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Enrolled Bill

 
[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[S. 1587 Enrolled Bill (ENR)]

        S.1587

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To revise and streamline the acquisition laws of the Federal 
Government, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Acquisition Streamlining Act 
of 1994''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.

                       TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                   Part I--Armed Services Acquisitions


                    SUBPART A--COMPETITION REQUIREMENTS

Sec. 1001. References to Federal Acquisition Regulation.
Sec. 1002. Establishment or maintenance of alternative sources of 
supply.
Sec. 1003. Clarification of approval authority for use of procedures 
other than full and open competition.
Sec. 1004. Task and delivery order contracts.
Sec. 1005. Acquisition of expert services.


         SUBPART B--PLANNING, SOLICITATION, EVALUATION, AND AWARD

Sec. 1011. Source selection factors.
Sec. 1012. Solicitation provision regarding evaluation of purchase 
options.
Sec. 1013. Prompt notice of award.
Sec. 1014. Post-award debriefings.
Sec. 1015. Protest file.
Sec. 1016. Agency actions on protests.


                       SUBPART C--KINDS OF CONTRACTS

Sec. 1021. Repeal of requirement for Secretarial determination regarding 
use of cost type or incentive contract.
Sec. 1022. Revision and reorganization of multiyear contracting 
authority.


                         SUBPART D--MISCELLANEOUS

Sec. 1031. Repeal of requirement for annual report by advocates for 
competition.

                  Part II--Civilian Agency Acquisitions


                    SUBPART A--COMPETITION REQUIREMENTS

Sec. 1051. References to Federal Acquisition Regulation.
Sec. 1052. Establishment or maintenance of alternative sources of 
supply.
Sec. 1053. Clarification of approval authority for use of procedures 
other than full and open competition.
Sec. 1054. Task and delivery order contracts.
Sec. 1055. Acquisition of expert services.


         SUBPART B--PLANNING, SOLICITATION, EVALUATION, AND AWARD

Sec. 1061. Solicitation, evaluation, and award.
Sec. 1062. Solicitation provision regarding evaluation of purchase 
options.
Sec. 1063. Prompt notice of award.
Sec. 1064. Post-award debriefings.
Sec. 1065. Protest file.
Sec. 1066. Agency actions on protests.


                       SUBPART C--KINDS OF CONTRACTS

Sec. 1071. Repeal of agency head determination regarding use of cost 
type or incentive contract.
Sec. 1072. Multiyear contracting authority.
Sec. 1073. Severable services contracts crossing fiscal years.
Sec. 1074. Economy Act purchases.

                    Part III--Acquisitions Generally

Sec. 1091. Policy regarding consideration of contractor past 
performance.
Sec. 1092. Repeal of requirement for annual report on competition.
Sec. 1093. Discouragement of nonstandard contract clauses.

                    Subtitle B--Truth in Negotiations

                   Part I--Armed Services Acquisitions

Sec. 1201. Stabilization of dollar threshold of applicability.
Sec. 1202. Exceptions to cost or pricing data requirements.
Sec. 1203. Restrictions on additional authority to require cost or 
pricing data or other information.
Sec. 1204. Additional special rules for commercial items.
Sec. 1205. Right of United States to examine contractor records.
Sec. 1206. Required regulations.
Sec. 1207. Consistency of time references.
Sec. 1208. Exception for transfers between divisions, subsidiaries, and 
affiliates.
Sec. 1209. Coverage of Coast Guard and NASA for interest and payments on 
certain overpayments.
Sec. 1210. Repeal of superseded provision.

                  Part II--Civilian Agency Acquisitions

Sec. 1251. Revision of civilian agency provisions to ensure uniform 
treatment of cost or pricing data.
Sec. 1252. Repeal of obsolete provision.

                  Subtitle C--Research and Development

Sec. 1301. Research projects.

                    Subtitle D--Procurement Protests

               Part I--Protests to the Comptroller General

Sec. 1401. Protest defined.
Sec. 1402. Review of protests and effect on contracts pending decision.
Sec. 1403. Decisions on protests.
Sec. 1404. Regulations.

     Part II--Protests in Procurements of Automatic Data Processing

Sec. 1431. Revocation of delegations of procurement authority.
Sec. 1432. Authority of the General Services Administration Board of 
Contract Appeals.
Sec. 1433. Periods for certain actions.
Sec. 1434. Dismissals of protests.
Sec. 1435. Award of costs.
Sec. 1436. Dismissal agreements.
Sec. 1437. Matters to be covered in regulations.
Sec. 1438. Definition of protest.
Sec. 1439. Oversight of acquisition of automatic data processing 
equipment by Federal agencies.

           Subtitle E--Policy, Definitions, and Other Matters

                   Part I--Armed Services Acquisitions

Sec. 1501. Repeal of policy statement.
Sec. 1502. Definitions.
Sec. 1503. Delegation of procurement functions.
Sec. 1504. Determinations and decisions.
Sec. 1505. Restrictions on undefinitized contractual actions.
Sec. 1506. Repeal of requirement relating to production special tooling 
and production special test equipment.
Sec. 1507. Regulations for bids.

                  Part II--Civilian Agency Acquisitions

Sec. 1551. Definitions.
Sec. 1552. Delegation of procurement functions.
Sec. 1553. Determinations and decisions.
Sec. 1554. Repeal of preference for recycled toner cartridges.
Sec. 1555. Cooperative purchasing.

                    TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                   Part I--Armed Services Acquisitions

Sec. 2001. Contract financing.
Sec. 2002. Repeal of vouchering procedures section.

                  Part II--Civilian Agency Acquisitions

Sec. 2051. Contract financing.

                    Part III--Acquisitions Generally

Sec. 2091. Government-wide application of payment protections for 
subcontractors and suppliers.

                       Subtitle B--Cost Principles

                   Part I--Armed Services Acquisitions

Sec. 2101. Allowable contract costs.
Sec. 2102. Repeal of authority for contract profit controls during 
emergency periods.

                  Part II--Civilian Agency Acquisitions

Sec. 2151. Allowable contract costs.

                    Part III--Acquisitions Generally

Sec. 2191. Travel expenses of Government contractors.
Sec. 2192. Revision of cost principle relating to entertainment, gift, 
and recreation costs for contractor employees.

                 Subtitle C--Audit and Access to Records

                   Part I--Armed Services Acquisitions

Sec. 2201. Consolidation and revision of authority to examine records of 
contractors.

                  Part II--Civilian Agency Acquisitions

Sec. 2251. Authority to examine records of contractors.

                     Subtitle D--Claims and Disputes

                   Part I--Armed Services Acquisitions

Sec. 2301. Certification of contract claims.
Sec. 2302. Shipbuilding claims.

                     Part II--Acquisitions Generally

Sec. 2351. Contract Disputes Act improvements.
Sec. 2352. Extension of alternative dispute resolution authority.
Sec. 2353. Expedited resolution of contract administration matters.
Sec. 2354. Authority for district courts to obtain advisory opinions 
from boards of contract appeals in certain cases.

                        Subtitle E--Miscellaneous

                   Part I--Armed Services Acquisitions

Sec. 2401. Clarification of provision relating to quality control of 
certain spare parts.
Sec. 2402. Contractor guarantees regarding weapon systems.

                     Part II--Acquisitions Generally

Sec. 2451. Section 3737 of the Revised Statutes: expansion of authority 
to prohibit setoffs against assignees; reorganization of section; 
revision of obsolete provisions.
Sec. 2452. Repeal of requirement for deposit of contracts with GAO.
Sec. 2453. Repeal of obsolete deadline regarding procedural regulations 
for the Cost Accounting Standards Board.
Sec. 2454. Codification of accounting requirement for contracted 
advisory and assistance services.
Sec. 2455. Uniform suspension and debarment.

         TITLE III--SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES

                   Subtitle A--Major Systems Statutes

Sec. 3001. Weapon development and procurement schedules.
Sec. 3002. Selected acquisition report requirement.
Sec. 3003. Unit cost report requirement.
Sec. 3004. Requirement for independent cost estimate and manpower 
estimate before development or production.
Sec. 3005. Baseline description.
Sec. 3006. Repeal of requirement for competitive prototyping for major 
programs.
Sec. 3007. Repeal of requirement for competitive alternative sources for 
major programs.

                      Subtitle B--Testing Statutes

Sec. 3011. Authority of Director of Operational Test and Evaluation to 
communicate views directly to Secretary of Defense.
Sec. 3012. Responsibility of Director of Operational Test and Evaluation 
for live fire testing.
Sec. 3013. Requirement for unclassified version of annual report on 
operational test and evaluation.
Sec. 3014. Survivability and lethality testing.
Sec. 3015. Limitation on quantities to be procured for low-rate initial 
production.

                    Subtitle C--Service Specific Laws

Sec. 3021. Gratuitous services of officers of certain reserve 
components.
Sec. 3022. Authority to rent samples, drawings, and other information to 
others.
Sec. 3023. Repeal of application of Public Contracts Act to certain 
naval vessel contracts.
Sec. 3024. Repeal of requirement for construction of vessels on Pacific 
coast.
Sec. 3025. Scientific investigation and research for the Navy.

                   Subtitle D--Civil Reserve Air Fleet

Sec. 3031. Definitions.
Sec. 3032. Consolidation of provisions relating to contractual 
commitment of aircraft.
Sec. 3033. Use of military installations by contractors.

                        Subtitle E--Miscellaneous

Sec. 3061. Regulations on procurement, production, warehousing, and 
supply distribution functions.
Sec. 3062. Repeal of requirements regarding product evaluation 
activities.
Sec. 3063. Department of Defense acquisition of intellectual property 
rights.
Sec. 3064. Liquid fuels and natural gas: contracts for storage, 
handling, or distribution.
Sec. 3065. Codification and revision of limitation on lease of vessels, 
aircraft, and vehicles.
Sec. 3066. Soft drink supplies.
Sec. 3067. Disbursement of funds of military department to cover 
obligations of another agency of Department of Defense.

               TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD

                 Subtitle A--Establishment of Threshold

Sec. 4001. Simplified acquisition threshold defined.
Sec. 4002. Establishment of simplified acquisition threshold for armed 
services.
Sec. 4003. Establishment of simplified acquisition threshold for 
civilian agencies.
Sec. 4004. Small business reservation.

  Subtitle B--Inapplicability of Laws to Acquisitions At or Below the 
                    Simplified Acquisition Threshold

Sec. 4101. List of inapplicable laws in Federal Acquisition Regulation.
Sec. 4102. Armed services acquisitions.
Sec. 4103. Civilian agency acquisitions.
Sec. 4104. Acquisitions generally.

              Subtitle C--Simplified Acquisition Procedures

Sec. 4201. Simplified acquisition procedures.
Sec. 4202. Procurement notice.
Sec. 4203. Implementation of simplified acquisition procedures.

                  Subtitle D--Micro-Purchase Procedures

Sec. 4301. Procedures for purchases below micro-purchase threshold.

                    Subtitle E--Conforming Amendments

Sec. 4401. Armed services acquisitions.
Sec. 4402. Civilian agency acquisitions.
Sec. 4403. Office of Federal Procurement Policy Act.
Sec. 4404. Small Business Act.

                     TITLE V--ACQUISITION MANAGEMENT

                 Subtitle A--Armed Services Acquisitions

Sec. 5001. Performance based management.
Sec. 5002. Review of acquisition program cycle.

                Subtitle B--Civilian Agency Acquisitions

Sec. 5051. Performance based management.
Sec. 5052. Results-oriented acquisition process.

                       Subtitle C--Pilot Programs

Sec. 5061. OFPP test program for executive agencies.
Sec. 5062. NASA mid-range procurement test program.
Sec. 5063. Federal Aviation Administration acquisition pilot program.
Sec. 5064. Department of Defense acquisition pilot programs.

                        Subtitle D--Miscellaneous

Sec. 5091. Vendor and employee excellence awards.
Sec. 5092. Waiting period for significant changes proposed for 
acquisition regulations.
Sec. 5093. Sense of Congress on negotiated rulemaking.

               TITLE VI--OTHER PROCUREMENT-RELATED MATTERS

Sec. 6001. Post-employment rules.
Sec. 6002. Contracting functions performed by Federal personnel.
Sec. 6003. Repeal of executed requirement for study and report.
Sec. 6004. Interests of Members of Congress.
Sec. 6005. Whistleblower protections for contractor employees of 
Department of Defense, Coast Guard, and National Aeronautics and Space 
Administration.
Sec. 6006. Whistleblower protections for contractor employees of 
civilian agencies.
Sec. 6007. Comptroller General review of the provision of legal advice 
for Inspectors General.
Sec. 6008. Cost savings for official travel.
Sec. 6009. Prompt resolution of audit recommendations.

            TITLE VII--SMALL BUSINESS AND SOCIOECONOMIC LAWS

                     Subtitle A--Small Business Laws

Sec. 7101. Repeal of certain requirements.
Sec. 7102. Contracting program for certain small business concerns.
Sec. 7103. Extension of test program for negotiation of comprehensive 
small business subcontracting plans.
Sec. 7104. Small Business Procurement Advisory Council.
Sec. 7105. Extension of defense contract goal to Coast Guard and 
National Aeronautics and Space Administration.
Sec. 7106. Procurement goals for small business concerns owned by women.
Sec. 7107. Development of definitions regarding certain small business 
concerns.
Sec. 7108. Functions of Office of Federal Procurement Policy relating to 
small business.

                     Subtitle B--Socioeconomic Laws

Sec. 7201. Acquisitions generally.
Sec. 7202. Prohibition on use of funds for documenting economic or 
employment impact of certain acquisition programs.
Sec. 7203. Merit-based award of contracts and grants.
Sec. 7204. Maximum practicable opportunities for apprentices on Federal 
construction projects.
Sec. 7205. Repeal of obsolete provision.
Sec. 7206. Repeal of obsolete and redundant provisions of law.

      Subtitle C--Waiver of Application of Prevailing Wage-Setting 
                       Requirements to Volunteers

Sec. 7301. Short title.
Sec. 7302. Purpose.
Sec. 7303. Waiver for individuals who perform volunteer services for 
public entities.
Sec. 7304. Waiver for individuals who perform volunteer services for 
nonprofit entities.
Sec. 7305. Contracts affected.
Sec. 7306. Report.

                      TITLE VIII--COMMERCIAL ITEMS

                 Subtitle A--Definitions and Regulations

Sec. 8001. Definitions.
Sec. 8002. Regulations on acquisition of commercial items.
Sec. 8003. List of inapplicable laws in Federal Acquisition Regulation.

                 Subtitle B--Armed Services Acquisitions

Sec. 8101. Establishment of new chapter in title 10.
Sec. 8102. Relationship to other provisions of law.
Sec. 8103. Definitions.
Sec. 8104. Preference for acquisition of commercial items.
Sec. 8105. Inapplicability of certain provisions of law.
Sec. 8106. Presumption that technical data under contracts for 
commercial items are developed exclusively at private expense.

                Subtitle C--Civilian Agency Acquisitions

Sec. 8201. Relationship to other provisions of law.
Sec. 8202. Definitions.
Sec. 8203. Preference for acquisition of commercial items.
Sec. 8204. Inapplicability of certain provisions of law.

                   Subtitle D--Acquisitions Generally

Sec. 8301. Inapplicability of certain provisions of law.
Sec. 8302. Flexible deadlines for submission of offers of commercial 
items.
Sec. 8303. Additional responsibilities for advocates for competition.
Sec. 8304. Provisions not affected.
Sec. 8305. Comptroller General review of Federal Government use of 
market research.

             TITLE IX--FEDERAL ACQUISITION COMPUTER NETWORK

Sec. 9001. Federal acquisition computer network architecture and 
implementation.
Sec. 9002. Implementation of FACNET capability in armed services.
Sec. 9003. Implementation of FACNET capability in civilian agencies.
Sec. 9004. GAO determination of eligible agency contracts.

               TITLE X--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 10001. Effective date and applicability.
Sec. 10002. Implementing regulations.
Sec. 10003. Evaluation by the Comptroller General.
Sec. 10004. Data collection through the Federal Procurement Data System.
Sec. 10005. Technical and clerical amendments.

                      TITLE I--CONTRACT FORMATION
                    Subtitle A--Competition Statutes

                  PART I--ARMED SERVICES ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1001. REFERENCES TO FEDERAL ACQUISITION REGULATION.

    Section 2304 of title 10, United States Code, is amended--
        (1) in subsection (a)(1)(A), by striking out ``modifications'' 
    and all that follows through ``note)'' and inserting in lieu 
    thereof ``Federal Acquisition Regulation''; and
        (2) in subsection (g)(1), by striking out ``regulations 
    modified'' and all that follows through ``note)'' and inserting in 
    lieu thereof ``Federal Acquisition Regulation''.

SEC. 1002. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE SOURCES OF 
              SUPPLY.

    (a) Additional Justification for Establishing or Maintaining 
Alternative Sources.--Section 2304(b)(1) of such title is amended--
        (1) by striking out ``or'' at the end of subparagraph (B);
        (2) by striking out the period at the end of subparagraph (C) 
    and inserting in lieu thereof a semicolon; and
        (3) by adding at the end the following new subparagraphs:
        ``(D) would ensure the continuous availability of a reliable 
    source of supply of such property or service;
        ``(E) would satisfy projected needs for such property or 
    service determined on the basis of a history of high demand for the 
    property or service; or
        ``(F) in the case of medical supplies, safety supplies, or 
    emergency supplies, would satisfy a critical need for such 
    supplies.''.
    (b) Prohibition on Use of Classes of Purchases or Contracts.--
Section 2304(b) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(4) A determination under paragraph (1) may not be made for a 
class of purchases or contracts.''.

SEC. 1003. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF PROCEDURES 
              OTHER THAN FULL AND OPEN COMPETITION.

    Section 2304(f)(1)(B)(i) of title 10, United States Code, is 
amended by inserting before the semicolon at the end the following: 
``or by an official referred to in clause (ii), (iii), or (iv)''.

SEC. 1004. TASK AND DELIVERY ORDER CONTRACTS.

    (a) Authority.--(1) Chapter 137 of title 10, United States Code, is 
amended by inserting after section 2304 the following new sections:

``Sec. 2304a. Task and delivery order contracts: general authority

    ``(a) Authority To Award.--Subject to the requirements of this 
section, section 2304c of this title, and other applicable law, the 
head of an agency may enter into a task or delivery order contract (as 
defined in section 2304d of this title) for procurement of services or 
property.
    ``(b) Solicitation.--The solicitation for a task or delivery order 
contract shall include the following:
        ``(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, if any.
        ``(2) The maximum quantity or dollar value of the services or 
    property to be procured under the contract.
        ``(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 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 subsection (c) of section 
2304 of this title applies to the contract and the use of such 
procedures is approved in accordance with subsection (f) of such 
section.
    ``(d) Single and Multiple Contract Awards.--(1) The head of an 
agency may exercise the authority provided in this section--
        ``(A) to award a single task or delivery order contract; or
        ``(B) if the solicitation states that the head of the agency 
    has the option to do so, to award separate task or delivery order 
    contracts for the same or similar services or property to two or 
    more sources.
    ``(2) No determination under section 2304(b) of this title is 
required for award of multiple task or delivery order contracts under 
paragraph (1)(B).
    ``(3) The regulations implementing this subsection shall--
        ``(A) establish a preference for awarding, to the maximum 
    extent practicable, multiple task or delivery order contracts for 
    the same or similar services or property under the authority of 
    paragraph (1)(B); and
        ``(B) establish 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 2304b 
of this title, this section does not apply to a task or delivery order 
contract for the procurement 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 agency or the Administrator of General Services to enter into 
schedule, multiple award, or task or delivery order contracts under any 
other provision of law.

``Sec. 2304b. Task order contracts: advisory and assistance services

    ``(a) Authority To Award.--(1) Subject to the requirements of this 
section, section 2304c of this title, and other applicable law, the 
head of an agency may enter into a task order contract (as defined in 
section 2304d of this title) for procurement of advisory and assistance 
services.
    ``(2) The head of an agency may enter into a task order contract 
for procurement of advisory and assistance services only under the 
authority of this section.
    ``(b) Limitation on 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 five years unless a longer period is specifically 
authorized in a law that is applicable to such contract.
    ``(c) Content of Notice.--The notice required by section 18 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 416) 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.
    ``(d) Required Content of Solicitation and Contract.--(1) The 
solicitation for the proposed task order contract shall include the 
information (regarding services) described in section 2304a(b) of this 
title.
    ``(2) 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.
    ``(e) Multiple Awards.--(1) The head of an agency may, on the basis 
of one solicitation, award separate task order contracts under this 
section for the same or similar services to two or more sources if the 
solicitation states that the head of the agency has the option to do 
so.
    ``(2) If, in the case of a task order contract for advisory and 
assistance services to be entered into under this section, the contract 
period is to exceed three 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 agency may also 
    elect to award only one task order contract if the head of the 
    agency determines in writing that only one of the offerers is 
    capable of providing the services required at the level of quality 
    required.
    ``(3) Paragraph (2) does not apply in the case of a solicitation 
for which the head of the agency concerned determines in writing that, 
because the services required under the task order contract are unique 
or highly specialized, it is not practicable to award more than one 
contract.
    ``(f) Contract Modifications.--(1) 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) Unless use of procedures other than competitive procedures is 
authorized by an exception in subsection (c) of section 2304 of this 
title and approved in accordance with subsection (f) of such section, 
competitive procedures shall be used for making such a modification.
    ``(3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15 
U.S.C. 637(e)).
    ``(g) Contract Extensions.--(1) Notwithstanding the limitation on 
the contract period set forth in subsection (b) or in a solicitation or 
contract pursuant to subsection (e), a task order contract entered into 
by the head of an agency under this section may be extended on a sole-
source basis for a period not exceeding six months if the head of such 
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 in order to ensure continuity 
    of the receipt of services pending the award of, and commencement 
    of performance under, the follow-on contract.
    ``(2) A task order contract may be extended under the authority of 
paragraph (1) only once and only in accordance with the limitations and 
requirements of this subsection.
    ``(h) 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 
an agency entering into such contract determines that, under the 
contract, advisory and assistance services are necessarily incident to, 
and not a significant component of, the contract.
    ``(i) Advisory and Assistance Services Defined.--In this section, 
the term `advisory and assistance services' has the meaning given such 
term in section 1105(g) of title 31.

``Sec. 2304c. Task and delivery order contracts: orders

    ``(a) 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 such order under section 18 of the 
    Office of Federal Procurement Policy Act (41 U.S.C. 416) or section 
    8(e) of the Small Business Act (15 U.S.C. 637(e)).
        ``(2) Except as provided in subsection (b), a competition (or a 
    waiver of competition approved in accordance with section 2304(f) 
    of this title) that is separate from that used for entering into 
    the contract.
    ``(b) Multiple Award Contracts.--When multiple task or delivery 
order contracts are awarded under section 2304a(d)(1)(B) or 2304b(e) of 
this title, all contractors awarded such 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 agency's need for the services or property ordered is 
    of such unusual urgency that providing such opportunity to all such 
    contractors would result in unacceptable delays in fulfilling that 
    need;
        ``(2) only one such contractor 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 in order to satisfy a minimum guarantee.
    ``(c) 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.
    ``(d) Protests.--A protest is not authorized in connection with the 
issuance or proposed issuance of a task or delivery order except for a 
protest on the ground that the order increases the scope, period, or 
maximum value of the contract under which the order is issued.
    ``(e) Task and Delivery Order Ombudsman.--Each head of an agency 
who awards multiple task or delivery order contracts pursuant to 
section 2304a(d)(1)(B) or 2304b(e) of this title shall appoint or 
designate a task and delivery order ombudsman who shall be responsible 
for reviewing complaints from the contractors on such 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 (b). 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 agency's competition advocate.
    ``(f) Applicability.--This section applies to task and delivery 
order contracts entered into under sections 2304a and 2304b of this 
title.

``Sec. 2304d. Task and delivery order contracts: definitions

    ``In sections 2304a, 2304b, and 2304c of this title:
        ``(1) The term `task order contract' means a contract for 
    services that does not procure or specify a firm quantity of 
    services (other than a minimum or maximum quantity) and that 
    provides for the issuance of orders for the performance of tasks 
    during the period of the contract.
        ``(2) The term `delivery order contract' means a contract for 
    property that does not procure or specify a firm quantity of 
    property (other than a minimum or maximum quantity) and that 
    provides for the issuance of orders for the delivery of property 
    during the period of the contract.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2304 the 
following new items:
``2304a. Task and delivery order contracts: general authority.
``2304b. Task order contracts: advisory and assistance services.
``2304c. Task and delivery order contracts: orders.
``2304d. Task and delivery order contracts: definitions.''.
    (b) Repeal of Superseded Provision.--Section 2304 of title 10, 
United States Code, is amended by striking out subsection (j).
    (c) Conforming Amendment for Professional and Technical Services.--
Section 2331 of title 10, United States Code, is amended by striking 
out subsection (c).
    (d) Provisions Not Affected.--Nothing in section 2304a, 2304b, 
2304c, or 2304d of title 10, United States Code, as added by subsection 
(a), and nothing in the amendments made by subsections (b) and (c), 
shall be construed as modifying or superseding, or as intended to 
impair or restrict, authorities or responsibilities under--
        (1) the Brooks Automatic Data Processing Act (section 111 of 
    the Federal Property and Administrative Services Act of 1949 (40 
    U.S.C. 759)); and
        (2) the Brooks Architect-Engineers Act (title IX of the Federal 
    Property and Administrative Services Act of 1949 (40 U.S.C. 541 et 
    seq.)).

SEC. 1005. ACQUISITION OF EXPERT SERVICES.

    Section 2304(c)(3) of title 10, United States Code, is amended--
        (1) by striking out ``or (B)'' and inserting in lieu thereof 
    ``(B)''; and
        (2) by inserting before the semicolon at the end the following: 
    ``, or (C) to procure the services of an expert for use, in any 
    litigation or dispute (including any reasonably foreseeable 
    litigation or dispute) involving the Federal Government, in any 
    trial, hearing, or proceeding before any court, administrative 
    tribunal, or agency, or in any part of an alternative dispute 
    resolution process, whether or not the expert is expected to 
    testify''.

        Subpart B--Planning, Solicitation, Evaluation, and Award

SEC. 1011. SOURCE SELECTION FACTORS.

    (a) Content of Solicitation.--Paragraph (2) of section 2305(a) of 
title 10, United States Code, is amended--
        (1) in subparagraph (A)(i)--
            (A) by striking out ``(and significant subfactors)'' and 
        inserting in lieu thereof ``and significant subfactors''; and
            (B) by striking out ``cost- or price-related factors, and 
        noncost- or nonprice-related factors'' and inserting in lieu 
        thereof ``cost-related or price-related factors and subfactors, 
        and noncost-related or nonprice-related factors and 
        subfactors'';
        (2) in subparagraph (A)(ii), by striking out ``(and 
    subfactors)'' and inserting ``and subfactors''; and
        (3) in subparagraph (B)(ii), by amending subclause (I) to read 
    as follows:
            ``(I) either a statement that the proposals are intended to 
        be evaluated with, and award made after, discussions with the 
        offerors, or a statement that the proposals are intended to be 
        evaluated, and 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''.
    (b) Evaluation Factors.--Such section is further amended by 
striking out paragraph (3) and inserting in lieu thereof the following:
    ``(3)(A) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, the head of an agency--
        ``(i) shall clearly establish 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);
        ``(ii) shall include cost or price to the Federal Government as 
    an evaluation factor that must be considered in the evaluation of 
    proposals; and
        ``(iii) shall 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.
    ``(B) The regulations implementing clause (iii) of subparagraph (A) 
may not define the terms `significantly more important' and 
`significantly less important' as specific numeric weights that would 
be applied uniformly to all solicitations or a class of solicitations.
    ``(4) Nothing in this subsection prohibits an agency from--
        ``(A) providing additional information in a solicitation, 
    including numeric weights for all evaluation factors and subfactors 
    on a case-by-case basis; or
        ``(B) 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.''.

SEC. 1012. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE 
              OPTIONS.

    Subsection (a) of section 2305 of title 10, United States Code, as 
amended by section 1011, is further amended by adding at the end the 
following new paragraph:
    ``(5) The head of an agency, in issuing a solicitation for a 
contract to be awarded using sealed bid procedures, may not include in 
such solicitation a clause providing for the evaluation of prices for 
options to purchase additional property or services under the contract 
unless the head of the agency has determined that there is a reasonable 
likelihood that the options will be exercised.''.

SEC. 1013. PROMPT NOTICE OF AWARD.

    (a) Sealed Bid Procedures.--Paragraph (3) of section 2305(b) of 
title 10, United States Code, is amended--
        (1) in the last sentence, by striking out ``transmitting 
    written notice'' and inserting in lieu thereof ``transmitting, in 
    writing or by electronic means, notice''; and
        (2) by adding at the end the following: ``Within three days 
    after the date of contract award, the head of the agency shall 
    notify, in writing or by electronic means, each bidder not awarded 
    the contract that the contract has been awarded.''.
    (b) Competitive Proposals Procedures.--Paragraph (4)(B) of such 
section is amended in the second sentence--
        (1) by striking out ``transmitting written notice'' and 
    inserting in lieu thereof ``transmitting, in writing or by 
    electronic means, notice''; and
        (2) by striking out ``shall promptly notify'' and inserting in 
    lieu thereof ``, within three days after the date of contract 
    award, shall notify, in writing or by electronic means,''.

SEC. 1014. POST-AWARD DEBRIEFINGS.

    Section 2305(b) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (5) as paragraph (6); and
        (2) by inserting after paragraph (4) the following new 
    paragraph (5):
    ``(5)(A) When a contract is awarded by the head of an agency on the 
basis of competitive proposals, an unsuccessful offeror, upon 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. The head of the agency shall debrief the 
offeror within, to the maximum extent practicable, five days after 
receipt of the request by the agency.
    ``(B) The debriefing shall include, at a minimum--
        ``(i) the agency's evaluation of the significant weak or 
    deficient factors in the offeror's offer;
        ``(ii) the overall evaluated cost and technical rating of the 
    offer of the contractor awarded the contract and the overall 
    evaluated cost and technical rating of the offer of the debriefed 
    offeror;
        ``(iii) the overall ranking of all offers;
        ``(iv) a summary of the rationale for the award;
        ``(v) 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
        ``(vi) 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 agency.
    ``(C) 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.
    ``(D) Each solicitation for competitive proposals shall include a 
statement that information described in subparagraph (B) may be 
disclosed in post-award debriefings.
    ``(E) If, within one year after the date of the contract award and 
as a result of a successful procurement protest, the 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 agency shall make 
available to all offerors--
        ``(i) the information provided in debriefings under this 
    paragraph regarding the offer of the contractor awarded the 
    contract; and
        ``(ii) the same information that would have been provided to 
    the original offerors.
    ``(F) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 1015. PROTEST FILE.

    Section 2305 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) Protest File.--(1) 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 agency, a protest is filed pursuant to the procedures in 
subchapter V of chapter 35 of title 31 and an actual or prospective 
offeror so 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) 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.
    ``(3) Regulations implementing this subsection shall be consistent 
with the regulations regarding the preparation and submission of an 
agency's protest file (the so-called `rule 4 file') for protests to the 
General Services Board of Contract Appeals under section 111 of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
759).''.

SEC. 1016. AGENCY ACTIONS ON PROTESTS.

    Section 2305 of title 10, United States Code, as amended by section 
1015, is further amended by adding at the end the following new 
subsection:
    ``(f) Agency Actions on Protests.--If, in connection with a 
protest, the head of an agency determines that a solicitation, proposed 
award, or award does not comply with the requirements of law or 
regulation, the head of the agency--
        ``(1) may take any action set out in subparagraphs (A) through 
    (F) of subsection (b)(1) of section 3554 of title 31; and
        ``(2) may pay costs described in paragraph (1) of section 
    3554(c) of title 31 within the limits referred to in paragraph (2) 
    of such section.''.

                     Subpart C--Kinds of Contracts

SEC. 1021. REPEAL OF REQUIREMENT FOR SECRETARIAL DETERMINATION 
              REGARDING USE OF COST TYPE OR INCENTIVE CONTRACT.

    Subsection (c) of section 2306 of title 10, United States Code, is 
repealed.

SEC. 1022. REVISION AND REORGANIZATION OF MULTIYEAR CON- TRACTING 
              AUTHORITY.

    (a) In General.--(1) Chapter 137 of title 10, United States Code, 
is amended by inserting after section 2306a the following new section:

``Sec. 2306b. Multiyear contracts

    ``(a) In General.--To the extent that funds are otherwise available 
for obligation, the head of an agency may enter into multiyear 
contracts for the purchase of property whenever the head of that agency 
finds--
        ``(1) that the use of such a contract will result in 
    substantial savings of the total anticipated costs of carrying out 
    the program through annual contracts;
        ``(2) that the minimum need for the property to be purchased is 
    expected to remain substantially unchanged during the contemplated 
    contract period in terms of production rate, procurement rate, and 
    total quantities;
        ``(3) that there is a reasonable expectation that throughout 
    the contemplated contract period the head of the agency will 
    request funding for the contract at the level required to avoid 
    contract cancellation;
        ``(4) that there is a stable design for the property to be 
    acquired and that the technical risks associated with such property 
    are not excessive;
        ``(5) that the estimates of both the cost of the contract and 
    the anticipated cost avoidance through the use of a multiyear 
    contract are realistic; and
        ``(6) in the case of a purchase by the Department of Defense, 
    that the use of such a contract will promote the national security 
    of the United States.
    ``(b) Regulations.--(1) Each official named in paragraph (2) shall 
prescribe acquisition regulations for the agency or agencies under the 
jurisdiction of such official to promote the use of multiyear 
contracting as authorized by subsection (a) in a manner that will allow 
the most efficient use of multiyear contracting.
    ``(2)(A) The Secretary of Defense shall prescribe the regulations 
applicable to the Department of Defense.
    ``(B) The Secretary of Transportation shall prescribe the 
regulations applicable to the Coast Guard, except that the regulations 
prescribed by the Secretary of Defense shall apply to the Coast Guard 
when it is operating as a service in the Navy.
    ``(C) The Administrator of the National Aeronautics and Space 
Administration shall prescribe the regulations applicable to the 
National Aeronautics and Space Administration.
    ``(c) Contract Cancellations.--The regulations may provide for 
cancellation provisions in multiyear contracts to the extent that such 
provisions are necessary and in the best interests of the United 
States. The cancellation provisions may include consideration of both 
recurring and nonrecurring costs of the contractor associated with the 
production of the items to be delivered under the contract.
    ``(d) Participation by Subcontractors, Vendors, and Suppliers.--In 
order to broaden the defense industrial base, the regulations shall 
provide that, to the extent practicable--
        ``(1) multiyear contracting under paragraph (1) shall be used 
    in such a manner as to seek, retain, and promote the use under such 
    contracts of companies that are subcontractors, vendors, or 
    suppliers; and
        ``(2) upon accrual of any payment or other benefit under such a 
    multiyear contract to any subcontractor, vendor, or supplier 
    company participating in such contract, such payment or benefit 
    shall be delivered to such company in the most expeditious manner 
    practicable.
    ``(e) Protection of Existing Authority.--The regulations shall 
provide that, to the extent practicable, the administration of this 
section, and of the regulations prescribed under this section, shall 
not be carried out in a manner to preclude or curtail the existing 
ability of an agency--
        ``(1) to provide for competition in the production of items to 
    be delivered under such a contract; or
        ``(2) to provide for termination of a prime contract the 
    performance of which is deficient with respect to cost, quality, or 
    schedule.
    ``(f) Cancellation or Termination for Insufficient Funding.--In the 
event funds are not made available for the continuation of a contract 
made under this section into a subsequent fiscal year, the contract 
shall be canceled or terminated. The costs of cancellation or 
termination may be paid from--
        ``(1) appropriations originally available for the performance 
    of the contract concerned;
        ``(2) appropriations currently available for procurement of the 
    type of property concerned, and not otherwise obligated; or
        ``(3) funds appropriated for those payments.
    ``(g) Contract Cancellation Ceilings Exceeding $100,000,000.--
Before any contract described in subsection (a) that contains a clause 
setting forth a cancellation ceiling in excess of $100,000,000 may be 
awarded, the head of the agency concerned shall give written 
notification of the proposed contract and of the proposed cancellation 
ceiling for that contract to the Committees on Armed Services and on 
Appropriations of the Senate and House of Representatives, and such 
contract may not then be awarded until the end of a period of 30 days 
beginning on the date of such notification.
    ``(h) Defense Acquisitions of Weapon Systems.--In the case of the 
Department of Defense, the authority under subsection (a) includes 
authority to enter into the following multiyear contracts in accordance 
with this section:
        ``(1) A multiyear contract for the purchase of a weapon system, 
    items and services associated with a weapon system, and logistics 
    support for a weapon system.
        ``(2) A multiyear contract for advance procurement of 
    components, parts, and materials necessary to the manufacture of a 
    weapon system, including a multiyear contract for such advance 
    procurement that is entered into in order to achieve economic-lot 
    purchases and more efficient production rates.
    ``(i) Defense Acquisitions Specifically Authorized by Law.--(1) A 
multiyear contract may not be entered into for any fiscal year under 
this section for a defense acquisition program that has been 
specifically authorized by law to be carried out using multiyear 
contract authority unless each of the following conditions is 
satisfied:
        ``(A) The Secretary of Defense certifies to Congress that the 
    current five-year defense program fully funds the support costs 
    associated with the multiyear program.
        ``(B) The proposed multiyear contract provides for production 
    at not less than minimum economic rates given the existing tooling 
    and facilities.
    ``(2) If for any fiscal year a multiyear contract to be entered 
into under this section is authorized by law for a particular 
procurement program and that authorization is subject to certain 
conditions established by law (including a condition as to cost savings 
to be achieved under the multiyear contract in comparison to specified 
other contracts) and if it appears (after negotiations with 
contractors) that such savings cannot be achieved, but that substantial 
savings could nevertheless be achieved through the use of a multiyear 
contract rather than specified other contracts, the President may 
submit to Congress a request for relief from the specified cost savings 
that must be achieved through multiyear contracting for that program. 
Any such request by the President shall include details about the 
request for a multiyear contract, including details about the 
negotiated contract terms and conditions.
    ``(j) Defense Contract Options for Varying Quantities.--The 
Secretary of Defense may instruct the Secretary of the military 
department concerned to incorporate into a proposed multiyear contract 
negotiated priced options for varying the quantities of end items to be 
procured over the period of the contract.
    ``(k) Inapplicability to Automatic Data Processing Contracts.--This 
section does not apply to contracts for the purchase of property to 
which section 111 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759) applies.
    ``(l) Multiyear Contract Defined.--For the purposes of this 
subsection, a multiyear contract is a contract for the purchase of 
property or services for more than one, but not more than five, program 
years. Such a contract may provide that performance under the contract 
during the second and subsequent years of the contract is contingent 
upon the appropriation of funds and (if it does so provide) may provide 
for a cancellation payment to be made to the contractor if such 
appropriations are not made.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2306a the 
following:
``2306b. Multiyear contracts.''.

    (b) Conforming Cross Reference.--Subsection (h) of section 2306 of 
title 10, United States Code, is amended to read as follows:
    ``(h) Multiyear contracting authority is provided in section 2306b 
of this title.''.

                        Subpart D--Miscellaneous

SEC. 1031. REPEAL OF REQUIREMENT FOR ANNUAL REPORT BY ADVOCATES FOR 
              COMPETITION.

    Subsection (c) of section 2318 of title 10, United States Code, is 
repealed.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1051. REFERENCES TO FEDERAL ACQUISITION REGULATION.

    Section 303 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253) is amended--
        (1) in subsection (a)(1)(A), by striking out ``modifications'' 
    and all that follows through ``of 1984'' and inserting in lieu 
    thereof ``Federal Acquisition Regulation''; and
        (2) in subsection (g)(1), by striking out ``regulations 
    modified'' and all that follows through ``of 1984,'' and inserting 
    in lieu thereof ``Federal Acquisition Regulation''.

SEC. 1052. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE SOURCES OF 
              SUPPLY.

    (a) Additional Justification for Establishing or Maintaining 
Alternative Sources.--Section 303(b)(1) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253(b)(1)) is amended--
        (1) by striking out ``or'' at the end of subparagraph (B);
        (2) by striking out the period at the end of subparagraph (C) 
    and inserting in lieu thereof a semicolon; and
        (3) by adding at the end the following new subparagraphs:
        ``(D) would ensure the continuous availability of a reliable 
    source of supply of such property or service;
        ``(E) would satisfy projected needs for such property or 
    service determined on the basis of a history of high demand for the 
    property or service; or
        ``(F) in the case of medical supplies, safety supplies, or 
    emergency supplies, would satisfy a critical need for such 
    supplies.''.
    (b) Prohibition on Use of Classes of Purchases or Contracts.--
Section 303(b) of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253(b)) is amended by adding at the end the 
following:
    ``(4) A determination under paragraph (1) may not be made for a 
class of purchases or contracts.''.

SEC. 1053. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF PROCEDURES 
              OTHER THAN FULL AND OPEN COMPETITION.

    Section 303(f)(1)(B)(i) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(i)) is amended by 
inserting before the semicolon at the end the following: ``or by an 
official referred to in clause (ii), (iii), or (iv)''.

SEC. 1054. TASK AND DELIVERY ORDER CONTRACTS.

    (a) Authority.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 
by inserting after section 303G the following new sections:

``SEC. 303H. TASK AND DELIVERY ORDER CONTRACTS: GENERAL AU- THORITY.

    ``(a) Authority To Award.--Subject to the requirements of this 
section, section 303J, and other applicable law, the head of an 
executive agency may enter into a task or delivery order contract (as 
defined in section 303K) for procurement of services or property.
    ``(b) Solicitation.--The solicitation for a task or delivery order 
contract shall include the following:
        ``(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, if any.
        ``(2) The maximum quantity or dollar value of the services or 
    property to be procured under the contract.
        ``(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 subsection (c) of 
section 303 applies to the contract and the use of such procedures is 
approved in accordance with subsection (f) of such section.
    ``(d) Single and Multiple Contract Awards.--(1) The head of an 
executive agency may exercise the authority provided in this section--
        ``(A) to award a single task or delivery order contract; or
        ``(B) if the solicitation states that the head of the executive 
    agency has the option to do so, to award separate task or delivery 
    order contracts for the same or similar services or property to two 
    or more sources.
    ``(2) No determination under section 303(b) is required for an 
award of multiple task or delivery order contracts under paragraph 
(1)(B).
    ``(3) The regulations implementing this subsection shall--
        ``(A) establish a preference for awarding, to the maximum 
    extent practicable, multiple task or delivery order contracts for 
    the same or similar services or property under the authority of 
    paragraph (1)(B); and
        ``(B) establish 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 303I, 
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, United States Code).
    ``(g) Relationship to Other Contracting Authority.--Nothing in this 
section may be construed to limit or expand any authority of the head 
of an executive agency or the Administrator of General Services to 
enter into schedule, multiple award, or task or delivery order 
contracts under any other provision of law.

``SEC. 303I. TASK ORDER CONTRACTS: ADVISORY AND ASSISTANCE SERVICES.

    ``(a) Authority To Award.--(1) Subject to the requirements of this 
section, section 303J, and other applicable law, the head of an 
executive agency may enter into a task order contract (as defined in 
section 303K) for procurement of advisory and assistance services.
    ``(2) The head of an executive agency may enter into a task order 
contract for advisory and assistance services only under the authority 
of this section.
    ``(b) Limitation on 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 five years unless a longer period is specifically 
authorized in a law that is applicable to such contract.
    ``(c) Content of Notice.--The notice required by section 18 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 416) 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.
    ``(d) Required Content of Solicitation and Contract.--(1) The 
solicitation shall include the information (regarding services) 
described in section 303H(b).
    ``(2) 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.
    ``(e) Multiple Awards.--(1) The head of an executive agency may, on 
the basis of one solicitation, award separate task order contracts 
under this section for the same or similar services to two or more 
sources if the solicitation states that the head of the executive 
agency has the option to do so.
    ``(2) If, in the case of a task order contract for advisory and 
assistance services to be entered into under the authority of this 
section, the contract period is to exceed three 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 
    offerers is capable of providing the services required at the level 
    of quality required.
    ``(3) 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.
    ``(f) Contract Modifications.--(1) 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) Unless use of procedures other than competitive procedures is 
authorized by an exception in subsection (c) of section 303 and 
approved in accordance with subsection (f) of such section, competitive 
procedures shall be used for making such a modification.
    ``(3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15 
U.S.C. 637(e)).
    ``(g) Contract Extensions.--(1) Notwithstanding the limitation on 
the contract period set forth in subsection (b) or in a solicitation or 
contract pursuant to subsection (e), 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 six months if the head of 
such 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 in order to ensure continuity 
    of the receipt of services pending the award of, and commencement 
    of performance under, the follow-on contract.
    ``(2) A task order contract may be extended under the authority of 
paragraph (1) only once and only in accordance with the limitations and 
requirements of this subsection.
    ``(h) 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 such contract determines that, under 
the contract, advisory and assistance services are necessarily incident 
to, and not a significant component of, the contract.
    ``(i) Advisory and Assistance Services Defined.--In this section, 
the term `advisory and assistance services' has the meaning given such 
term in section 1105(g) of title 31, United States Code.

``SEC. 303J. TASK AND DELIVERY ORDER CONTRACTS: ORDERS.

    ``(a) 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 such order under section 18 of the 
    Office of Federal Procurement Policy Act (41 U.S.C. 416) or section 
    8(e) of the Small Business Act (15 U.S.C. 637(e)).
        ``(2) Except as provided in subsection (b), a competition (or a 
    waiver of competition approved in accordance with section 303(f)) 
    that is separate from that used for entering into the contract.
    ``(b) Multiple Award Contracts.--When multiple contracts are 
awarded under section 303H(d)(1)(B) or 303I(e), all contractors awarded 
such 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 such opportunity 
    to all such contractors would result in unacceptable delays in 
    fulfilling that need;
        ``(2) only one such contractor 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 in order to satisfy a minimum guarantee.
    ``(c) 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.
    ``(d) Protests.--A protest is not authorized in connection with the 
issuance or proposed issuance of a task or delivery order except for a 
protest on the ground that the order increases the scope, period, or 
maximum value of the contract under which the order is issued.
    ``(e) Task and Delivery Order Ombudsman.--The head of each 
executive agency who awards multiple task or delivery order contracts 
pursuant to section 303H(d)(1)(B) or 303I(e) shall appoint or designate 
a task and delivery order ombudsman who shall be responsible for 
reviewing complaints from the contractors on such 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 (b). 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 competition advocate.
    ``(f) Applicability.--This section applies to task and delivery 
order contracts entered into under sections 303H and 303I.

``SEC. 303K. TASK AND DELIVERY ORDER CONTRACTS: DEFINITIONS.

    ``In sections 303H, 303I, and 303J:
        ``(1) The term `task order contract' means a contract for 
    services that does not procure or specify a firm quantity of 
    services (other than a minimum or maximum quantity) and that 
    provides for the issuance of orders for the performance of tasks 
    during the period of the contract.
        ``(2) The term `delivery order contract' means a contract for 
    property that does not procure or specify a firm quantity of 
    property (other than a minimum or maximum quantity) and that 
    provides for the issuance of orders for the delivery of property 
    during the period of the contract.''.
    (b) Provisions Not Affected.--Nothing in section 303H, 303I, 303J, 
or 303K of the Federal Property and Administrative Services Act of 
1949, as added by subsection (a), shall be construed as modifying or 
superseding, or as intended to impair or restrict, authorities or 
responsibilities under--
        (1) the Brooks Automatic Data Processing Act (section 111 of 
    the Federal Property and Administrative Services Act of 1949 (40 
    U.S.C. 759)); and
        (2) the Brooks Architect-Engineers Act (title IX of the Federal 
    Property and Administrative Services Act of 1949 (40 U.S.C. 541 et 
    seq.)).

SEC. 1055. ACQUISITION OF EXPERT SERVICES.

    (a) Exception to Requirement for Use of Competitive Procedures.--
Section 303(c)(3) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(c)) is amended--
        (1) by striking out ``or (B)'' and inserting in lieu thereof 
    ``(B)''; and
        (2) by inserting before the semicolon at the end the following: 
    ``, or (C) to procure the services of an expert for use, in any 
    litigation or dispute (including any reasonably foreseeable 
    litigation or dispute) involving the Federal Government, in any 
    trial, hearing, or proceeding before any court, administrative 
    tribunal, or agency, or in any part of an alternative dispute 
    resolution process, whether or not the expert is expected to 
    testify''.
    (b) Procurement Notice.--(1) Section 18(c)(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 416(c)) is amended--
        (A) by striking out ``or'' at the end of subparagraph (D);
        (B) by striking out the period at the end of subparagraph (E) 
    and inserting in lieu thereof ``; or''; and
        (C) by adding at the end the following:
        ``(F) 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 any 
    trial, hearing, or proceeding before any 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) Section 8(g)(1) of the Small Business Act (15 U.S.C. 637(c)) is 
amended--
        (A) by striking out ``or'' at the end of subparagraph (D);
        (B) by striking out the period at the end of subparagraph (E) 
    and inserting in lieu thereof ``; or''; and
        (C) by adding at the end the following:
        ``(F) the procurement is for the services of an expert for use 
    in any litigation or dispute (including preparation for any 
    foreseeable litigation or dispute) that involves or could involve 
    the Federal Government in any trial, hearing, or proceeding before 
    any court, administrative tribunal, or agency, or in any part of an 
    alternative dispute resolution process, whether or not the expert 
    is expected to testify.''.
    (c) Repeal of Amendments to Uncodified Title.--The following 
provisions of law are repealed:
        (1) Section 532 of Public Law 101-509 (104 Stat. 1470) and the 
    provision of law set out in quotes in that section.
        (2) Section 529 of Public Law 102-393 (106 Stat. 1761) and the 
    matters inserted and added by that section.

        Subpart B--Planning, Solicitation, Evaluation, and Award

SEC. 1061. SOLICITATION, EVALUATION, AND AWARD.

    (a) Content of Solicitation.--Subsection (b) of section 303A of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253a) is amended--
        (1) in paragraph (1)--
            (A) by amending subparagraph (A) to read as follows:
            ``(A) all significant factors and significant subfactors 
        which 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''; and
            (B) in subparagraph (B), by inserting ``and subfactors'' 
        after ``factors''; and
        (2) in paragraph (2)(B), by amending clause (i) to read as 
    follows:
            ``(i) either a statement that the proposals are intended to 
        be evaluated with, and award made after, discussions with the 
        offerors, or a statement that the proposals are intended to be 
        evaluated, and 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''.
    (b) Evaluation Factors.--Such section is further amended by adding 
at the end the following new subsections:
    ``(c)(1) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, an executive agency--
        ``(A) shall clearly establish 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) shall include cost or price to the Federal Government as 
    an evaluation factor that must be considered in the evaluation of 
    proposals; and
        ``(C) shall 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) The regulations implementing subparagraph (C) of paragraph 
(1) may not define the terms `significantly more important' and 
`significantly less important' as specific numeric weights that would 
be applied uniformly to all solicitations or a class of solicitations.
    ``(d) Nothing in this section prohibits 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.''.
    (c) Evaluation and Award.--Section 303B of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended--
        (1) in subsection (a), by inserting ``, and award a contract,'' 
    after ``competitive proposals'';
        (2) in subsection (c), by inserting ``in accordance with 
    subsection (a)'' in the second sentence after ``shall evaluate the 
    bids''; and
        (3) in subsection (d)--
            (A) by striking out paragraph (1) and inserting in lieu 
        thereof the following:
    ``(1) An executive agency shall evaluate competitive proposals in 
accordance with subsection (a) and may award a contract--
        ``(A) 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
        ``(B) 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 
    303A(b)(2)(B)(i), 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) by striking out paragraphs (2) and (3) and by 
        redesignating paragraph (4) as paragraph (2); and
            (C) in paragraph (2), as redesignated by subparagraph (B), 
        by inserting ``cost or'' before ``price'' in the first 
        sentence.

SEC. 1062. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE 
              OPTIONS.

    Section 303A of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253a), as amended by section 1061, is further 
amended by adding at the end the following new subsection:
    ``(e) An executive agency, in issuing a solicitation for a contract 
to be awarded using sealed bid procedures, may not include in such 
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.''.

SEC. 1063. PROMPT NOTICE OF AWARD.

    (a) Sealed Bid Procedures.--Subsection (c) of section 303B of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253b) is amended--
        (1) in the last sentence, by striking out ``transmitting 
    written notice'' and inserting in lieu thereof ``transmitting, in 
    writing or by electronic means, notice''; and
        (2) by adding at the end the following: ``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.''.
    (b) Competitive Proposals Procedures.--Paragraph (2) of subsection 
(d) of such section, as redesignated by section 1061(c)(3)(B), is 
amended in the second sentence--
        (1) by striking out ``transmitting written notice'' and 
    inserting in lieu thereof ``transmitting, in writing or by 
    electronic means, notice''; and
        (2) by striking out ``shall promptly notify'' and inserting in 
    lieu thereof ``, within 3 days after the date of contract award, 
    shall notify, in writing or by electronic means,''.

SEC. 1064. POST-AWARD DEBRIEFINGS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b) is amended--
        (1) by redesignating subsections (e) and (f) as subsections (f) 
    and (g), respectively; and
        (2) by inserting after subsection (d) the following new 
    subsection (e):
    ``(e)(1) When a contract is awarded by the head of an executive 
agency on the basis of competitive proposals, an unsuccessful offeror, 
upon 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. The executive agency shall 
debrief the offeror within, to the maximum extent practicable, 5 days 
after receipt of the request by the executive agency.
    ``(2) The debriefing shall include, at a minimum--
        ``(A) the executive agency's evaluation of the significant weak 
    or deficient factors in the offeror's offer;
        ``(B) the overall evaluated cost and technical rating of the 
    offer of the contractor awarded the contract and the overall 
    evaluated cost and technical rating of the offer of the debriefed 
    offeror;
        ``(C) the overall ranking of all offers;
        ``(D) a summary of the rationale for the award;
        ``(E) 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
        ``(F) 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.
    ``(3) 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, United States Code.
    ``(4) Each solicitation for competitive proposals shall include a 
statement that information described in paragraph (2) may be disclosed 
in post-award debriefings.
    ``(5) 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 such 
executive agency shall make available to all offerors--
        ``(A) the information provided in debriefings under this 
    subsection regarding the offer of the contractor awarded the 
    contract; and
        ``(B) the same information that would have been provided to the 
    original offerors.
    ``(6) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 1065. PROTEST FILE.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b), as amended by section 1064(1), is further 
amended by adding at the end the following:
    ``(h) Protest File.--(1) 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, United States 
Code, and an actual or prospective offeror so 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) Information exempt from disclosure under section 552 of title 
5, United States Code, may be redacted in a file established pursuant 
to paragraph (1) unless an applicable protective order provides 
otherwise.
    ``(3) Regulations implementing this subsection shall be consistent 
with the regulations regarding the preparation and submission of an 
agency's protest file (the so-called `rule 4 file') for protests to the 
General Services Board of Contract Appeals under section 111 of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
759).''.

SEC. 1066. AGENCY ACTIONS ON PROTESTS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b), as amended by section 1065, is further 
amended by adding at the end the following new subsection:
    ``(i) 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 such executive agency--
        ``(1) may take any action set out in subparagraphs (A) through 
    (F) of subsection (b)(1) of section 3554 of title 31, United States 
    Code; and
        ``(2) may pay costs described in paragraph (1) of section 
    3554(c) of such title within the limits referred to in paragraph 
    (2) of such section.''.

                     Subpart C--Kinds of Contracts

SEC. 1071. REPEAL OF AGENCY HEAD DETERMINATION REGARDING USE OF COST 
              TYPE OR INCENTIVE CONTRACT.

    Section 304(b) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254(b)) is amended by striking out the second 
sentence.

SEC. 1072. MULTIYEAR CONTRACTING AUTHORITY.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.) is amended by inserting after section 
304 the following new section:

``SEC. 304B. MULTIYEAR CONTRACTS.

    ``(a) Authority.--An executive agency may enter into a multiyear 
contract for the acquisition of property or services if--
        ``(1) funds are available and obligated for such 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 any necessary termination of such 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 United States by encouraging full and open competition or 
        promoting economy in administration, performance, and operation 
        of the agency's programs.
    ``(b) 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 such contract in any fiscal year covered by the 
contract. Amounts available for paying termination costs shall remain 
available for such purpose until the costs associated with termination 
of the contract are paid.
    ``(c) Cancellation Ceiling Notice.--Before any contract described 
in subsection (a) 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 the Congress, and 
such contract may not then be awarded until the end of a period of 30 
days beginning on the date of such notification.
    ``(d) Multiyear Contract Defined.--For the purposes of this 
section, a multiyear contract is a contract for the purchase of 
property or services for more than one, but not more than five, program 
years. Such a contract may provide that performance under the contract 
during the second and subsequent years of the contract is contingent 
upon the appropriation of funds and (if it does so provide) may provide 
for a cancellation payment to be made to the contractor if such 
appropriations are not made.
    ``(e) Rule of Construction.--Nothing in this section is intended to 
modify or affect any other provision of law that authorizes multiyear 
contracts.''.

SEC. 1073. SEVERABLE SERVICES CONTRACTS CROSSING FISCAL YEARS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1054, is further 
amended by inserting after section 303I the following new section:

``SEC. 303L. SEVERABLE SERVICES CONTRACTS FOR PERIODS CROSSING FISCAL 
              YEARS.

    ``(a) Authority.--The head of an executive agency may enter into a 
contract for 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 subsection (a).''.

SEC. 1074. ECONOMY ACT PURCHASES.

    (a) Regulations Required.--The Federal Acquisition Regulation shall 
be revised to include regulations governing the exercise of the 
authority under section 1535 of title 31, United States Code, for 
Federal agencies to purchase goods and services under contracts entered 
into or administered by other agencies.
    (b) Content of Regulations.--The regulations prescribed pursuant to 
subsection (a) shall--
        (1) require that each purchase described in subsection (a) be 
    approved in advance by a contracting officer of the ordering agency 
    with authority to contract for the goods or services to be 
    purchased or by another official in a position specifically 
    designated by regulation to approve such purchase;
        (2) provide that such a purchase of goods or services may be 
    made only if--
            (A) the purchase is appropriately made under a contract 
        that the agency filling the purchase order entered into, before 
        the purchase order, in order to meet the requirements of such 
        agency for the same or similar goods or services;
            (B) the agency filling the purchase order is better 
        qualified to enter into or administer the contract for such 
        goods or services by reason of capabilities or expertise that 
        is not available within the ordering agency; or
            (C) the agency or unit filling the order is specifically 
        authorized by law or regulations to purchase such goods or 
        services on behalf of other agencies;
        (3) prohibit any such purchase under a contract or other 
    agreement entered into or administered by an agency not covered by 
    the provisions of chapter 137 of title 10, United States Code, or 
    title III of the Federal Property and Administrative Services Act 
    of 1949 (41 U.S.C. 251 et seq.) and not covered by the Federal 
    Acquisition Regulation unless the purchase is approved in advance 
    by the senior procurement official responsible for purchasing by 
    the ordering agency; and
        (4) prohibit any payment to the agency filling a purchase order 
    of any fee that exceeds the actual cost or, if the actual cost is 
    not known, the estimated cost of entering into and administering 
    the contract or other agreement under which the order is filled.
    (c) Monitoring System Required.--The Administrator for Federal 
Procurement Policy shall ensure that, not later than one year after the 
date of the enactment of this Act, systems for collecting and 
evaluating procurement data are capable of collecting and evaluating 
appropriate data on procurements conducted under the regulations 
prescribed pursuant to subsection (a).
    (d) Termination.--This section shall cease to be effective one year 
after the date on which final regulations prescribed pursuant to 
subsection (a) take effect.

                    PART III--ACQUISITIONS GENERALLY

SEC. 1091. POLICY REGARDING CONSIDERATION OF CONTRACTOR PAST 
              PERFORMANCE.

    (a) Policy.--Section 2 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 401) is amended--
        (1) by striking out ``and'' at the end of paragraph (12);
        (2) by striking out the period at the end of paragraph (13) and 
    inserting in lieu thereof ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(14) establishing policies and procedures that encourage the 
    consideration of the offerors' past performance in the selection of 
    contractors.''.
    (b) Guidance Required.--(1) Congress makes the following findings:
        (A) Past contract performance of an offeror is one of the 
    relevant factors that a contracting official of an executive agency 
    should consider in awarding a contract.
        (B) It is appropriate for a contracting official to consider 
    past contract performance of an offeror as an indicator of the 
    likelihood that the offeror will successfully perform a contract to 
    be awarded by that official.
    (2) Section 6 of the Office of Federal Procurement Policy Act (41 
U.S.C. 405) is amended by adding at the end the following:
    ``(j)(1) The Administrator shall prescribe for executive agencies 
guidance regarding consideration of the past contract performance of 
offerors in awarding contracts. The guidance shall include--
        ``(A) 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;
        ``(B) 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;
        ``(C) policies for ensuring that--
            ``(i) offerors are afforded an opportunity to submit 
        relevant information on past contract performance, including 
        performance under contracts entered into by the executive 
        agency concerned, contracts entered into by other departments 
        and agencies of the Federal Government, contracts entered into 
        by agencies of State and local governments, and contracts 
        entered into by commercial customers; and
            ``(ii) such information submitted by offerors is 
        considered; and
        ``(D) the period for which information on past performance of 
    offerors may be maintained and considered.
    ``(2) In the case of an offeror with respect to which there is no 
information on past contract performance or with respect to which 
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. 1092. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON COMPETITION.

    Section 23 of the Office of Federal Procurement Policy Act (41 
U.S.C. 419) is repealed.

SEC. 1093. DISCOURAGEMENT OF NONSTANDARD CONTRACT CLAUSES.

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

``SEC. 29. NONSTANDARD CONTRACT CLAUSES.

    ``The Federal Acquisition Regulatory Council shall promulgate 
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.''.

                   Subtitle B--Truth in Negotiations

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 1201. STABILIZATION OF DOLLAR THRESHOLD OF APPLICABILITY.

    (a) Repeal of Reversion to Lower Threshold.--Paragraph (1)(A) of 
section 2306a(a) of title 10, United States Code, is amended--
        (1) in clause (i), by striking out ``and before January 1, 
    1996,''; and
        (2) in clause (ii), by striking out ``or after December 31, 
    1995,''.
    (b) Adjustments for Changes in Dollar Values.--Section 2306a(a) of 
such title is amended by adding at the end the following new 
subparagraph:
    ``(7) Effective on October 1 of each year that is divisible by 5, 
each amount set forth in paragraph (1) 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.''.
    (c) Repeal.--Paragraph (6) of section 2306a(a) of such title is 
amended--
        (1) by striking out ``(A)''; and
        (2) by striking out subparagraph (B).

SEC. 1202. EXCEPTIONS TO COST OR PRICING DATA REQUIREMENTS.

    (a) Exceptions Stated.--Subsection (b) of section 2306a of title 
10, United States Code, is amended to read as follows:
    ``(b) Exceptions.--
        ``(1) In general.--Submission of cost or pricing data shall not 
    be required under subsection (a) in the case of a contract, a 
    subcontract, or modification of a contract or subcontract--
            ``(A) for which the price agreed upon is based on--
                ``(i) adequate price competition;
                ``(ii) established catalog or market prices of 
            commercial items that are sold in substantial quantities to 
            the general public; or
                ``(iii) prices set by law or regulation; or
            ``(B) in an exceptional case when the head of the procuring 
        activity, without delegation, determines that the requirements 
        of this section may be waived and justifies in writing the 
        reasons for such determination.
        ``(2) 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 
    prohibition on the submission of cost or pricing data in paragraph 
    (1)(A), submission of cost or pricing data shall not be required 
    under subsection (a) if--
            ``(A) the contract or subcontract being modified is a 
        contract or subcontract for which submission of cost or pricing 
        data may not be required by reason of paragraph (1)(A); and
            ``(B) the modification would not change the contract or 
        subcontract, as the case may be, 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.''.
        ``(3) FAR standards.-- The Federal Acquisition Regulation shall 
    provide clear standards for determining whether the exceptions 
    provided in paragraph (1)(A) apply. In the case of the exception 
    provided in paragraph (1)(A)(i), the regulations shall specify the 
    criteria to be used to determine whether adequate price competition 
    exists. In the case of the exception provided in paragraph 
    (1)(A)(ii), the regulations shall provide that the exception 
    applies to items that are sold in substantial quantities to the 
    general public, without regard to the quantity of items that may be 
    sold to the Federal Government.''.
    (b) Conforming Amendment to Reference.--Subsection (a)(5) of such 
section is amended by striking out ``subsection (b)(2)'' and inserting 
in lieu thereof ``subsection (b)(1)(B)''.

SEC. 1203. RESTRICTIONS ON ADDITIONAL AUTHORITY TO REQUIRE COST OR 
              PRICING DATA OR OTHER INFORMATION.

    Subsection (c) of section 2306a of title 10, United States Code, is 
amended to read as follows:
    ``(c) Restrictions on Additional Authority to Require Cost or 
Pricing Data or Other Information.--
        ``(1) Authority to require cost or pricing data on below-
    threshold contracts.--(A) Subject to subparagraph (B), when cost or 
    pricing data are not required to be submitted by subsection (a) for 
    a contract, subcontract, or modification of a contract or 
    subcontract, such 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 such 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 such data to be submitted under this subsection, 
    the head of the procuring activity shall justify in writing the 
    reason for such requirement.
        ``(B) The head of the procuring activity may not require 
    certified cost or pricing data to be submitted under this paragraph 
    for any contract or subcontract, or modification of a contract or 
    subcontract, covered by the exceptions in subsection (b)(1)(A).
        ``(C) The head of a procuring activity may not delegate 
    functions under this paragraph.
        ``(2) Authority to require information other than certified 
    cost or pricing data.--When certified cost or pricing data are not 
    required to be submitted under this section for a contract, 
    subcontract, or modification of a contract or subcontract, the head 
    of the procuring activity may 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.''.

SEC. 1204. ADDITIONAL SPECIAL RULES FOR COMMERCIAL ITEMS.

    Section 2306a of title 10, United States Code, is amended--
        (1) by redesignating subsections (d), (e), (f), and (g) as 
    subsections (e), (f), (g), and (i), respectively; and
        (2) by inserting after subsection (c) the following new 
    subsection (d):
    ``(d) Additional Exception Provisions Regarding Commercial Items.--
        ``(1) Procurements based on adequate price competition.--To the 
    maximum extent practicable, the head of an agency shall conduct 
    procurements of commercial items on a competitive basis. In any 
    procurement of a commercial item conducted on a competitive basis 
    and based upon adequate price competition, the head of the agency 
    conducting the procurement shall not require cost or pricing data 
    to be submitted under subsection (a) for the contract, subcontract, 
    or modification of the contract or subcontract under the 
    procurement. If additional information is necessary to determine 
    the reasonableness of the price of the contract, subcontract, or 
    modification, the head of the agency shall, to the maximum extent 
    practicable, obtain the additional information from sources other 
    than the offeror.
        ``(2) Procurements not based on adequate price competition.--
    (A)(i) In any case in which it is not practicable to conduct a 
    procurement of a commercial item covered by subsection (a) on a 
    competitive basis, and the procurement is not covered by an 
    exception in subsection (b), the contracting officer shall seek to 
    obtain from the offeror or contractor information described in 
    clause (ii). When such information is not available from that 
    source, the contracting officer shall seek to obtain such 
    information from another source or sources.
        ``(ii) The information referred in clause (i) is information on 
    prices at which the same item or similar items have been sold in 
    the commercial market that is adequate for evaluating, through 
    price analysis, the reasonableness of the price of the contract, 
    subcontract, or modification of the contract or subcontract under 
    the procurement.
        ``(B) The contracting officer shall exempt a contract, 
    subcontract, or modification of a contract or subcontract under the 
    procurement from the requirements of subsection (a) if the 
    contracting officer obtains the information described in 
    subparagraph (A)(ii) in accordance with standards and procedures 
    set forth in the Federal Acquisition Regulation.
        ``(C) A contracting officer may require submission of cost or 
    pricing data under subsection (a) only if the contracting officer 
    makes a written determination that the agency is unable to obtain 
    the information described in subparagraph (A)(ii).
        ``(3) Authority to audit.--(A) In accordance with procedures 
    prescribed in the Federal Acquisition Regulation, the head of an 
    agency is authorized to examine all information provided by an 
    offeror, contractor, or subcontractor pursuant to paragraph (2)(A) 
    and all books and records of such offeror, contractor, or 
    subcontractor that directly relate to such information in order to 
    determine whether the agency is receiving accurate information 
    required under this subsection.
        ``(B) The right under subparagraph (A) shall expire 2 years 
    after the date of award of the contract, or 2 years after the date 
    of the modification of the contract, with respect to which the 
    information was provided.
        ``(4) Limitations on requests for data.--The Federal 
    Acquisition Regulation shall include reasonable limitations on 
    requests under this section for sales data relating to commercial 
    items.
        ``(5) Form of information.--In requesting information from an 
    offeror under this subsection, a contracting officer shall, to the 
    maximum extent practicable, limit the scope of the request to 
    include only information that is in the form regularly maintained 
    by the offeror in commercial operations.
        ``(6) Confidentiality.--Any information received under this 
    subsection that is exempt from disclosure under section 552(b) of 
    title 5 shall not be disclosed by the Federal Government.''.

SEC. 1205. RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR RECORDS.

    Section 2306a of title 10, United States Code, is amended by 
striking out subsection (g), as redesignated by section 1204(1), and 
inserting in lieu thereof the following:
    ``(g) Right of United States 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 section, the head 
of an agency shall have the authority provided by section 2313(a)(2) of 
this title.''.

SEC. 1206. REQUIRED REGULATIONS.

    Section 2306a of title 10, United States Code, as amended by 
sections 1204 and 1205, is further amended by inserting after 
subsection (g) the following new subsection:
    ``(h) Required Regulations.--The Federal Acquisition Regulation 
shall contain provisions concerning the types of information that 
offerors must submit for a contracting officer to consider in 
determining whether the price of a procurement to the Government is 
fair and reasonable when certified cost or pricing data are not 
required to be submitted under this section because the price of the 
procurement to the United States is not expected to exceed the 
applicable threshold amount set forth in subsection (a) (as adjusted 
pursuant to paragraph (7) of such subsection). Such information, at a 
minimum, shall include 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 of the proposed 
contract or subcontract for the procurement.''.

SEC. 1207. CONSISTENCY OF TIME REFERENCES.

    Section 2306a of title 10, United States Code, as amended by 
section 1204(1), is further amended in subparagraphs (A)(ii) and 
(B)(ii) of subsection (e)(4), by inserting ``or, if applicable 
consistent with paragraph (1)(B), another date agreed upon between the 
parties,'' after ``(or price of the modification)''.

SEC. 1208. EXCEPTION FOR TRANSFERS BETWEEN DIVISIONS, SUBSIDIARIES, AND 
              AFFILIATES.

    Subsection (i) of section 2306a of title 10, United States Code, as 
redesignated by section 1204(1), is amended to read as follows:
    ``(i) Definitions.--In this section:
        ``(1) 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 subsection (e)(1)(B), another date 
    agreed upon between the parties, a prudent buyer or seller would 
    reasonably expect to affect price negotiations significantly. Such 
    term does not include information that is judgmental, but does 
    include the factual information from which a judgment was derived.
        ``(2) Subcontract.--The term `subcontract' includes a transfer 
    of commercial items between divisions, subsidiaries, or affiliates 
    of a contractor or a subcontractor.
        ``(3) Commercial item.--The term `commercial item' has the 
    meaning provided such term in section 4(12) of the Office of 
    Federal Procurement Policy Act.''.

SEC. 1209. COVERAGE OF COAST GUARD AND NASA FOR INTEREST AND PAYMENTS 
              ON CERTAIN OVERPAYMENTS.

    Paragraph (1) of subsection (f) of section 2306a of title 10, 
United States Code, as redesignated by section 1204(1), is amended by 
striking out ``with the Department of Defense'' in the matter preceding 
subparagraph (A).

SEC. 1210. REPEAL OF SUPERSEDED PROVISION.

    Subsections (b) and (c) of section 803 of Public Law 101-510 (10 
U.S.C. 2306a note) are repealed.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 1251. REVISION OF CIVILIAN AGENCY PROVISIONS TO ENSURE UNIFORM 
              TREATMENT OF COST OR PRICING DATA.

    (a) Revision.--Title III of the Federal Property and Administrative 
Services Act of 1949 is amended--
        (1) in section 304 (41 U.S.C. 254), by striking out subsection 
    (d); and
        (2) by inserting before section 304B, as added by section 1072, 
    the following new section:

``SEC. 304A. COST OR PRICING DATA: TRUTH IN NEGOTIATIONS.

    ``(a) Required Cost or Pricing Data and Certification.--(1) The 
head of an executive agency shall require offerors, contractors, and 
subcontractors to make cost or pricing data available as follows:
        ``(A) An offeror for a prime contract under this title 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--
            ``(i) in the case of a prime contract entered into after 
        the date of the enactment of the Federal Acquisition 
        Streamlining Act of 1994, the price of the contract to the 
        United States is expected to exceed $500,000; and
            ``(ii) in the case of a prime contract entered into on or 
        before the date of the enactment of the Federal Acquisition 
        Streamlining Act of 1994, the price of the contract to the 
        United States is expected to exceed $100,000.
        ``(B) The contractor for a prime contract under this title 
    shall be required to submit cost or pricing data before the pricing 
    of a change or modification to the contract if--
            ``(i) in the case of a change or modification made to a 
        prime contract referred to in subparagraph (A)(i), the price 
        adjustment is expected to exceed $500,000;
            ``(ii) in the case of a change or modification made to a 
        prime contract that was entered into on or before the date of 
        the enactment of the Federal Acquisition Streamlining Act of 
        1994, and that has been modified pursuant to paragraph (6), the 
        price adjustment is expected to exceed $500,000; and
            ``(iii) in the case of a change or modification not covered 
        by clause (i) or (ii), the price adjustment is expected to 
        exceed $100,000.
        ``(C) An offeror for a subcontract (at any tier) of a contract 
    under this title 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 section and--
            ``(i) in the case of a subcontract under a prime contract 
        referred to in subparagraph (A)(i), the price of the 
        subcontract is expected to exceed $500,000;
            ``(ii) in the case of a subcontract entered into under a 
        prime contract that was entered into on or before the date of 
        the enactment of the Federal Acquisition Streamlining Act of 
        1994, and that has been modified pursuant to paragraph (6), the 
        price of the subcontract is expected to exceed $500,000; and
            ``(iii) in the case of a subcontract not covered by clause 
        (i) or (ii), the price of the subcontract is expected to exceed 
        $100,000.
        ``(D) The subcontractor for a subcontract covered by 
    subparagraph (C) shall be required to submit cost or pricing data 
    before the pricing of a change or modification to the subcontract 
    if--
            ``(i) in the case of a change or modification to a 
        subcontract referred to in subparagraph (C)(i) or (C)(ii), the 
        price adjustment is expected to exceed $500,000; and
            ``(ii) in the case of a change or modification to a 
        subcontract referred to in subparagraph (C)(iii), the price 
        adjustment is expected to exceed $100,000.
    ``(2) A person required, as an offeror, contractor, or 
subcontractor, to submit cost or pricing data under paragraph (1) (or 
required by the head of the procuring activity concerned to submit such 
data under subsection (c)) 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.
    ``(3) Cost or pricing data required to be submitted under paragraph 
(1) (or under subsection (c)), and a certification required to be 
submitted under paragraph (2), shall be submitted--
        ``(A) 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 to a designated representative of the contracting 
    officer); or
        ``(B) in the case of a submission by a subcontractor (or an 
    offeror for a subcontract), to the prime contractor.
    ``(4) Except as provided under subsection (b), this section applies 
to contracts entered into by the head of an executive agency on behalf 
of a foreign government.
    ``(5) For purposes of paragraph (1)(C), a contractor or 
subcontractor granted a waiver under subsection (b)(1)(B) shall be 
considered as having been required to make available cost or pricing 
data under this section.
    ``(6) Upon the request of a contractor that was required to submit 
cost or pricing data under paragraph (1) in connection with a prime 
contract entered into on or before the date of the enactment of the 
Federal Acquisition Streamlining Act of 1994, the head of the executive 
agency that entered into such contract shall modify the contract to 
reflect subparagraphs (B)(ii) and (C)(ii) of paragraph (1). All such 
modifications shall be made without requiring consideration.
    ``(7) Effective on October 1 of each year that is divisible by 5, 
each amount set forth in paragraph (1) 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.
    ``(b) Exceptions.--
        ``(1) In general.--Submission of cost or pricing data shall not 
    be required under subsection (a) in the case of a contract, a 
    subcontract, or a modification of a contract or subcontract--
            ``(A) for which the price agreed upon is based on--
                ``(i) adequate price competition;
                ``(ii) established catalog or market prices of 
            commercial items that are sold in substantial quantities to 
            the general public; or
                ``(iii) prices set by law or regulation; or
            ``(B) in an exceptional case when the head of the procuring 
        activity, without delegation, determines that the requirements 
        of this section may be waived and justifies in writing the 
        reasons for such determination.
        ``(2) 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 
    prohibition on the submission of cost or pricing data in paragraph 
    (1)(A), submission of cost or pricing data shall not be required 
    under subsection (a) if--
            ``(A) the contract or subcontract being modified is a 
        contract or subcontract for which submission of cost or pricing 
        data may not be required by reason of paragraph (1)(A); and
            ``(B) the modification would not change the contract or 
        subcontract, as the case may be, 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.
        ``(3) FAR standards.--The Federal Acquisition Regulation shall 
    provide clear standards for determining whether the exceptions 
    provided in paragraph (1)(A) apply. In the case of the exception 
    provided in paragraph (1)(A)(i), the regulations shall specify the 
    criteria to be used to determine whether adequate price competition 
    exists. In the case of the exception provided in paragraph 
    (1)(A)(ii), the regulations shall provide that the exception 
    applies to items that are sold in substantial quantities to the 
    general public, without regard to the quantity of items that may be 
    sold to the Federal Government.
    ``(c) Restrictions on Additional Authority To Require Cost or 
Pricing Data or Other Information.--
        ``(1) Authority To Require Cost or Pricing Data on Below-
    Threshold Contracts.--(A) Subject to subparagraph (B), when cost or 
    pricing data are not required to be submitted by subsection (a) for 
    a contract, subcontract, or modification of a contract or 
    subcontract, such 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 such 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 such data to be submitted under this subsection, 
    the head of the procuring activity shall justify in writing the 
    reason for such requirement.
        ``(B) The head of the procuring activity may not require 
    certified cost or pricing data to be submitted under this paragraph 
    for any contract or subcontract, or modification of a contract or 
    subcontract, covered by the exceptions in subsection (b)(1)(A).
        ``(C) The head of a procuring activity may not delegate the 
    functions under this paragraph.
        ``(2) Authority to require information other than certified 
    cost or pricing data.--When certified cost or pricing data are not 
    required to be submitted under this section for a contract, 
    subcontract, or modification of a contract or subcontract, the head 
    of the procuring activity may 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.
    ``(d) Additional Exception Provisions Regarding Commercial Items.--
        ``(1) Procurements based on adequate price competition.--To the 
    maximum extent practicable, the head of an executive agency shall 
    conduct procurements of commercial items on a competitive basis. In 
    any procurement of a commercial item conducted on a competitive 
    basis and based upon adequate price competition, the head of the 
    executive agency conducting the procurement shall not require cost 
    or pricing data to be submitted under subsection (a) for the 
    contract, subcontract, or modification of the contract or 
    subcontract under the procurement. If additional information is 
    necessary to determine the reasonableness of the price of the 
    contract, subcontract, or modification of the contract or 
    subcontract, the head of the executive agency shall, to the maximum 
    extent practicable, obtain the additional information from sources 
    other than the offeror.
        ``(2) Procurements not based on adequate price competition.--
    (A)(i) In any case in which it is not practicable to conduct a 
    procurement of a commercial item covered by subsection (a) on a 
    competitive basis, and the procurement is not covered by an 
    exception in subsection (b), the contracting officer shall seek to 
    obtain from the offeror or contractor information described in 
    clause (ii). When such information is not available from that 
    source, the contracting officer shall seek to obtain such 
    information from another source or sources.
        ``(ii) The information referred in clause (i) is information on 
    prices at which the same item or similar items have been sold in 
    the commercial market that is adequate for evaluating, through 
    price analysis, the reasonableness of the price of the contract, 
    subcontract, or modification of the contract or subcontract under 
    the procurement.
        ``(B) The contracting officer shall exempt a contract, 
    subcontract, or modification of a contract or subcontract under the 
    procurement from the requirements of subsection (a) if the 
    contracting officer obtains the information described in 
    subparagraph (A)(ii) in accordance with standards and procedures 
    set forth in the Federal Acquisition Regulation.
        ``(C) A contracting officer may require submission of cost or 
    pricing data under subsection (a) only if the contracting officer 
    makes a written determination that the agency is unable to obtain 
    the information described in subparagraph (A)(ii).
        ``(3) Authority to audit.--(A) In accordance with procedures 
    prescribed in the Federal Acquisition Regulation, the head of an 
    executive agency is authorized to examine all information provided 
    by an offeror, contractor, or subcontractor pursuant to paragraph 
    (2)(A) and all books and records of such offeror, contractor, or 
    subcontractor that directly relate to such information in order to 
    determine whether the agency is receiving accurate information 
    required under this section.
        ``(B) The right under subparagraph (A) shall expire 2 years 
    after the date of award of the contract, or 2 years after the date 
    of the modification of the contract, with respect to which the 
    information was provided.
        ``(4) Limitations on requests for data.--The Federal 
    Acquisition Regulation shall include reasonable limitations on 
    requests under this subsection for sales data relating to 
    commercial items.
        ``(5) Form of information.--In requesting information from an 
    offeror under this subsection, a contracting officer shall, to the 
    maximum extent practicable, limit the scope of the request to 
    include only information that is in the form regularly maintained 
    by the offeror in commercial operations.
        ``(6) Confidentiality.--Any information received under this 
    subsection that is exempt from disclosure under section 552(b) of 
    title 5 shall not be disclosed by the Federal Government.
    ``(e) Price Reductions for Defective Cost or Pricing Data.--(1)(A) 
A prime contract (or change or modification to a prime contract) under 
which a certificate under subsection (a)(2) is required shall contain a 
provision that the price of the contract to the United States, 
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 such price was increased because the contractor (or any 
subcontractor required to make available such a certificate) submitted 
defective cost or pricing data.
    ``(B) For the purposes of this section, defective cost or pricing 
data are cost or pricing data which, as of the date of agreement on the 
price of the contract (or another date agreed upon between the 
parties), were inaccurate, incomplete, or noncurrent. If for purposes 
of the preceding sentence the parties agree upon a date other than the 
date of agreement on the price of the contract, the date agreed upon by 
the parties shall be as close to the date of agreement on the price of 
the contract as is practicable.
    ``(2) In determining for purposes of a contract price adjustment 
under a contract provision required by paragraph (1) whether, and to 
what extent, a contract price was increased because the contractor (or 
a subcontractor) submitted defective cost or pricing data, it shall be 
a defense that the United States did not rely on the defective data 
submitted by the contractor or subcontractor.
    ``(3) It is not a defense to an adjustment of the price of a 
contract under a contract provision required by paragraph (1) that--
        ``(A) 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--
            ``(i) was the sole source of the property or services 
        procured; or
            ``(ii) otherwise was in a superior bargaining position with 
        respect to the property or services procured;
        ``(B) the contracting officer should have known that the cost 
    or pricing data in issue were defective even though the contractor 
    or subcontractor took no affirmative action to bring the character 
    of the data to the attention of the contracting officer;
        ``(C) the contract was based on an agreement between the 
    contractor and the United States about the total cost of the 
    contract and there was no agreement about the cost of each item 
    procured under such contract; or
        ``(D) the prime contractor or subcontractor did not submit a 
    certification of cost or pricing data relating to the contract as 
    required under subsection (a)(2).
    ``(4)(A) A contractor shall be allowed to offset an amount against 
the amount of a contract price adjustment under a contract provision 
required by paragraph (1) if--
        ``(i) 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
        ``(ii) 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 
    paragraph (1)(B), another date agreed upon between the parties, and 
    that the data were not submitted as specified in subsection (a)(3) 
    before such date.
    ``(B) A contractor shall not be allowed to offset an amount 
otherwise authorized to be offset under subparagraph (A) if--
        ``(i) the certification under subsection (a)(2) with respect to 
    the cost or pricing data involved was known to be false when 
    signed; or
        ``(ii) the United States proves that, had the cost or pricing 
    data referred to in subparagraph (A)(ii) been submitted to the 
    United States before the date of agreement on the price of the 
    contract (or price of the modification) or, if applicable under 
    paragraph (1)(B), another date agreed upon between the parties, the 
    submission of such cost or pricing data would not have resulted in 
    an increase in that price in the amount to be offset.
    ``(f) Interest and Penalties for Certain Overpayments.--(1) If the 
United States makes an overpayment to a contractor under a contract 
with an executive agency subject to this section and the overpayment 
was due to the submission by the contractor of defective cost or 
pricing data, the contractor shall be liable to the United States--
        ``(A) for interest on the amount of such overpayment, to be 
    computed--
            ``(i) 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 such overpayment to the United 
        States; and
            ``(ii) at the current rate prescribed by the Secretary of 
        the Treasury under section 6621 of the Internal Revenue Code of 
        1986; and
        ``(B) if the submission of such defective data was a knowing 
    submission, for an additional amount equal to the amount of the 
    overpayment.
    ``(2) Any liability under this subsection of a contractor that 
submits cost or pricing data but refuses to submit the certification 
required by subsection (a)(2) with respect to the cost or pricing data 
shall not be affected by the refusal to submit such certification.
    ``(g) Right of United States 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 section, an 
executive agency shall have the authority provided by section 
304C(a)(2).
    ``(h) Required Regulations.--The Federal Acquisition Regulation 
shall include regulations concerning the types of information that 
offerors must submit for a contracting officer to consider in 
determining whether the price of a procurement to the Government is 
fair and reasonable when certified cost or pricing data are not 
required to be submitted under this section because the price of the 
procurement to the United States is not expected to exceed the 
applicable threshold amount set forth in subsection (a) (as adjusted 
pursuant to paragraph (7) of such subsection). Such information, at a 
minimum, shall include 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 of a proposed 
contract or subcontract for the procurement.
    ``(i) Definitions.--In this section:
        ``(1) 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 subsection (e)(1)(B), another date 
    agreed upon between the parties, a prudent buyer or seller would 
    reasonably expect to affect price negotiations significantly. Such 
    term does not include information that is judgmental, but does 
    include the factual information from which a judgment was derived.
        ``(2) Subcontract.--The term `subcontract' includes a transfer 
    of commercial items between divisions, subsidiaries, or affiliates 
    of a contractor or a subcontractor.
        ``(3) Commercial item.--The term `commercial item' has the 
    meaning provided such term by section 4(12) of the Office of 
    Federal Procurement Policy Act.''.
    (b) Applicability.--Subsection (a) of section 304A of the Office of 
Federal Procurement Policy Act, as added by subsection (a), shall apply 
according to the provisions thereof on and after the date of the 
enactment of this Act, notwithstanding section 10001(b).

SEC. 1252. REPEAL OF OBSOLETE PROVISION.

    Section 303E of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253e) is repealed.

                  Subtitle C--Research and Development

SEC. 1301. RESEARCH PROJECTS.

    (a) General Authority.--Section 2358 of title 10, United States 
Code, is amended to read as follows:

``Sec. 2358. Research and development projects

    ``(a) Authority.--The Secretary of Defense or the Secretary of a 
military department may engage in basic research, applied research, 
advanced research, and development projects that--
        ``(1) are necessary to the responsibilities of such Secretary's 
    department in the field of research and development; and
        ``(2) either--
            ``(A) relate to weapon systems and other military needs; or
            ``(B) are of potential interest to the Department of 
        Defense.
    ``(b) Authorized Means.--The Secretary of Defense or the Secretary 
of a military department may perform research and development 
projects--
        ``(1) by contract, cooperative agreement, or grant, in 
    accordance with chapter 63 of title 31;
        ``(2) through one or more military departments;
        ``(3) by using employees and consultants of the Department of 
    Defense; or
        ``(4) by mutual agreement with the head of any other department 
    or agency of the Federal Government.
    ``(c) Requirement of Potential Department of Defense Interest.--
Funds appropriated to the Department of Defense or to a military 
department may not be used to finance any research project or study 
unless the project or study is, in the opinion of the Secretary of 
Defense or the Secretary of that military department, respectively, of 
potential interest to the Department of Defense or to such military 
department, respectively.
    ``(d) Additional Provisions Applicable to Cooperative Agreements.--
Additional authorities, conditions, and requirements relating to 
certain cooperative agreements authorized by this section are provided 
in section 2371 of this title.''.
    (b) Transactions Other Than Contracts and Grants.--Section 2371 of 
such title is amended to read as follows:

``Sec. 2371. Research projects: transactions other than contracts and 
            grants

    ``(a) Additional Forms of Transactions Authorized.--The Secretary 
of Defense and the Secretary of each military department may enter into 
transactions (other than contracts, cooperative agreements, and grants) 
under the authority of this subsection in carrying out basic, applied, 
and advanced research projects. The authority under this subsection is 
in addition to the authority provided in section 2358 of this title to 
use contracts, cooperative agreements, and grants in carrying out such 
projects.
    ``(b) Exercise of Authority by Secretary of Defense.--In any 
exercise of the authority in subsection (a), the Secretary of Defense 
shall act through the Advanced Research Projects Agency or any other 
element of the Department of Defense that the Secretary may designate.
    ``(c) Advance Payments.--The authority provided under subsection 
(a) may be exercised without regard to section 3324 of title 31.
    ``(d) Recovery of Funds.--(1) A cooperative agreement for 
performance of basic, applied, or advanced research authorized by 
section 2358 of this title and a transaction authorized by subsection 
(a) may include a clause that requires a person or other entity to make 
payments to the Department of Defense or any other department or agency 
of the Federal Government as a condition for receiving support under 
the agreement or other transaction.
    ``(2) The amount of any payment received by the Federal Government 
pursuant to a requirement imposed under paragraph (1) may be credited, 
to the extent authorized by the Secretary of Defense, to the 
appropriate account established under subsection (f). Amounts so 
credited shall be merged with other funds in the account and shall be 
available for the same purposes and the same period for which other 
funds in such account are available.
    ``(e) Conditions.--The Secretary of Defense shall ensure that--
        ``(1) to the maximum extent practicable, no cooperative 
    agreement containing a clause under subsection (d) and no 
    transaction entered into under subsection (a) provides for research 
    that duplicates research being conducted under existing programs 
    carried out by the Department of Defense;
        ``(2) to the extent that the Secretary determines practicable, 
    the funds provided by the Government under a cooperative agreement 
    containing a clause under subsection (d) or a transaction 
    authorized by subsection (a) do not exceed the total amount 
    provided by other parties to the cooperative agreement or other 
    transaction; and
        ``(3) a cooperative agreement containing a clause under 
    subsection (d) or a transaction authorized under subsection (a) is 
    used for a research project only when the use of a standard 
    contract, grant, or cooperative agreement for such project is not 
    feasible or appropriate.
    ``(f) Support Accounts.--There is hereby established on the books 
of the Treasury separate accounts for each of the military departments 
and the Advanced Research Projects Agency for support of research 
projects and development projects provided for in cooperative 
agreements containing a clause under subsection (d) and research 
projects provided for in transactions entered into under subsection 
(a). Funds in those accounts shall be available for the payment of such 
support.
    ``(g) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.
    ``(h) Annual Report.--Not later than 60 days after the end of each 
fiscal year, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and House of Representatives a report on 
all cooperative agreements entered into under section 2358 of this 
title during such fiscal year that contain a clause authorized by 
subsection (d) and on all transactions entered into under subsection 
(a) during such fiscal year. The report shall contain, with respect to 
each such cooperative agreement and transaction, the following:
        ``(1) A general description of the cooperative agreement or 
    other transaction (as the case may be), including the technologies 
    for which research is provided for under such agreement or 
    transaction.
        ``(2) The potential military and, if any, commercial utility of 
    such technologies.
        ``(3) The reasons for not using a contract or grant to provide 
    support for such research.
        ``(4) The amount of the payments, if any, that were received by 
    the Federal Government during the fiscal year covered by the report 
    pursuant to a clause included in such cooperative agreement or 
    other transaction pursuant to subsection (d).
        ``(5) The amount of the payments reported under paragraph (4), 
    if any, that were credited to each account established under 
    subsection (f).
    ``(i) Cooperative Research and Development Agreements Under 
Stevenson-Wydler Technology Innovation Act of 1980.--The Secretary of 
Defense, in carrying out research projects through the Advanced 
Research Projects Agency, and the Secretary of each military 
department, in carrying out research projects, may permit the director 
of any federally funded research and development center to enter into 
cooperative research and development agreements with any person, any 
agency or instrumentality of the United States, any unit of State or 
local government, and any other entity under the authority granted by 
section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3710a). Technology may be transferred to a non-Federal party 
to such an agreement consistent with the provisions of sections 11 and 
12 of such Act (15 U.S.C. 3710, 3710a).''.
    (c) Clerical Amendments.--The table of sections at the beginning of 
chapter 139 of such title is amended--
        (1) by striking out the item relating to section 2358 and 
    inserting in lieu thereof the following:
``2358. Research and development projects.'';

    and
        (2) by striking out the item relating to section 2371 and 
    inserting in lieu thereof the following:
``2371. Research projects: transactions other than contracts and 
          grants.''.

                    Subtitle D--Procurement Protests

              PART I--PROTESTS TO THE COMPTROLLER GENERAL

SEC. 1401. PROTEST DEFINED.

    (a) In General.--Paragraph (1) of section 3551 of title 31, United 
States Code, is amended to read as follows:
        ``(1) The term `protest' means a written objection by an 
    interested party to any of the following:
            ``(A) A solicitation or other request by a Federal agency 
        for offers for a contract for the procurement of property or 
        services.
            ``(B) The cancellation of such a solicitation or other 
        request.
            ``(C) An award or proposed award of such a contract.
            ``(D) A termination or cancellation of an award of such a 
        contract, if the written objection contains an allegation that 
        the termination or cancellation is based in whole or in part on 
        improprieties concerning the award of the contract.''.
    (b) Technical Amendments.--Section 3551 of such title is further 
amended--
        (1) in paragraph (2)--
            (A) by inserting ``The term'' after ``(2)''; and
            (B) by striking out ``; and'' and inserting in lieu thereof 
        a period; and
        (2) in paragraph (3), by inserting ``The term'' after ``(3)''.

SEC. 1402. REVIEW OF PROTESTS AND EFFECT ON CONTRACTS PENDING DECISION.

    (a) Periods for Certain Actions.--Section 3553 of title 31, United 
States Code, is amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by striking out ``one working day 
        of'' and inserting in lieu thereof ``one day after''; and
            (B) in paragraph (2)--
                (i) in subparagraph (A), by striking out ``25 working 
            days from'' and inserting in lieu thereof ``35 days 
            after''; and
                (ii) in subparagraph (C), by striking out ``10 working 
            days from'' and inserting in lieu thereof ``20 days 
            after''; and
        (2) in subsection (c)(3), by striking out ``thereafter'' and 
    inserting in lieu thereof ``after the making of such finding''.
    (b) Suspension of Performance.--Subsection (d) of such section is 
amended to read as follows:
    ``(d)(1) A contractor awarded a Federal agency contract may, during 
the period described in paragraph (4), begin performance of the 
contract and engage in any related activities that result in 
obligations being incurred by the United States under the contract 
unless the contracting officer responsible for the award of the 
contract withholds authorization to proceed with performance of the 
contract.
    ``(2) The contracting officer may withhold an authorization to 
proceed with performance of the contract during the period described in 
paragraph (4) if the contracting officer determines in writing that--
        ``(A) a protest is likely to be filed; and
        ``(B) the immediate performance of the contract is not in the 
    best interests of the United States.
    ``(3)(A) If the Federal agency awarding the contract receives 
notice of a protest in accordance with this section during the period 
described in paragraph (4)--
        ``(i) the contracting officer may not authorize performance of 
    the contract to begin while the protest is pending; or
        ``(ii) if authorization for contract performance to proceed was 
    not withheld in accordance with paragraph (2) before receipt of the 
    notice, the contracting officer shall immediately direct the 
    contractor to cease performance under the contract and to suspend 
    any related activities that may result in additional obligations 
    being incurred by the United States under that contract.
    ``(B) Performance and related activities suspended pursuant to 
subparagraph (A)(ii) by reason of a protest may not be resumed while 
the protest is pending.
    ``(C) The head of the procuring activity may authorize the 
performance of the contract (notwithstanding a protest of which the 
Federal agency has notice under this section)--
        ``(i) upon a written finding that--
            ``(I) performance of the contract is in the best interests 
        of the United States; or
            ``(II) urgent and compelling circumstances that 
        significantly affect interests of the United States will not 
        permit waiting for the decision of the Comptroller General 
        concerning the protest; and
        ``(ii) after the Comptroller General is notified of that 
    finding.
    ``(4) The period referred to in paragraphs (2) and (3)(A), with 
respect to a contract, is the period beginning on the date of the 
contract award and ending on the later of--
        ``(A) the date that is 10 days after the date of the contract 
    award; or
        ``(B) the date that is 5 days after the debriefing date offered 
    to an unsuccessful offeror for any debriefing that is requested 
    and, when requested, is required.''.

SEC. 1403. DECISIONS ON PROTESTS.

    (a) Periods for Certain Actions.--Section 3554(a) of title 31, 
United States Code, is amended--
        (1) in paragraph (1), by striking out ``90 working days from'' 
    and inserting in lieu thereof ``125 days after'';
        (2) in paragraph (2), by striking out ``45 calendar days from'' 
    and inserting ``65 days after'';
        (3) by redesignating paragraph (3) as paragraph (4); and
        (4) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3) An amendment to a protest that adds a new ground of protest, 
if timely made, should be resolved, to the maximum extent practicable, 
within the time limit established under paragraph (1) of this 
subsection for final decision of the initial protest. If an amended 
protest cannot be resolved within such time limit, the Comptroller 
General may resolve the amended protest through the express option 
under paragraph (2) of this subsection.''.
    (b) GAO Recommendations on Protests.--(1) Section 3554 of title 31, 
United States Code, is amended in subsection (b) by adding at the end 
the following new paragraph:
    ``(3) If the Federal agency fails to implement fully the 
recommendations of the Comptroller General under this subsection with 
respect to a solicitation for a contract or an award or proposed award 
of a contract within 60 days after receiving the recommendations, the 
head of the procuring activity responsible for that contract shall 
report such failure to the Comptroller General not later than 5 days 
after the end of such 60-day period.''.
    (2) Subsection (c) of such section is amended to read as follows:
    ``(c)(1) If the Comptroller General determines that a solicitation 
for a contract or a proposed award or the award of a contract does not 
comply with a statute or regulation, the Comptroller General may 
recommend that the Federal agency conducting the procurement pay to an 
appropriate interested party the costs of--
        ``(A) filing and pursuing the protest, including reasonable 
    attorneys' fees and consultant and expert witness fees; and
        ``(B) bid and proposal preparation.
    ``(2) No party (other than a small business concern (within the 
meaning of section 3(a) of the Small Business Act)) may be paid, 
pursuant to a recommendation made under the authority of paragraph 
(1)--
        ``(A) costs for consultant and expert witness fees that exceed 
    the highest rate of compensation for expert witnesses paid by the 
    Federal Government; or
        ``(B) costs for attorneys' fees that exceed $150 per hour 
    unless the agency determines, based on the recommendation of the 
    Comptroller General on a case by case basis, that an increase in 
    the cost of living or a special factor, such as the limited 
    availability of qualified attorneys for the proceedings involved, 
    justifies a higher fee.
    ``(3) If the Comptroller General recommends under paragraph (1) 
that a Federal agency pay costs to an interested party, the Federal 
agency shall--
        ``(A) pay the costs promptly; or
        ``(B) if the Federal agency does not make such payment, 
    promptly report to the Comptroller General the reasons for the 
    failure to follow the Comptroller General's recommendation.
    ``(4) If the Comptroller General recommends under paragraph (1) 
that a Federal agency pay costs to an interested party, the Federal 
agency and the interested party shall attempt to reach an agreement on 
the amount of the costs to be paid. If the Federal agency and the 
interested party are unable to agree on the amount to be paid, the 
Comptroller General may, upon the request of the interested party, 
recommend to the Federal agency the amount of the costs that the 
Federal agency should pay.''.
    (3) Subsection (e) of such section is amended to read as follows:
    ``(e)(1) The Comptroller General shall report promptly to the 
Committee on Governmental Affairs and the Committee on Appropriations 
of the Senate and to the Committee on Government Operations and the 
Committee on Appropriations of the House of Representatives any case in 
which a Federal agency fails to implement fully a recommendation of the 
Comptroller General under subsection (b) or (c). The report shall 
include--
        ``(A) a comprehensive review of the pertinent procurement, 
    including the circumstances of the failure of the Federal agency to 
    implement a recommendation of the Comptroller General; and
        ``(B) a recommendation regarding whether, in order to correct 
    an inequity or to preserve the integrity of the procurement 
    process, the Congress should consider--
            ``(i) private relief legislation;
            ``(ii) legislative rescission or cancellation of funds;
            ``(iii) further investigation by Congress; or
            ``(iv) other action.
    ``(2) Not later than January 31 of each year, the Comptroller 
General shall transmit to the Congress a report containing a summary of 
each instance in which a Federal agency did not fully implement a 
recommendation of the Comptroller General under subsection (b) or (c) 
during the preceding year. The report shall also describe each instance 
in which a final decision in a protest was not rendered within 125 days 
after the date the protest is submitted to the Comptroller General.''.
    (4) Costs to which the Comptroller General declared an interested 
party to be entitled under section 3554 of title 31, United States 
Code, as in effect immediately before the enactment of this Act, shall, 
if not paid or otherwise satisfied by the Federal agency concerned 
before the date of the enactment of this Act, be paid promptly.
    (c) Restriction on Access to Certain Information.--Section 3553(f) 
of title 31, United States Code, is amended--
        (1) by inserting ``(1)'' after ``(f)''; and
        (2) by adding at the end the following:
    ``(2)(A) The Comptroller General may issue protective orders which 
establish terms, conditions, and restrictions for the provision of any 
document to a party under paragraph (1), that prohibit or restrict the 
disclosure by the party of information described in subparagraph (B) 
that is contained in such a document.
    ``(B) Information referred to in subparagraph (A) is procurement 
sensitive information, trade secrets, or other proprietary or 
confidential research, development, or commercial information.
    ``(C) A protective order under this paragraph shall not be 
considered to authorize the withholding of any document or information 
from Congress or an executive agency.''.

SEC. 1404. REGULATIONS.

    (a) Computation of Periods.--Section 3555 of title 31, United 
States Code, is amended--
        (1) by redesignating subsection (b) as subsection (d); and
        (2) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) The procedures shall provide that, in the computation of any 
period described in this subchapter--
        ``(1) the day of the act, event, or default from which the 
    designated period of time begins to run not be included; and
        ``(2) the last day after such act, event, or default be 
    included, unless--
            ``(A) such last day is a Saturday, a Sunday, or a legal 
        holiday; or
            ``(B) in the case of a filing of a paper at the General 
        Accounting Office or a Federal agency, such last day is a day 
        on which weather or other conditions cause the closing of the 
        General Accounting Office or Federal agency, in which event the 
        next day that is not a Saturday, Sunday, or legal holiday shall 
        be included.''.
    (b) Electronic Filings and Disseminations.--Such section, as 
amended by subsection (a), is further amended by inserting after 
subsection (b) the following new subsection:
    ``(c) The Comptroller General may prescribe procedures for the 
electronic filing and dissemination of documents and information 
required under this subchapter. In prescribing such procedures, the 
Comptroller General shall consider the ability of all parties to 
achieve electronic access to such documents and records.''.
    (c) Repeal of Obsolete Deadline.--Subsection (a) of such section is 
amended by striking out ``Not later than January 15, 1985, the'' and 
inserting in lieu thereof ``The''.

     PART II--PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING

SEC. 1431. REVOCATION OF DELEGATIONS OF PROCUREMENT AU- THORITY.

    Section 111(b)(3) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(b)(3)) is amended by inserting 
before the period at the end of the third sentence the following: ``, 
including the authority to revoke a delegation of authority with 
respect to a particular contract after award of the contract, except 
that the Administrator may revoke a delegation of authority after the 
contract is awarded only when there is a finding of a violation of law 
or regulation in connection with the contract award.''.

SEC. 1432. AUTHORITY OF THE GENERAL SERVICES ADMINISTRATION BOARD OF 
              CONTRACT APPEALS.

    The first sentence of section 111(f)(1) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759(f)(1)) is amended to 
read as follows: ``Upon request of an interested party in connection 
with any procurement that is subject to this section (including any 
such procurement that is subject to delegation of procurement 
authority), the board of contract appeals of the General Services 
Administration (hereafter in this subsection referred to as the 
`board') shall review, as provided in this subsection, any decision by 
a contracting officer that is alleged to violate a statute, a 
regulation, or the conditions of a delegation of procurement 
authority.''.

SEC. 1433. PERIODS FOR CERTAIN ACTIONS.

    (a) Suspension of Procurement Authority.--Section 111(f) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
759(f)) is amended--
        (1) in paragraph (2)(B)--
            (A) by redesignating clauses (i) and (ii) as subclauses (I) 
        and (II), respectively;
            (B) by inserting ``(i)'' after ``(B)''; and
            (C) by adding at the end the following:
    ``(ii) A suspension under this subparagraph shall not preclude the 
Federal agency concerned from continuing the procurement process up to 
but not including award of the contract unless the board determines 
such action is not in the best interests of the United States.''; and
        (2) in paragraph (3), by striking out subparagraph (A) and 
    inserting in lieu thereof the following:
    ``(A)(i) If, with respect to an award of a contract, the board 
receives notice of a protest under this subsection within the period 
described in clause (ii), the board shall, at the request of an 
interested party, hold a hearing to determine whether the board should 
suspend the procurement authority of the Administrator or the 
Administrator's delegation of procurement authority for the protested 
procurement on an interim basis until the board can decide the protest.
    ``(ii) The period referred to in clause (i) is the period beginning 
on the date on which the contract is awarded and ending at the end of 
the later of--
        ``(I) the tenth day after the date of contract award; or
        ``(II) the fifth day after the debriefing date offered to an 
    unsuccessful offeror for any debriefing that is requested and, when 
    requested, is required.
    ``(iii) The board shall hold the requested hearing within 5 days 
after the date of the filing of the protest or, in the case of a 
request for debriefing under the provisions of section 2305(b)(5) of 
title 10, United States Code, or section 303B(e) of this Act, within 5 
days after the later of the date of the filing of the protest or the 
date of the debriefing.''.
    (b) Final Decision.--Paragraph (4)(B) of such section 111(f) is 
amended--
        (1) by striking out ``45 working days'' and inserting in lieu 
    thereof ``65 days''; and
        (2) by adding at the end the following: ``An amendment which 
    adds a new ground of protest should be resolved, to the maximum 
    extent practicable, within the time limits established for 
    resolution of the initial protest.''.

SEC. 1434. DISMISSALS OF PROTESTS.

    Section 111(f)(4) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(4)) is amended by striking out 
subparagraph (C) and inserting in lieu thereof the following:
    ``(C) The board may dismiss a protest that the board determines--
        ``(i) is frivolous;
        ``(ii) has been brought or pursued in bad faith; or
        ``(iii) does not state on its face a valid basis for 
    protest.''.

SEC. 1435. AWARD OF COSTS.

    (a) Award.--Section 111(f)(5) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759(f)(5)) is amended by 
striking out subparagraph (C) and inserting in lieu thereof the 
following:
    ``(C) Whenever the board makes such a determination, it may, in 
accordance with section 1304 of title 31, United States Code, further 
declare an appropriate prevailing party to be entitled to the cost of 
filing and pursuing the protest (including reasonable attorneys' fees 
and consultant and expert witness fees), and bid and proposal 
preparation. However, no party (other than a small business concern 
(within the meaning of section 3(a) of the Small Business Act)) may be 
declared entitled to costs for consultants and expert witness fees that 
exceed the highest rate of compensation for expert witnesses paid by 
the Federal Government, and no party (other than a small business 
concern (within the meaning of section 3(a) of the Small Business Act)) 
may be declared entitled to attorneys' fees that exceed $150 per hour 
unless the board, on a case by case basis, determines that an increase 
in the cost of living or a special factor, such as the limited 
availability of qualified attorneys for the proceedings involved, 
justifies a higher fee.''.
    (b) Definition of Prevailing Party.--Section 111(f)(9) of such Act 
(40 U.S.C. 759(f)(9)) is amended by adding at the end the following:
        ``(C) The term `prevailing party', with respect to a 
    determination of the board under paragraph (5)(B) that a challenged 
    action of a Federal agency violates a statute or regulation or the 
    conditions of a delegation of procurement authority issued pursuant 
    to this section, means a party that demonstrated such violation.''.

SEC. 1436. DISMISSAL AGREEMENTS.

    Section 111(f)(5) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(5)), as amended by section 1435, 
is further amended by adding at the end the following new 
subparagraphs:
    ``(D) Any agreement that provides for the dismissal of a protest 
and involves a direct or indirect expenditure of appropriated funds 
shall be submitted to the board and shall be made a part of the public 
record (subject to any protective order considered appropriate by the 
board) before dismissal of the protest. If a Federal agency is a party 
to a settlement agreement, the submission of the agreement to the board 
shall include a memorandum, signed by the contracting officer 
concerned, that describes in detail the procurement, the grounds for 
protest, the Federal Government's position regarding the grounds for 
protest, the terms of the settlement, and the agency's position 
regarding the propriety of the award or proposed award of the contract 
at issue in the protest.
    ``(E) Payment of amounts due from an agency under subparagraph (C) 
or under the terms of a settlement agreement under subparagraph (D) 
shall be made from the appropriation made by section 1304 of title 31, 
United States Code, for the payment of judgments. The Federal agency 
concerned shall reimburse that appropriation account out of funds 
available for the procurement.''.

SEC. 1437. MATTERS TO BE COVERED IN REGULATIONS.

    Section 111(f) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759(f)) is further amended--
        (1) by inserting after paragraph (6) the following:
    ``(7)(A) The board shall adopt and issue such rules and procedures 
as may be necessary to the expeditious disposition of protests filed 
under the authority of this subsection.
    ``(B) The procedures shall provide that, in the computation of any 
period described in this subsection--
        ``(i) the day of the act, event, or default from which the 
    designated period of time begins to run not be included; and
        ``(ii) the last day after such act, event, or default be 
    included, unless--
            ``(I) such last day is a Saturday, a Sunday, or a legal 
        holiday; or
            ``(II) in the case of a filing of a paper at the board, 
        such last day is a day on which weather or other conditions 
        cause the closing of the board in which event the next day that 
        is not a Saturday, Sunday, or legal holiday shall be included.
    ``(C) The procedures may provide for electronic filing and 
dissemination of documents and information required under this 
subsection and in so providing shall consider the ability of all 
parties to achieve electronic access to such documents and records.
    ``(D) The procedures shall provide that if the board expressly 
finds that a protest or a portion of a protest is frivolous or has been 
brought or pursued in bad faith, or that any person has willfully 
abused the board's process during the course of a protest, the board 
may impose appropriate procedural sanctions, including dismissal of the 
protest.''; and
        (2) by striking out paragraph (8).

SEC. 1438. DEFINITION OF PROTEST.

    Section 111(f)(9) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(9)) is amended--
        (1) by striking out ``subsection--'' and inserting in lieu 
    thereof ``subsection:'';
        (2) by striking out subparagraph (A) and inserting in lieu 
    thereof the following:
        ``(A) The term `protest' means a written objection by an 
    interested party to any of the following:
            ``(i) A solicitation or other request by a Federal agency 
        for offers for a contract for the procurement of property or 
        services.
            ``(ii) The cancellation of such a solicitation or other 
        request.
            ``(iii) An award or proposed award of such a contract.
            ``(iv) A termination or cancellation of an award of such a 
        contract, if the written objection contains an allegation that 
        the termination or cancellation is based in whole or in part on 
        improprieties concerning the award of the contract.''; and
        (3) by capitalizing the first letter of the first word in 
    subparagraph (B).

SEC. 1439. OVERSIGHT OF ACQUISITION OF AUTOMATIC DATA PROCESSING 
              EQUIPMENT BY FEDERAL AGENCIES.

    Section 111 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 759) is amended by adding at the end the following 
new subsection:
    ``(h) Data Collection.--(1) The Administrator shall collect and 
compile data regarding the procurement of automatic data processing 
equipment under this section. The data collected and compiled shall 
include, at a minimum, with regard to each contract for such a 
procurement, the following:
        ``(A) The procuring agency.
        ``(B) The contractor.
        ``(C) The automatic data processing equipment and services 
    procured.
        ``(D) The manufacturer of the equipment procured.
        ``(E) The amount of the contract, to the extent that the amount 
    is not proprietary information.
        ``(F) The type of contract used.
        ``(G) The extent of competition for award.
        ``(H) Whether compatibility restrictions were used in awarding 
    the contract.
        ``(I) Significant modifications of the contract.
        ``(J) Contract price, to the extent that the price is not 
    proprietary information.
    ``(2) The head of each Federal agency shall report to the 
Administrator in accordance with regulations issued by the 
Administrator all information that the Administrator determines 
necessary in order to satisfy the requirements in paragraph (1).
    ``(3) The Administrator--
            ``(A) shall carry out a systematic, periodic review of 
        information received under this subsection;
            ``(B) shall use such information, as appropriate, to 
        determine the compliance of Federal agencies with the 
        requirements of this section; and
            ``(C) may take appropriate corrective action regarding an 
        agency's authority to lease and purchase automatic data 
        processing equipment upon any substantial failure by the head 
        of the agency to report to the Administrator in accordance with 
        this subsection.
    ``(4) The Administrator shall take appropriate corrective action 
upon failure of a Federal agency to comply with the terms of any 
delegation of authority to lease or purchase automatic data processing 
equipment or failure to comply with any applicable law or regulation.
    ``(5) The Administrator shall require in the regulations 
implementing this subsection that (A) data collected pursuant to this 
subsection be drawn from existing Federal agency information; and (B) 
no new or additional information reporting requirements may be imposed 
on offerors or contractors to collect such data.''.

           Subtitle E--Policy, Definitions, and Other Matters

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 1501. REPEAL OF POLICY STATEMENT.

    (a) Repeal.--Section 2301 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 137 of such title is amended by striking out the item relating 
to section 2301.

SEC. 1502. DEFINITIONS.

    Section 2302 of title 10, United States Code, is amended--
        (1) by striking out paragraph (3) and inserting in lieu thereof 
    the following:
        ``(3) The following terms have the meanings provided such terms 
    in section 4 of the Office of Federal Procurement Policy Act (41 
    U.S.C. 403):
            ``(A) The term `procurement'.
            ``(B) The term `procurement system'.
            ``(C) The term `standards'.
            ``(D) The term `full and open competition'.
            ``(E) The term `responsible source'.
            ``(F) The term `item'.
            ``(G) The term `item of supply'.
            ``(H) The term `supplies'.
            ``(I) The term `commercial item'.
            ``(J) The term `nondevelopmental item'.
            ``(K) The term `commercial component'
            ``(L) The term `component'.''; and
        (2) by striking out paragraph (7) and inserting in lieu thereof 
    the following new paragraph (7):
        ``(7) The term `simplified acquisition threshold' has the 
    meaning provided that term in section 4 of the Office of Federal 
    Procurement Policy Act (41 U.S.C. 403), except that, in the case of 
    any contract to be awarded and performed, or purchase to be made, 
    outside the United States in support of a contingency operation, 
    the term means an amount equal to two times the amount specified 
    for that term in section 4 of such Act.''.

SEC. 1503. DELEGATION OF PROCUREMENT FUNCTIONS.

    (a) Consolidation of Delegation Authority.--(1) Section 2311 of 
title 10, United States Code, is amended to read as follows:

``Sec. 2311. Assignment and delegation of procurement functions and 
            responsibilities

    ``(a) In General.--Except to the extent expressly prohibited by 
another provision of law, the head of an agency may delegate, subject 
to his direction, to any other officer or official of that agency, any 
power under this chapter.
    ``(b) Procurements For or With Other Agencies.--Subject to 
subsection (a), to facilitate the procurement of property and services 
covered by this chapter by each agency named in section 2303 of this 
title for any other agency, and to facilitate joint procurement by 
those agencies--
        ``(1) the head of an agency may delegate functions and assign 
    responsibilities relating to procurement to any officer or employee 
    within such agency;
        ``(2) the heads of two or more agencies may by agreement 
    delegate procurement functions and assign procurement 
    responsibilities from one agency to another of those agencies or to 
    an officer or civilian employee of another of those agencies; and
        ``(3) the heads of two or more agencies may create joint or 
    combined offices to exercise procurement functions and 
    responsibilities.
    ``(c) Approval of Terminations and Reductions of Joint Acquisition 
Programs.--(1) The Secretary of Defense shall prescribe regulations 
that prohibit each military department participating in a joint 
acquisition program approved by the Under Secretary of Defense for 
Acquisition and Technology from terminating or substantially reducing 
its participation in such program without the approval of the Under 
Secretary.
    ``(2) The regulations shall include the following provisions:
        ``(A) A requirement that, before any such termination or 
    substantial reduction in participation is approved, the proposed 
    termination or reduction be reviewed by the Joint Requirements 
    Oversight Council of the Department of Defense.
        ``(B) A provision that authorizes the Under Secretary of 
    Defense for Acquisition and Technology to require a military 
    department whose participation in a joint acquisition program has 
    been approved for termination or substantial reduction to continue 
    to provide some or all of the funding necessary for the acquisition 
    program to be continued in an efficient manner.''.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking out the item relating to section 2311 and 
inserting in lieu thereof the following:
``2311. Assignment and delegation of procurement functions and 
          responsibilities.''.

    (b) Conforming Repeal.--(1) Section 2308 of title 10, United States 
Code, is repealed.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking out the item related to section 2308.

SEC. 1504. DETERMINATIONS AND DECISIONS.

    Section 2310 of title 10, United States Code, is amended to read as 
follows:

``Sec. 2310. Determinations and decisions

    ``(a) Individual or Class Determinations and Decisions 
Authorized.--Determinations and decisions required to be made under 
this chapter by the head of an agency may be made for an individual 
purchase or contract or, except to the extent expressly prohibited by 
another provision of law, for a class of purchases or contracts. Such 
determinations and decisions are final.
    ``(b) Written Findings Required.--(1) Each determination or 
decision under section 2306(g)(1), 2307(d), or 2313(c)(2)(B) of this 
title shall be based on a written finding by the person making the 
determination or decision. The finding shall set out facts and 
circumstances that support the determination or decision.
    ``(2) Each finding referred to in paragraph (1) is final. The head 
of the agency making such finding shall maintain a copy of the finding 
for not less than 6 years after the date of the determination or 
decision.''.

SEC. 1505. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL AC- TIONS.

    (a) Clarification of Limitation.--Subsection (b) of section 2326 of 
title 10, United States Code, is amended--
        (1) in the subsection heading, by striking out ``and 
    Expenditure'';
        (2) in paragraph (1)(B), by striking out ``or expended'';
        (3) in paragraph (2), by striking out ``expend'' and inserting 
    in lieu thereof ``obligate''; and
        (4) in paragraph (3)--
            (A) by striking out ``expended'' and inserting in lieu 
        thereof ``obligated''; and
            (B) by striking out ``expend'' and inserting in lieu 
        thereof ``obligate''.
    (b) Waiver Authority.--Such subsection is further amended--
        (1) by redesignating paragraph (4) as paragraph (5); and
        (2) by inserting after paragraph (3) the following new 
    paragraph (4):
    ``(4) The head of an agency may waive the provisions of this 
subsection with respect to a contract of that agency if such head of an 
agency determines that the waiver is necessary in order to support a 
contingency operation.''.
    (c) Inapplicability of Restrictions to Contracts Within the 
Simplified Acquisition Threshold.--Subsection (g)(1)(B) of such section 
is amended by striking out ``small purchase threshold'' and inserting 
in lieu thereof ``simplified acquisition threshold''.

SEC. 1506. REPEAL OF REQUIREMENT RELATING TO PRODUCTION SPECIAL TOOLING 
              AND PRODUCTION SPECIAL TEST EQUIPMENT.

    (a) Repeal.--Section 2329 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 137 of such title is amended by striking out the item related 
to section 2329.

SEC. 1507. REGULATIONS FOR BIDS.

    Section 2381(a) of title 10, United States Code, is amended by 
striking out ``(a) The Secretary'' and all that follows through the end 
of paragraph (1) and inserting in lieu thereof the following:
    ``(a) The Secretary of Defense may--
        ``(1) prescribe regulations for the preparation, submission, 
    and opening of bids for contracts; and''.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 1551. DEFINITIONS.

    Section 309 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 259) is amended by striking out subsection (c) and 
inserting in lieu thereof the following:
    ``(c) The following terms have the meanings provided such terms in 
section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 
403):
        ``(1) The term `procurement'.
        ``(2) The term `procurement system'.
        ``(3) The term `standards'.
        ``(4) The term `full and open competition'.
        ``(5) The term `responsible source'.
        ``(6) The term `technical data'.
        ``(7) The term `major system'.
        ``(8) The term `item'.
        ``(9) The term `item of supply'.
        ``(10) The term `supplies'.
        ``(11) The term `commercial item'.
        ``(12) The term `nondevelopmental item'.
        ``(13) The term `commercial component'.
        ``(14) The term `component'.
    ``(d) The term `simplified acquisition threshold' has the meaning 
provided that term in section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403), except that, in the case of any contract to 
be awarded and performed, or purchase to be made, outside the United 
States in support of a contingency operation, the term means an amount 
equal to two times the amount specified for that term in section 4 of 
such Act.
    ``(e) The term `Federal Acquisition Regulation' means the Federal 
Acquisition Regulation issued pursuant to section 25(c)(1) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 421(c)(1)).''.

SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the 
following new section:

``SEC. 311. ASSIGNMENT AND DELEGATION OF PROCUREMENT FUNCTIONS AND 
              RESPONSIBILITIES.

    ``(a) In General.--Except to the extent expressly prohibited by 
another provision of law, the head of an executive agency may delegate 
to any other officer or official of that agency, any power under this 
title.
    ``(b) Procurements For or With Other Agencies.--Subject to 
subsection (a), to facilitate the procurement of property and services 
covered by this title by each executive agency for any other executive 
agency, and to facilitate joint procurement by those executive 
agencies--
        ``(1) the head of an executive agency may delegate functions 
    and assign responsibilities relating to procurement to any officer 
    or employee within such agency;
        ``(2) the heads of two or more executive agencies may by 
    agreement delegate procurement functions and assign procurement 
    responsibilities, consistent with section 1535 of title 31, United 
    States Code, and regulations issued under section 1074 of the 
    Federal Acquisition Streamlining Act of 1994, 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 two or more executive agencies may establish 
    joint or combined offices to exercise procurement functions and 
    responsibilities.''.

SEC. 1553. DETERMINATIONS AND DECISIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1552, is further 
amended by adding at the end the following new section:

``SEC. 312. DETERMINATIONS AND DECISIONS.

    ``(a) Individual or Class Determinations and Decisions 
Authorized.--Determinations and decisions required to be made under 
this title by the head of an executive agency may be made for an 
individual purchase or contract or, except to the extent expressly 
prohibited by another provision of law, for a class of purchases or 
contracts. Such determinations and decisions are final.
    ``(b) Written Findings Required.--(1) Each determination under 
section 305(d) or section 304C(c)(2)(B) shall be based on a written 
finding by the person making the determination or decision. The finding 
shall set out facts and circumstances that support the determination or 
decision.
    ``(2) Each finding referred to in paragraph (1) is final.
    ``(3) 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 a person in that executive agency. The 
period begins on the date of the determination or decision to which the 
finding relates.''.

SEC. 1554. REPEAL OF PREFERENCE FOR RECYCLED TONER CARTRIDGES.

    The following provisions of law, relating to a preference for 
procurement of recycled toner cartridges, are repealed:
        (1) Section 630 of Public Law 102-393 (106 Stat. 1773) and the 
    provision of law enclosed in quotation marks in that section (42 
    U.S.C. 6962(j)).
        (2) Section 401 of Public Law 103-123 (107 Stat. 1238; 42 
    U.S.C. 6962 note).

SEC. 1555. COOPERATIVE PURCHASING.

    Subsection (b) of section 201 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481), is amended to read 
as follows:
    ``(b)(1) The Administrator shall, as far as practicable, provide 
any of the services specified in subsection (a) of this section to any 
other Federal agency, mixed-ownership Government corporation (as 
defined in section 9101 of title 31, United States Code), or the 
District of Columbia, upon its request.
    ``(2)(A) The Administrator may provide for the use of Federal 
supply schedules of the General Services Administration by any of the 
following entities upon request:
        ``(i) A State, any department or agency of a State, and any 
    political subdivision of a State, including a local government.
        ``(ii) The Commonwealth of Puerto Rico.
        ``(iii) The government of an Indian tribe (as defined in 
    section 4(e) of the Indian Self-Determination and Education 
    Assistance Act (25 U.S.C. 450b(e))).
    ``(B) Subparagraph (A) may not be construed to authorize an entity 
referred to in that subparagraph to order existing stock or inventory 
from federally owned and operated, or federally owned and contractor 
operated, supply depots, warehouses, or similar facilities.
    ``(C) In any case in which an entity listed in subparagraph (A) 
uses a Federal supply schedule, the Administrator may require the 
entity to reimburse the General Services Administration for any 
administrative costs of using the schedule.
    ``(3)(A) Upon the request of a qualified nonprofit agency for the 
blind or other severely handicapped that is to provide a commodity or 
service to the Federal Government under the Javits-Wagner-O'Day Act (41 
U.S.C. 46 et seq.), the Administrator may provide any of the services 
specified in subsection (a) to such agency to the extent practicable.
    ``(B) A nonprofit agency receiving services under the authority of 
subparagraph (A) shall use the services directly in making or providing 
an approved commodity or approved service to the Federal Government.
    ``(C) In this paragraph:
        ``(i) The term `qualified nonprofit agency for the blind or 
    other severely handicapped' means--
            ``(I) a qualified nonprofit agency for the blind, as 
        defined in section 5(3) of the Javits-Wagner-O'Day Act (41 
        U.S.C. 48b(3)); and
            ``(II) a qualified nonprofit agency for other severely 
        handicapped, as defined in section 5(4) of such Act (41 U.S.C. 
        48b(4)).
        ``(ii) The terms `approved commodity' and `approved service' 
    mean a commodity and a service, respectively, that has been 
    determined by the Committee for Purchase from the Blind and Other 
    Severely Handicapped under section 2 of the Javits-Wagner-O'Day Act 
    (41 U.S.C. 47) to be suitable for procurement by the Federal 
    Government.''.

                   TITLE II--CONTRACT ADMINISTRATION
                      Subtitle A--Contract Payment

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2001. CONTRACT FINANCING.

    (a) Reorganization of Principal Authority Provision.--Section 2307 
of title 10, United States Code, is amended--
        (1) by striking out the section heading and inserting in lieu 
    thereof the following:

``Sec. 2307. Contract financing'';

        (2) by inserting ``Payment Authority.--'' after ``(a)'' in 
    subsection (a);
        (3) by inserting ``Payment Amount.--'' after ``(b)'' in 
    subsection (b);
        (4) by inserting ``Security for Advance Payments.--'' after 
    ``(c)'' in subsection (c);
        (5) by inserting ``Conditions for Progress Payments.--'' after 
    ``(d)'' in subsection (d);
        (6) by inserting ``Action in Case of Fraud.--'' after ``(e)'' 
    in subsection (e); and
        (7) by redesignating subsections (b), (c), (d), and (e) as 
    subsections (c), (d), (e), and (h), respectively.
    (b) Performance-Based Payments.--Such section, as amended by 
subsection (a), is further amended by inserting after subsection (a) 
the following new subsection (b):
    ``(b) Performance-Based Payments.--Whenever practicable, payments 
under subsection (a) 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.''.
    (c) Terminology Correction.--Subsection (a)(2) of such section is 
amended by striking out ``bid''.
    (d) Effective Date of Lien Related to Advance Payments.--Such 
section, as amended by subsection (a)(7), is further amended in 
subsection (d) by inserting before the period at the end of the third 
sentence the following: ``and is effective immediately upon the first 
advancement of funds without filing, notice, or any other action by the 
United States''.
    (e) Conditions for Progress Payments.--Such section, as amended by 
subsection (a)(7), is further amended in subsection (e)--
        (1) in the first sentence of paragraph (1), by striking out 
    ``work, which'' and all that follows through ``accomplished'' and 
    inserting in lieu thereof ``work accomplished that meets standards 
    established under the contract''; and
        (2) by striking out paragraph (3) and inserting in lieu thereof 
    the following:
    ``(3) This subsection applies to any contract in an amount greater 
than $25,000.''.
    (f) Conditions for Payments for Commercial Items.--Such section, as 
amended by subsection (a)(7), is further amended by inserting after 
subsection (e) the following new subsection (f):
    ``(f) Conditions for Payments for Commercial Items.--(1) Payments 
under subsection (a) for commercial items may be made under such terms 
and conditions as the head of the agency determines are appropriate or 
customary in the commercial marketplace and are in the best interests 
of the United States. The head of the agency shall obtain adequate 
security for such payments. If the security is in the form of a lien in 
favor of the United States, such lien is paramount to all other liens 
and is effective immediately upon the first payment, without filing, 
notice, or other action by the United States.
    ``(2) Advance payments made under subsection (a) for commercial 
items may include payments, in a total amount of not more than 15 
percent of the contract price, in advance of any performance of work 
under the contract.
    ``(3) The conditions of subsections (d) and (e) need not be applied 
if they would be inconsistent, as determined by the head of the agency, 
with commercial terms and conditions pursuant to paragraphs (1) and 
(2).''.
    (g) Navy Contracts.--Such section, as amended by subsection (f), is 
further amended by inserting after subsection (f) the following new 
subsection (g):
    ``(g) Certain Navy Contracts.--(1) The Secretary of the Navy shall 
provide that the rate for progress payments on any contract awarded by 
the Secretary for repair, maintenance, or overhaul of a naval vessel 
shall be not less than--
        ``(A) 95 percent, in the case of a firm considered to be a 
    small business; and
        ``(B) 90 percent, in the case of any other firm.
    ``(2) The Secretary of the Navy may advance to private salvage 
companies such funds as the Secretary considers necessary to provide 
for the immediate financing of salvage operations. Advances under this 
paragraph shall be made on terms that the Secretary considers adequate 
for the protection of the United States.
    ``(3) The Secretary of the Navy shall provide, in each contract for 
construction or conversion of a naval vessel, that, when partial, 
progress, or other payments are made under such contract, the United 
States is secured by a lien upon work in progress and on property 
acquired for performance of the contract on account of all payments so 
made. The lien is paramount to all other liens.''.
    (h) Relationship To Prompt Payment Requirements.--The amendments 
made by this section are not intended to impair or modify procedures 
required by the provisions of chapter 39 of title 31, United States 
Code, and the regulations issued pursuant to such provisions of law (as 
such procedures are in effect on the date of the enactment of this 
Act), except that the Government may accept payment terms offered by a 
contractor offering a commercial item.
    (i) Clerical Amendment.--The table of sections at the beginning of 
chapter 137 of title 10, United States Code, is amended by striking out 
the item relating to section 2307 and inserting in lieu thereof the 
following:
``2307. Contract financing.''.

    (j) Repeal of Superseded Provisions.--(1) Sections 7312, 7364, and 
7521 of title 10, United States Code, are repealed.
    (2) Section 7522 of such title is amended--
        (A) by striking out subsection (b); and
        (B) by redesignating subsection (c) as subsection (b).
    (3) Chapters 633, 637, and 645 of such title are amended by 
striking out items in the tables of sections for such chapters as 
follows:
        (A) For chapter 633, the item relating to section 7312.
        (B) For chapter 637, the item relating to section 7364.
        (C) For chapter 645, the item relating to section 7521.

SEC. 2002. REPEAL OF VOUCHERING PROCEDURES SECTION.

    (a) Repeal.--Section 2355 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking out the item relating 
to section 2355.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2051. CONTRACT FINANCING.

    (a) Reorganization of Principal Authority Provision.--Section 305 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 255) is amended--
        (1) by striking out the section heading and the section 
    designation and inserting in lieu thereof the following:

``SEC. 305. CONTRACT FINANCING.'';

        (2) by inserting ``Payment Authority.--'' after ``(a)'' in 
    subsection (a);
        (3) by inserting ``Payment Amount.--'' after ``(b)'' in 
    subsection (b);
        (4) by inserting ``Security for Advance Payments.--'' after 
    ``(c)'' in subsection (c); and
        (5) by redesignating subsections (b) and (c) as subsections (c) 
    and (d), respectively.
    (b) Performance-Based Payments.--Such section, as amended by 
subsection (a), is further amended by inserting after subsection (a) 
the following new subsection (b):
    ``(b) Performance-Based Payments.--Whenever practicable, payments 
under subsection (a) 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.''.
    (c) Terminology Correction.--Subsection (a)(2) of such section is 
amended by striking out ``bid''.
    (d) Effective Date of Lien Related to Advance Payments.--Such 
section, as amended by subsection (a)(5), is further amended in 
subsection (d) by inserting before the period at the end of the third 
sentence the following: ``and is effective immediately upon the first 
advancement of funds without filing, notice, or any other action by the 
United States''.
    (e) Revision of Civilian Agency Provision To Ensure Uniform 
Requirements for Progress Payments.--Such section is further amended by 
adding at the end the following new subsections:
    ``(e) Conditions for Progress Payments.--(1) The executive agency 
shall ensure that any payment for work in progress (including 
materials, labor, and other items) under a contract of an executive 
agency that provides for such payments is commensurate with the work 
accomplished that meets standards established under the contract. The 
contractor shall provide such information and evidence as the executive 
agency determines necessary to permit the executive agency to carry out 
the preceding sentence.
    ``(2) The executive agency shall ensure that progress payments 
referred to in paragraph (1) are not made for more than 80 percent of 
the work accomplished under the contract so long as the executive 
agency has not made the contractual terms, specifications, and price 
definite.
    ``(3) This subsection applies to any contract in an amount greater 
than $25,000.
    ``(f) Conditions for Payments for Commercial Items.--(1) Payments 
under subsection (a) for commercial items may be made under such terms 
and conditions as the head of the executive agency determines are 
appropriate or customary in the commercial marketplace and are in the 
best interests of the United States. The head of the executive agency 
shall obtain adequate security for such payments. If the security is in 
the form of a lien in favor of the United States, such lien is 
paramount to all other liens and is effective immediately upon the 
first payment, without filing, notice, or other action by the United 
States.
    ``(2) Advance payments made under subsection (a) for commercial 
items may include payments, in a total amount of not more than 15 
percent of the contract price, in advance of any performance of work 
under the contract.
    ``(3) The conditions of subsections (d) and (e) 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 
paragraphs (1) and (2).''.
    ``(g) Action in Case of Fraud.--(1) 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 such contractor.
    ``(2) The head of an executive agency receiving a recommendation 
under paragraph (1) 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. Upon making such a determination, 
the head of the executive agency may reduce or suspend further payments 
to the contractor under such contract.
    ``(3) The extent of any reduction or suspension of payments by an 
executive agency under paragraph (2) on the basis of fraud shall be 
reasonably commensurate with the anticipated loss to the United States 
resulting from the fraud.
    ``(4) A written justification for each decision of the head of an 
executive agency whether to reduce or suspend payments under paragraph 
(2), and for each recommendation received by the executive agency in 
connection with such decision, shall be prepared and be retained in the 
files of the executive agency.
    ``(5) 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 paragraph 
(2), the contractor is afforded notice of the proposed reduction or 
suspension and an opportunity to submit matters to the executive agency 
in response to such proposed reduction or suspension.
    ``(6) Not later than 180 days after the date on which the head of 
an executive agency reduces or suspends payments to a contractor under 
paragraph (2), the remedy coordination official of the executive agency 
shall--
        ``(A) review the determination of fraud on which the reduction 
    or suspension is based; and
        ``(B) transmit a recommendation to the head of such executive 
    agency whether the suspension or reduction should continue.
    ``(7) The head of each executive agency who receives 
recommendations made by a remedy coordination official of the executive 
agency to reduce or suspend payments under paragraph (2) during a 
fiscal year shall prepare for such year a report that contains the 
recommendations, the actions taken on the recommendations and the 
reasons for such actions, and an assessment of the effects of such 
actions on the Federal Government. Any such report shall be available 
to any Member of Congress upon request.
    ``(8) The head of an executive agency may not delegate 
responsibilities under this subsection to any person in a position 
below level IV of the Executive Schedule.
    ``(9) In this subsection, the term `remedy coordination official', 
with respect to an executive agency, means the person 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.''.
    (f) Relationship to Prompt Payment Requirements.--The amendments 
made by this section are not intended to impair or modify procedures 
required by the provisions of chapter 39 of title 31, United States 
Code, and the regulations issued pursuant to such provisions of law (as 
such procedures are in effect on the date of the enactment of this 
Act), except that the Government may accept payment terms offered by a 
contractor offering a commercial item.

                    PART III--ACQUISITIONS GENERALLY

SEC. 2091. GOVERNMENT-WIDE APPLICATION OF PAYMENT PROTECTIONS FOR 
              SUBCONTRACTORS AND SUPPLIERS.

    Section 806 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 2301 note) is 
amended by striking out subsection (c) and inserting in lieu thereof 
the following:
    ``(c) Government-Wide Applicability.--The Federal Acquisition 
Regulatory Council (established by section 25(a) of the Office of 
Federal Procurement Policy Act) shall modify the Federal Acquisition 
Regulation (issued pursuant to section 25(c)(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 421(c)(1)) to apply 
Government-wide the requirements that the Secretary is required under 
subsection (a) to prescribe in regulations applicable with respect to 
the Department of Defense contracts.''.

                      Subtitle B--Cost Principles

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2101. ALLOWABLE CONTRACT COSTS.

    (a) Extension of Coverage to Coast Guard and NASA; Other 
Miscellaneous Amendments.--Section 2324 of title 10, United States 
Code, is amended as follows:
        (1) Subsection (a) is amended--
            (A) by inserting after ``(a)'' the following: ``Indirect 
        Cost That Violates a FAR Cost Principle.--'';
            (B) by striking out ``Secretary of Defense'' and inserting 
        in lieu thereof ``head of an agency'';
            (C) by striking out ``Department of Defense'' and inserting 
        in lieu thereof ``agency''; and
            (D) by striking out ``the Department of Defense 
        Supplement'' and inserting in lieu thereof ``applicable agency 
        supplement''.
        (2) Subsection (b) is amended--
            (A) by inserting after ``(b)'' the following: ``Penalty for 
        Violation of Cost Principle.--'';
            (B) in subparagraph (B) of paragraph (1) by striking out 
        ``regulations issued by the Secretary'' and inserting in lieu 
        thereof ``provisions in the Federal Acquisition Regulation''; 
        and
            (C) by striking out ``Secretary'' each place it appears and 
        inserting in lieu thereof ``head of the agency''.
        (3) Subsection (c) is amended--
            (A) by inserting after ``(c)'' the following: ``Waiver of 
        Penalty.--''; and
            (B) by striking out ``The Secretary shall prescribe 
        regulations providing'' in the first sentence and inserting in 
        lieu thereof ``The Federal Acquisition Regulation shall 
        provide''.
        (4) Subsection (d) is amended--
            (A) by inserting after ``(d)'' the following: 
        ``Applicability of Contract Disputes Procedure to Disallowance 
        of Cost and Assessment of Penalty.--''; and
            (B) by striking out ``the Secretary'' and inserting in lieu 
        thereof ``the head of an agency''.
        (5) Subsection (e) is amended--
            (A) by inserting after ``(e)'' the following: ``Specific 
        Costs Not Allowable.--'';
            (B) in subparagraph (D) of paragraph (1), by striking out 
        ``regulations of the Secretary of Defense'' and inserting in 
        lieu thereof ``provisions of the Federal Acquisition 
        Regulation'';
            (C) in subparagraph (M) of paragraph (1), by striking out 
        ``regulations prescribed by the Secretary of Defense'' and 
        inserting in lieu thereof ``the Federal Acquisition 
        Regulation'';
            (D) in subparagraph (A) of paragraph (2), by inserting ``of 
        Defense'' after ``Secretary'' the first place it occurs;
            (E) in subparagraph (C) of paragraph (2), by striking out 
        ``head of the agency'' in the first sentence and inserting in 
        lieu thereof ``Secretary of Defense'';
            (F) in subparagraph (A) of paragraph (3), by striking out 
        ``regulations prescribed by the Secretary'' and inserting in 
        lieu thereof ``the Federal Acquisition Regulation''; and
            (G) by amending paragraph (4) to read as follows:
    ``(4) The provisions of the Federal Acquisition Regulation 
implementing this section may establish appropriate definitions, 
exclusions, limitations, and qualifications.''.
        (6) Subsection (f) is amended--
            (A) in paragraph (1)--
                (i) by striking out ``(1)'' and all that follows 
            through ``The amendments'' and inserting in lieu thereof 
            the following: ``Required Regulations.--(1) The Federal 
            Acquisition Regulation shall contain provisions on the 
            allowability of contractor costs. Such provisions'', and
                (ii) by striking out ``These regulations'' and 
            inserting in lieu thereof ``The regulations''; and
            (B) in paragraphs (2), (3), and (4)--
                (i) by striking out ``defense'' before ``contract 
            auditor'' each place it appears, and
                (ii) by striking out ``regulation'' each place it 
            appears and inserting in lieu thereof ``Federal Acquisition 
            Regulation''.
        (7) Subsection (g) is amended to read as follows:
    ``(g) Applicability of Regulations to Subcontractors.--The 
regulations referred to in subsections (e) and (f)(1) shall require 
prime contractors of a covered contract, to the maximum extent 
practicable, to apply the provisions of such regulations to all 
subcontractors of the covered contract.''.
        (8) Subsection (h) is amended--
            (A) by inserting after ``(h)'' the following: ``Contractor 
        Certification Required.--'';
            (B) by striking out ``by the Secretary'' in paragraph (1) 
        and inserting in lieu thereof ``in the Federal Acquisition 
        Regulation''; and
            (C) by striking out ``Secretary of Defense'' in paragraph 
        (2) and inserting in lieu thereof ``head of the agency''.
        (9) Subsection (i) is amended by striking out ``The submission 
    to the Department of Defense'' and inserting in lieu thereof 
    ``Penalties for Submission of Cost Known as Not Allowable.--The 
    submission to an agency''.
        (10) Subsection (j) is amended--
            (A) by inserting after ``(j)'' the following: ``Contractor 
        To Have Burden of Proof.--''; and
            (B) by striking out ``United States Claims Court'' and 
        inserting in lieu thereof ``United States Court of Federal 
        Claims''.
        (11) Subsection (k) is amended--
            (A) by inserting after ``(k)'' the following: ``Proceeding 
        Costs Not Allowable.--'';
            (B) in paragraph (2), by striking out ``decision by the 
        Department of Defense--'' and inserting in lieu thereof 
        ``decision--''; and
            (C) in paragraph (4)--
                (i) by inserting after ``head of the agency'' the 
            following: ``or Secretary of the military department 
            concerned'',
                (ii) by striking out ``under regulations prescribed by 
            such agency head'' and inserting in lieu thereof ``in 
            accordance with the Federal Acquisition Regulation'',
                (iii) by inserting ``or Secretary'' after ``agency 
            head'', and
                (iv) by inserting before the period at the end the 
            following: ``or military department''.
    (b) Unallowability of Costs To Influence Local Legislative 
Bodies.--Subsection (e)(1)(B) of section 2324 of title 10, United 
States Code, is amended by striking out ``or a State legislature'' and 
inserting in lieu thereof ``, a State legislature, or a legislative 
body of a political subdivision of a State''.
    (c) Clarification of Cost Principles.--Subsection (f)(1) of such 
section is amended by adding at the end the following:
        ``(Q) Conventions.''.
    (d) Covered Contract Defined.--Such section is further amended by 
striking out subsections (l) and (m) and inserting in lieu thereof the 
following:
    ``(l) Definitions.--In this section:
        ``(1)(A) The term `covered contract' means a contract for an 
    amount in excess of $500,000 that is entered into by the head of an 
    agency, except that such term does not include a fixed-price 
    contract without cost incentives or any firm fixed-price contract 
    for the purchase of commercial items.
        ``(B) Effective on October 1 of each year that is divisible by 
    five, the amount set forth in subparagraph (A) shall be adjusted to 
    the equivalent amount in constant fiscal year 1994 dollars. An 
    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 is not evenly 
    divisible by $50,000, the amount shall be rounded to the next 
    higher multiple of $50,000.
        ``(2) The term `head of the agency' or `agency head' does not 
    include the Secretary of a military department.
        ``(3) The term `agency' means the Department of Defense, the 
    Coast Guard, and the National Aeronautics and Space 
    Administration.''.
    (e) Regulations.--The regulations of the Secretary of Defense 
implementing section 2324 of title 10, United States Code, shall remain 
in effect until the Federal Acquisition Regulation is revised to 
implement the amendments made by this section.

SEC. 2102. REPEAL OF AUTHORITY FOR CONTRACT PROFIT CONTROLS DURING 
              EMERGENCY PERIODS.

    (a) Repeal.--Section 2382 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by striking out the item relating 
to section 2382.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2151. ALLOWABLE CONTRACT COSTS.

    Section 306 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 256) is amended to read as follows:

``SEC. 306. ALLOWABLE COSTS.

    ``(a) Indirect Cost That Violates a FAR 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 such costs have been accrued and if that proposal includes the 
submission of a cost which is unallowable because the cost violates a 
cost principle in the Federal Acquisition Regulation (referred to in 
section 25(c)(1) of the Office of Federal Procurement Policy Act (41 
U.S.C. 421(c)(1)) or an executive agency supplement to the Federal 
Acquisition Regulation, the cost shall be disallowed.
    ``(b) Penalty for Violation of Cost Principle.--(1) 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 United States for 
    the use of any funds which a contractor has been paid in excess of 
    the amount to which the contractor was entitled.
    ``(2) 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 such contractor before the 
submission of such proposal, the executive agency shall assess a 
penalty against the contractor in an amount equal to two 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 to Disallowance 
of Cost and Assessment of Penalty.--An action of an executive agency 
under subsection (a) or (b)--
        ``(1) shall be considered a final decision for the purposes of 
    section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605); and
        ``(2) is appealable in the manner provided in section 7 of such 
    Act (41 U.S.C. 606).
    ``(e) Specific Costs Not Allowable.--(1) The following costs are 
not allowable under a covered contract:
        ``(A) Costs of entertainment, including amusement, diversion, 
    and social activities, and any costs directly associated with such 
    costs (such as tickets to shows or sports events, meals, lodging, 
    rentals, transportation, and gratuities).
        ``(B) 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.
        ``(C) Costs incurred in defense of any civil or criminal fraud 
    proceeding or similar proceeding (including filing of any false 
    certification) brought by the United States 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).
        ``(D) 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 such payments in accordance with applicable 
    provisions of the Federal Acquisition Regulation.
        ``(E) Costs of membership in any social, dining, or country 
    club or organization.
        ``(F) Costs of alcoholic beverages.
        ``(G) Contributions or donations, regardless of the recipient.
        ``(H) Costs of advertising designed to promote the contractor 
    or its products.
        ``(I) Costs of promotional items and memorabilia, including 
    models, gifts, and souvenirs.
        ``(J) Costs for travel by commercial aircraft which exceed the 
    amount of the standard commercial fare.
        ``(K) Costs incurred in making any payment (commonly known as a 
    `golden parachute payment') which is--
            ``(i) in an amount in excess of the normal severance pay 
        paid by the contractor to an employee upon termination of 
        employment; and
            ``(ii) is paid to the employee contingent upon, and 
        following, a change in management control over, or ownership 
        of, the contractor or a substantial portion of the contractor's 
        assets.
        ``(L) Costs of commercial insurance that protects against the 
    costs of the contractor for correction of the contractor's own 
    defects in materials or workmanship.
        ``(M) 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.
        ``(N) 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 United States facility in 
    that country at the request of the government of that country.
        ``(O) Costs incurred by a contractor in connection with any 
    criminal, civil, or administrative proceeding commenced by the 
    United States or a State, to the extent provided in subsection (k).
    ``(2)(A) 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 the provisions of 
paragraphs (1)(M) and (1)(N) to that contract if the executive agency 
determines that--
        ``(i) the application of such provisions to the 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;
        ``(ii) the contractor has taken (or has established plans to 
    take) appropriate actions within the contractor's control to 
    minimize the amount and number of incidents of the payment of 
    severance pay by the contractor to employees under the contract who 
    are foreign nationals; and
        ``(iii) the payment of severance pay is necessary in order 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.
    ``(B) An executive agency shall include in the solicitation for a 
covered contract a statement indicating--
        ``(i) that a waiver has been granted under subparagraph (A) for 
    the contract; or
        ``(ii) whether the executive agency will consider granting such 
    a waiver, and, if the executive agency will consider granting a 
    waiver, the criteria to be used in granting the waiver.
    ``(C) An executive agency shall make the final determination 
regarding whether to grant a waiver under subparagraph (A) with respect 
to a covered contract before award of the contract.
    ``(3) The provisions of the Federal Acquisition Regulation 
implementing this section may establish appropriate definitions, 
exclusions, limitations, and qualifications. Any submission by a 
contractor of costs which are incurred by the contractor and which 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 such 
costs have been accrued', as used in this section.
    ``(f) Required Regulations.--(1) The Federal Acquisition Regulation 
shall contain provisions on the allowability of contractor costs. Such 
provisions shall define in detail and in specific terms those costs 
which are unallowable, in whole or in part, under covered contracts. 
The regulations shall, at a minimum, clarify the cost principles 
applicable to contractor costs of the following:
        ``(A) Air shows.
        ``(B) Membership in civic, community, and professional 
    organizations.
        ``(C) Recruitment.
        ``(D) Employee morale and welfare.
        ``(E) 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).
        ``(F) Community relations.
        ``(G) Dining facilities.
        ``(H) Professional and consulting services, including legal 
    services.
        ``(I) Compensation.
        ``(J) Selling and marketing.
        ``(K) Travel.
        ``(L) Public relations.
        ``(M) Hotel and meal expenses.
        ``(N) Expense of corporate aircraft.
        ``(O) Company-furnished automobiles.
        ``(P) Advertising.
        ``(Q) Conventions.
    ``(2) The Federal Acquisition Regulation shall require that a 
contracting officer not resolve any questioned costs until the 
contracting officer has obtained--
        ``(A) adequate documentation with respect to such costs; and
        ``(B) the opinion of the contract auditor on the allowability 
    of such costs.
    ``(3) 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.
    ``(4) 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 
such a manner that the amount of the individual questioned costs that 
are paid will be reflected in the settlement.
    ``(g) Applicability of Regulations to Subcontractors.--The 
regulations referred to in subsections (e) and (f)(1) shall require 
prime contractors of a covered contract, to the maximum extent 
practicable, to apply the provisions of such regulations to all 
subcontractors of the covered contract.
    ``(h) Contractor Certification Required.--(1) 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. Any such certification 
shall be in a form prescribed in the Federal Acquisition Regulation.
    ``(2) An executive agency may, in an exceptional case, waive the 
requirement for certification under paragraph (1) in the case of any 
contract if the agency--
        ``(A) determines in such case that it would be in the interest 
    of the United States to waive such certification; and
        ``(B) states in writing the reasons for that determination and 
    makes such determination available to the public.
    ``(i) Penalties for Submission of Cost Known as Not Allowable.--The 
submission to an executive agency of a proposal for settlement of costs 
for any period after such costs have been accrued that includes a cost 
that is expressly specified by statute or regulation as being 
unallowable, with the knowledge that such cost is unallowable, shall be 
subject to the provisions of section 287 of title 18, United States 
Code, and section 3729 of title 31, United States Code.
    ``(j) Contractor To Have Burden of Proof.--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 United States 
is in issue, the burden of proof shall be upon the contractor to 
establish that those costs are reasonable.
    ``(k) Proceeding Costs Not Allowable.--(1) Except as otherwise 
provided in this subsection, costs incurred by a contractor in 
connection with any criminal, civil, or administrative proceeding 
commenced by the United States or a State are not allowable as 
reimbursable costs under a covered contract if the proceeding (A) 
relates to a violation of, or failure to comply with, a Federal or 
State statute or regulation, and (B) results in a disposition described 
in paragraph (2).
    ``(2) A disposition referred to in paragraph (1)(B) is any of the 
following:
        ``(A) In the case of 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 paragraph (1).
        ``(B) In the case of 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 paragraph (1).
        ``(C) In the case of any civil or administrative proceeding, 
    the imposition of a monetary penalty by reason of the violation or 
    failure referred to in paragraph (1).
        ``(D) A final decision--
            ``(i) to debar or suspend the contractor,
            ``(ii) to rescind or void the contract, or
            ``(iii) to terminate the contract for default,
    by reason of the violation or failure referred to in paragraph (1).
        ``(E) A disposition of the proceeding by consent or compromise 
    if such action could have resulted in a disposition described in 
    subparagraph (A), (B), (C), or (D).
    ``(3) In the case of a proceeding referred to in paragraph (1) that 
is commenced by the United States and is resolved by consent or 
compromise pursuant to an agreement entered into by a contractor and 
the United States, the costs incurred by the contractor in connection 
with such proceeding that are otherwise not allowable as reimbursable 
costs under such paragraph may be allowed to the extent specifically 
provided in such agreement.
    ``(4) In the case of a proceeding referred to in paragraph (1) 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 such 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 (A) 
a specific term or condition of the contract, or (B) specific written 
instructions of the executive agency.
    ``(5)(A) Except as provided in subparagraph (C), costs incurred by 
a contractor in connection with a criminal, civil, or administrative 
proceeding commenced by the United States or a State in connection with 
a covered contract may be allowed as reimbursable costs under the 
contract if such costs are not disallowable under paragraph (1), but 
only to the extent provided in subparagraph (B).
    ``(B)(i) The amount of the costs allowable under subparagraph (A) 
in any case may not exceed the amount equal to 80 percent of the amount 
of the costs incurred, to the extent that such costs are determined to 
be otherwise allowable and allocable under the Federal Acquisition 
Regulation.
    ``(ii) Regulations issued for the purpose of clause (i) 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 United States as a party, and such 
other factors as may be appropriate.
    ``(C) In the case of a proceeding referred to in subparagraph (A), 
contractor costs otherwise allowable as reimbursable costs under this 
paragraph are not allowable if (i) such proceeding involves the same 
contractor misconduct alleged as the basis of another criminal, civil, 
or administrative proceeding, and (ii) the costs of such other 
proceeding are not allowable under paragraph (1).
    ``(6) In this subsection:
        ``(A) The term `proceeding' includes an investigation.
        ``(B) The term `costs', with respect to a proceeding--
            ``(i) means all costs incurred by a contractor, whether 
        before or after the commencement of any such proceeding; and
            ``(ii) includes--
                ``(I) administrative and clerical expenses;
                ``(II) the cost of legal services, including legal 
            services performed by an employee of the contractor;
                ``(III) the cost of the services of accountants and 
            consultants retained by the contractor; and
                ``(IV) the pay of directors, officers, and employees of 
            the contractor for time devoted by such directors, 
            officers, and employees to such proceeding.
        ``(C) The term `penalty' does not include restitution, 
    reimbursement, or compensatory damages.
    ``(l) Covered Contract Defined.--(1) In this section, 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 such term does 
not include a fixed-price contract without cost incentives or any firm, 
fixed price contract for the purchase of commercial items.
    ``(2) Effective on October 1 of each year that is divisible by 
five, the amount set forth in paragraph (1) shall be adjusted to the 
equivalent amount in constant fiscal year 1994 dollars. An 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 is not evenly divisible by $50,000, the 
amount shall be rounded to the next higher multiple of $50,000.''.

                    PART III--ACQUISITIONS GENERALLY

SEC. 2191. TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS.

    Section 24 of the Office of Federal Procurement Policy Act (41 
U.S.C. 420) is repealed.

SEC. 2192. REVISION OF COST PRINCIPLE RELATING TO ENTERTAINMENT, GIFT, 
              AND RECREATION COSTS FOR CONTRACTOR EMPLOYEES.

    (a) Costs Not Allowable.--(1) The costs of gifts or recreation for 
employees of a contractor or members of their families that are 
provided by the contractor to improve employee morale or performance or 
for any other purpose are not allowable under a covered contract 
unless, within 120 days after the date of the enactment of this Act, 
the Federal Acquisition Regulatory Council prescribes amendments to the 
Federal Acquisition Regulation specifying circumstances under which 
such costs are allowable under a covered contract.
    (2) Not later than 90 days after the date of the enactment of this 
Act, the Federal Acquisition Regulatory Council shall amend the cost 
principle in the Federal Acquisition Regulation that is set out in 
section 31.205-14 of title 48, Code of Federal Regulations, relating to 
unallowability of entertainment costs--
        (A) by inserting in the cost principle a statement that costs 
    made specifically unallowable under that cost principle are not 
    allowable under any other cost principle; and
        (B) by striking out ``(but see 31.205-1 and 31.205-13)''.
    (b) Definitions.--In this section:
        (1) The term ``employee'' includes officers and directors of a 
    contractor.
        (2) The term ``covered contract'' has the meaning given such 
    term in section 2324(l) of title 10, United States Code (as amended 
    by section 2101(c)), and section 306(l) of the Federal Property and 
    Administrative Services Act of 1949 (as added by section 2151).
    (c) Effective Date.--Any amendments to the Federal Acquisition 
Regulation made pursuant to subsection (a) shall apply with respect to 
costs incurred after the date on which the amendments made by section 
2101 apply (as provided in section 10001) or the date on which the 
amendments made by section 2151 apply (as provided in section 10001), 
whichever is later.

                Subtitle C--Audit and Access to Records

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2201. CONSOLIDATION AND REVISION OF AUTHORITY TO EXAMINE RECORDS 
              OF CONTRACTORS.

    (a) Authority.--(1) Section 2313 of title 10, United States Code, 
is amended to read as follows:

``Sec. 2313. Examination of records of contractor

    ``(a) Agency Authority.--(1) The head of an agency, acting through 
an authorized representative, is authorized to 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 such contracts, made by that agency under 
    this chapter; and
        ``(B) a subcontractor performing any cost-reimbursement, 
    incentive, time-and-materials, labor-hour, or price-redeterminable 
    subcontract or any combination of such subcontracts under a 
    contract referred to in subparagraph (A).
    ``(2) The head of an agency, acting through an authorized 
representative, is authorized, for the purpose of evaluating the 
accuracy, completeness, and currency of certified cost or pricing data 
required to be submitted pursuant to section 2306a of this title with 
respect to a contract or subcontract, to examine all records of the 
contractor or subcontractor related to--
        ``(A) the proposal for the contract or subcontract;
        ``(B) the discussions conducted on the proposal;
        ``(C) pricing of the contract or subcontract; or
        ``(D) performance of the contract or subcontract.
    ``(b) DCAA Subpoena Authority.--(1) The Director of the Defense 
Contract Audit Agency (or any successor agency) may require by subpoena 
the production of any records of a contractor that the Secretary of 
Defense is authorized to audit or examine under subsection (a).
    ``(2) Any such subpoena, in the case of contumacy or refusal to 
obey, shall be enforceable by order of an appropriate United States 
district court.
    ``(3) The authority provided by paragraph (1) may not be 
redelegated.
    ``(4) The Director (or any successor official) shall submit an 
annual report to the Secretary of Defense on the exercise of such 
authority during the preceding year and the reasons why such authority 
was exercised in any instance. The Secretary shall forward a copy of 
each such report to the Committees on Armed Services of the Senate and 
House of Representatives.
    ``(c) Comptroller General Authority.--(1) Except as provided in 
paragraph (2), each contract awarded after using procedures other than 
sealed bid procedures shall provide that the Comptroller General and 
his representatives are authorized to examine any records of the 
contractor, or any of its subcontractors, that directly pertain to, and 
involve transactions relating to, the contract or subcontract.
    ``(2) Paragraph (1) does not apply to a contract or subcontract 
with a foreign contractor or foreign subcontractor if the head of the 
agency concerned determines, with the concurrence of the Comptroller 
General or his designee, that the application of that paragraph to the 
contract or subcontract would not be in the public interest. However, 
the concurrence of the Comptroller General or his designee is not 
required--
        ``(A) where the contractor or subcontractor is a foreign 
    government or agency thereof or is precluded by the laws of the 
    country involved from making its records available for examination; 
    and
        ``(B) where the head of the 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) Paragraph (1) may not be construed to require a contractor or 
subcontractor to create or maintain any record that the contractor or 
subcontractor does not maintain in the ordinary course of business or 
pursuant to another provision of law.
    ``(d) Limitation on Preaward Audits Relating to Indirect Costs.--
The head of an agency may not perform a preaward audit to evaluate 
proposed indirect costs under any contract, subcontract, or 
modification to be entered into in accordance with this chapter in any 
case in which the contracting officer determines that the objectives of 
the audit can reasonably be met by accepting the results of an audit 
conducted by any other department or agency of the Federal Government 
within one year preceding the date of the contracting officer's 
determination.
    ``(e) Limitation.--The authority of the head of an agency under 
subsection (a), and the authority of the Comptroller General under 
subsection (c), with respect to a contract or subcontract shall expire 
three years after final payment under such contract or subcontract.
    ``(f) 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.
    ``(g) Forms of Original Record Storage.--Nothing in this section 
shall be construed to preclude a contractor from duplicating or storing 
original records in electronic form.
    ``(h) Use of Images of Original Records.--The head of an 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) The contractor or subcontractor has established 
    procedures to ensure that the imaging process preserves the 
    integrity, reliability, and security of the original records.
        ``(2) The contractor or subcontractor maintains an effective 
    indexing system to permit timely and convenient access to the 
    imaged records.
        ``(3) The contractor or subcontractor retains the original 
    records for a minimum of one year after imaging to permit periodic 
    validation of the imaging systems.
    ``(i) Records Defined.--In this section, the term `records' 
includes books, documents, accounting procedures and practices, and 
other data, regardless of type and regardless of whether such items are 
in written form, in the form of computer data, or in any other form.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 137 of title 10, United States Code, is 
amended to read as follows:
``2313. Examination of records of contractor.''.

    (b) Repeal of Superseded Provision.--(1) Section 2406 of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 141 of such 
title is amended by striking out the item relating to section 2406.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2251. AUTHORITY TO EXAMINE RECORDS OF CONTRACTORS.

    (a) Authority.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended 
by sections 1072 and 1251(a), is further amended by inserting after 
section 304B the following new section:

``SEC. 304C. EXAMINATION OF RECORDS OF CONTRACTOR.

    ``(a) Agency Authority.--(1) The head of an executive agency, 
acting through an authorized representative, is authorized to 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 such contracts, made by that executive agency 
    under this title; and
        ``(B) a subcontractor performing any cost-reimbursement, 
    incentive, time-and-materials, labor-hour, or price-redeterminable 
    subcontract or any combination of such subcontracts under a 
    contract referred to in subparagraph (A).
    ``(2) The head of an executive agency, acting through an authorized 
representative, is authorized, for the purpose of evaluating the 
accuracy, completeness, and currency of certified cost or pricing data 
required to be submitted pursuant to section 304B with respect to a 
contract or subcontract, to examine all records of the contractor or 
subcontractor related to--
        ``(A) the proposal for the contract or subcontract;
        ``(B) the discussions conducted on the proposal;
        ``(C) pricing of the contract or subcontract; or
        ``(D) performance of the contract or subcontract.
    ``(b) Subpoena Power.--(1) 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, upon 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 (a).
    ``(2) Any such subpoena, in the case of contumacy or refusal to 
obey, shall be enforceable by order of an appropriate United States 
district court.
    ``(3) The authority provided by paragraph (1) may not be delegated.
    ``(4) 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 Governmental Affairs 
of the Senate and the Committee on Government Operations of the House 
of Representatives a report on the exercise of such authority during 
such preceding year and the reasons why such authority was exercised in 
any instance.
    ``(c) Comptroller General Authority.--(1) Except as provided in 
paragraph (2), each contract awarded after using procedures other than 
sealed bid procedures shall provide that the Comptroller General and 
his representatives are authorized to examine any records of the 
contractor, or any of its subcontractors, that directly pertain to, and 
involve transactions relating to, the contract or subcontract.
    ``(2) 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 his designee, that the application of that paragraph to the 
contract or subcontract would not be in the public interest. However, 
the concurrence of the Comptroller General or his designee is not 
required--
        ``(A) where the contractor or subcontractor is a foreign 
    government or agency thereof or is precluded by the laws of the 
    country involved from making its records available for examination; 
    and
        ``(B) where 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) Paragraph (1) may not be construed to require a contractor or 
subcontractor to create or maintain any record that the contractor or 
subcontractor does not maintain in the ordinary course of business or 
pursuant to another provision of law.
    ``(d) Limitation on Preaward Audits Relating to Indirect Costs.--An 
executive agency may not perform a preaward audit to evaluate proposed 
indirect costs under any contract, subcontract, or modification to be 
entered into in accordance with this title in any case in which the 
contracting officer determines that the objectives of the audit can 
reasonably be met by accepting the results of an audit conducted by any 
other department or agency of the Federal Government within one year 
preceding the date of the contracting officer's determination.
    ``(e) Limitation.--The authority of an executive agency under 
subsection (a), and the authority of the Comptroller General under 
subsection (c), with respect to a contract or subcontract shall expire 
three years after final payment under such contract or subcontract.
    ``(f) 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.
    ``(g) Form of Original Record Storage.--Nothing in this section 
shall be construed to preclude a contractor from duplicating or storing 
original records in electronic form.
    ``(h) Use of Images of Original Records.--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) The contractor or subcontractor has established 
    procedures to ensure that the imaging process preserves the 
    integrity, reliability, and security of the original records.
        ``(2) The contractor or subcontractor maintains an effective 
    indexing system to permit timely and convenient access to the 
    imaged records.
        ``(3) The contractor or subcontractor retains the original 
    records for a minimum of one year after imaging to permit periodic 
    validation of the imaging systems.
    ``(i) Records Defined.--In this section, the term `records' 
includes books, documents, accounting procedures and practices, and 
other data, regardless of type and regardless of whether such items are 
in written form, in the form of computer data, or in any other form.''.
    (b) Repeal of Superseded Provision.--Section 304 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254) is 
amended by striking out subsection (c).

                    Subtitle D--Claims and Disputes

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2301. CERTIFICATION OF CONTRACT CLAIMS.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2409a the following new section 
2410:

``Sec. 2410. Requests for equitable adjustment or other relief: 
            certification

    ``(a) Certification Requirement.--A request for equitable 
adjustment to contract terms or request for relief under Public Law 85-
804 (50 U.S.C. 1431 et seq.) that exceeds the simplified acquisition 
threshold may not be paid unless a person authorized to certify the 
request on behalf of the contractor certifies, at the time the request 
is submitted, that--
        ``(1) the request is made in good faith, and
        ``(2) the supporting data are accurate and complete to the best 
    of that person's knowledge and belief.
    ``(b) Restriction on Legislative Payment of Claims.--In the case of 
a contract of an agency named in section 2303(a) of this title, no 
provision of a law enacted after September 30, 1994, that directs the 
payment of a particular claim under such contract, a particular request 
for equitable adjustment to any term of such contract, or a particular 
request for relief under Public Law 85-804 (50 U.S.C. 1431 et seq.) 
regarding such contract may be implemented unless such provision of 
law--
        ``(1) specifically refers to this subsection; and
        ``(2) specifically states that this subsection does not apply 
    with respect to the payment directed by that provision of law.
    ``(c) Definition.--In this section, the term `simplified 
acquisition threshold' has the meaning given that term in section 4(11) 
of the Office of Federal Procurement Policy Act.''.
    (b) Repeal of Related Provision.--Section 2410e of title 10, United 
States Code, is repealed.
    (c) Clerical amendments.--The table of sections at the beginning of 
chapter 141 of such title is amended--
        (A) by striking out the items relating to sections 2410 and 
    2410e; and
        (B) by inserting after the item relating to section 2409a the 
    following:
``2410. Requests for equitable adjustment or other relief: 
          certification.''.

SEC. 2302. SHIPBUILDING CLAIMS.

    (a) Increase in Time Period During Which Adjustments to 
Shipbuilding Claims May Be Made.--Section 2405 of title 10, United 
States Code, is amended in subsection (a)--
        (1) by striking out ``entered into after December 7, 1983,''; 
    and
        (2) by striking out ``occurring more than 18 months before the 
    submission of the claim, request, or demand.'' and inserting in 
    lieu thereof the following: ``that--
        ``(1) in the case of a contract entered into after December 7, 
    1983, and before the date of the enactment of the Federal 
    Acquisition Streamlining Act of 1994, occurred more than 18 months 
    before the submission of the claim, request, or demand; and
        ``(2) in the case of a contract entered into on or after the 
    date of the enactment of the Federal Acquisition Streamlining Act 
    of 1994, occurred more than 6 years before the submission of the 
    claim, request, or demand.''.
    (b) Resubmission With Corrected Certification.--Subsection (c) of 
such section is amended by adding at the end the following:
    ``(4) This subsection applies only with respect to a claim, 
request, or demand submitted before the effective date of this 
paragraph.''.
    (c) Applicability.--Paragraphs (1) and (2) of section 2405(a) of 
title 10, United States Code, as added by subsection (a)(2), shall 
apply according to the provisions thereof on and after the date of the 
enactment of this Act, notwithstanding section 10001(b).

                    PART II--ACQUISITIONS GENERALLY

SEC. 2351. CONTRACT DISPUTES ACT IMPROVEMENTS.

    (a) Period for Filing Claims.--Section 6 of the Contract Disputes 
Act of 1978 (41 U.S.C. 605) is amended in subsection (a) by inserting 
after the second sentence the following: ``Each claim by a contractor 
against the government relating to a contract and each claim by the 
government against a contractor relating to a contract shall be 
submitted within 6 years after the accrual of the claim. The preceding 
sentence does not apply to a claim by the government against a 
contractor that is based on a claim by the contractor involving 
fraud.''.
    (2) Notwithstanding the third sentence of section 6(a) of the 
Contract Disputes Act of 1978, as added by paragraph (1), if a contract 
in existence on the date of the enactment of this Act requires that a 
claim referred to in that sentence be submitted earlier than 6 years 
after the accrual of the claim, then the claim shall be submitted 
within the period required by the contract. The preceding sentence does 
not apply to a claim by the Federal Government against a contractor 
that is based on a claim by the contractor involving fraud.
    (b) Increased Threshold for Certification, Decision, and 
Notification Requirements.--Subsection (c) of such section is amended 
by striking out ``$50,000'' each place it appears and inserting in lieu 
thereof ``$100,000''.
    (c) Increased Maximum for Applicability of Accelerated 
Procedures.--Section 8(f) of the Contract Disputes Act of 1978 (41 
U.S.C. 607(f)) is amended by striking out ``$50,000'' in the first 
sentence and inserting in lieu thereof ``$100,000''.
    (d) Increased Maximum for Applicability of Small Claims 
Procedure.--Section 9(a) of the Contract Disputes Act of 1978 (41 
U.S.C. 608(a)) is amended by striking out ``$10,000'' in the first 
sentence and inserting in lieu thereof ``$50,000''.
    (e) Requests for Issuance of Decisions.--Paragraph (4) of section 
6(c) of the Contract Disputes Act of 1978 (41 U.S.C. 605(c)) is 
amended--
        (1) by striking out ``agency board of contract appeals'' and 
    inserting in lieu thereof ``tribunal concerned''; and
        (2) by striking out ``board,'' and inserting in lieu thereof 
    ``tribunal concerned,''.

SEC. 2352. EXTENSION OF ALTERNATIVE DISPUTE RESOLUTION AUTHORITY.

    (a) Extension of Authority.--Section 6(e) of the Contracts Disputes 
Act of 1978 (41 U.S.C. 605(e)) is amended by striking out ``October 1, 
1995'' and inserting in lieu thereof ``October 1, 1999''.
    (b) Availability of Procedures to Small Business Government 
Contractors.--Section 6(e) of such Act is amended by inserting after 
the first sentence the following: ``In any case in which the 
contracting officer rejects a contractor's request for alternative 
dispute resolution proceedings, the contracting officer shall provide 
the contractor with a written explanation, citing one or more of the 
conditions in section 572(b) of title 5, United States Code, or such 
other specific reasons that alternative dispute resolution procedures 
are inappropriate for the resolution of the dispute. In any case in 
which a contractor rejects a request of an agency for alternative 
dispute resolution proceedings, the contractor shall inform the agency 
in writing of the contractor's specific reasons for rejecting the 
request.''.

SEC. 2353. EXPEDITED RESOLUTION OF CONTRACT ADMINISTRATION MATTERS.

    (a) Regulations Required.--(1) The Federal Acquisition Regulation 
shall include provisions that require a contracting officer--
        (A) to make every reasonable effort to respond in writing 
    within 30 days to any written request made to a contracting officer 
    with respect to a matter relating to the administration of a 
    contract that is received from a small business concern; and
        (B) in the event that the contracting officer is unable to 
    reply within the 30-day period, to transmit to the contractor 
    within such period a written notification of a specific date by 
    which the contracting officer expects to respond.
    (2) The provisions shall not apply to a request for a contracting 
officer's decision under the Contract Disputes Act of 1978 (41 U.S.C. 
601 et seq.).
    (b) Rule of Construction.--Nothing in this section shall be 
considered as creating any rights under the Contract Disputes Act of 
1978 (41 U.S.C. 601 et seq.).
    (c) Definition.--In this section, the term ``small business 
concern'' means a business concern that meets the requirements of 
section 3(a) of the Small Business Act (15 U.S.C. 632(a)) and the 
regulations promulgated pursuant to that section.

SEC. 2354. AUTHORITY FOR DISTRICT COURTS TO OBTAIN ADVISORY OPINIONS 
              FROM BOARDS OF CONTRACT APPEALS IN CERTAIN CASES.

    Section 10 of the Contract Disputes Act of 1978 (41 U.S.C. 609) is 
amended by adding at the end the following new paragraph:
    ``(f)(1) 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 a board of contract appeals to provide the 
court with an advisory opinion on the matters of contract 
interpretation at issue.
    ``(2) 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 Act.
    ``(3) A district court shall direct any request under paragraph (1) 
to the board of contract appeals having jurisdiction under this Act to 
adjudicate appeals of contract claims under the contract or contracts 
being interpreted by the court.
    ``(4) After receiving a request for an advisory opinion under 
paragraph (1), a board of contract appeals shall provide the advisory 
opinion in a timely manner to the district court making the request.''.

                       Subtitle E--Miscellaneous

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2401. CLARIFICATION OF PROVISION RELATING TO QUALITY CONTROL OF 
              CERTAIN SPARE PARTS.

    The second sentence of subsection (a) of section 2383 of title 10, 
United States Code, is amended to read as follows: ``In establishing 
the appropriate qualification requirements, the Secretary of Defense 
shall use the Department of Defense qualification requirements that 
were used to qualify the original production part unless the Secretary 
determines in writing--
        ``(1) that there are other requirements sufficiently similar to 
    those requirements that should be used instead; or
        ``(2) that any or all such requirements are unnecessary.''.

SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.

    (a) Repeal of Requirement for Report on Waivers.--Subsection (e) of 
section 2403 of title 10, United States Code, is amended--
        (1) by striking out ``(1)''; and
        (2) by striking out paragraph (2).
    (b) Provisions To Be Addressed by Regulations.--Subsection (h) of 
such section is amended--
        (1) by redesignating paragraph (2) as paragraph (3); and
        (2) by inserting after paragraph (1) the following new 
    paragraph (2):
    ``(2) The regulations shall include the following:
        ``(A) Guidelines for negotiating contractor guarantees that are 
    reasonable and cost effective, as determined on the basis of the 
    likelihood of defects and the estimated cost of correcting such 
    defects.
        ``(B) Procedures for administering contractor guarantees.
        ``(C) Guidelines for determining the cases in which it may be 
    appropriate to waive the requirements of this section.''.

                    PART II--ACQUISITIONS GENERALLY

SEC. 2451. SECTION 3737 OF THE REVISED STATUTES: EXPANSION OF AUTHORITY 
              TO PROHIBIT SETOFFS AGAINST ASSIGNEES; REORGANIZATION OF 
              SECTION; REVISION OF OBSOLETE PROVISIONS.

    Section 3737 of the Revised Statutes (41 U.S.C. 15) is amended to 
read as follows:
    ``Sec. 3737. (a) No contract or order, or any interest therein, 
shall be transferred by the party to whom such contract or order is 
given to any other party, and any such transfer shall cause the 
annulment of the contract or order transferred, so far as the United 
States is concerned. All rights of action, however, for any breach of 
such contract by the contracting parties, are reserved to the United 
States.
    ``(b) The provisions of subsection (a) shall not apply in any case 
in which the moneys due or to become due from the United States or from 
any agency or department thereof, under a contract providing for 
payments aggregating $1,000 or more, are assigned to a bank, trust 
company, or other financing institution, including any Federal lending 
agency, provided:
        ``(1) That, in the case of any contract entered into after 
    October 9, 1940, no claim shall be assigned if it arises under a 
    contract which forbids such assignment.
        ``(2) That, unless otherwise expressly permitted by such 
    contract, any such assignment shall cover all amounts payable under 
    such contract and not already paid, shall not be made to more than 
    one party, and shall not be subject to further assignment, except 
    that any such assignment may be made to one party as agent or 
    trustee for two or more parties participating in such financing.
        ``(3) That, in the event of any such assignment, the assignee 
    thereof shall file written notice of the assignment together with a 
    true copy of the instrument of the assignment with--
            ``(A) the contracting officer or the head of his department 
        or agency;
            ``(B) the surety or sureties upon the bond or bonds, if 
        any, in connection with such contract; and
            ``(C) the disbursing officer, if any, designated in such 
        contract to make payment.
    ``(c) Notwithstanding any law to the contrary governing the 
validity of assignments, any assignment pursuant to this section shall 
constitute a valid assignment for all purposes.
    ``(d) In any case in which moneys due or to become due under any 
contract are or have been assigned pursuant to this section, no 
liability of any nature of the assignor to the United States or any 
department or agency thereof, whether arising from or independently of 
such contract, shall create or impose any liability on the part of the 
assignee to make restitution, refund, or repayment to the United States 
of any amount heretofore since July 1, 1950, or hereafter received 
under the assignment.
    ``(e) Any contract of the Department of Defense, the General 
Services Administration, the Department of Energy, or any other 
department or agency of the United States designated by the President, 
except any such contract under which full payment has been made, may, 
upon a determination of need by the President, provide or be amended 
without consideration to provide that payments to be made to the 
assignee of any moneys due or to become due under such contract shall 
not be subject to reduction or setoff. Each such determination of need 
shall be published in the Federal Register.
    ``(f) If a provision described in subsection (e) or a provision to 
the same general effect has been at any time heretofore or is hereafter 
included or inserted in any such contract, payments to be made 
thereafter to an assignee of any moneys due or to become due under such 
contract shall not be subject to reduction or setoff for any liability 
of any nature of the assignor to the United States or any department or 
agency thereof which arises independently of such contract, or 
hereafter for any liability of the assignor on account of--
        ``(1) renegotiation under any renegotiation statute or under 
    any statutory renegotiation article in the contract;
        ``(2) fines;
        ``(3) penalties (which term does not include amounts which may 
    be collected or withheld from the assignor in accordance with or 
    for failure to comply with the terms of the contract); or
        ``(4) taxes, social security contributions, or the withholding 
    or non withholding of taxes or social security contributions, 
    whether arising from or independently of such contract.
    ``(g) Except as herein otherwise provided, nothing in this section 
shall be deemed to affect or impair rights of obligations heretofore 
accrued.''.

SEC. 2452. REPEAL OF REQUIREMENT FOR DEPOSIT OF CONTRACTS WITH GAO.

    Section 3743 of the Revised Statutes (41 U.S.C. 20) is repealed.

SEC. 2453. REPEAL OF OBSOLETE DEADLINE REGARDING PROCEDURAL REGULATIONS 
              FOR THE COST ACCOUNTING STANDARDS BOARD.

    Section 26(f)(3) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 422(f)(3)) is amended in the first sentence by striking out 
``Not later than 180 days after the date of the enactment of this 
section, the Administrator'' and inserting in lieu thereof ``The 
Administrator''.

SEC. 2454. CODIFICATION OF ACCOUNTING REQUIREMENT FOR CONTRACTED 
              ADVISORY AND ASSISTANCE SERVICES.

    (a) Funding To Be Identified in Budget.--Section 1105 of title 31, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(g)(1) The Director of the Office of Management and Budget shall 
establish the funding for advisory and assistance services for each 
department and agency as a separate object class in each budget 
annually submitted to the Congress under this section.
    ``(2)(A) In paragraph (1), except as provided in subparagraph (B), 
the term `advisory and assistance services' means the following 
services when provided by nongovernmental sources:
        ``(i) Management and professional support services.
        ``(ii) Studies, analyses, and evaluations.
        ``(iii) Engineering and technical services.
    ``(B) In paragraph (1), the term `advisory and assistance services' 
does not include the following services:
        ``(i) Routine automated data processing and telecommunications 
    services unless such services are an integral part of a contract 
    for the procurement of advisory and assistance services.
        ``(ii) Architectural and engineering services, as defined in 
    section 901 of the Brooks Architect-Engineers Act (40 U.S.C. 541).
        ``(iii) Research on basic mathematics or medical, biological, 
    physical, social, psychological, or other phenomena.''.
    (b) Repeal of Source Law.--Section 512 of Public Law 102-394 (106 
Stat. 1826) is repealed.
    (c) Repeal of Superseded Provisions.--(1) Section 2212 of title 10, 
United States Code, is repealed.
    (2) Section 1114 of title 31, United States Code, is repealed.
    (3)(A) The table of sections at the beginning of chapter 131 of 
title 10, United States Code, is amended by striking out the item 
relating to section 2212.
    (B) The table of sections at the beginning of chapter 11 of title 
31, United States Code, is amended by striking out the item relating to 
section 1114.

SEC. 2455. UNIFORM SUSPENSION AND DEBARMENT.

    (a) Requirement for Regulations.--Regulations shall be issued 
providing that provisions for the debarment, suspension, or other 
exclusion of a participant in a procurement activity under the Federal 
Acquisition Regulation, or in a nonprocurement activity under 
regulations issued pursuant to Executive Order No. 12549, shall have 
government-wide effect. No agency shall allow a party to participate in 
any procurement or nonprocurement activity if any agency has debarred, 
suspended, or otherwise excluded (to the extent specified in the 
exclusion agreement) that party from participation in a procurement or 
nonprocurement activity.
    (b) Authority To Grant Exception.--The regulations issued pursuant 
to subsection (a) shall provide that an agency may grant an exception 
permitting a debarred, suspended, or otherwise excluded party to 
participate in procurement activities of that agency to the extent 
exceptions are authorized under the Federal Acquisition Regulation, or 
to participate in nonprocurement activities of that agency to the 
extent exceptions are authorized under regulations issued pursuant to 
Executive Order No. 12549.
    (c) Definitions.--In this section:
        (1) The term ``procurement activities'' means all acquisition 
    programs and activities of the Federal Government, as defined in 
    the Federal Acquisition Regulation.
        (2) The term ``nonprocurement activities'' means all programs 
    and activities involving Federal financial and nonfinancial 
    assistance and benefits, as covered by Executive Order No. 12549 
    and the Office of Management and Budget guidelines implementing 
    that order.
        (3) The term ``agency'' means an Executive agency as defined in 
    section 103 of title 5, United States Code.

         TITLE III--SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES
                   Subtitle A--Major Systems Statutes

SEC. 3001. WEAPON DEVELOPMENT AND PROCUREMENT SCHEDULES.

    (a) Deadline and Purpose.--Subsection (a) of section 2431 of title 
10, United States Code, is amended--
        (1) in the first sentence--
            (A) by striking out ``at the same time'' and inserting in 
        lieu thereof ``not later than 45 days after''; and
            (B) by striking out ``a written report'' and inserting in 
        lieu thereof ``budget justification documents''; and
        (2) in the second and third sentences, by striking out 
    ``report'' and inserting in lieu thereof ``documents''.
    (b) Additional Matters To Be Included.--Subsection (b) of such 
section is amended--
        (1) by striking out ``include--'' and inserting in lieu thereof 
    ``include each of the following:'';
        (2) by capitalizing the first letter of the first word in each 
    of paragraphs (1), (2), and (3);
        (3) by striking out the semicolon at the end of paragraphs (1) 
    and (2) and inserting in lieu thereof a period;
        (4) by striking out ``; and'' at the end of paragraph (3) and 
    inserting in lieu thereof a period; and
        (5) by amending paragraph (4) to read as follows:
        ``(4)(A) The most efficient production rate, the most efficient 
    acquisition rate, and the minimum sustaining rate, consistent with 
    the program priority established for such weapon system by the 
    Secretary concerned.
        ``(B) In this paragraph:
            ``(i) The term `most efficient production rate' means the 
        maximum rate for each budget year at which the weapon system 
        can be produced with existing or planned plant capacity and 
        tooling, with one shift a day running for eight hours a day and 
        five days a week.
            ``(ii) The term `minimum sustaining rate' means the 
        production rate for each budget year that is necessary to keep 
        production lines open while maintaining a base of responsive 
        vendors and suppliers.''.

SEC. 3002. SELECTED ACQUISITION REPORT REQUIREMENT.

    (a) Definition of Procurement Unit Cost.--(1) Paragraph (2) of 
section 2432(a) of title 10, United States Code, is amended--
        (A) in clause (A), by striking out ``for a fiscal year'' and 
    all that follows through ``such program in such fiscal year'';
        (B) in clause (B), by striking out ``with such funds during 
    such fiscal year.'' and inserting in lieu thereof a period; and
        (C) by striking out the last sentence.
    (2) Section 2433 of such title is amended--
        (A) in subparagraph (B) of subsection (c)(1), by striking out 
    ``current'' before ``procurement unit cost'';
        (B) in subsection (d), by striking out ``current'' before 
    ``procurement unit cost'' each place it appears; and
        (C) in subsection (e), by striking out ``current'' before 
    ``procurement unit cost'' both places it appears.
    (b) Exclusion of Firm, Fixed-Price Contracts.--Subsection (a) of 
section 2432 of such title is amended in paragraph (3) by inserting 
before the period at the end the following: ``and that is not a firm, 
fixed price contract''.
    (c) Definition of Full Life-Cycle Cost.--Such subsection is further 
amended in paragraph (4) by striking out ``has the meaning'' and all 
that follows through the end of the paragraph and inserting in lieu 
thereof the following: ``means all costs of development, procurement, 
military construction, and operations and support, without regard to 
funding source or management control.''.
    (d) Notice of Proposed Changes in SAR.--Subsection (c) of such 
section is amended in paragraph (2) by striking out the second sentence 
and inserting in lieu thereof the following: ``Whenever the Secretary 
of Defense proposes to make changes in the content of a Selected 
Acquisition Report, the Secretary shall submit a notice of the proposed 
changes to such committees. The changes shall be considered approved by 
the Secretary, and may be incorporated into the report, only after the 
end of the 60-day period beginning on the date on which the notice is 
received by those committees.''.
    (e) Elimination of Certain SAR Requirements.--Such subsection is 
further amended in paragraph (3) by striking out subparagraph (C).
    (f) Uniform Implementation of Life-Cycle Cost Analysis.--Such 
subsection is further amended--
        (1) by striking out paragraph (5); and
        (2) by adding at the end of subparagraph (A) of paragraph (3) 
    the following: ``The Secretary of Defense shall ensure that this 
    subparagraph is implemented in a uniform manner, to the extent 
    practicable, throughout the Department of Defense.''.
    (g) Elimination of Preliminary Report.--Subsection (f) of such 
section is amended by striking out the second sentence.
    (h) Terminology Corrections.--Such section is further amended as 
follows:
        (1) Subsection (b)(3)(A) is amended by striking out ``full 
    scale development or'' in clause (i).
        (2) Subsection (c)(3) is amended by striking out ``full-scale 
    engineering'' in subparagraph (A) and inserting in lieu thereof 
    ``engineering and manufacturing''.
        (3) Subsection (h)(1) is amended by striking out ``full-scale 
    engineering'' both places it appears and inserting in lieu thereof 
    ``engineering and manufacturing''.

SEC. 3003. UNIT COST REPORT REQUIREMENT.

    (a) Revision of Baseline Report Definitions.--(1) Section 2433(a) 
of title 10, United States Code, is amended--
        (A) in paragraph (2)--
            (i) by striking out ``Baseline Selected Acquisition 
        Report'' and inserting in lieu thereof ``Baseline Estimate''; 
        and
            (ii) by striking out ``Selected Acquisition Report in 
        which'' and all that follows through the end of the paragraph 
        and inserting in lieu thereof ``cost estimate included in the 
        baseline description for the program under section 2435 of this 
        title.''; and
        (B) by striking out paragraph (4).
    (2) Section 2433 of such title is further amended--
        (A) in subsection (c)(1), by striking out ``Baseline Report'' 
    in subparagraphs (A) and (B) and inserting in lieu thereof 
    ``Baseline Estimate''; and
        (B) in subsection (d), by striking out ``Baseline Report'' in 
    paragraphs (1) and (2) and inserting in lieu thereof ``Baseline 
    Estimate''.
    (b) Contents of Unit Cost Report.--Section 2433(b) of such title is 
amended in paragraph (3) by striking out ``Baseline Report was 
submitted.'' and inserting in lieu thereof ``contract was entered 
into.''.
    (c) Elimination of Certain Unit Cost Report Requirement.--Section 
2433(c) of such title, as amended by subsection (a), is further 
amended--
        (1) by striking out paragraph (2);
        (2) by striking out ``(1)'' after ``(c)''; and
        (3) by redesignating subparagraphs (A), (B), and (C) as 
    paragraphs (1), (2), and (3), respectively.
    (d) Constant Base Year Dollars.--Section 2433(f) of such title is 
amended by striking out ``include expected inflation'' and inserting in 
lieu thereof ``be stated in terms of constant base year dollars (as 
described in section 2430 of this title)''.
    (e) Contents of SAR.--Subparagraph (I) of section 2433(g)(1) of 
such title is amended to read as follows:
        ``(I) The type of the Baseline Estimate that was included in 
    the baseline description under section 2435 of this title and the 
    date of the Baseline Estimate.''.

SEC. 3004. REQUIREMENT FOR INDEPENDENT COST ESTIMATE AND MANPOWER 
              ESTIMATE BEFORE DEVELOPMENT OR PRODUCTION.

    (a) Content and Submission of Estimates.--Subsection (b) of section 
2434 of title 10, United States Code, is amended to read as follows:
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the content and submission of the estimates 
required by subsection (a). The regulations shall require--
        ``(1) that the independent estimate of the full life-cycle cost 
    of a program--
            ``(A) be prepared by an office or other entity that is not 
        under the supervision, direction, or control of the military 
        department, Defense Agency, or other component of the 
        Department of Defense that is directly responsible for carrying 
        out the development or acquisition of the program; and
            ``(B) include all costs of development, procurement, 
        military construction, and operations and support, without 
        regard to funding source or management control; and
        ``(2) that the manpower estimate include an estimate of the 
    total number of personnel required--
            ``(A) to operate, maintain, and support the program upon 
        full operational deployment; and
            ``(B) to train personnel to carry out the activities 
        referred to in subparagraph (A).''.
    (b) Terminology Correction, Etc.--Subsection (a) of such section is 
amended--
        (1) by striking out ``full-scale engineering development'' and 
    inserting in lieu thereof ``engineering and manufacturing 
    development''; and
        (2) by striking out ``cost of the program, together with a 
    manpower estimate, has'' and inserting in lieu thereof ``full life-
    cycle cost of the program and a manpower estimate for the program 
    have''.

SEC. 3005. BASELINE DESCRIPTION.

    (a) In General.--Section 2435 of title 10, United States Code, is 
amended to read as follows:

``Sec. 2435. Baseline description

    ``(a) Baseline Description Requirement.--(1) The Secretary of a 
military department shall establish a baseline description for each 
major defense acquisition program under the jurisdiction of such 
Secretary.
    ``(2) The baseline shall include sufficient parameters to describe 
the cost estimate (referred to as the `Baseline Estimate' in section 
2433 of this title), schedule, performance, supportability, and any 
other factor of such major defense acquisition program.
    ``(b) Funding Limit.--No amount appropriated or otherwise made 
available to the Department of Defense for carrying out a major defense 
acquisition program may be obligated after the program enters 
engineering and manufacturing development without an approved baseline 
description unless such obligation is specifically approved by the 
Under Secretary of Defense for Acquisition and Technology.
    ``(c) Schedule.--A baseline description for a major defense 
acquisition program shall be prepared under this section--
        ``(1) before the program enters demonstration and validation;
        ``(2) before the program enters engineering and manufacturing 
    development; and
        ``(3) before the program enters production and deployment.
    ``(d) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the following:
        ``(1) The content of baseline descriptions under this section.
        ``(2) The submission to the Secretary of the military 
    department concerned and the Under Secretary of Defense for 
    Acquisition and Technology by the program manager for a program for 
    which there is an approved baseline description under this section 
    of reports of deviations from the baseline of the cost, schedule, 
    performance, supportability, or any other factor of the program.
        ``(3) Procedures for review of such deviation reports within 
    the Department of Defense.
        ``(4) Procedures for submission to, and approval by, the 
    Secretary of Defense of revised baseline descriptions.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by amending the item relating to 
section 2435 to read as follows:
``2435. Baseline description.''.

SEC. 3006. REPEAL OF REQUIREMENT FOR COMPETITIVE PROTOTYP- ING FOR 
              MAJOR PROGRAMS.

    (a) Repeal.--Section 2438 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by striking out the item relating 
to section 2438.

SEC. 3007. REPEAL OF REQUIREMENT FOR COMPETITIVE ALTERNATIVE SOURCES 
              FOR MAJOR PROGRAMS.

    (a) Repeal.--Section 2439 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by striking out the item relating 
to section 2439.

                      Subtitle B--Testing Statutes

SEC. 3011. AUTHORITY OF DIRECTOR OF OPERATIONAL TEST AND EVALUATION TO 
              COMMUNICATE VIEWS DIRECTLY TO SECRETARY OF DEFENSE.

    Section 139(c) of title 10, United States Code, is amended by 
inserting after ``(c)'' the following: ``The Director may communicate 
views on matters within the responsibility of the Director directly to 
the Secretary of Defense and the Deputy Secretary of Defense without 
obtaining the approval or concurrence of any other official within the 
Department of Defense.''.

SEC. 3012. RESPONSIBILITY OF DIRECTOR OF OPERATIONAL TEST AND 
              EVALUATION FOR LIVE FIRE TESTING.

    (a) Oversight of Live Fire Testing.--Subsection (b) of section 139 
of title 10, United States Code, is amended--
        (1) by striking out ``and'' at the end of paragraph (4);
        (2) by striking out the period at the end of paragraph (5) and 
    inserting in lieu thereof ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(6) monitor and review the live fire testing activities of 
    the Department of Defense provided for under section 2366 of this 
    title.''.
    (b) Annual Report on Live Fire Testing.--Subsection (f) of such 
section is amended by inserting ``(including live fire testing 
activities)'' in the first sentence after ``operational test and 
evaluation activities''.

SEC. 3013. REQUIREMENT FOR UNCLASSIFIED VERSION OF ANNUAL REPORT ON 
              OPERATIONAL TEST AND EVALUATION.

    Section 139(f) of title 10, United States Code, is amended by 
inserting after the second sentence the following new sentence: ``If 
the Director submits the report to Congress in a classified form, the 
Director shall concurrently submit an unclassified version of the 
report to Congress.''.

SEC. 3014. SURVIVABILITY AND LETHALITY TESTING.

    (a) In General.--Section 2366(c) of title 10, United States Code, 
is amended--
        (1) by redesignating paragraph (2) as paragraph (4);
        (2) by designating the second sentence of paragraph (1) as 
    paragraph (3) and in that paragraph by striking out ``such 
    certification'' and inserting in lieu thereof ``certification under 
    paragraph (1) or (2)''; and
        (3) by inserting before paragraph (3) (as so designated) the 
    following new paragraph:
    ``(2) In the case of a covered system (or covered product 
improvement program for a covered system), the Secretary may waive the 
application of the survivability and lethality tests of this section to 
such system or program and instead allow testing of the system or 
program in combat by firing munitions likely to be encountered in 
combat at components, subsystems, and subassemblies, together with 
performing design analyses, modeling and simulation, and analysis of 
combat data. Such alternative testing may not be carried out in the 
case of any covered system (or covered product improvement program for 
a covered system) unless the Secretary certifies to Congress, before 
the system or program enters engineering and manufacturing development, 
that the survivability and lethality testing of such system or program 
otherwise required by this section would be unreasonably expensive and 
impracticable.''.
    (b) Terminology Correction.--Section 2366(c)(1) of such title is 
amended by striking out ``full-scale engineering development'' in the 
first sentence and inserting in lieu thereof ``engineering and 
manufacturing development''.

SEC. 3015. LIMITATION ON QUANTITIES TO BE PROCURED FOR LOW-RATE INITIAL 
              PRODUCTION.

    Section 2400(a) of title 10, United States Code, is amended--
        (1) in paragraph (2)--
            (A) by striking out ``paragraph (1)'' and inserting in lieu 
        thereof ``this section''; and
            (B) by striking out ``full-scale engineering development'' 
        and inserting in lieu thereof ``engineering and manufacturing 
        development'';
        (2) by redesignating paragraph (4) as paragraph (5) and in that 
    paragraph by inserting after the first sentence the following: ``If 
    the quantity exceeds 10 percent of the total number of articles to 
    be produced, as determined at the milestone II decision with 
    respect to that system, the Secretary shall include in the 
    statement the reasons for such quantity.''; and
        (3) by inserting after paragraph (3) the following new 
    paragraph (4):
    ``(4) The quantity of articles of a major system that may be 
procured for low-rate initial production may not be less than one 
operationally configured production unit unless another quantity is 
established at the milestone II decision.''.

                   Subtitle C--Service Specific Laws

SEC. 3021. GRATUITOUS SERVICES OF OFFICERS OF CERTAIN RESERVE 
              COMPONENTS.

    (a) Acceptance by Secretary of Defense.--Section 10212 of title 10, 
United States Code, is amended--
        (1) by designating the text as subsection (b); and
        (2) by inserting before such subsection the following new 
    subsection:
    ``(a) Notwithstanding section 1342 of title 31, the Secretary of 
Defense may accept the gratuitous services of an officer of a reserve 
component (other than an officer of the Army National Guard of the 
United States or the Air National Guard of the United States) in 
consultation upon matters relating to the armed forces.''.
    (b) Effective Date.--Notwithstanding section 10001, the amendments 
made by subsection (a) shall take effect on December 1, 1994, 
immediately after the amendments made by the Reserve Officer Personnel 
Management Act.

SEC. 3022. AUTHORITY TO RENT SAMPLES, DRAWINGS, AND OTHER INFORMATION 
              TO OTHERS.

    Subsection (a) of section 2539b of title 10, United States Code, as 
redesignated by section 1070(a)(13)(A) of the National Defense 
Authorization Act for Fiscal Year 1995, is amended by inserting 
``rent,'' after ``sell,'' each place it appears in paragraphs (1) and 
(2).

SEC. 3023. REPEAL OF APPLICATION OF PUBLIC CONTRACTS ACT TO CERTAIN 
              NAVAL VESSEL CONTRACTS.

    (a) Repeal.--Section 7299 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7299.

SEC. 3024. REPEAL OF REQUIREMENT FOR CONSTRUCTION OF VESSELS ON PACIFIC 
              COAST.

    (a) Repeal.--Section 7302 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7302.

SEC. 3025. SCIENTIFIC INVESTIGATION AND RESEARCH FOR THE NAVY.

    (a) Repeal.--Section 7203 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 631 of such title is amended by striking out the item relating 
to section 7203.

                  Subtitle D--Civil Reserve Air Fleet

SEC. 3031. DEFINITIONS.

    (a) Contractor Defined.--Section 9511(8) of title 10, United States 
Code, is amended--
        (1) in clause (A)--
            (A) by inserting ``under section 9512 of this title'' after 
        ``and who contracts with the Secretary''; and
            (B) by striking out ``or'' at the end; and
        (2) by inserting before the period at the end the following: 
    ``, or (C) who owns or controls, or will own or control, new or 
    existing aircraft and who, by contract, commits some or all of such 
    aircraft to the Civil Reserve Air Fleet''.
    (b) Other Definitions.--Section 9511 of such title is further 
amended--
        (1) in paragraph (1)--
            (A) by inserting ```civil aircraft','' before 
        ```person','';
            (B) by striking out ``meaning'' and inserting in lieu 
        thereof ``meanings''; and
            (C) by striking out ``section 101 of the Federal Aviation 
        Act of 1958 (49 U.S.C. 1301)'' and inserting in lieu thereof 
        ``section 40102 of title 49'';
        (2) by striking out paragraph (6);
        (3) by redesignating paragraphs (7), (8), (9), (10), (11), and 
    (12) as paragraphs (6), (7), (8), (9), (10), and (11), 
    respectively; and
        (4) in paragraph (11), as so redesignated--
          (A) by striking out ``interoperability'' and inserting in 
        lieu thereof ``compatibility''; and
            (B) by inserting ``an aeromedical aircraft or'' before ``a 
        cargo-convertible,''.
    (c) Technical Correction.--Such section is amended by striking out 
``In this subchapter:'' and inserting in lieu thereof ``In this 
chapter:''.

SEC. 3032. CONSOLIDATION OF PROVISIONS RELATING TO CONTRACTUAL 
              COMMITMENT OF AIRCRAFT.

    Chapter 931 of title 10, United States Code, is amended--
        (1) in subsection (a) of section 9512, by inserting ``Authority 
    to Contract.--'' after ``(a)'';
        (2) in subsection (c) of section 9512, by striking out ``(c)'' 
    and inserting in lieu thereof ``(d) Authority To Contract and Pay 
    Directly.--'';
        (3) in subsection (b) of section 9512, by striking out ``(b)'' 
    and inserting in lieu thereof ``(c) Terms and Required Repayment.--
    '';
        (4) by redesignating subsection (a) of section 9513 as 
    subsection (b), transferring such subsection (as so redesignated) 
    to section 9512, and inserting such subsection after subsection 
    (a);
        (5) by redesignating subsection (b) of section 9513 as 
    subsection (e) and transferring such subsection (as so 
    redesignated) to the end of section 9512;
        (6) in subsection (b) of section 9512, as redesignated and 
    transferred to such section by paragraph (4)--
            (A) by striking out ``under section 9512 of this title'' 
        and inserting in lieu thereof ``entered into under this 
        section''; and
            (B) by inserting ``Commitment to Civil Reserve Air Fleet.--
        '' after ``(b)'';
        (7) in subsection (c) of section 9512, as redesignated by 
    paragraph (3), by striking out ``the terms required by section 9513 
    of this title and'';
        (8) in subsection (e) of section 9512, as redesignated and 
    transferred to such section by paragraph (5)--
            (A) by striking out ``under section 9512 of this title'' 
        and inserting in lieu thereof ``entered into under this 
        section''; and
            (B) by inserting ``Exclusivity of Commitment to Civil 
        Reserve Air Fleet.--'' after ``(e)''; and
        (9) by striking out the heading of section 9513.

SEC. 3033. USE OF MILITARY INSTALLATIONS BY CONTRACTORS.

    (a) Authority.--Chapter 931 of title 10, United States Code, as 
amended by section 3022, is further amended by adding at the end the 
following new section 9513:

``Sec. 9513. Use of military installations by Civil Reserve Air Fleet 
            contractors

    ``(a) Contract Authority.--(1) The Secretary of the Air Force--
        ``(A) may, by contract entered into with any contractor, 
    authorize such contractor to use one or more Air Force 
    installations designated by the Secretary; and
        ``(B) with the consent of the Secretary of another military 
    department, may, by contract entered into with any contractor, 
    authorize the contractor to use one or more installations, 
    designated by the Secretary of the Air Force, that is under the 
    jurisdiction of the Secretary of such other military department.
    ``(2) The Secretary of the Air Force may include in the contract 
such terms and conditions as the Secretary determines appropriate to 
promote the national defense or to protect the interests of the United 
States.
    ``(b) Purposes of Use.--A contract entered into under subsection 
(a) may authorize use of a designated installation as a weather 
alternate, as a technical stop not involving the enplaning or deplaning 
of passengers or cargo, or, in the case of an installation within the 
United States, for other commercial purposes. Notwithstanding any other 
provision of the law, the Secretary may establish different levels and 
types of uses for different installations for commercial operations not 
required by the Department of Defense and may provide in contracts 
under subsection (a) for different levels and types of uses by 
different contractors.
    ``(c) Disposition of Payments for Use.--Notwithstanding any other 
provision of law, amounts collected from the contractor for landing 
fees, services, supplies, or other charges authorized to be collected 
under the contract shall be credited to the appropriations of the armed 
forces having jurisdiction over the military installation to which the 
contract pertains. Amounts so credited to an appropriation shall be 
available for obligation for the same period as the appropriation to 
which credited.
    ``(d) Hold Harmless Requirement.--A contract entered into under 
subsection (a) shall provide that the contractor agrees to indemnify 
and hold harmless the United States from any action, suit, or claim of 
any sort resulting from, relating to, or arising out of any activities 
conducted, or services or supplies furnished, in connection with the 
contract.
    ``(e) Reservation of Right To Exclude Contractor.--A contract 
entered into under subsection (a) shall provide that the Secretary 
concerned may, without providing prior notice, deny access to an 
installation designated under the contract when the Secretary 
determines that it is necessary to do so in order to meet military 
exigencies.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by striking out the item relating to section 
9513 and inserting in lieu thereof the following:

``9513. Use of military installations by Civil Reserve Air Fleet 
          contractors.''.

                       Subtitle E--Miscellaneous

SEC. 3061. REGULATIONS ON PROCUREMENT, PRODUCTION, WARE- HOUSING, AND 
              SUPPLY DISTRIBUTION FUNCTIONS.

    (a) In General.--Section 2202 of title 10, United States Code, is 
amended to read as follows:

``Sec. 2202. Regulations on procurement, production, warehous- ing, and 
            supply distribution functions

    ``The Secretary of Defense shall prescribe regulations governing 
the performance within the Department of Defense of the procurement, 
production, warehousing, and supply distribution functions, and related 
functions, of the Department of Defense.''.
    (b) Clerical Amendment.--The item relating to section 2202 in the 
table of sections at the beginning of chapter 131 of such title is 
amended to read as follows:
``2202. Regulations on procurement, production, warehousing, and supply 
          distribution functions.''.

SEC. 3062. REPEAL OF REQUIREMENTS REGARDING PRODUCT EVALUATION 
              ACTIVITIES.

    (a) Repeal.--Section 2369 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking out the item related 
to section 2369.

SEC. 3063. DEPARTMENT OF DEFENSE ACQUISITION OF INTELLECTUAL PROPERTY 
              RIGHTS.

    Section 2386 of title 10, United States Code, is amended by 
striking out paragraphs (3) and (4) and inserting in lieu thereof the 
following:
        ``(3) Technical data and computer software.
        ``(4) Releases for past infringement of patents or copyrights 
    or for unauthorized use of technical data or computer software.''.

SEC. 3064. LIQUID FUELS AND NATURAL GAS: CONTRACTS FOR STORAGE, 
              HANDLING, OR DISTRIBUTION.

    Section 2388(a) of title 10, United States Code, is amended by 
striking out ``liquid fuels and natural gas'' and inserting in lieu 
thereof ``liquid fuels or natural gas''.

SEC. 3065. CODIFICATION AND REVISION OF LIMITATION ON LEASE OF VESSELS, 
              AIRCRAFT, AND VEHICLES.

    (a) Limitation.--(1) Chapter 141 of title 10, United States Code, 
is amended by inserting after section 2401 the following new section:

``Sec. 2401a. Lease of vessels, aircraft, and vehicles

    ``The Secretary of Defense or the Secretary of a military 
department may not enter into any contract with a term of 18 months or 
more, or extend or renew any contract for a term of 18 months or more, 
for any vessel, aircraft, or vehicle, through a lease, charter, or 
similar agreement, unless the Secretary has considered all costs of 
such contract (including estimated termination liability) and has 
determined in writing that the contract is in the best interest of the 
Government.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2401 the 
following new item:
``2401a. Lease of vessels, aircraft, and vehicles.''.

    (b) Repeal of Superseded Provision.--Section 9081 of Public Law 
101-165 (103 Stat. 1147; 10 U.S.C. 2401 note) is repealed.

SEC. 3066. SOFT DRINK SUPPLIES.

    Section 2424 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Paragraphs (1) and (2) of subsection (b) do not apply to 
contracts for the procurement of soft drinks that are manufactured in 
the United States. The Secretary of Defense shall prescribe in 
regulations the standards and procedures for determining whether a 
particular drink is a soft drink and whether the drink was manufactured 
in the United States.''.

SEC. 3067. DISBURSEMENT OF FUNDS OF MILITARY DEPARTMENT TO COVER 
              OBLIGATIONS OF ANOTHER AGENCY OF DEPARTMENT OF DEFENSE.

    Subsection (c)(2) of section 3321 of title 31, United States Code, 
is amended by striking out ``military departments of the'' and 
inserting in lieu thereof ``The''.

               TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD
                 Subtitle A--Establishment of Threshold

SEC. 4001. SIMPLIFIED ACQUISITION THRESHOLD DEFINED.

    Section 4(11) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(11)) is amended to read as follows:
        ``(11) The term `simplified acquisition threshold' means 
    $100,000.''.

SEC. 4002. ESTABLISHMENT OF SIMPLIFIED ACQUISITION THRESHOLD FOR ARMED 
              SERVICES.

    (a) Establishment in Title 10.--Chapter 137 of title 10, United 
States Code, is amended by inserting after section 2302 the following 
new sections:

``Sec. 2302a. Simplified acquisition threshold

    ``(a) Simplified Acquisition Threshold.--For purposes of 
acquisitions by agencies named in section 2303 of this title, the 
simplified acquisition threshold is as specified in section 4(11) of 
the Office of Federal Procurement Policy Act.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2302 the following new item:
``2302a. Simplified acquisition threshold.''.

SEC. 4003. ESTABLISHMENT OF SIMPLIFIED ACQUISITION THRESHOLD FOR 
              CIVILIAN AGENCIES.

    Title III of the Federal Property and Administrative Services Act 
of 1949 is amended by inserting after section 302 the following new 
section:

``SEC. 302A. SIMPLIFIED ACQUISITION THRESHOLD.

    ``(a) Simplified Acquisition Threshold.--For purposes of 
acquisitions by executive agencies, the simplified acquisition 
threshold is as specified in section 4(11) of the Office of Federal 
Procurement Policy Act.''.

SEC. 4004. SMALL BUSINESS RESERVATION.

    Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) is 
amended to read as follows:
    ``(j)(1) Each contract for the purchase of goods and services that 
has an anticipated value greater than $2,500 but not greater than 
$100,000 shall be reserved exclusively for small business concerns 
unless the contracting officer is unable to obtain offers from two or 
more small business concerns that are competitive with market prices 
and are competitive with regard to the quality and delivery of the 
goods or services being purchased.
    ``(2) In carrying out paragraph (1), a contracting officer shall 
consider a responsive offer timely received from an eligible small 
business offeror.
    ``(3) Nothing in paragraph (1) shall be construed as precluding an 
award of a contract with a value not greater than $100,000 under the 
authority of subsection (a) of section 8 of this Act, section 2323 of 
title 10, United States Code, section 712 of the Business Opportunity 
Development Reform Act of 1988 (Public Law 100-656; 15 U.S.C. 644 
note), or section 7102 of the Federal Acquisition Streamlining Act of 
1994.''.

  Subtitle B--Inapplicability of Laws to Acquisitions at or Below the 
                    Simplified Acquisition Threshold

SEC. 4101. LIST OF INAPPLICABLE LAWS IN FEDERAL ACQUISITION REGULATION.

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

``SEC. 33. LIST OF LAWS INAPPLICABLE TO CONTRACTS NOT GREATER THAN THE 
              SIMPLIFIED ACQUISITION THRESHOLD IN FEDERAL ACQUISITION 
              REGULATION.

    ``(a) List of Inapplicable Provisions of Law.--(1) The Federal 
Acquisition Regulation shall include a list of provisions of law that 
are inapplicable to contracts or subcontracts in amounts not greater 
than the simplified acquisition threshold. A provision of law that is 
properly included on the list pursuant to paragraph (2) may not be 
construed as applicable to such contracts or subcontracts (as the case 
may be) by an executive agency. Nothing in this section shall be 
construed to render inapplicable to contracts and subcontracts in 
amounts not greater than the simplified acquisition threshold any 
provision of law that is not included on such list.
    ``(2) A provision of law described in subsection (b) that is 
enacted after the date of the enactment of the Federal Acquisition 
Streamlining Act of 1994 shall be included on the list of inapplicable 
provisions of law required by paragraph (1), unless the Federal 
Acquisition Regulatory 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.
    ``(b) Covered Law.--A provision of law referred to in subsection 
(a)(2) is any provision of law that, as determined by the Federal 
Acquisition Regulatory Council, 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.
    ``(c) Petition.--In the event that a provision of law described in 
subsection (b) is not included on the list of inapplicable provisions 
of law as required by subsection (a), and no written determination has 
been made by the Federal Acquisition Regulatory Council pursuant to 
subsection (a)(2), a person may petition the Administrator for Federal 
Procurement Policy to take appropriate action. The Administrator shall 
revise the Federal Acquisition Regulation to include the provision on 
the list of inapplicable provisions of law unless the Federal 
Acquisition Regulatory Council makes a determination pursuant to 
subsection (a)(2) within 60 days after the date on which the petition 
is received.''.

SEC. 4102. ARMED SERVICES ACQUISITIONS.

    (a) List of Inapplicable Laws in FAR.--Section 2302a of title 10, 
United States Code, as added by section 4002, is amended by adding at 
the end the following:
    ``(b) Inapplicable Laws.--No law properly listed in the Federal 
Acquisition Regulation pursuant to section 33 of the Office of Federal 
Procurement Policy Act shall apply to or with respect to a contract or 
subcontract that is not greater than the simplified acquisition 
threshold.''.
    (b) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 2306(b) of title 10, United States Code, is 
amended by adding at the end the following: ``This subsection does not 
apply to a contract that is for an amount not greater than the 
simplified acquisition threshold.''.
    (c) Inapplicability of Authority To Examine Books and Records of 
Contractors.--Section 2313 of title 10, United States Code, as amended 
by section 2201, is further amended by adding at the end of subsection 
(f) the following:
        ``(2) A contract or subcontract that is for an amount not 
    greater than the simplified acquisition threshold.''.
    (d) Inapplicability of Requirement To Identify Suppliers and 
Sources of Supplies.--Section 2384(b) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(3) The regulations prescribed pursuant to paragraph (1) do not 
apply to a contract for an amount not greater than the simplified 
acquisition threshold (as defined in section 4(11) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(11)).''.
    (e) Inapplicability of Prohibition Against Doing Business with 
Certain Offerors or Contractors.--Section 2393(d) of title 10, United 
States Code, is amended in the second sentence by striking out 
``above'' and all that follows and inserting in lieu thereof ``greater 
than the simplified acquisition threshold (as defined in section 4(11) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(11))).''.
    (f) Inapplicability of Prohibition on Limiting Subcontractor Direct 
Sales to the United States.--Section 2402 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(c) This section does not apply to a contract that is for an 
amount not greater than the simplified acquisition threshold (as 
defined in section 4(11) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(11))).''.
    (g) Inapplicability of Prohibition on Persons Convicted of Defense-
Related Felonies.--Section 2408(a) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(4) The prohibition in paragraph (1) does not apply with respect 
to the following:
        ``(A) A contract referred to in subparagraph (A), (B), (C), or 
    (D) of such paragraph that is not greater than the simplified 
    acquisition threshold (as defined in section 4(11) of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 403(11))).
        ``(C) A subcontract referred to in such subparagraph that is 
    under a contract described in subparagraph (A).''.
    (h) Inapplicability of Contractor Inventory Accounting System 
Standards.--Section 2410b of title 10, United States Code, is amended--
        (1) by inserting ``(a)'' before ``The Secretary''; and
        (2) by adding at the end the following:
    ``(b) The regulations prescribed pursuant to subsection (a) shall 
not apply to a contract that is for an amount not greater than the 
simplified acquisition threshold.''.
    (i) Inapplicability of Miscellaneous Procurement Limitations.--
Section 2534 of title 10, United States Code, is amended by adding at 
the end the following:
    ``(g) Inapplicability to Contracts under Simplified Acquisition 
Threshold.--This section does not apply to a contract or subcontract 
for an amount that does not exceed the simplified acquisition 
threshold.''.

SEC. 4103. CIVILIAN AGENCY ACQUISITIONS.

    (a) List of Inapplicable Laws in FAR.--Section 302A of the Federal 
Property and Administrative Services Act of 1949, as added by section 
4003, is amended by adding at the end the following:
    ``(b) Inapplicable Laws.--No law properly listed in the Federal 
Acquisition Regulation pursuant to section 33 of the Office of Federal 
Procurement Policy Act shall apply to or with respect to a contract or 
subcontract that is not greater than the simplified acquisition 
threshold.''.
    (b) Inapplicability of Prohibition on Limiting Subcontractor Direct 
Sales to the United States.--Section 303G of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253g) is amended by 
adding at the end the following new subsection:
    ``(c) This section does not apply to a contract for an amount that 
is not greater than the simplified acquisition threshold.''.
    (c) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 304(a) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254(a)) is amended by 
adding at the end the following: ``The preceding sentence does not 
apply to a contract for an amount that is not greater than the 
simplified acquisition threshold.''.
    (d) Authority To Examine Books and Records of Contractors.--Section 
304C of the Federal Property and Administrative Services Act of 1949, 
as added by section 2251(a), is amended by adding at the end of 
subsection (f) the following:
        ``(2) A contract or subcontract that is not greater than the 
    simplified acquisition threshold.''.

SEC. 4104. ACQUISITIONS GENERALLY.

    (a) Requirement for Contract Clause Relating to Kickbacks.--Section 
7 of the Anti-Kickback Act of 1986 (41 U.S.C. 57) is amended by adding 
at the end the following new subsections:
    ``(d) Subsections (a) and (b) do not apply to a prime contract that 
is not greater than $100,000.
    ``(e) Notwithstanding subsection (d), a prime contractor shall 
cooperate fully with any Federal Government agency investigating a 
violation of section 3.''.
    (b) Miller Act.--(1)(A) The Miller Act is amended by adding at the 
end the following new section:
    ``Sec. 5. This Act does not apply to a contract in an amount that 
is not greater than $100,000.''.
    (B) Subsection (a) of the first section of such Act is amended by 
striking out ``, exceeding $25,000 in amount,''.
    (2)(A) The Federal Acquisition Regulation shall provide 
alternatives to payment bonds as payment protections for suppliers of 
labor and materials under contracts referred to in subparagraph (C).
    (B) The contracting officer for a contract shall--
        (i) select, from among the payment protections provided for in 
    the Federal Acquisition Regulation pursuant to subparagraph (A), 
    one or more payment protections which the offeror awarded the 
    contract is to submit to the Federal Government for the protection 
    of suppliers of labor and materials for such contract; and
        (ii) specify in the solicitation of offers for such contract 
    the payment protection or protections so selected.
    (C) The regulations required under subparagraph (A) and the 
requirements of subparagraph (B) apply with respect to contracts 
referred to in subsection (a) of the first section of the Miller Act 
that are greater than $25,000 but not greater than $100,000.
    (c) Contract Work Hours and Safety Standards Act.--(1) Section 103 
of the Contract Work Hours and Safety Standards Act (40 U.S.C. 329) is 
amended by adding at the end the following new subsection:
    ``(c) This title does not apply to a contract in an amount that is 
not greater than $100,000.''.
    (2) Section 107(a) of such Act (40 U.S.C. 333(a)) is amended by 
inserting after ``It shall be a condition of each contract'' the 
following: ``(other than a contract referred to in section 103(c))''.
    (d) Drug-Free Workplace Act of 1988.--Section 5152(a)(1) of the 
Drug-Free Workplace Act of 1988 (subtitle D of title V of the Anti-Drug 
Abuse Act of 1988; Public Law 100-690; 41 U.S.C. 701(a)(1)) is amended 
by striking out ``of $25,000 or more from any Federal agency'' and 
inserting in lieu thereof ``greater than the simplified acquisition 
threshold (as defined in section 4(11) of such Act (41 U.S.C. 403(11))) 
by any Federal agency''.
    (e) Solid Waste Disposal Act.--Paragraph (3) of section 6002(c) of 
the Solid Waste Disposal Act (42 U.S.C. 6962(c)) is amended--
        (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
    and (ii), respectively;
        (2) by inserting ``(A)'' after ``(3)''; and
        (4) by adding at the end the following new subparagraph:
    ``(B) Clause (ii) of subparagraph (A) applies only to a contract in 
an amount greater than $100,000.''.

             Subtitle C--Simplified Acquisition Procedures

SEC. 4201. SIMPLIFIED ACQUISITION PROCEDURES.

    (a) Requirement for Simplified Procedures in FAR.--The Office of 
Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is further 
amended by inserting before section 33, as added by section 4101, the 
following new section:

``SEC. 31. SIMPLIFIED ACQUISITION PROCEDURES.

    ``(a) Requirement.--In order 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 contracts for acquisition of property 
and services that are not greater than the simplified acquisition 
threshold.
    ``(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 
in order to use the simplified acquisition procedures required by 
subsection (a).
    ``(c) Promotion of Competition Required.--In 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 Use of Simplified Acquisition Procedures.--
        ``(1) Effect of interim facnet capability.--The simplified 
    acquisition procedures provided in the Federal Acquisition 
    Regulation pursuant to this section may not be used by a procuring 
    activity of an agency for contracts in amounts greater than $50,000 
    and not greater than the simplified acquisition threshold until a 
    certification has been made pursuant to section 30A(a)(1) that the 
    procuring activity has implemented an interim FACNET capability.
        ``(2) Effect of full facnet capability.--(A)(i) In the case of 
    a procuring activity described in clause (ii), the simplified 
    acquisition procedures provided in the Federal Acquisition 
    Regulation pursuant to this section may be used by the activity for 
    contracts in amounts greater than $50,000 and not greater than the 
    simplified acquisition threshold.
        ``(ii) Clause (i) applies to any procuring activity--
            ``(I) that has not certified, pursuant to section 
        30A(a)(1), that it has implemented interim FACNET capability; 
        and
            ``(II) that is in an agency that has excluded the procuring 
        activity from the agency's full FACNET certification under 
        section 30A(a)(2) on the basis that implementation of full 
        FACNET capability would not be cost effective or practicable in 
        that activity.
        ``(B) The simplified acquisition procedures provided in the 
    Federal Acquisition Regulation pursuant to this section may not be 
    used by an agency after December 31, 1999, for contracts in amounts 
    greater than $50,000 and not greater than the simplified 
    acquisition threshold until a certification has been made pursuant 
    to section 30A(a)(2) that the agency has implemented a full FACNET 
    capability.
    ``(f) Interim Reporting Rule.--Until October 1, 1999, procuring 
activities shall continue to report under section 19(d) procurement 
awards with a dollar value of at least $25,000, but less than $100,000, 
in conformity with the procedures for the reporting of a contract award 
greater than $25,000 that were in effect on October 1, 1992.''.
    (b) Opportunity for All Responsible Potential Offerors.--Subsection 
(a) of section 18 of such Act is amended by adding at the end the 
following:
    ``(4) An executive agency intending to solicit offers for a 
contract for which a notice of solicitation is required to be posted 
under paragraph (1)(B) shall ensure that contracting officers consider 
each responsive offer timely received from an offeror.''.
    (c) Establishment of Deadline for Submission of Offers.--Subsection 
(a) of section 18 of such Act is further amended by adding after 
paragraph (4), as added by subsection (b), the following new paragraph:
    ``(5) An executive agency shall establish a deadline for the 
submission of all bids or proposals in response to a solicitation with 
respect to which no such deadline is provided by statute. Each deadline 
for the submission of offers shall afford potential offerors a 
reasonable opportunity to respond.''.

SEC. 4202. PROCUREMENT NOTICE.

    (a) Continuation of Existing Notice Thresholds.--Subsection (a) of 
section 18 of the Office of Federal Procurement Policy Act (41 U.S.C. 
416) is amended--
        (1) in paragraph (1), by striking out ``the small purchase 
    threshold'' each place it appears and inserting in lieu thereof 
    ``$25,000''; and
        (2) in paragraph (3)(B), by inserting after ``(B)'' the 
    following: ``in the case of a contract or order expected to be 
    greater than the simplified acquisition threshold,''.
    (b) Content of Notice.--Subsection (b) of such section is amended--
        (1) by striking out ``and'' at the end of paragraph (4);
        (2) by striking out the period at the end of paragraph (5) and 
    inserting in lieu thereof a semicolon; and
        (3) by adding at the end the following:
        ``(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--
            ``(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.''.
    (c) Notice Not Required for Procurement Made Through FACNET.--
Subsection (c)(1) of such section, as amended by section 1055(b), is 
further amended--
        (1) by redesignating subparagraphs (A), (B), (C), (D), (E), and 
    (F) as subparagraphs (C), (D), (E), (F), (G), and (H), 
    respectively; and
        (2) by inserting before subparagraph (C), as so redesignated, 
    the following new subparagraphs:
        ``(A) the proposed procurement is for an amount not greater 
    than the simplified acquisition threshold and is to be made through 
    a system with interim FACNET capability certified pursuant to 
    section 30A(a)(1) or with full FACNET capability certified pursuant 
    to section 30A(a)(2);
        ``(B)(i) the proposed procurement is for an amount not greater 
    than $250,000 and is to be made through a system with full FACNET 
    capability certified pursuant to section 30A(a)(2); and
        ``(ii) a certification has been made pursuant to section 30A(b) 
    that Government-wide FACNET capability has been implemented;''.
    (d) Notice Under the Small Business Act.--
        (1) Continuation of existing notice thresholds.--Subsection (e) 
    of section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (A) in paragraph (1), by striking out ``the small purchase 
        threshold'' each place it appears and inserting in lieu thereof 
        ``$25,000''; and
            (B) in paragraph (3)(B), by inserting after ``(B)'' the 
        following: ``in the case of a contract or order estimated to be 
        greater than the simplified acquisition threshold,''.
        (2) Content of notice.--Subsection (f) of such section is 
    amended--
            (A) by striking out ``and'' at the end of paragraph (4);
            (B) by striking out the period at the end of paragraph (5) 
        and inserting in lieu thereof a semicolon; and
            (C) by adding at the end the following:
        ``(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--
            ``(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.''.
        (3) Notice not required for procurement made through facnet.--
    Subsection (g)(1) of such section is amended--
            (A) by redesignating subparagraphs (A), (B), (C), (D), (E), 
        and (F) as subparagraphs (C), (D), (E), (F), (G), and (H), 
        respectively; and
            (B) by inserting before subparagraph (C), as so 
        redesignated, the following new subparagraphs:
        ``(A) the proposed procurement is for an amount not greater 
    than the simplified acquisition threshold and is to be made through 
    a system with interim FACNET capability certified pursuant to 
    section 30A(a)(1) of the Office of Federal Procurement Policy Act 
    or with full FACNET capability certified pursuant to section 
    30A(a)(2) of such Act;
        ``(B)(i) the proposed procurement is for an amount not greater 
    than $250,000 and is to be made through a system with full FACNET 
    capability certified pursuant to section 30A(a)(2) of the Office of 
    Federal Procurement Policy Act; and
        ``(ii) a certification has been made pursuant to section 30A(b) 
    of such Act that Government-wide FACNET capability has been 
    implemented;''.

SEC. 4203. IMPLEMENTATION OF SIMPLIFIED ACQUISITION PROCEDURES.

    (a) Implementation in Title 10.--(1) Chapter 137 of title 10, 
United States Code, is amended by inserting after section 2302a, as 
added by section 4002(a), the following new section:

``Sec. 2302b. Implementation of simplified acquisition procedures

    ``The simplified acquisition procedures contained in the Federal 
Acquisition Regulation pursuant to section 31 of the Office of Federal 
Procurement Policy Act shall apply as provided in such section to the 
agencies named in section 2303(a) of this title.''.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by inserting after the item relating to section 2302a, 
as added by section 4002(b), the following new item:
``2302b. Implementation of simplified acquisition procedures.''.

    (b) Implementation in Civilian Agencies.--Title III of the Federal 
Property and Administrative Services Act of 1949 is amended by 
inserting after section 302A, as added by section 4003 and amended by 
section 4103, the following new section:

``SEC. 302B. IMPLEMENTATION OF SIMPLIFIED ACQUISITION PROCEDURES.

    ``The simplified acquisition procedures contained in the Federal 
Acquisition Regulation pursuant to section 31 of the Office of Federal 
Procurement Policy Act shall apply in executive agencies as provided in 
such section.''.

                 Subtitle D--Micro-Purchase Procedures

SEC. 4301. PROCEDURES FOR PURCHASES BELOW MICRO-PURCHASE THRESHOLD.

    (a) Procedures.--The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.) is amended by adding after section 31, as added by 
section 4201, the following new section:

``SEC. 32. PROCEDURES APPLICABLE TO PURCHASES BELOW MICRO-PURCHASE 
              THRESHOLD.

    ``(a) Requirements.--(1) The head of each executive agency shall 
ensure that procuring activities of that agency, in 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, United States Code, and section 7102 
of the Federal Acquisition Streamlining Act of 1994.
    ``(2) 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 any purchases with a price exceeding the 
micro-purchase threshold.
    ``(b) Exclusion for Micro-Purchases.--A purchase by an executive 
agency 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 the Buy American Act (41 U.S.C. 10a-10c).
    ``(c) Applicability of Certain Provisions.--For purposes of section 
27, an officer or employee of an executive agency, or a member of the 
Armed Forces of the United States, shall not be considered a 
procurement official if--
        ``(1) the contracting authority of the officer, employee, or 
    member does not exceed $2,500; and
        ``(2) the head of the contracting activity concerned (or a 
    designee of the head of the contracting activity concerned) 
    determines that the duties of the position of that officer, 
    employee, or member are such that is it unlikely that the officer, 
    employee, or member will be required to conduct procurements in a 
    total amount greater than $20,000 in any 12-month period.
    ``(d) Purchases Without Competitive Quotations.--A purchase not 
greater than $2,500 may be made without obtaining competitive 
quotations if the contracting officer determines that the price for the 
purchase is reasonable.
    ``(e) Equitable Distribution.--Purchases not greater than $2,500 
shall be distributed equitably among qualified suppliers.
    ``(f) Implementation Through FAR.--This section shall be 
implemented through the Federal Acquisition Regulation.
    ``(g) Micro-Purchase Threshold Defined.--For purposes of this 
section, the micro-purchase threshold is the amount of $2,500.''.
    (b) Exception To Buy American Act for Micro-Purchases.--Section 2 
of the Buy American Act (41 U.S.C. 10a) is amended by adding at the end 
the following: ``This section shall not apply to manufactured articles, 
materials, or supplies procured under any contract the award value of 
which is less than or equal to the micro-purchase threshold under 
section 32 of the Office of Federal Procurement Policy Act.''.
    (c) Effective Date.--Notwithstanding any other provision of law--
        (1) section 32 of the Office of Federal Procurement Policy Act, 
    as added by subsection (a); and
        (2) the amendment made by subsection (b);
shall take effect on the date of the enactment of this Act and shall be 
implemented in the Federal Acquisition Regulation not later than 60 
days after such date of enactment.

                   Subtitle E--Conforming Amendments

SEC. 4401. ARMED SERVICES ACQUISITIONS.

    (a) Simplified Acquisition Procedures.--Section 2304(g) of title 
10, United States Code, is amended--
        (1) in paragraph (1), by striking out ``small purchases of 
    property and services'' and inserting in lieu thereof ``purchases 
    of property and services for amounts not greater than the 
    simplified acquisition threshold'';
        (2) by striking out paragraph (2);
        (3) by redesignating paragraphs (3) and (4) as paragraphs (2) 
    and (3), respectively;
        (4) in paragraph (2), as so redesignated--
            (A) by striking out ``small purchase threshold'' and 
        inserting in lieu thereof ``simplified acquisition threshold''; 
        and
            (B) by striking out ``small purchase procedures'' and 
        inserting in lieu thereof ``simplified procedures''; and
        (5) in paragraph (3), as redesignated by paragraph (3), by 
    striking out ``small purchase procedures'' and inserting in lieu 
    thereof ``simplified procedures''.
    (b) Solicitation Content Requirement.--Section 2305(a)(2) of such 
title is amended by striking out ``small purchases)'' in the matter 
preceding subparagraph (A) and inserting in lieu thereof ``a purchase 
for an amount not greater than the simplified acquisition threshold)''.
    (c) Cost Type Contracts.--Section 2306(e)(2)(A) of such title is 
amended by striking out ``small purchase threshold'' and inserting in 
lieu thereof ``simplified acquisition threshold''.
    (d) Reports of Employees or Former Employees of Defense 
Contractors.--Subsection (a)(1) of section 2397 of title 10, United 
States Code, is amended by striking out ``small purchase threshold (as 
defined in section 2302(7) of this title)'' and inserting in lieu 
thereof ``simplified acquisition threshold''.
    (e) Cross Reference Amendment.--Section 9005 of Public Law 102-396 
(10 U.S.C. 2441 note) is amended in the first sentence by striking out 
``small purchases covered by section 2304(g)'' and inserting in lieu 
thereof ``purchases for amounts not greater than the simplified 
acquisition threshold covered by section 2304(g)''.

SEC. 4402. CIVILIAN AGENCY ACQUISITIONS.

    (a) Simplified Acquisition Procedures.--Section 303(g) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253(g)) is amended--
        (1) in paragraph (1)--
            (A) by striking out ``small purchases of property and 
        services'' and inserting in lieu thereof ``purchases of 
        property and services for amounts not greater than the 
        simplified acquisition threshold'', and
            (B) by striking out ``regulations modified, in accordance 
        with section 2752 of the Competition in Contracting Act of 
        1984,'' and inserting in lieu thereof ``Federal Acquisition 
        Regulation'';
        (2) by striking out paragraph (2) and inserting in lieu thereof 
    the following:
    ``(2)(A) 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.
    ``(B) For purposes of subparagraph (A), the rental rate or rates 
under a multiyear lease do 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.'';
        (3) in paragraph (3)--
            (A) by striking out ``small purchase threshold'' and 
        inserting in lieu thereof ``simplified acquisition threshold''; 
        and
            (B) by striking out ``small purchase procedures'' and 
        inserting in lieu thereof ``simplified procedures'';
        (4) in paragraph (4), by striking out ``small purchase 
    procedures'' and inserting in lieu thereof ``the simplified 
    procedures''; and
        (5) by striking out paragraph (5).
    (b) Solicitation Content Requirement.--Section 303A(b) of such Act 
(41 U.S.C. 253a(b)) is amended by striking out ``small purchases)'' in 
the matter preceding paragraph (1) and inserting in lieu thereof ``a 
purchase for an amount not greater than the simplified acquisition 
threshold)''.
    (c) Cost Type Contracts.--Section 304(b) of such Act (41 U.S.C. 
254(b)) is amended in the sentence beginning with ``All cost and cost-
plus-a-fixed-fee'' by striking out ``either $25,000'' and inserting in 
lieu thereof ``either the simplified acquisition threshold''.

SEC. 4403. OFFICE OF FEDERAL PROCUREMENT POLICY ACT.

    Section 19(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 417(a)) is amended by striking out ``procurements, other than 
small purchases,'' and inserting in lieu thereof ``procurements greater 
than the simplified acquisition threshold''.

SEC. 4404. SMALL BUSINESS ACT.

    (a) Definition.--Section 3(m) of the Small Business Act (15 U.S.C. 
632(m)) is amended by striking out ```small purchase threshold''' and 
inserting in lieu thereof ```simplified acquisition threshold'''.
    (b) Use of Simplified Acquisition Threshold Term.--Section 
8(d)(2)(A) of the Small Business Act (15 U.S.C. 637(d)(2)(A)) is 
amended by striking out ``small purchase threshold'' and inserting in 
lieu thereof ``simplified acquisition threshold''.

                    TITLE V--ACQUISITION MANAGEMENT
                Subtitle A--Armed Services Acquisitions

SEC. 5001. PERFORMANCE BASED MANAGEMENT.

    (a) Policy and Goals for Performance Based Management of 
Programs.--(1) Chapter 131 of title 10, United States Code, is amended 
by adding at the end the following new section:

``Sec. 2220. Performance based management: acquisition programs

    ``(a) Establishment of Goals.--(1) The Secretary of Defense shall 
approve or define the cost, performance, and schedule goals for major 
defense acquisition programs of the Department of Defense and for each 
phase of the acquisition cycle of such programs.
    ``(2) The Comptroller of the Department of Defense shall evaluate 
the cost goals proposed for each major defense acquisition program of 
the Department.
    ``(b) Annual Reporting Requirement.--The Secretary of Defense shall 
include in the annual report submitted to Congress pursuant to section 
113(c) of this title an assessment of whether major and nonmajor 
acquisition programs of the Department of Defense are achieving, on 
average, 90 percent of cost, performance, and schedule goals 
established pursuant to subsection (a) and whether the average period 
for converting emerging technology into operational capability has 
decreased by 50 percent or more from the average period required for 
such conversion as of the date of the enactment of the Federal 
Acquisition Streamlining Act of 1994. The Secretary shall use data from 
existing management systems in making the assessment.
    ``(c) Performance Evaluation.--Whenever the Secretary of Defense, 
in the assessment required by subsection (b), determines that major 
defense acquisition programs of the Department of Defense are not 
achieving, on average, 90 percent of cost, performance, and schedule 
goals established pursuant to subsection (a), the Secretary shall 
ensure that there is a timely review of major defense acquisition 
programs and other programs as appropriate. In conducting the review, 
the Secretary 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 such programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2220. Performance based management: acquisition programs.''.

    (b) Enhanced System of Performance Incentives.--Within one year 
after the date of the enactment of this Act, the Secretary of Defense 
shall review the incentives and personnel actions available to the 
Secretary of Defense for encouraging excellence in the management of 
defense acquisition programs and provide an enhanced system of 
incentives to facilitate the achievement of goals approved or defined 
pursuant to section 2220(a) of title 10, United States Code. The 
enhanced system of incentives shall, to the maximum extent consistent 
with applicable law--
        (1) relate pay to performance (including the extent to which 
    the performance of personnel in such programs contributes to 
    achieving the cost goals, performance goals, and schedule goals 
    established for acquisition programs of the Department of Defense 
    pursuant to section 2220(a) of title 10, as added by subsection 
    (a)); and
        (2) provide for consideration, in personnel evaluations and 
    promotion decisions, of the extent to which the performance of 
    personnel in such programs contributes to achieving the cost goals, 
    performance goals, and schedule goals established for acquisition 
    programs of the Department of Defense pursuant to section 2220(a) 
    of title 10, United States Code, as added by subsection (a).
    (c) Recommended Legislation.--Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress any recommended legislation that the Secretary 
considers necessary to carry out section 2220 of title 10, United 
States Code, as added by subsection (a), and otherwise to facilitate 
and enhance management of Department of Defense acquisition programs on 
the basis of performance.

SEC. 5002. REVIEW OF ACQUISITION PROGRAM CYCLE.

    (a) Review.--The Secretary of Defense shall review the regulations 
of the Department of Defense to ensure that acquisition program cycle 
procedures are focused on achieving the goals that are consistent with 
the program baseline description established pursuant to section 2435 
of title 10, United States Code.
    (b) Repeals.--Sections 835 and 836 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 
1717) are hereby repealed.

                Subtitle B--Civilian Agency Acquisitions

SEC. 5051. PERFORMANCE BASED MANAGEMENT.

    (a) Policy and Goals for Performance Based Management of 
Programs.--Title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 301 et seq.), as amended by sections 
1552 and 1553, is further amended by adding at the end the following 
new section:

``SEC. 313. PERFORMANCE BASED MANAGEMENT: 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 and schedule goals established for major and nonmajor 
acquisition programs of the agency without reducing the performance or 
capabilities of the items being acquired.
    ``(b) Establishment of Goals.--(1) The head of each executive 
agency shall approve or define the cost, performance, and schedule 
goals for major acquisition programs of the agency.
    ``(2) 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.--Whenever it is 
necessary to do so in order 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 such programs.''.
    (b) Annual Reporting Requirement.--Section 6 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405), as amended by section 
1091, is further amended by adding at the end the following new 
subsection:
    ``(k) The Administrator shall submit to Congress, on an annual 
basis, an assessment of the progress made in executive agencies in 
implementing the policy stated in section 313(a) of the Federal 
Property and Administrative Services Act of 1949. The Administrator 
shall use data from existing management systems in making the 
assessment.''.
    (c) Enhanced System of Performance Incentives.--Within one year 
after the date of the enactment of this Act, the Deputy Director for 
Management of the Office of Management and Budget, in consultation with 
appropriate officials in other departments and agencies of the Federal 
Government, shall, to the maximum extent consistent with applicable 
law--
        (1) establish policies and procedures for the heads of such 
    departments and agencies to designate acquisition positions and 
    manage employees (including the accession, education, training and 
    career development of employees) in the designated acquisition 
    positions; and
        (2) review the incentives and personnel actions available to 
    the heads of departments and agencies of the Federal Government for 
    encouraging excellence in the acquisition workforce of the Federal 
    Government and provide an enhanced system of incentives for the 
    encouragement of excellence in such workforce which--
            (A) relates pay to performance (including the extent to 
        which the performance of personnel in such workforce 
        contributes to achieving the cost goals, schedule goals, and 
        performance goals established for acquisition programs pursuant 
        to section 313(b) of the Federal Property and Administrative 
        Services Act of 1949, as added by subsection (a)); and
            (B) provides for consideration, in personnel evaluations 
        and promotion decisions, of the extent to which the performance 
        of personnel in such workforce contributes to achieving such 
        cost goals, schedule goals, and performance goals.
    (d) Recommended Legislation.--Not later than one year after the 
date of the enactment of this Act, the Administrator for Federal 
Procurement Policy shall submit to Congress any recommended legislation 
that the Secretary considers necessary to carry out section 313 of the 
Federal Property and Administrative Services Act of 1949, as added by 
subsection (a), and otherwise to facilitate and enhance management of 
Federal Government acquisition programs and the acquisition workforce 
of the Federal Government on the basis of performance.

SEC. 5052. RESULTS-ORIENTED ACQUISITION PROCESS.

    (a) Development of Process Required.--The Administrator for Federal 
Procurement Policy, in consultation with the heads of appropriate 
Federal agencies, shall develop results-oriented acquisition process 
guidelines for implementation by agencies in acquisitions of property 
and services by the Federal agencies. The process guidelines shall 
include the identification of quantitative measures and standards for 
determining the extent to which an acquisition of items other than 
commercial items by a Federal agency satisfies the needs for which the 
items are being acquired.
    (b) Inapplicability of Process to Department of Defense.--The 
process guidelines developed pursuant to subsection (a) may not be 
applied to the Department of Defense.

                       Subtitle C--Pilot Programs

SEC. 5061. OFPP TEST PROGRAM FOR EXECUTIVE AGENCIES.

    (a) In General.--The Administrator for Federal Procurement Policy 
(in this section referred to as the ``Administrator'') may conduct a 
program of tests of alternative and innovative procurement procedures. 
To the extent consistent with this section, such program shall be 
conducted consistent with section 15 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 413). No more than 6 such tests shall 
be conducted under the authority of this subsection, and not more than 
1 such test shall be conducted under such authority in an agency.
    (b) Designation of Agencies.--Each test conducted pursuant to 
subsection (a) shall be carried out in not more than 2 specific 
procuring activities in an agency designated by the Administrator. Each 
agency so designated shall select the procuring activities 
participating in the test with the approval of the Administrator and 
shall designate a procurement testing official who shall be responsible 
for the conduct and evaluation of tests within that agency.
    (c) Test Requirements and Limitations.--(1) Each test conducted 
under subsection (a)--
        (A) shall be developed and structured by the Administrator or 
    by the agency senior procurement executive designated pursuant to 
    section 16(3) of the Office of Federal Procurement Policy Act (41 
    U.S.C. 414(3)) in close coordination with the Administrator; and
        (B) shall be limited to specific programs of agencies or 
    specific acquisitions.
    (2) The total estimated life-cycle cost to the Federal Government 
for each test conducted under subsection (a) may not exceed 
$100,000,000.
    (3)(A) Except as provided in subparagraph (B), each contract 
awarded in conducting the tests under subsection (a) (including the 
cost of options if all options were to be exercised) may not exceed 
$5,000,000.
    (B) For one of the tests conducted under subsection (a), the amount 
of each contract awarded in conducting the test (including options) may 
exceed $5,000,000.
    (4) The program of tests conducted under subsection (a) shall 
include, either as a test or as part of a test, the use of the Federal 
acquisition computer network (``FACNET'') capability required by 
section 30 of the Office of Federal Procurement Policy Act (as added by 
section 9001) for procurement actions in amounts greater than the 
simplified acquisition threshold.
    (d) Limitation on Total Value of Contracts Under Program.--(1) The 
Administrator shall ensure that the total amount obligated under 
contracts awarded pursuant to the program under this section does not 
exceed $600,000,000. In calculating such amount, the Administrator 
shall not include any contract awarded for the test conducted by the 
National Aeronautics and Space Administration pursuant to section 5062 
of this Act.
    (2) The Administrator shall monitor the value of contracts awarded 
pursuant to the program under this section.
    (3) No contract may be awarded under the program under this section 
if the award of the contract would result in obligation of more than 
$600,000,000 under contracts awarded pursuant to the program under this 
section.
    (e) Procedures Authorized.--Tests conducted under this section may 
include any of the following procedures:
        (1) Publication of agency needs before drafting of a 
    solicitation.
        (2) Issuance of draft solicitations for comment.
        (3) Streamlined solicitations that specify as the evaluation 
    factors the minimum factors necessary, require sources to submit 
    the minimum information necessary, provide abbreviated periods for 
    submission of offers, and specify page limitations for offers.
        (4) Limitation of source selection factors to--
            (A) cost to the Federal Government;
            (B) past experience and performance; and
            (C) quality of the content of the offer.
        (5) Evaluation of proposals by small teams of highly qualified 
    people over a period not greater than 30 days.
        (6) Restriction of competitions to sources determined capable 
    in a precompetition screening process, provided that the screening 
    process affords all interested sources a fair opportunity to be 
    considered.
        (7) Restriction of competitions to sources of preevaluated 
    products, provided that the preevaluation process affords all 
    interested sources a fair opportunity to be considered.
        (8) Alternative notice and publication requirements.
        (9) A process in which--
            (A) the competitive process is initiated by publication in 
        the Commerce Business Daily, or by dissemination through 
        FACNET, of a notice that--
                (i) contains a synopsis of the functional and 
            performance needs of the executive agency conducting the 
            test, and, for purposes of guidance only, other 
            specifications; and
                (ii) invites any interested source to submit 
            information or samples showing the suitability of its 
            product for meeting those needs, together with a price 
            quotation, or, if appropriate, showing the source's 
            technical capability, past performance, product 
            supportability, or other qualifications (including, as 
            appropriate, information regarding rates and other cost-
            related factors);
            (B) contracting officials develop a request for proposals 
        (including appropriate specifications and evaluation criteria) 
        after reviewing the submissions of interested sources and, if 
        the officials determine necessary, after consultation with 
        those sources; and
            (C) a contract is awarded after a streamlined competition 
        that is limited to all sources that timely provided product 
        information in response to the notice or, if appropriate, to 
        those sources determined most capable based on the 
        qualification-based factors included in an invitation to submit 
        information pursuant to subparagraph (A).
    (f) Measurable Test Criteria.--The Administrator shall require each 
agency conducting a test pursuant to subsection (a) to establish, to 
the maximum extent practicable, measurable criteria for evaluation of 
the effects of the procedure or technique to be tested.
    (g) Test Plan.--At least 270 days before a test may be conducted 
under this section, the Administrator shall--
        (1) provide a detailed test plan, including lists of any 
    regulations that are to be waived, and any written determination 
    under subsection (h)(1)(B) to the Committee on Government 
    Operations of the House of Representatives and the Committee on 
    Governmental Affairs of the Senate;
        (2) provide a copy of the plan to the appropriate authorization 
    and appropriations committees of the House of Representatives and 
    the Senate; and
        (3) publish the plan in the Federal Register and provide an 
    opportunity for public comment.
    (h) Waiver of Procurement Regulations.--(1) For purposes of a test 
conducted under subsection (a), the Administrator may waive--
        (A) any provision of the Federal Acquisition Regulation that is 
    not required by statute; and
        (B) any provision of the Federal Acquisition Regulation that is 
    required by a provision of law described in paragraph (2), the 
    waiver of which the Administrator determines in writing to be 
    necessary to conduct any test of any of the procedures described in 
    subsection (e).
    (2) The provisions of law referred to in paragraph (1) are as 
follows:
        (A) The following provisions of title 10, United States Code:
            (i) Section 2304.
            (ii) Section 2305.
            (iii) Section 2319.
        (B) Subsections (e), (f), and (g) of section 8 of the Small 
    Business Act (15 U.S.C. 637).
        (C) The following provisions of the Revised Statutes:
            (i) Section 3709 (41 U.S.C. 5).
            (ii) Section 3710 (41 U.S.C. 8).
            (iii) Section 3735 (41 U.S.C. 13).
        (D) The following provisions of the Federal Property and 
    Administrative Services Act of 1949:
            (i) Section 303 (41 U.S.C. 253).
            (ii) Section 303A (41 U.S.C. 253a).
            (iii) Section 303B (41 U.S.C. 253b).
            (iv) Section 303C (41 U.S.C. 253c).
            (v) Section 310 (41 U.S.C. 260).
        (E) The following provisions of the Office of Federal 
    Procurement Policy Act:
            (i) Section 4(6) (41 U.S.C. 403(6)).
            (ii) Section 18 (41 U.S.C. 416).
    (3) If the Administrator determines that the conduct of a test 
requires the waiver of a law not listed in paragraph (2) or requires 
approval of an estimated dollar amount not permitted under subsection 
(c)(4), the Administrator may propose legislation to authorize the 
waiver or grant the approval. Before proposing such legislation, the 
Administrator may provide and publish a test plan as described in 
subsection (g).
    (i) Report.--Not later than 6 months after completion of a test 
conducted under subsection (a), the Comptroller General shall submit to 
Congress a report for the test setting forth in detail the results of 
the test, including such recommendations as the Comptroller General 
considers appropriate.
    (j) Commencement and Expiration of Authority.--(1) The 
Administrator may not exercise the authority to conduct a test under 
subsection (a) in an agency and to award contracts under such a test 
before the date on which the head of the agency certifies to Congress 
under section 30A(a)(2) of the Office of Federal Procurement Policy Act 
that the agency has implemented a full FACNET capability.
    (2) The authority to conduct a test under subsection (a) in an 
agency and to award contracts under such a test shall expire 4 years 
after the date on which the head of the agency makes the certification 
referred to in paragraph (1). Contracts entered into before such 
authority expires in an agency pursuant to a test shall remain in 
effect, notwithstanding the expiration of the authority to conduct the 
test under this section.
    (k) Rule of Construction.--Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds for 
the tests conducted pursuant to subsection (a).

SEC. 5062. NASA MID-RANGE PROCUREMENT TEST PROGRAM.

    (a) In General.--The Administrator of the National Aeronautics and 
Space Administration (in this section referred to as the 
``Administrator'') may conduct a test of alternative notice and 
publication requirements for procurements conducted by the National 
Aeronautics and Space Administration. To the extent consistent with 
this section, such program shall be conducted consistent with section 
15 of the Office of Federal Procurement Policy Act (41 U.S.C. 413).
    (b) Applicability.--The test conducted under subsection (a) shall 
apply to acquisitions with an estimated annual total obligation of 
funds of $500,000 or less.
    (c) Limitation on Total Cost.--The total estimated life-cycle cost 
to the Federal Government for the test conducted under subsection (a) 
may not exceed $100,000,000.
    (d) Waiver of Procurement Regulations.--(1) In conducting the test 
under this section, the Administrator, with the approval of the 
Administrator for Federal Procurement Policy, may waive--
        (A) any provision of the Federal Acquisition Regulation that is 
    not required by statute; and
        (B) any provision of the Federal Acquisition Regulation that is 
    required by a provision of law described in paragraph (2), the 
    waiver of which the Administrator determines in writing to be 
    necessary to conduct the test.
    (2) The provisions of law referred to in paragraph (1) are as 
follows:
        (A) Subsections (e), (f), and (g) of section 8 of the Small 
    Business Act (15 U.S.C. 637).
        (B) Section 18 of the Office of Federal Procurement Policy Act 
    (41 U.S.C. 416).
    (e) Report.--Not later than 6 months after completion of the test 
conducted under subsection (a), the Comptroller General shall submit to 
Congress a report for the test setting forth in detail the results of 
the test, including such recommendations as the Comptroller General 
considers appropriate.
    (f) Expiration of Authority.--The authority to conduct the test 
under subsection (a) and to award contracts under such test shall 
expire 4 years after the date of the enactment of this Act. Contracts 
entered into before such authority expires shall remain in effect, 
notwithstanding the expiration of the authority to conduct the test 
under this section.
    (g) Rule of Construction.--Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds for 
the test conducted pursuant to subsection (a).

SEC. 5063. FEDERAL AVIATION ADMINISTRATION ACQUISITION PILOT PROGRAM.

    (a) Authority.--The Secretary of Transportation may conduct a test 
of alternative and innovative procurement procedures in carrying out 
acquisitions for one of the modernization programs under the Airway 
Capital Investment Plan prepared pursuant to section 44501(b) of title 
49, United States Code. In conducting such test, the Secretary shall 
consult with the Administrator for Federal Procurement Policy.
    (b) Pilot Program Implementation.--(1) The Secretary of 
Transportation should prescribe policies and procedures for the 
interaction of the program manager and the end user executive 
responsible for the requirement for the equipment acquired. Such 
policies and procedures should include provisions for enabling the end 
user executive to participate in acceptance testing.
    (2) Not later than 45 days after the date of enactment of this Act, 
the Secretary of Transportation shall identify for the pilot program 
quantitative measures and goals for reducing acquisition management 
costs.
    (3) The Secretary of Transportation shall establish for the pilot 
program a review process that provides senior acquisition officials 
with reports on the minimum necessary data items required to ensure the 
appropriate expenditure of funds appropriated for the program and 
that--
        (A) contain essential information on program results at 
    appropriate intervals, including the criteria to be used in 
    measuring the success of the program; and
        (B) reduce data requirements from the current program review 
    reporting requirements.
    (c) Special Authorities.--The authority provided by subsection (a) 
shall include authority for the Secretary of Transportation--
        (1) to apply any amendment or repeal of a provision of law made 
    in this Act to the pilot program before the effective date of such 
    amendment or repeal; and
        (2) to apply to a procurement of items other than commercial 
    items under such program--
            (A) any authority provided in this Act (or in an amendment 
        made by a provision of this Act) to waive a provision of law in 
        the case of commercial items, and
            (B) any exception applicable under this Act (or an 
        amendment made by a provision of this Act) in the case of 
        commercial items,
    before the effective date of such provision (or amendment) to the 
    extent that the Secretary determines necessary to test the 
    application of such waiver or exception to procurements of items 
    other than commercial items.
    (d) Applicability.--Subsection (c) applies with respect to--
        (1) a contract that is awarded or modified after the date 
    occurring 45 days after the date of the enactment of this Act; and
        (2) a contract that is awarded before such date and is to be 
    performed (or may be performed), in whole or in part, after such 
    date.
    (e) Procedures Authorized.--The test conducted under this section 
may include any of the following procedures:
        (1) Restriction of competitions to sources determined capable 
    in a precompetition screening process, provided that the screening 
    process affords all interested sources a fair opportunity to be 
    considered.
        (2) Restriction of competitions to sources of preevaluated 
    products, provided that the preevaluation process affords all 
    interested sources a fair opportunity to be considered.
        (3) Alternative notice and publication requirements.
        (4) A process in which--
            (A) the competitive process is initiated by publication in 
        the Commerce Business Daily, or by dissemination through 
        FACNET, of a notice that--
                (i) contains a synopsis of the functional and 
            performance needs of the executive agency conducting the 
            test, and, for purposes of guidance only, other 
            specifications; and
                (ii) invites any interested source to submit 
            information or samples showing the suitability of its 
            product for meeting those needs, together with a price 
            quotation, or, if appropriate, showing the source's 
            technical capability, past performance, product 
            supportability, or other qualifications (including, as 
            appropriate, information regarding rates and other cost-
            related factors);
            (B) contracting officials develop a request for proposals 
        (including appropriate specifications and evaluation criteria) 
        after reviewing the submissions of interested sources and, if 
        the officials determine necessary, after consultation with 
        those sources; and
            (C) a contract is awarded after a streamlined competition 
        that is limited to all sources that timely provided product 
        information in response to the notice or, if appropriate, to 
        those sources determined most capable based on the 
        qualification-based factors included in an invitation to submit 
        information pursuant to subparagraph (A).
    (f) Waiver of Procurement Regulations.--(1) In conducting the test 
under this section, the Secretary of Transportation, with the approval 
of the Administrator for Federal Procurement Policy, may waive--
        (A) any provision of the Federal Acquisition Regulation that is 
    not required by statute; and
        (B) any provision of the Federal Acquisition Regulation that is 
    required by a provision of law described in paragraph (2), the 
    waiver of which the Administrator determines in writing to be 
    necessary to test procedures authorized by subsection (e).
    (2) The provisions of law referred to in paragraph (1) are as 
follows:
        (A) Subsections (e), (f), and (g) of section 8 of the Small 
    Business Act (15 U.S.C. 637).
        (B) The following provisions of the Federal Property and 
    Administrative Services Act of 1949:
            (i) Section 303 (41 U.S.C. 253).
            (ii) Section 303A (41 U.S.C. 253a).
            (iii) Section 303B (41 U.S.C. 253b).
            (iv) Section 303C (41 U.S.C. 253c).
        (C) The following provisions of the Office of Federal 
    Procurement Policy Act:
            (i) Section 4(6) (41 U.S.C. 403(6)).
            (ii) Section 18 (41 U.S.C. 416).
    (g) Definition.--In this section, the term ``commercial item'' has 
the meaning provided that term in section 4(12) of the Office of 
Federal Procurement Policy Act.
    (h) Expiration of Authority.--The authority to conduct the test 
under subsection (a) and to award contracts under such test shall 
expire 4 years after the date of the enactment of this Act. Contracts 
entered into before such authority expires shall remain in effect, 
notwithstanding the expiration of the authority to conduct the test 
under this section.
    (i) Rule of Construction.--Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds for 
the test conducted pursuant to subsection (a).

SEC. 5064. DEPARTMENT OF DEFENSE ACQUISITION PILOT PROGRAMS.

    (a) In General.--The Secretary of Defense is authorized to 
designate the following defense acquisition programs for participation 
in the defense acquisition pilot program authorized by section 809 of 
the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 
2430 note):
        (1) Fire support combined arms tactical trainer (fscatt).--The 
    Fire Support Combined Arms Tactical Trainer program with respect to 
    all contracts directly related to the procurement of a training 
    simulation system (including related hardware, software, and 
    subsystems) to perform collective training of field artillery 
    gunnery team components, with development of software as required 
    to generate the training exercises and component interfaces.
        (2) Joint direct attack munition (jdam i).--The Joint Direct 
    Attack Munition program with respect to all contracts directly 
    related to the development and procurement of a strap-on guidance 
    kit, using an inertially guided, Global Positioning System updated 
    guidance kit to enhance the delivery accuracy of 1000-pound and 
    2000-pound bombs in inventory.
        (3) Joint primary aircraft training system (jpats).--The Joint 
    Primary Aircraft Training System (JPATS) with respect to all 
    contracts directly related to the acquisition of a new primary 
    trainer aircraft to fulfill Air Force and Navy joint undergraduate 
    aviation training requirements, and an associated ground-based 
    training system consisting of air crew training devices 
    (simulators), courseware, a Training Management System, and 
    contractor support for the life of the system.
        (4) Commercial-derivative aircraft (cda).--
            (A) All contracts directly related to the acquisition or 
        upgrading of commercial-derivative aircraft for use in meeting 
        airlift and tanker requirements and the air vehicle component 
        for airborne warning and control systems.
            (B) For purposes of this paragraph, the term ``commercial-
        derivative aircraft'' means any of the following:
                (i) Any aircraft (including spare parts, support 
            services, support equipment, technical manuals, and data 
            related thereto) that is or was of a type customarily used 
            in the course of normal business operations for other than 
            Federal Government purposes, that has been issued a type 
            certificate by the Administrator of the Federal Aviation 
            Administration, and that has been sold or leased for use in 
            the commercial marketplace or that has been offered for 
            sale or lease for use in the commercial marketplace.
                (ii) Any aircraft that, but for modifications of a type 
            customarily available in the commercial marketplace, or 
            minor modifications made to meet Federal Government 
            requirements, would satisfy or would have satisfied the 
            criteria in subclause (I).
                (iii) For purposes of a potential complement or 
            alternative to the C-17 program, any nondevelopmental 
            airlift aircraft, other than the C-17 or any aircraft 
            derived from the C-17, shall be considered a commercial-
            derivative aircraft.
        (5) Commercial-derivative engine (cde).--The commercial 
    derivative engine program with respect to all contracts directly 
    related to the acquisition of (A) commercial derivative engines 
    (including spare engines and upgrades), logistics support 
    equipment, technical orders, management data, and spare parts, and 
    (B) commercially derived engines for use in supporting the purchase 
    of commercial-derivative aircraft for use in airlift and tanker 
    requirements (including engine replacement and upgrades) and the 
    air vehicle component for airborne warning and control systems. For 
    purposes of a potential complement or alternative to the C-17 
    program, any nondevelopmental airlift aircraft engine shall be 
    considered a commercial-derivative engine.
    (b) Pilot Program Implementation.--(1) The text of section 833 of 
the National Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 107 Stat. 1716) is amended to read as follows:
    ``(a) Mission-Oriented Program Management.--In the exercise of the 
authority provided in section 809 of the National Defense Authorization 
Act for Fiscal Year 1991 (10 U.S.C. 2430 note), the Secretary of 
Defense should propose for one or more of the defense acquisition 
programs covered by the Defense Acquisition Pilot Program to utilize 
the concept of mission-oriented program management.
    ``(b) Policies and Procedures.--In the case of each defense 
acquisition program covered by the Defense Acquisition Pilot Program, 
the Secretary of Defense should prescribe policies and procedures for 
the interaction of the program manager and the commander of the 
operational command (or a representative) responsible for the 
requirement for the equipment acquired, and for the interaction with 
the commanders of the unified and specified combatant commands. Such 
policies and procedures should include provisions for enabling the user 
commands to participate in acceptance testing.''.
    (2) The text of section 837 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1718) is 
amended to read as follows:
    ``The Secretary of Defense shall take any additional actions that 
the Secretary considers necessary to waive regulations not required by 
statute that affect the efficiency of the contracting process within 
the Department of Defense. Such actions shall include, in the 
Secretary's discretion, developing methods to streamline the 
procurement process, streamlining the period for entering into 
contracts, and defining alternative techniques to reduce reliance on 
military specifications and standards, in contracts for the defense 
acquisition programs participating in the Defense Acquisition Pilot 
Program.''.
    (3) The text of section 838 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1718) is 
amended to read as follows:
    ``For at least one participating defense acquisition program for 
which a determination is made to make payments for work in progress 
under the authority of section 2307 of title 10, United States Code, 
the Secretary of Defense should define payment milestones on the basis 
of quantitative measures of results.''.
    (4) Not later than 45 days after the date of the enactment of the 
Federal Acquisition Streamlining Act of 1994, the Secretary of Defense 
shall identify for each defense acquisition program participating in 
the pilot program quantitative measures and goals for reducing 
acquisition management costs.
    (5) For each defense acquisition program participating in the pilot 
program, the Secretary of Defense shall establish a review process that 
provides senior acquisition officials with reports on the minimum 
necessary data items required to ensure the appropriate expenditure of 
funds appropriated for the program and that--
        (A) contain essential information on program results at 
    appropriate intervals, including the criteria to be used in 
    measuring the success of the program; and
        (B) reduce data requirements from the current program review 
    reporting requirements.
    (c) Special Authority.--The authority delegated under subsection 
(a) may include authority for the Secretary of Defense--
        (1) to apply any amendment or repeal of a provision of law made 
    in this Act to the pilot programs before the effective date of such 
    amendment or repeal; and
        (2) to apply to a procurement of items other than commercial 
    items under such programs--
            (A) any authority provided in this Act (or in an amendment 
        made by a provision of this Act) to waive a provision of law in 
        the case of commercial items, and
            (B) any exception applicable under this Act (or an 
        amendment made by a provision of this Act) in the case of 
        commercial items,
    before the effective date of such provision (or amendment) to the 
    extent that the Secretary determines necessary to test the 
    application of such waiver or exception to procurements of items 
    other than commercial items.
    (d) Applicability.--(1) Subsection (c) applies with respect to--
        (A) a contract that is awarded or modified during the period 
    described in paragraph (2); and
        (B) a contract that is awarded before the beginning of such 
    period and is to be performed (or may be performed), in whole or in 
    part, during such period.
    (2) The period referred to in paragraph (1) is the period that 
begins 45 days after the date of the enactment of this Act and ends on 
September 30, 1998.
    (e) Rule of Construction.--Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds for 
the programs designated for participation in the defense acquisition 
pilot program under the authority of subsection (a).

                       Subtitle D--Miscellaneous

SEC. 5091. VENDOR AND EMPLOYEE EXCELLENCE AWARDS.

    Section 6(d) of the Office of Federal Procurement Policy Act (41 
U.S.C. 405(d)) is amended--
        (1) by striking out ``and'' at the end of paragraph (7);
        (2) by redesignating paragraph (8) as paragraph (12); and
        (3) by adding at the end the following new paragraphs:
        ``(8) providing for a Government-wide award to recognize and 
    promote vendor excellence;
        ``(9) providing for a Government-wide award to recognize and 
    promote excellence in officers and employees of the Federal 
    Government serving in procurement-related positions;''.

SEC. 5092. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED FOR 
              ACQUISITION REGULATIONS.

    (a) Increased Period.--Section 22(a) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 418b) is amended--
        (1) by striking out ``30 days'' and inserting in lieu thereof 
    ``60 days''; and
        (2) by adding at the end the following: ``Notwithstanding the 
    preceding sentence, such 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 in no event may that effective date be less than 30 days 
    after the publication date.''.
    (b) Technical Amendment.--Section 22(d) of such Act is amended by 
designating the second sentence as paragraph (3).

SEC. 5093. SENSE OF CONGRESS ON NEGOTIATED RULEMAKING.

    (a) Findings.--The Congress finds the following:
        (1) The use of negotiated rulemaking or similar policy 
    discussion group techniques can be an appropriate tool for--
            (A) fostering effective implementation of, and compliance 
        with, laws and regulations;
            (B) avoiding litigation; and
            (C) achieving more productive and equitable relationships 
        between the Federal Government and the regulated segments of 
        the private sector.
        (2) The use of negotiated rulemaking or similar techniques in 
    Federal procurement regulations could be appropriate given the 
    extreme complexity and intricate interactions between buyer and 
    seller in Federal procurements.
    (b) Sense of Congress.--It is the sense of Congress that, in 
prescribing acquisition regulations, the Federal Acquisition Regulatory 
Council should consider using negotiated rulemaking procedures in 
appropriate circumstances in accordance with sections 561 through 570 
of title 5, United States Code, or similar techniques intended to 
achieve the benefits described in subsection (a)(1).

              TITLE VI--OTHER PROCUREMENT-RELATED MATTERS

SEC. 6001. POST-EMPLOYMENT RULES.

    (a) Repeal.--(1) Section 801 of title 37, United States Code, is 
repealed.
    (2) The table of sections for chapter 15 of title 37, United States 
Code, is amended by striking out the item relating to section 801.
    (b) Suspension of Effect of Certain Provision of Law.--Section 281 
of title 18, United States Code, shall not be effective during the 
period beginning on the date of the enactment of this Act and ending at 
the end of December 31, 1996. Such section shall not apply after that 
date to any relationship otherwise punishable under such section that 
existed during such period.

SEC. 6002. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.

    (a) Amendment of OFPP Act.--The Office of Federal Procurement 
Policy Act, as amended by section 1092, is further amended by inserting 
after section 22 the following new section 23:

``SEC. 23. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.

    ``(a) Limitation on Payment for Advisory and Assistance Services.--
(1) No person who is not a person described in subsection (b) 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 (b) with adequate training and 
capabilities to perform such evaluations and analyses are not readily 
available within the agency or another Federal agency, as determined in 
accordance with standards and procedures prescribed in the Federal 
Acquisition Regulation.
    ``(2) In the administration of this subsection, the head of each 
executive agency shall determine in accordance with the standards and 
procedures set forth in the Federal Acquisition Regulation whether--
        ``(A) a sufficient number of personnel described in subsection 
    (b) within 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
        ``(B) the readily available personnel have the training and 
    capabilities necessary to perform the evaluation or analysis.
    ``(b) Covered Personnel.--For purposes of subsection (a), the 
personnel described in this subsection are as follows:
        ``(1) An employee, as defined in section 2105 of title 5, 
    United States Code.
        ``(2) A member of the Armed Forces of the United States.
        ``(3) A person assigned to a Federal agency pursuant to 
    subchapter VI of chapter 33 of title 5, United States Code.
    ``(c) Rule of Construction.--Nothing in this section is intended to 
affect the relationship between the Federal Government and a federally 
funded research and development center.''.
    (b) Requirement for Guidance and Regulations.--The Federal 
Acquisition Regulatory Council established by section 25(a) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) shall--
        (1) review part 37 of title 48 of the Code of Federal 
    Regulations as it relates to the use of advisory and assistance 
    services; and
        (2) provide guidance and promulgate regulations regarding--
            (A) what actions Federal agencies are required to take to 
        determine whether expertise is readily available within the 
        Federal Government before contracting for advisory and 
        technical services to conduct acquisitions; and
            (B) the manner in which personnel with expertise may be 
        shared with agencies needing expertise for such acquisitions.

SEC. 6003. REPEAL OF EXECUTED REQUIREMENT FOR STUDY AND REPORT.

    Section 17 of the Office of Federal Procurement Policy Act (41 
U.S.C. 415) is repealed.

SEC. 6004. INTERESTS OF MEMBERS OF CONGRESS.

    Section 3741 of the Revised Statutes (41 U.S.C. 22) is amended to 
read as follows:
    ``No member of Congress shall be admitted to any share or part of 
any contract or agreement made, entered into, or accepted by or on 
behalf of the United States, or to any benefit to arise thereupon.''.

SEC. 6005. WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR EM- PLOYEES OF 
              DEPARTMENT OF DEFENSE, COAST GUARD, AND NATIONAL 
              AERONAUTICS AND SPACE ADMINISTRATION.

    (a) Whistleblower Protections for Contractor Employees.--Section 
2409 of title 10, United States Code, is amended to read as follows:

``Sec. 2409. Contractor employees: protection from reprisal for 
            disclosure of certain information

    ``(a) 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 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).
    ``(b) Investigation of Complaints.--A person who believes that the 
person has been subjected to a reprisal prohibited by subsection (a) 
may submit a complaint to the Inspector General of an agency. Unless 
the Inspector General determines that the complaint is frivolous, the 
Inspector General shall investigate the complaint and, upon completion 
of such investigation, submit a report of the findings of the 
investigation to the person, the contractor concerned, and the head of 
the agency.
    ``(c) Remedy and Enforcement Authority.--(1) If the head of the 
agency determines that a contractor has subjected a person to a 
reprisal prohibited by subsection (a), the head of the agency may take 
one or more of the following actions:
        ``(A) Order the contractor to take affirmative action to abate 
    the reprisal.
        ``(B) Order the contractor to reinstate the person to the 
    position that the person 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 
    person in that position if the reprisal had not been taken.
        ``(C) Order the contractor to pay the complainant an amount 
    equal to the aggregate amount of all costs and expenses (including 
    attorneys' fees and expert witnesses' fees) that were reasonably 
    incurred by the complainant for, or in connection with, bringing 
    the complaint regarding the reprisal, as determined by the head of 
    the agency.
    ``(2) Whenever a person fails to comply with an order issued under 
paragraph (1), the head of the agency shall file an action for 
enforcement of such order in the United States district court for a 
district in which the reprisal was found to have occurred. In any 
action brought under this paragraph, the court may grant appropriate 
relief, including injunctive relief and compensatory and exemplary 
damages.
    ``(3) Any person adversely affected or aggrieved by an order issued 
under paragraph (1) may obtain review of the order's conformance with 
this subsection, and any 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. No petition seeking 
such review may be filed more than 60 days after issuance of the order 
by the head of the agency. Review shall conform to chapter 7 of title 
5.
    ``(d) Construction.--Nothing in this section may be construed to 
authorize the discharge of, demotion of, or discrimination against an 
employee for a disclosure other than a disclosure protected by 
subsection (a) or to modify or derogate from a right or remedy 
otherwise available to the employee.
    ``(e) Definitions.--In this section:
        ``(1) The term `agency' means an agency named in section 2303 
    of this title.
        ``(2) The term `head of an agency' has the meaning provided by 
    section 2302(1) of this title.''.
        ``(3) The term `contract' means a contract awarded by the head 
    of an agency.
        ``(4) The term `contractor' means a person awarded a contract 
    with an agency.
        ``(5) The term `Inspector General' means an Inspector General 
    appointed under the Inspector General Act of 1978.''.
    (b) Related Law.--(1) Section 2409a of title 10, United States 
Code, is repealed.
    (2) The table of sections at the beginning of chapter 141 of such 
title is amended by striking out the item relating to section 2409a.

SEC. 6006. WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR EMP- LOYEES OF 
              CIVILIAN AGENCIES.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the 
following new section:

``SEC. 315. CONTRACTOR EMPLOYEES: PROTECTION FROM REPRISAL FOR 
              DISCLOSURE OF CERTAIN INFORMATION.

    ``(a) 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).
    ``(b) Investigation of Complaints.--A person who believes that the 
person has been subjected to a reprisal prohibited by subsection (a) 
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, 
upon completion of such investigation, submit a report of the findings 
of the investigation to the person, the contractor concerned, and the 
head of the agency. In the case of an executive agency that 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.
    ``(c) Remedy and Enforcement Authority.--(1) If the head of an 
executive agency determines that a contractor has subjected a person to 
a reprisal prohibited by subsection (a), the head of the executive 
agency may take one or more of the following actions:
        ``(A) Order the contractor to take affirmative action to abate 
    the reprisal.
        ``(B) Order the contractor to reinstate the person to the 
    position that the person 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 
    person in that position if the reprisal had not been taken.
        ``(C) Order the contractor to pay the complainant an amount 
    equal to the aggregate amount of all costs and expenses (including 
    attorneys' fees and expert witnesses' fees) that were reasonably 
    incurred by the complainant for, or in connection with, bringing 
    the complaint regarding the reprisal, as determined by the head of 
    the executive agency.
    ``(2) Whenever a person fails to comply with an order issued under 
paragraph (1), the head of the executive agency shall file an action 
for enforcement of such order in the United States district court for a 
district in which the reprisal was found to have occurred. In any 
action brought under this paragraph, the court may grant appropriate 
relief, including injunctive relief and compensatory and exemplary 
damages.
    ``(3) Any person adversely affected or aggrieved by an order issued 
under paragraph (1) may obtain review of the order's conformance with 
this subsection, and any 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. No petition seeking 
such review may be filed more than 60 days after issuance of the order 
by the head of the agency. Review shall conform to chapter 7 of title 
5, United States Code.
    ``(d) Construction.--Nothing in this section may be construed to 
authorize the discharge of, demotion of, or discrimination against an 
employee for a disclosure other than a disclosure protected by 
subsection (a) or to modify or derogate from a right or remedy 
otherwise available to the employee.
    ``(e) Definitions.--In this section:
        ``(1) The term `contract' means a contract awarded by the head 
    of an executive agency.
        ``(2) The term `contractor' means a person awarded a contract 
    with an executive agency.
        ``(3) The term `Inspector General' means an Inspector General 
    appointed under the Inspector General Act of 1978.''.

SEC. 6007. COMPTROLLER GENERAL REVIEW OF THE PROVISION OF LEGAL ADVICE 
              FOR INSPECTORS GENERAL.

    (a) Review and Report Required.--Not later than March 1, 1995, the 
Comptroller General of the United States shall--
        (1) conduct a review of the independence of the legal services 
    being provided to Inspectors General appointed under the Inspector 
    General Act of 1978; and
        (2) submit to Congress a report on the results of the review.
    (b) Matters Required for Report.--The report shall include the 
following matters:
        (1) With respect to each department or agency of the Federal 
    Government that has an Inspector General appointed in accordance 
    with the Inspector General Act of 1978 whose only or principal 
    source of legal advice is the general counsel or other chief legal 
    officer of the department or agency, an assessment of the extent of 
    the independence of the legal advisers providing advice to the 
    Inspector General.
        (2) A comparison of the findings under the assessment referred 
    to in paragraph (1) with findings on the same matters with respect 
    to each Inspector General whose source of legal advice is legal 
    counsel accountable solely to the Inspector General.

SEC. 6008. COST SAVINGS FOR OFFICIAL TRAVEL.

    (a) Guidelines.--The Administrator of the General Services 
Administration shall issue guidelines to ensure that agencies promote, 
encourage, and facilitate the use of frequent traveler programs offered 
by airlines, hotels, and car rental vendors by Federal employees who 
engage in official air travel, for the purpose of realizing to the 
maximum extent practicable cost savings for official travel.
    (b) Requirement.--Any awards granted under such a frequent traveler 
program accrued through official travel shall be used only for official 
travel.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Administrator shall report to Congress on 
efforts to promote the use of frequent traveler programs by Federal 
employees.

SEC. 6009. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

    Federal agencies shall resolve or take corrective action on all 
Office of Inspector General audit report findings within a maximum of 
six months after their issuance, or, in the case of audits performed by 
non-Federal auditors, six months after receipt of the report by the 
Federal Government.

            TITLE VII--SMALL BUSINESS AND SOCIOECONOMIC LAWS
                    Subtitle A--Small Business Laws

SEC. 7101. REPEAL OF CERTAIN REQUIREMENTS.

    (a) Set-Aside Priority.--Section 15 of the Small Business Act (15 
U.S.C. 644) is amended by striking out subsections (e) and (f).
    (b) Certificate of Competence.--Section 804 of Public Law 102-484 
(106 Stat. 2447; 10 U.S.C. 2305 note) is repealed.

SEC. 7102. CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS.

    (a) Procurement Procedures Authorized.--(1) To facilitate the 
attainment of a goal for the participation of small business concerns 
owned and controlled by socially and economically disadvantaged 
individuals that is established for a Federal agency pursuant to 
section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)), the 
head of the agency may enter into contracts using--
        (A) less than full and open competition by restricting the 
    competition for such awards to small business concerns owned and 
    controlled by socially and economically disadvantaged individuals 
    described in subsection (d)(3)(C) of section 8 of the Small 
    Business Act (15 U.S.C. 637); and
        (B) a price evaluation preference not in excess of 10 percent 
    when evaluating an offer received from such a small business 
    concern as the result of an unrestricted solicitation.
    (2) Paragraph (1) does not apply to the Department of Defense, the 
Coast Guard, and the National Aeronautics and Space Administration.
    (b) Implementation Through the Federal Acquisition Regulation.--
        (1) In general.--The Federal Acquisition Regulation shall be 
    revised to provide for uniform implementation of the authority 
    provided in subsection (a).
        (2) Matters to be addressed.--The revisions of the Federal 
    Acquisition Regulation made pursuant to paragraph (1) shall 
    include--
            (A) conditions for the use of advance payments;
            (B) provisions for contract payment terms that provide 
        for--
                (i) accelerated payment for work performed during the 
            period for contract performance; and
                (ii) full payment for work performed;
            (C) guidance on how contracting officers may use, in 
        solicitations for various classes of products or services, a 
        price evaluation preference pursuant to subsection (a)(1)(B), 
        to provide a reasonable advantage to small business concerns 
        owned and controlled by socially and economically disadvantaged 
        individuals without effectively eliminating any participation 
        of other small business concerns; and
            (D)(i) procedures for a person to request the head of a 
        Federal agency to determine whether the use of competitions 
        restricted to small business concerns owned and controlled by 
        socially and economically disadvantaged individuals at a 
        contracting activity of such agency has caused a particular 
        industry category to bear a disproportionate share of the 
        contracts awarded to attain the goal established for that 
        contracting activity; and
            (ii) guidance for limiting the use of such restricted 
        competitions in the case of any contracting activity and class 
        of contracts determined in accordance with such procedures to 
        have caused a particular industry category to bear a 
        disproportionate share of the contracts awarded to attain the 
        goal established for that contracting activity.
    (c) Termination.--This section shall cease to be effective at the 
end of September 30, 2000.

SEC. 7103. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
              SMALL BUSINESS SUBCONTRACTING PLANS.

    Section 834(e) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 note) is amended 
by striking out ``September 30, 1994.'' in the second sentence and 
inserting in lieu thereof ``September 30, 1998.''.

SEC. 7104. SMALL BUSINESS PROCUREMENT ADVISORY COUNCIL.

    (a) Establishment.--There is hereby established an interagency 
council to be known as the ``Small Business Procurement Advisory 
Council'' (hereinafter in this section referred to as the ``Council'').
    (b) Duties.--The duties of the Council are--
        (1) to develop positions on proposed procurement regulations 
    affecting the small business community; and
        (2) to submit comments reflecting such positions to appropriate 
    regulatory authorities.
    (c) Membership.--The Council shall be composed of the following 
members:
        (1) The Administrator of the Small Business Administration (or 
    the designee of the Administrator).
        (2) The Director of the Minority Business Development Agency.
        (3) The head of each Office of Small and Disadvantaged Business 
    Utilization (established under section 15(k) of the Small Business 
    Act (15 U.S.C. 644(k)) in each Federal agency having procurement 
    powers.
    (d) Chairman.--The Council shall be chaired by the Administrator of 
the Small Business Administration.
    (e) Meetings.--The Council shall meet at the call of the chairman 
as necessary to consider proposed procurement regulations affecting the 
small business community.
    (f) Consideration of Council Comments.--The Federal Acquisition 
Regulatory Council and other appropriate regulatory authorities shall 
consider comments submitted in a timely manner pursuant to subsection 
(b)(2).

SEC. 7105. EXTENSION OF DEFENSE CONTRACT GOAL TO COAST GUARD AND 
              NATIONAL AERONAUTICS AND SPACE ADMINISTRATION.

    Section 2323 of title 10, United States Code, is amended to read as 
follows:

``Sec. 2323. Contract goal for small disadvantaged businesses and 
            certain institutions of higher education

    ``(a) Goal.--(1) Except as provided in subsection (d), a goal of 5 
percent of the amount described in subsection (b) shall be the 
objective of the Department of Defense, the Coast Guard, and the 
National Aeronautics and Space Administration in each fiscal year for 
the total combined amount obligated for contracts and subcontracts 
entered into with--
        ``(A) small business concerns, including mass media and 
    advertising firms, owned and controlled by socially and 
    economically disadvantaged individuals (as such term is used in 
    section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
    regulations issued under that section), the majority of the 
    earnings of which directly accrue to such individuals;
        ``(B) historically Black colleges and universities, including 
    any nonprofit research institution that was an integral part of 
    such a college or university before November 14, 1986; and
        ``(C) minority institutions (as defined in section 1046(3) of 
    the Higher Education Act of 1965 (20 U.S.C. 1135d-5(3)), which, for 
    the purposes of this section, shall include Hispanic-serving 
    institutions (as defined in section 316(b)(1) of such Act (20 
    U.S.C. 1059c(b)(1)).
    ``(2) The head of the agency shall establish a specific goal within 
the overall 5 percent goal for the award of prime contracts and 
subcontracts to historically Black colleges and universities and 
minority institutions in order to increase the participation of such 
colleges and universities in the program provided for by this section.
    ``(3) The Federal Acquisition Regulation (issued under section 
25(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 
421(c)) shall provide procedures or guidelines for contracting officers 
to set goals which agency prime contractors that are required to submit 
subcontracting plans under section 8(d)(4)(B) of the Small Business Act 
(15 U.S.C. 637(d)(4)(B)) in furtherance of the agency's program to meet 
the 5 percent goal specified in paragraph (1) should meet in awarding 
subcontracts, including subcontracts to minority-owned media, to 
entities described in that paragraph.
  ``(b) Amount.--With respect to the Department of Defense, the 
requirements of subsection (a) for any fiscal year apply to the 
combined total of the following amounts:
        ``(A) Funds obligated for contracts entered into with the 
    Department of Defense for such fiscal year for procurement.
        ``(B) Funds obligated for contracts entered into with the 
    Department of Defense for such fiscal year for research, 
    development, test, and evaluation.
        ``(C) Funds obligated for contracts entered into with the 
    Department of Defense for such fiscal year for military 
    construction.
        ``(D) Funds obligated for contracts entered into with the 
    Department of Defense for operation and maintenance.
    ``(2) With respect to the Coast Guard, the requirements of 
subsection (a) for any fiscal year apply to the total value of all 
prime contract and subcontract awards entered into by the Coast Guard 
for such fiscal year.
    ``(3) With respect to the National Aeronautics and Space 
Administration, the requirements of subsection (a) for any fiscal year 
apply to the total value of all prime contract and subcontract awards 
entered into by the National Aeronautics and Space Administration for 
such fiscal year.
    ``(c) Types of Assistance.--(1) To attain the goal specified in 
subsection (a)(1), the head of an agency shall provide technical 
assistance to the entities referred to in that subsection and, in the 
case of historically Black colleges and universities and minority 
institutions, shall also provide infrastructure assistance.
    ``(2) Technical assistance provided under this section shall 
include information about the program, advice about agency procurement 
procedures, instruction in preparation of proposals, and other such 
assistance as the head of the agency considers appropriate. If the 
resources of the agency are inadequate to provide such assistance, the 
head of the agency may enter into contracts with minority private 
sector entities with experience and expertise in the design, 
development, and delivery of technical assistance services to eligible 
individuals, business firms and institutions, acquisition agencies, and 
prime contractors. Agency contracts with such entities shall be awarded 
annually, based upon, among other things, the number of minority small 
business concerns, historically Black colleges and universities, and 
minority institutions that each such entity brings into the program.
    ``(3) Infrastructure assistance provided by the Department of 
Defense under this section to historically Black colleges and 
universities and to minority institutions may include programs to do 
the following:
        ``(A) Establish and enhance undergraduate, graduate, and 
    doctoral programs in scientific disciplines critical to the 
    national security functions of the Department of Defense.
        ``(B) Make Department of Defense personnel available to advise 
    and assist faculty at such colleges and universities in the 
    performance of defense research and in scientific disciplines 
    critical to the national security functions of the Department of 
    Defense.
        ``(C) Establish partnerships between defense laboratories and 
    historically Black colleges and universities and minority 
    institutions for the purpose of training students in scientific 
    disciplines critical to the national security functions of the 
    Department of Defense.
        ``(D) Award scholarships, fellowships, and the establishment of 
    cooperative work-education programs in scientific disciplines 
    critical to the national security functions of the Department of 
    Defense.
        ``(E) Attract and retain faculty involved in scientific 
    disciplines critical to the national security functions of the 
    Department of Defense.
        ``(F) Equip and renovate laboratories for the performance of 
    defense research.
        ``(G) Expand and equip Reserve Officer Training Corps 
    activities devoted to scientific disciplines critical to the 
    national security functions of the Department of Defense.
        ``(H) Provide other assistance as the Secretary determines 
    appropriate to strengthen scientific disciplines critical to the 
    national security functions of the Department of Defense or the 
    college infrastructure to support the performance of defense 
    research.
    ``(4) The head of the agency shall, to the maximum extent 
practical, carry out programs under this section at colleges, 
universities, and institutions that agree to bear a substantial portion 
of the cost associated with the programs.
    ``(d) Applicability.--Subsection (a) does not apply to the 
Department of Defense--
        ``(1) to the extent to which the Secretary of Defense 
    determines that compelling national security considerations require 
    otherwise; and
        ``(2) if the Secretary notifies Congress of such determination 
    and the reasons for such determination.
    ``(e) Competitive Procedures and Advance Payments.--To attain the 
goal of subsection (a):
        ``(1)(A) The head of the agency shall--
            ``(i) ensure that substantial progress is made in 
        increasing awards of agency contracts to entities described in 
        subsection (a)(1);
            ``(ii) exercise his utmost authority, resourcefulness, and 
        diligence;
            ``(iii) in the case of the Department of Defense, actively 
        monitor and assess the progress of the military departments, 
        Defense Agencies, and prime contractors of the Department of 
        Defense in attaining such goal; and
            ``(iv) in the case of the Coast Guard and the National 
        Aeronautics and Space Administration, actively monitor and 
        assess the progress of the prime contractors of the agency in 
        attaining such goal.
        ``(B) In making the assessment under clauses (iii) and (iv) of 
    subparagraph (A), the head of the agency shall evaluate the extent 
    to which use of the authority provided in paragraphs (2) and (3) 
    and compliance with the requirement in paragraph (4) is effective 
    for facilitating the attainment of the goal.
        ``(2) To the extent practicable and when necessary to 
    facilitate achievement of the 5 percent goal described in 
    subsection (a), the head of an agency shall make advance payments 
    under section 2307 of this title to contractors described in 
    subsection (a). The Federal Acquisition Regulation shall provide 
    guidance to contracting officers for making advance payments to 
    entities described in subsection (a)(1) under such section.
        ``(3) To the extent practicable and when necessary to 
    facilitate achievement of the 5 percent goal described in 
    subsection (a), the head of an agency may enter into contracts 
    using less than full and open competitive procedures (including 
    awards under section 8(a) of the Small Business Act) and partial 
    set asides for entities described in subsection (a)(1), but shall 
    pay a price not exceeding fair market cost by more than 10 percent 
    in payment per contract to contractors or subcontractors described 
    in subsection (a). The head of an agency shall adjust the 
    percentage specified in the preceding sentence for any industry 
    category if available information clearly indicates that 
    nondisadvantaged small business concerns in such industry category 
    are generally being denied a reasonable opportunity to compete for 
    contracts because of the use of that percentage in the application 
    of this paragraph.
        ``(4) To the extent practicable, the head of an agency shall 
    maximize the number of minority small business concerns, 
    historically Black colleges and universities, and minority 
    institutions participating in the program.
        ``(5) Each head of an agency shall prescribe regulations which 
    provide for the following:
            ``(A) Procedures or guidance for contracting officers to 
        provide incentives for prime contractors referred to in 
        subsection (a)(3) to increase subcontractor awards to entities 
        described in subsection (a)(1).
            ``(B) A requirement that contracting officers emphasize the 
        award of contracts to entities described in subsection (a)(1) 
        in all industry categories, including those categories in which 
        such entities have not traditionally dominated.
            ``(C) Guidance to agency personnel on the relationship 
        among the following programs:
                ``(i) The program implementing this section.
                ``(ii) The program established under section 8(a) of 
            the Small Business Act (15 U.S.C. 637(a)).
                ``(iii) The small business set-aside program 
            established under section 15(a) of the Small Business Act 
            (15 U.S.C. 644(a)).
            ``(D) With respect to an agency procurement which is 
        reasonably likely to be set aside for entities described in 
        subsection (a)(1), a requirement that (to the maximum extent 
        practicable) the procurement be designated as such a set-aside 
        before the solicitation for the procurement is issued.
            ``(E) Policies and procedures which, to the maximum extent 
        practicable, will ensure that current levels in the number or 
        dollar value of contracts awarded under the program established 
        under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) 
        and under the small business set-aside program established 
        under section 15(a) of the Small Business Act (15 U.S.C. 
        644(a)) are maintained and that every effort is made to provide 
        new opportunities for contract awards to eligible entities, in 
        order to meet the goal of subsection (a).
            ``(F) Implementation of this section in a manner which will 
        not alter the procurement process under the program established 
        under section 8(a) of the Small Business Act (15 U.S.C. 
        637(a)).
            ``(G) A requirement that one factor used in evaluating the 
        performance of a contracting officer be the ability of the 
        officer to increase contract awards to entities described in 
        subsection (a)(1).
            ``(H) Increased technical assistance to entities described 
        in subsection (a)(1).
    ``(f) Penalties and Regulations Relating to Status.--(1) Whoever 
for the purpose of securing a contract or subcontract under subsection 
(a) misrepresents the status of any concern or person as a small 
business concern owned and controlled by a minority (as described in 
subsection (a)), shall be punished by imprisonment for not more than 
one year, or a fine under title 18, or both.
    ``(2) The Federal Acquisition Regulation shall prohibit awarding a 
contract under this section to an entity described in subsection (a)(1) 
unless the entity agrees to comply with the requirements of section 
15(o)(1) of the Small Business Act (15 U.S.C. 644(o)(1)).
    ``(g) Industry Categories.--(1) To the maximum extent practicable, 
the head of the agency shall--
        ``(A) ensure that no particular industry category bears a 
    disproportionate share of the contracts awarded to attain the goal 
    established by subsection (a); and
        ``(B) ensure that contracts awarded to attain the goal 
    established by subsection (a) are made across the broadest possible 
    range of industry categories.
    ``(2) Under procedures prescribed by the head of the agency, a 
person may request the Secretary to determine whether the use of small 
disadvantaged business set asides by a contracting activity of the 
agency has caused a particular industry category to bear a 
disproportionate share of the contracts awarded to attain the goal 
established for that contracting activity for the purposes of this 
section. Upon making a determination that a particular industry 
category is bearing a disproportionate share, the head of the agency 
shall take appropriate actions to limit the contracting activity's use 
of set asides in awarding contracts in that particular industry 
category.
    ``(h) Compliance With Subcontracting Plan Requirements.--(1) The 
Federal Acquisition Regulation shall contain regulations to ensure that 
potential contractors submitting sealed bids or competitive proposals 
to the agency for procurement contracts to be awarded under the program 
provided for by this section are complying with applicable 
subcontracting plan requirements of section 8(d) of the Small Business 
Act (15 U.S.C. 637(d)).
    ``(2) The regulations required by paragraph (1) shall ensure that, 
with respect to a sealed bid or competitive proposal for which the 
bidder or offeror is required to negotiate or submit a subcontracting 
plan under section 8(d) of the Small Business Act (15 U.S.C. 637(d)), 
the subcontracting plan shall be a factor in evaluating the bid or 
proposal.
    ``(i) Annual Report.--(1) Not later than December 15 of each year, 
the head of the agency shall submit to Congress a report on the 
progress of the agency toward attaining the goal of subsection (a) 
during the preceding fiscal year.
    ``(2) The report required under paragraph (1) shall include the 
following:
        ``(A) A full explanation of any progress toward attaining the 
    goal of subsection (a).
        ``(B) A plan to achieve the goal, if necessary.
    ``(3) The report required under paragraph (1) shall also include 
the following:
        ``(A) The aggregate differential between the fair market price 
    of all contracts awarded pursuant to subsection (e)(3) and the 
    estimated fair market price of all such contracts had such 
    contracts been entered into using full and open competitive 
    procedures.
        ``(B) An analysis of the impact that subsection (a) shall have 
    on the ability of small business concerns not owned and controlled 
    by socially and economically disadvantaged individuals to compete 
    for contracts with the agency.
        ``(C) A description of the percentage of contracts (actions), 
    the total dollar amount (size of action), and the number of 
    different entities relative to the attainment of the goal of 
    subsection (a), separately for Black Americans, Native Americans, 
    Hispanic Americans, Asian Pacific Americans, and other minorities.
    ``(j) Definitions.--In this section:
        ``(1) The term `agency' means the Department of Defense, the 
    Coast Guard, and the National Aeronautics and Space Administration.
        ``(2) The term `head of an agency' means the Secretary of 
    Defense, the Secretary of Transportation, and the Administrator of 
    the National Aeronautics and Space Administration.
    ``(k) Effective Date.--(1) This section applies in the Department 
of Defense to each of fiscal years 1987 through 2000.
    ``(2) This section applies in the Coast Guard and the National 
Aeronautics and Space Administration in each of fiscal years 1995 
through 2000.''.

SEC. 7106. PROCUREMENT GOALS FOR SMALL BUSINESS CONCERNS OWNED BY 
              WOMEN.

    (a) Goals.--Section 15 of the Small Business Act (15 U.S.C. 644) is 
amended--
        (1) by striking out ``and small business concerns owned and 
    controlled by socially and economically disadvantaged individuals'' 
    each place it appears in the first sentence and fourth sentences of 
    subsection (g)(1), the second sentence of subsection (g)(2), and 
    paragraphs (1), (2)(A), (2)(D), and (2)(E) of subsection (h) and 
    inserting in lieu thereof ``, small business concerns owned and 
    controlled by socially and economically disadvantaged individuals, 
    and small business concerns owned and controlled by women'';
        (2) in subsection (g)--
            (A) by inserting after the third sentence of paragraph (1) 
        the following: ``The Government-wide goal for participation by 
        small business concerns owned and controlled by women shall be 
        established at not less than 5 percent of the total value of 
        all prime contract and subcontract awards for each fiscal 
        year.'';
            (B) in the first sentence of paragraph (2), by striking out 
        ``and by small business concerns owned and controlled by 
        socially and economically disadvantaged individuals,'' and 
        inserting in lieu thereof ``, by small business concerns owned 
        and controlled by socially and economically disadvantaged 
        individuals, and by small business concerns owned and 
        controlled by women''; and
            (C) in the fourth sentence of paragraph (2), by inserting 
        after ``including participation by small business concerns 
        owned and controlled by socially and economically disadvantaged 
        individuals'' the following: ``and participation by small 
        business concerns owned and controlled by women''; and
        (3) in subsection (h)(2)(F), by striking out ``women-owned 
    small business enterprises'' and inserting in lieu thereof ``small 
    business concerns owned and controlled by women''.
    (b) Subcontract Participation.--Section 8(d) of such Act (15 U.S.C. 
637(d)) is amended--
        (1) by striking out ``and small business concerns owned and 
    controlled by socially and economically disadvantaged individuals'' 
    both places it appears in paragraph (1), both places it appears in 
    paragraph (3)(A), in paragraph (4)(D), in subparagraphs (A), (C), 
    and (F) of paragraph (6), and in paragraph (10)(B) and inserting in 
    lieu thereof ``, small business concerns owned and controlled by 
    socially and economically disadvantaged individuals, and small 
    business concerns owned and controlled by women'';
        (2) by striking out subparagraph (D) in paragraph (3) and 
    inserting in lieu thereof the following:
        ``(E) Contractors acting in good faith may rely on written 
    representations by their subcontractors regarding their status as 
    either a small business concern, a small business concern owned and 
    controlled by socially and economically disadvantaged individuals, 
    or a small business concern owned and controlled by women.'';
        (3) in paragraph (3), by inserting after subparagraph (C) the 
    following new subparagraph (D):
        ``(D) The term `small business concern owned and controlled by 
    women' shall mean a small business concern--
            ``(i) which is at least 51 per centum owned by one or more 
        women; or, in the case of any publicly owned business, at least 
        51 per centum of the stock of which is owned by one or more 
        women; and
            ``(ii) whose management and daily business operations are 
        controlled by one or more women.''; and
        (4) in paragraph (4)(E), by inserting ``and for small business 
    concerns owned and controlled by women'' after ``as defined in 
    paragraph (3) of this subsection''.
    (c) Misrepresentations of Status.--(1) Subsection (d)(1) of section 
16 of such Act (15 U.S.C. 645) is amended by striking out ``or `small 
business concern owned and controlled by socially and economically 
disadvantaged individuals''' and inserting in lieu thereof ``, a `small 
business concern owned and controlled by socially and economically 
disadvantaged individuals', or a `small business concerns owned and 
controlled by women'''.
    (2) Subsection (e) of such section is amended by striking out ``or 
`small business concern owned and controlled by socially and 
economically disadvantaged individuals''' and inserting in lieu thereof 
``, a `small business concern owned and controlled by socially and 
economically disadvantaged individuals', or a `small business concerns 
owned and controlled by women'''.
    (d) Definition.--Section 3 of such Act (15 U.S.C. 632) is amended 
by adding at the end the following new subsection:
    ``(n) For the purposes of this Act, a small business concern is a 
small business concern owned and controlled by women if--
        ``(1) at least 51 percent of small business concern is owned by 
    one or more women or, in the case of any publicly owned business, 
    at least 51 percent of the stock of which is owned by one or more 
    women; and
        ``(2) the management and daily business operations of the 
    business are controlled by one or more women.''.

SEC. 7107. DEVELOPMENT OF DEFINITIONS REGARDING CERTAIN SMALL BUSINESS 
              CONCERNS.

    (a) Review Required.--(1) The Administrator for Federal Procurement 
Policy shall conduct a comprehensive review of Federal laws, as in 
effect on November 1, 1994, to identify and catalogue all of the 
provisions in such laws that define (or describe for definitional 
purposes) the small business concerns set forth in paragraph (2) for 
purposes of authorizing the participation of such small business 
concerns as prime contractors or subcontractors in--
        (A) contracts awarded directly by the Federal Government or 
    subcontracts awarded under such contracts; or
        (B) contracts and subcontracts funded, in whole or in part, by 
    Federal financial assistance under grants, cooperative agreements, 
    or other forms of Federal assistance.
    (2) The small business concerns referred to in paragraph (1) are as 
follows:
        (A) Small business concerns owned and controlled by socially 
    and economically disadvantaged individuals.
        (B) Minority-owned small business concerns.
        (C) Small business concerns owned and controlled by women.
        (D) Woman-owned small business concerns.
    (b) Matters To Be Developed.--On the basis of the results of the 
review carried out under subsection (a), the Administrator for Federal 
Procurement Policy shall develop--
        (1) uniform definitions for the small business concerns 
    referred to in subsection (a)(2);
        (2) uniform agency certification standards and procedures for--
            (A) determinations of whether a small business concern 
        qualifies as a small business concern referred to in subsection 
        (a)(2) under an applicable standard for purposes of contracts 
        and subcontracts referred to in subsection (a)(1); and
            (B) reciprocal recognition by an agency of a decision of 
        another agency regarding whether a small business concern 
        qualifies as a small business concern referred to in subsection 
        (a)(2) for such purposes; and
        (3) such other related recommendations as the Administrator 
    determines appropriate consistent with the review results.
    (c) Procedures and Schedule.--(1) The Administrator for Federal 
Procurement Policy shall provide for the participation in the review 
and activities under subsections (a) and (b) by representatives of--
        (A) the Small Business Administration (including the Office of 
    the Chief Counsel for Advocacy);
        (B) the Minority Business Development Agency of the Department 
    of Commerce;
        (C) the Department of Transportation;
        (D) the Environmental Protection Agency; and
        (E) such other executive departments and agencies as the 
    Administrator considers appropriate.
    (2) In carrying out subsections (a) and (b), the Administrator 
shall consult with representatives of organizations representing--
        (A) minority-owned business enterprises;
        (B) women-owned business enterprises; and
        (C) other organizations that the Administrator considers 
    appropriate.
    (3) Not later than 60 days after the date of the enactment of this 
Act, the Administrator shall publish in the Federal Register a notice 
which--
        (A) lists the provisions of law identified in the review 
    carried out under subsection (a);
        (B) describes the matters to be developed on the basis of the 
    results of the review pursuant to subsection (b);
        (C) solicits public comment regarding the matters described in 
    the notice pursuant to subparagraphs (A) and (B) for a period of 
    not less than 60 days; and
        (D) addresses such other matters as the Administrator considers 
    appropriate to ensure the comprehensiveness of the review and 
    activities under subsections (a) and (b).
    (d) Report.--Not later than May 1, 1996, the Administrator for 
Federal Procurement Policy shall submit to the Committees on Small 
Business of the Senate and the House of Representatives a report on the 
results of the review carried out under subsection (a) and the actions 
taken under subsection (b). The report shall include a discussion of 
the results of the review, a description of the consultations conducted 
and public comments received, and the Administrator's recommendations 
with regard to the matters identified under subsection (b).

SEC. 7108. FUNCTIONS OF OFFICE OF FEDERAL PROCUREMENT POLICY RELATING 
              TO SMALL BUSINESS.

    (a) Policies.--Section 6(d) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405(d)) is amended by adding after paragraph (9), 
as added by section 5091, the following new paragraphs:
        ``(10) developing policies, in consultation with the 
    Administrator of the Small Business Administration, that ensure 
    that small businesses, small businesses owned and controlled by 
    socially and economically disadvantaged individuals, and small 
    businesses owned and controlled by women are provided with the 
    maximum practicable opportunities to participate in procurements 
    that are conducted for amounts below the simplified acquisition 
    threshold;
        ``(11) developing policies that will promote achievement of 
    goals for participation by small businesses, small businesses owned 
    and controlled by socially and economically disadvantaged 
    individuals, and small business owned and controlled by women; 
    and''.
    (b) Education and Training.--Section 6(d)(5) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405(d)(5)) is amended--
        (1) by striking out ``and'' at the end of subparagraph (A);
        (2) by striking out the semicolon at the end of subparagraph 
    (B) and inserting in lieu thereof ``; and''; and
        (3) by adding at the end the following new subparagraph:
            ``(C) establish policies and procedures for the 
        establishment and implementation of education and training 
        programs authorized by this Act, including the establishment 
        and implementation of training, in conjunction with the General 
        Services Administration, for critical procurement personnel 
        designed to increase the participation of small business 
        concerns owned and controlled by socially and economically 
        disadvantaged individuals, women, and other minorities in 
        procurement activities conducted by an executive agency.''.

                     Subtitle B--Socioeconomic Laws

SEC. 7201. ACQUISITIONS GENERALLY.

    The Act of June 30, 1936 (41 U.S.C. 35 et seq.), commonly referred 
to as the ``Walsh-Healey Act'', is amended--
        (1) in the first section, by striking out subsection (a) and 
    redesignating subsections (b), (c), (d), and (e), as subsections 
    (a), (b), (c), and (d), respectively;
        (2) in section 10(b) by striking out ``manufacturer of, or 
    regular dealer in,'' and inserting in lieu thereof ``supplier of'';
        (3) in section 10(c) by striking out `` `regular dealer', 
    `manufacturer',''; and
        (4) by adding at the end the following new sections:
    ``Sec. 11. (a) The Secretary of Labor may prescribe in regulations 
the standards for determining whether a contractor is a manufacturer of 
or a regular dealer in materials, supplies, articles, or equipment to 
be manufactured or used in the performance of a contract entered into 
by any executive department, independent establishment, or other agency 
or instrumentality of the United States, or by the District of 
Columbia, or by any corporation all the stock of which is beneficially 
owned by the United States, for the manufacture or furnishing of 
materials, supplies, articles, and equipment.
    ``(b) Any interested person shall have the right of judicial review 
of any legal question regarding the interpretation of the terms 
`regular dealer' and `manufacturer', as defined pursuant to subsection 
(a).''.

SEC. 7202. PROHIBITION ON USE OF FUNDS FOR DOCUMENTING ECONOMIC OR 
              EMPLOYMENT IMPACT OF CERTAIN ACQUISITION PROGRAMS.

    (a)  Revision and Codification.--(1) Subchapter I of chapter 134 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2247. Prohibition on use of funds for documenting economic or 
            employment impact of certain acquisition programs

    ``No funds appropriated by the Congress may be obligated or 
expended to assist any contractor of the Department of Defense in 
preparing any material, report, lists, or analysis with respect to the 
actual or projected economic or employment impact in a particular State 
or congressional district of an acquisition program for which all 
research, development, testing, and evaluation has not been 
completed.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:
``2247. Prohibition on use of funds for documenting economic or 
          employment impact of certain acquisition programs.''.

    (b) Repeal of Superseded Law.--Section 9048 of Public Law 102-396 
(106 Stat. 1913) is repealed.

SEC. 7203. MERIT-BASED AWARD OF CONTRACTS AND GRANTS.

    (a) Armed Services Acquisitions.--(1) Section 2304 of title 10, 
United States Code, as amended by section 1005, is further amended--
        (A) in subsection (c)(5), by inserting ``subject to subsection 
    (j),'' after ``(5)''; and
        (B) by adding at the end the following new subsection:
    ``(j)(1) It is the policy of Congress that an agency named in 
section 2303(a) of this title should not be required by legislation to 
award a new contract to a specific non-Federal Government entity. It is 
further the policy of Congress that any program, project, or technology 
identified in legislation be procured through merit-based selection 
procedures.
    ``(2) A provision of law may not be construed as requiring a new 
contract to be awarded to a specified non-Federal Government entity 
unless that provision of law--
        ``(A) specifically refers to this subsection;
        ``(B) specifically identifies the particular non-Federal 
    Government entity involved; and
        ``(C) specifically states that the award to that entity is 
    required by such provision of law in contravention of the policy 
    set forth in paragraph (1).
    ``(3) For purposes of this subsection, 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 preceding contract.
    ``(4) This subsection shall not apply with respect to any contract 
that calls upon the National Academy of Sciences to investigate, 
examine, or experiment upon any subject of science or art of 
significance to an agency named in section 2303(a) of this title and to 
report on such matters to the Congress or any agency of the Federal 
Government.''.
    (2) Chapter 139 of title 10, United States Code, is amended by 
adding at the end the following new section:

``Sec. 2374. Merit-based award of grants for research and development

    ``(a) It is the policy of Congress that an agency named in section 
2303(a) of this title should not be required by legislation to award a 
new grant for research, development, test, or evaluation to a non-
Federal Government entity. It is further the policy of Congress that 
any program, project, or technology identified in legislation be 
awarded through merit-based selection procedures.
    ``(b) A provision of law may not be construed as requiring a new 
grant to be awarded to a specified non-Federal Government entity unless 
that provision of law--
        ``(1) specifically refers to this subsection;
        ``(2) specifically identifies the particular non-Federal 
    Government entity involved; and
        ``(3) specifically states that the award to that entity is 
    required by such provision of law in contravention of the policy 
    set forth in subsection (a).
    ``(c) For purposes of this section, 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 preceding grant.
    ``(d) This section shall not apply with respect to any grant that 
calls upon the National Academy of Sciences to investigate, examine, or 
experiment upon any subject of science or art of significance to an 
agency named in section 2303(a) of this title and to report on such 
matters to the Congress or any agency of the Federal Government.''.
    (3) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2374. Merit-based award of grants for research and development.''.

    (b) Civilian Agency Acquisitions.--(1) Section 303 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253) is 
amended--
        (A) in subsection (c)(5), by inserting ``subject to subsection 
    (h),'' after ``(5)''; and
        (B) by adding at the end the following new subsection:
    ``(h)(1) It is the policy of Congress that an executive agency 
should not be required by legislation to award a new contract to a 
specific non-Federal Government entity. It is further the policy of 
Congress that any program, project, or technology identified in 
legislation be procured through merit-based selection procedures.
    ``(2) A provision of law may not be construed as requiring a new 
contract to be awarded to a specified non-Federal Government entity 
unless that provision of law--
        ``(A) specifically refers to this subsection;
        ``(B) specifically identifies the particular non-Federal 
    Government entity involved; and
        ``(C) specifically states that the award to that entity is 
    required by such provision of law in contravention of the policy 
    set forth in paragraph (1).
    ``(3) For purposes of this subsection, 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 preceding contract.
    ``(4) This subsection shall not apply with respect to any contract 
that calls upon the National Academy of Sciences to investigate, 
examine, or experiment upon any subject of science or art of 
significance to an executive agency and to report on such matters to 
the Congress or any agency of the Federal Government.''.
    (2) Title III of such Act, as amended by section 6006, is further 
amended by adding at the end the following new section:

``SEC. 316. MERIT-BASED AWARD OF GRANTS FOR RESEARCH AND DEVELOPMENT

    ``(a) Policy.--It is the policy of Congress that an executive 
agency should not be required by legislation to award a new grant for 
research, development, test, or evaluation to a non-Federal Government 
entity. It is further the policy of Congress that any program, project, 
or technology identified in legislation be awarded through merit-based 
selection procedures.
    ``(b) Rule of Construction.--A provision of law may not be 
construed as requiring a new grant to be awarded to a specified non-
Federal Government entity unless that provision of law--
        ``(1) specifically refers to this subsection;
        ``(2) specifically identifies the particular non-Federal 
    Government entity involved; and
        ``(3) specifically states that the award to that entity is 
    required by such provision of law in contravention of the policy 
    set forth in subsection (a).
    ``(c) New Grant Defined.--For purposes of this section, 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 preceding grant.
    ``(d) Inapplicability to Certain Grants.--This section shall not 
apply with respect to any grant that calls upon the National Academy of 
Sciences to investigate, examine, or experiment upon any subject of 
science or art of significance to an executive agency and to report on 
such matters to Congress or any agency of the Federal Government.''.

SEC. 7204. MAXIMUM PRACTICABLE OPPORTUNITIES FOR APPRENTICES ON FEDERAL 
              CONSTRUCTION PROJECTS.

    It is the sense of the House of Representatives that--
        (1) contractors performing Federal construction contracts 
    should, to the maximum extent practicable, give preference in the 
    selection of subcontractors to subcontractors participating in 
    apprenticeship programs registered with the Department of Labor or 
    with a State apprenticeship agency recognized by such Department; 
    and
        (2) contractors and subcontractors performing Federal 
    construction contracts should provide maximum practicable 
    opportunities for employment of apprentices who are participating 
    in or who have completed such apprenticeship programs.

SEC. 7205. REPEAL OF OBSOLETE PROVISION.

    Section 308 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 258) is repealed.

SEC. 7206. REPEAL OF OBSOLETE AND REDUNDANT PROVISIONS OF LAW.

    (a) Repeal of Requirement for Policy Guidance.--Title III of the 
Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly referred to as 
the ``Buy American Act'', is amended in section 4(g) (41 U.S.C. 10b-
1(g)) by striking out paragraphs (2)(C) and (3).
    (b) Repeal of Reporting Requirement.--Section 9096(b) of Public Law 
102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) is repealed.
    (c) Repeal of Studies of Waivers.--Section 306 of the Trade 
Agreements Act of 1979 (19 U.S.C. 2516) is repealed.

     Subtitle C--Waiver of Application of Prevailing Wage-Setting 
                       Requirements to Volunteers

SEC. 7301. SHORT TITLE.

    This subtitle may be cited as the ``Community Improvement Volunteer 
Act of 1994''.

SEC. 7302. PURPOSE.

    It is the purpose of this subtitle to promote and provide 
opportunities for people who wish to volunteer their services to State 
or local governments, public agencies, or nonprofit charitable 
organizations in the construction, repair or alteration (including 
painting and decorating) of public buildings and public works that are 
funded, in whole or in part, with Federal financial assistance 
authorized under certain Federal programs and that might not otherwise 
be possible without the use of volunteers.

SEC. 7303. WAIVER FOR INDIVIDUALS WHO PERFORM VOLUNTEER SERVICES FOR 
              PUBLIC ENTITIES.

    (a) In General.--The requirement that certain laborers and 
mechanics be paid in accordance with the wage-setting provisions of the 
Act of March 3, 1931 (commonly known as the ``Davis-Bacon Act'') (40 
U.S.C. 276a et seq.) as set forth in any of the Acts or provisions 
described in section 7305 shall not apply to an individual--
        (1) who volunteers--
            (A) to perform a service directly to a State or local 
        government or a public agency for civic, charitable, or 
        humanitarian reasons, without promise, expectation, or receipt 
        of compensation for services rendered, other than expenses, 
        reasonable benefits, or a nominal fee (as defined in subsection 
        (b)), but solely for the personal purpose or pleasure of the 
        individual; and
            (B) to provide such services freely and without pressure or 
        coercion, direct or implied, from any employer;
        (2) whose contribution of service is not for the direct or 
    indirect benefit of any contractor otherwise performing or seeking 
    to perform work on the same project for which the individual is 
    volunteering;
        (3) who is not employed by and does not provide services to a 
    contractor or subcontractor at any time on the federally assisted 
    or insured project for which the individual is volunteering; and
        (4) who is not otherwise employed by the same public agency to 
    perform the same type of services as those for which the individual 
    proposes to volunteer.
    (b) Expenses.--Payments of expenses, reasonable benefits, or a 
nominal fee may be provided to volunteers described in subsection (a) 
only in accordance with regulations issued by the Secretary of Labor. 
In prescribing the regulations, the Secretary shall take into 
consideration criteria such as the total amount of payments made 
(relating to expenses, benefits, or fees) in the context of the 
economic realities. The regulations shall include provisions that 
provide that--
        (1) a payment for an expense may be received by a volunteer for 
    items such as uniform allowances, protective gear and clothing, 
    reimbursement for approximate out-of-pocket expenses, or for the 
    cost or expense of meals and transportation;
        (2) a reasonable benefit may include the inclusion of a 
    volunteer in a group insurance plan (such as a liability, health, 
    life, disability, or worker's compensation plan) or pension plan, 
    or the awarding of a length of service award; and
        (3) a nominal fee may not be used as a substitute for 
    compensation and may not be connected to productivity.
The decision as to what constitutes a nominal fee for purposes of 
paragraph (3) shall be determined based on the context of the economic 
realities of the situation involved and shall be made by the Secretary 
of Labor.
    (c) Economic Reality.--For purposes of subsection (b), in 
determining whether an expense, benefit, or fee described in such 
subsection may be paid to volunteers in the context of the economic 
realities of the particular situation, the Secretary of Labor may not 
permit any such expense, benefit, or fee that has the effect of 
undermining labor standards by creating downward pressure on prevailing 
wages in the local construction industry.

SEC. 7304. WAIVER FOR INDIVIDUALS WHO PERFORM VOLUNTEER SERVICES FOR 
              NONPROFIT ENTITIES.

    The requirement that certain laborers and mechanics be paid in 
accordance with the wage-setting provisions of the Act of March 3, 1931 
(commonly known as the ``Davis-Bacon Act'') (40 U.S.C. 276a et seq.) as 
set forth in any of the Acts or provisions described in section 7305 
shall not apply to any individual--
        (1) who volunteers--
            (A) to perform a service directly to a public or private 
        nonprofit recipient of Federal assistance for civic, 
        charitable, or humanitarian reasons, without promise, 
        expectation, or receipt of compensation for services rendered, 
        but solely for the personal purpose or pleasure of the 
        individual; and
            (B) to provide such services freely and without pressure or 
        coercion, direct or implied, from any employer;
        (2) whose contribution of service is not for the direct or 
    indirect benefit of any contractor otherwise performing or seeking 
    to perform work on the same project for which the individual is 
    volunteering;
        (3) who is not employed by and does not provide services to a 
    contractor or subcontractor at any time on the federally assisted 
    or insured project for which the individual is volunteering; and
        (4) who is not otherwise employed by the recipient of Federal 
    assistance to perform the same type of services as those for which 
    the individual proposes to volunteer.

SEC. 7305. CONTRACTS AFFECTED.

    For purposes of sections 7303 and 7304, the Acts or provisions 
described in this section are--
        (1) the Library Services and Construction Act (20 U.S.C. 351 et 
    seq.);
        (2) the Indian Self-Determination and Education Assistance Act 
    (25 U.S.C. 450 et seq.);
        (3) section 329 of the Public Health Service Act (42 U.S.C. 
    254b);
        (4) section 330 of the Public Health Service Act (42 U.S.C. 
    254c);
        (5) the Indian Health Care Improvement Act (25 U.S.C. 1601 et 
    seq.); and
        (6) the Housing and Community Development Act of 1974 (42 
    U.S.C. 5301 et seq.).

SEC. 7306. REPORT.

    Not later than December 31, 1997, the Secretary of Labor shall 
prepare and submit to the appropriate committees of Congress a report 
that--
        (1) to the maximum extent practicable--
            (A) identifies and assesses the barriers that prevent 
        private for-profit entities from using volunteers permitted 
        under this subtitle; and
            (B) assesses whether private for-profit entities should be 
        permitted to use volunteers on projects relating to the 
        construction, repair, or alteration of public buildings and 
        public works if--
                (i) such volunteers are performing services for civic, 
            charitable, humanitarian or educational reasons;
                (ii) the contribution of such services is not for the 
            direct or indirect benefit of the private for-profit entity 
            that is performing or seeking to perform work on such 
            projects; and
                (iii) such projects would not otherwise be possible 
            without the use of volunteers; and
        (2) contains recommendations with respect to other Acts related 
    to the Davis-Bacon Act that may be considered in legislation to 
    permit volunteer work.

                      TITLE VIII--COMMERCIAL ITEMS
                Subtitle A--Definitions and Regulations

SEC. 8001. DEFINITIONS.

    (a) Definitions.--Section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403) is amended by adding at the end the 
following new paragraphs:
        ``(12) The term `commercial item' means any of the following:
            ``(A) Any item, other than real property, that is of a type 
        customarily used by the general public or by nongovernmental 
        entities for purposes other than governmental purposes, and 
        that--
                ``(i) has been sold, leased, or licensed to the general 
            public; or
                ``(ii) has been offered for sale, lease, or license to 
            the general public.
            ``(B) Any item that evolved from an item described in 
        subparagraph (A) through advances in technology or performance 
        and that 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.
            ``(C) Any item that, but for--
                ``(i) modifications of a type customarily available in 
            the commercial marketplace, or
                ``(ii) minor modifications made to meet Federal 
            Government requirements,
        would satisfy the criteria in subparagraph (A) or (B).
            ``(D) Any combination of items meeting the requirements of 
        subparagraph (A), (B), (C), or (E) that are of a type 
        customarily combined and sold in combination to the general 
        public.
            ``(E) Installation services, maintenance services, repair 
        services, training services, and other services if such 
        services are procured for support of an item referred to in 
        subparagraph (A), (B), (C), or (D) and if the source of such 
        services--
                ``(i) offers such services to the general public and 
            the Federal Government contemporaneously and under similar 
            terms and conditions; and
                ``(ii) offers to use the same work force for providing 
            the Federal Government with such services as the source 
            uses for providing such services to the general public.
            ``(F) Services offered and sold competitively, in 
        substantial quantities, in the commercial marketplace based on 
        established catalog prices for specific tasks performed and 
        under standard commercial terms and conditions.
            ``(G) Any item, combination of items, or service referred 
        to in subparagraphs (A) through (F) notwithstanding the fact 
        that the item, combination of items, or service is transferred 
        between or among separate divisions, subsidiaries, or 
        affiliates of a contractor.
            ``(H) A nondevelopmental item, if the procuring agency 
        determines, in accordance with conditions set forth 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.
        ``(13) The term `nondevelopmental item' means any of the 
    following:
            ``(A) Any commercial item.
            ``(B) Any previously developed item of supply that is in 
        use by a department or agency of the United States, a State or 
        local government, or a foreign government with which the United 
        States has a mutual defense cooperation agreement.
            ``(C) Any item of supply described in subparagraph (A) or 
        (B) that requires only minor modification or modification of 
        the type customarily available in the commercial marketplace in 
        order to meet the requirements of the procuring department or 
        agency.
            ``(D) Any item of supply currently being produced that does 
        not meet the requirements of subparagraph (A), (B), or (C) 
        solely because the item is not yet in use.
        ``(14) The term `component' means any item supplied to the 
    Federal Government as part of an end item or of another component.
        ``(15) The term `commercial component' means any component that 
    is a commercial item.''.
    (b) Stylistic Amendments.--Such section is further amended--
        (1) by striking out ``Act--'' in the matter preceding paragraph 
    (1) and inserting in lieu thereof ``Act:'';
        (2) by capitalizing the first letter of the first word in each 
    of paragraphs (1) through (11);
        (3) by striking out the semicolon at the end of each of 
    paragraphs (1), (2), (3), (5), (6), (7), (8), and (9) and inserting 
    in lieu thereof a period; and
        (4) by striking out ``; and'' at the end of paragraphs (4) and 
    (10) and inserting in lieu thereof a period.

SEC. 8002. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.

    (a) In General.--The Federal Acquisition Regulation shall provide 
regulations to implement paragraphs (12) through (15) of section 4 of 
the Office of Federal Procurement Policy Act, chapter 140 of title 10, 
United States Code, and sections 314 through 314B of the Federal 
Property and Administrative Services Act of 1949.
    (b) Contract Clauses.--(1) The regulations prescribed under 
subsection (a) shall contain a list of contract clauses to be included 
in contracts for the acquisition of commercial end items. Such list 
shall, to the maximum extent practicable, include only those contract 
clauses--
        (A) that are required to implement provisions of law or 
    executive orders applicable to acquisitions of commercial items or 
    commercial components, as the case may be; or
        (B) that are determined to be consistent with standard 
    commercial practice.
    (2) Such regulations shall provide that a prime contractor shall 
not be required by the Federal Government to apply to any of its 
divisions, subsidiaries, affiliates, subcontractors, or suppliers that 
are furnishing commercial items any contract clause except those--
        (A) that are required to implement provisions of law or 
    executive orders applicable to subcontractors furnishing commercial 
    items or commercial components, as the case may be; or
        (B) that are determined to be consistent with standard 
    commercial practice.
    (3) To the maximum extent practicable, only the contract clauses 
listed pursuant to paragraph (1) may be used in a contract, and only 
the contract clauses referred to in paragraph (2) may be required to be 
used in a subcontract, for the acquisition of commercial items or 
commercial components by or for an executive agency.
    (4) The Federal Acquisition Regulation shall provide standards and 
procedures for waiving the use of contract clauses required pursuant to 
paragraph (1), other than those required by law, including standards 
for determining the cases in which a waiver is appropriate.
    (5) For purposes of this subsection, the term ``subcontract'' 
includes a transfer of commercial items between divisions, 
subsidiaries, or affiliates of a contractor or subcontractor.
    (c) Market Acceptance.--(1) 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--
        (A) have either--
            (i) achieved commercial market acceptance; or
            (ii) been satisfactorily supplied to an executive agency 
        under current or recent contracts for the same or similar 
        requirements; and
        (B) otherwise meet the item description, specifications, or 
    other criteria prescribed in the public notice and solicitation 
    relating to the contract.
    (2) The Federal Acquisition Regulation shall provide guidance to 
ensure that the criteria for determining commercial market acceptance 
include the consideration of--
        (A) the minimum needs of the executive agency concerned; and
        (B) the entire relevant commercial market, including small 
    businesses.
    (d) Use of Firm, Fixed Price Contracts.--The Federal Acquisition 
Regulation shall include, for acquisitions of commercial items--
        (1) a requirement that firm, fixed price contracts or fixed 
    price with economic price adjustment contracts be used to the 
    maximum extent practicable; and
        (2) a prohibition on use of cost type contracts.
    (e) Contract Quality Requirements.--The regulations prescribed 
under subsection (a) shall include provisions that--
        (1) permit, 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 Government to 
    inspect or test the commercial items before the contractor's tender 
    of those items for acceptance by the Government;
        (2) 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 such 
    warranties for the repair and replacement of commercial items; and
        (3) set forth guidance regarding the use of past performance of 
    commercial items and sources as a factor in contract award 
    decisions.
    (f) Defense Contract Clauses.--(1) Section 824(b) of the National 
Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 10 U.S.C. 2325 note) shall cease to be effective on the date 
on which the regulations implementing this section become effective.
    (2) Notwithstanding subsection (b), a contract of the Department of 
Defense entered into before the date on which section 824(b) ceases to 
be effective under paragraph (1), and a subcontract entered into before 
such date under such a contract, may include clauses developed pursuant 
to paragraphs (2) and (3) of section 824(b) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
10 U.S.C. 2325 note).

SEC. 8003. LIST OF INAPPLICABLE LAWS IN FEDERAL ACQUISITION REGULATION.

    (a) List.--The Office of Federal Procurement Policy Act (41 U.S.C. 
401 et seq.), is amended by adding after section 33, as added by 
section 4101, the following new section:

``SEC. 34. LIST OF LAWS INAPPLICABLE TO PROCUREMENTS OF COMMERCIAL 
              ITEMS IN FEDERAL ACQUISITION REGULATION.

    ``(a) List of Inapplicable Provisions of Law.--(1) 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 that is properly included on the list pursuant to 
paragraph (2) may not be construed as applicable to purchases of 
commercial items by an executive agency. Nothing in this section shall 
be construed to render inapplicable to contracts for the procurement of 
commercial items any provision of law that is not included on such 
list.
    ``(2) A provision of law described in subsection (c) that is 
enacted after the date of the enactment of the Federal Acquisition 
Streamlining Act of 1994 shall be included on the list of inapplicable 
provisions of law required by paragraph (1), unless the Federal 
Acquisition Regulatory 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.
    ``(b) Subcontracts.--(1) The Federal Acquisition Regulation shall 
include a list of provisions of law that are inapplicable to 
subcontracts under either a contract for the procurement of commercial 
items or a subcontract for the procurement of commercial items. A 
provision of law that is properly included on the list pursuant to 
paragraph (2) may not be construed as applicable to such subcontracts. 
Nothing in this section shall be construed to render inapplicable to 
subcontracts under a contract for the procurement of commercial items 
any provision of law that is not included on such list.
    ``(2) A provision of law described in subsection (c) shall be 
included on the list of inapplicable provisions of law required by 
paragraph (1) unless the Federal Acquisition Regulatory 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.
    ``(3) Nothing in this subsection shall be construed to 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.
    ``(4) In this subsection, the term `subcontract' includes a 
transfer of commercial items between divisions, subsidiaries, or 
affiliates of a contractor or subcontractor.
    ``(c) Covered Law.--A provision of law referred to in subsections 
(a)(2) and (b) is any provision of law that, as determined by the 
Federal Acquisition Regulatory Council, 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.
    ``(d) Petition.--In the event that a provision of law described in 
subsection (c) is not included on the list of inapplicable provisions 
of law as required by subsection (a) or (b), and no written 
determination has been made by the Federal Acquisition Regulatory 
Council pursuant to subsection (a)(2) or (b)(2), a person may petition 
the Administrator for Federal Procurement Policy to take appropriate 
action. The Administrator shall revise the Federal Acquisition 
Regulation to include the provision on the list of inapplicable 
provisions of law unless the Federal Acquisition Regulatory Council 
makes a determination pursuant to subsection (a)(2) or (b)(2) within 60 
days after the date on which the petition is received.''.
    (b) Effective Date of Petition Provision.--No petition may be filed 
under section 34(d) of the Office of Federal Procurement Policy Act, as 
added by subsection (a), until after the date occurring 6 months after 
the date of the enactment of this Act.

                Subtitle B--Armed Services Acquisitions

SEC. 8101. ESTABLISHMENT OF NEW CHAPTER IN TITLE 10.

    (a) Establishment.--Part IV of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 139 the following 
new chapter 140:

             ``CHAPTER 140--PROCUREMENT OF COMMERCIAL ITEMS

``Sec.
``2375. Relationship of commercial item provisions to other provisions 
          of law.
``2376. Definitions.
``2377. Preference for acquisition of commercial items.''.

    (b) Clerical Amendment.--The tables of chapters at the beginning of 
subtitle A of title 10, United States Code, and the beginning of part 
IV of such subtitle are amended by inserting after the item relating to 
chapter 139 the following new item:

``140. Procurement of Commercial Items...........................2375''.

SEC. 8102. RELATIONSHIP TO OTHER PROVISIONS OF LAW.

    Chapter 140 of title 10, United States Code, as added by section 
8101, is amended by adding after the table of sections the following:

``Sec. 2375. Relationship of commercial item provisions to other 
            provisions of law

    ``(a) Applicability of Title.--Unless otherwise specifically 
provided, nothing in this chapter shall be construed as providing that 
any other provision of this title relating to procurement is 
inapplicable to the procurement of commercial items.
    ``(b) List of Laws Inapplicable to Contracts for the Acquisition of 
Commercial Items.--No contract for the procurement of a commercial item 
entered into by the head of an agency shall be subject to any law 
properly listed in the Federal Acquisition Regulation (pursuant to 
section 34 of the Office of Federal Procurement Policy Act).
    ``(c) Cross Reference to Exception to Cost or Pricing Data 
Requirements for Commercial Items.--For provisions relating to 
exceptions for requirements for cost or pricing data for contracts for 
the procurement of commercial items, see section 2306a(d) of this 
title.''.

SEC. 8103. DEFINITIONS.

    Chapter 140 of title 10, United States Code, as amended by section 
8102, is further amended by adding after section 2375 the following new 
section:

``Sec. 2376. Definitions

    ``In this chapter:
        ``(1) The terms `commercial item', `nondevelopmental item', 
    `component', and `commercial component' have the meanings provided 
    in section 4 of the Office of Federal Procurement Policy Act.
        ``(2) The term `head of an agency' means the Secretary of 
    Defense, the Secretary of Transportation, and the Administrator of 
    the National Aeronautics and Space Administration.
        ``(3) The term `agency' means the Department of Defense, the 
    Coast Guard, and the National Aeronautics and Space 
    Administration.''.

SEC. 8104. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

    (a) In General.--Chapter 140 of title 10, United States Code, as 
amended by section 8103, is further amended by adding after section 
2376 the following new section:

``Sec. 2377. Preference for acquisition of commercial items

    ``(a) Preference.--The head of an agency shall ensure that, to the 
maximum extent practicable--
        ``(1) requirements of the 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) such requirements are defined so that commercial items 
    or, to the extent that commercial items suitable to meet the 
    agency's needs are not available, nondevelopmental items other than 
    commercial items, may be procured to fulfill such 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 such requirements.
    ``(b) Implementation.--The head of an agency shall ensure that 
procurement officials in that agency, to the maximum extent 
practicable--
        ``(1) acquire commercial items or nondevelopmental items other 
    than commercial items to meet the needs of the agency;
        ``(2) require prime contractors and subcontractors at all 
    levels under the agency contracts to incorporate commercial items 
    or nondevelopmental items other than commercial items as components 
    of items supplied to the 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 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 agency's needs are not 
    available, nondevelopmental items other than commercial items in 
    response to the agency solicitations;
        ``(5) revise the 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.
    ``(c) Preliminary Market Research.--(1) The head of an agency shall 
conduct market research appropriate to the circumstances--
        ``(A) before developing new specifications for a procurement by 
    that agency; and
        ``(B) before soliciting bids or proposals for a contract in 
    excess of the simplified acquisition threshold.
    ``(2) The head of an agency shall use the results of market 
research to determine whether there are commercial items or, to the 
extent that commercial items suitable to meet the agency's needs are 
not available, nondevelopmental items other than commercial items 
available that--
        ``(A) meet the agency's requirements;
        ``(B) could be modified to meet the agency's requirements; or
        ``(C) could meet the agency's requirements if those 
    requirements were modified to a reasonable extent.
    ``(3) In conducting market research, the head of an agency should 
not require potential sources to submit more than the minimum 
information that is necessary to make the determinations required in 
paragraph (2).''.
    (b) Repeal of Superseded Provision.--(1) Section 2325 of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking out the item relating to section 2325.

SEC. 8105. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    (a) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 2306(b) of title 10, United States Code, as 
amended by section 4102(b), is further amended by inserting before the 
period at the end of the sentence added by that section the following: 
``or to a contract for the acquisition of commercial items''.
    (b) Inapplicability of Requirement To Identify Suppliers and 
Sources of Supplies.--Paragraph (2) of section 2384(b) of title 10, 
United States Code, is amended to read as follows:
    ``(2) The regulations prescribed pursuant to paragraph (1) do not 
apply to a contract that requires the delivery of supplies that are 
commercial items, as defined in section 4(12) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12)).''.
    (c) Inapplicability of Prohibition Against Doing Business with 
Certain Offerors or Contractors.--Section 2393(d) of title 10, United 
States Code, as amended by section 4102(e), is further amended by 
adding at the end the following: ``The requirement shall not apply in 
the case of a subcontract for the acquisition of commercial items (as 
defined in section 4(12) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(12))).''.
    (d) Reports by Employees or Former Employees of Defense 
Contractors.--Section 2397(a)(1) of title 10, United States Code, as 
amended by section 4401(d), is further amended by adding at the end the 
following: ``The term does not include a contract for the purchase of 
commercial items (as defined in section 4(12) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12))).''.
    (e) Limits on Employment for Certain Former DOD Officials.--Section 
2397b(f) of title 10, United States Code, is amended in paragraph 
(2)(B)--
        (A) by striking out ``or'' at the end of clause (i);
        (B) by striking out the period at the end of clause (ii) and 
    inserting in lieu thereof ``; or''; and
        (C) by adding at the end the following new clause:
            ``(iii) any person who contracts to supply the Department 
        of Defense only commercial items (as defined in section 4(12) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        403(12)))''.
    (f) Defense Contractor Requirements Concerning Former DOD 
Officials.--Section 2397c of title 10, United States Code, is amended 
by adding at the end the following:
    ``(e) This section does not apply to contracts for the purchase of 
commercial items (as defined in section 4(12) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12))).''.
    (g) Inapplicability of Prohibition on Limitation of Subcontractor 
Direct Sales.--Section 2402 of title 10, United States Code, as amended 
by section 4102(f), is further amended by adding at the end the 
following new subsection:
    ``(d)(1) An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under such contract 
that restricts sales by such subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict 
sales by that subcontractor to the United States in violation of the 
provision included in such contract pursuant to subsection (a) if the 
agreement does not result in the United States being treated 
differently with regard to the restriction than any other prospective 
purchaser of such commercial items from that subcontractor.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.
    (h) Inapplicability of Prohibition on Persons Convicted of Defense-
related Felonies.--Paragraph (4) of section 2408(a) of title 10, United 
States Code, as added by section 4102(g), is amended--
        (1) by inserting after subparagraph (A) the following:
        ``(B) A contract referred to in such subparagraph that is for 
    the acquisition of commercial items (as defined in section 4(12) of 
    the Office of Federal Procurement Policy Act (41 U.S.C. 
    403(12))).''; and
        (2) by inserting ``or (B)'' before the period at the end of 
    subparagraph (C).
    (i) Inapplicability of Contractor Inventory Accounting System 
Standards.--Section 2410b of title 10, United States Code, is amended 
by adding after subsection (b), as added by section 4102(h), the 
following:
    ``(c) The regulations prescribed pursuant to subsection (a) shall 
not apply to a contract for the purchase of commercial items (as 
defined in section 4(12) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(12))).''.
    (j) Inapplicability of Reporting Requirement Regarding Dealings 
With Terrorist Countries.--Section 843(a) of Public Law 103-160 (107 
Stat. 1720) is amended by adding at the end the following:
    ``(3) This section does not apply with respect to a contract for 
the procurement of a commercial item (as defined in section 4(12) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 403(12))).''.
    (k) Amendments to Armed Services Provision.--Section 806 of the 
National Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190; 10 U.S.C. 2301 note) is amended by striking out 
subsection (b) and inserting in lieu thereof the following:
    ``(b) Inapplicability to Certain Contracts.--Regulations prescribed 
under this section shall not apply to a contract for the acquisition of 
commercial items (as defined in section 4(12) of the Office of Federal 
Procurement Policy Act).''.

SEC. 8106. PRESUMPTION THAT TECHNICAL DATA UNDER CONTRACTS FOR 
              COMMERCIAL ITEMS ARE DEVELOPED EXCLUSIVELY AT PRIVATE 
              EXPENSE.

    (a) Regulations Required to Include Presumption of Development At 
Private Expense.--Paragraph (1) of section 2320(b) of title 10, United 
States Code, is amended by inserting before the semicolon at the end 
the following: ``and providing that, in the case of a contract for a 
commercial item, the item shall be presumed to be developed at private 
expense unless shown otherwise in accordance with section 2321(f)''.
    (b) Assertion of Restriction Presumed Justified.--Section 2321 of 
title 10, United States Code, is amended--
        (1) by redesignating subsections (f), (g), (h), and (i) as 
    subsections (g), (h), (i), and (j); and
        (2) by inserting after subsection (e) the following new 
    subsection:
    ``(f) Presumption of Development Exclusively at Private Expense for 
Commercial Items Contracts.--In the case of a challenge to a use or 
release restriction that is asserted with respect to technical data of 
a contractor or subcontractor under a contract for commercial items, 
the contracting officer shall presume that the contractor or 
subcontractor has justified the restriction on the basis that the item 
was developed exclusively at private expense, whether or not the 
contractor or subcontractor submits a justification in response to the 
notice provided pursuant to subsection (d)(3). In such a case, the 
challenge to the use or release restriction may be sustained only if 
information provided by the Department of Defense demonstrates that the 
item was not developed exclusively at private expense.''.

                Subtitle C--Civilian Agency Acquisitions

SEC. 8201. RELATIONSHIP TO OTHER PROVISIONS OF LAW.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 5051(a), is 
further amended by adding after section 313 the following new section:

``SEC. 314. RELATIONSHIP OF COMMERCIAL ITEM PROVISIONS TO OTHER 
              PROVISIONS OF LAW.

    ``(a) Applicability of Title.--Unless otherwise specifically 
provided, nothing in this section, section 314A, or section 314B shall 
be construed as providing that any other provision of this title 
relating to procurement is inapplicable to the procurement of 
commercial items.
    ``(b) List of Laws Inapplicable to Contracts for the Acquisition of 
Commercial Items.--No contract for the procurement of a commercial item 
entered into by the head of an executive agency shall be subject to any 
law properly listed in the Federal Acquisition Regulation (pursuant to 
section 34 of the Office of Federal Procurement Policy Act).''.

SEC. 8202. DEFINITIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 8201, is further 
amended by adding after section 314 the following new section:

``SEC. 314A. DEFINITIONS.

    ``As used in this title, the terms `commercial item', 
`nondevelopmental item', `component', and `commercial component' have 
the meanings provided in section 4 of the Office of Federal Procurement 
Policy Act.''.

SEC. 8203. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 8202, is further 
amended by adding after section 314A the following new section:

``SEC. 314B. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.

    ``(a) 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) such 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, nonde- velopmental 
    items other than commercial items, may be procured to fulfill such 
    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 such requirements.
    ``(b) 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 prime contractors and subcontractors at all 
    levels under the executive agency contracts to 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.
    ``(c) Preliminary Market Research.--(1) 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) The head of an executive agency shall use the results of 
market research to determine whether there are 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 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) 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).''.

SEC. 8204. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    (a) Inapplicability of Prohibition on Limiting Subcontractor Direct 
Sales to the United States.--Section 303G of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253g), as amended by 
section 4103(b), is further amended by adding at the end the following 
new subsection:
    ``(d) An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under such contract 
that restricts sales by such subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict 
sales by that subcontractor to the United States in violation of the 
provision included in such 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 such commercial items from that subcontractor.''.
    (b) Inapplicability of Requirement for Contract Clause Regarding 
Contingent Fees.--Section 304(a) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254(a)), as amended by 
section 4103(c), is further amended by inserting before the period at 
the end of the sentence added by section 4103(c) the following: ``or to 
a contract for the acquisition of commercial items''.

                   Subtitle D--Acquisitions Generally

SEC. 8301. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    (a) Federal Water Pollution Control Act.--Section 508 of the 
Federal Water Pollution Control Act (33 U.S.C. 1368) is amended by 
adding at the end the following new subsection:
    ``(f)(1) No certification by a contractor, and no contract clause, 
may be required in the case of a contract for the acquisition of 
commercial items in order to implement a prohibition or requirement of 
this section or a prohibition or requirement issued in the 
implementation of this section.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.
    (b) Contract Work Hours and Safety Standards Act.--The Contract 
Work Hours and Safety Standards Act (title I of the Work Hours and 
Safety Act of 1962 (40 U.S.C. 327 et seq.)) is amended by adding at the 
end the following new section:
    ``Sec. 108. (a) No certification by a contractor, and no contract 
clause, may be required in the case of a contract for the acquisition 
of commercial items in order to implement a prohibition or requirement 
in this title.
    ``(b) In subsection (a), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.
    (c) Anti-Kickback Act of 1986.--(1) Section 7 of the Anti-Kickback 
Act of 1986 (41 U.S.C. 57), as amended by section 4104(a), is further 
amended by inserting before the period at the end of subsection (d) the 
following: ``or to a prime contract for the acquisition of commercial 
items (as defined in section 4(12) of such Act (41 U.S.C. 403(12))).''.
    (2) Section 8 of such Act (41 U.S.C. 58) is amended by adding at 
the end the following: ``This section does not apply with respect to a 
prime contract for the acquisition of commercial items (as defined in 
section 4(12) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(12))).''.
    (d) Cost Accounting Standards Board.--Section 26(f)(2) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) is 
amended--
        (1) by inserting ``(A)'' after ``(2)'';
        (2) by striking out ``, other than contracts or subcontracts'' 
    and all that follows and inserting in lieu thereof a period; and
        (3) by inserting at the end the following:
    ``(B) Subparagraph (A) does not apply to the following contracts or 
subcontracts:
        ``(i) Contracts or subcontracts where the price negotiated is 
    based on established catalog or market prices of commercial items 
    sold in substantial quantities to the general public.
        ``(ii) Contracts or subcontracts where the price negotiated is 
    based on prices set by law or regulation.
        ``(iii) Any other firm fixed-price contract or subcontract 
    (without cost incentives) for commercial items.
    ``(C) In this paragraph, the term `subcontract' includes a transfer 
of commercial items between divisions, subsidiaries, or affiliates of a 
contractor or subcontractor.''.
    (e) Certification Requirements.--Subsection (e)(1)(B) of section 27 
of the Office of Federal Procurement Policy Act (41 U.S.C. 423) is 
amended by inserting after ``certifies in writing to such contracting 
officer'' the following: ``, except in the case of a contract for the 
procurement of commercial items,''.
    (f) Drug-Free Workplace Act of 1988.--Section 5152(a)(1) of the 
Drug-Free Workplace Act of 1988 (subtitle D of title V of Public Law 
100-690; 41 U.S.C. 701 et seq.), as amended by section 4104(d), is 
further amended by inserting after the matter inserted by such section 
4104(d) the following: ``, other than a contract for the procurement of 
commercial items as defined in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403),''.
    (g) Clean Air Act.--The Federal Acquisition Regulation may not 
contain a requirement for a certification by a contractor under a 
contract for the acquisition of commercial items, or a requirement that 
such a contract include a contract clause, in order to implement a 
prohibition or requirement of section 306 of the Clean Air Act (42 
U.S.C. 7606) or a prohibition or requirement issued in the 
implementation of that section, since there is nothing in such section 
306 that requires such a certification or contract clause.
    (h) Fly American Requirements.--Section 40118 of title 49, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f)(1) No certification by a contractor, and no contract clause, 
may be required in the case of a contract for the transportation of 
commercial items in order to implement a requirement in this section.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.

SEC. 8302. FLEXIBLE DEADLINES FOR SUBMISSION OF OFFERS OF COMMERCIAL 
              ITEMS.

    Section 18(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 416(a)), as amended by section 4201(c), is further amended by 
adding at the end the following new paragraph:
    ``(6) The Administrator shall prescribe regulations defining 
limited circumstances in which flexible deadlines can be used under 
paragraph (3) for the submission of bids or proposals for the 
procurement of commercial items.''.

SEC. 8303. ADDITIONAL RESPONSIBILITIES FOR ADVOCATES FOR COMPETITION.

    (a) Responsibilities of the Advocate for Competition.--Section 
20(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 
418(c)) is amended to read as follows:
    ``(c) The advocate for competition for each procuring activity 
shall be responsible for promoting full and open competition, promoting 
the acquisition of commercial items, and challenging barriers to such 
acquisition, including such barriers as unnecessarily restrictive 
statements of need, unnecessarily detailed specifications, and 
unnecessarily burdensome contract clauses.''.
    (b) Repeal of Superseded Provision.--Section 28 of such Act (41 
U.S.C. 424) is repealed.

SEC. 8304. PROVISIONS NOT AFFECTED.

    Nothing in this title shall be construed as modifying or 
superseding, or as intended to impair or restrict, authorities or 
responsibilities under--
        (1) section 2323 of title 10, United States Code, or section 
    7102 of the Federal Acquisition Streamlining Act of 1994;
        (2) the Brooks Automatic Data Processing Act (section 111 of 
    the Federal Property and Administrative Services Act of 1949 (40 
    U.S.C. 759));
        (3) Brooks Architect-Engineers Act (title IX of the Federal 
    Property and Administrative Services Act of 1949 (40 U.S.C. 541 et 
    seq.));
        (4) subsections (a) and (d) of section 8 of the Small Business 
    Act (15 U.S.C. 637 (a) and (d)); or
        (5) the Javits-Wagner-O'Day Act (41 U.S.C. 46-48c).

SEC. 8305. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERNMENT USE OF 
              MARKET RESEARCH.

    (a) Report Required.--Not later than 2 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Congress a report on the use of market research by 
the Federal Government in support of the procurement of commercial 
items and nondevelopmental items.
    (b) Content of Report.--The report shall include the following:
        (1) A review of existing Federal Government market research 
    efforts to gather data concerning commercial and other 
    nondevelopmental items.
        (2) A review of the feasibility of creating a Government-wide 
    data base for storing, retrieving, and analyzing market data, 
    including use of existing Federal Government resources.
        (3) Any recommendations for changes in law or regulations that 
    the Comptroller General considers appropriate.

             TITLE IX--FEDERAL ACQUISITION COMPUTER NETWORK

SEC. 9001. FEDERAL ACQUISITION COMPUTER NETWORK ARCHITECTURE AND 
              IMPLEMENTATION.

    (a) Federal Acquisition Computer Network Architecture.--The Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by 
adding after section 29, as added by section 1093, the following new 
sections:

``SEC. 30. FEDERAL ACQUISITION COMPUTER NETWORK (FACNET) ARCHITECTURE.

    ``(a) In General.--(1) The Administrator shall establish a program 
for the development and implementation of a Federal acquisition 
computer network architecture (hereinafter in this section referred to 
as `FACNET') that will be Government-wide and provide interoperability 
among users. The Administrator shall assign a program manager for 
FACNET and shall provide for overall direction of policy and leadership 
in the development, coordination, installation, operation, and 
completion of implementation of FACNET by executive agencies.
    ``(2) In carrying out paragraph (1), the Administrator shall 
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.
    ``(3) Government-wide FACNET capability (as defined in section 
30A(b)) shall be implemented not later than January 1, 2000.
    ``(b) Functions of FACNET.--The FACNET architecture shall provide 
for the following functions:
        ``(1) Government functions.--Allow executive agencies to do the 
    following electronically:
            ``(A) Provide widespread public notice of solicitations for 
        contract opportunities issued by an executive agency.
            ``(B) Receive responses to solicitations and associated 
        requests for information through such system.
            ``(C) Provide public notice of contract awards (including 
        price) through such system.
            ``(D) In cases in which it is practicable, receive 
        questions regarding solicitations through such system.
            ``(E) In cases in which it is practicable, issue orders to 
        be made through such system.
            ``(F) In cases in which it is practicable, make payments to 
        contractors by bank card, electronic funds transfer, or other 
        automated methods.
            ``(G) Archive data relating to each procurement action made 
        using such system.
        ``(2) Private Sector User functions.--Allow private sector 
    users to do the following electronically:
            ``(A) Access notice of solicitations for contract 
        opportunities issued by an executive agency.
            ``(B) Access and review solicitations issued by an 
        executive agency.
            ``(C) Respond to solicitations issued by the executive 
        agency.
            ``(D) In cases in which it is practicable, receive orders 
        from the executive agency.
            ``(E) Access information on contract awards (including 
        price) made by the executive agency.
            ``(F) In cases in which it is practicable, receive payment 
        by bank card, electronic funds transfer, or other automated 
        means.
        ``(3) General functions.--
            ``(A) Allow the electronic interchange of procurement 
        information between the private sector and the Federal 
        Government and among Federal agencies.
            ``(B) Employ nationally and internationally recognized data 
        formats that serve to broaden and ease the electronic 
        interchange of data.
            ``(C) Allow convenient and universal user access through 
        any point of entry.
    ``(c) Notice and Solicitation Regulations.--In connection with 
implementation of the architecture referred to in subsection (a), the 
Federal Acquisition Regulatory Council shall ensure that the Federal 
Acquisition Regulation contains appropriate notice and solicitation 
provisions applicable to acquisitions conducted through a FACNET 
capability. The provisions shall specify the required form and content 
of notices of acquisitions and the minimum periods for notifications of 
solicitations and for deadlines for the submission of offers under 
solicitations. Each minimum period specified for a notification of 
solicitation and each deadline for the submission of offers under a 
solicitation shall afford potential offerors a reasonable opportunity 
to respond.
    ``(d) Architecture Defined.--For purposes of this section, the term 
`architecture' means the conceptual framework that--
        ``(1) uses a combination of commercial hardware and commercial 
    software to enable contractors to conduct business with the Federal 
    Government by electronic means; and
        ``(2) includes a description of the functions to be performed 
    to achieve the mission of streamlining procurement through 
    electronic commerce, the system elements and interfaces needed to 
    perform the functions, and the designation of performance levels of 
    those system elements.

``SEC. 30A. FEDERAL ACQUISITION COMPUTER NETWORK IMPLE- MENTATION.

    ``(a) Certification of FACNET Capability in Procuring Activities 
and Agencies.--(1) When the senior procurement executive of an 
executive agency or, in the case of the Department of Defense, the 
Under Secretary of Defense for Acquisition and Technology, determines 
that a procuring activity of the executive agency has implemented an 
interim FACNET capability (as defined in subsection (c)), the executive 
or the Under Secretary shall certify to the Administrator that such 
activity has implemented an interim FACNET capability.
    ``(2) When the head of an executive agency, with the concurrence of 
the Administrator for Federal Procurement Policy, determines that the 
executive agency has implemented a full FACNET capability (as defined 
in subsection (d)), the head of the executive agency shall certify to 
Congress that the executive agency has implemented a full FACNET 
capability.
    ``(3) The head of each executive agency shall provide for 
implementation of both interim FACNET capability and full FACNET 
capability, with priority on providing convenient and universal user 
access as required by section 30(b)(3)(C), in that executive agency as 
soon as practicable after the date of the enactment of the Federal 
Acquisition Streamlining Act of 1994.
    ``(b) Certification of Government-Wide FACNET Capability.--When the 
Administrator for Federal Procurement Policy determines that the 
Federal Government is making at least 75 percent of eligible contracts 
in amounts greater than the micro-purchase threshold and not greater 
than the simplified acquisition threshold entered into by the 
Government during the preceding fiscal year through a system with full 
FACNET capability, the Administrator shall certify to Congress that the 
Government has implemented a Government-wide FACNET capability.
    ``(c) Implementation of Interim FACNET Capability.--A procuring 
activity shall be considered to have implemented an interim FACNET 
capability if--
        ``(1) with respect to each procurement expected to be in an 
    amount greater than the micro-purchase threshold and not greater 
    than the simplified acquisition threshold, the procuring activity 
    has implemented the FACNET functions described in paragraphs 
    (1)(A), (1)(B), (2)(A), (2)(B), and (2)(C) of section 30(b); and
        ``(2) for each such procurement (other than a procurement for 
    which notice is not required under section 18(c) or with respect to 
    which the head of the procuring activity determines that it is not 
    cost effective or practicable), the procuring activity issues 
    notices of solicitations and receives responses to solicitations 
    through a system having those functions.
    ``(d) Implementation of Full FACNET Capability.--An executive 
agency shall be considered to have implemented a full FACNET capability 
if (except in the case of procuring activities (or portions thereof) of 
the executive agency for which the head of the executive agency 
determines that implementation is not cost effective or practicable)--
        ``(1) the executive agency has implemented all of the FACNET 
    functions described in section 30(b); and
        ``(2) more than 75 percent of the eligible contracts in amounts 
    greater than the micro-purchase threshold and not greater than the 
    simplified acquisition threshold entered into by the executive 
    agency during the preceding fiscal year have been made through a 
    system with those functions.
    ``(e) Eligible Contracts.--For purposes of subsections (b) and (d), 
a contract is eligible if it is not in any class of contracts 
determined by the Federal Acquisition Regulatory Council (pursuant to 
section 9004 of the Federal Acquisition Streamlining Act of 1994) to be 
unsuitable for acquisition through a system with full FACNET 
capability.''.
    (b) Technical Amendments.--Section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) is amended--
        (1) in subsection (a)(1)(A), by striking out ``notice'' in the 
    matter following clause (ii) and inserting in lieu thereof ``notice 
    of solicitation''; and
        (2) in subsection (d), by striking out ``a notice under 
    subsection (e)'' in the first sentence and inserting in lieu 
    thereof ``a notice of solicitation under subsection (a)''.

SEC. 9002. IMPLEMENTATION OF FACNET CAPABILITY IN ARMED SERVICES.

    (a) Implementation in Title 10.--Chapter 137 of title 10, United 
States Code, is amended by inserting after section 2302b, as added by 
section 4203, the following new section:

``Sec. 2302c. Implementation of FACNET capability

    ``(a) Implementation of FACNET Capability.--(1) The head of each 
agency named in section 2303 of this title shall implement the Federal 
acquisition computer network (`FACNET') capability required by section 
30 of the Office of Federal Procurement Policy Act. In the case of the 
Department of Defense, the implementation shall be by the Secretary of 
Defense, acting through the Under Secretary of Defense for Acquisition 
and Technology, for the Department of Defense as a whole. For purposes 
of this section, the term `head of an agency' does not include the 
Secretaries of the military departments.
    ``(2) In implementing the FACNET capability pursuant to paragraph 
(1), the head of an agency shall consult with the Administrator for 
Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each agency 
named in paragraph (5) or (6) of section 2303 of this title shall 
designate a program manager to have responsibility for implementation 
of FACNET capability for that agency and otherwise to implement this 
section. Such program manager shall report directly to the senior 
procurement executive designated for the agency under section 16(3) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 137 of such title is amended by inserting after the item 
relating to section 2302b the following new item:
``2302c. Implementation of FACNET capability.''.

    (c) Effective Date.--A FACNET capability may be implemented and 
used in an agency before the promulgation of regulations implementing 
this section (as provided in section 10002). If such implementation and 
use occurs, the period for submission of bids or proposals under 
section 18(a)(3)(B) of the Office of Federal Procurement Policy Act, in 
the case of a solicitation through FACNET, may be less than the period 
otherwise applicable under that section, but shall be at least 10 days. 
The preceding sentence shall not be in effect after September 30, 1995.

SEC. 9003. IMPLEMENTATION OF FACNET CAPABILITY IN CIVILIAN AGENCIES.

    Title III of the Federal Property and Administrative Services Act 
of 1949 is amended by inserting after section 302B, as added by section 
4203, the following new section:

``SEC. 302C. IMPLEMENTATION OF FACNET CAPABILITY.

    ``(a) Implementation of FACNET Capability.--(1) The head of each 
executive agency shall implement the Federal acquisition computer 
network (`FACNET') capability required by section 30 of the Office of 
Federal Procurement Policy Act.
    ``(2) In implementing the FACNET capability pursuant to paragraph 
(1), the head of an executive agency shall consult with the 
Administrator for Federal Procurement Policy.
    ``(b) Designation of Agency Official.--The head of each executive 
agency shall designate a program manager to have responsibility for 
implementation of FACNET capability for that agency and otherwise to 
implement this section. Such program manager shall report directly to 
the senior procurement executive designated for the executive agency 
under section 16(3) of the Office of Federal Procurement Policy Act (41 
U.S.C. 414(3)).''.

SEC. 9004. GAO DETERMINATION OF ELIGIBLE AGENCY CONTRACTS.

    (a) Report on Contracts Not Suitable for Acquisition Through Full 
FACNET Capability.--Not later than 3 years after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Administrator for Federal Procurement Policy and the congressional 
committees referred to in subsection (d) a report on the classes of 
contracts in amounts greater than the micro-purchase threshold and not 
greater than the simplified acquisition threshold that are not suitable 
for acquisition through a system with full FACNET capability.
    (b) FAR Council Determinations.--Not earlier than 3 years after the 
date of the enactment of this Act, and after consideration of the 
report of the Comptroller General required by subsection (a), the 
Federal Acquisition Regulatory Council (established by section 25 of 
the Office of Federal Procurement Policy Act) may make a determination 
that a class or classes of contracts in amounts greater than the micro-
purchase threshold and not greater than the simplified acquisition 
threshold are not suitable for acquisition through a system with full 
FACNET capability. Any such determination shall be submitted to the 
congressional committees referred to in subsection (d). Each 
determination under this subsection shall take effect 60 days after the 
date on which it is submitted to those committees.
    (c) Applicability of Determinations.--Each determination under 
subsection (b) shall apply for purposes of determining eligible 
contracts under section 30A(e) of the Office of Federal Procurement 
Policy Act, as added by section 9001.
    (d) Committees.--The report required by subsection (a), and any 
determination made under subsection (b), shall be submitted to the 
Committees on Governmental Affairs, on Armed Services, and on Small 
Business of the Senate and the Committees on Government Operations, on 
Armed Services, and on Small Business of the House of Representatives.
    (e) Definitions.--In this section:
        (1) The term ``simplified acquisition threshold'' has the 
    meaning provided by section 4(11) of the Office of Federal 
    Procurement Policy Act, as amended by section 4001.
        (2) The term ``micro-purchase threshold'' has the meaning 
    provided by section 32(g) of the Office of Federal Procurement 
    Policy Act, as added by section 4301.
        (3) The term ``full FACNET capability'' has the meaning 
    described in section 30A(d) of the Office of Federal Procurement 
    Policy Act, as added by section 9001(a).

              TITLE X--EFFECTIVE DATES AND IMPLEMENTATION

SEC. 10001. EFFECTIVE DATE AND APPLICABILITY.

    (a) Effective Date.--Except as otherwise provided in this Act, this 
Act and the amendments made by this Act shall take effect on the date 
of the enactment of this Act.
    (b) Applicability of Amendments.--(1) An amendment made by this Act 
shall apply, in the manner prescribed in the final regulations 
promulgated pursuant to section 10002 to implement such amendment, with 
respect to any solicitation that is issued, any unsolicited proposal 
that is received, and any contract entered into pursuant to such a 
solicitation or proposal, on or after the date described in paragraph 
(3).
    (2) An amendment made by this Act shall also apply, to the extent 
and in the manner prescribed in the final regulations promulgated 
pursuant to section 10002 to implement such amendment, with respect to 
any matter related to--
        (A) a contract that is in effect on the date described in 
    paragraph (3);
        (B) an offer under consideration on the date described in 
    paragraph (3); or
        (C) any other proceeding or action that is ongoing on the date 
    described in paragraph (3).
    (3) The date referred to in paragraphs (1) and (2) is the date 
specified in such final regulations. The date so specified shall be 
October 1, 1995, or any earlier date that is not within 30 days after 
the date on which such final regulations are published.
    (c) Immediate Applicability of Certain Amendments.--Notwithstanding 
subsection (b), the amendments made by the following provisions of this 
Act apply on and after the date of the enactment of this Act: sections 
1001, 1021, 1031, 1051, 1071, 1092, 1201, 1506(a), 1507, 1554, 2002(a), 
2191, 3062(a), 3063, 3064, 3065(a)(1), 3065(b), 3066, 3067, 6001(a), 
7101, 7103, 7205, and 7206, the provisions of subtitles A, B, and C of 
title III, and the provisions of title V.

SEC. 10002. IMPLEMENTING REGULATIONS.

    (a) Proposed Revisions.--Proposed revisions to the Federal 
Acquisition Regulation and such other proposed regulations (or 
revisions to existing regulations) as may be necessary to implement 
this Act shall be published in the Federal Register not later than 210 
days after the date of the enactment of this Act.
    (b) Public Comment.--The proposed regulations described in 
subsection (a) shall be made available for public comment for a period 
of not less than 60 days.
    (c) Final Regulations.--Final regulations shall be published in the 
Federal Register not later than 330 days after the date of enactment of 
this Act.
    (d) Modifications.--Final regulations promulgated pursuant to this 
section to implement an amendment made by this Act may provide for 
modification of an existing contract without consideration upon the 
request of the contractor.
    (e) Requirement for Clarity.--Officers and employees of the Federal 
Government who prescribe regulations to implement this Act and the 
amendments made by this Act shall make every effort practicable to 
ensure that the regulations are concise and are easily understandable 
by potential offerors as well as by Government officials.
    (f) Savings Provisions.--(1) Nothing in this Act shall be construed 
to affect the validity of any action taken or any contract entered into 
before the date specified in the regulations pursuant to section 
10001(b)(3) except to the extent and in the manner prescribed in such 
regulations.
    (2) Except as specifically provided in this Act, nothing in this 
Act shall be construed to require the renegotiation or modification of 
contracts in existence on the date of the enactment of this Act.
    (3) Except as otherwise provided in this Act, a law amended by this 
Act shall continue to be applied according to the provisions thereof as 
such law was in effect on the day before the date of the enactment of 
this Act until--
        (A) the date specified in final regulations implementing the 
    amendment of that law (as promulgated pursuant to this section); or
        (B) if no such date is specified in regulations, October 1, 
    1995.

SEC. 10003. EVALUATION BY THE COMPTROLLER GENERAL.

    (a) Evaluation Relating to Issuance of Regulations.--Not later than 
180 days after the issuance in final form of revisions to the Federal 
Acquisition Regulation pursuant to section 10002, the Comptroller 
General shall submit to Congress a report evaluating compliance with 
such section.
    (b) Evaluation of Implementation of Regulations.--Not later than 18 
months after issuance in final form of revisions to the Federal 
Acquisition Regulation pursuant to section 10002, the Comptroller 
General shall submit to the committees referred to in subsection (c) a 
report evaluating the effectiveness of the regulations implementing 
this Act in streamlining the acquisition system and fulfilling the 
other purposes of this Act.
    (c) Committees Designated To Receive the Reports.--The Comptroller 
General shall submit the reports required by this section to--
        (1) the Committees on Governmental Affairs, on Armed Services, 
    and on Small Business of the Senate; and
        (2) the Committees on Government Operations, on Armed Services, 
    and on Small Business of the House of Representatives.

SEC. 10004. DATA COLLECTION THROUGH THE FEDERAL PROCUREMENT DATA 
              SYSTEM.

    (a) Data Collection Required.--The Federal Procurement Data System 
described in section 6(d)(4)(A) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect from 
contracts in excess of the simplified acquisition threshold data 
identifying the following matters:
        (1) Contract awards made pursuant to competitions conducted 
    pursuant to section 2323 of title 10, United States Code, or 
    section 7102 of the Federal Acquisition Streamlining Act of 1994.
        (2) Awards to business concerns owned and controlled by women.
        (3) Number of offers received in response to a solicitation.
        (4) Task order contracts.
        (5) Contracts for the acquisition of commercial items.
    (b) Definition.--In this section, the term ``simplified acquisition 
threshold'' has the meaning given such term in section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).

SEC. 10005. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Table of Contents Amendments.--
        (1) Office of federal procurement policy act.--The first 
    section of the Office of Federal Procurement Policy Act (41 U.S.C. 
    401 note) is amended to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Office of Federal 
Procurement Policy Act'.
    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Declaration of policy.
``Sec. 3. Findings and purpose.
``Sec. 4. Definitions.
``Sec. 5. Office of Federal Procurement Policy.
``Sec. 6. Authority and functions of the Administrator.
``Sec. 7. Administrative powers.
``Sec. 8. Responsiveness to Congress.
``Sec. 9. Effect on existing laws.
``Sec. 10. Effect on existing regulations.
``Sec. 11. Authorization of appropriations.
``Sec. 12. Delegation.
``Sec. 14. Access to information.
``Sec. 15. Tests of innovative procurement methods and procedures.
``Sec. 16. Executive agency responsibilities.
``Sec. 18. Procurement notice.
``Sec. 19. Record requirements.
``Sec. 20. Advocates for competition.
``Sec. 21. Rights in technical data.
``Sec. 22. Publication of proposed regulations.
``Sec. 23. Contracting functions performed by Federal personnel.
``Sec. 25. Federal Acquisition Regulatory Council.
``Sec. 26. Cost Accounting Standards Board.
``Sec. 27. Procurement integrity.
``Sec. 28. Advocate for the Acquisition of Commercial Products.
``Sec. 29. Nonstandard contract clauses.
``Sec. 30. Federal acquisition computer network (FACNET).
``Sec. 30A. Federal acquisition computer network implementation.
``Sec. 31. Simplified acquisition procedures.
``Sec. 32. Procedures applicable to purchases below micro-purchase 
          threshold.
``Sec. 33. List of laws inapplicable to contracts not greater than the 
          simplified acquisition threshold in Federal Acquisition 
          Regulation.
``Sec. 34. List of laws inapplicable to procurements of commercial items 
          in Federal Acquisition Regulation.''.

        (2) Federal property and administrative services act of 1949.--
    The first section of the Federal Property and Administrative 
    Services Act of 1949 (41 U.S.C. 471 et seq.) is amended to read as 
    follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Federal Property 
and Administrative Services Act of 1949'.
    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Declaration of policy.
``Sec. 3. Definitions.

                         ``TITLE I--ORGANIZATION

``Sec. 101. General Services Administration.
``Sec. 102. Transfer of affairs of Bureau of Federal Supply.
``Sec. 103. Transfer of affairs of the Federal Works Agency.
``Sec. 104. Records management: Transfer of the National Archives.
``Sec. 106. Redistribution of functions.
``Sec. 107. Transfer of funds.
``Sec. 109. General supply fund.
``Sec. 110. Information Technology Fund.
``Sec. 111. Automatic data processing equipment.
``Sec. 112. Federal information centers.

                     ``TITLE II--PROPERTY MANAGEMENT

``Sec. 201. Procurement, warehousing, and related activities.
``Sec. 202. Property utilization.
``Sec. 203. Disposal of surplus property.
``Sec. 204. Proceeds from transfer or disposition of property.
``Sec. 205. Policies, regulations, and delegations.
``Sec. 206. Surveys, standardization, and cataloging.
``Sec. 207. Applicability of antitrust laws.
``Sec. 208. Employment of personnel.
``Sec. 209. Civil remedies and penalties.
``Sec. 210. Operation of buildings and related activities.
``Sec. 211. Motor vehicle identification and operation.
``Sec. 212. Reports to Congress.

                   ``TITLE III--PROCUREMENT PROCEDURE

``Sec. 301. Declaration of purpose.
``Sec. 302. Application and procurement methods.
``Sec. 302A. Simplified acquisition threshold.
``Sec. 302B. Implementation of simplified acquisition procedures.
``Sec. 302C. Implementation of FACNET capability.
``Sec. 303. Competition requirements.
``Sec. 303A. Planning and solicitation requirements.
``Sec. 303B. Evaluation and award.
``Sec. 303C. Encouragement of new competition.
``Sec. 303D. Validation of proprietary data restrictions.
``Sec. 303F. Economic order quantities.
``Sec. 303G. Prohibition of contractors limiting subcontractor sales 
          directly to the United States.
``Sec. 303H. Task and delivery order contracts: general authority.
``Sec. 303I. Task order contracts: advisory and assistance services.
``Sec. 303J. Task and delivery order contracts: orders.
``Sec. 303K. Task and delivery order contracts: definitions.
``Sec. 303L. Severable services contracts for periods crossing fiscal 
          years.
``Sec. 304. Contract requirements.
``Sec. 304A. Cost or pricing data: truth in negotiations.
``Sec. 304B. Multiyear contracts.
``Sec. 304C. Examination of records of contractor.
``Sec. 305. Contract financing.
``Sec. 306. Allowable costs.
``Sec. 307. Administrative determinations and delegations.
``Sec. 309. Definitions.
``Sec. 310. Statutes not applicable.
``Sec. 311. Assignment and delegation of procurement functions and 
          responsibilities.
``Sec. 312. Determinations and decisions.
``Sec. 313. Performance based management: acquisition programs.
``Sec. 314. Relationship of commercial item provisions to other 
          provisions of law.
``Sec. 314A. Definitions relating to procurement of commercial items.
``Sec. 314B. Preference for acquisition of commercial items.
``Sec. 315. Contractor employees: protection from reprisal for 
          disclosure of certain information.

                   ``TITLE IV--FOREIGN EXCESS PROPERTY

``Sec. 401. Disposal of foreign excess property.
``Sec. 402. Methods and terms of disposal.
``Sec. 403. Proceeds; foreign currencies.
``Sec. 404. Miscellaneous provisions.

                     ``TITLE VI--GENERAL PROVISIONS

``Sec. 601. Applicability of existing procedures.
``Sec. 602. Repeal and saving provisions.
``Sec. 603. Authorization for appropriations and transfer of authority.
``Sec. 604. Separability.
``Sec. 605. Effective date.

                  ``TITLE VIII--URBAN LAND UTILIZATION

``Sec. 801. Short title.
``Sec. 802. Declaration of purpose and policy.
``Sec. 803. Disposal of urban lands.
``Sec. 804. Acquisition or change of use of real property.
``Sec. 805. Waiver during national emergency.
``Sec. 806. Definitions.

            ``TITLE IX--SELECTION OF ARCHITECTS AND ENGINEERS

``Sec. 901. Definitions.
``Sec. 902. Policy.
``Sec. 903. Requests for data on architectural and engineering services.
``Sec. 904. Negotiation of contracts for architectural and engineering 
          services.
``Sec. 905. Short title.''.

    (b) Amendments for Stylistic Consistency.--
        (1) Office of federal procurement policy act.--The Office of 
    Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended 
    so that the section designation and section heading of each section 
    of such Act is in the same form and typeface as the section 
    designation and heading of this section.
        (2) Federal property and administrative services act of 1949.--
    The Federal Property and Administrative Services Act of 1949 (41 
    U.S.C. 471 et seq.) is amended so that the section designation and 
    section heading of each section of such Act is in the same form and 
    typeface as the section designation and heading of this section.
    (c) Repeals of Executed Provisions.--The Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.) is amended--
        (1) by striking out section 13; and
        (2) by striking out the first section 15 (which made amendments 
    to the Federal Property and Administrative Services Act of 1949).
    (d) Cross Reference Corrections.--Section 3552 of title 31, United 
States Code, is amended--
        (1) by striking out ``section 111(h)'' and inserting in lieu 
    thereof ``section 111(f)''; and
        (2) by striking out ``759(h)'' and inserting in lieu thereof 
    ``759(f)''.
    (e) Consistency of Terminology With Customary Usage.--Section 
304(b) of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 254(b)) is amended by striking out ``per centum'' each place 
it appears and inserting in lieu thereof ``percent''.
    (f) Enactment of Popular Names of Certain Acts.--
        (1) Miller act.--The Act of August 24, 1935 (40 U.S.C. 270a-
    270d), commonly referred to as the ``Miller Act'', is amended by 
    adding at the end the following new section:
    ``Sec. 6. This Act may be cited as the `Miller Act'.''.
        (2) Brooks architect-engineers act.--Title IX of the Federal 
    Property and Administrative Services Act of 1949 (40 U.S.C. 541-
    544) is amended by adding at the end the following new section:

``SEC. 905. SHORT TITLE.

    ``This title may be cited as the `Brooks Architect-Engineers 
Act'.''.
        (3) Brooks automatic data processing act.--Section 111 of the 
    Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
    759), as amended by section 1439, is further amended by adding at 
    the end the following new subsection:
    ``(i) This section may be cited as the `Brooks Automatic Data 
Processing Act'.''.
        (4) Buy american act.--The Act of March 3, 1933 (41 U.S.C. 10a-
    10c), commonly referred to as the ``Buy American Act'', is amended 
    by adding at the end the following new section:
    ``Sec. 5. This Act may be cited as the `Buy American Act'.''.
        (5) Walsh-healey act.--The Act of June 30, 1936 (41 U.S.C. 35 
    et seq.), commonly referred to as the ``Walsh-Healey Act'', as 
    amended by section 7201, is further amended by adding at the end 
    the following new section:
    ``Sec. 12. This Act may be cited as the `Walsh-Healey Act'.''.
        (6) Javits-wagner-o'day act.--The Act entitled `An Act to 
    create a Committee on Purchases of Blind-made Products, and for 
    other purposes', approved June 25, 1938 (41 U.S.C. 46-48c), that 
    was revised and reenacted in the Act of June 23, 1971 (85 Stat. 
    77), is amended by adding at the end the following new section:


                              ``short title

    ``Sec. 7. This Act may be cited as the `Javits-Wagner-O'Day 
Act'.''.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.