(1) by striking ‘‘unless—’’ and all that follows 
in subparagraph (A) through ‘‘at least’’ and insert-
ing ‘‘unless there is at least’’; 
(2) by striking ‘‘; or’’ and inserting a period; 
and 
(3) by striking the following: 
‘‘(B) no nontraditional defense contractor 
is participating to a significant extent in the 
prototype project, but at least one of the fol-
lowing circumstances exists: 
‘‘(i) At least one third of the total cost 
of the prototype project is to be paid out 
of funds provided by parties to the trans-
action other than the Federal Government. 
‘‘(ii) The senior procurement executive 
for the agency (as designated for the pur-
poses of section 16(3) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 
414(3)) determines in writing that excep-
tional circumstances justify the use of a 
transaction that provides for innovative 
business arrangements or structures that 
would not be feasible or appropriate under 
a contract.’’. 
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SEC. 303. PREVENTING ABUSE OF INTERAGENCY CON-
TRACTS. 
(a) OFFICE OF MANAGEMENT AND BUDGET POLICY 
GUIDANCE.— 
(1) REPORT AND GUIDELINES.—Not later than 
one year after the date of the enactment of this Act, 
the Director of the Office of Management and Budg-
et shall— 
(A) submit to Congress a comprehensive 
report on interagency acquisitions, including 
their frequency of use, management controls, 
cost-effectiveness, and savings generated; and 
(B) issue guidelines to assist the heads of 
executive agencies in improving the manage-
ment of interagency acquisitions. 
(2) MATTERS COVERED BY GUIDELINES.—For 
purposes of paragraph (1)(B), the Director shall in-
clude guidelines on the following matters: 
(A) Procedures for the use of interagency 
acquisitions to maximize competition, deliver 
best value to executive agencies, and minimize 
waste, fraud, and abuse. 
(B) Categories of contracting inappropriate 
for interagency acquisition, due to high risk of 
waste, fraud, or abuse. 
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(C) Requirements for training acquisition 
workforce personnel in the proper use of inter-
agency acquisitions. 
(b) REGULATIONS REQUIRED.—Not later than one 
year after the date of the enactment of this Act, the Fed-
eral Acquisition Regulation shall be revised to require that 
all interagency acquisitions— 
(1) include a written agreement between the re-
questing agency and the servicing agency assigning 
responsibility for the administration and manage-
ment of the contract; 
(2) include a determination that an interagency 
acquisition is the best procurement alternative; and 
(3) include sufficient documentation to ensure 
an adequate audit. 
(c) AGENCY REPORTING REQUIREMENT.—The senior 
procurement executive for each executive agency shall, as 
directed by the Director of the Office of Management and 
Budget, submit to the Director annual reports on the ac-
tions taken by the executive agency pursuant to the guide-
lines issued under subsection (a). 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing given such term in section 4(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(1)). 
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