H. R. 1107—44 
sought and on market research, that offers will include only 
commercial items. 
(b) PROHIBITION ON DIVIDING PURCHASES.—A proposed purchase 
or contract for an amount above the simplified acquisition threshold 
may not be divided into several purchases or contracts for lesser 
amounts to use the simplified acquisition procedures required by 
subsection (a). 
(c) PROMOTION
OF COMPETITION REQUIRED.—When using sim-
plified acquisition procedures, the head of an executive agency 
shall promote competition to the maximum extent practicable. 
(d) CONSIDERATION OF OFFERS TIMELY RECEIVED.—The simplified 
acquisition procedures contained in the Federal Acquisition Regula-
tion shall include a requirement that a contracting officer consider 
each responsive offer timely received from an eligible offeror. 
(e) SPECIAL RULES FOR COMMERCIAL ITEMS.—The Federal Acquisi-
tion Regulation shall provide that an executive agency using special 
simplified procedures to purchase commercial items— 
(1) shall publish a notice in accordance with section 1708 
of this title and, as provided in section 1708(c)(4) of this title, 
permit all responsible sources to submit a bid, proposal, or 
quotation (as appropriate) that the agency shall consider; 
(2) may not conduct the purchase on a sole source basis 
unless the need to do so is justified in writing and approved 
in accordance with section 2304(f) of title 10 or section 3304(e) 
of this title, as applicable; and 
(3) shall include in the contract file a written description 
of the procedures used in awarding the contract and the number 
of offers received. 
§ 1902. Procedures applicable to purchases below micro-pur-
chase threshold 
(a) DEFINITION.—For purposes of this section, the micro-purchase 
threshold is $3,000. 
(b) COMPLIANCE WITH CERTAIN REQUIREMENTS AND NONAPPLICA-
BILITY OF CERTAIN AUTHORITY.— 
(1) COMPLIANCE WITH CERTAIN REQUIREMENTS.—The head of 
each executive agency shall ensure that procuring activities 
of that agency, when awarding a contract with a price exceeding 
the micro-purchase threshold, comply with the requirements 
of section 8(a) of the Small Business Act (15 U.S.C. 637(a)), 
section 2323 of title 10, and section 7102 of the Federal Acquisi-
tion Streamlining Act of 1994 (Public Law 103–355, 15 U.S.C. 
644 note). 
(2) NONAPPLICABILITY OF CERTAIN AUTHORITY.—The authority 
under part 13.106(a)(1) of the Federal Acquisition Regulation 
(48 C.F.R. 13.106(a)(1)), as in effect on November 18, 1993, 
to make purchases without securing competitive quotations 
does not apply to a purchase with a price exceeding the micro- 
purchase threshold. 
(c) NONAPPLICABILITY
OF CERTAIN PROVISIONS.—An executive 
agency purchase with an anticipated value of the micro-purchase 
threshold or less is not subject to section 15(j) of the Small Business 
Act (15 U.S.C. 644(j)) and chapter 83 of this title. 
(d) PURCHASES WITHOUT COMPETITIVE QUOTATIONS.—A purchase 
not greater than $3,000 may be made without obtaining competitive 
quotations if an employee of an executive agency or a member 
of the armed forces, authorized to do so, determines that the price 
for the purchase is reasonable.
H. R. 1107—45 
(e) EQUITABLE DISTRIBUTION.—Purchases not greater than $3,000 
shall be distributed equitably among qualified suppliers. 
(f) IMPLEMENTATION THROUGH FEDERAL ACQUISITION REGULA-
TION.—This section shall be implemented through the Federal 
Acquisition Regulation. 
§ 1903. Special emergency procurement authority 
(a) APPLICABILITY.—The authorities provided in subsections (b) 
and (c) apply with respect to a procurement of property or services 
by or for an executive agency that the head of the executive agency 
determines are to be used— 
(1) in support of a contingency operation (as defined in section 
101(a) of title 10); or 
(2) to facilitate the defense against or recovery from nuclear, 
biological, chemical, or radiological attack against the United 
States. 
(b) INCREASED THRESHOLDS AND LIMITATION.—For a procurement 
to which this section applies under subsection (a)— 
(1) the amount specified in section 1902(a), (d), and (e) of 
this title shall be deemed to be— 
(A) $15,000 in the case of a contract to be awarded 
and performed, or purchase to be made, in the United 
States; and 
(B) $25,000 in the case of a contract to be awarded 
and performed, or purchase to be made, outside the United 
States; 
(2) the term ‘‘simplified acquisition threshold’’ means— 
(A) $250,000 in the case of a contract to be awarded 
and performed, or purchase to be made, in the United 
States; and 
(B) $1,000,000 in the case of a contract to be awarded 
and performed, or purchase to be made, outside the United 
States; and 
(3) the $5,000,000 limitation in sections 1901(a)(2) and 
3305(a)(2) of this title and section 2304(g)(1)(B) of title 10 
is deemed to be $10,000,000. 
(c) AUTHORITY TO TREAT PROPERTY OR SERVICE AS COMMERCIAL 
ITEM.— 
(1) IN GENERAL.—The head of an executive agency carrying 
out a procurement of property or a service to which this section 
applies under subsection (a)(2) may treat the property or service 
as a commercial item for the purpose of carrying out the 
procurement. 
(2) CERTAIN CONTRACTS NOT EXEMPT FROM STANDARDS OR 
REQUIREMENTS.—A contract in an amount of more than 
$15,000,000 that is awarded on a sole source basis for an 
item or service treated as a commercial item under paragraph 
(1) is not exempt from— 
(A) cost accounting standards prescribed under section 
1502 of this title; or 
(B) cost or pricing data requirements (commonly referred 
to as truth in negotiating) under chapter 35 of this title 
and section 2306a of title 10. 
§ 1904. Certain transactions for defense against attack 
(a) AUTHORITY.— 
(1) IN
GENERAL.—The head of an executive agency that 
engages in basic research, applied research, advanced research,
H. R. 1107—46 
and development projects that are necessary to the responsibil-
ities of the executive agency in the field of research and develop-
ment and have the potential to facilitate defense against or 
recovery from terrorism or nuclear, biological, chemical, or 
radiological attack may exercise the same authority (subject 
to the same restrictions and conditions) with respect to the 
research and projects as the Secretary of Defense may exercise 
under section 2371 of title 10, except for subsections (b) and 
(f) of section 2371. 
(2) PROTOTYPE PROJECTS.—The head of an executive agency, 
under the authority of paragraph (1), may carry out prototype 
projects that meet the requirements of paragraph (1) in accord-
ance with the requirements and conditions provided for carrying 
out prototype projects under section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103–160, 
10 U.S.C. 2371 note), including that, to the maximum extent 
practicable, competitive procedures shall be used when entering 
into agreements to carry out projects under section 845(a) of 
that Act and that the period of authority to carry out projects 
under section 845(a) of that Act terminates as provided in 
section 845(i) of that Act. 
(3) APPLICATION
OF
REQUIREMENTS
AND
CONDITIONS.—In 
applying the requirements and conditions of section 845 of 
that Act under this subsection— 
(A) section 845(c) of that Act shall apply with respect 
to prototype projects carried out under paragraph (2); and 
(B) the Director of the Office of Management and Budget 
shall perform the functions of the Secretary of Defense 
under section 845(d) of that Act. 
(4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES.— 
(A) OFFICE
OF
MANAGEMENT
AND
BUDGET.—The head 
of an executive agency may exercise authority under this 
subsection for a project only if authorized by the Director 
of the Office of Management and Budget. 
(B) DEPARTMENT
OF
HOMELAND
SECURITY.—Authority 
under this subsection does not apply to the Secretary of 
Homeland Security while section 831 of the Homeland 
Security Act of 2002 (6 U.S.C. 391) is in effect. 
(b) REGULATIONS.—The Director of the Office of Management 
and Budget shall prescribe regulations to carry out this section. 
No transaction may be conducted under the authority of this section 
before the regulations take effect. 
(c) ANNUAL REPORT.—The annual report of the head of an execu-
tive agency that is required under section 2371(h) of title 10, as 
applied to the head of the executive agency by subsection (a), 
shall be submitted to the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee on Oversight 
and Government Reform of the House of Representatives. 
(d) TERMINATION
OF AUTHORITY.—The authority to carry out 
transactions under subsection (a) terminates on September 30, 2008. 
§ 1905. List of laws inapplicable to contracts or subcontracts 
not greater than simplified acquisition threshold 
(a) DEFINITION.—In this section, the term ‘‘Council’’ has the 
meaning given that term in section 1301 of this title. 
(b) INCLUSION IN FEDERAL ACQUISITION REGULATION.— 
(1) IN GENERAL.—The Federal Acquisition Regulation shall 
include a list of provisions of law that are inapplicable to