H. R. 1107 

One Hundred Eleventh Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Tuesday, 

the fifth day of January, two thousand and ten 

An Act 

To enact certain laws relating to public contracts as title 41, United States Code, 

‘‘Public Contracts’’. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. TABLE OF CONTENTS. 

The table of contents for this Act is as follows: 

Sec. 1. Table of contents. 

Sec. 2. Purpose; conformity with original intent. 

Sec. 3. Enactment of Title 41, United States Code. 

Sec. 4. Conforming amendment. 

Sec. 5. Conforming cross-references. 

Sec. 6. Transitional and savings provisions. 

Sec. 7. Repeals. 

SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT. 

(a) PURPOSE.—The purpose of this Act is to enact certain laws 

relating to public contracts as title 41, United States Code, ‘‘Public 

Contracts’’. 

(b) CONFORMITY WITH ORIGINAL INTENT.—In the codification of 

laws by this Act, the intent is to conform to the understood policy, 

intent, and purpose of Congress in the original enactments, with 

such amendments and corrections as will remove ambiguities, contradictions, and other imperfections, in accordance with section 

205(c)(1) of House Resolution No. 988, 93d Congress, as enacted 

into law by Public Law 93–554 (2 U.S.C. 285b(1)). 

SEC. 3. ENACTMENT OF TITLE 41, UNITED STATES CODE. 

Certain general and permanent laws of the United States, related 

to public contracts, are revised, codified, and enacted as title 41, 

United States Code, ‘‘Public Contracts’’, as follows: 

TITLE 41—PUBLIC CONTRACTS 

Subtitle Sec. 

I. FEDERAL PROCUREMENT POLICY ................................................ 101 

II. OTHER ADVERTISING AND CONTRACT PROVISIONS ............. 6101 

III. CONTRACT DISPUTES ......................................................................... 7101 

IV. MISCELLANEOUS .................................................................................. 8101 

Subtitle I—Federal Procurement Policy 

DIVISION A—GENERAL

Chapter Sec. 

1. Definitions ................................................................................................. 101 
H. R. 1107—2 

DIVISION B—OFFICE OF FEDERAL PROCUREMENT POLICY

11. Establishment of Office and Authority and Functions of Administrator.1101 

13. Acquisition Councils .............................................................................. 1301 

15. Cost Accounting Standards .................................................................. 1501 

17. Agency Responsibilities and Procedures .......................................... 1701 

19. Simplified Acquisition Procedures ..................................................... 1901 

21. Restrictions on Obtaining and Disclosing Certain Information 2101 

23. Miscellaneous ........................................................................................... 2301 

DIVISION C—PROCUREMENT

31. General ....................................................................................................... 3101 

33. Planning and Solicitation ..................................................................... 3301 

35. Truthful Cost or Pricing Data ............................................................. 3501 

37. Awarding of Contracts ........................................................................... 3701 

39. Specific Types of Contracts .................................................................. 3901 

41. Task and Delivery Order Contracts ................................................... 4101 

43. Allowable Costs ........................................................................................ 4301 

45. Contract Financing ................................................................................. 4501 

47. Miscellaneous ........................................................................................... 4701 

DIVISION A—GENERAL

CHAPTER 1—DEFINITIONS 

SUBCHAPTER I—SUBTITLE DEFINITIONS 

Sec. 

101. Administrator. 

102. Commercial component. 

103. Commercial item. 

104. Commercially available off-the-shelf item. 

105. Component. 

106. Federal Acquisition Regulation. 

107. Full and open competition. 

108. Item and item of supply. 

109. Major system. 

110. Nondevelopmental item. 

111. Procurement. 

112. Procurement system. 

113. Responsible source. 

114. Standards. 

115. Supplies. 

116. Technical data. 

SUBCHAPTER II—DIVISION B DEFINITIONS 

131. Acquisition. 

132. Competitive procedures. 

133. Executive agency. 

134. Simplified acquisition threshold. 

SUBCHAPTER III—DIVISION C DEFINITIONS 

151. Agency head. 

152. Competitive procedures. 

153. Simplified acquisition threshold for contract in support of humanitarian or 

peacekeeping operation. 

SUBCHAPTER I—SUBTITLE DEFINITIONS 

§ 101. Administrator 

In this subtitle, the term ‘‘Administrator’’ means the Administrator for Federal Procurement Policy appointed under section 1102 

of this title. 

§ 102. Commercial component 

In this subtitle, the term ‘‘commercial component’’ means a component that is a commercial item. 
H. R. 1107—3 

§ 103. Commercial item 

In this subtitle, the term ‘‘commercial item’’ means— 

(1) an item, other than real property, that— 

(A) is of a type customarily used by the general public 

or by nongovernmental entities for purposes other than 

governmental purposes; and 

(B) has been sold, leased, or licensed, or offered for sale, 

lease, or license, to the general public; 

(2) an item that— 

(A) evolved from an item described in paragraph (1) 

through advances in technology or performance; and 

(B) is not yet available in the commercial marketplace 

but will be available in the commercial marketplace in 

time to satisfy the delivery requirements under a Federal 

Government solicitation; 

(3) an item that would satisfy the criteria in paragraph 

(1) or (2) were it not for— 

(A) modifications of a type customarily available in the 

commercial marketplace; or 

(B) minor modifications made to meet Federal Government requirements; 

(4) any combination of items meeting the requirements of 

paragraph (1), (2), (3), or (5) that are of a type customarily 

combined and sold in combination to the general public; 

(5) installation services, maintenance services, repair services, training services, and other services if— 

(A) those services are procured for support of an item 

referred to in paragraph (1), (2), (3), or (4), regardless 

of whether the services are provided by the same source 

or at the same time as the item; and 

(B) the source of the services provides similar services 

contemporaneously to the general public under terms and 

conditions similar to those offered to the Federal Government; 

(6) services offered and sold competitively, in substantial 

quantities, in the commercial marketplace based on established 

catalog or market prices for specific tasks performed or specific 

outcomes to be achieved and under standard commercial terms 

and conditions; 

(7) any item, combination of items, or service referred to 

in paragraphs (1) to (6) even though the item, combination 

of items, or service is transferred between or among separate 

divisions, subsidiaries, or affiliates of a contractor; or 

(8) a nondevelopmental item if the procuring agency determines, in accordance with conditions in the Federal Acquisition 

Regulation, that the item was developed exclusively at private 

expense and has been sold in substantial quantities, on a 

competitive basis, to multiple State and local governments. 

§ 104. Commercially available off-the-shelf item 

In this subtitle, the term ‘‘commercially available off-the-shelf 

item’’— 

(1) means an item that— 

(A) is a commercial item (as described in section 103(1) 

of this title); 

(B) is sold in substantial quantities in the commercial 

marketplace; and 
H. R. 1107—4 

(C) is offered to the Federal Government, without modification, in the same form in which it is sold in the commercial marketplace; but 

(2) does not include bulk cargo, as defined in section 40102(4) 

of title 46, such as agricultural products and petroleum products. 

§ 105. Component 

In this subtitle, the term ‘‘component’’ means an item supplied 

to the Federal Government as part of an end item or of another 

component. 

§ 106. Federal Acquisition Regulation 

In this subtitle, the term ‘‘Federal Acquisition Regulation’’ means 

the regulation issued under section 1303(a)(1) of this title. 

§ 107. Full and open competition 

In this subtitle, the term ‘‘full and open competition’’, when used 

with respect to a procurement, means that all responsible sources 

are permitted to submit sealed bids or competitive proposals on 

the procurement. 

§ 108. Item and item of supply 

In this subtitle, the terms ‘‘item’’ and ‘‘item of supply’’— 

(1) mean an individual part, component, subassembly, 

assembly, or subsystem integral to a major system, and other 

property which may be replaced during the service life of the 

system, including spare parts and replenishment spare parts; 

but 

(2) do not include packaging or labeling associated with shipment or identification of an item. 

§ 109. Major system 

(a) IN GENERAL.—In this subtitle, the term ‘‘major system’’ means 

a combination of elements that will function together to produce 

the capabilities required to fulfill a mission need. These elements 

may include hardware, equipment, software, or a combination of 

hardware, equipment, and software, but do not include construction 

or other improvements to real property. 

(b) SYSTEM DEEMED TO BE MAJOR SYSTEM.—A system is deemed 

to be a major system if— 

(1) the Department of Defense is responsible for the system 

and the total expenditures for research, development, testing, 

and evaluation for the system are estimated to exceed 

$75,000,000 (based on fiscal year 1980 constant dollars) or 

the eventual total expenditure for procurement exceeds 

$300,000,000 (based on fiscal year 1980 constant dollars); 

(2) a civilian agency is responsible for the system and total 

expenditures for the system are estimated to exceed the greater 

of $750,000 (based on fiscal year 1980 constant dollars) or 

the dollar threshold for a major system established by the 

agency pursuant to Office of Management and Budget (OMB) 

Circular A–109, entitled ‘‘Major Systems Acquisitions’’; or 

(3) the head of the agency responsible for the system designates the system a major system. 

§ 110. Nondevelopmental item 

In this subtitle, the term ‘‘nondevelopmental item’’ means— 
H. R. 1107—5 

(1) a commercial item; 

(2) a previously developed item of supply that is in use 

by a department or agency of the Federal Government, a State 

or local government, or a foreign government with which the 

United States has a mutual defense cooperation agreement; 

(3) an item of supply described in paragraph (1) or (2) that 

requires only minor modification or modification of the type 

customarily available in the commercial marketplace to meet 

the requirements of the procuring department or agency; or 

(4) an item of supply currently being produced that does 

not meet the requirements of paragraph (1), (2), or (3) solely 

because the item is not yet in use. 

§ 111. Procurement 

In this subtitle, the term ‘‘procurement’’ includes all stages of 

the process of acquiring property or services, beginning with the 

process for determining a need for property or services and ending 

with contract completion and closeout. 

§ 112. Procurement system 

In this subtitle, the term ‘‘procurement system’’ means the 

integration of the procurement process, the professional development of procurement personnel, and the management structure 

for carrying out the procurement function. 

§ 113. Responsible source 

In this subtitle, the term ‘‘responsible source’’ means a prospective 

contractor that— 

(1) has adequate financial resources to perform the contract 

or the ability to obtain those resources; 

(2) is able to comply with the required or proposed delivery 

or performance schedule, taking into consideration all existing 

commercial and Government business commitments; 

(3) has a satisfactory performance record; 

(4) has a satisfactory record of integrity and business ethics; 

(5) has the necessary organization, experience, accounting 

and operational controls, and technical skills, or the ability 

to obtain the organization, experience, controls, and skills; 

(6) has the necessary production, construction, and technical 

equipment and facilities, or the ability to obtain the equipment 

and facilities; and 

(7) is otherwise qualified and eligible to receive an award 

under applicable laws and regulations. 

§ 114. Standards 

In this subtitle, the term ‘‘standards’’ means the criteria for 

determining the effectiveness of the procurement system by measuring the performance of the various elements of the system. 

§ 115. Supplies 

In this subtitle, the term ‘‘supplies’’ has the same meaning as 

the terms ‘‘item’’ and ‘‘item of supply’’. 

§ 116. Technical data 

In this subtitle, the term ‘‘technical data’’— 

(1) means recorded information (regardless of the form or 

method of the recording) of a scientific or technical nature 
H. R. 1107—6 

(including computer software documentation) relating to supplies procured by an agency; but 

(2) does not include computer software or financial, administrative, cost or pricing, or management data or other information incidental to contract administration. 

SUBCHAPTER II—DIVISION B DEFINITIONS 

§ 131. Acquisition 

In division B, the term ‘‘acquisition’’— 

(1) means the process of acquiring, with appropriated 

amounts, by contract for purchase or lease, property or services 

(including construction) that support the missions and goals 

of an executive agency, from the point at which the requirements of the executive agency are established in consultation 

with the chief acquisition officer of the executive agency; and 

(2) includes— 

(A) the process of acquiring property or services that 

are already in existence, or that must be created, developed, 

demonstrated, and evaluated; 

(B) the description of requirements to satisfy agency 

needs; 

(C) solicitation and selection of sources; 

(D) award of contracts; 

(E) contract performance; 

(F) contract financing; 

(G) management and measurement of contract performance through final delivery and payment; and 

(H) technical and management functions directly related 

to the process of fulfilling agency requirements by contract. 

§ 132. Competitive procedures 

In division B, the term ‘‘competitive procedures’’ means procedures under which an agency enters into a contract pursuant to 

full and open competition. 

§ 133. Executive agency 

In division B, the term ‘‘executive agency’’ means— 

(1) an executive department specified in section 101 of title 

5; 

(2) a military department specified in section 102 of title 

5; 

(3) an independent establishment as defined in section 104(1) 

of title 5; and 

(4) a wholly owned Government corporation fully subject 

to chapter 91 of title 31. 

§ 134. Simplified acquisition threshold 

In division B, the term ‘‘simplified acquisition threshold’’ means 

$100,000. 

SUBCHAPTER III—DIVISION C DEFINITIONS 

§ 151. Agency head 

In division C, the term ‘‘agency head’’ means the head or any 

assistant head of an executive agency, and may at the option 

of the Administrator of General Services include the chief official 
H. R. 1107—7 

of any principal organizational unit of the General Services 

Administration. 

§ 152. Competitive procedures 

In division C, the term ‘‘competitive procedures’’ means procedures under which an executive agency enters into a contract pursuant to full and open competition. The term also includes— 

(1) procurement of architectural or engineering services conducted in accordance with chapter 11 of title 40; 

(2) the competitive selection of basic research proposals 

resulting from a general solicitation and the peer review or 

scientific review (as appropriate) of those proposals; 

(3) the procedures established by the Administrator of General Services for the multiple awards schedule program of the 

General Services Administration if— 

(A) participation in the program has been open to all 

responsible sources; and 

(B) orders and contracts under those procedures result 

in the lowest overall cost alternative to meet the needs 

of the Federal Government; 

(4) procurements conducted in furtherance of section 15 of 

the Small Business Act (15 U.S.C. 644) as long as all responsible 

business concerns that are entitled to submit offers for those 

procurements are permitted to compete; and 

(5) a competitive selection of research proposals resulting 

from a general solicitation and peer review or scientific review 

(as appropriate) solicited pursuant to section 9 of that Act 

(15 U.S.C. 638). 

§ 153. Simplified acquisition threshold for contract in support of humanitarian or peacekeeping operation 

(1) IN GENERAL.—In division C, the term ‘‘simplified acquisition 

threshold’’ has the meaning provided that term in section 134 

of this title, except that, in the case of a contract to be awarded 

and performed, or purchase to be made, outside the United States 

in support of a humanitarian or peacekeeping operation, the term 

means an amount equal to two times the amount specified for 

that term in section 134 of this title. 

(2) DEFINITION.—In paragraph (1), the term ‘‘humanitarian or 

peacekeeping operation’’ means a military operation in support 

of the provision of humanitarian or foreign disaster assistance 

or in support of a peacekeeping operation under chapter VI or 

VII of the Charter of the United Nations. The term does not include 

routine training, force rotation, or stationing. 

DIVISION B—OFFICE OF FEDERAL PROCUREMENT POLICY

CHAPTER 11—ESTABLISHMENT OF OFFICE AND 

AUTHORITY AND FUNCTIONS OF ADMINISTRATOR 

SUBCHAPTER I—GENERAL 

Sec. 

1101. Office of Federal Procurement Policy. 

1102. Administrator. 

SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR 

1121. General authority. 

1122. Functions. 

1123. Small business concerns. 
H. R. 1107—8 

1124. Tests of innovative procurement methods and procedures. 

1125. Recipients of Federal grants or assistance. 

1126. Policy regarding consideration of contractor past performance. 

1127. Determining benchmark compensation amount. 

1128. Maintaining necessary capability with respect to acquisition of architectural 

and engineering services. 

1129. Center of excellence in contracting for services. 

1130. Effect of division on other law. 

1131. Annual report. 

SUBCHAPTER I—GENERAL 

§ 1101. Office of Federal Procurement Policy 

(a) ORGANIZATION.—There is an Office of Federal Procurement 

Policy in the Office of Management and Budget. 

(b) PURPOSES.—The purposes of the Office of Federal Procurement 

Policy are to— 

(1) provide overall direction of Government-wide procurement 

policies, regulations, procedures, and forms for executive agencies; and 

(2) promote economy, efficiency, and effectiveness in the 

procurement of property and services by the executive branch 

of the Federal Government. 

(c) AUTHORIZATION OF APPROPRIATIONS.—Necessary amounts may 

be appropriated each fiscal year for the Office of Federal Procurement Policy to carry out the responsibilities of the Office for that 

fiscal year. 

§ 1102. Administrator 

(a) HEAD OF OFFICE.—The head of the Office of Federal Procurement Policy is the Administrator for Federal Procurement Policy. 

(b) APPOINTMENT.—The Administrator is appointed by the President, by and with the advice and consent of the Senate. 

SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE 

ADMINISTRATOR 

§ 1121. General authority 

(a) OVERALL DIRECTION AND LEADERSHIP.—The Administrator 

shall provide overall direction of procurement policy and leadership 

in the development of procurement systems of the executive agencies. 

(b) FEDERAL ACQUISITION REGULATION.—To the extent that the 

Administrator considers appropriate in carrying out the policies 

and functions set forth in this division, and with due regard for 

applicable laws and the program activities of the executive agencies, 

the Administrator may prescribe Government-wide procurement 

policies. The policies shall be implemented in a single Governmentwide procurement regulation called the Federal Acquisition Regulation. 

(c) POLICIES TO BE FOLLOWED BY EXECUTIVE AGENCIES.— 

(1) AREAS OF PROCUREMENT FOR WHICH POLICIES ARE TO

BE FOLLOWED.—The policies implemented in the Federal 

Acquisition Regulation shall be followed by executive agencies 

in the procurement of— 

(A) property other than real property in being; 

(B) services, including research and development; and 

(C) construction, alteration, repair, or maintenance of 

real property. 
H. R. 1107—9 

(2) PROCEDURES TO ENSURE COMPLIANCE.—The Administrator 

shall establish procedures to ensure compliance with the Federal Acquisition Regulation by all executive agencies. 

(3) APPLICATION OF OTHER LAWS.—The authority of an executive agency under another law to prescribe policies, regulations, 

procedures, and forms for procurement is subject to the 

authority conferred in this section and sections 1122(a) to (c)(1), 

1125, 1126, 1130, 1131, and 2305 of this title. 

(d) WHEN CERTAIN AGENCIES ARE UNABLE TO AGREE OR FAIL

TO ACT.—In any instance in which the Administrator determines 

that the Department of Defense, the National Aeronautics and 

Space Administration, and the General Services Administration 

are unable to agree on or fail to issue Government-wide regulations, 

procedures, and forms in a timely manner, including regulations, 

procedures, and forms necessary to implement prescribed policy 

the Administrator initiates under subsection (b), the Administrator, 

with due regard for applicable laws and the program activities 

of the executive agencies and consistent with the policies and functions set forth in this division, shall prescribe Government-wide 

regulations, procedures, and forms which executive agencies shall 

follow in procuring items listed in subsection (c)(1). 

(e) OVERSIGHT OF PROCUREMENT REGULATIONS OF OTHER AGEN- CIES.—The Administrator, with the concurrence of the Director 

of the Office of Management and Budget, and with consultation 

with the head of the agency concerned, may deny the promulgation 

of or rescind any Government-wide regulation or final rule or regulation of any executive agency relating to procurement if the Administrator determines that the rule or regulation is inconsistent with 

any policies, regulations, or procedures issued pursuant to subsection (b). 

(f) LIMITATION ON AUTHORITY.—The authority of the Administrator under this division shall not be construed to— 

(1) impair or interfere with the determination by executive 

agencies of their need for, or their use of, specific property, 

services, or construction, including particular specifications for 

the property, services, or construction; or 

(2) interfere with the determination by executive agencies 

of specific actions in the award or administration of procurement contracts. 

§ 1122. Functions 

(a) IN GENERAL.—The functions of the Administrator include— 

(1) providing leadership and ensuring action by the executive 

agencies in establishing, developing, and maintaining the single 

system of simplified Government-wide procurement regulations 

and resolving differences among the executive agencies in developing simplified Government-wide procurement regulations, 

procedures, and forms; 

(2) coordinating the development of Government-wide 

procurement system standards that executive agencies shall 

implement in their procurement systems; 

(3) providing leadership and coordination in formulating the 

executive branch position on legislation relating to procurement; 

(4)(A) providing for and directing the activities of the computer-based Federal Procurement Data System (including recommending to the Administrator of General Services a sufficient budget for those activities), which shall be located in 
H. R. 1107—10 

the General Services Administration, in order to adequately 

collect, develop, and disseminate procurement data; and 

(B) ensuring executive agency compliance with the record 

requirements of section 1712 of this title; 

(5) providing for and directing the activities of the Federal 

Acquisition Institute (including recommending to the Administrator of General Services a sufficient budget for those activities), which shall be located in the General Services Administration, in order to— 

(A) foster and promote the development of a professional 

acquisition workforce Government-wide; 

(B) promote and coordinate Government-wide research 

and studies to improve the procurement process and the 

laws, policies, methods, regulations, procedures, and forms 

relating to acquisition by the executive agencies; 

(C) collect data and analyze acquisition workforce data 

from the Office of Personnel Management, from the heads 

of executive agencies, and, through periodic surveys, from 

individual employees; 

(D) periodically analyze acquisition career fields to identify critical competencies, duties, tasks, and related academic prerequisites, skills, and knowledge; 

(E) coordinate and assist agencies in identifying and 

recruiting highly qualified candidates for acquisition fields; 

(F) develop instructional materials for acquisition personnel in coordination with private and public acquisition 

colleges and training facilities; 

(G) evaluate the effectiveness of training and career 

development programs for acquisition personnel; 

(H) promote the establishment and utilization of academic programs by colleges and universities in acquisition 

fields; 

(I) facilitate, to the extent requested by agencies, interagency intern and training programs; and 

(J) perform other career management or research functions as directed by the Administrator; 

(6) administering section 1703(a) to (i) of this title; 

(7) establishing criteria and procedures to ensure the effective 

and timely solicitation of the viewpoints of interested parties 

in the development of procurement policies, regulations, procedures, and forms; 

(8) developing standard contract forms and contract language 

in order to reduce the Federal Government’s cost of procuring 

property and services and the private sector’s cost of doing 

business with the Federal Government; 

(9) providing for a Government-wide award to recognize and 

promote vendor excellence; 

(10) providing for a Government-wide award to recognize 

and promote excellence in officers and employees of the Federal 

Government serving in procurement-related positions; 

(11) developing policies, in consultation with the Administrator of the Small Business Administration, that ensure that 

small businesses, qualified HUBZone small business concerns 

(as defined in section 3(p) of the Small Business Act (15 U.S.C. 

632(p))), small businesses owned and controlled by socially and 

economically disadvantaged individuals, and small businesses 

owned and controlled by women are provided with the maximum practicable opportunities to participate in procurements 
H. R. 1107—11 

that are conducted for amounts below the simplified acquisition 

threshold; 

(12) developing policies that will promote achievement of 

goals for participation by small businesses, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns (as defined in section 

3(p) of the Small Business Act (15 U.S.C. 632(p))), small 

businesses owned and controlled by socially and economically 

disadvantaged individuals, and small businesses owned and 

controlled by women; and 

(13) completing action, as appropriate, on the recommendations of the Commission on Government Procurement. 

(b) CONSULTATION AND ASSISTANCE.—In carrying out the functions in subsection (a), the Administrator— 

(1) shall consult with the affected executive agencies, 

including the Small Business Administration; 

(2) with the concurrence of the heads of affected executive 

agencies, may designate one or more executive agencies to 

assist in performing those functions; and 

(3) may establish advisory committees or other interagency 

groups to assist in providing for the establishment, development, and maintenance of a single system of simplified Government-wide procurement regulations and to assist in performing 

any other function the Administrator considers appropriate. 

(c) ASSIGNMENT, DELEGATION, OR TRANSFER.— 

(1) TO ADMINISTRATOR.—Except as otherwise provided by law, 

only duties, functions, or responsibilities expressly assigned 

by this division shall be assigned, delegated, or transferred 

to the Administrator. 

(2) BY ADMINISTRATOR.— 

(A) WITHIN OFFICE.—The Administrator may make and 

authorize delegations within the Office of Federal Procurement Policy that the Administrator determines to be necessary to carry out this division. 

(B) TO ANOTHER EXECUTIVE AGENCY.—The Administrator 

may delegate, and authorize successive redelegations of, 

an authority, function, or power of the Administrator under 

this division (other than the authority to provide overall 

direction of Federal procurement policy and to prescribe 

policies and regulations to carry out the policy) to another 

executive agency with the consent of the head of the executive agency or at the direction of the President. 

§ 1123. Small business concerns 

In formulating the Federal Acquisition Regulation and procedures 

to ensure compliance with the Regulation, the Administrator, in 

consultation with the Small Business Administration, shall— 

(1) conduct analyses of the impact on small business concerns 

resulting from revised procurement regulations; and 

(2) incorporate into revised procurement regulations simplified bidding, contract performance, and contract administration procedures for small business concerns. 
H. R. 1107—12 

§ 1124. Tests of innovative procurement methods and procedures 

(a) IN GENERAL.—The Administrator may develop innovative 

procurement methods and procedures to be tested by selected executive agencies. In developing a program to test innovative procurement methods and procedures under this subsection, the Administrator shall consult with the heads of executive agencies to— 

(1) ascertain the need for and specify the objectives of the 

program; 

(2) develop the guidelines and procedures for carrying out 

the program and the criteria to be used in measuring the 

success of the program; 

(3) evaluate the potential costs and benefits which may be 

derived from the innovative procurement methods and procedures tested under the program; 

(4) select the appropriate executive agencies or components 

of executive agencies to carry out the program; 

(5) specify the categories and types of products or services 

to be procured under the program; and 

(6) develop the methods to be used to analyze the results 

of the program. 

(b) APPROVAL OF EXECUTIVE AGENCIES REQUIRED.—A program 

to test innovative procurement methods and procedures may not 

be carried out unless approved by the heads of the executive agencies selected to carry out the program. 

(c) REQUEST FOR WAIVER OF LAW.—If the Administrator determines that it is necessary to waive the application of a provision 

of law to carry out a proposed program to test innovative procurement methods and procedures under subsection (a), the Administrator shall transmit notice of the proposed program to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate and request that the Committees 

take the necessary action to provide that the provision of law 

does not apply with respect to the proposed program. The notification to Congress shall include— 

(1) a description of the proposed program (including the scope 

and purpose of the proposed program); 

(2) the procedures to be followed in carrying out the proposed 

program; 

(3) the provisions of law affected and the application of any 

provision of law that must be waived in order to carry out 

the proposed program; and 

(4) the executive agencies involved in carrying out the proposed program. 

§ 1125. Recipients of Federal grants or assistance 

(a) AUTHORITY.—With due regard to applicable laws and the 

program activities of the executive agencies administering Federal 

programs of grants or assistance, the Administrator may prescribe 

Government-wide policies, regulations, procedures, and forms that 

the Administrator considers appropriate and that executive agencies 

shall follow in providing for the procurement, to the extent required 

under those programs, of property or services referred to in section 

1121(c)(1) of this title by recipients of Federal grants or assistance 

under the programs. 

(b) LIMITATION.—Subsection (a) does not— 
H. R. 1107—13 

(1) permit the Administrator to authorize procurement or 

supply support, either directly or indirectly, to a recipient of 

a Federal grant or assistance; or 

(2) authorize action by a recipient contrary to State and 

local law in the case of a program to provide a Federal grant 

or assistance to a State or political subdivision. 

§ 1126. Policy regarding consideration of contractor past 

performance 

(a) GUIDANCE.—The Administrator shall prescribe for executive 

agencies guidance regarding consideration of the past contract 

performance of offerors in awarding contracts. The guidance shall 

include— 

(1) standards for evaluating past performance with respect 

to cost (when appropriate), schedule, compliance with technical 

or functional specifications, and other relevant performance 

factors that facilitate consistent and fair evaluation by all 

executive agencies; 

(2) policies for the collection and maintenance of information 

on past contract performance that, to the maximum extent 

practicable, facilitate automated collection, maintenance, and 

dissemination of information and provide for ease of collection, 

maintenance, and dissemination of information by other 

methods, as necessary; 

(3) policies for ensuring that— 

(A) offerors are afforded an opportunity to submit relevant information on past contract performance, including 

performance under contracts entered into by the executive 

agency concerned, other departments and agencies of the 

Federal Government, agencies of State and local governments, and commercial customers; and 

(B) the information submitted by offerors is considered; 

and 

(4) the period for which information on past performance 

of offerors may be maintained and considered. 

(b) INFORMATION NOT AVAILABLE.—If there is no information 

on past contract performance of an offeror or the information on 

past contract performance is not available, the offeror may not 

be evaluated favorably or unfavorably on the factor of past contract 

performance. 

§ 1127. Determining benchmark compensation amount 

(a) DEFINITIONS.—In this section: 

(1) BENCHMARK COMPENSATION AMOUNT.—The term ‘‘benchmark compensation amount’’, for a fiscal year, is the median 

amount of the compensation provided for all senior executives 

of all benchmark corporations for the most recent year for 

which data is available at the time the determination under 

subsection (b) is made. 

(2) BENCHMARK CORPORATION.—The term ‘‘benchmark corporation’’, with respect to a fiscal year, means a publicly-owned 

United States corporation that has annual sales in excess of 

$50,000,000 for the fiscal year. 

(3) COMPENSATION.—The term ‘‘compensation’’, for a fiscal 

year, means the total amount of wages, salary, bonuses, and 

deferred compensation for the fiscal year, whether paid, earned, 

or otherwise accruing, as recorded in an employer’s cost 

accounting records for the fiscal year. 
H. R. 1107—14 

(4) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year 

a contractor establishes for accounting purposes. 

(5) PUBLICLY-OWNED UNITED STATES CORPORATION.—The term 

‘‘publicly-owned United States corporation’’ means a corporation— 

(A) organized under the laws of a State of the United 

States, the District of Columbia, Puerto Rico, or a possession of the United States; and 

(B) whose voting stock is publicly traded. 

(6) SENIOR EXECUTIVES.—The term ‘‘senior executives’’, with 

respect to a contractor, means the 5 most highly compensated 

employees in management positions at each home office and 

each segment of the contractor. 

(b) DETERMINING BENCHMARK COMPENSATION AMOUNT.—For purposes of section 4304(a)(16) of this title and section 2324(e)(1)(P) 

of title 10, the Administrator shall review commercially available 

surveys of executive compensation and, on the basis of the results 

of the review, determine a benchmark compensation amount to 

apply for each fiscal year. In making determinations under this 

subsection, the Administrator shall consult with the Director of 

the Defense Contract Audit Agency and other officials of executive 

agencies as the Administrator considers appropriate. 

§ 1128. Maintaining necessary capability with respect to 

acquisition of architectural and engineering 

services 

The Administrator, in consultation with the Secretary of Defense, 

the Administrator of General Services, and the Director of the 

Office of Personnel Management, shall develop and implement a 

plan to ensure that the Federal Government maintains the necessary capability with respect to the acquisition of architectural 

and engineering services to— 

(1) ensure that Federal Government employees have the 

expertise to determine agency requirements for those services; 

(2) establish priorities and programs, including acquisition 

plans; 

(3) establish professional standards; 

(4) develop scopes of work; and 

(5) award and administer contracts for those services. 

§ 1129. Center of excellence in contracting for services 

The Administrator shall maintain a center of excellence in contracting for services. The center shall assist the acquisition community by identifying, and serving as a clearinghouse for, best practices 

in contracting for services in the public and private sectors. 

§ 1130. Effect of division on other law 

This division does not impair or affect the authorities or responsibilities relating to the procurement of real property conferred 

by division C of this subtitle and chapters 1 to 11 of title 40. 

§ 1131. Annual report 

The Administrator annually shall submit to Congress an assessment of the progress made in executive agencies in implementing 

the policy regarding major acquisitions that is stated in section 

3103(a) of this title. The Administrator shall use data from existing 

management systems in making the assessment. 
H. R. 1107—15 

CHAPTER 13—ACQUISITION COUNCILS 

SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY COUNCIL 

Sec. 

1301. Definition. 

1302. Establishment and membership. 

1303. Functions and authority. 

1304. Contract clauses and certifications. 

SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 

1311. Establishment and membership. 

1312. Functions. 

SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY 

COUNCIL 

§ 1301. Definition 

In this subchapter, the term ‘‘Council’’ means the Federal Acquisition Regulatory Council established under section 1302(a) of this 

title. 

§ 1302. Establishment and membership 

(a) ESTABLISHMENT.—There is a Federal Acquisition Regulatory 

Council to assist in the direction and coordination of Governmentwide procurement policy and Government-wide procurement regulatory activities in the Federal Government. 

(b) MEMBERSHIP.— 

(1) MAKEUP OF COUNCIL.—The Council consists of— 

(A) the Administrator; 

(B) the Secretary of Defense; 

(C) the Administrator of National Aeronautics and Space; 

and 

(D) the Administrator of General Services. 

(2) DESIGNATION OF OTHER OFFICIALS.— 

(A) OFFICIALS WHO MAY BE DESIGNATED.—Notwithstanding section 121(d)(1) and (2) of title 40, the officials 

specified in subparagraphs (B) to (D) of paragraph (1) may 

designate to serve on and attend meetings of the Council 

in place of that official— 

(i) the official assigned by statute with the responsibility for acquisition policy in each of their respective 

agencies or, in the case of the Secretary of Defense, 

an official at an organizational level not lower than 

an Assistant Secretary of Defense within the Office 

of the Under Secretary of Defense for Acquisition, Technology, and Logistics; or 

(ii) if no official of that agency is assigned by statute 

with the responsibility for acquisition policy for that 

agency, the official designated pursuant to section 

1702(c) of this title. 

(B) LIMITATION ON DESIGNATION.—No other official or 

employee may be designated to serve on the Council. 

§ 1303. Functions and authority 

(a) FUNCTIONS.— 

(1) ISSUE AND MAINTAIN FEDERAL ACQUISITION REGULATION.— 

Subject to sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 

1131, and 2305 of this title, the Administrator of General 

Services, the Secretary of Defense, and the Administrator of 
H. R. 1107—16 

National Aeronautics and Space, pursuant to their respective 

authorities under division C of this subtitle, chapters 4 and 

137 of title 10, and the National Aeronautics and Space Act 

of 1958 (42 U.S.C. 2451 et seq.), shall jointly issue and maintain 

in accordance with subsection (d) a single Government-wide 

procurement regulation, to be known as the Federal Acquisition 

Regulation. 

(2) LIMITATION ON OTHER REGULATIONS.—Other regulations 

relating to procurement issued by an executive agency shall 

be limited to— 

(A) regulations essential to implement Government-wide 

policies and procedures within the agency; and 

(B) additional policies and procedures required to satisfy 

the specific and unique needs of the agency. 

(3) ENSURE CONSISTENT REGULATIONS.—The Administrator, 

in consultation with the Council, shall ensure that procurement 

regulations prescribed by executive agencies are consistent with 

the Federal Acquisition Regulation and in accordance with 

the policies prescribed pursuant to section 1121(b) of this title. 

(4) REQUEST TO REVIEW REGULATION.— (A) BASIS FOR REQUEST.—Under procedures the Administrator establishes, a person may request the Administrator 

to review a regulation relating to procurement on the basis 

that the regulation is inconsistent with the Federal Acquisition Regulation. 

(B) PERIOD OF REVIEW.—Unless the request is frivolous 

or does not, on its face, state a valid basis for the review, 

the Administrator shall complete the review not later than 

60 days after receiving the request. The time for completion 

of the review may be extended if the Administrator determines that an additional period of review is required. The 

Administrator shall advise the requester of the reasons 

for the extension and the date by which the review will 

be completed. 

(5) WHEN REGULATION IS INCONSISTENT OR NEEDS TO BE

IMPROVED.—If the Administrator determines that a regulation 

relating to procurement is inconsistent with the Federal 

Acquisition Regulation or that the regulation otherwise should 

be revised to remove an inconsistency with the policies prescribed under section 1121(b) of this title, the Administrator 

shall rescind or deny the promulgation of the regulation or 

take other action authorized under sections 1121, 1122(a) to 

(c)(1), 1125, 1126, 1130, 1131, and 2305 of this title as may 

be necessary to remove the inconsistency. If the Administrator 

determines that the regulation, although not inconsistent with 

the Federal Acquisition Regulation or those policies, should 

be revised to improve compliance with the Regulation or policies, the Administrator shall take action authorized under sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 2305 

as may be necessary and appropriate. 

(6) DECISIONS TO BE IN WRITING AND PUBLICLY AVAILABLE.— 

The decisions of the Administrator shall be in writing and 

made publicly available. 

(b) ADDITIONAL RESPONSIBILITIES OF MEMBERSHIP.— 

(1) IN GENERAL.—Subject to the authority, direction, and 

control of the head of the agency concerned, each official who 

represents an agency on the Council pursuant to section 1302(b) 

of this title shall— 
H. R. 1107—17 

(A) approve or disapprove all regulations relating to 

procurement that are proposed for public comment, prescribed in final form, or otherwise made effective by that 

agency before the regulation may be prescribed in final 

form, or otherwise made effective, except that the official 

may grant an interim approval, without review, for not 

more than 60 days for a procurement regulation in urgent 

and compelling circumstances; 

(B) carry out the responsibilities of that agency set forth 

in chapter 35 of title 44 for each information collection 

request that relates to procurement rules or regulations; 

and 

(C) eliminate or reduce— 

(i) any redundant or unnecessary levels of review 

and approval in the procurement system of that agency; 

and 

(ii) redundant or unnecessary procurement regulations which are unique to that agency. 

(2) LIMITATION ON DELEGATION.—The authority to review and 

approve or disapprove regulations under paragraph (1)(A) may 

not be delegated to an individual outside the office of the 

official who represents the agency on the Council pursuant 

to section 1302(b) of this title. 

(c) GOVERNING POLICIES.—All actions of the Council and of members of the Council shall be in accordance with and furtherance 

of the policies prescribed under section 1121(b) of this title. 

(d) GENERAL AUTHORITY WITH RESPECT TO FEDERAL ACQUISITION

REGULATION.—Subject to section 1121(d) of this title, the Council 

shall manage, coordinate, control, and monitor the maintenance 

of, issuance of, and changes in, the Federal Acquisition Regulation. 

§ 1304. Contract clauses and certifications 

(a) REPETITIVE NONSTANDARD CONTRACT CLAUSES DISCOURAGED.—The Council shall prescribe regulations to discourage the 

use of a nonstandard contract clause on a repetitive basis. The 

regulations shall include provisions that— 

(1) clearly define what types of contract clauses are to be 

treated as nonstandard clauses; and 

(2) require prior approval for the use of a nonstandard clause 

on a repetitive basis by an official at a level of responsibility 

above the contracting officer. 

(b) WHEN CERTIFICATION REQUIRED.— 

(1) BY LAW.—A provision of law may not be construed as 

requiring a certification by a contractor or offeror in a procurement made or to be made by the Federal Government unless 

that provision of law specifically provides that such a certification shall be required. 

(2) IN FEDERAL ACQUISITION REGULATION.—A requirement for 

a certification by a contractor or offeror may not be included 

in the Federal Acquisition Regulation unless— 

(A) the certification requirement is specifically imposed 

by statute; or 

(B) written justification for the certification requirement 

is provided to the Administrator by the Council and the 

Administrator approves in writing the inclusion of the certification requirement. 

(3) EXECUTIVE AGENCY PROCUREMENT REGULATION.— 
H. R. 1107—18 

(A) DEFINITION.—In subparagraph (B), the term ‘‘head 

of the executive agency’’ with respect to a military department means the Secretary of Defense. 

(B) WHEN CERTIFICATION REQUIREMENT MAY BE INCLUDED

IN REGULATION.—A requirement for a certification by a 

contractor or offeror may not be included in a procurement 

regulation of an executive agency unless— 

(i) the certification requirement is specifically 

imposed by statute; or 

(ii) written justification for the certification requirement is provided to the head of the executive agency 

by the senior procurement executive of the agency and 

the head of the executive agency approves in writing 

the inclusion of the certification requirement. 

SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 

§ 1311. Establishment and membership 

(a) ESTABLISHMENT.—There is in the executive branch a Chief 

Acquisition Officers Council. 

(b) MEMBERSHIP.—The members of the Council are— 

(1) the Deputy Director for Management of the Office of 

Management and Budget; 

(2) the Administrator; 

(3) the Under Secretary of Defense for Acquisition, Technology, and Logistics; 

(4) the chief acquisition officer of each executive agency that 

is required to have a chief acquisition officer under section 

1702 of this title and the senior procurement executive of 

each military department; and 

(5) any other senior agency officer of each executive agency, 

appointed by the head of the agency in consultation with the 

Chairman of the Council, who can effectively assist the Council 

in performing the functions set forth in section 1312(b) of 

this title and supporting the associated range of acquisition 

activities. 

(c) LEADERSHIP AND SUPPORT.— 

(1) CHAIRMAN.—The Deputy Director for Management of the 

Office of Management and Budget is the Chairman of the 

Council. 

(2) VICE CHAIRMAN.—The Vice Chairman of the Council shall 

be selected by the Council from among its members. The Vice 

Chairman serves for one year and may serve multiple terms. 

(3) LEADER OF ACTIVITIES.—The Administrator shall lead the 

activities of the Council on behalf of the Deputy Director for 

Management. 

(4) SUPPORT.—The Administrator of General Services shall 

provide administrative and other support for the Council. 

§ 1312. Functions 

(a) PRINCIPAL FORUM.—The Chief Acquisition Officers Council 

is the principal interagency forum for monitoring and improving 

the Federal acquisition system. 

(b) FUNCTIONS.—The Council shall perform functions that include 

the following: 

(1) Develop recommendations for the Director of the Office 

of Management and Budget on Federal acquisition policies and 

requirements. 
H. R. 1107—19 

(2) Share experiences, ideas, best practices, and innovative 

approaches related to Federal acquisition. 

(3) Assist the Administrator in the identification, development, and coordination of multiagency projects and other 

innovative initiatives to improve Federal acquisition. 

(4) Promote effective business practices that ensure the timely 

delivery of best value products to the Federal Government 

and achieve appropriate public policy objectives. 

(5) Further integrity, fairness, competition, openness, and 

efficiency in the Federal acquisition system. 

(6) Work with the Office of Personnel Management to assess 

and address the hiring, training, and professional development 

needs of the Federal Government related to acquisition. 

(7) Work with the Administrator and the Federal Acquisition 

Regulatory Council to promote the business practices referred 

to in paragraph (4) and other results of the functions carried 

out under this subsection. 

CHAPTER 15—COST ACCOUNTING STANDARDS 

Sec. 

1501. Cost Accounting Standards Board. 

1502. Cost accounting standards. 

1503. Contract price adjustment. 

1504. Effect on other standards and regulations. 

1505. Examinations. 

1506. Authorization of appropriations. 

§ 1501. Cost Accounting Standards Board 

(a) ORGANIZATION.—The Cost Accounting Standards Board is an 

independent board in the Office of Federal Procurement Policy. 

(b) MEMBERSHIP.— 

(1) NUMBER OF MEMBERS, CHAIRMAN, AND APPOINTMENT.— 

The Board consists of 5 members. One member is the Administrator, who serves as Chairman. The other 4 members, all 

of whom shall have experience in Federal Government contract 

cost accounting, are as follows: 

(A) 2 representatives of the Federal Government— 

(i) one of whom is a representative of the Department 

of Defense appointed by the Secretary of Defense; and 

(ii) one of whom is an officer or employee of the 

General Services Administration appointed by the 

Administrator of General Services. 

(B) 2 individuals from the private sector, each of whom 

is appointed by the Administrator, and— 

(i) one of whom is a representative of industry; and 

(ii) one of whom is particularly knowledgeable about 

cost accounting problems and systems. 

(2) TERM OF OFFICE.— 

(A) LENGTH OF TERM.—The term of office of each member, 

other than the Administrator, is 4 years. The terms are 

staggered, with the terms of 2 members expiring in the 

same year, the term of another member expiring the next 

year, and the term of the last member expiring the year 

after that. 

(B) INDIVIDUAL REQUIRED TO REMAIN WITH APPOINTING

AGENCY.—A member appointed under paragraph (1)(A) may 

not continue to serve after ceasing to be an officer or 

employee of the agency from which that member was 

appointed. 
H. R. 1107—20 

(3) VACANCY.—A vacancy on the Board shall be filled in 

the same manner in which the original appointment was made. 

A member appointed to fill a vacancy serves for the remainder 

of the term for which that member’s predecessor was appointed. 

(c) SENIOR STAFF.—The Administrator, after consultation with 

the Board, may— 

(1) appoint an executive secretary and 2 additional staff 

members without regard to the provisions of title 5 governing 

appointments in the competitive service; and 

(2) pay those employees without regard to the provisions 

of chapter 51 and subchapter III of chapter 53 of title 5 relating 

to classification and General Schedule pay rates, except that 

those employees may not receive pay in excess of the maximum 

rate of basic pay payable for level IV of the Executive Schedule. 

(d) OTHER STAFF.—The Administrator may appoint, fix the compensation of, and remove additional employees of the Board under 

the applicable provisions of title 5. 

(e) DETAILED AND TEMPORARY PERSONNEL.—For service on 

advisory committees and task forces to assist the Board in carrying 

out its functions and responsibilities— 

(1) the Board, with the consent of the head of a Federal 

agency, may use, without reimbursement, personnel of that 

agency; and 

(2) the Administrator, after consultation with the Board, 

may procure temporary and intermittent services of personnel 

under section 3109(b) of title 5. 

(f) COMPENSATION.— (1) OFFICERS AND EMPLOYEES OF THE GOVERNMENT.—Members of the Board who are officers or employees of the Federal 

Government, and officers and employees of other agencies of 

the Federal Government who are used under subsection (e)(1), 

shall not receive additional compensation for services but shall 

continue to be compensated by the employing department or 

agency of the officer or employee. 

(2) APPOINTEES FROM PRIVATE SECTOR.—Each member of the 

Board appointed from the private sector shall receive compensation at a rate not to exceed the daily equivalent of the rate 

for level IV of the Executive Schedule for each day (including 

travel time) in which the member is engaged in the actual 

performance of duties vested in the Board. 

(3) TEMPORARY AND INTERMITTENT PERSONNEL.—An individual hired under subsection (e)(2) may receive compensation 

at a rate fixed by the Administrator, but not to exceed the 

daily equivalent of the rate for level V of the Executive Schedule 

for each day (including travel time) in which the individual 

is properly engaged in the actual performance of duties under 

this chapter. 

(4) TRAVEL EXPENSES.—While serving away from home or 

regular place of business, Board members and other individuals 

serving on an intermittent basis under this chapter shall be 

allowed travel expenses in accordance with section 5703 of 

title 5. 

§ 1502. Cost accounting standards 

(a) AUTHORITY.— 

(1) COST ACCOUNTING STANDARDS BOARD.—The Cost 

Accounting Standards Board has exclusive authority to prescribe, amend, and rescind cost accounting standards, and 
H. R. 1107—21 

interpretations of the standards, designed to achieve uniformity 

and consistency in the cost accounting standards governing 

measurement, assignment, and allocation of costs to contracts 

with the Federal Government. 

(2) ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY.—The 

Administrator, after consultation with the Board, shall prescribe rules and procedures governing actions of the Board 

under this chapter. The rules and procedures shall require 

that any action to prescribe, amend, or rescind a standard 

or interpretation be approved by majority vote of the Board. 

(b) MANDATORY USE OF STANDARDS.— (1) SUBCONTRACT.— (A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’ includes a transfer of commercial items between 

divisions, subsidiaries, or affiliates of a contractor or subcontractor. 

(B) WHEN STANDARDS ARE TO BE USED.—Cost accounting 

standards prescribed under this chapter are mandatory 

for use by all executive agencies and by contractors and 

subcontractors in estimating, accumulating, and reporting 

costs in connection with the pricing and administration 

of, and settlement of disputes concerning, all negotiated 

prime contract and subcontract procurements with the Federal Government in excess of the amount set forth in section 2306a(a)(1)(A)(i) of title 10 as the amount is adjusted 

in accordance with applicable requirements of law. 

(C) NONAPPLICATION OF STANDARDS.—Subparagraph (B) 

does not apply to— 

(i) a contract or subcontract for the acquisition of 

a commercial item; 

(ii) a contract or subcontract where the price negotiated is based on a price set by law or regulation; 

(iii) a firm, fixed-price contract or subcontract 

awarded on the basis of adequate price competition 

without submission of certified cost or pricing data; 

or 

(iv) a contract or subcontract with a value of less 

than $7,500,000 if, when the contract or subcontract 

is entered into, the segment of the contractor or subcontractor that will perform the work has not been 

awarded at least one contract or subcontract with a 

value of more than $7,500,000 that is covered by the 

standards. 

(2) EXEMPTIONS AND WAIVERS BY BOARD.—The Board may— 

(A) exempt classes of contractors and subcontractors from 

the requirements of this chapter; and 

(B) establish procedures for the waiver of the requirements of this chapter for individual contracts and subcontracts. 

(3) WAIVER BY HEAD OF EXECUTIVE AGENCY.— 

(A) IN GENERAL.—The head of an executive agency may 

waive the applicability of the cost accounting standards 

for a contract or subcontract with a value of less than 

$15,000,000 if that official determines in writing that the 

segment of the contractor or subcontractor that will perform 

the work— 

(i) is primarily engaged in the sale of commercial 

items; and 
H. R. 1107—22 

(ii) would not otherwise be subject to the cost 

accounting standards under this section. 

(B) IN EXCEPTIONAL CIRCUMSTANCES.—The head of an 

executive agency may waive the applicability of the cost 

accounting standards for a contract or subcontract under 

exceptional circumstances when necessary to meet the 

needs of the agency. A determination to waive the applicability of the standards under this subparagraph shall be 

set forth in writing and shall include a statement of the 

circumstances justifying the waiver. 

(C) RESTRICTION ON DELEGATION OF AUTHORITY.—The 

head of an executive agency may not delegate the authority 

under subparagraph (A) or (B) to an official in the executive 

agency below the senior policymaking level in the executive 

agency. 

(D) CONTENTS OF FEDERAL ACQUISITION REGULATION.— The Federal Acquisition Regulation shall include— 

(i) criteria for selecting an official to be delegated 

authority to grant waivers under subparagraph (A) 

or (B); and 

(ii) the specific circumstances under which the 

waiver may be granted. 

(E) REPORT.—The head of each executive agency shall 

report the waivers granted under subparagraphs (A) and 

(B) for that agency to the Board on an annual basis. 

(c) REQUIRED BOARD ACTION FOR PRESCRIBING STANDARDS AND

INTERPRETATIONS.—Before prescribing cost accounting standards 

and interpretations, the Board shall— 

(1) take into account, after consultation and discussions with 

the Comptroller General, professional accounting organizations, 

contractors, and other interested parties— 

(A) the probable costs of implementation, including any 

inflationary effects, compared to the probable benefits; 

(B) the advantages, disadvantages, and improvements 

anticipated in the pricing and administration of, and settlement of disputes concerning, contracts; and 

(C) the scope of, and alternatives available to, the action 

proposed to be taken; 

(2) prepare and publish a report in the Federal Register 

on the issues reviewed under paragraph (1); 

(3)(A) publish an advanced notice of proposed rulemaking 

in the Federal Register to solicit comments on the report prepared under paragraph (2); 

(B) provide all parties affected at least 60 days after publication to submit their views and comments; and 

(C) during the 60-day period, consult with the Comptroller 

General and consider any recommendation the Comptroller 

General may make; and 

(4) publish a notice of proposed rulemaking in the Federal 

Register and provide all parties affected at least 60 days after 

publication to submit their views and comments. 

(d) EFFECTIVE DATES.—Rules, regulations, cost accounting standards, and modifications thereof prescribed or amended under this 

chapter shall have the full force and effect of law, and shall become 

effective within 120 days after publication in the Federal Register 

in final form, unless the Board determines that a longer period 

is necessary. The Board shall determine implementation dates for 

contractors and subcontractors. The dates may not be later than 
H. R. 1107—23 

the beginning of the second fiscal year of the contractor or subcontractor after the standard becomes effective. 

(e) ACCOMPANYING MATERIAL.—Rules, regulations, cost 

accounting standards, and modifications thereof prescribed or 

amended under this chapter shall be accompanied by prefatory 

comments and by illustrations, if necessary. 

(f) IMPLEMENTING REGULATIONS.—The Board shall prescribe regulations for the implementation of cost accounting standards prescribed or interpreted under this section. The regulations shall 

be incorporated into the Federal Acquisition Regulation and shall 

require contractors and subcontractors as a condition of contracting 

with the Federal Government to— 

(1) disclose in writing their cost accounting practices, 

including methods of distinguishing direct costs from indirect 

costs and the basis used for allocating indirect costs; and 

(2) agree to a contract price adjustment, with interest, for 

any increased costs paid to the contractor or subcontractor 

by the Federal Government because of a change in the contractor’s or subcontractor’s cost accounting practices or a failure 

by the contractor or subcontractor to comply with applicable 

cost accounting standards. 

(g) NONAPPLICABILITY OF CERTAIN SECTIONS OF TITLE 5.—Functions exercised under this chapter are not subject to sections 551, 

553 to 559, and 701 to 706 of title 5. 

§ 1503. Contract price adjustment 

(a) DISAGREEMENT CONSTITUTES A DISPUTE.—If the Federal 

Government and a contractor or subcontractor fail to agree on 

a contract price adjustment, including whether the contractor or 

subcontractor has complied with the applicable cost accounting 

standards, the disagreement will constitute a dispute under chapter 

71 of this title. 

(b) AMOUNT OF ADJUSTMENT.—A contract price adjustment undertaken under section 1502(f)(2) of this title shall be made, where 

applicable, on relevant contracts between the Federal Government 

and the contractor that are subject to the cost accounting standards 

so as to protect the Federal Government from payment, in the 

aggregate, of increased costs, as defined by the Cost Accounting 

Standards Board. The Federal Government may not recover costs 

greater than the aggregate increased cost to the Federal Government, as defined by the Board, on the relevant contracts subject 

to the price adjustment unless the contractor made a change in 

its cost accounting practices of which it was aware or should have 

been aware at the time of the price negotiation and which it 

failed to disclose to the Federal Government. 

(c) INTEREST.—The interest rate applicable to a contract price 

adjustment is the annual rate of interest established under section 

6621 of the Internal Revenue Code of 1986 (26 U.S.C. 6621) for 

the period. Interest accrues from the time payments of the increased 

costs were made to the contractor or subcontractor to the time 

the Federal Government receives full compensation for the price 

adjustment. 

§ 1504. Effect on other standards and regulations 

(a) PREVIOUSLY EXISTING STANDARDS.—All cost accounting standards, waivers, exemptions, interpretations, modifications, rules, and 

regulations prescribed by the Cost Accounting Standards Board 
H. R. 1107—24 

under section 719 of the Defense Production Act of 1950 (50 U.S.C. 

App. 2168)— 

(1) remain in effect until amended, superseded, or rescinded 

by the Board under this chapter; and 

(2) are subject to the provisions of this division in the same 

manner as if prescribed by the Board under this division. 

(b) INCONSISTENT AGENCY REGULATIONS.—To ensure that a regulation or proposed regulation of an executive agency is not inconsistent with a cost accounting standard prescribed or amended 

under this chapter, the Administrator, under the authority in sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 2305 

of this title, shall rescind or deny the promulgation of the inconsistent regulation or proposed regulation and take other appropriate 

action authorized under sections 1121, 1122(a) to (c)(1), 1125, 1126, 

1130, 1131, and 2305. 

(c) COSTS NOT SUBJECT TO DIFFERENT STANDARDS.—Costs that 

are the subject of cost accounting standards prescribed under this 

chapter are not subject to regulations established by another executive agency that differ from those standards with respect to the 

measurement, assignment, and allocation of those costs. 

§ 1505. Examinations 

To determine whether a contractor or subcontractor has complied 

with cost accounting standards prescribed under this chapter and 

has followed consistently the contractor’s or subcontractor’s disclosed cost accounting practices, an authorized representative of 

the head of the agency concerned, of the offices of inspector general 

established under the Inspector General Act of 1978 (5 U.S.C. 

App.), or of the Comptroller General shall have the right to examine 

and copy documents, papers, or records of the contractor or subcontractor relating to compliance with the standards. 

§ 1506. Authorization of appropriations 

Necessary amounts may be appropriated to carry out this chapter. 

CHAPTER 17—AGENCY RESPONSIBILITIES AND 

PROCEDURES 

Sec. 

1701. Cooperation with the Administrator. 

1702. Chief Acquisition Officers and senior procurement executives. 

1703. Acquisition workforce. 

1704. Planning and policy-making for acquisition workforce. 

1705. Advocates for competition. 

1706. Personnel evaluation. 

1707. Publication of proposed regulations. 

1708. Procurement notice. 

1709. Contracting functions performed by Federal personnel. 

1710. Public-private competition required before conversion to contractor performance. 1711. Value engineering. 

1712. Record requirements. 

1713. Procurement data. 

§ 1701. Cooperation with the Administrator 

On the request of the Administrator, each executive agency 

shall— 

(1) make its services, personnel, and facilities available to 

the Office of Federal Procurement Policy to the greatest practicable extent for the performance of functions under this division; and 
H. R. 1107—25 

(2) except when prohibited by law, furnish to the Administrator, and give the Administrator access to, all information 

and records in its possession that the Administrator may determine to be necessary for the performance of the functions 

of the Office. 

§ 1702. Chief Acquisition Officers and senior procurement 

executives 

(a) APPOINTMENT OR DESIGNATION OF CHIEF ACQUISITION

OFFICER.—The head of each executive agency described in section 

901(b)(1) (other than the Department of Defense) or 901(b)(2)(C) 

of title 31 with a Chief Financial Officer appointed or designated 

under section 901(a) of title 31 shall appoint or designate a noncareer employee as Chief Acquisition Officer for the agency. 

(b) AUTHORITY AND FUNCTIONS OF CHIEF ACQUISITION OFFICER.— (1) PRIMARY DUTY.—The primary duty of a Chief Acquisition 

Officer is acquisition management. 

(2) ADVICE AND ASSISTANCE.—A Chief Acquisition Officer 

shall advise and assist the head of the executive agency and 

other agency officials to ensure that the mission of the executive 

agency is achieved through the management of the agency’s 

acquisition activities. 

(3) OTHER FUNCTIONS.—The functions of each Chief Acquisition Officer include— 

(A) monitoring the performance of acquisition activities 

and acquisition programs of the executive agency, evaluating the performance of those programs on the basis of 

applicable performance measurements, and advising the 

head of the executive agency regarding the appropriate 

business strategy to achieve the mission of the executive 

agency; 

(B) increasing the use of full and open competition in 

the acquisition of property and services by the executive 

agency by establishing policies, procedures, and practices 

that ensure that the executive agency receives a sufficient 

number of sealed bids or competitive proposals from responsible sources to fulfill the Federal Government’s requirements (including performance and delivery schedules) at 

the lowest cost or best value considering the nature of 

the property or service procured; 

(C) increasing appropriate use of performance-based contracting and performance specifications; 

(D) making acquisition decisions consistent with all 

applicable laws and establishing clear lines of authority, 

accountability, and responsibility for acquisition decisionmaking within the executive agency; 

(E) managing the direction of acquisition policy for the 

executive agency, including implementation of the unique 

acquisition policies, regulations, and standards of the 

executive agency; 

(F) developing and maintaining an acquisition career 

management program in the executive agency to ensure 

that there is an adequate professional workforce; and 

(G) as part of the strategic planning and performance 

evaluation process required under section 306 of title 5 

and sections 1105(a)(28), 1115, 1116, and 9703 (added by 

section 5(a) of Public Law 103–62 (107 Stat. 289)) of title 

31— 
H. R. 1107—26 

(i) assessing the requirements established for agency 

personnel regarding knowledge and skill in acquisition 

resources management and the adequacy of those 

requirements for facilitating the achievement of the 

performance goals established for acquisition management; 

(ii) developing strategies and specific plans for hiring, 

training, and professional development to rectify a deficiency in meeting those requirements; and 

(iii) reporting to the head of the executive agency 

on the progress made in improving acquisition management capability. 

(c) SENIOR PROCUREMENT EXECUTIVE.— (1) DESIGNATION.—The head of each executive agency shall 

designate a senior procurement executive. 

(2) RESPONSIBILITY.—The senior procurement executive is 

responsible for management direction of the procurement 

system of the executive agency, including implementation of 

the unique procurement policies, regulations, and standards 

of the executive agency. 

(3) WHEN CHIEF ACQUISITION OFFICER APPOINTED OR DES- IGNATED.—For an executive agency for which a Chief Acquisition Officer has been appointed or designated under subsection 

(a), the head of the executive agency shall— 

(A) designate the Chief Acquisition Officer as the senior 

procurement executive for the executive agency; or 

(B) ensure that the senior procurement executive designated under paragraph (1) reports directly to the Chief 

Acquisition Officer without intervening authority. 

§ 1703. Acquisition workforce 

(a) DESCRIPTION.—For purposes of this section, the acquisition 

workforce of an agency consists of all employees serving in acquisition positions listed in subsection (g)(1)(A). 

(b) APPLICABILITY.— (1) NONAPPLICABILITY TO CERTAIN EXECUTIVE AGENCIES.— Except as provided in subsection (i), this section does not apply 

to an executive agency that is subject to chapter 87 of title 

10. 

(2) APPLICABILITY OF PROGRAMS.—The programs established 

by this section apply to the acquisition workforce of each executive agency. 

(c) MANAGEMENT POLICIES.— 

(1) DUTIES OF HEAD OF EXECUTIVE AGENCY.— 

(A) ESTABLISH POLICIES AND PROCEDURES.—After consultation with the Administrator, the head of each executive agency shall establish policies and procedures for the 

effective management (including accession, education, 

training, career development, and performance incentives) 

of the acquisition workforce of the agency. The development 

of acquisition workforce policies under this section shall 

be carried out consistent with the merit system principles 

set forth in section 2301(b) of title 5. 

(B) ENSURE UNIFORM IMPLEMENTATION.—The head of 

each executive agency shall ensure that, to the maximum 

extent practicable, acquisition workforce policies and procedures established are uniform in their implementation 

throughout the agency. 
H. R. 1107—27 

(2) DUTIES OF ADMINISTRATOR.—The Administrator shall 

issue policies to promote uniform implementation of this section 

by executive agencies, with due regard for differences in program requirements among agencies that may be appropriate 

and warranted in view of the agency mission. The Administrator shall coordinate with the Deputy Director for Management of the Office of Management and Budget to ensure that 

the policies are consistent with the policies and procedures 

established, and enhanced system of incentives provided, pursuant to section 5051(c) of the Federal Acquisition Streamlining 

Act of 1994 (Public Law 103–355, 108 Stat. 3351). The Administrator shall evaluate the implementation of this section by 

executive agencies. 

(d) AUTHORITY AND RESPONSIBILITY OF SENIOR PROCUREMENT

EXECUTIVE.—Subject to the authority, direction, and control of the 

head of an executive agency, the senior procurement executive 

of the agency shall carry out all powers, functions, and duties 

of the head of the agency with respect to implementing this section. 

The senior procurement executive shall ensure that the policies 

of the head of the executive agency established in accordance with 

this section are implemented throughout the agency. 

(e) COLLECTING AND MAINTAINING INFORMATION.—The Administrator shall ensure that the heads of executive agencies collect 

and maintain standardized information on the acquisition workforce 

related to implementing this section. To the maximum extent practicable, information requirements shall conform to standards the 

Director of the Office of Personnel Management establishes for 

the Central Personnel Data File. 

(f) CAREER DEVELOPMENT.— (1) CAREER PATHS.— (A) IDENTIFICATION.—The head of each executive agency 

shall ensure that appropriate career paths for personnel 

who desire to pursue careers in acquisition are identified 

in terms of the education, training, experience, and assignments necessary for career progression to the most senior 

acquisition positions. The head of each executive agency 

shall make available information on those career paths. 

(B) CRITICAL DUTIES AND TASKS.—For each career path, 

the head of each executive agency shall identify the critical 

acquisition-related duties and tasks in which, at minimum, 

employees of the agency in the career path shall be competent to perform at full performance grade levels. For 

this purpose, the head of the executive agency shall provide 

appropriate coverage of the critical duties and tasks identified by the Director of the Federal Acquisition Institute. 

(C) MANDATORY TRAINING AND EDUCATION.—For each 

career path, the head of each executive agency shall establish requirements for the completion of course work and 

related on-the-job training in the critical acquisition-related 

duties and tasks of the career path. The head of each 

executive agency also shall encourage employees to maintain the currency of their acquisition knowledge and generally enhance their knowledge of related acquisition 

management disciplines through academic programs and 

other self-developmental activities. 

(2) PERFORMANCE INCENTIVES.—The head of each executive 

agency shall provide for an enhanced system of incentives to 

encourage excellence in the acquisition workforce that rewards 
H. R. 1107—28 

performance of employees who contribute to achieving the 

agency’s performance goals. The system of incentives shall 

include provisions that— 

(A) relate pay to performance (including the extent to 

which the performance of personnel in the workforce 

contributes to achieving the cost goals, schedule goals, and 

performance goals established for acquisition programs 

pursuant to section 3103(b) of this title); and 

(B) provide for consideration, in personnel evaluations 

and promotion decisions, of the extent to which the 

performance of personnel in the workforce contributes to 

achieving the cost goals, schedule goals, and performance 

goals. 

(g) QUALIFICATION REQUIREMENTS.— (1) IN GENERAL.—Subject to paragraph (2), the Administrator 

shall— 

(A) establish qualification requirements, including education requirements, for— 

(i) entry-level positions in the General Schedule Contracting series (GS–1102); 

(ii) senior positions in the General Schedule Contracting series (GS–1102); 

(iii) all positions in the General Schedule Purchasing 

series (GS–1105); and 

(iv) positions in other General Schedule series in 

which significant acquisition-related functions are performed; and 

(B) prescribe the manner and extent to which the qualification requirements shall apply to an individual serving 

in a position described in subparagraph (A) at the time 

the requirements are established. 

(2) RELATIONSHIP TO REQUIREMENTS APPLICABLE TO DEFENSE

ACQUISITION WORKFORCE.—The Administrator shall establish 

qualification requirements and make prescriptions under paragraph (1) that are comparable to those established for the 

same or equivalent positions pursuant to chapter 87 of title 

10 with appropriate modifications. 

(3) APPROVAL OF REQUIREMENTS.—The Administrator shall 

submit any requirement established or prescription made under 

paragraph (1) to the Director of the Office of Personnel Management for approval. The Director is deemed to have approved 

the requirement or prescription if the Director does not disapprove the requirement or prescription within 30 days after 

receiving it. 

(h) EDUCATION AND TRAINING.— 

(1) FUNDING LEVELS.—The head of an executive agency shall 

set forth separately the funding levels requested for educating 

and training the acquisition workforce in the budget justification documents submitted in support of the President’s budget 

submitted to Congress under section 1105 of title 31. 

(2) TUITION ASSISTANCE.—The head of an executive agency 

may provide tuition reimbursement in education (including a 

full-time course of study leading to a degree) in accordance 

with section 4107 of title 5 for personnel serving in acquisition 

positions in the agency. 

(3) RESTRICTED OBLIGATION.—Amounts appropriated for education and training under this section may not be obligated 

for another purpose. 
H. R. 1107—29 

(i) TRAINING FUND.— (1) PURPOSES.—The purposes of this subsection are to ensure 

that the Federal acquisition workforce— 

(A) adapts to fundamental changes in the nature of Federal Government acquisition of property and services associated with the changing roles of the Federal Government; 

and 

(B) acquires new skills and a new perspective to enable 

it to contribute effectively in the changing environment 

of the 21st century. 

(2) ESTABLISHMENT AND MANAGEMENT OF FUND.—There is 

an acquisition workforce training fund. The Administrator of 

General Services shall manage the fund through the Federal 

Acquisition Institute to support the training of the acquisition 

workforce of the executive agencies, except as provided in paragraph (5). The Administrator of General Services shall consult 

with the Administrator in managing the fund. 

(3) CREDITS TO FUND.—Five percent of the fees collected 

by executive agencies (other than the Department of Defense) 

under the following contracts shall be credited to the fund: 

(A) Government-wide task and delivery-order contracts 

entered into under sections 4103 and 4105 of this title. 

(B) Government-wide contracts for the acquisition of 

information technology as defined in section 11101 of title 

40 and multiagency acquisition contracts for that technology authorized by section 11314 of title 40. 

(C) multiple-award schedule contracts entered into by 

the Administrator of General Services. 

(4) REMITTANCE BY HEAD OF EXECUTIVE AGENCY.—The head 

of an executive agency that administers a contract described 

in paragraph (3) shall remit to the General Services Administration the amount required to be credited to the fund with respect 

to the contract at the end of each quarter of the fiscal year. 

(5) TRANSFER AND USE OF FEES COLLECTED FROM DEPARTMENT

OF DEFENSE.—The Administrator of General Services shall 

transfer to the Secretary of Defense fees collected from the 

Department of Defense pursuant to paragraph (3). The Defense 

Acquisition University shall use the fees for acquisition 

workforce training. 

(6) AMOUNTS NOT TO BE USED FOR OTHER PURPOSES.—The 

Administrator of General Services, through the Office of Federal 

Procurememt Policy, shall ensure that amounts collected for 

training under this subsection are not used for a purpose other 

than the purpose specified in paragraph (2). 

(7) AMOUNTS ARE IN ADDITION TO OTHER AMOUNTS FOR EDUCATION AND TRAINING.—Amounts credited to the fund are in 

addition to amounts requested and appropriated for education 

and training referred to in subsection (h)(1). 

(8) AVAILABILITY OF AMOUNTS.—Amounts credited to the fund 

remain available to be expended only in the fiscal year for 

which they are credited and the 2 succeeding fiscal years. 

(j) RECRUITMENT PROGRAM.— 

(1) SHORTAGE CATEGORY POSITIONS.—For purposes of sections 

3304, 5333, and 5753 of title 5, the head of a department 

or agency of the Federal Government (other than the Secretary 

of Defense) may determine, under regulations prescribed by 

the Office of Personnel Management, that certain Federal 

acquisition positions (as described in subsection (g)(1)(A)) are 
H. R. 1107—30 

shortage category positions in order to use the authorities in 

those sections to recruit and appoint highly qualified individuals directly to those positions in the department or agency. 

(2) TERMINATION OF AUTHORITY.—The head of a department 

or agency may not appoint an individual to a position of employment under this subsection after September 30, 2012. 

(k) REEMPLOYMENT WITHOUT LOSS OF ANNUITY.— (1) ESTABLISHMENT OF POLICIES AND PROCEDURES.—The head 

of each executive agency, after consultation with the Administrator and the Director of the Office of Personnel Management, 

shall establish policies and procedures under which the agency 

head may reemploy in an acquisition-related position (as 

described in subsection (g)(1)(A)) an individual receiving an 

annuity from the Civil Service Retirement and Disability Fund, 

on the basis of the individual’s service, without discontinuing 

the annuity. The head of each executive agency shall keep 

the Administrator informed of the agency’s use of this authority. 

(2) CRITERIA FOR CONTINUATION OF ANNUITY.—Policies and 

procedures established under paragraph (1) shall authorize the 

head of the executive agency, on a case-by-case basis, to continue an annuity if any of the following makes the reemployment of an individual essential: 

(A) The unusually high or unique qualifications of an 

individual receiving an annuity from the Civil Service 

Retirement and Disability Fund on the basis of the individual’s service. 

(B) The exceptional difficulty in recruiting or retaining 

a qualified employee. 

(C) A temporary emergency hiring need. 

(3) SERVICE NOT SUBJECT TO CSRS OR FERS.—An individual 

reemployed under this subsection shall not be deemed an 

employee for purposes of chapter 83 or 84 of title 5. 

(4) REPORTING REQUIREMENT.—The Administrator shall 

submit annually to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the 

Senate a report on the use of the authority under this subsection, including the number of employees reemployed under 

authority of this subsection. 

(5) SUNSET PROVISION.—The authority under this subsection 

expires on December 31, 2011. 

§ 1704. Planning and policy-making for acquisition 

workforce 

(a) DEFINITIONS.—In this section: 

(1) ASSOCIATE ADMINISTRATOR.—The term ‘‘Associate 

Administrator’’ means the Associate Administrator for Acquisition Workforce Programs as designated by the Administrator 

pursuant to subsection (b). 

(2) CHIEF ACQUISITION OFFICER.—The term ‘‘Chief Acquisition Officer’’ means a Chief Acquisition Officer for an executive 

agency appointed pursuant to section 1702 of this title. 

(b) ASSOCIATE ADMINISTRATOR FOR ACQUISITION WORKFORCE PRO- GRAMS.—The Administrator shall designate a member of the Senior 

Executive Service as the Associate Administrator for Acquisition 

Workforce Programs. The Associate Administrator shall be located 

in the Federal Acquisition Institute (or its successor). The Associate 

Administrator shall be responsible for— 
H. R. 1107—31 

(1) supervising the acquisition workforce training fund established under section 1703(i) of this title; 

(2) developing, in coordination with Chief Acquisition Officers 

and Chief Human Capital Officers, a strategic human capital 

plan for the acquisition workforce of the Federal Government; 

(3) reviewing and providing input to individual agency 

acquisition workforce succession plans; 

(4) recommending to the Administrator and other senior 

government officials appropriate programs, policies, and practices to increase the quantity and quality of the Federal acquisition workforce; and 

(5) carrying out other functions that the Administrator may 

assign. 

(c) ACQUISITION AND CONTRACTING TRAINING PROGRAMS WITHIN

EXECUTIVE AGENCIES.— (1) CHIEF ACQUISITION OFFICER AUTHORITIES AND RESPON- SIBILITIES.—Subject to the authority, direction, and control of 

the head of an executive agency, the Chief Acquisition Officer 

for that agency shall carry out all powers, functions, and duties 

of the head of the agency with respect to implementation of 

this subsection. The Chief Acquisition Officer shall ensure that 

the policies established by the head of the agency in accordance 

with this subsection are implemented throughout the agency. 

(2) REQUIREMENT.—The head of each executive agency, after 

consultation with the Associate Administrator, shall establish 

and operate acquisition and contracting training programs. The 

programs shall— 

(A) have curricula covering a broad range of acquisition 

and contracting disciplines corresponding to the specific 

acquisition and contracting needs of the agency involved; 

(B) be developed and applied according to rigorous standards; and 

(C) be designed to maximize efficiency, through the use 

of self-paced courses, online courses, on-the-job training, 

and the use of remote instructors, wherever those features 

can be applied without reducing the effectiveness of the 

training or negatively affecting academic standards. 

(d) GOVERNMENT-WIDE POLICIES AND EVALUATION.—The Administrator shall issue policies to promote the development of performance standards for training and uniform implementation of this 

section by executive agencies, with due regard for differences in 

program requirements among agencies that may be appropriate 

and warranted in view of the agency mission. The Administrator 

shall evaluate the implementation of the provisions of subsection 

(c) by executive agencies. 

(e) INFORMATION ON ACQUISITION AND CONTRACTING TRAINING.— 

The Administrator shall ensure that the heads of executive agencies 

collect and maintain standardized information on the acquisition 

and contracting workforce related to the implementation of subsection (c). 

(f) ACQUISITION WORKFORCE HUMAN CAPITAL SUCCESSION

PLAN.— 

(1) IN GENERAL.—Each Chief Acquisition Officer for an executive agency shall develop, in consultation with the Chief Human 

Capital Officer for the agency and the Associate Administrator, 

a succession plan consistent with the agency’s strategic human 

capital plan for the recruitment, development, and retention 

of the agency’s acquisition workforce, with a particular focus 
H. R. 1107—32 

on warranted contracting officers and program managers of 

the agency. 

(2) CONTENT OF PLAN.—The acquisition workforce succession 

plan shall address— 

(A) recruitment goals for personnel from procurement 

intern programs; 

(B) the agency’s acquisition workforce training needs; 

(C) actions to retain high performing acquisition professionals who possess critical relevant skills; 

(D) recruitment goals for personnel from the Federal 

Career Intern Program; and 

(E) recruitment goals for personnel from the Presidential 

Management Fellows Program. 

(g) ACQUISITION WORKFORCE DEVELOPMENT STRATEGIC PLAN.— (1) PURPOSE.—The purpose of this subsection is to authorize 

the preparation and completion of the Acquisition Workforce 

Development Strategic Plan, which is a plan for Federal agencies other than the Department of Defense to— 

(A) develop a specific and actionable 5-year plan to 

increase the size of the acquisition workforce; and 

(B) operate a government-wide acquisition intern program for the Federal agencies. 

(2) ESTABLISHMENT OF PLAN.—The Associate Administrator 

shall be responsible for the management, oversight, and 

administration of the Acquisition Workforce Development Strategic Plan in cooperation and consultation with the Office of 

Federal Procurement Policy and with the assistance of the 

Federal Acquisition Institute. 

(3) CRITERIA.—The Acquisition Workforce Development Strategic Plan shall include an examination of the following matters: 

(A) The variety and complexity of acquisitions conducted 

by each Federal agency covered by the plan, and the 

workforce needed to effectively carry out the acquisitions. 

(B) The development of a sustainable funding model to 

support efforts to hire, retain, and train an acquisition 

workforce of appropriate size and skill to effectively carry 

out the acquisition programs of the Federal agencies covered by the plan, including an examination of interagency 

funding methods and a discussion of how the model of 

the Defense Acquisition Workforce Development Fund 

could be applied to civilian agencies. 

(C) Any strategic human capital planning necessary to 

hire, retain, and train an acquisition workforce of appropriate size and skill at each Federal agency covered by 

the plan. 

(D) Methodologies that Federal agencies covered by the 

plan can use to project future acquisition workforce personnel hiring requirements, including an appropriate distribution of such personnel across each category of positions 

designated as acquisition workforce personnel under section 

1703(g) of this title. 

(E) Government-wide training standards and certification 

requirements necessary to enhance the mobility and career 

opportunities of the Federal acquisition workforce within 

the Federal agencies covered by the plan. 

(F) If the Associate Administrator recommends as part 

of the plan a growth in the acquisition workforce of the 
H. R. 1107—33 

Federal agencies covered by the plan below 25 percent 

over the next 5 years, an examination of each of the matters 

specified in subparagraphs (A) to (E) in the context of 

a 5-year plan that increases the size of such acquisition 

workforce by not less than 25 percent, or an explanation 

why such a level of growth would not be in the best interest 

of the Federal Government. 

(4) DEADLINE FOR COMPLETION.—The Acquisition Workforce 

Development Strategic Plan shall be completed not later than 

one year after October 14, 2008, and in a fashion that allows 

for immediate implementation of its recommendations and 

guidelines. 

(5) FUNDS.—The acquisition workforce development strategic 

plan shall be funded from the acquisition workforce training 

fund under section 1703(i) of this title. 

(h) TRAINING IN THE ACQUISITION OF ARCHITECT AND

ENGINEERING SERVICES.—The Administrator shall ensure that a 

sufficient number of Federal employees are trained in the acquisition of architect and engineering services. 

(i) UTILIZATION OF RECRUITMENT AND RETENTION AUTHORITIES.— 

The Administrator, in coordination with the Director of the Office 

of Personnel Management, shall encourage executive agencies to 

use existing authorities, including direct hire authority and tuition 

assistance programs, to recruit and retain acquisition personnel 

and consider recruiting acquisition personnel who may be retiring 

from the private sector, consistent with existing laws and regulations. 

§ 1705. Advocates for competition 

(a) ESTABLISHMENT AND DESIGNATION.— 

(1) ESTABLISHMENT.—Each executive agency has an advocate 

for competition. 

(2) DESIGNATION.—The head of each executive agency shall— 

(A) designate for the executive agency and for each procuring activity of the executive agency one officer or 

employee serving in a position authorized for the executive 

agency on July 18, 1984 (other than the senior procurement 

executive designated pursuant to section 1702(c) of this 

title) to serve as the advocate for competition; 

(B) not assign those officers or employees duties or 

responsibilities that are inconsistent with the duties and 

responsibilities of the advocates for competition; and 

(C) provide those officers or employees with the staff 

or assistance necessary to carry out the duties and responsibilities of the advocate for competition, such as individuals who are specialists in engineering, technical operations, contract administration, financial management, 

supply management, and utilization of small and disadvantaged business concerns. 

(b) DUTIES AND FUNCTIONS.—The advocate for competition of 

an executive agency shall— 

(1) be responsible for challenging barriers to, and promoting 

full and open competition in, the procurement of property and 

services by the executive agency; 

(2) review the procurement activities of the executive agency; 

(3) identify and report to the senior procurement executive 

of the executive agency— 
H. R. 1107—34 

(A) opportunities and actions taken to achieve full and 

open competition in the procurement activities of the executive agency; and 

(B) any condition or action which has the effect of 

unnecessarily restricting competition in the procurement 

actions of the executive agency; 

(4) prepare and transmit to the senior procurement executive 

an annual report describing— 

(A) the advocate’s activities under this section; 

(B) new initiatives required to increase competition; and 

(C) remaining barriers to full and open competition; 

(5) recommend to the senior procurement executive— 

(A) goals and the plans for increasing competition on 

a fiscal year basis; and 

(B) a system of personal and organizational accountability for competition, which may include the use of recognition and awards to motivate program managers, contracting officers, and others in authority to promote competition in procurement programs; and 

(6) describe other ways in which the executive agency has 

emphasized competition in programs for procurement training 

and research. 

(c) RESPONSIBILITIES.—The advocate for competition for each procuring activity is responsible for promoting full and open competition, promoting the acquisition of commercial items, and challenging 

barriers to acquisition, including unnecessarily restrictive statements of need, unnecessarily detailed specifications, and unnecessarily burdensome contract clauses. 

§ 1706. Personnel evaluation 

The head of each executive agency subject to division C shall 

ensure, with respect to the employees of that agency whose primary 

duties and responsibilities pertain to the award of contracts subject 

to the provisions of the Small Business and Federal Procurement 

Competition Enhancement Act of 1984 (Public Law 98–577, 98 

Stat. 3066), that the performance appraisal system applicable to 

those employees affords appropriate recognition to, among other 

factors, efforts to— 

(1) increase competition and achieve cost savings through 

the elimination of procedures that unnecessarily inhibit full 

and open competition; 

(2) further the purposes of the Small Business and Federal 

Procurement Competition Enhancement Act of 1984 (Public 

Law 98–577, 98 Stat. 3066) and the Defense Procurement 

Reform Act of 1984 (Public Law 98–525, title XII, 98 Stat. 

2588); and 

(3) further other objectives and purposes of the Federal 

acquisition system authorized by law. 

§ 1707. Publication of proposed regulations 

(a) COVERED POLICIES, REGULATIONS, PROCEDURES, AND FORMS.— 

(1) REQUIRED COMMENT PERIOD.—Except as provided in subsection (d), a procurement policy, regulation, procedure, or form 

(including an amendment or modification thereto) may not 

take effect until 60 days after it is published for public comment 

in the Federal Register pursuant to subsection (b) if it— 

(A) relates to the expenditure of appropriated funds; 

and 
H. R. 1107—35 

(B)(i) has a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form; or 

(ii) has a significant cost or administrative impact on 

contractors or offerors. 

(2) EXCEPTION.—A policy, regulation, procedure, or form may 

take effect earlier than 60 days after the publication date 

when there are compelling circumstances for the earlier effective date, but the effective date may not be less than 30 days 

after the publication date. 

(b) PUBLICATION IN FEDERAL REGISTER AND COMMENT PERIOD.— Subject to subsection (c), the head of the agency shall have published in the Federal Register a notice of the proposed procurement 

policy, regulation, procedure, or form and provide for a public comment period for receiving and considering the views of all interested 

parties on the proposal. The length of the comment period may 

not be less than 30 days. 

(c) CONTENTS OF NOTICE.—Notice of a proposed procurement 

policy, regulation, procedure, or form prepared for publication in 

the Federal Register shall include— 

(1) the text of the proposal or, if it is impracticable to publish 

the full text of the proposal, a summary of the proposal and 

a statement specifying the name, address, and telephone 

number of the officer or employee of the executive agency 

from whom the full text may be obtained; and 

(2) a request for interested parties to submit comments on 

the proposal and the name and address of the officer or 

employee of the Federal Government designated to receive the 

comments. 

(d) WAIVER.—The requirements of subsections (a) and (b) may 

be waived by the officer authorized to issue a procurement policy, 

regulation, procedure, or form if urgent and compelling circumstances make compliance with the requirements impracticable. 

(e) EFFECTIVENESS OF POLICY, REGULATION, PROCEDURE, OR

FORM.— 

(1) TEMPORARY BASIS.—A procurement policy, regulation, 

procedure, or form for which the requirements of subsections 

(a) and (b) are waived under subsection (d) is effective on 

a temporary basis if— 

(A) a notice of the policy, regulation, procedure, or form 

is published in the Federal Register and includes a statement that the policy, regulation, procedure, or form is 

temporary; and 

(B) provision is made for a public comment period of 

30 days beginning on the date on which the notice is 

published. 

(2) FINAL POLICY, REGULATION, PROCEDURE, OR FORM.—After 

considering the comments received, the head of the agency 

waiving the requirements of subsections (a) and (b) under subsection (d) may issue the final procurement policy, regulation, 

procedure, or form. 

§ 1708. Procurement notice 

(a) NOTICE REQUIREMENT.—Except as provided in subsection (b)— 

(1) an executive agency intending to solicit bids or proposals 

for a contract for property or services for a price expected 

to exceed $10,000, but not to exceed $25,000, shall post, for 

not less than 10 days, in a public place at the contracting 
H. R. 1107—36 

office issuing the solicitation a notice of solicitation described 

in subsection (c); 

(2) an executive agency shall publish a notice of solicitation 

described in subsection (c) if the agency intends to— 

(A) solicit bids or proposals for a contract for property 

or services for a price expected to exceed $25,000; or 

(B) place an order, expected to exceed $25,000, under 

a basic agreement, basic ordering agreement, or similar 

arrangement; and 

(3) an executive agency awarding a contract for property 

or services for a price exceeding $25,000, or placing an order 

exceeding $25,000 under a basic agreement, basic ordering 

agreement, or similar arrangement, shall furnish for publication 

a notice announcing the award or order if there is likely to 

be a subcontract under the contract or order. 

(b) EXEMPTIONS.— 

(1) IN GENERAL.—A notice is not required under subsection 

(a) if— 

(A) the proposed procurement is for an amount not 

greater than the simplified acquisition threshold and is 

to be conducted by— 

(i) using widespread electronic public notice of the 

solicitation in a form that allows convenient and universal user access through a single, Government-wide 

point of entry; and 

(ii) permitting the public to respond to the solicitation electronically; 

(B) the notice would disclose the executive agency’s needs 

and disclosure would compromise national security; 

(C) the proposed procurement would result from acceptance of— 

(i) an unsolicited proposal that demonstrates a 

unique and innovative research concept and publication of a notice of the unsolicited research proposal 

would disclose the originality of thought or innovativeness of the proposal or would disclose proprietary 

information associated with the proposal; or 

(ii) a proposal submitted under section 9 of the Small 

Business Act (15 U.S.C. 638); 

(D) the procurement is made against an order placed 

under a requirements contract, a task order contract, or 

a delivery order contract; 

(E) the procurement is made for perishable subsistence 

supplies; 

(F) the procurement is for utility services, other than 

telecommunication services, and only one source is available; or 

(G) the procurement is for the services of an expert 

for use in any litigation or dispute (including any reasonably foreseeable litigation or dispute) involving the Federal 

Government in a trial, hearing, or proceeding before a 

court, administrative tribunal, or agency, or in any part 

of an alternative dispute resolution process, whether or 

not the expert is expected to testify. 

(2) CERTAIN PROCUREMENTS.—The requirements of subsection 

(a)(2) do not apply to a procurement— 
H. R. 1107—37 

(A) under conditions described in paragraph (2), (3), (4), 

(5), or (7) of section 3304(a) of this title or paragraph 

(2), (3), (4), (5), or (7) of section 2304(c) of title 10; or 

(B) for which the head of the executive agency makes 

a determination in writing, after consultation with the 

Administrator and the Administrator of the Small Business 

Administration, that it is not appropriate or reasonable 

to publish a notice before issuing a solicitation. 

(3) IMPLEMENTATION CONSISTENT WITH INTERNATIONAL

AGREEMENTS.—Paragraph (1)(A) shall be implemented in a 

manner consistent with applicable international agreements. 

(c) CONTENTS OF NOTICE.—Each notice of solicitation required 

by paragraph (1) or (2) of subsection (a) shall include— 

(1) an accurate description of the property or services to 

be contracted for, which description— 

(A) shall not be unnecessarily restrictive of competition; 

and 

(B) shall include, as appropriate, the agency nomenclature, National Stock Number or other part number, 

and a brief description of the item’s form, fit, or function, 

physical dimensions, predominant material of manufacture, 

or similar information that will assist a prospective contractor to make an informed business judgment as to 

whether a copy of the solicitation should be requested; 

(2) provisions that— 

(A)(i) state whether the technical data required to 

respond to the solicitation will not be furnished as part 

of the solicitation; and 

(ii) identify the source in the Federal Government, if 

any, from which the technical data may be obtained; and 

(B)(i) state whether an offeror or its product or service 

must meet a qualification requirement in order to be 

eligible for award; and 

(ii) if so, identify the office from which the qualification 

requirement may be obtained; 

(3) the name, business address, and telephone number of 

the contracting officer; 

(4) a statement that all responsible sources may submit a 

bid, proposal, or quotation (as appropriate) that the agency 

shall consider; 

(5) in the case of a procurement using procedures other 

than competitive procedures, a statement of the reason justifying the use of those procedures and the identity of the 

intended source; and 

(6) in the case of a contract in an amount estimated to 

be greater than $25,000 but not greater than the simplified 

acquisition threshold, or a contract for the procurement of 

commercial items using special simplified procedures— 

(A) a description of the procedures to be used in awarding 

the contract; and 

(B) a statement specifying the periods for prospective 

offerors and the contracting officer to take the necessary 

preaward and award actions. 

(d) ELECTRONIC PUBLICATION OF NOTICE OF SOLICITATION, AWARD, 

OR ORDER.—A notice of solicitation, award, or order required to 

be published under subsection (a) shall be published by electronic 

means. The notice must be electronically accessible in a form that 

allows convenient and universal user access through the single 
H. R. 1107—38 

Government-wide point of entry designated in the Federal Acquisition Regulation. 

(e) TIME LIMITATIONS.— 

(1) ISSUING NOTICE OF SOLICITATION AND ESTABLISHING DEADLINE FOR SUBMITTING BIDS AND PROPOSALS.—An executive 

agency required by subsection (a)(2) to publish a notice of 

solicitation may not— 

(A) issue the solicitation earlier than 15 days after the 

date on which the notice is published; or 

(B) in the case of a contract or order expected to be 

greater than the simplified acquisition threshold, establish 

a deadline for the submission of all bids or proposals in 

response to the notice required by subsection (a)(2) that— 

(i) in the case of a solicitation for research and 

development, is earlier than 45 days after the date 

the notice required for a bid or proposal for a contract 

described in subsection (a)(2)(A) is published; 

(ii) in the case of an order under a basic agreement, 

basic ordering agreement, or similar arrangement, is 

earlier than 30 days after the date the notice required 

for an order described in subsection (a)(2)(B) is published; or 

(iii) in any other case, is earlier than 30 days after 

the date the solicitation is issued. 

(2) ESTABLISHING DEADLINE WHEN NONE PROVIDED BY

STATUTE.—An executive agency shall establish a deadline for 

the submission of all bids or proposals in response to a solicitation for which a deadline is not provided by statute. Each 

deadline for the submission of offers shall afford potential 

offerors a reasonable opportunity to respond. 

(3) FLEXIBLE DEADLINES.—The Administrator shall prescribe 

regulations defining limited circumstances in which flexible 

deadlines can be used under paragraph (1) for the issuance 

of solicitations and the submission of bids or proposals for 

the procurement of commercial items. 

(f) CONSIDERATION OF CERTAIN TIMELY RECEIVED OFFERS.—An 

executive agency intending to solicit offers for a contract for which 

a notice of solicitation is required to be posted under subsection 

(a)(1) shall ensure that contracting officers consider each responsive 

offer timely received from an offeror. 

(g) AVAILABILITY OF COMPLETE SOLICITATION PACKAGE AND PAYMENT OF FEE.—An executive agency shall make available to a 

business concern, or the authorized representative of a concern, 

the complete solicitation package for any on-going procurement 

announced pursuant to a notice of solicitation under subsection 

(a). An executive agency may require the payment of a fee, not 

exceeding the actual cost of duplication, for a copy of the package. 

§ 1709. Contracting functions performed by Federal personnel 

(a) COVERED PERSONNEL.—Personnel referred to in subsection 

(b) are— 

(1) an employee, as defined in section 2105 of title 5; 

(2) a member of the armed forces; and 

(3) an individual assigned to a Federal agency pursuant 

to subchapter VI of chapter 33 of title 5. 
H. R. 1107—39 

(b) LIMITATION ON PAYMENT FOR ADVISORY AND ASSISTANCE SERV- ICES.—No individual who is not an individual described in subsection (a) may be paid by an executive agency for services to 

conduct evaluations or analyses of any aspect of a proposal submitted for an acquisition unless personnel described in subsection 

(a) with adequate training and capabilities to perform the evaluations and analyses are not readily available in the agency or another 

Federal agency. When administering this subsection, the head of 

each executive agency shall determine in accordance with standards 

and procedures prescribed in the Federal Acquisition Regulation 

whether— 

(1) a sufficient number of personnel described in subsection 

(a) in the agency or another Federal agency are readily available to perform a particular evaluation or analysis for the 

head of the executive agency making the determination; and 

(2) the readily available personnel have the training and 

capabilities necessary to perform the evaluation or analysis. 

(c) CERTAIN RELATIONSHIP NOT AFFECTED.—This section does 

not affect the relationship between the Federal Government and 

a Federally funded research and development center. 

§ 1710. Public-private competition required before conversion to contractor performance 

(a) PUBLIC-PRIVATE COMPETITION.— (1) WHEN CONVERSION TO CONTRACTOR PERFORMANCE IS

ALLOWED.—A function of an executive agency performed by 

10 or more agency civilian employees may not be converted, 

in whole or in part, to performance by a contractor unless 

the conversion is based on the results of a public-private competition that— 

(A) formally compares the cost of performance of the 

function by agency civilian employees with the cost of 

performance by a contractor; 

(B) creates an agency tender, including a most efficient 

organization plan, in accordance with Office of Management 

and Budget Circular A76, as implemented on May 29, 

2003, or any successor circular; 

(C) includes the issuance of a solicitation; 

(D) determines whether the submitted offers meet the 

needs of the executive agency with respect to factors other 

than cost, including quality, reliability, and timeliness; 

(E) examines the cost of performance of the function 

by agency civilian employees and the cost of performance 

of the function by one or more contractors to demonstrate 

whether converting to performance by a contractor will 

result in savings to the Federal Government over the life 

of the contract, including— 

(i) the estimated cost to the Federal Government 

(based on offers received) for performance of the function by a contractor; 

(ii) the estimated cost to the Federal Government 

for performance of the function by agency civilian 

employees; and 

(iii) an estimate of all other costs and expenditures 

that the Federal Government would incur because of 

the award of the contract; 

(F) requires continued performance of the function by 

agency civilian employees unless the difference in the cost 
H. R. 1107—40 

of performance of the function by a contractor compared 

to the cost of performance of the function by agency civilian 

employees would, over all performance periods required 

by the solicitation, be equal to or exceed the lesser of— 

(i) 10 percent of the personnel-related costs for 

performance of that function in the agency tender; 

or 

(ii) $10,000,000; and 

(G) examines the effect of performance of the function 

by a contractor on the agency mission associated with 

the performance of the function. 

(2) NOT A NEW REQUIREMENT.—A function that is performed 

by the executive agency and is reengineered, reorganized, modernized, upgraded, expanded, or changed to become more efficient, but still essentially provides the same service, shall not 

be considered a new requirement. 

(3) PROHIBITIONS.—In no case may a function being performed by executive agency personnel be— 

(A) modified, reorganized, divided, or in any way changed 

for the purpose of exempting the conversion of the function 

from the requirements of this section; or 

(B) converted to performance by a contractor to circumvent a civilian personnel ceiling. 

(b) CONSULTING WITH AFFECTED EMPLOYEES OR THEIR REP- RESENTATIVES.— (1) CONSULTING WITH AFFECTED EMPLOYEES.—Each civilian 

employee of an executive agency responsible for determining 

under Office of Management and Budget Circular A76 whether 

to convert to contractor performance any function of the executive agency— 

(A) shall, at least monthly during the development and 

preparation of the performance work statement and the 

management efficiency study used in making that determination, consult with civilian employees who will be 

affected by that determination and consider the views of 

the employees on the development and preparation of that 

statement and that study; and 

(B) may consult with the employees on other matters 

relating to that determination. 

(2) CONSULTING WITH REPRESENTATIVES.— 

(A) EMPLOYEES REPRESENTED BY A LABOR ORGANIZATION.—In the case of employees represented by a labor 

organization accorded exclusive recognition under section 

7111 of title 5, consultation with representatives of that 

labor organization shall satisfy the consultation requirement in paragraph (1). 

(B) EMPLOYEES NOT REPRESENTED BY A LABOR ORGANIZATION.—In the case of employees other than employees 

referred to in subparagraph (A), consultation with appropriate representatives of those employees shall satisfy the 

consultation requirement in paragraph (1). 

(3) REGULATIONS.—The head of each executive agency shall 

prescribe regulations to carry out this subsection. The regulations shall include provisions for the selection or designation 

of appropriate representatives of employees referred to in paragraph (2)(B) for purposes of consultation required by paragraph 

(1). 

(c) CONGRESSIONAL NOTIFICATION.— 
H. R. 1107—41 

(1) REPORT.—Before commencing a public-private competition 

under subsection (a), the head of an executive agency shall 

submit to Congress a report containing the following: 

(A) The function for which the public-private competition 

is to be conducted. 

(B) The location at which the function is performed by 

agency civilian employees. 

(C) The number of agency civilian employee positions 

potentially affected. 

(D) The anticipated length and cost of the public-private 

competition, and a specific identification of the budgetary 

line item from which funds will be used to cover the cost 

of the public-private competition. 

(E) A certification that a proposed performance of the 

function by a contractor is not a result of a decision by 

an official of an executive agency to impose predetermined 

constraints or limitations on agency civilian employees in 

terms of man years, end strengths, full-time equivalent 

positions, or maximum number of employees. 

(2) EXAMINATION OF POTENTIAL ECONOMIC EFFECT.—The 

report required under paragraph (1) shall include an examination of the potential economic effect of performance of the 

function by a contractor on— 

(A) agency civilian employees who would be affected by 

such a conversion in performance; and 

(B) the local community and the Federal Government, 

if more than 50 agency civilian employees perform the 

function. 

(3) OBJECTIONS TO PUBLIC-PRIVATE COMPETITION.— 

(A) GROUNDS.—A representative individual or entity at 

a facility where a public-private competition is conducted 

may submit to the head of the executive agency an objection 

to the public-private competition on the grounds that— 

(i) the report required by paragraph (1) has not 

been submitted; or 

(ii) the certification required by paragraph (1)(E) 

was not included in the report required by paragraph 

(1). 

(B) DEADLINES.—The objection shall be in writing and 

shall be submitted within 90 days after the following date: 

(i) In the case of a failure to submit the report 

when required, the date on which the representative 

individual or an official of the representative entity 

authorized to pose the objection first knew or should 

have known of that failure. 

(ii) In the case of a failure to include the certification 

in a submitted report, the date on which the report 

was submitted to Congress. 

(C) REPORT AND CERTIFICATION REQUIRED BEFORE SOLICITATION OR AWARD OF CONTRACT.—If the head of the executive agency determines that the report required by paragraph (1) was not submitted or that the required certification was not included in the submitted report, the function for which the public-private competition was conducted 

for which the objection was submitted may not be the 

subject of a solicitation of offers for, or award of, a contract 
H. R. 1107—42 

until, respectively, the report is submitted or a report containing the certification in full compliance with the certification requirement is submitted. 

(d) EXEMPTION FOR THE PURCHASE OF PRODUCTS AND SERVICES

OF THE BLIND AND OTHER SEVERELY DISABLED PEOPLE.—This section shall not apply to a commercial or industrial type function 

of an executive agency that is— 

(1) included on the procurement list established pursuant 

to section 8503 of this title; or 

(2) planned to be changed to performance by a qualified 

nonprofit agency for the blind or by a qualified nonprofit agency 

for other severely disabled people in accordance with chapter 

85 of this title. 

(e) INAPPLICABILITY DURING WAR OR EMERGENCY.—The provisions 

of this section shall not apply during war or during a period of 

national emergency declared by the President or Congress. 

§ 1711. Value engineering 

Each executive agency shall establish and maintain cost-effective 

procedures and processes for analyzing the functions of a program, 

project, system, product, item of equipment, building, facility, 

service, or supply of the agency. The analysis shall be— 

(1) performed by qualified agency or contractor personnel; 

and 

(2) directed at improving performance, reliability, quality, 

safety, and life cycle costs. 

§ 1712. Record requirements 

(a) MAINTAINING RECORDS ON COMPUTER.—Each executive agency 

shall establish and maintain for 5 years a computer file, by fiscal 

year, containing unclassified records of all procurements greater 

than the simplified acquisition threshold in that fiscal year. 

(b) CONTENTS.—The record established under subsection (a) shall 

include, with respect to each procurement carried out using— 

(1) competitive procedures— 

(A) the date of contract award; 

(B) information identifying the source to whom the contract was awarded; 

(C) the property or services the Federal Government 

obtains under the procurement; and 

(D) the total cost of the procurement; or 

(2) procedures other than competitive procedures— 

(A) the information described in paragraph (1); 

(B) the reason under section 3304(a) of this title or section 

2304(c) of title 10 for using the procedures; and 

(C) the identity of the organization or activity that conducted the procurement. 

(c) SEPARATE RECORD CATEGORY FOR PROCUREMENTS RESULTING

IN ONE BID OR PROPOSAL.—Information included in a record pursuant to subsection (b)(1) that relates to procurements resulting in 

the submission of a bid or proposal by only one responsible source 

shall be separately categorized from the information relating to 

other procurements included in the record. The record of that 

information shall be designated ‘‘noncompetitive procurements 

using competitive procedures’’. 

(d) TRANSMISSION AND DATA ENTRY OF INFORMATION.—The head 

of each executive agency shall— 
H. R. 1107—43 

(1) ensure the accuracy of the information included in the 

record established and maintained by the agency under subsection (a); and 

(2) transmit in a timely manner such information to the 

General Services Administration for entry into the Federal 

Procurement Data System referred to in section 1122(a)(4) of 

this title, or any successor system. 

§ 1713. Procurement data 

(a) DEFINITIONS.—In this section: 

(1) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.—The term 

‘‘qualified HUBZone small business concern’’ has the meaning 

given that term in section 3(p) of the Small Business Act 

(15 U.S.C. 632(p)). 

(2) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY

SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.— 

The term ‘‘small business concern owned and controlled by 

socially and economically disadvantaged individuals’’ has the 

meaning given that term in section 8(d) of the Small Business 

Act (15 U.S.C. 637(d)). 

(3) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY

WOMEN.—The term ‘‘small business concern owned and controlled by women’’ has the meaning given that term in section 

8(d) of the Small Business Act (15 U.S.C. 637(d)) and section 

204 of the Women’s Business Ownership Act of 1988 (Public 

Law 100–533, 102 Stat. 2692). 

(b) REPORTING.—Each Federal agency shall report to the Office 

of Federal Procurement Policy the number of qualified HUBZone 

small business concerns, the number of small businesses owned 

and controlled by women, and the number of small business concerns owned and controlled by socially and economically disadvantaged individuals, by gender, that are first time recipients of contracts from the agency. The Office shall take appropriate action 

to ascertain, for each fiscal year, the number of those small 

businesses that have newly entered the Federal market. 

CHAPTER 19—SIMPLIFIED ACQUISITION PROCEDURES 

Sec. 

1901. Simplified acquisition procedures. 

1902. Procedures applicable to purchases below micro-purchase threshold. 

1903. Special emergency procurement authority. 

1904. Certain transactions for defense against attack. 

1905. List of laws inapplicable to contracts or subcontracts not greater than simplified acquisition threshold. 

1906. List of laws inapplicable to procurements of commercial items. 

1907. List of laws inapplicable to procurements of commercially available off-theshelf items. 

1908. Inflation adjustment of acquisition-related dollar thresholds. 

§ 1901. Simplified acquisition procedures 

(a) WHEN PROCEDURES ARE TO BE USED.—To promote efficiency 

and economy in contracting and to avoid unnecessary burdens for 

agencies and contractors, the Federal Acquisition Regulation shall 

provide for special simplified procedures for purchases of property 

and services for amounts— 

(1) not greater than the simplified acquisition threshold; and 

(2) greater than the simplified acquisition threshold but not 

greater than $5,000,000 for which the contracting officer reasonably expects, based on the nature of the property or services 
H. R. 1107—44 

sought and on market research, that offers will include only 

commercial items. 

(b) PROHIBITION ON DIVIDING PURCHASES.—A proposed purchase 

or contract for an amount above the simplified acquisition threshold 

may not be divided into several purchases or contracts for lesser 

amounts to use the simplified acquisition procedures required by 

subsection (a). 

(c) PROMOTION OF COMPETITION REQUIRED.—When using simplified acquisition procedures, the head of an executive agency 

shall promote competition to the maximum extent practicable. 

(d) CONSIDERATION OF OFFERS TIMELY RECEIVED.—The simplified 

acquisition procedures contained in the Federal Acquisition Regulation shall include a requirement that a contracting officer consider 

each responsive offer timely received from an eligible offeror. 

(e) SPECIAL RULES FOR COMMERCIAL ITEMS.—The Federal Acquisition Regulation shall provide that an executive agency using special 

simplified procedures to purchase commercial items— 

(1) shall publish a notice in accordance with section 1708 

of this title and, as provided in section 1708(c)(4) of this title, 

permit all responsible sources to submit a bid, proposal, or 

quotation (as appropriate) that the agency shall consider; 

(2) may not conduct the purchase on a sole source basis 

unless the need to do so is justified in writing and approved 

in accordance with section 2304(f) of title 10 or section 3304(e) 

of this title, as applicable; and 

(3) shall include in the contract file a written description 

of the procedures used in awarding the contract and the number 

of offers received. 

§ 1902. Procedures applicable to purchases below micro-purchase threshold 

(a) DEFINITION.—For purposes of this section, the micro-purchase 

threshold is $3,000. 

(b) COMPLIANCE WITH CERTAIN REQUIREMENTS AND NONAPPLICA- BILITY OF CERTAIN AUTHORITY.— (1) COMPLIANCE WITH CERTAIN REQUIREMENTS.—The head of 

each executive agency shall ensure that procuring activities 

of that agency, when awarding a contract with a price exceeding 

the micro-purchase threshold, comply with the requirements 

of section 8(a) of the Small Business Act (15 U.S.C. 637(a)), 

section 2323 of title 10, and section 7102 of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355, 15 U.S.C. 

644 note). 

(2) NONAPPLICABILITY OF CERTAIN AUTHORITY.—The authority 

under part 13.106(a)(1) of the Federal Acquisition Regulation 

(48 C.F.R. 13.106(a)(1)), as in effect on November 18, 1993, 

to make purchases without securing competitive quotations 

does not apply to a purchase with a price exceeding the micropurchase threshold. 

(c) NONAPPLICABILITY OF CERTAIN PROVISIONS.—An executive 

agency purchase with an anticipated value of the micro-purchase 

threshold or less is not subject to section 15(j) of the Small Business 

Act (15 U.S.C. 644(j)) and chapter 83 of this title. 

(d) PURCHASES WITHOUT COMPETITIVE QUOTATIONS.—A purchase 

not greater than $3,000 may be made without obtaining competitive 

quotations if an employee of an executive agency or a member 

of the armed forces, authorized to do so, determines that the price 

for the purchase is reasonable. 
H. R. 1107—45 

(e) EQUITABLE DISTRIBUTION.—Purchases not greater than $3,000 

shall be distributed equitably among qualified suppliers. 

(f) IMPLEMENTATION THROUGH FEDERAL ACQUISITION REGULA- TION.—This section shall be implemented through the Federal 

Acquisition Regulation. 

§ 1903. Special emergency procurement authority 

(a) APPLICABILITY.—The authorities provided in subsections (b) 

and (c) apply with respect to a procurement of property or services 

by or for an executive agency that the head of the executive agency 

determines are to be used— 

(1) in support of a contingency operation (as defined in section 

101(a) of title 10); or 

(2) to facilitate the defense against or recovery from nuclear, 

biological, chemical, or radiological attack against the United 

States. 

(b) INCREASED THRESHOLDS AND LIMITATION.—For a procurement 

to which this section applies under subsection (a)— 

(1) the amount specified in section 1902(a), (d), and (e) of 

this title shall be deemed to be— 

(A) $15,000 in the case of a contract to be awarded 

and performed, or purchase to be made, in the United 

States; and 

(B) $25,000 in the case of a contract to be awarded 

and performed, or purchase to be made, outside the United 

States; 

(2) the term ‘‘simplified acquisition threshold’’ means— (A) $250,000 in the case of a contract to be awarded 

and performed, or purchase to be made, in the United 

States; and 

(B) $1,000,000 in the case of a contract to be awarded 

and performed, or purchase to be made, outside the United 

States; and 

(3) the $5,000,000 limitation in sections 1901(a)(2) and 

3305(a)(2) of this title and section 2304(g)(1)(B) of title 10 

is deemed to be $10,000,000. 

(c) AUTHORITY TO TREAT PROPERTY OR SERVICE AS COMMERCIAL

ITEM.— 

(1) IN GENERAL.—The head of an executive agency carrying 

out a procurement of property or a service to which this section 

applies under subsection (a)(2) may treat the property or service 

as a commercial item for the purpose of carrying out the 

procurement. 

(2) CERTAIN CONTRACTS NOT EXEMPT FROM STANDARDS OR

REQUIREMENTS.—A contract in an amount of more than 

$15,000,000 that is awarded on a sole source basis for an 

item or service treated as a commercial item under paragraph 

(1) is not exempt from— 

(A) cost accounting standards prescribed under section 

1502 of this title; or 

(B) cost or pricing data requirements (commonly referred 

to as truth in negotiating) under chapter 35 of this title 

and section 2306a of title 10. 

§ 1904. Certain transactions for defense against attack 

(a) AUTHORITY.— 

(1) IN GENERAL.—The head of an executive agency that 

engages in basic research, applied research, advanced research, 
H. R. 1107—46 

and development projects that are necessary to the responsibilities of the executive agency in the field of research and development and have the potential to facilitate defense against or 

recovery from terrorism or nuclear, biological, chemical, or 

radiological attack may exercise the same authority (subject 

to the same restrictions and conditions) with respect to the 

research and projects as the Secretary of Defense may exercise 

under section 2371 of title 10, except for subsections (b) and 

(f) of section 2371. 

(2) PROTOTYPE PROJECTS.—The head of an executive agency, 

under the authority of paragraph (1), may carry out prototype 

projects that meet the requirements of paragraph (1) in accordance with the requirements and conditions provided for carrying 

out prototype projects under section 845 of the National Defense 

Authorization Act for Fiscal Year 1994 (Public Law 103–160, 

10 U.S.C. 2371 note), including that, to the maximum extent 

practicable, competitive procedures shall be used when entering 

into agreements to carry out projects under section 845(a) of 

that Act and that the period of authority to carry out projects 

under section 845(a) of that Act terminates as provided in 

section 845(i) of that Act. 

(3) APPLICATION OF REQUIREMENTS AND CONDITIONS.—In 

applying the requirements and conditions of section 845 of 

that Act under this subsection— 

(A) section 845(c) of that Act shall apply with respect 

to prototype projects carried out under paragraph (2); and 

(B) the Director of the Office of Management and Budget 

shall perform the functions of the Secretary of Defense 

under section 845(d) of that Act. 

(4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES.— (A) OFFICE OF MANAGEMENT AND BUDGET.—The head 

of an executive agency may exercise authority under this 

subsection for a project only if authorized by the Director 

of the Office of Management and Budget. 

(B) DEPARTMENT OF HOMELAND SECURITY.—Authority 

under this subsection does not apply to the Secretary of 

Homeland Security while section 831 of the Homeland 

Security Act of 2002 (6 U.S.C. 391) is in effect. 

(b) REGULATIONS.—The Director of the Office of Management 

and Budget shall prescribe regulations to carry out this section. 

No transaction may be conducted under the authority of this section 

before the regulations take effect. 

(c) ANNUAL REPORT.—The annual report of the head of an executive agency that is required under section 2371(h) of title 10, as 

applied to the head of the executive agency by subsection (a), 

shall be submitted to the Committee on Homeland Security and 

Governmental Affairs of the Senate and the Committee on Oversight 

and Government Reform of the House of Representatives. 

(d) TERMINATION OF AUTHORITY.—The authority to carry out 

transactions under subsection (a) terminates on September 30, 2008. 

§ 1905. List of laws inapplicable to contracts or subcontracts 

not greater than simplified acquisition threshold 

(a) DEFINITION.—In this section, the term ‘‘Council’’ has the 

meaning given that term in section 1301 of this title. 

(b) INCLUSION IN FEDERAL ACQUISITION REGULATION.— 

(1) IN GENERAL.—The Federal Acquisition Regulation shall 

include a list of provisions of law that are inapplicable to 
H. R. 1107—47 

contracts or subcontracts in amounts not greater than the 

simplified acquisition threshold. A provision of law properly 

included on the list pursuant to paragraph (2) does not apply 

to contracts or subcontracts in amounts not greater than the 

simplified acquisition threshold that are made by an executive 

agency. This section does not render a provision of law not 

included on the list inapplicable to contracts and subcontracts 

in amounts not greater than the simplified acquisition 

threshold. 

(2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of 

law described in subsection (c) that is enacted after October 

13, 1994, shall be included on the list of inapplicable provisions 

of laws required by paragraph (1) unless the Council makes 

a written determination that it would not be in the best interest 

of the Federal Government to exempt contracts or subcontracts 

in amounts not greater than the simplified acquisition threshold 

from the applicability of the provision. 

(c) COVERED LAW.—A provision of law referred to in subsection 

(b)(2) is a provision of law that the Council determines sets forth 

policies, procedures, requirements, or restrictions for the procurement of property or services by the Federal Government, except 

for a provision of law that— 

(1) provides for criminal or civil penalties; or 

(2) specifically refers to this section and provides that, notwithstanding this section, it shall be applicable to contracts 

or subcontracts in amounts not greater than the simplified 

acquisition threshold. 

(d) PETITION.—A person may petition the Administrator to take 

appropriate action when a provision of law described in subsection 

(c) is not included on the list of inapplicable provisions of law 

as required by subsection (b) and the Council has not made a 

written determination pursuant to subsection (b)(2). The Administrator shall revise the Federal Acquisition Regulation to include 

the provision on the list of inapplicable provisions of law unless 

the Council makes a determination pursuant to subsection (b)(2) 

within 60 days after the petition is received. 

§ 1906. List of laws inapplicable to procurements of commercial items 

(a) DEFINITION.—In this section, the term ‘‘Council’’ has the 

meaning given that term in section 1301 of this title. 

(b) CONTRACTS.— 

(1) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The 

Federal Acquisition Regulation shall include a list of provisions 

of law that are inapplicable to contracts for the procurement 

of commercial items. A provision of law properly included on 

the list pursuant to paragraph (2) does not apply to purchases 

of commercial items by an executive agency. This section does 

not render a provision of law not included on the list inapplicable to contracts for the procurement of commercial items. 

(2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of 

law described in subsection (d) that is enacted after October 

13, 1994, shall be included on the list of inapplicable provisions 

of law required by paragraph (1) unless the Council makes 

a written determination that it would not be in the best interest 

of the Federal Government to exempt contracts for the procurement of commercial items from the applicability of the provision. 
H. R. 1107—48 

(c) SUBCONTRACTS.— (1) DEFINITION.—In this subsection, the term ‘‘subcontract’’ 

includes a transfer of commercial items between divisions, 

subsidiaries, or affiliates of a contractor or subcontractor. 

(2) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The 

Federal Acquisition Regulation shall include a list of provisions 

of law that are inapplicable to subcontracts under a contract 

or subcontract for the procurement of commercial items. A 

provision of law properly included on the list pursuant to paragraph (3) does not apply to those subcontracts. This section 

does not render a provision of law not included on the list 

inapplicable to subcontracts under a contract for the procurement of commercial items. 

(3) PROVISIONS TO BE EXCLUDED FROM LIST.—A provision 

of law described in subsection (d) shall be included on the 

list of inapplicable provisions of law required by paragraph 

(2) unless the Council makes a written determination that 

it would not be in the best interest of the Federal Government 

to exempt subcontracts under a contract for the procurement 

of commercial items from the applicability of the provision. 

(4) WAIVER NOT AUTHORIZED.—This subsection does not 

authorize the waiver of the applicability of any provision of 

law with respect to any subcontract under a contract with 

a prime contractor reselling or distributing commercial items 

of another contractor without adding value. 

(d) COVERED LAW.—A provision of law referred to in subsections 

(b)(2) and (c) is a provision of law that the Council determines 

sets forth policies, procedures, requirements, or restrictions for the 

procurement of property or services by the Federal Government, 

except for a provision of law that— 

(1) provides for criminal or civil penalties; or 

(2) specifically refers to this section and provides that, notwithstanding this section, it shall be applicable to contracts 

for the procurement of commercial items. 

(e) PETITION.—A person may petition the Administrator to take 

appropriate action when a provision of law described in subsection 

(d) is not included on the list of inapplicable provisions of law 

as required by subsection (b) or (c) and the Council has not made 

a written determination pursuant to subsection (b)(2) or (c)(3). 

The Administrator shall revise the Federal Acquisition Regulation 

to include the provision on the list of inapplicable provisions of 

law unless the Council makes a determination pursuant to subsection (b)(2) or (c)(3) within 60 days after the petition is received. 

§ 1907. List of laws inapplicable to procurements of commercially available off-the-shelf items 

(a) INCLUSION IN FEDERAL ACQUISITION REGULATION.— 

(1) IN GENERAL.—The Federal Acquisition Regulation shall 

include a list of provisions of law that are inapplicable to 

contracts for the procurement of commercially available offthe-shelf items. A provision of law properly included on the 

list pursuant to paragraph (2) does not apply to contracts 

for the procurement of commercially available off-the-shelf 

items. This section does not render a provision of law not 

included on the list inapplicable to contracts for the procurement of commercially available off-the-shelf items. 

(2) LAWS TO BE INCLUDED.—A provision of law described 

in subsection (b) shall be included on the list of inapplicable 
H. R. 1107—49 

provisions of law required by paragraph (1) unless the Administrator makes a written determination that it would not be 

in the best interest of the Federal Government to exempt 

contracts for the procurement of commercially available offthe-shelf items from the applicability of the provision. 

(3) OTHER AUTHORITIES OR RESPONSIBILITIES NOT AFFECTED.— 

This section does not modify, supersede, impair, or restrict 

authorities or responsibilities under— 

(A) section 15 of the Small Business Act (15 U.S.C. 

644); or 

(B) bid protest procedures developed under the authority 

of— 

(i) subchapter V of chapter 35 of title 31; 

(ii) section 2305(e) and (f) of title 10; or 

(iii) sections 3706 and 3707 of this title. 

(b) COVERED LAW.—Except as provided in subsection (a)(3), a 

provision of law referred to in subsection (a)(1) is a provision of 

law that the Administrator determines imposes Federal Government-unique policies, procedures, requirements, or restrictions for 

the procurement of property or services on persons whom the Federal Government has awarded contracts for the procurement of 

commercially available off-the-shelf items, except for a provision 

of law that— 

(1) provides for criminal or civil penalties; or 

(2) specifically refers to this section and provides that, notwithstanding this section, it shall be applicable to contracts 

for the procurement of commercially available off-the-shelf 

items. 

§ 1908. Inflation adjustment of acquisition-related dollar 

thresholds 

(a) DEFINITION.—In this section, the term ‘‘Council’’ has the 

meaning given that term in section 1301 of this title. 

(b) APPLICATION.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

requirement for adjustment under subsection (c) applies to 

a dollar threshold that is specified in law as a factor in defining 

the scope of the applicability of a policy, procedure, requirement, 

or restriction provided in that law to the procurement of property or services by an executive agency, as the Council determines. 

(2) EXCEPTIONS.—Subsection (c) does not apply to dollar 

thresholds— 

(A) in chapter 67 of this title; 

(B) in sections 3141 to 3144, 3146, and 3147 of title 

40; or 

(C) the United States Trade Representative establishes 

pursuant to title III of the Trade Agreements Act of 1979 

(19 U.S.C. 2511 et seq.). 

(3) RELATIONSHIP TO OTHER INFLATION ADJUSTMENT AUTHORITIES.—This section supersedes the applicability of other provisions of law that provide for the adjustment of a dollar threshold 

that is adjustable under this section. 

(c) REQUIREMENT FOR PERIODIC ADJUSTMENT.— 

(1) BASELINE CONSTANT DOLLAR VALUE.—For purposes of 

paragraph (2), the baseline constant dollar value for a dollar 

threshold— 
H. R. 1107—50 

(A) in effect on October 1, 2000, that was first specified 

in a law that took effect on or before October 1, 2000, 

is the October 1, 2000, constant dollar value of that dollar 

threshold; and 

(B) specified in a law that takes effect after October 

1, 2000, is the constant dollar value of that threshold 

as of the effective date of that dollar threshold pursuant 

to that law. 

(2) ADJUSTMENT.—On October 1 of each year evenly divisible 

by 5, the Council shall adjust each acquisition-related dollar 

threshold provided by law, as described in subsection (b)(1), 

to the baseline constant dollar value of that threshold. 

(3) EXCLUSIVE MEANS OF ADJUSTMENT.—A dollar threshold 

adjustable under this section shall be adjusted only as provided 

in this section. 

(d) PUBLICATION.—The Council shall publish a notice of the 

adjusted dollar thresholds under this section in the Federal Register. The thresholds take effect on the date of publication. 

(e) CALCULATION.—An adjustment under this section shall be— 

(1) calculated on the basis of changes in the Consumer Price 

Index for all-urban consumers published monthly by the Secretary of Labor; and 

(2) rounded, in the case of a dollar threshold that on the 

day before the adjustment is— 

(A) less than $10,000, to the nearest $500; 

(B) not less than $10,000, but less than $100,000, to 

the nearest $5,000; 

(C) not less than $100,000, but less than $1,000,000, 

to the nearest $50,000; and 

(D) $1,000,000 or more, to the nearest $500,000. 

(f) PETITION FOR INCLUSION OF OMITTED THRESHOLD.— (1) PETITION SUBMITTED TO ADMINISTRATOR.—A person may 

request adjustment of a dollar threshold adjustable under this 

section that is not included in a notice of adjustment published 

under subsection (d) by submitting a petition for adjustment 

to the Administrator. 

(2) ACTIONS OF ADMINISTRATOR.—On receipt of a petition 

for adjustment of a dollar threshold under paragraph (1), the 

Administrator— 

(A) shall determine, in writing, whether the dollar 

threshold is required to be adjusted under this section; 

and 

(B) on determining that it should be adjusted, shall publish in the Federal Register a revised notice of the adjustment dollar thresholds under this section that includes 

the adjustment of the dollar threshold covered by the petition. 

(3) EFFECTIVE DATE OF ADJUSTMENT BY PETITION.—The 

adjustment of a dollar threshold pursuant to a petition under 

this subsection takes effect on the date the revised notice adding 

the adjustment under paragraph (2)(B) is published. 

CHAPTER 21—RESTRICTIONS ON OBTAINING AND 

DISCLOSING CERTAIN INFORMATION 

Sec. 

2101. Definitions. 

2102. Prohibitions on disclosing and obtaining procurement information. 
H. R. 1107—51 

2103. Actions required of procurement officers when contacted regarding non-Federal employment. 

2104. Prohibition on former official’s acceptance of compensation from contractor. 

2105. Penalties and administrative actions. 

2106. Reporting information believed to constitute evidence of offense. 

2107. Savings provisions. 

§ 2101. Definitions 

In this chapter: 

(1) CONTRACTING OFFICER.—The term ‘‘contracting officer’’ 

means an individual who, by appointment in accordance with 

applicable regulations, has the authority to enter into a Federal 

agency procurement contract on behalf of the Government and 

to make determinations and findings with respect to the contract. 

(2) CONTRACTOR BID OR PROPOSAL INFORMATION.—The term 

‘‘contractor bid or proposal information’’ means any of the following information submitted to a Federal agency as part of, 

or in connection with, a bid or proposal to enter into a Federal 

agency procurement contract, if that information previously 

has not been made available to the public or disclosed publicly: 

(A) Cost or pricing data (as defined in section 2306a(h) 

of title 10 with respect to procurements subject to that 

section and section 3501(a) of this title with respect to 

procurements subject to that section). 

(B) Indirect costs and direct labor rates. 

(C) Proprietary information about manufacturing processes, operations, or techniques marked by the contractor 

in accordance with applicable law or regulation. 

(D) Information marked by the contractor as ‘‘contractor 

bid or proposal information’’, in accordance with applicable 

law or regulation. 

(3) FEDERAL AGENCY.—The term ‘‘Federal agency’’ has the 

meaning given that term in section 102 of title 40. 

(4) FEDERAL AGENCY PROCUREMENT.—The term ‘‘Federal 

agency procurement’’ means the acquisition (by using competitive procedures and awarding a contract) of goods or services 

(including construction) from non-Federal sources by a Federal 

agency using appropriated funds. 

(5) OFFICIAL.—The term ‘‘official’’ means— 

(A) an officer, as defined in section 2104 of title 5; 

(B) an employee, as defined in section 2105 of title 5; 

and 

(C) a member of the uniformed services, as defined in 

section 2101(3) of title 5. 

(6) PROTEST.—The term ‘‘protest’’ means a written objection 

by an interested party to the award or proposed award of 

a Federal agency procurement contract, pursuant to subchapter 

V of chapter 35 of title 31. 

(7) SOURCE SELECTION INFORMATION.—The term ‘‘source selection information’’ means any of the following information prepared for use by a Federal agency to evaluate a bid or proposal 

to enter into a Federal agency procurement contract, if that 

information previously has not been made available to the 

public or disclosed publicly: 

(A) Bid prices submitted in response to a Federal agency 

solicitation for sealed bids, or lists of those bid prices before 

public bid opening. 
H. R. 1107—52 

(B) Proposed costs or prices submitted in response to 

a Federal agency solicitation, or lists of those proposed 

costs or prices. 

(C) Source selection plans. 

(D) Technical evaluation plans. 

(E) Technical evaluations of proposals. 

(F) Cost or price evaluations of proposals. 

(G) Competitive range determinations that identify proposals that have a reasonable chance of being selected 

for award of a contract. 

(H) Rankings of bids, proposals, or competitors. 

(I) Reports and evaluations of source selection panels, 

boards, or advisory councils. 

(J) Other information marked as ‘‘source selection 

information’’ based on a case-by-case determination by the 

head of the agency, the head’s designee, or the contracting 

officer that its disclosure would jeopardize the integrity 

or successful completion of the Federal agency procurement 

to which the information relates. 

§ 2102. Prohibitions on disclosing and obtaining procurement information 

(a) PROHIBITION ON DISCLOSING PROCUREMENT INFORMATION.— 

(1) IN GENERAL.—Except as provided by law, a person 

described in paragraph (3) shall not knowingly disclose contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract 

to which the information relates. 

(2) EMPLOYEE OF PRIVATE SECTOR ORGANIZATION.—In addition 

to the restriction in paragraph (1), an employee of a private 

sector organization assigned to an agency under chapter 37 

of title 5 shall not knowingly disclose contractor bid or proposal 

information or source selection information during the 3-year 

period after the employee’s assignment ends, except as provided 

by law. 

(3) APPLICATION.—Paragraph (1) applies to a person that— 

(A)(i) is a present or former official of the Federal Government; or 

(ii) is acting or has acted for or on behalf of, or who 

is advising or has advised the Federal Government with 

respect to, a Federal agency procurement; and 

(B) by virtue of that office, employment, or relationship 

has or had access to contractor bid or proposal information 

or source selection information. 

(b) PROHIBITION ON OBTAINING PROCUREMENT INFORMATION.— 

Except as provided by law, a person shall not knowingly obtain 

contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract 

to which the information relates. 

§ 2103. Actions required of procurement officers when contacted regarding non-Federal employment 

(a) ACTIONS REQUIRED.—An agency official participating personally and substantially in a Federal agency procurement for a contract in excess of the simplified acquisition threshold who contacts 

or is contacted by a person that is a bidder or offeror in that 

Federal agency procurement regarding possible non-Federal employment for that official shall— 
H. R. 1107—53 

(1) promptly report the contact in writing to the official’s 

supervisor and to the designated agency ethics official (or designee) of the agency in which the official is employed; and 

(2)(A) reject the possibility of non-Federal employment; or 

(B) disqualify himself or herself from further personal and 

substantial participation in that Federal agency procurement 

until the agency authorizes the official to resume participation 

in the procurement, in accordance with the requirements of 

section 208 of title 18 and applicable agency regulations on 

the grounds that— 

(i) the person is no longer a bidder or offeror in that 

Federal agency procurement; or 

(ii) all discussions with the bidder or offeror regarding 

possible non-Federal employment have terminated without 

an agreement or arrangement for employment. 

(b) RETENTION OF REPORTS.—The agency shall retain each report 

required by this section for not less than 2 years following the 

submission of the report. The reports shall be made available to 

the public on request, except that any part of a report that is 

exempt from the disclosure requirements of section 552 of title 

5 under subsection (b)(1) of that section may be withheld from 

disclosure to the public. 

(c) PERSONS SUBJECT TO PENALTIES.—The following are subject 

to the penalties and administrative actions set forth in section 

2105 of this title: 

(1) An official who knowingly fails to comply with the requirements of this section. 

(2) A bidder or offeror that engages in employment discussions with an official who is subject to the restrictions of this 

section, knowing that the official has not complied with paragraph (1) or (2) of subsection (a). 

§ 2104. Prohibition on former official’s acceptance of compensation from contractor 

(a) PROHIBITION.—A former official of a Federal agency may not 

accept compensation from a contractor as an employee, officer, 

director, or consultant of the contractor within one year after the 

official— 

(1) served, when the contractor was selected or awarded 

a contract, as the procuring contracting officer, the source selection authority, a member of the source selection evaluation 

board, or the chief of a financial or technical evaluation team 

in a procurement in which that contractor was selected for 

award of a contract in excess of $10,000,000; 

(2) served as the program manager, deputy program manager, 

or administrative contracting officer for a contract in excess 

of $10,000,000 awarded to that contractor; or 

(3) personally made for the Federal agency a decision to— 

(A) award a contract, subcontract, modification of a contract or subcontract, or a task order or delivery order 

in excess of $10,000,000 to that contractor; 

(B) establish overhead or other rates applicable to one 

or more contracts for that contractor that are valued in 

excess of $10,000,000; 

(C) approve issuance of one or more contract payments 

in excess of $10,000,000 to that contractor; or 

(D) pay or settle a claim in excess of $10,000,000 with 

that contractor. 
H. R. 1107—54 

(b) WHEN COMPENSATION MAY BE ACCEPTED.—Subsection (a) does 

not prohibit a former official of a Federal agency from accepting 

compensation from a division or affiliate of a contractor that does 

not produce the same or similar products or services as the entity 

of the contractor that is responsible for the contract referred to 

in paragraph (1), (2), or (3) of subsection (a). 

(c) IMPLEMENTING REGULATIONS.—Regulations implementing this 

section shall include procedures for an official or former official 

of a Federal agency to request advice from the appropriate designated agency ethics official regarding whether the official or 

former official is or would be precluded by this section from 

accepting compensation from a particular contractor. 

(d) PERSONS SUBJECT TO PENALTIES.—The following are subject 

to the penalties and administrative actions set forth in section 

2105 of this title: 

(1) A former official who knowingly accepts compensation 

in violation of this section. 

(2) A contractor that provides compensation to a former official knowing that the official accepts the compensation in violation of this section. 

§ 2105. Penalties and administrative actions 

(a) CRIMINAL PENALTIES.—A person that violates section 2102 

of this title to exchange information covered by section 2102 of 

this title for anything of value or to obtain or give a person a 

competitive advantage in the award of a Federal agency procurement contract shall be fined under title 18, imprisoned for not 

more than 5 years, or both. 

(b) CIVIL PENALTIES.—The Attorney General may bring a civil 

action in an appropriate district court of the United States against 

a person that engages in conduct that violates section 2102, 2103, 

or 2104 of this title. On proof of that conduct by a preponderance 

of the evidence— 

(1) an individual is liable to the Federal Government for 

a civil penalty of not more than $50,000 for each violation 

plus twice the amount of compensation that the individual 

received or offered for the prohibited conduct; and 

(2) an organization is liable to the Federal Government for 

a civil penalty of not more than $500,000 for each violation 

plus twice the amount of compensation that the organization 

received or offered for the prohibited conduct. 

(c) ADMINISTRATIVE ACTIONS.— 

(1) TYPES OF ACTION THAT FEDERAL AGENCY MAY TAKE.— 

A Federal agency that receives information that a contractor 

or a person has violated section 2102, 2103, or 2104 of this 

title shall consider taking one or more of the following actions, 

as appropriate: 

(A) Canceling the Federal agency procurement, if a contract has not yet been awarded. 

(B) Rescinding a contract with respect to which— 

(i) the contractor or someone acting for the contractor 

has been convicted for an offense punishable under 

subsection (a); or 

(ii) the head of the agency that awarded the contract 

has determined, based on a preponderance of the evidence, that the contractor or a person acting for the 

contractor has engaged in conduct constituting the 

offense. 
H. R. 1107—55 

(C) Initiating a suspension or debarment proceeding for 

the protection of the Federal Government in accordance 

with procedures in the Federal Acquisition Regulation. 

(D) Initiating an adverse personnel action, pursuant to 

the procedures in chapter 75 of title 5 or other applicable 

law or regulation. 

(2) AMOUNT GOVERNMENT ENTITLED TO RECOVER.—When a 

Federal agency rescinds a contract pursuant to paragraph 

(1)(B), the Federal Government is entitled to recover, in addition to any penalty prescribed by law, the amount expended 

under the contract. 

(3) PRESENT RESPONSIBILITY AFFECTED BY CONDUCT.—For 

purposes of a suspension or debarment proceeding initiated 

pursuant to paragraph (1)(C), engaging in conduct constituting 

an offense under section 2102, 2103, or 2104 of this title affects 

the present responsibility of a Federal Government contractor 

or subcontractor. 

§ 2106. Reporting information believed to constitute evidence of offense 

A person may not file a protest against the award or proposed 

award of a Federal agency procurement contract alleging a violation 

of section 2102, 2103, or 2104 of this title, and the Comptroller 

General may not consider that allegation in deciding a protest, 

unless the person, no later than 14 days after the person first 

discovered the possible violation, reported to the Federal agency 

responsible for the procurement the information that the person 

believed constitutes evidence of the offense. 

§ 2107. Savings provisions 

This chapter does not— 

(1) restrict the disclosure of information to, or its receipt 

by, a person or class of persons authorized, in accordance with 

applicable agency regulations or procedures, to receive that 

information; 

(2) restrict a contractor from disclosing its own bid or proposal 

information or the recipient from receiving that information; 

(3) restrict the disclosure or receipt of information relating 

to a Federal agency procurement after it has been canceled 

by the Federal agency before contract award unless the Federal 

agency plans to resume the procurement; 

(4) prohibit individual meetings between a Federal agency 

official and an offeror or potential offeror for, or a recipient 

of, a contract or subcontract under a Federal agency procurement, provided that unauthorized disclosure or receipt of contractor bid or proposal information or source selection information does not occur; 

(5) authorize the withholding of information from, nor restrict 

its receipt by, Congress, a committee or subcommittee of Congress, the Comptroller General, a Federal agency, or an 

inspector general of a Federal agency; 

(6) authorize the withholding of information from, nor restrict 

its receipt by, the Comptroller General in the course of a 

protest against the award or proposed award of a Federal 

agency procurement contract; or 

(7) limit the applicability of a requirement, sanction, contract 

penalty, or remedy established under another law or regulation. 
H. R. 1107—56 

CHAPTER 23—MISCELLANEOUS 

Sec. 

2301. Use of electronic commerce in Federal procurement. 

2302. Rights in technical data. 

2303. Ethics safeguards related to contractor conflicts of interest. 

2304. Conflict of interest standards for consultants. 

2305. Authority of Director of Office of Management and Budget not affected. 

2306. Openness of meetings. 

2307. Comptroller General’s access to information. 

2308. Modular contracting for information technology. 

2309. Protection of constitutional rights of contractors. 

2310. Performance-based contracts or task orders for services to be treated as contracts for the procurement of commercial items. 

2311. Enhanced transparency on interagency contracting and other transactions. 

2312. Contingency Contracting Corps. 

2313. Database for Federal agency contract and grant officers and suspension and 

debarment officials. 

§ 2301. Use of electronic commerce in Federal procurement 

(a) DEFINITION.—For the purposes of this section, the term ‘‘electronic commerce’’ means electronic techniques for accomplishing 

business transactions, including electronic mail or messaging, World 

Wide Web technology, electronic bulletin boards, purchase cards, 

electronic funds transfers, and electronic data interchange. 

(b) ESTABLISHMENT, MAINTENANCE, AND USE OF ELECTRONIC

COMMERCE PROCEDURES AND PROCESSES.—The head of each executive agency, after consulting with the Administrator, shall establish, 

maintain, and use, to the maximum extent that is practicable 

and cost-effective, procedures and processes that employ electronic 

commerce in the conduct and administration of the procurement 

system of the agency. 

(c) APPLICABLE STANDARDS.—In conducting electronic commerce, 

the head of an executive agency shall apply nationally and internationally recognized standards that broaden interoperability and 

ease the electronic interchange of information. 

(d) REQUIREMENTS OF SYSTEMS, TECHNOLOGIES, PROCEDURES, AND

PROCESSES.—The head of each executive agency shall ensure that 

systems, technologies, procedures, and processes established pursuant to this section— 

(1) are implemented with uniformity throughout the agency, 

to the extent practicable; 

(2) are implemented only after granting due consideration 

to the use or partial use, as appropriate, of existing electronic 

commerce and electronic data interchange systems and infrastructures such as the Federal acquisition computer network 

architecture known as FACNET; 

(3) facilitate access to Federal Government procurement 

opportunities, including opportunities for small business concerns, socially and economically disadvantaged small business 

concerns, and business concerns owned predominantly by 

women; and 

(4) ensure that any notice of agency requirements or agency 

solicitation for contract opportunities is provided in a form 

that allows convenient and universal user access through a 

single, Government-wide point of entry. 

(e) IMPLEMENTATION.—In carrying out the requirements of this 

section, the Administrator shall— 

(1) issue policies to promote, to the maximum extent practicable, uniform implementation of this section by executive 
H. R. 1107—57 

agencies, with due regard for differences in program requirements among agencies that may require departures from uniform procedures and processes in appropriate cases, when warranted because of the agency mission; 

(2) ensure that the head of each executive agency complies 

with the requirements of subsection (d); and 

(3) consult with the heads of appropriate Federal agencies 

with applicable technical and functional expertise, including 

the Office of Information and Regulatory Affairs, the National 

Institute of Standards and Technology, the General Services 

Administration, and the Department of Defense. 

§ 2302. Rights in technical data 

(a) WHERE DEFINED.—The legitimate proprietary interest of the 

Federal Government and of a contractor in technical or other data 

shall be defined in regulations prescribed as part of the Federal 

Acquisition Regulation. 

(b) GENERAL EXTENT OF REGULATIONS.— 

(1) OTHER RIGHTS NOT IMPAIRED.—Regulations prescribed 

under subsection (a) may not impair a right of the Federal 

Government or of a contractor with respect to a patent or 

copyright or another right in technical data otherwise established by law. 

(2) LIMITATION ON REQUIRING DATA BE PROVIDED TO THE

GOVERNMENT.—With respect to executive agencies subject to 

division C, regulations prescribed under subsection (a) shall 

provide that the Federal Government may not require a person 

that has developed a product (or process offered or to be offered 

for sale to the public) to provide to the Federal Government 

technical data relating to the design (or development or manufacture of the product or process) as a condition of procurement 

by the Federal Government of the product or process. This 

paragraph does not apply to data that may be necessary for 

the Federal Government to operate and maintain the product 

or use the process if the Federal Government obtains it as 

an element of performance under the contract. 

(c) TECHNICAL DATA DEVELOPED WITH FEDERAL FUNDS.— 

(1) USE BY GOVERNMENT AND AGENCIES.—Except as otherwise 

expressly provided by Federal statute, with respect to executive 

agencies subject to division C, regulations prescribed under 

subsection (a) shall provide that— 

(A) the Federal Government has unlimited rights in technical data developed exclusively with Federal funds if 

delivery of the data— 

(i) was required as an element of performance under 

a contract; and 

(ii) is needed to ensure the competitive acquisition 

of supplies or services that will be required in substantial quantities in the future; and 

(B) the Federal Government and each agency of the 

Federal Government has an unrestricted, royalty-free right 

to use, or to have its contractors use, for governmental 

purposes (excluding publication outside the Federal 

Government) technical data developed exclusively with 

Federal funds. 
H. R. 1107—58 

(2) REQUIREMENTS IN ADDITION TO OTHER RIGHTS OF THE

GOVERNMENT.—The requirements of paragraph (1) are in addition to and not in lieu of any other rights the Federal Government may have pursuant to law. 

(d) FACTORS TO BE CONSIDERED IN PRESCRIBING REGULATIONS.— The following factors shall be considered in prescribing regulations 

under subsection (a): 

(1) Whether the item or process to which the technical data 

pertains was developed— 

(A) exclusively with Federal funds; 

(B) exclusively at private expense; or 

(C) in part with Federal funds and in part at private 

expense. 

(2) The statement of congressional policy and objectives in 

section 200 of title 35, the statement of purposes in section 

2(b) of the Small Business Innovation Development Act of 1982 

(Public Law 97–219, 15 U.S.C. 638 note), and the declaration 

of policy in section 2 of the Small Business Act (15 U.S.C. 

631). 

(3) The interest of the Federal Government in increasing 

competition and lowering costs by developing and locating alternative sources of supply and manufacture. 

(e) PROVISIONS REQUIRED IN CONTRACTS.—Regulations prescribed 

under subsection (a) shall require that a contract for property 

or services entered into by an executive agency contain appropriate 

provisions relating to technical data, including provisions— 

(1) defining the respective rights of the Federal Government 

and the contractor or subcontractor (at any tier) regarding 

technical data to be delivered under the contract; 

(2) specifying technical data to be delivered under the contract 

and schedules for delivery; 

(3) establishing or referencing procedures for determining 

the acceptability of technical data to be delivered under the 

contract; 

(4) establishing separate contract line items for technical 

data to be delivered under the contract; 

(5) to the maximum practicable extent, identifying, in 

advance of delivery, technical data which is to be delivered 

with restrictions on the right of the Federal Government to 

use the data; 

(6) requiring the contractor to revise any technical data delivered under the contract to reflect engineering design changes 

made during the performance of the contract and affecting 

the form, fit, and function of the items specified in the contract 

and to deliver the revised technical data to an agency within 

a time specified in the contract; 

(7) requiring the contractor to furnish written assurance, 

when technical data is delivered or is made available, that 

the technical data is complete and accurate and satisfies the 

requirements of the contract concerning technical data; 

(8) establishing remedies to be available to the Federal 

Government when technical data required to be delivered or 

made available under the contract is found to be incomplete 

or inadequate or to not satisfy the requirements of the contract 

concerning technical data; and 

(9) authorizing the head of the agency to withhold payments 

under the contract (or exercise another remedy the head of 

the agency considers appropriate) during any period if the 
H. R. 1107—59 

contractor does not meet the requirements of the contract pertaining to the delivery of technical data. 

§ 2303. Ethics safeguards related to contractor conflicts of 

interest 

(a) DEFINITION.—In this section, the term ‘‘relevant acquisition 

function’’ means an acquisition function closely associated with 

inherently governmental functions. 

(b) POLICY ON PERSONAL CONFLICTS OF INTEREST BY CONTRACTOR

EMPLOYEES.— (1) DEVELOPMENT AND ISSUANCE OF POLICY.—The Administrator shall develop and issue a standard policy to prevent 

personal conflicts of interest by contractor employees performing relevant acquisition functions (including the development, award, and administration of Federal Government contracts) for or on behalf of a Federal agency or department. 

(2) ELEMENTS OF POLICY.—The policy shall— 

(A) define ‘‘personal conflict of interest’’ as it relates 

to contractor employees performing relevant acquisition 

functions; and 

(B) require each contractor whose employees perform 

relevant acquisition functions to— 

(i) identify and prevent personal conflicts of interest 

for the employees; 

(ii) prohibit contractor employees who have access 

to non-public government information obtained while 

performing relevant acquisition functions from using 

the information for personal gain; 

(iii) report any personal conflict-of-interest violation 

by an employee to the applicable contracting officer 

or contracting officer’s representative as soon as it 

is identified; 

(iv) maintain effective oversight to verify compliance 

with personal conflict-of-interest safeguards; 

(v) have procedures in place to screen for potential 

conflicts of interest for all employees performing relevant acquisition functions; and 

(vi) take appropriate disciplinary action in the case 

of employees who fail to comply with policies established pursuant to this section. 

(3) CONTRACT CLAUSE.— 

(A) CONTENTS.—The Administrator shall develop a personal conflicts-of-interest clause or a set of clauses for 

inclusion in solicitations and contracts (and task or delivery 

orders) for the performance of relevant acquisition functions 

that sets forth— 

(i) the personal conflicts-of-interest policy developed 

under this subsection; and 

(ii) the contractor’s responsibilities under the policy. 

(B) EFFECTIVE DATE.—Subparagraph (A) shall take effect 

300 days after October 14, 2008, and shall apply to— 

(i) contracts entered into on or after that effective 

date; and 

(ii) task or delivery orders awarded on or after that 

effective date, regardless of whether the contracts 

pursuant to which the task or delivery orders are 

awarded are entered before, on, or after October 14, 

2008. 
H. R. 1107—60 

(4) APPLICABILITY.— (A) CONTRACTS IN EXCESS OF THE SIMPLIFIED ACQUISITION

THRESHOLD.—This subsection shall apply to any contract 

for an amount in excess of the simplified acquisition 

threshold (as defined in section 134 of this title) if the 

contract is for the performance of relevant acquisition functions. 

(B) PARTIAL APPLICABILITY.—If only a portion of a contract described in subparagraph (A) is for the performance 

of relevant acquisition functions, then this subsection 

applies only to that portion of the contract. 

(c) BEST PRACTICES.—The Administrator shall, in consultation 

with the Director of the Office of Government Ethics, develop and 

maintain a repository of best practices relating to the prevention 

and mitigation of organizational and personal conflicts of interest 

in Federal contracting. 

§ 2304. Conflict of interest standards for consultants 

(a) CONTENT OF REGULATIONS.—The Administrator shall prescribe under this division Government-wide regulations that set 

forth— 

(1) conflict of interest standards for persons who provide 

consulting services described in subsection (b); and 

(2) procedures, including registration, certification, and 

enforcement requirements as may be appropriate, to promote 

compliance with the standards. 

(b) SERVICES SUBJECT TO REGULATIONS.—Regulations required 

by subsection (a) apply to— 

(1) advisory and assistance services provided to the Federal 

Government to the extent necessary to identify and evaluate 

the potential for conflicts of interest that could be prejudicial 

to the interests of the United States; 

(2) services related to support of the preparation or submission of bids and proposals for Federal contracts to the extent 

that inclusion of the services in the regulations is necessary 

to identify and evaluate the potential for conflicts of interest 

that could be prejudicial to the interests of the United States; 

and 

(3) other services related to Federal contracts as specified 

in the regulations prescribed under subsection (a) to the extent 

necessary to identify and evaluate the potential for conflicts 

of interest that could be prejudicial to the interests of the 

United States. 

(c) INTELLIGENCE ACTIVITIES EXEMPTION.— 

(1) ACTIVITIES THAT MAY BE EXEMPT.—Intelligence activities 

as defined in section 3.4(e) of Executive Order No. 12333 or 

a comparable definitional section in any successor order may 

be exempt from the regulations required by subsection (a). 

(2) REPORT.—The Director of National Intelligence shall 

report to the Intelligence and Appropriations Committees of 

Congress each January 1, delineating the activities and 

organizations that have been exempted under paragraph (1). 

(d) PRESIDENTIAL DETERMINATION.—Before the regulations 

required by subsection (a) are prescribed, the President shall determine if prescribing the regulations will have a significantly adverse 

effect on the accomplishment of the mission of the Defense Department or another Federal agency. If the President determines that 

the regulations will have such an adverse effect, the President 
H. R. 1107—61 

shall so report to the appropriate committees of the Senate and 

the House of Representatives, stating in full the reasons for the 

determination. If such a report is submitted, the requirement for 

the regulations shall be null and void. 

§ 2305. Authority of Director of Office of Management and 

Budget not affected 

This division does not limit the authorities and responsibilities 

of the Director of the Office of Management and Budget in effect 

on December 1, 1983. 

§ 2306. Openness of meetings 

The Administrator by regulation shall require that— 

(1) formal meetings of the Office of Federal Procurement 

Policy, as designated by the Administrator, for developing 

procurement policies and regulations be open to the public; 

and 

(2) public notice of each meeting be given not less than 

10 days prior to the meeting. 

§ 2307. Comptroller General’s access to information 

The Administrator and personnel in the Office of Federal Procurement Policy shall furnish information the Comptroller General may 

require to discharge the responsibilities of the Comptroller General. 

For this purpose, the Comptroller General or representatives of 

the Comptroller General shall have access to all books, documents, 

papers, and records of the Office of Federal Procurement Policy. 

§ 2308. Modular contracting for information technology 

(a) USE.—To the maximum extent practicable, the head of an 

executive agency should use modular contracting for an acquisition 

of a major system of information technology. 

(b) MODULAR CONTRACTING DESCRIBED.—Under modular contracting, an executive agency’s need for a system is satisfied in 

successive acquisitions of interoperable increments. Each increment 

complies with common or commercially accepted standards 

applicable to information technology so that the increments are 

compatible with other increments of information technology comprising the system. 

(c) PROVISIONS IN FEDERAL ACQUISITION REGULATION.—The Federal Acquisition Regulation shall provide that— 

(1) under the modular contracting process, an acquisition 

of a major system of information technology may be divided 

into several smaller acquisition increments that— 

(A) are easier to manage individually than would be 

one comprehensive acquisition; 

(B) address complex information technology objectives 

incrementally in order to enhance the likelihood of 

achieving workable solutions for attaining those objectives; 

(C) provide for delivery, implementation, and testing of 

workable systems or solutions in discrete increments, each 

of which comprises a system or solution that is not 

dependent on a subsequent increment in order to perform 

its principal functions; and 

(D) provide an opportunity for subsequent increments 

of the acquisition to take advantage of any evolution in 

technology or needs that occurs during conduct of the earlier increments; 
H. R. 1107—62 

(2) to the maximum extent practicable, a contract for an 

increment of an information technology acquisition should be 

awarded within 180 days after the solicitation is issued and, 

if the contract for that increment cannot be awarded within 

that period, the increment should be considered for cancellation; 

and 

(3) the information technology provided for in a contract 

for acquisition of information technology should be delivered 

within 18 months after the solicitation resulting in award of 

the contract was issued. 

§ 2309. Protection of constitutional rights of contractors 

(a) PROHIBITION ON REQUIRING WAIVER OF RIGHTS.—A contractor 

may not be required, as a condition for entering into a contract 

with the Federal Government, to waive a right under the Constitution for a purpose relating to the Chemical Weapons Convention 

Implementation Act of 1998 (22 U.S.C. 6701 et seq.) or the Chemical 

Weapons Convention (as defined in section 3 of that Act (22 U.S.C. 

6701)). 

(b) PERMISSIBLE CONTRACT CLAUSES.—Subsection (a) does not 

prohibit an executive agency from including in a contract a clause 

that requires the contractor to permit inspections to ensure that 

the contractor is performing the contract in accordance with the 

provisions of the contract. 

§ 2310. Performance-based contracts or task orders for services to be treated as contracts for the procurement of commercial items 

(a) CRITERIA.—A performance-based contract for the procurement 

of services entered into by an executive agency or a performancebased task order for services issued by an executive agency may 

be treated as a contract for the procurement of commercial items 

if— 

(1) the value of the contract or task order is estimated not 

to exceed $25,000,000; 

(2) the contract or task order sets forth specifically each 

task to be performed and, for each task— 

(A) defines the task in measurable, mission-related 

terms; 

(B) identifies the specific end products or output to be 

achieved; and 

(C) contains firm, fixed prices for specific tasks to be 

performed or outcomes to be achieved; and 

(3) the source of the services provides similar services to 

the general public under terms and conditions similar to those 

offered to the Federal Government. 

(b) REGULATIONS.—Regulations implementing this section shall 

require agencies to collect and maintain reliable data sufficient 

to identify the contracts or task orders treated as contracts for 

commercial items using the authority of this section. The data 

may be collected using the Federal Procurement Data System or 

other reporting mechanism. 

(c) REPORT.—Not later than 2 years after November 24, 2003, 

the Director of the Office of Management and Budget shall prepare 

and submit to the Committees on Homeland Security and Governmental Affairs and on Armed Services of the Senate and the 

Committees on Oversight and Government Reform and on Armed 

Services of the House of Representatives a report on the contracts 
H. R. 1107—63 

or task orders treated as contracts for commercial items using 

the authority of this section. The report shall include data on 

the use of the authority, both government-wide and for each department and agency. 

(d) EXPIRATION.—The authority under this section expires 10 

years after November 24, 2003. 

§ 2311. Enhanced transparency on interagency contracting 

and other transactions 

The Director of the Office of Management and Budget shall 

direct appropriate revisions to the Federal Procurement Data 

System or any successor system to facilitate the collection of complete, timely, and reliable data on interagency contracting actions 

and on transactions other than contracts, grants, and cooperative 

agreements issued pursuant to section 2371 of title 10 or similar 

authorities. The Director of the Office of Management and Budget 

shall ensure that data, consistent with what is collected for contract 

actions, is obtained on— 

(1) interagency contracting actions, including data at the 

task or delivery-order level; and 

(2) other transactions, including the initial award and any 

subsequent modifications awarded or orders issued (other than 

transactions that are reported through the Federal Assistance 

Awards Data System). 

§ 2312. Contingency Contracting Corps 

(a) DEFINITION.—In this section, the term ‘‘Corps’’ means the 

Contingency Contracting Corps established in subsection (b). 

(b) ESTABLISHMENT.—The Administrator of General Services, 

pursuant to policies established by the Office of Management and 

Budget, and in consultation with the Secretary of Defense and 

the Secretary of Homeland Security, shall establish a Governmentwide Contingency Contracting Corps. 

(c) FUNCTION.—The members of the Corps shall be available 

for deployment in responding to an emergency or major disaster, 

or a contingency operation, both within or outside the continental 

United States. 

(d) APPLICABILITY.—The authorities provided in this section apply 

with respect to any procurement of property or services by or 

for an executive agency that, as determined by the head of the 

executive agency, are to be used— 

(1) in support of a contingency operation as defined in section 

101(a)(13) of title 10; or 

(2) to respond to an emergency or major disaster as defined 

in section 102 of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5122). 

(e) MEMBERSHIP.—Membership in the Corps shall be voluntary 

and open to all Federal employees and members of the Armed 

Forces who are members of the Federal acquisition workforce. 

(f) EDUCATION AND TRAINING.—The Administrator of General 

Services may, in consultation with the Director of the Federal 

Acquisition Institute and the Chief Acquisition Officers Council, 

establish educational and training requirements for members of 

the Corps. Education and training carried out pursuant to the 

requirements shall be paid for from funds available in the acquisition workforce training fund established pursuant to section 1703(i) 

of this title. 
H. R. 1107—64 

(g) SALARY.—The salary for a member of the Corps shall be 

paid— 

(1) in the case of a member of the Armed Forces, out of 

funds available to the Armed Force concerned; and 

(2) in the case of a Federal employee, out of funds available 

to the employing agency. 

(h) AUTHORITY TO DEPLOY THE CORPS.— (1) DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET.— The Director of the Office of Management and Budget shall 

have the authority, upon request by an executive agency, to 

determine when members of the Corps shall be deployed, with 

the concurrence of the head of the agency or agencies employing 

the members to be deployed. 

(2) SECRETARY OF DEFENSE.—Nothing in this section shall 

preclude the Secretary of Defense or the Secretary’s designee 

from deploying members of the Armed Forces or civilian personnel of the Department of Defense in support of a contingency 

operation as defined in section 101(a)(13) of title 10. 

(i) ANNUAL REPORT.— (1) IN GENERAL.—The Administrator of General Services shall 

provide to the Committee on Homeland Security and Governmental Affairs and the Committee on Armed Services of the 

Senate and the Committee on Oversight and Government 

Reform and the Committee on Armed Services of the House 

of Representatives an annual report on the status of the Corps 

as of September 30 of each fiscal year. 

(2) CONTENT.—Each report under paragraph (1) shall include 

the number of members of the Corps, the total cost of operating 

the program, the number of deployments of members of the 

program, and the performance of members of the program 

in deployment. 

§ 2313. Database for Federal agency contract and grant officers and suspension and debarment officials 

(a) IN GENERAL.—Subject to the authority, direction, and control 

of the Director of the Office of Management and Budget, the 

Administrator of General Services shall establish and maintain 

a database of information regarding the integrity and performance 

of certain persons awarded Federal agency contracts and grants 

for use by Federal agency officials having authority over contracts 

and grants. 

(b) PERSONS COVERED.—The database shall cover the following: 

(1) Any person awarded a Federal agency contract or grant 

in excess of $500,000, if any information described in subsection 

(c) exists with respect to the person. 

(2) Any person awarded such other category or categories 

of Federal agency contract as the Federal Acquisition Regulation may provide, if any information described in subsection 

(c) exists with respect to the person. 

(c) INFORMATION INCLUDED.—With respect to a covered person, 

the database shall include information (in the form of a brief 

description) for the most recent 5-year period regarding the following: 

(1) Each civil or criminal proceeding, or any administrative 

proceeding, in connection with the award or performance of 

a contract or grant with the Federal Government with respect 

to the person during the period to the extent that the proceeding 

results in the following dispositions: 
H. R. 1107—65 

(A) In a criminal proceeding, a conviction. 

(B) In a civil proceeding, a finding of fault and liability 

that results in the payment of a monetary fine, penalty, 

reimbursement, restitution, or damages of $5,000 or more. 

(C) In an administrative proceeding, a finding of fault 

and liability that results in— 

(i) the payment of a monetary fine or penalty of 

$5,000 or more; or 

(ii) the payment of a reimbursement, restitution, or 

damages in excess of $100,000. 

(D) To the maximum extent practicable and consistent 

with applicable laws and regulations, in a criminal, civil, 

or administrative proceeding, a disposition of the matter 

by consent or compromise with an acknowledgment of fault 

by the person if the proceeding could have led to any 

of the outcomes specified in subparagraph (A), (B), or (C). 

(2) Each Federal contract and grant awarded to the person 

that was terminated in the period due to default. 

(3) Each Federal suspension and debarment of the person. 

(4) Each Federal administrative agreement entered into by 

the person and the Federal Government in the period to resolve 

a suspension or debarment proceeding. 

(5) Each final finding by a Federal official in the period 

that the person has been determined not to be a responsible 

source under paragraph (3) or (4) of section 113 of this title. 

(6) Other information that shall be provided for purposes 

of this section in the Federal Acquisition Regulation. 

(7) To the maximum extent practicable, information similar 

to the information covered by paragraphs (1) to (4) in connection 

with the award or performance of a contract or grant with 

a State government. 

(d) REQUIREMENTS RELATING TO DATABASE INFORMATION.— 

(1) DIRECT INPUT AND UPDATE.—The Administrator of General 

Services shall design and maintain the database in a manner 

that allows the appropriate Federal agency officials to directly 

input and update information in the database relating to actions 

that the officials have taken with regard to contractors or 

grant recipients. 

(2) TIMELINESS AND ACCURACY.—The Administrator of General Services shall develop policies to require— 

(A) the timely and accurate input of information into 

the database; 

(B) the timely notification of any covered person when 

information relevant to the person is entered into the database; and 

(C) opportunities for any covered person to submit comments pertaining to information about the person for inclusion in the database. 

(e) USE OF DATABASE.— 

(1) AVAILABILITY TO GOVERNMENT OFFICIALS.—The Administrator of General Services shall ensure that the information 

in the database is available to appropriate acquisition officials 

of Federal agencies, other government officials as the Administrator of General Services determines appropriate, and, on 

request, the Chairman and Ranking Member of the committees 

of Congress having jurisdiction. 

(2) REVIEW AND ASSESSMENT OF DATA.— 
H. R. 1107—66 

(A) IN GENERAL.—Before awarding a contract or grant 

in excess of the simplified acquisition threshold under section 134 of this title, the Federal agency official responsible 

for awarding the contract or grant shall review the database and consider all information in the database with 

regard to any offer or proposal, and in the case of a contract, 

shall consider other past performance information available 

with respect to the offeror in making any responsibility 

determination or past performance evaluation for the 

offeror. 

(B) DOCUMENTATION IN CONTRACT FILE.—The contract 

file for each contract of a Federal agency in excess of 

the simplified acquisition threshold shall document the 

manner in which the material in the database was considered in any responsibility determination or past performance evaluation. 

(f) DISCLOSURE IN APPLICATIONS.—The Federal Acquisition Regulation shall require that persons with Federal agency contracts 

and grants valued in total greater than $10,000,000 shall— 

(1) submit to the Administrator of General Services, in a 

manner determined appropriate by the Administrator of General Services, the information subject to inclusion in the database as listed in subsection (c) current as of the date of submittal of the information under this subsection; and 

(2) update the information submitted under paragraph (1) 

on a semiannual basis. 

(g) RULEMAKING.—The Administrator of General Services shall 

prescribe regulations that may be necessary to carry out this section. 

DIVISION C—PROCUREMENT

CHAPTER 31—GENERAL 

Sec. 

3101. Applicability. 

3102. Delegation and assignment of powers, functions, and responsibilities. 

3103. Acquisition programs. 

3104. Small business concerns. 

3105. New contracts and grants and merit-based selection procedures. 

3106. Erection, repair, or furnishing of public buildings and improvements not authorized, and certain contracts not permitted, by this division. 

§ 3101. Applicability 

(a) IN GENERAL.—An executive agency shall make purchases and 

contracts for property and services in accordance with this division 

and implementing regulations of the Administrator of General Services. 

(b) SIMPLIFIED ACQUISITION THRESHOLD AND PROCEDURES.— 

(1) SIMPLIFIED ACQUISITION THRESHOLD.— 

(A) DEFINITION.—For purposes of an acquisition by an 

executive agency, the simplified acquisition threshold is 

as specified in section 134 of this title. 

(B) INAPPLICABLE LAWS.—A law properly listed in the 

Federal Acquisition Regulation pursuant to section 1905 

of this title does not apply to or with respect to a contract 

or subcontract that is not greater than the simplified 

acquisition threshold. 

(2) SIMPLIFIED ACQUISITION PROCEDURES.—Simplified acquisition procedures contained in the Federal Acquisition Regulation 
H. R. 1107—67 

pursuant to section 1901 of this title apply in executive agencies 

as provided in section 1901. 

(c) EXCEPTIONS.— 

(1) IN GENERAL.—This division does not apply— 

(A) to the Department of Defense, the Coast Guard, 

and the National Aeronautics and Space Administration; 

or 

(B) except as provided in paragraph (2), when this division is made inapplicable pursuant to law. 

(2) APPLICABILITY OF CERTAIN LAWS RELATED TO ADVERTISING, 

OPENING OF BIDS, AND LENGTH OF CONTRACT.—Sections 6101, 

6103, and 6304 of this title do not apply to the procurement 

of property or services made by an executive agency pursuant 

to this division. However, when this division is made inapplicable by any law, sections 6101 and 6103 of this title apply 

in the absence of authority conferred by statute to procure 

without advertising or without regard to section 6101 of this 

title. A law that authorizes an executive agency (other than 

an executive agency exempted from this division by this subsection) to procure property or services without advertising 

or without regard to section 6101 of this title is deemed to 

authorize the procurement pursuant to the provisions of this 

division relating to procedures other than sealed-bid procedures. 

§ 3102. Delegation and assignment of powers, functions, and 

responsibilities 

(a) IN GENERAL.—Except to the extent expressly prohibited by 

another law, the head of an executive agency may delegate to 

another officer or official of that agency any power under this 

division. 

(b) PROCUREMENTS FOR OR WITH ANOTHER AGENCY.—Subject 

to subsection (a), to facilitate the procurement of property and 

services covered by this division by an executive agency for another 

executive agency, and to facilitate joint procurement by executive 

agencies— 

(1) the head of an executive agency may delegate functions 

and assign responsibilities relating to procurement to any 

officer or employee within the agency; 

(2) the heads of 2 or more executive agencies, consistent 

with section 1535 of title 31 and regulations prescribed under 

section 1074 of the Federal Acquisition Streamlining Act of 

1994 (Public Law 103–355, 31 U.S.C. 1535 note), may by agreement delegate procurement functions and assign procurement 

responsibilities from one executive agency to another of those 

executive agencies or to an officer or civilian employee of 

another of those executive agencies; and 

(3) the heads of 2 or more executive agencies may establish 

joint or combined offices to exercise procurement functions and 

responsibilities. 

§ 3103. Acquisition programs 

(a) CONGRESSIONAL POLICY.—It is the policy of Congress that 

the head of each executive agency should achieve, on average, 

90 percent of the cost, performance, and schedule goals established 

for major acquisition programs of the agency. 

(b) ESTABLISHMENT OF GOALS.— 
H. R. 1107—68 

(1) BY HEAD OF EXECUTIVE AGENCY.—The head of each executive agency shall approve or define the cost, performance, and 

schedule goals for major acquisition programs of the agency. 

(2) BY CHIEF FINANCIAL OFFICER.—The chief financial officer 

of an executive agency shall evaluate the cost goals proposed 

for each major acquisition program of the agency. 

(c) IDENTIFICATION OF NONCOMPLIANT PROGRAMS.—When it is 

necessary to implement the policy set out in subsection (a), the 

head of an executive agency shall— 

(1) determine whether there is a continuing need for programs that are significantly behind schedule, over budget, or 

not in compliance with performance or capability requirements; 

and 

(2) identify suitable actions to be taken, including termination, with respect to those programs. 

§ 3104. Small business concerns 

It is the policy of Congress that a fair proportion of the total 

purchases and contracts for property and services for the Federal 

Government shall be placed with small business concerns. 

§ 3105. New contracts and grants and merit-based selection 

procedures 

(a) CONGRESSIONAL POLICY.—It is the policy of Congress that— 

(1) an executive agency should not be required by legislation 

to award— 

(A) a new contract to a specific non-Federal Government 

entity; or 

(B) a new grant for research, development, test, or 

evaluation to a non-Federal Government entity; and 

(2) a program, project, or technology identified in legislation 

be procured or awarded through merit-based selection procedures. 

(b) NEW CONTRACT AND NEW GRANT DESCRIBED.—For purposes 

of this section— 

(1) a contract is a new contract unless the work provided 

for in the contract is a continuation of the work performed 

by the specified entity under a prior contract; and 

(2) a grant is a new grant unless the work provided for 

in the grant is a continuation of the work performed by the 

specified entity under a prior grant. 

(c) REQUIREMENTS FOR AWARDING NEW CONTRACT OR NEW

GRANT.—A provision of law may not be construed as requiring 

a new contract or a new grant to be awarded to a specified nonFederal Government entity unless the provision of law specifically— 

(1) refers to this section; 

(2) identifies the particular non-Federal Government entity 

involved; and 

(3) states that the award to that entity is required by the 

provision of law in contravention of the policy set forth in 

subsection (a). 

(d) EXCEPTION.—This section does not apply to a contract or 

grant that calls on the National Academy of Sciences to investigate, 

examine, or experiment on a subject of science or art of significance 

to an executive agency and to report on those matters to Congress 

or an agency of the Federal Government. 
H. R. 1107—69 

§ 3106. Erection, repair, or furnishing of public buildings 

and improvements not authorized, and certain 

contracts not permitted, by this division 

This division does not— 

(1) authorize the erection, repair, or furnishing of a public 

building or public improvement; or 

(2) permit a contract for the construction or repair of a 

building, road, sidewalk, sewer, main, or similar item using 

procedures other than sealed-bid procedures under section 

3301(b)(1)(A) of this title if the conditions set forth in section 

3301(b)(1)(A) of this title apply or the contract is to be performed outside the United States. 

CHAPTER 33—PLANNING AND SOLICITATION 

Sec. 

3301. Full and open competition. 

3302. Requirements for purchase of property and services pursuant to multiple 

award contracts. 

3303. Exclusion of particular source or restriction of solicitation to small business 

concerns. 

3304. Use of noncompetitive procedures. 

3305. Simplified procedures for small purchases. 

3306. Planning and solicitation requirements. 

3307. Preference for commercial items. 

3308. Planning for future competition in contracts for major systems. 

3309. Design-build selection procedures. 

3310. Quantities to order. 

3311. Qualification requirement. 

§ 3301. Full and open competition 

(a) IN GENERAL.—Except as provided in sections 3303, 3304(a), 

and 3305 of this title and except in the case of procurement procedures otherwise expressly authorized by statute, an executive 

agency in conducting a procurement for property or services shall— 

(1) obtain full and open competition through the use of 

competitive procedures in accordance with the requirements 

of this division and the Federal Acquisition Regulation; and 

(2) use the competitive procedure or combination of competitive procedures that is best suited under the circumstances 

of the procurement. 

(b) APPROPRIATE COMPETITIVE PROCEDURES.— 

(1) USE OF SEALED BIDS.—In determining the competitive 

procedures appropriate under the circumstance, an executive 

agency shall— 

(A) solicit sealed bids if— 

(i) time permits the solicitation, submission, and 

evaluation of sealed bids; 

(ii) the award will be made on the basis of price 

and other price-related factors; 

(iii) it is not necessary to conduct discussions with 

the responding sources about their bids; and 

(iv) there is a reasonable expectation of receiving 

more than one sealed bid; or 

(B) request competitive proposals if sealed bids are not 

appropriate under subparagraph (A). 

(2) SEALED BID NOT REQUIRED.—Paragraph (1)(A) does not 

require the use of sealed-bid procedures in cases in which 

section 204(e) of title 23 applies. 
H. R. 1107—70 

(c) EFFICIENT FULFILLMENT OF GOVERNMENT REQUIREMENTS.— 

The Federal Acquisition Regulation shall ensure that the requirement to obtain full and open competition is implemented in a 

manner that is consistent with the need to efficiently fulfill the 

Federal Government’s requirements. 

§ 3302. Requirements for purchase of property and services 

pursuant to multiple award contracts 

(a) DEFINITIONS.—In this section: 

(1) EXECUTIVE AGENCY.— The term ‘‘executive agency’’ has 

the same meaning given in section 133 of this title. 

(2) INDIVIDUAL PURCHASE.—The term ‘‘individual purchase’’ 

means a task order, delivery order, or other purchase. 

(3) MULTIPLE AWARD CONTRACT.—The term ‘‘multiple award 

contract’’ means— 

(A) a contract that is entered into by the Administrator 

of General Services under the multiple award schedule 

program referred to in section 2302(2)(C) of title 10; 

(B) a multiple award task order contract that is entered 

into under the authority of sections 2304a to 2304d of 

title 10, or chapter 41 of this title; and 

(C) any other indefinite delivery, indefinite quantity contract that is entered into by the head of an executive 

agency with 2 or more sources pursuant to the same solicitation. 

(4) SOLE SOURCE TASK OR DELIVERY ORDER.—The term ‘‘sole 

source task or delivery order’’ means any order that does not 

follow the competitive procedures in paragraph (2) or (3) of 

subsection (c). 

(b) REGULATIONS REQUIRED.—The Federal Acquisition Regulation 

shall require enhanced competition in the purchase of property 

and services by all executive agencies pursuant to multiple award 

contracts. 

(c) CONTENT OF REGULATIONS.— 

(1) IN GENERAL.—The regulations required by subsection (b) 

shall provide that each individual purchase of property or services in excess of the simplified acquisition threshold that is 

made under a multiple award contract shall be made on a 

competitive basis unless a contracting officer— 

(A) waives the requirement on the basis of a determination that— 

(i) one of the circumstances described in paragraphs 

(1) to (4) of section 4106(c) of this title or section 

2304c(b) of title 10 applies to the individual purchase; 

or 

(ii) a law expressly authorizes or requires that the 

purchase be made from a specified source; and 

(B) justifies the determination in writing. 

(2) COMPETITIVE BASIS PROCEDURES.—For purposes of this 

subsection, an individual purchase of property or services is 

made on a competitive basis only if it is made pursuant to 

procedures that— 

(A) require fair notice of the intent to make that purchase 

(including a description of the work to be performed and 

the basis on which the selection will be made) to be provided to all contractors offering the property or services 

under the multiple award contract; and 
H. R. 1107—71 

(B) afford all contractors responding to the notice a fair 

opportunity to make an offer and have that offer fairly 

considered by the official making the purchase. 

(3) EXCEPTION TO NOTICE REQUIREMENT.— 

(A) IN GENERAL.—Notwithstanding paragraph (2), and 

subject to subparagraph (B), notice may be provided to 

fewer than all contractors offering the property or services 

under a multiple award contract as described in subsection 

(a)(3)(A) if notice is provided to as many contractors as 

practicable. 

(B) LIMITATION ON EXCEPTION.—A purchase may not be 

made pursuant to a notice that is provided to fewer than 

all contractors under subparagraph (A) unless— 

(i) offers were received from at least 3 qualified 

contractors; or 

(ii) a contracting officer of the executive agency determines in writing that no additional qualified contractors were able to be identified despite reasonable efforts 

to do so. 

(d) PUBLIC NOTICE REQUIREMENTS RELATED TO SOLE SOURCE

TASK OR DELIVERY ORDERS.— 

(1) PUBLIC NOTICE REQUIRED.—The Federal Acquisition Regulation shall require the head of each executive agency to— 

(A) publish on FedBizOpps notice of all sole source task 

or delivery orders in excess of the simplified acquisition 

threshold that are placed against multiple award contracts 

not later than 14 days after the orders are placed, except 

in the event of extraordinary circumstances or classified 

orders; and 

(B) disclose the determination required by subsection 

(c)(1) related to sole source task or delivery orders in excess 

of the simplified acquisition threshold placed against multiple award contracts through the same mechanism and 

to the same extent as the disclosure of documents containing a justification and approval required by section 

2304(f)(1) of title 10 and section 3304(e)(1) of this title, 

except in the event of extraordinary circumstances or classified orders. 

(2) EXEMPTION.—This subsection does not require the public 

availability of information that is exempt from public disclosure 

under section 552(b) of title 5. 

(e) APPLICABILITY.—The regulations required by subsection (b) 

shall apply to all individual purchases of property or services that 

are made under multiple award contracts on or after the effective 

date of the regulations, without regard to whether the multiple 

award contracts were entered into before, on, or after the effective 

date. 

§ 3303. Exclusion of particular source or restriction of solicitation to small business concerns 

(a) EXCLUSION OF PARTICULAR SOURCE.— 

(1) CRITERIA FOR EXCLUSION.—An executive agency may provide for the procurement of property or services covered by 

section 3301 of this title using competitive procedures but 

excluding a particular source to establish or maintain an alternative source of supply for that property or service if the 

agency head determines that to do so would— 
H. R. 1107—72 

(A) increase or maintain competition and likely result 

in reduced overall cost for the procurement, or for an 

anticipated procurement, of the property or services; 

(B) be in the interest of national defense in having a 

facility (or a producer, manufacturer, or other supplier) 

available for furnishing the property or service in case 

of a national emergency or industrial mobilization; 

(C) be in the interest of national defense in establishing 

or maintaining an essential engineering, research, or 

development capability to be provided by an educational 

or other nonprofit institution or a Federally funded 

research and development center; 

(D) ensure the continuous availability of a reliable source 

of supply of the property or service; 

(E) satisfy projected needs for the property or service 

determined on the basis of a history of high demand for 

the property or service; or 

(F) satisfy a critical need for medical, safety, or emergency supplies. 

(2) DETERMINATION FOR CLASS DISALLOWED.—A determination under paragraph (1) may not be made for a class of 

purchases or contracts. 

(b) EXCLUSION OF OTHER THAN SMALL BUSINESS CONCERNS.— 

An executive agency may provide for the procurement of property 

or services covered by section 3301 of this title using competitive 

procedures, but excluding other than small business concerns in 

furtherance of sections 9 and 15 of the Small Business Act (15 

U.S.C. 638, 644). 

(c) NONAPPLICATION OF JUSTIFICATION AND APPROVAL REQUIRE- MENTS.—A contract awarded pursuant to the competitive procedures 

referred to in subsections (a) and (b) is not subject to the justification 

and approval required by section 3304(e)(1) of this title. 

§ 3304. Use of noncompetitive procedures 

(a) WHEN NONCOMPETITIVE PROCEDURES MAY BE USED.—An 

executive agency may use procedures other than competitive procedures only when— 

(1) the property or services needed by the executive agency 

are available from only one responsible source and no other 

type of property or services will satisfy the needs of the executive agency; 

(2) the executive agency’s need for the property or services 

is of such an unusual and compelling urgency that the Federal 

Government would be seriously injured unless the executive 

agency is permitted to limit the number of sources from which 

it solicits bids or proposals; 

(3) it is necessary to award the contract to a particular 

source— 

(A) to maintain a facility, producer, manufacturer, or 

other supplier available for furnishing property or services 

in case of a national emergency or to achieve industrial 

mobilization; 

(B) to establish or maintain an essential engineering, 

research, or development capability to be provided by an 

educational or other nonprofit institution or a Federally 

funded research and development center; 

(C) to procure the services of an expert for use, in any 

litigation or dispute (including any reasonably foreseeable 
H. R. 1107—73 

litigation or dispute) involving the Federal Government, 

in any trial, hearing, or proceeding before a court, administrative tribunal, or agency, whether or not the expert is 

expected to testify; or 

(D) to procure the services of an expert or neutral for 

use in any part of an alternative dispute resolution or 

negotiated rulemaking process, whether or not the expert 

is expected to testify; 

(4) the terms of an international agreement or treaty between 

the Federal Government and a foreign government or an international organization, or the written directions of a foreign 

government reimbursing the executive agency for the cost of 

the procurement of the property or services for that government, 

have the effect of requiring the use of procedures other than 

competitive procedures; 

(5) subject to section 3105 of this title, a statute expressly 

authorizes or requires that the procurement be made through 

another executive agency or from a specified source, or the 

agency’s need is for a brand-name commercial item for authorized resale; 

(6) the disclosure of the executive agency’s needs would compromise the national security unless the agency is permitted 

to limit the number of sources from which it solicits bids 

or proposals; or 

(7) the head of the executive agency (who may not delegate 

the authority under this paragraph)— 

(A) determines that it is necessary in the public interest 

to use procedures other than competitive procedures in 

the particular procurement concerned; and 

(B) notifies Congress in writing of that determination 

not less than 30 days before the award of the contract. 

(b) PROPERTY OR SERVICES DEEMED AVAILABLE FROM ONLY ONE

SOURCE.—For the purposes of subsection (a)(1), in the case of— 

(1) a contract for property or services to be awarded on 

the basis of acceptance of an unsolicited research proposal, 

the property or services are deemed to be available from only 

one source if the source has submitted an unsolicited research 

proposal that demonstrates a unique and innovative concept, 

the substance of which is not otherwise available to the Federal 

Government and does not resemble the substance of a pending 

competitive procurement; or 

(2) a follow-on contract for the continued development or 

production of a major system or highly specialized equipment, 

the property may be deemed to be available only from the 

original source and may be procured through procedures other 

than competitive procedures when it is likely that award to 

a source other than the original source would result in— 

(A) substantial duplication of cost to the Federal Government that is not expected to be recovered through competition; or 

(B) unacceptable delay in fulfilling the executive agency’s 

needs. 

(c) PROPERTY OR SERVICES NEEDED WITH UNUSUAL AND COMPEL- LING URGENCY.— 

(1) ALLOWABLE CONTRACT PERIOD.—The contract period of 

a contract described in paragraph (2) that is entered into by 

an executive agency pursuant to the authority provided under 

subsection (a)(2)— 
H. R. 1107—74 

(A) may not exceed the time necessary— 

(i) to meet the unusual and compelling requirements 

of the work to be performed under the contract; and 

(ii) for the executive agency to enter into another 

contract for the required goods or services through 

the use of competitive procedures; and 

(B) may not exceed one year unless the head of the 

executive agency entering into the contract determines that 

exceptional circumstances apply. 

(2) APPLICABILITY OF ALLOWABLE CONTRACT PERIOD.—This 

subsection applies to any contract in an amount greater than 

the simplified acquisition threshold. 

(d) OFFER REQUESTS TO POTENTIAL SOURCES.—An executive 

agency using procedures other than competitive procedures to procure property or services by reason of the application of paragraph 

(2) or (6) of subsection (a) shall request offers from as many potential 

sources as is practicable under the circumstances. 

(e) JUSTIFICATION FOR USE OF NONCOMPETITIVE PROCEDURES.— (1) PREREQUISITES FOR AWARDING CONTRACT.—Except as provided in paragraphs (3) and (4), an executive agency may 

not award a contract using procedures other than competitive 

procedures unless— 

(A) the contracting officer for the contract justifies the 

use of those procedures in writing and certifies the accuracy 

and completeness of the justification; 

(B) the justification is approved, in the case of a contract 

for an amount— 

(i) exceeding $500,000 but equal to or less than $10,000,000, by the advocate for competition for the 

procuring activity (without further delegation) or by 

an official referred to in clause (ii) or (iii); 

(ii) exceeding $10,000,000 but equal to or less than 

$50,000,000, by the head of the procuring activity or 

by a delegate who, if a member of the armed forces, 

is a general or flag officer or, if a civilian, is serving 

in a position in which the individual is entitled to 

receive the daily equivalent of the maximum annual 

rate of basic pay payable for level IV of the Executive 

Schedule (or in a comparable or higher position under 

another schedule); or 

(iii) exceeding $50,000,000, by the senior procurement executive of the agency designated pursuant to 

section 1702(c) of this title (without further delegation); 

and 

(C) any required notice has been published with respect 

to the contract pursuant to section 1708 of this title and 

the executive agency has considered all bids or proposals 

received in response to that notice. 

(2) ELEMENTS OF JUSTIFICATION.—The justification required 

by paragraph (1)(A) shall include— 

(A) a description of the agency’s needs; 

(B) an identification of the statutory exception from the 

requirement to use competitive procedures and a demonstration, based on the proposed contractor’s qualifications 

or the nature of the procurement, of the reasons for using 

that exception; 

(C) a determination that the anticipated cost will be 

fair and reasonable; 
H. R. 1107—75 

(D) a description of the market survey conducted or a 

statement of the reasons a market survey was not conducted; 

(E) a listing of any sources that expressed in writing 

an interest in the procurement; and 

(F) a statement of any actions the agency may take 

to remove or overcome a barrier to competition before a 

subsequent procurement for those needs. 

(3) JUSTIFICATION ALLOWED AFTER CONTRACT AWARDED.—In 

the case of a procurement permitted by subsection (a)(2), the 

justification and approval required by paragraph (1) may be 

made after the contract is awarded. 

(4) JUSTIFICATION NOT REQUIRED.—The justification and 

approval required by paragraph (1) are not required if— 

(A) a statute expressly requires that the procurement 

be made from a specified source; 

(B) the agency’s need is for a brand-name commercial 

item for authorized resale; 

(C) the procurement is permitted by subsection (a)(7); 

or 

(D) the procurement is conducted under chapter 85 of 

this title or section 8(a) of the Small Business Act (15 

U.S.C. 637(a)). 

(5) RESTRICTIONS ON EXECUTIVE AGENCIES.— (A) CONTRACTS AND PROCUREMENT OF PROPERTY OR SERV- ICES.—In no case may an executive agency— 

(i) enter into a contract for property or services using 

procedures other than competitive procedures on the 

basis of the lack of advance planning or concerns 

related to the amount available to the agency for 

procurement functions; or 

(ii) procure property or services from another executive agency unless the other executive agency complies 

fully with the requirements of this division in its 

procurement of the property or services. 

(B) ADDITIONAL RESTRICTION.—The restriction set out in 

subparagraph (A)(ii) is in addition to any other restriction 

provided by law. 

(f) PUBLIC AVAILABILITY OF JUSTIFICATION AND APPROVAL

REQUIRED FOR USING NONCOMPETITIVE PROCEDURES.— 

(1) TIME REQUIREMENT.— 

(A) WITHIN 14 DAYS AFTER CONTRACT AWARD.—Except 

as provided in subparagraph (B), in the case of a procurement permitted by subsection (a), the head of an executive 

agency shall make publicly available, within 14 days after 

the award of the contract, the documents containing the 

justification and approval required by subsection (e)(1) with 

respect to the procurement. 

(B) WITHIN 30 DAYS AFTER CONTRACT AWARD.—In the 

case of a procurement permitted by subsection (a)(2), 

subparagraph (A) shall be applied by substituting ‘‘30 days’’ 

for ‘‘14 days’’. 

(2) AVAILABILITY ON WEBSITES.—The documents referred to 

in subparagraph (A) of paragraph (1) shall be made available 

on the website of the agency and through a Government-wide 

website selected by the Administrator. 

(3) EXCEPTION TO AVAILABILITY AND APPROVAL REQUIREMENT.—This subsection does not require the public availability 
H. R. 1107—76 

of information that is exempt from public disclosure under 

section 552(b) of title 5. 

§ 3305. Simplified procedures for small purchases 

(a) AUTHORIZATION.—To promote efficiency and economy in contracting and to avoid unnecessary burdens for agencies and contractors, the Federal Acquisition Regulation shall provide for special 

simplified procedures for purchases of property and services for 

amounts— 

(1) not greater than the simplified acquisition threshold; and 

(2) greater than the simplified acquisition threshold but not greater than $5,000,000 for which the contracting officer reasonably expects, based on the nature of the property or services 

sought and on market research, that offers will include only 

commercial items. 

(b) LEASEHOLD INTERESTS IN REAL PROPERTY.—The Administrator 

of General Services shall prescribe regulations that provide special 

simplified procedures for acquisitions of leasehold interests in real 

property at rental rates that do not exceed the simplified acquisition 

threshold. The rental rate under a multiyear lease does not exceed 

the simplified acquisition threshold if the average annual amount 

of the rent payable for the period of the lease does not exceed 

the simplified acquisition threshold. 

(c) PROHIBITION ON DIVIDING CONTRACTS.—A proposed purchase 

or contract for an amount above the simplified acquisition threshold 

may not be divided into several purchases or contracts for lesser 

amounts to use the simplified procedures required by subsection 

(a). 

(d) PROMOTION OF COMPETITION.—In using the simplified procedures, an executive agency shall promote competition to the maximum extent practicable. 

(e) COMPLIANCE WITH SPECIAL REQUIREMENTS OF FEDERAL

ACQUISITION REGULATION.—An executive agency shall comply with 

the Federal Acquisition Regulation provisions referred to in section 

1901(e) of this title. 

§ 3306. Planning and solicitation requirements 

(a) PLANNING AND SPECIFICATIONS.— (1) PREPARING FOR PROCUREMENT.—In preparing for the 

procurement of property or services, an executive agency shall— 

(A) specify its needs and solicit bids or proposals in 

a manner designed to achieve full and open competition 

for the procurement; 

(B) use advance procurement planning and market 

research; and 

(C) develop specifications in the manner necessary to 

obtain full and open competition with due regard to the 

nature of the property or services to be acquired. 

(2) REQUIREMENTS OF SPECIFICATIONS.—Each solicitation 

under this division shall include specifications that— 

(A) consistent with this division, permit full and open 

competition; and 

(B) include restrictive provisions or conditions only to 

the extent necessary to satisfy the needs of the executive 

agency or as authorized by law. 

(3) TYPES OF SPECIFICATIONS.—For the purposes of paragraphs (1) and (2), the type of specification included in a solicitation shall depend on the nature of the needs of the executive 
H. R. 1107—77 

agency and the market available to satisfy those needs. Subject 

to those needs, specifications may be stated in terms of— 

(A) function, so that a variety of products or services 

may qualify; 

(B) performance, including specifications of the range 

of acceptable characteristics or of the minimum acceptable 

standards; or 

(C) design requirements. 

(b) CONTENTS OF SOLICITATION.—In addition to the specifications 

described in subsection (a), each solicitation for sealed bids or 

competitive proposals (other than for a procurement for commercial 

items using special simplified procedures or a purchase for an 

amount not greater than the simplified acquisition threshold) shall 

at a minimum include— 

(1) a statement of— 

(A) all significant factors and significant subfactors that 

the executive agency reasonably expects to consider in 

evaluating sealed bids (including price) or competitive proposals (including cost or price, cost-related or price-related 

factors and subfactors, and noncost-related or nonpricerelated factors and subfactors); and 

(B) the relative importance assigned to each of those 

factors and subfactors; and 

(2)(A) in the case of sealed bids— 

(i) a statement that sealed bids will be evaluated without 

discussions with the bidders; and 

(ii) the time and place for the opening of the sealed 

bids; or 

(B) in the case of competitive proposals— 

(i) either a statement that the proposals are intended 

to be evaluated with, and the award made after, discussions 

with the offerors, or a statement that the proposals are 

intended to be evaluated, and the award made, without 

discussions with the offerors (other than discussions conducted for the purpose of minor clarification) unless discussions are determined to be necessary; and 

(ii) the time and place for submission of proposals. 

(c) EVALUATION FACTORS.— 

(1) IN GENERAL.—In prescribing the evaluation factors to 

be included in each solicitation for competitive proposals, an 

executive agency shall— 

(A) establish clearly the relative importance assigned 

to the evaluation factors and subfactors, including the 

quality of the product or services to be provided (including 

technical capability, management capability, prior experience, and past performance of the offeror); 

(B) include cost or price to the Federal Government as 

an evaluation factor that must be considered in the evaluation of proposals; and 

(C) disclose to offerors whether all evaluation factors 

other than cost or price, when combined, are— 

(i) significantly more important than cost or price; 

(ii) approximately equal in importance to cost or 

price; or 

(iii) significantly less important than cost or price. 

(2) RESTRICTION ON IMPLEMENTING REGULATIONS.—Regulations implementing paragraph (1)(C) may not define the terms 
H. R. 1107—78 

‘‘significantly more important’’ and ‘‘significantly less important’’ as specific numeric weights that would be applied uniformly to all solicitations or a class of solicitations. 

(d) ADDITIONAL INFORMATION IN SOLICITATION.—This section does 

not prohibit an executive agency from— 

(1) providing additional information in a solicitation, 

including numeric weights for all evaluation factors and subfactors on a case-by-case basis; or 

(2) stating in a solicitation that award will be made to the 

offeror that meets the solicitation’s mandatory requirements 

at the lowest cost or price. 

(e) LIMITATION ON EVALUATION OF PURCHASE OPTIONS.—An 

executive agency, in issuing a solicitation for a contract to be 

awarded using sealed bid procedures, may not include in the solicitation a clause providing for the evaluation of prices for options 

to purchase additional property or services under the contract 

unless the executive agency has determined that there is a reasonable likelihood that the options will be exercised. 

(f) AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRACTORS.— 

(1) DEFINITION.—In this subsection, the term ‘‘executive 

agency’’ has the meaning given that term in section 133 of 

this title. 

(2) FEDERAL ACQUISITION REGULATION TO ALLOW TELECOMMUTING.—The Federal Acquisition Regulation issued in accordance with sections 1121(b) and 1303(a)(1) of this title shall 

permit telecommuting by employees of Federal Government 

contractors in the performance of contracts entered into with 

executive agencies. 

(3) SCOPE OF ALLOWANCE.—The Federal Acquisition Regulation at a minimum shall provide that a solicitation for the 

acquisition of property or services may not set forth any requirement or evaluation criteria that would— 

(A) render an offeror ineligible to enter into a contract 

on the basis of the inclusion of a plan of the offeror to 

allow the offeror’s employees to telecommute, unless the 

contracting officer concerned first determines that the 

requirements of the agency, including security requirements, cannot be met if telecommuting is allowed and 

documents in writing the basis for the determination; or 

(B) reduce the scoring of an offer on the basis of the 

inclusion in the offer of a plan of the offeror to allow 

the offeror’s employees to telecommute, unless the contracting officer concerned first determines that the requirements of the agency, including security requirements, 

would be adversely impacted if telecommuting is allowed 

and documents in writing the basis for the determination. 

§ 3307. Preference for commercial items 

(a) RELATIONSHIP OF PROVISIONS OF LAW TO PROCUREMENT OF

COMMERCIAL ITEMS.— 

(1) THIS DIVISION.—Unless otherwise specifically provided, 

all other provisions in this division also apply to the procurement of commercial items. 

(2) LAWS LISTED IN FEDERAL ACQUISITION REGULATION.—A 

contract for the procurement of a commercial item entered 

into by the head of an executive agency is not subject to 
H. R. 1107—79 

a law properly listed in the Federal Acquisition Regulation 

pursuant to section 1906 of this title. 

(b) PREFERENCE.—The head of each executive agency shall ensure 

that, to the maximum extent practicable— 

(1) requirements of the executive agency with respect to 

a procurement of supplies or services are stated in terms of— 

(A) functions to be performed; 

(B) performance required; or 

(C) essential physical characteristics; 

(2) those requirements are defined so that commercial items 

or, to the extent that commercial items suitable to meet the 

executive agency’s needs are not available, nondevelopmental 

items other than commercial items may be procured to fulfill 

those requirements; and 

(3) offerors of commercial items and nondevelopmental items 

other than commercial items are provided an opportunity to 

compete in any procurement to fill those requirements. 

(c) IMPLEMENTATION.—The head of each executive agency shall 

ensure that procurement officials in that executive agency, to the 

maximum extent practicable— 

(1) acquire commercial items or nondevelopmental items 

other than commercial items to meet the needs of the executive 

agency; 

(2) require that prime contractors and subcontractors at all 

levels under contracts of the executive agency incorporate 

commercial items or nondevelopmental items other than 

commercial items as components of items supplied to the executive agency; 

(3) modify requirements in appropriate cases to ensure that 

the requirements can be met by commercial items or, to the 

extent that commercial items suitable to meet the executive 

agency’s needs are not available, nondevelopmental items other 

than commercial items; 

(4) state specifications in terms that enable and encourage 

bidders and offerors to supply commercial items or, to the 

extent that commercial items suitable to meet the executive 

agency’s needs are not available, nondevelopmental items other 

than commercial items in response to the executive agency 

solicitations; 

(5) revise the executive agency’s procurement policies, practices, and procedures not required by law to reduce any impediments in those policies, practices, and procedures to the acquisition of commercial items; and 

(6) require training of appropriate personnel in the acquisition of commercial items. 

(d) MARKET RESEARCH.— 

(1) WHEN TO BE USED.—The head of an executive agency 

shall conduct market research appropriate to the circumstances— 

(A) before developing new specifications for a procurement by that executive agency; and 

(B) before soliciting bids or proposals for a contract in 

excess of the simplified acquisition threshold. 

(2) USE OF RESULTS.—The head of an executive agency shall 

use the results of market research to determine whether 

commercial items or, to the extent that commercial items suitable to meet the executive agency’s needs are not available, 
H. R. 1107—80 

nondevelopmental items other than commercial items are available that— 

(A) meet the executive agency’s requirements; 

(B) could be modified to meet the executive agency’s 

requirements; or 

(C) could meet the executive agency’s requirements if 

those requirements were modified to a reasonable extent. 

(3) ONLY MINIMUM INFORMATION REQUIRED TO BE SUBMITTED.—In conducting market research, the head of an executive agency should not require potential sources to submit 

more than the minimum information that is necessary to make 

the determinations required in paragraph (2). 

(e) REGULATIONS.— 

(1) IN GENERAL.—The Federal Acquisition Regulation shall 

provide regulations to implement this section, sections 102, 

103, 105, and 110 of this title, and chapter 140 of title 10. 

(2) CONTRACT CLAUSES.— 

(A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’ includes a transfer of commercial items between 

divisions, subsidiaries, or affiliates of a contractor or subcontractor. 

(B) LIST OF CLAUSES TO BE INCLUDED.—The regulations 

prescribed under paragraph (1) shall contain a list of contract clauses to be included in contracts for the acquisition 

of commercial end items. To the maximum extent practicable, the list shall include only those contract clauses 

that are— 

(i) required to implement provisions of law or executive orders applicable to acquisitions of commercial 

items or commercial components; or 

(ii) determined to be consistent with standard 

commercial practice. 

(C) REQUIREMENTS OF PRIME CONTRACTOR.—The regulations shall provide that the Federal Government shall not 

require a prime contractor to apply to any of its divisions, 

subsidiaries, affiliates, subcontractors, or suppliers that are 

furnishing commercial items any contract clause except 

those that are— 

(i) required to implement provisions of law or executive orders applicable to subcontractors furnishing 

commercial items or commercial components; or 

(ii) determined to be consistent with standard 

commercial practice. 

(D) CLAUSES THAT MAY BE USED IN A CONTRACT.—To 

the maximum extent practicable, only the contract clauses 

listed pursuant to subparagraph (B) may be used in a 

contract, and only the contract clauses referred to in 

subparagraph (C) may be required to be used in a subcontract, for the acquisition of commercial items or commercial components by or for an executive agency. 

(E) WAIVER OF CONTRACT CLAUSES.—The Federal Acquisition Regulation shall provide standards and procedures 

for waiving the use of contract clauses required pursuant 

to subparagraph (B), other than those required by law, 

including standards for determining the cases in which 

a waiver is appropriate. 

(3) MARKET ACCEPTANCE.— 
H. R. 1107—81 

(A) REQUIREMENT OF OFFERORS.—The Federal Acquisition Regulation shall provide that under appropriate conditions the head of an executive agency may require offerors 

to demonstrate that the items offered— 

(i) have achieved commercial market acceptance or 

been satisfactorily supplied to an executive agency 

under current or recent contracts for the same or 

similar requirements; and 

(ii) otherwise meet the item description, specifications, or other criteria prescribed in the public notice 

and solicitation relating to the contract. 

(B) REGULATION TO PROVIDE GUIDANCE ON CRITERIA.— 

The Federal Acquisition Regulation shall provide guidance 

to ensure that the criteria for determining commercial 

market acceptance include the consideration of— 

(i) the minimum needs of the executive agency concerned; and 

(ii) the entire relevant commercial market, including 

small businesses. 

(4) PROVISIONS RELATING TO TYPES OF CONTRACTS.— 

(A) TYPES OF CONTRACTS THAT MAY BE USED.—The Federal Acquisition Regulation shall include, for acquisitions 

of commercial items— 

(i) a requirement that firm, fixed price contracts 

or fixed price with economic price adjustment contracts 

be used to the maximum extent practicable; 

(ii) a prohibition on use of cost type contracts; and 

(iii) subject to subparagraph (B), authority for use 

of a time-and-materials or labor-hour contract for the 

procurement of commercial services that are commonly 

sold to the general public through those contracts and 

are purchased by the procuring agency on a competitive 

basis. 

(B) WHEN TIME-AND-MATERIALS OR LABOR-HOUR CONTRACT MAY BE USED.—A time-and-materials or labor-hour 

contract may be used pursuant to the authority referred 

to in subparagraph (A)(iii)— 

(i) only for a procurement of commercial services 

in a category of commercial services described in 

subparagraph (C); and 

(ii) only if the contracting officer for the procurement— 

(I) executes a determination and findings that 

no other contract type is suitable; 

(II) includes in the contract a ceiling price that 

the contractor exceeds at its own risk; and 

(III) authorizes a subsequent change in the 

ceiling price only on a determination, documented 

in the contract file, that it is in the best interest 

of the procuring agency to change the ceiling price. 

(C) CATEGORIES OF COMMERCIAL SERVICES.—The categories of commercial services referred to in subparagraph 

(B) are as follows: 

(i) Commercial services procured for support of a 

commercial item, as described in section 103(5) of this 

title. 
H. R. 1107—82 

(ii) Any other category of commercial services that 

the Administrator for Federal Procurement Policy designates in the Federal Acquisition Regulation for the 

purposes of this subparagraph on the basis that— 

(I) the commercial services in the category are 

of a type of commercial services that are commonly 

sold to the general public through use of timeand-materials or labor-hour contracts; and 

(II) it would be in the best interests of the Federal Government to authorize use of time-andmaterials or labor-hour contracts for purchases of 

the commercial services in the category. 

(5) CONTRACT QUALITY REQUIREMENTS.—Regulations prescribed under paragraph (1) shall include provisions that— 

(A) allow, to the maximum extent practicable, a contractor under a commercial items acquisition to use the 

existing quality assurance system of the contractor as a 

substitute for compliance with an otherwise applicable 

requirement for the Federal Government to inspect or test 

the commercial items before the contractor’s tender of those 

items for acceptance by the Federal Government; 

(B) require that, to the maximum extent practicable, 

the executive agency take advantage of warranties 

(including extended warranties) offered by offerors of 

commercial items and use those warranties for the repair 

and replacement of commercial items; and 

(C) set forth guidance regarding the use of past performance of commercial items and sources as a factor in contract 

award decisions. 

§ 3308. Planning for future competition in contracts for 

major systems 

(a) DEVELOPMENT CONTRACT.— 

(1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In 

preparing a solicitation for the award of a development contract 

for a major system, the head of an agency shall consider 

requiring in the solicitation that an offeror include in its offer 

proposals described in paragraph (2). In determining whether 

to require the proposals, the head of the agency shall consider 

the purposes for which the system is being procured and the 

technology necessary to meet the system’s required capabilities. 

If the proposals are required, the head of the agency shall 

consider them in evaluating the offeror’s price. 

(2) CONTENTS OF PROPOSALS.—The proposals that the head 

of an agency is to consider requiring in a solicitation for the 

award of a development contract are the following: 

(A) Proposals to incorporate in the design of the major 

system items that are currently available within the supply 

system of the Federal agency responsible for the major 

system, available elsewhere in the national supply system, 

or commercially available from more than one source. 

(B) With respect to items that are likely to be required 

in substantial quantities during the system’s service life, 

proposals to incorporate in the design of the major system 

items that the Federal Government will be able to acquire 

competitively in the future. 

(b) PRODUCTION CONTRACT.— 
H. R. 1107—83 

(1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In 

preparing a solicitation for the award of a production contract 

for a major system, the head of an agency shall consider 

requiring in the solicitation that an offeror include in its offer 

proposals described in paragraph (2). In determining whether 

to require the proposals, the head of the agency shall consider 

the purposes for which the system is being procured and the 

technology necessary to meet the system’s required capabilities. 

If the proposals are required, the head of the agency shall 

consider them in evaluating the offeror’s price. 

(2) CONTENT OF PROPOSALS.—The proposals that the head 

of an agency is to consider requiring in a solicitation for the 

award of a production contract are proposals identifying 

opportunities to ensure that the Federal Government will be 

able to obtain on a competitive basis items procured in connection with the system that are likely to be reprocured in substantial quantities during the service life of the system. Proposals 

submitted in response to this requirement may include the 

following: 

(A) Proposals to provide to the Federal Government the 

right to use technical data to be provided under the contract 

for competitive reprocurement of the item, together with 

the cost to the Federal Government of acquiring the data 

and the right to use the data. 

(B) Proposals for the qualification or development of multiple sources of supply for the item. 

(c) CONSIDERATION OF FACTORS AS OBJECTIVES IN NEGOTIA- TIONS.—If the head of an agency is making a noncompetitive award 

of a development contract or a production contract for a major 

system, the factors specified in subsections (a) and (b) to be considered in evaluating an offer for a contract may be considered as 

objectives in negotiating the contract to be awarded. 

§ 3309. Design-build selection procedures 

(a) AUTHORIZATION.—Unless the traditional acquisition approach 

of design-bid-build established under sections 1101 to 1104 of title 

40 or another acquisition procedure authorized by law is used, 

the head of an executive agency shall use the two-phase selection 

procedures authorized in this section for entering into a contract 

for the design and construction of a public building, facility, or 

work when a determination is made under subsection (b) that 

the procedures are appropriate for use. 

(b) CRITERIA FOR USE.—A contracting officer shall make a determination whether two-phase selection procedures are appropriate 

for use for entering into a contract for the design and construction 

of a public building, facility, or work when— 

(1) the contracting officer anticipates that 3 or more offers 

will be received for the contract; 

(2) design work must be performed before an offeror can 

develop a price or cost proposal for the contract; 

(3) the offeror will incur a substantial amount of expense 

in preparing the offer; and 

(4) the contracting officer has considered information such 

as the following: 

(A) The extent to which the project requirements have 

been adequately defined. 

(B) The time constraints for delivery of the project. 

(C) The capability and experience of potential contractors. 
H. R. 1107—84 

(D) The suitability of the project for use of the twophase selection procedures. 

(E) The capability of the agency to manage the twophase selection process. 

(F) Other criteria established by the agency. 

(c) PROCEDURES DESCRIBED.—Two-phase selection procedures consist of the following: 

(1) DEVELOPMENT OF SCOPE OF WORK STATEMENT.—The 

agency develops, either in-house or by contract, a scope of 

work statement for inclusion in the solicitation that defines 

the project and provides prospective offerors with sufficient 

information regarding the Federal Government’s requirements 

(which may include criteria and preliminary design, budget 

parameters, and schedule or delivery requirements) to enable 

the offerors to submit proposals that meet the Federal Government’s needs. If the agency contracts for development of the 

scope of work statement, the agency shall contract for architectural and engineering services as defined by and in accordance 

with sections 1101 to 1104 of title 40. 

(2) SOLICITATION OF PHASE-ONE PROPOSALS.—The contracting 

officer solicits phase-one proposals that— 

(A) include information on the offeror’s— 

(i) technical approach; and 

(ii) technical qualifications; and 

(B) do not include— 

(i) detailed design information; or 

(ii) cost or price information. 

(3) EVALUATION FACTORS.—The evaluation factors to be used 

in evaluating phase-one proposals are stated in the solicitation 

and include specialized experience and technical competence, 

capability to perform, past performance of the offeror’s team 

(including the architect-engineer and construction members of 

the team), and other appropriate factors, except that costrelated or price-related evaluation factors are not permitted. 

Each solicitation establishes the relative importance assigned 

to the evaluation factors and subfactors that must be considered 

in the evaluation of phase-one proposals. The agency evaluates 

phase-one proposals on the basis of the phase-one evaluation 

factors set forth in the solicitation. 

(4) SELECTION BY CONTRACTING OFFICER.— 

(A) NUMBER OF OFFERORS SELECTED AND WHAT IS TO

BE EVALUATED.—The contracting officer selects as the most 

highly qualified the number of offerors specified in the 

solicitation to provide the property or services under the 

contract and requests the selected offerors to submit phasetwo competitive proposals that include technical proposals 

and cost or price information. Each solicitation establishes 

with respect to phase two— 

(i) the technical submission for the proposal, 

including design concepts or proposed solutions to 

requirements addressed within the scope of work, or 

both; and 

(ii) the evaluation factors and subfactors, including 

cost or price, that must be considered in the evaluations of proposals in accordance with subsections (b) 

to (d) of section 3306 of this title. 
H. R. 1107—85 

(B) SEPARATE EVALUATIONS.—The contracting officer 

separately evaluates the submissions described in clauses 

(i) and (ii) of subparagraph (A). 

(5) AWARDING OF CONTRACT.—The agency awards the contract 

in accordance with chapter 37 of this title. 

(d) SOLICITATION TO STATE NUMBER OF OFFERORS TO BE

SELECTED FOR PHASE-TWO REQUESTS FOR COMPETITIVE PROPOSALS.—A solicitation issued pursuant to the procedures described 

in subsection (c) shall state the maximum number of offerors that 

are to be selected to submit competitive proposals pursuant to 

subsection (c)(4). The maximum number specified in the solicitation 

shall not exceed 5 unless the agency determines with respect to 

an individual solicitation that a specified number greater than 

5 is in the Federal Government’s interest and is consistent with 

the purposes and objectives of the two-phase selection process. 

(e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Federal 

Acquisition Regulation shall include guidance— 

(1) regarding the factors that may be considered in determining whether the two-phase contracting procedures authorized by subsection (a) are appropriate for use in individual 

contracting situations; 

(2) regarding the factors that may be used in selecting contractors; and 

(3) providing for a uniform approach to be used Governmentwide. 

§ 3310. Quantities to order 

(a) FACTORS AFFECTING QUANTITY TO ORDER.—Each executive 

agency shall procure supplies in a quantity that— 

(1) will result in the total cost and unit cost most advantageous to the Federal Government, where practicable; and 

(2) does not exceed the quantity reasonably expected to be 

required by the agency. 

(b) OFFEROR’S OPINION OF QUANTITY.—Each solicitation for a 

contract for supplies shall, if practicable, include a provision inviting 

each offeror responding to the solicitation to state an opinion on 

whether the quantity of supplies proposed to be procured is economically advantageous to the Federal Government and, if applicable, 

to recommend a quantity that would be more economically advantageous to the Federal Government. Each recommendation shall 

include a quotation of the total price and the unit price for supplies 

procured in each recommended quantity. 

§ 3311. Qualification requirement 

(a) DEFINITION.—In this section, the term ‘‘qualification requirement’’ means a requirement for testing or other quality assurance 

demonstration that must be completed by an offeror before award 

of a contract. 

(b) ACTIONS BEFORE ENFORCING QUALIFICATION REQUIREMENT.— 

Except as provided in subsection (c), the head of an agency, before 

enforcing any qualification requirement, shall— 

(1) prepare a written justification stating the necessity for 

establishing the qualification requirement and specify why the 

qualification requirement must be demonstrated before contract 

award; 

(2) specify in writing and make available to a potential offeror 

on request all requirements that a prospective offeror, or its 
H. R. 1107—86 

product, must satisfy to become qualified, with those requirements to be limited to those least restrictive to meet the purposes necessitating the establishment of the qualification 

requirement; 

(3) specify an estimate of the cost of testing and evaluation 

likely to be incurred by a potential offeror to become qualified; 

(4) ensure that a potential offeror is provided, on request, 

a prompt opportunity to demonstrate at its own expense (except 

as provided in subsection (d)) its ability to meet the standards 

specified for qualification using— 

(A) qualified personnel and facilities— 

(i) of the agency concerned; 

(ii) of another agency obtained through interagency 

agreement; or 

(iii) under contract; or 

(B) other methods approved by the agency (including 

use of approved testing and evaluation services not provided under contract to the agency); 

(5) if testing and evaluation services are provided under 

contract to the agency for the purposes of paragraph (4), provide 

to the extent possible that those services be provided by a 

contractor that— 

(A) is not expected to benefit from an absence of additional qualified sources; and 

(B) is required in the contract to adhere to any restriction 

on technical data asserted by the potential offeror seeking 

qualification; and 

(6) ensure that a potential offeror seeking qualification is 

promptly informed whether qualification is attained and, if 

not attained, is promptly furnished specific information about 

why qualification was not attained. 

(c) APPLICABILITY, WAIVER AUTHORITY, AND REFERRAL OF

OFFERS.— 

(1) APPLICABILITY.—Subsection (b) does not apply to a qualification requirement established by statute prior to October 

30, 1984. 

(2) WAIVER AUTHORITY.— (A) SUBMISSION OF DETERMINATION OF

UNREASONABLENESS.—Except as provided in subparagraph 

(C), if it is unreasonable to specify the standards for qualification that a prospective offeror or its product must satisfy, a determination to that effect shall be submitted to 

the advocate for competition of the procuring activity 

responsible for the purchase of the item subject to the 

qualification requirement. 

(B) AUTHORITY TO GRANT WAIVER.—After considering any 

comments of the advocate for competition reviewing the 

determination, the head of the procuring activity may waive 

the requirements of paragraphs (2) to (5) of subsection 

(b) for up to 2 years with respect to the item subject 

to the qualification requirement. 

(C) NONAPPLICABILITY TO QUALIFIED PRODUCTS LIST.— 

Waiver authority under this paragraph does not apply with 

respect to a qualified products list. 

(3) SUBMISSION AND CONSIDERATION OF OFFER NOT TO BE

DENIED.—A potential offeror may not be denied the opportunity 

to submit and have considered an offer for a contract solely 

because the potential offeror has not been identified as meeting 
H. R. 1107—87 

a qualification requirement if the potential offeror can demonstrate to the satisfaction of the contracting officer that the 

potential offeror or its product meets the standards established 

for qualification or can meet those standards before the date 

specified for award of the contract. 

(4) REFERRAL TO SMALL BUSINESS ADMINISTRATION NOT

REQUIRED.—This subsection does not require the referral of 

an offer to the Small Business Administration pursuant to 

section 8(b)(7) of the Small Business Act (15 U.S.C. 637(b)(7)) 

if the basis for the referral is a challenge by the offeror to 

either the validity of the qualification requirement or the 

offeror’s compliance with that requirement. 

(5) DELAY OF PROCUREMENT NOT REQUIRED.—The head of 

an agency need not delay a proposed procurement to comply 

with subsection (b) or to provide a potential offeror with an 

opportunity to demonstrate its ability to meet the standards 

specified for qualification. 

(d) FEWER THAN 2 ACTUAL MANUFACTURERS.— 

(1) SOLICITATION AND TESTING OF ADDITIONAL SOURCES OR

PRODUCTS.—If the number of qualified sources or qualified products available to compete actively for an anticipated future 

requirement is fewer than 2 actual manufacturers or the products of 2 actual manufacturers, respectively, the head of the 

agency concerned shall— 

(A) publish notice periodically soliciting additional 

sources or products to seek qualification, unless the contracting officer determines that doing so would compromise 

national security; and 

(B) subject to paragraph (2), bear the cost of conducting 

the specified testing and evaluation (excluding the cost 

associated with producing the item or establishing the 

production, quality control, or other system to be tested 

and evaluated) for a small business concern or a product 

manufactured by a small business concern that has met 

the standards specified for qualification and that could 

reasonably be expected to compete for a contract for that 

requirement. 

(2) WHEN AGENCY MAY BEAR COST.—The head of the agency 

concerned may bear the cost under paragraph (1)(B) only if 

the head of the agency determines that the additional qualified 

sources or products are likely to result in cost savings from 

increased competition for future requirements sufficient to 

offset (within a reasonable period of time considering the duration and dollar value of anticipated future requirements) the 

cost incurred by the agency. 

(3) CERTIFICATION REQUIRED.—The head of the agency shall 

require a prospective contractor requesting the Federal Government to bear testing and evaluation costs under paragraph 

(1)(B) to certify its status as a small business concern under 

section 3 of the Small Business Act (15 U.S.C. 632). 

(e) EXAMINATION AND REVALIDATION OF QUALIFICATION REQUIREMENT.—Within 7 years after the establishment of a qualification 

requirement, the need for the requirement shall be examined and 

the standards of the requirement revalidated in accordance with 

the requirements of subsection (b). This subsection does not apply 

in the case of a qualification requirement for which a waiver is 

in effect under subsection (c)(2). 
H. R. 1107—88 

(f) WHEN ENFORCEMENT OF QUALIFICATION REQUIREMENT NOT

ALLOWED.—Except in an emergency as determined by the head 

of the agency, after the head of the agency determines not to 

enforce a qualification requirement for a solicitation, the agency 

may not enforce the requirement unless the agency complies with 

the requirements of subsection (b). 

CHAPTER 35—TRUTHFUL COST OR PRICING DATA 

Sec. 

3501. General. 

3502. Required cost or pricing data and certification. 

3503. Exceptions. 

3504. Cost or pricing data on below-threshold contracts. 

3505. Submission of other information. 

3506. Price reductions for defective cost or pricing data. 

3507. Interest and penalties for certain overpayments. 

3508. Right to examine contractor records. 

3509. Notification of violations of Federal criminal law or overpayments. 

§ 3501. General 

(a) DEFINITIONS.—In this chapter: 

(1) COMMERCIAL ITEM.—The term ‘‘commercial item’’ has the 

meaning provided the term by section 103 of this title. 

(2) COST OR PRICING DATA.—The term ‘‘cost or pricing data’’ 

means all facts that, as of the date of agreement on the price 

of a contract (or the price of a contract modification) or, if 

applicable consistent with section 3506(a)(2) of this title, 

another date agreed upon between the parties, a prudent buyer 

or seller would reasonably expect to affect price negotiations 

significantly. The term does not include information that is 

judgmental, but does include factual information from which 

a judgment was derived. 

(3) SUBCONTRACT.—The term ‘‘subcontract’’ includes a 

transfer of commercial items between divisions, subsidiaries, 

or affiliates of a contractor or a subcontractor. 

(b) REGULATIONS.— 

(1) MINIMIZING ABUSE OF COMMERCIAL SERVICES ITEM

AUTHORITY.—The Federal Acquisition Regulation shall ensure 

that services that are not offered and sold competitively in 

substantial quantities in the commercial marketplace, but are 

of a type offered and sold competitively in substantial quantities 

in the commercial marketplace, may be treated as commercial 

items for purposes of this chapter only if the contracting officer 

determines in writing that the offeror has submitted sufficient 

information to evaluate, through price analysis, the reasonableness of the price for the services. 

(2) INFORMATION TO SUBMIT.—To the extent necessary to 

make a determination under paragraph (1), the contracting 

officer may request the offeror to submit— 

(A) prices paid for the same or similar commercial items 

under comparable terms and conditions by both government and commercial customers; and 

(B) if the contracting officer determines that the information described in subparagraph (A) is not sufficient to determine the reasonableness of price, other relevant information regarding the basis for price or cost, including information on labor costs, material costs, and overhead rates. 
H. R. 1107—89 

§ 3502. Required cost or pricing data and certification 

(a) WHEN REQUIRED.—The head of an executive agency shall 

require offerors, contractors, and subcontractors to make cost or 

pricing data available as follows: 

(1) OFFEROR FOR PRIME CONTRACT.—An offeror for a prime 

contract under this division to be entered into using procedures 

other than sealed-bid procedures shall be required to submit 

cost or pricing data before the award of a contract if— 

(A) in the case of a prime contract entered into after 

October 13, 1994, the price of the contract to the Federal 

Government is expected to exceed $500,000; and 

(B) in the case of a prime contract entered into on or 

before October 13, 1994, the price of the contract to the 

Federal Government is expected to exceed $100,000. 

(2) CONTRACTOR.—The contractor for a prime contract under 

this division shall be required to submit cost or pricing data 

before the pricing of a change or modification to the contract 

if— 

(A) in the case of a change or modification made to 

a prime contract referred to in paragraph (1)(A), the price 

adjustment is expected to exceed $500,000; 

(B) in the case of a change or modification made to 

a prime contract that was entered into on or before October 

13, 1994, and that has been modified pursuant to subsection (f), the price adjustment is expected to exceed 

$500,000; and 

(C) in the case of a change or modification not covered 

by subparagraph (A) or (B), the price adjustment is 

expected to exceed $100,000. 

(3) OFFEROR FOR SUBCONTRACT.—An offeror for a subcontract 

(at any tier) of a contract under this division shall be required 

to submit cost or pricing data before the award of the subcontract if the prime contractor and each higher-tier subcontractor have been required to make available cost or pricing 

data under this chapter and— 

(A) in the case of a subcontract under a prime contract 

referred to in paragraph (1)(A), the price of the subcontract 

is expected to exceed $500,000; 

(B) in the case of a subcontract entered into under a 

prime contract that was entered into on or before October 

13, 1994, and that has been modified pursuant to subsection (f), the price of the subcontract is expected to exceed 

$500,000; and 

(C) in the case of a subcontract not covered by subparagraph (A) or (B), the price of the subcontract is expected 

to exceed $100,000. 

(4) SUBCONTRACTOR.—The subcontractor for a subcontract 

covered by paragraph (3) shall be required to submit cost or 

pricing data before the pricing of a change or modification 

to the subcontract if— 

(A) in the case of a change or modification to a subcontract referred to in paragraph (3)(A) or (B), the price 

adjustment is expected to exceed $500,000; and 

(B) in the case of a change or modification to a subcontract referred to in paragraph (3)(C), the price adjustment is expected to exceed $100,000. 
H. R. 1107—90 

(b) CERTIFICATION.—A person required, as an offeror, contractor, 

or subcontractor, to submit cost or pricing data under subsection 

(a) (or required by the head of the procuring activity concerned 

to submit the data under section 3504 of this title) shall be required 

to certify that, to the best of the person’s knowledge and belief, 

the cost or pricing data submitted are accurate, complete, and 

current. 

(c) TO WHOM SUBMITTED.—Cost or pricing data required to be 

submitted under subsection (a) (or under section 3504 of this title), 

and a certification required to be submitted under subsection (b), 

shall be submitted— 

(1) in the case of a submission by a prime contractor (or 

an offeror for a prime contract), to the contracting officer for 

the contract (or a designated representative of the contracting 

officer); or 

(2) in the case of a submission by a subcontractor (or an 

offeror for a subcontract), to the prime contractor. 

(d) APPLICATION OF CHAPTER.—Except as provided under section 

3503 of this title, this chapter applies to contracts entered into 

by the head of an executive agency on behalf of a foreign government. 

(e) SUBCONTRACTS NOT AFFECTED BY WAIVER.—A waiver of 

requirements for submission of certified cost or pricing data that 

is granted under section 3503(a)(3) of this title in the case of 

a contract or subcontract does not waive the requirement under 

subsection (a)(3) of this section for submission of cost or pricing 

data in the case of subcontracts under that contract or subcontract 

unless the head of the procuring activity granting the waiver determines that the requirement under subsection (a)(3) of this section 

should be waived in the case of those subcontracts and justifies 

in writing the reason for the determination. 

(f) MODIFICATIONS TO PRIOR CONTRACTS.—On the request of a 

contractor that was required to submit cost or pricing data under 

subsection (a) in connection with a prime contract entered into 

on or before October 13, 1994, the head of the executive agency 

that entered into the contract shall modify the contract to reflect 

paragraphs (2)(B) and (3)(B) of subsection (a). All those modifications shall be made without requiring consideration. 

(g) ADJUSTMENT OF AMOUNTS.—Effective on October 1 of each 

year that is divisible by 5, each amount set forth in subsection 

(a) shall be adjusted to the amount that is equal to the fiscal 

year 1994 constant dollar value of the amount set forth. Any 

amount, as so adjusted, that is not evenly divisible by $50,000 

shall be rounded to the nearest multiple of $50,000. In the case 

of an amount that is evenly divisible by $25,000 but not evenly 

divisible by $50,000, the amount shall be rounded to the next 

higher multiple of $50,000. 

§ 3503. Exceptions 

(a) IN GENERAL.—Submission of certified cost or pricing data 

shall not be required under section 3502 of this title in the case 

of a contract, a subcontract, or a modification of a contract or 

subcontract— 

(1) for which the price agreed on is based on— 

(A) adequate price competition; or 

(B) prices set by law or regulation; 

(2) for the acquisition of a commercial item; or 
H. R. 1107—91 

(3) in an exceptional case when the head of the procuring 

activity, without delegation, determines that the requirements 

of this chapter may be waived and justifies in writing the 

reasons for the determination. 

(b) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR

COMMERCIAL ITEMS.—In the case of a modification of a contract 

or subcontract for a commercial item that is not covered by the 

exception to the submission of certified cost or pricing data in 

paragraph (1) or (2) of subsection (a), submission of certified cost 

or pricing data shall not be required under section 3502 of this 

title if— 

(1) the contract or subcontract being modified is a contract 

or subcontract for which submission of certified cost or pricing 

data may not be required by reason of paragraph (1) or (2) 

of subsection (a); and 

(2) the modification would not change the contract or subcontract from a contract or subcontract for the acquisition of 

a commercial item to a contract or subcontract for the acquisition of an item other than a commercial item. 

§ 3504. Cost or pricing data on below-threshold contracts 

(a) AUTHORITY TO REQUIRE SUBMISSION.—Subject to subsection 

(b), when certified cost or pricing data are not required to be 

submitted by section 3502 of this title for a contract, subcontract, 

or modification of a contract or subcontract, the data may nevertheless be required to be submitted by the head of the procuring 

activity, but only if the head of the procuring activity determines 

that the data are necessary for the evaluation by the agency of 

the reasonableness of the price of the contract, subcontract, or 

modification of a contract or subcontract. In any case in which 

the head of the procuring activity requires the data to be submitted 

under this section, the head of the procuring activity shall justify 

in writing the reason for the requirement. 

(b) EXCEPTION.—The head of the procuring activity may not 

require certified cost or pricing data to be submitted under this 

section for any contract or subcontract, or modification of a contract 

or subcontract, covered by the exceptions in section 3503(a)(1) or 

(2) of this title. 

(c) DELEGATION OF AUTHORITY PROHIBITED.—The head of a procuring activity may not delegate the functions under this section. 

§ 3505. Submission of other information 

(a) AUTHORITY TO REQUIRE SUBMISSION.—When certified cost 

or pricing data are not required to be submitted under this chapter 

for a contract, subcontract, or modification of a contract or subcontract, the contracting officer shall require submission of data 

other than certified cost or pricing data to the extent necessary 

to determine the reasonableness of the price of the contract, subcontract, or modification of the contract or subcontract. Except 

in the case of a contract or subcontract covered by the exceptions 

in section 3503(a)(1) of this title, the contracting officer shall require 

that the data submitted include, at a minimum, appropriate 

information on the prices at which the same item or similar items 

have previously been sold that is adequate for evaluating the 

reasonableness of the price for the procurement. 

(b) LIMITATIONS ON AUTHORITY.—The Federal Acquisition Regulation shall include the following provisions regarding the types of 
H. R. 1107—92 

information that contracting officers may require under subsection 

(a): 

(1) REASONABLE LIMITATIONS.—Reasonable limitations on 

requests for sales data relating to commercial items. 

(2) LIMITATION ON SCOPE OF REQUEST.—A requirement that 

a contracting officer limit, to the maximum extent practicable, 

the scope of any request for information relating to commercial 

items from an offeror to only that information that is in the 

form regularly maintained by the offeror in commercial operations. 

(3) INFORMATION NOT TO BE DISCLOSED.—A statement that 

any information received relating to commercial items that 

is exempt from disclosure under section 552(b) of title 5 shall 

not be disclosed by the Federal Government. 

§ 3506. Price reductions for defective cost or pricing data 

(a) PROVISION REQUIRING ADJUSTMENT.— 

(1) IN GENERAL.—A prime contract (or change or modification 

to a prime contract) under which a certificate under section 

3502(b) of this title is required shall contain a provision that 

the price of the contract to the Federal Government, including 

profit or fee, shall be adjusted to exclude any significant amount 

by which it may be determined by the head of the executive 

agency that the price was increased because the contractor 

(or any subcontractor required to make the certificate available) 

submitted defective cost or pricing data. 

(2) WHAT CONSTITUTES DEFECTIVE COST OR PRICING DATA.— 

For the purposes of this chapter, defective cost or pricing data 

are cost or pricing data that, as of the date of agreement 

on the price of the contract (or another date agreed on between 

the parties), were inaccurate, incomplete, or noncurrent. If for 

purposes of the preceding sentence the parties agree on a 

date other than the date of agreement on the price of the 

contract, the date agreed on by the parties shall be as close 

to the date of agreement on the price of the contract as is 

practicable. 

(b) VALID DEFENSE.—In determining for purposes of a contract 

price adjustment under a contract provision required by subsection 

(a) whether, and to what extent, a contract price was increased 

because the contractor (or a subcontractor) submitted defective cost 

or pricing data, it is a defense that the Federal Government did 

not rely on the defective data submitted by the contractor or subcontractor. 

(c) INVALID DEFENSES.—It is not a defense to an adjustment 

of the price of a contract under a contract provision required by 

subsection (a) that— 

(1) the price of the contract would not have been modified 

even if accurate, complete, and current cost or pricing data 

had been submitted by the contractor or subcontractor because 

the contractor or subcontractor— 

(A) was the sole source of the property or services procured; or 

(B) otherwise was in a superior bargaining position with 

respect to the property or services procured; 

(2) the contracting officer should have known that the cost 

or pricing data in issue were defective even though the contractor or subcontractor took no affirmative action to bring 
H. R. 1107—93 

the character of the data to the attention of the contracting 

officer; 

(3) the contract was based on an agreement between the 

contractor and the Federal Government about the total cost 

of the contract and there was no agreement about the cost 

of each item procured under the contract; or 

(4) the prime contractor or subcontractor did not submit 

a certification of cost or pricing data relating to the contract 

as required by section 3502(b) of this title. 

(d) OFFSETS.— 

(1) WHEN ALLOWED.—A contractor shall be allowed to offset 

an amount against the amount of a contract price adjustment 

under a contract provision required by subsection (a) if— 

(A) the contractor certifies to the contracting officer (or 

to a designated representative of the contracting officer) 

that, to the best of the contractor’s knowledge and belief, 

the contractor is entitled to the offset; and 

(B) the contractor proves that the cost or pricing data 

were available before the date of agreement on the price 

of the contract (or price of the modification), or, if 

applicable, consistent with subsection (a)(2), another date 

agreed on by the parties, and that the data were not 

submitted as specified in section 3502(c) of this title before 

that date. 

(2) WHEN NOT ALLOWED.—A contractor shall not be allowed 

to offset an amount otherwise authorized to be offset under 

paragraph (1) if— 

(A) the certification under section 3502(b) of this title 

with respect to the cost or pricing data involved was known 

to be false when signed; or 

(B) the Federal Government proves that, had the cost 

or pricing data referred to in paragraph (1)(B) been submitted to the Federal Government before date of agreement 

on the price of the contract (or price of the modification), 

or, if applicable, under subsection (a)(2), another date 

agreed on by the parties, the submission of the cost or 

pricing data would not have resulted in an increase in 

that price in the amount to be offset. 

§ 3507. Interest and penalties for certain overpayments 

(a) IN GENERAL.—If the Federal Government makes an overpayment to a contractor under a contract with an executive agency 

subject to this chapter and the overpayment was due to the submission by the contractor of defective cost or pricing data, the contractor 

shall be liable to the Federal Government— 

(1) for interest on the amount of the overpayment, to be 

computed— 

(A) for the period beginning on the date the overpayment 

was made to the contractor and ending on the date the 

contractor repays the amount of the overpayment to the 

Federal Government; and 

(B) at the current rate prescribed by the Secretary of 

the Treasury under section 6621 of the Internal Revenue 

Code of 1986 (26 U.S.C. 6621); and 

(2) if the submission of the defective data was a knowing 

submission, for an additional amount equal to the amount 

of the overpayment. 
H. R. 1107—94 

(b) LIABILITY NOT AFFECTED BY REFUSAL TO SUBMIT CERTIFICATION.—Any liability under this section of a contractor that submits cost or pricing data but refuses to submit the certification 

required by section 3502(b) of this title with respect to the cost 

or pricing data is not affected by the refusal to submit the certification. 

§ 3508. Right to examine contractor records 

For the purpose of evaluating the accuracy, completeness, and 

currency of cost or pricing data required to be submitted by this 

chapter, an executive agency shall have the authority provided 

by section 4706(b)(2) of this title. 

§ 3509. Notification of violations of Federal criminal law or 

overpayments 

(a) DEFINITION.—In this section, the term ‘‘covered contract’’ 

means any contract in an amount greater than $5,000,000 and 

more than 120 days in duration. 

(b) FEDERAL ACQUISITION REGULATION.—The Federal Acquisition 

Regulation shall include, pursuant to FAR Case 2007–006 (as published at 72 Fed. Reg. 64019, November 14, 2007) or any followon FAR case, provisions that require timely notification by Federal 

contractors of violations of Federal criminal law or overpayments 

in connection with the award or performance of covered contracts 

or subcontracts, including those performed outside the United 

States and those for commercial items. 

CHAPTER 37—AWARDING OF CONTRACTS 

Sec. 

3701. Basis of award and rejection. 

3702. Sealed bids. 

3703. Competitive proposals. 

3704. Post-award debriefings. 

3705. Pre-award debriefings. 

3706. Encouragement of alternative dispute resolution. 

3707. Antitrust violations. 

3708. Protests. 

§ 3701. Basis of award and rejection 

(a) AWARD.—An executive agency shall evaluate sealed bids and 

competitive proposals, and award a contract, based solely on the 

factors specified in the solicitation. 

(b) REJECTION.—All sealed bids or competitive proposals received 

in response to a solicitation may be rejected if the agency head 

determines that rejection is in the public interest. 

§ 3702. Sealed bids 

(a) OPENING OF BIDS.—Sealed bids shall be opened publicly at 

the time and place stated in the solicitation. 

(b) CRITERIA FOR AWARDING CONTRACT.—The executive agency 

shall evaluate the bids in accordance with section 3701(a) of this 

title without discussions with the bidders and, except as provided 

in section 3701(b) of this title, shall award a contract with reasonable promptness to the responsible source whose bid conforms to 

the solicitation and is most advantageous to the Federal Government, considering only price and the other price-related factors 

included in the solicitation. 

(c) NOTICE OF AWARD.—The award of a contract shall be made 

by transmitting, in writing or by electronic means, notice of the 
H. R. 1107—95 

award to the successful bidder. Within 3 days after the date of 

contract award, the executive agency shall notify, in writing or 

by electronic means, each bidder not awarded the contract that 

the contract has been awarded. 

§ 3703. Competitive proposals 

(a) EVALUATION AND AWARD.—An executive agency shall evaluate 

competitive proposals in accordance with section 3701(a) of this 

title and may award a contract— 

(1) after discussions with the offerors, provided that written 

or oral discussions have been conducted with all responsible 

offerors who submit proposals within the competitive range; 

or 

(2) based on the proposals received and without discussions 

with the offerors (other than discussions conducted for the 

purpose of minor clarification), if, as required by section 

3306(b)(2)(B)(i) of this title, the solicitation included a statement that proposals are intended to be evaluated, and award 

made, without discussions unless discussions are determined 

to be necessary. 

(b) LIMIT ON NUMBER OF PROPOSALS.—If the contracting officer 

determines that the number of offerors that would otherwise be 

included in the competitive range under subsection (a)(1) exceeds 

the number at which an efficient competition can be conducted, 

the contracting officer may limit the number of proposals in the 

competitive range, in accordance with the criteria specified in the 

solicitation, to the greatest number that will permit an efficient 

competition among the offerors rated most highly in accordance 

with those criteria. 

(c) CRITERIA FOR AWARDING CONTRACT.—Except as otherwise provided in section 3701(b) of this title, the executive agency shall 

award a contract with reasonable promptness to the responsible 

source whose proposal is most advantageous to the Federal Government, considering only cost or price and the other factors included 

in the solicitation. 

(d) NOTICE OF AWARD.—The executive agency shall award the 

contract by transmitting, in writing or by electronic means, notice 

of the award to that source and, within 3 days after the date 

of contract award, shall notify, in writing or by electronic means, 

all other offerors of the rejection of their proposals. 

§ 3704. Post-award debriefings 

(a) REQUEST FOR DEBRIEFING.—When a contract is awarded by 

the head of an executive agency on the basis of competitive proposals, an unsuccessful offeror, on written request received by the 

agency within 3 days after the date on which the unsuccessful 

offeror receives the notification of the contract award, shall be 

debriefed and furnished the basis for the selection decision and 

contract award. 

(b) WHEN DEBRIEFING TO BE CONDUCTED.—The executive agency 

shall debrief the offeror within, to the maximum extent practicable, 

5 days after receipt of the request by the executive agency. 

(c) INFORMATION TO BE PROVIDED.—The debriefing shall include, 

at a minimum— 

(1) the executive agency’s evaluation of the significant weak 

or deficient factors in the offeror’s offer; 

(2) the overall evaluated cost and technical rating of the 

offer of the contractor awarded the contract and the overall 
H. R. 1107—96 

evaluated cost and technical rating of the offer of the debriefed 

offeror; 

(3) the overall ranking of all offers; 

(4) a summary of the rationale for the award; 

(5) in the case of a proposal that includes a commercial 

item that is an end item under the contract, the make and 

model of the item being provided in accordance with the offer 

of the contractor awarded the contract; and 

(6) reasonable responses to relevant questions posed by the 

debriefed offeror as to whether source selection procedures set 

forth in the solicitation, applicable regulations, and other 

applicable authorities were followed by the executive agency. 

(d) INFORMATION NOT TO BE INCLUDED.—The debriefing may 

not include point-by-point comparisons of the debriefed offeror’s 

offer with other offers and may not disclose any information that 

is exempt from disclosure under section 552(b) of title 5. 

(e) INCLUSION OF STATEMENT IN SOLICITATION.—Each solicitation 

for competitive proposals shall include a statement that information 

described in subsection (c) may be disclosed in post-award 

debriefings. 

(f) AFTER SUCCESSFUL PROTEST.—If, within one year after the 

date of the contract award and as a result of a successful procurement protest, the executive agency seeks to fulfill the requirement 

under the protested contract either on the basis of a new solicitation 

of offers or on the basis of new best and final offers requested 

for that contract, the head of the executive agency shall make 

available to all offerors— 

(1) the information provided in debriefings under this section 

regarding the offer of the contractor awarded the contract; 

and 

(2) the same information that would have been provided 

to the original offerors. 

(g) SUMMARY TO BE INCLUDED IN FILE.—The contracting officer 

shall include a summary of the debriefing in the contract file. 

§ 3705. Pre-award debriefings 

(a) REQUEST FOR DEBRIEFING.—When the contracting officer 

excludes an offeror submitting a competitive proposal from the 

competitive range (or otherwise excludes that offeror from further 

consideration prior to the final source selection decision), the 

excluded offeror may request in writing, within 3 days after the 

date on which the excluded offeror receives notice of its exclusion, 

a debriefing prior to award. 

(b) WHEN DEBRIEFING TO BE CONDUCTED.—The contracting 

officer shall make every effort to debrief the unsuccessful offeror 

as soon as practicable but may refuse the request for a debriefing 

if it is not in the best interests of the Federal Government to 

conduct a debriefing at that time. 

(c) PRECONDITION FOR POST-AWARD DEBRIEFING.—The contracting 

officer is required to debrief an excluded offeror in accordance 

with section 3704 of this title only if that offeror requested and 

was refused a pre-award debriefing under subsections (a) and (b). 

(d) INFORMATION TO BE PROVIDED.—The debriefing conducted 

under this section shall include— 

(1) the executive agency’s evaluation of the significant elements in the offeror’s offer; 

(2) a summary of the rationale for the offeror’s exclusion; 

and 
H. R. 1107—97 

(3) reasonable responses to relevant questions posed by the 

debriefed offeror as to whether source selection procedures set 

forth in the solicitation, applicable regulations, and other 

applicable authorities were followed by the executive agency. 

(e) INFORMATION NOT TO BE DISCLOSED.—The debriefing conducted pursuant to this section may not disclose the number or 

identity of other offerors and shall not disclose information about 

the content, ranking, or evaluation of other offerors’ proposals. 

(f) SUMMARY TO BE INCLUDED IN FILE.—The contracting officer 

shall include a summary of the debriefing in the contract file. 

§ 3706. Encouragement of alternative dispute resolution 

The Federal Acquisition Regulation shall include a provision 

encouraging the use of alternative dispute resolution techniques 

to provide informal, expeditious, and inexpensive procedures for 

an offeror to consider using before filing a protest, prior to the 

award of a contract, of the exclusion of the offeror from the competitive range (or otherwise from further consideration) for that contract. 

§ 3707. Antitrust violations 

If the agency head considers that a bid or proposal evidences 

a violation of the antitrust laws, the agency head shall refer the 

bid or proposal to the Attorney General for appropriate action. 

§ 3708. Protests 

(a) PROTEST FILE.— 

(1) ESTABLISHMENT AND ACCESS.—If, in the case of a solicitation for a contract issued by, or an award or proposed award 

of a contract by, the head of an executive agency, a protest 

is filed pursuant to the procedures in subchapter V of chapter 

35 of title 31, and an actual or prospective offeror requests, 

a file of the protest shall be established by the procuring 

activity and reasonable access shall be provided to actual or 

prospective offerors. 

(2) REDACTED INFORMATION.—Information exempt from 

disclosure under section 552 of title 5 may be redacted in 

a file established pursuant to paragraph (1) unless an applicable 

protective order provides otherwise. 

(b) AGENCY ACTIONS ON PROTESTS.—If, in connection with a protest, the head of an executive agency determines that a solicitation, 

proposed award, or award does not comply with the requirements 

of law or regulation, the head of the executive agency may— 

(1) take any action set out in subparagraphs (A) to (F) of 

subsection (b)(1) of section 3554 of title 31; and 

(2) pay costs described in paragraph (1) of section 3554(c) 

of title 31 within the limits referred to in paragraph (2) of 

section 3554(c). 

CHAPTER 39—SPECIFIC TYPES OF CONTRACTS 

Sec. 

3901. Contracts awarded using procedures other than sealed-bid procedures. 

3902. Severable services contracts for periods crossing fiscal years. 

3903. Multiyear contracts. 

3904. Contract authority for severable services contracts and multiyear contracts. 

3905. Cost contracts. 

3906. Cost-reimbursement contracts. 
H. R. 1107—98 

§ 3901. Contracts awarded using procedures other than 

sealed-bid procedures 

(a) AUTHORIZED TYPES.—Except as provided in section 3905 of 

this title, contracts awarded after using procedures other than 

sealed-bid procedures may be of any type which in the opinion 

of the agency head will promote the best interests of the Federal 

Government. 

(b) REQUIRED WARRANTY.— (1) CONTENT.—Every contract awarded after using procedures 

other than sealed-bid procedures shall contain a suitable warranty, as determined by the agency head, by the contractor 

that no person or selling agency has been employed or retained 

to solicit or secure the contract on an agreement or understanding for a commission, percentage, brokerage, or contingent 

fee, except for bona fide employees or bona fide established 

commercial or selling agencies the contractor maintains to 

secure business. 

(2) REMEDY FOR BREACH OR VIOLATION.—For the breach or 

violation of the warranty, the Federal Government may annul 

the contract without liability or deduct from the contract price 

or consideration the full amount of the commission, percentage, 

brokerage, or contingent fee. 

(3) NONAPPLICATION.—Paragraph (1) does not apply to a contract for an amount that is not greater than the simplified 

acquisition threshold or to a contract for the acquisition of 

commercial items. 

§ 3902. Severable services contracts for periods crossing 

fiscal years 

(a) AUTHORITY TO ENTER INTO CONTRACT.—The head of an executive agency may enter into a contract for the procurement of severable services for a period that begins in one fiscal year and ends 

in the next fiscal year if (without regard to any option to extend 

the period of the contract) the contract period does not exceed 

one year. 

(b) OBLIGATION OF FUNDS.—Funds made available for a fiscal 

year may be obligated for the total amount of a contract entered 

into under the authority of this section. 

§ 3903. Multiyear contracts 

(a) DEFINITION.—In this section, a multiyear contract is a contract 

for the purchase of property or services for more than one, but 

not more than 5, program years. 

(b) AUTHORITY TO ENTER INTO CONTRACT.—An executive agency 

may enter into a multiyear contract for the acquisition of property 

or services if— 

(1) funds are available and obligated for the contract, for 

the full period of the contract or for the first fiscal year in 

which the contract is in effect, and for the estimated costs 

associated with a necessary termination of the contract; and 

(2) the executive agency determines that— 

(A) the need for the property or services is reasonably 

firm and continuing over the period of the contract; and 

(B) a multiyear contract will serve the best interests 

of the Federal Government by encouraging full and open 

competition or promoting economy in administration, 

performance, and operation of the agency’s programs. 
H. R. 1107—99 

(c) TERMINATION CLAUSE.—A multiyear contract entered into 

under the authority of this section shall include a clause that 

provides that the contract shall be terminated if funds are not 

made available for the continuation of the contract in a fiscal 

year covered by the contract. Funds available for paying termination 

costs shall remain available for that purpose until the costs associated with termination of the contract are paid. 

(d) CANCELLATION CEILING NOTICE.—Before a contract described 

in subsection (b) that contains a clause setting forth a cancellation 

ceiling in excess of $10,000,000 may be awarded, the executive 

agency shall give written notification of the proposed contract and 

of the proposed cancellation ceiling for that contract to Congress. 

The contract may not be awarded until the end of the 30-day 

period beginning on the date of the notification. 

(e) CONTINGENCY CLAUSE FOR APPROPRIATION OF FUNDS.—A 

multiyear contract may provide that performance under the contract 

after the first year of the contract is contingent on the appropriation 

of funds and (if the contract does so provide) that a cancellation 

payment shall be made to the contractor if the funds are not 

appropriated. 

(f) OTHER LAW NOT AFFECTED.—This section does not modify 

or affect any other provision of law that authorizes multiyear contracts. 

§ 3904. Contract authority for severable services contracts 

and multiyear contracts 

(a) COMPTROLLER GENERAL.—The Comptroller General may use 

available funds to enter into contracts for the procurement of severable services for a period that begins in one fiscal year and ends 

in the next fiscal year and to enter into multiyear contracts for 

the acquisition of property and nonaudit-related services to the 

same extent as executive agencies under sections 3902 and 3903 

of this title. 

(b) LIBRARY OF CONGRESS.—The Library of Congress may use 

available funds to enter into contracts for the lease or procurement 

of severable services for a period that begins in one fiscal year 

and ends in the next fiscal year and to enter into multiyear contracts 

for the acquisition of property and services pursuant to sections 

3902 and 3903 of this title. 

(c) CHIEF ADMINISTRATIVE OFFICER OF THE HOUSE OF REPRESENTATIVES.—The Chief Administrative Officer of the House of Representatives may enter into— 

(1) contracts for the procurement of severable services for 

a period that begins in one fiscal year and ends in the next 

fiscal year to the same extent as the head of an executive 

agency under the authority of section 3902 of this title; and 

(2) multiyear contracts for the acquisitions of property and 

nonaudit-related services to the same extent as executive agencies under the authority of section 3903 of this title. 

(d) CONGRESSIONAL BUDGET OFFICE.—The Congressional Budget 

Office may use available funds to enter into contracts for the 

procurement of severable services for a period that begins in one 

fiscal year and ends in the next fiscal year and may enter into 

multiyear contracts for the acquisition of property and services 

to the same extent as executive agencies under the authority of 

sections 3902 and 3903 of this title. 

(e) SECRETARY AND SERGEANT AT ARMS AND DOORKEEPER OF

THE SENATE.—Subject to regulations prescribed by the Committee 
H. R. 1107—100 

on Rules and Administration of the Senate, the Secretary and 

the Sergeant at Arms and Doorkeeper of the Senate may enter 

into— 

(1) contracts for the procurement of severable services for 

a period that begins in one fiscal year and ends in the next 

fiscal year to the same extent and under the same conditions 

as the head of an executive agency under the authority of 

section 3902 of this title; and 

(2) multiyear contracts for the acquisition of property and 

services to the same extent and under the same conditions 

as executive agencies under the authority of section 3903 of 

this title. 

(f) CAPITOL POLICE.—The United States Capitol Police may enter 

into— 

(1) contracts for the procurement of severable services for 

a period that begins in one fiscal year and ends in the next 

fiscal year to the same extent as the head of an executive 

agency under the authority of section 3902 of this title; and 

(2) multiyear contracts for the acquisitions of property and 

nonaudit-related services to the same extent as executive agencies under the authority of section 3903 of this title. 

(g) ARCHITECT OF THE CAPITOL.—The Architect of the Capitol 

may enter into— 

(1) contracts for the procurement of severable services for 

a period that begins in one fiscal year and ends in the next 

fiscal year to the same extent as the head of an executive 

agency under the authority of section 3902 of this title; and 

(2) multiyear contracts for the acquisitions of property and 

nonaudit-related services to the same extent as executive agencies under the authority of section 3903 of this title. 

(h) SECRETARY OF THE SMITHSONIAN INSTITUTION.—The Secretary 

of the Smithsonian Institution may enter into— 

(1) contracts for the procurement of severable services for 

a period that begins in one fiscal year and ends in the next 

fiscal year under the authority of section 3902 of this title; 

and 

(2) multiyear contracts for the acquisition of property and 

services under the authority of section 3903 of this title. 

§ 3905. Cost contracts 

(a) COST-PLUS-A-PERCENTAGE-OF-COST CONTRACTS DIS- ALLOWED.—The cost-plus-a-percentage-of-cost system of contracting 

shall not be used. 

(b) COST-PLUS-A-FIXED-FEE CONTRACTS.— 

(1) IN GENERAL.—Except as provided in paragraphs (2) and 

(3), the fee in a cost-plus-a-fixed-fee contract shall not exceed 

10 percent of the estimated cost of the contract, not including 

the fee, as determined by the agency head at the time of 

entering into the contract. 

(2) EXPERIMENTAL, DEVELOPMENTAL, OR RESEARCH WORK.— 

The fee in a cost-plus-a-fixed-fee contract for experimental, 

developmental, or research work shall not exceed 15 percent 

of the estimated cost of the contract, not including the fee. 

(3) ARCHITECTURAL OR ENGINEERING SERVICES.—The fee in 

a cost-plus-a-fixed-fee contract for architectural or engineering 

services relating to any public works or utility project may 

include the contractor’s costs and shall not exceed 6 percent 

of the estimated cost, not including the fee, as determined 
H. R. 1107—101 

by the agency head at the time of entering into the contract, 

of the project to which the fee applies. 

(c) NOTIFICATION.—All cost and cost-plus-a-fixed-fee contracts 

shall provide for advance notification by the contractor to the procuring agency of any subcontract on a cost-plus-a-fixed-fee basis 

and of any fixed-price subcontract or purchase order which exceeds 

in dollar amount either the simplified acquisition threshold or 5 

percent of the total estimated cost of the prime contract. 

(d) RIGHT TO AUDIT.—A procuring agency, through any authorized 

representative thereof, has the right to inspect the plans and to 

audit the books and records of a prime contractor or subcontractor 

engaged in the performance of a cost or cost-plus-a-fixed-fee contract. 

§ 3906. Cost-reimbursement contracts 

(a) DEFINITION.—In this section, the term ‘‘executive agency’’ has 

the same meaning given in section 133 of this title. 

(b) REGULATIONS ON THE USE OF COST-REIMBURSEMENT CONTRACTS.—The Federal Acquisition Regulation shall address the use 

of cost-reimbursement contracts. 

(c) CONTENT.—The regulations promulgated under subsection (b) 

shall include guidance regarding— 

(1) when and under what circumstances cost-reimbursement 

contracts are appropriate; 

(2) the acquisition plan findings necessary to support a decision to use cost-reimbursement contracts; and 

(3) the acquisition workforce resources necessary to award 

and manage cost-reimbursement contracts. 

(d) ANNUAL REPORT.— 

(1) IN GENERAL.—The Director of the Office of Management 

and Budget shall submit an annual report to Congressional 

committees identified in subsection (e) on the use of costreimbursement contracts and task or delivery orders by all 

executive agencies. 

(2) CONTENTS.—The report shall include— 

(A) the total number and value of contracts awarded 

and orders issued during the covered fiscal year; 

(B) the total number and value of cost-reimbursement 

contracts awarded and orders issued during the covered 

fiscal year; and 

(C) an assessment of the effectiveness of the regulations 

promulgated pursuant to subsection (b) in ensuring the 

appropriate use of cost-reimbursement contracts. 

(3) TIME REQUIREMENTS.— 

(A) DEADLINE.—The report shall be submitted no later 

than March 1 and shall cover the fiscal year ending September 30 of the prior year. 

(B) LIMITATION.—The report shall be submitted from 

March 1, 2009, until March 1, 2014. 

(e) CONGRESSIONAL COMMITTEES.—The report required by subsection (d) shall be submitted to— 

(1) the Committee on Oversight and Government Reform 

of the House of Representatives; 

(2) the Committee on Homeland Security and Governmental 

Affairs of the Senate; 

(3) the Committees on Appropriations of the House of Representatives and the Senate; and 
H. R. 1107—102 

(4) in the case of the Department of Defense and the Department of Energy, the Committees on Armed Services of the 

Senate and the House of Representatives. 

CHAPTER 41—TASK AND DELIVERY ORDER CONTRACTS 

Sec. 

4101. Definitions. 

4102. Authorities or responsibilities not affected. 

4103. General authority. 

4104. Guidance on use of task and delivery order contracts. 

4105. Advisory and assistance services. 

4106. Orders. 

§ 4101. Definitions 

In this chapter: 

(1) DELIVERY ORDER CONTRACT.—The term ‘‘delivery order 

contract’’ means a contract for property that— 

(A) does not procure or specify a firm quantity of property 

(other than a minimum or maximum quantity); and 

(B) provides for the issuance of orders for the delivery 

of property during the period of the contract. 

(2) TASK ORDER CONTRACT.—The term ‘‘task order contract’’ 

means a contract for services that— 

(A) does not procure or specify a firm quantity of services 

(other than a minimum or maximum quantity); and 

(B) provides for the issuance of orders for the performance of tasks during the period of the contract. 

§ 4102. Authorities or responsibilities not affected 

This chapter does not modify or supersede, and is not intended 

to impair or restrict, authorities or responsibilities under sections 

1101 to 1104 of title 40. 

§ 4103. General authority 

(a) AUTHORITY TO AWARD.—Subject to the requirements of this 

section, section 4106 of this title, and other applicable law, the 

head of an executive agency may enter into a task or delivery 

order contract for procurement of services or property. 

(b) SOLICITATION.—The solicitation for a task or delivery order 

contract shall include— 

(1) the period of the contract, including the number of options 

to extend the contract and the period for which the contract 

may be extended under each option; 

(2) the maximum quantity or dollar value of the services 

or property to be procured under the contract; and 

(3) a statement of work, specifications, or other description 

that reasonably describes the general scope, nature, complexity, 

and purposes of the services or property to be procured under 

the contract. 

(c) APPLICABILITY OF RESTRICTION ON USE OF NONCOMPETITIVE

PROCEDURES.—The head of an executive agency may use procedures 

other than competitive procedures to enter into a task or delivery 

order contract under this section only if an exception in section 

3304(a) of this title applies to the contract and the use of those 

procedures is approved in accordance with section 3304(e) of this 

title. 

(d) SINGLE AND MULTIPLE CONTRACT AWARDS.— 

(1) EXERCISE OF AUTHORITY.—The head of an executive 

agency may exercise the authority provided in this section— 
H. R. 1107—103 

(A) to award a single task or delivery order contract; 

or 

(B) if the solicitation states that the head of the executive 

agency has the option to do so, to award separate task 

or delivery order contracts for the same or similar services 

or property to 2 or more sources. 

(2) DETERMINATION NOT REQUIRED.—No determination under 

section 3303 of this title is required for an award of multiple 

task or delivery order contracts under paragraph (1)(B). 

(3) SINGLE SOURCE AWARD FOR TASK OR DELIVERY ORDER

CONTRACTS EXCEEDING $100,000,000.— 

(A) WHEN SINGLE AWARDS ARE ALLOWED.—No task or 

delivery order contract in an amount estimated to exceed 

$100,000,000 (including all options) may be awarded to 

a single source unless the head of the executive agency 

determines in writing that— 

(i) the task or delivery orders expected under the 

contract are so integrally related that only a single 

source can reasonably perform the work; 

(ii) the contract provides only for firm, fixed price 

task orders or delivery orders for— 

(I) products for which unit prices are established 

in the contract; or 

(II) services for which prices are established in 

the contract for the specific tasks to be performed; 

(iii) only one source is qualified and capable of performing the work at a reasonable price to the Federal 

Government; or 

(iv) because of exceptional circumstances, it is necessary in the public interest to award the contract 

to a single source. 

(B) NOTIFICATION OF CONGRESS.—The head of the executive agency shall notify Congress within 30 days after 

any determination under subparagraph (A)(iv). 

(4) REGULATIONS.—Regulations implementing this subsection 

shall establish— 

(A) a preference for awarding, to the maximum extent 

practicable, multiple task or delivery order contracts for 

the same or similar services or property under paragraph 

(1)(B); and 

(B) criteria for determining when award of multiple task 

or delivery order contracts would not be in the best interest 

of the Federal Government. 

(e) CONTRACT MODIFICATIONS.—A task or delivery order may 

not increase the scope, period, or maximum value of the task 

or delivery order contract under which the order is issued. The 

scope, period, or maximum value of the contract may be increased 

only by modification of the contract. 

(f) INAPPLICABILITY TO CONTRACTS FOR ADVISORY AND ASSISTANCE

SERVICES.—Except as otherwise specifically provided in section 4105 

of this title, this section does not apply to a task or delivery 

order contract for the acquisition of advisory and assistance services 

(as defined in section 1105(g) of title 31). 

(g) RELATIONSHIP TO OTHER CONTRACTING AUTHORITY.—Nothing 

in this section may be construed to limit or expand any authority 

of the head of an executive agency or the Administrator of General 

Services to enter into schedule, multiple award, or task or delivery 

order contracts under any other provision of law. 
H. R. 1107—104 

§ 4104. Guidance on use of task and delivery order contracts 

(a) GUIDANCE IN FEDERAL ACQUISITION REGULATION.—The Federal Acquisition Regulation issued in accordance with sections 

1121(b) and 1303(a)(1) of this title shall provide guidance to agencies 

on the appropriate use of task and delivery order contracts in 

accordance with this chapter and sections 2304a to 2304d of title 

10. 

(b) CONTENT OF REGULATIONS.—The regulations issued pursuant 

to subsection (a) at a minimum shall provide specific guidance 

on— 

(1) the appropriate use of Government-wide and other multiagency contracts entered into in accordance with this chapter 

and sections 2304a to 2304d of title 10; and 

(2) steps that agencies should take in entering into and 

administering multiple award task and delivery order contracts 

to ensure compliance with the requirement in— 

(A) section 11312 of title 40 for capital planning and 

investment control in purchases of information technology 

products and services; 

(B) section 4106(c) of this title and section 2304c(b) of 

title 10 to ensure that all contractors are afforded a fair 

opportunity to be considered for the award of task and 

delivery orders; and 

(C) section 4106(e) of this title and section 2304c(c) of 

title 10 for a statement of work in each task or delivery 

order issued that clearly specifies all tasks to be performed 

or property to be delivered under the order. 

(c) FEDERAL SUPPLY SCHEDULES PROGRAM.—The Administrator 

for Federal Procurement Policy shall consult with the Administrator 

of General Services to assess the effectiveness of the multiple 

awards schedule program of the General Services Administration 

referred to in section 152(3) of this title that is administered as 

the Federal Supply Schedules program. The assessment shall 

include examination of— 

(1) the administration of the program by the Administrator 

of General Services; and 

(2) the ordering and program practices followed by Federal 

customer agencies in using schedules established under the 

program. 

§ 4105. Advisory and assistance services 

(a) DEFINITION.—In this section, the term ‘‘advisory and assistance services’’ has the same meaning given that term in section 

1105(g) of title 31. 

(b) AUTHORITY TO AWARD.— 

(1) IN GENERAL.—Subject to the requirements of this section, 

section 4106 of this title, and other applicable law, the head 

of an executive agency may enter into a task order contract 

for procurement of advisory and assistance services. 

(2) ONLY UNDER THIS SECTION.—The head of an executive 

agency may enter into a task order contract for advisory and 

assistance services only under this section. 

(c) CONTRACT PERIOD.—The period of a task order contract 

entered into under this section, including all periods of extensions 

of the contract under options, modifications, or otherwise, may 

not exceed 5 years unless a longer period is specifically authorized 

in a law that is applicable to the contract. 
H. R. 1107—105 

(d) CONTENT OF NOTICE.—The notice required by section 1708 

of this title and section 8(e) of the Small Business Act (15 U.S.C. 

637(e)) shall reasonably and fairly describe the general scope, magnitude, and duration of the proposed task order contract in a 

manner that would reasonably enable a potential offeror to decide 

whether to request the solicitation and consider submitting an 

offer. 

(e) REQUIRED CONTENT OF SOLICITATION AND CONTRACT.— (1) SOLICITATION.—The solicitation shall include the information (regarding services) described in section 4103(b) of this 

title. 

(2) CONTRACT.—A task order contract entered into under 

this section shall contain the same information that is required 

by paragraph (1) to be included in the solicitation of offers 

for that contract. 

(f) MULTIPLE AWARDS.— (1) AUTHORITY TO MAKE MULTIPLE AWARDS.—On the basis 

of one solicitation, the head of an executive agency may award 

separate task order contracts under this section for the same 

or similar services to 2 or more sources if the solicitation 

states that the head of the executive agency has the option 

to do so. 

(2) CONTENT OF SOLICITATION.—In the case of a task order 

contract for advisory and assistance services to be entered 

into under this section, if the contract period is to exceed 

3 years and the contract amount is estimated to exceed 

$10,000,000 (including all options), the solicitation shall— 

(A) provide for a multiple award authorized under paragraph (1); and 

(B) include a statement that the head of the executive 

agency may also elect to award only one task order contract 

if the head of the executive agency determines in writing 

that only one of the offerors is capable of providing the 

services required at the level of quality required. 

(3) NONAPPLICATION.—Paragraph (2) does not apply in the 

case of a solicitation for which the head of the executive agency 

concerned determines in writing that, because the services 

required under the contract are unique or highly specialized, 

it is not practicable to award more than one contract. 

(g) CONTRACT MODIFICATIONS.— 

(1) INCREASE IN SCOPE, PERIOD, OR MAXIMUM VALUE OF CONTRACT ONLY BY MODIFICATION OF CONTRACT.—A task order may 

not increase the scope, period, or maximum value of the task 

order contract under which the order is issued. The scope, 

period, or maximum value of the contract may be increased 

only by modification of the contract. 

(2) USE OF COMPETITIVE PROCEDURES.—Unless use of procedures other than competitive procedures is authorized by an 

exception in section 3304(a) of this title and approved in accordance with section 3304(e) of this title, competitive procedures 

shall be used for making such a modification. 

(3) NOTICE.—Notice regarding the modification shall be provided in accordance with section 1708 of this title and section 

8(e) of the Small Business Act (15 U.S.C. 637(e)). 

(h) CONTRACT EXTENSIONS.— 

(1) WHEN CONTRACT MAY BE EXTENDED.—Notwithstanding 

the limitation on the contract period set forth in subsection 

(c) or in a solicitation or contract pursuant to subsection (f), 
H. R. 1107—106 

a contract entered into by the head of an executive agency 

under this section may be extended on a sole-source basis 

for a period not exceeding 6 months if the head of the executive 

agency determines that— 

(A) the award of a follow-on contract has been delayed 

by circumstances that were not reasonably foreseeable at 

the time the initial contract was entered into; and 

(B) the extension is necessary to ensure continuity of 

the receipt of services pending the award of, and commencement of performance under, the follow-on contract. 

(2) LIMIT OF ONE EXTENSION.—A task order contract may 

be extended under paragraph (1) only once and only in accordance with the limitations and requirements of this subsection. 

(i) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does 

not apply to a contract for the acquisition of property or services 

that includes acquisition of advisory and assistance services if the 

head of the executive agency entering into the contract determines 

that, under the contract, advisory and assistance services are necessarily incident to, and not a significant component of, the contract. 

§ 4106. Orders 

(a) APPLICATION.—This section applies to task and delivery order 

contracts entered into under sections 4103 and 4105 of this title. 

(b) ACTIONS NOT REQUIRED FOR ISSUANCE OF ORDERS.—The following actions are not required for issuance of a task or delivery 

order under a task or delivery order contract: 

(1) A separate notice for the order under section 1708 of 

this title or section 8(e) of the Small Business Act (15 U.S.C. 

637(e)). 

(2) Except as provided in subsection (c), a competition (or 

a waiver of competition approved in accordance with section 

3304(e) of this title) that is separate from that used for entering 

into the contract. 

(c) MULTIPLE AWARD CONTRACTS.—When multiple contracts are 

awarded under section 4103(d)(1)(B) or 4105(f) of this title, all 

contractors awarded the contracts shall be provided a fair opportunity to be considered, pursuant to procedures set forth in the 

contracts, for each task or delivery order in excess of $2,500 that 

is to be issued under any of the contracts, unless— 

(1) the executive agency’s need for the services or property 

ordered is of such unusual urgency that providing the opportunity to all of those contractors would result in unacceptable 

delays in fulfilling that need; 

(2) only one of those contractors is capable of providing the 

services or property required at the level of quality required 

because the services or property ordered are unique or highly 

specialized; 

(3) the task or delivery order should be issued on a solesource basis in the interest of economy and efficiency because 

it is a logical follow-on to a task or delivery order already 

issued on a competitive basis; or 

(4) it is necessary to place the order with a particular contractor to satisfy a minimum guarantee. 

(d) ENHANCED COMPETITION FOR ORDERS IN EXCESS OF

$5,000,000.—In the case of a task or delivery order in excess of 

$5,000,000, the requirement to provide all contractors a fair opportunity to be considered under subsection (c) is not met unless 

all such contractors are provided, at a minimum— 
H. R. 1107—107 

(1) a notice of the task or delivery order that includes a 

clear statement of the executive agency’s requirements; 

(2) a reasonable period of time to provide a proposal in 

response to the notice; 

(3) disclosure of the significant factors and subfactors, 

including cost or price, that the executive agency expects to 

consider in evaluating such proposals, and their relative importance; 

(4) in the case of an award that is to be made on a best 

value basis, a written statement documenting— 

(A) the basis for the award; and 

(B) the relative importance of quality and price or cost 

factors; and 

(5) an opportunity for a post-award debriefing consistent 

with the requirements of section 3704 of this title. 

(e) STATEMENT OF WORK.—A task or delivery order shall include 

a statement of work that clearly specifies all tasks to be performed 

or property to be delivered under the order. 

(f) PROTESTS.— 

(1) PROTEST NOT AUTHORIZED.—A protest is not authorized 

in connection with the issuance or proposed issuance of a task 

or delivery order except for— 

(A) a protest on the ground that the order increases 

the scope, period, or maximum value of the contract under 

which the order is issued; or 

(B) a protest of an order valued in excess of $10,000,000. 

(2) JURISDICTION OVER PROTESTS.—Notwithstanding section 

3556 of title 31, the Comptroller General shall have exclusive 

jurisdiction of a protest authorized under paragraph (1)(B). 

(3) EFFECTIVE PERIOD.—This subsection shall be in effect 

for three years, beginning on the date that is 120 days after 

January 28, 2008. 

(g) TASK AND DELIVERY ORDER OMBUDSMAN.— (1) APPOINTMENT OR DESIGNATION AND RESPONSIBILITIES.— The head of each executive agency who awards multiple task 

or delivery order contracts under section 4103(d)(1)(B) or 4105(f) 

of this title shall appoint or designate a task and delivery 

order ombudsman who shall be responsible for reviewing complaints from the contractors on those contracts and ensuring 

that all of the contractors are afforded a fair opportunity to 

be considered for task or delivery orders when required under 

subsection (c). 

(2) WHO IS ELIGIBLE.—The task and delivery order ombudsman shall be a senior agency official who is independent of 

the contracting officer for the contracts and may be the executive agency’s advocate for competition. 

CHAPTER 43—ALLOWABLE COSTS 

Sec. 

4301. Definitions. 

4302. Adjustment of threshold amount of covered contract. 

4303. Effect of submission of unallowable costs. 

4304. Specific costs not allowable. 

4305. Required regulations. 

4306. Applicability of regulations to subcontractors. 

4307. Contractor certification. 

4308. Penalties for submission of cost known to be unallowable. 

4309. Burden of proof on contractor. 

4310. Proceeding costs not allowable. 
H. R. 1107—108 

§ 4301. Definitions 

In this chapter: 

(1) COMPENSATION.—The term ‘‘compensation’’, for a fiscal 

year, means the total amount of wages, salary, bonuses, and 

deferred compensation for the fiscal year, whether paid, earned, 

or otherwise accruing, as recorded in an employer’s cost 

accounting records for the fiscal year. 

(2) COVERED CONTRACT.—The term ‘‘covered contract’’ means 

a contract for an amount in excess of $500,000 that is entered 

into by an executive agency, except that the term does not 

include a fixed-price contract without cost incentives or any 

firm fixed-price contract for the purchase of commercial items. 

(3) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year 

established by a contractor for accounting purposes. 

(4) SENIOR EXECUTIVE.—The term ‘‘senior executive’’, with 

respect to a contractor, means the 5 most highly compensated 

employees in management positions at each home office and 

each segment of the contractor. 

§ 4302. Adjustment of threshold amount of covered contract 

Effective on October 1 of each year that is divisible by 5, the 

amount set forth in section 4301(2) of this title shall be adjusted 

to the equivalent amount in constant fiscal year 1994 dollars. An 

adjusted amount that is not evenly divisible by $50,000 shall be 

rounded to the nearest multiple of $50,000. If an amount is evenly 

divisible by $25,000 but is not evenly divisible by $50,000, the 

amount shall be rounded to the next higher multiple of $50,000. 

§ 4303. Effect of submission of unallowable costs 

(a) INDIRECT COST THAT VIOLATES FEDERAL ACQUISITION REGULATION COST PRINCIPLE.—An executive agency shall require that a 

covered contract provide that if the contractor submits to the executive agency a proposal for settlement of indirect costs incurred 

by the contractor for any period after those costs have been accrued 

and if that proposal includes the submission of a cost that is 

unallowable because the cost violates a cost principle in the Federal 

Acquisition Regulation or an executive agency supplement to the 

Federal Acquisition Regulation, the cost shall be disallowed. 

(b) PENALTY FOR VIOLATION OF COST PRINCIPLE.— 

(1) UNALLOWABLE COST IN PROPOSAL.—If the executive agency 

determines that a cost submitted by a contractor in its proposal 

for settlement is expressly unallowable under a cost principle 

referred to in subsection (a) that defines the allowability of 

specific selected costs, the executive agency shall assess a penalty against the contractor in an amount equal to— 

(A) the amount of the disallowed cost allocated to covered 

contracts for which a proposal for settlement of indirect 

costs has been submitted; plus 

(B) interest (to be computed based on provisions in the 

Federal Acquisition Regulation) to compensate the Federal 

Government for the use of the amount which a contractor 

has been paid in excess of the amount to which the contractor was entitled. 

(2) COST DETERMINED TO BE UNALLOWABLE BEFORE PROPOSAL

SUBMITTED.—If the executive agency determines that a proposal 

for settlement of indirect costs submitted by a contractor 

includes a cost determined to be unallowable in the case of 
H. R. 1107—109 

that contractor before the submission of that proposal, the 

executive agency shall assess a penalty against the contractor 

in an amount equal to 2 times the amount of the disallowed 

cost allocated to covered contracts for which a proposal for 

settlement of indirect costs has been submitted. 

(c) WAIVER OF PENALTY.—The Federal Acquisition Regulation 

shall provide for a penalty under subsection (b) to be waived in 

the case of a contractor’s proposal for settlement of indirect costs 

when— 

(1) the contractor withdraws the proposal before the formal 

initiation of an audit of the proposal by the Federal Government 

and resubmits a revised proposal; 

(2) the amount of unallowable costs subject to the penalty 

is insignificant; or 

(3) the contractor demonstrates, to the contracting officer’s 

satisfaction, that— 

(A) it has established appropriate policies and personnel 

training and an internal control and review system that 

provide assurances that unallowable costs subject to penalties are precluded from being included in the contractor’s 

proposal for settlement of indirect costs; and 

(B) the unallowable costs subject to the penalty were 

inadvertently incorporated into the proposal. 

(d) APPLICABILITY OF CONTRACT DISPUTES PROCEDURE.—An action 

of an executive agency under subsection (a) or (b)— 

(1) shall be considered a final decision for the purposes of 

section 7103 of this title; and 

(2) is appealable in the manner provided in section 7104(a) 

of this title. 

§ 4304. Specific costs not allowable 

(a) SPECIFIC COSTS.—The following costs are not allowable under 

a covered contract: 

(1) Costs of entertainment, including amusement, diversion, 

and social activities, and any costs directly associated with 

those costs (such as tickets to shows or sports events, meals, 

lodging, rentals, transportation, and gratuities). 

(2) Costs incurred to influence (directly or indirectly) legislative action on any matter pending before Congress, a State 

legislature, or a legislative body of a political subdivision of 

a State. 

(3) Costs incurred in defense of any civil or criminal fraud 

proceeding or similar proceeding (including filing of any false 

certification) brought by the Federal Government where the 

contractor is found liable or had pleaded nolo contendere to 

a charge of fraud or similar proceeding (including filing of 

a false certification). 

(4) Payments of fines and penalties resulting from violations 

of, or failure to comply with, Federal, State, local, or foreign 

laws and regulations, except when incurred as a result of 

compliance with specific terms and conditions of the contract 

or specific written instructions from the contracting officer 

authorizing in advance those payments in accordance with 

applicable provisions of the Federal Acquisition Regulation. 

(5) Costs of membership in any social, dining, or country 

club or organization. 

(6) Costs of alcoholic beverages. 

(7) Contributions or donations, regardless of the recipient. 
H. R. 1107—110 

(8) Costs of advertising designed to promote the contractor 

or its products. 

(9) Costs of promotional items and memorabilia, including 

models, gifts, and souvenirs. 

(10) Costs for travel by commercial aircraft that exceed the 

amount of the standard commercial fare. 

(11) Costs incurred in making any payment (commonly known 

as a ‘‘golden parachute payment’’) that is— 

(A) in an amount in excess of the normal severance 

pay paid by the contractor to an employee on termination 

of employment; and 

(B) paid to the employee contingent on, and following, 

a change in management control over, or ownership of, 

the contractor or a substantial portion of the contractor’s 

assets. 

(12) Costs of commercial insurance that protects against the 

costs of the contractor for correction of the contractor’s own 

defects in materials or workmanship. 

(13) Costs of severance pay paid by the contractor to foreign 

nationals employed by the contractor under a service contract 

performed outside the United States, to the extent that the 

amount of severance pay paid in any case exceeds the amount 

paid in the industry involved under the customary or prevailing 

practice for firms in that industry providing similar services 

in the United States, as determined under the Federal Acquisition Regulation. 

(14) Costs of severance pay paid by the contractor to a foreign 

national employed by the contractor under a service contract 

performed in a foreign country if the termination of the employment of the foreign national is the result of the closing of, 

or the curtailment of activities at, a Federal Government facility 

in that country at the request of the government of that country. 

(15) Costs incurred by a contractor in connection with any 

criminal, civil, or administrative proceeding commenced by the 

Federal Government or a State, to the extent provided in section 

4310 of this title. 

(16) Costs of compensation of senior executives of contractors 

for a fiscal year, regardless of the contract funding source, 

to the extent that the compensation exceeds the benchmark 

compensation amount determined applicable for the fiscal year 

by the Administrator under section 1127 of this title. 

(b) WAIVER OF SEVERANCE PAY RESTRICTIONS FOR FOREIGN

NATIONALS.— 

(1) EXECUTIVE AGENCY DETERMINATION.—Pursuant to the 

Federal Acquisition Regulation and subject to the availability 

of appropriations, an executive agency, in awarding a covered 

contract, may waive the application of paragraphs (13) and 

(14) of subsection (a) to that contract if the executive agency 

determines that— 

(A) the application of those provisions to that contract 

would adversely affect the continuation of a program, 

project, or activity that provides significant support services 

for employees of the executive agency posted outside the 

United States; 

(B) the contractor has taken (or has established plans 

to take) appropriate actions within the contractor’s control 

to minimize the amount and number of incidents of the 
H. R. 1107—111 

payment of severance pay by the contractor to employees 

under the contract who are foreign nationals; and 

(C) the payment of severance pay is necessary to comply 

with a law that is generally applicable to a significant 

number of businesses in the country in which the foreign 

national receiving the payment performed services under 

the contract or is necessary to comply with a collective 

bargaining agreement. 

(2) SOLICITATION TO INCLUDE STATEMENT ABOUT WAIVER.— An executive agency shall include in the solicitation for a covered contract a statement indicating— 

(A) that a waiver has been granted under paragraph 

(1) for the contract; or 

(B) whether the executive agency will consider granting 

a waiver and, if the executive agency will consider granting 

a waiver, the criteria to be used in granting the waiver. 

(3) DETERMINATION TO BE MADE BEFORE CONTRACT

AWARDED.—An executive agency shall make the final determination whether to grant a waiver under paragraph (1) with 

respect to a covered contract before award of the contract. 

(c) ESTABLISHMENT OF DEFINITIONS, EXCLUSIONS, LIMITATIONS, AND QUALIFICATIONS.—The provisions of the Federal Acquisition 

Regulation implementing this chapter may establish appropriate 

definitions, exclusions, limitations, and qualifications. A submission 

by a contractor of costs that are incurred by the contractor and 

that are claimed to be allowable under Department of Energy 

management and operating contracts shall be considered a proposal 

for settlement of indirect costs incurred by the contractor for any 

period after those costs have been accrued. 

§ 4305. Required regulations 

(a) IN GENERAL.—The Federal Acquisition Regulation shall contain provisions on the allowability of contractor costs. Those provisions shall define in detail and in specific terms the costs that 

are unallowable, in whole or in part, under covered contracts. 

(b) SPECIFIC ITEMS.—The regulations shall, at a minimum, clarify 

the cost principles applicable to contractor costs of the following: 

(1) Air shows. 

(2) Membership in civic, community, and professional 

organizations. 

(3) Recruitment. 

(4) Employee morale and welfare. 

(5) Actions to influence (directly or indirectly) executive 

branch action on regulatory and contract matters (other than 

costs incurred in regard to contract proposals pursuant to solicited or unsolicited bids). 

(6) Community relations. 

(7) Dining facilities. 

(8) Professional and consulting services, including legal services. 

(9) Compensation. 

(10) Selling and marketing. 

(11) Travel. 

(12) Public relations. 

(13) Hotel and meal expenses. 

(14) Expense of corporate aircraft. 

(15) Company-furnished automobiles. 

(16) Advertising. 
H. R. 1107—112 

(17) Conventions. 

(c) ADDITIONAL REQUIREMENTS.— 

(1) WHEN QUESTIONED COSTS MAY BE RESOLVED.—The Federal 

Acquisition Regulation shall require that a contracting officer 

not resolve any questioned costs until the contracting officer 

has obtained— 

(A) adequate documentation of those costs; and 

(B) the opinion of the contract auditor on the allowability 

of those costs. 

(2) PRESENCE OF CONTRACT AUDITOR.—The Federal Acquisition Regulation shall provide that, to the maximum extent 

practicable, a contract auditor be present at any negotiation 

or meeting with the contractor regarding a determination of 

the allowability of indirect costs of the contractor. 

(3) SETTLEMENT TO REFLECT AMOUNT OF INDIVIDUAL QUESTIONED COSTS.—The Federal Acquisition Regulation shall 

require that all categories of costs designated in the report 

of a contract auditor as questioned with respect to a proposal 

for settlement be resolved in a manner so that the amount 

of the individual questioned costs that are paid will be reflected 

in the settlement. 

§ 4306. Applicability of regulations to subcontractors 

The regulations referred to in sections 4304 and 4305(a) and 

(b) of this title shall require prime contractors of a covered contract, 

to the maximum extent practicable, to apply the provisions of 

those regulations to all subcontractors of the covered contract. 

§ 4307. Contractor certification 

(a) CONTENT AND FORM.—A proposal for settlement of indirect 

costs applicable to a covered contract shall include a certification 

by an official of the contractor that, to the best of the certifying 

official’s knowledge and belief, all indirect costs included in the 

proposal are allowable. The certification shall be in a form prescribed in the Federal Acquisition Regulation. 

(b) WAIVER.—An executive agency may, in an exceptional case, 

waive the requirement for certification under subsection (a) in the 

case of a contract if the agency— 

(1) determines that it would be in the interest of the Federal 

Government to waive the certification; and 

(2) states in writing the reasons for the determination and 

makes the determination available to the public. 

§ 4308. Penalties for submission of cost known to be unallowable 

The submission to an executive agency of a proposal for settlement of costs for any period after those costs have been accrued 

that includes a cost that is expressly specified by statute or regulation as being unallowable, with the knowledge that the cost is 

unallowable, is subject to section 287 of title 18 and section 3729 

of title 31. 

§ 4309. Burden of proof on contractor 

In a proceeding before a board of contract appeals, the United 

States Court of Federal Claims, or any other Federal court in 

which the reasonableness of indirect costs for which a contractor 

seeks reimbursement from the Federal Government is in issue, 
H. R. 1107—113 

the burden of proof is on the contractor to establish that those 

costs are reasonable. 

§ 4310. Proceeding costs not allowable 

(a) DEFINITIONS.—In this section: 

(1) COSTS.—The term ‘‘costs’’, with respect to a proceeding, 

means all costs incurred by a contractor, whether before or 

after the commencement of the proceeding, including— 

(A) administrative and clerical expenses; 

(B) the cost of legal services, including legal services 

performed by an employee of the contractor; 

(C) the cost of the services of accountants and consultants 

retained by the contractor; and 

(D) the pay of directors, officers, and employees of the 

contractor for time devoted by those directors, officers, and 

employees to the proceeding. 

(2) PENALTY.—The term ‘‘penalty’’ does not include restitution, reimbursement, or compensatory damages. 

(3) PROCEEDING.—The term ‘‘proceeding’’ includes an investigation. 

(b) IN GENERAL.—Except as otherwise provided in this section, 

costs incurred by a contractor in connection with a criminal, civil, 

or administrative proceeding commenced by the Federal Government or a State are not allowable as reimbursable costs under 

a covered contract if the proceeding— 

(1) relates to a violation of, or failure to comply with, a 

Federal or State statute or regulation; and 

(2) results in a disposition described in subsection (c). 

(c) COVERED DISPOSITIONS.—A disposition referred to in subsection (b)(2) is any of the following: 

(1) In a criminal proceeding, a conviction (including a conviction pursuant to a plea of nolo contendere) by reason of the 

violation or failure referred to in subsection (b). 

(2) In a civil or administrative proceeding involving an allegation of fraud or similar misconduct, a determination of contractor liability on the basis of the violation or failure referred 

to in subsection (b). 

(3) In any civil or administrative proceeding, the imposition 

of a monetary penalty by reason of the violation or failure 

referred to in subsection (b). 

(4) A final decision to do any of the following, by reason 

of the violation or failure referred to in subsection (b): 

(A) Debar or suspend the contractor. 

(B) Rescind or void the contract. 

(C) Terminate the contract for default. 

(5) A disposition of the proceeding by consent or compromise 

if the disposition could have resulted in a disposition described 

in paragraph (1), (2), (3), or (4). 

(d) COSTS ALLOWED BY SETTLEMENT AGREEMENT IN PROCEEDING

COMMENCED BY FEDERAL GOVERNMENT.—In the case of a proceeding 

referred to in subsection (b) that is commenced by the Federal 

Government and is resolved by consent or compromise pursuant 

to an agreement entered into by a contractor and the Federal 

Government, the costs incurred by the contractor in connection 

with the proceeding that are otherwise not allowable as reimbursable costs under subsection (b) may be allowed to the extent specifically provided in that agreement. 
H. R. 1107—114 

(e) COSTS SPECIFICALLY AUTHORIZED BY EXECUTIVE AGENCY IN

PROCEEDING COMMENCED BY STATE.—In the case of a proceeding 

referred to in subsection (b) that is commenced by a State, the 

executive agency that awarded the covered contract involved in 

the proceeding may allow the costs incurred by the contractor 

in connection with the proceeding as reimbursable costs if the 

executive agency determines, in accordance with the Federal 

Acquisition Regulation, that the costs were incurred as a result 

of— 

(1) a specific term or condition of the contract; or 

(2) specific written instructions of the executive agency. 

(f) OTHER ALLOWABLE COSTS.— 

(1) IN GENERAL.—Except as provided in paragraph (3), costs 

incurred by a contractor in connection with a criminal, civil, 

or administrative proceeding commenced by the Federal 

Government or a State in connection with a covered contract 

may be allowed as reimbursable costs under the contract if 

the costs are not disallowable under subsection (b), but only 

to the extent provided in paragraph (2). 

(2) AMOUNT OF ALLOWABLE COSTS.— 

(A) MAXIMUM AMOUNT ALLOWED.—The amount of the 

costs allowable under paragraph (1) in any case may not 

exceed the amount equal to 80 percent of the amount 

of the costs incurred, to the extent that the costs are 

determined to be otherwise allowable and allocable under 

the Federal Acquisition Regulation. 

(B) CONTENT OF REGULATIONS.—Regulations issued for 

the purpose of subparagraph (A) shall provide for appropriate consideration of the complexity of procurement litigation, generally accepted principles governing the award 

of legal fees in civil actions involving the Federal Government as a party, and other factors as may be appropriate. 

(3) WHEN OTHERWISE ALLOWABLE COSTS ARE NOT ALLOW- ABLE.—In the case of a proceeding referred to in paragraph 

(1), contractor costs otherwise allowable as reimbursable costs 

under this subsection are not allowable if— 

(A) the proceeding involves the same contractor misconduct alleged as the basis of another criminal, civil, 

or administrative proceeding; and 

(B) the costs of the other proceeding are not allowable 

under subsection (b). 

CHAPTER 45—CONTRACT FINANCING 

Sec. 

4501. Authority of executive agency. 

4502. Payment. 

4503. Security for advance payments. 

4504. Conditions for progress payments. 

4505. Payments for commercial items. 

4506. Action in case of fraud. 

§ 4501. Authority of executive agency 

An executive agency may— 

(1) make advance, partial, progress or other payments under 

contracts for property or services made by the agency; and 

(2) insert in solicitations for procurement of property or services a provision limiting to small business concerns advance 

or progress payments. 
H. R. 1107—115 

§ 4502. Payment 

(a) BASIS FOR PAYMENT.—When practicable, payments under section 4501 of this title shall be made on any of the following bases: 

(1) Performance measured by objective, quantifiable methods 

such as delivery of acceptable items, work measurement, or 

statistical process controls. 

(2) Accomplishment of events defined in the program management plan. 

(3) Other quantifiable measures of results. 

(b) PAYMENT AMOUNT.—Payments made under section 4501 of 

this title may not exceed the unpaid contract price. 

§ 4503. Security for advance payments 

Advance payments under section 4501 of this title may be made 

only on adequate security and a determination by the agency head 

that to do so would be in the public interest. The security may 

be in the form of a lien in favor of the Federal Government on 

the property contracted for, on the balance in an account in which 

the payments are deposited, and on such of the property acquired 

for performance of the contract as the parties may agree. This 

lien shall be paramount to all other liens and is effective immediately upon the first advancement of funds without filing, notice, 

or any other action by the Federal Government. 

§ 4504. Conditions for progress payments 

(a) PAYMENT COMMENSURATE WITH WORK.—The executive agency 

shall ensure that a payment for work in progress (including materials, labor, and other items) under a contract of an executive 

agency that provides for those payments is commensurate with 

the work accomplished that meets standards established under 

the contract. The contractor shall provide information and evidence 

the executive agency determines is necessary to permit the executive 

agency to carry out this subsection. 

(b) LIMITATION.—The executive agency shall ensure that progress 

payments referred to in subsection (a) are not made for more 

than 80 percent of the work accomplished under the contract as 

long as the executive agency has not made the contractual terms, 

specifications, and price definite. 

(c) APPLICATION.—This section applies to a contract in an amount greater than $25,000. 

§ 4505. Payments for commercial items 

(a) TERMS AND CONDITIONS FOR PAYMENTS.—Payments under 

section 4501 of this title for commercial items may be made under 

terms and conditions that the head of the executive agency determines are appropriate or customary in the commercial marketplace 

and are in the best interests of the Federal Government. 

(b) SECURITY FOR PAYMENTS.—The head of the executive agency 

shall obtain adequate security for the payments. If the security 

is in the form of a lien in favor of the Federal Government, the 

lien is paramount to all other liens and is effective immediately 

on the first payment, without filing, notice, or other action by 

the Federal Government. 

(c) LIMITATION ON ADVANCE PAYMENTS.—Advance payments made 

under section 4501 of this title for commercial items may include 

payments, in a total amount not more than 15 percent of the 

contract price, in advance of any performance of work under the 

contract. 
H. R. 1107—116 

(d) NONAPPLICATION OF CERTAIN CONDITIONS.—The conditions 

of sections 4503 and 4504 of this title need not be applied if 

they would be inconsistent, as determined by the head of the 

executive agency, with commercial terms and conditions pursuant 

to this section. 

§ 4506. Action in case of fraud 

(a) DEFINITION.—In this section, the term ‘‘remedy coordination 

official’’, with respect to an executive agency, means the individual 

or entity in that executive agency who coordinates within that 

executive agency the administration of criminal, civil, administrative, and contractual remedies resulting from investigations of fraud 

or corruption related to procurement activities. 

(b) RECOMMENDATION TO REDUCE OR SUSPEND PAYMENTS.—In 

any case in which the remedy coordination official of an executive 

agency finds that there is substantial evidence that the request 

of a contractor for advance, partial, or progress payment under 

a contract awarded by that executive agency is based on fraud, 

the remedy coordination official shall recommend that the executive 

agency reduce or suspend further payments to that contractor. 

(c) REDUCTION OR SUSPENSION OF PAYMENTS.—The head of an 

executive agency receiving a recommendation under subsection (b) 

in the case of a contractor’s request for payment under a contract 

shall determine whether there is substantial evidence that the 

request is based on fraud. On making an affirmative determination, 

the head of the executive agency may reduce or suspend further 

payments to the contractor under the contract. 

(d) EXTENT OF REDUCTION OR SUSPENSION.—The extent of any 

reduction or suspension of payments by an executive agency under 

subsection (c) on the basis of fraud shall be reasonably commensurate with the anticipated loss to the Federal Government resulting 

from the fraud. 

(e) WRITTEN JUSTIFICATION.—A written justification for each decision of the head of an executive agency whether to reduce or 

suspend payments under subsection (c), and for each recommendation received by the executive agency in connection with the decision, shall be prepared and be retained in the files of the executive 

agency. 

(f) NOTICE.—The head of each executive agency shall prescribe 

procedures to ensure that, before the head of the executive agency 

decides to reduce or suspend payments in the case of a contractor 

under subsection (c), the contractor is afforded notice of the proposed 

reduction or suspension and an opportunity to submit matters 

to the executive agency in response to the proposed reduction or 

suspension. 

(g) REVIEW.—Not later than 180 days after the date on which 

the head of an executive agency reduces or suspends payments 

to a contractor under subsection (c), the remedy coordination official 

of the executive agency shall— 

(1) review the determination of fraud on which the reduction 

or suspension is based; and 

(2) transmit a recommendation to the head of the executive 

agency whether the suspension or reduction should continue. 

(h) REPORT.—The head of each executive agency who receives 

recommendations made by the remedy coordination official of the 

executive agency to reduce or suspend payments under subsection 

(c) during a fiscal year shall prepare for that year a report that 
H. R. 1107—117 

contains the recommendations, the actions taken on the recommendations and the reasons for those actions, and an assessment 

of the effects of those actions on the Federal Government. The 

report shall be available to any Member of Congress on request. 

(i) RESTRICTION ON DELEGATION.—The head of an executive 

agency may not delegate responsibilities under this section to an 

individual in a position below level IV of the Executive Schedule. 

CHAPTER 47—MISCELLANEOUS 

Sec. 

4701. Determinations and decisions. 

4702. Prohibition on release of contractor proposals. 

4703. Validation of proprietary data restrictions. 

4704. Prohibition of contractors limiting subcontractor sales directly to Federal 

Government. 

4705. Protection of contractor employees from reprisal for disclosure of certain information. 

4706. Examination of facilities and records of contractor. 

4707. Remission of liquidated damages. 

4708. Payment of reimbursable indirect costs in cost-type research and development contracts with educational institutions. 

4709. Implementation of electronic commerce capability. 

4710. Limitations on tiering of subcontractors. 

4711. Linking of award and incentive fees to acquisition outcomes. 

§ 4701. Determinations and decisions 

(a) INDIVIDUAL OR CLASS DETERMINATIONS AND DECISIONS

AUTHORIZED.— 

(1) IN GENERAL.—Determinations and decisions required to 

be made under this division by the head of an executive agency 

or provided in this division or chapters 1 to 11 of title 40 

to be made by the Administrator of General Services or other 

agency head may be made for an individual purchase or contract or, except for determinations or decisions made under 

sections 3105, 3301, 3303 to 3305, 3306(a)–(e), and 3308, 

chapter 37, and section 4702 of this title or to the extent 

expressly prohibited by another law, for a class of purchases 

or contracts. 

(2) DELEGATION.—Except as provided in section 3304(a)(7) 

of this title, and except as provided in section 121(d)(1) and 

(2) of title 40 with respect to the Administrator of General 

Services, the agency head, in the discretion and subject to 

the direction of the agency head, may delegate powers provided 

by this division or chapters 1 to 11 of title 40, including the 

making of determinations and decisions described in paragraph 

(1), to other officers or officials of the agency. 

(3) FINALITY.—The determinations and decisions are final. 

(b) WRITTEN FINDINGS.— 

(1) BASIS FOR CERTAIN DETERMINATIONS.—Each determination or decision under section 3901, 3905, 4503, or 4706(d)(2)(B) 

of this title shall be based on a written finding by the individual 

making the determination or decision. A finding under section 

4503 or 4706(d)(2)(B) shall set out facts and circumstances 

that support the determination or decision. 

(2) FINALITY.—Each finding referred to in paragraph (1) is 

final. 

(3) MAINTAINING COPIES OF FINDINGS.—The head of an executive agency shall maintain for a period of not less than 6 

years a copy of each finding referred to in paragraph (1) that 

is made by an individual in that executive agency. The period 
H. R. 1107—118 

begins on the date of the determination or decision to which 

the finding relates. 

§ 4702. Prohibition on release of contractor proposals 

(a) DEFINITION.—In this section, the term ‘‘proposal’’ means a 

proposal, including a technical, management, or cost proposal, submitted by a contractor in response to the requirements of a solicitation for a competitive proposal. 

(b) PROHIBITION.—A proposal in the possession or control of an 

executive agency may not be made available to any person under 

section 552 of title 5. 

(c) NONAPPLICATION.—Subsection (b) does not apply to a proposal 

that is set forth or incorporated by reference in a contract entered 

into between the agency and the contractor that submitted the 

proposal. 

§ 4703. Validation of proprietary data restrictions 

(a) CONTRACT THAT PROVIDES FOR DELIVERY OF TECHNICAL

DATA.—A contract for property or services entered into by an executive agency that provides for the delivery of technical data shall 

provide that— 

(1) a contractor or subcontractor at any tier shall be prepared 

to furnish to the contracting officer a written justification for 

any restriction the contractor or subcontractor asserts on the 

right of the Federal Government to use the data; and 

(2) the contracting officer may review the validity of a restriction the contractor or subcontractor asserts under the contract 

on the right of the Federal Government to use technical data 

furnished to the Federal Government under the contract if 

the contracting officer determines that reasonable grounds exist 

to question the current validity of the asserted restriction and 

that the continued adherence to the asserted restriction by 

the Federal Government would make it impracticable to procure 

the item competitively at a later time. 

(b) CHALLENGE OF RESTRICTION.—If after a review the contracting 

officer determines that a challenge to the asserted restriction is 

warranted, the contracting officer shall provide written notice to 

the contractor or subcontractor asserting the restriction. The notice 

shall state— 

(1) the grounds for challenging the asserted restriction; and 

(2) the requirement for a response within 60 days justifying 

the current validity of the asserted restriction. 

(c) ADDITIONAL TIME FOR RESPONSES.—If a contractor or subcontractor asserting a restriction subject to this section submits to 

the contracting officer a written request showing the need for additional time to comply with the requirement to justify the current 

validity of the asserted restriction, the contracting officer shall 

provide appropriate additional time to adequately permit the justification to be submitted. 

(d) MULTIPLE CHALLENGES.—If a party asserting a restriction 

receives notices of challenges to restrictions on technical data from 

more than one contracting officer, and notifies each contracting 

officer of the existence of more than one challenge, the contracting 

officer initiating the earliest challenge, after consultation with the 

party asserting the restriction and the other contracting officers, 

shall formulate a schedule of responses to each of the challenges 

that will afford the party asserting the restriction with an equitable 

opportunity to respond to each challenge. 
H. R. 1107—119 

(e) DECISION ON VALIDITY OF ASSERTED RESTRICTION.— (1) NO RESPONSE SUBMITTED.—The contracting officer shall 

issue a decision pertaining to the validity of the asserted restriction if the contractor or subcontractor does not submit a 

response under subsection (b). 

(2) RESPONSE SUBMITTED.—Within 60 days of receipt of a 

justification submitted in response to the notice provided pursuant to subsection (b), a contracting officer shall issue a decision 

or notify the party asserting the restriction of the time within 

which a decision will be issued. 

(f) CLAIM DEEMED CLAIM WITHIN CHAPTER 71.—A claim pertaining to the validity of the asserted restriction that is submitted 

in writing to a contracting officer by a contractor or subcontractor 

at any tier is deemed to be a claim within the meaning of chapter 

71 of this title. 

(g) FINAL DISPOSITION OF CHALLENGE.— (1) CHALLENGE IS SUSTAINED.—If the contracting officer’s 

challenge to the restriction on the right of the Federal Government to use technical data is sustained on final disposition— 

(A) the restriction is cancelled; and 

(B) if the asserted restriction is found not to be substantially justified, the contractor or subcontractor, as appropriate, is liable to the Federal Government for payment 

of the cost to the Federal Government of reviewing the 

asserted restriction and the fees and other expenses (as 

defined in section 2412(d)(2)(A) of title 28) incurred by 

the Federal Government in challenging the asserted restriction, unless special circumstances would make the payment 

unjust. 

(2) CHALLENGE NOT SUSTAINED.—If the contracting officer’s 

challenge to the restriction on the right of the Federal Government to use technical data is not sustained on final disposition, 

the Federal Government— 

(A) continues to be bound by the restriction; and 

(B) is liable for payment to the party asserting the restriction for fees and other expenses (as defined in section 

2412(d)(2)(A) of title 28) incurred by the party asserting 

the restriction in defending the asserted restriction if the 

challenge by the Federal Government is found not to be 

made in good faith. 

§ 4704. Prohibition of contractors limiting subcontractor 

sales directly to Federal Government 

(a) CONTRACT RESTRICTIONS.—Each contract for the purchase 

of property or services made by an executive agency shall provide 

that the contractor will not— 

(1) enter into an agreement with a subcontractor under the 

contract that has the effect of unreasonably restricting sales 

by the subcontractor directly to the Federal Government of 

any item or process (including computer software) made or 

furnished by the subcontractor under the contract (or any follow-on production contract); or 

(2) otherwise act to restrict unreasonably the ability of a 

subcontractor to make sales described in paragraph (1) to the 

Federal Government. 

(b) RIGHTS UNDER LAW PRESERVED.—This section does not prohibit a contractor from asserting rights it otherwise has under 

law. 
H. R. 1107—120 

(c) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does 

not apply to a contract for an amount that is not greater than 

the simplified acquisition threshold. 

(d) INAPPLICABILITY WHEN GOVERNMENT TREATED SIMILARLY TO

OTHER PURCHASERS.—An agreement between the contractor in a 

contract for the acquisition of commercial items and a subcontractor 

under the contract that restricts sales by the subcontractor directly 

to persons other than the contractor may not be considered to 

unreasonably restrict sales by that subcontractor to the Federal 

Government in violation of the provision included in the contract 

pursuant to subsection (a) if the agreement does not result in 

the Federal Government being treated differently with regard to 

the restriction than any other prospective purchaser of the commercial items from that subcontractor. 

§ 4705. Protection of contractor employees from reprisal for 

disclosure of certain information 

(a) DEFINITIONS.—In this section: 

(1) CONTRACT.—The term ‘‘contract’’ means a contract 

awarded by the head of an executive agency. 

(2) CONTRACTOR.—The term ‘‘contractor’’ means a person 

awarded a contract with an executive agency. 

(3) INSPECTOR GENERAL.—The term ‘‘Inspector General’’ 

means an Inspector General appointed under the Inspector 

General Act of 1978 (5 U.S.C. App.). 

(b) PROHIBITION OF REPRISALS.—An employee of a contractor may 

not be discharged, demoted, or otherwise discriminated against 

as a reprisal for disclosing to a Member of Congress or an authorized 

official of an executive agency or the Department of Justice information relating to a substantial violation of law related to a contract 

(including the competition for, or negotiation of, a contract). 

(c) INVESTIGATION OF COMPLAINTS.—An individual who believes 

that the individual has been subjected to a reprisal prohibited 

by subsection (b) may submit a complaint to the Inspector General 

of the executive agency. Unless the Inspector General determines 

that the complaint is frivolous, the Inspector General shall investigate the complaint and, on completion of the investigation, submit 

a report of the findings of the investigation to the individual, 

the contractor concerned, and the head of the agency. If the executive agency does not have an Inspector General, the duties of 

the Inspector General under this section shall be performed by 

an official designated by the head of the executive agency. 

(d) REMEDY AND ENFORCEMENT AUTHORITY.— 

(1) ACTIONS CONTRACTOR MAY BE ORDERED TO TAKE.—If the 

head of an executive agency determines that a contractor has 

subjected an individual to a reprisal prohibited by subsection 

(b), the head of the executive agency may take one or more 

of the following actions: 

(A) ABATEMENT.—Order the contractor to take affirmative action to abate the reprisal. 

(B) REINSTATEMENT.—Order the contractor to reinstate 

the individual to the position that the individual held before 

the reprisal, together with the compensation (including 

back pay), employment benefits, and other terms and conditions of employment that would apply to the individual 

in that position if the reprisal had not been taken. 

(C) PAYMENT.—Order the contractor to pay the complainant an amount equal to the aggregate amount of all costs 
H. R. 1107—121 

and expenses (including attorneys’ fees and expert witnesses’ fees) that the complainant reasonably incurred for, 

or in connection with, bringing the complaint regarding 

the reprisal, as determined by the head of the executive 

agency. 

(2) ENFORCEMENT ORDER.—When a contractor fails to comply 

with an order issued under paragraph (1), the head of the 

executive agency shall file an action for enforcement of the 

order in the United States district court for a district in which 

the reprisal was found to have occurred. In an action brought 

under this paragraph, the court may grant appropriate relief, 

including injunctive relief and compensatory and exemplary 

damages. 

(3) REVIEW OF ENFORCEMENT ORDER.—A person adversely 

affected or aggrieved by an order issued under paragraph (1) 

may obtain review of the order’s conformance with this subsection, and regulations issued to carry out this section, in 

the United States court of appeals for a circuit in which the 

reprisal is alleged in the order to have occurred. A petition 

seeking review must be filed no more than 60 days after the 

head of the agency issues the order. Review shall conform 

to chapter 7 of title 5. 

(e) SCOPE OF SECTION.—This section does not— 

(1) authorize the discharge of, demotion of, or discrimination 

against an employee for a disclosure other than a disclosure 

protected by subsection (b); or 

(2) modify or derogate from a right or remedy otherwise 

available to the employee. 

§ 4706. Examination of facilities and records of contractor 

(a) DEFINITION.—In this section, the term ‘‘records’’ includes 

books, documents, accounting procedures and practices, and other 

data, regardless of type and regardless of whether the items are 

in written form, in the form of computer data, or in any other 

form. 

(b) AGENCY AUTHORITY.— (1) INSPECTION OF PLANT AND AUDIT OF RECORDS.—The head 

of an executive agency, acting through an authorized representative, may inspect the plant and audit the records of— 

(A) a contractor performing a cost-reimbursement, incentive, time-and-materials, labor-hour, or price-redeterminable contract, or any combination of those contracts, 

the executive agency makes under this division; and 

(B) a subcontractor performing a cost-reimbursement, 

incentive, time-and-materials, labor-hour, or price-redeterminable subcontract, or any combination of those subcontracts, under a contract referred to in subparagraph 

(A). 

(2) EXAMINATION OF RECORDS.—The head of an executive 

agency, acting through an authorized representative, may, for 

the purpose of evaluating the accuracy, completeness, and currency of certified cost or pricing data required to be submitted 

pursuant to chapter 35 of this title with respect to a contract 

or subcontract, examine all records of the contractor or subcontractor related to— 

(A) the proposal for the contract or subcontract; 

(B) the discussions conducted on the proposal; 

(C) pricing of the contract or subcontract; or 
H. R. 1107—122 

(D) performance of the contract or subcontract. 

(c) SUBPOENA POWER.— 

(1) AUTHORITY TO REQUIRE THE PRODUCTION OF RECORDS.— 

The Inspector General of an executive agency appointed under 

section 3 or 8G of the Inspector General Act of 1978 (5 U.S.C. 

App.) or, on request of the head of an executive agency, the 

Director of the Defense Contract Audit Agency (or any successor 

agency) of the Department of Defense or the Inspector General 

of the General Services Administration may require by subpoena the production of records of a contractor, access to which 

is provided for that executive agency by subsection (b). 

(2) ENFORCEMENT OF SUBPOENA.—A subpoena under paragraph (1), in the case of contumacy or refusal to obey, is 

enforceable by order of an appropriate United States district 

court. 

(3) AUTHORITY NOT DELEGABLE.—The authority provided by 

paragraph (1) may not be delegated. 

(4) REPORT.—In the year following a year in which authority 

provided in paragraph (1) is exercised for an executive agency, 

the head of the executive agency shall submit to the Committee 

on Homeland Security and Governmental Affairs of the Senate 

and the Committee on Oversight and Government Reform of 

the House of Representatives a report on the exercise of the 

authority during the preceding year and the reasons why the 

authority was exercised in any instance. 

(d) AUTHORITY OF COMPTROLLER GENERAL.— 

(1) IN GENERAL.—Except as provided in paragraph (2), each 

contract awarded after using procedures other than sealed bid 

procedures shall provide that the Comptroller General and 

representatives of the Comptroller General may examine 

records of the contractor, or any of its subcontractors, that 

directly pertain to, and involve transactions relating to, the 

contract or subcontract and to interview any current employee 

regarding the transactions. 

(2) EXCEPTION FOR FOREIGN CONTRACTOR OR SUBCONTRACTOR.—Paragraph (1) does not apply to a contract or subcontract with a foreign contractor or foreign subcontractor if 

the executive agency concerned determines, with the concurrence of the Comptroller General or the designee of the Comptroller General, that applying paragraph (1) to the contract 

or subcontract would not be in the public interest. The concurrence of the Comptroller General or the designee is not required 

when— 

(A) the contractor or subcontractor is— 

(i) the government of a foreign country or an agency 

of that government; or 

(ii) precluded by the laws of the country involved 

from making its records available for examination; and 

(B) the executive agency determines, after taking into 

account the price and availability of the property and services from United States sources, that the public interest 

would be best served by not applying paragraph (1). 

(3) ADDITIONAL RECORDS NOT REQUIRED.—Paragraph (1) does 

not require a contractor or subcontractor to create or maintain 

a record that the contractor or subcontractor does not maintain 

in the ordinary course of business or pursuant to another 

law. 
H. R. 1107—123 

(e) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.—An 

executive agency may not perform an audit of indirect costs under 

a contract, subcontract, or modification before or after entering 

into the contract, subcontract, or modification when the contracting 

officer determines that the objectives of the audit can reasonably 

be met by accepting the results of an audit that was conducted 

by another department or agency of the Federal Government within 

one year preceding the date of the contracting officer’s determination. 

(f) EXPIRATION OF AUTHORITY.—The authority of an executive 

agency under subsection (b) and the authority of the Comptroller 

General under subsection (d) shall expire 3 years after final payment under the contract or subcontract. 

(g) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does 

not apply to the following contracts: 

(1) Contracts for utility services at rates not exceeding those 

established to apply uniformly to the public, plus any applicable 

reasonable connection charge. 

(2) A contract or subcontract that is not greater than the 

simplified acquisition threshold. 

(h) ELECTRONIC FORM ALLOWED.—This section does not preclude 

a contractor from duplicating or storing original records in electronic 

form. 

(i) ORIGINAL RECORDS NOT REQUIRED.—An executive agency shall 

not require a contractor or subcontractor to provide original records 

in an audit carried out pursuant to this section if the contractor 

or subcontractor provides photographic or electronic images of the 

original records and meets the following requirements: 

(1) PRESERVATION PROCEDURES ESTABLISHED.—The contractor 

or subcontractor has established procedures to ensure that 

the imaging process preserves the integrity, reliability, and 

security of the original records. 

(2) INDEXING SYSTEM MAINTAINED.—The contractor or subcontractor maintains an effective indexing system to permit timely 

and convenient access to the imaged records. 

(3) ORIGINAL RECORDS RETAINED.—The contractor or subcontractor retains the original records for a minimum of one year 

after imaging to permit periodic validation of the imaging systems. 

§ 4707. Remission of liquidated damages 

When a contract made on behalf of the Federal Government 

by the head of a Federal agency, or by an authorized officer of 

the agency, includes a provision for liquidated damages for delay, 

the Secretary of the Treasury on recommendation of the head 

of the agency may remit any part of the damages as the Secretary 

of the Treasury believes is just and equitable. 

§ 4708. Payment of reimbursable indirect costs in cost-type 

research and development contracts with educational institutions 

A cost-type research and development contract (including a grant) 

with a university, college, or other educational institution may 

provide for payment of reimbursable indirect costs on the basis 

of predetermined fixed-percentage rates applied to the total of the 

reimbursable direct costs incurred or to an element of the total 

of the reimbursable direct costs incurred. 
H. R. 1107—124 

§ 4709. Implementation of electronic commerce capability 

(a) ROLE OF HEAD OF EXECUTIVE AGENCY.—The head of each 

executive agency shall implement the electronic commerce capability required by section 2301 of this title. In implementing the 

capability, the head of an executive agency shall consult with the 

Administrator. 

(b) PROGRAM MANAGER.—The head of each executive agency shall 

designate a program manager to implement the electronic commerce 

capability for the agency. The program manager reports directly 

to an official at a level not lower than the senior procurement 

executive designated for the agency under section 1702(c) of this 

title. 

§ 4710. Limitations on tiering of subcontractors 

(a) DEFINITION.—In this section, the term ‘‘executive agency’’ has 

the same meaning given in section 133 of this title. 

(b) REGULATIONS.—For executive agencies other than the Department of Defense, the Federal Acquisition Regulation shall— 

(1) require contractors to minimize the excessive use of subcontractors, or of tiers of subcontractors, that add no or negligible value; and 

(2) ensure that neither a contractor nor a subcontractor 

receives indirect costs or profit on work performed by a lowertier subcontractor to which the higher-tier contractor or subcontractor adds no or negligible value (but not to limit charges 

for indirect costs and profit based on the direct costs of managing lower-tier subcontracts). 

(c) COVERED CONTRACTS.—This section applies to any costreimbursement type contract or task or delivery order in an amount 

greater than the simplified acquisition threshold (as defined by 

section 134 of this title). 

(d) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed as limiting the ability of the Department of Defense 

to implement more restrictive limitations on the tiering of subcontractors. 

(e) APPLICABILITY.—The Department of Defense shall continue 

to be subject to guidance on limitations on tiering of subcontractors 

issued by the Department of Defense pursuant to section 852 of 

the John Warner National Defense Authorization Act for Fiscal 

Year 2007 (Public Law 109–364, 10 U.S.C. 2324 note). 

§ 4711. Linking of award and incentive fees to acquisition 

outcomes 

(a) DEFINITION.—In this section, the term ‘‘executive agency’’ has 

the same meaning given in section 133 of this title. 

(b) GUIDANCE FOR EXECUTIVE AGENCIES ON LINKING OF AWARD

AND INCENTIVE FEES TO ACQUISITION OUTCOMES.—The Federal 

Acquisition Regulation shall provide executive agencies other than 

the Department of Defense with instructions, including definitions, 

on the appropriate use of award and incentive fees in Federal 

acquisition programs. 

(c) ELEMENTS.—The regulations under subsection (b) shall— 

(1) ensure that all new contracts using award fees link the 

fees to acquisition outcomes (which shall be defined in terms 

of program cost, schedule, and performance); 
H. R. 1107—125 

(2) establish standards for identifying the appropriate level 

of officials authorized to approve the use of award and incentive 

fees in new contracts; 

(3) provide guidance on the circumstances in which contractor 

performance may be judged to be ‘‘excellent’’ or ‘‘superior’’ and 

the percentage of the available award fee which contractors 

should be paid for the performance; 

(4) establish standards for determining the percentage of 

the available award fee, if any, which contractors should be 

paid for performance that is judged to be ‘‘acceptable’’, ‘‘average’’, ‘‘expected’’, ‘‘good’’, or ‘‘satisfactory’’; 

(5) ensure that no award fee may be paid for contractor 

performance that is judged to be below satisfactory performance 

or performance that does not meet the basic requirements 

of the contract; 

(6) provide specific direction on the circumstances, if any, 

in which it may be appropriate to roll over award fees that 

are not earned in one award fee period to a subsequent award 

fee period or periods; 

(7) ensure consistent use of guidelines and definitions relating 

to award and incentive fees across the Federal Government; 

(8) ensure that each executive agency— 

(A) collects relevant data on award and incentive fees 

paid to contractors; and 

(B) has mechanisms in place to evaluate the data on 

a regular basis; 

(9) include performance measures to evaluate the effectiveness of award and incentive fees as a tool for improving contractor performance and achieving desired program outcomes; 

and 

(10) provide mechanisms for sharing proven incentive strategies for the acquisition of different types of products and services among contracting and program management officials. 

(d) GUIDANCE FOR DEPARTMENT OF DEFENSE.—The Department 

of Defense shall continue to be subject to guidance on award and 

incentive fees issued by the Secretary of Defense pursuant to section 

814 of the John Warner National Defense Authorization Act for 

Fiscal Year 2007 (Public Law 109–364, 10 U.S.C. 2302 note). 

Subtitle II—Other Advertising and Contract 

Provisions 

Chapter Sec. 

61. Advertising ................................................................................................ 6101 

63. General Contract Provisions ................................................................ 6301 

65. Contracts for Materials, Supplies, Articles, and Equipment Exceeding $10,000.6501 

67. Service Contract Labor Standards ..................................................... 6701 

CHAPTER 61—ADVERTISING 

Sec. 

6101. Advertising requirement for Federal Government purchases and sales. 

6102. Exceptions from advertising requirement. 

6103. Opening of bids. 

§ 6101. Advertising requirement for Federal Government 

purchases and sales 

(a) DEFINITIONS.—In this section— 
H. R. 1107—126 

(1) APPROPRIATION.—The term ‘‘appropriation’’ includes 

amounts made available by legislation under section 9104 of 

title 31. 

(2) FEDERAL GOVERNMENT.—The term ‘‘Federal Government’’ 

includes the government of the District of Columbia. 

(b) PURCHASES.— (1) IN GENERAL.—Unless otherwise provided in the appropriation concerned or other law, purchases and contracts for supplies or services for the Federal Government may be made 

or entered into only after advertising for proposals for a sufficient time. 

(2) LIMITATIONS ON APPLICABILITY.—Paragraph (1) does not 

apply when— 

(A) the amount involved in any one case does not exceed $25,000; 

(B) public exigencies require the immediate delivery of 

articles or performance of services; 

(C) only one source of supply is available and the Federal 

Government purchasing or contracting officer so certifies; 

or 

(D) services are required to be performed by a contractor 

in person and are— 

(i) of a technical and professional nature; or 

(ii) under Federal Government supervision and paid 

for on a time basis. 

(c) SALES.—Except when otherwise authorized by law or when 

the reasonable value involved in any one case does not exceed 

$500, sales and contracts of sale by the Federal Government are 

governed by the requirements of this section for advertising. 

(d) APPLICATION TO WHOLLY OWNED GOVERNMENT CORPORA- TIONS.—For wholly owned Government corporations, this section 

applies only to administrative transactions. 

§ 6102. Exceptions from advertising requirement 

(a) AMERICAN BATTLE MONUMENTS COMMISSION.—Section 6101 

of this title does not apply to the American Battle Monuments 

Commission with respect to leases in foreign countries for office 

or garage space. 

(b) BUREAU OF INTERPARLIAMENTARY UNION FOR PROMOTION OF

INTERNATIONAL ARBITRATION.—Section 6101 of this title does not 

apply to the Bureau of Interparliamentary Union for Promotion 

of International Arbitration with respect to necessary stenographic 

reporting services by contract. 

(c) DEPARTMENT OF STATE.—Section 6101 of this title does not 

apply to the Department of State when the purchase or service 

relates to the packing of personal and household effects of Diplomatic, Consular, and Foreign Service officers and clerks for foreign 

shipment. 

(d) INTERNATIONAL COMMITTEE OF AERIAL LEGAL EXPERTS.—Section 6101 of this title does not apply to the International Committee 

of Aerial Legal Experts with respect to necessary stenographic 

and other services by contract. 

(e) ARCHITECT OF THE CAPITOL.—The purchase of supplies and 

equipment and the procurement of services for all branches under 

the Architect of the Capitol may be made in the open market 

according to common business practice, without compliance with 

section 6101 of this title, when the aggregate amount of the purchase or the service does not exceed $25,000 in any instance. 
H. R. 1107—127 

(f) FOREST PRODUCTS FROM INDIAN RESERVATIONS.—Lumber and 

other forest products produced by Indian enterprises from forests 

on Indian reservations may be sold under regulations the Secretary 

of the Interior prescribes, without compliance with section 6101 

of this title. 

(g) HOUSE OF REPRESENTATIVES.—Section 6101 of this title does 

not apply to purchases and contracts for supplies or services for 

any office of the House of Representatives. 

(h) CONGRESSIONAL BUDGET OFFICE.—The Director of the 

Congressional Budget Office may enter into agreements or contracts 

without regard to section 6101 of this title. 

§ 6103. Opening of bids 

Whenever proposals for supplies have been solicited, the parties 

responding to the solicitation shall be notified of the time and 

place of the opening of the bids, and be permitted to be present 

either in person or by attorney. A record of each bid shall be 

made at the time and place of the opening of the bids. 

CHAPTER 63—GENERAL CONTRACT PROVISIONS 

Sec. 

6301. Authorization requirement. 

6302. Contracts for fuel made by Secretary of the Army. 

6303. Certain contracts limited to appropriated amounts. 

6304. Certain contracts limited to one-year term. 

6305. Prohibition on transfer of contract and certain allowable assignments. 

6306. Prohibition on Members of Congress making contracts with Federal Government. 

6307. Contracts with Federal Government-owned establishments and availability 

of appropriations. 6308. Contracts for transportation of Federal Government securities. 

6309. Honorable discharge certificate in lieu of birth certificate. 

§ 6301. Authorization requirement 

(a) IN GENERAL.—A contract or purchase on behalf of the Federal 

Government shall not be made unless the contract or purchase 

is authorized by law or is under an appropriation adequate to 

its fulfillment. 

(b) EXCEPTION.— (1) DEFINITION.—In this subsection, the term ‘‘defined Secretary’’ means— 

(A) the Secretary of Defense; or 

(B) the Secretary of Homeland Security with respect 

to the Coast Guard when the Coast Guard is not operating 

as a service in the Navy. 

(2) IN GENERAL.—Subsection (a) does not apply to a contract 

or purchase made by a defined Secretary for clothing, subsistence, forage, fuel, quarters, transportation, or medical and hospital supplies. 

(3) CURRENT YEAR LIMITATION.—A contract or purchase made 

by a defined Secretary under this subsection may not exceed 

the necessities of the current year. 

(4) REPORTS.—The defined Secretary shall immediately 

advise Congress when authority is exercised under this subsection. The defined Secretary shall report quarterly on the 

estimated obligations incurred pursuant to the authority 

granted in this subsection. 

(c) SPECIAL RULE FOR PURCHASE OF LAND.—Land may not be 

purchased by the Federal Government unless the purchase is 

authorized by law. 
H. R. 1107—128 

§ 6302. Contracts for fuel made by Secretary of the Army 

The Secretary of the Army, when the Secretary believes it is 

in the interest of the United States, may enter into contracts 

and incur obligations for fuel in sufficient quantities to meet the 

requirements for one year without regard to the current fiscal 

year. Amounts appropriated for the fiscal year in which the contract 

is made or amounts appropriated or which may be appropriated 

for the following fiscal year may be used to pay for supplies delivered under a contract made pursuant to this section. 

§ 6303. Certain contracts limited to appropriated amounts 

A contract to erect, repair, or furnish a public building, or to 

make any public improvement, shall not be made on terms requiring 

the Federal Government to pay more than the amount specifically 

appropriated for the activity covered by the contract. 

§ 6304. Certain contracts limited to one-year term 

Except as otherwise provided, an executive department shall not 

make a contract for stationery or other supplies for a term longer 

than one year from the time the contract is made. 

§ 6305. Prohibition on transfer of contract and certain allowable assignments 

(a) GENERAL PROHIBITION ON TRANSFER OF CONTRACTS.—The 

party to whom the Federal Government gives a contract or order 

may not transfer the contract or order, or any interest in the 

contract or order, to another party. A purported transfer in violation 

of this subsection annuls the contract or order so far as the Federal 

Government is concerned, except that all rights of action for breach 

of contract are reserved to the Federal Government. 

(b) ASSIGNMENT.— 

(1) IN GENERAL.—Notwithstanding subsection (a) and in 

accordance with the requirements of this subsection, amounts 

due from the Federal Government under a contract may be 

assigned to a bank, trust company, Federal lending agency, 

or other financing institution. 

(2) MINIMUM AMOUNT.—This subsection applies only to a 

contract under which the aggregate amounts due from the 

Federal Government total at least $1,000. 

(3) ACCORD WITH CONTRACT TERMS.—Assignment may not 

be made under this subsection if the contract forbids the assignment. 

(4) FULL BALANCE DUE.—Unless otherwise expressly permitted by the contract, an assignment under this subsection 

must cover the balance of all amounts due from the Federal 

Government under the contract. 

(5) SINGLE ASSIGNMENT.—Unless otherwise expressly permitted by the contract, an assignment under this subsection 

may not be made to more than one party or be subject to 

further assignment, except that assignment may be made to 

one party as agent or trustee for 2 or more parties participating 

in the financing. 

(6) WRITTEN NOTICE.—The assignee of an assignment under 

this subsection shall file written notice of the assignment and 

a true copy of the instrument of assignment with— 

(A) the contracting officer or head of the officer’s department or agency; 
H. R. 1107—129 

(B) the surety on any bond connected with the contract; 

and 

(C) the disbursing officer, if any, designated in the contract to make payment. 

(7) VALIDITY.—Notwithstanding any law to the contrary governing the validity of assignments, an assignment under this 

subsection is a valid assignment for all purposes. 

(8) NO REFUND TO COVER ASSIGNOR’S LIABILITY.—The assignee 

of an assignment under this subsection is not liable to make 

any refund to the Federal Government because of an assignor’s 

liability to the Federal Government, whether that liability 

arises from the contract or independently. 

(9) AVOIDING REDUCTION OR SETOFF WITH CERTAIN CON- TRACTS.— 

(A) CONTRACT PROVISION.—A contract of the Department 

of Defense, the General Services Administration, the 

Department of Energy, or another department or agency 

of the Federal Government designated by the President 

may, on a determination of need by the President, provide 

or be amended without consideration to provide that payments made to an assignee under the contract are not 

subject to reduction or setoff. Each determination of need 

by the President under this subparagraph shall be published in the Federal Register. 

(B) CARRYING OUT CONTRACT PROVISION.—When a ‘‘no 

reduction or setoff’’ provision as described in subparagraph 

(A) is included in a contract, payments to the assignee 

are not subject to reduction or setoff for an assignor’s 

liability arising— 

(i) independently of the contract; 

(ii) on account of renegotiation under a renegotiation 

statute or under a statutory renegotiation article in 

the contract; 

(iii) on account of fines; 

(iv) on account of penalties; or 

(v) on account of taxes, social security contributions, 

or the withholding or non-withholding of taxes or social 

security contributions, whether arising from or 

independently of the contract. 

(C) LIMITATION.—Subparagraph (B)(iv) does not apply 

to amounts which may be collected or withheld from the 

assignor in accordance with or for failure to comply with 

the terms of the contract. 

§ 6306. Prohibition on Members of Congress making contracts with Federal Government 

(a) IN GENERAL.—A Member of Congress may not enter into 

or benefit from a contract or agreement or any part of a contract 

or agreement with the Federal Government. 

(b) EXEMPTIONS.— 

(1) IN GENERAL.—Subsection (a) does not apply to contracts 

that the Secretary of Agriculture may enter into with farmers. 

(2) CERTAIN ACTS.—Subsection (a) does not apply to a contract 

entered into under— 

(A) the Agricultural Adjustment Act (7 U.S.C. 601 et 

seq.); 

(B) the Farm Credit Act of 1971 (12 U.S.C. 2001 et 

seq.); or 
H. R. 1107—130 

(C) the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.). 

(3) PUBLIC RECORD.—An exemption under this subsection 

shall be made a matter of public record. 

§ 6307. Contracts with Federal Government-owned establishments and availability of appropriations 

An order or contract placed with a Federal Government-owned 

establishment for work, material, or the manufacture of material 

pertaining to an approved project is deemed to be an obligation 

in the same manner that a similar order or contract placed with 

a commercial manufacturer or private contractor is an obligation. 

Appropriations remain available to pay an obligation to a Federal 

Government-owned establishment just as appropriations remain 

available to pay an obligation to a commercial manufacturer or 

private contractor. 

§ 6308. Contracts for transportation of Federal Government 

securities 

When practicable, a contract for transporting bullion, cash, or 

securities of the Federal Government shall be awarded to the lowest 

responsible bidder after notice to all parties with means of transportation. 

§ 6309. Honorable discharge certificate in lieu of birth certificate 

(a) IN GENERAL.—An employer described in subsection (b) may 

not deny employment, on account of failure to produce a birth 

certificate, to an individual who submits, in lieu of the birth certificate, an honorable discharge certificate (or certificate issued in 

lieu of an honorable discharge certificate) from the Army, Air Force, 

Navy, Marine Corps, or Coast Guard of the United States, unless 

the honorable discharge certificate shows on its face that the individual may have been an alien at the time of its issuance. 

(b) EMPLOYERS TO WHICH SECTION APPLIES.—An employer 

referred to in subsection (a) is an employer— 

(1) engaged in— 

(A) the production, maintenance, or storage of arms, 

armament, ammunition, implements of war, munitions, 

machinery, tools, clothing, food, fuel, or any articles or 

supplies, or parts or ingredients of any articles or supplies; 

or 

(B) the construction, reconstruction, repair, or installation of a building, plant, structure, or facility; and 

(2) engaged in the activity described in paragraph (1) under— 

(A) a contract with the Federal Government; or 

(B) any contract that the President, the Secretary of 

the Army, the Secretary of the Air Force, the Secretary 

of the Navy, or the Secretary of the Department in which 

the Coast Guard is operating certifies to the employer 

to be necessary to the national defense. 

CHAPTER 65—CONTRACTS FOR MATERIALS, SUPPLIES, 

ARTICLES, AND EQUIPMENT EXCEEDING $10,000 

Sec. 

6501. Definitions. 

6502. Required contract terms. 

6503. Breach or violation of required contract terms. 

6504. Three-year prohibition on new contracts in case of breach or violation. 
H. R. 1107—131 

6505. Exclusions. 

6506. Administrative provisions. 

6507. Hearing authority and procedures. 

6508. Authority to make exceptions. 

6509. Other procedures. 

6510. Manufacturers and regular dealers. 

6511. Effect on other law. 

§ 6501. Definitions 

In this chapter— 

(1) AGENCY OF THE UNITED STATES.—The term ‘‘agency of 

the United States’’ means an executive department, independent establishment, or other agency or instrumentality of 

the United States, the District of Columbia, or a corporation 

in which all stock is beneficially owned by the Federal Government. 

(2) PERSON.—The term ‘‘person’’ includes one or more individuals, partnerships, associations, corporations, legal representatives, trustees, trustees in cases under title 11, or receivers. 

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Labor. 

§ 6502. Required contract terms 

A contract made by an agency of the United States for the 

manufacture or furnishing of materials, supplies, articles, or equipment, in an amount exceeding $10,000, shall include the following 

representations and stipulations: 

(1) MINIMUM WAGES TO BE PAID.—All individuals employed 

by the contractor in the manufacture or furnishing of materials, 

supplies, articles, or equipment under the contract will be paid, 

without subsequent deduction or rebate on any account, not 

less than the prevailing minimum wages, as determined by 

the Secretary, for individuals employed in similar work or 

in the particular or similar industries or groups of industries 

currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished under the contract, except that this paragraph applies 

only to purchases or contracts relating to industries that have 

been the subject matter of a determination by the Secretary. 

(2) MAXIMUM NUMBER OF HOURS TO BE WORKED IN A WEEK.— 

No individual employed by the contractor in the manufacture 

or furnishing of materials, supplies, articles, or equipment 

under the contract shall be permitted to work in excess of 

40 hours in any one week, except that this paragraph does 

not apply to an employer who has entered into an agreement 

with employees pursuant to paragraph (1) or (2) of section 

7(b) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(b)(1) 

or (2)). 

(3) INELIGIBLE EMPLOYEES.—No individual under 16 years 

of age and no incarcerated individual will be employed by 

the contractor in the manufacture or furnishing of materials, 

supplies, articles, or equipment under the contract, except that 

this section, or other law or executive order containing similar 

prohibitions against the purchase of goods by the Federal 

Government, does not apply to convict labor that satisfies the 

conditions of section 1761(c) of title 18. 

(4) STANDARDS OF PLACES AND WORKING CONDITIONS WHERE

CONTRACT PERFORMED.—No part of the contract will be performed, and no materials, supplies, articles, or equipment will 

be manufactured or fabricated under the contract, in plants, 
H. R. 1107—132 

factories, buildings, or surroundings, or under working conditions, that are unsanitary, hazardous, or dangerous to the 

health and safety of employees engaged in the performance 

of the contract. Compliance with the safety, sanitary, and factory inspection laws of the State in which the work or part 

of the work is to be performed is prima facie evidence of 

compliance with this paragraph. 

§ 6503. Breach or violation of required contract terms 

(a) APPLICABLE BREACH OR VIOLATION.—This section applies in 

case of breach or violation of a representation or stipulation included 

in a contract under section 6502 of this title. 

(b) LIQUIDATED DAMAGES.—In addition to damages for any other 

breach of the contract, the party responsible for a breach or violation 

described in subsection (a) is liable to the Federal Government 

for the following liquidated damages: (1) An amount equal to the sum of $10 per day for each 

individual under 16 years of age and each incarcerated individual knowingly employed in the performance of the contract. 

(2) An amount equal to the sum of each underpayment of 

wages due an employee engaged in the performance of the 

contract, including any underpayments arising from deductions, 

rebates, or refunds. 

(c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition 

to the Federal Government being entitled to damages described 

in subsection (b), the agency of the United States that made the 

contract may cancel the contract and make open-market purchases 

or make other contracts for the completion of the original contract, 

charging any additional cost to the original contractor. 

(d) RECOVERY OF AMOUNTS DUE.—An amount due the Federal 

Government because of a breach or violation described in subsection 

(a) may be withheld from any amounts owed the contractor under 

any contract under section 6502 of this title or may be recovered 

in a suit brought by the Attorney General. 

(e) EMPLOYEE REIMBURSEMENT FOR UNDERPAYMENT OF WAGES.— An amount withheld or recovered under subsection (d) that is 

based on an underpayment of wages as described in subsection 

(b)(2) shall be held in a special deposit account. On order of the 

Secretary, the amount shall be paid directly to the underpaid 

employee on whose account the amount was withheld or recovered. 

However, an employee’s claim for payment under this subsection 

may be entertained only if made within one year from the date 

of actual notice to the contractor of the withholding or recovery. 

§ 6504. Three-year prohibition on new contracts in case of 

breach or violation 

(a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to each agency of the United States a list containing the 

names of persons found by the Secretary to have breached or 

violated a representation or stipulation included in a contract under 

section 6502 of this title. 

(b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends 

otherwise, a contract described in section 6502 of this title may 

not be awarded to a person named on the list under subsection 

(a), or to a firm, corporation, partnership, or association in which 

the person has a controlling interest, until 3 years have elapsed 

from the date of the determination by the Secretary that a breach 

or violation occurred. 
H. R. 1107—133 

§ 6505. Exclusions 

(a) ITEMS AVAILABLE IN THE OPEN MARKET.—This chapter does 

not apply to the purchase of materials, supplies, articles, or equipment that may usually be bought in the open market. 

(b) PERISHABLES AND AGRICULTURAL PRODUCTS.—This chapter 

does not apply to any of the following: 

(1) Perishables, including dairy, livestock and nursery products. 

(2) Agricultural or farm products processed for first sale 

by the original producers. 

(3) Contracts made by the Secretary of Agriculture for the 

purchase of agricultural commodities or products of agricultural 

commodities. 

(c) CARRIAGE OF FREIGHT OR PERSONNEL.—This chapter may 

not be construed to apply to— 

(1) the carriage of freight or personnel by vessel, airplane, 

bus, truck, express, or railway line where published tariff rates 

are in effect; or 

(2) common carriers subject to the Communications Act of 

1934 (47 U.S.C. 151 et seq.). 

§ 6506. Administrative provisions 

(a) IN GENERAL.—The Secretary shall administer this chapter. 

(b) REGULATIONS.—The Secretary may make, amend, and rescind 

regulations as necessary to carry out this chapter. 

(c) USE OF GOVERNMENT OFFICERS AND EMPLOYEES.—The Secretary shall use Federal officers and employees and, with a State’s 

consent, State and local officers and employees as the Secretary 

finds necessary to assist in the administration of this chapter. 

(d) APPOINTMENTS.—The Secretary shall appoint an administrative officer and attorneys, experts, and other employees from time 

to time as the Secretary finds necessary for the administration 

of this chapter. The appointments are subject to chapter 51 and 

subchapter III of chapter 53 of title 5 and other law applicable 

to the employment and compensation of officers and employees 

of the Federal Government. 

(e) INVESTIGATIONS.—The Secretary, or an authorized representative of the Secretary, may make investigations and findings as 

provided in this chapter and may, in any part of the United States, 

prosecute an inquiry necessary to carry out this chapter. 

§ 6507. Hearing authority and procedures 

(a) RECORD AND HEARING REQUIREMENTS FOR WAGE DETERMINATIONS.—A wage determination under section 6502(1) of this title 

shall be made on the record after opportunity for a hearing. 

(b) AUTHORITY TO HOLD HEARINGS.—The Secretary or an impartial representative designated by the Secretary may hold hearings 

when there is a complaint of breach or violation of a representation 

or stipulation included in a contract under section 6502 of this 

title. The Secretary may initiate hearings on the Secretary’s own 

motion or on the application of a person affected by the ruling 

of an agency of the United States relating to a proposal or contract 

under this chapter. 

(c) ORDERS TO COMPEL TESTIMONY.—The Secretary or an impartial representative designated by the Secretary may issue orders 

requiring witnesses to attend hearings held under this section and 

to produce evidence and testify under oath. Witnesses shall be 
H. R. 1107—134 

paid fees and mileage at the same rates as witnesses in courts 

of the United States. 

(d) ENFORCEMENT OF ORDERS.—If a person refuses or fails to 

obey an order issued under subsection (c), the Secretary or an 

impartial representative designated by the Secretary may bring 

an action to enforce the order in a district court of the United 

States or in the district court of a territory or possession of the 

United States. A court has jurisdiction to enforce the order if 

the inquiry is being carried out within the court’s judicial district 

or if the person is found or resides or transacts business within 

the court’s judicial district. The court may issue an order requiring 

the person to obey the order issued under subsection (c), and the 

court may punish any further refusal or failure as contempt of 

court. 

(e) FINDINGS OF FACT.—After notice and a hearing, the Secretary 

or an impartial representative designated by the Secretary shall 

make findings of fact. The findings are conclusive for agencies 

of the United States. If supported by a preponderance of the evidence, the findings are conclusive in any court of the United States. 

(f) DECISIONS.—The Secretary or an impartial representative designated by the Secretary may make decisions, based on findings 

of fact, that are considered necessary to enforce this chapter. 

§ 6508. Authority to make exceptions 

(a) DUTY OF THE SECRETARY TO MAKE EXCEPTIONS.—When the 

head of an agency of the United States makes a written finding 

that the inclusion of representations or stipulations under section 

6502 of this title in a proposal or contract will seriously impair 

the conduct of Federal Government business, the Secretary shall 

make exceptions, in specific cases or otherwise, when justice or 

the public interest will be served. 

(b) AUTHORITY OF THE SECRETARY TO MODIFY EXISTING CONTRACTS.—When an agency of the United States and a contractor 

jointly recommend, the Secretary may modify the terms of an 

existing contract with respect to minimum wages and maximum 

hours of labor as the Secretary finds necessary and proper in 

the public interest or to prevent injustice and undue hardship. 

(c) AUTHORITY OF THE SECRETARY TO ALLOW LIMITATIONS, VARI- ATIONS, TOLERANCES, AND EXEMPTIONS.—The Secretary may provide reasonable limitations and may prescribe regulations to allow 

reasonable variations, tolerances, and exemptions in the application 

of this chapter to contractors, including with respect to minimum 

wages and maximum hours of labor. 

(d) RATE OF PAY FOR OVERTIME.—When the Secretary permits 

an increase in the maximum hours of labor stipulated in a contract, 

the Secretary shall set a rate of pay for overtime. The overtime 

rate must be at least one and one-half times the basic hourly 

rate. 

(e) AUTHORITY OF THE PRESIDENT TO SUSPEND.—The President 

may suspend any of the representations and stipulations contained 

in section 6502 of this title whenever, in the President’s judgment, 

suspension is in the public interest. 

§ 6509. Other procedures 

(a) APPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS.—Notwithstanding section 553 of title 5, subchapter II of chapter 5 

and chapter 7 of title 5 are applicable in the administration of 

sections 6501 to 6507 and 6511 of this title. 
H. R. 1107—135 

(b) JUDICIAL REVIEW IN GENERAL.—Notwithstanding the inclusion 

of representations and stipulations in a contract under section 

6502 of this title, an interested person has the right of judicial 

review of any legal question which might otherwise be raised, 

including wage determinations and the interpretation of the terms 

‘‘locality’’ and ‘‘open market’’. 

(c) JUDICIAL REVIEW OF WAGE DETERMINATIONS.—A person 

adversely affected or aggrieved by a wage determination under 

section 6502(1) of this title has the right of judicial review of 

the determination, or of the applicability of the determination, 

within 90 days after the determination is made, in the manner 

provided by chapter 7 of title 5. A person adversely affected or 

aggrieved by a wage determination is deemed to include a person 

in an industry to which the determination applies that is a supplier 

of materials, supplies, articles, or equipment that are purchased 

or intended to be purchased by the Federal Government from any 

source. 

§ 6510. Manufacturers and regular dealers 

(a) PRESCRIBING STANDARDS.—The Secretary may prescribe, in 

regulations, standards for determining whether a contractor is a 

manufacturer or regular dealer with respect to materials, supplies, 

articles, or equipment to be manufactured or furnished under, or 

used in the performance of, a contract entered into by an agency 

of the United States. 

(b) JUDICIAL REVIEW.—An interested person has the right of 

judicial review of any legal question relating to interpretation of 

the terms ‘‘regular dealer’’ and ‘‘manufacturer’’ as defined pursuant 

to subsection (a). 

§ 6511. Effect on other law 

This chapter may not be construed to modify or amend the 

following provisions: 

(1) Chapter 83 of this title. 

(2) Sections 3141 to 3144, 3146, and 3147 of title 40. 

(3) Chapter 307 of title 18. 

CHAPTER 67—SERVICE CONTRACT LABOR STANDARDS 

Sec. 

6701. Definitions. 

6702. Contracts to which this chapter applies. 

6703. Required contract terms. 

6704. Limitation on minimum wage. 

6705. Violations. 

6706. Three-year prohibition on new contracts in case of violation. 

6707. Enforcement and administration of chapter. 

§ 6701. Definitions 

In this chapter: 

(1) COMPENSATION.—The term ‘‘compensation’’ means any of 

the payments or fringe benefits described in section 6703 of 

this title. 

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Labor. 

(3) SERVICE EMPLOYEE.—The term ‘‘service employee’’— 

(A) means an individual engaged in the performance 

of a contract made by the Federal Government and not 
H. R. 1107—136 

exempted under section 6702(b) of this title, whether negotiated or advertised, the principal purpose of which is to 

furnish services in the United States; 

(B) includes an individual without regard to any contractual relationship alleged to exist between the individual 

and a contractor or subcontractor; but 

(C) does not include an individual employed in a bona 

fide executive, administrative, or professional capacity, as 

those terms are defined in part 541 of title 29, Code of 

Federal Regulations. 

(4) UNITED STATES.—The term ‘‘United States’’— 

(A) includes any State of the United States, the District 

of Columbia, Puerto Rico, the Virgin Islands, the outer 

Continental Shelf as defined in the Outer Continental Shelf 

Lands Act (43 U.S.C. § 1331 et seq.), American Samoa, 

Guam, Wake Island, and Johnston Island; but 

(B) does not include any other territory under the jurisdiction of the United States or any United States base 

or possession within a foreign country. 

§ 6702. Contracts to which this chapter applies 

(a) IN GENERAL.—Except as provided in subsection (b), this 

chapter applies to any contract or bid specification for a contract, 

whether negotiated or advertised, that— 

(1) is made by the Federal Government or the District of 

Columbia; 

(2) involves an amount exceeding $2,500; and 

(3) has as its principal purpose the furnishing of services 

in the United States through the use of service employees. 

(b) EXEMPTIONS.—This chapter does not apply to— 

(1) a contract of the Federal Government or the District 

of Columbia for the construction, alteration, or repair, including 

painting and decorating, of public buildings or public works; 

(2) any work required to be done in accordance with chapter 

65 of this title; 

(3) a contract for the carriage of freight or personnel by 

vessel, airplane, bus, truck, express, railway line or oil or 

gas pipeline where published tariff rates are in effect; 

(4) a contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934 (47 U.S.C. 151 et seq.); 

(5) a contract for public utility services, including electric 

light and power, water, steam, and gas; 

(6) an employment contract providing for direct services to 

a Federal agency by an individual; and 

(7) a contract with the United States Postal Service, the 

principal purpose of which is the operation of postal contract 

stations. 

§ 6703. Required contract terms 

A contract, and bid specification for a contract, to which this 

chapter applies under section 6702 of this title shall contain the 

following terms: 

(1) MINIMUM WAGE.—The contract and bid specification shall 

contain a provision specifying the minimum wage to be paid 

to each class of service employee engaged in the performance 
H. R. 1107—137 

of the contract or any subcontract, as determined by the Secretary or the Secretary’s authorized representative, in accordance with prevailing rates in the locality, or, where a collectivebargaining agreement covers the service employees, in accordance with the rates provided for in the agreement, including 

prospective wage increases provided for in the agreement as 

a result of arm’s length negotiations. In any case the minimum 

wage may not be less than the minimum wage specified in 

section 6704 of this title. 

(2) FRINGE BENEFITS.—The contract and bid specification 

shall contain a provision specifying the fringe benefits to be 

provided to each class of service employee engaged in the 

performance of the contract or any subcontract, as determined 

by the Secretary or the Secretary’s authorized representative 

to be prevailing in the locality, or, where a collective-bargaining 

agreement covers the service employees, to be provided for 

under the agreement, including prospective fringe benefit 

increases provided for in the agreement as a result of arm’slength negotiations. The fringe benefits shall include medical 

or hospital care, pensions on retirement or death, compensation 

for injuries or illness resulting from occupational activity, or 

insurance to provide any of the foregoing, unemployment benefits, life insurance, disability and sickness insurance, accident 

insurance, vacation and holiday pay, costs of apprenticeship 

or other similar programs and other bona fide fringe benefits 

not otherwise required by Federal, State, or local law to be 

provided by the contractor or subcontractor. The obligation 

under this paragraph may be discharged by furnishing any 

equivalent combinations of fringe benefits or by making equivalent or differential payments in cash under regulations established by the Secretary. 

(3) WORKING CONDITIONS.—The contract and bid specification 

shall contain a provision specifying that no part of the services 

covered by this chapter may be performed in buildings or surroundings or under working conditions, provided by or under 

the control or supervision of the contractor or any subcontractor, 

which are unsanitary or hazardous or dangerous to the health 

or safety of service employees engaged to provide the services. 

(4) NOTICE.—The contract and bid specification shall contain 

a provision specifying that on the date a service employee 

begins work on a contract to which this chapter applies, the 

contractor or subcontractor will deliver to the employee a notice 

of the compensation required under paragraphs (1) and (2), 

on a form prepared by the Federal agency, or will post a 

notice of the required compensation in a prominent place at 

the worksite. 

(5) GENERAL SCHEDULE PAY RATES AND PREVAILING RATE SYSTEMS.—The contract and bid specification shall contain a statement of the rates that would be paid by the Federal agency 

to each class of service employee if section 5332 or 5341 of 

title 5 were applicable to them. The Secretary shall give due 

consideration to these rates in making the wage and fringe 

benefit determinations specified in this section. 

§ 6704. Limitation on minimum wage 

(a) IN GENERAL.—A contractor that makes a contract with the 

Federal Government, the principal purpose of which is to furnish 
H. R. 1107—138 

services through the use of service employees, and any subcontractor, may not pay less than the minimum wage specified under 

section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 

206(a)(1)) to an employee engaged in performing work on the contract. 

(b) VIOLATIONS.—Sections 6705 to 6707(d) of this title are 

applicable to a violation of this section. 

§ 6705. Violations 

(a) LIABILITY OF RESPONSIBLE PARTY.—A party responsible for 

a violation of a contract provision required under section 6703(1) 

or (2) of this title or a violation of section 6704 of this title is 

liable for an amount equal to the sum of any deduction, rebate, 

refund, or underpayment of compensation due any employee 

engaged in the performance of the contract. 

(b) RECOVERY OF AMOUNTS UNDERPAID TO EMPLOYEES.— (1) WITHHOLDING ACCRUED PAYMENTS DUE ON CONTRACTS.— 

The total amount determined under subsection (a) to be due 

any employee engaged in the performance of a contract may 

be withheld from accrued payments due on the contract or 

on any other contract between the same contractor and the 

Federal Government. The amount withheld shall be held in 

a deposit fund. On order of the Secretary, the compensation 

found by the Secretary or the head of a Federal agency to 

be due an underpaid employee pursuant to this chapter shall 

be paid from the deposit fund directly to the underpaid 

employee. 

(2) BRINGING ACTIONS AGAINST CONTRACTORS.—If the accrued 

payments withheld under the terms of the contract are insufficient to reimburse a service employee with respect to whom 

there has been a failure to pay the compensation required 

pursuant to this chapter, the Federal Government may bring 

action against the contractor, subcontractor, or any sureties 

in any court of competent jurisdiction to recover the remaining 

amount of underpayment. Any amount recovered shall be held 

in the deposit fund and shall be paid, on order of the Secretary, 

directly to the underpaid employee. Any amount not paid to 

an employee because of inability to do so within 3 years shall 

be covered into the Treasury as miscellaneous receipts. 

(c) CANCELLATION AND ALTERNATIVE COMPLETION.—In addition 

to other actions in accordance with this section, when a violation 

of any contract stipulation is found, the Federal agency that made 

the contract may cancel the contract on written notice to the original 

contractor. The Federal Government may then make other contracts 

or arrangements for the completion of the original contract, charging 

any additional cost to the original contractor. 

(d) ENFORCEMENT OF SECTION.—In accordance with regulations 

prescribed pursuant to section 6707(a)–(d) of this title, the Secretary 

or the head of a Federal agency may carry out this section. 

§ 6706. Three-year prohibition on new contracts in case of 

violation 

(a) DISTRIBUTION OF LIST.—The Comptroller General shall distribute to each agency of the Federal Government a list containing 

the names of persons or firms that a Federal agency or the Secretary 

has found to have violated this chapter. 

(b) THREE-YEAR PROHIBITION.—Unless the Secretary recommends 

otherwise because of unusual circumstances, a Federal Government 
H. R. 1107—139 

contract may not be awarded to a person or firm named on the 

list under subsection (a), or to an entity in which the person 

or firm has a substantial interest, until 3 years have elapsed 

from the date of publication of the list. If the Secretary does not 

recommend otherwise because of unusual circumstances, the Secretary shall, not later than 90 days after a hearing examiner 

has made a finding of a violation of this chapter, forward to the 

Comptroller General the name of the person or firm found to 

have violated this chapter. 

§ 6707. Enforcement and administration of chapter 

(a) ENFORCEMENT OF CHAPTER.—Sections 6506 and 6507 of this 

title govern the Secretary’s authority to enforce this chapter, 

including the Secretary’s authority to prescribe regulations, issue 

orders, hold hearings, make decisions based on findings of fact, 

and take other appropriate action under this chapter. 

(b) LIMITATIONS AND REGULATIONS FOR VARIATIONS, TOLERANCES, AND EXEMPTIONS.—The Secretary may provide reasonable limitations and may prescribe regulations allowing reasonable variation, 

tolerances, and exemptions with respect to this chapter (other than 

subsection (f)), but only in special circumstances where the Secretary determines that the limitation, variation, tolerance, or 

exemption is necessary and proper in the public interest or to 

avoid the serious impairment of Federal Government business, and 

is in accord with the remedial purpose of this chapter to protect 

prevailing labor standards. 

(c) PRESERVATION OF WAGES AND BENEFITS DUE UNDER PREDECESSOR CONTRACTS.— 

(1) IN GENERAL.—Under a contract which succeeds a contract 

subject to this chapter, and under which substantially the 

same services are furnished, a contractor or subcontractor may 

not pay a service employee less than the wages and fringe 

benefits the service employee would have received under the 

predecessor contract, including accrued wages and fringe benefits and any prospective increases in wages and fringe benefits 

provided for in a collective-bargaining agreement as a result 

of arm’s-length negotiations. 

(2) EXCEPTION.—This subsection does not apply if the Secretary finds after a hearing in accordance with regulations 

adopted by the Secretary that wages and fringe benefits under 

the predecessor contract are substantially at variance with 

wages and fringe benefits prevailing in the same locality for 

services of a similar character. 

(d) DURATION OF CONTRACTS.—Subject to limitations in annual 

appropriation acts but notwithstanding any other law, a contract 

to which this chapter applies may, if authorized by the Secretary, 

be for any term of years not exceeding 5, if the contract provides 

for periodic adjustment of wages and fringe benefits pursuant to 

future determinations, issued in the manner prescribed in section 

6703 of this title at least once every 2 years during the term 

of the contract, covering each class of service employee. 

(e) EXCLUSION OF FRINGE BENEFIT PAYMENTS IN DETERMINING

OVERTIME PAY.—In determining any overtime pay to which a 

service employee is entitled under Federal law, the regular or 

basic hourly rate of pay of the service employee does not include 

any fringe benefit payments computed under this chapter which 

are excluded from the definition of ‘‘regular rate’’ under section 

7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)). 
H. R. 1107—140 

(f) TIMELINESS OF WAGE AND FRINGE BENEFIT DETERMINATIONS.— 

It is the intent of Congress that determinations of minimum wages 

and fringe benefits under section 6703(1) and (2) of this title should 

be made as soon as administratively feasible for all contracts subject 

to this chapter. In any event, the Secretary shall at least make 

the determinations for contracts under which more than 5 service 

employees are to be employed. 

Subtitle III—Contract Disputes 

Chapter Sec. 

71. Contract Disputes ....................................................................................... 7101 

CHAPTER 71—CONTRACT DISPUTES 

Sec. 

7101. Definitions. 

7102. Applicability of chapter. 

7103. Decision by contracting officer. 

7104. Contractor’s right of appeal from decision by contracting officer. 

7105. Agency boards. 

7106. Agency board procedures for accelerated and small claims. 

7107. Judicial review of agency board decisions. 

7108. Payment of claims. 

7109. Interest. 

§ 7101. Definitions 

In this chapter: 

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator for Federal Procurement Policy appointed pursuant to section 1102 of this title. 

(2) AGENCY BOARD OR AGENCY BOARD OF CONTRACT APPEALS.— The term ‘‘agency board’’ or ‘‘agency board of contract appeals’’ 

means— 

(A) the Armed Services Board; 

(B) the Civilian Board; 

(C) the board of contract appeals of the Tennessee Valley 

Authority; or 

(D) the Postal Service Board established under section 

7105(d)(1) of this title. 

(3) AGENCY HEAD.—The term ‘‘agency head’’ means the head 

and any assistant head of an executive agency. The term may 

include the chief official of a principal division of an executive 

agency if the head of the executive agency so designates that 

chief official. 

(4) ARMED SERVICES BOARD.—The term ‘‘Armed Services 

Board’’ means the Armed Services Board of Contract Appeals 

established under section 7105(a)(1) of this title. 

(5) CIVILIAN BOARD.—The term ‘‘Civilian Board’’ means the 

Civilian Board of Contract Appeals established under section 

7105(b)(1) of this title. 

(6) CONTRACTING OFFICER.—The term ‘‘contracting officer’’— 

(A) means an individual who, by appointment in accordance with applicable regulations, has the authority to make 

and administer contracts and to make determinations and 

findings with respect to contracts; and 

(B) includes an authorized representative of the contracting officer, acting within the limits of the representative’s authority. 
H. R. 1107—141 

(7) CONTRACTOR.—The term ‘‘contractor’’ means a party to 

a Federal Government contract other than the Federal Government. 

(8) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ 

means— 

(A) an executive department as defined in section 101 

of title 5; 

(B) a military department as defined in section 102 of 

title 5; 

(C) an independent establishment as defined in section 

104 of title 5, except that the term does not include the 

Government Accountability Office; and 

(D) a wholly owned Government corporation as defined 

in section 9101(3) of title 31. 

(9) MISREPRESENTATION OF FACT.—The term ‘‘misrepresentation of fact’’ means a false statement of substantive fact, or 

conduct that leads to a belief of a substantive fact material 

to proper understanding of the matter in hand, made with 

intent to deceive or mislead. 

§ 7102. Applicability of chapter 

(a) EXECUTIVE AGENCY CONTRACTS.—Unless otherwise specifically 

provided in this chapter, this chapter applies to any express or 

implied contract (including those of the nonappropriated fund activities described in sections 1346 and 1491 of title 28) made by 

an executive agency for— 

(1) the procurement of property, other than real property 

in being; 

(2) the procurement of services; 

(3) the procurement of construction, alteration, repair, or 

maintenance of real property; or 

(4) the disposal of personal property. 

(b) TENNESSEE VALLEY AUTHORITY CONTRACTS.— 

(1) IN GENERAL.—With respect to contracts of the Tennessee 

Valley Authority, this chapter applies only to contracts containing a clause that requires contract disputes to be resolved 

through an agency administrative process. 

(2) EXCLUSION.—Notwithstanding any other provision of this 

chapter, this chapter does not apply to a contract of the Tennessee Valley Authority for the sale of fertilizer or electric 

power or related to the conduct or operation of the electric 

power system. 

(c) FOREIGN GOVERNMENT OR INTERNATIONAL ORGANIZATION CONTRACTS.—If an agency head determines that applying this chapter 

would not be in the public interest, this chapter does not apply 

to a contract with a foreign government, an agency of a foreign 

government, an international organization, or a subsidiary body 

of an international organization. 

(d) MARITIME CONTRACTS.—Appeals under section 7107(a) of this 

title and actions brought under sections 7104(b) and 7107(b) to 

(f) of this title, arising out of maritime contracts, are governed 

by chapter 309 or 311 of title 46, as applicable, to the extent 

that those chapters are not inconsistent with this chapter. 

§ 7103. Decision by contracting officer 

(a) CLAIMS GENERALLY.— 

(1) SUBMISSION OF CONTRACTOR’S CLAIMS TO CONTRACTING

OFFICER.—Each claim by a contractor against the Federal 
H. R. 1107—142 

Government relating to a contract shall be submitted to the 

contracting officer for a decision. 

(2) CONTRACTOR’S CLAIMS IN WRITING.—Each claim by a contractor against the Federal Government relating to a contract 

shall be in writing. 

(3) CONTRACTING OFFICER TO DECIDE FEDERAL GOVERNMENT’S

CLAIMS.—Each claim by the Federal Government against a 

contractor relating to a contract shall be the subject of a written 

decision by the contracting officer. 

(4) TIME FOR SUBMITTING CLAIMS.— (A) IN GENERAL.—Each claim by a contractor against 

the Federal Government relating to a contract and each 

claim by the Federal Government against a contractor 

relating to a contract shall be submitted within 6 years 

after the accrual of the claim. 

(B) EXCEPTION.—Subparagraph (A) of this paragraph 

does not apply to a claim by the Federal Government 

against a contractor that is based on a claim by the contractor involving fraud. 

(5) APPLICABILITY.—The authority of this subsection and subsections (c)(1), (d), and (e) does not extend to a claim or dispute 

for penalties or forfeitures prescribed by statute or regulation 

that another Federal agency is specifically authorized to administer, settle, or determine. 

(b) CERTIFICATION OF CLAIMS.— (1) REQUIREMENT GENERALLY.—For claims of more than 

$100,000 made by a contractor, the contractor shall certify 

that— 

(A) the claim is made in good faith; 

(B) the supporting data are accurate and complete to 

the best of the contractor’s knowledge and belief; 

(C) the amount requested accurately reflects the contract 

adjustment for which the contractor believes the Federal 

Government is liable; and 

(D) the certifier is authorized to certify the claim on 

behalf of the contractor. 

(2) WHO MAY EXECUTE CERTIFICATION.—The certification 

required by paragraph (1) may be executed by an individual 

authorized to bind the contractor with respect to the claim. 

(3) FAILURE TO CERTIFY OR DEFECTIVE CERTIFICATION.—A contracting officer is not obligated to render a final decision on 

a claim of more than $100,000 that is not certified in accordance 

with paragraph (1) if, within 60 days after receipt of the claim, 

the contracting officer notifies the contractor in writing of the 

reasons why any attempted certification was found to be defective. A defect in the certification of a claim does not deprive 

a court or an agency board of jurisdiction over the claim. 

Prior to the entry of a final judgment by a court or a decision 

by an agency board, the court or agency board shall require 

a defective certification to be corrected. 

(c) FRAUDULENT CLAIMS.— 

(1) NO AUTHORITY TO SETTLE.—This section does not 

authorize an agency head to settle, compromise, pay, or otherwise adjust any claim involving fraud. 

(2) LIABILITY OF CONTRACTOR.—If a contractor is unable to 

support any part of the contractor’s claim and it is determined 

that the inability is attributable to a misrepresentation of fact 

or fraud by the contractor, then the contractor is liable to 
H. R. 1107—143 

the Federal Government for an amount equal to the unsupported part of the claim plus all of the Federal Government’s 

costs attributable to reviewing the unsupported part of the 

claim. Liability under this paragraph shall be determined 

within 6 years of the commission of the misrepresentation 

of fact or fraud. 

(d) ISSUANCE OF DECISION.—The contracting officer shall issue 

a decision in writing and shall mail or otherwise furnish a copy 

of the decision to the contractor. 

(e) CONTENTS OF DECISION.—The contracting officer’s decision 

shall state the reasons for the decision reached and shall inform 

the contractor of the contractor’s rights as provided in this chapter. 

Specific findings of fact are not required. If made, specific findings 

of fact are not binding in any subsequent proceeding. 

(f) TIME FOR ISSUANCE OF DECISION.— (1) CLAIM OF $100,000 OR LESS.—A contracting officer shall issue a decision on any submitted claim of $100,000 or less 

within 60 days from the contracting officer’s receipt of a written 

request from the contractor that a decision be rendered within 

that period. 

(2) CLAIM OF MORE THAN $100,000.—A contracting officer shall, 

within 60 days of receipt of a submitted certified claim over 

$100,000— 

(A) issue a decision; or 

(B) notify the contractor of the time within which a 

decision will be issued. 

(3) GENERAL REQUIREMENT OF REASONABLENESS.—The decision of a contracting officer on submitted claims shall be issued 

within a reasonable time, in accordance with regulations prescribed by the agency, taking into account such factors as 

the size and complexity of the claim and the adequacy of 

information in support of the claim provided by the contractor. 

(4) REQUESTING TRIBUNAL TO DIRECT ISSUANCE WITHIN SPECI- FIED TIME PERIOD.—A contractor may request the tribunal concerned to direct a contracting officer to issue a decision in 

a specified period of time, as determined by the tribunal concerned, in the event of undue delay on the part of the contracting officer. 

(5) FAILURE TO ISSUE DECISION WITHIN REQUIRED TIME

PERIOD.—Failure by a contracting officer to issue a decision 

on a claim within the required time period is deemed to be 

a decision by the contracting officer denying the claim and 

authorizes an appeal or action on the claim as otherwise provided in this chapter. However, the tribunal concerned may, 

at its option, stay the proceedings of the appeal or action 

to obtain a decision by the contracting officer. 

(g) FINALITY OF DECISION UNLESS APPEALED.—The contracting 

officer’s decision on a claim is final and conclusive and is not 

subject to review by any forum, tribunal, or Federal Government 

agency, unless an appeal or action is timely commenced as authorized by this chapter. This chapter does not prohibit an executive 

agency from including a clause in a Federal Government contract 

requiring that, pending final decision of an appeal, action, or final 

settlement, a contractor shall proceed diligently with performance 

of the contract in accordance with the contracting officer’s decision. 

(h) ALTERNATIVE MEANS OF DISPUTE RESOLUTION.— 

(1) IN GENERAL.—Notwithstanding any other provision of this 

chapter, a contractor and a contracting officer may use any 
H. R. 1107—144 

alternative means of dispute resolution under subchapter IV 

of chapter 5 of title 5, or other mutually agreeable procedures, 

for resolving claims. All provisions of subchapter IV of chapter 

5 of title 5 apply to alternative means of dispute resolution 

under this subsection. 

(2) CERTIFICATION OF CLAIM.—The contractor shall certify 

the claim when required to do so under subsection (b)(1) or 

other law. 

(3) REJECTING REQUEST FOR ALTERNATIVE DISPUTE RESOLU- TION.— 

(A) CONTRACTING OFFICER.—A contracting officer who 

rejects a contractor’s request for alternative dispute resolution proceedings shall provide the contractor with a written 

explanation, citing one or more of the conditions in section 

572(b) of title 5 or other specific reasons that alternative 

dispute resolution procedures are inappropriate. 

(B) CONTRACTOR.—A contractor that rejects an agency’s 

request for alternative dispute resolution proceedings shall 

inform the agency in writing of the contractor’s specific 

reasons for rejecting the request. 

§ 7104. Contractor’s right of appeal from decision by contracting officer 

(a) APPEAL TO AGENCY BOARD.—A contractor, within 90 days 

from the date of receipt of a contracting officer’s decision under 

section 7103 of this title, may appeal the decision to an agency 

board as provided in section 7105 of this title. 

(b) BRINGING AN ACTION DE NOVO IN FEDERAL COURT.— 

(1) IN GENERAL.—Except as provided in paragraph (2), and 

in lieu of appealing the decision of a contracting officer under 

section 7103 of this title to an agency board, a contractor 

may bring an action directly on the claim in the United States 

Court of Federal Claims, notwithstanding any contract provision, regulation, or rule of law to the contrary. 

(2) TENNESSEE VALLEY AUTHORITY.—In the case of an action 

against the Tennessee Valley Authority, the contractor may 

only bring an action directly on the claim in a district court 

of the United States pursuant to section 1337 of title 28, notwithstanding any contract provision, regulation, or rule of law 

to the contrary. 

(3) TIME FOR FILING.—A contractor shall file any action under 

paragraph (1) or (2) within 12 months from the date of receipt 

of a contracting officer’s decision under section 7103 of this 

title. 

(4) DE NOVO.—An action under paragraph (1) or (2) shall 

proceed de novo in accordance with the rules of the appropriate 

court. 

§ 7105. Agency boards 

(a) ARMED SERVICES BOARD.— 

(1) ESTABLISHMENT.—An Armed Services Board of Contract 

Appeals may be established within the Department of Defense 

when the Secretary of Defense, after consultation with the 

Administrator, determines from a workload study that the 

volume of contract claims justifies the establishment of a fulltime agency board of at least 3 members who shall have no 

other inconsistent duties. Workload studies will be updated 

at least once every 3 years and submitted to the Administrator. 
H. R. 1107—145 

(2) APPOINTMENT OF MEMBERS AND COMPENSATION.—Members of the Armed Services Board shall be selected and 

appointed in the same manner as administrative law judges 

appointed pursuant to section 3105 of title 5, with an additional 

requirement that members must have had at least 5 years 

of experience in public contract law. The Secretary of Defense 

shall designate the chairman and vice chairman of the Armed 

Services Board from among the appointed members. Compensation for the chairman, vice chairman, and other members shall 

be determined under section 5372a of title 5. 

(b) CIVILIAN BOARD.— 

(1) ESTABLISHMENT.—There is established in the General 

Services Administration the Civilian Board of Contract Appeals. 

(2) MEMBERSHIP.— 

(A) ELIGIBILITY.—The Civilian Board consists of members 

appointed by the Administrator of General Services (in 

consultation with the Administrator for Federal Procurement Policy) from a register of applicants maintained by 

the Administrator of General Services, in accordance with 

rules issued by the Administrator of General Services (in 

consultation with the Administrator for Federal Procurement Policy) for establishing and maintaining a register 

of eligible applicants and selecting Civilian Board members. 

The Administrator of General Services shall appoint a 

member without regard to political affiliation and solely 

on the basis of the professional qualifications required to 

perform the duties and responsibilities of a Civilian Board 

member. 

(B) APPOINTMENT OF MEMBERS AND COMPENSATION.— 

Members of the Civilian Board shall be selected and 

appointed to serve in the same manner as administrative 

law judges appointed pursuant to section 3105 of title 

5, with an additional requirement that members must have 

had at least 5 years experience in public contract law. 

Compensation for the members shall be determined under 

section 5372a of title 5. 

(3) REMOVAL.—Members of the Civilian Board are subject 

to removal in the same manner as administrative law judges, 

as provided in section 7521 of title 5. 

(4) FUNCTIONS.— 

(A) IN GENERAL.—The Civilian Board has jurisdiction 

as provided by subsection (e)(1)(B). 

(B) ADDITIONAL JURISDICTION.—With the concurrence of 

the Federal agencies affected, the Civilian Board may 

assume— 

(i) jurisdiction over any additional category of laws 

or disputes over which an agency board of contract 

appeals established pursuant to section 8 of the Contract Disputes Act exercised jurisdiction before January 

6, 2007; and 

(ii) any other function the agency board performed 

before January 6, 2007, on behalf of those agencies. 

(c) TENNESSEE VALLEY AUTHORITY BOARD.— 

(1) ESTABLISHMENT.—The Board of Directors of the Tennessee 

Valley Authority may establish a board of contract appeals 

of the Tennessee Valley Authority of an indeterminate number 

of members. 
H. R. 1107—146 

(2) APPOINTMENT OF MEMBERS AND COMPENSATION.—The 

Board of Directors of the Tennessee Valley Authority shall 

establish criteria for the appointment of members to the agency 

board established under paragraph (1), and shall designate 

a chairman of the agency board. The chairman and other members of the agency board shall receive compensation, at the 

daily equivalent of the rates determined under section 5372a 

of title 5, for each day they are engaged in the actual performance of their duties as members of the agency board. 

(d) POSTAL SERVICE BOARD.— (1) ESTABLISHMENT.—There is established an agency board 

of contract appeals known as the Postal Service Board of Contract Appeals. 

(2) APPOINTMENT AND SERVICE OF MEMBERS.—The Postal 

Service Board of Contract Appeals consists of judges appointed 

by the Postmaster General. The judges shall meet the qualifications of and serve in the same manner as members of the 

Civilian Board. 

(3) APPLICATION.—This chapter applies to contract disputes 

before the Postal Service Board of Contract Appeals in the 

same manner as it applies to contract disputes before the 

Civilian Board. 

(e) JURISDICTION.— (1) IN GENERAL.— (A) ARMED SERVICES BOARD.—The Armed Services Board 

has jurisdiction to decide any appeal from a decision of 

a contracting officer of the Department of Defense, the 

Department of the Army, the Department of the Navy, 

the Department of the Air Force, or the National Aeronautics and Space Administration relative to a contract 

made by that department or agency. 

(B) CIVILIAN BOARD.—The Civilian Board has jurisdiction 

to decide any appeal from a decision of a contracting officer 

of any executive agency (other than the Department of 

Defense, the Department of the Army, the Department 

of the Navy, the Department of the Air Force, the National 

Aeronautics and Space Administration, the United States 

Postal Service, the Postal Regulatory Commission, or the 

Tennessee Valley Authority) relative to a contract made 

by that agency. 

(C) POSTAL SERVICE BOARD.—The Postal Service Board 

of Contract Appeals has jurisdiction to decide any appeal 

from a decision of a contracting officer of the United States 

Postal Service or the Postal Regulatory Commission relative to a contract made by either agency. 

(D) OTHER AGENCY BOARDS.—Each other agency board 

has jurisdiction to decide any appeal from a decision of 

a contracting officer relative to a contract made by its 

agency. 

(2) RELIEF.—In exercising this jurisdiction, an agency board 

may grant any relief that would be available to a litigant 

asserting a contract claim in the United States Court of Federal 

Claims. 

(f) SUBPOENA, DISCOVERY, AND DEPOSITION.—A member of an 

agency board of contract appeals may administer oaths to witnesses, 

authorize depositions and discovery proceedings, and require by 

subpoena the attendance of witnesses, and production of books 

and papers, for the taking of testimony or evidence by deposition 
H. R. 1107—147 

or in the hearing of an appeal by the agency board. In case of 

contumacy or refusal to obey a subpoena by a person who resides, 

is found, or transacts business within the jurisdiction of a United 

States district court, the court, upon application of the agency 

board through the Attorney General, or upon application by the 

board of contract appeals of the Tennessee Valley Authority, shall 

have jurisdiction to issue the person an order requiring the person 

to appear before the agency board or a member of the agency 

board, to produce evidence or to give testimony, or both. Any failure 

of the person to obey the order of the court may be punished 

by the court as contempt of court. 

(g) DECISIONS.—An agency board shall— 

(1) to the fullest extent practicable provide informal, expeditious, and inexpensive resolution of disputes; 

(2) issue a decision in writing or take other appropriate 

action on each appeal submitted; and 

(3) mail or otherwise furnish a copy of the decision to the 

contractor and the contracting officer. 

§ 7106. Agency board procedures for accelerated and small 

claims 

(a) ACCELERATED PROCEDURE WHERE $100,000 OR LESS IN DISPUTE.—The rules of each agency board shall include a procedure 

for the accelerated disposition of any appeal from a decision of 

a contracting officer where the amount in dispute is $100,000 or 

less. The accelerated procedure is applicable at the sole election 

of the contractor. An appeal under the accelerated procedure shall 

be resolved, whenever possible, within 180 days from the date 

the contractor elects to use the procedure. 

(b) SMALL CLAIMS PROCEDURE.— 

(1) IN GENERAL.—The rules of each agency board shall include 

a procedure for the expedited disposition of any appeal from 

a decision of a contracting officer where the amount in dispute 

is $50,000 or less, or in the case of a small business concern 

(as defined in the Small Business Act (15 U.S.C. 631 et seq.) 

and regulations under that Act), $150,000 or less. The small 

claims procedure is applicable at the sole election of the contractor. 

(2) SIMPLIFIED RULES OF PROCEDURE.—The small claims 

procedure shall provide for simplified rules of procedure to 

facilitate the decision of any appeal. An appeal under the 

small claims procedure may be decided by a single member 

of the agency board with such concurrences as may be provided 

by rule or regulation. 

(3) TIME OF DECISION.—An appeal under the small claims 

procedure shall be resolved, whenever possible, within 120 days 

from the date the contractor elects to use the procedure. 

(4) FINALITY OF DECISION.—A decision against the Federal 

Government or against the contractor reached under the small 

claims procedure is final and conclusive and may not be set 

aside except in cases of fraud. 

(5) NO PRECEDENT.—Administrative determinations and final 

decisions under this subsection have no value as precedent 

for future cases under this chapter. 

(6) REVIEW OF REQUISITE AMOUNTS IN CONTROVERSY.—The 

Administrator, from time to time, may review the dollar 

amounts specified in paragraph (1) and adjust the amounts 
H. R. 1107—148 

in accordance with economic indexes selected by the Administrator. 

§ 7107. Judicial review of agency board decisions 

(a) REVIEW.— (1) IN GENERAL.—The decision of an agency board is final, 

except that— 

(A) a contractor may appeal the decision to the United 

States Court of Appeals for the Federal Circuit within 

120 days from the date the contractor receives a copy 

of the decision; or 

(B) if an agency head determines that an appeal should 

be taken, the agency head, with the prior approval of 

the Attorney General, may transmit the decision to the 

United States Court of Appeals for the Federal Circuit 

for judicial review under section 1295 of title 28, within 

120 days from the date the agency receives a copy of 

the decision. 

(2) TENNESSEE VALLEY AUTHORITY.—Notwithstanding paragraph (1), a decision of the board of contract appeals of the 

Tennessee Valley Authority is final, except that— 

(A) a contractor may appeal the decision to a United 

States district court pursuant to section 1337 of title 28, 

within 120 days from the date the contractor receives a 

copy of the decision; or 

(B) the Tennessee Valley Authority may appeal the decision to a United States district court pursuant to section 

1337 of title 28, within 120 days from the date of the 

decision. 

(3) REVIEW OF ARBITRATION.—An award by an arbitrator 

under this chapter shall be reviewed pursuant to sections 9 

to 13 of title 9, except that the court may set aside or limit 

any award that is found to violate limitations imposed by 

Federal statute. 

(b) FINALITY OF AGENCY BOARD DECISIONS ON QUESTIONS OF

LAW AND FACT.—Notwithstanding any contract provision, regulation, or rule of law to the contrary, in an appeal by a contractor 

or the Federal Government from the decision of an agency board 

pursuant to subsection (a)— 

(1) the decision of the agency board on a question of law 

is not final or conclusive; but 

(2) the decision of the agency board on a question of fact 

is final and conclusive and may not be set aside unless the 

decision is— 

(A) fraudulent, arbitrary, or capricious; 

(B) so grossly erroneous as to necessarily imply bad 

faith; or 

(C) not supported by substantial evidence. 

(c) REMAND.—In an appeal by a contractor or the Federal Government from the decision of an agency board pursuant to subsection 

(a), the court may render an opinion and judgment and remand 

the case for further action by the agency board or by the executive 

agency as appropriate, with direction the court considers just and 

proper. 

(d) CONSOLIDATION.—If 2 or more actions arising from one contract are filed in the United States Court of Federal Claims and 

one or more agency boards, for the convenience of parties or witnesses or in the interest of justice, the United States Court of 
H. R. 1107—149 

Federal Claims may order the consolidation of the actions in that 

court or transfer any actions to or among the agency boards 

involved. 

(e) JUDGMENTS AS TO FEWER THAN ALL CLAIMS OR PARTIES.— In an action filed pursuant to this chapter involving 2 or more 

claims, counterclaims, cross-claims, or third-party claims, and where 

a portion of one of the claims can be divided for purposes of 

decision or judgment, and in any action where multiple parties 

are involved, the court, whenever appropriate, may enter a judgment as to one or more but fewer than all of the claims or portions 

of claims or parties. 

(f) ADVISORY OPINIONS.— (1) IN GENERAL.—Whenever an action involving an issue 

described in paragraph (2) is pending in a district court of 

the United States, the district court may request an agency 

board to provide the court with an advisory opinion on the 

matters of contract interpretation under consideration. 

(2) APPLICABLE ISSUE.—An issue referred to in paragraph 

(1) is any issue that could be the proper subject of a final 

decision of a contracting officer appealable under this chapter. 

(3) REFERRAL TO AGENCY BOARD WITH JURISDICTION.—A district court shall direct a request under paragraph (1) to the 

agency board having jurisdiction under this chapter to adjudicate appeals of contract claims under the contract being interpreted by the court. 

(4) TIMELY RESPONSE.—After receiving a request for an 

advisory opinion under paragraph (1), an agency board shall 

provide the advisory opinion in a timely manner to the district 

court making the request. 

§ 7108. Payment of claims 

(a) JUDGMENTS.—Any judgment against the Federal Government 

on a claim under this chapter shall be paid promptly in accordance 

with the procedures provided by section 1304 of title 31. 

(b) MONETARY AWARDS.—Any monetary award to a contractor 

by an agency board shall be paid promptly in accordance with 

the procedures contained in subsection (a). 

(c) REIMBURSEMENT.—Payments made pursuant to subsections 

(a) and (b) shall be reimbursed to the fund provided by section 

1304 of title 31 by the agency whose appropriations were used 

for the contract out of available amounts or by obtaining additional 

appropriations for purposes of reimbursement. 

(d) TENNESSEE VALLEY AUTHORITY.— (1) JUDGMENTS.—Notwithstanding subsections (a) to (c), any 

judgment against the Tennessee Valley Authority on a claim 

under this chapter shall be paid promptly in accordance with 

section 9(b) of the Tennessee Valley Authority Act of 1933 

(16 U.S.C. 831h(b)). 

(2) MONETARY AWARDS.—Notwithstanding subsections (a) to 

(c), any monetary award to a contractor by the board of contract 

appeals of the Tennessee Valley Authority shall be paid in 

accordance with section 9(b) of the Tennessee Valley Authority 

Act of 1933 (16 U.S.C. 831h(b)). 

§ 7109. Interest 

(a) PERIOD.— 

(1) IN GENERAL.—Interest on an amount found due a contractor on a claim shall be paid to the contractor for the 
H. R. 1107—150 

period beginning with the date the contracting officer receives 

the contractor’s claim, pursuant to section 7103(a) of this title, 

until the date of payment of the claim. 

(2) DEFECTIVE CERTIFICATION.—On a claim for which the 

certification under section 7103(b)(1) of this title is found to 

be defective, any interest due under this section shall be paid 

for the period beginning with the date the contracting officer 

initially receives the contractor’s claim until the date of payment of the claim. 

(b) RATE.—Interest shall accrue and be paid at a rate which 

the Secretary of the Treasury shall specify as applicable for each 

successive 6-month period. The rate shall be determined by the 

Secretary of the Treasury taking into consideration current private 

commercial rates of interest for new loans maturing in approximately 5 years. 

Subtitle IV—Miscellaneous 

Chapter Sec. 

81. Drug-Free Workplace ............................................................................. 8101 

83. Buy American ........................................................................................... 8301 

85. Committee for Purchase From People Who Are Blind or Severely Disabled.8501 

87. Kickbacks .................................................................................................. 8701 

CHAPTER 81—DRUG-FREE WORKPLACE 

Sec. 

8101. Definitions and construction. 

8102. Drug-free workplace requirements for Federal contractors. 

8103. Drug-free workplace requirements for Federal grant recipients. 

8104. Employee sanctions and remedies. 

8105. Waiver. 

8106. Regulations. 

§ 8101. Definitions and construction 

(a) DEFINITIONS.—In this chapter: 

(1) CONTRACTOR.—The term ‘‘contractor’’ means the department, division, or other unit of a person responsible for the 

performance under the contract. 

(2) CONTROLLED SUBSTANCE.—The term ‘‘controlled substance’’ means a controlled substance in schedules I through 

V of section 202 of the Comprehensive Drug Abuse Prevention 

and Control Act of 1970 (21 U.S.C. 812). 

(3) CONVICTION.—The term ‘‘conviction’’ means a finding of 

guilt (including a plea of nolo contendere), an imposition of 

sentence, or both, by a judicial body charged with the responsibility to determine violations of Federal or State criminal drug 

statutes. 

(4) CRIMINAL DRUG STATUTE.—The term ‘‘criminal drug 

statute’’ means a criminal statute involving manufacture, distribution, dispensation, use, or possession of a controlled substance. 

(5) DRUG-FREE WORKPLACE.—The term ‘‘drug-free workplace’’ 

means a site of an entity— 

(A) for the performance of work done in connection with 

a specific contract or grant described in section 8102 or 

8103 of this title; and 

(B) at which employees of the entity are prohibited from 

engaging in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance in 
H. R. 1107—151 

accordance with the requirements of the Anti-Drug Abuse 

Act of 1988 (Public Law 100–690, 102 Stat. 4181). 

(6) EMPLOYEE.—The term ‘‘employee’’ means the employee 

of a contractor or grantee directly engaged in the performance 

of work pursuant to the contract or grant described in section 

8102 or 8103 of this title. 

(7) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means an 

agency as defined in section 552(f) of title 5. 

(8) GRANTEE.—The term ‘‘grantee’’ means the department, 

division, or other unit of a person responsible for the performance under the grant. 

(b) CONSTRUCTION.—This chapter does not require law enforcement agencies to comply with this chapter if the head of the 

agency determines it would be inappropriate in connection with 

the agency’s undercover operations. 

§ 8102. Drug-free workplace requirements for Federal contractors 

(a) IN GENERAL.— (1) PERSONS OTHER THAN INDIVIDUALS.—A person other than 

an individual shall not be considered a responsible source (as 

defined in section 113 of this title) for the purposes of being 

awarded a contract for the procurement of any property or 

services of a value greater than the simplified acquisition 

threshold (as defined in section 134 of this title) by a Federal 

agency, other than a contract for the procurement of commercial 

items (as defined in section 103 of this title), unless the person 

agrees to provide a drug-free workplace by— 

(A) publishing a statement notifying employees that the 

unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the 

person’s workplace and specifying the actions that will 

be taken against employees for violations of the prohibition; 

(B) establishing a drug-free awareness program to inform 

employees about— 

(i) the dangers of drug abuse in the workplace; 

(ii) the person’s policy of maintaining a drug-free 

workplace; 

(iii) available drug counseling, rehabilitation, and 

employee assistance programs; and 

(iv) the penalties that may be imposed on employees 

for drug abuse violations; 

(C) making it a requirement that each employee to be 

engaged in the performance of the contract be given a 

copy of the statement required by subparagraph (A); 

(D) notifying the employee in the statement required 

by subparagraph (A) that as a condition of employment 

on the contract the employee will— 

(i) abide by the terms of the statement; and 

(ii) notify the employer of any criminal drug statute 

conviction for a violation occurring in the workplace 

no later than 5 days after the conviction; 

(E) notifying the contracting agency within 10 days after 

receiving notice under subparagraph (D)(ii) from an 

employee or otherwise receiving actual notice of a conviction; 

(F) imposing a sanction on, or requiring the satisfactory 

participation in a drug abuse assistance or rehabilitation 
H. R. 1107—152 

program by, any employee who is convicted, as required 

by section 8104 of this title; and 

(G) making a good faith effort to continue to maintain 

a drug-free workplace through implementation of subparagraphs (A) to (F). 

(2) INDIVIDUALS.—A Federal agency shall not make a contract 

with an individual unless the individual agrees not to engage 

in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance in the performance of 

the contract. 

(b) SUSPENSION, TERMINATION, OR DEBARMENT OF CONTRACTOR.— (1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBAR- MENT.—Payment under a contract awarded by a Federal agency 

may be suspended and the contract may be terminated, and 

the contractor or individual who made the contract with the 

agency may be suspended or debarred in accordance with the 

requirements of this section, if the head of the agency determines that— 

(A) the contractor is violating, or has violated, the 

requirements of subparagraph (A), (B), (C), (D), (E), or 

(F) of subsection (a)(1); or 

(B) the number of employees of the contractor who have 

been convicted of violations of criminal drug statutes for 

violations occurring in the workplace indicates that the 

contractor has failed to make a good faith effort to provide 

a drug-free workplace as required by subsection (a). 

(2) CONDUCT OF SUSPENSION, TERMINATION, AND DEBARMENT

PROCEEDINGS.—A contracting officer who determines in writing 

that cause for suspension of payments, termination, or suspension or debarment exists shall initiate an appropriate action, 

to be conducted by the agency concerned in accordance with 

the Federal Acquisition Regulation and applicable agency procedures. The Federal Acquisition Regulation shall be revised to 

include rules for conducting suspension and debarment proceedings under this subsection, including rules providing notice, 

opportunity to respond in writing or in person, and other procedures as may be necessary to provide a full and fair proceeding 

to a contractor or individual. 

(3) EFFECT OF DEBARMENT.—A contractor or individual 

debarred by a final decision under this subsection is ineligible 

for award of a contract by a Federal agency, and for participation in a future procurement by a Federal agency, for a period 

specified in the decision, not to exceed 5 years. 

§ 8103. Drug-free workplace requirements for Federal grant 

recipients 

(a) IN GENERAL.— 

(1) PERSONS OTHER THAN INDIVIDUALS.—A person other than 

an individual shall not receive a grant from a Federal agency 

unless the person agrees to provide a drug-free workplace by— 

(A) publishing a statement notifying employees that the 

unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the 

grantee’s workplace and specifying the actions that will 

be taken against employees for violations of the prohibition; 

(B) establishing a drug-free awareness program to inform 

employees about— 

(i) the dangers of drug abuse in the workplace; 
H. R. 1107—153 

(ii) the grantee’s policy of maintaining a drug-free 

workplace; 

(iii) available drug counseling, rehabilitation, and 

employee assistance programs; and 

(iv) the penalties that may be imposed on employees 

for drug abuse violations; 

(C) making it a requirement that each employee to be 

engaged in the performance of the grant be given a copy 

of the statement required by subparagraph (A); 

(D) notifying the employee in the statement required 

by subparagraph (A) that as a condition of employment 

in the grant the employee will— 

(i) abide by the terms of the statement; and 

(ii) notify the employer of any criminal drug statute 

conviction for a violation occurring in the workplace 

no later than 5 days after the conviction; 

(E) notifying the granting agency within 10 days after 

receiving notice under subparagraph (D)(ii) from an 

employee or otherwise receiving actual notice of a conviction; 

(F) imposing a sanction on, or requiring the satisfactory 

participation in a drug abuse assistance or rehabilitation 

program by, any employee who is convicted, as required 

by section 8104 of this title; and 

(G) making a good faith effort to continue to maintain 

a drug-free workplace through implementation of subparagraphs (A) to (F). 

(2) INDIVIDUALS.—A Federal agency shall not make a grant 

to an individual unless the individual agrees not to engage 

in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance in conducting an activity 

with the grant. 

(b) SUSPENSION, TERMINATION, OR DEBARMENT OF GRANTEE.— 

(1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBAR- MENT.—Payment under a grant awarded by a Federal agency 

may be suspended and the grant may be terminated, and 

the grantee may be suspended or debarred, in accordance with 

the requirements of this section, if the head of the agency 

or the official designee of the head of the agency determines 

in writing that— 

(A) the grantee is violating, or has violated, the requirements of subparagraph (A), (B), (C), (D), (E), (F), or (G) 

of subsection (a)(1); or 

(B) the number of employees of the grantee who have 

been convicted of violations of criminal drug statutes for 

violations occurring in the workplace indicates that the 

grantee has failed to make a good faith effort to provide 

a drug-free workplace as required by subsection (a)(1). 

(2) CONDUCT OF SUSPENSION, TERMINATION, AND DEBARMENT

PROCEEDINGS.—A suspension of payments, termination, or 

suspension or debarment proceeding subject to this subsection 

shall be conducted in accordance with applicable law, including 

Executive Order 12549 or any superseding executive order and 

any regulations prescribed to implement the law or executive 

order. 

(3) EFFECT OF DEBARMENT.—A grantee debarred by a final 

decision under this subsection is ineligible for award of a grant 

by a Federal agency, and for participation in a future grant 
H. R. 1107—154 

by a Federal agency, for a period specified in the decision, 

not to exceed 5 years. 

§ 8104. Employee sanctions and remedies 

Within 30 days after receiving notice from an employee of a 

conviction pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) 

of this title, a contractor or grantee shall— 

(1) take appropriate personnel action against the employee, 

up to and including termination; or 

(2) require the employee to satisfactorily participate in a 

drug abuse assistance or rehabilitation program approved for 

those purposes by a Federal, State, or local health, law enforcement, or other appropriate agency. 

§ 8105. Waiver 

(a) IN GENERAL.—The head of an agency may waive a suspension 

of payments, termination of the contract or grant, or suspension 

or debarment of a contractor or grantee under this chapter with 

respect to a particular contract or grant if— 

(1) in the case of a contract, the head of the agency determines 

under section 8102(b)(1) of this title, after a final determination 

is issued under section 8102(b)(1), that suspension of payments, 

termination of the contract, suspension or debarment of the 

contractor, or refusal to permit a person to be treated as a 

responsible source for a contract would severely disrupt the 

operation of the agency to the detriment of the Federal Government or the general public; or 

(2) in the case of a grant, the head of the agency determines 

that suspension of payments, termination of the grant, or 

suspension or debarment of the grantee would not be in the 

public interest. 

(b) WAIVER AUTHORITY MAY NOT BE DELEGATED.—The authority 

of the head of an agency under this section to waive a suspension, 

termination, or debarment shall not be delegated. 

§ 8106. Regulations 

Government-wide regulations governing actions under this 

chapter shall be issued pursuant to division B of subtitle I of 

this title. 

CHAPTER 83—BUY AMERICAN 

Sec. 

8301. Definitions. 

8302. American materials required for public use. 

8303. Contracts for public works. 

8304. Waiver rescission. 

8305. Annual report. 

§ 8301. Definitions 

In this chapter: 

(1) PUBLIC BUILDING, PUBLIC USE, AND PUBLIC WORK.—The 

terms ‘‘public building’’, ‘‘public use’’, and ‘‘public work’’ mean 

a public building of, use by, and a public work of, the Federal 

Government, the District of Columbia, Puerto Rico, American 

Samoa, and the Virgin Islands. 

(2) UNITED STATES.—The term ‘‘United States’’ includes any 

place subject to the jurisdiction of the United States. 
H. R. 1107—155 

§ 8302. American materials required for public use 

(a) IN GENERAL.— 

(1) ALLOWABLE MATERIALS.—Only unmanufactured articles, 

materials, and supplies that have been mined or produced 

in the United States, and only manufactured articles, materials, 

and supplies that have been manufactured in the United States 

substantially all from articles, materials, or supplies mined, 

produced, or manufactured in the United States, shall be 

acquired for public use unless the head of the department 

or independent establishment concerned determines their 

acquisition to be inconsistent with the public interest or their 

cost to be unreasonable. 

(2) EXCEPTIONS.—This section does not apply— 

(A) to articles, materials, or supplies for use outside 

the United States; 

(B) if articles, materials, or supplies of the class or kind 

to be used, or the articles, materials, or supplies from 

which they are manufactured, are not mined, produced, 

or manufactured in the United States in sufficient and 

reasonably available commercial quantities and are not 

of a satisfactory quality; and 

(C) to manufactured articles, materials, or supplies procured under any contract with an award value that is 

not more than the micro-purchase threshold under section 

1902 of this title. 

(b) REPORTS.— 

(1) IN GENERAL.—Not later than 180 days after the end 

of each of fiscal years 2009 through 2011, the head of each 

Federal agency shall submit to the Committee on Homeland 

Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House 

of Representatives a report on the amount of the acquisitions 

made by the agency in that fiscal year of articles, materials, 

or supplies purchased from entities that manufacture the articles, materials, or supplies outside of the United States. 

(2) CONTENTS OF REPORT.—The report required by paragraph 

(1) shall separately include, for the fiscal year covered by the 

report— 

(A) the dollar value of any articles, materials, or supplies 

that were manufactured outside the United States; 

(B) an itemized list of all waivers granted with respect 

to the articles, materials, or supplies under this chapter, 

and a citation to the treaty, international agreement, or 

other law under which each waiver was granted; 

(C) if any articles, materials, or supplies were acquired 

from entities that manufacture articles, materials, or supplies outside the United States, the specific exception under 

this section that was used to purchase the articles, materials, or supplies; and 

(D) a summary of— 

(i) the total procurement funds expended on articles, 

materials, and supplies manufactured inside the 

United States; and 

(ii) the total procurement funds expended on articles, 

materials, and supplies manufactured outside the 

United States. 
H. R. 1107—156 

(3) PUBLIC AVAILABILITY.—The head of each Federal agency 

submitting a report under paragraph (1) shall make the report 

publicly available to the maximum extent practicable. 

(4) EXCEPTION FOR INTELLIGENCE COMMUNITY.—This subsection shall not apply to acquisitions made by an agency, 

or component of an agency, that is an element of the intelligence 

community as specified in, or designated under, section 3 of 

the National Security Act of 1947 (50 U.S.C. 401a). 

§ 8303. Contracts for public works 

(a) IN GENERAL.—Every contract for the construction, alteration, 

or repair of any public building or public work in the United 

States shall contain a provision that in the performance of the 

work the contractor, subcontractors, material men, or suppliers 

shall use only— 

(1) unmanufactured articles, materials, and supplies that 

have been mined or produced in the United States; and 

(2) manufactured articles, materials, and supplies that have 

been manufactured in the United States substantially all from 

articles, materials, or supplies mined, produced, or manufactured in the United States. 

(b) EXCEPTIONS.— 

(1) IN GENERAL.—This section does not apply— 

(A) to articles, materials, or supplies for use outside 

the United States; 

(B) if articles, materials, or supplies of the class or kind 

to be used, or the articles, materials, or supplies from 

which they are manufactured, are not mined, produced, 

or manufactured in the United States in sufficient and 

reasonably available commercial quantities and are not 

of a satisfactory quality; and 

(C) to manufactured articles, materials, or supplies procured under any contract with an award value that is 

not more than the micro-purchase threshold under section 

1902 of this title. 

(2) PARTICULAR ARTICLE, MATERIAL, OR SUPPLY.—If the head 

of the department or independent establishment making the 

contract finds that it is impracticable to comply with subsection 

(a) for a particular article, material, or supply or that it would 

unreasonably increase the cost, an exception shall be noted 

in the specifications for that article, material, or supply and 

a public record of the findings that justified the exception 

shall be made. 

(3) INCONSISTENT WITH PUBLIC INTEREST.—Subsection (a) 

shall be regarded as requiring the purchase, for public use 

within the United States, of articles, materials, or supplies 

manufactured in the United States in sufficient and reasonably 

available commercial quantities and of a satisfactory quality, 

unless the head of the department or independent establishment concerned determines their purchase to be inconsistent 

with the public interest or their cost to be unreasonable. 

(c) RESULTS OF FAILURE TO COMPLY.—If the head of a department, bureau, agency, or independent establishment that has made 

a contract containing the provision required by subsection (a) finds 

that there has been a failure to comply with the provision in 

the performance of the contract, the head of the department, bureau, 

agency, or independent establishment shall make the findings 
H. R. 1107—157 

public. The findings shall include the name of the contractor obligated under the contract. The contractor, and any subcontractor, 

material man, or supplier associated or affiliated with the contractor, shall not be awarded another contract for the construction, 

alteration, or repair of any public building or public work for 3 

years after the findings are made public. 

§ 8304. Waiver rescission 

(a) TYPE OF AGREEMENT.—An agreement referred to in subsection 

(b) is a reciprocal defense procurement memorandum of understanding between the United States and a foreign country pursuant 

to which the Secretary of Defense has prospectively waived this 

chapter for certain products in that country. 

(b) DETERMINATION BY SECRETARY OF DEFENSE.—If the Secretary 

of Defense, after consultation with the United States Trade Representative, determines that a foreign country that is party to 

an agreement described in subsection (a) has violated the agreement 

by discriminating against certain types of products produced in 

the United States that are covered by the agreement, the Secretary 

of Defense shall rescind the Secretary’s blanket waiver of this 

chapter with respect to those types of products produced in that 

country. 

§ 8305. Annual report 

Not later than 60 days after the end of each fiscal year, the 

Secretary of Defense shall submit to Congress a report on the 

amount of purchases by the Department of Defense from foreign 

entities in that fiscal year. The report shall separately indicate 

the dollar value of items for which this chapter was waived pursuant 

to— 

(1) a reciprocal defense procurement memorandum of understanding described in section 8304(a) of this title; 

(2) the Trade Agreements Act of 1979 (19 U.S.C. 2501 et 

seq.); or 

(3) an international agreement to which the United States 

is a party. 

CHAPTER 85—COMMITTEE FOR PURCHASE FROM 

PEOPLE WHO ARE BLIND OR SEVERELY DISABLED 

Sec. 

8501. Definitions. 

8502. Committee for Purchase From People Who Are Blind or Severely Disabled. 

8503. Duties and powers of the Committee. 

8504. Procurement requirements for the Federal Government. 

8505. Audit. 

8506. Authorization of appropriations. 

§ 8501. Definitions 

In this chapter: 

(1) BLIND.—The term ‘‘blind’’ refers to an individual or class 

of individuals whose central visual acuity does not exceed 20/ 

200 in the better eye with correcting lenses or whose visual 

acuity, if better than 20/200, is accompanied by a limit to 

the field of vision in the better eye to such a degree that 

its widest diameter subtends an angle of no greater than 20 

degrees. 

(2) COMMITTEE.—The term ‘‘Committee’’ means the Committee for Purchase From People Who Are Blind or Severely 

Disabled established under section 8502 of this title. 
H. R. 1107—158 

(3) DIRECT LABOR.—The term ‘‘direct labor’’— 

(A) includes all work required for preparation, processing, 

and packing of a product, or work directly relating to 

the performance of a service; but 

(B) does not include supervision, administration, inspection, or shipping. 

(4) ENTITY OF THE FEDERAL GOVERNMENT AND FEDERAL

GOVERNMENT.—The terms ‘‘entity of the Federal Government’’ 

and ‘‘Federal Government’’ include an entity of the legislative 

or judicial branch, a military department or executive agency 

(as defined in sections 102 and 105 of title 5, respectively), 

the United States Postal Service, and a nonappropriated fund 

instrumentality under the jurisdiction of the Armed Forces. 

(5) OTHER SEVERELY DISABLED.—The term ‘‘other severely 

disabled’’ means an individual or class of individuals under 

a physical or mental disability, other than blindness, which 

(according to criteria established by the Committee after consultation with appropriate entities of the Federal Government 

and taking into account the views of non-Federal Government 

entities representing the disabled) constitutes a substantial 

handicap to employment and is of a nature that prevents the 

individual from currently engaging in normal competitive 

employment. 

(6) QUALIFIED NONPROFIT AGENCY FOR OTHER SEVERELY DISABLED.—The term ‘‘qualified nonprofit agency for other severely 

disabled’’ means an agency— 

(A)(i) organized under the laws of the United States 

or a State; 

(ii) operated in the interest of severely disabled individuals who are not blind; and 

(iii) of which no part of the net income of the agency 

inures to the benefit of a shareholder or other individual; 

(B) that complies with any applicable occupational health 

and safety standard prescribed by the Secretary of Labor; 

and 

(C) that in the production of products and in the provision 

of services (whether or not the products or services are 

procured under this chapter) during the fiscal year employs 

blind or other severely disabled individuals for at least 

75 percent of the hours of direct labor required for the 

production or provision of the products or services. 

(7) QUALIFIED NONPROFIT AGENCY FOR THE BLIND.—The term 

‘‘qualified nonprofit agency for the blind’’ means an agency— 

(A)(i) organized under the laws of the United States 

or a State; 

(ii) operated in the interest of blind individuals; and 

(iii) of which no part of the net income of the agency 

inures to the benefit of a shareholder or other individual; 

(B) that complies with any applicable occupational health 

and safety standard prescribed by the Secretary of Labor; 

and 

(C) that in the production of products and in the provision 

of services (whether or not the products or services are 

procured under this chapter) during the fiscal year employs 

blind individuals for at least 75 percent of the hours of 

direct labor required for the production or provision of 

the products or services. 
H. R. 1107—159 

(8) SEVERELY DISABLED INDIVIDUAL.—The term ‘‘severely disabled individual’’ means an individual or class of individuals 

under a physical or mental disability, other than blindness, 

which (according to criteria established by the Committee after 

consultation with appropriate entities of the Federal Government and taking into account the views of non-Federal Government entities representing the disabled) constitutes a substantial handicap to employment and is of a nature that prevents 

the individual from currently engaging in normal competitive 

employment. 

(9) STATE.—The term ‘‘State’’ includes the District of 

Columbia, Puerto Rico, the Virgin Islands, Guam, American 

Samoa, and the Northern Mariana Islands. 

§ 8502. Committee for Purchase From People Who Are Blind 

or Severely Disabled 

(a) ESTABLISHMENT.—There is a Committee for Purchase From 

People Who Are Blind or Severely Disabled. 

(b) COMPOSITION.—The Committee consists of 15 members 

appointed by the President as follows: 

(1) One officer or employee from each of the following, nominated by the head of the department or agency: 

(A) The Department of Agriculture. 

(B) The Department of Defense. 

(C) The Department of the Army. 

(D) The Department of the Navy. 

(E) The Department of the Air Force. 

(F) The Department of Education. 

(G) The Department of Commerce. 

(H) The Department of Veterans Affairs. 

(I) The Department of Justice. 

(J) The Department of Labor. 

(K) The General Services Administration. 

(2) One member from individuals who are not officers or 

employees of the Federal Government and who are conversant 

with the problems incident to the employment of the blind. 

(3) One member from individuals who are not officers or 

employees of the Federal Government and who are conversant 

with the problems incident to the employment of other severely 

disabled individuals. 

(4) One member from individuals who are not officers or 

employees of the Federal Government and who represent blind 

individuals employed in qualified nonprofit agencies for the 

blind. 

(5) One member from individuals who are not officers or 

employees of the Federal Government and who represent 

severely disabled individuals (other than blind individuals) 

employed in qualified nonprofit agencies for other severely disabled individuals. 

(c) TERMS OF OFFICE.—Members appointed under paragraph (2), 

(3), (4), or (5) of subsection (b) shall be appointed for terms of 

5 years and may be reappointed if the member meets the qualifications prescribed by those paragraphs. 

(d) CHAIRMAN.—The members of the Committee shall elect one 

of the members to be Chairman. 

(e) VACANCY.— 
H. R. 1107—160 

(1) MANNER IN WHICH FILLED.—A vacancy in the membership 

of the Committee shall be filled in the manner in which the 

original appointment was made. 

(2) UNFULFILLED TERM.—A member appointed under paragraph (2), (3), (4), or (5) of subsection (b) to fill a vacancy 

occurring prior to the expiration of the term for which the 

predecessor was appointed shall be appointed only for the 

remainder of the term. The member may serve after the expiration of a term until a successor takes office. 

(f) PAY AND TRAVEL EXPENSES.— (1) AMOUNT TO WHICH MEMBERS ARE ENTITLED.—Except as 

provided in paragraph (2), members of the Committee are entitled to receive the daily equivalent of the maximum annual 

rate of basic pay payable for level IV of the Executive Schedule 

for each day (including travel-time) during which they perform 

services for the Committee. A member is entitled to travel 

expenses, including a per diem allowance instead of subsistence, 

as provided under section 5703 of title 5. 

(2) OFFICERS OR EMPLOYEES OF THE FEDERAL GOVERNMENT.— Members who are officers or employees of the Federal Government may not receive additional pay because of their service 

on the Committee. 

(g) STAFF.— 

(1) APPOINTMENT AND COMPENSATION.—Subject to rules the 

Committee may adopt and to chapters 33 and 51 and subchapter III of chapter 53 of title 5, the Chairman may appoint 

and fix the pay of personnel the Committee determines are 

necessary to assist it in carrying out this chapter. 

(2) PERSONNEL FROM OTHER ENTITIES.—On request of the 

Committee, the head of an entity of the Federal Government 

may detail, on a reimbursable basis, any personnel of the 

entity to the Committee to assist it in carrying out this chapter. 

(h) OBTAINING OFFICIAL INFORMATION.—The Committee may 

secure directly from an entity of the Federal Government information necessary to enable it to carry out this chapter. On request 

of the Chairman, the head of the entity shall furnish the information 

to the Committee. 

(i) ADMINISTRATIVE SUPPORT SERVICES.—The Administrator of 

General Services shall provide to the Committee, on a reimbursable 

basis, administrative support services the Committee requests. 

(j) ANNUAL REPORT.—Not later than December 31 of each year, 

the Committee shall transmit to the President a report that includes 

the names of the Committee members serving in the prior fiscal 

year, the dates of Committee meetings in that year, a description 

of the activities of the Committee under this chapter in that year, 

and any recommendations for changes in this chapter which the 

Committee determines are necessary. 

§ 8503. Duties and powers of the Committee 

(a) PROCUREMENT LIST.— 

(1) MAINTENANCE OF LIST.—The Committee shall maintain 

and publish in the Federal Register a procurement list. The 

list shall include the following products and services determined 

by the Committee to be suitable for the Federal Government 

to procure pursuant to this chapter: 

(A) Products produced by a qualified nonprofit agency 

for the blind or by a qualified nonprofit agency for other 

severely disabled. 
H. R. 1107—161 

(B) The services those agencies provide. 

(2) CHANGES TO LIST.—The Committee may, by rule made 

in accordance with the requirements of section 553(b) to (e) 

of title 5, add to and remove from the procurement list products 

so produced and services so provided. 

(b) FAIR MARKET PRICE.—The Committee shall determine the 

fair market price of products and services contained on the procurement list that are offered for sale to the Federal Government 

by a qualified nonprofit agency for the blind or a qualified nonprofit 

agency for other severely disabled. The Committee from time to 

time shall revise its price determinations with respect to those 

products and services in accordance with changing market conditions. 

(c) CENTRAL NONPROFIT AGENCY OR AGENCIES.—The Committee 

shall designate a central nonprofit agency or agencies to facilitate 

the distribution, by direct allocation, subcontract, or any other 

means, of orders of the Federal Government for products and services on the procurement list among qualified nonprofit agencies 

for the blind or qualified nonprofit agencies for other severely 

disabled. 

(d) REGULATIONS.—The Committee— 

(1) may prescribe regulations regarding specifications for 

products and services on the procurement list, the time of 

their delivery, and other matters as necessary to carry out 

this chapter; and 

(2) shall prescribe regulations providing that when the Federal Government purchases products produced and offered for 

sale by qualified nonprofit agencies for the blind or qualified 

nonprofit agencies for other severely disabled, priority shall 

be given to products produced and offered for sale by qualified 

nonprofit agencies for the blind. 

(e) STUDY AND EVALUATION OF ACTIVITIES.—The Committee shall 

make a continuing study and evaluation of its activities under 

this chapter to ensure effective and efficient administration of this 

chapter. The Committee on its own or in cooperation with other 

public or nonprofit private agencies may study— 

(1) problems related to the employment of the blind and 

other severely disabled individuals; and 

(2) the development and adaptation of production methods 

that would enable a greater utilization of the blind and other 

severely disabled individuals. 

§ 8504. Procurement requirements for the Federal Government 

(a) IN GENERAL.—An entity of the Federal Government intending 

to procure a product or service on the procurement list referred 

to in section 8503 of this title shall procure the product or service 

from a qualified nonprofit agency for the blind or a qualified nonprofit agency for other severely disabled in accordance with regulations of the Committee and at the price the Committee establishes 

if the product or service is available within the period required 

by the entity. 

(b) EXCEPTION.—This section does not apply to the procurement 

of a product that is available from an industry established under 

chapter 307 of title 18 and that is required under section 4124 

of title 18 to be procured from that industry. 
H. R. 1107—162 

§ 8505. Audit 

For the purpose of audit and examination, the Comptroller General shall have access to the books, documents, papers, and other 

records of— 

(1) the Committee and of each central nonprofit agency the 

Committee designates under section 8503(c) of this title; and 

(2) qualified nonprofit agencies for the blind and qualified 

nonprofit agencies for other severely disabled that have sold 

products or services under this chapter to the extent those 

books, documents, papers, and other records relate to the activities of the agency in a fiscal year in which a sale was made 

under this chapter. 

§ 8506. Authorization of appropriations 

Necessary amounts may be appropriated to the Committee to 

carry out this chapter. 

CHAPTER 87—KICKBACKS 

Sec. 

8701. Definitions. 

8702. Prohibited conduct. 

8703. Contractor responsibilities. 

8704. Inspection authority. 

8705. Administrative offsets. 

8706. Civil actions. 

8707. Criminal penalties. 

§ 8701. Definitions 

In this chapter: 

(1) CONTRACTING AGENCY.—The term ‘‘contracting agency’’, 

when used with respect to a prime contractor, means a department, agency, or establishment of the Federal Government 

that enters into a prime contract with a prime contractor. 

(2) KICKBACK.—The term ‘‘kickback’’ means any money, fee, 

commission, credit, gift, gratuity, thing of value, or compensation of any kind that is provided to a prime contractor, prime 

contractor employee, subcontractor, or subcontractor employee 

to improperly obtain or reward favorable treatment in connection with a prime contract or a subcontract relating to a prime 

contract. 

(3) PERSON.—The term ‘‘person’’ means a corporation, partnership, business association of any kind, trust, joint-stock 

company, or individual. 

(4) PRIME CONTRACT.—The term ‘‘prime contract’’ means a 

contract or contractual action entered into by the Federal 

Government to obtain supplies, materials, equipment, or services of any kind. 

(5) PRIME CONTRACTOR.—The term ‘‘prime contractor’’ means 

a person that has entered into a prime contract with the 

Federal Government. 

(6) PRIME CONTRACTOR EMPLOYEE.—The term ‘‘prime contractor employee’’ means an officer, partner, employee, or agent 

of a prime contractor. 

(7) SUBCONTRACT.—The term ‘‘subcontract’’ means a contract 

or contractual action entered into by a prime contractor or 

subcontractor to obtain supplies, materials, equipment, or services of any kind under a prime contract. 

(8) SUBCONTRACTOR.—The term ‘‘subcontractor’’— 
H. R. 1107—163 

(A) means a person, other than the prime contractor, 

that offers to furnish or furnishes supplies, materials, 

equipment, or services of any kind under a prime contract 

or a subcontract entered into in connection with the prime 

contract; and 

(B) includes a person that offers to furnish or furnishes 

general supplies to the prime contractor or a higher tier 

subcontractor. 

(9) SUBCONTRACTOR EMPLOYEE.—The term ‘‘subcontractor 

employee’’ means an officer, partner, employee, or agent of 

a subcontractor. 

§ 8702. Prohibited conduct 

A person may not— 

(1) provide, attempt to provide, or offer to provide a kickback; 

(2) solicit, accept, or attempt to accept a kickback; or 

(3) include the amount of a kickback prohibited by paragraph 

(1) or (2) in the contract price— 

(A) a subcontractor charges a prime contractor or a 

higher tier subcontractor; or 

(B) a prime contractor charges the Federal Government. 

§ 8703. Contractor responsibilities 

(a) REQUIREMENTS INCLUDED IN CONTRACTS.—Each contracting 

agency shall include in each prime contract awarded by the agency 

a requirement that the prime contractor shall— 

(1) have in place and follow reasonable procedures designed 

to prevent and detect violations of section 8702 of this title 

in its own operations and direct business relationships; and 

(2) cooperate fully with a Federal Government agency investigating a violation of section 8702 of this title. 

(b) FULL COOPERATION REQUIRED.—Notwithstanding subsection 

(d), a prime contractor shall cooperate fully with a Federal Government agency investigating a violation of section 8702 of this title. 

(c) REPORTING REQUIREMENT.— (1) IN GENERAL.—A prime contractor or subcontractor that 

has reasonable grounds to believe that a violation of section 

8702 of this title may have occurred shall promptly report 

the possible violation in writing to the inspector general of 

the contracting agency, the head of the contracting agency 

if the agency does not have an inspector general, or the Attorney 

General. 

(2) SUPPLYING INFORMATION AS FAVORABLE EVIDENCE.—In an 

administrative or contractual action to suspend or debar a 

person who is eligible to enter into contracts with the Federal 

Government, evidence that the person has supplied information 

to the Federal Government pursuant to paragraph (1) is favorable evidence of the person’s responsibility for the purposes 

of Federal procurement laws and regulations. 

(d) INAPPLICABILITY TO CERTAIN PRIME CONTRACTS.—Subsection 

(a) does not apply to a prime contract— 

(1) that is not greater than $100,000; or 

(2) for the acquisition of commercial items (as defined in 

section 103 of this title). 

§ 8704. Inspection authority 

(a) IN GENERAL.—To ascertain whether there has been a violation 

of section 8702 of this title with respect to a prime contract, the 
H. R. 1107—164 

Comptroller General and the inspector general of the contracting 

agency, or a representative of the contracting agency designated 

by the head of the agency if the agency does not have an inspector 

general, shall have access to and may inspect the facilities and 

audit the books and records, including electronic data or records, 

of a prime contractor or subcontractor under a prime contract 

awarded by the agency. 

(b) EXCEPTION.—This section does not apply to a prime contract 

for the acquisition of commercial items (as defined in section 103 

of this title). 

§ 8705. Administrative offsets 

(a) DEFINITION.—In this section, the term ‘‘contracting officer’’ 

has the meaning given that term in chapter 71 of this title. 

(b) OFFSET AUTHORITY.—A contracting officer of a contracting 

agency may offset the amount of a kickback provided, accepted, 

or charged in violation of section 8702 of this title against amounts 

the Federal Government owes the prime contractor under the prime 

contract to which the kickback relates. 

(c) DUTIES OF PRIME CONTRACTOR.— 

(1) WITHHOLDING AND PAYING OVER OR RETAINING AMOUNTS.— 

On direction of a contracting officer of a contracting agency 

with respect to a prime contract, the prime contractor shall 

withhold from amounts owed to a subcontractor under a subcontract of the prime contract the amount of a kickback which 

was or may be offset against the prime contractor under subsection (b). The contracting officer may order that amounts 

withheld— 

(A) be paid over to the contracting agency; or 

(B) be retained by the prime contractor if the Federal 

Government has already offset the amount against the 

prime contractor. 

(2) NOTICE.—The prime contractor shall notify the contracting 

officer when an amount is withheld and retained under paragraph (1)(B). 

(d) OFFSET, DIRECTION, OR ORDER IS CLAIM OF FEDERAL GOVERNMENT.—An offset under subsection (b) or a direction or order of 

a contracting officer under subsection (c) is a claim by the Federal 

Government for the purposes of chapter 71 of this title. 

§ 8706. Civil actions 

(a) AMOUNT.—The Federal Government in a civil action may 

recover from a person— 

(1) that knowingly engages in conduct prohibited by section 

8702 of this title a civil penalty equal to— 

(A) twice the amount of each kickback involved in the 

violation; and 

(B) not more than $10,000 for each occurrence of prohibited conduct; and 

(2) whose employee, subcontractor, or subcontractor employee 

violates section 8702 of this title by providing, accepting, or 

charging a kickback a civil penalty equal to the amount of 

that kickback. 

(b) STATUTE OF LIMITATIONS.—A civil action under this section 

must be brought within 6 years after the later of the date on 

which— 

(1) the prohibited conduct establishing the cause of action 

occurred; or 
H. R. 1107—165 

(2) the Federal Government first knew or should reasonably 

have known that the prohibited conduct had occurred. 

§ 8707. Criminal penalties 

A person that knowingly and willfully engages in conduct prohibited by section 8702 of this title shall be fined under title 18, 

imprisoned for not more than 10 years, or both. 

SEC. 4. CONFORMING AMENDMENT. 

Section 2410i(b)(1) of title 10, United States Code, is amended 

by striking ‘‘small purchase threshold’’ and substituting ‘‘simplified 

acquisition threshold’’. 

SEC. 5. CONFORMING CROSS-REFERENCES. 

(a) TITLE 5.—Title 5, United States Code, is amended as follows: 

(1) In section 504(b)(1)(C)(ii)— 

(A) strike ‘‘section 6 of the Contract Disputes Act of 

1978 (41 U.S.C. 605)’’ and substitute ‘‘section 7103 of title 

41’’; and 

(B) strike ‘‘section 8 of that Act (41 U.S.C. 607)’’ and 

substitute ‘‘section 7105 of title 41’’. 

(2) In section 551(1)(H), strike ‘‘chapter 2 of title 41;’’. 

(3) In section 701(b)(1)(H), strike ‘‘chapter 2 of title 41;’’. 

(4) In section 3109(b)(3), strike ‘‘section 5’’ and substitute 

‘‘section 6101(b) to (d)’’. 

(5) In section 3374(c)(2), strike ‘‘section 27 of the Office of 

Federal Procurement Policy Act’’ and substitute ‘‘chapter 21 

of title 41’’. 

(6) In section 3704(b)(2)(G), strike ‘‘section 27 of the Office 

of Federal Procurement Policy Act’’ and substitute ‘‘chapter 

21 of title 41’’. 

(7) In section 4105, strike ‘‘section 5’’ and substitute ‘‘section 

6101(b) to (d)’’. 

(8) In section 5102(c)(30), strike ‘‘section 8 of the Contract 

Disputes Act of 1978’’ and substitute ‘‘section 7105(a)(2), (c)(2), 

or (d)(2) of title 41’’. 

(9) In section 5372a— 

(A) in subsection (a)(1)— 

(i) strike ‘‘section 8 of the Contract Disputes Act 

of 1978’’ and substitute ‘‘section 7105(a)(2), (c)(2), or 

(d)(2) of title 41’’; and 

(ii) strike ‘‘section 42 of the Office of Federal Procurement Policy Act’’ and substitute ‘‘section 7105(b)(2) 

of title 41’’; and 

(B) in subsection (a)(2), strike ‘‘section 8 of the Contract 

Disputes Act of 1978’’ and substitute ‘‘section 7105(a)(1), 

(c)(1), or (d)(1) of title 41’’. 

(10) In section 7342(e)(1), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(11) In section 8709(a), strike ‘‘section 5’’ and substitute ‘‘section 6101(b) to (d)’’. 

(12) In section 8714a(a), strike ‘‘section 5’’ and substitute 

‘‘section 6101(b) to (d)’’. 

(13) In section 8714b(a), strike ‘‘section 5’’ and substitute 

‘‘section 6101(b) to (d)’’. 
H. R. 1107—166 

(14) In section 8714c(a), strike ‘‘section 5’’ and substitute 

‘‘section 6101(b) to (d)’’. 

(15) In section 8902(a), strike ‘‘section 5’’ and substitute ‘‘section 6101(b) to (d)’’. 

(16) In section 8953(a)(1), strike ‘‘section 5’’ and substitute 

‘‘section 6101(b) to (d)’’. 

(17) In section 8983(a)(1), strike ‘‘section 5’’ and substitute 

‘‘section 6101(b) to (d)’’. 

(18) In section 9003— 

(A) in subsection (a), strike ‘‘section 5’’ and substitute 

‘‘section 6101(b) to (d)’’; 

(B) in subsection (c)(3), before subparagraph (A), strike 

‘‘the Contract Disputes Act of 1978’’ and substitute ‘‘chapter 

71 of title 41’’; 

(C) in subsection (c)(3)(A), strike ‘‘(after appropriate 

arrangements, as described in section 8(c) of such Act)’’; 

and 

(D) in subsection (c)(3)(B), strike ‘‘section 10(a)(1) of such 

Act’’ and substitute ‘‘section 7104(b)(1) of title 41’’. 

(19) In section 9009, strike ‘‘section 26(f) of the Office of 

Federal Procurement Policy Act (41 U.S.C. 422(f))’’ and substitute ‘‘section 1502(a) and (b) of title 41’’. 

(b) TITLE 10.—Title 10, United States Code, is amended as follows: 

(1) In section 133(c)(1), strike ‘‘section 16(c) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 414(c))’’ and substitute ‘‘section 1702(c) of title 41’’. 

(2) In section 2013(a), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of 

title 41’’. 

(3) In section 2194(b)(2), strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 

et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(4) In section 2201— 

(A) in subsection (b), strike ‘‘section 3732(a) of the 

Revised Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 

6301(a) and (b)(1)–(3) of title 41’’; and 

(B) in subsection (c), strike ‘‘section 3732(a) of the Revised 

Statutes (41 U.S.C. 11(a))’’ and substitute ‘‘section 6301(a) 

and (b)(1)–(3) of title 41’’. 

(5) In section 2207(b), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(11))’’ and 

substitute ‘‘section 134 of title 41’’. 

(6) In section 2225(f)— 

(A) in paragraph (1), strike ‘‘section 16(c) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 414(c))’’ and 

substitute ‘‘section 1702(c) of title 41’’; and 

(B) in paragraph (2), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(11))’’ 

and substitute ‘‘section 134 of title 41’’. 

(7) In section 2226(b), strike ‘‘section 4(12) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and 

substitute ‘‘section 103 of title 41’’. 

(8) In section 2302— 

(A) in paragraph (3), strike ‘‘section 4 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘chapter 1 of title 41’’; 
H. R. 1107—167 

(B) in paragraph (6), strike ‘‘section 25(c)(1) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 421(c)(1))’’ 

and substitute ‘‘section 1303(a)(1) of title 41’’; and 

(C) in paragraph (7), strike ‘‘section 4 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 134 of title 41’’. 

(9) In section 2302a— 

(A) in subsection (a), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act’’ and substitute ‘‘section 

134 of title 41’’; and 

(B) in subsection (b), strike ‘‘section 33 of the Office 

of Federal Procurement Policy Act’’ and substitute ‘‘section 

1905 of title 41’’. 

(10) In section 2302b, strike ‘‘section 31 of the Office of 

Federal Procurement Policy Act’’ and substitute ‘‘section 1901 

of title 41’’. 

(11) In section 2302c— 

(A) in subsection (a)(1), strike ‘‘section 30 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 426)’’ and 

substitute ‘‘section 2301 of title 41’’; and 

(B) in subsection (b), strike ‘‘section 16(c) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 414(c))’’ and 

substitute ‘‘section 1702(c) of title 41’’. 

(12) In section 2304— 

(A) in subsection (f)(1)(B)(iii), strike ‘‘section 16(c) of the 

Office of Federal Procurement Policy Act (41 U.S.C. 414(c))’’ 

and substitute ‘‘section 1702(c) of title 41’’; 

(B) in subsection (f)(1)(C), strike ‘‘section 18 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 416)’’ and 

substitute ‘‘section 1708 of title 41’’; 

(C) in subsection (f)(2)(D), strike ‘‘the Javits-WagnerO’Day Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 

85 of title 41’’; 

(D) in subsection (g)(4), strike ‘‘section 31(f) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 427)’’ and 

substitute ‘‘section 1901(e) of title 41’’; and 

(E) in subsection (h)(1), strike ‘‘The Walsh-Healey Act 

(41 U.S.C. 35 et seq.)’’ and substitute ‘‘Chapter 65 of title 

41’’. 

(13) In section 2304b— 

(A) in subsection (c), strike ‘‘section 18 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 416)’’ and 

substitute ‘‘section 1708 of title 41’’; and 

(B) in subsection (f)(3), strike ‘‘section 18 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 416)’’ and 

substitute ‘‘section 1708 of title 41’’. 

(14) In section 2304c(a)(1), strike ‘‘section 18 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 416)’’ and substitute ‘‘section 1708 of title 41’’. 

(15) In section 2306a(h)(3), strike ‘‘section 4(12) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and 

substitute ‘‘section 103 of title 41’’. 

(16) In section 2314, strike ‘‘Sections 3709 and 3735 of the 

Revised Statutes (41 U.S.C. 5 and 13)’’ and substitute ‘‘Sections 

6101(b)–(d) and 6304 of title 41’’. 

(17) In section 2318— 
H. R. 1107—168 

(A) in subsection (a)(1), strike ‘‘section 20(a) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 418(a))’’ and 

substitute ‘‘section 1705(a) of title 41’’; and 

(B) in subsection (a)(2), strike ‘‘sections 20(b) and 20(c) 

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

418(b), (c))’’ and substitute ‘‘section 1705(b) and (c) of title 

41’’. 

(18) In section 2321(h), strike ‘‘the Contract Disputes Act 

of 1978 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 71 

of title 41’’. 

(19) In section 2324— 

(A) in subsection (d)(1), strike ‘‘section 6 of the Contract 

Disputes Act of 1978 (41 U.S.C. 605)’’ and substitute ‘‘section 7103 of title 41’’; 

(B) in subsection (d)(2), strike ‘‘section 7 of such Act 

(41 U.S.C. 606)’’ and substitute ‘‘section 7104(a) of title 

41’’; 

(C) in subsection (e)(1)(P), strike ‘‘section 39 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 435)’’ and 

substitute ‘‘section 1127 of title 41’’; and 

(D) in subsection (e)(2)(C), strike ‘‘(41 U.S.C. 10b–1)’’ 

and substitute ‘‘(as added by section 7002(2) of the Omnibus 

Trade and Competitiveness Act of 1988)’’. 

(20) In section 2343, strike ‘‘section 3741 of the Revised 

Statutes (41 U.S.C. 22)’’ and substitute ‘‘section 6306 of title 

41’’. 

(21) In section 2375(b), strike ‘‘section 34 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 430)’’ and substitute 

‘‘section 1906 of title 41’’. 

(22) In section 2376(1), strike ‘‘section 4 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 403)’’ and substitute 

‘‘chapter 1 of title 41’’. 

(23) In section 2384— 

(A) in subsection (b)(2), strike ‘‘section 4(12) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ 

and substitute ‘‘section 103 of title 41)’’; and 

(B) in subsection (b)(3), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ 

and substitute ‘‘section 134 of title 41)’’. 

(24) In section 2393(d)— 

(A) strike ‘‘section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and substitute ‘‘section 134 of title 41)’’; and 

(B) strike ‘‘section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and substitute ‘‘section 103 of title 41)’’. 

(25) In section 2402— 

(A) in subsection (c), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ 

and substitute ‘‘section 134 of title 41)’’; and 

(B) in subsection (d)(2), strike ‘‘section 4(12) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(12))’’ 

and substitute ‘‘section 103 of title 41’’. 

(26) In section 2408— 

(A) in subsection (a)(4)(A), strike ‘‘section 4(11) of the 

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

403(11)))’’ and substitute ‘‘section 134 of title 41)’’; and 
H. R. 1107—169 

(B) in subsection (a)(4)(B), strike ‘‘section 4(12) of the 

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

403(12)))’’ and substitute ‘‘section 103 of title 41)’’. 

(27) In section 2410(c), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act’’ and substitute ‘‘section 

134 of title 41’’. 

(28) In section 2410b(c), strike ‘‘section 4(12) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and 

substitute ‘‘section 103 of title 41)’’. 

(29) In section 2410d— 

(A) in subsection (b)(2)(A), strike ‘‘section 5(3) of the 

Javits-Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute 

‘‘section 8501(7) of title 41’’; 

(B) in subsection (b)(2)(B), strike ‘‘handicapped, as 

defined in section 5(4) of such Act (41 U.S.C. 48b(4))’’ 

and substitute ‘‘disabled, as defined in section 8501(6) of 

title 41’’; and 

(C) in subsection (b)(2)(C), strike ‘‘section 2(c) of such 

Act (41 U.S.C. 47(c))’’ and substitute ‘‘section 8503(c) of 

title 41’’. 

(30) In section 2410g(d)(1), strike ‘‘section 4(12) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(12)))’’ and 

substitute ‘‘section 103 of title 41)’’. 

(31) In section 2410i(b)(1), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(11)))’’ and 

substitute ‘‘section 134 of title 41)’’. 

(32) In section 2410m— 

(A) in subsection (a), before paragraph (1), strike ‘‘the 

Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.)’’ 

and substitute ‘‘chapter 71 of title 41’’; 

(B) in subsection (a)(2), strike ‘‘section 7 of such Act 

(41 U.S.C. 606)’’ and substitute ‘‘section 7104(a) of title 

41’’; and 

(C) in subsection (b)(1)(A), strike ‘‘section 10(a) of the 

Contract Disputes Act of 1978 (41 U.S.C. 609(a))’’ and 

substitute ‘‘section 7104(b) of title 41’’. 

(33) In section 2457(e), strike ‘‘section 2 of the Buy American 

Act (41 U.S.C. 10a)’’ and substitute ‘‘section 8302 of title 41’’. 

(34) In section 2461(c)(1), strike ‘‘section 2 of the JavitsWagner-O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 8503 

of title 41’’. 

(35) In section 2485(b)(1), strike ‘‘section 4(6) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(6))’’ and 

substitute ‘‘section 107 of title 41’’. 

(36) In the chapter analysis for subchapter V of chapter 

148, in the item for section 2533, strike ‘‘the Buy American 

Act’’ and substitute ‘‘chapter 83 of title 41’’. 

(37) In section 2533— 

(A) in the section catchline, strike ‘‘the Buy American 

Act’’ and substitute ‘‘chapter 83 of title 41’’; and 

(B) in subsection (a), strike ‘‘section 2 of the Buy American Act (41 U.S.C. 10a)’’ and substitute ‘‘section 8302 

of title 41’’. 

(38) In section 2533a(i), strike ‘‘section 34 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 430)’’ and substitute 

‘‘section 1906 of title 41’’. 

(39) In section 2533b— 
H. R. 1107—170 

(A) in subsection (h), strike ‘‘section 34 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 430)’’ and 

substitute ‘‘section 1906 of title 41’’; and 

(B) in subsection (j), strike ‘‘section 4 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 105 of title 41’’. 

(40) In section 2534(g)(2), strike ‘‘section 33 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 429)’’ and substitute ‘‘section 1905 of title 41’’. 

(41) In section 2562(a)(1), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(42) In section 2576(a), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(43) In section 2636(b)(3), strike ‘‘section 4(11) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(11))’’ and 

substitute ‘‘section 134 of title 41’’. 

(44) In section 2667(f)(1), strike ‘‘Notwithstanding subsection 

(a)(3) or subtitle I of title 40 and title III of the Federal 

Property and Administrative Services Act of 1949 (to the extent 

subtitle I and title III are inconsistent with this subsection)’’ 

and substitute ‘‘Notwithstanding subtitle I of title 40 and division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 

4711) of subtitle I of title 41 (to the extent those provisions 

are inconsistent with this subsection) or subsection (a)(2) of 

this section’’. 

(45) In section 2664(a), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949, as amended (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(46) In section 2691(b), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(47) In section 2696(a), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(48) In section 2836(g), strike ‘‘the Contract Disputes Act 

of 1978 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 71 

of title 41’’. 

(49) In section 2854a(d)(1), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(50) In section 2878(d)(2), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(51) In the chapter analysis for chapter 633, in the item 

for section 7299, strike ‘‘Walsh-Healey Act’’ and substitute 

‘‘chapter 65 of title 41’’. 

(52) In section 7299— 

(A) in the heading, strike ‘‘Walsh-Healey Act’’ and substitute ‘‘chapter 65 of title 41’’; and 
H. R. 1107—171 

(B) strike ‘‘the Walsh-Healey Act (41 U.S.C. 35 et seq.)’’ 

and substitute ‘‘chapter 65 of title 41’’. 

(53) In section 7305(d)— 

(A) strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 

substitute ‘‘division C (except sections 3302, 3501(b), 3509, 

3906, 4710, and 4711) of subtitle I of title 41’’; and 

(B) strike ‘‘under subtitle I of title 40 and such title 

III’’ and substitute ‘‘under those provisions’’. 

(54) In section 9444(b)(1), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(55) In section 9781(g), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(c) TITLE 14.—Title 14, United States Code, is amended as follows: 

(1) In section 92(d), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(2) In section 93(h), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(3) In section 641(a), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(4) In section 685(c)(1), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(d) TITLE 18.—Title 18, United States Code, is amended as follows: 

(1) In section 3672, strike ‘‘section 3709 of the Revised Statutes of the United States’’ and substitute ‘‘section 6101(b) to 

(d) of title 41’’. 

(2) In section 4124(c), strike ‘‘section 6(d)(4) of the Office 

of Federal Procurement Policy Act’’ and substitute ‘‘section 

1122(a)(4) of title 41’’. 

(e) TITLE 23.—Title 23, United States Code, is amended as follows: 

(1) In section 140— 

(A) in subsection (b), strike ‘‘section 3709 of the Revised 

Statutes, as amended (41 U.S.C. 5),’’ and substitute ‘‘section 

6101(b) to (d) of title 41’’; and 

(B) in subsection (c)— 

(i) strike ‘‘section 3709 of the Revised Statutes, as 

amended (41 U.S.C. 5),’’ and substitute ‘‘section 6101(b) 

to (d) of title 41’’; and 

(ii) strike ‘‘section 302(e) of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 

252(e))’’ and substitute ‘‘section 3106 of title 41’’. 

(2) In section 502(c)(5), strike ‘‘Section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) 

of title 41’’. 
H. R. 1107—172 

(f) THE INTERNAL REVENUE CODE OF 1986.—Section 7608(c)(1) 

of the Internal Revenue Code of 1986 (26 U.S.C. 7608(c)(1)) is 

amended— 

(1) in subparagraph (A)(i)(II), by striking ‘‘sections 11(a) and 

22’’ and substituting ‘‘sections 6301(a) and (b)(1)–(3) and 6306’’; 

(2) in subparagraph (A)(i)(III), by striking ‘‘section 255’’ and 

substituting ‘‘chapter 45’’; and 

(3) in subparagraph (A)(i)(V), by striking ‘‘section 254(a) and 

(c)’’ and substituting ‘‘section 3901’’. 

(g) TITLE 28.—Title 28, United States Code, is amended as follows: 

(1) In the last sentence of section 524(c)(1), strike ‘‘section 

3709 of the Revised Statutes of the United States (41 U.S.C. 

5), title III of the Federal Property and Administrative Services 

Act of 1949 (41 U.S.C. 251 and following)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 

4711) of subtitle I of title 41, section 6101(b) to (d) of title 

41’’. 

(2) In section 604(a)(10)(C), strike ‘‘section 3709 of the Revised 

Statutes of the United States (41 U.S.C. 5)’’ and substitute 

‘‘section 6101(b) to (d) of title 41’’. 

(3) In section 624(3), strike ‘‘section 3709 of the Revised 

Statutes, as amended (41 U.S.C. 5)’’ and substitute ‘‘section 

6101(b) to (d) of title 41’’. 

(4) In section 753(g), strike ‘‘section 3709 of the Revised 

Statutes of the United States, as amended (41 U.S.C. 5)’’ and 

substitute ‘‘section 6101(b) to (d) of title 41’’. 

(5) In section 1295— 

(A) in subsection (a)(10), strike ‘‘section 8(g)(1) of the 

Contract Disputes Act of 1978 (41 U.S.C. 607(g)(1))’’ and 

substitute ‘‘section 7107(a)(1) of title 41’’; 

(B) in subsection (b), strike ‘‘section 10(b) of the Contract 

Disputes Act of 1978 (41 U.S.C. 609(b))’’ and substitute 

‘‘section 7107(b) of title 41’’; and 

(C) in subsection (c), strike ‘‘section 10(b) of the Contract 

Disputes Act of 1978’’ and substitute ‘‘section 7107(b) of 

title 41’’. 

(6) In section 1346(a)(2), strike ‘‘sections 8(g)(1) and 10(a)(1) 

of the Contract Disputes Act of 1978’’ and substitute ‘‘sections 

7104(b)(1) and 7107(a)(1) of title 41’’. 

(7) In section 1491(a)(2), strike ‘‘section 10(a)(1) of the Contract Disputes Act of 1978’’ and substitute ‘‘section 7104(b)(1) 

of title 41’’. 

(8) In section 2401(a), strike ‘‘the Contract Disputes Act of 

1978’’ and substitute ‘‘chapter 71 of title 41’’. 

(9) In section 2412— 

(A) in subsection (d)(2)(E), strike ‘‘the Contract Disputes 

Act of 1978’’ and substitute ‘‘chapter 71 of title 41’’; and 

(B) in subsection (d)(3), strike ‘‘the Contract Disputes 

Act of 1978’’ and substitute ‘‘chapter 71 of title 41’’. 

(10) In section 2414, strike ‘‘the Contract Disputes Act of 

1978’’ and substitute ‘‘chapter 71 of title 41’’. 

(11) In section 2517(a), strike ‘‘the Contract Disputes Act 

of 1978’’ and substitute ‘‘chapter 71 of title 41’’. 

(h) TITLE 31.—Title 31, United States Code, is amended as follows: 

(1) In section 506, strike ‘‘section 5(a) of the Office of Federal 

Procurement Policy Act (41 U.S.C. 404(a))’’ and substitute ‘‘section 1101(a) of title 41’’. 
H. R. 1107—173 

(2) In section 731(i)(7), strike ‘‘section 27 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 423)’’ and substitute 

‘‘chapter 21 of title 41’’. 

(3) In section 781(c)(1), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(4) Section 1344(h)(2)(A) is amended to read as follows: 

‘‘(A) a department— 

‘‘(i) including independent establishments, other 

agencies, and wholly owned Government corporations; 

but 

‘‘(ii) not including the Senate, House of Representatives, or Architect of the Capitol, or the officers or 

employees thereof;’’. 

(5) In section 3567, strike ‘‘section 4(1) of the Office of Federal 

Procurement Policy Act (41 U.S.C. 403(1))’’ and substitute ‘‘section 133 of title 41’’. 

(6) In section 3718(b)(1)(A), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

251 and following)’’ and substitute ‘‘division C (except sections 

3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of 

title 41’’. 

(7) In section 3902(a), strike ‘‘section 12 of the Contract 

Disputes Act of 1978 (41 U.S.C. 611)’’ and substitute ‘‘section 

7109(a)(1) and (b) of title 41’’. 

(8) In section 3907— 

(A) in subsection (a), strike ‘‘section 6 of the Contract 

Disputes Act of 1978 (41 U.S.C. 605)’’ and substitute ‘‘section 7103 of title 41’’; 

(B) in subsection (b)(1)(A), strike ‘‘the Contract Disputes 

Act of 1978 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 

71 of title 41’’; 

(C) in subsection (b)(2)— 

(i) strike ‘‘section 12 of the Contract Disputes Act 

of 1978 (41 U.S.C. 611)’’ and substitute ‘‘section 

7109(a)(1) and (b) of title 41’’; and 

(ii) in the second sentence, strike ‘‘section 12’’ and 

substitute ‘‘section 7109(a)(1) and (b)’’; and 

(D) in subsection (c), strike ‘‘the Contract Disputes Act 

of 1978 (41 U.S.C. 601 et seq.)’’ and substitute ‘‘chapter 

71 of title 41’’. 

(9) In section 6202(c)(2), strike ‘‘section 6(d)(5) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 405(d)(5))’’ and 

substitute ‘‘section 1122(a)(4) of title 41’’. 

(10) In section 9703(b)(3), as added by section 638(b)(1) of 

the Act of October 6, 1992 (Public Law 102–393, 106 Stat. 

1779), strike ‘‘section 3709 of the Revised Statutes of the United 

States (41 U.S.C. 5), title III of the Federal Property and 

Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ 

and substitute ‘‘division C (except sections 3302, 3501(b), 3509, 

3906, 4710, and 4711) of subtitle I of title 41, section 6101(b) 

to (d) of title 41’’. 

(i) TITLE 35.—Title 35, United States Code, is amended as follows: 

(1) In section 2(b)(4)(A), strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 

et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 
H. R. 1107—174 

(2) In section 203(b), strike ‘‘the Contract Disputes Act (41 

U.S.C. § 601 et seq.)’’ and substitute ‘‘chapter 71 of title 41’’. 

(j) TITLE 38.—Title 38, United States Code, is amended as follows: 

(1) In section 1720(c)(2), strike ‘‘section 2(b)(1) of the Service 

Contract Act of 1965 (41 U.S.C. 351(b)(1))’’ and substitute ‘‘section 6704(a) of title 41’’. 

(2) In section 1966(a), strike ‘‘section 3709 of the Revised 

Statutes, as amended (41 U.S.C. 5)’’ and substitute ‘‘section 

6101(b) to (d) of title 41’’. 

(3) In section 3720(b), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(4) In section 7317(f), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(5) In section 7802(f), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(6) In section 8122— 

(A) in subsection (a)(1), strike ‘‘section 3709 of the 

Revised Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 

6101(b) to (d) of title 41’’; and 

(B) in subsection (c)— 

(i) strike ‘‘(41 U.S.C. 252(c))’’; and 

(ii) strike ‘‘section 304 of that Act (41 U.S.C. 254)’’ 

and substitute ‘‘sections 3901 and 3905 of title 41’’. 

(7) In section 8127— 

(A) in subsection (b), strike ‘‘section 4 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 134 of title 41’’; and 

(B) in subsection (c)(2), strike ‘‘section 4 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403)’’ and 

substitute ‘‘section 134 of title 41’’. 

(8) In section 8153(a)— 

(A) in paragraph (3)(B)(ii), strike ‘‘section 22 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 418b)’’ and 

substitute ‘‘section 1707 of title 41’’; and 

(B) in paragraph (3)(D), strike ‘‘section 303(f) of the Federal Property and Administrative Services Act of 1949 (41 

U.S.C. 253(f))’’ and substitute ‘‘section 3304(e) of title 41’’. 

(9) In section 8201(e), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(k) TITLE 39.—Section 410(b) of title 39, United States Code, 

is amended by striking paragraph (5) and substituting— 

‘‘(5) chapters 65 and 67 of title 41;’’. 

(l) TITLE 40.—Title 40, United States Code, is amended as follows: 

(1) In the chapter analysis for chapter 1, in item 111, strike 

‘‘Federal Property and Administrative Services Act of 1949’’ 

and substitute ‘‘division C (except sections 3302, 3501(b), 3509, 

3906, 4710, and 4711) of subtitle I of title 41’’. 

(2) In section 102, before paragraph (1), strike ‘‘title III of 

the Federal Property and Administrative Services Act of 1949 

(41 U.S.C. 251 et seq.)’’ and substitute ‘‘division C (except 

sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle 

I of title 41’’. 

(3) In section 111— 
H. R. 1107—175 

(A) in the section catchline, strike ‘‘Federal Property 

and Administrative Services Act of 1949’’ and substitute ‘‘division C (except sections 3302, 3501(b), 3509, 

3906, 4710, and 4711) of subtitle I of title 41’’; and 

(B) before paragraph (1), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 

U.S.C. 251 et seq.)’’ and substitute ‘‘division C (except 

sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of 

subtitle I of title 41’’. 

(4) In section 113(b)— 

(A) in the heading, strike ‘‘THE OFFICE OF FEDERAL

PROCUREMENT POLICY ACT’’ and substitute ‘‘DIVISION B 

(EXCEPT SECTIONS 1704 AND 2303) OF SUBTITLE I OF TITLE

41’’; and 

(B) strike ‘‘the Office of Federal Procurement Policy Act 

(41 U.S.C. 401 et seq.)’’ and substitute ‘‘division B (Except 

Sections 1704 and 2303) of subtitle I of title 41’’. 

(5) In section 311— 

(A) in subsection (a), strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 

3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I 

of title 41’’; and 

(B) in subsection (b), strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 

3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I 

of title 41’’. 

(6) In section 501(b)(2)(B), strike ‘‘the Office of Federal 

Procurement Policy Act (41 U.S.C. 401 et seq.)’’ and substitute 

‘‘division B (except sections 1704 and 2303) of subtitle I of 

title 41’’. 

(7) In section 502— 

(A) in subsection (b)(1)(A)(i), strike ‘‘section 5(3) of the 

Javits-Wagner-O’Day Act (41 U.S.C. 48b(3))’’ and substitute 

‘‘section 8501(7) of title 41’’; 

(B) in subsection (b)(1)(A)(ii), strike ‘‘handicapped (as 

defined in section 5(4) of the Javits-Wagner-O’Day Act 

(41 U.S.C. 48b(4)))’’ and substitute ‘‘disabled (as defined 

in section 8501(6) of title 41)’’; 

(C) in subsection (b)(1)(B), strike ‘‘the Javits-WagnerO’Day Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 

85 of title 41’’; and 

(D) in subsection (b)(2), strike ‘‘section 2 of the JavitsWagner-O’Day Act (41 U.S.C. 47)’’ and substitute ‘‘section 

8503 of title 41’’. 

(8) In section 503(b)— 

(A) in paragraph (1), strike ‘‘the Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.)’’ and substitute 

‘‘division B (except sections 1704 and 2303) of subtitle 

I of title 41’’; and 

(B) in paragraph (3)— 

(i) in the heading, strike ‘‘SECTION 3709 OF REVISED

STATUTES’’ and substitute ‘‘SECTION 6101(b) TO (d) OF

TITLE 41’’; and 

(ii) strike ‘‘Section 3709 of the Revised Statutes (41 

U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) of 

title 41’’. 
H. R. 1107—176 

(9) In section 506(a)(1)(D), strike ‘‘the Office of Federal 

Procurement Policy Act (41 U.S.C. 401 et seq.)’’ and substitute 

‘‘division B (except sections 1704 and 2303) of subtitle I of 

title 41’’. 

(10) In section 545(f), strike ‘‘Section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b)–(d) of 

title 41’’. 

(11) In section 593(a)(2), strike ‘‘the Javits-Wagner-O’Day 

Act (41 U.S.C. 46 et seq.)’’ and substitute ‘‘chapter 85 of title 

41’’. 

(12) In section 1305, strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(13) In section 1308, strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(14) In section 3148, strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(15) In section 3304(d)(2), strike ‘‘title III of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(16) In section 3305(a)— 

(A) in paragraph (1), strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 

3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I 

of title 41’’; and 

(B) in paragraph (2), strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 

3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I 

of title 41’’. 

(17) In section 3308(a), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(18) In section 3310(2), strike ‘‘section 303 of the Federal 

Property and Administrative Services Act of 1949 (41 U.S.C. 

253)’’ and substitute ‘‘sections 3105, 3301, and 3303 to 3305 

of title 41’’. 

(19) In section 3701(b)(3)(A)(ii), strike ‘‘the Walsh-Healey Act 

(41 U.S.C. 35 et seq.)’’ and substitute ‘‘chapter 65 of title 41’’. 

(20) In section 3704(b)(1), strike ‘‘sections 4 and 5 of the 

Walsh-Healey Act (41 U.S.C. 38, 39)’’ and substitute ‘‘sections 

6506 and 6507 of title 41’’. 

(21) In section 3707, strike ‘‘section 4 of the Office of Federal 

Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 

103 of title 41’’. 

(22) In section 6111(b)(2)(D), strike ‘‘section 3709 of the 

Revised Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) 

to (d) of title 41’’. 

(23) In section 8711(d), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(24) In section 11101— 
H. R. 1107—177 

(A) in paragraph (1), strike ‘‘section 4 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 403)’’ and substitute ‘‘section 103 of title 41’’; and 

(B) in paragraph (2), strike ‘‘section 4 of the Act (41 

U.S.C. 403)’’ and substitute ‘‘section 133 of title 41’’. 

(m) TITLE 44.—Title 44, United States Code, is amended as 

follows: 

(1) In the chapter analysis for chapter 3, in the item for 

section 311, strike ‘‘the Federal Property and Administrative 

Services Act’’ and substitute ‘‘subtitle I of title 40 and division 

C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) 

of subtitle I of title 41’’. 

(2) In section 311— 

(A) in the section catchline, strike ‘‘the Federal Property and Administrative Services Act’’ and substitute 

‘‘subtitle I of title 40 and division C (except sections 

3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle 

I of title 41’’; 

(B) in subsection (a), strike ‘‘title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 

251 et seq.)’’ and substitute ‘‘division C (except sections 

3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I 

of title 41’’; and 

(C) in subsection (c), strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to 

(d) of title 41’’. 

(n) TITLE 46.—Section 51703(b)(2) of title 46, United States Code, 

is amended by striking ‘‘section 3709 of the Revised Statutes (41 

U.S.C. 5)’’ and substituting ‘‘section 6101(b) to (d) of title 41’’. 

(o) TITLE 49.—Title 49, United States Code, is amended as follows: 

(1) In section 103(e), strike ‘‘title III of the Federal Property 

and Administrative Services Act of 1949 (41 U.S.C. 251 et 

seq.)’’ and substitute ‘‘division C (except sections 3302, 3501(b), 

3509, 3906, 4710, and 4711) of subtitle I of title 41’’. 

(2) In section 1113(b)(1)(B) strike ‘‘section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘section 6101(b) to (d) 

of title 41’’. 

(3) In section 5334(j)(2), strike ‘‘Section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) 

of title 41’’. 

(4) In section 10721, strike ‘‘Section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) 

of title 41’’. 

(5) In section 13712, strike ‘‘Section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) 

of title 41’’. 

(6) In section 15504, strike ‘‘Section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) 

of title 41’’. 

(7) In section 40110— 

(A) in subsection (d)(2)(A), strike ‘‘Title III of the Federal 

Property and Administrative Services Act of 1949 (41 

U.S.C. 252–266)’’ and substitute ‘‘Division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle 

I of title 41’’; 
H. R. 1107—178 

(B) in subsection (d)(2)(B), strike ‘‘The Office of Federal 

Procurement Policy Act (41 U.S.C. 401 et seq.)’’ and substitute ‘‘Division B (except sections 1704 and 2303) of subtitle I of title 41’’; 

(C) in subsection (d)(2)(C), strike ‘‘, except for section 

315 (41 U.S.C. 265). For the purpose of applying section 

315 of that Act to the system,’’ and substitute ‘‘. However, 

section 4705 of title 41 shall apply to the new acquisition 

management system developed and implemented pursuant 

to paragraph (1). For the purpose of applying section 4705 

of title 41 to the system,’’; and 

(D) in subsection (d)(3)— 

(i) in the heading, strike ‘‘THE OFFICE OF FEDERAL

PROCUREMENT POLICY ACT’’ and substitute ‘‘DIVISION

B (EXCEPT SECTIONS 1704 AND 2303) OF SUBTITLE I OF

TITLE 41’’; 

(ii) before subparagraph (A), strike ‘‘section 27 of 

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

423)’’ and substitute ‘‘chapter 21 of title 41’’; and 

(iii) in subparagraph (A), strike ‘‘Subsections (f) and 

(g)’’ and substitute ‘‘Sections 2101 and 2106 of title 

41’’. 

(8) In section 40118(f)(2), strike ‘‘section 4(12) of the Office 

of Federal Procurement Policy Act (41 U.S.C. 403(12))’’ and 

substitute ‘‘section 103 of title 41’’. 

(9) In section 47305(d), strike ‘‘Section 3709 of the Revised 

Statutes (41 U.S.C. 5)’’ and substitute ‘‘Section 6101(b) to (d) 

of title 41’’. 

SEC. 6. TRANSITIONAL AND SAVINGS PROVISIONS. 

(a) CUTOFF DATE.—This Act replaces certain provisions of law 

enacted on or before December 31, 2008. If a law enacted after 

that date amends or repeals a provision replaced by this Act, 

that law is deemed to amend or repeal, as the case may be, the 

corresponding provision enacted by this Act. If a law enacted after 

that date is otherwise inconsistent with this Act, it supersedes 

this Act to the extent of the inconsistency. 

(b) ORIGINAL DATE OF ENACTMENT UNCHANGED.—For purposes 

of determining whether one provision of law supersedes another 

based on enactment later in time, the date of enactment of a 

provision enacted by this Act is deemed to be the date of enactment 

of the provision it replaced. 

(c) REFERENCES TO PROVISIONS REPLACED.—A reference to a 

provision of law replaced by this Act, including a reference in 

a regulation, order, or other law, is deemed to refer to the corresponding provision enacted by this Act. 

(d) REGULATIONS, ORDERS, AND OTHER ADMINISTRATIVE

ACTIONS.—A regulation, order, or other administrative action in 

effect under a provision of law replaced by this Act continues 

in effect under the corresponding provision enacted by this Act. 

(e) ACTIONS TAKEN AND OFFENSES COMMITTED.—An action taken 

or an offense committed under a provision of law replaced by 

this Act is deemed to have been taken or committed under the 

corresponding provision enacted by this Act. 

(f) EFFECTIVE DATES FOR CERTAIN ACTIONS.— 

(1) ISSUE POLICY.—The requirement in section 2303(b)(1) of 

title 41, United States Code, to issue a policy shall be done 

not later than 270 days after October 14, 2008. 
H. R. 1107—179 

(2) REVISIONS IN FEDERAL PROCUREMENT DATA SYSTEM OR

SUCCESSOR SYSTEM.—The requirement in section 2311 of title 

41, United States Code, to direct appropriate revisions in the 

Federal Procurement Data System or any successor system 

shall be done not later than one year after October 14, 2008. 

(3) ESTABLISH DATABASE.—The requirement in section 2313(a) 

of title 41, United States Code, to establish a database shall 

be done not later than one year after October 14, 2008. 

(4) AMEND FEDERAL ACQUISITION REGULATION WITHIN ONE

YEAR AFTER OCTOBER 14, 2008.—The Federal Acquisition Regulation shall be amended to meet the requirements of sections 

2313(f), 3302(b) and (d), 4710(b), and 4711(b) of title 41, United 

States Code, not later than one year after October 14, 2008. 

(5) AMEND FEDERAL ACQUISITION REGULATION WITHIN 270 DAYS

AFTER OCTOBER 14, 2008.—The Federal Acquisition Regulation 

shall be amended to meet the requirements of section 3906(b) 

of title 41, United States Code, not later than 270 days after 

October 14, 2008. 

SEC. 7. REPEALS. 

(a) INFERENCE OF REPEAL.—The repeal of a law by this Act 

may not be construed as a legislative inference that the provision 

was or was not in effect before its repeal. 

(b) REPEALER SCHEDULE.—The laws specified in the following 

schedule are repealed, except for rights and duties that matured, 

penalties that were incurred, and proceedings that were begun 

before the date of enactment of this Act. 

Schedule of Laws Repealed 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

1875 

Mar. 3 .. 133 ........ 2 ...................................... 18 455 .......... 10 ........................

1884 

July 7 ... 332 ........ (words after ‘‘fifty five 

thousand dollars’’ in 

3d par. under heading 

‘‘Miscellaneous Objects Under the 

Treasury Department’’).

23 204 .......... 24 6308 

1920 

June 5 .. 240 ........ (last par. under heading 

‘‘Purchase of Articles 

Manufactured at Government Arsenals’’).

41 975 .......... 23 6307 

1921 

June 30 33 .......... 1 (last proviso on p. 78) 42 78 ............ 11a 6302 

1922 

July 1 ... 259 ........ (1st proviso on p. 812) .. 42 812 .......... 23 6307 

1926 

May 13 294 ........ (4th complete par. (related to R.S. § 3741) 

on p. 547).

44 547 .......... 16c ........................
H. R. 1107—180 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

1927 

Jan. 12 27 .......... (2d complete par. (related to R.S. § 3741) 

on p. 936).

44 936 .......... 16a ........................

1933 

Mar. 3 .. 212 ........ title III, § 1 ..................... 47 1520 ........ 10c 8301 

............ title III, § 2 ..................... 47 1520 ........ 10a 8302 

............ title III, § 3 ..................... 47 1520 ........ 10b 8303 

............ title III, § 4 ..................... ........ ................. 10b–1 ........................

June 16 101 ........ 5 ...................................... 48 305 .......... 24a ........................

1934 

Jan. 25 5 ............ (related to R.S. § 3741) 48 337 .......... 22 6306 

June 16 553 ........ 1–6 .................................. 48 974 .......... 28–33 ........................

1935 

Aug. 29 815 ........ ......................................... 49 990 .......... 34 ........................

1936 

June 30 881 ........ 1 (matter before subsec. 

(a) less words related 

to definition of ‘‘agency of the United 

States’’).

49 2036 ........ 35 6502 

............ 1 (matter before subsec. 

(a) related to definition of ‘‘agency of the 

United States’’).

49 2036 ........ 35 6501 

............ 1(a)–(d) ........................... 49 2036 ........ 35 6502 

............ 2 ...................................... 49 2037 ........ 36 6503 

............ 3 ...................................... 49 2037 ........ 37 6504 

............ 4 ...................................... 49 2038 ........ 38 6506 

............ 5 ...................................... 49 2038 ........ 39 6507 

............ 6 ...................................... 49 2038 ........ 40 6508 

............ 7 ...................................... 49 2039 ........ 41 6501 

............ 8 ...................................... 49 2039 ........ 42 6511 

............ 9 ...................................... 49 2039 ........ 43 6505 

............ 10(a) ............................... ........ ................. 43a 6509 

............ 10(b) (1st sentence) ....... ........ ................. 43a 6507 

............ 10(b) (last sentence), (c) ........ ................. 43a 6509 

............ 11 .................................... ........ ................. 43b 6510 

............ 12 .................................... 49 2039 ........ 44 ........................

............ 13 .................................... 49 2039 ........ 45 6502 

1938 

June 25 697 ........ 1 ...................................... 52 1196 ........ 46 8502 

............ 2 ...................................... 52 1196 ........ 47 8503 

............ 3 ...................................... 52 1196 ........ 48 8504 

............ 4 ...................................... 52 1196 ........ 48a 8505 

............ 5 ...................................... 52 1196 ........ 48b 8501 

............ 6 ...................................... 52 1196 ........ 48c 8506 

............ 7 ...................................... ........ ................. 46 note ........................

1939 

Aug. 4 .. 418 ........ 13 (related to R.S. 

§ 3744).

53 1197 ........ 16d ........................

1940 

June 18 396 ........ (last par. (related to 

R.S. § 3709) under 

heading ‘‘Botanic Garden’’).

54 474 .......... 6kk ........................

............ (last par. (related to 

R.S. § 3744) under 

heading ‘‘Botanic Garden’’).

54 474 .......... 16b ........................

June 24 412 ........ ......................................... 54 504 .......... 6b 6102 

Oct. 10 851 ........ 2(a) ................................. 54 1110 ........ 6a 6102 

............ 2(f) .................................. 54 1110 ........ 6a 6102 

............ 2(h) ................................. 54 1110 ........ 6a 6102 

............ 2(j) .................................. 54 1110 ........ 6a 6102 
H. R. 1107—181 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

............ 3(a) ................................. 54 1111 ........ 6b ........................

............ 3(b) ................................. 54 1111 ........ 6b ........................

1942 

June 22 432 ........ 1 ...................................... 56 375 .......... 49 6309 

............ 2 ...................................... 56 376 .......... 50 6309 

July 2 ... 472 ........ (1st complete par. on p. 

493).

56 493 .......... 6 ........................

1944 

July 1 ... 358 ........ 1, 2(a) ............................. 58 649 .......... 101, 102 ........................

............ 3 ...................................... 58 650 .......... 103 ........................

............ 4(b)–13(c) ....................... 58 651 .......... 104–113 ........................

............ 13(d) ............................... 58 662 .......... 113 ........................

............ 13(e)–15 ......................... 58 662 .......... 113–115 ........................

............ 17, 18(a) ......................... 58 665 .......... 117, 118 ........................

............ 18(c)–(e) ......................... 58 666 .......... 118 ........................

............ 19(c) ................................ 58 667 .......... 119 ........................

............ 20–25 .............................. 58 668 .......... 120–125 ........................

............ 26 .................................... 58 671 .......... 101 note ........................

............ 27 .................................... 58 671 .......... 101 note ........................

1946 

Mar. 8 .. 80 .......... 1 ...................................... 60 37 ............ 51 ........................

............ 2 ...................................... 60 37 ............ 52 8701 

............ 3 ...................................... 60 37 ............ 53 8702 

............ 4 ...................................... 60 37 ............ 54 8707 

............ 5 ...................................... 60 37 ............ 55 8706 

............ 6 ...................................... 60 37 ............ 56 8705 

............ 7 ...................................... 60 37 ............ 57 8703 

............ 8 ...................................... 60 37 ............ 58 8704 

Aug. 2 .. 744 ........ 9(c) .................................. 60 809 .......... 5 6101 

............ 18 .................................... 60 811 .......... 5a 6101 

1949 

June 30 288 ........ 301 .................................. 63 393 .......... 251 ........................

............ 302(a) ............................. 63 393 .......... 252 3101 

............ 302(b) ............................. 63 393 .......... 252 3104 

............ 302(c)(1) ......................... 63 393 .......... 252 3106 

............ 302(c)(2) ......................... ........ ................. 252 3301 

............ 302A, 302B .................... ........ ................. 252a, 252b 3101 

............ 302C ............................... ........ ................. 252c 4709 

............ 303(a) ............................. 63 395 .......... 253 3301 

............ 303(b) ............................. 63 395 .......... 253 3303 

............ 303(c)–(f) ........................ 63 395 .......... 253 3304 

............ 303(g) ............................. 63 395 .......... 253 3305 

............ 303(h) ............................. ........ ................. 253 3301 

............ 303(i) .............................. ........ ................. 253 3105 

............ 303(j) .............................. ........ ................. 253 3304 

............ 303A ............................... ........ ................. 253a 3306 

............ 303B(a), (b) .................... ........ ................. 253b 3701 

............ 303B(c) ........................... ........ ................. 253b 3702 

............ 303B(d) ........................... ........ ................. 253b 3703 

............ 303B(e) ........................... ........ ................. 253b 3704 

............ 303B(f) ........................... ........ ................. 253b 3705 

............ 303B(g) ........................... ........ ................. 253b 3704, 3705 

............ 303B(h) .......................... ........ ................. 253b 3706 

............ 303B(i) ........................... ........ ................. 253b 3707 

............ 303B(j) ........................... ........ ................. 253b 3308 

............ 303B(k), (l) ..................... ........ ................. 253b 3708 

............ 303B(m) ......................... ........ ................. 253b 4702 

............ 303C ............................... ........ ................. 253c 3311 

............ 303D ............................... ........ ................. 253d 4703 

............ 303F ............................... ........ ................. 253f 3310 

............ 303G ............................... ........ ................. 253g 4704 

............ 303H ............................... ........ ................. 253h 4103 

............ 303I ................................ ........ ................. 253i 4105 

............ 303J ................................ ........ ................. 253j 4106 

............ 303K ............................... ........ ................. 253k 4101 

............ 303L ............................... ........ ................. 253l 3902 

............ 303M .............................. ........ ................. 253m 3309 

............ 304(a) ............................. 63 395 .......... 254 3901 
H. R. 1107—182 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

............ 304(b) ............................. 63 395 .......... 254 3905 

............ 304A(a) ........................... ........ ................. 254b 3502 

............ 304A(b) ........................... ........ ................. 254b 3503 

............ 304A(c) ........................... ........ ................. 254b 3504 

............ 304A(d) ........................... ........ ................. 254b 3505 

............ 304A(e) ........................... ........ ................. 254b 3506 

............ 304A(f) ........................... ........ ................. 254b 3507 

............ 304A(g) ........................... ........ ................. 254b 3508 

............ 304A(h) .......................... ........ ................. 254b 3501 

............ 304B ............................... ........ ................. 254c 3903 

............ 304C ............................... ........ ................. 254d 4706 

............ 305(a) ............................. 63 396 .......... 255 4501 

............ 305(b) ............................. ........ ................. 255 4502 

............ 305(c) .............................. 63 396 .......... 255 4502 

............ 305(d) ............................. 63 396 .......... 255 4503 

............ 305(e) ............................. ........ ................. 255 4504 

............ 305(f) .............................. ........ ................. 255 4505 

............ 305(g) ............................. ........ ................. 255 4506 

............ 306(a)–(d) ....................... ........ ................. 256 4303 

............ 306(e) ............................. ........ ................. 256 4304 

............ 306(f) .............................. ........ ................. 256 4305 

............ 306(g) ............................. ........ ................. 256 4306 

............ 306(h) ............................. ........ ................. 256 4307 

............ 306(i) .............................. ........ ................. 256 4308 

............ 306(j) .............................. ........ ................. 256 4309 

............ 306(k) ............................. ........ ................. 256 4310 

............ 306(l)(1) .......................... ........ ................. 256 4301 

............ 306(l)(2) .......................... ........ ................. 256 4302 

............ 306(m) ............................ ........ ................. 256 4301 

............ 307 .................................. 63 396 .......... 257 4701 

............ 309(a) ............................. 63 397 .......... 259 151 

............ 309(b) ............................. ........ ................. 259 152 

............ 309(c)(1) ......................... ........ ................. 259 111 

............ 309(c)(2) ......................... ........ ................. 259 112 

............ 309(c)(3) ......................... ........ ................. 259 114 

............ 309(c)(4) ......................... ........ ................. 259 107 

............ 309(c)(5) ......................... ........ ................. 259 113 

............ 309(c)(6) ......................... ........ ................. 259 116 

............ 309(c)(7) ......................... ........ ................. 259 109 

............ 309(c)(8), (9) ................... ........ ................. 259 108 

............ 309(c)(10) ....................... ........ ................. 259 115 

............ 309(c)(11) ....................... ........ ................. 259 103 

............ 309(c)(12) ....................... ........ ................. 259 110 

............ 309(c)(13) ....................... ........ ................. 259 102 

............ 309(c)(14) ....................... ........ ................. 259 105 

............ 309(d) ............................. ........ ................. 259 153 

............ 309(e) ............................. ........ ................. 259 106 

............ 310 .................................. 63 397 .......... 260 3101 

............ 311 .................................. ........ ................. 261 3102 

............ 312 .................................. ........ ................. 262 4701 

............ 313 .................................. ........ ................. 263 3103 

............ 314 .................................. ........ ................. 264 3307 

............ 314A (‘‘commercial 

item’’).

........ ................. 264a (‘‘commercial 

item’’) 

103 

............ 314A (‘‘nondevelopmental item’’)......... ................. 264a 

(‘‘nondevelopmental 

item’’) 

110 

............ 314A (‘‘component’’) ...... ........ ................. 264a (‘‘component’’) 105 

............ 314A (‘‘commercial component’’)......... ................. 264a (‘‘commercial 

component’’) 

102 

............ 314B ............................... ........ ................. 264b 3307 

............ 315 .................................. ........ ................. 265 4705 

............ 316 .................................. ........ ................. 266 3105 

Oct. 29 787 ........ 633 .................................. 63 1024 ........ 10d 8303 

1950 

Sept. 5 849 ........ 10(a) ............................... 64 591 .......... 256a 4707 

1952 

July 14 739 ........ ......................................... 66 627 .......... 113, 113 note ........................
H. R. 1107—183 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

1954 

May 11 199 ........ 1 ...................................... 68 81 ............ 321 ........................

............ 2 ...................................... 68 81 ............ 322 ........................

1957 

July 1 ... 85–75 .... (last par. on p. 251) ...... 71 251 .......... 6a ........................

1961 

Aug. 3 .. 87–125 .. 301 .................................. 75 279 .......... 6b ........................

1962 

Sept. 5 87–638 .. ......................................... 76 437 .......... 254a 4708 

1965 

July 27 89–90 .... (2d par. on p. 276) ......... 79 276 .......... 6a–1 6102 

Oct. 22 89–286 .. 1 ...................................... 79 1034 ........ 351 note ........................

............ 2(a) (words before par. 

(1) related to applicability).

79 1034 ........ 351 6702 

............ 2(a) (words before par. 

(1) related to required 

contract terms), (1)– 

(5).

79 1034 ........ 351 6703 

............ 2(b) ................................. 79 1034 ........ 351 6704 

............ 3 ...................................... 79 1035 ........ 352 6705 

............ 4 ...................................... 79 1035 ........ 353 6707 

............ 5(a) ................................. 79 1035 ........ 354 6706 

............ 5(b) ................................. 79 1035 ........ 354 6705 

............ 6 ...................................... 79 1035 ........ 355 6707 

............ 7 ...................................... 79 1035 ........ 356 6702 

............ 8 ...................................... 79 1036 ........ 357 6701 

............ 9 ...................................... 79 1036 ........ 351 note ........................

............ 10 .................................... ........ ................. 358 6707 

1974 

Aug. 30 93–400 .. 4(1) ................................. 88 797 .......... 403 133 

............ 4(2) ................................. 88 797 .......... 403 111 

............ 4(3) ................................. 88 797 .......... 403 112 

............ 4(4) ................................. 88 797 .......... 403 114 

............ 4(5) ................................. ........ ................. 403 132 

............ 4(6) ................................. ........ ................. 403 107 

............ 4(7) ................................. ........ ................. 403 113 

............ 4(8) ................................. ........ ................. 403 116 

............ 4(9) ................................. ........ ................. 403 109 

............ 4(10) (‘‘item’’, ‘‘item of 

supply’’).

........ ................. 403 108 

............ 4(10) (‘‘supplies’’) ........... ........ ................. 403 115 

............ 4(11) ............................... ........ ................. 403 134 

............ 4(12) ............................... ........ ................. 403 103 

............ 4(13) ............................... ........ ................. 403 110 

............ 4(14) ............................... ........ ................. 403 105 

............ 4(15) ............................... ........ ................. 403 102 

............ 4(16) ............................... ........ ................. 403 131 

............ 4(17) ............................... ........ ................. 403 1301 

............ 5(a) ................................. 88 797 .......... 404 1101 

............ 5(b) ................................. 88 797 .......... 404 1102 

............ 6(a)–(c) ........................... 88 797 .......... 405 1121 

............ 6(d), (e) ........................... 88 797 .......... 405 1122 

............ 6(f) .................................. 88 797 .......... 405 1121 

............ 6(g) ................................. 88 797 .......... 405 1122 

............ 6(h)(1) ............................. 88 797 .......... 405 1130 

............ 6(h)(2) ............................. 88 797 .......... 405 2305 

............ 6(i) .................................. 88 797 .......... 405 1125 

............ 6(j) .................................. ........ ................. 405 1126 

............ 6(k) ................................. ........ ................. 405 1131 

............ 7 ...................................... 88 798 .......... 406 1701 

............ 9 ...................................... 88 799 .......... 408 1121 

............ 11 .................................... 88 799 .......... 410 1101 

............ 12 .................................... 88 799 .......... 411 1122 

............ 14(a) ............................... 88 800 .......... 412 2307 

............ 14(b) ............................... 88 800 .......... 412 2306 

............ 15 .................................... ........ ................. 413 1124 
H. R. 1107—184 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

............ 16 .................................... ........ ................. 414 1702 

............ 16A(a)–(c) ....................... ........ ................. 414b 1311 

............ 16A(d), (e) ...................... ........ ................. 414b 1312 

............ 18 .................................... ........ ................. 416 1708 

............ 19 .................................... ........ ................. 417 1712 

............ 20 .................................... ........ ................. 418 1705 

............ 21 .................................... ........ ................. 418a 2302 

............ 22 .................................... ........ ................. 418b 1707 

............ 23 .................................... ........ ................. 419 1709 

............ 25(a), (b) ......................... ........ ................. 421 1302 

............ 25(c)–(f) .......................... ........ ................. 421 1303 

............ 26(a)–(e) ......................... ........ ................. 422 1501 

............ 26(f)–(h)(1) ..................... ........ ................. 422 1502 

............ 26(h)(2)–(4) .................... ........ ................. 422 1503 

............ 26(i) ................................ ........ ................. 422 ........................

............ 26(j) ................................ ........ ................. 422 1504 

............ 26(k) ............................... ........ ................. 422 1505 

............ 26(l) ................................ ........ ................. 422 1506 

............ 27(a), (b) ......................... ........ ................. 423 2102 

............ 27(c) ................................ ........ ................. 423 2103 

............ 27(d) ............................... ........ ................. 423 2104 

............ 27(e) ............................... ........ ................. 423 2105 

............ 27(f) ................................ ........ ................. 423 2101 

............ 27(g) ............................... ........ ................. 423 2106 

............ 27(h) ............................... ........ ................. 423 2107 

............ 29 .................................... ........ ................. 425 1304 

............ 30 .................................... ........ ................. 426 2301 

............ 31 .................................... ........ ................. 427 1901 

............ 32 .................................... ........ ................. 428 1902 

............ 32A ................................. ........ ................. 428a 1903 

............ 33 .................................... ........ ................. 429 1905 

............ 34 .................................... ........ ................. 430 1906 

............ 35(a), (b) ......................... ........ ................. 431 1907 

............ 35(c) ................................ ........ ................. 431 104 

............ 35A ................................. ........ ................. 431a 1908 

............ 36 .................................... ........ ................. 432 1711 

............ 37 .................................... ........ ................. 433 1703 

............ 38 .................................... ........ ................. 434 2308 

............ 39 .................................... ........ ................. 435 1127 

............ 40 .................................... ........ ................. 436 2309 

............ 41 .................................... ........ ................. 437 2310 

............ 42 .................................... ........ ................. 438 7105 

............ 43 .................................... ........ ................. 439 1710 

............ 44 .................................... ........ ................. 440 2312 

1978 

Oct. 24 95–507 .. 222 (1st sentence) ......... 92 1771 ........ 405a 1121 

............ 222 (last sentence) ........ 92 1771 ........ 405a 1123 

Nov. 1 .. 95–563 .. 1 ...................................... 92 2383 ........ 601 note ........................

............ 2 ...................................... 92 2383 ........ 601 7101 

............ 3 ...................................... 92 2383 ........ 602 7102 

............ 4 ...................................... 92 2384 ........ 603 7102 

............ 5 ...................................... 92 2384 ........ 604 7103 

............ 6(a) (1st, 2d sentences) 92 2384 ........ 605 7103 

............ 6(a) (3d, 4th sentences) ........ ................. 605 7103 

............ 6(a) (5th–last sentences), (b), (c)(1)–(5).92 2384 ........ 605 7103 

............ 6(c)(6), (7), (d), (e) .......... ........ ................. 605 7103 

............ 7 ...................................... 92 2385 ........ 606 7104 

............ 8(a)–(e) ........................... 92 2385 ........ 607 7105 

............ 8(f) .................................. 92 2386 ........ 607 7106 

............ 8(g) ................................. 92 2387 ........ 607 7107 

............ 9 ...................................... 92 2387 ........ 608 7106 

............ 10(a) ............................... 92 2388 ........ 609 7104 

............ 10(b)–(e) ......................... 92 2388 ........ 609 7107 

............ 10(f) ................................ ........ ................. 609 7107 

............ 11 .................................... 92 2388 ........ 610 7105 

............ 12 .................................... 92 2389 ........ 611 7109 

............ 13 .................................... 92 2389 ........ 612 7108 

............ 15 .................................... 92 2391 ........ 613 ........................

............ 16 .................................... 92 2391 ........ 601 note ........................
H. R. 1107—185 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

1984 

Oct. 30 98–577 .. 502 .................................. 98 3085 ........ 414a 1706 

1988 

Oct. 1 ... 100–463 8141 ................................ 102 2270–47 .. 405b 2304 

Oct. 25 100–533 502 .................................. 102 2697 ........ 417a 1713 

Nov. 18 100–690 5151 ................................ 102 4304 ........ 701 note ........................

............ 5152 ................................ 102 4304 ........ 701 8102 

............ 5153 ................................ 102 4306 ........ 702 8103 

............ 5154 ................................ 102 4307 ........ 703 8104 

............ 5155 ................................ 102 4307 ........ 704 8105 

............ 5156 ................................ 102 4308 ........ 705 8106 

............ 5157, 5158 ..................... 102 4308 ........ 706, 707 8101 

............ 5160 ................................ 102 4308 ........ 701 note ........................

1992 

Oct. 29 102–572 907(a)(3) ......................... 106 4518 ........ 611 note 7109 

1993 

Nov. 30 103–160 849(c), (d) ....................... 107 1725 ........ 10b–2 8304 

1994 

Oct. 13 103–355 1054(b) ........................... 108 3265 ........ 253h note 4102 

............ 8002 ................................ 108 3386 ........ 264 note 3307 

1996 

Sept. 23 104–201 827 .................................. 110 2611 ........ 10b–3 8305 

1997 

June 12 105–18 .. 7004 ................................ 111 192 .......... 253l–1 3904 

1999 

Sept. 29 106–57 .. 207 .................................. 113 423 .......... 253l–2 3904 

Oct. 5 ... 106–65 .. 804 .................................. 113 704 .......... 253h note 4104 

2000 

Dec. 21 106–554 1(a)(2) [title I, § 101] ..... 114 2763A– 

100.

253l–3 3904 

............ 1(a)(2) [title I, § 110] ..... 114 2763A– 

108.

253l–4 3904 

2003 

Feb. 20 108–7 .... div. H, title I, § 5 ........... 117 350 .......... 253l–5 3904 

............ div. H, title I, § 104 ....... 117 354 .......... 6a–3 6102 

............ div. H, title I, § 1002 ..... 117 357 .......... 253l–6 3904 

............ div. H, title I, § 1102 ..... 117 370 .......... 6a–4 6102 

............ div. H, title I, § 1202 ..... 117 373 .......... 253l–7 3904 

Aug. 15 108–72 .. 4 ...................................... 117 889 .......... 253l–8 3904 

Nov. 24 108–136 1412(a) ........................... 117 1664 ........ 433 note 1703 

............ 1413 ................................ 117 1665 ........ 433 note 1703 

............ 1414 ................................ 117 1666 ........ 433 note 1128 

............ 1428 ................................ 117 1670 ........ 253a note 3306 

............ 1431(b) ........................... 117 1671 ........ 405 note 1129 

............ 1441 ................................ 117 1673 ........ 428a note 1904 

2004 

Oct. 28 108–375 807(c) .............................. 118 2011 ........ 431a note 1908 

2008 

Jan. 28 110–181 855 .................................. 122 251 .......... 433a 1704 

June 30 110–252 6102, 6103 ..................... 122 2386, 

2387.

251 note 3509 

Oct. 14 110–417 [div. A], title VIII, 

841(a).

122 4537 ........ 405c(a) 2303 

............ [div. A], title VIII, 

841(c).

122 4539 ........ 405c(c) 2303 

............ [div. A], title VIII, 

863(a)–(e).

122 4547 ........ 253h note 3302 

............ [div. A], title VIII, 

864(a), (b), (d), (e), 

(f)(2), (g).

122 4549 ........ 254 note 3906 

............ [div. A], title VIII, 866 .. 122 4551 ........ 254b note 4710 
H. R. 1107—186 

Schedule of Laws Repealed—Continued 

Statutes at Large 

Date 

Chapter 

or Public 

Law 

Section 

Statutes at Large U.S. Code (title 41 unless otherwise 

specified) 

Volume Page Existing Proposed 

............ [div. A], title VIII, 867 .. 122 4551 ........ 251 note 4711 

............ [div. A], title VIII, 868 .. 122 4552 ........ 254b note 3501 

............ [div. A], title VIII, 869 .. 122 4553 ........ 433a note 1704 

............ [div. A], title VIII, 872 .. 122 4555 ........ 417b 2313 

............ [div. A], title VIII, 

874(a).

122 4558 ........ 405 note 2311 

Revised Statutes 

Revised Statutes Section 

United States Code (title 41) 

Existing Proposed 

3709 ................................................................. 5 6101 

3710 ................................................................. 8 6103 

3732 ................................................................. 11 6301 

3733 ................................................................. 12 6303 

3735 ................................................................. 13 6304 

3736 ................................................................. 14 6301 

3737 ................................................................. 15 6305 

3741 ................................................................. 22 6306 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.