H.R.1837 - Services Acquisition Reform Act of 2003108th Congress (2003-2004)
Bill
Hide OverviewSponsor: | Rep. Davis, Tom [R-VA-11] (Introduced 04/29/2003) |
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Committees: | House - Government Reform; Armed Services; Judiciary |
Committee Reports: | H. Rept. 108-117,Part 1; H. Rept. 108-117,Part 2 |
Latest Action: | House - 09/03/2003 Placed on the Union Calendar, Calendar No. 140. (All Actions) |
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Reported in House (09/03/2003)
[Congressional Bills 108th Congress] [From the U.S. Government Printing Office] [H.R. 1837 Reported in House (RH)] Union Calendar No. 140 108th CONGRESS 1st Session H. R. 1837 [Report No. 108-117, Parts I and II] To improve the Federal acquisition workforce and the process for the acquisition of services by the Federal Government, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 29, 2003 Mr. Tom Davis of Virginia (for himself and Mr. Hunter) introduced the following bill; which was referred to the Committee on Government Reform, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned May 19, 2003 Reported from the Committee on Government Reform with an amendment [Strike out all after the enacting clause and insert the part printed in italic] May 19, 2003 Referred to the Committee on the Judiciary for a period ending not later than May 20, 2003 for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(k), rule X May 19, 2003 Referral to the Committee on Armed Services extended for a period ending not later than May 20, 2003 May 20, 2003 Referral to the Committee on Armed Services and the Judiciary extended for a period ending not later than July 25, 2003 July 25, 2003 The Committee on Armed Services discharged July 25, 2003 Referral to the Committee on the Judiciary extended for a period ending not later than September 3, 2003 September 3, 2003 Reported from the Committee on the Judiciary with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on April 29, 2003] _______________________________________________________________________ A BILL To improve the Federal acquisition workforce and the process for the acquisition of services by 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; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Services Acquisition Reform Act of 2003''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Executive agency defined. TITLE I--ACQUISITION WORKFORCE AND TRAINING Sec. 101. Definition of acquisition. Sec. 102. Acquisition workforce training fund. Sec. 103. Government-industry exchange program. Sec. 104. Acquisition workforce recruitment program. Sec. 105. Architectural and engineering acquisition workforce. TITLE II--ADAPTATION OF BUSINESS ACQUISITION PRACTICES Subtitle A--Adaptation of Business Management Practices Sec. 201. Chief Acquisition Officers. Sec. 202. Chief Acquisition Officers Council. Sec. 203. Statutory and regulatory review. Subtitle B--Other Acquisition Improvements Sec. 211. Extension of authority to carry out franchise fund programs. Sec. 212. Agency acquisition protests. Sec. 213. Improvements in contracting for architectural and engineering services. Sec. 214. Authorization of telecommuting for Federal contractors. Sec. 215. Procedural requirements for civilian agencies relating to products of Federal Prison Industries. TITLE III--CONTRACT INCENTIVES Sec. 301. Share-in-savings initiatives. Sec. 302. Incentives for contract efficiency. TITLE IV--ACQUISITIONS OF COMMERCIAL ITEMS Sec. 401. Preference for performance-based contracting. Sec. 402. Authorization of additional commercial contract types. Sec. 403. Clarification of commercial services definition. Sec. 404. Designation of commercial business entities. TITLE V--OTHER MATTERS Sec. 501. Authority to enter into certain procurement-related transactions and to carry out certain prototype projects. Sec. 502. Amendments relating to Federal emergency procurement flexibility. Sec. 503. Authority to make inflation adjustments to simplified acquisition threshold. Sec. 504. Technical corrections related to duplicative amendments. Sec. 505. Exemption from limitations on procurement of foreign information technology that is a commercial item. Sec. 506. Prohibition on use of quotas. Sec. 507. Public disclosure of noncompetitive contracting for the reconstruction of infrastructure in Iraq. Sec. 508. Applicability of certain provisions to sole source contracts for goods and services treated as commercial items. SEC. 2. EXECUTIVE AGENCY DEFINED. In this Act, the term ``executive agency'' has the meaning given that term in section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)), unless specifically stated otherwise. TITLE I--ACQUISITION WORKFORCE AND TRAINING SEC. 101. DEFINITION OF ACQUISITION. Section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403) is amended by adding at the end the following: ``(16) The term `acquisition'-- ``(A) means the process of acquiring, with appropriated funds, by contract for purchase or lease, property or services (including construction) that support the missions and goals of an executive agency, from the point at which the requirements of the executive agency are established in consultation with the chief acquisition officer of the executive agency; and ``(B) includes-- ``(i) the process of acquiring property or services that are already in existence, or that must be created, developed, demonstrated, and evaluated; ``(ii) the description of requirements to satisfy agency needs; ``(iii) solicitation and selection of sources; ``(iv) award of contracts; ``(v) contract performance; ``(vi) contract financing: ``(vii) management and measurement of contract performance through final delivery and payment; and ``(viii) technical and management functions directly related to the process of fulfilling agency requirements by contract.''. SEC. 102. ACQUISITION WORKFORCE TRAINING FUND. (a) Purposes.--The purposes of this section are to ensure that the Federal acquisition workforce-- (1) adapts to fundamental changes in the nature of Federal Government acquisition of property and services associated with the changing roles of the Federal Government; and (2) acquires new skills and a new perspective to enable it to contribute effectively in the changing environment of the 21st century. (b) Establishment of Fund.--Section 37 of the Office of Federal Procurement Policy Act (41 U.S.C. 433) is amended by adding at the end of subsection (h) the following new paragraph: ``(3) Acquisition workforce training fund.--(A) The Administrator of General Services shall establish an acquisition workforce training fund. The Administrator shall manage the fund through the Federal Acquisition Institute to support the training of the acquisition workforce of the executive agencies other than the Department of Defense. The Administrator shall consult with the Administrator for Federal Procurement Policy in managing the fund. ``(B) There shall be credited to the acquisition workforce training fund 5 percent of the fees collected by executive agencies under the following contracts: ``(i) Governmentwide task and delivery-order contracts entered into under sections 2304a and 2304b of title 10, United States Code, or sections 303H and 303I of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h and 253i). ``(ii) Governmentwide contracts for the acquisition of information technology as defined in section 11101 of title 40, United States Code, and multiagency acquisition contracts for such technology authorized by section 11314 of such title. ``(iii) Multiple-award schedule contracts entered into by the Administrator of General Services. ``(C) The head of an executive agency that administers a contract described in subparagraph (B) shall remit to the General Services Administration the amount required to be credited to the fund with respect to such contract at the end of each quarter of the fiscal year. ``(D) The Administrator of General Services, through the Office of Federal Acquisition Policy, shall ensure that funds collected for training under this section are not used for any purpose other than the purpose specified in subparagraph (A). ``(E) Amounts credited to the fund shall be in addition to funds requested and appropriated for education and training referred to in paragraph (1). ``(F) Amounts credited to the fund shall remain available until expended.''. SEC. 103. GOVERNMENT-INDUSTRY EXCHANGE PROGRAM. (a) In General.--Subpart B of part III of title 5, United States Code, is amended by adding at the end the following: ``CHAPTER 38--ACQUISITION PROFESSIONAL EXCHANGE PROGRAM ``Sec. ``3801. Definitions. ``3802. General provisions. ``3803. Assignment of employees to private sector organizations. ``3804. Assignment of employees from private sector organizations. ``3805. Reporting requirement. ``3806. Regulations. ``Sec. 3801. Definitions ``For purposes of this chapter-- ``(1) the term `agency'-- ``(A) subject to subparagraph (B), means an executive agency; and ``(B) does not include-- ``(i) the General Accounting Office; ``(ii) an Office of Inspector General of an establishment or a designated Federal entity established under the Inspector General Act of 1978; and ``(iii) the Defense Contract Audit Agency referred to in section 2313(b) of title 10; and ``(2) the term `detail' means-- ``(A) the assignment or loan of an employee of an agency to a private sector organization without a change of position from the agency that employs the individual, or ``(B) the assignment or loan of an employee of a private sector organization to an agency without a change of position from the private sector organization that employs the individual, whichever is appropriate in the context in which such term is used. ``Sec. 3802. General provisions ``(a) Assignment Authority.--On request from or with the agreement of a private sector organization, and with the consent of the employee concerned, the head of an agency may arrange for the assignment of an employee of the agency to a private sector organization or an employee of a private sector organization to the agency. An eligible employee is an individual who-- ``(1) works in the field of Federal acquisition or acquisition management; ``(2) is considered an exceptional performer by the individual's current employer; and ``(3) is expected to assume increased acquisition management responsibilities in the future. An employee of an agency shall be eligible to participate in this program only if the employee is employed at the GS-11 level or above (or equivalent) and is serving under a career or career-conditional appointment or an appointment of equivalent tenure in the excepted service. ``(b) Agreements.--Each agency that exercises its authority under this chapter shall provide for a written agreement between the agency and the employee concerned regarding the terms and conditions of the employee's assignment. In the case of an employee of the agency, the agreement shall-- ``(1) require the employee to serve in the civil service, upon completion of the assignment, for a period equal to the length of the assignment; and ``(2) provide that, in the event the employee fails to carry out the agreement (except for good and sufficient reason, as determined by the head of the agency from which assigned) the employee shall be liable to the United States for payment of all expenses of the assignment. An amount under paragraph (2) shall be treated as a debt due the United States. ``(c) Termination.--Assignments may be terminated by the agency or private sector organization concerned for any reason at any time. ``(d) Duration.--Assignments under this chapter shall be for a period of between 6 months and 1 year, and may be extended in 3-month increments for a total of not more than 1 additional year, except that no assignment under this chapter may commence after the end of the 5- year period beginning on the date of the enactment of this chapter. ``(e) Assistance.--The Administrator for Federal Procurement Policy, by agreement with the Office of Personnel Management, may assist in the administration of this chapter, including by maintaining lists of potential candidates for assignment under this chapter, establishing mentoring relationships for the benefit of individuals who are given assignments under this chapter, and publicizing the program. ``(f) Considerations.--In exercising any authority under this chapter, an agency shall take into consideration-- ``(1) the need to ensure that small business concerns are appropriately represented with respect to the assignments described in sections 3803 and 3804, respectively; and ``(2) how assignments described in section 3803 might best be used to help meet the needs of the agency for the training of employees in acquisition management. ``Sec. 3803. Assignment of employees to private sector organizations ``(a) In General.--An employee of an agency assigned to a private sector organization under this chapter is deemed, during the period of the assignment, to be on detail to a regular work assignment in his agency. ``(b) Coordination With Chapter 81.--Notwithstanding any other provision of law, an employee of an agency assigned to a private sector organization under this chapter is entitled to retain coverage, rights, and benefits under subchapter I of chapter 81, and employment during the assignment is deemed employment by the United States, except that, if the employee or the employee's dependents receive from the private sector organization any payment under an insurance policy for which the premium is wholly paid by the private sector organization, or other benefit of any kind on account of the same injury or death, then, the amount of such payment or benefit shall be credited against any compensation otherwise payable under subchapter I of chapter 81. ``(c) Reimbursements.--The assignment of an employee to a private sector organization under this chapter may be made with or without reimbursement by the private sector organization for the travel and transportation expenses to or from the place of assignment, subject to the same terms and conditions as apply with respect to an employee of a Federal agency or a State or local government under section 3375, and for the pay, or a part thereof, of the employee during assignment. Any reimbursements shall be credited to the appropriation of the agency used for paying the travel and transportation expenses or pay. ``(d) Tort Liability; Supervision.--The Federal Tort Claims Act and any other Federal tort liability statute apply to an employee of an agency assigned to a private sector organization under this chapter. The supervision of the duties of an employee of an agency so assigned to a private sector organization may be governed by an agreement between the agency and the organization. ``(e) Small Business Concerns.-- ``(1) In general.--The head of each agency shall take such actions as may be necessary to ensure that, of the assignments made under this chapter from such agency to private sector organizations in each year, at least 20 percent are to small business concerns. ``(2) Definitions.--For purposes of this subsection-- ``(A) the term `small business concern' means a business concern that satisfies the definitions and standards specified by the Administrator of the Small Business Administration under section 3(a)(2) of the Small Business Act (as from time to time amended by the Administrator); ``(B) the term `year' refers to the 12-month period beginning on the date of the enactment of this chapter, and each succeeding 12-month period in which any assignments under this chapter may be made; and ``(C) the assignments `made' in a year are those commencing in such year. ``(3) Reporting requirement.--An agency which fails to comply with paragraph (1) in a year shall, within 90 days after the end of such year, submit a report to the Committees on Government Reform and Small Business of the House of Representatives and the Committees on Governmental Affairs and Small Business of the Senate. The report shall include-- ``(A) the total number of assignments made under this chapter from such agency to private sector organizations in the year; ``(B) of that total number, the number (and percentage) made to small business concerns; and ``(C) the reasons for the agency's noncompliance with paragraph (1). ``(4) Exclusion.--This subsection shall not apply to an agency in any year in which it makes fewer than 5 assignments under this chapter to private sector organizations. ``Sec. 3804. Assignment of employees from private sector organizations ``(a) In General.--An employee of a private sector organization assigned to an agency under this chapter is deemed, during the period of the assignment, to be on detail to such agency. ``(b) Terms and Conditions.--An employee of a private sector organization assigned to an agency under this chapter-- ``(1) may continue to receive pay and benefits from the private sector organization from which he is assigned; ``(2) is deemed, notwithstanding subsection (a), to be an employee of the agency for the purposes of-- ``(A) chapter 73; ``(B) sections 201, 203, 205, 207, 208, 209, 603, 606, 607, 643, 654, 1905, and 1913 of title 18; ``(C) sections 1343, 1344, and 1349(b) of title 31; ``(D) the Federal Tort Claims Act and any other Federal tort liability statute; ``(E) the Ethics in Government Act of 1978; ``(F) section 1043 of the Internal Revenue Code of 1986; and ``(G) section 27 of the Office of Federal Procurement Policy Act; ``(3) may not have access to any trade secrets or to any other nonpublic information which is of commercial value to the private sector organization from which he is assigned; and ``(4) is subject to such regulations as the President may prescribe. The supervision of an employee of a private sector organization assigned to an agency under this chapter may be governed by agreement between the agency and the private sector organization concerned. Such an assignment may be made with or without reimbursement by the agency for the pay, or a part thereof, of the employee during the period of assignment, or for any contribution of the private sector organization to employee benefit systems. ``(c) Coordination With Chapter 81.--An employee of a private sector organization assigned to an agency under this chapter who suffers disability or dies as a result of personal injury sustained while performing duties during the assignment shall be treated, for the purpose of subchapter I of chapter 81, as an employee as defined by section 8101 who had sustained the injury in the performance of duty, except that, if the employee or the employee's dependents receive from the private sector organization any payment under an insurance policy for which the premium is wholly paid by the private sector organization, or other benefit of any kind on account of the same injury or death, then, the amount of such payment or benefit shall be credited against any compensation otherwise payable under subchapter I of chapter 81. ``(d) Prohibition Against Charging Certain Costs to the Federal Government.--A private sector organization may not charge the Federal Government, as direct or indirect costs under a Federal contract, the costs of pay or benefits paid by the organization to an employee assigned to an agency under this chapter for the period of the assignment. ``Sec. 3805. Reporting requirement ``(a) In General.--The Office of Personnel Management shall, not later than April 30 and October 31 of each year, prepare and submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate a semiannual report summarizing the operation of this chapter during the immediately preceding 6-month period ending on March 31 and September 30, respectively. ``(b) Content.--Each report shall include, with respect to the 6- month period to which such report relates-- ``(1) the total number of individuals assigned to, and the total number of individuals assigned from, each agency during such period; ``(2) a brief description of each assignment included under paragraph (1), including-- ``(A) the name of the assigned individual, as well as the private sector organization and the agency (including the specific bureau or other agency component) to or from which such individual was assigned; ``(B) the respective positions to and from which the individual was assigned, including the duties and responsibilities and the pay grade or level associated with each; and ``(C) the duration and objectives of the individual's assignment; and ``(3) such other information as the Office considers appropriate. ``(c) Publication.--A copy of each report submitted under subsection (a)-- ``(1) shall be published in the Federal Register; and ``(2) shall be made publicly available on the Internet. ``(d) Agency Cooperation.--On request of the Office, agencies shall furnish such information and reports as the Office may require in order to carry out this section. ``Sec. 3806. Regulations ``The Director of the Office of Personnel Management shall prescribe regulations for the administration of this chapter.''. (b) Report.--Not later than 4 years after the date of the enactment of this Act, the General Accounting Office shall prepare and submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate a report on the operation of chapter 38 of title 5, United States Code (as added by this section). Such report shall include-- (1) an evaluation of the effectiveness of the program established by such chapter; and (2) a recommendation as to whether such program should be continued (with or without modification) or allowed to lapse. (c) Clerical Amendment.--The table of chapters at the beginning of part III of title 5, United States Code, is amended by inserting after the item relating to chapter 37 the following: ``38. Acquisition Professional Exchange Program............. 3801''. (d) Coordination With Acquisition Workforce Provisions of Office of Federal Procurement Policy Act.--Section 37 of the Office of Federal Procurement Policy Act (41 U.S.C. 433) is amended by adding at the end the following new subsection: ``(i) Authority To Detail Employees to Non-Federal Employers.--(1) In carrying out the provisions of this section, the Administrator, by agreement with the Director of the Office of Personnel Management, may provide for a program under which a Federal employee may be detailed to a non-Federal employer. The Administrator, by agreement with the Director of the Office of Personnel Management, shall prescribe regulations for such program, including the conditions for service and duties as the Administrator considers necessary. ``(2) An assignment described in section 3803 of title 5, United States Code, may not be made unless a program under paragraph (1) is established, and the assignment is made in accordance with the requirements of such program.''. (e) Ethics Provisions.-- (1) One-year restriction on certain communications.-- Section 207(c)(2)(A)(v) of title 18, United States Code, is amended by inserting ``or 38'' after ``chapter 37''. (2) Disclosure of confidential information.--Section 1905 of title 18, United States Code, is amended by inserting ``or 38'' after ``chapter 37''. (3) Contract advice.--Section 207(l) of title 18, United States Code, is amended-- (A) in the subsection heading, by striking ``Details.--'' and inserting ``Detailees.--''; and (B) by inserting ``or 38'' after ``chapter 37''. (4) Restriction on disclosure of procurement information.-- Section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423) is amended in the last sentence of subsection (a)(1) by inserting ``or 38'' after ``chapter 37''. (f) Technical and Conforming Amendments.-- (1) Amendments to title 5, united states code.--Title 5, United States Code, is amended-- (A) in section 3111(d), by inserting ``or 38'' after ``chapter 37''; (B) in section 7353(b)(4), by inserting ``or 38'' after ``chapter 37''. (2) Amendment to title 18, united states code.--Section 209(g) of title 18, United States Code, is amended-- (A) in paragraph (1), by inserting ``or 38'' after ``chapter 37''; and (B) by amending paragraph (2) to read as follows: ``(2) For purposes of this subsection, the term `agency'-- ``(A) with respect to assignments under chapter 37 of title 5, means an agency (as defined in section 3701 of title 5) and the Office of the Chief Technology Officer of the District of Columbia; and ``(B) with respect to assignments under chapter 38 of title 5, means an agency (as defined by section 3801 of title 5).''. (3) Eligibility for thrift savings plan.--Section 125(c)(1)(D) of Public Law 100-238 (101 Stat. 1757; 5 U.S.C. 8432 note) is amended by inserting ``or 38'' after ``chapter 37''. SEC. 104. ACQUISITION WORKFORCE RECRUITMENT PROGRAM. (a) Authority To Carry Out Program.--For purposes of sections 3304, 5333, and 5753 of title 5, United States Code, the head of a department or agency of the United States (including the Secretary of Defense) may determine that certain Federal acquisition positions are ``shortage category'' positions in order to recruit and appoint directly to positions of employment in the department or agency highly qualified persons, such as any person who-- (1) holds a bachelor's degree from an accredited institution of higher education; (2) holds, from an accredited law school or an accredited institution of higher education-- (A) a law degree; or (B) a masters or equivalent degree in business administration, public administration, or systems engineering; or (3) has significant experience with commercial acquisition practices, terms, and conditions. (b) Requirements.--The exercise of authority to take a personnel action under this section shall be subject to policies prescribed by the Office of Personnel Management that govern direct recruitment, including policies requiring appointment of a preference eligible who satisfies the qualification requirements. (c) Termination of Authority.--The head of a department or agency may not appoint a person to a position of employment under this section after September 30, 2007. (d) Report.--Not later than March 31, 2007, the Administrator for Federal Procurement Policy shall submit to Congress a report on the implementation of this section. The report shall include-- (1) the Administrator's assessment of the efficacy of the exercise of the authority provided in this section in attracting employees with unusually high qualifications to the acquisition workforce; and (2) any recommendations considered appropriate by the Administrator on whether the authority to carry out the program should be extended. SEC. 105. ARCHITECTURAL AND ENGINEERING ACQUISITION WORKFORCE. The Administrator for Federal Procurement Policy, in consultation with the Secretary of Defense, the Administrator of General Services, and the Director of the Office of Personnel Management, shall develop and implement a plan to ensure that the Federal Government maintains the necessary capability with respect to the acquisition of architectural and engineering services to-- (1) ensure that Federal Government employees have the expertise to determine agency requirements for such services; (2) establish priorities and programs (including acquisition plans); (3) establish professional standards; (4) develop scopes of work; and (5) award and administer contracts for such services. TITLE II--ADAPTATION OF BUSINESS ACQUISITION PRACTICES Subtitle A--Adaptation of Business Management Practices SEC. 201. CHIEF ACQUISITION OFFICERS. (a) Appointment of Chief Acquisition Officers.--(1) Section 16 of the Office of Federal Procurement Policy Act (41 U.S.C. 414) is amended to read as follows: ``SEC. 16. CHIEF ACQUISITION OFFICERS. ``(a) Establishment of Agency Chief Acquisition Officers.--The head of each executive agency (other than the Department of Defense) shall appoint or designate a non-career employee as Chief Acquisition Officer for the agency, who shall-- ``(1) have acquisition management as that official's primary duty; and ``(2) advise and assist the head of the executive agency and other agency officials to ensure that the mission of the executive agency is achieved through the management of the agency's acquisition activities. ``(b) Authority and Functions of Agency Chief Acquisition Officers.--The functions of each Chief Acquisition Officer shall include-- ``(1) monitoring the performance of acquisition activities and acquisition programs of the executive agency, evaluating the performance of those programs on the basis of applicable performance measurements, and advising the head of the executive agency regarding the appropriate business strategy to achieve the mission of the executive agency; ``(2) increasing the use of full and open competition in the acquisition of property and services by the executive agency by establishing policies, procedures, and practices that ensure that the executive agency receives a sufficient number of sealed bids or competitive proposals from responsible sources to fulfill the Government's requirements (including performance and delivery schedules) at the best value considering the nature of the property or service procured; ``(3) making acquisition decisions consistent with all applicable laws and establishing clear lines of authority, accountability, and responsibility for acquisition decisionmaking within the executive agency; ``(4) managing the direction of acquisition policy for the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency; ``(5) developing and maintaining an acquisition career management program in the executive agency to ensure that there is an adequate professional workforce; and ``(6) as part of the strategic planning and performance evaluation process required under section 306 of title 5, United States Code, and sections 1105(a)(28), 1115, 1116, and 9703 of title 31, United States Code-- ``(A) assessing the requirements established for agency personnel regarding knowledge and skill in acquisition resources management and the adequacy of such requirements for facilitating the achievement of the performance goals established for acquisition management; ``(B) in order to rectify any deficiency in meeting such requirements, developing strategies and specific plans for hiring, training, and professional development; and ``(C) reporting to the head of the executive agency on the progress made in improving acquisition management capability.''. (2) The item relating to section 16 in the table of contents in section 1(b) of such Act is amended to read as follows: ``Sec. 16. Chief Acquisition Officers.''. (b) References to Senior Procurement Executive.-- (1) Amendment to the office of federal policy act.-- (A) Subsections (a)(2)(A) and (b) of section 20 of the Office of Federal Procurement Policy Act (41 U.S.C. 418(a)(2)(A), (b)) are amended by striking ``senior procurement executive'' each place it appears and inserting ``Chief Acquisition Officer''. (B) Subsection (c)(2)(A)(ii) of section 29 of the Office of Federal Procurement Policy Act (41 U.S.C. 425(c)(2)(A)(ii)) is amended by striking ``senior procurement executive'' and inserting ``Chief Acquisition Officer''. (C) Subsection (c) of section 37 of the Office of Federal Procurement Policy Act (41 U.S.C. 433(c)) is amended-- (i) by striking ``Senior Procurement Executive'' in the heading and inserting ``Chief Acquisition Officer''; and (ii) by striking ``senior procurement executive'' each place it appears and inserting ``Chief Acquisition Officer''. (2) Amendment to title iii of the federal property and administrative services act of 1949.--Sections 302C(b) and 303(f)(1)(B)(iii) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 252c, 253) are amended by striking ``senior procurement executive'' each place it appears and inserting ``Chief Acquisition Officer''. (3) Amendment to title 10, united states code.--The following sections of title 10, United States Code are amended by striking ``senior procurement executive'' each place it appears and inserting ``Chief Acquisition Officer'': (A) Section 133(c)(1). (B) Subsections (d)(2)(B) and (f)(1) of section 2225. (C) Section 2302c(b). (D) Section 2304(f)(1)(B)(iii). (E) Section 2359a(i). (4) References.--Any reference to a senior procurement executive of a department or agency of the United States in any other provision of law or regulation, document, or record of the United States shall be deemed to be a reference to the Chief Acquisition Officer of the department or agency. (c) Technical Correction.--Section 1115(a) of title 31, United States Code, is amended by striking ``section 1105(a)(29)'' and inserting ``section 1105(a)(28)''. SEC. 202. CHIEF ACQUISITION OFFICERS COUNCIL. (a) Establishment of Council.--The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by inserting after section 16 the following new section: ``SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL. ``(a) Establishment.--There is established in the executive branch a Chief Acquisition Officers Council. ``(b) Membership.--The members of the Council shall be as follows: ``(1) The Deputy Director for Management of the Office of Management and Budget, who shall act as Chairman of the Council. ``(2) The Administrator for Federal Procurement Policy. ``(3) The chief acquisition officer of each executive agency. ``(4) The Under Secretary of Defense for Acquisition, Technology, and Logistics. ``(5) Any other officer or employee of the United States designated by the Chairman. ``(c) Leadership; Support.--(1) The Administrator for Federal Procurement Policy shall lead the activities of the Council on behalf of the Deputy Director for Management. ``(2)(A) The Vice Chairman of the Council shall be selected by the Council from among its members. ``(B) The Vice Chairman shall serve a 1-year term, and may serve multiple terms. ``(3) The Administrator of General Services shall provide administrative and other support for the Council. ``(d) Principal Forum.--The Council is designated the principal interagency forum for monitoring and improving the Federal acquisition system. ``(e) Functions.--The Council shall perform functions that include the following: ``(1) Develop recommendations for the Director of the Office of Management and Budget on Federal acquisition policies and requirements. ``(2) Share experiences, ideas, best practices, and innovative approaches related to Federal acquisition. ``(3) Assist the Administrator in the identification, development, and coordination of multiagency projects and other innovative initiatives to improve Federal acquisition. ``(4) Promote effective business practices that ensure the timely delivery of best value products to the Federal Government and achieve appropriate public policy objectives. ``(5) Further integrity, fairness, competition, openness, and efficiency in the Federal acquisition system. ``(6) Work with the Office of Personnel Management to assess and address the hiring, training, and professional development needs of the Federal Government related to acquisition. ``(7) Work with the Administrator and the Federal Acquisition Regulatory Council to promote the business practices referred to in paragraph (4) and other results of the functions carried out under this subsection.''. (b) Clerical Amendment.--The table of contents in section 1(b) of such Act is amended by inserting after the item relating to section 16 the following new item: ``Sec. 16A. Chief Acquisition Officers Council.''. SEC. 203. STATUTORY AND REGULATORY REVIEW. (a) Establishment.--Not later than 90 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall establish an advisory panel to review laws and regulations regarding the use of commercial practices, performance-based contracting, the performance of acquisition functions across agency lines of responsibility, and the use of Governmentwide contracts. (b) Membership.--The panel shall be composed of at least nine individuals who are recognized experts in acquisition law and Government acquisition policy. In making appointments to the panel, the Administrator shall-- (1) consult with the Secretary of Defense, the Administrator of General Services, the Committees on Armed Services and Government Reform of the House of Representatives, and the Committees on Armed Services and Governmental Affairs of the Senate, and (2) ensure that the members of the panel reflect the diverse experiences in the public and private sectors. (c) Duties.--The panel shall-- (1) review all Federal acquisition laws and regulations with a view toward ensuring effective and appropriate use of commercial practices and performance-based contracting; and (2) make any recommendations for the repeal or amendment of such laws or regulations that are considered necessary as a result of such review-- (A) to eliminate any provisions in such laws or regulations that are unnecessary for the effective, efficient, and fair award and administration of contracts for the acquisition by the Federal Government of goods and services; (B) to ensure the continuing financial and ethical integrity of acquisitions by the Federal Government; and (C) to protect the best interests of the Federal Government. (d) Report.--Not later than one year after the establishment of the panel, the panel shall submit to the Administrator and to the Committees on Armed Services and Government Reform of the House of Representatives and the Committees on Armed Services and Governmental Affairs of the Senate a report containing a detailed statement of the findings, conclusions, and recommendations of the panel. Subtitle B--Other Acquisition Improvements SEC. 211. EXTENSION OF AUTHORITY TO CARRY OUT FRANCHISE FUND PROGRAMS. Section 403(f) of the Federal Financial Management Act of 1994 (Public Law 103-356; 31 U.S.C. 501 note) is amended by striking ``October 1, 2003'' and inserting ``October 1, 2006''. SEC. 212. AGENCY ACQUISITION PROTESTS. (a) Defense Contracts.--(1) Chapter 137 of title 10, United States Code, is amended by inserting after section 2305a the following new section: ``Sec. 2305b. Protests ``(a) In General.--An interested party may protest an acquisition of supplies or services by an agency based on an alleged violation of an acquisition law or regulation, and a decision regarding such alleged violation shall be made by the agency in accordance with this section. ``(b) Restriction on Contract Award Pending Decision.--(1) Except as provided in paragraph (2), a contract may not be awarded by an agency after a protest concerning the acquisition has been submitted under this section and while the protest is pending. ``(2) The head of the acquisition activity responsible for the award of the contract may authorize the award of a contract, notwithstanding pending protest under this section, upon making a written finding that urgent and compelling circumstances do not allow for waiting for a decision on the protest. ``(c) Restriction on Contract Performance Pending Decision.--(1) Except as provided in paragraph (2), performance of a contract may not be authorized (and performance of the contract shall cease if performance has already begun) in any case in which a protest of the contract award is submitted under this section before the later of-- ``(A) the date that is 10 days after the date of contract award; or ``(B) the date that is five days after an agency debriefing date offered to an unsuccessful offeror for any debriefing that is requested and, when requested, is required, under section 2305(b)(5) of this title. ``(2) The head of the acquisition activity responsible for the award of a contract may authorize performance of the contract notwithstanding a pending protest under this section upon making a written finding that urgent and compelling circumstances do not allow for waiting for a decision on the protest. ``(d) Deadline for Decision.--The head of an agency shall issue a decision on a protest under this section not later than the date that is 20 working days after the date on which the protest is submitted to such head of an agency. ``(e) Construction.--Nothing in this section shall affect the right of an interested party to file a protest with the Comptroller General under subchapter V of chapter 35 of title 31 or in the United States Court of Federal Claims. ``(f) Definitions.--In this section, the terms `protest' and `interested party' have the meanings given such terms in section 3551 of title 31.''. (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2305a the following new item: ``2305b. Protests.''. (b) Other Agencies.--Title III of the Federal Property and Administrative Services Act of 1949 is amended by inserting after section 303M (41 U.S.C. 253m) the following new section: ``SEC. 303N. PROTESTS. ``(a) In General.--An interested party may protest an acquisition of supplies or services by an executive agency based on an alleged violation of an acquisition law or regulation, and a decision regarding such alleged violation shall be made by the agency in accordance with this section. ``(b) Restriction on Contract Award Pending Decision.--(1) Except as provided in paragraph (2), a contract may not be awarded by an agency after a protest concerning the acquisition has been submitted under this section and while the protest is pending. ``(2) The head of the acquisition activity responsible for the award of a contract may authorize the award of the contract, notwithstanding a pending protest under this section, upon making a written finding that urgent and compelling circumstances do not allow for waiting for a decision on the protest. ``(c) Restriction on Contract Performance Pending Decision.--(1) Except as provided in paragraph (2), performance of a contract may not be authorized (and performance of the contract shall cease if performance has already begun) in any case in which a protest of the contract award is submitted under this section before the later of-- ``(A) the date that is 10 days after the date of contract award; or ``(B) the date that is five days after an agency debriefing date offered to an unsuccessful offeror for any debriefing that is requested and, when requested, is required, under section 303B(e) of this title. ``(2) The head of the acquisition activity responsible for the award of a contract may authorize performance of the contract notwithstanding a pending protest under this section upon making a written finding that urgent and compelling circumstances do not allow for waiting for a decision on the protest. ``(d) Deadline for Decision.--The head of an executive agency shall issue a decision on a protest under this section not later than the date that is 20 working days after the date on which the protest is submitted to the executive agency. ``(e) Construction.--Nothing in this section shall affect the right of an interested party to file a protest with the Comptroller General under subchapter V of chapter 35 of title 31, United States Code, or in the United States Court of Federal Claims. ``(f) Definitions.--In this section, the terms `protest' and `interested party' have the meanings given such terms in section 3551 of title 31, United States Code.''. (c) Conforming Amendment.--Section 3553(d)(4) of title 31, United States Code, is amended-- (1) in subparagraph (A), by striking ``or'' at the end; (2) by striking the period at the end of subparagraph (B) and inserting ``; or''; and (3) by adding at the end the following new subparagraph: ``(C) in the case of a protest of the same matter regarding such contract that is submitted under section 2305b of title 10 or section 303N of the Federal Property and Administrative Services Act of 1949, the date that is 5 days after the date on which a decision on that protest is issued.''. SEC. 213. IMPROVEMENTS IN CONTRACTING FOR ARCHITECTURAL AND ENGINEERING SERVICES. (a) Clarification of Definition of Surveying and Mapping.--(1) Section 1102 of title 40, United States Code, is amended by adding at the end the following new paragraph: ``(4) Surveying and mapping.--The term `surveying and mapping' means services performed by professionals such as surveyors, photogrammetrists, hydrographers, geodesists, or cartographers in the collection, storage, retrieval, or dissemination of graphical or digital data to depict natural or manmade physical features, phenomena, or boundaries of the earth and any information related to such data, including any such data that comprises a survey, map, chart, geographic information system, remotely sensed image or data, or an aerial photograph.''. (2) The Federal Acquisition Regulation shall be revised to include the definition added by subsection (a) of this section. (b) Title 10.--Section 2855(b) of title 10, United States Code, is amended-- (1) in paragraph (2), by striking ``$85,000'' and inserting ``$300,000''; and (2) by adding at the end the following new paragraph: ``(4) The selection and competition requirements described in subsection (a) shall apply to any contract for architectural and engineering services (including surveying and mapping services) that is entered into by the head of an agency (as such term is defined in section 2302 of this title).''. (c) Architectural and Engineering Services.--Architectural and engineering services (as defined in section 1102 of title 40, United States Code) shall not be offered under multiple-award schedule contracts entered into by the Administrator of General Services or under Governmentwide task and delivery-order contracts entered into under sections 2304a and 2304b of title 10, United States Code, or sections 303H and 303I of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h and 253i) unless such services-- (1) are performed under the direct supervision of a professional engineer licensed in a State; and (2) are awarded in accordance with the selection procedures set forth in chapter 11 of title 40, United States Code. SEC. 214. AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRACTORS. (a) Amendment to the Federal Acquisition Regulation.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulatory Council shall amend the Federal Acquisition Regulation issued in accordance with sections 6 and 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 405 and 421) to permit telecommuting by employees of Federal Government contractors in the performance of contracts entered into with executive agencies. (b) Content of Amendment.--The regulation issued pursuant to subsection (a) shall, at a minimum, provide that solicitations for the acquisition of property or services may not set forth any requirement or evaluation criteria that would-- (1) render an offeror ineligible to enter into a contract on the basis of the inclusion of a plan of the offeror to permit the offeror's employees to telecommute; or (2) reduce the scoring of an offer on the basis of the inclusion in the offer of a plan of the offeror to permit the offeror's employees to telecommute, unless the contracting officer concerned first-- (A) determines that the requirements of the agency, including the security requirements of the agency, cannot be met if the telecommuting is permitted; and (B) documents in writing the basis for that determination. (c) GAO Report.--Not later than one year after the date on which the regulation required by subsection (a) is published in the Federal Register, the Comptroller General shall submit to Congress-- (1) an evaluation of-- (A) the conformance of the regulations with law; and (B) the compliance by executive agencies with the regulations; and (2) any recommendations that the Comptroller General considers appropriate. (d) Definition.--In this section, the term ``executive agency'' has the meaning given that term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403). SEC. 215. PROCEDURAL REQUIREMENTS FOR CIVILIAN AGENCIES RELATING TO PRODUCTS OF FEDERAL PRISON INDUSTRIES. 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. 318. PRODUCTS OF FEDERAL PRISON INDUSTRIES: PROCEDURAL REQUIREMENTS. ``(a) Market Research.--Before purchasing a product listed in the latest edition of the Federal Prison Industries catalog under section 4124(d) of title 18, United States Code, the head of an executive agency shall conduct market research to determine whether the Federal Prison Industries product is comparable to products available from the private sector that best meet the executive agency's needs in terms of price, quality, and time of delivery. ``(b) Competition Requirement.--If the head of the executive agency determines that a Federal Prison Industries product is not comparable in price, quality, or time of delivery to products available from the private sector that best meet the executive agency's needs in terms of price, quality, and time of delivery, the agency head shall use competitive procedures for the procurement of the product or shall make an individual purchase under a multiple award contract. In conducting such a competition or making such a purchase, the agency head shall consider a timely offer from Federal Prison Industries. ``(c) Implementation by Head of Executive Agency.--The head of an executive agency shall ensure that-- ``(1) the executive agency does not purchase a Federal Prison Industries product or service unless a contracting officer of the agency determines that the product or service is comparable to products or services available from the private sector that best meet the agency's needs in terms of price, quality, and time of delivery; and ``(2) Federal Prison Industries performs its contractual obligations to the same extent as any other contractor for the executive agency. ``(d) Market Research Determination Not Subject to Review.--A determination by a contracting officer regarding whether a product or service offered by Federal Prison Industries is comparable to products or services available from the private sector that best meet an executive agency's needs in terms of price, quality, and time of delivery shall not be subject to review pursuant to section 4124(b) of title 18. ``(e) Performance as a Subcontractor.--(1) A contractor or potential contractor of an executive agency may not be required to use Federal Prison Industries as a subcontractor or supplier of products or provider of services for the performance of a contract of the executive agency by any means, including means such as-- ``(A) a contract solicitation provision requiring a contractor to offer to make use of products or services of Federal Prison Industries in the performance of the contract; ``(B) a contract specification requiring the contractor to use specific products or services (or classes of products or services) offered by Federal Prison Industries in the performance of the contract; or ``(C) any contract modification directing the use of products or services of Federal Prison Industries in the performance of the contract. ``(2) In this subsection, the term `contractor', with respect to a contract, includes a subcontractor at any tier under the contract. ``(f) Protection of Classified and Sensitive Information.--The head of an executive agency may not enter into any contract with Federal Prison Industries under which an inmate worker would have access to-- ``(1) any data that is classified; ``(2) any geographic data regarding the location of-- ``(A) surface and subsurface infrastructure providing communications or water or electrical power distribution; ``(B) pipelines for the distribution of natural gas, bulk petroleum products, or other commodities; or ``(C) other utilities; or ``(3) any personal or financial information about any individual private citizen, including information relating to such person's real property however described, without the prior consent of the individual. ``(g) Definitions.--In this section: ``(1) The term `competitive procedures' has the meaning given such term in section 4(5) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(5)). ``(2) The term `market research' means obtaining specific information about the price, quality, and time of delivery of products available in the private sector through a variety of means, which may include-- ``(A) contacting knowledgeable individuals in government and industry; ``(B) interactive communication among industry, acquisition personnel, and customers; and ``(C) interchange meetings or pre-solicitation conferences with potential offerors.''. TITLE III--CONTRACT INCENTIVES SEC. 301. SHARE-IN-SAVINGS INITIATIVES. (a) Defense Contracts.--Section 2332 of title 10, United States Code, is amended to read as follows: ``Sec. 2332. Share-in-savings contracts ``(a) Authority To Enter Into Share-in-Savings Contracts.--(1) The head of an agency may enter into a share-in-savings contract in which the Government awards a contract to improve mission-related or administrative processes or to accelerate the achievement of its mission and share with the contractor in savings achieved through contract performance. ``(2)(A) Except as provided in subparagraph (B), a share-in-savings contract shall be awarded for a period of not more than five years. ``(B) A share-in-savings contract may be awarded for a period greater than five years, but not more than 10 years, if the head of the agency determines in writing prior to award of the contract that-- ``(i) the level of risk to be assumed and the investment to be undertaken by the contractor is likely to inhibit the government from obtaining the needed performance competitively at a fair and reasonable price if the contract is limited in duration to a period of five years or less; and ``(ii) the performance to be acquired is likely to continue for a period of time sufficient to generate reasonable benefit for the government. ``(3) Contracts awarded pursuant to the authority of this section shall, to the maximum extent practicable, be performance-based contracts that identify objective outcomes and contain performance standards that will be used to measure achievement and milestones that must be met before payment is made. ``(4) Contracts awarded pursuant to the authority of this section shall include a provision containing a quantifiable baseline that is to be the basis upon which a savings share ratio is established that governs the amount of payment a contractor is to receive under the contract. Before commencement of performance of such a contract, the chief acquisition officer of the agency shall determine in writing that the terms of the provision are quantifiable and will likely yield value to the Government. ``(5)(A) The head of the agency may retain savings realized through the use of a share-in-savings contract under this section that are in excess of the total amount of savings paid to the contractor under the contract. Except as provided in subparagraph (B), savings shall be credited to the appropriation or fund against which charges were made to carry out the contract. ``(B) Amounts retained by the agency under this subsection shall-- ``(i) without further appropriation, remain available until expended; and ``(ii) be applied first to fund any contingent liabilities associated with share-in-savings procurements that are not fully funded. ``(b) Cancellation and Termination.--(1) If funds are not made available for the continuation of a share-in-savings contract entered into under this section in a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid out of-- ``(A) appropriations available for the performance of the contract; ``(B) appropriations available for acquisition of the type of property or services procured under the contract, and not otherwise obligated; or ``(C) funds subsequently appropriated for payments of costs of cancellation or termination, subject to the limitations in paragraph (3). ``(2) The amount payable in the event of cancellation or termination of a share-in-savings contract shall be negotiated with the contractor at the time the contract is entered into. ``(3) The head of an agency may enter into share-in-savings contracts under this section in any given fiscal year even if funds are not made specifically available for the full costs of cancellation or termination of the contract if funds are available and sufficient to make payments with respect to the first fiscal year of the contract and the following conditions are met regarding the funding of cancellation and termination liability: ``(A) The amount of unfunded contingent liability for the contract does not exceed the lesser of-- ``(i) 50 percent of the estimated costs of a cancellation or termination; or ``(ii) $10,000,000. ``(B) Unfunded contingent liability in excess of $5,000,000 has been approved by the Director of the Office of Management and Budget or the Director's designee. ``(c) Definitions.--In this section: ``(1) The term `contractor' means a private entity that enters into a contract with an agency. ``(2) The term `savings' means-- ``(A) monetary savings to an agency; or ``(B) savings in time or other benefits realized by the agency, including enhanced revenues. ``(3) The term `share-in-savings contract' means a contract under which-- ``(A) a contractor provides solutions for-- ``(i) improving the agency's mission- related or administrative processes; or ``(ii) accelerating the achievement of agency missions; and ``(B) the head of the agency pays the contractor an amount equal to a portion of the savings derived by the agency from-- ``(i) any improvements in mission-related or administrative processes that result from implementation of the solution; or ``(ii) acceleration of achievement of agency missions.''. (b) Other Contracts.--Section 317 of the Federal Property and Administrative Services Act of 1949 is amended to read as follows: ``SEC. 317. SHARE-IN-SAVINGS CONTRACTS. ``(a) Authority To Enter Into Share-in-Savings Contracts.--(1) The head of an executive agency may enter into a share-in-savings contract in which the Government awards a contract to improve mission-related or administrative processes or to accelerate the achievement of its mission and share with the contractor in savings achieved through contract performance. ``(2)(A) Except as provided in subparagraph (B), a share-in-savings contract shall be awarded for a period of not more than five years. ``(B) A share-in-savings contract may be awarded for a period greater than five years, but not more than 10 years, if the head of the agency determines in writing prior to award of the contract that-- ``(i) the level of risk to be assumed and the investment to be undertaken by the contractor is likely to inhibit the government from obtaining the needed performance competitively at a fair and reasonable price if the contract is limited in duration to a period of five years or less; and ``(ii) the performance to be acquired is likely to continue for a period of time sufficient to generate reasonable benefit for the government. ``(3) Contracts awarded pursuant to the authority of this section shall, to the maximum extent practicable, be performance-based contracts that identify objective outcomes and contain performance standards that will be used to measure achievement and milestones that must be met before payment is made. ``(4) Contracts awarded pursuant to the authority of this section shall include a provision containing a quantifiable baseline that is to be the basis upon which a savings share ratio is established that governs the amount of payment a contractor is to receive under the contract. Before commencement of performance of such a contract, the chief acquisition officer of the agency shall determine in writing that the terms of the provision are quantifiable and will likely yield value to the Government. ``(5)(A) The head of the agency may retain savings realized through the use of a share-in-savings contract under this section that are in excess of the total amount of savings paid to the contractor under the contract. Except as provided in subparagraph (B), savings shall be credited to the appropriation or fund against which charges were made to carry out the contract. ``(B) Amounts retained by the agency under this subsection shall-- ``(i) without further appropriation, remain available until expended; and ``(ii) be applied first to fund any contingent liabilities associated with share-in-savings procurements that are not fully funded. ``(b) Cancellation and Termination.--(1) If funds are not made available for the continuation of a share-in-savings contract entered into under this section in a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid out of-- ``(A) appropriations available for the performance of the contract; ``(B) appropriations available for acquisition of the type of property or services procured under the contract, and not otherwise obligated; or ``(C) funds subsequently appropriated for payments of costs of cancellation or termination, subject to the limitations in paragraph (3). ``(2) The amount payable in the event of cancellation or termination of a share-in-savings contract shall be negotiated with the contractor at the time the contract is entered into. ``(3) The head of an executive agency may enter into share-in- savings contracts under this section in any given fiscal year even if funds are not made specifically available for the full costs of cancellation or termination of the contract if funds are available and sufficient to make payments with respect to the first fiscal year of the contract and the following conditions are met regarding the funding of cancellation and termination liability: ``(A) The amount of unfunded contingent liability for the contract does not exceed the lesser of-- ``(i) 50 percent of the estimated costs of a cancellation or termination; or ``(ii) $10,000,000. ``(B) Unfunded contingent liability in excess of $5,000,000 has been approved by the Director of the Office of Management and Budget or the Director's designee. ``(c) Definitions.--In this section: ``(1) The term `contractor' means a private entity that enters into a contract with an agency. ``(2) The term `savings' means-- ``(A) monetary savings to an agency; or ``(B) savings in time or other benefits realized by the agency, including enhanced revenues. ``(3) The term `share-in-savings contract' means a contract under which-- ``(A) a contractor provides solutions for-- ``(i) improving the agency's mission- related or administrative processes; or ``(ii) accelerating the achievement of agency missions; and ``(B) the head of the agency pays the contractor an amount equal to a portion of the savings derived by the agency from-- ``(i) any improvements in mission-related or administrative processes that result from implementation of the solution; or ``(ii) acceleration of achievement of agency missions.''. (c) Development of Incentives.--The Director of the Office of Management and Budget shall-- (1) identify potential opportunities for the use of share- in-savings contracts; (2) provide guidance to executive agencies for determining mutually beneficial savings share ratios and baselines from which savings may be measured; and (3) in consultation with the Committee on Governmental Affairs of the Senate, the Committee on Government Reform of the House of Representatives, and executive agencies, develop techniques to permit an executive agency to retain a portion of the savings (after payment of the contractor's share of the savings) derived from share-in-savings contracts as funds are appropriated to the agency in future fiscal years. (d) Regulations.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to implement the provisions enacted by this section. Such revisions shall-- (1) provide for the use of competitive procedures in the selection and award of share-in-savings contracts to-- (A) ensure the contractor's share of savings reflects the risk involved and market conditions; and (B) otherwise yield best value to the government; and (2) allow appropriate regulatory flexibility to facilitate the use of share-in-savings contracts by executive agencies, including the use of innovative provisions for technology refreshment and nonstandard Federal Acquisition Regulation contract clauses. (e) OMB Report to Congress.--In consultation with executive agencies, the Director of the Office of Management and Budget shall, not later than 2 years after the completion of the revisions to the Federal Acquisition Regulation under subsection (d), submit to Congress a report containing-- (1) a description of the number of share-in-savings contracts entered into by each executive agency under by this section and the amendments made by this section, and, for each contract identified-- (A) the performance acquired; (B) the total amount of payments made to the contractor; and (C) the total amount of savings or other measurable benefits realized; (2) a description of the ability of agencies to determine the baseline costs of a project against which savings can be measured; and (3) any recommendations, as the Director deems appropriate, regarding additional changes in law that may be necessary to ensure effective use of share-in-savings contracts by executive agencies. (f) Definitions.--In this section, the terms ``contractor'', ``savings'', and ``share-in-savings contract'' have the meanings given those terms in section 2332 of title 10, United States Code, and section 317 of the Federal Property and Administrative Services Act of 1949 (as amended by subsections (a) and (b)). (g) Repeal of Superseded Provisions.--Subsections (c), (d), (e), (f), (g), and (i) of section 210 of the E-Government Act of 2002 (Public Law 107-317; 116 Stat. 2936) are repealed. SEC. 302. INCENTIVES FOR CONTRACT EFFICIENCY. (a) Incentives for Contract Efficiency.--The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by adding at the end the following new section: ``SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF SERVICES CONTRACTS. ``(a) Options for Services Contracts.--An option included in a contract for services to extend the contract by one or more periods may provide that it be exercised on the basis of exceptional performance by the contractor. A contract that contains such an option provision shall include performance standards for measuring performance under the contract, and to the maximum extent practicable be performance-based. Such option provision shall only be exercised in accordance with applicable provisions of law or regulation that set forth restrictions on the duration of the contract containing the option. ``(b) Definition of Performance-Based.--In this section, the term `performance-based', with respect to a contract, task order, or contracting, means that the contract, task order, or contracting, respectively, includes the use of performance work statements that set forth contract requirements in clear, specific, and objective terms with measurable outcomes.''. (b) Clerical and Technical Amendments.--(1) The table of contents in section 1(b) of such Act is amended by striking the last item and inserting the following: ``Sec. 40. Protection of constitutional rights of contractors. ``Sec. 41. Incentives for efficient performance of services contracts.''. (2) The section before section 41 of such Act (as added by subsection (a)) is redesignated as section 40. TITLE IV--ACQUISITIONS OF COMMERCIAL ITEMS SEC. 401. ADDITIONAL INCENTIVE FOR USE OF PERFORMANCE-BASED CONTRACTING FOR SERVICES. (a) Other Contracts.--Section 41 of the Office of Federal Procurement Policy Act, as added by section 302, is amended-- (1) by redesignating subsection (b) as subsection (c); and (2) by inserting after subsection (a) the following new subsection: ``(b) Incentive for Use of Performance-Based Services Contracts.-- (1) A performance-based contract for the procurement of services entered into by an executive agency or a performance-based task order for services issued by an executive agency may be treated as a contract for the procurement of commercial items if-- ``(A) the contract or task order sets forth specifically each task to be performed and, for each task-- ``(i) defines the task in measurable, mission- related terms; and ``(ii) identifies the specific end products or output to be achieved; and ``(B) the source of the services provides similar services to the general public under terms and conditions similar to those offered to the Federal Government. ``(2) The regulations implementing this subsection shall require agencies to collect and maintain reliable data sufficient to identify the contracts or task orders treated as contracts for commercial items using the authority of this subsection. The data may be collected using the Federal Procurement Data System or other reporting mechanism. ``(3) Not later than two years after the date of the enactment of this subsection, the Director of the Office of Management and Budget shall prepare and submit to the Committees on Governmental Affairs and on Armed Services of the Senate and the Committees on Government Reform and on Armed Services of the House of Representatives a report on the contracts or task orders treated as contracts for commercial items using the authority of this subsection. The report shall include data on the use of such authority both government-wide and for each department and agency. ``(4) The authority under this subsection shall expire 10 years after the date of the enactment of this subsection.''. (b) Center of Excellence in Service Contracting.--Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall establish a center of excellence in contracting for services. The center of excellence shall assist the acquisition community by identifying, and serving as a clearinghouse for, best practices in contracting for services in the public and private sectors. (c) Repeal of Superseded Provision.--Subsection (b) of section 821 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A- 218) is repealed. SEC. 402. AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT TYPES. Section 8002(d) of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3387; 41 U.S.C. 264 note) is amended-- (1) in paragraph (1), by striking ``and''; (2) by striking the period at the end of paragraph (2) and inserting ``; and''; and (3) by adding at the end the following new paragraph: ``(3) authority for use of a time and materials contract or a labor-hour contract for the procurement of commercial services that are commonly sold to the general public through such contracts.'' SEC. 403. CLARIFICATION OF COMMERCIAL SERVICES DEFINITION. Subparagraph (F) of section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)(F)) is amended-- (1) by striking ``catalog or''; and (2) by inserting ``or specific outcomes to be achieved'' after ``performed''. SEC. 404. DESIGNATION OF COMMERCIAL BUSINESS ENTITIES. (a) In General.--Section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403), as amended by section 101, is further amended-- (1) by adding at the end of paragraph (12) the following new subparagraph: ``(I) Items or services produced or provided by a commercial entity.''; and (2) by adding at the end the following new paragraph: ``(17) The term `commercial entity' means any enterprise whose primary customers are other than the Federal Government. In order to qualify as a commercial entity, at least 90 percent (in dollars) of the sales of the enterprise over the past three business years must have been made to private sector entities.''. (b) Collection of Data.--Regulations implementing the amendments made by subsection (a) shall require agencies to collect and maintain reliable data sufficient to identify the contracts entered into or task orders awarded for items or services produced or provided by a commercial entity. The data may be collected using the Federal Procurement Data System or other reporting mechanism. (c) OMB Report.--Not later than two years after the date of the enactment of this subsection, the Director of the Office of Management and Budget shall prepare and submit to the Committees on Governmental Affairs and on Armed Services of the Senate and the Committees on Government Reform and on Armed Services of the House of Representatives a report on the contracts entered into or task orders awarded for items or services produced or provided by a commercial entity. The report shall include data on the use of such authority both government-wide and for each department and agency. (d) Comptroller General Review.--The Comptroller General shall review the implementation of the amendments made by subsection (a) to evaluate the effectiveness of such implementation in increasing the availability of items and services to the Federal Government at fair and reasonable prices. TITLE V--OTHER MATTERS SEC. 501. AUTHORITY TO ENTER INTO CERTAIN PROCUREMENT-RELATED TRANSACTIONS AND TO CARRY OUT CERTAIN PROTOTYPE PROJECTS. Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) as amended by section 215, is further amended by adding at the end the following new section: ``SEC. 319. AUTHORITY TO ENTER INTO CERTAIN TRANSACTIONS FOR DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK. ``(a) Authority.-- ``(1) In general.--The head of an executive agency who engages in basic research, applied research, advanced research, and development projects that-- ``(A) are necessary to the responsibilities of such official's executive agency in the field of research and development, and ``(B) have the potential to facilitate defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack, may exercise the same authority (subject to the same restrictions and conditions) with respect to such research and projects as the Secretary of Defense may exercise under section 2371 of title 10, United States Code, except for subsections (b) and (f) of such section 2371. ``(2) Prototype projects.--The head of an executive agency may, under the authority of paragraph (1), carry out prototype projects that meet the requirements of subparagraphs (A) and (B) of paragraph (1) in accordance with the requirements and conditions provided for carrying out prototype projects under section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note). In applying the requirements and conditions of that section 845-- ``(A) subsection (c) of that section shall apply with respect to prototype projects carried out under this paragraph; and ``(B) the Director of the Office of Management and Budget shall perform the functions of the Secretary of Defense under subsection (d) of that section. ``(3) Applicability to selected executive agencies.-- ``(A) OMB authorization required.--The head of an executive agency may exercise authority under this subsection only if authorized by the Director of the Office of Management and Budget to do so. ``(B) Relationship to authority of department of homeland security.--The authority under this subsection shall not apply to the Secretary of Homeland Security while section 831 of the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2224) is in effect. ``(b) Annual Report.--The annual report of the head of an executive agency that is required under subsection (h) of section 2371 of title 10, United States Code, as applied to the head of the executive agency by subsection (a), shall be submitted to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives. ``(c) Regulations.--The Director of the Office of Management and Budget shall prescribe regulations to carry out this section.''. SEC. 502. AMENDMENTS RELATING TO FEDERAL EMERGENCY PROCUREMENT FLEXIBILITY. (a) Repeal of Sunset for Authorities Applicable to Procurements for Defense Against or Recovery From Terrorism or Nuclear, Biological, Chemical, or Radiological Attack.--Section 852 of the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2235) is amended by striking ``, but only if a solicitation of offers for the procurement is issued during the 1-year period beginning on the date of the enactment of this Act''. (b) Applicability of Increased Simplified Acquisition Threshold.-- (1) The matter preceding paragraph (1) of section 853(a) of the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2235) is amended to read as follows: ``(a) Threshold Amounts.--For a procurement referred to in section 852, the simplified acquisition threshold referred to in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)) is deemed to be--''. (2) Subsections (b) and (c) of section 853 of such Act are repealed. (3) The heading of section 853 of such Act is amended to read as follows: ``SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESHOLD FOR CERTAIN PROCUREMENTS.''. (4) The table of contents in section 1(b) of such Act is amended by striking the item relating to section 853 and inserting the following: ``Sec. 853. Increased simplified acquisition threshold for certain procurements.''. (5) Section 18(c)(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(c)(1)) is amended-- (A) by striking ``or'' at the end of subparagraph (G); (B) by striking the period at the end of subparagraph (H) and inserting ``; or''; and (C) by adding at the end the following: ``(I) the procurement is by the head of an executive agency pursuant to the special procedures provided in section 853 of the Homeland Security Act of 2002 (Public Law 107-296).''. (c) Applicability of Certain Commercial Items Authorities.--(1) Subsection (a) of section 855 of the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2236) is amended to read as follows: ``(a) Authority.--With respect to a procurement referred to in section 852, the head of an executive agency may deem any item or service to be a commercial item for the purpose of Federal procurement laws.''. (2) Subsection (b)(1) of section 855 of such Act is amended by striking ``to which any of the provisions of law referred to in subsection (a) are applied''. (d) Extension of Deadline for Review and Report.--Section 857(a) of the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2237) is amended by striking ``2004'' and inserting ``2006''. SEC. 503. AUTHORITY TO MAKE INFLATION ADJUSTMENTS TO SIMPLIFIED ACQUISITION THRESHOLD. Section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)) is amended by inserting before the period at the end the following: ``, except that such amount may be adjusted by the Administrator every five years to the amount equal to $100,000 in constant fiscal year 2003 dollars (rounded to the nearest $10,000)''. SEC. 504. TECHNICAL CORRECTIONS RELATED TO DUPLICATIVE AMENDMENTS. (a) Repeal of Superseded Subchapter and Related Conforming Amendments.--(1) Subchapter II of chapter 35 of title 44, United States Code, is repealed. (2) Subchapter III of such chapter is redesignated as subchapter II. (3) Section 3549 of title 44, United States Code, is amended by striking the sentence beginning with ``While this subchapter''. (4) The table of sections at the beginning of chapter 35 of title 44, United States Code, is amended-- (A) by striking the items relating to sections 3531 through 3538; and (B) by striking the heading ``SUBCHAPTER III--INFORMATION SECURITY''. (5) Section 2224a of title 10, United States Code, is repealed, and the table of sections at the beginning of chapter 131 of such title is amended by striking the item relating to such section. (b) Conforming Amendments Related to Repeals of Share-in-Savings and Solutions-Based Contracting Pilot Programs.--(1) Chapter 115 of title 40, United States Code, is repealed. (2) The table of chapters at the beginning of subtitle III of such title is amended by striking the item relating to chapter 115. (c) Amendments Made by E-Government Act Made Applicable.--The following provisions of law shall read as if the amendments made by title X of the Homeland Security Act of 2002 (Public Law 107-296) to such provisions did not take effect: (1) Section 2224 of title 10, United States Code. (2) Sections 20 and 21 of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3 and 278g-4). (3) Sections 11331 and 11332 of title 40, United States Code. (4) Subtitle G of title X of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106- 398; 44 U.S.C. 3531 note). (5) Sections 3504(g), 3505, and 3506(g) of title 44, United States Code. (d) Correction of Cross Reference.--Section 2224(c) of title 10, United States Code, as amended by section 301(c)(1)(B)(iii) of the E- Government Act of 2002 (Public Law 107-347; 116 Stat. 2955), is amended by striking ``subchapter III'' and inserting ``subchapter II''. SEC. 505. EXEMPTION FROM LIMITATIONS ON PROCUREMENT OF FOREIGN INFORMATION TECHNOLOGY THAT IS A COMMERCIAL ITEM. (a) Exemption.--Notwithstanding any other provision of law, in order to promote Government access to commercial information technology, the restriction on purchasing nondomestic articles, materials, and supplies set forth in the Buy American Act (41 U.S.C. 10a et seq.), and the prohibition on acquiring foreign products under section 302(a)(1) of the Trade Agreements Act of 1979 (Public Law 96- 39; 19 U.S.C. 2512(a)(1)), shall not apply to the acquisition by the Federal Government of information technology (as defined in section 11101 of title 40, United States Code, that is a commercial item (as defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)). (b) Definition.--Section 11101(6) of title 40, United States Code, is amended-- (1) in subparagraph (A), by inserting after ``storage,'' the following: ``analysis, evaluation,''; and (2) in subparagraph (B), by striking ``ancillary equipment,'' and inserting ``ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer,''. SEC. 506. PROHIBITION ON USE OF QUOTAS. (a) In General.--After the date of enactment of this Act, the Office of Management and Budget may not establish, apply, or enforce any numerical goal, target, or quota for subjecting the employees of a department or agency of the Government to public-private competitions or converting such employees or the work performed by such employees to contractor performance under Office of Management and Budget Circular A-76 or any other administrative regulation, directive, or policy unless the goal, target, or quota is based on considered research and sound analysis of past activities and is consistent with the stated mission of the department or agency. (b) Limitations.--Subsection (a) shall not-- (1) otherwise affect the implementation or enforcement of the Government Performance and Results Act of 1993 (107 Stat. 285); or (2) prevent any agency of the Executive branch from subjecting work performed by Federal employees or private contractors to public-private competition or conversions. SEC. 507. PUBLIC DISCLOSURE OF NONCOMPETITIVE CONTRACTING FOR THE RECONSTRUCTION OF INFRASTRUCTURE IN IRAQ. (a) Disclosure Required.-- (1) Publication and public availability.--The head of an executive agency of the United States that enters into a contract for the repair, maintenance, or construction of infrastructure in Iraq without full and open competition shall publish in the Federal Register or Commerce Business Daily and otherwise make available to the public, not later than 30 days after the date on which the contract is entered into, the following information: (A) The amount of the contract. (B) A brief description of the scope of the contract. (C) A discussion of how the executive agency identified, and solicited offers from, potential contractors to perform the contract, together with a list of the potential contractors that were issued solicitations for the offers. (D) The justification and approval documents on which was based the determination to use procedures other than procedures that provide for full and open competition. (2) Inapplicability to contracts after fiscal year 2013.-- Paragraph (1) does not apply to a contract entered into after September 30, 2013. (b) Classified Information.-- (1) Authority to withhold.--The head of an executive agency may-- (A) withhold from publication and disclosure under subsection (a) any document that is classified for restricted access in accordance with an Executive order in the interest of national defense or foreign policy; and (B) redact any part so classified that is in a document not so classified before publication and disclosure of the document under subsection (a). (2) Availability to congress.--In any case in which the head of an executive agency withholds information under paragraph (1), the head of such executive agency shall make available an unredacted version of the document containing that information to the chairman and ranking member of each of the following committees of Congress: (A) The Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives. (B) The Committees on Appropriations of the Senate and House of Representatives. (C) Each committee that the head of the executive agency determines has legislative jurisdiction for the operations of such department or agency to which the information relates. (c) Fiscal Year 2003 Contracts.--This section shall apply to contracts entered into on or after October 1, 2002, except that, in the case of a contract entered into before the date of the enactment of this Act, subsection (a) shall be applied as if the contract had been entered into on the date of the enactment of this Act. (d) Relationship to Other Disclosure Laws.--Nothing in this section shall be construed as affecting obligations to disclose United States Government information under any other provision of law. (e) Definitions.--In this section, the terms ``executive agency'' and ``full and open competition'' have the meanings given such terms in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403). SEC. 508. APPLICABILITY OF CERTAIN PROVISIONS TO SOLE SOURCE CONTRACTS FOR ITEMS AND SERVICES TREATED AS COMMERCIAL ITEMS. (a) In General.--No contract awarded on a sole source basis for the procurement of items or services that are treated as or deemed to be commercial items pursuant to the amendments made by section 401, 404, or 502 of this Act shall be exempt from-- (1) cost accounting standards promulgated pursuant to section 26 of the Office of Federal Procurement Policy Act (41 U.S.C. 422); and (2) cost or pricing data requirements (commonly referred to as truth in negotiating) under section 2306a of title 10, United States Code, and section 304A of title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254b). (b) Limitation.--This section shall not apply to any contract in an amount less than $15,000,000. Union Calendar No. 140 108th CONGRESS 1st Session H. R. 1837 [Report No. 108-117, Parts I and II] _______________________________________________________________________ A BILL To improve the Federal acquisition workforce and the process for the acquisition of services by the Federal Government, and for other purposes. _______________________________________________________________________ September 3, 2003 Reported from the Committee on the Judiciary with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed