    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-350
    111th Congress

    An Act

    To enact certain laws relating to public contracts as title 41, United
    States Code, ``Public Contracts''. <>

    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.
    FEDERAL PROCUREMENT POLICY                               101
    OTHER ADVERTISING AND CONTRACT PROVISIONS               6101
    CONTRACT DISPUTES                                       7101
    MISCELLANEOUS                                           8101

    Subtitle I--Federal Procurement Policy

    Division A--General

    Chapter                                                             Sec.
    Definitions                                              101

    [[Page 3678]]

    Division B--Office of Federal Procurement Policy

    Establishment of Office and Authority and Functions of  1101
    Administrator
    Acquisition Councils                                    1301
    Cost Accounting Standards                               1501
    Agency Responsibilities and Procedures                  1701
    Simplified Acquisition Procedures                       1901
    Restrictions on Obtaining and Disclosing Certain        2101
    Information
    Miscellaneous                                           2301

    Division C--Procurement

    General                                                 3101
    Planning and Solicitation                               3301
    Truthful Cost or Pricing Data                           3501
    Awarding of Contracts                                   3701
    Specific Types of Contracts                             3901
    Task and Delivery Order Contracts                       4101
    Allowable Costs                                         4301
    Contract Financing                                      4501
    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.

    [[Page 3679]]

    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;
    (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

    [[Page 3680]]

    (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--

    [[Page 3681]]

    (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'' has the same meaning as the
    terms ``item'' and ``item of supply''.

    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

    [[Page 3682]]

    (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
    (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

    [[Page 3683]]

    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 support 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.

    [[Page 3684]]

    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.

    [[Page 3685]]

    (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;
    (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

    [[Page 3686]]

    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

    [[Page 3687]]

    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.

    [[Page 3688]]

    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--

    [[Page 3689]]

    (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.

    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.

    [[Page 3690]]

    (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.

    [[Page 3691]]

    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

    [[Page 3692]]

    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 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--

    [[Page 3693]]

    (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.--

    [[Page 3694]]

    (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.

    [[Page 3695]]

    (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 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.

    [[Page 3696]]

    (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 for level IV of the Executive
    Schedule.

    (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

    [[Page 3697]]

    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

    [[Page 3698]]

    (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

    [[Page 3699]]

    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
    (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

    [[Page 3700]]

    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

    [[Page 3701]]

    (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--

    [[Page 3702]]

    (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 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.

    [[Page 3703]]

    (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

    [[Page 3704]]

    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.

    [[Page 3705]]

    (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).
    (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

    [[Page 3706]]

    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--

    [[Page 3707]]

    (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

    [[Page 3708]]

    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

    [[Page 3709]]

    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 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--

    [[Page 3710]]

    (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

    [[Page 3711]]

    (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

    [[Page 3712]]

    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 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--

    [[Page 3713]]

    (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

    [[Page 3714]]

    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 individual assigned to a Federal agency pursuant to
    subchapter VI of chapter 33 of title 5.

    [[Page 3715]]

    (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
    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

    [[Page 3716]]

    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.--

    [[Page 3717]]

    (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

    [[Page 3718]]

    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--

    [[Page 3719]]

    (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
    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

    [[Page 3720]]

    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 $3,000.
    (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 $3,000 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.

    [[Page 3721]]

    (e) Equitable Distribution.--Purchases not greater than $3,000 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,

    [[Page 3722]]

    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 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

    [[Page 3723]]

    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.

    [[Page 3724]]

    (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

    [[Page 3725]]

    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.

    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--

    [[Page 3726]]

    (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.

    [[Page 3727]]

    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.

    [[Page 3728]]

    (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.

    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--

    [[Page 3729]]

    (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.

    [[Page 3730]]

    (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.

    [[Page 3731]]

    (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.

    [[Page 3732]]

    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.
    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

    [[Page 3733]]

    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.

    [[Page 3734]]

    (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

    [[Page 3735]]

    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
    (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.

    [[Page 3736]]

    (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

    [[Page 3737]]

    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 representatives of the Comptroller
    General 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;

    [[Page 3738]]

    (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
    (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

    [[Page 3739]]

    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.

    [[Page 3740]]

    (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:

    [[Page 3741]]

    (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.
    (2) Review and assessment of data.--

    [[Page 3742]]

    (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

    [[Page 3743]]

    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.--

    [[Page 3744]]

    (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.

    [[Page 3745]]

    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.
    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.

    [[Page 3746]]

    (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

    [[Page 3747]]

    (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--

    [[Page 3748]]

    (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--
    (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

    [[Page 3749]]

    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)--

    [[Page 3750]]

    (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 for level IV of the Executive Schedule (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;

    [[Page 3751]]

    (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

    [[Page 3752]]

    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 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

    [[Page 3753]]

    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

    [[Page 3754]]

    ``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

    [[Page 3755]]

    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, 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,

    [[Page 3756]]

    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.--

    [[Page 3757]]

    (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.

    [[Page 3758]]

    (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.--

    [[Page 3759]]

    (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 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.

    [[Page 3760]]

    (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.

    [[Page 3761]]

    (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

    [[Page 3762]]

    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
    (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

    [[Page 3763]]

    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).

    [[Page 3764]]

    (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 OR 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.

    [[Page 3765]]

    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 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.

    [[Page 3766]]

    (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

    [[Page 3767]]

    (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

    [[Page 3768]]

    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;
    (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

    [[Page 3769]]

    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.

    [[Page 3770]]

    (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

    [[Page 3771]]

    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

    [[Page 3772]]

    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-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

    [[Page 3773]]

    (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.

    [[Page 3774]]

    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.

    [[Page 3775]]

    (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-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

    [[Page 3776]]

    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

    [[Page 3777]]

    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

    [[Page 3778]]

    (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 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--

    [[Page 3779]]

    (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.

    [[Page 3780]]

    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.--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.

    [[Page 3781]]

    (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 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),

    [[Page 3782]]

    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--

    [[Page 3783]]

    (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.

    [[Page 3784]]

    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 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

    [[Page 3785]]

    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.

    [[Page 3786]]

    (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

    [[Page 3787]]

    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:
    (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.

    [[Page 3788]]

    (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,

    [[Page 3789]]

    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.

    [[Page 3790]]

    (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.

    [[Page 3791]]

    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:
    (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.

    [[Page 3792]]

    (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

    [[Page 3793]]

    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

    [[Page 3794]]

    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 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.

    [[Page 3795]]

    (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.

    [[Page 3796]]

    (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

    [[Page 3797]]

    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 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

    [[Page 3798]]

    (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.

    [[Page 3799]]

    (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.

    [[Page 3800]]

    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 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);

    [[Page 3801]]

    (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.
    Advertising                                             6101
    General Contract Provisions                             6301
    Contracts for Materials, Supplies, Articles, and        6501
    Equipment Exceeding $10,000
    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--

    [[Page 3802]]

    (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.

    [[Page 3803]]

    (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 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.

    [[Page 3804]]

    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;

    [[Page 3805]]

    (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

    [[Page 3806]]

    (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.

    [[Page 3807]]

    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 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,

    [[Page 3808]]

    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.

    [[Page 3809]]

    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

    [[Page 3810]]

    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 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.

    [[Page 3811]]

    (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

    [[Page 3812]]

    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

    [[Page 3813]]

    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 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

    [[Page 3814]]

    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

    [[Page 3815]]

    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)).

    [[Page 3816]]

    (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.
    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 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.

    [[Page 3817]]

    (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

    [[Page 3818]]

    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

    [[Page 3819]]

    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

    [[Page 3820]]

    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.--
    (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.

    [[Page 3821]]

    (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.

    [[Page 3822]]

    (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

    [[Page 3823]]

    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.--
    (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 amounts in controversy.--The
    Administrator, from time to time, may review the dollar amounts
    specified in paragraph (1) and adjust the amounts

    [[Page 3824]]

    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

    [[Page 3825]]

    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

    [[Page 3826]]

    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.
    Drug-Free Workplace                                     8101
    Buy American                                            8301
    Committee for Purchase From People Who Are Blind or     8501
    Severely Disabled
    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
    (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

    [[Page 3827]]

    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

    [[Page 3828]]

    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;

    [[Page 3829]]

    (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

    [[Page 3830]]

    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 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.

    [[Page 3831]]

    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.

    [[Page 3832]]

    (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

    [[Page 3833]]

    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.

    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.

    [[Page 3834]]

    (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.

    [[Page 3835]]

    (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.--

    [[Page 3836]]

    (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 for level IV of the Executive Schedule 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.

    [[Page 3837]]

    (B) The services those agencies provide.
    (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.

    [[Page 3838]]

    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) Person.--The term ``person'' means a corporation,
    partnership, business association of any kind, trust, joint-
    stock company, or individual.
    (4) 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.
    (5) Prime contractor.--The term ``prime contractor'' means a
    person that has entered into a prime contract with the Federal
    Government.
    (6) Prime contractor employee.--The term ``prime contractor
    employee'' means an officer, partner, employee, or agent of a
    prime contractor.
    (7) 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.
    (8) Subcontractor.--The term ``subcontractor''--

    [[Page 3839]]

    (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.
    (9) 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

    [[Page 3840]]

    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 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

    [[Page 3841]]

    (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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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)''.

    [[Page 3842]]

    (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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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'';

    [[Page 3843]]

    (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--

    [[Page 3844]]

    (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''.
    (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

    [[Page 3845]]

    (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--

    [[Page 3846]]

    (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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302, 3501(b), 3509,
    3906, 4710, and 4711) 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 (except
    sections 3302, 3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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

    [[Page 3847]]

    (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 (except sections
    3302, 3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 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''.

    [[Page 3848]]

    (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''.

    [[Page 3849]]

    (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 (except
    sections 3302, 3501(b), 3509, 3906, 4710, and 4711) 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''.

    [[Page 3850]]

    (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 (except sections 3302, 3501(b), 3509,
    3906, 4710, and 4711) 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
    sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle
    I of title 41''.
    (3) In section 111--

    [[Page 3851]]

    (A) in the section catchline, strike ``Federal
    Property and Administrative Services Act of 1949'' and
    substitute ``division C (except sections 3302, 3501(b),
    3509, 3906, 4710, and 4711) 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
    (Except Sections 1704 and 2303) of Subtitle I of Title
    41''; and
    (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''.
    (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
    (except sections 3302, 3501(b), 3509, 3906, 4710, and
    4711) 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
    (except sections 3302, 3501(b), 3509, 3906, 4710, and
    4711) 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 (except sections 1704 and 2303) 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 (except sections 1704 and 2303)
    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''.

    [[Page 3852]]

    (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 (except sections 1704 and 2303) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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
    (except sections 3302, 3501(b), 3509, 3906, 4710, and
    4711) 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
    (except sections 3302, 3501(b), 3509, 3906, 4710, and
    4711) 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--

    [[Page 3853]]

    (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 (except sections 3302, 3501(b), 3509, 3906, 4710, and
    4711) 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
    (except sections 3302, 3501(b), 3509, 3906, 4710, and
    4711) 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 (except sections 3302,
    3501(b), 3509, 3906, 4710, and 4711) 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'';

    [[Page 3854]]

    (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 (except sections 1704 and 2303) 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, to issue a policy shall be done not later than 270 days
    after October 14, 2008.

    [[Page 3855]]

    (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 Law         Section                                       --------------------------------------
    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).

    [[Page 3856]]

    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            ......  .....................  43a..................            6509
    sentence), (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        54  474..................  6kk..................  ..............
    to R.S. Sec. 3709)
    under heading
    ``Botanic Garden'').
    .....................  (last par. (related        54  474..................  16b..................  ..............
    to 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

    [[Page 3857]]

    .....................  3(a).................      54  1111.................  6b...................  ..............
    .....................  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

    [[Page 3858]]

    .....................  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
    .....................  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                103
    item'').                                              item'').
    .....................  314A                   ......  .....................  264a                              110
    (``nondevelopmental                                   (``nondevelopmental
    item'').                                              item'').
    .....................  314A (``component'').  ......  .....................  264a (``component'').             105
    .....................  314A (``commercial     ......  .....................  264a (``commercial                102
    component'').                                         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........  ..............

    [[Page 3859]]

    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
    .....................  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

    [[Page 3860]]

    .....................  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),     ......  .....................  605..................            7103
    (e).
    .....................  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
    .....................  12...................      92  2389.................  611..................            7109
    .....................  13...................      92  2389.................  612..................            7108
    .....................  15...................      92  2391.................  613..................  ..............
    .....................  16...................      92  2391.................  601 note.............  ..............

    [[Page 3861]]

    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,         114  2763A-100............  253l-3...............            3904
    Sec. 101].
    .....................  1(a)(2) [title I,         114  2763A-108............  253l-4...............            3904
    Sec. 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

    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.

    [[Page 3862]]

    .....................  [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
    ----------------------------------------------------------------------------------------------------------------

    Approved January 4, 2011.

    LEGISLATIVE HISTORY--H.R. 1107:
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 111-42 (Comm. on the Judiciary).
    CONGRESSIONAL RECORD:
    Vol. 155 (2009):
    May 6, considered and passed House.
    Vol. 156 (2010):
    Dec. 2, considered and passed
    Senate, amended.
    Dec. 16, 17, House considered and
    concurred in Senate amendments.