[Congressional Record (Bound Edition), Volume 155 (2009), Part 9]
[House]
[Pages 11767-11826]
[From the U.S. Government Publishing Office, www.gpo.gov]




               PUBLIC CONTRACT LAW TECHNICAL CORRECTIONS

  Mr. COHEN. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 1107) to enact certain laws relating to public contracts as title 
41, United States Code, ``Public Contracts''.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1107

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

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

     SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT.

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

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

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

                       TITLE 41--PUBLIC CONTRACTS

Subtitle                                                       Sec.

      I. FEDERAL PROCUREMENT POLICY...........................      101
     II. OTHER ADVERTISING AND CONTRACT PROVISIONS............     6101
    III. CONTRACT DISPUTES....................................     7101
     IV. MISCELLANEOUS........................................     8101

                 Subtitle I--Federal Procurement Policy

                          Division A--General

Chapter                                                        Sec.

      1. Definitions..........................................      101

            Division B--Office of Federal Procurement Policy

     11. Establishment of Office and Authority and Functions 
           of Administrator...................................     1101
     13. Acquisition Councils.................................     1301
     15. Cost Accounting Standards............................     1501
     17. Agency Responsibilities and Procedures...............     1701
     19. Simplified Acquisition Procedures....................     1901
     21. Restrictions on Obtaining and Disclosing Certain 
           Information........................................     2101
     23. Miscellaneous........................................     2301

                        Division C--Procurement

     31. General..............................................     3101
     33. Planning and Solicitation............................     3301
     35. Truthful Cost and Pricing Data.......................     3501
     37. Awarding of Contracts................................     3701
     39. Specific Types of Contracts..........................     3901
     41. Task and Delivery Order Contracts....................     4101
     43. Allowable Costs......................................     4301
     45. Contract Financing...................................     4501
     47. Miscellaneous........................................     4701

                          Division A--General

                         CHAPTER 1--DEFINITIONS

                   SUBCHAPTER I--SUBTITLE DEFINITIONS

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

                 SUBCHAPTER II--DIVISION B DEFINITIONS

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

                 SUBCHAPTER III--DIVISION C DEFINITIONS

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

                   SUBCHAPTER I--SUBTITLE DEFINITIONS

     Sec. 101. Administrator

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

     Sec. 102. Commercial component

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

     Sec. 103. Commercial item

       In this subtitle, the term ``commercial item'' means--
       (1) an item, other than real property, that--
       (A) is of a type customarily used by the general public or 
     by nongovernmental entities for purposes other than 
     governmental purposes; and
       (B) has been sold, leased, or licensed, or offered for 
     sale, lease, or license, to the general public;

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

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

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

     Sec. 105. Component

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

     Sec. 106. Federal Acquisition Regulation

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

     Sec. 107. Full and open competition

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

     Sec. 108. Item and item of supply

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

     Sec. 109. Major system

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

     Sec. 110. Nondevelopmental item

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

     Sec. 111. Procurement

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

     Sec. 112. Procurement system

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

     Sec. 113. Responsible source

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

     Sec. 114. Standards

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

     Sec. 115. Supplies

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

     Sec. 116. Technical data

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

                 SUBCHAPTER II--DIVISION B DEFINITIONS

     Sec. 131. Acquisition

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

[[Page 11769]]

       (H) technical and management functions directly related to 
     the process of fulfilling agency requirements by contract.

     Sec. 132. Competitive procedures

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

     Sec. 133. Executive agency

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

     Sec. 134. Simplified acquisition threshold

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

                 SUBCHAPTER III--DIVISION C DEFINITIONS

     Sec. 151. Agency head

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

     Sec. 152. Competitive procedures

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

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

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

            Division B--Office of Federal Procurement Policy

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

                         SUBCHAPTER I--GENERAL

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

      SUBCHAPTER II--AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR

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

                         SUBCHAPTER I--GENERAL

     Sec. 1101. Office of Federal Procurement Policy

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

     Sec. 1102. Administrator

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

      SUBCHAPTER II--AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR

     Sec. 1121. General authority

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

     Sec. 1122. Functions

       (a) In General.--The functions of the Administrator 
     include--
       (1) providing leadership and ensuring action by the 
     executive agencies in establishing, developing, and 
     maintaining the single system of simplified Government-wide 
     procurement regulations and resolving differences among the 
     executive agencies in developing simplified Government-wide 
     procurement regulations, procedures, and forms;

[[Page 11770]]

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

     Sec. 1123. Small business concerns

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

     Sec. 1124. Tests of innovative procurement methods and 
       procedures

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

     Sec. 1125. Recipients of Federal grants or assistance

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

[[Page 11771]]



     Sec. 1126. Policy regarding consideration of contractor past 
       performance

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

     Sec. 1127. Determining benchmark compensation amount

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

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

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

     Sec. 1129. Center of excellence in contracting for services

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

     Sec. 1130. Effect of division on other law

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

     Sec. 1131. Annual report

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

                    CHAPTER 13--ACQUISITION COUNCILS

          SUBCHAPTER I--FEDERAL ACQUISITION REGULATORY COUNCIL

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

           SUBCHAPTER II--CHIEF ACQUISITION OFFICERS COUNCIL

1311.  Establishment and membership.
1312.  Functions.

          SUBCHAPTER I--FEDERAL ACQUISITION REGULATORY COUNCIL

     Sec. 1301. Definition

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

     Sec. 1302. Establishment and membership

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

     Sec. 1303. Functions and authority

       (a) Functions.--
       (1) Issue and maintain federal acquisition regulation.--
     Subject to sections 1121, 1122(a) to (c)(1), 1125, 1126, 
     1130, 1131, and 2305 of this title, the Administrator of 
     General Services, the Secretary of Defense, and the 
     Administrator of National Aeronautics and Space, pursuant to 
     their respective authorities under division C of this 
     subtitle, chapters 4 and 137 of title 10, and the National 
     Aeronautics and Space Act of 1958 (42 U.S.C. 2451 et seq.), 
     shall jointly issue and maintain in accordance with 
     subsection (d) a single Government-wide procurement 
     regulation, to be known as the Federal Acquisition 
     Regulation.
       (2) Limitation on other regulations.--Other regulations 
     relating to procurement issued by an executive agency shall 
     be limited to--
       (A) regulations essential to implement Government-wide 
     policies and procedures within the agency; and
       (B) additional policies and procedures required to satisfy 
     the specific and unique needs of the agency.
       (3) Ensure consistent regulations.--The Administrator, in 
     consultation with the Council, shall ensure that procurement 
     regulations prescribed by executive agencies are consistent 
     with the Federal Acquisition Regulation and in accordance 
     with the policies prescribed pursuant to section 1121(b) of 
     this title.
       (4) Request to review regulation.--
       (A) Basis for request.--Under procedures the Administrator 
     establishes, a person may request the Administrator to review 
     a regulation relating to procurement on the basis that the 
     regulation is inconsistent with the Federal Acquisition 
     Regulation.
       (B) Period of review.--Unless the request is frivolous or 
     does not, on its face, state a valid basis for the review, 
     the Administrator shall complete the review not later than 60 
     days after receiving the request. The time for completion of 
     the review may be extended if the Administrator determines 
     that an additional period of review is required. The 
     Administrator shall advise the requester

[[Page 11772]]

     of the reasons for the extension and the date by which the 
     review will be completed.
       (5) When regulation is inconsistent or needs to be 
     improved.--If the Administrator determines that a regulation 
     relating to procurement is inconsistent with the Federal 
     Acquisition Regulation or that the regulation otherwise 
     should be revised to remove an inconsistency with the 
     policies prescribed under section 1121(b) of this title, the 
     Administrator shall rescind or deny the promulgation of the 
     regulation or take other action authorized under sections 
     1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 2305 of 
     this title as may be necessary to remove the inconsistency. 
     If the Administrator determines that the regulation, although 
     not inconsistent with the Federal Acquisition Regulation or 
     those policies, should be revised to improve compliance with 
     the Regulation or policies, the Administrator shall take 
     action authorized under sections 1121, 1122(a) to (c)(1), 
     1125, 1126, 1130, 1131, and 2305 as may be necessary and 
     appropriate.
       (6) Decisions to be in writing and publicly available.--The 
     decisions of the Administrator shall be in writing and made 
     publicly available.
       (b) Additional Responsibilities of Membership.--
       (1) In general.--Subject to the authority, direction, and 
     control of the head of the agency concerned, each official 
     who represents an agency on the Council pursuant to section 
     1302(b) of this title shall--
       (A) approve or disapprove all regulations relating to 
     procurement that are proposed for public comment, prescribed 
     in final form, or otherwise made effective by that agency 
     before the regulation may be prescribed in final form, or 
     otherwise made effective, except that the official may grant 
     an interim approval, without review, for not more than 60 
     days for a procurement regulation in urgent and compelling 
     circumstances;
       (B) carry out the responsibilities of that agency set forth 
     in chapter 35 of title 44 for each information collection 
     request that relates to procurement rules or regulations; and
       (C) eliminate or reduce--
       (i) any redundant or unnecessary levels of review and 
     approval in the procurement system of that agency; and
       (ii) redundant or unnecessary procurement regulations which 
     are unique to that agency.
       (2) Limitation on delegation.--The authority to review and 
     approve or disapprove regulations under paragraph (1)(A) may 
     not be delegated to an individual outside the office of the 
     official who represents the agency on the Council pursuant to 
     section 1302(b) of this title.
       (c) Governing Policies.--All actions of the Council and of 
     members of the Council shall be in accordance with and 
     furtherance of the policies prescribed under section 1121(b) 
     of this title.
       (d) General Authority With Respect to Federal Acquisition 
     Regulation.--Subject to section 1121(d) of this title, the 
     Council shall manage, coordinate, control, and monitor the 
     maintenance of, issuance of, and changes in, the Federal 
     Acquisition Regulation.

     Sec. 1304. Contract clauses and certifications

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

           SUBCHAPTER II--CHIEF ACQUISITION OFFICERS COUNCIL

     Sec. 1311. Establishment and membership

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

     Sec. 1312. Functions

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

                 CHAPTER 15--COST ACCOUNTING STANDARDS

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

     Sec. 1501. Cost Accounting Standards Board

       (a) Organization.--The Cost Accounting Standards Board is 
     an independent board in the Office of Federal Procurement 
     Policy.
       (b) Membership.--
       (1) Number of members, chairman, and appointment.--The 
     Board consists of 5 members. One member is the Administrator, 
     who serves as Chairman. The other 4 members, all of whom 
     shall have experience in Federal Government contract cost 
     accounting, are as follows:
       (A) 2 representatives of the Federal Government--
       (i) one of whom is a representative of the Department of 
     Defense appointed by the Secretary of Defense; and
       (ii) one of whom is an officer or employee of the General 
     Services Administration appointed by the Administrator of 
     General Services.
       (B) 2 individuals from the private sector, each of whom is 
     appointed by the Administrator, and--
       (i) one of whom is a representative of industry; and
       (ii) one of whom is particularly knowledgeable about cost 
     accounting problems and systems.
       (2) Term of office.--
       (A) Length of term.--The term of office of each member, 
     other than the Administrator, is 4 years. The terms are 
     staggered, with the terms of 2 members expiring in the same 
     year, the term of another member expiring the next year, and 
     the term of the last member expiring the year after that.
       (B) Individual required to remain with appointing agency.--
     A member appointed

[[Page 11773]]

     under paragraph (1)(A) may not continue to serve after 
     ceasing to be an officer or employee of the agency from which 
     that member was appointed.
       (3) Vacancy.--A vacancy on the Board shall be filled in the 
     same manner in which the original appointment was made. A 
     member appointed to fill a vacancy serves for the remainder 
     of the term for which that member's predecessor was 
     appointed.
       (c) Senior Staff.--The Administrator, after consultation 
     with the Board, may--
       (1) appoint an executive secretary and 2 additional staff 
     members without regard to the provisions of title 5 governing 
     appointments in the competitive service; and
       (2) pay those employees without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of title 5 
     relating to classification and General Schedule pay rates, 
     except that those employees may not receive pay in excess of 
     the maximum rate of basic pay payable under section 5376 of 
     title 5.
       (d) Other Staff.--The Administrator may appoint, fix the 
     compensation of, and remove additional employees of the Board 
     under the applicable provisions of title 5.
       (e) Detailed and Temporary Personnel.--For service on 
     advisory committees and task forces to assist the Board in 
     carrying out its functions and responsibilities--
       (1) the Board, with the consent of the head of a Federal 
     agency, may use, without reimbursement, personnel of that 
     agency; and
       (2) the Administrator, after consultation with the Board, 
     may procure temporary and intermittent services of personnel 
     under section 3109(b) of title 5.
       (f) Compensation.--
       (1) Officers and employees of the government.--Members of 
     the Board who are officers or employees of the Federal 
     Government, and officers and employees of other agencies of 
     the Federal Government who are used under subsection (e)(1), 
     shall not receive additional compensation for services but 
     shall continue to be compensated by the employing department 
     or agency of the officer or employee.
       (2) Appointees from private sector.--Each member of the 
     Board appointed from the private sector shall receive 
     compensation at a rate not to exceed the daily equivalent of 
     the rate for level IV of the Executive Schedule for each day 
     (including travel time) in which the member is engaged in the 
     actual performance of duties vested in the Board.
       (3) Temporary and intermittent personnel.--An individual 
     hired under subsection (e)(2) may receive compensation at a 
     rate fixed by the Administrator, but not to exceed the daily 
     equivalent of the rate for level V of the Executive Schedule 
     for each day (including travel time) in which the individual 
     is properly engaged in the actual performance of duties under 
     this chapter.
       (4) Travel expenses.--While serving away from home or 
     regular place of business, Board members and other 
     individuals serving on an intermittent basis under this 
     chapter shall be allowed travel expenses in accordance with 
     section 5703 of title 5.

     Sec. 1502. Cost accounting standards

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

[[Page 11774]]

       (2) agree to a contract price adjustment, with interest, 
     for any increased costs paid to the contractor or 
     subcontractor by the Federal Government because of a change 
     in the contractor's or subcontractor's cost accounting 
     practices or a failure by the contractor or subcontractor to 
     comply with applicable cost accounting standards.
       (g) Nonapplicability of Certain Sections of Title 5.--
     Functions exercised under this chapter are not subject to 
     sections 551, 553 to 559, and 701 to 706 of title 5.

     Sec. 1503. Contract price adjustment

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

     Sec. 1504. Effect on other standards and regulations

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

     Sec. 1505. Examinations

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

     Sec. 1506. Authorization of appropriations

       Necessary amounts may be appropriated to carry out this 
     chapter.

           CHAPTER 17--AGENCY RESPONSIBILITIES AND PROCEDURES

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

     Sec. 1701. Cooperation with the Administrator

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

     Sec. 1702. Chief Acquisition Officers and senior procurement 
       executives

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

     Sec. 1703. Acquisition workforce

       (a) Description.--For purposes of this section, the 
     acquisition workforce of an agency

[[Page 11775]]

     consists of all employees serving in acquisition positions 
     listed in subsection (g)(1)(A).
       (b) Applicability.--
       (1) Nonapplicability to certain executive agencies.--Except 
     as provided in subsection (i), this section does not apply to 
     an executive agency that is subject to chapter 87 of title 
     10.
       (2) Applicability of programs.--The programs established by 
     this section apply to the acquisition workforce of each 
     executive agency.
       (c) Management Policies.--
       (1) Duties of head of executive agency.--
       (A) Establish policies and procedures.--After consultation 
     with the Administrator, the head of each executive agency 
     shall establish policies and procedures for the effective 
     management (including accession, education, training, career 
     development, and performance incentives) of the acquisition 
     workforce of the agency. The development of acquisition 
     workforce policies under this section shall be carried out 
     consistent with the merit system principles set forth in 
     section 2301(b) of title 5.
       (B) Ensure uniform implementation.--The head of each 
     executive agency shall ensure that, to the maximum extent 
     practicable, acquisition workforce policies and procedures 
     established are uniform in their implementation throughout 
     the agency.
       (2) Duties of administrator.--The Administrator shall issue 
     policies to promote uniform implementation of this section by 
     executive agencies, with due regard for differences in 
     program requirements among agencies that may be appropriate 
     and warranted in view of the agency mission. The 
     Administrator shall coordinate with the Deputy Director for 
     Management of the Office of Management and Budget to ensure 
     that the policies are consistent with the policies and 
     procedures established, and enhanced system of incentives 
     provided, pursuant to section 5051(c) of the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355, 108 
     Stat. 3351). The Administrator shall evaluate the 
     implementation of this section by executive agencies.
       (d) Authority and Responsibility of Senior Procurement 
     Executive.--Subject to the authority, direction, and control 
     of the head of an executive agency, the senior procurement 
     executive of the agency shall carry out all powers, 
     functions, and duties of the head of the agency with respect 
     to implementing this section. The senior procurement 
     executive shall ensure that the policies of the head of the 
     executive agency established in accordance with this section 
     are implemented throughout the agency.
       (e) Collecting and Maintaining Information.--The 
     Administrator shall ensure that the heads of executive 
     agencies collect and maintain standardized information on the 
     acquisition workforce related to implementing this section. 
     To the maximum extent practicable, information requirements 
     shall conform to standards the Director of the Office of 
     Personnel Management establishes for the Central Personnel 
     Data File.
       (f) Career Development.--
       (1) Career paths.--
       (A) Identification.--The head of each executive agency 
     shall ensure that appropriate career paths for personnel who 
     desire to pursue careers in acquisition are identified in 
     terms of the education, training, experience, and assignments 
     necessary for career progression to the most senior 
     acquisition positions. The head of each executive agency 
     shall make available information on those career paths.
       (B) Critical duties and tasks.--For each career path, the 
     head of each executive agency shall identify the critical 
     acquisition-related duties and tasks in which, at minimum, 
     employees of the agency in the career path shall be competent 
     to perform at full performance grade levels. For this 
     purpose, the head of the executive agency shall provide 
     appropriate coverage of the critical duties and tasks 
     identified by the Director of the Federal Acquisition 
     Institute.
       (C) Mandatory training and education.--For each career 
     path, the head of each executive agency shall establish 
     requirements for the completion of course work and related 
     on-the-job training in the critical acquisition-related 
     duties and tasks of the career path. The head of each 
     executive agency also shall encourage employees to maintain 
     the currency of their acquisition knowledge and generally 
     enhance their knowledge of related acquisition management 
     disciplines through academic programs and other self-
     developmental activities.
       (2) Performance incentives.--The head of each executive 
     agency shall provide for an enhanced system of incentives to 
     encourage excellence in the acquisition workforce that 
     rewards performance of employees who contribute to achieving 
     the agency's performance goals. The system of incentives 
     shall include provisions that--
       (A) relate pay to performance (including the extent to 
     which the performance of personnel in the workforce 
     contributes to achieving the cost goals, schedule goals, and 
     performance goals established for acquisition programs 
     pursuant to section 3103(b) of this title); and
       (B) provide for consideration, in personnel evaluations and 
     promotion decisions, of the extent to which the performance 
     of personnel in the workforce contributes to achieving the 
     cost goals, schedule goals, and performance goals.
       (g) Qualification Requirements.--
       (1) In general.--Subject to paragraph (2), the 
     Administrator shall--
       (A) establish qualification requirements, including 
     education requirements, for--
       (i) entry-level positions in the General Schedule 
     Contracting series (GS-1102);
       (ii) senior positions in the General Schedule Contracting 
     series (GS-1102);
       (iii) all positions in the General Schedule Purchasing 
     series (GS-1105); and
       (iv) positions in other General Schedule series in which 
     significant acquisition-related functions are performed; and
       (B) prescribe the manner and extent to which the 
     qualification requirements shall apply to an individual 
     serving in a position described in subparagraph (A) at the 
     time the requirements are established.
       (2) Relationship to requirements applicable to defense 
     acquisition workforce.--The Administrator shall establish 
     qualification requirements and make prescriptions under 
     paragraph (1) that are comparable to those established for 
     the same or equivalent positions pursuant to chapter 87 of 
     title 10 with appropriate modifications.
       (3) Approval of requirements.--The Administrator shall 
     submit any requirement established or prescription made under 
     paragraph (1) to the Director of the Office of Personnel 
     Management for approval. The Director is deemed to have 
     approved the requirement or prescription if the Director does 
     not disapprove the requirement or prescription within 30 days 
     after receiving it.
       (h) Education and Training.--
       (1) Funding levels.--The head of an executive agency shall 
     set forth separately the funding levels requested for 
     educating and training the acquisition workforce in the 
     budget justification documents submitted in support of the 
     President's budget submitted to Congress under section 1105 
     of title 31.
       (2) Tuition assistance.--The head of an executive agency 
     may provide tuition reimbursement in education (including a 
     full-time course of study leading to a degree) in accordance 
     with section 4107 of title 5 for personnel serving in 
     acquisition positions in the agency.
       (3) Restricted obligation.--Amounts appropriated for 
     education and training under this section may not be 
     obligated for another purpose.
       (i) Training Fund.--
       (1) Purposes.--The purposes of this subsection are to 
     ensure that the Federal acquisition workforce--
       (A) adapts to fundamental changes in the nature of Federal 
     Government acquisition of property and services associated 
     with the changing roles of the Federal Government; and
       (B) acquires new skills and a new perspective to enable it 
     to contribute effectively in the changing environment of the 
     21st century.
       (2) Establishment and management of fund.--There is an 
     acquisition workforce training fund. The Administrator of 
     General Services shall manage the fund through the Federal 
     Acquisition Institute to support the training of the 
     acquisition workforce of the executive agencies, except as 
     provided in paragraph (5). The Administrator of General 
     Services shall consult with the Administrator in managing the 
     fund.
       (3) Credits to fund.--Five percent of the fees collected by 
     executive agencies (other than the Department of Defense) 
     under the following contracts shall be credited to the fund:
       (A) Government-wide task and delivery-order contracts 
     entered into under sections 4103 and 4105 of this title.
       (B) Government-wide contracts for the acquisition of 
     information technology as defined in section 11101 of title 
     40 and multiagency acquisition contracts for that technology 
     authorized by section 11314 of title 40.
       (C) multiple-award schedule contracts entered into by the 
     Administrator of General Services.
       (4) Remittance by head of executive agency.--The head of an 
     executive agency that administers a contract described in 
     paragraph (3) shall remit to the General Services 
     Administration the amount required to be credited to the fund 
     with respect to the contract at the end of each quarter of 
     the fiscal year.
       (5) Transfer and use of fees collected from department of 
     defense.--The Administrator of General Services shall 
     transfer to the Secretary of Defense fees collected from the 
     Department of Defense pursuant to paragraph (3). The Defense 
     Acquisition University shall use the fees for acquisition 
     workforce training.
       (6) Amounts not to be used for other purposes.--The 
     Administrator of General Services, through the Office of 
     Federal Procurememt Policy, shall ensure that amounts 
     collected for training under this subsection are not used for 
     a purpose other than the purpose specified in paragraph (2).
       (7) Amounts are in addition to other amounts for education 
     and training.--Amounts credited to the fund are in addition 
     to amounts requested and appropriated for education and 
     training referred to in subsection (h)(1).

[[Page 11776]]

       (8) Availability of amounts.--Amounts credited to the fund 
     remain available to be expended only in the fiscal year for 
     which they are credited and the 2 succeeding fiscal years.
       (j) Recruitment Program.--
       (1) Shortage category positions.--For purposes of sections 
     3304, 5333, and 5753 of title 5, the head of a department or 
     agency of the Federal Government (other than the Secretary of 
     Defense) may determine, under regulations prescribed by the 
     Office of Personnel Management, that certain Federal 
     acquisition positions (as described in subsection (g)(1)(A)) 
     are shortage category positions in order to use the 
     authorities in those sections to recruit and appoint highly 
     qualified individuals directly to those positions in the 
     department or agency.
       (2) Termination of authority.--The head of a department or 
     agency may not appoint an individual to a position of 
     employment under this subsection after September 30, 2012.
       (k) Reemployment Without Loss of Annuity.--
       (1) Establishment of policies and procedures.--The head of 
     each executive agency, after consultation with the 
     Administrator and the Director of the Office of Personnel 
     Management, shall establish policies and procedures under 
     which the agency head may reemploy in an acquisition-related 
     position (as described in subsection (g)(1)(A)) an individual 
     receiving an annuity from the Civil Service Retirement and 
     Disability Fund, on the basis of the individual's service, 
     without discontinuing the annuity. The head of each executive 
     agency shall keep the Administrator informed of the agency's 
     use of this authority.
       (2) Criteria for continuation of annuity.--Policies and 
     procedures established under paragraph (1) shall authorize 
     the head of the executive agency, on a case-by-case basis, to 
     continue an annuity if any of the following makes the 
     reemployment of an individual essential:
       (A) The unusually high or unique qualifications of an 
     individual receiving an annuity from the Civil Service 
     Retirement and Disability Fund on the basis of the 
     individual's service.
       (B) The exceptional difficulty in recruiting or retaining a 
     qualified employee.
       (C) A temporary emergency hiring need.
       (3) Service not subject to csrs or fers.--An individual 
     reemployed under this subsection shall not be deemed an 
     employee for purposes of chapter 83 or 84 of title 5.
       (4) Reporting requirement.--The Administrator shall submit 
     annually to the Committee on Oversight and Government Reform 
     of the House of Representatives and the Committee on Homeland 
     Security and Governmental Affairs of the Senate a report on 
     the use of the authority under this subsection, including the 
     number of employees reemployed under authority of this 
     subsection.
       (5) Sunset provision.--The authority under this subsection 
     expires on December 31, 2011.

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

       (a) Definitions.--In this section:
       (1) Associate Administrator.--The term ``Associate 
     Administrator'' means the Associate Administrator for 
     Acquisition Workforce Programs as designated by the 
     Administrator pursuant to subsection (b).
       (2) Chief Acquisition Officer.--The term ``Chief 
     Acquisition Officer'' means a Chief Acquisition Officer for 
     an executive agency appointed pursuant to section 1702 of 
     this title.
       (b) Associate Administrator for Acquisition Workforce 
     Programs.--The Administrator shall designate a member of the 
     Senior Executive Service as the Associate Administrator for 
     Acquisition Workforce Programs. The Associate Administrator 
     shall be located in the Federal Acquisition Institute (or its 
     successor). The Associate Administrator shall be responsible 
     for--
       (1) supervising the acquisition workforce training fund 
     established under section 1703(i) of this title;
       (2) developing, in coordination with Chief Acquisition 
     Officers and Chief Human Capital Officers, a strategic human 
     capital plan for the acquisition workforce of the Federal 
     Government;
       (3) reviewing and providing input to individual agency 
     acquisition workforce succession plans;
       (4) recommending to the Administrator and other senior 
     government officials appropriate programs, policies, and 
     practices to increase the quantity and quality of the Federal 
     acquisition workforce; and
       (5) carrying out other functions that the Administrator may 
     assign.
       (c) Acquisition and Contracting Training Programs Within 
     Executive Agencies.--
       (1) Chief Acquisition Officer authorities and 
     responsibilities.--Subject to the authority, direction, and 
     control of the head of an executive agency, the Chief 
     Acquisition Officer for that agency shall carry out all 
     powers, functions, and duties of the head of the agency with 
     respect to implementation of this subsection. The Chief 
     Acquisition Officer shall ensure that the policies 
     established by the head of the agency in accordance with this 
     subsection are implemented throughout the agency.
       (2) Requirement.--The head of each executive agency, after 
     consultation with the Associate Administrator, shall 
     establish and operate acquisition and contracting training 
     programs. The programs shall--
       (A) have curricula covering a broad range of acquisition 
     and contracting disciplines corresponding to the specific 
     acquisition and contracting needs of the agency involved;
       (B) be developed and applied according to rigorous 
     standards; and
       (C) be designed to maximize efficiency, through the use of 
     self-paced courses, online courses, on-the-job training, and 
     the use of remote instructors, wherever those features can be 
     applied without reducing the effectiveness of the training or 
     negatively affecting academic standards.
       (d)  Government-wide Policies and Evaluation.--The 
     Administrator shall issue policies to promote the development 
     of performance standards for training and uniform 
     implementation of this section by executive agencies, with 
     due regard for differences in program requirements among 
     agencies that may be appropriate and warranted in view of the 
     agency mission. The Administrator shall evaluate the 
     implementation of the provisions of subsection (c) by 
     executive agencies.
       (e) Information on Acquisition and Contracting Training.--
     The Administrator shall ensure that the heads of executive 
     agencies collect and maintain standardized information on the 
     acquisition and contracting workforce related to the 
     implementation of subsection (c).
       (f) Acquisition Workforce Human Capital Succession Plan.--
       (1) In general.--Each Chief Acquisition Officer for an 
     executive agency shall develop, in consultation with the 
     Chief Human Capital Officer for the agency and the Associate 
     Administrator, a succession plan consistent with the agency's 
     strategic human capital plan for the recruitment, 
     development, and retention of the agency's acquisition 
     workforce, with a particular focus on warranted contracting 
     officers and program managers of the agency.
       (2) Content of plan.--The acquisition workforce succession 
     plan shall address--
       (A) recruitment goals for personnel from procurement intern 
     programs;
       (B) the agency's acquisition workforce training needs;
       (C) actions to retain high performing acquisition 
     professionals who possess critical relevant skills;
       (D) recruitment goals for personnel from the Federal Career 
     Intern Program; and
       (E) recruitment goals for personnel from the Presidential 
     Management Fellows Program.
       (g) Acquisition Workforce Development Strategic Plan.--
       (1) Purpose.--The purpose of this subsection is to 
     authorize the preparation and completion of the Acquisition 
     Workforce Development Strategic Plan, which is a plan for 
     Federal agencies other than the Department of Defense to--
       (A) develop a specific and actionable 5-year plan to 
     increase the size of the acquisition workforce; and
       (B) operate a government-wide acquisition intern program 
     for the Federal agencies.
       (2) Establishment of plan.--The Associate Administrator 
     shall be responsible for the management, oversight, and 
     administration of the Acquisition Workforce Development 
     Strategic Plan in cooperation and consultation with the 
     Office of Federal Procurement Policy and with the assistance 
     of the Federal Acquisition Institute.
       (3) Criteria.--The Acquisition Workforce Development 
     Strategic Plan shall include an examination of the following 
     matters:
       (A) The variety and complexity of acquisitions conducted by 
     each Federal agency covered by the plan, and the workforce 
     needed to effectively carry out the acquisitions.
       (B) The development of a sustainable funding model to 
     support efforts to hire, retain, and train an acquisition 
     workforce of appropriate size and skill to effectively carry 
     out the acquisition programs of the Federal agencies covered 
     by the plan, including an examination of interagency funding 
     methods and a discussion of how the model of the Defense 
     Acquisition Workforce Development Fund could be applied to 
     civilian agencies.
       (C) Any strategic human capital planning necessary to hire, 
     retain, and train an acquisition workforce of appropriate 
     size and skill at each Federal agency covered by the plan.
       (D) Methodologies that Federal agencies covered by the plan 
     can use to project future acquisition workforce personnel 
     hiring requirements, including an appropriate distribution of 
     such personnel across each category of positions designated 
     as acquisition workforce personnel under section 1703(g) of 
     this title.
       (E) Government-wide training standards and certification 
     requirements necessary to enhance the mobility and career 
     opportunities of the Federal acquisition workforce within the 
     Federal agencies covered by the plan.
       (F) If the Associate Administrator recommends as part of 
     the plan a growth in the acquisition workforce of the Federal 
     agencies covered by the plan below 25 percent over the next 5 
     years, an examination of each of the matters specified in 
     subparagraphs (A) to (E) in the context of a 5-year

[[Page 11777]]

     plan that increases the size of such acquisition workforce by 
     not less than 25 percent, or an explanation why such a level 
     of growth would not be in the best interest of the Federal 
     Government.
       (4) Deadline for completion.--The Acquisition Workforce 
     Development Strategic Plan shall be completed not later than 
     one year after October 14, 2008, and in a fashion that allows 
     for immediate implementation of its recommendations and 
     guidelines.
       (5) Funds.--The acquisition workforce development strategic 
     plan shall be funded from the acquisition workforce training 
     fund under section 1703(i) of this title.
       (h) Training in the Acquisition of Architect and 
     Engineering Services.--The Administrator shall ensure that a 
     sufficient number of Federal employees are trained in the 
     acquisition of architect and engineering services.
       (i) Utilization of Recruitment and Retention Authorities.-- 
     The Administrator, in coordination with the Director of the 
     Office of Personnel Management, shall encourage executive 
     agencies to use existing authorities, including direct hire 
     authority and tuition assistance programs, to recruit and 
     retain acquisition personnel and consider recruiting 
     acquisition personnel who may be retiring from the private 
     sector, consistent with existing laws and regulations.

     Sec. 1705. Advocates for competition

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

     Sec. 1706. Personnel evaluation

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

     Sec. 1707. Publication of proposed regulations

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

     Sec. 1708. Procurement notice

       (a) Notice Requirement.--Except as provided in subsection 
     (b)--
       (1) an executive agency intending to solicit bids or 
     proposals for a contract for property or services for a price 
     expected to exceed $10,000, but not to exceed $25,000, shall 
     post, for not less than 10 days, in a public place at the 
     contracting office issuing the solicitation a notice of 
     solicitation described in subsection (c);
       (2) an executive agency shall publish a notice of 
     solicitation described in subsection (c) if the agency 
     intends to--
       (A) solicit bids or proposals for a contract for property 
     or services for a price expected to exceed $25,000; or
       (B) place an order, expected to exceed $25,000, under a 
     basic agreement, basic ordering agreement, or similar 
     arrangement; and
       (3) an executive agency awarding a contract for property or 
     services for a price exceeding $25,000, or placing an order 
     exceeding $25,000 under a basic agreement, basic ordering 
     agreement, or similar arrangement, shall furnish for 
     publication a notice announcing the award or order if there 
     is likely to be a subcontract under the contract or order.
       (b) Exemptions.--
       (1) In general.--A notice is not required under subsection 
     (a) if--
       (A) the proposed procurement is for an amount not greater 
     than the simplified acquisition threshold and is to be 
     conducted by--
       (i) using widespread electronic public notice of the 
     solicitation in a form that allows

[[Page 11778]]

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

     Sec. 1709. Contracting functions performed by Federal 
       personnel

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

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

       (a) Public-private competition.--
       (1) When conversion to contractor performance is allowed.--
     A function of an executive agency performed by 10 or more 
     agency civilian employees may not be converted, in whole or 
     in part, to performance by a contractor unless the conversion 
     is based on the results of a public-private competition 
     that--
       (A) formally compares the cost of performance of the 
     function by agency civilian employees with the cost of 
     performance by a contractor;
       (B) creates an agency tender, including a most efficient 
     organization plan, in accordance with Office of Management 
     and Budget Circular A76, as implemented on May 29, 2003, or 
     any successor circular;
       (C) includes the issuance of a solicitation;
       (D) determines whether the submitted offers meet the needs 
     of the executive agency with respect to factors other than 
     cost, including quality, reliability, and timeliness;
       (E) examines the cost of performance of the function by 
     agency civilian employees and the cost of performance of the 
     function by one or more contractors to demonstrate whether 
     converting to performance by a contractor will result in 
     savings to the Federal

[[Page 11779]]

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

     Sec. 1711. Value engineering

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

     Sec. 1712. Record requirements

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

     Sec. 1713. Procurement data

       (a) Definitions.--In this section:
       (1) Qualified hubzone small business concern.--The term 
     ``qualified HUBZone small business concern'' has the meaning

[[Page 11780]]

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

             CHAPTER 19--SIMPLIFIED ACQUISITION PROCEDURES

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

     Sec. 1901. Simplified acquisition procedures

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

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

       (a) Definition.--For purposes of this section, the micro-
     purchase threshold is $2,500.
       (b) Compliance With Certain Requirements and 
     Nonapplicability of Certain Authority.--
       (1) Compliance with certain requirements.--The head of each 
     executive agency shall ensure that procuring activities of 
     that agency, when awarding a contract with a price exceeding 
     the micro-purchase threshold, comply with the requirements of 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a)), 
     section 2323 of title 10, and section 7102 of the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355, 15 
     U.S.C. 644 note).
       (2) Nonapplicability of certain authority.--The authority 
     under part 13.106(a)(1) of the Federal Acquisition Regulation 
     (48 C.F.R. 13.106(a)(1)), as in effect on November 18, 1993, 
     to make purchases without securing competitive quotations 
     does not apply to a purchase with a price exceeding the 
     micro-purchase threshold.
       (c) Nonapplicability of Certain Provisions.--An executive 
     agency purchase with an anticipated value of the micro-
     purchase threshold or less is not subject to section 15(j) of 
     the Small Business Act (15 U.S.C. 644(j)) and chapter 83 of 
     this title.
       (d) Purchases Without Competitive Quotations.--A purchase 
     not greater than $2,500 may be made without obtaining 
     competitive quotations if an employee of an executive agency 
     or a member of the armed forces, authorized to do so, 
     determines that the price for the purchase is reasonable.
       (e) Equitable Distribution.--Purchases not greater than 
     $2,500 shall be distributed equitably among qualified 
     suppliers.
       (f) Implementation Through Federal Acquisition 
     Regulation.--This section shall be implemented through the 
     Federal Acquisition Regulation.

     Sec. 1903. Special emergency procurement authority

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

     Sec. 1904. Certain transactions for defense against attack

       (a) Authority.--
       (1) In general.--The head of an executive agency that 
     engages in basic research, applied research, advanced 
     research, and development projects that are necessary to the 
     responsibilities of the executive agency in the field of 
     research and development and have the potential to facilitate 
     defense against or recovery from terrorism or nuclear, 
     biological, chemical, or radiological attack may exercise the 
     same authority (subject to the same restrictions and 
     conditions) with respect to the research and projects as the 
     Secretary of Defense may exercise under section 2371 of title 
     10, except for subsections (b) and (f) of section 2371.
       (2) Prototype projects.--The head of an executive agency, 
     under the authority of paragraph (1), may carry out prototype 
     projects that meet the requirements of paragraph (1) in 
     accordance with the requirements and conditions provided for 
     carrying out prototype projects under section 845 of the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160, 10 U.S.C. 2371 note), including that, to 
     the maximum extent practicable, competitive procedures shall 
     be used when entering into agreements to carry out projects 
     under section 845(a) of that Act and that the period of 
     authority to carry out projects under section 845(a) of that 
     Act terminates as provided in section 845(i) of that Act.
       (3) Application of requirements and conditions.--In 
     applying the requirements and

[[Page 11781]]

     conditions of section 845 of that Act under this subsection--
       (A) section 845(c) of that Act shall apply with respect to 
     prototype projects carried out under paragraph (2); and
       (B) the Director of the Office of Management and Budget 
     shall perform the functions of the Secretary of Defense under 
     section 845(d) of that Act.
       (4) Applicability to selected executive agencies.--
       (A) Office of management and budget.--The head of an 
     executive agency may exercise authority under this subsection 
     for a project only if authorized by the Director of the 
     Office of Management and Budget.
       (B) Department of homeland security.--Authority under this 
     subsection does not apply to the Secretary of Homeland 
     Security while section 831 of the Homeland Security Act of 
     2002 (6 U.S.C. 391) is in effect.
       (b) Regulations.--The Director of the Office of Management 
     and Budget shall prescribe regulations to carry out this 
     section. No transaction may be conducted under the authority 
     of this section before the regulations take effect.
       (c) Annual Report.--The annual report of the head of an 
     executive agency that is required under section 2371(h) of 
     title 10, as applied to the head of the executive agency by 
     subsection (a), shall be submitted to the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Oversight and Government Reform of the House 
     of Representatives.
       (d) Termination of Authority.--The authority to carry out 
     transactions under subsection (a) terminates on September 30, 
     2008.

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

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

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

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

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

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

[[Page 11782]]



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

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

     CHAPTER 21--RESTRICTIONS ON OBTAINING AND DISCLOSING CERTAIN 
                              INFORMATION

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

     Sec. 2101. Definitions

       In this chapter:
       (1) Contracting officer.--The term ``contracting officer'' 
     means an individual who, by appointment in accordance with 
     applicable regulations, has the authority to enter into a 
     Federal agency procurement contract on behalf of the 
     Government and to make determinations and findings with 
     respect to the contract.
       (2) Contractor bid or proposal information.--The term 
     ``contractor bid or proposal information'' means any of the 
     following information submitted to a Federal agency as part 
     of, or in connection with, a bid or proposal to enter into a 
     Federal agency procurement contract, if that information 
     previously has not been made available to the public or 
     disclosed publicly:
       (A) Cost or pricing data (as defined in section 2306a(h) of 
     title 10 with respect to procurements subject to that section 
     and section 3501(a) of this title with respect to 
     procurements subject to that section).
       (B) Indirect costs and direct labor rates.
       (C) Proprietary information about manufacturing processes, 
     operations, or techniques marked by the contractor in 
     accordance with applicable law or regulation.
       (D) Information marked by the contractor as ``contractor 
     bid or proposal information'', in accordance with applicable 
     law or regulation.
       (3) Federal agency.--The term ``Federal agency'' has the 
     meaning given that term in section 102 of title 40.
       (4) Federal agency procurement.--The term ``Federal agency 
     procurement'' means the acquisition (by using competitive 
     procedures and awarding a contract) of goods or services 
     (including construction) from non-Federal sources by a 
     Federal agency using appropriated funds.
       (5) Official.--The term ``official'' means--
       (A) an officer, as defined in section 2104 of title 5;
       (B) an employee, as defined in section 2105 of title 5; and
       (C) a member of the uniformed services, as defined in 
     section 2101(3) of title 5.
       (6) Protest.--The term ``protest'' means a written 
     objection by an interested party to the award or proposed 
     award of a Federal agency procurement contract, pursuant to 
     subchapter V of chapter 35 of title 31.
       (7) Source selection information.--The term ``source 
     selection information'' means any of the following 
     information prepared for use by a Federal agency to evaluate 
     a bid or proposal to enter into a Federal agency procurement 
     contract, if that information previously has not been made 
     available to the public or disclosed publicly:
       (A) Bid prices submitted in response to a Federal agency 
     solicitation for sealed bids, or lists of those bid prices 
     before public bid opening.
       (B) Proposed costs or prices submitted in response to a 
     Federal agency solicitation, or lists of those proposed costs 
     or prices.
       (C) Source selection plans.
       (D) Technical evaluation plans.
       (E) Technical evaluations of proposals.
       (F) Cost or price evaluations of proposals.
       (G) Competitive range determinations that identify 
     proposals that have a reasonable chance of being selected for 
     award of a contract.
       (H) Rankings of bids, proposals, or competitors.
       (I) Reports and evaluations of source selection panels, 
     boards, or advisory councils.
       (J) Other information marked as ``source selection 
     information'' based on a case-by-case determination by the 
     head of the agency, the head's designee, or the contracting 
     officer that its disclosure would jeopardize the integrity or 
     successful completion of the Federal agency procurement to 
     which the information relates.

     Sec. 2102. Prohibitions on disclosing and obtaining 
       procurement information

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

[[Page 11783]]



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

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

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

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

     Sec. 2105. Penalties and administrative actions

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

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

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

     Sec. 2107. Savings provisions

       This chapter does not--
       (1) restrict the disclosure of information to, or its 
     receipt by, a person or class of persons authorized, in 
     accordance with applicable agency regulations or procedures, 
     to receive that information;
       (2) restrict a contractor from disclosing its own bid or 
     proposal information or the recipient from receiving that 
     information;
       (3) restrict the disclosure or receipt of information 
     relating to a Federal agency procurement after it has been 
     canceled by the Federal agency before contract award unless 
     the Federal agency plans to resume the procurement;
       (4) prohibit individual meetings between a Federal agency 
     official and an offeror or potential offeror for, or a 
     recipient of, a contract or subcontract under a Federal 
     agency procurement, provided that unauthorized disclosure or 
     receipt of contractor bid or proposal information or source 
     selection information does not occur;
       (5) authorize the withholding of information from, nor 
     restrict its receipt by, Congress, a committee or 
     subcommittee of Congress, the Comptroller General, a Federal 
     agency, or an inspector general of a Federal agency;
       (6) authorize the withholding of information from, nor 
     restrict its receipt by, the Comptroller General in the 
     course of a protest against the award or proposed award of a 
     Federal agency procurement contract; or
       (7) limit the applicability of a requirement, sanction, 
     contract penalty, or remedy established under another law or 
     regulation.

                       CHAPTER 23--MISCELLANEOUS

Sec.
2301.  Use of electronic commerce in Federal procurement.
2302.  Rights in technical data.
2303.  Ethics safeguards related to contractor conflicts of interest.
2304.  Conflict of interest standards for consultants.
2305.  Authority of Director of Office of Management and Budget not 
              affected.

[[Page 11784]]

2306.  Openness of meetings.
2307.  Comptroller General's access to information.
2308.  Modular contracting for information technology.
2309.  Protection of constitutional rights of contractors.
2310.  Performance-based contracts or task orders for services to be 
              treated as contracts for the procurement of commercial 
              items.
2311.  Enhanced transparency on interagency contracting and other 
              transactions.
2312.  Contingency Contracting Corps.
2313.  Database for Federal agency contract and grant officers and 
              suspension and debarment officials

     Sec. 2301. Use of electronic commerce in Federal procurement

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

     Sec. 2302. Rights in technical data

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

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

       (a) Definition.--In this section, the term ``relevant 
     acquisition function'' means an acquisition function closely 
     associated with inherently governmental functions.
       (b) Policy on Personal Conflicts of Interest by Contractor 
     Employees.--
       (1) Development and issuance of policy.--The Administrator 
     shall develop and issue a standard policy to prevent personal 
     conflicts of interest by contractor employees performing 
     relevant acquisition functions (including the development, 
     award, and administration of Federal Government contracts) 
     for or on behalf of a Federal agency or department.
       (2) Elements of policy.--The policy shall--
       (A) define ``personal conflict of interest'' as it relates 
     to contractor employees performing relevant acquisition 
     functions; and

[[Page 11785]]

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

     Sec. 2304. Conflict of interest standards for consultants

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

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

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

     Sec. 2306. Openness of meetings

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

     Sec. 2307. Comptroller General's access to information

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

     Sec. 2308. Modular contracting for information technology

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

     Sec. 2309. Protection of constitutional rights of contractors

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

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

       (a) Criteria.--A performance-based contract for the 
     procurement of services entered into by an executive agency 
     or a performance-based task order for services issued by an 
     executive agency may be treated as a contract for the 
     procurement of commercial items if--
       (1) the value of the contract or task order is estimated 
     not to exceed $25,000,000;
       (2) the contract or task order sets forth specifically each 
     task to be performed and, for each task--
       (A) defines the task in measurable, mission-related terms;
       (B) identifies the specific end products or output to be 
     achieved; and

[[Page 11786]]

       (C) contains firm, fixed prices for specific tasks to be 
     performed or outcomes to be achieved; and
       (3) the source of the services provides similar services to 
     the general public under terms and conditions similar to 
     those offered to the Federal Government.
       (b) Regulations.--Regulations implementing this section 
     shall require agencies to collect and maintain reliable data 
     sufficient to identify the contracts or task orders treated 
     as contracts for commercial items using the authority of this 
     section. The data may be collected using the Federal 
     Procurement Data System or other reporting mechanism.
       (c) Report.--Not later than 2 years after November 24, 
     2003, the Director of the Office of Management and Budget 
     shall prepare and submit to the Committees on Homeland 
     Security and Governmental Affairs and on Armed Services of 
     the Senate and the Committees on Oversight and Government 
     Reform and on Armed Services of the House of Representatives 
     a report on the contracts or task orders treated as contracts 
     for commercial items using the authority of this section. The 
     report shall include data on the use of the authority, both 
     government-wide and for each department and agency.
       (d) Expiration.--The authority under this section expires 
     10 years after November 24, 2003.

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

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

     Sec. 2312. Contingency Contracting Corps

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

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

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

[[Page 11787]]

       (2) Review and assessment of data.--
       (A) In general.--Before awarding a contract or grant in 
     excess of the simplified acquisition threshold under section 
     134 of this title, the Federal agency official responsible 
     for awarding the contract or grant shall review the database 
     and consider all information in the database with regard to 
     any offer or proposal, and in the case of a contract, shall 
     consider other past performance information available with 
     respect to the offeror in making any responsibility 
     determination or past performance evaluation for the offeror.
       (B) Documentation in contract file.--The contract file for 
     each contract of a Federal agency in excess of the simplified 
     acquisition threshold shall document the manner in which the 
     material in the database was considered in any responsibility 
     determination or past performance evaluation.
       (f) Disclosure in Applications.--The Federal Acquisition 
     Regulation shall require that persons with Federal agency 
     contracts and grants valued in total greater than $10,000,000 
     shall--
       (1) submit to the Administrator of General Services, in a 
     manner determined appropriate by the Administrator of General 
     Services, the information subject to inclusion in the 
     database as listed in subsection (c) current as of the date 
     of submittal of the information under this subsection; and
       (2) update the information submitted under paragraph (1) on 
     a semiannual basis.
       (g) Rulemaking.--The Administrator of General Services 
     shall prescribe regulations that may be necessary to carry 
     out this section.

                        Division C--Procurement

                          CHAPTER 31--GENERAL

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

     Sec. 3101. Applicability

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

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

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

     Sec. 3103. Acquisition programs

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

     Sec. 3104. Small business concerns

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

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

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

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

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

                 CHAPTER 33--PLANNING AND SOLICITATION

Sec.
3301.  Full and open competition.
3302.  Requirements for purchase of property and services pursuant to 
              multiple award contracts.
3303.  Exclusion of particular source or restriction of solicitation to 
              small business concerns.
3304.  Use of noncompetitive procedures.
3305.  Simplified procedures for small purchases.

[[Page 11788]]

3306.  Planning and solicitation requirements.
3307.  Preference for commercial items.
3308.  Planning for future competition in contracts for major systems.
3309.  Design-build selection procedures.
3310.  Quantities to order.
3311.  Qualification requirement.

     Sec. 3301. Full and open competition

       (a) In General.--Except as provided in sections 3303, 
     3304(a), and 3305 of this title and except in the case of 
     procurement procedures otherwise expressly authorized by 
     statute, an executive agency in conducting a procurement for 
     property or services shall--
       (1) obtain full and open competition through the use of 
     competitive procedures in accordance with the requirements of 
     this division and the Federal Acquisition Regulation; and
       (2) use the competitive procedure or combination of 
     competitive procedures that is best suited under the 
     circumstances of the procurement.
       (b) Appropriate Competitive Procedures.--
       (1) Use of sealed bids.--In determining the competitive 
     procedures appropriate under the circumstance, an executive 
     agency shall--
       (A) solicit sealed bids if--
       (i) time permits the solicitation, submission, and 
     evaluation of sealed bids;
       (ii) the award will be made on the basis of price and other 
     price-related factors;
       (iii) it is not necessary to conduct discussions with the 
     responding sources about their bids; and
       (iv) there is a reasonable expectation of receiving more 
     than one sealed bid; or
       (B) request competitive proposals if sealed bids are not 
     appropriate under subparagraph (A).
       (2) Sealed bid not required.--Paragraph (1)(A) does not 
     require the use of sealed-bid procedures in cases in which 
     section 204(e) of title 23 applies.
       (c) Efficient Fulfillment of Government Requirements.--The 
     Federal Acquisition Regulation shall ensure that the 
     requirement to obtain full and open competition is 
     implemented in a manner that is consistent with the need to 
     efficiently fulfill the Federal Government's requirements.

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

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

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

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

     Sec. 3304. Use of noncompetitive procedures

       (a) When Noncompetitive Procedures May Be Used.--An 
     executive agency may use procedures other than competitive 
     procedures only when--
       (1) the property or services needed by the executive agency 
     are available from only one responsible source and no other 
     type of property or services will satisfy the needs of the 
     executive agency;
       (2) the executive agency's need for the property or 
     services is of such an unusual and compelling urgency that 
     the Federal Government would be seriously injured unless the 
     executive agency is permitted to limit the number of sources 
     from which it solicits bids or proposals;
       (3) it is necessary to award the contract to a particular 
     source--

[[Page 11789]]

       (A) to maintain a facility, producer, manufacturer, or 
     other supplier available for furnishing property or services 
     in case of a national emergency or to achieve industrial 
     mobilization;
       (B) to establish or maintain an essential engineering, 
     research, or development capability to be provided by an 
     educational or other nonprofit institution or a Federally 
     funded research and development center;
       (C) to procure the services of an expert for use, in any 
     litigation or dispute (including any reasonably foreseeable 
     litigation or dispute) involving the Federal Government, in 
     any trial, hearing, or proceeding before a court, 
     administrative tribunal, or agency, whether or not the expert 
     is expected to testify; or
       (D) to procure the services of an expert or neutral for use 
     in any part of an alternative dispute resolution or 
     negotiated rulemaking process, whether or not the expert is 
     expected to testify;
       (4) the terms of an international agreement or treaty 
     between the Federal Government and a foreign government or an 
     international organization, or the written directions of a 
     foreign government reimbursing the executive agency for the 
     cost of the procurement of the property or services for that 
     government, have the effect of requiring the use of 
     procedures other than competitive procedures;
       (5) subject to section 3105 of this title, a statute 
     expressly authorizes or requires that the procurement be made 
     through another executive agency or from a specified source, 
     or the agency's need is for a brand-name commercial item for 
     authorized resale;
       (6) the disclosure of the executive agency's needs would 
     compromise the national security unless the agency is 
     permitted to limit the number of sources from which it 
     solicits bids or proposals; or
       (7) the head of the executive agency (who may not delegate 
     the authority under this paragraph)--
       (A) determines that it is necessary in the public interest 
     to use procedures other than competitive procedures in the 
     particular procurement concerned; and
       (B) notifies Congress in writing of that determination not 
     less than 30 days before the award of the contract.
       (b) Property or Services Deemed Available From Only One 
     Source.--For the purposes of subsection (a)(1), in the case 
     of--
       (1) a contract for property or services to be awarded on 
     the basis of acceptance of an unsolicited research proposal, 
     the property or services are deemed to be available from only 
     one source if the source has submitted an unsolicited 
     research proposal that demonstrates a unique and innovative 
     concept, the substance of which is not otherwise available to 
     the Federal Government and does not resemble the substance of 
     a pending competitive procurement; or
       (2) a follow-on contract for the continued development or 
     production of a major system or highly specialized equipment, 
     the property may be deemed to be available only from the 
     original source and may be procured through procedures other 
     than competitive procedures when it is likely that award to a 
     source other than the original source would result in--
       (A) substantial duplication of cost to the Federal 
     Government that is not expected to be recovered through 
     competition; or
       (B) unacceptable delay in fulfilling the executive agency's 
     needs.
       (c) Property or Services Needed With Unusual and Compelling 
     Urgency.--
       (1) Allowable contract period.--The contract period of a 
     contract described in paragraph (2) that is entered into by 
     an executive agency pursuant to the authority provided under 
     subsection (a)(2)--
       (A) may not exceed the time necessary--
       (i) to meet the unusual and compelling requirements of the 
     work to be performed under the contract; and
       (ii) for the executive agency to enter into another 
     contract for the required goods or services through the use 
     of competitive procedures; and
       (B) may not exceed one year unless the head of the 
     executive agency entering into the contract determines that 
     exceptional circumstances apply.
       (2) Applicability of allowable contract period.--This 
     subsection applies to any contract in an amount greater than 
     the simplified acquisition threshold.
       (d) Offer Requests to Potential Sources.--An executive 
     agency using procedures other than competitive procedures to 
     procure property or services by reason of the application of 
     paragraph (2) or (6) of subsection (a) shall request offers 
     from as many potential sources as is practicable under the 
     circumstances.
       (e) Justification for Use of Noncompetitive Procedures.--
       (1) Prerequisites for awarding contract.--Except as 
     provided in paragraphs (3) and (4), an executive agency may 
     not award a contract using procedures other than competitive 
     procedures unless--
       (A) the contracting officer for the contract justifies the 
     use of those procedures in writing and certifies the accuracy 
     and completeness of the justification;
       (B) the justification is approved, in the case of a 
     contract for an amount--
       (i) exceeding $500,000 but equal to or less than 
     $10,000,000, by the advocate for competition for the 
     procuring activity (without further delegation) or by an 
     official referred to in clause (ii) or (iii);
       (ii) exceeding $10,000,000 but equal to or less than 
     $50,000,000, by the head of the procuring activity or by a 
     delegate who, if a member of the armed forces, is a general 
     or flag officer or, if a civilian, is serving in a position 
     in which the individual is entitled to receive the daily 
     equivalent of the maximum annual rate of basic pay payable 
     under section 5376 of title 5 (or in a comparable or higher 
     position under another schedule); or
       (iii) exceeding $50,000,000, by the senior procurement 
     executive of the agency designated pursuant to section 
     1702(c) of this title (without further delegation); and
       (C) any required notice has been published with respect to 
     the contract pursuant to section 1708 of this title and the 
     executive agency has considered all bids or proposals 
     received in response to that notice.
       (2) Elements of justification.--The justification required 
     by paragraph (1)(A) shall include--
       (A) a description of the agency's needs;
       (B) an identification of the statutory exception from the 
     requirement to use competitive procedures and a 
     demonstration, based on the proposed contractor's 
     qualifications or the nature of the procurement, of the 
     reasons for using that exception;
       (C) a determination that the anticipated cost will be fair 
     and reasonable;
       (D) a description of the market survey conducted or a 
     statement of the reasons a market survey was not conducted;
       (E) a listing of any sources that expressed in writing an 
     interest in the procurement; and
       (F) a statement of any actions the agency may take to 
     remove or overcome a barrier to competition before a 
     subsequent procurement for those needs.
       (3) Justification allowed after contract awarded.--In the 
     case of a procurement permitted by subsection (a)(2), the 
     justification and approval required by paragraph (1) may be 
     made after the contract is awarded.
       (4) Justification not required.--The justification and 
     approval required by paragraph (1) are not required if--
       (A) a statute expressly requires that the procurement be 
     made from a specified source;
       (B) the agency's need is for a brand-name commercial item 
     for authorized resale;
       (C) the procurement is permitted by subsection (a)(7); or
       (D) the procurement is conducted under chapter 85 of this 
     title or section 8(a) of the Small Business Act (15 U.S.C. 
     637(a)).
       (5) Restrictions on executive agencies.--
       (A) Contracts and procurement of property or services.--In 
     no case may an executive agency--
       (i) enter into a contract for property or services using 
     procedures other than competitive procedures on the basis of 
     the lack of advance planning or concerns related to the 
     amount available to the agency for procurement functions; or
       (ii) procure property or services from another executive 
     agency unless the other executive agency complies fully with 
     the requirements of this division in its procurement of the 
     property or services.
       (B) Additional restriction.--The restriction set out in 
     subparagraph (A)(ii) is in addition to any other restriction 
     provided by law.
       (f) Public Availability of Justification and Approval 
     Required for Using Noncompetitive Procedures.--
       (1) Time requirement.--
       (A) Within 14 days after contract award.--Except as 
     provided in subparagraph (B), in the case of a procurement 
     permitted by subsection (a), the head of an executive agency 
     shall make publicly available, within 14 days after the award 
     of the contract, the documents containing the justification 
     and approval required by subsection (e)(1) with respect to 
     the procurement.
       (B) Within 30 days after contract award.--In the case of a 
     procurement permitted by subsection (a)(2), subparagraph (A) 
     shall be applied by substituting ``30 days'' for ``14 days''.
       (2) Availability on websites.--The documents referred to in 
     subparagraph (A) of paragraph (1) shall be made available on 
     the website of the agency and through a Government-wide 
     website selected by the Administrator.
       (3) Exception to availability and approval requirement.--
     This subsection does not require the public availability of 
     information that is exempt from public disclosure under 
     section 552(b) of title 5.

     Sec. 3305. Simplified procedures for small purchases

       (a) Authorization.--To promote efficiency and economy in 
     contracting and to avoid unnecessary burdens for agencies and 
     contractors, the Federal Acquisition Regulation shall provide 
     for special simplified procedures for purchases of property 
     and services for amounts--
       (1) not greater than the simplified acquisition threshold; 
     and
       (2) greater than the simplified acquisition threshold but 
     not greater than $5,000,000 for

[[Page 11790]]

     which the contracting officer reasonably expects, based on 
     the nature of the property or services sought and on market 
     research, that offers will include only commercial items.
       (b) Leasehold Interests in Real Property.--The 
     Administrator of General Services shall prescribe regulations 
     that provide special simplified procedures for acquisitions 
     of leasehold interests in real property at rental rates that 
     do not exceed the simplified acquisition threshold. The 
     rental rate under a multiyear lease does not exceed the 
     simplified acquisition threshold if the average annual amount 
     of the rent payable for the period of the lease does not 
     exceed the simplified acquisition threshold.
       (c) Prohibition on Dividing Contracts.--A proposed purchase 
     or contract for an amount above the simplified acquisition 
     threshold may not be divided into several purchases or 
     contracts for lesser amounts to use the simplified procedures 
     required by subsection (a).
       (d) Promotion of Competition.--In using the simplified 
     procedures, an executive agency shall promote competition to 
     the maximum extent practicable.
       (e) Compliance With Special Requirements of Federal 
     Acquisition Regulation.--An executive agency shall comply 
     with the Federal Acquisition Regulation provisions referred 
     to in section 1901(e) of this title.

     Sec. 3306. Planning and solicitation requirements

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

     Sec. 3307. Preference for commercial items

       (a) Relationship of Provisions of Law to Procurement of 
     Commercial Items.--
       (1) This division.--Unless otherwise specifically provided, 
     all other provisions in this division also apply to the 
     procurement of commercial items.
       (2) Laws listed in federal acquisition regulation.--A 
     contract for the procurement of a commercial item entered 
     into by the head of an executive agency is not subject to a 
     law properly listed in the Federal Acquisition Regulation 
     pursuant to section 1906 of this title.
       (b) Preference.--The head of each executive agency shall 
     ensure that, to the maximum extent practicable--
       (1) requirements of the executive agency with respect to a 
     procurement of supplies or services are stated in terms of--
       (A) functions to be performed;
       (B) performance required; or
       (C) essential physical characteristics;
       (2) those requirements are defined so that commercial items 
     or, to the extent that commercial items suitable to meet the 
     executive agency's needs are not available, nondevelopmental 
     items other than commercial items may be procured to fulfill 
     those requirements; and
       (3) offerors of commercial items and nondevelopmental items 
     other than commercial items are provided an opportunity to 
     compete in any procurement to fill those requirements.
       (c) Implementation.--The head of each executive agency 
     shall ensure that procurement officials in that executive 
     agency, to the maximum extent practicable--
       (1) acquire commercial items or nondevelopmental items 
     other than commercial items to meet the needs of the 
     executive agency;
       (2) require that prime contractors and subcontractors at 
     all levels under contracts of the executive agency 
     incorporate commercial items or nondevelopmental items other 
     than commercial items as components of items supplied to the 
     executive agency;
       (3) modify requirements in appropriate cases to ensure that 
     the requirements can be met by commercial items or, to the 
     extent that commercial items suitable to meet the executive 
     agency's needs are not available,

[[Page 11791]]

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

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

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

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

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

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

       (a) Development Contract.--
       (1) Determining whether proposals are necessary.--In 
     preparing a solicitation for the award of a development 
     contract for a major system, the head of an agency shall 
     consider requiring in the solicitation that an offeror 
     include in its offer proposals described in paragraph (2). In 
     determining whether to require the proposals, the head of the 
     agency shall consider the purposes for which the system is 
     being procured and the technology necessary to meet the 
     system's required capabilities. If the proposals are 
     required, the head of the agency shall consider them in 
     evaluating the offeror's price.
       (2) Contents of proposals.--The proposals that the head of 
     an agency is to consider requiring in a solicitation for the 
     award of a development contract are the following:
       (A) Proposals to incorporate in the design of the major 
     system items that are currently available within the supply 
     system of the Federal agency responsible for the major 
     system, available elsewhere in the national supply system, or 
     commercially available from more than one source.
       (B) With respect to items that are likely to be required in 
     substantial quantities during the system's service life, 
     proposals to incorporate in the design of the major system 
     items that the Federal Government will be able to acquire 
     competitively in the future.
       (b) Production Contract.--
       (1) Determining whether proposals are necessary.--In 
     preparing a solicitation for the award of a production 
     contract for a major system, the head of an agency shall 
     consider requiring in the solicitation that an

[[Page 11792]]

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

     Sec. 3309. Design-build selection procedures

       (a) Authorization.--Unless the traditional acquisition 
     approach of design-bid-build established under sections 1101 
     to 1104 of title 40 or another acquisition procedure 
     authorized by law is used, the head of an executive agency 
     shall use the two-phase selection procedures authorized in 
     this section for entering into a contract for the design and 
     construction of a public building, facility, or work when a 
     determination is made under subsection (b) that the 
     procedures are appropriate for use.
       (b) Criteria for Use.--A contracting officer shall make a 
     determination whether two-phase selection procedures are 
     appropriate for use for entering into a contract for the 
     design and construction of a public building, facility, or 
     work when--
       (1) the contracting officer anticipates that 3 or more 
     offers will be received for the contract;
       (2) design work must be performed before an offeror can 
     develop a price or cost proposal for the contract;
       (3) the offeror will incur a substantial amount of expense 
     in preparing the offer; and
       (4) the contracting officer has considered information such 
     as the following:
       (A) The extent to which the project requirements have been 
     adequately defined.
       (B) The time constraints for delivery of the project.
       (C) The capability and experience of potential contractors.
       (D) The suitability of the project for use of the two-phase 
     selection procedures.
       (E) The capability of the agency to manage the two-phase 
     selection process.
       (F) Other criteria established by the agency.
       (c) Procedures Described.--Two-phase selection procedures 
     consist of the following:
       (1) Development of scope of work statement.--The agency 
     develops, either in-house or by contract, a scope of work 
     statement for inclusion in the solicitation that defines the 
     project and provides prospective offerors with sufficient 
     information regarding the Federal Government's requirements 
     (which may include criteria and preliminary design, budget 
     parameters, and schedule or delivery requirements) to enable 
     the offerors to submit proposals that meet the Federal 
     Government's needs. If the agency contracts for development 
     of the scope of work statement, the agency shall contract for 
     architectural and engineering services as defined by and in 
     accordance with sections 1101 to 1104 of title 40.
       (2) Solicitation of phase-one proposals.--The contracting 
     officer solicits phase-one proposals that--
       (A) include information on the offeror's--
       (i) technical approach; and
       (ii) technical qualifications; and
       (B) do not include--
       (i) detailed design information; or
       (ii) cost or price information.
       (3) Evaluation factors.--The evaluation factors to be used 
     in evaluating phase-one proposals are stated in the 
     solicitation and include specialized experience and technical 
     competence, capability to perform, past performance of the 
     offeror's team (including the architect-engineer and 
     construction members of the team), and other appropriate 
     factors, except that cost-related or price-related evaluation 
     factors are not permitted. Each solicitation establishes the 
     relative importance assigned to the evaluation factors and 
     subfactors that must be considered in the evaluation of 
     phase-one proposals. The agency evaluates phase-one proposals 
     on the basis of the phase-one evaluation factors set forth in 
     the solicitation.
       (4) Selection by contracting officer.--
       (A) Number of offerors selected and what is to be 
     evaluated.--The contracting officer selects as the most 
     highly qualified the number of offerors specified in the 
     solicitation to provide the property or services under the 
     contract and requests the selected offerors to submit phase-
     two competitive proposals that include technical proposals 
     and cost or price information. Each solicitation establishes 
     with respect to phase two--
       (i) the technical submission for the proposal, including 
     design concepts or proposed solutions to requirements 
     addressed within the scope of work, or both; and
       (ii) the evaluation factors and subfactors, including cost 
     or price, that must be considered in the evaluations of 
     proposals in accordance with subsections (b) to (d) of 
     section 3306 of this title.
       (B) Separate evaluations.--The contracting officer 
     separately evaluates the submissions described in clauses (i) 
     and (ii) of subparagraph (A).
       (5) Awarding of contract.--The agency awards the contract 
     in accordance with chapter 37 of this title.
       (d) Solicitation To State Number of Offerors To Be Selected 
     for Phase-Two Requests for Competitive Proposals.--A 
     solicitation issued pursuant to the procedures described in 
     subsection (c) shall state the maximum number of offerors 
     that are to be selected to submit competitive proposals 
     pursuant to subsection (c)(4). The maximum number specified 
     in the solicitation shall not exceed 5 unless the agency 
     determines with respect to an individual solicitation that a 
     specified number greater than 5 is in the Federal 
     Government's interest and is consistent with the purposes and 
     objectives of the two-phase selection process.
       (e) Requirement for Guidance and Regulations.--The Federal 
     Acquisition Regulation shall include guidance--
       (1) regarding the factors that may be considered in 
     determining whether the two-phase contracting procedures 
     authorized by subsection (a) are appropriate for use in 
     individual contracting situations;
       (2) regarding the factors that may be used in selecting 
     contractors; and
       (3) providing for a uniform approach to be used Government-
     wide.

     Sec. 3310. Quantities to order

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

     Sec. 3311. Qualification requirement

       (a) Definition.--In this section, the term ``qualification 
     requirement'' means a requirement for testing or other 
     quality assurance demonstration that must be completed by an 
     offeror before award of a contract.
       (b) Actions Before Enforcing Qualification Requirement.--
     Except as provided in subsection (c), the head of an agency, 
     before enforcing any qualification requirement, shall--
       (1) prepare a written justification stating the necessity 
     for establishing the qualification requirement and specify 
     why the qualification requirement must be demonstrated before 
     contract award;
       (2) specify in writing and make available to a potential 
     offeror on request all requirements that a prospective 
     offeror, or its product, must satisfy to become qualified, 
     with those requirements to be limited to those least 
     restrictive to meet the purposes necessitating the 
     establishment of the qualification requirement;
       (3) specify an estimate of the cost of testing and 
     evaluation likely to be incurred by a potential offeror to 
     become qualified;
       (4) ensure that a potential offeror is provided, on 
     request, a prompt opportunity to demonstrate at its own 
     expense (except as provided in subsection (d)) its ability to 
     meet the standards specified for qualification using--
       (A) qualified personnel and facilities--
       (i) of the agency concerned;
       (ii) of another agency obtained through interagency 
     agreement; or
       (iii) under contract; or
       (B) other methods approved by the agency (including use of 
     approved testing and evaluation services not provided under 
     contract to the agency);
       (5) if testing and evaluation services are provided under 
     contract to the agency for the purposes of paragraph (4), 
     provide to the extent possible that those services be 
     provided by a contractor that--
       (A) is not expected to benefit from an absence of 
     additional qualified sources; and

[[Page 11793]]

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

               CHAPTER 35--TRUTHFUL COST AND PRICING DATA

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

     Sec. 3501. General

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

     Sec. 3502. Required cost or pricing data and certification

       (a) When Required.--The head of an executive agency shall 
     require offerors, contractors, and subcontractors to make 
     cost or pricing data available as follows:
       (1) Offeror for prime contract.--An offeror for a prime 
     contract under this division to be entered into using 
     procedures other than sealed-bid procedures shall be required 
     to submit cost or pricing data before the award of a contract 
     if--
       (A) in the case of a prime contract entered into after 
     October 13, 1994, the price of the contract to the Federal 
     Government is expected to exceed $500,000; and
       (B) in the case of a prime contract entered into on or 
     before October 13, 1994, the price of the contract to the 
     Federal Government is expected to exceed $100,000.
       (2) Contractor.--The contractor for a prime contract under 
     this division shall be required to submit cost or pricing 
     data before the pricing of a change or modification to the 
     contract if--
       (A) in the case of a change or modification made to a prime 
     contract referred to in paragraph (1)(A), the price 
     adjustment is expected to exceed $500,000;
       (B) in the case of a change or modification made to a prime 
     contract that was entered into on or before October 13, 1994, 
     and that has been modified pursuant to subsection (f), the 
     price adjustment is expected to exceed $500,000; and
       (C) in the case of a change or modification not covered by 
     subparagraph (A) or (B), the price adjustment is expected to 
     exceed $100,000.
       (3) Offeror for subcontract.--An offeror for a subcontract 
     (at any tier) of a contract under this division shall be 
     required to submit cost or pricing data before the award of 
     the subcontract if the prime contractor and each higher-tier 
     subcontractor have been required to make available cost or 
     pricing data under this chapter and--
       (A) in the case of a subcontract under a prime contract 
     referred to in paragraph (1)(A), the price of the subcontract 
     is expected to exceed $500,000;
       (B) in the case of a subcontract entered into under a prime 
     contract that was entered into on or before October 13, 1994, 
     and that

[[Page 11794]]

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

     Sec. 3503. Exceptions

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

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

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

     Sec. 3505. Submission of other information

       (a) Authority To Require Submission.--When certified cost 
     or pricing data are not required to be submitted under this 
     chapter for a contract, subcontract, or modification of a 
     contract or subcontract, the contracting officer shall 
     require submission of data other than certified cost or 
     pricing data to the extent necessary to determine the 
     reasonableness of the price of the contract, subcontract, or 
     modification of the contract or subcontract. Except in the 
     case of a contract or subcontract covered by the exceptions 
     in section 3503(a)(1) of this title, the contracting officer 
     shall require that the data submitted include, at a minimum, 
     appropriate information on the prices at which the same item 
     or similar items have previously been sold that is adequate 
     for evaluating the reasonableness of the price for the 
     procurement.
       (b) Limitations on Authority.--The Federal Acquisition 
     Regulation shall include the following provisions regarding 
     the types of information that contracting officers may 
     require under subsection (a):
       (1) Reasonable limitations.--Reasonable limitations on 
     requests for sales data relating to commercial items.
       (2) Limitation on scope of request.--A requirement that a 
     contracting officer limit, to the maximum extent practicable, 
     the scope of any request for information relating to 
     commercial items from an offeror to only that information 
     that is in the form regularly maintained by the offeror in 
     commercial operations.
       (3) Information not to be disclosed.--A statement that any 
     information received relating to commercial items that is 
     exempt from disclosure under section 552(b) of title 5 shall 
     not be disclosed by the Federal Government.

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

       (a) Provision Requiring Adjustment.--
       (1) In general.--A prime contract (or change or 
     modification to a prime contract) under which a certificate 
     under section 3502(b) of this title is required shall contain 
     a provision that the price of the contract to the Federal 
     Government, including profit or fee, shall be adjusted to 
     exclude any significant amount by which it may be determined 
     by the head of the executive agency that the price was 
     increased because the contractor (or any subcontractor 
     required to make the certificate available) submitted 
     defective cost or pricing data.
       (2) What constitutes defective cost or pricing data.--For 
     the purposes of this chapter, defective cost or pricing data 
     are cost or pricing data that, as of the date of agreement on 
     the price of the contract (or another date agreed on between 
     the parties), were inaccurate, incomplete, or noncurrent. If 
     for purposes of the preceding sentence the parties agree on a 
     date other than the date of agreement on the price of the 
     contract, the date agreed on by the parties shall be as close 
     to the date of agreement on the price of the contract as is 
     practicable.
       (b) Valid Defense.--In determining for purposes of a 
     contract price adjustment under a contract provision required 
     by subsection (a) whether, and to what extent, a contract 
     price was increased because the contractor (or a 
     subcontractor) submitted defective cost or pricing data, it 
     is a defense that the Federal Government did not rely on the 
     defective data submitted by the contractor or subcontractor.
       (c) Invalid Defenses.--It is not a defense to an adjustment 
     of the price of a contract under a contract provision 
     required by subsection (a) that--
       (1) the price of the contract would not have been modified 
     even if accurate, complete, and current cost or pricing data 
     had been submitted by the contractor or subcontractor because 
     the contractor or subcontractor--
       (A) was the sole source of the property or services 
     procured; or
       (B) otherwise was in a superior bargaining position with 
     respect to the property or services procured;

[[Page 11795]]

       (2) the contracting officer should have known that the cost 
     or pricing data in issue were defective even though the 
     contractor or subcontractor took no affirmative action to 
     bring the character of the data to the attention of the 
     contracting officer;
       (3) the contract was based on an agreement between the 
     contractor and the Federal Government about the total cost of 
     the contract and there was no agreement about the cost of 
     each item procured under the contract; or
       (4) the prime contractor or subcontractor did not submit a 
     certification of cost or pricing data relating to the 
     contract as required by section 3502(b) of this title.
       (d) Offsets.--
       (1) When allowed.--A contractor shall be allowed to offset 
     an amount against the amount of a contract price adjustment 
     under a contract provision required by subsection (a) if--
       (A) the contractor certifies to the contracting officer (or 
     to a designated representative of the contracting officer) 
     that, to the best of the contractor's knowledge and belief, 
     the contractor is entitled to the offset; and
       (B) the contractor proves that the cost or pricing data 
     were available before the date of agreement on the price of 
     the contract (or price of the modification), or, if 
     applicable, consistent with subsection (a)(2), another date 
     agreed on by the parties, and that the data were not 
     submitted as specified in section 3502(c) of this title 
     before that date.
       (2) When not allowed.--A contractor shall not be allowed to 
     offset an amount otherwise authorized to be offset under 
     paragraph (1) if--
       (A) the certification under section 3502(b) of this title 
     with respect to the cost or pricing data involved was known 
     to be false when signed; or
       (B) the Federal Government proves that, had the cost or 
     pricing data referred to in paragraph (1)(B) been submitted 
     to the Federal Government before date of agreement on the 
     price of the contract (or price of the modification), or, if 
     applicable, under subsection (a)(2), another date agreed on 
     by the parties, the submission of the cost or pricing data 
     would not have resulted in an increase in that price in the 
     amount to be offset.

     Sec. 3507. Interest and penalties for certain overpayments

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

     Sec. 3508. Right to examine contractor records

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

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

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

                   CHAPTER 37--AWARDING OF CONTRACTS

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

     Sec. 3701. Basis of award and rejection

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

     Sec. 3702. Sealed bids

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

     Sec. 3703. Competitive proposals

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

     Sec. 3704. Post-award debriefings

       (a) Request for Debriefing.--When a contract is awarded by 
     the head of an executive agency on the basis of competitive 
     proposals, an unsuccessful offeror, on written request 
     received by the agency within 3 days after the date on which 
     the unsuccessful offeror receives the notification of the 
     contract award, shall be debriefed and furnished the basis 
     for the selection decision and contract award.
       (b) When Debriefing To Be Conducted.--The executive agency 
     shall debrief the offeror within, to the maximum extent 
     practicable, 5 days after receipt of the request by the 
     executive agency.
       (c) Information To Be Provided.--The debriefing shall 
     include, at a minimum--
       (1) the executive agency's evaluation of the significant 
     weak or deficient factors in the offeror's offer;
       (2) the overall evaluated cost and technical rating of the 
     offer of the contractor awarded the contract and the overall 
     evaluated cost and technical rating of the offer of the 
     debriefed offeror;
       (3) the overall ranking of all offers;
       (4) a summary of the rationale for the award;
       (5) in the case of a proposal that includes a commercial 
     item that is an end item under the contract, the make and 
     model of the item being provided in accordance with the offer 
     of the contractor awarded the contract; and
       (6) reasonable responses to relevant questions posed by the 
     debriefed offeror as to whether source selection procedures 
     set forth in the solicitation, applicable regulations, and 
     other applicable authorities were followed by the executive 
     agency.
       (d) Information Not To Be Included.--The debriefing may not 
     include point-by-

[[Page 11796]]

     point comparisons of the debriefed offeror's offer with other 
     offers and may not disclose any information that is exempt 
     from disclosure under section 552(b) of title 5.
       (e) Inclusion of Statement in Solicitation.--Each 
     solicitation for competitive proposals shall include a 
     statement that information described in subsection (c) may be 
     disclosed in post-award debriefings.
       (f) After Successful Protest.--If, within one year after 
     the date of the contract award and as a result of a 
     successful procurement protest, the executive agency seeks to 
     fulfill the requirement under the protested contract either 
     on the basis of a new solicitation of offers or on the basis 
     of new best and final offers requested for that contract, the 
     head of the executive agency shall make available to all 
     offerors--
       (1) the information provided in debriefings under this 
     section regarding the offer of the contractor awarded the 
     contract; and
       (2) the same information that would have been provided to 
     the original offerors.
       (g) Summary To Be Included in File.--The contracting 
     officer shall include a summary of the debriefing in the 
     contract file.

     Sec. 3705. Pre-award debriefings

       (a) Request for Debriefing.--When the contracting officer 
     excludes an offeror submitting a competitive proposal from 
     the competitive range (or otherwise excludes that offeror 
     from further consideration prior to the final source 
     selection decision), the excluded offeror may request in 
     writing, within 3 days after the date on which the excluded 
     offeror receives notice of its exclusion, a debriefing prior 
     to award.
       (b) When Debriefing To Be Conducted.--The contracting 
     officer shall make every effort to debrief the unsuccessful 
     offeror as soon as practicable but may refuse the request for 
     a debriefing if it is not in the best interests of the 
     Federal Government to conduct a debriefing at that time.
       (c) Precondition for Post-Award Debriefing.--The 
     contracting officer is required to debrief an excluded 
     offeror in accordance with section 3704 of this title only if 
     that offeror requested and was refused a pre-award debriefing 
     under subsections (a) and (b).
       (d) Information To Be Provided.--The debriefing conducted 
     under this section shall include--
       (1) the executive agency's evaluation of the significant 
     elements in the offeror's offer;
       (2) a summary of the rationale for the offeror's exclusion; 
     and
       (3) reasonable responses to relevant questions posed by the 
     debriefed offeror as to whether source selection procedures 
     set forth in the solicitation, applicable regulations, and 
     other applicable authorities were followed by the executive 
     agency.
       (e) Information Not To Be Disclosed.--The debriefing 
     conducted pursuant to this section may not disclose the 
     number or identity of other offerors and shall not disclose 
     information about the content, ranking, or evaluation of 
     other offerors' proposals.
       (f) Summary To Be Included in File.--The contracting 
     officer shall include a summary of the debriefing in the 
     contract file.

     Sec. 3706. Encouragement of alternative dispute resolution

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

     Sec. 3707. Antitrust violations

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

     Sec. 3708. Protests

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

                CHAPTER 39--SPECIFIC TYPES OF CONTRACTS

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

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

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

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

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

     Sec. 3903. Multiyear contracts

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

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

       (a) Comptroller General.--The Comptroller General may use 
     available funds to enter into contracts for the procurement 
     of severable services for a period that begins in one fiscal 
     year and ends in the next fiscal year and to enter into 
     multiyear contracts for the acquisition of property and 
     nonaudit-

[[Page 11797]]

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

     Sec. 3905. Cost contracts

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

     Sec. 3906. Cost-reimbursement contracts

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

             CHAPTER 41--TASK AND DELIVERY ORDER CONTRACTS

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

     Sec. 4101. Definitions

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

     Sec. 4102. Authorities or responsibilities not affected

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

     Sec. 4103. General authority

       (a) Authority To Award.--Subject to the requirements of 
     this section, section 4106 of this title, and other 
     applicable law, the head of an executive agency may enter 
     into a task or delivery order contract for procurement of 
     services or property.
       (b) Solicitation.--The solicitation for a task or delivery 
     order contract shall include--
       (1) the period of the contract, including the number of 
     options to extend the contract and the period for which the 
     contract may be extended under each option;
       (2) the maximum quantity or dollar value of the services or 
     property to be procured under the contract; and
       (3) a statement of work, specifications, or other 
     description that reasonably describes

[[Page 11798]]

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

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

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

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

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

     Sec. 4105. Advisory and assistance services

       (a) Definition.--In this section, the term ``advisory and 
     assistance services'' has the same meaning given that term in 
     section 1105(g) of title 31.
       (b) Authority To Award.--
       (1) In general.--Subject to the requirements of this 
     section, section 4106 of this title, and other applicable 
     law, the head of an executive agency may enter into a task 
     order contract for procurement of advisory and assistance 
     services.
       (2) Only under this section.--The head of an executive 
     agency may enter into a task order contract for advisory and 
     assistance services only under this section.
       (c) Contract Period.--
       (1) Contract not to exceed 5 years.--The period of a task 
     order contract entered into under this section, including all 
     periods of extensions of the contract under options, 
     modifications, or otherwise, may not exceed 5 years unless a 
     longer period is specifically authorized in a law that is 
     applicable to the contract.
       (2) Waiver authority to extend contract.--
       (A) When waiver may be issued.--The head of an executive 
     agency may issue a waiver to extend a task order contract 
     entered into under this section for a period not exceeding 10 
     years, through 5 one-year options, if the head of the agency 
     determines in writing--
       (i) that the contract provides engineering or technical 
     services of such a unique and substantial technical nature 
     that award of a new contract would be harmful to the 
     continuity of the program for which the services are 
     performed;
       (ii) that award of a new contract would create a large 
     disruption in services provided to the executive agency; and
       (iii) that the executive agency would, through award of a 
     new contract, endure program risk during critical program 
     stages due to loss of program corporate knowledge of ongoing 
     program activities.
       (B) Delegation.--The authority of the head of an executive 
     agency under subparagraph (A) may be delegated only to the 
     Chief Acquisition Officer of the agency (or the senior 
     procurement executive in the case of an agency for which a 
     Chief Acquisition Officer has not been appointed or 
     designated under section 1702(a) of this title).
       (C) Report.--Not later than April 1, 2007, the 
     Administrator shall submit to the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Oversight and Government Reform of the House of 
     Representatives a report on advisory and assistance services. 
     The report shall include the following information:
       (i) The methods used by executive agencies to identify a 
     contract as an advisory and assistance services contract, as 
     defined in subsection (a).
       (ii) The number of advisory and assistance services 
     contracts awarded by each executive agency during the 5-year 
     period preceding October 17, 2006.
       (iii) The average annual expenditures by each executive 
     agency for advisory and assistance services contracts.
       (iv) The average length of advisory and assistance services 
     contracts.
       (v) The number of advisory and assistance services 
     contracts recompeted and awarded to the previous award 
     winner.
       (D) Prohibition on use of authority by executive agencies 
     if report not submitted.--The head of an executive agency may 
     not issue a waiver under subparagraph (A) if the report 
     required by subparagraph (C) is not submitted by April 1, 
     2007.
       (E) Termination of authority.--A waiver may not be issued 
     under this paragraph after December 31, 2011.
       (d) Content of Notice.--The notice required by section 1708 
     of this title and section 8(e) of the Small Business Act (15 
     U.S.C. 637(e)) shall reasonably and fairly describe the 
     general scope, magnitude, and duration of the proposed task 
     order contract in a manner that would reasonably enable a 
     potential offeror to decide whether to request the 
     solicitation and consider submitting an offer.
       (e) Required Content of Solicitation and Contract.--
       (1) Solicitation.--The solicitation shall include the 
     information (regarding services) described in section 4103(b) 
     of this title.
       (2) Contract.--A task order contract entered into under 
     this section shall contain

[[Page 11799]]

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

     Sec. 4106. Orders

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

                      CHAPTER 43--ALLOWABLE COSTS

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

     Sec. 4301. Definitions

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

     Sec. 4302. Adjustment of threshold amount of covered contract

       Effective on October 1 of each year that is divisible by 5, 
     the amount set forth in section 4301(2) of this title shall 
     be adjusted to

[[Page 11800]]

     the equivalent amount in constant fiscal year 1994 dollars. 
     An adjusted amount that is not evenly divisible by $50,000 
     shall be rounded to the nearest multiple of $50,000. If an 
     amount is evenly divisible by $25,000 but is not evenly 
     divisible by $50,000, the amount shall be rounded to the next 
     higher multiple of $50,000.

     Sec. 4303. Effect of submission of unallowable costs

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

     Sec. 4304. Specific costs not allowable

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

     Sec. 4305. Required regulations

       (a) In General.--The Federal Acquisition Regulation shall 
     contain provisions on the allowability of contractor costs. 
     Those provisions shall define in detail and in specific terms 
     the costs that are unallowable, in whole or in part, under 
     covered contracts.
       (b) Specific Items.--The regulations shall, at a minimum, 
     clarify the cost principles applicable to contractor costs of 
     the following:

[[Page 11801]]

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

     Sec. 4306. Applicability of regulations to subcontractors

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

     Sec. 4307. Contractor certification

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

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

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

     Sec. 4309. Burden of proof on contractor

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

     Sec. 4310. Proceeding costs not allowable

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

                     CHAPTER 45--CONTRACT FINANCING

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

     Sec. 4501. Authority of executive agency

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

     Sec. 4502. Payment

       (a) Basis for Payment.--When practicable, payments under 
     section 4501 of this title shall be made on any of the 
     following bases:

[[Page 11802]]

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

     Sec. 4503. Security for advance payments

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

     Sec. 4504. Conditions for progress payments

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

     Sec. 4505. Payments for commercial items

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

     Sec. 4506. Action in case of fraud

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

                       CHAPTER 47--MISCELLANEOUS

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

     Sec. 4701. Determinations and decisions

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

     Sec. 4702. Prohibition on release of contractor proposals

       (a) Definition.--In this section, the term ``proposal'' 
     means a proposal, including a technical, management, or cost 
     proposal, submitted by a contractor in response to the 
     requirements of a solicitation for a competitive proposal.
       (b) Prohibition.--A proposal in the possession or control 
     of an executive agency may

[[Page 11803]]

     not be made available to any person under section 552 of 
     title 5.
       (c) Nonapplication.--Subsection (b) does not apply to a 
     proposal that is set forth or incorporated by reference in a 
     contract entered into between the agency and the contractor 
     that submitted the proposal.

     Sec. 4703. Validation of proprietary data restrictions

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

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

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

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

       (a) Definitions.--In this section:
       (1) Contract.--The term ``contract'' means a contract 
     awarded by the head of an executive agency.
       (2) Contractor.--The term ``contractor'' means a person 
     awarded a contract with an executive agency.
       (3) Inspector general.--The term ``Inspector General'' 
     means an Inspector General appointed under the Inspector 
     General Act of 1978 (5 U.S.C. App.).
       (b) Prohibition of Reprisals.--An employee of a contractor 
     may not be discharged, demoted, or otherwise discriminated 
     against as a reprisal for disclosing to a Member of Congress 
     or an authorized official of an executive agency or the 
     Department of Justice information relating to a substantial 
     violation of law related to a contract (including the 
     competition for, or negotiation of, a contract).
       (c) Investigation of Complaints.--An individual who 
     believes that the individual has been subjected to a reprisal 
     prohibited by subsection (b) may submit a complaint to the 
     Inspector General of the executive agency. Unless the 
     Inspector General determines that the complaint is frivolous, 
     the Inspector General shall investigate the complaint and, on 
     completion of the investigation, submit a report of the 
     findings of the investigation to the individual, the 
     contractor concerned, and the head of the agency. If the 
     executive agency does not have an Inspector General, the 
     duties of the Inspector General under this section shall be 
     performed by an official designated by the head of the 
     executive agency.
       (d) Remedy and Enforcement Authority.--
       (1) Actions contractor may be ordered to take.--If the head 
     of an executive agency determines that a contractor has 
     subjected an individual to a reprisal prohibited by 
     subsection (b), the head of the executive agency may take one 
     or more of the following actions:
       (A) Abatement.--Order the contractor to take affirmative 
     action to abate the reprisal.
       (B) Reinstatement.--Order the contractor to reinstate the 
     individual to the position that the individual held before 
     the reprisal, together with the compensation (including back 
     pay), employment benefits, and other terms and conditions of 
     employment that would apply to the individual in that 
     position if the reprisal had not been taken.
       (C) Payment.--Order the contractor to pay the complainant 
     an amount equal to the aggregate amount of all costs and 
     expenses (including attorneys' fees and expert witnesses' 
     fees) that the complainant reasonably incurred for, or in 
     connection with, bringing the complaint regarding the 
     reprisal, as determined by the head of the executive agency.
       (2) Enforcement order.--When a contractor fails to comply 
     with an order issued under paragraph (1), the head of the 
     executive agency shall file an action for enforcement of the 
     order in the United States district court for a district in 
     which the reprisal was found to have occurred. In an action 
     brought under this paragraph, the court may grant appropriate 
     relief, including injunctive relief and compensatory and 
     exemplary damages.
       (3) Review of enforcement order.--A person adversely 
     affected or aggrieved by an order issued under paragraph (1) 
     may obtain review of the order's conformance with this

[[Page 11804]]

     subsection, and regulations issued to carry out this section, 
     in the United States court of appeals for a circuit in which 
     the reprisal is alleged in the order to have occurred. A 
     petition seeking review must be filed no more than 60 days 
     after the head of the agency issues the order. Review shall 
     conform to chapter 7 of title 5.
       (e) Scope of Section.--This section does not--
       (1) authorize the discharge of, demotion of, or 
     discrimination against an employee for a disclosure other 
     than a disclosure protected by subsection (b); or
       (2) modify or derogate from a right or remedy otherwise 
     available to the employee.

     Sec. 4706. Examination of facilities and records of 
       contractor

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

     Sec. 4707. Remission of liquidated damages

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

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

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

     Sec. 4709. Implementation of electronic commerce capability

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

     Sec. 4710. Limitations on tiering of subcontractors

       (a) Definition.--In this section, the term ``executive 
     agency'' has the same meaning given in section 133 of this 
     title.
       (b) Regulations.--For executive agencies other than the 
     Department of Defense, the Federal Acquisition Regulation 
     shall--
       (1) require contractors to minimize the excessive use of 
     subcontractors, or of tiers of subcontractors, that add no or 
     negligible value; and
       (2) ensure that neither a contractor nor a subcontractor 
     receives indirect costs or profit on work performed by a 
     lower-tier subcontractor to which the higher-tier contractor 
     or subcontractor adds no or negligible value (but not to 
     limit charges for indirect costs and profit based on the 
     direct costs of managing lower-tier subcontracts).
       (c) Covered Contracts.--This section applies to any cost-
     reimbursement type contract or task or delivery order in an 
     amount

[[Page 11805]]

     greater than the simplified acquisition threshold (as defined 
     by section 134 of this title).
       (d) Rule of Construction.--Nothing in this section shall be 
     construed as limiting the ability of the Department of 
     Defense to implement more restrictive limitations on the 
     tiering of subcontractors.
       (e) Applicability.--The Department of Defense shall 
     continue to be subject to guidance on limitations on tiering 
     of subcontractors issued by the Department of Defense 
     pursuant to section 852 of the John Warner National Defense 
     Authorization Act for Fiscal Year 2007 (Public Law 109-364, 
     10 U.S.C. 2324 note).

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

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

         Subtitle II--Other Advertising and Contract Provisions

Chapter                                                        Sec.

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

                        CHAPTER 61--ADVERTISING

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

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

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

     Sec. 6102. Exceptions from advertising requirement

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

     Sec. 6103. Opening of bids

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

                CHAPTER 63--GENERAL CONTRACT PROVISIONS

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

     Sec. 6301. Authorization requirement

       (a) In General.--A contract or purchase on behalf of the 
     Federal Government shall not be made unless the contract or 
     purchase is authorized by law or is under an appropriation 
     adequate to its fulfillment.
       (b) Exception.--
       (1) Definition.--In this subsection, the term ``defined 
     Secretary'' means--
       (A) the Secretary of Defense; or
       (B) the Secretary of Homeland Security with respect to the 
     Coast Guard when the Coast Guard is not operating as a 
     service in the Navy.
       (2) In general.--Subsection (a) does not apply to a 
     contract or purchase made by a defined Secretary for 
     clothing, subsistence, forage, fuel, quarters, 
     transportation, or medical and hospital supplies.
       (3) Current year limitation.--A contract or purchase made 
     by a defined Secretary

[[Page 11806]]

     under this subsection may not exceed the necessities of the 
     current year.
       (4) Reports.--The defined Secretary shall immediately 
     advise Congress when authority is exercised under this 
     subsection. The defined Secretary shall report quarterly on 
     the estimated obligations incurred pursuant to the authority 
     granted in this subsection.
       (c) Special Rule for Purchase of Land.--Land may not be 
     purchased by the Federal Government unless the purchase is 
     authorized by law.

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

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

     Sec. 6303. Certain contracts limited to appropriated amounts

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

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

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

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

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

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

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

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

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

     Sec. 6308. Contracts for transportation of Federal Government 
       securities

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

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

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

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

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

     Sec. 6501. Definitions

       In this chapter--
       (1) Agency of the united states.--The term ``agency of the 
     United States'' means

[[Page 11807]]

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

     Sec. 6502. Required contract terms

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

     Sec. 6503. Breach or violation of required contract terms

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

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

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

     Sec. 6505. Exclusions

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

     Sec. 6506. Administrative provisions

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

     Sec. 6507. Hearing authority and procedures

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

[[Page 11808]]

     conclusive for agencies of the United States. If supported by 
     a preponderance of the evidence, the findings are conclusive 
     in any court of the United States.
       (f) Decisions.--The Secretary or an impartial 
     representative designated by the Secretary may make 
     decisions, based on findings of fact, that are considered 
     necessary to enforce this chapter.

     Sec. 6508. Authority to make exceptions

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

     Sec. 6509. Other procedures

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

     Sec. 6510. Manufacturers and regular dealers

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

     Sec. 6511. Effect on other law

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

              CHAPTER 67--SERVICE CONTRACT LABOR STANDARDS

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

     Sec. 6701. Definitions

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

     Sec. 6702. Contracts to which this chapter applies

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

     Sec. 6703. Required contract terms

       A contract, and bid specification for a contract, to which 
     this chapter applies under section 6702 of this title shall 
     contain the following terms:
       (1) Minimum wage.--The contract and bid specification shall 
     contain a provision specifying the minimum wage to be paid to 
     each class of service employee engaged in the performance of 
     the contract or any subcontract, as determined by the 
     Secretary or the Secretary's authorized representative, in 
     accordance with prevailing rates in the locality, or, where a 
     collective-bargaining agreement covers the service employees, 
     in accordance with the rates provided for in the agreement, 
     including prospective wage increases provided for in the 
     agreement as a result of arm's length negotiations. In any 
     case the minimum wage may not be less than the minimum wage 
     specified in section 6704 of this title.
       (2) Fringe benefits.--The contract and bid specification 
     shall contain a provision specifying the fringe benefits to 
     be provided to each class of service employee engaged in the 
     performance of the contract or any subcontract, as determined 
     by the Secretary or the Secretary's authorized representative 
     to be prevailing in the locality, or, where a collective-
     bargaining agreement covers the service employees, to be 
     provided for under the agreement, including prospective 
     fringe benefit increases provided for in the agreement as a 
     result of arm's-length negotiations. The fringe benefits 
     shall include medical or hospital care, pensions on 
     retirement or death, compensation for injuries or illness 
     resulting from occupational activity, or insurance to provide 
     any of the foregoing, unemployment benefits, life insurance, 
     disability and sickness insurance, accident insurance, 
     vacation and holiday pay, costs of apprenticeship or other 
     similar programs and other bona fide fringe benefits not 
     otherwise required by Federal, State, or local law to be 
     provided by the contractor or subcontractor. The obligation 
     under this paragraph may be discharged by furnishing any 
     equivalent combinations of fringe benefits or by making 
     equivalent or differential payments in cash under regulations 
     established by the Secretary.
       (3) Working conditions.--The contract and bid specification 
     shall contain a provision specifying that no part of the 
     services covered by this chapter may be performed in 
     buildings or surroundings or under working

[[Page 11809]]

     conditions, provided by or under the control or supervision 
     of the contractor or any subcontractor, which are unsanitary 
     or hazardous or dangerous to the health or safety of service 
     employees engaged to provide the services.
       (4) Notice.--The contract and bid specification shall 
     contain a provision specifying that on the date a service 
     employee begins work on a contract to which this chapter 
     applies, the contractor or subcontractor will deliver to the 
     employee a notice of the compensation required under 
     paragraphs (1) and (2), on a form prepared by the Federal 
     agency, or will post a notice of the required compensation in 
     a prominent place at the worksite.
       (5) General schedule pay rates and prevailing rate 
     systems.--The contract and bid specification shall contain a 
     statement of the rates that would be paid by the Federal 
     agency to each class of service employee if section 5332 or 
     5341 of title 5 were applicable to them. The Secretary shall 
     give due consideration to these rates in making the wage and 
     fringe benefit determinations specified in this section.

     Sec. 6704. Limitation on minimum wage

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

     Sec. 6705. Violations

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

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

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

     Sec. 6707. Enforcement and administration of chapter

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

                    Subtitle III--Contract Disputes

Chapter                                                        Sec.

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

                     CHAPTER 71--CONTRACT DISPUTES

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

     Sec. 7101. Definitions

       In this chapter:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator for Federal Procurement Policy appointed 
     pursuant to section 1102 of this title.
       (2) Agency board or agency board of contract appeals.--The 
     term ``agency board'' or ``agency board of contract appeals'' 
     means--
       (A) the Armed Services Board;
       (B) the Civilian Board;
       (C) the board of contract appeals of the Tennessee Valley 
     Authority; or
       (D) the Postal Service Board established under section 
     7105(d)(1) of this title.
       (3) Agency head.--The term ``agency head'' means the head 
     and any assistant head of an executive agency. The term may 
     include the chief official of a principal division of an 
     executive agency if the head of the executive agency so 
     designates that chief official.
       (4) Armed services board.--The term ``Armed Services 
     Board'' means the Armed Services Board of Contract Appeals 
     established under section 7105(a)(1) of this title.
       (5) Civilian board.--The term ``Civilian Board'' means the 
     Civilian Board of Contract

[[Page 11810]]

     Appeals established under section 7105(b)(1) of this title.
       (6) Contracting officer.--The term ``contracting 
     officer''--
       (A) means an individual who, by appointment in accordance 
     with applicable regulations, has the authority to make and 
     administer contracts and to make determinations and findings 
     with respect to contracts; and
       (B) includes an authorized representative of the 
     contracting officer, acting within the limits of the 
     representative's authority.
       (7) Contractor.--The term ``contractor'' means a party to a 
     Federal Government contract other than the Federal 
     Government.
       (8) Executive agency.--The term ``executive agency'' 
     means--
       (A) an executive department as defined in section 101 of 
     title 5;
       (B) a military department as defined in section 102 of 
     title 5;
       (C) an independent establishment as defined in section 104 
     of title 5, except that the term does not include the 
     Government Accountability Office; and
       (D) a wholly owned Government corporation as defined in 
     section 9101(3) of title 31.
       (9) Misrepresentation of fact.--The term 
     ``misrepresentation of fact'' means a false statement of 
     substantive fact, or conduct that leads to a belief of a 
     substantive fact material to proper understanding of the 
     matter in hand, made with intent to deceive or mislead.

     Sec. 7102. Applicability of chapter

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

     Sec. 7103. Decision by contracting officer

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

[[Page 11811]]

       (A) Contracting officer.--A contracting officer who rejects 
     a contractor's request for alternative dispute resolution 
     proceedings shall provide the contractor with a written 
     explanation, citing one or more of the conditions in section 
     572(b) of title 5 or other specific reasons that alternative 
     dispute resolution procedures are inappropriate.
       (B) Contractor.--A contractor that rejects an agency's 
     request for alternative dispute resolution proceedings shall 
     inform the agency in writing of the contractor's specific 
     reasons for rejecting the request.

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

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

     Sec. 7105. Agency boards

       (a) Armed Services Board.--
       (1) Establishment.--An Armed Services Board of Contract 
     Appeals may be established within the Department of Defense 
     when the Secretary of Defense, after consultation with the 
     Administrator, determines from a workload study that the 
     volume of contract claims justifies the establishment of a 
     full-time agency board of at least 3 members who shall have 
     no other inconsistent duties. Workload studies will be 
     updated at least once every 3 years and submitted to the 
     Administrator.
       (2) Appointment of members and compensation.--Members of 
     the Armed Services Board shall be selected and appointed in 
     the same manner as administrative law judges appointed 
     pursuant to section 3105 of title 5, with an additional 
     requirement that members must have had at least 5 years of 
     experience in public contract law. The Secretary of Defense 
     shall designate the chairman and vice chairman of the Armed 
     Services Board from among the appointed members. Compensation 
     for the chairman, vice chairman, and other members shall be 
     determined under section 5372a of title 5.
       (b) Civilian Board.--
       (1) Establishment.--There is established in the General 
     Services Administration the Civilian Board of Contract 
     Appeals.
       (2) Membership.--
       (A) Eligibility.--The Civilian Board consists of members 
     appointed by the Administrator of General Services (in 
     consultation with the Administrator for Federal Procurement 
     Policy) from a register of applicants maintained by the 
     Administrator of General Services, in accordance with rules 
     issued by the Administrator of General Services (in 
     consultation with the Administrator for Federal Procurement 
     Policy) for establishing and maintaining a register of 
     eligible applicants and selecting Civilian Board members. The 
     Administrator of General Services shall appoint a member 
     without regard to political affiliation and solely on the 
     basis of the professional qualifications required to perform 
     the duties and responsibilities of a Civilian Board member.
       (B) Appointment of members and compensation.--Members of 
     the Civilian Board shall be selected and appointed to serve 
     in the same manner as administrative law judges appointed 
     pursuant to section 3105 of title 5, with an additional 
     requirement that members must have had at least 5 years 
     experience in public contract law. Compensation for the 
     members shall be determined under section 5372a of title 5.
       (3) Removal.--Members of the Civilian Board are subject to 
     removal in the same manner as administrative law judges, as 
     provided in section 7521 of title 5.
       (4) Functions.--
       (A) In general.--The Civilian Board has jurisdiction as 
     provided by subsection (e)(1)(B).
       (B) Additional jurisdiction.--With the concurrence of the 
     Federal agencies affected, the Civilian Board may assume--
       (i) jurisdiction over any additional category of laws or 
     disputes over which an agency board of contract appeals 
     established pursuant to section 8 of the Contract Disputes 
     Act exercised jurisdiction before January 6, 2007; and
       (ii) any other function the agency board performed before 
     January 6, 2007, on behalf of those agencies.
       (c) Tennessee Valley Authority Board.--
       (1) Establishment.--The Board of Directors of the Tennessee 
     Valley Authority may establish a board of contract appeals of 
     the Tennessee Valley Authority of an indeterminate number of 
     members.
       (2) Appointment of members and compensation.--The Board of 
     Directors of the Tennessee Valley Authority shall establish 
     criteria for the appointment of members to the agency board 
     established under paragraph (1), and shall designate a 
     chairman of the agency board. The chairman and other members 
     of the agency board shall receive compensation, at the daily 
     equivalent of the rates determined under section 5372a of 
     title 5, for each day they are engaged in the actual 
     performance of their duties as members of the agency board.
       (d) Postal Service Board.--
       (1) Establishment.--There is established an agency board of 
     contract appeals known as the Postal Service Board of 
     Contract Appeals.
       (2) Appointment and service of members.--The Postal Service 
     Board of Contract Appeals consists of judges appointed by the 
     Postmaster General. The judges shall meet the qualifications 
     of and serve in the same manner as members of the Civilian 
     Board.
       (3) Application.--This chapter applies to contract disputes 
     before the Postal Service Board of Contract Appeals in the 
     same manner as it applies to contract disputes before the 
     Civilian Board.
       (e) Jurisdiction.--
       (1) In general.--
       (A) Armed services board.--The Armed Services Board has 
     jurisdiction to decide any appeal from a decision of a 
     contracting officer of the Department of Defense, the 
     Department of the Army, the Department of the Navy, the 
     Department of the Air Force, or the National Aeronautics and 
     Space Administration relative to a contract made by that 
     department or agency.
       (B) Civilian board.--The Civilian Board has jurisdiction to 
     decide any appeal from a decision of a contracting officer of 
     any executive agency (other than the Department of Defense, 
     the Department of the Army, the Department of the Navy, the 
     Department of the Air Force, the National Aeronautics and 
     Space Administration, the United States Postal Service, the 
     Postal Regulatory Commission, or the Tennessee Valley 
     Authority) relative to a contract made by that agency.
       (C) Postal service board.--The Postal Service Board of 
     Contract Appeals has jurisdiction to decide any appeal from a 
     decision of a contracting officer of the United States Postal 
     Service or the Postal Regulatory Commission relative to a 
     contract made by either agency.
       (D) Other agency boards.--Each other agency board has 
     jurisdiction to decide any appeal from a decision of a 
     contracting officer relative to a contract made by its 
     agency.
       (2) Relief.--In exercising this jurisdiction, an agency 
     board may grant any relief that would be available to a 
     litigant asserting a contract claim in the United States 
     Court of Federal Claims.
       (f) Subpoena, Discovery, and Deposition.--A member of an 
     agency board of contract appeals may administer oaths to 
     witnesses, authorize depositions and discovery proceedings, 
     and require by subpoena the attendance of witnesses, and 
     production of books and papers, for the taking of testimony 
     or evidence by deposition or in the hearing of an appeal by 
     the agency board. In case of contumacy or refusal to obey a 
     subpoena by a person who resides, is found, or transacts 
     business within the jurisdiction of a United States district 
     court, the court, upon application of the agency board 
     through the Attorney General, or upon application by the 
     board of contract appeals of the Tennessee Valley Authority, 
     shall have jurisdiction to issue the person an order 
     requiring the person to appear before the agency board or a 
     member of the agency board, to produce evidence or to give 
     testimony, or both. Any failure of the person to obey the 
     order of the court may be punished by the court as contempt 
     of court.
       (g) Decisions.--An agency board shall--
       (1) to the fullest extent practicable provide informal, 
     expeditious, and inexpensive resolution of disputes;
       (2) issue a decision in writing or take other appropriate 
     action on each appeal submitted; and
       (3) mail or otherwise furnish a copy of the decision to the 
     contractor and the contracting officer.

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

       (a) Accelerated Procedure Where $100,000 or Less in 
     Dispute.--The rules of each agency board shall include a 
     procedure for the accelerated disposition of any appeal from 
     a decision of a contracting officer where the amount in 
     dispute is $100,000 or less. The accelerated procedure is 
     applicable at the sole election of the contractor. An appeal 
     under the accelerated procedure shall be resolved, whenever 
     possible, within 180 days from the date the contractor elects 
     to use the procedure.
       (b) Small Claims Procedure.--

[[Page 11812]]

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

     Sec. 7107. Judicial review of agency board decisions

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

     Sec. 7108. Payment of claims

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

     Sec. 7109. Interest

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

                       Subtitle IV--Miscellaneous

Chapter                                                        Sec.

     81. Drug-Free Workplace..................................     8101
     83. Buy American.........................................     8301
     85. Committee for Purchase From People Who Are Blind or 
           Severely Disabled..................................     8501
     87. Kickbacks............................................     8701

                    CHAPTER 81--DRUG-FREE WORKPLACE

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

     Sec. 8101. Definitions and construction

       (a) Definitions.--In this chapter:
       (1) Contractor.--The term ``contractor'' means the 
     department, division, or other unit of a person responsible 
     for the performance under the contract.
       (2) Controlled substance.--The term ``controlled 
     substance'' means a controlled substance in schedules I 
     through V of section 202 of the Comprehensive Drug Abuse 
     Prevention and Control Act of 1970 (21 U.S.C. 812).
       (3) Conviction.--The term ``conviction'' means a finding of 
     guilt (including a plea of nolo contendere), an imposition of 
     sentence, or both, by a judicial body charged with the 
     responsibility to determine violations of Federal or State 
     criminal drug statutes.
       (4) Criminal drug statute.--The term ``criminal drug 
     statute'' means a criminal statute involving manufacture, 
     distribution, dispensation, use, or possession of a 
     controlled substance.
       (5) Drug-free workplace.--The term ``drug-free workplace'' 
     means a site of an entity--
       (A) for the performance of work done in connection with a 
     specific contract or grant described in section 8102 or 8103 
     of this title; and

[[Page 11813]]

       (B) at which employees of the entity are prohibited from 
     engaging in the unlawful manufacture, distribution, 
     dispensation, possession, or use of a controlled substance in 
     accordance with the requirements of the Anti-Drug Abuse Act 
     of 1988 (Public Law 100-690, 102 Stat. 4181).
       (6) Employee.--The term ``employee'' means the employee of 
     a contractor or grantee directly engaged in the performance 
     of work pursuant to the contract or grant described in 
     section 8102 or 8103 of this title.
       (7) Federal agency.--The term ``Federal agency'' means an 
     agency as defined in section 552(f) of title 5.
       (8) Grantee.--The term ``grantee'' means the department, 
     division, or other unit of a person responsible for the 
     performance under the grant.
       (b) Construction.--This chapter does not require law 
     enforcement agencies to comply with this chapter if the head 
     of the agency determines it would be inappropriate in 
     connection with the agency's undercover operations.

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

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

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

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

     Sec. 8104. Employee sanctions and remedies

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

     Sec. 8105. Waiver

       (a) In General.--The head of an agency may waive a 
     suspension of payments, termination of the contract or grant, 
     or suspension or debarment of a contractor or grantee

[[Page 11814]]

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

     Sec. 8106. Regulations

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

                        CHAPTER 83--BUY AMERICAN

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

     Sec. 8301. Definitions

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

     Sec. 8302. American materials required for public use

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

     Sec. 8303. Contracts for public works

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

     Sec. 8304. Waiver rescission

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

     Sec. 8305. Annual report

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

[[Page 11815]]



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

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

     Sec. 8501. Definitions

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

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

       (a) Establishment.--There is a Committee for Purchase From 
     People Who Are Blind or Severely Disabled.
       (b) Composition.--The Committee consists of 15 members 
     appointed by the President as follows:
       (1) One officer or employee from each of the following, 
     nominated by the head of the department or agency:
       (A) The Department of Agriculture.
       (B) The Department of Defense.
       (C) The Department of the Army.
       (D) The Department of the Navy.
       (E) The Department of the Air Force.
       (F) The Department of Education.
       (G) The Department of Commerce.
       (H) The Department of Veterans Affairs.
       (I) The Department of Justice.
       (J) The Department of Labor.
       (K) The General Services Administration.
       (2) One member from individuals who are not officers or 
     employees of the Federal Government and who are conversant 
     with the problems incident to the employment of the blind.
       (3) One member from individuals who are not officers or 
     employees of the Federal Government and who are conversant 
     with the problems incident to the employment of other 
     severely disabled individuals.
       (4) One member from individuals who are not officers or 
     employees of the Federal Government and who represent blind 
     individuals employed in qualified nonprofit agencies for the 
     blind.
       (5) One member from individuals who are not officers or 
     employees of the Federal Government and who represent 
     severely disabled individuals (other than blind individuals) 
     employed in qualified nonprofit agencies for other severely 
     disabled individuals.
       (c) Terms of Office.--Members appointed under paragraph 
     (2), (3), (4), or (5) of subsection (b) shall be appointed 
     for terms of 5 years and may be reappointed if the member 
     meets the qualifications prescribed by those paragraphs.
       (d) Chairman.--The members of the Committee shall elect one 
     of the members to be Chairman.
       (e) Vacancy.--
       (1) Manner in which filled.--A vacancy in the membership of 
     the Committee shall be filled in the manner in which the 
     original appointment was made.
       (2) Unfulfilled term.--A member appointed under paragraph 
     (2), (3), (4), or (5) of subsection (b) to fill a vacancy 
     occurring prior to the expiration of the term for which the 
     predecessor was appointed shall be appointed only for the 
     remainder of the term. The member may serve after the 
     expiration of a term until a successor takes office.
       (f) Pay and Travel Expenses.--
       (1) Amount to which members are entitled.--Except as 
     provided in paragraph (2), members of the Committee are 
     entitled to receive the daily equivalent of the maximum 
     annual rate of basic pay payable under section 5376 of title 
     5 for each day (including travel-time) during which they 
     perform services for the Committee. A member is entitled to 
     travel expenses, including a per diem allowance instead of 
     subsistence, as provided under section 5703 of title 5.
       (2) Officers or employees of the federal government.--
     Members who are officers or employees of the Federal 
     Government may not receive additional pay because of their 
     service on the Committee.
        (g) Staff.--
       (1) Appointment and compensation.--Subject to rules the 
     Committee may adopt and to chapters 33 and 51 and subchapter 
     III of chapter 53 of title 5, the Chairman may appoint and 
     fix the pay of personnel the Committee determines are 
     necessary to assist it in carrying out this chapter.
       (2) Personnel from other entities.--On request of the 
     Committee, the head of an entity of the Federal Government 
     may detail, on a reimbursable basis, any personnel of the 
     entity to the Committee to assist it in carrying out this 
     chapter.
       (h) Obtaining Official Information.--The Committee may 
     secure directly from an entity of the Federal Government 
     information necessary to enable it to carry out this chapter. 
     On request of the Chairman, the head of the entity shall 
     furnish the information to the Committee.
       (i) Administrative Support Services.--The Administrator of 
     General Services shall provide to the Committee, on a 
     reimbursable basis, administrative support services the 
     Committee requests.
       (j) Annual Report.--Not later than December 31 of each 
     year, the Committee shall transmit to the President a report 
     that includes the names of the Committee members serving in 
     the prior fiscal year, the dates of Committee meetings in 
     that year, a description of the activities of the Committee 
     under this chapter in that year, and any recommendations for 
     changes in this chapter which the Committee determines are 
     necessary.

     Sec. 8503. Duties and powers of the Committee

       (a) Procurement List.--
       (1) Maintenance of list.--The Committee shall maintain and 
     publish in the Federal Register a procurement list. The list 
     shall include the following products and services determined 
     by the Committee to be suitable for the Federal Government to 
     procure pursuant to this chapter:
       (A) Products produced by a qualified nonprofit agency for 
     the blind or by a qualified nonprofit agency for other 
     severely disabled.
       (B) The services those agencies provide.

[[Page 11816]]

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

     Sec. 8504. Procurement requirements for the Federal 
       Government

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

     Sec. 8505. Audit

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

     Sec. 8506. Authorization of appropriations

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

                         CHAPTER 87--KICKBACKS

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

     Sec. 8701. Definitions

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

     Sec. 8702. Prohibited conduct

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

     Sec. 8703. Contractor responsibilities

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

     Sec. 8704. Inspection authority

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

     Sec. 8705. Administrative offsets

       (a) Definition.--In this section, the term ``contracting 
     officer'' has the meaning given that term in chapter 71 of 
     this title.
       (b) Offset Authority.--A contracting officer of a 
     contracting agency may offset the amount of a kickback 
     provided, accepted, or charged in violation of section 8702 
     of this title against amounts the Federal Government owes the 
     prime contractor under the prime contract to which the 
     kickback relates.
       (c) Duties of Prime Contractor.--
       (1) Withholding and paying over or retaining amounts.--On 
     direction of a contracting officer of a contracting agency 
     with respect to a prime contract, the prime contractor shall 
     withhold from amounts owed to a subcontractor under a 
     subcontract of the prime contract the amount of a kickback

[[Page 11817]]

     which was or may be offset against the prime contractor under 
     subsection (b). The contracting officer may order that 
     amounts withheld--
       (A) be paid over to the contracting agency; or
       (B) be retained by the prime contractor if the Federal 
     Government has already offset the amount against the prime 
     contractor.
       (2) Notice.--The prime contractor shall notify the 
     contracting officer when an amount is withheld and retained 
     under paragraph (1)(B).
       (d) Offset, Direction, or Order is Claim of Federal 
     Government.--An offset under subsection (b) or a direction or 
     order of a contracting officer under subsection (c) is a 
     claim by the Federal Government for the purposes of chapter 
     71 of this title.

     Sec. 8706. Civil actions

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

     Sec. 8707. Criminal penalties

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

     SEC. 4. CONFORMING AMENDMENT.

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

     SEC. 5. CONFORMING CROSS-REFERENCES.

       (a) Title 5.--Title 5, United States Code, is amended as 
     follows:
       (1) In section 504(b)(1)(C)(ii)--
       (A) strike ``section 6 of the Contract Disputes Act of 1978 
     (41 U.S.C. 605)'' and substitute ``section 7103 of title 
     41''; and
       (B) strike ``section 8 of that Act (41 U.S.C. 607)'' and 
     substitute ``section 7105 of title 41''.
       (2) In section 551(1)(H), strike ``chapter 2 of title 
     41;''.
       (3) In section 701(b)(1)(H), strike ``chapter 2 of title 
     41;''.
       (4) In section 3109(b)(3), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (5) In section 3374(c)(2), strike ``section 27 of the 
     Office of Federal Procurement Policy Act'' and substitute 
     ``chapter 21 of title 41''.
       (6) In section 3704(b)(2)(G), strike ``section 27 of the 
     Office of Federal Procurement Policy Act'' and substitute 
     ``chapter 21 of title 41''.
       (7) In section 4105, strike ``section 5'' and substitute 
     ``section 6101(b) to (d)''.
       (8) In section 5102(c)(30), strike ``section 8 of the 
     Contract Disputes Act of 1978'' and substitute ``section 
     7105(a)(2), (c)(2), or (d)(2) of title 41''.
       (9) In section 5372a--
       (A) in subsection (a)(1)--
       (i) strike ``section 8 of the Contract Disputes Act of 
     1978'' and substitute ``section 7105(a)(2), (c)(2), or (d)(2) 
     of title 41''; and
       (ii) strike ``section 42 of the Office of Federal 
     Procurement Policy Act'' and substitute ``section 7105(b)(2) 
     of title 41''; and
       (B) in subsection (a)(2), strike ``section 8 of the 
     Contract Disputes Act of 1978'' and substitute ``section 
     7105(a)(1), (c)(1), or (d)(1) of title 41''.
       (10) In section 7342(e)(1), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C of subtitle 
     I of title 41''.
       (11) In section 8709(a), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (12) In section 8714a(a), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (13) In section 8714b(a), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (14) In section 8714c(a), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (15) In section 8902(a), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (16) In section 8953(a)(1), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (17) In section 8983(a)(1), strike ``section 5'' and 
     substitute ``section 6101(b) to (d)''.
       (18) In section 9003--
       (A) in subsection (a), strike ``section 5'' and substitute 
     ``section 6101(b) to (d)'';
       (B) in subsection (c)(3), before subparagraph (A), strike 
     ``the Contract Disputes Act of 1978'' and substitute 
     ``chapter 71 of title 41'';
       (C) in subsection (c)(3)(A), strike ``(after appropriate 
     arrangements, as described in section 8(c) of such Act)''; 
     and
       (D) in subsection (c)(3)(B), strike ``section 10(a)(1) of 
     such Act'' and substitute ``section 7104(b)(1) of title 41''.
       (19) In section 9009, strike ``section 26(f) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 422(f))'' and 
     substitute ``section 1502(a) and (b) of title 41''.
       (b) Title 10.--Title 10, United States Code, is amended as 
     follows:
       (1) In section 133(c)(1), strike ``section 16(c) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 414(c))'' 
     and substitute ``section 1702(c) of title 41''.
       (2) In section 2013(a), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b)-(d) of title 41''.
       (3) In section 2194(b)(2), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C of subtitle 
     I of title 41''.
       (4) In section 2201--
       (A) in subsection (b), strike ``section 3732(a) of the 
     Revised Statutes (41 U.S.C. 11(a))'' and substitute ``section 
     6301(a) and (b)(1)-(3) of title 41''; and
       (B) in subsection (c), strike ``section 3732(a) of the 
     Revised Statutes (41 U.S.C. 11(a))'' and substitute ``section 
     6301(a) and (b)(1)-(3) of title 41''.
       (5) In section 2207(b), strike ``section 4(11) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(11))'' and substitute ``section 134 of title 41''.
       (6) In section 2225(f)--
       (A) in paragraph (1), strike ``section 16(c) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 414(c))'' and 
     substitute ``section 1702(c) of title 41''; and
       (B) in paragraph (2), strike ``section 4(11) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 403(11))'' and 
     substitute ``section 134 of title 41''.
       (7) In section 2226(b), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12))'' and substitute ``section 103 of title 41''.
       (8) In section 2302--
       (A) in paragraph (3), strike ``section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``chapter 1 of title 41'';
       (B) in paragraph (6), strike ``section 25(c)(1) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     421(c)(1))'' and substitute ``section 1303(a)(1) of title 
     41''; and
       (C) in paragraph (7), strike ``section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``section 134 of title 41''.
       (9) In section 2302a--
       (A) in subsection (a), strike ``section 4(11) of the Office 
     of Federal Procurement Policy Act'' and substitute ``section 
     134 of title 41''; and
       (B) in subsection (b), strike ``section 33 of the Office of 
     Federal Procurement Policy Act'' and substitute ``section 
     1905 of title 41''.
       (10) In section 2302b, strike ``section 31 of the Office of 
     Federal Procurement Policy Act'' and substitute ``section 
     1901 of title 41''.
       (11) In section 2302c--
       (A) in subsection (a)(1), strike ``section 30 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 426)'' and 
     substitute ``section 2301 of title 41''; and
       (B) in subsection (b), strike ``section 16(c) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 414(c))'' and 
     substitute ``section 1702(c) of title 41''.
       (12) In section 2304--
       (A) in subsection (f)(1)(B)(iii), strike ``section 16(c) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     414(c))'' and substitute ``section 1702(c) of title 41'';
       (B) in subsection (f)(1)(C), strike ``section 18 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 416)'' 
     and substitute ``section 1708 of title 41'';
       (C) in subsection (f)(2)(D), strike ``the Javits-Wagner-
     O'Day Act (41 U.S.C. 46 et seq.)'' and substitute ``chapter 
     85 of title 41'';
       (D) in subsection (g)(4), strike ``section 31(f) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 427)'' 
     and substitute ``section 1901(e) of title 41''; and
       (E) in subsection (h)(1), strike ``The Walsh-Healey Act (41 
     U.S.C. 35 et seq.)'' and substitute ``Chapter 65 of title 
     41''.
       (13) In section 2304b--
       (A) in subsection (c), strike ``section 18 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 416)'' and 
     substitute ``section 1708 of title 41''; and
       (B) in subsection (f)(3), strike ``section 18 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 416)'' and 
     substitute ``section 1708 of title 41''.
       (14) In section 2304c(a)(1), strike ``section 18 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 416)'' 
     and substitute ``section 1708 of title 41''.
       (15) In section 2306a(h)(3), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12))'' and substitute ``section 103 of title 41''.
       (16) In section 2314, strike ``Sections 3709 and 3735 of 
     the Revised Statutes (41 U.S.C. 5 and 13)'' and substitute 
     ``Sections 6101(b)-(d) and 6304 of title 41''.
       (17) In section 2318--
       (A) in subsection (a)(1), strike ``section 20(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 418(a))'' 
     and substitute ``section 1705(a) of title 41''; and
       (B) in subsection (a)(2), strike ``sections 20(b) and 20(c) 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     418(b), (c))'' and substitute ``section 1705(b) and (c) of 
     title 41''.

[[Page 11818]]

       (18) In section 2321(h), strike ``the Contract Disputes Act 
     of 1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 
     of title 41''.
       (19) In section 2324--
       (A) in subsection (d)(1), strike ``section 6 of the 
     Contract Disputes Act of 1978 (41 U.S.C. 605)'' and 
     substitute ``section 7103 of title 41'';
       (B) in subsection (d)(2), strike ``section 7 of such Act 
     (41 U.S.C. 606)'' and substitute ``section 7104(a) of title 
     41'';
       (C) in subsection (e)(1)(P), strike ``section 39 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 435)'' 
     and substitute ``section 1127 of title 41''; and
       (D) in subsection (e)(2)(C), strike ``(41 U.S.C. 10b-1)'' 
     and substitute ``(as added by section 7002(2) of the Omnibus 
     Trade and Competitiveness Act of 1988)''.
       (20) In section 2343, strike ``section 3741 of the Revised 
     Statutes (41 U.S.C. 22)'' and substitute ``section 6306 of 
     title 41''.
       (21) In section 2375(b), strike ``section 34 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 430)'' and 
     substitute ``section 1906 of title 41''.
       (22) In section 2376(1), strike ``section 4 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``chapter 1 of title 41''.
       (23) In section 2384--
       (A) in subsection (b)(2), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12)))'' and substitute ``section 103 of title 41)''; and
       (B) in subsection (b)(3), strike ``section 4(11) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(11)))'' and substitute ``section 134 of title 41)''.
       (24) In section 2393(d)--
       (A) strike ``section 4(11) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(11)))'' and substitute 
     ``section 134 of title 41)''; and
       (B) strike ``section 4(12) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(12)))'' and substitute 
     ``section 103 of title 41)''.
       (25) In section 2402--
       (A) in subsection (c), strike ``section 4(11) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 403(11)))'' and 
     substitute ``section 134 of title 41)''; and
       (B) in subsection (d)(2), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12))'' and substitute ``section 103 of title 41''.
       (26) In section 2408--
       (A) in subsection (a)(4)(A), strike ``section 4(11) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(11)))'' and substitute ``section 134 of title 41)''; and
       (B) in subsection (a)(4)(B), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12)))'' and substitute ``section 103 of title 41)''.
       (27) In section 2410(c), strike ``section 4(11) of the 
     Office of Federal Procurement Policy Act'' and substitute 
     ``section 134 of title 41''.
       (28) In section 2410b(c), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12)))'' and substitute ``section 103 of title 41)''.
       (29) In section 2410d--
       (A) in subsection (b)(2)(A), strike ``section 5(3) of the 
     Javits-Wagner-O'Day Act (41 U.S.C. 48b(3))'' and substitute 
     ``section 8501(7) of title 41'';
       (B) in subsection (b)(2)(B), strike ``handicapped, as 
     defined in section 5(4) of such Act (41 U.S.C. 48b(4))'' and 
     substitute ``disabled, as defined in section 8501(6) of title 
     41''; and
       (C) in subsection (b)(2)(C), strike ``section 2(c) of such 
     Act (41 U.S.C. 47(c))'' and substitute ``section 8503(c) of 
     title 41''.
       (30) In section 2410g(d)(1), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12)))'' and substitute ``section 103 of title 41)''.
       (31) In section 2410i(b)(1), strike ``section 4(11) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(11)))'' and substitute ``section 134 of title 41)''.
       (32) In section 2410m--
       (A) in subsection (a), before paragraph (1), strike ``the 
     Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.)'' and 
     substitute ``chapter 71 of title 41'';
       (B) in subsection (a)(2), strike ``section 7 of such Act 
     (41 U.S.C. 606)'' and substitute ``section 7104(a) of title 
     41''; and
       (C) in subsection (b)(1)(A), strike ``section 10(a) of the 
     Contract Disputes Act of 1978 (41 U.S.C. 609(a))'' and 
     substitute ``section 7104(b) of title 41''.
       (33) In section 2457(e), strike ``section 2 of the Buy 
     American Act (41 U.S.C. 10a)'' and substitute ``section 8302 
     of title 41''.
       (34) In section 2461(c)(1), strike ``section 2 of the 
     Javits-Wagner-O'Day Act (41 U.S.C. 47)'' and substitute 
     ``section 8503 of title 41''.
       (35) In section 2485(b)(1), strike ``section 4(6) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 403(6))'' 
     and substitute ``section 107 of title 41''.
       (36) In the chapter analysis for subchapter V of chapter 
     148, in the item for section 2533, strike ``the Buy American 
     Act'' and substitute ``chapter 83 of title 41''.
       (37) In section 2533--
       (A) in the section catchline, strike ``the Buy American 
     Act'' and substitute ``chapter 83 of title 41''; and
       (B) in subsection (a), strike ``section 2 of the Buy 
     American Act (41 U.S.C. 10a)'' and substitute ``section 8302 
     of title 41''.
       (38) In section 2533a(i), strike ``section 34 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 430)'' and 
     substitute ``section 1906 of title 41''.
       (39) In section 2533b--
       (A) in subsection (h), strike ``section 34 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 430)'' and 
     substitute ``section 1906 of title 41''; and
       (B) in subsection (j), strike ``section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``section 105 of title 41''.
       (40) In section 2534(g)(2), strike ``section 33 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 429)'' 
     and substitute ``section 1905 of title 41''.
       (41) In section 2562(a)(1), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C of subtitle 
     I of title 41''.
       (42) In section 2576(a), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (43) In section 2636(b)(3), strike ``section 4(11) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(11))'' and substitute ``section 134 of title 41''.
       (44) In section 2667(f)(1), strike ``Notwithstanding 
     subsection (a)(3) or subtitle I of title 40 and title III of 
     the Federal Property and Administrative Services Act of 1949 
     (to the extent subtitle I and title III are inconsistent with 
     this subsection)'' and substitute ``Notwithstanding subtitle 
     I of title 40 and division C of subtitle I of title 41 (to 
     the extent those provisions are inconsistent with this 
     subsection) or subsection (a)(2) of this section''.
       (45) In section 2664(a), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949, as amended 
     (41 U.S.C. 251 et seq.)'' and substitute ``division C of 
     subtitle I of title 41''.
       (46) In section 2691(b), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (47) In section 2696(a), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (48) In section 2836(g), strike ``the Contract Disputes Act 
     of 1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 
     of title 41''.
       (49) In section 2854a(d)(1), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C of subtitle 
     I of title 41''.
       (50) In section 2878(d)(2), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C of subtitle 
     I of title 41''.
       (51) In the chapter analysis for chapter 633, in the item 
     for section 7299, strike ``Walsh-Healey Act'' and substitute 
     ``chapter 65 of title 41''.
       (52) In section 7299--
       (A) in the heading, strike ``Walsh-Healey Act'' and 
     substitute ``chapter 65 of title 41''; and
       (B) strike ``the Walsh-Healey Act (41 U.S.C. 35 et seq.)'' 
     and substitute ``chapter 65 of title 41''.
       (53) In section 7305(d)--
       (A) strike ``title III of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
     and substitute ``division C of subtitle I of title 41''; and
       (B) strike ``under subtitle I of title 40 and such title 
     III'' and substitute ``under those provisions''.
       (54) In section 9444(b)(1), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C of subtitle 
     I of title 41''.
       (55) In section 9781(g), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (c) Title 14.--Title 14, United States Code, is amended as 
     follows:
       (1) In section 92(d), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (2) In section 93(h), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (3) In section 641(a), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (4) In section 685(c)(1), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (d) Title 18.--Title 18, United States Code, is amended as 
     follows:
       (1) In section 3672, strike ``section 3709 of the Revised 
     Statutes of the United States'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (2) In section 4124(c), strike ``section 6(d)(4) of the 
     Office of Federal Procurement Policy

[[Page 11819]]

     Act'' and substitute ``section 1122(a)(4) of title 41''.
       (e) Title 23.--Title 23, United States Code, is amended as 
     follows:
       (1) In section 140--
       (A) in subsection (b), strike ``section 3709 of the Revised 
     Statutes, as amended (41 U.S.C. 5),'' and substitute 
     ``section 6101(b) to (d) of title 41''; and
       (B) in subsection (c)--
       (i) strike ``section 3709 of the Revised Statutes, as 
     amended (41 U.S.C. 5),'' and substitute ``section 6101(b) to 
     (d) of title 41''; and
       (ii) strike ``section 302(e) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 252(e))'' and 
     substitute ``section 3106 of title 41''.
       (2) In section 502(c)(5), strike ``Section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``Section 
     6101(b) to (d) of title 41''.
       (f) The Internal Revenue Code of 1986.--Section 7608(c)(1) 
     of the Internal Revenue Code of 1986 (26 U.S.C. 7608(c)(1)) 
     is amended--
       (1) in subparagraph (A)(i)(II), by striking ``sections 
     11(a) and 22'' and substituting ``sections 6301(a) and 
     (b)(1)-(3) and 6306'';
       (2) in subparagraph (A)(i)(III), by striking ``section 
     255'' and substituting ``chapter 45''; and
       (3) in subparagraph (A)(i)(V), by striking ``section 254(a) 
     and (c)'' and substituting ``section 3901''.
       (g) Title 28.--Title 28, United States Code, is amended as 
     follows:
       (1) In the last sentence of section 524(c)(1), strike 
     ``section 3709 of the Revised Statutes of the United States 
     (41 U.S.C. 5), title III of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 251 and 
     following)'' and substitute ``division C (except sections 
     3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of 
     title 41, section 6101(b) to (d) of title 41''.
       (2) In section 604(a)(10)(C), strike ``section 3709 of the 
     Revised Statutes of the United States (41 U.S.C. 5)'' and 
     substitute ``section 6101(b) to (d) of title 41''.
       (3) In section 624(3), strike ``section 3709 of the Revised 
     Statutes, as amended (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (4) In section 753(g), strike ``section 3709 of the Revised 
     Statutes of the United States, as amended (41 U.S.C. 5)'' and 
     substitute ``section 6101(b) to (d) of title 41''.
       (5) In section 1295--
       (A) in subsection (a)(10), strike ``section 8(g)(1) of the 
     Contract Disputes Act of 1978 (41 U.S.C. 607(g)(1))'' and 
     substitute ``section 7107(a)(1) of title 41'';
       (B) in subsection (b), strike ``section 10(b) of the 
     Contract Disputes Act of 1978 (41 U.S.C. 609(b))'' and 
     substitute ``section 7107(b) of title 41''; and
       (C) in subsection (c), strike ``section 10(b) of the 
     Contract Disputes Act of 1978'' and substitute ``section 
     7107(b) of title 41''.
       (6) In section 1346(a)(2), strike ``sections 8(g)(1) and 
     10(a)(1) of the Contract Disputes Act of 1978'' and 
     substitute ``sections 7104(b)(1) and 7107(a)(1) of title 
     41''.
       (7) In section 1491(a)(2), strike ``section 10(a)(1) of the 
     Contract Disputes Act of 1978'' and substitute ``section 
     7104(b)(1) of title 41''.
       (8) In section 2401(a), strike ``the Contract Disputes Act 
     of 1978'' and substitute ``chapter 71 of title 41''.
       (9) In section 2412--
       (A) in subsection (d)(2)(E), strike ``the Contract Disputes 
     Act of 1978'' and substitute ``chapter 71 of title 41''; and
       (B) in subsection (d)(3), strike ``the Contract Disputes 
     Act of 1978'' and substitute ``chapter 71 of title 41''.
       (10) In section 2414, strike ``the Contract Disputes Act of 
     1978'' and substitute ``chapter 71 of title 41''.
       (11) In section 2517(a), strike ``the Contract Disputes Act 
     of 1978'' and substitute ``chapter 71 of title 41''.
       (h) Title 31.--Title 31, United States Code, is amended as 
     follows:
       (1) In section 506, strike ``section 5(a) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 404(a))'' and 
     substitute ``section 1101(a) of title 41''.
       (2) In section 731(i)(7), strike ``section 27 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 423)'' and 
     substitute ``chapter 21 of title 41''.
       (3) In section 781(c)(1), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (4) Section 1344(h)(2)(A) is amended to read as follows:
       ``(A) a department--
       ``(i) including independent establishments, other agencies, 
     and wholly owned Government corporations; but
       ``(ii) not including the Senate, House of Representatives, 
     or Architect of the Capitol, or the officers or employees 
     thereof;''.
       (5) In section 3567, strike ``section 4(1) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(1))'' and 
     substitute ``section 133 of title 41''.
       (6) In section 3718(b)(1)(A), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 and following)'' and substitute ``division C of 
     subtitle I of title 41''.
       (7) In section 3902(a), strike ``section 12 of the Contract 
     Disputes Act of 1978 (41 U.S.C. 611)'' and substitute 
     ``section 7109(a)(1) and (b) of title 41''.
       (8) In section 3907--
       (A) in subsection (a), strike ``section 6 of the Contract 
     Disputes Act of 1978 (41 U.S.C. 605)'' and substitute 
     ``section 7103 of title 41'';
       (B) in subsection (b)(1)(A), strike ``the Contract Disputes 
     Act of 1978 (41 U.S.C. 601 et seq.)'' and substitute 
     ``chapter 71 of title 41'';
       (C) in subsection (b)(2)--
       (i) strike ``section 12 of the Contract Disputes Act of 
     1978 (41 U.S.C. 611)'' and substitute ``section 7109(a)(1) 
     and (b) of title 41''; and
       (ii) in the second sentence, strike ``section 12'' and 
     substitute ``section 7109(a)(1) and (b)''; and
       (D) in subsection (c), strike ``the Contract Disputes Act 
     of 1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 
     of title 41''.
       (9) In section 6202(c)(2), strike ``section 6(d)(5) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     405(d)(5))'' and substitute ``section 1122(a)(4) of title 
     41''.
       (10) In section 9703(b)(3), as added by section 638(b)(1) 
     of the Act of October 6, 1992 (Public Law 102-393, 106 Stat. 
     1779), strike ``section 3709 of the Revised Statutes of the 
     United States (41 U.S.C. 5), title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C (except sections 
     3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of 
     title 41, section 6101(b) to (d) of title 41''.
       (i) Title 35.--Title 35, United States Code, is amended as 
     follows:
       (1) In section 2(b)(4)(A), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C (except 
     sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of 
     subtitle I of title 41''.
       (2) In section 203(b), strike ``the Contract Disputes Act 
     (41 U.S.C. Sec. 601 et seq.)'' and substitute ``chapter 71 of 
     title 41''.
       (j) Title 38.--Title 38, United States Code, is amended as 
     follows:
       (1) In section 1720(c)(2), strike ``section 2(b)(1) of the 
     Service Contract Act of 1965 (41 U.S.C. 351(b)(1))'' and 
     substitute ``section 6704(a) of title 41''.
       (2) In section 1966(a), strike ``section 3709 of the 
     Revised Statutes, as amended (41 U.S.C. 5)'' and substitute 
     ``section 6101(b) to (d) of title 41''.
       (3) In section 3720(b), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C (except sections 
     3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of 
     title 41''.
       (4) In section 7317(f), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (5) In section 7802(f), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (6) In section 8122--
       (A) in subsection (a)(1), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''; and
       (B) in subsection (c)--
       (i) strike ``(41 U.S.C. 252(c))''; and
       (ii) strike ``section 304 of that Act (41 U.S.C. 254)'' and 
     substitute ``sections 3901 and 3905 of title 41''.
       (7) In section 8127--
       (A) in subsection (b), strike ``section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``section 134 of title 41''; and
       (B) in subsection (c)(2), strike ``section 4 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``section 134 of title 41''.
       (8) In section 8153(a)--
       (A) in paragraph (3)(B)(ii), strike ``section 22 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 418b)'' 
     and substitute ``section 1707 of title 41''; and
       (B) in paragraph (3)(D), strike ``section 303(f) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253(f))'' and substitute ``section 3304(e) of title 
     41''.
       (9) In section 8201(e), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (k) Title 39.--Section 410(b) of title 39, United States 
     Code, is amended by striking paragraph (5) and substituting--
       ``(5) chapters 65 and 67 of title 41;''.
       (l) Title 40.--Title 40, United States Code, is amended as 
     follows:
       (1) In the chapter analysis for chapter 1, in item 111, 
     strike ``Federal Property and Administrative Services Act of 
     1949'' and substitute ``division C of subtitle I of title 
     41''.
       (2) In section 102, before paragraph (1), strike ``title 
     III of the Federal Property and Administrative Services Act 
     of 1949 (41 U.S.C. 251 et seq.)'' and substitute ``division C 
     (except section 3302) of subtitle I of title 41''.
       (3) In section 111--
       (A) in the section catchline, strike ``Federal Property and 
     Administrative Services Act of 1949'' and substitute 
     ``division C of subtitle I of title 41''; and
       (B) before paragraph (1), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C (except sections 
     3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of 
     title 41''.
       (4) In section 113(b)--
       (A) in the heading, strike ``the Office of Federal 
     Procurement Policy Act'' and substitute ``Division B of 
     Subtitle I of Title 41''; and

[[Page 11820]]

       (B) strike ``the Office of Federal Procurement Policy Act 
     (41 U.S.C. 401 et seq.)'' and substitute ``division B of 
     subtitle I of title 41''.
       (5) In section 311--
       (A) in subsection (a), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''; and
       (B) in subsection (b), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (6) In section 501(b)(2)(B), strike ``the Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.)'' and 
     substitute ``division B of subtitle I of title 41''.
       (7) In section 502--
       (A) in subsection (b)(1)(A)(i), strike ``section 5(3) of 
     the Javits-Wagner-O'Day Act (41 U.S.C. 48b(3))'' and 
     substitute ``section 8501(7) of title 41'';
       (B) in subsection (b)(1)(A)(ii), strike ``handicapped (as 
     defined in section 5(4) of the Javits-Wagner-O'Day Act (41 
     U.S.C. 48b(4)))'' and substitute ``disabled (as defined in 
     section 8501(6) of title 41)'';
       (C) in subsection (b)(1)(B), strike ``the Javits-Wagner-
     O'Day Act (41 U.S.C. 46 et seq.)'' and substitute ``chapter 
     85 of title 41''; and
       (D) in subsection (b)(2), strike ``section 2 of the Javits-
     Wagner-O'Day Act (41 U.S.C. 47)'' and substitute ``section 
     8503 of title 41''.
       (8) In section 503(b)--
       (A) in paragraph (1), strike ``the Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.)'' and 
     substitute ``division B of subtitle I of title 41''; and
       (B) in paragraph (3)--
       (i) in the heading, strike ``Section 3709 of revised 
     statutes'' and substitute ``Section 6101(b) to (d) of title 
     41''; and
       (ii) strike ``Section 3709 of the Revised Statutes (41 
     U.S.C. 5)'' and substitute ``Section 6101(b) to (d) of title 
     41''.
       (9) In section 506(a)(1)(D), strike ``the Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.)'' and 
     substitute ``division B of subtitle I of title 41''.
       (10) In section 545(f), strike ``Section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``Section 
     6101(b)-(d) of title 41''.
       (11) In section 593(a)(2), strike ``the Javits-Wagner-O'Day 
     Act (41 U.S.C. 46 et seq.)'' and substitute ``chapter 85 of 
     title 41''.
       (12) In section 1305, strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (13) In section 1308, strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (14) In section 3148, strike ``section 3709 of the Revised 
     Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to 
     (d) of title 41''.
       (15) In section 3304(d)(2), strike ``title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.)'' and substitute ``division C (except 
     sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of 
     subtitle I of title 41''.
       (16) In section 3305(a)--
       (A) in paragraph (1), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''; and
       (B) in paragraph (2), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (17) In section 3308(a), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (18) In section 3310(2), strike ``section 303 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253)'' and substitute ``sections 3105, 3301, and 3303 
     to 3305 of title 41''.
       (19) In section 3701(b)(3)(A)(ii), strike ``the Walsh-
     Healey Act (41 U.S.C. 35 et seq.)'' and substitute ``chapter 
     65 of title 41''.
       (20) In section 3704(b)(1), strike ``sections 4 and 5 of 
     the Walsh-Healey Act (41 U.S.C. 38, 39)'' and substitute 
     ``sections 6506 and 6507 of title 41''.
       (21) In section 3707, strike ``section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``section 103 of title 41''.
       (22) In section 6111(b)(2)(D), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (23) In section 8711(d), strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (24) In section 11101--
       (A) in paragraph (1), strike ``section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403)'' and 
     substitute ``section 103 of title 41''; and
       (B) in paragraph (2), strike ``section 4 of the Act (41 
     U.S.C. 403)'' and substitute ``section 133 of title 41''.
       (m) Title 44.--Title 44, United States Code, is amended as 
     follows:
       (1) In the chapter analysis for chapter 3, in the item for 
     section 311, strike ``the Federal Property and Administrative 
     Services Act'' and substitute ``subtitle I of title 40 and 
     division C of subtitle I of title 41''.
       (2) In section 311--
       (A) in the section catchline, strike ``the Federal Property 
     and Administrative Services Act'' and substitute ``subtitle I 
     of title 40 and division C of subtitle I of title 41'';
       (B) in subsection (a), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C (except sections 
     3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of 
     title 41''; and
       (C) in subsection (c), strike ``section 3709 of the Revised 
     Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to 
     (d) of title 41''.
       (n) Title 46.--Section 51703(b)(2) of title 46, United 
     States Code, is amended by striking ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substituting ``section 
     6101(b) to (d) of title 41''.
       (o) Title 49.--Title 49, United States Code, is amended as 
     follows:
       (1) In section 103(e), strike ``title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.)'' and substitute ``division C of subtitle I of 
     title 41''.
       (2) In section 1113(b)(1)(B) strike ``section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
     6101(b) to (d) of title 41''.
       (3) In section 5334(j)(2), strike ``Section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``Section 
     6101(b) to (d) of title 41''.
       (4) In section 10721, strike ``Section 3709 of the Revised 
     Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to 
     (d) of title 41''.
       (5) In section 13712, strike ``Section 3709 of the Revised 
     Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to 
     (d) of title 41''.
       (6) In section 15504, strike ``Section 3709 of the Revised 
     Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to 
     (d) of title 41''.
       (7) In section 40110--
       (A) in subsection (d)(2)(A), strike ``Title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 252-266)'' and substitute ``Division C (except 
     sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of 
     subtitle I of title 41'';
       (B) in subsection (d)(2)(B), strike ``The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.)'' and 
     substitute ``Division B (except sections 1704 and 2303) of 
     subtitle I of title 41'';
       (C) in subsection (d)(2)(C), strike ``, except for section 
     315 (41 U.S.C. 265). For the purpose of applying section 315 
     of that Act to the system,'' and substitute ``. However, 
     section 4705 of title 41 shall apply to the new acquisition 
     management system developed and implemented pursuant to 
     paragraph (1). For the purpose of applying section 4705 of 
     title 41 to the system,''; and
       (D) in subsection (d)(3)--
       (i) in the heading, strike ``the office of federal 
     procurement policy act'' and substitute ``division b of 
     subtitle i of title 41'';
       (ii) before subparagraph (A), strike ``section 27 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 423)'' 
     and substitute ``chapter 21 of title 41''; and
       (iii) in subparagraph (A), strike ``Subsections (f) and 
     (g)'' and substitute ``Sections 2101 and 2106 of title 41''.
       (8) In section 40118(f)(2), strike ``section 4(12) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12))'' and substitute ``section 103 of title 41''.
       (9) In section 47305(d), strike ``Section 3709 of the 
     Revised Statutes (41 U.S.C. 5)'' and substitute ``Section 
     6101(b) to (d) of title 41''.

     SEC. 6. TRANSITIONAL AND SAVINGS PROVISIONS.

       (a) Cutoff Date.--This Act replaces certain provisions of 
     law enacted on or before December 31, 2008. If a law enacted 
     after that date amends or repeals a provision replaced by 
     this Act, that law is deemed to amend or repeal, as the case 
     may be, the corresponding provision enacted by this Act. If a 
     law enacted after that date is otherwise inconsistent with 
     this Act, it supersedes this Act to the extent of the 
     inconsistency.
       (b) Original Date of Enactment Unchanged.--For purposes of 
     determining whether one provision of law supersedes another 
     based on enactment later in time, the date of enactment of a 
     provision enacted by this Act is deemed to be the date of 
     enactment of the provision it replaced.
       (c) References to Provisions Replaced.--A reference to a 
     provision of law replaced by this Act, including a reference 
     in a regulation, order, or other law, is deemed to refer to 
     the corresponding provision enacted by this Act.
       (d) Regulations, Orders, and Other Administrative 
     Actions.--A regulation, order, or other administrative action 
     in effect under a provision of law replaced by this Act 
     continues in effect under the corresponding provision enacted 
     by this Act.
       (e) Actions Taken and Offenses Committed.--An action taken 
     or an offense committed under a provision of law replaced by 
     this Act is deemed to have been taken or committed under the 
     corresponding provision enacted by this Act.
       (f) Effective Dates for Certain Actions.--
       (1) Issue policy.--The requirement in section 2303(b)(1) of 
     title 41, United States Code,

[[Page 11821]]

     to issue a policy shall be done not later than 270 days after 
     October 14, 2008.
       (2) Revisions in federal procurement data system or 
     successor system.--The requirement in section 2311 of title 
     41, United States Code, to direct appropriate revisions in 
     the Federal Procurement Data System or any successor system 
     shall be done not later than one year after October 14, 2008.
       (3) Establish database.--The requirement in section 2313(a) 
     of title 41, United States Code, to establish a database 
     shall be done not later than one year after October 14, 2008.
       (4) Amend federal acquisition regulation within one year 
     after october 14, 2008.--The Federal Acquisition Regulation 
     shall be amended to meet the requirements of sections 
     2313(f), 3302(b) and (d), 4710(b), and 4711(b) of title 41, 
     United States Code, not later than one year after October 14, 
     2008.
       (5) Amend federal acquisition regulation within 270 days 
     after october 14, 2008.--The Federal Acquisition Regulation 
     shall be amended to meet the requirements of section 3906(b) 
     of title 41, United States Code, not later than 270 days 
     after October 14, 2008.

     SEC. 7. REPEALS.

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

                                                                SCHEDULE OF LAWS REPEALED
                                                                   [Statutes at Large]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Statutes at Large        U.S. Code (title 41 unless otherwise specified)
             Date               Chapter or Public          Section        ------------------------------------------------------------------------------
                                       Law                                 Volume         Page                     Existing                  Proposed
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
             1875
Mar. 3........................  133..............  2.....................      18  455..............                                  10  ..............
 
             1884
July 7........................  332..............  (words after ``fifty        23  204..............                                  24            6308
                                                    five thousand
                                                    dollars'' in 3d par.
                                                    under heading
                                                    ``Miscellaneous
                                                    Objects Under the
                                                    Treasury
                                                    Department'').
 
             1920
June 5........................  240..............  (last par. under            41  975..............                                  23            6307
                                                    heading ``Purchase of
                                                    Articles Manufactured
                                                    at Government
                                                    Arsenals'').
 
             1921
June 30.......................  33...............  1 (last proviso on p.       42  78...............                                 11a            6302
                                                    78).
 
             1922
July 1........................  259..............  (1st proviso on p.          42  812..............                                  23            6307
                                                    812).
 
             1926
May 13........................  294..............  (4th complete par.          44  547..............                                 16c  ..............
                                                    (related to R.S. Sec.
                                                     3741) on p. 547).
 
             1927
Jan. 12.......................  27...............  (2d complete par.           44  936..............                                 16a  ..............
                                                    (related to R.S. Sec.
                                                     3741) on p. 936).
 
             1933
Mar. 3........................  212..............  title III, Sec.  1....      47  1520.............                                 10c            8301
                                 ................  title III, Sec.  2....      47  1520.............                                 10a            8302
                                 ................  title III, Sec.  3....      47  1520.............                                 10b            8303
                                 ................  title III, Sec.  4....  ......  .................                               10b-1  ..............
June 16.......................  101..............  5.....................      48  305..............                                 24a  ..............
 
             1934
Jan. 25.......................  5................  (related to R.S. Sec.       48  337..............                                  22            6306
                                                    3741).
June 16.......................  553..............  1-6...................      48  974..............                               28-33  ..............
 
             1935
Aug. 29.......................  815..............  ......................      49  990..............                                  34  ..............
 
             1936
June 30.......................  881..............  1 (matter before            49  2036.............                                  35            6502
                                                    subsec. (a) less
                                                    words related to
                                                    definition of
                                                    ``agency of the
                                                    United States'').
                                 ................  1 (matter before            49  2036.............                                  35            6501
                                                    subsec. (a) related
                                                    to definition of
                                                    ``agency of the
                                                    United States'').
                                 ................  1(a)-(d)..............      49  2036.............                                  35            6502
                                 ................  2.....................      49  2037.............                                  36            6503
                                 ................  3.....................      49  2037.............                                  37            6504
                                 ................  4.....................      49  2038.............                                  38            6506
                                 ................  5.....................      49  2038.............                                  39            6507
                                 ................  6.....................      49  2038.............                                  40            6508
                                 ................  7.....................      49  2039.............                                  41            6501
                                 ................  8.....................      49  2039.............                                  42            6511
                                 ................  9.....................      49  2039.............                                  43            6505
                                 ................  10(a).................  ......  .................                                 43a            6509
                                 ................  10(b) (1st sentence)..  ......  .................                                 43a            6507
                                 ................  10(b) (last sentence),  ......  .................                                 43a            6509
                                                    (c).
                                 ................  11....................  ......  .................                                 43b            6510
                                 ................  12....................      49  2039.............                                  44  ..............
                                 ................  13....................      49  2039.............                                  45            6502
 
             1938
June 25.......................  697..............  1.....................      52  1196.............                                  46            8502
                                 ................  2.....................      52  1196.............                                  47            8503
                                 ................  3.....................      52  1196.............                                  48            8504
                                 ................  4.....................      52  1196.............                                 48a            8505
                                 ................  5.....................      52  1196.............                                 48b            8501
                                 ................  6.....................      52  1196.............                                 48c            8506
                                 ................  7.....................  ......  .................                             46 note  ..............
 
             1939
Aug. 4........................  418..............  13 (related to R.S.         53  1197.............                                 16d  ..............
                                                    Sec.  3744).
 
             1940
June 18.......................  396..............  (last par. (related to      54  474..............                                 6kk  ..............
                                                    R.S. Sec.  3709)
                                                    under heading
                                                    ``Botanic Garden'').
                                 ................  (last par. (related to      54  474..............                                 16b  ..............
                                                    R.S. Sec.  3744)
                                                    under heading
                                                    ``Botanic Garden'').
June 24.......................  412..............  ......................      54  504..............                                  6b            6102
Oct. 10.......................  851..............  2(a)..................      54  1110.............                                  6a            6102
                                 ................  2(f)..................      54  1110.............                                  6a            6102
                                 ................  2(h)..................      54  1110.............                                  6a            6102
                                 ................  2(j)..................      54  1110.............                                  6a            6102
                                 ................  3(a)..................      54  1111.............                                  6b  ..............

[[Page 11822]]

 
                                 ................  3(b)..................      54  1111.............                                  6b  ..............
 
             1942
June 22.......................  432..............  1.....................      56  375..............                                  49            6309
                                 ................  2.....................      56  376..............                                  50            6309
July 2........................  472..............  (1st complete par. on       56  493..............                                   6  ..............
                                                    p. 493).
 
             1944
July 1........................  358..............  1, 2(a)...............      58  649..............                            101, 102  ..............
                                 ................  3.....................      58  650..............                                 103  ..............
                                 ................  4(b)-13(c)............      58  651..............                             104-113  ..............
                                 ................  13(d).................      58  662..............                                 113  ..............
                                 ................  13(e)-15..............      58  662..............                             113-115  ..............
                                 ................  17, 18(a).............      58  665..............                            117, 118  ..............
                                 ................  18(c)-(e).............      58  666..............                                 118  ..............
                                 ................  19(c).................      58  667..............                                 119  ..............
                                 ................  20-25.................      58  668..............                             120-125  ..............
                                 ................  26....................      58  671..............                            101 note  ..............
                                 ................  27....................      58  671..............                            101 note  ..............
 
             1946
Mar. 8........................  80...............  1.....................      60  37...............                                  51  ..............
                                 ................  2.....................      60  37...............                                  52            8701
                                 ................  3.....................      60  37...............                                  53            8702
                                 ................  4.....................      60  37...............                                  54            8707
                                 ................  5.....................      60  37...............                                  55            8706
                                 ................  6.....................      60  37...............                                  56            8705
                                 ................  7.....................      60  37...............                                  57            8703
                                 ................  8.....................      60  37...............                                  58            8704
Aug. 2........................  744..............  9(c)..................      60  809..............                                   5            6101
                                 ................  18....................      60  811..............                                  5a            6101
 
             1949
June 30.......................  288..............  301...................      63  393..............                                 251  ..............
                                 ................  302(a)................      63  393..............                                 252            3101
                                 ................  302(b)................      63  393..............                                 252            3104
                                 ................  302(c)(1).............      63  393..............                                 252            3106
                                 ................  302(c)(2).............  ......  .................                                 252            3301
                                 ................  302A, 302B............  ......  .................                          252a, 252b            3101
                                 ................  302C..................  ......  .................                                252c            4709
                                 ................  303(a)................      63  395..............                                 253            3301
                                 ................  303(b)................      63  395..............                                 253            3303
                                 ................  303(c)-(f)............      63  395..............                                 253            3304
                                 ................  303(g)................      63  395..............                                 253            3305
                                 ................  303(h)................  ......  .................                                 253            3301
                                 ................  303(i)................  ......  .................                                 253            3105
                                 ................  303(j)................  ......  .................                                 253            3304
                                 ................  303A..................  ......  .................                                253a            3306
                                 ................  303B(a), (b)..........  ......  .................                                253b            3701
                                 ................  303B(c)...............  ......  .................                                253b            3702
                                 ................  303B(d)...............  ......  .................                                253b            3703
                                 ................  303B(e)...............  ......  .................                                253b            3704
                                 ................  303B(f)...............  ......  .................                                253b            3705
                                 ................  303B(g)...............  ......  .................                                253b      3704, 3705
                                 ................  303B(h)...............  ......  .................                                253b            3706
                                 ................  303B(i)...............  ......  .................                                253b            3707
                                 ................  303B(j)...............  ......  .................                                253b            3308
                                 ................  303B(k), (l)..........  ......  .................                                253b            3708
                                 ................  303B(m)...............  ......  .................                                253b            4702
                                 ................  303C..................  ......  .................                                253c            3311
                                 ................  303D..................  ......  .................                                253d            4703
                                 ................  303F..................  ......  .................                                253f            3310
                                 ................  303G..................  ......  .................                                253g            4704
                                 ................  303H..................  ......  .................                                253h            4103
                                 ................  303I..................  ......  .................                                253i            4105
                                 ................  303J..................  ......  .................                                253j            4106
                                 ................  303K..................  ......  .................                                253k            4101
                                 ................  303L..................  ......  .................                                253l            3902
                                 ................  303M..................  ......  .................                                253m            3309
                                 ................  304(a)................      63  395..............                                 254            3901
                                 ................  304(b)................      63  395..............                                 254            3905
                                 ................  304A(a)...............  ......  .................                                254b            3502
                                 ................  304A(b)...............  ......  .................                                254b            3503
                                 ................  304A(c)...............  ......  .................                                254b            3504
                                 ................  304A(d)...............  ......  .................                                254b            3505
                                 ................  304A(e)...............  ......  .................                                254b            3506
                                 ................  304A(f)...............  ......  .................                                254b            3507
                                 ................  304A(g)...............  ......  .................                                254b            3508
                                 ................  304A(h)...............  ......  .................                                254b            3501
                                 ................  304B..................  ......  .................                                254c            3903
                                 ................  304C..................  ......  .................                                254d            4706
                                 ................  305(a)................      63  396..............                                 255            4501
                                 ................  305(b)................  ......  .................                                 255            4502
                                 ................  305(c)................      63  396..............                                 255            4502
                                 ................  305(d)................      63  396..............                                 255            4503
                                 ................  305(e)................  ......  .................                                 255            4504
                                 ................  305(f)................  ......  .................                                 255            4505
                                 ................  305(g)................  ......  .................                                 255            4506
                                 ................  306(a)-(d)............  ......  .................                                 256            4303
                                 ................  306(e)................  ......  .................                                 256            4304
                                 ................  306(f)................  ......  .................                                 256            4305

[[Page 11823]]

 
                                 ................  306(g)................  ......  .................                                 256            4306
                                 ................  306(h)................  ......  .................                                 256            4307
                                 ................  306(i)................  ......  .................                                 256            4308
                                 ................  306(j)................  ......  .................                                 256            4309
                                 ................  306(k)................  ......  .................                                 256            4310
                                 ................  306(l)(1).............  ......  .................                                 256            4301
                                 ................  306(l)(2).............  ......  .................                                 256            4302
                                 ................  306(m)................  ......  .................                                 256            4301
                                 ................  307...................      63  396..............                                 257            4701
                                 ................  309(a)................      63  397..............                                 259             151
                                 ................  309(b)................  ......  .................                                 259             152
                                 ................  309(c)(1).............  ......  .................                                 259             111
                                 ................  309(c)(2).............  ......  .................                                 259             112
                                 ................  309(c)(3).............  ......  .................                                 259             114
                                 ................  309(c)(4).............  ......  .................                                 259             107
                                 ................  309(c)(5).............  ......  .................                                 259             113
                                 ................  309(c)(6).............  ......  .................                                 259             116
                                 ................  309(c)(7).............  ......  .................                                 259             109
                                 ................  309(c)(8), (9)........  ......  .................                                 259             108
                                 ................  309(c)(10)............  ......  .................                                 259             115
                                 ................  309(c)(11)............  ......  .................                                 259             103
                                 ................  309(c)(12)............  ......  .................                                 259             110
                                 ................  309(c)(13)............  ......  .................                                 259             102
                                 ................  309(c)(14)............  ......  .................                                 259             105
                                 ................  309(d)................  ......  .................                                 259             153
                                 ................  309(e)................  ......  .................                                 259             106
                                 ................  310...................      63  397..............                                 260            3101
                                 ................  311...................  ......  .................                                 261            3102
                                 ................  312...................  ......  .................                                 262            4701
                                 ................  313...................  ......  .................                                 263            3103
                                 ................  314...................  ......  .................                                 264            3307
                                 ................  314A (``commercial      ......  .................          264a (``commercial item'')             103
                                                    item'').
                                 ................  314A                    ......  .................    264a (``nondevelopmental item'')             110
                                                    (``nondevelopmental
                                                    item'').
                                 ................  314A (``component'')..  ......  .................                264a (``component'')             105
                                 ................  314A (``commercial      ......  .................     264a (``commercial component'')             102
                                                    component'').
                                 ................  314B..................  ......  .................                                264b            3307
                                 ................  315...................  ......  .................                                 265            4705
                                 ................  316...................  ......  .................                                 266            3105
Oct. 29.......................  787..............  633...................      63  1024.............                                 10d            8303
 
             1950
Sept. 5.......................  849..............  10(a).................      64  591..............                                256a            4707
 
             1952
July 14.......................  739..............  ......................      66  627..............                       113, 113 note  ..............
 
             1954
May 11........................  199..............  1.....................      68  81...............                                 321  ..............
                                 ................  2.....................      68  81...............                                 322  ..............
 
             1957
July 1........................  85-75............  (last par. on p. 251).      71  251..............                                  6a  ..............
 
             1961
Aug. 3........................  87-125...........  301...................      75  279..............                                  6b  ..............
 
             1962
Sept. 5.......................  87-638...........  ......................      76  437..............                                254a            4708
 
             1965
July 27.......................  89-90............  (2d par. on p. 276)...      79  276..............                                6a-1            6102
Oct. 22.......................  89-286...........  1.....................      79  1034.............                            351 note  ..............
                                 ................  2(a) (words before          79  1034.............                                 351            6702
                                                    par. (1) related to
                                                    applicability).
                                 ................  2(a) (words before          79  1034.............                                 351            6703
                                                    par. (1) related to
                                                    required contract
                                                    terms), (1)-(5).
                                 ................  2(b)..................      79  1034.............                                 351            6704
                                 ................  3.....................      79  1035.............                                 352            6705
                                 ................  4.....................      79  1035.............                                 353            6707
                                 ................  5(a)..................      79  1035.............                                 354            6706
                                 ................  5(b)..................      79  1035.............                                 354            6705
                                 ................  6.....................      79  1035.............                                 355            6707
                                 ................  7.....................      79  1035.............                                 356            6702
                                 ................  8.....................      79  1036.............                                 357            6701
                                 ................  9.....................      79  1036.............                            351 note  ..............
                                 ................  10....................  ......  .................                                 358            6707
 
             1974
Aug. 30.......................  93-400...........  4(1)..................      88  797..............                                 403             133
                                 ................  4(2)..................      88  797..............                                 403             111
                                 ................  4(3)..................      88  797..............                                 403             112
                                 ................  4(4)..................      88  797..............                                 403             114
                                 ................  4(5)..................  ......  .................                                 403             132
                                 ................  4(6)..................  ......  .................                                 403             107
                                 ................  4(7)..................  ......  .................                                 403             113
                                 ................  4(8)..................  ......  .................                                 403             116
                                 ................  4(9)..................  ......  .................                                 403             109
                                 ................  4(10) (``item'',        ......  .................                                 403             108
                                                    ``item of supply'').
                                 ................  4(10) (``supplies'')..  ......  .................                                 403             115
                                 ................  4(11).................  ......  .................                                 403             134
                                 ................  4(12).................  ......  .................                                 403             103
                                 ................  4(13).................  ......  .................                                 403             110

[[Page 11824]]

 
                                 ................  4(14).................  ......  .................                                 403             105
                                 ................  4(15).................  ......  .................                                 403             102
                                 ................  4(16).................  ......  .................                                 403             131
                                 ................  4(17).................  ......  .................                                 403            1301
                                 ................  5(a)..................      88  797..............                                 404            1101
                                 ................  5(b)..................      88  797..............                                 404            1102
                                 ................  6(a)-(c)..............      88  797..............                                 405            1121
                                 ................  6(d), (e).............      88  797..............                                 405            1122
                                 ................  6(f)..................      88  797..............                                 405            1121
                                 ................  6(g)..................      88  797..............                                 405            1122
                                 ................  6(h)(1)...............      88  797..............                                 405            1130
                                 ................  6(h)(2)...............      88  797..............                                 405            2305
                                 ................  6(i)..................      88  797..............                                 405            1125
                                 ................  6(j)..................  ......  .................                                 405            1126
                                 ................  6(k)..................  ......  .................                                 405            1131
                                 ................  7.....................      88  798..............                                 406            1701
                                 ................  9.....................      88  799..............                                 408            1121
                                 ................  11....................      88  799..............                                 410            1101
                                 ................  12....................      88  799..............                                 411            1122
                                 ................  14(a).................      88  800..............                                 412            2307
                                 ................  14(b).................      88  800..............                                 412            2306
                                 ................  15....................  ......  .................                                 413            1124
                                 ................  16....................  ......  .................                                 414            1702
                                 ................  16A(a)-(c)............  ......  .................                                414b            1311
                                 ................  16A(d), (e)...........  ......  .................                                414b            1312
                                 ................  18....................  ......  .................                                 416            1708
                                 ................  19....................  ......  .................                                 417            1712
                                 ................  20....................  ......  .................                                 418            1705
                                 ................  21....................  ......  .................                                418a            2302
                                 ................  22....................  ......  .................                                418b            1707
                                 ................  23....................  ......  .................                                 419            1709
                                 ................  25(a), (b)............  ......  .................                                 421            1302
                                 ................  25(c)-(f).............  ......  .................                                 421            1303
                                 ................  26(a)-(e).............  ......  .................                                 422            1501
                                 ................  26(f)-(h)(1)..........  ......  .................                                 422            1502
                                 ................  26(h)(2)-(4)..........  ......  .................                                 422            1503
                                 ................  26(i).................  ......  .................                                 422  ..............
                                 ................  26(j).................  ......  .................                                 422            1504
                                 ................  26(k).................  ......  .................                                 422            1505
                                 ................  26(l).................  ......  .................                                 422            1506
                                 ................  27(a), (b)............  ......  .................                                 423            2102
                                 ................  27(c).................  ......  .................                                 423            2103
                                 ................  27(d).................  ......  .................                                 423            2104
                                 ................  27(e).................  ......  .................                                 423            2105
                                 ................  27(f).................  ......  .................                                 423            2101
                                 ................  27(g).................  ......  .................                                 423            2106
                                 ................  27(h).................  ......  .................                                 423            2107
                                 ................  29....................  ......  .................                                 425            1304
                                 ................  30....................  ......  .................                                 426            2301
                                 ................  31....................  ......  .................                                 427            1901
                                 ................  32....................  ......  .................                                 428            1902
                                 ................  32A...................  ......  .................                                428a            1903
                                 ................  33....................  ......  .................                                 429            1905
                                 ................  34....................  ......  .................                                 430            1906
                                 ................  35(a), (b)............  ......  .................                                 431            1907
                                 ................  35(c).................  ......  .................                                 431             104
                                 ................  35A...................  ......  .................                                431a            1908
                                 ................  36....................  ......  .................                                 432            1711
                                 ................  37....................  ......  .................                                 433            1703
                                 ................  38....................  ......  .................                                 434            2308
                                 ................  39....................  ......  .................                                 435            1127
                                 ................  40....................  ......  .................                                 436            2309
                                 ................  41....................  ......  .................                                 437            2310
                                 ................  42....................  ......  .................                                 438            7105
                                 ................  43....................  ......  .................                                 439            1710
                                 ................  44....................  ......  .................                                 440            2312
 
             1978
Oct. 24.......................  95-507...........  222 (1st sentence)....      92  1771.............                                405a            1121
                                 ................  222 (last sentence)...      92  1771.............                                405a            1123
Nov. 1........................  95-563...........  1.....................      92  2383.............                            601 note  ..............
                                 ................  2.....................      92  2383.............                                 601            7101
                                 ................  3.....................      92  2383.............                                 602            7102
                                 ................  4.....................      92  2384.............                                 603            7102
                                 ................  5.....................      92  2384.............                                 604            7103
                                 ................  6(a) (1st, 2d               92  2384.............                                 605            7103
                                                    sentences).
                                 ................  6(a) (3d, 4th           ......  .................                                 605            7103
                                                    sentences).
                                 ................  6(a) (5th-last              92  2384.............                                 605            7103
                                                    sentences), (b),
                                                    (c)(1)-(5).
                                 ................  6(c)(6), (7), (d), (e)  ......  .................                                 605            7103
                                 ................  7.....................      92  2385.............                                 606            7104
                                 ................  8(a)-(e)..............      92  2385.............                                 607            7105
                                 ................  8(f)..................      92  2386.............                                 607            7106
                                 ................  8(g)..................      92  2387.............                                 607            7107
                                 ................  9.....................      92  2387.............                                 608            7106
                                 ................  10(a).................      92  2388.............                                 609            7104
                                 ................  10(b)-(e).............      92  2388.............                                 609            7107
                                 ................  10(f).................  ......  .................                                 609            7107
                                 ................  11....................      92  2388.............                                 610            7105

[[Page 11825]]

 
                                 ................  12....................      92  2389.............                                 611            7109
                                 ................  13....................      92  2389.............                                 612            7108
                                 ................  15....................      92  2391.............                                 613  ..............
                                 ................  16....................      92  2391.............                            601 note  ..............
 
             1984
Oct. 30.......................  98-577...........  502...................      98  3085.............                                414a            1706
 
             1988
Oct. 1........................  100-463..........  8141..................     102  2270-47..........                                405b            2304
Oct. 25.......................  100-533..........  502...................     102  2697.............                                417a            1713
Nov. 18.......................  100-690..........  5151..................     102  4304.............                            701 note  ..............
                                 ................  5152..................     102  4304.............                                 701            8102
                                 ................  5153..................     102  4306.............                                 702            8103
                                 ................  5154..................     102  4307.............                                 703            8104
                                 ................  5155..................     102  4307.............                                 704            8105
                                 ................  5156..................     102  4308.............                                 705            8106
                                 ................  5157, 5158............     102  4308.............                            706, 707            8101
                                 ................  5160..................     102  4308.............                            701 note  ..............
 
             1992
Oct. 29.......................  102-572..........  907(a)(3).............     106  4518.............                            611 note            7109
 
             1993
Nov. 30.......................  103-160..........  849(c), (d)...........     107  1725.............                               10b-2            8304
 
             1994
Oct. 13.......................  103-355..........  1054(b)...............     108  3265.............                           253h note            4102
                                 ................  8002..................     108  3386.............                            264 note            3307
 
             1996
Sept. 23......................  104-201..........  827...................     110  2611.............                               10b-3            8305
 
             1997
June 12.......................  105-18...........  7004..................     111  192..............                              253l-1            3904
 
             1999
Sept. 29......................  106-57...........  207...................     113  423..............                              253l-2            3904
Oct. 5........................  106-65...........  804...................     113  704..............                           253h note            4104
 
             2000
Dec. 21.......................  106-554..........  1(a)(2) [title I, Sec.     114  2763A-100........                              253l-3            3904
                                                     101].
                                 ................  1(a)(2) [title I, Sec.     114  2763A-108........                              253l-4            3904
                                                     110].
 
             2003
Feb. 20.......................  108-7............  div. H, title I, Sec.      117  350..............                              253l-5            3904
                                                    5.
                                 ................  div. H, title I, Sec.      117  354..............                                6a-3            6102
                                                    104.
                                 ................  div. H, title I, Sec.      117  357..............                              253l-6            3904
                                                    1002.
                                 ................  div. H, title I, Sec.      117  370..............                                6a-4            6102
                                                    1102.
                                 ................  div. H, title I, Sec.      117  373..............                              253l-7            3904
                                                    1202.
Aug. 15.......................  108-72...........  4.....................     117  889..............                              253l-8            3904
Nov. 24.......................  108-136..........  1412(a)...............     117  1664.............                            433 note            1703
                                 ................  1413..................     117  1665.............                            433 note            1703
                                 ................  1414..................     117  1666.............                            433 note            1128
                                 ................  1428..................     117  1670.............                           253a note            3306
                                 ................  1431(b)...............     117  1671.............                            405 note            1129
                                 ................  1441..................     117  1673.............                           428a note            1904
 
             2004
Oct. 28.......................  108-375..........  807(c)................     118  2011.............                           431a note            1908
 
             2006
Oct. 17.......................  109-364..........  834(b), (c) (related       120  2333.............                           253i note            4105
                                                    to (b)).
 
             2008
Jan. 28.......................  110-181..........  855...................     122  251..............                                433a            1704
June 30.......................  110-252..........  6102, 6103............     122  2386, 2387.......                            251 note            3509
Oct. 14.......................  110-417..........  [div. A], title VIII,      122  4537.............                             405c(a)            2303
                                                    841(a).
                                 ................  [div. A], title VIII,      122  4539.............                             405c(c)            2303
                                                    841(c).
                                 ................  [div. A], title VIII,      122  4547.............                           253h note            3302
                                                    863(a)-(e).
                                 ................  [div. A], title VIII,      122  4549.............                            254 note            3906
                                                    864(a), (b), (d),
                                                    (e), (f)(2), (g).
                                 ................  [div. A], title VIII,      122  4551.............                           254b note            4710
                                                    866.
                                 ................  [div. A], title VIII,      122  4551.............                            251 note            4711
                                                    867.
                                 ................  [div. A], title VIII,      122  4552.............                           254b note            3501
                                                    868.
                                 ................  [div. A], title VIII,      122  4553.............                           433a note            1704
                                                    869.
                                 ................  [div. A], title VIII,      122  4555.............                                417b            2313
                                                    872.
                                 ................  [div. A], title VIII,      122  4558.............                            405 note            2311
                                                    874(a).
--------------------------------------------------------------------------------------------------------------------------------------------------------


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


[[Page 11826]]

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Tennessee (Mr. Cohen) and the gentleman from California (Mr. Issa) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Tennessee.


                             General Leave

  Mr. COHEN. Mr. Speaker, I ask unanimous consent that all Members have 
5 legislative days to revise and extend their remarks and include 
extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Tennessee.
  There was no objection.
  Mr. COHEN. I yield myself such time as I may consume.
  H.R. 1107 codifies into positive law as title 41, United States Code, 
certain general and permanent laws related to public contracts. It is a 
rather extensive bill, fairly dry bill, that doesn't do much in the way 
of substance but does many technical corrections.
  It was prepared by the Office of Law Revision Counsel in coordination 
with our Judiciary Committee.
  This bill is not intended to make substantive changes in the law, but 
as is typical with the codification process, a number of nonsubstantive 
revisions are made, including the reorganization of sections into a 
more coherent overall structure. But these changes are not intended in 
any way to have any substantive effect, simply procedural, and make the 
code more easily used.
  The bill has been subject to extensive review in the previous two 
Congresses, by relevant congressional committees, agencies, and 
practitioners, as well as the public.
  Accordingly, I urge my colleagues to support this legislation.
  I reserve the balance of our time.
  Mr. ISSA. Mr. Speaker, I yield myself such time as I may consume.
  I support H.R. 1107, a bill proposed by the Office of Law Revision 
Counsel to update, improve, and for clarification of title 41 of the 
U.S. Code.
  Mr. Speaker, this, as the other speaker said, is, in fact, a very 
technical correction. The minority fully supports it, believes it is 
necessary.
  It passed on March 14 out of the Judiciary Committee unanimously on a 
voice vote.
  I yield back the balance of my time.
  Mr. COHEN. Mr. Speaker, I would like to note a question that has come 
to our attention with respect to a reporting requirement found in 41 
U.S.C. 405b(d) of the present law and restated as 41 U.S.C. 2304(c)(2) 
in the bill. There is a question whether that reporting requirement is 
still effective.
  Section 3003 of the Federal Reports Elimination and the Sunset Act of 
1995, 31 U.S.C. 1113 note, stated that each provision of law requiring 
the submission to Congress of any annual, semiannual, or other regular 
periodic report specified in a list that had been prepared by the House 
Clerk would cease to be effective as of May 15, 2000.
  The provision in question is listed on page 156 of that document.
  In this regard, it should be noted that, as positive law codification 
bills do not change substantive law, the restatement of a revision does 
not revive it if it has otherwise become ineffective.
  Thus, the reporting requirement, as restated, is effective to the 
extent, and only to the extent, that it was effective under the 
underlying source law on the day before the restatement was enacted.
  That is a matter for the agency and the committee of substantive 
jurisdiction to work out. If legislation removing that requirement from 
the text of the underlying law is enacted before final enrollment of 
this bill, that change can be reflected at that time, if and when it 
occurs.
  Mr. Speaker, this is a bill that shows bipartisanship. Mr. Issa has 
done a wonderful job representing his side of the aisle. I am proud to 
represent mine. Republicans and Democrats have come together on this 
bill. I would ask for a positive, unanimous vote on this important 
legislation.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in strong support of 
H.R. 1107, to enact certain laws relating to public contracts as Title 
41, United States Code, H.R. 1107. This important legislation was 
introduced jointly by Chairman Conyers and Ranking Member Smith.
  H.R. 1107 is not intended to make any substantive changes in the law. 
H.R. 1107 is a simple codification. There are a myriad of non- 
substantive revisions are made, including the reorganization of 
sections into a more coherent overall structure.
  Simply put, all H.R. 1107 does is codifies into positive law as title 
41, United States Code, certain general and permanent laws related to 
public contracts. This bill was prepared by the Office of Law Revision 
Counsel, as part of its functions under 2 U.S.C. Sec. 285(b).
  Lawyers run into public contract law in limited circumstances. 
Lawyers who represent firms that operate primarily in the commercial 
sector, but are tangentially active in the contracting community, often 
find that their clients have conflicts with the federal government.
  Additionally, lawyers may run into public contract issues when they 
represent subcontractors to large Department of Defense (DOD) 
contractors, who have potential or ongoing disputes with the prime 
contractor that they want to avoid or resolve.
  H.R. 1107 simplifies, codifies, and streamlines public contract law. 
H.R. 1107 has already been subject to extensive agency and public 
review in the last Congress, and the Congress before last. Given the 
extensive agency and public review and the simplicity of the bill, I 
urge my colleagues to support this bill and vote for it in the 
affirmative.
  Mr. COHEN. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Tennessee (Mr. Cohen) that the House suspend the rules 
and pass the bill, H.R. 1107.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________