II 

118TH CONGRESS 

2D SESSION S. 4066 

To improve Federal technology procurement, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 22, 2024 

Mr. PETERS (for himself and Mr. CRUZ) introduced the following bill; which 

was read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

A BILL 

To improve Federal technology procurement, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Improvement 

5 in Technology Procurement Act’’ or the ‘‘FIT Procure6 ment Act’’. 

7 SEC. 2. FINDINGS. 

8 Congress makes the following findings: 

9 (1) The Government Accountability Office 

10 (GAO) has conducted a trend analysis of GovernVerDate Sep 11 2014 22:35 Apr 08, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066

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1 ment-wide contracting for each of the last several 

2 fiscal years. These analyses show that the Federal 

3 dollars obligated through contracts has been steadily 

4 increasing. 

5 (2) Contract spending accounts for more than 

6 80 percent of the Federal information technology 

7 budget. 

8 (3) Spending on information security, software, 

9 cloud computing, data center solutions and services, 

10 software as a service, and artificial intelligence tech11 nologies is projected to grow significantly. 

12 (4) Rapid technological developments and in13 creased Government demand create a need for a 

14 Federal acquisition workforce with an understanding 

15 of technology and related procurement consider16 ations. 

17 (5) Federal agencies are challenged to shorten 

18 the procurement cycle to meet agency technology re19 quirements. Technology acquired through procure20 ments that take years from requirements develop21 ment to implementation may be obsolete by the time 

22 it is fielded. 

23 (6) While Federal contracting dollars are in24 creasing year over year, and the number of new 

25 business applications filed is at an all-time high, the 


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1 number of Federal contractors receiving contract 

2 awards is shrinking. This trend could impair the 

3 Federal Government’s access to innovative commer4 cial technologies. 

5 SEC. 3. DEFINITIONS. 

6 In this Act: 

7 (1) ACQUISITION WORKFORCE.—The term ‘‘ac8 quisition workforce’’ means employees of an execu9 tive agency who are responsible for procurement, 

10 contracting, program or project management that 

11 involves the performance of acquisition-related func12 tions, or others as designated by the Chief Acquisi13 tion Officer, senior procurement executive, or head 

14 of the contracting activity. 

15 (2) ADMINISTRATOR.—The term ‘‘Adminis16 trator’’ means the Administrator for Federal Pro17 curement Policy. 

18 (3) CROSS-FUNCTIONAL.—The term ‘‘cross19 functional’’ means a structure in which individuals 

20 with different functional expertise or from different 

21 areas of an organization work together as a team. 

22 (4) EXECUTIVE AGENCY.—The term ‘‘executive 

23 agency’’ has the meaning given the term in section 

24 133 of title 41, United States Code. 


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1 (5) EXPERIENTIAL LEARNING.—The term ‘‘ex2 periential learning’’ means on-the-job experiences or 

3 simulations that serve to enhance workforce profes4 sional skills. 

5 (6) INFORMATION AND COMMUNICATIONS

6 TECHNOLOGY.—The term ‘‘information and commu7 nications technology’’— 

8 (A) has the meaning given the term in sec9 tion 4713 of title 41, United States Code; and 

10 (B) includes information and communica11 tions technologies covered by definitions con12 tained in the Federal Acquisition Regulation, 

13 including definitions added after the date of the 

14 enactment of this Act by the Federal Acquisi15 tion Regulatory Council pursuant to notice and 

16 comment. 

17 (7) RELEVANT COMMITTEES OF CONGRESS.— 

18 The term ‘‘relevant committees of Congress’’ means 

19 the Committee on Homeland Security and Govern20 mental Affairs of the Senate and the Committee on 

21 Oversight and Accountability of the House of Rep22 resentatives. 

23 SEC. 4. ACQUISITION WORKFORCE. 

24 (a) EXPERIENTIAL LEARNING.—Not later than 18 

25 months after the date of the enactment of this Act, the 


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1 Federal Acquisition Institute shall incorporate experiential 

2 learning into the Federal Credentials Program, the Fed3 eral Acquisition Certification-Contracting Officer’s Rep4 resentative (FAC-COR) Program, and the Federal Acqui5 sition Certification for Program and Project Managers 

6 (FAC-P/PM) Program, or any successor programs. 

7 (b) TRAINING ON INFORMATION AND COMMUNICA8 TIONS TECHNOLOGY ACQUISITION.— 

9 (1) IN GENERAL.—Not later than 18 months 

10 after the date of the enactment of this Act, the Fed11 eral Acquisition Institute, in coordination with the 

12 Administrator, the Administrator of General Serv13 ices, the Federal Chief Information Officer, the 

14 Chief Information Officers Council, and the United 

15 States Digital Service, and in consultation with oth16 ers as determined to be appropriate by the Director 

17 of the Federal Acquisition Institute, shall develop 

18 and implement or otherwise provide a cross-func19 tional information and communications technology 

20 acquisition training program for acquisition work21 force members involved in acquiring information and 

22 communications technology. The training shall— 

23 (A) include learning objectives related to 

24 market research, communicating with industry 

25 and industry perspectives on the procurement 


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1 process, including how investment decisions are 

2 impacted by Government communication and 

3 engagement, developing requirements, acquisi4 tion planning, best practices for developing and 

5 executing outcome-based contracts, and source 

6 selection strategy, evaluating proposals, and 

7 awarding and administering contracts for infor8 mation and communications technology; 

9 (B) include learning objectives that provide 

10 a basic understanding of key technologies Fed11 eral agencies need, such as cloud computing, ar12 tificial intelligence and artificial intelligence-en13 abled applications, and cybersecurity solutions; 

14 (C) include learning objectives that encour15 age the use of commercial or commercially 

16 available off-the-shelf (COTS) technologies to 

17 the greatest extent practicable; 

18 (D) include case studies of lessons learned 

19 from Federal information and communications 

20 technology procurements and contracts, and re21 lated matters as deemed relevant by the Direc22 tor of the Federal Acquisition Institute; 

23 (E) include experiential learning opportu24 nities, and opportunities to practice acquisition 

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1 bers with varied relevant domain expertise to 

2 complete acquisition-related tasks, including 

3 tasks with accelerated timelines; 

4 (F) include continuous learning rec5 ommendations and resources to keep the skills 

6 of acquisition workforce members current, in7 cluding tools that help adopt or adapt the use 

8 of innovative acquisition practices or other flexi9 ble business practices commonly used in com10 mercial buys; 

11 (G) be made available to acquisition work12 force members designated by a Chief Acquisi13 tion Officer, senior procurement executive, or 

14 head of the contracting activity to participate in 

15 the training program; and 

16 (H) inform executive agencies about 

17 streamlined and alternative procurement meth18 ods for procurement of information and com19 munications technology, including— 

20 (i) simplified procedures for certain 

21 commercial products and commercial serv22 ices in accordance with subpart 13.5 of the 

23 Federal Acquisition Regulation, prize com24 petitions under the America COMPETES 

25 Reauthorization Act of 2010 (Public Law 


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1 111–358), commercial solutions opening 

2 authorities as provided in section 5 of this 

3 Act or under separate authority, competi4 tive programs that encourage businesses to 

5 engage in Federal research or research and 

6 development with the potential for com7 mercialization, and joint venture partner8 ships; 

9 (ii) innovative procurement techniques 

10 designed to streamline the procurement 

11 process and lower barriers to entry, such 

12 as use of oral presentations and product 

13 demonstrations instead of lengthy written 

14 proposals, appropriately leveraging per15 formance and outcomes-based contracting, 

16 and other techniques discussed on the 

17 Periodic Table of Acquisition Innovations 

18 or other similar successor knowledge man19 agement portals; and 

20 (iii) information on appropriate use, 

21 examples and templates, and any other in22 formation determined relevant by the Ad23 ministrator to assist contracting officers 

24 and other members of the acquisition 


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1 workforce in using the procedures de2 scribed in clauses (i) and (ii). 

3 (2) REPORT.—Not later than 2 years after the 

4 date of the enactment of this Act, the Director of 

5 the Federal Acquisition Institute shall provide to the 

6 relevant committees of Congress, the Chief Acquisi7 tion Officers Council, and the Chief Information Of8 ficers Council— 

9 (A) a report on the Director’s progress in 

10 developing and implementing or otherwise pro11 viding the information and communications 

12 technology acquisition training described in 

13 paragraph (1); and 

14 (B) a list of any congressionally mandated 

15 acquisition training that the Director deter16 mines to be outdated or no longer necessary for 

17 other reasons. 

18 (3) DURATION.—The training program shall be 

19 updated as appropriate as technology advances, but 

20 at least every 2 years after implementation, and of21 fered for a minimum of 7 years following the date 

22 of implementation of the training program. 

23 (c) ACQUISITION WORKFORCE TRAINING FUND.— 

24 (1) FINDING.—Congress finds that the Acquisi25 tion Workforce Training Fund should be utilized in 


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1 order to ensure that the Federal acquisition work2 force— 

3 (A) continues to adapt to fundamental 

4 changes in Federal Government acquisition of 

5 property and services; and 

6 (B) acquires new skills and knowledge to 

7 enable it to contribute effectively in the chang8 ing environment of the 21st century. 

9 (2) INCREASED CREDITS TO FUND.—Section 

10 1703(i)(3) of title 41, United States Code, is amend11 ed by striking ‘‘Five percent’’ and inserting ‘‘Seven 

12 and a half percent’’. 

13 (d) HARMONIZATION OF ACQUISITION WORKFORCE

14 TRAINING REQUIREMENTS.—The responsibility for the re15 quirement in subsection (b)(1) of section 2 of the AI 

16 Training Act (Public Law 117–207; 41 U.S.C. 1703 note) 

17 is reassigned from the Director of the Office of Manage18 ment and Budget to the Administrator of General Serv19 ices. 

20 SEC. 5. INNOVATIVE PROCUREMENT METHODS. 

21 (a) EXPANSION OF COMMERCIAL SOLUTIONS OPEN22 ING AUTHORITY.—Section 880 of the National Defense 

23 Authorization Act for Fiscal Year 2017 (Public Law 114– 

24 328; 41 U.S.C. 3301 note) is amended— 


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1 (1) in the section heading, by striking ‘‘PILOT

2 PROGRAMS FOR AUTHORITY TO ACQUIRE IN3 NOVATIVE COMMERCIAL PRODUCTS’’ and insert4 ing ‘‘PROGRAMS FOR AUTHORITY TO ACQUIRE

5 INNOVATIVE COMMERCIAL PRODUCTS AND

6 COMMERCIAL SERVICES’’; 

7 (2) in subsection (a)— 

8 (A) in paragraph (1), by inserting ‘‘and 

9 commercial services’’ after ‘‘commercial prod10 ucts’’; 

11 (B) in paragraph (2), by adding at the end 

12 the following new subparagraph: 

13 ‘‘(C) The head of an executive agency ap14 proved for the program, on a temporary or per15 manent basis, by the Director of the Office of 

16 Management and Budget.’’; and 

17 (C) in paragraph (3), by adding at the end 

18 the following new subparagraph: 

19 ‘‘(C) An executive agency approved for the 

20 program by the Director of the Office of Man21 agement and Budget.’’; 

22 (3) by amending subsection (d) to read as fol23 lows: 

24 ‘‘(d) GUIDANCE.—The head of an agency shall issue 

25 guidance for the implementation of the program under 


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1 this section within that agency. Such guidance shall be 

2 issued in consultation with the Office of Management and 

3 Budget and shall be posted for access by the public. The 

4 guidance shall also include requirements for each general 

5 solicitation to be posted publicly through a means that 

6 provides access to the notice of general solicitation 

7 through the System for Award Management or subsequent 

8 Government-wide point of entry, with classified solicita9 tions posted to the appropriate Government portal.’’; 

10 (4) by amending subsection (e) to read as fol11 lows: 

12 ‘‘(e) REPORTING AND DATA COLLECTION.—The 

13 head of an agency shall report information on contracts 

14 made using procedures under this section to the Office of 

15 Management and Budget as determined by the Director 

16 of the Office of Management and Budget. The Adminis17 trator for Federal Procurement Policy shall collect and 

18 analyze data on the use of the authority under this section 

19 for the purposes of— 

20 ‘‘(1) developing and sharing best practices; 

21 ‘‘(2) gathering information on the implementa22 tion of the authority and related policy issues; and 

23 ‘‘(3) informing the Committee on Homeland Se24 curity and Governmental Affairs of the Senate and 

25 the Committee on Oversight and Accountability of 


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1 the House of Representatives on the use of the au2 thority.’’; 

3 (5) in subsection (f)— 

4 (A) in paragraph (1)(B), by striking ‘‘; 

5 and’’ and inserting a semicolon; 

6 (B) by redesignating paragraph (2) as 

7 paragraph (3); and 

8 (C) by inserting after paragraph (1) the 

9 following new paragraph: 

10 ‘‘(2) the term ‘executive agency’ has the mean11 ing given the term in section 133 of title 41, United 

12 States Code; and’’; 

13 (6) by striking subsection (g); and 

14 (7) by striking ‘‘pilot’’ each place it appears. 

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

16 in section 2(b) of such Act and the table of contents pre17 ceding subtitle A of title VIII of such Act are each amend18 ed by striking the item relating to section 880 and insert19 ing the following new item: 

‘‘Sec. 880. Programs for authority to acquire innovative commercial products, 

commercial technologies, and commercial services using general 

solicitation competitive procedures.’’. 

20 (c) INCREASE IN SIMPLIFIED ACQUISITION THRESH21 OLD.— 

22 (1) FINDING.—Congress finds that the thresh23 old under which agencies may use simplified acquisi24 tion procedures to reduce costs, improve opportuniVerDate Sep 11 2014 22:35 Apr 08, 2024 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S4066.IS S4066

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1 ties for qualified businesses, promote efficiency and 

2 economy, and avoid unnecessary burdens for agen3 cies and their contractors should be updated. 

4 (2) AMENDMENT.— 

5 (A) IN GENERAL.—Section 134 of title 41, 

6 United States Code, is amended by striking 

7 ‘‘$250,000’’ and inserting ‘‘$500,000’’. 

8 (B) AUTHORITY TO APPLY PROVISIONS

9 BELOW THE THRESHOLD.—The Federal Acqui10 sition Regulatory Council may apply a provision 

11 that would not otherwise be applicable below 

12 the threshold as amended by subparagraph (A) 

13 upon a written determination that it would not 

14 be in the best interest of the Federal Govern15 ment to exempt contracts and subcontracts in 

16 amounts not greater than such amended thresh17 old from such provision, such as for national se18 curity reasons. 

19 (d) MULTIPLE AWARD SCHEDULE PROGRAM COM20 PETITIVE PROCEDURES.— 

21 (1) FINDING.—Congress finds that the competi22 tion standard established by the Administrator of 

23 General Services for the multiple award schedule 

24 program of the General Services Administration 

25 should be updated and made consistent with the 


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1 competition standard for other procurement meth2 ods, such as simplified acquisitions and negotiated 

3 procurements. The term ‘‘best value’’ is defined in 

4 the Federal Acquisition Regulation as meaning the 

5 expected outcome of an acquisition that, in the Gov6 ernment’s estimation, provides the greatest overall 

7 benefit in response to the requirement. 

8 (2) AMENDMENTS.— 

9 (A) CIVILIAN CONTRACTS.—Section 

10 152(3)(B) of title 41, United States Code, is 

11 amended to read as follows: 

12 ‘‘(B) contracts and orders under such pro13 gram result in the award of best value products 

14 and services for the Federal Government;’’. 

15 (B) DEFENSE CONTRACTS.—Section 

16 3012(3)(B) of title 10, United States Code, is 

17 amended to read as follows: 

18 ‘‘(B) contracts and orders under such pro19 gram result in the award of best value products 

20 and services for the Federal Government;’’. 

21 (3) GUIDANCE.—The Federal Acquisition Regu22 latory Council shall provide guidance to Federal 

23 agencies on appropriate use of the best value com24 petition standard for the multiple award schedule 

25 program as part of the implementing regulations 


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1 promulgated in connection with the amendments 

2 made by paragraph (2). 

3 (e) ADVANCES FOR COMMERCIAL TECHNOLOGY SUB4 SCRIPTIONS AND TENANCY.— 

5 (1) FINDING.—Congress finds that the author6 ity to make advance payments should be updated for 

7 purposes of enabling the most cost-effective acquisi8 tion of cloud computing, data center solutions and 

9 services, and other information and communications 

10 technology acquired on a subscription, reservation, 

11 or tenancy basis. 

12 (2) AUTHORITY TO PAY ADVANCES.—Section 

13 3324(d) of title 31, United States Code, is amend14 ed— 

15 (A) in paragraph (1)(C), by striking ‘‘; 

16 and’’ and inserting a semicolon; 

17 (B) in paragraph (2)— 

18 (i) by inserting ‘‘or commercially 

19 available content’’ after ‘‘publication’’; and 

20 (ii) by striking the period at the end 

21 and inserting ‘‘; and’’; and 

22 (C) by adding at the end the following new 

23 paragraph: 

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1 ancy, which means the sharing of computing re2 sources in a private or public environment, including 

3 cloud environments, for which the ordering agency 

4 defines appropriate access and security standards.’’. 

5 SEC. 6. INCREASING COMPETITION IN FEDERAL CON6 TRACTING. 

7 (a) USE OF PAST PERFORMANCE.—Not later than 

8 1 year after the date of the enactment of this Act, the 

9 Administrator shall issue guidance, including examples 

10 and templates where appropriate, on— 

11 (1) when a wider range of projects, such as 

12 commercial or non-government, as well as Govern13 ment projects, should be accepted as relevant past 

14 performance, in order to have increased competition 

15 among eligible firms with capability to perform a re16 quirement, such as a requirement without much 

17 precedent; 

18 (2) a means by which an agency may validate 

19 non-government past performance references, such 

20 as by requiring an official of an entity providing 

21 past performance references to attest to their au22 thenticity and by providing verifiable contact infor23 mation for the references; and 

24 (3) use of alternative evaluation methods other 

25 than past performance that may be appropriate for 


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1 a requirement without much precedent, such as dem2 onstrations and testing of technologies as part of the 

3 proposal process. 

4 (b) ENSURING A CAPABLE FEDERAL VENDOR

5 BASE.— 

6 (1) WORKING GROUP.—Not later than 90 days 

7 after the date of the enactment of this Act, the Ad8 ministrator shall convene a working group or an ap9 propriate existing body (in this section referred to as 

10 the ‘‘working group’’), to make recommendations to 

11 address the Federal Government’s shrinking vendor 

12 base and related matters. 

13 (2) MEMBERSHIP.—The working group con14 vened under paragraph (1) shall be chaired by the 

15 Administrator or a designee of the Administrator 

16 and include, at a minimum, representatives from the 

17 following departments and agencies: 

18 (A) The General Services Administration. 

19 (B) The Department of Homeland Secu20 rity. 

21 (C) The Department of Commerce. 

22 (D) The Department of Defense. 

23 (E) The Department of Health and 

24 Human Services. 

25 (F) The Small Business Administration. 


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1 (G) Any other agencies or organizations as 

2 determined appropriate by the Administrator. 

3 (3) CONSULTATION.—The working group shall 

4 obtain input from the public, including from the 

5 APEX Accelerators program (formerly known as 

6 Procurement Technical Assistance Center (PTAC) 

7 network) and other contractor representatives, to 

8 identify Federal procurement policies and regula9 tions that are obsolete, overly burdensome or restric10 tive, not adequately harmonized, or otherwise serve 

11 to create barriers to participation in Federal con12 tracting or unnecessarily increase bid and proposal 

13 costs. 

14 (4) EXAMINATION OF ACTIONS.—The working 

15 group shall consider the input obtained under para16 graph (3) and any other information determined to 

17 be relevant by the working group to identify legisla18 tive, regulatory, and other actions to remove barriers 

19 to qualified vendors in the procurement process, in 

20 order to build the Federal vendor base, increase 

21 competition, and address related matters. 

22 (5) IMPLEMENTATION.—Not later than 2 years 

23 after the date of the enactment of this Act, the Ad24 ministrator shall, in consultation with the Federal 

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1 tion Officers Council, the working group, and other 

2 agencies as appropriate, implement the regulatory 

3 and other non-legislative actions identified under 

4 paragraph (4), as determined necessary by the Ad5 ministrator, to remove barriers to entry for those 

6 seeking to participate in Federal Government pro7 curement. 

8 (6) BRIEFING.—Not later than 2 years after 

9 the date of the enactment of this Act, the Adminis10 trator shall brief the relevant committees of Con11 gress on the legislative actions identified under para12 graph (4), and the actions implemented under para13 graph (5). 

14 SEC. 7. INCENTIVIZING EMPLOYEE STOCK OWNERSHIP 

15 PLANS FOR BUSINESS GROWTH. 

16 (a) PILOT PROGRAM TO USE NONCOMPETITIVE PRO17 CEDURES FOR CERTAIN FOLLOW-ON CONTRACTS TO

18 QUALIFIED BUSINESSES WHOLLY-OWNED THROUGH AN

19 EMPLOYEE STOCK OWNERSHIP PLAN (ESOP).— 

20 (1) ESTABLISHMENT.—The Administrator may 

21 expand the pilot program authorized by section 874 

22 of the National Defense Authorization Act for Fiscal 

23 Year 2022 (Public Law 117–81; 10 U.S.C. 3204 

24 note) for Government-wide use, including by coordi25 nating as necessary with the Federal Acquisition 


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1 Regulatory Council to make related amendments to 

2 the Federal Acquisition Regulation. 

3 (2) FOLLOW-ON CONTRACTS.—Notwithstanding 

4 the requirements of section 3301 of title 41, United 

5 States Code, for purposes of carrying out a Govern6 ment-wide ESOP pilot program established under 

7 paragraph (1), the products or services to be pro8 cured by an executive agency under a follow-on con9 tract with a qualified business wholly-owned through 

10 an ESOP for the continued development, production, 

11 or provision of products or services that are the 

12 same as or substantially similar to the products or 

13 services procured under a prior contract may be pro14 cured through procedures other than competitive 

15 procedures if the performance of the qualified busi16 ness on the prior contract was rated as satisfactory 

17 (or the equivalent) or better. 

18 (3) LIMITATION.—A qualified business wholly19 owned through an ESOP may have a single oppor20 tunity for award of a sole-source follow-on contract 

21 under this subsection, unless the senior procurement 

22 executive of the executive agency awarding the con23 tract approves a waiver of such limitation. 

24 (b) VERIFICATION AND REPORTING OF QUALIFIED

25 BUSINESSES WHOLLY-OWNED THROUGH AN EMPLOYEE


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1 STOCK OWNERSHIP PLAN.—Under a pilot program estab2 lished under this section, the Administrator shall establish 

3 procedures— 

4 (1) for businesses to verify status as a qualified 

5 business wholly-owned through an ESOP for the 

6 purposes of this section by using existing Federal re7 porting mechanisms; 

8 (2) for a qualified businesses wholly-owned 

9 through an ESOP to certify that not more than 50 

10 percent of the amount paid under the contract will 

11 be expended on subcontracts, including similarly sit12 uated ESOPs if determined appropriate by the Ad13 ministrator, subject to such necessary and reason14 able waivers as the implementing guidance or regu15 lations may prescribe; and 

16 (3) to record and provide to relevant commit17 tees of Congress upon request information on each 

18 follow-on contract awarded under authority of this 

19 subsection, including details relevant to the nature 

20 of such contract and the qualified business wholly21 owned through an ESOP that received the contract. 

22 (c) SUNSET.—A pilot program established under this 

23 section shall expire on the date that is 5 years after the 

24 date of the enactment of this Act. 

Æ 


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