[Senate Report 117-209]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 561

117th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 117-209

======================================================================
 
                     AGILE PROCUREMENT ACT OF 2022

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                             TO ACCOMPANY

                                S. 4623

                TO ADVANCE GOVERNMENT INNOVATION THROUGH
      LEADING-EDGE PROCUREMENT CAPABILITY, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               November 17, 2022.--Ordered to be printed
               
                             __________

                  U.S. GOVERNMENT PUBLISHING OFFICE                    
39-010                   WASHINGTON : 2022                   
-----------------------------------------------------------------------------------                     
             
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
   Tiffany Ann Shujath, U.S. Department of Homeland Security Detailee
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
                     
                     

                                                  Calendar No. 561

117th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 117-209

======================================================================                     
 
                     AGILE PROCUREMENT ACT OF 2022

                                _______
                                

               November 17, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 4623]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 4623) to advance 
Government innovation through leading-edge procurement 
capability, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................4
 IV. Section-by-Section Analysis of the Bill, as Reported.............4
  V. Evaluation of Regulatory Impact..................................7
 VI. Congressional Budget Office Cost Estimate........................7
VII. Changes in Existing Law Made by the Bill, as Reported...........10

                         I. Purpose and Summary

    S. 4623, the Advancing Government Innovation with Leading-
Edge Procurement Act of 2022 or the AGILE Procurement Act of 
2022, addresses key issues in federal procurement, including 
the current deficit of qualified procurement professionals at 
federal agencies, the need for better training and guidance on 
procurement of technology, and the need to address barriers to 
entry into government contracting for businesses, including 
small and non-traditional businesses. To address these issues, 
the bill requires the Office of Federal Procurement Policy 
(OFPP) to establish a pilot program to bring more professionals 
into federal procurement from other fields, including veterans, 
military spouses, and private sector professionals. 
Additionally, the bill requires the Federal Acquisition 
Institute (FAI) to provide specific training for the 
acquisition workforce on planning for and buying technology in 
a timely manner. The bill also requires OFPP to convene a 
working group to reduce barriers to government contracting for 
businesses, including small businesses, and to implement the 
working group's recommendations. The bill also enhances 
authorities for agencies to use streamlined methods for 
procurement of commercial technology; increases the threshold 
for mandatory use of the Cost Accounting Standards from $7.5 
million to $15 million;\1\ and allows for government-wide 
expansion of the Department of Defense (DoD) pilot authority to 
incentivize Employee Stock Ownership Plans.\2\
---------------------------------------------------------------------------
    \1\41 U.S.C. 1502(b).
    \2\Section 874, National Defense Authorization Act for Fiscal Year 
2022, Pub. L. No. 117-81.
---------------------------------------------------------------------------

              II. Background and Need for the Legislation

    Recent Government Accountability Office (GAO) trend 
analyses of government-wide contracting show that the amount of 
federal dollars obligated through contracts has been steadily 
increasing.\3\ Technology needs are growing and driving this 
trend; contract spending accounts for about 83% of the 
information technology budget. Cybersecurity, software, cloud 
computing, and artificial intelligence are all areas projected 
for strong spending growth.\4\
---------------------------------------------------------------------------
    \3\GAO WatchBlog, A Snapshot of Government-Wide Contracting for FY 
2020 (infographic) (Jun. 22, 2021) (www.gao.gov/blog/snapshot-
government-wide-contracting-fy-2020-infographic). See also GAO 
WatchBlog, A Snapshot of Government-Wide Contracting for FY 2018, 2019. 

    \4\National Defense Magazine, Strong Growth Expected in Federal IT 
Spending (Jan. 29, 
2022) (www.nationaldefensemagazine.org/articles/2021/9/2/strong-growth-
expected-in-federal-it-spending).
---------------------------------------------------------------------------
    With increasing technology needs and contract spending on 
the rise, a trained and experienced procurement workforce is 
critical. Current methods of recruiting and retention, however, 
have not maintained a sufficient pipeline of qualified 
procurement staff.\5\ A 2009 Homeland Security and Governmental 
Affairs Committee hearing entitled ``Strengthening the Federal 
Acquisition Workforce: Government-wide Leadership and 
Initiatives'' discussed similar issues.\6\ This outlook has 
continued to worsen; while the 2009 hearing record showed that 
half of the acquisition workforce would be eligible for 
retirement within 8 years, a 2016 strategic plan for the DoD 
acquisition workforce calculated that 57% of the workforce is 
either retirement eligible or within 10 years of retirement.\7\ 
This year, staffing challenges are expected as a large portion 
of the existing procurement workforce retires or moves out of 
public procurement.\8\
---------------------------------------------------------------------------
    \5\Office of Personnel Management, Acquisition Hiring Challenges 
Focus Group--Results 
Debriefing. (Jan. 2020) (www.fai.gov/sites/default/files/
2020%20Acquisition%20Hiring%20
Challenges%20and%20Recommendations.pdf).
    \6\Senate Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia, Strengthening the 
Federal Acquisition Workforce: Government-wide Leadership and 
Initiatives, 111th Cong. (Aug. 5, 2009) (S. Hrg. 111-388).
    \7\United States Army Acquisition Support Center, Filling the 
Bathtub (Mar. 24, 2022) (https://asc.army.mil/web/news-filling-the-
bathtub/).
    \8\Federal News Network, Public procurement trends and outlook for 
2022 (Apr. 26, 2022) (https://federalnewsnetwork.com/commentary/2022/
04/public-procurement-trends-]and-outlook-for
-2022/).
---------------------------------------------------------------------------
    At the same time that the number of procurement 
professionals is shrinking, technology trends are rapidly 
accelerating, creating a need for more advanced understanding 
of technology and the considerations that must be taken into 
account for these types of purchases. Training is important for 
the acquisition workforce as a whole, including for program 
managers and others involved in federal acquisition management, 
to ensure an understanding of both current technology trends 
and how best to acquire it.\9\ Choice of procurement method is 
also key, with agencies challenged to work at the ``speed of 
relevance'' of the technology they buy.\10\ Unlike in the past, 
procurements that take years from the requirements development 
to implementation stages will not be able to keep pace.\11\
---------------------------------------------------------------------------
    \9\National Security Commission on Artificial Intelligence, Final 
Report (Mar. 2021) (www.nscai.gov/wp-content/uploads/2021/03/Full-
Report-Digital-1.pdf).
    \10\Department of Defense News, DoD Restructures Acquisition, 
Technology Office to Improve Military Lethality, Speed (Aug. 2, 2017) 
(https://www.defense.gov/News/News-Stories/Article/
Article/1265231/dod-restructures-acquisition-technology-office-to-
improve-military-lethality-sp/#:
:text=%27The%20Speed%20of%20Relevance%27,emphasize%20management%20of%20b
usiness% 20enterprises).
    \11\Department of Defense, Report to Congress Restructuring the 
Department of Defense Acquisition, Technology and Logistics 
Organization and Chief Management Officer Organization, In Response to 
Section 901 of the National Defense Authorization Act for Fiscal Year 
2017 (Public Law 114-328) (Aug. 2017) (https://dod.defense.gov/Portals/
1/Documents/pubs/Section-901-FY-2017-NDAA-Report.pdf). See also The New 
York Times, Government Tech Moves Too Slooowly (July 7, 2021) 
(www.nytimes.com/2021/07/07/technology/jedi-government-tech.html).
---------------------------------------------------------------------------
    While federal contracting dollars are increasing year over 
year, the pool of federal contractors is shrinking, 
particularly with regard to new and small companies. A GAO 
study of DoD contracting from fiscal years 2011 to 2020 found 
that, while DoD contracts with small businesses increased by 
15%, the number of small businesses awarded DoD contracts 
decreased by almost half (43%). The number of large businesses 
receiving DoD contracts also fell by 7.3% per year during that 
time period.\12\ GAO recently found in a separate study that, 
under the Category Management initiative launched in 2016, the 
number of small businesses receiving contract awards under the 
initiative decreased each year, even though small businesses 
received 30% or more each year of these enterprise-wide 
contract dollars.\13\ GAO noted that some small businesses 
faced difficulties related to scalability and expensive 
certifications as barriers to their participation, as well as 
unclear public notice of contract opportunities for the ``best 
in class'' contracts under the Category Management 
initiative.\14\
---------------------------------------------------------------------------
    \12\Government Accountability Office, Small Business Contracting: 
Actions Needed to Implement and Monitor DOD's Small Business Strategy 
(GAO-22-104621) (Oct. 14, 2021).
    \13\Government Accountability Office, FEDERAL BUYING POWER, OMB Can 
Further Advance Category Management Initiative by Focusing on 
Requirements, Data, and Training (GAO-21-40) (Nov. 2020); ``Category 
Management'' is buying common products and services as an organized 
enterprise across government in order to increase efficiency and value, 
and achieve savings. Categories of spend include office supplies, 
pharmaceuticals, body armor and ammunition, information technology, 
training solutions, and many more products and services.
    \14\Government Accountability Office, FEDERAL BUYING POWER, OMB Can 
Further Advance Category Management Initiative by Focusing on 
Requirements, Data, and Training (GAO-21-40) (Nov. 2020).
---------------------------------------------------------------------------
    The findings of a July 2021 Bipartisan Policy Center report 
echoed those of GAO, including the importance of small 
businesses to United States economic activity, and the barriers 
to entry to federal contracting that they face. These barriers 
ranged from arduous requirements and difficulty in navigating 
the federal procurement process, to mistreatment by prime 
contractors when performing as subcontractors, to some doubting 
the true commitment of the federal government to small business 
considerations.
    The Bipartisan Policy Center report describes ``robust 
usage of small businesses in procurement'' as key to an 
``innovative and vibrant industrial base,'' and new, small 
firms as critical to keeping our ``competitive edge,'' the 
resiliency of our supply chains, and continuous job creation. 
Despite the importance of small businesses to national security 
and the economy as a whole, as well as local communities, 
annual small business goals are often unmet, and significant 
barriers to entry to federal contracting remain.\15\
---------------------------------------------------------------------------
    \15\Bipartisan Policy Center, Supporting Small Business and 
Strengthening the Economy Through Procurement Reform (Jul. 2021) 
(https://bipartisanpolicy.org/download/?file=/wp-content
/uploads/2021/06/Small-Business-Report_RV1-FINAL.pdf).
---------------------------------------------------------------------------
    Reducing the barriers to entry into government contracting 
for businesses, as well as acquisition of commercial technology 
where available, are also key to the federal government having 
access to the latest, most innovative solutions. A recent 
industry letter urged OMB to hold agencies to the long-standing 
requirement to consider commercial items first in order to 
realize greater efficiency and cost savings in acquisition of 
technology.\16\ Use of special procurement authorities such as 
``Commercial Solutions Opening,'' a streamlined method for 
acquiring innovative commercial technologies, can ensure robust 
competition while also reducing the burden for businesses 
offering their products and services. This procurement method 
is often used to attract start-up companies to provide 
technology to the government in support of agency operations 
and national security.\17\
---------------------------------------------------------------------------
    \16\Federal News Network, Buy vs. build debate for software heats 
back up with letter to White House (May 27, 2021) (https://
federalnewsnetwork.com/acquisition-policy/2021/05/buy-vs-build-debate-
for-software-heats-back-up-with-letter-to-white-house/).
    \17\Federal Acquisition Institute, Commercial Solutions Opening 
(Dec. 12, 2020) (www.fai.gov/content/commercial-solutions-opening).
---------------------------------------------------------------------------

                        III. Legislative History

    Chairman Gary Peters (D-MI) introduced S. 4623, the AGILE 
Procurement Act of 2022, on July 26, 2022, with Senator Joni 
Ernst (R-IA). The bill was referred to the Committee on 
Homeland Security and Governmental Affairs. Senator Thomas 
Carper (D-DE) later joined as a cosponsor on August 2, 2022.
    The Committee considered S. 4623 at a business meeting on 
August 3, 2022. The bill was ordered reported favorably by 
voice vote en bloc with Senators Peters, Hassan, Sinema, Rosen, 
Padilla, Ossoff, Lankford, Romney, Scott, and Hawley present.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section provides that the Act may be cited as the 
``Advancing Government Innovation with Leading-Edge Procurement 
Act of 2022'' or the ``AGILE Procurement Act of 2022.''

Sec. 2. Findings

    This section identifies congressional findings related to 
the Act, including findings related to federal government 
contract spend, technology and acquisition workforce needs, and 
shrinking industrial base.

Sec. 3. Definitions

    This section provides definitions for the terms 
``Acquisition Workforce,'' ``Administrator,'' ``Cross-
functional,'' ``Executive Agency,'' ``Experiential Learning,'' 
``Information and Communications Technology,'' ``Qualified 
Business Wholly-Owned Through an Employee Stock Ownership 
Plan,'' ``Relevant Committees of Congress,'' and ``Small 
Business.''

Sec. 4. Acquisition workforce

    Subsection (a) of Section 4 directs OFPP, in coordination 
with FAI and the Office of Personnel Management (OPM), to pilot 
a program, within 1 year of enactment, for entry of junior and 
mid-career professionals to the General Schedule Contracting 
series (GS-1102) workforce. When creating this program, OFPP 
must consider the inclusion of program participants from other 
job series and fields, including veterans, military spouses, 
and private sector procurement professionals. The program must 
provide alternatives to education and training requirements for 
entry into the GS-1102 workforce, such as allowing for use of 
educational credits in a technical discipline relevant to 
agency procurement. The program must also provide pathways to 
reciprocity or fulfillment of certification requirements for 
Department of Defense professional contracting certification 
holders and commercial sector acquisition certification 
holders, such as certified professional contract managers and 
certified federal contract managers. Finally, the program must 
provide a capstone class or experience and relevant mentorship 
opportunities.
    This subsection also requires OFPP to brief relevant 
committees of Congress on implementation of the pilot program 
not later than 2 years from enactment.
    This subsection requires that the duration of the pilot 
program shall be not less than 5 years from enactment.
    Subsection (b) directs FAI to incorporate experiential 
learning into the training framework for GS-1102s.
    Subsection (c) of Section 4 directs FAI, in coordination 
with OFPP, the General Services Administration (GSA), the Chief 
Information Officers Council, and the United States Digital 
Service, to provide a cross-functional information and 
communications technology acquisition training program to 
acquisition workforce members involved in acquiring information 
and communications technology. The training must include 
learning objectives related to market research and 
communicating with industry, developing requirements, 
acquisition planning, and awarding and administering contracts 
for information and communications technology. It must also 
include learning objectives that encourage the use of small 
business programs to acquire information and communications 
technology, as well as learning objectives that encourage the 
use of commercial or commercially available off-the-shelf 
(COTS) technologies to the greatest extent practicable. The 
training must include case studies of lessons learned from 
federal information and communications technology procurements 
and contracts, experiential learning opportunities, and 
continuous learning recommendations and resources to keep 
skills current. Finally, the training must be made available to 
acquisition workforce members designated by their agency 
acquisition leadership to participate in the training program.
    This subsection also requires FAI, within 18 months of 
enactment, to provide a briefing to the relevant committees of 
Congress, the Chief Acquisition Officers Council, and the Chief 
Information Officers Council on FAI's progress towards 
providing the information and communications technology 
acquisition training and a list of any congressionally mandated 
acquisition trainings that the Director determines to be 
outdated or no longer necessary for other reasons.
    This subsection requires the training program to be offered 
for a minimum of 5 years.

Sec. 5. Innovative procurement methods

    Subsection (a) directs OFPP to issue guidance within 1 year 
of enactment to inform agencies on the availability of 
streamlined and alternative methods for procurement of 
information and communications technology, and provide 
information on appropriate use, examples, and templates to 
assist the workforce in utilizing these methods.
    Subsection (b) amends Section 880 of the National Defense 
Authorization Act for Fiscal Year 2017 to make the GSA and 
Department of Homeland Security (DHS) Commercial Solutions 
Opening authorities permanent, increase the threshold, and 
provide authority to additional agencies besides DHS and GSA to 
use Commercial Solutions Opening authority where approved by 
the Office of Management and Budget.

Sec. 6. Addressing barriers to entry in federal contracting

    Subsection (a) directs OFPP, within 1 year of enactment, to 
provide guidance on when a wider range of projects should be 
accepted as relevant past performance in order to permit access 
to a wider pool of eligible firms with capability to perform. 
OFPP must also provide guidance on alternative evaluation 
methods that may be appropriate for a requirement without much 
precedent.
    Subsection (b) directs OFPP, within 90 days of enactment, 
to convene a working group or use an appropriate existing body 
to address barriers to entry for new contractors. The 
Addressing Barriers to Entry working group shall obtain input 
from the public, including from industry, on ways in which 
federal procurement policies and regulations are obsolete, 
overly burdensome or restrictive, serve to create barriers to 
participation in Federal contracting, or unnecessarily increase 
bid and proposal costs. The working group must then consider 
the input obtained from the public (and any other information 
determined to be appropriate by OFPP) to identify legislative, 
regulatory, and other actions to foster more resilient supply 
chains, provide access to a wider pool of qualified vendors, 
and increase opportunities for participation of new, small, and 
nontraditional businesses in the procurement process.
    This subsection requires OFPP, not later than 2 years after 
enactment, to implement the regulatory and other non-
legislative actions identified by the working group, and brief 
the relevant committees of Congress on the actions implemented 
as well as potential legislative actions identified by the 
working group.
    Subsection (c) raises the Cost Accounting Standards 
mandatory use threshold to $15 million.

Sec. 7. Incentivizing employee stock ownership plans for business 
        growth

    Subsection (a) allows OFPP to expand the Employee Stock 
Ownership Plan (ESOP) incentive program authorized by Section 
874 of the National Defense Authorization Act for Fiscal Year 
2022 for use government-wide. The ESOP pilot program provides 
authority for a non-competitive follow-on contract to a 
qualified ESOP if the performance of the ESOP on the prior 
contract was rated as satisfactory or better. This authority 
may be used for a single follow-on opportunity, unless the 
senior procurement executive at an agency or equivalent 
official waives the limitation.
    Subsection (b) requires OFPP to create verification and 
reporting procedures if a pilot program is established, 
including a requirement for a qualified business ESOP to 
certify that not more than 50 percent of the amount paid under 
the contract will be expended on subcontracts, subject to 
necessary and reasonable waivers.
    Subsection (c) sunsets any pilot program established by 
OFPP 5 years after enactment.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's (CBO) statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 9, 2022.
Hon. Gary C. Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed table summarizing estimated budgetary 
effects and mandates information for some of the legislation 
that has been ordered reported by the Senate Committee on 
Homeland Security and Governmental Affairs during the 117th 
Congress.
    If your wish further details, we will be pleased to provide 
them. The CBO staff contact for each estimate is listed on the 
enclosed table.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

           SUMMARY ESTIMATES OF LEGISLATION ORDERED REPORTED

    The Congressional Budget Act of 1974 requires the 
Congressional Budget Office, to the extent practicable, to 
prepare estimates of the budgetary effects of legislation 
ordered reported by Congressional authorizing committees. In 
order to provide the Congress with as much information as 
possible, the attached table summarizes information about the 
estimated direct spending and revenue effects of some of the 
legislation that has been ordered reported by the Senate 
Committee on Homeland Security and Governmental Affairs during 
the 117th Congress. The legislation listed in this table 
generally would have small effects, if any, on direct spending 
or revenues, CBO estimates. Where possible, the table also 
provides information about the legislation's estimated effects 
on spending subject to appropriation and on intergovernmental 
and private-sector mandates as defined in the Unfunded Mandates 
Reform Act.

                                                  ESTIMATED BUDGETARY EFFECTS AND MANDATES INFORMATION
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       Increases
                                                               Direct                 Spending Subject   Pay-As-You-   On-Budget
   Bill        Title        Status      Last      Budget     Spending,    Revenues,          to              Go         Deficits    Mandates    Contact
  Number                               Action    Function    2023-2032    2023-2032    Appropriation,    Procedures    Beginning
                                                                                          2023-2027        Apply?       in 2033?
--------------------------------------------------------------------------------------------------------------------------------------------------------
S. 4623    AGILE          Ordered     08/03/22  800         Between      0            Not estimated     Yes           No           No          Matthew
            Procurement    reported                          zero and                                                                           Pickford
            Act of 2022                                      $500,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
S. 4623 would amend federal recruitment, training, and retention policies to expand the pool of applicants for procurement and acquisition positions,
  establish a pilot program to hire and train staff to procure information and communications technology, and establish a working group to study the
  barriers private entities face when seeking to do business with the federal government. CBO estimates that enacting S. 4623 would have an
  insignificant effect on direct spending and no effect on revenues over the 2023-2032 period. CBO has not estimated the discretionary costs of
  implementing the bill. The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 41--PUBLIC CONTRACTS

           *       *       *       *       *       *       *


Subtitle I--Federal Procurement Policy

           *       *       *       *       *       *       *


DIVISION C--PROCUREMENT

           *       *       *       *       *       *       *



CHAPTER 15--COST ACCOUNTING STANDARDS

           *       *       *       *       *       *       *



SEC. 1502. COST ACCOUNTING STANDARDS.

    (a) * * *
    (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] $15,000,000.
                  (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[;] ; or
                          (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.]

           *       *       *       *       *       *       *


CHAPTER 33--PLANNING AND SOLICITATION

           *       *       *       *       *       *       *



SEC. 3301. FULL AND OPEN COMPETITION

           *       *       *       *       *       *       *


STATUTORY NOTES AND RELATED SUBSIDIARIES

           *       *       *       *       *       *       *


[PILOT PROGRAMS] PROGRAMS FOR AUTHORITY TO ACQUIRE INNOVATIVE 
                    COMMERCIAL ITEMS USING GENERAL SOLICITATION 
                    COMPETITIVE PROCEDURES.

    (a) Authority.--
          (1) * * *
          (2) Head of an agency.--In this section, the term 
        `head of an agency' means the following:
                  (A) The Secretary of Homeland Security.
                  (B) The Administrator of General Services.
                  (C) The head of an executive agency approved 
                for the program, on a pilot or permanent basis, 
                by the Director of the Office of Management and 
                Budget.
          (3) Applicability of section. Section applies to the 
        following agencies:
                  (A) The Department of Homeland Security.
                  (B) The General Services Administration.
                  (C) An executive agency approved for the 
                program by the Director of the Office of 
                Management and Budget.
    (b) Treatment as Competitive Procedures.--Use of general 
solicitation competitive procedures for the [pilot] program 
under subsection (a) shall be considered, in the case of the 
Department of Homeland Security and the General Services 
Administration, to be use of competitive procedures for 
purposes of division C of title 41, United States Code (as 
defined in section 152 of such title).
    (c) Limitation.--The head of an agency may not enter into a 
contract under the [pilot] program for an amount in excess of 
[$10,000,000] $25,000,000.
    (d) Guidance.--The head of an agency shall issue guidance 
for the implementation of the [pilot] program under this 
section within that agency. Such guidance shall be issued in 
consultation with the Office of Management and Budget and shall 
be posted for access by the public.
    (e) [Report Required.--
          [(1) In general.--Not later than three years after 
        the date of the enactment of this Act, the head of an 
        agency shall submit to the congressional committees 
        specified in paragraph (3) a report on the activities 
        the agency carried out under the pilot program.
          [(2) Elements of report.--Each report under this 
        subsection shall include the following:
                  [(A) An assessment of the impact of the pilot 
                program on competition.
                  [(B) A comparison of acquisition timelines 
                for--
                          [(i) procurements made using the 
                        pilot program; and
                          [(ii) procurements made using other 
                        competitive procedures that do not use 
                        general solicitations.
                  [(C) A recommendation on whether the 
                authority for the pilot program should be made 
                permanent.
          [(3) Specified congressional committees.--The 
        congressional committees specified in this paragraph 
        are the Committee on Homeland Security and Governmental 
        Affairs of the Senate and the Committee on Oversight 
        and Government Reform of the House of Representatives.]
    Reporting and Data Collection.--The head of an agency shall 
report information on contracts made using procedures under 
this section to the Office of Management and Budget as 
determined by the Office of Management and Budget. The 
Administrator shall collect and analyze data on the use of the 
authority under this section for the purposes of--
          (1) developing and sharing best practices;
          (2) gathering information on the implementation of 
        the authority and related policy issues; and
          (3) informing the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Reform of the House of Representatives on 
        the use of the authority.
    (f) [Innovative Defined.--In this section, the term 
`innovative' means--
          [(1) any new technology, process, or method, 
        including research and development; or
          [(2) any new application of an existing technology, 
        process, or method.]
    Definitions.--In this section--
          (1) the term `commercial product' includes a 
        commercial product or a commercial service, as those 
        terms are defined in sections 103 and 103a, 
        respectively, of title 41, United States Code; and
          (2) the term `innovative' means--
                  (A) any new technology, process, or method, 
                including research and development; or
                  (B) any new application of an existing 
                technology, process, or method.
    [(g) Termination.--The authority to enter into a contract 
under a pilot program under this section terminates on 
September 30, 2022.]

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