`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2207 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 477

103d CONGRESS

  2d Session

                                S. 2207

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                June 20 (legislative day, June 7), 1994

                 Read twice and placed on the calendar





                                                       Calendar No. 477
103d CONGRESS
  2d Session
                                S. 2207

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 20 (legislative day, June 7), 1994

 Mr. Nunn from the Committee on Armed Services, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To revise, streamline, and reform 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 
Reform Act of 1994''.

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. Establishment or maintenance of alternative sources of 
                            supply.
Sec. 1003. Clarification of approval authority for use of procedures 
                            other than full and open competition.
Sec. 1004. Task order contracts for advisory and assistance services.
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 costs and fees in agency settlement of protests.
Sec. 1017. Two-phase subpart c--kinds of contracts
Sec. 1021. Secretarial determination regarding use of cost type or 
                            incentive contract.
Sec. subpart d--miscellaneous provisions for the encouragement of 
                              competition
Sec. 1031. Repeal of requirement for annual report by advocates for 
                            competition.
                 Psubpart a--competition requirementss
Sec. 1051. References to Federal Acquisition Regulation.
Sec. 1052. Establishment or maintenance of alternative sources of 
                            supply.
Sec. 1053. Clarification of approval authority for use of procedures 
                            other than full and open competition.
Sec. 1054. Task order contracts for advisory and assistance services.
Sec. 1055. Acquisition of expert services.
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 costs and fees in agency settlement of protests.
Sec. 1067. Two-phase subpart c--kinds of contracts
Sec. 1071. Agency head determination regarding use of cost type or 
                            incentive contract.
Sec. 1072. Multiyear contracting authority.
Sec. 1073. Severable services contracts crossing fiscal years.
Sec. 1074. Economy Act purchases.
                    Part III--Acquisitions Generally

Sec. 1091. Policy regarding consideration of contractor past 
                            performance.
Sec. 1092. 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. Exception for transfers between divisions, subsidiaries, and 
                            affiliates.
Sec. 1209. 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. Research projects.
Sec. 1302. 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.
               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.
                 Part II--Civilian Agency Acquisitions

Sec. 1551. Definitions.
Sec. 1552. Delegation of procurement functions.
Sec. 1553. Determinations and decisions.
Sec. 1554. Cooperative purchasing.
                   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.
Sec. 2192. Unallowability of entertainment costs under covered 
                            contracts.
                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. Exceptions to coverage.
Sec. 2302. 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.
                    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.
Sec. 2502. Shipbuilding claims.
                    Part II--Acquisitions Generally

Sec. 2551. Claims jurisdiction of United States district courts and the 
                            United States Court of Federal Claims.
Sec. 2552. Contract Disputes Act improvements.
Sec. 2553. Extension of alternative dispute resolution authority.
Sec. 2554. Expedited resolution of contract administration complaints.
Sec. 2555. Authority for District Courts to obtain advisory opinions 
                            from boards of contract appeals in certain 
                            cases.
         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 to designate certain major defense 
                            acquisition programs as 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. Director of Operational Test and Evaluation to report 
                            directly to Secretary of Defense.
Sec. 3012. Responsibility of Director of Operational Test and 
                            Evaluation for live fire testing.
Sec. 3013. Requirement for unclassified version of annual report on 
                            operational test and evaluation.
                   Subtitle C--Service Specific Laws

Sec. 3021. Gratuitous services of officers of certain reserve 
                            components.
Sec. 3022. Authority to rent samples, drawings, and other information 
                            to others.
Sec. 3023. Civil Reserve Air Fleet.
Sec. 3024. Exchange of personnel.
Sec. 3025. Scientific investigation and research for the Navy.
Sec. 3026. Construction of combatant and escort vessels and assignment 
                            of vessel projects.
Sec. 3027. Repeal of requirement for construction of vessels on Pacific 
                            coast.
Sec. 3028. Authority to transfer by gift a vessel stricken from Naval 
                            Vessel Register.
Sec. 3029. Naval salvage facilities.
 Subtitle D--Department of Defense Commercial and Industrial Activities

Sec. 3051. 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.
                      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 requirements regarding product evaluation 
                            activities.
Sec. 3083. Codification and revision of limitation on lease of vessels, 
                            aircraft, and vehicles.
Sec. 3084. Soft drink supplies for exchange stores.
Sec. 3085. Repeal of preference for recycled toner cartridges.
  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. Fast payment under simplified acquisition procedures.
Sec. 4014. Procurement notice.
Sec. 4015. Electronic commerce for Federal Government procurements.
   Part III--Applicability of Laws to Acquisitions Not in Excess of 
                    Simplified Acquisition Threshold

Sec. 4021. Future enacted procurement laws.
Sec. 4022. Armed services acquisitions.
Sec. 4023. Civilian agency acquisitions.
Sec. 4024. Acquisitions generally.
                     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. Acquisitions generally.
Sec. 4102. Acquisitions from small businesses.
Sec. 4103. Contracting program for certain small business concerns.
Sec. 4104. Procurement goals for small business concerns owned by 
                            women.
Sec. 4105. Development of definitions regarding certain small business 
                            concerns.
               Subtitle C--Miscellaneous Acquisition Laws

Sec. 4151. Prohibition on use of funds for documenting economic or 
                            employment impact of certain acquisition 
                            programs.
Sec. 4152. Restriction on use of noncompetitive procedures for 
                            procurement from a particular source.
                    TITLE V--ACQUISITION MANAGEMENT

                Subtitle A--Armed Services Acquisitions

Sec. 5001. Performance based management.
Sec. 5002. Results oriented acquisition program cycle.
Sec. 5003. Defense acquisition pilot program designations.
                Subtitle B--Civilian Agency Acquisitions

Sec. 5051. Performance based management.
Sec. 5052. Results-oriented acquisition process.
                       Subtitle C--Miscellaneous

Sec. 5091. Contractor exceptional performance awards.
Sec. 5092. 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. Interests of Members of Congress.
Sec. 6054. Waiting period for significant changes proposed for 
                            acquisition regulations.
                  Subtitle C--Whistleblower Protection

Sec. 6101. Armed services procurements.
Sec. 6102. Governmentwide whistleblower protections for contractor 
                            employees.
                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. Advocates 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--MISCELLANEOUS PROVISIONS

Sec. 9001. Comptroller General review of the provision of legal advice 
                            for inspectors general.
Sec. 9002. Cost savings for official travel.
Sec. 9003. Prompt resolution of audit recommendations.
Sec. 9004. Uniform suspension and debarment.
              TITLE X--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 10001. Effective dates.
Sec. 10002. Implementing regulations.
Sec. 10003. Evaluation by the Comptroller General.
Sec. 10004. Data collection through the Federal procurement data 
                            system.
  TITLE IX--WAIVER OF THE APPLICATION OF THE PREVAILING WAGE-SETTING 
                       REQUIREMENTS TO VOLUNTEERS

Sec. 11001. Short title.
Sec. 11002. Purpose.
Sec. 11003. Waiver.
Sec. 11004. Report.

                      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. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE SOURCES OF 
              SUPPLY.

    Section 2304(b) of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``or'' at the end of 
                subparagraph (B);
                    (B) by striking out the period at the end of 
                subparagraph (C) and inserting in lieu thereof a 
                semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
            ``(D) would ensure the continuous availability of a 
        reliable source of supply of such property or service;
            ``(E) would satisfy projected needs for such property or 
        service determined on the basis of a history of high demand for 
        the property or service; or
            ``(F) in the case of medical supplies, safety supplies, or 
        emergency supplies, would satisfy a critical need for such 
        supplies.'';
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (3) 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
            (4) in paragraph (4), as redesignated by paragraph (2), by 
        striking out ``paragraphs (1) and (2)'' and inserting in lieu 
        thereof ``paragraphs (1) and (3)''.

SEC. 1003. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF PROCEDURES 
              OTHER THAN FULL AND OPEN COMPETITION.

    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. TASK ORDER CONTRACTS FOR ADVISORY AND ASSISTANCE SERVICES.

    (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 order contracts for advisory and assistance services
    ``(a) Authority To Award.--(1) Subject to the requirements of this 
section, the head of an agency may enter into a contract for advisory 
and assistance services that does not procure or specify a firm 
quantity of services (other than a minimum or maximum quantity) and 
that provides for the issuance of task orders during the specified 
period of the contract.
    ``(2) Except as provided in subsection (h), the head of an agency 
may enter into a contract described in paragraph (1) 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 
5 years unless a longer period is specifically authorized in a law that 
is applicable to such contract.
    ``(c) Contract 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 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 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 services to two or more sources if the solicitation states 
that the head of the agency has the option to do so.
    ``(B) If, in the case of a contract for advisory and assistance 
services to be entered into under the authority of this section, the 
contract period is to exceed 3 years and the contract amount is 
estimated to exceed $10,000,000 (including all options), the 
solicitation shall--
            ``(i) provide for a multiple award authorized under 
        subparagraph (A); and
            ``(ii) include a statement that the head of the agency may 
        also elect 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.
    ``(C) Subparagraph (B) does not apply in the case of a solicitation 
for which the head of an agency determines in writing that, because the 
services required under the contract are unique or highly specialized, 
it is not practicable to award more than one contract.
    ``(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) Order Procedures.--(1) The following actions are not required 
for a 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 pursuant to subsection 
(c)(4), all contractors awarded such contracts shall be provided a fair 
opportunity to be considered, pursuant to procedures set forth in the 
contracts, for each task order in excess of $2,500 that is to be issued 
under any of the contracts unless--
            ``(i) the agency's need for the services ordered is of such 
        unusual urgency that competition would result in unacceptable 
        delays in fulfilling the agency's needs;
            ``(ii) only one such contractor is capable of providing the 
        services required at the level of quality required because the 
        services ordered are unique or so highly specialized;
            ``(iii) the 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 task order already issued on a 
        competitive basis; or
            ``(iv) the order must be placed with a particular 
        contractor in order to satisfy a minimum guarantee.
    ``(B) When a task order is issued in accordance with 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 
or proposed issuance of a 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 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)).
    ``(4)(A) Notwithstanding the limitation on the contract period set 
forth in subsection (b) or in a solicitation or contract pursuant to 
subsection (c), a contract entered into by the head of an agency under 
this section may be extended on a sole-source basis for a period not 
exceeding 6 months if the agency head determines that--
            ``(i) the award of a follow-on contract has been delayed by 
        circumstances that were not reasonably foreseeable at the time 
        the initial contract was entered into; and
            ``(ii) the extension is necessary in order to ensure 
        continuity of the receipt of services pending the award of, and 
        commencement of performance under, the follow-on contract.
    ``(B) A contract may be extended under the authority of 
subparagraph (A) only once and only in accordance with the limitations 
and requirements of this subsection.
    ``(f) Task Order Ombudsman.--Each head of an agency who awards 
multiple contracts pursuant to 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 all 
of the contractors are afforded a fair opportunity to be considered for 
task orders 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.
    ``(g) Inapplicability to Certain Contracts.--This section does not 
apply to a contract for the acquisition of property or services that 
includes acquisition of advisory and assistance services if the head of 
an agency entering into such contract determines that, under the 
contract, advisory and assistance services are necessarily incident to, 
and not a significant component of, the contract.
    ``(h) Relationship to Other Contracting Authority.--Nothing in this 
section may be construed to limit the authority of the head of an 
agency to enter into single or multiple task order contracts, or single 
or multiple delivery order contracts, for property or services (other 
than advisory and assistance services) under other provisions of this 
chapter or under any other provision of law.
    ``(i) Advisory and Assistance Services Defined.--In this section, 
the term `advisory and assistance services' has the meaning given such 
term in section 1105(g) of title 31.''.
            (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 order contracts for advisory and assistance services.''.
    (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).

SEC. 1005. ACQUISITION OF EXPERT SERVICES.

    Section 2304(c)(3) of title 10, United States Code, is amended--
            (1) by striking out ``or (B)'' and inserting in lieu 
        thereof ``(B)''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, or (C) to procure the services of an expert for 
        use, in any litigation or dispute (including any reasonably 
        foreseeable litigation or dispute) involving the Federal 
        Government, in any trial, hearing, or proceeding before any 
        court, administrative tribunal, or agency, or in any part of an 
        alternative dispute resolution process, whether or not the 
        expert is expected to testify''.

        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, prior 
        experience, and past performance 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 cost or price, when combined, are--
                    ``(I) significantly more important than cost or 
                price;
                    ``(II) approximately equal in importance to cost or 
                price; or
                    ``(III) significantly less important than cost or 
                price.
    ``(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 cost or price.''.

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 for 
options to purchase additional property 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: ``As soon 
as practicable after the date of contract award, the head of the agency 
shall, in accordance with procedures prescribed in the Federal 
Acquisition Regulation, 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 ``source and shall promptly notify'' and inserting in lieu 
thereof ``source. As soon as practicable after the date of contract 
award, the head of the agency shall, in accordance with procedures 
prescribed in the Federal Acquisition Regulation, 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 the head of an agency on the 
basis of competitive proposals, an unsuccessful offeror, upon written 
request received by the agency within 3 days after the date on which 
the unsuccessful offeror receives the notification of the contract 
award, shall be debriefed and furnished the basis for the selection 
decision and contract award. An employee of the agency shall debrief 
the offeror promptly after receipt of the request by the agency.
    ``(B) The debriefing shall include, at a minimum--
            ``(i) the agency's evaluation of the significant weak or 
        deficient factors in the offeror's offer;
            ``(ii) the overall evaluated cost and technical rating of 
        the offer of the contractor awarded the contract and the 
        overall evaluated cost and technical rating of the offer of the 
        debriefed offeror;
            ``(iii) the overall ranking of all offers;
            ``(iv) a summary of the rationale for the award;
            ``(v) in the case of a proposal for a commercial item other 
        than a commercial component, the make and model of the item 
        being provided in accordance with 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 new best 
and final offers requested for that contract, the agency shall make 
available to all offerors--
            ``(i) the information provided in debriefings under this 
        paragraph regarding the offer of the contractor awarded the 
        contract; and
            ``(ii) the same information that would have been provided 
        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 procuring 
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 section 111 of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
759).''.

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 
comply with the requirements of law or regulation, the head of the 
agency may take--
            ``(1) any action set out in subparagraphs (A) through (F) 
        of subsection (b)(1) of section 3554 of title 31; and
            ``(2) may pay costs described in paragraph (1) of section 
        3554(c) of title 31 within the limits referred to in paragraph 
        (2) of such section.''.

SEC. 1017. TWO-PHASE SELECTION PROCEDURES.

    (a) Procedures Authorized.--Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2305 the following new 
section:
``Sec. 2305a. Two-phase selection procedures
    ``(a) Procedures Authorized.--The head of an agency may use two-
phase selection procedures for entering into a contract for the 
acquisition of property or services (other than a construction 
contract) when the head of the agency determines that three or more 
offers will be received for such contract, substantial design work must 
be performed before an offeror can develop a price or cost proposal for 
such contract, and the offerors will incur a substantial amount of 
expenses in preparing the offers.
    ``(b) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The head of the agency solicits proposals that--
                    ``(A) include information on the offerors'--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; or
                            ``(ii) cost or price information.
            ``(2) The head of the agency evaluates the proposals on the 
        basis of evaluation criteria set forth in the solicitation, 
        except that the head of the agency does not consider cost-
        related or price-related evaluation factors.
            ``(3) The head of the agency selects at least three 
        offerors as the most highly qualified to provide the property 
        or services under the contract and requests the selected 
        offerors to submit competitive proposals that include cost or 
        price information.
            ``(4) The head of the agency awards the contract in 
        accordance with section 2305(b)(4) of this title.
    ``(c) Solicitation To State Number of Offerors To Be Selected for 
Phase Two Requests for Competitive Proposals.--A solicitation issued 
pursuant to subsection (b)(1) shall state the maximum number of 
offerors that are to be selected to submit competitive proposals 
pursuant to subsection (b)(3).
    ``(d) Resource Comparison Criterion Required.--In using two-phase 
selection procedures for entering into a contract, the head of the 
agency shall establish a resource criterion or a financial criterion 
applicable to the contract in order to provide a consistent basis for 
comparing the offerors and their proposals.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2305 the following:

``2305a. Two-phase selection procedures.''.

                     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. 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. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE SOURCES OF 
              SUPPLY.

    Section 303(b) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``or'' at the end of 
                subparagraph (B);
                    (B) by striking out the period at the end of 
                subparagraph (C) and inserting in lieu thereof a 
                semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
            ``(D) would ensure the continuous availability of a 
        reliable source of supply of such property or service;
            ``(E) would satisfy projected needs for such property or 
        service determined on the basis of a history of high demand for 
        the property or service; or
            ``(F) in the case of medical supplies, safety supplies, or 
        emergency supplies, would satisfy a critical need for such 
        supplies.'';
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (3) 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
            (4) in paragraph (4), as redesignated by paragraph (2), by 
        striking out ``paragraphs (1) and (2)'' and inserting in lieu 
        thereof ``paragraphs (1) and (3)''.

SEC. 1053. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF PROCEDURES 
              OTHER THAN FULL AND OPEN COMPETITION.

    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. TASK ORDER CONTRACTS FOR ADVISORY AND ASSISTANCE SERVICES.

    (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 order contracts for advisory and assistance services

    ``Sec. 303H. (a) Authority To Award.--(1) Subject to the 
requirements of this section, the head of an executive agency may enter 
into a contract for advisory and assistance services that does not 
procure or specify a firm quantity of services (other than a minimum or 
maximum quantity) and that provides for the issuance of task orders 
during the specified period of the contract.
    ``(2) Except as provided in subsection (h), the agency head may 
enter into a contract described in paragraph (1) 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 
5 years unless a longer period is specifically authorized in a law that 
is applicable to such contract.
    ``(c) Contract 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 the 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 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 
services to two or more sources if the solicitation states that the 
agency head has the option to do so.
    ``(B) If, in the case of a contract for advisory and assistance 
services to be entered into under the authority of this section, the 
contract period is to exceed 3 years and the contract amount is 
estimated to exceed $10,000,000 (including all options), the 
solicitation shall--
            ``(i) provide for a multiple award authorized 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.
    ``(C) Subparagraph (B) does not apply in the case of a solicitation 
for which the agency head determines in writing that, because the 
services required under the contract are unique or highly specialized, 
it is not practicable to award more than one contract.
    ``(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) Order Procedures.--(1) The following actions are not required 
for a 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 pursuant to subsection 
(c)(4), all contractors awarded such contracts shall be provided a fair 
opportunity to be considered, pursuant to procedures set forth in the 
contracts, for each task order in excess of $2,500 that is to be issued 
under any of the contracts unless--
            ``(i) the agency's need for the services ordered is of such 
        unusual urgency that competition would result in unacceptable 
        delays in fulfilling the agency's needs;
            ``(ii) only one such contractor is capable of providing the 
        services required at the level of quality required because the 
        services ordered are unique or highly specialized;
            ``(iii) the 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 task order already issued on a 
        competitive basis; or
            ``(iv) the order must be placed with a particular 
        contractor in order to satisfy a minimum guarantee.
    ``(B) When a task order is issued in accordance with 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 
or proposed issuance of a 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 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)).
    ``(4)(A) Notwithstanding the limitation on the contract period set 
forth in subsection (b) or in a solicitation or contract pursuant to 
subsection (c), a contract entered into by the head of an agency under 
this section may be extended on a sole-source basis for a period not 
exceeding 6 months if the agency head determines that--
            ``(i) the award of a follow-on contract has been delayed by 
        circumstances that were not reasonably foreseeable at the time 
        the initial contract was entered into; and
            ``(ii) the extension is necessary in order to ensure 
        continuity of the receipt of services pending the award of, and 
        commencement of performance under, the follow-on contract.
    ``(B) A contract may be extended under the authority of 
subparagraph (A) only once and only in accordance with the limitations 
and requirements of this subsection.
    ``(f) Task Order Ombudsman.--Each agency head who awards multiple 
contracts pursuant to 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 all of the 
contractors are afforded a fair opportunity to be considered for task 
orders 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.
    ``(g) Inapplicability to Certain Contracts.--This section does not 
apply to a contract for the acquisition of property or services that 
includes acquisition of advisory and assistance services if the agency 
head entering into such contract determines that, under the contract, 
advisory and assistance services are necessarily incident to, and not a 
significant component of, the contract.
    ``(h) Relationship to Other Contracting Authority.--Nothing in this 
section may be construed to limit the authority of the head of an 
agency to enter into single or multiple task order contracts, or single 
or multiple delivery order contracts, for goods or services (other than 
advisory and assistance services) under other provisions of this title 
or under any other provision of law.
    ``(i) Advisory and Assistance Services Defined.--In this section, 
the term `advisory and assistance services' has the meaning given such 
term in section 1105(g) of title 31, United States Code.''.
    (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 order contracts for advisory and assistance 
                            services.''.

SEC. 1055. ACQUISITION OF EXPERT SERVICES.

    (a) Exception to Requirement for Use of Competitive Procedures.--
Section 303(c)(3) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(c)) is amended--
            (1) by striking out ``or (B)'' and inserting in lieu 
        thereof ``(B)''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, or (C) to procure the services of an expert for 
        use, in any litigation or dispute (including any reasonably 
        foreseeable litigation or dispute) involving the Federal 
        Government, in any trial, hearing, or proceeding before any 
        court, administrative tribunal, or agency, or in any part of an 
        alternative dispute resolution process, whether or not the 
        expert is expected to testify''.
    (b) Procurement Notice.--
            (1) Amendment of office of federal procurement policy 
        act.--Section 18(c) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 416(c)) is amended--
                    (A) by striking out ``or'' at the end of 
                subparagraph (D);
                    (B) by striking out the period at the end of 
                subparagraph (E) and inserting in lieu thereof ``; 
                or''; and
                    (C) by adding at the end the following:
            ``(F) the procurement is for the services of an expert for 
        use in any litigation or dispute (including any reasonably 
        foreseeable litigation or dispute) involving the Federal 
        Government in any trial, hearing, or proceeding before any 
        court, administrative tribunal, or agency, or in any part of an 
        alternative dispute resolution process, whether or not the 
        expert is expected to testify.''.
            (2) Amendment of small business act.--Section 8(g) of the 
        Small Business Act (15 U.S.C. 637(c)) is amended--
                    (A) by striking out ``or'' at the end of 
                subparagraph (D);
                    (B) by striking out the period at the end of 
                subparagraph (E) and inserting in lieu thereof ``; 
                or''; and
                    (C) by adding at the end the following:
            ``(F) the procurement is for the services of an expert for 
        use in any litigation or dispute (including preparation for any 
        foreseeable litigation or dispute) that involves or could 
        involve the Federal Government in any trial, hearing, or 
        proceeding before any court, administrative tribunal, or 
        agency, or in any part of an alternative dispute resolution 
        process, whether or not the expert is expected to testify.''.
    (c) 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 provision of law set out in quotes in that section.
            (2) Section 529 of Public Law 102-393 (106 Stat. 1761) and 
        the matters inserted and added by that section.

SEC. 1056. CONTINUED OCCUPANCY OF LEASED SPACE.

    Section 303(d) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(d)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2)(A) For the purposes of applying subsection (c)(1) in the case 
of a follow-on lease to be entered into for the purpose of providing 
for continued occupancy of particular space in leased real property by 
a Federal agency, space may be treated as being available only from the 
lessor of such space and may be acquired through the use of procedures 
other than competitive procedures (without the justification otherwise 
required by subsection (f)) if a written determination is made by the 
contracting officer that--
            ``(i) the occupying agency has a continuing need for the 
        space;
            ``(ii) the space meets the needs of the agency; and
            ``(iii) the lessor is willing to continue to provide the 
        space at a fair market price determined by the contracting 
        officer on the basis of a market survey or an appraisal 
        conducted in accordance with generally accepted real property 
        appraisal standards.
    ``(B) The authority under subparagraph (A) to use procedures other 
than competitive procedures to enter into a follow-on lease may be 
exercised not more than once to provide for continued occupancy of 
particular space in real property by a particular Federal agency. The 
period of such follow-on lease may not exceed 5 years.
    ``(C) Nothing in this paragraph may be construed to prohibit the 
use of procedures other than competitive procedures to enter into a 
follow-on lease of real property for continued occupancy of particular 
space in real property by a Federal agency when an exception set forth 
in subsection (c) applies and the use of such procedures is justified 
and approved in accordance with subsection (f).''.

        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, prior 
        experience, and past performance 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 cost or price, when combined, are--
                    ``(i) significantly more important than cost or 
                price;
                    ``(ii) approximately equal in importance to cost or 
                price; or
                    ``(iii) significantly less important than cost or 
                price.
    ``(2) 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.'';
                    (B) by striking out paragraphs (2) and (3) and by 
                redesignating paragraph (4) as paragraph (2); and
                    (C) in paragraph (2), as redesignated by 
                subparagraph (B), by inserting ``cost or'' before 
                ``price'' in the first sentence.
    (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 for 
options to purchase additional property 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: ``As soon as 
practicable after the date of contract award, the agency head shall, in 
accordance with procedures prescribed in the Federal Acquisition 
Regulation, notify all 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 ``source and shall 
promptly notify'' and inserting in lieu thereof ``source. As soon as 
practicable after the date of contract award, the agency head shall, in 
accordance with procedures prescribed in the Federal Acquisition 
Regulation, 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 the head of an executive 
agency on the basis of competitive proposals, an unsuccessful offeror, 
upon written request received by the agency within 3 days after the 
date on which the unsuccessful offeror receives the notification of the 
contract award, shall be debriefed and furnished the basis for the 
selection decision and contract award. An employee of the executive 
agency shall debrief the offeror promptly after receipt of the request 
by the agency.
    ``(2) The debriefing shall include, at a minimum--
            ``(A) the executive agency's evaluation of the significant 
        weak or deficient factors in the offeror's offer;
            ``(B) the overall evaluated cost and technical rating of 
        the offer of the contractor awarded the contract and the 
        overall evaluated cost and technical rating of the offer of the 
        debriefed offeror;
            ``(C) the overall ranking of all offers;
            ``(D) a summary of the rationale for the award;
            ``(E) in the case of a proposal for a commercial item other 
        than a commercial component, the make and model of the item 
        being provided in accordance with 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 
new best and final offers requested for that contract, the agency head 
shall make available to all offerors--
            ``(A) the information provided in debriefings under this 
        subsection regarding the offer of the contractor awarded the 
        contract; and
            ``(B) the same information that would have been provided 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 
procuring 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 section 111 of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
759).''.

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 1065, 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 comply with the 
requirements of law or regulation, the agency head may take--
            ``(1) any action set out in subparagraphs (A) through (F) 
        of subsection (b)(1) of section 3554 of title 31, United States 
        Code; and
            ``(2) may pay costs described in paragraph (1) of section 
        3554(c) of such title within the limits referred to in 
        paragraph (2) of such section.''.

SEC. 1067. TWO-PHASE SELECTION PROCEDURES.

    (a) Procedures Authorized.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended 
by section 1054, is further amended by inserting after section 303H the 
following new section:

                    ``two-phase selection procedures

    ``Sec. 303I. (a) Procedures Authorized.--The head of an executive 
agency may use two-phase selection procedures for entering into a 
contract for the acquisition of property or services (other than a 
construction contract) when the agency head determines that three or 
more offers will be received for such contract, substantial design work 
must be performed before an offeror can develop a price or cost 
proposal for such contract, and the offerors will incur a substantial 
amount of expenses in preparing the offers.
    ``(b) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The agency head solicits proposals that--
                    ``(A) include information on the offerors'--
                            ``(i) technical approach; and
                            ``(ii) technical qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; or
                            ``(ii) cost or price information.
            ``(2) The agency head evaluates the proposals on the basis 
        of evaluation criteria set forth in the solicitation, except 
        that the agency head does not consider cost-related or price-
        related evaluation factors.
            ``(3) The agency head selects at least three offerors as 
        the most highly qualified to provide the property or services 
        under the contract and requests the selected offerors to submit 
        competitive proposals that include cost or price information.
            ``(4) The agency head awards the contract in accordance 
        with section 303B(d).
    ``(c) Solicitation To State Number of Offerors To Be Selected for 
Phase Two Requests for Competitive Proposals.--A solicitation issued 
pursuant to subsection (b)(1) shall state the maximum number of 
offerors that are to be selected to submit competitive proposals 
pursuant to subsection (b)(3).
    ``(d) Resource Comparison Criterion Required.--In using two-phase 
selection procedures for entering into a contract, the agency head 
shall establish a resource criterion or a financial criterion 
applicable to the contract in order to provide a consistent basis for 
comparing the offerors and their proposals.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act, as amended by section 1054, is further amended by 
inserting after the item relating to section 303H the following new 
item:

``Sec. 303I. Two-phase selection procedures.''.

                     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.

SEC. 1072. MULTIYEAR CONTRACTING AUTHORITY.

    (a) Authority.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended 
by section 1067, is further amended by inserting after section 303I the 
following new section:

                         ``multiyear contracts

    ``Sec. 303J. (a) Authority.--The head of an executive agency may 
enter into a multiyear contract for the acquisition of property or 
services if--
            ``(1) funds are available and obligated for such contract, 
        for the full period of the contract or for the first fiscal 
        year in which the contract is in effect, and for the estimated 
        costs associated with any necessary termination of such 
        contract; and
            ``(2) the agency head determines that--
                    ``(A) the need for the property or services is 
                reasonably firm and continuing over the period of the 
                contract; and
                    ``(B) a multiyear contract will serve the best 
                interests of the United States by encouraging effective 
                competition or promoting economy in administration, 
                performance, and operation of the agency's programs.
    ``(b) Termination Clause.--A multiyear contract entered into under 
the authority of this section shall include a clause that provides that 
the contract shall be terminated if funds are not made available for 
the continuation of such contract in any fiscal year covered by the 
contract. Amounts available for paying termination costs shall remain 
available for such purpose until the costs associated with termination 
of the contract are paid.
    ``(c) Rule of Construction.--Nothing in this section is intended to 
modify or affect any other provision of law that authorizes multiyear 
contracts.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act, as amended by section 1067, is further amended by 
inserting after the item relating to section 303I the following new 
item:

``Sec. 303J. Multiyear contracts.''.

SEC. 1073. SEVERABLE SERVICES CONTRACTS CROSSING FISCAL YEARS.

    (a) Authority.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended 
by section 1072, is further amended by inserting after section 303J the 
following new section:

    ``severable services contracts for periods crossing fiscal years

    ``Sec. 303K. (a) Authority.--The head of an executive agency may 
enter into a contract for procurement of severable services for a 
period that begins in one fiscal year and ends in the next fiscal year 
if (without regard to any option to extend the period of the contract) 
the contract period does not exceed one year.
    ``(b) Obligation of Funds.--Funds made available for a fiscal year 
may be obligated for the total amount of a contract entered into under 
the authority of subsection (a).''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act, as amended by section 1072, is further amended by 
inserting after the item relating to section 303J the following new 
item:

``Sec. 303K. Severable services contracts for periods crossing fiscal 
                            years.''.

SEC. 1074. ECONOMY ACT PURCHASES.

    (a) Regulations Required.--Not later than six months after the date 
of the enactment of this Act, the Federal Acquisition Regulation shall 
be revised to include regulations governing the exercise of the 
authority under section 1535 of title 31, United States Code, for 
Federal agencies to purchase goods and services under contracts entered 
into or administered by other agencies.
    (b) Content of Regulations.--The regulations prescribed pursuant to 
subsection (a) shall--
            (1) require that each purchase described in subsection (a) 
        be approved in advance by a contracting officer of the ordering 
        agency with authority to contract for the goods or services to 
        be purchased or by another official in a position specifically 
        designated by regulation to approve such purchase;
            (2) provide that such a purchase of goods or services may 
        be made only if--
                    (A) the purchase is appropriately made under a 
                contract that the agency filling the purchase order 
                entered into, before the purchase order, in order to 
                meet the requirements of such agency for the same or 
                similar goods or services;
                    (B) the agency filling the purchase order is better 
                qualified to enter into or administer the contract for 
                such goods or services by reason of capabilities or 
                expertise that is not available within the ordering 
                agency; or
                    (C) the agency or unit filling the order is 
                specifically authorized by law or regulations to 
                purchase such goods or services on behalf of other 
                agencies;
            (3) prohibit any such purchase under a contract or other 
        agreement entered into or administered by an agency not covered 
        by the provisions of chapter 137 of title 10, United States 
        Code, or title III of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 251 et seq.) and not covered by 
        the Federal Acquisition Regulation unless the purchase is 
        approved in advance by the senior procurement official 
        responsible for purchasing by the ordering agency; and
            (4) prohibit any payment to the agency filling a purchase 
        order of any fee that exceeds the actual cost or, if the actual 
        cost is not known, the estimated cost of entering into and 
        administering the contract or other agreement under which the 
        order is filled.
    (c) Monitoring System Required.--The Administrator for Federal 
Procurement Policy shall ensure that, not later than one year after the 
date of the enactment of this Act, systems for collecting and 
evaluating procurement data are capable of collecting and evaluating 
appropriate data on procurements conducted under the regulations 
prescribed pursuant to subsection (a).
    (d) Termination.--This section shall cease to be effective one year 
after the date on which final regulations prescribed pursuant to 
subsection (a) take effect.

                    PART III--ACQUISITIONS GENERALLY

SEC. 1091. POLICY REGARDING CONSIDERATION OF CONTRACTOR PAST 
              PERFORMANCE.

    (a) Policy.--Section 2 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 401) is amended--
            (1) by striking out ``and'' at the end of paragraph (12);
            (2) by striking out the period at the end of paragraph (13) 
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(14) establishing policies and procedures that encourage 
        the consideration of contractors' past performance in the 
        selection of contractors.''.
    (b) Guidance Required.--Section 6 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 405) is amended by adding at the end 
the following:
    ``(j)(1) Congress makes the following findings:
            ``(A) Past contract performance of an offeror is one of the 
        relevant factors that contracting officials of executive 
        agencies should consider in entering into contracts.
            ``(B) It is appropriate for a contracting official to 
        consider past contract performance of an offeror as an 
        indicator of the likelihood that the offeror will successfully 
        perform a contract to be entered into by that official.
    ``(2) The Administrator shall prescribe for executive agencies 
guidance regarding consideration of the past contract performance of 
offerors in awarding contracts. The guidance shall include--
            ``(A) standards for evaluating past performance with 
        respect to cost (when appropriate), schedule, compliance with 
        technical or functional specifications, and other relevant 
        performance factors that facilitate consistent and fair 
        evaluation by all executive agencies;
            ``(B) policies for the collection and maintenance of 
        information on past contract performance that, to the maximum 
        extent practicable, facilitate automated collection, 
        maintenance, and dissemination of information and provide for 
        ease of collection, maintenance, and dissemination of 
        information by other methods, as necessary; and
            ``(C) policies for ensuring that--
                    ``(i) offerors are afforded an opportunity to 
                submit relevant information on past contract 
                performance, including performance under contracts 
                entered into by the executive agency concerned, 
                contracts entered into by other departments and 
                agencies of the Federal Government, contracts entered 
                into by agencies of State and local governments, and 
                contracts entered into by commercial customers; and
                    ``(ii) such information submitted by offerors is 
                considered.
    ``(3) The Administrator shall prescribe for all executive agencies 
guidance regarding the period for which information on past performance 
of offerors should be maintained and considered.
    ``(4) In the case of an offeror regarding whom there is no 
information on past contract performance or regarding whom information 
on past contract performance is not available, the offeror may not be 
evaluated favorably or unfavorably on the factor of past contract 
performance.''.

SEC. 1092. 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.

    (a) Repeal of Reversion to Lower Threshold.--Paragraph (1)(A) of 
section 2306a(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,''.
    (b) Adjustments for Changes in Dollar Values.--Section 2306a(a) of 
such title is amended by adding at the end the following new 
subparagraph:
    ``(7) Effective on October 1 of each year that is divisible by 5, 
each amount set forth in paragraph (1) shall be adjusted to the amount 
that is equal to the fiscal year 1994 constant dollar value of the 
amount set forth. Any amount, as so adjusted, that is not evenly 
divisible by $50,000 shall be rounded to the nearest multiple of 
$50,000. In the case of an amount that is evenly divisible by $25,000 
but not evenly divisible by $50,000, the amount shall be rounded to the 
next higher multiple of $50,000.''.

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

    (a) Exceptions Stated.--Subsection (b) of section 2306a of title 
10, United States Code, is amended to read as follows:
    ``(b) Exceptions.--(1) Submission of cost and pricing data shall 
not be required under subsection (a)--
            ``(A) in the case of a contract, a subcontract, or a 
        contract or subcontract modification, 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 customarily 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 
        concerned determines that the requirements of this section may 
        be waived and states in writing the reasons for such 
        determination.
    ``(2) Submission of cost and pricing data shall not be required 
under subsection (a) in the case of a modification of a contract or 
subcontract for a commercial item if--
            ``(A) the contract or subcontract being modified is a 
        contract or subcontract for which submission of cost and 
        pricing data may not be required by reason of paragraph (1)(A);
            ``(B) the modification is not a case in which paragraph 
        (1)(A) prohibits the head of an agency from requiring 
        submission of cost and pricing data; and
            ``(C) 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.''.
    (b) Conforming Amendment to Reference.--Subsection (a)(5) of such 
section is amended by striking out ``subsection (b)(2)'' and inserting 
in lieu thereof ``subsection (b)(1)(B)''.

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

    Subsection (c) of section 2306a of title 10, United States Code, is 
amended to read as follows:
    ``(c) Limitation on Authority To Require Cost or Pricing Data.--
When cost or pricing data are not required to be submitted under this 
section by reason of a $500,000 threshold set forth in subsection (a) 
(as adjusted pursuant to paragraph (7) of such subsection) or by reason 
of an exception set forth in paragraph (1)(A) or (2) of subsection (b), 
submission of such data may not be required unless the head of an 
agency concerned determines that such data are necessary for the 
evaluation by the agency of the reasonableness of the price of the 
contract or subcontract to which the data relate. In any case in which 
the head of an agency requires such data to be submitted in accordance 
with the preceding sentence, the agency head shall document in writing 
the reasons for such requirement.''.

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 
conduct procurements of commercial items on a competitive basis.
    ``(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 shall nonetheless exempt a contract, subcontract, 
or modification of a contract or subcontract under the procurement from 
the requirements of subsection (a) if the contracting officer obtains, 
in accordance with standards and procedures set forth in the Federal 
Acquisition Regulation, information on prices at which the same or 
similar items have been sold in the commercial market that is adequate 
for evaluating the reasonableness of the price of the contract or 
subcontract for a commercial item, or the contract or subcontract 
modification, as the case may be. The contracting officer may obtain 
such information from the offeror or contractor or, when such 
information is not available from that source, from another source or 
sources.
    ``(3)(A) In accordance with procedures prescribed in the Federal 
Acquisition Regulation, 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 the agency is receiving 
accurate information required under this section.
    ``(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.--The Secretary 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 an applicable $500,000 threshold set forth in 
subsection (a) (as adjusted pursuant to paragraph (7) of such 
subsection). Such information, at a minimum, shall include appropriate 
information on the prices at which the same or similar items have 
previously been sold that is adequate for evaluating the reasonableness 
of the price of the proposed contract or subcontract for the 
procurement.''.

SEC. 1207. CONSISTENCY OF TIME REFERENCES.

    Section 2306a of title 10, United States Code, as amended by 
section 1204(1), 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. EXCEPTION FOR TRANSFERS BETWEEN DIVISIONS, SUBSIDIARIES, AND 
              AFFILIATES.

    Subsection (i) of section 2306a of title 10, United States Code, as 
redesignated by section 1204(1), is amended to read as follows:
    ``(i) Definitions.--In this section:
            ``(1) 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), a prudent buyer or seller 
        would reasonably expect to affect price negotiations 
        significantly. Such term does not include information that is 
        judgmental, but does include the factual information from which 
        a judgment was derived.
            ``(2) The term `subcontract' includes a transfer of 
        commercial items between divisions, subsidiaries, or affiliates 
        of a contractor.''.

SEC. 1209. REPEAL OF SUPERSEDED PROVISION.

    Subsections (b) and (c) of section 803 of Public Law 101-510 (10 
U.S.C. 2306a note) are 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 1994, 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 1994, 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 1994, 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 1994, 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 in accordance 
with 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 in accordance with 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)(1)(B) 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 1994, 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 
in accordance with subsection (c).
    ``(7) Effective on October 1 of each year that is divisible by 5, 
each amount set forth in paragraph (1) shall be adjusted to the amount 
that is equal to the fiscal year 1994 constant dollar value of the 
amount set forth. Any amount, as so adjusted, that is not evenly 
divisible by $50,000 shall be rounded to the nearest multiple of 
$50,000. In the case of an amount that is evenly divisible by $25,000 
but not evenly divisible by $50,000, the amount shall be rounded to the 
next higher multiple of $50,000.
    ``(b) Exceptions.--(1) Submission of cost and pricing data shall 
not be required under subsection (a)--
            ``(A) in the case of a contract, a subcontract, or a 
        contract or subcontract modification, 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 customarily 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 concerned 
        determines that the requirements of this section may be waived 
        and states in writing the reasons for such determination.
    ``(2) Submission of cost and pricing data shall not be required 
under subsection (a) in the case of a modification of a contract or 
subcontract for a commercial item if--
            ``(A) the contract or subcontract being modified is a 
        contract or subcontract for which submission of cost and 
        pricing data may not be required by reason of paragraph (1)(A);
            ``(B) the modification is not a case in which paragraph 
        (1)(A) prohibits the agency head from requiring submission of 
        cost and pricing data; and
            ``(C) 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) Limitation on Authority To Require Cost or Pricing Data.--
When cost or pricing data are not required to be submitted under this 
section by reason of a $500,000 threshold set forth in subsection (a) 
(as adjusted pursuant to paragraph (7) of such subsection) or by reason 
of an exception in paragraph (1)(A) or (2) of subsection (b), 
submission of such data may not be required unless the agency head 
concerned determines that such data are necessary for the evaluation by 
the agency of the reasonableness of the price of the contract or 
subcontract to which the data relate. In any case in which the agency 
head requires such data to be submitted in accordance with the 
preceding sentence, 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 conduct 
procurements of commercial items on a competitive basis.
    ``(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 shall nonetheless exempt a contract, subcontract, 
or modification of a contract or subcontract under the procurement from 
the requirements of subsection (a) if the contracting officer obtains, 
in accordance with standards and procedures set forth in the Federal 
Acquisition Regulation, information on prices at which the same or 
similar items have been sold in the commercial market that is adequate 
for evaluating the reasonableness of the price of the contract or 
subcontract for a commercial item, or the contract or subcontract 
modification, as the case may be. The contracting officer may obtain 
such information from the offeror or contractor or, when such 
information is not available from that source, from another source or 
sources.
    ``(3)(A) In accordance with procedures prescribed in the Federal 
Acquisition Regulation, 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 the agency is receiving accurate 
information required under this section.
    ``(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.--The Federal Acquisition Regulation 
shall include 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 an 
applicable $500,000 threshold set forth in subsection (a) (as adjusted 
pursuant to paragraph (7) of such subsection). Such information, at a 
minimum, shall include appropriate information on the prices at which 
the same or similar items have previously been sold that is adequate 
for evaluating the reasonableness of the price of a proposed contract 
or subcontract for the procurement.
    ``(i) Definitions.--In this section:
            ``(1) 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 term does not 
        include information that is judgmental, but does include the 
        factual information from which a judgment was derived.
            ``(2) The term `subcontract' includes a transfer of 
        commercial items between divisions, subsidiaries, or affiliates 
        of a contractor.''.
    (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 
304 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. RESEARCH PROJECTS.

    (a) Authorized Means.--Subsection (b) of section 2358 of title 10, 
United States Code, is amended to read as follows:
    ``(b) Authorized Means.--The Secretary of Defense or the Secretary 
of a military department may perform research and development 
projects--
            ``(1) by contract entered into with, grant made to, or 
        cooperative agreement entered into with educational or research 
        institutions, private businesses, or other persons in 
        accordance with the provisions of chapter 63 of title 31;
            ``(2) through one or more military departments;
            ``(3) by using employees and consultants of the Department 
        of Defense; or
            ``(4) by mutual agreement with the head of any other 
        department or agency of the Federal Government.''.
    (b) Caption Amendment.--The caption of subsection (c) of such 
section is amended by striking out ``Military'' and inserting in lieu 
thereof ``Department of Defense''.
    (c) Advanced Research Projects.--
            (1) Restoration and revision of former statement of 
        authority.--Section 2371 of title 10, United States Code, is 
        amended--
                    (A) by redesignating subsections (a), (b), (c), 
                (d), (e), and (f) as subsections (b), (c), (d), (e), 
                (f), and (g), respectively; and
                    (B) by inserting before subsection (b), as so 
                redesignated, the following new subsection (a):
    ``(a) The Secretary of Defense, acting through the Advanced 
Research Projects Agency and such other elements of the Department of 
Defense as the Secretary may designate, and the Secretary of each 
military department, in carrying out basic, applied, and advanced 
research projects, may enter into other transactions, in addition to 
contracts, grants, and cooperative agreements authorized by section 
2358 of this title.''.
            (2) Conforming amendments.--Such section, as amended by 
        paragraph (1), is further amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1), by inserting ``or 
                        subsection (a)'' after ``section 2358 of this 
                        title''; and
                            (ii) in paragraph (2), by striking out 
                        ``subsection (d)'' and inserting in lieu 
                        thereof ``subsection (e)'';
                    (B) in subsection (c), by inserting ``section 2358 
                of this title or'' after ``under'';
                    (C) in subsection (d)--
                            (i) in paragraph (1), by striking out 
                        ``this section'' and inserting in lieu thereof 
                        ``section 2358 of this title or subsection 
                        (a)''; and
                            (ii) in paragraph (3), by striking out 
                        ``this section'' and inserting in lieu thereof 
                        ``section 2358 of this title or subsection 
                        (a)'';
                    (D) in subsection (e), by inserting ``or subsection 
                (a)'' in the first sentence after ``section 2358 of 
                this title''; and
                    (E) in subsection (f)--
                            (i) in the first sentence, by striking out 
                        ``under this section'' and inserting in lieu 
                        thereof ``under section 2358 of this title or 
                        subsection (a)'';
                            (ii) in paragraph (4), by striking out 
                        ``subsection (a)'' and inserting in lieu 
                        thereof ``subsection (b)''; and
                            (iii) in paragraph (5), by striking out 
                        ``subsection (d)'' and inserting in lieu 
                        thereof ``subsection (e)''.

SEC. 1302. 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. PROTEST DEFINED.

    Paragraph (1) of section 3551 of title 31, United States Code, is 
amended to read as follows:
            ``(1) `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 the written objection contains 
                an allegation that the termination or cancellation is 
                based in whole or in part on improprieties concerning 
                the award of the contract;''.

SEC. 1402. 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 ``35 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) 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 (4), begin performance of the 
contract and engage in any related activities that result in 
obligations being incurred by the United States under the contract 
unless the contracting officer responsible for the award of the 
contract withholds 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 (4) 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)(A) If the Federal agency awarding the contract receives 
notice of a protest in accordance with this section during the period 
described in paragraph (4)--
            ``(i) the contracting officer may not authorize performance 
        of the contract to begin while the protest is pending; or
            ``(ii) if contract performance authorization to proceed was 
        not withheld 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 procuring 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.
    ``(4) The period referred to in paragraphs (2) and (3)(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 5 days after--
                    ``(i) the debriefing date offered to an 
                unsuccessful offeror for any debriefing that is 
                requested and, when requested, is required; or
                    ``(ii) in the case of a contract for which no 
                debriefing is required, the date on which the 
                unsuccessful offeror receives the notification of 
                contract award.''.

SEC. 1403. 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 to a protest that adds a new ground of protest, 
if timely made, 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 procuring 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 (other than a small business concern (within the 
meaning of section 3(a) of the Small Business Act)) 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; 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 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.--Costs 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.

SEC. 1404. 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 
                cause the closing of the General Accounting Office or 
                Federal agency, 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 (e);
            (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 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 contracting officer 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--
            (1) in paragraph (2) by adding at the end the following new 
        subparagraph:
    ``(C) If, in the case of a preaward protest, the board suspends the 
procurement authority of the Administrator or the Administrator's 
delegation of procurement authority, the Administrator or the delegate, 
as the case may be, may continue with the procurement action up to, but 
not including, the awarding of the contract if the Administrator or the 
delegate, as the case may be, determines that it is in the best 
interests of the United States to do so.''; and
            (2) 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 on the date 
that is 10 days after the date of the contract award or, if later, the 
date that is 5 days after--
            ``(I) the debriefing date offered to an unsuccessful 
        offeror for any debriefing that is requested and, when 
        requested, is required; or
            ``(II) in the case of a contract for which no debriefing is 
        required, the date on which the unsuccessful offeror receives 
        the notification of contract award.
    ``(iii) The board shall hold the requested hearing within 5 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 5 
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 (other than a small business concern 
(within the meaning of section 3(a) of the Small Business Act)) 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''.

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 cause the closing of the board or Federal 
                agency, 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 procedural sanctions, including dismissal of the 
protest.''.

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 the written objection contains 
                an allegation that the termination or cancellation is 
                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--
            (1) by striking out ``and'' at the end of subparagraph (A);
            (2) by striking out the period at the end of subparagraph 
        (B) and inserting in lieu thereof ``; and''; and
            (3) 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.''.

               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', `commercial component', 
        `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 and Technology 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 and Technology 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 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(e)(1), 2307(e), or 2313(d)(2) 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 than 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''.

                 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', `commercial component', `nondevelopmental item', and `simplified 
acquisition threshold'''.

SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS.

    (a) Authority.--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.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act is amended by striking out the items relating to sections 
309 and 310 and inserting in lieu thereof the following:

``Sec. 309. Delegation.
``Sec. 312. Definitions.
``Sec. 313. Statutes not applicable.''.

SEC. 1553. DETERMINATIONS AND DECISIONS.

    (a) 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 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 for a class of purchases or contracts. Such determinations 
and decisions are final.
    ``(b) Written Findings Required.--(1) Each determination under 
section 305(e) 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 than 6 years after the date of the determination or 
decision.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act, as amended by section 1552, is further amended by 
inserting after the item relating to section 309 the following:

``Sec. 310. Determinations and decisions.''.

SEC. 1554. COOPERATIVE PURCHASING.

    Subsection (b) of section 201 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481), is amended to read 
as follows:
    ``(b)(1) The Administrator shall, as far as practicable, provide 
any of the services specified in subsection (a) of this section to any 
other Federal agency, mixed-ownership Government corporation (as 
defined in section 9101 of title 31, United States Code), or the 
District of Columbia, upon its request.
    ``(2)(A) The Administrator may provide for the use of Federal 
supply schedules or other contracts by any of the following entities 
upon request:
            ``(i) A State, any department or agency of a State, and any 
        political subdivision of a State, including a local government.
            ``(ii) The District of Columbia.
            ``(iii) The Commonwealth of Puerto Rico.
            ``(iv) The government of an Indian tribe (as defined in 
        section 4(e) of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b(e))).
    ``(B) Subparagraph (A) may not be construed to authorize an entity 
referred to in that subparagraph to order existing stock or inventory 
from federally owned and operated, or federally owned and contractor 
operated, supply depots, warehouses, or similar facilities.
    ``(3)(A) Upon the request of a qualified nonprofit agency for the 
blind or other severely handicapped that is to provide a commodity or 
service to the Federal Government under the Javits-Wagner-O'Day Act, 
the Administrator may provide any of the services specified in 
subsection (a) to such agency to the extent practicable.
    ``(B) A nonprofit agency receiving services under the authority of 
subparagraph (A) shall use the services directly in making or providing 
an approved commodity or approved service to the Federal Government.
    ``(C) In this paragraph:
            ``(i) The term `qualified nonprofit agency for the blind or 
        other severely handicapped' means--
                    ``(I) a qualified nonprofit agency for the blind, 
                as defined in section 5(3) of the Javits-Wagner-O'Day 
                Act (41 U.S.C. 48b(3)); and
                    ``(II) a qualified nonprofit agency for other 
                severely handicapped, as defined in section 5(4) of 
                such Act (41 U.S.C. 48b(4)).
            ``(ii) The terms `approved commodity' and `approved 
        service' mean a commodity and a service, respectively, that has 
        been determined by the Committee for Purchase from the Blind 
        and Other Severely Handicapped under section 2 of the Javits-
        Wagner-O'Day Act (41 U.S.C. 47) to be suitable for procurement 
        by the Federal Government.
            ``(iii) The term `Javits-Wagner-O'Day Act' means the Act 
        entitled `An Act to create a Committee on Purchases of Blind-
        made Products, and for other purposes', approved June 25, 1938 
        (41 U.S.C. 46-48c), commonly referred to as the Wagner-O'Day 
        Act, that was revised and reenacted in the Act of June 23, 1971 
        (85 Stat. 77), commonly referred to as the Javits-Wagner-O'Day 
        Act.''.

                   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 ``(d) Payment Amount.--Payments'';
            (4) by striking out ``(c) Advance payments'' and inserting 
        in lieu thereof ``(e) Security for Advance Payments.--Advance 
        payments'';
            (5) by striking out ``(d)(1) The Secretary of Defense'' and 
        inserting in lieu thereof ``(f) Conditions for Progress 
        Payments.--(1) The Secretary of Defense''; and
            (6) by striking out ``(e)(1) In any case'' and inserting in 
        lieu thereof ``(h) 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 or, when appropriate, on 
an advance basis and should be so made 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) Performance-Based Payments.--Such section, as amended by 
subsection (a), is further amended by inserting after subsection (b) 
the following new subsection (c):
    ``(c) Performance-Based Payments.--Whenever practicable, payments 
under subsection (b) shall be made on any of the following bases:
            ``(1) Performance measured by objective, quantifiable 
        methods such as receipt of items by the Federal Government, 
        work measurement, or statistical process controls.
            ``(2) Accomplishment of events defined in the program 
        management plan.
            ``(3) Other quantifiable measures of results.''.
    (d) Terminology Correction.--Such section, as amended by subsection 
(a)(2), is further amended in subsection (b)(2) by striking out 
``bid''.
    (e) Effective Date of Lien Related to Advance Payments.--Such 
section, as amended by subsection (a)(4), is further amended in 
subsection (e) 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''.
    (f) Conditions for Progress Payments.--Such section, as amended by 
subsection (a)(5), is further amended in subsection (f)--
            (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.''.
    (g) Navy Contracts.--Such section, as amended by subsection (a)(5), 
is further amended by inserting after subsection (f) the following new 
subsection (g):
    ``(g) 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.''.
    (h) Relationship to Prompt Payment Requirements.--Section 2307(f) 
of title 10, United States Code, as amended by subsection (f), is 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.
    (i) Conforming and Clerical Amendments.--
            (1) Cross reference.--Such section, as amended by 
        subsection (a), is further amended in subsections (d) and (e) 
        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.''.
    (j) 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.

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 ``(d) Payment Amount.--Payments''; and
            (4) by striking out ``(c) Advance payments'' and inserting 
        in lieu thereof ``(e) 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 or, when appropriate, on 
an advance basis and should be so made 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) Performance-Based Payments.--Such section, as amended by 
subsection (a), is further amended by inserting after subsection (b) 
the following new subsection (c):
    ``(c) Performance-Based Payments.--Whenever practicable, payments 
under subsection (b) shall be made on any of the following bases:
            ``(1) Performance measured by objective, quantifiable 
        methods such as receipt of items by the Federal Government, 
        work measurement, or statistical process controls.
            ``(2) Accomplishment of events defined in the program 
        management plan.
            ``(3) Other quantifiable measures of results.''.
    (d) Terminology Correction.--Such section, as amended by subsection 
(a)(2), is further amended in subsection (b)(2) by striking out 
``bid''.
    (e) Effective Date of Lien Related to Advance Payments.--Such 
section, as amended by subsection (a)(4), is further amended in 
subsection (e) 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''.
    (f) 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:
    ``(f) 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.
    ``(g) 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 
        amendment made by paragraph (1) is 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.
    (g) 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 (d) and (e) 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) Unallowability of Costs To Influence Local Legislative 
Bodies.--Subsection (e)(1)(B) of section 2324 of title 10, United 
States Code, is amended by striking out ``or a State legislature'' and 
inserting in lieu thereof ``, a State legislature, or a legislative 
body of a political subdivision of a State''.
    (b) Comptroller General Evaluation.--Section 2324 of such title is 
amended by striking out subsection (l).
    (c) Covered Contract Defined.--Subsection (m) of such section is 
amended to read as follows:
    ``(l)(1) 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.
    ``(2) Effective on October 1 of each year that is divisible by 5, 
the amount set forth in paragraph (1) shall be adjusted to the amount 
that is equal to the fiscal year 1994 constant dollar value of the 
amount set forth. An amount, as so adjusted, that is not evenly 
divisible by $50,000 shall be rounded to the nearest multiple of 
$50,000. In the case of an amount that is evenly divisible by $25,000 
but is not evenly divisible by $50,000, the amount shall be rounded to 
the next higher multiple of $50,000.''.

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.--In accordance with the Federal 
Acquisition Regulation, the agency head may waive a penalty under 
subsection (b) 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, a 
        State legislature, or a legislative body of a political 
        subdivision of a State.
            ``(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 the Federal Acquisition Regulation.
            ``(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 in 
        accordance with the Federal Acquisition Regulation.
            ``(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) Subject to the availability of appropriations, the head of 
an executive agency, in awarding a covered contract, may waive in 
accordance with the Federal Acquisition Regulation 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 shall implement this 
section with respect to contracts of that executive agency in 
accordance with the Federal Acquisition Regulation. The provisions of 
the Federal Acquisition applicable to the implementation of this 
section may include 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 to Subcontractors.--The 
regulations prescribed to carry out 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 
Regulations.
    ``(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) Covered Contract Defined.--(1) 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.
    ``(2) Effective on October 1 of each year that is divisible by 5, 
the amount set forth in paragraph (1) shall be adjusted to the amount 
that is equal to the fiscal year 1994 constant dollar value of the 
amount set forth. An amount, as so adjusted, that is not evenly 
divisible by $50,000 shall be rounded to the nearest multiple of 
$50,000. In the case of an amount that is evenly divisible by $25,000 
but is not evenly divisible by $50,000, the amount shall be rounded to 
the next higher multiple of $50,000.''.
    (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.

SEC. 2192. UNALLOWABILITY OF ENTERTAINMENT COSTS UNDER COVERED 
              CONTRACTS.

    Not later than 90 days after the date of the enactment of this Act, 
the Federal Acquisition Regulatory Council shall amend the cost 
principle in the Federal Acquisition Regulation that is set out in 
section 31.205-14 of title 48, Code of Federal Regulations, relating to 
unallowability of entertainment costs--
            (1) by inserting in the cost principle a statement that 
        costs made specifically unallowable under that cost principle 
        are not allowable under any other cost principle; and
            (2) by striking out ``(but see 31.205-1 and 31.205-13)''.

                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 cost-
                reimbursement, incentive, time-and-materials, labor-
                hour, or price-redeterminable subcontract under a 
                contract referred to in subparagraph (A) or under any 
                combination of such 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) Limitation on Preaward Audits Relating to Indirect Costs.--
The head of an agency may not perform a preaward audit to evaluate 
proposed indirect costs under any contract, subcontract, or 
modification to be entered into in accordance with this chapter in any 
case in which the contracting officer determines that the objectives of 
the audit can reasonably be met by accepting the results of an audit 
conducted by any other department or agency of the Federal Government 
within one year preceding the date of the contracting officer's 
determination.
    ``(c) 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 or Secretary of a military department 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.
    ``(d) 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).
    ``(3) Paragraph (1) may not be construed to require a contractor or 
subcontractor to create or maintain any record that the contractor or 
subcontractor does not maintain in the ordinary course of business or 
pursuant to another provision of law.
    ``(e) Limitation.--The right of the head of an agency under 
subsection (a), and the right of the Comptroller General under 
subsection (d), with respect to a contract or subcontract shall expire 
three years after final payment under such contract or subcontract.
    ``(f) 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.
    ``(g) 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 cost-
                reimbursement, incentive, time-and-materials, labor-
                hour, or price-redeterminable subcontract under a 
                contract referred to in subparagraph (A) or under any 
                combination of such 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) Limitation on Preaward Audits Relating to Indirect Costs.--
The agency head may not perform a preaward audit to evaluate proposed 
indirect costs under any contract, subcontract, or modification to be 
entered into in accordance with this title in any case in which the 
contracting officer determines that the objectives of the audit can 
reasonably be met by accepting the results of an audit conducted by any 
other department or agency of the Federal Government within one year 
preceding the date of the contracting officer's determination.
    ``(c) 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.
    ``(d) 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).
    ``(3) Paragraph (1) may not be construed to require a contractor or 
subcontractor to create or maintain any record that the contractor or 
subcontractor does not maintain in the ordinary course of business or 
pursuant to another provision of law.
    ``(e) Limitation.--The right of an agency head under subsection 
(a), and the right of the Comptroller General under subsection (d), 
with respect to a contract or subcontract shall expire three years 
after final payment under such contract or subcontract.
    ``(f) 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.
    ``(g) 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. EXCEPTIONS TO COVERAGE.

    Section 26(f)(2) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 422(f)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking out ``, other than contracts or 
        subcontracts'' and all that follows and inserting in lieu 
        thereof a period; and
            (3) by inserting at the end the following:
    ``(B) Subparagraph (A) does not apply to the following contracts or 
subcontracts:
            ``(i) Contracts or subcontracts where the price negotiated 
        is based on established catalog or market prices of commercial 
        items sold in substantial quantities to the general public.
            ``(ii) Contracts or subcontracts where the price negotiated 
        is based on prices set by law or regulation.
            ``(iii) Any other firm fixed-price contract or subcontract 
        for commercial items which is excepted from the requirement to 
        provide cost or pricing data pursuant to subsection (b) or (d) 
        of section 2306a of title 10, United States Code, or subsection 
        (b) or (d) of section 304A of the Federal Property and 
        Administrative Services Act of 1949.
    ``(C) In this paragraph, the term `subcontract' includes a transfer 
of commercial items between divisions, subsidiaries, or affiliates of a 
contractor.''.

SEC. 2302. 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.''.

                    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. Each such determination of need 
shall be published in the Federal Register.
    ``(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 Governmentwide 
Requirement.--
            (1) Inapplicability of requirement to contract claims.--
        Section 2410 of title 10, United States Code, is amended to 
        read as follows:
``Sec. 2410. Requests for equitable adjustment or other relief: 
              certification
    ``(a) Certification Requirement.--A request for equitable 
adjustment to contract terms or request for relief under Public Law 85-
804 (50 U.S.C. 1431 et seq.) that exceeds the simplified acquisition 
threshold may not be paid unless a person authorized to certify the 
request on behalf of the contractor certifies, at the time the request 
is submitted, that--
            ``(1) the request is made in good faith, and
            ``(2) the supporting data are accurate and complete to the 
        best of that person's knowledge and belief.''.
            (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 and inserting in lieu 
        thereof the following:

``2410. Requests for equitable adjustment or other relief: 
                            certification.''.
    (b) Restriction on Legislative Payment of Claims.--Section 2410 of 
title 10, United States Code, as amended by subsection (a), is further 
amended by adding at the end the following new subsection:
    ``(b) 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, 1994, 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.''.
    (c) Definition.--Section 2410, as amended by subsections (a) and 
(b), is further amended by adding at the end the following:
    ``(c) Definition.--In this section, the term `simplified 
acquisition threshold' has the meaning given that term in section 
2302(4) of this title.''.
    (d) Repeal of Related Provisions.--
            (1) Certification regulations for contract claims exceeding 
        $100,000.--
                    (A) Repeal.--Section 2410e 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 2410e.
            (2) Conforming repeal.--Section 813(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484, 106 Stat. 2453), is repealed.

SEC. 2502. SHIPBUILDING CLAIMS.

    (a) Limitation on Period for Submission.--
            (1) Increased period.--Subsection (a) of section 2405 of 
        title 10, United States Code, is amended--
                    (A) by striking out ``after December 7, 1983,'' and 
                inserting in lieu thereof ``on or after the date of the 
                enactment of the Federal Acquisition Streamlining Act 
                of 1994''; and
                    (B) by striking out ``18 months'' and inserting in 
                lieu thereof ``6 years''.
            (2) Savings provision.--Notwithstanding the 6-year period 
        provided in subsection (a) of section 2405 of title 10, United 
        States Code, as amended by paragraph (1), the period applicable 
        under such subsection in the case of a shipbuilding contract 
        entered into after December 7, 1983, and before the date of the 
        enactment of the Federal Acquisition Streamlining Act of 1994 
        shall continue to be 18 months.
    (b) Resubmission With Corrected Certification.--Subsection (c) of 
such section is repealed.

                    PART II--ACQUISITIONS GENERALLY

SEC. 2551. CLAIMS JURISDICTION OF UNITED STATES DISTRICT COURTS AND THE 
              UNITED STATES COURT OF FEDERAL CLAIMS.

    (a) 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 or any Federal entity 
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, 1334, or 
1346(a)(2)(B) of this title, any provision of law giving a Federal 
entity the right to sue or be sued in its own name, or any other 
provision of law.''.
    (b) Jurisdiction of the United States Court of Federal Claims Under 
the Tucker Act.--Section 1491 of title 28, United States Code, as 
amended by section 1422, is further amended by inserting after 
subsection (c) the following:
    ``(d)(1) The United States Court of Federal Claims shall 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 civil 
action or claim that seeks to establish the existence or nonexistence 
of such a contract, seeks to establish that such contract is void, or 
seeks to determine and construe the terms of any such contract.
    ``(2) The jurisdiction of the United States Court of Federal Claims 
is, pursuant to section 1346(a)(2)(B) of this title, exclusive as to 
the district courts of the United States.''.

SEC. 2552. CONTRACT DISPUTES ACT IMPROVEMENTS.

    (a) Period for Filing Claims.--
            (1) Six-year limitation.--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. The preceding sentence does not apply to a claim 
        by the government against a contractor that is based on a claim 
        by the contractor involving fraud.''.
            (2) Limitation on applicability to existing contracts.--
        Notwithstanding the third sentence of section 6(a) of the 
        Contract Disputes Act of 1978, as added by paragraph (1), if a 
        contract in existence on the date of the enactment of this Act 
        requires that a claim referred to in that sentence be submitted 
        earlier than 6 years after the occurrence of the event or 
        events giving rise to the claim, then the claim shall be 
        submitted within the period required by the contract. The 
        preceding sentence does not apply to a claim by the Federal 
        Government against a contractor that is based on a claim by the 
        contractor involving fraud.
    (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 Accelerated 
Procedures.--Section 8(f) of the Contract Disputes Act of 1978 (41 
U.S.C. 607(f)) is amended by striking out ``$50,000'' in the first 
sentence and inserting in lieu thereof ``$150,000''.
    (d) 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 ``$50,000''.
    (e) 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''.

SEC. 2553. EXTENSION OF ALTERNATIVE DISPUTE RESOLUTION AUTHORITY.

    (a) Extension of Authority.--Section 6(e) of the Contracts Disputes 
Act of 1978 (41 U.S.C. 605(e)) is amended by striking out ``October 1, 
1995'' and inserting in lieu thereof ``October 1, 1999''.
    (b) Availability of Procedures to Small Business Government 
Contractors.--Section 6(e) of such Act is amended by inserting after 
the first sentence the following: ``In any case in which the 
contracting officer rejects a contractor's request for alternative 
dispute resolution proceedings, the contracting officer shall provide 
the contractor with a written explanation, citing one or more of the 
conditions in section 572(b) of title V, United States Code, or such 
other specific reasons that alternative dispute resolution procedures 
are inappropriate for the resolution of the dispute. In any case in 
which a contractor rejects a request of an agency for alternative 
dispute resolution proceedings, the contractor shall inform the agency 
in writing of the contractor's specific reasons for rejecting the 
request.''.

SEC. 2554. EXPEDITED RESOLUTION OF CONTRACT ADMINISTRATION COMPLAINTS.

    (a) Regulations Required.--The Federal Acquisition Regulation shall 
include provisions that require a contracting officer--
            (1) to make every reasonable effort to respond in writing 
        within 30 days to any written request made to a contracting 
        officer with respect to a matter relating to the administration 
        of a contract that is received from a small business concern; 
        and
            (2) in the event that the contracting officer is unable to 
        reply within the 30-day period, to transmit to the contractor 
        within such period a written notification of a specific date by 
        which the contracting officer expects to respond.
The provisions shall not apply to a request for a contracting officer's 
decision under the Contract Disputes Act of 1978 (41 U.S.C. 601 et 
seq.).
    (b) Rule of Construction.--Nothing in this provision shall be 
considered as creating any rights under the Contract Disputes Act (41 
U.S.C. 601 et seq.).
    (c) Definition.--In this section, the term ``small business 
concern'' means a business concern that meets the requirements of 
section 3(a) of the Small Business Act (15 U.S.C. 632(a)) and the 
regulations promulgated pursuant to that section.

SEC. 2555. AUTHORITY FOR DISTRICT COURTS TO OBTAIN ADVISORY OPINIONS 
              FROM BOARDS OF CONTRACT APPEALS IN CERTAIN CASES.

    Section 10 of the Contract Disputes Act of 1978 (41 U.S.C. 609) is 
amended by adding at the end the following new paragraph:
    ``(f)(1) Whenever an action involving an issue described in 
paragraph (2) is pending in a district court of the United States, the 
district court may request a board of contract appeals to provide the 
court with an advisory opinion on the matters of contract 
interpretation at issue.
    ``(2) An issue referred to in paragraph (1) is any issue that could 
be the proper subject of a final decision of a contracting officer 
appealable under this Act.
    ``(3) A district court shall direct any request under paragraph (1) 
to the board of contract appeals having jurisdiction under this Act to 
adjudicate appeals of contract claims under the contract or contracts 
being interpreted by the court.
    ``(4) Within ninety days after receiving a request for an advisory 
opinion under paragraph (1), a board of contract appeals shall provide 
the advisory opinion to the district court making the request.''.

         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 prescribe 
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 train for, 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 prescribe 
regulations governing--
            ``(1) the content of baseline descriptions, which shall 
        include the program cost, the program schedule, and a program 
        performance description;
            ``(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 and Technology;
            ``(3) procedures for review of deviation reports within the 
        Department of Defense; and
            ``(4) procedures for submission and approval of revised 
        baseline descriptions.
    ``(c) Baseline Description Required Before Obligation of Funds.--
(1) Except as provided in paragraph (2), no amount appropriated or 
otherwise made available to the Department of Defense may be obligated 
for a major defense acquisition program before a baseline description 
for the program is approved in accordance with the procedures 
prescribed pursuant to subsection (b)(4).
    ``(2) An obligation otherwise prohibited by paragraph (1) may be 
incurred if approved in advance by the Under Secretary of Defense for 
Acquisition and Technology.''.
    (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 TO DESIGNATE CERTAIN MAJOR DEFENSE 
              ACQUISITION PROGRAMS AS DEFENSE ENTERPRISE PROGRAMS.

    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. DIRECTOR OF OPERATIONAL TEST AND EVALUATION TO REPORT 
              DIRECTLY TO SECRETARY OF DEFENSE.

    Section 139(c) of title 10, United States Code, is amended by 
inserting after ``(c)'' the following: ``The Director reports directly, 
without intervening review or approval, to the Secretary of Defense and 
Deputy Secretary of Defense personally.''.

SEC. 3012. RESPONSIBILITY OF DIRECTOR OF OPERATIONAL TEST AND 
              EVALUATION FOR LIVE FIRE TESTING.

    (a) Conduct of Live Fire Testing.--Subsection (b) of section 139 of 
title 10, United States Code, 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 ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) conduct the live fire testing activities of the 
        Department of Defense provided for under section 2366 of this 
        title.''.
    (b) Annual Report on Live Fire Testing.--Subsection (f) of such 
section is amended by inserting ``(including live fire testing 
activities)'' in the first sentence after ``operational test and 
evaluation activities''.

SEC. 3013. REQUIREMENT FOR UNCLASSIFIED VERSION OF ANNUAL REPORT ON 
              OPERATIONAL TEST AND EVALUATION.

    Section 139(f) of title 10, United States Code, is amended by 
inserting after the second sentence the following new sentence: ``If 
the Director submits the report to Congress in a classified form, the 
Director shall concurrently submit an unclassified version of the 
report to Congress.''.

                   Subtitle C--Service Specific Laws

SEC. 3021. GRATUITOUS SERVICES OF OFFICERS OF CERTAIN RESERVE 
              COMPONENTS.

    Section 279 of title 10, United States Code, is amended--
            (1) by striking out ``Notwithstanding'' and inserting in 
        lieu thereof ``(a) Acceptance by Secretary of a Military 
        Department.--Notwithstanding''; and
            (2) by adding at the end the following new subsection:
    ``(b) Acceptance by Secretary of Defense.--Notwithstanding section 
1342 of title 31, the Secretary of Defense may accept the gratuitous 
services of an officer of a reserve component (other than an officer of 
the Army National Guard of the United States or the Air National Guard 
of the United States) in consultation upon matters relating to the 
armed forces.''.

SEC. 3022. AUTHORITY TO RENT SAMPLES, DRAWINGS, AND OTHER INFORMATION 
              TO OTHERS.

    Subchapter V of chapter 148 of title 10, United States Code, is 
amended in section 2541(a) by inserting ``rent,'' after ``sell,'' each 
place it appears in paragraphs (1) and (2).

SEC. 3023. CIVIL RESERVE AIR FLEET.

    (a) Definitions.--Section 9511 of title 10, United States Code, is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ```civil aircraft','' after 
                ```person','';
                    (B) by striking out ``meaning'' and inserting in 
                lieu thereof ``meanings''; and
                    (C) by striking out ``(49 U.S.C. 1301)'' and 
                inserting in lieu thereof ``(49 U.S.C. App. 1301)'';
            (2) in paragraph (2), by striking out ``passenger-cargo'' 
        and inserting in lieu thereof ``passenger cargo'';
            (3) in paragraph (3), by striking out ``cargo-capable'' and 
        inserting in lieu thereof ``cargo capable'';
            (4) by striking out paragraph (5) and inserting in lieu 
        thereof the following:
            ``(5) The term `cargo convertible aircraft' means a 
        passenger aircraft equipped or designed so that all or 
        substantially all of the main deck of the aircraft can be 
        readily converted for the carriage of property or mail.'';
            (5) by striking out paragraph (6);
            (6) by redesignating paragraph (7) as paragraph (6);
            (7) by redesignating paragraph (8) as paragraph (7) and--
                    (A) in subparagraph (A) of such paragraph, by 
                inserting ``under section 9512 of this title'' after 
                ``and who contracts with the Secretary'';
                    (B) by striking out ``or'' at the end of such 
                subparagraph (A); and
                    (C) by inserting before the period at the end of 
                such paragraph the following: ``, or (C) who owns or 
                controls existing aircraft, or will own or control new 
                aircraft, and who contractually commits all or some of 
                such aircraft to the Civil Reserve Air Fleet'';
            (8) by redesignating paragraphs (9), (10), (11), and (12) 
        as paragraphs (8), (9), (10), and (11), respectively; and
            (9) in paragraph (11), as so redesignated--
                    (A) by striking out ``interoperability'' and 
                inserting in lieu thereof ``compatibility''; and
                    (B) by striking out ``a cargo-convertible, cargo-
                capable, or passenger-cargo combined aircraft'' and 
                inserting in lieu thereof ``an aeromedical aircraft or 
                a cargo convertible, cargo capable, or passenger cargo 
                combined aircraft''.
    (b) Consolidation of Provisions Relating to Contractual Commitment 
of Aircraft.--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), 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.--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 service 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 for commercial operations not 
required by the Department of Defense 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 any other 
provision of law, amounts collected from the contractor for landing 
fees, services, supplies, or other charges authorized to be collected 
under the contract shall be credited to the appropriations of the armed 
forces having jurisdiction over the military installation to which the 
contract pertains. Amounts so credited to an appropriation shall be 
available for obligation for the same period as the appropriation to 
which credited.
    ``(d) Hold Harmless Requirement.--A contract entered into under 
subsection (a) shall provide that the contractor agrees to indemnify 
and hold harmless the United States 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 or, 
in the case of an installation under the jurisdiction of an armed force 
other than the Air Force, the Secretary concerned may at any time and 
without prior notice deny access to an installation designated under 
the contract if military exigencies require such action.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning 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. 3024. EXCHANGE OF 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. 2350k. Exchange of personnel
    ``(a) International Exchange Agreements Authorized.--Under 
regulations prescribed by the Secretary of Defense, the Secretary and 
the secretaries of the military departments are each authorized to 
enter into agreements with the governments of foreign countries for the 
exchange of military and civilian personnel of the Department of 
Defense and military and civilian personnel of the defense departments 
or ministries of such foreign governments.
    ``(b) Assignment of Personnel.--Pursuant to such agreements, 
personnel of the foreign defense departments or ministries may be 
assigned to positions in the Department of Defense, and personnel of 
the Department of Defense may be assigned to positions in foreign 
defense departments or ministries. Agreements for the exchange of 
personnel engaged in research and development activities may provide 
for assignments to positions in private industry that support the 
defense departments or ministries. The specific positions and the 
individuals to be assigned must be acceptable to both the sending 
government and the host government.
    ``(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:

``2350k. Exchange of personnel.''.

SEC. 3025. SCIENTIFIC INVESTIGATION AND RESEARCH FOR THE NAVY.

    (a) Repeal.--Section 7203 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 7203.

SEC. 3026. 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. 3027. 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. 3028. AUTHORITY TO TRANSFER BY GIFT A VESSEL STRICKEN FROM NAVAL 
              VESSEL REGISTER.

    Section 7306(a)(1) of title 10, United States Code, is amended by 
inserting ``Territory,'' after ``State,''.

SEC. 3029. NAVAL SALVAGE FACILITIES.

    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) by striking out subsection (c) and inserting in 
                lieu thereof the following new subsection (c):
    ``(c) Limitation on Term Contracts.--Term contracts may be entered 
into for purposes of this section only after--
            ``(1) it has been demonstrated to the satisfaction of the 
        Secretary of the Navy that available commercial salvage 
        facilities are inadequate to meet national defense 
        requirements; and
            ``(2) the Secretary of the Navy determines that adequate 
        public notice of intent to exercise the authority under this 
        subsection has been provided.'';
            (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 7367 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 ``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'';
            (10) by striking out the section headings for sections 
        7362, 7363, 7365, and 7367;
            (11) by striking out the heading for section 7361 and 
        inserting in lieu thereof the following:
``Sec. 7361. Navy support for salvage operations'';
        and
            (12) 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, and 7367.

 Subtitle D--Department of Defense Commercial and Industrial Activities

SEC. 3051. 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 advisory and assistance services for each 
department and agency as a separate object class in each budget 
annually submitted to the Congress under this section.
    ``(2)(A) In paragraph (1), except as provided in subparagraph (B), 
the term `advisory and assistance services' means the following 
services when provided by nongovernmental sources:
            ``(i) Management and professional support services.
            ``(ii) Studies, analyses, and evaluations.
            ``(iii) Engineering and technical services.
    ``(B) In paragraph (1), the term `advisory and assistance services' 
does not include the following services:
            ``(i) Routine automated data processing and 
        telecommunications services unless such services are an 
        integral part of a contract for the procurement of advisory and 
        assistance services.
            ``(ii) Architectural and engineering services.
            ``(iii) Technical support of research and development 
        activities.
            ``(iv) Research on basic mathematics or medical, 
        biological, physical, social, psychological, or other 
        phenomena.''.
    (b) Repeal of Source Law.--Section 512 of Public Law 102-394 (106 
Stat. 1826) is repealed.
    (c) Repeal of Superseded Provisions.--
            (1) Title 10.--
                    (A) Repeal.--Section 2212 of title 10, United 
                States Code, is repealed.
                    (B) 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.
            (2) Title 31.--
                    (A) Repeal.--Section 1114 of title 31, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 11 of such title is amended by 
                striking out the item relating to section 1114.

               Subtitle E--Fuel- and Energy-Related Laws

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

    Section 2388(a) of title 10, United States Code, is amended by 
striking out ``liquid fuels and natural gas'' and inserting in lieu 
thereof ``liquid fuels or natural gas''.

                      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 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. 3083. 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. 2410l. 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:

``2410l. Lease 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.

SEC. 3084. SOFT DRINK SUPPLIES FOR EXCHANGE STORES.

    Section 2424 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Paragraphs (1) and (2) of subsection (b) do not apply to 
contracts for the procurement of soft drinks that are manufactured in 
the United States. The Secretary of Defense shall prescribe in 
regulations the standards and procedures for determining whether a 
particular drink is a soft drink and whether the drink was manufactured 
in the United States.''.

SEC. 3085. REPEAL OF PREFERENCE FOR RECYCLED TONER CARTRIDGES.

    The following provisions of law, relating to a preference for 
procurement of recycled toner cartridges, are repealed:
            (1) Section 630 of Public Law 102-393 (106 Stat. 1773) and 
        the provision of law set out in quotes in that section (42 
        U.S.C. 6962(j)).
            (2) Section 401 of Public Law 103-123 (107 Stat. 1238).

  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, 1999, procuring 
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) Regulations prescribed pursuant to subsection (a) shall 
include the following provisions:
            ``(1) A provision that a contract with an anticipated value 
        not in excess of $2,500 is not subject to section 15(j) of the 
        Small Business Act (15 U.S.C. 644(j)) and section 2 of title 
        III of the Act of March 3, 1933 (commonly known as the `Buy 
        America Act') (41 U.S.C. 10a et seq.).
            ``(2) A provision that a civilian or military official, or 
        employee of an agency, whose contracting authority does not 
        exceed $2,500 is not a procurement official for the purposes of 
        section 27 of this Act.
            ``(3) A provision that a purchase not in excess of $2,500 
        may be made without obtaining competitive quotations if the 
        contracting officer determines that the price for the purchase 
        is reasonable.
            ``(4) A requirement that purchases not in excess of $2,500 
        be distributed equitably among qualified suppliers.
            ``(5) A requirement that a contracting officer consider 
        each responsive offer timely received from an eligible offeror.
    ``(c) 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).
    ``(d) 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 purchase of goods and services that 
has an anticipated value in excess of $2,500 but 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 purchased.
    ``(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 subsection (a) or (c) of 
section 8 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).''.

SEC. 4013. FAST PAYMENT UNDER SIMPLIFIED ACQUISITION PROCEDURES.

    (a) Payment Procedures.--The simplified acquisition procedures 
described in section 29(a) of the Office of Federal Procurement Policy 
Act (as added by section 4011) shall provide for use of the payment 
terms described in subsection (b), and for the disbursement of payment 
through electronic fund transfer, whenever circumstances permit.
    (b) Required Payment Terms.--The payment terms for a purchase made 
pursuant to simplified acquisition procedures shall require payment, in 
accordance with the provisions of chapter 39 of title 31, United States 
Code, within 15 days after the date of the receipt of a proper invoice 
for products delivered or services performed, if--
            (1) in the case of a purchase of property, title to the 
        property vests in the Government upon delivery of the property 
        to the Government or to a common carrier;
            (2) in the case of property or services for which payment 
        is due before the Government's acceptance of the property or 
        services, the vendor provides commercial or other appropriate 
        warranties assuring that the property or services purchased 
        conform to the requirements set forth in the Government's 
        purchase offer; and
            (3) funds are available for making the payment.
    (c) Disbursements To Be Matched With Obligations.--The simplified 
acquisition procedures shall include procedures that ensure that each 
request for a disbursement is matched with a particular obligation 
before the disbursement is made under the payment terms provided for 
under subsection (a).

SEC. 4014. 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 $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 Not Required in Electronic Commerce.--Subsection (c)(1) 
of such section, as amended by section 1055(b), is further amended--
            (1) by redesignating subparagraphs (A), (B), (C), (D), (E) 
        and (F) as subparagraphs (B), (C), (D), (E), (F), and (G), 
        respectively; and
            (2) by inserting above subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
            ``(A) the proposed procurement is conducted by means of 
        electronic commerce pursuant to a system that, as determined by 
        the Administrator for Federal Procurement Policy, has the 
        capabilities described in subsections (a) and (b) of section 
        4015 of the Federal Acquisition Streamlining Act of 1994;''.
    (d) 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.''.

SEC. 4015. ELECTRONIC COMMERCE FOR FEDERAL GOVERNMENT PROCUREMENTS.

    (a) Development and Implementation of System.--The Administrator 
for Federal Procurement Policy, in consultation with the heads of 
appropriate Federal Government agencies having applicable technical and 
functional expertise, may take appropriate steps to develop and 
implement a Federal Governmentwide architecture or design for 
electronic commerce that provides interoperability among users.
    (b) Required Capabilities.--The requirements analysis prepared to 
implement the architecture or design of a system of electronic commerce 
referred to in subsection (a) shall have the following capabilities:
            (1) The maximum practicable capability for electronic 
        exchange of such procurement information as solicitations, 
        offers, contracts, purchase orders, invoices, payments, and 
        other contractual documents between the private sector and the 
        Federal Government.
            (2) Capabilities that increase the access of businesses, 
        including small business concerns, socially and economically 
        disadvantaged small business concerns, and businesses owned 
        predominantly by women, to Federal Government procurement 
        opportunities.
            (3) Easy access for potential Federal Government 
        contractors.
            (4) Use of nationally and internationally recognized data 
        formats that broaden and ease electronic interchange of data.
            (5) Use of Federal Government systems and networks and 
        industry systems and networks.
    (c) Notice and Solicitation Regulations.--In connection with 
implementation of the architecture or design referred to in subsection 
(a), the Federal Acquisition Regulatory Council shall ensure that the 
Federal Acquisition Regulation contains appropriate notice and 
solicitation provisions applicable to acquisitions conducted through 
such architecture or design. The provisions shall specify the required 
form and content of notices of acquisitions and the minimum periods for 
notifications of solicitations and for deadlines for the submission of 
offers under solicitations. Each minimum period specified for a 
notification of solicitation and each deadline for the submission of 
offers under a solicitation shall afford potential offerors a 
reasonable opportunity to respond.
    (d) Limitation of Publication Requirement.--The requirement in 
section 18(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 416(a)) and section 8(e) of the Small Business Act (15 U.S.C. 
637(e)) for publishing notice of a solicitation in the Commerce 
Business Daily shall not apply to acquisitions of a Federal agency or a 
component of a Federal agency that are made through electronic commerce 
and have a value not in excess of the simplified acquisition threshold 
if the Federal Acquisition Regulation contains the provisions 
specifically required by subsection (c) and the Administrator for 
Federal Procurement Policy certifies that such agency or component--
            (1) has fully implemented the architecture or design 
        referred to in subsection (a); and
            (2) has procedures in place--
                    (A) to provide notice to potential offerors in 
                accordance with the requirements of the Federal 
                Acquisition Regulation prescribed pursuant to 
                subsection (c); and
                    (B) to ensure that small business concerns are 
                afforded an opportunity to respond to a solicitation of 
                contract offers within the period specified in the 
                solicitation.
    (e) Definition.--In this section, the term ``simplified acquisition 
threshold'' has the meaning given that term is section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).

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

SEC. 4021. FUTURE ENACTED PROCUREMENT LAWS.

    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:

 ``applicability 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 1994 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.''.

SEC. 4022. ARMED SERVICES ACQUISITIONS.

    (a) 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.''.
    (b) 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))).''.
    (c) 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 (f) the following:
            ``(2) A contract that is not in excess of the simplified 
        acquisition threshold.''.
    (d) 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))).''.
    (e) 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))).''.
    (f) Prohibition on Persons Convicted of Defense-Contract Related 
Felonies.--Section 2408(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(4) The prohibition in paragraph (1) does not apply with respect 
to the following:
            ``(A) A contract referred to in subparagraph (A), (B), (C), 
        or (D) of such paragraph 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))).
            ``(C) A subcontract referred to in such subparagraph that 
        is under a contract described in subparagraph (A).''.

SEC. 4023. CIVILIAN AGENCY ACQUISITIONS.

    (a) 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.''.
    (b) 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.''.
    (c) 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 (f) the following:
            ``(2) A contract that is not in excess of the simplified 
        acquisition threshold.''.

SEC. 4024. ACQUISITIONS GENERALLY.

    (a) 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)))''.
    (b) 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))).''.
    (c) Miller Act.--
            (1) In general.--
                    (A) 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))).''.
                    (B) Conforming amendment.--Subsection (a) of the 
                first section of such Act is amended by striking out 
                ``, exceeding $25,000 in amount,''.
            (2) Alternative payment protections.--
                    (A) Protections to be specified in the far.--The 
                Federal Acquisition Regulation shall provide 
                alternatives to payment bonds as payment protections 
                for suppliers of labor and materials under contracts 
                referred to in subparagraph (C).
                    (B) Use of authorized protections.--The contracting 
                officer for a contract shall--
                            (i) select, from among the payment 
                        protections provided for in the Federal 
                        Acquisition Regulation pursuant to subparagraph 
                        (A), one or more payment protections which the 
                        offeror awarded the contract is to submit to 
                        the Federal Government for the protection of 
                        suppliers of labor and materials for such 
                        contract; and
                            (ii) specify in the solicitation of offers 
                        for such contract the payment protection or 
                        protections so selected.
                    (C) Covered contracts.--
                            (i) Applicability.--The regulations 
                        required under subparagraph (A) and the 
                        requirements of subparagraph (B) 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))).
                            (ii) Miller act reference.--The Miller Act 
                        referred to in subparagraph (A) is the Act of 
                        August 24, 1935 (40 U.S.C. 270a et seq.), 
                        commonly referred to as the ``Miller Act''.
    (d) Contract Work Hours and Safety Standards Act.--
            (1) 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))).''.
            (2) 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))''.
    (e) 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''.
    (f) Certain Procurement Integrity Requirements.--
            (1) Certification requirement.--Subsection (e)(7)(A) of 
        section 27 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''.
             (2) 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)''.
    (g) Solid Waste Disposal Act.--Section 6002(a) of the Solid Waste 
Disposal Act (42 U.S.C. 6962(a)) is amended by striking out all that 
follows ``with respect to any'' and inserting in lieu thereof 
``contract 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))).''.

                     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 ``the 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.--
            (1) Property and services generally.--Section 303(g) of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 253(g)) is amended--
                    (A) 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'';
                    (B) by striking out paragraphs (2) and (5);
                    (C) in paragraph (3)--
                            (i) by striking out ``small purchase 
                        threshold'' and inserting in lieu thereof 
                        ``simplified acquisition threshold''; and
                            (ii) by striking out ``small purchase 
                        procedures'' and inserting in lieu thereof 
                        ``simplified procedures'';
                    (E) in paragraph (4), by striking out ``small 
                purchase procedures'' and inserting in lieu thereof 
                ``the simplified procedures''; and
                    (F) by inserting after paragraph (1) the following 
                new paragraph (2):
    ``(2)(A) The Administrator of General Services shall prescribe 
regulations that provide special simplified procedures for acquisitions 
of leasehold interests in real property at rental rates that do not 
exceed the simplified acquisition threshold.
    ``(B) For purposes of subparagraph (A), the rental rate or rates 
under a multiyear lease do not exceed the simplified acquisition 
threshold if the average annual amount of the rent payable for the 
period of the lease does not exceed the simplified acquisition 
threshold.''.
    (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)), as amended 
by section 1071, is further amended in the second 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 section 
25(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. 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.

SEC. 4102. ACQUISITIONS FROM SMALL BUSINESSES.

    (a) Set-Aside Priority.--Section 15 of the Small Business Act (15 
U.S.C. 644) is amended by striking out subsections (e) and (f).
    (b) Certificate of Competence.--Section 804 of Public Law 103-484 
(106 Stat. 2447; 10 U.S.C. 2305 note) is repealed.

SEC. 4103. CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS.

    (a) Procurement Procedures Authorized.--Section 8 of the Small 
Business Act (15 U.S.C. 637) is amended by inserting after subsection 
(b) the following new subsection:
    ``(c)(1) To facilitate the attainment of a goal for the 
participation of small business concerns owned and controlled by 
socially and economically disadvantaged individuals that is established 
for a Federal agency pursuant to section 15(g)(1), the head of the 
agency may enter into contracts using--
            ``(A) less than full and open competition by restricting 
        the competition for such awards to small business concerns 
        owned and controlled by socially and economically disadvantaged 
        individuals described in subsection (d)(3)(C) of this section; 
        and
            ``(B) a price evaluation preference not in excess of 10 
        percent when evaluating an offer received from such a small 
        business concern as the result of an unrestricted solicitation.
    ``(2) Paragraph (1) does not apply to the Department of Defense.''.
    (b) Implementation Through the Federal Acquisition Regulation.--
            (1) In general.--The Federal Acquisition Regulation shall 
        be amended to provide for uniform implementation of the 
        authority provided in section 8(c) of the Small Business Act, 
        as added by subsection (a).
            (2) Matters to be addressed.--The provisions of the Federal 
        Acquisition Regulation prescribed pursuant to paragraph (1) 
        shall include--
                    (A) conditions for the use of advance payments;
                    (B) provisions for contract payment terms that 
                provide for--
                            (i) accelerated payment for work performed 
                        during the period for contract performance; and
                            (ii) full payment for work performed;
                    (C) guidance on how contracting officers may use, 
                in solicitations for various classes of products or 
                services, a price evaluation preference pursuant to 
                section 8(c)(1)(B) of the Small Business Act, as added 
                by subsection (a), to provide a reasonable advantage to 
                small business concerns owned and controlled by 
                socially and economically disadvantaged individuals 
                without effectively eliminating any participation of 
                other small business concerns; and
                    (D)(i) procedures for a person to request the head 
                of Federal agency to determine whether the use of 
                competitions restricted to small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals at a contracting activity of 
                such agency has caused a particular industry category 
                to bear a disproportionate share of the contracts 
                awarded to attain the goal established for that 
                contracting activity; and
                    (ii) guidance for limiting the use of such 
                restricted competitions in the case of any contracting 
                activity and class of contracts determined in 
                accordance with such procedures to have caused a 
                particular industry category to bear a disproportionate 
                share of the contracts awarded to attain the goal 
                established for that contracting activity.
    (c) Termination.--Section 8(c) of the Small Business Act, as added 
by subsection (a), shall cease to be effective at the end of September 
30, 1999.

SEC. 4104. PROCUREMENT GOALS FOR SMALL BUSINESS CONCERNS OWNED BY 
              WOMEN.

    (a) Goals.--Section 15 of the Small Business Act (15 U.S.C. 644) is 
amended--
            (1) by striking out ``and small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals'' each place it appears in the first sentence and 
        fourth sentences of subsection (g)(1), the second sentence of 
        subsection (g)(2), and paragraphs (1), (2)(A), (2)(D), and 
        (2)(E) of subsection (h) and inserting in lieu thereof ``, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, and small business 
        concerns owned and controlled by women'';
            (2) in subsection (g)--
                    (A) by inserting after the third sentence of 
                paragraph (1) the following: ``The Government-wide goal 
                for participation by small business concerns owned and 
                controlled by women shall be established at not less 
                than 5 percent of the total value of all prime contract 
                and subcontract awards for each fiscal year.'';
                    (B) in the first sentence of paragraph (2), by 
                striking out ``and by small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals,'' and inserting in lieu thereof ``, by 
                small business concerns owned and controlled by 
                socially and economically disadvantaged individuals, 
                and by small business concerns owned and controlled by 
                women''; and
                    (C) in the fourth sentence of paragraph (2), by 
                inserting after ``including participation by small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals'' the following: 
                ``and by participation small business concerns owned 
                and controlled by women''; and
            (3) in subsection (h)(2)(F), by striking out ``women-owned 
        small business enterprises'' and inserting in lieu thereof 
        ``small business concerns owned and controlled by women''.
    (b) Subcontract Participation.--Section 8(d) of such Act (15 U.S.C. 
637(d)) is amended--
            (1) by striking out ``and small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals'' both places it appears in paragraph (1), both 
        places it appears in paragraph (3)(A), in paragraph (4)(D), in 
        subparagraphs (A), (C), and (F) of paragraph (6), and in 
        paragraph (10)(B) and inserting in lieu thereof ``, small 
        business concerns owned and controlled by socially and 
        economically disadvantaged individuals, and small business 
        concerns owned and controlled by women'';
            (2) by striking out subparagraph (D) in paragraph (3) and 
        inserting in lieu thereof the following:
            ``(E) Contractors acting in good faith may rely on written 
        representations by their subcontractors regarding their status 
        as either a small business concern, a small business concern 
        owned and controlled by socially and economically disadvantaged 
        individuals, or a small business concern owned and controlled 
        by women.'';
            (3) in paragraph (3), by inserting after subparagraph (C) 
        the following new subparagraph (D):
            ``(D) The term `small business concern owned and controlled 
        by women' shall mean a small business concern--
                    ``(i) which is at least 51 per centum owned by one 
                or more women; or, in the case of any publicly owned 
                business, at least 51 per centum of the stock of which 
                is owned by one or more women; and
                    ``(ii) whose management and daily business 
                operations are controlled by one or more women.''; and
            (4) in paragraph (4)(E), by inserting ``and for small 
        business concerns owned and controlled by women'' after ``as 
        defined in paragraph (3) of this subsection''.
    (c) Misrepresentations of Status.--(1) Subsection (d)(1) of section 
16 of such Act (15 U.S.C. 645) is amended by striking out ``or `small 
business concern owned and controlled by socially and economically 
disadvantaged individuals''' and inserting in lieu thereof ``, a `small 
business concern owned and controlled by socially and economically 
disadvantaged individuals', or a `small business concerns owned and 
controlled by women'''.
    (2) Subsection (e) of such section is amended by striking out ``or 
`small business concern owned and controlled by socially and 
economically disadvantaged individuals''' and inserting in lieu thereof 
``, a `small business concern owned and controlled by socially and 
economically disadvantaged individuals', or a `small business concerns 
owned and controlled by women'''.
    (d) Definition.--Section 3 of such Act (15 U.S.C. 632) is amended 
by adding at the end the following new subsection:
    ``(n) For the purposes of this Act, a small business concern is a 
small business concern owned and controlled by women if--
            ``(1) at least 51 percent of small business concern is 
        owned by one or more women or, in the case of any publicly 
        owned business, at least 51 percent of the stock of which is 
        owned by one or more women; and
            ``(2) the management and daily business operations of the 
        business are controlled by one or more women.''.

SEC. 4105. DEVELOPMENT OF DEFINITIONS REGARDING CERTAIN SMALL BUSINESS 
              CONCERNS.

    (a) Review Required.--
            (1) Definitions to be identified.--The Administrator for 
        Federal Procurement Policy shall conduct a comprehensive review 
        of Federal laws, as in effect on November 1, 1994, to identify 
        and catalogue all of the provisions in such laws that define 
        (or describe for definitional purposes) the small business 
        concerns set forth in paragraph (2) for purposes of authorizing 
        the participation of such small business concerns as prime 
        contractors or subcontractors in--
                    (A) contracts awarded directly by the Federal 
                Government or subcontracts awarded under such 
                contracts; or
                    (B) contracts and subcontracts funded, in whole or 
                in part, by Federal financial assistance under grants, 
                cooperative agreements, or other forms of Federal 
                assistance.
            (2) Covered small business concerns.--The small business 
        concerns referred to in paragraph (1) are as follows:
                    (A) Small business concerns owned and controlled by 
                socially and economically disadvantaged individuals.
                    (B) Minority-owned small business concerns.
                    (C) Small business concerns owned and controlled by 
                women.
                    (D) Woman-owned small business concerns.
    (b) Matters To Be Developed.--On the basis of the results of the 
review carried out under subsection (a), the Administrator for Federal 
Procurement Policy shall develop--
            (1) uniform definitions for the small business concerns 
        referred to in subsection (a)(2);
            (2) uniform agency certification standards and procedures 
        for--
                    (A) determinations of whether a small business 
                concern qualifies as a small business concern referred 
                to in subsection (a)(2) under an applicable standard 
                for purposes contracts and subcontracts referred to in 
                subsection (a)(1); and
                    (B) reciprocal recognition by an agency of a 
                decision of another agency regarding whether a small 
                business concern qualifies as a small business concern 
                referred to in subsection (a)(2) for such purposes; and
            (3) such other related recommendations as the Administrator 
        determines appropriate consistent with the review results.
    (c) Procedures and Schedule.--
            (1) Participation by certain interested parties.--The 
        Administrator for Federal Procurement Policy shall provide for 
        the participation in the review and activities under 
        subsections (a) and (b) by representatives of--
                    (A) the Small Business Administration (including 
                the Office of the Chief Counsel for Advocacy);
                    (B) the Minority Business Development Agency of the 
                Department of Commerce;
                    (C) the Department of Transportation;
                    (D) the Environmental Protection Agency; and
                    (E) such other executive departments and agencies 
                as the Administrator considers appropriate.
            (2) Consultation with certain interested parties.--In 
        carrying out subsections (a) and (b), the Administrator shall 
        consult with representatives of organizations representing--
                    (A) minority-owned business enterprises;
                    (B) women-owned business enterprises; and
                    (C) other organizations that the Administrator 
                considers appropriate.
            (3) Schedule.--Not later than 60 days after the date of the 
        enactment of this Act, the Administrator shall publish in the 
        Federal Register a notice which--
                    (A) lists the provisions of law identified in the 
                review carried out under subsection (a);
                    (B) describes the matters to be developed on the 
                basis of the results of the review pursuant to 
                subsection (b);
                    (C) solicits public comment regarding the matters 
                described in the notice pursuant to subparagraphs (A) 
                and (B) for a period of not less than 60 days; and
                    (D) addresses such other matters as the 
                Administrator considers appropriate to ensure the 
                comprehensiveness of the review and activities under 
                subsections (a) and (b).
    (d) Report.--Not later than May 1, 1995, the Administrator for 
Federal Procurement Policy shall submit to the Committees on Small 
Business of the Senate and the House of Representatives a report on the 
results of the review carried out under subsection (a) and the actions 
taken under subsection (b). The report shall include a discussion of 
the results of the review, a description of the consultations conducted 
and public comments received, and the Administrator's recommendations 
with regard to the matters identified under subsection (b).

               Subtitle C--Miscellaneous Acquisition Laws

SEC. 4151. PROHIBITION ON USE OF FUNDS FOR DOCUMENTING ECONOMIC OR 
              EMPLOYMENT IMPACT OF CERTAIN ACQUISITION PROGRAMS.

    (a)  Revision and Codification.--
            (1) 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. 2247. 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.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such subchapter is amended by adding at the end 
        the following new item:

``2247. Prohibition on use of funds for documenting economic or 
                            employment impact of certain acquisition 
                            programs.''.
    (b) Repeal of Superseded Law.--Section 9048 of Public Law 102-396 
(106 Stat. 1913) is repealed.

SEC. 4152. 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--ACQUISITION MANAGEMENT

                Subtitle A--Armed Services Acquisitions

SEC. 5001. PERFORMANCE BASED MANAGEMENT.

    (a) Policy and Goals for Performance Based Management of 
Programs.--
            (1) In general.--Chapter 131 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2219. Performance based management: acquisition programs
    ``(a) Congressional Policy.--It is the policy of Congress that--
            ``(1) the Department of Defense should achieve, on average, 
        90 percent of the cost and schedule goals established for the 
        research and development programs and acquisition programs of 
        the Department of Defense without reducing the performance or 
        capabilities of the items being acquired; and
            ``(2) the average period necessary for converting an 
        emerging technology into initial operational capability for the 
        Department of Defense should not exceed 8 years.
    ``(b) Establishment of Goals.--(1) The Secretary of Defense shall 
approve or define the cost, performance, and schedule goals for major 
defense acquisition programs of the Department of Defense.
    ``(2) The Comptroller of the Department of Defense shall evaluate 
the cost goals proposed for each major defense acquisition program of 
the Department.
    ``(c) Identification of Noncompliant Programs.--Whenever it is 
necessary to do so in order to implement the policy set out in 
subsection (a), the Secretary of Defense shall--
            ``(1) identify and consider whether there is a continuing 
        need for programs that are significantly behind schedule, over 
        budget, or not in compliance with performance or capability 
        requirements taking into consideration--
                    ``(A) the needs of the Department known as of the 
                time of consideration;
                    ``(B) the state of the technology or technologies 
                relevant to the programs and to the needs of the 
                Department;
                    ``(C) the estimated costs and projected schedules 
                necessary for the completion of such programs; and
                    ``(D) other pertinent information; and
            ``(2) identify existing and potential research and 
        development programs and acquisition programs that are suitable 
        alternatives for programs considered pursuant to paragraph (1).
    ``(d) Annual Reporting Requirement.--The Secretary of Defense shall 
include in the annual report submitted to Congress pursuant to section 
113(c) of this title an assessment of the progress made in implementing 
the policy stated in subsection (a). The Secretary shall use data from 
existing management systems in making the assessment.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2219. Performance based management: acquisition programs.''.
    (b) Enhanced System of Performance Incentives.--Within one year 
after the date of the enactment of this Act, the Secretary of Defense 
shall review the incentives and personnel actions available to the 
Secretary for encouraging excellence in the defense acquisition 
workforce and provide an enhanced system of incentives for the 
encouragement of excellence in such workforce. The enhanced system of 
incentives shall, to the maximum extent consistent with applicable 
law--
            (1) relate pay to performance (including the extent to 
        which the performance of personnel in such workforce 
        contributes to achieving the cost goals, schedule goals, and 
        performance goals established for acquisition programs of the 
        department pursuant to section 2219(b) of title 10, as added by 
        subsection (a)); and
            (2) provide for consideration, in personnel evaluations and 
        promotion decisions, of the extent to which the performance of 
        personnel in such workforce contributes to achieving the cost 
        goals, schedule goals, and performance goals established for 
        acquisition programs of the department pursuant to section 
        2219(b) of title 10, United States Code, as added by subsection 
        (a).
    (c) Recommended Legislation.--Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress any recommended legislation that the Secretary 
considers necessary to carry out section 2219 of title 10, United 
States Code, as added by subsection (a), and otherwise to facilitate 
and enhance management of Department of Defense acquisition programs 
and the defense acquisition workforce on the basis of performance.

SEC. 5002. RESULTS ORIENTED ACQUISITION PROGRAM CYCLE.

    The Secretary of Defense shall define in regulations a simplified 
acquisition program cycle that is results-oriented. The Secretary shall 
consider including in the regulations provisions for the following:
            (1) Program phases as follows:
                    (A) An integrated decision team meeting which--
                            (i) may be requested by a potential user of 
                        the system or component to be acquired, the 
                        head of a laboratory, or a program office on 
                        such bases as the emergence of a new military 
                        requirement, cost savings opportunity, or new 
                        technology opportunity;
                            (ii) is conducted by an acquisition program 
                        executive officer; and
                            (iii) is usually completed within 1 to 3 
                        months.
                    (B) A prototype development and testing phase 
                which--
                            (i) includes operational tests and concerns 
                        relating to manufacturing operations and life 
                        cycle support;
                            (ii) is usually completed within 6 to 36 
                        months; and
                            (iii) produces sufficient numbers of 
                        prototypes to assess operational utility.
                    (C) Product integration, development, and testing 
                which--
                            (i) includes full-scale development, 
                        operational testing, and integration of 
                        components; and
                            (ii) is usually completed within 1 to 5 
                        years.
                    (D) Production, integration into existing systems, 
                or production and integration into existing systems.
            (2) An acquisition program approval process for major 
        program decisions which consists of the following:
                    (A) One major decision point--
                            (i) which occurs for an acquisition program 
                        before the program proceeds into product 
                        integration and development; and
                            (ii) at which the Under Secretary of 
                        Defense for Acquisition and Technology, in 
                        consultation with the Vice Chairman of the 
                        Joint Chiefs of Staff reviews the program, 
                        determines whether the program should continue 
                        to be carried out beyond product integration 
                        and development, and decides whether to commit 
                        to further development, to require further 
                        prototyping, or to terminate the program.
                    (B) Consideration of the potential benefits, 
                affordability, needs, and risks of an acquisition 
                program in the review of the acquisition program.

SEC. 5003. DEFENSE ACQUISITION PILOT PROGRAM DESIGNATIONS.

    (a) Programs and Waivers.--The National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160) is amended by inserting the 
following new section at the end of subtitle D of title VIII:

``SEC. 840. DEFENSE ACQUISITION PILOT PROGRAM DESIGNATIONS.

    ``(a) Eligible Programs.--The Secretary of Defense is authorized to 
designate the following defense acquisition programs for participation 
in the defense acquisition pilot program authorized by section 809 of 
the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 
2430 note):
            ``(1) Defense Personnel Support Center medical, clothing 
        and textile, and subsistence programs with respect to the 
        following:
                    ``(A) All contracts for processed fruits and 
                vegetables and frozen seafood items for both depot 
                stock and direct vendor delivery.
                    ``(B) All contracts in the subsistence prime vendor 
                program for grocery items.
                    ``(C) All contracts in the Mail Order Pharmacy 
                Program, the prime vendor programs for pharmaceuticals 
                and for medical surgical items for delivery to military 
                hospitals.
                    ``(D) All contracts in the medical electronic 
                commerce program for acquisition for depot stock and 
                direct vendor delivery.
                    ``(E) All contracts for the following items: dress 
                coats (small lots), dress coats, duffel bags, Navy work 
                clothing, general purpose tents, suitcases, gloves for 
                electrical workers, boot flyers, socks, drawers, 
                undershirts, and items offered under the Broad Agency 
                Announcements for Clothing and Textiles Advanced 
                Business Practices Demonstration Program.
            ``(2) The Fire Support Combined Arms Tactical Trainer 
        program with respect to all contracts directly related to the 
        procurement of a training system (including related hardware, 
        software, and subsystems) to perform collective training of 
        field artillery gunnery team components with development of 
        software as required to generate the training exercises and 
        component interfaces.
            ``(3) The Joint Direct Attack Munition program (JDAM I) 
        with respect to all contracts directly related to the 
        development and procurement of a strap-on guidance kit, using 
        an inertially guided, Global Positioning System updated 
        guidance kit for inventory 1,000 and 2,000 pound bombs.
            ``(4) The Joint Primary Aircraft Training System (JPATS) 
        with respect to all contracts directly related to the 
        acquisition of a new primary trainer aircraft to fulfill Air 
        Force and Navy joint undergraduate aviation training 
        requirements, and an associated ground-based training system 
        consisting of air crew training devices (simulators), 
        courseware, a Training Management System, and contractor 
        support for the life of the system.
            ``(5) The Commercial Derivatives Aircraft program with 
        respect to all contracts directly related to the acquisition or 
        upgrading of civil-derivative aircraft for use in (A) foreign 
        military sales of Airborne Warning and Control Systems to 
        foreign governments with modifications of a type customarily 
        provided to commercial customers, or (B) future Air Force 
        airlift and tanker requirements.
            ``(6) The Commercial Derivative Engine program with respect 
        to all contracts directly related to the acquisition of (A) 
        commercially derived engines (including spare engines), 
        logistics support equipment, technical orders, management data, 
        and initial spare parts for use in the C-17A production line, 
        and (B) commercially derived engines to support the purchase of 
        commercial-derivative aircraft to meet future Air Force airlift 
        and tanker requirements, including engine replacement and 
        upgrades.
    ``(b) Waiver Authority.--Subject to section 809(c) of the National 
Defense Authorization Act for Fiscal Year 1991, the Secretary of 
Defense is authorized--
            ``(1) to apply any amendment or repeal of a provision of 
        law made in the Federal Acquisition Streamlining Act of 1994 to 
        the programs described in subsection (a) before the effective 
        date of such amendment or repeal; and
            ``(2) to apply to a procurement of noncommercial items 
        under such programs--
                    ``(A) any authority provided in such Act (or in an 
                amendment made by a provision of such Act) to waive a 
                provision of law in the case of commercial items, and
                    ``(B) any exception applicable under such Act (or 
                an amendment made by a provision of such Act) in the 
                case of commercial items,
        before the effective date of such provision (or amendment) to 
        the extent that the Secretary determines necessary to test the 
        application of such waiver or exception to procurements of 
        noncommercial items.
    ``(c) Pilot Program Implementation.--In exercising the authority 
provided in section 809 of the National Defense Authorization Act for 
1991, and in accordance with sections 833 through 839 of this Act, the 
Secretary of Defense, shall take the following actions:
            ``(1) Mission-oriented program management.--For one or more 
        of the defense acquisition programs designated for 
        participation in the defense acquisition pilot program, 
        prescribe and implement procedures which--
                    ``(A) provide for interaction between the program 
                manager and the commander of the operational command 
                responsible for the requirement for the equipment 
                acquired;
                    ``(B) include provisions for a determination by the 
                commander that items proposed for procurement fulfill 
                the need defined in approved requirements documents; 
                and
                    ``(C) may include a role for the operational 
                commander in decision making for program milestone 
                decisions and performance of acceptance testing of 
                items acquired.
            ``(2) Savings objectives.--Not later than 45 days after the 
        date of enactment of the Federal Acquisition Streamlining Act 
        of 1994, identify for each defense acquisition program 
        participating in the pilot program quantitative measures and 
        goals for reducing acquisition management costs.
            ``(3) Program phases.--For each defense acquisition program 
        participating in the pilot program, incorporate in an approved 
        acquisition strategy a program review process that provides 
        senior acquisition officials with reports that--
                    ``(A) contain essential information on program 
                results at quarterly intervals;
                    ``(B) reduce data requirements from the current 
                major program review reporting requirements; and
                    ``(C) include data on program costs estimates, 
                actual expenditures, performance estimates, performance 
                data from tests, and, consistent with existing 
                statutes, the minimum necessary other data items 
                required to ensure the appropriate expenditure of funds 
                appropriated for that program.
            ``(4) Program work force policies.--With regard to the 
        review of incentives and personnel actions required under 
        section 836 of this Act--
                    ``(A) not later than 60 days after the date of the 
                enactment of the Federal Acquisition Streamlining Act 
                of 1994--
                            ``(i) complete the review; and
                            ``(ii) on the basis of the review, define 
                        one or more systems that relate incentives, 
                        including pay, to achievement of budgets, 
                        schedules, and performance requirements;
                    ``(B) not later than 120 days after the date of the 
                enactment of the Federal Acquisition Streamlining Act 
                of 1994--
                            ``(i) apply such a system of incentives to 
                        not less than one defense acquisition program 
                        participating in the pilot program; and
                            ``(ii) provide for an assessment of the 
                        effectiveness of that system; and
                    ``(C) incorporate the results of actions taken 
                pursuant to this paragraph into the development of 
                regulations for the implementation of section 5001(b) 
                of the Federal Acquisition Streamlining Act of 1994.
            ``(5) Efficient contracting process.--Take any additional 
        actions that the Secretary considers necessary to waive 
        regulations, not required by statute, that affect the 
        efficiency of the contracting process, including, in the 
        Secretary's discretion, defining alternative techniques to 
        reduce reliance on military specifications and standards in 
        contracts for the defense acquisition programs participating in 
        the pilot program.
            ``(6) Contract administration: performance based contract 
        management.--For at least one participating defense acquisition 
        program for which a determination is made to make payments for 
        work in progress under the authority of section 2307 of title 
        10, United States Code, define payment milestones on the basis 
        of quantitative measures of results.
            ``(7) Contractor performance assessment.--Collect and 
        evaluate performance information on each contract entered into 
        for a defense acquisition program participating in the pilot 
        program, including information on cost, schedule, and technical 
        performance for each contractor supporting a participating 
        program.
    ``(d) Applicability.--(1) Subsection (b) applies with respect to--
            ``(A) a contract that is awarded or modified during the 
        period described in paragraph (2); and
            ``(B) a contract that is awarded before the beginning of 
        such period and is to be performed (or may be performed), in 
        whole or in part, during such period.
    ``(2) The period referred to in paragraph (1) is the period that 
begins 45 days after the date of the enactment of the Federal 
Acquisition Streamlining Act of 1994 and ends on September 30, 1998.''.
    (b) Rule of Construction.--Nothing in section 840 of the National 
Defense Authorization Act for Fiscal Year 1994, as added by subsection 
(a), shall be construed as authorizing the appropriation or obligation 
of funds for the programs designated for participation in the defense 
acquisition pilot program under the authority of subsection (a) of such 
section 840.

                Subtitle B--Civilian Agency Acquisitions

SEC. 5051. PERFORMANCE BASED MANAGEMENT.

    (a) Policy and Goals for Performance Based Management of 
Programs.--
            (1) In general.--Title III of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 301 et seq.), as 
        amended by sections 1552 and 1553, is further amended by adding 
        at the end the following new section:

          ``performance based management: acquisition programs

    ``Sec. 311. (a) Congressional Policy.--It is the policy of Congress 
that the head of each executive agency should achieve, on average, 90 
percent of the cost and schedule goals established for the research and 
development programs and acquisition programs of the agency without 
reducing the performance or capabilities of the items being acquired.
    ``(b) Establishment of Goals.--(1) The head of each executive 
agency shall approve or define the cost, performance, and schedule 
goals for major acquisition programs of the agency.
    ``(2) The chief financial officer of an executive agency shall 
evaluate the cost goals proposed for each major defense acquisition 
program of the agency.
    ``(c) Identification of Noncompliant Programs.--Whenever it is 
necessary to do so in order to implement the policy set out in 
subsection (a), the head of an executive agency shall--
            ``(1) identify and consider whether there is a continuing 
        need for programs that are significantly behind schedule, over 
        budget, or not in compliance with performance or capability 
        requirements taking into consideration--
                    ``(A) the needs of the agency known as of the time 
                of consideration;
                    ``(B) the state of the technology or technologies 
                relevant to the programs and to the needs of the 
                agency;
                    ``(C) the estimated costs and projected schedules 
                necessary for the completion of such programs; and
                    ``(D) other pertinent information; and
            ``(2) identify existing and potential research and 
        development programs and acquisition programs that are suitable 
        alternatives for programs considered pursuant to paragraph 
        (1).''.
            (2) Clerical amendment.--The table of contents in the first 
        section of such Act, as amended by sections 1552 and 1553, is 
        further amended by inserting after the item relating to section 
        310 the following new item:

``Sec. 311. Performance based management: acquisition programs.''.
    (b) Annual Reporting Requirement.--Section 6 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405), as amended by section 
1091, is further amended by adding at the end the following new 
subsection:
    ``(k) The Administrator shall submit to Congress, on an annual 
basis, an assessment of the progress made in executive agencies in 
implementing the policy stated in section 311(a) of the Federal 
Property and Administrative Services Act of 1949. The Administrator 
shall use data from existing management systems in making the 
assessment.''.
    (c) Enhanced System of Performance Incentives.--Within one year 
after the date of the enactment of this Act, the Administrator for 
Federal Procurement Policy, in consultation with appropriate officials 
in other departments and agencies of the Federal Government, shall, to 
the maximum extent consistent with applicable law--
            (1) establish policies and procedures for the heads of such 
        departments and agencies to designate acquisition positions and 
        manage employees (including the accession, education, training 
        and career development of employees) in the designated 
        acquisition positions;
            (2) extend to the acquisition workforce of the entire 
        executive branch the acquisition workforce policies contained 
        in chapter 87 of title 10, United States Code, relating to the 
        acquisition workforce of the Department of Defense; and
            (3) review the incentives and personnel actions available 
        to the heads of department and agencies of the Federal 
        Government for encouraging excellence in the acquisition 
        workforce of the Federal Government and provide an enhanced 
        system of incentives for the encouragement of excellence in 
        such workforce which--
                    (A) relates pay to performance (including the 
                extent to which the performance of personnel in such 
                workforce contributes to achieving the cost goals, 
                schedule goals, and performance goals established for 
                acquisition programs pursuant to section 311(b) of the 
                Federal Property and Administrative Services Act of 
                1949, as added by subsection (a)); and
                    (B) provides for consideration, in personnel 
                evaluations and promotion decisions, of the extent to 
                which the performance of personnel in such workforce 
                contributes to achieving such cost goals, schedule 
                goals, and performance goals.
    (d) Recommended Legislation.--Not later than one year after the 
date of the enactment of this Act, the Administrator for Federal 
Procurement Policy shall submit to Congress any recommended legislation 
that the Secretary considers necessary to carry out section 311 of the 
Federal Property and Administrative Services Act of 1949, as added by 
subsection (a), and otherwise to facilitate and enhance management of 
Federal Government acquisition programs and the acquisition workforce 
of the Federal Government on the basis of performance.

SEC. 5052. RESULTS-ORIENTED ACQUISITION PROCESS.

    (a) Development of Process Required.--The Administrator for Federal 
Procurement Policy, in consultation with the heads of appropriate 
Federal agencies, shall develop a results-oriented acquisition process 
for implementation by agencies in acquisitions of property and services 
by the Federal agencies. The process shall include the identification 
of quantitative measures and standards for determining the extent to 
which an acquisition of noncommercial items by a Federal agency 
satisfies the needs for which the items are being acquired.
    (b) Inapplicability of Process to Department of Defense.--The 
process developed pursuant to subsection (a) may not be applied to the 
Department of Defense.

                       Subtitle C--Miscellaneous

SEC. 5091. CONTRACTOR EXCEPTIONAL PERFORMANCE AWARDS.

    The Office of Federal Procurement Policy Act, as amended by section 
4021, is further amended by adding at the end the following:

              ``contractor exceptional performance awards

    ``Sec. 31. (a) Establishment.--There is hereby established an 
executive branch program to recognize and promote exceptional contract 
performance by Federal Government contractors.
    ``(b) Selection.--(1) The Administrator shall ensure the 
establishment of criteria for selection of contractors to receive 
exceptional performance awards under the program.
    ``(2) The head of an executive agency may select one or more agency 
contractors to receive an exceptional performance award under the 
program.
    ``(c) Award Ceremony.--The Vice President, or the head of the 
executive agency selecting a contractor for an exceptional performance 
award, shall present the award to the contractor with such ceremony as 
the Vice President or head of the agency, as the case may be, considers 
appropriate.''.

SEC. 5092. DEPARTMENT OF DEFENSE ACQUISITION OF INTELLECTUAL PROPERTY 
              RIGHTS.

    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.''.

                     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 Federal 
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 
                adviser, 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, and 2397c 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, and 2397c.
            (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 
section 6001 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 1995 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 1092, 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 a person described in subsection 
(b) may be paid by an agency for services to conduct evaluations or 
analyses of any aspect of a proposal submitted for an acquisition 
unless personnel described in subsection (b) with adequate training and 
capabilities to perform such evaluations and analyses are not readily 
available within the agency or another Federal agency, as determined in 
accordance with standards and procedures prescribed in the Federal 
Acquisition Regulation.
    ``(2) In the administration of this subsection, the head of each 
agency shall determine in accordance with the standards and procedures 
set forth in the Federal Acquisition Regulation whether--
            ``(A) a sufficient number of personnel described in 
        subsection (b) within the agency or another Federal agency are 
        readily available to perform a particular evaluation or 
        analysis for the agency head making the determination; and
            ``(B) the readily available personnel have the training and 
        capabilities necessary to perform the evaluation or analysis.
    ``(b) Covered Personnel.--For purposes of subsection (a), the 
personnel described in this subsection are as follows:
            ``(1) An employee, as defined in section 2105 of title 5, 
        United States Code.
            ``(2) A member of the Armed Forces of the United States.
            ``(3) A person assigned to a Federal agency pursuant to 
        subchapter VI of chapter 33 of title 5, United States Code.
    ``(c) Rule of Construction.--Nothing in this section is intended to 
affect the relationship between the Federal Government and a federally 
funded research and development center.''.
    (b) Requirement for Guidance and Regulations.--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--
            (1) review part 37 of title 48 of the Code of Federal 
        Regulations as it relates to the use of advisory and assistance 
        services; and
            (2) provide guidance and promulgate regulations regarding--
                    (A) 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
                    (B) the manner in which personnel with expertise 
                may be shared with agencies needing expertise for such 
                acquisitions.

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. INTERESTS OF MEMBERS OF CONGRESS.

    Section 3741 of the Revised Statutes (41 U.S.C. 22) is amended to 
read as follows:
    ``No member of Congress shall be admitted to any share or part of 
any contract or agreement made, entered into, or accepted by or on 
behalf of the United States, or to any benefit to arise thereupon.''.

SEC. 6054. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED FOR 
              ACQUISITION REGULATIONS.

    (a) Increased Period.--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.''.
    (b) Technical Amendment.--Section 22(d) of such Act is amended by 
designating the second sentence as paragraph (3).

                  Subtitle C--Whistleblower Protection

SEC. 6101. ARMED SERVICES PROCUREMENTS.

    (a) Whistleblower Protections for Contractor Employees.--Section 
2409 of title 10, United States Code, is amended--
            (1) by striking out subsection (d);
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Remedy and Enforcement Authority.--(1) If the Secretary of 
Defense determines that a defense contractor has subjected a person to 
a reprisal prohibited by subsection (a), the Secretary may take one or 
more of the following actions:
            ``(A) Order the defense contractor to take affirmative 
        action to abate the reprisal.
            ``(B) Order the defense contractor to reinstate the person 
        to the position that the person held before the reprisal, 
        together with the compensation (including back pay), employment 
        benefits, and other terms and conditions of employment that 
        would apply to the person in that position if the reprisal had 
        not been taken.
            ``(C) Order the defense contractor to pay the complainant 
        an amount equal to the aggregate amount of all costs and 
        expenses (including attorney's fees and expert witnesses' fees) 
        that were reasonably incurred by the complainant for, or in 
        connection with, bringing the complaint regarding the reprisal, 
        as determined by the Secretary.
    ``(2) Whenever a person fails to comply with an order issued under 
paragraph (1), the Secretary shall file an action for enforcement of 
such order in the United States district court for a district in which 
the reprisal was found to have occurred. In any action brought under 
this paragraph, the court may grant appropriate relief, including 
injunctive relief and compensatory and exemplary damages.
    ``(3) Any person adversely affected or aggrieved by an order issued 
under paragraph (1) may obtain review of the order's conformance with 
this subsection, and any regulations issued to carry out this section, 
in the United States court of appeals for a circuit in which the 
reprisal is alleged in the order to have occurred. No petition seeking 
such review may be filed more than 60 days after issuance of the 
Secretary's order. Review shall conform to chapter 7 of title 5.''.
    (b) Related Law.--
            (1) Repeal.--Section 2409a 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 2409a.

SEC. 6102. GOVERNMENTWIDE WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR 
              EMPLOYEES.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 5091, is further amended by adding at the 
end the following new section:

  ``contractor employees: protection from reprisal for disclosure of 
                          certain information

    ``Sec. 32. (a) Prohibition of Reprisals.--An employee of an 
executive agency contractor may not be discharged, demoted, or 
otherwise discriminated against as a reprisal for disclosing to a 
Member of Congress or an authorized official of the agency or the 
Department of Justice information relating to a substantial violation 
of law related to an agency contract (including the competition for or 
negotiation of an agency contract).
    ``(b) Investigation of Complaints.--A person who believes that the 
person has been subjected to a reprisal prohibited by subsection (a) 
may submit a complaint to the Inspector General of the executive 
agency. Unless the Inspector General determines that the complaint is 
frivolous, the Inspector General shall investigate the complaint and, 
upon completion of such investigation, submit a report of the findings 
of the investigation to the person, the contractor concerned, and the 
head of the agency. In the case of an executive agency that does not 
have an inspector general, the duties of the inspector general under 
this section shall be performed by an official designated by the agency 
head.
    ``(c) Remedy and Enforcement Authority.--(1) If the head of an 
executive agency determines that an agency contractor has subjected a 
person to a reprisal prohibited by subsection (a), the agency head may 
take one or more of the following actions:
            ``(A) Order the contractor to take affirmative action to 
        abate the reprisal.
            ``(B) Order the contractor to reinstate the person to the 
        position that the person held before the reprisal, together 
        with the compensation (including back pay), employment 
        benefits, and other terms and conditions of employment that 
        would apply to the person in that position if the reprisal had 
        not been taken.
            ``(C) Order the contractor to pay the complainant an amount 
        equal to the aggregate amount of all costs and expenses 
        (including attorney's fees and expert witnesses' fees) that 
        were reasonably incurred by the complainant for, or in 
        connection with, bringing the complaint regarding the reprisal, 
        as determined by the Secretary.
    ``(2) Whenever a person fails to comply with an order issued under 
paragraph (1), the agency head shall file an action for enforcement of 
such order in the United States district court for a district in which 
the reprisal was found to have occurred. In any action brought under 
this paragraph, the court may grant appropriate relief, including 
injunctive relief and compensatory and exemplary damages.
    ``(3) Any person adversely affected or aggrieved by an order issued 
under paragraph (1) may obtain review of the order's conformance with 
this subsection, and any regulations issued to carry out this section, 
in the United States court of appeals for a circuit in which the 
reprisal is alleged in the order to have occurred. No petition seeking 
such review may be filed more than 60 days after issuance of the agency 
head's order. Review shall conform to chapter 7 of title 5, United 
States Code.
    ``(d) Construction.--Nothing in this section may be construed to 
authorize the discharge of, demotion of, or discrimination against an 
employee for a disclosure other than a disclosure protected by 
subsection (a) or to modify or derogate from a right or remedy 
otherwise available to the employee.
    ``(e) Coordination With Other Law.--This section does not apply 
with respect to the Department of Defense. For the corresponding 
provision of law applicable to the Department of Defense, see section 
2409 of title 10, United States Code.
    ``(f) Definition.--In this section, the term `Inspector General' 
means an Inspector General appointed under the Inspector General Act of 
1978.''.

                TITLE VII--DEFENSE TRADE AND COOPERATION

SEC. 7001. PURCHASES OF FOREIGN GOODS.

    (a) Repeal of Executed Requirements.--
            (1) 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).
            (2) Reporting requirement.--Section 9096(b) of Public Law 
        102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) is repealed.
    (b) Repeal of Redundant Provision.--
            (1) Consideration of national security objectives.--Section 
        2327 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 2327.

SEC. 7002. INTERNATIONAL COOPERATIVE AGREEMENTS.

    (a) Terminology Revisions.--Section 2531 of title 10, United States 
Code, is amended--
            (1) in the subsection captions for subsections (a) and (c), 
        by striking out ``MOUs and Related'' and inserting in lieu 
        thereof ``International'';
            (2) 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,'';
            (3) by striking out ``memorandum of understanding or 
        related agreement'' each place it appears and inserting in lieu 
        thereof ``international agreement'';
            (4) 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
            (5) in subsection (c)--
                    (A) by striking out ``A'' after ``Agreements.--'' 
                and inserting in lieu thereof ``An''; and
                    (B) by striking out ``memorandum or agreement'' and 
                inserting in lieu thereof ``international agreement''.
    (b) 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''.
    (c) Clerical Amendments.--
            (1) Section heading.--The heading of section 2531 of title 
        10, United States Code, is amended to read as follows:
``Sec. 2531. Defense international agreements''.
            (2) 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.''.

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 customarily 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, leased, or licensed to 
                        the general public;
                            ``(ii) has not been sold, leased, or 
                        licensed to the general public but has been 
                        offered for sale, lease, 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--
                            ``(i) modifications of a type customarily 
                        available in the commercial marketplace, or
                            ``(ii) minor modifications made to meet 
                        Federal Government requirements,
                would satisfy the criteria in subparagraph (A);
                    ``(C) any combination of items meeting the 
                requirements of subparagraph (A), (B), or (D) that are 
                of a type customarily combined and sold in combination 
                to the general public;
                    ``(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; and
                    ``(E) any item, combination of items, or service 
                referred to in subparagraph (A), (B), (C), or (D), 
                regardless of whether the item, combination of items, 
                or service is transferred between or among separate 
                divisions, subsidiaries, or affiliates of a contractor.
            ``(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 6102, is further 
amended by adding at the end the following new section:

 ``preference for acquisition of commercial items and nondevelopmental 
                                 items

    ``Sec. 33. (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, to the extent that commercial items suitable to meet 
        the agency's needs are not available, other nondevelopmental 
        items may be procured to fulfill such requirements; and
            ``(3) offerors of commercial items and other 
        nondevelopmental items are provided an opportunity to compete 
        in any procurement to fill such requirements.
    ``(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, to the 
        extent that commercial items suitable to meet the agency's 
        needs are not available, other nondevelopmental items;
            ``(4) state specifications in terms that enable and 
        encourage bidders and offerors to supply commercial items or, 
        to the extent that commercial items suitable to meet the 
        agency's needs are not available, 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
            ``(6) require training of appropriate personnel in the 
        acquisition of commercial 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, to 
the extent that commercial items suitable to meet the agency's needs 
are not available, 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.
    ``(3) In conducting market research, the head of an executive 
agency should not require potential sources to submit more than the 
minimum information that is necessary to make the determinations 
required in paragraph (2).''.
    (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. 34. (a) Contract Clauses and Other Clauses.--(1)(A) The 
Federal Acquisition Regulation shall include one or more sets of 
contract clauses containing the required 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 or executive orders 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.
    ``(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 
be required to be used in a 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.--(1) The Federal Acquisition Regulation 
shall provide that under appropriate conditions the head of an 
executive agency may require offerors to demonstrate that the items 
offered--
            ``(A) have either--
                    ``(i) achieved commercial market acceptance; or
                    ``(ii) been satisfactorily supplied to an executive 
                agency under current or recent contracts for the same 
                or similar requirements; and
            ``(B) otherwise meet the item description, specifications, 
        or other criteria prescribed in the public notice and 
        solicitation relating to the contract.
    ``(2) The Federal Acquisition Regulation shall provide guidance to 
ensure that the criteria for determining commercial market acceptance 
include the consideration of--
            ``(A) the minimum needs of the executive agency concerned; 
        and
            ``(B) the entire relevant commercial market, including 
        small businesses.
    ``(c) Use of Firm, Fixed Price Contracts.--The Federal Acquisition 
Regulation shall include a requirement that firm, fixed price contracts 
or fixed price with economic price adjustment 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 accept commercial warranties (including 
        extended warranties) offered by offerors of commercial items to 
        commercial customers 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.
    ``(e) Treatment of Transfers Between Affiliates.--The Federal 
Acquisition Regulation shall provide for a transfer of commercial items 
from one division, subsidiary, or affiliate of a contractor to another 
division, subsidiary, or affiliate of the contractor to be treated as a 
subcontract for purposes of section 35 of the Office of Federal 
Procurement Policy Act and the provisions of law amended by section 
8005 of the Federal Acquisition Streamlining Act of 1994.''.
    (b) Defense Contract Clauses.--
            (1)  Termination 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) shall cease to 
        be effective on the date on which the regulations implementing 
        section 34 of the Office of Federal Procurement Policy Act, as 
        added by subsection (a), become effective.
            (2) Savings provision.--Notwithstanding section 34(a) of 
        the Office of Federal Procurement Policy Act (as added by 
        subsection (a)), contracts of the Department of Defense entered 
        into before the date on which section 824(b) ceases to be 
        effective under paragraph (1), 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. 35. (a) In General.--The applicability of a provision of law 
described in subsection (c) that is enacted after the date of the 
enactment of the Federal Acquisition Streamlining Act of 1994 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.
    ``(b) Waiver of Applicability to Subcontracts.--(1) The 
applicability of a provision of law described in subsection (c) to 
subcontracts under a contract for the acquisition of commercial items 
or a subcontract for the acquisition of commercial components 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) Nothing in this subsection shall be construed to authorize 
the waiver of the applicability of any provision of law with respect 
to--
            ``(A) any contract with a prime contractor; or
            ``(B) any subcontract under a contract with a prime 
        contractor who does not substantially transform the commercial 
        items supplied under the contract.
    ``(c) Covered Law.--A provision of law referred to in subsections 
(a) and (b) is any provision of law that, as determined by the Federal 
Acquisition Regulatory Council, sets forth policies, procedures, 
requirements, or restrictions for the procurement of property or 
services by the Federal Government.''.

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 4022(a), is 
        further amended by inserting before the period at the end of 
        the sentence added by section 4022(a) 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 4022(e), 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 4022(b), 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) Contractor inventory accounting systems: standards.--
        Section 2410b of title 10, United States Code, is amended--
                    (A) by inserting ``(a) Regulations Required.--'' 
                before ``The Secretary of Defense''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(b) Inapplicability to Acquisitions of Commercial Items.--The 
regulations prescribed pursuant to subsection (a) need not apply to a 
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))).''.
            (6) Prohibition on persons convicted of defense-contract 
        related felonies.--Paragraph (4) of section 2408(a) of title 
        10, United States Code, as added by section 4022(f), is 
        amended--
                    (A) by inserting after subparagraph (A) the 
                following:
            ``(B) A contract referred to in such subparagraph that is 
        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))).''; and
                    (B) by inserting ``or (B)'' before the period at 
                the end of subparagraph (C).
    (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 4023(b), 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 4023(a), is further 
        amended by inserting before the period at the end of the 
        sentence added by section 4023(a) 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 4024(b), 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.--Section 5152(a)(1) of 
        the Drug-Free Workplace Act of 1988 (subtitle D of title V of 
        Public Law 100-690; 41 U.S.C. 701(a)(1)), as amended by section 
        4024(e), is further amended by inserting after the matter 
        inserted by such section 4024(e) 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) 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.

    (a) Office of Federal Procurement Policy Act Amendment.--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 
paragraph (1). Such limits shall be incorporated in the Federal 
Acquisition Regulation. The Federal Acquisition Regulation shall 
specify a minimum period for submission of a response to a solicitation 
of offers for a contract for the acquisition of commercial items.''.
    (b) Savings Provision.--The deadlines for submission of offers that 
are in effect in accordance with section 18(a) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416(a)) and section 8(e) of the Small 
Business Act (15 U.S.C. 637(e)) shall continue to apply to contracts 
for the purchase of commercial items until the limits prescribed 
pursuant to paragraph (4) of section 18(a) of the Office of Federal 
Procurement Policy Act (as added by subsection (a)) are incorporated in 
the Federal Acquisition Regulation, as required by such paragraph.

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

    (a) Responsibilities of the Advocate for Competition.--Section 
20(c) of the Office of Federal Procurement Policy 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.''.
    (b) 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) subsections (a) and (d) of section 8 of the Small 
        Business Act (15 U.S.C. 637); 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--MISCELLANEOUS PROVISIONS

SEC. 9001. COMPTROLLER GENERAL REVIEW OF THE PROVISION OF LEGAL ADVICE 
              FOR INSPECTORS GENERAL.

    (a) Review and Report Required.--Not later than March 1, 1995, the 
Comptroller General of the United States shall--
            (1) conduct a review of the independence of the legal 
        services being provided to Inspectors General appointed under 
        the Inspector General Act of 1978; and
            (2) submit to Congress a report on the results of the 
        review.
    (b) Matters Required for Report.--The report shall include the 
following matters:
            (1) With respect to each department or agency of the 
        Federal Government that has an Inspector General appointed in 
        accordance with the Inspector General Act of 1978 whose only or 
        principal source of legal advice is the general counsel or 
        other chief legal officer of the department or agency, an 
        assessment of the extent of the independence of the legal 
        advisors providing advice to the Inspector General.
            (2) A comparison of the findings under the assessment 
        referred to in paragraph (1) with findings on the same matters 
        with respect to each Inspector General whose source of legal 
        advice is legal counsel accountable solely to the Inspector 
        General.

SEC. 9002. COST SAVINGS FOR OFFICIAL TRAVEL.

    (a) The Administrator of the General Services Administration, no 
later than 120 days after enactment of this section, shall issue 
guidelines to ensure that agencies promote, encourage and facilitate 
the use of frequent traveler programs offered by airlines, hotels and 
car rental vendors by Federal employees who engage in official air 
travel, for the purpose of realizing to the maximum extent practicable 
cost savings for official travel.
    (b) Any awards granted under such a frequent traveler program 
accrued through official travel shall be used only for official travel.
    (c) Within one year of enactment of this section, the Administrator 
shall report to the Congress on efforts to promote the use of frequent 
traveler programs by Federal employees.

SEC. 9003. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

    Federal agencies shall resolve or take corrective action on all 
Office of Inspector General audit report findings within a maximum of 
six months after their issuance, or, in the case of audits performed by 
non-Federal auditors, six months after receipt of the report by the 
Federal Government.

SEC. 9004. UNIFORM SUSPENSION AND DEBARMENT.

    (a) Within six months after the date of enactment of this Act, 
regulations shall be issued providing that provisions for the 
debarment, suspension, or other exclusion of a participant in a 
procurement activity under the Federal Acquisition Regulation, or in a 
nonprocurement activity under regulations issued pursuant to Executive 
Order No. 12549, shall have government-wide effect. No agency shall 
allow a party to participate in any procurement or nonprocurement 
activity if any agency has debarred, suspended, or otherwise excluded 
(to the extent specified in the exclusion agreement) that party from 
participation in a procurement or nonprocurement activity.
    (b) The Regulations issued pursuant to subsection (a) shall provide 
that an agency may grant an exception permitting a debarred, suspended, 
or otherwise excluded party to participate in procurement activities of 
that agency to the extent exceptions are authorized under the Federal 
Acquisition Regulation, or to participate in nonprocurement activities 
of that agency to the extent exceptions are authorized under 
regulations issued pursuant to Executive Order No. 12549.
    (c) Definitions.--For the purposes of this part--
            (1) ``Procurement activities'' refers to all acquisition 
        programs and activities of the Federal Government, as defined 
        in the Federal Acquisition Regulation.
            (2) ``Nonprocurement activities'' refers to all programs 
        and activities involving Federal financial and nonfinancial 
        assistance and benefits, as covered by Executive Order No. 
        12549 and the Office of Management and Budget guidelines 
        implementing that order.
            (3) ``Agency'' refers to executive departments and 
        agencies.

              TITLE X--EFFECTIVE DATES AND IMPLEMENTATION

SEC. 10001. EFFECTIVE DATES.

    (a) Effective Date of Act.--Except as otherwise provided in this 
Act, this Act shall take effect on the date of the enactment of this 
Act.
    (b) Effective Date of Amendments.--Except as otherwise provided in 
this Act, the amendments made by this Act shall take effect on the date 
on which final implementing regulations are prescribed in accordance 
with section 10002.

SEC. 10002. IMPLEMENTING REGULATIONS.

    (a) Proposed Changes.--Proposed changes to the Federal Acquisition 
Regulation and such other proposed regulations (or changes to existing 
regulations) as may be necessary to implement this Act shall be 
published in the Federal Register not later than 210 days after the 
date of the enactment of this Act.
    (b) Public Comment.--The proposed regulations described in 
subsection (a) shall be made available for public comment for a period 
of not less than 60 days.
    (c) Final Regulations.--Final regulations shall be published in the 
Federal Register not later than 330 days after the date of enactment of 
this Act.
    (d) Applicability.--(1) The amendments made by this Act shall 
apply, in the manner prescribed in such final regulations, to any 
solicitation that is issued or any unsolicited proposal that is 
received on or after the date described in paragraph (3).
    (2) The amendments made by this Act shall apply, to the extent and 
in the manner prescribed in such final regulations, to any matter 
related to--
            (A) a contract that is in effect on the date described in 
        paragraph (3);
            (B) an offer under consideration on the date described in 
        paragraph (3); or
            (C) any other proceeding or action that is ongoing on the 
        date described in paragraph (3).
    (3) The date referred to in paragraphs (1) and (2) is the date 
specified in such regulations, which--
            (A) shall not be earlier than the end of the 30-day period 
        that begins on the date the regulations required by subsection 
        (c) are published; and
            (B) shall not be later than October 1, 1995.
    (e) Requirement for Clarity.--Officers and employees of the Federal 
Government who prescribe regulations to implement this Act and the 
amendments made by this Act shall make every effort practicable to 
ensure that the regulations are concise and are easily understandable 
by potential offerors as well as by Government officials.
    (f) Savings Provision.--Nothing in this Act shall be construed to 
affect the validity of any action taken or any contract entered into 
prior to the date specified in the regulations pursuant to subsection 
(d)(3) except to the extent and in the manner prescribed in such 
regulations.

SEC. 10003. EVALUATION BY THE COMPTROLLER GENERAL.

    (a) Evaluation Relating to Issuance of Regulations.--Not later than 
December 1, 1995, the Comptroller General shall submit to the 
committees referred to in subsection (c) a report evaluating compliance 
with the requirements in section 10002, relating to the issuance of 
implementing regulations.
    (b) Evaluation of Implementation of Regulations.--Not later than 
December 1, 1996, the Comptroller General shall submit to the 
committees referred to in subsection (c) a report evaluating the 
effectiveness of the regulations implementing this Act in streamlining 
the acquisition system and fulfilling the other purposes of this Act. 
The report shall include the Comptroller General's evaluation of the 
extent to which the departments and agencies of the Federal Government, 
in implementing this Act and the amendments made by this Act, are 
reducing acquisition management layers and associated costs.
    (c) Committees Designated To Receive the Reports.--The Comptroller 
General shall submit the reports required by this section to the 
Committees on Armed Services and on Governmental Affairs of the Senate 
and the Committees on Small Business on Government Operations of the 
House of Representatives.

SEC. 10004. DATA COLLECTION THROUGH THE FEDERAL PROCUREMENT DATA 
              SYSTEM.

    (a) Data Collection Required.--The Federal Procurement Data System 
described in section 6(d)(4)(A) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect from 
contracts in excess of the simplified acquisition threshold data 
pertaining to the following matters:
            (1) Contract awards made pursuant to competitions conducted 
        pursuant to section 2323 of title 10, United States Code, or 
        section 8(c) of the Small Business Act (15 U.S.C. 637(c)).
            (2) Awards to business concerns owned and controlled by 
        women.
            (3) Number of offers received in response to a 
        solicitation.
            (4) Task order contracts.
            (5) Contracts for the acquisition of commercial items.
    (b) Definition.--In this section, the term ``simplified acquisition 
threshold'' has the meaning given such term in section 4 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403).

  TITLE XI--WAIVER OF THE APPLICATION OF THE PREVAILING WAGE-SETTING 
                       REQUIREMENTS TO VOLUNTEERS

SEC. 11001. SHORT TITLE.

    This title may be cited as the ``Community Improvement Volunteer 
Act of 1994''.

SEC. 11002. PURPOSE.

    It is the purpose of this title to promote and provide more 
opportunities for people who wish to volunteer their services in the 
construction, repair or alteration (including painting and decorating) 
of public buildings and public works funded, in whole or in part, with 
Federal financial assistance authorized under certain Federal programs 
that might not otherwise be possible without the use of volunteers, by 
waiving the application of the otherwise applicable prevailing wage-
setting provisions of the Act of March 3, 1931 (commonly known as the 
``Davis-Bacon Act'') (40 U.S.C. 276a et seq.) to such volunteers.

SEC. 11003. WAIVER.

    (a) In General.--The requirement that certain laborers and 
mechanics be paid in accordance with the wage-setting provisions of the 
Act of March 3, 1931 (commonly known as the ``Davis-Bacon Act'') (40 
U.S.C. 276a et seq.) as set forth in any of the Acts or provisions 
described in subsection (d), and the provisions relating to wages, in 
any federally assisted or insured contract or subcontract for 
construction, shall not apply to any individual--
            (1) who volunteers--
                    (A) to perform a service for a public or private 
                entity for civic, charitable, or humanitarian reasons, 
                without promise, expectation, or receipt of 
                compensation for services rendered other than expenses, 
                reasonable benefits, or a nominal fee (as defined in 
                subsection (b)), but solely for the personal purpose or 
                pleasure of the individual; and
                    (B) to provide such services freely and without 
                pressure or coercion, direct or implied, from an 
                employer;
            (2) whose contribution of service is not for the benefit of 
        any contractor otherwise performing or seeking to perform work 
        on the same project; and
            (3) who is not otherwise employed at any time under the 
        federally assisted or insured contract or subcontract involved 
        for construction with respect to the project for which the 
        individual is volunteering.
    (b) Expenses.--Payments of expenses, reasonable benefits, or a 
nominal fee may be provided to volunteers described in subsection (a) 
if the Secretary of Labor determines, after an examination of the total 
amount of payments made (relating to expenses, benefits, or fees) in 
the context of the economic realities of the specific federally 
assisted or insured project, that such payments are appropriate. 
Subject to such a determination--
            (1) a payment for an expense may be received by a volunteer 
        for items such as uniform allowances, protective gear and 
        clothing, reimbursement for approximate out-of-pocket expenses, 
        or for the cost or expense of meals and transportation;
            (2) a reasonable benefit may include the inclusion of a 
        volunteer in a group insurance plan (such as a liability, 
        health, life, disability, or worker's compensation plan) or 
        pension plan, or the awarding of a length of service award; and
            (3) a nominal fee may not be used as a substitute for 
        compensation and may not be tied to productivity.
The decision as to what constitutes a nominal fee for purposes of 
paragraph (3) shall be made on a case-by-case basis and in the context 
of the economic realities of the situation involved.
    (c) Economic Reality.--For purposes of subsection (b), in 
determining whether an expense, benefit, or fee described in such 
subsection may be paid to volunteers in the context of the economic 
realities of the particular situation, the Secretary of Labor shall not 
approve any such expense, benefit, or fee that has the effect of 
undermining labor standards by creating downward pressure on prevailing 
wages in the local construction industry.
    (d) Contracts Exempted.--For purposes of subsection (a), the Acts 
or provisions described in this subsection are the following:
            (1) The Library Services and Construction Act (20 U.S.C. 
        351 et seq.).
            (2) The Indian Self-Determination and Education Assistance 
        Act (25 U.S.C. 450 et seq.).
            (3) Section 329 of the Public Health Service Act (42 U.S.C. 
        254b).
            (4) Section 330 of the Public Health Service Act (42 U.S.C. 
        254c).

SEC. 11004. REPORT.

    Not later than December 31, 1997, the Secretary of Labor shall 
prepare and submit to the appropriate committees of Congress a report 
that--
            (1) identifies and assesses, to the maximum extent 
        practicable--
                    (A) the projects for which volunteers were 
                permitted to work under this title; and
                    (B) the number of volunteers permitted to work 
                because of the compliance of entities with the 
                provisions of this title; and
            (2) contains recommendations with respect to Acts related 
        to the Davis-Bacon Act that could be addressed to permit 
        volunteer work.

            Passed the Senate June 8 (legislative day, June 7), 1994.

            Attest:






                                                             Secretary.

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