I

103D CONGRESS

1ST SESSION H. R. 3586

To amend laws relating to defense acquisition, including provisions relating

to the formation of contracts, contract administration and major system

management, procurement of information management systems and commercial activity contracting, the small purchase threshold, intellectual

property rights, defense trade and cooperation, and the acquisition of

commercial items.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 20, 1993

Mr. BILBRAY introduced the following bill; which was referred jointly to the

Committees on Armed Services, Government Operations, and Small Business

A BILL

To amend laws relating to defense acquisition, including provisions relating to the formation of contracts, contract

administration and major system management, procurement of information management systems and commercial activity contracting, the small purchase threshold,

intellectual property rights, defense trade and cooperation, and the acquisition of commercial items.

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 ‘‘Defense Acquisition

5 Reform Act of 1993’’.
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1 SEC. 2. TABLE OF CONTENTS.

2 The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—CONTRACT FORMATION

Subtitle A—Congressional Policy, Definitions, and Applicability

Sec. 101. Congressional defense procurement policy.

Sec. 102. Definitions.

Subtitle B—Competitive Statutes

Sec. 111. Contracts: planning, solicitation, evaluation, and award procedures.

Sec. 112. Kinds of contracts.

Sec. 113. Encouragement of competition and cost savings.

Sec. 114. Advocates for competition.

Sec. 115. Preference for nondevelopmental items.

Subtitle C—Truth in Negotiations Act

Sec. 121. Stabilization of dollar threshold of applicability.

Sec. 122. Exceptions to cost or pricing data requirements.

Sec. 123. Limitation on authority to require a submission not otherwise required.

Sec. 124. Additional special rules for commercial items.

Sec. 125. Right of United States to examine contractor records.

Sec. 126. Required regulations.

Sec. 127. Consistency of time references.

Sec. 128. Repeal of superseded provision.

Subtitle D—Research and Development

Sec. 131. Delegation of contracting authority.

Sec. 132. Research projects.

Sec. 133. Awards of grants and contracts to colleges and universities: requirement of competition.

Sec. 134. Elimination of inflexible terminology regarding coordination and communication of defense research activities.

Sec. 135. Cooperative agreements and other transactions.

Sec. 136. Contracts for research.

Subtitle E—Procurement Protests

Sec. 141. Sense of Congress on single forum for review of contract protests.

Sec. 142. Review of protests; effect on contracts pending decision.

Sec. 143. Decisions on protests.

Sec. 144. Regulations; authority of Comptroller General to verify assertions.

Sec. 145. Nonexclusivity of remedies; matters included in agency record.

Subtitle F—Other Related Statutes

Sec. 151. Delegation.

Sec. 152. Determinations and decisions.
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Sec. 153. Undefinitized contractual actions: restrictions.

Sec. 154. Production special tooling and production special test equipment: contract terms and conditions.

Sec. 155. Contracts: regulations for bids.

Sec. 156. Supplies: identification of supplier and sources.

TITLE II—CONTRACT ADMINISTRATION

Sec. 201. Contract payments.

Sec. 202. Cost principles.

Sec. 203. Consolidation and revision of authority to examine records of contractors.

Sec. 204. Administration of contract provisions relating to price, delivery, and

product quality.

TITLE III—MAJOR SYSTEMS AND COMMERCIAL ACTIVITIES

Subtitle A—Major Systems

Sec. 301. Selected acquisition reports; unit cost reports.

Sec. 302. Unit cost reports.

Sec. 303. Independent cost estimates; operational manpower requirements.

Sec. 304. Enhanced program stability.

Sec. 305. Major programs: competitive prototyping.

Sec. 306. Major programs: competitive alternative sources.

Subtitle B—Testing Statutes

Sec. 311. Repeal of testing requirement for wheeled or tracked vehicles.

Sec. 312. Major systems and munitions programs: survivability and lethality

testing.

Sec. 313. Operational test and evaluation of defense acquisition programs.

Sec. 314. Low-rate initial production of new systems.

Subtitle C—DOD Commercial and Industrial Activities

Sec. 321. Factories and arsenals: manufacture at.

Subtitle D—Industrial Base and Manufacturing Technology Laws

Sec. 331. Policy objectives relating to defense international trade.

Subtitle E—Miscellaneous

Sec. 341. Obligation of funds: limitation.

Sec. 342. Repeal of limitation on length of contracts.

TITLE IV—SMALL PURCHASE PROCEDURES AND SMALL

BUSINESS PROVISIONS

Sec. 401. Use of small purchase procedures for procurements conducted

through Federal acquisition computer network system; implementation of system.

Sec. 402. Small business reservation.

Sec. 403. Exemptions for contracts not in excess of the small purchase threshold.

Sec. 404. Small business amendments.

Sec. 405. Notification of small business concerns in locality of procuring

agency.
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TITLE V—INTELLECTUAL PROPERTY

Sec. 501. Department of Defense acquisition of intellectural property rights.

TITLE VI—STANDARDS OF CONDUCT

Subtitle A—Ethics Provisions

Sec. 601. Amendments to Office of Federal Procurement Policy Act.

Sec. 602. Repeal of superseded and obsolete laws.

Subtitle B—Additional Amendments

Sec. 611. Contracting functions performed by Federal personnel.

Sec. 612. Repeal of executed requirement for study and report.

Sec. 613. Waiting period for significant changes proposed for acquisition regulations.

TITLE VII—DEFENSE TRADE AND COOPERATION

Sec. 701. International cooperative agreements.

Sec. 702. Acquisition, cross-servicing agreements, and standardization.

TITLE VIII—COMMERCIAL ITEM ACQUISITION

Sec. 801. Procurement of commercial and nondevelopmental items.

TITLE IX—EFFECTIVE DATE

Sec. 901. Effective date.

1 TITLE I—CONTRACT FORMATION

2 Subtitle A—Congressional Policy,

3 Definitions, and Applicability

4 SEC. 101. CONGRESSIONAL DEFENSE PROCUREMENT POL5 ICY.

6 Section 2301 of title 10, United States Code, is

7 amended to read as follows:

8 ‘‘§ 2301. Congressional defense procurement policy

9 ‘‘(a) The Congress finds that in order to ensure na10 tional defense preparedness; conserve fiscal resources; en11 hance science and technology, research and development,

12 and production capability; provide for continued develop13 ment and preservation of an efficient and responsive de-
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1 fense industrial base; and ensure the financial and ethical

2 integrity of defense procurement programs, it is in the in3 terest of the United States that property and services be

4 acquired for the Department of Defense in the most time5 ly, economic, and efficient manner consistent with achiev6 ing an optimum balance among efficient processes, full

7 and open access to the procurement system, and sound

8 implementation of socioeconomic policies. It is therefore

9 the policy of Congress that—

10 ‘‘(1) full and open competitive procedures shall

11 be used by the Department of Defense in accordance

12 with the requirements of this chapter;

13 ‘‘(2) to the maximum extent practicable, the

14 Department of Defense shall acquire commercial

15 items to meet its needs and shall require prime con16 tractors and subcontractors, at all levels, which fur17 nish other than commercial items, to incorporate to

18 the maximum extent practicable commercial items as

19 components of items being supplied to the Depart20 ment;

21 ‘‘(3) when commercial items and components

22 are not available, practicable, or cost effective, the

23 Department of Defense shall acquire, and shall re24 quire prime contractors and subcontractors to incor-
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1 porate, nondevelopmental items and components to

2 the maximum extent practicable;

3 ‘‘(4) property and services for the Department

4 of Defense may be acquired by any kind of contract,

5 other than cost-plus-a-percentage-of-cost contracts,

6 but including multiyear contracts, that will promote

7 the interest of the United States and will provide for

8 appropriate allocation of risk between the Govern9 ment and the contractor with due regard to the na10 ture of the property or services to be acquired;

11 ‘‘(5) contracts, when appropriate, shall provide

12 incentives to contractors to improve productivity

13 through investment in capital facilities, equipment,

14 flexible manufacturing processes, and advanced and

15 dual-use technology;

16 ‘‘(6) contracts for advance procurement of com17 ponents, parts, and materials necessary for manufac18 ture or for logistics support of a weapon system

19 should, if practicable, be entered into in a manner

20 to achieve economic-lot purchases and more efficient

21 production rates;

22 ‘‘(7) procurement protests and disputes be fair23 ly and expeditiously resolved through uniform inter24 pretation of relevant laws and regulations;
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1 ‘‘(8) the head of an agency shall use advance

2 procurement planning and market research and de3 velop contract requirements in such a manner as is

4 necessary to obtain full and open competition with

5 due regard to the nature of the property or services

6 to be acquired; but may restrict competitions to sup7 pliers of commercial items to foster accomplishment

8 of the above objective; and

9 ‘‘(9) the head of an agency shall develop and

10 maintain an acquisition career management program

11 to ensure a professional acquisition work force in ac12 cordance with the requirements of chapter 87 of this

13 title.

14 ‘‘(b) Further, it is the policy of Congress that pro15 curement policies and procedures for the agencies named

16 in section 2303 of this title shall, in accordance with the

17 requirements of this title—

18 ‘‘(1) be issued in accordance with and conform

19 to the requirements of sections 22 and 25 of the Of20 fice of Federal Procurement Policy Act (41 U.S.C.

21 418b and 421);

22 ‘‘(2) promote and implement the Congressional

23 policies in subsection (a) of this section and section

24 2 of the Office of Federal Procurement Policy Act

25 (41 U.S.C. 401);
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1 ‘‘(3) be implemented to support the require2 ments of such agencies in time of war or national

3 emergency as well as in peacetime;

4 ‘‘(4) promote responsiveness of the procurement

5 system to agency needs by—

6 ‘‘(A) simplifying and streamlining procure7 ment processes; and

8 ‘‘(B) providing incentives to encourage

9 contractors to take actions and make rec10 ommendations that would reduce the costs of

11 property or services to be acquired;

12 ‘‘(5) facilitate the acquisition of commercial

13 items and commercial components at or based on

14 commercial market prices, without requiring contrac15 tors to change their business practices; and

16 ‘‘(6) promote the acquisition and use of com17 mercial items, commercial components, and

18 nondevelopmental items by requiring descriptions of

19 agency requirements, whenever practicable, in terms

20 of functions to be performed or performance re21 quired.

22 ‘‘(c) Further, it is the policy of Congress that 20 per23 cent of the purchases and contracts entered into under

24 this chapter be placed with small business concerns.
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1 ‘‘(d) It is also the policy of Congress that qualified

2 nonprofit agencies for the blind or severely handicapped

3 (as defined in section 2410d(b) of this title) shall be af4 forded the maximum practicable opportunity to provide

5 approved commodities and services (as defined in such sec6 tion) as subcontractors and suppliers under contracts

7 awarded by the Department of Defense.’’.

8 SEC. 102. DEFINITIONS.

9 Section 2302 of title 10, United States Code, is

10 amended—

11 (1) by striking out paragraph (3) and inserting

12 in lieu thereof the following:

13 ‘‘(3) The terms ‘procurement’, ‘procurement

14 system’, ‘standards’, ‘full and open competition’, ‘re15 sponsible source’, ‘technical data’, and ‘major sys16 tem’ have the meanings provided such terms by sec17 tion 4 of the Office of Federal Procurement Policy

18 Act (41 U.S.C. 403).’’;

19 (2) by striking out paragraph (4) and inserting

20 in lieu thereof the following:

21 ‘‘(4) The term ‘small purchase threshold’ has

22 the meaning provided that term by section 4(11) of

23 the Office of Federal Procurement Policy Act (41

24 U.S.C. 403(11)).’’;
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1 (3) by striking out paragraph (5) and inserting

2 in lieu thereof the following:

3 ‘‘(5) The term ‘nondevelopmental item’ means

4 any item of supply that is not a commercial item but

5 which is—

6 ‘‘(A) previously developed and in use by a

7 department or agency of the United States, a

8 State or local government, or a foreign govern9 ment with which the United States has a mu10 tual defense cooperation agreement;

11 ‘‘(B) previously developed and requires

12 only minor modification in order to meet the re13 quirements of the procuring agency; or

14 ‘‘(C) currently being produced but not yet

15 in use.’’; and

16 (4) by striking out paragraph (7) and inserting

17 in lieu thereof the following:

18 ‘‘(7)(A) The term ‘commercial item’ means—

19 ‘‘(i) property other than real property, or

20 a combination of such property and related inci21 dental services of the type customarily com22 bined and sold, leased, or licensed in combina23 tion, that—

24 ‘‘(I) has been sold, leased, or licensed

25 to the general public;
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1 ‘‘(II) has not been sold, leased, or li2 censed to the general public, but has been

3 offered for sale, lease, or license to the

4 general public; or

5 ‘‘(III) is not yet available in the com6 mercial marketplace, but will be available

7 for commercial delivery in a reasonable pe8 riod of time; and

9 ‘‘(ii) services used to support property and

10 combinations of property and services described

11 in clause (i), whether such services are procured

12 with the property or combination of property

13 and services or under separate contract, if such

14 services are or will be offered contempora15 neously to the general public under similar

16 terms and conditions.

17 ‘‘(B) With respect to a specific solicitation, an

18 item meeting the criteria set forth in subparagraph

19 (A) if unmodified will be deemed to be a commercial

20 item when modified for sale to the Government if

21 the modifications required to meet Government re22 quirements—

23 ‘‘(i) are modifications of the type cus24 tomarily provided in the commercial market25 place; or
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1 ‘‘(ii) would not significantly alter the non2 governmental function or purpose of the item in

3 order to meet the requirements or specifications

4 of the procuring agency.’’.

5 Subtitle B—Competitive Statutes

6 SEC. 111. CONTRACTS: PLANNING, SOLICITATION, EVALUA7 TION, AND AWARD PROCEDURES.

8 Section 2305 of title 10, United States Code, is

9 amended—

10 (1) in subsection (a)(2), by striking out ‘‘(other

11 than for small purchases)’’ in the first sentence and

12 inserting in lieu thereof ‘‘(estimated to be in excess

13 of the small purchase threshold)’’;

14 (2) in subsection (a), by redesignating para15 graph (3) as paragraph (4);

16 (3) in subsection (a), by adding after paragraph

17 (2) the following new paragraph (3):

18 ‘‘(3) The head of an agency, in issuing a solicitation

19 for a contract to be awarded using sealed bid procedures,

20 shall not include in such solicitation a clause providing for

21 the evaluation of prices under the contract for options to

22 purchase additional supplies or services under the contract

23 unless the head of the agency has determined that there

24 is a reasonable likelihood that the options will be exer25 cised.’’;
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1 (4) by adding at the end of subsection

2 (b)(4)(B) the following: ‘‘The regulations implement3 ing this chapter shall—

4 ‘‘(i) establish the criteria for determining

5 whether an unsuccessful offeror is entitled to a de6 briefing;

7 ‘‘(ii) provide that any required debriefing shall

8 be conducted to the maximum extent practicable

9 within 15 calendar days after the date of award; and

10 ‘‘(iii) provide that any required debriefing con11 tain information on the strengths and weaknesses of

12 that offeror’s proposal.’’; and

13 (5) in subsection (b), by redesignating para14 graph (5) as paragraph (7) and inserting after para15 graph (4) the following new paragraphs:

16 ‘‘(5) Where a protest is filed pursuant to the proce17 dures in subchapter V of chapter 35 of title 31, United

18 States Code (31 U.S.C. 3551 et seq.) and where an actual

19 or prospective offeror so requests, a file of the protest shall

20 be established by the contracting activity and reasonable

21 access shall be provided to actual or prospective offerors.

22 This file should contain such information as would ordi23 narily be releasable under the section 552 of title 5, Unit24 ed States Code (commonly referred to as the ‘Freedom

25 of Information Act’).
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1 ‘‘(6) If a protest is filed and if the head of the agency

2 determines that a solicitation, proposed award, or award

3 does not comply with a statute or regulation, the head of

4 the agency may take any action which the agency is au5 thorized to take under subparagraphs (A) through (F) of

6 section 3554(b)(1) of title 31, United States Code.’’.

7 SEC. 112. KINDS OF CONTRACTS.

8 Section 2306 of title 10, United States Code, is

9 amended—

10 (1) by striking out the first sentence of sub11 section (b) and inserting in lieu thereof the follow12 ing: ‘‘Each contract in an amount in excess of the

13 small purchase threshold awarded under this chapter

14 after using noncompetitive procedures shall contain

15 a warranty that the contractor has employed or re16 tained no person or selling agency to solicit or obtain

17 the contract under an understanding or agreement

18 for a commission, percentage, brokerage, or contin19 gent fee, except a bona fide employee or established

20 commercial or selling agency maintained by the con21 tractor to obtain business.’’;

22 (2) by striking out subsections (c), (d), and (f);

23 (3) by redesignating subsection (e) as sub24 section (c); and
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1 (4) by redesignating subsections (g) and (h) as

2 subsections (d) and (e), respectively.

3 SEC. 113. ENCOURAGEMENT OF COMPETITION AND COST

4 SAVINGS.

5 (a) REPEAL.—Section 2317 of title 10, United States

6 Code, is hereby repealed.

7 (b) TECHNICAL AMENDMENT.—The table of sections

8 at the beginning of chapter 137 of such title is amended

9 by striking out the item relating to section 2317.

10 SEC. 114. ADVOCATES FOR COMPETITION.

11 Section 2318 of title 10, United States Code, is

12 amended by striking out subsection (c).

13 SEC. 115. PREFERENCE FOR NONDEVELOPMENTAL ITEMS.

14 (a) REPEAL.—Section 2325 of title 10, United States

15 Code, is hereby repealed.

16 (b) TECHNICAL AMENDMENT.—The table of sections

17 at the beginning of chapter 137 of such title is amended

18 by striking out the item relating to section 2325.

19 Subtitle C—Truth in Negotiations

20 Act

21 SEC. 121. STABILIZATION OF DOLLAR THRESHOLD OF AP22 PLICABILITY.

23 Section 2306a(a)(1)(A) of title 10, United States

24 Code, is amended—
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1 (1) in clause (i), by striking out ‘‘and before

2 January 1, 1996,’’; and

3 (2) in clause (ii), by striking out ‘‘or after De4 cember 31, 1995,’’.

5 SEC. 122. EXCEPTIONS TO COST OR PRICING DATA RE6 QUIREMENTS.

7 Section 2306a(b) of title 10, United States Code, is

8 amended to read as follows:

9 ‘‘(b) EXCEPTIONS.—(1) This section need not be ap10 plied to a contract or subcontract—

11 ‘‘(A) for which the price agreed upon is based

12 on—

13 ‘‘(i) adequate price competition;

14 ‘‘(ii) established catalog or market prices

15 of commercial items or of services regularly

16 used for other than Government purposes, as

17 the case may be, that are sold in substantial

18 quantities to the general public; or

19 ‘‘(iii) prices set by law or regulation; or

20 ‘‘(B) in an exceptional case when the head of

21 the agency determines that the requirements of this

22 section may be waived and states in writing the rea23 sons for such determination.

24 ‘‘(2) This section need not be applied to a modifica25 tion of a contract or subcontract if—
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1 ‘‘(A) the contract or subcontract being modified

2 is one to which this section need not be applied by

3 reason of clause (i) or (ii) of paragraph (1)(A); and

4 ‘‘(B) the modification would not change the

5 contract or subcontract, as the case may be, from a

6 contract or subcontract for the acquisition of a com7 mercial item to a contract or subcontract for the ac8 quisition of a noncommercial item.’’.

9 SEC. 123. LIMITATION ON AUTHORITY TO REQUIRE A SUB10 MISSION NOT OTHERWISE REQUIRED.

11 Section 2306a(c) of title 10, United States Code, is

12 amended by striking out ‘‘by subsection (a), such data

13 may nevertheless be required to be submitted by the head

14 of the agency if’’ and inserting in lieu thereof ‘‘by reason

15 of subsection (b), submission of such data may not be re16 quired unless’’.

17 SEC. 124. ADDITIONAL SPECIAL RULES FOR COMMERCIAL

18 ITEMS.

19 Section 2306a of title 10, United States Code, is

20 amended—

21 (1) by redesignating subsections (d), (e), (f),

22 and (g) as subsections (e), (f), (g), and (i), respec23 tively; and

24 (2) by inserting after subsection (c) the follow25 ing new subsection (d):
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1 ‘‘(d) ADDITIONAL EXCEPTION REGARDING COMMER2 CIAL ITEMS.—(1) To the maximum extent practicable, the

3 head of an agency shall—

4 ‘‘(A) conduct procurements of commercial items

5 on a competitive basis; and

6 ‘‘(B) exercise the authority provided in sub7 section (b)(1)(A) to exempt the contracts and sub8 contracts under such procurements from the require9 ments of subsection (a).

10 ‘‘(2) In any case in which it is not practicable to con11 duct a procurement of a commercial item on a competitive

12 basis and the procurement is not covered by an exception

13 in subsection (b), the contracting officer shall nonetheless

14 exempt a contract or subcontract under the procurement

15 from the requirements of subsection (a) if—

16 ‘‘(A) in accordance with regulations implement17 ing this paragraph, the offeror, contractor, or sub18 contractor, as the case may be, provides the con19 tracting officer with information on the price

20 charged by such offeror, contractor, or subcontractor

21 for the same or similar products in the commercial

22 marketplace; and

23 ‘‘(B) the contracting officer determines in writ24 ing that the information provided is adequate for
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1 evaluating the reasonableness of the price of the con2 tract or subcontract.

3 ‘‘(3)(A) The Government shall be entitled to a reduc4 tion in price and the return of any overpayment, with in5 terest, if an offeror, contractor, or subcontractor provides

6 materially inaccurate or misleading information to the

7 contracting officer pursuant to paragraph (2).

8 ‘‘(B) Nothing in subparagraph (A) is intended to pre9 clude the head of an agency from negotiating any contract

10 clause that provides additional price adjustment authority

11 for the protection of the Government’s interest in specific

12 types of contracts, including multiple ordering agree13 ments.

14 ‘‘(4)(A) The head of an agency shall have the right

15 to examine all information provided by an offeror, contrac16 tor, or subcontractor pursuant to paragraph (2) and all

17 books and records of such offeror, contractor, or sub18 contractor that directly relate to the information provided

19 in order to determine whether such information is materi20 ally inaccurate or misleading.

21 ‘‘(B) The right under subparagraph (A) shall expire

22 1 year after the date of award of the contract, or 1 year

23 after the date of the modification of the contract, with

24 respect to which the information was provided.’’.
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1 SEC. 125. RIGHT OF UNITED STATES TO EXAMINE CON2 TRACTOR RECORDS.

3 Section 2306a of title 10, United States Code, is

4 amended by striking out subsection (g), as redesignated

5 by section 124(1), and inserting in lieu thereof the follow6 ing:

7 ‘‘(g) RIGHT OF UNITED STATES TO EXAMINE CON8 TRACTOR RECORDS.—For the purpose of evaluating the

9 accuracy, completeness, and currency of cost or pricing

10 data required to be submitted by this section, the head

11 of an agency shall have the rights provided by section

12 2313 of this title.’’.

13 SEC. 126. REQUIRED REGULATIONS.

14 Section 2306a of title 10, United States Code, as

15 amended by sections 124 and 125, is further amended by

16 inserting after subsection (g) the following new subsection:

17 ‘‘(h) REQUIRED REGULATIONS.—(1) The Secretary

18 of Defense shall prescribe regulations identifying the type

19 of procurements for which contracting officers should con20 sider requiring the submission of certified cost or pricing

21 data under this section.

22 ‘‘(2) The Secretary also shall prescribe regulations

23 concerning the types of information that offerors must

24 submit for a contracting officer to consider in determining

25 whether the price of a procurement to the Government is

26 fair and reasonable when certified cost or pricing data are
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1 not required to be submitted under this section because

2 the price of the procurement to the United States is not

3 expected to exceed $500,000. Such information, at a mini4 mum, shall include appropriate information on the prices

5 at which such offeror has previously sold the same or simi6 lar products.’’.

7 SEC. 127. CONSISTENCY OF TIME REFERENCES.

8 Section 2306a of title 10, United States Code, as

9 amended by sections 124, 125, and 126, is further amend10 ed—

11 (1) in subparagraphs (A)(ii) and (B)(ii) of sub12 section (e)(4), by inserting ‘‘or, if applicable consist13 ent with paragraph (1)(B), another date agreed

14 upon between the parties’’ after ‘‘(or price of the

15 modification)’’; and

16 (2) in subsection (i), by inserting ‘‘or, if appli17 cable consistent with subsection (d)(1)(B), another

18 date agreed upon between the parties’’ after ‘‘(or the

19 price of a contract modification)’’.

20 SEC. 128. REPEAL OF SUPERSEDED PROVISION.

21 Subsection (c) of section 803 of Public Law 101–510

22 (10 U.S.C. 2306a note) is repealed.
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1 Subtitle D—Research and

2 Development

3 SEC. 131. DELEGATION OF CONTRACTING AUTHORITY.

4 Section 2356 of title 10, United States Code, is

5 amended to read as follows:

6 ‘‘§ 2356. Contracts: delegations

7 ‘‘(a) AUTHORITY.—The Secretary of a military de8 partment may delegate any authority under section 1584,

9 2353, or 2354 of this title to—

10 ‘‘(1) the Under Secretary of his department;

11 ‘‘(2) an Assistant Secretary of his department;

12 ‘‘(3) a Deputy Assistant Secretary of his de13 partment; or

14 ‘‘(4) except as provided in subsection (b), the

15 chief, and one assistant to the chief, of any technical

16 service, bureau, or office.

17 ‘‘(b) LIMITATION.—The authority of the Secretary of

18 a military department under section 2353(b)(3) of this

19 title may not be delegated to a person described in sub20 section (a)(4).’’.

21 SEC. 132. RESEARCH PROJECTS.

22 (a) AUTHORITY TO CONDUCT BASIC, ADVANCED,

23 AND APPLIED RESEARCH.—Section 2358 of title 10,

24 United States Code, is amended to read as follows:
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1 ‘‘§ 2358. Research projects

2 ‘‘(a) AUTHORITY.—The Secretary of Defense or the

3 Secretary of a military department may engage in basic,

4 advanced, and applied research and development projects

5 that—

6 ‘‘(1) are necessary to the responsibilities of

7 such Secretary’s department in the field of basic, ad8 vanced, and applied research and development; and

9 ‘‘(2) either—

10 ‘‘(A) relate to weapons systems and other

11 military needs; or

12 ‘‘(B) are of potential interest to such de13 partment.

14 ‘‘(b) AUTHORIZED MEANS.—The Secretary of De15 fense or the Secretary of a military department may per16 form research and development projects—

17 ‘‘(1) by contract, cooperative agreement, or

18 other transaction with, or by grant to, educational or

19 research institutions, private businesses, or other

20 agencies of the United States;

21 ‘‘(2) by using employees and consultants of the

22 Department of Defense; or

23 ‘‘(3) through one or more of the military de24 partments.

25 ‘‘(c) REQUIREMENT OF POTENTIAL MILITARY IN26 TEREST.—Funds appropriated to the Department of De-
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1 fense or to a military department may not be used to fi2 nance any research project or study unless the project or

3 study is, in the opinion of the Secretary of Defense or the

4 Secretary of that military department, respectively, of po5 tential interest to the Department of Defense or to such

6 military department, respectively.’’.

7 (b) AUTHORITY RELATED TO ADVANCED RESEARCH

8 PROJECTS.—

9 (1) REPEAL OF REDUNDANT AUTHORITY.—Sec10 tion 2371 of such title is amended—

11 (A) by striking out subsection (a);

12 (B) by redesignating subsections (b), (c),

13 (d), (e), (f), and (g) as subsections (a), (b), (c),

14 (d), (e), and (f), respectively;

15 (C) in subsection (a), as redesignated by

16 subparagraph (B)—

17 (i) in paragraph (1), by striking out

18 ‘‘subsection (a)’’ and inserting in lieu

19 thereof ‘‘section 2358 of this title’’; and

20 (ii) in paragraph (2), by striking out

21 ‘‘subsection (e)’’ and inserting in lieu

22 thereof ‘‘subsection (d)’’;

23 (D) in subsection (d), as redesignated by

24 subparagraph (B), by striking out ‘‘subsection
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1 (a)’’ and inserting in lieu thereof ‘‘section 2358

2 of this title’’; and

3 (E) in subsection (e), as redesignated by

4 subparagraph (B)—

5 (i) in paragraph (4), by striking out

6 ‘‘subsection (b)’’ and inserting in lieu

7 thereof ‘‘subsection (a)’’; and

8 (ii) in paragraph (5), by striking out

9 ‘‘subsection (e)’’ and inserting in lieu

10 thereof ‘‘subsection (d)’’.

11 (2) CONSISTENCY OF TERMINOLOGY.—Such

12 section, as amended by paragraph (1), is further

13 amended—

14 (A) in subsection (c)(1), by inserting ‘‘and

15 development’’ after ‘‘research’’ both places it

16 appears;

17 (B) in subsections (d) and (e)(3), by strik18 ing out ‘‘advanced research’’ and inserting in

19 lieu thereof ‘‘research and development’’; and

20 (C) in subsection (e)(1), by striking out

21 ‘‘advanced research is’’ and inserting in lieu

22 thereof ‘‘research and development are’’.

23 (c) REDUNDANT AND OBSOLETE AUTHORITY FOR

24 THE ARMY.—
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1 (1) REPEAL.—Section 4503 of title 10, United

2 States Code, is repealed.

3 (2) TECHNICAL AMENDMENT.—The table of

4 sections at the beginning of chapter 431 of such title

5 is amended by striking out the item relating to sec6 tion 4503.

7 (d) REDUNDANT AND OBSOLETE AUTHORITY FOR

8 THE AIR FORCE.—

9 (1) REPEAL.—Section 9503 of title 10, United

10 States Code, is repealed.

11 (2) TECHNICAL AMENDMENT.—The table of

12 sections at the beginning of chapter 931 of such title

13 is amended by striking out the item relating to sec14 tion 9503.

15 SEC. 133. AWARDS OF GRANTS AND CONTRACTS TO COL16 LEGES AND UNIVERSITIES: REQUIREMENT

17 OF COMPETITION.

18 (a) REPEAL.—Subsection (c) of section 2361 of title

19 10, United States Code, is repealed.

20 (b) AMENDMENT.—Section 2361 of title 10, United

21 States Code, is amended by inserting ‘‘or nonprofit organi22 zation other than a federally funded research and develop23 ment center (FFRDC)’’ after ‘‘college or university’’ in

24 each place it appears in subsections (a) and (b).
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1 SEC. 134. ELIMINATION OF INFLEXIBLE TERMINOLOGY RE2 GARDING COORDINATION AND COMMUNICA3 TION OF DEFENSE RESEARCH ACTIVITIES.

4 Section 2364 of title 10, United States Code, is

5 amended—

6 (1) in subsection (b)(5), by striking out ‘‘mile7 stone 0, milestone I, and milestone II decisions’’ and

8 inserting in lieu thereof ‘‘acquisition program deci9 sions’’; and

10 (2) in subsection (c), by striking out para11 graphs (2), (3), and (4) and inserting in lieu thereof

12 the following:

13 ‘‘(2) The term ‘acquisition program decisions’

14 has the meaning given such term in regulations pre15 scribed by the Secretary of Defense for the purposes

16 of this section.’’.

17 SEC. 135. COOPERATIVE AGREEMENTS AND OTHER TRANS18 ACTIONS.

19 (a) NONPROCUREMENT AGREEMENTS.—Section

20 2371 of title 10, United States Code, is amended as fol21 lows:

22 (1) Subsection (a) is amended by striking out

23 ‘‘cooperative agreements and other transactions’’

24 and inserting in lieu thereof ‘‘nonprocurement agree25 ments’’.
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1 (2) Subsection (b)(1) is amended by striking

2 out ‘‘Cooperative agreements and other trans3 actions’’ and inserting in lieu thereof

4 ‘‘Nonprocurement agreements’’.

5 (3) Subsection (d) is amended by striking out

6 ‘‘cooperative agreement or other transaction’’ each

7 place it appears and inserting in lieu thereof

8 ‘‘nonprocurement agreement’’.

9 (4) Subsection (e) is amended by striking out

10 ‘‘cooperative agreements and other transactions’’

11 and inserting in lieu thereof ‘‘nonprocurement agree12 ments’’.

13 (5) Subsection (f) is amended—

14 (A) in the matter before paragraph (1)—

15 (i) by striking out ‘‘cooperative agree16 ments and other transactions (other than

17 contracts and grants)’’ and inserting in

18 lieu thereof ‘‘nonprocurement agreements’’;

19 and

20 (ii) by striking out ‘‘cooperative agree21 ment and transaction’’ and inserting in

22 lieu thereof ‘‘nonprocurement agreement’’;

23 (B) in paragraph (1)—

24 (i) by striking out ‘‘cooperative agree25 ment or other transaction (as the case may
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1 be)’’ and inserting in lieu thereof

2 ‘‘nonprocurement agreement’’; and

3 (ii) by striking out ‘‘agreement or

4 transaction.’’ and inserting in lieu thereof

5 ‘‘agreement.’’; and

6 (C) in paragraph (4), by striking out ‘‘co7 operative agreement or other transaction’’ and

8 inserting in lieu thereof ‘‘nonprocurement

9 agreement’’.

10 (b) DEFINITION.—Section 2371 of such title is fur11 ther amended by adding at the end the following new sub12 section:

13 ‘‘(h) DEFINITION.—In this section, the term

14 ‘nonprocurement agreement’ means an agreement other

15 than—

16 ‘‘(1) a procurement contract, grant, or coopera17 tive agreement, as those terms are used in sections

18 6301 through 6308 of title 31; and

19 ‘‘(2) a cooperative research and development

20 agreement (CRDA), as defined in section 12 of the

21 Stevenson-Wydler Technology Innovation Act of

22 1980 (15 U.S.C. 3710a).’’.

23 (c) OTHER DEFENSE RESEARCH AND DEVELOP24 MENT AGENCIES.—Subsections (a) and (g) of section

25 2371 of such title are each amended by inserting ‘‘and
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1 other defense research and development agencies’’ after

2 ‘‘Defense Advanced Research Projects Agency’’.

3 (d) SECTION HEADING AMENDMENT.—(1) The head4 ing of section 2371 of such title is amended to read as

5 follows:

6 ‘‘§ 2371. Advanced research projects: nonprocurement

7 agreements’’.

8 (2) The table of sections at the beginning of chapter

9 139 of such title is amended by striking out the item relat10 ing to section 2371 and inserting in lieu thereof the follow11 ing:

‘‘2371. Advanced research projects: nonprocurement agreements.’’.

12 SEC. 136. CONTRACTS FOR RESEARCH.

13 (a) REPEAL.—Section 7522 of title 10, United States

14 Code, is hereby repealed.

15 (b) TECHNICAL AMENDMENT.—The table of sections

16 at the beginning of chapter 645 of such title is amended

17 by striking out the item related to section 7522.

18 Subtitle E—Procurement Protests

19 SEC. 141. SENSE OF CONGRESS ON SINGLE FORUM FOR RE20 VIEW OF CONTRACT PROTESTS.

21 It is the sense of Congress that there should be a

22 single forum, in the Office of the Comptroller General in

23 the General Accounting Office, to review government con24 tracting protests.
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1 SEC. 142. REVIEW OF PROTESTS; EFFECT ON CONTRACTS

2 PENDING DECISION.

3 Section 3553 of title 31, United States Code, is

4 amended—

5 (1) in subsection (b)(1), by striking out ‘‘work6 ing day’’ and inserting in lieu thereof ‘‘calender day

7 from the date’’;

8 (2) in subsection (b)(2)(A), by striking out ‘‘25

9 working days’’ and inserting in lieu thereof ‘‘25 cal10 ender days’’;

11 (3) in subsection (b)(2)(C), by striking out ‘‘10

12 working days’’ and inserting in lieu thereof ‘‘25 cal13 endar days’’;

14 (4) by striking out ‘‘days thereafter’’ in sub15 section (c)(3) and inserting in lieu thereof ‘‘calender

16 days from the date of the finding’’;

17 (5) by striking out paragraph (1) of subsection

18 (d) and inserting in lieu thereof the following:

19 ‘‘(1) If a Federal agency receives notice of a

20 protest under this section after the contract has

21 been awarded but (A) within 10 calendar days after

22 the date of the contract award, or (B) within five

23 calendar days from the debriefing date offered to an

24 unsuccessful offeror for any requested and required

25 debriefing (provided that the unsuccessful offeror re26 quested the debriefing in writing within three cal-
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1 endar days after the contract award), whichever is

2 later, the Federal agency (except as provided under

3 paragraph (2)) shall, upon receipt of that notice, im4 mediately direct the contractor to cease performance

5 under the contract and to suspend any related ac6 tivities that may result in additional obligations

7 being incurred by the United States under that con8 tract. Performance of the contract may not be re9 sumed while the protest is pending.’’; and

10 (6) by striking out subsection (f) and inserting

11 in lieu thereof the following:

12 ‘‘(f)(1) Within such deadlines as the Comptroller

13 General prescribes and subject to any order made under

14 paragraph (2), upon request each Federal agency shall

15 provide to an interested party any document relevant to

16 a protested procurement action (including the report re17 quired by subsection (b)(2)) that would not give that party

18 a competitive advantage and that the party is otherwise

19 authorized by law to receive.

20 ‘‘(2) The Comptroller General, under the procedures

21 established pursuant to section 3555 of this title, may

22 make an appropriate protective order specifying that, not23 withstanding any other provision of law—
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1 ‘‘(A) access to documents or information, in2 cluding any Federal agency documents or informa3 tion, may be had on specific terms and conditions;

4 ‘‘(B) procurement sensitive, trade secret, or

5 other proprietary and confidential research, develop6 ment, or commercial information may not be dis7 closed or may be disclosed only in a designated way;

8 and

9 ‘‘(C) any hearing shall be conducted with no

10 one present except persons designated by the Comp11 troller General.’’.

12 SEC. 143. DECISIONS ON PROTESTS.

13 Section 3554 of title 31, United States Code, is

14 amended—

15 (1) in subsection (a)(1), by striking out ‘‘90

16 working’’ and inserting in lieu thereof ‘‘120 cal17 endar’’;

18 (2) in subsection (a)(2), by striking out ‘‘45’’

19 and inserting in lieu thereof ‘‘60 calendar’’;

20 (3) in subsection (a), by redesignating para21 graph (3) as paragraph (4) and inserting after para22 graph (2) the following new paragraph (3):

23 ‘‘(3) Amendments to protests which add new

24 grounds of protest should be resolved, to the maxi25 mum extent practicable, within the time limits estab-
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1 lished under paragraph (1) of this subsection for the

2 initial protest. If amended protests cannot be re3 solved within such time limit, the Comptroller Gen4 eral may resolve the amended protest through the

5 express option under paragraph (2) of this sub6 section.’’;

7 (4) by adding at the end of subsection (a) the

8 following new paragraph:

9 ‘‘(5) If the Comptroller General expressly finds

10 that a protest or a portion of a protest is frivolous

11 or has not been brought or pursued in good faith,

12 the protester or other interested party who joins the

13 protest shall be liable to the United States for pay14 ment of, and the Comptroller General shall order the

15 protester or other interested party to pay, all or that

16 portion of the United States costs, for which such a

17 finding is made, of reviewing the protest, including

18 the fees and other expenses (as defined in section

19 2412(d)(2)(A) of title 28) incurred by the United

20 States in defending the protest, unless (1) special

21 circumstances would make such payment unjust, or

22 (2) the protester obtains documents or other infor23 mation for the first time, after the protest is filed

24 with the Comptroller General, that establishes that

25 the protest or a portion of the protest is frivolous or
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1 has not been brought in good faith, and the pro2 tester then promptly withdraws the protest or por3 tion of the protest.’’;

4 (5) in subsection (c)(1)(A) by adding ‘‘and con5 sultant and expert witness fees’’ after ‘‘attorneys’

6 fees’’; and

7 (6) in subsection (e)(2) by adding at the end

8 the following: ‘‘The report shall also describe each

9 instance where a final decision was not rendered

10 within 120 calendar days.’’.

11 SEC. 144. REGULATIONS; AUTHORITY OF COMPTROLLER

12 GENERAL TO VERIFY ASSERTIONS.

13 Section 3555 of title 31, United States Code, is

14 amended to read as follows:

15 ‘‘§ 3555. Regulations; authority of Comptroller Gen16 eral to verify assertions

17 ‘‘(a) The Comptroller General shall prescribe such

18 procedures as may be necessary to the expeditious decision

19 of protests under this subchapter, including procedures for

20 accelerated resolution of protests under the express option

21 authorized by section 3554(a)(2) of this title. Such proce22 dures shall provide that the protest process may not be

23 delayed by the failure of a party to make a filing within

24 the time provided for the filing.
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1 ‘‘(b) In computing any period of time prescribed or

2 allowed by this subchapter, the procedures shall provide

3 that the day of the act, event, or default from which the

4 designated period of time begins to run shall not be in5 cluded. The last day of the period so computed shall be

6 included, unless it is a Saturday, a Sunday, or a legal holi7 day, or, when the act to be done is the filing of a paper

8 at the General Accounting Office or a Federal agency, a

9 day on which weather or other conditions have made the

10 General Accounting Office or Federal agency inaccessible,

11 in which event the period runs until the end of the next

12 day that is not one of the previously mentioned days.

13 ‘‘(c) The procedures may provide for electronic filing

14 and dissemination of documents and information required

15 under this subchapter and in so providing shall consider

16 the ability of all parties to achieve electronic access to such

17 documents and records.

18 ‘‘(d) The procedures shall address the implementa19 tion of the provisions for payment of costs under section

20 3554(f), including the composition, proof, and calculation

21 of such costs, the special circumstances that make such

22 payment unjust, and what constitutes prompt withdrawal

23 of the protest.

24 ‘‘(e) The Comptroller General may use any authority

25 available under Chapter 7 of this title and this chapter
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1 to verify assertions made by parties in protests under this

2 subchapter.’’.

3 SEC. 145. NONEXCLUSIVITY OF REMEDIES; MATTERS IN4 CLUDED IN AGENCY RECORD.

5 The first sentence of section 3556 of title 31, United

6 States Code, is amended to read as follows: ‘‘This sub7 chapter does not give the Comptroller General exclusive

8 jurisdiction over protests, and nothing contained in this

9 subchapter shall affect the right of any interested party

10 to file a protest with the contracting agency or to file an

11 action in the United States Court of Federal Claims.’’.

12 Subtitle F—Other Related Statutes

13 SEC. 151. DELEGATION.

14 (a) AMENDMENT OF TITLE 10.—Section 2311 of title

15 10, United States Code, is amended to read as follows:

16 ‘‘§ 2311. Delegation

17 ‘‘(a) Unless expressly prohibited by law, the head of

18 an agency may delegate, subject to his direction, to any

19 other officer or official of that agency, any power under

20 this chapter.

21 ‘‘(b) To facilitate the procurement of property and

22 services covered by this chapter by each agency named in

23 section 2303 of this title for any other agency, and to fa24 cilitate joint procurement by those agencies—
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1 ‘‘(1) the head of an agency may, within his

2 agency, delegate functions and assign responsibilities

3 relating to procurement;

4 ‘‘(2) the heads of two or more agencies may by

5 agreement delegate procurement functions and as6 sign procurement responsibilities from one agency to

7 another of those agencies or to an officer or civilian

8 employee of another of those agencies; and

9 ‘‘(3) the heads of two or more agencies may

10 create joint or combined offices to exercise procure11 ment functions and responsibilities.

12 ‘‘(c)(1) The Secretary of Defense shall prescribe reg13 ulations that prohibit each military department participat14 ing in a joint acquisition program approved by the Under

15 Secretary of Defense for Acquisition from terminating or

16 substantially reducing its participation in such program

17 without the approval of the Under Secretary.

18 ‘‘(2) The regulations shall include the following

19 provisions:

20 ‘‘(A) A requirement that, before any such ter21 mination or substantial reduction in participation is

22 approved, the proposed termination or reduction be

23 reviewed by the Joint Requirements Oversight Coun24 cil of the Department of Defense.
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1 ‘‘(B) A provision that authorizes the Under

2 Secretary of Defense for Acquisition to require a

3 military department approved for termination or

4 substantial reduction in participation in a joint ac5 quisition program to continue to provide some or all

6 of the funding necessary for the acquisition program

7 to be continued in an efficient manner.’’.

8 (b) CONFORMING REPEAL.—(1) Section 2308 of title

9 10, United States Code, is repealed.

10 (2) The table of sections at the beginning of chapter

11 137 of such title is amended by striking out the item

12 related to section 2308.

13 SEC. 152. DETERMINATIONS AND DECISIONS.

14 Section 2310 of title 10, United States Code, is

15 amended to read as follows:

16 ‘‘§ 2310. Determinations and decisions

17 ‘‘Determinations and decisions required to be made

18 under this chapter by the head of an agency may be made

19 for an individual purchase or contract or for a class of

20 purchases or contracts except when expressly prohibited

21 under this title. Such determinations or decisions are

22 final.’’.
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1 SEC. 153. UNDEFINITIZED CONTRACTUAL ACTIONS: RE2 STRICTIONS.

3 Section 2326 of title 10, United States Code, is

4 amended—

5 (1) by striking out ‘‘AND EXPENDITURES’’ in

6 the heading of subsection (b);

7 (2) by striking out ‘‘or expended’’ in subsection

8 (b)(1)(B);

9 (3) by striking out ‘‘expend’’ in subsection

10 (b)(2) and inserting in lieu thereof ‘‘obligate’’;

11 (4) by striking out ‘‘expended’’ and ‘‘expend’’

12 and inserting in lieu thereof ‘‘obligated’’ and ‘‘obli13 gate’’, respectively, in subsection (b)(3);

14 (5) by redesignating paragraph (4) in sub15 section (b) as paragraph (5); and

16 (6) by inserting after paragraph (3) in sub17 section (b) the following new paragraph:

18 ‘‘(4) The provisions of this subsection may be

19 waived if the head of the agency determines that

20 waiver is necessary in support of contingency oper21 ations, as defined in section 101(a)(13) of this title,

22 or is otherwise in the best interests of the United

23 States.’’.
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1 SEC. 154. PRODUCTION SPECIAL TOOLING AND PRODUC2 TION SPECIAL TEST EQUIPMENT: CONTRACT

3 TERMS AND CONDITIONS.

4 (a) REPEAL.—Section 2329 of title 10, United States

5 Code, is hereby repealed.

6 (b) TECHNICAL AMENDMENT.—The table of sections

7 at the beginning of chapter 137 of such title is amended

8 by striking out the item related to section 2329.

9 SEC. 155. CONTRACTS: REGULATIONS FOR BIDS.

10 Section 2381 of title 10, United States Code, is

11 amended in subsection (a) by striking out ‘‘The’’ and in12 serting in lieu thereof ‘‘The Secretary of Defense or the’’.

13 SEC. 156. SUPPLIES: IDENTIFICATION OF SUPPLIER AND

14 SOURCES.

15 Paragraph (2) of section 2384(b) of title 10, United

16 States Code, is amended to read as follows:

17 ‘‘(2) Paragraph (1) does not apply to a contract

18 that requires the delivery of supplies that are com19 mercial items, as defined in section 2302(7) of this

20 title.’’.

21 TITLE II—CONTRACT

22 ADMINISTRATION

23 SEC. 201. CONTRACT PAYMENTS.

24 (a) CONTRACT FINANCING.—(1) Subsection (a)(2) of

25 section 2307 of title 10, United States Code, is amended

26 by striking out ‘‘bid’’ before ‘‘solicitations’’.
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1 (2) Subsection (c) of such section is amended by

2 striking out the last sentence and inserting in lieu thereof

3 the following: ‘‘Such lien is paramount to all other liens

4 and is effective on the date the first advance payment is

5 made, regardless of whether the United States has notified

6 the contractor of the lien or taken any other action.

7 (3) Subsection (d) of such section is amended—

8 (A) in the first sentence of paragraph (1)—

9 (i) by striking out ‘‘The Secretary’’ and in10 serting in lieu thereof ‘‘Except as provided in

11 paragraph (4), the Secretary’’; and

12 (ii) by striking out ‘‘commensurate with

13 the work, which meets standards of quality es14 tablished under the contract, that has been ac15 complished.’’ and inserting in lieu thereof ‘‘com16 mensurate with the work that has been accom17 plished and that meets standards of quality es18 tablished under the contract.’’;

19 (B) by redesignating paragraph (3) as para20 graph (4) and amending such paragraph to read as

21 follows:

22 ‘‘(4) This subsection does not apply to contracts

23 awarded using simplified procedures.’’; and

24 (C) by inserting after paragraph (2) the follow25 ing new paragraph (3):
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1 ‘‘(3) When payments have been made for work in

2 progress, the United States shall take title to all work in

3 progress properly allocable or chargeable to the contract.

4 Title shall vest in the United States regardless of any

5 prior or subsequently asserted security interest in the

6 work in progress.’’.

7 (4) Such section is further amended by adding at the

8 end the following new subsection:

9 ‘‘(f) For contracts made by the Department of the

10 Navy, the Secretary of the Navy—

11 ‘‘(1) shall provide that the rate for progress

12 payments on any contract awarded by the Secretary

13 for repair, maintenance, or overhaul of a naval ves14 sel shall be not less than—

15 ‘‘(A) 95 percent, in the case of firms con16 sidered to be small businesses; and

17 ‘‘(B) 90 percent, in the case of all other

18 firms; and

19 ‘‘(2) may advance to private salvage companies

20 such funds as the Secretary considers necessary to

21 provide for the immediate financing of salvage oper22 ations, provided such advances are made on terms

23 the Secretary considers adequate for the protection

24 of the United States.’’.
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1 (b) REPAIR OR MAINTENANCE OF NAVAL VESSELS:

2 PROGRESS PAYMENTS UNDER CERTAIN CONTRACTS.—

3 Section 7312 of title 10, United States Code, is repealed.

4 The table of sections at the beginning of chapter 633 of

5 such title is amended by striking out the item related to

6 section 7312.

7 (c) ADVANCE OF FUNDS FOR SALVAGE OPER8 ATIONS.—Section 7364 of title 10, United States Code,

9 is repealed. The table of sections at the beginning of chap10 ter 637 of such title is amended by striking out the item

11 related to section 7364.

12 (d) PROGRESS PAYMENT FOR WORK DONE; LIEN

13 BASED ON PAYMENT.—Section 7521 of title 10, United

14 States Code, is repealed. The table of sections at the be15 ginning of chapter 645 of such title is amended by striking

16 out the item related to section 7521.

17 SEC. 202. COST PRINCIPLES.

18 (a) ALLOWABLE COSTS.—Section 2324 of title 10,

19 United States Code, is amended—

20 (1) by striking out subsections (e), (f), (g), (i),

21 and (k);

22 (2) by redesignating subsections (a), (b), (c),

23 (d), (h), (j), (l), and (m) as subsections (b), (c), (d),

24 (e), (f), (g), (h), and (i), respectively;
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1 (3) by inserting at the beginning of the section

2 the following new subsection:

3 ‘‘(a) For purposes of this section, the term ‘allowable

4 cost’ means a cost, whether it is direct or indirect, that

5 the Department of Defense reimburses a contractor for

6 carrying out a defense contract. In determining what con7 stitutes a cost, the Department of Defense may use any

8 generally accepted method of determining or estimating

9 costs that is equitable and consistently applied. The allow10 ability of costs shall be determined in accordance with the

11 Federal Acquisition Regulation and the Department of

12 Defense Supplement to the Federal Acquisition

13 Regulation.’’.

14 (4) in subsection (c), as redesignated—

15 (A) by striking out ‘‘subsection (a)’’ in the

16 first paragraph and inserting in lieu thereof

17 ‘‘subsection (b)’’; and

18 (B) by striking out the period at the end

19 of paragraph (2) and inserting in lieu thereof

20 ‘‘, plus interest to be computed as provided by

21 paragraph (1)(B).’’;

22 (5) in subsection (d), as redesignated, by strik23 ing out ‘‘subsection (b)’’ and inserting in lieu thereof

24 ‘‘subsection (c)’’;
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1 (6) in subsection (e), as redesignated, by strik2 ing out ‘‘subsection (a) or (b)—’’ and inserting in

3 lieu thereof ‘‘subsection (b) or (c)—’’;

4 (7) in subsection (g), as redesignated, by strik5 ing out ‘‘United States Claims Court’’ and inserting

6 in lieu thereof ‘‘United States Court of Federal

7 Claims’’; and

8 (8) in subsection (h), as redesignated—

9 (A) in paragraph (2), by striking out

10 ‘‘committees named in paragraph (3)’’ and in11 serting in lieu thereof ‘‘Committees on Armed

12 Services and the Committees on Appropriations

13 of the Senate and the House of Representa14 tives’’;

15 (B) by striking out ‘‘in regulations pre16 scribed under subsection (e) or (f) or in any

17 other regulations of the Department of De18 fense’’; and

19 (C) by striking out paragraph (3).

20 (b) CONTRACT PROFIT CONTROLS DURING EMER21 GENCY PERIODS.—Section 2382 of title 10, United States

22 Code, is repealed. The table of sections at the beginning

23 of chapter 141 of such title is amended by striking out

24 the item related to section 2382.
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1 (c) TRAVEL EXPENSES OF GOVERNMENT CONTRAC2 TORS.—Section 24(a) of the Office of Federal Procure3 ment Policy Act (41 U.S.C. 420) is amended by inserting

4 after ‘‘Under any contract’’ the following: ‘‘requiring the

5 submission of cost or pricing data or the negotiation of

6 final indirect costs’’.

7 SEC. 203. CONSOLIDATION AND REVISION OF AUTHORITY

8 TO EXAMINE RECORDS OF CONTRACTORS.

9 (a) AUTHORITY.—

10 (1) IN GENERAL.—Section 2313 of title 10,

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

12 ‘‘§ 2313. Examination of records of contractor

13 ‘‘(a) AGENCY AUTHORITY.—The head of an agency,

14 acting through an authorized representative—

15 ‘‘(1) is entitled to inspect the plant and audit

16 the records of—

17 ‘‘(A) a contractor performing a cost-reim18 bursement, incentive, time-and-materials, labor19 hour, or price-redeterminable contract, or any

20 combination of such contracts, made by that

21 agency under this chapter; and

22 ‘‘(B) a subcontractor performing any sub23 contract under such a contract or combination

24 of contracts; and
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1 ‘‘(2) shall, for the purpose of evaluating the ac2 curacy, completeness, and currency of cost or pricing

3 data required to be submitted pursuant to section

4 2306a of this title with respect to a contract or sub5 contract, have the right to examine all records of the

6 contractor or subcontractor related to—

7 ‘‘(A) the proposal for the contract or sub8 contract;

9 ‘‘(B) the discussions conducted on the pro10 posal; or

11 ‘‘(C) pricing of the contract or subcontract.

12 ‘‘(b) SUBPOENA POWER.—(1) The Director of the

13 Defense Contract Audit Agency (or any successor agency)

14 may require by subpoena the production of records of a

15 contractor, access to which is provided to the Secretary

16 of Defense by subsection (a).

17 ‘‘(2) Any such subpoena, in the case of contumacy

18 or refusal to obey, shall be enforceable by order of an ap19 propriate United States district court.

20 ‘‘(3) The authority provided by paragraph (1) may

21 not be redelegated.

22 ‘‘(4) The Director (or any successor official) shall

23 submit an annual report to the Secretary of Defense on

24 the exercise of such authority during the preceding year

25 and the reasons why such authority was exercised in any
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1 instance. The Secretary shall forward a copy of each such

2 report to the Committees on Armed Services of the Senate

3 and House of Representatives.

4 ‘‘(c) COMPTROLLER GENERAL AUTHORITY.—(1) Ex5 cept as provided in paragraph (2), each contract awarded

6 after using procedures other than sealed bid procedures

7 shall provide that the Comptroller General and his rep8 resentatives are entitled to examine any records of the

9 contractor, or any of its subcontractors, that directly per10 tain to, and involve transactions relating to, the contract

11 or subcontract.

12 ‘‘(2) Paragraph (1) does not apply to a contract or

13 subcontract with a foreign contractor or foreign sub14 contractor if the head of the agency concerned determines,

15 with the concurrence of the Comptroller General or his

16 designee, that the application of that paragraph to the

17 contract or subcontract would not be in the public interest.

18 However, the concurrence of the Comptroller General or

19 his designee is not required—

20 ‘‘(A) where the contractor or subcontractor is a

21 foreign government or agency thereof or is precluded

22 by the laws of the country involved from making its

23 records available for examination; and

24 ‘‘(B) where the head of the agency determines,

25 after taking into account the price and availability of
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1 the property and services from United States

2 sources, that the public interest would be best served

3 by not applying paragraph (1).

4 ‘‘(d) LIMITATION.—The right of the head of an agen5 cy under subsection (a), and the right of the Comptroller

6 General under subsection (c), with respect to a contract

7 or subcontract shall expire three years after final payment

8 under such contract or subcontract.

9 ‘‘(e) INAPPLICABILITY TO CERTAIN CONTRACTS.—

10 This section is inapplicable with respect to contracts for

11 utility services at rates not exceeding those established to

12 apply uniformly to the public, plus any applicable reason13 able connection charge.

14 ‘‘(f) RECORDS DEFINED.—In this section, the term

15 ‘records’ includes books, documents, accounting proce16 dures and practices, and other data, regardless of type and

17 regardless of whether such items are in written form, in

18 the form of computer data, or in any other form.’’.

19 (2) TECHNICAL AMENDMENT.—The item relat20 ing to such section in the table of sections at the be21 ginning of chapter 137 of title 10, United States

22 Code, is amended to read as follows:

‘‘2313. Examination of records of contractor.’’.

23 (b) REPEAL OF SUPERSEDED PROVISION.—

24 (1) REPEAL.—Section 2406 of title 10, United

25 States Code, is repealed.
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1 (2) TECHNICAL AMENDMENT.—The table of

2 sections at the beginning of chapter 141 of such title

3 is amended by striking out the item relating to sec4 tion 2406.

5 SEC. 204. ADMINISTRATION OF CONTRACT PROVISIONS RE6 LATING TO PRICE, DELIVERY, AND PRODUCT

7 QUALITY.

8 (a) REPEAL OF PROVISION RELATING TO CONTRAC9 TOR GUARANTEES ON MAJOR WEAPON SYSTEMS.—Sec10 tion 2403 of title 10, United States Code, is repealed.

11 (b) TECHNICAL AMENDMENT.—The table of sections

12 at the beginning of chapter 141 of such title is amended

13 by striking out the item related to section 2403.

14 TITLE III—MAJOR SYSTEMS AND

15 COMMERCIAL ACTIVITIES

16 Subtitle A—Major Systems

17 SEC. 301. SELECTED ACQUISITION REPORTS; UNIT COST

18 REPORTS.

19 (a) AMENDMENT OF TITLE 10.—Section 2432 of title

20 10, United States Code, is amended to read as follows:

21 ‘‘§ 2432. Selected Acquisition Reports; unit cost re22 ports

23 ‘‘(a)(1) The Secretary of Defense shall submit to

24 Congress at the end of each fiscal year quarter a report

25 on current major defense acquisition programs. Except as
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1 provided in paragraphs (2) and (3), each such report shall

2 include a status report on each defense acquisition pro3 gram that at the end of such quarter is a major defense

4 acquisition program. Reports under this section shall be

5 known as Selected Acquisition Reports.

6 ‘‘(2) A status report on a major defense acquisition

7 program need not be included in the Selected Acquisition

8 Report for the second, third, or fourth quarter of a fiscal

9 year if such a report was included in a previous Selected

10 Acquisition Report for that fiscal year and during the pe11 riod since that report there has been—

12 ‘‘(A) less than a 15 percent increase in program

13 acquisition unit cost and current procurement unit

14 cost; and

15 ‘‘(B) less than a six-month delay in any pro16 gram schedule milestone shown in the Selected Ac17 quisition Report.

18 ‘‘(3)(A) The Secretary of Defense may waive the re19 quirement for submission of Selected Acquisition Reports

20 for a program for a fiscal year if—

21 ‘‘(i) the program has not entered engineering

22 and manufacturing development;

23 ‘‘(ii) a reasonable cost estimate has not been es24 tablished for such program; and
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•HR 3586 IH

1 ‘‘(iii) the system configuration for such pro2 gram is not well defined.

3 ‘‘(B) The Secretary shall submit to the Committees

4 on Armed Services of the Senate and House of Represent5 atives a written notification of each waiver under subpara6 graph (A) for a program for a fiscal year not later than

7 60 days before the President submits the budget to Con8 gress pursuant to section 1105 of title 31 in that fiscal

9 year.

10 ‘‘(b)(1) Selected Acquisition Reports for the first

11 quarter of a fiscal year shall be known as comprehensive

12 annual Selected Acquisition Reports.

13 ‘‘(2) Selected Acquisition Reports for the second,

14 third, and fourth quarters of a fiscal year shall be known

15 as quarterly Selected Acquisition Reports.

16 ‘‘(3) Each Selected Acquisition Report for the first

17 quarter of a fiscal year shall be designed to provide to

18 the Committees on Armed Services of the Senate and

19 House of Representatives the information such Commit20 tees need to perform their oversight functions. In the in21 terests of consistency and streamlining of reporting, the

22 Secretary of Defense shall include in the Selected Acquisi23 tion Reports such information as is used by the Depart24 ment of Defense to manage major defense acquisition pro25 grams. The Secretary of Defense shall determine the scope
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•HR 3586 IH

1 and form of the items to be included in both the Com2 prehensive Annual and Quarterly Selected Acquisition Re3 port and issue guidelines to ensure consistent reporting

4 procedures. The Secretary of Defense may approve

5 changes in the content of the Selected Acquisition Report

6 if the Secretary provides such Committees with written no7 tification of such changes at least 60 days before the date

8 of the report that incorporates the changes.

9 ‘‘(c) Each comprehensive annual Selected Acquisition

10 Report shall be submitted within 60 days after the date

11 on which the President transmits the Budget to Congress

12 for the following fiscal year, and each Quarterly Selected

13 Acquisition Report shall be submitted within 45 days after

14 the end of the fiscal-year quarter.

15 ‘‘(d) The requirements of this section with respect to

16 a major defense acquisition program shall cease to apply

17 after 90 percent of the items to be delivered to the United

18 States under the program (shown as the total quantity

19 of items to be purchased under the program in the most

20 recent Selected Acquisition Report) have been delivered or

21 90 percent of planned expenditures under the program

22 have been made.

23 ‘‘(e) Total program reporting under this section shall

24 apply to a major defense acquisition program when funds

25 have been appropriated for such and the Secretary of De-
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1 fense has decided to proceed to engineering and manufac2 turing development of such program. Reporting may be

3 limited to the development program as provided by the

4 guidelines of the Secretary of Defense promulgated pursu5 ant to subsection (b)(3) before a decision is made by the

6 Secretary to proceed to engineering and manufacturing

7 development if the Secretary notifies the Committees on

8 Armed Services of the Senate and House of Representa9 tives of the intention to submit a limited report under this

10 subsection not less than 15 days before a report is due

11 under this section.

12 ‘‘(f)(1) The Secretary of Defense shall require the

13 program manager for a major defense acquisition pro14 gram, on a quarterly basis, to submit to the service acqui15 sition executive designated by the Secretary concerned a

16 written report on the unit costs of the program. It shall

17 be submitted not more than 30 calendar days after the

18 end of the quarter. The Secretary of Defense shall issue

19 regulations implementing this requirement.

20 ‘‘(2) When a unit cost report is submitted to the serv21 ice acquisition executive designated by the Secretary con22 cerned under this section with respect to a major defense

23 acquisition program, the service acquisition executive shall

24 determine whether the current program acquisition unit

25 cost for the program has increased 15 percent or more
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1 over the baseline program acquisition unit cost for the pro2 gram.

3 ‘‘(3) When a unit cost report is submitted to the serv4 ice acquisition executive designated by the Secretary con5 cerned under this section with respect to a major defense

6 acquisition program that is a procurement program, the

7 service acquisition executive, in addition to the determina8 tion under paragraph (2), shall determine whether the

9 current procurement unit cost for the program has in10 creased by 15 percent or more over the baseline procure11 ment unit cost for the program.

12 ‘‘(4) If, based upon the service acquisition executive’s

13 determination, the Secretary concerned determines (for

14 the first time since the beginning of the current fiscal

15 year) that the current program acquisition unit cost has

16 increased by 15 percent or more as determined under

17 paragraph (2), or that the current procurement unit cost

18 has increased by 15 percent or more as determined under

19 paragraph (3), the Secretary shall notify Congress in writ20 ing of such determination and of the increase with respect

21 to such program within 45 days after the date of that re22 port and shall include in such notification the date on

23 which the determination was made.’’.

24 (b) TECHNICAL AMENDMENT.—The table of sections

25 at the beginning of chapter 144 of title 10, United States
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1 Code, is amended by striking out the item relating to sec2 tion 2432 and inserting in lieu thereof the following:

‘‘Sec. 2432. Selected Acquisition Reports; unit cost reports.’’.

3 SEC. 302. UNIT COST REPORTS.

4 (a) REPEAL.—Section 2433 of title 10, United States

5 Code, is repealed.

6 (b) TECHNICAL AMENDMENT.—The table of sections

7 at the beginning of chapter 144 of such title is amended

8 by striking out the item relating to section 2433.

9 SEC. 303. INDEPENDENT COST ESTIMATES; OPERATIONAL

10 MANPOWER REQUIREMENTS.

11 Section 2434 of title 10, United States Code, is

12 amended to read as follows:

13 ‘‘§ 2434. Independent cost estimates; operational man14 power requirements

15 ‘‘(a) REQUIREMENT FOR APPROVAL.—The Secretary

16 of Defense may not approve the engineering and manufac17 turing development, or the production and deployment, of

18 a major defense acquisition program unless an independ19 ent estimate of the cost of the program, and a manpower

20 estimate, has been considered by the Secretary.

21 ‘‘(b) REGULATIONS.—The Secretary of Defense shall

22 promulgate regulations governing the content and submis23 sion of an independent estimate of the cost of the program

24 and a manpower estimate. The regulations shall require

25 that—
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1 ‘‘(1) the independent estimate shall—

2 ‘‘(A) be prepared by an office or other en3 tity that is not under the supervision, direction,

4 or control of the military department, defense

5 agency, or other component of the Department

6 of Defense that is directly responsible for carry7 ing out the development or acquisition of the

8 program, and

9 ‘‘(B) include all costs of development, pro10 curement, and operations and support, without

11 regard to funding source or management con12 trol; and

13 ‘‘(2) the manpower estimate shall properly con14 sider, prior to the engineering and manufacturing

15 development and production and deployment phases

16 of the program, the total endstrengths for personnel

17 required to operate, maintain, train, and support the

18 program upon full operational deployment.’’.

19 SEC. 304. ENHANCED PROGRAM STABILITY.

20 Section 2435 of title 10, United States Code, is

21 amended to read as follows:

22 ‘‘§ 2435. Enhanced program stability

23 ‘‘(a) BASELINE DESCRIPTION REQUIREMENT.—(1)

24 The Secretary of a military department shall establish a
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1 baseline description for each major defense acquisition

2 program under the jurisdiction of such Secretary.

3 ‘‘(2) The baseline shall include sufficient parameters

4 to describe the cost, schedule, and performance of such

5 major defense acquisition program.

6 ‘‘(3) No amounts appropriated or otherwise made

7 available to the Department of Defense for carrying out

8 a major defense acquisition program may be obligated

9 without an approved baseline description unless such obli10 gation is specifically approved by the Under Secretary of

11 Defense for Acquisition.

12 ‘‘(4) A baseline description for a major defense acqui13 sition program shall be established—

14 ‘‘(A) before such program enters engineering

15 manufacturing and development; and

16 ‘‘(B) before such program enters production

17 and deployment.

18 ‘‘(b) REGULATIONS.—The Secretary of Defense shall

19 promulgate regulations governing—

20 ‘‘(1) the content of baselines;

21 ‘‘(2) the submission of deviation reports by pro22 gram managers to the Secretary of the military de23 partment concerned and the Under Secretary of De24 fense for Acquisition; and
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1 ‘‘(3) procedures for departmental review of de2 viation reports and submission and approval of a re3 vised baseline.’’.

4 SEC. 305. MAJOR PROGRAMS: COMPETITIVE PROTOTYPING.

5 (a) REPEAL.—Section 2438 of title 10, United States

6 Code, is repealed.

7 (b) TECHNICAL AMENDMENT.—The table of sections

8 at the beginning of chapter 144 of such title is amended

9 by striking out the item relating to section 2438.

10 SEC. 306. MAJOR PROGRAMS: COMPETITIVE ALTERNATIVE

11 SOURCES.

12 (a) REPEAL.—Section 2439 of title 10, United States

13 Code, is repealed.

14 (b) TECHNICAL AMENDMENT.—The table of sections

15 at the beginning of chapter 144 of such title is amended

16 by striking out the item relating to section 2439.

17 Subtitle B—Testing Statutes

18 SEC. 311. REPEAL OF TESTING REQUIREMENT FOR

19 WHEELED OR TRACKED VEHICLES.

20 (a) REPEAL.—Section 2362 of title 10, United States

21 Code, is repealed.

22 (b) TECHNICAL AMENDMENT.—The table of sections

23 at the beginning of chapter 139 of such title is amended

24 by striking out the item relating to section 2362.
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1 SEC. 312. MAJOR SYSTEMS AND MUNITIONS PROGRAMS:

2 SURVIVABILITY AND LETHALITY TESTING.

3 (a) SUBSTITUTION OF VULNERABILITY TESTING FOR

4 SURVIVABILITY TESTING.—Section 2366 of title 10, Unit5 ed States Code, is amended—

6 (1) by striking out ‘‘survivability’’ each place it

7 appears in subsections (a)(1)(A), (a)(2)(A), (c)(1),

8 (d), (e)(3), and (e)(6)(A) and inserting in lieu there9 of ‘‘vulnerability’’; and

10 (2) in subsection (b)(1), by striking out ‘‘Sur11 vivability’’ and inserting in lieu thereof ‘‘Vulner12 ability’’.

13 (b) LESS THAN FULL-UP TESTING AUTHORIZED.—

14 Section 2366(e)(3) of such title is amended by inserting

15 after ‘‘configured for combat,’’ the following: ‘‘or, if the

16 covered system is a high value system, by firing such mu17 nitions at components, subsystems, and subassemblies (or

18 realistic replicas or surrogates) together with performing

19 design analyses, modeling and simulation, and analysis of

20 combat data,’’.

21 (c) WAIVER AUTHORITY AFTER FULL-SCALE DE22 VELOPMENT BEGINS.—Section 2366(c)(1) of such title is

23 amended in the first sentence by striking out ‘‘, before

24 the system enters full-scale development,’’.

25 (d) REFERENCE TO CONGRESSIONAL COMMIT26 TEES.—Section 2366(d) of such title is amended in the
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1 first sentence by striking out ‘‘defense committees of Con2 gress (as defined in section 2362(e)(3) of this title)’’ and

3 inserting in lieu thereof ‘‘Committees on Armed Services

4 and on Appropriations of the Senate and House of Rep5 resentatives’’.

6 SEC. 313. OPERATIONAL TEST AND EVALUATION OF DE7 FENSE ACQUISITION PROGRAMS.

8 Section 2399(b) of title 10, United States Code, is

9 amended—

10 (1) by redesignating paragraph (5) as para11 graph (6); and

12 (2) by inserting after paragraph (4) the follow13 ing new paragraph (5):

14 ‘‘(5)(A) The Secretary of Defense may, for a particu15 lar major defense acquisition program, prescribe and apply

16 different operational test and evaluation procedures than

17 those provided under subsection (a) and paragraphs (1)

18 through (3) of this subsection if the Secretary first trans19 mits to Congress—

20 ‘‘(i) a certification that such testing would be

21 unreasonably expensive and impracticable, cause un22 warranted delay, or be unnecessary because of the

23 acquisition strategy for that system; and

24 ‘‘(ii) a description of the actions taken to en25 sure that the system will be operationally effective
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1 and suitable when the system is introduced into the

2 field.

3 ‘‘(B) Alternative operational test and evaluation pro4 cedures prescribed pursuant to subparagraph (A) may not

5 be used to proceed with a major defense acquisition pro6 gram beyond low-rate initial production.’’.

7 SEC. 314. LOW-RATE INITIAL PRODUCTION OF NEW SYS8 TEMS.

9 (a) EXCEPTION FOR STRATEGIC DEFENSE MISSILE

10 SYSTEMS.—Subsection (c) of section 2400 of title 10,

11 United States Code, is amended—

12 (1) in paragraph (1), by striking out ‘‘and mili13 tary satellite programs’’ and inserting in lieu thereof

14 ‘‘, military satellite programs, and strategic defense

15 missile programs’’;

16 (2) in paragraph (2), by striking out ‘‘and mili17 tary satellite program’’ and inserting in lieu thereof

18 ‘‘, military satellite program, and strategic defense

19 missile program’’; and

20 (3) by striking out the caption of such sub21 section and inserting in lieu thereof ‘‘LOW-RATE

22 INITIAL PRODUCTION OF NAVAL VESSEL, SAT23 ELLITE, AND STRATEGIC DEFENSE MISSILE PRO24 GRAMS.—’’.
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1 (b) SUBMISSION OF TEST AND EVALUATION MASTER

2 PLAN.—Paragraph (2) of such section is amended by

3 striking out subparagraph (B) and inserting in lieu there4 of the following:

5 ‘‘(B) any test and evaluation master plan pre6 pared for that program;’’.

7 Subtitle C—DOD Commercial and

8 Industrial Activities

9 SEC. 321. FACTORIES AND ARSENALS: MANUFACTURE AT.

10 (a) CONSOLIDATED SECTION.—Chapter 148 of title

11 10, United States Code, is amended by adding at the end

12 the following:

13 ‘‘§ 2538. Factories and arsenals: manufacture at

14 ‘‘(a) The Secretary of Defense or secretary of a mili15 tary department may have supplies needed for the Depart16 ment of Defense and its components made in factories or

17 arsenals owned by the United States.

18 ‘‘(b) The Secretary of Defense or secretary of a mili19 tary department may abolish any United States arsenal

20 that the Secretary considers unnecessary.’’.

21 (b) CONFORMING REPEALS AND TECHNICAL AMEND22 MENTS.—(1) Sections 4532 and 9532 of title 10, United

23 States Code, are hereby repealed.

24 (2) The table of sections at the beginning of chapter

25 433 of such title is amended by striking out the item relat-
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1 ing to section 4532. The table of sections at the beginning

2 of chapter 933 of such title is amended by striking out

3 the item relating to section 9532.

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

5 148 is amended by adding at the end the following new

6 item:

‘‘2538. Factories and arsenals: manufacture at.’’.

7 Subtitle D—Industrial Base and

8 Manufacturing Technology Laws

9 SEC. 331. POLICY OBJECTIVES RELATING TO DEFENSE

10 INTERNATIONAL TRADE.

11 Section 2501 of title 10, United States Code, is

12 amended by adding at the end the following new sub13 section:

14 ‘‘(d) POLICY OBJECTIVES RELATING TO DEFENSE

15 INTERNATIONAL TRADE.—It is the policy of Congress

16 that the United States attain the national defense tech17 nology and industrial base objectives set forth in this sec18 tion by fully coordinating domestic defense acquisition

19 practices with defense trade and cooperation, under chap20 ter 173 of this title, and foreign military sales and assist21 ance.’’.
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1 Subtitle E—Miscellaneous

2 SEC. 341. OBLIGATION OF FUNDS: LIMITATION.

3 Section 2202 of title 10, United States Code, is

4 amended by striking out subsection (a) and inserting in

5 lieu thereof the following:

6 ‘‘(a) The Secretary of Defense shall issue regulations

7 to be followed by all agencies of the Department of De8 fense for the procurement, production, warehousing, or

9 distribution of supplies and related functions.’’.

10 SEC. 342. REPEAL OF LIMITATION ON LENGTH OF CON11 TRACTS.

12 Section 9081 of the Department of Defense Appro13 priations Act, 1990 (Public Law 101–165) is repealed.

14 TITLE IV—SMALL PURCHASE

15 PROCEDURES AND SMALL

16 BUSINESS PROVISIONS

17 SEC. 401. USE OF SMALL PURCHASE PROCEDURES FOR

18 PROCUREMENTS CONDUCTED THROUGH

19 FEDERAL ACQUISITION COMPUTER NET20 WORK SYSTEM; IMPLEMENTATION OF SYS21 TEM.

22 (a) INCREASE IN SMALL PURCHASE THRESHOLD.—

23 (1) IN GENERAL.—Section 4 of the Office of

24 Federal Procurement Policy Act (41 U.S.C. 403) is

25 amended—
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1 (A) in paragraph (10) by striking ‘‘and’’

2 after the semicolon; and

3 (B) by striking paragraph (11) and insert4 ing the following:

5 ‘‘(11) The term ‘small purchase threshold’

6 means—

7 ‘‘(A) $25,000, except as provided in sub8 paragraphs (B) and (C);

9 ‘‘(B) $50,000, in the case of a procure10 ment—

11 ‘‘(i) that is conducted by a procuring

12 activity that has implemented the

13 FACNET system in accordance with the

14 requirements of section 29(f)(1)(A) and

15 (B)(i); and

16 ‘‘(ii) in which notices of solicitation

17 for all contracting opportunities are issued

18 through the FACNET system; or

19 ‘‘(C) $100,000, in the case of a procure20 ment—

21 ‘‘(i) that is conducted by a procuring

22 activity that has implemented the

23 FACNET system in accordance with the

24 requirements of section 29(f)(1)(A) and

25 (B)(i), (ii), (iii), and (iv); and
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1 ‘‘(ii) in which—

2 ‘‘(I) notices of solicitation for all

3 contracting opportunities are issued

4 through the FACNET system,

5 ‘‘(II) responses to solicitations

6 and requests for information may be

7 submitted to the procuring activity

8 through such system,

9 ‘‘(III) information pursuant to

10 those requests is available through

11 such system,

12 ‘‘(IV) orders are made through

13 such system, and

14 ‘‘(V) public notice of awards is

15 provided through such system; and

16 ‘‘(12) the term ‘FACNET system’ means such

17 system developed by the Administrator under section

18 29.’’.

19 (2) EFFECTIVE DATE.—The amendments made

20 by paragraph (1) shall take effect on, and apply to

21 solicitations made and orders placed on or after, the

22 expiration of the 60-day period beginning on the

23 date of issuance in final form of revisions to the

24 Federal Acquisition Regulation under subsection (b).
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1 (3) INTERIM RULE.—Notwithstanding para2 graphs (1) and (2), during the 5-year period begin3 ning on the date of the issuance in final form of re4 visions to the Federal Acquisition Regulation under

5 subsection (b), procuring activities shall continue to

6 report, pursuant to section 19(d) of the Office of

7 Federal Procurement Policy Act (41 U.S.C. 417(d)),

8 procurement awards with a dollar value of at least

9 $10,000, but less than $100,000, in conformity with

10 the procedures for the reporting of a contract award

11 in excess of $25,000 in effect on May 24, 1993.

12 (b) IMPROVED SMALL PURCHASE PROCEDURES.—

13 (1) REVISION OF FAR.—The Federal Acquisi14 tion Regulation shall be revised to ensure that—

15 (A) procuring activities of executive agen16 cies comply with the requirements of section

17 8(a) of the Small Business Act (15 U.S.C.

18 637(a)) and section 2323 of title 10, United

19 States Code, in awarding any contract with a

20 price exceeding $25,000;

21 (B) the authority under part 13.106(a)(1)

22 of the Federal Acquisition Regulation (48

23 C.F.R. 13.106(a)(1)), as in effect on May 19,

24 1993, to make purchases without securing com-
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1 petitive quotations does not apply to any pur2 chases with a price exceeding $2,500; and

3 (C) procuring activities of executive agen4 cies comply with the requirements of section

5 15(j) of the Small Business Act (15 U.S.C.

6 644), relating to the small business reserve, in

7 awarding any contract with a price below the

8 small purchase threshold.

9 (2) NOTICE REQUIRED REGARDING ORAL SO10 LICITATIONS.—Section 18(a)(1)(B) of the Office of

11 Federal Procurement Policy Act (41 U.S.C.

12 416(a)(1)(B)) is amended in the matter preceding

13 clause (i)—

14 (A) by inserting ‘‘(including orally or by

15 any other means)’’ after ‘‘intending to solicit’’;

16 and

17 (B) by inserting after ‘‘ten days’’ the fol18 lowing: ‘‘before contract award (except for any

19 procurement in which public notice of contract

20 opportunities for the acquisition of property or

21 services by a procuring activity of an executive

22 agency is performed through the FACNET sys23 tem),’’.

24 (3) PARTICIPATION BY ALL RESPONSIBLE

25 SMALL BUSINESS CONCERNS.—Section 18 of the Of-
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1 fice of Federal Procurement Policy Act (41 U.S.C.

2 416) is amended by adding at the end the following:

3 ‘‘(e) An executive agency intending to solicit offers

4 for a contract for which a notice of solicitation is required

5 to be posted under subsection (a)(1)(B) shall ensure that

6 all small business concerns are permitted to respond to

7 solicitations for the contract within the time specified in

8 the solicitations.’’.

9 (c) PERFORMANCE TEST AND REPORT.—

10 (1) PERFORMANCE TEST.—The Comptroller

11 General of the United States shall monitor and col12 lect data on the results of the amendments made by

13 subsection (a)(1), to ascertain the effects of the

14 amendments on the participation of small business

15 concerns (including small business concerns owned

16 and controlled by socially and economically disadvan17 taged individuals) in procurement awards of less

18 than $100,000 and the benefits and detriments, if

19 any, to the buying activities of the various Executive

20 agencies.

21 (2) DATA TO BE COLLECTED.—Data collected

22 under paragraph (1) shall include data regarding

23 whether the amendments made by subsection (a)(1)

24 have improved the acquisition process in terms of re25 duced paperwork, financial or other savings to the
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1 Government, and any increase in the number of con2 tractors participating in the contracting process.

3 (3) PERIOD.—Data shall be collected for pur4 poses of paragraph (1) during the period beginning

5 with the first full fiscal year quarter after the effec6 tive date of the amendments made by subsection

7 (a)(1) and ending September 30, 1996.

8 (4) REPORT.—By March 1, 1997, the Comp9 troller General of the United States shall report to

10 the Committee on Government Operations of the

11 House of Representatives, the Committee on Govern12 mental Affairs of the Senate, and the Committees on

13 Small Business of the House of Representatives and

14 the Senate on the effects of the increase in the small

15 purchase threshold made by the amendments made

16 by subsection (a)(1).

17 (d) FUNCTIONS OF ADMINISTRATOR FOR FEDERAL

18 PROCUREMENT POLICY.—Section 6(d) of the Office of

19 Federal Procurement Policy Act (41 U.S.C. 405(d)) is

20 amended—

21 (1) in paragraph (7) by striking ‘‘and’’ after

22 the semicolon at the end; and

23 (2) by redesignating paragraph (8) as para24 graph (10) and inserting after paragraph (7) the fol25 lowing:
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1 ‘‘(8) developing policies, in consultation with

2 the Administrator of the Small Business Administra3 tion, that ensure that small businesses and small

4 businesses owned and controlled by socially and eco5 nomically disadvantaged persons are provided with

6 the maximum practicable opportunities to partici7 pate in procurements that are conducted below the

8 small purchase threshold; and

9 ‘‘(9) developing policies that will promote

10 achievement of goals for participation by small busi11 nesses and small businesses owned and controlled by

12 socially and economically disadvantaged individ13 uals.’’.

14 (e) IMPLEMENTATION OF ELECTRONIC DATA INTER15 CHANGE FOR PROCUREMENT INFORMATION.—The Office

16 of Federal Procurement Policy Act (41 U.S.C. 401 et seq.)

17 is further amended by adding after section 28 the follow18 ing:

19 ‘‘SEC. 29. ELECTRONIC INTERCHANGE OF PROCUREMENT

20 INFORMATION.

21 ‘‘(a) IN GENERAL.—The Administrator, in consulta22 tion with the Office of Information and Regulatory Af23 fairs, shall establish a program and assign a program

24 manager for, and provide overall direction of policy and

25 leadership in, the development, coordination, installation,
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1 operation, and completion of implementation by executive

2 agencies, by not later than 5 years after the date of the

3 enactment of the Defense Acquisition Reform Act of 1993,

4 of a Federal Acquisition Computer Network system. Such

5 system shall be known as the ‘FACNET system’. The

6 FACNET system shall involve enabling technology and

7 procurement electronic data interchange transaction sets.

8 The enabling technology shall consist of a computer net9 work, supporting data bases, and interfaces that inter10 connect Government automated systems to the network.

11 The procurement electronic data interchange transaction

12 sets shall facilitate the electronic interchange of standard

13 procurement information between Government and indus14 try automated acquisition systems.

15 ‘‘(b) FUNCTIONS OF ADMINISTRATOR OF GENERAL

16 SERVICES.—The Administrator of General Services shall

17 do the following:

18 ‘‘(1) Provide technical support for the

19 FACNET system by doing the following:

20 ‘‘(A) Coordinate with the Administrator to

21 facilitate the efficient and widespread imple22 mentation of the FACNET system by executive

23 agencies. This shall include interfacing the

24 FACNET system to other systems, such as the
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1 Government bank card and Electronic Funds

2 Transfer payment systems.

3 ‘‘(B) Assist the Director of the National

4 Institute of Standards and Technology in the

5 development and application of appropriate

6 Federal Information Processing Standards.

7 ‘‘(C) Prepare a technical plan for coordi8 nating the design, development, implementation,

9 operation, and maintenance of the FACNET

10 system. The plan shall include roles and respon11 sibilities, major milestones, cost estimates, and

12 performance requirements.

13 ‘‘(2) Ensure compliance with section 111 of the

14 Federal Property and Administrative Services Act of

15 1949 in the implementation of the FACNET system

16 by executive agencies, including by limiting the scope

17 of delegations under subsection (a) of that section.

18 ‘‘(3) Evaluate progress by executive agencies in

19 implementing the FACNET system, and recommend

20 changes in that implementation to the program

21 manager assigned by the Administrator under sub22 section (a).

23 ‘‘(4) Submit to the Congress, on the date that

24 is one year after the date of the enactment of the

25 Defense Acquisition Reform Act of 1993 and on that
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1 date in each of the 5 years thereafter, a report on

2 the overall progress by the executive branch of the

3 Government and by each executive agency in imple4 menting the FACNET system.

5 ‘‘(c) IMPLEMENTATION OF FACNET SYSTEM BY EX6 ECUTIVE AGENCIES.—

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

8 agency shall cooperate with the Administrator and

9 the Administrator of General Services to implement

10 the FACNET system for the agency.

11 ‘‘(2) DESIGNATION OF AGENCY PROGRAM MAN12 AGER.—

13 ‘‘(A) DESIGNATION.—The head of each ex14 ecutive agency shall designate a program man15 ager to implement the FACNET system for the

16 agency and otherwise implement this section.

17 ‘‘(B) FUNCTIONS.—A program manager

18 designated under this paragraph for an execu19 tive agency shall—

20 ‘‘(i) report directly to the senior pro21 curement executive designated for the

22 agency under section 16(3);

23 ‘‘(ii) be responsible for the timely and

24 cost-effective implementation of the

25 FACNET system for the agency in a man-
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1 ner that is responsive to the procurement

2 needs of the agency, national business

3 needs, and the public’s interest in open

4 government;

5 ‘‘(iii) develop plans for phasing-in the

6 implementation of the FACNET system

7 for the procuring activities of the executive

8 agency and phasing-out local network sys9 tems that perform comparable procure10 ment functions;

11 ‘‘(iv) participate in the interagency

12 development of standard procurement elec13 tronic data interchange transaction sets;

14 ‘‘(v) using the resources of the agen15 cy, develop and implement a standardized

16 and comprehensive training program for

17 agency employees in the use and manage18 ment of the FACNET system; and

19 ‘‘(vi) in carrying out this section, com20 ply with guidelines issued by the Adminis21 trator under this section and program di22 rectives issued by the Administrator of

23 General Services under section 111 of the

24 Federal Property and Administrative Serv25 ices Act of 1949.
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1 ‘‘(d) FUNCTIONS OF NATIONAL INSTITUTE OF

2 STANDARDS AND TECHNOLOGY.—The Director of the Na3 tional Institute of Standards and Technology shall—

4 ‘‘(1) ensure that the FACNET system complies

5 with Federal Information Processing Standards;

6 ‘‘(2) issue additional standards for the

7 FACNET system as necessary; and

8 ‘‘(3) establish tests to facilitate the aims of this

9 section and support policies established by the Ad10 ministrator under this section.

11 ‘‘(e) FUNCTIONS OF SMALL BUSINESS ADMINISTRA12 TION.—The Administrator of the Small Business Adminis13 tration shall—

14 ‘‘(1) develop plans to coordinate and promote

15 the use of the FACNET system by small businesses,

16 that incorporate outreach efforts by the Small Busi17 ness Administration, agency Offices of Small and

18 Disadvantaged Business and Utilization, Small Busi19 ness Development Centers, and other appropriate or20 ganizations; and

21 ‘‘(2) use the resources of the Office of Procure22 ment Assistance and Office of Advocacy to develop

23 a standardized and comprehensive training program

24 to train small business concerns in the use of the

25 FACNET system, through Small Business Adminis-
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1 tration district offices and Small Business Develop2 ment Centers.

3 ‘‘(f) FACNET SYSTEM COMPATIBILITY STAND4 ARDS.—

5 ‘‘(1) IN GENERAL.—The Administrator, in con6 sultation with the Office of Information and Regu7 latory Affairs, the Administrator of General Serv8 ices, the Administrator of the Small Business Ad9 ministration, and the Director of the National Insti10 tute of Standards and Technology, shall prescribe

11 policies for ensuring convenient and universal access

12 to the FACNET system, and shall develop a set of

13 system compatibility standards for each FACNET

14 system interface and FACNET system support data

15 base. The system compatibility standards shall speci16 fy the functional capabilities of each FACNET sys17 tem interface, and the minimum set of data elements

18 of each FACNET system support data base. The

19 system compatibility standards shall ensure that the

20 following FACNET system functions are satisfac21 torily performed by each executive agency, executive

22 agency component, or procuring activity:

23 ‘‘(A) Provision of widespread public notice

24 of solicitations for contract opportunities issued

25 by the agency, component, or activity and of or-
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1 ders to be made by the agency, component, or

2 activity below the small purchase threshold.

3 ‘‘(B) Allowing private users to electroni4 cally—

5 ‘‘(i) selectively access and review so6 licitations issued by the agency, compo7 nent, or activity;

8 ‘‘(ii) respond to solicitations issued by

9 the agency, component, or activity;

10 ‘‘(iii) receive orders from the agency,

11 component, or activity; and

12 ‘‘(iv) access information on contract

13 awards made by the agency, component, or

14 activity.

15 ‘‘(2) BINDING STANDARDS.—The FACNET

16 system interface and FACNET system support data

17 base of each procuring activity shall comply with the

18 system compatibility standards developed under

19 paragraph (1), except to the extent the Adminis20 trator has waived application of such standards to

21 the activity under paragraph (3).

22 ‘‘(3) WAIVERS.—(A) The Administrator may, in

23 writing, waive the application of any system compat24 ibility standard to a procuring activity if the Admin25 istrator—
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1 ‘‘(i) determines that compliance with the

2 standard by the procuring activity would ad3 versely affect the accomplishment of the mission

4 of the activity or cause a major adverse finan5 cial impact on the activity which is not offset by

6 Government-wide savings; and

7 ‘‘(ii) approves a plan, developed by the pro8 curing activity, for complying with the standard

9 by not later than 1 year after the issuance of

10 the waiver.

11 ‘‘(B) The authority of the Administrator to

12 issue waivers under this paragraph may not be dele13 gated.

14 ‘‘(C) A waiver under this paragraph may be is15 sued by the Administrator only after receipt of a re16 quest for the waiver submitted by the program man17 ager designated under subsection (c)(2)(A) for the

18 procuring activity for which the waiver is requested.

19 ‘‘(D) The Administrator shall promptly submit

20 a notice of each waiver under this paragraph to the

21 Committee on Government Operations of the House

22 of Representatives and the Committee on Govern23 mental Affairs of the Senate, and promptly publish

24 the notice in the Federal Register.’’.

25 (f) TECHNICAL CORRECTIONS.—
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1 (1) Section 18(d) of the Office of Federal Pro2 curement Policy Act (41 U.S.C. 416) is amended by

3 striking ‘‘(e)’’ in the first sentence and inserting

4 ‘‘(a)’’.

5 (2) Section 18(a)(1) of the Office of Federal

6 Procurement Policy Act (41 U.S.C. 416(a)(1)) is

7 amended—

8 (A) in subparagraph (A) in the matter fol9 lowing clause (ii) by striking ‘‘notice’’ and in10 serting ‘‘notice of solicitation’’; and

11 (B) in subparagraph (B) in the matter

12 preceding clause (i) by striking ‘‘a notice of so13 licitation described in subsection (f)’’ and in14 serting ‘‘a notice of solicitation described in

15 subsection (b)’’.

16 SEC. 402. SMALL BUSINESS RESERVATION.

17 Section 15(j) of the Small Business Act (15 U.S.C.

18 644(j)) is amended to read as follows:

19 ‘‘(j) Each contract for the procurement of goods and

20 services which has an anticipated value not in excess of

21 the small purchase threshold and which is subject to small

22 purchase procedures prescribed by section 2304(g) of title

23 10, United States Code, or section 303(g) of the Federal

24 Property and Administrative Services Act of 1949 (41

25 U.S.C. 253(g)) shall be reserved exclusively for small busi-
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1 ness concerns unless the contracting officer is unable to

2 obtain offers from two or more small business concerns

3 that are competitive with market prices and in terms of

4 quality and delivery of the goods or services being pur5 chased. Nothing in this subsection shall be construed as

6 precluding the award of contracts with a value not in ex7 cess of the small purchase threshold under the authority

8 of section 8(a) of this Act, section 2323 of title 10, United

9 States Code, or section 712 of the Business Opportunity

10 Development Reform Act of 1988 (Public Law 100–656;

11 15 U.S.C. 644 note). In utilizing small purchase proce12 dures, contracting officers shall, wherever circumstances

13 permit, choose a method of payment which minimizes pa14 perwork and facilitates prompt payment to contractors.’’.

15 SEC. 403. EXEMPTIONS FOR CONTRACTS NOT IN EXCESS OF

16 THE SMALL PURCHASE THRESHOLD.

17 The Office of Federal Procurement Policy Act (41

18 U.S.C. 401 et seq.), as amended by section 401(e), is fur19 ther amended by adding at the end the following new sec20 tion:

21 ‘‘SEC. 30. SMALL PURCHASE THRESHOLD.

22 ‘‘(a) EXEMPTION FROM CERTAIN LAWS.—Purchases

23 made and contracts awarded with a value that is not in

24 excess of the small purchase threshold shall be exempt

25 from the following laws:
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1 ‘‘(1) Section 2313 of title 10, United States

2 Code.

3 ‘‘(2) Section 2393(d) of title 10, United States

4 Code.

5 ‘‘(3) Section 2631 of title 10, United States

6 Code.

7 ‘‘(b) EXEMPTION FROM CONTRACT CLAUSE RE8 QUIREMENT.—Unless otherwise determined by the Admin9 istrator, for contracts awarded with a value that is not

10 in excess of the small purchase threshold and which are

11 subject to small purchase procedures prescribed by section

12 2304(g) of title 10, United States Code or section 303(g)

13 of the Federal Property and Administrative Services Act

14 (41 U.S.C. 253(g)), no contract clause shall be required

15 to implement the following laws:

16 ‘‘(1) Section 2207 of title 10, United States

17 Code.

18 ‘‘(2) Section 2306(b) of title 10, United States

19 Code.

20 ‘‘(3) Section 3741 of the Revised Statutes (41

21 U.S.C. 22).

22 ‘‘(c) SPECIAL RULE RELATING TO EXEMPTIONS.—

23 A provision of law hereafter enacted shall not be construed

24 as applicable to purchases of property or services not in

25 excess of the small purchase threshold unless that provi-
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1 sion of law specifically refers to this section and specifi2 cally states that such provision of law modifies or super3 sedes the provisions of this section.’’.

4 SEC. 404. SMALL BUSINESS AMENDMENTS.

5 Subparagraph (A) of section 8(a)(1) of the Small

6 Business Act (15 U.S.C. 637(a)(1)) is amended in the

7 first full sentence—

8 (1) by inserting ‘‘(i)’’ after ‘‘in his discretion’’;

9 (2) by striking out the period at the end of such

10 sentence and inserting in lieu thereof ‘‘, or’’; and

11 (3) by adding at the end of such sentence the

12 following: ‘‘(ii) to award such procurement contract

13 directly to a socially and economically disadvantaged

14 small business designated by the Administration pro15 vided that the small business does not request that

16 the award be made through the Administration.’’.

17 SEC. 405. NOTIFICATION OF SMALL BUSINESS CONCERNS

18 IN LOCALITY OF PROCURING AGENCY.

19 Section 18 of the Office of Federal Procurement Pol20 icy Act (41 U.S.C. 416), as amended by section 401(b)(3),

21 is further amended by adding at the end the following:

22 ‘‘(f) NOTIFICATION OF LOCAL SMALL BUSINESS

23 CONCERNS.—An executive agency intending to solicit of24 fers for a contract for which a notice of solicitation is re25 quired to be posted under subsection (a)(1)(B) shall en-
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1 sure that small business concerns located in the jurisdic2 tion of the Small Business Administration District Office

3 nearest to the agency, and other small business concerns

4 in the State in which the agency is located, are sent no5 tices of the solicitation.’’.

6 TITLE V—INTELLECTUAL

7 PROPERTY

8 SEC. 501. DEPARTMENT OF DEFENSE ACQUISITION OF IN9 TELLECTUAL PROPERTY RIGHTS.

10 (a) AUTHORIZED ACQUISITIONS.—Section 2386 of

11 title 10, United States Code, is amended by striking out

12 paragraphs (3) and (4) and inserting in lieu thereof the

13 following:

14 ‘‘(3) Technical data and computer software.

15 ‘‘(4) Releases for past infringement of patents

16 or copyrights or for unauthorized use of technical

17 data or computer software.’’.

18 (b) REDUNDANT PROVISION.—

19 (1) REPEAL.—Section 7210 of title 10, United

20 States Code, is repealed.

21 (2) TECHNICAL AMENDMENT.—The table of

22 sections at the beginning of chapter 631 of such title

23 is amended by striking out the item relating to sec24 tion 7210.
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1 TITLE VI—STANDARDS OF

2 CONDUCT

3 Subtitle A—Ethics Provisions

4 SEC. 601. AMENDMENTS TO OFFICE OF FEDERAL PROCURE5 MENT POLICY ACT.

6 (a) APPLICABILITY OF CERTIFICATION REQUIRE7 MENT TO CONTRACTS IN EXCESS OF $500,000.—Sub8 section (e)(7)(A) of section 27 of the Office of Federal

9 Procurement Policy Act (41 U.S.C. 423) is amended by

10 striking out ‘‘$100,000’’ and inserting in lieu thereof

11 ‘‘$500,000’’.

12 (b) APPLICABILITY OF RESTRICTIONS RESULTING

13 FROM PROCUREMENT ACTIVITIES OF PROCUREMENT OF14 FICIALS TO CONTRACTS IN EXCESS OF $500,000.—Sub15 section (f) of such section is amended—

16 (1) by adding at the end of paragraph (1) the

17 following new sentence: ‘‘This subsection applies

18 only to contracts, extensions, and modifications in

19 excess of $500,000.’’; and

20 (2) in paragraph (2)(A), by striking out

21 ‘‘$100,000’’ and inserting in lieu thereof

22 ‘‘$500,000’’.
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1 SEC. 602. REPEAL OF SUPERSEDED AND OBSOLETE LAWS.

2 (a) REPEAL.—The following sections of title 10,

3 United States Code, are repealed: Sections 2207, 2397,

4 2397a, 2397b, 2397c, and 2408.

5 (b) TECHNICAL AMENDMENTS.—Part IV of subtitle

6 A of title 10, United States Code, is amended—

7 (1) in the table of sections at the beginning of

8 chapter 131, by striking out the item relating to sec9 tion 2207; and

10 (2) in the table of sections for chapter 141, by

11 striking out the items relating to sections 2397,

12 2397a, 2397b, 2397c, and 2408.

13 Subtitle B—Additional

14 Amendments

15 SEC. 611. CONTRACTING FUNCTIONS PERFORMED BY FED16 ERAL PERSONNEL.

17 (a) AMENDMENT OF OFPP ACT.—The Office of Fed18 eral Procurement Policy Act, as amended by sections

19 401(e) and 403, is further amended by adding at the end

20 the following new section:

21 ‘‘CONTRACTING FUNCTIONS PERFORMED BY FEDERAL

22 PERSONNEL

23 ‘‘SEC. 31. (a) LIMITATION ON PAYMENT FOR ADVI24 SORY AND ASSISTANCE SERVICES.—(1) No person who is

25 not an employee may be paid by an agency for services

26 to conduct evaluations or analyses of any aspect of a pro-
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1 posal submitted for an acquisition unless employees with

2 adequate training and capabilities to perform such evalua3 tions and analyses are not readily available within the

4 agency or any other Federal agency.

5 ‘‘(2) In the administration of this subsection, the

6 head of each agency shall determine the standards of ade7 quate training and capability of employees to conduct such

8 acquisitions.

9 ‘‘(b) DELEGATION OF PROCUREMENT AUTHORITY.—

10 With respect to an acquisition that is subject to section

11 111 of the Federal Property and Administrative Services

12 Act of 1949 (40 U.S.C. 759), the Administrator of Gen13 eral Services may not issue a delegation of procurement

14 authority for the acquisition unless the request for the del15 egation of procurement authority includes a determination

16 of the contracting agency that—

17 ‘‘(1) such agency has and will utilize employees

18 within the agency, or employees available from an19 other agency, who are adequately trained and capa20 ble of conducting evaluations and analyses of pro21 posals submitted for such an acquisition; or

22 ‘‘(2)(A) such agency does not have employees

23 within the agency who are adequately trained and

24 capable of conducting evaluations and analyses of

25 proposals submitted for such an acquisition; and
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1 ‘‘(B) adequately trained and capable employees

2 are not readily available from other agencies in ac3 cordance with regulations promulgated by the Fed4 eral Acquisition Regulatory Council.

5 ‘‘(c) DEFINITION.—For purposes of this section, the

6 term ‘employee’ has the meaning given such term in sec7 tion 2105 of title 5, United States Code.’’.

8 (b) REQUIREMENT FOR GUIDANCE AND REGULA9 TIONS.—

10 (1) GUIDANCE AND REGULATIONS REQUIRED.—

11 Not later than 90 days after the date of the enact12 ment of this Act, the Federal Acquisition Regulatory

13 Council established by section 25(a) of the Office of

14 Federal Procurement Policy Act (41 U.S.C. 421(a))

15 shall—

16 (A) review part 37 of title 48 of the Code

17 of Federal Regulations as it relates to the use

18 of advisory and assistance services; and

19 (B) provide guidance and promulgate regu20 lations regarding—

21 (i) what actions Federal agencies are

22 required to take to determine whether ex23 pertise is readily available within the Fed24 eral Government before contracting for ad-
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1 visory and technical services to conduct ac2 quisitions; and

3 (ii) the manner in which Federal em4 ployees with expertise may be shared with

5 agencies needing expertise for such acquisi6 tions.

7 (2) DEFINITION.—In paragraph (1), the term

8 ‘‘employee’’ has the meaning given such term in sec9 tion 2105 of title 5, United States Code.

10 SEC. 612. REPEAL OF EXECUTED REQUIREMENT FOR

11 STUDY AND REPORT.

12 Section 17 of the Office of Federal Procurement Pol13 icy Act (41 U.S.C. 415) is repealed.

14 SEC. 613. WAITING PERIOD FOR SIGNIFICANT CHANGES

15 PROPOSED FOR ACQUISITION REGULATIONS.

16 Section 22(a) of the Office of Federal Procurement

17 Policy Act (41 U.S.C. 418b) is amended—

18 (1) by striking out ‘‘30 days’’ and inserting in

19 lieu thereof ‘‘60 days’’; and

20 (2) by adding at the end the following: ‘‘Not21 withstanding the preceding sentence, such a policy,

22 regulation, procedure, or form may take effect ear23 lier than 60 days after the publication date when

24 there are compelling circumstances for the earlier

25 effective date, but in no event may that effective
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1 date be less than 30 days after the publication

2 date.’’.

3 TITLE VII—DEFENSE TRADE AND

4 COOPERATION

5 SEC. 701. INTERNATIONAL COOPERATIVE AGREEMENTS.

6 (a) DEFENSE INTERNATIONAL AGREEMENTS.—

7 (1) TERMINOLOGY REVISIONS.—Section 2531

8 of title 10, United States Code, is amended—

9 (A) in the subsection captions for sub10 sections (a) and (c), by striking out ‘‘MOUS

11 AND RELATED’’ and inserting in lieu thereof

12 ‘‘INTERNATIONAL’’;

13 (B) in subsection (a), by striking out ‘‘pro14 posed memorandum of understanding, or any

15 existing or proposed agreement related to a

16 memorandum of understanding,’’ in the matter

17 above paragraph (1) and inserting in lieu there18 of ‘‘proposed international agreement, including

19 a memorandum of understanding,’’;

20 (C) by striking out ‘‘memorandum of un21 derstanding or related agreement’’ each place it

22 appears and inserting in lieu thereof ‘‘inter23 national agreement’’;

24 (D) in subsection (b), by striking out

25 ‘‘memorandum or related agreement’’ each
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1 place it appears in the second sentence and in2 serting in lieu thereof ‘‘international agree3 ment’’; and

4 (E) in subsection (c)—

5 (i) by striking out ‘‘A’’ after ‘‘AGREE6 MENTS.—’’ and inserting in lieu thereof

7 ‘‘An’’; and

8 (ii) by striking out ‘‘memorandum or

9 agreement’’ and inserting in lieu thereof

10 ‘‘international agreement’’.

11 (2) EXPANDED SCOPE OF AGREEMENTS.—Sec12 tion 2531(a) of title 10, United States Code, is

13 amended by striking out ‘‘research, development, or

14 production’’ in the matter above paragraph (1) and

15 inserting in lieu thereof ‘‘research, development, pro16 duction, or logistics support’’.

17 (3) TECHNICAL AMENDMENTS.—

18 (A) SECTION HEADING.—The heading of

19 section 2531 of title 10, United States Code, is

20 amended to read as follows:

21 ‘‘§ 2531. Defense international agreements’’.

22 (B) TABLE OF SECTIONS.—The item relat23 ing to such section in the table of sections at

24 the beginning of subchapter V of chapter 148

25 of such title is amended to read as follows:

‘‘2531. Defense international agreements.’’.
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1 (b) REPEAL OF UNNECESSARY AUTHORITY.—

2 (1) REPEAL.—Section 7344 of title 10, United

3 States Code, is repealed.

4 (2) TECHNICAL AMENDMENT.—The table of

5 sections at the beginning of chapter 635 of such title

6 is amended by striking out the item relating to sec7 tion 7344.

8 SEC. 702. ACQUISITION, CROSS-SERVICING AGREEMENTS,

9 AND STANDARDIZATION.

10 (a) LIMITED WAIVER OF RESTRICTIONS ON AC11 CRUED REIMBURSABLE LIABILITIES AND CREDITS FOR

12 CONTINGENCY OPERATIONS.—Section 2347 of title 10,

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

14 following new subsection:

15 ‘‘(c) The Secretary of Defense may waive the restric16 tions in subsections (a) and (b) for a period not to exceed

17 180 days upon a written determination that the armed

18 forces are involved in a contingency operation or that in19 volvement of the armed forces in a contingency operation

20 is imminent. Upon making such a determination, the Sec21 retary shall transmit a copy of the determination to the

22 Committees on Armed Services of the Senate and House

23 of Representatives.’’.

24 (b) COMMUNICATIONS SUPPORT.—Section 2350f of

25 title 10, United States Code, is amended—
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1 (1) by redesignating subsection (d) as sub2 section (e); and

3 (2) by inserting after subsection (c) the follow4 ing new subsection:

5 ‘‘(d)(1) Nothing in this section shall be construed to

6 limit the authority of the Secretary of Defense, without

7 a formal bilateral agreement or multilateral arrangement,

8 to furnish communications support and related supplies

9 to, or receive communications support and related supplies

10 from, an allied country in accordance with this subsection.

11 ‘‘(2) The Secretary of Defense may furnish or receive

12 such support and supplies on a reciprocal basis for a pe13 riod not to exceed 90 days—

14 ‘‘(A) in order to meet emerging operational re15 quirements of the United States and the allied coun16 try; or

17 ‘‘(B) incident to a joint military exercise with

18 the allied country.

19 ‘‘(3) If interconnection of communication circuits is

20 maintained for joint or multilateral defense purposes

21 under the authority of this subsection, the costs of main22 taining such circuits may be allocated among the various

23 users.’’.
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1 TITLE VIII—COMMERCIAL ITEM

2 ACQUISITION

3 SEC. 801. PROCUREMENT OF COMMERCIAL AND

4 NONDEVELOPMENTAL ITEMS.

5 (a) ADDITION OF CHAPTER TO TITLE 10.—(1) Part

6 IV of subtitle A of title 10, United States Code, is amend7 ed by adding at the end the following new chapter:

8 ‘‘CHAPTER 174—PROCUREMENT OF

9 COMMERCIAL ITEMS

‘‘Sec.

‘‘2951. Policy.

‘‘2952. Acquisition of commercial items.

‘‘2953. Precedence; relationship to other laws.

‘‘2954. Specific acquisition procedures and restrictions.

‘‘2955. Pricing; remedy for inaccurate documentation; audit; nonexclusivity.

10 ‘‘§ 2951. Policy.

11 ‘‘To further achieve effective, efficient, and economic

12 administration of the Federal procurement system, the

13 Secretary of Defense shall, in accordance with applicable

14 laws, Government-wide policies and regulations, and good

15 business practices, implement a preference for the acquisi16 tion of commercial items by—

17 ‘‘(1) whenever practicable, stating specifications

18 in solicitation for bids and proposals in terms such

19 that bidders and offerors are enabled and encour20 aged to offer to supply commercial items in response

21 to agency solicitations;
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1 ‘‘(2) reducing impediments to the acquisition of

2 commercial items in agency procurement policies,

3 practices, and procedures not required by law; and

4 ‘‘(3) requiring training of appropriate personnel

5 in the acquisition of commercial items.

6 ‘‘§ 2952. Acquisition of commercial items.

7 ‘‘(a) MARKET RESEARCH.—Before soliciting bids or

8 proposals for a contract for property or services, the Sec9 retary of Defense or the Secretary of the military depart10 ment concerned shall conduct market research, appro11 priate to the circumstances, to determine whether the

12 needs of the department can be met by the acquisition of

13 commercial items.

14 ‘‘(b) ADVOCATE FOR ACQUISITION OF COMMERCIAL

15 ITEMS.—

16 ‘‘(1) ESTABLISHMENT.—There is established in

17 the Department of Defense the position of Advocate

18 for the Acquisition of Commercial Items (hereinafter

19 in this subsection referred to as the ‘Advocate’).

20 ‘‘(2) FUNCTIONS.—The Advocate shall—

21 ‘‘(A) monitor compliance by the Depart22 ment with the preference required under sub23 section (a) for the acquisition of commercial

24 items;
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1 ‘‘(B) make recommendations and proposals

2 to the Secretary of Defense regarding the re3 form of procurement statutes and regulations to

4 implement that preference; and

5 ‘‘(C) report to the Secretary of Defense on

6 the prospective effect of proposed statutes and

7 regulations on the acquisition of commercial

8 items.

9 ‘‘§ 2953. Precedence; relationship to other laws

10 ‘‘(a) EXEMPTIONS FROM PRESENT LAW.—In the ac11 quisition of commercial items or commercial components

12 by the Department of Defense, the following sections of

13 this title do not apply:

14 ‘‘(1) Section 2207.

15 ‘‘(2) Section 2306(b).

16 ‘‘(3) Section 2313.

17 ‘‘(4) Section 2384(b).

18 ‘‘(5) Section 2393.

19 ‘‘(6) Section 2397c.

20 ‘‘(7) Section 2408.

21 ‘‘(8) Section 2410b.

22 ‘‘(9) Section 2631.

23 ‘‘(b) PRINCIPLE OF CONSTRUCTION WITH FUTURE

24 LAWS.—Notwithstanding any other provision of law en25 acted after the date of the enactment of this chapter, no
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1 provision of this chapter or of any other law expressly ref2 erenced in this chapter shall be held to have been amended

3 by another law unless that law specifically refers to and

4 amends such provision of this chapter or such provision

5 of law expressly referenced in this chapter.

6 ‘‘(c) RELATION TO SIMPLIFIED PROCEDURES.—

7 When commercial items are being procured by the Govern8 ment, the provisions of this chapter, and regulations is9 sued under this chapter, shall take precedence over regula10 tions issued pursuant to section 2304(g) of this title.

11 Nothing in this section shall affect the set-aside for small

12 businesses established by section 15(j) of the Small Busi13 ness Act (15 U.S.C. 644(j)).

14 ‘‘(d) SET-ASIDES PRESERVED.—Nothing in this

15 chapter shall prevent the Secretary of Defense from re16 stricting the award of prime contracts for commercial

17 items to any source as may from time to time be pre18 scribed or permitted by law.

19 ‘‘§ 2954. Specific acquisition procedures and restric20 tions

21 ‘‘(a) RESTRICTION TO FIXED PRICE BASIS.—The

22 Department of Defense shall purchase commercial items

23 and components acquired under this chapter on a firm,

24 fixed price basis or on a fixed price with economic price

25 adjustment basis.
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1 ‘‘(b) ECONOMIC PRICE ADJUSTMENT.—To the extent

2 practical, contracts for commercial items shall not require

3 contract performance for a term longer than customary

4 industry practice for the product being acquired. Contract5 ing officers may consider the use of economic price adjust6 ment provisions if an extended period of performance can7 not be avoided.

8 ‘‘(c) REQUIREMENTS FOR COMMERCIAL AND

9 NONDEVELOPMENTAL ITEMS.—The Secretary of Defense

10 shall ensure that, to the maximum extent practicable—

11 ‘‘(1) requirements of the Department of De12 fense with respect to a procurement of supplies are

13 stated in terms of—

14 ‘‘(A) functions to be performed;

15 ‘‘(B) performance required; or

16 ‘‘(C) essential physical characteristics;

17 ‘‘(2) such requirements are defined so that

18 commercial or nondevelopmental items and commer19 cial components may be procured to fulfill such re20 quirements;

21 ‘‘(3) such requirements are fulfilled through the

22 procurement of commercial or nondevelopmental

23 items and commercial components; and

24 ‘‘(4) prior to developing new specifications, the

25 Department conducts market research to determine
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1 whether commercial or nondevelopmemental items

2 are available or could be modified to meet agency

3 needs.

4 ‘‘(d) CONTRACT QUALITY REQUIREMENTS.—(1) To

5 the maximum extent practicable, regulations issued under

6 this chapter shall permit contractors providing commercial

7 items to use their existing quality assurance systems and

8 quality programs.

9 ‘‘(2) To the maximum extent practicable, regulations

10 issued under this chapter shall prohibit Government in11 spection or test of commercial items prior to tender of

12 those items by the contractor for acceptance by the Gov13 ernment.

14 ‘‘§ 2955. Pricing; remedy for inaccurate documenta15 tion; audit; nonexclusivity

16 ‘‘(a) REQUIREMENT FOR DETERMINATION OF PRICE

17 REASONABLENESS.—(1) When a procurement for a com18 mercial item or component by the Government or its con19 tractors, using other than sealed bid procedures, has been

20 based on adequate price competition, or when the price

21 agreed on is based on prices of items or components sold

22 in sufficient quantities to the general public to establish

23 a market price, the contracting officer shall presume that

24 the price contained in the most advantageous evaluated

25 offer (price and all other factors considered) received in
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1 response to a solicitation, or a price based on established

2 market prices, is fair and reasonable unless the contract3 ing officer has information that the price is not fair and

4 reasonable. Prior to the award of a contract where price

5 is based on market prices, the contracting officer shall

6 make reasonable efforts to establish the currency and ac7 curacy of such prices.

8 ‘‘(2) When paragraph (1) is not applicable, the con9 tracting officer shall use price analysis to determine

10 whether or not the price is fair and reasonable.

11 ‘‘(3) When required by the contracting officer prior

12 to award or contract definitization, the contractor shall

13 promptly furnish documentation adequate to demonstrate

14 the market price of the item or items or otherwise needed

15 to establish a fair and reasonable price. All documentation

16 received from an offeror, if not otherwise in the public do17 main and if requested by the offeror and marked as con18 fidential, shall be treated by the Government as confiden19 tial and exempt from disclosure to the extent permitted

20 by section 552 of title 5.

21 ‘‘(4) If the contracting officer determines under para22 graph (1) or (2) that the price is fair and reasonable, no

23 cost or pricing data may be required under the provisions

24 of section 2306a of this title.
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1 ‘‘(b) GOVERNMENT’S REMEDY FOR INACCURATE

2 DOCUMENTATION.—When documentation is submitted

3 pursuant to subsection (a)(3), the Government shall be en4 titled to a reduction in price, and the return of any over5 payment, with interest thereon, if an offeror knowingly or

6 negligently submits materially inaccurate or misleading

7 documentation in support of a contract or modification,

8 the contracting officer relies on such documentation in

9 reaching a determination that a price is reasonable, and

10 because of such reliance the price significantly exceeds

11 that which would otherwise have been accepted. For pur12 poses of applying this subsection, a contracting officer will

13 be rebuttably presumed to have relied upon all material

14 documentation supplied by an offeror.

15 ‘‘(c) GOVERNMENT’S RIGHT TO AUDIT.—The United

16 States shall have the right to audit all documentation pro17 vided by an offeror under subsection (b) and all books and

18 records of the offeror directly relating to such documenta19 tion, except that, if the offeror has made no representation

20 as to the completeness of the documentation supplied, the

21 United States shall have no right to audit for complete22 ness. The audit right created by this subsection shall ex23 pire one year after the date of award of the contract or

24 the date of the modification of a contract with respect to

25 which documentation was provided. When contract price
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1 is established under this section, the Government shall

2 have no audit rights other than those set out in this sub3 section.

4 ‘‘(d) NON-EXCLUSIVITY.—The Government’s rights

5 and remedies available in this chapter are in addition to

6 those otherwise provided by law.’’.

7 (2) The tables of chapters at the beginning of subtitle

8 A of title 10, United States Code, and at the beginning

9 of part IV of such subtitle are each amended by inserting

10 after the item relating to chapter 173 the following new

11 item:

‘‘174. Procurement of Commercial Items ................................. 2951’’.

12 (b) REGULATIONS AND SIMPLIFIED FORM CON13 TRACTS.—

14 (1) REVISION OF FAR.—Unless otherwise spe15 cifically provided in this Act, not later than 180

16 days after the date of the enactment of this Act, the

17 Federal Acquisition Regulation issued under section

18 25(c) of the Office of Federal Procurement Policy

19 Act (41 U.S.C. 421(c)) shall be revised to implement

20 the amendments made by this section.

21 (2) SIMPLIFIED UNIFORM CONTRACT.—(A)(i)

22 The revision of the Federal Acquisition Regulation

23 under paragraph (1) shall include issuance of one or

24 more simplified uniform contracts for the acquisition

25 of commercial items by the Department of Defense
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1 and shall require that such simplified uniform con2 tract or contracts be used for the acquisition of com3 mercial items to the maximum extent practicable.

4 The uniform contract or contracts shall include

5 only—

6 (I) those contract clauses that are required

7 to implement provisions of law applicable to

8 such an acquisition; and

9 (II) those contract clauses that are deter10 mined to be consistent with standard commer11 cial practice and appropriate for inclusion in

12 such contracts.

13 (ii) In addition to the clauses described under

14 clause (i), contracts for the acquisition of commer15 cial items may include such clauses as are essential

16 for the protection of the Federal Government’s inter17 est in—

18 (I) a particular contract, as determined in

19 writing by the contracting officer for such con20 tract; or

21 (II) a class of contracts, as determined by

22 the Secretary of Defense or Secretary of the

23 military department concerned, in consultation

24 with the Administrator for Federal Procure25 ment Policy.
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1 (iii) Contracts for the acquisition of commercial

2 items may not include any clause other than those

3 clauses authorized under clause (i) or (ii).

4 (B)(i) Except as provided in clause (ii), a prime

5 contractor under a Department of Defense contract

6 for the acquisition of commercial items may be re7 quired to include in subcontracts under such con8 tract only those contract clauses that are required to

9 implement provisions of law applicable to such sub10 contracts.

11 (ii) In addition to the clauses described under

12 clause (i), a contractor under a Department of De13 fense contract for the acquisition of commercial

14 items may be required to include in a subcontract

15 under such contract such clauses as are essential for

16 the protection of the Federal Government’s interest

17 in—

18 (I) a particular subcontract, as determined

19 in writing by the contracting officer for such

20 contract; or

21 (II) a class of subcontracts, as determined

22 by the Secretary of Defense or Secretary of the

23 military department concerned, in consultation

24 with the Administrator for Federal Procure25 ment Policy.
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1 (iii) The Department of Defense may not re2 quire a contractor for the acquisition of commercial

3 items to include in a subcontract for that acquisition

4 any clause other than those clauses authorized under

5 clause (i) or (ii).

6 (C) Notwithstanding subparagraphs (A) and

7 (B) of this paragraph, the Department of Defense

8 may use uniform contract clauses developed under

9 paragraphs (2) and (3) of section 824(b) of the Na10 tional Defense Authorization Act for Fiscal Years

11 1990 and 1991 (10 U.S.C. 2325 note; Public Law

12 101–189) until September 30, 1995.

13 (3) WARRANTIES.—The Federal Acquisition

14 Regulation shall require that, to the maximum ex15 tent practicable, the Department of Defense shall

16 take advantage of warranties offered by commercial

17 contractors and use such warranties for the repair

18 and replacement of commercial items.

19 (4) MARKET ACCEPTANCE.—The Federal Ac20 quisition Regulation shall direct the Department of

21 Defense to require, where appropriate and in accord22 ance with criteria prescribed in the regulations,

23 offerors to demonstrate in their offers that products

24 being offered have—
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1 (A)(i) achieved a level of commercial mar2 ket acceptance necessary to indicate that the

3 products are suitable for the Department’s use;

4 or

5 (ii) been satisfactorily supplied under cur6 rent or recent contracts for the same or similar

7 requirements; and

8 (B) otherwise meet the product descrip9 tion, specifications, or other criteria prescribed

10 by the public notice and solicitation.

11 (5) PAST PERFORMANCE.—The Federal Acqui12 sition Regulation shall provide guidance to the De13 partment of Defense on the use of past performance

14 of products and sources as a factor in award deci15 sions.

16 TITLE IX—EFFECTIVE DATE

17 SEC. 901. EFFECTIVE DATE.

18 Except as otherwise provided in this Act, this Act and

19 the amendments made by this Act shall take effect on the

20 date of the enactment of this Act.

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