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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1587 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1587

     To revise and streamline the acquisition laws of the Federal 
                  Government, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             October 26 (legislative day, October 13), 1993

Mr. Glenn (for himself, Mr. Bingaman, Mr. Levin, Mr. Nunn, Mr. Bumpers, 
and Mr. Lieberman) introduced the following bill; which was read twice 
         and referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
     To revise and streamline the acquisition laws of the Federal 
                  Government, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Acquisition Streamlining Act 
of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  subpart a--competition requirements
Sec. 1001. References to Federal Acquisition Regulation.
Sec. 1002. Exclusion of particular sources.
Sec. 1003. Approval for use of noncompetitive procedures.
Sec. 1004. Reference to head of a contracting activity.
Sec. 100subpart b--planning, solicitation, evaluation, and award
Sec. 1011. Source selection factors.
Sec. 1012. Solicitation provision regarding evaluation of purchase 
                            options.
Sec. 1013. Prompt notice of award.
Sec. 1014. Post-award debriefings.
Sec. 1015. Protest file.
Sec. 1016. Award of csubpart c--kinds of contractsement of protests.
Sec. 1021. Secretarial determination regarding use of cost type or 
                            incentive contract.
Sec. subpart d--miscellaneous provisions for the encouragement of 
                              competition
Sec. 1031. Encouragement of competition and cost savings.
Sec. 1032. Repeal of requirement for annual report by advocates for 
                            competition.
                 Psubpart a--competition requirementss
Sec. 1051. References to Federal Acquisition Regulation.
Sec. 1052. Exclusion of particular sources.
Sec. 1053. Approval for use of noncompetitive procedures.
Sec. 1054. Reference to head of a contracting activity.
Sec. 105subpart b--planning, solicitation, evaluation, and award
Sec. 1061. Solicitation, evaluation, and award.
Sec. 1062. Solicitation provision regarding evaluation of purchase 
                            options.
Sec. 1063. Prompt notice of award.
Sec. 1064. Post-award debriefings.
Sec. 1065. Protest file.
Sec. 1066. Award of csubpart c--kinds of contractsement of protests.
Sec. 1071. Agency head determination regarding use of cost type or 
                            incentive contract.
                    Part III--Acquisitions Generally

Sec. 1091. Repeal of requirement for annual report on competition.
                   Subtitle B--Truth in Negotiations

                  Part I--Armed Services Acquisitions

Sec. 1201. Stabilization of dollar threshold of applicability.
Sec. 1202. Exceptions to cost or pricing data requirements.
Sec. 1203. Limitation on authority to require a submission not 
                            otherwise required.
Sec. 1204. Additional special rules for commercial items.
Sec. 1205. Right of United States to examine contractor records.
Sec. 1206. Required regulations.
Sec. 1207. Consistency of time references.
Sec. 1208. Repeal of superseded provision.
                 Part II--Civilian Agency Acquisitions

Sec. 1251. Revision of civilian agency provisions to ensure uniform 
                            treatment of cost or pricing data.
Sec. 1252. Repeal of obsolete provision.
                  Subtitle C--Research and Development

Sec. 1301. Delegation of contracting authority.
Sec. 1302. Research projects.
Sec. 1303. Elimination of inflexible terminology regarding coordination 
                            and communication of defense research 
                            activities.
                    Subtitle D--Procurement Protests

              Part I--Protests to the Comptroller General

Sec. 1401. Protest defined.
Sec. 1402. Review of protests and effect on contracts pending decision.
Sec. 1403. Decisions on protests.
Sec. 1404. Regulations.
                Part II--Protests in the Federal Courts

Sec. 1421. Nonexclusivity of remedies.
Sec. 1422. Jurisdiction of the United States Court of Federal Claims.
    Part III--Protests in Procurements of Automatic Data Processing

Sec. 1431. Revocation of delegations of procurement authority.
Sec. 1432. Authority of the General Services Administration Board of 
                            Contract Appeals.
Sec. 1433. Periods for certain actions.
Sec. 1434. Dismissals of protests.
Sec. 1435. Award of costs.
Sec. 1436. Dismissal agreements.
Sec. 1437. Jurisdiction of district courts.
Sec. 1438. Matters to be covered in regulations.
Sec. 1439. Definitions.
Sec. 1440. Oversight of acquisition of automatic data processing 
                            equipment by Federal agencies.
               Subtitle E--Definitions and Other Matters

                  Part I--Armed Services Acquisitions

Sec. 1501. Definitions.
Sec. 1502. Delegation of procurement functions.
Sec. 1503. Determinations and decisions.
Sec. 1504. Undefinitized contractual actions: restrictions.
Sec. 1505. Production special tooling and production special test 
                            equipment: contract terms and conditions.
Sec. 1506. Regulations for bids.
Sec. 1507. Repeal of executed requirement relating to certificate of 
                            independent price determination in certain 
                            Department of Defense contract 
                            solicitations.
                 Part II--Civilian Agency Acquisitions

Sec. 1551. Definitions.
Sec. 1552. Delegation of procurement functions.
Sec. 1553. Determinations and decisions.
Sec. 1554. Undefinitized contractual actions: restrictions.
Sec. 1555. Repeal of amendments to uncodified title.
                   TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                  Part I--Armed Services Acquisitions

Sec. 2001. Contract financing.
Sec. 2002. Contracts: vouchering procedures.
                 Part II--Civilian Agency Acquisitions

Sec. 2051. Contract financing.
                      Subtitle B--Cost Principles

                  Part I--Armed Services Acquisitions

Sec. 2101. Allowable contract costs.
Sec. 2102. Contract profit controls during emergency periods.
                 Part II--Civilian Agency Acquisitions

Sec. 2151. Allowable contract costs.
                    Part III--Acquisitions Generally

Sec. 2191. Travel expenses of government contractors.
                Subtitle C--Audit and Access to Records

                  Part I--Armed Services Acquisitions

Sec. 2201. Consolidation and revision of authority to examine records 
                            of contractors.
                 Part II--Civilian Agency Acquisitions

Sec. 2251. Authority to examine records of contractors.
                 Subtitle D--Cost Accounting Standards

Sec. 2301. Repeal of obsolete deadline regarding procedural regulations 
                            for the Cost Accounting Standards Board.
 Subtitle E--Administration of Contract Provisions Relating to Price, 
                     Delivery, and Product Quality

                  Part I--Armed Services Acquisitions

Sec. 2401. Procurement of critical aircraft and ship spare parts; 
                            quality control.
Sec. 2402. Contractor guarantees regarding weapon systems.
Sec. 2403. Repeal of requirement for complete delivery of subsistence 
                            supplies at specific place upon inspection.
                    Part II--Acquisitions Generally

Sec. 2451. Section 3737 of the Revised Statutes: expansion of authority 
                            to prohibit setoffs against assignees; 
                            reorganization of section; revision of 
                            obsolete provisions.
Sec. 2452. Repeal of requirement for deposit of contracts with GAO.
                    Subtitle F--Claims and Disputes

                  Part I--Armed Services Acquisitions

Sec. 2501. Certification of contract claims.
                    Part II--Acquisitions Generally

Sec. 2551. Concurrent jurisdiction of United States district courts 
                            under the Little Tucker Act.
Sec. 2552. Contract Disputes Act improvements.
         TITLE III--SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES

                   Subtitle A--Major Systems Statutes

Sec. 3001. Requirement for independent cost estimates and manpower 
                            estimates before development or production.
Sec. 3002. Enhanced program stability.
Sec. 3003. Repeal of requirement for Defense Enterprise Programs.
Sec. 3004. Repeal of requirement for competitive prototyping in major 
                            programs.
Sec. 3005. Repeal of requirement for competitive alternative sources in 
                            major programs.
                      Subtitle B--Testing Statutes

Sec. 3011. Repeal of testing requirement for wheeled or tracked 
                            vehicles.
Sec. 3012. Major systems and munitions programs: survivability and 
                            lethality testing.
Sec. 3013. Operational test and evaluation of defense acquisition 
                            programs.
Sec. 3014. Low-rate initial production of new systems.
                   Subtitle C--Service Specific Laws

Sec. 3021. Industrial mobilization.
Sec. 3022. Industrial mobilization: plants; lists; Board on 
                            Mobilization of Industries Essential for 
                            Military Preparedness.
Sec. 3023. Procurement for experimental purposes.
Sec. 3024. Repeal of authority for procurement of production equipment.
Sec. 3025. Availability of Department of Defense samples, drawings, 
                            information, equipment, materials, and 
                            certain services.
Sec. 3026. Repeal of duplicative general procurement authority.
Sec. 3027. Repeal of authority to delegate the procurement of Army 
                            rations.
Sec. 3028. Repeal of authority to purchase exceptional subsistence 
                            supplies without advertising.
Sec. 3029. Repeal of authority to obtain assistance of United States 
                            mapping agencies.
Sec. 3030. Repeal of authority to reclaim unserviceable ammunition.
Sec. 3031. Gratuitous services of officers of certain reserve 
                            components.
Sec. 3032. Civil Reserve Air Fleet.
Sec. 3033. Repeal of Navy authority regarding research and development, 
                            procurement, and construction of guided 
                            missiles.
Sec. 3034. Exchange of scientific personnel.
Sec. 3035. Repeal of authority for Secretary of the Navy to provide 
                            temporary relief for contractors and 
                            contractor employees from losses caused by 
                            enemy action.
Sec. 3036. Repeal of authority for Secretary of the Navy to sell 
                            degaussing equipment.
Sec. 3037. Repeal of authority for alternative use of appropriations 
                            for construction or conversion of vessels.
Sec. 3038. Repeal of authority for conversion of combatant and 
                            auxiliary naval vessels.
Sec. 3039. Construction of combatant and escort vessels and assignment 
                            of vessel projects.
Sec. 3040. Repeal of requirement for estimates in connection with bids 
                            on construction of naval vessels.
Sec. 3041. Repeal of requirement for construction of vessels on Pacific 
                            coast.
Sec. 3042. Fitness of naval vessels: examination; striking unfit 
                            vessels; disposal.
Sec. 3043. Repeal of policy on constructing combatant vessels.
Sec. 3044. Naval salvage facilities.
 Subtitle D--Department of Defense Commercial and Industrial Activities

Sec. 3051. Factories and arsenals: manufacture at.
Sec. 3052. Accounting requirement for contracted advisory and 
                            assistance services.
               Subtitle E--Fuel- and Energy-Related Laws

Sec. 3061. Liquid fuels and natural gas: contracts for storage, 
                            handling, or distribution.
Sec. 3062. Acquisition of petroleum and natural gas: authority to waive 
                            procedures.
                      Subtitle F--Fiscal Statutes

Sec. 3071. Disbursement of funds of military department to cover 
                            obligations of another agency of Department 
                            of Defense.
                       Subtitle G--Miscellaneous

Sec. 3081. Obligation of funds: limitation.
Sec. 3082. Repeal of provisions for the encouragement of aviation.
Sec. 3083. Repeal of requirements regarding product evaluation 
                            activities.
Sec. 3084. Repeal of price adjustment authority and purchase authority 
                            relating to the procurement of milk.
Sec. 3085. Codification and revision of limitation on lease of vessels, 
                            aircraft, and vehicles.
  TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL 
                    BUSINESS, AND MISCELLANEOUS LAWS

              Subtitle A--Simplified Acquisition Threshold

                   Part I--Establishment of Threshold

Sec. 4001. Simplified acquisition threshold.
                 Part II--Simplification of Procedures

Sec. 4011. Simplified acquisition procedures.
Sec. 4012. Small business reservation.
Sec. 4013. Procurement notice.
  Part III--Inapplicability of Laws to Acquisitions Not in Excess of 
                    Simplisubpart a--generallyeshold
Sec. 4021. Inapplicability of future enacted procurement laws to 
                            contracts not exceeding the simplified 
                 subpart b--armed services acquisitions
Sec. 4031. Inapplicability of requirement for contract clause regarding 
                            contingent fees.
Sec. 4032. Inapplicability of prohibition on limiting subcontractor 
                            direct sales to the United States.
Sec. 4033. Inapplicability of authority to examine books and records of 
                            contractors.
Sec. 4034. Inapplicability of requirement to identify suppliers and 
                            sources of supplies.
Sec. 4035. Inapplicability of prohibition against doing business with 
                            certain offerors or contractors.
Sec. 4036. Inapplicability of preference for use of United States 
                            vessels for transporting supplies of the 
                subpart c--civilian agency acquisitions
Sec. 4041. Inapplicability of requirement for contract clause regarding 
                            contingent fees.
Sec. 4042. Inapplicability of prohibition on limiting subcontractor 
                            direct sales to the United States.
Sec. 4043. Inapplicability of authority to examine books and records of 
                   subpart d--acquisitions generally
Sec. 4051. Inapplicability of limitation on use of funds to influence 
                            certain Federal actions.
Sec. 4052. Inapplicability of requirement for contract clause relating 
                            to kickbacks.
Sec. 4053. Inapplicability of the Miller Act to contracts below the 
                            simplified acquisition threshold.
Sec. 4054. Inapplicability of Contract Work Hours and Safety Standards 
                            Act.
Sec. 4055. Inapplicability of the Drug-Free Workplace Act of 1988.
Sec. 4056. Inapplicability of a requirement in the Merchant Marine Act, 
                            1936, to ship on American-flag commercial 
                            vessels.
Sec. 4057. Inapplicability of certain procurement integrity 
                            requirements.
                     Part IV--Conforming Amendments

Sec. 4071. Armed services acquisitions.
Sec. 4072. Civilian agency acquisitions.
Sec. 4073. Office of Federal Procurement Policy Act.
Sec. 4074. Small Business Act.
                    Part V--Revision of Regulations

Sec. 4081. Revision required.
           Subtitle B--Socioeconomic and Small Business Laws

Sec. 4101. Armed services acquisitions.
Sec. 4102. Acquisitions generally.
Sec. 4103. Direct contracting with small businesses.
               Subtitle C--Miscellaneous Acquisition Laws

Sec. 4151. Repeal of obsolete laws relating to procurement of naval 
                            aircraft and components.
Sec. 4152. Revision and codification of prohibition on use of funds for 
                            documenting economic or employment impact 
                            of certain acquisition programs.
Sec. 4153. Restriction on use of noncompetitive procedures for 
                            procurement from a particular source.
                     TITLE V--INTELLECTUAL PROPERTY

                    Subtitle A--Technology Transfer

Sec. 5001. Copyright protection for computer programs of the Federal 
                            Government.
Sec. 5002. Use of copyrighted works of the Federal Government.
Sec. 5003. Distribution of royalties received by Federal agencies.
Sec. 5004. Exception to prohibition on copyright protection for works 
                            of the Federal Government.
 Subtitle B--Government Use of Private Patents, Copyrights, and Trade 
                                Secrets

Sec. 5011. Government use or manufacture of a patented invention.
Sec. 5012. Department of Defense acquisition of intellectual property 
                            rights.
                     TITLE VI--STANDARDS OF CONDUCT

                     Subtitle A--Ethics Provisions

Sec. 6001. Amendments to Office of Federal Procurement Policy Act.
Sec. 6002. Amendments to title 18, United States Code.
Sec. 6003. Repeal of superseded and obsolete laws.
Sec. 6004. Implementation.
                   Subtitle B--Additional Amendments

Sec. 6051. Contracting functions performed by Federal personnel.
Sec. 6052. Repeal of executed requirement for study and report.
Sec. 6053. Waiting period for significant changes proposed for 
                            acquisition regulations.
                TITLE VII--DEFENSE TRADE AND COOPERATION

Sec. 7001. Purchases of foreign goods.
Sec. 7002. International cooperative agreements.
Sec. 7003. Acquisition, cross-servicing agreements, and 
                            standardization.
                      TITLE VIII--COMMERCIAL ITEMS

Sec. 8001. Definitions.
Sec. 8002. Preference for acquisition of commercial items and 
                            nondevelopmental items.
Sec. 8003. Acquisition of commercial items.
Sec. 8004. Class waiver of applicability of certain laws.
Sec. 8005. Inapplicability of certain provisions of law.
Sec. 8006. Flexible deadlines for submission of offers of commercial 
                            items.
Sec. 8007. Advocate for Acquisition of Commercial and Nondevelopmental 
                            Items.
Sec. 8008. Provisions not affected.
Sec. 8009. Comptroller General review of Federal Government use of 
                            market research.
                        TITLE IX--EFFECTIVE DATE

Sec. 9001. Effective date.

                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  PART I--ARMED SERVICES ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1001. REFERENCES TO FEDERAL ACQUISITION REGULATION.

    Section 2304 of title 10, United States Code, is amended--
            (1) in subsection (a)(1)(A), by striking out 
        ``modifications'' and all that follows through ``note)'' and 
        inserting in lieu thereof ``Federal Acquisition Regulation''; 
        and
            (2) in subsection (g)(1), by striking out ``regulations 
        modified'' and all that follows through ``note)'' and inserting 
        in lieu thereof ``Federal Acquisition Regulation''.

SEC. 1002. EXCLUSION OF PARTICULAR SOURCES.

    Section 2304(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The determination required of the head of an agency in 
paragraph (1) may not be made for a class of purchases or contracts.''; 
and
            (3) in paragraph (4), as redesignated by paragraph (1), by 
        striking out ``paragraphs (1) and (2)'' and inserting in lieu 
        thereof ``paragraphs (1) and (3)''.

SEC. 1003. APPROVAL FOR USE OF NONCOMPETITIVE PROCEDURES.

    Section 2304(f)(1)(B)(i) of title 10, United States Code, is 
amended by inserting before the semicolon at the end the following: 
``or by an official referred to in clause (ii), (iii), or (iv)''.

SEC. 1004. REFERENCE TO HEAD OF A CONTRACTING ACTIVITY.

    Section 2304(f) of title 10, United States Code, is amended--
            (1) in paragraph (1)(B)(ii)--
                    (A) by striking out ``head of the procuring 
                activity'' and inserting in lieu thereof ``head of the 
                contracting activity''; and
                    (B) by striking out ``head of the procuring 
                activity's'' and inserting in lieu thereof ``head of 
                the contracting activity's''; and
            (2) in paragraph (6)(A), by striking out ``head of a 
        procuring activity'' and inserting in lieu thereof ``head of a 
        contracting activity''.

SEC. 1005. TASK AND DELIVERY ORDER CONTRACTS.

    (a) Authority.--
            (1) In general.--Chapter 137 of title 10, United States 
        Code, is amended by inserting after section 2304 the following 
        new section:
``Sec. 2304a. Task and delivery order contracts
    ``(a) Authority To Award.--Subject to the requirements of this 
section, the head of an agency may enter into a contract that does not 
procure or specify a firm quantity of supplies or services (other than 
a minimum or maximum quantity) and that provides for the issuance of 
delivery orders or task orders during the specified period of the 
contract. The head of an agency may enter into such a contract only 
under the authority of this section.
    ``(b) Limitation on Contract Period.--The period of a contract 
referred to in subsection (a), including all periods of extensions of 
the contract under options, modifications, or otherwise, may not exceed 
3 years, except that, when multiple contracts are awarded under 
subsection (c)(4) pursuant to the same solicitation, the period of each 
such contract may exceed 3 years but may not exceed 5 years.
    ``(c) Award Procedures.--(1) The head of an agency may use 
procedures other than competitive procedures to enter into a contract 
referred to in subsection (a) only if an exception in subsection (c) of 
section 2304 of this title applies to the contract and the use of such 
procedures is approved in accordance with subsection (f) of such 
section.
    ``(2) The notice required by section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) 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 contract in 
a manner that would reasonably enable a potential offeror to decide 
whether to request the solicitation and consider submitting an offer.
    ``(3) The solicitation shall include the following:
            ``(A) 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, if any.
            ``(B) The maximum quantity or dollar value of supplies or 
        services to be procured under the contract.
            ``(C) A statement of work, specifications, or other 
        description that reasonably describes the general scope, 
        nature, complexity, and purposes of the supplies or services to 
        be procured under the contract.
    ``(4)(A) The head of an agency may, on the basis of one 
solicitation, award separate contracts under this section for the same 
or similar supplies or services to two or more sources if the 
solicitation states that the head of the agency has the option to do 
so.
    ``(B) In any solicitation for an advisory and assistance services 
contract for a period in excess of 1 year, or for an amount (including 
all options) in excess of $10,000,000, the head of an agency shall 
include a statement that the head of the agency reserves the option--
            ``(i) to award separate contracts under subparagraph (A); 
        or
            ``(ii) to award only one contract if the head of the agency 
        determines in writing that only one of the offerers is capable 
        of providing the services required at the level of quality 
        required.
    ``(5) A contract referred to in subsection (a) shall contain the 
same information that is required by paragraph (3) to be included in 
the solicitation of offers for that contract.
    ``(d) Orders.--(1) The following actions are not required for a 
delivery order or task order issued under a contract entered into in 
accordance with this section:
            ``(A) A separate notice for such order under section 18 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 416) or 
        section 8(e) of the Small Business Act (15 U.S.C. 637(e)).
            ``(B) Except as provided in paragraph (2), a competition 
        (or a waiver of competition approved in accordance with section 
        2304(f) of this title) that is separate from that used for 
        entering into the contract.
    ``(2)(A) When multiple contracts are awarded under subsection 
(c)(4), each delivery order or task order issued under such contracts 
shall be competed among all of the contractors awarded such contracts 
unless the contracting officer determines in writing that--
            ``(i) the agency's need for the supplies or services 
        ordered is of such unusual urgency that competition would 
        result in unacceptable delays in fulfilling the agency's needs;
            ``(ii) the supplies or services ordered are so unique or 
        highly specialized that only one such contractor is capable of 
        providing the supplies or services required at the level of 
        quality required; or
            ``(iii) the delivery order or task order should be issued 
        on a sole-source basis in the interest of economy and 
        efficiency because it is a logical follow-on to a delivery 
        order or task order already issued on a competitive basis.
    ``(B) When a delivery order or task order is competed pursuant to 
subparagraph (A), the order shall include a statement of work that 
clearly specifies all tasks to be performed under the order.
    ``(3) A protest is not authorized in connection with the issuance, 
proposed issuance, or competing of a delivery order or task order 
except for a protest on the ground that the order increases the scope, 
period, or maximum value of the contract under which the order is 
issued.
    ``(e) Increases in Scope, Period, or Maximum Value of Contract.--
(1) A delivery order or task order may not increase the scope, period, 
or maximum value of the 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) Unless use of procedures other than competitive procedures is 
authorized by an exception in subsection (c) of section 2304 of this 
title and approved in accordance with subsection (f) of such section, 
competitive procedures shall be used for making such a modification.
    ``(3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15 
U.S.C. 637(e)).
    ``(f) Task Order Ombudsman.--Each head of an agency who awards 
multiple contracts under subsection (c)(4) shall appoint or designate a 
task order ombudsman who shall be responsible for reviewing complaints 
from the contractors on such contracts and ensuring that task orders 
are issued on a competitive basis when required under subsection 
(d)(2). The task order ombudsman shall be a senior agency official who 
is independent of the contracting officer for the contracts and may be 
the agency's competition advocate.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2304 the following new item:

``2304a. Task and delivery order contracts.''.
    (b) Repeal of Superseded Provision.--Section 2304 of title 10, 
United States Code, is amended by striking out subsection (j).
    (c) Conforming Amendment for Professional and Technical Services.--
Section 2331 of title 10, United States Code, is amended by striking 
out subsection (c).

        Subpart B--Planning, Solicitation, Evaluation, and Award

SEC. 1011. SOURCE SELECTION FACTORS.

    Section 2305(a) of title 10, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(i), by striking out 
                ``nonprice-related factors)'' and inserting in lieu 
                thereof ``nonprice-related factors and subfactors)''; 
                and
                    (B) in subparagraph (B)(ii), by striking out 
                subclause (I) and inserting in lieu thereof the 
                following:
                            ``(I) either a statement that the proposals 
                        are intended to be evaluated with, and award 
                        made after, discussions with the offerors, or a 
                        statement that the proposals are intended to be 
                        evaluated, and 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''; and
            (2) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
    ``(3)(A) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, the head of an agency--
            ``(i) shall clearly establish 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, and 
        prior experience of the offeror);
            ``(ii) shall include cost or price to the Government as an 
        evaluation factor that must be considered in the evaluation of 
        proposals; and
            ``(iii) shall disclose to offerors whether all evaluation 
        factors other than price or cost, when combined, are--
                    ``(I) significantly more important than price or 
                cost;
                    ``(II) approximately equal in importance to price 
                or cost; or
                    ``(III) significantly less important than price or 
                cost.
    ``(B) Nothing in this paragraph prohibits an agency from--
            ``(i) providing additional information in a solicitation, 
        including numeric weights for all evaluation factors; or
            ``(ii) stating in a solicitation that award will be made to 
        the offeror that meets the solicitation's mandatory 
        requirements at the lowest price or cost.''.

SEC. 1012. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE 
              OPTIONS.

    (a) Options for Additional Purchases.--Subsection (a) of section 
2305 of title 10, United States Code, as amended by section 1011, is 
further amended by adding at the end the following new paragraph:
    ``(4) The head of an agency, in issuing a solicitation for a 
contract to be awarded using sealed bid procedures, may not include in 
such solicitation a clause providing for the evaluation of prices under 
the contract for options to purchase additional supplies or services 
under the contract unless the head of the agency has determined that 
there is a reasonable likelihood that the options will be exercised.''.
    (b) Repeal of Superseded Provision.--Section 2301(a) of such title 
is amended--
            (1) by striking out paragraph (7);
            (2) by inserting ``and'' at the end of paragraph (5); and
            (3) by striking out ``; and'' at the end of paragraph (6) 
        and inserting in lieu thereof a period.

SEC. 1013. PROMPT NOTICE OF AWARD.

    (a) Sealed Bid Procedures.--Section 2305(b)(3) of title 10, United 
States Code, is amended by adding at the end the following: ``Within 3 
days after the date of contract award, the head of the agency shall 
notify all offerors not awarded the contract that the contract has been 
awarded.''.
    (b) Competitive Proposals Procedures.--Section 2305(b)(4)(B) of 
title 10, United States Code, is amended in the second sentence by 
striking out ``shall promptly notify'' and inserting in lieu thereof 
``, within 3 days after the date of contract award, shall notify''.

SEC. 1014. POST-AWARD DEBRIEFINGS.

    Section 2305(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5)(A) When a contract is awarded by an agency on the basis of 
competitive proposals, an unsuccessful offeror, upon written request 
received by the agency within 7 days after the date of contract award, 
shall be debriefed and furnished the basis for the selection decision 
and contract award. An employee of the agency shall debrief the offeror 
within 7 days after receipt of the request by the agency.
    ``(B) The debriefing shall provide the offeror with--
            ``(i) the agency's evaluation of the significant weak or 
        deficient factors in the offeror's offer;
            ``(ii) the overall evaluated cost of the offer of the 
        contractor awarded the contract and the overall evaluated cost 
        of the offer of the debriefed offeror;
            ``(iii) the overall ranking of all offers and the total 
        technical and cost scores of all offers;
            ``(iv) a summary of the rationale for the award;
            ``(v) in the case of a proposal that incorporates equipment 
        that is a commercial item, the make and model of the item 
        incorporated in the offer of the contractor awarded the 
        contract; and
            ``(vi) reasonable responses to 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 agency.
    ``(C) 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 of 
title 5, including information relating to--
            ``(i) trade secrets;
            ``(ii) privileged or confidential manufacturing processes 
        and techniques; and
            ``(iii) commercial and financial information that is 
        privileged or confidential, including cost breakdowns, profit, 
        indirect cost rates, and similar information.
    ``(D) Each solicitation for competitive proposals shall include a 
statement that information described in subparagraph (B) may be 
disclosed in post-award debriefings.
    ``(E) If, within one year after the date of the contract award and 
as a result of a successful procurement protest or otherwise, the 
agency seeks to fulfill the requirement under the contract either on 
the basis of a new solicitation of offers or on the basis of the best 
and final offers considered in the awarding of that contract, the 
agency shall provide each such offeror with--
            ``(i) all information provided in debriefings under this 
        paragraph regarding the offer of the contractor awarded the 
        contract; and
            ``(ii) all comparable information with respect to the 
        original offerors.
    ``(F) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 1015. PROTEST FILE.

    Section 2305 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(e)(1) 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 
agency, a protest is filed pursuant to the procedures in subchapter V 
of chapter 35 of title 31 and an actual or prospective offeror so 
requests, a file of the protest shall be established by the contracting 
activity and reasonable access shall be provided to actual or 
prospective offerors.
    ``(2) Information exempt from disclosure under the section 552 of 
title 5 may be redacted in a file established pursuant to paragraph (1) 
unless an applicable protective order provides otherwise.
    ``(3) Regulations implementing this subsection shall be consistent 
with the regulations regarding the preparation and submission of an 
agency's protest file (the so-called `rule 4 file') for protests to the 
General Services Board of Contract Appeals under the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.).''.

SEC. 1016. AWARD OF COSTS AND FEES IN AGENCY SETTLEMENT OF PROTESTS.

    Section 2305 of title 10, United States Code, as amended by section 
1015, is further amended by adding at the end the following new 
subsection:
    ``(f) If, in connection with a protest, the head of an agency 
determines that a solicitation, proposed award, or award does not 
satisfy the requirements of law or regulation, the head of the agency 
may take any action set out in subparagraphs (A) through (F) of section 
3554(b)(1) of title 31.''.

                     Subpart C--Kinds of Contracts

SEC. 1021. SECRETARIAL DETERMINATION REGARDING USE OF COST TYPE OR 
              INCENTIVE CONTRACT.

    Subsection (c) of section 2306 of title 10, United States Code, is 
repealed.

SEC. 1022. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Repeal of Unnecessary Cross Reference.--Subsection (f) of 
section 2306 of title 10, United States Code, is repealed.
    (b) Conforming Amendment.--Such section is amended by redesignating 
subsections (d), (e), (g), and (h) as subsections (c), (d), (e), and 
(f), respectively.
    (c) Neuterization of Reference.--Subsection (e)(1) of such section, 
as redesignated by subsection (b), is amended in the matter above 
clause (i) by striking out ``whenever he finds'' and inserting in lieu 
thereof ``whenever the head of the agency finds''.

     Subpart D--Miscellaneous Provisions for the Encouragement of 
                              Competition

SEC. 1031. ENCOURAGEMENT OF COMPETITION AND COST SAVINGS.

    (a) Transfer.--The text of section 2317 of title 10, United States 
Code--
            (1) is amended--
                    (A) by striking out ``The Secretary of Defense'' 
                and inserting in lieu thereof ``(c) Encouragement of 
                Competition and Cost Savings.--The Secretary''; and
                    (B) by striking out ``contracts covered by this 
                chapter'' and inserting in lieu thereof ``contracts of 
                the Department of Defense''; and
            (2) is transferred to section 1701 of title 10, United 
        States Code, and inserted at the end of such section.
    (b) Clerical Amendments.--Chapter 137 of title 10, United States 
Code, is amended--
            (1) by striking out the section heading of section 2317; 
        and
            (2) in the table of sections at the beginning of such 
        chapter, by striking out the item relating to section 2317.

SEC. 1032. REPEAL OF REQUIREMENT FOR ANNUAL REPORT BY ADVOCATES FOR 
              COMPETITION.

    Subsection (c) of section 2318 of title 10, United States Code, is 
repealed.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

                  Subpart A--Competition Requirements

SEC. 1051. REFERENCES TO FEDERAL ACQUISITION REGULATION.

    Section 303 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253) is amended--
            (1) in subsection (a)(1)(A), by striking out 
        ``modifications'' and all that follows through ``of 1984'' and 
        inserting in lieu thereof ``Federal Acquisition Regulation''; 
        and
            (2) in subsection (g)(1), by striking out ``regulations 
        modified'' and all that follows through ``of 1984,'' and 
        inserting in lieu thereof ``Federal Acquisition Regulation''.

SEC. 1052. EXCLUSION OF PARTICULAR SOURCES.

    Section 303(b) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(b)) is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The determination required of the agency head in paragraph 
(1) may not be made for a class of purchases or contracts.''; and
            (3) in paragraph (4), as redesignated by paragraph (1), by 
        striking out ``paragraphs (1) and (2)'' and inserting in lieu 
        thereof ``paragraphs (1) and (3)''.

SEC. 1053. APPROVAL FOR USE OF NONCOMPETITIVE PROCEDURES.

    Section 303(f)(1)(B)(i) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(i)) is amended by 
inserting before the semicolon at the end the following: ``or by an 
official referred to in clause (ii), (iii), or (iv)''.

SEC. 1054. REFERENCE TO HEAD OF A CONTRACTING ACTIVITY.

    Section 303(f)(1)(B)(ii) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(ii)) is amended by 
striking out ``head of the procuring activity'' and inserting in lieu 
thereof ``head of the contracting activity''.

SEC. 1055. TASK AND DELIVERY ORDER CONTRACTS.

    (a) Authority.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 
by inserting after section 303G the following new section:

                  ``task and delivery order contracts

    ``Sec. 303H. (a) Authority To Award.--Subject to the requirements 
of this section, an agency head may enter into a contract that does not 
procure or specify a firm quantity of supplies or services (other than 
a minimum or maximum quantity) and that provides for the issuance of 
delivery orders or task orders during the specified period of the 
contract. The agency head may enter into such a contract only under the 
authority of this section.
    ``(b) Contract Period Not To Exceed 3 Years.--The period of a 
contract referred to in subsection (a), including all periods of 
extensions of the contract under options, modifications, or otherwise, 
may not exceed 3 years, except that, when multiple contracts are 
awarded under subsection (c)(4) pursuant to the same solicitation, the 
period of each such contract may exceed 3 years but may not exceed 5 
years.
    ``(c) Award Procedures.--(1) An agency head may use procedures 
other than competitive procedures to enter into a contract referred to 
in subsection (a) only if an exception in subsection (c) of section 303 
applies to the contract and the use of such procedures is approved in 
accordance with subsection (f) of such section.
    ``(2) The notice required by section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) 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 contract in 
a manner that would reasonably enable a potential offeror to decide 
whether to request the solicitation and consider submitting an offer.
    ``(3) The solicitation shall include the following:
            ``(A) 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, if any.
            ``(B) The maximum quantity or dollar value of supplies or 
        services to be procured under the contract.
            ``(C) A statement of work, specifications, or other 
        description that reasonably describes the general scope, 
        nature, complexity, and purposes of the supplies or services to 
        be procured under the contract.
    ``(4)(A) An agency head may, on the basis of one solicitation, 
award separate contracts under this section for the same or similar 
supplies or services to two or more sources if the solicitation states 
that the agency head has the option to do so.
    ``(B) In any solicitation for an advisory and assistance services 
contract for a period in excess of 1 year, or for an amount (including 
all options) in excess of $10,000,000, an agency head shall--
            ``(i) provide for a multiple award under subparagraph (A); 
        and
            ``(ii) include a statement that the agency head may also 
        elect to award only one contract if the agency head determines 
        in writing that only one of the offerers is capable of 
        providing the services required at the level of quality 
        required.
    ``(5) A contract referred to in subsection (a) shall contain the 
same information that is required by paragraph (3) to be included in 
the solicitation of offers for that contract.
    ``(d) Orders.--(1) The following actions are not required for a 
delivery order or task order issued under a contract entered into in 
accordance with this section:
            ``(A) A separate notice for such order under section 18 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 416) or 
        section 8(e) of the Small Business Act (15 U.S.C. 637(e)).
            ``(B) Except as provided in paragraph (2), a competition 
        (or a waiver of competition approved in accordance with section 
        303(f)) that is separate from that used for entering into the 
        contract.
    ``(2)(A) When multiple contracts are awarded under subsection 
(c)(4), each delivery order or task order issued under such contracts 
shall be competed among all of the contractors awarded such contracts 
unless the contracting officer determines in writing that--
            ``(i) the agency's need for the supplies or services 
        ordered is of such unusual urgency that competition would 
        result in unacceptable delays in fulfilling the agency's needs;
            ``(ii) the supplies or services ordered are so unique or 
        highly specialized that only one such contractor is capable of 
        providing the supplies or services required at the level of 
        quality required; or
            ``(iii) the delivery order or task order should be issued 
        on a sole-source basis in the interest of economy and 
        efficiency because it is a logical follow-on to a delivery 
        order or task order already issued on a competitive basis.
    ``(B) When a delivery order or task order is competed pursuant to 
subparagraph (A), the order shall include a statement of work that 
clearly specifies all tasks to be performed under the order.
    ``(3) A protest is not authorized in connection with the issuance, 
proposed issuance, or competing of a delivery order or task order 
except for a protest on the ground that the order increases the scope, 
period, or maximum value of the contract under which the order is 
issued.
    ``(e) Increases in Scope, Period, or Maximum Value of Contract.--
(1) A delivery order or task order may not increase the scope, period, 
or maximum value of the 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) Unless use of procedures other than competitive procedures is 
authorized by an exception in subsection (c) of section 303 and 
approved in accordance with subsection (f) of such section, competitive 
procedures shall be used for making such a modification.
    ``(3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15 
U.S.C. 637(e)).
    ``(f) Task Order Ombudsman.--Each agency head who awards multiple 
contracts under subsection (c)(4) shall appoint or designate a task 
order ombudsman who shall be responsible for reviewing complaints from 
the contractors on such contracts and ensuring that task orders are 
issued on a competitive basis when required under subsection (d)(2). 
The task order ombudsman shall be a senior agency official who is 
independent of the contracting officer for the contracts and may be the 
agency's competition advocate.''.
    (b) Clerical Amendment.--The table of contents in the first section 
is amended by inserting after the item relating to section 303G the 
following new item:

``Sec. 303H. Task and delivery order contracts.''.

        Subpart B--Planning, Solicitation, Evaluation, and Award

SEC. 1061. SOLICITATION, EVALUATION, AND AWARD.

    (a) Content of Solicitation.--Section 303A of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253a) is amended--
            (1) in subsection (b)(1)(A)--
                    (A) by inserting ``and significant subfactors'' 
                after ``all significant factors''; and
                    (B) by striking out ``(including price)'' and 
                inserting ``(including cost or price, cost-related or 
                price-related factors and subfactors, and noncost-
                related or nonprice-related factors and subfactors)'';
            (2) in subsection (b)(1)(B), by inserting ``and 
        subfactors'' after ``factors'';
            (3) in subsection (b)(2)(B), by striking out clause (i) and 
        inserting in lieu thereof the following:
                            ``(i) either a statement that the proposals 
                        are intended to be evaluated with, and award 
                        made after, discussions with the offerors, or a 
                        statement that the proposals are intended to be 
                        evaluated, and 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''; and
            (4) by adding at the end the following new subsection:
    ``(c)(1) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, an agency head--
            ``(A) shall clearly establish 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, and 
        prior experience of the offeror);
            ``(B) shall include cost or price to the Government as an 
        evaluation factor that must be considered in the evaluation of 
        proposals; and
            ``(C) shall disclose to offerors whether all evaluation 
        factors other than price or cost, when combined, are--
                    ``(i) significantly more important than price or 
                cost;
                    ``(ii) approximately equal in importance to price 
                or cost; or
                    ``(iii) significantly less important than price or 
                cost.
    ``(2) Nothing in this subsection prohibits an agency from--
            ``(A) providing additional information in a solicitation, 
        including numeric weights for all evaluation factors; or
            ``(B) stating in a solicitation that award will be made to 
        the offeror that meets the solicitation's mandatory 
        requirements at the lowest price or cost.''.
    (b) Evaluation and Award.--Section 303B of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended--
            (1) in subsection (a), by inserting ``, and award a 
        contract,'' after ``competitive proposals'';
            (2) in subsection (c), by inserting ``in accordance with 
        subsection (a)'' in the second sentence after ``shall evaluate 
        the bids''; and
            (3) in subsection (d)--
                    (A) by striking out paragraph (1) and inserting in 
                lieu thereof the following:
    ``(1) An agency head shall evaluate competitive proposals in 
accordance with subsection (a) and may award a contract--
            ``(A) 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
            ``(B) based on the proposals received and without 
        discussions with the offerors (other than discussions conducted 
        for the purpose of minor clarification), provided that, as 
        required by section 303A(b)(2)(B)(i), the solicitation included 
        a statement that proposals are intended to be evaluated, and 
        award made, without discussions, unless discussions are 
        determined to be necessary.''; and
                    (B) by striking out paragraphs (2) and (3) and by 
                redesignating paragraph (4) as paragraph (2).
    (c) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to--
                    (A) solicitations for sealed bids or competitive 
                proposals issued after the end of the 180-day period 
                beginning on the date of the enactment of this Act; and
                    (B) contracts awarded pursuant to those 
                solicitations.
            (2) Authority to apply amendments early.--The head of an 
        executive agency may apply the amendments made by this section 
        to solicitations issued before the end of the period referred 
        to in paragraph (1). The head of the executive agency shall 
        publish in the Federal Register notice of any such earlier date 
        of application at least 10 days before that date.

SEC. 1062. SOLICITATION PROVISION REGARDING EVALUATION OF PURCHASE 
              OPTIONS.

    Section 303A of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253a), as amended by section 1061(a)(4), is 
further amended by adding at the end the following new subsection:
    ``(d) An agency head, in issuing a solicitation for a contract to 
be awarded using sealed bid procedures, may not include in such 
solicitation a clause providing for the evaluation of prices under the 
contract for options to purchase additional supplies or services under 
the contract unless the agency head has determined that there is a 
reasonable likelihood that the options will be exercised.''.

SEC. 1063. PROMPT NOTICE OF AWARD.

    (a) Sealed Bid Procedures.--Subsection (c) of section 303B of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253b) is amended by adding at the end the following: ``Within 3 days 
after the date of contract award, the agency head shall notify offerors 
not awarded the contract that the contract has been awarded.''.
    (b) Competitive Proposals Procedures.--Paragraph (2) of section 
303B(d) of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253b(d)), as redesignated by section 1061(b)(3)(B), is 
amended in the second sentence by striking out ``shall promptly 
notify'' and inserting in lieu thereof ``, within 3 days after the date 
of contract award, shall notify''.

SEC. 1064. POST-AWARD DEBRIEFINGS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b) is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e)(1) When a contract is awarded by an executive agency on the 
basis of competitive proposals, an unsuccessful offeror, upon written 
request received by the executive agency within 7 days after the date 
of contract award, shall be debriefed and furnished the basis for the 
selection decision and contract award. An employee of the executive 
agency shall debrief the offeror within 7 days after receipt of the 
request by the executive agency.
    ``(2) The debriefing shall provide the offeror with--
            ``(A) the executive agency's evaluation of the significant 
        weak or deficient factors in the offeror's offer;
            ``(B) the overall evaluated cost of the offer of the 
        contractor awarded the contract and the overall evaluated cost 
        of the offer of the debriefed offeror;
            ``(C) the overall ranking of all offers and the total 
        technical and cost scores of all offers;
            ``(D) a summary of the rationale for the award;
            ``(E) in the case of a proposal that incorporates equipment 
        that is a commercial item, the make and model of the item 
        incorporated in the offer of the contractor awarded the 
        contract; and
            ``(F) reasonable responses to 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.
    ``(3) 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 of 
title 5, United States Code, including information relating to--
            ``(A) trade secrets;
            ``(B) privileged or confidential manufacturing processes 
        and techniques; and
            ``(C) commercial and financial information that is 
        privileged or confidential, including cost breakdowns, profit, 
        indirect cost rates, and similar information.
    ``(4) Each solicitation for competitive proposals shall include a 
statement that information described in paragraph (2) may be disclosed 
in post-award debriefings.
    ``(5) If, within one year after the date of the contract award and 
as a result of a successful procurement protest or otherwise, the 
executive agency seeks to fulfill the requirement under the contract 
either on the basis of a new solicitation of offers or on the basis of 
the best and final offers considered in the awarding of that contract, 
the agency head shall provide each such offeror with--
            ``(A) all information provided in debriefings under this 
        paragraph regarding the offer of the contractor awarded the 
        contract; and
            ``(B) all comparable information with respect to the 
        original offerors.
    ``(6) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 1065. PROTEST FILE.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b), as amended by section 1064(1), is further 
amended by adding at the end the following:
    ``(h)(1) If, in the case of a solicitation for a contract issued 
by, or an award or proposed award of a contract by, an agency head, a 
protest is filed pursuant to the procedures in subchapter V of chapter 
35 of title 31, United States Code, and an actual or prospective 
offeror so requests, a file of the protest shall be established by the 
contracting activity and reasonable access shall be provided to actual 
or prospective offerors.
    ``(2) Information exempt from disclosure under section 552 of title 
5, United States Code, may be redacted in a file established pursuant 
to paragraph (1) unless an applicable protective order provides 
otherwise.
    ``(3) Regulations implementing this subsection shall be consistent 
with the regulations regarding the preparation and submission of an 
agency's protest file (the so-called `rule 4 file') for protests to the 
General Services Board of Contract Appeals under the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.).''.

SEC. 1066. AWARD OF COSTS AND FEES IN AGENCY SETTLEMENT OF PROTESTS.

    Section 303B of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253b), as amended by section 1066, is further 
amended by adding at the end the following new subsection:
    ``(i) If, in connection with a protest, an agency head determines 
that a solicitation, proposed award, or award does not satisfy the 
requirements of law or regulation, the agency head may take any action 
set out in subparagraphs (A) through (F) of section 3554(b)(1) of title 
31, United States Code.''.

                     Subpart C--Kinds of Contracts

SEC. 1071. AGENCY HEAD DETERMINATION REGARDING USE OF COST TYPE OR 
              INCENTIVE CONTRACT.

    Section 304(b) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254(b)) is amended by striking out the second 
sentence.

                    PART III--ACQUISITIONS GENERALLY

SEC. 1091. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON COMPETITION.

    Section 23 of the Office of Federal Procurement Policy Act (41 
U.S.C. 419) is repealed.

                   Subtitle B--Truth in Negotiations

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 1201. STABILIZATION OF DOLLAR THRESHOLD OF APPLICABILITY.

    Section 2306a(a)(1)(A) of title 10, United States Code, is 
amended--
            (1) in clause (i), by striking out ``and before January 1, 
        1996,''; and
            (2) in clause (ii), by striking out ``or after December 31, 
        1995,''.

SEC. 1202. EXCEPTIONS TO COST OR PRICING DATA REQUIREMENTS.

    Section 2306a(b) of title 10, United States Code, is amended to 
read as follows:
    ``(b) Exceptions.--(1) This section need not be applied to a 
contract or subcontract--
            ``(A) for which the price agreed upon is based on--
                    ``(i) adequate price competition;
                    ``(ii) established catalog or market prices of 
                commercial items or of services regularly used for 
                other than Government purposes, as the case may be, 
                that are sold in substantial quantities to the general 
                public; or
                    ``(iii) prices set by law or regulation; or
            ``(B) in an exceptional case when the head of the agency 
        determines that the requirements of this section may be waived 
        and states in writing the reasons for such determination.
    ``(2) This section need not be applied to a modification of a 
contract or subcontract if--
            ``(A) the contract or subcontract being modified is one to 
        which this section need not be applied by reason of clause (i) 
        or (ii) of paragraph (1)(A); and
            ``(B) the modification would not change the contract or 
        subcontract, as the case may be, from a contract or subcontract 
        for the acquisition of a commercial item to a contract or 
        subcontract for the acquisition of a noncommercial item.''.

SEC. 1203. LIMITATION ON AUTHORITY TO REQUIRE A SUBMISSION NOT 
              OTHERWISE REQUIRED.

    Section 2306a(c) of title 10, United States Code, is amended by 
striking out ``by subsection (a), such data may nevertheless be 
required to be submitted by the head of the agency if'' and inserting 
in lieu thereof ``by reason of subsection (b), submission of such data 
may not be required unless''.

SEC. 1204. ADDITIONAL SPECIAL RULES FOR COMMERCIAL ITEMS.

    Section 2306a of title 10, United States Code, is amended--
            (1) by redesignating subsections (d), (e), (f), and (g) as 
        subsections (e), (f), (g), and (i), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Additional Exception Provisions Regarding Commercial Items.--
(1) To the maximum extent practicable, the head of an agency shall--
            ``(A) conduct procurements of commercial items on a 
        competitive basis; and
            ``(B) exercise the authority provided in subsection 
        (b)(1)(A) to exempt the contracts and subcontracts under such 
        procurements from the requirements of subsection (a).
    ``(2) In any case in which it is not practicable to conduct a 
procurement of a commercial item on a competitive basis and the 
procurement is not covered by an exception in subsection (b), the 
contracting officer may nonetheless exempt a contract or subcontract 
under the procurement from the requirements of subsection (a) if--
            ``(A) in accordance with regulations implementing this 
        paragraph, the offeror, contractor, or subcontractor, as the 
        case may be, provides the contracting officer with information 
        on the price charged by such offeror, contractor, or 
        subcontractor for the same or similar products in the 
        commercial marketplace; and
            ``(B) the contracting officer determines in writing that 
        the information provided is adequate for evaluating the 
        reasonableness of the price of the contract or subcontract.
    ``(3)(A) The Government shall be entitled to a reduction in price 
and the return of any overpayment, with interest, if an offeror, 
contractor, or subcontractor provides materially inaccurate or 
misleading information to the contracting officer pursuant to paragraph 
(2).
    ``(B) Nothing in subparagraph (A) is intended to preclude the head 
of an agency from negotiating any contract clause that provides 
additional price adjustment authority for the protection of the 
Government's interest in specific types of contracts, including 
multiple ordering agreements.
    ``(4)(A) The head of an agency shall have the right to examine all 
information provided by an offeror, contractor, or subcontractor 
pursuant to paragraph (2) and all books and records of such offeror, 
contractor, or subcontractor that directly relate to such information 
in order to determine whether such information is materially inaccurate 
or misleading.
    ``(B) The right under subparagraph (A) shall expire 3 years after 
the date of award of the contract, or 3 years after the date of the 
modification of the contract, with respect to which the information was 
provided.''.

SEC. 1205. RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR RECORDS.

    Section 2306a of title 10, United States Code, is amended by 
striking out subsection (g), as redesignated by section 1204(1), and 
inserting in lieu thereof the following:
    ``(g) Right of United States 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 section, the head 
of an agency shall have the rights provided by section 2313 of this 
title.''.

SEC. 1206. REQUIRED REGULATIONS.

    Section 2306a of title 10, United States Code, as amended by 
sections 1204 and 1205, is further amended by inserting after 
subsection (g) the following new subsection:
    ``(h) Required Regulations.--(1) The Secretary of Defense shall 
prescribe regulations identifying the type of procurements for which 
contracting officers should consider requiring the submission of 
certified cost or pricing data under this section.
    ``(2) The Secretary also shall prescribe regulations concerning the 
types of information that offerors must submit for a contracting 
officer to consider in determining whether the price of a procurement 
to the Government is fair and reasonable when certified cost or pricing 
data are not required to be submitted under this section because the 
price of the procurement to the United States is not expected to exceed 
$500,000. Such information, at a minimum, shall include appropriate 
information on the prices at which such offeror has previously sold the 
same or similar products.''.

SEC. 1207. CONSISTENCY OF TIME REFERENCES.

    Section 2306a of title 10, United States Code, as amended by 
section 1204, is further amended--
            (1) in subparagraphs (A)(ii) and (B)(ii) of subsection 
        (e)(4), by inserting ``or, if applicable consistent with 
        paragraph (1)(B), another date agreed upon between the 
        parties'' after ``(or price of the modification)''; and
            (2) in subsection (i), by inserting ``or, if applicable 
        consistent with subsection (d)(1)(B), another date agreed upon 
        between the parties'' after ``(or the price of a contract 
        modification)''.

SEC. 1208. REPEAL OF SUPERSEDED PROVISION.

    Subsection (c) of section 803 of Public Law 101-510 (10 U.S.C. 
2306a note) is repealed.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 1251. REVISION OF CIVILIAN AGENCY PROVISIONS TO ENSURE UNIFORM 
              TREATMENT OF COST OR PRICING DATA.

    (a) In General.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is 
amended--
            (1) in section 304, by striking out subsection (d); and
            (2) by inserting after section 304 the following new 
        section:

             ``cost or pricing data: truth in negotiations

    ``Sec. 304A. (a) Required Cost or Pricing Data and Certification.--
(1) An agency head shall require offerors, contractors, and 
subcontractors to make cost or pricing data available as follows:
            ``(A) An offeror for a prime contract under this title 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--
                    ``(i) in the case of a prime contract entered into 
                after the date of the enactment of the Federal 
                Acquisition Streamlining Act of 1993, the price of the 
                contract to the United States is expected to exceed 
                $500,000; and
                    ``(ii) in the case of a prime contract entered into 
                on or before the date of the enactment of the Federal 
                Acquisition Streamlining Act of 1993, the price of the 
                contract to the United States is expected to exceed 
                $100,000.
            ``(B) The contractor for a prime contract under this 
        chapter shall be required to submit cost or pricing data before 
        the pricing of a change or modification to the contract if--
                    ``(i) in the case of a change or modification made 
                to a prime contract referred to in subparagraph (A)(i), 
                the price adjustment is expected to exceed $500,000;
                    ``(ii) in the case of a change or modification made 
                to a prime contract that was entered into on or before 
                the date of the enactment of the Federal Acquisition 
                Streamlining Act of 1993, and that has been modified 
                pursuant to paragraph (6), the price adjustment is 
                expected to exceed $500,000; and
                    ``(iii) in the case of a change or modification not 
                covered by clause (i) or (ii), the price adjustment is 
                expected to exceed $100,000.
            ``(C) An offeror for a subcontract (at any tier) of a 
        contract under this title 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 
        section and--
                    ``(i) in the case of a subcontract under a prime 
                contract referred to in subparagraph (A)(i), the price 
                of the subcontract is expected to exceed $500,000;
                    ``(ii) in the case of a subcontract entered into 
                under a prime contract that was entered into on or 
                before the date of the enactment of the Federal 
                Acquisition Streamlining Act of 1993, and that has been 
                modified pursuant to paragraph (6), the price of the 
                subcontract is expected to exceed $500,000; and
                    ``(iii) in the case of a subcontract not covered by 
                clause (i) or (ii), the price of the subcontract is 
                expected to exceed $100,000.
            ``(D) The subcontractor for a subcontract covered by 
        subparagraph (C) shall be required to submit cost or pricing 
        data before the pricing of a change or modification to the 
        subcontract if--
                    ``(i) in the case of a change or modification to a 
                subcontract referred to in subparagraph (C)(i) or 
                (C)(ii), the price adjustment is expected to exceed 
                $500,000; and
                    ``(ii) in the case of a change or modification to a 
                subcontract referred to in subparagraph (C)(iii), the 
                price adjustment is expected to exceed $100,000.
    ``(2) A person required, as an offeror, contractor, or 
subcontractor, to submit cost or pricing data under paragraph (1) (or 
required by the agency head concerned to submit such data under 
subsection (c)) 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.
    ``(3) Cost or pricing data required to be submitted under paragraph 
(1) (or under subsection (c)), and a certification required to be 
submitted under paragraph (2), shall be submitted--
            ``(A) 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 to a designated representative of the 
        contracting officer); or
            ``(B) in the case of a submission by a subcontractor (or an 
        offeror for a subcontract), to the prime contractor.
    ``(4) Except as provided under subsection (b), this section applies 
to contracts entered into by an agency head on behalf of a foreign 
government.
    ``(5) For purposes of paragraph (1)(C), a contractor or 
subcontractor granted a waiver under subsection (b)(2) shall be 
considered as having been required to make available cost or pricing 
data under this section.
    ``(6)(A) Upon the request of a contractor that was required to 
submit cost or pricing data under paragraph (1) in connection with a 
prime contract entered into on or before the date of the enactment of 
the Federal Acquisition Streamlining Act of 1993, the agency head that 
entered into such contract shall modify the contract to reflect 
subparagraphs (B)(ii) and (C)(ii) of paragraph (1). All such 
modifications shall be made without requiring consideration.
    ``(B) An agency head is not required to modify a contract under 
subparagraph (A) if that agency head determines that the submission of 
cost or pricing data with respect to that contract should be required 
under subsection (c).
    ``(b) Exceptions.--(1) This section need not be applied to a 
contract or subcontract--
            ``(A) for which the price agreed upon is based on--
                    ``(i) adequate price competition;
                    ``(ii) established catalog or market prices of 
                commercial items or of services regularly used for 
                other than Government purposes, as the case may be, 
                that are sold in substantial quantities to the general 
                public; or
                    ``(iii) prices set by law or regulation; or
            ``(B) in an exceptional case when the agency head 
        determines that the requirements of this section may be waived 
        and states in writing the reasons for such determination.
    ``(2) This section need not be applied to a modification of a 
contract or subcontract if--
            ``(A) the contract or subcontract being modified is one to 
        which this section need not be applied by reason of clause (i) 
        or (ii) of paragraph (1)(A); and
            ``(B) the modification would not change the contract or 
        subcontract, as the case may be, from a contract or subcontract 
        for the acquisition of a commercial item to a contract or 
        subcontract for the acquisition of a noncommercial item.
    ``(c) Authority To Require Cost or Pricing Data.--When cost or 
pricing data are not required to be submitted by reason of subsection 
(b), submission of such data may not be required unless the agency head 
determines that such data are necessary for the evaluation by the 
agency of the reasonableness of the price of the contract or 
subcontract. In any case in which the agency head requires such data to 
be submitted under this subsection, the agency head shall document in 
writing the reasons for such requirement.
    ``(d) Additional Exception Provisions Regarding Commercial Items.--
(1) To the maximum extent practicable, an agency head shall--
            ``(A) conduct procurements of commercial items on a 
        competitive basis; and
            ``(B) exercise the authority provided in subsection 
        (b)(1)(A) to exempt the contracts and subcontracts under such 
        procurements from the requirements of subsection (a).
    ``(2) In any case in which it is not practicable to conduct a 
procurement of a commercial item on a competitive basis and the 
procurement is not covered by an exception in subsection (b), the 
contracting officer may nonetheless exempt a contract or subcontract 
under the procurement from the requirements of subsection (a) if--
            ``(A) in accordance with regulations implementing this 
        paragraph, the offeror, contractor, or subcontractor, as the 
        case may be, provides the contracting officer with information 
        on the price charged by such offeror, contractor, or 
        subcontractor for the same or similar products in the 
        commercial marketplace; and
            ``(B) the contracting officer determines in writing that 
        the information provided is adequate for evaluating the 
        reasonableness of the price of the contract or subcontract.
    ``(3)(A) The Government shall be entitled to a reduction in price 
and the return of any overpayment, with interest, if an offeror, 
contractor, or subcontractor provides materially inaccurate or 
misleading information to the contracting officer pursuant to paragraph 
(2).
    ``(B) Nothing in subparagraph (A) is intended to preclude an agency 
head from negotiating any contract clause that provides additional 
price adjustment authority for the protection of the Government's 
interest in specific types of contracts, including multiple ordering 
agreements.
    ``(4)(A) An agency head shall have the right to examine all 
information provided by an offeror, contractor, or subcontractor 
pursuant to paragraph (2) and all books and records of such offeror, 
contractor, or subcontractor that directly relate to such information 
in order to determine whether such information is materially inaccurate 
or misleading.
    ``(B) The right under subparagraph (A) shall expire 3 years after 
the date of award of the contract, or 3 years after the date of the 
modification of the contract, with respect to which the information was 
provided.
    ``(e) Price Reductions for Defective Cost or Pricing Data.--(1)(A) 
A prime contract (or change or modification to a prime contract) under 
which a certificate under subsection (a)(2) is required shall contain a 
provision that the price of the contract to the United States, 
including profit or fee, shall be adjusted to exclude any significant 
amount by which it may be determined by the agency head that such price 
was increased because the contractor (or any subcontractor required to 
make available such a certificate) submitted defective cost or pricing 
data.
    ``(B) For the purposes of this section, defective cost or pricing 
data are cost or pricing data which, as of the date of agreement on the 
price of the contract (or another date agreed upon between the 
parties), were inaccurate, incomplete, or noncurrent. If for purposes 
of the preceding sentence the parties agree upon a date other than the 
date of agreement on the price of the contract, the date agreed upon by 
the parties shall be as close to the date of agreement on the price of 
the contract as is practicable.
    ``(2) In determining for purposes of a contract price adjustment 
under a contract provision required by paragraph (1) whether, and to 
what extent, a contract price was increased because the contractor (or 
a subcontractor) submitted defective cost or pricing data, it shall be 
a defense that the United States did not rely on the defective data 
submitted by the contractor or subcontractor.
    ``(3) It is not a defense to an adjustment of the price of a 
contract under a contract provision required by paragraph (1) that--
            ``(A) 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--
                    ``(i) was the sole source of the property or 
                services procured; or
                    ``(ii) otherwise was in a superior bargaining 
                position with respect to the property or services 
                procured;
            ``(B) the contracting officer should have known that the 
        cost and pricing data in issue were defective even though the 
        contractor or subcontractor took no affirmative action to bring 
        the character of the data to the attention of the contracting 
        officer;
            ``(C) the contract was based on an agreement between the 
        contractor and the United States about the total cost of the 
        contract and there was no agreement about the cost of each item 
        procured under such contract; or
            ``(D) the prime contractor or subcontractor did not submit 
        a certification of cost and pricing data relating to the 
        contract as required under subsection (a)(2).
    ``(4)(A) A contractor shall be allowed to offset an amount against 
the amount of a contract price adjustment under a contract provision 
required by paragraph (1) if--
            ``(i) 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
            ``(ii) 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 paragraph (1)(B), another date agreed upon 
        between the parties, and that the data were not submitted as 
        specified in subsection (a)(3) before such date.
    ``(B) A contractor shall not be allowed to offset an amount 
otherwise authorized to be offset under subparagraph (A) if--
            ``(i) the certification under subsection (a)(2) with 
        respect to the cost or pricing data involved was known to be 
        false when signed; or
            ``(ii) the United States proves that, had the cost or 
        pricing data referred to in subparagraph (A)(ii) been submitted 
        to the United States before the date of agreement on the price 
        of the contract (or price of the modification) or, if 
        applicable under paragraph (1)(B), another date agreed upon 
        between the parties, the submission of such cost or pricing 
        data would not have resulted in an increase in that price in 
        the amount to be offset.
    ``(f) Interest and Penalties for Certain Overpayments.--(1) If the 
United States makes an overpayment to a contractor under a contract 
with an executive agency subject to this section and the overpayment 
was due to the submission by the contractor of defective cost or 
pricing data, the contractor shall be liable to the United States--
            ``(A) for interest on the amount of such overpayment, to be 
        computed--
                    ``(i) 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 such 
                overpayment to the United States; and
                    ``(ii) at the current rate prescribed by the 
                Secretary of the Treasury under section 6621 of the 
                Internal Revenue Code of 1986; and
            ``(B) if the submission of such defective data was a 
        knowing submission, for an additional amount equal to the 
        amount of the overpayment.
    ``(2) Any liability under this subsection of a contractor that 
submits cost or pricing data but refuses to submit the certification 
required by subsection (a)(2) with respect to the cost or pricing data 
shall not be affected by the refusal to submit such certification.
    ``(g) Right of United States 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 section, the head 
of an agency shall have the rights provided by section 304B(a)(2).
    ``(h) Required Regulations.--(1) The head of each executive agency 
shall prescribe regulations identifying the type of procurements for 
which contracting officers of that executive agency should consider 
requiring the submission of certified cost or pricing data under this 
section.
    ``(2) The agency head also shall prescribe regulations concerning 
the types of information that offerors must submit for a contracting 
officer to consider in determining whether the price of a procurement 
to the Government is fair and reasonable when certified cost or pricing 
data are not required to be submitted under this section because the 
price of the procurement to the United States is not expected to exceed 
$500,000. Such information, at a minimum, shall include appropriate 
information on the prices at which such offeror has previously sold the 
same or similar products.
    ``(i) Cost or Pricing Data Defined.--In this section, 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 subsection (e)(1)(B), 
another date agreed upon between the parties, a prudent buyer or seller 
would reasonably expect to affect price negotiations significantly. 
Such terms does not include information that is judgmental, but does 
include the factual information from which a judgment was derived.''.
    (b) Table of Contents.--The table of contents in the first section 
of such Act is amended by inserting after the item relating to section 
2304 the following:

``Sec. 304A. Cost or pricing data: truth in negotiations.''.

SEC. 1252. REPEAL OF OBSOLETE PROVISION.

    (a) Repeal.--Section 303E of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253e) is repealed.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act is amended by striking out the item relating to section 
303E.

                  Subtitle C--Research and Development

SEC. 1301. DELEGATION OF CONTRACTING AUTHORITY.

    Section 2356 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2356. Contracts: delegations
    ``(a) Authority.--The Secretary of a military department may 
delegate any authority under section 1584, 2353, or 2354 of this title 
to--
            ``(1) the Under Secretary of his department;
            ``(2) an Assistant Secretary of his department;
            ``(3) a Deputy Assistant Secretary of his department; or
            ``(4) except as provided in subsection (b), the chief, and 
        one assistant to the chief, of any technical service, bureau, 
        or office.
    ``(b) Limitation.--The authority of the Secretary of a military 
department under section 2353(b)(3) of this title may not be delegated 
to a person described in subsection (a)(4).''.

SEC. 1302. RESEARCH PROJECTS.

    (a) Authority To Conduct Basic, Advanced, and Applied Research.--
Section 2358 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2358. Research projects
    ``(a) Authority.--The Secretary of Defense or the Secretary of a 
military department may engage in basic, advanced, and applied research 
and development projects that--
            ``(1) are necessary to the responsibilities of such 
        Secretary's department in the field of basic, advanced, and 
        applied research and development; and
            ``(2) either--
                    ``(A) relate to weapons systems and other military 
                needs; or
                    ``(B) are of potential interest to such department.
    ``(b) Authorized Means.--The Secretary of Defense or the Secretary 
of a military department may perform research and development 
projects--
            ``(1) by contract, cooperative agreement, or other 
        transaction with, or by grant to, educational or research 
        institutions, private businesses, or other agencies of the 
        United States;
            ``(2) by using employees and consultants of the Department 
        of Defense; or
            ``(3) through one or more of the military departments.
    ``(c) Requirement of Potential Military Interest.--Funds 
appropriated to the Department of Defense or to a military department 
may not be used to finance any research project or study unless the 
project or study is, in the opinion of the Secretary of Defense or the 
Secretary of that military department, respectively, of potential 
interest to the Department of Defense or to such military department, 
respectively.''.
    (b) Authority Related to Advanced Research Projects.--
            (1) Repeal of redundant authority.--Section 2371 of such 
        title is amended--
                    (A) by striking out subsection (a);
                    (B) by redesignating subsections (b), (c), (d), 
                (e), (f), and (g) as subsections (a), (b), (c), (d), 
                (e), and (f), respectively;
                    (C) in subsection (a), as so redesignated--
                            (i) in paragraph (1), by striking out 
                        ``subsection (a)'' and inserting in lieu 
                        thereof ``section 2358 of this title''; and
                            (ii) in paragraph (2), by striking out 
                        ``subsection (e)'' and inserting in lieu 
                        thereof ``subsection (d)''; and
                    (D) in subsection (e), as redesignated by 
                subparagraph (B)--
                            (i) in paragraph (4), by striking out 
                        ``subsection (b)'' and inserting in lieu 
                        thereof ``subsection (a)''; and
                            (ii) in paragraph (5), by striking out 
                        ``subsection (e)'' and inserting in lieu 
                        thereof ``subsection (d)''.
            (2) Consistency of terminology.--Such section, as amended 
        by paragraph (1), is further amended--
                    (A) in subsection (c)(1), by inserting ``and 
                development'' after ``research'' both places it 
                appears;
                    (B) in subsections (d) and (e)(3), by striking out 
                ``advanced research'' and inserting in lieu thereof 
                ``research and development''; and
                    (C) in subsection (e)(1), by striking out 
                ``advanced research is'' and inserting in lieu thereof 
                ``research and development are''.
    (c) Redundant and Obsolete Authority for the Army.--
            (1) Repeal.--Section 4503 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 431 of such title is amended by striking 
        out the item relating to section 4503.
    (d) Redundant and Obsolete Authority for the Air Force.--
            (1) Repeal.--Section 9503 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 931 of such title is amended by striking 
        out the item relating to section 9503.

SEC. 1303. ELIMINATION OF INFLEXIBLE TERMINOLOGY REGARDING COORDINATION 
              AND COMMUNICATION OF DEFENSE RESEARCH ACTIVITIES.

    Section 2364 of title 10, United States Code, is amended--
            (1) in subsection (b)(5), by striking out ``milestone 0, 
        milestone I, and milestone II decisions'' and inserting in lieu 
        thereof ``acquisition program decisions''; and
            (2) in subsection (c), by striking out paragraphs (2), (3), 
        and (4) and inserting in lieu thereof the following:
            ``(2) The term `acquisition program decisions' has the 
        meaning given such term in regulations prescribed by the 
        Secretary of Defense for the purposes of this section.''.

                    Subtitle D--Procurement Protests

              PART I--PROTESTS TO THE COMPTROLLER GENERAL

SEC. 1401. REVIEW OF PROTESTS AND EFFECT ON CONTRACTS PENDING DECISION.

    (a) Periods for Certain Actions.--Section 3553 of title 31, United 
States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking out ``one working 
                day of'' and inserting in lieu thereof ``one day 
                after''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking out 
                        ``25 working days from'' and inserting in lieu 
                        thereof ``25 days after''; and
                            (ii) in subparagraph (C), by striking out 
                        ``10 working days from'' and inserting in lieu 
                        thereof ``25 days after''; and
            (2) in subsection (c)(3), by striking out ``thereafter'' 
        and inserting in lieu thereof ``after the making of such 
        finding''.
    (b) Reference to Head of Contracting Activity.--Subsections (c)(2) 
and (e) of such section are amended by striking out ``head of the 
procuring activity'' and inserting in lieu thereof ``head of the 
contracting activity''.
    (c) Suspension of Performance.--Subsection (d) of such section is 
amended to read as follows:
    ``(d)(1) A contractor awarded a Federal agency contract may, during 
the period described in paragraph (5), begin performance of the 
contract and engage in any related activities that result in 
obligations being incurred by the United States under the contract upon 
receipt from the contracting officer responsible for the award of the 
contract of an authorization to proceed with performance of the 
contract.
    ``(2) The contracting officer may withhold an authorization to 
proceed with performance of the contract during the period described in 
paragraph (5) if the contracting officer determines in writing that--
            ``(A) a protest is likely to be filed; and
            ``(B) the immediate performance of the contract is not in 
        the best interests of the United States.
    ``(3) Unless the contracting officer makes the determinations 
described in paragraph (2), performance of the contract may be 
authorized in the written notice of award transmitted to the contractor 
pursuant to paragraph (3) or (4)(B) of section 2305(b) of title 10 or 
subsection (c) or (d)(2) of section 303B of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b), as the case may 
be.
    ``(4)(A) If the Federal agency awarding the contract receives 
notice of a protest in accordance with this section during the period 
described in paragraph (5)--
            ``(i) the contracting officer may not authorize performance 
        of the contract to begin while the protest is pending; or
            ``(ii) if contract performance was authorized in accordance 
        with paragraph (2) before receipt of the notice, the 
        contracting officer shall immediately direct the contractor to 
        cease performance under the contract and to suspend any related 
        activities that may result in additional obligations being 
        incurred by the United States under that contract.
    ``(B) Performance and related activities suspended pursuant to 
subparagraph (A)(ii) by reason of a protest may not be resumed while 
the protest is pending.
    ``(C) The head of the contracting activity may authorize the 
performance of the contract (notwithstanding a protest of which the 
Federal agency has notice under this section)--
            ``(i) upon a written finding that--
                    ``(I) performance of the contract is in the best 
                interests of the United States; or
                    ``(II) urgent and compelling circumstances that 
                significantly affect interests of the United States 
                will not permit waiting for the decision of the 
                Comptroller General concerning the protest; and
            ``(ii) after the Comptroller General is notified of that 
        finding.
    ``(5) The period referred to in paragraphs (2) and (4)(A), with 
respect to a contract, is the period beginning on the date of the 
contract award and ending on the later of--
            ``(A) the date that is 10 days after the date of the 
        contract award; or
            ``(B) the date that is 7 days after the debriefing date 
        offered to an unsuccessful offeror for any debriefing that is 
        requested and, when requested, is required.''.

SEC. 1402. DECISIONS ON PROTESTS.

    (a) Periods for Certain Actions.--Section 3554(a) of title 31, 
United States Code, is amended--
            (1) in paragraph (1), by striking out ``90 working days 
        from'' and inserting in lieu thereof ``125 days after'';
            (2) in paragraph (2), by striking out ``45 calendar days 
        from'' and inserting ``65 days after'';
            (3) by redesignating paragraph (3) as paragraph (4); and
            (4) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) An amendment that adds a new ground of protest should be 
resolved, to the maximum extent practicable, within the time limit 
established under paragraph (1) of this subsection for final decision 
of the initial protest. If an amended protest cannot be resolved within 
such time limit, the Comptroller General may resolve the amended 
protest through the express option under paragraph (2) of this 
subsection.''.
    (b) GAO Recommendations on Protests.--
            (1) Implementation of recommendations.--Section 3554 of 
        title 31, United States Code, is amended--
                    (A) in subsection (b), by adding at the end the 
                following new paragraph:
    ``(3) If the Federal agency fails to implement fully the 
recommendations of the Comptroller General under this subsection with 
respect to a solicitation for a contract or an award or proposed award 
of a contract within 60 days after receiving the recommendations, the 
head of the contracting activity responsible for that contract shall 
report such failure to the Comptroller General not later than 5 working 
days after the end of such 60-day period.'';
                    (B) by striking out subsection (c) and inserting in 
                lieu thereof the following:
    ``(c)(1) If the Comptroller General determines that a solicitation 
for a contract or a proposed award or the award of a contract does not 
comply with a statute or regulation, the Comptroller General may 
recommend that the Federal agency conducting the procurement pay to an 
appropriate interested party the costs of--
            ``(A) filing and pursuing the protest, including reasonable 
        attorney's fees and consultant and expert witness fees; and
            ``(B) bid and proposal preparation.
    ``(2) No party may be paid, pursuant to a recommendation made under 
the authority of paragraph (1)--
            ``(A) costs for consultant and expert witness fees that 
        exceed the rates provided under section 504(b)(1)(A) of title 5 
        for expert witnesses; or
            ``(B) costs for attorney's fees that exceed the rates 
        provided for attorneys under section 504(b)(1)(A) of title 5.
    ``(3) If the Comptroller General recommends under paragraph (1) 
that a Federal agency pay costs to an interested party, the Federal 
agency shall--
            ``(A) pay the costs promptly out of funds appropriated by 
        section 1304 of this title for the payment of judgments and 
        reimburse that appropriation account out of available funds or 
        out of additional funds appropriated for such Federal agency to 
        make such reimbursement; or
            ``(B) if the Federal agency does not make such payment, 
        promptly report to the Comptroller General the reasons for the 
        failure to follow the Comptroller General's recommendation.
    ``(4) If the Comptroller General recommends under paragraph (1) 
that a Federal agency pay costs to an interested party, the Federal 
agency and the interested party shall attempt to reach an agreement on 
the amount of the costs to be paid. If the Federal agency and the 
interested party are unable to agree on the amount to be paid, the 
Comptroller General may, upon the request of the interested party, 
recommend to the Federal agency the amount of the costs that the 
Federal agency should pay.''; and
                    (C) by striking out subsection (e) and inserting in 
                lieu thereof the following:
    ``(e)(1) The Comptroller General shall report promptly to the 
Committee on Governmental Affairs and the Committee on Appropriations 
of the Senate and to the Committee on Government Operations and the 
Committee on Appropriations of the House of Representatives any case in 
which a Federal agency fails to implement fully a recommendation of the 
Comptroller General under subsection (b) or (c). The report shall 
include--
            ``(A) a comprehensive review of the pertinent procurement, 
        including the circumstances of the failure of the Federal 
        agency to implement a recommendation of the Comptroller 
        General; and
            ``(B) a recommendation regarding whether, in order to 
        correct an inequity or to preserve the integrity of the 
        procurement process, the Congress should consider--
                    ``(i) private relief legislation;
                    ``(ii) legislative rescission or cancellation of 
                funds;
                    ``(iii) further investigation by the Congress; or
                    ``(iv) other action.
    ``(2) Not later than January 31 of each year, the Comptroller 
General shall transmit to the Congress a report containing a summary of 
each instance in which a Federal agency did not fully implement a 
recommendation of the Comptroller General under subsection (b) or (c) 
during the preceding year. The report shall also describe each instance 
in which a final decision in a protest was not rendered within 125 days 
after the date the protest is submitted to the Comptroller General.''.
            (2) Requirement for payment in accordance with prior gao 
        determinations.--Amounts to which the Comptroller General 
        declared an interested party to be entitled under section 3554 
        of title 31, United States Code, as in effect immediately 
        before the enactment of this Act, shall, if not paid or 
        otherwise satisfied by the Federal agency concerned before the 
        date of the enactment of this Act, be paid promptly from the 
        appropriation made by section 1304 of such title for the 
        payment of judgments. The Federal agency shall reimburse that 
        appropriation account out of available funds or out of 
        additional funds appropriated for such Federal agency to make 
        such reimbursement. If the Federal agency is unable to make the 
        reimbursement out of available funds, the head of such agency 
        shall immediately take such action as may be necessary to 
        transmit to Congress a request for an appropriation of 
        additional funds to make such reimbursement.
    (c) Reference to Head of Contracting Activity.--Subsections (b)(2) 
and (d) of section 3554 of title 31, United States Code, are amended by 
striking out ``head of the procuring activity'' and inserting in lieu 
thereof ``head of the contracting activity''.

SEC. 1403. REGULATIONS.

    (a) Computation of Periods.--Section 3555 of title 31, United 
States Code, is amended--
            (1) by redesignating subsection (b) as subsection (d); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) The procedures shall provide that, in the computation of any 
period described in this subchapter--
            ``(1) the day of the act, event, or default from which the 
        designated period of time begins to run not be included; and
            ``(2) the last day after such act, event, or default be 
        included, unless--
                    ``(A) such last day is a Saturday, a Sunday, or a 
                legal holiday; or
                    ``(B) in the case of a filing of a paper at the 
                General Accounting Office or a Federal agency, such 
                last day is a day on which weather or other conditions 
                make the General Accounting Office or Federal agency 
                inaccessible, in which event the next day that is not a 
                Saturday, Sunday, or legal holiday shall be 
                included.''.
    (b) Electronic Filings and Disseminations.--Such section, as 
amended by subsection (a), is further amended by inserting after 
subsection (b) the following new subsection:
    ``(c) The Comptroller General may prescribe procedures for the 
electronic filing and dissemination of documents and information 
required under this subchapter. In prescribing such procedures, the 
Comptroller General shall consider the ability of all parties to 
achieve electronic access to such documents and records.''.
    (c) Repeal of Obsolete Deadline.--Subsection (a) of such section is 
amended by striking out ``Not later than January 15, 1985, the'' and 
inserting in lieu thereof ``The''.

                PART II--PROTESTS IN THE FEDERAL COURTS

SEC. 1421. NONEXCLUSIVITY OF REMEDIES.

    Section 3556 of title 31, United States Code, is amended by 
striking out ``a district court of the United States or the United 
States Claims Court'' in the first sentence and inserting in lieu 
thereof ``the United States Court of Federal Claims''.

SEC. 1422. JURISDICTION OF THE UNITED STATES COURT OF FEDERAL CLAIMS.

    (a) Claims Against the United States and Bid Protests.--Section 
1491 of title 28, United States Code, is amended--
            (1) by redesignating subsection (b) as subsection (d);
            (2) in subsection (a)--
                    (A) by striking out ``(a)(1)'' and inserting in 
                lieu thereof ``(a) Claims Against the United States.--
                '';
                    (B) in paragraph (2), by striking out ``(2) To'' 
                and inserting in lieu thereof ``(b) Remedy and 
                Relief.--To''; and
                    (C) by striking out paragraph (3); and
            (3) by inserting after subsection (b), as designated by 
        paragraph (2)(B), the following new subsection (c):
    ``(c) Bid Protests.--(1) The United States Court of Federal Claims 
has exclusive jurisdiction to render judgment on an action by an 
interested party objecting to a solicitation by a Federal agency for 
bids or proposals for a proposed contract or to a proposed award or the 
award of a contract. The court has jurisdiction to entertain such an 
action without regard to whether suit is instituted before or after the 
contract is awarded.
    ``(2) To afford relief in such an action, the court may award any 
relief that the court considers proper, including declaratory and 
injunctive relief.
    ``(3) In exercising jurisdiction under this subsection, the court 
shall give due regard to the interests of national defense and national 
security and the need for expeditious resolution of the action.
    ``(4) The district courts of the United States do not have 
jurisdiction of any action referred to in paragraph (1).''.
    (b) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended by inserting ``bid protests;'' after ``generally;''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 91 of title 28, United States Code, is 
        amended by striking out the item relating to section 1491 and 
        inserting in lieu thereof the following:

``1491. Claims against United States generally; bid protests; actions 
                            involving Tennessee Valley Authority.''.

    PART III--PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING

SEC. 1431. REVOCATION OF DELEGATIONS OF PROCUREMENT AUTHORITY.

    Section 111(b)(3) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(b)(3)) is amended by inserting 
after the third sentence the following: ``The Administrator may revoke 
a delegation of authority with respect to a particular contract before 
or after award of the contract, except that the Administrator may 
revoke a delegation after the contract is awarded only when there is a 
finding of a violation of law or regulation in connection with the 
contract award.''.

SEC. 1432. AUTHORITY OF THE GENERAL SERVICES ADMINISTRATION BOARD OF 
              CONTRACT APPEALS.

    The first sentence of section 111(f)(1) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759(f)(1)) is amended to 
read as follows: ``Upon request of an interested party in connection 
with any procurement that is subject to this section (including any 
such procurement that is subject to delegation of procurement 
authority), the board of contract appeals of the General Services 
Administration (hereafter in this subsection referred to as the 
`board') shall review, as provided in this subsection, any decision by 
a Federal agency that is alleged to violate a statute, a regulation, or 
the conditions of a delegation of procurement authority.''.

SEC. 1433. PERIODS FOR CERTAIN ACTIONS.

    (a) Suspension of Procurement Authority.--Section 111(f) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
759(f)) is amended in paragraph (3) by striking out subparagraph (A) 
and inserting in lieu thereof the following:
    ``(A)(i) If, with respect to an award of a contract, the board 
receives notice of a protest under this subsection within the period 
described in clause (ii), the board shall, at the request of an 
interested party, hold a hearing to determine whether the board should 
suspend the procurement authority of the Administrator or the 
Administrator's delegation of procurement authority for the protested 
procurement on an interim basis until the board can decide the protest.
    ``(ii) The period referred to in clause (i) is the period beginning 
on the date on which the contract is awarded and ending at the end of 
the later of--
            ``(I) the tenth day after the date of contract award; or
            ``(II) the seventh day after the debriefing date offered to 
        an unsuccessful offeror for any debriefing that is requested 
        and, when requested, is required.
    ``(iii) The board shall hold the requested hearing within 7 days 
after the date of the filing of the protest or, in the case of a 
request for debriefing under the provisions of section 2305(b)(5) of 
title 10, United States Code, or section 303B(e) of this Act, within 7 
days after the later of the date of the filing of the protest or the 
date of the debriefing.''.
    (b) Final Decision.--Paragraph (4)(B) of such section 111(f) is 
amended--
            (1) by striking out ``45 working days'' and inserting in 
        lieu thereof ``65 days''; and
            (2) by adding at the end the following: ``An amendment 
        which adds a new ground of protest should be resolved, to the 
        maximum extent practicable, within the time limits established 
        for resolution of the initial protest.''.

SEC. 1434. DISMISSALS OF PROTESTS.

    Section 111(f)(4) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(4)) is amended by striking out 
subparagraph (C) and inserting in lieu thereof the following:
    ``(C) The board may dismiss a protest that the board determines--
            ``(i) is frivolous;
            ``(ii) has been brought in bad faith; or
            ``(iii) does not state on its face a valid basis for 
        protest.''.

SEC. 1435. AWARD OF COSTS.

    Section 111(f)(5) is amended by striking out subparagraph (C) and 
inserting in lieu thereof the following:
    ``(C) Whenever the board makes such a determination, it may, in 
accordance with section 1304 of title 31, United States Code, further 
declare an appropriate prevailing party to be entitled to the cost of 
filing and pursuing the protest (including reasonable attorney's fees 
and consultant and expert witness fees), and bid and proposal 
preparation. However, no party may be declared entitled to costs for 
consultant and expert witness fees that exceed the rates provided under 
section 504(b)(1)(A) of title 5, United States Code, for expert 
witnesses or to costs for attorney's fees that exceed the rates 
provided for attorneys under section 504(b)(1)(A) of title 5, United 
States Code.''.

SEC. 1436. DISMISSAL AGREEMENTS.

    Section 111(f)(5) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(5)) is amended by adding at the 
end the following new subparagraphs:
    ``(D) Any agreement that provides for the dismissal of a protest 
and involves a direct or indirect expenditure of appropriated funds 
shall be submitted to the board and shall be made a part of the public 
record (subject to any protective order considered appropriate by the 
board) before dismissal of the protest. If a Federal agency is a party 
to a settlement agreement, the submission of the agreement submitted to 
the board shall include a memorandum, signed by the contracting officer 
concerned, that describes in detail the procurement, the grounds for 
protest, the Federal Government's position regarding the grounds for 
protest, the terms of the settlement, and the agency's position 
regarding the propriety of the award or proposed award of the contract 
at issue in the protest.
    ``(E) Payment of amounts due from an agency under subparagraph (C) 
or under the terms of a settlement agreement under subparagraph (D) 
shall be made from the appropriation made by section 1304 of title 31, 
United States Code, for the payment of judgments. The Federal agency 
concerned shall reimburse that appropriation account out of funds 
available for the procurement.''.

SEC. 1437. JURISDICTION OF DISTRICT COURTS.

    Section 111(f)(6)(C) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(6)(C)) is amended by striking 
out ``a district court of the United States or the United States Claims 
Court'' in the third sentence and inserting in lieu thereof ``the 
United States Court of Federal Claims''.

SEC. 1438. MATTERS TO BE COVERED IN REGULATIONS.

    Section 111(f) of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759(f)) is amended by striking out paragraph (8) 
and inserting in lieu thereof the following:
    ``(7)(A) The board shall adopt and issue such rules and procedures 
as may be necessary to the expeditious disposition of protests filed 
under the authority of this subsection.
    ``(B) The procedures shall provide that, in the computation of any 
period described in this subsection--
            ``(i) the day of the act, event, or default from which the 
        designated period of time begins to run not be included; and
            ``(ii) the last day after such act, event, or default be 
        included, unless--
                    ``(I) such last day is a Saturday, a Sunday, or a 
                legal holiday; or
                    ``(II) in the case of a filing of a paper at the 
                board, such last day is a day on which weather or other 
                conditions make the board or Federal agency 
                inaccessible, in which event the next day that is not a 
                Saturday, Sunday, or legal holiday shall be included.
    ``(C) The procedures may provide for electronic filing and 
dissemination of documents and information required under this 
subsection and in so providing shall consider the ability of all 
parties to achieve electronic access to such documents and records.
    ``(D) The procedures shall provide that if the board expressly 
finds that a protest or a portion of a protest is frivolous or has not 
been brought or pursued in good faith, or that any person has willfully 
abused the board's process during the course of a protest, the board 
may impose appropriate sanctions. Such sanctions may include the 
dismissal of the protest and an award to any other party of costs 
(including reasonable attorneys' fees not to exceed the rates provided 
for pursuant to paragraph (5)(C)) incurred as a result of such protest 
or conduct.''.

SEC. 1439. DEFINITIONS.

    (a) Protest.--Section 111(f)(9)(A) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759(f)(9)(A)) is amended 
to read as follows:
            ``(A) the term `protest' means a written objection by an 
        interested party--
                    ``(i) to a solicitation or other request by a 
                Federal agency for offers for a contract for the 
                procurement of property or services;
                    ``(ii) to the cancellation of such a solicitation 
                or other request;
                    ``(iii) to an award or proposed award of such a 
                contract; or
                    ``(iv) to a termination or cancellation of an award 
                of such a contract, if that termination or cancellation 
                is alleged to be based in whole or in part on 
                improprieties concerning the award of the contract;''.
    (b) Prevailing Party.--Section 111(f)(9) of such Act is amended by 
adding at the end the following new subparagraph:
            ``(C) the term `prevailing party', with respect to a 
        determination of the board under paragraph (5)(B) that a 
        challenged action of a Federal agency violates a statute or 
        regulation or the conditions of a delegation of procurement 
        authority issued pursuant to this section, means a party that 
        demonstrated such violation.''.

SEC. 1440. OVERSIGHT OF ACQUISITION OF AUTOMATIC DATA PROCESSING 
              EQUIPMENT BY FEDERAL AGENCIES.

    Section 111 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 759) is amended by adding at the end the following 
new subsection:
    ``(h)(1) The Administrator shall collect and compile data regarding 
the procurement of automatic data processing equipment under this 
section. The data collected and compiled shall include, at a minimum, 
with regard to each procurement the following:
            ``(A) The procuring agency.
            ``(B) The contractor.
            ``(C) The automatic data processing equipment and services 
        procured.
            ``(D) The manufacturer of the equipment procured.
            ``(E) The amount of the contract, to the extent that the 
        amount is not proprietary information.
            ``(F) The type of contract used.
            ``(G) The extent of competition for award.
            ``(H) Compatibility restrictions.
            ``(I) Significant modifications of the contract.
            ``(J) Contract price, to the extent that the price is not 
        proprietary information.
    ``(2) The head of each Federal agency shall report to the 
Administrator in accordance with regulations issued by the 
Administrator all information that the Administrator determines 
necessary in order to satisfy the requirements in paragraph (1).
    ``(3) The Administrator shall--
            ``(A) carry out a systematic, periodic review of 
        information received under this subsection;
            ``(B) use such information, as appropriate, to determine 
        the compliance of Federal agencies with the requirements of 
        this section; and
            ``(C) have the authority to suspend the delegation to a 
        Federal agency of authority to lease or purchase automatic data 
        processing equipment upon any failure by the head of the 
        Federal agency to report to the Administrator in accordance 
        with paragraph (2).''.

               Subtitle E--Definitions and Other Matters

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 1501. DEFINITIONS.

    Section 2302 of title 10, United States Code, is amended--
            (1) by striking out paragraphs (3), (4), (5), and (7);
            (2) by redesignating paragraph (6) as paragraph (5); and
            (3) by inserting after paragraph (2) the following:
            ``(3) The terms `commercial item', `full and open 
        competition', `major system', `nondevelopmental item', 
        `procurement', `procurement system', `responsible source', 
        `standards', and `technical data', have the meanings given such 
        terms in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            ``(4) The term `simplified acquisition threshold' has the 
        meaning given that term in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403), except that, in the 
        case of any contract to be awarded and performed, or purchase 
        to be made, outside the United States in support of a 
        contingency operation, the term means an amount equal to two 
        times the amount specified for that term in section 4 of such 
        Act.''.

SEC. 1502. DELEGATION OF PROCUREMENT FUNCTIONS.

    (a) Consolidation of Delegation Authority.--Section 2311 of title 
10, United States Code, is amended to read as follows:
``Sec. 2311. Delegation
    ``(a) In General.--Except to the extent expressly prohibited by 
another provision of law, the head of an agency may delegate, subject 
to his direction, to any other officer or official of that agency, any 
power under this chapter.
    ``(b) Procurements For or With Other Agencies.--Subject to 
subsection (a), to facilitate the procurement of property and services 
covered by this chapter by each agency named in section 2303 of this 
title for any other agency, and to facilitate joint procurement by 
those agencies--
            ``(1) the head of an agency may, within his agency, 
        delegate functions and assign responsibilities relating to 
        procurement;
            ``(2) the heads of two or more agencies may by agreement 
        delegate procurement functions and assign procurement 
        responsibilities from one agency to another of those agencies 
        or to an officer or civilian employee of another of those 
        agencies; and
            ``(3) the heads of two or more agencies may create joint or 
        combined offices to exercise procurement functions and 
        responsibilities.
    ``(c) Approval of Terminations and Reductions of Joint Acquisition 
Programs.--(1) The Secretary of Defense shall prescribe regulations 
that prohibit each military department participating in a joint 
acquisition program approved by the Under Secretary of Defense for 
Acquisition from terminating or substantially reducing its 
participation in such program without the approval of the Under 
Secretary.
    ``(2) The regulations shall include the following provisions:
            ``(A) A requirement that, before any such termination or 
        substantial reduction in participation is approved, the 
        proposed termination or reduction be reviewed by the Joint 
        Requirements Oversight Council of the Department of Defense.
            ``(B) A provision that authorizes the Under Secretary of 
        Defense for Acquisition to require a military department 
        approved for termination or substantial reduction in 
        participation in a joint acquisition program to continue to 
        provide some or all of the funding necessary for the 
        acquisition program to be continued in an efficient manner.''.
    (b) Conforming Repeal.--(1) Section 2308 of title 10, United States 
Code, is repealed.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking out the item related to section 2308.

SEC. 1503. DETERMINATIONS AND DECISIONS.

    Section 2310 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2310. Determinations and decisions
    ``(a) Individual or Class Determinations and Decisions 
Authorized.--Determinations and decisions required to be made under 
this chapter by the head of an agency may be made for an individual 
purchase or contract or, except to the extent expressly prohibited by 
another provision of law, for a class of purchases or contracts. Such 
determinations and decisions are final.
    ``(b) Written Findings Required.--(1) Each determination or 
decision under section 2306(g)(1), 2307(c), or 2313(c) of this title 
shall be based on a written finding by the person making the 
determination or decision. The finding shall set out facts and 
circumstances that support the determination or decision.
    ``(2) Each finding referred to in paragraph (1) shall be final. The 
head of the agency making such finding shall maintain a copy of the 
finding for not less 6 years after the date of the determination or 
decision.''.

SEC. 1504. UNDEFINITIZED CONTRACTUAL ACTIONS: RESTRICTIONS.

    (a) Clarification of Limitation.--Subsection (b) of section 2326 of 
title 10, United States Code, is amended--
            (1) in the subsection caption, by striking out ``and 
        Expenditure'';
            (2) in paragraph (1)(B), by striking out ``or expended'';
            (3) in paragraph (2), by striking out ``expend'' and 
        inserting in lieu thereof ``obligate''; and
            (4) in paragraph (3)--
                    (A) by striking out ``expended'' and inserting in 
                lieu thereof ``obligated''; and
                    (B) by striking out ``expend'' and inserting in 
                lieu thereof ``obligate''.
    (b) Waiver Authority.--Such subsection is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4) The head of an agency may waive the provisions of this 
subsection with respect to a contract of that agency if such head of an 
agency determines that the waiver is necessary in order to support a 
contingency operation.''.
    (c) Inapplicability of Restrictions to Contracts Within the 
Simplified Acquisition Threshold.--Section 2326(g)(1)(B) of title 10, 
United States Code, is amended by striking out ``small purchase 
threshold'' and inserting in lieu thereof ``simplified acquisition 
threshold''.

SEC. 1505. PRODUCTION SPECIAL TOOLING AND PRODUCTION SPECIAL TEST 
              EQUIPMENT: CONTRACT TERMS AND CONDITIONS.

    (a) Repeal.--Section 2329 of title 10, United States Code, is 
repealed.
    (b) Technical Amendment.--The table of sections at the beginning of 
chapter 137 of such title is amended by striking out the item related 
to section 2329.

SEC. 1506. REGULATIONS FOR BIDS.

    Section 2381(a) of title 10, United States Code, is amended by 
striking out ``(a) The Secretary'' and all that follows through the end 
of paragraph (1) and inserting in lieu thereof the following:
    ``(a) The Secretary of Defense or the Secretary of a military 
department may--
            ``(1) prescribe regulations for the preparation, 
        submission, and opening of bids for contracts; and''.

SEC. 1507. REPEAL OF EXECUTED REQUIREMENT RELATING TO CERTIFICATE OF 
              INDEPENDENT PRICE DETERMINATION IN CERTAIN DEPARTMENT OF 
              DEFENSE CONTRACT SOLICITATIONS.

    Section 821 of Public Law 101-189 (103 Stat. 1503) is repealed.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 1551. DEFINITIONS.

    Section 309(c) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 259(c)) is amended by striking out ``and 
`supplies''' and inserting in lieu thereof ```supplies', `commercial 
item', `nondevelopmental item', and `simplified acquisition 
threshold'''.

SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.) is amended--
            (1) by redesignating sections 309 and 310 as sections 312 
        and 313, respectively; and
            (2) by inserting after section 308 the following new 
        section 309:

                              ``delegation

    ``Sec. 309. (a) In General.--Except to the extent expressly 
prohibited by another provision of law, an agency head may delegate, 
subject to his direction, to any other officer or official of that 
agency, any power under this title.
    ``(b) Procurements For or With Other Agencies.--Subject to 
subsection (a), to facilitate the procurement of property and services 
covered by this title by each executive agency for any other executive 
agency, and to facilitate joint procurement by those executive 
agencies--
            ``(1) an agency head may, within his executive agency, 
        delegate functions and assign responsibilities relating to 
        procurement;
            ``(2) the heads of two or more executive agencies 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 two or more executive agencies may 
        create joint or combined offices to exercise procurement 
        functions and responsibilities.''.

SEC. 1553. DETERMINATIONS AND DECISIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1552, is further 
amended by inserting after section 309 the following new section 310:

                     ``determinations and decisions

    ``Sec. 310. (a) Individual or Class Determinations and Decisions 
Authorized.--Determinations and decisions required to be made under 
this title by an agency head may be made for an individual purchase or 
contract or, except to the extent expressly prohibited by another 
provision of law, for a class of purchases or contracts. Such 
determinations and decisions are final.
    ``(b) Written Findings Required.--(1) Each determination under 
section 305(c) shall be based on a written finding by the person making 
the determination or decision. The finding shall set out facts and 
circumstances that support the determination or decision.
    ``(2) Each finding referred to in paragraph (1) shall be final. The 
agency head making such finding shall maintain a copy of the finding 
for not less 6 years after the date of the determination or 
decision.''.

SEC. 1554. UNDEFINITIZED CONTRACTUAL ACTIONS: RESTRICTIONS.

    Title III of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 251 et seq.), as amended by section 1553, is further 
amended by inserting after section 310 the following new section:

           ``undefinitized contractual actions: restrictions

    ``Sec. 311. (a) In General.--An agency head may not enter into an 
undefinitized contractual action unless the request to the agency head 
for authorization of the contractual action includes a description of 
the anticipated effect on requirements of the executive agency 
concerned if a delay is incurred for purposes of determining 
contractual terms, specifications, and price before performance is 
begun under the contractual action.
    ``(b) Limitations on Obligations of Funds.--(1) A contracting 
officer of an executive agency may not enter into an undefinitized 
contractual action unless the contractual action provides for agreement 
upon contractual terms, specifications, and price by the earlier of--
            ``(A) the end of the 180-day period beginning on the date 
        on which the contractor submits a qualifying proposal (as 
        defined in subsection (f)) to definitize the contractual terms, 
        specifications, and price; or
            ``(B) the date on which the amount of funds obligated under 
        the contractual action is equal to more than 50 percent of the 
        negotiated overall ceiling price for the contractual action.
    ``(2) Except as provided in paragraph (3), the contracting officer 
for an undefinitized contractual action may not obligate with respect 
to such contractual action an amount that is equal to more than 50 
percent of the negotiated overall ceiling price until the contractual 
terms, specifications, and price are definitized for such contractual 
action.
    ``(3) If a contractor submits a qualifying proposal (as defined in 
subsection (f)) to definitize an undefinitized contractual action 
before an amount equal to more than 50 percent of the negotiated 
overall ceiling price is obligated on such action, the contracting 
officer for such action may not obligate with respect to such 
contractual action an amount that is equal to more than 75 percent of 
the negotiated overall ceiling price until the contractual terms, 
specifications, and price are definitized for such contractual action.
    ``(4) This subsection does not apply to an undefinitized 
contractual action for the purchase of initial spares.
    ``(c) Inclusion of Non-Urgent Requirements.--Requirements for spare 
parts and support equipment that are not needed on an urgent basis may 
not be included in an undefinitized contractual action for spare parts 
and support equipment that are needed on an urgent basis unless the 
agency head approves such inclusion as being--
            ``(1) good business practice; and
            ``(2) in the best interests of the United States.
    ``(d) Modification of Scope.--The scope of an undefinitized 
contractual action under which performance has begun may not be 
modified unless the agency head approves such modification as being--
            ``(1) good business practice; and
            ``(2) in the best interests of the United States.
    ``(e) Allowable Profit.--An agency head shall ensure that the 
profit allowed on an undefinitized contractual action for which the 
final price is negotiated after a substantial portion of the 
performance required is completed reflects--
            ``(1) the possible reduced cost risk of the contractor with 
        respect to costs incurred during performance of the contract 
        before the final price is negotiated; and
            ``(2) the reduced cost risk of the contractor with respect 
        to costs incurred during performance of the remaining portion 
        of the contract.
    ``(f) Definitions.--In this section:
            ``(1) The term `undefinitized contractual action' means a 
        new procurement action entered into by an agency head for which 
        the contractual terms, specifications, or price are not agreed 
        upon before performance is begun under the action. Such term 
        does not include contractual actions with respect to the 
        following:
                    ``(A) Purchases in an amount not in excess of the 
                amount of the simplified acquisition threshold.
                    ``(B) Congressionally mandated long-lead 
                procurement contracts.
            ``(2) The term `qualifying proposal' means a proposal that 
        contains sufficient information to enable the agency head 
        concerned to conduct complete and meaningful audits of the 
        information contained in the proposal and of any other 
        information that the agency head is entitled to review in 
        connection with the contract, as determined by the contracting 
        officer.''.

SEC. 1555. REPEAL OF AMENDMENTS TO UNCODIFIED TITLE.

    The following provisions of law are repealed:
            (1) Section 532 of Public Law 101-509 (104 Stat. 1470) and 
        the matter set out in quotes in that section.
            (2) Section 529 of Public Law 102-393 (106 Stat. 1761) and 
        the matter inserted and added by that section.

                   TITLE II--CONTRACT ADMINISTRATION

                      Subtitle A--Contract Payment

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2001. CONTRACT FINANCING.

    (a) Reorganization of Principal Authority Provision.--Section 2307 
of title 10, United States Code, is amended--
            (1) by striking out the section heading and inserting in 
        lieu thereof the following:
``Sec. 2307. Contract financing'';
            (2) by striking out ``(a) The head of an agency'' and 
        inserting in lieu thereof ``(b) Payment Authority.--The head of 
        an agency'';
            (3) by striking out ``(b) Payments'' and inserting in lieu 
        thereof ``(c) Payment Amount.--Payments'';
            (4) by striking out ``(c) Advance payments'' and inserting 
        in lieu thereof ``(d) Security for Advance Payments.--Advance 
        payments'';
            (5) by striking out ``(d)(1) The Secretary of Defense'' and 
        inserting in lieu thereof ``(e) Conditions for Progress 
        Payments.--(1) The Secretary of Defense''; and
            (6) by striking out ``(e)(1) In any case'' and inserting in 
        lieu thereof ``(g) Action in Case of Fraud.--(1) In any case''.
    (b) Financing Policy.--Such section, as amended by subsection (a), 
is further amended by inserting after the section heading the following 
new subsection (a):
    ``(a) Policy.--Payments authorized under this section and made for 
financing purposes should be made periodically and in a timely manner 
to facilitate contract performance while protecting the security 
interests of the Government. Government financing shall be provided 
only to the extent necessary to ensure prompt and efficient performance 
and only after the availability of private financing is considered. A 
contractor's use of funds received as contract financing and the 
contractor's financial condition shall be monitored. If the contractor 
is a small business concern, special attention shall be given to 
meeting the contractor's financial need.''.
    (c) Terminology Correction.--Such section, as amended by subsection 
(a)(2), is further amended in subsection (b)(2) by striking out 
``bid''.
    (d) Effective Date of Lien Related to Advance Payments.--Such 
section, as amended by subsection (a)(4), is further amended in 
subsection (d) by inserting before the period at the end of the third 
sentence the following: ``and is effective immediately upon the first 
advancement of funds without filing, notice, or any other action by the 
United States''.
    (e) Conditions for Progress Payments.--Such section, as amended by 
subsection (a)(5), is further amended in subsection (e)--
            (1) in the first sentence of paragraph (1), by striking out 
        ``work, which'' and all that follows through ``accomplished'' 
        and inserting in lieu thereof ``work accomplished that meets 
        standards established under the contract''; and
            (2) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
    ``(3) This subsection applies to a contract for an amount equal to 
or greater than the simplified acquisition threshold.''.
    (f) Navy Contracts.--Such section, as amended by subsection (a)(5), 
is further amended by inserting after subsection (e) the following new 
subsection (f):
    ``(f) Certain Navy Contracts.--(1) The Secretary of the Navy shall 
provide that the rate for progress payments on any contract awarded by 
the Secretary for repair, maintenance, or overhaul of a naval vessel 
shall be not less than--
            ``(A) 95 percent, in the case of firms considered to be 
        small businesses; and
            ``(B) 90 percent, in the case of all other firms.
    ``(2) The Secretary of the Navy may advance to private salvage 
companies such funds as the Secretary considers necessary to provide 
for the immediate financing of salvage operations. Advances under this 
paragraph shall be made on terms that the Secretary considers adequate 
for the protection of the United States.
    ``(3) The Secretary of the Navy shall ensure that, when partial, 
progress, or other payments are made under a contract for construction 
or conversion of a naval vessel, the United States is secured by a lien 
upon work in progress and on property acquired for performance of the 
contract on account of all payments so made. The lien is paramount to 
all other liens.''.
    (g) Conforming and Clerical Amendments.--
            (1) Cross reference.--Such section, as amended by 
        subsection (a), is further amended in subsections (c) and (d) 
        by striking out ``subsection (a)'' and inserting in lieu 
        thereof ``subsection (b)''.
            (2) Table of contents.--The table of sections at the 
        beginning of chapter 137 of title 10, United States Code, is 
        amended by striking out the item relating to section 2307 and 
        inserting in lieu thereof the following:

``2307. Contract financing.''.
    (h) Repeal of Superseded Provisions.--
            (1) Progress payments under certain navy contracts.--
                    (A) Repeal.--Section 7312 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 633 of such title is amended 
                by striking out the item relating to section 7312.
            (2) Advancement of payments for navy salvage operations.--
                    (A) Repeal.--Section 7364 of such title is 
                repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 637 of such title is amended 
                by striking out the item relating to section 7364.
            (3) Partial payments under navy contracts--
                    (A) Repeal.--Section 7521 of such title is 
                repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 645 of such title is amended 
                by striking out the item relating to section 7521.
            (4) Navy research contracts.--Section 7522 of title 10, 
        United States Code, is amended--
                    (A) by striking out subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b).

SEC. 2002. CONTRACTS: VOUCHERING PROCEDURES.

    (a) Repeal.--Section 2355 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking out the item relating 
to section 2355.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2051. CONTRACT FINANCING.

    (a) Reorganization of Principal Authority Provision.--Section 305 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 255) is amended--
            (1) by striking out the section heading and inserting in 
        lieu thereof the following:

                        ``contract financing'';

            (2) by striking out ``(a) Any executive agency'' and 
        inserting in lieu thereof ``(b) Payment Authority.--Any 
        executive agency'';
            (3) by striking out ``(b) Payments'' and inserting in lieu 
        thereof ``(c) Payment Amount.--Payments''; and
            (4) by striking out ``(c) Advance payments'' and inserting 
        in lieu thereof ``(d) Security for Advance Payments.--Advance 
        payments''.
    (b) Financing Policy.--Such section, as amended by subsection (a), 
is further amended by inserting after the section heading the following 
new subsection (a):
    ``(a) Policy.--Payments authorized under this section and made for 
financing purposes should be made periodically and in a timely manner 
to facilitate contract performance while protecting the security 
interests of the Government. Government financing shall be provided 
only to the extent necessary to ensure prompt and efficient performance 
and only after the availability of private financing is considered. A 
contractor's use of funds received as contract financing and the 
contractor's financial condition shall be monitored. If the contractor 
is a small business concern, special attention shall be given to 
meeting the contractor's financial need.''.
    (c) Terminology Correction.--Such section, as amended by subsection 
(a)(2), is further amended in subsection (b)(2) by striking out 
``bid''.
    (d) Effective Date of Lien Related to Advance Payments.--Such 
section, as amended by subsection (a)(4), is further amended in 
subsection (d) by inserting before the period at the end of the third 
sentence the following: ``and is effective immediately upon the first 
advancement of funds without filing, notice, or any other action by the 
United States''.
    (e) Revision of Civilian Agency Provision To Ensure Uniform 
Requirements for Progress Payments.--
            (1) In general.--Such section, as amended by subsection 
        (a), is further amended by adding at the end the following:
    ``(e) Conditions for Progress Payments.--(1) The agency head shall 
ensure that any payment for work in progress (including materials, 
labor, and other items) under a contract of an executive agency that 
provides for such payments is commensurate with the work accomplished 
that meets standards established under the contract. The contractor 
shall provide such information and evidence as the agency head 
determines necessary to permit the agency head to carry out the 
preceding sentence.
    ``(2) The agency head shall ensure that progress payments referred 
to in paragraph (1) are not made for more than 80 percent of the work 
accomplished under the contract so long as the agency head has not made 
the contractual terms, specifications, and price definite.
    ``(3) This subsection applies to a contract for an amount equal to 
or greater than the simplified acquisition threshold.
    ``(f) Action in Case of Fraud.--(1) 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 agency head reduce or suspend further payments to 
such contractor.
    ``(2) An agency head receiving a recommendation under paragraph (1) 
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. Upon making such a determination, the agency head 
may reduce or suspend further payments to the contractor under such 
contract.
    ``(3) The extent of any reduction or suspension of payments by an 
agency head under paragraph (2) on the basis of fraud shall be 
reasonably commensurate with the anticipated loss to the United States 
resulting from the fraud.
    ``(4) A written justification for each decision of the agency head 
whether to reduce or suspend payments under paragraph (2), and for each 
recommendation received by the agency head in connection with such 
decision, shall be prepared and be retained in the files of the 
executive agency.
    ``(5) Each agency head shall prescribe procedures to ensure that, 
before the agency head decides to reduce or suspend payments in the 
case of a contractor under paragraph (2), the contractor is afforded 
notice of the proposed reduction or suspension and an opportunity to 
submit matters to the head of the agency in response to such proposed 
reduction or suspension.
    ``(6) Not later than 180 days after the date on which an agency 
head reduces or suspends payments to a contractor under paragraph (2), 
the remedy coordination official of the executive agency shall--
            ``(A) review the determination of fraud on which the 
        reduction or suspension is based; and
            ``(B) transmit a recommendation to the agency head whether 
        the suspension or reduction should continue.
    ``(7) Each agency head who receives recommendations made by a 
remedy coordination official of the executive agency to reduce or 
suspend payments under paragraph (2) during a fiscal year shall prepare 
for such year a report that contains the recommendations, the actions 
taken on the recommendations and the reasons for such actions, and an 
assessment of the effects of such actions on the Federal Government. 
Any such report shall be available to any Member of Congress upon 
request.
    ``(8) An agency head may not delegate responsibilities under this 
subsection to any person in a position below level IV of the Executive 
Schedule.
    ``(9) In this subsection, the term `remedy coordination official', 
with respect to an executive agency, means the person 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.''.
            (2) Relationship to prompt payment requirements.--The 
        amendments made by paragraph (1) are not intended to impair or 
        modify procedures required by the provisions of chapter 39 of 
        title 31, United States Code, and the regulations issued 
        pursuant to such provisions of law, that relate to progress 
        payment requests, as such procedures are in effect on the date 
        of the enactment of this Act.
    (f) Conforming and Clerical Amendments.--
            (1) Reference.--Section 305 of the Federal Property and 
        Administrative Services Act of 1949, as amended by subsection 
        (a), is further amended in subsections (c) and (d) by striking 
        out ``subsection (a)'' and inserting in lieu thereof 
        ``subsection (b)''.
            (2) Table of contents.--The table of contents in the first 
        section of such Act is amended by striking out the item 
        relating to section 305 and inserting in lieu thereof the 
        following:

``Sec. 305. Contract financing.''.

                      Subtitle B--Cost Principles

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2101. ALLOWABLE CONTRACT COSTS.

    (a) Comptroller General Evaluation.--Subsection (l) of section 2324 
of title 10, United States Code, is amended to read as follows:
    ``(l)(1) The Comptroller General shall periodically evaluate the 
implementation of this section by the Secretary of Defense. Such 
evaluation shall consider the extent to which--
            ``(A) the implementation is consistent with congressional 
        intent;
            ``(B) the implementation achieves the objective of 
        eliminating unallowable costs charged to covered contracts; and
            ``(C) the implementation (as well as the provisions of this 
        section and the regulations prescribed under this section) 
        could be improved or strengthened.
    ``(2) The Comptroller General shall submit to the Committees on 
Armed Services and the Committees on Appropriations of the Senate and 
House of Representatives a report on such evaluation within 90 days 
after publication by the Secretary of Defense in the Federal Register 
of regulations that make substantive changes in regulations pertaining 
to allowable costs under covered contracts.''.
    (b) Covered Contract Defined.--Subsection (m) of such section is 
amended to read as follows:
    ``(m) In this section, the term `covered contract' means a contract 
for an amount in excess of $500,000 that is entered into by the 
Department of Defense, except that such term does not include a fixed-
price contract without cost incentives.''.

SEC. 2102. CONTRACT PROFIT CONTROLS DURING EMERGENCY PERIODS.

    (a) Repeal.--Section 2382 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by striking out the item relating 
to section 2382.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2151. ALLOWABLE CONTRACT COSTS.

    (a) Revision of Civilian Agency Provision To Ensure Uniform 
Treatment of Contract Costs.--Section 306 of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 256) is amended to read 
as follows:

                           ``allowable costs

    ``Sec. 306. (a) Indirect Cost That Violates a FAR Cost Principle.--
The head of 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 such costs have been accrued and if that proposal 
includes the submission of a cost which is unallowable because the cost 
violates a cost principle in the Federal Acquisition Regulation or an 
executive agency's supplement to the Federal Acquisition Regulation, 
the cost shall be disallowed.
    ``(b) Penalty for Violation of Cost Principle.--(1) If the agency 
head 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 agency head 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 regulations issued 
        by the agency head) to compensate the United States for the use 
        of any funds which a contractor has been paid in excess of the 
        amount to which the contractor was entitled.
    ``(2) If the agency head determines that a proposal for settlement 
of indirect costs submitted by a contractor includes a cost determined 
to be unallowable in the case of such contractor before the submission 
of such proposal, the agency head shall assess a penalty against the 
contractor in an amount equal to two 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 agency head shall prescribe 
regulations providing 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 to Disallowance 
of Cost and Assessment of Penalty.--An action of an agency head under 
subsection (a) or (b)--
            ``(1) shall be considered a final decision for the purposes 
        of section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 
        605); and
            ``(2) is appealable in the manner provided in section 7 of 
        such Act.
    ``(e) Specific Costs Not Allowable.--(1) The following costs are 
not allowable under a covered contract:
            ``(A) Costs of entertainment, including amusement, 
        diversion, and social activities, and any costs directly 
        associated with such costs (such as tickets to shows or sports 
        events, meals, lodging, rentals, transportation, and 
        gratuities).
            ``(B) Costs incurred to influence (directly or indirectly) 
        legislative action on any matter pending before Congress or a 
        State legislature.
            ``(C) Costs incurred in defense of any civil or criminal 
        fraud proceeding or similar proceeding (including filing of any 
        false certification) brought by the United States 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).
            ``(D) 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 such payments in 
        accordance with applicable regulations of the agency head 
        concerned.
            ``(E) Costs of membership in any social, dining, or country 
        club or organization.
            ``(F) Costs of alcoholic beverages.
            ``(G) Contributions or donations, regardless of the 
        recipient.
            ``(H) Costs of advertising designed to promote the 
        contractor or its products.
            ``(I) Costs of promotional items and memorabilia, including 
        models, gifts, and souvenirs.
            ``(J) Costs for travel by commercial aircraft which exceed 
        the amount of the standard commercial fare.
            ``(K) Costs incurred in making any payment (commonly known 
        as a `golden parachute payment') which is--
                    ``(i) in an amount in excess of the normal 
                severance pay paid by the contractor to an employee 
                upon termination of employment; and
                    ``(ii) is paid to the employee contingent upon, and 
                following, a change in management control over, or 
                ownership of, the contractor or a substantial portion 
                of the contractor's assets.
            ``(L) Costs of commercial insurance that protects against 
        the costs of the contractor for correction of the contractor's 
        own defects in materials or workmanship.
            ``(M) 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 
        regulations prescribed by the agency head concerned.
            ``(N) 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 United 
        States facility in that country at the request of the 
        government of that country.
            ``(O) Costs incurred by a contractor in connection with any 
        criminal, civil, or administrative proceeding commenced by the 
        United States or a State, to the extent provided in subsection 
        (k).
    ``(2)(A) Pursuant to regulations prescribed by the head of the 
executive agency concerned and subject to the availability of 
appropriations, the agency head, in awarding a covered contract, may 
waive the application of the provisions of paragraphs (1)(M) and (1)(N) 
to that contract if the agency head determines that--
            ``(i) the application of such provisions to the 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;
            ``(ii) 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 payment of 
        severance pay by the contractor to employees under the contract 
        who are foreign nationals; and
            ``(iii) the payment of severance pay is necessary in order 
        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.
    ``(B) The head of the executive agency concerned shall include in 
the solicitation for a covered contract a statement indicating--
            ``(i) that a waiver has been granted under subparagraph (A) 
        for the contract; or
            ``(ii) whether the agency head will consider granting such 
        a waiver, and, if the agency head will consider granting a 
        waiver, the criteria to be used in granting the waiver.
    ``(C) The agency head shall make the final determination regarding 
whether to grant a waiver under subparagraph (A) with respect to a 
covered contract before award of the contract.
    ``(3) The head of each executive agency concerned shall prescribe 
regulations to implement this section with respect to contracts of that 
executive agency. Such regulations may establish appropriate 
definitions, exclusions, limitations, and qualifications.
    ``(f) Required Regulations.--(1) The Federal Acquisition Regulation 
referred to in section 25(c)(1) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 421(c)(1)) shall contain provisions on the 
allowability of contractor costs. Such provisions shall define in 
detail and in specific terms those costs which are unallowable, in 
whole or in part, under covered contracts. The regulations shall, at a 
minimum, clarify the cost principles applicable to contractor costs of 
the following:
            ``(A) Air shows.
            ``(B) Membership in civic, community, and professional 
        organizations.
            ``(C) Recruitment.
            ``(D) Employee morale and welfare.
            ``(E) 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).
            ``(F) Community relations.
            ``(G) Dining facilities.
            ``(H) Professional and consulting services, including legal 
        services.
            ``(I) Compensation.
            ``(J) Selling and marketing.
            ``(K) Travel.
            ``(L) Public relations.
            ``(M) Hotel and meal expenses.
            ``(N) Expense of corporate aircraft.
            ``(O) Company-furnished automobiles.
            ``(P) Advertising.
    ``(2) The Federal Acquisition Regulation shall require that a 
contracting officer not resolve any questioned costs until the 
contracting officer has obtained--
            ``(A) adequate documentation with respect to such costs; 
        and
            ``(B) the opinion of the executive agency's contract 
        auditor on the allowability of such costs.
    ``(3) The Federal Acquisition Regulation shall provide that, to the 
maximum extent practicable, an executive agency's contract auditor be 
present at any negotiation or meeting with the contractor regarding a 
determination of the allowability of indirect costs of the contractor.
    ``(4) The Federal Acquisition Regulation shall require that all 
categories of costs designated in the report of an executive agency's 
contract auditor as questioned with respect to a proposal for 
settlement be resolved in such a manner that the amount of the 
individual questioned costs that are paid will be reflected in the 
settlement.
    ``(g) Applicability of Required Regulations.--The regulations 
required to be prescribed under subsections (e) and (f)(1) shall 
require, to the maximum extent practicable, that such regulations apply 
to all subcontractors of a covered contract.
    ``(h) Contractor Certification Required.--(1) 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. Any such certification 
shall be in a form prescribed by the agency head concerned.
    ``(2) The agency head concerned may, in an exceptional case, waive 
the requirement for certification under paragraph (1) in the case of 
any contract if the agency head--
            ``(A) determines in such case that it would be in the 
        interest of the United States to waive such certification; and
            ``(B) states in writing the reasons for that determination 
        and makes such determination available to the public.
    ``(i) Penalties for Submission of Cost Known as Not Allowable.--The 
submission to an executive agency of a proposal for settlement of costs 
for any period after such costs have been accrued that includes a cost 
that is expressly specified by statute or regulation as being 
unallowable, with the knowledge that such cost is unallowable, shall be 
subject to the provisions of section 287 of title 18, United States 
Code, and section 3729 of title 31, United States Code.
    ``(j) Contractor To Have Burden of Proof.--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 United States 
is in issue, the burden of proof shall be upon the contractor to 
establish that those costs are reasonable.
    ``(k) Proceeding Costs Not Allowable.--(1) Except as otherwise 
provided in this subsection, costs incurred by a contractor in 
connection with any criminal, civil, or administrative proceeding 
commenced by the United States or a State are not allowable as 
reimbursable costs under a covered contract if the proceeding (A) 
relates to a violation of, or failure to comply with, a Federal or 
State statute or regulation, and (B) results in a disposition described 
in paragraph (2).
    ``(2) A disposition referred to in paragraph (1)(B) is any of the 
following:
            ``(A) In the case of 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 paragraph 
        (1).
            ``(B) In the case of 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 paragraph (1).
            ``(C) In the case of any civil or administrative 
        proceeding, the imposition of a monetary penalty by reason of 
        the violation or failure referred to in paragraph (1).
            ``(D) A final decision--
                    ``(i) to debar or suspend the contractor,
                    ``(ii) to rescind or void the contract, or
                    ``(iii) to terminate the contract for default,
        by reason of the violation or failure referred to in paragraph 
        (1).
            ``(E) A disposition of the proceeding by consent or 
        compromise if such action could have resulted in a disposition 
        described in subparagraph (A), (B), (C), or (D).
    ``(3) In the case of a proceeding referred to in paragraph (1) that 
is commenced by the United States and is resolved by consent or 
compromise pursuant to an agreement entered into by a contractor and 
the United States, the costs incurred by the contractor in connection 
with such proceeding that are otherwise not allowable as reimbursable 
costs under such paragraph may be allowed to the extent specifically 
provided in such agreement.
    ``(4) In the case of a proceeding referred to in paragraph (1) that 
is commenced by a State, the agency head that awarded the covered 
contract involved in the proceeding may allow the costs incurred by the 
contractor in connection with such proceeding as reimbursable costs if 
the agency head determines, under regulations prescribed by such agency 
head, that the costs were incurred as a result of (A) a specific term 
or condition of the contract, or (B) specific written instructions of 
the agency.
    ``(5)(A) Except as provided in subparagraph (C), costs incurred by 
a contractor in connection with a criminal, civil, or administrative 
proceeding commenced by the United States or a State in connection with 
a covered contract may be allowed as reimbursable costs under the 
contract if such costs are not disallowable under paragraph (1), but 
only to the extent provided in subparagraph (B).
    ``(B)(i) The amount of the costs allowable under subparagraph (A) 
in any case may not exceed the amount equal to 80 percent of the amount 
of the costs incurred, to the extent that such costs are determined to 
be otherwise allowable and allocable under the Federal Acquisition 
Regulation.
    ``(ii) Regulations issued for the purpose of clause (i) 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 United States as a party, and such 
other factors as may be appropriate.
    ``(C) In the case of a proceeding referred to in subparagraph (A), 
contractor costs otherwise allowable as reimbursable costs under this 
paragraph are not allowable if (i) such proceeding involves the same 
contractor misconduct alleged as the basis of another criminal, civil, 
or administrative proceeding, and (ii) the costs of such other 
proceeding are not allowable under paragraph (1).
    ``(6) In this subsection:
            ``(A) The term `proceeding' includes an investigation.
            ``(B) The term `costs', with respect to a proceeding--
                    ``(i) means all costs incurred by a contractor, 
                whether before or after the commencement of any such 
                proceeding; and
                    ``(ii) includes--
                            ``(I) administrative and clerical expenses;
                            ``(II) the cost of legal services, 
                        including legal services performed by an 
                        employee of the contractor;
                            ``(III) the cost of the services of 
                        accountants and consultants retained by the 
                        contractor; and
                            ``(IV) the pay of directors, officers, and 
                        employees of the contractor for time devoted by 
                        such directors, officers, and employees to such 
                        proceeding.
            ``(C) The term `penalty' does not include restitution, 
        reimbursement, or compensatory damages.
    ``(l) Periodic Evaluation of Implementation.--(1) The Comptroller 
General shall periodically evaluate the implementation of this section 
by the heads of executive agencies. Such evaluation shall consider the 
extent to which--
            ``(A) the implementation is consistent with congressional 
        intent;
            ``(B) the implementation achieves the objective of 
        eliminating unallowable costs charged to covered contracts; and
            ``(C) the implementation (as well as the provisions of this 
        section and the regulations prescribed under this section) 
        could be improved or strengthened.
    ``(2) The Comptroller General shall submit to the Committees on 
Governmental Affairs and on Appropriations of the Senate and the 
Committees on Government Operation and on Appropriations of the House 
of Representatives a report on such evaluation within 90 days after the 
head of any executive agency publishes in the Federal Register 
regulations that make substantive changes in regulations pertaining to 
allowable costs under covered contracts.
    ``(m) Covered Contract Defined.--In this section, 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 such term does not 
include a fixed-price contract without cost incentives.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act is amended by striking out the item relating to section 306 
and inserting in lieu thereof the following:

``Sec. 306. Allowable costs.''.

                    PART III--ACQUISITIONS GENERALLY

SEC. 2191. TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS.

    Section 24 of the Office of Federal Procurement Policy Act (41 
U.S.C. 420) is repealed.

                Subtitle C--Audit and Access to Records

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2201. CONSOLIDATION AND REVISION OF AUTHORITY TO EXAMINE RECORDS 
              OF CONTRACTORS.

    (a) Authority.--
            (1) In general.--Section 2313 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 2313. Examination of records of contractor
    ``(a) Agency Authority.--The head of an agency, acting through an 
authorized representative--
            ``(1) is entitled to 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 such 
                contracts, made by that agency under this chapter; and
                    ``(B) a subcontractor performing any subcontract 
                under such a contract or combination of contracts; and
            ``(2) shall, for the purpose of evaluating the accuracy, 
        completeness, and currency of cost or pricing data required to 
        be submitted pursuant to section 2306a of this title with 
        respect to a contract or subcontract, have the right to 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
                    ``(D) performance of the contract or subcontract.
    ``(b) Subpoena Power.--(1) The Director of the Defense Contract 
Audit Agency (or any successor agency) may require by subpoena the 
production of records of a contractor, access to which is provided to 
the Secretary of Defense by subsection (a).
    ``(2) Any such subpoena, in the case of contumacy or refusal to 
obey, shall be enforceable by order of an appropriate United States 
district court.
    ``(3) The authority provided by paragraph (1) may not be 
redelegated.
    ``(4) The Director (or any successor official) shall submit an 
annual report to the Secretary of Defense on the exercise of such 
authority during the preceding year and the reasons why such authority 
was exercised in any instance. The Secretary shall forward a copy of 
each such report to the Committees on Armed Services of the Senate and 
House of Representatives.
    ``(c) Comptroller General Authority.--(1) Except as provided in 
paragraph (2), each contract awarded after using procedures other than 
sealed bid procedures shall provide that the Comptroller General and 
his representatives are entitled to examine any records of the 
contractor, or any of its subcontractors, that directly pertain to, and 
involve transactions relating to, the contract or subcontract.
    ``(2) Paragraph (1) does not apply to a contract or subcontract 
with a foreign contractor or foreign subcontractor if the head of the 
agency concerned determines, with the concurrence of the Comptroller 
General or his designee, that the application of that paragraph to the 
contract or subcontract would not be in the public interest. However, 
the concurrence of the Comptroller General or his designee is not 
required--
            ``(A) where the contractor or subcontractor is a foreign 
        government or agency thereof or is precluded by the laws of the 
        country involved from making its records available for 
        examination; and
            ``(B) where the head of the 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).
    ``(d) Limitation.--The right of the head of an agency under 
subsection (a), and the right of the Comptroller General under 
subsection (c), with respect to a contract or subcontract shall expire 
three years after final payment under such contract or subcontract.
    ``(e) Inapplicability to Certain Contracts.--This section is 
inapplicable with respect 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.
    ``(f) Records Defined.--In this section, the term `records' 
includes books, documents, accounting procedures and practices, and 
other data, regardless of type and regardless of whether such items are 
in written form, in the form of computer data, or in any other form.''.
            (2) Clerical amendment.--The item relating to such section 
        in the table of sections at the beginning of chapter 137 of 
        title 10, United States Code, is amended to read as follows:

``2313. Examination of records of contractor.''.
    (b) Repeal of Superseded Provision.--
            (1) Repeal.--Section 2406 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by striking 
        out the item relating to section 2406.

                 PART II--CIVILIAN AGENCY ACQUISITIONS

SEC. 2251. AUTHORITY TO EXAMINE RECORDS OF CONTRACTORS.

    (a) Authority.--
            (1) In general.--Title III of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as 
        amended by section 1251(a), is further amended by inserting 
        after section 304A the following new section:

                 ``examination of records of contractor

    ``Sec. 304B. (a) Agency Authority.--The head of an executive 
agency, acting through an authorized representative--
            ``(1) is entitled to 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 such 
                contracts, made by that executive agency under this 
                title; and
                    ``(B) a subcontractor performing any subcontract 
                under such a contract or combination of contracts; and
            ``(2) shall, for the purpose of evaluating the accuracy, 
        completeness, and currency of cost or pricing data required to 
        be submitted pursuant to section 304A with respect to a 
        contract or subcontract, have the right to 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
                    ``(D) performance of the contract or subcontract.
    ``(b) Subpoena Power.--(1) The agency head may require by subpoena 
the production of records of a contractor, access to which is provided 
by subsection (a).
    ``(2) Any such subpoena, in the case of contumacy or refusal to 
obey, shall be enforceable by order of an appropriate United States 
district court.
    ``(3) The authority provided by paragraph (1) may not be delegated.
    ``(4) In the year following a year in which the head of an 
executive agency exercises the authority provided in paragraph (1), the 
agency head shall submit to the Committee on Governmental Affairs of 
the Senate and the Committee on Government Operations of the House of 
Representatives a report on the exercise of such authority during such 
preceding year and the reasons why such authority was exercised in any 
instance.
    ``(c) Comptroller General Authority.--(1) Except as provided in 
paragraph (2), each contract awarded after using procedures other than 
sealed bid procedures shall provide that the Comptroller General and 
his representatives are entitled to examine any records of the 
contractor, or any of its subcontractors, that directly pertain to, and 
involve transactions relating to, the contract or subcontract.
    ``(2) Paragraph (1) does not apply to a contract or subcontract 
with a foreign contractor or foreign subcontractor if the agency head 
concerned determines, with the concurrence of the Comptroller General 
or his designee, that the application of that paragraph to the contract 
or subcontract would not be in the public interest. However, the 
concurrence of the Comptroller General or his designee is not 
required--
            ``(A) where the contractor or subcontractor is a foreign 
        government or agency thereof or is precluded by the laws of the 
        country involved from making its records available for 
        examination; and
            ``(B) where the agency head 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).
    ``(d) Limitation.--The right of an agency head under subsection 
(a), and the right of the Comptroller General under subsection (c), 
with respect to a contract or subcontract shall expire three years 
after final payment under such contract or subcontract.
    ``(e) Inapplicability to Certain Contracts.--This section is 
inapplicable with respect 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.
    ``(f) Records Defined.--In this section, the term `records' 
includes books, documents, accounting procedures and practices, and 
other data, regardless of type and regardless of whether such items are 
in written form, in the form of computer data, or in any other form.''.
            (2) Clerical amendment.--The table of contents in the first 
        section of such Act, as amended by section 1251(b), is further 
        amended by inserting after the item relating to section 304A 
        the following:

``Sec. 304B. Examination of records of contractor.''.
    (b) Repeal of Superseded Provision.--Section 304 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254) is 
amended by striking out subsection (c).

                 Subtitle D--Cost Accounting Standards

SEC. 2301. REPEAL OF OBSOLETE DEADLINE REGARDING PROCEDURAL REGULATIONS 
              FOR THE COST ACCOUNTING STANDARDS BOARD.

    Section 26(f)(3) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 422(f)(3)) is amended in the first sentence by striking out 
``Not later than 180 days after the date of the enactment of this 
section, the Administrator'' and inserting in lieu thereof ``The 
Administrator''.

 Subtitle E--Administration of Contract Provisions Relating to Price, 
                     Delivery, and Product Quality

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2401. PROCUREMENT OF CRITICAL AIRCRAFT AND SHIP SPARE PARTS; 
              QUALITY CONTROL.

    (a) Repeal.--Section 2383 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by striking out the item relating 
to section 2383.

SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS.

    Section 2403(h) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The regulations shall include the following:
            ``(A) Guidelines for negotiating contractor guarantees that 
        are reasonable and cost effective, as determined on the basis 
        of the likelihood of defects and the estimated cost of 
        correcting such defects.
            ``(B) Procedures for administering contractor guarantees.
            ``(C) Guidelines for determining the cases in which it may 
        be appropriate to waive the requirements of this section.''.

SEC. 2403. REPEAL OF REQUIREMENT FOR COMPLETE DELIVERY OF SUBSISTENCE 
              SUPPLIES AT SPECIFIC PLACE UPON INSPECTION.

    (a) Army Contracts.--
            (1) Repeal.--Section 4534 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 433 of such title is amended by striking 
        out the item relating to section 4534.
    (b) Air Force Contracts.--
            (1) Repeal.--Section 9534 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 933 of such title is amended by striking 
        out the item relating to section 9534.

                    PART II--ACQUISITIONS GENERALLY

SEC. 2451. SECTION 3737 OF THE REVISED STATUTES: EXPANSION OF AUTHORITY 
              TO PROHIBIT SETOFFS AGAINST ASSIGNEES; REORGANIZATION OF 
              SECTION; REVISION OF OBSOLETE PROVISIONS.

    Section 3737 of the Revised Statutes (41 U.S.C. 15) is amended to 
read as follows:
    ``Sec. 3737. (a) No contract or order, or any interest therein, 
shall be transferred by the party to whom such contract or order is 
given to any other party, and any such transfer shall cause the 
annulment of the contract or order transferred, so far as the United 
States is concerned. All rights of action, however, for any breach of 
such contract by the contracting parties, are reserved to the United 
States.
    ``(b) The provisions of subsection (a) shall not apply in any case 
in which the moneys due or to become due from the United States or from 
any agency or department thereof, under a contract providing for 
payments aggregating $1,000 or more, are assigned to a bank, trust 
company, or other financing institution, including any Federal lending 
agency, provided:
            ``(1) That, in the case of any contract entered into after 
        October 9, 1940, no claim shall be assigned if it arises under 
        a contract which forbids such assignment;
            ``(2) That, unless otherwise expressly permitted by such 
        contract, any such assignment shall cover all amounts payable 
        under such contract and not already paid, shall not be made to 
        more than one party, and shall not be subject to further 
        assignment, except that any such assignment may be made to one 
        party as agent or trustee for two or more parties participating 
        in such financing;
            ``(3) That, in the event of any such assignment, the 
        assignee thereof shall file written notice of the assignment 
        together with a true copy of the instrument of the assignment 
        with--
                    ``(A) the contracting officer or the head of his 
                department or agency;
                    ``(B) the surety or sureties upon the bond or 
                bonds, if any, in connection with such contract; and
                    ``(C) the disbursing officer, if any, designated in 
                such contract to make payment.
    ``(c) Notwithstanding any law to the contrary governing the 
validity of assignments, any assignment pursuant to this section shall 
constitute a valid assignment for all purposes.
    ``(d) In any case in which moneys due or to become due under any 
contract are or have been assigned pursuant to this section, no 
liability of any nature of the assignor to the United States or any 
department or agency thereof, whether arising from or independently of 
such contract, shall create or impose any liability on the part of the 
assignee to make restitution, refund, or repayment to the United States 
of any amount heretofore since July 1, 1950, or hereafter received 
under the assignment.
    ``(e) Any contract of the Department of Defense, the General 
Services Administration, the Department of Energy, or any other 
department or agency of the United States designated by the President, 
except any such contract under which full payment has been made, may, 
upon a determination of need by the President, provide or be amended 
without consideration to provide that payments to be made to the 
assignee of any moneys due or to become due under such contract shall 
not be subject to reduction or setoff.
    ``(f) If a provision described in subsection (e) or a provision to 
the same general effect has been at any time heretofore or is hereafter 
included or inserted in any such contract, payments to be made 
thereafter to an assignee of any moneys due or to become due under such 
contract shall not be subject to reduction or setoff for any liability 
of any nature of the assignor to the United States or any department or 
agency thereof which arises independently of such contract, or 
hereafter for any liability of the assignor on account of--
            ``(1) renegotiation under any renegotiation statute or 
        under any statutory renegotiation article in the contract;
            ``(2) fines;
            ``(3) penalties (which term does not include amounts which 
        may be collected or withheld from the assignor in accordance 
        with or for failure to comply with the terms of the contract); 
        or
            ``(4) taxes, social security contributions, or the 
        withholding or non withholding of taxes or social security 
        contributions, whether arising from or independently of such 
        contract.
    ``(g) Except as herein otherwise provided, nothing in this section 
shall be deemed to affect or impair rights of obligations heretofore 
accrued.''.

SEC. 2452. REPEAL OF REQUIREMENT FOR DEPOSIT OF CONTRACTS WITH GAO.

    Section 3743 of the Revised Statutes (41 U.S.C. 20) is repealed.

                    Subtitle F--Claims and Disputes

                  PART I--ARMED SERVICES ACQUISITIONS

SEC. 2501. CERTIFICATION OF CONTRACT CLAIMS.

    (a) DoD Certification Requirement in Conflict With Government-Wide 
Requirement.--
            (1) Repeal.--Section 2410 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by striking 
        out the item relating to section 2410.
    (b) Repeal of Superseded Provision.--Section 813(b) of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2453), is repealed.
    (c) Restriction on Legislative Payment of Claims.--Section 2310e of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Restriction on Legislative Payment of Claims.--In the case of 
a contract of an agency named in section 2303(a) of this title, no 
provision of a law enacted after September 30, 1993, that directs the 
payment of a particular claim under such contract, a particular request 
for equitable adjustment to any term of such contract, or a particular 
request for relief under Public Law 85-804 (50 U.S.C. 1431 et seq.) 
regarding such contract may be implemented unless such provision of 
law--
            ``(1) specifically refers to this subsection; and
            ``(2) specifically states that this subsection does not 
        apply with respect to the payment directed by that provision of 
        law.''.

                    PART II--ACQUISITIONS GENERALLY

SEC. 2551. CONCURRENT JURISDICTION OF UNITED STATES DISTRICT COURTS 
              UNDER THE LITTLE TUCKER ACT.

    Subsection (a) of section 1346 of title 28, United States Code, is 
amended to read as follows:
    ``(a)(1) The district courts shall have original jurisdiction, 
concurrent with the United States Court of Federal Claims, of any civil 
action against the United States for the recovery of any internal-
revenue tax alleged to have been erroneously or illegally assessed or 
collected, or any penalty claimed to have been collected without 
authority or any sum alleged to have been excessive or in any manner 
wrongfully collected under the internal-revenue laws.
    ``(2)(A) Except as provided in subparagraph (B), the district 
courts shall have original jurisdiction, concurrent with the United 
States Court of Federal Claims, of any other civil action or claim 
against the United States, not exceeding $10,000 in amount, founded 
either upon the Constitution, or any Act of Congress, or any regulation 
of an executive department, or upon any express or implied contract 
with the United States, or for liquidated or unliquidated damages in 
cases not sounding in tort.
    ``(B) The district courts shall not have jurisdiction over any 
civil action or claim against the United States which relates in any 
manner to a contract to which the Contract Disputes Act of 1978 (41 
U.S.C. 601 et seq.) applies, including a claim that seeks to establish 
the existence or nonexistence of such a contract, seeks to establish 
that such a contract is void, or seeks to determine and construe the 
terms of such a contract. The district courts do not have jurisdiction 
over any civil action or claim described in the preceding sentence 
pursuant to section 1331 or 1334 of this title or any other provision 
of law.''.

SEC. 2552. CONTRACT DISPUTES ACT IMPROVEMENTS.

    (a) Period for Filing Claims.--Section 6 of the Contract Disputes 
Act of 1978 (41 U.S.C. 605) is amended in subsection (a) by inserting 
after the second sentence the following: ``Each claim by a contractor 
against the government relating to a contract and each claim by the 
government against a contractor relating to a contract shall be 
submitted within 6 years after the occurrence of the event or events 
giving rise to the claim.''.
    (b) Increased Threshold for Certification, Decision, and 
Notification Requirements.--Subsection (c) of such section is amended 
by striking out ``$50,000'' each place it appears and inserting in lieu 
thereof ``$100,000''.
    (c) Increased Maximum for Applicability of Small Claims 
Procedure.--Section 9(a) of the Contract Disputes Act of 1978 (41 
U.S.C. 608(a)) is amended by striking out ``$10,000'' in the first 
sentence and inserting in lieu thereof ``$25,000''.
    (d) Reduced Period for Filing Action in Court of Federal Claims.--
Section 10(a)(3) of such Act (41 U.S.C. 609(a)(3)) is amended by 
striking out ``twelve months'' and inserting in lieu thereof ``90 
days''.
    (e) Claim Defined.--Section 2 of such Act (41 U.S.C. 601) is 
amended--
            (1) by striking out ``and'' at the end of paragraph (6);
            (2) by striking out the period at the end of paragraph (7) 
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(8) the term `claim' includes a request for equitable 
        adjustment to contact terms and a request for relief under 
        Public Law 85-804 (50 U.S.C. 1431 et seq.).''.

         TITLE III--SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES

                   Subtitle A--Major Systems Statutes

SEC. 3001. REQUIREMENT FOR INDEPENDENT COST ESTIMATES AND MANPOWER 
              ESTIMATES BEFORE DEVELOPMENT OR PRODUCTION.

    (a) Content and Submission of Estimates.--Section 2434 of title 10, 
United States Code, is amended by striking out subsection (b) and 
inserting in lieu thereof the following:
    ``(b) Regulations.--The Secretary of Defense shall promulgate 
regulations governing the content and submission of the estimates 
required by subsection (a). The regulations shall require--
            ``(1) that the independent estimate of the cost of a 
        program--
                    ``(A) be prepared by an office or other entity that 
                is not under the supervision, direction, or control of 
                the military department, Defense Agency, or other 
                component of the Department of Defense that is directly 
                responsible for carrying out the development or 
                acquisition of the program; and
                    ``(B) include all costs of development, 
                procurement, and operations and support, without regard 
                to funding source or management control; and
            ``(2) that the manpower estimate include the total 
        personnel required to operate, maintain, and support the 
        program upon full operational deployment.''.
    (b) Terminology Correction.--Subsection (a) of such section is 
amended by striking out ``full-scale engineering development'' and 
inserting in lieu thereof ``engineering and manufacturing 
development''.

SEC. 3002. ENHANCED PROGRAM STABILITY.

    (a) Baseline Descriptions and Deviation Reporting.--Section 2435 of 
title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking out paragraph (2); and
                    (B) in paragraph (1)--
                            (i) by striking out ``(1)''; and
                            (ii) by redesignating subparagraphs (A) and 
                        (B) as paragraphs (1) and (2), respectively; 
                        and
            (2) by striking out subsection (b) and inserting in lieu 
        thereof the following:
    ``(b) Regulations.--The Secretary of Defense shall promulgate 
regulations governing--
            ``(1) the content of baseline descriptions;
            ``(2) the submission of reports on deviations of a program 
        from the baseline description by the program manager to the 
        Secretary of the military department concerned and the Under 
        Secretary of Defense for Acquisition;
            ``(3) procedures for review of deviation reports within the 
        Department of Defense; and
            ``(4) procedures for submission and approval of revised 
        baseline descriptions.''.
    (b) Terminology Correction.--Subsection (a)(1) of such section, as 
redesignated by subsection (a)(1)(B)(ii), is amended by striking out 
``full-scale engineering development'' and inserting in lieu thereof 
``engineering and manufacturing development''.

SEC. 3003. REPEAL OF REQUIREMENT FOR DEFENSE ENTERPRISE PROGRAMS.

    (a) Authority.--
            (1) Repeal.--Sections 2436 and 2437 of title 10, United 
        States Code, are repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 144 of such title is amended by striking 
        out the items relating to sections 2436 and 2437.
    (b) Conforming Amendment.--Section 809 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 
2430 note) is amended--
            (1) by striking out subsection (d); and
            (2) by redesignating subsections (e), (f), (g), and (h) as 
        subsections (d), (e), (f), and (g), respectively.

SEC. 3004. REPEAL OF REQUIREMENT FOR COMPETITIVE PROTOTYPING IN MAJOR 
              PROGRAMS.

    (a) Repeal.--Section 2438 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by striking out the item relating 
to section 2438.

SEC. 3005. REPEAL OF REQUIREMENT FOR COMPETITIVE ALTERNATIVE SOURCES IN 
              MAJOR PROGRAMS.

    (a) Repeal.--Section 2439 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 144 of such title is amended by striking out the item relating 
to section 2439.

                      Subtitle B--Testing Statutes

SEC. 3011. REPEAL OF TESTING REQUIREMENT FOR WHEELED OR TRACKED 
              VEHICLES.

    (a) Repeal.--Section 2362 of title 10, United States Code, is 
repealed.
    (b) Technical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking out the item relating 
to section 2362.

SEC. 3012. MAJOR SYSTEMS AND MUNITIONS PROGRAMS: SURVIVABILITY AND 
              LETHALITY TESTING.

    (a) Substitution of Vulnerability Testing for Survivability 
Testing.--Section 2366 of title 10, United States Code, is amended--
            (1) by striking out ``survivability'' each place it appears 
        in subsections (a)(1)(A), (a)(2)(A), (c)(1), (d), (e)(3), and 
        (e)(6)(A) and inserting in lieu thereof ``vulnerability''; and
            (2) in subsection (b)(1), by striking out ``Survivability'' 
        and inserting in lieu thereof ``Vulnerability''.
    (b) Less Than Full-Up Testing Authorized.--Section 2366(e)(3) of 
such title is amended by inserting after ``configured for combat,'' the 
following: ``or, if the covered system is a high value system, by 
firing such munitions at components, subsystems, and subassemblies (or 
realistic replicas or surrogates) together with performing design 
analyses, modeling and simulation, and analysis of combat data,''.
    (c) Waiver Authority After Full-Scale Development Begins.--Section 
2366(c)(1) of such title is amended in the first sentence by striking 
out ``, before the system enters full-scale development,''.
    (d) Reference to Congressional Committees.--Section 2366(d) of such 
title is amended in the first sentence by striking out ``defense 
committees of Congress (as defined in section 2362(e)(3) of this 
title)'' and inserting in lieu thereof ``Committees on Armed Services 
and on Appropriations of the Senate and House of Representatives''.

SEC. 3013. OPERATIONAL TEST AND EVALUATION OF DEFENSE ACQUISITION 
              PROGRAMS.

    Section 2399(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5)(A) The Secretary of Defense may, for a particular major 
defense acquisition program, prescribe and apply different operational 
test and evaluation procedures than those provided under subsection (a) 
and paragraphs (1) through (3) of this subsection if the Secretary 
first transmits to Congress--
            ``(i) a certification that such testing would be 
        unreasonably expensive and impracticable, cause unwarranted 
        delay, or be unnecessary because of the acquisition strategy 
        for that system; and
            ``(ii) a description of the actions taken to ensure that 
        the system will be operationally effective and suitable when 
        the system is introduced into the field.
    ``(B) Alternative operational test and evaluation procedures 
prescribed pursuant to subparagraph (A) may not be used to proceed with 
a major defense acquisition program beyond low-rate initial 
production.''.

SEC. 3014. LOW-RATE INITIAL PRODUCTION OF NEW SYSTEMS.

    (a) Exception for Strategic Defense Missile Systems.--Subsection 
(c) of section 2400 of title 10, United States Code, is amended to read 
as follows--
            (1) in paragraph (1), by striking out ``and military 
        satellite programs'' and inserting in lieu thereof ``, military 
        satellite programs, and strategic defense missile programs'';
            (2) in paragraph (2), by striking out ``and military 
        satellite program'' and inserting in lieu thereof ``, military 
        satellite program, and strategic defense missile program''; and
            (3) by striking out the caption of such subsection and 
        inserting in lieu thereof ``Low-Rate Initial Production of 
        Naval Vessel, Satellite, and Strategic Defense Missile 
        Programs.--''.
    (b) Submission of Test and Evaluation Master Plan.--Paragraph (2) 
of such section is amended by striking out subparagraph (B) and 
inserting in lieu thereof the following:
            ``(B) any test and evaluation master plan prepared for that 
        program;''.

                   Subtitle C--Service Specific Laws

SEC. 3021. INDUSTRIAL MOBILIZATION.

    (a) Consolidation and Revision of Authority.--
            (1) Authority.--Subtitle V of chapter 148 of title 10, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 2538. Industrial mobilization: orders; priorities; possession of 
              manufacturing plants; violations
    ``(a) Ordering Authority.--In time of war or when war is imminent, 
the President, through the Secretary of Defense or the Secretary of a 
military department, may order from any person or organized 
manufacturing industry necessary products or materials of the type 
usually produced or capable of being produced by that person or 
industry.
    ``(b) Compliance With Order Required.--A person or industry with 
whom an order is placed under subsection (a), or the responsible head 
thereof, shall comply with that order and give it precedence over all 
orders not placed under that subsection.
    ``(c) Seizure of Facilities Upon Noncompliance.--In time of war or 
when war is imminent, the President, through the Secretary of Defense 
or the Secretary of a military department, may take immediate 
possession of any plant that is equipped to manufacture, or that in the 
opinion of the Secretary of Defense or the Secretary of the military 
department concerned, is capable of being readily transformed into a 
plant for manufacturing, arms or ammunition, parts thereof, or 
necessary supplies for the armed forces if the person or industry 
owning or operating the plant, or the responsible head thereof, 
refuses--
            ``(1) to give precedence to the order as prescribed in 
        subsection (b);
            ``(2) to manufacture the kind, quantity, or quality of arms 
        or ammunition, parts thereof, or necessary supplies, as ordered 
        by the Secretary; or
            ``(3) to furnish them at a reasonable price as determined 
        by the Secretary.
    ``(d) Use of Seized Facility.--The President, through the Secretary 
of Defense or the Secretary of a military department, may manufacture 
products that are needed in time of war or when war is imminent, in any 
plant that is seized under subsection (c).
    ``(e) Compensation Required.--Each person or industry from whom 
products or materials are ordered under subsection (a) is entitled to 
fair and just compensation. Each person or industry whose plant is 
seized under subsection (c) is entitled to a fair and just rental.
    ``(f) Criminal Penalty.--Whoever fails to comply with this section 
shall be imprisoned for not more than three years and fined not more 
than $50,000.''.
            (2) Technical amendment.--The table of sections at the 
        beginning of subchapter V of such chapter is amended by adding 
        at the end the following new item:

``2538. Industrial mobilization: orders; priorities; possession of 
                            manufacturing plants; violations.''.
    (b) Repeal of Superseded Authority.--
            (1) Army authority.--
                    (A) Repeal.--Section 4501 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 431 of such title is amended 
                by striking out the item relating to section 4501.
            (2) Air force authority.--
                    (A) Repeal.--Section 9501 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of subchapter I of chapter 931 of such 
                title is amended by striking out the item relating to 
                section 9501.

SEC. 3022. INDUSTRIAL MOBILIZATION: PLANTS; LISTS; BOARD ON 
              MOBILIZATION OF INDUSTRIES ESSENTIAL FOR MILITARY 
              PREPAREDNESS.

    (a) Consolidation and Revision of Authority.--
            (1) Authority.--Subchapter V of chapter 148 of title 10, 
        United States Code, as amended by section 3021(a)(1), is 
        further amended by adding at the end the following:
``Sec. 2539. Industrial mobilization: plants; lists; Board on 
              Mobilization of Industries Essential for Military 
              Preparedness
    ``(a) Lists of Arms and Ammunition Plants.--The Secretary of 
Defense and the secretaries of the military departments may each 
maintain a list of privately owned plants in the United States, and the 
Territories, Commonwealths, and possessions of the United States, that 
are equipped to manufacture for the armed forces arms or ammunition, or 
parts thereof, and may, when the Secretary of Defense or the Secretary 
concerned determines it necessary, obtain complete information of the 
kinds of those products manufactured or capable of being manufactured 
by each of those plants, and of the equipment and capacity of each of 
those plants.
    ``(b) Lists of Plants Convertible to Arms and Ammunition 
Factories.--The Secretary of Defense and the secretaries of the 
military departments may each maintain a list of privately owned plants 
in the United States, and the Territories, Commonwealths, and 
possessions of the United States, that are capable of being readily 
transformed into factories for the manufacture of ammunition for the 
armed forces and that have a capacity sufficient to warrant conversion 
into ammunition plants in time of war or when war is imminent, and may, 
when the Secretary of Defense or the Secretary concerned determines it 
necessary, obtain complete information as to the equipment of each of 
those plants.
    ``(c) Conversion Plans.--The Secretary of Defense or the Secretary 
concerned may prepare comprehensive plans for converting each plant 
listed pursuant to subsection (b) into a factory for the manufacture of 
ammunition or parts thereof.
    ``(d) Board on Mobilization of Industries Essential for Military 
Preparedness.--The President may appoint a nonpartisan Board on 
Mobilization of Industries Essential for Military Preparedness and may 
provide necessary clerical assistance to organize and coordinate 
operations under this section and section 2538 of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter V of such chapter, as amended by 
        section 3021(a)(2), is further amended by adding at the end the 
        following new item:

``2539. Industrial mobilization: plants; lists; Board on Mobilization 
                            of Industries Essential for Military 
                            Preparedness.''.
    (b) Repeal of Superseded Authority.--
            (1) Army authority.--
                    (A) Repeal.--Section 4502 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 431 of such title is amended 
                by striking out the item relating to section 4502.
            (2) Air force authority.--
                    (A) Repeal.--Section 9502 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of subchapter I of chapter 931 of such 
                title is amended by striking out the item relating to 
                section 9502.

SEC. 3023. PROCUREMENT FOR EXPERIMENTAL PURPOSES.

    (a) Consolidation and Revision of Authority.--
            (1) Authority.--Chapter 139 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2373. Procurement for experimental purposes
    ``The Secretary of Defense and the secretaries of the military 
departments may each buy ordnance, signal, and chemical warfare 
supplies, including parts and accessories, and designs thereof, that 
the Secretary of Defense or the Secretary concerned considers necessary 
for experimental or test purposes in the development of the best 
supplies that are needed for the national defense. Purchases under this 
section may be made inside or outside the United States by contract or 
otherwise. Chapter 137 of this title applies when such purchases are 
made in quantity.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2373. Procurement for experimental purposes.''.
    (b) Repeal of Superseded Authority.--
            (1) Army authority.--
                    (A) Repeal.--Section 4504 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 431 of such title is amended 
                by striking out the item relating to section 4504.
            (2) Air force authority.--
                    (A) Repeal.--Section 9504 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of subchapter I of chapter 931 of such 
                title is amended by striking out the item relating to 
                section 9504.

SEC. 3024. REPEAL OF AUTHORITY FOR PROCUREMENT OF PRODUCTION EQUIPMENT.

    (a) Army Authority.--
            (1) Repeal.--Section 4505 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 431 of such title is amended by striking 
        out the item relating to section 4505.
    (b) Air Force Authority.--
            (1) Repeal.--Section 9505 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter I of chapter 931 of such title is 
        amended by striking out the item relating to section 9505.

SEC. 3025. AVAILABILITY OF DEPARTMENT OF DEFENSE SAMPLES, DRAWINGS, 
              INFORMATION, EQUIPMENT, MATERIALS, AND CERTAIN SERVICES.

    (a) Consolidation and Revision of Authority.--
            (1) Authority.--Subchapter V of chapter 148 of title 10, 
        United States Code, as amended by section 3022(a)(1), is 
        further amended by adding at the end the following:
``Sec. 2540. Availability of samples, drawings, information, equipment, 
              materials, and certain services
    ``(a) Authority.--The Secretary of Defense and the secretaries of 
the military departments, under regulations prescribed by the Secretary 
of Defense and when determined by the Secretary of Defense or the 
Secretary concerned to be in the interest of national defense, may 
each--
            ``(1) sell, lend, or give samples, drawings, and 
        manufacturing or other information (subject to the rights of 
        third parties) to any person or entity;
            ``(2) sell or lend government equipment or materials to any 
        person or entity--
                    ``(A) for use in independent research and 
                development programs, subject to the condition that the 
                equipment or material be used exclusively for such 
                research and development; or
                    ``(B) for use in demonstrations to a friendly 
                foreign government; and
            ``(3) make available to any person or entity, at an 
        appropriate fee, the services of any government laboratory, 
        center, range, or other testing facility for the testing of 
        materials, equipment, models, computer software, and other 
        items.
    ``(b) Confidentiality of Test Results.--The results of tests 
performed with services made available pursuant to subsection (a)(3) 
are confidential and may not be disclosed outside the Federal 
Government without the consent of the persons for whom the tests are 
performed.
    ``(c) Fees.--Fees for services made available for testing under 
subsection (a)(3) shall be established in the regulations prescribed 
pursuant to subsection (a). Such fees may not be less than the direct 
costs involved, including the direct costs of utilities, contractor 
support, and salaries of personnel that are incurred by the United 
States to provide for the testing.
    ``(d) Use of Collected Fees.--Fees received for services made 
available pursuant to subsection (a)(3) may be credited to the 
appropriations or other funds of the activity providing such 
services.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter V of such chapter, as amended by 
        section 3022(a)(2), is further amended by adding at the end the 
        following new item:

``2540. Availability of samples, drawings, information, equipment, 
                            materials, and certain services.''.
    (b) Conforming Amendments.--
            (1) Exemption from advertising requirement.--Section 2314 
        of title 10, United States Code, is amended by inserting ``or 
        sale'' after ``procurement''.
            (2) Repeal of superseded army authority.--Chapter 431 of 
        title 10, United States Code, is amended--
                    (A) by striking out sections 4506, 4507, and 4508; 
                and
                    (B) in the table of sections at the beginning of 
                such chapter, by striking out the items relating to 
                such sections.
            (3) Repeal of superseded air force authority.--Subchapter I 
        of chapter 931 of title 10, United States Code, is amended--
                    (A) by striking out sections 9506 and 9507; and
                    (B) in the table of sections at the beginning of 
                such subchapter, by striking out the items relating to 
                such sections.

SEC. 3026. REPEAL OF DUPLICATIVE GENERAL PROCUREMENT AUTHORITY.

    (a) Army Authority.--
            (1) Repeal.--Section 4531 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 433 of such title is amended by striking 
        out the item relating to section 4531.
    (b) Air Force Authority.--
            (1) Repeal.--Section 9531 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 933 of such title is amended by striking 
        out the item relating to section 9531.

SEC. 3027. REPEAL OF AUTHORITY TO DELEGATE THE PROCUREMENT OF ARMY 
              RATIONS.

    (a) Repeal.--Section 4533 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 433 of such title is amended by striking out the item relating 
to section 4533.

SEC. 3028. REPEAL OF AUTHORITY TO PURCHASE EXCEPTIONAL SUBSISTENCE 
              SUPPLIES WITHOUT ADVERTISING.

    (a) Army Authority.--
            (1) Repeal.--Section 4535 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 433 of such title is amended by striking 
        out the item relating to section 4535.
    (b) Air Force Authority.--
            (1) Repeal.--Section 9535 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 933 of such title is amended by striking 
        out the item relating to section 9535.

SEC. 3029. REPEAL OF AUTHORITY TO OBTAIN ASSISTANCE OF UNITED STATES 
              MAPPING AGENCIES.

    (a) Army Authority.--
            (1) Repeal.--Section 4537 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 433 of such title is amended by striking 
        out the item relating to section 4537.
    (b) Air Force Authority.--
            (1) Repeal.--Section 9537 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 933 of such title is amended by striking 
        out the item relating to section 9537.

SEC. 3030. REPEAL OF AUTHORITY TO RECLAIM UNSERVICEABLE AMMUNITION.

    (a) Army Authority.--
            (1) Repeal.--Section 4538 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 433 of such title is amended by striking 
        out the item relating to section 4538.
    (b) Air Force Authority.--
            (1) Repeal.--Section 9538 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 933 of such title is amended by striking 
        out the item relating to section 9538.

SEC. 3031. GRATUITOUS SERVICES OF OFFICERS OF CERTAIN RESERVE 
              COMPONENTS.

    (a) Consolidation and Revision of Authority.--
            (1) Authority.--Chapter 11 of title 10, United States Code, 
        is amended by inserting after section 278 the following new 
        section:
``Sec. 279. Gratuitous services of officers of certain reserve 
              components
    ``The Secretary of Defense and the secretaries of the military 
departments may each accept the gratuitous services of officers of the 
Army Reserve, Naval Reserve, Air Force Reserve, and Marine Corps 
Reserve in the enrolling, organizing, and training of members of such 
reserve components or the Reserve Officers' Training Corps, or in 
consulting on matters relating to the armed forces.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 11 of such title is amended by inserting 
        after the item relating to section 278 the following new item:

``Sec. 279. Gratuitous services of officers of certain reserve 
                            components.''.
    (b) Repeal of Superseded Provisions.--
            (1) Army authority.--
                    (A) Repeal.--Section 4541 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 433 of such title is amended 
                by striking out the item relating to section 4541.
            (2) Air force authority.--
                    (A) Repeal.--Section 9541 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 933 of such title is amended 
                by striking out the item relating to section 9541.

SEC. 3032. CIVIL RESERVE AIR FLEET.

    (a) Definition of Contractor.--Section 9511(8) of title 10, United 
States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (A); 
        and
            (2) by inserting before the period at the end the 
        following: ``, or (C) who owns or controls, or will own or 
        control, new or existing aircraft and who, by contract, commits 
        some or all of such aircraft to the Civil Reserve Air Fleet''.
    (b) Consolidation of Provisions Relating to Contractual Commitment 
of Aircraft.--Subchapter II of chapter 931 of such title is amended--
            (1) by redesignating subsections (b) and (c) of section 
        9512 as subsections (c) and (d), respectively;
            (2) by redesignating subsection (a) of section 9513 as 
        subsection (b) and transferring such subsection (as so 
        redesignated) to section 9512, and inserting such subsection 
        after subsection (a);
            (3) by redesignating subsection (b) of section 9513 as 
        subsection (e) and transferring such subsection (as so 
        redesignated) to the end of section 9512;
            (4) in subsection (c) of section 9512, as redesignated by 
        paragraph (1), by striking out ``the terms required by section 
        9513 of this title and'';
            (5) in subsection (e) of section 9512, as redesignated and 
        transferred to such section by paragraph (3), by striking out 
        ``under section 9512 of this title'' and inserting in lieu 
        thereof ``entered into under this section''; and
            (6) by striking out the heading of section 9513.
    (c) Use of Military Installations by Contractors.--
            (1) Authority.--Subchapter II of such chapter, as amended 
        by subsection (b), is further amended by adding at the end the 
        following new section 9513:
``Sec. 9513. Use of military installations by Civil Reserve Air Fleet 
              contractors
    ``(a) Contract Authority.--(1) The Secretary of the Air Force--
            ``(A) may, by contract entered into with any contractor, 
        authorize such contractor to use one or more Air Force 
        installations designated by the Secretary; and
            ``(B) with the consent of the Secretary of another military 
        department, may, by contract entered into with any contractor, 
        authorize the contractor to use one or more installations, 
        designated by the Secretary of the Air Force, that is under the 
        jurisdiction of the Secretary of such other military 
        department.
    ``(2) The Secretary of the Air Force may include in the contract 
such terms and conditions as the Secretary determines appropriate to 
promote the national defense or to protect the interests of the United 
States.
    ``(b) Purposes of Use.--A contract entered into under subsection 
(a) may authorize use of a designated installation as a weather 
alternate, a technical stop not involving the enplaning or deplaning of 
passengers or cargo, or, in the case of an installation within the 
United States, for other commercial purposes. Notwithstanding any other 
provision of the law, the Secretary may establish different levels and 
types of uses for different installations and may provide in contracts 
under subsection (a) for different levels and types of uses by 
different contractors.
    ``(c) Disposition of Payments for Use.--Notwithstanding the 
provisions of section 1107(b) of the Federal Aviation Act of 1958 (49 
U.S.C. 1507(b)), and any other provision of law, amounts collected in a 
fiscal year from a contractor for services or supplies or as landing 
fees or other charges authorized to be collected for use of an 
installation under a contract entered into under subsection (a) shall 
be credited to an appropriation for such fiscal year for the military 
department that has jurisdiction over such installation.
    ``(d) Hold Harmless Requirement.--A contract entered into under 
subsection (a) shall provide that the contractor agrees to indemnify 
and hold harmless the Air Force (and any other armed force having 
jurisdiction over any installation covered by the contract) from all 
actions, suits, or claims of any sort resulting from, relating to, or 
arising out of any activities conducted, or services or supplies 
furnished, in connection with the contract.
    ``(e) Reservation of Right To Exclude Contractor.--A contract 
entered into under subsection (a) shall provide that the Secretary 
concerned may, without providing prior notice, deny access to an 
installation designated under the contract when the Secretary 
determines that it is necessary to do so in order to meet military 
exigencies.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter II of such chapter is amended by 
        striking out the item relating to section 9513 and inserting in 
        lieu thereof the following:

``9513. Use of military installations by Civil Reserve Air Fleet 
                            contractors.''.

SEC. 3033. REPEAL OF NAVY AUTHORITY REGARDING RESEARCH AND DEVELOPMENT, 
              PROCUREMENT, AND CONSTRUCTION OF GUIDED MISSILES.

    (a) Repeal of Obsolete Authority.--Section 7201 of title 10, United 
States Code, is repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 631 of such title is amended by striking out the item relating 
to section 7201.

SEC. 3034. EXCHANGE OF SCIENTIFIC PERSONNEL.

    (a) Exchange Authority.--Subchapter II of chapter 138 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2350j. Exchange of scientific personnel
    ``(a) International Exchange Agreements Authorized.--The Secretary 
of Defense is authorized to enter into agreements with the governments 
of allies of the United States and other friendly foreign countries for 
the exchange of military and civilian scientific personnel of the 
Department of Defense and military and civilian scientific personnel of 
the defense ministries of such foreign governments.
    ``(b) Assignment of Personnel.--Pursuant to an agreement entered 
into under subsection (a), personnel of the defense ministry of a 
foreign government may be assigned to positions in the Department of 
Defense, and personnel of the Department of Defense may be assigned to 
positions in the defense ministry of that foreign government. An 
agreement for the exchange of personnel engaged in research and 
development activities may provide for assignment of such personnel to 
positions in private industry that support the defense ministry of such 
foreign government. A specific position and the individual to be 
assigned to that position shall be acceptable to both governments.
    ``(c) Reciprocity of Personnel Qualifications Required.--Each 
government shall be required under an agreement authorized by 
subsection (a) to provide personnel having qualifications, training, 
and skills that are essentially equal to those of the personnel 
provided by the other government.
    ``(d) Payment of Personnel Costs.--Each government shall pay the 
salary, per diem, cost of living, travel, cost of language or other 
training, and other costs (except for cost of temporary duty directed 
by the host government and costs incident to the use of host government 
facilities in the performance of assigned duties) for its own personnel 
in accordance with the laws and regulations of such government that 
pertain to such matters.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter II of such chapter is amended by adding at the end the 
following new item:

``2350j. Exchange of scientific personnel.''.

SEC. 3035. REPEAL OF AUTHORITY FOR SECRETARY OF THE NAVY TO PROVIDE 
              TEMPORARY RELIEF FOR CONTRACTORS AND CONTRACTOR EMPLOYEES 
              FROM LOSSES CAUSED BY ENEMY ACTION.

    (a) Repeal.--Section 7213 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 631 of such title is amended by striking out the item relating 
to section 7213.

SEC. 3036. REPEAL OF AUTHORITY FOR SECRETARY OF THE NAVY TO SELL 
              DEGAUSSING EQUIPMENT.

    (a) Repeal.--Section 7230 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 631 of such title is amended by striking out the item relating 
to section 7230.

SEC. 3037. REPEAL OF AUTHORITY FOR ALTERNATIVE USE OF APPROPRIATIONS 
              FOR CONSTRUCTION OR CONVERSION OF VESSELS.

    (a) Repeal.--Section 7296 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7296.

SEC. 3038. REPEAL OF AUTHORITY FOR CONVERSION OF COMBATANT AND 
              AUXILIARY NAVAL VESSELS.

    (a) Repeal.--Section 7298 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7298.

SEC. 3039. CONSTRUCTION OF COMBATANT AND ESCORT VESSELS AND ASSIGNMENT 
              OF VESSEL PROJECTS.

    (a) Repeal of Obsolete and Internally Inconsistent Provisions.--
Section 7299a of title 10, United States Code, is amended--
            (1) by striking out subsection (a); and
            (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively.
    (b) Conforming Amendment.--Subsection (b) of such section, as 
redesignated by subsection (a)(2), is amended in paragraph (2) by 
striking out ``subsection (a) or''.

SEC. 3040. REPEAL OF REQUIREMENT FOR ESTIMATES IN CONNECTION WITH BIDS 
              ON CONSTRUCTION OF NAVAL VESSELS.

    (a) Repeal.--Section 7301 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7301.

SEC. 3041. REPEAL OF REQUIREMENT FOR CONSTRUCTION OF VESSELS ON PACIFIC 
              COAST.

    (a) Repeal.--Section 7302 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7302.

SEC. 3042. FITNESS OF NAVAL VESSELS: EXAMINATION; STRIKING UNFIT 
              VESSELS; DISPOSAL.

    (a) Consolidation and Revision of Authority.--
            (1) Authority.--Section 7304 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 7304. Fitness of vessels: examination; striking from Naval 
              Vessel Register; disposal
    ``(a) Triennial Examination of Vessels Required.--The Secretary of 
the Navy shall designate boards of naval officers to examine all naval 
vessels, including unfinished vessels. Each vessel shall be examined at 
least once every three years if practicable.
    ``(b) Board Recommendations.--A board designated under subsection 
(a) shall recommend to the Secretary of the Navy in writing which 
vessels, if any, should be stricken from the Naval Vessel Register. In 
making such recommendations, the board shall consider whether a vessel 
is unfit for service or whether an unfinished vessel cannot be finished 
without disproportionate expense.
    ``(c) Action of the Secretary.--If the Secretary concurs with a 
board's recommendation that a vessel be stricken from the Naval Vessel 
Register, the Secretary shall strike the name of that vessel from the 
Naval Vessel Register.
    ``(d) Appraisal of Stricken Vessel.--The Secretary of the Navy 
shall appraise each vessel stricken from the Naval Vessel Register.
    ``(e) Sale of Stricken Vessel.--(1) When the Secretary determines 
that it is in the national interest, the Secretary may sell a vessel 
stricken from the Naval Vessel Register.
    ``(2) A vessel stricken from the Naval Vessel Register and not 
subject to disposition under any other law, may be sold at public sale 
to the highest acceptable bidder, regardless of the vessel's appraised 
value, after being advertised for sale for a period of not less than 30 
days.
    ``(3) If the Secretary determines that the bid prices received 
after advertising are not reasonable and that readvertising will serve 
no useful purpose, the vessel may be sold by negotiation to the highest 
acceptable offeror, but only if--
            ``(A) each responsible bidder has been notified of the 
        intent to negotiate a sale of the vessel and has been given a 
        reasonable opportunity to negotiate with the Secretary for the 
        purchase of that vessel; and
            ``(B) the negotiated price--
                    ``(i) is higher than the highest rejected price of 
                any responsible bidder; or
                    ``(ii) is reasonable and is in the national 
                interest.
    ``(f) Other Transfers.--(1) The Secretary of the Navy is authorized 
to transfer, by gift or otherwise, any vessel stricken from the Naval 
Vessel Register or any captured vessel to--
            ``(A) any State, Commonwealth, or possession of the United 
        States, or to any municipal corporation or political 
        subdivision thereof;
            ``(B) the District of Columbia; or
            ``(C) any not-for-profit or nonprofit entity.
    ``(2) A transfer under paragraph (1) shall be made at no cost to 
the United States and may not be made unless the transferee agrees to 
maintain the vessel in a condition satisfactory to the Secretary of the 
Navy.
    ``(g) Use for Experimental Purposes.--The Secretary of the Navy is 
authorized to use for experimental purposes any vessel stricken from 
the Naval Vessel Register. A vessel so used shall first be stripped to 
the maximum extent practicable. The proceeds received from stripping 
the vessel shall be credited to appropriations available for the 
procurement of the scrapping services needed for stripping of that 
vessel. Excess receipts shall be deposited into the general fund of the 
Treasury.
    ``(h) Inapplicability of Other Law.--The provisions of title II of 
the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
481 et seq.) do not apply to the disposition of a naval vessel under 
this section.
    ``(i) Limitation.--Notwithstanding any other provision of law, no 
battleship, aircraft carrier, cruiser, destroyer, or submarine of the 
Navy may be sold, transferred, or otherwise disposed of, unless the 
Chief of Naval Operations certifies that it is not essential to the 
defense of the United States.''.
            (2) Clerical amendment.--The item relating to such section 
        in the table of sections at the beginning of chapter 633 of 
        such title is amended to read as follows:

``7304. Fitness of vessels: examination; striking from Naval Vessel 
                            Register; disposal.''.
    (b) Repeal of Superseded Provisions.--
            (1) Repeal.--Sections 7305, 7306, 7307, and 7308 of title 
        10, United States Code, are repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 633 of such title is amended by striking 
        out the items relating to such sections.

SEC. 3043. REPEAL OF POLICY ON CONSTRUCTING COMBATANT VESSELS.

    (a) Repeal.--Section 7310 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking out the item relating 
to section 7310.

SEC. 3044. NAVAL SALVAGE FACILITIES.

    (a) Consolidation of Authority.--Chapter 637 of title 10, United 
States Code, is amended--
            (1) in section 7361--
                    (A) in subsection (a), by inserting ``Authority To 
                Provide Facilities by Contract or Otherwise.--'' after 
                ``(a)'';
                    (B) in subsection (b), by inserting ``Contracts 
                Affecting the Department of Transportation.--'' after 
                ``(b)''; and
                    (C) in subsection (c)--
                            (i) by inserting ``Limitation on Term 
                        Contracts.--'' after ``(c)''; and
                            (ii) by striking out ``under this section'' 
                        and inserting in lieu thereof ``under 
                        subsection (a)'';
            (2) by designating the text of section 7362 as subsection 
        (d) and transferring such text, as so designated, to the end of 
        section 7361 of title 10, United States Code;
            (3) in subsection (d) of section 7361 of such title, as so 
        designated and transferred, by inserting before ``The 
        Secretary'' the following: ``Commercial Use of Naval Vessels 
        and Equipment.--'';
            (4) by designating the text of section 7363 as subsection 
        (e) and transferring such text, as so designated, to the end of 
        section 7361 of title 10, United States Code;
            (5) in subsection (e) of section 7361 of such title, as so 
        designated and transferred, by inserting before ``Before any 
        salvage vessel'' the following: ``Conditions for Transfer of 
        Equipment.--'';
            (6) by designating the text of section 7365 as subsection 
        (f) and transferring such text, as so designated, to the end of 
        section 7361 of title 10, United States Code;
            (7) in subsection (f) of section 7361 of such title, as so 
        designated and transferred, by inserting before ``The 
        Secretary'' the following: ``Settlement of Claims.--'';
            (8) by designating the text of section 7366 as subsection 
        (g) and transferring such text, as so designated, to the end of 
        section 7361 of title 10, United States Code;
            (9) in subsection (g) of section 7361 of such title, as so 
        designated and transferred--
                    (A) by inserting before ``Not more than'' the 
                following: ``Limitation on Appropriations.--''; and
                    (B) by striking out ``this chapter'' and inserting 
                in lieu thereof ``this section'';
            (10) by designating the text of section 7367 as subsection 
        (h) and transferring such text, as so designated, to the end of 
        section 7361 of title 10, United States Code;
            (11) in subsection (h) of section 7361 of such title, as so 
        designated and transferred--
                    (A) by inserting before ``Money received'' the 
                following: ``Disposition of Receipts.--''; and
                    (B) by striking out ``this chapter'' in the first 
                sentence and inserting in lieu thereof ``this 
                section'';
            (12) by striking out the section headings for sections 
        7362, 7363, 7365, 7366, and 7367;
            (13) by striking out the heading for section 7361 and 
        inserting in lieu thereof the following:
``Sec. 7361. Navy support for salvage operations'';
        and
            (14) in the table of sections at the beginning of such 
        chapter--
                    (A) by striking out the item relating to section 
                7361 and inserting in lieu thereof the following:

``7361. Navy support for salvage operations.'';
                and
                    (B) by striking out the items relating to sections 
                7362, 7363, 7365, 7366, and 7367.

 Subtitle D--Department of Defense Commercial and Industrial Activities

SEC. 3051. FACTORIES AND ARSENALS: MANUFACTURE AT.

    (a) Consolidation and Revision of Authority.--
            (1) Authority.--Subchapter V of chapter 148 of title 10, 
        United States Code, as amended by section 3025(a)(1), is 
        further amended by adding at the end the following:
``Sec. 2541. Factories and arsenals: manufacture at
    ``(a) The Secretary of Defense or the Secretary of a military 
department may have supplies needed for the Department of Defense or 
such military department, as the case may be, made in factories or 
arsenals owned by the United States.
    ``(b) The Secretary of Defense or the Secretary of the military 
department concerned may abolish any United States arsenal that such 
Secretary considers unnecessary.''.
            (2) Technical amendment.--The table of sections at the 
        beginning of subchapter V of such chapter, as amended by 
        section 3025(a)(2), is further amended by adding at the end the 
        following new item:

``2541. Factories and arsenals: manufacture at.''.
    (b) Repeal of Superseded Authority.--
            (1) Army authority.--
                    (A) Repeal.--Section 4532 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 433 of such title is amended 
                by striking out the item relating to section 4532.
            (2) Air force authority.--
                    (A) Repeal.--Section 9532 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 933 of such title is amended 
                by striking out the item relating to section 9532.

SEC. 3052. ACCOUNTING REQUIREMENT FOR CONTRACTED ADVISORY AND 
              ASSISTANCE SERVICES.

    (a) Funding To Be Identified in Budget.--Section 1105 of title 31, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(g)(1) The Director of the Office of Management and Budget shall 
establish the funding for consulting services for each department and 
agency as a separate object class in each budget annually submitted to 
the Congress under this section.
    ``(2) For purposes of this subsection, consulting services 
include--
            ``(A) management and professional support services;
            ``(B) studies, analyses, and evaluations;
            ``(C) engineering and technical services (excluding routine 
        engineering services such as automated data processing and 
        architect and engineering contracts); and
            ``(D) research and development.''.
    (b) Repeal of Source Law.--Section 512 of Public Law 102-394 (106 
Stat. 1826) is repealed.
    (c) Repeal of Superseded Provision.--
            (1) DoD specific law.--Section 2212 of title 10, United 
        States Code, is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 131 of such title is amended by striking 
        out the item relating to section 2212.

               Subtitle E--Fuel- and Energy-Related Laws

SEC. 3061. LIQUID FUELS AND NATURAL GAS: CONTRACTS FOR STORAGE, 
              HANDLING, OR DISTRIBUTION.

    (a) Revision of Authority.--Section 2388 of title 10, United States 
Code, is amended--
            (1) by striking out subsections (a) and (b) and inserting 
        in lieu thereof the following:
    ``(a) Authority To Contract.--The Secretary of Defense and the 
Secretary of a military department may each contract for storage 
facilities for, or the storage, handling, or distribution of, liquid 
fuels and natural gas.
    ``(b) Period of Contract.--The period of a contract entered into 
under subsection (a) may not exceed 5 years. However, the contract may 
provide options for the Secretary to renew the contract for additional 
periods of not more than 5 years each, but not for more than a total of 
20 years.''; and
            (2) in subsection (c), by inserting ``Option To Purchase 
        Facility.--'' after ``(c)''.
    (b) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 2388. Liquid fuels and natural gas: contracts for storage, 
              handling, or distribution''.
            (2) Table of sections.--The item relating to such section 
        in the table of sections at the beginning of chapter 141 of 
        title 10, United States Code, is amended to read as follows:

``2388. Liquid fuels and natural gas: contracts for storage, handling, 
                            or distribution.''.

SEC. 3062. ACQUISITION OF PETROLEUM AND NATURAL GAS: AUTHORITY TO WAIVE 
              PROCEDURES.

    (a) Acquisition, Sale, and Exchange of Natural Gas.--Section 2404 
of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter above paragraph (1), by inserting 
                ``or natural gas'' after ``petroleum'';
                    (B) in paragraph (1)--
                            (i) by inserting ``or natural gas market 
                        conditions, as the case may be,'' after 
                        ``petroleum market conditions''; and
                            (ii) by inserting ``or acquisition of 
                        natural gas, respectively,'' after 
                        ``acquisition of petroleum''; and
                    (C) in paragraph (2), by inserting ``or natural 
                gas, as the case may be,'' after ``petroleum''; and
            (2) in subsection (b), by inserting ``or natural gas'' in 
        the second sentence after ``petroleum''.
    (b) Expansion of Exchange Authority.--Subsection (c) of such 
section is amended to read as follows:
    ``(c) Exchange Authority.--The Secretary of Defense may acquire 
petroleum, petroleum-related services, natural gas, or natural gas-
related services by exchange of petroleum, petroleum-related services, 
natural gas, or natural gas-related services.''.
    (c) Sale of Petroleum and Natural Gas.--Such section is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Authority To Sell.--The Secretary of Defense may sell 
petroleum or natural gas of the Department of Defense if the Secretary 
determines that the sale would be in the public interest. The proceeds 
of such a sale shall be credited to appropriations of the Department of 
Defense for the fiscal year in which received and shall be available 
for such fiscal year for the acquisition of petroleum, petroleum-
related services, natural gas, or natural gas-related services.''.
    (d) Technical and Clerical Amendments.--
            (1) Subsection captions.--Section 2404 of title 10, United 
        States Code, is amended--
                    (A) in subsection (a), by inserting ``Waiver 
                Authority.--'' after ``(a)'';
                    (B) in subsection (b), by inserting ``Scope of 
                Waiver.--'' after ``(b)''; and
                    (C) in subsection (e), as redesignated by 
                subsection (c)(1), by inserting ``Petroleum Defined.--
                '' after ``(e)''.
            (2) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 2404. Acquisition of petroleum and natural gas: authority to 
              waive contract procedures; acquisition by exchange; sales 
              authority''.
            (3) Table of sections.--The item relating to such section 
        in the table of sections at the beginning of chapter 141 of 
        title 10, United States Code, is amended to read as follows:

``2404. Acquisition of petroleum and natural gas: authority to waive 
                            contract procedures; acquisition by 
                            exchange; sales authority.''.

                      Subtitle F--Fiscal Statutes

SEC. 3071. DISBURSEMENT OF FUNDS OF MILITARY DEPARTMENT TO COVER 
              OBLIGATIONS OF ANOTHER AGENCY OF DEPARTMENT OF DEFENSE.

    Subsection (c)(2) of section 3321 of title 31, United States Code, 
is amended by striking out ``military departments of the'' and 
inserting in lieu thereof ``The''.

                       Subtitle G--Miscellaneous

SEC. 3081. OBLIGATION OF FUNDS: LIMITATION.

    Section 2202 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2202. Obligation of funds: limitation
    ``The Secretary of Defense shall prescribe regulations governing 
the performance within the Department of Defense of the procurement, 
production, warehousing, and supply distribution functions, and related 
functions, of the Department of Defense.''.

SEC. 3082. REPEAL OF PROVISIONS FOR THE ENCOURAGEMENT OF AVIATION.

    (a) Repeal.--Chapter 135 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The tables of chapters at the beginning of 
subtitle A of such title and the beginning of part IV of such subtitle 
are amended by striking out the item relating to chapter 135.

SEC. 3083. REPEAL OF REQUIREMENTS REGARDING PRODUCT EVALUATION 
              ACTIVITIES.

    (a) Repeal.--Section 2369 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking out the item related 
to section 2369.

SEC. 3084. REPEAL OF PRICE ADJUSTMENT AUTHORITY AND PURCHASE AUTHORITY 
              RELATING TO THE PROCUREMENT OF MILK.

    (a) Repeal.--Section 2389 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by striking out the item related 
to section 2389.

SEC. 3085. CODIFICATION AND REVISION OF LIMITATION ON LEASE OF VESSELS, 
              AIRCRAFT, AND VEHICLES.

    (a) Limitation.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2410e. Lease of vessels, aircraft, and vehicles
    ``The head of an agency named in paragraph (1), (2), (3), or (4) of 
section 2303(a) of this title may not enter into any contract with a 
term of 18 months or more, or extend or renew any contract for a term 
of 18 months or more, for any vessel, aircraft, or vehicle, through a 
lease, charter, or similar agreement without previously having 
considered all costs of such lease (including estimated termination 
liability) and determined in writing that such lease is in the best 
interest of the Government.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following:

``2410e. Leases of vessels, aircraft, and vehicles.''.
    (b) Repeal of Superseded Provision.--Section 9081 of Public Law 
101-165 (103 Stat. 1147; 10 U.S.C. 2401 note) is repealed.

  TITLE IV--SIMPLIFIED ACQUISITION THRESHOLD AND SOCIOECONOMIC, SMALL 
                    BUSINESS, AND MISCELLANEOUS LAWS

              Subtitle A--Simplified Acquisition Threshold

                   PART I--ESTABLISHMENT OF THRESHOLD

SEC. 4001. SIMPLIFIED ACQUISITION THRESHOLD.

    (a) Term Defined.--Section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11)) is amended to read as 
follows:
            ``(11) The term `simplified acquisition threshold' means 
        $100,000.''.
    (b) Interim Reporting Rule.--Until October 1, 1996, contracting 
activities shall continue to report procurement awards with a dollar 
value of at least $25,000, but less than $100,000, in conformity with 
the procedures for the reporting of a contract award in excess of 
$25,000 that were in effect on October 1, 1992.

                 PART II--SIMPLIFICATION OF PROCEDURES

SEC. 4011. SIMPLIFIED ACQUISITION PROCEDURES.

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

                  ``simplified acquisition procedures

    ``Sec. 29. (a) In order to promote efficiency and economy in 
contracting and to avoid unnecessary burdens for agencies and 
contractors, the Federal Acquisition Regulation shall provide for 
special simplified procedures for contracts for acquisition of property 
and services that are not in excess of the simplified acquisition 
threshold.
    ``(b) A proposed purchase or contract for an amount above the 
simplified acquisition threshold may not be divided into several 
purchases or contracts for lesser amounts in order to use the 
simplified acquisition procedures required by subsection (a).
    ``(c) In using simplified acquisition procedures, the head of an 
executive agency shall promote competition to the maximum extent 
practicable.''.

SEC. 4012. SMALL BUSINESS RESERVATION.

    Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) is 
amended to read as follows:
    ``(j)(1) Each contract for the procurement of goods and services 
that has an anticipated value not in excess of the simplified 
acquisition threshold and that is subject to simplified acquisition 
procedures prescribed pursuant to section 29 of the Office of Federal 
Procurement Policy Act shall be reserved exclusively for small business 
concerns unless the contracting officer is unable to obtain offers from 
two or more small business concerns that are competitive with market 
prices and are competitive with regard to the quality and delivery of 
the goods or services being procured.
    ``(2) In carrying out paragraph (1), a contracting officer shall 
consider a responsive offer timely received from an eligible small 
business offeror.
    ``(3) Nothing in paragraph (1) shall be construed as precluding an 
award of a contract with a value not in excess of the simplified 
acquisition threshold under the authority of section 8(a) of this Act, 
section 2323 of title 10, United States Code, or section 712 of the 
Business Opportunity Development Reform Act of 1988 (Public Law 100-
656; 15 U.S.C. 644 note).
    ``(4) In utilizing procedures referred to in paragraph (1), 
contracting officers shall, wherever circumstances permit, provide for 
the use of fast payment terms and disbursement of payment through 
electronic fund transfer.''.

SEC. 4013. PROCUREMENT NOTICE.

    (a) Continuation of Existing Notice Thresholds.--Subsection (a) of 
section 18 of the Office of Federal Procurement Policy Act (41 U.S.C. 
416) is amended--
            (1) in paragraph (1), by striking out ``the small purchase 
        threshold'' each place it appears and inserting in lieu thereof 
        ``$25,000''; and
            (2) in paragraph (3)(B), by inserting after ``(B)'' the 
        following: ``in the case of a contract or order expected to 
        exceed the simplified acquisition threshold,''.
    (b) Content of Notice.--Subsection (b) of such section is amended--
            (1) by striking out ``and'' at the end of paragraph (4);
            (2) by striking out the period at the end of paragraph (5) 
        and inserting in lieu thereof a semicolon; and
            (3) by adding at the end the following:
            ``(6) in the case of a contract in an amount estimated to 
        exceed the $25,000 but not to exceed the simplified acquisition 
        threshold--
                    ``(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.''.
    (c) Notice Under the Small Business Act.--
            (1) Continuation of existing notice thresholds.--Subsection 
        (e) of section 8 of the Small Business Act (15 U.S.C. 637) is 
        amended--
                    (A) in paragraph (1), by striking out ``the small 
                purchase threshold'' each place it appears and 
                inserting in lieu thereof ``$25,000''; and
                    (B) in paragraph (3)(B), by inserting after ``(B)'' 
                the following: ``in the case of a contract or order 
                estimated to exceed the simplified acquisition 
                threshold,''.
            (2) Content of notice.--Subsection (f) of such section is 
        amended--
                    (A) by striking out ``and'' at the end of paragraph 
                (4);
                    (B) by striking out the period at the end of 
                paragraph (5) and inserting in lieu thereof a 
                semicolon; and
                    (C) by adding at the end the following:
            ``(6) in the case of a contract in an amount estimated to 
        exceed the $25,000 but not to exceed the simplified acquisition 
        threshold--
                    ``(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.''.

  PART III--INAPPLICABILITY OF LAWS TO ACQUISITIONS NOT IN EXCESS OF 
                    SIMPLIFIED ACQUISITION THRESHOLD

                          Subpart A--Generally

SEC. 4021. INAPPLICABILITY OF FUTURE ENACTED PROCUREMENT LAWS TO 
              CONTRACTS NOT EXCEEDING THE SIMPLIFIED ACQUISITION 
              THRESHOLD.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 4011, is further amended by adding at the 
end the following new section:

``inapplicability of certain laws to contracts not exceeding simplified 
                         acquisition threshold

    ``Sec. 30. (a) In General.--The applicability of a provision of law 
described in subsection (b) to contracts not in excess of the 
simplified acquisition threshold may be waived on a class basis in the 
Federal Acquisition Regulation. Such a waiver shall not apply to a 
provision of law that expressly refers to this section and prohibits 
the waiver of that provision of law.
    ``(b) Referenced Law.--A provision of law referred to in subsection 
(a) is any provision of law enacted after the date of the enactment of 
the Federal Acquisition Streamlining Act of 1993 that, as determined by 
the Administrator for Federal Procurement Policy, sets forth policies, 
procedures, requirements, or restrictions for the procurement of 
property or services by the Federal Government.''.

                 Subpart B--Armed Services Acquisitions

SEC. 4031. INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE REGARDING 
              CONTINGENT FEES.

    Section 2306(b) of title 10, United States Code, is amended by 
adding at the end the following: ``This subsection does not apply to a 
contract that is not in excess of the simplified acquisition 
threshold.''.

SEC. 4032. INAPPLICABILITY OF PROHIBITION ON LIMITING SUBCONTRACTOR 
              DIRECT SALES TO THE UNITED STATES.

    Section 2402 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) This section does not apply to a contract that is not in 
excess of the simplified acquisition threshold (as defined in section 
4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(11))).''.

SEC. 4033. INAPPLICABILITY OF AUTHORITY TO EXAMINE BOOKS AND RECORDS OF 
              CONTRACTORS.

    Section 2313 of title 10, United States Code, as amended by section 
2201, is further amended by adding at the end of subsection (e) the 
following:
            ``(2) A contract that is not in excess of the simplified 
        acquisition threshold.''.

SEC. 4034. INAPPLICABILITY OF REQUIREMENT TO IDENTIFY SUPPLIERS AND 
              SOURCES OF SUPPLIES.

    Section 2384(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) The regulations prescribed pursuant to paragraph (1) do not 
apply to a contract that does not exceed the simplified acquisition 
threshold (as defined in section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11))).''.

SEC. 4035. INAPPLICABILITY OF PROHIBITION AGAINST DOING BUSINESS WITH 
              CERTAIN OFFERORS OR CONTRACTORS.

    Section 2393(d) of title 10, United States Code, is amended in the 
second sentence by striking out ``above'' and all that follows and 
inserting in lieu thereof ``in excess of the simplified acquisition 
threshold (as defined in section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11))).''.

SEC. 4036. INAPPLICABILITY OF PREFERENCE FOR USE OF UNITED STATES 
              VESSELS FOR TRANSPORTING SUPPLIES OF THE ARMED FORCES.

    Section 2631 of title 10, United States Code, is amended by adding 
at the end the following: ``The first sentence does not apply to a 
contract for the transportation of those supplies by sea if the 
contract does not exceed the simplified acquisition threshold (as 
defined in section 4(11) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(11))).''.

                Subpart C--Civilian Agency Acquisitions

SEC. 4041. INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE REGARDING 
              CONTINGENT FEES.

    Section 304(a) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254(a)) is amended by adding at the end the 
following: ``The preceding sentence does not apply to a contract that 
is not in excess of the simplified acquisition threshold.''.

SEC. 4042. INAPPLICABILITY OF PROHIBITION ON LIMITING SUBCONTRACTOR 
              DIRECT SALES TO THE UNITED STATES.

    Section 303G of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253g) is amended by adding at the end the 
following new subsection:
    ``(c) This section does not apply to a contract that is not in 
excess of the simplified acquisition threshold.''.

SEC. 4043. INAPPLICABILITY OF AUTHORITY TO EXAMINE BOOKS AND RECORDS OF 
              CONTRACTORS.

    Section 304B of the Federal Property and Administrative Services 
Act of 1949, as added by section 2251(a), is amended by adding at the 
end of subsection (e) the following:
            ``(2) A contract that is not in excess of the simplified 
        acquisition threshold.''.

                   Subpart D--Acquisitions Generally

SEC. 4051. INAPPLICABILITY OF LIMITATION ON USE OF FUNDS TO INFLUENCE 
              CERTAIN FEDERAL ACTIONS.

    Section 1352(e)(2)(B) of title 31, United States Code, is amended 
by striking out ``$100,000'' and inserting in lieu thereof ``the 
simplified acquisition threshold (as defined in section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)))''.

SEC. 4052. INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE RELATING 
              TO KICKBACKS.

    Section 7 of the Anti-Kickback Act of 1986 (41 U.S.C. 57) is 
amended by adding at the end the following new subsection:
    ``(d) Subsections (a) and (b) do not apply to a prime contract that 
is not in excess of the simplified acquisition threshold (as defined in 
section 4(11) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(11))).''.

SEC. 4053. INAPPLICABILITY OF THE MILLER ACT TO CONTRACTS BELOW THE 
              SIMPLIFIED ACQUISITION THRESHOLD.

    (a) In General.--
            (1) Contracts not exceeding simplified acquisition 
        threshold.--The Act of August 24, 1935 (40 U.S.C. 270a et 
        seq.), commonly referred to as the ``Miller Act'', is amended 
        by adding at the end the following new section:
    ``Sec. 5. This Act does not apply to a contract in an amount that 
is not in excess of the simplified acquisition threshold (as defined in 
section 4(11) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(11))).''.
            (2) Conforming amendment.--Subsection (a) of the first 
        section of such Act is amended by striking out ``, exceeding 
        $25,000 in amount,''.
    (b) Alternative Payment Protections.--
            (1) Regulations required.--The Federal Acquisition 
        Regulation shall provide alternatives to payment bonds as 
        payment protections for suppliers of labor and materials on 
        contracts referred to in paragraph (2).
            (2) Covered contracts.--The protections required by 
        paragraph (1) shall apply with respect to contracts referred to 
        in subsection (a) of the first section of the Miller Act that 
        are in excess of $25,000 but not in excess of the simplified 
        acquisition threshold (as defined in section 4(11) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(11))).
            (3) Miller act reference.--The Miller Act referred to in 
        paragraph (2) means the Act of August 24, 1935 (40 U.S.C. 270a 
        et seq.), commonly referred to as the ``Miller Act''.

SEC. 4054. INAPPLICABILITY OF CONTRACT WORK HOURS AND SAFETY STANDARDS 
              ACT.

    (a) In General.--Section 103 of the Contract Work Hours and Safety 
Standards Act (40 U.S.C. 329) is amended by adding at the end the 
following new subsection:
    ``(c) This title does not apply to a contract in an amount that is 
not in excess of the simplified acquisition threshold (as defined in 
section 4(11) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(11))).''.
    (b) Conforming Amendment.--Section 107(a) of such Act (40 U.S.C. 
333(a)) is amended by inserting after ``It shall be a condition of each 
contract'' the following: ``(other than a contract referred to in 
section 103(c))''.

SEC. 4055. INAPPLICABILITY OF THE DRUG-FREE WORKPLACE ACT OF 1988.

    Section 5152(a)(1) of the Drug-Free Workplace Act of 1988 (subtitle 
D of title V of the Anti-Drug Abuse Act of 1988; Public Law 100-690; 41 
U.S.C. 701(a)(1)) is amended by striking out ``of $25,000 or more from 
any Federal agency'' and inserting in lieu thereof ``in excess of the 
simplified acquisition threshold (as defined in section 4(11) of such 
Act (41 U.S.C. 403(11))) by any Federal agency''.

SEC. 4056. INAPPLICABILITY OF A REQUIREMENT IN THE MERCHANT MARINE ACT, 
              1936, TO SHIP ON AMERICAN-FLAG COMMERCIAL VESSELS.

    Section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) 
is amended by adding at the end the following new paragraph:
    ``(3) Paragraph (1) does not apply to a contract for transportation 
on ocean vessels in an amount that is not in excess of the simplified 
acquisition threshold (as defined in section 4(11) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(11))). The gross tonnage 
transported under such a contract may not be counted for purposes of 
determining the minimum gross tonnage required to be transported on 
privately owned United States-flag commercial vessels or for purposes 
of satisfying such requirement.''.

SEC. 4057. INAPPLICABILITY OF CERTAIN PROCUREMENT INTEGRITY 
              REQUIREMENTS.

    (a) Certification Requirement.--Subsection (e)(7)(A) of section 18 
of the Office of Federal Procurement Policy Act (41 U.S.C. 423) is 
amended by striking out ``$100,000'' and inserting in lieu thereof 
``the simplified acquisition threshold''.
    (b) Contract Clause Requirement.--Subsection (g)(1) of such section 
is amended by inserting after ``awarded by a Federal agency'' the 
following: ``(other than a contract in an amount that is not in excess 
of the simplified acquisition threshold)''.

                     PART IV--CONFORMING AMENDMENTS

SEC. 4071. ARMED SERVICES ACQUISITIONS.

    (a) Simplified Acquisition Procedures.--Section 2304(g) of title 
10, United States Code, is amended--
            (1) in paragraph (1), by striking out ``small purchases of 
        property and services'' and inserting in lieu thereof 
        ``purchases of property and services not in excess of the 
        simplified acquisition threshold'';
            (2) by striking out paragraph (2);
            (3) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively;
            (4) in paragraph (2), as so redesignated--
                    (A) by striking out ``small purchase threshold'' 
                and inserting in lieu thereof ``simplified acquisition 
                threshold''; and
                    (B) by striking out ``small purchase procedures'' 
                and inserting in lieu thereof ``simplified 
                procedures''; and
            (5) in paragraph (3), as redesignated by paragraph (3), by 
        striking out ``small purchase procedures'' and inserting in 
        lieu thereof ``simplified procedures''.
    (b) Solicitation Content Requirement.--Section 2305(a)(2) of title 
10, United States Code, is amended by striking out ``small purchases)'' 
in the matter above subparagraph (A) and inserting in lieu thereof 
``purchases not in excess of the simplified acquisition threshold)''.
    (c) Cost Type Contracts.--Section 2306(e)(2)(A) of title 10, United 
States Code, is amended by striking out ``small purchase threshold'' 
and inserting in lieu thereof ``simplified acquisition threshold''.

SEC. 4072. CIVILIAN AGENCY ACQUISITIONS.

    (a) Simplified Acquisition Procedures.--Section 303(g) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253(g)) is amended--
            (1) in paragraph (1), by striking out ``small purchases of 
        property and services'' and inserting in lieu thereof 
        ``purchases of property and services not in excess of the 
        simplified acquisition threshold'';
            (2) by striking out paragraph (2);
            (3) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively;
            (4) in paragraph (2), as so redesignated--
                    (A) by striking out ``small purchase threshold'' 
                and inserting in lieu thereof ``simplified acquisition 
                threshold''; and
                    (B) by striking out ``small purchase procedures'' 
                and inserting in lieu thereof ``simplified 
                procedures'';
            (5) in paragraph (3), as redesignated by paragraph (3), by 
        striking out ``small purchase procedures'' and inserting in 
        lieu thereof ``simplified procedures''; and
            (6) in paragraph (5), as redesignated by paragraph (3), by 
        striking out ``the term `small purchase threshold' has the 
        meaning'' and inserting in lieu thereof ``the term `simplified 
        acquisition threshold' has the meaning''.
    (b) Solicitation Content Requirement.--Section 303A(b) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253a(b)) is amended by striking out ``small purchases)'' in the matter 
above paragraph (1) and inserting in lieu thereof ``purchases not in 
excess of the simplified acquisition threshold)''.
    (c) Cost Type Contracts.--Section 304(b) of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 254(b)) is amended 
in the third sentence by striking out ``either $25,000'' and inserting 
in lieu thereof ``either the simplified acquisition threshold''.

SEC. 4073. OFFICE OF FEDERAL PROCUREMENT POLICY ACT.

    Section 19(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 417(a)) is amended by striking out ``procurements, other than 
small purchases,'' and inserting in lieu thereof ``procurements in 
excess of the simplified acquisition threshold''.

SEC. 4074. SMALL BUSINESS ACT.

    (a) Definition.--Section 3(m) of the Small Business Act (15 U.S.C. 
632(m)) is amended by striking out ```small purchase threshold''' and 
inserting in lieu thereof ```simplified acquisition threshold'''.
    (b) Use of Simplified Acquisition Threshold Term.--Section 
8(d)(2)(A) of the Small Business Act (15 U.S.C. 637(d)(2)(A)) is 
amended by striking out ``small purchase threshold'' and inserting in 
lieu thereof ``simplified acquisition threshold''.

                    PART V--REVISION OF REGULATIONS

SEC. 4081. REVISION REQUIRED.

    (a) Federal Acquisition Regulation.--The Federal Acquisition 
Regulatory Council established by section 25(a) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 421(a)) shall review the 
Federal Acquisition Regulation to identify regulations that are 
applicable to acquisitions in excess of a specified amount that is less 
than $100,000. The Council shall amend the regulations so identified as 
necessary to provide that such regulations do not apply to acquisitions 
that are not in excess of the simplified acquisition threshold. The 
preceding sentence does not apply in the case of a regulation for which 
such an amendment would not be in the national interest, as determined 
by the Council.
    (b) Supplemental Regulations.--The head of each Federal agency that 
has issued regulations, policies, or procedures referred to in 
subsection (c)(2) of the Office of Federal Procurement Policy Act (41 
U.S.C. 421(c)(2)) shall identify any such regulations, policies, or 
procedures that are applicable to acquisitions in excess of a specified 
amount that is less than $100,000. The agency head shall amend the 
regulations so identified as necessary to provide that such 
regulations, policies, and procedures do not apply to acquisitions that 
are not in excess of the simplified acquisition threshold. The 
preceding sentence does not apply in the case of a regulation, policy, 
or procedure for which such an amendment would not be in the national 
interest, as determined by the agency head.
    (c) Completion of Actions.--All actions under this section shall be 
completed not later than 180 days after the date of the enactment of 
this Act.
    (d) Definitions.--In this section:
            (1) The term ``simplified acquisition threshold'' has the 
        meaning given such term in section 4(11) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(11)), as amended 
        by section 4001.
            (2) The term ``Federal agency'' has the meaning given such 
        term in section 3(b) of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 472(b)).

           Subtitle B--Socioeconomic and Small Business Laws

SEC. 4101. ARMED SERVICES ACQUISITIONS.

    (a) Inapplicability of Certain Labor Laws to Construction of Naval 
Vessels.--Section 7299 of title 10, United States Code, is amended to 
read as follows: ``No contract for the construction, alteration, 
furnishing, or equipping of a naval vessel shall be subject to the Act 
of March 3, 1931 (40 U.S.C. 276a(a)), commonly referred to as the 
`Davis-Bacon Act', or to the Service Contract Act of 1965 (41 U.S.C. 
351 et seq.), unless the President determines that such requirement is 
in the interest of national defense.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 7299. Contracts: applicability of certain labor laws''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 633 of title 10, United States Code, is 
amended to read as follows:

``7299. Contracts: applicability of certain labor laws.''.

SEC. 4102. ACQUISITIONS GENERALLY.

    (a) Repeal of Executed Reporting Requirement.--Section 306 of the 
Trade Agreements Act of 1979 (19 U.S.C. 2516) is repealed.
    (b) Walsh-Healey Act.--
            (1) Repeal other than for certain definitional purposes.--
        The Act of June 30, 1936 (41 U.S.C. 35 et seq.), commonly 
        referred to as the ``Walsh-Healey Act'', is amended to read as 
        follows:
    ``Section 1. (a) The Secretary of Labor may prescribe in 
regulations the standards for determining whether a contractor is a 
manufacturer of or a regular dealer in materials, supplies, articles, 
or equipment to be manufactured or used in the performance of a 
contract entered into by any executive department, independent 
establishment, or other agency or instrumentality of the United States, 
or by the District of Columbia, or by any corporation all the stock of 
which is beneficially owned by the United States, for the manufacture 
or furnishing of materials, supplies, articles, and equipment.
    ``(b) Any interested person shall have the right of judicial review 
of any legal question regarding the interpretation of the terms 
`regular dealer' and `manufacturer', as defined pursuant to subsection 
(a).''
            (2) Conforming amendment.--Section 2304(h) of title 10, 
        United States Code, is amended to read as follows:
    ``(h) For the purposes of the Act entitled `An Act relating to the 
rate of wages for laborers and mechanics employed on public buildings 
of the United States and the District of Columbia by contractors and 
subcontractors, and for other purposes', approved March 3, 1931 
(commonly referred to as the `Davis-Bacon Act') (40 U.S.C. 276a et 
seq.), purchases or contracts awarded after using procedures other than 
sealed-bid procedures shall be treated as if they were made with 
sealed-bid procedures.''.
    (c) Repeal of Redundant Requirement Regarding Applicability of the 
Davis-Bacon Act and the Walsh-Healey Act.--Section 308 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 258) is 
repealed.
    (d) Prohibition on Convict Labor and Prison Goods.--No agency of 
the United States shall purchase any goods, wares or merchandise whose 
transportation in interstate commerce, or whose importation, is 
prohibited by section 1761 of title 18, United States Code. The 
preceding sentence does not apply to a contract in an amount that does 
not exceed the simplified acquisition threshold (as defined in section 
4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(11))).

SEC. 4103. DIRECT CONTRACTING WITH SMALL BUSINESSES.

    Section 8(a)(1) of the Small Business Act (15 U.S.C. 637(a)(1)) is 
amended in subparagraph (A) by striking out ``In any case in which the 
Administration certifies'' and all that follows through ``may be agreed 
upon between the Administration and the procurement officer.'' and 
inserting in lieu thereof the following: ``In any case in which the 
Administration certifies to any officer of the Government having 
procurement powers that the Administration is competent and responsible 
to perform any specific Government procurement contract to be awarded 
by any such officer, such officer shall be authorized in his discretion 
(i) to award such procurement contract to the Administration upon such 
terms and conditions as may be agreed upon between the Administration 
and the procurement officer, or (ii) to award such procurement contract 
directly to a socially and economically disadvantaged small business 
concern designated by the Administration, except that such contract may 
not be awarded directly to that small business concern if the small 
business concern requests that the award be made through the 
Administration.''.

               Subtitle C--Miscellaneous Acquisition Laws

SEC. 4151. REPEAL OF OBSOLETE LAWS RELATING TO PROCUREMENT OF NAVAL 
              AIRCRAFT AND COMPONENTS.

    (a) Authorized Number.--Section 7341 of title 10, United States 
Code, is repealed.
    (b) Construction or Manufacture in Federal Government Plants.--
            (1) Minimum percentage.--Section 7342 of title 10, United 
        States Code, is repealed.
            (2) Authorization under certain circumstances.--Section 
        7343 of title 10, United States Code, is repealed.
    (c) Annual Report of Navy Aircraft Requirements.--Section 7345 of 
title 10, United States Code, is repealed.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 635 of title 10, United States Code, is amended by striking out 
the items relating to sections 7341, 7342, 7343, and 7345.

SEC. 4152. REVISION AND CODIFICATION OF PROHIBITION ON USE OF FUNDS FOR 
              DOCUMENTING ECONOMIC OR EMPLOYMENT IMPACT OF CERTAIN 
              ACQUISITION PROGRAMS.

    (a) In General.--Subchapter I of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2246. Prohibition on use of funds for documenting economic or 
              employment impact of certain acquisition programs
    ``No funds appropriated by the Congress may be obligated or 
expended to assist any contractor of the Department of Defense in 
preparing any material, report, lists, or analysis with respect to the 
actual or projected economic or employment impact in a particular State 
or congressional district of an acquisition program for which all 
research, development, testing, and evaluation has not been 
completed.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2246. Prohibition on use of funds for documenting economic or 
                            employment impact of certain acquisition 
                            programs.''.

SEC. 4153. RESTRICTION ON USE OF NONCOMPETITIVE PROCEDURES FOR 
              PROCUREMENT FROM A PARTICULAR SOURCE.

    (a) Armed Services Acquisitions.--Section 2304 of title 10, United 
States Code, as amended by section 1005(b), is further amended--
            (1) in subsection (c)(5), by inserting ``subject to 
        subsection (j),'' after ``(5)''; and
            (2) by adding at the end the following new subsection:
    ``(j)(1) It is the policy of Congress that no legislation should be 
enacted that requires a procurement to be made from a specified non-
Federal Government source.
    ``(2) A provision of law may not be construed as requiring a 
procurement to be made from a specified non-Federal Government source 
unless that provision of law--
            ``(A) specifically refers to this subsection;
            ``(B) specifically identifies the particular non-Federal 
        Government source involved; and
            ``(C) specifically states that the procurement from that 
        source is required by such provision of law in contravention of 
        the policy set forth in paragraph (1).''.
    (b) Civilian Agency Acquisitions.--Section 303 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253) is 
amended--
            (1) in subsection (c)(5), by inserting ``subject to 
        subsection (h),'' after ``(5)''; and
            (2) by adding at the end the following new subsection:
    ``(h)(1) It is the policy of Congress that no legislation should be 
enacted that requires a procurement to be made from a specified non-
Federal Government source.
    ``(2) A provision of law may not be construed as requiring a 
procurement to be made from a specified non-Federal Government source 
unless that provision of law--
            ``(A) specifically refers to this subsection;
            ``(B) specifically identifies the particular non-Federal 
        Government source involved; and
            ``(C) specifically states that the procurement from that 
        source is required by such provision of law in contravention of 
        the policy set forth in paragraph (1).''.

                     TITLE V--INTELLECTUAL PROPERTY

                    Subtitle A--Technology Transfer

SEC. 5001. COPYRIGHT PROTECTION FOR COMPUTER PROGRAMS OF THE FEDERAL 
              GOVERNMENT.

    (a) General Authority To Copyright.--Section 15 of the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710d) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Rights to Computer Programs Prepared by Government 
Employees.--(1) For purposes of title 17, United States Code--
            ``(A) a computer program prepared by an officer or employee 
        of the Federal Government in the course of the officer's or 
        employee's official duties shall be considered as a work made 
        for hire within the meaning of paragraph (1) of the definition 
        of the term `work made for hire' set forth in section 101 of 
        such title; and
            ``(B) notwithstanding section 105 of such title, the 
        Federal Government shall be considered the author of the 
        computer program for purposes of section 201(b) of such title.
    ``(2)(A) If the Federal agency concerned does not intend to 
register a copyright of the computer program or otherwise to promote 
the commercialization of the computer program, the Federal agency may 
enter into an agreement with the officer or employee of the Federal 
Government who prepared the computer program to allow such officer or 
employee to own a copyright protecting such computer program under 
title 17, United States Code.
    ``(B) The agreement shall be a written instrument that satisfies 
the requirements of section 201(b) of title 17, United States Code.
    ``(C) The agreement shall include--
            ``(i) a reservation for the Federal Government of a 
        nonexclusive, nontransferable, irrevocable, paid-up license to 
        exercise all rights under the copyright by or on behalf of the 
        Federal Government throughout the world; and
            ``(ii) such other reservations as the head of the Federal 
        agency concerned considers necessary to ensure distribution and 
        utilization of the computer program.
    ``(3) In this subsection, the term `computer program' has the 
meaning given such term in section 101 of title 17, United States 
Code.''.
    (b) Works in Connection With Cooperative Research and Development 
Agreements.--
            (1) Copyright protection for the united states.--Section 12 
        of the Stevenson-Wydler Technology Innovation Act of 1980 (15 
        U.S.C. 3710a) is amended by adding at the end the following new 
        subsection:
    ``(h) Copyright of Computer Programs.--(1) Notwithstanding section 
105 of title 17, United States Code, a Federal agency may secure, on 
behalf of the United States as author or proprietor, copyright 
protection for any computer program prepared by an employee of the 
Federal Government in the course of work under, or work related to, a 
cooperative research and development agreement entered into by such 
Federal agency under the authority of subsection (a)(1) or under any 
similar authority.
    ``(2) A Federal agency may grant or agree to grant in advance to a 
collaborating party licenses or assignments for a copyright of a 
computer program registered pursuant to paragraph (1), or options 
thereto, retaining--
            ``(A) a nonexclusive, nontransferable, irrevocable, paid-up 
        license to reproduce, adapt, translate, distribute, and 
        publicly perform or display the computer program throughout the 
        world by or on behalf of the Federal Government; and
            ``(B) such other rights that the Federal agency deems 
        appropriate.''.
            (2) Computer program defined.--Subsection (d) of such 
        section is amended--
                    (A) by striking out ``section--'' and inserting in 
                lieu thereof ``section:'';
                    (B) by capitalizing the initial letter of the first 
                word in each of paragraphs (1), (2), and (3);
                    (C) by striking out the semicolon at the end of 
                paragraph (1) and inserting in lieu thereof a period;
                    (D) in paragraph (2), by striking out ``; and'' at 
                the end and inserting in lieu thereof a period; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(5) The term `computer program' has the meaning given 
        such term in section 101 of title 17, United States Code.''.

SEC. 5002. USE OF COPYRIGHTED WORKS OF THE FEDERAL GOVERNMENT.

    Section 12 of the Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3710a) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by inserting ``or copyrighted works'' 
                        after ``(including licensees of inventions''; 
                        and
                            (ii) by striking out ``and'' at the end;
                    (B) by striking out the period at the end of 
                paragraph (2) and inserting in lieu thereof ``; and''; 
                and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) to negotiate licensing agreements consistent with 
        section 207 of title 35, United States Code, or under other 
        authorities (in the case of a Government-owned, contractor-
        operated laboratory, subject to subsection (c) of this section) 
        for copyrighted works owned by the Federal Government pursuant 
        to subsection (h) or copyrighted works that may be voluntarily 
        assigned to the Federal Government.''; and
            (2) in subsection (b)--
                    (A) by striking out paragraphs (2) and (3) and 
                inserting in lieu thereof the following:
            ``(2) grant or agree to grant in advance, to a 
        collaborating party--
                    ``(A) patent licenses or assignments, or options 
                thereto, in any invention made in whole or in part by a 
                laboratory employee under the agreement, retaining--
                            ``(i) a nonexclusive, nontransferable, 
                        irrevocable, paid-up license to practice the 
                        invention, or have the invention practiced, 
                        throughout the world by or on behalf of the 
                        Government; and
                            ``(ii) such other rights as the Federal 
                        laboratory deems appropriate; and
                    ``(B) copyright licenses or assignments, or options 
                thereto, in any copyrighted work prepared in whole or 
                in part by a laboratory employee under the agreement, 
                retaining--
                            ``(i) a nonexclusive, nontransferable, 
                        irrevocable, paid-up license to exercise all 
                        rights under the copyright, or have all rights 
                        under the copyright exercised, throughout the 
                        world by or on behalf of the Government; and
                            ``(ii) such other rights as the Federal 
                        laboratory deems appropriate;
            ``(3) waive in advance, in whole or in part, any right of 
        ownership which the Federal Government may have to--
                    ``(A) any subject invention made under the 
                agreement by a collaborating party or employee of a 
                collaborating party, subject to reservation by the 
                Government of a nonexclusive, irrevocable, paid-up 
                license to practice the invention, or have the 
                invention practiced, throughout the world by or on 
                behalf of the Government; or
                    ``(B) any subject copyrighted work prepared under 
                the agreement by a collaborating party or employee of a 
                collaborating party, subject to reservation by the 
                Government of a nonexclusive, irrevocable, paid-up 
                license to reproduce the copyrighted work, or have the 
                copyrighted work reproduced, throughout the world by or 
                on behalf of the Government;'';
                    (B) by striking out paragraph (5) and inserting in 
                lieu thereof the following:
            ``(5) to the extent consistent with any applicable agency 
        requirements and standards of conduct, permit an employee or 
        former employees of the laboratory to participate in efforts to 
        commercialize an invention that the employee or former employee 
        made, or a copyrighted work that the employee or former 
        employee prepared, while in the service of the United States 
        (notwithstanding that such employee or former employee may have 
        received royalties pursuant to section 14), but only if such 
        employee or former employee did not participate in the 
        selection of the collaborating party to the relevant 
        cooperative research and development agreement or in the 
        negotiation of a licensing agreement under which the invention 
        or copyrighted work, as the case may be, is being 
        commercialized.''; and
                    (C) in the matter following paragraph (5)--
                            (i) by inserting ``or copyrighted work'' 
                        after ``any invention''; and
                            (ii) in clause (i), by inserting ``or to 
                        authors of copyrighted works'' after 
                        ``inventors''.

SEC. 5003. DISTRIBUTION OF ROYALTIES RECEIVED BY FEDERAL AGENCIES.

    (a) Copyrighted Works.--Section 14 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 3710c) is amended--
            (1) in subsection (a)--
                    (A) in the matter above subparagraph (A), by 
                striking out ``inventions under agreements'' and all 
                that follows through ``produced the invention'' and 
                inserting in lieu thereof ``an invention or 
                copyrightable work under an agreement entered into by a 
                Government-operated Federal laboratory under section 
                12, and an invention or copyrightable work of a 
                Government-operated Federal laboratory licensed under 
                section 207 of title 35, United States Code, or under 
                any other provision of law, shall be retained by the 
                agency whose laboratory produced the invention or 
                copyrighted work'';
                    (B) in paragraph (1)(A)--
                            (i) in clause (i)--
                                    (I) in the first sentence, by 
                                striking out ``inventor'' and all that 
                                follows and inserting in lieu thereof 
                                ``inventor or copyrighted work to the 
                                author (or the co-inventors or co-
                                authors) if the inventor or author (or 
                                each such co-inventor or co-author) has 
                                assigned his or her rights in the 
                                invention or copyrighted work to the 
                                United States.''; and
                                    (II) by striking out the second 
                                sentence;
                            (ii) in clause (ii)--
                                    (I) by inserting ``or authors'' 
                                after ``inventors'' in the matter above 
                                subclause (I);
                                    (II) by striking out ``inventor,'' 
                                in subclauses (I) and (II) and 
                                inserting in lieu thereof ``inventor or 
                                author'';
                                    (III) by inserting ``or author's 
                                copyrighted work'' in subclauses (I) 
                                and (II) after ``inventor's 
                                invention'';
                                    (IV) in subclause (III), by 
                                inserting ``and authors'' after ``such 
                                inventors''; and
                                    (V) in subclause (IV), by striking 
                                out ``licensed invention'' and all that 
                                follows and inserting in lieu thereof 
                                ``licensed invention between the time 
                                of the filing of the patent application 
                                and the licensing of the invention or 
                                to the technical development of a 
                                licensed copyrighted work between the 
                                time of the filing of the application 
                                for copyright registration and the 
                                licensing of the copyrighted work.''; 
                                and
                            (iii) by adding at the end the following 
                        new clause (iv):
    ``(iv) An agency that has published its intention to promulgate 
regulations under clause (ii) with regard to authors of copyrighted 
works may elect not to pay authors under clause (i) until the earlier 
of the date two years after the date of the enactment of the Federal 
Acquisition Streamlining Act of 1993 or the date of the promulgation of 
such regulations. If an agency makes such an election and after two 
years the regulations have not been promulgated, the agency shall make 
payments (in accordance with clause (i)) of at least 15 percent of the 
royalties involved, retroactive to the date of the enactment of the 
Federal Acquisition Streamlining Act of 1993. If promulgation of the 
regulations occurs within two years after the date of the enactment of 
the Federal Acquisition Streamlining Act of 1993, payments shall be 
made in accordance with such regulations, retroactive to such date. The 
agency shall retain its royalties until the author's portion is paid 
under either clause (i) or (ii). Such royalties may not be transferred 
to the agency's Government-operated laboratories under subparagraph (B) 
and may not revert to the Treasury pursuant to paragraph (2) as a 
result of any delay caused by rule making under this subparagraph.'';
                    (C) in paragraph (1)(B)--
                            (i) in the matter above clause (i), by 
                        striking out ``going to the laboratory where 
                        the invention occurred'' and inserting in lieu 
                        thereof ``or copyrighted work going to the 
                        laboratory where the invention occurred or the 
                        copyrighted work was prepared''; and
                            (ii) in clause (i)--
                                    (I) by inserting ``or copyrighted 
                                works'' after ``licensing of 
                                inventions'';
                                    (II) by inserting ``, or 
                                copyrighted works were prepared,'' 
                                after ``inventions which occurred''; 
                                and
                                    (III) by inserting ``or copyrighted 
                                work'' before ``management'';
                    (D) in paragraph (2), by inserting ``and authors'' 
                after ``inventors'';
                    (E) in paragraph (3), by inserting ``or author'' 
                after ``inventor'' both places it appears in the second 
                sentence; and
                    (F) in the first sentence of paragraph (4)--
                            (i) by inserting ``, or copyrighted work 
                        management services,'' after ``management 
                        services'';
                            (ii) by inserting ``or authors'' after 
                        ``inventors'';
                            (iii) by inserting ``or copyrighting'' 
                        after ``patenting''; and
                            (iv) by inserting ``or copyright'' after 
                        ``for any invention'';
            (2) in subsection (b)--
                    (A) in the matter above paragraph (1), by inserting 
                ``or copyrightable work'' after ``invention''; and
                    (B) in paragraph (2), by striking out ``at the 
                time'' and all that follows and inserting in lieu 
                thereof ``at the time the invention was made or 
                copyrightable work was prepared,''; and
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking out ``(1)''; and
                            (ii) by inserting ``or author'' after 
                        ``(including inventor''; and
                    (B) by striking out paragraph (2).
    (b) Effective Date.--The amendment made by subsection 
(a)(1)(B)(i)(I) shall take effect with respect to a department or 
agency of the Federal Government as of the date of the enactment of 
this Act unless, within 90 days after that date, such department or 
agency publishes in the Federal Register a notice of election to file a 
notice of proposed rulemaking with regard to authors of copyrighted 
works pursuant to section 14(a)(1)(A)(ii) of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 3710c(a)(1)(A)(ii)), as 
amended by subsection (a)(1)(B)(ii).

SEC. 5004. EXCEPTION TO PROHIBITION ON COPYRIGHT PROTECTION FOR WORKS 
              OF THE FEDERAL GOVERNMENT.

    The text of section 105 of title 17, United States Code, is amended 
to read as follows:
    ``(a) Except as provided in subsection (b), copyright protection 
under this title is not available for any work of the United States 
Government.
    ``(b)(1) Subsection (a) does not preclude the United States from 
receiving and holding copyrights transferred to it by assignment, 
bequest, or otherwise.
    ``(2) Subsection (a) does not preclude the United States from 
copyright protection under this title that is authorized in section 
12(h) or 15(b) of the Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3710a(h) or 3710d(b)).''.

 Subtitle B--Government Use of Private Patents, Copyrights, and Trade 
                                Secrets

SEC. 5011. GOVERNMENT USE OR MANUFACTURE OF A PATENTED INVENTION.

    (a) Withholding of Government Consent for Contractor Use or 
Manufacture.--The second undesignated paragraph of section 1498(a) of 
title 28, United States Code, is amended by inserting after the first 
sentence the following: ``The Federal Acquisition Regulatory Council 
established under section 25(a) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 421(a)) shall prescribe in the Federal 
Acquisition Regulation the circumstances under which a contracting 
officer may withhold authorization or consent under this paragraph. The 
Federal Acquisition Regulation shall provide that authorization or 
consent may not ordinarily be granted for contracts for the acquisition 
of commercial items (as defined in section 4(12) of such Act (41 U.S.C. 
403(12))).''.
    (b) Injunction Not Authorized Regarding Government Contractor Use 
or Manufacture.--Section 283 of title 35, United States Code, is 
amended by adding at the end the following: ``Notwithstanding the 
preceding sentence, no such court may grant an injunction in the case 
of a violation of a right secured by patent that occurs in the 
performance of a Federal Government contract.''.

SEC. 5012. DEPARTMENT OF DEFENSE ACQUISITION OF INTELLECTUAL PROPERTY 
              RIGHTS.

    (a) Authorized Acquisitions.--Section 2386 of title 10, United 
States Code, is amended by striking out paragraphs (3) and (4) and 
inserting in lieu thereof the following:
            ``(3) Technical data and computer software.
            ``(4) Releases for past infringement of patents or 
        copyrights or for unauthorized use of technical data or 
        computer software.''.
    (b) Redundant Provision.--
            (1) Repeal.--Section 7210 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 631 of such title is amended by striking 
        out the item relating to section 7210.

                     TITLE VI--STANDARDS OF CONDUCT

                     Subtitle A--Ethics Provisions

SEC. 6001. AMENDMENTS TO OFFICE OF FEDERAL PROCUREMENT POLICY ACT.

    (a) Recusal.--Subsection (c) of section 27 of the Office of 
Procurement Policy Act (41 U.S.C. 423) is amended--
            (1) in paragraph (1)--
                    (A) in the matter above subparagraph (A), by 
                inserting ``only'' after ``subsection (b)(1)''; and
                    (B) in subparagraph (A), by inserting ``(including 
                the modification or extension of a contract)'' after 
                ``any procurement'';
            (2) by striking out paragraphs (2) and (3) and inserting in 
        lieu thereof:
    ``(2) Whenever the head of a procuring activity approves a recusal 
under paragraph (1), a copy of the recusal request and the approval of 
the request shall be retained by such official for a period (not less 
than five years) specified in regulations prescribed in accordance with 
subsection (o).
    ``(3)(A) Except as provided in subparagraph (B), all recusal 
requests and approvals of recusal requests pursuant to this subsection 
shall be made available to the public on request.
    ``(B) Any part of a recusal request or an approval of a recusal 
request that is exempt from the disclosure requirements of section 552 
of title 5, United States Code, under subsection (b)(1) of such section 
may be withheld from disclosure to the public otherwise required under 
subparagraph (A).''; and
            (3) in paragraph (4), by striking out ``competing 
        contractor'' and inserting in lieu thereof ``person''.
    (b) Applicability of Certification Requirement.--Subsection 
(e)(7)(A) of such section is amended by adding at the end the 
following: ``However, paragraph (1)(B) does not apply with respect to a 
contract for less than $500,000.''.
    (c) Restrictions Resulting From Procurement Activities of 
Procurement Officials.--Subsection (f) of such section is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by striking out paragraphs (1) and (2) and inserting in 
        lieu thereof the following:
    ``(1) No individual who, in the year prior to separation from 
service as an officer or employee of the Government or an officer of 
the uniformed services in a covered position, participated personally 
and substantially in acquisition functions related to a contract, 
subcontract, or claim of $500,000 or more and--
            ``(A) engaged in repeated direct contact with the 
        contractor or subcontractor on matters relating to such 
        contract, subcontract, or claim; or
            ``(B) exercised significant ongoing decisionmaking 
        responsibility with respect to the contractor or subcontractor 
        on matters relating to such contract, subcontract, or claim,
shall knowingly accept or continue employment with such contractor or 
subcontractor for a period of 1 year following the individual's 
separation from service, except that such individual may accept or 
continue employment with any division or affiliate of such contractor 
or subcontractor that does not produce the same or similar products as 
the entity involved in the negotiation or performance of the contract 
or subcontract or the adjustment of the claim.
    ``(2) No contractor or subcontractor, or any officer, employee, 
agent, or consultant of such contractor or subcontractor shall 
knowingly offer, provide, or continue any employment for another 
person, if such contractor, subcontractor, officer, employee, agent, or 
consultant knows or should know that the acceptance of such employment 
is or would be in violation of paragraph (1).
    ``(3) The head of each Federal agency shall designate in writing as 
a `covered position' under this section each of the following positions 
in that agency:
            ``(A) The position of source selection authority, member of 
        a source selection evaluation board, or chief of a financial or 
        technical evaluation team, or any other position, if the 
        officer or employee in that position is likely personally to 
        exercise substantial responsibility for ongoing discretionary 
        functions in the evaluation of proposals or the selection of a 
        source for a contract in excess of $500,000.
            ``(B) The position of procuring contracting officer, or any 
        other position, if the officer or employee in that position is 
        likely personally to exercise substantial responsibility for 
        ongoing discretionary functions in the negotiation of a 
        contract in excess of $500,000 or the negotiation or settlement 
        of a claim in excess of $500,000.
            ``(C) The position of program executive officer, program 
        manager, or deputy program manager, or any other position, if 
        the officer or employee in that position is likely personally 
        to exercise similar substantial responsibility for ongoing 
        discretionary functions in the management or administration of 
        a contract in excess of $500,000.
            ``(D) The position of administrative contracting officer, 
        the position of an officer or employee assigned on a permanent 
        basis to a Government Plant Representative's Office, the 
        position of auditor, a quality assurance position, or any other 
        position, if the officer or employee in that position is likely 
        personally to exercise substantial responsibility for ongoing 
        discretionary functions in the on-site oversight of a 
        contractor's operations with respect to a contract in excess of 
        $500,000.
            ``(E) A position in which the incumbent is likely 
        personally to exercise substantial responsibility for ongoing 
        discretionary functions in operational or developmental testing 
        activities involving repeated direct contact with a contractor 
        regarding a contract in excess of $500,000.''.
    (d) Disclosure of Proprietary or Source Selection Information to 
Unauthorized Persons.--Subsection (l) of such section is amended--
            (1) by inserting ``who are likely to be involved in 
        contracts, modifications, or extensions in excess of $25,000'' 
        in the first sentence after ``its procurement officials''; and
            (2) by striking out ``(e)'' each place it appears and 
        inserting in each such place ``(f)''.
    (e) Rules of Construction.--Subsection (n) of such section is 
amended to read as follows:
    ``(n) Rules of Construction.--Nothing in this section shall be 
construed to--
            ``(1) authorize the withholding of any information from the 
        Congress, any committee or subcommittee thereof, a Federal 
        agency, any board of contract appeals of a Federal agency, the 
        Comptroller General, or an inspector general of a Federal 
        agency;
            ``(2) restrict the disclosure of information to, or receipt 
        of information by, any person or class of persons authorized, 
        in accordance with applicable agency regulations or procedures, 
        to receive that information;
            ``(3) restrict a contractor from disclosing its own 
        proprietary information or the recipient of information so 
        disclosed by a contractor from receiving such information; or
            ``(4) restrict the disclosure or receipt of information 
        relating to a Federal agency procurement that has been canceled 
        by the agency and that the contracting officer concerned 
        determines in writing is not likely to be resumed.''.
    (f) Term To Be Defined in Regulations.--Subsection (o)(2)(A) of 
such section is amended--
            (1) by inserting ``money, gratuity, or other'' before 
        ``thing of value'''; and
            (2) by inserting before the semicolon ``and such other 
        exceptions as may be adopted on a Governmentwide basis under 
        section 7353 of title 5, United States Code''.
    (g) Terms Defined in Law.--Subsection (p) of such section is 
amended--
            (1) in paragraph (1) by striking out ``clauses (i)-(viii)'' 
        and inserting in lieu thereof ``clauses (i) through (vii)'';
            (2) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) by striking out clause (i);
                            (ii) by redesignating clauses (ii), (iii), 
                        (iv), (v), (vi), (vii), and (viii) as clauses 
                        (i), (ii), (iii), (iv), (v), (vi), and (vii), 
                        respectively; and
                            (iii) in clause (i) (as redesignated by 
                        subclause (II) of this clause), by striking out 
                        ``review and approval of a specification'' and 
                        inserting in lieu thereof ``approval or 
                        issuance of a specification, acquisition plan, 
                        procurement request, or requisition''; and
                    (B) in subparagraph (B), by striking out all after 
                ``includes'' and inserting in lieu thereof the 
                following: ``any individual acting on behalf of, or 
                providing advice to, the agency with respect to any 
                phase of the agency procurement concerned, regardless 
                of whether such individual is a consultant, expert, or 
                advisor, or an officer or employee of a contractor or 
                subcontractor (other than a competing contractor).''; 
                and
            (3) in paragraph (6)(A), by inserting ``nonpublic'' before 
        ``information''.

SEC. 6002. AMENDMENTS TO TITLE 18, UNITED STATES CODE.

    Section 208(a) of title 18, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Except as permitted''; 
        and
            (2) by adding at the end the following new paragraph:
    ``(2) Whoever knowingly aids, abets, counsels, commands, induces, 
or procures conduct prohibited by this section shall be subject to the 
penalties set forth in section 216 of this title.''.

SEC. 6003. REPEAL OF SUPERSEDED AND OBSOLETE LAWS.

    (a) Repeal.--The following provisions of law are repealed:
            (1) Sections 2207, 2397, 2397a, 2397b, 2397c, and 2408 of 
        title 10, United States Code.
            (2) Section 281 of title 18, United States Code.
            (3) Section 801 of title 37, United States Code.
            (4) Part A of title VI of the Department of Energy 
        Organization Act (42 U.S.C. 7211 through 7218).
    (b) Clerical Amendments.--
            (1) Title 10.--Part IV of subtitle A of title 10, United 
        States Code, is amended--
                    (A) in the table of sections at the beginning of 
                chapter 131, by striking out the item relating to 
                section 2207; and
                    (B) in the table of sections for chapter 141, by 
                striking out the items relating to sections 2397, 
                2397a, 2397b, 2397c, and 2408.
            (2) Title 18.--The table of sections for chapter 15 of 
        title 18, United States Code, is amended by striking out the 
        item relating to section 281.
            (3) Title 37.--The table of sections for chapter 15 of 
        title 37, United States Code, is amended by striking out the 
        item relating to section 801.
            (4) Department of energy organization act.--The table of 
        contents for the Department of Energy Organization Act is 
        amended by striking out the matter relating to part A of title 
        VI.

SEC. 6004. IMPLEMENTATION.

    (a) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, regulations implementing the amendments made by 
this section to section 27 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 423), including definitions of the terms used in 
subsection (f) of such section shall be issued in accordance with 
sections 6 and 25 of such Act (41 U.S.C. 405 and 521) after 
coordination with the Director of the Office of Government Ethics.
    (b) Savings Provisions.--
            (1) Contractor certifications.--No officer, employee, 
        agent, representative, or consultant of a contractor who has 
        signed a certification under section 27(e)(1)(B) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 423(e)(1)(B)) 
        before the effective date of this Act shall be required to sign 
        a new certification as a result of the enactment of this Act.
            (2) Federal procurement official certifications.--No 
        procurement official of a Federal agency who has signed a 
        certification under section 27(l) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 423(l)) before the date of 
        enactment of this Act shall be required to sign a new 
        certification as a result of the enactment of this Act.
    (c) Inspector General Reports.--Not later than May 31 of each of 
the years 1994 through 1998, the Inspector General of each Federal 
agency (or, in the case of a Federal agency that does not have an 
Inspector General, the head of such agency) shall submit to Congress a 
report on the compliance by the agency during the preceding year with 
the requirement for the head of the agency to designate covered 
procurement positions under section 27(f)(3) of the Office of Federal 
Procurement Policy Act (as added by section 6001(c)).

                   Subtitle B--Additional Amendments

SEC. 6051. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL PERSONNEL.

    (a) Amendment of OFPP Act.--The Office of Federal Procurement 
Policy Act, as amended by section 1091, is further amended by inserting 
after section 22 the following new section 23:

         ``contracting functions performed by federal personnel

    ``Sec. 23. (a) Limitation on Payment for Advisory and Assistance 
Services.--(1) No person who is not an employee may be paid by an 
agency for services to conduct evaluations or analyses of any aspect of 
a proposal submitted for an acquisition unless employees with adequate 
training and capabilities to perform such evaluations and analyses are 
not readily available within the agency or any other Federal agency.
    ``(2) In the administration of this subsection, the head of each 
agency shall determine the standards of adequate training and 
capability of employees to conduct such acquisitions.
    ``(b) Delegation of Procurement Authority.--With respect to an 
acquisition that is subject to section 111 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759), the Administrator 
of General Services may not issue a delegation of procurement authority 
for the acquisition unless the request for the delegation of 
procurement authority includes a determination of the contracting 
agency that--
            ``(1) such agency has and will utilize employees within the 
        agency, or employees available from another agency, who are 
        adequately trained and capable of conducting evaluations and 
        analyses of proposals submitted for such an acquisition; or
            ``(2)(A) such agency does not have employees within the 
        agency who are adequately trained and capable of conducting 
        evaluations and analyses of proposals submitted for such an 
        acquisition; and
            ``(B) adequately trained and capable employees are not 
        readily available from other agencies in accordance with 
        regulations promulgated by the Federal Acquisition Regulatory 
        Council.
    ``(c) Definition.--For purposes of this section, the term 
`employee' has the meaning given such term in section 2105 of title 5, 
United States Code.''.
    (b) Requirement for Guidance and Regulations.--
            (1) Guidance and regulations required.--Not later than 90 
        days after the date of the enactment of this Act, the Federal 
        Acquisition Regulatory Council established by section 25(a) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) 
        shall--
                    (A) review part 37 of title 48 of the Code of 
                Federal Regulations as it relates to the use of 
                advisory and assistance services; and
                    (B) provide guidance and promulgate regulations 
                regarding--
                            (i) what actions Federal agencies are 
                        required to take to determine whether expertise 
                        is readily available within the Federal 
                        Government before contracting for advisory and 
                        technical services to conduct acquisitions; and
                            (ii) the manner in which Federal employees 
                        with expertise may be shared with agencies 
                        needing expertise for such acquisitions.
            (2) Definition.--In paragraph (1), the term ``employee'' 
        has the meaning given such term in section 2105 of title 5, 
        United States Code.

SEC. 6052. REPEAL OF EXECUTED REQUIREMENT FOR STUDY AND REPORT.

    Section 17 of the Office of Federal Procurement Policy Act (41 
U.S.C. 415) is repealed.

SEC. 6053. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED FOR 
              ACQUISITION REGULATIONS.

    Section 22(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 418b) is amended--
            (1) by striking out ``30 days'' and inserting in lieu 
        thereof ``60 days''; and
            (2) by adding at the end the following: ``Notwithstanding 
        the preceding sentence, such 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 in no event may that effective 
        date be less than 30 days after the publication date.''.

                TITLE VII--DEFENSE TRADE AND COOPERATION

SEC. 7001. PURCHASES OF FOREIGN GOODS.

    (a) Repeal of Executed Requirements.--
            (1) Buy american provisions.--
                    (A) Requirement for policy guidance.--Title III of 
                the Act of March 3, 1933 (41 U.S.C. 10a et seq.), 
                commonly referred to as the ``Buy American Act'', is 
                amended in section 4(g) (41 U.S.C. 10b-1(g)) by 
                striking out paragraphs (2)(C) and (3).
                    (B) Reporting requirement.--Section 9096(b) of 
                Public Law 102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) 
                is repealed.
            (2) Studies of buy american act waivers.--Section 306 of 
        the Trade Agreements Act of 1970 (19 U.S.C. 2516), relating to 
        studies of certain employment effects and procurement effects 
        of a waiver of title III of the Act of March 3, 1933 (41 U.S.C. 
        10a et seq.), commonly referred to as the ``Buy American Act'', 
        is repealed.
    (b) Repeal of Redundant Provision.--Section 2327 of title 10, 
United States Code, is repealed.

SEC. 7002. INTERNATIONAL COOPERATIVE AGREEMENTS.

    (a) Defense International Agreements.--
            (1) Terminology revisions.--Section 2531 of title 10, 
        United States Code, is amended--
                    (A) in the subsection captions for subsections (a) 
                and (c), by striking out ``MOUs and Related'' and 
                inserting in lieu thereof ``International'';
                    (B) in subsection (a), by striking out ``proposed 
                memorandum of understanding, or any existing or 
                proposed agreement related to a memorandum of 
                understanding,'' in the matter above paragraph (1) and 
                inserting in lieu thereof ``proposed international 
                agreement, including a memorandum of understanding,'';
                    (C) by striking out ``memorandum of understanding 
                or related agreement'' each place it appears and 
                inserting in lieu thereof ``international agreement'';
                    (D) in subsection (b), by striking out ``memorandum 
                or related agreement'' each place it appears in the 
                second sentence and inserting in lieu thereof 
                ``international agreement''; and
                    (E) in subsection (c)--
                            (i) by striking out ``A'' after 
                        ``Agreements.--'' and inserting in lieu thereof 
                        ``An''; and
                            (ii) by striking out ``memorandum or 
                        agreement'' and inserting in lieu thereof 
                        ``international agreement''.
            (2) Expanded scope of agreements.--Section 2531(a) of title 
        10, United States Code, is amended by striking out ``research, 
        development, or production'' in the matter above paragraph (1) 
        and inserting in lieu thereof ``research, development, 
        production, or logistics support''.
            (3) Clerical amendments.--
                    (A) Section heading.--The heading of section 2531 
                of title 10, United States Code, is amended to read as 
                follows:
``Sec. 2531. Defense international agreements''.
                    (B) Table of sections.--The item relating to such 
                section in the table of sections at the beginning of 
                subchapter V of chapter 148 of such title is amended to 
                read as follows:

``2531. Defense international agreements.''.
    (b) Repeal of Unnecessary Authority.--
            (1) Repeal.--Section 7344 of title 10, United States Code, 
        is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 635 of such title is amended by striking 
        out the item relating to section 7344.

SEC. 7003. ACQUISITION, CROSS-SERVICING AGREEMENTS, AND 
              STANDARDIZATION.

    (a) Limited Waiver of Restrictions on Accrued Reimbursable 
Liabilities and Credits for Contingency Operations.--Section 2347 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(c) The Secretary of Defense may waive the restrictions in 
subsections (a) and (b) for a period not to exceed 180 days upon a 
written determination that the armed forces are involved in a 
contingency operation or that involvement of the armed forces in a 
contingency operation is imminent. Upon making such a determination, 
the Secretary shall transmit a copy of the determination to the 
Committees on Armed Services of the Senate and House of 
Representatives.''.
    (b) Communications Support.--Section 2350f of title 10, United 
States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d)(1) Nothing in this section shall be construed to limit the 
authority of the Secretary of Defense, without a formal bilateral 
agreement or multilateral arrangement, to furnish communications 
support and related supplies to, or receive communications support and 
related supplies from, an allied country in accordance with this 
subsection.
    ``(2) The Secretary of Defense may furnish or receive such support 
and supplies on a reciprocal basis for a period not to exceed 90 days--
            ``(A) in order to meet emerging operational requirements of 
        the United States and the allied country; or
            ``(B) incident to a joint military exercise with the allied 
        country.
    ``(3) If interconnection of communication circuits is maintained 
for joint or multilateral defense purposes under the authority of this 
subsection, the costs of maintaining such circuits may be allocated 
among the various users.''.

                      TITLE VIII--COMMERCIAL ITEMS

SEC. 8001. DEFINITIONS.

    Section 4 of the Office of Federal Procurement Policy Act (41 
U.S.C. 403), as amended by section 4001(a), is further amended--
            (1) by striking out ``Act--''and inserting in lieu thereof 
        ``Act:'';
            (2) by capitalizing the initial letter in the first word of 
        each paragraph;
            (3) by striking out the semicolon at the end of each of 
        paragraphs (1), (2), (3), (5), (6), (7), (8), and (9) and 
        inserting in lieu thereof a period;
            (4) in paragraphs (4) and (10), by striking out ``; and'' 
        at the end and inserting in lieu thereof a period; and
            (5) by adding at the end the following new paragraphs:
            ``(12) The term `commercial item' means--
                    ``(A) property, other than real property, that is 
                of a type regularly used by the general public or by 
                nongovernmental entities in the course of normal 
                business operations for purposes other than 
                governmental purposes and--
                            ``(i) has been sold or licensed to the 
                        general public;
                            ``(ii) has not been sold or licensed to the 
                        general public but has been offered for sale or 
                        license to the general public; or
                            ``(iii) is not yet available in the 
                        commercial marketplace but will be made 
                        available for commercial delivery within a 
                        reasonable period;
                    ``(B) any item that, but for minor modifications 
                made to meet Federal Government requirements or 
                modifications of a type customarily available in the 
                commercial marketplace, would satisfy the criteria in 
                subparagraph (A);
                    ``(C) any combination of items meeting the 
                requirements of subparagraph (A) or (B) that are of a 
                type customarily combined and sold in combination to 
                the general public; and
                    ``(D) installation services, maintenance services, 
                repair services, training services, and other services 
                if such services are procured for support of an item 
                referred to in subparagraph (A), (B), or (C) and if the 
                source of such services--
                            ``(i) offers such services to the general 
                        public and the Federal Government 
                        contemporaneously and under similar terms and 
                        conditions; and
                            ``(ii) offers to use the same work force 
                        for providing the Federal Government with such 
                        services as the source uses for providing such 
                        services to the general public.
            ``(13) The term `nondevelopmental item' means--
                    ``(A) any commercial item;
                    ``(B) any previously developed item of supply that 
                is in use by a department or agency of the United 
                States, a State or local government, or a foreign 
                government with which the United States has a mutual 
                defense cooperation agreement;
                    ``(C) any item of supply described in subparagraph 
                (A) or (B) that requires only minor modification of the 
                type normally available in the commercial marketplace 
                in order to meet the requirements of the procuring 
                department or agency; or
                    ``(D) any item of supply currently being produced 
                that does not meet the requirements of subparagraph 
                (A), (B), or (C) solely because the item--
                            ``(i) is not yet in use; or
                            ``(ii) is not yet available in the 
                        commercial marketplace.
            ``(14) The term `component' means any item supplied to the 
        Federal Government as part of an end item or of another 
        component.
            ``(15) The term `commercial component' means any component 
        that is a commercial item.''.

SEC. 8002. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS AND 
              NONDEVELOPMENTAL ITEMS.

    (a) Preference Required.--The Office of Federal Procurement Policy 
Act (41 U.S.C. 401 et seq.), as amended by section 4021, is further 
amended by adding at the end the following new section:

 ``preference for acquisition of commercial items and nondevelopmental 
                                 items

    ``Sec. 31. (a) 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 are stated in terms of--
                    ``(A) functions to be performed;
                    ``(B) performance required; or
                    ``(C) essential physical characteristics;
            ``(2) such requirements are defined so that commercial 
        items or other nondevelopmental items may be procured to 
        fulfill such requirements; and
            ``(3) such requirements are fulfilled through the 
        procurement of commercial items or other nondevelopmental 
        items.
    ``(b) 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 other nondevelopmental 
        items to meet the needs of the executive agency;
            ``(2) require prime contractors and subcontractors at all 
        levels under the executive agency contracts to incorporate 
        commercial items or other nondevelopmental 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 other 
        nondevelopmental items;
            ``(4) state specifications in terms that enable and 
        encourage bidders and offerors to supply commercial items or 
        other nondevelopmental 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 other nondevelopmental 
        items; and
            ``(6) require training of appropriate personnel in the 
        acquisition of commercial items and other nondevelopmental 
        items.
    ``(c) Preliminary Market Research.--(1) 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) The head of an executive agency shall use the results of 
market research to determine whether there are commercial items or 
other nondevelopmental items 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.''.
    (b) Repeal of Superseded Provision.--
            (1) Separate statement of preference for department of 
        defense.--Section 2325 of title 10, United States Code, is 
        repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 137 of such title is amended by striking 
        out the item relating to section 2325.

SEC. 8003. ACQUISITION OF COMMERCIAL ITEMS.

    (a) Required FAR Provisions.--The Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.), as amended by section 8002, is 
further amended by adding at the end the following:

 ``federal acquisition regulation provisions regarding acquisitions of 
                    commercial items and components

    ``Sec. 32. (a) Contract Clauses and Other Clauses.--(1)(A) The 
Federal Acquisition Regulation shall include one or more sets of 
contract clauses containing the terms and conditions for the 
acquisition of commercial items and commercial components by executive 
agencies and by contractors in the performance of contracts of 
executive agencies.
    ``(B) The contract clauses referred to in subparagraph (A) shall 
include only--
            ``(i) those clauses that are required to implement 
        provisions of law applicable to acquisitions of commercial 
        items or commercial components, as the case may be;
            ``(ii) those contract clauses that are essential for the 
        protection of the Federal Government's interest in an 
        acquisition of commercial items or commercial components, as 
        the case may be; and
            ``(iii) those contract clauses that are determined to be 
        consistent with standard commercial practice and appropriate to 
        be included in a contract or subcontract for commercial items 
        or commercial components, as the case may be.
    ``(2) Subject to paragraph (3), the Federal Acquisition Regulation 
shall require that, to the maximum extent practicable, only the 
contract clauses referred to in paragraph (1) be used in a contract or 
subcontract for the acquisition of commercial items or commercial 
components by or for an executive agency.
    ``(3) The Federal Acquisition Regulation shall provide that a 
contract or subcontract referred to in paragraph (2) may contain 
contract clauses other than the contract clauses referred to in that 
paragraph only if the other clauses are essential for the protection of 
the Federal Government's interest in--
            ``(A) that contract or subcontract, as determined in 
        writing by the contracting officer for such contract; or
            ``(B) a class of contracts or subcontracts, as determined 
        by the head of an agency concerned, unless the determination of 
        that head of an agency is disapproved by the Administrator.
    ``(4) The Federal Acquisition Regulation shall provide standards 
and procedures for waiving the use of contract clauses required 
pursuant to paragraph (1), other than those required by law, including 
standards for determining the cases in which a waiver is appropriate.
    ``(b) Market Acceptance.--The Federal Acquisition Regulation shall 
include a requirement for the head of an executive agency, when 
determined appropriate in accordance with criteria set out in the 
regulation, to require offerors for a contract to demonstrate in the 
offer that the items offered--
            ``(1) have either--
                    ``(A) achieved a level of commercial market 
                acceptance necessary to indicate that the items are 
                suitable for the executive agency's use; or
                    ``(B) been satisfactorily supplied to an executive 
                agency under current or recent contracts for the same 
                or similar requirements; and
            ``(2) otherwise meet the item description, specifications, 
        or other criteria prescribed in the public notice and 
        solicitation relating to the contract.
    ``(c) Use of Firm, Fixed Price Contracts.--The Federal Acquisition 
Regulation shall include a requirement that firm, fixed price contracts 
be used, to the maximum extent practicable, for the acquisition of 
commercial items.
    ``(d) Contract Quality Requirements.--The Federal Acquisition 
Regulation shall include provisions that--
            ``(1) permit, to the maximum extent practicable, a 
        contractor under a commercial items acquisition to use the 
        contractor's existing quality assurance system as a substitute 
        for compliance with a 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;
            ``(2) require that, to the maximum extent practicable, an 
        executive agency take advantage of warranties (including 
        extended warranties) offered by offerors of commercial items 
        and use such warranties for the repair and replacement of 
        commercial items; and
            ``(3) set forth guidance to executive agencies regarding 
        the use of past performance of items and sources as a factor in 
        contract award decisions.''.
    (b) Defense Contract Clauses.--
            (1) Repeal of dod authority.--Section 824(b) of the 
        National Defense Authorization Act for Fiscal Years 1990 and 
        1991 (Public Law 101-189; 10 U.S.C. 2325 note) is repealed.
            (2) Savings provision.--Notwithstanding section 32(a) of 
        the Office of Federal Procurement Policy Act (as added by 
        subsection (a)), contracts of the Department of Defense entered 
        into before October 1, 1994, and subcontracts entered into 
        before such date under such contracts, may include clauses 
        developed pursuant to paragraphs (2) and (3) of section 824(b) 
        of the National Defense Authorization Act for Fiscal Years 1990 
        and 1991 (Public Law 101-189; 10 U.S.C. 2325 note).

SEC. 8004. CLASS WAIVER OF APPLICABILITY OF CERTAIN LAWS.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 8003, is further amended by adding at the 
end the following:

  ``class waiver of applicability of certain laws to acquisitions of 
                            commercial items

    ``Sec. 33. (a) In General.--(1) The applicability of a provision of 
law described in paragraph (2) to contracts for the acquisition of 
commercial items may be waived on a class basis in the Federal 
Acquisition Regulation. Such a waiver shall not apply to a provision of 
law that expressly refers to this section and prohibits the waiver of 
that provision of law.
    ``(2) A provision of law referred to in paragraph (1) is any 
provision of law enacted after the date of the enactment of the Federal 
Acquisition Streamlining Act of 1993 that, as determined by the 
Administrator for Federal Procurement Policy, sets forth policies, 
procedures, requirements, or restrictions for the procurement of 
property or services by the Federal Government.
    ``(b) Waiver of Applicability to Subcontracts.--The applicability 
of a provision of law described in subsection (a)(2) to subcontracts 
under a contract for the acquisition of commercial items may be waived 
on a class basis in the Federal Acquisition Regulation. Such a waiver 
shall not apply to a provision of law that expressly refers to this 
section and prohibits the waiver of that provision of law.''.

SEC. 8005. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.

    (a) Armed Services Acquisitions.--
            (1) Prohibition on contingent fees.--Section 2306(b) of 
        title 10, United States Code, as amended by section 4031, is 
        further amended by inserting before the period at the end of 
        the sentence added by section 4031 the following: ``or to a 
        contract for the acquisition of commercial items''.
            (2) Requirement to identify suppliers and sources of 
        supplies.--Paragraph (2) of section 2384(b) of title 10, United 
        States Code, is amended to read as follows:
    ``(2) The regulations prescribed pursuant to paragraph (1) do not 
apply to a contract that requires the delivery of supplies that are 
commercial items, as defined in section 2302 of this title.''.
            (3) Prohibition against doing business with certain 
        offerors or contractors.--Section 2393(d) of title 10, United 
        States Code, as amended by section 4034, is further amended by 
        adding at the end the following: ``The requirement shall not 
        apply in the case of a subcontract for the acquisition of 
        commercial items (as defined in section 4(12) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(12))).''.
            (4) Prohibition on limitation of subcontractor direct 
        sales.--Section 2402 of title 10, United States Code, as 
        amended by section 4032, is further amended by adding at the 
        end the following new subsection:
    ``(d)(1) An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under such contract 
that restricts sales by such subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict 
sales by that subcontractor to the United States in violation of the 
provision included in such 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 such commercial items from that subcontractor.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.
            (5) Preference for use of united states vessels for 
        transporting supplies of the armed forces.--Section 2631 of 
        title 10, United States Code, as amended by section 4036, is 
        further amended by inserting before the period at the end of 
        the sentence added by section 4036 the following: ``or to a 
        contract for the transportation of commercial items (as defined 
        in section 4(12) of such Act (41 U.S.C. 403(12))).''.
    (b) Civilian Agency Acquisitions.--
            (1) Restrictions on subcontractor sales to the united 
        states.--Section 303G of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 253g), as 
        amended by section 4042, is further amended by adding at the 
        end the following new subsection:
    ``(d) An agreement between the contractor in a contract for the 
acquisition of commercial items and a subcontractor under such contract 
that restricts sales by such subcontractor directly to persons other 
than the contractor may not be considered to unreasonably restrict 
sales by that subcontractor to the United States in violation of the 
provision included in such 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 such commercial items from that subcontractor.''.
            (2) Prohibition on contingent fees.--Section 304(a) of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 254(a)), as amended by section 4041, is further amended 
        by inserting before the period at the end of the sentence added 
        by section 4041 the following: ``or to a contract for the 
        acquisition of commercial items''.
    (c) Acquisitions Generally.--
            (1) Federal water pollution control act.--Section 508 of 
        the Federal Water Pollution Control Act (33 U.S.C. 1368) is 
        amended by adding at the end the following new subsection:
    ``(f)(1) No certification by a contractor, and no contract clause, 
may be required in the case of a contract for the acquisition of 
commercial items in order to implement a prohibition or requirement of 
this section or a prohibition or requirement issued in the 
implementation of this section.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.
            (2) Contract work hours and safety standards act.--The 
        Contract Work Hours and Safety Standards Act (title I of the 
        Work Hours and Safety Act of 1962 (40 U.S.C. 327 et seq.)) is 
        amended by adding at the end the following new section:
    ``Sec. 108. (a) No certification by a contractor, and no contract 
clause, may be required in the case of a contract for the acquisition 
of commercial items in order to implement a prohibition or requirement 
in this title.
    ``(b) In subsection (a), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.
            (3) Office of federal procurement policy act requirement 
        relating to procurement integrity certifications.--Section 
        27(e)(7) of the Office of Federal Procurement Policy Act (41 
        U.S.C. 423) is amended by adding at the end the following new 
        subparagraph:
    ``(C) This subsection does not apply to a contract for the 
acquisition of commercial items.''.
            (4) Certain provisions of the anti-kickback act of 1986.--
                    (A) Requirement for contract clause.--Section 7 of 
                the Anti-Kickback Act of 1986 (41 U.S.C. 57), as 
                amended by section 4052, is further amended by 
                inserting before the period at the end of subsection 
                (d) the following: ``or to a prime contract for the 
                acquisition of commercial items (as defined in section 
                4(12) of such Act (41 U.S.C. 403(12))).''.
                    (B) Inspection authority.--Section 8 of such Act 
                (41 U.S.C. 58) is amended by adding at the end the 
                following: ``This section does not apply with respect 
                to a prime contract for the acquisition of commercial 
                items (as defined in section 4(12) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 403(12))).''.
            (5) Drug-free workplace act of 1988.--The Drug-Free 
        Workplace Act of 1988 (subtitle D of title V of Public Law 100-
        690; 41 U.S.C. 701 et seq.), as amended by section 4057, is 
        further amended by inserting after the matter inserted by such 
        section 4057 the following: ``, other than a contract for the 
        procurement of commercial items (as defined in section 4(12) of 
        such Act (41 U.S.C. 403(12))),''.
            (6) Clean air act.--Section 306 of the Clean Air Act (42 
        U.S.C. 7606) is amended by adding at the end the following new 
        subsection:
    ``(f)(1) No certification by a contractor, and no contract clause, 
may be required in the case of a contract for the acquisition of 
commercial items in order to implement a prohibition or requirement of 
this section or a prohibition or requirement issued in the 
implementation of this section.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.
            (7) Merchant marine act, 1936.--Section 901(b) of the 
        Merchant Marine Act, 1936 (46 U.S.C. 1241(b)), as amended by 
        section 4058, is further amended by adding at the end the 
        following new paragraph:
    ``(4)(A) Paragraph (1) does not apply to a contract for 
transportation of commercial items on ocean vessels.
    ``(B) In subparagraph (A), the term `commercial item' has the 
meaning given such term in section 4(12) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12)).''.
            (8) Fly american requirements.--Section 1117 of the Federal 
        Aviation Act of 1958 (49 U.S.C. App. 1517) is amended by adding 
        at the end the following new subsection:
    ``(e)(1) No certification by a contractor, and no contract clause, 
may be required in the case of a contract for the transportation of 
commercial items in order to implement a requirement in this section.
    ``(2) In paragraph (1), the term `commercial item' has the meaning 
given such term in section 4(12) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(12)).''.

SEC. 8006. FLEXIBLE DEADLINES FOR SUBMISSION OF OFFERS OF COMMERCIAL 
              ITEMS.

    Section 18(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 416(a)) is amended by adding at the end the following new 
paragraph:
    ``(4) The requirements of paragraph (3)(B) do not apply to 
contracts for the purchase of commercial items. The Administrator shall 
prescribe for such contracts appropriate limits on the applicability of 
a deadline for submission of bids or proposals that is required by 
subsection (a)(1). Such limits shall be incorporated in the Federal 
Acquisition Regulation.''.

SEC. 8007. ADVOCATE FOR ACQUISITION OF COMMERCIAL AND NONDEVELOPMENTAL 
              ITEMS.

    (a) Establishment.--The Office of Federal Procurement Policy Act 
(41 U.S.C. 401 et seq.), as amended by section 8004, is further amended 
by adding at the end the following:

  ``advocate for acquisition of commercial and nondevelopmental items

    ``Sec. 34. (a) Establishment.--There is established in the Office 
of Federal Procurement Policy the position of Advocate for Acquisition 
of Commercial and Nondevelopmental Items.
    ``(b) Functions.--The Advocate for Acquisition of Commercial and 
Nondevelopmental Items shall--
            ``(1) monitor compliance by executive agencies with the 
        preference for the acquisition of commercial and 
        nondevelopmental items that is set forth in section 29;
            ``(2) make recommendations and proposals to the 
        Administrator regarding the reform of procurement statutes and 
        regulations to implement that preference; and
            ``(3) report to the Administrator on the prospective effect 
        of proposed legislation and regulations on the acquisition of 
        commercial items and nondevelopmental items.
    ``(c) Report.--The Administrator shall submit to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Operations of the House of Representatives an annual report describing 
for the year covered by the report all actions taken by the Office of 
Federal Procurement Policy to promote the acquisition of commercial 
items and other nondevelopmental items.''.
    (b) Responsibilities of the Advocate for Competition.--Section 
20(c) of such Act (41 U.S.C. 418(c)) is amended to read as follows:
    ``(c) The advocate for competition for each procuring activity 
shall be responsible for promoting full and open competition, promoting 
the acquisition of commercial items and other nondevelopmental items, 
and challenging barriers to such acquisition, including such barriers 
as unnecessarily restrictive statements of need, unnecessarily detailed 
specifications, and unnecessarily burdensome contract clauses.''.
    (c) Repeal of Superseded Provision.--Section 28 of such Act (41 
U.S.C. 424) is repealed.

SEC. 8008. PROVISIONS NOT AFFECTED.

    Nothing in this title shall be construed as amending, modifying, or 
superseding, or as intended to impair or restrict authorities or 
responsibilities under--
            (1) section 111 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 759), popularly referred to as 
        the ``Brooks Automatic Data Processing Act'';
            (2) title IX of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 541 et seq.), popularly 
        referred to as the ``Brooks Architect-Engineers Act'';
            (3) section 8(a) of the Small Business Act (15 U.S.C. 
        637(a)) or any other provision of that Act; or
            (4) the Act of June 25, 1938 (41 U.S.C. 46-48c), that was 
        revised and reenacted in the Act of June 23, 1971 (85 Stat. 
        77), popularly referred to as the ``Javits-Wagner-O'Day Act''.

SEC. 8009. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERNMENT USE OF 
              MARKET RESEARCH.

    (a) Report Required.--Not later than 2 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Congress a report on the use of market research by 
the Federal Government in support of the procurement of commercial 
items and nondevelopmental items.
    (b) Content of Report.--The report shall include the following:
            (1) A review of existing Federal Government market research 
        efforts to gather data concerning commercial and other 
        nondevelopmental items.
            (2) A review of the feasibility of creating a Government-
        wide data base for storing, retrieving, and analyzing market 
        data, including use of existing Federal Government resources.
            (3) Any recommendations for changes in law or regulations 
        that the Comptroller General considers appropriate.

                        TITLE IX--EFFECTIVE DATE

SEC. 9001. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act.

                                 <all>

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