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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1736 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1736

   To achieve cost savings through the reform of Federal acquisition 
                       practices and procedures.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 19, 2011

     Mr. Brown of Massachusetts (for himself, Ms. Collins, and Mr. 
  Lieberman) introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
   To achieve cost savings through the reform of Federal acquisition 
                       practices and procedures.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Acquisition 
Savings Reform Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Use of reverse auction methods.
Sec. 4. Federal Strategic Sourcing Initiative.
Sec. 5. Savings through leveraging the Federal Government's purchasing 
                            power.
Sec. 6. Governmentwide contract vehicles.
Sec. 7. Streamlining of contract closeouts.
Sec. 8. Affordability as a requirement for certain acquisition plans.
Sec. 9. Cost efficiency objectives for service contracts.
Sec. 10. Establishing governmentwide acquisition savings criteria.
Sec. 11. Office of Management and Budget savings requirements.
Sec. 12. Expedited payment to small business.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Approved business case.--The term ``approved business 
        case'' means a business case approved by the senior procurement 
        executive of an executive agency.
            (2) Acquisition.--The term ``acquisition'' has the meaning 
        given the term in section 131 of title 41, United States Code.
            (3) Commercial item.--The term ``commercial item'' has the 
        meaning given the term in section 103 of title 41, United 
        States Code.
            (4) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 133 of title 41, United 
        States Code.
            (5) Federal acquisition regulation.--The term ``Federal 
        Acquisition Regulation'' means the Federal Acquisition 
        Regulation maintained under section 1303(a)(1) of title 41, 
        United States Code.
            (6) Federal acquisition regulatory council.--The term 
        ``Federal Acquisition Regulatory Council'' means the Federal 
        Acquisition Regulatory Council established under section 
        1302(a) of title 41, United States Code.
            (7) Federal strategic sourcing vehicles (fssvs).--The term 
        ``Federal Strategic Sourcing Vehicles'' means a kind of 
        governmentwide interagency acquisition contract or agreement 
        designated by the Office of Management and Budget to leverage 
        the Federal Government's buying power and save taxpayers money.
            (8) Interagency contract.--The term ``interagency 
        contract''--
                    (A) includes--
                            (i) governmentwide acquisition contracts as 
                        defined in Federal Acquisition Regulation part 
                        2.101;
                            (ii) multi-agency contracts as defined in 
                        Federal Acquisition Regulation part 2.101;
                            (iii) Federal Supply Schedule contracts; 
                        and
                            (iv) franchise funds; and
                    (B) does not include contracts entered into under 
                the authority of section 1535 of title 31, United 
                States Code.
            (9) Procurement.--The term ``procurement'' has the meaning 
        given the term in section 111 of title 41, United States Code.

SEC. 3. USE OF REVERSE AUCTION METHODS.

    Not later than 270 days after the date of the enactment of this 
Act, the Federal Acquisition Regulatory Council shall amend the Federal 
Acquisition Regulation to require the heads of executive agencies, to 
the extent possible, to use online reverse auction, or an equivalent 
method, in the procurement of commercial items above the simplified 
acquisition threshold whenever doing so would be expected to result in 
savings to the agencies. The regulatory guidance shall address the 
circumstances in which use of reverse auctions is appropriate, and 
shall direct agencies, in deciding whether to use auctions or an 
equivalent method, to consider the dollar volume of the acquisition and 
potential to streamline the procurement for the agency and vendors.

SEC. 4. FEDERAL STRATEGIC SOURCING INITIATIVE.

    (a) Consideration in Acquisition Planning Process.--Not later than 
270 days after the date of the enactment of this Act, the Federal 
Acquisition Regulatory Council shall amend the Federal Acquisition 
Regulation to require the consideration of Federal Strategic Sourcing 
Vehicles in the acquisition planning process, by including a listing of 
Federal Strategic Sourcing Vehicles in the ``Priorities for use of 
Government supply sources'' for Supplies and Services. The Office of 
Management and Budget shall maintain a website with the current list of 
Federal Strategic Sourcing Vehicles. The Supplies priority shall be 
after the priority for wholesale supply services. The Services priority 
shall be after services which are on the Procurement List maintained by 
the Committee for Purchase From People Who are Blind or Severely 
Disabled. The Federal Acquisition Regulation shall be amended to 
authorize purchases from other than from Federal Strategic Sourcing 
Vehicles, provided that consideration is given to its use in the 
acquisition planning process. The plan will be documented to 
acknowledge why usage of other than Federal Strategic Sourcing Vehicles 
is warranted. The acknowledgment shall indicate that such action is 
judged to be in the best interest of the Federal Government in terms of 
the combination quality, timeliness, and cost that best meets the 
requirement. Cost comparisons shall include the administrative cost of 
the acquisition. Unusual and compelling urgency as prescribed in the 
Federal Acquisition Regulation shall also be an authorized reason from 
deviating from the Federal Strategic Sourcing Vehicles.
    (b) Maximization of Small Business and Other Socioeconomic 
Categories in Federal Strategic Sourcing Vehicles.--The Administrator 
for Federal Procurement Policy shall issue policy maximizing the 
participation of small business and other socioeconomic categories such 
as service-disabled veteran-owned small business in these Federal 
Strategic Sourcing Vehicles. Agencies shall also be credited towards 
their small business goals when awarding to small business Federal 
Strategic Sourcing Vehicle contract holders.
    (c) Identification of Designated Federal Strategic Source 
Vehicles.--The Office of Management and Budget shall identify on its 
website a list of all Federal Strategic Source Vehicle contracts and 
agreements and awardees.
    (d) Inclusion of Information Technology Purchases and Services in 
Initiative.--
            (1) Data collection.--The Director of the Office of 
        Management and Budget shall prescribe regulations requiring 
        Chief Information Officers and Chief Acquisition Officers of 
        executive agencies to develop and gather such data on 
        information technology purchases and service acquisitions by 
        North American Industrial Classification codes.
            (2) Annual report.--The regulations prescribed under this 
        subsection shall require the head of each executive agency to 
        submit to the Director of Office of Management and Budget an 
        annual report through fiscal year 2016 including the data 
        collected under paragraph (1) and a plan for the strategic 
        sourcing of information technology purchases and common 
        commercial services. The plan shall include specific 
        milestones, measurable savings, and evaluation criteria.
    (e) Reporting.--The head of each executive agency shall submit to 
the Director of the Office of Management and Budget an annual report 
for each of fiscal years 2013 through 2016, estimating the amount of 
savings achieved through the usage of Federal Strategic Sourcing 
Vehicles and through other measurable acquisition savings methods 
approved by the Administrator for Federal Procurement Policy. The 
report shall also specify by each Federal Strategic Sourcing Vehicle 
commodity what guidance the agency has issued to employees instructing 
them to procure goods or services through the Federal Strategic 
Sourcing Vehicle. If the agency has not issued such guidance to their 
employees, the agency shall submit an explanation.

SEC. 5. SAVINGS THROUGH LEVERAGING THE FEDERAL GOVERNMENT'S PURCHASING 
              POWER.

    Not later than 120 days after the date of the enactment of this 
Act, the Director of the Office of Management and Budget shall develop 
a plan to achieve not less than $1,000,000,000 in measurable savings 
through Federal Strategic Sourcing Vehicles for fiscal years 2013 
through 2016. The plan shall include an annual scorecard measuring the 
success of each executive agency in achieving savings.

SEC. 6. GOVERNMENTWIDE CONTRACT VEHICLES.

    Not later than 270 days after the date of the enactment of this 
Act, the Federal Acquisition Regulatory Council shall amend the Federal 
Acquisition Regulation to provide that--
            (1) where an agency is unable to satisfy the requirements 
        from a mandatory source, agencies are strongly encouraged to 
        utilize Federal Supply Schedules, governmentwide acquisition 
        contracts, multi-agency contracts, and any other procurement 
        instruments intended for use by multiple agencies, including 
        blanket purchase agreements (BPAs) under Federal Supply 
        Schedule contracts absent a written justification that the 
        governmentwide contract is not in the best interest of the 
        Federal Government;
            (2) agencies shall promote acquisition strategies utilizing 
        these vehicles to maximize participation of small businesses 
        and other socioeconomic categories, including set-asides of 
        acquisitions under these vehicles; and
            (3) contracting officers shall be encouraged by agency 
        guidance to maximize competition under these vehicles to the 
        maximum amount practicable with the goal of achieving the best 
        value to the Federal Government.

SEC. 7. STREAMLINING OF CONTRACT CLOSEOUTS.

    (a) Authority To Waive Contract Closeout Audits.--
            (1) Authority.--Not later than 270 days after the date of 
        the enactment of this Act, the Federal Acquisition Regulatory 
        Council shall amend the Federal Acquisition Regulation to 
        provide contracting officers the authority to waive contract 
        closeout audits above the simplified acquisition purchase 
        threshold based on risk assessments. Factors upon which an 
        assessment of low risk may include time and material contracts, 
        low dollar cost type contracts, and contractors with approved 
        business systems, strong internal controls, and good past 
        performance ratings.
            (2) Guidance.--Not later than 270 days after the date of 
        the enactment of this Act, the Administrator for Federal 
        Procurement Policy, in collaboration with the Director of the 
        Defense Procurement and Acquisition Policy, shall issue 
        guidance for assisting contracting officials in determining 
        when waivers of contract closeout audits pursuant to paragraph 
        (1) are appropriate.
            (3) Use of abilityone program.--Where practicable, and in 
        accordance with the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
        seq.) as administered by the Committee For Purchase From People 
        Who Are Blind or Severely Disabled, utilize the AbilityOne 
        Program to accomplish non-inherently governmental tasks 
        associated with contract or grant close-out in those cases 
        where a Federal agency utilizes contractor support for close-
        out functions.
    (b) Firm-Fixed Contracts.--Not later than 270 days after the date 
of the enactment of this Act, the Federal Acquisition Regulatory 
Council shall amend the Federal Acquisition Regulation to provide that, 
on firm-fixed contracts--
            (1) contractors shall submit a final invoice within 60 days 
        of Federal Government acceptance or relinquish payment unless 
        exempted by the contracting officer;
            (2) the contracting officer may--
                    (A) close a contract without a final invoice if the 
                amount due is less than $1,000 and less than 10 percent 
                of the contract value; and
                    (B) unilaterally deobligate any unliquidated 
                obligations remaining on the contract; and
            (3) such contracts may be closed with missing contract 
        documentation if no additional product or service will be 
        received by the Federal Government and there are no outstanding 
        administrative actions.
    (c) Authority To Write Off Unreconciled Balances for Low-Risk 
Contracts.--Not later than 270 days after the date of the enactment of 
this Act, the Federal Acquisition Regulatory Council shall amend the 
Federal Acquisition Regulation to provide contracting officers, with 
approval one level above the contracting officer concerned, the 
authority to write off unreconciled balances on low-risk contracts in 
cases in which--
            (1) all administrative actions are complete, including 
        final payment to the contractor unless exempted under 
        subsection (b)(1); and
            (2) a written notice of the action has been sent to the 
        payment office responsible for the contract.
    (d) Authority To Grant Exemptions.--The regulations promulgated 
under this section shall permit the head of contracting activity to 
grant exemptions to the requirements under this section, with the 
exemptions included in the contract file.
    (e) Contracting Officer Defined.--In this section, the term 
``contracting officer'' includes procuring and administrative 
contracting officers.

SEC. 8. AFFORDABILITY AS A REQUIREMENT FOR CERTAIN ACQUISITION PLANS.

    (a) In General.--Not later than 270 days after the date of the 
enactment of this Act, the Federal Acquisition Regulatory Council shall 
amend the Federal Acquisition Regulation to require heads of executive 
agencies to mandate that affordability be included as a requirement for 
major systems, research and development, construction and architect-
engineering acquisitions prior to the approval of any acquisition plan 
exceeding $100,000,000.
    (b) Affordability Defined.--In this section, the term 
``affordability'' refers to conducting an acquisition program at a cost 
constrained by the maximum resources that an executive agency can 
allocate for a particular capability.

SEC. 9. COST EFFICIENCY OBJECTIVES FOR SERVICE CONTRACTS.

    Not later than 270 days after the date of the enactment of this 
Act, the Federal Acquisition Regulatory Council shall amend the Federal 
Acquisition Regulation to require service contracts valued at more than 
$100,000,000 include provisions to achieve productivity improvements 
and cost efficiencies. The regulation shall permit the head of 
contracting activity to grant exceptions to this requirement which 
shall be included in the contract file.

SEC. 10. ESTABLISHING GOVERNMENTWIDE ACQUISITION SAVINGS CRITERIA.

    The Administrator for Federal Procurement Policy, in collaboration 
with the Director of the Defense Procurement and Acquisition Policy, 
shall establish at least one year from enactment a methodology to track 
and monitor progress made by executive agencies in achieving measurable 
acquisition savings. Measurable acquisition savings should include 
price reductions and cost savings through reduced acquisition costs 
such as administrative costs.

SEC. 11. OFFICE OF MANAGEMENT AND BUDGET SAVINGS REQUIREMENTS.

    (a) Plan for Reduced Use of Time and Materials Contracts.--Not 
later than 270 days after the date of the enactment of this Act, the 
Administrator for Federal Procurement Policy, in coordination with the 
Administrator of General Services and the Secretary of Defense, shall 
develop a plan for reducing the use of time and materials and labor 
hour contracts, including for orders under indefinite delivery/
indefinite quantity contracts.
    (b) Report on Spending on Management Support Service Contracts.--
Not later than one year after the date of the enactment of this Act, 
the Administrator for Federal Procurement Policy, in collaboration with 
the Director of the Defense Procurement and Acquisition Policy, shall 
submit to Congress a report on reduced spending on management support 
service contracts.

SEC. 12. EXPEDITED PAYMENT TO SMALL BUSINESS.

    Not later than 270 days after the date of the enactment of this 
Act, the Federal Acquisition Regulatory Council shall amend the Federal 
Acquisition Regulation to reflect that governmentwide policy is to 
assist small business concerns by paying them as quickly as possible 
after invoices and all proper documentation, including acceptance, are 
received and before normal payment due dates established in the 
contract.
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