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(c) CONSIDERATION.—The Chief Information Officers
Council shall consider national security systems for advice
or coordination only with the consent of the affected agency.
(d) CONSULTATION.—The Chief Information Officers
Council shall consult with the Public Printer appointed
under section 301 of title 44, United States Code, regarding
implementation of section 4819 of this division.
Subtitle E—Interagency Functional
Groups
SEC. 4151. ESTABLISHMENT.
(a) IN GENERAL.—The President may direct the estab-
lishment of one or more interagency groups to advise the
Director and the agencies, known as ‘‘functional groups’’—
(1) to examine areas including telecommuni-
cations, software engineering, common administrative
and programmatic applications, computer security,
and information policy, that would benefit from a
Governmentwide or multi-agency perspective;
(2) to submit to the Chief Information Officers
Council proposed solutions for problems in specific
common operational areas;
(3) to promote cooperation among agencies on
information technology matters;
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(4) to review and make recommendations to the
Director and the agencies concerned regarding major
or high risk information technology acquisitions; and
(5) to otherwise improve the efficiency of infor-
mation technology to support agency missions.
(b) TEMPORARY SPECIAL ADVISORY GROUPS.—The
Director of the Office of Management and Budget is author-
ized to establish temporary special advisory groups to the
functional groups, composed of experts from industry, aca-
demia and the Federal Government, to review Government-
wide information technology programs, major or high-risk
information technology acquisitions, and issues of informa-
tion technology policy.
SEC. 4152. SPECIFIC FUNCTIONS.
(a) The functions of an interagency functional group
are as follows:
(1) To identify common goals and requirements
for common agency programs.
(2) To develop a coordinated approach to meet-
ing agency requirements, including coordinated budg-
et estimates and procurement programs.
(3) To identify opportunities to share informa-
tion for improving the quality of the performance of
agency functions, for reducing the cost of agency pro-
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grams, and for reducing burdens of agency activities
on the public.
(4) To coordinate activities and the sharing of
information with other functional groups.
(5) To make recommendations to the heads of ex-
ecutive agencies and to the Director of the Office of
Management and Budget regarding the selection of
protocols and other standards for information tech-
nology, including security standards.
(6) To support interoperability among informa-
tion systems.
(7) To perform other functions, related to the
purposes set forth in section 4151(a), that are as-
signed by the chief Information Officers Council.
(b) Interagency functional groups may perform these
functions with respect to national security systems only
with the consent of the affected agency.
Subtitle F—Other Responsibilities
SEC. 4161. RESPONSIBILITIES UNDER THE COMPUTER SE-
CURITY ACT OF 1987.
(a) IN GENERAL.—(1) The Secretary of Commerce
shall, on the basis of standards and guidelines developed
by the National Institute of Standards and technology pur-
suant to section 20(a) (2) and (3) of the National Bureau
of Standards Act, promulgate standards and guidelines per-
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taining to Federal computer systems, making such stand-
ards compulsory and binding to the extent to which the Sec-
retary determines necessary to improve the efficiency of op-
eration or security and privacy of Federal computer sys-
tems. The President may disapprove or modify such stand-
ards and guidelines if he determines such action to be in
the public interest. The President’s authority to disapprove
or modify such standards and guidelines may not be dele-
gated. Notice of such disapproval or modification shall be
submitted promptly to the Committee on Government Re-
form and Oversight of the House of Representatives and the
Committee on Governmental Affairs of the Senate and shall
be published promptly in the Federal Register. Upon receiv-
ing notice of such disapproval or modification, the Sec-
retary of Commerce shall immediately rescind or modify
such standards or guidelines as directed by the President.
(2) The head of a Federal agency may employ stand-
ards for the cost effective security and privacy of sensitive
information in a Federal computer system within or under
the supervision of that agency that are more stringent than
the standards promulgated by the Secretary of Commerce,
if such standards contain, at a minimum, the provisions
of those applicable standards made compulsory and binding
by the Secretary of Commerce.
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(3) The standards determined to be compulsory and
binding may be waived by the Secretary of Commerce in
writing upon a determination that compliance would ad-
versely affect the accomplishment of the mission of an oper-
ator of a Federal computer system, or cause a major adverse
financial impact on the operator which is not offset by Gov-
ernmentwide savings. The Secretary may delegate to the
head of one or more Federal agencies authority to waive
such standards to the extent to which the Secretary deter-
mines such action to be necessary and desirable to allow
for timely and effective implementation of Federal computer
system standards. The head of such agency may redelegate
such authority only to a Chief Information Officer des-
ignated pursuant to section 3506 of title 44, United States
Code. Notice of each such waiver and delegation shall be
transmitted promptly to the Committee on Government Re-
form and Oversight of the House of Representatives and the
Committee on Governmental Affairs of the Senate and shall
be published promptly in the Federal Register.
(4) As used in this section, the terms ‘‘Federal com-
puter system’’ and ‘‘operator of a Federal computer system’’
have the meanings given in section 20(d) of the National
Bureau of Standards Act.
(b) EXERCISE OF AUTHORITY.—The authority con-
ferred upon the Secretary by this section shall be exercised
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subject to direction by the President and in coordination
with the Director of the Office of Management and Budget
to ensure fiscal and policy consistency.
(c) TECHNICAL AND CONFORMING AMENDMENT.—Sub-
sections 3504(g) (2) and (3), and 3506(g) (2) and (3) to
title 44, United States Code, are each amended by inserting
the phrase ‘‘and section 161 of the Information Technology
Reform Act of 1995’’ after the phrase ‘‘the Computer Secu-
rity Act of 1987 (P.L. 100–235).
Subtitle G—Sense of Congress
SEC. 4171. SENSE OF CONGRESS.
It is the sense of Congress over the next five years that
executive agencies should achieve at least a real 5 percent
per year decrease in the cost incurred by the agency for
operating and maintaining information technology, and a
real 5 percent per year increase in the efficiency of the agen-
cy operations, by reason of improvements in information
resources management by the agency.
TITLE XLII—PROCESS FOR AC-
QUISITIONS 
OF 
INFORMA-
TION TECHNOLOGY
Subtitle A—Procedures
SEC. 4201. PROCUREMENT PROCEDURES.
(a) RESPONSIBILITY.—The Director of the Office of
Management and Budget of the United States shall issue
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guidance to be used in conducting information technology
acquisitions.
(b) STANDARDS
FOR PROCEDURES.—The Director
shall ensure that the process for acquisition of information
technology is, in general, a simplified, clear, and under-
standable process that specifically addresses the manage-
ment of risk.
(c) PERFORMANCE MEASUREMENTS.—The guidance
shall include performance measurements and other perform-
ance requirements that the Director determines appro-
priate.
(d) USE OF COMMERCIAL ITEMS.—The guidance shall
mandate the use, to the maximum extent practicable, of
commercial items to meet the information technology re-
quirements of the executive agency.
(e) DIFFERENTIATED PROCEDURES.—Subject to sub-
section (b), the Director shall consider whether and, to the
extent appropriate, how to differentiate in the treatment
and conduct of acquisitions of information technology on
any of the following bases:
(1) The dollar value of the acquisition.
(2) The information technology to be acquired,
including such consideration as whether the item is a
commercial item or an item being developed or modi-
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fied uniquely for use by one or more executive agen-
cies.
(3) The complexity of the information technology
acquisition, including such considerations as size and
scope.
(4) The level of risk, including technical and
schedule risks.
(5) The level of experience or expertise of the
critical personnel in the program office, mission unit,
or office of the chief information officer of the execu-
tive agency concerned.
(6) the extent to which the information tech-
nology may be used Governmentwide or by several
agencies.
SEC. 4202. INCREMENTAL ACQUISITION OF INFORMATION
TECHNOLOGY.
(a) CIVILIAN AGENCIES.—
(1) PROCEDURES AUTHORIZED.—Title III of the
Federal Property and Administrative Services Act of
1949 (41 U.S.C. 251 et seq.) is amended by inserting
after section 303H the following new section:
‘‘MODULAR CONTRACTING
‘‘SEC. 303I. (a) IN GENERAL.—An executive agency’s
need for a major system of information technology should,
to the maximum extent practicable, be satisfied in succes-
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sive acquisitions of interoperable increments pursuant to
subsections (b) and (c). Such increments shall comply with
readily available standards such that they can be connected
to other increments that comply with such standards.
‘‘(b) DIVISION OF ACQUISITIONS INTO INCREMENTS.—
Under the successive, incremental acquisition process, a
major system of information technology may be divided into
several smaller acquisition increments that—
‘‘(1) are easier to manage individually than
would be one extensive acquisition;
‘‘(2) address complex information technology
problems incrementally in order to enhance the likeli-
hood of achieving workable solutions for those prob-
lems;
‘‘(3) provide for delivery, implementation, and
testing of workable systems or solutions in discrete in-
crements each of which comprises a system or solution
that is not dependent on any subsequent increment in
order to perform its principal functions; and
‘‘(4) provide an opportunity for subsequent in-
crements of the acquisition to take advantage of any
evolution in technology or needs that occur during
conduct of the earlier increments.
‘‘(c) TIMELY ACQUISITIONS.—(1) A contract for an in-
crement of an information technology acquisition should,
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to the maximum extent practicable, be awarded within 180
days after the date on which the solicitation is issued, or
that increment of the acquisition should be considered for
cancellation.
‘‘(2) The information technology provided for in a con-
tract for acquisition of information technology should be de-
livered within 18 months after the date on which the solici-
tation resulting in award of the contract was issued.’’.
(2) CLERICAL AMENDMENT.—The table of con-
tents in the first section of such Act is amended by
inserting after the item relating to section 303H the
following new item:
‘‘Sec. 303I Modular contracting.’’.
(b) DEPARTMENT OF DEFENSE.—
(1) PROCEDURES AUTHORIZED.—Chapter 137 of
title 10, United States Code, is amended by inserting
after section 2305 the following new section:
‘‘§ 2305a. Modular Contracting
‘‘(a) IN GENERAL.—An executive agency’s need for a
major system of information technology should, to the maxi-
mum extent practicable, be satisfied in successive acquisi-
tions of interoperable increments pursuant to subsections
(b) and (c). Such increments shall comply with readily
available standards such that they can be connected to other
increments that comply with such standards.
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‘‘(b) DIVISION OF ACQUISITIONS INTO INCREMENTS.—
Under the successive incremental acquisition process, a
major system of information technology may be divided into
several smaller acquisition increments that—
‘‘(1) are easier to manage individually than
would be one extensive acquisition;
‘‘(2) address complex information technology
problems incrementally in order to enhance the likeli-
hood of achieving workable solutions for those prob-
lems;
‘‘(3) provide for delivery, implementation, and
testing of workable systems or solutions in discrete in-
crements each of which comprises a system or solution
that is not dependent on any subsequent increment in
order to perform its principal functions; and
‘‘(4) provide an opportunity for subsequent in-
crements of the acquisition to take advantage of any
evolution in technology or needs that occur during
conduct of the earlier increments.
‘‘(c) TIMELY ACQUISITIONS.—(1) A contract for an in-
crement of an information technology acquisition should,
to the maximum extent practicable, be awarded within 180
days after the date on which the solicitation is issued, or
that increment of the acquisition should be considered for
cancellation.
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‘‘(2) The information technology provided for in a con-
tract for acquisition of information technology should be de-
livered within 18 months after the date on which the solici-
tation resulting in award of the contract was issued.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by
inserting after the item relating to section 2305 the
following:
‘‘2305a. Modular contracting.’’.
SEC. 4203. TASK AND DELIVERY ORDER CONTRACTS.
(a) CIVILIAN AGENCY ACQUISITIONS.—
(1) REQUIREMENT
FOR
MULTIPLE
AWARDS.—
Section 303H(d) of the Federal Property and Admin-
istrative Services Act of 1949 (41 U.S.C. 253H(d)) is
amended by adding at the end the following new
paragraph:
‘‘(4) In exercising the authority under this sec-
tion for procurement of information technology, the
head of an executive agency shall award at least two
task or delivery order contracts for the same or simi-
lar information technology services or property unless
the agency determines that it is not in the best inter-
ests of the United States to award two or more such
contracts.’’.
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(2) DEFINITION.—Section 303K of such Act (41
U.S.C. 253K) is amended by adding at the end the
following new paragraph:
‘‘(3) The term ‘information technology’ has the
meaning given that term in section 4 of the Informa-
tion Technology Management Reform Act of 1995.’’.
(b) ARMED SERVICES ACQUISITIONS.—
(1) REQUIREMENT
FOR
MULTIPLE
AWARDS.—
Section 2304a(d) of title 10, United States Code, is
amended by adding at the end the following new
paragraph:
‘‘(4) In exercising the authority under this sec-
tion for procurement of information technology, the
head of an executive agency shall award at least two
task or delivery order contracts for the same or simi-
lar information technology services or property unless
the agency determines that it is not in the best inter-
ests of the United States to award two or more such
contracts.’’.
(2) DEFINITION.—Section 2304d of title 10,
United States Code, is amended by adding at the end
the following new paragraph:
‘‘(3) The term ‘information technology’ has the
meaning given that term in section 4 of the Informa-
tion Technology Management Reform Act of 1995.’’.
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Subtitle B—Acquisition
Management
SEC. 4221. ACQUISITION MANAGEMENT TEAM.
(a) CAPABILITIES OF AGENCY PERSONNEL.—The head
of each executive agency shall ensure that the agency person-
nel involved in an acquisition of information technology
have the experience, and have demonstrated the skills and
knowledge, necessary to carry out the acquisition com-
petently.
(b) USE OF OUTSIDE ACQUISITION TEAM.—If the head
of the executive agency determines that such personnel are
not available for carrying out the acquisition, the head of
that agency should consider designating a capable executive
agent to carry out the acquisition.
SEC. 4222. OVERSIGHT OF ACQUISITIONS.
It is the sense of Congress that the director of the Office
of Management and Budget, the heads of executive agencies,
and the inspectors general of executive agencies, in perform-
ing responsibilities for oversight of information technology
acquisitions, should emphasize reviews of the operational
justifications for the acquisitions, the results of the acquisi-
tion programs, and the performance measurements estab-
lished for the information technology rather than reviews
of the acquisition process.
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TITLE 
XLIII—INFORMATION
TECHNOLOGY 
ACQUISITION
PILOT PROGRAMS
Subtitle A—Conduct of Pilot
Programs
SEC. 4301. AUTHORIZATION TO CONDUCT PILOT PRO-
GRAMS.
(a) IN GENERAL.—
(1) PURPOSE.—The Administrator for Federal
Procurement Policy (hereinafter referred to as the
‘‘Administrator’’), in consultation with the Adminis-
trator for the Office of Information and Regulatory
Affairs shall be authorized to conduct pilot programs
in order to test alternative approaches for acquisition
of information technology and other information re-
sources by executive agencies.
(2) MULTI-AGENCY, MULTI-ACTIVITY CONDUCT OF
EACH
PROGRAM.—Except as otherwise provided in
this title, each pilot program conducted under this
title shall be carried out in not more than two procur-
ing activities in each of two executive agencies des-
ignated by the Administrator. The head of each des-
ignated executive agency shall, with the approval of
the Administrator, select the procuring activities of
the agency to participate in the test and shall des-
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ignate a procurement testing official who shall be re-
sponsible for the conduct and evaluation of the pilot
program within the agency.
(b) LIMITATIONS.—
(1) NUMBER.—Not more than two pilot pro-
grams shall be conducted under the authority of this
title, including one pilot program each pursuant to
the requirements of sections 4321 and 4322.
(2) AMOUNT.—The total amount obligated for
contracts entered into under the pilot programs con-
ducted under the authority of this title may not ex-
ceed $750,000,000. The Administrator shall monitor
such contracts and ensure that contracts are not en-
tered into in violation of the limitation in the preced-
ing sentence.
(c) INVOLVEMENT OF CHIEF INFORMATION OFFICERS
COUNCIL.—The Administrator may—
(1) conduct pilot programs recommended by the
Chief Information Officers Council; and
(2) consult with the Chief Information Officers
Council regarding development of pilot programs to
be conducted under this section.
(d) PERIOD OF PROGRAMS.—
(1) IN GENERAL.—Subject to paragraph (2), the
Administrator shall conduct a pilot program for the
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period, not in excess of five years, that is determined
by the Administrator to be sufficient to establish reli-
able results.
(2) CONTINUING
VALIDITY
OF
CONTRACTS.—A
contract entered into under the pilot program before
the expiration of that program shall remain in effect
according to the terms of the contract after the expira-
tion of the program.
SEC. 4302. EVALUATION CRITERIA AND PLANS.
(a) MEASURABLE TEST CRITERIA.—The head of each
executive agency conducting a pilot program under section
4301 shall establish, to the maximum extent practicable,
measurable criteria for evaluating the effects of the proce-
dures or techniques to be tested under the program.
(b) TEST PLAN.—Before a pilot program may be con-
ducted under section 4301 the Administrator shall submit
to the Committee on Governmental Affairs and the Commit-
tee on Small Business of the Senate and the Committee on
Government Reform and Oversight and the Committee on
Small Business of the House of Representative a detailed
test plan for the program, including a detailed description
of the procedures to be used and a list of any regulations
that are to be waived.
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SEC. 4303. REPORT.
(a) REQUIREMENT.—Not later than 180 days after the
completion of a pilot program conducted under this title
the Administrator shall—
(1) submit to the Director of the Office of Man-
agement and Budget a report on the results and find-
ings under the program; and
(2) provide a copy of the report to the Committee
on Governmental Affairs and the Committee on Small
Business of the Senate, and the Committee on Govern-
ment Reform and Oversight and the Committee on
Small Business of the House of Representatives.
(b) CONTENT.—The report shall include the following:
(1) A detailed description of the results of the
program, as measured by the criteria established for
the program.
(2) A discussion of any legislation that the Ad-
ministrator recommends, or changes in regulations
that the Administrator considers necessary, in order
to improve overall information resources management
within the Federal Government.
SEC. 4304. RECOMMENDED LEGISLATION.
If the Director of the Office of Management and Budget
determines that the results and findings under a pilot pro-
gram under this title indicate that legislation is necessary
or desirable in order to improve the process for acquisition
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of information technology, the Director shall transmit the
Director’s recommendations for such legislation to the Com-
mittee on Governmental Affairs and the Committee on
Small Business of the Senate and the Committee on Govern-
ment Reform and Oversight and the Committee on Small
Business of the House of Representatives.
SEC. 4305. RULE OF CONSTRUCTION.
Nothing in this title shall be construed as authorizing
the appropriation or obligation of funds for the pilot pro-
grams conducted pursuant to this title.
Subtitle B—Specific Pilot Programs
SEC. 4321. SHARE-IN-SAVINGS PILOT PROGRAM.
(a) REQUIREMENT.—The Administrator may author-
ize agencies to carry out a pilot program to test the feasibil-
ity of—
(1) contracting on a competitive basis with a
private sector source to provide the Federal Govern-
ment with an information technology solution for im-
proving mission-related or administrative processes of
the Federal Government; and
(2) paying the private sector source an amount
equal to a portion of the savings derived by the Fed-
eral Government from any improvements in mission-
related processes and administrative processes that re-
sult from implementation of the solution.
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(b) PROGRAM CONTRACTS.—Up to five contracts for
one project each may be entered into under the pilot pro-
gram.
(c) SELECTION OF PROJECTS.—The projects shall be
selected by the Administrator, in consultation with the Ad-
ministrator for the Office of Information and Regulatory
Affairs, from among projects recommended by the Chief In-
formation Officers Council.
SEC. 4322. SOLUTIONS-BASED CONTRACTING PILOT PRO-
GRAM.
(a) IN GENERAL.—The Administrator may authorize
agencies to carry out a pilot program to test the feasibility
of the use of solutions-based contracting for acquisition of
information technology.
(b) SOLUTIONS-BASED CONTRACTING DEFINED.—For
purposes of this section, solutions-based contracting is an
acquisition method under which the Federal Government
user of the technology to be acquired defines the acquisition
objectives, uses a streamlined contractor selection process,
and allows industry sources to provide solutions that attain
the objectives effectively. The emphasis of the method is on
obtaining from industry an optimal solution.
(c) PROCESS.—The Administrator shall require use of
the following process for acquisitions under the pilot pro-
gram:
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(1) ACQUISITION PLAN EMPHASIZING DESIRED
RESULT.—Preparation of an acquisition plan that
defines the functional requirements of the intended
users of the information technology to be acquired,
identifies the operational improvement results to be
achieved, and defines the performance measurements
to be applied in determining whether the information
technology acquired satisfies the defined requirements
and attains the identified results.
(2) RESULTS-ORIENTED STATEMENT OF WORK.—
Use of a statement of work that is limited to an ex-
pression of the end results or performance capabilities
desired under the acquisition plan.
(3) SMALL ACQUISITION ORGANIZATION.—Assem-
bly of small acquisition organization consisting of the
following:
(A) An acquisition management team, the
members of which are to be evaluated and re-
warded under the pilot program for contribu-
tions toward attainment of the desired results
identified in the acquisition plan.
(B) A small source selection team composed
of representatives in the specific mission or ad-
ministrative area to be supported by the infor-
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mation technology to be acquired, a contracting
officer, and persons with relevant expertise.
(4) USE OF SOURCE SELECTION FACTORS EM-
PHASIZING SOURCE QUALIFICATIONS.—Use of source
selection factors that are limited to determining the
qualifications of the offeror, including such factors as
personnel skills, previous experience in providing
other private or public sector organizations with solu-
tions for attaining objectives similar to the objectives
to be attained in the acquisition, past contract per-
formance, qualifications of the proposed program
manager, and the proposed management plan.
(5) OPEN COMMUNICATIONS WITH CONTRACTOR
COMMUNITY.—Open availability of the following in-
formation to potential offerors:
(A) The agency mission to be served by the
acquisition.
(B) The functional process to be performed
by use of information technology.
(C) The process improvements to be at-
tained.
(6) SIMPLE SOLICITATION.—Use of a simple so-
licitation that sets forth only the functional work de-
scription, source selection factors, the required terms
and conditions, instructions regarding submission of
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offers, and the estimate of the Federal Government’s
budget for the desired work.
(7) SIMPLE
PROPOSALS.—Submission of oral
proposals and acceptance of written supplemental
submissions that are limited in size and scope and
contain information on the offeror’s qualifications to
perform the desired work together with information of
past contract performance.
(8) SIMPLE EVALUATION.—Use of a simple eval-
uation process, to be completed within 45 days after
receipt of proposals, which consists of the following:
(A) Identification of the offerors that are
within the competitive range of most of the
qualified offerors.
(B) Issuance of invitations for at least three
and not more than five of the identified offerors
to make oral presentations to, and engage in dis-
cussions with, the evaluating personnel regarding
the qualifications of the offerors, including how
the qualifications of each offeror relate to the ap-
proaches proposed to be taken by the offeror in
the acquisition.
(C) Evaluation of the qualifications of the
identified offerors on the basis of submissions re-
quired under the process and any oral presen-
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tations made by, and any discussions with, the
offerors.
(9) SELECTION OF MOST QUALIFIED OFFEROR.—
A selection process consisting of the following:
(A) Identification of the most qualified
source, and ranking of alternative sources, pri-
marily on the basis of the oral proposals, presen-
tations, and discussions, but taking into consid-
eration supplemental written submissions.
(B) Conduct for 30 to 60 days of a program
definition phase, funded by the Federal Govern-
ment—
(i) during which the selected source, in
consultation with one or more intended
users, develops a conceptual system design
and technical approach, defines logical
phases for the project, and estimates the
total cost and the cost for each phase; and
(ii) after which a contract for perform-
ance of the work may be awarded to that
source on the basis of cost, the responsive-
ness, reasonableness, and quality of the pro-
posed performance, and a sharing of risk
and benefits between the source and the
Government.
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(C) Conduct of as many successive program
definition phases with the alternative sources (in
the order ranked) as is necessary in order to
award a contract in accordance with subpara-
graph (B).
(10) SYSTEM IMPLEMENTATION PHASING.—Sys-
tem implementation to be executed in phases that are
tailored to the solution, with various contract ar-
rangements being used, as appropriate, for various
phases and activities.
(11) MUTUAL AUTHORITY TO TERMINATE.—Au-
thority for the Federal Government or the contractor
to terminate the contract without penalty at the end
of any phase defined for the project.
(12) TIME MANAGEMENT DISCIPLINE.—Applica-
tion of a standard for awarding a contract within 60
to 90 days after issuance of the solicitation.
(d) PILOT PROGRAM DESIGN.—
(1) JOINT PUBLIC-PRIVATE WORKING GROUP.—
The Administrator, in consultation with the Adminis-
trator for the Office of Information and Regulatory
Affairs shall establish a joint working group of Fed-
eral Government personnel and representatives of the
information technology industry to design a plan for
conduct of the pilot program. The establishment and
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operation of this working group shall not be subject
to the requirements of the Federal Advisory Commit-
tee Act, Public Law 92–463, as amended (5 U.S.C.
App.).
(2) CONTENT OF PLAN.—The plan shall provide
for use of solutions-based contracting in the Depart-
ment of Defense and not more than two other execu-
tive agencies for a total of—
(A) not more than 10 projects, each of
which 
has 
an 
estimated 
cost 
of 
between
$25,000,000 and $100,000,000; and
(B) not more than 10 projects, each of
which 
has 
an 
estimated 
cost 
of 
between
$1,000,000 and $5,000,000, to be set aside for
small business concerns.
(3) COMPLEXITY OF PROJECTS.—(A) Subject to
subparagraph (C), each acquisition project under the
pilot program shall be sufficiently complex to provide
for meaningful evaluation of the use of solutions-based
contracting for acquisition of information technology
for executive agencies.
(B) In order for an acquisition project to satisfy
the requirement in subparagraph (A)—
(i) the solution for attainment of the execu-
tive agency’s objectives under the project should
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not be obvious, but rather shall involve a need for
some innovative development; and
(ii) the project shall incorporate all ele-
ments of system integration.
(C) An acquisition project should not be so ex-
tensive or lengthy as to result in undue delay in the
evaluation of the use of solutions-based contracting.
(e) USE OF EXPERIENCED FEDERAL PERSONNEL.—
Only Federal Government personnel who are experienced,
and have demonstrated success, in managing or otherwise
performing significant functions in complex acquisitions
shall be used for evaluating offers, selecting sources, and
carrying out the performance phases in an acquisition
under the pilot program.
(f) MONITORING BY GAO.—
(1) REQUIREMENT.—The Comptroller General of
the United States shall—
(A) monitor the conduct, and review the re-
sults, of acquisitions under the pilot program;
and
(B) submit to Congress periodic reports con-
taining the views of the Comptroller General on
the activities, results, and findings under the
pilot program.
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(2) EXPIRATION
OF
REQUIREMENT.—The re-
quirement under paragraph (1)(B) shall terminate
after submission of the report that contains the final
views of the Comptroller General on the last of the ac-
quisition projects completed under the pilot program.
TITLE XLIV—OTHER INFORMA-
TION 
RESOURCES 
MANAGE-
MENT REFORM
SEC. 4401. ON-LINE MULTIPLE AWARD SCHEDULE CON-
TRACTING.
(a) AUTOMATION OF MULTIPLE AWARD SCHEDULE
CONTRACTING.—(1) In order to provide for the economic
and efficient procurement of information technology, the
Administrator of General Services shall establish a program
for the development and implementation of a system to pro-
vide Governmentwide, on-line computer access to informa-
tion on information technology products and services that
are available for ordering through multiple award sched-
ules.
(2) The system required by paragraph (1) shall, at a
minimum—
(A) provide basic information on prices, features,
and performance of all products and services avail-
able for ordering through the multiple award sched-
ules;
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(B) provide for updating that information to re-
flect changes in prices, features, and performance as
soon as information on the changes becomes available;
(C) enables users to make on-line computer com-
parisons of the prices, features, and performance of
similar products and services offered by various ven-
dors;
(D) enable users to place, and vendors to receive,
on-line computer orders for products and services
available for ordering through the multiple award
schedules (up to the maximum order limitation of the
applicable schedule contract);
(E) enable ordering agencies to make payments
to contractors by bank card, electronic funds transfer,
or other automated methods in cases in which it is
practicable and in the interest of the Federal Govern-
ment to do so; and
(F) archive data relating to each order placed
against multiple award schedule contracts using such
system, including, at a minimum, data on—
(i) the agency or office placing the order;
(ii) the vendor receiving the order;
(iii) the products or services ordered; and
(iv) the total price of the order.
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(3)(A) The system required by paragraph (1) shall be
implemented not later than January 1, 1998.
(B) The Administrator shall certify to Congress that
the system required by paragraph (1) has been implemented
at such time as a system meeting the requirements of para-
graph (2) is in place and accessible by at least 90 percent
of the potential users in the departments and agencies of
the Federal Government.
(4) Orders placed against multiple award schedule
contracts through the system required by paragraph (1)
may be considered for purposes of the determinations re-
garding implementation of the capability described under
subsection (b) of section 30A of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 426a) and implementation
of such capability under subsection (d) of such section.
(b) STREAMLINED PROCEDURES; PILOT PROGRAM.—
(1)(A) In order to provide for compliance with provisions
of law requiring the use of competitive procedures in Fed-
eral Government procurement, the procedures established by
the Administrator of General Services for the program re-
ferred to in subsection (a) shall include requirements for—
(i) participation in multiple award schedule
contracts to be open to all responsible and responsive
sources; and
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(ii) orders to be placed using a process which re-
sults in the lowest overall cost alternative to meet the
needs of the Government, except in a case in which
a written determination is made (in accordance with
such procedures) that a different alternative would
provide a substantially better overall value to the
Government.
(B) The Administrator may require offerors to agree
to accept orders electronically through the electronic ex-
change of procurement information in order to be eligible
for award of a multiple award schedule contract.
(C) Regulations on the acquisition of commercial items
issued pursuant to section 8002 of the Federal Acquisition
Streamlining Act of 1994 (Public Law 103–355; 108 Stat.
3386; 41 U.S.C. 264 note) shall apply to multiple award
schedule contracts.
(2) Within 90 days after the Administrator makes the
certification referred to in subsection (a)(3)(B), the Admin-
istrator shall establish a pilot program to test streamlined
procedures for the procurement of information technology
products and services available for ordering through the
multiple award schedules. The Administrator shall provide
for the pilot program to be applicable to all multiple award
schedule contracts for the purchase of information tech-
nology and to test the following procedures:
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(A) A procedure under which negotiation of the
terms and conditions for a covered multiple award
schedule contract is limited to terms and conditions
other than price.
(B) A procedure under which the vendor estab-
lishes the prices under a covered multiple award
schedule contract and may adjust those prices at any
time in the discretion of the vendor.
(C) A procedure under which a covered multiple
award schedule contract is awarded to any respon-
sible and responsive offeror that—
(i) has a suitable record of past perform-
ance on Federal Government contracts, including
multiple award schedule contracts;
(ii) agrees to terms and conditions that the
Administrator determines as being required by
law or as being appropriate for the purchase of
commercial items; and
(iii) agrees to establish and update prices
and to accept orders electronically through the
automated system established pursuant to sub-
section (a).
(3)(A) Not later than three years after the date on
which the pilot program is established, the Comptroller
General of the United States shall review the pilot program
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and report to the Committee on Governmental Affairs and
the Committee on Small Business of the Senate and the
Committee on Government Reform and Oversight and the
Committee on Small Business of the House of Representa-
tives on the results of the pilot program.
(B) The report shall include the following:
(i) An evaluation of the extent of the competition
for the orders placed under the pilot program.
(ii) The effect of the pilot program on prices
charged under multiple award schedule contracts.
(iii) The effect of the pilot program on paper-
work requirements for multiple award schedule con-
tracts and orders.
(iv) The impact of the pilot program on small
businesses and socially and economically disadvan-
taged small businesses.
(4) Unless reauthorized by Congress, the authority of
the Administrator to award contracts under the pilot pro-
gram shall expire four years after the date on which the
pilot program is established. Contracts entered into before
the authority expires shall remain in effect in accordance
with their terms notwithstanding the expiration of the au-
thority to enter new contracts under the pilot program.
(c) DEFINITIONS.—In this section:
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(1) The term ‘‘information technology’’ has the
meaning given that term in section 4 of this Act.
(2) The term ‘‘commercial item’’ has the mean-
ing given the term in section 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(12)).
(3) The term ‘‘competitive procedures’’ has the
meaning given the term in section 309(b) of the Fed-
eral Property and Administrative Services Act of
1949 (41 U.S.C. 259(b)).
SEC. 4402. DISPOSAL OF EXCESS COMPUTER EQUIPMENT.
(a) AUTHORITY TO DONATE.—The head of an execu-
tive agency may, without regard to the procedures otherwise
applicable under title II of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 481 et seq.),
convey without consideration all right, title, and interest
of the United States in any computer equipment under the
control of such official that is determined under title II of
such Act as being excess property to a recipient in the fol-
lowing order of priority:
(1) Elementary and secondary schools under the
jurisdiction of a local educational agency and schools
funded by the Bureau of Indian Affairs.
(2) Public libraries.
(3) Public colleges and universities.
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(b) INVENTORY REQUIRED.—Upon the enactment of
this Act, the head of an executive agency shall inventory
all computer equipment under the control of that official
and identify in accordance with title II of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C.
481 et seq.) the equipment, if any, that is excess property.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘excess property’’ has the meaning
given such term in section 3 of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C.
472).
(2) The terms ‘‘local educational agency’’, ‘‘ele-
mentary school’’, and ‘‘secondary school’’ have the
meanings given such terms in section 14101 of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
SEC. 4403. LEASING INFORMATION TECHNOLOGY.
(a) ANALYSIS BY GAO.—The Comptroller General of
the United States shall perform a comparative analysis of
alternative means of financing the acquisition of informa-
tion technology. The analysis should—
(1) investigate the full range of alternative fi-
nancing mechanisms, to include leasing, purchasing
and rentals of new and used equipment; and
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(2) assess the relative costs, benefits and risks of
alternative financing options for the Federal Govern-
ment.
(b) LEASING GUIDELINES.—Based on the analysis, the
Comptroller General shall develop recommended guidelines
for financing information technology for executive agencies.
TITLE XLV—PROCUREMENT PRO-
TEST 
AUTHORITY 
OF 
THE
COMPTROLLER GENERAL
SEC. 4501. PERIOD FOR PROCESSING PROTESTS.
Section 3554(a) of title 31, United States Code, is
amended—
(1) in paragraph (1), by striking out ‘‘para-
graph (2)’’ in the second sentence and inserting in
lieu thereof ‘‘paragraphs (2) and (5)’’; and
(2) by adding at the end the following:
‘‘(5)(A) The requirements and restrictions set
forth in this paragraph apply in the case of a protest
in a procurement of information technology.
‘‘(B) The Comptroller General shall issue a final
decision concerning a protest referred to in subpara-
graph (A) within 45 days after the date of the protest
is submitted to the Comptroller General.
‘‘(C) The disposition under this subchapter of a
protest in a procurement referred to in subparagraph
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(A) bars any further protest under this subchapter by
the same interested party on the same procurement.’’.
SEC. 4502. DEFINITION.
Section 3551 of title 31, United States Code, is amend-
ed by adding at the end the following:
‘‘(4) The term ‘information technology’ has the
meaning given that term in section 4 of the Informa-
tion Technology Management Reform Act of 1995.’’.
SEC. 4503. EXCLUSIVITY OF ADMINISTRATIVE REMEDIES.
Section 3556 of title 31, United States Code, is amend-
ed by striking out the first sentence and inserting in lieu
thereof the following:
‘‘Notwithstanding any other provision of law, the
Comptroller General shall have the exclusive administrative
authority to resolve a protest involving the solicitation, a
proposal for award, or an award of a contract for informa-
tion technology, to the exclusion of the boards of contract
appeals or any other entity. Nothing contained in the sub-
chapter shall affect the right of any interested party to file
a protest with the contracting agency or to file an action
in a district court of the United States of the United States
Court of Federal Claims.’’.
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TITLE 
XLVI—RELATED 
TERMI-
NATIONS, 
CONFORMING
AMENDMENTS, AND CLERICAL
AMENDMENTS
Subtitle A—Conforming
Amendments
SEC. 4601. AMENDMENTS TO TITLE 10, UNITED STATES
CODE.
For the Department of Defense section 2315 of such
title is amended by striking out from the words ‘‘Section
111’’ through the words ‘‘use of equipment or services if,’’
and substituting therein the following:
‘‘For the purposes of the Information Technology Man-
agement Reform Act of 1995, the term ‘national security
systems’ means those telecommunications and information
systems operated by the Department of Defense, the func-
tions, operation or use of which’’.
SEC. 4602. AMENDMENTS TO TITLE 28, UNITED STATES
CODE.
Section 612 of title 28, United States Code, is amend-
ed—
(1) in subsection (f), by striking out ‘‘section 111
of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 759)’’ and inserting in lieu
thereof ‘‘the provisions of law, policies, and regula-
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tions applicable to executive agencies under the Infor-
mation Technology Management Reform Act of
1995’’;
(2) in subsection (g), by striking out ‘‘sections
111 and 201 of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 481 and 759)’’
and inserting in lieu thereof ‘‘section 201 of the Fed-
eral Property and Administrative Services Act of
1949 (40 U.S.C. 481)’’;
(3) by striking out subsection (l); and
(4) by redesignating subsection (m) as subsection
(l).
SEC. 4603. AMENDMENTS TO TITLE 31, UNITED STATES
CODE.
(a) AVAILABILITY OF FUNDS FOLLOWING RESOLUTION
OF A PROTEST.—Section 1558(b) of title 31, United States
Code, is amended by striking out ‘‘or under section 111(f)
of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 759(f))’’.
(b) GAO PROCUREMENT PROTEST SYSTEM.—Section
3552 of such title is amended by striking out the second
sentence.
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SEC. 4604. AMENDMENTS TO TITLE 38, UNITED STATES
CODE.
Section 310 of title 38, United States Code, is amended
to read as follows:
‘‘SEC. 310. CHIEF INFORMATION OFFICER.
‘‘(a) The Secretary shall designate a chief information
officer for the Department in accordance with section
4135(a) of the Information Technology Management Reform
Act of 1995.
‘‘(b) The chief information officer shall perform the du-
ties provided for chief information officers of executive agen-
cies under the Information Technology Management Reform
Act of 1995.’’.
SEC. 4605. PROVISIONS OF TITLE 44, UNITED STATES CODE,
RELATING TO PAPERWORK REDUCTION.
(a) DEFINITION.—Section 3502 of title 44, United
States Code, is amended by striking out paragraph (9) and
inserting in lieu thereof the following:
‘‘(9) the term ‘information technology’ has the
meaning given that term in section 4004 of the Infor-
mation Technology Management Reform Act of
1995;’’.
(b) DEVELOPMENT OF STANDARDS AND GUIDELINES
BY NATIONAL INSTITUTE
OF STANDARDS
AND TECH-
NOLOGY.—Section 3504(h)(1)(B) of such title is amended
by striking out ‘‘section 111(d) of the Federal Property and
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Administrative Services Act of 1949 (40 U.S.C. 759(d))’’
and inserting in lieu thereof ‘‘paragraphs (2) and (3) of
section 20(a) of the National Institute of Standards and
Technology Act (15 U.S.C. 278g–3(a))’’.
(c) 
COMPLIANCE
WITH
DIRECTIVES.—Section
3504(h)(2) of such title is amended by striking out ‘‘sections
110 and 111 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 757 and 759)’’ and insert-
ing in lieu thereof ‘‘the Information Technology Manage-
ment Reform Act of 1995 and directives issued under sec-
tion 110 of the Federal Property and Administrative Serv-
ices Act of 1949 (40 U.S.C. 757)’’.
SEC. 4606. AMENDMENT TO TITLE 49, UNITED STATES CODE.
Section 40112(a) of title 49, United States Code, is
amended by striking out ‘‘or a contract to purchase prop-
erty to which section 111 of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 759) applies’’.
SEC. 4607. OTHER LAWS.
(a) COMPUTER SECURITY ACT OF 1987.—(1) Section
2(b)(2) of the Computer Security Act of 1987 (Public Law
100–235; 101 Stat. 1724) is amended by striking out ‘‘by
amending section 111(d) of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 759(d))’’; and
(2) Nothing in the Information Technology Management
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Reform Act shall affect the limitations on the authorities
set forth in Public Law 100–235.
(b) NATIONAL ENERGY CONSERVATION POLICY ACT.—
Section 801(b)(3) of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8287(b)(3)) is amended by striking out
the second sentence.
(c) NATIONAL SECURITY ACT OF 1947.—Section 3 of
the National Security Act of 1947 (50 U.S.C. 403c) is
amended by striking out subsection (e).
SEC. 4608. ACCESS OF CERTAIN INFORMATION IN INFORMA-
TION SYSTEMS TO THE DIRECTORY AND SYS-
TEM OF ACCESS ESTABLISHED UNDER SEC-
TION 4101 OF TITLE 44, UNITED STATES CODE.
Notwithstanding any other provision of this division,
if in designing an information technology system pursuant
to this division, the agency determines that a purpose of
the system is to disseminate information to the public, then
the head of such agency shall ensure that information so
disseminated is included in the directory created pursuant
to section 4101 of title 44, United States Code. Nothing in
this section shall authorize the dissemination of information
to the public unless otherwise authorized.
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SEC. 4609. RULE OF CONSTRUCTION RELATING TO THE
PROVISIONS OF TITLE 44, UNITED STATES
CODE.
Nothing in this division shall be construed to amend,
modify or supercede any provision of title 44, United States
Code, other than chapter 35 of title 44, United States Code.
Subtitle B—Clerical Amendment
SEC. 4621. AMENDMENT TO TITLE 38, UNITED STATES CODE.
The table of sections at the beginning of chapter 3 of
title 38, United States Code, is amended by striking out
the item relating to section 310 and inserting in lieu thereof
the following:
‘‘310. Chief information officer.’’.
TITLE XLVII—SAVINGS
PROVISIONS
SEC. 4701. SAVINGS PROVISIONS.
(a) REGULATIONS, INSTRUMENTS, RIGHTS, AND PRIVI-
LEGES.—All rules, regulations, contracts, orders, deter-
minations, permits, certificates, licenses, grants, and privi-
leges—
(1) which have been issued, made, granted, or al-
lowed to become effective by the Administrator of Gen-
eral Services or the General Services Administration
Board of Contract Appeals, or by a court of com-
petent jurisdiction, in connection with an acquisition
activity carried out under the section 111 of the Fed-
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eral Property and Administrative Services Act of
1949 (40 U.S.C. 759), and
(2) which are in effect on the effective date of
this title, shall continue in effect according to their
terms until modified, terminated, superseded, set
aside, or revoked in accordance with law by the Di-
rector of the Office of Management and Budget, any
other authorized official, by a court of competent ju-
risdiction, or by operation of law.
(b) PROCEEDINGS AND APPLICATIONS.—
(1) TRANSFERS OF FUNCTIONS NOT TO AFFECT
PROCEEDINGS.—This Act and the amendments made
by this Act shall not affect any proceeding, including
any proceeding involving a claim or application, in
connection with an acquisition activity carried out
under section 111 of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 759)
that is pending before the Administrator of General
Services or the General Services Administration
Board of Contract Appeals on the effective date of this
Act.
(2) ORDERS IN PROCEEDINGS.—Orders may be
issued in any such proceeding, appeals may be taken
therefrom, and payments may be made pursuant to
such orders, as if this Act had not been enacted. An
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order issued in any such proceeding shall continue in
effect until modified, terminated, superseded, or re-
voked by the Director of the Office of Management
and Budget, or any other authorized official, by a
court of competent jurisdiction, or by operation of
law.
(3) DISCONTINUANCE OR MODIFICATION OF PRO-
CEEDINGS NOT PROHIBITED.—Nothing in this sub-
section prohibits the discontinuance or modification
of any such proceeding under the same terms and
conditions and to the same extent that such proceed-
ing could have been discontinued or modified if this
Act had not been enacted.
(4) REGULATIONS FOR TRANSFER OF PROCEED-
INGS.—The Director of the Office of Management and
Budget may prescribe regulations providing for the
orderly transfer of proceedings continued under para-
graph (1).
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TITLE XLVIII—EFFECTIVE DATES
SEC. 4801. EFFECTIVE DATES.
This Act and the amendments made by this Act shall
take effect 180 days after the date of the enactment of this
Act.
Attest:
Secretary.
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