§ 3103. Acquisition programs 
(a) CONGRESSIONAL POLICY.—It is the policy of Congress that the head 
of each executive agency should achieve, on average, 90 percent of the cost, 
performance, and schedule goals established for major acquisition programs 
of the agency. 
(b) ESTABLISHMENT OF GOALS.— 
(1) BY HEAD OF EXECUTIVE AGENCY.—The head of each executive 
agency shall approve or define the cost, performance, and schedule 
goals for major acquisition programs of the agency. 
(2) BY CHIEF FINANCIAL OFFICER.—The chief financial officer of an 
executive agency shall evaluate the cost goals proposed for each major 
acquisition program of the agency. 
(c) IDENTIFICATION OF NONCOMPLIANT PROGRAMS.—When it is nec-
essary to implement the policy set out in subsection (a), the head of an ex-
ecutive agency shall— 
(1) determine whether there is a continuing need for programs that 
are significantly behind schedule, over budget, or not in compliance 
with performance or capability requirements; and 
(2) identify suitable actions to be taken, including termination, with 
respect to those programs. 
§ 3104. Small business concerns 
It is the policy of Congress that a fair proportion of the total purchases 
and contracts for property and services for the Federal Government shall 
be placed with small business concerns. 
§ 3105. New contracts and grants and merit-based selection 
procedures 
(a) CONGRESSIONAL POLICY.—It is the policy of Congress that— 
(1) an executive agency should not be required by legislation to 
award— 
(A) a new contract to a specific non-Federal Government entity; 
or 
(B) a new grant for research, development, test, or evaluation 
to a non-Federal Government entity; and 
(2) a program, project, or technology identified in legislation be pro-
cured or awarded through merit-based selection procedures. 
(b) NEW CONTRACT AND NEW GRANT DESCRIBED.—For purposes of 
this section— 
(1) a contract is a new contract unless the work provided for in the 
contract is a continuation of the work performed by the specified entity 
under a prior contract; and
(2) a grant is a new grant unless the work provided for in the grant 
is a continuation of the work performed by the specified entity under 
a prior grant. 
(c) REQUIREMENTS FOR AWARDING NEW CONTRACT OR NEW GRANT.— 
A provision of law may not be construed as requiring a new contract or a 
new grant to be awarded to a specified non-Federal Government entity un-
less the provision of law specifically— 
(1) refers to this section; 
(2) identifies the particular non-Federal Government entity involved; 
and 
(3) states that the award to that entity is required by the provision 
of law in contravention of the policy set forth in subsection (a). 
(d) EXCEPTION.—This section does not apply to a contract or grant that 
calls on the National Academy of Sciences to investigate, examine, or experi-
ment on a subject of science or art of significance to an executive agency 
and to report on those matters to Congress or an agency of the Federal 
Government. 
§ 3106. Erection, repair, or furnishing of public buildings 
and improvements not authorized, and certain 
contracts not permitted, by this division 
This division does not— 
(1) authorize the erection, repair, or furnishing of a public building 
or public improvement; or 
(2) permit a contract for the construction or repair of a building, 
road, sidewalk, sewer, main, or similar item using procedures other 
than sealed-bid procedures under section 3301(b)(1)(A) of this title if 
the conditions set forth in section 3301(b)(1)(A) of this title apply or 
the contract is to be performed outside the United States. 
CHAPTER 33—PLANNING AND SOLICITATION 
Sec. 
3301.
Full and open competition. 
3302.
Requirements for purchase of property and services pursuant to multiple award con-
tracts. 
3303.
Exclusion of particular source or restriction of solicitation to small business concerns. 
3304.
Use of noncompetitive procedures. 
3305.
Simplified procedures for small purchases. 
3306.
Planning and solicitation requirements. 
3307.
Preference for commercial items. 
3308.
Planning for future competition in contracts for major systems. 
3309.
Design-build selection procedures. 
3310.
Quantities to order. 
3311.
Qualification requirement. 
§ 3301. Full and open competition 
(a) IN GENERAL.—Except as provided in sections 3303, 3304(a), and 
3305 of this title and except in the case of procurement procedures other-
wise expressly authorized by statute, an executive agency in conducting a 
procurement for property or services shall— 
(1) obtain full and open competition through the use of competitive 
procedures in accordance with the requirements of this division and the 
Federal Acquisition Regulation; and 
(2) use the competitive procedure or combination of competitive pro-
cedures that is best suited under the circumstances of the procurement. 
(b) APPROPRIATE COMPETITIVE PROCEDURES.— 
(1) USE OF SEALED BIDS.—In determining the competitive proce-
dures appropriate under the circumstance, an executive agency shall— 
(A) solicit sealed bids if— 
(i) time permits the solicitation, submission, and evaluation 
of sealed bids; 
(ii) the award will be made on the basis of price and other 
price-related factors; 
(iii) it is not necessary to conduct discussions with the re-
sponding sources about their bids; and 
(iv) there is a reasonable expectation of receiving more 
than one sealed bid; or 
(B) request competitive proposals if sealed bids are not appro-
priate under subparagraph (A). 
(2) SEALED BID NOT REQUIRED.—Paragraph (1)(A) does not re-
quire the use of sealed-bid procedures in cases in which section 204(e) 
of title 23 applies. 
(c) EFFICIENT FULFILLMENT OF GOVERNMENT REQUIREMENTS.—The 
Federal Acquisition Regulation shall ensure that the requirement to obtain 
full and open competition is implemented in a manner that is consistent 
with the need to efficiently fulfill the Federal Government’s requirements. 
§ 3302. Requirements for purchase of property and services 
pursuant to multiple award contracts 
(a) DEFINITIONS.—In this section: 
(1) EXECUTIVE AGENCY.— The term ‘‘executive agency’’ has the 
same meaning given in section 133 of this title. 
(2) INDIVIDUAL PURCHASE.—The term ‘‘individual purchase’’ means 
a task order, delivery order, or other purchase. 
(3) MULTIPLE AWARD CONTRACT.—The term ‘‘multiple award con-
tract’’ means— 
(A) a contract that is entered into by the Administrator of Gen-
eral Services under the multiple award schedule program referred 
to in section 2302(2)(C) of title 10;
(B) a multiple award task order contract that is entered into 
under the authority of sections 2304a to 2304d of title 10, or 
chapter 41 of this title; and 
(C) any other indefinite delivery, indefinite quantity contract 
that is entered into by the head of an executive agency with 2 or 
more sources pursuant to the same solicitation. 
(4) SOLE
SOURCE
TASK
OR
DELIVERY
ORDER.—The term ‘‘sole 
source task or delivery order’’ means any order that does not follow 
the competitive procedures in paragraph (2) or (3) of subsection (c). 
(b) REGULATIONS REQUIRED.—The Federal Acquisition Regulation shall 
require enhanced competition in the purchase of property and services by 
all executive agencies pursuant to multiple award contracts. 
(c) CONTENT OF REGULATIONS.— 
(1) IN GENERAL.—The regulations required by subsection (b) shall 
provide that each individual purchase of property or services in excess 
of the simplified acquisition threshold that is made under a multiple 
award contract shall be made on a competitive basis unless a con-
tracting officer— 
(A) waives the requirement on the basis of a determination 
that— 
(i) one of the circumstances described in paragraphs (1) to 
(4) of section 4106(c) of this title or section 2304c(b) of title 
10 applies to the individual purchase; or 
(ii) a law expressly authorizes or requires that the purchase 
be made from a specified source; and 
(B) justifies the determination in writing. 
(2) COMPETITIVE BASIS PROCEDURES.—For purposes of this sub-
section, an individual purchase of property or services is made on a 
competitive basis only if it is made pursuant to procedures that— 
(A) require fair notice of the intent to make that purchase (in-
cluding a description of the work to be performed and the basis 
on which the selection will be made) to be provided to all contrac-
tors offering the property or services under the multiple award 
contract; and 
(B) afford all contractors responding to the notice a fair oppor-
tunity to make an offer and have that offer fairly considered by 
the official making the purchase. 
(3) EXCEPTION TO NOTICE REQUIREMENT.— 
(A) IN GENERAL.—Notwithstanding paragraph (2), and subject 
to subparagraph (B), notice may be provided to fewer than all 
contractors offering the property or services under a multiple