[Congressional Record Volume 162, Number 84 (Thursday, May 26, 2016)]
[Senate]
[Pages S3355-S3357]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4365. Mr. CARPER submitted an amendment intended to be proposed by
him to the bill S. 2943, to authorize appropriations for fiscal year
2017 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
Strike section 812 and insert the following:
SEC. 812. MICRO-PURCHASE THRESHOLD APPLICABLE TO GOVERNMENT
PROCUREMENTS.
(a) Increase in Threshold.--Section 1902 of title 41,
United States Code, is amended--
(1) in subsection (a), by striking ``$3,000'' and inserting
``$10,000''; and
(2) in subsections (d) and (e), by striking ``not greater
than $3,000'' and inserting ``with a price not greater than
the micro-purchase threshold''.
(b) OMB Guidance.--The Director of the Office of Management
and Budget shall update the guidance in Circular A-123,
Appendix B, as appropriate, to ensure that agencies--
(1) follow sound acquisition practices when making
purchases using the Government purchase card; and
(2) maintain internal controls that reduce the risk of
fraud, waste, and abuse in Government charge card programs.
(c) Convenience Checks.--A convenience check may not be
used for an amount in excess of one half of the micro-
purchase threshold under section 1902(a) of title 41, United
States Code, or a lower amount set
[[Page S3356]]
by the head of the agency, and use of convenience checks
shall comply with controls prescribed in OMB Circular A-123,
Appendix B.
At the end of subtitle B of title VIII, add the following:
SEC. 829K. SIMPLIFICATION OF THE PROCESS FOR PREPARATION AND
EVALUATION OF PROPOSALS FOR CERTAIN SERVICE
CONTRACTS.
(a) Contracting Under Title 41, United States Code.--
Section 3306(c) of title 41, United States Code, is amended--
(1) in paragraph (1), by inserting ``except as provided in
paragraph (3),'' in subparagraphs (B) and (C) after the
subparagraph designation; and
(2) by adding at the end the following new paragraphs:
``(3) Exceptions for certain indefinite delivery,
indefinite quantity multiple-award contracts and certain
federal supply schedule contracts.--If the head of an agency
issues a solicitation for multiple task or delivery order
contracts under section 4103 of this title, or a Federal
supply schedule contract under section 501(b) of title 40 and
section 152(3) of this title, for the same or similar
services and intends to make a contract award to each
qualifying offeror--
``(A) cost or price to the Federal Government need not, at
the Government's discretion, be considered under subparagraph
(B) of paragraph (1) as an evaluation factor for the contract
award; and
``(B) if, pursuant to subparagraph (A), cost or price to
the Federal Government is not considered as an evaluation
factor for the contract award--
``(i) the disclosure requirement of subparagraph (C) of
paragraph (1) shall not apply; and
``(ii) cost or price to the Federal Government shall be
considered in conjunction with the issuance of a task or
delivery order under any contract resulting from the
solicitation that is awarded pursuant to section 501(b) of
title 40 and section 152(3) of this title.
``(4) Qualifying offeror defined.--In paragraph (3), the
term `qualifying offeror' means an offeror that--
``(A) is determined to be a responsible source;
``(B) submits a proposal that conforms to the requirements
of the solicitation; and
``(C) the contracting officer has no reason to believe
would likely offer other than fair and reasonable pricing.''.
(b) Contracting Under Title 10, United States Code.--
Section 2305(a)(3) of title 10, United States Code, is
amended--
(1) in subparagraph (A), by inserting ``(except as provided
in subparagraph (C))'' in clauses (ii) and (iii) after
``shall''; and
(2) by adding at the end the following new subparagraphs:
``(C) If the head of an agency issues a solicitation for
multiple task or delivery order contracts under section
2304a(d)(1)(B) of this title for the same or similar services
and intends to make a contract award to each qualifying
offeror--
``(i) cost or price to the Federal Government need not, at
the Government's discretion, be considered under clause (ii)
of subparagraph (A) as an evaluation factor for the contract
award; and
``(ii) if, pursuant to clause (i), cost or price to the
Federal Government is not considered as an evaluation factor
for the contract award--
``(I) the disclosure requirement of clause (iii) of
subparagraph (A) shall not apply; and
``(II) cost or price to the Federal Government shall be
considered in conjunction with the issuance pursuant to
section 2304c(b) of this title of a task or delivery order
under any contract resulting from the solicitation.
``(D) In subparagraph (C), the term `qualifying offeror'
means an offeror that--
``(i) is determined to be a responsible source;
``(ii) submits a proposal that conforms to the requirements
of the solicitation; and
``(iii) the contracting officer has no reason to believe
would likely offer other than fair and reasonable pricing.''.
SEC. 829L. PILOT PROGRAMS FOR AUTHORITY TO ACQUIRE INNOVATIVE
COMMERCIAL ITEMS USING GENERAL SOLICITATION
COMPETITIVE PROCEDURES.
(a) Authority.--
(1) In general.--The head of an agency may carry out a
pilot program, to be known as a ``commercial solutions
opening pilot program'', under which innovative commercial
items may be acquired through a competitive selection of
proposals resulting from a general solicitation and the peer
review of such proposals.
(2) Head of an agency.--In this section, the term ``head of
an agency'' means the following:
(A) The Secretary of Defense.
(B) The Secretary of Homeland Security.
(C) The Administrator of General Services.
(3) Applicability of section.--This section applies to the
following agencies:
(A) The Department of Defense.
(B) The Department of Homeland Security.
(C) The General Services Administration.
(b) Treatment as Competitive Procedures.--Use of general
solicitation competitive procedures for the pilot program
under subsection (a) shall be considered--
(1) in the case of the Department of Defense, to be use of
competitive procedures for purposes of chapter 137 of title
10, United States Code; and
(2) in the case of the Department of Homeland Security and
the General Services Administration, to be use of competitive
procedures for purposes division C of title 41, United States
Code (as defined in section 152 of such title).
(c) Limitation.--The head of an agency may not enter into a
contract under the pilot program for an amount in excess of
$10,000,000.
(d) Guidance.--The head of an agency shall issue guidance
for the implementation of the pilot program under this
section within that agency. Such guidance shall be issued in
consultation with the Office of Management and Budget and
shall be posted for access by the public.
(e) Report Required.--
(1) In general.--Not later than three years after the date
of the enactment of this Act, the head of an agency shall
submit to the congressional committees specified in paragraph
(3) a report on the activities the agency carried out under
the pilot program.
(2) Elements of report.--Each report under this subsection
shall include the following:
(A) An assessment of the impact of the pilot program on
competition.
(B) In the case of the Department of Defense, an assessment
of the ability under the pilot program to attract proposals
from nontraditional defense contractors (as defined in
section 2302(9) of title 10, United States Code).
(C) A comparison of acquisition timelines for--
(i) procurements made using the pilot program; and
(ii) procurements made using other competitive procedures
that do not use general solicitations.
(D) A recommendation on whether the authority for the pilot
program should be made permanent.
(3) The congressional committees specified in this
paragraph are the following:
(A) With respect to the Department of Defense, the
Committee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives.
(B) With respect to the Department of Homeland Security and
the General Services Administration, the Committee on
Homeland Security and Governmental Affairs of the Senate and
the Committee on Oversight and Government Reform of the House
of Representatives.
(f) Definition.--In this section, the term ``innovative''
means--
(1) any new technology, process, or method, including
research and development; or
(2) any new application of an existing technology, process,
or method.
(g) Termination.--The authority to enter into a contract
under a pilot program under this section terminates on
September 30, 2022.
SEC. 829M. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD.
Section 134 of title 41, United States Code, is amended by
striking ``$100,000'' and inserting ``$500,000''.
SEC. 829N. CATEGORY MANAGEMENT.
(a) Guidance.--The Office of Management and Budget shall
issue guidance to support the implementation of category
management by executive agencies. The guidance shall address,
at a minimum, the following:
(1) Principles and practices for--
(A) addressing common agency needs for goods and services
through the use of data analytics, application of best-in-
class practices, and an understanding of market and agency
cost drivers and other relevant considerations;
(B) reducing duplication of contract vehicles for the same
or similar requirements;
(C) collecting and interagency sharing of pricing data,
contract terms and conditions, and other information as
appropriate;
(D) strengthening demand management practices; and
(E) meeting other policy objectives achieved through
Federal contracting, including--
(i) ensuring that small businesses, qualified HUBZone small
business concerns, small businesses owned and controlled by
socially and economically disadvantaged individuals, service-
disabled veteran-owned small businesses, and small businesses
owned and controlled by women are provided with the maximum
practicable opportunities, as available to other potential
contractors, to participate in Federal acquisitions; and
(ii) strengthening sustainability and accessibility
requirements in Federal acquisitions.
(2) The roles and responsibilities of the Office of
Management and Budget, the General Services Administration,
and other agencies, as appropriate, in furthering category
management principles and practices.
(3) Metrics for measuring results achieved through
application of category management principles and practices.
(b) Responsibilities of Agency Chief Acquisition
Officers.--Section 1702(b)(3) of title 41, United States
Code, is amended--
(1) by redesignating subparagraphs (D), (E), (F), and (G)
as subparagraphs (E), (F), (G), and (H), respectively; and
(2) by inserting after subparagraph (C) the following new
subparagraph (D):
``(D) establishing and overseeing a category management
program for the agency's spend in consultation with the
agency Chief Information Officer, the agency Chief Financial
Officer, and other agency officials, as appropriate;''.
[[Page S3357]]
SEC. 829O. INNOVATION SET ASIDE PILOT PROGRAM.
(a) In General.--The Director of the Office of Management
and Budget may, in consultation with the Administrator of the
Small Business Administration, conduct a pilot program to
increase the participation of new, innovative entities in
Federal contracting through the use of innovation set-asides.
(b) Authority.--(1) Notwithstanding the competition
requirements in chapter 33 of title 41, United States Code,
and the set-aside requirements in section 15 of the Small
Business Act (15 U.S.C. 644), a Federal agency, with the
concurrence of the Director, may set aside a contract award
to one or more new entrant contractors. The Director shall
consult with the Administrator prior to providing
concurrence.
(2) Notwithstanding any law addressing compliance
requirements for Federal contracts--
(A) except as provided in subparagraph (B), a contract
award to a new entrant contractor under the pilot program
shall be subject to the same relief afforded under section
1905 of title 41, United States Code, to contracts the value
of which is not greater than the simplified acquisition
threshold; and
(B) for up to five pilots, the Director may authorize an
agency to make an award to a new entrant contractor subject
to the same compliance requirements that apply to a
contractor receiving an award from the Secretary of Defense
under section 2371 of title 10 United States Code.
(c) Conditions for Use.--The authority provided in
subsection (b) may be used under the following conditions:
(1)(A) The agency has a requirement for new methods,
processes, or technologies, which may include research and
development, or new applications of existing methods,
processes or technologies, to improve quality, reduce costs,
or both; or
(B) Based on market research, the agency has determined
that the requirement cannot be easily provided through an
existing Federal contract;
(2) The agency intends either to make an award to a small
business concern or to give special consideration to a small
business concern before making an award to other than a small
business; and
(3) The length of the resulting contract will not exceed 2
years.
(d) Number of Pilots.--The Director may authorize the use
of up to 25 innovation set-asides acquisitions.
(e) Award Amount.--
(1) Except as provided in paragraph (2), the amount of an
award under the pilot program under this section may not
exceed $2,000,000 (including any options).
(2) The Director may authorize not more than 5 set-asides
with an award amount greater than $2,000,000 but not greater
than $5,000,000 (including any options).
(f) Guidance and Reporting.--
(1) The Director shall issue guidance, as necessary, to
implement the pilot program under this section.
(2) Within 3 years after the date of the enactment of this
Act, the Director, in consultation with the Administrator
shall submit to Congress a report on the pilot program under
this section. The report shall include the following:
(A) The number of awards (or orders under the Schedule)
made under the authority of this section.
(B) For each award (or order)--
(i) the agency that made the award (or order);
(ii) the amount of the award (or order); and
(iii) a brief description of the award (or order),
including the nature of the requirement and the innovation
produced from the award (or expected if contract performance
is not completed).
(g) Sunset.--The authority to award an innovation set-aside
under this section shall terminate on December 31, 2020.
(h) Definition.--For purposes of this section, the term
``new entrant contractor'', with respect to any contract
under the program, means an entity that has not been awarded
a Federal contract within the 5-year period ending on the
date on which a solicitation for that contract is issued
under the program.
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