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[111th Congress Public Law 350]
[From the U.S. Government Printing Office]

[[Page 124 STAT. 3677]]

Public Law 111-350
111th Congress

                                 An Act

 
 To enact certain laws relating to public contracts as title 41, United 
    States Code, ``Public Contracts''. <<NOTE: Jan. 4, 2011 -  [H.R. 
                                1107]>> 

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

SECTION 1. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1.  Table of contents.
Sec. 2.  Purpose; conformity with original intent.
Sec. 3.  Enactment of Title 41, United States Code.
Sec. 4.  Conforming amendment.
Sec. 5.  Conforming cross-references.
Sec. 6.  Transitional and savings provisions.
Sec. 7.  Repeals.

SEC. 2. <<NOTE: 41 USC note prec. 101.>>  PURPOSE; CONFORMITY WITH 
            ORIGINAL INTENT.

  (a) Purpose.--The purpose of this Act is to enact certain laws 
relating to public contracts as title 41, United States Code, ``Public 
Contracts''.
  (b) Conformity With Original Intent.--In the codification of laws by 
this Act, the intent is to conform to the understood policy, intent, and 
purpose of Congress in the original enactments, with such amendments and 
corrections as will remove ambiguities, contradictions, and other 
imperfections, in accordance with section 205(c)(1) of House Resolution 
No. 988, 93d Congress, as enacted into law by Public Law 93-554 (2 
U.S.C. 285b(1)).

SEC. 3. <<NOTE: 41 USC note prec. 101.>>  ENACTMENT OF TITLE 41, UNITED 
            STATES CODE.

  Certain general and permanent laws of the United States, related to 
public contracts, are revised, codified, and enacted as title 41, United 
States Code, ``Public Contracts'', as follows:

                       TITLE 41--PUBLIC CONTRACTS

Subtitle                                                            Sec.
            FEDERAL PROCUREMENT POLICY                               101
            OTHER ADVERTISING AND CONTRACT PROVISIONS               6101
            CONTRACT DISPUTES                                       7101
            MISCELLANEOUS                                           8101

                 Subtitle I--Federal Procurement Policy

                           Division A--General

Chapter                                                             Sec.
            Definitions                                              101

[[Page 124 STAT. 3678]]

            Division B--Office of Federal Procurement Policy

            Establishment of Office and Authority and Functions of  1101
                Administrator
            Acquisition Councils                                    1301
            Cost Accounting Standards                               1501
            Agency Responsibilities and Procedures                  1701
            Simplified Acquisition Procedures                       1901
            Restrictions on Obtaining and Disclosing Certain        2101
                Information
            Miscellaneous                                           2301

                         Division C--Procurement

            General                                                 3101
            Planning and Solicitation                               3301
            Truthful Cost or Pricing Data                           3501
            Awarding of Contracts                                   3701
            Specific Types of Contracts                             3901
            Task and Delivery Order Contracts                       4101
            Allowable Costs                                         4301
            Contract Financing                                      4501
            Miscellaneous                                           4701

                           Division A--General

                         CHAPTER 1--DEFINITIONS

                   SUBCHAPTER I--SUBTITLE DEFINITIONS

Sec.
101.  Administrator.
102.  Commercial component.
103.  Commercial item.
104.  Commercially available off-the-shelf item.
105.  Component.
106.  Federal Acquisition Regulation.
107.  Full and open competition.
108.  Item and item of supply.
109.  Major system.
110.  Nondevelopmental item.
111.  Procurement.
112.  Procurement system.
113.  Responsible source.
114.  Standards.
115.  Supplies.
116.  Technical data.

                  SUBCHAPTER II--DIVISION B DEFINITIONS

131.  Acquisition.
132.  Competitive procedures.
133.  Executive agency.
134.  Simplified acquisition threshold.

                 SUBCHAPTER III--DIVISION C DEFINITIONS

151.  Agency head.
152.  Competitive procedures.
153.  Simplified acquisition threshold for contract in support of 
           humanitarian or peacekeeping operation.

                   SUBCHAPTER I--SUBTITLE DEFINITIONS

Sec. 101. Administrator

  In this subtitle, the term ``Administrator'' means the Administrator 
for Federal Procurement Policy appointed under section 1102 of this 
title.

Sec. 102. Commercial component

  In this subtitle, the term ``commercial component'' means a component 
that is a commercial item.

[[Page 124 STAT. 3679]]

Sec. 103. Commercial item

  In this subtitle, the term ``commercial item'' means--
          (1) an item, other than real property, that--
                  (A) is of a type customarily used by the general 
                public or by nongovernmental entities for purposes other 
                than governmental purposes; and
                  (B) has been sold, leased, or licensed, or offered for 
                sale, lease, or license, to the general public;
          (2) an item that--
                  (A) evolved from an item described in paragraph (1) 
                through advances in technology or performance; and
                  (B) is not yet available in the commercial marketplace 
                but will be available in the commercial marketplace in 
                time to satisfy the delivery requirements under a 
                Federal Government solicitation;
          (3) an item that would satisfy the criteria in paragraph (1) 
        or (2) were it not for--
                  (A) modifications of a type customarily available in 
                the commercial marketplace; or
                  (B) minor modifications made to meet Federal 
                Government requirements;
          (4) any combination of items meeting the requirements of 
        paragraph (1), (2), (3), or (5) that are of a type customarily 
        combined and sold in combination to the general public;
          (5) installation services, maintenance services, repair 
        services, training services, and other services if--
                  (A) those services are procured for support of an item 
                referred to in paragraph (1), (2), (3), or (4), 
                regardless of whether the services are provided by the 
                same source or at the same time as the item; and
                  (B) the source of the services provides similar 
                services contemporaneously to the general public under 
                terms and conditions similar to those offered to the 
                Federal Government;
          (6) services offered and sold competitively, in substantial 
        quantities, in the commercial marketplace based on established 
        catalog or market prices for specific tasks performed or 
        specific outcomes to be achieved and under standard commercial 
        terms and conditions;
          (7) any item, combination of items, or service referred to in 
        paragraphs (1) to (6) even though the item, combination of 
        items, or service is transferred between or among separate 
        divisions, subsidiaries, or affiliates of a contractor; or
          (8) a nondevelopmental item if the procuring agency 
        determines, in accordance with conditions in the Federal 
        Acquisition Regulation, that the item was developed exclusively 
        at private expense and has been sold in substantial quantities, 
        on a competitive basis, to multiple State and local governments.

Sec. 104. Commercially available off-the-shelf item

  In this subtitle, the term ``commercially available off-the-shelf 
item''--
          (1) means an item that--
                  (A) is a commercial item (as described in section 
                103(1) of this title);
                  (B) is sold in substantial quantities in the 
                commercial marketplace; and

[[Page 124 STAT. 3680]]

                  (C) is offered to the Federal Government, without 
                modification, in the same form in which it is sold in 
                the commercial marketplace; but
          (2) does not include bulk cargo, as defined in section 
        40102(4) of title 46, such as agricultural products and 
        petroleum products.

Sec. 105. Component

  In this subtitle, the term ``component'' means an item supplied to the 
Federal Government as part of an end item or of another component.

Sec. 106. Federal Acquisition Regulation

  In this subtitle, the term ``Federal Acquisition Regulation'' means 
the regulation issued under section 1303(a)(1) of this title.

Sec. 107. Full and open competition

  In this subtitle, the term ``full and open competition'', when used 
with respect to a procurement, means that all responsible sources are 
permitted to submit sealed bids or competitive proposals on the 
procurement.

Sec. 108. Item and item of supply

  In this subtitle, the terms ``item'' and ``item of supply''--
          (1) mean an individual part, component, subassembly, assembly, 
        or subsystem integral to a major system, and other property 
        which may be replaced during the service life of the system, 
        including spare parts and replenishment spare parts; but
          (2) do not include packaging or labeling associated with 
        shipment or identification of an item.

Sec. 109. Major system

  (a) In General.--In this subtitle, the term ``major system'' means a 
combination of elements that will function together to produce the 
capabilities required to fulfill a mission need. These elements may 
include hardware, equipment, software, or a combination of hardware, 
equipment, and software, but do not include construction or other 
improvements to real property.
  (b) System Deemed To Be Major System.--A system is deemed to be a 
major system if--
          (1) the Department of Defense is responsible for the system 
        and the total expenditures for research, development, testing, 
        and evaluation for the system are estimated to exceed 
        $75,000,000 (based on fiscal year 1980 constant dollars) or the 
        eventual total expenditure for procurement exceeds $300,000,000 
        (based on fiscal year 1980 constant dollars);
          (2) a civilian agency is responsible for the system and total 
        expenditures for the system are estimated to exceed the greater 
        of $750,000 (based on fiscal year 1980 constant dollars) or the 
        dollar threshold for a major system established by the agency 
        pursuant to Office of Management and Budget (OMB) Circular A-
        109, entitled ``Major Systems Acquisitions''; or
          (3) the head of the agency responsible for the system 
        designates the system a major system.

Sec. 110. Nondevelopmental item

  In this subtitle, the term ``nondevelopmental item'' means--

[[Page 124 STAT. 3681]]

          (1) a commercial item;
          (2) a previously developed item of supply that is in use by a 
        department or agency of the Federal Government, a State or local 
        government, or a foreign government with which the United States 
        has a mutual defense cooperation agreement;
          (3) an item of supply described in paragraph (1) or (2) that 
        requires only minor modification or modification of the type 
        customarily available in the commercial marketplace to meet the 
        requirements of the procuring department or agency; or
          (4) an item of supply currently being produced that does not 
        meet the requirements of paragraph (1), (2), or (3) solely 
        because the item is not yet in use.

Sec. 111. Procurement

  In this subtitle, the term ``procurement'' includes all stages of the 
process of acquiring property or services, beginning with the process 
for determining a need for property or services and ending with contract 
completion and closeout.

Sec. 112. Procurement system

  In this subtitle, the term ``procurement system'' means the 
integration of the procurement process, the professional development of 
procurement personnel, and the management structure for carrying out the 
procurement function.

Sec. 113. Responsible source

  In this subtitle, the term ``responsible source'' means a prospective 
contractor that--
          (1) has adequate financial resources to perform the contract 
        or the ability to obtain those resources;
          (2) is able to comply with the required or proposed delivery 
        or performance schedule, taking into consideration all existing 
        commercial and Government business commitments;
          (3) has a satisfactory performance record;
          (4) has a satisfactory record of integrity and business 
        ethics;
          (5) has the necessary organization, experience, accounting and 
        operational controls, and technical skills, or the ability to 
        obtain the organization, experience, controls, and skills;
          (6) has the necessary production, construction, and technical 
        equipment and facilities, or the ability to obtain the equipment 
        and facilities; and
          (7) is otherwise qualified and eligible to receive an award 
        under applicable laws and regulations.

Sec. 114. Standards

  In this subtitle, the term ``standards'' means the criteria for 
determining the effectiveness of the procurement system by measuring the 
performance of the various elements of the system.

Sec. 115. Supplies

  In this subtitle, the term ``supplies'' has the same meaning as the 
terms ``item'' and ``item of supply''.

Sec. 116. Technical data

  In this subtitle, the term ``technical data''--
          (1) means recorded information (regardless of the form or 
        method of the recording) of a scientific or technical nature

[[Page 124 STAT. 3682]]

        (including computer software documentation) relating to supplies 
        procured by an agency; but
          (2) does not include computer software or financial, 
        administrative, cost or pricing, or management data or other 
        information incidental to contract administration.

                  SUBCHAPTER II--DIVISION B DEFINITIONS

Sec. 131. Acquisition

  In division B, the term ``acquisition''--
          (1) means the process of acquiring, with appropriated amounts, 
        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
          (2) includes--
                  (A) the process of acquiring property or services that 
                are already in existence, or that must be created, 
                developed, demonstrated, and evaluated;
                  (B) the description of requirements to satisfy agency 
                needs;
                  (C) solicitation and selection of sources;
                  (D) award of contracts;
                  (E) contract performance;
                  (F) contract financing;
                  (G) management and measurement of contract performance 
                through final delivery and payment; and
                  (H) technical and management functions directly 
                related to the process of fulfilling agency requirements 
                by contract.

Sec. 132. Competitive procedures

  In division B, the term ``competitive procedures'' means procedures 
under which an agency enters into a contract pursuant to full and open 
competition.

Sec. 133. Executive agency

  In division B, the term ``executive agency'' means--
          (1) an executive department specified in section 101 of title 
        5;
          (2) a military department specified in section 102 of title 5;
          (3) an independent establishment as defined in section 104(1) 
        of title 5; and
          (4) a wholly owned Government corporation fully subject to 
        chapter 91 of title 31.

Sec. 134. Simplified acquisition threshold

  In division B, the term ``simplified acquisition threshold'' means 
$100,000.

                 SUBCHAPTER III--DIVISION C DEFINITIONS

Sec. 151. Agency head

  In division C, the term ``agency head'' means the head or any 
assistant head of an executive agency, and may at the option of the 
Administrator of General Services include the chief official

[[Page 124 STAT. 3683]]

of any principal organizational unit of the General Services 
Administration.

Sec. 152. Competitive procedures

  In division C, the term ``competitive procedures'' means procedures 
under which an executive agency enters into a contract pursuant to full 
and open competition. The term also includes--
          (1) procurement of architectural or engineering services 
        conducted in accordance with chapter 11 of title 40;
          (2) the competitive selection of basic research proposals 
        resulting from a general solicitation and the peer review or 
        scientific review (as appropriate) of those proposals;
          (3) the procedures established by the Administrator of General 
        Services for the multiple awards schedule program of the General 
        Services Administration if--
                  (A) participation in the program has been open to all 
                responsible sources; and
                  (B) orders and contracts under those procedures result 
                in the lowest overall cost alternative to meet the needs 
                of the Federal Government;
          (4) procurements conducted in furtherance of section 15 of the 
        Small Business Act (15 U.S.C. 644) as long as all responsible 
        business concerns that are entitled to submit offers for those 
        procurements are permitted to compete; and
          (5) a competitive selection of research proposals resulting 
        from a general solicitation and peer review or scientific review 
        (as appropriate) solicited pursuant to section 9 of that Act (15 
        U.S.C. 638).

Sec. 153. Simplified acquisition threshold for contract in support of 
                        humanitarian or peacekeeping operation

  (1) In general.--In division C, the term ``simplified acquisition 
threshold'' has the meaning provided that term in section 134 of this 
title, except that, in the case of a contract to be awarded and 
performed, or purchase to be made, outside the United States in support 
of a humanitarian or peacekeeping operation, the term means an amount 
equal to two times the amount specified for that term in section 134 of 
this title.
  (2) Definition.--In paragraph (1), the term ``humanitarian or 
peacekeeping operation'' means a military operation in support of the 
provision of humanitarian or foreign disaster assistance or in support 
of a peacekeeping operation under chapter VI or VII of the Charter of 
the United Nations. The term does not include routine training, force 
rotation, or stationing.

            Division B--Office of Federal Procurement Policy

   CHAPTER 11--ESTABLISHMENT OF OFFICE AND AUTHORITY AND FUNCTIONS OF 
                              ADMINISTRATOR

                          SUBCHAPTER I--GENERAL

Sec.
1101.  Office of Federal Procurement Policy.
1102.  Administrator.

       SUBCHAPTER II--AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR

1121.  General authority.
1122.  Functions.
1123.  Small business concerns.

[[Page 124 STAT. 3684]]

1124.  Tests of innovative procurement methods and procedures.
1125.  Recipients of Federal grants or assistance.
1126.  Policy regarding consideration of contractor past performance.
1127.  Determining benchmark compensation amount.
1128.  Maintaining necessary capability with respect to acquisition of 
           architectural and engineering services.
1129.  Center of excellence in contracting for services.
1130.  Effect of division on other law.
1131.  Annual report.

                          SUBCHAPTER I--GENERAL

Sec. 1101. Office of Federal Procurement Policy

  (a) Organization.--There is an Office of Federal Procurement Policy in 
the Office of Management and Budget.
  (b) Purposes.--The purposes of the Office of Federal Procurement 
Policy are to--
          (1) provide overall direction of Government-wide procurement 
        policies, regulations, procedures, and forms for executive 
        agencies; and
          (2) promote economy, efficiency, and effectiveness in the 
        procurement of property and services by the executive branch of 
        the Federal Government.

  (c) Authorization of Appropriations.--Necessary amounts may be 
appropriated each fiscal year for the Office of Federal Procurement 
Policy to carry out the responsibilities of the Office for that fiscal 
year.

Sec. 1102. Administrator

  (a) Head of Office.--The head of the Office of Federal Procurement 
Policy is the Administrator for Federal Procurement Policy.
  (b) Appointment.--The Administrator is appointed by the President, by 
and with the advice and consent of the Senate.

       SUBCHAPTER II--AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR

Sec. 1121. General authority

  (a) Overall Direction and Leadership.--The Administrator shall provide 
overall direction of procurement policy and leadership in the 
development of procurement systems of the executive agencies.
  (b) Federal Acquisition Regulation.--To the extent that the 
Administrator considers appropriate in carrying out the policies and 
functions set forth in this division, and with due regard for applicable 
laws and the program activities of the executive agencies, the 
Administrator may prescribe Government-wide procurement policies. The 
policies shall be implemented in a single Government-wide procurement 
regulation called the Federal Acquisition Regulation.
  (c) Policies To Be Followed by Executive Agencies.--
          (1) Areas of procurement for which policies are to be 
        followed.--The policies implemented in the Federal Acquisition 
        Regulation shall be followed by executive agencies in the 
        procurement of--
                  (A) property other than real property in being;
                  (B) services, including research and development; and
                  (C) construction, alteration, repair, or maintenance 
                of real property.

[[Page 124 STAT. 3685]]

          (2) Procedures to ensure compliance.--The Administrator shall 
        establish procedures to ensure compliance with the Federal 
        Acquisition Regulation by all executive agencies.
          (3) Application of other laws.--The authority of an executive 
        agency under another law to prescribe policies, regulations, 
        procedures, and forms for procurement is subject to the 
        authority conferred in this section and sections 1122(a) to 
        (c)(1), 1125, 1126, 1130, 1131, and 2305 of this title.

  (d) When Certain Agencies Are Unable To Agree or Fail To Act.--In any 
instance in which the Administrator determines that the Department of 
Defense, the National Aeronautics and Space Administration, and the 
General Services Administration are unable to agree on or fail to issue 
Government-wide regulations, procedures, and forms in a timely manner, 
including regulations, procedures, and forms necessary to implement 
prescribed policy the Administrator initiates under subsection (b), the 
Administrator, with due regard for applicable laws and the program 
activities of the executive agencies and consistent with the policies 
and functions set forth in this division, shall prescribe Government-
wide regulations, procedures, and forms which executive agencies shall 
follow in procuring items listed in subsection (c)(1).
  (e) Oversight of Procurement Regulations of Other Agencies.--The 
Administrator, with the concurrence of the Director of the Office of 
Management and Budget, and with consultation with the head of the agency 
concerned, may deny the promulgation of or rescind any Government-wide 
regulation or final rule or regulation of any executive agency relating 
to procurement if the Administrator determines that the rule or 
regulation is inconsistent with any policies, regulations, or procedures 
issued pursuant to subsection (b).
  (f) Limitation on Authority.--The authority of the Administrator under 
this division shall not be construed to--
          (1) impair or interfere with the determination by executive 
        agencies of their need for, or their use of, specific property, 
        services, or construction, including particular specifications 
        for the property, services, or construction; or
          (2) interfere with the determination by executive agencies of 
        specific actions in the award or administration of procurement 
        contracts.

Sec. 1122. Functions

  (a) In General.--The functions of the Administrator include--
          (1) providing leadership and ensuring action by the executive 
        agencies in establishing, developing, and maintaining the single 
        system of simplified Government-wide procurement regulations and 
        resolving differences among the executive agencies in developing 
        simplified Government-wide procurement regulations, procedures, 
        and forms;
          (2) coordinating the development of Government-wide 
        procurement system standards that executive agencies shall 
        implement in their procurement systems;
          (3) providing leadership and coordination in formulating the 
        executive branch position on legislation relating to 
        procurement;
          (4)(A) providing for and directing the activities of the 
        computer-based Federal Procurement Data System (including 
        recommending to the Administrator of General Services a 
        sufficient budget for those activities), which shall be located 
        in

[[Page 124 STAT. 3686]]

        the General Services Administration, in order to adequately 
        collect, develop, and disseminate procurement data; and
          (B) ensuring executive agency compliance with the record 
        requirements of section 1712 of this title;
          (5) providing for and directing the activities of the Federal 
        Acquisition Institute (including recommending to the 
        Administrator of General Services a sufficient budget for those 
        activities), which shall be located in the General Services 
        Administration, in order to--
                  (A) foster and promote the development of a 
                professional acquisition workforce Government-wide;
                  (B) promote and coordinate Government-wide research 
                and studies to improve the procurement process and the 
                laws, policies, methods, regulations, procedures, and 
                forms relating to acquisition by the executive agencies;
                  (C) collect data and analyze acquisition workforce 
                data from the Office of Personnel Management, from the 
                heads of executive agencies, and, through periodic 
                surveys, from individual employees;
                  (D) periodically analyze acquisition career fields to 
                identify critical competencies, duties, tasks, and 
                related academic prerequisites, skills, and knowledge;
                  (E) coordinate and assist agencies in identifying and 
                recruiting highly qualified candidates for acquisition 
                fields;
                  (F) develop instructional materials for acquisition 
                personnel in coordination with private and public 
                acquisition colleges and training facilities;
                  (G) evaluate the effectiveness of training and career 
                development programs for acquisition personnel;
                  (H) promote the establishment and utilization of 
                academic programs by colleges and universities in 
                acquisition fields;
                  (I) facilitate, to the extent requested by agencies, 
                interagency intern and training programs; and
                  (J) perform other career management or research 
                functions as directed by the Administrator;
          (6) administering section 1703(a) to (i) of this title;
          (7) establishing criteria and procedures to ensure the 
        effective and timely solicitation of the viewpoints of 
        interested parties in the development of procurement policies, 
        regulations, procedures, and forms;
          (8) developing standard contract forms and contract language 
        in order to reduce the Federal Government's cost of procuring 
        property and services and the private sector's cost of doing 
        business with the Federal Government;
          (9) providing for a Government-wide award to recognize and 
        promote vendor excellence;
          (10) providing for a Government-wide award to recognize and 
        promote excellence in officers and employees of the Federal 
        Government serving in procurement-related positions;
          (11) developing policies, in consultation with the 
        Administrator of the Small Business Administration, that ensure 
        that small businesses, qualified HUBZone small business concerns 
        (as defined in section 3(p) of the Small Business Act (15 U.S.C. 
        632(p))), small businesses owned and controlled by socially and 
        economically disadvantaged individuals, and small businesses 
        owned and controlled by women are provided with the maximum 
        practicable opportunities to participate in procurements

[[Page 124 STAT. 3687]]

        that are conducted for amounts below the simplified acquisition 
        threshold;
          (12) developing policies that will promote achievement of 
        goals for participation by small businesses, small business 
        concerns owned and controlled by service-disabled veterans, 
        qualified HUBZone small business concerns (as defined in section 
        3(p) of the Small Business Act (15 U.S.C. 632(p))), small 
        businesses owned and controlled by socially and economically 
        disadvantaged individuals, and small businesses owned and 
        controlled by women; and
          (13) completing action, as appropriate, on the recommendations 
        of the Commission on Government Procurement.

  (b) Consultation and Assistance.--In carrying out the functions in 
subsection (a), the Administrator--
          (1) shall consult with the affected executive agencies, 
        including the Small Business Administration;
          (2) with the concurrence of the heads of affected executive 
        agencies, may designate one or more executive agencies to assist 
        in performing those functions; and
          (3) may establish advisory committees or other interagency 
        groups to assist in providing for the establishment, 
        development, and maintenance of a single system of simplified 
        Government-wide procurement regulations and to assist in 
        performing any other function the Administrator considers 
        appropriate.

  (c) Assignment, Delegation, or Transfer.--
          (1) To administrator.--Except as otherwise provided by law, 
        only duties, functions, or responsibilities expressly assigned 
        by this division shall be assigned, delegated, or transferred to 
        the Administrator.
          (2) By administrator.--
                  (A) Within office.--The Administrator may make and 
                authorize delegations within the Office of Federal 
                Procurement Policy that the Administrator determines to 
                be necessary to carry out this division.
                  (B) To another executive agency.--The Administrator 
                may delegate, and authorize successive redelegations of, 
                an authority, function, or power of the Administrator 
                under this division (other than the authority to provide 
                overall direction of Federal procurement policy and to 
                prescribe policies and regulations to carry out the 
                policy) to another executive agency with the consent of 
                the head of the executive agency or at the direction of 
                the President.

Sec. 1123. Small business concerns

  In formulating the Federal Acquisition Regulation and procedures to 
ensure compliance with the Regulation, the Administrator, in 
consultation with the Small Business Administration, shall--
          (1) conduct analyses of the impact on small business concerns 
        resulting from revised procurement regulations; and
          (2) incorporate into revised procurement regulations 
        simplified bidding, contract performance, and contract 
        administration procedures for small business concerns.

[[Page 124 STAT. 3688]]

Sec. 1124. Tests of innovative procurement methods and procedures

  (a) In General.--The Administrator may develop innovative procurement 
methods and procedures to be tested by selected executive agencies. In 
developing a program to test innovative procurement methods and 
procedures under this subsection, the Administrator shall consult with 
the heads of executive agencies to--
          (1) ascertain the need for and specify the objectives of the 
        program;
          (2) develop the guidelines and procedures for carrying out the 
        program and the criteria to be used in measuring the success of 
        the program;
          (3) evaluate the potential costs and benefits which may be 
        derived from the innovative procurement methods and procedures 
        tested under the program;
          (4) select the appropriate executive agencies or components of 
        executive agencies to carry out the program;
          (5) specify the categories and types of products or services 
        to be procured under the program; and
          (6) develop the methods to be used to analyze the results of 
        the program.

  (b) Approval of Executive Agencies Required.--A program to test 
innovative procurement methods and procedures may not be carried out 
unless approved by the heads of the executive agencies selected to carry 
out the program.
  (c) Request for Waiver of Law.--If the Administrator determines that 
it is necessary to waive the application of a provision of law to carry 
out a proposed program to test innovative procurement methods and 
procedures under subsection (a), the Administrator shall transmit notice 
of the proposed program to the Committee on Oversight and Government 
Reform of the House of Representatives and the Committee on Homeland 
Security and Governmental Affairs of the Senate and request that the 
Committees take the necessary action to provide that the provision of 
law does not apply with respect to the proposed program. The 
notification to Congress shall include--
          (1) a description of the proposed program (including the scope 
        and purpose of the proposed program);
          (2) the procedures to be followed in carrying out the proposed 
        program;
          (3) the provisions of law affected and the application of any 
        provision of law that must be waived in order to carry out the 
        proposed program; and
          (4) the executive agencies involved in carrying out the 
        proposed program.

Sec. 1125. Recipients of Federal grants or assistance

  (a) Authority.--With due regard to applicable laws and the program 
activities of the executive agencies administering Federal programs of 
grants or assistance, the Administrator may prescribe Government-wide 
policies, regulations, procedures, and forms that the Administrator 
considers appropriate and that executive agencies shall follow in 
providing for the procurement, to the extent required under those 
programs, of property or services referred to in section 1121(c)(1) of 
this title by recipients of Federal grants or assistance under the 
programs.
  (b) Limitation.--Subsection (a) does not--

[[Page 124 STAT. 3689]]

          (1) permit the Administrator to authorize procurement or 
        supply support, either directly or indirectly, to a recipient of 
        a Federal grant or assistance; or
          (2) authorize action by a recipient contrary to State and 
        local law in the case of a program to provide a Federal grant or 
        assistance to a State or political subdivision.

Sec. 1126. Policy regarding consideration of contractor past performance

  (a) Guidance.--The Administrator shall prescribe for executive 
agencies guidance regarding consideration of the past contract 
performance of offerors in awarding contracts. The guidance shall 
include--
          (1) 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;
          (2) policies for the collection and maintenance of information 
        on past contract performance that, to the maximum extent 
        practicable, facilitate automated collection, maintenance, and 
        dissemination of information and provide for ease of collection, 
        maintenance, and dissemination of information by other methods, 
        as necessary;
          (3) policies for ensuring that--
                  (A) offerors are afforded an opportunity to submit 
                relevant information on past contract performance, 
                including performance under contracts entered into by 
                the executive agency concerned, other departments and 
                agencies of the Federal Government, agencies of State 
                and local governments, and commercial customers; and
                  (B) the information submitted by offerors is 
                considered; and
          (4) the period for which information on past performance of 
        offerors may be maintained and considered.

  (b) Information Not Available.--If there is no information on past 
contract performance of an offeror or the 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. 1127. Determining benchmark compensation amount

  (a) Definitions.--In this section:
          (1) Benchmark compensation amount.--The term ``benchmark 
        compensation amount'', for a fiscal year, is the median amount 
        of the compensation provided for all senior executives of all 
        benchmark corporations for the most recent year for which data 
        is available at the time the determination under subsection (b) 
        is made.
          (2) Benchmark corporation.--The term ``benchmark 
        corporation'', with respect to a fiscal year, means a publicly-
        owned United States corporation that has annual sales in excess 
        of $50,000,000 for the fiscal year.
          (3) Compensation.--The term ``compensation'', for a fiscal 
        year, means the total amount of wages, salary, bonuses, and 
        deferred compensation for the fiscal year, whether paid, earned, 
        or otherwise accruing, as recorded in an employer's cost 
        accounting records for the fiscal year.

[[Page 124 STAT. 3690]]

          (4) Fiscal year.--The term ``fiscal year'' means a fiscal year 
        a contractor establishes for accounting purposes.
          (5) Publicly-owned united states corporation.--The term 
        ``publicly-owned United States corporation'' means a 
        corporation--
                  (A) organized under the laws of a State of the United 
                States, the District of Columbia, Puerto Rico, or a 
                possession of the United States; and
                  (B) whose voting stock is publicly traded.
          (6) Senior executives.--The term ``senior executives'', with 
        respect to a contractor, means the 5 most highly compensated 
        employees in management positions at each home office and each 
        segment of the contractor.

  (b) Determining Benchmark Compensation Amount.--For purposes of 
section 4304(a)(16) of this title and section 2324(e)(1)(P) of title 10, 
the Administrator shall review commercially available surveys of 
executive compensation and, on the basis of the results of the review, 
determine a benchmark compensation amount to apply for each fiscal year. 
In making determinations under this subsection, the Administrator shall 
consult with the Director of the Defense Contract Audit Agency and other 
officials of executive agencies as the Administrator considers 
appropriate.

Sec. 1128. Maintaining necessary capability with respect to acquisition 
                        of architectural and engineering services

  The Administrator, 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 those 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 those services.

Sec. 1129. Center of excellence in contracting for services

  The Administrator shall maintain a center of excellence in contracting 
for services. The center 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.

Sec. 1130. Effect of division on other law

  This division does not impair or affect the authorities or 
responsibilities relating to the procurement of real property conferred 
by division C of this subtitle and chapters 1 to 11 of title 40.

Sec. 1131. Annual report

  The Administrator annually shall submit to Congress an assessment of 
the progress made in executive agencies in implementing the policy 
regarding major acquisitions that is stated in section 3103(a) of this 
title. The Administrator shall use data from existing management systems 
in making the assessment.

[[Page 124 STAT. 3691]]

                    CHAPTER 13--ACQUISITION COUNCILS

          SUBCHAPTER I--FEDERAL ACQUISITION REGULATORY COUNCIL

Sec.
1301.  Definition.
1302.  Establishment and membership.
1303.  Functions and authority.
1304.  Contract clauses and certifications.

            SUBCHAPTER II--CHIEF ACQUISITION OFFICERS COUNCIL

1311.  Establishment and membership.
1312.  Functions.

          SUBCHAPTER I--FEDERAL ACQUISITION REGULATORY COUNCIL

Sec. 1301. Definition

  In this subchapter, the term ``Council'' means the Federal Acquisition 
Regulatory Council established under section 1302(a) of this title.

Sec. 1302. Establishment and membership

  (a) Establishment.--There is a Federal Acquisition Regulatory Council 
to assist in the direction and coordination of Government-wide 
procurement policy and Government-wide procurement regulatory activities 
in the Federal Government.
  (b) Membership.--
          (1) Makeup of council.--The Council consists of--
                  (A) the Administrator;
                  (B) the Secretary of Defense;
                  (C) the Administrator of National Aeronautics and 
                Space; and
                  (D) the Administrator of General Services.
          (2) Designation of other officials.--
                  (A) Officials who may be designated.--Notwithstanding 
                section 121(d)(1) and (2) of title 40, the officials 
                specified in subparagraphs (B) to (D) of paragraph (1) 
                may designate to serve on and attend meetings of the 
                Council in place of that official--
                        (i) the official assigned by statute with the 
                      responsibility for acquisition policy in each of 
                      their respective agencies or, in the case of the 
                      Secretary of Defense, an official at an 
                      organizational level not lower than an Assistant 
                      Secretary of Defense within the Office of the 
                      Under Secretary of Defense for Acquisition, 
                      Technology, and Logistics; or
                        (ii) if no official of that agency is assigned 
                      by statute with the responsibility for acquisition 
                      policy for that agency, the official designated 
                      pursuant to section 1702(c) of this title.
                  (B) Limitation on designation.--No other official or 
                employee may be designated to serve on the Council.

Sec. 1303. Functions and authority

  (a) Functions.--
          (1) Issue and maintain federal acquisition regulation.--
        Subject to sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 
        1131, and 2305 of this title, the Administrator of General 
        Services, the Secretary of Defense, and the Administrator of

[[Page 124 STAT. 3692]]

        National Aeronautics and Space, pursuant to their respective 
        authorities under division C of this subtitle, chapters 4 and 
        137 of title 10, and the National Aeronautics and Space Act of 
        1958 (42 U.S.C. 2451 et seq.), shall jointly issue and maintain 
        in accordance with subsection (d) a single Government-wide 
        procurement regulation, to be known as the Federal Acquisition 
        Regulation.
          (2) Limitation on other regulations.--Other regulations 
        relating to procurement issued by an executive agency shall be 
        limited to--
                  (A) regulations essential to implement Government-wide 
                policies and procedures within the agency; and
                  (B) additional policies and procedures required to 
                satisfy the specific and unique needs of the agency.
          (3) Ensure consistent regulations.--The Administrator, in 
        consultation with the Council, shall ensure that procurement 
        regulations prescribed by executive agencies are consistent with 
        the Federal Acquisition Regulation and in accordance with the 
        policies prescribed pursuant to section 1121(b) of this title.
          (4) Request to review regulation.--
                  (A) Basis for request.--Under procedures the 
                Administrator establishes, a person may request the 
                Administrator to review a regulation relating to 
                procurement on the basis that the regulation is 
                inconsistent with the Federal Acquisition Regulation.
                  (B) Period of review.--Unless the request is frivolous 
                or does not, on its face, state a valid basis for the 
                review, the Administrator shall complete the review not 
                later than 60 days after receiving the request. The time 
                for completion of the review may be extended if the 
                Administrator determines that an additional period of 
                review is required. The Administrator shall advise the 
                requester of the reasons for the extension and the date 
                by which the review will be completed.
          (5) When regulation is inconsistent or needs to be improved.--
        If the Administrator determines that a regulation relating to 
        procurement is inconsistent with the Federal Acquisition 
        Regulation or that the regulation otherwise should be revised to 
        remove an inconsistency with the policies prescribed under 
        section 1121(b) of this title, the Administrator shall rescind 
        or deny the promulgation of the regulation or take other action 
        authorized under sections 1121, 1122(a) to (c)(1), 1125, 1126, 
        1130, 1131, and 2305 of this title as may be necessary to remove 
        the inconsistency. If the Administrator determines that the 
        regulation, although not inconsistent with the Federal 
        Acquisition Regulation or those policies, should be revised to 
        improve compliance with the Regulation or policies, the 
        Administrator shall take action authorized under sections 1121, 
        1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 2305 as may be 
        necessary and appropriate.
          (6) Decisions to be in writing and publicly available.--The 
        decisions of the Administrator shall be in writing and made 
        publicly available.

  (b) Additional Responsibilities of Membership.--
          (1) In general.--Subject to the authority, direction, and 
        control of the head of the agency concerned, each official who 
        represents an agency on the Council pursuant to section 1302(b) 
        of this title shall--

[[Page 124 STAT. 3693]]

                  (A) approve or disapprove all regulations relating to 
                procurement that are proposed for public comment, 
                prescribed in final form, or otherwise made effective by 
                that agency before the regulation may be prescribed in 
                final form, or otherwise made effective, except that the 
                official may grant an interim approval, without review, 
                for not more than 60 days for a procurement regulation 
                in urgent and compelling circumstances;
                  (B) carry out the responsibilities of that agency set 
                forth in chapter 35 of title 44 for each information 
                collection request that relates to procurement rules or 
                regulations; and
                  (C) eliminate or reduce--
                        (i) any redundant or unnecessary levels of 
                      review and approval in the procurement system of 
                      that agency; and
                        (ii) redundant or unnecessary procurement 
                      regulations which are unique to that agency.
          (2) Limitation on delegation.--The authority to review and 
        approve or disapprove regulations under paragraph (1)(A) may not 
        be delegated to an individual outside the office of the official 
        who represents the agency on the Council pursuant to section 
        1302(b) of this title.

  (c) Governing Policies.--All actions of the Council and of members of 
the Council shall be in accordance with and furtherance of the policies 
prescribed under section 1121(b) of this title.
  (d) General Authority With Respect to Federal Acquisition 
Regulation.--Subject to section 1121(d) of this title, the Council shall 
manage, coordinate, control, and monitor the maintenance of, issuance 
of, and changes in, the Federal Acquisition Regulation.

Sec. 1304. Contract clauses and certifications

  (a) Repetitive Nonstandard Contract Clauses Discouraged.--The Council 
shall prescribe regulations to discourage the use of a nonstandard 
contract clause on a repetitive basis. The regulations shall include 
provisions that--
          (1) clearly define what types of contract clauses are to be 
        treated as nonstandard clauses; and
          (2) require prior approval for the use of a nonstandard clause 
        on a repetitive basis by an official at a level of 
        responsibility above the contracting officer.

  (b) When Certification Required.--
          (1) By law.--A provision of law may not be construed as 
        requiring a certification by a contractor or offeror in a 
        procurement made or to be made by the Federal Government unless 
        that provision of law specifically provides that such a 
        certification shall be required.
          (2) In federal acquisition regulation.--A requirement for a 
        certification by a contractor or offeror may not be included in 
        the Federal Acquisition Regulation unless--
                  (A) the certification requirement is specifically 
                imposed by statute; or
                  (B) written justification for the certification 
                requirement is provided to the Administrator by the 
                Council and the Administrator approves in writing the 
                inclusion of the certification requirement.
          (3) Executive agency procurement regulation.--

[[Page 124 STAT. 3694]]

                  (A) Definition.--In subparagraph (B), the term ``head 
                of the executive agency'' with respect to a military 
                department means the Secretary of Defense.
                  (B) When certification requirement may be included in 
                regulation.--A requirement for a certification by a 
                contractor or offeror may not be included in a 
                procurement regulation of an executive agency unless--
                        (i) the certification requirement is 
                      specifically imposed by statute; or
                        (ii) written justification for the certification 
                      requirement is provided to the head of the 
                      executive agency by the senior procurement 
                      executive of the agency and the head of the 
                      executive agency approves in writing the inclusion 
                      of the certification requirement.

            SUBCHAPTER II--CHIEF ACQUISITION OFFICERS COUNCIL

Sec. 1311. Establishment and membership

  (a) Establishment.--There is in the executive branch a Chief 
Acquisition Officers Council.
  (b)  Membership.--The members of the Council are--
          (1) the Deputy Director for Management of the Office of 
        Management and Budget;
          (2) the Administrator;
          (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 1702 of this title and the senior procurement executive 
        of each military department; and
          (5) any other senior agency officer of each executive agency, 
        appointed by the head of the agency in consultation with the 
        Chairman of the Council, who can effectively assist the Council 
        in performing the functions set forth in section 1312(b) of this 
        title and supporting the associated range of acquisition 
        activities.

  (c) Leadership and Support.--
          (1) Chairman.--The Deputy Director for Management of the 
        Office of Management and Budget is the Chairman of the Council.
          (2) Vice chairman.--The Vice Chairman of the Council shall be 
        selected by the Council from among its members. The Vice 
        Chairman serves for one year and may serve multiple terms.
          (3) Leader of activities.--The Administrator shall lead the 
        activities of the Council on behalf of the Deputy Director for 
        Management.
          (4) Support.--The Administrator of General Services shall 
        provide administrative and other support for the Council.

Sec. 1312. Functions

  (a) Principal Forum.--The Chief Acquisition Officers Council is the 
principal interagency forum for monitoring and improving the Federal 
acquisition system.
  (b) 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.

[[Page 124 STAT. 3695]]

          (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.

                  CHAPTER 15--COST ACCOUNTING STANDARDS

Sec.
1501.  Cost Accounting Standards Board.
1502.  Cost accounting standards.
1503.  Contract price adjustment.
1504.  Effect on other standards and regulations.
1505.  Examinations.
1506.  Authorization of appropriations.

Sec. 1501. Cost Accounting Standards Board

  (a) Organization.--The Cost Accounting Standards Board is an 
independent board in the Office of Federal Procurement Policy.
  (b) Membership.--
          (1) Number of members, chairman, and appointment.--The Board 
        consists of 5 members. One member is the Administrator, who 
        serves as Chairman. The other 4 members, all of whom shall have 
        experience in Federal Government contract cost accounting, are 
        as follows:
                  (A) 2 representatives of the Federal Government--
                        (i) one of whom is a representative of the 
                      Department of Defense appointed by the Secretary 
                      of Defense; and
                        (ii) one of whom is an officer or employee of 
                      the General Services Administration appointed by 
                      the Administrator of General Services.
                  (B) 2 individuals from the private sector, each of 
                whom is appointed by the Administrator, and--
                        (i) one of whom is a representative of industry; 
                      and
                        (ii) one of whom is particularly knowledgeable 
                      about cost accounting problems and systems.
          (2) Term of office.--
                  (A) Length of term.--The term of office of each 
                member, other than the Administrator, is 4 years. The 
                terms are staggered, with the terms of 2 members 
                expiring in the same year, the term of another member 
                expiring the next year, and the term of the last member 
                expiring the year after that.
                  (B) Individual required to remain with appointing 
                agency.--A member appointed under paragraph (1)(A) may 
                not continue to serve after ceasing to be an officer or 
                employee of the agency from which that member was 
                appointed.

[[Page 124 STAT. 3696]]

          (3) Vacancy.--A vacancy on the Board shall be filled in the 
        same manner in which the original appointment was made. A member 
        appointed to fill a vacancy serves for the remainder of the term 
        for which that member's predecessor was appointed.

  (c) Senior Staff.--The Administrator, after consultation with the 
Board, may--
          (1) appoint an executive secretary and 2 additional staff 
        members without regard to the provisions of title 5 governing 
        appointments in the competitive service; and
          (2) pay those employees without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of title 5 relating 
        to classification and General Schedule pay rates, except that 
        those employees may not receive pay in excess of the maximum 
        rate of basic pay payable for level IV of the Executive 
        Schedule.

  (d) Other Staff.--The Administrator may appoint, fix the compensation 
of, and remove additional employees of the Board under the applicable 
provisions of title 5.
  (e) Detailed and Temporary Personnel.--For service on advisory 
committees and task forces to assist the Board in carrying out its 
functions and responsibilities--
          (1) the Board, with the consent of the head of a Federal 
        agency, may use, without reimbursement, personnel of that 
        agency; and
          (2) the Administrator, after consultation with the Board, may 
        procure temporary and intermittent services of personnel under 
        section 3109(b) of title 5.

  (f) Compensation.--
          (1) Officers and employees of the government.--Members of the 
        Board who are officers or employees of the Federal Government, 
        and officers and employees of other agencies of the Federal 
        Government who are used under subsection (e)(1), shall not 
        receive additional compensation for services but shall continue 
        to be compensated by the employing department or agency of the 
        officer or employee.
          (2) Appointees from private sector.--Each member of the Board 
        appointed from the private sector shall receive compensation at 
        a rate not to exceed the daily equivalent of the rate for level 
        IV of the Executive Schedule for each day (including travel 
        time) in which the member is engaged in the actual performance 
        of duties vested in the Board.
          (3) Temporary and intermittent personnel.--An individual hired 
        under subsection (e)(2) may receive compensation at a rate fixed 
        by the Administrator, but not to exceed the daily equivalent of 
        the rate for level V of the Executive Schedule for each day 
        (including travel time) in which the individual is properly 
        engaged in the actual performance of duties under this chapter.
          (4) Travel expenses.--While serving away from home or regular 
        place of business, Board members and other individuals serving 
        on an intermittent basis under this chapter shall be allowed 
        travel expenses in accordance with section 5703 of title 5.

Sec. 1502. Cost accounting standards

  (a) Authority.--
          (1) Cost accounting standards board.--The Cost Accounting 
        Standards Board has exclusive authority to prescribe, amend, and 
        rescind cost accounting standards, and

[[Page 124 STAT. 3697]]

        interpretations of the standards, designed to achieve uniformity 
        and consistency in the cost accounting standards governing 
        measurement, assignment, and allocation of costs to contracts 
        with the Federal Government.
          (2) Administrator for federal procurement policy.--The 
        Administrator, after consultation with the Board, shall 
        prescribe rules and procedures governing actions of the Board 
        under this chapter. The rules and procedures shall require that 
        any action to prescribe, amend, or rescind a standard or 
        interpretation be approved by majority vote of the Board.

  (b) Mandatory Use of Standards.--
          (1) Subcontract.--
                  (A) Definition.--In this paragraph, the term 
                ``subcontract'' includes a transfer of commercial items 
                between divisions, subsidiaries, or affiliates of a 
                contractor or subcontractor.
                  (B) When standards are to be used.--Cost accounting 
                standards prescribed under this chapter are mandatory 
                for use by all executive agencies and by contractors and 
                subcontractors in estimating, accumulating, and 
                reporting costs in connection with the pricing and 
                administration of, and settlement of disputes 
                concerning, all negotiated prime contract and 
                subcontract procurements with the Federal Government in 
                excess of the amount set forth in section 
                2306a(a)(1)(A)(i) of title 10 as the amount is adjusted 
                in accordance with applicable requirements of law.
                  (C) Nonapplication of standards.--Subparagraph (B) 
                does not apply to--
                        (i) a contract or subcontract for the 
                      acquisition of a commercial item;
                        (ii) a contract or subcontract where the price 
                      negotiated is based on a price set by law or 
                      regulation;
                        (iii) a firm, fixed-price contract or 
                      subcontract awarded on the basis of adequate price 
                      competition without submission of certified cost 
                      or pricing data; or
                        (iv) a contract or subcontract with a value of 
                      less than $7,500,000 if, when the contract or 
                      subcontract is entered into, the segment of the 
                      contractor or subcontractor that will perform the 
                      work has not been awarded at least one contract or 
                      subcontract with a value of more than $7,500,000 
                      that is covered by the standards.
          (2) Exemptions and waivers by board.--The Board may--
                  (A) exempt classes of contractors and subcontractors 
                from the requirements of this chapter; and
                  (B) establish procedures for the waiver of the 
                requirements of this chapter for individual contracts 
                and subcontracts.
          (3) Waiver by head of executive agency.--
                  (A) In general.--The head of an executive agency may 
                waive the applicability of the cost accounting standards 
                for a contract or subcontract with a value of less than 
                $15,000,000 if that official determines in writing that 
                the segment of the contractor or subcontractor that will 
                perform the work--
                        (i) is primarily engaged in the sale of 
                      commercial items; and

[[Page 124 STAT. 3698]]

                        (ii) would not otherwise be subject to the cost 
                      accounting standards under this section.
                  (B) In exceptional circumstances.--The head of an 
                executive agency may waive the applicability of the cost 
                accounting standards for a contract or subcontract under 
                exceptional circumstances when necessary to meet the 
                needs of the agency. A determination to waive the 
                applicability of the standards under this subparagraph 
                shall be set forth in writing and shall include a 
                statement of the circumstances justifying the waiver.
                  (C) Restriction on delegation of authority.--The head 
                of an executive agency may not delegate the authority 
                under subparagraph (A) or (B) to an official in the 
                executive agency below the senior policymaking level in 
                the executive agency.
                  (D) Contents of federal acquisition regulation.--The 
                Federal Acquisition Regulation shall include--
                        (i) criteria for selecting an official to be 
                      delegated authority to grant waivers under 
                      subparagraph (A) or (B); and
                        (ii) the specific circumstances under which the 
                      waiver may be granted.
                  (E) Report.--The head of each executive agency shall 
                report the waivers granted under subparagraphs (A) and 
                (B) for that agency to the Board on an annual basis.

  (c) Required Board Action for Prescribing Standards and 
Interpretations.--Before prescribing cost accounting standards and 
interpretations, the Board shall--
          (1) take into account, after consultation and discussions with 
        the Comptroller General, professional accounting organizations, 
        contractors, and other interested parties--
                  (A) the probable costs of implementation, including 
                any inflationary effects, compared to the probable 
                benefits;
                  (B) the advantages, disadvantages, and improvements 
                anticipated in the pricing and administration of, and 
                settlement of disputes concerning, contracts; and
                  (C) the scope of, and alternatives available to, the 
                action proposed to be taken;
          (2) prepare and publish a report in the Federal Register on 
        the issues reviewed under paragraph (1);
          (3)(A) publish an advanced notice of proposed rulemaking in 
        the Federal Register to solicit comments on the report prepared 
        under paragraph (2);
          (B) provide all parties affected at least 60 days after 
        publication to submit their views and comments; and
          (C) during the 60-day period, consult with the Comptroller 
        General and consider any recommendation the Comptroller General 
        may make; and
          (4) publish a notice of proposed rulemaking in the Federal 
        Register and provide all parties affected at least 60 days after 
        publication to submit their views and comments.

  (d) Effective Dates.--Rules, regulations, cost accounting standards, 
and modifications thereof prescribed or amended under this chapter shall 
have the full force and effect of law, and shall become effective within 
120 days after publication in the Federal Register in final form, unless 
the Board determines that a longer period is necessary. The Board shall 
determine implementation dates for contractors and subcontractors. The 
dates may not be later than

[[Page 124 STAT. 3699]]

the beginning of the second fiscal year of the contractor or 
subcontractor after the standard becomes effective.
  (e) Accompanying Material.--Rules, regulations, cost accounting 
standards, and modifications thereof prescribed or amended under this 
chapter shall be accompanied by prefatory comments and by illustrations, 
if necessary.
  (f) Implementing Regulations.--The Board shall prescribe regulations 
for the implementation of cost accounting standards prescribed or 
interpreted under this section. The regulations shall be incorporated 
into the Federal Acquisition Regulation and shall require contractors 
and subcontractors as a condition of contracting with the Federal 
Government to--
          (1) disclose in writing their cost accounting practices, 
        including methods of distinguishing direct costs from indirect 
        costs and the basis used for allocating indirect costs; and
          (2) agree to a contract price adjustment, with interest, for 
        any increased costs paid to the contractor or subcontractor by 
        the Federal Government because of a change in the contractor's 
        or subcontractor's cost accounting practices or a failure by the 
        contractor or subcontractor to comply with applicable cost 
        accounting standards.

  (g) Nonapplicability of Certain Sections of Title 5.--Functions 
exercised under this chapter are not subject to sections 551, 553 to 
559, and 701 to 706 of title 5.

Sec. 1503. Contract price adjustment

  (a) Disagreement Constitutes a Dispute.--If the Federal Government and 
a contractor or subcontractor fail to agree on a contract price 
adjustment, including whether the contractor or subcontractor has 
complied with the applicable cost accounting standards, the disagreement 
will constitute a dispute under chapter 71 of this title.
  (b) Amount of Adjustment.--A contract price adjustment undertaken 
under section 1502(f)(2) of this title shall be made, where applicable, 
on relevant contracts between the Federal Government and the contractor 
that are subject to the cost accounting standards so as to protect the 
Federal Government from payment, in the aggregate, of increased costs, 
as defined by the Cost Accounting Standards Board. The Federal 
Government may not recover costs greater than the aggregate increased 
cost to the Federal Government, as defined by the Board, on the relevant 
contracts subject to the price adjustment unless the contractor made a 
change in its cost accounting practices of which it was aware or should 
have been aware at the time of the price negotiation and which it failed 
to disclose to the Federal Government.
  (c) Interest.--The interest rate applicable to a contract price 
adjustment is the annual rate of interest established under section 6621 
of the Internal Revenue Code of 1986 (26 U.S.C. 6621) for the period. 
Interest accrues from the time payments of the increased costs were made 
to the contractor or subcontractor to the time the Federal Government 
receives full compensation for the price adjustment.

Sec. 1504. Effect on other standards and regulations

  (a) Previously Existing Standards.--All cost accounting standards, 
waivers, exemptions, interpretations, modifications, rules, and 
regulations prescribed by the Cost Accounting Standards Board

[[Page 124 STAT. 3700]]

under section 719 of the Defense Production Act of 1950 (50 U.S.C. App. 
2168)--
          (1) remain in effect until amended, superseded, or rescinded 
        by the Board under this chapter; and
          (2) are subject to the provisions of this division in the same 
        manner as if prescribed by the Board under this division.

  (b) Inconsistent Agency Regulations.--To ensure that a regulation or 
proposed regulation of an executive agency is not inconsistent with a 
cost accounting standard prescribed or amended under this chapter, the 
Administrator, under the authority in sections 1121, 1122(a) to (c)(1), 
1125, 1126, 1130, 1131, and 2305 of this title, shall rescind or deny 
the promulgation of the inconsistent regulation or proposed regulation 
and take other appropriate action authorized under sections 1121, 
1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 2305.
  (c) Costs Not Subject to Different Standards.--Costs that are the 
subject of cost accounting standards prescribed under this chapter are 
not subject to regulations established by another executive agency that 
differ from those standards with respect to the measurement, assignment, 
and allocation of those costs.

Sec. 1505. Examinations

  To determine whether a contractor or subcontractor has complied with 
cost accounting standards prescribed under this chapter and has followed 
consistently the contractor's or subcontractor's disclosed cost 
accounting practices, an authorized representative of the head of the 
agency concerned, of the offices of inspector general established under 
the Inspector General Act of 1978 (5 U.S.C. App.), or of the Comptroller 
General shall have the right to examine and copy documents, papers, or 
records of the contractor or subcontractor relating to compliance with 
the standards.

Sec. 1506. Authorization of appropriations

  Necessary amounts may be appropriated to carry out this chapter.

           CHAPTER 17--AGENCY RESPONSIBILITIES AND PROCEDURES

Sec.
1701.  Cooperation with the Administrator.
1702.  Chief Acquisition Officers and senior procurement executives.
1703.  Acquisition workforce.
1704.  Planning and policy-making for acquisition workforce.
1705.  Advocates for competition.
1706.  Personnel evaluation.
1707.  Publication of proposed regulations.
1708.  Procurement notice.
1709.  Contracting functions performed by Federal personnel.
1710.  Public-private competition required before conversion to 
           contractor performance.
1711.  Value engineering.
1712.  Record requirements.
1713.  Procurement data.

Sec. 1701. Cooperation with the Administrator

  On the request of the Administrator, each executive agency shall--
          (1) make its services, personnel, and facilities available to 
        the Office of Federal Procurement Policy to the greatest 
        practicable extent for the performance of functions under this 
        division; and

[[Page 124 STAT. 3701]]

          (2) except when prohibited by law, furnish to the 
        Administrator, and give the Administrator access to, all 
        information and records in its possession that the Administrator 
        may determine to be necessary for the performance of the 
        functions of the Office.

Sec. 1702. Chief Acquisition Officers and senior procurement executives

  (a) Appointment or Designation of Chief Acquisition Officer.--The head 
of each executive agency described in section 901(b)(1) (other than the 
Department of Defense) or 901(b)(2)(C) of title 31 with a Chief 
Financial Officer appointed or designated under section 901(a) of title 
31 shall appoint or designate a non-career employee as Chief Acquisition 
Officer for the agency.
  (b) Authority and Functions of Chief Acquisition Officer.--
          (1) Primary duty.--The primary duty of a Chief Acquisition 
        Officer is acquisition management.
          (2) Advice and assistance.--A Chief Acquisition Officer shall 
        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.
          (3) Other functions.--The functions of each Chief Acquisition 
        Officer include--
                  (A) 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;
                  (B) 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 Federal Government's requirements (including 
                performance and delivery schedules) at the lowest cost 
                or best value considering the nature of the property or 
                service procured;
                  (C) increasing appropriate use of performance-based 
                contracting and performance specifications;
                  (D) making acquisition decisions consistent with all 
                applicable laws and establishing clear lines of 
                authority, accountability, and responsibility for 
                acquisition decisionmaking within the executive agency;
                  (E) managing the direction of acquisition policy for 
                the executive agency, including implementation of the 
                unique acquisition policies, regulations, and standards 
                of the executive agency;
                  (F) developing and maintaining an acquisition career 
                management program in the executive agency to ensure 
                that there is an adequate professional workforce; and
                  (G) as part of the strategic planning and performance 
                evaluation process required under section 306 of title 5 
                and sections 1105(a)(28), 1115, 1116, and 9703 (added by 
                section 5(a) of Public Law 103-62 (107 Stat. 289)) of 
                title 31--

[[Page 124 STAT. 3702]]

                        (i) assessing the requirements established for 
                      agency personnel regarding knowledge and skill in 
                      acquisition resources management and the adequacy 
                      of those requirements for facilitating the 
                      achievement of the performance goals established 
                      for acquisition management;
                        (ii) developing strategies and specific plans 
                      for hiring, training, and professional development 
                      to rectify a deficiency in meeting those 
                      requirements; and
                        (iii) reporting to the head of the executive 
                      agency on the progress made in improving 
                      acquisition management capability.

  (c) Senior Procurement Executive.--
          (1) Designation.--The head of each executive agency shall 
        designate a senior procurement executive.
          (2) Responsibility.--The senior procurement executive is 
        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.
          (3) When chief acquisition officer appointed or designated.--
        For an executive agency for which a Chief Acquisition Officer 
        has been appointed or designated under subsection (a), the head 
        of the executive agency shall--
                  (A) designate the Chief Acquisition Officer as the 
                senior procurement executive for the executive agency; 
                or
                  (B) ensure that the senior procurement executive 
                designated under paragraph (1) reports directly to the 
                Chief Acquisition Officer without intervening authority.

Sec. 1703. Acquisition workforce

  (a) Description.--For purposes of this section, the acquisition 
workforce of an agency consists of all employees serving in acquisition 
positions listed in subsection (g)(1)(A).
  (b) Applicability.--
          (1) Nonapplicability to certain executive agencies.--Except as 
        provided in subsection (i), this section does not apply to an 
        executive agency that is subject to chapter 87 of title 10.
          (2) Applicability of programs.--The programs established by 
        this section apply to the acquisition workforce of each 
        executive agency.

  (c) Management Policies.--
          (1) Duties of head of executive agency.--
                  (A) Establish policies and procedures.--After 
                consultation with the Administrator, the head of each 
                executive agency shall establish policies and procedures 
                for the effective management (including accession, 
                education, training, career development, and performance 
                incentives) of the acquisition workforce of the agency. 
                The development of acquisition workforce policies under 
                this section shall be carried out consistent with the 
                merit system principles set forth in section 2301(b) of 
                title 5.
                  (B) Ensure uniform implementation.--The head of each 
                executive agency shall ensure that, to the maximum 
                extent practicable, acquisition workforce policies and 
                procedures established are uniform in their 
                implementation throughout the agency.

[[Page 124 STAT. 3703]]

          (2) Duties of administrator.--The Administrator shall issue 
        policies to promote uniform implementation of this section by 
        executive agencies, with due regard for differences in program 
        requirements among agencies that may be appropriate and 
        warranted in view of the agency mission. The Administrator shall 
        coordinate with the Deputy Director for Management of the Office 
        of Management and Budget to ensure that the policies are 
        consistent with the policies and procedures established, and 
        enhanced system of incentives provided, pursuant to section 
        5051(c) of the Federal Acquisition Streamlining Act of 1994 
        (Public Law 103-355, 108 Stat. 3351). The Administrator shall 
        evaluate the implementation of this section by executive 
        agencies.

  (d) Authority and Responsibility of Senior Procurement Executive.--
Subject to the authority, direction, and control of the head of an 
executive agency, the senior procurement executive of the agency shall 
carry out all powers, functions, and duties of the head of the agency 
with respect to implementing this section. The senior procurement 
executive shall ensure that the policies of the head of the executive 
agency established in accordance with this section are implemented 
throughout the agency.
  (e) Collecting and Maintaining Information.--The Administrator shall 
ensure that the heads of executive agencies collect and maintain 
standardized information on the acquisition workforce related to 
implementing this section. To the maximum extent practicable, 
information requirements shall conform to standards the Director of the 
Office of Personnel Management establishes for the Central Personnel 
Data File.
  (f) Career Development.--
          (1) Career paths.--
                  (A) Identification.--The head of each executive agency 
                shall ensure that appropriate career paths for personnel 
                who desire to pursue careers in acquisition are 
                identified in terms of the education, training, 
                experience, and assignments necessary for career 
                progression to the most senior acquisition positions. 
                The head of each executive agency shall make available 
                information on those career paths.
                  (B) Critical duties and tasks.--For each career path, 
                the head of each executive agency shall identify the 
                critical acquisition-related duties and tasks in which, 
                at minimum, employees of the agency in the career path 
                shall be competent to perform at full performance grade 
                levels. For this purpose, the head of the executive 
                agency shall provide appropriate coverage of the 
                critical duties and tasks identified by the Director of 
                the Federal Acquisition Institute.
                  (C) Mandatory training and education.--For each career 
                path, the head of each executive agency shall establish 
                requirements for the completion of course work and 
                related on-the-job training in the critical acquisition-
                related duties and tasks of the career path. The head of 
                each executive agency also shall encourage employees to 
                maintain the currency of their acquisition knowledge and 
                generally enhance their knowledge of related acquisition 
                management disciplines through academic programs and 
                other self-developmental activities.
          (2) Performance incentives.--The head of each executive agency 
        shall provide for an enhanced system of incentives to encourage 
        excellence in the acquisition workforce that rewards

[[Page 124 STAT. 3704]]

        performance of employees who contribute to achieving the 
        agency's performance goals. The system of incentives shall 
        include provisions that--
                  (A) relate pay to performance (including the extent to 
                which the performance of personnel in the workforce 
                contributes to achieving the cost goals, schedule goals, 
                and performance goals established for acquisition 
                programs pursuant to section 3103(b) of this title); and
                  (B) provide for consideration, in personnel 
                evaluations and promotion decisions, of the extent to 
                which the performance of personnel in the workforce 
                contributes to achieving the cost goals, schedule goals, 
                and performance goals.

  (g) Qualification Requirements.--
          (1) In general.--Subject to paragraph (2), the Administrator 
        shall--
                  (A) establish qualification requirements, including 
                education requirements, for--
                        (i) entry-level positions in the General 
                      Schedule Contracting series (GS-1102);
                        (ii) senior positions in the General Schedule 
                      Contracting series (GS-1102);
                        (iii) all positions in the General Schedule 
                      Purchasing series (GS-1105); and
                        (iv) positions in other General Schedule series 
                      in which significant acquisition-related functions 
                      are performed; and
                  (B) prescribe the manner and extent to which the 
                qualification requirements shall apply to an individual 
                serving in a position described in subparagraph (A) at 
                the time the requirements are established.
          (2) Relationship to requirements applicable to defense 
        acquisition workforce.--The Administrator shall establish 
        qualification requirements and make prescriptions under 
        paragraph (1) that are comparable to those established for the 
        same or equivalent positions pursuant to chapter 87 of title 10 
        with appropriate modifications.
          (3) Approval of requirements.--The Administrator shall submit 
        any requirement established or prescription made under paragraph 
        (1) to the Director of the Office of Personnel Management for 
        approval. The Director is deemed to have approved the 
        requirement or prescription if the Director does not disapprove 
        the requirement or prescription within 30 days after receiving 
        it.

  (h) Education and Training.--
          (1) Funding levels.--The head of an executive agency shall set 
        forth separately the funding levels requested for educating and 
        training the acquisition workforce in the budget justification 
        documents submitted in support of the President's budget 
        submitted to Congress under section 1105 of title 31.
          (2) Tuition assistance.--The head of an executive agency may 
        provide tuition reimbursement in education (including a full-
        time course of study leading to a degree) in accordance with 
        section 4107 of title 5 for personnel serving in acquisition 
        positions in the agency.
          (3) Restricted obligation.--Amounts appropriated for education 
        and training under this section may not be obligated for another 
        purpose.

[[Page 124 STAT. 3705]]

  (i) Training Fund.--
          (1) Purposes.--The purposes of this subsection are to ensure 
        that the Federal acquisition workforce--
                  (A) 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
                  (B) acquires new skills and a new perspective to 
                enable it to contribute effectively in the changing 
                environment of the 21st century.
          (2) Establishment and management of fund.--There is an 
        acquisition workforce training fund. The Administrator of 
        General Services shall manage the fund through the Federal 
        Acquisition Institute to support the training of the acquisition 
        workforce of the executive agencies, except as provided in 
        paragraph (5). The Administrator of General Services shall 
        consult with the Administrator in managing the fund.
          (3) Credits to fund.--Five percent of the fees collected by 
        executive agencies (other than the Department of Defense) under 
        the following contracts shall be credited to the fund:
                  (A) Government-wide task and delivery-order contracts 
                entered into under sections 4103 and 4105 of this title.
                  (B) Government-wide contracts for the acquisition of 
                information technology as defined in section 11101 of 
                title 40 and multiagency acquisition contracts for that 
                technology authorized by section 11314 of title 40.
                  (C) multiple-award schedule contracts entered into by 
                the Administrator of General Services.
          (4) Remittance by head of executive agency.--The head of an 
        executive agency that administers a contract described in 
        paragraph (3) shall remit to the General Services Administration 
        the amount required to be credited to the fund with respect to 
        the contract at the end of each quarter of the fiscal year.
          (5) Transfer and use of fees collected from department of 
        defense.--The Administrator of General Services shall transfer 
        to the Secretary of Defense fees collected from the Department 
        of Defense pursuant to paragraph (3). The Defense Acquisition 
        University shall use the fees for acquisition workforce 
        training.
          (6) Amounts not to be used for other purposes.--The 
        Administrator of General Services, through the Office of Federal 
        Procurememt Policy, shall ensure that amounts collected for 
        training under this subsection are not used for a purpose other 
        than the purpose specified in paragraph (2).
          (7) Amounts are in addition to other amounts for education and 
        training.--Amounts credited to the fund are in addition to 
        amounts requested and appropriated for education and training 
        referred to in subsection (h)(1).
          (8) Availability of amounts.--Amounts credited to the fund 
        remain available to be expended only in the fiscal year for 
        which they are credited and the 2 succeeding fiscal years.

  (j) Recruitment Program.--
          (1) Shortage category positions.--For purposes of sections 
        3304, 5333, and 5753 of title 5, the head of a department or 
        agency of the Federal Government (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 subsection (g)(1)(A)) are

[[Page 124 STAT. 3706]]

        shortage category positions in order to use the authorities in 
        those sections to recruit and appoint highly qualified 
        individuals directly to those positions in the department or 
        agency.
          (2) Termination of authority.--The head of a department or 
        agency may not appoint an individual to a position of employment 
        under this subsection after September 30, 2012.

  (k) Reemployment Without Loss of Annuity.--
          (1) Establishment of policies and procedures.--The head of 
        each executive agency, after consultation with the Administrator 
        and the Director of the Office of Personnel Management, shall 
        establish policies and procedures under which the agency head 
        may reemploy in an acquisition-related position (as described in 
        subsection (g)(1)(A)) an individual receiving an annuity from 
        the Civil Service Retirement and Disability Fund, on the basis 
        of the individual's service, without discontinuing the annuity. 
        The head of each executive agency shall keep the Administrator 
        informed of the agency's use of this authority.
          (2) Criteria for continuation of annuity.--Policies and 
        procedures established under paragraph (1) shall authorize the 
        head of the executive agency, on a case-by-case basis, to 
        continue an annuity if any of the following makes the 
        reemployment of an individual essential:
                  (A) The unusually high or unique qualifications of an 
                individual receiving an annuity from the Civil Service 
                Retirement and Disability Fund on the basis of the 
                individual's service.
                  (B) The exceptional difficulty in recruiting or 
                retaining a qualified employee.
                  (C) A temporary emergency hiring need.
          (3) Service not subject to csrs or fers.--An individual 
        reemployed under this subsection shall not be deemed an employee 
        for purposes of chapter 83 or 84 of title 5.
          (4) Reporting requirement.--The Administrator shall submit 
        annually to the Committee on Oversight and Government Reform of 
        the House of Representatives and the Committee on Homeland 
        Security and Governmental Affairs of the Senate a report on the 
        use of the authority under this subsection, including the number 
        of employees reemployed under authority of this subsection.
          (5) Sunset provision.--The authority under this subsection 
        expires on December 31, 2011.

Sec. 1704. Planning and policy-making for acquisition workforce

  (a) Definitions.--In this section:
          (1) Associate Administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for 
        Acquisition Workforce Programs as designated by the 
        Administrator pursuant to subsection (b).
          (2) Chief Acquisition Officer.--The term ``Chief Acquisition 
        Officer'' means a Chief Acquisition Officer for an executive 
        agency appointed pursuant to section 1702 of this title.

  (b) Associate Administrator for Acquisition Workforce Programs.--The 
Administrator shall designate a member of the Senior Executive Service 
as the Associate Administrator for Acquisition Workforce Programs. The 
Associate Administrator shall be located in the Federal Acquisition 
Institute (or its successor). The Associate Administrator shall be 
responsible for--

[[Page 124 STAT. 3707]]

          (1) supervising the acquisition workforce training fund 
        established under section 1703(i) of this title;
          (2) developing, in coordination with Chief Acquisition 
        Officers and Chief Human Capital Officers, a strategic human 
        capital plan for the acquisition workforce of the Federal 
        Government;
          (3) reviewing and providing input to individual agency 
        acquisition workforce succession plans;
          (4) recommending to the Administrator and other senior 
        government officials appropriate programs, policies, and 
        practices to increase the quantity and quality of the Federal 
        acquisition workforce; and
          (5) carrying out other functions that the Administrator may 
        assign.

  (c) Acquisition and Contracting Training Programs Within Executive 
Agencies.--
          (1) Chief Acquisition Officer authorities and 
        responsibilities.--Subject to the authority, direction, and 
        control of the head of an executive agency, the Chief 
        Acquisition Officer for that agency shall carry out all powers, 
        functions, and duties of the head of the agency with respect to 
        implementation of this subsection. The Chief Acquisition Officer 
        shall ensure that the policies established by the head of the 
        agency in accordance with this subsection are implemented 
        throughout the agency.
          (2) Requirement.--The head of each executive agency, after 
        consultation with the Associate Administrator, shall establish 
        and operate acquisition and contracting training programs. The 
        programs shall--
                  (A) have curricula covering a broad range of 
                acquisition and contracting disciplines corresponding to 
                the specific acquisition and contracting needs of the 
                agency involved;
                  (B) be developed and applied according to rigorous 
                standards; and
                  (C) be designed to maximize efficiency, through the 
                use of self-paced courses, online courses, on-the-job 
                training, and the use of remote instructors, wherever 
                those features can be applied without reducing the 
                effectiveness of the training or negatively affecting 
                academic standards.

  (d)  Government-wide Policies and Evaluation.--The Administrator shall 
issue policies to promote the development of performance standards for 
training and uniform implementation of this section by executive 
agencies, with due regard for differences in program requirements among 
agencies that may be appropriate and warranted in view of the agency 
mission. The Administrator shall evaluate the implementation of the 
provisions of subsection (c) by executive agencies.
  (e) Information on Acquisition and Contracting Training.--The 
Administrator shall ensure that the heads of executive agencies collect 
and maintain standardized information on the acquisition and contracting 
workforce related to the implementation of subsection (c).
  (f) Acquisition Workforce Human Capital Succession Plan.--
          (1) In general.--Each Chief Acquisition Officer for an 
        executive agency shall develop, in consultation with the Chief 
        Human Capital Officer for the agency and the Associate 
        Administrator, a succession plan consistent with the agency's 
        strategic human capital plan for the recruitment, development, 
        and retention of the agency's acquisition workforce, with a 
        particular focus

[[Page 124 STAT. 3708]]

        on warranted contracting officers and program managers of the 
        agency.
          (2) Content of plan.--The acquisition workforce succession 
        plan shall address--
                  (A) recruitment goals for personnel from procurement 
                intern programs;
                  (B) the agency's acquisition workforce training needs;
                  (C) actions to retain high performing acquisition 
                professionals who possess critical relevant skills;
                  (D) recruitment goals for personnel from the Federal 
                Career Intern Program; and
                  (E) recruitment goals for personnel from the 
                Presidential Management Fellows Program.

  (g) Acquisition Workforce Development Strategic Plan.--
          (1) Purpose.--The purpose of this subsection is to authorize 
        the preparation and completion of the Acquisition Workforce 
        Development Strategic Plan, which is a plan for Federal agencies 
        other than the Department of Defense to--
                  (A) develop a specific and actionable 5-year plan to 
                increase the size of the acquisition workforce; and
                  (B) operate a government-wide acquisition intern 
                program for the Federal agencies.
          (2) Establishment of plan.--The Associate Administrator shall 
        be responsible for the management, oversight, and administration 
        of the Acquisition Workforce Development Strategic Plan in 
        cooperation and consultation with the Office of Federal 
        Procurement Policy and with the assistance of the Federal 
        Acquisition Institute.
          (3) Criteria.--The Acquisition Workforce Development Strategic 
        Plan shall include an examination of the following matters:
                  (A) The variety and complexity of acquisitions 
                conducted by each Federal agency covered by the plan, 
                and the workforce needed to effectively carry out the 
                acquisitions.
                  (B) The development of a sustainable funding model to 
                support efforts to hire, retain, and train an 
                acquisition workforce of appropriate size and skill to 
                effectively carry out the acquisition programs of the 
                Federal agencies covered by the plan, including an 
                examination of interagency funding methods and a 
                discussion of how the model of the Defense Acquisition 
                Workforce Development Fund could be applied to civilian 
                agencies.
                  (C) Any strategic human capital planning necessary to 
                hire, retain, and train an acquisition workforce of 
                appropriate size and skill at each Federal agency 
                covered by the plan.
                  (D) Methodologies that Federal agencies covered by the 
                plan can use to project future acquisition workforce 
                personnel hiring requirements, including an appropriate 
                distribution of such personnel across each category of 
                positions designated as acquisition workforce personnel 
                under section 1703(g) of this title.
                  (E) Government-wide training standards and 
                certification requirements necessary to enhance the 
                mobility and career opportunities of the Federal 
                acquisition workforce within the Federal agencies 
                covered by the plan.
                  (F) If the Associate Administrator recommends as part 
                of the plan a growth in the acquisition workforce of the

[[Page 124 STAT. 3709]]

                Federal agencies covered by the plan below 25 percent 
                over the next 5 years, an examination of each of the 
                matters specified in subparagraphs (A) to (E) in the 
                context of a 5-year plan that increases the size of such 
                acquisition workforce by not less than 25 percent, or an 
                explanation why such a level of growth would not be in 
                the best interest of the Federal Government.
          (4) Deadline for completion.--The Acquisition Workforce 
        Development Strategic Plan shall be completed not later than one 
        year after October 14, 2008, and in a fashion that allows for 
        immediate implementation of its recommendations and guidelines.
          (5) Funds.--The acquisition workforce development strategic 
        plan shall be funded from the acquisition workforce training 
        fund under section 1703(i) of this title.

  (h) Training in the Acquisition of Architect and Engineering 
Services.--The Administrator shall ensure that a sufficient number of 
Federal employees are trained in the acquisition of architect and 
engineering services.
  (i) Utilization of Recruitment and Retention Authorities.--The 
Administrator, in coordination with the Director of the Office of 
Personnel Management, shall encourage executive agencies to use existing 
authorities, including direct hire authority and tuition assistance 
programs, to recruit and retain acquisition personnel and consider 
recruiting acquisition personnel who may be retiring from the private 
sector, consistent with existing laws and regulations.

Sec. 1705. Advocates for competition

  (a) Establishment and Designation.--
          (1) Establishment.--Each executive agency has an advocate for 
        competition.
          (2) Designation.--The head of each executive agency shall--
                  (A) designate for the executive agency and for each 
                procuring activity of the executive agency one officer 
                or employee serving in a position authorized for the 
                executive agency on July 18, 1984 (other than the senior 
                procurement executive designated pursuant to section 
                1702(c) of this title) to serve as the advocate for 
                competition;
                  (B) not assign those officers or employees duties or 
                responsibilities that are inconsistent with the duties 
                and responsibilities of the advocates for competition; 
                and
                  (C) provide those officers or employees with the staff 
                or assistance necessary to carry out the duties and 
                responsibilities of the advocate for competition, such 
                as individuals who are specialists in engineering, 
                technical operations, contract administration, financial 
                management, supply management, and utilization of small 
                and disadvantaged business concerns.

  (b) Duties and Functions.--The advocate for competition of an 
executive agency shall--
          (1) be responsible for challenging barriers to, and promoting 
        full and open competition in, the procurement of property and 
        services by the executive agency;
          (2) review the procurement activities of the executive agency;
          (3) identify and report to the senior procurement executive of 
        the executive agency--

[[Page 124 STAT. 3710]]

                  (A) opportunities and actions taken to achieve full 
                and open competition in the procurement activities of 
                the executive agency; and
                  (B) any condition or action which has the effect of 
                unnecessarily restricting competition in the procurement 
                actions of the executive agency;
          (4) prepare and transmit to the senior procurement executive 
        an annual report describing--
                  (A) the advocate's activities under this section;
                  (B) new initiatives required to increase competition; 
                and
                  (C) remaining barriers to full and open competition;
          (5) recommend to the senior procurement executive--
                  (A) goals and the plans for increasing competition on 
                a fiscal year basis; and
                  (B) a system of personal and organizational 
                accountability for competition, which may include the 
                use of recognition and awards to motivate program 
                managers, contracting officers, and others in authority 
                to promote competition in procurement programs; and
          (6) describe other ways in which the executive agency has 
        emphasized competition in programs for procurement training and 
        research.

  (c) Responsibilities.--The advocate for competition for each procuring 
activity is responsible for promoting full and open competition, 
promoting the acquisition of commercial items, and challenging barriers 
to acquisition, including unnecessarily restrictive statements of need, 
unnecessarily detailed specifications, and unnecessarily burdensome 
contract clauses.

Sec. 1706. Personnel evaluation

  The head of each executive agency subject to division C shall ensure, 
with respect to the employees of that agency whose primary duties and 
responsibilities pertain to the award of contracts subject to the 
provisions of the Small Business and Federal Procurement Competition 
Enhancement Act of 1984 (Public Law 98-577, 98 Stat. 3066), that the 
performance appraisal system applicable to those employees affords 
appropriate recognition to, among other factors, efforts to--
          (1) increase competition and achieve cost savings through the 
        elimination of procedures that unnecessarily inhibit full and 
        open competition;
          (2) further the purposes of the Small Business and Federal 
        Procurement Competition Enhancement Act of 1984 (Public Law 98-
        577, 98 Stat. 3066) and the Defense Procurement Reform Act of 
        1984 (Public Law 98-525, title XII, 98 Stat. 2588); and
          (3) further other objectives and purposes of the Federal 
        acquisition system authorized by law.

Sec. 1707. Publication of proposed regulations

  (a) Covered Policies, Regulations, Procedures, and Forms.--
          (1) Required comment period.--Except as provided in subsection 
        (d), a procurement policy, regulation, procedure, or form 
        (including an amendment or modification thereto) may not take 
        effect until 60 days after it is published for public comment in 
        the Federal Register pursuant to subsection (b) if it--
                  (A) relates to the expenditure of appropriated funds; 
                and

[[Page 124 STAT. 3711]]

                  (B)(i) has a significant effect beyond the internal 
                operating procedures of the agency issuing the policy, 
                regulation, procedure, or form; or
                  (ii) has a significant cost or administrative impact 
                on contractors or offerors.
          (2) Exception.--A policy, regulation, procedure, or form may 
        take effect earlier than 60 days after the publication date when 
        there are compelling circumstances for the earlier effective 
        date, but the effective date may not be less than 30 days after 
        the publication date.

  (b) Publication in Federal Register and Comment Period.--Subject to 
subsection (c), the head of the agency shall have published in the 
Federal Register a notice of the proposed procurement policy, 
regulation, procedure, or form and provide for a public comment period 
for receiving and considering the views of all interested parties on the 
proposal. The length of the comment period may not be less than 30 days.
  (c) Contents of Notice.--Notice of a proposed procurement policy, 
regulation, procedure, or form prepared for publication in the Federal 
Register shall include--
          (1) the text of the proposal or, if it is impracticable to 
        publish the full text of the proposal, a summary of the proposal 
        and a statement specifying the name, address, and telephone 
        number of the officer or employee of the executive agency from 
        whom the full text may be obtained; and
          (2) a request for interested parties to submit comments on the 
        proposal and the name and address of the officer or employee of 
        the Federal Government designated to receive the comments.

  (d) Waiver.--The requirements of subsections (a) and (b) may be waived 
by the officer authorized to issue a procurement policy, regulation, 
procedure, or form if urgent and compelling circumstances make 
compliance with the requirements impracticable.
  (e) Effectiveness of Policy, Regulation, Procedure, or Form.--
          (1) Temporary basis.--A procurement policy, regulation, 
        procedure, or form for which the requirements of subsections (a) 
        and (b) are waived under subsection (d) is effective on a 
        temporary basis if--
                  (A) a notice of the policy, regulation, procedure, or 
                form is published in the Federal Register and includes a 
                statement that the policy, regulation, procedure, or 
                form is temporary; and
                  (B) provision is made for a public comment period of 
                30 days beginning on the date on which the notice is 
                published.
          (2) Final policy, regulation, procedure, or form.--After 
        considering the comments received, the head of the agency 
        waiving the requirements of subsections (a) and (b) under 
        subsection (d) may issue the final procurement policy, 
        regulation, procedure, or form.

Sec. 1708. Procurement notice

  (a) Notice Requirement.--Except as provided in subsection (b)--
          (1) an executive agency intending to solicit bids or proposals 
        for a contract for property or services for a price expected to 
        exceed $10,000, but not to exceed $25,000, shall post, for not 
        less than 10 days, in a public place at the contracting

[[Page 124 STAT. 3712]]

        office issuing the solicitation a notice of solicitation 
        described in subsection (c);
          (2) an executive agency shall publish a notice of solicitation 
        described in subsection (c) if the agency intends to--
                  (A) solicit bids or proposals for a contract for 
                property or services for a price expected to exceed 
                $25,000; or
                  (B) place an order, expected to exceed $25,000, under 
                a basic agreement, basic ordering agreement, or similar 
                arrangement; and
          (3) an executive agency awarding a contract for property or 
        services for a price exceeding $25,000, or placing an order 
        exceeding $25,000 under a basic agreement, basic ordering 
        agreement, or similar arrangement, shall furnish for publication 
        a notice announcing the award or order if there is likely to be 
        a subcontract under the contract or order.

  (b) Exemptions.--
          (1) In general.--A notice is not required under subsection (a) 
        if--
                  (A) the proposed procurement is for an amount not 
                greater than the simplified acquisition threshold and is 
                to be conducted by--
                        (i) using widespread electronic public notice of 
                      the solicitation in a form that allows convenient 
                      and universal user access through a single, 
                      Government-wide point of entry; and
                        (ii) permitting the public to respond to the 
                      solicitation electronically;
                  (B) the notice would disclose the executive agency's 
                needs and disclosure would compromise national security;
                  (C) the proposed procurement would result from 
                acceptance of--
                        (i) an unsolicited proposal that demonstrates a 
                      unique and innovative research concept and 
                      publication of a notice of the unsolicited 
                      research proposal would disclose the originality 
                      of thought or innovativeness of the proposal or 
                      would disclose proprietary information associated 
                      with the proposal; or
                        (ii) a proposal submitted under section 9 of the 
                      Small Business Act (15 U.S.C. 638);
                  (D) the procurement is made against an order placed 
                under a requirements contract, a task order contract, or 
                a delivery order contract;
                  (E) the procurement is made for perishable subsistence 
                supplies;
                  (F) the procurement is for utility services, other 
                than telecommunication services, and only one source is 
                available; or
                  (G) the procurement is for the services of an expert 
                for use in any litigation or dispute (including any 
                reasonably foreseeable litigation or dispute) involving 
                the Federal Government in a trial, hearing, or 
                proceeding before a court, administrative tribunal, or 
                agency, or in any part of an alternative dispute 
                resolution process, whether or not the expert is 
                expected to testify.
          (2) Certain procurements.--The requirements of subsection 
        (a)(2) do not apply to a procurement--

[[Page 124 STAT. 3713]]

                  (A) under conditions described in paragraph (2), (3), 
                (4), (5), or (7) of section 3304(a) of this title or 
                paragraph (2), (3), (4), (5), or (7) of section 2304(c) 
                of title 10; or
                  (B) for which the head of the executive agency makes a 
                determination in writing, after consultation with the 
                Administrator and the Administrator of the Small 
                Business Administration, that it is not appropriate or 
                reasonable to publish a notice before issuing a 
                solicitation.
          (3) Implementation consistent with international agreements.--
        Paragraph (1)(A) shall be implemented in a manner consistent 
        with applicable international agreements.

  (c) Contents of Notice.--Each notice of solicitation required by 
paragraph (1) or (2) of subsection (a) shall include--
          (1) an accurate description of the property or services to be 
        contracted for, which description--
                  (A) shall not be unnecessarily restrictive of 
                competition; and
                  (B) shall include, as appropriate, the agency 
                nomenclature, National Stock Number or other part 
                number, and a brief description of the item's form, fit, 
                or function, physical dimensions, predominant material 
                of manufacture, or similar information that will assist 
                a prospective contractor to make an informed business 
                judgment as to whether a copy of the solicitation should 
                be requested;
          (2) provisions that--
                  (A)(i) state whether the technical data required to 
                respond to the solicitation will not be furnished as 
                part of the solicitation; and
                  (ii) identify the source in the Federal Government, if 
                any, from which the technical data may be obtained; and
                  (B)(i) state whether an offeror or its product or 
                service must meet a qualification requirement in order 
                to be eligible for award; and
                  (ii) if so, identify the office from which the 
                qualification requirement may be obtained;
          (3) the name, business address, and telephone number of the 
        contracting officer;
          (4) a statement that all responsible sources may submit a bid, 
        proposal, or quotation (as appropriate) that the agency shall 
        consider;
          (5) in the case of a procurement using procedures other than 
        competitive procedures, a statement of the reason justifying the 
        use of those procedures and the identity of the intended source; 
        and
          (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, or a contract for the procurement of 
        commercial items using special simplified procedures--
                  (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.

  (d) Electronic Publication of Notice of Solicitation, Award, or 
Order.--A notice of solicitation, award, or order required to be 
published under subsection (a) shall be published by electronic means. 
The notice must be electronically accessible in a form that allows 
convenient and universal user access through the single

[[Page 124 STAT. 3714]]

Government-wide point of entry designated in the Federal Acquisition 
Regulation.
  (e) Time Limitations.--
          (1) Issuing notice of solicitation and establishing deadline 
        for submitting bids and proposals.--An executive agency required 
        by subsection (a)(2) to publish a notice of solicitation may 
        not--
                  (A) issue the solicitation earlier than 15 days after 
                the date on which the notice is published; or
                  (B) in the case of a contract or order expected to be 
                greater than the simplified acquisition threshold, 
                establish a deadline for the submission of all bids or 
                proposals in response to the notice required by 
                subsection (a)(2) that--
                        (i) in the case of a solicitation for research 
                      and development, is earlier than 45 days after the 
                      date the notice required for a bid or proposal for 
                      a contract described in subsection (a)(2)(A) is 
                      published;
                        (ii) in the case of an order under a basic 
                      agreement, basic ordering agreement, or similar 
                      arrangement, is earlier than 30 days after the 
                      date the notice required for an order described in 
                      subsection (a)(2)(B) is published; or
                        (iii) in any other case, is earlier than 30 days 
                      after the date the solicitation is issued.
          (2) Establishing deadline when none provided by statute.--An 
        executive agency shall establish a deadline for the submission 
        of all bids or proposals in response to a solicitation for which 
        a deadline is not provided by statute. Each deadline for the 
        submission of offers shall afford potential offerors a 
        reasonable opportunity to respond.
          (3) Flexible deadlines.--The Administrator shall prescribe 
        regulations defining limited circumstances in which flexible 
        deadlines can be used under paragraph (1) for the issuance of 
        solicitations and the submission of bids or proposals for the 
        procurement of commercial items.

  (f) Consideration of Certain Timely Received Offers.--An executive 
agency intending to solicit offers for a contract for which a notice of 
solicitation is required to be posted under subsection (a)(1) shall 
ensure that contracting officers consider each responsive offer timely 
received from an offeror.
  (g) Availability of Complete Solicitation Package and Payment of 
Fee.--An executive agency shall make available to a business concern, or 
the authorized representative of a concern, the complete solicitation 
package for any on-going procurement announced pursuant to a notice of 
solicitation under subsection (a). An executive agency may require the 
payment of a fee, not exceeding the actual cost of duplication, for a 
copy of the package.

Sec. 1709. Contracting functions performed by Federal personnel

  (a) Covered Personnel.--Personnel referred to in subsection (b) are--
          (1) an employee, as defined in section 2105 of title 5;
          (2) a member of the armed forces; and
          (3) an individual assigned to a Federal agency pursuant to 
        subchapter VI of chapter 33 of title 5.

[[Page 124 STAT. 3715]]

  (b) Limitation on Payment for Advisory and Assistance Services.--No 
individual who is not an individual described in subsection (a) may be 
paid by an executive agency for services to conduct evaluations or 
analyses of any aspect of a proposal submitted for an acquisition unless 
personnel described in subsection (a) with adequate training and 
capabilities to perform the evaluations and analyses are not readily 
available in the agency or another Federal agency. When administering 
this subsection, the head of each executive agency shall determine in 
accordance with standards and procedures prescribed in the Federal 
Acquisition Regulation whether--
          (1) a sufficient number of personnel described in subsection 
        (a) in the agency or another Federal agency are readily 
        available to perform a particular evaluation or analysis for the 
        head of the executive agency making the determination; and
          (2) the readily available personnel have the training and 
        capabilities necessary to perform the evaluation or analysis.

  (c) Certain Relationship Not Affected.--This section does not affect 
the relationship between the Federal Government and a Federally funded 
research and development center.

Sec. 1710. Public-private competition required before conversion to 
                        contractor performance

  (a) Public-private competition.--
          (1) When conversion to contractor performance is allowed.--A 
        function of an executive agency performed by 10 or more agency 
        civilian employees may not be converted, in whole or in part, to 
        performance by a contractor unless the conversion is based on 
        the results of a public-private competition that--
                  (A) formally compares the cost of performance of the 
                function by agency civilian employees with the cost of 
                performance by a contractor;
                  (B) creates an agency tender, including a most 
                efficient organization plan, in accordance with Office 
                of Management and Budget Circular A76, as implemented on 
                May 29, 2003, or any successor circular;
                  (C) includes the issuance of a solicitation;
                  (D) determines whether the submitted offers meet the 
                needs of the executive agency with respect to factors 
                other than cost, including quality, reliability, and 
                timeliness;
                  (E) examines the cost of performance of the function 
                by agency civilian employees and the cost of performance 
                of the function by one or more contractors to 
                demonstrate whether converting to performance by a 
                contractor will result in savings to the Federal 
                Government over the life of the contract, including--
                        (i) the estimated cost to the Federal Government 
                      (based on offers received) for performance of the 
                      function by a contractor;
                        (ii) the estimated cost to the Federal 
                      Government for performance of the function by 
                      agency civilian employees; and
                        (iii) an estimate of all other costs and 
                      expenditures that the Federal Government would 
                      incur because of the award of the contract;
                  (F) requires continued performance of the function by 
                agency civilian employees unless the difference in the 
                cost

[[Page 124 STAT. 3716]]

                of performance of the function by a contractor compared 
                to the cost of performance of the function by agency 
                civilian employees would, over all performance periods 
                required by the solicitation, be equal to or exceed the 
                lesser of--
                        (i) 10 percent of the personnel-related costs 
                      for performance of that function in the agency 
                      tender; or
                        (ii) $10,000,000; and
                  (G) examines the effect of performance of the function 
                by a contractor on the agency mission associated with 
                the performance of the function.
          (2) Not a new requirement.--A function that is performed by 
        the executive agency and is reengineered, reorganized, 
        modernized, upgraded, expanded, or changed to become more 
        efficient, but still essentially provides the same service, 
        shall not be considered a new requirement.
          (3) Prohibitions.--In no case may a function being performed 
        by executive agency personnel be--
                  (A) modified, reorganized, divided, or in any way 
                changed for the purpose of exempting the conversion of 
                the function from the requirements of this section; or
                  (B) converted to performance by a contractor to 
                circumvent a civilian personnel ceiling.

  (b) Consulting With Affected Employees or Their Representatives.--
          (1) Consulting with affected employees.--Each civilian 
        employee of an executive agency responsible for determining 
        under Office of Management and Budget Circular A76 whether to 
        convert to contractor performance any function of the executive 
        agency--
                  (A) shall, at least monthly during the development and 
                preparation of the performance work statement and the 
                management efficiency study used in making that 
                determination, consult with civilian employees who will 
                be affected by that determination and consider the views 
                of the employees on the development and preparation of 
                that statement and that study; and
                  (B) may consult with the employees on other matters 
                relating to that determination.
          (2) Consulting with representatives.--
                  (A) Employees represented by a labor organization.--In 
                the case of employees represented by a labor 
                organization accorded exclusive recognition under 
                section 7111 of title 5, consultation with 
                representatives of that labor organization shall satisfy 
                the consultation requirement in paragraph (1).
                  (B) Employees not represented by a labor 
                organization.--In the case of employees other than 
                employees referred to in subparagraph (A), consultation 
                with appropriate representatives of those employees 
                shall satisfy the consultation requirement in paragraph 
                (1).
          (3) Regulations.--The head of each executive agency shall 
        prescribe regulations to carry out this subsection. The 
        regulations shall include provisions for the selection or 
        designation of appropriate representatives of employees referred 
        to in paragraph (2)(B) for purposes of consultation required by 
        paragraph (1).

  (c) Congressional Notification.--

[[Page 124 STAT. 3717]]

          (1) Report.--Before commencing a public-private competition 
        under subsection (a), the head of an executive agency shall 
        submit to Congress a report containing the following:
                  (A) The function for which the public-private 
                competition is to be conducted.
                  (B) The location at which the function is performed by 
                agency civilian employees.
                  (C) The number of agency civilian employee positions 
                potentially affected.
                  (D) The anticipated length and cost of the public-
                private competition, and a specific identification of 
                the budgetary line item from which funds will be used to 
                cover the cost of the public-private competition.
                  (E) A certification that a proposed performance of the 
                function by a contractor is not a result of a decision 
                by an official of an executive agency to impose 
                predetermined constraints or limitations on agency 
                civilian employees in terms of man years, end strengths, 
                full-time equivalent positions, or maximum number of 
                employees.
          (2) Examination of potential economic effect.--The report 
        required under paragraph (1) shall include an examination of the 
        potential economic effect of performance of the function by a 
        contractor on--
                  (A) agency civilian employees who would be affected by 
                such a conversion in performance; and
                  (B) the local community and the Federal Government, if 
                more than 50 agency civilian employees perform the 
                function.
          (3) Objections to public-private competition.--
                  (A) Grounds.--A representative individual or entity at 
                a facility where a public-private competition is 
                conducted may submit to the head of the executive agency 
                an objection to the public-private competition on the 
                grounds that--
                        (i) the report required by paragraph (1) has not 
                      been submitted; or
                        (ii) the certification required by paragraph 
                      (1)(E) was not included in the report required by 
                      paragraph (1).
                  (B) Deadlines.--The objection shall be in writing and 
                shall be submitted within 90 days after the following 
                date:
                        (i) In the case of a failure to submit the 
                      report when required, the date on which the 
                      representative individual or an official of the 
                      representative entity authorized to pose the 
                      objection first knew or should have known of that 
                      failure.
                        (ii) In the case of a failure to include the 
                      certification in a submitted report, the date on 
                      which the report was submitted to Congress.
                  (C) Report and certification required before 
                solicitation or award of contract.--If the head of the 
                executive agency determines that the report required by 
                paragraph (1) was not submitted or that the required 
                certification was not included in the submitted report, 
                the function for which the public-private competition 
                was conducted for which the objection was submitted may 
                not be the subject of a solicitation of offers for, or 
                award of, a contract

[[Page 124 STAT. 3718]]

                until, respectively, the report is submitted or a report 
                containing the certification in full compliance with the 
                certification requirement is submitted.

  (d) Exemption for the Purchase of Products and Services of the Blind 
and Other Severely Disabled People.--This section shall not apply to a 
commercial or industrial type function of an executive agency that is--
          (1) included on the procurement list established pursuant to 
        section 8503 of this title; or
          (2) planned to be changed to performance by a qualified 
        nonprofit agency for the blind or by a qualified nonprofit 
        agency for other severely disabled people in accordance with 
        chapter 85 of this title.

  (e) Inapplicability During War or Emergency.--The provisions of this 
section shall not apply during war or during a period of national 
emergency declared by the President or Congress.

Sec. 1711. Value engineering

  Each executive agency shall establish and maintain cost-effective 
procedures and processes for analyzing the functions of a program, 
project, system, product, item of equipment, building, facility, 
service, or supply of the agency. The analysis shall be--
          (1) performed by qualified agency or contractor personnel; and
          (2) directed at improving performance, reliability, quality, 
        safety, and life cycle costs.

Sec. 1712. Record requirements

  (a) Maintaining Records on Computer.--Each executive agency shall 
establish and maintain for 5 years a computer file, by fiscal year, 
containing unclassified records of all procurements greater than the 
simplified acquisition threshold in that fiscal year.
  (b) Contents.--The record established under subsection (a) shall 
include, with respect to each procurement carried out using--
          (1) competitive procedures--
                  (A) the date of contract award;
                  (B) information identifying the source to whom the 
                contract was awarded;
                  (C) the property or services the Federal Government 
                obtains under the procurement; and
                  (D) the total cost of the procurement; or
          (2) procedures other than competitive procedures--
                  (A) the information described in paragraph (1);
                  (B) the reason under section 3304(a) of this title or 
                section 2304(c) of title 10 for using the procedures; 
                and
                  (C) the identity of the organization or activity that 
                conducted the procurement.

  (c) Separate Record Category for Procurements Resulting in One Bid or 
Proposal.--Information included in a record pursuant to subsection 
(b)(1) that relates to procurements resulting in the submission of a bid 
or proposal by only one responsible source shall be separately 
categorized from the information relating to other procurements included 
in the record. The record of that information shall be designated 
``noncompetitive procurements using competitive procedures''.
  (d) Transmission and Data Entry of Information.--The head of each 
executive agency shall--

[[Page 124 STAT. 3719]]

          (1) ensure the accuracy of the information included in the 
        record established and maintained by the agency under subsection 
        (a); and
          (2) transmit in a timely manner such information to the 
        General Services Administration for entry into the Federal 
        Procurement Data System referred to in section 1122(a)(4) of 
        this title, or any successor system.

Sec. 1713. Procurement data

  (a) Definitions.--In this section:
          (1) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the meaning 
        given that term in section 3(p) of the Small Business Act (15 
        U.S.C. 632(p)).
          (2) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--The term ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' has the meaning given 
        that term in section 8(d) of the Small Business Act (15 U.S.C. 
        637(d)).
          (3) Small business concern owned and controlled by women.--The 
        term ``small business concern owned and controlled by women'' 
        has the meaning given that term in section 8(d) of the Small 
        Business Act (15 U.S.C. 637(d)) and section 204 of the Women's 
        Business Ownership Act of 1988 (Public Law 100-533, 102 Stat. 
        2692).

  (b) Reporting.--Each Federal agency shall report to the Office of 
Federal Procurement Policy the number of qualified HUBZone small 
business concerns, the number of small businesses owned and controlled 
by women, and the number of small business concerns owned and controlled 
by socially and economically disadvantaged individuals, by gender, that 
are first time recipients of contracts from the agency. The Office shall 
take appropriate action to ascertain, for each fiscal year, the number 
of those small businesses that have newly entered the Federal market.

              CHAPTER 19--SIMPLIFIED ACQUISITION PROCEDURES

Sec.
1901.  Simplified acquisition procedures.
1902.  Procedures applicable to purchases below micro-purchase 
           threshold.
1903.  Special emergency procurement authority.
1904.  Certain transactions for defense against attack.
1905.  List of laws inapplicable to contracts or subcontracts not 
           greater than simplified acquisition threshold.
1906.  List of laws inapplicable to procurements of commercial items.
1907.  List of laws inapplicable to procurements of commercially 
           available off-the-shelf items.
1908.  Inflation adjustment of acquisition-related dollar thresholds.

Sec. 1901. Simplified acquisition procedures

  (a) When Procedures Are To Be Used.--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 purchases of property and services for 
amounts--
          (1) not greater than the simplified acquisition threshold; and
          (2) greater than the simplified acquisition threshold but not 
        greater than $5,000,000 for which the contracting officer 
        reasonably expects, based on the nature of the property or 
        services

[[Page 124 STAT. 3720]]

        sought and on market research, that offers will include only 
        commercial items.

  (b) Prohibition on Dividing Purchases.--A proposed purchase or 
contract for an amount above the simplified acquisition threshold may 
not be divided into several purchases or contracts for lesser amounts to 
use the simplified acquisition procedures required by subsection (a).
  (c) Promotion of Competition Required.--When using simplified 
acquisition procedures, the head of an executive agency shall promote 
competition to the maximum extent practicable.
  (d) Consideration of Offers Timely Received.--The simplified 
acquisition procedures contained in the Federal Acquisition Regulation 
shall include a requirement that a contracting officer consider each 
responsive offer timely received from an eligible offeror.
  (e) Special Rules for Commercial Items.--The Federal Acquisition 
Regulation shall provide that an executive agency using special 
simplified procedures to purchase commercial items--
          (1) shall publish a notice in accordance with section 1708 of 
        this title and, as provided in section 1708(c)(4) of this title, 
        permit all responsible sources to submit a bid, proposal, or 
        quotation (as appropriate) that the agency shall consider;
          (2) may not conduct the purchase on a sole source basis unless 
        the need to do so is justified in writing and approved in 
        accordance with section 2304(f) of title 10 or section 3304(e) 
        of this title, as applicable; and
          (3) shall include in the contract file a written description 
        of the procedures used in awarding the contract and the number 
        of offers received.

Sec. 1902. Procedures applicable to purchases below micro-purchase 
                        threshold

  (a) Definition.--For purposes of this section, the micro-purchase 
threshold is $3,000.
  (b) Compliance With Certain Requirements and Nonapplicability of 
Certain Authority.--
          (1) Compliance with certain requirements.--The head of each 
        executive agency shall ensure that procuring activities of that 
        agency, when 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, and section 7102 of the Federal 
        Acquisition Streamlining Act of 1994 (Public Law 103-355, 15 
        U.S.C. 644 note).
          (2) Nonapplicability of certain authority.--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 a purchase with a price exceeding the micro-purchase 
        threshold.

  (c) Nonapplicability of Certain Provisions.--An executive agency 
purchase 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 chapter 83 of this title.
  (d) Purchases Without Competitive Quotations.--A purchase not greater 
than $3,000 may be made without obtaining competitive quotations if an 
employee of an executive agency or a member of the armed forces, 
authorized to do so, determines that the price for the purchase is 
reasonable.

[[Page 124 STAT. 3721]]

  (e) Equitable Distribution.--Purchases not greater than $3,000 shall 
be distributed equitably among qualified suppliers.
  (f) Implementation Through Federal Acquisition Regulation.--This 
section shall be implemented through the Federal Acquisition Regulation.

Sec. 1903. Special emergency procurement authority

  (a) Applicability.--The authorities provided in subsections (b) and 
(c) apply with respect to a procurement of property or services by or 
for an executive agency that the head of the executive agency determines 
are to be used--
          (1) in support of a contingency operation (as defined in 
        section 101(a) of title 10); or
          (2) to facilitate the defense against or recovery from 
        nuclear, biological, chemical, or radiological attack against 
        the United States.

  (b) Increased Thresholds and Limitation.--For a procurement to which 
this section applies under subsection (a)--
          (1) the amount specified in section 1902(a), (d), and (e) of 
        this title shall be deemed to be--
                  (A) $15,000 in the case of a contract to be awarded 
                and performed, or purchase to be made, in the United 
                States; and
                  (B) $25,000 in the case of a contract to be awarded 
                and performed, or purchase to be made, outside the 
                United States;
          (2) the term ``simplified acquisition threshold'' means--
                  (A) $250,000 in the case of a contract to be awarded 
                and performed, or purchase to be made, in the United 
                States; and
                  (B) $1,000,000 in the case of a contract to be awarded 
                and performed, or purchase to be made, outside the 
                United States; and
          (3) the $5,000,000 limitation in sections 1901(a)(2) and 
        3305(a)(2) of this title and section 2304(g)(1)(B) of title 10 
        is deemed to be $10,000,000.

  (c) Authority To Treat Property or Service as Commercial Item.--
          (1) In general.--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 the property or 
        service as a commercial item for the purpose of carrying out the 
        procurement.
          (2) Certain contracts not exempt from standards or 
        requirements.--A contract in an amount of more 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) is not exempt 
        from--
                  (A) cost accounting standards prescribed under section 
                1502 of this title; or
                  (B) cost or pricing data requirements (commonly 
                referred to as truth in negotiating) under chapter 35 of 
                this title and section 2306a of title 10.

Sec. 1904. Certain transactions for defense against attack

  (a) Authority.--
          (1) In general.--The head of an executive agency that engages 
        in basic research, applied research, advanced research,

[[Page 124 STAT. 3722]]

        and development projects that are necessary to the 
        responsibilities of the executive agency in the field of 
        research and development and 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 the research and projects as the Secretary of 
        Defense may exercise under section 2371 of title 10, except for 
        subsections (b) and (f) of section 2371.
          (2) Prototype projects.--The head of an executive agency, 
        under the authority of paragraph (1), may carry out prototype 
        projects that meet the requirements 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 
        section 845(a) of that Act and that the period of authority to 
        carry out projects under section 845(a) of that Act terminates 
        as provided in section 845(i) of that Act.
          (3) Application of requirements and conditions.--In applying 
        the requirements and conditions of section 845 of that Act under 
        this subsection--
                  (A) section 845(c) of that Act shall apply with 
                respect to prototype projects carried out under 
                paragraph (2); and
                  (B) the Director of the Office of Management and 
                Budget shall perform the functions of the Secretary of 
                Defense under section 845(d) of that Act.
          (4) Applicability to selected executive agencies.--
                  (A) Office of management and budget.--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.
                  (B) Department of homeland security.--Authority under 
                this subsection does not apply to the Secretary of 
                Homeland Security while section 831 of the Homeland 
                Security Act of 2002 (6 U.S.C. 391) is in effect.

  (b) 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 
regulations take effect.
  (c) Annual Report.--The annual report of the head of an executive 
agency that is required under section 2371(h) of title 10, as applied to 
the head of the executive agency by subsection (a), shall be submitted 
to the Committee on Homeland Security and Governmental Affairs of the 
Senate and the Committee on Oversight and Government Reform of the House 
of Representatives.
  (d) Termination of Authority.--The authority to carry out transactions 
under subsection (a) terminates on September 30, 2008.

Sec. 1905. List of laws inapplicable to contracts or subcontracts not 
                        greater than simplified acquisition threshold

  (a) Definition.--In this section, the term ``Council'' has the meaning 
given that term in section 1301 of this title.
  (b) Inclusion in Federal Acquisition Regulation.--
          (1) In general.--The Federal Acquisition Regulation shall 
        include a list of provisions of law that are inapplicable to

[[Page 124 STAT. 3723]]

        contracts or subcontracts in amounts not greater than the 
        simplified acquisition threshold. A provision of law properly 
        included on the list pursuant to paragraph (2) does not apply to 
        contracts or subcontracts in amounts not greater than the 
        simplified acquisition threshold that are made by an executive 
        agency. This section does not render a provision of law not 
        included on the list inapplicable to contracts and subcontracts 
        in amounts not greater than the simplified acquisition 
        threshold.
          (2) Laws enacted after october 13, 1994.--A provision of law 
        described in subsection (c) that is enacted after October 13, 
        1994, shall be included on the list of inapplicable provisions 
        of laws required by paragraph (1) unless the Council makes a 
        written determination that it would not be in the best interest 
        of the Federal Government to exempt contracts or subcontracts in 
        amounts not greater than the simplified acquisition threshold 
        from the applicability of the provision.

  (c) Covered Law.--A provision of law referred to in subsection (b)(2) 
is a provision of law that the Council determines 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.

  (d) Petition.--A person may petition the Administrator to take 
appropriate action when a provision of law described in subsection (c) 
is not included on the list of inapplicable provisions of law as 
required by subsection (b) and the Council has not made a written 
determination pursuant to subsection (b)(2). The Administrator shall 
revise the Federal Acquisition Regulation to include the provision on 
the list of inapplicable provisions of law unless the Council makes a 
determination pursuant to subsection (b)(2) within 60 days after the 
petition is received.

Sec. 1906. List of laws inapplicable to procurements of commercial items

  (a) Definition.--In this section, the term ``Council'' has the meaning 
given that term in section 1301 of this title.
  (b) Contracts.--
          (1) Inclusion in federal acquisition regulation.--The Federal 
        Acquisition Regulation shall include a list of provisions of law 
        that are inapplicable to contracts for the procurement of 
        commercial items. A provision of law properly included on the 
        list pursuant to paragraph (2) does not apply to purchases of 
        commercial items by an executive agency. This section does not 
        render a provision of law not included on the list inapplicable 
        to contracts for the procurement of commercial items.
          (2) Laws enacted after october 13, 1994.--A provision of law 
        described in subsection (d) that is enacted after October 13, 
        1994, shall be included on the list of inapplicable provisions 
        of law required by paragraph (1) unless the Council makes a 
        written determination that it would not be in the best interest 
        of the Federal Government to exempt contracts for the 
        procurement of commercial items from the applicability of the 
        provision.

[[Page 124 STAT. 3724]]

  (c) Subcontracts.--
          (1) Definition.--In this subsection, the term ``subcontract'' 
        includes a transfer of commercial items between divisions, 
        subsidiaries, or affiliates of a contractor or subcontractor.
          (2) Inclusion in federal acquisition regulation.--The Federal 
        Acquisition Regulation shall include a list of provisions of law 
        that are inapplicable to subcontracts under a contract or 
        subcontract for the procurement of commercial items. A provision 
        of law properly included on the list pursuant to paragraph (3) 
        does not apply to those subcontracts. This section does not 
        render a provision of law not included on the list inapplicable 
        to subcontracts under a contract for the procurement of 
        commercial items.
          (3) Provisions to be excluded from list.--A provision of law 
        described in subsection (d) shall be included on the list of 
        inapplicable provisions of law required by paragraph (2) unless 
        the Council makes a written determination that it would not be 
        in the best interest of the Federal Government to exempt 
        subcontracts under a contract for the procurement of commercial 
        items from the applicability of the provision.
          (4) Waiver not authorized.--This subsection does not authorize 
        the waiver of the applicability of any provision of law with 
        respect to any subcontract under a contract with a prime 
        contractor reselling or distributing commercial items of another 
        contractor without adding value.

  (d) Covered Law.--A provision of law referred to in subsections (b)(2) 
and (c) is a provision of law that the Council determines sets forth 
policies, procedures, requirements, or restrictions for the procurement 
of property or services by the Federal Government, except for a 
provision of law that--
          (1) provides for criminal or civil penalties; or
          (2) specifically refers to this section and provides that, 
        notwithstanding this section, it shall be applicable to 
        contracts for the procurement of commercial items.

  (e) Petition.--A person may petition the Administrator to take 
appropriate action when a provision of law described in subsection (d) 
is not included on the list of inapplicable provisions of law as 
required by subsection (b) or (c) and the Council has not made a written 
determination pursuant to subsection (b)(2) or (c)(3). The Administrator 
shall revise the Federal Acquisition Regulation to include the provision 
on the list of inapplicable provisions of law unless the Council makes a 
determination pursuant to subsection (b)(2) or (c)(3) within 60 days 
after the petition is received.

Sec. 1907. List of laws inapplicable to procurements of commercially 
                        available off-the-shelf items

  (a) Inclusion in Federal Acquisition Regulation.--
          (1) In general.--The Federal Acquisition Regulation shall 
        include a list of provisions of law that are inapplicable to 
        contracts for the procurement of commercially available off-the-
        shelf items. A provision of law properly included on the list 
        pursuant to paragraph (2) does not apply to contracts for the 
        procurement of commercially available off-the-shelf items. This 
        section does not render a provision of law not included on the 
        list inapplicable to contracts for the procurement of 
        commercially available off-the-shelf items.
          (2) Laws to be included.--A provision of law described in 
        subsection (b) shall be included on the list of inapplicable

[[Page 124 STAT. 3725]]

        provisions of law required by paragraph (1) unless the 
        Administrator makes a written determination that it would not be 
        in the best interest of the Federal Government to exempt 
        contracts for the procurement of commercially available off-the-
        shelf items from the applicability of the provision.
          (3) Other authorities or responsibilities not affected.--This 
        section does not modify, supersede, impair, or restrict 
        authorities or responsibilities under--
                  (A) section 15 of the Small Business Act (15 U.S.C. 
                644); or
                  (B) bid protest procedures developed under the 
                authority of--
                        (i) subchapter V of chapter 35 of title 31;
                        (ii) section 2305(e) and (f) of title 10; or
                        (iii) sections 3706 and 3707 of this title.

  (b) Covered Law.--Except as provided in subsection (a)(3), a provision 
of law referred to in subsection (a)(1) is a provision of law that the 
Administrator determines imposes Federal Government-unique policies, 
procedures, requirements, or restrictions for the procurement of 
property or services on persons whom the Federal Government has awarded 
contracts for the procurement of commercially available off-the-shelf 
items, except for a provision of law that--
          (1) provides for criminal or civil penalties; or
          (2) specifically refers to this section and provides that, 
        notwithstanding this section, it shall be applicable to 
        contracts for the procurement of commercially available off-the-
        shelf items.

Sec. 1908. Inflation adjustment of acquisition-related dollar thresholds

  (a) Definition.--In this section, the term ``Council'' has the meaning 
given that term in section 1301 of this title.
  (b) Application.--
          (1) In general.--Except as provided in paragraph (2), the 
        requirement for adjustment under subsection (c) applies to a 
        dollar threshold that is specified in law as a factor in 
        defining the scope of the applicability of a policy, procedure, 
        requirement, or restriction provided in that law to the 
        procurement of property or services by an executive agency, as 
        the Council determines.
          (2) Exceptions.--Subsection (c) does not apply to dollar 
        thresholds--
                  (A) in chapter 67 of this title;
                  (B) in sections 3141 to 3144, 3146, and 3147 of title 
                40; or
                  (C) the United States Trade Representative establishes 
                pursuant to title III of the Trade Agreements Act of 
                1979 (19 U.S.C. 2511 et seq.).
          (3) Relationship to other inflation adjustment authorities.--
        This section supersedes the applicability of other provisions of 
        law that provide for the adjustment of a dollar threshold that 
        is adjustable under this section.

  (c) Requirement for Periodic Adjustment.--
          (1) Baseline constant dollar value.--For purposes of paragraph 
        (2), the baseline constant dollar value for a dollar threshold--

[[Page 124 STAT. 3726]]

                  (A) in effect on October 1, 2000, that was first 
                specified in a law that took effect on or before October 
                1, 2000, is the October 1, 2000, constant dollar value 
                of that dollar threshold; and
                  (B) specified in a law that takes effect after October 
                1, 2000, is the constant dollar value of that threshold 
                as of the effective date of that dollar threshold 
                pursuant to that law.
          (2) Adjustment.--On October 1 of each year evenly divisible by 
        5, the Council shall adjust each acquisition-related dollar 
        threshold provided by law, as described in subsection (b)(1), to 
        the baseline constant dollar value of that threshold.
          (3) Exclusive means of adjustment.--A dollar threshold 
        adjustable under this section shall be adjusted only as provided 
        in this section.

  (d) Publication.--The Council shall publish a notice of the adjusted 
dollar thresholds under this section in the Federal Register. The 
thresholds take effect on the date of publication.
  (e) Calculation.--An adjustment under this section shall be--
          (1) calculated on the basis of changes in the Consumer Price 
        Index for all-urban consumers published monthly by the Secretary 
        of Labor; and
          (2) rounded, in the case of a dollar threshold that on the day 
        before the adjustment is--
                  (A) less than $10,000, to the nearest $500;
                  (B) not less than $10,000, but less than $100,000, to 
                the nearest $5,000;
                  (C) not less than $100,000, but less than $1,000,000, 
                to the nearest $50,000; and
                  (D) $1,000,000 or more, to the nearest $500,000.

  (f) Petition for Inclusion of Omitted Threshold.--
          (1) Petition submitted to administrator.--A person may request 
        adjustment of a dollar threshold adjustable under this section 
        that is not included in a notice of adjustment published under 
        subsection (d) by submitting a petition for adjustment to the 
        Administrator.
          (2) Actions of administrator.--On receipt of a petition for 
        adjustment of a dollar threshold under paragraph (1), the 
        Administrator--
                  (A) shall determine, in writing, whether the dollar 
                threshold is required to be adjusted under this section; 
                and
                  (B) on determining that it should be adjusted, shall 
                publish in the Federal Register a revised notice of the 
                adjustment dollar thresholds under this section that 
                includes the adjustment of the dollar threshold covered 
                by the petition.
          (3) Effective date of adjustment by petition.--The adjustment 
        of a dollar threshold pursuant to a petition under this 
        subsection takes effect on the date the revised notice adding 
        the adjustment under paragraph (2)(B) is published.

CHAPTER 21--RESTRICTIONS ON OBTAINING AND DISCLOSING CERTAIN INFORMATION

Sec.
2101.  Definitions.
2102.  Prohibitions on disclosing and obtaining procurement information.

[[Page 124 STAT. 3727]]

2103.  Actions required of procurement officers when contacted regarding 
           non-Federal employment.
2104.  Prohibition on former official's acceptance of compensation from 
           contractor.
2105.  Penalties and administrative actions.
2106.  Reporting information believed to constitute evidence of offense.
2107.  Savings provisions.

Sec. 2101. Definitions

  In this chapter:
          (1) Contracting officer.--The term ``contracting officer'' 
        means an individual who, by appointment in accordance with 
        applicable regulations, has the authority to enter into a 
        Federal agency procurement contract on behalf of the Government 
        and to make determinations and findings with respect to the 
        contract.
          (2) Contractor bid or proposal information.--The term 
        ``contractor bid or proposal information'' means any of the 
        following information submitted to a Federal agency as part of, 
        or in connection with, a bid or proposal to enter into a Federal 
        agency procurement contract, if that information previously has 
        not been made available to the public or disclosed publicly:
                  (A) Cost or pricing data (as defined in section 
                2306a(h) of title 10 with respect to procurements 
                subject to that section and section 3501(a) of this 
                title with respect to procurements subject to that 
                section).
                  (B) Indirect costs and direct labor rates.
                  (C) Proprietary information about manufacturing 
                processes, operations, or techniques marked by the 
                contractor in accordance with applicable law or 
                regulation.
                  (D) Information marked by the contractor as 
                ``contractor bid or proposal information'', in 
                accordance with applicable law or regulation.
          (3) Federal agency.--The term ``Federal agency'' has the 
        meaning given that term in section 102 of title 40.
          (4) Federal agency procurement.--The term ``Federal agency 
        procurement'' means the acquisition (by using competitive 
        procedures and awarding a contract) of goods or services 
        (including construction) from non-Federal sources by a Federal 
        agency using appropriated funds.
          (5) Official.--The term ``official'' means--
                  (A) an officer, as defined in section 2104 of title 5;
                  (B) an employee, as defined in section 2105 of title 
                5; and
                  (C) a member of the uniformed services, as defined in 
                section 2101(3) of title 5.
          (6) Protest.--The term ``protest'' means a written objection 
        by an interested party to the award or proposed award of a 
        Federal agency procurement contract, pursuant to subchapter V of 
        chapter 35 of title 31.
          (7) Source selection information.--The term ``source selection 
        information'' means any of the following information prepared 
        for use by a Federal agency to evaluate a bid or proposal to 
        enter into a Federal agency procurement contract, if that 
        information previously has not been made available to the public 
        or disclosed publicly:
                  (A) Bid prices submitted in response to a Federal 
                agency solicitation for sealed bids, or lists of those 
                bid prices before public bid opening.

[[Page 124 STAT. 3728]]

                  (B) Proposed costs or prices submitted in response to 
                a Federal agency solicitation, or lists of those 
                proposed costs or prices.
                  (C) Source selection plans.
                  (D) Technical evaluation plans.
                  (E) Technical evaluations of proposals.
                  (F) Cost or price evaluations of proposals.
                  (G) Competitive range determinations that identify 
                proposals that have a reasonable chance of being 
                selected for award of a contract.
                  (H) Rankings of bids, proposals, or competitors.
                  (I) Reports and evaluations of source selection 
                panels, boards, or advisory councils.
                  (J) Other information marked as ``source selection 
                information'' based on a case-by-case determination by 
                the head of the agency, the head's designee, or the 
                contracting officer that its disclosure would jeopardize 
                the integrity or successful completion of the Federal 
                agency procurement to which the information relates.

Sec. 2102. Prohibitions on disclosing and obtaining procurement 
                        information

  (a) Prohibition on Disclosing Procurement Information.--
          (1) In general.--Except as provided by law, a person described 
        in paragraph (3) shall not knowingly disclose contractor bid or 
        proposal information or source selection information before the 
        award of a Federal agency procurement contract to which the 
        information relates.
          (2) Employee of private sector organization.--In addition to 
        the restriction in paragraph (1), an employee of a private 
        sector organization assigned to an agency under chapter 37 of 
        title 5 shall not knowingly disclose contractor bid or proposal 
        information or source selection information during the 3-year 
        period after the employee's assignment ends, except as provided 
        by law.
          (3) Application.--Paragraph (1) applies to a person that--
                  (A)(i) is a present or former official of the Federal 
                Government; or
                  (ii) is acting or has acted for or on behalf of, or 
                who is advising or has advised the Federal Government 
                with respect to, a Federal agency procurement; and
                  (B) by virtue of that office, employment, or 
                relationship has or had access to contractor bid or 
                proposal information or source selection information.

  (b) Prohibition on Obtaining Procurement Information.--Except as 
provided by law, a person shall not knowingly obtain contractor bid or 
proposal information or source selection information before the award of 
a Federal agency procurement contract to which the information relates.

Sec. 2103. Actions required of procurement officers when contacted 
                        regarding non-Federal employment

  (a) Actions Required.--An agency official participating personally and 
substantially in a Federal agency procurement for a contract in excess 
of the simplified acquisition threshold who contacts or is contacted by 
a person that is a bidder or offeror in that Federal agency procurement 
regarding possible non-Federal employment for that official shall--

[[Page 124 STAT. 3729]]

          (1) promptly report the contact in writing to the official's 
        supervisor and to the designated agency ethics official (or 
        designee) of the agency in which the official is employed; and
          (2)(A) reject the possibility of non-Federal employment; or
          (B) disqualify himself or herself from further personal and 
        substantial participation in that Federal agency procurement 
        until the agency authorizes the official to resume participation 
        in the procurement, in accordance with the requirements of 
        section 208 of title 18 and applicable agency regulations on the 
        grounds that--
                  (i) the person is no longer a bidder or offeror in 
                that Federal agency procurement; or
                  (ii) all discussions with the bidder or offeror 
                regarding possible non-Federal employment have 
                terminated without an agreement or arrangement for 
                employment.

  (b) Retention of Reports.--The agency shall retain each report 
required by this section for not less than 2 years following the 
submission of the report. The reports shall be made available to the 
public on request, except that any part of a report that is exempt from 
the disclosure requirements of section 552 of title 5 under subsection 
(b)(1) of that section may be withheld from disclosure to the public.
  (c) Persons Subject to Penalties.--The following are subject to the 
penalties and administrative actions set forth in section 2105 of this 
title:
          (1) An official who knowingly fails to comply with the 
        requirements of this section.
          (2) A bidder or offeror that engages in employment discussions 
        with an official who is subject to the restrictions of this 
        section, knowing that the official has not complied with 
        paragraph (1) or (2) of subsection (a).

Sec. 2104. Prohibition on former official's acceptance of compensation 
                        from contractor

  (a) Prohibition.--A former official of a Federal agency may not accept 
compensation from a contractor as an employee, officer, director, or 
consultant of the contractor within one year after the official--
          (1) served, when the contractor was selected or awarded a 
        contract, as the procuring contracting officer, the source 
        selection authority, a member of the source selection evaluation 
        board, or the chief of a financial or technical evaluation team 
        in a procurement in which that contractor was selected for award 
        of a contract in excess of $10,000,000;
          (2) served as the program manager, deputy program manager, or 
        administrative contracting officer for a contract in excess of 
        $10,000,000 awarded to that contractor; or
          (3) personally made for the Federal agency a decision to--
                  (A) award a contract, subcontract, modification of a 
                contract or subcontract, or a task order or delivery 
                order in excess of $10,000,000 to that contractor;
                  (B) establish overhead or other rates applicable to 
                one or more contracts for that contractor that are 
                valued in excess of $10,000,000;
                  (C) approve issuance of one or more contract payments 
                in excess of $10,000,000 to that contractor; or
                  (D) pay or settle a claim in excess of $10,000,000 
                with that contractor.

[[Page 124 STAT. 3730]]

  (b) When Compensation May Be Accepted.--Subsection (a) does not 
prohibit a former official of a Federal agency from accepting 
compensation from a division or affiliate of a contractor that does not 
produce the same or similar products or services as the entity of the 
contractor that is responsible for the contract referred to in paragraph 
(1), (2), or (3) of subsection (a).
  (c) Implementing Regulations.--Regulations implementing this section 
shall include procedures for an official or former official of a Federal 
agency to request advice from the appropriate designated agency ethics 
official regarding whether the official or former official is or would 
be precluded by this section from accepting compensation from a 
particular contractor.
  (d) Persons Subject to Penalties.--The following are subject to the 
penalties and administrative actions set forth in section 2105 of this 
title:
          (1) A former official who knowingly accepts compensation in 
        violation of this section.
          (2) A contractor that provides compensation to a former 
        official knowing that the official accepts the compensation in 
        violation of this section.

Sec. 2105. Penalties and administrative actions

  (a) Criminal Penalties.--A person that violates section 2102 of this 
title to exchange information covered by section 2102 of this title for 
anything of value or to obtain or give a person a competitive advantage 
in the award of a Federal agency procurement contract shall be fined 
under title 18, imprisoned for not more than 5 years, or both.
  (b) Civil Penalties.--The Attorney General may bring a civil action in 
an appropriate district court of the United States against a person that 
engages in conduct that violates section 2102, 2103, or 2104 of this 
title. On proof of that conduct by a preponderance of the evidence--
          (1) an individual is liable to the Federal Government for a 
        civil penalty of not more than $50,000 for each violation plus 
        twice the amount of compensation that the individual received or 
        offered for the prohibited conduct; and
          (2) an organization is liable to the Federal Government for a 
        civil penalty of not more than $500,000 for each violation plus 
        twice the amount of compensation that the organization received 
        or offered for the prohibited conduct.

  (c) Administrative Actions.--
          (1) Types of action that federal agency may take.--A Federal 
        agency that receives information that a contractor or a person 
        has violated section 2102, 2103, or 2104 of this title shall 
        consider taking one or more of the following actions, as 
        appropriate:
                  (A) Canceling the Federal agency procurement, if a 
                contract has not yet been awarded.
                  (B) Rescinding a contract with respect to which--
                        (i) the contractor or someone acting for the 
                      contractor has been convicted for an offense 
                      punishable under subsection (a); or
                        (ii) the head of the agency that awarded the 
                      contract has determined, based on a preponderance 
                      of the evidence, that the contractor or a person 
                      acting for the contractor has engaged in conduct 
                      constituting the offense.

[[Page 124 STAT. 3731]]

                  (C) Initiating a suspension or debarment proceeding 
                for the protection of the Federal Government in 
                accordance with procedures in the Federal Acquisition 
                Regulation.
                  (D) Initiating an adverse personnel action, pursuant 
                to the procedures in chapter 75 of title 5 or other 
                applicable law or regulation.
          (2) Amount government entitled to recover.--When a Federal 
        agency rescinds a contract pursuant to paragraph (1)(B), the 
        Federal Government is entitled to recover, in addition to any 
        penalty prescribed by law, the amount expended under the 
        contract.
          (3) Present responsibility affected by conduct.--For purposes 
        of a suspension or debarment proceeding initiated pursuant to 
        paragraph (1)(C), engaging in conduct constituting an offense 
        under section 2102, 2103, or 2104 of this title affects the 
        present responsibility of a Federal Government contractor or 
        subcontractor.

Sec. 2106. Reporting information believed to constitute evidence of 
                        offense

  A person may not file a protest against the award or proposed award of 
a Federal agency procurement contract alleging a violation of section 
2102, 2103, or 2104 of this title, and the Comptroller General may not 
consider that allegation in deciding a protest, unless the person, no 
later than 14 days after the person first discovered the possible 
violation, reported to the Federal agency responsible for the 
procurement the information that the person believed constitutes 
evidence of the offense.

Sec. 2107. Savings provisions

  This chapter does not--
          (1) restrict the disclosure of information to, or its receipt 
        by, a person or class of persons authorized, in accordance with 
        applicable agency regulations or procedures, to receive that 
        information;
          (2) restrict a contractor from disclosing its own bid or 
        proposal information or the recipient from receiving that 
        information;
          (3) restrict the disclosure or receipt of information relating 
        to a Federal agency procurement after it has been canceled by 
        the Federal agency before contract award unless the Federal 
        agency plans to resume the procurement;
          (4) prohibit individual meetings between a Federal agency 
        official and an offeror or potential offeror for, or a recipient 
        of, a contract or subcontract under a Federal agency 
        procurement, provided that unauthorized disclosure or receipt of 
        contractor bid or proposal information or source selection 
        information does not occur;
          (5) authorize the withholding of information from, nor 
        restrict its receipt by, Congress, a committee or subcommittee 
        of Congress, the Comptroller General, a Federal agency, or an 
        inspector general of a Federal agency;
          (6) authorize the withholding of information from, nor 
        restrict its receipt by, the Comptroller General in the course 
        of a protest against the award or proposed award of a Federal 
        agency procurement contract; or
          (7) limit the applicability of a requirement, sanction, 
        contract penalty, or remedy established under another law or 
        regulation.

[[Page 124 STAT. 3732]]

                        CHAPTER 23--MISCELLANEOUS

Sec.
2301.  Use of electronic commerce in Federal procurement.
2302.  Rights in technical data.
2303.  Ethics safeguards related to contractor conflicts of interest.
2304.  Conflict of interest standards for consultants.
2305.  Authority of Director of Office of Management and Budget not 
           affected.
2306.  Openness of meetings.
2307.  Comptroller General's access to information.
2308.  Modular contracting for information technology.
2309.  Protection of constitutional rights of contractors.
2310.  Performance-based contracts or task orders for services to be 
           treated as contracts for the procurement of commercial items.
2311.  Enhanced transparency on interagency contracting and other 
           transactions.
2312.  Contingency Contracting Corps.
2313.  Database for Federal agency contract and grant officers and 
           suspension and debarment officials.

Sec. 2301. Use of electronic commerce in Federal procurement

  (a) Definition.--For the purposes of this section, the term 
``electronic commerce'' means electronic techniques for accomplishing 
business transactions, including electronic mail or messaging, World 
Wide Web technology, electronic bulletin boards, purchase cards, 
electronic funds transfers, and electronic data interchange.
  (b) Establishment, Maintenance, and Use of Electronic Commerce 
Procedures and Processes.--The head of each executive agency, after 
consulting with the Administrator, shall establish, maintain, and use, 
to the maximum extent that is practicable and cost-effective, procedures 
and processes that employ electronic commerce in the conduct and 
administration of the procurement system of the agency.
  (c) Applicable Standards.--In conducting electronic commerce, the head 
of an executive agency shall apply nationally and internationally 
recognized standards that broaden interoperability and ease the 
electronic interchange of information.
  (d) Requirements of Systems, Technologies, Procedures, and 
Processes.--The head of each executive agency shall ensure that systems, 
technologies, procedures, and processes established pursuant to this 
section--
          (1) are implemented with uniformity throughout the agency, to 
        the extent practicable;
          (2) are implemented only after granting due consideration to 
        the use or partial use, as appropriate, of existing electronic 
        commerce and electronic data interchange systems and 
        infrastructures such as the Federal acquisition computer network 
        architecture known as FACNET;
          (3) facilitate access to Federal Government procurement 
        opportunities, including opportunities for small business 
        concerns, socially and economically disadvantaged small business 
        concerns, and business concerns owned predominantly by women; 
        and
          (4) ensure that any notice of agency requirements or agency 
        solicitation for contract opportunities is provided in a form 
        that allows convenient and universal user access through a 
        single, Government-wide point of entry.

  (e) Implementation.--In carrying out the requirements of this section, 
the Administrator shall--
          (1) issue policies to promote, to the maximum extent 
        practicable, uniform implementation of this section by executive

[[Page 124 STAT. 3733]]

        agencies, with due regard for differences in program 
        requirements among agencies that may require departures from 
        uniform procedures and processes in appropriate cases, when 
        warranted because of the agency mission;
          (2) ensure that the head of each executive agency complies 
        with the requirements of subsection (d); and
          (3) 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.

Sec. 2302. Rights in technical data

  (a) Where Defined.--The legitimate proprietary interest of the Federal 
Government and of a contractor in technical or other data shall be 
defined in regulations prescribed as part of the Federal Acquisition 
Regulation.
  (b) General Extent of Regulations.--
          (1) Other rights not impaired.--Regulations prescribed under 
        subsection (a) may not impair a right of the Federal Government 
        or of a contractor with respect to a patent or copyright or 
        another right in technical data otherwise established by law.
          (2) Limitation on requiring data be provided to the 
        government.--With respect to executive agencies subject to 
        division C, regulations prescribed under subsection (a) shall 
        provide that the Federal Government may not require a person 
        that has developed a product (or process offered or to be 
        offered for sale to the public) to provide to the Federal 
        Government technical data relating to the design (or development 
        or manufacture of the product or process) as a condition of 
        procurement by the Federal Government of the product or process. 
        This paragraph does not apply to data that may be necessary for 
        the Federal Government to operate and maintain the product or 
        use the process if the Federal Government obtains it as an 
        element of performance under the contract.

  (c) Technical Data Developed With Federal Funds.--
          (1) Use by government and agencies.--Except as otherwise 
        expressly provided by Federal statute, with respect to executive 
        agencies subject to division C, regulations prescribed under 
        subsection (a) shall provide that--
                  (A) the Federal Government has unlimited rights in 
                technical data developed exclusively with Federal funds 
                if delivery of the data--
                        (i) was required as an element of performance 
                      under a contract; and
                        (ii) is needed to ensure the competitive 
                      acquisition of supplies or services that will be 
                      required in substantial quantities in the future; 
                      and
                  (B) the Federal Government and each agency of the 
                Federal Government has an unrestricted, royalty-free 
                right to use, or to have its contractors use, for 
                governmental purposes (excluding publication outside the 
                Federal Government) technical data developed exclusively 
                with Federal funds.

[[Page 124 STAT. 3734]]

          (2) Requirements in addition to other rights of the 
        government.--The requirements of paragraph (1) are in addition 
        to and not in lieu of any other rights the Federal Government 
        may have pursuant to law.

  (d) Factors To Be Considered in Prescribing Regulations.--The 
following factors shall be considered in prescribing regulations under 
subsection (a):
          (1) Whether the item or process to which the technical data 
        pertains was developed--
                  (A) exclusively with Federal funds;
                  (B) exclusively at private expense; or
                  (C) in part with Federal funds and in part at private 
                expense.
          (2) The statement of congressional policy and objectives in 
        section 200 of title 35, the statement of purposes in section 
        2(b) of the Small Business Innovation Development Act of 1982 
        (Public Law 97-219, 15 U.S.C. 638 note), and the declaration of 
        policy in section 2 of the Small Business Act (15 U.S.C. 631).
          (3) The interest of the Federal Government in increasing 
        competition and lowering costs by developing and locating 
        alternative sources of supply and manufacture.

  (e) Provisions Required in Contracts.--Regulations prescribed under 
subsection (a) shall require that a contract for property or services 
entered into by an executive agency contain appropriate provisions 
relating to technical data, including provisions--
          (1) defining the respective rights of the Federal Government 
        and the contractor or subcontractor (at any tier) regarding 
        technical data to be delivered under the contract;
          (2) specifying technical data to be delivered under the 
        contract and schedules for delivery;
          (3) establishing or referencing procedures for determining the 
        acceptability of technical data to be delivered under the 
        contract;
          (4) establishing separate contract line items for technical 
        data to be delivered under the contract;
          (5) to the maximum practicable extent, identifying, in advance 
        of delivery, technical data which is to be delivered with 
        restrictions on the right of the Federal Government to use the 
        data;
          (6) requiring the contractor to revise any technical data 
        delivered under the contract to reflect engineering design 
        changes made during the performance of the contract and 
        affecting the form, fit, and function of the items specified in 
        the contract and to deliver the revised technical data to an 
        agency within a time specified in the contract;
          (7) requiring the contractor to furnish written assurance, 
        when technical data is delivered or is made available, that the 
        technical data is complete and accurate and satisfies the 
        requirements of the contract concerning technical data;
          (8) establishing remedies to be available to the Federal 
        Government when technical data required to be delivered or made 
        available under the contract is found to be incomplete or 
        inadequate or to not satisfy the requirements of the contract 
        concerning technical data; and
          (9) authorizing the head of the agency to withhold payments 
        under the contract (or exercise another remedy the head of the 
        agency considers appropriate) during any period if the

[[Page 124 STAT. 3735]]

        contractor does not meet the requirements of the contract 
        pertaining to the delivery of technical data.

Sec. 2303. Ethics safeguards related to contractor conflicts of interest

  (a) Definition.--In this section, the term ``relevant acquisition 
function'' means an acquisition function closely associated with 
inherently governmental functions.
  (b) Policy on Personal Conflicts of Interest by Contractor 
Employees.--
          (1) Development and issuance of policy.--The Administrator 
        shall develop and issue a standard policy to prevent personal 
        conflicts of interest by contractor employees performing 
        relevant acquisition functions (including the development, 
        award, and administration of Federal Government contracts) for 
        or on behalf of a Federal agency or department.
          (2) Elements of policy.--The policy shall--
                  (A) define ``personal conflict of interest'' as it 
                relates to contractor employees performing relevant 
                acquisition functions; and
                  (B) require each contractor whose employees perform 
                relevant acquisition functions to--
                        (i) identify and prevent personal conflicts of 
                      interest for the employees;
                        (ii) prohibit contractor employees who have 
                      access to non-public government information 
                      obtained while performing relevant acquisition 
                      functions from using the information for personal 
                      gain;
                        (iii) report any personal conflict-of-interest 
                      violation by an employee to the applicable 
                      contracting officer or contracting officer's 
                      representative as soon as it is identified;
                        (iv) maintain effective oversight to verify 
                      compliance with personal conflict-of-interest 
                      safeguards;
                        (v) have procedures in place to screen for 
                      potential conflicts of interest for all employees 
                      performing relevant acquisition functions; and
                        (vi) take appropriate disciplinary action in the 
                      case of employees who fail to comply with policies 
                      established pursuant to this section.
          (3) Contract clause.--
                  (A) Contents.--The Administrator shall develop a 
                personal conflicts-of-interest clause or a set of 
                clauses for inclusion in solicitations and contracts 
                (and task or delivery orders) for the performance of 
                relevant acquisition functions that sets forth--
                        (i) the personal conflicts-of-interest policy 
                      developed under this subsection; and
                        (ii) the contractor's responsibilities under the 
                      policy.
                  (B) Effective date.--Subparagraph (A) shall take 
                effect 300 days after October 14, 2008, and shall apply 
                to--
                        (i) contracts entered into on or after that 
                      effective date; and
                        (ii) task or delivery orders awarded on or after 
                      that effective date, regardless of whether the 
                      contracts pursuant to which the task or delivery 
                      orders are awarded are entered before, on, or 
                      after October 14, 2008.

[[Page 124 STAT. 3736]]

          (4) Applicability.--
                  (A) Contracts in excess of the simplified acquisition 
                threshold.--This subsection shall apply to any contract 
                for an amount in excess of the simplified acquisition 
                threshold (as defined in section 134 of this title) if 
                the contract is for the performance of relevant 
                acquisition functions.
                  (B) Partial applicability.--If only a portion of a 
                contract described in subparagraph (A) is for the 
                performance of relevant acquisition functions, then this 
                subsection applies only to that portion of the contract.

  (c) Best Practices.--The Administrator shall, in consultation with the 
Director of the Office of Government Ethics, develop and maintain a 
repository of best practices relating to the prevention and mitigation 
of organizational and personal conflicts of interest in Federal 
contracting.

Sec. 2304. Conflict of interest standards for consultants

  (a) Content of Regulations.--The Administrator shall prescribe under 
this division Government-wide regulations that set forth--
          (1) conflict of interest standards for persons who provide 
        consulting services described in subsection (b); and
          (2) procedures, including registration, certification, and 
        enforcement requirements as may be appropriate, to promote 
        compliance with the standards.

  (b) Services Subject to Regulations.--Regulations required by 
subsection (a) apply to--
          (1) advisory and assistance services provided to the Federal 
        Government to the extent necessary to identify and evaluate the 
        potential for conflicts of interest that could be prejudicial to 
        the interests of the United States;
          (2) services related to support of the preparation or 
        submission of bids and proposals for Federal contracts to the 
        extent that inclusion of the services in the regulations is 
        necessary to identify and evaluate the potential for conflicts 
        of interest that could be prejudicial to the interests of the 
        United States; and
          (3) other services related to Federal contracts as specified 
        in the regulations prescribed under subsection (a) to the extent 
        necessary to identify and evaluate the potential for conflicts 
        of interest that could be prejudicial to the interests of the 
        United States.

  (c) Intelligence Activities Exemption.--
          (1) Activities that may be exempt.--Intelligence activities as 
        defined in section 3.4(e) of Executive Order No. 12333 or a 
        comparable definitional section in any successor order may be 
        exempt from the regulations required by subsection (a).
          (2) Report.--The Director of National Intelligence shall 
        report to the Intelligence and Appropriations Committees of 
        Congress each January 1, delineating the activities and 
        organizations that have been exempted under paragraph (1).

  (d) Presidential Determination.--Before the regulations required by 
subsection (a) are prescribed, the President shall determine if 
prescribing the regulations will have a significantly adverse effect on 
the accomplishment of the mission of the Defense Department or another 
Federal agency. If the President determines that the regulations will 
have such an adverse effect, the President

[[Page 124 STAT. 3737]]

shall so report to the appropriate committees of the Senate and the 
House of Representatives, stating in full the reasons for the 
determination. If such a report is submitted, the requirement for the 
regulations shall be null and void.

Sec. 2305. Authority of Director of Office of Management and Budget not 
                        affected

  This division does not limit the authorities and responsibilities of 
the Director of the Office of Management and Budget in effect on 
December 1, 1983.

Sec. 2306. Openness of meetings

  The Administrator by regulation shall require that--
          (1) formal meetings of the Office of Federal Procurement 
        Policy, as designated by the Administrator, for developing 
        procurement policies and regulations be open to the public; and
          (2) public notice of each meeting be given not less than 10 
        days prior to the meeting.

Sec. 2307. Comptroller General's access to information

  The Administrator and personnel in the Office of Federal Procurement 
Policy shall furnish information the Comptroller General may require to 
discharge the responsibilities of the Comptroller General. For this 
purpose, the Comptroller General or representatives of the Comptroller 
General shall have access to all books, documents, papers, and records 
of the Office of Federal Procurement Policy.

Sec. 2308. Modular contracting for information technology

  (a) Use.--To the maximum extent practicable, the head of an executive 
agency should use modular contracting for an acquisition of a major 
system of information technology.
  (b) Modular Contracting Described.--Under modular contracting, an 
executive agency's need for a system is satisfied in successive 
acquisitions of interoperable increments. Each increment complies with 
common or commercially accepted standards applicable to information 
technology so that the increments are compatible with other increments 
of information technology comprising the system.
  (c) Provisions in Federal Acquisition Regulation.--The Federal 
Acquisition Regulation shall provide that--
          (1) under the modular contracting process, an acquisition of a 
        major system of information technology may be divided into 
        several smaller acquisition increments that--
                  (A) are easier to manage individually than would be 
                one comprehensive acquisition;
                  (B) address complex information technology objectives 
                incrementally in order to enhance the likelihood of 
                achieving workable solutions for attaining those 
                objectives;
                  (C) provide for delivery, implementation, and testing 
                of workable systems or solutions in discrete increments, 
                each of which comprises a system or solution that is not 
                dependent on a subsequent increment in order to perform 
                its principal functions; and
                  (D) provide an opportunity for subsequent increments 
                of the acquisition to take advantage of any evolution in 
                technology or needs that occurs during conduct of the 
                earlier increments;

[[Page 124 STAT. 3738]]

          (2) to the maximum extent practicable, a contract for an 
        increment of an information technology acquisition should be 
        awarded within 180 days after the solicitation is issued and, if 
        the contract for that increment cannot be awarded within that 
        period, the increment should be considered for cancellation; and
          (3) the information technology provided for in a contract for 
        acquisition of information technology should be delivered within 
        18 months after the solicitation resulting in award of the 
        contract was issued.

Sec. 2309. Protection of constitutional rights of contractors

  (a) Prohibition on Requiring Waiver of Rights.--A contractor may not 
be required, as a condition for entering into a contract with the 
Federal Government, to waive a right under the Constitution for a 
purpose relating to the Chemical Weapons Convention Implementation Act 
of 1998 (22 U.S.C. 6701 et seq.) or the Chemical Weapons Convention (as 
defined in section 3 of that Act (22 U.S.C. 6701)).
  (b) Permissible Contract Clauses.--Subsection (a) does not prohibit an 
executive agency from including in a contract a clause that requires the 
contractor to permit inspections to ensure that the contractor is 
performing the contract in accordance with the provisions of the 
contract.

Sec. 2310. Performance-based contracts or task orders for services to be 
                        treated as contracts for the procurement of 
                        commercial items

  (a) Criteria.--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.--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 2 years after November 24, 2003, the 
Director of the Office of Management and Budget shall prepare and submit 
to the Committees on Homeland Security and Governmental Affairs and on 
Armed Services of the Senate and the Committees on Oversight and 
Government Reform and on Armed Services of the House of Representatives 
a report on the contracts

[[Page 124 STAT. 3739]]

or task orders treated as contracts for commercial items using the 
authority of this section. The report shall include data on the use of 
the authority, both government-wide and for each department and agency.
  (d) Expiration.--The authority under this section expires 10 years 
after November 24, 2003.

Sec. 2311. Enhanced transparency on interagency contracting and other 
                        transactions

  The Director of the Office of Management and Budget shall direct 
appropriate revisions to the Federal Procurement Data System or any 
successor system to facilitate the collection of complete, timely, and 
reliable data on interagency contracting actions and on transactions 
other than contracts, grants, and cooperative agreements issued pursuant 
to section 2371 of title 10 or similar authorities. The Director of the 
Office of Management and Budget shall ensure that data, consistent with 
what is collected for contract actions, is obtained on--
          (1) interagency contracting actions, including data at the 
        task or delivery-order level; and
          (2) other transactions, including the initial award and any 
        subsequent modifications awarded or orders issued (other than 
        transactions that are reported through the Federal Assistance 
        Awards Data System).

Sec. 2312. Contingency Contracting Corps

  (a) Definition.--In this section, the term ``Corps'' means the 
Contingency Contracting Corps established in subsection (b).
  (b) Establishment.--The Administrator of General Services, pursuant to 
policies established by the Office of Management and Budget, and in 
consultation with the Secretary of Defense and the Secretary of Homeland 
Security, shall establish a Government-wide Contingency Contracting 
Corps.
  (c) Function.--The members of the Corps shall be available for 
deployment in responding to an emergency or major disaster, or a 
contingency operation, both within or outside the continental United 
States.
  (d) 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 the executive 
agency, are to be used--
          (1) in support of a contingency operation as defined in 
        section 101(a)(13) of title 10; or
          (2) to respond to an emergency or major disaster as defined in 
        section 102 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5122).

  (e) Membership.--Membership in the Corps shall be voluntary and open 
to all Federal employees and members of the Armed Forces who are members 
of the Federal acquisition workforce.
  (f) Education and Training.--The Administrator of General Services 
may, in consultation with the Director of the Federal Acquisition 
Institute and the Chief Acquisition Officers Council, establish 
educational and training requirements for members of the Corps. 
Education and training carried out pursuant to the requirements shall be 
paid for from funds available in the acquisition workforce training fund 
established pursuant to section 1703(i) of this title.

[[Page 124 STAT. 3740]]

  (g) Salary.--The salary for a member of the Corps shall be paid--
          (1) in the case of a member of the Armed Forces, out of funds 
        available to the Armed Force concerned; and
          (2) in the case of a Federal employee, out of funds available 
        to the employing agency.

  (h) Authority to Deploy the Corps.--
          (1) Director of the Office of Management and Budget.--The 
        Director of the Office of Management and Budget shall have the 
        authority, upon request by an executive agency, to determine 
        when members of the Corps shall be deployed, with the 
        concurrence of the head of the agency or agencies employing the 
        members to be deployed.
          (2) Secretary of Defense.--Nothing in this section shall 
        preclude the Secretary of Defense or the Secretary's designee 
        from deploying members of the Armed Forces or civilian personnel 
        of the Department of Defense in support of a contingency 
        operation as defined in section 101(a)(13) of title 10.

  (i) Annual Report.--
          (1) In general.--The Administrator of General Services shall 
        provide to the Committee on Homeland Security and Governmental 
        Affairs and the Committee on Armed Services of the Senate and 
        the Committee on Oversight and Government Reform and the 
        Committee on Armed Services of the House of Representatives an 
        annual report on the status of the Corps as of September 30 of 
        each fiscal year.
          (2) Content.--Each report under paragraph (1) shall include 
        the number of members of the Corps, the total cost of operating 
        the program, the number of deployments of members of the 
        program, and the performance of members of the program in 
        deployment.

Sec. 2313. Database for Federal agency contract and grant officers and 
                        suspension and debarment officials

  (a) In General.--Subject to the authority, direction, and control of 
the Director of the Office of Management and Budget, the Administrator 
of General Services shall establish and maintain a database of 
information regarding the integrity and performance of certain persons 
awarded Federal agency contracts and grants for use by Federal agency 
officials having authority over contracts and grants.
  (b) Persons Covered.--The database shall cover the following:
          (1) Any person awarded a Federal agency contract or grant in 
        excess of $500,000, if any information described in subsection 
        (c) exists with respect to the person.
          (2) Any person awarded such other category or categories of 
        Federal agency contract as the Federal Acquisition Regulation 
        may provide, if any information described in subsection (c) 
        exists with respect to the person.

  (c) Information Included.--With respect to a covered person, the 
database shall include information (in the form of a brief description) 
for the most recent 5-year period regarding the following:
          (1) Each civil or criminal proceeding, or any administrative 
        proceeding, in connection with the award or performance of a 
        contract or grant with the Federal Government with respect to 
        the person during the period to the extent that the proceeding 
        results in the following dispositions:

[[Page 124 STAT. 3741]]

                  (A) In a criminal proceeding, a conviction.
                  (B) In a civil proceeding, a finding of fault and 
                liability that results in the payment of a monetary 
                fine, penalty, reimbursement, restitution, or damages of 
                $5,000 or more.
                  (C) In an administrative proceeding, a finding of 
                fault and liability that results in--
                        (i) the payment of a monetary fine or penalty of 
                      $5,000 or more; or
                        (ii) the payment of a reimbursement, 
                      restitution, or damages in excess of $100,000.
                  (D) To the maximum extent practicable and consistent 
                with applicable laws and regulations, in a criminal, 
                civil, or administrative proceeding, a disposition of 
                the matter by consent or compromise with an 
                acknowledgment of fault by the person if the proceeding 
                could have led to any of the outcomes specified in 
                subparagraph (A), (B), or (C).
          (2) Each Federal contract and grant awarded to the person that 
        was terminated in the period due to default.
          (3) Each Federal suspension and debarment of the person.
          (4) Each Federal administrative agreement entered into by the 
        person and the Federal Government in the period to resolve a 
        suspension or debarment proceeding.
          (5) Each final finding by a Federal official in the period 
        that the person has been determined not to be a responsible 
        source under paragraph (3) or (4) of section 113 of this title.
          (6) Other information that shall be provided for purposes of 
        this section in the Federal Acquisition Regulation.
          (7) To the maximum extent practicable, information similar to 
        the information covered by paragraphs (1) to (4) in connection 
        with the award or performance of a contract or grant with a 
        State government.

  (d) Requirements Relating to Database Information.--
          (1) Direct input and update.--The Administrator of General 
        Services shall design and maintain the database in a manner that 
        allows the appropriate Federal agency officials to directly 
        input and update information in the database relating to actions 
        that the officials have taken with regard to contractors or 
        grant recipients.
          (2) Timeliness and accuracy.--The Administrator of General 
        Services shall develop policies to require--
                  (A) the timely and accurate input of information into 
                the database;
                  (B) the timely notification of any covered person when 
                information relevant to the person is entered into the 
                database; and
                  (C) opportunities for any covered person to submit 
                comments pertaining to information about the person for 
                inclusion in the database.

  (e) Use of Database.--
          (1) Availability to government officials.--The Administrator 
        of General Services shall ensure that the information in the 
        database is available to appropriate acquisition officials of 
        Federal agencies, other government officials as the 
        Administrator of General Services determines appropriate, and, 
        on request, the Chairman and Ranking Member of the committees of 
        Congress having jurisdiction.
          (2) Review and assessment of data.--

[[Page 124 STAT. 3742]]

                  (A) In general.--Before awarding a contract or grant 
                in excess of the simplified acquisition threshold under 
                section 134 of this title, the Federal agency official 
                responsible for awarding the contract or grant shall 
                review the database and consider all information in the 
                database with regard to any offer or proposal, and in 
                the case of a contract, shall consider other past 
                performance information available with respect to the 
                offeror in making any responsibility determination or 
                past performance evaluation for the offeror.
                  (B) Documentation in contract file.--The contract file 
                for each contract of a Federal agency in excess of the 
                simplified acquisition threshold shall document the 
                manner in which the material in the database was 
                considered in any responsibility determination or past 
                performance evaluation.

  (f) Disclosure in Applications.--The Federal Acquisition Regulation 
shall require that persons with Federal agency contracts and grants 
valued in total greater than $10,000,000 shall--
          (1) submit to the Administrator of General Services, in a 
        manner determined appropriate by the Administrator of General 
        Services, the information subject to inclusion in the database 
        as listed in subsection (c) current as of the date of submittal 
        of the information under this subsection; and
          (2) update the information submitted under paragraph (1) on a 
        semiannual basis.

  (g) Rulemaking.--The Administrator of General Services shall prescribe 
regulations that may be necessary to carry out this section.

                         Division C--Procurement

                           CHAPTER 31--GENERAL

Sec.
3101.  Applicability.
3102.  Delegation and assignment of powers, functions, and 
           responsibilities.
3103.  Acquisition programs.
3104.  Small business concerns.
3105.  New contracts and grants and merit-based selection procedures.
3106.  Erection, repair, or furnishing of public buildings and 
           improvements not authorized, and certain contracts not 
           permitted, by this division.

Sec. 3101. Applicability

  (a) In General.--An executive agency shall make purchases and 
contracts for property and services in accordance with this division and 
implementing regulations of the Administrator of General Services.
  (b) Simplified Acquisition Threshold and Procedures.--
          (1) Simplified acquisition threshold.--
                  (A) Definition.--For purposes of an acquisition by an 
                executive agency, the simplified acquisition threshold 
                is as specified in section 134 of this title.
                  (B) Inapplicable laws.--A law properly listed in the 
                Federal Acquisition Regulation pursuant to section 1905 
                of this title does not apply to or with respect to a 
                contract or subcontract that is not greater than the 
                simplified acquisition threshold.
          (2) Simplified acquisition procedures.--Simplified acquisition 
        procedures contained in the Federal Acquisition Regulation

[[Page 124 STAT. 3743]]

        pursuant to section 1901 of this title apply in executive 
        agencies as provided in section 1901.

  (c) Exceptions.--
          (1) In general.--This division does not apply--
                  (A) to the Department of Defense, the Coast Guard, and 
                the National Aeronautics and Space Administration; or
                  (B) except as provided in paragraph (2), when this 
                division is made inapplicable pursuant to law.
          (2) Applicability of certain laws related to advertising, 
        opening of bids, and length of contract.--Sections 6101, 6103, 
        and 6304 of this title do not apply to the procurement of 
        property or services made by an executive agency pursuant to 
        this division. However, when this division is made inapplicable 
        by any law, sections 6101 and 6103 of this title apply in the 
        absence of authority conferred by statute to procure without 
        advertising or without regard to section 6101 of this title. A 
        law that authorizes an executive agency (other than an executive 
        agency exempted from this division by this subsection) to 
        procure property or services without advertising or without 
        regard to section 6101 of this title is deemed to authorize the 
        procurement pursuant to the provisions of this division relating 
        to procedures other than sealed-bid procedures.

Sec. 3102. Delegation and assignment of powers, functions, and 
                        responsibilities

  (a) In General.--Except to the extent expressly prohibited by another 
law, the head of an executive agency may delegate to another officer or 
official of that agency any power under this division.
  (b) Procurements For or With Another Agency.--Subject to subsection 
(a), to facilitate the procurement of property and services covered by 
this division by an executive agency for another executive agency, and 
to facilitate joint procurement by executive agencies--
          (1) the head of an executive agency may delegate functions and 
        assign responsibilities relating to procurement to any officer 
        or employee within the agency;
          (2) the heads of 2 or more executive agencies, consistent with 
        section 1535 of title 31 and regulations prescribed under 
        section 1074 of the Federal Acquisition Streamlining Act of 1994 
        (Public Law 103-355, 31 U.S.C. 1535 note), may by agreement 
        delegate procurement functions and assign procurement 
        responsibilities 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 2 or more executive agencies may establish 
        joint or combined offices to exercise procurement functions and 
        responsibilities.

Sec. 3103. Acquisition programs

  (a) Congressional Policy.--It is the policy of Congress that the head 
of each executive agency should achieve, on average, 90 percent of the 
cost, performance, and schedule goals established for major acquisition 
programs of the agency.
  (b) Establishment of Goals.--

[[Page 124 STAT. 3744]]

          (1) By head of executive agency.--The head of each executive 
        agency shall approve or define the cost, performance, and 
        schedule goals for major acquisition programs of the agency.
          (2) By chief financial officer.--The chief financial officer 
        of an executive agency shall evaluate the cost goals proposed 
        for each major acquisition program of the agency.

  (c) Identification of Noncompliant Programs.--When it is necessary to 
implement the policy set out in subsection (a), the head of an executive 
agency shall--
          (1) determine whether there is a continuing need for programs 
        that are significantly behind schedule, over budget, or not in 
        compliance with performance or capability requirements; and
          (2) identify suitable actions to be taken, including 
        termination, with respect to those programs.

Sec. 3104. Small business concerns

  It is the policy of Congress that a fair proportion of the total 
purchases and contracts for property and services for the Federal 
Government shall be placed with small business concerns.

Sec. 3105. New contracts and grants and merit-based selection procedures

  (a) Congressional Policy.--It is the policy of Congress that--
          (1) an executive agency should not be required by legislation 
        to award--
                  (A) a new contract to a specific non-Federal 
                Government entity; or
                  (B) a new grant for research, development, test, or 
                evaluation to a non-Federal Government entity; and
          (2) a program, project, or technology identified in 
        legislation be procured or awarded through merit-based selection 
        procedures.

  (b) New Contract and New Grant Described.--For purposes of this 
section--
          (1) 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 prior contract; and
          (2) 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 prior grant.

  (c) Requirements for Awarding New Contract or New Grant.--A provision 
of law may not be construed as requiring a new contract or a new grant 
to be awarded to a specified non-Federal Government entity unless the 
provision of law specifically--
          (1) refers to this section;
          (2) identifies the particular non-Federal Government entity 
        involved; and
          (3) states that the award to that entity is required by the 
        provision of law in contravention of the policy set forth in 
        subsection (a).

  (d) Exception.--This section does not apply to a contract or grant 
that calls on the National Academy of Sciences to investigate, examine, 
or experiment on a subject of science or art of significance to an 
executive agency and to report on those matters to Congress or an agency 
of the Federal Government.

[[Page 124 STAT. 3745]]

Sec. 3106. Erection, repair, or furnishing of public buildings and 
                        improvements not authorized, and certain 
                        contracts not permitted, by this division

  This division does not--
          (1) authorize the erection, repair, or furnishing of a public 
        building or public improvement; or
          (2) permit a contract for the construction or repair of a 
        building, road, sidewalk, sewer, main, or similar item using 
        procedures other than sealed-bid procedures under section 
        3301(b)(1)(A) of this title if the conditions set forth in 
        section 3301(b)(1)(A) of this title apply or the contract is to 
        be performed outside the United States.

                  CHAPTER 33--PLANNING AND SOLICITATION

Sec.
3301.  Full and open competition.
3302.  Requirements for purchase of property and services pursuant to 
           multiple award contracts.
3303.  Exclusion of particular source or restriction of solicitation to 
           small business concerns.
3304.  Use of noncompetitive procedures.
3305.  Simplified procedures for small purchases.
3306.  Planning and solicitation requirements.
3307.  Preference for commercial items.
3308.  Planning for future competition in contracts for major systems.
3309.  Design-build selection procedures.
3310.  Quantities to order.
3311.  Qualification requirement.

Sec. 3301. Full and open competition

  (a) In General.--Except as provided in sections 3303, 3304(a), and 
3305 of this title and except in the case of procurement procedures 
otherwise expressly authorized by statute, an executive agency in 
conducting a procurement for property or services shall--
          (1) obtain full and open competition through the use of 
        competitive procedures in accordance with the requirements of 
        this division and the Federal Acquisition Regulation; and
          (2) use the competitive procedure or combination of 
        competitive procedures that is best suited under the 
        circumstances of the procurement.

  (b) Appropriate Competitive Procedures.--
          (1) Use of sealed bids.--In determining the competitive 
        procedures appropriate under the circumstance, an executive 
        agency shall--
                  (A) solicit sealed bids if--
                        (i) time permits the solicitation, submission, 
                      and evaluation of sealed bids;
                        (ii) the award will be made on the basis of 
                      price and other price-related factors;
                        (iii) it is not necessary to conduct discussions 
                      with the responding sources about their bids; and
                        (iv) there is a reasonable expectation of 
                      receiving more than one sealed bid; or
                  (B) request competitive proposals if sealed bids are 
                not appropriate under subparagraph (A).
          (2) Sealed bid not required.--Paragraph (1)(A) does not 
        require the use of sealed-bid procedures in cases in which 
        section 204(e) of title 23 applies.

[[Page 124 STAT. 3746]]

  (c) Efficient Fulfillment of Government Requirements.--The Federal 
Acquisition Regulation shall ensure that the requirement to obtain full 
and open competition is implemented in a manner that is consistent with 
the need to efficiently fulfill the Federal Government's requirements.

Sec. 3302. Requirements for purchase of property and services pursuant 
                        to multiple award contracts

  (a) Definitions.--In this section:
          (1) Executive agency.-- The term ``executive agency'' has the 
        same meaning given in section 133 of this title.
          (2) Individual purchase.--The term ``individual purchase'' 
        means a task order, delivery order, or other purchase.
          (3) Multiple award contract.--The term ``multiple award 
        contract'' means--
                  (A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 2302(2)(C) 
                of title 10;
                  (B) a multiple award task order contract that is 
                entered into under the authority of sections 2304a to 
                2304d of title 10, or chapter 41 of this title; and
                  (C) any other indefinite delivery, indefinite quantity 
                contract that is entered into by the head of an 
                executive agency with 2 or more sources pursuant to the 
                same solicitation.
          (4) Sole source task or delivery order.--The term ``sole 
        source task or delivery order'' means any order that does not 
        follow the competitive procedures in paragraph (2) or (3) of 
        subsection (c).

  (b) Regulations Required.--The Federal Acquisition Regulation shall 
require enhanced competition in the purchase of property and services by 
all executive agencies pursuant to multiple award contracts.
  (c) Content of Regulations.--
          (1) In general.--The regulations required by subsection (b) 
        shall provide that each individual purchase of property or 
        services in excess of the simplified acquisition threshold that 
        is made under a multiple award contract shall be made on a 
        competitive basis unless a contracting officer--
                  (A) waives the requirement on the basis of a 
                determination that--
                        (i) one of the circumstances described in 
                      paragraphs (1) to (4) of section 4106(c) of this 
                      title or section 2304c(b) of title 10 applies to 
                      the individual purchase; or
                        (ii) a law expressly authorizes or requires that 
                      the purchase be made from a specified source; and
                  (B) justifies the determination in writing.
          (2) Competitive basis procedures.--For purposes of this 
        subsection, an individual purchase of property or services is 
        made on a competitive basis only if it is made pursuant to 
        procedures that--
                  (A) require fair notice of the intent to make that 
                purchase (including a description of the work to be 
                performed and the basis on which the selection will be 
                made) to be provided to all contractors offering the 
                property or services under the multiple award contract; 
                and

[[Page 124 STAT. 3747]]

                  (B) afford all contractors responding to the notice a 
                fair opportunity to make an offer and have that offer 
                fairly considered by the official making the purchase.
          (3) Exception to notice requirement.--
                  (A) In general.--Notwithstanding paragraph (2), and 
                subject to subparagraph (B), notice may be provided to 
                fewer than all contractors offering the property or 
                services under a multiple award contract as described in 
                subsection (a)(3)(A) if notice is provided to as many 
                contractors as practicable.
                  (B) Limitation on exception.--A purchase may not be 
                made pursuant to a notice that is provided to fewer than 
                all contractors under subparagraph (A) unless--
                        (i) offers were received from at least 3 
                      qualified contractors; or
                        (ii) a contracting officer of the executive 
                      agency determines in writing that no additional 
                      qualified contractors were able to be identified 
                      despite reasonable efforts to do so.

  (d) Public Notice Requirements Related to Sole Source Task or Delivery 
Orders.--
          (1) Public notice required.--The Federal Acquisition 
        Regulation shall require the head of each executive agency to--
                  (A) publish on FedBizOpps notice of all sole source 
                task or delivery orders in excess of the simplified 
                acquisition threshold that are placed against multiple 
                award contracts not later than 14 days after the orders 
                are placed, except in the event of extraordinary 
                circumstances or classified orders; and
                  (B) disclose the determination required by subsection 
                (c)(1) related to sole source task or delivery orders in 
                excess of the simplified acquisition threshold placed 
                against multiple award contracts through the same 
                mechanism and to the same extent as the disclosure of 
                documents containing a justification and approval 
                required by section 2304(f)(1) of title 10 and section 
                3304(e)(1) of this title, except in the event of 
                extraordinary circumstances or classified orders.
          (2) Exemption.--This subsection does not require the public 
        availability of information that is exempt from public 
        disclosure under section 552(b) of title 5.

  (e) Applicability.--The regulations required by subsection (b) shall 
apply to all individual purchases of property or services that are made 
under multiple award contracts on or after the effective date of the 
regulations, without regard to whether the multiple award contracts were 
entered into before, on, or after the effective date.

Sec. 3303. Exclusion of particular source or restriction of solicitation 
                        to small business concerns

  (a) Exclusion of Particular Source.--
          (1) Criteria for exclusion.--An executive agency may provide 
        for the procurement of property or services covered by section 
        3301 of this title using competitive procedures but excluding a 
        particular source to establish or maintain an alternative source 
        of supply for that property or service if the agency head 
        determines that to do so would--

[[Page 124 STAT. 3748]]

                  (A) increase or maintain competition and likely result 
                in reduced overall cost for the procurement, or for an 
                anticipated procurement, of the property or services;
                  (B) be in the interest of national defense in having a 
                facility (or a producer, manufacturer, or other 
                supplier) available for furnishing the property or 
                service in case of a national emergency or industrial 
                mobilization;
                  (C) be in the interest of national defense in 
                establishing or maintaining an essential engineering, 
                research, or development capability to be provided by an 
                educational or other nonprofit institution or a 
                Federally funded research and development center;
                  (D) ensure the continuous availability of a reliable 
                source of supply of the property or service;
                  (E) satisfy projected needs for the property or 
                service determined on the basis of a history of high 
                demand for the property or service; or
                  (F) satisfy a critical need for medical, safety, or 
                emergency supplies.
          (2) Determination for class disallowed.--A determination under 
        paragraph (1) may not be made for a class of purchases or 
        contracts.

  (b) Exclusion of Other Than Small Business Concerns.--An executive 
agency may provide for the procurement of property or services covered 
by section 3301 of this title using competitive procedures, but 
excluding other than small business concerns in furtherance of sections 
9 and 15 of the Small Business Act (15 U.S.C. 638, 644).
  (c) Nonapplication of Justification and Approval Requirements.--A 
contract awarded pursuant to the competitive procedures referred to in 
subsections (a) and (b) is not subject to the justification and approval 
required by section 3304(e)(1) of this title.

Sec. 3304. Use of noncompetitive procedures

  (a) When Noncompetitive Procedures May Be Used.--An executive agency 
may use procedures other than competitive procedures only when--
          (1) the property or services needed by the executive agency 
        are available from only one responsible source and no other type 
        of property or services will satisfy the needs of the executive 
        agency;
          (2) the executive agency's need for the property or services 
        is of such an unusual and compelling urgency that the Federal 
        Government would be seriously injured unless the executive 
        agency is permitted to limit the number of sources from which it 
        solicits bids or proposals;
          (3) it is necessary to award the contract to a particular 
        source--
                  (A) to maintain a facility, producer, manufacturer, or 
                other supplier available for furnishing property or 
                services in case of a national emergency or to achieve 
                industrial mobilization;
                  (B) to establish or maintain an essential engineering, 
                research, or development capability to be provided by an 
                educational or other nonprofit institution or a 
                Federally funded research and development center;
                  (C) to procure the services of an expert for use, in 
                any litigation or dispute (including any reasonably 
                foreseeable

[[Page 124 STAT. 3749]]

                litigation or dispute) involving the Federal Government, 
                in any trial, hearing, or proceeding before a court, 
                administrative tribunal, or agency, whether or not the 
                expert is expected to testify; or
                  (D) to procure the services of an expert or neutral 
                for use in any part of an alternative dispute resolution 
                or negotiated rulemaking process, whether or not the 
                expert is expected to testify;
          (4) the terms of an international agreement or treaty between 
        the Federal Government and a foreign government or an 
        international organization, or the written directions of a 
        foreign government reimbursing the executive agency for the cost 
        of the procurement of the property or services for that 
        government, have the effect of requiring the use of procedures 
        other than competitive procedures;
          (5) subject to section 3105 of this title, a statute expressly 
        authorizes or requires that the procurement be made through 
        another executive agency or from a specified source, or the 
        agency's need is for a brand-name commercial item for authorized 
        resale;
          (6) the disclosure of the executive agency's needs would 
        compromise the national security unless the agency is permitted 
        to limit the number of sources from which it solicits bids or 
        proposals; or
          (7) the head of the executive agency (who may not delegate the 
        authority under this paragraph)--
                  (A) determines that it is necessary in the public 
                interest to use procedures other than competitive 
                procedures in the particular procurement concerned; and
                  (B) notifies Congress in writing of that determination 
                not less than 30 days before the award of the contract.

  (b) Property or Services Deemed Available From Only One Source.--For 
the purposes of subsection (a)(1), in the case of--
          (1) a contract for property or services to be awarded on the 
        basis of acceptance of an unsolicited research proposal, the 
        property or services are deemed to be available from only one 
        source if the source has submitted an unsolicited research 
        proposal that demonstrates a unique and innovative concept, the 
        substance of which is not otherwise available to the Federal 
        Government and does not resemble the substance of a pending 
        competitive procurement; or
          (2) a follow-on contract for the continued development or 
        production of a major system or highly specialized equipment, 
        the property may be deemed to be available only from the 
        original source and may be procured through procedures other 
        than competitive procedures when it is likely that award to a 
        source other than the original source would result in--
                  (A) substantial duplication of cost to the Federal 
                Government that is not expected to be recovered through 
                competition; or
                  (B) unacceptable delay in fulfilling the executive 
                agency's needs.

  (c) Property or Services Needed With Unusual and Compelling Urgency.--
          (1) Allowable contract period.--The contract period of a 
        contract described in paragraph (2) that is entered into by an 
        executive agency pursuant to the authority provided under 
        subsection (a)(2)--

[[Page 124 STAT. 3750]]

                  (A) may not exceed the time necessary--
                        (i) to meet the unusual and compelling 
                      requirements of the work to be performed under the 
                      contract; and
                        (ii) for the executive agency to enter into 
                      another contract for the required goods or 
                      services through the use of competitive 
                      procedures; and
                  (B) may not exceed one year unless the head of the 
                executive agency entering into the contract determines 
                that exceptional circumstances apply.
          (2) Applicability of allowable contract period.--This 
        subsection applies to any contract in an amount greater than the 
        simplified acquisition threshold.

  (d) Offer Requests to Potential Sources.--An executive agency using 
procedures other than competitive procedures to procure property or 
services by reason of the application of paragraph (2) or (6) of 
subsection (a) shall request offers from as many potential sources as is 
practicable under the circumstances.
  (e) Justification for Use of Noncompetitive Procedures.--
          (1) Prerequisites for awarding contract.--Except as provided 
        in paragraphs (3) and (4), an executive agency may not award a 
        contract using procedures other than competitive procedures 
        unless--
                  (A) the contracting officer for the contract justifies 
                the use of those procedures in writing and certifies the 
                accuracy and completeness of the justification;
                  (B) the justification is approved, in the case of a 
                contract for an amount--
                        (i) exceeding $500,000 but equal to or less than 
                      $10,000,000, by the advocate for competition for 
                      the procuring activity (without further 
                      delegation) or by an official referred to in 
                      clause (ii) or (iii);
                        (ii) exceeding $10,000,000 but equal to or less 
                      than $50,000,000, by the head of the procuring 
                      activity or by a delegate who, if a member of the 
                      armed forces, is a general or flag officer or, if 
                      a civilian, is serving in a position in which the 
                      individual is entitled to receive the daily 
                      equivalent of the maximum annual rate of basic pay 
                      payable for level IV of the Executive Schedule (or 
                      in a comparable or higher position under another 
                      schedule); or
                        (iii) exceeding $50,000,000, by the senior 
                      procurement executive of the agency designated 
                      pursuant to section 1702(c) of this title (without 
                      further delegation); and
                  (C) any required notice has been published with 
                respect to the contract pursuant to section 1708 of this 
                title and the executive agency has considered all bids 
                or proposals received in response to that notice.
          (2) Elements of justification.--The justification required by 
        paragraph (1)(A) shall include--
                  (A) a description of the agency's needs;
                  (B) an identification of the statutory exception from 
                the requirement to use competitive procedures and a 
                demonstration, based on the proposed contractor's 
                qualifications or the nature of the procurement, of the 
                reasons for using that exception;
                  (C) a determination that the anticipated cost will be 
                fair and reasonable;

[[Page 124 STAT. 3751]]

                  (D) a description of the market survey conducted or a 
                statement of the reasons a market survey was not 
                conducted;
                  (E) a listing of any sources that expressed in writing 
                an interest in the procurement; and
                  (F) a statement of any actions the agency may take to 
                remove or overcome a barrier to competition before a 
                subsequent procurement for those needs.
          (3) Justification allowed after contract awarded.--In the case 
        of a procurement permitted by subsection (a)(2), the 
        justification and approval required by paragraph (1) may be made 
        after the contract is awarded.
          (4) Justification not required.--The justification and 
        approval required by paragraph (1) are not required if--
                  (A) a statute expressly requires that the procurement 
                be made from a specified source;
                  (B) the agency's need is for a brand-name commercial 
                item for authorized resale;
                  (C) the procurement is permitted by subsection (a)(7); 
                or
                  (D) the procurement is conducted under chapter 85 of 
                this title or section 8(a) of the Small Business Act (15 
                U.S.C. 637(a)).
          (5) Restrictions on executive agencies.--
                  (A) Contracts and procurement of property or 
                services.--In no case may an executive agency--
                        (i) enter into a contract for property or 
                      services using procedures other than competitive 
                      procedures on the basis of the lack of advance 
                      planning or concerns related to the amount 
                      available to the agency for procurement functions; 
                      or
                        (ii) procure property or services from another 
                      executive agency unless the other executive agency 
                      complies fully with the requirements of this 
                      division in its procurement of the property or 
                      services.
                  (B) Additional restriction.--The restriction set out 
                in subparagraph (A)(ii) is in addition to any other 
                restriction provided by law.

  (f) Public Availability of Justification and Approval Required for 
Using Noncompetitive Procedures.--
          (1) Time requirement.--
                  (A) Within 14 days after contract award.--Except as 
                provided in subparagraph (B), in the case of a 
                procurement permitted by subsection (a), the head of an 
                executive agency shall make publicly available, within 
                14 days after the award of the contract, the documents 
                containing the justification and approval required by 
                subsection (e)(1) with respect to the procurement.
                  (B) Within 30 days after contract award.--In the case 
                of a procurement permitted by subsection (a)(2), 
                subparagraph (A) shall be applied by substituting ``30 
                days'' for ``14 days''.
          (2) Availability on websites.--The documents referred to in 
        subparagraph (A) of paragraph (1) shall be made available on the 
        website of the agency and through a Government-wide website 
        selected by the Administrator.
          (3) Exception to availability and approval requirement.--This 
        subsection does not require the public availability

[[Page 124 STAT. 3752]]

        of information that is exempt from public disclosure under 
        section 552(b) of title 5.

Sec. 3305. Simplified procedures for small purchases

  (a) Authorization.--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 purchases of property and services for amounts--
          (1) not greater than the simplified acquisition threshold; and
          (2) greater than the simplified acquisition threshold but not 
        greater than $5,000,000 for which the contracting officer 
        reasonably expects, based on the nature of the property or 
        services sought and on market research, that offers will include 
        only commercial items.

  (b) Leasehold Interests in Real Property.--The Administrator of 
General Services shall prescribe regulations that provide special 
simplified procedures for acquisitions of leasehold interests in real 
property at rental rates that do not exceed the simplified acquisition 
threshold. The rental rate under a multiyear lease does 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.
  (c) Prohibition on Dividing Contracts.--A proposed purchase or 
contract for an amount above the simplified acquisition threshold may 
not be divided into several purchases or contracts for lesser amounts to 
use the simplified procedures required by subsection (a).
  (d) Promotion of Competition.--In using the simplified procedures, an 
executive agency shall promote competition to the maximum extent 
practicable.
  (e) Compliance With Special Requirements of Federal Acquisition 
Regulation.--An executive agency shall comply with the Federal 
Acquisition Regulation provisions referred to in section 1901(e) of this 
title.

Sec. 3306. Planning and solicitation requirements

  (a) Planning and Specifications.--
          (1) Preparing for procurement.--In preparing for the 
        procurement of property or services, an executive agency shall--
                  (A) specify its needs and solicit bids or proposals in 
                a manner designed to achieve full and open competition 
                for the procurement;
                  (B) use advance procurement planning and market 
                research; and
                  (C) develop specifications in the manner necessary to 
                obtain full and open competition with due regard to the 
                nature of the property or services to be acquired.
          (2) Requirements of specifications.--Each solicitation under 
        this division shall include specifications that--
                  (A) consistent with this division, permit full and 
                open competition; and
                  (B) include restrictive provisions or conditions only 
                to the extent necessary to satisfy the needs of the 
                executive agency or as authorized by law.
          (3) Types of specifications.--For the purposes of paragraphs 
        (1) and (2), the type of specification included in a 
        solicitation shall depend on the nature of the needs of the 
        executive

[[Page 124 STAT. 3753]]

        agency and the market available to satisfy those needs. Subject 
        to those needs, specifications may be stated in terms of--
                  (A) function, so that a variety of products or 
                services may qualify;
                  (B) performance, including specifications of the range 
                of acceptable characteristics or of the minimum 
                acceptable standards; or
                  (C) design requirements.

  (b) Contents of Solicitation.--In addition to the specifications 
described in subsection (a), each solicitation for sealed bids or 
competitive proposals (other than for a procurement for commercial items 
using special simplified procedures or a purchase for an amount not 
greater than the simplified acquisition threshold) shall at a minimum 
include--
          (1) a statement of--
                  (A) all significant factors and significant subfactors 
                that 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
                  (B) the relative importance assigned to each of those 
                factors and subfactors; and
          (2)(A) in the case of sealed bids--
                  (i) a statement that sealed bids will be evaluated 
                without discussions with the bidders; and
                  (ii) the time and place for the opening of the sealed 
                bids; or
          (B) in the case of competitive proposals--
                  (i) either a statement that the proposals are intended 
                to be evaluated with, and the award made after, 
                discussions with the offerors, or a statement that the 
                proposals are intended to be evaluated, and the award 
                made, without discussions with the offerors (other than 
                discussions conducted for the purpose of minor 
                clarification) unless discussions are determined to be 
                necessary; and
                  (ii) the time and place for submission of proposals.

  (c) Evaluation Factors.--
          (1) In general.--In prescribing the evaluation factors to be 
        included in each solicitation for competitive proposals, an 
        executive agency shall--
                  (A) establish clearly 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) include cost or price to the Federal Government as 
                an evaluation factor that must be considered in the 
                evaluation of proposals; and
                  (C) disclose to offerors whether all evaluation 
                factors other than cost or price, when combined, are--
                        (i) significantly more important than cost or 
                      price;
                        (ii) approximately equal in importance to cost 
                      or price; or
                        (iii) significantly less important than cost or 
                      price.
          (2) Restriction on implementing regulations.--Regulations 
        implementing paragraph (1)(C) may not define the terms

[[Page 124 STAT. 3754]]

        ``significantly more important'' and ``significantly less 
        important'' as specific numeric weights that would be applied 
        uniformly to all solicitations or a class of solicitations.

  (d) Additional Information in Solicitation.--This section does not 
prohibit 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.

  (e) Limitation on Evaluation of Purchase Options.--An executive 
agency, in issuing a solicitation for a contract to be awarded using 
sealed bid procedures, may not include in the 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.
  (f) Authorization of Telecommuting for Federal Contractors.--
          (1) Definition.--In this subsection, the term ``executive 
        agency'' has the meaning given that term in section 133 of this 
        title.
          (2) Federal acquisition regulation to allow telecommuting.--
        The Federal Acquisition Regulation issued in accordance with 
        sections 1121(b) and 1303(a)(1) of this title shall permit 
        telecommuting by employees of Federal Government contractors in 
        the performance of contracts entered into with executive 
        agencies.
          (3) Scope of allowance.--The Federal Acquisition Regulation at 
        a minimum shall provide that a solicitation for the acquisition 
        of property or services may not set forth any requirement or 
        evaluation criteria that would--
                  (A) render an offeror ineligible to enter into a 
                contract on the basis of the inclusion of a plan of the 
                offeror to allow 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 
                telecommuting is allowed and documents in writing the 
                basis for the determination; or
                  (B) reduce the scoring of an offer on the basis of the 
                inclusion in the offer of a plan of the offeror to allow 
                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 allowed and documents in writing the 
                basis for the determination.

Sec. 3307. Preference for commercial items

  (a) Relationship of Provisions of Law to Procurement of Commercial 
Items.--
          (1) This division.--Unless otherwise specifically provided, 
        all other provisions in this division also apply to the 
        procurement of commercial items.
          (2) Laws listed in federal acquisition regulation.--A contract 
        for the procurement of a commercial item entered into by the 
        head of an executive agency is not subject to

[[Page 124 STAT. 3755]]

        a law properly listed in the Federal Acquisition Regulation 
        pursuant to section 1906 of this title.

  (b) Preference.--The head of each executive agency shall ensure that, 
to the maximum extent practicable--
          (1) requirements of the executive agency with respect to a 
        procurement of supplies or services are stated in terms of--
                  (A) functions to be performed;
                  (B) performance required; or
                  (C) essential physical characteristics;
          (2) those 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, nondevelopmental 
        items other than commercial items may be procured to fulfill 
        those 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 those requirements.

  (c) 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 that prime contractors and subcontractors at all 
        levels under contracts of the executive agency incorporate 
        commercial items or nondevelopmental items other than commercial 
        items as components of items supplied to the executive agency;
          (3) modify requirements in appropriate cases to ensure that 
        the requirements can be met by commercial items or, to the 
        extent that commercial items suitable to meet the executive 
        agency's needs are not available, nondevelopmental items other 
        than commercial items;
          (4) state specifications in terms that enable and encourage 
        bidders and offerors to supply commercial items or, to the 
        extent that commercial items suitable to meet the executive 
        agency's needs are not available, nondevelopmental items other 
        than commercial items in response to the executive agency 
        solicitations;
          (5) revise the executive agency's procurement policies, 
        practices, and procedures not required by law to reduce any 
        impediments in those policies, practices, and procedures to the 
        acquisition of commercial items; and
          (6) require training of appropriate personnel in the 
        acquisition of commercial items.

  (d) Market Research.--
          (1) When to be used.--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) Use of results.--The head of an executive agency shall use 
        the results of market research to determine whether commercial 
        items or, to the extent that commercial items suitable to meet 
        the executive agency's needs are not available,

[[Page 124 STAT. 3756]]

        nondevelopmental items other than commercial items are available 
        that--
                  (A) meet the executive agency's requirements;
                  (B) could be modified to meet the executive agency's 
                requirements; or
                  (C) could meet the executive agency's requirements if 
                those requirements were modified to a reasonable extent.
          (3) Only minimum information required to be submitted.--In 
        conducting market research, the head of an executive agency 
        should not require potential sources to submit more than the 
        minimum information that is necessary to make the determinations 
        required in paragraph (2).

  (e) Regulations.--
          (1) In general.--The Federal Acquisition Regulation shall 
        provide regulations to implement this section, sections 102, 
        103, 105, and 110 of this title, and chapter 140 of title 10.
          (2) Contract clauses.--
                  (A) Definition.--In this paragraph, the term 
                ``subcontract'' includes a transfer of commercial items 
                between divisions, subsidiaries, or affiliates of a 
                contractor or subcontractor.
                  (B) List of clauses to be included.--The regulations 
                prescribed under paragraph (1) shall contain a list of 
                contract clauses to be included in contracts for the 
                acquisition of commercial end items. To the maximum 
                extent practicable, the list shall include only those 
                contract clauses that are--
                        (i) required to implement provisions of law or 
                      executive orders applicable to acquisitions of 
                      commercial items or commercial components; or
                        (ii) determined to be consistent with standard 
                      commercial practice.
                  (C) Requirements of prime contractor.--The regulations 
                shall provide that the Federal Government shall not 
                require a prime contractor to apply to any of its 
                divisions, subsidiaries, affiliates, subcontractors, or 
                suppliers that are furnishing commercial items any 
                contract clause except those that are--
                        (i) required to implement provisions of law or 
                      executive orders applicable to subcontractors 
                      furnishing commercial items or commercial 
                      components; or
                        (ii) determined to be consistent with standard 
                      commercial practice.
                  (D) Clauses that may be used in a contract.--To the 
                maximum extent practicable, only the contract clauses 
                listed pursuant to subparagraph (B) may be used in a 
                contract, and only the contract clauses referred to in 
                subparagraph (C) may be required to be used in a 
                subcontract, for the acquisition of commercial items or 
                commercial components by or for an executive agency.
                  (E) Waiver of contract clauses.--The Federal 
                Acquisition Regulation shall provide standards and 
                procedures for waiving the use of contract clauses 
                required pursuant to subparagraph (B), other than those 
                required by law, including standards for determining the 
                cases in which a waiver is appropriate.
          (3) Market acceptance.--

[[Page 124 STAT. 3757]]

                  (A) Requirement of offerors.--The Federal Acquisition 
                Regulation shall provide that under appropriate 
                conditions the head of an executive agency may require 
                offerors to demonstrate that the items offered--
                        (i) have achieved commercial market acceptance 
                      or been satisfactorily supplied to an executive 
                      agency under current or recent contracts for the 
                      same or similar requirements; and
                        (ii) otherwise meet the item description, 
                      specifications, or other criteria prescribed in 
                      the public notice and solicitation relating to the 
                      contract.
                  (B) Regulation to provide guidance on criteria.--The 
                Federal Acquisition Regulation shall provide guidance to 
                ensure that the criteria for determining commercial 
                market acceptance include the consideration of--
                        (i) the minimum needs of the executive agency 
                      concerned; and
                        (ii) the entire relevant commercial market, 
                      including small businesses.
          (4) Provisions relating to types of contracts.--
                  (A) Types of contracts that may be used.--The Federal 
                Acquisition Regulation shall include, for acquisitions 
                of commercial items--
                        (i) a requirement that firm, fixed price 
                      contracts or fixed price with economic price 
                      adjustment contracts be used to the maximum extent 
                      practicable;
                        (ii) a prohibition on use of cost type 
                      contracts; and
                        (iii) subject to subparagraph (B), authority for 
                      use of a time-and-materials or labor-hour contract 
                      for the procurement of commercial services that 
                      are commonly sold to the general public through 
                      those contracts and are purchased by the procuring 
                      agency on a competitive basis.
                  (B) When time-and-materials or labor-hour contract may 
                be used.--A time-and-materials or labor-hour contract 
                may be used pursuant to the authority referred to in 
                subparagraph (A)(iii)--
                        (i) only for a procurement of commercial 
                      services in a category of commercial services 
                      described in subparagraph (C); and
                        (ii) only if the contracting officer for the 
                      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 a subsequent change 
                                in the ceiling price only on a 
                                determination, documented in the 
                                contract file, that it is in the best 
                                interest of the procuring agency to 
                                change the ceiling price.
                  (C) Categories of commercial services.--The categories 
                of commercial services referred to in subparagraph (B) 
                are as follows:
                        (i) Commercial services procured for support of 
                      a commercial item, as described in section 103(5) 
                      of this title.

[[Page 124 STAT. 3758]]

                        (ii) Any other category of commercial services 
                      that the Administrator for Federal Procurement 
                      Policy designates in the Federal Acquisition 
                      Regulation for the purposes of this subparagraph 
                      on the basis that--
                                  (I) the commercial services in the 
                                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 the category.
          (5) Contract quality requirements.--Regulations prescribed 
        under paragraph (1) shall include provisions that--
                  (A) allow, to the maximum extent practicable, a 
                contractor under a commercial items acquisition to use 
                the existing quality assurance system of the contractor 
                as a substitute for compliance with an otherwise 
                applicable requirement for the Federal Government to 
                inspect or test the commercial items before the 
                contractor's tender of those items for acceptance by the 
                Federal Government;
                  (B) 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 those warranties for the repair 
                and replacement of commercial items; and
                  (C) set forth guidance regarding the use of past 
                performance of commercial items and sources as a factor 
                in contract award decisions.

Sec. 3308. Planning for future competition in contracts for major 
                        systems

  (a) Development Contract.--
          (1) Determining whether proposals are necessary.--In preparing 
        a solicitation for the award of a development contract for a 
        major system, the head of an agency shall consider requiring in 
        the solicitation that an offeror include in its offer proposals 
        described in paragraph (2). In determining whether to require 
        the proposals, the head of the agency shall consider the 
        purposes for which the system is being procured and the 
        technology necessary to meet the system's required capabilities. 
        If the proposals are required, the head of the agency shall 
        consider them in evaluating the offeror's price.
          (2) Contents of proposals.--The proposals that the head of an 
        agency is to consider requiring in a solicitation for the award 
        of a development contract are the following:
                  (A) Proposals to incorporate in the design of the 
                major system items that are currently available within 
                the supply system of the Federal agency responsible for 
                the major system, available elsewhere in the national 
                supply system, or commercially available from more than 
                one source.
                  (B) With respect to items that are likely to be 
                required in substantial quantities during the system's 
                service life, proposals to incorporate in the design of 
                the major system items that the Federal Government will 
                be able to acquire competitively in the future.

  (b) Production Contract.--

[[Page 124 STAT. 3759]]

          (1) Determining whether proposals are necessary.--In preparing 
        a solicitation for the award of a production contract for a 
        major system, the head of an agency shall consider requiring in 
        the solicitation that an offeror include in its offer proposals 
        described in paragraph (2). In determining whether to require 
        the proposals, the head of the agency shall consider the 
        purposes for which the system is being procured and the 
        technology necessary to meet the system's required capabilities. 
        If the proposals are required, the head of the agency shall 
        consider them in evaluating the offeror's price.
          (2) Content of proposals.--The proposals that the head of an 
        agency is to consider requiring in a solicitation for the award 
        of a production contract are proposals identifying opportunities 
        to ensure that the Federal Government will be able to obtain on 
        a competitive basis items procured in connection with the system 
        that are likely to be reprocured in substantial quantities 
        during the service life of the system. Proposals submitted in 
        response to this requirement may include the following:
                  (A) Proposals to provide to the Federal Government the 
                right to use technical data to be provided under the 
                contract for competitive reprocurement of the item, 
                together with the cost to the Federal Government of 
                acquiring the data and the right to use the data.
                  (B) Proposals for the qualification or development of 
                multiple sources of supply for the item.

  (c) Consideration of Factors as Objectives in Negotiations.--If the 
head of an agency is making a noncompetitive award of a development 
contract or a production contract for a major system, the factors 
specified in subsections (a) and (b) to be considered in evaluating an 
offer for a contract may be considered as objectives in negotiating the 
contract to be awarded.

Sec. 3309. Design-build selection procedures

  (a) Authorization.--Unless the traditional acquisition approach of 
design-bid-build established under sections 1101 to 1104 of title 40 or 
another acquisition procedure authorized by law is used, the head of an 
executive agency shall use the two-phase selection procedures authorized 
in this section for entering into a contract for the design and 
construction of a public building, facility, or work when a 
determination is made under subsection (b) that the procedures are 
appropriate for use.
  (b) Criteria for Use.--A contracting officer shall make a 
determination whether two-phase selection procedures are appropriate for 
use for entering into a contract for the design and construction of a 
public building, facility, or work when--
          (1) the contracting officer anticipates that 3 or more offers 
        will be received for the contract;
          (2) design work must be performed before an offeror can 
        develop a price or cost proposal for the contract;
          (3) the offeror will incur a substantial amount of expense in 
        preparing the offer; and
          (4) the contracting officer has considered information such as 
        the following:
                  (A) The extent to which the project requirements have 
                been adequately defined.
                  (B) The time constraints for delivery of the project.
                  (C) The capability and experience of potential 
                contractors.

[[Page 124 STAT. 3760]]

                  (D) The suitability of the project for use of the two-
                phase selection procedures.
                  (E) The capability of the agency to manage the two-
                phase selection process.
                  (F) Other criteria established by the agency.

  (c) Procedures Described.--Two-phase selection procedures consist of 
the following:
          (1) Development of scope of work statement.--The agency 
        develops, either in-house or by contract, a scope of work 
        statement for inclusion in the solicitation that defines the 
        project and provides prospective offerors with sufficient 
        information regarding the Federal Government's requirements 
        (which may include criteria and preliminary design, budget 
        parameters, and schedule or delivery requirements) to enable the 
        offerors to submit proposals that meet the Federal Government's 
        needs. If the agency contracts for development of the scope of 
        work statement, the agency shall contract for architectural and 
        engineering services as defined by and in accordance with 
        sections 1101 to 1104 of title 40.
          (2) Solicitation of phase-one proposals.--The contracting 
        officer solicits phase-one proposals that--
                  (A) include information on the offeror's--
                        (i) technical approach; and
                        (ii) technical qualifications; and
                  (B) do not include--
                        (i) detailed design information; or
                        (ii) cost or price information.
          (3) Evaluation factors.--The evaluation factors to be used in 
        evaluating phase-one proposals are stated in the solicitation 
        and include specialized experience and technical competence, 
        capability to perform, past performance of the offeror's team 
        (including the architect-engineer and construction members of 
        the team), and other appropriate factors, except that cost-
        related or price-related evaluation factors are not permitted. 
        Each solicitation establishes the relative importance assigned 
        to the evaluation factors and subfactors that must be considered 
        in the evaluation of phase-one proposals. The agency evaluates 
        phase-one proposals on the basis of the phase-one evaluation 
        factors set forth in the solicitation.
          (4) Selection by contracting officer.--
                  (A) Number of offerors selected and what is to be 
                evaluated.--The contracting officer selects as the most 
                highly qualified the number of offerors specified in the 
                solicitation to provide the property or services under 
                the contract and requests the selected offerors to 
                submit phase-two competitive proposals that include 
                technical proposals and cost or price information. Each 
                solicitation establishes with respect to phase two--
                        (i) the technical submission for the proposal, 
                      including design concepts or proposed solutions to 
                      requirements addressed within the scope of work, 
                      or both; and
                        (ii) the evaluation factors and subfactors, 
                      including cost or price, that must be considered 
                      in the evaluations of proposals in accordance with 
                      subsections (b) to (d) of section 3306 of this 
                      title.

[[Page 124 STAT. 3761]]

                  (B) Separate evaluations.--The contracting officer 
                separately evaluates the submissions described in 
                clauses (i) and (ii) of subparagraph (A).
          (5) Awarding of contract.--The agency awards the contract in 
        accordance with chapter 37 of this title.

  (d) Solicitation To State Number of Offerors To Be Selected for Phase-
Two Requests for Competitive Proposals.--A solicitation issued pursuant 
to the procedures described in subsection (c) shall state the maximum 
number of offerors that are to be selected to submit competitive 
proposals pursuant to subsection (c)(4). The maximum number specified in 
the solicitation shall not exceed 5 unless the agency determines with 
respect to an individual solicitation that a specified number greater 
than 5 is in the Federal Government's interest and is consistent with 
the purposes and objectives of the two-phase selection process.
  (e) Requirement for Guidance and Regulations.--The Federal Acquisition 
Regulation shall include guidance--
          (1) regarding the factors that may be considered in 
        determining whether the two-phase contracting procedures 
        authorized by subsection (a) are appropriate for use in 
        individual contracting situations;
          (2) regarding the factors that may be used in selecting 
        contractors; and
          (3) providing for a uniform approach to be used Government-
        wide.

Sec. 3310. Quantities to order

  (a) Factors Affecting Quantity To Order.--Each executive agency shall 
procure supplies in a quantity that--
          (1) will result in the total cost and unit cost most 
        advantageous to the Federal Government, where practicable; and
          (2) does not exceed the quantity reasonably expected to be 
        required by the agency.

  (b) Offeror's Opinion of Quantity.--Each solicitation for a contract 
for supplies shall, if practicable, include a provision inviting each 
offeror responding to the solicitation to state an opinion on whether 
the quantity of supplies proposed to be procured is economically 
advantageous to the Federal Government and, if applicable, to recommend 
a quantity that would be more economically advantageous to the Federal 
Government. Each recommendation shall include a quotation of the total 
price and the unit price for supplies procured in each recommended 
quantity.

Sec. 3311. Qualification requirement

  (a) Definition.--In this section, the term ``qualification 
requirement'' means a requirement for testing or other quality assurance 
demonstration that must be completed by an offeror before award of a 
contract.
  (b) Actions Before Enforcing Qualification Requirement.--Except as 
provided in subsection (c), the head of an agency, before enforcing any 
qualification requirement, shall--
          (1) prepare a written justification stating the necessity for 
        establishing the qualification requirement and specify why the 
        qualification requirement must be demonstrated before contract 
        award;
          (2) specify in writing and make available to a potential 
        offeror on request all requirements that a prospective offeror, 
        or its

[[Page 124 STAT. 3762]]

        product, must satisfy to become qualified, with those 
        requirements to be limited to those least restrictive to meet 
        the purposes necessitating the establishment of the 
        qualification requirement;
          (3) specify an estimate of the cost of testing and evaluation 
        likely to be incurred by a potential offeror to become 
        qualified;
          (4) ensure that a potential offeror is provided, on request, a 
        prompt opportunity to demonstrate at its own expense (except as 
        provided in subsection (d)) its ability to meet the standards 
        specified for qualification using--
                  (A) qualified personnel and facilities--
                        (i) of the agency concerned;
                        (ii) of another agency obtained through 
                      interagency agreement; or
                        (iii) under contract; or
                  (B) other methods approved by the agency (including 
                use of approved testing and evaluation services not 
                provided under contract to the agency);
          (5) if testing and evaluation services are provided under 
        contract to the agency for the purposes of paragraph (4), 
        provide to the extent possible that those services be provided 
        by a contractor that--
                  (A) is not expected to benefit from an absence of 
                additional qualified sources; and
                  (B) is required in the contract to adhere to any 
                restriction on technical data asserted by the potential 
                offeror seeking qualification; and
          (6) ensure that a potential offeror seeking qualification is 
        promptly informed whether qualification is attained and, if not 
        attained, is promptly furnished specific information about why 
        qualification was not attained.

  (c) Applicability, Waiver Authority, and Referral of Offers.--
          (1) Applicability.--Subsection (b) does not apply to a 
        qualification requirement established by statute prior to 
        October 30, 1984.
          (2) Waiver authority.--
                  (A) Submission of determination of unreasonableness.--
                Except as provided in subparagraph (C), if it is 
                unreasonable to specify the standards for qualification 
                that a prospective offeror or its product must satisfy, 
                a determination to that effect shall be submitted to the 
                advocate for competition of the procuring activity 
                responsible for the purchase of the item subject to the 
                qualification requirement.
                  (B) Authority to grant waiver.--After considering any 
                comments of the advocate for competition reviewing the 
                determination, the head of the procuring activity may 
                waive the requirements of paragraphs (2) to (5) of 
                subsection (b) for up to 2 years with respect to the 
                item subject to the qualification requirement.
                  (C) Nonapplicability to qualified products list.--
                Waiver authority under this paragraph does not apply 
                with respect to a qualified products list.
          (3) Submission and consideration of offer not to be denied.--A 
        potential offeror may not be denied the opportunity to submit 
        and have considered an offer for a contract solely because the 
        potential offeror has not been identified as meeting

[[Page 124 STAT. 3763]]

        a qualification requirement if the potential offeror can 
        demonstrate to the satisfaction of the contracting officer that 
        the potential offeror or its product meets the standards 
        established for qualification or can meet those standards before 
        the date specified for award of the contract.
          (4) Referral to small business administration not required.--
        This subsection does not require the referral of an offer to the 
        Small Business Administration pursuant to section 8(b)(7) of the 
        Small Business Act (15 U.S.C. 637(b)(7)) if the basis for the 
        referral is a challenge by the offeror to either the validity of 
        the qualification requirement or the offeror's compliance with 
        that requirement.
          (5) Delay of procurement not required.--The head of an agency 
        need not delay a proposed procurement to comply with subsection 
        (b) or to provide a potential offeror with an opportunity to 
        demonstrate its ability to meet the standards specified for 
        qualification.

  (d) Fewer Than 2 Actual Manufacturers.--
          (1) Solicitation and testing of additional sources or 
        products.--If the number of qualified sources or qualified 
        products available to compete actively for an anticipated future 
        requirement is fewer than 2 actual manufacturers or the products 
        of 2 actual manufacturers, respectively, the head of the agency 
        concerned shall--
                  (A) publish notice periodically soliciting additional 
                sources or products to seek qualification, unless the 
                contracting officer determines that doing so would 
                compromise national security; and
                  (B) subject to paragraph (2), bear the cost of 
                conducting the specified testing and evaluation 
                (excluding the cost associated with producing the item 
                or establishing the production, quality control, or 
                other system to be tested and evaluated) for a small 
                business concern or a product manufactured by a small 
                business concern that has met the standards specified 
                for qualification and that could reasonably be expected 
                to compete for a contract for that requirement.
          (2) When agency may bear cost.--The head of the agency 
        concerned may bear the cost under paragraph (1)(B) only if the 
        head of the agency determines that the additional qualified 
        sources or products are likely to result in cost savings from 
        increased competition for future requirements sufficient to 
        offset (within a reasonable period of time considering the 
        duration and dollar value of anticipated future requirements) 
        the cost incurred by the agency.
          (3) Certification required.--The head of the agency shall 
        require a prospective contractor requesting the Federal 
        Government to bear testing and evaluation costs under paragraph 
        (1)(B) to certify its status as a small business concern under 
        section 3 of the Small Business Act (15 U.S.C. 632).

  (e) Examination and Revalidation of Qualification Requirement.--Within 
7 years after the establishment of a qualification requirement, the need 
for the requirement shall be examined and the standards of the 
requirement revalidated in accordance with the requirements of 
subsection (b). This subsection does not apply in the case of a 
qualification requirement for which a waiver is in effect under 
subsection (c)(2).

[[Page 124 STAT. 3764]]

  (f) When Enforcement of Qualification Requirement Not Allowed.--Except 
in an emergency as determined by the head of the agency, after the head 
of the agency determines not to enforce a qualification requirement for 
a solicitation, the agency may not enforce the requirement unless the 
agency complies with the requirements of subsection (b).

                CHAPTER 35--TRUTHFUL COST OR PRICING DATA

Sec.
3501.  General.
3502.  Required cost or pricing data and certification.
3503.  Exceptions.
3504.  Cost or pricing data on below-threshold contracts.
3505.  Submission of other information.
3506.  Price reductions for defective cost or pricing data.
3507.  Interest and penalties for certain overpayments.
3508.  Right to examine contractor records.
3509.  Notification of violations of Federal criminal law or 
           overpayments.

Sec. 3501. General

  (a) Definitions.--In this chapter:
          (1) Commercial item.--The term ``commercial item'' has the 
        meaning provided the term by section 103 of this title.
          (2) 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 section 3506(a)(2) of this title, 
        another date agreed upon between the parties, a prudent buyer or 
        seller would reasonably expect to affect price negotiations 
        significantly. The term does not include information that is 
        judgmental, but does include factual information from which a 
        judgment was derived.
          (3) Subcontract.--The term ``subcontract'' includes a transfer 
        of commercial items between divisions, subsidiaries, or 
        affiliates of a contractor or a subcontractor.

  (b) Regulations.--
          (1) Minimizing abuse of commercial services item authority.--
        The Federal Acquisition Regulation shall ensure that services 
        that are not offered and sold competitively in substantial 
        quantities in the commercial marketplace, but are of a type 
        offered and sold competitively in substantial quantities in the 
        commercial marketplace, may be treated as commercial items for 
        purposes of this chapter only if the contracting officer 
        determines in writing that the offeror has submitted sufficient 
        information to evaluate, through price analysis, the 
        reasonableness of the price for the services.
          (2) Information to submit.--To the extent necessary to make a 
        determination under paragraph (1), the contracting officer may 
        request the offeror to submit--
                  (A) prices paid for the same or similar commercial 
                items under comparable terms and conditions by both 
                government and commercial customers; and
                  (B) if the contracting officer determines that the 
                information described in subparagraph (A) is not 
                sufficient to determine the reasonableness of price, 
                other relevant information regarding the basis for price 
                or cost, including information on labor costs, material 
                costs, and overhead rates.

[[Page 124 STAT. 3765]]

Sec. 3502. Required cost or pricing data and certification

  (a) When Required.--The head of an executive agency shall require 
offerors, contractors, and subcontractors to make cost or pricing data 
available as follows:
          (1) Offeror for prime contract.--An offeror for a prime 
        contract under this division to be entered into using procedures 
        other than sealed-bid procedures shall be required to submit 
        cost or pricing data before the award of a contract if--
                  (A) in the case of a prime contract entered into after 
                October 13, 1994, the price of the contract to the 
                Federal Government is expected to exceed $500,000; and
                  (B) in the case of a prime contract entered into on or 
                before October 13, 1994, the price of the contract to 
                the Federal Government is expected to exceed $100,000.
          (2) Contractor.--The contractor for a prime contract under 
        this division shall be required to submit cost or pricing data 
        before the pricing of a change or modification to the contract 
        if--
                  (A) in the case of a change or modification made to a 
                prime contract referred to in paragraph (1)(A), the 
                price adjustment is expected to exceed $500,000;
                  (B) in the case of a change or modification made to a 
                prime contract that was entered into on or before 
                October 13, 1994, and that has been modified pursuant to 
                subsection (f), the price adjustment is expected to 
                exceed $500,000; and
                  (C) in the case of a change or modification not 
                covered by subparagraph (A) or (B), the price adjustment 
                is expected to exceed $100,000.
          (3) Offeror for subcontract.--An offeror for a subcontract (at 
        any tier) of a contract under this division 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 
        chapter and--
                  (A) in the case of a subcontract under a prime 
                contract referred to in paragraph (1)(A), the price of 
                the subcontract is expected to exceed $500,000;
                  (B) in the case of a subcontract entered into under a 
                prime contract that was entered into on or before 
                October 13, 1994, and that has been modified pursuant to 
                subsection (f), the price of the subcontract is expected 
                to exceed $500,000; and
                  (C) in the case of a subcontract not covered by 
                subparagraph (A) or (B), the price of the subcontract is 
                expected to exceed $100,000.
          (4) Subcontractor.--The subcontractor for a subcontract 
        covered by paragraph (3) shall be required to submit cost or 
        pricing data before the pricing of a change or modification to 
        the subcontract if--
                  (A) in the case of a change or modification to a 
                subcontract referred to in paragraph (3)(A) or (B), the 
                price adjustment is expected to exceed $500,000; and
                  (B) in the case of a change or modification to a 
                subcontract referred to in paragraph (3)(C), the price 
                adjustment is expected to exceed $100,000.

[[Page 124 STAT. 3766]]

  (b) Certification.--A person required, as an offeror, contractor, or 
subcontractor, to submit cost or pricing data under subsection (a) (or 
required by the head of the procuring activity concerned to submit the 
data under section 3504 of this title) 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.
  (c) To Whom Submitted.--Cost or pricing data required to be submitted 
under subsection (a) (or under section 3504 of this title), and a 
certification required to be submitted under subsection (b), shall be 
submitted--
          (1) 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 a designated representative of the contracting 
        officer); or
          (2) in the case of a submission by a subcontractor (or an 
        offeror for a subcontract), to the prime contractor.

  (d) Application of Chapter.--Except as provided under section 3503 of 
this title, this chapter applies to contracts entered into by the head 
of an executive agency on behalf of a foreign government.
  (e) Subcontracts Not Affected by Waiver.--A waiver of requirements for 
submission of certified cost or pricing data that is granted under 
section 3503(a)(3) of this title in the case of a contract or 
subcontract does not waive the requirement under subsection (a)(3) of 
this section for submission of cost or pricing data in the case of 
subcontracts under that contract or subcontract unless the head of the 
procuring activity granting the waiver determines that the requirement 
under subsection (a)(3) of this section should be waived in the case of 
those subcontracts and justifies in writing the reason for the 
determination.
  (f) Modifications to Prior Contracts.--On the request of a contractor 
that was required to submit cost or pricing data under subsection (a) in 
connection with a prime contract entered into on or before October 13, 
1994, the head of the executive agency that entered into the contract 
shall modify the contract to reflect paragraphs (2)(B) and (3)(B) of 
subsection (a). All those modifications shall be made without requiring 
consideration.
  (g) Adjustment of Amounts.--Effective on October 1 of each year that 
is divisible by 5, each amount set forth in subsection (a) shall be 
adjusted to the amount that is equal to the fiscal year 1994 constant 
dollar value of the amount set forth. Any amount, as so adjusted, that 
is not evenly divisible by $50,000 shall be rounded to the nearest 
multiple of $50,000. In the case of an amount that is evenly divisible 
by $25,000 but not evenly divisible by $50,000, the amount shall be 
rounded to the next higher multiple of $50,000.

Sec. 3503. Exceptions

  (a) In General.--Submission of certified cost or pricing data shall 
not be required under section 3502 of this title in the case of a 
contract, a subcontract, or a modification of a contract or 
subcontract--
          (1) for which the price agreed on is based on--
                  (A) adequate price competition; or
                  (B) prices set by law or regulation;
          (2) for the acquisition of a commercial item; or

[[Page 124 STAT. 3767]]

          (3) in an exceptional case when the head of the procuring 
        activity, without delegation, determines that the requirements 
        of this chapter may be waived and justifies in writing the 
        reasons for the determination.

  (b) 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 exception to the submission 
of certified cost or pricing data in paragraph (1) or (2) of subsection 
(a), submission of certified cost or pricing data shall not be required 
under section 3502 of this title if--
          (1) the contract or subcontract being modified is a contract 
        or subcontract for which submission of certified cost or pricing 
        data may not be required by reason of paragraph (1) or (2) of 
        subsection (a); and
          (2) the modification would not change the contract or 
        subcontract 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.

Sec. 3504. Cost or pricing data on below-threshold contracts

  (a) Authority To Require Submission.--Subject to subsection (b), when 
certified cost or pricing data are not required to be submitted by 
section 3502 of this title for a contract, subcontract, or modification 
of a contract or subcontract, the 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 the 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 the data 
to be submitted under this section, the head of the procuring activity 
shall justify in writing the reason for the requirement.
  (b) Exception.--The head of the procuring activity may not require 
certified cost or pricing data to be submitted under this section for 
any contract or subcontract, or modification of a contract or 
subcontract, covered by the exceptions in section 3503(a)(1) or (2) of 
this title.
  (c) Delegation of Authority Prohibited.--The head of a procuring 
activity may not delegate the functions under this section.

Sec. 3505. Submission of other information

  (a) Authority To Require Submission.--When certified cost or pricing 
data are not required to be submitted under this chapter for a contract, 
subcontract, or modification of a contract or subcontract, the 
contracting officer shall require submission of data other than 
certified cost or pricing data to the extent necessary to determine the 
reasonableness of the price of the contract, subcontract, or 
modification of the contract or subcontract. Except in the case of a 
contract or subcontract covered by the exceptions in section 3503(a)(1) 
of this title, the contracting officer shall require that the data 
submitted include, at a minimum, appropriate information on the prices 
at which the same item or similar items have previously been sold that 
is adequate for evaluating the reasonableness of the price for the 
procurement.
  (b) Limitations on Authority.--The Federal Acquisition Regulation 
shall include the following provisions regarding the types of

[[Page 124 STAT. 3768]]

information that contracting officers may require under subsection (a):
          (1) Reasonable limitations.--Reasonable limitations on 
        requests for sales data relating to commercial items.
          (2) Limitation on scope of request.--A requirement that a 
        contracting officer limit, to the maximum extent practicable, 
        the scope of any request for information relating to commercial 
        items from an offeror to only that information that is in the 
        form regularly maintained by the offeror in commercial 
        operations.
          (3) Information not to be disclosed.--A statement that any 
        information received relating to commercial items that is exempt 
        from disclosure under section 552(b) of title 5 shall not be 
        disclosed by the Federal Government.

Sec. 3506. Price reductions for defective cost or pricing data

  (a) Provision Requiring Adjustment.--
          (1) In general.--A prime contract (or change or modification 
        to a prime contract) under which a certificate under section 
        3502(b) of this title is required shall contain a provision that 
        the price of the contract to the Federal Government, 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 the price was increased because the 
        contractor (or any subcontractor required to make the 
        certificate available) submitted defective cost or pricing data.
          (2) What constitutes defective cost or pricing data.--For the 
        purposes of this chapter, defective cost or pricing data are 
        cost or pricing data that, as of the date of agreement on the 
        price of the contract (or another date agreed on between the 
        parties), were inaccurate, incomplete, or noncurrent. If for 
        purposes of the preceding sentence the parties agree on a date 
        other than the date of agreement on the price of the contract, 
        the date agreed on by the parties shall be as close to the date 
        of agreement on the price of the contract as is practicable.

  (b) Valid Defense.--In determining for purposes of a contract price 
adjustment under a contract provision required by subsection (a) 
whether, and to what extent, a contract price was increased because the 
contractor (or a subcontractor) submitted defective cost or pricing 
data, it is a defense that the Federal Government did not rely on the 
defective data submitted by the contractor or subcontractor.
  (c) Invalid Defenses.--It is not a defense to an adjustment of the 
price of a contract under a contract provision required by subsection 
(a) that--
          (1) 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--
                  (A) was the sole source of the property or services 
                procured; or
                  (B) otherwise was in a superior bargaining position 
                with respect to the property or services procured;
          (2) 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

[[Page 124 STAT. 3769]]

        the character of the data to the attention of the contracting 
        officer;
          (3) the contract was based on an agreement between the 
        contractor and the Federal Government about the total cost of 
        the contract and there was no agreement about the cost of each 
        item procured under the contract; or
          (4) the prime contractor or subcontractor did not submit a 
        certification of cost or pricing data relating to the contract 
        as required by section 3502(b) of this title.

  (d) Offsets.--
          (1) When allowed.--A contractor shall be allowed to offset an 
        amount against the amount of a contract price adjustment under a 
        contract provision required by subsection (a) if--
                  (A) the contractor certifies to the contracting 
                officer (or to a designated representative of the 
                contracting officer) that, to the best of the 
                contractor's knowledge and belief, the contractor is 
                entitled to the offset; and
                  (B) the contractor proves that the cost or pricing 
                data were available before the date of agreement on the 
                price of the contract (or price of the modification), 
                or, if applicable, consistent with subsection (a)(2), 
                another date agreed on by the parties, and that the data 
                were not submitted as specified in section 3502(c) of 
                this title before that date.
          (2) When not allowed.--A contractor shall not be allowed to 
        offset an amount otherwise authorized to be offset under 
        paragraph (1) if--
                  (A) the certification under section 3502(b) of this 
                title with respect to the cost or pricing data involved 
                was known to be false when signed; or
                  (B) the Federal Government proves that, had the cost 
                or pricing data referred to in paragraph (1)(B) been 
                submitted to the Federal Government before date of 
                agreement on the price of the contract (or price of the 
                modification), or, if applicable, under subsection 
                (a)(2), another date agreed on by the parties, the 
                submission of the cost or pricing data would not have 
                resulted in an increase in that price in the amount to 
                be offset.

Sec. 3507. Interest and penalties for certain overpayments

  (a) In General.--If the Federal Government makes an overpayment to a 
contractor under a contract with an executive agency subject to this 
chapter and the overpayment was due to the submission by the contractor 
of defective cost or pricing data, the contractor shall be liable to the 
Federal Government--
          (1) for interest on the amount of the overpayment, to be 
        computed--
                  (A) for the period beginning on the date the 
                overpayment was made to the contractor and ending on the 
                date the contractor repays the amount of the overpayment 
                to the Federal Government; and
                  (B) at the current rate prescribed by the Secretary of 
                the Treasury under section 6621 of the Internal Revenue 
                Code of 1986 (26 U.S.C. 6621); and
          (2) if the submission of the defective data was a knowing 
        submission, for an additional amount equal to the amount of the 
        overpayment.

[[Page 124 STAT. 3770]]

  (b) Liability Not Affected by Refusal To Submit Certification.--Any 
liability under this section of a contractor that submits cost or 
pricing data but refuses to submit the certification required by section 
3502(b) of this title with respect to the cost or pricing data is not 
affected by the refusal to submit the certification.

Sec. 3508. Right to examine contractor records

  For the purpose of evaluating the accuracy, completeness, and currency 
of cost or pricing data required to be submitted by this chapter, an 
executive agency shall have the authority provided by section 4706(b)(2) 
of this title.

Sec. 3509. Notification of violations of Federal criminal law or 
                        overpayments

  (a) Definition.--In this section, the term ``covered contract'' means 
any contract in an amount greater than $5,000,000 and more than 120 days 
in duration.
  (b) Federal Acquisition Regulation.--The Federal Acquisition 
Regulation shall include, pursuant to FAR Case 2007-006 (as published at 
72 Fed. Reg. 64019, November 14, 2007) or any follow-on FAR case, 
provisions that require timely notification by Federal contractors of 
violations of Federal criminal law or overpayments in connection with 
the award or performance of covered contracts or subcontracts, including 
those performed outside the United States and those for commercial 
items.

                    CHAPTER 37--AWARDING OF CONTRACTS

Sec.
3701.  Basis of award and rejection.
3702.  Sealed bids.
3703.  Competitive proposals.
3704.  Post-award debriefings.
3705.  Pre-award debriefings.
3706.  Encouragement of alternative dispute resolution.
3707.  Antitrust violations.
3708.  Protests.

Sec. 3701. Basis of award and rejection

  (a) Award.--An executive agency shall evaluate sealed bids and 
competitive proposals, and award a contract, based solely on the factors 
specified in the solicitation.
  (b) Rejection.--All sealed bids or competitive proposals received in 
response to a solicitation may be rejected if the agency head determines 
that rejection is in the public interest.

Sec. 3702. Sealed bids

  (a) Opening of Bids.--Sealed bids shall be opened publicly at the time 
and place stated in the solicitation.
  (b) Criteria for Awarding Contract.--The executive agency shall 
evaluate the bids in accordance with section 3701(a) of this title 
without discussions with the bidders and, except as provided in section 
3701(b) of this title, shall award a contract with reasonable promptness 
to the responsible source whose bid conforms to the solicitation and is 
most advantageous to the Federal Government, considering only price and 
the other price-related factors included in the solicitation.
  (c) Notice of Award.--The award of a contract shall be made by 
transmitting, in writing or by electronic means, notice of the

[[Page 124 STAT. 3771]]

award to the successful bidder. Within 3 days after the date of contract 
award, the executive agency shall notify, in writing or by electronic 
means, each bidder not awarded the contract that the contract has been 
awarded.

Sec. 3703. Competitive proposals

  (a) Evaluation and Award.--An executive agency shall evaluate 
competitive proposals in accordance with section 3701(a) of this title 
and may award a contract--
          (1) after discussions with the offerors, provided that written 
        or oral discussions have been conducted with all responsible 
        offerors who submit proposals within the competitive range; or
          (2) based on the proposals received and without discussions 
        with the offerors (other than discussions conducted for the 
        purpose of minor clarification), if, as required by section 
        3306(b)(2)(B)(i) of this title, the solicitation included a 
        statement that proposals are intended to be evaluated, and award 
        made, without discussions unless discussions are determined to 
        be necessary.

  (b) Limit on Number of Proposals.--If the contracting officer 
determines that the number of offerors that would otherwise be included 
in the competitive range under subsection (a)(1) exceeds the number at 
which an efficient competition can be conducted, the contracting officer 
may limit the number of proposals in the competitive range, in 
accordance with the criteria specified in the solicitation, to the 
greatest number that will permit an efficient competition among the 
offerors rated most highly in accordance with those criteria.
  (c) Criteria for Awarding Contract.--Except as otherwise provided in 
section 3701(b) of this title, the executive agency shall award a 
contract with reasonable promptness to the responsible source whose 
proposal is most advantageous to the Federal Government, considering 
only cost or price and the other factors included in the solicitation.
  (d) Notice of Award.--The executive agency shall award the contract by 
transmitting, in writing or by electronic means, notice of the award to 
that source and, within 3 days after the date of contract award, shall 
notify, in writing or by electronic means, all other offerors of the 
rejection of their proposals.

Sec. 3704. Post-award debriefings

  (a) Request for Debriefing.--When a contract is awarded by the head of 
an executive agency on the basis of competitive proposals, an 
unsuccessful offeror, on written request received by the agency within 3 
days after the date on which the unsuccessful offeror receives the 
notification of the contract award, shall be debriefed and furnished the 
basis for the selection decision and contract award.
  (b) When Debriefing To Be Conducted.--The executive agency shall 
debrief the offeror within, to the maximum extent practicable, 5 days 
after receipt of the request by the executive agency.
  (c) Information To Be Provided.--The debriefing shall include, at a 
minimum--
          (1) the executive agency's evaluation of the significant weak 
        or deficient factors in the offeror's offer;
          (2) the overall evaluated cost and technical rating of the 
        offer of the contractor awarded the contract and the overall

[[Page 124 STAT. 3772]]

        evaluated cost and technical rating of the offer of the 
        debriefed offeror;
          (3) the overall ranking of all offers;
          (4) a summary of the rationale for the award;
          (5) 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
          (6) 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.

  (d) Information Not To Be Included.--The debriefing may not include 
point-by-point comparisons of the debriefed offeror's offer with other 
offers and may not disclose any information that is exempt from 
disclosure under section 552(b) of title 5.
  (e) Inclusion of Statement in Solicitation.--Each solicitation for 
competitive proposals shall include a statement that information 
described in subsection (c) may be disclosed in post-award debriefings.
  (f) After Successful Protest.--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 the executive agency shall make available to all 
offerors--
          (1) the information provided in debriefings under this section 
        regarding the offer of the contractor awarded the contract; and
          (2) the same information that would have been provided to the 
        original offerors.

  (g) Summary To Be Included in File.--The contracting officer shall 
include a summary of the debriefing in the contract file.

Sec. 3705. Pre-award debriefings

  (a) Request for Debriefing.--When the contracting officer excludes an 
offeror submitting a competitive proposal from the competitive range (or 
otherwise excludes that offeror from further consideration prior to the 
final source selection decision), the excluded offeror may request in 
writing, within 3 days after the date on which the excluded offeror 
receives notice of its exclusion, a debriefing prior to award.
  (b) When Debriefing To Be Conducted.--The contracting officer shall 
make every effort to debrief the unsuccessful offeror as soon as 
practicable but may refuse the request for a debriefing if it is not in 
the best interests of the Federal Government to conduct a debriefing at 
that time.
  (c) Precondition for Post-Award Debriefing.--The contracting officer 
is required to debrief an excluded offeror in accordance with section 
3704 of this title only if that offeror requested and was refused a pre-
award debriefing under subsections (a) and (b).
  (d) Information To Be Provided.--The debriefing conducted under this 
section shall include--
          (1) the executive agency's evaluation of the significant 
        elements in the offeror's offer;
          (2) a summary of the rationale for the offeror's exclusion; 
        and

[[Page 124 STAT. 3773]]

          (3) 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.

  (e) Information Not To Be Disclosed.--The debriefing conducted 
pursuant to this section may not disclose the number or identity of 
other offerors and shall not disclose information about the content, 
ranking, or evaluation of other offerors' proposals.
  (f) Summary To Be Included in File.--The contracting officer shall 
include a summary of the debriefing in the contract file.

Sec. 3706. Encouragement of alternative dispute resolution

  The Federal Acquisition Regulation shall include a provision 
encouraging the use of alternative dispute resolution techniques to 
provide informal, expeditious, and inexpensive procedures for an offeror 
to consider using before filing a protest, prior to the award of a 
contract, of the exclusion of the offeror from the competitive range (or 
otherwise from further consideration) for that contract.

Sec. 3707. Antitrust violations

  If the agency head considers that a bid or proposal evidences a 
violation of the antitrust laws, the agency head shall refer the bid or 
proposal to the Attorney General for appropriate action.

Sec. 3708. Protests

  (a) Protest File.--
          (1) Establishment and access.--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, and an actual or prospective offeror 
        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) Redacted information.--Information exempt from disclosure 
        under section 552 of title 5 may be redacted in a file 
        established pursuant to paragraph (1) unless an applicable 
        protective order provides otherwise.

  (b) Agency Actions on Protests.--If, in connection with a protest, the 
head of an executive agency determines that a solicitation, proposed 
award, or award does not comply with the requirements of law or 
regulation, the head of the executive agency may--
          (1) take any action set out in subparagraphs (A) to (F) of 
        subsection (b)(1) of section 3554 of title 31; and
          (2) pay costs described in paragraph (1) of section 3554(c) of 
        title 31 within the limits referred to in paragraph (2) of 
        section 3554(c).

                 CHAPTER 39--SPECIFIC TYPES OF CONTRACTS

Sec.
3901.  Contracts awarded using procedures other than sealed-bid 
           procedures.
3902.  Severable services contracts for periods crossing fiscal years.
3903.  Multiyear contracts.
3904.  Contract authority for severable services contracts and multiyear 
           contracts.
3905.  Cost contracts.
3906.  Cost-reimbursement contracts.

[[Page 124 STAT. 3774]]

Sec. 3901. Contracts awarded using procedures other than sealed-bid 
                        procedures

  (a) Authorized Types.--Except as provided in section 3905 of this 
title, contracts awarded after using procedures other than sealed-bid 
procedures may be of any type which in the opinion of the agency head 
will promote the best interests of the Federal Government.
  (b) Required Warranty.--
          (1) Content.--Every contract awarded after using procedures 
        other than sealed-bid procedures shall contain a suitable 
        warranty, as determined by the agency head, by the contractor 
        that no person or selling agency has been employed or retained 
        to solicit or secure the contract on an agreement or 
        understanding for a commission, percentage, brokerage, or 
        contingent fee, except for bona fide employees or bona fide 
        established commercial or selling agencies the contractor 
        maintains to secure business.
          (2) Remedy for breach or violation.--For the breach or 
        violation of the warranty, the Federal Government may annul the 
        contract without liability or deduct from the contract price or 
        consideration the full amount of the commission, percentage, 
        brokerage, or contingent fee.
          (3) Nonapplication.--Paragraph (1) does not apply to a 
        contract for an amount that is not greater than the simplified 
        acquisition threshold or to a contract for the acquisition of 
        commercial items.

Sec. 3902. Severable services contracts for periods crossing fiscal 
                        years

  (a) Authority To Enter Into Contract.--The head of an executive agency 
may enter into a contract for the 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 this section.

Sec. 3903. Multiyear contracts

  (a) Definition.--In this section, a multiyear contract is a contract 
for the purchase of property or services for more than one, but not more 
than 5, program years.
  (b) Authority To Enter Into Contract.--An executive agency may enter 
into a multiyear contract for the acquisition of property or services 
if--
          (1) funds are available and obligated for the contract, for 
        the full period of the contract or for the first fiscal year in 
        which the contract is in effect, and for the estimated costs 
        associated with a necessary termination of the 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 Federal Government by encouraging full and open 
                competition or promoting economy in administration, 
                performance, and operation of the agency's programs.

[[Page 124 STAT. 3775]]

  (c) 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 the contract in a fiscal year covered by the contract. 
Funds available for paying termination costs shall remain available for 
that purpose until the costs associated with termination of the contract 
are paid.
  (d) Cancellation Ceiling Notice.--Before a contract described in 
subsection (b) 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 Congress. The 
contract may not be awarded until the end of the 30-day period beginning 
on the date of the notification.
  (e) Contingency Clause for Appropriation of Funds.--A multiyear 
contract may provide that performance under the contract after the first 
year of the contract is contingent on the appropriation of funds and (if 
the contract does so provide) that a cancellation payment shall be made 
to the contractor if the funds are not appropriated.
  (f) Other Law Not Affected.--This section does not modify or affect 
any other provision of law that authorizes multiyear contracts.

Sec. 3904. Contract authority for severable services contracts and 
                        multiyear contracts

  (a) Comptroller General.--The Comptroller General may use available 
funds to enter into contracts for the procurement of severable services 
for a period that begins in one fiscal year and ends in the next fiscal 
year and to enter into multiyear contracts for the acquisition of 
property and nonaudit-related services to the same extent as executive 
agencies under sections 3902 and 3903 of this title.
  (b) Library of Congress.--The Library of Congress may use available 
funds to enter into contracts for the lease or procurement of severable 
services for a period that begins in one fiscal year and ends in the 
next fiscal year and to enter into multiyear contracts for the 
acquisition of property and services pursuant to sections 3902 and 3903 
of this title.
  (c) Chief Administrative Officer of the House of Representatives.--The 
Chief Administrative Officer of the House of Representatives may enter 
into--
          (1) contracts for the procurement of severable services for a 
        period that begins in one fiscal year and ends in the next 
        fiscal year to the same extent as the head of an executive 
        agency under the authority of section 3902 of this title; and
          (2) multiyear contracts for the acquisitions of property and 
        nonaudit-related services to the same extent as executive 
        agencies under the authority of section 3903 of this title.

  (d) Congressional Budget Office.--The Congressional Budget Office may 
use available funds to enter into contracts for the procurement of 
severable services for a period that begins in one fiscal year and ends 
in the next fiscal year and may enter into multiyear contracts for the 
acquisition of property and services to the same extent as executive 
agencies under the authority of sections 3902 and 3903 of this title.
  (e) Secretary and Sergeant at Arms and Doorkeeper of the Senate.--
Subject to regulations prescribed by the Committee

[[Page 124 STAT. 3776]]

on Rules and Administration of the Senate, the Secretary and the 
Sergeant at Arms and Doorkeeper of the Senate may enter into--
          (1) contracts for the procurement of severable services for a 
        period that begins in one fiscal year and ends in the next 
        fiscal year to the same extent and under the same conditions as 
        the head of an executive agency under the authority of section 
        3902 of this title; and
          (2) multiyear contracts for the acquisition of property and 
        services to the same extent and under the same conditions as 
        executive agencies under the authority of section 3903 of this 
        title.

  (f) Capitol Police.--The United States Capitol Police may enter into--
          (1) contracts for the procurement of severable services for a 
        period that begins in one fiscal year and ends in the next 
        fiscal year to the same extent as the head of an executive 
        agency under the authority of section 3902 of this title; and
          (2) multiyear contracts for the acquisitions of property and 
        nonaudit-related services to the same extent as executive 
        agencies under the authority of section 3903 of this title.

  (g) Architect of the Capitol.--The Architect of the Capitol may enter 
into--
          (1) contracts for the procurement of severable services for a 
        period that begins in one fiscal year and ends in the next 
        fiscal year to the same extent as the head of an executive 
        agency under the authority of section 3902 of this title; and
          (2) multiyear contracts for the acquisitions of property and 
        nonaudit-related services to the same extent as executive 
        agencies under the authority of section 3903 of this title.

  (h) Secretary of the Smithsonian Institution.--The Secretary of the 
Smithsonian Institution may enter into--
          (1) contracts for the procurement of severable services for a 
        period that begins in one fiscal year and ends in the next 
        fiscal year under the authority of section 3902 of this title; 
        and
          (2) multiyear contracts for the acquisition of property and 
        services under the authority of section 3903 of this title.

Sec. 3905. Cost contracts

  (a) Cost-Plus-A-Percentage-Of-Cost Contracts Disallowed.--The cost-
plus-a-percentage-of-cost system of contracting shall not be used.
  (b) Cost-Plus-A-Fixed-Fee Contracts.--
          (1) In general.--Except as provided in paragraphs (2) and (3), 
        the fee in a cost-plus-a-fixed-fee contract shall not exceed 10 
        percent of the estimated cost of the contract, not including the 
        fee, as determined by the agency head at the time of entering 
        into the contract.
          (2) Experimental, developmental, or research work.--The fee in 
        a cost-plus-a-fixed-fee contract for experimental, 
        developmental, or research work shall not exceed 15 percent of 
        the estimated cost of the contract, not including the fee.
          (3) Architectural or engineering services.--The fee in a cost-
        plus-a-fixed-fee contract for architectural or engineering 
        services relating to any public works or utility project may 
        include the contractor's costs and shall not exceed 6 percent of 
        the estimated cost, not including the fee, as determined

[[Page 124 STAT. 3777]]

        by the agency head at the time of entering into the contract, of 
        the project to which the fee applies.

  (c) Notification.--All cost and cost-plus-a-fixed-fee contracts shall 
provide for advance notification by the contractor to the procuring 
agency of any subcontract on a cost-plus-a-fixed-fee basis and of any 
fixed-price subcontract or purchase order which exceeds in dollar amount 
either the simplified acquisition threshold or 5 percent of the total 
estimated cost of the prime contract.
  (d) Right To Audit.--A procuring agency, through any authorized 
representative thereof, has the right to inspect the plans and to audit 
the books and records of a prime contractor or subcontractor engaged in 
the performance of a cost or cost-plus-a-fixed-fee contract.

Sec. 3906. Cost-reimbursement contracts

  (a) Definition.--In this section, the term ``executive agency'' has 
the same meaning given in section 133 of this title.
  (b) Regulations on the Use of Cost-Reimbursement Contracts.--The 
Federal Acquisition Regulation shall address the use of cost-
reimbursement contracts.
  (c) Content.--The regulations promulgated under subsection (b) shall 
include guidance regarding--
          (1) when and under what circumstances cost-reimbursement 
        contracts are appropriate;
          (2) the acquisition plan findings necessary to support a 
        decision to use cost-reimbursement contracts; and
          (3) the acquisition workforce resources necessary to award and 
        manage cost-reimbursement contracts.

  (d) Annual Report.--
          (1) In general.--The Director of the Office of Management and 
        Budget shall submit an annual report to Congressional committees 
        identified in subsection (e) on the use of cost-reimbursement 
        contracts and task or delivery orders by all executive agencies.
          (2) Contents.--The report shall include--
                  (A) the total number and value of contracts awarded 
                and orders issued during the covered fiscal year;
                  (B) the total number and value of cost-reimbursement 
                contracts awarded and orders issued during the covered 
                fiscal year; and
                  (C) an assessment of the effectiveness of the 
                regulations promulgated pursuant to subsection (b) in 
                ensuring the appropriate use of cost-reimbursement 
                contracts.
          (3) Time requirements.--
                  (A) Deadline.--The report shall be submitted no later 
                than March 1 and shall cover the fiscal year ending 
                September 30 of the prior year.
                  (B) Limitation.--The report shall be submitted from 
                March 1, 2009, until March 1, 2014.

  (e) Congressional Committees.--The report required by subsection (d) 
shall be submitted to--
          (1) the Committee on Oversight and Government Reform of the 
        House of Representatives;
          (2) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
          (3) the Committees on Appropriations of the House of 
        Representatives and the Senate; and

[[Page 124 STAT. 3778]]

          (4) in the case of the Department of Defense and the 
        Department of Energy, the Committees on Armed Services of the 
        Senate and the House of Representatives.

              CHAPTER 41--TASK AND DELIVERY ORDER CONTRACTS

Sec.
4101.  Definitions.
4102.  Authorities or responsibilities not affected.
4103.  General authority.
4104.  Guidance on use of task and delivery order contracts.
4105.  Advisory and assistance services.
4106.  Orders.

Sec. 4101. Definitions

  In this chapter:
          (1) Delivery order contract.--The term ``delivery order 
        contract'' means a contract for property that--
                  (A) does not procure or specify a firm quantity of 
                property (other than a minimum or maximum quantity); and
                  (B) provides for the issuance of orders for the 
                delivery of property during the period of the contract.
          (2) Task order contract.--The term ``task order contract'' 
        means a contract for services that--
                  (A) does not procure or specify a firm quantity of 
                services (other than a minimum or maximum quantity); and
                  (B) provides for the issuance of orders for the 
                performance of tasks during the period of the contract.

Sec. 4102. Authorities or responsibilities not affected

  This chapter does not modify or supersede, and is not intended to 
impair or restrict, authorities or responsibilities under sections 1101 
to 1104 of title 40.

Sec. 4103. General authority

  (a) Authority To Award.--Subject to the requirements of this section, 
section 4106 of this title, and other applicable law, the head of an 
executive agency may enter into a task or delivery order contract for 
procurement of services or property.
  (b) Solicitation.--The solicitation for a task or delivery order 
contract shall include--
          (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;
          (2) the maximum quantity or dollar value of the services or 
        property to be procured under the contract; and
          (3) a statement of work, specifications, or other description 
        that reasonably describes the general scope, nature, complexity, 
        and purposes of the services or property to be procured under 
        the contract.

  (c) Applicability of Restriction on Use of Noncompetitive 
Procedures.--The head of an executive agency may use procedures other 
than competitive procedures to enter into a task or delivery order 
contract under this section only if an exception in section 3304(a) of 
this title applies to the contract and the use of those procedures is 
approved in accordance with section 3304(e) of this title.
  (d) Single and Multiple Contract Awards.--
          (1) Exercise of authority.--The head of an executive agency 
        may exercise the authority provided in this section--

[[Page 124 STAT. 3779]]

                  (A) to award a single task or delivery order contract; 
                or
                  (B) if the solicitation states that the head of the 
                executive agency has the option to do so, to award 
                separate task or delivery order contracts for the same 
                or similar services or property to 2 or more sources.
          (2) Determination not required.--No determination under 
        section 3303 of this title is required for an award of multiple 
        task or delivery order contracts under paragraph (1)(B).
          (3) Single source award for task or delivery order contracts 
        exceeding  $100,000,000.--
                  (A) When single awards are allowed.--No task or 
                delivery order contract in an amount estimated to exceed 
                $100,000,000 (including all options) may be awarded to a 
                single source unless the head of the executive agency 
                determines in writing that--
                        (i) the task or delivery orders expected under 
                      the contract are so integrally related that only a 
                      single source can reasonably perform the work;
                        (ii) the contract provides only for firm, fixed 
                      price task orders or delivery orders for--
                                  (I) products for which unit prices are 
                                established in the contract; or
                                  (II) services for which prices are 
                                established in the contract for the 
                                specific tasks to be performed;
                        (iii) only one source is qualified and capable 
                      of performing the work at a reasonable price to 
                      the Federal Government; or
                        (iv) because of exceptional circumstances, it is 
                      necessary in the public interest to award the 
                      contract to a single source.
                  (B) Notification of Congress.--The head of the 
                executive agency shall notify Congress within 30 days 
                after any determination under subparagraph (A)(iv).
          (4) Regulations.--Regulations implementing this subsection 
        shall establish--
                  (A) a preference for awarding, to the maximum extent 
                practicable, multiple task or delivery order contracts 
                for the same or similar services or property under 
                paragraph (1)(B); and
                  (B) criteria for determining when award of multiple 
                task or delivery order contracts would not be in the 
                best interest of the Federal Government.

  (e) Contract Modifications.--A task or delivery order may not increase 
the scope, period, or maximum value of the task or delivery order 
contract under which the order is issued. The scope, period, or maximum 
value of the contract may be increased only by modification of the 
contract.
  (f) Inapplicability to Contracts for Advisory and Assistance 
Services.--Except as otherwise specifically provided in section 4105 of 
this title, 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).
  (g) Relationship to Other Contracting Authority.--Nothing in this 
section may be construed to limit or expand any authority of the head of 
an executive agency or the Administrator of General Services to enter 
into schedule, multiple award, or task or delivery order contracts under 
any other provision of law.

[[Page 124 STAT. 3780]]

Sec. 4104. Guidance on use of task and delivery order contracts

  (a) Guidance in Federal Acquisition Regulation.--The Federal 
Acquisition Regulation issued in accordance with sections 1121(b) and 
1303(a)(1) of this title shall provide guidance to agencies on the 
appropriate use of task and delivery order contracts in accordance with 
this chapter and sections 2304a to 2304d of title 10.
  (b) Content of Regulations.--The regulations issued pursuant to 
subsection (a) at a minimum shall provide specific guidance on--
          (1) the appropriate use of Government-wide and other 
        multiagency contracts entered into in accordance with this 
        chapter and sections 2304a to 2304d of title 10; and
          (2) steps that agencies should take in entering into and 
        administering multiple award task and delivery order contracts 
        to ensure compliance with the requirement in--
                  (A) section 11312 of title 40 for capital planning and 
                investment control in purchases of information 
                technology products and services;
                  (B) section 4106(c) of this title and section 2304c(b) 
                of title 10 to ensure that all contractors are afforded 
                a fair opportunity to be considered for the award of 
                task and delivery orders; and
                  (C) section 4106(e) of this title and section 2304c(c) 
                of title 10 for a statement of work in each task or 
                delivery order issued that clearly specifies all tasks 
                to be performed or property to be delivered under the 
                order.

  (c) Federal Supply Schedules Program.--The Administrator for Federal 
Procurement Policy shall consult with the Administrator of General 
Services to assess the effectiveness of the multiple awards schedule 
program of the General Services Administration referred to in section 
152(3) of this title that is administered as the Federal Supply 
Schedules program. The assessment shall include examination of--
          (1) the administration of the program by the Administrator of 
        General Services; and
          (2) the ordering and program practices followed by Federal 
        customer agencies in using schedules established under the 
        program.

Sec. 4105. Advisory and assistance services

  (a) Definition.--In this section, the term ``advisory and assistance 
services'' has the same meaning given that term in section 1105(g) of 
title 31.
  (b) Authority To Award.--
          (1) In general.--Subject to the requirements of this section, 
        section 4106 of this title, and other applicable law, the head 
        of an executive agency may enter into a task order contract for 
        procurement of advisory and assistance services.
          (2) Only under this section.--The head of an executive agency 
        may enter into a task order contract for advisory and assistance 
        services only under this section.

    (c) Contract Period.--The period of a task order contract entered 
into under this section, including all periods of extensions of the 
contract under options, modifications, or otherwise, may not exceed 5 
years unless a longer period is specifically authorized in a law that is 
applicable to the contract.

[[Page 124 STAT. 3781]]

  (d) Content of Notice.--The notice required by section 1708 of this 
title 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.
  (e) Required Content of Solicitation and Contract.--
          (1) Solicitation.--The solicitation shall include the 
        information (regarding services) described in section 4103(b) of 
        this title.
          (2) Contract.--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.

  (f) Multiple Awards.--
          (1) Authority to make multiple awards.--On the basis of one 
        solicitation, the head of an executive agency may award separate 
        task order contracts under this section for the same or similar 
        services to 2 or more sources if the solicitation states that 
        the head of the executive agency has the option to do so.
          (2) Content of solicitation.--In the case of a task order 
        contract for advisory and assistance services to be entered into 
        under this section, if the contract period is to exceed 3 years 
        and the contract amount is estimated to exceed $10,000,000 
        (including all options), the solicitation shall--
                  (A) provide for a multiple award authorized under 
                paragraph (1); and
                  (B) include a statement that the head of the executive 
                agency may also elect to award only one task order 
                contract if the head of the executive agency determines 
                in writing that only one of the offerors is capable of 
                providing the services required at the level of quality 
                required.
          (3) Nonapplication.--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.

  (g) Contract Modifications.--
          (1) Increase in scope, period, or maximum value of contract 
        only by modification of contract.--A task order may not increase 
        the scope, period, or maximum value of the task order contract 
        under which the order is issued. The scope, period, or maximum 
        value of the contract may be increased only by modification of 
        the contract.
          (2) Use of competitive procedures.--Unless use of procedures 
        other than competitive procedures is authorized by an exception 
        in section 3304(a) of this title and approved in accordance with 
        section 3304(e) of this title, competitive procedures shall be 
        used for making such a modification.
          (3) Notice.--Notice regarding the modification shall be 
        provided in accordance with section 1708 of this title and 
        section 8(e) of the Small Business Act (15 U.S.C. 637(e)).

  (h) Contract Extensions.--
          (1) When contract may be extended.--Notwithstanding the 
        limitation on the contract period set forth in subsection (c) or 
        in a solicitation or contract pursuant to subsection (f),

[[Page 124 STAT. 3782]]

        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 6 months if the head of the 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 to ensure continuity of 
                the receipt of services pending the award of, and 
                commencement of performance under, the follow-on 
                contract.
          (2) Limit of one extension.--A task order contract may be 
        extended under paragraph (1) only once and only in accordance 
        with the limitations and requirements of this subsection.

  (i) 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 the contract determines that, under the 
contract, advisory and assistance services are necessarily incident to, 
and not a significant component of, the contract.

Sec. 4106. Orders

  (a) Application.--This section applies to task and delivery order 
contracts entered into under sections 4103 and 4105 of this title.
  (b) Actions Not Required for Issuance of Orders.--The following 
actions are not required for issuance of a task or delivery order under 
a task or delivery order contract:
          (1) A separate notice for the order under section 1708 of this 
        title or section 8(e) of the Small Business Act (15 U.S.C. 
        637(e)).
          (2) Except as provided in subsection (c), a competition (or a 
        waiver of competition approved in accordance with section 
        3304(e) of this title) that is separate from that used for 
        entering into the contract.

  (c) Multiple Award Contracts.--When multiple contracts are awarded 
under section 4103(d)(1)(B) or 4105(f) of this title, all contractors 
awarded the contracts shall be provided a fair opportunity to be 
considered, pursuant to procedures set forth in the contracts, for each 
task or delivery order in excess of $2,500 that is to be issued under 
any of the contracts, unless--
          (1) the executive agency's need for the services or property 
        ordered is of such unusual urgency that providing the 
        opportunity to all of those contractors would result in 
        unacceptable delays in fulfilling that need;
          (2) only one of those contractors is capable of providing the 
        services or property required at the level of quality required 
        because the services or property ordered are unique or highly 
        specialized;
          (3) the task or delivery order should be issued on a sole-
        source basis in the interest of economy and efficiency because 
        it is a logical follow-on to a task or delivery order already 
        issued on a competitive basis; or
          (4) it is necessary to place the order with a particular 
        contractor to satisfy a minimum guarantee.

  (d) Enhanced Competition for Orders in Excess of $5,000,000.--In the 
case of a task or delivery order in excess of $5,000,000, the 
requirement to provide all contractors a fair opportunity to be 
considered under subsection (c) is not met unless all such contractors 
are provided, at a minimum--

[[Page 124 STAT. 3783]]

          (1) a notice of the task or delivery order that includes a 
        clear statement of the executive agency's requirements;
          (2) a reasonable period of time to provide a proposal in 
        response to the notice;
          (3) disclosure of the significant factors and subfactors, 
        including cost or price, that the executive agency expects to 
        consider in evaluating such proposals, and their relative 
        importance;
          (4) in the case of an award that is to be made on a best value 
        basis, a written statement documenting--
                  (A) the basis for the award; and
                  (B) the relative importance of quality and price or 
                cost factors; and
          (5) an opportunity for a post-award debriefing consistent with 
        the requirements of section 3704 of this title.

  (e) 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.
  (f) Protests.--
          (1) Protest not authorized.--A protest is not authorized in 
        connection with the issuance or proposed issuance of a task or 
        delivery order except for--
                  (A) a protest on the ground that the order increases 
                the scope, period, or maximum value of the contract 
                under which the order is issued; or
                  (B) a protest of an order valued in excess of 
                $10,000,000.
          (2) Jurisdiction over protests.--Notwithstanding section 3556 
        of title 31, the Comptroller General shall have exclusive 
        jurisdiction of a protest authorized under paragraph (1)(B).
          (3) Effective period.--This subsection shall be in effect for 
        three years, beginning on the date that is 120 days after 
        January 28, 2008.

  (g) Task and Delivery Order Ombudsman.--
          (1) Appointment or designation and responsibilities.--The head 
        of each executive agency who awards multiple task or delivery 
        order contracts under section 4103(d)(1)(B) or 4105(f) of this 
        title shall appoint or designate a task and delivery order 
        ombudsman who shall be responsible for reviewing complaints from 
        the contractors on those 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 (c).
          (2) Who is eligible.--The task and delivery order ombudsman 
        shall be a senior agency official who is independent of the 
        contracting officer for the contracts and may be the executive 
        agency's advocate for competition.

                       CHAPTER 43--ALLOWABLE COSTS

Sec.
4301.  Definitions.
4302.  Adjustment of threshold amount of covered contract.
4303.  Effect of submission of unallowable costs.
4304.  Specific costs not allowable.
4305.  Required regulations.
4306.  Applicability of regulations to subcontractors.
4307.  Contractor certification.
4308.  Penalties for submission of cost known to be unallowable.
4309.  Burden of proof on contractor.
4310.  Proceeding costs not allowable.

[[Page 124 STAT. 3784]]

Sec. 4301. Definitions

  In this chapter:
          (1) Compensation.--The term ``compensation'', for a fiscal 
        year, means the total amount of wages, salary, bonuses, and 
        deferred compensation for the fiscal year, whether paid, earned, 
        or otherwise accruing, as recorded in an employer's cost 
        accounting records for the fiscal year.
          (2) Covered contract.--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 the term does not 
        include a fixed-price contract without cost incentives or any 
        firm fixed-price contract for the purchase of commercial items.
          (3) Fiscal year.--The term ``fiscal year'' means a fiscal year 
        established by a contractor for accounting purposes.
          (4) Senior executive.--The term ``senior executive'', with 
        respect to a contractor, means the 5 most highly compensated 
        employees in management positions at each home office and each 
        segment of the contractor.

Sec. 4302. Adjustment of threshold amount of covered contract

  Effective on October 1 of each year that is divisible by 5, the amount 
set forth in section 4301(2) of this title shall be adjusted to the 
equivalent amount in constant fiscal year 1994 dollars. An adjusted 
amount that is not evenly divisible by $50,000 shall be rounded to the 
nearest multiple of $50,000. If an amount 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.

Sec. 4303. Effect of submission of unallowable costs

  (a) Indirect Cost That Violates Federal Acquisition Regulation 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 those costs have been accrued and if that proposal 
includes the submission of a cost that is unallowable because the cost 
violates a cost principle in the Federal Acquisition Regulation or an 
executive agency supplement to the Federal Acquisition Regulation, the 
cost shall be disallowed.
  (b) Penalty for Violation of Cost Principle.--
          (1) Unallowable cost in proposal.--If the executive agency 
        determines that a cost submitted by a contractor in its proposal 
        for settlement is expressly unallowable under a cost principle 
        referred to in subsection (a) that defines the allowability of 
        specific selected costs, the executive agency shall assess a 
        penalty against the contractor in an amount equal to--
                  (A) the amount of the disallowed cost allocated to 
                covered contracts for which a proposal for settlement of 
                indirect costs has been submitted; plus
                  (B) interest (to be computed based on provisions in 
                the Federal Acquisition Regulation) to compensate the 
                Federal Government for the use of the amount which a 
                contractor has been paid in excess of the amount to 
                which the contractor was entitled.
          (2) Cost determined to be unallowable before proposal 
        submitted.--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

[[Page 124 STAT. 3785]]

        that contractor before the submission of that proposal, the 
        executive agency shall assess a penalty against the contractor 
        in an amount equal to 2 times the amount of the disallowed cost 
        allocated to covered contracts for which a proposal for 
        settlement of indirect costs has been submitted.

  (c) Waiver of Penalty.--The Federal Acquisition Regulation shall 
provide for a penalty under subsection (b) to be waived in the case of a 
contractor's proposal for settlement of indirect costs when--
          (1) the contractor withdraws the proposal before the formal 
        initiation of an audit of the proposal by the Federal Government 
        and resubmits a revised proposal;
          (2) the amount of unallowable costs subject to the penalty is 
        insignificant; or
          (3) the contractor demonstrates, to the contracting officer's 
        satisfaction, that--
                  (A) it has established appropriate policies and 
                personnel training and an internal control and review 
                system that provide assurances that unallowable costs 
                subject to penalties are precluded from being included 
                in the contractor's proposal for settlement of indirect 
                costs; and
                  (B) the unallowable costs subject to the penalty were 
                inadvertently incorporated into the proposal.

  (d) Applicability of Contract Disputes Procedure.--An action of an 
executive agency under subsection (a) or (b)--
          (1) shall be considered a final decision for the purposes of 
        section 7103 of this title; and
          (2) is appealable in the manner provided in section 7104(a) of 
        this title.

Sec. 4304. Specific costs not allowable

  (a) Specific Costs.--The following costs are not allowable under a 
covered contract:
          (1) Costs of entertainment, including amusement, diversion, 
        and social activities, and any costs directly associated with 
        those costs (such as tickets to shows or sports events, meals, 
        lodging, rentals, transportation, and gratuities).
          (2) Costs incurred to influence (directly or indirectly) 
        legislative action on any matter pending before Congress, a 
        State legislature, or a legislative body of a political 
        subdivision of a State.
          (3) Costs incurred in defense of any civil or criminal fraud 
        proceeding or similar proceeding (including filing of any false 
        certification) brought by the Federal Government 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).
          (4) Payments of fines and penalties resulting from violations 
        of, or failure to comply with, Federal, State, local, or foreign 
        laws and regulations, except when incurred as a result of 
        compliance with specific terms and conditions of the contract or 
        specific written instructions from the contracting officer 
        authorizing in advance those payments in accordance with 
        applicable provisions of the Federal Acquisition Regulation.
          (5) Costs of membership in any social, dining, or country club 
        or organization.
          (6) Costs of alcoholic beverages.
          (7) Contributions or donations, regardless of the recipient.

[[Page 124 STAT. 3786]]

          (8) Costs of advertising designed to promote the contractor or 
        its products.
          (9) Costs of promotional items and memorabilia, including 
        models, gifts, and souvenirs.
          (10) Costs for travel by commercial aircraft that exceed the 
        amount of the standard commercial fare.
          (11) Costs incurred in making any payment (commonly known as a 
        ``golden parachute payment'') that is--
                  (A) in an amount in excess of the normal severance pay 
                paid by the contractor to an employee on termination of 
                employment; and
                  (B) paid to the employee contingent on, and following, 
                a change in management control over, or ownership of, 
                the contractor or a substantial portion of the 
                contractor's assets.
          (12) Costs of commercial insurance that protects against the 
        costs of the contractor for correction of the contractor's own 
        defects in materials or workmanship.
          (13) Costs of severance pay paid by the contractor to foreign 
        nationals employed by the contractor under a service contract 
        performed outside the United States, to the extent that the 
        amount of severance pay paid in any case exceeds the amount paid 
        in the industry involved under the customary or prevailing 
        practice for firms in that industry providing similar services 
        in the United States, as determined under the Federal 
        Acquisition Regulation.
          (14) 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 Federal 
        Government facility in that country at the request of the 
        government of that country.
          (15) Costs incurred by a contractor in connection with any 
        criminal, civil, or administrative proceeding commenced by the 
        Federal Government or a State, to the extent provided in section 
        4310 of this title.
          (16) Costs of compensation of senior executives of contractors 
        for a fiscal year, regardless of the contract funding source, to 
        the extent that the compensation exceeds the benchmark 
        compensation amount determined applicable for the fiscal year by 
        the Administrator under section 1127 of this title.

  (b) Waiver of Severance Pay Restrictions for Foreign Nationals.--
          (1) Executive agency determination.--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 paragraphs (13) and (14) 
        of subsection (a) to that contract if the executive agency 
        determines that--
                  (A) the application of those provisions to that 
                contract would adversely affect the continuation of a 
                program, project, or activity that provides significant 
                support services for employees of the executive agency 
                posted outside the United States;
                  (B) the contractor has taken (or has established plans 
                to take) appropriate actions within the contractor's 
                control to minimize the amount and number of incidents 
                of the

[[Page 124 STAT. 3787]]

                payment of severance pay by the contractor to employees 
                under the contract who are foreign nationals; and
                  (C) the payment of severance pay is necessary 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.
          (2) Solicitation to include statement about waiver.--An 
        executive agency shall include in the solicitation for a covered 
        contract a statement indicating--
                  (A) that a waiver has been granted under paragraph (1) 
                for the contract; or
                  (B) whether the executive agency will consider 
                granting a waiver and, if the executive agency will 
                consider granting a waiver, the criteria to be used in 
                granting the waiver.
          (3) Determination to be made before contract awarded.--An 
        executive agency shall make the final determination whether to 
        grant a waiver under paragraph (1) with respect to a covered 
        contract before award of the contract.

  (c) Establishment of Definitions, Exclusions, Limitations, and 
Qualifications.--The provisions of the Federal Acquisition Regulation 
implementing this chapter may establish appropriate definitions, 
exclusions, limitations, and qualifications. A submission by a 
contractor of costs that are incurred by the contractor and that are 
claimed to be allowable under Department of Energy management and 
operating contracts shall be considered a proposal for settlement of 
indirect costs incurred by the contractor for any period after those 
costs have been accrued.

Sec. 4305. Required regulations

  (a) In General.--The Federal Acquisition Regulation shall contain 
provisions on the allowability of contractor costs. Those provisions 
shall define in detail and in specific terms the costs that are 
unallowable, in whole or in part, under covered contracts.
  (b) Specific Items.--The regulations shall, at a minimum, clarify the 
cost principles applicable to contractor costs of the following:
          (1) Air shows.
          (2) Membership in civic, community, and professional 
        organizations.
          (3) Recruitment.
          (4) Employee morale and welfare.
          (5) Actions to influence (directly or indirectly) executive 
        branch action on regulatory and contract matters (other than 
        costs incurred in regard to contract proposals pursuant to 
        solicited or unsolicited bids).
          (6) Community relations.
          (7) Dining facilities.
          (8) Professional and consulting services, including legal 
        services.
          (9) Compensation.
          (10) Selling and marketing.
          (11) Travel.
          (12) Public relations.
          (13) Hotel and meal expenses.
          (14) Expense of corporate aircraft.
          (15) Company-furnished automobiles.
          (16) Advertising.

[[Page 124 STAT. 3788]]

          (17) Conventions.

  (c) Additional Requirements.--
          (1) When questioned costs may be resolved.--The Federal 
        Acquisition Regulation shall require that a contracting officer 
        not resolve any questioned costs until the contracting officer 
        has obtained--
                  (A) adequate documentation of those costs; and
                  (B) the opinion of the contract auditor on the 
                allowability of those costs.
          (2) Presence of contract auditor.--The Federal Acquisition 
        Regulation shall provide that, to the maximum extent 
        practicable, a contract auditor be present at any negotiation or 
        meeting with the contractor regarding a determination of the 
        allowability of indirect costs of the contractor.
          (3) Settlement to reflect amount of individual questioned 
        costs.--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 a manner so that the amount of the individual 
        questioned costs that are paid will be reflected in the 
        settlement.

Sec. 4306. Applicability of regulations to subcontractors

  The regulations referred to in sections 4304 and 4305(a) and (b) of 
this title shall require prime contractors of a covered contract, to the 
maximum extent practicable, to apply the provisions of those regulations 
to all subcontractors of the covered contract.

Sec. 4307. Contractor certification

  (a) Content and Form.--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. The certification shall be in a form prescribed 
in the Federal Acquisition Regulation.
  (b) Waiver.--An executive agency may, in an exceptional case, waive 
the requirement for certification under subsection (a) in the case of a 
contract if the agency--
          (1) determines that it would be in the interest of the Federal 
        Government to waive the certification; and
          (2) states in writing the reasons for the determination and 
        makes the determination available to the public.

Sec. 4308. Penalties for submission of cost known to be unallowable

  The submission to an executive agency of a proposal for settlement of 
costs for any period after those costs have been accrued that includes a 
cost that is expressly specified by statute or regulation as being 
unallowable, with the knowledge that the cost is unallowable, is subject 
to section 287 of title 18 and section 3729 of title 31.

Sec. 4309. Burden of proof on contractor

  In a proceeding before a board of contract appeals, the United States 
Court of Federal Claims, or any other Federal court in which the 
reasonableness of indirect costs for which a contractor seeks 
reimbursement from the Federal Government is in issue,

[[Page 124 STAT. 3789]]

the burden of proof is on the contractor to establish that those costs 
are reasonable.

Sec. 4310. Proceeding costs not allowable

  (a) Definitions.--In this section:
          (1) Costs.--The term ``costs'', with respect to a proceeding, 
        means all costs incurred by a contractor, whether before or 
        after the commencement of the proceeding, including--
                  (A) administrative and clerical expenses;
                  (B) the cost of legal services, including legal 
                services performed by an employee of the contractor;
                  (C) the cost of the services of accountants and 
                consultants retained by the contractor; and
                  (D) the pay of directors, officers, and employees of 
                the contractor for time devoted by those directors, 
                officers, and employees to the proceeding.
          (2) Penalty.--The term ``penalty'' does not include 
        restitution, reimbursement, or compensatory damages.
          (3) Proceeding.--The term ``proceeding'' includes an 
        investigation.

  (b) In General.--Except as otherwise provided in this section, costs 
incurred by a contractor in connection with a criminal, civil, or 
administrative proceeding commenced by the Federal Government or a State 
are not allowable as reimbursable costs under a covered contract if the 
proceeding--
          (1) relates to a violation of, or failure to comply with, a 
        Federal or State statute or regulation; and
          (2) results in a disposition described in subsection (c).

  (c) Covered Dispositions.--A disposition referred to in subsection 
(b)(2) is any of the following:
          (1) In 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 subsection (b).
          (2) In a civil or administrative proceeding involving an 
        allegation of fraud or similar misconduct, a determination of 
        contractor liability on the basis of the violation or failure 
        referred to in subsection (b).
          (3) In any civil or administrative proceeding, the imposition 
        of a monetary penalty by reason of the violation or failure 
        referred to in subsection (b).
          (4) A final decision to do any of the following, by reason of 
        the violation or failure referred to in subsection (b):
                  (A) Debar or suspend the contractor.
                  (B) Rescind or void the contract.
                  (C) Terminate the contract for default.
          (5) A disposition of the proceeding by consent or compromise 
        if the disposition could have resulted in a disposition 
        described in paragraph (1), (2), (3), or (4).

  (d) Costs Allowed by Settlement Agreement in Proceeding Commenced by 
Federal Government.--In the case of a proceeding referred to in 
subsection (b) that is commenced by the Federal Government and is 
resolved by consent or compromise pursuant to an agreement entered into 
by a contractor and the Federal Government, the costs incurred by the 
contractor in connection with the proceeding that are otherwise not 
allowable as reimbursable costs under subsection (b) may be allowed to 
the extent specifically provided in that agreement.

[[Page 124 STAT. 3790]]

  (e) Costs Specifically Authorized by Executive Agency in Proceeding 
Commenced by State.--In the case of a proceeding referred to in 
subsection (b) 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 the proceeding as 
reimbursable costs if the executive agency determines, in accordance 
with the Federal Acquisition Regulation, that the costs were incurred as 
a result of--
          (1) a specific term or condition of the contract; or
          (2) specific written instructions of the executive agency.

  (f) Other Allowable Costs.--
          (1) In general.--Except as provided in paragraph (3), costs 
        incurred by a contractor in connection with a criminal, civil, 
        or administrative proceeding commenced by the Federal Government 
        or a State in connection with a covered contract may be allowed 
        as reimbursable costs under the contract if the costs are not 
        disallowable under subsection (b), but only to the extent 
        provided in paragraph (2).
          (2) Amount of allowable costs.--
                  (A) Maximum amount allowed.--The amount of the costs 
                allowable under paragraph (1) in any case may not exceed 
                the amount equal to 80 percent of the amount of the 
                costs incurred, to the extent that the costs are 
                determined to be otherwise allowable and allocable under 
                the Federal Acquisition Regulation.
                  (B) Content of regulations.--Regulations issued for 
                the purpose of subparagraph (A) 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 Federal Government as a party, and other 
                factors as may be appropriate.
          (3) When otherwise allowable costs are not allowable.--In the 
        case of a proceeding referred to in paragraph (1), contractor 
        costs otherwise allowable as reimbursable costs under this 
        subsection are not allowable if--
                  (A) the proceeding involves the same contractor 
                misconduct alleged as the basis of another criminal, 
                civil, or administrative proceeding; and
                  (B) the costs of the other proceeding are not 
                allowable under subsection (b).

                     CHAPTER 45--CONTRACT FINANCING

Sec.
4501.  Authority of executive agency.
4502.  Payment.
4503.  Security for advance payments.
4504.  Conditions for progress payments.
4505.  Payments for commercial items.
4506.  Action in case of fraud.

Sec. 4501. Authority of executive agency

  An executive agency may--
          (1) make advance, partial, progress or other payments under 
        contracts for property or services made by the agency; and
          (2) insert in solicitations for procurement of property or 
        services a provision limiting to small business concerns advance 
        or progress payments.

[[Page 124 STAT. 3791]]

Sec. 4502. Payment

  (a) Basis for Payment.--When practicable, payments under section 4501 
of this title shall be made on any of the following bases:
          (1) Performance measured by objective, quantifiable methods 
        such as delivery of acceptable items, work measurement, or 
        statistical process controls.
          (2) Accomplishment of events defined in the program management 
        plan.
          (3) Other quantifiable measures of results.

  (b) Payment Amount.--Payments made under section 4501 of this title 
may not exceed the unpaid contract price.

Sec. 4503. Security for advance payments

  Advance payments under section 4501 of this title may be made only on 
adequate security and a determination by the agency head that to do so 
would be in the public interest. The security may be in the form of a 
lien in favor of the Federal Government on the property contracted for, 
on the balance in an account in which the payments are deposited, and on 
such of the property acquired for performance of the contract as the 
parties may agree. This lien shall be paramount to all other liens and 
is effective immediately upon the first advancement of funds without 
filing, notice, or any other action by the Federal Government.

Sec. 4504. Conditions for progress payments

  (a) Payment Commensurate With Work.--The executive agency shall ensure 
that a payment for work in progress (including materials, labor, and 
other items) under a contract of an executive agency that provides for 
those payments is commensurate with the work accomplished that meets 
standards established under the contract. The contractor shall provide 
information and evidence the executive agency determines is necessary to 
permit the executive agency to carry out this subsection.
  (b) Limitation.--The executive agency shall ensure that progress 
payments referred to in subsection (a) are not made for more than 80 
percent of the work accomplished under the contract as long as the 
executive agency has not made the contractual terms, specifications, and 
price definite.
  (c) Application.--This section applies to a contract in an amount 
greater than $25,000.

Sec. 4505. Payments for commercial items

  (a) Terms and Conditions for Payments.--Payments under section 4501 of 
this title for commercial items may be made under terms and conditions 
that the head of the executive agency determines are appropriate or 
customary in the commercial marketplace and are in the best interests of 
the Federal Government.
  (b) Security for Payments.--The head of the executive agency shall 
obtain adequate security for the payments. If the security is in the 
form of a lien in favor of the Federal Government, the lien is paramount 
to all other liens and is effective immediately on the first payment, 
without filing, notice, or other action by the Federal Government.
  (c) Limitation on Advance Payments.--Advance payments made under 
section 4501 of this title for commercial items may include payments, in 
a total amount not more than 15 percent of the contract price, in 
advance of any performance of work under the contract.

[[Page 124 STAT. 3792]]

  (d) Nonapplication of Certain Conditions.--The conditions of sections 
4503 and 4504 of this title 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 this section.

Sec. 4506. Action in case of fraud

  (a) Definition.--In this section, the term ``remedy coordination 
official'', with respect to an executive agency, means the individual or 
entity in that executive agency who coordinates within that executive 
agency the administration of criminal, civil, administrative, and 
contractual remedies resulting from investigations of fraud or 
corruption related to procurement activities.
  (b) Recommendation To Reduce or Suspend Payments.--In any case in 
which the remedy coordination official of an executive agency finds that 
there is substantial evidence that the request of a contractor for 
advance, partial, or progress payment under a contract awarded by that 
executive agency is based on fraud, the remedy coordination official 
shall recommend that the executive agency reduce or suspend further 
payments to that contractor.
  (c) Reduction or Suspension of Payments.--The head of an executive 
agency receiving a recommendation under subsection (b) 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. On making an affirmative determination, the head of the executive 
agency may reduce or suspend further payments to the contractor under 
the contract.
  (d) Extent of Reduction or Suspension.--The extent of any reduction or 
suspension of payments by an executive agency under subsection (c) on 
the basis of fraud shall be reasonably commensurate with the anticipated 
loss to the Federal Government resulting from the fraud.
  (e) Written Justification.--A written justification for each decision 
of the head of an executive agency whether to reduce or suspend payments 
under subsection (c), and for each recommendation received by the 
executive agency in connection with the decision, shall be prepared and 
be retained in the files of the executive agency.
  (f) Notice.--The head of each executive agency shall prescribe 
procedures to ensure that, before the head of the executive agency 
decides to reduce or suspend payments in the case of a contractor under 
subsection (c), the contractor is afforded notice of the proposed 
reduction or suspension and an opportunity to submit matters to the 
executive agency in response to the proposed reduction or suspension.
  (g) Review.--Not later than 180 days after the date on which the head 
of an executive agency reduces or suspends payments to a contractor 
under subsection (c), the remedy coordination official of the executive 
agency shall--
          (1) review the determination of fraud on which the reduction 
        or suspension is based; and
          (2) transmit a recommendation to the head of the executive 
        agency whether the suspension or reduction should continue.

  (h) Report.--The head of each executive agency who receives 
recommendations made by the remedy coordination official of the 
executive agency to reduce or suspend payments under subsection (c) 
during a fiscal year shall prepare for that year a report that

[[Page 124 STAT. 3793]]

contains the recommendations, the actions taken on the recommendations 
and the reasons for those actions, and an assessment of the effects of 
those actions on the Federal Government. The report shall be available 
to any Member of Congress on request.
  (i) Restriction on Delegation.--The head of an executive agency may 
not delegate responsibilities under this section to an individual in a 
position below level IV of the Executive Schedule.

                        CHAPTER 47--MISCELLANEOUS

Sec.
4701.  Determinations and decisions.
4702.  Prohibition on release of contractor proposals.
4703.  Validation of proprietary data restrictions.
4704.  Prohibition of contractors limiting subcontractor sales directly 
           to Federal Government.
4705.  Protection of contractor employees from reprisal for disclosure 
           of certain information.
4706.  Examination of facilities and records of contractor.
4707.  Remission of liquidated damages.
4708.  Payment of reimbursable indirect costs in cost-type research and 
           development contracts with educational institutions.
4709.  Implementation of electronic commerce capability.
4710.  Limitations on tiering of subcontractors.
4711.  Linking of award and incentive fees to acquisition outcomes.

Sec. 4701. Determinations and decisions

  (a) Individual or Class Determinations and Decisions Authorized.--
          (1) In general.--Determinations and decisions required to be 
        made under this division by the head of an executive agency or 
        provided in this division or chapters 1 to 11 of title 40 to be 
        made by the Administrator of General Services or other agency 
        head may be made for an individual purchase or contract or, 
        except for determinations or decisions made under sections 3105, 
        3301, 3303 to 3305, 3306(a)-(e), and 3308, chapter 37, and 
        section 4702 of this title or to the extent expressly prohibited 
        by another law, for a class of purchases or contracts.
          (2) Delegation.--Except as provided in section 3304(a)(7) of 
        this title, and except as provided in section 121(d)(1) and (2) 
        of title 40 with respect to the Administrator of General 
        Services, the agency head, in the discretion and subject to the 
        direction of the agency head, may delegate powers provided by 
        this division or chapters 1 to 11 of title 40, including the 
        making of determinations and decisions described in paragraph 
        (1), to other officers or officials of the agency.
          (3) Finality.--The determinations and decisions are final.

  (b) Written Findings.--
          (1) Basis for certain determinations.--Each determination or 
        decision under section 3901, 3905, 4503, or 4706(d)(2)(B) of 
        this title shall be based on a written finding by the individual 
        making the determination or decision. A finding under section 
        4503 or 4706(d)(2)(B) shall set out facts and circumstances that 
        support the determination or decision.
          (2) Finality.--Each finding referred to in paragraph (1) is 
        final.
          (3) Maintaining copies of findings.--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 an individual in that executive agency. The period

[[Page 124 STAT. 3794]]

        begins on the date of the determination or decision to which the 
        finding relates.

Sec. 4702. Prohibition on release of contractor proposals

  (a) Definition.--In this section, the term ``proposal'' means a 
proposal, including a technical, management, or cost proposal, submitted 
by a contractor in response to the requirements of a solicitation for a 
competitive proposal.
  (b) Prohibition.--A proposal in the possession or control of an 
executive agency may not be made available to any person under section 
552 of title 5.
  (c) Nonapplication.--Subsection (b) does not apply to a proposal that 
is set forth or incorporated by reference in a contract entered into 
between the agency and the contractor that submitted the proposal.

Sec. 4703. Validation of proprietary data restrictions

  (a) Contract That Provides for Delivery of Technical Data.--A contract 
for property or services entered into by an executive agency that 
provides for the delivery of technical data shall provide that--
          (1) a contractor or subcontractor at any tier shall be 
        prepared to furnish to the contracting officer a written 
        justification for any restriction the contractor or 
        subcontractor asserts on the right of the Federal Government to 
        use the data; and
          (2) the contracting officer may review the validity of a 
        restriction the contractor or subcontractor asserts under the 
        contract on the right of the Federal Government to use technical 
        data furnished to the Federal Government under the contract if 
        the contracting officer determines that reasonable grounds exist 
        to question the current validity of the asserted restriction and 
        that the continued adherence to the asserted restriction by the 
        Federal Government would make it impracticable to procure the 
        item competitively at a later time.

  (b) Challenge of Restriction.--If after a review the contracting 
officer determines that a challenge to the asserted restriction is 
warranted, the contracting officer shall provide written notice to the 
contractor or subcontractor asserting the restriction. The notice shall 
state--
          (1) the grounds for challenging the asserted restriction; and
          (2) the requirement for a response within 60 days justifying 
        the current validity of the asserted restriction.

  (c) Additional Time for Responses.--If a contractor or subcontractor 
asserting a restriction subject to this section submits to the 
contracting officer a written request showing the need for additional 
time to comply with the requirement to justify the current validity of 
the asserted restriction, the contracting officer shall provide 
appropriate additional time to adequately permit the justification to be 
submitted.
  (d) Multiple Challenges.--If a party asserting a restriction receives 
notices of challenges to restrictions on technical data from more than 
one contracting officer, and notifies each contracting officer of the 
existence of more than one challenge, the contracting officer initiating 
the earliest challenge, after consultation with the party asserting the 
restriction and the other contracting officers, shall formulate a 
schedule of responses to each of the challenges that will afford the 
party asserting the restriction with an equitable opportunity to respond 
to each challenge.

[[Page 124 STAT. 3795]]

  (e) Decision on Validity of Asserted Restriction.--
          (1) No response submitted.--The contracting officer shall 
        issue a decision pertaining to the validity of the asserted 
        restriction if the contractor or subcontractor does not submit a 
        response under subsection (b).
          (2) Response submitted.--Within 60 days of receipt of a 
        justification submitted in response to the notice provided 
        pursuant to subsection (b), a contracting officer shall issue a 
        decision or notify the party asserting the restriction of the 
        time within which a decision will be issued.

  (f) Claim Deemed Claim Within Chapter 71.--A claim pertaining to the 
validity of the asserted restriction that is submitted in writing to a 
contracting officer by a contractor or subcontractor at any tier is 
deemed to be a claim within the meaning of chapter 71 of this title.
  (g) Final Disposition of Challenge.--
          (1) Challenge is sustained.--If the contracting officer's 
        challenge to the restriction on the right of the Federal 
        Government to use technical data is sustained on final 
        disposition--
                  (A) the restriction is cancelled; and
                  (B) if the asserted restriction is found not to be 
                substantially justified, the contractor or 
                subcontractor, as appropriate, is liable to the Federal 
                Government for payment of the cost to the Federal 
                Government of reviewing the asserted restriction and the 
                fees and other expenses (as defined in section 
                2412(d)(2)(A) of title 28) incurred by the Federal 
                Government in challenging the asserted restriction, 
                unless special circumstances would make the payment 
                unjust.
          (2) Challenge not sustained.--If the contracting officer's 
        challenge to the restriction on the right of the Federal 
        Government to use technical data is not sustained on final 
        disposition, the Federal Government--
                  (A) continues to be bound by the restriction; and
                  (B) is liable for payment to the party asserting the 
                restriction for fees and other expenses (as defined in 
                section 2412(d)(2)(A) of title 28) incurred by the party 
                asserting the restriction in defending the asserted 
                restriction if the challenge by the Federal Government 
                is found not to be made in good faith.

Sec. 4704. Prohibition of contractors limiting subcontractor sales 
                        directly to Federal Government

  (a) Contract Restrictions.--Each contract for the purchase of property 
or services made by an executive agency shall provide that the 
contractor will not--
          (1) enter into an agreement with a subcontractor under the 
        contract that has the effect of unreasonably restricting sales 
        by the subcontractor directly to the Federal Government of any 
        item or process (including computer software) made or furnished 
        by the subcontractor under the contract (or any follow-on 
        production contract); or
          (2) otherwise act to restrict unreasonably the ability of a 
        subcontractor to make sales described in paragraph (1) to the 
        Federal Government.

  (b) Rights Under Law Preserved.--This section does not prohibit a 
contractor from asserting rights it otherwise has under law.

[[Page 124 STAT. 3796]]

  (c) Inapplicability to Certain Contracts.--This section does not apply 
to a contract for an amount that is not greater than the simplified 
acquisition threshold.
  (d) Inapplicability When Government Treated Similarly to Other 
Purchasers.--An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under the contract 
that restricts sales by the subcontractor directly to persons other than 
the contractor may not be considered to unreasonably restrict sales by 
that subcontractor to the Federal Government in violation of the 
provision included in the contract pursuant to subsection (a) if the 
agreement does not result in the Federal Government being treated 
differently with regard to the restriction than any other prospective 
purchaser of the commercial items from that subcontractor.

Sec. 4705. Protection of contractor employees from reprisal for 
                        disclosure of certain information

  (a) Definitions.--In this section:
          (1) Contract.--The term ``contract'' means a contract awarded 
        by the head of an executive agency.
          (2) Contractor.--The term ``contractor'' means a person 
        awarded a contract with an executive agency.
          (3) Inspector general.--The term ``Inspector General'' means 
        an Inspector General appointed under the Inspector General Act 
        of 1978 (5 U.S.C. App.).

  (b) Prohibition of Reprisals.--An employee of a contractor may not be 
discharged, demoted, or otherwise discriminated against as a reprisal 
for disclosing to a Member of Congress or an authorized official of an 
executive agency or the Department of Justice information relating to a 
substantial violation of law related to a contract (including the 
competition for, or negotiation of, a contract).
  (c) Investigation of Complaints.--An individual who believes that the 
individual has been subjected to a reprisal prohibited by subsection (b) 
may submit a complaint to the Inspector General of the executive agency. 
Unless the Inspector General determines that the complaint is frivolous, 
the Inspector General shall investigate the complaint and, on completion 
of the investigation, submit a report of the findings of the 
investigation to the individual, the contractor concerned, and the head 
of the agency. If the executive agency does not have an Inspector 
General, the duties of the Inspector General under this section shall be 
performed by an official designated by the head of the executive agency.
  (d) Remedy and Enforcement Authority.--
          (1) Actions contractor may be ordered to take.--If the head of 
        an executive agency determines that a contractor has subjected 
        an individual to a reprisal prohibited by subsection (b), the 
        head of the executive agency may take one or more of the 
        following actions:
                  (A) Abatement.--Order the contractor to take 
                affirmative action to abate the reprisal.
                  (B) Reinstatement.--Order the contractor to reinstate 
                the individual to the position that the individual 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 individual in that position if the reprisal had not 
                been taken.
                  (C) Payment.--Order the contractor to pay the 
                complainant an amount equal to the aggregate amount of 
                all costs

[[Page 124 STAT. 3797]]

                and expenses (including attorneys' fees and expert 
                witnesses' fees) that the complainant reasonably 
                incurred for, or in connection with, bringing the 
                complaint regarding the reprisal, as determined by the 
                head of the executive agency.
          (2) Enforcement order.--When a contractor fails to comply with 
        an order issued under paragraph (1), the head of the executive 
        agency shall file an action for enforcement of the order in the 
        United States district court for a district in which the 
        reprisal was found to have occurred. In an action brought under 
        this paragraph, the court may grant appropriate relief, 
        including injunctive relief and compensatory and exemplary 
        damages.
          (3) Review of enforcement order.--A person adversely affected 
        or aggrieved by an order issued under paragraph (1) may obtain 
        review of the order's conformance with this subsection, and 
        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. A petition seeking review 
        must be filed no more than 60 days after the head of the agency 
        issues the order. Review shall conform to chapter 7 of title 5.

  (e) Scope of Section.--This section does not--
          (1) authorize the discharge of, demotion of, or discrimination 
        against an employee for a disclosure other than a disclosure 
        protected by subsection (b); or
          (2) modify or derogate from a right or remedy otherwise 
        available to the employee.

Sec. 4706. Examination of facilities and records of contractor

  (a) Definition.--In this section, the term ``records'' includes books, 
documents, accounting procedures and practices, and other data, 
regardless of type and regardless of whether the items are in written 
form, in the form of computer data, or in any other form.
  (b) Agency Authority.--
          (1) Inspection of plant and audit of records.--The head of an 
        executive agency, acting through an authorized representative, 
        may inspect the plant and audit the records of--
                  (A) a contractor performing a cost-reimbursement, 
                incentive, time-and-materials, labor-hour, or price-
                redeterminable contract, or any combination of those 
                contracts, the executive agency makes under this 
                division; and
                  (B) a subcontractor performing a cost-reimbursement, 
                incentive, time-and-materials, labor-hour, or price-
                redeterminable subcontract, or any combination of those 
                subcontracts, under a contract referred to in 
                subparagraph (A).
          (2) Examination of records.--The head of an executive agency, 
        acting through an authorized representative, may, for the 
        purpose of evaluating the accuracy, completeness, and currency 
        of certified cost or pricing data required to be submitted 
        pursuant to chapter 35 of this title with respect to a contract 
        or subcontract, 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

[[Page 124 STAT. 3798]]

                  (D) performance of the contract or subcontract.

  (c) Subpoena Power.--
          (1) Authority to require the production of records.--The 
        Inspector General of an executive agency appointed under section 
        3 or 8G of the Inspector General Act of 1978 (5 U.S.C. App.) or, 
        on request of the head of an executive agency, the Director of 
        the Defense Contract Audit Agency (or any successor agency) of 
        the Department of Defense or the Inspector General of the 
        General Services Administration may require by subpoena the 
        production of records of a contractor, access to which is 
        provided for that executive agency by subsection (b).
          (2) Enforcement of subpoena.--A subpoena under paragraph (1), 
        in the case of contumacy or refusal to obey, is enforceable by 
        order of an appropriate United States district court.
          (3) Authority not delegable.--The authority provided by 
        paragraph (1) may not be delegated.
          (4) Report.--In the year following a year in which authority 
        provided in paragraph (1) is exercised for an executive agency, 
        the head of the executive agency shall submit to the Committee 
        on Homeland Security and Governmental Affairs of the Senate and 
        the Committee on Oversight and Government Reform of the House of 
        Representatives a report on the exercise of the authority during 
        the preceding year and the reasons why the authority was 
        exercised in any instance.

  (d) Authority of Comptroller General.--
          (1) In general.--Except as provided in paragraph (2), each 
        contract awarded after using procedures other than sealed bid 
        procedures shall provide that the Comptroller General and 
        representatives of the Comptroller General may examine records 
        of the contractor, or any of its subcontractors, that directly 
        pertain to, and involve transactions relating to, the contract 
        or subcontract and to interview any current employee regarding 
        the transactions.
          (2) Exception for foreign contractor or subcontractor.--
        Paragraph (1) does not apply to a contract or subcontract with a 
        foreign contractor or foreign subcontractor if the executive 
        agency concerned determines, with the concurrence of the 
        Comptroller General or the designee of the Comptroller General, 
        that applying paragraph (1) to the contract or subcontract would 
        not be in the public interest. The concurrence of the 
        Comptroller General or the designee is not required when--
                  (A) the contractor or subcontractor is--
                        (i) the government of a foreign country or an 
                      agency of that government; or
                        (ii) precluded by the laws of the country 
                      involved from making its records available for 
                      examination; and
                  (B) the executive agency determines, after taking into 
                account the price and availability of the property and 
                services from United States sources, that the public 
                interest would be best served by not applying paragraph 
                (1).
          (3) Additional records not required.--Paragraph (1) does not 
        require a contractor or subcontractor to create or maintain a 
        record that the contractor or subcontractor does not maintain in 
        the ordinary course of business or pursuant to another law.

[[Page 124 STAT. 3799]]

  (e) Limitation on Audits Relating to Indirect Costs.--An executive 
agency may not perform an audit of indirect costs under a contract, 
subcontract, or modification before or after entering into the contract, 
subcontract, or modification when the contracting officer determines 
that the objectives of the audit can reasonably be met by accepting the 
results of an audit that was conducted by another department or agency 
of the Federal Government within one year preceding the date of the 
contracting officer's determination.
  (f) Expiration of Authority.--The authority of an executive agency 
under subsection (b) and the authority of the Comptroller General under 
subsection (d) shall expire 3 years after final payment under the 
contract or subcontract.
  (g) 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.
          (2) A contract or subcontract that is not greater than the 
        simplified acquisition threshold.

  (h) Electronic Form Allowed.--This section does not preclude a 
contractor from duplicating or storing original records in electronic 
form.
  (i) Original Records Not Required.--An executive agency shall not 
require a contractor or subcontractor to provide original records in an 
audit carried out pursuant to this section if the contractor or 
subcontractor provides photographic or electronic images of the original 
records and meets the following requirements:
          (1) Preservation procedures established.--The contractor or 
        subcontractor has established procedures to ensure that the 
        imaging process preserves the integrity, reliability, and 
        security of the original records.
          (2) Indexing system maintained.--The contractor or 
        subcontractor maintains an effective indexing system to permit 
        timely and convenient access to the imaged records.
          (3) Original records retained.--The contractor or 
        subcontractor retains the original records for a minimum of one 
        year after imaging to permit periodic validation of the imaging 
        systems.

Sec. 4707. Remission of liquidated damages

  When a contract made on behalf of the Federal Government by the head 
of a Federal agency, or by an authorized officer of the agency, includes 
a provision for liquidated damages for delay, the Secretary of the 
Treasury on recommendation of the head of the agency may remit any part 
of the damages as the Secretary of the Treasury believes is just and 
equitable.

Sec. 4708. Payment of reimbursable indirect costs in cost-type research 
                        and development contracts with educational 
                        institutions

  A cost-type research and development contract (including a grant) with 
a university, college, or other educational institution may provide for 
payment of reimbursable indirect costs on the basis of predetermined 
fixed-percentage rates applied to the total of the reimbursable direct 
costs incurred or to an element of the total of the reimbursable direct 
costs incurred.

[[Page 124 STAT. 3800]]

Sec. 4709. Implementation of electronic commerce capability

  (a) Role of Head of Executive Agency.--The head of each executive 
agency shall implement the electronic commerce capability required by 
section 2301 of this title. In implementing the capability, the head of 
an executive agency shall consult with the Administrator.
  (b) Program Manager.--The head of each executive agency shall 
designate a program manager to implement the electronic commerce 
capability for the agency. The program manager reports directly to an 
official at a level not lower than the senior procurement executive 
designated for the agency under section 1702(c) of this title.

Sec. 4710. Limitations on tiering of subcontractors

  (a) Definition.--In this section, the term ``executive agency'' has 
the same meaning given in section 133 of this title.
  (b) Regulations.--For executive agencies other than the Department of 
Defense, the Federal Acquisition Regulation shall--
          (1) require contractors to minimize the excessive use of 
        subcontractors, or of tiers of subcontractors, that add no or 
        negligible value; and
          (2) ensure that neither a contractor nor a subcontractor 
        receives indirect costs or profit on work performed by a lower-
        tier subcontractor to which the higher-tier contractor or 
        subcontractor adds no or negligible value (but not to limit 
        charges for indirect costs and profit based on the direct costs 
        of managing lower-tier subcontracts).

  (c) Covered Contracts.--This section applies to any cost-reimbursement 
type contract or task or delivery order in an amount greater than the 
simplified acquisition threshold (as defined by section 134 of this 
title).
  (d) Rule of Construction.--Nothing in this section shall be construed 
as limiting the ability of the Department of Defense to implement more 
restrictive limitations on the tiering of subcontractors.
  (e) Applicability.--The Department of Defense shall continue to be 
subject to guidance on limitations on tiering of subcontractors issued 
by the Department of Defense pursuant to section 852 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
364, 10 U.S.C. 2324 note).

Sec. 4711. Linking of award and incentive fees to acquisition outcomes

  (a) Definition.--In this section, the term ``executive agency'' has 
the same meaning given in section 133 of this title.
  (b) Guidance for Executive Agencies on Linking of Award and Incentive 
Fees to Acquisition Outcomes.--The Federal Acquisition Regulation shall 
provide executive agencies other than the Department of Defense with 
instructions, including definitions, on the appropriate use of award and 
incentive fees in Federal acquisition programs.
  (c) Elements.--The regulations under subsection (b) shall--
          (1) ensure that all new contracts using award fees link the 
        fees to acquisition outcomes (which shall be defined in terms of 
        program cost, schedule, and performance);

[[Page 124 STAT. 3801]]

          (2) establish standards for identifying the appropriate level 
        of officials authorized to approve the use of award and 
        incentive fees in new contracts;
          (3) provide guidance on the circumstances in which contractor 
        performance may be judged to be ``excellent'' or ``superior'' 
        and the percentage of the available award fee which contractors 
        should be paid for the performance;
          (4) establish standards for determining the percentage of the 
        available award fee, if any, which contractors should be paid 
        for performance that is judged to be ``acceptable'', 
        ``average'', ``expected'', ``good'', or ``satisfactory'';
          (5) ensure that no award fee may be paid for contractor 
        performance that is judged to be below satisfactory performance 
        or performance that does not meet the basic requirements of the 
        contract;
          (6) provide specific direction on the circumstances, if any, 
        in which it may be appropriate to roll over award fees that are 
        not earned in one award fee period to a subsequent award fee 
        period or periods;
          (7) ensure consistent use of guidelines and definitions 
        relating to award and incentive fees across the Federal 
        Government;
          (8) ensure that each executive agency--
                  (A) collects relevant data on award and incentive fees 
                paid to contractors; and
                  (B) has mechanisms in place to evaluate the data on a 
                regular basis;
          (9) include performance measures to evaluate the effectiveness 
        of award and incentive fees as a tool for improving contractor 
        performance and achieving desired program outcomes; and
          (10) provide mechanisms for sharing proven incentive 
        strategies for the acquisition of different types of products 
        and services among contracting and program management officials.

  (d) Guidance for Department of Defense.--The Department of Defense 
shall continue to be subject to guidance on award and incentive fees 
issued by the Secretary of Defense pursuant to section 814 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364, 10 U.S.C. 2302 note).

         Subtitle II--Other Advertising and Contract Provisions

Chapter                                                             Sec.
            Advertising                                             6101
            General Contract Provisions                             6301
            Contracts for Materials, Supplies, Articles, and        6501
                Equipment Exceeding $10,000
            Service Contract Labor Standards                        6701

                         CHAPTER 61--ADVERTISING

Sec.
6101.  Advertising requirement for Federal Government purchases and 
           sales.
6102.  Exceptions from advertising requirement.
6103.  Opening of bids.

Sec. 6101. Advertising requirement for Federal Government purchases and 
                        sales

  (a) Definitions.--In this section--

[[Page 124 STAT. 3802]]

          (1) Appropriation.--The term ``appropriation'' includes 
        amounts made available by legislation under section 9104 of 
        title 31.
          (2) Federal government.--The term ``Federal Government'' 
        includes the government of the District of Columbia.

  (b) Purchases.--
          (1) In general.--Unless otherwise provided in the 
        appropriation concerned or other law, purchases and contracts 
        for supplies or services for the Federal Government may be made 
        or entered into only after advertising for proposals for a 
        sufficient time.
          (2) Limitations on applicability.--Paragraph (1) does not 
        apply when--
                  (A) the amount involved in any one case does not 
                exceed $25,000;
                  (B) public exigencies require the immediate delivery 
                of articles or performance of services;
                  (C) only one source of supply is available and the 
                Federal Government purchasing or contracting officer so 
                certifies; or
                  (D) services are required to be performed by a 
                contractor in person and are--
                        (i) of a technical and professional nature; or
                        (ii) under Federal Government supervision and 
                      paid for on a time basis.

  (c) Sales.--Except when otherwise authorized by law or when the 
reasonable value involved in any one case does not exceed $500, sales 
and contracts of sale by the Federal Government are governed by the 
requirements of this section for advertising.
  (d) Application to Wholly Owned Government Corporations.--For wholly 
owned Government corporations, this section applies only to 
administrative transactions.

Sec. 6102. Exceptions from advertising requirement

  (a) American Battle Monuments Commission.--Section 6101 of this title 
does not apply to the American Battle Monuments Commission with respect 
to leases in foreign countries for office or garage space.
  (b) Bureau of Interparliamentary Union for Promotion of International 
Arbitration.--Section 6101 of this title does not apply to the Bureau of 
Interparliamentary Union for Promotion of International Arbitration with 
respect to necessary stenographic reporting services by contract.
  (c) Department of State.--Section 6101 of this title does not apply to 
the Department of State when the purchase or service relates to the 
packing of personal and household effects of Diplomatic, Consular, and 
Foreign Service officers and clerks for foreign shipment.
  (d) International Committee of Aerial Legal Experts.--Section 6101 of 
this title does not apply to the International Committee of Aerial Legal 
Experts with respect to necessary stenographic and other services by 
contract.
  (e) Architect of the Capitol.--The purchase of supplies and equipment 
and the procurement of services for all branches under the Architect of 
the Capitol may be made in the open market according to common business 
practice, without compliance with section 6101 of this title, when the 
aggregate amount of the purchase or the service does not exceed $25,000 
in any instance.

[[Page 124 STAT. 3803]]

  (f) Forest Products From Indian Reservations.--Lumber and other forest 
products produced by Indian enterprises from forests on Indian 
reservations may be sold under regulations the Secretary of the Interior 
prescribes, without compliance with section 6101 of this title.
  (g) House of Representatives.--Section 6101 of this title does not 
apply to purchases and contracts for supplies or services for any office 
of the House of Representatives.
  (h) Congressional Budget Office.--The Director of the Congressional 
Budget Office may enter into agreements or contracts without regard to 
section 6101 of this title.

Sec. 6103. Opening of bids

  Whenever proposals for supplies have been solicited, the parties 
responding to the solicitation shall be notified of the time and place 
of the opening of the bids, and be permitted to be present either in 
person or by attorney. A record of each bid shall be made at the time 
and place of the opening of the bids.

                 CHAPTER 63--GENERAL CONTRACT PROVISIONS

Sec.
6301.  Authorization requirement.
6302.  Contracts for fuel made by Secretary of the Army.
6303.  Certain contracts limited to appropriated amounts.
6304.  Certain contracts limited to one-year term.
6305.  Prohibition on transfer of contract and certain allowable 
           assignments.
6306.  Prohibition on Members of Congress making contracts with Federal 
           Government.
6307.  Contracts with Federal Government-owned establishments and 
           availability of appropriations.
6308.  Contracts for transportation of Federal Government securities.
6309.  Honorable discharge certificate in lieu of birth certificate.

Sec. 6301. Authorization requirement

  (a) In General.--A contract or purchase on behalf of the Federal 
Government shall not be made unless the contract or purchase is 
authorized by law or is under an appropriation adequate to its 
fulfillment.
  (b) Exception.--
          (1) Definition.--In this subsection, the term ``defined 
        Secretary'' means--
                  (A) the Secretary of Defense; or
                  (B) the Secretary of Homeland Security with respect to 
                the Coast Guard when the Coast Guard is not operating as 
                a service in the Navy.
          (2) In general.--Subsection (a) does not apply to a contract 
        or purchase made by a defined Secretary for clothing, 
        subsistence, forage, fuel, quarters, transportation, or medical 
        and hospital supplies.
          (3) Current year limitation.--A contract or purchase made by a 
        defined Secretary under this subsection may not exceed the 
        necessities of the current year.
          (4) Reports.--The defined Secretary shall immediately advise 
        Congress when authority is exercised under this subsection. The 
        defined Secretary shall report quarterly on the estimated 
        obligations incurred pursuant to the authority granted in this 
        subsection.

  (c) Special Rule for Purchase of Land.--Land may not be purchased by 
the Federal Government unless the purchase is authorized by law.

[[Page 124 STAT. 3804]]

Sec. 6302. Contracts for fuel made by Secretary of the Army

  The Secretary of the Army, when the Secretary believes it is in the 
interest of the United States, may enter into contracts and incur 
obligations for fuel in sufficient quantities to meet the requirements 
for one year without regard to the current fiscal year. Amounts 
appropriated for the fiscal year in which the contract is made or 
amounts appropriated or which may be appropriated for the following 
fiscal year may be used to pay for supplies delivered under a contract 
made pursuant to this section.

Sec. 6303. Certain contracts limited to appropriated amounts

  A contract to erect, repair, or furnish a public building, or to make 
any public improvement, shall not be made on terms requiring the Federal 
Government to pay more than the amount specifically appropriated for the 
activity covered by the contract.

Sec. 6304. Certain contracts limited to one-year term

  Except as otherwise provided, an executive department shall not make a 
contract for stationery or other supplies for a term longer than one 
year from the time the contract is made.

Sec. 6305. Prohibition on transfer of contract and certain allowable 
                        assignments

  (a) General Prohibition on Transfer of Contracts.--The party to whom 
the Federal Government gives a contract or order may not transfer the 
contract or order, or any interest in the contract or order, to another 
party. A purported transfer in violation of this subsection annuls the 
contract or order so far as the Federal Government is concerned, except 
that all rights of action for breach of contract are reserved to the 
Federal Government.
  (b) Assignment.--
          (1) In general.--Notwithstanding subsection (a) and in 
        accordance with the requirements of this subsection, amounts due 
        from the Federal Government under a contract may be assigned to 
        a bank, trust company, Federal lending agency, or other 
        financing institution.
          (2) Minimum amount.--This subsection applies only to a 
        contract under which the aggregate amounts due from the Federal 
        Government total at least $1,000.
          (3) Accord with contract terms.--Assignment may not be made 
        under this subsection if the contract forbids the assignment.
          (4) Full balance due.--Unless otherwise expressly permitted by 
        the contract, an assignment under this subsection must cover the 
        balance of all amounts due from the Federal Government under the 
        contract.
          (5) Single assignment.--Unless otherwise expressly permitted 
        by the contract, an assignment under this subsection may not be 
        made to more than one party or be subject to further assignment, 
        except that assignment may be made to one party as agent or 
        trustee for 2 or more parties participating in the financing.
          (6) Written notice.--The assignee of an assignment under this 
        subsection shall file written notice of the assignment and a 
        true copy of the instrument of assignment with--
                  (A) the contracting officer or head of the officer's 
                department or agency;

[[Page 124 STAT. 3805]]

                  (B) the surety on any bond connected with the 
                contract; and
                  (C) the disbursing officer, if any, designated in the 
                contract to make payment.
          (7) Validity.--Notwithstanding any law to the contrary 
        governing the validity of assignments, an assignment under this 
        subsection is a valid assignment for all purposes.
          (8) No refund to cover assignor's liability.--The assignee of 
        an assignment under this subsection is not liable to make any 
        refund to the Federal Government because of an assignor's 
        liability to the Federal Government, whether that liability 
        arises from the contract or independently.
          (9) Avoiding reduction or setoff with certain contracts.--
                  (A) Contract provision.--A contract of the Department 
                of Defense, the General Services Administration, the 
                Department of Energy, or another department or agency of 
                the Federal Government designated by the President may, 
                on a determination of need by the President, provide or 
                be amended without consideration to provide that 
                payments made to an assignee under the contract are not 
                subject to reduction or setoff. Each determination of 
                need by the President under this subparagraph shall be 
                published in the Federal Register.
                  (B) Carrying out contract provision.--When a ``no 
                reduction or setoff'' provision as described in 
                subparagraph (A) is included in a contract, payments to 
                the assignee are not subject to reduction or setoff for 
                an assignor's liability arising--
                        (i) independently of the contract;
                        (ii) on account of renegotiation under a 
                      renegotiation statute or under a statutory 
                      renegotiation article in the contract;
                        (iii) on account of fines;
                        (iv) on account of penalties; or
                        (v) on account of taxes, social security 
                      contributions, or the withholding or non-
                      withholding of taxes or social security 
                      contributions, whether arising from or 
                      independently of the contract.
                  (C) Limitation.--Subparagraph (B)(iv) does not apply 
                to amounts which may be collected or withheld from the 
                assignor in accordance with or for failure to comply 
                with the terms of the contract.

Sec. 6306. Prohibition on Members of Congress making contracts with 
                        Federal Government

  (a) In General.--A Member of Congress may not enter into or benefit 
from a contract or agreement or any part of a contract or agreement with 
the Federal Government.
  (b) Exemptions.--
          (1) In general.--Subsection (a) does not apply to contracts 
        that the Secretary of Agriculture may enter into with farmers.
          (2) Certain acts.--Subsection (a) does not apply to a contract 
        entered into under--
                  (A) the Agricultural Adjustment Act (7 U.S.C. 601 et 
                seq.);
                  (B) the Farm Credit Act of 1971 (12 U.S.C. 2001 et 
                seq.); or

[[Page 124 STAT. 3806]]

                  (C) the Home Owners' Loan Act (12 U.S.C. 1461 et 
                seq.).
          (3) Public record.--An exemption under this subsection shall 
        be made a matter of public record.

Sec. 6307. Contracts with Federal Government-owned establishments and 
                        availability of appropriations

  An order or contract placed with a Federal Government-owned 
establishment for work, material, or the manufacture of material 
pertaining to an approved project is deemed to be an obligation in the 
same manner that a similar order or contract placed with a commercial 
manufacturer or private contractor is an obligation. Appropriations 
remain available to pay an obligation to a Federal Government-owned 
establishment just as appropriations remain available to pay an 
obligation to a commercial manufacturer or private contractor.

Sec. 6308. Contracts for transportation of Federal Government securities

  When practicable, a contract for transporting bullion, cash, or 
securities of the Federal Government shall be awarded to the lowest 
responsible bidder after notice to all parties with means of 
transportation.

Sec. 6309. Honorable discharge certificate in lieu of birth certificate

  (a) In General.--An employer described in subsection (b) may not deny 
employment, on account of failure to produce a birth certificate, to an 
individual who submits, in lieu of the birth certificate, an honorable 
discharge certificate (or certificate issued in lieu of an honorable 
discharge certificate) from the Army, Air Force, Navy, Marine Corps, or 
Coast Guard of the United States, unless the honorable discharge 
certificate shows on its face that the individual may have been an alien 
at the time of its issuance.
  (b) Employers to Which Section Applies.--An employer referred to in 
subsection (a) is an employer--
          (1) engaged in--
                  (A) the production, maintenance, or storage of arms, 
                armament, ammunition, implements of war, munitions, 
                machinery, tools, clothing, food, fuel, or any articles 
                or supplies, or parts or ingredients of any articles or 
                supplies; or
                  (B) the construction, reconstruction, repair, or 
                installation of a building, plant, structure, or 
                facility; and
          (2) engaged in the activity described in paragraph (1) under--
                  (A) a contract with the Federal Government; or
                  (B) any contract that the President, the Secretary of 
                the Army, the Secretary of the Air Force, the Secretary 
                of the Navy, or the Secretary of the Department in which 
                the Coast Guard is operating certifies to the employer 
                to be necessary to the national defense.

 CHAPTER 65--CONTRACTS FOR MATERIALS, SUPPLIES, ARTICLES, AND EQUIPMENT 
                            EXCEEDING $10,000

Sec.
6501.  Definitions.
6502.  Required contract terms.
6503.  Breach or violation of required contract terms.
6504.  Three-year prohibition on new contracts in case of breach or 
           violation.

[[Page 124 STAT. 3807]]

6505.  Exclusions.
6506.  Administrative provisions.
6507.  Hearing authority and procedures.
6508.  Authority to make exceptions.
6509.  Other procedures.
6510.  Manufacturers and regular dealers.
6511.  Effect on other law.

Sec. 6501. Definitions

  In this chapter--
          (1) Agency of the united states.--The term ``agency of the 
        United States'' means an executive department, independent 
        establishment, or other agency or instrumentality of the United 
        States, the District of Columbia, or a corporation in which all 
        stock is beneficially owned by the Federal Government.
          (2) Person.--The term ``person'' includes one or more 
        individuals, partnerships, associations, corporations, legal 
        representatives, trustees, trustees in cases under title 11, or 
        receivers.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Labor.

Sec. 6502. Required contract terms

  A contract made by an agency of the United States for the manufacture 
or furnishing of materials, supplies, articles, or equipment, in an 
amount exceeding $10,000, shall include the following representations 
and stipulations:
          (1) Minimum wages to be paid.--All individuals employed by the 
        contractor in the manufacture or furnishing of materials, 
        supplies, articles, or equipment under the contract will be 
        paid, without subsequent deduction or rebate on any account, not 
        less than the prevailing minimum wages, as determined by the 
        Secretary, for individuals employed in similar work or in the 
        particular or similar industries or groups of industries 
        currently operating in the locality in which the materials, 
        supplies, articles, or equipment are to be manufactured or 
        furnished under the contract, except that this paragraph applies 
        only to purchases or contracts relating to industries that have 
        been the subject matter of a determination by the Secretary.
          (2) Maximum number of hours to be worked in a week.--No 
        individual employed by the contractor in the manufacture or 
        furnishing of materials, supplies, articles, or equipment under 
        the contract shall be permitted to work in excess of 40 hours in 
        any one week, except that this paragraph does not apply to an 
        employer who has entered into an agreement with employees 
        pursuant to paragraph (1) or (2) of section 7(b) of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 207(b)(1) or (2)).
          (3) Ineligible employees.--No individual under 16 years of age 
        and no incarcerated individual will be employed by the 
        contractor in the manufacture or furnishing of materials, 
        supplies, articles, or equipment under the contract, except that 
        this section, or other law or executive order containing similar 
        prohibitions against the purchase of goods by the Federal 
        Government, does not apply to convict labor that satisfies the 
        conditions of section 1761(c) of title 18.
          (4) Standards of places and working conditions where contract 
        performed.--No part of the contract will be performed, and no 
        materials, supplies, articles, or equipment will be manufactured 
        or fabricated under the contract, in plants,

[[Page 124 STAT. 3808]]

        factories, buildings, or surroundings, or under working 
        conditions, that are unsanitary, hazardous, or dangerous to the 
        health and safety of employees engaged in the performance of the 
        contract. Compliance with the safety, sanitary, and factory 
        inspection laws of the State in which the work or part of the 
        work is to be performed is prima facie evidence of compliance 
        with this paragraph.

Sec. 6503. Breach or violation of required contract terms

  (a) Applicable Breach or Violation.--This section applies in case of 
breach or violation of a representation or stipulation included in a 
contract under section 6502 of this title.
  (b) Liquidated Damages.--In addition to damages for any other breach 
of the contract, the party responsible for a breach or violation 
described in subsection (a) is liable to the Federal Government for the 
following liquidated damages:
          (1) An amount equal to the sum of $10 per day for each 
        individual under 16 years of age and each incarcerated 
        individual knowingly employed in the performance of the 
        contract.
          (2) An amount equal to the sum of each underpayment of wages 
        due an employee engaged in the performance of the contract, 
        including any underpayments arising from deductions, rebates, or 
        refunds.

  (c) Cancellation and Alternative Completion.--In addition to the 
Federal Government being entitled to damages described in subsection 
(b), the agency of the United States that made the contract may cancel 
the contract and make open-market purchases or make other contracts for 
the completion of the original contract, charging any additional cost to 
the original contractor.
  (d) Recovery of Amounts Due.--An amount due the Federal Government 
because of a breach or violation described in subsection (a) may be 
withheld from any amounts owed the contractor under any contract under 
section 6502 of this title or may be recovered in a suit brought by the 
Attorney General.
  (e) Employee Reimbursement for Underpayment of Wages.--An amount 
withheld or recovered under subsection (d) that is based on an 
underpayment of wages as described in subsection (b)(2) shall be held in 
a special deposit account. On order of the Secretary, the amount shall 
be paid directly to the underpaid employee on whose account the amount 
was withheld or recovered. However, an employee's claim for payment 
under this subsection may be entertained only if made within one year 
from the date of actual notice to the contractor of the withholding or 
recovery.

Sec. 6504. Three-year prohibition on new contracts in case of breach or 
                        violation

  (a) Distribution of List.--The Comptroller General shall distribute to 
each agency of the United States a list containing the names of persons 
found by the Secretary to have breached or violated a representation or 
stipulation included in a contract under section 6502 of this title.
  (b) Three-Year Prohibition.--Unless the Secretary recommends 
otherwise, a contract described in section 6502 of this title may not be 
awarded to a person named on the list under subsection (a), or to a 
firm, corporation, partnership, or association in which the person has a 
controlling interest, until 3 years have elapsed from the date of the 
determination by the Secretary that a breach or violation occurred.

[[Page 124 STAT. 3809]]

Sec. 6505. Exclusions

  (a) Items Available in the Open Market.--This chapter does not apply 
to the purchase of materials, supplies, articles, or equipment that may 
usually be bought in the open market.
  (b) Perishables and Agricultural Products.--This chapter does not 
apply to any of the following:
          (1) Perishables, including dairy, livestock and nursery 
        products.
          (2) Agricultural or farm products processed for first sale by 
        the original producers.
          (3) Contracts made by the Secretary of Agriculture for the 
        purchase of agricultural commodities or products of agricultural 
        commodities.

  (c) Carriage of Freight or Personnel.--This chapter may not be 
construed to apply to--
          (1) the carriage of freight or personnel by vessel, airplane, 
        bus, truck, express, or railway line where published tariff 
        rates are in effect; or
          (2) common carriers subject to the Communications Act of 1934 
        (47 U.S.C. 151 et seq.).

Sec. 6506. Administrative provisions

  (a) In General.--The Secretary shall administer this chapter.
  (b) Regulations.--The Secretary may make, amend, and rescind 
regulations as necessary to carry out this chapter.
  (c) Use of Government Officers and Employees.--The Secretary shall use 
Federal officers and employees and, with a State's consent, State and 
local officers and employees as the Secretary finds necessary to assist 
in the administration of this chapter.
  (d) Appointments.--The Secretary shall appoint an administrative 
officer and attorneys, experts, and other employees from time to time as 
the Secretary finds necessary for the administration of this chapter. 
The appointments are subject to chapter 51 and subchapter III of chapter 
53 of title 5 and other law applicable to the employment and 
compensation of officers and employees of the Federal Government.
  (e) Investigations.--The Secretary, or an authorized representative of 
the Secretary, may make investigations and findings as provided in this 
chapter and may, in any part of the United States, prosecute an inquiry 
necessary to carry out this chapter.

Sec. 6507. Hearing authority and procedures

  (a) Record and Hearing Requirements for Wage Determinations.--A wage 
determination under section 6502(1) of this title shall be made on the 
record after opportunity for a hearing.
  (b) Authority To Hold Hearings.--The Secretary or an impartial 
representative designated by the Secretary may hold hearings when there 
is a complaint of breach or violation of a representation or stipulation 
included in a contract under section 6502 of this title. The Secretary 
may initiate hearings on the Secretary's own motion or on the 
application of a person affected by the ruling of an agency of the 
United States relating to a proposal or contract under this chapter.
  (c) Orders To Compel Testimony.--The Secretary or an impartial 
representative designated by the Secretary may issue orders requiring 
witnesses to attend hearings held under this section and to produce 
evidence and testify under oath. Witnesses shall be

[[Page 124 STAT. 3810]]

paid fees and mileage at the same rates as witnesses in courts of the 
United States.
  (d) Enforcement of Orders.--If a person refuses or fails to obey an 
order issued under subsection (c), the Secretary or an impartial 
representative designated by the Secretary may bring an action to 
enforce the order in a district court of the United States or in the 
district court of a territory or possession of the United States. A 
court has jurisdiction to enforce the order if the inquiry is being 
carried out within the court's judicial district or if the person is 
found or resides or transacts business within the court's judicial 
district. The court may issue an order requiring the person to obey the 
order issued under subsection (c), and the court may punish any further 
refusal or failure as contempt of court.
  (e) Findings of Fact.--After notice and a hearing, the Secretary or an 
impartial representative designated by the Secretary shall make findings 
of fact. The findings are conclusive for agencies of the United States. 
If supported by a preponderance of the evidence, the findings are 
conclusive in any court of the United States.
  (f) Decisions.--The Secretary or an impartial representative 
designated by the Secretary may make decisions, based on findings of 
fact, that are considered necessary to enforce this chapter.

Sec. 6508. Authority to make exceptions

  (a) Duty of the Secretary To Make Exceptions.--When the head of an 
agency of the United States makes a written finding that the inclusion 
of representations or stipulations under section 6502 of this title in a 
proposal or contract will seriously impair the conduct of Federal 
Government business, the Secretary shall make exceptions, in specific 
cases or otherwise, when justice or the public interest will be served.
  (b) Authority of the Secretary To Modify Existing Contracts.--When an 
agency of the United States and a contractor jointly recommend, the 
Secretary may modify the terms of an existing contract with respect to 
minimum wages and maximum hours of labor as the Secretary finds 
necessary and proper in the public interest or to prevent injustice and 
undue hardship.
  (c) Authority of the Secretary To Allow Limitations, Variations, 
Tolerances, and Exemptions.--The Secretary may provide reasonable 
limitations and may prescribe regulations to allow reasonable 
variations, tolerances, and exemptions in the application of this 
chapter to contractors, including with respect to minimum wages and 
maximum hours of labor.
  (d) Rate of Pay for Overtime.--When the Secretary permits an increase 
in the maximum hours of labor stipulated in a contract, the Secretary 
shall set a rate of pay for overtime. The overtime rate must be at least 
one and one-half times the basic hourly rate.
  (e) Authority of the President To Suspend.--The President may suspend 
any of the representations and stipulations contained in section 6502 of 
this title whenever, in the President's judgment, suspension is in the 
public interest.

Sec. 6509. Other procedures

  (a) Applicability of Certain Administrative Provisions.--
Notwithstanding section 553 of title 5, subchapter II of chapter 5 and 
chapter 7 of title 5 are applicable in the administration of sections 
6501 to 6507 and 6511 of this title.

[[Page 124 STAT. 3811]]

  (b) Judicial Review in General.--Notwithstanding the inclusion of 
representations and stipulations in a contract under section 6502 of 
this title, an interested person has the right of judicial review of any 
legal question which might otherwise be raised, including wage 
determinations and the interpretation of the terms ``locality'' and 
``open market''.
  (c) Judicial Review of Wage Determinations.--A person adversely 
affected or aggrieved by a wage determination under section 6502(1) of 
this title has the right of judicial review of the determination, or of 
the applicability of the determination, within 90 days after the 
determination is made, in the manner provided by chapter 7 of title 5. A 
person adversely affected or aggrieved by a wage determination is deemed 
to include a person in an industry to which the determination applies 
that is a supplier of materials, supplies, articles, or equipment that 
are purchased or intended to be purchased by the Federal Government from 
any source.

Sec. 6510. Manufacturers and regular dealers

  (a) Prescribing Standards.--The Secretary may prescribe, in 
regulations, standards for determining whether a contractor is a 
manufacturer or regular dealer with respect to materials, supplies, 
articles, or equipment to be manufactured or furnished under, or used in 
the performance of, a contract entered into by an agency of the United 
States.
  (b) Judicial Review.--An interested person has the right of judicial 
review of any legal question relating to interpretation of the terms 
``regular dealer'' and ``manufacturer'' as defined pursuant to 
subsection (a).

Sec. 6511. Effect on other law

  This chapter may not be construed to modify or amend the following 
provisions:
          (1) Chapter 83 of this title.
          (2) Sections 3141 to 3144, 3146, and 3147 of title 40.
          (3) Chapter 307 of title 18.

              CHAPTER 67--SERVICE CONTRACT LABOR STANDARDS

Sec.
6701.  Definitions.
6702.  Contracts to which this chapter applies.
6703.  Required contract terms.
6704.  Limitation on minimum wage.
6705.  Violations.
6706.  Three-year prohibition on new contracts in case of violation.
6707.  Enforcement and administration of chapter.

Sec. 6701. Definitions

  In this chapter:
          (1) Compensation.--The term ``compensation'' means any of the 
        payments or fringe benefits described in section 6703 of this 
        title.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Labor.
          (3) Service employee.--The term ``service employee''--
                  (A) means an individual engaged in the performance of 
                a contract made by the Federal Government and not

[[Page 124 STAT. 3812]]

                exempted under section 6702(b) of this title, whether 
                negotiated or advertised, the principal purpose of which 
                is to furnish services in the United States;
                  (B) includes an individual without regard to any 
                contractual relationship alleged to exist between the 
                individual and a contractor or subcontractor; but
                  (C) does not include an individual employed in a bona 
                fide executive, administrative, or professional 
                capacity, as those terms are defined in part 541 of 
                title 29, Code of Federal Regulations.
          (4) United states.--The term ``United States''--
                  (A) includes any State of the United States, the 
                District of Columbia, Puerto Rico, the Virgin Islands, 
                the outer Continental Shelf as defined in the Outer 
                Continental Shelf Lands Act (43 U.S.C. Sec. 1331 et 
                seq.), American Samoa, Guam, Wake Island, and Johnston 
                Island; but
                  (B) does not include any other territory under the 
                jurisdiction of the United States or any United States 
                base or possession within a foreign country.

Sec. 6702. Contracts to which this chapter applies

  (a) In General.--Except as provided in subsection (b), this chapter 
applies to any contract or bid specification for a contract, whether 
negotiated or advertised, that--
          (1) is made by the Federal Government or the District of 
        Columbia;
          (2) involves an amount exceeding $2,500; and
          (3) has as its principal purpose the furnishing of services in 
        the United States through the use of service employees.

  (b) Exemptions.--This chapter does not apply to--
          (1) a contract of the Federal Government or the District of 
        Columbia for the construction, alteration, or repair, including 
        painting and decorating, of public buildings or public works;
          (2) any work required to be done in accordance with chapter 65 
        of this title;
          (3) a contract for the carriage of freight or personnel by 
        vessel, airplane, bus, truck, express, railway line or oil or 
        gas pipeline where published tariff rates are in effect;
          (4) a contract for the furnishing of services by radio, 
        telephone, telegraph, or cable companies, subject to the 
        Communications Act of 1934 (47 U.S.C. 151 et seq.);
          (5) a contract for public utility services, including electric 
        light and power, water, steam, and gas;
          (6) an employment contract providing for direct services to a 
        Federal agency by an individual; and
          (7) a contract with the United States Postal Service, the 
        principal purpose of which is the operation of postal contract 
        stations.

Sec. 6703. Required contract terms

  A contract, and bid specification for a contract, to which this 
chapter applies under section 6702 of this title shall contain the 
following terms:
          (1) Minimum wage.--The contract and bid specification shall 
        contain a provision specifying the minimum wage to be paid to 
        each class of service employee engaged in the performance

[[Page 124 STAT. 3813]]

        of the contract or any subcontract, as determined by the 
        Secretary or the Secretary's authorized representative, in 
        accordance with prevailing rates in the locality, or, where a 
        collective-bargaining agreement covers the service employees, in 
        accordance with the rates provided for in the agreement, 
        including prospective wage increases provided for in the 
        agreement as a result of arm's length negotiations. In any case 
        the minimum wage may not be less than the minimum wage specified 
        in section 6704 of this title.
          (2) Fringe benefits.--The contract and bid specification shall 
        contain a provision specifying the fringe benefits to be 
        provided to each class of service employee engaged in the 
        performance of the contract or any subcontract, as determined by 
        the Secretary or the Secretary's authorized representative to be 
        prevailing in the locality, or, where a collective-bargaining 
        agreement covers the service employees, to be provided for under 
        the agreement, including prospective fringe benefit increases 
        provided for in the agreement as a result of arm's-length 
        negotiations. The fringe benefits shall include medical or 
        hospital care, pensions on retirement or death, compensation for 
        injuries or illness resulting from occupational activity, or 
        insurance to provide any of the foregoing, unemployment 
        benefits, life insurance, disability and sickness insurance, 
        accident insurance, vacation and holiday pay, costs of 
        apprenticeship or other similar programs and other bona fide 
        fringe benefits not otherwise required by Federal, State, or 
        local law to be provided by the contractor or subcontractor. The 
        obligation under this paragraph may be discharged by furnishing 
        any equivalent combinations of fringe benefits or by making 
        equivalent or differential payments in cash under regulations 
        established by the Secretary.
          (3) Working conditions.--The contract and bid specification 
        shall contain a provision specifying that no part of the 
        services covered by this chapter may be performed in buildings 
        or surroundings or under working conditions, provided by or 
        under the control or supervision of the contractor or any 
        subcontractor, which are unsanitary or hazardous or dangerous to 
        the health or safety of service employees engaged to provide the 
        services.
          (4) Notice.--The contract and bid specification shall contain 
        a provision specifying that on the date a service employee 
        begins work on a contract to which this chapter applies, the 
        contractor or subcontractor will deliver to the employee a 
        notice of the compensation required under paragraphs (1) and 
        (2), on a form prepared by the Federal agency, or will post a 
        notice of the required compensation in a prominent place at the 
        worksite.
          (5) General schedule pay rates and prevailing rate systems.--
        The contract and bid specification shall contain a statement of 
        the rates that would be paid by the Federal agency to each class 
        of service employee if section 5332 or 5341 of title 5 were 
        applicable to them. The Secretary shall give due consideration 
        to these rates in making the wage and fringe benefit 
        determinations specified in this section.

Sec. 6704. Limitation on minimum wage

  (a) In General.--A contractor that makes a contract with the Federal 
Government, the principal purpose of which is to furnish

[[Page 124 STAT. 3814]]

services through the use of service employees, and any subcontractor, 
may not pay less than the minimum wage specified under section 6(a)(1) 
of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) to an 
employee engaged in performing work on the contract.
  (b) Violations.--Sections 6705 to 6707(d) of this title are applicable 
to a violation of this section.

Sec. 6705. Violations

  (a) Liability of Responsible Party.--A party responsible for a 
violation of a contract provision required under section 6703(1) or (2) 
of this title or a violation of section 6704 of this title is liable for 
an amount equal to the sum of any deduction, rebate, refund, or 
underpayment of compensation due any employee engaged in the performance 
of the contract.
  (b) Recovery of Amounts Underpaid to Employees.--
          (1) Withholding accrued payments due on contracts.--The total 
        amount determined under subsection (a) to be due any employee 
        engaged in the performance of a contract may be withheld from 
        accrued payments due on the contract or on any other contract 
        between the same contractor and the Federal Government. The 
        amount withheld shall be held in a deposit fund. On order of the 
        Secretary, the compensation found by the Secretary or the head 
        of a Federal agency to be due an underpaid employee pursuant to 
        this chapter shall be paid from the deposit fund directly to the 
        underpaid employee.
          (2) Bringing actions against contractors.--If the accrued 
        payments withheld under the terms of the contract are 
        insufficient to reimburse a service employee with respect to 
        whom there has been a failure to pay the compensation required 
        pursuant to this chapter, the Federal Government may bring 
        action against the contractor, subcontractor, or any sureties in 
        any court of competent jurisdiction to recover the remaining 
        amount of underpayment. Any amount recovered shall be held in 
        the deposit fund and shall be paid, on order of the Secretary, 
        directly to the underpaid employee. Any amount not paid to an 
        employee because of inability to do so within 3 years shall be 
        covered into the Treasury as miscellaneous receipts.

  (c) Cancellation and Alternative Completion.--In addition to other 
actions in accordance with this section, when a violation of any 
contract stipulation is found, the Federal agency that made the contract 
may cancel the contract on written notice to the original contractor. 
The Federal Government may then make other contracts or arrangements for 
the completion of the original contract, charging any additional cost to 
the original contractor.
  (d) Enforcement of Section.--In accordance with regulations prescribed 
pursuant to section 6707(a)-(d) of this title, the Secretary or the head 
of a Federal agency may carry out this section.

Sec. 6706. Three-year prohibition on new contracts in case of violation

  (a) Distribution of List.--The Comptroller General shall distribute to 
each agency of the Federal Government a list containing the names of 
persons or firms that a Federal agency or the Secretary has found to 
have violated this chapter.
  (b) Three-Year Prohibition.--Unless the Secretary recommends otherwise 
because of unusual circumstances, a Federal Government

[[Page 124 STAT. 3815]]

contract may not be awarded to a person or firm named on the list under 
subsection (a), or to an entity in which the person or firm has a 
substantial interest, until 3 years have elapsed from the date of 
publication of the list. If the Secretary does not recommend otherwise 
because of unusual circumstances, the Secretary shall, not later than 90 
days after a hearing examiner has made a finding of a violation of this 
chapter, forward to the Comptroller General the name of the person or 
firm found to have violated this chapter.

Sec. 6707. Enforcement and administration of chapter

  (a) Enforcement of Chapter.--Sections 6506 and 6507 of this title 
govern the Secretary's authority to enforce this chapter, including the 
Secretary's authority to prescribe regulations, issue orders, hold 
hearings, make decisions based on findings of fact, and take other 
appropriate action under this chapter.
  (b) Limitations and Regulations for Variations, Tolerances, and 
Exemptions.--The Secretary may provide reasonable limitations and may 
prescribe regulations allowing reasonable variation, tolerances, and 
exemptions with respect to this chapter (other than subsection (f)), but 
only in special circumstances where the Secretary determines that the 
limitation, variation, tolerance, or exemption is necessary and proper 
in the public interest or to avoid the serious impairment of Federal 
Government business, and is in accord with the remedial purpose of this 
chapter to protect prevailing labor standards.
  (c) Preservation of Wages and Benefits Due Under Predecessor 
Contracts.--
          (1) In general.--Under a contract which succeeds a contract 
        subject to this chapter, and under which substantially the same 
        services are furnished, a contractor or subcontractor may not 
        pay a service employee less than the wages and fringe benefits 
        the service employee would have received under the predecessor 
        contract, including accrued wages and fringe benefits and any 
        prospective increases in wages and fringe benefits provided for 
        in a collective-bargaining agreement as a result of arm's-length 
        negotiations.
          (2) Exception.--This subsection does not apply if the 
        Secretary finds after a hearing in accordance with regulations 
        adopted by the Secretary that wages and fringe benefits under 
        the predecessor contract are substantially at variance with 
        wages and fringe benefits prevailing in the same locality for 
        services of a similar character.

  (d) Duration of Contracts.--Subject to limitations in annual 
appropriation acts but notwithstanding any other law, a contract to 
which this chapter applies may, if authorized by the Secretary, be for 
any term of years not exceeding 5, if the contract provides for periodic 
adjustment of wages and fringe benefits pursuant to future 
determinations, issued in the manner prescribed in section 6703 of this 
title at least once every 2 years during the term of the contract, 
covering each class of service employee.
  (e) Exclusion of Fringe Benefit Payments in Determining Overtime 
Pay.--In determining any overtime pay to which a service employee is 
entitled under Federal law, the regular or basic hourly rate of pay of 
the service employee does not include any fringe benefit payments 
computed under this chapter which are excluded from the definition of 
``regular rate'' under section 7(e) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 207(e)).

[[Page 124 STAT. 3816]]

  (f) Timeliness of Wage and Fringe Benefit Determinations.--It is the 
intent of Congress that determinations of minimum wages and fringe 
benefits under section 6703(1) and (2) of this title should be made as 
soon as administratively feasible for all contracts subject to this 
chapter. In any event, the Secretary shall at least make the 
determinations for contracts under which more than 5 service employees 
are to be employed.

                     Subtitle III--Contract Disputes

Chapter                                                             Sec.
            Contract Disputes                                       7101

                      CHAPTER 71--CONTRACT DISPUTES

Sec.
7101.  Definitions.
7102.  Applicability of chapter.
7103.  Decision by contracting officer.
7104.  Contractor's right of appeal from decision by contracting 
           officer.
7105.  Agency boards.
7106.  Agency board procedures for accelerated and small claims.
7107.  Judicial review of agency board decisions.
7108.  Payment of claims.
7109.  Interest.

Sec. 7101. Definitions

  In this chapter:
          (1) Administrator.--The term ``Administrator'' means the 
        Administrator for Federal Procurement Policy appointed pursuant 
        to section 1102 of this title.
          (2) Agency board or agency board of contract appeals.--The 
        term ``agency board'' or ``agency board of contract appeals'' 
        means--
                  (A) the Armed Services Board;
                  (B) the Civilian Board;
                  (C) the board of contract appeals of the Tennessee 
                Valley Authority; or
                  (D) the Postal Service Board established under section 
                7105(d)(1) of this title.
          (3) Agency head.--The term ``agency head'' means the head and 
        any assistant head of an executive agency. The term may include 
        the chief official of a principal division of an executive 
        agency if the head of the executive agency so designates that 
        chief official.
          (4) Armed services board.--The term ``Armed Services Board'' 
        means the Armed Services Board of Contract Appeals established 
        under section 7105(a)(1) of this title.
          (5) Civilian board.--The term ``Civilian Board'' means the 
        Civilian Board of Contract Appeals established under section 
        7105(b)(1) of this title.
          (6) Contracting officer.--The term ``contracting officer''--
                  (A) means an individual who, by appointment in 
                accordance with applicable regulations, has the 
                authority to make and administer contracts and to make 
                determinations and findings with respect to contracts; 
                and
                  (B) includes an authorized representative of the 
                contracting officer, acting within the limits of the 
                representative's authority.

[[Page 124 STAT. 3817]]

          (7) Contractor.--The term ``contractor'' means a party to a 
        Federal Government contract other than the Federal Government.
          (8) Executive agency.--The term ``executive agency'' means--
                  (A) an executive department as defined in section 101 
                of title 5;
                  (B) a military department as defined in section 102 of 
                title 5;
                  (C) an independent establishment as defined in section 
                104 of title 5, except that the term does not include 
                the Government Accountability Office; and
                  (D) a wholly owned Government corporation as defined 
                in section 9101(3) of title 31.
          (9) Misrepresentation of fact.--The term ``misrepresentation 
        of fact'' means a false statement of substantive fact, or 
        conduct that leads to a belief of a substantive fact material to 
        proper understanding of the matter in hand, made with intent to 
        deceive or mislead.

Sec. 7102. Applicability of chapter

  (a) Executive Agency Contracts.--Unless otherwise specifically 
provided in this chapter, this chapter applies to any express or implied 
contract (including those of the nonappropriated fund activities 
described in sections 1346 and 1491 of title 28) made by an executive 
agency for--
          (1) the procurement of property, other than real property in 
        being;
          (2) the procurement of services;
          (3) the procurement of construction, alteration, repair, or 
        maintenance of real property; or
          (4) the disposal of personal property.

  (b) Tennessee Valley Authority Contracts.--
          (1) In general.--With respect to contracts of the Tennessee 
        Valley Authority, this chapter applies only to contracts 
        containing a clause that requires contract disputes to be 
        resolved through an agency administrative process.
          (2) Exclusion.--Notwithstanding any other provision of this 
        chapter, this chapter does not apply to a contract of the 
        Tennessee Valley Authority for the sale of fertilizer or 
        electric power or related to the conduct or operation of the 
        electric power system.

  (c) Foreign Government or International Organization Contracts.--If an 
agency head determines that applying this chapter would not be in the 
public interest, this chapter does not apply to a contract with a 
foreign government, an agency of a foreign government, an international 
organization, or a subsidiary body of an international organization.
  (d) Maritime Contracts.--Appeals under section 7107(a) of this title 
and actions brought under sections 7104(b) and 7107(b) to (f) of this 
title, arising out of maritime contracts, are governed by chapter 309 or 
311 of title 46, as applicable, to the extent that those chapters are 
not inconsistent with this chapter.

Sec. 7103. Decision by contracting officer

  (a) Claims Generally.--
          (1) Submission of contractor's claims to contracting 
        officer.--Each claim by a contractor against the Federal

[[Page 124 STAT. 3818]]

        Government relating to a contract shall be submitted to the 
        contracting officer for a decision.
          (2) Contractor's claims in writing.--Each claim by a 
        contractor against the Federal Government relating to a contract 
        shall be in writing.
          (3) Contracting officer to decide federal government's 
        claims.--Each claim by the Federal Government against a 
        contractor relating to a contract shall be the subject of a 
        written decision by the contracting officer.
          (4) Time for submitting claims.--
                  (A) In general.--Each claim by a contractor against 
                the Federal Government relating to a contract and each 
                claim by the Federal Government against a contractor 
                relating to a contract shall be submitted within 6 years 
                after the accrual of the claim.
                  (B) Exception.--Subparagraph (A) of this paragraph 
                does not apply to a claim by the Federal Government 
                against a contractor that is based on a claim by the 
                contractor involving fraud.
          (5) Applicability.--The authority of this subsection and 
        subsections (c)(1), (d), and (e) does not extend to a claim or 
        dispute for penalties or forfeitures prescribed by statute or 
        regulation that another Federal agency is specifically 
        authorized to administer, settle, or determine.

  (b) Certification of Claims.--
          (1) Requirement generally.--For claims of more than $100,000 
        made by a contractor, the contractor shall certify that--
                  (A) the claim is made in good faith;
                  (B) the supporting data are accurate and complete to 
                the best of the contractor's knowledge and belief;
                  (C) the amount requested accurately reflects the 
                contract adjustment for which the contractor believes 
                the Federal Government is liable; and
                  (D) the certifier is authorized to certify the claim 
                on behalf of the contractor.
          (2) Who may execute certification.--The certification required 
        by paragraph (1) may be executed by an individual authorized to 
        bind the contractor with respect to the claim.
          (3) Failure to certify or defective certification.--A 
        contracting officer is not obligated to render a final decision 
        on a claim of more than $100,000 that is not certified in 
        accordance with paragraph (1) if, within 60 days after receipt 
        of the claim, the contracting officer notifies the contractor in 
        writing of the reasons why any attempted certification was found 
        to be defective. A defect in the certification of a claim does 
        not deprive a court or an agency board of jurisdiction over the 
        claim. Prior to the entry of a final judgment by a court or a 
        decision by an agency board, the court or agency board shall 
        require a defective certification to be corrected.

  (c) Fraudulent Claims.--
          (1) No authority to settle.--This section does not authorize 
        an agency head to settle, compromise, pay, or otherwise adjust 
        any claim involving fraud.
          (2) Liability of contractor.--If a contractor is unable to 
        support any part of the contractor's claim and it is determined 
        that the inability is attributable to a misrepresentation of 
        fact or fraud by the contractor, then the contractor is liable 
        to

[[Page 124 STAT. 3819]]

        the Federal Government for an amount equal to the unsupported 
        part of the claim plus all of the Federal Government's costs 
        attributable to reviewing the unsupported part of the claim. 
        Liability under this paragraph shall be determined within 6 
        years of the commission of the misrepresentation of fact or 
        fraud.

  (d) Issuance of Decision.--The contracting officer shall issue a 
decision in writing and shall mail or otherwise furnish a copy of the 
decision to the contractor.
  (e) Contents of Decision.--The contracting officer's decision shall 
state the reasons for the decision reached and shall inform the 
contractor of the contractor's rights as provided in this chapter. 
Specific findings of fact are not required. If made, specific findings 
of fact are not binding in any subsequent proceeding.
  (f) Time for Issuance of Decision.--
          (1) Claim of $100,000 or less.--A contracting officer shall 
        issue a decision on any submitted claim of $100,000 or less 
        within 60 days from the contracting officer's receipt of a 
        written request from the contractor that a decision be rendered 
        within that period.
          (2) Claim of more than $100,000.--A contracting officer shall, 
        within 60 days of receipt of a submitted certified claim over 
        $100,000--
                  (A) issue a decision; or
                  (B) notify the contractor of the time within which a 
                decision will be issued.
          (3) General requirement of reasonableness.--The decision of a 
        contracting officer on submitted claims shall be issued within a 
        reasonable time, in accordance with regulations prescribed by 
        the agency, taking into account such factors as the size and 
        complexity of the claim and the adequacy of information in 
        support of the claim provided by the contractor.
          (4) Requesting tribunal to direct issuance within specified 
        time period.--A contractor may request the tribunal concerned to 
        direct a contracting officer to issue a decision in a specified 
        period of time, as determined by the tribunal concerned, in the 
        event of undue delay on the part of the contracting officer.
          (5) Failure to issue decision within required time period.--
        Failure by a contracting officer to issue a decision on a claim 
        within the required time period is deemed to be a decision by 
        the contracting officer denying the claim and authorizes an 
        appeal or action on the claim as otherwise provided in this 
        chapter. However, the tribunal concerned may, at its option, 
        stay the proceedings of the appeal or action to obtain a 
        decision by the contracting officer.

  (g) Finality of Decision Unless Appealed.--The contracting officer's 
decision on a claim is final and conclusive and is not subject to review 
by any forum, tribunal, or Federal Government agency, unless an appeal 
or action is timely commenced as authorized by this chapter. This 
chapter does not prohibit an executive agency from including a clause in 
a Federal Government contract requiring that, pending final decision of 
an appeal, action, or final settlement, a contractor shall proceed 
diligently with performance of the contract in accordance with the 
contracting officer's decision.
  (h) Alternative Means of Dispute Resolution.--
          (1) In general.--Notwithstanding any other provision of this 
        chapter, a contractor and a contracting officer may use any

[[Page 124 STAT. 3820]]

        alternative means of dispute resolution under subchapter IV of 
        chapter 5 of title 5, or other mutually agreeable procedures, 
        for resolving claims. All provisions of subchapter IV of chapter 
        5 of title 5 apply to alternative means of dispute resolution 
        under this subsection.
          (2) Certification of claim.--The contractor shall certify the 
        claim when required to do so under subsection (b)(1) or other 
        law.
          (3) Rejecting request for alternative dispute resolution.--
                  (A) Contracting officer.--A contracting officer who 
                rejects a contractor's request for alternative dispute 
                resolution proceedings shall provide the contractor with 
                a written explanation, citing one or more of the 
                conditions in section 572(b) of title 5 or other 
                specific reasons that alternative dispute resolution 
                procedures are inappropriate.
                  (B) Contractor.--A contractor that rejects an agency's 
                request for alternative dispute resolution proceedings 
                shall inform the agency in writing of the contractor's 
                specific reasons for rejecting the request.

Sec. 7104. Contractor's right of appeal from decision by contracting 
                        officer

  (a) Appeal to Agency Board.--A contractor, within 90 days from the 
date of receipt of a contracting officer's decision under section 7103 
of this title, may appeal the decision to an agency board as provided in 
section 7105 of this title.
  (b) Bringing an Action De Novo in Federal Court.--
          (1) In general.--Except as provided in paragraph (2), and in 
        lieu of appealing the decision of a contracting officer under 
        section 7103 of this title to an agency board, a contractor may 
        bring an action directly on the claim in the United States Court 
        of Federal Claims, notwithstanding any contract provision, 
        regulation, or rule of law to the contrary.
          (2) Tennessee valley authority.--In the case of an action 
        against the Tennessee Valley Authority, the contractor may only 
        bring an action directly on the claim in a district court of the 
        United States pursuant to section 1337 of title 28, 
        notwithstanding any contract provision, regulation, or rule of 
        law to the contrary.
          (3) Time for filing.--A contractor shall file any action under 
        paragraph (1) or (2) within 12 months from the date of receipt 
        of a contracting officer's decision under section 7103 of this 
        title.
          (4) De novo.--An action under paragraph (1) or (2) shall 
        proceed de novo in accordance with the rules of the appropriate 
        court.

Sec. 7105. Agency boards

  (a) Armed Services Board.--
          (1) Establishment.--An Armed Services Board of Contract 
        Appeals may be established within the Department of Defense when 
        the Secretary of Defense, after consultation with the 
        Administrator, determines from a workload study that the volume 
        of contract claims justifies the establishment of a full-time 
        agency board of at least 3 members who shall have no other 
        inconsistent duties. Workload studies will be updated at least 
        once every 3 years and submitted to the Administrator.

[[Page 124 STAT. 3821]]

          (2) Appointment of members and compensation.--Members of the 
        Armed Services Board shall be selected and appointed in the same 
        manner as administrative law judges appointed pursuant to 
        section 3105 of title 5, with an additional requirement that 
        members must have had at least 5 years of experience in public 
        contract law. The Secretary of Defense shall designate the 
        chairman and vice chairman of the Armed Services Board from 
        among the appointed members. Compensation for the chairman, vice 
        chairman, and other members shall be determined under section 
        5372a of title 5.

  (b) Civilian Board.--
          (1) Establishment.--There is established in the General 
        Services Administration the Civilian Board of Contract Appeals.
          (2) Membership.--
                  (A) Eligibility.--The Civilian Board consists of 
                members appointed by the Administrator of General 
                Services (in consultation with the Administrator for 
                Federal Procurement Policy) from a register of 
                applicants maintained by the Administrator of General 
                Services, in accordance with rules issued by the 
                Administrator of General Services (in consultation with 
                the Administrator for Federal Procurement Policy) for 
                establishing and maintaining a register of eligible 
                applicants and selecting Civilian Board members. The 
                Administrator of General Services shall appoint a member 
                without regard to political affiliation and solely on 
                the basis of the professional qualifications required to 
                perform the duties and responsibilities of a Civilian 
                Board member.
                  (B) Appointment of members and compensation.--Members 
                of the Civilian Board shall be selected and appointed to 
                serve in the same manner as administrative law judges 
                appointed pursuant to section 3105 of title 5, with an 
                additional requirement that members must have had at 
                least 5 years experience in public contract law. 
                Compensation for the members shall be determined under 
                section 5372a of title 5.
          (3) Removal.--Members of the Civilian Board are subject to 
        removal in the same manner as administrative law judges, as 
        provided in section 7521 of title 5.
          (4) Functions.--
                  (A) In general.--The Civilian Board has jurisdiction 
                as provided by subsection (e)(1)(B).
                  (B) Additional jurisdiction.--With the concurrence of 
                the Federal agencies affected, the Civilian Board may 
                assume--
                        (i) jurisdiction over any additional category of 
                      laws or disputes over which an agency board of 
                      contract appeals established pursuant to section 8 
                      of the Contract Disputes Act exercised 
                      jurisdiction before January 6, 2007; and
                        (ii) any other function the agency board 
                      performed before January 6, 2007, on behalf of 
                      those agencies.

  (c) Tennessee Valley Authority Board.--
          (1) Establishment.--The Board of Directors of the Tennessee 
        Valley Authority may establish a board of contract appeals of 
        the Tennessee Valley Authority of an indeterminate number of 
        members.

[[Page 124 STAT. 3822]]

          (2) Appointment of members and compensation.--The Board of 
        Directors of the Tennessee Valley Authority shall establish 
        criteria for the appointment of members to the agency board 
        established under paragraph (1), and shall designate a chairman 
        of the agency board. The chairman and other members of the 
        agency board shall receive compensation, at the daily equivalent 
        of the rates determined under section 5372a of title 5, for each 
        day they are engaged in the actual performance of their duties 
        as members of the agency board.

  (d) Postal Service Board.--
          (1) Establishment.--There is established an agency board of 
        contract appeals known as the Postal Service Board of Contract 
        Appeals.
          (2) Appointment and service of members.--The Postal Service 
        Board of Contract Appeals consists of judges appointed by the 
        Postmaster General. The judges shall meet the qualifications of 
        and serve in the same manner as members of the Civilian Board.
          (3) Application.--This chapter applies to contract disputes 
        before the Postal Service Board of Contract Appeals in the same 
        manner as it applies to contract disputes before the Civilian 
        Board.

  (e) Jurisdiction.--
          (1) In general.--
                  (A) Armed services board.--The Armed Services Board 
                has jurisdiction to decide any appeal from a decision of 
                a contracting officer of the Department of Defense, the 
                Department of the Army, the Department of the Navy, the 
                Department of the Air Force, or the National Aeronautics 
                and Space Administration relative to a contract made by 
                that department or agency.
                  (B) Civilian board.--The Civilian Board has 
                jurisdiction to decide any appeal from a decision of a 
                contracting officer of any executive agency (other than 
                the Department of Defense, the Department of the Army, 
                the Department of the Navy, the Department of the Air 
                Force, the National Aeronautics and Space 
                Administration, the United States Postal Service, the 
                Postal Regulatory Commission, or the Tennessee Valley 
                Authority) relative to a contract made by that agency.
                  (C) Postal service board.--The Postal Service Board of 
                Contract Appeals has jurisdiction to decide any appeal 
                from a decision of a contracting officer of the United 
                States Postal Service or the Postal Regulatory 
                Commission relative to a contract made by either agency.
                  (D) Other agency boards.--Each other agency board has 
                jurisdiction to decide any appeal from a decision of a 
                contracting officer relative to a contract made by its 
                agency.
          (2) Relief.--In exercising this jurisdiction, an agency board 
        may grant any relief that would be available to a litigant 
        asserting a contract claim in the United States Court of Federal 
        Claims.

  (f) Subpoena, Discovery, and Deposition.--A member of an agency board 
of contract appeals may administer oaths to witnesses, authorize 
depositions and discovery proceedings, and require by subpoena the 
attendance of witnesses, and production of books and papers, for the 
taking of testimony or evidence by deposition

[[Page 124 STAT. 3823]]

or in the hearing of an appeal by the agency board. In case of contumacy 
or refusal to obey a subpoena by a person who resides, is found, or 
transacts business within the jurisdiction of a United States district 
court, the court, upon application of the agency board through the 
Attorney General, or upon application by the board of contract appeals 
of the Tennessee Valley Authority, shall have jurisdiction to issue the 
person an order requiring the person to appear before the agency board 
or a member of the agency board, to produce evidence or to give 
testimony, or both. Any failure of the person to obey the order of the 
court may be punished by the court as contempt of court.
  (g) Decisions.--An agency board shall--
          (1) to the fullest extent practicable provide informal, 
        expeditious, and inexpensive resolution of disputes;
          (2) issue a decision in writing or take other appropriate 
        action on each appeal submitted; and
          (3) mail or otherwise furnish a copy of the decision to the 
        contractor and the contracting officer.

Sec. 7106. Agency board procedures for accelerated and small claims

  (a) Accelerated Procedure Where $100,000 or Less in Dispute.--The 
rules of each agency board shall include a procedure for the accelerated 
disposition of any appeal from a decision of a contracting officer where 
the amount in dispute is $100,000 or less. The accelerated procedure is 
applicable at the sole election of the contractor. An appeal under the 
accelerated procedure shall be resolved, whenever possible, within 180 
days from the date the contractor elects to use the procedure.
  (b) Small Claims Procedure.--
          (1) In general.--The rules of each agency board shall include 
        a procedure for the expedited disposition of any appeal from a 
        decision of a contracting officer where the amount in dispute is 
        $50,000 or less, or in the case of a small business concern (as 
        defined in the Small Business Act (15 U.S.C. 631 et seq.) and 
        regulations under that Act), $150,000 or less. The small claims 
        procedure is applicable at the sole election of the contractor.
          (2) Simplified rules of procedure.--The small claims procedure 
        shall provide for simplified rules of procedure to facilitate 
        the decision of any appeal. An appeal under the small claims 
        procedure may be decided by a single member of the agency board 
        with such concurrences as may be provided by rule or regulation.
          (3) Time of decision.--An appeal under the small claims 
        procedure shall be resolved, whenever possible, within 120 days 
        from the date the contractor elects to use the procedure.
          (4) Finality of decision.--A decision against the Federal 
        Government or against the contractor reached under the small 
        claims procedure is final and conclusive and may not be set 
        aside except in cases of fraud.
          (5) No precedent.--Administrative determinations and final 
        decisions under this subsection have no value as precedent for 
        future cases under this chapter.
          (6) Review of requisite amounts in controversy.--The 
        Administrator, from time to time, may review the dollar amounts 
        specified in paragraph (1) and adjust the amounts

[[Page 124 STAT. 3824]]

        in accordance with economic indexes selected by the 
        Administrator.

Sec. 7107. Judicial review of agency board decisions

  (a) Review.--
          (1) In general.--The decision of an agency board is final, 
        except that--
                  (A) a contractor may appeal the decision to the United 
                States Court of Appeals for the Federal Circuit within 
                120 days from the date the contractor receives a copy of 
                the decision; or
                  (B) if an agency head determines that an appeal should 
                be taken, the agency head, with the prior approval of 
                the Attorney General, may transmit the decision to the 
                United States Court of Appeals for the Federal Circuit 
                for judicial review under section 1295 of title 28, 
                within 120 days from the date the agency receives a copy 
                of the decision.
          (2) Tennessee valley authority.--Notwithstanding paragraph 
        (1), a decision of the board of contract appeals of the 
        Tennessee Valley Authority is final, except that--
                  (A) a contractor may appeal the decision to a United 
                States district court pursuant to section 1337 of title 
                28, within 120 days from the date the contractor 
                receives a copy of the decision; or
                  (B) the Tennessee Valley Authority may appeal the 
                decision to a United States district court pursuant to 
                section 1337 of title 28, within 120 days from the date 
                of the decision.
          (3) Review of arbitration.--An award by an arbitrator under 
        this chapter shall be reviewed pursuant to sections 9 to 13 of 
        title 9, except that the court may set aside or limit any award 
        that is found to violate limitations imposed by Federal statute.

  (b) Finality of Agency Board Decisions on Questions of Law and Fact.--
Notwithstanding any contract provision, regulation, or rule of law to 
the contrary, in an appeal by a contractor or the Federal Government 
from the decision of an agency board pursuant to subsection (a)--
          (1) the decision of the agency board on a question of law is 
        not final or conclusive; but
          (2) the decision of the agency board on a question of fact is 
        final and conclusive and may not be set aside unless the 
        decision is--
                  (A) fraudulent, arbitrary, or capricious;
                  (B) so grossly erroneous as to necessarily imply bad 
                faith; or
                  (C) not supported by substantial evidence.

  (c) Remand.--In an appeal by a contractor or the Federal Government 
from the decision of an agency board pursuant to subsection (a), the 
court may render an opinion and judgment and remand the case for further 
action by the agency board or by the executive agency as appropriate, 
with direction the court considers just and proper.
  (d) Consolidation.--If 2 or more actions arising from one contract are 
filed in the United States Court of Federal Claims and one or more 
agency boards, for the convenience of parties or witnesses or in the 
interest of justice, the United States Court of

[[Page 124 STAT. 3825]]

Federal Claims may order the consolidation of the actions in that court 
or transfer any actions to or among the agency boards involved.
  (e) Judgments as to Fewer Than All Claims or Parties.--In an action 
filed pursuant to this chapter involving 2 or more claims, 
counterclaims, cross-claims, or third-party claims, and where a portion 
of one of the claims can be divided for purposes of decision or 
judgment, and in any action where multiple parties are involved, the 
court, whenever appropriate, may enter a judgment as to one or more but 
fewer than all of the claims or portions of claims or parties.
  (f) Advisory Opinions.--
          (1) In general.--Whenever an action involving an issue 
        described in paragraph (2) is pending in a district court of the 
        United States, the district court may request an agency board to 
        provide the court with an advisory opinion on the matters of 
        contract interpretation under consideration.
          (2) Applicable issue.--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 chapter.
          (3) Referral to agency board with jurisdiction.--A district 
        court shall direct a request under paragraph (1) to the agency 
        board having jurisdiction under this chapter to adjudicate 
        appeals of contract claims under the contract being interpreted 
        by the court.
          (4) Timely response.--After receiving a request for an 
        advisory opinion under paragraph (1), an agency board shall 
        provide the advisory opinion in a timely manner to the district 
        court making the request.

Sec. 7108. Payment of claims

  (a) Judgments.--Any judgment against the Federal Government on a claim 
under this chapter shall be paid promptly in accordance with the 
procedures provided by section 1304 of title 31.
  (b) Monetary Awards.--Any monetary award to a contractor by an agency 
board shall be paid promptly in accordance with the procedures contained 
in subsection (a).
  (c) Reimbursement.--Payments made pursuant to subsections (a) and (b) 
shall be reimbursed to the fund provided by section 1304 of title 31 by 
the agency whose appropriations were used for the contract out of 
available amounts or by obtaining additional appropriations for purposes 
of reimbursement.
  (d) Tennessee Valley Authority.--
          (1) Judgments.--Notwithstanding subsections (a) to (c), any 
        judgment against the Tennessee Valley Authority on a claim under 
        this chapter shall be paid promptly in accordance with section 
        9(b) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 
        831h(b)).
          (2) Monetary awards.--Notwithstanding subsections (a) to (c), 
        any monetary award to a contractor by the board of contract 
        appeals of the Tennessee Valley Authority shall be paid in 
        accordance with section 9(b) of the Tennessee Valley Authority 
        Act of 1933 (16 U.S.C. 831h(b)).

Sec. 7109. Interest

  (a) Period.--
          (1) In general.--Interest on an amount found due a contractor 
        on a claim shall be paid to the contractor for the

[[Page 124 STAT. 3826]]

        period beginning with the date the contracting officer receives 
        the contractor's claim, pursuant to section 7103(a) of this 
        title, until the date of payment of the claim.
          (2) Defective certification.--On a claim for which the 
        certification under section 7103(b)(1) of this title is found to 
        be defective, any interest due under this section shall be paid 
        for the period beginning with the date the contracting officer 
        initially receives the contractor's claim until the date of 
        payment of the claim.

  (b) Rate.--Interest shall accrue and be paid at a rate which the 
Secretary of the Treasury shall specify as applicable for each 
successive 6-month period. The rate shall be determined by the Secretary 
of the Treasury taking into consideration current private commercial 
rates of interest for new loans maturing in approximately 5 years.

                       Subtitle IV--Miscellaneous

Chapter                                                             Sec.
            Drug-Free Workplace                                     8101
            Buy American                                            8301
            Committee for Purchase From People Who Are Blind or     8501
                Severely Disabled
            Kickbacks                                               8701

                     CHAPTER 81--DRUG-FREE WORKPLACE

Sec.
8101.  Definitions and construction.
8102.  Drug-free workplace requirements for Federal contractors.
8103.  Drug-free workplace requirements for Federal grant recipients.
8104.  Employee sanctions and remedies.
8105.  Waiver.
8106.  Regulations.

Sec. 8101. Definitions and construction

  (a) Definitions.--In this chapter:
          (1) Contractor.--The term ``contractor'' means the department, 
        division, or other unit of a person responsible for the 
        performance under the contract.
          (2) Controlled substance.--The term ``controlled substance'' 
        means a controlled substance in schedules I through V of section 
        202 of the Comprehensive Drug Abuse Prevention and Control Act 
        of 1970 (21 U.S.C. 812).
          (3) Conviction.--The term ``conviction'' means a finding of 
        guilt (including a plea of nolo contendere), an imposition of 
        sentence, or both, by a judicial body charged with the 
        responsibility to determine violations of Federal or State 
        criminal drug statutes.
          (4) Criminal drug statute.--The term ``criminal drug statute'' 
        means a criminal statute involving manufacture, distribution, 
        dispensation, use, or possession of a controlled substance.
          (5) Drug-free workplace.--The term ``drug-free workplace'' 
        means a site of an entity--
                  (A) for the performance of work done in connection 
                with a specific contract or grant described in section 
                8102 or 8103 of this title; and
                  (B) at which employees of the entity are prohibited 
                from engaging in the unlawful manufacture, distribution, 
                dispensation, possession, or use of a controlled 
                substance in

[[Page 124 STAT. 3827]]

                accordance with the requirements of the Anti-Drug Abuse 
                Act of 1988 (Public Law 100-690, 102 Stat. 4181).
          (6) Employee.--The term ``employee'' means the employee of a 
        contractor or grantee directly engaged in the performance of 
        work pursuant to the contract or grant described in section 8102 
        or 8103 of this title.
          (7) Federal agency.--The term ``Federal agency'' means an 
        agency as defined in section 552(f) of title 5.
          (8) Grantee.--The term ``grantee'' means the department, 
        division, or other unit of a person responsible for the 
        performance under the grant.

  (b) Construction.--This chapter does not require law enforcement 
agencies to comply with this chapter if the head of the agency 
determines it would be inappropriate in connection with the agency's 
undercover operations.

Sec. 8102. Drug-free workplace requirements for Federal contractors

  (a) In General.--
          (1) Persons other than individuals.--A person other than an 
        individual shall not be considered a responsible source (as 
        defined in section 113 of this title) for the purposes of being 
        awarded a contract for the procurement of any property or 
        services of a value greater than the simplified acquisition 
        threshold (as defined in section 134 of this title) by a Federal 
        agency, other than a contract for the procurement of commercial 
        items (as defined in section 103 of this title), unless the 
        person agrees to provide a drug-free workplace by--
                  (A) publishing a statement notifying employees that 
                the unlawful manufacture, distribution, dispensation, 
                possession, or use of a controlled substance is 
                prohibited in the person's workplace and specifying the 
                actions that will be taken against employees for 
                violations of the prohibition;
                  (B) establishing a drug-free awareness program to 
                inform employees about--
                        (i) the dangers of drug abuse in the workplace;
                        (ii) the person's policy of maintaining a drug-
                      free workplace;
                        (iii) available drug counseling, rehabilitation, 
                      and employee assistance programs; and
                        (iv) the penalties that may be imposed on 
                      employees for drug abuse violations;
                  (C) making it a requirement that each employee to be 
                engaged in the performance of the contract be given a 
                copy of the statement required by subparagraph (A);
                  (D) notifying the employee in the statement required 
                by subparagraph (A) that as a condition of employment on 
                the contract the employee will--
                        (i) abide by the terms of the statement; and
                        (ii) notify the employer of any criminal drug 
                      statute conviction for a violation occurring in 
                      the workplace no later than 5 days after the 
                      conviction;
                  (E) notifying the contracting agency within 10 days 
                after receiving notice under subparagraph (D)(ii) from 
                an employee or otherwise receiving actual notice of a 
                conviction;
                  (F) imposing a sanction on, or requiring the 
                satisfactory participation in a drug abuse assistance or 
                rehabilitation

[[Page 124 STAT. 3828]]

                program by, any employee who is convicted, as required 
                by section 8104 of this title; and
                  (G) making a good faith effort to continue to maintain 
                a drug-free workplace through implementation of 
                subparagraphs (A) to (F).
          (2) Individuals.--A Federal agency shall not make a contract 
        with an individual unless the individual agrees not to engage in 
        the unlawful manufacture, distribution, dispensation, 
        possession, or use of a controlled substance in the performance 
        of the contract.

  (b) Suspension, Termination, or Debarment of Contractor.--
          (1) Grounds for suspension, termination, or debarment.--
        Payment under a contract awarded by a Federal agency may be 
        suspended and the contract may be terminated, and the contractor 
        or individual who made the contract with the agency may be 
        suspended or debarred in accordance with the requirements of 
        this section, if the head of the agency determines that--
                  (A) the contractor is violating, or has violated, the 
                requirements of subparagraph (A), (B), (C), (D), (E), or 
                (F) of subsection (a)(1); or
                  (B) the number of employees of the contractor who have 
                been convicted of violations of criminal drug statutes 
                for violations occurring in the workplace indicates that 
                the contractor has failed to make a good faith effort to 
                provide a drug-free workplace as required by subsection 
                (a).
          (2) Conduct of suspension, termination, and debarment 
        proceedings.--A contracting officer who determines in writing 
        that cause for suspension of payments, termination, or 
        suspension or debarment exists shall initiate an appropriate 
        action, to be conducted by the agency concerned in accordance 
        with the Federal Acquisition Regulation and applicable agency 
        procedures. The Federal Acquisition Regulation shall be revised 
        to include rules for conducting suspension and debarment 
        proceedings under this subsection, including rules providing 
        notice, opportunity to respond in writing or in person, and 
        other procedures as may be necessary to provide a full and fair 
        proceeding to a contractor or individual.
          (3) Effect of debarment.--A contractor or individual debarred 
        by a final decision under this subsection is ineligible for 
        award of a contract by a Federal agency, and for participation 
        in a future procurement by a Federal agency, for a period 
        specified in the decision, not to exceed 5 years.

Sec. 8103. Drug-free workplace requirements for Federal grant recipients

  (a) In General.--
          (1) Persons other than individuals.--A person other than an 
        individual shall not receive a grant from a Federal agency 
        unless the person agrees to provide a drug-free workplace by--
                  (A) publishing a statement notifying employees that 
                the unlawful manufacture, distribution, dispensation, 
                possession, or use of a controlled substance is 
                prohibited in the grantee's workplace and specifying the 
                actions that will be taken against employees for 
                violations of the prohibition;
                  (B) establishing a drug-free awareness program to 
                inform employees about--
                        (i) the dangers of drug abuse in the workplace;

[[Page 124 STAT. 3829]]

                        (ii) the grantee's policy of maintaining a drug-
                      free workplace;
                        (iii) available drug counseling, rehabilitation, 
                      and employee assistance programs; and
                        (iv) the penalties that may be imposed on 
                      employees for drug abuse violations;
                  (C) making it a requirement that each employee to be 
                engaged in the performance of the grant be given a copy 
                of the statement required by subparagraph (A);
                  (D) notifying the employee in the statement required 
                by subparagraph (A) that as a condition of employment in 
                the grant the employee will--
                        (i) abide by the terms of the statement; and
                        (ii) notify the employer of any criminal drug 
                      statute conviction for a violation occurring in 
                      the workplace no later than 5 days after the 
                      conviction;
                  (E) notifying the granting agency within 10 days after 
                receiving notice under subparagraph (D)(ii) from an 
                employee or otherwise receiving actual notice of a 
                conviction;
                  (F) imposing a sanction on, or requiring the 
                satisfactory participation in a drug abuse assistance or 
                rehabilitation program by, any employee who is 
                convicted, as required by section 8104 of this title; 
                and
                  (G) making a good faith effort to continue to maintain 
                a drug-free workplace through implementation of 
                subparagraphs (A) to (F).
          (2) Individuals.--A Federal agency shall not make a grant to 
        an individual unless the individual agrees not to engage in the 
        unlawful manufacture, distribution, dispensation, possession, or 
        use of a controlled substance in conducting an activity with the 
        grant.

  (b) Suspension, Termination, or Debarment of Grantee.--
          (1) Grounds for suspension, termination, or debarment.--
        Payment under a grant awarded by a Federal agency may be 
        suspended and the grant may be terminated, and the grantee may 
        be suspended or debarred, in accordance with the requirements of 
        this section, if the head of the agency or the official designee 
        of the head of the agency determines in writing that--
                  (A) the grantee is violating, or has violated, the 
                requirements of subparagraph (A), (B), (C), (D), (E), 
                (F), or (G) of subsection (a)(1); or
                  (B) the number of employees of the grantee who have 
                been convicted of violations of criminal drug statutes 
                for violations occurring in the workplace indicates that 
                the grantee has failed to make a good faith effort to 
                provide a drug-free workplace as required by subsection 
                (a)(1).
          (2) Conduct of suspension, termination, and debarment 
        proceedings.--A suspension of payments, termination, or 
        suspension or debarment proceeding subject to this subsection 
        shall be conducted in accordance with applicable law, including 
        Executive Order 12549 or any superseding executive order and any 
        regulations prescribed to implement the law or executive order.
          (3) Effect of debarment.--A grantee debarred by a final 
        decision under this subsection is ineligible for award of a 
        grant by a Federal agency, and for participation in a future 
        grant

[[Page 124 STAT. 3830]]

        by a Federal agency, for a period specified in the decision, not 
        to exceed 5 years.

Sec. 8104. Employee sanctions and remedies

  Within 30 days after receiving notice from an employee of a conviction 
pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) of this 
title, a contractor or grantee shall--
          (1) take appropriate personnel action against the employee, up 
        to and including termination; or
          (2) require the employee to satisfactorily participate in a 
        drug abuse assistance or rehabilitation program approved for 
        those purposes by a Federal, State, or local health, law 
        enforcement, or other appropriate agency.

Sec. 8105. Waiver

  (a) In General.--The head of an agency may waive a suspension of 
payments, termination of the contract or grant, or suspension or 
debarment of a contractor or grantee under this chapter with respect to 
a particular contract or grant if--
          (1) in the case of a contract, the head of the agency 
        determines under section 8102(b)(1) of this title, after a final 
        determination is issued under section 8102(b)(1), that 
        suspension of payments, termination of the contract, suspension 
        or debarment of the contractor, or refusal to permit a person to 
        be treated as a responsible source for a contract would severely 
        disrupt the operation of the agency to the detriment of the 
        Federal Government or the general public; or
          (2) in the case of a grant, the head of the agency determines 
        that suspension of payments, termination of the grant, or 
        suspension or debarment of the grantee would not be in the 
        public interest.

  (b) Waiver Authority May Not Be Delegated.--The authority of the head 
of an agency under this section to waive a suspension, termination, or 
debarment shall not be delegated.

Sec. 8106. Regulations

  Government-wide regulations governing actions under this chapter shall 
be issued pursuant to division B of subtitle I of this title.

                        CHAPTER 83--BUY AMERICAN

Sec.
8301.  Definitions.
8302.  American materials required for public use.
8303.  Contracts for public works.
8304.  Waiver rescission.
8305.  Annual report.

Sec. 8301. Definitions

  In this chapter:
          (1) Public building, public use, and public work.--The terms 
        ``public building'', ``public use'', and ``public work'' mean a 
        public building of, use by, and a public work of, the Federal 
        Government, the District of Columbia, Puerto Rico, American 
        Samoa, and the Virgin Islands.
          (2) United states.--The term ``United States'' includes any 
        place subject to the jurisdiction of the United States.

[[Page 124 STAT. 3831]]

Sec. 8302. American materials required for public use

  (a) In General.--
          (1) Allowable materials.--Only unmanufactured articles, 
        materials, and supplies that have been mined or produced in the 
        United States, and only manufactured articles, materials, and 
        supplies that have been manufactured in the United States 
        substantially all from articles, materials, or supplies mined, 
        produced, or manufactured in the United States, shall be 
        acquired for public use unless the head of the department or 
        independent establishment concerned determines their acquisition 
        to be inconsistent with the public interest or their cost to be 
        unreasonable.
          (2) Exceptions.--This section does not apply--
                  (A) to articles, materials, or supplies for use 
                outside the United States;
                  (B) if articles, materials, or supplies of the class 
                or kind to be used, or the articles, materials, or 
                supplies from which they are manufactured, are not 
                mined, produced, or manufactured in the United States in 
                sufficient and reasonably available commercial 
                quantities and are not of a satisfactory quality; and
                  (C) to manufactured articles, materials, or supplies 
                procured under any contract with an award value that is 
                not more than the micro-purchase threshold under section 
                1902 of this title.

  (b) Reports.--
          (1) In general.--Not later than 180 days after the end of each 
        of fiscal years 2009 through 2011, the head of each Federal 
        agency shall submit to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Oversight and Government Reform of the House of Representatives 
        a report on the amount of the acquisitions made by the agency in 
        that fiscal year of articles, materials, or supplies purchased 
        from entities that manufacture the articles, materials, or 
        supplies outside of the United States.
          (2) Contents of report.--The report required by paragraph (1) 
        shall separately include, for the fiscal year covered by the 
        report--
                  (A) the dollar value of any articles, materials, or 
                supplies that were manufactured outside the United 
                States;
                  (B) an itemized list of all waivers granted with 
                respect to the articles, materials, or supplies under 
                this chapter, and a citation to the treaty, 
                international agreement, or other law under which each 
                waiver was granted;
                  (C) if any articles, materials, or supplies were 
                acquired from entities that manufacture articles, 
                materials, or supplies outside the United States, the 
                specific exception under this section that was used to 
                purchase the articles, materials, or supplies; and
                  (D) a summary of--
                        (i) the total procurement funds expended on 
                      articles, materials, and supplies manufactured 
                      inside the United States; and
                        (ii) the total procurement funds expended on 
                      articles, materials, and supplies manufactured 
                      outside the United States.

[[Page 124 STAT. 3832]]

          (3) Public availability.--The head of each Federal agency 
        submitting a report under paragraph (1) shall make the report 
        publicly available to the maximum extent practicable.
          (4) Exception for intelligence community.--This subsection 
        shall not apply to acquisitions made by an agency, or component 
        of an agency, that is an element of the intelligence community 
        as specified in, or designated under, section 3 of the National 
        Security Act of 1947 (50 U.S.C. 401a).

Sec. 8303. Contracts for public works

  (a) In General.--Every contract for the construction, alteration, or 
repair of any public building or public work in the United States shall 
contain a provision that in the performance of the work the contractor, 
subcontractors, material men, or suppliers shall use only--
          (1) unmanufactured articles, materials, and supplies that have 
        been mined or produced in the United States; and
          (2) manufactured articles, materials, and supplies that have 
        been manufactured in the United States substantially all from 
        articles, materials, or supplies mined, produced, or 
        manufactured in the United States.

  (b) Exceptions.--
          (1) In general.--This section does not apply--
                  (A) to articles, materials, or supplies for use 
                outside the United States;
                  (B) if articles, materials, or supplies of the class 
                or kind to be used, or the articles, materials, or 
                supplies from which they are manufactured, are not 
                mined, produced, or manufactured in the United States in 
                sufficient and reasonably available commercial 
                quantities and are not of a satisfactory quality; and
                  (C) to manufactured articles, materials, or supplies 
                procured under any contract with an award value that is 
                not more than the micro-purchase threshold under section 
                1902 of this title.
          (2) Particular article, material, or supply.--If the head of 
        the department or independent establishment making the contract 
        finds that it is impracticable to comply with subsection (a) for 
        a particular article, material, or supply or that it would 
        unreasonably increase the cost, an exception shall be noted in 
        the specifications for that article, material, or supply and a 
        public record of the findings that justified the exception shall 
        be made.
          (3) Inconsistent with public interest.--Subsection (a) shall 
        be regarded as requiring the purchase, for public use within the 
        United States, of articles, materials, or supplies manufactured 
        in the United States in sufficient and reasonably available 
        commercial quantities and of a satisfactory quality, unless the 
        head of the department or independent establishment concerned 
        determines their purchase to be inconsistent with the public 
        interest or their cost to be unreasonable.

  (c) Results of Failure To Comply.--If the head of a department, 
bureau, agency, or independent establishment that has made a contract 
containing the provision required by subsection (a) finds that there has 
been a failure to comply with the provision in the performance of the 
contract, the head of the department, bureau, agency, or independent 
establishment shall make the findings

[[Page 124 STAT. 3833]]

public. The findings shall include the name of the contractor obligated 
under the contract. The contractor, and any subcontractor, material man, 
or supplier associated or affiliated with the contractor, shall not be 
awarded another contract for the construction, alteration, or repair of 
any public building or public work for 3 years after the findings are 
made public.

Sec. 8304. Waiver rescission

  (a) Type of Agreement.--An agreement referred to in subsection (b) is 
a reciprocal defense procurement memorandum of understanding between the 
United States and a foreign country pursuant to which the Secretary of 
Defense has prospectively waived this chapter for certain products in 
that country.
  (b) Determination by Secretary of Defense.--If the Secretary of 
Defense, after consultation with the United States Trade Representative, 
determines that a foreign country that is party to an agreement 
described in subsection (a) has violated the agreement by discriminating 
against certain types of products produced in the United States that are 
covered by the agreement, the Secretary of Defense shall rescind the 
Secretary's blanket waiver of this chapter with respect to those types 
of products produced in that country.

Sec. 8305. Annual report

  Not later than 60 days after the end of each fiscal year, the 
Secretary of Defense shall submit to Congress a report on the amount of 
purchases by the Department of Defense from foreign entities in that 
fiscal year. The report shall separately indicate the dollar value of 
items for which this chapter was waived pursuant to--
          (1) a reciprocal defense procurement memorandum of 
        understanding described in section 8304(a) of this title;
          (2) the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.); 
        or
          (3) an international agreement to which the United States is a 
        party.

CHAPTER 85--COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY 
                                DISABLED

Sec.
8501.  Definitions.
8502.  Committee for Purchase From People Who Are Blind or Severely 
           Disabled.
8503.  Duties and powers of the Committee.
8504.  Procurement requirements for the Federal Government.
8505.  Audit.
8506.  Authorization of appropriations.

Sec. 8501. Definitions

  In this chapter:
          (1) Blind.--The term ``blind'' refers to an individual or 
        class of individuals whose central visual acuity does not exceed 
        20/200 in the better eye with correcting lenses or whose visual 
        acuity, if better than 20/200, is accompanied by a limit to the 
        field of vision in the better eye to such a degree that its 
        widest diameter subtends an angle of no greater than 20 degrees.
          (2) Committee.--The term ``Committee'' means the Committee for 
        Purchase From People Who Are Blind or Severely Disabled 
        established under section 8502 of this title.

[[Page 124 STAT. 3834]]

          (3) Direct labor.--The term ``direct labor''--
                  (A) includes all work required for preparation, 
                processing, and packing of a product, or work directly 
                relating to the performance of a service; but
                  (B) does not include supervision, administration, 
                inspection, or shipping.
          (4) Entity of the federal government and federal government.--
        The terms ``entity of the Federal Government'' and ``Federal 
        Government'' include an entity of the legislative or judicial 
        branch, a military department or executive agency (as defined in 
        sections 102 and 105 of title 5, respectively), the United 
        States Postal Service, and a nonappropriated fund 
        instrumentality under the jurisdiction of the Armed Forces.
          (5) Other severely disabled.--The term ``other severely 
        disabled'' means an individual or class of individuals under a 
        physical or mental disability, other than blindness, which 
        (according to criteria established by the Committee after 
        consultation with appropriate entities of the Federal Government 
        and taking into account the views of non-Federal Government 
        entities representing the disabled) constitutes a substantial 
        handicap to employment and is of a nature that prevents the 
        individual from currently engaging in normal competitive 
        employment.
          (6) Qualified nonprofit agency for other severely disabled.--
        The term ``qualified nonprofit agency for other severely 
        disabled'' means an agency--
                  (A)(i) organized under the laws of the United States 
                or a State;
                  (ii) operated in the interest of severely disabled 
                individuals who are not blind; and
                  (iii) of which no part of the net income of the agency 
                inures to the benefit of a shareholder or other 
                individual;
                  (B) that complies with any applicable occupational 
                health and safety standard prescribed by the Secretary 
                of Labor; and
                  (C) that in the production of products and in the 
                provision of services (whether or not the products or 
                services are procured under this chapter) during the 
                fiscal year employs blind or other severely disabled 
                individuals for at least 75 percent of the hours of 
                direct labor required for the production or provision of 
                the products or services.
          (7) Qualified nonprofit agency for the blind.--The term 
        ``qualified nonprofit agency for the blind'' means an agency--
                  (A)(i) organized under the laws of the United States 
                or a State;
                  (ii) operated in the interest of blind individuals; 
                and
                  (iii) of which no part of the net income of the agency 
                inures to the benefit of a shareholder or other 
                individual;
                  (B) that complies with any applicable occupational 
                health and safety standard prescribed by the Secretary 
                of Labor; and
                  (C) that in the production of products and in the 
                provision of services (whether or not the products or 
                services are procured under this chapter) during the 
                fiscal year employs blind individuals for at least 75 
                percent of the hours of direct labor required for the 
                production or provision of the products or services.

[[Page 124 STAT. 3835]]

          (8) Severely disabled individual.--The term ``severely 
        disabled individual'' means an individual or class of 
        individuals under a physical or mental disability, other than 
        blindness, which (according to criteria established by the 
        Committee after consultation with appropriate entities of the 
        Federal Government and taking into account the views of non-
        Federal Government entities representing the disabled) 
        constitutes a substantial handicap to employment and is of a 
        nature that prevents the individual from currently engaging in 
        normal competitive employment.
          (9) State.--The term ``State'' includes the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        and the Northern Mariana Islands.

Sec. 8502. Committee for Purchase From People Who Are Blind or Severely 
                        Disabled

  (a) Establishment.--There is a Committee for Purchase From People Who 
Are Blind or Severely Disabled.
  (b) Composition.--The Committee consists of 15 members appointed by 
the President as follows:
          (1) One officer or employee from each of the following, 
        nominated by the head of the department or agency:
                  (A) The Department of Agriculture.
                  (B) The Department of Defense.
                  (C) The Department of the Army.
                  (D) The Department of the Navy.
                  (E) The Department of the Air Force.
                  (F) The Department of Education.
                  (G) The Department of Commerce.
                  (H) The Department of Veterans Affairs.
                  (I) The Department of Justice.
                  (J) The Department of Labor.
                  (K) The General Services Administration.
          (2) One member from individuals who are not officers or 
        employees of the Federal Government and who are conversant with 
        the problems incident to the employment of the blind.
          (3) One member from individuals who are not officers or 
        employees of the Federal Government and who are conversant with 
        the problems incident to the employment of other severely 
        disabled individuals.
          (4) One member from individuals who are not officers or 
        employees of the Federal Government and who represent blind 
        individuals employed in qualified nonprofit agencies for the 
        blind.
          (5) One member from individuals who are not officers or 
        employees of the Federal Government and who represent severely 
        disabled individuals (other than blind individuals) employed in 
        qualified nonprofit agencies for other severely disabled 
        individuals.

  (c) Terms of Office.--Members appointed under paragraph (2), (3), (4), 
or (5) of subsection (b) shall be appointed for terms of 5 years and may 
be reappointed if the member meets the qualifications prescribed by 
those paragraphs.
  (d) Chairman.--The members of the Committee shall elect one of the 
members to be Chairman.
  (e) Vacancy.--

[[Page 124 STAT. 3836]]

          (1) Manner in which filled.--A vacancy in the membership of 
        the Committee shall be filled in the manner in which the 
        original appointment was made.
          (2) Unfulfilled term.--A member appointed under paragraph (2), 
        (3), (4), or (5) of subsection (b) to fill a vacancy occurring 
        prior to the expiration of the term for which the predecessor 
        was appointed shall be appointed only for the remainder of the 
        term. The member may serve after the expiration of a term until 
        a successor takes office.

  (f) Pay and Travel Expenses.--
          (1) Amount to which members are entitled.--Except as provided 
        in paragraph (2), members of the Committee are entitled to 
        receive the daily equivalent of the maximum annual rate of basic 
        pay payable for level IV of the Executive Schedule for each day 
        (including travel-time) during which they perform services for 
        the Committee. A member is entitled to travel expenses, 
        including a per diem allowance instead of subsistence, as 
        provided under section 5703 of title 5.
          (2) Officers or employees of the federal government.--Members 
        who are officers or employees of the Federal Government may not 
        receive additional pay because of their service on the 
        Committee.

   (g) Staff.--
          (1) Appointment and compensation.--Subject to rules the 
        Committee may adopt and to chapters 33 and 51 and subchapter III 
        of chapter 53 of title 5, the Chairman may appoint and fix the 
        pay of personnel the Committee determines are necessary to 
        assist it in carrying out this chapter.
          (2) Personnel from other entities.--On request of the 
        Committee, the head of an entity of the Federal Government may 
        detail, on a reimbursable basis, any personnel of the entity to 
        the Committee to assist it in carrying out this chapter.

  (h) Obtaining Official Information.--The Committee may secure directly 
from an entity of the Federal Government information necessary to enable 
it to carry out this chapter. On request of the Chairman, the head of 
the entity shall furnish the information to the Committee.
  (i) Administrative Support Services.--The Administrator of General 
Services shall provide to the Committee, on a reimbursable basis, 
administrative support services the Committee requests.
  (j) Annual Report.--Not later than December 31 of each year, the 
Committee shall transmit to the President a report that includes the 
names of the Committee members serving in the prior fiscal year, the 
dates of Committee meetings in that year, a description of the 
activities of the Committee under this chapter in that year, and any 
recommendations for changes in this chapter which the Committee 
determines are necessary.

Sec. 8503. Duties and powers of the Committee

  (a) Procurement List.--
          (1) Maintenance of list.--The Committee shall maintain and 
        publish in the Federal Register a procurement list. The list 
        shall include the following products and services determined by 
        the Committee to be suitable for the Federal Government to 
        procure pursuant to this chapter:
                  (A) Products produced by a qualified nonprofit agency 
                for the blind or by a qualified nonprofit agency for 
                other severely disabled.

[[Page 124 STAT. 3837]]

                  (B) The services those agencies provide.
          (2) Changes to list.--The Committee may, by rule made in 
        accordance with the requirements of section 553(b) to (e) of 
        title 5, add to and remove from the procurement list products so 
        produced and services so provided.

  (b) Fair Market Price.--The Committee shall determine the fair market 
price of products and services contained on the procurement list that 
are offered for sale to the Federal Government by a qualified nonprofit 
agency for the blind or a qualified nonprofit agency for other severely 
disabled. The Committee from time to time shall revise its price 
determinations with respect to those products and services in accordance 
with changing market conditions.
  (c) Central Nonprofit Agency or Agencies.--The Committee shall 
designate a central nonprofit agency or agencies to facilitate the 
distribution, by direct allocation, subcontract, or any other means, of 
orders of the Federal Government for products and services on the 
procurement list among qualified nonprofit agencies for the blind or 
qualified nonprofit agencies for other severely disabled.
  (d) Regulations.--The Committee--
          (1) may prescribe regulations regarding specifications for 
        products and services on the procurement list, the time of their 
        delivery, and other matters as necessary to carry out this 
        chapter; and
          (2) shall prescribe regulations providing that when the 
        Federal Government purchases products produced and offered for 
        sale by qualified nonprofit agencies for the blind or qualified 
        nonprofit agencies for other severely disabled, priority shall 
        be given to products produced and offered for sale by qualified 
        nonprofit agencies for the blind.

  (e) Study and Evaluation of Activities.--The Committee shall make a 
continuing study and evaluation of its activities under this chapter to 
ensure effective and efficient administration of this chapter. The 
Committee on its own or in cooperation with other public or nonprofit 
private agencies may study--
          (1) problems related to the employment of the blind and other 
        severely disabled individuals; and
          (2) the development and adaptation of production methods that 
        would enable a greater utilization of the blind and other 
        severely disabled individuals.

Sec. 8504. Procurement requirements for the Federal Government

  (a) In General.--An entity of the Federal Government intending to 
procure a product or service on the procurement list referred to in 
section 8503 of this title shall procure the product or service from a 
qualified nonprofit agency for the blind or a qualified nonprofit agency 
for other severely disabled in accordance with regulations of the 
Committee and at the price the Committee establishes if the product or 
service is available within the period required by the entity.
  (b) Exception.--This section does not apply to the procurement of a 
product that is available from an industry established under chapter 307 
of title 18 and that is required under section 4124 of title 18 to be 
procured from that industry.

[[Page 124 STAT. 3838]]

Sec. 8505. Audit

  For the purpose of audit and examination, the Comptroller General 
shall have access to the books, documents, papers, and other records 
of--
          (1) the Committee and of each central nonprofit agency the 
        Committee designates under section 8503(c) of this title; and
          (2) qualified nonprofit agencies for the blind and qualified 
        nonprofit agencies for other severely disabled that have sold 
        products or services under this chapter to the extent those 
        books, documents, papers, and other records relate to the 
        activities of the agency in a fiscal year in which a sale was 
        made under this chapter.

Sec. 8506. Authorization of appropriations

  Necessary amounts may be appropriated to the Committee to carry out 
this chapter.

                          CHAPTER 87--KICKBACKS

Sec.
8701.  Definitions.
8702.  Prohibited conduct.
8703.  Contractor responsibilities.
8704.  Inspection authority.
8705.  Administrative offsets.
8706.  Civil actions.
8707.  Criminal penalties.

Sec. 8701. Definitions

  In this chapter:
          (1) Contracting agency.--The term ``contracting agency'', when 
        used with respect to a prime contractor, means a department, 
        agency, or establishment of the Federal Government that enters 
        into a prime contract with a prime contractor.
          (2) Kickback.--The term ``kickback'' means any money, fee, 
        commission, credit, gift, gratuity, thing of value, or 
        compensation of any kind that is provided to a prime contractor, 
        prime contractor employee, subcontractor, or subcontractor 
        employee to improperly obtain or reward favorable treatment in 
        connection with a prime contract or a subcontract relating to a 
        prime contract.
          (3) Person.--The term ``person'' means a corporation, 
        partnership, business association of any kind, trust, joint-
        stock company, or individual.
          (4) Prime contract.--The term ``prime contract'' means a 
        contract or contractual action entered into by the Federal 
        Government to obtain supplies, materials, equipment, or services 
        of any kind.
          (5) Prime contractor.--The term ``prime contractor'' means a 
        person that has entered into a prime contract with the Federal 
        Government.
          (6) Prime contractor employee.--The term ``prime contractor 
        employee'' means an officer, partner, employee, or agent of a 
        prime contractor.
          (7) Subcontract.--The term ``subcontract'' means a contract or 
        contractual action entered into by a prime contractor or 
        subcontractor to obtain supplies, materials, equipment, or 
        services of any kind under a prime contract.
          (8) Subcontractor.--The term ``subcontractor''--

[[Page 124 STAT. 3839]]

                  (A) means a person, other than the prime contractor, 
                that offers to furnish or furnishes supplies, materials, 
                equipment, or services of any kind under a prime 
                contract or a subcontract entered into in connection 
                with the prime contract; and
                  (B) includes a person that offers to furnish or 
                furnishes general supplies to the prime contractor or a 
                higher tier subcontractor.
          (9) Subcontractor employee.--The term ``subcontractor 
        employee'' means an officer, partner, employee, or agent of a 
        subcontractor.

Sec. 8702. Prohibited conduct

  A person may not--
          (1) provide, attempt to provide, or offer to provide a 
        kickback;
          (2) solicit, accept, or attempt to accept a kickback; or
          (3) include the amount of a kickback prohibited by paragraph 
        (1) or (2) in the contract price--
                  (A) a subcontractor charges a prime contractor or a 
                higher tier subcontractor; or
                  (B) a prime contractor charges the Federal Government.

Sec. 8703. Contractor responsibilities

  (a) Requirements Included in Contracts.--Each contracting agency shall 
include in each prime contract awarded by the agency a requirement that 
the prime contractor shall--
          (1) have in place and follow reasonable procedures designed to 
        prevent and detect violations of section 8702 of this title in 
        its own operations and direct business relationships; and
          (2) cooperate fully with a Federal Government agency 
        investigating a violation of section 8702 of this title.

  (b) Full Cooperation Required.--Notwithstanding subsection (d), a 
prime contractor shall cooperate fully with a Federal Government agency 
investigating a violation of section 8702 of this title.
  (c) Reporting Requirement.--
          (1) In general.--A prime contractor or subcontractor that has 
        reasonable grounds to believe that a violation of section 8702 
        of this title may have occurred shall promptly report the 
        possible violation in writing to the inspector general of the 
        contracting agency, the head of the contracting agency if the 
        agency does not have an inspector general, or the Attorney 
        General.
          (2) Supplying information as favorable evidence.--In an 
        administrative or contractual action to suspend or debar a 
        person who is eligible to enter into contracts with the Federal 
        Government, evidence that the person has supplied information to 
        the Federal Government pursuant to paragraph (1) is favorable 
        evidence of the person's responsibility for the purposes of 
        Federal procurement laws and regulations.

  (d) Inapplicability to Certain Prime Contracts.--Subsection (a) does 
not apply to a prime contract--
          (1) that is not greater than $100,000; or
          (2) for the acquisition of commercial items (as defined in 
        section 103 of this title).

Sec. 8704. Inspection authority

  (a) In General.--To ascertain whether there has been a violation of 
section 8702 of this title with respect to a prime contract, the

[[Page 124 STAT. 3840]]

Comptroller General and the inspector general of the contracting agency, 
or a representative of the contracting agency designated by the head of 
the agency if the agency does not have an inspector general, shall have 
access to and may inspect the facilities and audit the books and 
records, including electronic data or records, of a prime contractor or 
subcontractor under a prime contract awarded by the agency.
  (b) Exception.--This section does not apply to a prime contract for 
the acquisition of commercial items (as defined in section 103 of this 
title).

Sec. 8705. Administrative offsets

  (a) Definition.--In this section, the term ``contracting officer'' has 
the meaning given that term in chapter 71 of this title.
  (b) Offset Authority.--A contracting officer of a contracting agency 
may offset the amount of a kickback provided, accepted, or charged in 
violation of section 8702 of this title against amounts the Federal 
Government owes the prime contractor under the prime contract to which 
the kickback relates.
  (c) Duties of Prime Contractor.--
          (1) Withholding and paying over or retaining amounts.--On 
        direction of a contracting officer of a contracting agency with 
        respect to a prime contract, the prime contractor shall withhold 
        from amounts owed to a subcontractor under a subcontract of the 
        prime contract the amount of a kickback which was or may be 
        offset against the prime contractor under subsection (b). The 
        contracting officer may order that amounts withheld--
                  (A) be paid over to the contracting agency; or
                  (B) be retained by the prime contractor if the Federal 
                Government has already offset the amount against the 
                prime contractor.
          (2) Notice.--The prime contractor shall notify the contracting 
        officer when an amount is withheld and retained under paragraph 
        (1)(B).

  (d) Offset, Direction, or Order is Claim of Federal Government.--An 
offset under subsection (b) or a direction or order of a contracting 
officer under subsection (c) is a claim by the Federal Government for 
the purposes of chapter 71 of this title.

Sec. 8706. Civil actions

  (a) Amount.--The Federal Government in a civil action may recover from 
a person--
          (1) that knowingly engages in conduct prohibited by section 
        8702 of this title a civil penalty equal to--
                  (A) twice the amount of each kickback involved in the 
                violation; and
                  (B) not more than $10,000 for each occurrence of 
                prohibited conduct; and
          (2) whose employee, subcontractor, or subcontractor employee 
        violates section 8702 of this title by providing, accepting, or 
        charging a kickback a civil penalty equal to the amount of that 
        kickback.

  (b) Statute of Limitations.--A civil action under this section must be 
brought within 6 years after the later of the date on which--
          (1) the prohibited conduct establishing the cause of action 
        occurred; or

[[Page 124 STAT. 3841]]

          (2) the Federal Government first knew or should reasonably 
        have known that the prohibited conduct had occurred.

Sec. 8707. Criminal penalties

  A person that knowingly and willfully engages in conduct prohibited by 
section 8702 of this title shall be fined under title 18, imprisoned for 
not more than 10 years, or both.

SEC. 4. CONFORMING AMENDMENT.

  Section 2410i(b)(1) of title 10, United States Code, is amended by 
striking ``small purchase threshold'' and substituting ``simplified 
acquisition threshold''.

SEC. 5. CONFORMING CROSS-REFERENCES.

  (a) Title 5.--Title 5, United States Code, is amended as follows:
          (1) In section 504(b)(1)(C)(ii)--
                  (A) strike ``section 6 of the Contract Disputes Act of 
                1978 (41 U.S.C. 605)'' and substitute ``section 7103 of 
                title 41''; and
                  (B) strike ``section 8 of that Act (41 U.S.C. 607)'' 
                and substitute ``section 7105 of title 41''.
          (2) In section 551(1)(H), strike ``chapter 2 of title 41;''.
          (3) In section 701(b)(1)(H), strike ``chapter 2 of title 
        41;''.
          (4) In section 3109(b)(3), strike ``section 5'' and substitute 
        ``section 6101(b) to (d)''.
          (5) In section 3374(c)(2), strike ``section 27 of the Office 
        of Federal Procurement Policy Act'' and substitute ``chapter 21 
        of title 41''.
          (6) In section 3704(b)(2)(G), strike ``section 27 of the 
        Office of Federal Procurement Policy Act'' and substitute 
        ``chapter 21 of title 41''.
          (7) In section 4105, strike ``section 5'' and substitute 
        ``section 6101(b) to (d)''.
          (8) In section 5102(c)(30), strike ``section 8 of the Contract 
        Disputes Act of 1978'' and substitute ``section 7105(a)(2), 
        (c)(2), or (d)(2) of title 41''.
          (9) In section 5372a--
                  (A) in subsection (a)(1)--
                        (i) strike ``section 8 of the Contract Disputes 
                      Act of 1978'' and substitute ``section 7105(a)(2), 
                      (c)(2), or (d)(2) of title 41''; and
                        (ii) strike ``section 42 of the Office of 
                      Federal Procurement Policy Act'' and substitute 
                      ``section 7105(b)(2) of title 41''; and
                  (B) in subsection (a)(2), strike ``section 8 of the 
                Contract Disputes Act of 1978'' and substitute ``section 
                7105(a)(1), (c)(1), or (d)(1) of title 41''.
          (10) In section 7342(e)(1), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (11) In section 8709(a), strike ``section 5'' and substitute 
        ``section 6101(b) to (d)''.
          (12) In section 8714a(a), strike ``section 5'' and substitute 
        ``section 6101(b) to (d)''.
          (13) In section 8714b(a), strike ``section 5'' and substitute 
        ``section 6101(b) to (d)''.

[[Page 124 STAT. 3842]]

          (14) In section 8714c(a), strike ``section 5'' and substitute 
        ``section 6101(b) to (d)''.
          (15) In section 8902(a), strike ``section 5'' and substitute 
        ``section 6101(b) to (d)''.
          (16) In section 8953(a)(1), strike ``section 5'' and 
        substitute ``section 6101(b) to (d)''.
          (17) In section 8983(a)(1), strike ``section 5'' and 
        substitute ``section 6101(b) to (d)''.
          (18) In section 9003--
                  (A) in subsection (a), strike ``section 5'' and 
                substitute ``section 6101(b) to (d)'';
                  (B) in subsection (c)(3), before subparagraph (A), 
                strike ``the Contract Disputes Act of 1978'' and 
                substitute ``chapter 71 of title 41'';
                  (C) in subsection (c)(3)(A), strike ``(after 
                appropriate arrangements, as described in section 8(c) 
                of such Act)''; and
                  (D) in subsection (c)(3)(B), strike ``section 10(a)(1) 
                of such Act'' and substitute ``section 7104(b)(1) of 
                title 41''.
          (19) In section 9009, strike ``section 26(f) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 422(f))'' and 
        substitute ``section 1502(a) and (b) of title 41''.

  (b) Title 10.--Title 10, United States Code, is amended as follows:
          (1) In section 133(c)(1), strike ``section 16(c) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 414(c))'' and 
        substitute ``section 1702(c) of title 41''.
          (2) In section 2013(a), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b)-(d) of 
        title 41''.
          (3) In section 2194(b)(2), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (4) In section 2201--
                  (A) in subsection (b), strike ``section 3732(a) of the 
                Revised Statutes (41 U.S.C. 11(a))'' and substitute 
                ``section 6301(a) and (b)(1)-(3) of title 41''; and
                  (B) in subsection (c), strike ``section 3732(a) of the 
                Revised Statutes (41 U.S.C. 11(a))'' and substitute 
                ``section 6301(a) and (b)(1)-(3) of title 41''.
          (5) In section 2207(b), strike ``section 4(11) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(11))'' and 
        substitute ``section 134 of title 41''.
          (6) In section 2225(f)--
                  (A) in paragraph (1), strike ``section 16(c) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                414(c))'' and substitute ``section 1702(c) of title 
                41''; and
                  (B) in paragraph (2), strike ``section 4(11) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                403(11))'' and substitute ``section 134 of title 41''.
          (7) In section 2226(b), strike ``section 4(12) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(12))'' and 
        substitute ``section 103 of title 41''.
          (8) In section 2302--
                  (A) in paragraph (3), strike ``section 4 of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 403)'' and 
                substitute ``chapter 1 of title 41'';

[[Page 124 STAT. 3843]]

                  (B) in paragraph (6), strike ``section 25(c)(1) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                421(c)(1))'' and substitute ``section 1303(a)(1) of 
                title 41''; and
                  (C) in paragraph (7), strike ``section 4 of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 403)'' and 
                substitute ``section 134 of title 41''.
          (9) In section 2302a--
                  (A) in subsection (a), strike ``section 4(11) of the 
                Office of Federal Procurement Policy Act'' and 
                substitute ``section 134 of title 41''; and
                  (B) in subsection (b), strike ``section 33 of the 
                Office of Federal Procurement Policy Act'' and 
                substitute ``section 1905 of title 41''.
          (10) In section 2302b, strike ``section 31 of the Office of 
        Federal Procurement Policy Act'' and substitute ``section 1901 
        of title 41''.
          (11) In section 2302c--
                  (A) in subsection (a)(1), strike ``section 30 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                426)'' and substitute ``section 2301 of title 41''; and
                  (B) in subsection (b), strike ``section 16(c) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                414(c))'' and substitute ``section 1702(c) of title 
                41''.
          (12) In section 2304--
                  (A) in subsection (f)(1)(B)(iii), strike ``section 
                16(c) of the Office of Federal Procurement Policy Act 
                (41 U.S.C. 414(c))'' and substitute ``section 1702(c) of 
                title 41'';
                  (B) in subsection (f)(1)(C), strike ``section 18 of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                416)'' and substitute ``section 1708 of title 41'';
                  (C) in subsection (f)(2)(D), strike ``the Javits-
                Wagner-O'Day Act (41 U.S.C. 46 et seq.)'' and substitute 
                ``chapter 85 of title 41'';
                  (D) in subsection (g)(4), strike ``section 31(f) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                427)'' and substitute ``section 1901(e) of title 41''; 
                and
                  (E) in subsection (h)(1), strike ``The Walsh-Healey 
                Act (41 U.S.C. 35 et seq.)'' and substitute ``Chapter 65 
                of title 41''.
          (13) In section 2304b--
                  (A) in subsection (c), strike ``section 18 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                416)'' and substitute ``section 1708 of title 41''; and
                  (B) in subsection (f)(3), strike ``section 18 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                416)'' and substitute ``section 1708 of title 41''.
          (14) In section 2304c(a)(1), strike ``section 18 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 416)'' and 
        substitute ``section 1708 of title 41''.
          (15) In section 2306a(h)(3), strike ``section 4(12) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(12))'' 
        and substitute ``section 103 of title 41''.
          (16) In section 2314, strike ``Sections 3709 and 3735 of the 
        Revised Statutes (41 U.S.C. 5 and 13)'' and substitute 
        ``Sections 6101(b)-(d) and 6304 of title 41''.
          (17) In section 2318--

[[Page 124 STAT. 3844]]

                  (A) in subsection (a)(1), strike ``section 20(a) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                418(a))'' and substitute ``section 1705(a) of title 
                41''; and
                  (B) in subsection (a)(2), strike ``sections 20(b) and 
                20(c) of the Office of Federal Procurement Policy Act 
                (41 U.S.C. 418(b), (c))'' and substitute ``section 
                1705(b) and (c) of title 41''.
          (18) In section 2321(h), strike ``the Contract Disputes Act of 
        1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 of 
        title 41''.
          (19) In section 2324--
                  (A) in subsection (d)(1), strike ``section 6 of the 
                Contract Disputes Act of 1978 (41 U.S.C. 605)'' and 
                substitute ``section 7103 of title 41'';
                  (B) in subsection (d)(2), strike ``section 7 of such 
                Act (41 U.S.C. 606)'' and substitute ``section 7104(a) 
                of title 41'';
                  (C) in subsection (e)(1)(P), strike ``section 39 of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                435)'' and substitute ``section 1127 of title 41''; and
                  (D) in subsection (e)(2)(C), strike ``(41 U.S.C. 10b-
                1)'' and substitute ``(as added by section 7002(2) of 
                the Omnibus Trade and Competitiveness Act of 1988)''.
          (20) In section 2343, strike ``section 3741 of the Revised 
        Statutes (41 U.S.C. 22)'' and substitute ``section 6306 of title 
        41''.
          (21) In section 2375(b), strike ``section 34 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 430)'' and substitute 
        ``section 1906 of title 41''.
          (22) In section 2376(1), strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``chapter 1 of title 41''.
          (23) In section 2384--
                  (A) in subsection (b)(2), strike ``section 4(12) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                403(12)))'' and substitute ``section 103 of title 41)''; 
                and
                  (B) in subsection (b)(3), strike ``section 4(11) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                403(11)))'' and substitute ``section 134 of title 41)''.
          (24) In section 2393(d)--
                  (A) strike ``section 4(11) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 403(11)))'' and 
                substitute ``section 134 of title 41)''; and
                  (B) strike ``section 4(12) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 403(12)))'' and 
                substitute ``section 103 of title 41)''.
          (25) In section 2402--
                  (A) in subsection (c), strike ``section 4(11) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                403(11)))'' and substitute ``section 134 of title 41)''; 
                and
                  (B) in subsection (d)(2), strike ``section 4(12) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                403(12))'' and substitute ``section 103 of title 41''.
          (26) In section 2408--
                  (A) in subsection (a)(4)(A), strike ``section 4(11) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                403(11)))'' and substitute ``section 134 of title 41)''; 
                and

[[Page 124 STAT. 3845]]

                  (B) in subsection (a)(4)(B), strike ``section 4(12) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                403(12)))'' and substitute ``section 103 of title 41)''.
          (27) In section 2410(c), strike ``section 4(11) of the Office 
        of Federal Procurement Policy Act'' and substitute ``section 134 
        of title 41''.
          (28) In section 2410b(c), strike ``section 4(12) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(12)))'' and 
        substitute ``section 103 of title 41)''.
          (29) In section 2410d--
                  (A) in subsection (b)(2)(A), strike ``section 5(3) of 
                the Javits-Wagner-O'Day Act (41 U.S.C. 48b(3))'' and 
                substitute ``section 8501(7) of title 41'';
                  (B) in subsection (b)(2)(B), strike ``handicapped, as 
                defined in section 5(4) of such Act (41 U.S.C. 48b(4))'' 
                and substitute ``disabled, as defined in section 8501(6) 
                of title 41''; and
                  (C) in subsection (b)(2)(C), strike ``section 2(c) of 
                such Act (41 U.S.C. 47(c))'' and substitute ``section 
                8503(c) of title 41''.
          (30) In section 2410g(d)(1), strike ``section 4(12) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(12)))'' 
        and substitute ``section 103 of title 41)''.
          (31) In section 2410i(b)(1), strike ``section 4(11) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(11)))'' 
        and substitute ``section 134 of title 41)''.
          (32) In section 2410m--
                  (A) in subsection (a), before paragraph (1), strike 
                ``the Contract Disputes Act of 1978 (41 U.S.C. 601 et 
                seq.)'' and substitute ``chapter 71 of title 41'';
                  (B) in subsection (a)(2), strike ``section 7 of such 
                Act (41 U.S.C. 606)'' and substitute ``section 7104(a) 
                of title 41''; and
                  (C) in subsection (b)(1)(A), strike ``section 10(a) of 
                the Contract Disputes Act of 1978 (41 U.S.C. 609(a))'' 
                and substitute ``section 7104(b) of title 41''.
          (33) In section 2457(e), strike ``section 2 of the Buy 
        American Act (41 U.S.C. 10a)'' and substitute ``section 8302 of 
        title 41''.
          (34) In section 2461(c)(1), strike ``section 2 of the Javits-
        Wagner-O'Day Act (41 U.S.C. 47)'' and substitute ``section 8503 
        of title 41''.
          (35) In section 2485(b)(1), strike ``section 4(6) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(6))'' 
        and substitute ``section 107 of title 41''.
          (36) In the chapter analysis for subchapter V of chapter 148, 
        in the item for section 2533, strike ``the Buy American Act'' 
        and substitute ``chapter 83 of title 41''.
          (37) In section 2533--
                  (A) in the section catchline, strike ``the Buy 
                American Act'' and substitute ``chapter 83 of title 
                41''; and
                  (B) in subsection (a), strike ``section 2 of the Buy 
                American Act (41 U.S.C. 10a)'' and substitute ``section 
                8302 of title 41''.
          (38) In section 2533a(i), strike ``section 34 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 430)'' and substitute 
        ``section 1906 of title 41''.
          (39) In section 2533b--

[[Page 124 STAT. 3846]]

                  (A) in subsection (h), strike ``section 34 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                430)'' and substitute ``section 1906 of title 41''; and
                  (B) in subsection (j), strike ``section 4 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                403)'' and substitute ``section 105 of title 41''.
          (40) In section 2534(g)(2), strike ``section 33 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 429)'' and 
        substitute ``section 1905 of title 41''.
          (41) In section 2562(a)(1), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (42) In section 2576(a), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (43) In section 2636(b)(3), strike ``section 4(11) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(11))'' 
        and substitute ``section 134 of title 41''.
          (44) In section 2667(f)(1), strike ``Notwithstanding 
        subsection (a)(3) or subtitle I of title 40 and title III of the 
        Federal Property and Administrative Services Act of 1949 (to the 
        extent subtitle I and title III are inconsistent with this 
        subsection)'' and substitute ``Notwithstanding subtitle I of 
        title 40 and division C (except sections 3302, 3501(b), 3509, 
        3906, 4710, and 4711) of subtitle I of title 41 (to the extent 
        those provisions are inconsistent with this subsection) or 
        subsection (a)(2) of this section''.
          (45) In section 2664(a), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949, as amended (41 
        U.S.C. 251 et seq.)'' and substitute ``division C (except 
        sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle 
        I of title 41''.
          (46) In section 2691(b), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (47) In section 2696(a), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (48) In section 2836(g), strike ``the Contract Disputes Act of 
        1978 (41 U.S.C. 601 et seq.)'' and substitute ``chapter 71 of 
        title 41''.
          (49) In section 2854a(d)(1), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (50) In section 2878(d)(2), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (51) In the chapter analysis for chapter 633, in the item for 
        section 7299, strike ``Walsh-Healey Act'' and substitute 
        ``chapter 65 of title 41''.
          (52) In section 7299--
                  (A) in the heading, strike ``Walsh-Healey Act'' and 
                substitute ``chapter 65 of title 41''; and

[[Page 124 STAT. 3847]]

                  (B) strike ``the Walsh-Healey Act (41 U.S.C. 35 et 
                seq.)'' and substitute ``chapter 65 of title 41''.
          (53) In section 7305(d)--
                  (A) strike ``title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 251 et 
                seq.)'' and substitute ``division C (except sections 
                3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I 
                of title 41''; and
                  (B) strike ``under subtitle I of title 40 and such 
                title III'' and substitute ``under those provisions''.
          (54) In section 9444(b)(1), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (55) In section 9781(g), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.

  (c) Title 14.--Title 14, United States Code, is amended as follows:
          (1) In section 92(d), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (2) In section 93(h), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (3) In section 641(a), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (4) In section 685(c)(1), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.

  (d) Title 18.--Title 18, United States Code, is amended as follows:
          (1) In section 3672, strike ``section 3709 of the Revised 
        Statutes of the United States'' and substitute ``section 6101(b) 
        to (d) of title 41''.
          (2) In section 4124(c), strike ``section 6(d)(4) of the Office 
        of Federal Procurement Policy Act'' and substitute ``section 
        1122(a)(4) of title 41''.

  (e) Title 23.--Title 23, United States Code, is amended as follows:
          (1) In section 140--
                  (A) in subsection (b), strike ``section 3709 of the 
                Revised Statutes, as amended (41 U.S.C. 5),'' and 
                substitute ``section 6101(b) to (d) of title 41''; and
                  (B) in subsection (c)--
                        (i) strike ``section 3709 of the Revised 
                      Statutes, as amended (41 U.S.C. 5),'' and 
                      substitute ``section 6101(b) to (d) of title 41''; 
                      and
                        (ii) strike ``section 302(e) of the Federal 
                      Property and Administrative Services Act of 1949 
                      (41 U.S.C. 252(e))'' and substitute ``section 3106 
                      of title 41''.
          (2) In section 502(c)(5), strike ``Section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) 
        of title 41''.

[[Page 124 STAT. 3848]]

  (f) The Internal Revenue Code of 1986.--Section 7608(c)(1) of the 
Internal Revenue Code of 1986 (26 U.S.C. 7608(c)(1)) is amended--
          (1) in subparagraph (A)(i)(II), by striking ``sections 11(a) 
        and 22'' and substituting ``sections 6301(a) and (b)(1)-(3) and 
        6306'';
          (2) in subparagraph (A)(i)(III), by striking ``section 255'' 
        and substituting ``chapter 45''; and
          (3) in subparagraph (A)(i)(V), by striking ``section 254(a) 
        and (c)'' and substituting ``section 3901''.

  (g) Title 28.--Title 28, United States Code, is amended as follows:
          (1) In the last sentence of section 524(c)(1), strike 
        ``section 3709 of the Revised Statutes of the United States (41 
        U.S.C. 5), title III of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 251 and following)'' and 
        substitute ``division C (except sections 3302, 3501(b), 3509, 
        3906, 4710, and 4711) of subtitle I of title 41, section 6101(b) 
        to (d) of title 41''.
          (2) In section 604(a)(10)(C), strike ``section 3709 of the 
        Revised Statutes of the United States (41 U.S.C. 5)'' and 
        substitute ``section 6101(b) to (d) of title 41''.
          (3) In section 624(3), strike ``section 3709 of the Revised 
        Statutes, as amended (41 U.S.C. 5)'' and substitute ``section 
        6101(b) to (d) of title 41''.
          (4) In section 753(g), strike ``section 3709 of the Revised 
        Statutes of the United States, as amended (41 U.S.C. 5)'' and 
        substitute ``section 6101(b) to (d) of title 41''.
          (5) In section 1295--
                  (A) in subsection (a)(10), strike ``section 8(g)(1) of 
                the Contract Disputes Act of 1978 (41 U.S.C. 
                607(g)(1))'' and substitute ``section 7107(a)(1) of 
                title 41'';
                  (B) in subsection (b), strike ``section 10(b) of the 
                Contract Disputes Act of 1978 (41 U.S.C. 609(b))'' and 
                substitute ``section 7107(b) of title 41''; and
                  (C) in subsection (c), strike ``section 10(b) of the 
                Contract Disputes Act of 1978'' and substitute ``section 
                7107(b) of title 41''.
          (6) In section 1346(a)(2), strike ``sections 8(g)(1) and 
        10(a)(1) of the Contract Disputes Act of 1978'' and substitute 
        ``sections 7104(b)(1) and 7107(a)(1) of title 41''.
          (7) In section 1491(a)(2), strike ``section 10(a)(1) of the 
        Contract Disputes Act of 1978'' and substitute ``section 
        7104(b)(1) of title 41''.
          (8) In section 2401(a), strike ``the Contract Disputes Act of 
        1978'' and substitute ``chapter 71 of title 41''.
          (9) In section 2412--
                  (A) in subsection (d)(2)(E), strike ``the Contract 
                Disputes Act of 1978'' and substitute ``chapter 71 of 
                title 41''; and
                  (B) in subsection (d)(3), strike ``the Contract 
                Disputes Act of 1978'' and substitute ``chapter 71 of 
                title 41''.
          (10) In section 2414, strike ``the Contract Disputes Act of 
        1978'' and substitute ``chapter 71 of title 41''.
          (11) In section 2517(a), strike ``the Contract Disputes Act of 
        1978'' and substitute ``chapter 71 of title 41''.

  (h) Title 31.--Title 31, United States Code, is amended as follows:
          (1) In section 506, strike ``section 5(a) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 404(a))'' and 
        substitute ``section 1101(a) of title 41''.

[[Page 124 STAT. 3849]]

          (2) In section 731(i)(7), strike ``section 27 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 423)'' and substitute 
        ``chapter 21 of title 41''.
          (3) In section 781(c)(1), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) 
        of title 41''.
          (4) Section 1344(h)(2)(A) is amended to read as follows:
                  ``(A) a department--
                        ``(i) including independent establishments, 
                      other agencies, and wholly owned Government 
                      corporations; but
                        ``(ii) not including the Senate, House of 
                      Representatives, or Architect of the Capitol, or 
                      the officers or employees thereof;''.
          (5) In section 3567, strike ``section 4(1) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(1))'' and 
        substitute ``section 133 of title 41''.
          (6) In section 3718(b)(1)(A), strike ``title III of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 251 and following)'' and substitute ``division C (except 
        sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle 
        I of title 41''.
          (7) In section 3902(a), strike ``section 12 of the Contract 
        Disputes Act of 1978 (41 U.S.C. 611)'' and substitute ``section 
        7109(a)(1) and (b) of title 41''.
          (8) In section 3907--
                  (A) in subsection (a), strike ``section 6 of the 
                Contract Disputes Act of 1978 (41 U.S.C. 605)'' and 
                substitute ``section 7103 of title 41'';
                  (B) in subsection (b)(1)(A), strike ``the Contract 
                Disputes Act of 1978 (41 U.S.C. 601 et seq.)'' and 
                substitute ``chapter 71 of title 41'';
                  (C) in subsection (b)(2)--
                        (i) strike ``section 12 of the Contract Disputes 
                      Act of 1978 (41 U.S.C. 611)'' and substitute 
                      ``section 7109(a)(1) and (b) of title 41''; and
                        (ii) in the second sentence, strike ``section 
                      12'' and substitute ``section 7109(a)(1) and 
                      (b)''; and
                  (D) in subsection (c), strike ``the Contract Disputes 
                Act of 1978 (41 U.S.C. 601 et seq.)'' and substitute 
                ``chapter 71 of title 41''.
          (9) In section 6202(c)(2), strike ``section 6(d)(5) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(5))'' 
        and substitute ``section 1122(a)(4) of title 41''.
          (10) In section 9703(b)(3), as added by section 638(b)(1) of 
        the Act of October 6, 1992 (Public Law 102-393, 106 Stat. 1779), 
        strike ``section 3709 of the Revised Statutes of the United 
        States (41 U.S.C. 5), title III of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)'' 
        and substitute ``division C (except sections 3302, 3501(b), 
        3509, 3906, 4710, and 4711) of subtitle I of title 41, section 
        6101(b) to (d) of title 41''.

  (i) Title 35.--Title 35, United States Code, is amended as follows:
          (1) In section 2(b)(4)(A), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.

[[Page 124 STAT. 3850]]

          (2) In section 203(b), strike ``the Contract Disputes Act (41 
        U.S.C. Sec. 601 et seq.)'' and substitute ``chapter 71 of title 
        41''.

  (j) Title 38.--Title 38, United States Code, is amended as follows:
          (1) In section 1720(c)(2), strike ``section 2(b)(1) of the 
        Service Contract Act of 1965 (41 U.S.C. 351(b)(1))'' and 
        substitute ``section 6704(a) of title 41''.
          (2) In section 1966(a), strike ``section 3709 of the Revised 
        Statutes, as amended (41 U.S.C. 5)'' and substitute ``section 
        6101(b) to (d) of title 41''.
          (3) In section 3720(b), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (4) In section 7317(f), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) 
        of title 41''.
          (5) In section 7802(f), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) 
        of title 41''.
          (6) In section 8122--
                  (A) in subsection (a)(1), strike ``section 3709 of the 
                Revised Statutes (41 U.S.C. 5)'' and substitute 
                ``section 6101(b) to (d) of title 41''; and
                  (B) in subsection (c)--
                        (i) strike ``(41 U.S.C. 252(c))''; and
                        (ii) strike ``section 304 of that Act (41 U.S.C. 
                      254)'' and substitute ``sections 3901 and 3905 of 
                      title 41''.
          (7) In section 8127--
                  (A) in subsection (b), strike ``section 4 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                403)'' and substitute ``section 134 of title 41''; and
                  (B) in subsection (c)(2), strike ``section 4 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                403)'' and substitute ``section 134 of title 41''.
          (8) In section 8153(a)--
                  (A) in paragraph (3)(B)(ii), strike ``section 22 of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                418b)'' and substitute ``section 1707 of title 41''; and
                  (B) in paragraph (3)(D), strike ``section 303(f) of 
                the Federal Property and Administrative Services Act of 
                1949 (41 U.S.C. 253(f))'' and substitute ``section 
                3304(e) of title 41''.
          (9) In section 8201(e), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) 
        of title 41''.

  (k) Title 39.--Section 410(b) of title 39, United States Code, is 
amended by striking paragraph (5) and substituting--
          ``(5) chapters 65 and 67 of title 41;''.

  (l) Title 40.--Title 40, United States Code, is amended as follows:
          (1) In the chapter analysis for chapter 1, in item 111, strike 
        ``Federal Property and Administrative Services Act of 1949'' and 
        substitute ``division C (except sections 3302, 3501(b), 3509, 
        3906, 4710, and 4711) of subtitle I of title 41''.
          (2) In section 102, before paragraph (1), strike ``title III 
        of the Federal Property and Administrative Services Act of 1949 
        (41 U.S.C. 251 et seq.)'' and substitute ``division C (except 
        sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle 
        I of title 41''.
          (3) In section 111--

[[Page 124 STAT. 3851]]

                  (A) in the section catchline, strike ``Federal 
                Property and Administrative Services Act of 1949'' and 
                substitute ``division C (except sections 3302, 3501(b), 
                3509, 3906, 4710, and 4711) of subtitle I of title 41''; 
                and
                  (B) before paragraph (1), strike ``title III of the 
                Federal Property and Administrative Services Act of 1949 
                (41 U.S.C. 251 et seq.)'' and substitute ``division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41''.
          (4) In section 113(b)--
                  (A) in the heading, strike ``the Office of Federal 
                Procurement Policy Act'' and substitute ``Division B 
                (Except Sections 1704 and 2303) of Subtitle I of Title 
                41''; and
                  (B) strike ``the Office of Federal Procurement Policy 
                Act (41 U.S.C. 401 et seq.)'' and substitute ``division 
                B (Except Sections 1704 and 2303) of subtitle I of title 
                41''.
          (5) In section 311--
                  (A) in subsection (a), strike ``title III of the 
                Federal Property and Administrative Services Act of 1949 
                (41 U.S.C. 251 et seq.)'' and substitute ``division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41''; and
                  (B) in subsection (b), strike ``title III of the 
                Federal Property and Administrative Services Act of 1949 
                (41 U.S.C. 251 et seq.)'' and substitute ``division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41''.
          (6) In section 501(b)(2)(B), strike ``the Office of Federal 
        Procurement Policy Act (41 U.S.C. 401 et seq.)'' and substitute 
        ``division B (except sections 1704 and 2303) of subtitle I of 
        title 41''.
          (7) In section 502--
                  (A) in subsection (b)(1)(A)(i), strike ``section 5(3) 
                of the Javits-Wagner-O'Day Act (41 U.S.C. 48b(3))'' and 
                substitute ``section 8501(7) of title 41'';
                  (B) in subsection (b)(1)(A)(ii), strike ``handicapped 
                (as defined in section 5(4) of the Javits-Wagner-O'Day 
                Act (41 U.S.C. 48b(4)))'' and substitute ``disabled (as 
                defined in section 8501(6) of title 41)'';
                  (C) in subsection (b)(1)(B), strike ``the Javits-
                Wagner-O'Day Act (41 U.S.C. 46 et seq.)'' and substitute 
                ``chapter 85 of title 41''; and
                  (D) in subsection (b)(2), strike ``section 2 of the 
                Javits-Wagner-O'Day Act (41 U.S.C. 47)'' and substitute 
                ``section 8503 of title 41''.
          (8) In section 503(b)--
                  (A) in paragraph (1), strike ``the Office of Federal 
                Procurement Policy Act (41 U.S.C. 401 et seq.)'' and 
                substitute ``division B (except sections 1704 and 2303) 
                of subtitle I of title 41''; and
                  (B) in paragraph (3)--
                        (i) in the heading, strike ``Section 3709 of 
                      revised statutes'' and substitute ``Section 
                      6101(b) to (d) of title 41''; and
                        (ii) strike ``Section 3709 of the Revised 
                      Statutes (41 U.S.C. 5)'' and substitute ``Section 
                      6101(b) to (d) of title 41''.

[[Page 124 STAT. 3852]]

          (9) In section 506(a)(1)(D), strike ``the Office of Federal 
        Procurement Policy Act (41 U.S.C. 401 et seq.)'' and substitute 
        ``division B (except sections 1704 and 2303) of subtitle I of 
        title 41''.
          (10) In section 545(f), strike ``Section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b)-(d) of 
        title 41''.
          (11) In section 593(a)(2), strike ``the Javits-Wagner-O'Day 
        Act (41 U.S.C. 46 et seq.)'' and substitute ``chapter 85 of 
        title 41''.
          (12) In section 1305, strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (13) In section 1308, strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (14) In section 3148, strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) 
        of title 41''.
          (15) In section 3304(d)(2), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (16) In section 3305(a)--
                  (A) in paragraph (1), strike ``title III of the 
                Federal Property and Administrative Services Act of 1949 
                (41 U.S.C. 251 et seq.)'' and substitute ``division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41''; and
                  (B) in paragraph (2), strike ``title III of the 
                Federal Property and Administrative Services Act of 1949 
                (41 U.S.C. 251 et seq.)'' and substitute ``division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41''.
          (17) In section 3308(a), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) 
        of title 41''.
          (18) In section 3310(2), strike ``section 303 of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 
        253)'' and substitute ``sections 3105, 3301, and 3303 to 3305 of 
        title 41''.
          (19) In section 3701(b)(3)(A)(ii), strike ``the Walsh-Healey 
        Act (41 U.S.C. 35 et seq.)'' and substitute ``chapter 65 of 
        title 41''.
          (20) In section 3704(b)(1), strike ``sections 4 and 5 of the 
        Walsh-Healey Act (41 U.S.C. 38, 39)'' and substitute ``sections 
        6506 and 6507 of title 41''.
          (21) In section 3707, strike ``section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)'' and substitute 
        ``section 103 of title 41''.
          (22) In section 6111(b)(2)(D), strike ``section 3709 of the 
        Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
        6101(b) to (d) of title 41''.
          (23) In section 8711(d), strike ``section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``section 6101(b) to (d) 
        of title 41''.
          (24) In section 11101--

[[Page 124 STAT. 3853]]

                  (A) in paragraph (1), strike ``section 4 of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 403)'' and 
                substitute ``section 103 of title 41''; and
                  (B) in paragraph (2), strike ``section 4 of the Act 
                (41 U.S.C. 403)'' and substitute ``section 133 of title 
                41''.

  (m) Title 44.--Title 44, United States Code, is amended as follows:
          (1) In the chapter analysis for chapter 3, in the item for 
        section 311, strike ``the Federal Property and Administrative 
        Services Act'' and substitute ``subtitle I of title 40 and 
        division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 
        4711) of subtitle I of title 41''.
          (2) In section 311--
                  (A) in the section catchline, strike ``the Federal 
                Property and Administrative Services Act'' and 
                substitute ``subtitle I of title 40 and division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41'';
                  (B) in subsection (a), strike ``title III of the 
                Federal Property and Administrative Services Act of 1949 
                (41 U.S.C. 251 et seq.)'' and substitute ``division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41''; and
                  (C) in subsection (c), strike ``section 3709 of the 
                Revised Statutes (41 U.S.C. 5)'' and substitute 
                ``section 6101(b) to (d) of title 41''.

  (n) Title 46.--Section 51703(b)(2) of title 46, United States Code, is 
amended by striking ``section 3709 of the Revised Statutes (41 U.S.C. 
5)'' and substituting ``section 6101(b) to (d) of title 41''.
  (o) Title 49.--Title 49, United States Code, is amended as follows:
          (1) In section 103(e), strike ``title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.)'' and substitute ``division C (except sections 3302, 
        3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 
        41''.
          (2) In section 1113(b)(1)(B) strike ``section 3709 of the 
        Revised Statutes (41 U.S.C. 5)'' and substitute ``section 
        6101(b) to (d) of title 41''.
          (3) In section 5334(j)(2), strike ``Section 3709 of the 
        Revised Statutes (41 U.S.C. 5)'' and substitute ``Section 
        6101(b) to (d) of title 41''.
          (4) In section 10721, strike ``Section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) 
        of title 41''.
          (5) In section 13712, strike ``Section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) 
        of title 41''.
          (6) In section 15504, strike ``Section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) 
        of title 41''.
          (7) In section 40110--
                  (A) in subsection (d)(2)(A), strike ``Title III of the 
                Federal Property and Administrative Services Act of 1949 
                (41 U.S.C. 252-266)'' and substitute ``Division C 
                (except sections 3302, 3501(b), 3509, 3906, 4710, and 
                4711) of subtitle I of title 41'';

[[Page 124 STAT. 3854]]

                  (B) in subsection (d)(2)(B), strike ``The Office of 
                Federal Procurement Policy Act (41 U.S.C. 401 et seq.)'' 
                and substitute ``Division B (except sections 1704 and 
                2303) of subtitle I of title 41'';
                  (C) in subsection (d)(2)(C), strike ``, except for 
                section 315 (41 U.S.C. 265). For the purpose of applying 
                section 315 of that Act to the system,'' and substitute 
                ``. However, section 4705 of title 41 shall apply to the 
                new acquisition management system developed and 
                implemented pursuant to paragraph (1). For the purpose 
                of applying section 4705 of title 41 to the system,''; 
                and
                  (D) in subsection (d)(3)--
                        (i) in the heading, strike ``the office of 
                      federal procurement policy act'' and substitute 
                      ``division b (except sections 1704 and 2303) of 
                      subtitle i of title 41'';
                        (ii) before subparagraph (A), strike ``section 
                      27 of the Office of Federal Procurement Policy Act 
                      (41 U.S.C. 423)'' and substitute ``chapter 21 of 
                      title 41''; and
                        (iii) in subparagraph (A), strike ``Subsections 
                      (f) and (g)'' and substitute ``Sections 2101 and 
                      2106 of title 41''.
          (8) In section 40118(f)(2), strike ``section 4(12) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(12))'' 
        and substitute ``section 103 of title 41''.
          (9) In section 47305(d), strike ``Section 3709 of the Revised 
        Statutes (41 U.S.C. 5)'' and substitute ``Section 6101(b) to (d) 
        of title 41''.

SEC. 6. TRANSITIONAL AND SAVINGS PROVISIONS.

  (a) <<NOTE: 41 USC note prec. 101.>>  Cutoff Date.--This Act replaces 
certain provisions of law enacted on or before December 31, 2008. If a 
law enacted after that date amends or repeals a provision replaced by 
this Act, that law is deemed to amend or repeal, as the case may be, the 
corresponding provision enacted by this Act. If a law enacted after that 
date is otherwise inconsistent with this Act, it supersedes this Act to 
the extent of the inconsistency.

  (b) <<NOTE: 41 USC note prec. 101.>>  Original Date of Enactment 
Unchanged.--For purposes of determining whether one provision of law 
supersedes another based on enactment later in time, the date of 
enactment of a provision enacted by this Act is deemed to be the date of 
enactment of the provision it replaced.

  (c) <<NOTE: 41 USC note prec. 101.>>  References to Provisions 
Replaced.--A reference to a provision of law replaced by this Act, 
including a reference in a regulation, order, or other law, is deemed to 
refer to the corresponding provision enacted by this Act.

  (d) <<NOTE: 41 USC note prec. 101.>>  Regulations, Orders, and Other 
Administrative Actions.--A regulation, order, or other administrative 
action in effect under a provision of law replaced by this Act continues 
in effect under the corresponding provision enacted by this Act.

  (e) <<NOTE: 41 USC note prec. 101.>>  Actions Taken and Offenses 
Committed.--An action taken or an offense committed under a provision of 
law replaced by this Act is deemed to have been taken or committed under 
the corresponding provision enacted by this Act.

  (f) Effective Dates for Certain Actions.--
          (1) <<NOTE: 41 USC 2303 note.>>  Issue policy.--The 
        requirement in section 2303(b)(1) of title 41, United States 
        Code, to issue a policy shall be done not later than 270 days 
        after October 14, 2008.

[[Page 124 STAT. 3855]]

          (2) <<NOTE: 41 USC 2311 note.>>  Revisions in federal 
        procurement data system or successor system.--The requirement in 
        section 2311 of title 41, United States Code, to direct 
        appropriate revisions in the Federal Procurement Data System or 
        any successor system shall be done not later than one year after 
        October 14, 2008.
          (3) <<NOTE: 41 USC 2313 note.>>  Establish database.--The 
        requirement in section 2313(a) of title 41, United States Code, 
        to establish a database shall be done not later than one year 
        after October 14, 2008.
          (4) <<NOTE: 41 USC 2313 note.>>  Amend federal acquisition 
        regulation within one year after october 14, 2008.--The Federal 
        Acquisition Regulation shall be amended to meet the requirements 
        of sections 2313(f), 3302(b) and (d), 4710(b), and 4711(b) of 
        title 41, United States Code, not later than one year after 
        October 14, 2008.
          (5) <<NOTE: 41 USC 3906 note.>>  Amend federal acquisition 
        regulation within 270 days after october 14, 2008.--The Federal 
        Acquisition Regulation shall be amended to meet the requirements 
        of section 3906(b) of title 41, United States Code, not later 
        than 270 days after October 14, 2008.

SEC. 7. REPEALS.

  (a) <<NOTE: 41 USC note prec. 101.>>  Inference of Repeal.--The repeal 
of a law by this Act may not be construed as a legislative inference 
that the provision was or was not in effect before its repeal.

  (b) <<NOTE: 41 USC note prec. 101.>>  Repealer Schedule.--The laws 
specified in the following schedule are repealed, except for rights and 
duties that matured, penalties that were incurred, and proceedings that 
were begun before the date of enactment of this Act.

  

124 STAT.

124 STAT.

124 STAT.

PUBLIC LAW 111-350--JAN. 4, 2011

PUBLIC LAW 111-350--JAN. 4, 2011

PUBLIC LAW 111-350--JAN. 4, 2011

                                                                Schedule of Laws Repealed
                                                                    Statutes at Large
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          Statutes at Large         U.S. Code (title 41 unless otherwise
                                                                                   -------------------------------               specified)
                Date                  Chapter or Public Law         Section                                       --------------------------------------
                                                                                    Volume           Page                 Existing           Proposed
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
                1875
Mar. 3.............................  133...................  2....................      18  455..................  10...................  ..............
 
                1884
July 7.............................  332...................  (words after ``fifty       23  204..................  24...................            6308
                                                              five thousand
                                                              dollars'' in 3d par.
                                                              under heading
                                                              ``Miscellaneous
                                                              Objects Under the
                                                              Treasury
                                                              Department'').
 
                1920
June 5.............................  240...................  (last par. under           41  975..................  23...................            6307
                                                              heading ``Purchase
                                                              of Articles
                                                              Manufactured at
                                                              Government
                                                              Arsenals'').
 
                1921
June 30............................  33....................  1 (last proviso on p.      42  78...................  11a..................            6302
                                                              78).
 
                1922
July 1.............................  259...................  (1st proviso on p.         42  812..................  23...................            6307
                                                              812).
 
                1926
May 13.............................  294...................  (4th complete par.         44  547..................  16c..................  ..............
                                                              (related to R.S.
                                                              Sec.  3741) on p.
                                                              547).
 

[[Page 124 STAT. 3856]]

 
                1927
Jan. 12............................  27....................  (2d complete par.          44  936..................  16a..................  ..............
                                                              (related to R.S.
                                                              Sec.  3741) on p.
                                                              936).
 
                1933
Mar. 3.............................  212...................  title III, Sec.  1...      47  1520.................  10c..................            8301
                                      .....................  title III, Sec.  2...      47  1520.................  10a..................            8302
                                      .....................  title III, Sec.  3...      47  1520.................  10b..................            8303
                                      .....................  title III, Sec.  4...  ......  .....................  10b-1................  ..............
June 16............................  101...................  5....................      48  305..................  24a..................  ..............
 
                1934
Jan. 25............................  5.....................  (related to R.S. Sec.      48  337..................  22...................            6306
                                                               3741).
June 16............................  553...................  1-6..................      48  974..................  28-33................  ..............
 
                1935
Aug. 29............................  815...................  .....................      49  990..................  34...................  ..............
 
                1936
June 30............................  881...................  1 (matter before           49  2036.................  35...................            6502
                                                              subsec. (a) less
                                                              words related to
                                                              definition of
                                                              ``agency of the
                                                              United States'').
                                      .....................  1 (matter before           49  2036.................  35...................            6501
                                                              subsec. (a) related
                                                              to definition of
                                                              ``agency of the
                                                              United States'').
                                      .....................  1(a)-(d).............      49  2036.................  35...................            6502
                                      .....................  2....................      49  2037.................  36...................            6503
                                      .....................  3....................      49  2037.................  37...................            6504
                                      .....................  4....................      49  2038.................  38...................            6506
                                      .....................  5....................      49  2038.................  39...................            6507
                                      .....................  6....................      49  2038.................  40...................            6508
                                      .....................  7....................      49  2039.................  41...................            6501
                                      .....................  8....................      49  2039.................  42...................            6511
                                      .....................  9....................      49  2039.................  43...................            6505
                                      .....................  10(a)................  ......  .....................  43a..................            6509
                                      .....................  10(b) (1st sentence).  ......  .....................  43a..................            6507
                                      .....................  10(b) (last            ......  .....................  43a..................            6509
                                                              sentence), (c).
                                      .....................  11...................  ......  .....................  43b..................            6510
                                      .....................  12...................      49  2039.................  44...................  ..............
                                      .....................  13...................      49  2039.................  45...................            6502
 
                1938
June 25............................  697...................  1....................      52  1196.................  46...................            8502
                                      .....................  2....................      52  1196.................  47...................            8503
                                      .....................  3....................      52  1196.................  48...................            8504
                                      .....................  4....................      52  1196.................  48a..................            8505
                                      .....................  5....................      52  1196.................  48b..................            8501
                                      .....................  6....................      52  1196.................  48c..................            8506
                                      .....................  7....................  ......  .....................  46 note..............  ..............
 
                1939
Aug. 4.............................  418...................  13 (related to R.S.        53  1197.................  16d..................  ..............
                                                              Sec.  3744).
 
                1940
June 18............................  396...................  (last par. (related        54  474..................  6kk..................  ..............
                                                              to R.S. Sec.  3709)
                                                              under heading
                                                              ``Botanic Garden'').
                                      .....................  (last par. (related        54  474..................  16b..................  ..............
                                                              to R.S. Sec.  3744)
                                                              under heading
                                                              ``Botanic Garden'').
June 24............................  412...................  .....................      54  504..................  6b...................            6102
Oct. 10............................  851...................  2(a).................      54  1110.................  6a...................            6102
                                      .....................  2(f).................      54  1110.................  6a...................            6102
                                      .....................  2(h).................      54  1110.................  6a...................            6102
                                      .....................  2(j).................      54  1110.................  6a...................            6102

[[Page 124 STAT. 3857]]

 
                                      .....................  3(a).................      54  1111.................  6b...................  ..............
                                      .....................  3(b).................      54  1111.................  6b...................  ..............
 
                1942
June 22............................  432...................  1....................      56  375..................  49...................            6309
                                      .....................  2....................      56  376..................  50...................            6309
July 2.............................  472...................  (1st complete par. on      56  493..................  6....................  ..............
                                                              p. 493).
 
                1944
July 1.............................  358...................  1, 2(a)..............      58  649..................  101, 102.............  ..............
                                      .....................  3....................      58  650..................  103..................  ..............
                                      .....................  4(b)-13(c)...........      58  651..................  104-113..............  ..............
                                      .....................  13(d)................      58  662..................  113..................  ..............
                                      .....................  13(e)-15.............      58  662..................  113-115..............  ..............
                                      .....................  17, 18(a)............      58  665..................  117, 118.............  ..............
                                      .....................  18(c)-(e)............      58  666..................  118..................  ..............
                                      .....................  19(c)................      58  667..................  119..................  ..............
                                      .....................  20-25................      58  668..................  120-125..............  ..............
                                      .....................  26...................      58  671..................  101 note.............  ..............
                                      .....................  27...................      58  671..................  101 note.............  ..............
 
                1946
Mar. 8.............................  80....................  1....................      60  37...................  51...................  ..............
                                      .....................  2....................      60  37...................  52...................            8701
                                      .....................  3....................      60  37...................  53...................            8702
                                      .....................  4....................      60  37...................  54...................            8707
                                      .....................  5....................      60  37...................  55...................            8706
                                      .....................  6....................      60  37...................  56...................            8705
                                      .....................  7....................      60  37...................  57...................            8703
                                      .....................  8....................      60  37...................  58...................            8704
Aug. 2.............................  744...................  9(c).................      60  809..................  5....................            6101
                                      .....................  18...................      60  811..................  5a...................            6101
 
                1949
June 30............................  288...................  301..................      63  393..................  251..................  ..............
                                      .....................  302(a)...............      63  393..................  252..................            3101
                                      .....................  302(b)...............      63  393..................  252..................            3104
                                      .....................  302(c)(1)............      63  393..................  252..................            3106
                                      .....................  302(c)(2)............  ......  .....................  252..................            3301
                                      .....................  302A, 302B...........  ......  .....................  252a, 252b...........            3101
                                      .....................  302C.................  ......  .....................  252c.................            4709
                                      .....................  303(a)...............      63  395..................  253..................            3301
                                      .....................  303(b)...............      63  395..................  253..................            3303
                                      .....................  303(c)-(f)...........      63  395..................  253..................            3304
                                      .....................  303(g)...............      63  395..................  253..................            3305
                                      .....................  303(h)...............  ......  .....................  253..................            3301
                                      .....................  303(i)...............  ......  .....................  253..................            3105
                                      .....................  303(j)...............  ......  .....................  253..................            3304
                                      .....................  303A.................  ......  .....................  253a.................            3306
                                      .....................  303B(a), (b).........  ......  .....................  253b.................            3701
                                      .....................  303B(c)..............  ......  .....................  253b.................            3702
                                      .....................  303B(d)..............  ......  .....................  253b.................            3703
                                      .....................  303B(e)..............  ......  .....................  253b.................            3704
                                      .....................  303B(f)..............  ......  .....................  253b.................            3705
                                      .....................  303B(g)..............  ......  .....................  253b.................      3704, 3705
                                      .....................  303B(h)..............  ......  .....................  253b.................            3706
                                      .....................  303B(i)..............  ......  .....................  253b.................            3707
                                      .....................  303B(j)..............  ......  .....................  253b.................            3308
                                      .....................  303B(k), (l).........  ......  .....................  253b.................            3708
                                      .....................  303B(m)..............  ......  .....................  253b.................            4702
                                      .....................  303C.................  ......  .....................  253c.................            3311
                                      .....................  303D.................  ......  .....................  253d.................            4703
                                      .....................  303F.................  ......  .....................  253f.................            3310
                                      .....................  303G.................  ......  .....................  253g.................            4704
                                      .....................  303H.................  ......  .....................  253h.................            4103
                                      .....................  303I.................  ......  .....................  253i.................            4105
                                      .....................  303J.................  ......  .....................  253j.................            4106
                                      .....................  303K.................  ......  .....................  253k.................            4101
                                      .....................  303L.................  ......  .....................  253l.................            3902
                                      .....................  303M.................  ......  .....................  253m.................            3309
                                      .....................  304(a)...............      63  395..................  254..................            3901

[[Page 124 STAT. 3858]]

 
                                      .....................  304(b)...............      63  395..................  254..................            3905
                                      .....................  304A(a)..............  ......  .....................  254b.................            3502
                                      .....................  304A(b)..............  ......  .....................  254b.................            3503
                                      .....................  304A(c)..............  ......  .....................  254b.................            3504
                                      .....................  304A(d)..............  ......  .....................  254b.................            3505
                                      .....................  304A(e)..............  ......  .....................  254b.................            3506
                                      .....................  304A(f)..............  ......  .....................  254b.................            3507
                                      .....................  304A(g)..............  ......  .....................  254b.................            3508
                                      .....................  304A(h)..............  ......  .....................  254b.................            3501
                                      .....................  304B.................  ......  .....................  254c.................            3903
                                      .....................  304C.................  ......  .....................  254d.................            4706
                                      .....................  305(a)...............      63  396..................  255..................            4501
                                      .....................  305(b)...............  ......  .....................  255..................            4502
                                      .....................  305(c)...............      63  396..................  255..................            4502
                                      .....................  305(d)...............      63  396..................  255..................            4503
                                      .....................  305(e)...............  ......  .....................  255..................            4504
                                      .....................  305(f)...............  ......  .....................  255..................            4505
                                      .....................  305(g)...............  ......  .....................  255..................            4506
                                      .....................  306(a)-(d)...........  ......  .....................  256..................            4303
                                      .....................  306(e)...............  ......  .....................  256..................            4304
                                      .....................  306(f)...............  ......  .....................  256..................            4305
                                      .....................  306(g)...............  ......  .....................  256..................            4306
                                      .....................  306(h)...............  ......  .....................  256..................            4307
                                      .....................  306(i)...............  ......  .....................  256..................            4308
                                      .....................  306(j)...............  ......  .....................  256..................            4309
                                      .....................  306(k)...............  ......  .....................  256..................            4310
                                      .....................  306(l)(1)............  ......  .....................  256..................            4301
                                      .....................  306(l)(2)............  ......  .....................  256..................            4302
                                      .....................  306(m)...............  ......  .....................  256..................            4301
                                      .....................  307..................      63  396..................  257..................            4701
                                      .....................  309(a)...............      63  397..................  259..................             151
                                      .....................  309(b)...............  ......  .....................  259..................             152
                                      .....................  309(c)(1)............  ......  .....................  259..................             111
                                      .....................  309(c)(2)............  ......  .....................  259..................             112
                                      .....................  309(c)(3)............  ......  .....................  259..................             114
                                      .....................  309(c)(4)............  ......  .....................  259..................             107
                                      .....................  309(c)(5)............  ......  .....................  259..................             113
                                      .....................  309(c)(6)............  ......  .....................  259..................             116
                                      .....................  309(c)(7)............  ......  .....................  259..................             109
                                      .....................  309(c)(8), (9).......  ......  .....................  259..................             108
                                      .....................  309(c)(10)...........  ......  .....................  259..................             115
                                      .....................  309(c)(11)...........  ......  .....................  259..................             103
                                      .....................  309(c)(12)...........  ......  .....................  259..................             110
                                      .....................  309(c)(13)...........  ......  .....................  259..................             102
                                      .....................  309(c)(14)...........  ......  .....................  259..................             105
                                      .....................  309(d)...............  ......  .....................  259..................             153
                                      .....................  309(e)...............  ......  .....................  259..................             106
                                      .....................  310..................      63  397..................  260..................            3101
                                      .....................  311..................  ......  .....................  261..................            3102
                                      .....................  312..................  ......  .....................  262..................            4701
                                      .....................  313..................  ......  .....................  263..................            3103
                                      .....................  314..................  ......  .....................  264..................            3307
                                      .....................  314A (``commercial     ......  .....................  264a (``commercial                103
                                                              item'').                                              item'').
                                      .....................  314A                   ......  .....................  264a                              110
                                                              (``nondevelopmental                                   (``nondevelopmental
                                                              item'').                                              item'').
                                      .....................  314A (``component'').  ......  .....................  264a (``component'').             105
                                      .....................  314A (``commercial     ......  .....................  264a (``commercial                102
                                                              component'').                                         component'').
                                      .....................  314B.................  ......  .....................  264b.................            3307
                                      .....................  315..................  ......  .....................  265..................            4705
                                      .....................  316..................  ......  .....................  266..................            3105
Oct. 29............................  787...................  633..................      63  1024.................  10d..................            8303
 
                1950
Sept. 5............................  849...................  10(a)................      64  591..................  256a.................            4707
 
                1952
July 14............................  739...................  .....................      66  627..................  113, 113 note........  ..............
 

[[Page 124 STAT. 3859]]

 
                1954
May 11.............................  199...................  1....................      68  81...................  321..................  ..............
                                      .....................  2....................      68  81...................  322..................  ..............
 
                1957
July 1.............................  85-75.................  (last par. on p. 251)      71  251..................  6a...................  ..............
 
                1961
Aug. 3.............................  87-125................  301..................      75  279..................  6b...................  ..............
 
                1962
Sept. 5............................  87-638................  .....................      76  437..................  254a.................            4708
 
                1965
July 27............................  89-90.................  (2d par. on p. 276)..      79  276..................  6a-1.................            6102
Oct. 22............................  89-286................  1....................      79  1034.................  351 note.............  ..............
                                      .....................  2(a) (words before         79  1034.................  351..................            6702
                                                              par. (1) related to
                                                              applicability).
                                      .....................  2(a) (words before         79  1034.................  351..................            6703
                                                              par. (1) related to
                                                              required contract
                                                              terms), (1)-(5).
                                      .....................  2(b).................      79  1034.................  351..................            6704
                                      .....................  3....................      79  1035.................  352..................            6705
                                      .....................  4....................      79  1035.................  353..................            6707
                                      .....................  5(a).................      79  1035.................  354..................            6706
                                      .....................  5(b).................      79  1035.................  354..................            6705
                                      .....................  6....................      79  1035.................  355..................            6707
                                      .....................  7....................      79  1035.................  356..................            6702
                                      .....................  8....................      79  1036.................  357..................            6701
                                      .....................  9....................      79  1036.................  351 note.............  ..............
                                      .....................  10...................  ......  .....................  358..................            6707
 
                1974
Aug. 30............................  93-400................  4(1).................      88  797..................  403..................             133
                                      .....................  4(2).................      88  797..................  403..................             111
                                      .....................  4(3).................      88  797..................  403..................             112
                                      .....................  4(4).................      88  797..................  403..................             114
                                      .....................  4(5).................  ......  .....................  403..................             132
                                      .....................  4(6).................  ......  .....................  403..................             107
                                      .....................  4(7).................  ......  .....................  403..................             113
                                      .....................  4(8).................  ......  .....................  403..................             116
                                      .....................  4(9).................  ......  .....................  403..................             109
                                      .....................  4(10) (``item'',       ......  .....................  403..................             108
                                                              ``item of supply'').
                                      .....................  4(10) (``supplies'').  ......  .....................  403..................             115
                                      .....................  4(11)................  ......  .....................  403..................             134
                                      .....................  4(12)................  ......  .....................  403..................             103
                                      .....................  4(13)................  ......  .....................  403..................             110
                                      .....................  4(14)................  ......  .....................  403..................             105
                                      .....................  4(15)................  ......  .....................  403..................             102
                                      .....................  4(16)................  ......  .....................  403..................             131
                                      .....................  4(17)................  ......  .....................  403..................            1301
                                      .....................  5(a).................      88  797..................  404..................            1101
                                      .....................  5(b).................      88  797..................  404..................            1102
                                      .....................  6(a)-(c).............      88  797..................  405..................            1121
                                      .....................  6(d), (e)............      88  797..................  405..................            1122
                                      .....................  6(f).................      88  797..................  405..................            1121
                                      .....................  6(g).................      88  797..................  405..................            1122
                                      .....................  6(h)(1)..............      88  797..................  405..................            1130
                                      .....................  6(h)(2)..............      88  797..................  405..................            2305
                                      .....................  6(i).................      88  797..................  405..................            1125
                                      .....................  6(j).................  ......  .....................  405..................            1126
                                      .....................  6(k).................  ......  .....................  405..................            1131
                                      .....................  7....................      88  798..................  406..................            1701
                                      .....................  9....................      88  799..................  408..................            1121
                                      .....................  11...................      88  799..................  410..................            1101
                                      .....................  12...................      88  799..................  411..................            1122
                                      .....................  14(a)................      88  800..................  412..................            2307
                                      .....................  14(b)................      88  800..................  412..................            2306
                                      .....................  15...................  ......  .....................  413..................            1124

[[Page 124 STAT. 3860]]

 
                                      .....................  16...................  ......  .....................  414..................            1702
                                      .....................  16A(a)-(c)...........  ......  .....................  414b.................            1311
                                      .....................  16A(d), (e)..........  ......  .....................  414b.................            1312
                                      .....................  18...................  ......  .....................  416..................            1708
                                      .....................  19...................  ......  .....................  417..................            1712
                                      .....................  20...................  ......  .....................  418..................            1705
                                      .....................  21...................  ......  .....................  418a.................            2302
                                      .....................  22...................  ......  .....................  418b.................            1707
                                      .....................  23...................  ......  .....................  419..................            1709
                                      .....................  25(a), (b)...........  ......  .....................  421..................            1302
                                      .....................  25(c)-(f)............  ......  .....................  421..................            1303
                                      .....................  26(a)-(e)............  ......  .....................  422..................            1501
                                      .....................  26(f)-(h)(1).........  ......  .....................  422..................            1502
                                      .....................  26(h)(2)-(4).........  ......  .....................  422..................            1503
                                      .....................  26(i)................  ......  .....................  422..................  ..............
                                      .....................  26(j)................  ......  .....................  422..................            1504
                                      .....................  26(k)................  ......  .....................  422..................            1505
                                      .....................  26(l)................  ......  .....................  422..................            1506
                                      .....................  27(a), (b)...........  ......  .....................  423..................            2102
                                      .....................  27(c)................  ......  .....................  423..................            2103
                                      .....................  27(d)................  ......  .....................  423..................            2104
                                      .....................  27(e)................  ......  .....................  423..................            2105
                                      .....................  27(f)................  ......  .....................  423..................            2101
                                      .....................  27(g)................  ......  .....................  423..................            2106
                                      .....................  27(h)................  ......  .....................  423..................            2107
                                      .....................  29...................  ......  .....................  425..................            1304
                                      .....................  30...................  ......  .....................  426..................            2301
                                      .....................  31...................  ......  .....................  427..................            1901
                                      .....................  32...................  ......  .....................  428..................            1902
                                      .....................  32A..................  ......  .....................  428a.................            1903
                                      .....................  33...................  ......  .....................  429..................            1905
                                      .....................  34...................  ......  .....................  430..................            1906
                                      .....................  35(a), (b)...........  ......  .....................  431..................            1907
                                      .....................  35(c)................  ......  .....................  431..................             104
                                      .....................  35A..................  ......  .....................  431a.................            1908
                                      .....................  36...................  ......  .....................  432..................            1711
                                      .....................  37...................  ......  .....................  433..................            1703
                                      .....................  38...................  ......  .....................  434..................            2308
                                      .....................  39...................  ......  .....................  435..................            1127
                                      .....................  40...................  ......  .....................  436..................            2309
                                      .....................  41...................  ......  .....................  437..................            2310
                                      .....................  42...................  ......  .....................  438..................            7105
                                      .....................  43...................  ......  .....................  439..................            1710
                                      .....................  44...................  ......  .....................  440..................            2312
 
                1978
Oct. 24............................  95-507................  222 (1st sentence)...      92  1771.................  405a.................            1121
                                      .....................  222 (last sentence)..      92  1771.................  405a.................            1123
Nov. 1.............................  95-563................  1....................      92  2383.................  601 note.............  ..............
                                      .....................  2....................      92  2383.................  601..................            7101
                                      .....................  3....................      92  2383.................  602..................            7102
                                      .....................  4....................      92  2384.................  603..................            7102
                                      .....................  5....................      92  2384.................  604..................            7103
                                      .....................  6(a) (1st, 2d              92  2384.................  605..................            7103
                                                              sentences).
                                      .....................  6(a) (3d, 4th          ......  .....................  605..................            7103
                                                              sentences).
                                      .....................  6(a) (5th-last             92  2384.................  605..................            7103
                                                              sentences), (b),
                                                              (c)(1)-(5).
                                      .....................  6(c)(6), (7), (d),     ......  .....................  605..................            7103
                                                              (e).
                                      .....................  7....................      92  2385.................  606..................            7104
                                      .....................  8(a)-(e).............      92  2385.................  607..................            7105
                                      .....................  8(f).................      92  2386.................  607..................            7106
                                      .....................  8(g).................      92  2387.................  607..................            7107
                                      .....................  9....................      92  2387.................  608..................            7106
                                      .....................  10(a)................      92  2388.................  609..................            7104
                                      .....................  10(b)-(e)............      92  2388.................  609..................            7107
                                      .....................  10(f)................  ......  .....................  609..................            7107
                                      .....................  11...................      92  2388.................  610..................            7105
                                      .....................  12...................      92  2389.................  611..................            7109
                                      .....................  13...................      92  2389.................  612..................            7108
                                      .....................  15...................      92  2391.................  613..................  ..............
                                      .....................  16...................      92  2391.................  601 note.............  ..............
 

[[Page 124 STAT. 3861]]

 
                1984
Oct. 30............................  98-577................  502..................      98  3085.................  414a.................            1706
 
                1988
Oct. 1.............................  100-463...............  8141.................     102  2270-47..............  405b.................            2304
Oct. 25............................  100-533...............  502..................     102  2697.................  417a.................            1713
Nov. 18............................  100-690...............  5151.................     102  4304.................  701 note.............  ..............
                                      .....................  5152.................     102  4304.................  701..................            8102
                                      .....................  5153.................     102  4306.................  702..................            8103
                                      .....................  5154.................     102  4307.................  703..................            8104
                                      .....................  5155.................     102  4307.................  704..................            8105
                                      .....................  5156.................     102  4308.................  705..................            8106
                                      .....................  5157, 5158...........     102  4308.................  706, 707.............            8101
                                      .....................  5160.................     102  4308.................  701 note.............  ..............
 
                1992
Oct. 29............................  102-572...............  907(a)(3)............     106  4518.................  611 note.............            7109
 
                1993
Nov. 30............................  103-160...............  849(c), (d)..........     107  1725.................  10b-2................            8304
 
                1994
Oct. 13............................  103-355...............  1054(b)..............     108  3265.................  253h note............            4102
                                      .....................  8002.................     108  3386.................  264 note.............            3307
 
                1996
Sept. 23...........................  104-201...............  827..................     110  2611.................  10b-3................            8305
 
                1997
June 12............................  105-18................  7004.................     111  192..................  253l-1...............            3904
 
                1999
Sept. 29...........................  106-57................  207..................     113  423..................  253l-2...............            3904
Oct. 5.............................  106-65................  804..................     113  704..................  253h note............            4104
 
                2000
Dec. 21............................  106-554...............  1(a)(2) [title I,         114  2763A-100............  253l-3...............            3904
                                                              Sec.  101].
                                      .....................  1(a)(2) [title I,         114  2763A-108............  253l-4...............            3904
                                                              Sec.  110].
 
                2003
Feb. 20............................  108-7.................  div. H, title I, Sec.     117  350..................  253l-5...............            3904
                                                               5.
                                      .....................  div. H, title I, Sec.     117  354..................  6a-3.................            6102
                                                               104.
                                      .....................  div. H, title I, Sec.     117  357..................  253l-6...............            3904
                                                               1002.
                                      .....................  div. H, title I, Sec.     117  370..................  6a-4.................            6102
                                                               1102.
                                      .....................  div. H, title I, Sec.     117  373..................  253l-7...............            3904
                                                               1202.
Aug. 15............................  108-72................  4....................     117  889..................  253l-8...............            3904
Nov. 24............................  108-136...............  1412(a)..............     117  1664.................  433 note.............            1703
                                      .....................  1413.................     117  1665.................  433 note.............            1703
                                      .....................  1414.................     117  1666.................  433 note.............            1128
                                      .....................  1428.................     117  1670.................  253a note............            3306
                                      .....................  1431(b)..............     117  1671.................  405 note.............            1129
                                      .....................  1441.................     117  1673.................  428a note............            1904
 
                2004
Oct. 28............................  108-375...............  807(c)...............     118  2011.................  431a note............            1908
 
                2008
Jan. 28............................  110-181...............  855..................     122  251..................  433a.................            1704
June 30............................  110-252...............  6102, 6103...........     122  2386, 2387...........  251 note.............            3509
Oct. 14............................  110-417...............  [div. A], title VIII,     122  4537.................  405c(a)..............            2303
                                                              841(a).
                                      .....................  [div. A], title VIII,     122  4539.................  405c(c)..............            2303
                                                              841(c).
                                      .....................  [div. A], title VIII,     122  4547.................  253h note............            3302
                                                              863(a)-(e).
                                      .....................  [div. A], title VIII,     122  4549.................  254 note.............            3906
                                                              864(a), (b), (d),
                                                              (e), (f)(2), (g).
                                      .....................  [div. A], title VIII,     122  4551.................  254b note............            4710
                                                              866.

[[Page 124 STAT. 3862]]

 
                                      .....................  [div. A], title VIII,     122  4551.................  251 note.............            4711
                                                              867.
                                      .....................  [div. A], title VIII,     122  4552.................  254b note............            3501
                                                              868.
                                      .....................  [div. A], title VIII,     122  4553.................  433a note............            1704
                                                              869.
                                      .....................  [div. A], title VIII,     122  4555.................  417b.................            2313
                                                              872.
                                      .....................  [div. A], title VIII,     122  4558.................  405 note.............            2311
                                                              874(a).
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                Revised Statutes
----------------------------------------------------------------------------------------------------------------
                                                                          United States Code (title 41)
                   Revised Statutes Section                    -------------------------------------------------
                                                                        Existing                 Proposed
----------------------------------------------------------------------------------------------------------------
3709..........................................................                        5                     6101
3710..........................................................                        8                     6103
3732..........................................................                       11                     6301
3733..........................................................                       12                     6303
3735..........................................................                       13                     6304
3736..........................................................                       14                     6301
3737..........................................................                       15                     6305
3741..........................................................                       22                     6306
----------------------------------------------------------------------------------------------------------------

    Approved January 4, 2011.

LEGISLATIVE HISTORY--H.R. 1107:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 111-42 (Comm. on the Judiciary).
CONGRESSIONAL RECORD:
                                                        Vol. 155 (2009):
                                    May 6, considered and passed House.
                                                        Vol. 156 (2010):
                                    Dec. 2, considered and passed 
                                        Senate, amended.
                                    Dec. 16, 17, House considered and 
                                        concurred in Senate amendments.

                                  <all>
```