#### TITLE XIV\--SERVICES ACQUISITION REFORM

> Sec. 1401. Short title.

### Subtitle A\--Acquisition Workforce and Training

> Sec. 1411. Definition of acquisition.
>
> Sec. 1412. Acquisition workforce training fund.
>
> Sec. 1413. Acquisition workforce recruitment program.
>
> Sec. 1414. Architectural and engineering acquisition workforce.

### Subtitle B\--Adaptation of Business Acquisition Practices

### Part I\--Adaptation of Business Management Practices

> Sec. 1421. Chief Acquisition Officers.
>
> Sec. 1422. Chief Acquisition Officers Council.
>
> Sec. 1423. Statutory and regulatory review.

### Part II\--Other Acquisition Improvements

> Sec. 1426. Extension of authority to carry out franchise fund
> programs.
>
> Sec. 1427. Improvements in contracting for architectural and
> engineering services.
>
> Sec. 1428. Authorization of telecommuting for Federal contractors.

### Subtitle C\--Acquisitions of Commercial Items

> Sec. 1431. Additional incentive for use of performance-based
> contracting for services.
>
> Sec. 1432. Authorization of additional commercial contract types.
>
> Sec. 1433. Clarification of commercial services definition.

### Subtitle D\--Other Matters

> Sec. 1441. Authority to enter into certain transactions for defense
> against or recovery from terrorism or nuclear, biological, chemical,
> or radiological attack.
>
> Sec. 1442. Public disclosure of noncompetitive contracting for the
> reconstruction of infrastructure in Iraq.
>
> Sec. 1443. Special emergency procurement authority.

### SEC. 1401. SHORT TITLE.

> This title may be cited as the \`Services Acquisition Reform Act of
> 2003\'.

#### Subtitle A\--Acquisition Workforce and Training

### SEC. 1411. DEFINITION OF ACQUISITION.

> Section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
> 403) is amended by adding at the end the following:
>
> \`(16) The term \`acquisition\'\--
>
> \`(A) means the process of acquiring, with appropriated funds, by
> contract for purchase or lease, property or services (including
> construction) that support the missions and goals of an executive
> agency, from the point at which the requirements of the executive
> agency are established in consultation with the chief acquisition
> officer of the executive agency; and
>
> \`(B) includes\--
>
> \`(i) the process of acquiring property or services that are already
> in existence, or that must be created, developed, demonstrated, and
> evaluated;
>
> \`(ii) the description of requirements to satisfy agency needs;
>
> \`(iii) solicitation and selection of sources;
>
> \`(iv) award of contracts;
>
> \`(v) contract performance;
>
> \`(vi) contract financing;
>
> \`(vii) management and measurement of contract performance through
> final delivery and payment; and
>
> \`(viii) technical and management functions directly related to the
> process of fulfilling agency requirements by contract.\'.

### SEC. 1412. ACQUISITION WORKFORCE TRAINING FUND.

> \(a\) PURPOSES- The purposes of this section are to ensure that the
> Federal acquisition workforce\--
>
> \(1\) adapts to fundamental changes in the nature of Federal
> Government acquisition of property and services associated with the
> changing roles of the Federal Government; and
>
> \(2\) acquires new skills and a new perspective to enable it to
> contribute effectively in the changing environment of the 21st
> century.
>
> \(b\) ESTABLISHMENT OF FUND- Section 37 of the Office of Federal
> Procurement Policy Act (41 U.S.C. 433) is amended by adding at the end
> of subsection (h) the following new paragraph:
>
> \`(3) ACQUISITION WORKFORCE TRAINING FUND- (A) The Administrator of
> General Services shall establish an acquisition workforce training
> fund. The Administrator shall manage the fund through the Federal
> Acquisition Institute to support the training of the acquisition
> workforce of the executive agencies other than the Department of
> Defense. The Administrator shall consult with the Administrator for
> Federal Procurement Policy in managing the fund.
>
> \`(B) There shall be credited to the acquisition workforce training
> fund 5 percent of the fees collected by executive agencies (other than
> the Department of Defense) under the following contracts:
>
> \`(i) Governmentwide task and delivery-order contracts entered into
> under sections 303H and 303I of the Federal Property and
> Administrative Services Act of 1949 (41 U.S.C. 253h and 253i).
>
> \`(ii) Governmentwide contracts for the acquisition of information
> technology as defined in section 11101 of title 40, United States
> Code, and multiagency acquisition contracts for such technology
> authorized by section 11314 of such title.
>
> \`(iii) Multiple-award schedule contracts entered into by the
> Administrator of General Services.
>
> \`(C) The head of an executive agency that administers a contract
> described in subparagraph (B) shall remit to the General Services
> Administration the amount required to be credited to the fund with
> respect to such contract at the end of each quarter of the fiscal
> year.
>
> \`(D) The Administrator of General Services, through the Office of
> Federal Acquisition Policy, shall ensure that funds collected for
> training under this section are not used for any purpose other than
> the purpose specified in subparagraph (A).
>
> \`(E) Amounts credited to the fund shall be in addition to funds
> requested and appropriated for education and training referred to in
> paragraph (1).
>
> \`(F) Amounts credited to the fund shall remain available to be
> expended only in the fiscal year for which credited and the two
> succeeding fiscal years.
>
> \`(G) This paragraph shall cease to be effective five years after the
> date of the enactment of the National Defense Authorization Act for
> Fiscal Year 2004.\'.
>
> \(c\) EXCEPTION- This section and the amendments made by this section
> shall not apply to the acquisition workforce of the Department of
> Defense. Fees charged to the Department of Defense under contracts
> covered by section 37(h)(3) of the Office of Federal Procurement
> Policy Act, as added by subsection (b), shall be reduced by 5 percent
> to reflect the Department\'s nonparticipation in the acquisition
> workforce training fund established by such section.

### SEC. 1413. ACQUISITION WORKFORCE RECRUITMENT PROGRAM.

> \(a\) DETERMINATION OF SHORTAGE CATEGORY POSITIONS- For purposes of
> sections 3304, 5333, and 5753 of title 5, United States Code, the head
> of a department or agency of the United States (other than the
> Secretary of Defense) may determine, under regulations prescribed by
> the Office of Personnel Management, that certain Federal acquisition
> positions (as described in section 37(g)(1)(A) of the Office of
> Federal Procurement Policy Act (41 U.S.C. 433(g)(1)(A)) are shortage
> category positions in order to use the authorities in those sections
> to recruit and appoint highly qualified persons directly to such
> positions in the department or agency.
>
> \(b\) TERMINATION OF AUTHORITY- The head of a department or agency may
> not appoint a person to a position of employment under this section
> after September 30, 2007.
>
> \(c\) REPORT- Not later than March 31, 2007, the Director of the
> Office of Personnel Management, in consultation with the Administrator
> for Federal Procurement Policy, shall submit to Congress a report on
> the implementation of this section. The report shall include\--
>
> \(1\) a list of the departments and agencies that exercised the
> authority provided in this section, and whether the exercise of the
> authority was carried out in accordance with the regulations
> prescribed by the Office of Personnel Management;
>
> \(2\) the Director\'s assessment of the efficacy of the exercise of
> the authority provided in this section in attracting employees with
> unusually high qualifications to the acquisition workforce; and
>
> \(3\) any recommendations considered appropriate by the Director on
> whether the authority to carry out the program should be extended.

### SEC. 1414. ARCHITECTURAL AND ENGINEERING ACQUISITION WORKFORCE.

> The Administrator for Federal Procurement Policy, in consultation with
> the Secretary of Defense, the Administrator of General Services, and
> the Director of the Office of Personnel Management, shall develop and
> implement a plan to ensure that the Federal Government maintains the
> necessary capability with respect to the acquisition of architectural
> and engineering services to\--
>
> \(1\) ensure that Federal Government employees have the expertise to
> determine agency requirements for such services;
>
> \(2\) establish priorities and programs (including acquisition plans);
>
> \(3\) establish professional standards;
>
> \(4\) develop scopes of work; and
>
> \(5\) award and administer contracts for such services.

#### Subtitle B\--Adaptation of Business Acquisition Practices

## *PART I\--ADAPTATION OF BUSINESS MANAGEMENT PRACTICES*

### SEC. 1421. CHIEF ACQUISITION OFFICERS.

> \(a\) APPOINTMENT OF CHIEF ACQUISITION OFFICERS- (1) Section 16 of the
> Office of Federal Procurement Policy Act (41 U.S.C. 414) is amended to
> read as follows:

### \`SEC. 16. CHIEF ACQUISITION OFFICERS AND SENIOR PROCUREMENT EXECUTIVES.

> \`(a) ESTABLISHMENT OF AGENCY CHIEF ACQUISITION OFFICERS- (1) The head
> of each executive agency described in section 901(b)(1) (other than
> the Department of Defense) or section 901(b)(2)(C) of title 31, United
> States Code, with a Chief Financial Officer appointed or designated
> under section 901(a) of such title shall appoint or designate a
> non-career employee as Chief Acquisition Officer for the agency, who
> shall\--
>
> \`(A) have acquisition management as that official\'s primary duty;
> and
>
> \`(B) advise and assist the head of the executive agency and other
> agency officials to ensure that the mission of the executive agency is
> achieved through the management of the agency\'s acquisition
> activities.
>
> \`(b) AUTHORITY AND FUNCTIONS OF AGENCY CHIEF ACQUISITION OFFICERS-
> The functions of each Chief Acquisition Officer shall include\--
>
> \`(1) monitoring the performance of acquisition activities and
> acquisition programs of the executive agency, evaluating the
> performance of those programs on the basis of applicable performance
> measurements, and advising the head of the executive agency regarding
> the appropriate business strategy to achieve the mission of the
> executive agency;
>
> \`(2) increasing the use of full and open competition in the
> acquisition of property and services by the executive agency by
> establishing policies, procedures, and practices that ensure that the
> executive agency receives a sufficient number of sealed bids or
> competitive proposals from responsible sources to fulfill the
> Government\'s requirements (including performance and delivery
> schedules) at the lowest cost or best value considering the nature of
> the property or service procured;
>
> \`(3) increasing appropriate use of performance-based contracting and
> performance specifications;
>
> \`(4) making acquisition decisions consistent with all applicable laws
> and establishing clear lines of authority, accountability, and
> responsibility for acquisition decisionmaking within the executive
> agency;
>
> \`(5) managing the direction of acquisition policy for the executive
> agency, including implementation of the unique acquisition policies,
> regulations, and standards of the executive agency;
>
> \`(6) developing and maintaining an acquisition career management
> program in the executive agency to ensure that there is an adequate
> professional workforce; and
>
> \`(7) as part of the strategic planning and performance evaluation
> process required under section 306 of title 5, United States Code, and
> sections 1105(a)(28), 1115, 1116, and 9703 of title 31, United States
> Code\--
>
> \`(A) assessing the requirements established for agency personnel
> regarding knowledge and skill in acquisition resources management and
> the adequacy of such requirements for facilitating the achievement of
> the performance goals established for acquisition management;
>
> \`(B) in order to rectify any deficiency in meeting such requirements,
> developing strategies and specific plans for hiring, training, and
> professional development; and
>
> \`(C) reporting to the head of the executive agency on the progress
> made in improving acquisition management capability.
>
> \`(c) SENIOR PROCUREMENT EXECUTIVE- (1) The head of each executive
> agency shall designate a senior procurement executive who shall be
> responsible for management direction of the procurement system of the
> executive agency, including implementation of the unique procurement
> policies, regulations, and standards of the executive agency.
>
> \`(2) In the case of an executive agency for which a Chief Acquisition
> Officer has been appointed or designated under subsection (a), the
> head of such executive agency shall either\--
>
> \`(A) designate the Chief Acquisition Officer as the senior
> procurement executive for the executive agency; or
>
> \`(B) ensure that the senior procurement executive designated for the
> executive agency under paragraph (1) reports directly to the Chief
> Acquisition Officer without intervening authority.\'.
>
> \(2\) The item relating to section 16 in the table of contents in
> section 1(b) of such Act is amended to read as follows:
>
> \`Sec. 16. Chief Acquisition Officers and senior procurement
> executives.\'.
>
> \(b\) TECHNICAL CORRECTION- Section 1115(a) of title 31, United States
> Code, is amended by striking \`section 1105(a)(29)\' and inserting
> \`section 1105(a)(28)\'.

### SEC. 1422. CHIEF ACQUISITION OFFICERS COUNCIL.

> \(a\) ESTABLISHMENT OF COUNCIL- The Office of Federal Procurement
> Policy Act (41 U.S.C. 403 et seq.) is amended by inserting after
> section 16 the following new section:

### \`SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL.

> \`(a) ESTABLISHMENT- There is established in the executive branch a
> Chief Acquisition Officers Council.
>
> \`(b) MEMBERSHIP- The members of the Council shall be as follows:
>
> \`(1) The Deputy Director for Management of the Office of Management
> and Budget, who shall act as Chairman of the Council.
>
> \`(2) The Administrator for Federal Procurement Policy.
>
> \`(3) The Under Secretary of Defense for Acquisition, Technology, and
> Logistics.
>
> \`(4) The chief acquisition officer of each executive agency that is
> required to have a chief acquisition officer under section 16 and the
> senior procurement executive of each military department.
>
> \`(5) Any other senior agency officer of each executive agency,
> appointed by the head of the agency in consultation with the Chairman,
> who can effectively assist the Council in performing the functions set
> forth in subsection (e) and supporting the associated range of
> acquisition activities.
>
> \`(c) LEADERSHIP; SUPPORT- (1) The Administrator for Federal
> Procurement Policy shall lead the activities of the Council on behalf
> of the Deputy Director for Management.
>
> \`(2)(A) The Vice Chairman of the Council shall be selected by the
> Council from among its members.
>
> \`(B) The Vice Chairman shall serve a 1-year term, and may serve
> multiple terms.
>
> \`(3) The Administrator of General Services shall provide
> administrative and other support for the Council.
>
> \`(d) PRINCIPAL FORUM- The Council is designated the principal
> interagency forum for monitoring and improving the Federal acquisition
> system.
>
> \`(e) FUNCTIONS- The Council shall perform functions that include the
> following:
>
> \`(1) Develop recommendations for the Director of the Office of
> Management and Budget on Federal acquisition policies and
> requirements.
>
> \`(2) Share experiences, ideas, best practices, and innovative
> approaches related to Federal acquisition.
>
> \`(3) Assist the Administrator in the identification, development, and
> coordination of multiagency projects and other innovative initiatives
> to improve Federal acquisition.
>
> \`(4) Promote effective business practices that ensure the timely
> delivery of best value products to the Federal Government and achieve
> appropriate public policy objectives.
>
> \`(5) Further integrity, fairness, competition, openness, and
> efficiency in the Federal acquisition system.
>
> \`(6) Work with the Office of Personnel Management to assess and
> address the hiring, training, and professional development needs of
> the Federal Government related to acquisition.
>
> \`(7) Work with the Administrator and the Federal Acquisition
> Regulatory Council to promote the business practices referred to in
> paragraph (4) and other results of the functions carried out under
> this subsection.\'.
>
> \(b\) CLERICAL AMENDMENT- The table of contents in section 1(b) of
> such Act is amended by inserting after the item relating to section 16
> the following new item:
>
> \`Sec. 16A. Chief Acquisition Officers Council.\'.

### SEC. 1423. STATUTORY AND REGULATORY REVIEW.

> \(a\) ESTABLISHMENT- Not later than 90 days after the date of the
> enactment of this Act, the Administrator for Federal Procurement
> Policy shall establish an advisory panel to review laws and
> regulations regarding the use of commercial practices,
> performance-based contracting, the performance of acquisition
> functions across agency lines of responsibility, and the use of
> Governmentwide contracts.
>
> \(b\) MEMBERSHIP- The panel shall be composed of at least nine
> individuals who are recognized experts in acquisition law and
> Government acquisition policy. In making appointments to the panel,
> the Administrator shall\--
>
> \(1\) consult with the Secretary of Defense, the Administrator of
> General Services, the Committees on Armed Services and Government
> Reform of the House of Representatives, and the Committees on Armed
> Services and Governmental Affairs of the Senate; and
>
> \(2\) ensure that the members of the panel reflect the diverse
> experiences in both the public and private sectors, including
> academia.
>
> \(c\) DUTIES- The panel shall\--
>
> \(1\) review all Federal acquisition laws and regulations, and, to the
> extent practicable, government-wide acquisition policies, with a view
> toward ensuring effective and appropriate use of commercial practices
> and performance-based contracting; and
>
> \(2\) make any recommendations for the modification of such laws,
> regulations, or policies that are considered necessary as a result of
> such review\--
>
> \(A\) to protect the best interests of the Federal Government;
>
> \(B\) to ensure the continuing financial and ethical integrity of
> acquisitions by the Federal Government; and
>
> \(C\) to amend or eliminate any provisions in such laws, regulations,
> or policies that are unnecessary for the effective, efficient, and
> fair award and administration of contracts for the acquisition by the
> Federal Government of goods and services.
>
> \(d\) REPORT- Not later than one year after the establishment of the
> panel, the panel shall submit to the Administrator and to the
> Committees on Armed Services and Government Reform of the House of
> Representatives and the Committees on Armed Services and Governmental
> Affairs of the Senate a report containing a detailed statement of the
> findings, conclusions, and recommendations of the panel.

## *PART II\--OTHER ACQUISITION IMPROVEMENTS*

### SEC. 1426. EXTENSION OF AUTHORITY TO CARRY OUT FRANCHISE FUND PROGRAMS.

> Section 403(f) of the Federal Financial Management Act of 1994 (Public
> Law 103-356; 31 U.S.C. 501 note) is amended by striking \`October 1,
> 2003\' and inserting \`December 31, 2004\'.

### SEC. 1427. IMPROVEMENTS IN CONTRACTING FOR ARCHITECTURAL AND ENGINEERING SERVICES.

> \(a\) TITLE 10- Section 2855(b) of title 10, United States Code, is
> amended in paragraph (2), by striking \`\$85,000\' and inserting
> \`\$300,000\'.
>
> \(b\) ARCHITECTURAL AND ENGINEERING SERVICES- Architectural and
> engineering services (as defined in section 1102 of title 40, United
> States Code) shall not be offered under multiple-award schedule
> contracts entered into by the Administrator of General Services or
> under Governmentwide task and delivery order contracts entered into
> under sections 2304a and 2304b of title 10, United States Code, or
> sections 303H and 303I of the Federal Property and Administrative
> Services Act of 1949 (41 U.S.C. 253h and 253i) unless such services\--
>
> \(1\) are performed under the direct supervision of a professional
> architect or engineer licensed, registered, or certified in the State,
> territory (including the Commonwealth of Puerto Rico), possession, or
> Federal District in which the services are to be performed; and
>
> \(2\) are awarded in accordance with the selection procedures set
> forth in chapter 11 of title 40, United States Code.

### SEC. 1428. AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRACTORS.

> \(a\) AMENDMENT TO THE FEDERAL ACQUISITION REGULATION- Not later than
> 180 days after the date of the enactment of this Act, the Federal
> Acquisition Regulatory Council shall amend the Federal Acquisition
> Regulation issued in accordance with sections 6 and 25 of the Office
> of Federal Procurement Policy Act (41 U.S.C. 405 and 421) to permit
> telecommuting by employees of Federal Government contractors in the
> performance of contracts entered into with executive agencies.
>
> \(b\) CONTENT OF AMENDMENT- The regulation issued pursuant to
> subsection (a) shall, at a minimum, provide that solicitations for the
> acquisition of property or services may not set forth any requirement
> or evaluation criteria that would\--
>
> \(1\) render an offeror ineligible to enter into a contract on the
> basis of the inclusion of a plan of the offeror to permit the
> offeror\'s employees to telecommute, unless the contracting officer
> concerned first determines that the requirements of the agency,
> including security requirements, cannot be met if the telecommuting is
> permitted and documents in writing the basis for that determination;
> or
>
> \(2\) reduce the scoring of an offer on the basis of the inclusion in
> the offer of a plan of the offeror to permit the offeror\'s employees
> to telecommute, unless the contracting officer concerned first
> determines that the requirements of the agency, including security
> requirements, would be adversely impacted if telecommuting is
> permitted and documents in writing the basis for that determination.
>
> \(c\) DEFINITION- In this section, the term \`executive agency\' has
> the meaning given that term in section 4(1) of the Office of Federal
> Procurement Policy Act (41 U.S.C. 403(1)).

#### Subtitle C\--Acquisitions of Commercial Items

### SEC. 1431. ADDITIONAL INCENTIVE FOR USE OF PERFORMANCE-BASED CONTRACTING FOR SERVICES.

> \(a\) IN GENERAL- The Office of Federal Procurement Policy Act (41
> U.S.C. 403 et seq.) is amended by adding at the end the following new
> section:

### \`SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF SERVICES CONTRACTS.

> \`(a) INCENTIVE FOR USE OF PERFORMANCE-BASED SERVICES CONTRACTS- A
> performance-based contract for the procurement of services entered
> into by an executive agency or a performance-based task order for
> services issued by an executive agency may be treated as a contract
> for the procurement of commercial items if\--
>
> \`(1) the value of the contract or task order is estimated not to
> exceed \$25,000,000;
>
> \`(2) the contract or task order sets forth specifically each task to
> be performed and, for each task\--
>
> \`(A) defines the task in measurable, mission-related terms;
>
> \`(B) identifies the specific end products or output to be achieved;
> and
>
> \`(C) contains firm, fixed prices for specific tasks to be performed
> or outcomes to be achieved; and
>
> \`(3) the source of the services provides similar services to the
> general public under terms and conditions similar to those offered to
> the Federal Government.
>
> \`(b) REGULATIONS- The regulations implementing this section shall
> require agencies to collect and maintain reliable data sufficient to
> identify the contracts or task orders treated as contracts for
> commercial items using the authority of this section. The data may be
> collected using the Federal Procurement Data System or other reporting
> mechanism.
>
> \`(c) REPORT- Not later than two years after the date of the enactment
> of this section, the Director of the Office of Management and Budget
> shall prepare and submit to the Committees on Governmental Affairs and
> on Armed Services of the Senate and the Committees on Government
> Reform and on Armed Services of the House of Representatives a report
> on the contracts or task orders treated as contracts for commercial
> items using the authority of this section. The report shall include
> data on the use of such authority both government-wide and for each
> department and agency.
>
> \`(d) EXPIRATION- The authority under this section shall expire 10
> years after the date of the enactment of this section.\'.
>
> \(b\) CENTER OF EXCELLENCE IN SERVICE CONTRACTING- Not later than 180
> days after the date of the enactment of this Act, the Administrator
> for Federal Procurement Policy shall establish a center of excellence
> in contracting for services. The center of excellence shall assist the
> acquisition community by identifying, and serving as a clearinghouse
> for, best practices in contracting for services in the public and
> private sectors.
>
> \(c\) REPEAL OF SUPERSEDED PROVISION- Subsection (b) of section 821 of
> the Floyd D. Spence National Defense Authorization Act for Fiscal Year
> 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-218;
> 10 U.S.C. 2302 note) is repealed.
>
> \(d\) CLERICAL AND TECHNICAL AMENDMENTS- (1) The table of contents in
> section 1(b) of such Act is amended by striking the last item and
> inserting the following:
>
> \`Sec. 40. Protection of constitutional rights of contractors.
>
> \`Sec. 41. Incentives for efficient performance of services
> contracts.\'.
>
> \(2\) The section before section 41 of such Act (as added by
> subsection (a)) is redesignated as section 40.

### SEC. 1432. AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT TYPES.

> Section 8002(d) of the Federal Acquisition Streamlining Act of 1994
> (Public Law 103-355; 108 Stat. 3387; 41 U.S.C. 264 note) is amended\--
>
> \(1\) by redesignating paragraph (1) as subparagraph (A) and in that
> subparagraph by striking \`and\';
>
> \(2\) by redesignating paragraph (2) as subparagraph (B) and in that
> subparagraph by striking the period at the end and inserting \`;
> and\';
>
> \(3\) by adding after subparagraph (B) (as so redesignated) the
> following new subparagraph:
>
> \`(C) subject to paragraph (2), authority for use of a
> time-and-materials contract or a labor-hour contract for the
> procurement of commercial services that are commonly sold to the
> general public through such contracts and are purchased by the
> procuring agency on a competitive basis.\';
>
> \(4\) by striking \`USE OF FIRM, FIXED PRICE CONTRACTS- The\' and
> inserting \`PROVISIONS RELATING TO TYPES OF CONTRACTS FOR COMMERCIAL
> ITEMS- (1)\'; and
>
> \(5\) by adding at the end the following new paragraphs:
>
> \`(2) A time-and-materials contract or a labor-hour contract may be
> used pursuant to the authority referred to in paragraph (1)(C)\--
>
> \`(A) only for a procurement of commercial services in a category of
> commercial services described in paragraph (3); and\--
>
> \`(B) only if the contracting officer for such procurement\--
>
> \`(i) executes a determination and findings that no other contract
> type is suitable;
>
> \`(ii) includes in the contract a ceiling price that the contractor
> exceeds at its own risk; and
>
> \`(iii) authorizes any subsequent change in the ceiling price only
> upon a determination, documented in the contract file, that it is in
> the best interest of the procuring agency to change such ceiling
> price.
>
> \`(3) The categories of commercial services referred to in paragraph
> (2) are as follows:
>
> \`(A) Commercial services procured for support of a commercial item,
> as described in section 4(12)(E) of the Office of Federal Procurement
> Policy Act (41 U.S.C. 403(12)(E)).
>
> \`(B) Any other category of commercial services that is designated by
> the Administrator for Federal Procurement Policy in the Federal
> Acquisition Regulation for the purposes of this paragraph on the basis
> that\--
>
> \`(i) the commercial services in such category are of a type of
> commercial services that are commonly sold to the general public
> through use of time-and-materials or labor-hour contracts; and
>
> \`(ii) it would be in the best interests of the Federal Government to
> authorize use of time-and-materials or labor-hour contracts for
> purchases of the commercial services in such category.\'.

### SEC. 1433. CLARIFICATION OF COMMERCIAL SERVICES DEFINITION.

> Section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
> 403) is amended in paragraph (12)(F) by inserting \`or specific
> outcomes to be achieved\' after \`performed\'.

#### Subtitle D\--Other Matters

### SEC. 1441. AUTHORITY TO ENTER INTO CERTAIN TRANSACTIONS FOR DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

> \(a\) AUTHORITY-
>
> \(1\) IN GENERAL- The head of an executive agency who engages in basic
> research, applied research, advanced research, and development
> projects that\--
>
> \(A\) are necessary to the responsibilities of such official\'s
> executive agency in the field of research and development, and
>
> \(B\) have the potential to facilitate defense against or recovery
> from terrorism or nuclear, biological, chemical, or radiological
> attack,
>
> may exercise the same authority (subject to the same restrictions and
> conditions) with respect to such research and projects as the
> Secretary of Defense may exercise under section 2371 of title 10,
> United States Code, except for subsections (b) and (f) of such section
> 2371.
>
> \(2\) PROTOTYPE PROJECTS- The head of an executive agency may, under
> the authority of paragraph (1), carry out prototype projects that meet
> the requirements of subparagraphs (A) and (B) of paragraph (1) in
> accordance with the requirements and conditions provided for carrying
> out prototype projects under section 845 of the National Defense
> Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C.
> 2371 note), including that, to the maximum extent practicable,
> competitive procedures shall be used when entering into agreements to
> carry out projects under subsection (a) of that section and that the
> period of authority to carry out projects under such subsection (a)
> terminates as provided in subsection (g) of that section.
>
> \(3\) APPLICATION OF REQUIREMENTS AND CONDITIONS- In applying the
> requirements and conditions of section 845 of the National Defense
> Authorization Act for Fiscal Year 1994 under this subsection\--
>
> \(A\) subsection (c) of that section shall apply with respect to
> prototype projects carried out under this paragraph; and
>
> \(B\) the Director of the Office of Management and Budget shall
> perform the functions of the Secretary of Defense under subsection (d)
> of that section.
>
> \(4\) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES-
>
> \(A\) OMB AUTHORIZATION REQUIRED- The head of an executive agency may
> exercise authority under this subsection for a project only if
> authorized by the Director of the Office of Management and Budget to
> use the authority for such project.
>
> \(B\) RELATIONSHIP TO AUTHORITY OF DEPARTMENT OF HOMELAND SECURITY-
> The authority under this subsection shall not apply to the Secretary
> of Homeland Security while section 831 of the Homeland Security Act of
> 2002 (Public Law 107-296; 116 Stat. 2224) is in effect.
>
> \(b\) ANNUAL REPORT- The annual report of the head of an executive
> agency that is required under subsection (h) of section 2371 of title
> 10, United States Code, as applied to the head of the executive agency
> by subsection (a), shall be submitted to the Committee on Governmental
> Affairs of the Senate and the Committee on Government Reform of the
> House of Representatives.
>
> \(c\) REGULATIONS- The Director of the Office of Management and Budget
> shall prescribe regulations to carry out this section. No transaction
> may be conducted under the authority of this section before the date
> on which such regulations take effect.
>
> \(d\) TERMINATION OF AUTHORITY- The authority to carry out
> transactions under subsection (a) shall terminate on September 30,
> 2008.

### SEC. 1442. PUBLIC DISCLOSURE OF NONCOMPETITIVE CONTRACTING FOR THE RECONSTRUCTION OF INFRASTRUCTURE IN IRAQ.

> \(a\) DISCLOSURE REQUIRED-
>
> \(1\) PUBLICATION AND PUBLIC AVAILABILITY- The head of an executive
> agency of the United States that enters into a contract for the
> repair, maintenance, or construction of infrastructure in Iraq without
> full and open competition shall publish in the Federal Register or
> Commerce Business Daily and otherwise make available to the public,
> not later than 30 days after the date on which the contract is entered
> into, the following information:
>
> \(A\) The amount of the contract.
>
> \(B\) A brief description of the scope of the contract.
>
> \(C\) A discussion of how the executive agency identified, and
> solicited offers from, potential contractors to perform the contract,
> together with a list of the potential contractors that were issued
> solicitations for the offers.
>
> \(D\) The justification and approval documents on which was based the
> determination to use procedures other than procedures that provide for
> full and open competition.
>
> \(2\) INAPPLICABILITY TO CONTRACTS AFTER FISCAL YEAR 2005- Paragraph
> (1) does not apply to a contract entered into after September 30,
> 2005.
>
> \(b\) CLASSIFIED INFORMATION-
>
> \(1\) AUTHORITY TO WITHHOLD- The head of an executive agency may\--
>
> \(A\) withhold from publication and disclosure under subsection (a)
> any document that is classified for restricted access in accordance
> with an Executive order in the interest of national defense or foreign
> policy; and
>
> \(B\) redact any part so classified that is in a document not so
> classified before publication and disclosure of the document under
> subsection (a).
>
> \(2\) AVAILABILITY TO CONGRESS- In any case in which the head of an
> executive agency withholds information under paragraph (1), the head
> of such executive agency shall make available an unredacted version of
> the document containing that information to the chairman and ranking
> member of each of the following committees of Congress:
>
> \(A\) The Committee on Governmental Affairs of the Senate and the
> Committee on Government Reform of the House of Representatives.
>
> \(B\) The Committees on Appropriations of the Senate and House of
> Representatives.
>
> \(C\) Each committee that the head of the executive agency determines
> has legislative jurisdiction for the operations of such department or
> agency to which the information relates.
>
> \(c\) FISCAL YEAR 2003 CONTRACTS- This section shall apply to
> contracts entered into on or after October 1, 2002, except that, in
> the case of a contract entered into before the date of the enactment
> of this Act, subsection (a) shall be applied as if the contract had
> been entered into on the date of the enactment of this Act.
>
> \(d\) RELATIONSHIP TO OTHER DISCLOSURE LAWS- Nothing in this section
> shall be construed as affecting obligations to disclose United States
> Government information under any other provision of law.
>
> \(e\) DEFINITIONS- In this section, the terms \`executive agency\' and
> \`full and open competition\' have the meanings given such terms in
> section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
> 403).

### SEC. 1443. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

> \(a\) PERMANENT AUTHORITY- (1) The Office of Federal Procurement
> Policy Act (41 U.S.C. 403 et seq.) is amended by inserting after
> section 32 the following new section:

### \`SEC. 32A. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

> \`(a) APPLICABILITY- The authorities provided in this section apply
> with respect to any procurement of property or services by or for an
> executive agency that, as determined by the head of such executive
> agency, are to be used\--
>
> \`(1) in support of a contingency operation; or
>
> \`(2) to facilitate the defense against or recovery from nuclear,
> biological, chemical, or radiological attack against the United
> States.
>
> \`(b) INCREASED THRESHOLDS- For a procurement to which this section
> applies under subsection (a)\--
>
> \`(1) the amount specified in subsections (c), (d), and (f) of section
> 32 shall be deemed to be \$15,000; and
>
> \`(2) the term \`simplified acquisition threshold\' means\--
>
> \`(A) \$250,000 in the case of any contract to be awarded and
> performed, or purchase to be made, inside the United States; and
>
> \`(B) \$500,000 in the case of any contract to be awarded and
> performed, or purchase to be made, outside the United States.
>
> \`(c) INCREASED LIMITATION ON USE OF SIMPLIFIED ACQUISITION
> PROCEDURES- For a procurement to which this section applies under
> subsection (a), the \$5,000,000 limitation in the following provisions
> of law shall be deemed to be \$10,000,000:
>
> \`(1) Section 31(a)(2) of this Act.
>
> \`(2) Section 2304(g)(1)(B) of title 10, United States Code.
>
> \`(3) Section 303(g)(1)(B) of the Federal Property and Administrative
> Services Act of 1949 (41 U.S.C. 253(g)(1)(B)).
>
> \`(d) COMMERCIAL ITEMS AUTHORITY- (1) The head of an executive agency
> carrying out a procurement of property or a service to which this
> section applies under subsection (a)(2) may treat such property or
> service as a commercial item for the purpose of carrying out such
> procurement.
>
> \`(2) A contract in an amount greater than \$15,000,000 that is
> awarded on a sole source basis for an item or service treated as a
> commercial item under paragraph (1) shall not be exempt from\--
>
> \`(A) cost accounting standards promulgated pursuant to section 26 of
> this Act; or
>
> \`(B) cost or pricing data requirements (commonly referred to as truth
> in negotiating) under section 2306a of title 10, United States Code,
> and section 304A of title III of the Federal Property and
> Administrative Services Act of 1949 (41 U.S.C. 254b).
>
> \`(e) CONTINGENCY OPERATION DEFINED- In this section, the term
> \`contingency operation\' has the meaning given such term in section
> 101(a)(13) of title 10, United States Code.\'.
>
> \(2\) The table of contents in section 1(b) of such Act is amended by
> inserting after the item relating to section 32 the following new
> item:
>
> \`Sec. 32A. Special emergency procurement authority.\'.
>
> \(b\) CONTINUATION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION
> PROCEDURES- Section 4202(e) of the Clinger-Cohen Act (division D of
> Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by
> striking \`January 1, 2004\' and inserting \`January 1, 2006\'.