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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4228 Introduced in House (IH)]

108th CONGRESS
  2d Session
                                H. R. 4228

             To provide for an improved acquisition system.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2004

 Mr. Tom Davis of Virginia (for himself and Mr. Hunter) introduced the 
   following bill; which was referred to the Committee on Government 
   Reform, and in addition to the Committee on Armed Services, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
             To provide for an improved acquisition system.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Acquisition System 
Improvement Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                   TITLE I--ACQUISITION IMPROVEMENTS

Sec. 101. Government-industry exchange program.
Sec. 102. Share-in-savings initiatives.
Sec. 103. Inflation adjustment for acquisition-related dollar 
                            thresholds.
Sec. 104. Agency acquisition protests.
Sec. 105. Extension of authority for use of simplified acquisition 
                            procedures.
Sec. 106. Redundancy in procurement of telecommunications services.
                 TITLE II--CONTRACT DISPUTE ENHANCEMENT

                     Subtitle A--General Provisions

Sec. 211. Definitions.
 Subtitle B--Establishment of Civilian and Defense Boards of Contract 
                                Appeals

Sec. 221. Establishment.
Sec. 222. Membership.
Sec. 223. Chairmen.
Sec. 224. Rulemaking authority.
Sec. 225. Authorization of appropriations.
   Subtitle C--Functions of Defense and Civilian Boards of Contract 
                                Appeals

Sec. 231. Contract disputes.
Sec. 232. Enhanced access for small business.
Sec. 233. Applicability to certain contracts.
     Subtitle D--Transfers and Transition, Savings, and Conforming 
                               Provisions

Sec. 241. Transfer and allocation of appropriations and personnel.
Sec. 242. Terminations and savings provisions.
Sec. 243. Contract disputes authority of Boards.
Sec. 244. References to agency Boards of contract appeals.
Sec. 245. Conforming amendments.
  Subtitle E--Effective Date; Regulations and Appointment of Chairmen

Sec. 251. Effective date.
Sec. 252. Regulations.
Sec. 253. Appointment of Chairmen of Defense Board and Civilian Board.

                   TITLE I--ACQUISITION IMPROVEMENTS

SEC. 101. GOVERNMENT-INDUSTRY EXCHANGE PROGRAM.

    (a) In General.--Subpart B of part III of title 5, United States 
Code, is amended by adding at the end the following:

        ``CHAPTER 38--ACQUISITION PROFESSIONAL EXCHANGE PROGRAM

``Sec.
``3801. Definitions.
``3802. General provisions.
``3803. Assignment of employees to private sector organizations.
``3804. Assignment of employees from private sector organizations.
``3805. Reporting requirement.
``3806. Regulations.
``Sec. 3801. Definitions
    ``For purposes of this chapter--
            ``(1) the term `agency'--
                    ``(A) subject to subparagraph (B), means an 
                executive agency; and
                    ``(B) does not include--
                            ``(i) the General Accounting Office;
                            ``(ii) an Office of Inspector General of an 
                        establishment or a designated Federal entity 
                        established under the Inspector General Act of 
                        1978; and
                            ``(iii) the Defense Contract Audit Agency 
                        referred to in section 2313(b) of title 10; and
            ``(2) the term `detail' means--
                    ``(A) the assignment or loan of an employee of an 
                agency to a private sector organization without a 
                change of position from the agency that employs the 
                individual, or
                    ``(B) the assignment or loan of an employee of a 
                private sector organization to an agency without a 
                change of position from the private sector organization 
                that employs the individual,
        whichever is appropriate in the context in which such term is 
        used.
``Sec. 3802. General provisions
    ``(a) Assignment Authority.--On request from or with the agreement 
of a private sector organization, and with the consent of the employee 
concerned, the head of an agency may arrange for the assignment of an 
employee of the agency to a private sector organization or an employee 
of a private sector organization to the agency. An eligible employee is 
an individual who--
            ``(1) works in the field of Federal acquisition or 
        acquisition management;
            ``(2) is considered an exceptional performer by the 
        individual's current employer; and
            ``(3) is expected to assume increased acquisition 
        management responsibilities in the future.
An employee of an agency shall be eligible to participate in this 
program only if the employee is employed at the GS-11 level or above 
(or equivalent) and is serving under a career or career-conditional 
appointment or an appointment of equivalent tenure in the excepted 
service.
    ``(b) Agreements.--Each agency that exercises its authority under 
this chapter shall provide for a written agreement between the agency 
and the employee concerned regarding the terms and conditions of the 
employee's assignment. In the case of an employee of the agency, the 
agreement shall--
            ``(1) require the employee to serve in the civil service, 
        upon completion of the assignment, for a period equal to the 
        length of the assignment; and
            ``(2) provide that, in the event the employee fails to 
        carry out the agreement (except for good and sufficient reason, 
        as determined by the head of the agency from which assigned) 
        the employee shall be liable to the United States for payment 
        of all expenses of the assignment.
An amount under paragraph (2) shall be treated as a debt due the United 
States.
    ``(c) Termination.--Assignments may be terminated by the agency or 
private sector organization concerned for any reason at any time.
    ``(d) Duration.--Assignments under this chapter shall be for a 
period of between 6 months and 1 year, and may be extended in 3-month 
increments for a total of not more than 1 additional year, except that 
no assignment under this chapter may commence after the end of the 5-
year period beginning on the date of the enactment of this chapter.
    ``(e) Assistance.--The Administrator for Federal Procurement 
Policy, by agreement with the Office of Personnel Management, may 
assist in the administration of this chapter, including by maintaining 
lists of potential candidates for assignment under this chapter, 
establishing mentoring relationships for the benefit of individuals who 
are given assignments under this chapter, and publicizing the program.
    ``(f) Considerations.--In exercising any authority under this 
chapter, an agency shall take into consideration--
            ``(1) the need to ensure that small business concerns are 
        appropriately represented with respect to the assignments 
        described in sections 3803 and 3804, respectively; and
            ``(2) how assignments described in section 3803 might best 
        be used to help meet the needs of the agency for the training 
        of employees in acquisition management.
``Sec. 3803. Assignment of employees to private sector organizations
    ``(a) In General.--An employee of an agency assigned to a private 
sector organization under this chapter is deemed, during the period of 
the assignment, to be on detail to a regular work assignment in his 
agency.
    ``(b) Coordination With Chapter 81.--Notwithstanding any other 
provision of law, an employee of an agency assigned to a private sector 
organization under this chapter is entitled to retain coverage, rights, 
and benefits under subchapter I of chapter 81, and employment during 
the assignment is deemed employment by the United States, except that, 
if the employee or the employee's dependents receive from the private 
sector organization any payment under an insurance policy for which the 
premium is wholly paid by the private sector organization, or other 
benefit of any kind on account of the same injury or death, then, the 
amount of such payment or benefit shall be credited against any 
compensation otherwise payable under subchapter I of chapter 81.
    ``(c) Reimbursements.--The assignment of an employee to a private 
sector organization under this chapter may be made with or without 
reimbursement by the private sector organization for the travel and 
transportation expenses to or from the place of assignment, subject to 
the same terms and conditions as apply with respect to an employee of a 
Federal agency or a State or local government under section 3375, and 
for the pay, or a part thereof, of the employee during assignment. Any 
reimbursements shall be credited to the appropriation of the agency 
used for paying the travel and transportation expenses or pay.
    ``(d) Tort Liability; Supervision.--The Federal Tort Claims Act and 
any other Federal tort liability statute apply to an employee of an 
agency assigned to a private sector organization under this chapter. 
The supervision of the duties of an employee of an agency so assigned 
to a private sector organization may be governed by an agreement 
between the agency and the organization.
    ``(e) Small Business Concerns.--
            ``(1) In general.--The head of each agency shall take such 
        actions as may be necessary to ensure that, of the assignments 
        made under this chapter from such agency to private sector 
        organizations in each year, at least 20 percent are to small 
        business concerns.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) the term `small business concern' means a 
                business concern that satisfies the definitions and 
                standards specified by the Administrator of the Small 
                Business Administration under section 3(a)(2) of the 
                Small Business Act (as from time to time amended by the 
                Administrator);
                    ``(B) the term `year' refers to the 12-month period 
                beginning on the date of the enactment of this chapter, 
                and each succeeding 12-month period in which any 
                assignments under this chapter may be made; and
                    ``(C) the assignments `made' in a year are those 
                commencing in such year.
            ``(3) Reporting requirement.--An agency which fails to 
        comply with paragraph (1) in a year shall, within 90 days after 
        the end of such year, submit a report to the Committees on 
        Government Reform and Small Business of the House of 
        Representatives and the Committees on Governmental Affairs and 
        Small Business of the Senate. The report shall include--
                    ``(A) the total number of assignments made under 
                this chapter from such agency to private sector 
                organizations in the year;
                    ``(B) of that total number, the number (and 
                percentage) made to small business concerns; and
                    ``(C) the reasons for the agency's noncompliance 
                with paragraph (1).
            ``(4) Exclusion.--This subsection shall not apply to an 
        agency in any year in which it makes fewer than 5 assignments 
        under this chapter to private sector organizations.
``Sec. 3804. Assignment of employees from private sector organizations
    ``(a) In General.--An employee of a private sector organization 
assigned to an agency under this chapter is deemed, during the period 
of the assignment, to be on detail to such agency.
    ``(b) Terms and Conditions.--An employee of a private sector 
organization assigned to an agency under this chapter--
            ``(1) may continue to receive pay and benefits from the 
        private sector organization from which he is assigned;
            ``(2) is deemed, notwithstanding subsection (a), to be an 
        employee of the agency for the purposes of--
                    ``(A) chapter 73;
                    ``(B) sections 201, 203, 205, 207, 208, 209, 603, 
                606, 607, 643, 654, 1905, and 1913 of title 18;
                    ``(C) sections 1343, 1344, and 1349(b) of title 31;
                    ``(D) the Federal Tort Claims Act and any other 
                Federal tort liability statute;
                    ``(E) the Ethics in Government Act of 1978;
                    ``(F) section 1043 of the Internal Revenue Code of 
                1986; and
                    ``(G) section 27 of the Office of Federal 
                Procurement Policy Act;
            ``(3) may not have access to any trade secrets or to any 
        other nonpublic information which is of commercial value to the 
        private sector organization from which he is assigned; and
            ``(4) is subject to such regulations as the President may 
        prescribe.
The supervision of an employee of a private sector organization 
assigned to an agency under this chapter may be governed by agreement 
between the agency and the private sector organization concerned. Such 
an assignment may be made with or without reimbursement by the agency 
for the pay, or a part thereof, of the employee during the period of 
assignment, or for any contribution of the private sector organization 
to employee benefit systems.
    ``(c) Coordination With Chapter 81.--An employee of a private 
sector organization assigned to an agency under this chapter who 
suffers disability or dies as a result of personal injury sustained 
while performing duties during the assignment shall be treated, for the 
purpose of subchapter I of chapter 81, as an employee as defined by 
section 8101 who had sustained the injury in the performance of duty, 
except that, if the employee or the employee's dependents receive from 
the private sector organization any payment under an insurance policy 
for which the premium is wholly paid by the private sector 
organization, or other benefit of any kind on account of the same 
injury or death, then, the amount of such payment or benefit shall be 
credited against any compensation otherwise payable under subchapter I 
of chapter 81.
    ``(d) Prohibition Against Charging Certain Costs to the Federal 
Government.--A private sector organization may not charge the Federal 
Government, as direct or indirect costs under a Federal contract, the 
costs of pay or benefits paid by the organization to an employee 
assigned to an agency under this chapter for the period of the 
assignment.
``Sec. 3805. Reporting requirement
    ``(a) In General.--The Office of Personnel Management shall, not 
later than April 30 and October 31 of each year, prepare and submit to 
the Committee on Government Reform of the House of Representatives and 
the Committee on Governmental Affairs of the Senate a semiannual report 
summarizing the operation of this chapter during the immediately 
preceding 6-month period ending on March 31 and September 30, 
respectively.
    ``(b) Content.--Each report shall include, with respect to the 6-
month period to which such report relates--
            ``(1) the total number of individuals assigned to, and the 
        total number of individuals assigned from, each agency during 
        such period;
            ``(2) a brief description of each assignment included under 
        paragraph (1), including--
                    ``(A) the name of the assigned individual, as well 
                as the private sector organization and the agency 
                (including the specific bureau or other agency 
                component) to or from which such individual was 
                assigned;
                    ``(B) the respective positions to and from which 
                the individual was assigned, including the duties and 
                responsibilities and the pay grade or level associated 
                with each; and
                    ``(C) the duration and objectives of the 
                individual's assignment; and
            ``(3) such other information as the Office considers 
        appropriate.
    ``(c) Publication.--A copy of each report submitted under 
subsection (a)--
            ``(1) shall be published in the Federal Register; and
            ``(2) shall be made publicly available on the Internet.
    ``(d) Agency Cooperation.--On request of the Office, agencies shall 
furnish such information and reports as the Office may require in order 
to carry out this section.
``Sec. 3806. Regulations
    ``The Director of the Office of Personnel Management shall 
prescribe regulations for the administration of this chapter.''.
    (b) Report.--Not later than 4 years after the date of the enactment 
of this Act, the General Accounting Office shall prepare and submit to 
the Committee on Government Reform of the House of Representatives and 
the Committee on Governmental Affairs of the Senate a report on the 
operation of chapter 38 of title 5, United States Code (as added by 
this section). Such report shall include--
            (1) an evaluation of the effectiveness of the program 
        established by such chapter; and
            (2) a recommendation as to whether such program should be 
        continued (with or without modification) or allowed to lapse.
    (c) Clerical Amendment.--The table of chapters at the beginning of 
part III of title 5, United States Code, is amended by inserting after 
the item relating to chapter 37 the following:

``38. Acquisition Professional Exchange Program.............    3801''.
    (d) Coordination With Acquisition Workforce Provisions of Office of 
Federal Procurement Policy Act.--Section 37 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 433) is amended by adding at the end 
the following new subsection:
    ``(i) Authority To Detail Employees to Non-Federal Employers.--(1) 
In carrying out the provisions of this section, the Administrator, by 
agreement with the Director of the Office of Personnel Management, may 
provide for a program under which a Federal employee may be detailed to 
a non-Federal employer. The Administrator, by agreement with the 
Director of the Office of Personnel Management, shall prescribe 
regulations for such program, including the conditions for service and 
duties as the Administrator considers necessary.
    ``(2) An assignment described in section 3803 of title 5, United 
States Code, may not be made unless a program under paragraph (1) is 
established, and the assignment is made in accordance with the 
requirements of such program.''.
    (e) Ethics Provisions.--
            (1) One-year restriction on certain communications.--
        Section 207(c)(2)(A)(v) of title 18, United States Code, is 
        amended by inserting ``or 38'' after ``chapter 37''.
            (2) Disclosure of confidential information.--Section 1905 
        of title 18, United States Code, is amended by inserting ``or 
        38'' after ``chapter 37''.
            (3) Contract advice.--Section 207(l) of title 18, United 
        States Code, is amended--
                    (A) in the subsection heading, by striking 
                ``Details.--'' and inserting ``Detailees.--''; and
                    (B) by inserting ``or 38'' after ``chapter 37''.
            (4) Restriction on disclosure of procurement information.--
        Section 27 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 423) is amended in the last sentence of subsection 
        (a)(1) by inserting ``or 38'' after ``chapter 37''.
    (f) Technical and Conforming Amendments.--
            (1) Amendments to title 5, united states code.--Title 5, 
        United States Code, is amended--
                    (A) in section 3111(d), by inserting ``or 38'' 
                after ``chapter 37''; and
                    (B) in section 7353(b)(4), by inserting ``or 38'' 
                after ``chapter 37''.
            (2) Amendment to title 18, united states code.--Section 
        209(g) of title 18, United States Code, is amended--
                    (A) in paragraph (1), by inserting ``or 38'' after 
                ``chapter 37''; and
                    (B) by amending paragraph (2) to read as follows:
    ``(2) For purposes of this subsection, the term `agency'--
            ``(A) with respect to assignments under chapter 37 of title 
        5, means an agency (as defined in section 3701 of title 5) and 
        the Office of the Chief Technology Officer of the District of 
        Columbia; and
            ``(B) with respect to assignments under chapter 38 of title 
        5, means an agency (as defined by section 3801 of title 5).''.
            (3) Eligibility for thrift savings plan.--Section 
        125(c)(1)(D) of Public Law 100-238 (101 Stat. 1757; 5 U.S.C. 
        8432 note) is amended by inserting ``or 38'' after ``chapter 
        37''.

SEC. 102. SHARE-IN-SAVINGS INITIATIVES.

    (a) Defense Contracts.--Section 2332 of title 10, United States 
Code, is amended to read as follows:
``Sec. 2332. Share-in-savings contracts
    ``(a) Authority To Enter Into Share-in-Savings Contracts.--(1) The 
head of an agency may enter into a share-in-savings contract in which 
the Government awards a contract to improve mission-related or 
administrative processes or to accelerate the achievement of its 
mission and share with the contractor in savings achieved through 
contract performance.
    ``(2)(A) Except as provided in subparagraph (B), a share-in-savings 
contract shall be awarded for a period of not more than five years.
    ``(B) A share-in-savings contract may be awarded for a period 
greater than five years, but not more than 10 years, if the head of the 
agency determines in writing prior to award of the contract that--
            ``(i) the level of risk to be assumed and the investment to 
        be undertaken by the contractor is likely to inhibit the 
        government from obtaining the needed performance competitively 
        at a fair and reasonable price if the contract is limited in 
        duration to a period of five years or less; and
            ``(ii) the performance to be acquired is likely to continue 
        for a period of time sufficient to generate reasonable benefit 
        for the government.
    ``(3) Contracts awarded pursuant to the authority of this section 
shall, to the maximum extent practicable, be performance-based 
contracts that identify objective outcomes and contain performance 
standards that will be used to measure achievement and milestones that 
must be met before payment is made.
    ``(4) Contracts awarded pursuant to the authority of this section 
shall include a provision containing a quantifiable baseline that is to 
be the basis upon which a savings share ratio is established that 
governs the amount of payment a contractor is to receive under the 
contract. Before commencement of performance of such a contract, the 
chief acquisition officer of the agency, or, in the case of an agency 
without a chief acquisition officer, the senior procurement executive, 
shall determine in writing that the terms of the provision are 
quantifiable and will likely yield value to the Government.
    ``(5)(A) The head of the agency may retain savings realized through 
the use of a share-in-savings contract under this section that are in 
excess of the total amount of savings paid to the contractor under the 
contract. Except as provided in subparagraph (B), savings shall be 
credited to the appropriation or fund against which charges were made 
to carry out the contract.
    ``(B) Amounts retained by the agency under this subsection shall--
            ``(i) without further appropriation, remain available until 
        expended; and
            ``(ii) be applied first to fund any contingent liabilities 
        associated with share-in-savings procurements that are not 
        fully funded.
    ``(b) Cancellation and Termination.--(1) If funds are not made 
available for the continuation of a share-in-savings contract entered 
into under this section in a subsequent fiscal year, the contract shall 
be canceled or terminated. The costs of cancellation or termination may 
be paid out of--
            ``(A) appropriations available for the performance of the 
        contract;
            ``(B) appropriations available for acquisition of the type 
        of property or services procured under the contract, and not 
        otherwise obligated; or
            ``(C) funds subsequently appropriated for payments of costs 
        of cancellation or termination, subject to the limitations in 
        paragraph (3).
    ``(2) The amount payable in the event of cancellation or 
termination of a share-in-savings contract shall be negotiated with the 
contractor at the time the contract is entered into.
    ``(3) The head of an agency may enter into share-in-savings 
contracts under this section in any given fiscal year even if funds are 
not made specifically available for the full costs of cancellation or 
termination of the contract if funds are available and sufficient to 
make payments with respect to the first fiscal year of the contract and 
the following conditions are met regarding the funding of cancellation 
and termination liability:
            ``(A) The amount of unfunded contingent liability for the 
        contract does not exceed the lesser of--
                    ``(i) 50 percent of the estimated costs of a 
                cancellation or termination; or
                    ``(ii) $10,000,000.
            ``(B) Unfunded contingent liability in excess of $5,000,000 
        has been approved by the Director of the Office of Management 
        and Budget or the Director's designee.
    ``(c) Definitions.--In this section:
            ``(1) The term `contractor' means a private entity that 
        enters into a contract with an agency.
            ``(2) The term `savings' means--
                    ``(A) monetary savings to an agency; or
                    ``(B) savings in time or other benefits realized by 
                the agency, including enhanced revenues.
            ``(3) The term `share-in-savings contract' means a contract 
        under which--
                    ``(A) a contractor provides solutions for--
                            ``(i) improving the agency's mission-
                        related or administrative processes; or
                            ``(ii) accelerating the achievement of 
                        agency missions; and
                    ``(B) the head of the agency pays the contractor an 
                amount equal to a portion of the savings derived by the 
                agency from--
                            ``(i) any improvements in mission-related 
                        or administrative processes that result from 
                        implementation of the solution; or
                            ``(ii) acceleration of achievement of 
                        agency missions.''.
    (b) Other Contracts.--Section 317 of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 266a) is amended to read 
as follows:

``SEC. 317. SHARE-IN-SAVINGS CONTRACTS.

    ``(a) Authority To Enter Into Share-in-Savings Contracts.--(1) The 
head of an executive agency may enter into a share-in-savings contract 
in which the Government awards a contract to improve mission-related or 
administrative processes or to accelerate the achievement of its 
mission and share with the contractor in savings achieved through 
contract performance.
    ``(2)(A) Except as provided in subparagraph (B), a share-in-savings 
contract shall be awarded for a period of not more than five years.
    ``(B) A share-in-savings contract may be awarded for a period 
greater than five years, but not more than 10 years, if the head of the 
agency determines in writing prior to award of the contract that--
            ``(i) the level of risk to be assumed and the investment to 
        be undertaken by the contractor is likely to inhibit the 
        government from obtaining the needed performance competitively 
        at a fair and reasonable price if the contract is limited in 
        duration to a period of five years or less; and
            ``(ii) the performance to be acquired is likely to continue 
        for a period of time sufficient to generate reasonable benefit 
        for the government.
    ``(3) Contracts awarded pursuant to the authority of this section 
shall, to the maximum extent practicable, be performance-based 
contracts that identify objective outcomes and contain performance 
standards that will be used to measure achievement and milestones that 
must be met before payment is made.
    ``(4) Contracts awarded pursuant to the authority of this section 
shall include a provision containing a quantifiable baseline that is to 
be the basis upon which a savings share ratio is established that 
governs the amount of payment a contractor is to receive under the 
contract. Before commencement of performance of such a contract, the 
chief acquisition officer of the agency, or, in the case of an agency 
without a chief acquisition officer, the senior procurement executive, 
shall determine in writing that the terms of the provision are 
quantifiable and will likely yield value to the Government.
    ``(5)(A) The head of the agency may retain savings realized through 
the use of a share-in-savings contract under this section that are in 
excess of the total amount of savings paid to the contractor under the 
contract. Except as provided in subparagraph (B), savings shall be 
credited to the appropriation or fund against which charges were made 
to carry out the contract.
    ``(B) Amounts retained by the agency under this subsection shall--
            ``(i) without further appropriation, remain available until 
        expended; and
            ``(ii) be applied first to fund any contingent liabilities 
        associated with share-in-savings procurements that are not 
        fully funded.
    ``(b) Cancellation and Termination.--(1) If funds are not made 
available for the continuation of a share-in-savings contract entered 
into under this section in a subsequent fiscal year, the contract shall 
be canceled or terminated. The costs of cancellation or termination may 
be paid out of--
            ``(A) appropriations available for the performance of the 
        contract;
            ``(B) appropriations available for acquisition of the type 
        of property or services procured under the contract, and not 
        otherwise obligated; or
            ``(C) funds subsequently appropriated for payments of costs 
        of cancellation or termination, subject to the limitations in 
        paragraph (3).
    ``(2) The amount payable in the event of cancellation or 
termination of a share-in-savings contract shall be negotiated with the 
contractor at the time the contract is entered into.
    ``(3) The head of an executive agency may enter into share-in-
savings contracts under this section in any given fiscal year even if 
funds are not made specifically available for the full costs of 
cancellation or termination of the contract if funds are available and 
sufficient to make payments with respect to the first fiscal year of 
the contract and the following conditions are met regarding the funding 
of cancellation and termination liability:
            ``(A) The amount of unfunded contingent liability for the 
        contract does not exceed the lesser of--
                    ``(i) 50 percent of the estimated costs of a 
                cancellation or termination; or
                    ``(ii) $10,000,000.
            ``(B) Unfunded contingent liability in excess of $5,000,000 
        has been approved by the Director of the Office of Management 
        and Budget or the Director's designee.
    ``(c) Definitions.--In this section:
            ``(1) The term `contractor' means a private entity that 
        enters into a contract with an agency.
            ``(2) The term `savings' means--
                    ``(A) monetary savings to an agency; or
                    ``(B) savings in time or other benefits realized by 
                the agency, including enhanced revenues.
            ``(3) The term `share-in-savings contract' means a contract 
        under which--
                    ``(A) a contractor provides solutions for--
                            ``(i) improving the agency's mission-
                        related or administrative processes; or
                            ``(ii) accelerating the achievement of 
                        agency missions; and
                    ``(B) the head of the agency pays the contractor an 
                amount equal to a portion of the savings derived by the 
                agency from--
                            ``(i) any improvements in mission-related 
                        or administrative processes that result from 
                        implementation of the solution; or
                            ``(ii) acceleration of achievement of 
                        agency missions.''.
    (c) Development of Incentives.--The Director of the Office of 
Management and Budget shall--
            (1) identify potential opportunities for the use of share-
        in-savings contracts;
            (2) provide guidance to executive agencies for determining 
        mutually beneficial savings share ratios and baselines from 
        which savings may be measured; and
            (3) in consultation with the Committee on Governmental 
        Affairs of the Senate, the Committee on Government Reform of 
        the House of Representatives, and executive agencies, develop 
        techniques to permit an executive agency to retain a portion of 
        the savings (after payment of the contractor's share of the 
        savings) derived from share-in-savings contracts as funds are 
        appropriated to the agency in future fiscal years.
    (d) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Federal Acquisition Regulation shall be 
revised to implement the provisions enacted by this section. Such 
revisions shall--
            (1) provide for the use of competitive procedures in the 
        selection and award of share-in-savings contracts to--
                    (A) ensure the contractor's share of savings 
                reflects the risk involved and market conditions; and
                    (B) otherwise yield best value to the government; 
                and
            (2) allow appropriate regulatory flexibility to facilitate 
        the use of share-in-savings contracts by executive agencies, 
        including the use of innovative provisions for technology 
        refreshment and nonstandard Federal Acquisition Regulation 
        contract clauses.
    (e) OMB Report to Congress.--In consultation with executive 
agencies, the Director of the Office of Management and Budget shall, 
not later than 2 years after the completion of the revisions to the 
Federal Acquisition Regulation under subsection (d), submit to Congress 
a report containing--
            (1) a description of the number of share-in-savings 
        contracts entered into by each executive agency under by this 
        section and the amendments made by this section, and, for each 
        contract identified--
                    (A) the performance acquired;
                    (B) the total amount of payments made to the 
                contractor; and
                    (C) the total amount of savings or other measurable 
                benefits realized;
            (2) a description of the ability of agencies to determine 
        the baseline costs of a project against which savings can be 
        measured; and
            (3) any recommendations, as the Director deems appropriate, 
        regarding additional changes in law that may be necessary to 
        ensure effective use of share-in-savings contracts by executive 
        agencies.
    (f) Definitions.--In this section, the terms ``contractor'', 
``savings'', and ``share-in-savings contract'' have the meanings given 
those terms in section 2332 of title 10, United States Code, and 
section 317 of the Federal Property and Administrative Services Act of 
1949 (as amended by subsections (a) and (b)).
    (g) Repeal of Superseded Provisions.--Subsections (c), (d), (e), 
(f), (g), and (i) of section 210 of the E-Government Act of 2002 
(Public Law 107-347; 116 Stat. 2936) are repealed.

SEC. 103. INFLATION ADJUSTMENT FOR ACQUISITION-RELATED DOLLAR 
              THRESHOLDS.

    (a) Requirement for Adjustment.--The Office of Federal Procurement 
Policy Act (41 U.S.C. 403 et seq.) is amended by adding at the end the 
following new section:

``SEC. 42. INFLATION ADJUSTMENT FOR ACQUISITION-RELATED DOLLAR 
              THRESHOLDS.

    ``(a) Requirement for Adjustment.--In each year that is divisible 
by 5, the Federal Acquisition Regulatory Council (established under 
section 25) shall adjust each dollar threshold set out in an 
acquisition statute to the amount that is equal to the October 1, 2000 
constant dollar value for that threshold, as determined on the basis of 
the Consumer Price Index for October of the year in which adjusted.
    ``(b) Rounding of Adjusted Amounts.--In the application of a 
percentage adjustment to the amount of a dollar threshold under 
subsection (a), the calculated amount shall be rounded as follows:
            ``(1) In the case of a dollar threshold that is less than 
        $10,000 before the adjustment, to the nearest $500.
            ``(2) In the case of a dollar threshold that is less than 
        $100,000 but not less than $10,000 before the adjustment, to 
        the nearest $5,000.
            ``(3) In the case of a dollar threshold that is less than 
        $1,000,000 but not less than $100,000 before the adjustment, to 
        the nearest $50,000.
            ``(4) In the case of a dollar threshold that is $1,000,000 
        or more before the adjustment, to the nearest $500,000.
    ``(c) Publication.--The Federal Acquisition Regulatory Council 
shall publish each adjusted dollar threshold under this section in the 
Federal Register.
    ``(d) Effective Date of Adjustment.--An adjusted dollar threshold 
under this section shall have the force and effect of law beginning on 
the date of the publication of the threshold in the Federal Register 
under subsection (c).
    ``(e) Definitions.--In this section:
            ``(1) The term `acquisition statute' means any provision of 
        a statute, including a definition, that governs the 
        applicability of any policy, procedure, requirement, 
        restriction, or condition to the acquisition of goods or 
        services by executive agencies.
            ``(2) The term `Consumer Price Index' means the Consumer 
        Price Index for all-urban consumers published monthly by the 
        Department of Labor.''.
    (b) Clerical Amendment.--The table of sections in section 1(b) of 
such Act is amended by adding at the end the following new item:

``Sec. 42. Inflation adjustment for acquisition-related dollar 
                            thresholds.''.

SEC. 104. AGENCY ACQUISITION PROTESTS.

    (a) Defense Contracts.--(1) Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2305a the following new 
section:
``Sec. 2305b. Protests
    ``(a) In General.--An interested party may protest an acquisition 
of supplies or services by an agency based on an alleged violation of 
an acquisition law or regulation, and a decision regarding such alleged 
violation shall be made by the agency in accordance with this section.
    ``(b) Restriction on Contract Award Pending.--(1) Except as 
provided in paragraph (2), a contract may not be awarded by an agency 
after a protest concerning the acquisition has been submitted under 
this section and while the protest is pending.
    ``(2) The head of the acquisition activity responsible for the 
award of the contract may authorize the award of a contract, 
notwithstanding a pending protest under this section, upon making a 
written finding that urgent and compelling circumstances do not allow 
for waiting for a decision on the protest.
    ``(c) Restriction on Contract Performance Pending Decision.--(1) 
Except as provided in paragraph (2), performance of a contract may not 
be authorized (and performance of the contract shall cease if 
performance has already begun) in any case in which a protest of the 
contract award is submitted under this section before the later of--
            ``(A) the date that is 10 days after the date of contract 
        award; or
            ``(B) the date that is five days after an agency debriefing 
        date offered to an unsuccessful offeror for any debriefing that 
        is requested and, when requested, is required, under section 
        2305(b)(5) of this title.
    ``(2) The head of the acquisition activity responsible for the 
award of a contract may authorize performance of the contract 
notwithstanding a pending protest under this section upon making a 
written finding that urgent and compelling circumstances do not allow 
for waiting for a decision on the protest.
    ``(d) Deadline for Decision.--The head of an agency shall issue a 
decision on a protest under this section not later than the date that 
is 20 working days after the date on which the protest is submitted to 
such head of an agency.
    ``(e) Judicial Review.--A decision on a protest under this section 
is not subject to judicial review.
    ``(f) Construction.--Nothing in this section shall affect the right 
of an interested party to file a protest with the Comptroller General 
under subchapter V of chapter 35 of title 31. An interested party who 
has filed a protest under this section with respect to an acquisition 
may not file an action with respect to that acquisition in the United 
States Court of Federal Claims while the protest is pending.
    ``(g) Definitions.--In this section, the terms `protest' and 
`interested party' have the meanings given such terms in section 3551 
of title 31.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2305a the 
following new item:

``2305b. Protests.''.
    (b) Other Agencies.--Title III of the Federal Property and 
Administrative Services Act of 1949 is amended by inserting after 
section 303M (41 U.S.C. 253m) the following new section:

``SEC. 303N. PROTESTS.

    ``(a) In General.--An interested party may protest an acquisition 
of supplies or services by an executive agency based on an alleged 
violation of an acquisition law or regulation, and a decision regarding 
such alleged violation shall be made by the agency in accordance with 
this section.
    ``(b) Restriction on Contract Award Pending Decision.--(1) Except 
as provided in paragraph (2), a contract may not be awarded by an 
agency after a protest concerning the acquisition has been submitted 
under this section and while the protest is pending.
    ``(2) The head of the acquisition activity responsible for the 
award of a contract may authorize the award of the contract, 
notwithstanding a pending protest under this section, upon making a 
written finding that urgent and compelling circumstances do not allow 
for waiting for a decision on the protest.
    ``(c) Restriction on Contract Performance Pending Decision.--(1) 
Except as provided in paragraph (2), performance of a contract may not 
be authorized (and performance of the contract shall cease if 
performance has already begun) in any case in which a protest of the 
contract award is submitted under this section before the later of--
            ``(A) the date that is 10 days after the date of contract 
        award; or
            ``(B) the date that is five days after an agency debriefing 
        date offered to an unsuccessful offeror for any debriefing that 
        is requested and, when requested, is required, under section 
        303B(e) of this title.
    ``(2) The head of the acquisition activity responsible for the 
award of a contract may authorize performance of the contract 
notwithstanding a pending protest under this section upon making a 
written finding that urgent and compelling circumstances do not allow 
for waiting for a decision on the protest.
    ``(d) Deadline for Decision.--The head of an executive agency shall 
issue a decision on a protest under this section not later than the 
date that is 20 working days after the date on which the protest is 
submitted to the executive agency.
    ``(e) Judicial Review.--A decision on a protest under this section 
shall not be subject to judicial review.
    ``(f) Construction.--Nothing in this section shall affect the right 
of an interested party to file a protest with the Comptroller General 
under subchapter V of chapter 35 of title 31, United States Code. An 
interested party who has filed a protest under this section with 
respect to an acquisition may not file an action with respect to that 
acquisition in the United States Court of Federal Claims while the 
protest is pending.
    ``(g) Definitions.--In this section, the terms `protest' and 
`interested party' have the meanings given such terms in section 3551 
of title 31, United States Code.''.
    (c) Conforming Amendment.--Section 3553(d)(4) of title 31, United 
States Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(C) in the case of a protest of the same matter regarding 
        such contract that is submitted under section 2305b of title 10 
        or section 303N of the Federal Property and Administrative 
        Services Act of 1949, the date that is 5 days after the date on 
        which a decision on that protest is issued.''.

SEC. 105. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION 
              PROCEDURES.

    Section 4202(e) of the Clinger-Cohen Act (division D of Public Law 
104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by striking 
``January 1, 2006'' and inserting ``January 1, 2009''.

SEC. 106. REDUNDANCY IN PROCUREMENT OF TELECOMMUNICATIONS SERVICES.

    (a) Regulations Required.--Not later than 180 days after the date 
of the enactment of this Act, the Federal Acquisition Regulation shall 
be revised to require an executive agency, in the procurement of 
telecommunications services (including information services) to 
provide, to the maximum extent practicable, that such services include 
(1) redundant and physically separate points of entry; and (2) 
physically diverse local network facilities.
    (b) Definitions.--In this section:
            (1) The terms ``telecommunications service'' and 
        ``information service'' have the meanings provided in section 3 
        of the Communications Act of 1934 (47 U.S.C. 153).
            (2) The term ``executive agency'' has the meaning provided 
        in section 4 of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403).
            (3) The term ``Federal Acquisition Regulation'' means the 
        single Government-wide procurement regulation issued in 
        accordance with sections 6 and 25 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 405, 421).

                 TITLE II--CONTRACT DISPUTE ENHANCEMENT

                     Subtitle A--General Provisions

SEC. 211. DEFINITIONS.

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

                     ``TITLE II--DISPUTE RESOLUTION

                    ``Subtitle A--General Provisions

``SEC. 201. DEFINITIONS.

    ``In this title:
            ``(1) The term `Defense Board' means the Department of 
        Defense Board of Contract Appeals established pursuant to 
        section 8(a)(1) of the Contract Disputes Act of 1978 (41 U.S.C. 
        607).
            ``(2) The term `Civilian Board' means the Civilian Board of 
        Contract Appeals established pursuant to section 8(b)(1) of the 
        Contract Disputes Act of 1978 (41 U.S.C. 607).
            ``(3) The term `Board judge' means a member of the Defense 
        Board or the Civilian Board, as the case may be.
            ``(4) The term `Chairman' means the Chairman of the Defense 
        Board or the Civilian Board, as the case may be.
            ``(5) The term `Board concerned' means--
                    ``(A) the Defense Board with respect to matters 
                within its jurisdiction; and
                    ``(B) the Civilian Board with respect to matters 
                within its jurisdiction.
            ``(6) The term `executive agency'--
                    ``(A) with respect to contract disputes under the 
                jurisdiction of the Defense Board, means the Department 
                of Defense, the Department of the Army, the Department 
                of the Navy, the Department of the Air Force, or the 
                National Aeronautics and Space Administration; and
                    ``(B) with respect to contract disputes under the 
                jurisdiction of the Civilian Board, has the meaning 
                given by section 4(1) of this Act except that the term 
                does not include the Department of Defense, the 
                Department of the Army, the Department of the Navy, the 
                Department of the Air Force, the National Aeronautics 
                and Space Administration, and the Tennessee Valley 
                Authority.''.
    (b) Conforming Amendments.--The Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.) is further amended--
            (1) by inserting the following before section 1:

           ``TITLE I--FEDERAL PROCUREMENT POLICY GENERALLY'';

        and
            (2) in section 4, by striking out ``As used in this Act:'' 
        and inserting in lieu thereof ``Except as otherwise 
        specifically provided, as used in this Act:''.

 Subtitle B--Establishment of Civilian and Defense Boards of Contract 
                                Appeals

SEC. 221. ESTABLISHMENT.

    (a) Defense Board.--Subsection (a)(1) of section 8 of the Contract 
Disputes Act of 1978 (41 U.S.C. 607) is amended to read as follows:
    ``(a)(1) There is established in the Department of Defense a board 
of contract appeals to be known as the Department of Defense Board of 
Contract Appeals.''.
    (b) Civilian Board.--Subsection (b)(1) of section 8 of the Contract 
Disputes Act of 1978 (41 U.S.C. 607) is amended to read as follows:
    ``(b)(1) There is established in the General Services 
Administration a board of contract appeals to be known as the Civilian 
Board of Contract Appeals.''.

SEC. 222. MEMBERSHIP.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 211, is further amended by adding at the 
end the following:

``SEC. 202. MEMBERSHIP.

    ``(a) Appointment.--(1)(A) The Defense Board shall consist of 
judges appointed by the Secretary of Defense from a register of 
applicants maintained by the Defense Board, in accordance with rules 
issued by the Defense Board for establishing and maintaining a register 
of eligible applicants and selecting Defense Board judges. The 
Secretary shall appoint a judge without regard to political affiliation 
and solely on the basis of the professional qualifications required to 
perform the duties and responsibilities of a Defense Board judge.
    ``(B) The Civilian Board shall consist of judges appointed by the 
Administrator for Federal Procurement Policy from a register of 
applicants maintained by the Administrator, in accordance with rules 
issued by the Administrator for establishing and maintaining a register 
of eligible applicants and selecting Civilian Board judges. The 
Administrator shall appoint a judge without regard to political 
affiliation and solely on the basis of the professional qualifications 
required to perform the duties and responsibilities of a Civilian Board 
judge.
    ``(2) The members of the Defense Board and the Civilian Board shall 
be selected and appointed to serve in the same manner as administrative 
law judges appointed pursuant to section 3105 of title 5, United States 
Code, with an additional requirement that such members shall have had 
not fewer than five years of experience in public contract law.
    ``(3) Notwithstanding paragraph (2) and subject to subsection (b), 
the following persons shall serve as Board judges:
            ``(A) For the Defense Board, any full-time member of the 
        Armed Services Board of Contract Appeals serving as such on the 
        day before the effective date of this title.
            ``(B) For the Civilian Board, any full-time member of any 
        agency board of contract appeals other than the Armed Services 
        Board of Contract Appeals, the Postal Service Board of Contract 
        Appeals, and the board of contract appeals of the Tennessee 
        Valley Authority serving as such on the day before the 
        effective date of this title.
    ``(b) Removal.--Members of the Defense Board and the Civilian Board 
shall be subject to removal in the same manner as administrative law 
judges, as provided in section 7521 of title 5, United States Code.
    ``(c) Compensation.--Compensation for the Chairman of the Defense 
Board and the Chairman of the Civilian Board and all other members of 
each Board shall be determined under section 5372a of title 5, United 
States Code.''.

SEC. 223. CHAIRMEN.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 222, is further amended by adding at the 
end the following:

``SEC. 203. CHAIRMEN.

    ``(a) Designation.--(1)(A) The Chairman of the Defense Board shall 
be designated by the Secretary of Defense to serve for a term of five 
years. The Secretary shall select the Chairman from among sitting 
judges each of whom has had at least five years of service as a member 
of the Armed Services Board of Contract Appeals.
    ``(B) The Chairman of the Civilian Board shall be designated by the 
Administrator for Federal Procurement Policy to serve for a term of 
five years. The Administrator shall select the Chairman from among 
sitting judges each of whom has had at least five years of service as a 
member of an agency board of contract appeals other than the Armed 
Services Board of Contract Appeals.
    ``(2) A Chairman of a Board may continue to serve after the 
expiration of the Chairman's term until a successor has taken office. A 
Chairman may be reappointed any number of times.
    ``(b) Responsibilities.--The Chairman of the Defense Board or the 
Civilian Board, as the case may be, shall be responsible on behalf of 
the Board for the executive and administrative operation of the Board, 
including functions of the Board with respect to the following:
            ``(1) The selection, appointment, and fixing of the 
        compensation of such personnel, pursuant to part III of title 
        5, United States Code, as the Chairman considers necessary or 
        appropriate, including a Clerk of the Board, a General Counsel, 
        and clerical and legal assistance for Board judges.
            ``(2) The supervision of personnel employed by or assigned 
        to the Board, and the distribution of work among such 
        personnel.
            ``(3) The operation of an Office of the Clerk of the Board, 
        including the receipt of all filings made with the Board, the 
        assignment of cases, and the maintenance of all records of the 
        Board.
            ``(4) The prescription of such rules and regulations as the 
        Chairman considers necessary or appropriate for the 
        administration and management of the Board.
    ``(c) Vice Chairmen.--The Chairman of the Defense Board or the 
Civilian Board, as the case may be, may designate up to two other Board 
judges as Vice Chairmen. The Vice Chairmen, in the order designated by 
the Chairman, shall act in the place and stead of the Chairman during 
the absence of the Chairman.''.

SEC. 224. RULEMAKING AUTHORITY.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 223, is further amended by adding at the 
end the following:

``SEC. 204. RULEMAKING AUTHORITY.

    ``Except as provided by section 252 of the Acquisition System 
Improvement Act, the Chairman of the Defense Board and the Chairman of 
the Civilian Board, in consultation with the Administrator for Federal 
Procurement Policy, shall jointly issue and maintain--
            ``(1) such procedural rules and regulations as are 
        necessary to the exercise of the functions of the Boards under 
        section 211; and
            ``(2) statements of policy of general applicability with 
        respect to such functions.''.

SEC. 225. AUTHORIZATION OF APPROPRIATIONS.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 224, is further amended by adding at the 
end the following:

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for fiscal year 2005 and 
each succeeding fiscal year such sums as may be necessary to carry out 
the provisions of this title. Funds for the activities of each Board 
shall be separately appropriated for such purpose. Funds appropriate 
pursuant to this section shall remain available until expended.''.

   Subtitle C--Functions of Defense and Civilian Boards of Contract 
                                Appeals

SEC. 231. CONTRACT DISPUTES.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 225, is further amended by adding at the 
end the following:

``Subtitle B--Functions of the Defense and Civilian Boards of Contract 
                                Appeals

``SEC. 211. CONTRACT DISPUTES.

    ``The Defense Board shall have jurisdiction as provided by section 
8(a)(1) of the Contract Disputes Act of 1978 (41 U.S.C. 607(a)). The 
Civilian Board shall have jurisdiction as provided by section 8(b)(1) 
of such Act (41 U.S.C. 607(b)).''.

SEC. 232. ENHANCED ACCESS FOR SMALL BUSINESS.

    Section 9(a) of the Contract Disputes Act of 1978 (41 U.S.C. 608) 
is amended by striking out the period at the end of the first sentence 
and inserting the following: ``or, in the case of a small business 
concern (as defined in the Small Business Act and regulations under 
that Act), $150,000 or less.''.

SEC. 233. APPLICABILITY TO CERTAIN CONTRACTS.

    The Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.), as amended by section 231, is further amended by adding at the 
end the following:

``SEC. 212. APPLICABILITY TO CERTAIN CONTRACTS.

    ``(a) Contracts at or Below the Simplified Acquisition Threshold.--
Notwithstanding section 33 of this Act, the authority conferred on the 
Defense Board and the Civilian Board by this title is applicable to 
contracts in amounts not greater than the simplified acquisition 
threshold.
    ``(b) Contracts for Commercial Items.--Notwithstanding section 34 
of this Act, the authority conferred on the Defense Board and the 
Civilian Board by this title is applicable to contracts for the 
procurement of commercial items.''.

     Subtitle D--Transfers and Transition, Savings, and Conforming 
                               Provisions

SEC. 241. TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL.

    (a) Transfers.--
            (1) Armed services board of contract appeals.--The 
        personnel employed in connection with, and the assets, 
        liabilities, contracts, property, records, and unexpended 
        balance of appropriations, authorizations, allocations, and 
        other funds employed, held, used, arising from, available to, 
        or to be made available in connection with the functions vested 
        by law in the Armed Services Board of Contract Appeals 
        established pursuant to section 8 of the Contract Disputes Act 
        of 1978 (41 U.S.C. 607) (as in effect on the day before the 
        effective date described in section 251), shall be transferred 
        to the Department of Defense Board of Contract Appeals for 
        appropriate allocation by the Chairman of that Board.
            (2) Other boards of contracts appeals.--The personnel 
        employed in connection with, and the assets, liabilities, 
        contracts, property, records, and unexpended balance of 
        appropriations, authorizations, allocations, and other funds 
        employed, held, used, arising from, available to, or to be made 
        available in connection with the functions vested by law in the 
        boards of contract appeals established pursuant to section 8 of 
        the Contract Disputes Act of 1978 (41 U.S.C. 607) (as in effect 
        on the day before the effective date described in section 251) 
        other than the Armed Services Board of Contract Appeals, the 
        board of contract appeals of the Tennessee Valley Authority, 
        and the Postal Service Board of Contract Appeals shall be 
        transferred to the Civilian Board of Contract Appeals for 
        appropriate allocation by the Chairman of that Board.
    (b) Effect on Personnel.--Personnel transferred pursuant to this 
subtitle shall not be separated or reduced in compensation for one year 
after such transfer, except for cause.
    (c) Regulations.--(1) The Department of Defense Board of Contract 
Appeals and the Civilian Board of Contract Appeals shall each prescribe 
regulations for the release of competing employees in a reduction in 
force that gives due effect to--
            (A) efficiency or performance ratings;
            (B) military preference; and
            (C) tenure of employment.
    (2) In prescribing the regulations, the Board concerned shall 
provide for military preference in the same manner as set forth in 
subchapter I of chapter 35 of title 5, United States Code.

SEC. 242. TERMINATIONS AND SAVINGS PROVISIONS.

    (a) Termination of Boards of Contract Appeals.--Effective on the 
effective date described in section 251, the boards of contract appeals 
established pursuant to section 8 of the Contract Disputes Act of 1978 
(41 U.S.C. 607) (as in effect on the day before such effective date), 
other than the board of contract appeals of the Tennessee Valley 
Authority and the Postal Service Board of Contract Appeals, shall 
terminate.
    (b) Savings Provision for Contract Dispute Matters Pending Before 
Boards.--(1) This title and the amendments made by this title shall not 
affect any proceedings pending on the effective date described in 
section 251 before any board of contract appeals terminated by 
subsection (a).
    (2) In the case of any such proceedings pending before the Armed 
Services Board of Contract Appeals, the proceedings shall be continued 
by the Department of Defense Board of Contract Appeals, and orders 
which were issued in any such proceeding by the Armed Services Board of 
Contract Appeals shall continue in effect until modified, terminated, 
superseded, or revoked by the Department of Defense Board of Contract 
Appeals, by a court of competent jurisdiction, or by operation of law.
    (3) In the case of any such proceedings pending before an agency 
board of contract appeals other than the Armed Services Board of 
Contract Appeals or the board of contract appeals of the Tennessee 
Valley Authority, the proceedings shall be continued by the Civilian 
Board of Contract Appeals, and orders which were issued in any such 
proceeding by the agency board shall continue in effect until modified, 
terminated, superseded, or revoked by the Civilian Board of Contract 
Appeals, by a court of competent jurisdiction, or by operation of law.

SEC. 243. CONTRACT DISPUTES AUTHORITY OF BOARDS.

    (a) Section 2 of the Contract Disputes Act of 1978 (41 U.S.C. 601) 
is amended--
            (1) in paragraph (2), by striking out ``, the United States 
        Postal Service, and the Postal Rate Commission'';
            (2) by redesignating paragraph (7) as paragraph (9);
            (3) by amending paragraph (6) to read as follows:
            ``(6) the terms `agency board' or `agency board of contract 
        appeals' mean--
                    ``(1) the Department of Defense Board of Contract 
                Appeals established under section 8(a)(1) of this Act;
                    ``(2) the Civilian Board of Contract Appeals 
                established under section 8(b)(1) of this Act;
                    ``(3) the board of contract appeals of the 
                Tennessee Valley Authority; or
                    ``(4) the Postal Service Board of Contract Appeals 
                established under section 8(h) of this Act;''; and
            (4) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) the term `Defense Board' means the Department of 
        Defense Board of Contract Appeals established under section 
        8(a)(1) of this Act;
            ``(8) the term `Civilian Board' means the Civilian Board of 
        Contract Appeals established under section 8(b)(1) of this Act; 
        and''.
    (b) Section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607), 
as amended by section 221, is further amended--
            (1) by striking out subsection (c);
            (2) in subsection (d)--
                    (A) by striking out the first sentence and 
                inserting in lieu thereof the following: ``The Defense 
                Board shall have jurisdiction to decide any appeal from 
                a decision of a contracting officer of the Department 
                of Defense, the Department of the Army, the Department 
                of the Navy, the Department of the Air Force, or the 
                National Aeronautics and Space Administration relative 
                to a contract made by that department or agency. The 
                Civilian Board shall have jurisdiction to decide any 
                appeal from a decision of a contracting officer of any 
                executive agency (other than the Department of Defense, 
                the Department of the Army, the Department of the Navy, 
                the Department of the Air Force, the National 
                Aeronautics and Space Administration, the United States 
                Postal Service, the Postal Rate Commission, or the 
                Tennessee Valley Authority) relative to a contract made 
                by that agency. Each other agency board shall have 
                jurisdiction to decide any appeal from a decision of a 
                contracting officer relative to a contract made by its 
                agency.''; and
                    (B) in the second sentence, by striking out 
                ``Claims Court'' and inserting in lieu thereof ``Court 
                of Federal Claims'';
            (3) by striking out subsection (h) and inserting in lieu 
        thereof the following:
    ``(h) There is established an agency board of contract appeals to 
be known as the `Postal Service Board of Contract Appeals'. Such board 
shall have jurisdiction to decide any appeal from a decision of a 
contracting officer of the United States Postal Service or the Postal 
Rate Commission relative to a contract made by either agency. Such 
board shall consist of judges appointed by the Postmaster General who 
shall meet the qualifications of and serve in the same manner as judges 
of the Civilian Board of Contract Appeals. This Act and title II of the 
Office of Federal Procurement Policy Act shall apply to contract 
disputes before the Postal Service Board of Contract Appeals in the 
same manner as they apply to contract disputes before the Civilian 
Board.''; and
            (4) by striking out subsection (i).

SEC. 244. REFERENCES TO AGENCY BOARDS OF CONTRACT APPEALS.

    (a) Defense Board.--Any reference to the Armed Services Board of 
Contract Appeals in any provision of law or in any rule, regulation, or 
other paper of the United States shall be treated as referring to the 
Department of Defense Board of Contract Appeals.
    (b) Civilian Board.--Any reference to an agency board of contract 
appeals other than the Armed Services Board of Contract Appeals, the 
board of contract appeals of the Tennessee Valley Authority, or the 
Postal Service Board of Contract Appeals in any provision of law or in 
any rule, regulation, or other paper of the United States shall be 
treated as referring to the Civilian Board of Contract Appeals.

SEC. 245. CONFORMING AMENDMENTS.

    (a) Title 5.--Section 5372a(a)(1) of title 5, United States Code, 
is amended by inserting after ``of 1978'' the following: ``or a member 
of the Department of Defense Board of Contract Appeals or the Civilian 
Board of Contract Appeals appointed under section 202 of the Office of 
Federal Procurement Policy Act''.
    (b) Office of Federal Procurement Policy Act.--The table of 
contents for the Office of Federal Procurement Policy Act (contained in 
section 1(b)) is amended--
            (1) by inserting the following before the item relating to 
        section 1:

           ``TITLE I--FEDERAL PROCUREMENT POLICY GENERALLY'';

            and
            (2) by adding at the end the following:

                     ``TITLE II--DISPUTE RESOLUTION

                    ``Subtitle A--General Provisions

``201. Definitions.
``202. Membership.
``203. Chairmen.
``204. Rulemaking authority.
``205. Authorization of appropriations.
``Subtitle B--Functions of the Defense and Civilian Boards of Contract 
                                Appeals

``211. Contract disputes.
``212. Applicability to certain contracts.''.

  Subtitle E--Effective Date; Regulations and Appointment of Chairmen

SEC. 251. EFFECTIVE DATE.

    Title II of the Office of Federal Procurement Policy Act, as added 
by this title, and the amendments and repeals made by this title shall 
take effect 1 year after the date of the enactment of this Act.

SEC. 252. REGULATIONS.

    (a) Regulations Regarding Claims.--Not later than 1 year after the 
date of the enactment of this Act, the Chairman of the Armed Services 
Board of Contract Appeals and the Chairman of the General Services 
Board of Contract Appeals, in consultation with the Administrator for 
Federal Procurement Policy, shall jointly issue--
            (1) such procedural rules and regulations as are necessary 
        to the exercise of the functions of the Department of Defense 
        Board of Contract Appeals and the Civilian Board of Contract 
        Appeals under sections 211 of the Office of Federal Procurement 
        Policy Act (as added by this title); and
            (2) statements of policy of general applicability with 
        respect to such functions.
    (b) Regulations Regarding Appointment of Judges.--Not later than 1 
year after the date of the enactment of this Act--
            (1) the Chairman of the Armed Services Board of Contract 
        Appeals shall issue rules governing the establishment and 
        maintenance of a register of eligible applicants and the 
        selection of judges for the Department of Defense Board of 
        Contract Appeals; and
            (2) the Administrator for Federal Procurement Policy shall 
        issue rules governing the establishment and maintenance of a 
        register of eligible applicants and the selection of judges for 
        the Civilian Board of Contract Appeals.

SEC. 253. APPOINTMENT OF CHAIRMEN OF DEFENSE BOARD AND CIVILIAN BOARD.

    Notwithstanding section 251, not later than 1 year after the date 
of the enactment of this Act--
            (1) the Secretary of Defense shall appoint the Chairman of 
        the Department of Defense Board of Contract Appeals; and
            (2) the Administrator for Federal Procurement Policy shall 
        appoint the Chairman of the Civilian Board of Contract Appeals.
                                 <all>
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