To provide for flexibility in making emergency Federal procurements, and for other purposes.

Summary: Federal Emergency Procurement Flexibility Act of 2002 - Provides that the simplified acquisition threshold to be applied for any FY 2002 or 2003 executive agency procurement of property or services that is to be used to facilitate the defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack and that is carried out in support of a humanitarian or peacekeeping operation or a contingency operation shall be: (1) $250,000 for a contract to be awarded and performed, or a purchase to be made, inside the United States; or (2) $500,000 for a contract to be awarded and performed, or a purchase to be made, outside of the United States.Authorizes the head of each agency to designate certain employees to make such procurements below a micro-purchase threshold of $15,000 (currently, $2,500) under the Office of Federal Procurement Policy Act.Permits executive agencies to apply to any such procurement specified provisions of law relating to the procurement of commercial items, without regard to whether the property and services are commercial items. Deems the $5 million limitation on the use of special simplified acquisition procedures to be $10 million.Requires executive agencies to use specified streamlined acquisition authorities and procedures for such procurements.Allows executive agencies who engage in necessary basic, applied, and advanced research and development projects that have the potential to facilitate defense against or recovery from terrorism or a terrorist attack to exercise specified authority accorded the Secretary of Defense for research project transactions other than contracts and grants and to carry out prototype projects.Directs executive agencies to conduct market research to identify the capabilities available in the marketplace in furtherance of defense against or recovery from terrorism or a terrorist attack.

SECTION 1. SHORT TITLE; DEFINITIONS.

    (a) Short Title.--This Act may be cited as the ``Federal Emergency 
Procurement Flexibility Act of 2002''.
    (b) Definitions.--In this Act:
            (1) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 4(1) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(1)).
            (2) Fiscal year 2002 or 2003 procurement.--The term 
        ``fiscal year 2002 or 2003 procurement'' means a procurement 
        for which funds are obligated during fiscal year 2002 or 2003.

       TITLE I--FISCAL YEAR 2002 AND 2003 EMERGENCY PROCUREMENTS

SEC. 101. PROCUREMENTS FOR DEFENSE AGAINST, OR RECOVERY FROM, TERRORISM 
              OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

    (a) Applicability.--The authorities provided in this title apply to 
any fiscal year 2002 or 2003 procurement of property or services by or 
for an executive agency that, as determined by the head of the 
executive agency, are to be used to facilitate the defense against, or 
recovery from, terrorism or nuclear, biological, chemical, or 
radiological attack.
    (b) Requirement for Advance Approval.--The authorities under 
sections 102 through 104 of this title may only be exercised, except in 
cases of unusual and compelling urgency, with the advance approval of 
the head of the applicable executive agency or his designee.

SEC. 102. INCREASED SIMPLIFIED ACQUISITION THRESHOLD FOR PROCUREMENTS 
              IN SUPPORT OF HUMANITARIAN OR PEACEKEEPING OPERATIONS OR 
              CONTINGENCY OPERATIONS.

    (a) Fiscal Year 2002 and 2003 Threshold Amounts.--For a procurement 
referred to in section 101 that is carried out in support of a 
humanitarian or peacekeeping operation or a contingency operation, the 
simplified acquisition threshold definitions shall be applied as if the 
amount determined under the exception provided for such an operation in 
those definitions were--
            (1) in the case of a contract to be awarded and performed, 
        or purchase to be made, inside the United States, $250,000; or
            (2) in the case of a contract to be awarded and performed, 
        or purchase to be made, outside the United States, $500,000.
    (b) Simplified Acquisition Threshold Definitions.--In this section, 
the term ``simplified acquisition threshold definitions'' means the 
following:
            (1) Section 4(11) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(11)).
            (2) Section 309(d) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 259(d)).
            (3) Section 2302(7) of title 10, United States Code.

SEC. 103. INCREASED MICRO-PURCHASE THRESHOLD FOR CERTAIN PROCUREMENTS.

    (a) In General.--(1) The head of each agency may designate certain 
employees of the agency to make procurements described in section 101 
for which in the administration of section 32 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428) the amount specified in 
subsections (c), (d), and (f) of such section 32 shall be deemed to be 
$15,000.
    (2) The number of employees designated under paragraph (1) shall 
be--
            (A) fewer than the number of employees of the agency who 
        are authorized to make purchases without obtaining competitive 
        quotations, pursuant to section 32(c) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 428(c)), unless otherwise 
        authorized by the Director of the Office of Management and 
        Budget;
            (B) sufficient to ensure the geographic dispersal of the 
        availability of the use of the procurement authority under such 
        paragraph at locations reasonably considered to be potential 
        terrorist targets; and
            (C) sufficiently limited to allow for the careful 
        monitoring of employees designated under such paragraph.
    (b) Conforming Amendment.--Section 836 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 
2302 note) is repealed.

SEC. 104. APPLICATION OF CERTAIN COMMERCIAL ITEMS AUTHORITIES TO 
              CERTAIN PROCUREMENTS.

    (a) Authority.--
            (1) In general.--The head of an executive agency may apply 
        the provisions of law listed in paragraph (2) to a procurement 
        referred to in section 101 without regard to whether the 
        property or services are commercial items.
            (2) Commercial item laws.--The provisions of law referred 
        to in paragraph (1) are as follows:
                    (A) Sections 31 and 34 of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 427, 430), except 
                that no provision in such section 34 or regulation 
                issued to implement such section shall be construed as 
                exempting contracts awarded under the authority of this 
                section from the provisions in section 2306a of title 
10, United States Code, or section 304A of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 254b), relating to truth 
in negotiations, or section 26 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 422), relating to cost accounting standards).
                    (B) Section 2304(g) of title 10, United States 
                Code.
                    (C) Section 303(g) of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253(g)).
    (b) Inapplicability of Limitation on Use of Simplified Acquisition 
Procedures.--The $5,000,000 limitation provided in section 31(a)(2) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 427(a)(2)), 
section 2304(g)(1)(B) of title 10, United States Code, and section 
303(g)(1)(B) of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 253(g)(1)(B)) shall be deemed to be $10,000,000 for 
purposes of property or services to which any of the provisions of law 
referred to in subsection (a) are applied under the authority of this 
section.
    (c) Continuation of Authority for Simplified Purchase Procedures.--
Authority under a provision of law referred to in subsection (a)(2) 
that expires under section 4202(e) of the Clinger-Cohen Act of 1996 
(divisions D and E of Public Law 104-106; 10 U.S.C. 2304 note) shall, 
notwithstanding such section, continue to apply for a fiscal year 2002 
or 2003 procurement as provided in subsections (a) and (b).

SEC. 105. USE OF STREAMLINED PROCEDURES.

    (a) In General.--The head of an executive agency shall, when 
appropriate, use streamlined acquisition authorities and procedures 
authorized by law for a procurement referred to in section 101, 
including authorities and procedures that are provided under the 
following provisions of law:
            (1) Federal property and administrative services act of 
        1949.--In title III of the Federal Property and Administrative 
        Services Act of 1949:
                    (A) Paragraphs (1), (2), (6), and (7) of subsection 
                (c) of section 303 (41 U.S.C. 253), relating to use of 
                procedures other than competitive procedures under 
                certain circumstances (subject to subsection (e) of 
                such section).
                    (B) Section 303J (41 U.S.C. 253j), relating to 
                orders under task and delivery order contracts.
            (2) Title 10, united states code.--In chapter 137 of title 
        10, United States Code:
                    (A) Paragraphs (1), (2), (6), and (7) of subsection 
                (c) of section 2304, relating to use of procedures 
                other than competitive procedures under certain 
                circumstances (subject to subsection (e) of such 
                section).
                    (B) Section 2304c, relating to orders under task 
                and delivery order contracts.
            (3) Office of federal procurement policy act.--Paragraphs 
        (1)(B), (1)(D), and (2) of section 18(c) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 416(c)), relating to 
        inapplicability of a requirement for procurement notice.
    (b) Non-Discrimination Against Small-Business Concerns.--Subsection 
(a) shall be applied in a manner that does not discriminate against 
small-business concerns (within the meaning of such term as used in the 
Small Business Act (15 U.S.C. 632 et seq.)) or any type of small-
business concern.

SEC. 106. OFFICE OF MANAGEMENT AND BUDGET GUIDANCE.

    (a) In General.--The Director of the Office of Management and 
Budget shall issue guidance and procedures regarding--
            (1) the types of procurements that qualify under section 
        101 as facilitating the defense against, or recovery from, 
        terrorism or nuclear, biological, chemical, or radiological 
        attack;
            (2) the implementation of section 103, including the 
        appropriate number of employees that should be designated under 
        section 103; and
            (3) the use of simplified acquisition procedures for a 
        purchase of property or services under the authority of section 
        104.
    (b) Number of Designated Employees.--The guidance under subsection 
(a)(1) shall include provisions that provide the following:
            (1) Procurements made under the authority of section 103 
        should be subject to review by a designated supervisor on not 
        less than a monthly basis.
            (2) The supervisor responsible for the review described in 
        paragraph (1) shall be responsible for no more than 7 employees 
        making procurements under section 103.

SEC. 107. REVIEW AND REPORT BY COMPTROLLER GENERAL.

    Not later than 180 days after the end of fiscal year 2003, the 
Comptroller General shall submit to the Committee on Governmental 
Affairs of the Senate and the Committee on Government Reform of the 
House of Representatives a report on the use of the authorities 
provided in this title. The report shall contain the following:
            (1) An assessment of the extent to which property and 
        services acquired using authorities provided under this title 
        contributed to the capacity of the Federal workforce to 
        facilitate the defense against, or recovery from, terrorism or 
        nuclear, biological, chemical, or radiological attack.
            (2) An assessment of the extent to which prices for 
        property and services acquired using authorities provided under 
        this title reflected the best value.
            (3) The number of employees designated by each executive 
        agency under section 103.
            (4) An assessment of the extent to which the number of 
        employees designated under section 103 by each executive agency 
        is reasonable and necessary to achieve the purpose of 
        facilitating the defense against, or recovery from, terrorism 
        or nuclear, biological, chemical, or radiological attack.
            (5) An assessment of the extent to which executive agencies 
        have monitored the use of procurement authority by employees 
        designated under section 103 to prevent fraud and abuse.
            (6) Any recommendations of the Comptroller General for 
        improving the effectiveness of the implementation of the 
        provisions of this Act, taking into account the assessment 
        performed under paragraphs (1), (4), and (5).

       TITLE II--GOVERNMENTWIDE TRANSACTION AND PROJECT AUTHORITY

SEC. 201. AUTHORITY TO ENTER INTO CERTAIN PROCUREMENT-RELATED 
              TRANSACTIONS.

    (a) Authority.--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. 317. 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), (f), and (g) of such section.
            ``(2) Applicability to selected executive agencies.--The 
        head of an executive agency may exercise authority under this 
        subsection only if authorized by the Director of the Office of 
        Management and Budget to do so.
    ``(b) 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 an 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.''.
    (b) Clerical Amendment.--The table of sections in section 1(b) of 
such Act is amended by inserting after the item relating to section 316 
the following new item:

        ``Sec. 317. Authority to enter into certain transactions for 
                            defense against, or recovery from, 
                            terrorism or nuclear, biological, chemical, 
                            or radiological attack.''.

SEC. 202. TEMPORARY AUTHORITY FOR CARRYING OUT CERTAIN PROTOTYPE 
              PROJECTS.

    (a) In General.--The head of an executive agency designated by the 
Director of the Office of Management and Budget to do so may, under the 
authority of section 317 of the Federal Property and Administrative 
Services Act of 1949 (as added by subsection (a)), carry out prototype 
projects that meet the requirements of subparagraphs (A) and (B) of 
subsection (a)(1) of such section in accordance with the same 
requirements and conditions as are 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).
    (b) Conforming Authority.--In the application of the requirements 
and conditions of section 845 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note) to the 
administration of authority under subsection (a)--
            (1) subsection (c) of such section shall apply with respect 
        to prototype projects carried out under this subsection; and
            (2) the Director of the Office of Management and Budget 
        shall perform the function of the Secretary of Defense under 
        subsection (d) of such section.

                        TITLE III--OTHER MATTERS

SEC. 301. IDENTIFICATION OF NEW ENTRANTS INTO THE FEDERAL MARKETPLACE.

    The head of each executive agency shall conduct market research on 
an ongoing basis to identify effectively the capabilities, including 
the capabilities of small businesses and new entrants into Federal 
contracting, that are available in the marketplace for meeting the 
requirements of the executive agency in furtherance of defense against, 
or recovery from, terrorism or nuclear, biological, chemical, or 
radiological attack. The head of the executive agency shall, to the 
maximum extent practicable, take advantage of commercially available 
market research methods, including use of commercial databases, to 
carry out the research.