II

103D CONGRESS

2D SESSION S. 1982

To modernize and streamline Federal acquisition management and procedures,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 24 (legislative day, FEBRUARY 22), 1994

Mr. ROTH (for himself and Mr. COHEN) introduced the following bill; which

was read twice and referred to the Committee on Governmental Affairs

A BILL

To modernize and streamline Federal acquisition

management and procedures, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Federal Acquisition

5 Management Improvement Act of 1994’’.
2

•S 1982 IS

1 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—ACQUISITION IMPROVEMENT GOALS

Sec. 101. Reduction in Federal Government procurement costs.

Sec. 102. Armed services acquisitions.

Sec. 103. Civilian agency acquisitions.

TITLE II—ACQUISITION MANAGEMENT POLICIES

Subtitle A—Armed Services Acquisitions

Sec. 201. Implementation of defense acquisition workforce amendments.

Sec. 202. Enhanced encouragement of excellence in the defense acquisition

workforce.

Sec. 203. Program management stability.

Subtitle B—Civilian Agency Acquisitions

Sec. 211. Policy regarding training of Federal acquisition workforce.

Sec. 212. Acquisition workforce management system.

Sec. 213. Enhanced encouragement of excellence in the Federal acquisition

workforce.

Sec. 214. Inapplicability to Department of Defense.

TITLE III—ORGANIZATION OF THE ACQUISITION PROCESS

Subtitle A—Armed Services Procurements

Sec. 301. Reorganization of acquisition authority.

Sec. 302. Phase funding and review of defense acquisition programs.

Subtitle B—Civilian Agency Acquisitions

Sec. 311. Customer-driven acquisitions.

Sec. 312. Review of agency organization for acquisitions.

Sec. 313. Acquisition of noncommercial items.

Sec. 314. Inapplicability to Department of Defense.

TITLE IV—CONTRACT FORMATION

Subtitle A—Specifications and Standards

Sec. 401. Preference for commercial items.

Subtitle B—Performance-Based Contracting

Sec. 411. Use of incentive contracts.

Sec. 412. Guidance regarding consideration of past contract performance of

offerors.

TITLE V—PERFORMANCE-BASED CONTRACT

ADMINISTRATION
3

•S 1982 IS

Sec. 501. Contract financing in armed services acquisitions.

Sec. 502. Contract financing in civilian agency acquisitions.

TITLE VI—DAVIS-BACON ACT EXEMPTION

Sec. 601. Contracts not in excess of $500,000.

TITLE VII—MISCELLANEOUS CONFORMING AMENDMENTS

Sec. 701. Modification of the responsibility of the Comptroller of the Department of Defense for defense acquisition budgets.

Sec. 702. The defense acquisition work force.

Sec. 703. Procurement procedures generally.

Sec. 704. Research and development.

Sec. 705. Miscellaneous procurement provisions.

Sec. 706. Major defense acquisition programs.

Sec. 707. Service specific acquisition authority.

Sec. 708. Other laws.

TITLE VIII—EFFECTIVE DATE

Sec. 801. Effective date.

1 TITLE I—ACQUISITION

2 IMPROVEMENT GOALS

3 SEC. 101. REDUCTION IN FEDERAL GOVERNMENT PRO4 CUREMENT COSTS.

5 (a) POLICY.—It is the policy of Congress that, by the

6 end of fiscal year 1999, there should be achieved Federal

7 budget savings in procurement costs of the Federal Gov8 ernment (including the personnel and other overhead costs

9 associated with procurements for the Federal Govern10 ment) in a total amount of at least the $22,500,000,000

11 that is projected for savings from Federal procurement

12 streamlining in the report on the National Performance

13 Review carried out during 1993 under the direction of the

14 Vice President.

15 (b) ANNUAL PROGRESS REPORT.—The Director of

16 the Office of Management and Budget shall transmit to
4

•S 1982 IS

1 Congress each year, at the same time that the President

2 submits the budget to Congress pursuant to section 1105

3 of title 31, United States Code, an assessment of the

4 progress made in implementing the policy set out in sub5 section (a).

6 SEC. 102. ARMED SERVICES ACQUISITIONS.

7 (a) ACQUISITION PERFORMANCE GOALS.—Section

8 2301 of title 10, United States Code, is amended by add9 ing at the end the following new subsection:

10 ‘‘(e)(1) It is the policy of Congress that, on and after

11 January 1, 2000—

12 ‘‘(A) the Department of Defense should achieve,

13 on average, 90 percent of the cost and schedule

14 goals established for the research and development

15 programs and acquisition programs of the Depart16 ment of Defense; and

17 ‘‘(B) the average period necessary for convert18 ing an emerging technology into initial operational

19 capability for the Department of Defense should not

20 exceed 8 years.

21 ‘‘(2) Whenever it is necessary in order to implement

22 the policy set out in paragraph (1), the Secretary of De23 fense should—

24 ‘‘(A) identify and consider for termination re25 search and development programs and acquisition
5

•S 1982 IS

1 programs of the Department of Defense that are not

2 achieving the cost, performance, and schedule goals

3 of the programs taking into consideration—

4 ‘‘(i) the needs of the Department known as

5 of the time of the consideration of such pro6 grams for termination;

7 ‘‘(ii) the state of the technology or tech8 nologies relevant to the programs and to the

9 needs of the Department;

10 ‘‘(iii) the estimated costs and projected

11 schedules necessary for the completion of such

12 programs; and

13 ‘‘(iv) other pertinent information; and

14 ‘‘(B) identify existing and potential research

15 and development programs and acquisition programs

16 that are suitable alternatives for programs consid17 ered for termination pursuant to subparagraph

18 (A).’’.

19 (b) RESPONSIBILITY FOR DEPARTMENTAL OVER20 SIGHT OF ACQUISITION PROGRAM GOALS.—

21 (1) IN GENERAL.—Chapter 131 of title 10,

22 United States Code, is amended by adding at the

23 end the following new section:
6

•S 1982 IS

1 ‘‘§ 2219. Responsibility for departmental oversight of

2 cost, performance, and schedule goals of

3 acquisition programs

4 ‘‘(a) COST GOALS.—The Comptroller of the Depart5 ment of Defense shall evaluate the cost goals proposed for

6 each phase of an acquisition program of the Department

7 of Defense.

8 ‘‘(b) PERFORMANCE AND SCHEDULE GOALS.—The

9 Joint Chiefs of Staff shall approve or define the perform10 ance and schedule goals for acquisition programs of the

11 Department of Defense. The Joint Chiefs of Staff shall

12 approve the performance goals for acquisition programs

13 on the basis of cost, schedule, performance, and risk.

14 ‘‘(c) ANNUAL REPORTING REQUIREMENT.—The Sec15 retary of Defense shall include in the annual report sub16 mitted to Congress pursuant to section 113(c) of this

17 title—

18 ‘‘(1) an assessment of the progress made in im19 plementing the policies set out in section 2301(e)(1)

20 of this title; and

21 ‘‘(2) any actions taken or considered in accord22 ance with section 2301(e)(2) of this title.’’.

23 (2) CLERICAL AMENDMENT.—The table of sec24 tions at the beginning of chapter 131 of title 10,

25 United States Code, is amended by adding at the

26 end the following new item:
7

•S 1982 IS

‘‘2219. Responsibility for departmental oversight of cost, performance, and

schedule goals of acquisition programs.’’.

1 SEC. 103. CIVILIAN AGENCY ACQUISITIONS.

2 (a) ACQUISITION PERFORMANCE GOALS.—

3 (1) IN GENERAL.—It is the policy of Congress

4 that, on and after January 1, 2000, each depart5 ment and agency of the Federal Government should

6 achieve, on average, 90 percent of the cost and

7 schedule goals established for the research and de8 velopment programs and acquisition programs of

9 that department or agency.

10 (2) NONDUPLICATION OF GOAL STATEMENT.—

11 Paragraph (1) does not apply to the Department of

12 Defense. For the statement of the corresponding

13 goal for the Department of Defense see subsection

14 (e)(1)(A) of section 2301 of title 10, United States

15 Code, as added by section 102(a).

16 (b) RESPONSIBILITY FOR AGENCY OVERSIGHT OF

17 ACQUISITION PROGRAM COST GOALS.—The Office of

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

19 is amended by adding at the end the following new section:

20 ‘‘AGENCY OVERSIGHT OF COST GOALS OF ACQUISITION

21 PROGRAMS

22 ‘‘SEC. 29. The chief financial officer of an executive

23 agency shall evaluate the cost goals proposed for each

24 phase of an acquisition program of the agency.’’.
8

•S 1982 IS

1 (c) RESPONSIBILITY FOR AGENCY OVERSIGHT OF

2 ACQUISITION PROGRAM PERFORMANCE AND SCHEDULE

3 GOALS.—Section 303A of the Federal Property and Ad4 ministrative Services Act of 1949 (41 U.S.C. 253a) is

5 amended by adding at the end the following new sub6 section:

7 ‘‘(c) The head of an executive agency shall approve

8 or define the performance and schedule goals for acquisi9 tion programs of that agency. The agency head shall ap10 prove the performance goals for acquisition programs on

11 the basis of cost, schedule, performance, and risk.’’.

12 TITLE II—ACQUISITION

13 MANAGEMENT POLICIES

14 Subtitle A—Armed Services

15 Acquisitions

16 SEC. 201. IMPLEMENTATION OF DEFENSE ACQUISITION

17 WORKFORCE AMENDMENTS.

18 The Congress—

19 (1) urges the Secretary of Defense to expedite

20 the implementation of the provisions of chapter 87

21 of title 10, United States Code, relating to the ac22 quisition workforce of the Department of Defense;

23 and

24 (2) reemphasizes the importance of ensuring

25 that the acquisition workforce is educated and
9

•S 1982 IS

1 trained in accordance with the standards set out in

2 the provisions of such chapter.

3 SEC. 202. ENHANCED ENCOURAGEMENT OF EXCELLENCE

4 IN THE DEFENSE ACQUISITION WORKFORCE.

5 (a) ENHANCED SYSTEM OF INCENTIVES AND AD6 VERSE ACTIONS.—

7 (1) REVIEW AND ACTION REQUIRED.—The Sec8 retary of Defense shall review the incentives and

9 personnel actions available to the Secretary for en10 couraging excellence in the acquisition workforce of

11 the Department of Defense and, to the maximum ex12 tent practicable, provide an enhanced system of in13 centives for the encouragement of excellence in such

14 workforce.

15 (2) REQUIRED CONSIDERATION.—The Sec16 retary shall specifically consider whether action

17 should be taken under section 1736 of title 10, Unit18 ed States Code (as added by subsection (b)), in the

19 case of acquisition program executive officers and

20 acquisition program managers.

21 (3) REGULATIONS.—The Secretary shall pre22 scribe in regulations a system of incentives for en23 couraging professional excellence among the func24 tional analysts in the defense acquisition workforce.
10

•S 1982 IS

1 (b) ENHANCED GRADES OF CERTAIN ACQUISITION

2 MANAGERS.—

3 (1) IN GENERAL.—Subchapter III of chapter

4 87 of title 10, United States Code, is amended—

5 (A) by redesignating sections 1736 and

6 1737 as sections 1737 and 1738, respectively;

7 and

8 (B) by inserting after section 1735 the fol9 lowing new section 1736:

10 ‘‘§ 1736. Grade of certain acquisition managers

11 ‘‘(a) PROGRAM EXECUTIVE OFFICER.—(1)(A) Sub12 ject to subparagraph (B), the position of acquisition pro13 gram executive officer carries the grade of brigadier gen14 eral, rear admiral (lower half), major general, or rear ad15 miral, as the Secretary of Defense determines appropriate.

16 ‘‘(B) The President may designate a position of ac17 quisition program executive officer as a position of impor18 tance and responsibility to carry the grade of lieutenant

19 general or vice admiral under section 601(a) of this title.

20 ‘‘(C) The President or the Secretary of Defense may

21 designate a position of acquisition program executive offi22 cer to carry a grade above brigadier general or rear admi23 ral (lower half) only when the President or Secretary, as

24 the case may be, determines that the member serving in
11

•S 1982 IS

1 that position has performed the duties of the position of

2 an acquisition program executive officer with distinction.

3 ‘‘(2) Notwithstanding any other provision of law

4 (other than a provision of law limiting the number of posi5 tions or personnel in a certain grade), the Secretary of

6 Defense may fix the civilian grade of a position of acquisi7 tion program executive officer at a civilian equivalent of

8 a grade referred to in paragraph (1). The Secretary shall

9 fix the civilian grade for the position of a particular em10 ployee at a grade above the civilian equivalent of brigadier

11 general or rear admiral (lower half) only if the Secretary

12 determines that the employee serving in that position has

13 performed the duties of the position of an acquisition pro14 gram executive officer with distinction.

15 ‘‘(b) ACQUISITION PROGRAM MANAGER.—(1)(A) The

16 position of acquisition program manager carries the grade

17 of colonel, brigadier general, or major general, or, in the

18 case of the Navy, captain, rear admiral (lower half), or

19 rear admiral, as the Secretary of Defense determines ap20 propriate.

21 ‘‘(B) The Secretary of Defense may designate a posi22 tion of acquisition program manager to carry a grade

23 above colonel or (in the case of the Navy) captain only

24 when the Secretary determines that the member serving
12

•S 1982 IS

1 in that position has performed the duties of the position

2 of an acquisition program manager with distinction.

3 ‘‘(2) Notwithstanding any other provision of law

4 (other than a provision of law limiting the number of posi5 tions or personnel in a certain grade), the Secretary of

6 Defense may fix the civilian grade of the position of civil7 ian acquisition program manager at a civilian equivalent

8 of a grade referred to in paragraph (1). The Secretary

9 shall fix the civilian grade for the position of a particular

10 employee at a grade above the civilian equivalent of colonel

11 or (in the case of the Navy) captain only if the Secretary

12 determines that the employee serving in that position has

13 performed the duties of the position of an acquisition pro14 gram executive officer with distinction.’’.

15 (2) CLERICAL AMENDMENT.—The table of sec16 tions at the beginning of such subchapter is amend17 ed by striking out the items relating to sections

18 1736 and 1737 and inserting in lieu thereof the fol19 lowing:

‘‘1736. Grade of certain acquisition managers.

‘‘1737. Applicability.

‘‘1738. Definitions and general provisions.’’.

20 (c) PAY FOR PERFORMANCE IN ACQUISITION POSI21 TIONS.—

22 (1) IN GENERAL.—Subchapter II of chapter 87

23 of title 10, United States Code, is amended—
13

•S 1982 IS

1 (A) by redesignating sections 1725 as

2 1726; and

3 (B) by inserting after section 1724 the fol4 lowing new section 1725:

5 ‘‘§ 1725. Pay for performance

6 ‘‘(a) PAY RATES.—(1) The Secretary of Defense may

7 provide for the pay rate of an employee in an acquisition

8 position within the Department of Defense to be based,

9 to an appropriate extent, on specific criteria that relates

10 the pay rate of such employee to the employee’s contribu11 tion to the achievement of the policy goals set forth in

12 section 2301(e)(1) of this title and performance goals ap13 proved or defined in accordance with section 2219(b) of

14 this title.

15 ‘‘(2) A pay rate established pursuant to paragraph

16 (1) for an employee in a position referred to in that sub17 section may not exceed the lesser of—

18 ‘‘(A) the amount equal to 130 percent of the

19 maximum pay rate prescribed under law (other than

20 paragraph (1)) for the grade or other pay level of

21 that position; or

22 ‘‘(B) the rate of basic pay payable for level V

23 of the Executive Schedule.

24 ‘‘(b) RELATIONSHIP OF PERSONNEL BUDGET TO

25 ACHIEVEMENT OF GOALS.—The Secretary of Defense, in
14

•S 1982 IS

1 approving or formulating the personnel budget of a mili2 tary department or Defense Agency for a fiscal year, shall

3 consider whether increased funding is appropriate on the

4 basis of the achievement by the military department or

5 Defense Agency of the schedule, performance, and cost

6 goals for acquisition programs of the Department of De7 fense referred to in section 2301(e)(1) of this title.’’.

8 (2) CLERICAL AMENDMENT.—The table of sec9 tions at the beginning of such subchapter is amend10 ed by striking out the item relating to section 1725

11 and inserting in lieu thereof the following:

‘‘1725. Pay for performance.

‘‘1726. Office of Personnel Management approval.’’.

12 SEC. 203. PROGRAM MANAGEMENT STABILITY.

13 (a) ASSIGNMENT PERIOD FOR PROGRAM MAN14 AGERS.—Section 1734 of title 10, United States Code, is

15 amended—

16 (1) in subsection (b)—

17 (A) in paragraph (1)—

18 (i) by striking out ‘‘the major mile19 stone’’ in subparagraph (A) and all that

20 follows through the semicolon in such sub21 paragraph and inserting in lieu thereof ‘‘a

22 phase in the acquisition program cycle;’’;

23 and
15

•S 1982 IS

1 (ii) by striking out the second sen2 tence and inserting in lieu thereof the fol3 lowing:

4 ‘‘Except as provided in subsection (c), a person in the po5 sition of program manager or deputy program manager

6 may not be reassigned from such position before comple7 tion of a phase in the acquisition program cycle.’’; and

8 (B) in paragraph (2)—

9 (i) in the first sentence, by striking

10 out ‘‘the first major milestone’’ and all

11 that follows in the first sentence and in12 serting in lieu thereof ‘‘a phase of the ac13 quisition program cycle.’’; and

14 (ii) in the second sentence, by striking

15 out ‘‘Secretary concerned under subsection

16 (d)’’ and inserting in lieu thereof ‘‘Sec17 retary of Defense under subsection (c)’’;

18 and

19 (2) by striking out subsection (c).

20 (b) WAIVER AUTHORITY.—Such section is further

21 amended by striking out subsection (d) and inserting in

22 lieu thereof the following:

23 ‘‘(c) WAIVER OF ASSIGNMENT PERIOD.—(1) With re24 spect to a person assigned to a critical acquisition position,

25 the Secretary of Defense may waive the prohibition on re-
16

•S 1982 IS

1 assignment of that person (in subsection (a)(1) or (b)(1))

2 and the service obligation in an agreement executed by

3 that person (under subsection (a)(2) or (b)(2)), but only

4 in exceptional circumstances (specified in regulations pre5 scribed by the Secretary) in which a waiver is necessary.

6 ‘‘(2) The Director of Acquisition Education, Train7 ing, and Career Development shall maintain a written

8 record of the rationale for each waiver granted under this

9 subsection.’’.

10 (c) CONFORMING AMENDMENTS AND DEFINITION.—

11 Such section is further amended—

12 (1) by redesignating subsection (e) as sub13 section (d); and—

14 (A) in paragraph (1) of such subsection,

15 by striking out ‘‘a program manager, after com16 pletion of a major program milestone, whichever

17 is longer’’ in the first sentence and inserting in

18 lieu thereof ‘‘a program manager or deputy pro19 gram manager, after completion of a phase of

20 the acquisition program cycle’’; and

21 (B) in paragraph (2) of such subsection,

22 by striking out ‘‘of the department concerned’’

23 in the first sentence;

24 (2) by redesignating subsection (f) as sub25 section (e); and
17

•S 1982 IS

1 (3) by striking out subsections (g) and (h) and

2 inserting in lieu thereof the following:

3 ‘‘(f) In this section, the term ‘phase of an acquisition

4 program cycle’ shall have the meaning given such term

5 in the regulations prescribed pursuant to section 2220 of

6 this title.’’.

7 Subtitle B—Civilian Agency

8 Acquisitions

9 SEC. 211. POLICY REGARDING TRAINING OF FEDERAL AC10 QUISITION WORKFORCE.

11 The head of each department or agency of the Fed12 eral Government should ensure that the acquisition

13 workforce of the department or agency is trained to per14 form effectively and efficiently the acquisition functions of

15 the Federal Government.

16 SEC. 212. ACQUISITION WORKFORCE MANAGEMENT SYS17 TEM.

18 (a) REQUIREMENT FOR SYSTEM.—The head of each

19 department or agency in the executive branch shall, on an

20 expedited basis, establish policies and procedures for the

21 effective management (including accession, education,

22 training, and career development) of persons serving in

23 acquisition positions in the department or agency.

24 (b) SIMILARITY TO DEFENSE ACQUISITION

25 WORKFORCE SYSTEM.—To the maximum extent prac-
18

•S 1982 IS

1 ticable, the department or agency head shall replicate

2 within the department or agency the acquisition workforce

3 policies and procedures that are set forth in and imple4 mented under the provisions of chapter 87 of title 10,

5 United States Code, relating to the acquisition workforce

6 of the Department of Defense.

7 (c) AUTHORITY.—The head of a department or agen8 cy referred to in subsection (a) may exercise the same au9 thority with respect to the acquisition workforce of that

10 department or agency as the Secretary of Defense or any

11 other official within the Department of Defense may exer12 cise with respect to the defense acquisition workforce

13 under the provisions of chapter 87 of title 10, United

14 States Code.

15 (d) NONDUPLICATION OF REQUIREMENTS AND AU16 THORITY.—This section does not apply to the Department

17 of Defense.

18 SEC. 213. ENHANCED ENCOURAGEMENT OF EXCELLENCE

19 IN THE FEDERAL ACQUISITION WORKFORCE.

20 (a) ENHANCED SYSTEM OF INCENTIVES AND AD21 VERSE ACTIONS.—The head of each department or agency

22 in the executive branch shall review the incentives and per23 sonnel actions available to such official for encouraging

24 excellence in the acquisition workforce of that department

25 or agency and, to the maximum extent practicable, provide
19

•S 1982 IS

1 an enhanced system of incentives for the encouragement

2 of excellence in such workforce. The enhanced system

3 shall—

4 (1) in accordance with applicable law, relate

5 pay to performance; and

6 (2) provide for consideration of the extent to

7 which the performance of personnel in such

8 workforce contributes to the achievement of cost

9 goals, schedule goals, and performance goals estab10 lished for acquisition programs of the department or

11 agency.

12 (b) INCREASED GRADES FOR CERTAIN ACQUISITION

13 MANAGERS.—

14 (1) CONSIDERATION REQUIRED.—The head of

15 each department or agency in the executive branch

16 shall specifically consider whether the grade of the

17 position of any acquisition program manager should

18 be increased.

19 (2) APPLICABLE CRITERIA AND LIMITS.—In

20 carrying out paragraph (1), the department or agen21 cy head shall apply the same criteria and limits as

22 apply to civilian personnel of the defense acquisition

23 workforce under section 1736 of title 10, United

24 States Code (as added by section 202(b)).
20

•S 1982 IS

1 (c) INCENTIVES FOR TECHNICAL SPECIALISTS.—The

2 head of each department or agency in the executive branch

3 shall prescribe in regulations a system of incentives for

4 encouraging professional excellence among the technical

5 specialists in that department or agency who support ac6 quisitions of the department or agency.

7 SEC. 214. INAPPLICABILITY TO DEPARTMENT OF DEFENSE.

8 This subtitle does not apply to the Department of De9 fense.

10 TITLE III—ORGANIZATION OF

11 THE ACQUISITION PROCESS

12 Subtitle A—Armed Services

13 Procurements

14 SEC. 301. REORGANIZATION OF ACQUISITION AUTHORITY.

15 (a) UNDER SECRETARY OF DEFENSE FOR ACQUISI16 TION.—Section 133(b) of title 10, United States Code, is

17 amended—

18 (1) by redesignating paragraphs (3) and (4) as

19 paragraphs (4) and (5), respectively; and

20 (2) by striking out paragraphs (1) and (2) and

21 inserting in lieu thereof the following:

22 ‘‘(1) prescribing policies for research, develop23 ment, and acquisition activities of the Department of

24 Defense;
21

•S 1982 IS

1 ‘‘(2) planning, programming, and overseeing

2 the research, development, and acquisition activities

3 of the Department of Defense;

4 ‘‘(3) assisting in the preparation and integra5 tion of budgets for the research, development, and

6 acquisition activities of the Department of Defense,

7 including assisting in the planning, programming,

8 and budgeting system with respect to such activi9 ties;’’.

10 (b) DEFENSE RESEARCH, DEVELOPMENT, AND AC11 QUISITION AGENCY.—

12 (1) ESTABLISHMENT.—Part I of subtitle A of

13 title 10, United States Code, is amended by insert14 ing after chapter 9 the following new chapter:

15 ‘‘CHAPTER 10—DEFENSE RESEARCH, DE16 VELOPMENT, AND ACQUISITION AGEN17 CY

‘‘Sec.

‘‘231. Establishment.

‘‘232. Use of agency for all research, development, and acquisition activities.

‘‘233. Duties.

‘‘234. Program executive officers.

‘‘235. Program managers.

‘‘236. Functional analytical capability.

18 ‘‘§ 231. Establishment

19 ‘‘(a) AGENCY.—There is established a Defense Re20 search, Development, and Acquisition Agency in the De21 partment of Defense.
22

•S 1982 IS

1 ‘‘(b) DIRECTOR.—(1) The head of the agency is the

2 Director of Defense Research, Development, and Acquisi3 tion who shall be appointed by the Under Secretary of De4 fense for Acquisition from among persons who are career

5 professional employees in the acquisition workforce of any

6 Federal agency.

7 ‘‘(2) A member of the armed forces, while serving as

8 the Director, holds the grade of general or, in the case

9 of an officer of the Navy, admiral. A civilian, while serving

10 as the Director, holds an equivalent civilian grade.

11 ‘‘(c) CHIEF OF ENGINEERING AND ANALYSIS.—(1)

12 In the Defense Research, Development, and Acquisition

13 Agency there is a Chief of Engineering and Analysis who

14 shall be appointed by the Director from among the career

15 professional employees in the acquisition workforce of the

16 Department of Defense.

17 ‘‘(2) The Director shall evaluate the performance of

18 the Chief of Engineering and Analysis. The Director may

19 not delegate the performance of the evaluation responsibil20 ity.

21 ‘‘(3) The Chief of Engineering and Analysis shall be

22 the senior technical adviser for the Defense Research, De23 velopment, and Acquisition Agency.
23

•S 1982 IS

1 ‘‘§ 232. Use of agency for all research, development,

2 and acquisition activities

3 ‘‘Subject to sections 3013(h), 5013(h), 8013(h) of

4 this title, the Director shall conduct the research, develop5 ment, and acquisition activities of the Department of De6 fense, including the activities of the research, development,

7 and engineering centers of the Department of Defense.

8 ‘‘§ 233. Duties

9 ‘‘The responsibilities of the Under Secretary of De10 fense for Acquisition that are to be performed by the De11 fense Research, Development, and Acquisition Agency in12 clude the following:

13 ‘‘(1) Planning, programming, and carrying out

14 the research, development, and acquisition activities

15 of the Department of Defense.

16 ‘‘(2) Advising the Secretary of Defense and the

17 Secretaries of the military departments regarding

18 the preparation and integration of the budgets for

19 the research, development, and acquisition activities

20 of the Department of Defense.

21 ‘‘(3) Identifying and informing operational com22 manders regarding alternative technology solutions

23 to fulfill emerging requirements.

24 ‘‘(4) Ensuring that the acquisition plan for

25 each acquisition program realistically reflects the

26 budget and related decisions made for that program.
24

•S 1982 IS

1 ‘‘(5) Conducting research on management tech2 niques as well as on individual systems.

3 ‘‘§ 234. Program executive officers

4 ‘‘(a) SELECTION AND EVALUATION.—The program

5 executive officers of the Defense Research, Development,

6 and Acquisition Agency shall be selected and evaluated by

7 the Director.

8 ‘‘(b) DUTIES.—The duties of a program executive of9 ficer are as follows:

10 ‘‘(1) To manage acquisition programs assigned

11 to the program executive officer.

12 ‘‘(2) To manage related technical support re13 sources.

14 ‘‘(3) To establish and conduct integrated deci15 sion team meetings.

16 ‘‘(4) To provide technological advice (including

17 advice regarding costs, schedule, and performance

18 data relating to alternative technological approaches

19 for fulfilling emerging requirements) to users of pro20 gram products and to the officials within the De21 partment of Defense who plan, program, and budget

22 for the acquisition programs assigned to the pro23 gram executive officer.

24 ‘‘(c) ORGANIZATION OF PERSONNEL.—The program

25 executive officers shall be organized on the basis of unique
25

•S 1982 IS

1 mission areas or, in the case of programs for systems spe2 cifically relating to certain classes of targets, on the basis

3 of target classes. No program executive officer may be or4 ganized with other program executive officers on both

5 bases. The Secretary of Defense shall identify the mission

6 areas or target classes on the basis of which program exec7 utive officers may be organized.

8 ‘‘(d) ACQUISITION LIFE-CYCLE MANAGEMENT.—The

9 responsibilities of a program executive officer for a weapon

10 acquisition program shall cover the entire life cycle of the

11 program.

12 ‘‘(e) USER AND OPERATOR INTERACTION.—(1) The

13 Chairman of the Joint Chiefs of Staff, in consultation with

14 the Under Secretary of Defense for Acquisition, shall pre15 scribe policies and procedures for the interaction of the

16 commanders of the unified and specified combatant com17 mands with program executive officers regarding the initi18 ation and conduct of weapon acquisition programs. The

19 policies and procedures shall include provisions for ena20 bling such commands to perform operational and accept21 ance testing of weapons acquired pursuant to such pro22 grams.

23 ‘‘(2) The Comptroller of the Department of Defense,

24 in consultation with the Under Secretary of Defense for

25 Acquisition and the Secretaries of the military depart-
26

•S 1982 IS

1 ments, shall prescribe policies and procedures for the

2 interaction between the commanders of the unified and

3 specified combatant commands and the program executive

4 officers regarding funding for weapon acquisition pro5 grams.

6 ‘‘§ 235. Program managers

7 ‘‘(a) SELECTION AND EVALUATION.—Each program

8 manager of the Defense Research, Development, and Ac9 quisition Agency shall be selected and evaluated by the

10 Director and a program executive officer and shall report

11 directly to the program executive officer having primary

12 responsibility for the system being acquired under the pro13 gram.

14 ‘‘(b) DUTIES.—A program manager is responsible for

15 the routine management of a research, development, and

16 acquisition program, including the obtaining of necessary

17 logistical support and support services for that program.

18 ‘‘(c) RELATIONSHIP TO PROGRAM EXECUTIVE OFFI19 CERS.—The management functions of a program manager

20 should not duplicate the management functions of a pro21 gram executive officer.

22 ‘‘§ 236. Functional analytical capability

23 ‘‘(a) RESPONSIBILITY OF CHIEF OF ENGINEERING

24 AND ANALYSIS.—The Chief of Engineering and Analysis

25 shall be responsible for ensuring that each of the func-
27

•S 1982 IS

1 tional analytical capabilities provided to the Director, ac2 quisition program executive officers, and acquisition pro3 gram managers in connection with acquisition programs

4 of the Department of Defense is the most advanced capa5 bility of its type.

6 ‘‘(b) FUNCTIONAL ANALYTICAL CAPABILITIES.—The

7 functional analytical capabilities referred to in subsection

8 (a) are as follows:

9 ‘‘(1) Cost and affordability analysis.

10 ‘‘(2) Logistics and support analysis.

11 ‘‘(3) Reliability and maintainability analysis.

12 ‘‘(4) Producibility analysis.

13 ‘‘(5) Environmental analysis.

14 ‘‘(6) Configuration management.

15 ‘‘(7) Warfighting and battlefield performance

16 and utility analysis.

17 ‘‘(8) System engineering.

18 ‘‘(9) Any other analytical capability that may

19 be necessary for ensuring the timeliness, perform20 ance, and affordability of acquisition programs.’’.

21 (2) CLERICAL AMENDMENT.—The tables of

22 chapters at the beginning of subtitle A of title 10,

23 United States Code, and at the beginning of part I

24 of such subtitle, are amended by inserting after the

25 item relating to chapter 9 the following new item:

‘‘10. Defense Research, Development, and Acquisition Agency ............... 231’’.
28

•S 1982 IS

1 (c) LIMITATION OF PROCUREMENT AUTHORITY OF

2 MILITARY DEPARTMENTS.—

3 (1) ARMY.—Section 3013 of title 10, United

4 States Code, is amended—

5 (A) in subsection (b)—

6 (i) by striking out ‘‘and subject to the

7 provisions of chapter 6’’ and inserting in

8 lieu thereof ‘‘, subject to the provisions of

9 chapter 6, and subject to subsection (h),’’;

10 and

11 (ii) in paragraph (4), by striking out

12 ‘‘(including research and development)’’;

13 and

14 (B) by adding at the end the following new

15 subsection:

16 ‘‘(h)(1) The Secretary of the Army shall be respon17 sible for procurements of property and services, and may

18 exercise authority to conduct such procurements, only to

19 the extent that the Secretary of Defense determines nec20 essary for the sustainment of operations of the Army. The

21 Secretary of Defense shall prescribe in regulations the ex22 tent of the responsibility and authority of the Secretary

23 of the Army for procurements of property and services.

24 ‘‘(2) In conducting a procurement in accordance with

25 paragraph (1), the Secretary of the Army shall be subject
29

•S 1982 IS

1 to the same laws as are applicable to acquisitions con2 ducted by the Secretary of Defense.’’.

3 (2) NAVY.—Section 5013 of title 10, United

4 States Code, is amended—

5 (A) in subsection (b)—

6 (i) by striking out ‘‘and subject to the

7 provisions of chapter 6’’ and inserting in

8 lieu thereof ‘‘, subject to the provisions of

9 chapter 6, and subject to subsection (h),’’;

10 and

11 (ii) in paragraph (4), by striking out

12 ‘‘(including research and development)’’;

13 and

14 (B) by adding at the end the following new

15 subsection:

16 ‘‘(h)(1) The Secretary of the Navy shall be respon17 sible for procurements of property and services, and may

18 exercise authority to conduct such procurements, only to

19 the extent that the Secretary of Defense determines nec20 essary for the sustainment of operations of the Navy. The

21 Secretary of Defense shall prescribe in regulations the ex22 tent of the responsibility and authority of the Secretary

23 of the Navy for procurements of property and services.

24 ‘‘(2) In conducting a procurement in accordance with

25 paragraph (1), the Secretary of the Navy shall be subject
30

•S 1982 IS

1 to the same laws as are applicable to acquisitions con2 ducted by the Secretary of Defense.’’.

3 (3) AIR FORCE.—Section 8013 of title 10, Unit4 ed States Code, is amended—

5 (A) in subsection (b)—

6 (i) by striking out ‘‘and subject to the

7 provisions of chapter 6’’ and inserting in

8 lieu thereof ‘‘, subject to the provisions of

9 chapter 6, and subject to subsection (h),’’;

10 and

11 (ii) in paragraph (4), by striking out

12 ‘‘(including research and development)’’;

13 and

14 (B) by adding at the end the following new

15 subsection:

16 ‘‘(h)(1) The Secretary of the Air Force shall be re17 sponsible for procurements of property and services, and

18 may exercise authority to conduct such procurements, only

19 to the extent that the Secretary of Defense determines

20 necessary for the sustainment of operations of the Air

21 Force. The Secretary of Defense shall prescribe in regula22 tions the extent of the responsibility and authority of the

23 Secretary of the Air Force for procurements of property

24 and services.
31

•S 1982 IS

1 ‘‘(2) In conducting a procurement in accordance with

2 paragraph (1), the Secretary of the Air Force shall be sub3 ject to the same laws as are applicable to acquisitions con4 ducted by the Secretary of Defense.’’.

5 (4) Section 2302(1) of title 10, United States Code,

6 is amended by striking out ‘‘the Secretary of the Army,

7 the Secretary of the Navy, the Secretary of the Air

8 Force,’’.

9 (d) TRANSFER OF FUNCTIONS.—

10 (1) MILITARY DEPARTMENTS.—Except as pro11 vided in paragraph (3), all research, development,

12 and acquisition functions of the Secretaries of the

13 military departments are transferred to the Sec14 retary of Defense.

15 (2) PROCUREMENT AGENCIES, COMMANDS, AND

16 OFFICES.—Except as provided in paragraph (3),

17 there is transferred to the Defense Research, Devel18 opment, and Acquisition Agency referred to in sec19 tion 231(a) of title 10, United States Code (as

20 added by subsection (b)), all functions of the follow21 ing organizations:

22 (A) The Defense Logistics Agency.

23 (B) The Advanced Research Projects

24 Agency.
32

•S 1982 IS

1 (C) The following procurement commands

2 of the Army:

3 (i) The Army Materiel Command.

4 (ii) The Army Information Systems

5 Command.

6 (iii) The Army Strategic Defense

7 Command.

8 (D) The following procurement commands

9 of the Navy and Marine Corps:

10 (i) The Navy weapons systems com11 mands.

12 (ii) The Navy Strategic Systems Pro13 gram Office.

14 (iii) The Marine Corps Research, De15 velopment and Acquisition Command.

16 (E) The Air Force Materiel Command.

17 (F) Any successor organization to any

18 agency, command, or office named in subpara19 graphs (A) through (E).

20 (G) Each agency or command within the

21 Department of Defense not referred to in sub22 paragraphs (A) through (F) that, on the day

23 before the effective date of this section, has as

24 a primary mission or function the performance
33

•S 1982 IS

1 of a research, development, or acquisition func2 tion of the Department of Defense.

3 (3) EXCEPTIONS TO TRANSFER REQUIRE4 MENT.—

5 (A) IN GENERAL.—The following functions

6 of the Secretaries of the military departments

7 are not transferred to the Secretary of Defense:

8 (i) Functions that relate to planning,

9 programming, and budgeting.

10 (ii) Functions to be performed by the

11 Secretary of a military department pursu12 ant to section 3013(h), 5013(h), or

13 8013(h) of title 10, United States Code, as

14 added by subsection (c).

15 (B) DISCRETIONARY EXCEPTION.—To the

16 extent prescribed by the Secretary of Defense,

17 functions referred to in subparagraph (A)(ii)

18 that are performed by an organization referred

19 to in paragraph (2) need not be transferred in

20 accordance with that paragraph.

21 (4) TERMINATION OF ORGANIZATION.—The

22 Secretary of Defense shall terminate each organiza23 tion from which all of its functions are transferred

24 in accordance with this subsection.

25 (e) SAVINGS PROVISIONS.—
34

•S 1982 IS

1 (1) REGULATIONS, INSTRUMENTS, RIGHTS, AND

2 PRIVILEGES.—All rules, regulations, contracts, or3 ders, determinations, permits, certificates, licenses,

4 grants, and privileges—

5 (A) which have been issued, made, grant6 ed, or allowed to become effective by the Sec7 retary or other officer or employee of a military

8 department, the head of a Defense Agency of

9 the Department of Defense, or by a court of

10 competent jurisdiction, in connection with any

11 research, development, or acquisition activity of

12 a military department or Defense Agency, and

13 (B) which are in effect on the effective

14 date of this section,

15 shall continue in effect according to their terms until

16 modified, terminated, superseded, set aside, or re17 voked in accordance with law by the Secretary of

18 Defense, the Under Secretary of Defense for Acqui19 sition, or another authorized official, by a court of

20 competent jurisdiction, or by operation of law.

21 (2) PROCEEDINGS.—

22 (A) PROCEEDINGS NOT AFFECTED.—The

23 provisions of this section shall not affect any

24 proceeding, including any proceeding involving

25 a claim or application, in connection with any
35

•S 1982 IS

1 acquisition activity of a military department or

2 a Defense Agency of the Department of De3 fense that is pending before that military de4 partment or Defense Agency on the effective

5 date of this section.

6 (B) ORDERS.—Orders may be issued in

7 any such proceeding, appeals may be taken

8 therefrom, and payments may be made pursu9 ant to such orders, as if this section had not

10 been enacted. An order issued in any such pro11 ceeding shall continue in effect until modified,

12 terminated, superseded, or revoked by the Sec13 retary of Defense or the Under Secretary of

14 Defense for Acquisition, by a court of com15 petent jurisdiction, or by operation of law.

16 (C) RULE OF CONSTRUCTION.—Nothing in

17 this paragraph prohibits the discontinuance or

18 modification of any such proceeding under the

19 same terms and conditions and to the same ex20 tent that such proceeding could have been dis21 continued or modified if this section had not

22 been enacted.

23 (3) REGULATIONS.—The Secretary of Defense

24 may prescribe regulations providing for the orderly

25 transfer of proceedings continued under paragraph
36

•S 1982 IS

1 (2) to the Secretary of Defense or to the Under Sec2 retary of Defense for Acquisition.

3 SEC. 302. PHASE FUNDING AND REVIEW OF DEFENSE AC4 QUISITION PROGRAMS.

5 (a) IN GENERAL.—Chapter 131 of title 10, United

6 States Code, as amended by section 102(b), is further

7 amended by adding at the end the following new sections:

8 ‘‘§ 2220. Results oriented acquisition program cycle

9 ‘‘The Secretary of Defense shall define in regulations

10 a simplified acquisition program cycle that is results-ori11 ented and consists of the following phases:

12 ‘‘(1) The integrated decision team meeting

13 which—

14 ‘‘(A) may be requested by a potential user

15 of the system or component to be acquired, the

16 head of a laboratory, or a program office on

17 such bases as the emergence of a new military

18 requirement, cost savings opportunity, or new

19 technology opportunity;

20 ‘‘(B) shall be conducted by a program ex21 ecutive officer; and

22 ‘‘(C) shall usually be completed within 1 to

23 3 months.

24 ‘‘(2) The prototype development and testing

25 phase which—
37

•S 1982 IS

1 ‘‘(A) shall include operational tests and

2 concerns relating to manufacturing operations

3 and life cycle support;

4 ‘‘(B) shall usually be completed within 6 to

5 36 months; and

6 ‘‘(C) shall produce sufficient numbers of

7 prototypes to assess operational utility.

8 ‘‘(3) Product integration, development, and

9 testing which—

10 ‘‘(A) includes full-scale development, oper11 ational testing, and integration of components;

12 and

13 ‘‘(B) shall usually be completed within 1 to

14 5 years.

15 ‘‘(4) Production, integration into existing sys16 tems, or production and integration into existing

17 systems.

18 ‘‘§ 2221. Funding for results oriented acquisition pro19 gram cycle

20 ‘‘(a) PROGRAM PHASE DETAILS TO BE SUBMITTED

21 TO CONGRESS.—Before initial funding is made available

22 for a phase of the acquisition program cycle of an acquisi23 tion program which requires congressional authorization

24 of appropriations, the Secretary of Defense shall submit

25 to Congress information about the objectives and plans for
38

•S 1982 IS

1 the conduct of that phase and the funding requirements

2 for the entire phase. The Secretary shall include in such

3 information objective, quantifiable criteria for assessing

4 the extent to which the stated objectives and goals are

5 achieved.

6 ‘‘(b) FULL PHASE FUNDING.—(1) In authorizing ap7 propriations for an acquisition program that requires con8 gressional authorization, Congress shall provide in an Act

9 authorizing appropriations for the Department of Defense

10 an authorization of appropriations for a phase of the ac11 quisition program in a single amount that is sufficient for

12 carrying out that phase. Such an authorization of appro13 priations shall be stated in the Act as a specific item.

14 ‘‘(2) In each Act making appropriations for the De15 partment of Defense Congress shall specify the phase of

16 each such acquisition program of the department for

17 which an appropriation is made and the amount of the

18 appropriation for the phase of that program.

19 ‘‘§ 2222. Major program decision

20 ‘‘(a) SINGLE MAJOR DECISION POINT.—The acquisi21 tion program approval process within the Department of

22 Defense shall have one major decision point which shall

23 occur for an acquisition program before that program pro24 ceeds into product integration and development.
39

•S 1982 IS

1 ‘‘(b) DETERMINATIONS AT DECISION POINT.—At the

2 major decision point for an acquisition program, the

3 Under Secretary of Defense for Acquisition in consultation

4 with the Vice Chairman Joint Chief of Staff shall—

5 ‘‘(1) review the program;

6 ‘‘(2) determine whether the program should

7 continue to be carried out beyond product integra8 tion and development; and

9 ‘‘(3) decide whether—

10 ‘‘(A) to commit to further development;

11 ‘‘(B) to require further prototyping; or

12 ‘‘(C) to terminate the program.

13 ‘‘(c) CONSIDERATIONS.—In the review of an acquisi14 tion program, the Under Secretary shall consider the po15 tential benefits, affordability, needs, and risks of the pro16 gram.’’.

17 (b) CLERICAL AMENDMENT.—The table of sections

18 at the beginning of chapter 131 of title 10, United States

19 Code, as amended by section 102(b), is further amended

20 by adding at the end the following new items:

‘‘2220. Results oriented acquisition program cycle.

‘‘2221. Funding for results oriented acquisition program cycle.

‘‘2222. Major program decision.’’.

21 Subtitle B—Civilian Agency

22 Acquisitions

23 SEC. 311. CUSTOMER-DRIVEN ACQUISITIONS.

24 It is the policy of Congress that—
40

•S 1982 IS

1 (1) the purpose for initiating, planning, and

2 executing acquisitions of property or services by the

3 Federal Government be to satisfy the needs of the

4 potential users of such property or services; and

5 (2) potential users of the property or services

6 be involved to a significant extent in the initiation,

7 planning, and execution of the acquisitions of such

8 property or services by the Federal Government.

9 SEC. 312. REVIEW OF AGENCY ORGANIZATION FOR ACQUI10 SITIONS.

11 (a) INSPECTOR GENERAL REVIEW OF MANAGEMENT

12 STRUCTURE.—Not later than 18 months after the date

13 of the enactment of this Act, the Inspector General of each

14 department or agency of the executive branch shall—

15 (1) review the acquisition process in the depart16 ment or agency in order to identify each, if any,

17 management organization or position involved in the

18 process that does not contribute to—

19 (A) the efficiency of the acquisition proc20 ess; or

21 (B) the quality and cost-effectiveness of

22 items acquired; and

23 (2) submit to Congress a report containing—

24 (A) the findings of the Inspector General

25 that result from the review; and
41

•S 1982 IS

1 (B) any recommendations for reorganizing

2 the acquisition management structure of the de3 partment or agency to ensure that each organi4 zation and position involved in the management

5 of acquisitions is valuable to the acquisition

6 process because of contributions to the process

7 as described in paragraph (1).

8 (b) AGENCIES WITHOUT INSPECTORS GENERAL.—In

9 the case of a department or agency that does not have

10 an Inspector General, the head of the department or agen11 cy shall carry out the review, and submit the report, re12 quired by subsection (a)(2).

13 SEC. 313. ACQUISITION OF NONCOMMERCIAL ITEMS.

14 (a) RESULTS-ORIENTED PROCESS REQUIRED.—The

15 head of each department or agency of the executive branch

16 shall develop and implement a results-oriented acquisition

17 process for acquisitions of property and services by the

18 department or agency. The process shall include the iden19 tification of quantitative measures and standards for de20 termining the extent to which an acquisition of non21 commercial items by the department or agency satisfies

22 the needs for which the items are being acquired.

23 (b) DEFINITIONS.—In this section:
42

•S 1982 IS

1 (1) NONCOMMERCIAL ITEM.—The term ‘‘non2 commercial item’’ means an item that is not a com3 mercial item.

4 (2) COMMERCIAL ITEM.—The term ‘‘commer5 cial item’’ means—

6 (A) property, other than real property,

7 that is of a type regularly used by the general

8 public or by nongovernmental entities in the

9 course of normal business operations for pur10 poses other than governmental purposes and—

11 (i) has been sold or licensed to the

12 general public;

13 (ii) has not been sold or licensed to

14 the general public but has been offered for

15 sale or license to the general public; or

16 (iii) is not yet available in the com17 mercial marketplace but will be made

18 available for commercial delivery within a

19 reasonable period;

20 (B) any item that, but for minor modifica21 tions made to meet Federal Government re22 quirements or modifications of a type customar23 ily available in the commercial marketplace,

24 would satisfy the criteria in subparagraph (A);
43

•S 1982 IS

1 (C) any combination of items meeting the

2 requirements of subparagraph (A) or (B) that

3 are of a type customarily combined and sold in

4 combination to the general public; and

5 (D) installation services, maintenance serv6 ices, repair services, training services, and other

7 services if such services are procured for sup8 port of an item referred to in subparagraph

9 (A), (B), or (C) and if the source of such serv10 ices—

11 (i) offers such services to the general

12 public and the Federal Government con13 temporaneously and under similar terms

14 and conditions; and

15 (ii) offers to use the same work force

16 for providing the Federal Government with

17 such services as the source uses for provid18 ing such services to the general public.

19 SEC. 314. INAPPLICABILITY TO DEPARTMENT OF DEFENSE.

20 This subtitle does not apply to the Department of De21 fense.
44

•S 1982 IS

1 TITLE IV—CONTRACT

2 FORMATION

3 Subtitle A—Specifications and

4 Standards

5 SEC. 401. PREFERENCE FOR COMMERCIAL ITEMS.

6 (a) ARMED SERVICES ACQUISITIONS.—Section

7 2305(a)(1)(C) of title 10, United States Code, is amended

8 in the second sentence by striking out ‘‘Subject to such

9 needs, specifications may’’ and inserting in lieu thereof the

10 following: ‘‘Normally, the specifications shall be the speci11 fications of commercial items. When such items cannot

12 meet bona fide needs of the Department of Defense, speci13 fications shall’’.

14 (b) CIVILIAN AGENCY ACQUISITIONS.—Section

15 303A(a)(3) of the Federal Property and Administrative

16 Services Act of 1949 (41 U.S.C. 253a(a)(3)) is amended

17 in the second sentence by striking out ‘‘Subject to such

18 needs, specifications may’’ and inserting in lieu thereof the

19 following: ‘‘Normally, the specifications shall be the speci20 fications of commercial items. When such items cannot

21 meet bona fide needs of the executive agency, specifica22 tions shall’’.
45

•S 1982 IS

1 Subtitle B—Performance-Based

2 Contracting

3 SEC. 411. USE OF INCENTIVE CONTRACTS.

4 (a) ARMED SERVICES ACQUISITIONS.—Subsection

5 (c) of section 2306 of title 10, United States Code, is

6 amended to read as follows:

7 ‘‘(c) The program executive officer of an acquisition

8 program may determine the type of contract to be used

9 when entering into a contract under the program. The

10 program executive officer shall use an incentive type con11 tract unless the program executive officer determines that

12 such a contract would inhibit achievement of acquisition

13 performance goals.’’.

14 (b) CIVILIAN AGENCY ACQUISITIONS.—Section

15 304(b) of the Federal Property and Administrative Serv16 ices Act of 1949 (41 U.S.C. 254(b)) is amended by strik17 ing out the second sentence and inserting in lieu thereof

18 the following: ‘‘The program manager of an acquisition

19 program may determine the type of contract to be used

20 when entering into a contract under the program. The

21 program manager shall use an incentive type contract un22 less the program manager determines that such a contract

23 would inhibit achievement of acquisition performance

24 goals.’’.
46

•S 1982 IS

1 SEC. 412. GUIDANCE REGARDING CONSIDERATION OF PAST

2 CONTRACT PERFORMANCE OF OFFERORS.

3 Section 6 of the Office of Federal Procurement Policy

4 (41 U.S.C. 405) is amended by adding at the end the fol5 lowing:

6 ‘‘(j)(1) Congress makes the following findings:

7 ‘‘(A) Past contract performance of an offeror is

8 one of the relevant factors that contracting officials

9 of executive agencies should consider in entering into

10 contracts.

11 ‘‘(B) It is appropriate for a contracting official

12 to consider past contract performance of an offeror

13 as an indicator of the likelihood that the offeror will

14 successfully perform a contract to be entered into by

15 that official.

16 ‘‘(2) The Administrator shall prescribe for executive

17 agencies guidance regarding consideration of the past con18 tract performance of offerors in awarding contracts. The

19 guidance shall include—

20 ‘‘(A) standards for evaluating past performance

21 that facilitate consistent and fair evaluation by all

22 executive agencies;

23 ‘‘(B) policies for the collection and maintenance

24 of information on past contract performance that, to

25 the maximum extent practicable, facilitate auto26 mated collection, maintenance, and dissemination of
47

•S 1982 IS

1 information and provide for ease of collection, main2 tenance, and dissemination of information by other

3 methods, as necessary; and

4 ‘‘(C) policies for ensuring that offerors are af5 forded an opportunity to submit information on past

6 contract performance and that information submit7 ted by offerors is considered.

8 ‘‘(3) The Administrator shall prescribe for all execu9 tive agencies the policy regarding the period for which in10 formation on past performance of offerors may be main11 tained and considered.

12 ‘‘(4) In the case of an offeror regarding whom there

13 is no information on past contract performance or regard14 ing whom information on past contract performance is not

15 available, the offeror may not be evaluated favorably or

16 unfavorably on the factor of past contract performance.

17 ‘‘(5) In evaluating past contract performance of an

18 offeror under the guidance prescribed pursuant to para19 graph (1), the head of an executive agency shall consider

20 the performance of the offeror with respect to cost, sched21 ule, and compliance with technical or functional specifica22 tions.’’.
48

•S 1982 IS

1 TITLE V—PERFORMANCE-BASED

2 CONTRACT ADMINISTRATION

3 SEC. 501. CONTRACT FINANCING IN ARMED SERVICES AC4 QUISITIONS.

5 (a) REORGANIZATION OF PRINCIPAL AUTHORITY

6 PROVISION.—Section 2307 of title 10, United States

7 Code, is amended—

8 (1) by striking out the section heading and in9 serting in lieu thereof the following:

10 ‘‘§ 2307. Contract financing’’;

11 (2) by striking out ‘‘(a) The head of an agency’’

12 and inserting in lieu thereof ‘‘(b) PAYMENT AU13 THORITY.—The head of an agency’’;

14 (3) by striking out ‘‘(b) Payments’’ and insert15 ing in lieu thereof ‘‘(d) PAYMENT AMOUNT.—Pay16 ments’’;

17 (4) by striking out ‘‘(c) Advance payments’’ and

18 inserting in lieu thereof ‘‘(e) SECURITY FOR AD19 VANCE PAYMENTS.—Advance payments’’;

20 (5) by striking out ‘‘(d)(1) The Secretary of

21 Defense’’ and inserting in lieu thereof ‘‘(f) CONDI22 TIONS FOR PROGRESS PAYMENTS.—(1) The Sec23 retary of Defense’’; and
49

•S 1982 IS

1 (6) by striking out ‘‘(e)(1) In any case’’ and in2 serting in lieu thereof ‘‘(g) ACTION IN CASE OF

3 FRAUD.—(1) In any case’’.

4 (b) FINANCING POLICY.—Such section, as amended

5 by subsection (a), is further amended by inserting after

6 the section heading the following new subsection (a):

7 ‘‘(a) POLICY.—Payments authorized under this sec8 tion and made for financing purposes should be made peri9 odically and in a timely manner to facilitate contract per10 formance while protecting the security interests of the

11 Government. Government financing shall be provided only

12 to the extent necessary to ensure prompt and efficient per13 formance and only after the availability of private financ14 ing is considered. A contractor’s use of funds received as

15 contract financing and the contractor’s financial condition

16 shall be monitored. If the contractor is a small business

17 concern, special attention shall be given to meeting the

18 contractor’s financial need.’’.

19 (c) PAY FOR PERFORMANCE.—Such section, as

20 amended by subsection (a), is further amended by insert21 ing after subsection (b) the following new subsection (c):

22 ‘‘(c) Payments under subsection (b) may be made on

23 any of the following bases:

24 ‘‘(1) Performance measured by objective, quan25 tifiable methods such as receipt of items by the Fed-
50

•S 1982 IS

1 eral Government, work measurement, or statistical

2 process controls.

3 ‘‘(2) Accomplishment of events defined in the

4 program management plan.

5 ‘‘(3) Other quantifiable measures of results.’’.

6 (d) TERMINOLOGY CORRECTION.—Such section, as

7 amended by subsection (a)(2), is further amended in sub8 section (b)(2) by striking out ‘‘bid’’.

9 (e) EFFECTIVE DATE OF LIEN RELATED TO AD10 VANCE PAYMENTS.—Such section, as amended by sub11 section (a)(4), is further amended in subsection (e) by in12 serting before the period at the end of the third sentence

13 the following: ‘‘and is effective immediately upon the first

14 advancement of funds without filing, notice, or any other

15 action by the United States’’.

16 (f) CONDITIONS FOR PROGRESS PAYMENTS.—Such

17 section, as amended by subsection (a)(5), is further

18 amended in subsection (f)—

19 (1) in the first sentence of paragraph (1), by

20 striking out ‘‘work, which’’ and all that follows

21 through the period at the end of such sentence and

22 inserting in lieu thereof ‘‘work accomplished that

23 meets standards established under the contract. The

24 determination of the extent of the work accom-
51

•S 1982 IS

1 plished may be measured on a basis set forth in sub2 section (c).’’; and

3 (2) by striking out paragraph (3) and inserting

4 in lieu thereof the following:

5 ‘‘(3) This subsection applies to a contract for an

6 amount equal to or greater than the simplified acquisition

7 threshold.’’.

8 (g) CONFORMING AND CLERICAL AMENDMENTS.—

9 (1) CROSS REFERENCE.—Such section, as

10 amended by subsection (a), is further amended in

11 subsections (d) and (e) by striking out ‘‘subsection

12 (a)’’ and inserting in lieu thereof ‘‘subsection (b)’’.

13 (2) TABLE OF CONTENTS.—The table of sec14 tions at the beginning of chapter 137 of title 10,

15 United States Code, is amended by striking out the

16 item relating to section 2307 and inserting in lieu

17 thereof the following:

‘‘2307. Contract financing.’’.

18 SEC. 502. CONTRACT FINANCING IN CIVILIAN AGENCY AC19 QUISITIONS.

20 (a) REORGANIZATION OF PRINCIPAL AUTHORITY

21 PROVISION.—Section 305 of the Federal Property and

22 Administrative Services Act of 1949 (41 U.S.C. 255) is

23 amended—

24 (1) by striking out the section heading and in25 serting in lieu thereof the following:
52

•S 1982 IS

1 ‘‘CONTRACT FINANCING’’;

2 (2) by striking out ‘‘(a) Any executive agency’’

3 and inserting in lieu thereof ‘‘(b) PAYMENT AU4 THORITY.—Any executive agency’’;

5 (3) by striking out ‘‘(b) Payments’’ and insert6 ing in lieu thereof ‘‘(d) PAYMENT AMOUNT.—Pay7 ments’’; and

8 (4) by striking out ‘‘(c) Advance payments’’ and

9 inserting in lieu thereof ‘‘(e) SECURITY FOR AD10 VANCE PAYMENTS.—Advance payments’’.

11 (b) FINANCING POLICY.—Such section, as amended

12 by subsection (a), is further amended by inserting after

13 the section heading the following new subsection (a):

14 ‘‘(a) POLICY.—Payments authorized under this sec15 tion and made for financing purposes should be made peri16 odically and in a timely manner to facilitate contract per17 formance while protecting the security interests of the

18 Government. Government financing shall be provided only

19 to the extent necessary to ensure prompt and efficient per20 formance and only after the availability of private financ21 ing is considered. A contractor’s use of funds received as

22 contract financing and the contractor’s financial condition

23 shall be monitored. If the contractor is a small business

24 concern, special attention shall be given to meeting the

25 contractor’s financial need.’’.
53

•S 1982 IS

1 (c) PAY FOR PERFORMANCE.—Such section, as

2 amended by subsection (a), is further amended by insert3 ing after subsection (b) the following new subsection (c):

4 ‘‘(c) Payments under subsection (b) may be made on

5 any of the following bases:

6 ‘‘(1) Performance measured by objective, quan7 tifiable methods such as receipt of items by the Fed8 eral Government, work measurement, or statistical

9 process controls.

10 ‘‘(2) Accomplishment of events defined in the

11 program management plan.

12 ‘‘(3) Other quantifiable measures of results.’’.

13 (d) TERMINOLOGY CORRECTION.—Such section, as

14 amended by subsection (a)(2), is further amended in sub15 section (b)(2) by striking out ‘‘bid’’.

16 (e) EFFECTIVE DATE OF LIEN RELATED TO AD17 VANCE PAYMENTS.—Such section, as amended by sub18 section (a)(4), is further amended in subsection (e) by in19 serting before the period at the end of the third sentence

20 the following: ‘‘and is effective immediately upon the first

21 advancement of funds without filing, notice, or any other

22 action by the United States’’.

23 (f) REVISION OF CIVILIAN AGENCY PROVISION TO

24 ENSURE UNIFORM REQUIREMENTS FOR PROGRESS PAY25 MENTS.—
54

•S 1982 IS

1 (1) IN GENERAL.—Such section, as amended by

2 subsection (a), is further amended by adding at the

3 end the following:

4 ‘‘(f) CONDITIONS FOR PROGRESS PAYMENTS.—(1)

5 The agency head shall ensure that any payment for work

6 in progress (including materials, labor, and other items)

7 under a contract of an executive agency that provides for

8 such payments is commensurate with the work accom9 plished that meets standards established under the con10 tract. The contractor shall provide such information and

11 evidence as the agency head determines necessary to per12 mit the agency head to carry out the preceding sentence.

13 ‘‘(2) The agency head shall ensure that progress pay14 ments referred to in paragraph (1) are not made for more

15 than 80 percent of the work accomplished under the con16 tract so long as the agency head has not made the contrac17 tual terms, specifications, and price definite.

18 ‘‘(3) This subsection applies to a contract for an

19 amount equal to or greater than the simplified acquisition

20 threshold.

21 ‘‘(g) ACTION IN CASE OF FRAUD.—(1) In any case

22 in which the remedy coordination official of an executive

23 agency finds that there is substantial evidence that the

24 request of a contractor for advance, partial, or progress

25 payment under a contract awarded by that executive agen-
55

•S 1982 IS

1 cy is based on fraud, the remedy coordination official shall

2 recommend that the agency head reduce or suspend fur3 ther payments to such contractor.

4 ‘‘(2) An agency head receiving a recommendation

5 under paragraph (1) in the case of a contractor’s request

6 for payment under a contract shall determine whether

7 there is substantial evidence that the request is based on

8 fraud. Upon making such a determination, the agency

9 head may reduce or suspend further payments to the con10 tractor under such contract.

11 ‘‘(3) The extent of any reduction or suspension of

12 payments by an agency head under paragraph (2) on the

13 basis of fraud shall be reasonably commensurate with the

14 anticipated loss to the United States resulting from the

15 fraud.

16 ‘‘(4) A written justification for each decision of the

17 agency head whether to reduce or suspend payments

18 under paragraph (2), and for each recommendation re19 ceived by the agency head in connection with such deci20 sion, shall be prepared and be retained in the files of the

21 executive agency.

22 ‘‘(5) Each agency head shall prescribe procedures to

23 ensure that, before the agency head decides to reduce or

24 suspend payments in the case of a contractor under para25 graph (2), the contractor is afforded notice of the pro-
56

•S 1982 IS

1 posed reduction or suspension and an opportunity to sub2 mit matters to the head of the agency in response to such

3 proposed reduction or suspension.

4 ‘‘(6) Not later than 180 days after the date on which

5 an agency head reduces or suspends payments to a con6 tractor under paragraph (2), the remedy coordination offi7 cial of the executive agency shall—

8 ‘‘(A) review the determination of fraud on

9 which the reduction or suspension is based; and

10 ‘‘(B) transmit a recommendation to the agency

11 head whether the suspension or reduction should

12 continue.

13 ‘‘(7) Each agency head who receives recommenda14 tions made by a remedy coordination official of the execu15 tive agency to reduce or suspend payments under para16 graph (2) during a fiscal year shall prepare for such year

17 a report that contains the recommendations, the actions

18 taken on the recommendations and the reasons for such

19 actions, and an assessment of the effects of such actions

20 on the Federal Government. Any such report shall be

21 available to any Member of Congress upon request.

22 ‘‘(8) An agency head may not delegate responsibilities

23 under this subsection to any person in a position below

24 level IV of the Executive Schedule.
57

•S 1982 IS

1 ‘‘(9) In this subsection, the term ‘remedy coordina2 tion official’, with respect to an executive agency, means

3 the person or entity in that executive agency who coordi4 nates within that executive agency the administration of

5 criminal, civil, administrative, and contractual remedies

6 resulting from investigations of fraud or corruption related

7 to procurement activities.’’.

8 (2) RELATIONSHIP TO PROMPT PAYMENT RE9 QUIREMENTS.—The amendments made by para10 graph (1) are not intended to impair or modify pro11 cedures required by the provisions of chapter 39 of

12 title 31, United States Code, and the regulations is13 sued pursuant to such provisions of law, that relate

14 to progress payment requests, as such procedures

15 are in effect on the effective date of this Act.

16 (g) CONFORMING AND CLERICAL AMENDMENTS.—

17 (1) REFERENCE.—Section 305 of the Federal

18 Property and Administrative Services Act of 1949,

19 as amended by subsection (a), is further amended in

20 subsections (c) and (d) by striking out ‘‘subsection

21 (a)’’ and inserting in lieu thereof ‘‘subsection (b)’’.

22 (2) TABLE OF CONTENTS.—The table of con23 tents in the first section of such Act is amended by

24 striking out the item relating to section 305 and in25 serting in lieu thereof the following:

‘‘Sec. 305. Contract financing.’’.
58

•S 1982 IS

1 TITLE VI—DAVIS-BACON ACT

2 EXEMPTION

3 SEC. 601. CONTRACTS NOT IN EXCESS OF $500,000.

4 (a) IN GENERAL.—The first section of the Act of

5 March 3, 1931 (40 U.S.C. 276a), commonly referred to

6 as the ‘‘Davis-Bacon Act’’, is amended in subsection (a)

7 by striking out ‘‘$2,000’’ and inserting in lieu thereof

8 ‘‘$500,000’’.

9 (b) RELATED REGULATIONS.—Section 2 of the Act

10 of June 13, 1934 (40 U.S.C. 276c) is amended by insert11 ing after ‘‘engaged’’ the following: ‘‘under contracts in ex12 cess of $500,000’’.

13 TITLE VII—MISCELLANEOUS

14 CONFORMING AMENDMENTS

15 SEC. 701. MODIFICATION OF THE RESPONSIBILITY OF THE

16 COMPTROLLER OF THE DEPARTMENT OF DE17 FENSE FOR DEFENSE ACQUISITION BUDG18 ETS.

19 Section 137(c) of title 10, United States Code, is

20 amended in each of paragraphs (2), (3), and (4), by insert21 ing after the paragraph designation the following: ‘‘subject

22 to section 133(b) of this title,’’.
59

•S 1982 IS

1 SEC. 702. THE DEFENSE ACQUISITION WORK FORCE.

2 (a) GENERAL AUTHORITIES AND RESPONSIBIL3 ITIES.—(1)(A) Sections 1704, 1705, and 1707 of title 10,

4 United States Code, are repealed.

5 (B) The table of sections at the beginning of sub6 chapter I of chapter 87 of such title is amended by strik7 ing out the items relating to sections 1704 through 1707

8 and inserting in lieu thereof the following:

‘‘1704. Acquisition career program boards.’’.

9 (2) Section 1706 of title 10, United States Code, is

10 amended—

11 (A) in the section heading by striking out

12 ‘‘§ 1706’’ and inserting in lieu thereof ‘‘§ 1704’’;

13 (B) by striking out subsection (a) and inserting

14 in lieu thereof the following:

15 ‘‘(a) ESTABLISHMENT.—The Under Secretary of De16 fense for Acquisition shall establish an acquisition career

17 program board to advise the Under Secretary in managing

18 the accession, training, education, and career development

19 of military and civilian personnel in the acquisition

20 workforce and in selecting individuals for the Acquisition

21 Corps under section 1731 of this title.’’;

22 (C) in subsection (b)—

23 (i) in the first sentence, by striking out

24 ‘‘Each’’ and inserting in lieu thereof ‘‘The’’;

25 and
60

•S 1982 IS

1 (ii) in the second sentence, by striking out

2 ‘‘service acquisition executive’’ and inserting in

3 lieu thereof ‘‘Under Secretary’’; and

4 (D) in subsection (c)—

5 (i) by striking out ‘‘Secretary of a military

6 department’’ and inserting in lieu thereof

7 ‘‘Under Secretary’’; and

8 (ii) by striking out ‘‘in the department’’.

9 (b) DEFENSE ACQUISITION POSITIONS.—(1) Section

10 1722 of title 10, United States Code, is amended—

11 (A) in subsection (g), by striking out ‘‘Sec12 retary of each military department, acting through

13 the service acquisition executive for that depart14 ment,’’ and inserting in lieu thereof ‘‘Secretary of

15 Defense’’; and

16 (B) in subsection (h), by striking out ‘‘or the

17 Secretary of a military department (as applicable)’’.

18 (2) Section 1724(d) of such title is amended in the

19 first sentence—

20 (A) by striking out ‘‘a military department’’

21 and inserting in lieu thereof ‘‘the Department of De22 fense’’; and

23 (B) by striking out ‘‘of that military depart24 ment’’.
61

•S 1982 IS

1 (c) ACQUISITION CORPS.—(1) Section 1731 of title

2 10, United States Code, is amended—

3 (A) by striking out subsection (a) and inserting

4 in lieu thereof the following:

5 ‘‘(a) ACQUISITION CORPS.—The Secretary of Defense

6 shall establish a Department of Defense Acquisition

7 Corps.’’; and

8 (B) in subsection (b), by striking out ‘‘an Ac9 quisition Corps’’ and inserting in lieu thereof ‘‘the

10 Acquisition Corps’’.

11 (2) Section 1732 of such title is amended—

12 (A) in subsection (b)—

13 (i) in paragraph (2)(A)(ii), by striking out

14 ‘‘of the employing military department’’; and

15 (ii) in paragraph (4), by striking out ‘‘or

16 the Secretary of the military department con17 cerned’’; and

18 (B) in subsection (d)—

19 (i) by striking out ‘‘of a military depart20 ment’’ in the first sentence of paragraph (1)

21 and in paragraph (2); and

22 (ii) by striking out ‘‘of that military de23 partment’’ in the first sentence of paragraph

24 (1).
62

•S 1982 IS

1 (3) Section 1733(a) of such title is amended by strik2 ing out ‘‘an Acquisition Corps’’ and inserting in lieu there3 of ‘‘the Acquisition Corps’’.

4 (4) Section 1734(a) of such title is amended—

5 (A) in paragraph (1)—

6 (i) in the first sentence, by striking out

7 ‘‘Secretary of each military department, acting

8 through the service acquisition executive for

9 that department,’’ and inserting in lieu thereof

10 ‘‘Secretary of Defense, acting through the

11 Under Secretary of Defense for Acquisition,’’;

12 and

13 (ii) in the second sentence, by striking out

14 ‘‘concerned’’; and

15 (B) in paragraph (2), by striking out ‘‘con16 cerned’’ in the second sentence.

17 (5) Section 1738 of title 10, United States Code (as

18 redesignated by section 203(b)(1)(A)), is amended—

19 (A) in subsection (a)—

20 (i) in paragraph (1), by striking out ‘‘an

21 Acquisition Corps’’ and inserting in lieu thereof

22 ‘‘the Acquisition Corps’’; and

23 (ii) in paragraph (5), by striking out ‘‘,

24 serving’’ and all that follows through ‘‘Depart25 ment of Defense’’; and
63

•S 1982 IS

1 (B) by striking out subsection (c) and inserting

2 in lieu thereof the following:

3 ‘‘(c) WAIVER.—(1) The Secretary of Defense may

4 waive, on a case-by-case basis, the requirements estab5 lished under this subchapter with respect to the assign6 ment of an individual to a particular critical acquisition

7 position. Such a waiver may be granted only if unusual

8 circumstances justify the waiver or if the Secretary deter9 mines that the individual’s qualifications obviate the need

10 for meeting the education, training, and experience re11 quirements established under this subchapter.

12 ‘‘(2) The Secretary shall act through the Under Sec13 retary of Defense for Acquisition in exercising the author14 ity provided in paragraph (1). The authority to grant

15 waivers under this subsection may be delegated by the

16 Under Secretary only to the Director of Acquisition Edu17 cation, Training, and Career Development.’’.

18 (d) EDUCATION AND TRAINING.—(1) Section

19 1741(c) of title 10, United States Code, is amended to

20 read as follows:

21 ‘‘(c) PROGRAMS.—The Under Secretary shall estab22 lish and implement the education and training programs

23 authorized by this subchapter.’’.

24 (2) Section 1742 of such title is amended by striking

25 out ‘‘require that each military department’’.
64

•S 1982 IS

1 (3) Section 1743 of such title is amended in the first

2 sentence by striking out ‘‘require that the Secretary of

3 each military department’’.

4 (e) GENERAL MANAGEMENT.—(1) Section 1761(a)

5 of title 10, United States Code, is amended by striking

6 out ‘‘prescribe regulations to ensure that the military de7 partments and Defense Agencies’’.

8 (2) Section 1762(c) of such title is amended—

9 (A) by striking out the parenthetical material in

10 the matter above paragraph (1); and

11 (B) in paragraph (4)(A), by striking out ‘‘an

12 acquisition corps’’ and inserting in lieu thereof ‘‘the

13 Acquisition Corps’’.

14 (3) Section 1763 of such title is amended by striking

15 out the second sentence.

16 SEC. 703. PROCUREMENT PROCEDURES GENERALLY.

17 Chapter 137 of title 10, United States Code, is

18 amended as follows:

19 (1) Section 2305(d) is amended—

20 (A) in the first sentence of paragraph

21 (1)(A), by striking out ‘‘shall ensure that,’’ and

22 all that follows through ‘‘the head of an agen23 cy’’ and inserting in lieu thereof ‘‘, in preparing

24 a solicitation for the award of a development

25 contract for a major system, shall’’;
65

•S 1982 IS

1 (B) in the first sentence of paragraph

2 (2)(A), by striking out ‘‘shall ensure that,’’ and

3 all that follows through ‘‘the head of an agen4 cy’’ and inserting in lieu thereof ‘‘, in preparing

5 a solicitation for the award of a production con6 tract for a major system, shall’’;

7 (C) by striking out ‘‘the head of the agen8 cy’’ each place it appears and inserting in lieu

9 thereof ‘‘the Secretary’’; and

10 (D) by striking out ‘‘the head of an agen11 cy’’ each place it appears and inserting in lieu

12 thereof ‘‘the Secretary of Defense’’.

13 (2) Section 2306(h) is amended—

14 (A) in paragraph (1), by striking out ‘‘the

15 head of an agency’’ in the matter above sub16 paragraph (A) and inserting in lieu thereof ‘‘the

17 Secretary of Defense’’;

18 (B) in paragraph (2)(D), by striking out

19 ‘‘agencies in’’ in the matter above clause (i);

20 (C) in paragraph (3), by striking out ‘‘the

21 head of the agency concerned’’ and inserting in

22 lieu thereof ‘‘the Secretary of Defense’’;

23 (D) by striking out paragraph (7);
66

•S 1982 IS

1 (E) in paragraph (10), by striking out ‘‘in2 struct the Secretary of the military department

3 concerned to’’; and

4 (F) by redesignating paragraphs (8), (9),

5 (10), and (11) as paragraphs (7), (8), (9), and

6 (10), respectively.

7 (3) Section 2307, as amended by section

8 501(a)(6), is further amended in subsection (g)(7),

9 by striking out the second sentence.

10 (4) Section 2311 is amended—

11 (A) by striking out ‘‘Except as provided

12 in’’ and inserting in lieu thereof ‘‘(a) Except as

13 provided in subsection (b) and’’; and

14 (B) by adding at the end the following new

15 subsection:

16 ‘‘(b) The Secretary of Defense may delegate any au17 thority of the Secretary under this chapter only to—

18 ‘‘(1) the Deputy Secretary of Defense, who may

19 successively delegate such authority only to the

20 Under Secretary of Defense for Acquisition;

21 ‘‘(2) the Under Secretary of Defense for Acqui22 sition; or

23 ‘‘(3) any acquisition program executive officer

24 or acquisition program manager of the Defense Re25 search, Development, and Acquisition Agency.’’.
67

•S 1982 IS

1 (5) Section 2318 is amended—

2 (A) in subsection (a), by striking out ‘‘De3 fense Logistics Agency’’ each place it appears

4 and inserting in lieu thereof ‘‘Defense Research,

5 Development, and Acquisition Agency’’; and

6 (B) in subsection (c), by striking out

7 ‘‘Each advocate for competition of an agency’’

8 and inserting in lieu thereof ‘‘The advocate for

9 competition’’.

10 (6) Section 2320(b) is amended—

11 (A) in the matter above paragraph (1), by

12 striking out ‘‘an agency named in section 2303

13 of this title’’ and inserting in lieu thereof ‘‘the

14 Department of Defense’’; and

15 (B) in paragraph (9), by striking out ‘‘the

16 head of the agency to withhold’’ and inserting

17 in lieu thereof ‘‘the withholding of’’.

18 (7) Section 2324 is amended—

19 (A) in subsection (e)—

20 (i) in paragraph (2)(C), by striking

21 out ‘‘head of the agency awarding the con22 tract’’ and inserting in lieu thereof ‘‘Sec23 retary’’; and

24 (ii) in paragraph (3)—
68

•S 1982 IS

1 (I) in subparagraph (A), by strik2 ing out the matter above clause (i)

3 and inserting in lieu thereof the fol4 lowing:

5 ‘‘(A) Pursuant to regulations prescribed by the Sec6 retary and subject to the availability of appropriations, the

7 Secretary may waive the application of the provisions of

8 subparagraphs (M) and (N) of paragraph (1) to a covered

9 contract (other than a contract to which paragraph (2)

10 applies) if the Secretary determines that—’’;

11 (II) by striking out ‘‘head of an

12 agency’’ each place it appears in sub13 paragraphs (B) and (C); and

14 (III) in subparagraph (B)(ii), by

15 striking out ‘‘head of the agency will

16 consider granting such waiver, and, if

17 the agency head’’ and inserting in lieu

18 thereof ‘‘Secretary will consider grant19 ing such waiver, and, if the Sec20 retary’’;

21 (B) in subsection (h)(2), by striking out

22 ‘‘or the Secretary of the military department

23 concerned’’; and

24 (C) in subsection (k)(4)—
69

•S 1982 IS

1 (i) by striking out ‘‘the head of the

2 agency that awarded the covered contract’’

3 and inserting in lieu thereof ‘‘the Secretary

4 of Defense’’;

5 (ii) by striking out ‘‘the agency head’’

6 and inserting in lieu thereof ‘‘the Sec7 retary’’;

8 (iii) by striking out ‘‘such agency

9 head’’ and inserting in lieu thereof ‘‘the

10 Secretary’’; and

11 (iv) in subparagraph (B), by striking

12 out ‘‘agency’’ and inserting in lieu thereof

13 ‘‘Department of Defense’’.

14 (8) Section 2326 is amended—

15 (A) by striking out ‘‘head of an agency’’

16 each place it appears and inserting in lieu

17 thereof ‘‘Secretary of Defense’’;

18 (B) by striking out ‘‘head of the agency’’

19 each place it appears and inserting in lieu

20 thereof ‘‘Secretary of Defense’’; and

21 (C) in subsection (a), by striking out ‘‘mili22 tary department concerned’’ and inserting in

23 lieu thereof ‘‘Department of Defense’’.

24 (9) Section 2327 is amended—
70

•S 1982 IS

1 (A) in subsection (a), by striking out ‘‘The

2 head of an agency’’ and inserting in lieu thereof

3 ‘‘The Secretary of Defense’’;

4 (B) in subsection (b), by striking out ‘‘the

5 head of an agency’’ and inserting in lieu thereof

6 ‘‘the Secretary of Defense’’;

7 (C) in subsection (c)(1)—

8 (i) by striking out ‘‘the head of an

9 agency’’ each place it appears and insert10 ing in lieu thereof ‘‘the Secretary’’; and

11 (ii) by striking out ‘‘such head of an

12 agency’’ each place it appears and insert13 ing in lieu thereof ‘‘the Secretary’’;

14 (D) in subsection (c)(2), by striking out

15 ‘‘Upon the request of the head of an agency,

16 the’’ and inserting in lieu thereof ‘‘The’’; and

17 (E) in subsection (d)—

18 (i) by striking out ‘‘(1)’’; and

19 (ii) by striking out paragraph (2).

20 (10) Section 2329 is amended—

21 (A) in subsection (a), by striking out the

22 second sentence;

23 (B) in subsection (b), by striking out ‘‘the

24 Secretary of a military department’’ and insert-
71

•S 1982 IS

1 ing in lieu thereof ‘‘the Secretary of Defense’’;

2 and

3 (C) in subsection (c)—

4 (i) by striking out ‘‘the Secretary con5 cerned’’ each place it appears and inserting

6 in lieu thereof ‘‘the Secretary of Defense’’;

7 and

8 (ii) by striking out the second sen9 tence of paragraph (3).

10 SEC. 704. RESEARCH AND DEVELOPMENT.

11 Chapter 139 of title 10, United States Code, is

12 amended as follows:

13 (1) Section 2352(a) is amended in the matter

14 above paragraph (1)—

15 (A) by striking out ‘‘The Secretary of a

16 military department’’ and inserting in lieu

17 thereof ‘‘The Secretary of Defense’’; and

18 (B) by striking out ‘‘of that military de19 partment’’.

20 (2) Section 2353 is amended—

21 (A) in the first sentence of subsection

22 (a)—

23 (i) by striking out ‘‘contract of a mili24 tary department’’ and inserting in lieu
72

•S 1982 IS

1 thereof ‘‘Department of Defense contract’’;

2 and

3 (ii) by striking out ‘‘the Secretary of

4 the military department concerned’’ and

5 inserting in lieu thereof ‘‘the Secretary of

6 Defense’’; and

7 (B) in subsection (b)(3), by striking out

8 ‘‘the Secretary concerned’’ and inserting in lieu

9 thereof ‘‘the Secretary of Defense’’.

10 (3) Section 2354 is amended—

11 (A) in subsection (a), by striking out ‘‘the

12 Secretary of the military department concerned,

13 any contract of a military department’’ and in14 serting in lieu thereof ‘‘the Secretary of De15 fense, any contract of the Department of De16 fense’’;

17 (B) in subsection (c)—

18 (i) by striking out ‘‘the Secretary of

19 the department concerned’’ and inserting

20 in lieu thereof ‘‘the Secretary of Defense’’;

21 and

22 (ii) by striking out ‘‘of his depart23 ment’’; and
73

•S 1982 IS

1 (C) in subsection (d), by striking out ‘‘the

2 Secretary concerned’’ and inserting in lieu

3 thereof ‘‘the Secretary of Defense’’.

4 (4) Section 2355 is amended—

5 (A) by striking out ‘‘Secretary of each

6 military department’’ and all that follows

7 through ‘‘Comptroller General,’’ and inserting

8 in lieu thereof ‘‘Secretary of Defense, with the

9 approval of the Comptroller General, may’’; and

10 (B) by striking out ‘‘his department’’.

11 (5) Section 2356(a) is amended to read as

12 follows:

13 ‘‘(a)(1) Except as provided in paragraph (2), the Sec14 retary of Defense may delegate any authority under sec15 tion 1584, 2353, 2354, 2355, or 2358 of this title to—

16 ‘‘(A) the Deputy Secretary of Defense, who may

17 successively delegate such authority only to the

18 Under Secretary of Defense for Acquisition;

19 ‘‘(B) the Under Secretary of Defense for Acqui20 sition; or

21 ‘‘(C) any employee of the Defense Research,

22 Development, and Acquisition Agency.

23 ‘‘(2) The authority of the Secretary under section

24 2353(b)(3) of this title may not be delegated to a person

25 described in paragraph (1)(C).’’.
74

•S 1982 IS

1 (6) Section 2367(c) is amended to read as fol2 lows:

3 ‘‘(c) Funds appropriated to the Department of De4 fense may not be obligated or expended for purposes of

5 operating a federally funded research center that was not

6 in existence before June 2, 1986, until—

7 ‘‘(1) the Secretary of Defense submits to Con8 gress a report with respect to such center that de9 scribes the purpose, mission, and general scope of ef10 fort of the center; and

11 ‘‘(2) 60 days elapse after the date on which

12 such report is received by Congress.’’.

13 (7) Section 2369 is amended—

14 (A) in subsection (a), by striking out ‘‘a

15 program for the supervision and coordination

16 of’’ and inserting in lieu thereof ‘‘and conduct

17 appropriate’’; and

18 (B) by striking out subsection (b) and in19 serting in lieu thereof the following:

20 ‘‘(b) PURPOSE OF PRODUCT EVALUATION.—The

21 purpose of each product evaluation activity established

22 under subsection (a) is to evaluate products developed by

23 private industry independent of any contract or other ar24 rangement with the United States in order to determine
75

•S 1982 IS

1 the utility of such products in the Department of De2 fense.’’.

3 (8) Subsections (a) and (g) of section 2371 are

4 amended by striking out ‘‘in carrying out advanced

5 research projects through the Defense Advanced Re6 search Projects Agency, and the Secretary of each

7 military department,’’.

8 SEC. 705. MISCELLANEOUS PROCUREMENT PROVISIONS.

9 Chapter 141 of title 10, United States Code, is

10 amended as follows:

11 (1) Section 2381 is amended—

12 (A) in subsection (a)—

13 (i) by striking out ‘‘The Secretary of

14 a military department’’ and inserting in

15 lieu thereof ‘‘The Secretary of Defense’’;

16 and

17 (ii) by striking out ‘‘that department’’

18 in paragraph (1) and inserting in lieu

19 thereof ‘‘the Department of Defense’’; and

20 (B) in subsection (b)—

21 (i) in the matter above paragraph (1),

22 by striking out ‘‘the Secretary concerned’’

23 and inserting in lieu thereof ‘‘the Secretary

24 of Defense’’; and
76

•S 1982 IS

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

2 ‘‘military department concerned’’ and in3 serting in lieu thereof ‘‘Department of De4 fense’’.

5 (2) Section 2385 is amended by striking out ‘‘a

6 military department’’ and inserting in lieu thereof

7 ‘‘the Department of Defense’’.

8 (3) Section 2386 is amended by striking out ‘‘a

9 military department’’ and inserting in lieu thereof

10 ‘‘the Department of Defense’’.

11 (4) Section 2388(a) is amended by striking out

12 ‘‘The Secretary of a military department’’ and in13 serting in lieu thereof ‘‘The Secretary of Defense’’.

14 (5) Section 2393 is amended—

15 (A) in subsection (a)—

16 (i) by striking out ‘‘the Secretary of a

17 military department’’ in paragraph (1) and

18 inserting in lieu thereof ‘‘the Secretary of

19 Defense’’; and

20 (ii) by striking out ‘‘the Secretary

21 concerned’’ in paragraph (2) and inserting

22 in lieu thereof ‘‘the Secretary of Defense’’;

23 and
77

•S 1982 IS

1 (B) in subsection (b), by striking out ‘‘the

2 Secretary concerned’’ and inserting in lieu

3 thereof ‘‘the Secretary of Defense’’.

4 (6) Section 2394 is amended—

5 (A) in subsection (a), by striking out ‘‘the

6 Secretary of a military department’’ and insert7 ing in lieu thereof ‘‘the Secretary of Defense’’;

8 (B) by striking out subsection (b); and

9 (C) by redesignating subsection (c) as sub10 section (b).

11 (7) Section 2394a is amended—

12 (A) in subsection (a)—

13 (i) by striking out ‘‘Secretary of a

14 military department’’ and inserting in lieu

15 thereof ‘‘Secretary of Defense’’; and

16 (ii) by striking out ‘‘military depart17 ment under his jurisdiction’’ and inserting

18 in lieu thereof ‘‘Department of Defense’’;

19 and

20 (B) in subsection (b), by striking out the

21 second sentence.

22 (8) Section 2401(a) is amended by striking out

23 ‘‘The Secretary of a military department’’ both

24 places it appears and inserting in lieu thereof ‘‘The

25 Secretary of Defense’’.
78

•S 1982 IS

1 (9) Section 2403 is amended—

2 (A) in subsection (a), by striking out para3 graph (8);

4 (B) in subsection (b), by striking out ‘‘the

5 head of an agency’’ in the matter above para6 graph (1) and inserting in lieu thereof ‘‘the

7 Secretary of Defense’’;

8 (C) in subsections (c), (f), and (g), by

9 striking out ‘‘head of the agency concerned’’

10 each place it appears and inserting in lieu

11 thereof ‘‘Secretary of Defense’’;

12 (D) in subsection (d)—

13 (i) by inserting ‘‘(1)’’ after the sub14 section designation;

15 (ii) by redesignating paragraphs (1)

16 and (2) as subparagraphs (A) and (B),

17 respectively;

18 (iii) by striking out the second sen19 tence; and

20 (iv) by adding at the end the following

21 new paragraph:

22 ‘‘(2) The Secretary may delegate authority under this

23 subsection only to the Under Secretary of Defense for Ac24 quisition.’’; and

25 (E) in subsection (h)—
79

•S 1982 IS

1 (i) by striking out ‘‘(1)’’; and

2 (ii) by striking out paragraph (2).

3 (10) Section 2405(a) is amended by striking

4 out ‘‘The Secretary of a military department’’ and

5 inserting in lieu thereof ‘‘The Secretary of Defense’’.

6 (11) Section 2406 is amended—

7 (A) in subsection (a)—

8 (i) by striking out ‘‘head of an agen9 cy’’ and inserting in lieu thereof ‘‘Sec10 retary of Defense’’;

11 (ii) by striking out ‘‘with that agen12 cy’’; and

13 (iii) by striking out ‘‘head of the agen14 cy’’ each place it appears and inserting in

15 lieu thereof ‘‘Secretary’’; and

16 (B) in subsection (f)—

17 (i) by striking out paragraph (1);

18 (ii) by redesignating paragraphs (2),

19 (3), and (4) as paragraphs (1), (2), and

20 (3), respectively;

21 (iii) by striking out ‘‘2432(a)’’ and in22 serting in lieu thereof ‘‘2430’’ in para23 graph (1) (as redesignated by clause (ii));

24 and
80

•S 1982 IS

1 (iv) by striking out ‘‘the head of an

2 agency’’ and inserting in lieu thereof ‘‘the

3 Secretary of Defense’’ in paragraph (3) (as

4 redesignated by clause (ii)).

5 (12) Section 2411(3) is amended by striking

6 out ‘‘Director of the Defense Logistics Agency’’ and

7 inserting in lieu thereof ‘‘Under Secretary of De8 fense for Acquisition’’.

9 SEC. 706. MAJOR DEFENSE ACQUISITION PROGRAMS.

10 Chapter 144 of title 10, United States Code, is

11 amended as follows:

12 (1) Section 2433 is amended—

13 (A) by striking out ‘‘service acquisition ex14 ecutive designated by the Secretary concerned’’

15 each place it appears and inserting in lieu

16 thereof ‘‘Under Secretary of Defense for Acqui17 sition’’;

18 (B) in subsection (c)(2), by striking out

19 ‘‘such service acquisition executive’’ each place

20 it appears and inserting in lieu thereof ‘‘the

21 Under Secretary of Defense for Acquisition’’;

22 (C) in subsection (d)—

23 (i) by striking out ‘‘the service acqui24 sition executive’’ in paragraphs (1) and (2)
81

•S 1982 IS

1 and inserting in lieu thereof ‘‘the Under

2 Secretary’’; and

3 (ii) in paragraph (3), by striking out

4 ‘‘If, based upon the service acquisition ex5 ecutive’s determination, the Secretary con6 cerned’’ and inserting in lieu thereof ‘‘If

7 the Under Secretary of Defense for Acqui8 sition’’; and

9 (D) in subsection (e)—

10 (i) in paragraph (1)(A), by striking

11 out ‘‘Secretary concerned’’ and inserting in

12 lieu thereof ‘‘Under Secretary of Defense

13 for Acquisition’’;

14 (ii) in paragraph (1)(B), by striking

15 out ‘‘Secretary’’ and inserting in lieu

16 thereof ‘‘Under Secretary’’;

17 (iii) in paragraph (2), by striking out

18 ‘‘(as determined by the Secretary’’ in the

19 matter above subparagraph (A) and insert20 ing in lieu thereof ‘‘(as determined by the

21 Under Secretary’’; and

22 (iv) in paragraph (3), by striking out

23 ‘‘by the Secretary’’ both places it appears

24 in the first sentence and inserting in lieu

25 thereof ‘‘by the Under Secretary’’.
82

•S 1982 IS

1 (2) Section 2434(b)(1) is amended by striking

2 out ‘‘the military department,’’ and all that follows

3 and inserting in lieu thereof ‘‘Department of De4 fense.’’.

5 (3) Section 2435 is amended—

6 (A) in subsection (a)(1), by striking out

7 the matter above subparagraph (A) and insert8 ing in lieu thereof the following:

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

10 The Under Secretary of Defense for Acquisition shall es11 tablish a baseline description for each major defense ac12 quisition program—’’; and

13 (B) in subsection (b)—

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

15 ‘‘Secretary of the military department con16 cerned and to the service acquisition execu17 tive designated by such Secretary’’ and in18 serting in lieu thereof ‘‘Under Secretary of

19 Defense for Acquisition’’; and

20 (ii) in paragraph (2), in the matter

21 above subparagraph (A)—

22 (I) by striking out ‘‘The Sec23 retary of the military department con24 cerned’’ and inserting in lieu thereof
83

•S 1982 IS

1 ‘‘The Under Secretary of Defense for

2 Acquisition’’; and

3 (II) by striking out ‘‘180

4 days—’’ and all that follows and in5 serting in lieu thereof the following:

6 ‘‘180 days, establish a review panel to

7 review such program and to submit to

8 the Under Secretary a report on the

9 results of such review within 45 days

10 after the date on which the program

11 deviation report is submitted under

12 paragraph (1).’’.

13 (4) Section 2436 is amended—

14 (A) in subsection (a)—

15 (i) by striking out ‘‘, through the Sec16 retaries of the military departments,’’; and

17 (ii) by striking out ‘‘senior procure18 ment executive of the military department

19 concerned’’ and inserting in lieu thereof

20 ‘‘Under Secretary of Defense for Acquisi21 tion’’;

22 (B) in subsection (b)—

23 (i) by striking out ‘‘Secretary of a

24 military department’’ and inserting in lieu

25 thereof ‘‘Secretary’’; and
84

•S 1982 IS

1 (ii) by striking out ‘‘under the juris2 diction of the Secretary’’;

3 (C) in subsection (c)—

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

5 ‘‘Secretary concerned’’ and inserting in

6 lieu thereof ‘‘Under Secretary of Defense

7 for Acquisition’’; and

8 (ii) in paragraph (3), by striking out

9 ‘‘senior procurement executive’’ and all

10 that follows and inserting in lieu thereof

11 ‘‘Under Secretary.’’; and

12 (D) in subsection (d), by striking out ‘‘the

13 senior procurement executive of the military de14 partment concerned, with the approval of’’.

15 (5)(A) Section 2437 is repealed.

16 (B) The table of sections at the beginning of

17 chapter 144 is amended by striking out the item re18 lating to section 2437.

19 SEC. 707. SERVICE SPECIFIC ACQUISITION AUTHORITY.

20 (a) ARMY.—Part IV of subtitle B of title 10, United

21 States Code, is amended by striking out ‘‘Secretary of the

22 Army’’ in sections 4501(c), 4502(a), 4503, 4504, 4505,

23 4506, 4507, 4508(a), 4531, 4532(a), 4533, 4535, 4537,

24 4538, 4540(a), and 4542 (each place it appears) and in25 serting in lieu thereof ‘‘Secretary of Defense’’.
85

•S 1982 IS

1 (b) NAVY.—Part IV of subtitle C of such title is

2 amended as follows:

3 (1) Strike out ‘‘Secretary of the Navy’’ in sec4 tions 7201, 7203(a), 7210(a), 7212(a), 7213, 7229,

5 7299a (each place it appears), 7301(a), 7309(e),

6 7311(a), 7311(b), 7312 (each place it appears),

7 7314, 7341(a), 7342(b), 7345(a), 7361 (each place

8 it appears), 7362, 7364, 7365, and 7521 and insert

9 in lieu thereof ‘‘Secretary of Defense’’.

10 (2) Section 7203 is amended—

11 (A) in subsection (a), by striking out

12 ‘‘(a)’’; and

13 (B) by striking out subsection (b).

14 (3) Section 7210 is amended—

15 (A) in subsection (a), by striking out

16 ‘‘(a)’’; and

17 (B) by striking out subsection (b).

18 (4) Section 7310(a) is amended by striking out

19 ‘‘Navy’’ the first place it appears in the second sen20 tence and inserting in lieu thereof ‘‘Secretary of De21 fense’’.

22 (5) Section 7311(a)(1) is amended by striking

23 out ‘‘Navy’’ the first place it appears and inserting

24 in lieu thereof ‘‘Secretary of Defense’’.
86

•S 1982 IS

1 (6) Section 7314(2) is amended by striking out

2 ‘‘Navy’’ and inserting in lieu thereof ‘‘Department of

3 Defense’’.

4 (7) Section 7363 is amended in the first sen5 tence—

6 (A) by striking out ‘‘Department of the

7 Navy’’ and inserting in lieu thereof ‘‘Secretary

8 of Defense’’; and

9 (B) by striking out ‘‘Secretary’’ and insert10 ing in lieu thereof ‘‘Secretary of Defense’’.

11 (8) Section 7521 is amended by striking out

12 ‘‘contract made by the Department of the Navy’’ in

13 the first sentence and inserting in lieu thereof ‘‘con14 tract entered into for the Department of the Navy’’.

15 (9) Section 7522 is amended by striking out

16 ‘‘Secretary of the Navy’’ and all that follows through

17 ‘‘chiefs of bureaus’’ and inserting in lieu thereof

18 ‘‘Secretary of Defense’’.

19 (c) AIR FORCE.—Part IV of subtitle D of such title

20 is amended in sections 9501(c), 9502(a), 9503, 9504,

21 9505, 9506, 9507, 9511(11), 9531, 9532, 9535, 9537,

22 9538(a), and 9540(a) by striking out ‘‘Secretary of the

23 Air Force’’ and inserting in lieu thereof ‘‘Secretary of De24 fense’’.
87

•S 1982 IS

1 SEC. 708. OTHER LAWS.

2 In any other provision of law providing authority for

3 the Secretary of a military department or the head of a

4 Defense Agency of the Department of Defense to perform

5 a research, development, or acquisition function of the De6 partment of Defense, the reference to that official shall

7 be deemed to refer to the Secretary of Defense. That func8 tion shall be performed as provided in section 133(b) of

9 title 10, United States Code (as amended by section

10 301(a)), and section 232 of such title (as added by section

11 301(b)).

12 TITLE VIII—EFFECTIVE DATE

13 SEC. 801. EFFECTIVE DATE.

14 This Act and the amendments made by this Act shall

15 take effect on the first day of the fiscal year that begins

16 on or after the date of the enactment of this Act and,

17 in the case of provisions and amendments that set forth

18 contracting procedures, shall apply with respect to con19 tract solicitations that are issued on or after such effective

20 date.

Æ

S 1982 IS——2

S 1982 IS——3

S 1982 IS——4

S 1982 IS——5

S 1982 IS——6