Pandemic Darlings The pandemic economy, in original documents
Home Source documents 108 Stat. 3243 — Public Law 103-355 — Federal Acquisition Streamlining Act of 1994 (Oct. 13, 1994)

108 Stat. 3243 — Public Law 103-355 — Federal Acquisition Streamlining Act of 1994 (Oct. 13, 1994)

Summary

Public Law 103-355, the Federal Acquisition Streamlining Act of 1994, is an act to revise and streamline the acquisition laws of the Federal Government, approved October 13, 1994 and printed at 108 Stat. 3243. Its ten titles cover contract formation, contract administration, service-specific and major systems statutes, the simplified acquisition threshold, acquisition management, other procurement-related matters, small business and socioeconomic laws, commercial items, a Federal acquisition computer network, and effective dates. Section 4001 defines the simplified acquisition threshold as $100,000. The amended Small Business Act reserves each contract for goods and services with an anticipated value greater than $2,500 but not greater than $100,000 exclusively for small business concerns, subject to the exceptions the section sets out.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                PUBLIC LAW 103-355—OCT. 13, 1994                                   108 STAT. 3243

Public Law 103-355
103d Congress
                                      An Act
To revise and streamline the acquisition laws of the Federal Government, and             Oct. 13,1994
                              for other purposes.                                         [S. 1587]

    Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,                                    Federal
                                                                                       Acquisition
SECTION 1. SHORT TITLE.                                                                Streamlining
                                                                                       Act of 1994
     This Act may be cited as the 'Tederal Acquisition StreamUning contracts
Act of 1994".                                                                          42 u s e 251 note.
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 AcQuismoNS
                       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 ana delivery order contracts.
Sec. 1005. Acquisition of expert services.
           SUBPART B—PLANNING, SOUCITATION, 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 OP 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 ana delivery order contracts.




    79-194 O—95—20 : QL 3 Part 4
108 STAT. 3244             PUBLIC LAW 103-355—OCT. 13, 1994
            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—GRINDS OF CONTRACTS
            Sec. 1071. Repeal of agency head determination regarding use of cost type or incen-
                          tive 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 cer-
                          tain overpayments.
            Sec. 1210. Repeal of superseded provision.
                                  PART II—CIVILIAN AGENCY ACQUISITIONS
            Sec. 1251. Revision of civilian agency provisions to ensure imiform 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 Ap-
                          peals.
            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 date processing equipment by Fed-
                          eral agencies.
                          Subtitle E—Policy, Definitions, and Other Matters
                                  PART I—ARMED SERVICES ACQUISITIONS
            Sec. 1501. Repeal of poUcy stetement.
                PUBLIC LAW 103-355—OCT. 13, 1994                                  108 STAT. 3245
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 produc-
              tion 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 n—CONTRACT ADMINISTRATION
                         Subtitle A—Contract Payment
                      PART I—ARMED SERVICES ACQUISITIONS
Sec. 2001. Contract financing.
Sec. 2002. Repeal of vouchenng procediures 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 peri-
              ods.
                      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 contrac-
             tors.
                      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.
108 STAT. 3246             PUBLIC LAW 103-355—OCT. 13, 1994
            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 obso-
                          lete 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 as-
                          sistance services.
            Sec. 2455. Uniform suspension and debarment.
                 TITLE m—SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES
                                  Subtitle A—^Msyor 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 be-
                          fore development or production.
            Sec. 3005. Baseline description.
            Sec. 3006. Repeal of requirement for competitive prototjrping for major programs.
            Sec. 3007. Repeal of requirement for competitive alternative sources for mtgor pro-
                          grams.
                                       Subtitle B—^Testing Statutes
            Sec. 3011. Authority of Director of Operational Test and Evaluation to commu-
                          nicate 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 con-
                          tracts.
            Sec. 3024. Repeal of requirement for construction of vessels on Pacific coast.
            Sec. 3025. Scientific investigation and reseeutih for the Navy.
                                   Subtitle D—Civil Reserve Air Fleet
            Sec. 3031. Definitions.
            Sec. 3032. Consolidation of provisions relating to contractual commitment of air-
                         craft.
            Sec. 3033. Use of military installations by contractors.
                                       Subtitle E—^Miscellaneous
            Sec. 3061. Regulations on procurement, production, warehousing, and supply dis-
                          tribution 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 distribu-
                          tion.
            Sec. 3065. Codification {md revision of limitation on lease of vessels, aircraft, and
                          vehicles.
            Sec. 3066. Soft drink supplies.
            Sec. 3067. Disbursement of funds of militaiy department to cover obligations of an-
                          other 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.
                PUBLIC LAW 103-355—OCT. 13, 1994                                 108 STAT. 3247
     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 proctu^ment test p r o - a m .
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 regula-
             tions.
Sec. 5093. Sense of Congress on negotiated rulemaking.
         TITLE VI—OTHER PROCUREMENT-RELATED MATTERS
Sec. 6001. Post-emjjlojrment 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 De-
              fense, Coast Guard, and National Aeronautics and Space Administra-
              tion.
Sec. 6006. Whistleblower protections for contractor employees of civilian agencies.
Sec. 6007. Comptroller General review of the provision of legal advice for Inspec-
              tors General.
Sec. 6008. Cost savings for official travel.
Sec. 6009. Prompt resolution of audit recommendations.
       TITLE Vn—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 progrsun for negotiation of comprehensive small busi-
              ness subcontracting plans.
Sec. 7104. Small Business Procurement Advisory Council.
Sec. 7105. Extension of defense contract goal to Coast Guard and National Aero-
              nautics and Space Administration.
Sec. 7106. Procurement goals for small business concerns owned by women.
Sec. 7107. Development of definitions regarding certain small business concerns.
108 STAT. 3248             PUBLIC LAW 103-355-OCT. 13, 1994
            Sec. 7108. Functions of Office of Federal Procurement Policy relating to small busi-
                         ness.
                                     Subtitle B—Socioeconomic Laws
            Sec. 7201. Acquisitions generally.
            Sec. 7202. Prohibition on use of funds for documenting economic or employment im-
                          pact of certain acquisition programs.
            Sec. 7203. Merit-based award of contracts and grants.
            Sec. 7204. Maximum practicable opportunities for apprentices on Federal construc-
                          tion 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 enti-
                         ties.
            Sec. 7305. Contracts affected.
            Sec. 7306. Report.
                                   TITLE Vin—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 conunercial 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 re-
                          search.
                    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. GAG 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.
                PUBLIC LAW 103^55—OCT. 13, 1994                        108 STAT. 3249

        TITLE I—CONTRACT FORMATION
         Subtitle A—Competition Statutes
   PART I—ARMB]D 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 modi-
       fied" and all that follows through "note)" and inserting in
       Ueu thereof "Federal Acquisition Regulation".
SEC.    1002. ESTABUSHMENT OR MAINTENANCE OF ALTERNATIVE
               SOURCES OF SUPPLY.
    (a) ADDITIONAL JUSTIFICATION FOR ESTABLISHING OR MAINTAIN-
ING 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 availabiUty of a reUable
   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 sup-
   plies.^'.
       (b) PROHIBITION ON U S E OF CLASSES OF PURCHASES OR CON-
TRACTS.—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 COMPETI-
            TION.
     Section 2304(f)(l)(B)(i) of title 10, United States Code, is amend-
ed 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:
^§ 2304a. Task and delivery order contracts: general author-
              ity
     "(a) AUTHORITY T O 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 dehvery order
108 STAT. 3250             PUBLIC LAW 103-355—OCT. 13, 1994
               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 U S E 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).
Regulations.        "(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 imder the authority
                    of paragraph (1)(B); and
                         "(B) establish criteria for determining when award of mul-
                    tiple task or delivery order contracts would not be in the
                    best interest of the Federal (jovemment.
                    "(e) CONTRACT MODIFICATIONS.—^A task or delivery order may
               not increase the scope, period, or maximiun 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 ASSIST-
               ANCE SERVICES.—Except as otherwise specifically provided in sec-
               tion 2304b of this title, this section does not apply to a task
               or deUvery 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.—Noth-
               ing 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.
              PUBLIC LAW 103-355—OCT. 13, 1994                         108 STAT. 3251
**§ 2304b. Task order contracts: advisory and as sistance serv-
              ices
     "(a) AUTHORITY T O AWARD.—(1) Subject to the requirements
of this section, section 2304c of this title, and other appUcable
law, the head of an agency may enter into a task order contract
(as defined in section 2304d of tms title) for procurement of advisory
and assistance services.
     "(2) The head of an agency may enter into a task order contract
for procurement of ad\isory and assistance services only imder
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 other-
wise, may not exceed five years unless a longer period is specifically
authorized in a law that is appUcable to such contract.
     "(c) CONTENT OF NOTICE.—^The notice required by section 18
of the Office of Federal Procurement Pohcy 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 soUcitation 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 soUcitation 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 soUcitation shall—         ^
          "(A) provide for a multiple award authorized under para-
     graph (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) P a r a ^ a p h (2) does not apply in the case of a soUcitation
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 speciaUzed, 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 whicn the order is issued. The scope, period, or
maximum value of the contract may be increased only by modifica-
tion of the contract.
     "(2) Unless use of procedures other than competitive procedures
is £nithorized by an exception in subsection (c) of section 2304
108 STAT. 3252           PUBLIC LAW 103-355—OCT. 13, 1994
            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 Umita-
            tion 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 commence-
                 ment 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 limita-
            tions 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 nec-
            essarily incident to, and not a significant component of, the contract.
                 "(i) ADVISORY AND ASSISTANCE SERVICES DEFINED.—In this sec-
            tion, the term 'advisory and assistance services' has the meaning
            given such term in section 1105(g) of title 31.
            "§ 2304c. Task and delivery order contracts: orders
                "(a) ISSUANCE OF ORDERS.—^The following actions are not
            required for issuEuice of a task or deUvery order under a task
            or deUvery 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
            deUvery order contracts are awarded under section 2304a(d)(l)(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 quaUty required
              PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3253
     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)(l)(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 indepena-
ent 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 imder sections 2304a and 2304b of
this title.
^§ 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 'deUvery 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:
"23048. 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 TECH-
NICAL SERVICES.—Section 2331 of title 10, United States Code,
is amended by striking out subsection (c).
    (d) PROVISIONS N O T AFFECTED.—^Nothing in section 2304a, iousc2304a
2304b, 2304c, or 2304d of title 10, United States Code, as added "o*®
108 STAT. 3254            PUBLIC LAW 103-355—OCT. 13, 1994
             by subsection (a), and nothing in the amendments made by sub-
             sections (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 Fed-
                  eral 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 follow-
                  ing: ", or (C) to procure the services of an expert for use,
                  in any litigation or dispute (including any reasonably foresee-
                  able litigation or dispute) involving the Federal Grovernment,
                  in any trial, hearing, or proceeding before any court, adminis-
                  trative 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 (BXii), 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 proposeds are
                      intended to be evaluated, and award made, without discus-
                      sions 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 Ueu thereof the
            following:
                 "(3)(A) In prescribing the evaluation factors to be included
            in each soUcitation for competitive proposals, the head of an
            agency—
                      "(i) shall clearly establish the relative importance assigned
                 to the evaluation factors and subfactors, including the quaUty
             PUBLIC LAW 103-355—OCT. 13, 1994                           108 STAT. 3255
     of the product or services to be provided (including technical
     capability, management capabiUty, prior experience, and past
     performance of the offeror);
          "(ii) shall include cost or price to the Federal Grovemment
     as an evaluation factor that must be considered in the evalua-
     tion of proposals; and
          "(iii) shall disclose to offerors whether all evaluation factors
     other than cost or price, when combined, are—
                "(I) signincantly 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 soUcitations.
      (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 soUcitation that award will be made to
     the offeror that meets the solicitation's mandatory requirements
     at the lowest cost or price.".
SEC. 1012. SOUCITATION 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 soUcitation 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 Ukehhood 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 writ-
      ten notice" and inserting in lieu thereof "transmitting, in writ-
      ing 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 insert-
      ing 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
108 STAT. 3256           PUBLIC LAW 103-355—OCT. 13, 1994
                       (2) by inserting after paragraph (4) the following new para-
                  graph (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 selecticn 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 defi-
                  cient 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 overedl
                  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 accordsuice 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 fi'om disclosure imder 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 para-
                  graph regarding the offer of the contractor awarded the con-
                  tract; 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 proce-
            dures in subchapter V of chapter 35 of title 31 and an actual
            or prospective offeror so requests, a file of the protest shall be
             PUBLIC LAW 103-355—OCT. 13, 1994                          108 STAT. 3257

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 appHcable protective order provides otherwise.
     "(3) Regulations implementing this subsection shall be consist-
ent 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 soUcitation, pro-
posed 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 DETERMINA-
             TION 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) I N GENERAL.—(1) Chapter 137 of title 10, United States
Code, is amended by inserting after section 2306a the following
new section:
*"§ 2306b. Multiyear contracts
     "(a) IN GENERAL.—^To the extent that funds are otherwise avail-
able 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 substantigJ
     savings of the total anticipated costs of carrying out the pro-
     gram through annual contracts;
          "(2) that the minimum need for the property to be pur-
     chased 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;
108 STAT. 3258          PUBLIC LAW 103-355—OCT. 13, 1994
                      "(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 reaUstic; and
                      "(6) in the case of a purchase by the Department of Defense,
                 that the use of such a contract will promote the national secu-
                rity 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 msuiner 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 regula-
            tions 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 consider-
            ation 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 SUPPLI-
            ERS.—In order to broaden the defense industrial base, the regula-
            tions 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 vmultiyear contract to any subcontractor, vendor, or
                 suppUer 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 imder 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 deUvered 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 FUND-
            ING.—^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 coste of
            cancellation or termination may be paid fi-om—
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3259
         "(1) appropriations originally available for the performance
    of the contract concerned;
         "(2) appropriations currently available for procurement of
    the t3rpe of property concerned, and not otherwise obligated;
    or
         "(3) funds appropriated for those pa3nnents.
    "(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
L A W . ^ 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 imless 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 produc-
     tion 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 procure-
ment 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 contrac-
tors) 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 Presi-
dent 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
108 STAT. 3260          PUBLIC LAW 103-355—OCT. 13, 1994
            contract negotiated priced options for varjdng the quantities of
            end items to be procured over the period of the contract.
                 "(k) INAPPLICABIUTY TO AUTOMATIC DATA PROCESSING CON-
            TRACTS.—This section does not apply to contracts for the purchase
            of properi^y to which section 111 of the Federal Property and
            Administrative Services Act of 1949 (40 U.S.C. 759) applies.
                 "(1) 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 sifter 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 ADVO-
                         CATES 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 modi-
                fied" 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 MAINTAIN-
            ING ALTERNATIVE SOURCES.—Section 303(b)(1) of the Federal Prop-
            erty 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 reUable
                source of supply of such property or service;
             PUBLIC LAW 103-355—OCT. 13, 1994                         108 STAT. 3261
         "(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 sup-
    plies. .
    (b) PROHIBITION ON U S E OF CLASSES OF PURCHASES OR CON-
TRACTS.—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. CLARIFICA'»^oN OF APPROVAL AUTHORITY FOR USE OF
            PROCisDURES OTHER THAN FULL AND OPEN COMPETI-
            TION.
    Section 303(£)(l)(B)(i) of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 253(£)(lXB)(i)) is amended
by inserting before the semicolon at the end the following: "or
by an ofGcisJ referred to in clause (ii), (iii), or (iv)".
SEC. 1054. TASK AND DELIVERY ORDER CONTRACTS.
     (a) AUTHORITY.—^Title III of the Federal Property and Adminis-
trative 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-                 41 USC 253h.
             THORTTY.
    "(a) AUTHORITY T O AWARD.—Subject to the requirements of
this section, section 303J, and other appUcable 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 U S E 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 apphes to the contract ana 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
108 STAT. 3262                PUBLIC LAW 103-355—OCT. 13, 1994
                     delivery order contracts for the same or similar services or
                     property to two or more sources.
                     "(2) No determination imder section 303(b) is required for an
                 award of multiple task or delivery order contracts under paragraph
                 (IXB).
R^ulations.          «(3) The regulations implementing this subsection shall—
                          "(A) estabhsh 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 mul-
                     tiple 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 deUvery 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) INAPPLICABIUTY TO CONTRACTS FOR ADVISORY AND ASSIST-
                 ANCE SERVICES.—Except as otherwise specifically provided in sec-
                 tion 3031, 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.—Noth-
                 ing 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.
41 u s e 253i.   "SEC. 3031. 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 other-
                 wise, may not exceed five years unless a longer period is specifically
                 authorized in a law that is appUcable 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 offisror to decide whether to
                 request the soUcitation 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 imder this section shall
                 contain the same information that is required by paragraph (1)
                 to be included in the solicitation of offers for that contract.
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3263
     "(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 soUcitation shall—
          "(A) provide for a multiple award authorized under para-
     graph (1); and
          "(B) include a statement that the head of the executive
     agency may also elect to award onlv one task order contract
     if the head of the executive agency determines in writing that
     only one of the oflFerers 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 modifica-
tion of the contract.
     "(2) Unless use of procediu"es other than competitive procedures
is authorized by an exception in subsection (c) of section 303 and
approved in accordsmce with subsection (f) of such section, competi-
tive 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 Hmita-
tion 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 commence-
     ment 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 limita-
tions 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 serv-
ices are necessarily incident to, and not a significant component
of, the contract.
108 STAT. 3264                PUBLIC LAW 103-355—OCT. 13, 1994
                      "(i) ADVISORY AND ASSISTANCE SERVICES DEFINED.—In this sec-
                 tion, the term 'advisory and assistance services' has the meaning
                 given such term in section 1105(g) of title 31, United States Code.
41 u s e 253j.   "SEC. 303J. TASK AND DELIVERY ORDER CONTRACTS: ORDERS.
                     "(a) ISSUANCE O F ORDERS.—The following actions are not
                 required for issuance of a task or deUvery 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 CoNTHACTS.^When multiple contracts
                 are awarded under section 303H(d)(l)(B) or 3031(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 deUvery 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 oppor-
                      tunity 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 quaUty 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 deUvery 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 O F WORK.—^A task or deUvery order shall
                 include a statement of work that clearly specifies aU tasks to
                 be performed or property to be deUvered 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 deUvery order
                 contracts pursuant to section 303H(d)(l)(B) or 3031(e) shall appoint
                 or designate a task and delivery order ombudsman who shedl 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
                 agencjr's competition advocate.
                      "(f) APPLICABILITY.—^This section appUes to task and deUvery
                 order contracts entered into under sections 303H and 3031.
             PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3265
'<SEC. 303K. TASK AND DELIVERY ORDER CONTRACTS: DEFINITIONS. 41 USC 253k.
    "In sections 303H, 3031, 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 'deUvery 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 deUvery
    of property during the period of the contract.".
    (b) PROVISIONS N O T AFFECTED.—Nothing in section 303H, 3031, 4i use 253h
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 DC of the Fed-
    eral 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 U S E O F 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 follow-
   ing: ", or (C) to procure the services of an expert for use,
   in any htigation or dispute (including any reasonably foresee-
   able litigation or dispute) involving the Federal Ciovemment,
   in any trial, hearing, or proceeding before any court, adminis-
   trative 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(cXl) 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 oi subparagraph
    (E) £uid 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 Utigation or dispute) involving the Federal Govern-
    ment in any trial, hearing, or proceeding before any court,
    administrative tribunal, or agency, or in any part of an alter-
    native dispute resolution process, whether or not the expert
    is expectea to testify.".
    (2) Section 8(gXl) 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 oi subparagraph
    (E) and inserting in lieu thereof"; or"; and
         (C) by adding at the end the following:
108 STAT. 3266              PUBLIC LAW 103-355—OCT. 13, 1994
                         "(F) the procurement is for the services of an expert for
                    use in any Htigation or dispute (including preparation for any
                    foreseeable litigation or dispute) that involves or could involve
                    the Federal (rovemment 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.".
41 u s e 261.       (c) REPEAL OF AMENDMENTS TO UNCODIFIED TITLE.—The follow-
                ing 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 discus-
                         sions with the offerors (other thsui 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 a t the end the following new subsections:
                    "(cXl) 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 evalua-
                    tion ofproposals; 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
             PUBLIC LAW 103-355—OCT. 13, 1994                         108 STAT. 3267
               "(iii) significantly less important than cost or price.
    "(2) The regulations implementing subparagraph (C) of para-
graph (1) may not define the terms 'significantly more important'
and 'significantly less important' as specific numeric weights that
would be applied uniformly to all sohcitations or a class of solicita-
tions.
    "(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 Prop-
erty 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 sub-
     section (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) £uid may award a contract—
          "(A) after discussions with the offerors, provided that writ-
     ten 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 discus-
     sions with the offerors (other than discussions conducted for
     the purpose of minor clarification), if, as required by section
     303A(b)(2)(B)(i), the soHcitation included a statement that
     proposals are intended to be evaluated, and award made, with-
     out discussions, unless discussions are determined to be nec-
     essary.";
               (B) by striking out paragraphs (2) and (3) £ind 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 sen-
          tence.
SEC. 1062. SOLICITATION PROVISION REGARDING EVALUATION OF
            PURCHASE OPTIONS.
     Section 303A of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253a), as amended by section 1061,
is further amended by adding at the end the following new sub-
section:
     "(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.".
108 STAT. 3268           PUBLIC LAW 103-355—OCT. 13, 1994
             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 writ-
                 ten notice" and inserting in lieu thereof "transmitting, in writ-
                 ing or by electronic means, notice"; and
                       (2) by adding at the end the following: "Within 3 days
                  after the date of contract awara, 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 insert-
                 ing 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 Serv-
             ices 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 sub-
                   section (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
             aft^er the date on which the unsuccessful offeror receives the notifica-
             tion 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 agenc/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
             PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3269
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 ofiTer 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 Serv-
ices 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 appUcable protective order
provides otherwise.
     "(3) Regulations implementing this subsection shall be consist-
ent with the regulations regarding the preparation and submission
of an agenc/s protest file (the so-called 'rule 4 file') for protests
to the General Services Board of Contract Appe£ds 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 Serv-
ices Act of 1949 (41 U.S.C. 253b), as amended by section 1065,
is further amended by adding at the end the following new sub-
section:
     "(i) AGENCY ACTIONS ON PROTESTS.—If, in connection with a
protest, the head of an executive agency determines that a solicita-
tion, proposed award, or award does not comply with the require-
ments 01 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.".
108 STAT. 3270                PUBLIC LAW 103-355—OCT. 13, 1994
                               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 Serv-
                 ices 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:
41 u s e 254c.   "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 efiect, 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 competi-
                          tion or promoting economy in administration, performance,
                          and operation of the agencjr'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 pa3dng termi-
                 nation costs shall remain available for such purpose imtil 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 pa)nnent 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 author-
                 izes multiyear contracts.**.
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3271
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 3031 the following
new section:
"SEC. 303L. SEVERABLE SERVICES CONTRACTS FOR PERIODS CROSS-               41 USC 253/.
             ING 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.                                         31 USC 1535
    (a) REGULATIONS REQUIRED.—The Federal Acquisition Regula-             ^°^'
tion 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 con-
          tract 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 cov-
     ered 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 advsmce by the senior procurement official respon-
     sible for purchasing by the ordering agency; and
          (4) prohibit any pajonent 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
108 STAT. 3272               PUBLIC LAW 103-355—OCT. 13, 1994
                    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 collect-
                ing 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 selec-
                      tion of contractors.".
41 use 405 note.      (b) GUIDANCE REQUIRED.—(1) Congress makes the following
                 findings:
                           (A) Past contract performance of an oflFeror 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)(l) 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 informa-
                      tion on past contract performance that, to the msudmum extent
                      practicable, facilitate automated collection, maintenance, and
                      dissemination of information and provide for ease of collection,
                      maintenance, and dissemination of information by other meth-
                      ods, as necessary;
                           "(C) policies for ensuring that—
                                 (i) offerors are afforded an opportunity to submit rel-
                           evant information on past contract performance, including
                           performance under contracts entered into by the executive
                           agency concerned, contracts entered into by other depart-
                           ments and agencies of the Federal Government, contracts
             PUBLIC LAW 103-355—(Xrr. 13, 1994                      108 STAT. 3273

          entered into by agencies of State Eind local governments,
          and contracts entered into by commercial customers; and
               "(ii) such information submitted by offerors is consid-
          ered; 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 COM-
             PETITION.
    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 PoUcy Act (41 U.S.C. 401
et seq.) is amended by adding at the end the following new section:
"SEC. 29. NONSTANDARD CONTRACT CLAUSES.                                  41 USC 425.
    "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 respon-
    sibiUty 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 fiscsd year 1994 constant dollar
value of the amount set forth. Any amount, as so adjusted, that
is not evenhr 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
108 STAT. 3274           PUBLIC LAW 103-355—OCT. 13, 1994
                      (2) by striking out subparagraph (B).
            SEC. 1202. EXCEPnONS 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) I N 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 catedog or market prices of
                          commercial items that are sold in substantial quan-
                          tities to the general public; or
                               "(iii) prices set by law or regulation; or
                          **(B) in an exceptional case when the head of the procur-
                     ing 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
                  aragraph (1)(A), submission of cost or pricing data shall not
                 Ee required imder 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
                      (IXA); and
                           "(B) the modification would not change the contract
                      or subcontract, as the case may be, fi*om 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 (l)(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 (l)(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 (aX5)
            of such section is amended by striking out "subsection (b)(2)'* and
            inserting in Ueu thereof "subsection (b)(1)(B)''.
            SEC. 1203. RESTRICTIONS ON ADDITIONAL AUTHORITY TO REQUIRE
                         COST O R PRICING DATA O R 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
               PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3275
    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 para-
    graph 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 CER-
    TIFIED 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 sub-
    contract, the head of the procuring activity may require submis-
    sion 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; sind
          (2) by inserting after subsection (c) the following new sub-
     section (d):
    "(d) ADDITIONAL EXCEPTION PROVISIONS REGARDING COMMER-
CIAL ITEMS.—
         "(1) PROCUREMENTS BASED ON ADEQUATE PRICE COMPETI-
    TION.—^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 £ind based upon adequate
    price competition, the head of the agency conducting the
    procurement shall not require cost or pricing data to be submit-
    ted under subsection (a) for the contract, subcontract, or modi-
    fication of the contract or subcontract under the procurement.
    If additional information is necessary to determine the reason-
    ableness of the price of the contract, subcontract, or modifica-
    tion, 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 COM-
    PETITION.—(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.




   79-194 O—95—21 : QL 3 Part 4
108 STAT. 3276           PUBLIC LAW 103-355—CXTT. 13, 1994

                      "(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 sub-
                 contract under the procurement.
                      "(B) The contracting oflEicer shall exempt a contract, sub-
                 contract, 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 proce-
                 dures 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 proce-
                 dures 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 informa-
                 tion 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 Grovem-
                 ment.".
            SEC. 1206. 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 Heu thereof the following:
                 "(g) RIGHT OF UNITED       STATES T O EXAMINE       CONTRACTOR
            RECORDS.—For the purpose of evaluating the accuracy, complete-
            ness, 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(aX2) 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:
              PUBLIC LAW 103-355—OCT. 13, 1994                          108 STAT. 3277

     "(h) REQUIRED REGULATIONS.—The Federal Acquisition Regula-
tion 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 Grovernment
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 pre-
viously been sold that is adequate for evaluating the reasonableness
of the price of the proposed contract or subcontract for the procure-
ment.".
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 consist-
ent with paragraph (1)(B), another date agreed upon between the
parties," after "(or price of the modification)".
SEC. 1208. EXCEPTION FOR TRANSFERS BETWEEN DIVISIONS, SUBSIDI-
             ARIES, 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 fi'om 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 Eunended
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 1 0 1 -
510 (10 U.S.C. 2306a note) are repealed.
108 STAT. 3278                PUBLIC LAW 103-355—OCT. 13,1994
                    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 Administra-
                 tive 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:
41 u s e 254b.   "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, contrac-
                 tors, 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 proce-
                      dures 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
                           StrefimUning 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 Acquisi-
                           tion 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 (fate 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 imder a prime contract
                           referred to in subparagraph (A)(i), the price of the sub-
                           contract is expectea to exceed $500,()00;
                                "(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 Streamlin-
                           ing Act of 1994, and that has been modified pursuant
                           to paragraph (6), the price of the subcontract is expected
                           to exceed $500,000; and
             PUBLIC LAW 103-355—OCT. 13, 1994                         108 STAT. 3279

               "(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 sub-
          contract 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 sub-
          contract referred to in subparagraph (C)(iii), the price
          adjustment is expected to exceed $100,000.
     "(2) A person required, as an offeror, contractor, or subcontrac-
tor, 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 para-
graph (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 sub-
contractor 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 shsdl 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 amoimt 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) I N 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;
108 STAT. 3280           PUBLIC LAW 103-355—OCT. 13, 1994
                              "(ii) established catalog or market prices of
                         commercial items that are sold in substantial quan-
                         tities to the general public; or
                              "(iii) prices set by law or regulation; or
                         "(B) in an exceptional case when the head of the procur-
                     ing 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 (l)(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 (l)(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 T O 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 para-
                 graph for any contract or subcontract, or modification of a
                 contract or subcontract, covered by the exceptions in subsection
                 (b)(lXA).
                      "(C) The head of a procuring activity may not delegate
                 the functions under this paragraph.
                      "(2) AUTHORITY TO REQUIRE INFORMATION OTHER THAN CER-
                 TIFIED COST OR PRICING DATA.—^When certified cost or pricing
            PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3281

   data are not required to be submitted under this section for
   a contract, subcontract, or modification of a contract or sub-      ?
   contract, the head of the procuring activity may require submis-
   sion 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 COMMER-
CIAL ITEMS.—
         "(1) PROCUREMENTS BASED ON ADEQUATE PRICE COMPETI-
   TION.—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 commer-
   cial 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 deter-
   mine the reasonableness of the price of the contract, sub-
   contract, 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 COM-
   PETITION,—(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 fi*om 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 sub-
   contract under the procurement.
        "(B) The contracting officer shall exempt a contract, sub-
   contract, 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 proce-
   dures 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 infonnation described in subparagraph (A)(ii).
        "(3) AUTHORITY TO AUDIT.—(A) In accordance with proce-
   dures 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.
108 STAT. 3282           PUBLIC LAW 103-355—OCT. 13, 1994

                      "(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 Govern-
                 ment.
                 "(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 pur-
            poses 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;
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3283

          "(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 provi-
sion 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 contrac-
     tor is entitled to the offset; and
          "(ii) the contractor proves that the cost or pricing data
     were avEiilable 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 mlse
     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 overpa3anent, to
     be computed—
               "(i) for the period beginning on the date the overpay-
          ment was made to the contractor and ending on the date
          the contractor repays the amoimt 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 T O         EXAMINE CONTRACTOR
RECORDS.—For the purpose of evaluating the accuracy, complete-
108 STAT. 3284             PUBLIC LAW 103-355—OCT. 13, 1994

              ness, and currency of cost or pricing data required to be submitted
              by this section, an executive agency shall have the authority pro-
              vided by section 304C(a)(2).
                   "(h) REQUIRED REGULATIONS.—The Federal Acquisition Regula-
              tion 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 pre-
              viously been sold that is adequate for evaluating the reasonableness
              of the price of a proposed contract or subcontract for the procure-
              ment.
                  "(i) DEFINITIONS.—In this section:
                       "(1) COST OR PRICING DATA.—The term 'cost or pricing
                   data' moEuis 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.".
41 use 254b       (b) APPLICABILITY.—Subsection (a) of section 304A of the Office
note.         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 Serv-
              ices 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:
              **§ 2358. Research and development projects
                   "(a) AUTHORITY.—^The Secretary of Defense or the Secretary
              of a military department may engage in basic research, appUed
              research, advanced research, and development projects that—
                        "(1) are necessary to the responsibilities of such Secretarjr's
                   department in the field of research and development; and
                        "(2) either—
                             "(A) relate to weapon systems and other military needs;
                        or
              PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3285

              "(B) are of potential interest to the Department of
         Defense.
    "(b) AUTHORIZED MEANS.—The Secretary of Defense or the Sec-
retary of a military department may perform research and develop-
ment projects—
         "(1) by contract, cooperative agreement, or grant, in accord-
    ance with chapter 63 of title 31;
         "(2) through one or more military departments;
         "(3) by using employees and consultsuits 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 depart-
ment, 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.—Sec-
tion 2371 of such title is amended to read as follows:
"§ 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 agree-
ments, and grants) under the authority of this subsection in carry-
ing 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 Sec-
retary may designate.
      "(c) ADVANCE PAYMENTS.—^The authority provided under sub-
section (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 Federsd Grovemment as a condition
for receiving support under the agreement or other transaction.
      "(2) The amount of any pa3nnent 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
108 STAT. 3286           PUBLIC LAW 103-355—OCT. 13, 1994

            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 exist-
                 ing 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 trans-
                 action 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 tinder
                 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 estabUshed on the
            books of the Treasury separate accoimts for each of the military
            departments and the Advanced Research Projects Agency for sup-
            port 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 pa5rment of such support.
                 "(g) REGULATIONS.—^Tne 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 Rep-
            resentatives 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 trans-
            action, the following:
                       "(1) A general description of the cooperative agreement
                 or other transaction (as the case may be), including the tech-
                 nologies for which research is provided for under such agree-
                 ment or trgmsaction.
                       "(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 Grovemment during the fiscal year covered by
                 the report pursuant to a clause included in such cooperative
                 agreement or other trsinsaction pursuant to subsection (d).
                       "(5) The amount of the payments reported under paragraph
                 (4), if any, that were credited to each accoimt 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
                PUBLIC LAW 103-355—OCT. 13, 1994                            108 STAT. 3287
of each military department, in carrying out research projects,
may permit the director of £iny federally funded research and devel-
opment 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, £uid
any other entity under the authority granted fy 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 AMENDME^^^s.—^The table of sections at the begin-
ning 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) I N 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 con-
          tract.".
     (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 PEND-
             ING 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 o f and inserting in lieu thereof "one day after"; and
108 STAT. 3288           PUBLIC LAW 103-355—OCT. 13, 1994

                            (B) in paragraph (2)—
                                 (i) in subparagraph (A), by striking out "25 work-
                            ing days from" and inserting in Ueu thereof "35 days
                            after"; and
                                 (ii) in subparagraph (C), by striking out "10 work-
                            ing days from' and inserting in Ueu thereof "20 days
                            after"; and
                      (2) in subsection (c)(3), by striking out "thereafter" and
                 inserting in Ueu thereof "sifter the making of such finding",
                 (b) SUSPENSION OF PERFORMANCE.—Subsection (d) of such sec-
            tion is amended to read as foUows:
                 "(d)(1) A contractor awarded a Federal agency contract may,
            during the period described in paragraph (4), begin performsince
            of the contract and engage in any related activities that result
            in obligations being incurred by the United States under the con-
            tract 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 addi-
                 tional 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 signifi-
                      cantly affect interests of the United States will not permit
                      waiting for the decision of the Comptroller General concern-
                      ing the protest; and
                      "(u) afl«r the Comptroller (Jeneral is notified of that find-
                 ing.
                 "(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 afl^er the date of the contract
                 award; or
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3289

        "(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 Ueu 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 para-
     graph (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, witnin the time Umit 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 rec-
ommendations 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 afl«r receiving the recommenda-
tions, 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 Gen-
eral 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 Uving 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
108 STAT. 3290             PUBLIC LAW 103-355—OCT. 13, 1994

                         "(B) if the Federal agency does not make such pajnnent,
                   promptly report to the Comptroller (Jeneral the reasons for
                   the failure to follow the Comptroller CJeneral'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 Appro-
              priations of the Senate and to the Committee on Grovemment Oper-
              ations and the Committee on Appropriations of the House of Rep-
              resentatives 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 cor-
                   rect 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 sum-
              mary of each instance in which a Federal agency did not fully
              implement a recommendation of the Comptroller Greneral 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.".
31 use 3554         (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 confiden-
              tial research, development, or commercial information.
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3291
    "(C) A protective order under this paragraph shall not be consid-
ered 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 sub-
     section (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 hoHday 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 Greneral 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
108 STAT. 3292           PUBLIC LAW 103-355—OCT. 13, 1994
            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(i)) is amended—
                       (1) in paragraph (2)(B)—
                            (A) by redesignating clauses (i) and (ii) as subclauses
                       (1) 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 estab-
                 lished 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:
             PUBLIC LAW 103-355—OCT. 13, 1994                         108 STAT. 3293
    "(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 vaUd 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 ana 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 attor-
neys' 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 p a r t / , with respect to a deter-
     mination 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 dem-
     onstrated 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 appro-
priate 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 settle-
ment, 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 subpara-
graph (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 pa3naient of
108 STAT. 3294          PUBLIC LAW 103-355—OCT. 13, 1994

            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 Serv-
            ices 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 proce-
            dures 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
                      hoUday; 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 Ueu
                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 con-
                     tract."; and
                     (3) by capitalizing the first letter of the first word in
                subparagraph (B).
             PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3295
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 award-
     ing 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 agenc3^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 pursusint 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.".
108 STAT. 3296           PUBLIC LAW 103-355—OCT. 13, 1994
             Subtitle E—^Policy, DeHnitions, 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 begin-
            ning 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 Heu
                 thereof the following:
                     "(3) The following terms have the meanings provided such
                 terms in section 4 of the Office of Federal Procurement Pohcy
                 Act (41 US.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 suppl/.
                          "(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 contin-
                 gency operation, the term means an amount equal to two times
                 the amount specified for that term in section 4 of such Act.".
            SEC. 1603. DELEGATION OF PROCUREMENT FUNCTIONS.
                (a) CONSOLIDATION OF DELEGATION AUTHORITY.—(1)              Section
            2311 of title 10, United States Code, is amended to read as follows:
            **§ 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 facihtate joint procure-
            ment by those agencies—
               PUBLIC LAW 103-355—OCT. 13, 1994                                108 STAT. 3297

          "(1) the head of an agency may delegate functions and
     assign responsibiUties 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 respon-
     sibilities from one agency to another of tnose 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 pre-
scribe regulations that prohibit each military department participat-
ing 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. 1604. DETERMINATIONS AND DECISIONS.
    Section 2310 of title 10, United States Code, is amended to
read as follows:
**§2310. D e t e r m i n a t i o n s a n d 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.
108 STAT. 3298          PUBLIC LAW 103-355—OCT. 13, 1994

                "(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 EXPENDI-
                 TURE";
                      (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 Ueu
                      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 para-
                 graph (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. R E P E A L OF REQUIREMENT RELATING TO PRODUCTION SPE-
                           CIAL TOOLING AND PRODUCTION SPECIAL TEST EQUIP-
                           MENT.
                (a) REPEAL.—Section 2329 of title 10, United States Code, is
            repealed.
                (b) CLERICAL AMENDMENT.—The table of sections at the begin-
            ning 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 Ueu 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):
            PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3299

          "(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 'simpUfied 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 Fed-
eral 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 FUNC-               41 USC 261.
             TIONS 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 offi-
    cer or employee within such agency;
         "(2) the heads of two or more executive agencies may l^y
    agreement delegate procurement functions and assign procure-
    ment 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 estab-
    lish joint or combined offices to exercise procurement functions
    and responsibilities.".
108 STAT. 3300               PUBLIC LAW 103-355—OCT. 13, 1994
                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:
41 u s e 262.   "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 deci-
                sion. 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 CAR-
                            TRIDGES.
                    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 PuWic 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 Cfode), or
                the District of Columbia, upon its request.
                     "(2)(A) The Administrator may provide for the use of Federal
                supply schedules of the (Jeneral 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 govern-
                     ment.
                          "(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
                faciUties.
                PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3301

         "(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 commod-
    ity 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.—Sec-
    tion 2307 of title 10, United States Code, is amended—
             (1) by striking out the section heading and inserting in
         heu thereof the following:
    **§ 2307. Contract financing^;
              (2) by inserting "PAYMENT AUTHORITY.—" after "(a)" in
         subsection (a);
              (3) by inserting "PAYMENT AMOUNT.—" after "(b)" in sub-
         section (b);
            (4) by inserting "SECURITY FOR ADVANCE PAYMENTS.—"
        £ifter "(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.




V
108 STAT. 3302           PUBLIC LAW 103-355—OCT. 13, 1994

                 (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,
              ayments under subsection (a) shsdl be made on any of the following
            E ases:
                      "(1) Performance measured by objective, quantifiable meth-
                 ods 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 sec-
            tion is amended by striking out "bid".
                 (d) EFFECTIVE DATE OF LIEN RELATED TO ADVANCE PAY-
            MENTS.—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 stand-
                ards 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 COMMERCL\L ITEMS.—(1)
            Payments under subsection (a) for commercial items may be made
            under such terms and conditions as the head of the agency deter-
            mines 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 pajonent, without filing, notice, or other action by
            the United States.
                 "(2) Advance payments made under subsection (a) for commer-
            cial 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 para-
            graphs (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
               PUBLIC LAW 103-355—OCT. 13, 1994                108 STAT. 3303

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
comp£uiies such funds as the Secretary considers necessaiy to pro-
vide 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 luider 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 hens.".
     (h) RELATIONSHIP T O PROMPT PAYMENT REQUIREMENTS.—The lo use 2307
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 begin-
ning 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 begin-
ning 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.—Sec-
tion 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:
108 STAT. 3304          PUBLIC LAW 103-355—OCT. 13, 1994
            "SEC. 305. CONTRACT FINANdNG.";
                     (2) by inserting "PAYMENT AUTHORITY.—" after "(a)" in
                subsection (a);
                     (3) by inserting "PAYMENT AMOUNT.—" after "(b)" in sub-
                section (b);
                     (4) by inserting "SECURITY FOR ADVANCE PAYMENTS.—"
                afl«r "(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 meth-
                 ods 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 sec-
            tion is amended by striking out "bid".
                 (d) EFFECTIVE DATE O F LIEN RELATED TO ADVANCE PAY-
            MENTS.—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 UNI-
            FORM REQUIREMENTS FOR PROGRESS PAYMENTS.—Such section is
            further amended by adding at the end the following new sub-
            sections:
                 "(e) CONDITIONS FOR PROGRESS PAYMENTS.—(1) The executive
            agency shall ensure that any pajnnent for work in progress (includ-
            ing materials, labor, and other items) under a contract of an execu-
            tive agency that provides for such pajonents 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, £uid
            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
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3305
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 commer-
cial items may include pa3anents, in a total amount of not more                     /
than 15 percent of the contract price, in advance of any performance
of worit 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 pajm[ient under a contract awarded
by that executive agency is based on fraud, the remedy coordination       ^
official shall recommend that the executive agency reduce or sus-
pend further pajonents to such contractor.
      "(2) The head of an executive agency receiving a recommenda-
tion 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 pa3nnents
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 execu-
tive 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 proce-
dures to ensure that, before the head of the executive agency
decides to reduce or suspend pa3nnents in the case of a contractor
under paragraph (2), the contractor is afforded notice of the pro-
posed 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 fi*aud on which the reduc-
      tion or suspension is based; and
           "(B) transmit a recommendation to the head of such execu-
      tive agency whether the suspension or reduction should con-
      tinue.
      "(7) The head of each executive agency who receives rec-
ommendations made by a remedy coordination official of the execu-
tive 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 rec-
ommendations and the reasons for such actions, and an assessment
of the effects of such actions on the Federal Grovernment. Any
108 STAT. 3306                    PUBLIC LAW 103-355—OCT. 13, 1994
                     such report shall be available to any Member of Congress upon
                     request. »
                          "(8) The head of £in executive agency may not delegate respon-
                     sibilities 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, Euid
                     contractual remedies resulting from investigations of fraud or
                     corruption related to procurement activities.".
41 u s e 255 note.         (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 PROTEC-
                                 TIONS 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 Acquisi-
                     tion Regulatory Council (established by section 25(a) of the Office
                     of Federal Procurement Policy Act) shall modify the Federal Acquisi-
                     tion Regulation (issued pursuant to section 25(c)(1) of the (3ffice
                     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
                       X      COST THAT VIOLATES A FAR COST PRINCIPLE.—";
                                   (B) by striking out "Secretary of Defense" and inserting
                              in Ueu thereof "head of an agency^';
                                   (C) by striking out "Department of Defense" and insert-
                              ing in lieu thereof "agency"; and
                                   (D) by striking out "the Department of Defense Supple-
                              ment" and inserting in Ueu thereof "applicable agency
                              supplement".
                              (2) Subsection (b) is amended—
               PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3307

               (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 Regu-
         lation"; and
              (C) by striking out "Secretarjr" each place it appears
         and inserting in lieu thereof "head of the agencjr".
         (3) Subsection (c) is amended—
              (A) by inserting after "(c)" the following: "WAIVER OF
          PENALTY.—"; and
               (B) by striking out "The Secretary shall prescribe regu-
          lations providing" in the first sentence and inserting in
          lieu thereof 'The Federal Acquisition Regulation shall pro-
          vide".
          (4) Subsection (d) is amended—
               (A) by inserting after "(d)" the following: "APPLICABIL-
          ITY 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 agencj^.
          (5) Subsection (e) is amended—
               (A) by inserting after "(e)" the following: "SPECIFIC
          COSTS N O T 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 Regu-
        lation";
              (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 Regu-
        lation";
              (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 agencjr" 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 (0 is amended—
              (A) in paragraph (1)—
                   (i) by striking out "(1)" and EJI 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 insert-
              ing in lieu thereof'The regulations"; and
              (B) in paragraphs (2), (3), and (4)—
                   (i) by striking out "defense" before "contract audi-
              tor" each place it appears, and




  79-194 0—95—22 : QL 3 Part 4
108 STAT. 3308           PUBLIC LAW 103-355—OCT. 13, 1994

                               (ii) by striking out "regulation" each place it
                          appears and inserting in lieu thereof "Federal Acquisi-
                          tion 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 sub-
            contractors 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 submis-
                 sion to the Department of Defense" and inserting in lieu thereof
                 "PENALTIES FOR SUBMISSION OF COST KNOWN AS N O T ALLOW-
                 ABLE.—^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 N O T 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 con-
                          cerned",
                               (ii) by striking out "under regulations prescribed
                          by such agency head" and inserting in lieu thereof
                          "in accordance with the Federal Acquisition Regula-
                          tion",
                               (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 T O INFLUENCE LOCAL LEGISLA-
            TIVE 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 (1) and (m) and inserting
            in lieu thereof the following:
                 "(1) DEFINITIONS.—In this section:
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3309
          "(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 fori;h 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 lO use 2324
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 begin-
ning 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 Regula-
tion (referred to in section 25(c)(1) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 421(c)(1)) or an executive agency supple-
ment to the Federal Acquisition Regulation, the cost shall be dis-
allowed.
    "(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 allow-
ability 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
108 STAT. 3310           PUBLIC LAW 103-355—OCT. 13, 1994

                      "(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 unaUowable 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 person-
                      nel training and an internal control and review system
                      that provide assurances that imallowable costs subject to
                      penalties are precluded from being included in the contrac-
                      tor'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 DIS-
            ALLOWANCE 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, diver-
                 sion, 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) legis-
                 lative 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 viola-
                 tions of, or failure to comply with. Federal, State, local, or
             PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3311

    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, £uid 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 pa3nnent') which is—
               "(i) in an amount in excess of the normal severance
         pay paid by the contractor to an employee upon termination
         of emplojonent; and
               "(ii) is paid to the employee contingent upon, and fol-
         lowing, 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 for-
    eign nationals employed by the contractor under a service con-
    tract 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 simi-
    lar 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 sidministrative 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 activ-
    ity 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
108 STAT. 3312           PUBLIC LAW 103-355—OCT. 13, 1994
                 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 grant-
                 ing a waiver, the criteria to be used in granting the waiver.
                 "(C) An executive agency shall make the final determination
            regarding whether to grsint 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, Umitations, 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 manage-
            ment 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 solic-
                 ited 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.
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3313

    "(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 allowabiUty
    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 allowabiUty 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 SuBcohfTRACTORS.—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 sub-
contractors 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 N O T ALLOW-
ABLE.—^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 regula-
tion 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 (ilode.
    "(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 reasonable-
ness of indirect costs for which a contractor seeks reimbursement
fi'om 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 N O T ALLOWABLE.—(1) Except as other-
wise 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).
108 STAT. 3314           PUBLIC LAW 103-355—OCT. 13, 1994

                 "(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 deter-
                 mination 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
                            "(iif.) 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 com-
                 promise 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 contrac-
            tor 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 accord-
            ance 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 para-
            graph (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 imder the
            Federal Acquisition Regulation.
                 "(ii) Regulations issued for the piu-pose 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
              PUBLIC LAW 103-355—OCT. 13, 1994                           108 STAT. 3315

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 serv-
               ices performed by an employee of the contractor;
                     "(III) the cost of the services of accountants and
               consultants retsdned 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.
     "(1) 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 incen-
tives 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 Pohcy Act
(41 U.S.C. 420) is repealed.
SEC. 2192. REVISION OF COST PRINCIPLE RELATING TO ENTERTAIN- 41 USC 256 note.
             MENT, GIFT, AND RECREATION COSTS FOR CONTRACTOR
             EMPLOYEES.
    (a) COSTS N O T ALLOWABLE.—(1) The costs of gifts or recreation
for employees of a contractor or members of their famiUes 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 afl«r the date of the
enactment of this Act, the Federal Acquisition Regulatory Council
prescribes amendments to the Federal Acquisition Regulation speci-
fying 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
108 STAT. 3316             PUBLIC LAW 103-355—OCT. 13, 1994

            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(1) of title 10, United States Code
                (as amended by section 2101(c)), and section 306(1) of the Fed-
                eral Property and Administrative Services Act of 1949 (as added
                by section 2151).
                (c) EFFECTIVE DATE.—^Any amendments to the Federal Acquisi-
            tion 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 EXAM-
                         INE RECORDS OF CONTRACTORS.
                  (a) AUTHORITY.—(1) Section 2313 of title 10, United States
            Code, is amended to read as follows:
            **§ 2313. E x a m i n a t i o n of r e c o r d s of c o n t r a c t o r
                 "(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, incen-
                 tive, 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 sub-
                 contracts under a contract referred to in subparagraph (A).
                 "(2) The head of an agency, acting through gin authorized rep-
            resentative, 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).
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3317

     "(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 redele-
gated.
     "(4) The Director (or any successor official) shall submit an
annual report to the Secretsuy 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 pro-
vided in paragraph (2), each contract awarded after using proce-
dures 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 Greneral or his designee, that the appKcation 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 availabihty 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 busi-
ness 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 imder 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 sifter 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 pubHc, plus any
     applicable reasonable connection charge.
108 STAT. 3318                   PUBLIC LAW 103-355—OCT. 13, 1994

                      "(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) U S E 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 elec-
                 tronic images of the original records and meets tne following
                 requirements:
                            "(1) The contractor or subcontractor has estabUshed proce-
                      dures to ensure that the imaging process preserves the integ-
                      rity, 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, accoiuiting procedures and practices,
                 and other data, regardless of tjrpe 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 Adminis-
                 trative 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:
41 u s e 254d.   "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, incen-
                      tive, 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 sub-
                      contracts under a contract referred to in subparagraph (A).
                     "(2) The head of an executive agency, acting through £in author-
                 ized 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
            PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3319

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 execu-
tive agency appointed under section 3 or 8G of the Inspector Greneral
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 (Jeneral 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 dele-
gated.
     "(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 shedl submit to the Committee on Govern-
mental MFairs 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 pro-
vided in paragraph (2), each contract awarded after using proce-
dures 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 Comptrol-
ler General or his designee, that the apphcation of that paragraph
to the contract or subcontract would not be in the public interest.
However, the concurrence of the Comptroller General or his des-
ignee 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 appl)dng paragraph (1).
     "(3) Paragraph (1) may not be construed to require a contractor
or subcontractor to create or meiintain any record that the contractor
or subcontractor does not maintain in the ordinary course of busi-
ness 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
108 STAT. 3320          PUBLIC LAW 103-355—OCT. 13, 1994

            in any case in which the contracting officer determines that the
            objectives of the audit can reasonably be met by accepting the
            results of £ui 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 luider
            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) U S E 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 origineJ records and meets the following requirements:
                      "(1) The contractor or subcontractor has established proce-
                 dures to ensure that the imaging process preserves the integ-
                 rity, 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:
            **§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 oi the contractor certifies, at the
            time the request is submitted, that—
                PUBLIC LAW 103-355—OCT. 13, 1994                             108 STAT. 3321

         **(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 beUef.
     "(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 8 5 -
804 (50 U.S.C. 1431 et seq.) regarding such contract may be imple-
mented 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 pa3mient directed by that provision of law.
     "(c) DEFINITION.—In this section, the term 'simplified acquisi-
tion 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 begin-
ning 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:
'^410. Requests for equitable acyustment or other relief: certification.".
SEC. 2302. SHIPBUILDING CLAIMS.
    (a) INCREASE IN TIME PERIOD DURING WmcH ADJUSTMENTS
TO SHIPBUILDING CLAIMS MAY B E 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 Streamlin-
    ing Act of 1994, occurred more than 6 years before the submis-
    sion of the claim, request, or demand.".
     (b)   RESUBMISSION         WITH      CORRECTED         CERTIFICATION.—Sub-
section (c) of such section is amended by adding at the end the
following:
     "(4) This subsection appUes 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) 10 USC 2405
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).
108 STAT. 3322              PUBLIC LAW 103-355—OCT. 13, 1994
                      PART II—ACQUISITIONS GENERALLY
               SEC. 2351. CONTRACT DISPUTES ACT IMPROVEMENTS.
                   (a) PERIOD FOR FILING CLAIMS.—Section 6 of the Contract Dis-
                  utes Act of 1978 (41 U.S.C. 605) is amended in subsection (a)
               E  y 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 clEiim. 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.".
41 use 605 note.      (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 tnat 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 insert-
               ing 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 'Tsoard," and inserting in lieu thereof
                    "tribunal concerned,".
               SEC. 2362. E X T E N S I O N 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 GOVERN-
               MENT CONTRACTORS.^^ection 6(e) of such Act is amended by insert-
               ing 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
            PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3323

for alternative dispute resolution proceedings, the contractor shall
inform the agency in writing of the contractor's specific reasons
for rejecting the request.".
SEC. 2363. EXPEDITED RESOLUTION OF CONTRACT ADMINISTRATION               15 USC 644 note.
             MATTERS.
     (a) REGULATIONS REQUIRED.—(1) The Federal Acquisition Regu-
lation 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 con-
cern" 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 para-
graph (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.".
108 STAT. 3324           PUBLIC LAW 103-355—OCT. 13, 1994
                          Subtitle E—^Miscellaneous
                 PART I—ARMED SERVICES ACQUISITIONS
            SEC. 2401. CLARIFICATION OF PROVISION RELATING TO QUALITY CON-
                         TROL 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 establish-
            ing the appropriate qualification requirements, the Secretary of
            Defense shall use the Department of Defense qualification require-
            ments 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 imnecessary.".
            SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.
  v^             (a) REPEAL OF REQUIREMENT FOR REPORT ON WAIVERS.—Sub-
            section (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 T O B E ADDRESSED BY REGULATIONS.—Sub-
            section (h) of such section is amended—
                      (1) by redesignating paragraph (2) as p a r a ^ a p h (3); and
                      (2) by inserting after paragraph (1) the following new para-
                 graph (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, howevfer, 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:
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3325

          "(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 partici-
    pating 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 depart-
          ment 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 pa3rment.
     "(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 Hability
on the part of the assignee to make restitution, refund, or repajnnent
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 Presi-
dent, 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
108 STAT. 3326             PUBLIC LAW 103-355—OCT. 13, 1994
                       "(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 impsiir rights of obligations heretofore
              accrued.".
              SEC. 2452. REPEAL OF REQUIREMENT FOR DEPOSIT OF CONTRACTS
                           WTTHGAO.
                  Section 3743 of the Revised Statutes (41 U.S.C. 20) is repealed.
              SEC. 24S3. REPEAL OF OBSOLETE DEADLINE REGARDING PROCE-
                          DURAL REGULATIONS FOR THE COST ACCOUNTING
                          ^STANDARDS BOARD.
                  Section 26(f)(3) of the Office of Federal Procurement Policy
              Act (41 U.S.C. 422(fK3)) 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. 2464. CODIFICATION OF ACCOUNTING REQUIREMENT FOR CON-
                           TRACTED ADVISORY AND ASSISTANCE SERVICES.
                  (a) FUNDING To B E 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 serv-
              ices' does not include the following services:
                         "(i) Routine automated data processing and telecommimi-
                   cations services unless such services are an integral part of
                   a contract for the procurement of advisory and assistance serv-
                   ices.
                         "(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 Pubhc Law 102-
31 use 1105   394 (106 Stat. 1826) is repealed.
°o*e-              (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.
             PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3327

SEC. 2455. UNIFORM SUSPENSION AND DEBARMENT.                            31 USC 6101
                                                                        note.
     (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
iinder 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 T O GRANT EXCEPTION.—The regulations issued
pursuant to subsection (a) shall provide that an agency may grant
an exception permittinjg a debarred, suspended, or otherwise
excluded party to participate in procurement activities of that
agency to the extent exceptions are authorized under the Federsd
Acquisition Regulation, or to participate in nonprocurement activi-
ties 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 pro-
     grams and activities involving Federal financial and non-
     finsmcial assistance and benefits, as covered by Executive Order
     No. 12549 and the Ofiice of Management and Budget guideUnes
     implementing t h a t 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 T O B E 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 Ueu thereof a period;
108 STAT. 3328           PUBLIC LAW 103-355—OCT. 13, 1994

                     (4) by striking out "; and" at the end of paragraph (3)
                 and inserting in Heu thereof a period; £ind
                     (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 shifl; 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 k6ep production hnes 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 O F 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 mean-
            ing" and all that follows through the end of the paragraph and
            inserting in lieu thereof the following: "means all costs of develop-
            ment, procurement, military construction, and operations and sup-
            port, 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: "When-
            ever 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 incor-
            porated 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 sub-
            section is further amended in paragraph (3) by striking out subpara-
            graph (C).
            PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3329

    (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)(3XA) 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 Ueu 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 Ueu thereof "Baseline Estimate";
          and
               (ii) by striking out "Selected Acquisition Report in
          which" and all that follows through the end of the para-
          graph and inserting in lieu thereof "cost estimate included
          in the baseline description for the program under section
          2435 ofthis 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 Heu thereof "BaseUne
     Estimate".
     (b) CONTENTS OF U N I T 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 U N I T COST REPORT REQUIRE-
MENT.—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 subpara^aphs (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 ofthis title)".
      (e) CONTENTS OF SAR.—Subparagraph (I) of section 2433(g)(1)
of such title is amended to read as follows:
108 STAT. 3330           PUBLIC LAW 103-355—OCT. 13, 1994

                     "(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 tne fiill 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 mili-
                       tary department. Defense Agency, or other component of
                       the Department of Defense that is directly responsible for
                       carrjdng 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 deplo)nnent; 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) I N GENERAL.—Section 2435 of title 10, United States Code,
            is amended to read as follows:
            **§ 2435. Baseline d e s c r i p t i o n
                 "(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 with-
            out an approved baseline description unless such obligation is
                PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3331

specifically approved by the Under Secretary of Defense for Acquisi-
tion 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 valida-
     tion;
          "(2) before the program enters engineering and manufactur-
     ing 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 depart-
     ment concerned and the Under Secretary of Defense for Acquisi-
     tion 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 approved by, the
     Secretary of Defense of revised baseline descriptions.",
     (b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning 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 begin-
ning of chapter 144 of such title is amended by striking out the
item relating to section 2438.
SEC. 3007. REPEAL OF REQUIREMENT FOR COMPETITIVE ALTER-
            NATIVE 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 begin-
ning 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 commu-
nicate 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.".
108 STAT. 3332           PUBLIC LAW 103-355—OCT. 13, 1994
            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 psiragraph
                (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 hve fire testing
            activities)" in the first sentence after "operational test and evalua-
            tion 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 afl«r 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) I N 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 strilang 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 improve-
            ment 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 improve-
            ment 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)—
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3333

               (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 maniifactur-
          ing 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 num-
     ber 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 para-
     graph (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 imit 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 SecretEiry
of Defense may accept the gratuitous services of an officer of a
reserve component (other than £in 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 lO use 10212
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 "seU," 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 begin-
ning of chapter 633 of such title is amended by striking out the
item relating to section 7299.
108 STAT. 3334           PUBLIC LAW 103-355—OCT. 13, 1994
            SEC. 3024. REPEAL OF REQUIREMENT FOR CONSTRUCTION OF VES-
                         SELS ON PACIFIC COAST.
                (a) REPEAL.—Section 7302 of title 10, United States Code, is
            repealed.
                (b) CLERICAL AMENDMENT.—The table of sections at the begin-
            ning 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.—Thie table of sections at the begin-
            ning 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 Ueu 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), respec-
                 tively; and
                      (4) in paragraph (11), as so redesignated—
                         (A) by striking out "interoperabihty" and inserting in
                      lieu thereof "compatibiUty"; and
                           (B) by inserting "an aeromedical aircraft or" before
                      "a cargo-convertible, .
                 (c) TECHNICAL CORRECTION.—Such section is amended by strik-
            ing out "In this subchapter:" and inserting in lieu thereof "In
            this chapter:".
            SEC. 3032. CONSOLIDATION OF PROVISIONS RELATING TO CONTRAC-
                           TUAL COMMITMENT OF AIRCRAFT.
                 Chapter 931 of title 10, United States Code, is amended—
                      (1) in subsection (a) of section 9512, by inserting "AUTHOR-
                 ITY TO CONTRACT.—" after "(a)";
             PUBLIC LAW 103-355—OCT. 13, 1994                          108 STAT. 3335
       (2) in subsection (c) of section 9512, by striking out "(c)"
    and inserting in lieu thereof "(d) AUTHORITY T O CONTRACT
    AND PAY DIRECTLY.—";
        (3) in subsection (b) of section 9512, by striking out "(b)"
    and inserting in lieu thereof "(c) TERMS AND REQUIRED REPAY-
    MENT.—";
         (4) by redesignating subsection (a) of section 9513 as sub-
    section (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 sub-
    section (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 sec-
         tion"; 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 ofthis 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 sec-
        tion"; 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:
'^ISSIS. Use of m i l i t a r y installations b y Civil R e s e r v e Air
            Fleet c o n t r a c t o r s
    "(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 installa-
     tions 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, des-
     ignated 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 ^ r 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 sub-
section (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
108 STAT. 3336              PUBLIC LAW 103-355—OCT. 13, 1994

            within the United States, for other commercial purposes. Notwith-
            standing 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 pertsdns. Amounts so credited to an appropria-
            tion shall be available for obligation for the same period as the
            appropriation to which credited.
                 "(d) HOLD HARMLESS REQUIREMENT.—A contract entered into
            imder 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 con-
            tract entered into under subsection (a) shall provide that the Sec-
            retary 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 be^n-
            ning 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) I N GENERAL.—Section 2202 of title 10, United States Code,
            is amended to read as follows:
            '^§2202. Regulations o n 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 procure-
            ment, 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 distribu-
                       tion fimctions.".
            SEC. 3062. R E P E A L OF REQUIREMENTS REGARDING PRODUCT EVALUA-
                           TION ACTIVITIES.
                (a) REPEAL.—Section 2369 of title 10, United States Code, is
            repealed.
                PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3337

    (b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning 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 cop3rrights
     or for unauthorized use of technical data or computer software.".
SEC. 3064. U Q U m FUELS AND NATURAL GAS: CONTRACTS FOR STOR-
             AGE, 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:
**§ 2401a. Lease of vessels, aircraft, and vehicles
     "The Secretary of Defense or the Secretary of a military depart-
ment 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 (jrovernment.".
     (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 PubUc
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 DEPART-
             MENT 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".
108 STAT. 3338                PUBLIC LAW 103-355—OCT. 13, 1994

                    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:
                 **§ 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 begin-
                 ning of such chapter is amended by inserting after the item relating
                 to section 2302 the following new item:
                 "23028. 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:
41 u s e 252a.   "SEC. 302A. SIMPLIFIED ACQUISITION THRESHOLD.
                      "(a) SIMPLIFIED ACQUISITION THRESHOLD.—For purposes of
                 acquisitions by executive agencies, the simplified acquisition thresh-
                 old is as specified in section 4(11) of the Office of Federal Procure-
                 ment 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)(l) 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 con-
                 cerns 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
                  PUBLIC LAW 103-355—OCT. 13, 1994                    108 STAT. 3339

Business Opportunity Development Reform Act of 1988 (Public
Law 100-656; 15 U.S.C. 644 note), or section 7102 of the Federal
Acquisition Streandining Act of 1994.".

Subtitle B—Inapplicability of Laws to Ac-
 quisitions at or Below the Simplified Ac-
 quisition Threshold
SEC. 4101. UST OF INAPPUCABLE 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 foUoAving new section:
"SEC. 33. UST OF LAWS INAPPUCABLE TO CONTRACTS NOT GREATER                 41 USC 429.
             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 Ust pursuant to paragraph
(2) may not be construed as appUcable to such contracts or sub-
contracts (as the case may be) by an executive agency. Nothing
in this section shall be construed to render inappUcable to contracts
and subcontracts in amounts not greater than tne simplified acquisi-
tion threshold any provision of law tiiat is not included on such
hst.
     "(2) A provision of law described in subsection (b) that is enacted
after the date of the enactment of the Federal Acquisition Stream-
Uning Act of 1994 shedl be included on the Ust 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 CJovernment
to exempt contracts or subcontracts in amounts not greater than
the simplified acquisition threshold from the appUcabiUty 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 inappHcable 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 Adminis-
trator 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




  79-194   O—95—23 : QL 3 P a r t 4
108 STAT, 3340           PUBLIC LAW 103-355—OCT. 13, 1994

            law unless the Federal Acquisition Regulatory Council makes a
            determination pursuant to subsection (aX2) 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 OfiBce of Fed-
            eral 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 T O EXAMINE BOOKS AND
            RECORDS OF CONTRACTORS.—Section 2313 of title 10, United States
            Code, as amended by section 2201, is fiu*ther 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 T O 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 PoHcy 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 heu
            thereof "greater than the simpUfied acquisition threshold (as defined
            in section 4(11) of the Office of Federal Procurement PoUcy Act
            (41 U.S.C. 403(11))).".
                (f) INAPPLICABILITY OF PROHIBITION ON LIMITING SUBCONTRAC-
            TOR 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 PoUcy
            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 PoUcy Act (41 U.S.C. 403( 11))).
             PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3341

         "(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 Secretarjr"; 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 LIMITA-
TIONS.—Section 2534 of title 10, United States Code, is amended
by adding at the end the following:
    "(g) INAPPLICABILITY TO CONTRACTS UNDER SIMPLIFIED ACQUISI-
TION 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: ^i use 252a.
    "(b) INAPPLICABLE LAWS.—NO law properly hsted in the Federal
Acquisition Regulation pursuant to section 33 of the Office of Fed-
eral 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 SUBCONTRAC-
TOR 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 Prop-
erty 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 th£in the simplified acquisition threshold.".
    (d) AUTHORITY T O EXAMINE BOOKS AND RECORDS OF CONTRAC-
TORS.—Section 304C of the Federal Property and Administrative
Services Act of 1949, as added by section 2251(a), is amended 4iusC254d.
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 KICK-
BACKS.—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 Grovemment 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:
108 STAT. 3342             PUBLIC LAW 103-355—OCT. 13, 1994

40USC270d-i.        "SEC. 5. This Act does not apply to a contract in an amount
               that is not greater than $100,000.".
40 use 270a.         (B) Subsection (a) of the first section of such Act is amended
               by striking out", exceeding $25,000 in amount,".
^IH^^^^^           ,(2)(A) The Federal Acquisition Regulation shall provide alter-
note.          natives to pa3nnent 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 subpara-
                    graph (A), one or more pajnnent 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 amoimt 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 agencj^ 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) SouD WASTE DISPOSAL ACT.—Paragraph (3) of section
               6002(c) of the SoHd 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) appUes 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:
                PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3343
"SEC. 31. SIMPLIFIED ACQUISITION PROCEDURES.                                  41 USC 427.
     "(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 pur-
chase 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 proce-
dures required by subsection (a).
     "(c) PROMOTION OF COMPETITION REQUIRED.—In using sim-
plified acquisition procedures, the head of an executive agency
shall promote competition to the maximum extent practicable.
     "(d) CONSIDERATION OF OFFERS TIMELY RECEIVED.—The sim-
plified 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 U S E OF SIMPLIFIED ACQUISITION PROCE-
DURES.—
        "(1) EFFECT OF INTERIM FACNET C LABILITY.—The sim-
    plified acquisition procedures provided in the Federal Acquisi-
    tion 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 pursu-
    ant to section 30A(a)(l) that the procuring activity has imple-
    mented an interim FACNET capabiUty.
         "(2)   EFFECT OF FULL FACNET CAPABILITY.—(A)(i) In           the
    case of a procuring activity described in clause (ii), the sim-
    plified acquisition procedures provided in the Federal Acquisi-
    tion Regulation pursuant to this section mav 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)(l),
          that it has implemented interim FACNET capability; and
                "(II) that is in an agency that has excluded the procur-
          ing 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 afl;er December 31, 1999, for contracts
    in amounts greater than $50,000 and not greater than the
    simplified acquisition threshold until a certification has been I
    made pursuant to section 30A(a)(2) that the agency has imple-
    mented a full FACNET capabiHty.
    "(f) INTERIM REPORTING RULE.—Until October 1, 1999, procur-
ing activities shall continue to report under section 19(d) procure-
ment 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.".
108 STAT. 3344            PUBLIC LAW 103-355—OCT. 13, 1994

                 (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 ofTer 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.—Sub-
            section (a) of section 18 of the Office of Federal Procurement PoUcy
            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 Ueu thereof
                 "$25,000"; and
                      (2) in paragraph (3)(B), by inserting after "(B)" the follow-
                 ing: "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 N O T 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), respec-
                tively; and
                     (2) by inserting before subparagraph (C), as so redesig-
                nated, 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)(l) 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
              PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3345

    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.—Sub-
    section (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 pur-
         chase threshold each place it appears and inserting in
         lieu thereof "$25,000"; and
              (B) in paragraph (3)(B), by inserting afl^r "(B)" the
         following: "in the case of a contract or order estimated
         to be greater than the simpUfied 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 (gXl) 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 redesig-
        nated, 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)(l) of the Office of Federal Procure-
    ment Pohcy Act or with fiiU FACNET capability certified pursu-
    ant 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 FACJNET capability certified pursuant to section
    30A(a)(2) of the Office of Federal Procurement Pohcy 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 PROCE-
             DURES.
    (a) IMPLEMENTATION nsr 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:
108 STAT. 3346                   PUBLIC LAW 103-355—OCT. 13, 1994

                 **§ 2302b. Implementation of simplified acquisition proce-
                               dures
                      "The simplified acquisition procedures contained in the Federal
                 Acquisition Regulation pursuant to section 31 of the Office of Fed-
                 eral 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 amend-
                 ed by inserting after section 302A, as added by section 4003 and
                 amended by section 4103, the following new section:
41 u s e 252b.   "SEC. 302B. IMPLEMENTATION OF SIMPLIFIED ACQUISITION PROCE-
                              DURES.
                     'The simplified acquisition procedures contained in the Federal
                 Acquisition Regulation pursuant to section 31 of the Office of Fed-
                 eral Procurement PoHcy 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:
41 u s e 428.    «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 StreamUning
                 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
                 tne micro-purchase thresnold.
                      "(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
              PUBLIC LAW 103-355—OCT. 13,1994                        108 STAT. 3347
          "(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 pur-
chase 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 imder
any contract the award value of which is less than or equal to
the micro-purchase threshold under section 32 of the Omce of
Federal Procurement Policy Act.".
     (c) EFFECTIVE DATE.—^Notwithstanding any other provision of 41 use lOa note.
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
     simphned ac(][uisition 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 jprocedures" and inserting in
     lieu thereof "simplified procedures .
     (b) SOLICITATION CONTENT REQUIREMENT.—Section 2305(a)(2)
of such title is amended by striking out "smsQl purchases)" in
108 STAT. 3348               PUBLIC LAW 103-355—OCT. 13, 1994
                the matter preceding subparagraph (A) and inserting in lieu thereof
                "a purchase for an amount not greater than the simplified acquisi-
                tion threshold)".
                     (c) COST TYPE CONTRACTS.—Section 2306(e)(2)(A) of such title
                is amended by striking out "smgdl 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 Ueu
                thereof "simplified acquisition threshold".
                    (e) CROSS REFERENCE AMENDMENT.—Section 9005 of PubUc
10 u s e 2241   Law 102-396 (10 U.S.C. 2441 note) is amended in the first sentence
note.           by striking out "small purchases covered by section 2304(g)" and
                inserting in Ueu 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 prop-
                         erty and services for amoimts not greater than the sim-
                         plified 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:
Regulations.        "(2)(A) The Administrator of General Services shall prescribe
                regulations that provide special simplified procedures for acquisi-
                tions 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 Ueu 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 proce-
                     dures" 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)".
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3349

    (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 Ueu thereof "either the simplified acquisition threshold".
SEC. 4403. OFFICE OF FEDERAL PROCUREMENT POUCY ACT.
    Section 19(a) of the Office of Federal Procurement PoUcy 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. SIVIALL 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 thresh-
old'" and inserting in lieu thereof "'simplified acquisition thresh-
old'".
    (b) U S E 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. SOOl. PERFORMANCE BASED MANAGEMENT.
    (a) POLICY AND (JOALS 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:
'^§2220. Performance based management: acquisition pro-
            grams
    "(a) ESTABLISHMENT OF GOALS.—(1) The Secretary of Defense
shall approve or define the cost, performance, and schedule goals
for m£gor defense acquisition programs of the Department of
Defense and for each phase of the acquisition cycle of such pro-
grams.
    "(2) The Comptroller of the Department of Defense shall evalu-
ate 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 nonmsgor 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 IDepartment of
Defense are not achieving, on average, 90 percent of cost, perform-
108 STAT. 3350               PUBLIC LAW 103-355—OCT. 13, 1994
              ance, 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 continmng need for pro-
                   grams that are significantly behind schedule, over budget, or
                   not in compliEuice with performance or capability requirements;
                   and
                       "(2) identify suitable actions to be taken, including termi-
                   nation, 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.".
10 use 2220       (b) ENHANCED SYSTEM OF PERFORMANCE INCENTIVES.—Within
"o*®-         one year after the date of the enactment of this Act, the Secretary
              of Defense shall review the incentives and personnel actions avail-
              able 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 maxi-
              mum 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).
10 use 2220       (c) RECOMMENDED LEGISLATION.—Not later than one year after
note.         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.
10 use 2435       (a) REVIEW.—^The Secretary of Defense shall review the regula-
note.         tions of the Department of Defense to ensure that acquisition pro-
              gram 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 (5ode.
10 use 2430       (b) REPEALS.—Sections 835 and 836 of the National Defense
note.         Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107
              Stat. 1717) are hereby repealed.
             PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3351
  Subtitle B—Civilian Agency Acquisitions
SEC. 6051. 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 PRO- 41 USC 268.
              GRAMS.
     "(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 m£gor 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 pro-
     grams that are significantly behind schedule, over budget, or
     not in compUance with performance or capability requirements;
     and
          "(2) identify suitable actions to be taken, including termi-
     nation, with respect to such programs.".
     (b) ANNUAL REPORTING REQUIREMENT.—Section 6 of the OflBce
of Federal Procurement PoUcy 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 Adminis-
trator shall use data fi*om existing management systems in making
the assessment.".
     (c) ENHANCED SYSTEM OF PERFORMANCE INCENTIVES.—Within 4i use 263 note,
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 (jovemment, shall, to the maximum extent
consistent with applicable law—
          (1) establish poUcies 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 des-
     ignated acquisition positions; and
          (2) review the incentives and personnel actions available
     to the heads of departments and agencies of the Federsd
     Ciovemment for encouraging excellence in the acquisition
     workforce of the Federal Government and provide an enhanced
108 STAT. 3352                PUBLIC LAW 103-355—OCT. 13, 1994
                      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 perform-
                           ance goals.
41 use 263 note.      (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 sec-
                 tion 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 pro-
                 grams and the acquisition workforce of the Federal Government
                 on the basis of performance.
41 u s e 405 note. SEC. 5052. RESULTS-ORIENTED ACQUISITION PROCESS.
                    (a) DEVELOPMENT OF PROCESS REQUIRED.—The Administrator
                for Federal Procurement PoUcy, 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 commercisJ 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
41 u s e 413 note. 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 procure-
                ment 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 sub-
                section, and not more than 1 such test shall be conducted under
                such authority in gin 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
            PUBLIC LAW 103-355—OCT. 13, 1994                         108 STAT. 3353

responsible for the conduct and evaluation of tests within that
agency.
     (c) TEST REQUIREMENTS AND LIMITATIONS.—(1) Each test con-
ducted 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') capabiUty required by
section 30 of the Office of Federal Procurement Policy Act (as
added by section 9001) for procurement actions in amcunts greater
than the simpUfied acquisition threshold.
    (d) LIMITATION ON TOTAL VALUE OF CONTRACTS UNDER PRO-
GRAM.—(1) The Administrator shall ensure that the total amount
obUgated under contracts awarded pursuant to the program imder
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 sec-
tion may include any of the following procedures:
          (1) Publication of agency needs before drafting of a solicita-
     tion.
          (2) Issuance of draft solicitations for comment.
          (3) StreamUned solicitations that specify as the evaluation
     factors the minimum factors necessary, require sources to sub-
     mit 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 quali-
     fied people over a period not greater than 30 days.
108 STAT. 3354           PUBLIC LAW 103-355—OCT. 13, 1994

                      (6) Restriction of competitions to sources determined
                 capable in a precompetition screening process, provided that
                 the screening process affords all interested sources a fair oppor-
                 tunity 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 t h a t ^
                                 (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 informa-
                            tion or samples showing the suitability of its product
                            for meeting those needs, together with a price quota-
                            tion, or, if appropriate, showing the source's technical
                            capability, past performance, product supportabiUty,
                            or other qualifications (including, as appropriate,
                            information regarding rates and other cost-related fac-
                            tors);
                            (B) contracting officials develop a request for proposals
                      (including appropriate specifications and evaluation cri-
                      teria) 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 competi-
                      tion that is limited to all sources that timely provided
                      product information in response to the notice or, if appro-
                      priate, 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 T E S T 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) T E S T PLAN.—^At least 270 days before a test may be con-
            ducted under this section, the Administrator shall—
                      (1) provide a detailed test plan, including lists of any r e f -
                 lations 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 authoriza-.
                 tion and appropriations committees of the House of Representa-
                 tives 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 imder subsection (a), the Administrator may
            waive—
                     (A) any provision of the Federal Acquisition Regulation
                that is not required by statute; and
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3355

           (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 sub-
section (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 fiill
FACNET capabiUty.
     (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 meikes
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).
108 STAT. 3356                PUBLIC LAW 103-355—OCT. 13, 1994
42 u s e 2473    SEC. 5062. NASA MID-RANGE PROCUREMENT TEST PROGRAM.
note.
                      (a) I N GENERAL.—^The Administrator of the National Aero-
                 nautics 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 sub-
                 section (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 obUgation of funds
                 for the test conducted pursuant to subsection (a).
49 u s e 40110   SEC. 5063. F E D E R A L AVIATION ADMINISTRATION ACQUISITION PILOT
note.                           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 memager and the end user executive
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3357

responsible for the requirement for the equipment acquired. Such
poHcies 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 acquisi-
tion management costs.
     (3) The Secretary of Transportation shall estabUsh 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 meas-
     uring the success of the program; and
          (B) reduce data requirements from the current program
     review reporting requirements.
     (c) SPECIAL AUTHORITIES.—^The authority provided by sub-
section (a) shall include authority for the Secretary of
Transportation—
          (1) to apply any amendment or repeal of a provision of
     law made in tins 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 commer-
     ci£j items under such program—
               (A) any authority provided in this Act (or in an amend-
          ment made by a provision of this Act) to wcdve a provision
          of law in the case of commercial items, and
               (B) any exception appUcable 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 oppor-
     tunity 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—
108 STAT. 3358          PUBLIC LAW 103-355—OCT. 13, 1994
                                  (i) contains a S3niopsis 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 informa-
                           tion or samples showing the suitability of its product
                           for meeting those needs, together with a price quota-
                           tion, 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 fac-
                           tors);
                           (B) contracting officials develop a request for proposals
                    ( i n d u i n g appropriate specifications and evaluation cri-
                    teria) 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 competi-
                    tion that is limited to all sources that timely provided
                    product information in response to the notice or, if appro-
                    priate, to those sources determined most capable based
                    on the qualification-based factors included in an invitation
                    to submit information pursuant to subparagraph (A).
                 if) 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.
              PUBLIC LAW 103-355—OCT. 13, 1994                    108 STAT. 3359

     (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. 10 USC 2430
     (a) I N GENERAL.—^The Secretary of Defense is authorized to
designate the following defense acquisition programs for participa-
tion 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
    nardware, software, and subsystems) to perform collective train-
    ing of field artillery gunnery team components, with develop-
    ment of software as required to generate the training exercises
    and component interfaces.
        (2) JOINT DIRECT ATTACK MUNITION (JDAM I).—The J o i n t
    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 accuraQr
    of 1000-pound and 2000-pound bombs in inventory.
        (3) JOINT PRIMARY AIRCRAFT TRAINING SYSTEM (JPATS).—
    The Joint Primary Aircrsift 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 Manage-
    ment 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 "commer-
        cial-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 customar-
             ily 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 market-
             place or that has been ofiTered for sale or lease for
             use in the commercial marketplace.
                  (ii) Any aircraft that, but for modifications of a
             t3rpe customarily available in the commercial market-
             place, or minor modifications made to meet Federal
             Grovemment reqmrements, 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 -
108 STAT. 3360               PUBLIC LAW 103-355—OCT. 13, 1994

                             17 or any aircraft derived from the C-17, shall be
                             considered a commercial-derivative aircraft.
                        (5) COMMERCIAL-DERIVATIVE ENGINE (CDE).—The commer-
                 '   cial derivative engine p r o - a m with respect to all contracts
                     directly related to the acquisition of (A) commercial derivative
                     engines (including spare engines and upgrades), logistics sup-
                     port equipment, technical orders, management data, and spare
                     parts, and (B) commercially derived engines for use in support-
                     ing 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 warn-
                     ing 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 conmiercial-deriva-
                     tive engine.
                     (b) PILOT PROGRAM IMPLEMENTATION.—(1) The text of section
                833 of the National Defense Authorization Act for Fiscal Year
10 use 2430      1994 (Public Law 103-160; 107 Stat. 1716) is amended to read
"<**«•          as follows:
                     "(a) MISSION-ORIENTED PROGRAM MANAGEMENT.—In the exer-
                cise 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 Pro-
                gram to utiUze the concept of mission-oriented program manage-
                ment.
                     "(b) POLICIES AND PROCEDURES.—In the case of each defense
                acquisition program covered by the Defense Acquisition Pilot Pro-
              . gram, the Secretary of Defense should prescribe policies and proce-
                dures for the interaction of the program manager and the com-
             . mander of the operational command (or a representative) respon-
                sible 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 accept-
                ance testing.".
                     (2) The text of section 837 of the National Defense Authorization
10 use 2430      Act for Fiscal Year 1994 (PubHc 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
                mclude, in the Secretary s discretion, developing methods to stream-
                Une the procurement process, streamlining the period for entering
                into contracts, and defining alternative techniques to reduce reH-
                ance on military specifications and standards, in contracts for the
                defense acquisition programs participating in the Defense Acquisi-
                tion Pilot Program.".
                     (3) The text of section 838 of the National Defense Authorization
10 use 2430     Act for Fiscal Year 1994 (PubHc Law 103-160; 107 Stet. 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 mile-
                stones on the basis of quantitative measures of results.".
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3361

     (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 ofiicials with reports on
the minimum necessary data items required to ensure the appro-
priate 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 meas-
     uring the success of the program; and
          (B) reduce data requirements from the current program
     review reporting requirements.
     (c) SPECIAL AUTHORITY.—^The authority delegated imder sub-
section (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 commer-
     cial items under such programs—
               (A) any authority provided in this Act (or in an amend-
          ment made by a provision of this Act) to waive a provision
          of law in the case of conmiercial 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) apphes 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 acquisi-
tion pilot program under the authority of subsection (a).

              Subtitle D—^Miscellaneous
SEC. 6091. 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 tne end the following new paragraphs:
        "(8) providing for a Government-wide award to recognize
    and promote vendor excellence;
108 STAT. 3362                    PUBLIC LAW 103-355—OCT. 13,1994
                             "(9) providing for a Grovemment-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 PoUcy Act (41 U.S.C. 418b) is amended—
                              (1) by striking out "30 days" and inserting in Ueu 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 publica-
                         tion date when there are compelling circumstances for the
                         earUer 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, smd compli-
                               ance with, laws and regulations;
                                    (B) avoiding Utigation; and
                                    (C) achieving more productive and equitable relation-
                               ships between the Federal CJovemment and the regulated
                               segments of the private sector.
                               (2) The use of negotiated rulemaking or similar techni(][ue8
                          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 Confess that,
                     in prescribing acquisition regulations, the Federal Acquisition Regu-
                     latory Council should consider using negotiated rulemaking proce-
                     dures 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. 600L 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.
18 u s e 281 note.       (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 punish-
                     able under such section that existed during such period.
             PUBLIC LAW 103-355—OCT. 13, 1994                108 STAT. 3363
SEC.    6002. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL
               PERSONNEL.
    (a) AMENDMENT OF O F P P ACT.—The Office of Federal Procure-
ment 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 41USC 419.
           PERSONNEL.
       "(a) LIMITATION ON PAYMENT FOR ADVISORY AND ASSISTANCE
SERVICES.—(1) No person who is not a person described in sub-
section (b) may be paid by an executive agency for services to
conduct evaluations or analyses of any aspect of a proposal submit-
ted for an acquisition unless personnel described in subsection
(b) with adequate training and capabilities to perform such evalua-
tions and analyses are not readily available within the agency
or another Federal agency, as determined in accordance with stand-
ards and procedures prescribed in the Federal Acquisition Regula-
tion.
     "(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 sub-
     section (b) within the agency or another Federal agency are
     readily available to perform a particular eveduation 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 Fed- 4i use 4i9 note,
eral 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 Regula-
     tions 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 acquisi-
          tions.
108 STAT. 3364           PUBLIC LAW 103-355—OCT. 13, 1994
            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 hall 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 ADMINISTRA-
                         TION.
                 (a) WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR EMPLOY-
            EES.—{Section 2409 of title 10, United States Code, is amended
            to read as follows:
            **§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 CJeneral determines that the
            complaint is frivolous, the Inspector General shall investigate the
            complaint and, upon completion of such investigation, submit a
            report c f the findings of the investigation to the person, the contrac-
            tor concorned, 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 reprissd 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 complaineint an amount
                 equal to the aggregate amount of all costs and expenses (includ-
                 ing attorneys' fees and expert witnesses' fees) that were reason-
                 ably 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
            PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3365

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 reUef, 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 con-
    tract with an agency.
         "(5) The term 'Inspector General' means an Inspector Gen-
    eral appointed under the Inspector Greneral Act of 1978.".
    (b) RELATED L A W . ^ 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 41 USC 265.
               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 informa-
tion 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 inves-
tigate the complsdnt 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.
108 STAT. 3366           PUBLIC LAW 103-355—OCT. 13, 1994

            the duties of the inspector general under this section shall he
            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 (includ-
                ing attorneys' fees and expert witnesses' fees) that were reason-
                ably incurred by the complsdnant 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 foimd to have occurred.
            In any action brought under this paragraph, the court may grant
            appropriate relief, including injimctive 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 ordei^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 con-
                 tract with an executive agency.
                      "(3) The term 'Inspector General' means an Inspector Gren-
                 eral 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 serv-
                ices being provided to Inspectors (Jeneral appointed under the
                Inspector (jeneral Act of 1978; and
                     (2) submit to Congress a report on the results of the review.
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3367
     (b) MATTERS REQUIRED FOR REPORT.—The report shall include
the following matters:
          (1) With respect to each department or agency of the Fed-
     eral (Government that has an inspector Greneral appointed in
     accordance with the Inspector Greneral 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 assess-
     ment of the extent of the independence of the legal advisers
     providing advice to the Inspector Greneral.
          (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 Greneral whose source of legal
     advice is legal coimsel accountable solely to the Inspector Gren-
     eral.
SEC. 6008. COST SAVINGS FOR OFFICIAL TRAVEL.                              5 USC 5702 note.
     (a) GUIDELINES.—^The Administrator of the Greneral Services
Administration shall issue guidelines to ensure that agencies pro-
mote, encourage, and facilitate the use of frequent traveler programs
offered by airlines, hotels, and car rented vendors by Federsd employ-
ees who engage in official air travel, for the purpose of reaUzing
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.                    5 USC app. 5
     Federal agencies shall resolve or take corrective action on all
Office of Inspector Greneral 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 tne report
by the Federal Grovemment.

     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-^84 (106 Stat. 2447; 10 U.S.C. 2305 note) is repealed.
SEC. 7102. CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS 15 USC 644 note.
             CONCERNS.
    (a) PROCUREMENT PROCEDURES AUTHORIZED.—(1) To faciHtate
the attainment of a goal for the participation of small business
concerns owned and controlled by socially and economically dis-
advantaged individu£ds that is established for a Federal agency
108 STAT. 3368           PUBLIC LAW 103-355—OCT. 13, 1994

             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 Adminis-
             tration.
               (b) IMPLEMENTATION        THROUGH     THE FEDERAL      ACQUISITION
            REGULATION.—
                     (1) IN GENERAL.—^The Federal Acquisition Regulation shall
                be revised to provide for uniform implementation of the author-
                ity provided in subsection (a).
                     (2) MATTERS TO BE ADDRESSED.—The revisions of the Fed-
                eral Acquisition Regulation made pursuant to paragraph (1)
                shall include—
                          (A) conditions for the use of advance pajnnents;
                          (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 busi-
                     ness concerns owned and controlled by socially and
                     economically disadvantaged individuals without effectively
                     eliminating any participation of other small business con-
                     cerns; and
                          (D)(i) procedures for a person to request the head of
                     a Federal agency to determine whether the use of competi-
                     tions restricted to small business concerns owned and con-
                     trolled by socially and economically disadvantaged individ-
                     uals 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 estab-
                     lished 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.
            SBC. 7103. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COM-
                         PREHENSIVE 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
             PUBLIC LAW 103-355—OCT. 13, 1994                     108 STAT. 3369

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.                 15 USC 644 note.
     (a) ESTABLISHMENT.—^There is hereby estabUshed an inter-
agency 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 regula-
     tions affecting the smedl business community; and
          (2) to submit comments reflecting such positions to appro-
     priate regulatory authorities.
     (c) MEMBERSHIP.—^The Council shall be composed of the follow-
ing members:
          (1) The Administrator of the Small Business Administra-
     tion (or the designee of the Administrator).
          (2) The Director of the Minority Business Development
     Agency.
          (3) The head of each Office of Smedl 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 Adminis-
trator of the Small Business Administration.
     (e) MEETINGS.—^The Council shall meet at the call of the chair-
man as necessary to consider proposed procurement regulations
affecting the small business community.
    (f)   CONSIDERATION   OF COUNCIL     COMMENTS.—The       Federal
Acquisition Regulatory Coimcil and other appropriate regulatory
authorities shall consider comments submitted in a timely manner
pursuant to subsection (bX2).
SEC. 7106. 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:
^§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 combiiaed amount obligated for contracts and
subcontracts entered into ^ivith—
         "(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 1966 (20 U.S.C. 1135d-^(3)),
108 STAT. 3370           PUBLIC LAW 103-355—OCT. 13, 1994

                   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)(l)).
                   "(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 Pohcy Act (41 U.S.C.
             421(c)) shall provide procedures or guideUnes 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, devel-
                  opment, test, and evaluation.
                        "(C) Funds obligated for contracts entered into with the
                  Department of Defense for such fiscal year for military construc-
                  tion.
                        "(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 imiversities and minority
             institutions, shall also provide infirastructure 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
               PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3371

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 univer-
sities 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 imiversities 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 establish-
     ment of cooperative work-education programs in scientific dis-
     ciplines critical to the national security functions of the Depart-
     ment of Defense.
          "(E) Attract and retain faculty involved in scientific dis-
     ciplines critical to the national security functions of the Depart-
     ment 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 fimctions 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, univer-
sities, 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 deter-
     mines 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 increas-
         ing awards of agency contracts to entities described in
         subsection (a)(1);
              "(ii) exercise his utmost authority, resourcefulness, £uid
         dihgence;
              "(iii) in the case of the Department of Defense, actively
         monitor and assess the progress of the military depart-




  79-194 O—95—24 : QL 3 Part 4
108 STAT. 3372           PUBLIC LAW 103-355—OCT. 13, 1994

                      ments, 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 faciU-
                 tate 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 pajrments to entities
                 described in subsection (a)(1) under such section.
                      "(3) To the extent practicable and when necessary to facili-
                 tate 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
                   artial set asides for entities described in subsection (a)(1),
                 E ut shall pay a price not exceeding fair market cost by more
                 than 10 percent in pajonent 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 con-
                 cerns 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 enti-
                      ties 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 dominatejj.
                            "(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 estab-
                            lished luider 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
               PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3373

           in subsection (a)(1), a requirement that (to the maximum
           extent practicable) the procurement be designated as such
           a set-aside before the soUcitation for the procurement is
           issued.
                "(E) Policies and procedures which, to the maximum
           extent practicable, will ensure that ciurent levels in the
           number or dollar value of contracts awarded under the
           program established under section 8(a) of the Small Busi-
           ness 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 abihty 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)(l) of the Small Business Act (15 U.S.C. 644(o)(l)).
     "(g) INDUSTRY CATEGORIES.—(1) To the maximum extent prac-
ticable, 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 atteiin the goal estab-
     lished 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 Umit the contracting
activity's use of set asides in awarding contracts in that particular
industry category.
     "(h) CoMPLL\NCE W I T H SUBCONTRACTING PLAN REQUIRE-
MENTS.—(1) The Federal Acquisition Regulation shall contain regu-
lations to ensure that potential contractors submitting sealed bids
108 STAT. 3374           PUBLIC LAW 103-355—OCT. 13, 1994

            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 sub-
            contracting plan under section 8(d) of the Small Business Act (15
            U.S.C. 637(a)), the subcontracting plan shall be a factor in evaluat-
            ing 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 gosd of subsection
            (a) duringthe 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 individ-
                 uals 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 sub-
                 section (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 liead of an agency* means the Secretary
                of Defense, the Secretary of Transportation, and the Adminis-
                trator of the National Aeronautics and Space Administration,
                "(k) EFFECTIVE DATE.—(1) This section applies in the Depart-
            ment 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 (gXl), the second sentence of
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3375

    subsection (g)(2), and paragraphs (1), (2)(A), (2)(D), and (2XE)
    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 Grovemment-wide goal for participa-
         tion 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 Heu thereof ", by small business concerns
         owned and controlled by socially and economically dis-
         advantaged 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 dis-
         advantaged individuals" the following: "and participation
         by smaU 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 subpara-
    grapns (A), (C), and (F) of paragraph (6), and in paragraph
    (10)(B) and inserting in Heu thereof ", small business concerns
    owned and controlled by socially and economically disadvan-
    taged individusds, and small business concerns owned and con-
    trolled 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 smedl business concern, a small business concern
    owned and controlled by socially and economically disadvan-
    taged individuals, or a small business concern owned and con-
    trolled 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 pubUcly 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
108 STAT. 3376                    PUBLIC LAW 103-355—OCT. 13, 1994

                               (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 amend-
                     ed 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.".
41 u s e 405 note.   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 defini-
                     tional purposes) the small business concerns set forth in paragraph
                     (2) for purposes of authorizing the participation of such small busi-
                     ness concerns as prime contractors or subcontractors in—
                               (A) contracts awarded directly by the Federal (xovemment
                          or subcontracts awarded under such contracts; or
                               (B) contracts and subcontracts funded, in whole or in part,
                          by Federal financial assistance under grants, cooperative agree-
                          ments, 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 smsJl business concerns.
                          (b) MATTERS T O B E 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—
            PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3377

              (A) determinations of whether a small business concern
         qualifies as a small business concern referred to in sub-
         section (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 con-
         cern qualifies as a small business concern referred to in
         subsection (a)(2) for such purposes; and
         (3) such other related recommendations as the Adminis-
    trator 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 represent-
atives 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 canying 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 (4?);
          (C) soUcits 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).
108 STAT. 3378             PUBLIC LAW 103-355—OCT. 13, 1994
              SEC. 7108. FUNCTIONS OF OFFICE OF FEDERAL PROCUREMENT POL-
                           ICY RELATING TO SMALX. 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 Adminis-
                   trator of the Small Business Administration, that ensure that
                   small businesses, small businesses owned £uid 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 sim-
                   plified 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 disadvan-
                   taged 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) bv adding at the end the following new subparagraph:
                              (C) establish policies and procedures for the establish-
                        ment and implementation of education and training pro-
                        grams authorized by this Act, including the estabUshment
                        and implementation of training, in conjunction with the
                        (jeneral Services Administration, for critical procurement
                          ersonnel designed to increase the participation of small
                       E  usiness concerns owned and controlled by socially and
                        economically disadvantaged individuals, women, and other
                        minorities in procurement activities conducted by an execu-
                        tive 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—
41 use 35.               (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;
41 use 43a.              (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, 'manu-
                   facturer',"; and
                         (4) by adding at the end the following new sections:
41 use 43b.        "SEC. 11. (a) The Secretary of Labor may prescribe in regula-
              tions the standards for determining whether a contractor is a manu-
              facturer 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 instrumentaUty of the United
              States, or by the District of (Columbia, or by any corporation all
               PUBLIC LAW 103-355—OCT. 13, 1994                               108 STAT. 3379

the stock of which is beneficially owned by the United States,
for the manufacture or furnishing of materials, suppUes, 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 denned pursuant to sub-
section (a).".
SEC. 7202. PROHTOinON ON USE OF FUNDS FOR DOCUMENTING ECO-
             NOMIC OR EMPLOYMENT IMPACT OF CERTAIN ACQUISI-
             TION 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:
"§2247. Prohibition on use of funds for documenting eco-
             nomic or emplojonent impact of certain acquisi-
             tion 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 emplojonent 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)(l) It is the policy of Congress that an agency named in
section 2303(a) of tms title should not be required by legislation
to award a new contract to a specific non-Federal Grovemment
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
luiless the work provided for in the contract is a continuation
108 STAT. 3380           PUBLIC LAW 103-355—OCT. 13, 1994

            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 Acaaemy of Sciences to investigate,
            examine, or experiment upon any subject of science or art of signifi-
            cance 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 Grovemment.".
                 (2) Chapter 139 of title 10, United States Code, is £unended
            by adding at the end the following new section:
            **§ 2374. Merit-based award of grants for research and devel-
                           opment
                 "(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-FedergJ 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 poUcy
                 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 Acaaemy of Sciences to investigate,
            examine, or experiment upon any subject of science or art of signifi-
            cance 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 Grovemment.".
                 (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),"afl«r"(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 Grovemment 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 Cxovernment
            entity unless that provision of law—
                      "(A) specifically refers to this subsection;
                      "(B) specifically identifies the particular non-Federal
                 Grovemment entity involved; and
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3381

          "(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 signifi-
cance to an executive agency and to report on such matters to
the Congress or any agency of the Federed 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 41 USC 266.
            DEVELOPMENT
    "(a) POLICY.—It is the policy of Congress that £in 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 Grovemment 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) N E W 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
luider 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 Grovemment.".
SEC 7204. MAXIMUM PRACTICABLE OPPORTUNITIES FOR APPREN-
           TICES 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 emplo5nnent of apprentices who are participat-
    ing in or who have completed such apprenticeship programs.
108 STAT. 3382                  PUBLIC LAW 103-355—OCT. 13, 1994

                   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. lOb-l(g)) by striking out paragraphs (2XC) and
                   (3).
                        (b) REPEAL OF REPORTING REQUIREMENT.—Section 9096(b) of
41 u s e lOb-2     Public Law 102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) is repealed.
note.                   (c) REPEAL OF STUDIES OF WAIVERS.—Section 306 of the Trade
                   Agreements Act of 1979 (19 U.S.C. 2516) is repealed.
Community
Improvement        Subtitle C—^Waiver of Application of Pre-
Volunteer Act of
1994.               vailing Wage-Setting Requirements to
                    Volunteers
40 u s e 276d      SEC. 7301. SHORT TITLE.
note.
                       This subtitle may be cited as the 'Commimity Improvement
                   Volunteer Act of 1994*.
40 u s e 276d.     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.
40 u s e 276d-l.   SEC. 7303. WAIVER FOR INDIVIDUALS WHO PERFORM VOLUNTEER
                               SERVICES FOR PUBUC ENTITIES.
                       (a) I N 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 individu£d—
                            (1) who volunteers—
                                 (A) to perform a service directly to a State or local
                            government or a pubUc 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 fi*eely 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 seek-
                       ing to perform work on the same project for which the individual
                       is volunteering;
              PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3383

          (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 volunteer-
    ing; 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 volimteers described in subsection
(a) only in accordance with regulations issued by the Secretarj*^
of Labor. In prescribing the regulations, the Secretary shall take
into consideration criteria such as the total amoiint 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 volun-
    teer 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 Hability, health,
    fife, 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
reaUties 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                    40 USC 276d-2.
            SERVICES FOR NONPROFIT ENTITIES.
     The requirement that certain laborers and mechanics be paid
in accordgince with the wage-setting provisions of the Act of March
3, 1931 (commonly known as the 'l)avis-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 assistsuice for civic, chari-
          table, or humanitarian reasons, without promise, expecta-
          tion, 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 seek-
     ing to perform work on the same project for which the individual
     is volunteering;
108 STAT. 3384                PUBLIC LAW 103-355—OCT. 13, 1994
                          (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 volunteer-
                     ing; and
                          (4) who is not otherwise employed by the recipient of Fed-
                     eral assistance to perform the same type of services as those
                     for which the individual proposes to volunteer.
40 use 276d-3.   SEC. 7305. CONTAACTS 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 Heedth 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.).
40USC276d        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
                          pubhc 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 Procure-
                 ment Policy Act (41 U.S.C. 403) is amended by adding at the
                 end the following new paragraphs:
           PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3385

       "(12) The term 'commercial item' means any of the follow-
ing:
          "(A) Any item, other than real property, that is of
     a type customarily used by the general public or by non-
     governmental entities for purposes other than govern-
     mental purposes, and that—
               "(i) has been sold, leased, or licensed to the general
          public; or
               "(ii) has been offered for sale, lease, or Ucense
          to the general public.
          "(B) Ajiy 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 Grovernment 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
          Grovernment requirements,
     would satisfy the criteria in subparagraph (A) or (B).
          "(D) Any combination of items meeting the require-
     ments 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 serv-
     ices 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 Grovernment with such services as the
          source uses for providing such services to the general
          public.
          "(F) Services offered and sold competitively, in substan-
     tial 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 subparagi'aphs (A) through (F) notwithstanding the
     fact that the item, combination of items, or service is trans-
     ferred 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 devel-
     oped 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.
108 STAT. 3386              PUBLIC LAW 103-355—OCT. 13, 1994

                            "(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 modifica-
                       tion 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 Grovemment as part of an end item or of another
                  component.
                       "(15) The term 'commercial component' means any compo-
                  nent that is a commercial item.".
                  (b) STYLISTIC AMENDMENTS.—Such section is                    fiirther
               amended—
                       (1) by striking out "Act—" in the matter preceding para-
                  graph (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.
41 u s e 264   SEC. 8002. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.
                    (a) IN GENERAL.—^The Federal Acquisition Regulation shall pro-
               vide regulations to implement paragraphs (12) through (15) of sec-
               tion 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 imder
               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 (xovemment 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
              PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3387

          (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, includ-
ing standards for determining the cases in which a waiver is appro-
priate.
    (5) For purposes of this subsection, the term "subcontract"
includes a transfer of commercial items between divisions, subsidi-
aries, or affiliates of a contractor or subcontractor.
    (c) MARKET ACCEPTANCE.—(1) The Federal Acquisition Regula-
tion shall provide that imder 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 soUcitation
     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 minimimi needs of the executive agency concerned;
     and
          (B) the entire relevant commercial market, including small
    businesses.
    (d)   U S E 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 t)rpe contracts.
     (e) CONTRACT QUALITY REQUIREMENTS.—The regulations pre-
scribed under subsection (a) shall include provisions that—
          (1) permit, to the msiximum extent practicable, a contractor
     under a commercial items acquisition to use the existing quality
     assurance system of the contractor as a substitute for compli-
     ance with an otherwise appUcable requirement for the Govern-
     ment to inspect or test the commercial items before the contrac-
     tor'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
108 STAT. 3388               PUBLIC LAW 103-355—OCT. 13, 1994
                         (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) NotwithstEuiding subsection (b), a contract of the Depart-
                ment 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 INAPPUCABLE 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:
41 u s e 430.   "SEC. 34. UST OF LAWS INAPPLICABLE TO PROCUREMENTS OF
                           COMMERCIAL ITEMS IN FEDERAL ACQUISITION REGULA-
                           TION.
                     "(a) LIST OF INAPPLICABLE PROVISIONS OF LAW.—(1) The Federal
                Acquisition Regulation shall include a Ust of provisions of law
                that are inappUcable to contracts for the procurement of commercial
                items. A provision of law that is properly included on the Ust
                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 Stream-
                lining 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 (jovemment
                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 commer-
                cial 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
                PUBLIC LAW 103-355—OCT. 13, 1994                                    108 STAT. 3389

a contract for the procurement of commercial items from the
appUcabiUty 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 resell-
ing 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 affiUates
of a contractor or subcontractor.
     "(c) COVERED LAW.—^A provision of law referred to in sub-
sections (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 provi-
sion 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 determina-
tion 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 Regu-
lation 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 4i use 430 note.
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. ESTABUSHMENT 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 commercitd items.".
    (b) CLERICAL AMENDMENT.—The tables of chapters at the begin-
ning 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. Proctirement of Commercial Items                                          2375".
108 STAT. 3390           PUBLIC LAW 103-355—OCT. 13, 1994

            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:
            **§ 2375. Relationship of commercial item provisions t o other
                          provisions of law
                 "(a) APPLICABILITY OF TITLE.—^Unless otherwise specifically pro-
            vided, nothing in this chapter shall be construed as providing that
            any other provision of this title relating to procurement is inappUca-
            ble to the procurement of commercial items.
               "(b) LIST OF LAWS INAPPLICABLE TO CONTRACTS FOR THE
            ACQUISITION OF COMMERCIAL ITEMS.—NO contract for the procure-
            ment 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 Procure-
            ment 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:
            ''§2376. Definitions
                 "In this chapter:
                      "(1) The terms 'commercial item', 'nondevelopmental item',
                 'component', and 'commercial component' have the meanings
                   rovided in section 4 of the Office of Federal Procurement
                 P olicy Act.
                      ' (2) The term 'head of an agencj^ means the Secretary
                 of Defense, the Secretary of Transportation, and the Adminis-
                 trator of the National Aeronautics and Space Administration.
                      "(3) The term 'agenc}^ means the Department of Defense,
                 the Coast Guard, and the National Aeronautics and Space
                 Administration.",
            SEC. 8104. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.
                 (a) I N 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:
            **§ 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 procure-
                 ment 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 agencjr's needs are not available, nondevelopmental items
                 other than commercial items, may be procured to fulfill such
                 requirements; and
              PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3391

          "(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 agen-
    c^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 agenc/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 acquisi-
    tion 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 require-
    ments 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 mini-
mum 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 tdtle is amended by striking out the item relating to section
2325.
108 STAT. 3392          PUBLIC LAW 103-355—OCT. 13, 1994
             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 D O D OFFI-
            CIALS.—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 Depart-
                    ment of Defense only commercial items (as defined in sec-
                    tion 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 SUB-
            CONTRACTOR 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 pursu-
            ant to subsection (a) if the agreement does not result in the United
            States being treated differently with regard to the restriction than
             PUBLIC LAW 103-355—OCT. 13, 1994                       108 STAT. 3393
any other prospective purchaser of such commercial items from
that subcontractor.
    "(2) In paragraph (1), the term 'commercial item' has the mean-
ing given such term in section 4(12) of the Office of Federal Procure-
ment 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 £ifl:er 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 PoUcy 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 lo use 2327
DEALINGS W I T H TERRORIST COUNTRIES.—Section 843(a) of PubUc "°**-
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 PoUcy Act (41 U.S.C.
403(12))).".
    (k) AMENDMENTS TO ARMED SERVICES PROVISION.—Section 806              lo u s e 2301
of the National Defense Authorization Act for Fiscal Years 1992 "°*®-
and 1993 (PubUc Law 102-190; 10 U.S.C. 2301 note) is amended
by striking out subsection (b) and inserting in heu thereof the
following:
     "(b) INAPPLICABILITY TO CERTAIN CONTRACTS.—Regulations pre-
scribed imder 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 EXCLU-
             SIVELY AT PRIVATE EXPENSE.
   (a) REGULATIONS REQUIRED TO INCLUDE PRESUMPTION OF
DEVELOPMENT A T 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); £uid
108 STAT. 3394                PUBLIC LAW 103-355—OCT. 13, 1994
                          (2) by inserting after subsection (e) the following new sub-
                     section:
                    "(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 assert;ed 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 justifica-
                 tion 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:
41 u s e 264.    "SEC. 314. RELATIONSHIP OF COMMERCIAL ITEM PROVISIONS TO
                              OTHER PROVISIONS OF LAW.
                     "(a) APPLICABILITY OF TITLE.—^Unless otherwise specifically pro-
                 vided, 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 procure-
                 ment 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 PoUcy 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:
41 u s e 264a.   «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 PoUcy 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:
             PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3395
*«£€. 314B. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS.               41 USC 264b.
    "(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 a r l stated in tenSs o f -
              "(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 pro-
    cured 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 imder the executive agency contracts to incorporate
    commercial items or nondevelopmental items other than
    commercial items as components of items supplied to the execu-
    tive 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 execu-
    tive agenc/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; £uid
         "(6) require training of appropriate personnel in the acquisi-
    tion 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 agenc3^s needs are not available, nondevelopmental
items other than commercied items available that—
         "(A) meet the executive agency's requirements;
108 STAT. 3396               PUBLIC LAW 103-355—OCT. 13, 1994

                       "(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 determina-
              tions required in paragraph (2).".
              SEC. 8204. INAPPLICABILnY OF CERTAIN PROVISIONS OF LAW.
                  (a) INAPPLICABILITY OF PROHIBITION ON LIMITING SUBCONTRAC-
              TOR 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 pursu-
              ant 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
              fi-om that subcontractor.".
                 (b) INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE
              REGARDING CONTINGENT FEES.—Section 304(a) of the Federal Prop-
              erty 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 commer-
              cial items".

                      Subtitle D—^Acquisitions Generally
              S E C . 8301. I N A P P L I C A B I L I T Y 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 require-
              ment 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 mean-
              ing given such term in section 4(12) of the Office of Federal Procure-
              ment 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:
40 use 334.        "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 require-
              ment in this title.
           PUBLIC LAW 103-355—OCT. 13, 1994                 108 STAT. 3397
     "(b) In subsection (a), the term 'commercial item' has the mean-
ing given such term in section 4(12) of the Office of Federal Procure-
ment 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 acquisi-
tion 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 PoUcy
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 trans-
fer of commercial items between divisions, subsidiaries, or affiliates
of a contractor or subcontractor.".
     (e) CERTIFICATION REQUIREMENTS.—Subsection (e)(1)(B) of sec-
tion 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 PubUc 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 42 USC 7606
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.
108 STAT. 3398                    PUBLIC LAW 103-355—OCT. 13, 1994

                          (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 mean-
                     ing given such term in section 4(12) of the Office of Federal Procure-
                     ment 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 amend-
                     ed by adding at the end the following new paragraph:
                          "(6) The Administrator shall prescribe regulations defining lim-
                     ited circumstances in which flexible deadlines can be used under
                     paragraph (3) for the submission of bids or proposals for the procure-
                     ment of commercial items.".
                     SEC. 8303. ADDITIONAL RESPONSmiUTIES FOR ADVOCATES FOR COM-
                                  PETITION.
                         (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,
                       romoting the acquisition of commercial items, and challenging
                     P arriers to such acquisition, including such barriers as unneces-
                     sarily restrictive statements of need, unnecessarily detailed speci-
                     fications, and unnecessarily burdensome contract clauses.".
                           (b) REPEAL OF SUPERSEDED PROVISION.—Section 28 of such
                     Act (41 U.S.C. 424) is repealed.
41 u s e 264 note.   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 DC 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).
41 u s e 264b        SEC. 8305. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERN-
note.                             MENT USE OF MARKET RESEARCH.
                         (a) REPORT REQUIRED.—Not later than 2 years after the date
                     of the enactment of this Act, the Comptroller Gfeneral 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.
                PUBLIC LAW 103-355—OCT. 13, 1994                        108 STAT. 3399
       (b) CONTENT OF REPORT.—The report shall include the follow-
ing:
           (1) A review of existing Federal (Jovernment 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 Grovemment 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 ARCHTTEC-
             T U R E A N D IMPLEMENTATION.
       (a) FEDERAL ACQUISITION       COMPUTER NETWORK         ARCHITEC-
TURE.—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:
•«EC. 30. FEDERAL ACQUISITION COMPUTER NETWORK (FACNET)                      41USC 426.
            ARCHITECTURE.
     **(a) IN GENERAL.—(1) The Administrator shall establish a pro-
gram for the development and implementation of a Federal acquisi-
tion 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 direc-
tion 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) Grovernment-wide FACNET capabihty (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 jjublic notice of contract awards (including
           price) through such system.
                "(D) In cases in which it is practicable, receive ques-
           tions regarding solicitations through such system.
                "(E) In cases in which it is practicable, issue orders
           to be made through such system.
108 STAT. 3400                  PUBLIC LAW 103-355—OCT. 13, 1994

                                  "(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 U S E R FUNCTIONS.—Allow private sec-
                        tor 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 execu-
                             tive agency.
                                  "(C) Respond to solicitations issued by the executive
                          t' 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 tne 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 contsdns 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 ofiierors a reason-
                   able 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
                    V with the Federal Grovernment 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.
41 u s e 426a.     "SEC. 30A. FEDERAL ACQUISITION COMPUTER NETWORK IMPLE-
                              MENTATION.
                       "(a) CERTIFICATION OF FACNET CAPABILITY IN PROCURING
                   ACTIVITIES AND AGENCIES.—(1) When the senior procurement execu-
                   tive of an executive agency or, in the case of the Department
              PUBLIC LAW 103-355—OCT. 13, 1994                          108 STAT. 3401
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 capabihty.
     "(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 capabil-
ity (as defined in subsection (d)), the head of the executive agency
shall certify to Congress that the executive agency has implemented
a full FACNET capabihty.
     "(3) The head of each executive agency shall provide for
implementation of both interim FACNET capabihty and fiill
FACNET capability, with priority on providing convenient and
universal user access as required by section 30(bX3)(C), in that
executive agency as soon as practicable sifter the date of the enact-
ment of the Federal Acquisition Streamlining Act of 1994.
     "(b) CERTIFICATION OF GOVERNMENT-WIDE FACNET CAPABIL-
ITY.—^When the Administrator for Federal Procurement Policy deter-
mines that the Federal Grovernment 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 Grovernment during the preceding fiscal year
through a system with full FACNET capability, the Administrator
shall certify to Congress that the Government has implemented
a Grovemment-wide FACNBiT capability.
     "(c) IMPLEMENTATION OF INTERIM FACNET CAPABILITY.—A
procuring activity shall be considered to have implemented an
interim FACNET capabihty if—
          "(1) with respect to each procurement expected to be in
     an amount greater than the micro-purchase threshold £ind 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 solicita-
     tions 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 ehgible if it is not in any class of contracts
108 STAT. 3402               PUBLIC LAW 103-355—OCT. 13, 1994
               determined by the Federal Acquisition Regulatory Council (pursu-
               ant 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 Fed-
               eral 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 sub-
                    section (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 SERV-
                            ICES.
                   (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:
               **% 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 Depart-
               ment 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 para-
               graph (1), the head of an agency shall consult with the Adminis-
               trator 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 responsibiUty for
               implementation of FACNET capability for that agency and other-
               wise 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 begin-
               ning of chapter 137 of such title is amended by inserting siter
               the item relating to section 2302b the following new item:
               "2302c. Implementation of FACNET capability.".
10 use 2302c        (c) EFFECTIVE DATE.—A FACNET capability may be imple-
^°^-           mented and used in an agency before the promulgation of regula-
               tions 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.
               PUBLIC LAW 103-355—OCT. 13, 1994                    108 STAT. 3403
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.                        41 USC 252c.
     "(a) IMPLEMENTATION OF FACNET CAPABILITY.—(1) The head
of each executive agency shall implement the Federal acquisition
computer network CFACNET) capability required by section 30
of the Office of Federal Procurement Policy Act.
     "(2) In implementing the FACNET capability pursuant to para-
graph (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 respon-
sibility 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 EUGIBLE AGENCY CONTRACTS.               41 USC 426a
   (a) REPORT ON CONTRACTS N O T SUITABLE FOR ACQUISITION "°*®"
THROUGH FULL FACNET CAPABILITY.—Not later than 3 years after
the date of the enactment of this Act, the Comptroller Greneral
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 thsm 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 sec-
tion 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 deter-
mination shall be submitted to the congressional committees
referred to in subsection (d). Each determination under this sub-
section 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
Grovemment Operations, on Armed Services, and on Small Business
of the House of Representatives.
    (e) DEFINITIONS.—In this section:




   79-194 O—95—25 : QL 3 Part 4
108 STAT. 3404              PUBLIC LAW 103-355—OCT. 13, 1994

                        (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
                   PoUcy Act, as added by section 4301.
                        (3) The term "full FACNET capabiUty" 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
41 u s e 251 note. 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 promul-
               gated 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 shedl 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.—Not-
               withstanding 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 provi-
               sions of subtitles A, B, and C of title III, and the provisions of
               title V.
41 u s e 251 note. 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.
             PUBLIC LAW 103-355—OCT. 13, 1994                      108 STAT. 3405

    (c) FINAL REGULATIONS.—Final regulations shall be published         Federal
in the Federal Register not later than 330 days after the date Roister,
                                                                     publication.
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 consid-
eration upon the request of the contractor.
    (e) REQUIREMENT FOR CLARITY.—Officers and employees of the
Federal Grovemment 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 con-
strued to affect the validity of any action taken or any contract
entered into before the date specified in the regulations piu-suant
to section 10001(bX3) 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 snail 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 tliat law (as promulgated piu'suant to this
     section); or
           (B) if no such date is specified in regulations, October
     1,1995.
SEC. 10003. EVALUATION BY THE COMPTROLLER GENERAL.                      41 u s e 251 note.
    (a) EVALUATION REIJVTING 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 evaluat-
ing compliance with such section.
    (b) EVALUATION OF IMPLEMENTATION OF REGULATIONS.—Not
later than 18 months afi^r 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 fulnlUng the other purposes of this Act.
    (c) COMMITTEES DESIGNATED T O RECEIVE THE REPORTS.—The
Comptroller Greneral shall submit the reports required by this sec-
tion 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 Representa-
     tives.
SEC. 10004. D A T A COLLECTION THROUGH THE FEDERAL PROCURE-             41 u s e 405 note.
             MENT D A T A SYSTEM.
    (a) DATA COLLECTION REQUIRED.—The Federal Procurement
Data System described in section 6(d)(4)(A) of the Office of Federal
108 STAT. 3406                     PUBLIC LAW 103-355—OCT. 13, 1994
                   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 con-
                        ducted 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 acquisi-
                   tion 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 ofappropriations.
                   "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 fimctions 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 ac-
                               quisition 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 Adminis-
40 use 471 note.           trative Services Act of 1949 (41 U.S.C. 471 et seq.) is amended
                           to read as follows:
                 PUBLIC LAW 103-355—OCT. 13, 1994                                108 STAT. 3407
"SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
     "(a) SHORT TITLE.—This Act may be cited as the Tederal Prop-
erty 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 afiairs 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 sup^y fund.
"Sec. 110. Information Technology Fund.
"Sec. 111. Automatic data processing equipment.
"Sec. 112. Federal information centers.
                      "TITLE 11—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. PoUcies, regulations, and delegations.
"Sec. 206. Surveys, st^dardization, tmd cataloging.
"Sec. 207. Applicability of antitrust laws.
"Sec. 208. Emplo3mient of personnel.
"Sec. 209. Civil remedies and penalties.
"Sec. 210. Operation of buildings and related activities.
"Sec. 211. Miotor vehicle identification and operation.
"Sec. 212. Reports to Congress.
                    "TITLE III—PROCUREMENT PROCEDURE
"Sec. 301. Declaration of purpose.
"Sec. 302. Application ana 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 Umiting subcontractor sales directly to the
            United States.
"Sec. 303H. Task and delivery order contracts: general authority.
"Sec. 3031. 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 ana 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.
108 STAT. 3408                      PUBLIC LAW 103-355—OCT. 13, 1994
                     "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 disposed.
                     "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 EC—SELECTION OF ARCHITECTS AND ENGINEERS
                     "Sec. 901. Definitions.
                     "Sec. 902. Policy.
                     "Sec. 903. Requests for data on architectural and engineerir^ services.
                     "Sec. 904. Negotiation of contracts for architectural and engineering services.
                     "Sec. 905. Short title.".
                          (b) AMENDMENTS FOR STYLISTIC CONSISTENCY.—
41 u s e 401 note.             (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 £uid
                          typeface as the section designation and heading of this section.
41 u s e 471 note.             (2) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
                         OF 1D49.—^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 Policv 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 amend-
                         ments 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
                     centufB" each place it appears and inserting in lieu thereof "per-
                     cent".
                          (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 amend-
                          ed by adding at the end the following new section:
              PUBLIC LAW 103-355—OCT. 13, 1994                                108 STAT. 3409
     "SEC. 6. This Act may be cited as the 'Miller Act'.".                        Miller Act.
          (2) BROOKS ARCHITECT-ENGINEERS ACT.—Title DC of                   the   40 u s e 270a
                                                                                  note.
     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.                                                           Brooks
                                                                                  Architect-
     "This title may be cited as the 'Brooks Architect-Engineers Engineers Act.
Act'.".                                                          40 u s e 541 note.
          (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                  Brooks
Processing Act'.".                                                                Automatic Data
                                                                                  Processing Act.
         (4) BUY AMERICAN ACT.—The Act of March 3, 1933 (41
    U.S.C. lOa-lOc), 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'.".                   Buy American
         (5) WALSH-HEAI-EY ACT.—The Act of June 30, 1936 (41                      Act.
                                                                                  41 u s e 10a note.
    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'.".                  Walsh-Healey
          (6) JAVITS-WAGNER-O'DAY ACT.—The Act entitled 'An Act                   Act.
                                                                                  41 u s e 35 note.
     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                   Javits-Wagner-
Act'.".                                                                           O'Day Act.
                                                                                  41 u s e 46 note.

  Approved October 13, 1994.




LEGISLATIVE HISTORY—S. 1587 (H.R. 2238) (S. 2206) (S. 2207):
HOUSE REPORTS: Nos. 103-545, Pt. 1, accompanying H.R. 2238 (Comm. on
                  Government Operations) and Pt. 2 (Coram, on Armed Services),
                  and 103-712 (Comm. of Conference).
SENATE REPORTS: Nos. 103-258 (Coram, on Governraental Affairs) and 103-259
                   (Coram, on Arraed Services).
CONGRESSIONAL RECORD, Vol. 140 (1994):
    June 7, 8, considered and passed Senate.
    June 27, H.R. 2238 considered and passed House; S. 1587, amended, passed in
      lieu.
    Aug. 23, Senate agreed to conference report.
    Sept. 20, House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994):
    Oct. 13, Presidential remarks.


File and source

File
STATUTE-108-Pg3243.pdf
Size
26,752,398 bytes
SHA-256
52228bdfd08fddfca560dcc5efdd346e0779557c07cbf6425401753745bce868
Our copy
STATUTE-108-Pg3243.pdf
Original
www.govinfo.gov
Back to top