lieu thereof ``the 
     Department of Defense Board of Contract Appeals or the 
     Civilian Board of Contract Appeals appointed under section 
     202 of the Office of Federal Procurement Policy Act or the 
     Postal Service Board of Contract Appeals appointed under 
     section 8(h) of the Contract Disputes Act of 1978''; and
       (2) in subsection (a)(2), by striking out ``an agency board 
     of contract appeals'' and inserting in lieu thereof ``the 
     Department of 

[[Page H 8909]]
     Defense Board of Contract Appeals, the Civilian Board of Contract 
     Appeals, or the Postal Service Board of Contract Appeals''.
       (b) Title 10.--(1) Section 2305(e) of title 10, United 
     States Code, is amended--
       (A) in paragraph (1), by striking out ``subchapter V of 
     chapter 35 of title 31'' and inserting in lieu thereof 
     ``title II of the Office of Federal Procurement Policy Act''; 
     and
       (B) by striking out paragraph (3).
       (2) Section 2305(f) of such title is amended--
       (A) in paragraph (1), by striking out ``subparagraphs (A) 
     through (F) of subsection (b)(1) of section 3554 of title 
     31'' and inserting in lieu thereof ``section 214(h)(2) of the 
     Office of Federal Procurement Policy Act''; and
       (B) in paragraph (2), by striking out ``paragraph (1) of 
     section 3554(c) of title 31 within the limits referred to in 
     paragraph (2)'' and inserting in lieu thereof ``subparagraph 
     (A) of section 214(i)(1) of the Office of Federal Procurement 
     Policy Act within the limits referred to in subparagraph 
     (B)''.
       (c) Federal Property and Administrative Services Act of 
     1949.--(1) Section 303B(j) (as redesignated by section 
     104(b)(2)) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253b(h)) is amended--
       (A) in paragraph (1), by striking out ``subchapter V of 
     chapter 35 of title 31, United States Code'' and inserting in 
     lieu thereof ``title II of the Office of Federal Procurement 
     Policy Act''; and
       (B) by striking out paragraph (3).
       (2) Section 303B(k) (as redesignated by section 104(b)(2)) 
     of such Act (41 U.S.C. 253b(i)) is amended--
       (A) in paragraph (1), by striking out ``in subparagraphs 
     (A) through (F) of subsection (b)(1) of section 3554 of title 
     31, United States Code'' and inserting in lieu thereof 
     ``section 214(h)(2) of the Office of Federal Procurement 
     Policy Act''; and
       (B) in paragraph (2), by striking out ``paragraph (1) of 
     section 3554(c) of such title within the limits referred to 
     in paragraph (2)'' and inserting in lieu thereof 
     ``subparagraph (A) of section 214(i)(1) of the Office of 
     Federal Procurement Policy Act within the limits referred to 
     in subparagraph (B)''.
       (d) Office of Federal Procurement Policy Act.--The table of 
     contents for the Office of Federal Procurement Policy Act 
     (contained in section 1(b)) is amended--
       (1) by inserting the following before the item relating to 
     section 1:
         ``TITLE I--FEDERAL PROCUREMENT POLICY GENERALLY''; and
       (2) by adding at the end the following:
                     ``TITLE II--DISPUTE RESOLUTION

                    ``Subtitle A--General Provisions

``Sec. 201. Definitions.
``Sec. 202. Membership.
``Sec. 203. Chairman.
``Sec. 204. Rulemaking authority.
``Sec. 205. Authorization of appropriations.

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

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

     SEC. 451. EFFECTIVE DATE.

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

     SEC. 452. REGULATIONS.

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

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

       Notwithstanding section 451, not later than 1 year after 
     the date of the enactment of this Act--
       (1) the Secretary of Defense shall appoint the Chairman of 
     the Department of Defense Board of Contract Appeals; and
       (2) the Administrator of General Services shall appoint the 
     Chairman of the Civilian Board of Contract Appeals.
       (2) Page 12, lines 2 and 23, strike out ``chapter'' and 
     insert in lieu thereof ``title''.
       (3) Page 26, line 18, strike out ``and'' and insert in lieu 
     thereof ``but''.
       (4) Page 28, line 14, strike out ``and'' and insert in lieu 
     thereof ``but''.
       (5) Add at the end of section 302 (at the end of page 51) 
     the following:
       (c) Policy of Congress.--Section 29 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 425) is further 
     amended by adding after subsection (a) the following new 
     subsection:
       ``(b) Construction of Certification Requirements.--A 
     provision of law may not be construed as requiring a 
     certification by a contractor or offeror in a procurement 
     made or to be made by the Federal Government unless that 
     provision of law specifically refers to this subsection and 
     provides that, notwithstanding this subsection, such a 
     certification shall be required.
       Page 50, line 18, strike out ``(b)'' and insert in lieu 
     thereof ``(c)''.
       (6) Page 52, line 10, strike out ``August 1, 1995'' and 
     insert in lieu thereof ``October 1, 1996''.
       Page 52, lines 10 and 11, strike out ``August 1, 2000'' and 
     insert in lieu thereof ``October 1, 2000''.
       (7) Add at the end of section 306 (at the end of page 65) 
     the following new subsection:
       (e) Repeal of Data Collection Requirement.--Subsection (h) 
     of section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759) is repealed.
       (8) Strike out section 316 (page 75, line 15, through the 
     end of page 81) and insert in lieu thereof the following:

     SEC. 316. ADDITIONAL DEPARTMENT OF DEFENSE PILOT PROGRAMS.

       (a) Authority To Conduct Defense Facility-Wide Pilot 
     Program.--The Secretary of Defense may conduct a pilot 
     program, to be known as the ``defense facility-wide pilot 
     program'', for the purpose of determining the potential for 
     increasing the efficiency and effectiveness of the 
     acquisition process in facilities.
       (b) Scope of Program.--At a facility designated as a 
     participant in the pilot program, the pilot program shall 
     consist of the following:
       (1) All contracts and subcontracts for defense supplies and 
     services that are performed at the facility.
       (2) All contracts and subcontracts performed elsewhere that 
     the Secretary determines are directly and substantially 
     related to the production of defense supplies and services at 
     the facility and are necessary for the pilot program.
       (c) Designation of Participating Facilities.--(1) The 
     Secretary may designate up to two facilities as participants 
     in the defense facility-wide pilot program.
       (2) Subject to subsection (g), the Secretary may determine 
     the scope and duration of a designation made under this 
     paragraph.
       (d) Criteria for Designation.--(1) Not later than 90 days 
     after the date of the enactment of this Act, the Secretary 
     shall provide to the congressional defense committees a 
     detailed description of the proposed criteria to be used in 
     selecting facilities for designation as participants in the 
     defense facility-wide pilot program. The Secretary may not 
     select any facilities for participation in the
      program until at least 30 days have passed after providing 
     such criteria.
       (2) After selecting both facilities for designation as 
     participants in the program, the Secretary shall notify the 
     congressional defense committees of the selection and submit 
     a description--
       (A) of the management goals and objectives intended to be 
     achieved for each facility selected; and
       (B) of the method by which the Secretary intends to monitor 
     and measure the performance of the selected facilities in 
     meeting such management goals and objectives.
       (3)(A) In developing the criteria referred to paragraph 
     (1), the Secretary shall ensure that such criteria reflect 
     the following objectives:
       (i) A significant reduction of the cost to the Government 
     for programs carried out at the designated facilities.
       (ii) A reduction of the schedule associated with programs 
     carried out at the designated facilities.
       (iii) An increased used of commercial practices and 
     procedures for programs carried at the designated facilities.
       (iv) That the designation of a facility under subsection 
     (c) does not place a competing domestic manufacturer at a 
     significant competitive disadvantage.
       (B) The criteria shall also require that, with respect to 
     any facility designated under subsection (c), all or 
     substantially all of the contracts to be awarded and 
     performed at the facility after the designation, and all or 
     substantially all of the subcontracts to be awarded under 
     those contracts and performed at the facility after the 
     designation, will be--
       (i) for the production of supplies or services on a firm-
     fixed price basis;
       (ii) awarded without requiring the contractors or 
     subcontractors to provide certified cost or pricing data 
     pursuant to section 2306a of title 10, United States Code; 
     and
       (iii) awarded and administered without the application of 
     cost accounting standards under section 26(f) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 422(f)).
       (e) Exemption From Certain Requirements.--In the case of a 
     contract or subcontract that is to be performed at a facility 


[[Page H 8910]]
     designated for participation in the defense facility-wide pilot program 
     and that is subject to section 2306a of title 10, United 
     States Code, or section 26(f) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 422(f)), the Secretary of 
     Defense may exempt such contract or subcontract from the 
     requirement to obtain certified cost or pricing data under 
     such section 2306a or the requirement to apply mandatory cost 
     accounting standards under such section 26(f) if the 
     Secretary determines that the contract or subcontract--
       (1) is within the scope of the pilot program (as described 
     in subsection (b)); and
       (2) is fairly and reasonably priced based on information 
     other than certified cost and pricing data.
       (f) Special Authority.--The authority provided under 
     subsection (a) may include authority for the Secretary of 
     Defense--
       (1) to apply any amendment or repeal of a provision of law 
     made in this Act to the pilot program before the effective 
     date of such amendment or repeal; and
       (2) to apply to a procurement of items other than 
     commercial items under such program--
       (A) any authority provided in the Federal Acquisition 
     Streamlining Act of 1994 (Public Law 103-355) (or in an 
     amendment made by a provision of that Act) to waive a 
     provision of law in the case of commercial items, and
       (B) any exception applicable under this Act or the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355) (or 
     an amendment made by a provision of either Act) in the case 
     of commercial items,

     before the effective date of such provision (or amendment) to 
     the extent that the Secretary determines necessary to test 
     the application of such waiver or exception to procurements 
     of items other than commercial items.
       (g) Applicability.--(1) Subsections (e) and (f) apply with 
     respect to--
       (A) a contract that is awarded or modified during the 
     period described in paragraph (2); and
       (B) a contract that is awarded before the beginning of such 
     period and is to be performed (or may be performed), in whole 
     or in part, during such period.
       (2) The period referred to in paragraph (1) is the period 
     that begins 45 days after the date of the enactment of this 
     Act and ends on September 30, 1998.
       (h) Commercial Practices Encouraged.--With respect to 
     contracts and subcontracts within the scope of the defense 
     facility-wide pilot program, the Secretary of Defense may, to 
     the extent the Secretary determines appropriate and in 
     accordance with the law, adopt commercial practices in the 
     administration of contracts and subcontracts. Such commercial 
     practices may include elimination of Government audit and 
     access to records provisions; incorporation of commercial 
     oversight, inspection, and acceptance procedures; use of 
     alternative dispute resolution techniques (including 
     arbitration); and elimination of contract provisions 
     authorizing the Government to make unilateral changes to 
     contracts.
       (9) In sections 501 and 502 (page 143, line 23, through the 
     end of page 146), strike out ``title'' each place it appears 
     and insert in lieu thereof ``Act''.