```

[Journal of the House of Representatives, 1995]
[Thursday, September 14, 1995 (115), Para 115.13 Roll No. 662]
[Pages 1343-1362]
[From the U.S. Government Publishing Office, www.gpo.gov]

para.115.13                  [Roll No. 662]

                                AYES--164

     Abercrombie
     Andrews
     Baesler
     Baldacci
     Ballenger
     Barcia
     Barrett (WI)
     Becerra
     Beilenson
     Bentsen
     Berman
     Bonior
     Borski
     Boucher
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Bryant (TX)
     Cardin
     Clement
     Coleman
     Collins (IL)
     Collins (MI)
     Condit
     Costello
     Coyne
     DeFazio
     Dellums
     Deutsch
     Dingell
     Dixon
     Doggett
     Doyle
     Duncan
     Durbin
     Ehrlich
     Ensign
     Eshoo
     Evans
     Farr
     Fattah
     Fawell
     Fazio
     Fields (LA)
     Filner
     Flake
     Foglietta
     Foley
     Ford
     Frank (MA)
     Furse
     Gibbons
     Green
     Gutierrez
     Hall (OH)
     Hastings (FL)
     Hefner
     Hinchey
     Jackson-Lee
     Jacobs
     Jefferson
     Johnson (SD)
     Johnson, E. B.
     Johnston
     Kanjorski
     Kaptur
     Kasich
     Kennedy (MA)
     Kennedy (RI)
     Kildee
     Kingston
     Kleczka
     Klug
     LaFalce
     Lantos
     Levin
     Lewis (GA)
     Lincoln
     LoBiondo
     Lofgren
     Lowey
     Luther
     Maloney
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy
     McDermott
     McKinney
     Meehan
     Menendez
     Mfume
     Miller (CA)
     Minge
     Mink
     Montgomery
     Nadler
     Neal
     Ney
     Oberstar
     Obey
     Olver
     Owens
     Pallone
     Payne (NJ)
     Payne (VA)
     Pelosi
     Peterson (MN)
     Petri
     Pomeroy
     Porter
     Portman
     Poshard
     Rahall
     Ramstad
     Rangel
     Reed
     Rivers
     Rose
     Roth
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sanford
     Sawyer
     Scarborough
     Schroeder
     Schumer
     Scott
     Sensenbrenner
     Serrano
     Shadegg
     Shays
     Skaggs
     Slaughter
     Spratt
     Stark
     Stenholm
     Stockman
     Stokes
     Studds
     Stupak
     Tanner
     Thurman
     Torres
     Torricelli
     Towns
     Traficant
     Vento
     Visclosky
     Volkmer
     Ward
     Waters
     Watt (NC)
     Waxman
     Whitfield
     Williams
     Wise
     Woolsey
     Wyden
     Yates
     Zimmer

                                NOES--259

     Ackerman
     Allard
     Archer
     Armey
     Bachus
     Baker (CA)
     Baker (LA)
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bono
     Brewster
     Browder
     Brownback
     Bryant (TN)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Castle
     Chabot
     Chambliss
     Chapman
     Chenoweth
     Christensen
     Chrysler
     Clay
     Clayton
     Clinger
     Clyburn
     Coble
     Coburn
     Collins (GA)
     Combest
     Cooley
     Cox
     Cramer
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     Deal
     DeLauro
     DeLay
     Diaz-Balart
     Dickey
     Dicks
     Dooley
     Doolittle
     Dornan
     Dreier
     Dunn
     Edwards
     Ehlers
     Emerson
     Engel
     English
     Everett
     Ewing
     Fields (TX)
     Flanagan
     Forbes
     Fowler
     Fox
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Funderburk
     Gallegly
     Ganske
     Gejdenson
     Gekas
     Gephardt
     Geren
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Greenwood
     Gunderson
     Gutknecht
     Hall (TX)
     Hamilton
     Hancock
     Hansen
     Harman
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Heineman
     Herger
     Hilleary
     Hilliard
     Hobson
     Hoekstra
     Hoke
     Holden
     Horn
     Hostettler
     Houghton
     Hoyer
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Johnson (CT)
     Johnson, Sam
     Jones
     Kelly
     Kennelly
     Kim
     King
     Klink
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     LaTourette
     Laughlin
     Lazio
     Leach
     Lewis (CA)
     Lewis (KY)
     Lightfoot
     Linder
     Lipinski
     Livingston
     Longley
     Lucas
     Manton
     Manzullo
     Martini
     McCollum
     McCrery
     McHale
     McHugh
     McInnis
     McIntosh
     McKeon
     McNulty
     Metcalf
     Meyers
     Mica
     Miller (FL)
     Molinari
     Mollohan
     Moorhead
     Moran
     Morella
     Murtha
     Myers
     Myrick
     Nethercutt
     Neumann
     Norwood
     Nussle
     Ortiz

[[Page 1344]]

     Orton
     Oxley
     Packard
     Parker
     Pastor
     Paxon
     Peterson (FL)
     Pickett
     Pombo
     Pryce
     Quillen
     Quinn
     Radanovich
     Regula
     Richardson
     Riggs
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Roukema
     Royce
     Salmon
     Saxton
     Schaefer
     Schiff
     Seastrand
     Shaw
     Shuster
     Skeen
     Skelton
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Souder
     Spence
     Stearns
     Stump
     Talent
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas
     Thompson
     Thornberry
     Thornton
     Tiahrt
     Torkildsen
     Upton
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Wicker
     Wilson
     Wolf
     Wynn
     Young (AK)
     Young (FL)
     Zeliff

                             NOT VOTING--11

     Conyers
     Frost
     McDade
     Meek
     Mineta
     Moakley
     Reynolds
     Sisisky
     Solomon
     Tucker
     Velazquez
  So the amendment was not agreed to.
  After some further time,
  The SPEAKER pro tempore, Mr. DIAZ-BALART, assumed the Chair.
  When Mr. WELLER, Chairman, pursuant to House Resolution 219, reported 
the bill back to the House with an amendment adopted by the Committee.
  The previous question having been ordered by said resolution.
  The following amendment, reported from the Committee of the Whole 
House on the state of the Union, was agreed to:

       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Acquisition Reform 
     Act of 1995''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                          TITLE I--COMPETITION

Sec. 101. Improvement of competition requirements.
Sec. 102. Definitions relating to competition requirements.
Sec. 103. Contract solicitation amendments.
Sec. 104. Preaward debriefings.
Sec. 105. Contract types.
Sec. 106. Contractor performance.
Sec. 107. Two-phase selection procedures.

                       TITLE II--COMMERCIAL ITEMS

Sec. 201. Commercial item exception to requirement for cost or pricing 
              data and information limitations.
Sec. 202. Application of simplified procedures to commercial items.
Sec. 203. Amendment to definition of commercial items.
Sec. 204. Inapplicability of cost accounting standards to contracts and 
              subcontracts for commercial items. 

                TITLE III--ADDITIONAL REFORM PROVISIONS

Sec. 301. Government reliance on the private sector.
Sec. 302. Elimination of certain certification requirements.
Sec. 303. Amendment to commencement and expiration of authority to 
              conduct certain tests of procurement procedures.
Sec. 304. International competitiveness.
Sec. 305. Procurement integrity.
Sec. 306. Further acquisition streamlining provisions.
Sec. 307. Justification of major defense acquisition programs not 
              meeting goals.
Sec. 308. Enhanced performance incentives for acquisition workforce.
Sec. 309. Results oriented acquisition program cycle.
Sec. 310. Rapid contracting goal.
Sec. 311. Encouragement of multiyear contracting.
Sec. 312. Contractor share of gains and losses from cost, schedule, and 
              performance experience.
Sec. 313. Phase funding of defense acquisition programs.
Sec. 314. Improved Department of Defense contract payment procedures.
Sec. 315. Consideration of past performance in assignment to 
              acquisition positions.
Sec. 316. Additional Department of Defense pilot programs.
Sec. 317. Value engineering for Federal agencies.
Sec. 318. Acquisition workforce.
Sec. 319. Demonstration project relating to certain personnel 
              management policies and procedures.
Sec. 320. Cooperative purchasing.

              TITLE IV--STREAMLINING OF DISPUTE RESOLUTION

                     Subtitle A--General Provisions

Sec. 401. Definitions.

 Subtitle B--Establishment of Civilian and Defense Boards of Contract 
                                Appeals

Sec. 411. Establishment.
Sec. 412. Membership.
Sec. 413. Chairman.
Sec. 414. Rulemaking authority.
Sec. 415. Authorization of appropriations.

   Subtitle C--Functions of Defense and Civilian Boards of Contract 
                                Appeals

Sec. 421. Alternative dispute resolution services.
Sec. 422. Alternative dispute resolution of disputes and protests 
              submitted to boards.
Sec. 423. Contract disputes.
Sec. 424. Protests.
Sec. 425. Applicability to certain contracts.

    Subtitle D--Repeal of Other Statutes Authorizing Administrative 
                                Protests

Sec. 431. Repeals.

    Subtitle E--Transfers and Transitional, Savings, and Conforming 
                               Provisions

Sec. 441. Transfer and allocation of appropriations and personnel.
Sec. 442. Terminations and savings provisions.
Sec. 443. Contract disputes authority of boards.
Sec. 444. References to agency boards of contract appeals.
Sec. 445. Conforming amendments.

  Subtitle F--Effective Date; Regulations and Appointment of Chairmen

Sec. 451. Effective date.
Sec. 452. Regulations.
Sec. 453. Appointment of chairmen of defense board and civilian board.

              TITLE V--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 501. Effective date and applicability.
Sec. 502. Implementing regulations.
                          TITLE I--COMPETITION

     SEC. 101. IMPROVEMENT OF COMPETITION REQUIREMENTS.

       (a) Armed Services Acquisitions.--(1) Section 2304 of title 
     10, United States Code, is amended to read as follows:

     ``Sec. 2304. Contracts: competition requirements

       ``(a) Competition.--(1) Except as provided in subsections 
     (b), (c), and (e) and except in the case of procurement 
     procedures otherwise expressly authorized by statute, the 
     head of an agency in conducting a procurement for property or 
     services--
       ``(A) shall obtain full and open competition--
       ``(i) that provides open access, and
       ``(ii) that is consistent with the need to efficiently 
     fulfill the Government's requirements,
     through the use of competitive procedures in accordance with 
     this chapter and the Federal Acquisition Regulation; and
       ``(B) shall use the competitive procedure or combination of 
     competitive procedures that is best suited under the 
     circumstances of the procurement.
       ``(2) In determining the competitive procedure appropriate 
     under the circumstances, the head of an agency--
       ``(A) shall 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; and
       ``(B) shall request competitive proposals if sealed bids 
     are not appropriate under clause (A).
       ``(b) Exclusion of Particular Source.--The head of an 
     agency may provide for the procurement of property or 
     services covered by this title using competitive procedures 
     but excluding a particular source in order to establish or 
     maintain an alternative source or sources of supply for that 
     property or service. The Federal Acquisition Regulation shall 
     set forth the circumstances under which a particular source 
     may be excluded pursuant to this subsection.
       ``(c) Exclusion of Concerns Other Than Small Business 
     Concerns and Certain Other Entities.--The head of an agency 
     may provide for the procurement of property or services 
     covered by this section using competitive procedures, but 
     excluding concerns other than small business concerns in 
     furtherance of sections 9 and 15 of the Small Business Act 
     (15 U.S.C. 638, 644) and concerns other than small business 
     concerns, historically Black colleges and universities, and 
     minority institutions in furtherance of section 2323 of this 
     title.
       ``(d) Procedures Other Than Competitive Procedures.--(1) 
     Procedures other than competitive procedures may be used for 
     purchasing property and services only when the use of 
     competitive procedures is not feasible or appropriate. 
     Standards for determining when the use of competitive 
     procedures is not feasible or appropriate shall be set forth 
     in the Federal Acquisition Regulation. Each procurement using 
     procedures other than competitive procedures (other than a 
     procurement for commercial items using simplified procedures 
     or a procurement in an amount not greater than the simplified 
     acquisition threshold) shall be justified in writing and 
     approved in accordance with the Federal Acquisition 
     Regulation.
       ``(2) In the case of a procurement using procedures that 
     preclude all but one source from responding (hereinafter in 
     this subsection referred to as a `sole source procurement'), 
     the Federal Acquisition Regulation shall provide for 
     justification and approval under paragraph (1) of such 
     procurement under standards that set forth limited 
     circumstances for such sole source procurements, including 
     circumstances when--
       ``(A) the property or services needed by the agency are 
     available from only one respon

[[Page 1345]]

     sible source and no other type of property or services will 
     satisfy the needs of the agency;
       ``(B) the agency's need for the property or services is of 
     such an unusual and compelling urgency that the United States 
     would be seriously injured unless the agency is permitted to 
     award the contract for the property or services to a 
     particular source;
       ``(C) it is necessary to award the contract to a particular 
     source in order (i) 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, (ii) 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, or (iii) to procure the services of an 
     expert for use, in any litigation or dispute (including any 
     reasonably foreseeable litigation or dispute) involving the 
     Federal Government, in any trial, hearing, or proceeding 
     before any court, administrative tribunal, or agency, or in 
     any part of an alternative dispute resolution process, 
     whether or not the expert is expected to testify;
       ``(D) the terms of an international agreement or a treaty 
     between the United States and a foreign government or 
     international organization, or the written directions of a 
     foreign government reimbursing the agency for the cost of the 
     procurement of the property or services for such government, 
     have the effect of requiring the award of the contract for 
     the property or services to a particular source;
       ``(E) subject to section 2304f, a statute expressly 
     authorizes or requires that the procurement be made through 
     another agency or from a specified source, or the agency's 
     need is for a brand-name commercial item for authorized 
     resale;
       ``(F) the disclosure of the agency's needs would compromise 
     the national security unless the agency is permitted to award 
     the contract for the property or services needed by the 
     agency to a particular source; or
       ``(G) the head of the agency--
       ``(i) determines that it is necessary in the public 
     interest to award the contract for the property or services 
     needed by the agency to a particular source in the particular 
     procurement concerned, and
       ``(ii) notifies the Congress in writing of such 
     determination not less than 30 days before the award of the 
     contract.
       ``(3) The authority of the head of an agency under 
     paragraph (2)(G) may not be delegated.
       ``(e) Simplified Procedures.--(1) In order to promote 
     efficiency and economy in contracting and to avoid 
     unnecessary burdens for agencies and contractors, the Federal 
     Acquisition Regulation shall provide for special simplified 
     procedures for purchases of property and services for amounts 
     not greater than the simplified acquisition threshold.
       ``(2) 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 in order to 
     use the simplified procedures required by paragraph (1).
       ``(3) In using simplified procedures, the head of an agency 
     shall ensure that competition is obtained to the maximum 
     extent practicable consistent with the particular Government 
     requirement.
       ``(f) Certain Contracts.--For the purposes of the following 
     laws, purchases or contracts awarded after using procedures 
     other than sealed-bid procedures shall be treated as if they 
     were made with sealed-bid procedures:
       ``(1) The Walsh-Healey Act (41 U.S.C. 35-45).
       ``(2) The Act entitled `An Act relating to the rate of 
     wages for laborers and mechanics employed on public buildings 
     of the United States and the District of Columbia by 
     contractors and subcontractors, and for other purposes', 
     approved March 3, 1931 (commonly referred to as the `Davis-
     Bacon Act') (40 U.S.C. 276a--276a-5).''.
       (2) Chapter 137 of title 10, United States Code, is amended 
     by inserting before section 2305 a new section--
       (A) the designation and heading for which is as follows:

     ``Sec. 2304f. Merit-based selection'';

     and
       (B) the text of which consists of subsection (j) of section 
     2304 of such title, as in effect on the day before the date 
     of the enactment of this Act, modified--
       (i) by striking out the subsection designation;
       (ii) in paragraphs (2)(A), (3), and (4), by striking out 
     ``subsection'' and inserting in lieu thereof ``section'' each 
     place it appears;
       (iii) in paragraph (2)(C), by striking out ``paragraph 
     (1)'' and inserting in lieu thereof ``subsection (a)'';
       (iv) by redesignating paragraphs (1), (2), (3), and (4) as 
     subsections (a), (b), (c), and (d), respectively; and
       (v) in subsection (b) (as so redesignated), by 
     redesignating subparagraphs (A), (B), and (C) as paragraphs 
     (1), (2), and (3), respectively.
       (3) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating section 2305 
     the following new item:

``2304 f. Merit-based selection.''.
       (b) Civilian Agency Acquisitions.--(1) Section 303 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253) is amended to read as follows:

     ``SEC. 303. CONTRACTS: COMPETITION REQUIREMENTS.

       ``(a) Competition.--(1) Except as provided in subsections 
     (b), (c), and (e) and except in the case of procurement 
     procedures otherwise expressly authorized by statute, an 
     executive agency in conducting a procurement for property or 
     services--
       ``(A) shall obtain full and open competition--
       ``(i) that provides open access, and
       ``(ii) that is consistent with the need to efficiently 
     fulfill the Government's requirements,
     through the use of competitive procedures in accordance with 
     this title and the Federal Acquisition Regulation; and
       ``(B) shall use the competitive procedure or combination of 
     competitive procedures that is best suited under the 
     circumstances of the procurement.
       ``(2) In determining the competitive procedure appropriate 
     under the circumstances, an executive agency--
       ``(A) shall 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; and
       ``(B) shall request competitive proposals if sealed bids 
     are not appropriate under clause (A).
       ``(b) Exclusion of Particular Source.--An executive agency 
     may provide for the procurement of property or services 
     covered by this title using competitive procedures but 
     excluding a particular source in order to establish or 
     maintain an alternative source or sources of supply for that 
     property or service. The Federal Acquisition Regulation shall 
     set forth the circumstances under which a particular source 
     may be excluded pursuant to this subsection.
       ``(c) Exclusion of Concerns Other Than Small Business 
     Concerns and Certain Other Entities.--An executive agency may 
     provide for the procurement of property or services covered 
     by this section using competitive procedures, but excluding 
     concerns other than small business concerns in furtherance of 
     sections 9 and 15 of the Small Business Act (15 U.S.C. 638, 
     644) and concerns other than small business concerns, 
     historically Black colleges and universities, and minority 
     institutions in furtherance of section 7102 of the Federal 
     Acquisition Streamlining Act of 1994 (15 U.S.C. 644 note).
       ``(d) Procedures Other Than Competitive Procedures.--(1) 
     Procedures other than competitive procedures may be used for 
     purchasing property and services only when the use of 
     competitive procedures is not feasible or appropriate. 
     Standards for determining when the use of competitive 
     procedures is not feasible or appropriate shall be set forth 
     in the Federal Acquisition Regulation. Each procurement using 
     procedures other than competitive procedures (other than a 
     procurement for commercial items using simplified procedures 
     or a procurement in an amount not greater than the simplified 
     acquisition threshold) shall be justified in writing and 
     approved in accordance with the Federal Acquisition 
     Regulation.
       ``(2) In the case of a procurement using procedures that 
     preclude all but one source from responding (hereinafter in 
     this subsection referred to as a `sole source procurement'), 
     the Federal Acquisition Regulation shall provide for 
     justification and approval under paragraph (1) of such 
     procurement under standards that set forth limited 
     circumstances for such sole source procurements, including 
     circumstances when--
       ``(A) 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;
       ``(B) the executive agency's need for the property or 
     services is of such an unusual and compelling urgency that 
     the United States would be seriously injured unless the 
     executive agency is permitted to award the contract for the 
     property or services to a particular source;
       ``(C) it is necessary to award the contract to a particular 
     source in order (i) 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, (ii) 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, or (iii) to procure the services of an 
     expert for use, in any litigation or dispute (including any 
     reasonably foreseeable litigation or dispute) involving the 
     Federal Government, in any trial, hearing, or proceeding 
     before any court, administrative tribunal, or agency, or in 
     any part of an alternative dispute resolution process, 
     whether or not the expert is expected to testify;
       ``(D) the terms of an international agreement or treaty 
     between the United States Government and a foreign government 
     or 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 such 
     government, have the effect of requiring the award of the 
     contract for the property or services to a particular source;
       ``(E) subject to section 303M, 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;

[[Page 1346]]

       ``(F) the disclosure of the executive agency's needs would 
     compromise the national security unless the agency is 
     permitted to award the contract for the property or services 
     needed by the agency to a particular source; or
       ``(G) the head of the executive agency--
       ``(i) determines that it is necessary in the public 
     interest to award the contract for the property or services 
     needed by the agency to a particular source in the particular 
     procurement concerned, and
       ``(ii) notifies the Congress in writing of such 
     determination not less than 30 days before the award of the 
     contract.
       ``(3) The authority of the head of an executive agency 
     under paragraph (2)(G) may not be delegated.
       ``(e) Simplified Procedures.--(1) In order to promote 
     efficiency and economy in contracting and to avoid 
     unnecessary burdens for agencies and contractors, the Federal 
     Acquisition Regulation shall provide for special simplified 
     procedures for purchases of property and services for amounts 
     not greater than the simplified acquisition threshold.
       ``(2)(A) 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.
       ``(B) For purposes of subparagraph (A), the rental rate or 
     rates under a multiyear lease do not exceed the simplified 
     acquisition threshold if the average annual amount of the 
     rent payable for the period of the lease does not exceed the 
     simplified acquisition threshold.
       ``(3) A proposed purchase or contract or for an amount 
     above the simplified acquisition threshold may not be divided 
     into several purchases or contracts for lesser amounts in 
     order to use the simplified procedures required by paragraph 
     (1).
       ``(4) In using simplified procedures, an executive agency 
     shall ensure that competition is obtained to the maximum 
     extent practicable consistent with the particular Government 
     requirement.''.
       (2) Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.) is amended by 
     inserting after section 303L a new section--
       (A) the designation and heading for which is as follows:

     ``SEC. 303M. MERIT-BASED SELECTION.'';

     and
       (B) the text of which consists of subsection (h) of section 
     303 of such Act, as in effect on the day before the date of 
     the enactment of this Act, modified--
       (i) by striking out the subsection designation;
       (ii) in paragraphs (2)(A), (3), and (4), by striking out 
     ``subsection'' and inserting in lieu thereof ``section'' each 
     place it appears;
       (iii) in paragraph (2)(C), by striking out ``paragraph 
     (1)'' and inserting in lieu thereof ``subsection (a)'';
       (iv) by redesignating paragraphs (1), (2), (3), and (4) as 
     subsections (a), (b), (c), and (d), respectively; and
       (v) in subsection (b) (as so redesignated), by 
     redesignating subparagraphs (A), (B), and (C) as paragraphs 
     (1), (2), and (3), respectively.
       (3) The table of contents for the Federal Property and 
     Administrative Services Act of 1949 (contained in section 
     1(b)) is amended--
       (A) by striking out the item relating to section 303 and 
     inserting in lieu thereof the following:

``Sec. 303. Contracts: competition requirements.'';
     and
       (B) by inserting after the item relating to section 303L 
     the following new item:

``Sec. 303M. Merit-based selection.''.
       (c) Revisions to Procurement Notice Provisions.--Section 18 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     416) is amended--
       (1) in subsection (a)--
       (A) in subparagraph (B) of paragraph (1)--
       (i) by striking out ``subsection (f)--'' and all that 
     follows through the end of the subparagraph and inserting in 
     lieu thereof ``subsection (b); and''; and
       (ii) by inserting after ``property or services'' the 
     following: ``for a price expected to exceed $10,000 but not 
     to exceed $25,000'';
       (B) by striking out paragraph (4); and
       (C) by redesignating paragraphs (5) and (6) as paragraphs 
     (4) and (5), respectively; and
       (2) in subsection (b)--
       (A) by amending subparagraph (B) of paragraph (2) to read 
     as follows:
       ``(B) state whether the acquisition is to be conducted 
     pursuant to a contractor verification system (as provided 
     pursuant to section 35) or whether the offeror, its product, 
     or its service otherwise must meet a qualification 
     requirement in order to be eligible for award and, if so, 
     identify the criteria to be used in determining such 
     eligibility;''; and
       (B) by amending paragraph (4) to read as follows:
       ``(4) a statement that all responsible sources may submit 
     for consideration a bid, proposal, or quotation;''.
       (d) Executive Agency Responsibilities.--(1) Section 16 of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 414) 
     is amended--
       (A) by striking out ``achieve'' in the matter preceding 
     paragraph (1) and inserting in lieu thereof ``promote''; and
       (B) by amending paragraph (1) to read as follows:
       ``(1) to implement competition that provides open access 
     for responsible sources in the procurement of property or 
     services by the executive agency by establishing policies, 
     procedures, and practices that are consistent with the need 
     to efficiently fulfill the Government's requirements;''.
       (2) Section 20 of such Act (41 U.S.C. 418) is amended in 
     subsection (a)(2)(A) by striking out ``serving in a position 
     authorized for such executive agency on the date of enactment 
     of the Competition in Contracting Act of 1984''.

     SEC. 102. DEFINITIONS RELATING TO COMPETITION REQUIREMENTS.

       (a) Definition.--Paragraphs (5) and (6) of section 4 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 403) are 
     amended to read as follows:
       ``(5) The term `competitive procedures' means procedures 
     under which an agency enters into a contract pursuant to full 
     and open competition that provides open access and is 
     consistent with the need to efficiently fulfill the 
     Government's requirements.
       ``(6) The term `open access', when used with respect to a 
     procurement, means that all responsible sources are permitted 
     to submit sealed bids or competitive proposals on the 
     procurement.''.
       (b) Conforming Amendments.--
       (1) Office of federal procurement policy act.--Section 20 
     of the Office of Federal Procurement Policy Act is amended--
       (A) in subsection (b)(1), subsection (b)(3)(A), and 
     subsection (c), by inserting after ``full and open 
     competition'' the following: ``that provides open access and 
     is consistent with the need to efficiently fulfill the 
     Government's requirements'' each place it appears; and
       (B) in subsection (b)(4)(C), by striking out ``to full and 
     open competition that remain'' and inserting in lieu thereof 
     ``that remain to achieving full and open competition that 
     provides open access and is consistent with the need to 
     efficiently fulfill the Government's requirements''.
       (2) Title 10.--Title 10, United States Code, is amended--
       (A) in section 2302(2), by striking out the first sentence 
     and inserting in lieu thereof the following: ``The term 
     `competitive procedures' means procedures under which an 
     agency enters into a contract pursuant to full and open 
     competition that provides open access and is consistent with 
     the need to efficiently fulfill the Government's 
     requirements.'';
       (B) in section 2302(3)(D), by striking out ``full and open 
     competition'' and inserting in lieu thereof ``open access'';
       (C) in section 2323(e)(3), by striking out ``less than full 
     and open'' and inserting in lieu thereof ``procedures other 
     than''; and
       (D) in section 2323(i)(3)(A), by striking out ``full and 
     open''.
       (3) Federal property and administrative services act.--
     Title III of the Federal Property and Administrative Services 
     Act of 1949 (41 U.S.C. 251 et seq.) is amended--
       (A) in section 309(b), by striking out the first sentence 
     and inserting in lieu thereof the following: ``The term 
     `competitive procedures' means procedures under which an 
     executive agency enters into a contract pursuant to full and 
     open competition that provides open access and is consistent 
     with the need to efficiently fulfill the Government's 
     requirements.'';
       (B) in section 309(c)(4), by striking out ``full and open 
     competition'' and inserting in lieu thereof ``open access''; 
     and
       (C) in section 304B(a)(2)(B), by striking out ``encouraging 
     full and open competition or''.
       (4) Other laws.--Section 7102 of the Federal Acquisition 
     Streamlining Act of 1994 (108 Stat. 3367; 15 U.S.C. 644 note) 
     is amended in subsection (a)(1)(A) by striking out ``less 
     than full and open competition'' and inserting in lieu 
     thereof ``procedures other than competitive procedures''.

     SEC. 103. CONTRACT SOLICITATION AMENDMENTS.

       (a) Armed Services Acquisitions.--Section 2305 of title 10, 
     United States Code, is amended--
       (1) in subsection (a)(1)--
       (A) by striking out subparagraph (A) and inserting in lieu 
     thereof the following: ``(A) In preparing for the procurement 
     of property or services, the head of an agency shall use 
     advance procurement planning and market research.'';
       (B) by striking out subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B) 
     and in that subparagraph by striking out ``For the purposes 
     of subparagraphs (A) and (B), the'' and inserting in lieu 
     thereof ``Each solicitation under this chapter shall include 
     specifications that include restrictive provisions or 
     conditions only to the extent necessary to satisfy the needs 
     of the agency or as authorized by law. The'';
       (2) in subsection (a)(2), by inserting after ``(other than 
     for'' the following: ``a procurement for commercial items 
     using simplified procedures or''; and
       (3) in subsection (b)(4)(A)(i), by striking out ``all'' and 
     inserting in lieu thereof ``the''.
       (b) Civilian Agency Acquisitions.--(1) Section 303A of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253a) is amended--
       (A) in subsection (a)--
       (i) by striking out paragraph (1) and inserting in lieu 
     thereof the following: ``(1) In preparing for the procurement 
     of property or services, an executive agency shall use 
     advance procurement planning and market research.'';

[[Page 1347]]

       (ii) by striking out paragraph (2); and
       (iii) by redesignating paragraph (3) as paragraph (2) and 
     in that paragraph by striking out ``For the purposes of 
     paragraphs (1) and (2), the'' and inserting in lieu there of 
     ``Each solicitation under this title shall include 
     specifications that include restrictive provisions or 
     conditions only to the extent necessary to satisfy the needs 
     of the executive agency or as authorized by law. The''; and
       (B) in subsection (b), by inserting after ``(other than 
     for'' the following: ``a procurement for commercial items 
     using simplified procedures or''.
       (2) Section 303B(d)(1)(A) of such Act (41 U.S.C. 253b) is 
     amended by striking out ``all'' and inserting in lieu thereof 
     ``the''.

     SEC. 104. PREAWARD DEBRIEFINGS.

       (a) Armed Services Acquisitions.--Section 2305(b) of title 
     10, United States Code, is amended--
       (1) by striking out subparagraph (F) of paragraph (5);
       (2) by redesignating paragraph (6) as paragraph (8); and
       (3) by inserting after paragraph (5) the following new 
     paragraphs:
       ``(6)(A) When the contracting officer excludes an offeror 
     submitting a competitive proposal from the competitive range 
     (or otherwise excludes such an offeror from further 
     consideration prior to the final source selection decision), 
     the excluded offeror may request in writing, within three 
     days after the date on which the excluded offeror receives 
     notice of its exclusion, a debriefing prior to award. 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 Government to conduct a debriefing at that 
     time.
       ``(B) The contracting officer is required to debrief an 
     excluded offeror in accordance with paragraph (5) of this 
     section only if that offeror requested and was refused a 
     preaward debriefing under subparagraph (A) of this paragraph.
       ``(C) The debriefing conducted under this subsection shall 
     include--
       ``(i) the executive agency's evaluation of the significant 
     elements in the offeror's offer;
       ``(ii) a summary of the rationale for the offeror's 
     exclusion; and
       ``(iii) 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) The debriefing conducted pursuant to this subsection 
     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.
       ``(7) The contracting officer shall include a summary of 
     any debriefing conducted under paragraph (5) or (6) in the 
     contract file.''.
       (b) Civilian Agency Acquisitions.--Section 303B of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253b) is amended--
       (1) by striking out paragraph (6) of subsection (e);
       (2) by redesignating subsections (f), (g), (h), and (i) as 
     subsections (h), (i), (j), and (k), respectively; and
       (3) by inserting after subsection (e) the following new 
     subsections:
       ``(f)(1) When the contracting officer excludes an offeror 
     submitting a competitive proposal from the competitive range 
     (or otherwise excludes such an 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. 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 Government to conduct a debriefing at that 
     time.
       ``(2) The contracting officer is required to debrief an 
     excluded offeror in accordance with subsection (e) of this 
     section only if that offeror requested and was refused a 
     preaward debriefing under paragraph (1) of this subsection.
       ``(3) The debriefing conducted under this subsection shall 
     include--
       ``(A) the executive agency's evaluation of the significant 
     elements in the offeror's offer;
       ``(B) a summary of the rationale for the offeror's 
     exclusion; and
       ``(C) 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.
       ``(4) The debriefing conducted pursuant to this subsection 
     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.
       ``(g) The contracting officer shall include a summary of 
     any debriefing conducted under subsection (e) or (f) in the 
     contract file.''.

     SEC. 105. CONTRACT TYPES.

       (a) Armed Services Acquisitions.--(1) Section 2306 of title 
     10, United States Code, is amended--
       (A) by inserting before the period at the end of subsection 
     (a) the following: ``, based on market conditions, 
     established commercial practice (if any) for the product or 
     service being acquired, and sound business judgment'';
       (B) by striking out subsections (b), (d), (e), (f), and 
     (h); and
       (C) by redesignating subsection (g) as subsection (b).
       (2) The heading of such section is amended to read as 
     follows:

     ``Sec. 2306. Contract types''.

       (3) The item relating to section 2306 in the table of 
     sections at the beginning of chapter 137 of such title is 
     amended to read as follows:

``2306. Contract types.''.
       (b) Civilian Agency Acquisitions.--(1) Section 304 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 254) is amended--
       (A) by inserting before the period at the end of the first 
     sentence of subsection (a) the following: ``, based on market 
     conditions, established commercial practice (if any) for the 
     product or service being acquired, and sound business 
     judgment'';
       (B) by striking out ``Every contract awarded'' in the 
     second sentence of subsection (a) and all that follows 
     through the end of the subsection; and
       (C) in subsection (b), by striking out ``used,'' in the 
     first sentence and all that follows through the end of the 
     subsection and inserting in lieu thereof ``used.''.
       (2) The heading of such section is amended to read as 
     follows:

     ``SEC. 304. CONTRACT TYPES.''.

       (3) The item relating to section 304 in the table of 
     contents for such Act (contained in section 1(b)) is amended 
     to read as follows:

``Sec. 304. Contract types.''.
       (c) Conforming Repeals.--(1) Sections 4540, 7212, and 9540 
     of title 10, United States Code, are repealed.
       (2) The table of sections at the beginning of chapter 433 
     of such title is amended by striking out the item relating to 
     section 4540.
       (3) The table of sections at the beginning of chapter 631 
     of such title is amended by striking out the item relating to 
     section 7212.
       (4) The table of sections at the beginning of chapter 933 
     of such title is amended by striking out the item relating to 
     section 9540.
       (d) Civil Works Authority.--(1) Part IV of subtitle A of 
     title 10, United States Code, is amended--
       (A) by transferring section 2855 to the end of chapter 137; 
     and
       (B) by striking out the section heading and subsection (a) 
     of such section and inserting in lieu thereof the following:

     ``Sec. 2332. Contracts for architectural and engineering 
       services

       ``(a) The Secretary of Defense and the Secretaries of the 
     military departments may enter into contracts for 
     architectural and engineering services in connection with a 
     military construction or family housing project or for other 
     Department of Defense or military department purposes. Such 
     contracts shall be awarded in accordance with the Brooks 
     Architect-Engineers Act (40 U.S.C. 541 et seq.).''.
       (2) The table of sections at the beginning of chapter 137 
     of such title is amended by adding at the end the following 
     new item:

``2332. Contracts for architectural and engineering services.''.
       (3) The table of sections at the beginning of chapter 169 
     of such title is amended by striking out the item relating to 
     section 2855.

     SEC. 106. CONTRACTOR PERFORMANCE.

       (a) Requirement for System.--The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 35. CONTRACTOR PERFORMANCE.

       ``(a) Verification System.--
       ``(1) Requirement.--The Federal Acquisition Regulation 
     shall provide for a contractor verification system in 
     accordance with this section.
       ``(2) Procedures.--The Federal Acquisition Regulation shall 
     provide procedures for the head of an executive agency to 
     follow in order to verify a contractor as eligible to compete 
     for contracts to furnish property or services that are 
     procured by the executive agency on a recurring basis.
       ``(3) Notification.--The procedures shall include a 
     requirement that the head of an executive agency provide for 
     the publication of appropriate notification about the 
     verification system in the Commerce Business Daily.
       ``(b) Evaluation.--(1) Under the procedures referred to in 
     subsection (a)(2), the head of an executive agency in 
     granting a verification to a contractor shall use the 
     following factors as the basis of the evaluation:
       ``(A) The efficiency and effectiveness of its business 
     practices.
       ``(B) The level of quality of its product or service.
       ``(C) Past performance of the contractor with regard to the 
     particular property or service.
       ``(2)(A) The evaluation of past performance may include 
     performance under--
       ``(i) a contract with an executive agency of the Federal 
     Government;
       ``(ii) a contract with an agency of a State or local 
     government; or
       ``(iii) a contract with an entity in the private sector.
       ``(B) The procedures shall include a requirement that, in 
     the case of a contractor with respect to which there is no 
     information on past contract performance or with respect to 
     which information on past con

[[Page 1348]]

     tract performance is not available, the contractor may not be 
     evaluated favorably or unfavorably on the factor of past 
     performance.
       ``(c) Opportunity for All Interested Sources.--The Federal 
     Acquisition Regulation shall provide procedures for ensuring 
     that all interested sources, including small businesses, have 
     a fair opportunity to be considered for verification under 
     the verification system.
       ``(d) Procurement From Verified Contractors.--The Federal 
     Acquisition Regulation shall provide procedures under which 
     the head of an executive agency may enter into a contract for 
     the procurement of property or services referred to in 
     subsection (a)(2) on the basis of a competition in accordance 
     with section 2304 of title 10, United States Code, or section 
     303 of the Federal Property and Administrative Services Act 
     of 1949 (41 U.S.C. 253) for contractors verified with respect 
     to such property or services pursuant to the contractor 
     verification system.
       ``(e) Termination of Verification.--The Federal Acquisition 
     Regulation shall provide procedures under which the head of 
     an executive agency--
       ``(1) may provide for the termination of a verification 
     granted a contractor under this section upon the expiration 
     of a period specified by the head of an executive agency;
       ``(2) may revoke a verification granted a contractor under 
     this section upon a determination that the quality of 
     performance of the contractor does not meet standards applied 
     by the head of the executive agency as of the time of the 
     revocation decision; and
       ``(3) may provide that a contractor whose verification is 
     terminated or revoked will have a fair opportunity to be 
     considered for reentry into the verification system.
       ``(f) Special Applicability Rule.--Notwithstanding section 
     34, the verification system shall apply to the procurement of 
     commercial items.''.
       (b) Repeals.--Section 2319 of title 10, United States Code, 
     is repealed. Section 303C of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253c) is 
     repealed.
       (c) Clerical Amendments.--(1) The table of contents for the 
     Office of Federal Procurement Policy Act (contained in 
     section 1(b)) is amended by adding at the end the following 
     new item:

``Sec. 35. Contractor performance.''.
       (2) The table of sections at the beginning of chapter 137 
     of title 10, United States Code, is amended by striking out 
     the item relating to section 2319.
       (3) The table of contents for the Federal Property and 
     Administrative Services Act of 1949 (contained in section 
     1(b)) is amended by striking out the item relating to section 
     303C.

     SEC. 107. TWO-PHASE SELECTION PROCEDURES.

       (a) Armed Services Acquisitions.--(1) Chapter 137 of title 
     10, United States Code, is amended by inserting after section 
     2305 the following new section:

     ``Sec. 2305a. Two-phase selection procedures

       ``(a) Authorization.--Unless the traditional acquisition 
     approach of design-bid-build is used or another acquisition 
     procedure authorized by law is used, the head of an 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 the contracting officer anticipates that three or 
     more offers will be received for such contract, design work 
     must be performed before an offeror can develop a price or 
     cost proposal for such contract, the offeror will incur a 
     substantial amount of expense in preparing the offer, and the 
     contracting officer has considered information such as the 
     following:
       ``(1) The extent to which the project requirements have 
     been adequately defined.
       ``(2) The time constraints for delivery of the project.
       ``(3) The capability and experience of potential 
     contractors.
       ``(4) The suitability of the project for use of the two-
     phase selection procedures.
       ``(5) The capability of the agency to manage the two-phase 
     selection process.
       ``(6) Other criteria established by the agency.
       ``(c) Procedures Described.--Two-phase selection procedures 
     consist of the following:
       ``(1) 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 Government's 
     requirements (which may include criteria and preliminary 
     design, budget parameters, and schedule or delivery 
     requirements) to enable the offerors to submit proposals 
     which meet the Government's needs. When the two-phase 
     selection procedure is used for design and construction of a 
     public building, facility, or work and the agency contracts 
     for development of the scope of work statement, the agency 
     shall contract for architectural/engineering services as 
     defined by and in accordance with the Brooks Architect-
     Engineers Act (40 U.S.C. 541 et seq.).
       ``(2) 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) 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 if the project is for the construction of a public 
     building, facility, or work) 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) 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--
       ``(A) the technical submission for the proposal, including 
     design concepts or proposed solutions to requirements 
     addressed within the scope of work (or both), and
       ``(B) the evaluation factors and subfactors, including cost 
     or price, that must be considered in the evaluations of 
     proposals in accordance with section 2305(b)(4) of this 
     title.
     The contracting officer separately evaluates the submissions 
     described in subparagraphs (A) and (B).
       ``(5) The agency awards the contract in accordance with 
     section 2305(b)(4) 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 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 Regulatory Council, established by 
     section 25(a) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421(a)), shall provide guidance and promulgate 
     regulations--
       ``(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.''.
       (2) The table of sections at the beginning of chapter 137 
     of such title is amended by adding after the item relating to 
     section 2305 the following new item:

``2305a. Two-phase selection procedures.''.
       (b) Civilian Agency Acquisitions.--(1) Title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.) is amended by inserting after section 
     303L the following new section:
       ``(a) Authorization.--Unless the `traditional' acquisition 
     approach of design-bid-build is used 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. The two-phase 
     selection procedures authorized in this section may also be 
     used for entering into a contract for the acquisition of 
     property or services other than construction services when 
     such a determination is made.
       ``(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 the contracting officer anticipates that three or 
     more offers will be received for such contract, design work 
     must be performed before an offeror can develop a price or 
     cost proposal for such contract, the offeror will incur a 
     substantial amount of expense in preparing the offer, and the 
     contracting officer has considered information such as the 
     following:
       ``(1) The extent to which the project requirements have 
     been adequately defined.
       ``(2) The time constraints for delivery of the project.
       ``(3) The capability and experience of potential 
     contractors.
       ``(4) The suitability of the project for use of the two-
     phase selection procedures.
       ``(5) The capability of the agency to manage the two-phase 
     selection process.
       ``(6) Other criteria established by the agency.

[[Page 1349]]

       ``(c) Procedures Described.--Two-phase selection procedures 
     consist of the following:
       ``(1) 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 Government's 
     requirements (which may include criteria and preliminary 
     design, budget parameters, and schedule or delivery 
     requirements) to enable the offerors to submit proposals 
     which meet the Government's needs. When the two-phase 
     selection procedure is used for design and construction of a 
     public building, facility, or work and the agency contracts 
     for development of the scope of work statement, the agency 
     shall contract for architectural/engineering services as 
     defined by and in accordance with the Brooks Architect-
     Engineers Act (40 U.S.C. 541 et seq.).
       ``(2) 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) 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 if the project is for the construction of a public 
     building, facility, or work) 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) 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--
       ``(A) the technical submission for the proposal, including 
     design concepts or proposed solutions to requirements 
     addressed within the scope of work (or both), and
       ``(B) the evaluation factors and subfactors, including cost 
     or price, that must be considered in the evaluations of 
     proposals in accordance with section 303B(d).
     The contracting officer separately evaluates the submissions 
     described in subparagraphs (A) and (B).
       ``(5) The agency awards the contract in accordance with 
     section 303B 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 precedures 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 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 Regulatory Council, established by 
     section 25(a) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421(a)), shall provide guidance and promulgate 
     regulations--
       ``(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.''.
       (2) The table of sections at the beginning of such Act is 
     amended by inserting after the item relating to section 303L 
     the following new item:

``Sec. 303M. Two-phase selection procedures.''.
                       TITLE II--COMMERCIAL ITEMS

     SEC. 201. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR COST 
                   OR PRICING DATA AND INFORMATION LIMITATIONS.

       (a) Armed Services Acquisitions.--(1) Subsections (b), (c), 
     and (d) of section 2306a of title 10, United States Code, are 
     amended to read as follows:
       ``(b) Exceptions.--
       ``(1) In general.--Submission of cost or pricing data shall 
     not be required under subsection (a) in the case of a 
     contract, a subcontract, or modification of a contract or 
     subcontract--
       ``(A) for which the price agreed upon is based on--
       ``(i) adequate price competition; or
       ``(ii) prices set by law or regulation;
       ``(B) for the acquisition of a commercial item; or
       ``(C) in an exceptional case when the head of the procuring 
     activity, without delegation, determines that the 
     requirements of this section may be waived and justifies in 
     writing the reasons for such determination.
       ``(2) Modifications of contracts and subcontracts for 
     commercial items.--In the case of a modification of a 
     contract or subcontract for a commercial item that is not 
     covered by the exception on the submission of cost or pricing 
     data in paragraph (1)(A) or (1)(B), submission of cost or 
     pricing data shall not be required under subsection (a) if--
       ``(A) the contract or subcontract being modified is a 
     contract or subcontract for which submission of cost or 
     pricing data may not be required by reason of paragraph 
     (1)(A) or (1)(B); and
       ``(B) the modification would not change the contract or 
     subcontract, as the case may be, from a contract or 
     subcontract for the acquisition of a commercial item to a 
     contract or subcontract for the acquisition of an item other 
     than a commercial item.
       ``(c) Authority To Require Cost or Pricing Data on Below-
     Threshold Contracts.--(1) Subject to paragraph (2), when 
     certified cost or pricing data are not required to be 
     submitted by subsection (a) for a contract, subcontract, or 
     modification of a contract or subcontract, such data may 
     nevertheless be required to be submitted by the head of the 
     procuring activity, but only if the head of the procuring 
     activity determines that such data are necessary for the 
     evaluation by the agency of the reasonableness of the price 
     of the contract, subcontract, or modification of a contract 
     or subcontract. In any case in which the head of the 
     procuring activity requires such data to be submitted under 
     this subsection, the head of the procuring activity shall 
     justify in writing the reason for such requirement.
       ``(2) The head of the procuring activity may not require 
     certified cost or pricing data to be submitted under this 
     paragraph for any contract or subcontract, or modification of 
     a contract or subcontract, covered by the exceptions in 
     subparagraph (A) or (B) of subsection (b)(1).
       ``(3) The head of a procuring activity may not delegate 
     functions under this paragraph.
       ``(d) Limitations on Other Information.--The Federal 
     Acquisition Regulation shall include the following:
       ``(1) Provisions concerning the types of information that 
     contracting officers may consider in determining whether the 
     price of a procurement to the Government is fair and 
     reasonable when certified cost or pricing data are not 
     required to be submitted under this section, including 
     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 of the 
     proposed contract or subcontract for the procurement.
       ``(2) Reasonable limitations on requests for sales data 
     relating to commercial items.
       ``(3) A requirement that a contracting officer shall, to 
     the maximum extent practicable, limit 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.
       ``(4) 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.''.
       (2) Section 2306a of such title is further amended--
       (A) by striking out subsection (h); and
       (B) by redesignating subsection (i) as subsection (h).
       (3) Section 2375 of title 10, United States Code, is 
     amended by striking out subsection (c).
       (b) Civilian Agency Acquisitions.--(1) Subsections (b), (c) 
     and (d) of section 304A of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 254b) are 
     amended to read as follows:
       ``(b) Exceptions.--
       ``(1) In general.--Submission of cost or pricing data shall 
     not be required under subsection (a) in the case of a 
     contract, a subcontract, or a modification of a contract or 
     subcontract--
       ``(A) for which the price agreed upon is based on--
       ``(i) adequate price competition; or
       ``(ii) prices set by law or regulation;
       ``(B) for the acquisition of a commercial item; or
       ``(C) in an exceptional case when the head of the procuring 
     activity, without delegation, determines that the 
     requirements of this section may be waived and justifies in 
     writing the reasons for such determination.
       ``(2) Modifications of contracts and subcontracts for 
     commercial items.--In the case of a modification of a 
     contract or subcontract for a commercial item that is not 
     covered by the exception on the submission of cost or pricing 
     data in paragraph (1)(A) or (1)(B), submission of cost or 
     pricing data shall not be required under subsection (a) if--
       ``(A) the contract or subcontract being modified is a 
     contract or subcontract for which submission of cost or 
     pricing data may not be required by reason of paragraph 
     (1)(A) or (1)(B); and
       ``(B) the modification would not change the contract or 
     subcontract, as the case may be, from a contract or 
     subcontract for the acquisition of a commercial item to a 
     contract or subcontract for the acquisition of an item other 
     than a commercial item.
       ``(c) Authority To Require Cost or Pricing Data on Below-
     Threshold Contracts.--(1) Subject to paragraph (2), when 
     certified cost or pricing data are not required to be 
     submitted by subsection (a) for a contract, subcontract, or 
     modification of a contract or

[[Page 1350]]

     subcontract, such data may nevertheless be required to be 
     submitted by the head of the procuring activity, but only if 
     the head of the procuring activity determines that such data 
     are necessary for the evaluation by the agency of the 
     reasonableness of the price of the contract, subcontract, or 
     modification of a contract or subcontract. In any case in 
     which the head of the procuring activity requires such data 
     to be submitted under this subsection, the head of the 
     procuring activity shall justify in writing the reason for 
     such requirement.
       ``(2) The head of the procuring activity may not require 
     certified cost or pricing data to be submitted under this 
     paragraph for any contract or subcontract, or modification of 
     a contract or subcontract, covered by the exceptions in 
     subparagraph (A) or (B) of subsection (b)(1).
       ``(3) The head of a procuring activity may not delegate the 
     functions under this paragraph.
       ``(d) Limitations on Other Information.--The Federal 
     Acquisition Regulation shall include the following:
       ``(1) Provisions concerning the types of information that 
     contracting officers may consider in determining whether the 
     price of a procurement to the Government is fair and 
     reasonable when certified cost or pricing data are not 
     required to be submitted under this section, including 
     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 of the 
     proposed contract or subcontract for the procurement.
       ``(2) Reasonable limitations on requests for sales data 
     relating to commercial items.
       ``(3) A requirement that a contracting officer shall, to 
     the maximum extent practicable, limit 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.
       ``(4) 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.''.
       (2) Section 304A of such Act is further amended--
       (A) by striking out subsection (h); and
       (B) by redesignating subsection (i) as subsection (h).

     SEC. 202. APPLICATION OF SIMPLIFIED PROCEDURES TO COMMERCIAL 
                   ITEMS.

       (a) Armed Services Acquisitions.--Section 2304(e) of title 
     10, United States Code, as amended by section 101(a), is 
     further amended--
       (1) in paragraph (1), by inserting after ``special 
     simplified procedures'' the following: ``for purchases of 
     commercial items and''; and
       (2) by adding at the end the following new paragraph:
       ``(4) The Federal Acquisition Regulation shall provide 
     that, in the case of a purchase of commercial items in an 
     amount greater than the simplified acquisition threshold, the 
     head of an agency--
       ``(A) 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 the Federal Acquisition Regulation; and
       ``(B) shall include in the contract file a written 
     description of the procedures used in awarding the contract 
     and the number of offers received.''.
       (b) Civilian Agency Acquisitions.--Section 303(e) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253), as amended by section 101(b), is further 
     amended--
       (1) in paragraph (1), by inserting after ``special 
     simplified procedures'' the following: ``for purchases of 
     commercial items and''; and
       (2) by adding at the end the following new paragraph:
       ``(5) The Federal Acquisition Regulation shall provide 
     that, in the case of a purchase of commercial items in an 
     amount greater than the simplified acquisition threshold, an 
     executive agency--
       ``(A) 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 the Federal Acquisition Regulation; and
       ``(B) shall include in the contract file a written 
     description of the procedures used in awarding the contract 
     and the number of offers received.''.
       (c) Simplified Notice.--Section 18 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 416) is amended--
       (1) in subsection (a)(5) (as redesignated by section 
     101(c))--
       (A) by striking out ``limited''; and
       (B) by inserting before ``submission'' the following: 
     ``issuance of solicitations and the''; and
       (2) in subsection (b)(6), by striking out ``threshold--'' 
     and inserting in lieu thereof ``threshold, or a contract for 
     the procurement of commercial items using simplified 
     procedures--''.

     SEC. 203. AMENDMENT TO DEFINITION OF COMMERCIAL ITEMS.

       Section 4(12)(F) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403(12)(F)) is amended by striking out 
     ``catalog''.

     SEC. 204. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO 
                   CONTRACTS AND SUBCONTRACTS FOR COMMERCIAL 
                   ITEMS.

       Subparagraph (B) of section 26(f)(2) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) is 
     amended--
       (1) by striking out clause (i) and inserting in lieu 
     thereof the following:
       ``(i) Contracts or subcontracts for the acquisition of 
     commercial items.''; and
       (2) by striking out clause (iii).
                TITLE III--ADDITIONAL REFORM PROVISIONS

     SEC. 301. GOVERNMENT RELIANCE ON THE PRIVATE SECTOR.

       (a) Government Reliance on the Private Sector.--The Office 
     of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
     amended by inserting after section 16 the following new 
     section:

     ``SEC. 17. GOVERNMENT RELIANCE ON THE PRIVATE SECTOR.

       ``It is the policy of the Federal Government to rely on the 
     private sector to supply the products and services the 
     Federal Government needs.''.
       (b) Clerical Amendment.--The table of contents for the 
     Office of Federal Procurement Policy Act (contained in 
     section 1(b)) is amended by inserting after the item relating 
     to section 16 the following new item:

``Sec. 17. Government reliance on the private sector.''.

     SEC. 302. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

       (a) Elimination of Certain Statutory Certification 
     Requirements.--(1)(A) Section 2410 of title 10, United States 
     Code, is amended--
       (i) in the heading, by striking out ``: certification''; 
     and
       (ii) in subsection (a)--
       (I) in the heading, by striking out ``Certification'';
       (II) by striking out ``unless'' and all that follows 
     through ``that--'' and inserting in lieu thereof ``unless--
     ''; and
       (III) in paragraph (2), by striking out ``to the best of 
     that person's knowledge and belief''.
       (B) The item relating to section 2410 in the table of 
     sections at the beginning of chapter 141 of such title is 
     amended to read as follows:

``Sec. 2410. Requests for equitable adjustment or other relief.''.
       (2) Section 2410b of title 10, United States Code, is 
     amended in paragraph (2) by striking out ``certification 
     and''.
       (3) Section 1352(b)(2) of title 31, United States Code, is 
     amended--
       (A) by striking out subparagraph (C); and
       (B) by inserting ``and'' after the semicolon at the end of 
     subparagraph (A).
       (4) Section 5152 of the Drug-Free Workplace Act of 1988 (41 
     U.S.C. 701) is amended--
       (A) in subsection (a)(1), by striking out ``has certified 
     to the contracting agency that it will'' and inserting in 
     lieu thereof ``agrees to'';
       (B) in subsection (a)(2), by striking out ``contract 
     includes a certification by the individual'' and inserting in 
     lieu thereof ``individual agrees''; and
       (C) in subsection (b)(1)--
       (i) by striking out subparagraph (A);
       (ii) by redesignating subparagraph (B) as subparagraph (A) 
     and in that subparagraph by striking out ``such certification 
     by failing to carry out''; and
       (iii) by redesignating subparagraph (C) as subparagraph 
     (B).
       (b) Elimination of Certain Regulatory Certification 
     Requirements.--
       (1) Current certification requirements.--(A) Not later than 
     210 days after the date of the enactment of this Act, any 
     certification required of contractors or offerors by the 
     Federal Acquisition Regulation that is not specifically 
     imposed by statute shall be removed by the Administrator for 
     Federal Procurement Policy from the Federal Acquisition 
     Regulation unless--
       (i) written justification for such certification is 
     provided to the Administrator by the Federal Acquisition 
     Regulatory Council; and
       (ii) the Administrator approves in writing the retention of 
     such certification.
       (B)(i) Not later than 210 days after the date of the 
     enactment of this Act, any certification required of 
     contractors or offerors by a procurement regulation of an 
     executive agency that is not specifically imposed by statute 
     shall be removed by the head of the executive agency from 
     such regulation unless--
       (I) written justification for such certification is 
     provided to the head of the executive agency by the senior 
     procurement executive; and
       (II) the head of the executive agency approves in writing 
     the retention of such certification.
       (ii) For purposes of clause (i), the term ``head of the 
     executive agency'' with respect to a military department 
     means the Secretary of Defense.
       (iii) The Secretary of Defense may delegate his duties 
     under this subparagraph only to the Under Secretary of 
     Defense for Acquisition and Technology.
       (2) Future certification requirements.--(A) Section 29 of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 425) 
     is amended--
       (i) by amending the heading to read as follows:

     ``SEC. 29. CONTRACT CLAUSES AND CERTIFICATIONS.'';

       (ii) by inserting ``(a) Nonstandard Contract Clauses.--'' 
     before ``The Federal Acquisition''; and
       (iii) by adding at the end the following new subsection:

[[Page 1351]]

       ``(c) Prohibition on Certification Requirements.--(1) A 
     requirement for a certification by a contractor or offeror 
     may not be included in the Federal Acquisition Regulation 
     unless--
       ``(A) the certification is specifically imposed by statute; 
     or
       ``(B) written justification for such certification is 
     provided to the Administrator for Federal Procurement Policy 
     by the Federal Acquisition Regulatory Council, and the 
     Administrator approves in writing the inclusion of such 
     certification.
       ``(2)(A) 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 is specifically imposed by statute; 
     or
       ``(ii) written justification for such certification 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 such 
     certification.
       ``(B) For purposes of subparagraph (A), the term `head of 
     the executive agency' with respect to a military department 
     means the Secretary of Defense.
       ``(C) The Secretary of Defense may delegate his duties 
     under this paragraph only to the Under Secretary of Defense 
     for Acquisition and Technology.''.
       (B) The item relating to section 29 in the table of 
     contents for the Office of Federal Procurement Policy Act 
     (contained in section 1(b)) (41 U.S.C. 401 note) is amended 
     to read as follows:

``Sec. 29. Contract clauses and certifications.''.
       (c) Policy of Congress.--Section 29 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 425) is further 
     amended by adding after subsection (a) the following new 
     subsection:
       ``(b) Construction of Certification Requirements.--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 refers to this subsection and 
     provides that, notwithstanding this subsection, such a 
     certification shall be required.''.

     SEC. 303. AMENDMENT TO COMMENCEMENT AND EXPIRATION OF 
                   AUTHORITY TO CONDUCT CERTAIN TESTS OF 
                   PROCUREMENT PROCEDURES.

       Subsection (j) of section 5061 of the Federal Acquisition 
     Streamlining Act of 1994 (41 U.S.C. 413 note) is amended to 
     read as follows:
       ``(j) Commencement and Expiration of Authority.--The 
     authority to conduct a test under subsection (a) in an agency 
     and to award contracts under such a test shall take effect on 
     October 1, 1996, and shall expire on October 1, 2000. 
     Contracts entered into before such authority expires in an 
     agency pursuant to a test shall remain in effect, 
     notwithstanding the expiration of the authority to conduct 
     the test under this section.''.

     SEC. 304. INTERNATIONAL COMPETITIVENESS.

       (a) Repeal of Provision Relating to Research, Development, 
     and Production Costs.--
       (1) Subject to paragraph (2), section 21(e) of the Arms 
     Export Control Act (22 U.S.C. 2761(e)) is amended--
       (A) by inserting ``and'' after the semicolon at the end of 
     paragraph (1)(A);
       (B) by striking out subparagraph (B) of paragraph (1);
       (C) by redesignating subparagraph (C) of paragraph (1) as 
     subparagraph (B);
       (D) by striking out paragraph (2); and
       (E) by redesignating paragraph (3) as paragraph (2).
       (2) Paragraph (1) shall be effective only if--
       (A) the President, in the budget of the President for 
     fiscal year 1997, proposes legislation that if enacted would 
     be qualifying offsetting legislation; and
       (B) there is enacted by October 1, 1996, qualifying 
     offsetting legislation.
       (3) If the conditions in paragraph (2) are met, then the 
     amendments made by paragraph (1) shall take effect on October 
     1, 1996.
       (4) For purposes of this subsection:
       (A) The term ``qualifying offsetting legislation'' means 
     legislation that includes provisions that--
       (i) offset fully the estimated revenues lost as a result of 
     the amendments made by paragraph (1) for each of the fiscal 
     years 1997 through 2000;
       (ii) expressly state that they are enacted for the purpose 
     of the offset described in clause (i); and
       (iii) are included in full on the PayGo scorecard.
       (B) The term ``PayGo scorecard'' means the estimates that 
     are made with respect to fiscal years through fiscal year 
     2000 by the Director of the Congressional Budget Office and 
     the Director of the Office of Management and Budget under 
     section 252(d) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985.
       (b) Effective Dates.--The amendments made by subsection (a) 
     shall be effective with respect to sales agreements pursuant 
     to sections 21 and 22 of the Arms Export Control Act (22 
     U.S.C. 2761 and 2762) entered into during the period 
     beginning on October 1, 1996, and ending on September 30, 
     2000.

     SEC. 305. PROCUREMENT INTEGRITY.

       (a) Amendment of Procurement Integrity Provision.--Section 
     27 of the Office of Federal Procurement Policy Act (41 U.S.C. 
     423) is amended to read as follows:

     ``SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING 
                   CONTRACTOR BID OR PROPOSAL INFORMATION OR 
                   SOURCE SELECTION INFORMATION.

       ``(a) Prohibition on Disclosing Procurement Information.--
     (1) A person described in paragraph (2) shall not, other than 
     as provided by law, 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) Paragraph (1) applies to any person who--
       ``(A) is a present or former officer or employee of the 
     United States, or a person who is acting or has acted for or 
     on behalf of, or who is advising or has advised the United 
     States 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.--A 
     person shall not, other than as provided by law, 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.
       ``(c) Prohibition on Disclosing or Obtaining Procurement 
     Information in Connection With a Protest.--(1) A person shall 
     not, other than as provided by law, knowingly violate the 
     terms of a protective order described in paragraph (2) by 
     disclosing or obtaining contractor bid or proposal 
     information or source selection information related to the 
     procurement contract concerned.
       ``(2) Paragraph (1) applies to any protective order issued 
     by the Defense Board or the Civilian Board in connection with 
     a protest against the award or proposed award of a Federal 
     agency procurement contract.
       ``(d) Penalties and Administrative Actions.--
       ``(1) Criminal penalties.--
       ``(A) Whoever engages in conduct constituting an offense 
     under subsection (a), (b), or (c) shall be imprisoned for not 
     more than one year or fined as provided under title 18, 
     United States Code, or both.
       ``(B) Whoever engages in conduct constituting an offense 
     under subsection (a), (b), or (c) for the purpose of either--
       ``(i) exchanging the information covered by such subsection 
     for anything of value, or
       ``(ii) obtaining or giving anyone a competitive advantage 
     in the award of a Federal agency procurement contract,
     shall be imprisoned for not more than 15 years or fined as 
     provided under title 18, United States Code, or both.
       ``(2) Civil penalties.--The Attorney General may bring a 
     civil action in the appropriate United States district court 
     against any person who engages in conduct constituting an 
     offense under subsection (a), (b), or (c). Upon proof of such 
     conduct by a preponderance of the evidence, the person is 
     subject to a civil penalty. An individual who engages in such 
     conduct is subject to a civil penalty of not more than 
     $50,000 for each violation plus twice the amount of 
     compensation which the individual received or offered for the 
     prohibited conduct. An organization that engages in such 
     conduct is subject to a civil penalty of not more than 
     $500,000 for each violation plus twice the amount of 
     compensation which the organization received or offered for 
     the prohibited conduct.
       ``(3) Administrative actions.--(A) If a Federal agency 
     receives information that a contractor or a person has 
     engaged in conduct constituting an offense under subsection 
     (a), (b), or (c), the Federal agency shall consider taking 
     one or more of the following actions, as appropriate:
       ``(i) Cancellation of the Federal agency procurement, if a 
     contract has not yet been awarded.
       ``(ii) Rescission of a contract with respect to which--
       ``(I) the contractor or someone acting for the contractor 
     has been convicted for an offense under subsection (a), (b), 
     or (c), or
       ``(II) the head of the agency that awarded the contract has 
     determined, based upon a preponderance of the evidence, that 
     the contractor or someone acting for the contractor has 
     engaged in conduct constituting such an offense.
       ``(iii) Initiation of suspension or debarment proceedings 
     for the protection of the Government in accordance with 
     procedures in the Federal Acquisition Regulation.
       ``(iv) Initiation of adverse personnel action, pursuant to 
     the procedures in chapter 75 of title 5, United States Code, 
     or other applicable law or regulation.
       ``(B) If a Federal agency rescinds a contract pursuant to 
     subparagraph (A)(ii), the United States is entitled to 
     recover, in addition to any penalty prescribed by law, the 
     amount expended under the contract.
       ``(C) For purposes of any suspension or debarment 
     proceedings initiated pursuant to subparagraph (A)(iii), 
     engaging in conduct constituting an offense under subsection 
     (a), (b), or (c) affects the present responsibility of a 
     Government contractor or subcontractor.
       ``(e) Definitions.--As used in this section:
       ``(1) 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 has not been previously made available to the 
     public or disclosed publicly:
       ``(A) Cost or pricing data (as defined by section 2306a(h) 
     of title 10, United States

[[Page 1352]]

     Code, with respect to procurements subject to that section, 
     and section 304A(h) of Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 254b(h), 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.
       ``(2) The term `source selection information' means any of 
     the following information prepared for use by a Federal 
     agency for the purpose of evaluating a bid or proposal to 
     enter into a Federal agency procurement contract, if that 
     information has not been previously 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.
       ``(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) The 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, his 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.
       ``(3) The term `Federal agency' has the meaning provided 
     such term in section 3 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 472).
       ``(4) 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) The term `contracting officer' means a person 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 such a contract.
       ``(6) 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 title IV of the 
     Federal Acquisition Reform Act of 1995.
       ``(f) Limitation on Protests.--No person may file a protest 
     against the award or proposed award of a Federal agency 
     procurement contract alleging an offense under subsection 
     (a), (b), or (c), of this section, nor may the Defense Board 
     or the Civilian Board consider such an allegation in deciding 
     a protest, unless that person reported to the Federal agency 
     responsible for the procurement information that the person 
     believed constituted evidence of the offense no later than 14 
     days after the person first discovered the possible offense.
       ``(g) Savings Provisions.--This section does not--
       ``(1) restrict the disclosure of information to, or its 
     receipt by, any 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 
     employee 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 Defense Board or the Civilian 
     Board in the course of a protest against the award or 
     proposed award of a Federal agency procurement contract; or
       ``(7) limit the applicability of any requirements, 
     sanctions, contract penalties, and remedies established under 
     any other law or regulation.''.
       (b) Repeals.--The following provisions of law are repealed:
       (1) Sections 2397, 2397a, 2397b, and 2397c of title 10, 
     United States Code.
       (2) Section 33 of the Federal Energy Administration Act of 
     1974 (15 U.S.C. 789).
       (3) Section 281 of title 18, United States Code.
       (4) Subsection (c) of section 32 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 428).
       (5) The first section 19 of the Federal Nonnuclear Energy 
     Research and Development Act of 1974 (42 U.S.C. 5918).
       (c) Clerical Amendments.--
       (1) The table of sections at the beginning of chapter 141 
     of title 10, United States Code, is amended by striking out 
     the items relating to sections 2397, 2397a, 2397b, and 2397c.
       (2) The table of sections at the beginning of chapter 15 of 
     title 18, United States Code, is amended by striking out the 
     item relating to section 281.
       (3) Section 32 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 428) is amended by redesignating subsections 
     (d), (e), (f), and (g) as subsections (c), (d), (e), and (f), 
     respectively.

     SEC. 306. FURTHER ACQUISITION STREAMLINING PROVISIONS.

       (a) Purpose of Office of Federal Procurement Policy.--(1) 
     Section 5(a) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 404) is amended to read as follows:
       ``(a) To promote economy, efficiency, and effectiveness in 
     the procurement of property and services by the executive 
     branch of the Federal Government, there shall be an Office of 
     Federal Procurement Policy (hereinafter referred to as the 
     `Office') in the Office of Management and Budget to provide 
     overall direction of Government-wide procurement policies, 
     regulations, procedures, and forms for executive agencies.''.
       (2) Sections 2 and 3 of such Act (41 U.S.C. 401 and 402) 
     are repealed.
       (b) Repeal of Report Requirement.--Section 8 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 407) is 
     repealed.
       (c) Repeal of Obsolete Provisions.--(1) Sections 10 and 11 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     409 and 410) are repealed.
       (d) Clerical Amendments.--The table of contents for the 
     Office of Federal Procurement Policy Act (contained in 
     section 1(b)) is amended by striking out the items relating 
     to sections 2, 3, 8, 10, and 11.
       (e) Repeal of Data Collection Requirement.--Subsection (h) 
     of section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759) is repealed.

     SEC. 307. JUSTIFICATION OF MAJOR DEFENSE ACQUISITION PROGRAMS 
                   NOT MEETING GOALS.

       Section 2220(b) of title 10, United States Code, is amended 
     by adding at the end the following: ``In addition, the 
     Secretary shall include in such annual report a justification 
     for the continuation of any program that--
       ``(1) is more than 50 percent over the cost goal 
     established for the development, procurement, or operational 
     phase of the program;
       ``(2) fails to achieve at least 50 percent of the 
     performance capability goals established for the development, 
     procurement, or operational phase of the program; or
       ``(3) is more than 50 percent behind schedule, as 
     determined in accordance with the schedule goal established 
     for the development, procurement, or operational phase of the 
     program.''.

     SEC. 308. ENHANCED PERFORMANCE INCENTIVES FOR ACQUISITION 
                   WORKFORCE.

       (a) Armed Services Acquisitions.--Subsection (b) of section 
     5001 of the Federal Acquisition Streamlining Act of 1994 
     (Public Law 103-355; 108 Stat. 3350; 10 U.S.C. 2220 note) is 
     amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by designating the second sentence as paragraph (2);
       (3) by inserting ``(1)'' after ``(b) Enhanced System of 
     Performance Incentives.--''; and
       (4) by adding at the end the following:
       ``(3) The Secretary shall include in the enhanced system of 
     incentives the following:
       ``(A) Pay bands.
       ``(B) Significant and material pay and promotion incentives 
     to be awarded, and significant and material unfavorable 
     personnel actions to be imposed, under the system 
     exclusively, or primarily, on the basis of the contributions 
     of personnel to the performance of the acquisition program in 
     relation to cost goals, performance goals, and schedule 
     goals.
       ``(C) Provisions for pay incentives and promotion 
     incentives to be awarded under the system.''.
       (b) Civilian Agency Acquisitions.--Subsection (c) of 
     section 5051 of the Federal Acquisition Streamlining Act of 
     1994 (Public Law 103-355; 108 Stat. 3351; 41 U.S.C. 263 note) 
     is amended--
       (1) by redesignating subparagraphs (A) and (B) of paragraph 
     (2) as clauses (i) and (ii), respectively;
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (3) by inserting ``(1)'' after ``(c) Enhanced System of 
     Performance Incentives.--''; and
       (4) by adding at the end the following:
       ``(2) The Deputy Director shall include in the enhanced 
     system of incentives under paragraph (1)(B) the following:
       ``(A) Pay bands.
       ``(B) Significant and material pay and promotion incentives 
     to be awarded, and significant and material unfavorable 
     personnel actions to be imposed, under the system 
     exclusively, or primarily, on the basis of the contributions 
     of personnel to the performance of the acquisition program in 
     relation to cost goals, performance goals, and schedule 
     goals.
       ``(C) Provisions for pay incentives and promotion 
     incentives to be awarded under the system.''.

[[Page 1353]]

     SEC. 309. RESULTS ORIENTED ACQUISITION PROGRAM CYCLE.

       Section 5002(a) of the Federal Acquisition Streamlining Act 
     of 1994 (Public Law 103-355; 108 Stat. 3350) is amended--
       (1) by inserting ``(1)'' before ``to ensure''; and
       (2) by striking out the period at the end and inserting in 
     lieu thereof the following: ``; (2) to ensure that the 
     regulations compress the time periods associated with 
     developing, procuring, and making operational new systems; 
     and (3) to ensure that Department of Defense directives 
     relating to development and procurement of information 
     systems (numbered in the 8000 series) and the Department of 
     Defense directives numbered in the 5000 series are 
     consolidated into one series of directives that is consistent 
     with such compressed time periods.''.

     SEC. 310. RAPID CONTRACTING GOAL.

       (a) Goal.--The Office of Federal Procurement Policy Act, as 
     amended by section 106, is further amended by adding at the 
     end the following new section:

     ``SEC. 36. RAPID CONTRACTING GOAL.

       ``The Administrator for Federal Procurement Policy shall 
     establish a goal of reducing by 50 percent the time necessary 
     for executive agencies to acquire an item for the user of 
     that item.''.
       (b) Clerical Amendment.--The table of contents for such 
     Act, contained in section 1(b), is amended by adding at the 
     end the following new item:

``Sec. 36. Rapid contracting goal.''.

     SEC. 311. ENCOURAGEMENT OF MULTIYEAR CONTRACTING.

       (a) Armed Services Acquisitions.--Section 2306b(a) of title 
     10, United States Code, is amended in the matter preceding 
     paragraph (1) by striking out ``may'' and inserting in lieu 
     thereof ``shall, to the maximum extent possible,''.
       (b) Civilian Agency Acquisitions.--Section 304B(a) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 254c(a)) is amended in the matter preceding paragraph 
     (1) by striking out ``may'' and inserting in lieu thereof 
     ``shall, to the maximum extent possible,''.

     SEC. 312. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, 
                   SCHEDULE, AND PERFORMANCE EXPERIENCE.

       (a) Armed Services Acquisitions.--(1) Chapter 137 of title 
     10, United States Code, is amended by inserting after section 
     2306b the following new section:

     ``Sec. 2306c. Contractor share of gains and losses from cost, 
       schedule, and performance experience

       ``The Federal Acquisition Regulation shall contain 
     provisions to ensure that, for any cost-type contract or 
     incentive-type contract, the contractor may be rewarded for 
     contract performance exceeding the contract cost, schedule, 
     or performance parameters to the benefit of the United States 
     and may be penalized for failing to adhere to cost, schedule, 
     or performance parameters to the detriment of the United 
     States.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2306b the following new item:

``2306c. Contractor share of gains and losses from cost, schedule, and 
              performance experience.''.
       (b) Civilian Agency Acquisitions.--(1) Title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.) is amended by inserting after section 
     304C the following new section:

     ``SEC. 304D. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, 
                   SCHEDULE, AND PERFORMANCE EXPERIENCE.

       ``The Federal Acquisition Regulation shall contain 
     provisions to ensure that, for any cost-type contract or 
     incentive-type contract, the contractor may be rewarded for 
     contract performance exceeding the contract cost, schedule, 
     or performance parameters to the benefit of the United States 
     and may be penalized for failing to adhere to cost, schedule, 
     or performance parameters to the detriment of the United 
     States.''.
       (2) The table of contents for such Act, contained in 
     section 1(b), is amended by inserting after the item relating 
     to section 304C the following new item:

``Sec. 304D. Contractor share of gains and losses from cost, schedule, 
              and performance experience.''.

     SEC. 313. PHASE FUNDING OF DEFENSE ACQUISITION PROGRAMS.

       Chapter 131 of title 10, United States Code, is amended by 
     adding at the end the following new section:

     ``Sec. 2221. Funding for results oriented acquisition program 
       cycle

       ``Before initial funding is made available for the 
     development, procurement, or operational phase of an 
     acquisition program for which an authorization of 
     appropriations is required by section 114 of this title, the 
     Secretary of Defense shall submit to Congress information 
     about the objectives and plans for the conduct of that phase 
     and the funding requirements for the entire phase. The 
     information shall identify the intended user of the system to 
     be acquired under the program and shall include objective, 
     quantifiable criteria for assessing the extent to which the 
     objectives and goals determined pursuant to section 2435 of 
     this title are achieved.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2221. Funding for results oriented acquisition program cycle.''.

     SEC. 314. IMPROVED DEPARTMENT OF DEFENSE CONTRACT PAYMENT 
                   PROCEDURES.

       (a) Review and Improvement of Procedures.--The Comptroller 
     General of the United States shall review commercial 
     practices regarding accounts payable and, considering the 
     results of the review, develop standards for the Secretary of 
     Defense to consider using for improving the contract payment 
     procedures and financial management systems of the Department 
     of Defense.
       (b) GAO Report.--Not later than September 30, 1996, the 
     Comptroller General shall submit to Congress a report 
     containing the following matters:
       (1) The weaknesses in the financial management processes of 
     the Department of Defense.
       (2) Deviations of the Department of Defense payment 
     procedures and financial management systems from the 
     standards developed pursuant to subsection (a), expressed 
     quantitatively.
       (3) The officials of the Department of Defense who are 
     responsible for resolving the deviations.

     SEC. 315. CONSIDERATION OF PAST PERFORMANCE IN ASSIGNMENT TO 
                   ACQUISITION POSITIONS.

       (a) Requirement.--Section 1701(a) of title 10, United 
     States Code, is amended by adding at the end the following: 
     ``The policies and procedures shall provide that education 
     and training in acquisition matters, and past performance of 
     acquisition responsibilities, are major factors in the 
     selection of personnel for assignment to acquisition 
     positions in the Department of Defense.''.
       (b) Performance Requirements for Assignment.--(1) Section 
     1723(a) of title 10, United States Code, is amended by 
     inserting ``, including requirements relating to demonstrated 
     past performance of acquisition duties,'' in the first 
     sentence after ``experience requirements''.
       (2) Section 1724(a)(2) of such title is amended by 
     inserting before the semicolon at the end the following: 
     ``and have demonstrated proficiency in the performance of 
     acquisition duties in the contracting position or positions 
     previously held''.
       (3) Section 1735 of such title is amended--
       (A) in subsection (b)--
       (i) by striking out ``and'' at the end of paragraph (2);
       (ii) by striking out the period at the end of paragraph (3) 
     and inserting in lieu thereof ``; and''; and
       (iii) by adding at the end the following:
       ``(4) must have demonstrated proficiency in the performance 
     of acquisition duties.'';
       (B) in subsection (c)--
       (i) by striking out ``and'' at the end of paragraph (2);
       (ii) by striking out the period at the end of paragraph (3) 
     and inserting in lieu thereof ``; and''; and
       (iii) by adding at the end the following:
       ``(4) must have demonstrated proficiency in the performance 
     of acquisition duties.'';
       (C) in subsection (d), by inserting before the period at 
     the end the following: ``, and have demonstrated proficiency 
     in the performance of acquisition duties''; and
       (D) in subsection (e), by inserting before the period at 
     the end the following: ``, and have demonstrated proficiency 
     in the performance of acquisition duties''.

     SEC. 316. ADDITIONAL DEPARTMENT OF DEFENSE PILOT PROGRAMS.

       (a) Authority To Conduct Defense Facility-Wide Pilot 
     Program.--The Secretary of Defense may conduct a pilot 
     program, to be known as the ``defense facility-wide pilot 
     program'', for the purpose of determining the potential for 
     increasing the efficiency and effectiveness of the 
     acquisition process in facilities.
       (b) Scope of Program.--At a facility designated as a 
     participant in the pilot program, the pilot program shall 
     consist of the following:
       (1) All contracts and subcontracts for defense supplies and 
     services that are performed at the facility.
       (2) All contracts and subcontracts performed elsewhere that 
     the Secretary determines are directly and substantially 
     related to the production of defense supplies and services at 
     the facility and are necessary for the pilot program.
       (c) Designation of Participating Facilities.--(1) The 
     Secretary may designate up to two facilities as participants 
     in the defense facility-wide pilot program.
       (2) Subject to subsection (g), the Secretary may determine 
     the scope and duration of a designation made under this 
     paragraph.
       (d) Criteria for Designation.--(1) Not later than 90 days 
     after the date of the enactment of this Act, the Secretary 
     shall provide to the congressional defense committees a 
     detailed description of the proposed criteria to be used in 
     selecting facilities for designation as participants in the 
     defense facility-wide pilot program. The Secretary may not 
     select any facilities for participation in the program until 
     at least 30 days have passed after providing such criteria.
       (2) After selecting both facilities for designation as 
     participants in the program, the Secretary shall notify the 
     congressional defense committees of the selection and submit 
     a description--
       (A) of the management goals and objectives intended to be 
     achieved for each facility selected; and
       (B) of the method by which the Secretary intends to monitor 
     and measure the perform

[[Page 1354]]

     ance of the selected facilities in meeting such management 
     goals and objectives.
       (3)(A) In developing the criteria referred to paragraph 
     (1), the Secretary shall ensure that such criteria reflect 
     the following objectives:
       (i) A significant reduction of the cost to the Government 
     for programs carried out at the designated facilities.
       (ii) A reduction of the schedule associated with programs 
     carried out at the designated facilities.
       (iii) An increased used of commercial practices and 
     procedures for programs carried at the designated facilities.
       (iv) That the designation of a facility under subsection 
     (c) does not place a competing domestic manufacturer at a 
     significant competitive disadvantage.
       (B) The criteria shall also require that, with respect to 
     any facility designated under subsection (c), all or 
     substantially all of the contracts to be awarded and 
     performed at the facility after the designation, and all or 
     substantially all of the subcontracts to be awarded under 
     those contracts and performed at the facility after the 
     designation, will be--
       (i) for the production of supplies or services on a firm-
     fixed price basis;
       (ii) awarded without requiring the contractors or 
     subcontractors to provide certified cost or pricing data 
     pursuant to section 2306a of title 10, United States Code; 
     and
       (iii) awarded and administered without the application of 
     cost accounting standards under section 26(f) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 422(f)).
       (e) Exemption From Certain Requirements.--In the case of a 
     contract or subcontract that is to be performed at a facility 
     designated for participation in the defense facility-wide 
     pilot program and that is subject to section 2306a of title 
     10, United States Code, or section 26(f) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 422(f)), the 
     Secretary of Defense may exempt such contract or subcontract 
     from the requirement to obtain certified cost or pricing data 
     under such section 2306a or the requirement to apply 
     mandatory cost accounting standards under such section 26(f) 
     if the Secretary determines that the contract or 
     subcontract--
       (1) is within the scope of the pilot program (as described 
     in subsection (b)); and
       (2) is fairly and reasonably priced based on information 
     other than certified cost and pricing data.
       (f) Special Authority.--The authority provided under 
     subsection (a) may include authority for the Secretary of 
     Defense--
       (1) to apply any amendment or repeal of a provision of law 
     made in this Act to the pilot program before the effective 
     date of such amendment or repeal; and
       (2) to apply to a procurement of items other than 
     commercial items under such program--
       (A) any authority provided in the Federal Acquisition 
     Streamlining Act of 1994 (Public Law 103-355) (or in an 
     amendment made by a provision of that Act) to waive a 
     provision of law in the case of commercial items, and
       (B) any exception applicable under this Act or the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355) (or 
     an amendment made by a provision of either Act) in the case 
     of commercial items,
     before the effective date of such provision (or amendment) to 
     the extent that the Secretary determines necessary to test 
     the application of such waiver or exception to procurements 
     of items other than commercial items.
       (g) Applicability.--(1) Subsections (e) and (f) apply with 
     respect to--
       (A) a contract that is awarded or modified during the 
     period described in paragraph (2); and
       (B) a contract that is awarded before the beginning of such 
     period and is to be performed (or may be performed), in whole 
     or in part, during such period.
       (2) The period referred to in paragraph (1) is the period 
     that begins 45 days after the date of the enactment of this 
     Act and ends on September 30, 1998.
       (h) Commercial Practices Encouraged.--With respect to 
     contracts and subcontracts within the scope of the defense 
     facility-wide pilot program, the Secretary of Defense may, to 
     the extent the Secretary determines appropriate and in 
     accordance with the law, adopt commercial practices in the 
     administration of contracts and subcontracts. Such commercial 
     practices may include elimination of Government audit and 
     access to records provisions; incorporation of commercial 
     oversight, inspection, and acceptance procedures; use of 
     alternative dispute resolution techniques (including 
     arbitration); and elimination of contract provisions 
     authorizing the Government to make unilateral changes to 
     contracts.

     SEC. 317. VALUE ENGINEERING FOR FEDERAL AGENCIES.

       (a) Use of Value Engineering.--The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
     section 310, is further amended by adding at the end the 
     following new section:

     ``SEC. 37. VALUE ENGINEERING.

       ``(a) In General.--Each executive agency shall establish 
     and maintain effective value engineering procedures and 
     processes.
       ``(b) Threshold.--The procedures and processes established 
     pursuant to subsection (a) shall be applied to those 
     programs, projects, systems, and products of an executive 
     agency that, in a ranking of all programs, projects, systems, 
     and products of the agency according to greatest dollar 
     value, are within the highest 20th percentile.
       ``(c) Definition.--As used in this section, the term `value 
     engineering' means a team effort, performed by qualified 
     agency or contractor personnel, directed at analyzing the 
     functions of a program, project, system, product, item of 
     equipment, building, facility, service, or supply for the 
     purpose of achieving the essential functions at the lowest 
     life-cycle cost that is consistent with required or improved 
     performance, reliability, quality, and safety.''.
       (b) Clerical Amendment.--The table of contents for such 
     Act, contained in section 1(b), is amended by adding at the 
     end the following new item:

``Sec. 37. Value engineering.''.

     SEC. 318. ACQUISITION WORKFORCE.

       (a) Acquisition Workforce.--(1) The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
     section 317, is further amended by adding at the end the 
     following new section:

     ``SEC. 38. ACQUISITION WORKFORCE.

       ``(a) Applicability.--This section does not apply to an 
     executive agency that is subject to chapter 87 of title 10, 
     United States Code.
       ``(b) Management Policies.--
       ``(1) Policies and procedures.--The head of each executive 
     agency, after consultation with the Administrator for Federal 
     Procurement Policy, 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 paragraphs (1) and (2) of section 2301(b) of title 
     5, United States Code.
       ``(2) 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.
       ``(3) Government-wide policies and evaluation.--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 such 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 (41 U.S.C. 263 
     note). The Administrator shall evaluate the implementation of 
     the provisions of this section by executive agencies.
       ``(c) Senior Procurement Executive Authorities and 
     Responsibilities.--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 implementation of 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.
       ``(d) Management Information Systems.--The Administrator 
     shall ensure that the heads of executive agencies collect and 
     maintain standardized information on the acquisition 
     workforce related to implementation of this section. To the 
     maximum extent practicable, such data requirements shall 
     conform to standards established by the Office of Personnel 
     Management for the Central Personnel Data File.
       ``(e) Acquisition Workforce.--The programs established by 
     this section shall apply to all employees in the General 
     Schedule Contracting series (GS-1102) and the General 
     Schedule Purchasing series (GS-1105), and to any employees 
     regardless of series who have been appointed as contracting 
     officers whose authority exceeds the micro-purchase 
     threshold, as that term is defined in section 32(g). The head 
     of each executive agency may include employees in other 
     series who perform acquisition or acquisition-related 
     functions.
       ``(f) Career Development.--
       ``(1) Career paths.--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 information available on such career paths.
       ``(2) 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.
       ``(3) 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

[[Page 1355]]

     of the career path. The head of each executive agency shall 
     also 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.
       ``(4) Performance incentives.--The head of each executive 
     agency, acting through the senior procurement executive for 
     the agency, shall provide for an enhanced system of 
     incentives for the encouragement of excellence in the 
     acquisition workforce which rewards performance of employees 
     that contribute to achieving the agency's performance goals. 
     The system of incentives shall include provisions that--
       ``(A) relate pay to performance;
       ``(B) provide for consideration, in personnel evaluations 
     and promotion decisions, of the extent to which the 
     performance of personnel contributed to achieving the 
     agency's performance goals; and
       ``(C) provide pay and promotion incentives to be awarded, 
     and unfavorable personnel actions to be imposed, under the 
     system on the basis of the contributions of personnel to 
     achieving the agency's performance goals.
       ``(g) Qualification Requirements.--
       ``(1) General schedule contracting series (gs-1102).--
       ``(A) Entry level qualifications.--The Director of the 
     Office of Personnel Management shall require that, after 
     October 1, 1996, a person may not be appointed to a position 
     in the GS-1102 occupational series unless the person--
       ``(i) has received a baccalaureate degree from an 
     accredited educational institution authorized to grant 
     baccalaureate degrees,
       ``(ii) has completed at least 24 semester credit hours (or 
     the equivalent) of study from an accredited institution of 
     higher education in any of the following disciplines: 
     accounting, business finance, law, contracts, purchasing, 
     economics, industrial management, marketing, quantitative 
     methods, or organization and management, or
       ``(iii) has passed a written test determined by the 
     Administrator for Federal Procurement Policy, after 
     consultation with the Director of the Office of Personnel 
     Management, to demonstrate the judgmental skills necessary 
     for positions in this series.
       ``(B) Qualifications for senior contracting positions.--The 
     Director of the Office of Personnel Management shall require 
     that, after October 1, 1996, persons may be appointed to 
     positions at and above full performance grade levels in the 
     GS-1102 occupational series only if those persons--
       ``(i) have satisfied the educational requirement either of 
     subparagraph (A)(i) or (A)(ii),
       ``(ii) have successfully completed all training required 
     for the position under subsection (f)(3), and
       ``(iii) have satisfied experience and other requirements 
     established by the Director for such positions.
     However, this requirement shall apply to persons employed on 
     October 1, 1996, in GS-1102 positions at those grade levels 
     only as a prerequisite for promotion to a GS-1102 position at 
     a higher grade.
       ``(2) General schedule purchasing series (gs-1105).--The 
     Director of the Office of Personnel Management shall require 
     that, after October 1, 1996, a person may not be appointed to 
     a position in the GS-1105 occupational series unless the 
     person--
       ``(A) has successfully completed 2 years of course work 
     from an accredited educational institution authorized to 
     grant degrees, or
       ``(B) has passed a written test determined by the 
     Administrator for Federal Procurement Policy, after 
     consultation with the Director of the Office of Personnel 
     Management, to demonstrate the judgmental skills necessary 
     for positions in this series.
       ``(3) Contracting officers.--The head of each executive 
     agency shall require that, beginning after October 1, 1996, a 
     person may be appointed as a contracting officer with 
     authority to award or administer contracts for amounts above 
     the micro-purchase threshold, as that term is defined in 
     section 32(g), only if the person--
       ``(A) has successfully completed all mandatory training 
     required of an employee in an equivalent GS-1102 or 1105 
     position under subsection (f)(3); and
       ``(B) meets experience and other requirements established 
     by the head of the agency, based on the dollar value and 
     complexity of the contracts that the employee will be 
     authorized to award or administer under the appointment as a 
     contracting officer.
       ``(4) Exceptions.--(A) The requirements set forth in 
     paragraphs (1) and (2), as applicable, shall not apply to any 
     person employed in the GS-1102 or GS-1105 series on October 
     1, 1996.
       ``(B) Employees of an executive agency who do not satisfy 
     the full qualification requirements for appointment as a 
     contracting officer under paragraph (3) may be appointed as a 
     contracting officer for a temporary period of time under 
     procedures established by the agency head. The procedures 
     shall--
       ``(i) require that the person have completed a significant 
     portion of the required training,
       ``(ii) require a plan be established for the balance of the 
     required training,
       ``(iii) specify a period of time for completion of the 
     training, and
       ``(iv) include provisions for withdrawing or terminating 
     the appointment prior to the scheduled expiration date, where 
     appropriate.
       ``(5) Waiver.--The senior procurement executive for an 
     executive agency may waive any or all of the qualification 
     requirements of paragraphs (1) and (2) for a person if the 
     person possesses significant potential for advancement to 
     levels of greater responsibility and authority, based on 
     demonstrated job performance and qualifying experience. This 
     authority may not be redelegated by the senior procurement 
     executive. With respect to each waiver granted under this 
     subsection, the senior procurement executive shall set forth 
     in writing the rationale for the decision to waive such 
     requirements.
       ``(h) Program Establishment and Implementation.--
       ``(1) Funding levels.--(A) The head of an executive agency 
     shall request in the budget for a fiscal year for the 
     agency--
       ``(i) for education and training under this section, an 
     amount equal to no less than 2.5 percent of the base 
     aggregate salary cost of the acquisition workforce subject to 
     this section for that fiscal year; and
       ``(ii) for salaries of the acquisition workforce, an amount 
     equal to no more than 97.5 percent of such base aggregate 
     salary cost.
       ``(B) The head of the executive agency shall set forth 
     separately the funding levels requested in the budget 
     justification documents submitted in support of the 
     President's budget submitted to Congress under section 1105 
     of title 31, United States Code.
       ``(C) Funds appropriated for education and training under 
     this section may not be obligated or used for any other 
     purpose.
       ``(2) Interagency agreements.--The head of an executive 
     agency may enter into a written agreement with another agency 
     to participate in programs established under this section on 
     a reimbursable basis.
       ``(3) Tuition assistance.--Notwithstanding the prohibition 
     in section 4107(b) of title 5, United States Code, the head 
     of each executive agency may provide for tuition 
     reimbursement and education (including a full-time course of 
     study leading to a degree) for acquisition personnel in the 
     agency related to the purposes of this section.
       ``(4) Intern programs.--The head of each executive agency 
     may establish intern programs in order to recruit highly 
     qualified and talented individuals and provide them with 
     opportunities for accelerated promotions, career broadening 
     assignments, and specified training for advancement to senior 
     acquisition positions. For such programs, the head of an 
     executive agency, without regard to the provisions of title 
     5, United States Code, may appoint individuals to competitive 
     GS-5, GS-7, or GS-9 positions in the General Schedule 
     Contracting series (GS-1102) who have graduated from 
     baccalaureate or master's programs in purchasing or 
     contracting from accredited educational institutions 
     authorized to grant baccalaureate and master's degrees.
       ``(5) Cooperative education program.--The head of each 
     executive agency may establish an agencywide cooperative 
     education credit program for acquisition positions. Under the 
     program, the head of the executive agency may enter into 
     cooperative arrangements with one or more accredited 
     institutions of higher education which provide for such 
     institutions to grant undergraduate credit for work performed 
     in such position.
       ``(6) Scholarship program.--
       ``(A) Establishment.--Where deemed appropriate, the head of 
     each executive agency may establish a scholarship program for 
     the purpose of qualifying individuals for acquisition 
     positions in the agency.
       ``(B) Eligibility.--To be eligible to participate in a 
     scholarship program established under this paragraph by an 
     executive agency, an individual must--
       ``(i) be accepted for enrollment or be currently enrolled 
     as a full-time student at an accredited educational 
     institution authorized to grant baccalaureate or graduate 
     degrees (as appropriate);
       ``(ii) be pursuing a course of education that leads toward 
     completion of a bachelor's, master's, or doctor's degree (as 
     appropriate) in a qualifying field of study, as determined by 
     the head of the agency;
       ``(iii) sign an agreement described in subparagraph (C) 
     under which the participant agrees to serve a period of 
     obligated service in the agency in an acquisition position in 
     return for payment of educational assistance as provided in 
     the agreement; and
       ``(iv) meet such other requirements as the head of the 
     agency prescribes.
       ``(C) Agreement.--An agreement between the head of an 
     executive agency and a participant in a scholarship program 
     established under this paragraph shall be in writing, shall 
     be signed by the participant, and shall include the following 
     provisions:
       ``(i) The agreement of the head of the agency to provide 
     the participant with educational assistance for a specified 
     number of school years, not to exceed 4, during which the 
     participant is pursuing a course of education in a qualifying 
     field of study. The assistance may include payment of 
     tuition, fees, books, laboratory expenses, and a stipend.
       ``(ii) The participant's agreement--

       ``(I) to accept such educational assistance,

       ``(II) to maintain enrollment and attendance in the course 
     of education until completed,
       ``(III) while enrolled in such course, to maintain an 
     acceptable level of academic standing (as prescribed by the 
     head of the agency), and
       ``(IV) after completion of the course of education, to 
     serve as a full-time employee in an acquisition position in 
     the agency for a period of time of one calendar year for each 
     school year or part thereof for which the participant was 
     provided a scholarship under the program.

[[Page 1356]]

       ``(D) Repayment.--(i) Any person participating in a program 
     established under this paragraph shall agree to pay to the 
     United States the total amount of educational assistance 
     provided to the person under the program if the person is 
     voluntarily separated from the agency or involuntarily 
     separated for cause from the agency before the end of the 
     period for which the person has agreed to continue in the 
     service of the agency in an acquisition position.
       ``(ii) If an employee fails to fulfill the agreement to pay 
     to the Government the total amount of educational assistance 
     provided to the person under the program, a sum equal to the 
     amount of the educational assistance may be recovered by the 
     Government from the employee (or the estate of the employee) 
     by setoff against accrued pay, compensation, amount of 
     retirement credit, or other amount due the employee from the 
     Government; and by such other method as is provided by law 
     for the recovery of amounts owing to the Government.
       ``(iii) The head of an executive agency may waive in whole 
     or in part a repayment required under this paragraph if the 
     head of the agency determines the recovery would be against 
     equity and good conscience or would be contrary to the best 
     interests of the United States.
       ``(E) Termination of agreement.--There shall be no 
     requirement that a position be offered to a person after such 
     person successfully completes a course of education required 
     by an agreement under this paragraph. If no position is 
     offered, the agreement shall be considered terminated.''.
       (2) The table of contents for such Act, contained in 
     section 1(b), is amended by adding at the end the following 
     new item:

``Sec. 38. Acquisition workforce.''.
       (b) Additional Amendments.--Section 6(d)(5) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 405), is 
     amended--
       (1) in subparagraph (A), by striking out ``Government-wide 
     career management programs for a professional procurement 
     work force'' and inserting in lieu thereof ``the development 
     of a professional acquisition workforce Government-wide'';
       (2) in subparagraph (B)--
       (A) by striking out ``procurement by the'' and inserting in 
     lieu thereof ``acquisition by the''; and
       (B) by striking out ``and'' at the end of the subparagraph; 
     and
       (3) by striking out subparagraph (C) and inserting in lieu 
     thereof the following:
       ``(C) administer the provisions of section 38;
       ``(D) collect data and analyze acquisition workforce data 
     from the Office of Personnel Management, the heads of 
     executive agencies, and, through periodic surveys, from 
     individual employees;
       ``(E) periodically analyze acquisition career fields to 
     identify critical competencies, duties, tasks, and related 
     academic prerequisites, skills, and knowledge;
       ``(F) coordinate and assist agencies in identifying and 
     recruiting highly qualified candidates for acquisition 
     fields;
       ``(G) develop instructional materials for acquisition 
     personnel in coordination with private and public acquisition 
     colleges and training facilities;
       ``(H) evaluate the effectiveness of training and career 
     development programs for acquisition personnel;
       ``(I) promote the establishment and utilization of academic 
     programs by colleges and universities in acquisition fields;
       ``(J) facilitate, to the extent requested by agencies, 
     interagency intern and training programs; and
       ``(K) perform other career management or research functions 
     as directed by the Administrator.''.

     SEC. 319. DEMONSTRATION PROJECT RELATING TO CERTAIN PERSONNEL 
                   MANAGEMENT POLICIES AND PROCEDURES.

       (a) Commencement.--The Secretary of Defense is encouraged 
     to take such steps as may be necessary to provide for the 
     commencement of a demonstration project, the purpose of which 
     would be to determine the feasibility or desirability of one 
     or more proposals for improving the personnel management 
     policies or procedures that apply with respect to the 
     acquisition workforce of the Department of Defense.
       (b) Terms and Conditions.--
       (1) In general.--Except as otherwise provided in this 
     subsection, any demonstration project described in subsection 
     (a) shall be subject to section 4703 of title 5, United 
     States Code, and all other provisions of such title that 
     apply with respect to any demonstration project under such 
     section.
       (2) Exceptions.--Subject to paragraph (3), in applying 
     section 4703 of title 5, United States Code, with respect to 
     a demonstration project described in subsection (a)--
       (A) ``180 days'' in subsection (b)(4) of such section shall 
     be deemed to read ``120 days'';
       (B) ``90 days'' in subsection (b)(6) of such section shall 
     be deemed to read ``30 days''; and
       (C) subsection (d)(1)(A) of such section shall be 
     disregarded.
       (3) Condition.--Paragraph (2) shall not apply with respect 
     to a demonstration project unless it--
       (A) involves only the acquisition workforce of the 
     Department of Defense (or any part thereof); and
       (B) commences during the 3-year period beginning on the 
     date of the enactment of this Act.
       (c) Definition.--For purposes of this section, the term 
     ``acquisition workforce'' refers to the persons serving in 
     acquisition positions within the Department of Defense, as 
     designated pursuant to section 1721(a) of title 10, United 
     States Code.

     SEC. 320. COOPERATIVE PURCHASING.

       (a) Delay in Opening Certain Federal Supply Schedules to 
     Use by State, Local, and Indian Tribal Governments.--The 
     Administrator of General Services may not use the authority 
     of section 201(b)(2) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481(b)(2)) to 
     provide for the use of Federal supply schedules of the 
     General Services Administration until after the later of--
       (1) the date on which the 14-month period beginning on the 
     date of the enactment of this Act expires; or
       (2) the date on which all of the following conditions are 
     met:
       (A) The Administrator has considered the report of the 
     Comptroller General required by subsection (b).
       (B) The Administrator has submitted comments on such report 
     to the congressional committees as required by subsection 
     (c).
       (C) A period of 30 days after the date of submission of 
     such comments to the congressional committees referred to in 
     subsection (d) has expired.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Administrator of General Services and to the 
     congressional committees referred to in subsection (d) a 
     report on the implementation of section 201(b) of the Federal 
     Property and Administrative Services Act of 1949. The report 
     shall include the following:
       (1) An assessment of the effect on industry, including 
     small businesses and local dealers, of providing for the use 
     of Federal supply schedules by the entities described in 
     section 201(b)(2)(A) of the Federal Property and 
     Administrative Services Act of 1949.
       (2) An assessment of the effect on such entities of 
     providing for the use of Federal supply schedules by them.
       (c) Comments on Report by Administrator.--Not later than 30 
     days after receiving the report of the Comptroller General 
     required by subsection (b), the Administrator of General 
     Services shall submit to the congressional committees 
     referred to in subsection (d) comments on the report, 
     including the Administrator's comments on whether the 
     Administrator plans to provide any Federal supply schedule 
     for the use of any entity described in section 201(b)(2)(A) 
     of the Federal Property and Administrative Services Act of 
     1949.
       (d) Congressional Committees.--The report required by 
     subsection (b) and the comments required by subsection (c) 
     shall be submitted to the Governmental Affairs Committee of 
     the Senate and the Committee on Government Reform and 
     Oversight of the House of Representatives.
       (e) Calculation of 30-Day Period.--For purposes of 
     subsection (a)(2)(C), the calculation of the 30-day period 
     shall exclude Saturdays, Sundays, and holidays, and any day 
     on which neither House of Congress is in session because of 
     an adjournment sine die, a recess of more than 3 days, or an 
     adjournment of more than 3 days.
              TITLE IV--STREAMLINING OF DISPUTE RESOLUTION
                     Subtitle A--General Provisions

     SEC. 401. DEFINITIONS.

       (a) In General.--The Office of Federal Procurement Policy 
     Act (41 U.S.C. 401 et seq.) is amended by adding at the end 
     the following:
                     ``TITLE II--DISPUTE RESOLUTION
                    ``Subtitle A--General Provisions

     ``SEC. 201. DEFINITIONS.

       ``In this title:
       ``(1) The term `Defense Board' means the Department of 
     Defense Board of Contract Appeals established pursuant to 
     section 8(a) of the Contract Disputes Act of 1978 (41 U.S.C. 
     607).
       ``(2) The term `Civilian Board' means the Civilian Board of 
     Contract Appeals established pursuant to section 8(b) of the 
     Contract Disputes Act of 1978 (41 U.S.C. 607).
       ``(3) The term `Board judge' means a member of the Defense 
     Board or the Civilian Board, as the case may be.
       ``(4) The term `Chairman' means the Chairman of the Defense 
     Board or the Civilian Board, as the case may be.
       ``(5) The term `Board concerned' means--
       ``(A) the Defense Board with respect to matters within its 
     jurisdiction; and
       ``(B) the Civilian Board with respect to matters within its 
     jurisdiction.
       ``(6) The term `executive agency'--
       ``(A) with respect to contract disputes and protests under 
     the jurisdiction of the Defense Board, means the Department 
     of Defense, the Department of the Army, the Department of the 
     Navy, or the Department of the Air Force; and
       ``(B) with respect to contract disputes and protests under 
     the jurisdiction of the Civilian Board, has the meaning given 
     by section 4(1) of this Act except that the term does not 
     include the Department of Defense, the Department of the 
     Army, the Department of the Navy, and the Department of the 
     Air Force.
       ``(7) The term `alternative means of dispute resolution' 
     has the meaning given by section 571(3) of title 5, United 
     States Code.
       ``(8) The term `protest' means a written objection by an 
     interested party to any of the following:

[[Page 1357]]

       ``(A) A solicitation or other request by an executive 
     agency for offers for a contract for the procurement of 
     property or services.
       ``(B) The cancellation of such a solicitation or other 
     request.
       ``(C) An award or proposed award of such a contract.
       ``(9) The term `interested party', with respect to a 
     contract or a solicitation or other request for offers, means 
     an actual or prospective bidder or offeror whose direct 
     economic interest would be affected by the award of the 
     contract or by failure to award the contract.
       ``(10) The term `prevailing party', with respect to a 
     determination of the Board under section 214(h)(2) that a 
     decision of the head of an executive agency is arbitrary or 
     capricious or violates a statute or regulation, means a party 
     that showed that the decision was arbitrary or capricious or 
     violated a statute or regulation.''.
       (b) Conforming Amendments.--The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.) is further 
     amended--
       (1) by inserting the following before section 1:
           ``TITLE I--FEDERAL PROCUREMENT POLICY GENERALLY'';
     and
       (2) in section 4, by striking out ``As used in this Act:'' 
     and inserting in lieu thereof ``Except as otherwise 
     specifically provided, as used in this Act:''.
 Subtitle B--Establishment of Civilian and Defense Boards of Contract 
                                Appeals

     SEC. 411. ESTABLISHMENT.

       Subsections (a) and (b) of section 8 of the Contract 
     Disputes Act of 1978 (41 U.S.C. 607) are amended to read as 
     follows:
       ``(a) There is established in the Department of Defense a 
     board of contract appeals to be known as the Department of 
     Defense Board of Contract Appeals.
       ``(b) There is established in the General Services 
     Administration a board of contract appeals to be known as the 
     Civilian Board of Contract Appeals.''.

     SEC. 412. MEMBERSHIP.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 401, is further amended by 
     adding at the end the following:

     ``SEC. 202. MEMBERSHIP.

       ``(a) Appointment.--(1)(A) The Defense Board shall consist 
     of judges appointed by the Secretary of Defense from a 
     register of applicants maintained by the Defense Board, in 
     accordance with rules issued by the Defense Board for 
     establishing and maintaining a register of eligible 
     applicants and selecting Defense Board judges. The Secretary 
     shall appoint a judge without regard to political affiliation 
     and solely on the basis of the professional qualifications 
     required to perform the duties and responsibilities of a 
     Defense Board judge.
       ``(B) The Civilian Board shall consist of judges appointed 
     by the Administrator of General Services from a register of 
     applicants maintained by the Civilian Board, in accordance 
     with rules issued by the Civilian Board for establishing and 
     maintaining a register of eligible applicants and selecting 
     Civilian Board judges. The Administrator shall appoint a 
     judge 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 
     judge.
       ``(2) The members of the Defense Board and 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, United States Code, with an 
     additional requirement that such members shall have had not 
     fewer than five years of experience in public contract law.
       ``(3) Notwithstanding paragraph (2) and subject to 
     subsection (b), the following persons shall serve as Board 
     judges:
       ``(A) For the Defense Board, any full-time member of the 
     Armed Services Board of Contract Appeals serving as such on 
     the day before the effective date of this title.
       ``(B) For the Civilian Board, any full-time member of any 
     agency board of contract appeals other than the Armed 
     Services Board of Contract Appeals serving as such on the day 
     before the effective date of this title.
       ``(C) For either the Defense Board or the Civilian Board, 
     any person serving on the day before the effective date of 
     this title in a position at a level of assistant general 
     counsel or higher with authority delegated from the 
     Comptroller General to decide bid protests under subchapter V 
     of chapter 35 of title 31, United States Code.
       ``(b) Removal.--Members of the Defense Board and the 
     Civilian Board shall be subject to removal in the same manner 
     as administrative law judges, as provided in section 7521 of 
     title 5, United States Code.
       ``(c) Compensation.--Compensation for the Chairman of the 
     Defense Board and the Chairman of the Civilian Board and all 
     other members of each Board shall be determined under section 
     5372a of title 5, United States Code.''.

     SEC. 413. CHAIRMAN.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 412, is further amended by 
     adding at the end the following:

     ``SEC. 203. CHAIRMAN.

       ``(a) Designation.--(1)(A) The Chairman of the Defense 
     Board shall be designated by the Secretary of Defense to 
     serve for a term of five years. The Secretary shall select 
     the Chairman from among sitting judges each of whom has had 
     at least five years of service--
       ``(i) as a member of the Armed Services Board of Contract 
     Appeals; or
       ``(ii) in a position at a level of assistant general 
     counsel or higher with authority delegated from the 
     Comptroller General to decide bid protests under subchapter V 
     of chapter 35 of title 31, United States Code (as in effect 
     on the day before the effective date of this title).
       ``(B) The Chairman of the Civilian Board shall be 
     designated by the Administrator of General Services to serve 
     for a term of five years. The Administrator shall select the 
     Chairman from among sitting judges each of whom has had at 
     least five years of service--
       ``(i) as a member of an agency board of contract appeals 
     other than the Armed Services Board of Contract Appeals; or
       ``(ii) in a position at a level of assistant general 
     counsel or higher with authority delegated from the 
     Comptroller General to decide bid protests under subchapter V 
     of chapter 35 of title 31, United States Code (as in effect 
     on the day before the effective date of this title).
       ``(2) A Chairman of a Board may continue to serve after the 
     expiration of the Chairman's term until a successor has taken 
     office. A Chairman may be reappointed any number of times.
       ``(b) Responsibilities.--The Chairman of the Defense Board 
     or the Civilian Board, as the case may be, shall be 
     responsible on behalf of the Board for the executive and 
     administrative operation of the Board, including functions of 
     the Board with respect to the following:
       ``(1) The selection, appointment, and fixing of the 
     compensation of such personnel, pursuant to part III of title 
     5, United States Code, as the Chairman considers necessary or 
     appropriate, including a Clerk of the Board, a General 
     Counsel, and clerical and legal assistance for Board judges.
       ``(2) The supervision of personnel employed by or assigned 
     to the Board, and the distribution of work among such 
     personnel.
       ``(3) The operation of an Office of the Clerk of the Board, 
     including the receipt of all filings made with the Board, the 
     assignment of cases, and the maintenance of all records of 
     the Board.
       ``(4) The prescription of such rules and regulations as the 
     Chairman considers necessary or appropriate for the 
     administration and management of the Board.
       ``(c) Vice Chairmen.--The Chairman of the Defense Board or 
     the Civilian Board, as the case may be, may designate up to 
     four other Board judges as Vice Chairmen. The Chairman may 
     divide the Board into two divisions, one for handling 
     contract disputes and one for handling protests, and, if such 
     division is made, shall assign a Vice Chairman to head each 
     division. The Vice Chairmen, in the order designated by the 
     Chairman, shall act in the place and stead of the Chairman 
     during the absence of the Chairman.''.

     SEC. 414. RULEMAKING AUTHORITY.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 413, is further amended by 
     adding at the end the following:

     ``SEC. 204. RULEMAKING AUTHORITY.

       ``(a) In General.--Except as provided by section 452 of the 
     Federal Acquisition Reform Act of 1995, the Chairman of the 
     Defense Board and the Chairman of the Civilian Board shall 
     jointly issue and maintain--
       ``(1) such procedural rules and regulations as are 
     necessary to the exercise of the functions of the Boards 
     under sections 213 and 214; and
       ``(2) statements of policy of general applicability with 
     respect to such functions.
       ``(b) Board Procedures.--In issuing procedural rules and 
     regulations for the exercise of the Boards' protest function 
     under section 214, the Chairmen shall take due notice of 
     executive agency procedures for the resolution of protests as 
     a discretionary alternative to resolution of protests by the 
     Boards and shall ensure that the rules and regulations 
     governing the time for filing protests with the Boards make 
     appropriate allowance for the use of such executive agency 
     procedures by interested parties.''.

     SEC. 415. AUTHORIZATION OF APPROPRIATIONS.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 414, is further amended by 
     adding at the end the following:

     ``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated for fiscal year 
     1997 and each succeeding fiscal year such sums as may be 
     necessary to carry out the provisions of this title. Funds 
     for the activities of each Board shall be separately 
     appropriated for such purpose. Funds appropriate pursuant to 
     this section shall remain available until expended.''.
   Subtitle C--Functions of Defense and Civilian Boards of Contract 
                                Appeals

     SEC. 421. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 415, is further amended by 
     adding at the end the following:
``Subtitle B--Functions of the Defense and Civilian Boards of Contract 
                                Appeals

     ``SEC. 211. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

       ``(a) Requirement To Provide Services Upon Request.--The 
     Defense Board and the Civilian Board shall each provide 
     alternative means of dispute resolution for any disagreement 
     regarding a contract or prospective contract of an executive 
     agency upon the request of all parties to the disagreement.
       ``(b) Personnel Qualified To Act.--Each Board judge and 
     each attorney employed by

[[Page 1358]]

     the Board concerned shall be considered to be qualified to 
     act for the purpose of conducting alternative means of 
     dispute resolution under this section.
       ``(c) Services To Be Provided Without Charge.--Any services 
     provided by the Board concerned or any Board judge or 
     employee pursuant to this section shall be provided without 
     charge.
       ``(d) Recusal of Certain Personnel Upon Request.--In the 
     event that a matter which is presented to the Board concerned 
     for alternative means of dispute resolution, pursuant to this 
     section, later becomes the subject of formal proceedings 
     before such Board, any Board judge or employee who was 
     involved in the alternative means of dispute resolution 
     shall, if requested by any party to the formal proceeding, 
     take no part in that proceeding.''.

     SEC. 422. ALTERNATIVE DISPUTE RESOLUTION OF DISPUTES AND 
                   PROTESTS SUBMITTED TO BOARDS.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 421, is further amended by 
     adding at the end the following:

     ``SEC. 212. ALTERNATIVE DISPUTE RESOLUTION OF DISPUTES AND 
                   PROTESTS SUBMITTED TO BOARDS.

       ``With reasonable promptness after the submission to the 
     Defense Board or the Civilian Board of a contract dispute 
     under section 213 or a bid protest under section 214, a Board 
     judge to whom the contract dispute or protest is assigned 
     shall request the parties to meet with a Board judge, or an 
     attorney employed by the Board concerned, for the purpose of 
     attempting to resolve the dispute or protest through 
     alternative means of dispute resolution. Formal proceedings 
     in the appeal shall then be suspended until such time as any 
     party or a Board judge to whom the dispute or protest is 
     assigned determines that alternative means of dispute 
     resolution are not appropriate for resolution of the dispute 
     or protest.''.

     SEC. 423. CONTRACT DISPUTES.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 422, is further amended by 
     adding at the end the following:

     ``SEC. 213. CONTRACT DISPUTES.

       ``The Defense Board shall have jurisdiction as provided by 
     section 8(a) of the Contract Disputes Act of 1978 (41 U.S.C. 
     601-613). The Civilian Board shall have jurisdiction as 
     provided by section 8(b) of such Act.''.

     SEC. 424. PROTESTS.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 423, is further amended by 
     adding at the end the following:

     ``SEC. 214. PROTESTS.

       ``(a) Review Required Upon Request.--Upon request of an 
     interested party in connection with any procurement conducted 
     by an executive agency, the Defense Board or the Civilian 
     Board, as the case may be, shall review, as provided in this 
     section, any decision by the head of the executive agency 
     alleged to be arbitrary or capricious or to violate a statute 
     or regulation. A decision or order of the Board concerned 
     pursuant to this section shall not be subject to 
     interlocutory appeal or review.
       ``(b) Standard of Review.--In deciding a protest, the Board 
     concerned may consider all evidence that is relevant to the 
     decision under protest. The protester may prevail only by 
     showing that the decision was arbitrary or capricious or 
     violated a statute or regulation.
       ``(c) Notification.--Within one day after the receipt of a 
     protest, the Board concerned shall notify the executive 
     agency involved of the protest.
       ``(d) Suspension of Contract Award.--(1) Except as provided 
     in paragraph (2) of this subsection, a contract may not be 
     awarded in any procurement after the executive agency has 
     received notice of a protest with respect to such procurement 
     from the Board concerned and while the protest is pending.
       ``(2) The head of the procuring activity responsible for 
     award of a contract may authorize the award of the contract 
     (notwithstanding a protest of which the executive agency has 
     notice under this section)--
       ``(A) upon a written finding that urgent and compelling 
     circumstances which significantly affect interests of the 
     United States will not permit waiting for the decision of the 
     Board concerned under this section; and
       ``(B) after the Board concerned is advised of that finding.
       ``(3) A finding may not be made under paragraph (2)(A) of 
     this subsection unless the award of the contract is otherwise 
     likely to occur within 30 days after the making of such 
     finding.
       ``(4) The suspension of the award under paragraph (1) shall 
     not preclude the executive agency concerned from continuing 
     the procurement process up to but not including the award of 
     the contract.
       ``(e) Suspension of Contract Performance.--(1) A contractor 
     awarded an executive agency contract may, during the period 
     described in paragraph (4), begin performance of the contract 
     and engage in any related activities that result in 
     obligations being incurred by the United States under the 
     contract unless the contracting officer responsible for the 
     award of the contract withholds authorization to proceed with 
     performance of the contract.
       ``(2) The contracting officer may withhold an authorization 
     to proceed with performance of the contract during the period 
     described in paragraph (4) if the contracting officer 
     determines in writing that--
       ``(A) a protest is likely to be filed; and
       ``(B) the immediate performance of the contract is not in 
     the best interests of the United States.
       ``(3)(A) If the executive agency awarding the contract 
     receives notice of a protest in accordance with this section 
     during the period described in paragraph (4)--
       ``(i) the contracting officer may not authorize performance 
     of the contract to begin while the protest is pending; or
       ``(ii) if authorization for contract performance to proceed 
     was not withheld in accordance with paragraph (2) before 
     receipt of the notice, the contracting officer shall 
     immediately direct the contractor to cease performance under 
     the contract and to suspend any related activities that may 
     result in additional obligations being incurred by the United 
     States under that contract.
       ``(B) Performance and related activities suspended pursuant 
     to subparagraph (A)(ii) by reason of a protest may not be 
     resumed while the protest is pending.
       ``(C) The head of the procuring activity may authorize the 
     performance of the contract (notwithstanding a protest of 
     which the executive agency has notice under this section)--
       ``(i) upon a written finding that urgent and compelling 
     circumstances that significantly affect interests of the 
     United States will not permit waiting for the decision 
     concerning the protest by the Board concerned; and
       ``(ii) after the Board concerned is notified of that 
     finding.
       ``(4) The period referred to in paragraphs (2) and (3)(A), 
     with respect to a contract, is the period beginning on the 
     date of the contract award and ending on the later of--
       ``(A) the date that is 10 days after the date of the 
     contract award; or
       ``(B) the date that is 5 days after the debriefing date 
     offered to an unsuccessful offeror for any debriefing that is 
     requested and, when requested, is required.
       ``(f) The authority of the head of the procuring activity 
     to make findings and to authorize the award and performance 
     of contracts under subsections (d) and (e) of this section 
     may not be delegated.
       ``(g) Procedures.--
       ``(1) Proceedings and discovery.--The Board concerned shall 
     conduct proceedings and allow discovery to the minimum extent 
     necessary for the expeditious, fair, and cost-effective 
     resolution of the protest. The Board shall allow discovery 
     only in a case in which the Board determines that the written 
     submissions of the parties do not provide an adequate basis 
     for a fair resolution of the protest. Such discovery shall be 
     limited to material which is relevant to the grounds of 
     protest or to such affirmative defenses as the executive 
     agency involved, or any intervenor supporting the agency, may 
     raise.
       ``(2) Priority.--The Board concerned shall give priority to 
     protests filed under this section over contract disputes and 
     alternative dispute services. Except as provided in paragraph 
     (3), the Board concerned shall issue its final decision 
     within 65 days after the date of the filing of the protest, 
     unless the Chairman determines that the specific and unique 
     circumstances of the protest require a longer period, in 
     which case the Board concerned shall issue such decision 
     within the longer period determined by the Chairman. An 
     amendment that adds a new ground of protest should be 
     resolved, to the maximum extent practicable, within the time 
     limits established for resolution of the initial protest.
       ``(3) Threshold.--(A) Except as provided in subparagraph 
     (B), any protest in which the anticipated value of the 
     contract award that will result from the protested 
     procurement, as estimated by the executive agency involved, 
     is less than $30,000,000 shall be considered under simplified 
     rules of procedure. Such simplified rules shall provide that 
     discovery in such protests shall be in writing only. Such 
     written discovery shall be the minimum necessary for the 
     expeditious, fair, and cost-effective resolution of the 
     protest and shall be allowed only if the Board determines 
     that the written submissions of the parties do not provide an 
     adequate basis for a fair resolution of the protest. Such 
     protests shall be decided by a single Board judge. The Board 
     concerned shall issue its final decision in each such protest 
     within 45 days after the date of the filing of the protest, 
     unless the Chairman determines that the specific and unique 
     circumstances of the protest require a longer period, in 
     which case the Board concerned shall issue such decision 
     within the longer period determined by the Chairman.
       ``(B) If the Chairman of the Board concerned determines 
     that special and unique circumstances of a protest that would 
     otherwise qualify for the simplified rules described in 
     subparagraph (A), including the complexity of a protest, 
     requires the use of full procedures as described in 
     paragraphs (1) and (2), the Chairman shall use such 
     procedures in lieu of the simplified rules described in 
     subparagraph (A).
       ``(4) Calculation of time for adr.--In calculating time for 
     purposes of paragraph (2) or (3) of this subsection, any days 
     during which proceedings are suspended for the purpose of 
     attempting to resolve the protest by alternative means of 
     dispute resolution, up to a maximum of 20 days, shall not be 
     counted.
       ``(5) Dismissal of frivolous protests.--The Board concerned 
     may dismiss a protest that the Board concerned determines--
       ``(A) is frivolous,
       ``(B) has been brought or pursued in bad faith; or
       ``(C) does not state on its face a valid basis for protest.

[[Page 1359]]

       ``(6) Payment of costs for frivolous protests.--(A) If the 
     Board concerned expressly finds that a protest or a portion 
     of a protest is frivolous or has been brought or pursued in 
     bad faith, the Board concerned shall declare that the 
     protester or other interested party who joins the protest is 
     liable to the United States for payment of the costs 
     described in subparagraph (B) unless--
       ``(i) special circumstances would make such payment unjust; 
     or
       ``(ii) the protester obtains documents or other information 
     after the protest is filed with the Board concerned that 
     establishes that the protest or a portion of the protest is 
     frivolous or has been brought or pursued in bad faith, and 
     the protester then promptly withdraws the protest or portion 
     of the protest.
       ``(B) The costs referred to in subparagraph (A) are all of 
     the costs incurred by the United States of reviewing the 
     protest, or of reviewing that portion of the protest for 
     which the finding is made, including the fees and other 
     expenses (as defined in section 2412(d)(2)(A) of title 28, 
     United States Code) incurred by the United States in 
     defending the protest.
       ``(h) Decisions and Corrective Actions on Protests.--(1) In 
     making a decision on protests filed under this section, the 
     Board concerned shall accord due weight to the goals of 
     economic and efficient procurement, and shall take due 
     account of the rule of prejudicial error.
       ``(2) If the Board concerned determines that a decision of 
     the head of the executive agency is arbitrary or capricious 
     or violates a statute or regulation, the Board concerned may 
     order the agency (or its head) to take such corrective action 
     as the Board concerned considers appropriate. Corrective 
     action includes requiring that the executive agency--
       ``(A) refrain from exercising any of its options under the 
     contract;
       ``(B) recompete the contract immediately;
       ``(C) issue a new solicitation;
       ``(D) terminate the contract;
       ``(E) award a contract consistent with the requirements of 
     such statute and regulation;
       ``(F) implement any combination of requirements under 
     subparagraphs (A), (B), (C), (D), and (E); or
       ``(G) implement such other actions as the Board concerned 
     determines necessary.
       ``(3) If the Board concerned orders corrective action after 
     the contract award, the affected contract shall be presumed 
     valid as to all goods or services delivered and accepted 
     under the contract before the corrective action was ordered.
       ``(4) Any agreement that provides for the dismissal of a 
     protest and involves a direct or indirect expenditure of 
     appropriated funds shall be submitted to the Board concerned 
     and shall be made a part of the public record (subject to any 
     protective order considered appropriate by the Board 
     concerned) before dismissal of the protest.
       ``(i) Authority To Declare Entitlement to Costs.--(1)(A) 
     Whenever the Board concerned determines that a decision of 
     the head of an executive agency is arbitrary or capricious or 
     violates a statute or regulation, it may, in accordance with 
     section 1304 of title 31, United States Code, further declare 
     an appropriate prevailing party to be entitled to the costs 
     of--
       ``(i) filing and pursuing the protest, including reasonable 
     attorneys' fees and consultant and expert witness fees, and
       ``(ii) bid and proposal preparation.
       ``(B) No party (other than a small business concern (within 
     the meaning of section 3(a) of the Small Business Act)) may 
     be declared entitled under this paragraph to costs for--
       ``(i) consultant and expert witness fees that exceed the 
     highest rate of compensation for expert witnesses paid by the 
     Federal Government, or
       ``(ii) attorneys' fees that exceed $150 per hour unless the 
     Board concerned, on a case by case basis, determines that an 
     increase in the cost of living or a special factor, such as 
     the limited availability of qualified attorneys for the 
     proceedings involved, justifies a higher fee.
       ``(2) Payment of amounts due from an agency under paragraph 
     (1) or under the terms of a settlement agreement under 
     subsection (h)(4) shall be made from the appropriation made 
     by section 1304 of title 31, United States Code, for the 
     payment of judgments. The executive agency concerned shall 
     reimburse that appropriation account out of funds available 
     for the procurement.
       ``(j) Appeals.--A final decision of the Board concerned may 
     be appealed as set forth in section 8(g)(1) of the Contract 
     Disputes Act of 1978 by the head of the executive agency 
     concerned and by any interested party, including interested 
     parties who intervene in any protest filed under this 
     section.
       ``(k) Additional Relief.--Nothing contained in this section 
     shall affect the power of the Board concerned to order any 
     additional relief which it is authorized to provide under any 
     statute or regulation.
       ``(l) Nonexclusivity of Remedies.--Nothing contained in 
     this section shall affect the right of any interested party 
     to file a protest with the contracting agency or to file an 
     action in the United States Court of Federal Claims or in a 
     United States district court.''.

     SEC. 425. APPLICABILITY TO CERTAIN CONTRACTS.

       The Office of Federal Procurement Policy Act (41 U.S.C. 401 
     et seq.), as amended by section 424, is further amended by 
     adding at the end the following:

     ``SEC. 215. APPLICABILITY TO CERTAIN CONTRACTS.

       ``(a) Contracts At or Below the Simplified Acquisition 
     Threshold.--Notwithstanding section 33 of this Act, the 
     authority conferred on the Defense Board and the Civilian 
     Board by this title is applicable to contracts in amounts not 
     greater than the simplified acquisition threshold.
       ``(b) Contracts for Commercial Items.--Notwithstanding 
     section 34 of this Act, the authority conferred on the 
     Defense Board and the Civilian Board by this title is 
     applicable to contracts for the procurement of commercial 
     items.''.
    Subtitle D--Repeal of Other Statutes Authorizing Administrative 
                                Protests

     SEC. 431. REPEALS.

       (a) GSBCA Provisions.--Subsection (f) of the Brooks 
     Automatic Data Processing Act (section 111 of the Federal 
     Property and Administrative Services Act of 1949; 40 U.S.C. 
     759) is repealed.
       (b) GAO Provisions.--(1) Subchapter V of chapter 35 of 
     title 31, United States Code (31 U.S.C. 3551-3556) is 
     repealed.
       (2) The analysis for chapter 35 of such title is amended by 
     striking out the items relating to sections 3551 through 3556 
     and the heading for subchapter V.
    Subtitle E--Transfers and Transitional, Savings, and Conforming 
                               Provisions

     SEC. 441. TRANSFER AND ALLOCATION OF APPROPRIATIONS AND 
                   PERSONNEL.

       (a) Transfers.--
       (1) Armed services and corps boards of contract appeals.--
     The personnel employed in connection with, and the assets, 
     liabilities, contracts, property, records, and unexpended 
     balance of appropriations, authorizations, allocations, and 
     other funds employed, held, used, arising from, available to, 
     or to be made available in connection with the functions 
     vested by law in the Armed Services Board of Contract Appeals 
     and the board of contract appeals of the Corps of Engineers 
     established pursuant to section 8 of the Contract Disputes 
     Act of 1978 (41 U.S.C. 607) (as in effect on the day before 
     the effective date described in section 451), shall be 
     transferred to the Department of Defense Board of Contract 
     Appeals for appropriate allocation by the Chairman of that 
     Board.
       (2) Other boards of contracts appeals.--The personnel 
     employed in connection with, and the assets, liabilities, 
     contracts, property, records, and unexpended balance of 
     appropriations, authorizations, allocations, and other funds 
     employed, held, used, arising from, available to, or to be 
     made available in connection with the functions vested by law 
     in the boards of contract appeals established pursuant to 
     section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 
     607) (as in effect on the day before the effective date 
     described in section 451) other than the Armed Services Board 
     of Contract Appeals, the board of contract appeals of the 
     Corps of Engineers, and the Postal Service Board of Contract 
     Appeals shall be transferred to the Civilian Board of 
     Contract Appeals for appropriate allocation by the Chairman 
     of that Board.
       (3) Comptroller general.--(A) One-quarter (as determined by 
     the Comptroller General) of the personnel employed in 
     connection with, and one-quarter (as determined by the 
     Comptroller General) of the assets, liabilities, contracts, 
     property, records, and unexpended balance of appropriations, 
     authorizations, allocations, and other funds employed, held, 
     used, arising from, available to, or to be made available in 
     connection with the functions vested by law in the 
     Comptroller General pursuant to subchapter V of chapter 35 of 
     title 31, United States Code (as in effect on the day before 
     the effective date described in section 451), shall be 
     transferred to the Civilian Board of Contract Appeals for 
     appropriate allocation by the Chairman of that Board.
       (B) Three-quarters (as determined by the Comptroller 
     General) of the personnel employed in connection with, and 
     three-quarters (as determined by the Comptroller General) of 
     the assets, liabilities, contracts, property, records, and 
     unexpended balance of appropriations, authorizations, 
     allocations, and other funds employed, held, used, arising 
     from, available to, or to be made available in connection 
     with the functions vested by law in the Comptroller General 
     pursuant to subchapter V of chapter 35 of title 31, United 
     States Code (as in effect on the day before the effective 
     date described in section 451), shall be transferred to the 
     Department of Defense Board of Contract Appeals for 
     appropriate allocation by the Chairman of that Board.
       (b) Effect on Personnel.--Personnel transferred pursuant to 
     this subtitle shall not be separated or reduced in 
     compensation for one year after such transfer, except for 
     cause.
       (c) Regulations.--(1) The Department of Defense Board of 
     Contract Appeals and the Civilian Board of Contract Appeals 
     shall each prescribe regulations for the release of competing 
     employees in a reduction in force that gives due effect to--
       (A) efficiency or performance ratings;
       (B) military preference; and
       (C) tenure of employment.
       (2) In prescribing the regulations, the Board concerned 
     shall provide for military preference in the same manner as 
     set forth in subchapter I of chapter 35 of title 5, United 
     States Code.

     SEC. 442. TERMINATIONS AND SAVINGS PROVISIONS.

       (a) Termination of Boards of Contract Appeals.--Effective 
     on the effective date described in section 451, the boards of 
     contract

[[Page 1360]]

     appeals established pursuant to section 8 of the Contract 
     Disputes Act of 1978 (41 U.S.C. 607) (as in effect on the day 
     before such effective date) other than the Postal Service 
     Board of Contract Appeals shall terminate.
       (b) Savings Provision for Contract Dispute Matters Pending 
     Before Boards.--(1) This title and the amendments made by 
     this title shall not affect any proceedings (other than bid 
     protests pending before the board of contract appeals of the 
     General Services Administration) pending on the effective 
     date described in section 451 before any board of contract 
     appeals terminated by subsection (a).
       (2) In the case of any such proceedings pending before the 
     Armed Services Board of Contract Appeals or the board of 
     contract appeals of the Corps of Engineers, the proceedings 
     shall be continued by the Department of Defense Board of 
     Contract Appeals, and orders which were issued in any such 
     proceeding by the Armed Services Board of Contract Appeals or 
     the board of contract appeals of the Corps of Engineers shall 
     continue in effect until modified, terminated, superseded, or 
     revoked by the Department of Defense Board of Contract 
     Appeals, by a court of competent jurisdiction, or by 
     operation of law.
       (3) In the case of any such proceedings pending before an 
     agency board of contract appeals other than the Armed 
     Services Board of Contract Appeals or the board of contract 
     appeals of the Corps of Engineers, the proceedings shall be 
     continued by the Civilian Board of Contract Appeals, and 
     orders which were issued in any such proceeding by the agency 
     board shall continue in effect until modified, terminated, 
     superseded, or revoked by the Civilian Board of Contract 
     Appeals, by a court of competent jurisdiction, or by 
     operation of law.
       (c) Bid Protest Transition Provisions.--(1) No protest may 
     be submitted to the Comptroller General pursuant to section 
     3553(a) of title 31, United States Code, or to the board of 
     contract appeals for the General Services Administration 
     pursuant to the Brooks Automatic Data Processing Act (40 
     U.S.C. 759) on or after the effective date described in 
     section 451.
       (2)(A) In the case of bid protest proceedings pending 
     before the board of contract appeals of the General Services 
     Administration on the effective date described in section 
     451--
       (i) with respect to bid protests involving procurements of 
     the Department of Defense, the Department of the Army, the 
     Department of the Navy, and the Department of the Air Force, 
     the proceedings shall be continued by the Defense Board of 
     Contract Appeals; and
       (ii) with respect to bid protests involving procurements of 
     any other executive agency (as defined by section 4(1) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 403(1)), 
     the proceedings shall be continued by the Civilian Board of 
     Contract Appeals.
       (B) The provisions repealed by section 431(a) shall 
     continue to apply to such proceedings until the Department of 
     Defense Board of Contract Appeals or the Civilian Board of 
     Contract Appeals, as the case may be, determines such 
     proceedings have been completed.
       (3)(A) In the case of bid protest proceedings pending 
     before the Comptroller General on the effective date 
     described in section 451--
       (i) with respect to bid protests involving procurements of 
     the Department of Defense, the Department of the Army, the 
     Department of the Navy, and the Department of the Air Force, 
     the proceedings shall be continued by the Defense Board of 
     Contract Appeals;
       (ii) with respect to bid protests involving procurements of 
     any other executive agency (as defined by section 4(1) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 403(1)), 
     the proceedings shall be continued by the Civilian Board of 
     Contract Appeals; and
       (iii) with respect to bid protests involving procurements 
     of an entity that is not an executive agency, the proceedings 
     shall be continued by the Comptroller General.
       (B) The provisions repealed by section 431(b) shall 
     continue to apply to such bid protest proceedings until the 
     Department of Defense Board of Contract Appeals, the Civilian 
     Board of Contract Appeals, or the Comptroller General, as the 
     case may be, determines that such proceedings have been 
     completed.

     SEC. 443. CONTRACT DISPUTES AUTHORITY OF BOARDS.

       (a) Section 2 of the Contract Disputes Act of 1978 (41 
     U.S.C. 601) is amended--
       (1) in paragraph (2), by striking out ``, the United States 
     Postal Service, and the Postal Rate Commission'';
       (2) by amending paragraph (6) to read as follows:
       ``(6) the term `Defense Board' means the Department of 
     Defense Board of Contract Appeals established under section 
     8(a) of this Act;'';
       (3) by redesignating paragraph (7) as paragraph (8); and
       (4) by inserting after paragraph (6) the following new 
     paragraph (7):
       ``(7) the term `Civilian Board' means the Civilian Board of 
     Contract Appeals established under section 8(b) of this Act; 
     and''.
       (b) Section 6(c)(6) of the Contract Disputes Act of 1978 
     (41 U.S.C. 605(c)(6)) is amended--
       (1) by striking out ``court or an agency board of contract 
     appeals'' and inserting in lieu thereof ``court, the Defense 
     Board, or the Civilian Board'';
       (2) by striking out ``an agency board of contract appeals'' 
     in the third sentence and inserting in lieu thereof ``the 
     Defense Board or the Civilian Board''; and
       (3) by striking out ``agency board'' and inserting in lieu 
     thereof ``the Board concerned''.
       (c) Section 7 of the Contract Disputes Act of 1978 (41 
     U.S.C. 606) is amended by striking out ``an agency board of 
     contract appeals'' and inserting in lieu thereof ``the 
     Defense Board or the Civilian Board''.
       (d) Section 8 of the Contract Disputes Act of 1978 (41 
     U.S.C. 607), as amended by section 411, is further amended--
       (1) by amending the heading to read as follows:

          ``defense and civilian boards of contract appeals'';

       (2) by striking out subsection (c);
       (3) in subsection (d)--
       (A) by striking out the first sentence and inserting in 
     lieu thereof the following:
     ``The Defense Board shall have 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, or the Department of the Air Force 
     relative to a contract made by that department. The Civilian 
     Board shall have 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 United States Postal Service, or the Postal Rate 
     Commission) relative to a contract made by that agency.''; 
     and
       (B) in the second sentence, by striking out ``the agency 
     board'' and inserting in lieu thereof ``the Board 
     concerned'';
       (4) in subsection (e), by striking out ``An agency board 
     shall provide'' and inserting in lieu thereof ``The Defense 
     Board and the Civilian Board shall each provide,'';
       (5) in subsection (f), by striking out ``each agency 
     board'' and inserting in lieu thereof ``the Defense Board and 
     the Civilian Board'';
       (6) in subsection (g)--
       (A) in the first sentence of paragraph (1), by striking out 
     ``an agency board of contract appeals'' and inserting in lieu 
     thereof ``the Defense Board or the Civilian Board, as the 
     case may be,'';
       (B) by striking out paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2); and
       (7) by striking out subsection (h) and inserting in lieu 
     thereof the following:
       ``(h) There is established an agency board of contract 
     appeals to be known as the `Postal Service Board of Contract 
     Appeals'. Such board shall have jurisdiction to decide any 
     appeal from a decision of a contracting officer of the United 
     States Postal Service or the Postal Rate Commission relative 
     to a contract made by either agency. Such board shall consist 
     of judges appointed by the Postmaster General who shall meet 
     the qualifications of and serve in the same manner as judges 
     of the Civilian Board of Contract Appeals. This Act and title 
     II of the Office of Federal Procurement Policy Act shall 
     apply to contract disputes before the Postal Service Board of 
     Contract Appeals in the same manner as they apply to contract 
     disputes before the Civilian Board.''; and
       (8) by striking out subsection (i).
       (e) Section 9 of the Contract Disputes Act of 1978 (41 
     U.S.C. 608) is amended--
       (1) in subsection (a), by striking out ``each agency 
     board'' and inserting in lieu thereof ``the Defense Board and 
     the Civilian Board''; and
       (2) in subsection (b), by striking out ``the agency board'' 
     and inserting in lieu thereof ``the Board concerned''.
       (f) Section 10 of the Contract Disputes Act of 1978 (41 
     U.S.C. 609) is amended--
       (1) in subsection (a)--
       (A) in the first sentence of paragraph (1)--
       (i) by striking out ``Except as provided in paragraph (2), 
     and in'' and inserting in lieu thereof ``In''; and
       (ii) by striking out ``an agency board'' and inserting in 
     lieu thereof ``the Defense Board or the Civilian Board'';
       (B) by striking out paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2), and in 
     that paragraph by striking out ``or (2)'';
       (2) in subsection (b)--
       (A) by striking out ``any agency board'' and inserting in 
     lieu thereof ``the Defense Board or the Civilian Board''; and
       (B) by striking out ``the agency board'' and inserting in 
     lieu thereof ``the Board concerned'';
       (3) in subsection (c)--
       (A) by striking out ``an agency board'' and inserting in 
     lieu of each ``the Defense Board or the Civilian Board''; and
       (B) by striking out ``the agency board'' and inserting in 
     lieu thereof ``the Board concerned''; and
       (4) in subsection (d)--
       (A) by striking out ``one or more agency boards'' and 
     inserting in lieu thereof ``the Defense Board or the Civilian 
     Board (or both)''; and
       (B) by striking out ``or among the agency boards involved'' 
     and inserting in lieu thereof ``one or both of the Boards''.
       (g) Section 11 of the Contract Disputes Act of 1978 (41 
     U.S.C. 610) is amended--
       (1) in the first sentence, by striking out ``an agency 
     board of contract appeals'' and inserting in lieu thereof 
     ``the Defense Board or the Civilian Board''; and
       (2) in the second sentence, by striking out ``the agency 
     board through the Attorney General; or upon application by 
     the board of contract appeals of the Tennessee Valley 
     Authority'' and inserting in lieu thereof ``the Defense Board 
     or the Civilian Board''.
       (h) Section 13 of the Contract Disputes Act of 1978 (41 
     U.S.C. 612) is amended--

[[Page 1361]]

       (1) in subsection (b), by striking out ``an agency board of 
     contract appeals'' and inserting in lieu thereof ``the 
     Defense Board or the Civilian Board''; and
       (2) in subsection (d)(2), by striking out ``by the board of 
     contract appeals for'' and inserting in lieu thereof ``by the 
     Defense Board or the Civilian Board from''.

     SEC. 444. REFERENCES TO AGENCY BOARDS OF CONTRACT APPEALS.

       (a) Defense Board.--Any reference to the Armed Services 
     Board of Contract Appeals or the board of contract appeals of 
     the Corps of Engineers in any provision of law or in any 
     rule, regulation, or other paper of the United States shall 
     be treated as referring to the Department of Defense Board of 
     Contract Appeals.
       (b) Civilian Board.--Any reference to an agency board of 
     contract appeals other than the Armed Services Board of 
     Contract Appeals, the board of contract appeals of the Corps 
     of Engineers, or the Postal Service Board of Contract Appeals 
     in any provision of law or in any rule, regulation, or other 
     paper of the United States shall be treated as referring to 
     the Civilian Board of Contract Appeals.

     SEC. 445. CONFORMING AMENDMENTS.

       (a) Title 5.--Section 5372a of title 5, United States Code, 
     is amended--
       (1) in subsection (a)(1), by striking out ``an agency board 
     of contract appeals appointed under section 8 of the Contract 
     Disputes Act of 1978'' and inserting in lieu thereof ``the 
     Department of Defense Board of Contract Appeals or the 
     Civilian Board of Contract Appeals appointed under section 
     202 of the Office of Federal Procurement Policy Act or the 
     Postal Service Board of Contract Appeals appointed under 
     section 8(h) of the Contract Disputes Act of 1978''; and
       (2) in subsection (a)(2), by striking out ``an agency board 
     of contract appeals'' and inserting in lieu thereof ``the 
     Department of Defense Board of Contract Appeals, the Civilian 
     Board of Contract Appeals, or the Postal Service Board of 
     Contract Appeals''.
       (b) Title 10.--(1) Section 2305(e) of title 10, United 
     States Code, is amended--
       (A) in paragraph (1), by striking out ``subchapter V of 
     chapter 35 of title 31'' and inserting in lieu thereof 
     ``title II of the Office of Federal Procurement Policy Act''; 
     and
       (B) by striking out paragraph (3).
       (2) Section 2305(f) of such title is amended--
       (A) in paragraph (1), by striking out ``subparagraphs (A) 
     through (F) of subsection (b)(1) of section 3554 of title 
     31'' and inserting in lieu thereof ``section 214(h)(2) of the 
     Office of Federal Procurement Policy Act''; and
       (B) in paragraph (2), by striking out ``paragraph (1) of 
     section 3554(c) of title 31 within the limits referred to in 
     paragraph (2)'' and inserting in lieu thereof ``subparagraph 
     (A) of section 214(i)(1) of the Office of Federal Procurement 
     Policy Act within the limits referred to in subparagraph 
     (B)''.
       (c) Federal Property and Administrative Services Act of 
     1949.--(1) Section 303B(j) (as redesignated by section 
     104(b)(2)) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253b(h)) is amended--
       (A) in paragraph (1), by striking out ``subchapter V of 
     chapter 35 of title 31, United States Code'' and inserting in 
     lieu thereof ``title II of the Office of Federal Procurement 
     Policy Act''; and
       (B) by striking out paragraph (3).
       (2) Section 303B(k) (as redesignated by section 104(b)(2)) 
     of such Act (41 U.S.C. 253b(i)) is amended--
       (A) in paragraph (1), by striking out ``in subparagraphs 
     (A) through (F) of subsection (b)(1) of section 3554 of title 
     31, United States Code'' and inserting in lieu thereof 
     ``section 214(h)(2) of the Office of Federal Procurement 
     Policy Act''; and
       (B) in paragraph (2), by striking out ``paragraph (1) of 
     section 3554(c) of such title within the limits referred to 
     in paragraph (2)'' and inserting in lieu thereof 
     ``subparagraph (A) of section 214(i)(1) of the Office of 
     Federal Procurement Policy Act within the limits referred to 
     in subparagraph (B)''.
       (d) Office of Federal Procurement Policy Act.--The table of 
     contents for the Office of Federal Procurement Policy Act 
     (contained in section 1(b)) is amended--
       (1) by inserting the following before the item relating to 
     section 1:

         ``TITLE I--FEDERAL PROCUREMENT POLICY GENERALLY''; and

       (2) by adding at the end the following:

                     ``TITLE II--DISPUTE RESOLUTION

                    ``Subtitle A--General Provisions

``Sec. 201. Definitions.
``Sec. 202. Membership.
``Sec. 203. Chairman.
``Sec. 204. Rulemaking authority.
``Sec. 205. Authorization of appropriations.

``Subtitle B--Functions of the Defense and Civilian Boards of Contract 
                                Appeals

``Sec. 211. Alternative dispute resolution services.
``Sec. 212. Alternative dispute resolution of disputes and protests 
              submitted to Boards.
``Sec. 213. Contract disputes.
``Sec. 214. Protests.
``Sec. 215. Applicability to certain contracts.''.
  Subtitle F--Effective Date; Regulations and Appointment of Chairmen

     SEC. 451. EFFECTIVE DATE.

       Title II of the Office of Federal Procurement Policy Act, 
     as added by this title, and the amendments and repeals made 
     by this title shall take effect 1 year after the date of the 
     enactment of this Act.

     SEC. 452. REGULATIONS.

       (a) Regulations Regarding Protests and Claims.--Not later 
     than 1 year after the date of the enactment of this Act, the 
     Chairman of the Armed Services Board of Contract Appeals and 
     the Chairman of the General Services Board of Contract 
     Appeals, in consultation with the Comptroller General with 
     respect to protests, shall jointly issue--
       (1) such procedural rules and regulations as are necessary 
     to the exercise of the functions of the Department of Defense 
     Board of Contract Appeals and the Civilian Board of Contract 
     Appeals under sections 213 and 214 of the Office of Federal 
     Procurement Policy Act (as added by this title); and
       (2) statements of policy of general applicability with 
     respect to such functions.
       (b) Regulations Regarding Appointment of Judges.--Not later 
     than 1 year after the date of the enactment of this Act--
       (1) the Chairman of the Armed Services Board of Contract 
     Appeals shall issue rules governing the establishment and 
     maintenance of a register of eligible applicants and the 
     selection of judges for the Department of Defense Board of 
     Contract Appeals; and
       (2) the Chairman of the General Services Board of Contract 
     Appeals shall issue rules governing the establishment and 
     maintenance of a register of eligible applicants and the 
     selection of judges for the Civilian Board of Contract 
     Appeals.

     SEC. 453. APPOINTMENT OF CHAIRMEN OF DEFENSE BOARD AND 
                   CIVILIAN BOARD.

       Notwithstanding section 451, not later than 1 year after 
     the date of the enactment of this Act--
       (1) the Secretary of Defense shall appoint the Chairman of 
     the Department of Defense Board of Contract Appeals; and
       (2) the Administrator of General Services shall appoint the 
     Chairman of the Civilian Board of Contract Appeals.
              TITLE V--EFFECTIVE DATES AND IMPLEMENTATION

     SEC. 501. EFFECTIVE DATE AND APPLICABILITY.

       (a) Effective Date.--Except as otherwise provided in this 
     Act, this Act and the amendments made by this Act shall take 
     effect on the date of the enactment of this Act.
       (b) Applicability of Amendments.--(1) An amendment made by 
     this Act shall apply, in the manner prescribed in the final 
     regulations promulgated pursuant to section 502 to implement 
     such amendment, with respect to any solicitation that is 
     issued, any unsolicited proposal that is received, and any 
     contract entered into pursuant to such a solicitation or 
     proposal, on or after the date described in paragraph (3).
       (2) An amendment made by this Act shall also apply, to the 
     extent and in the manner prescribed in the final regulations 
     promulgated pursuant to section 502 to implement such 
     amendment, with respect to any matter related to--
       (A) a contract that is in effect on the date described in 
     paragraph (3);
       (B) an offer under consideration on the date described in 
     paragraph (3); or
       (C) any other proceeding or action that is ongoing on the 
     date described in paragraph (3).
       (3) The date referred to in paragraphs (1) and (2) is the 
     date specified in such final regulations. The date so 
     specified shall be October 1, 1996, or any earlier date that 
     is not within 30 days after the date on which such final 
     regulations are published.

     SEC. 502. IMPLEMENTING REGULATIONS.

       (a) Proposed Revisions.--Proposed revisions to the Federal 
     Acquisition Regulation and such other proposed regulations 
     (or revisions to existing regulations) as may be necessary to 
     implement this Act shall be published in the Federal Register 
     not later than 210 days after the date of the enactment of 
     this Act.
       (b) Public Comment.--The proposed regulations described in 
     subsection (a) shall be made available for public comment for 
     a period of not less than 60 days.
       (c) Final Regulations.--Final regulations shall be 
     published in the Federal Register not later than 330 days 
     after the date of enactment of this Act.
       (d) Modifications.--Final regulations promulgated pursuant 
     to this section to implement an amendment made by this Act 
     may provide for modification of an existing contract without 
     consideration upon the request of the contractor.
       (e) Savings Provisions.--(1) Nothing in this Act shall be 
     construed to affect the validity of any action taken or any 
     contract entered into before the date specified in the 
     regulations pursuant to section 501(b)(3) except to the 
     extent and in the manner prescribed in such regulations.
       (2) Except as specifically provided in this Act, nothing in 
     this Act shall be construed to require the renegotiation or 
     modification of contracts in existence on the date of the 
     enactment of this Act.
       (3) Except as otherwise provided in this Act, a law amended 
     by this Act shall continue to be applied according to the 
     provisions thereof as such law was in effect on the day 
     before the date of the enactment of this Act until--
       (A) the date specified in final regulations implementing 
     the amendment of that law (as promulgated pursuant to this 
     section); or
       (B) if no such date is specified in regulations, October 1, 
     1996.

  The bill, as amended, was ordered to be engrossed and read a third 
time, was read a third time by title.

[[Page 1362]]

  The question being put, viva voce,
  Will the House pass said bill?
  The SPEAKER pro tempore, Mr. DIAZ-BALART, announced that the yeas had 
it.
  Mr. CLINGER demanded a recorded vote on passage of said bill, which 
demand was supported by one-fifth of a quorum, so a recorded vote was 
ordered.
  The vote was taken by electronic device.

It was decided in the

Yeas

423

affirmative

Nays

0
```