I 

108TH CONGRESS 

1ST SESSION H. R. 1837

To improve the Federal acquisition workforce and the process for the 

acquisition of services by the Federal Government, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2003

Mr. TOM DAVIS of Virginia (for himself and Mr. HUNTER) introduced the following bill; which was referred to the Committee on Government Reform, 

and in addition to the Committee on Armed Services, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To improve the Federal acquisition workforce and the process 

for the acquisition of services by the Federal Government, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Services Acquisition Reform Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows:

Sec. 1. Short title; table of contents. 
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Sec. 2. Executive agency defined. 

TITLE I—ACQUISITION WORKFORCE AND TRAINING 

Sec. 101. Definition of acquisition. 

Sec. 102. Acquisition workforce training fund. 

Sec. 103. Government-industry exchange program. 

Sec. 104. Acquisition workforce recruitment and retention program. 

Sec. 105. Architectural and engineering acquisition workforce. 

TITLE II—ADAPTATION OF BUSINESS ACQUISITION 

PRACTICES 

Subtitle A—Adaptation of Business Management Practices 

Sec. 201. Chief Acquisition Officers. 

Sec. 202. Chief Acquisition Officers Council. 

Sec. 203. Statutory and regulatory review. 

Subtitle B—Other Acquisition Improvements 

Sec. 211. Ensuring efficient payment. 

Sec. 212. Extension of authority to carry out franchise fund programs. 

Sec. 213. Agency acquisition protests. 

Sec. 214. Improvements in contracting for architectural and engineering services. 

Sec. 215. Authorization of telecommuting for Federal contractors. 

TITLE III—CONTRACT INCENTIVES 

Sec. 301. Share-in-savings initiatives. 

Sec. 302. Incentives for contract efficiency. 

TITLE IV—ACQUISITIONS OF COMMERCIAL ITEMS 

Sec. 401. Preference for performance-based contracting. 

Sec. 402. Authorization of additional commercial contract types. 

Sec. 403. Clarification of commercial services definition. 

Sec. 404. Designation of commercial business entities. 

TITLE V—OTHER MATTERS 

Sec. 501. Authority to enter into certain procurement-related transactions and 

to carry out certain prototype projects. 

Sec. 502. Amendments relating to Federal emergency procurement flexibility. 

Sec. 503. Authority to make inflation adjustments to simplified acquisition 

threshold. 

Sec. 504. Technical corrections related to duplicative amendments.

1 SEC. 2. EXECUTIVE AGENCY DEFINED. 

2 In this Act, the term ‘‘executive agency’’ has the 

3 meaning given that term in section 4(1) of the Office of 
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1 Federal Procurement Policy Act (41 U.S.C. 403(1)), un2 less specifically stated otherwise. 

3 TITLE I—ACQUISITION 

4 WORKFORCE AND TRAINING 

5 SEC. 101. DEFINITION OF ACQUISITION. 

6 Section 4 of the Office of Federal Procurement Policy 

7 Act (41 U.S.C. 403) is amended by adding at the end the 

8 following: 

9 ‘‘(16) The term ‘acquisition’—

10 ‘‘(A) means the process of acquiring, with 

11 appropriated funds, by contract for purchase or 

12 lease, property or services (including construc13 tion) that support the missions and goals of an 

14 executive agency, from the point at which the 

15 requirements of the executive agency are estab16 lished in consultation with the chief acquisition 

17 officer of the executive agency; and 

18 ‘‘(B) includes—

19 ‘‘(i) the process of acquiring property 

20 or services that are already in existence, or 

21 that must be created, developed, dem22 onstrated, and evaluated; 

23 ‘‘(ii) the description of requirements 

24 to satisfy agency needs; 
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1 ‘‘(iii) solicitation and selection of 

2 sources; 

3 ‘‘(iv) award of contracts; 

4 ‘‘(v) contract performance; 

5 ‘‘(vi) contract financing: 

6 ‘‘(vii) management and measurement 

7 of contract performance through final de8 livery and payment; and 

9 ‘‘(viii) technical and management 

10 functions directly related to the process of 

11 fulfilling agency requirements by con12 tract.’’. 

13 SEC. 102. ACQUISITION WORKFORCE TRAINING FUND. 

14 (a) PURPOSES.—The purposes of this section are to 

15 ensure that the Federal acquisition workforce—

16 (1) adapts to fundamental changes in the na17 ture of Federal Government acquisition of property 

18 and services associated with the changing roles of 

19 the Federal Government; and 

20 (2) acquires new skills and a new perspective to 

21 enable it to contribute effectively in the changing en22 vironment of the 21st century. 

23 (b) ESTABLISHMENT OF FUND.—Section 37 of the 

24 Office of Federal Procurement Policy Act (41 U.S.C. 433) 
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1 is amended by adding at the end of subsection (h) the 

2 following new paragraph: 

3 ‘‘(3) ACQUISITION WORKFORCE TRAINING

4 FUND.—(A) The Administrator of General Services 

5 shall establish an acquisition workforce training 

6 fund. The Administrator shall manage the fund 

7 through the Federal Acquisition Institute to support 

8 the training of the acquisition workforce of the exec9 utive agencies other than the Department of De10 fense. The Administrator shall consult with the Ad11 ministrator for Federal Procurement Policy in man12 aging the fund. 

13 ‘‘(B) There shall be credited to the acquisition 

14 workforce training fund 5 percent of the fees col15 lected by executive agencies under the following con16 tracts: 

17 ‘‘(i) Governmentwide task and delivery18 order contracts entered into under sections 

19 2304a and 2304b of title 10, United States 

20 Code, or sections 303H and 303I of the Federal 

21 Property and Administrative Services Act of 

22 1949 (41 U.S.C. 253h and 253i). 

23 ‘‘(ii) Governmentwide contracts for the ac24 quisition of information technology as defined 

25 in section 11101 of title 40, United States 
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1 Code, and multiagency acquisition contracts for 

2 such technology authorized by section 11314 of 

3 such title. 

4 ‘‘(iii) Multiple-award schedule contracts 

5 entered into by the Administrator of General 

6 Services. 

7 ‘‘(C) The head of an executive agency that ad8 ministers a contract described in subparagraph (B) 

9 shall remit to the General Services Administration 

10 the amount required to be credited to the fund with 

11 respect to such contract at the end of each quarter 

12 of the fiscal year. 

13 ‘‘(D) The Administrator of General Services, 

14 through the Office of Federal Acquisition Policy, 

15 shall ensure that funds collected for training under 

16 this section are not used for any purpose other than 

17 the purpose specified in subparagraph (A). 

18 ‘‘(E) Amounts credited to the fund shall be in 

19 addition to funds requested and appropriated for 

20 education and training referred to in paragraph (1). 

21 ‘‘(F) Amounts credited to the fund shall remain 

22 available until expended.’’. 
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1 SEC. 103. GOVERNMENT-INDUSTRY EXCHANGE PROGRAM. 

2 (a) IN GENERAL.—Subpart B of part III of title 5, 

3 United States Code, is amended by adding at the end the 

4 following: 

5 ‘‘CHAPTER 38—ACQUISITION 

6 PROFESSIONAL EXCHANGE PROGRAM

‘‘Sec. 

‘‘3801. Definitions. 

‘‘3802. General provisions. 

‘‘3803. Assignment of employees to private sector organizations. 

‘‘3804. Assignment of employees from private sector organizations. 

‘‘3805. Reporting requirement. 

‘‘3806. Regulations.

7 ‘‘§ 3801. Definitions 

8 ‘‘For purposes of this chapter—

9 ‘‘(1) the term ‘agency’—

10 ‘‘(A) subject to subparagraph (B), means 

11 an executive agency; and 

12 ‘‘(B) does not include—

13 ‘‘(i) the General Accounting Office; 

14 ‘‘(ii) an Office of Inspector General of 

15 an establishment or a designated Federal 

16 entity established under the Inspector Gen17 eral Act of 1978; and 

18 ‘‘(iii) the Defense Contract Audit 

19 Agency referred to in section 2313(b) of 

20 title 10; and 

21 ‘‘(2) the term ‘detail’ means—
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1 ‘‘(A) the assignment or loan of an em2 ployee of an agency to a private sector organi3 zation without a change of position from the 

4 agency that employs the individual, or 

5 ‘‘(B) the assignment or loan of an em6 ployee of a private sector organization to an 

7 agency without a change of position from the 

8 private sector organization that employs the in9 dividual, 

10 whichever is appropriate in the context in which 

11 such term is used. 

12 ‘‘§ 3802. General provisions 

13 ‘‘(a) ASSIGNMENT AUTHORITY.—On request from or 

14 with the agreement of a private sector organization, and 

15 with the consent of the employee concerned, the head of 

16 an agency may arrange for the assignment of an employee 

17 of the agency to a private sector organization or an em18 ployee of a private sector organization to the agency. An 

19 eligible employee is an individual who—

20 ‘‘(1) works in the field of Federal acquisition or 

21 acquisition management; 

22 ‘‘(2) is considered an exceptional performer by 

23 the individual’s current employer; and 

24 ‘‘(3) is expected to assume increased acquisition 

25 management responsibilities in the future. 
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1 An employee of an agency shall be eligible to participate 

2 in this program only if the employee is employed at the 

3 GS–11 level or above (or equivalent) and is serving under 

4 a career or career-conditional appointment or an appoint5 ment of equivalent tenure in the excepted service. 

6 ‘‘(b) AGREEMENTS.—Each agency that exercises its 

7 authority under this chapter shall provide for a written 

8 agreement between the agency and the employee con9 cerned regarding the terms and conditions of the employ10 ee’s assignment. In the case of an employee of the agency, 

11 the agreement shall—

12 ‘‘(1) require the employee to serve in the civil 

13 service, upon completion of the assignment, for a pe14 riod equal to the length of the assignment; and 

15 ‘‘(2) provide that, in the event the employee 

16 fails to carry out the agreement (except for good and 

17 sufficient reason, as determined by the head of the 

18 agency from which assigned) the employee shall be 

19 liable to the United States for payment of all ex20 penses of the assignment. 

21 An amount under paragraph (2) shall be treated as a debt 

22 due the United States. 

23 ‘‘(c) TERMINATION.—Assignments may be termi24 nated by the agency or private sector organization con25 cerned for any reason at any time. 
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1 ‘‘(d) DURATION.—Assignments under this chapter 

2 shall be for a period of between 6 months and 1 year, 

3 and may be extended in 3-month increments for a total 

4 of not more than 1 additional year, except that no assign5 ment under this chapter may commence after the end of 

6 the 5-year period beginning on the date of the enactment 

7 of this chapter. 

8 ‘‘(e) ASSISTANCE.—The Administrator for Federal 

9 Procurement Policy, by agreement with the Office of Per10 sonnel Management, may assist in the administration of 

11 this chapter, including by maintaining lists of potential 

12 candidates for assignment under this chapter, establishing 

13 mentoring relationships for the benefit of individuals who 

14 are given assignments under this chapter, and publicizing 

15 the program. 

16 ‘‘(f) CONSIDERATIONS.—In exercising any authority 

17 under this chapter, an agency shall take into consider18 ation—

19 ‘‘(1) the need to ensure that small business con20 cerns are appropriately represented with respect to 

21 the assignments described in sections 3803 and 

22 3804, respectively; and 

23 ‘‘(2) how assignments described in section 3803 

24 might best be used to help meet the needs of the 
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1 agency for the training of employees in acquisition 

2 management. 

3 ‘‘§ 3803. Assignment of employees to private sector or4 ganizations 

5 ‘‘(a) IN GENERAL.—An employee of an agency as6 signed to a private sector organization under this chapter 

7 is deemed, during the period of the assignment, to be on 

8 detail to a regular work assignment in his agency. 

9 ‘‘(b) COORDINATION WITH CHAPTER 81.—Notwith10 standing any other provision of law, an employee of an 

11 agency assigned to a private sector organization under this 

12 chapter is entitled to retain coverage, rights, and benefits 

13 under subchapter I of chapter 81, and employment during 

14 the assignment is deemed employment by the United 

15 States, except that, if the employee or the employee’s de16 pendents receive from the private sector organization any 

17 payment under an insurance policy for which the premium 

18 is wholly paid by the private sector organization, or other 

19 benefit of any kind on account of the same injury or death, 

20 then, the amount of such payment or benefit shall be cred21 ited against any compensation otherwise payable under 

22 subchapter I of chapter 81. 

23 ‘‘(c) REIMBURSEMENTS.—The assignment of an em24 ployee to a private sector organization under this chapter 

25 may be made with or without reimbursement by the pri-
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1 vate sector organization for the travel and transportation 

2 expenses to or from the place of assignment, subject to 

3 the same terms and conditions as apply with respect to 

4 an employee of a Federal agency or a State or local gov5 ernment under section 3375, and for the pay, or a part 

6 thereof, of the employee during assignment. Any reim7 bursements shall be credited to the appropriation of the 

8 agency used for paying the travel and transportation ex9 penses or pay. 

10 ‘‘(d) TORT LIABILITY; SUPERVISION.—The Federal 

11 Tort Claims Act and any other Federal tort liability stat12 ute apply to an employee of an agency assigned to a pri13 vate sector organization under this chapter. The super14 vision of the duties of an employee of an agency so as15 signed to a private sector organization may be governed 

16 by an agreement between the agency and the organization. 

17 ‘‘(e) SMALL BUSINESS CONCERNS.—

18 ‘‘(1) IN GENERAL.—The head of each agency 

19 shall take such actions as may be necessary to en20 sure that, of the assignments made under this chap21 ter from such agency to private sector organizations 

22 in each year, at least 20 percent are to small busi23 ness concerns. 

24 ‘‘(2) DEFINITIONS.—For purposes of this sub25 section—
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1 ‘‘(A) the term ‘small business concern’ 

2 means a business concern that satisfies the 

3 definitions and standards specified by the Ad4 ministrator of the Small Business Administra5 tion under section 3(a)(2) of the Small Busi6 ness Act (as from time to time amended by the 

7 Administrator); 

8 ‘‘(B) the term ‘year’ refers to the 12-

9 month period beginning on the date of the en10 actment of this chapter, and each succeeding 

11 12-month period in which any assignments 

12 under this chapter may be made; and 

13 ‘‘(C) the assignments ‘made’ in a year are 

14 those commencing in such year. 

15 ‘‘(3) REPORTING REQUIREMENT.—An agency 

16 which fails to comply with paragraph (1) in a year 

17 shall, within 90 days after the end of such year, sub18 mit a report to the Committees on Government Re19 form and Small Business of the House of Represent20 atives and the Committees on Governmental Affairs 

21 and Small Business of the Senate. The report shall 

22 include—

23 ‘‘(A) the total number of assignments 

24 made under this chapter from such agency to 

25 private sector organizations in the year; 
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1 ‘‘(B) of that total number, the number 

2 (and percentage) made to small business con3 cerns; and 

4 ‘‘(C) the reasons for the agency’s non5 compliance with paragraph (1). 

6 ‘‘(4) EXCLUSION.—This subsection shall not 

7 apply to an agency in any year in which it makes 

8 fewer than 5 assignments under this chapter to pri9 vate sector organizations. 

10 ‘‘§ 3804. Assignment of employees from private sector 

11 organizations 

12 ‘‘(a) IN GENERAL.—An employee of a private sector 

13 organization assigned to an agency under this chapter is 

14 deemed, during the period of the assignment, to be on de15 tail to such agency. 

16 ‘‘(b) TERMS AND CONDITIONS.—An employee of a 

17 private sector organization assigned to an agency under 

18 this chapter—

19 ‘‘(1) may continue to receive pay and benefits 

20 from the private sector organization from which he 

21 is assigned; 

22 ‘‘(2) is deemed, notwithstanding subsection (a), 

23 to be an employee of the agency for the purposes 

24 of—

25 ‘‘(A) chapter 73; 
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1 ‘‘(B) sections 201, 203, 205, 207, 208, 

2 209, 603, 606, 607, 643, 654, 1905, and 1913 

3 of title 18; 

4 ‘‘(C) sections 1343, 1344, and 1349(b) of 

5 title 31; 

6 ‘‘(D) the Federal Tort Claims Act and any 

7 other Federal tort liability statute; 

8 ‘‘(E) the Ethics in Government Act of 

9 1978; 

10 ‘‘(F) section 1043 of the Internal Revenue 

11 Code of 1986; and 

12 ‘‘(G) section 27 of the Office of Federal 

13 Procurement Policy Act; 

14 ‘‘(3) may not have access to any trade secrets 

15 or to any other nonpublic information which is of 

16 commercial value to the private sector organization 

17 from which he is assigned; and 

18 ‘‘(4) is subject to such regulations as the Presi19 dent may prescribe. 

20 The supervision of an employee of a private sector organi21 zation assigned to an agency under this chapter may be 

22 governed by agreement between the agency and the private 

23 sector organization concerned. Such an assignment may 

24 be made with or without reimbursement by the agency for 

25 the pay, or a part thereof, of the employee during the pe-
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1 riod of assignment, or for any contribution of the private 

2 sector organization to employee benefit systems. 

3 ‘‘(c) COORDINATION WITH CHAPTER 81.—An em4 ployee of a private sector organization assigned to an 

5 agency under this chapter who suffers disability or dies 

6 as a result of personal injury sustained while performing 

7 duties during the assignment shall be treated, for the pur8 pose of subchapter I of chapter 81, as an employee as de9 fined by section 8101 who had sustained the injury in the 

10 performance of duty, except that, if the employee or the 

11 employee’s dependents receive from the private sector or12 ganization any payment under an insurance policy for 

13 which the premium is wholly paid by the private sector 

14 organization, or other benefit of any kind on account of 

15 the same injury or death, then, the amount of such pay16 ment or benefit shall be credited against any compensation 

17 otherwise payable under subchapter I of chapter 81. 

18 ‘‘(d) PROHIBITION AGAINST CHARGING CERTAIN

19 COSTS TO THE FEDERAL GOVERNMENT.—A private sec20 tor organization may not charge the Federal Government, 

21 as direct or indirect costs under a Federal contract, the 

22 costs of pay or benefits paid by the organization to an 

23 employee assigned to an agency under this chapter for the 

24 period of the assignment. 
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1 ‘‘§ 3805. Reporting requirement 

2 ‘‘(a) IN GENERAL.—The Office of Personnel Manage3 ment shall, not later than April 30 and October 31 of each 

4 year, prepare and submit to the Committee on Govern5 ment Reform of the House of Representatives and the 

6 Committee on Governmental Affairs of the Senate a semi7 annual report summarizing the operation of this chapter 

8 during the immediately preceding 6-month period ending 

9 on March 31 and September 30, respectively. 

10 ‘‘(b) CONTENT.—Each report shall include, with re11 spect to the 6-month period to which such report relates—

12 ‘‘(1) the total number of individuals assigned 

13 to, and the total number of individuals assigned 

14 from, each agency during such period; 

15 ‘‘(2) a brief description of each assignment in16 cluded under paragraph (1), including—

17 ‘‘(A) the name of the assigned individual, 

18 as well as the private sector organization and 

19 the agency (including the specific bureau or 

20 other agency component) to or from which such 

21 individual was assigned; 

22 ‘‘(B) the respective positions to and from 

23 which the individual was assigned, including the 

24 duties and responsibilities and the pay grade or 

25 level associated with each; and 
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1 ‘‘(C) the duration and objectives of the in2 dividual’s assignment; and 

3 ‘‘(3) such other information as the Office con4 siders appropriate. 

5 ‘‘(c) PUBLICATION.—A copy of each report submitted 

6 under subsection (a)—

7 ‘‘(1) shall be published in the Federal Register; 

8 and 

9 ‘‘(2) shall be made publicly available on the 

10 Internet. 

11 ‘‘(d) AGENCY COOPERATION.—On request of the Of12 fice, agencies shall furnish such information and reports 

13 as the Office may require in order to carry out this sec14 tion. 

15 ‘‘§ 3806. Regulations 

16 ‘‘The Director of the Office of Personnel Manage17 ment shall prescribe regulations for the administration of 

18 this chapter.’’. 

19 (b) REPORT.—Not later than 4 years after the date 

20 of the enactment of this Act, the General Accounting Of21 fice shall prepare and submit to the Committee on Govern22 ment Reform of the House of Representatives and the 

23 Committee on Governmental Affairs of the Senate a report 

24 on the operation of chapter 38 of title 5, United States 
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1 Code (as added by this section). Such report shall in2 clude—

3 (1) an evaluation of the effectiveness of the pro4 gram established by such chapter; and 

5 (2) a recommendation as to whether such pro6 gram should be continued (with or without modifica7 tion) or allowed to lapse. 

8 (c) CLERICAL AMENDMENT.—The table of contents 

9 at the beginning of part III of title 5, United States Code, 

10 is amended by inserting after the item relating to chapter 

11 37 the following:

‘‘38. Acquisition Professional Exchange Program ................................... 3801’’.

12 (d) ETHICS PROVISIONS.—

13 (1) ONE-YEAR RESTRICTION ON CERTAIN COM14 MUNICATIONS.—Section 207(c)(2)(A)(v) of title 18, 

15 United States Code, is amended by inserting ‘‘or 

16 38’’ after ‘‘chapter 37’’. 

17 (2) DISCLOSURE OF CONFIDENTIAL INFORMA18 TION.—Section 1905 of title 18, United States Code, 

19 is amended by inserting ‘‘or 38’’ after ‘‘chapter 37’’. 

20 (3) CONTRACT ADVICE.—Section 207(l) of title 

21 18, United States Code, is amended—

22 (A) in the subsection heading, by striking 

23 ‘‘DETAILS.—’’ and inserting ‘‘DETAILEES.—’’; 

24 and 
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1 (B) by inserting ‘‘or 38’’ after ‘‘chapter 

2 37’’. 

3 (4) RESTRICTION ON DISCLOSURE OF PRO4 CUREMENT INFORMATION.—Section 27 of the Office 

5 of Federal Procurement Policy Act (41 U.S.C. 423) 

6 is amended in the last sentence of subsection (a)(1) 

7 by inserting ‘‘or 38’’ after ‘‘chapter 37’’. 

8 (e) TECHNICAL AND CONFORMING AMENDMENTS.—

9 (1) AMENDMENTS TO TITLE 5, UNITED

10 STATES CODE.—Title 5, United States Code, is 

11 amended—

12 (A) in section 3111(d), by inserting ‘‘or 38’’ 

13 after ‘‘chapter 37’’; 

14 (B) in section 7353(b)(4), by inserting ‘‘or 38’’ 

15 after ‘‘chapter 37’’. 

16 (2) AMENDMENT TO TITLE 18, UNITED STATES

17 CODE.—Section 209(g) of title 18, United States 

18 Code, is amended—

19 (A) in paragraph (1), by inserting ‘‘or 38’’ after 

20 ‘‘chapter 37’’; and 

21 (B) by amending paragraph (2) to read as fol22 lows: 

23 ‘‘(2) For purposes of this subsection, the term ‘agen24 cy’—
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1 ‘‘(A) with respect to assignments under chapter 

2 37 of title 5, means an agency (as defined in section 

3 3701 of title 5) and the Office of the Chief Tech4 nology Officer of the District of Columbia; and 

5 ‘‘(B) with respect to assignments under chapter 

6 38 of title 5, means an agency (as defined by section 

7 3801 of title 5).’’. 

8 (3) ELIGIBILITY FOR THRIFT SAVINGS PLAN.—

9 Section 125(c)(1)(D) of Public Law 100–238 (101 

10 Stat. 1757; 5 U.S.C. 8432 note) is amended by in11 serting ‘‘or 38’’ after ‘‘chapter 37’’. 

12 SEC. 104. ACQUISITION WORKFORCE RECRUITMENT AND 

13 RETENTION PROGRAM. 

14 (a) AUTHORITY TO CARRY OUT PROGRAM.—For 

15 purposes of sections 3304, 5333, and 5753 of title 5, 

16 United States Code, the head of a department or agency 

17 of the United States (including the Secretary of Defense) 

18 may determine that certain Federal acquisition positions 

19 are ‘‘shortage category’’ positions in order to recruit and 

20 appoint directly to positions of employment in the depart21 ment or agency highly qualified persons, such as any per22 son who—

23 (1) holds a bachelor’s degree from an accredited 

24 institution of higher education; 
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1 (2) holds, from an accredited law school or an 

2 accredited institution of higher education—

3 (A) a law degree; or 

4 (B) a masters or equivalent degree in busi5 ness administration, public administration, or 

6 systems engineering; or 

7 (3) has significant experience with commercial 

8 acquisition practices, terms, and conditions. 

9 (b) REQUIREMENTS.—The exercise of authority to 

10 take a personnel action under this section shall be subject 

11 to policies prescribed by the Office of Personnel Manage12 ment that govern direct recruitment, including policies re13 quiring appointment of a preference eligible who satisfies 

14 the qualification requirements. 

15 (c) TERMINATION OF AUTHORITY.—The head of a 

16 department or agency may not appoint a person to a posi17 tion of employment under this section after September 30, 

18 2007. 

19 (d) REPORT.—Not later than March 31, 2007, the 

20 Administrator for Federal Procurement Policy shall sub21 mit to Congress a report on the implementation of this 

22 section. The report shall include—

23 (1) the Administrator’s assessment of the effi24 cacy of the exercise of the authority provided in this 
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1 section in attracting employees with unusually high 

2 qualifications to the acquisition workforce; and 

3 (2) any recommendations considered appro4 priate by the Administrator on whether the author5 ity to carry out the program should be extended. 

6 SEC. 105. ARCHITECTURAL AND ENGINEERING ACQUISI7 TION WORKFORCE. 

8 The Administrator for Federal Procurement Policy, 

9 in consultation with the Secretary of Defense, the Admin10 istrator of General Services, and the Director of the Office 

11 of Personnel Management, shall develop and implement a 

12 plan to ensure that the Federal Government maintains the 

13 necessary capability with respect to the acquisition of ar14 chitectural and engineering services to—

15 (1) ensure that Federal Government employees 

16 have the expertise to determine agency requirements 

17 for such services; 

18 (2) establish priorities and programs (including 

19 acquisition plans); 

20 (3) establish professional standards; 

21 (4) develop scopes of work; and 

22 (5) award and administer contracts for such 

23 services. 
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1 TITLE II—ADAPTATION OF BUSI2 NESS ACQUISITION PRAC3 TICES 

4 Subtitle A—Adaptation of Business 

5 Management Practices 

6 SEC. 201. CHIEF ACQUISITION OFFICERS. 

7 (a) APPOINTMENT OF CHIEF ACQUISITION OFFI8 CERS.—(1) Section 16 of the Office of Federal Procure9 ment Policy Act (41 U.S.C. 414) is amended to read as 

10 follows:

11 ‘‘SEC. 16. AGENCY CHIEF ACQUISITION OFFICERS. 

12 ‘‘(a) ESTABLISHMENT OF AGENCY CHIEF ACQUISI13 TION OFFICERS.—The head of each executive agency 

14 (other than the Department of Defense) shall appoint or 

15 designate a non-career employee as Chief Acquisition Offi16 cer for the agency, who shall—

17 ‘‘(1) have acquisition management as that offi18 cial’s primary duty; and 

19 ‘‘(2) advise and assist the head of the executive 

20 agency and other agency officials to ensure that the 

21 mission of the executive agency is achieved through 

22 the management of the agency’s acquisition activi23 ties. 
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1 ‘‘(b) AUTHORITY AND FUNCTIONS OF AGENCY CHIEF

2 ACQUISITION OFFICERS.—The functions of each Chief Ac3 quisition Officer shall include—

4 ‘‘(1) monitoring the performance of acquisition 

5 activities and acquisition programs of the executive 

6 agency, evaluating the performance of those pro7 grams on the basis of applicable performance meas8 urements, and advising the head of the executive 

9 agency regarding the appropriate business strategy 

10 to achieve the mission of the executive agency; 

11 ‘‘(2) increasing the use of full and open com12 petition in the acquisition of property and services 

13 by the executive agency by establishing policies, pro14 cedures, and practices that ensure that the executive 

15 agency receives a sufficient number of sealed bids or 

16 competitive proposals from responsible sources to 

17 fulfill the Government’s requirements (including per18 formance and delivery schedules) at the best value 

19 considering the nature of the property or service 

20 procured; 

21 ‘‘(3) making acquisition decisions consistent 

22 with all applicable laws and establishing clear lines 

23 of authority, accountability, and responsibility for 

24 acquisition decisionmaking within the executive 

25 agency; 
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1 ‘‘(4) managing the direction of acquisition pol2 icy for the executive agency, including implementa3 tion of the unique acquisition policies, regulations, 

4 and standards of the executive agency; 

5 ‘‘(5) developing and maintaining an acquisition 

6 career management program in the executive agency 

7 to ensure that there is an adequate professional 

8 workforce; and 

9 ‘‘(6) as part of the strategic planning and per10 formance evaluation process required under section 

11 306 of title 5, United States Code, and sections 

12 1105(a)(28), 1115, 1116, and 9703 of title 31, 

13 United States Code—

14 ‘‘(A) assessing the requirements estab15 lished for agency personnel regarding knowl16 edge and skill in acquisition resources manage17 ment and the adequacy of such requirements 

18 for facilitating the achievement of the perform19 ance goals established for acquisition manage20 ment; 

21 ‘‘(B) in order to rectify any deficiency in 

22 meeting such requirements, developing strate23 gies and specific plans for hiring, training, and 

24 professional development; and 
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1 ‘‘(C) reporting to the head of the executive 

2 agency on the progress made in improving ac3 quisition management capability.’’. 

4 (2) The item relating to section 16 in the table of 

5 contents in section 1(b) of such Act is amended to read 

6 as follows:

‘‘Sec. 16. Chief Acquisition Officers.’’.

7 (b) REFERENCES TO SENIOR PROCUREMENT EXECU8 TIVE.—(1) The Office of Federal Procurement Policy Act 

9 (41 U.S.C. 403 et seq.), title III of the Federal Property 

10 and Administrative Services Act of 1949, and title 10, 

11 United States Code, are each amended by striking ‘‘senior 

12 procurement executive’’ and ‘‘senior procurement execu13 tives’’ each place such terms appear and inserting ‘‘Chief 

14 Acquisition Officer’’ and ‘‘Chief Acquisition Officers’’, re15 spectively. 

16 (2) Any reference to a senior procurement executive 

17 of a department or agency of the United States in any 

18 other provision of law or regulation, document, or record 

19 of the United States shall be deemed to be a reference 

20 to the Chief Acquisition Officer of the department or agen21 cy. 

22 (c) TECHNICAL CORRECTION.—Section 1115(a) of 

23 title 31, United States Code, is amended by striking ‘‘sec24 tion 1105(a)(29)’’ and inserting ‘‘section 1105(a)(28)’’. 
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1 SEC. 202. CHIEF ACQUISITION OFFICERS COUNCIL. 

2 (a) ESTABLISHMENT OF COUNCIL.—The Office of 

3 Federal Procurement Policy Act (41 U.S.C. 403 et seq.) 

4 is amended by inserting after section 16 the following new 

5 section: 

6 ‘‘SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL. 

7 ‘‘(a) ESTABLISHMENT.—There is established in the 

8 executive branch a Chief Acquisition Officers Council. 

9 ‘‘(b) MEMBERSHIP.—The members of the Council 

10 shall be as follows: 

11 ‘‘(1) The Deputy Director for Management of 

12 the Office of Management and Budget, who shall act 

13 as Chairman of the Council. 

14 ‘‘(2) The Administrator for Federal Procure15 ment Policy. 

16 ‘‘(3) The chief acquisition officer of each execu17 tive agency. 

18 ‘‘(4) The Under Secretary of Defense for Ac19 quisition, Technology, and Logistics. 

20 ‘‘(5) Any other officer or employee of the 

21 United States designated by the Chairman. 

22 ‘‘(c) LEADERSHIP; SUPPORT.—(1) The Adminis23 trator for Federal Procurement Policy shall lead the ac24 tivities of the Council on behalf of the Deputy Director 

25 for Management. 
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1 ‘‘(2)(A) The Vice Chairman of the Council shall be 

2 selected by the Council from among its members. 

3 ‘‘(B) The Vice Chairman shall serve a 1-year term, 

4 and may serve multiple terms. 

5 ‘‘(3) The Administrator of General Services shall pro6 vide administrative and other support for the Council. 

7 ‘‘(d) PRINCIPAL FORUM.—The Council is designated 

8 the principal interagency forum for monitoring and im9 proving the Federal acquisition system. 

10 ‘‘(e) FUNCTIONS.—The Council shall perform func11 tions that include the following: 

12 ‘‘(1) Develop recommendations for the Director 

13 of the Office of Management and Budget on Federal 

14 acquisition policies and requirements. 

15 ‘‘(2) Share experiences, ideas, best practices, 

16 and innovative approaches related to Federal acqui17 sition. 

18 ‘‘(3) Assist the Administrator in the identifica19 tion, development, and coordination of multiagency 

20 projects and other innovative initiatives to improve 

21 Federal acquisition. 

22 ‘‘(4) Promote effective business practices that 

23 ensure the timely delivery of best value products to 

24 the Federal Government and achieve appropriate 

25 public policy objectives. 
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1 ‘‘(5) Further integrity, fairness, competition, 

2 openness, and efficiency in the Federal acquisition 

3 system. 

4 ‘‘(6) Work with the Office of Personnel Man5 agement to assess and address the hiring, training, 

6 and professional development needs of the Federal 

7 Government related to acquisition. 

8 ‘‘(7) Work with the Administrator and the Fed9 eral Acquisition Regulatory Council to promote the 

10 business practices referred to in paragraph (4) and 

11 other results of the functions carried out under this 

12 subsection.’’. 

13 (b) CLERICAL AMENDMENT.—The table of contents 

14 in section 1(b) of such Act is amended by inserting after 

15 the item relating to section 16 the following new item:

‘‘Sec. 16A. Chief Acquisition Officers Council.’’.

16 SEC. 203. STATUTORY AND REGULATORY REVIEW. 

17 (a) ESTABLISHMENT.—Not later than 90 days after 

18 the date of the enactment of this Act, the Administrator 

19 for Federal Procurement Policy shall establish an advisory 

20 panel to review laws and regulations that hinder the use 

21 of commercial practices, performance-based contracting, 

22 the performance of acquisition functions across agency 

23 lines of responsibility, and the use of Governmentwide con24 tracts. 
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1 (b) MEMBERSHIP.—The panel shall be composed of 

2 at least nine individuals who are recognized experts in ac3 quisition law and Government acquisition policy. In mak4 ing appointments to the panel, the Administrator shall—

5 (1) consult with the Secretary of Defense, the 

6 Administrator of General Services, the Committees 

7 on Armed Services and Government Reform of the 

8 House of Representatives, and the Committees on 

9 Armed Services and Governmental Affairs of the 

10 Senate, and 

11 (2) ensure that the members of the panel reflect 

12 the diverse experiences in the public and private sec13 tors. 

14 (c) DUTIES.—The panel shall—

15 (1) review all Federal acquisition laws and reg16 ulations with a view toward ensuring increased use 

17 of commercial practices and performance-based con18 tracting; and 

19 (2) make any recommendations for the repeal 

20 or amendment of such laws or regulations that are 

21 considered necessary as a result of such review—

22 (A) to eliminate any provisions in such 

23 laws or regulations that are unnecessary for the 

24 effective, efficient, and fair award and adminis-
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1 tration of contracts for the acquisition by the 

2 Federal Government of goods and services; 

3 (B) to ensure the continuing financial and 

4 ethical integrity of acquisitions by the Federal 

5 Government; and 

6 (C) to protect the best interests of the 

7 Federal Government. 

8 (d) REPORT.—Not later than one year after the es9 tablishment of the panel, the panel shall submit to the Ad10 ministrator and to the Committees on Armed Services and 

11 Government Reform of the House of Representatives and 

12 the Committees on Armed Services and Governmental Af13 fairs of the Senate a report containing a detailed state14 ment of the findings, conclusions, and recommendations 

15 of the panel. 

16 Subtitle B—Other Acquisition 

17 Improvements 

18 SEC. 211. ENSURING EFFICIENT PAYMENT. 

19 (a) REVISION TO FAR.—Not later than 180 days 

20 after the date of the enactment of this Act, the Federal 

21 Acquisition Regulation under sections 6 and 25 of the Of22 fice of Federal Procurement Policy Act shall be revised 

23 to provide the following: 

24 (1) Authority to permit, to the maximum extent 

25 practicable, Federal contractors for services to sub-
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•HR 1837 IH 

1 mit to the Federal Government invoices for payment 

2 either—

3 (A) biweekly through electronic means; or 

4 (B) monthly. 

5 (2) A requirement that for any such invoice 

6 submitted through electronic means, the date of the 

7 invoice shall be the date a proper invoice is received 

8 by the Federal Government. 

9 (3) A requirement that the Federal Government 

10 accept or reject such an invoice submitted through 

11 electronic means not later than 7 working days after 

12 the date of the invoice. 

13 (4) A requirement that all accepted invoices be 

14 paid as soon as possible, but in no event later than 

15 30 days after the date of the invoice. 

16 (b) DEFINITIONS.—In this section: 

17 (1) The term ‘‘payment’’ means an invoice pay18 ment as defined in section 32.001 of the Federal Ac19 quisition Regulation (48 C.F.R. 32.001), as in effect 

20 on May 1, 2002. 

21 (2) The term ‘‘proper invoice’’ has the meaning 

22 given that term in section 3901(a)(3) of title 31, 

23 United States Code. 
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1 SEC. 212. EXTENSION OF AUTHORITY TO CARRY OUT FRAN2 CHISE FUND PROGRAMS. 

3 Section 403(f) of the Federal Financial Management 

4 Act of 1994 (Public Law 103–356; 31 U.S.C. 501 note) 

5 is amended by striking ‘‘October 1, 2001’’ and inserting 

6 ‘‘October 1, 2006’’. 

7 SEC. 213. AGENCY ACQUISITION PROTESTS. 

8 (a) DEFENSE CONTRACTS.—(1) Chapter 137 of title 

9 10, United States Code, is amended by inserting after sec10 tion 2305a the following new section:

11 ‘‘§ 2305b. Protests

12 ‘‘(a) IN GENERAL.—An interested party may protest 

13 an acquisition of supplies or services by an agency based 

14 on an alleged violation of an acquisition law or regulation, 

15 and a decision regarding such alleged violation shall be 

16 made by the agency in accordance with this section. 

17 ‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING

18 DECISION.—(1) Except as provided in paragraph (2), a 

19 contract may not be awarded by an agency after a protest 

20 concerning the acquisition has been submitted under this 

21 section and while the protest is pending. 

22 ‘‘(2) The head of the acquisition activity responsible 

23 for the award of the contract may authorize the award 

24 of a contract, notwithstanding pending protest under this 

25 section, upon making a written finding that urgent and 
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1 compelling circumstances do not allow for waiting for a 

2 decision on the protest. 

3 ‘‘(c) RESTRICTION ON CONTRACT PERFORMANCE

4 PENDING DECISION.—(1) Except as provided in para5 graph (2), performance of a contract may not be author6 ized (and performance of the contract shall cease if per7 formance has already begun) in any case in which a pro8 test of the contract award is submitted under this section 

9 before the later of—

10 ‘‘(A) the date that is 10 days after the date of 

11 contract award; or 

12 ‘‘(B) the date that is five days after an agency 

13 debriefing date offered to an unsuccessful offeror for 

14 any debriefing that is requested and, when re15 quested, is required, under section 2305(b)(5) of 

16 this title. 

17 ‘‘(2) The head of the acquisition activity responsible 

18 for the award of a contract may authorize performance 

19 of the contract notwithstanding a pending protest under 

20 this section upon making a written finding that urgent 

21 and compelling circumstances do not allow for waiting for 

22 a decision on the protest. 

23 ‘‘(d) DEADLINE FOR DECISION.—The head of an 

24 agency shall issue a decision on a protest under this sec25 tion not later than the date that is 20 working days after 
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•HR 1837 IH 

1 the date on which the protest is submitted to such head 

2 of an agency. 

3 ‘‘(e) CONSTRUCTION.—Nothing in this section shall 

4 affect the right of an interested party to file a protest with 

5 the Comptroller General under subchapter V of chapter 

6 35 of title 31 or in the United States Court of Federal 

7 Claims. 

8 ‘‘(f) DEFINITIONS.—In this section, the terms ‘pro9 test’ and ‘interested party’ have the meanings given such 

10 terms in section 3551 of title 31.’’.

11 (2) The table of sections at the beginning of such 

12 chapter is amended by inserting after the item relating 

13 to section 2305a the following new item:

‘‘2305b. Protests.’’.

14 (b) OTHER AGENCIES.—(1) Title III of the Federal 

15 Property and Administrative Services Act of 1949 is 

16 amended by inserting after section 303M (41 U.S.C. 

17 253m) the following new section: 

18 ‘‘SEC. 303N. PROTESTS.

19 ‘‘(a) IN GENERAL.—An interested party may protest 

20 an acquisition of supplies or services by an executive agen21 cy based on an alleged violation of an acquisition law or 

22 regulation, and a decision regarding such alleged violation 

23 shall be made by the agency in accordance with this sec24 tion. 
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1 ‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING

2 DECISION.—(1) Except as provided in paragraph (2), a 

3 contract may not be awarded by an agency after a protest 

4 concerning the acquisition has been submitted under this 

5 section and while the protest is pending. 

6 ‘‘(2) The head of the acquisition activity responsible 

7 for the award of a contract may authorize the award of 

8 the contract, notwithstanding a pending protest under this 

9 section, upon making a written finding that urgent and 

10 compelling circumstances do not allow for waiting for a 

11 decision on the protest. 

12 ‘‘(c) RESTRICTION ON CONTRACT PERFORMANCE

13 PENDING DECISION.—(1) Except as provided in para14 graph (2), performance of a contract may not be author15 ized (and performance of the contract shall cease if per16 formance has already begun) in any case in which a pro17 test of the contract award is submitted under this section 

18 before the later of—

19 ‘‘(A) the date that is 10 days after the date of 

20 contract award; or 

21 ‘‘(B) the date that is five days after an agency 

22 debriefing date offered to an unsuccessful offeror for 

23 any debriefing that is requested and, when re24 quested, is required, under section 303B(e) of this 

25 title. 
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1 ‘‘(2) The head of the acquisition activity responsible 

2 for the award of a contract may authorize performance 

3 of the contract notwithstanding a pending protest under 

4 this section upon making a written finding that urgent 

5 and compelling circumstances do not allow for waiting for 

6 a decision on the protest. 

7 ‘‘(d) DEADLINE FOR DECISION.—The head of an ex8 ecutive agency shall issue a decision on a protest under 

9 this section not later than the date that is 20 working 

10 days after the date on which the protest is submitted to 

11 the executive agency. 

12 ‘‘(e) CONSTRUCTION.—Nothing in this section shall 

13 affect the right of an interested party to file a protest with 

14 the Comptroller General under subchapter V of chapter 

15 35 of title 31, United States Code, or in the United States 

16 Court of Federal Claims. 

17 ‘‘(f) DEFINITIONS.—In this section, the terms ‘pro18 test’ and ‘interested party’ have the meanings given such 

19 terms in section 3551 of title 31, United States Code.’’.

20 (2) The table of contents in section 1(b) of such Act 

21 is amended by inserting after the item relating to section 

22 303M the following new item:

‘‘303N. Protests.’’.

23 (c) CONFORMING AMENDMENT.—Section 3553(d)(4) 

24 of title 31, United States Code, is amended—
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•HR 1837 IH 

1 (1) in subparagraph (A), by striking ‘‘or’’ at 

2 the end; 

3 (2) by striking the period at the end of sub4 paragraph (B) and inserting ‘‘; or’’; and 

5 (3) by adding at the end the following new sub6 paragraph: 

7 ‘‘(C) in the case of a protest of the same matter 

8 regarding such contract that is submitted under sec9 tion 2305b of title 10 or section 303N of the Fed10 eral Property and Administrative Services Act of 

11 1949, the date that is 5 days after the date on 

12 which a decision on that protest is issued.’’. 

13 SEC. 214. IMPROVEMENTS IN CONTRACTING FOR ARCHI14 TECTURAL AND ENGINEERING SERVICES. 

15 (a) CLARIFICATION OF DEFINITION OF SURVEYING

16 AND MAPPING.—(1) Section 1102 of title 40, United 

17 States Code, is amended by adding at the end the fol18 lowing new paragraph: 

19 ‘‘(4) SURVEYING AND MAPPING.—The term 

20 ‘surveying and mapping’ means services performed 

21 by professionals such as surveyors, 

22 photogrammetrists, hydrographers, geodesists, or 

23 cartographers in the collection, storage, retrieval, or 

24 dissemination of graphical or digital data to depict 

25 natural or manmade physical features, phenomena, 
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•HR 1837 IH 

1 or boundaries of the earth and any information re2 lated to such data, including any such data that 

3 comprises a survey, map, chart, geographic informa4 tion system, remotely sensed image or data, or an 

5 aerial photograph.’’. 

6 (2) The Federal Acquisition Regulation shall be re7 vised to include the definition added by subsection (a) of 

8 this section. 

9 (b) TITLE 10.—Section 2855(b) of title 10, United 

10 States Code, is amended—

11 (1) in paragraph (2), by striking ‘‘$85,000’’ 

12 and inserting ‘‘$300,000’’; and 

13 (2) by adding at the end the following new 

14 paragraph:

15 ‘‘(4) The selection and competition require16 ments described in subsection (a) shall apply to any 

17 contract for architectural and engineering services 

18 (including surveying and mapping services) that is 

19 entered into by the head of an agency (as such term 

20 is defined in section 2302 of this title).’’. 

21 (c) ARCHITECTURAL AND ENGINEERING SERV22 ICES.—Architectural and engineering services (as defined 

23 in section 1102 of title 40, United States Code) shall not 

24 be offered under multiple-award schedule contracts en25 tered into by the Administrator of General Services or 
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1 under Governmentwide task and delivery-order contracts 

2 entered into under sections 2304a and 2304b of title 10, 

3 United States Code, or sections 303H and 303I of the 

4 Federal Property and Administrative Services Act of 1949 

5 (41 U.S.C. 253h and 253i) unless such services—

6 (1) are performed under the direct supervision 

7 of a professional engineer licensed in a State; and 

8 (2) are awarded in accordance with the selec9 tion procedures set forth in chapter 11 of title 40, 

10 United States Code. 

11 SEC. 215. AUTHORIZATION OF TELECOMMUTING FOR FED12 ERAL CONTRACTORS. 

13 (a) AMENDMENT TO THE FEDERAL ACQUISITION

14 REGULATION.—Not later than 180 days after the date of 

15 the enactment of this Act, the Federal Acquisition Regu16 latory Council shall amend the Federal Acquisition Regu17 lation issued in accordance with sections 6 and 25 of the 

18 Office of Federal Procurement Policy Act (41 U.S.C. 405 

19 and 421) to permit telecommuting by employees of Fed20 eral Government contractors in the performance of con21 tracts entered into with executive agencies. 

22 (b) CONTENT OF AMENDMENT.—The regulation 

23 issued pursuant to subsection (a) shall, at a minimum, 

24 provide that solicitations for the acquisition of property 
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•HR 1837 IH 

1 or services may not set forth any requirement or evalua2 tion criteria that would—

3 (1) render an offeror ineligible to enter into a 

4 contract on the basis of the inclusion of a plan of 

5 the offeror to permit the offeror’s employees to tele6 commute; or 

7 (2) reduce the scoring of an offer on the basis 

8 of the inclusion in the offer of a plan of the offeror 

9 to permit the offeror’s employees to telecommute, 

10 unless the contracting officer concerned first—

11 (A) determines that the requirements of 

12 the agency, including the security requirements 

13 of the agency, cannot be met if the telecom14 muting is permitted; and 

15 (B) documents in writing the basis for that 

16 determination. 

17 (c) GAO REPORT.—Not later than one year after the 

18 date on which the regulation required by subsection (a) 

19 is published in the Federal Register, the Comptroller Gen20 eral shall submit to Congress—

21 (1) an evaluation of—

22 (A) the conformance of the regulations 

23 with law; and 

24 (B) the compliance by executive agencies 

25 with the regulations; and 
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•HR 1837 IH 

1 (2) any recommendations that the Comptroller 

2 General considers appropriate. 

3 (d) DEFINITION.—In this section, the term ‘‘execu4 tive agency’’ has the meaning given that term in section 

5 4 of the Office of Federal Procurement Policy Act (41 

6 U.S.C. 403). 

7 TITLE III—CONTRACT 

8 INCENTIVES

9 SEC. 301. SHARE-IN-SAVINGS INITIATIVES. 

10 (a) DEFENSE CONTRACTS.—Section 2332 of title 10, 

11 United States Code, is amended to read as follows: 

12 ‘‘§ 2332. Share-in-savings contracts 

13 ‘‘(a) AUTHORITY TO ENTER INTO SHARE-IN-SAV14 INGS CONTRACTS.—(1) The head of an agency may enter 

15 into a share-in-savings contract in which the Government 

16 awards a contract to improve mission-related or adminis17 trative processes or to accelerate the achievement of its 

18 mission and share with the contractor in savings achieved 

19 through contract performance. 

20 ‘‘(2)(A) Except as provided in subparagraph (B), a 

21 share-in-savings contract shall be awarded for a period of 

22 not more than five years. 

23 ‘‘(B) A share-in-savings contract may be awarded for 

24 a period greater than five years, but not more than 10 
44

•HR 1837 IH 

1 years, if the head of the agency determines in writing prior 

2 to award of the contract that—

3 ‘‘(i) the level of risk to be assumed and the in4 vestment to be undertaken by the contractor is likely 

5 to inhibit the government from obtaining the needed 

6 performance competitively at a fair and reasonable 

7 price if the contract is limited in duration to a pe8 riod of five years or less; and 

9 ‘‘(ii) the performance to be acquired is likely to 

10 continue for a period of time sufficient to generate 

11 reasonable benefit for the government. 

12 ‘‘(3) Contracts awarded pursuant to the authority of 

13 this section shall, to the maximum extent practicable, be 

14 performance-based contracts that identify objective out15 comes and contain performance standards that will be 

16 used to measure achievement and milestones that must 

17 be met before payment is made. 

18 ‘‘(4) Contracts awarded pursuant to the authority of 

19 this section shall include a provision containing a quantifi20 able baseline that is to be the basis upon which a savings 

21 share ratio is established that governs the amount of pay22 ment a contractor is to receive under the contract. Before 

23 commencement of performance of such a contract, the 

24 chief acquisition officer of the agency shall determine in 
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1 writing that the terms of the provision are quantifiable 

2 and will likely yield value to the Government. 

3 ‘‘(5)(A) The head of the agency may retain savings 

4 realized through the use of a share-in-savings contract 

5 under this section that are in excess of the total amount 

6 of savings paid to the contractor under the contract. Ex7 cept as provided in subparagraph (B), savings shall be 

8 credited to the appropriation or fund against which 

9 charges were made to carry out the contract. 

10 ‘‘(B) Amounts retained by the agency under this sub11 section shall—

12 ‘‘(i) without further appropriation, remain 

13 available until expended; and 

14 ‘‘(ii) be applied first to fund any contingent li15 abilities associated with share-in-savings procure16 ments that are not fully funded. 

17 ‘‘(b) CANCELLATION AND TERMINATION.—(1) If 

18 funds are not made available for the continuation of a 

19 share-in-savings contract entered into under this section 

20 in a subsequent fiscal year, the contract shall be canceled 

21 or terminated. The costs of cancellation or termination 

22 may be paid out of—

23 ‘‘(A) appropriations available for the perform24 ance of the contract; 
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1 ‘‘(B) appropriations available for acquisition of 

2 the type of property or services procured under the 

3 contract, and not otherwise obligated; or 

4 ‘‘(C) funds subsequently appropriated for pay5 ments of costs of cancellation or termination, subject 

6 to the limitations in paragraph (3). 

7 ‘‘(2) The amount payable in the event of cancellation 

8 or termination of a share-in-savings contract shall be ne9 gotiated with the contractor at the time the contract is 

10 entered into. 

11 ‘‘(3) The head of an agency may enter into share12 in-savings contracts under this section in any given fiscal 

13 year even if funds are not made specifically available for 

14 the full costs of cancellation or termination of the contract 

15 if funds are available and sufficient to make payments 

16 with respect to the first fiscal year of the contract and 

17 the following conditions are met regarding the funding of 

18 cancellation and termination liability: 

19 ‘‘(A) The amount of unfunded contingent liabil20 ity for the contract does not exceed the lesser of—

21 ‘‘(i) 50 percent of the estimated costs of a 

22 cancellation or termination; or 

23 ‘‘(ii) $10,000,000. 

24 ‘‘(B) Unfunded contingent liability in excess of 

25 $5,000,000 has been approved by the Director of the 
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1 Office of Management and Budget or the Director’s 

2 designee. 

3 ‘‘(c) DEFINITIONS.—In this section: 

4 ‘‘(1) The term ‘contractor’ means a private en5 tity that enters into a contract with an agency. 

6 ‘‘(2) The term ‘savings’ means—

7 ‘‘(A) monetary savings to an agency; or 

8 ‘‘(B) savings in time or other benefits real9 ized by the agency, including enhanced reve10 nues. 

11 ‘‘(3) The term ‘share-in-savings contract’ means 

12 a contract under which—

13 ‘‘(A) a contractor provides solutions for—

14 ‘‘(i) improving the agency’s mission15 related or administrative processes; or 

16 ‘‘(ii) accelerating the achievement of 

17 agency missions; and 

18 ‘‘(B) the head of the agency pays the con19 tractor an amount equal to a portion of the sav20 ings derived by the agency from—

21 ‘‘(i) any improvements in mission-re22 lated or administrative processes that re23 sult from implementation of the solution; 

24 or 
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1 ‘‘(ii) acceleration of achievement of 

2 agency missions.’’. 

3 (b) OTHER CONTRACTS.—Section 317 of the Federal 

4 Property and Administrative Services Act of 1949 is 

5 amended to read as follows: 

6 ‘‘SEC. 317. SHARE-IN-SAVINGS CONTRACTS. 

7 ‘‘(a) AUTHORITY TO ENTER INTO SHARE-IN-SAV8 INGS CONTRACTS.—(1) The head of an executive agency 

9 may enter into a share-in-savings contract in which the 

10 Government awards a contract to improve mission-related 

11 or administrative processes or to accelerate the achieve12 ment of its mission and share with the contractor in sav13 ings achieved through contract performance. 

14 ‘‘(2)(A) Except as provided in subparagraph (B), a 

15 share-in-savings contract shall be awarded for a period of 

16 not more than five years. 

17 ‘‘(B) A share-in-savings contract may be awarded for 

18 a period greater than five years, but not more than 10 

19 years, if the head of the agency determines in writing prior 

20 to award of the contract that—

21 ‘‘(i) the level of risk to be assumed and the in22 vestment to be undertaken by the contractor is likely 

23 to inhibit the government from obtaining the needed 

24 performance competitively at a fair and reasonable 
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1 price if the contract is limited in duration to a pe2 riod of five years or less; and 

3 ‘‘(ii) the performance to be acquired is likely to 

4 continue for a period of time sufficient to generate 

5 reasonable benefit for the government. 

6 ‘‘(3) Contracts awarded pursuant to the authority of 

7 this section shall, to the maximum extent practicable, be 

8 performance-based contracts that identify objective out9 comes and contain performance standards that will be 

10 used to measure achievement and milestones that must 

11 be met before payment is made.

12 ‘‘(4) Contracts awarded pursuant to the authority of 

13 this section shall include a provision containing a quantifi14 able baseline that is to be the basis upon which a savings 

15 share ratio is established that governs the amount of pay16 ment a contractor is to receive under the contract. Before 

17 commencement of performance of such a contract, the 

18 chief acquisition officer of the agency shall determine in 

19 writing that the terms of the provision are quantifiable 

20 and will likely yield value to the Government. 

21 ‘‘(5)(A) The head of the agency may retain savings 

22 realized through the use of a share-in-savings contract 

23 under this section that are in excess of the total amount 

24 of savings paid to the contractor under the contract. Ex25 cept as provided in subparagraph (B), savings shall be 
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1 credited to the appropriation or fund against which 

2 charges were made to carry out the contract. 

3 ‘‘(B) Amounts retained by the agency under this sub4 section shall—

5 ‘‘(i) without further appropriation, remain 

6 available until expended; and 

7 ‘‘(ii) be applied first to fund any contingent li8 abilities associated with share-in-savings procure9 ments that are not fully funded. 

10 ‘‘(b) CANCELLATION AND TERMINATION.—(1) If 

11 funds are not made available for the continuation of a 

12 share-in-savings contract entered into under this section 

13 in a subsequent fiscal year, the contract shall be canceled 

14 or terminated. The costs of cancellation or termination 

15 may be paid out of—

16 ‘‘(A) appropriations available for the perform17 ance of the contract; 

18 ‘‘(B) appropriations available for acquisition of 

19 the type of property or services procured under the 

20 contract, and not otherwise obligated; or 

21 ‘‘(C) funds subsequently appropriated for pay22 ments of costs of cancellation or termination, subject 

23 to the limitations in paragraph (3). 

24 ‘‘(2) The amount payable in the event of cancellation 

25 or termination of a share-in-savings contract shall be ne-
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1 gotiated with the contractor at the time the contract is 

2 entered into. 

3 ‘‘(3) The head of an executive agency may enter into 

4 share-in-savings contracts under this section in any given 

5 fiscal year even if funds are not made specifically available 

6 for the full costs of cancellation or termination of the con7 tract if funds are available and sufficient to make pay8 ments with respect to the first fiscal year of the contract 

9 and the following conditions are met regarding the funding 

10 of cancellation and termination liability: 

11 ‘‘(A) The amount of unfunded contingent liabil12 ity for the contract does not exceed the lesser of—

13 ‘‘(i) 50 percent of the estimated costs of a 

14 cancellation or termination; or 

15 ‘‘(ii) $10,000,000. 

16 ‘‘(B) Unfunded contingent liability in excess of 

17 $5,000,000 has been approved by the Director of the 

18 Office of Management and Budget or the Director’s 

19 designee. 

20 ‘‘(c) DEFINITIONS—In this section: 

21 ‘‘(1) The term ‘contractor’ means a private en22 tity that enters into a contract with an agency. 

23 ‘‘(2) The term ‘savings’ means—

24 ‘‘(A) monetary savings to an agency; or 
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1 ‘‘(B) savings in time or other benefits real2 ized by the agency, including enhanced reve3 nues. 

4 ‘‘(3) The term ‘share-in-savings contract’ means 

5 a contract under which—

6 ‘‘(A) a contractor provides solutions for—

7 ‘‘(i) improving the agency’s mission8 related or administrative processes; or 

9 ‘‘(ii) accelerating the achievement of 

10 agency missions; and 

11 ‘‘(B) the head of the agency pays the con12 tractor an amount equal to a portion of the sav13 ings derived by the agency from—

14 ‘‘(i) any improvements in mission-re15 lated or administrative processes that re16 sult from implementation of the solution; 

17 or 

18 ‘‘(ii) acceleration of achievement of 

19 agency missions.’’.

20 (c) DEVELOPMENT OF INCENTIVES.—The Director 

21 of the Office of Management and Budget shall—

22 (1) identify potential opportunities for the use 

23 of share-in-savings contracts; 

24 (2) provide guidance to executive agencies for 

25 determining mutually beneficial savings share ratios 
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1 and baselines from which savings may be measured; 

2 and 

3 (3) in consultation with the Committee on Gov4 ernmental Affairs of the Senate, the Committee on 

5 Government Reform of the House of Representa6 tives, and executive agencies, develop techniques to 

7 permit an executive agency to retain a portion of the 

8 savings (after payment of the contractor’s share of 

9 the savings) derived from share-in-savings contracts 

10 as funds are appropriated to the agency in future 

11 fiscal years. 

12 (d) REGULATIONS.—Not later than 180 days after 

13 the date of the enactment of this Act, the Federal Acquisi14 tion Regulation shall be revised to implement the provi15 sions enacted by this section. Such revisions shall—

16 (1) provide for the use of competitive proce17 dures in the selection and award of share-in-savings 

18 contracts to—

19 (A) ensure the contractor’s share of sav20 ings reflects the risk involved and market condi21 tions; and 

22 (B) otherwise yield best value to the gov23 ernment; and 

24 (2) allow appropriate regulatory flexibility to fa25 cilitate the use of share-in-savings contracts by exec-
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1 utive agencies, including the use of innovative provi2 sions for technology refreshment and nonstandard 

3 Federal Acquisition Regulation contract clauses. 

4 (e) OMB REPORT TO CONGRESS.—In consultation 

5 with executive agencies, the Director of the Office of Man6 agement and Budget shall, not later than 2 years after 

7 the completion of the revisions to the Federal Acquisition 

8 Regulation under subsection (d), submit to Congress a re9 port containing—

10 (1) a description of the number of share-in-sav11 ings contracts entered into by each executive agency 

12 under by this section and the amendments made by 

13 this section, and, for each contract identified—

14 (A) the performance acquired; 

15 (B) the total amount of payments made to 

16 the contractor; and 

17 (C) the total amount of savings or other 

18 measurable benefits realized; 

19 (2) a description of the ability of agencies to de20 termine the baseline costs of a project against which 

21 savings can be measured; and 

22 (3) any recommendations, as the Director 

23 deems appropriate, regarding additional changes in 

24 law that may be necessary to ensure effective use of 

25 share-in-savings contracts by executive agencies. 
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1 (f) DEFINITIONS.—In this section, the terms ‘‘con2 tractor’’, ‘‘savings’’, and ‘‘share-in-savings contract’’ have 

3 the meanings given those terms in section 2332 of title 

4 10, United States Code, and section 317 of the Federal 

5 Property and Administrative Services Act of 1949 (as 

6 amended by subsections (a) and (b)). 

7 (g) REPEAL OF SUPERSEDED PROVISIONS.—Sub8 sections (c), (d), (e), (f), (g), and (i) of section 210 of 

9 the E-Government Act of 2002 (Public Law 107–317; 116 

10 Stat. 2936) are repealed. 

11 SEC. 302. INCENTIVES FOR CONTRACT EFFICIENCY. 

12 (a) INCENTIVES FOR CONTRACT EFFICIENCY.—The 

13 Office of Federal Procurement Policy Act (41 U.S.C. 403 

14 et seq.) is amended by adding at the end the following 

15 new section: 

16 ‘‘SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF 

17 SERVICES CONTRACTS. 

18 ‘‘(a) OPTIONS FOR SERVICES CONTRACTS.—The 

19 head of an executive agency may include in a contract for 

20 the performance of services an option to extend the con21 tract by one or more additional periods on the basis of 

22 exceptional performance by the contractor. A contract that 

23 provides for such extensions shall include performance 

24 standards for measuring performance under the contract 
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1 and, to the maximum extent practicable, be performance2 based. 

3 ‘‘(b) DEFINITION OF PERFORMANCE-BASED.—In 

4 this section, the term ‘performance-based’, with respect to 

5 a contract, task order, or contracting, means that the con6 tract, task order, or contracting, respectively, includes the 

7 use of performance work statements that set forth con8 tract requirements in clear, specific, and objective terms 

9 with measurable outcomes.’’. 

10 (b) CLERICAL AND TECHNICAL AMENDMENTS.—(1) 

11 The table of contents in section 1(b) of such Act is amend12 ed by striking the last item and inserting the following:

‘‘Sec. 40. Protection of constitutional rights of contractors. 

‘‘Sec. 41. Incentives for efficient performance of services contracts.’’.

13 (2) The section before section 41 of such Act (as 

14 added by subsection (a)) is redesignated as section 40. 

15 TITLE IV—ACQUISITIONS OF 

16 COMMERCIAL ITEMS 

17 SEC. 401. ADDITIONAL INCENTIVE FOR USE OF PERFORM18 ANCE-BASED CONTRACTING FOR SERVICES.

19 (a) OTHER CONTRACTS.—Section 41 of the Office of 

20 Federal Procurement Policy Act, as added by section 302, 

21 is amended—

22 (1) by redesignating subsection (b) as sub23 section (c); and 
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1 (2) by inserting after subsection (a) the fol2 lowing new subsection: 

3 ‘‘(b) INCENTIVE FOR USE OF PERFORMANCE-BASED

4 SERVICES CONTRACTS.—A performance-based contract 

5 for the procurement of services entered into by an execu6 tive agency or a performance-based task order for services 

7 issued by an executive agency may be treated as a contract 

8 for the procurement of commercial items if—

9 ‘‘(1) the contract or task order sets forth spe10 cifically each task to be performed and, for each 

11 task—

12 ‘‘(A) defines the task in measurable, mis13 sion-related terms; and 

14 ‘‘(B) identifies the specific end products or 

15 output to be achieved; and 

16 ‘‘(2) the source of the services provides similar 

17 services to the general public under terms and condi18 tions similar to those offered to the Federal Govern19 ment.’’. 

20 (c) CENTER OF EXCELLENCE IN SERVICE CON21 TRACTING.—Not later than 180 days after the date of the 

22 enactment of this Act, the Administrator for Federal Pro23 curement Policy shall establish a center of excellence in 

24 contracting for services. The center of excellence shall as25 sist the acquisition community by identifying, and serving 
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1 as a clearinghouse for, best practices in contracting for 

2 services in the public and private sectors. 

3 (d) REPEAL OF SUPERSEDED PROVISION.—Sub4 section (b) of section 821 of the Floyd D. Spence National 

5 Defense Authorization Act for Fiscal Year 2001 (as en6 acted into law by Public Law 106–398; 114 Stat. 1654A–

7 218) is repealed. 

8 SEC. 402. AUTHORIZATION OF ADDITIONAL COMMERCIAL 

9 CONTRACT TYPES. 

10 Section 8002(d) of the Federal Acquisition Stream11 lining Act of 1994 (Public Law 103–355; 108 Stat. 3387; 

12 41 U.S.C. 264 note) is amended—

13 (1) in paragraph (1), by striking ‘‘and’’; 

14 (2) by striking the period at the end of para15 graph (2) and inserting ‘‘; and’’; and 

16 (3) by adding at the end the following new 

17 paragraph: 

18 ‘‘(3) authority for use of a time and materials 

19 contract or a labor-hour contract for the procure20 ment of commercial services that are commonly sold 

21 to the general public through such contracts.’’

22 SEC. 403. CLARIFICATION OF COMMERCIAL SERVICES DEF23 INITION. 

24 Section 4(12) of the Office of Federal Procurement 

25 Policy Act (41 U.S.C. 403(12)) is amended—
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1 (1) in subparagraph (A), by striking ‘‘, other 

2 than real property,’’ and inserting ‘‘(other than real 

3 property) or service’’; 

4 (2) in subparagraph (C), by inserting ‘‘or serv5 ice’’ after ‘‘item’’; 

6 (3) in subparagraph (D), by striking ‘‘(C), or 

7 (E)’’ and inserting ‘‘or (C), or any combination of 

8 services meeting the requirements of subparagraphs 

9 (A) or (C),’’; 

10 (4) by striking subparagraphs (E) and (F); 

11 (5) by redesignating subparagraphs (G) and 

12 (H) as subparagraphs (E) and (F), respectively; and 

13 (6) in subparagraph (E), as so redesignated, by 

14 striking ‘‘through (F)’’ and inserting ‘‘through (D)’’.

15 SEC. 404. DESIGNATION OF COMMERCIAL BUSINESS ENTI16 TIES. 

17 (a) IN GENERAL.—Section 4 of the Office of Federal 

18 Procurement Policy Act (41 U.S.C. 403), as amended by 

19 section 403, is further amended—

20 (1) by adding at the end of paragraph (12) the 

21 following new subparagraph: 

22 ‘‘(G) Items or services produced or pro23 vided by a commercial entity.’’; and 

24 (2) by adding at the end the following new 

25 paragraph: 
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1 ‘‘(16) The term ‘commercial entity’ means any 

2 enterprise whose primary customers are other than 

3 the Federal Government. In order to qualify as a 

4 commercial entity, at least 90 percent (in dollars) of 

5 the sales of the enterprise over the past three busi6 ness years must have been made to private sector 

7 entities.’’. 

8 (b) COMPTROLLER GENERAL REVIEW.—The Comp9 troller General shall review the implementation of the 

10 amendments made by subsection (a) to evaluate the effec11 tiveness of such implementation in increasing the avail12 ability of items and services to the Federal Government 

13 at fair and reasonable prices.

14 TITLE V—OTHER MATTERS 

15 SEC. 501. AUTHORITY TO ENTER INTO CERTAIN PROCURE16 MENT-RELATED TRANSACTIONS AND TO 

17 CARRY OUT CERTAIN PROTOTYPE PROJECTS. 

18 Title III of the Federal Property and Administrative 

19 Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 

20 by adding at the end the following new section: 
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1 ‘‘SEC. 318. AUTHORITY TO ENTER INTO CERTAIN TRANS2 ACTIONS FOR DEFENSE AGAINST OR RECOV3 ERY FROM TERRORISM OR NUCLEAR, BIO4 LOGICAL, CHEMICAL, OR RADIOLOGICAL AT5 TACK. 

6 ‘‘(a) AUTHORITY.—

7 ‘‘(1) IN GENERAL.—The head of an executive 

8 agency who engages in basic research, applied re9 search, advanced research, and development projects 

10 that—

11 ‘‘(A) are necessary to the responsibilities of 

12 such official’s executive agency in the field of 

13 research and development, and 

14 ‘‘(B) have the potential to facilitate de15 fense against or recovery from terrorism or nu16 clear, biological, chemical, or radiological at17 tack, 

18 may exercise the same authority (subject to the 

19 same restrictions and conditions) with respect to 

20 such research and projects as the Secretary of De21 fense may exercise under section 2371 of title 10, 

22 United States Code, except for subsections (b) and 

23 (f) of such section 2371. 

24 ‘‘(2) PROTOTYPE PROJECTS.—The head of an 

25 executive agency may, under the authority of para26 graph (1), carry out prototype projects that meet the 
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1 requirements of subparagraphs (A) and (B) of para2 graph (1) in accordance with the requirements and 

3 conditions provided for carrying out prototype 

4 projects under section 845 of the National Defense 

5 Authorization Act for Fiscal Year 1994 (Public Law 

6 103–160; 10 U.S.C. 2371 note). In applying the re7 quirements and conditions of that section 845—

8 ‘‘(A) subsection (c) of that section shall 

9 apply with respect to prototype projects carried 

10 out under this paragraph; and 

11 ‘‘(B) the Director of the Office of Manage12 ment and Budget shall perform the functions of 

13 the Secretary of Defense under subsection (d) 

14 of that section. 

15 ‘‘(3) APPLICABILITY TO SELECTED EXECUTIVE

16 AGENCIES.—

17 ‘‘(A) OMB AUTHORIZATION REQUIRED.—

18 The head of an executive agency may exercise 

19 authority under this subsection only if author20 ized by the Director of the Office of Manage21 ment and Budget to do so. 

22 ‘‘(B) RELATIONSHIP TO AUTHORITY OF

23 DEPARTMENT OF HOMELAND SECURITY.—The 

24 authority under this subsection shall not apply 

25 to the Secretary of Homeland Security while 
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1 section 831 of the Homeland Security Act of 

2 2002 (Public Law 107-296; 116 Stat. 2224) is 

3 in effect. 

4 ‘‘(b) ANNUAL REPORT.—The annual report of the 

5 head of an executive agency that is required under sub6 section (h) of section 2371 of title 10, United States Code, 

7 as applied to the head of the executive agency by sub8 section (a), shall be submitted to the Committee on Gov9 ernmental Affairs of the Senate and the Committee on 

10 Government Reform of the House of Representatives. 

11 ‘‘(c) REGULATIONS.—The Director of the Office of 

12 Management and Budget shall prescribe regulations to 

13 carry out this section.’’. 

14 SEC. 502. AMENDMENTS RELATING TO FEDERAL EMER15 GENCY PROCUREMENT FLEXIBILITY. 

16 (a) REPEAL OF SUNSET FOR AUTHORITIES APPLICA17 BLE TO PROCUREMENTS FOR DEFENSE AGAINST OR RE18 COVERY FROM TERRORISM OR NUCLEAR, BIOLOGICAL, 

19 CHEMICAL, OR RADIOLOGICAL ATTACK.—Section 852 of 

20 the Homeland Security Act of 2002 (Public Law 107–296; 

21 116 Stat. 2235) is amended by striking ‘‘, but only if a 

22 solicitation of offers for the procurement is issued during 

23 the 1-year period beginning on the date of the enactment 

24 of this Act’’. 
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1 (b) APPLICABILITY OF INCREASED SIMPLIFIED AC2 QUISITION THRESHOLD.—(1) The matter preceding para3 graph (1) of section 853(a) of the Homeland Security Act 

4 of 2002 (Public Law 107–296; 116 Stat. 2235) is amend5 ed to read as follows: 

6 ‘‘(a) THRESHOLD AMOUNTS.—For a procurement re7 ferred to in section 852, the simplified acquisition thresh8 old referred to in section 4(11) of the Office of Federal 

9 Procurement Policy Act (41 U.S.C. 403(11)) is deemed 

10 to be—’’. 

11 (2) Subsections (b) and (c) of section 853 of such 

12 Act are repealed. 

13 (3) The heading of section 853 of such Act is amend14 ed to read as follows: 

15 ‘‘SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESH16 OLD FOR CERTAIN PROCUREMENTS.’’. 

17 (4) The table of contents in section 1(b) of such Act 

18 is amended by striking the item relating to section 853 

19 and inserting the following:

‘‘Sec. 853. Increased simplified acquisition threshold for certain procurements.’’.

20 (5) Section 18(c)(1) of the Office of Federal Procure21 ment Policy Act (41 U.S.C. 416(c)(1)) is amended—

22 (A) by striking ‘‘or’’ at the end of subpara23 graph (G); 

24 (B) by striking the period at the end of sub25 paragraph (H) and inserting ‘‘; or’’; and 
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1 (C) by adding at the end the following: 

2 ‘‘(I) the procurement is by the head of an 

3 executive agency pursuant to the special proce4 dures provided in section 853 of the Homeland 

5 Security Act of 2002 (Public Law 107–296).’’. 

6 (c) APPLICABILITY OF CERTAIN COMMERCIAL ITEMS

7 AUTHORITIES.—(1) Subsection (a) of section 855 of the 

8 Homeland Security Act of 2002 (Public Law 107–296; 

9 116 Stat. 2236) is amended to read as follows: 

10 ‘‘(a) AUTHORITY.— With respect to a procurement 

11 referred to in section 852, the head of an executive agency 

12 may deem any item or service to be a commercial item 

13 for the purpose of Federal procurement laws.’’. 

14 (2) Subsection (b)(1) of section 855 of such Act is 

15 amended by striking ‘‘to which any of the provisions of 

16 law referred to in subsection (a) are applied’’. 

17 (d) EXTENSION OF DEADLINE FOR REVIEW AND RE18 PORT.—Section 857(a) of the Homeland Security Act of 

19 2002 (Public Law 107–296; 116 Stat. 2237) is amended 

20 by striking ‘‘2004’’ and inserting ‘‘2006’’. 

21 SEC. 503. AUTHORITY TO MAKE INFLATION ADJUSTMENTS 

22 TO SIMPLIFIED ACQUISITION THRESHOLD. 

23 Section 4(11) of the Office of Federal Procurement 

24 Policy Act (41 U.S.C. 403(11)) is amended by inserting 

25 before the period at the end the following: ‘‘, except that 
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1 such amount may be adjusted by the Administrator every 

2 five years to the amount equal to $100,000 in constant 

3 fiscal year 2003 dollars (rounded to the nearest 

4 $10,000)’’. 

5 SEC. 504. TECHNICAL CORRECTIONS RELATED TO DUPLI6 CATIVE AMENDMENTS. 

7 (a) REPEAL OF SUPERSEDED SUBCHAPTER AND RE8 LATED CONFORMING AMENDMENTS.—(1) Subchapter II 

9 of chapter 35 of title 44, United States Code, is repealed. 

10 (2) Subchapter III of such chapter is redesignated 

11 as subchapter II. 

12 (3) Section 3549 of title 44, United States Code, is 

13 amended by striking the sentence beginning with ‘‘While 

14 this subchapter’’. 

15 (4) The table of sections at the beginning of chapter 

16 35 of title 44, United States Code, is amended—

17 (A) by striking the items relating to sections 

18 3531 through 3538; and 

19 (B) by striking the heading ‘‘SUBCHAPTER 

20 III’’. 

21 (5) Section 2224a of title 10, United States Code, 

22 is repealed, and the table of sections at the beginning of 

23 chapter 131 of such title is amended by striking the item 

24 relating to such section. 
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1 (b) CONFORMING AMENDMENTS RELATED TO RE2 PEALS OF SHARE-IN-SAVINGS AND SOLUTIONS-BASED

3 CONTRACTING PILOT PROGRAMS.—(1) Chapter 115 of 

4 title 40, United States Code, is repealed. 

5 (2) The table of chapters at the beginning of subtitle 

6 III of such title is amended by striking the item relating 

7 to chapter 115. 

8 (c) AMENDMENTS MADE BY E-GOVERNMENT ACT

9 MADE APPLICABLE.—The following provisions of law 

10 shall read as if the amendments made by title X of the 

11 Homeland Security Act of 2002 (Public Law 107–296) 

12 to such provisions did not take effect: 

13 (1) Section 2224 of title 10, United States 

14 Code. 

15 (2) Sections 20 and 21 of the National Insti16 tute of Standards and Technology Act (15 U.S.C. 

17 278g-3 and 278g-4). 

18 (3) Sections 11331 and 11332 of title 40, 

19 United States Code. 

20 (4) Subtitle G of title X of the Floyd D. Spence 

21 National Defense Authorization Act for Fiscal Year 

22 2001 (Public Law 106–398; 44 U.S.C. 3531 note). 

23 (5) Sections 3504(g), 3505, and 3506(g) of 

24 title 44, United States Code. 
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1 (d) CORRECTION OF CROSS REFERENCE.—Section 

2 2224(c) of title 10, United States Code, as amended by 

3 section 301(c)(1)(B)(iii) of the E-Government Act of 2002 

4 (Public Law 107–347; 116 Stat. 2955), is amended by 

5 striking ‘‘subchapter III’’ and inserting ‘‘subchapter II’’.

Æ