‘‘(iv) APPROPRIATE ADJUSTMENTS.— 
The Secretary shall develop an adjustment 
factor to reflect economic differences be-
tween the market area that was the subject 
of the market-priced auction for the item 
or service and the market area in which 
the supplier is located. The Secretary shall 
use such adjustment factor to adjust the 
payment amount made to a supplier pursu-
ant to clause (iii). The Secretary, auction 
expert, and market monitor shall consult 
with relevant stakeholders in developing 
such factor. 
‘‘(8) MONITORING OF ACCESS AND QUALITY.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
work with stakeholders to develop performance 
measures for suppliers that are awarded a con-
tract pursuant to paragraph (6)(A) to ensure 
compliance with the requirements of this sub-
section and the measures developed by the auc-
tion expert under subsection (c)(2)(B)(ii) and 
to monitor the performance of suppliers. 
‘‘(B) ENFORCEMENT.—If the Secretary 
determines that there has been a material fail-
ure of a supplier that has been awarded a con-
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tract under paragraph (6)(A) to comply with 
such requirements and measures, the Secretary 
shall implement enforcement measures. Such 
enforcement measures may include— 
‘‘(i) a formal warning letter; 
‘‘(ii) forfeiture of amounts submitted 
as a performance deposit pursuant to para-
graph (3)(B)(i) or paragraph (8); 
‘‘(iii) termination of a contract award-
ed pursuant to paragraph (6)(A); or 
‘‘(iv) termination of the supplier’s 
agreement to participate in the program 
established under this title for a period not 
to exceed 2 years. 
‘‘(C) APPEALS
MECHANISM.—The Sec-
retary shall ensure that, prior to the imposition 
of an enforcement measure under subparagraph 
(B), a supplier subject to such measure has an 
opportunity to appeal imposition of the meas-
ure. 
‘‘(e) APPLICATION
OF COMPETITIVE ACQUISITION 
PROGRAM PROVISIONS.—In implementing the market 
pricing program under this section, the provisions of sec-
tion 1847(b) shall be applied as follows: 
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‘‘(1) Paragraph (3) shall apply, except that, for 
purposes of contracts awarded under the market 
pricing program, subparagraph (B) of such para-
graph shall be applied by substituting ‘2 years’ for 
‘3 years’. 
‘‘(2) Subject to subsection (d)(7)(B), paragraph 
(4) shall apply. 
‘‘(3) Paragraph (5) shall apply, except that— 
‘‘(A) the reference in subparagraph (A) of 
such paragraph to subsection (a)(2) is deemed 
a reference to subsection (b)(1) of this section; 
and 
‘‘(B) the reference in subparagraph (B)(i) 
of such paragraph to subparagraph (A) is 
deemed a reference to subsection (d)(4) of this 
section. 
‘‘(4) Paragraph (6) shall apply, except that in 
applying subparagraph (D)— 
‘‘(A) the term ‘small suppliers’ shall mean 
an entity with a gross revenue that does not ex-
ceed $3,500,000; and 
‘‘(B) the Secretary shall ensure that at 
least 30 percent of the number of contractors 
that are awarded contracts pursuant to sub-
section (d)(6) of this section for each product 
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category in an eligible market area are small 
suppliers (as defined in subparagraph (A)). 
‘‘(5) Paragraph (7) shall not apply. 
‘‘(6) Paragraph (8) shall apply. 
‘‘(7) Paragraph (9) shall apply, except that 
such paragraph shall be applied as if a reference to 
a bidding program includes a reference to the mar-
ket pricing program. 
‘‘(8) Paragraph (10) shall apply, except that 
such paragraph shall be applied as if a reference to 
a competitive acquisition program includes a ref-
erence to the market pricing program. 
‘‘(9) Paragraph (11) shall not apply, except 
that— 
‘‘(A) the pendency of any claim for review 
under this section shall not delay any auction 
round conducted pursuant to subsection (a)(3) 
or (d)(1); and 
‘‘(B) there shall be no administrative or ju-
dicial review of any claim to enjoin the oper-
ation of a market-priced auction conducted. 
‘‘(f) TRANSPARENCY REQUIREMENTS FOR MARKET 
PRICING PROGRAM.— 
‘‘(1) IN GENERAL.—In implementing the mar-
ket pricing program, the Secretary shall provide for 
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publication, on an Internet Web site operated by the 
Secretary, of the following information: 
‘‘(A) The qualifications necessary to sub-
mit a bid pursuant to subsection (d)(3). 
‘‘(B) The financial requirements and ratios 
of such requirements necessary for an entity de-
scribed in subparagraph (A) that are applicable 
for purposes of subsection (d)(3)(B)(i). 
‘‘(C) The quality standards and the per-
formance standards developed by the auction 
expert pursuant to subsection (c)(2)(B)(ii). 
‘‘(D) The calculation of the total market 
capacity of an eligible market area for purposes 
of subsection (d)(5)(C)(i). 
‘‘(E) The methodology developed for an 
adjustment factor applied pursuant to sub-
section (d)(7)(B)(iv). 
‘‘(F) The process for soliciting and accept-
ing bids for purposes of paragraphs (3) and (5) 
of subsection (d). 
‘‘(G) For purposes of subsection (d)(5)— 
‘‘(i) the number of bidders at the auc-
tion; 
‘‘(ii) the number of bids accepted and 
rejected at the auction; and 
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‘‘(iii) with respect to rejected bidders, 
the specific reasons for rejections of any 
bid, and, with respect to any such rejec-
tion, a means of ensuring the availability 
of the process described in paragraph (2) 
to a rejected bidder. 
‘‘(H) The calculation of and compliance 
with the requirement of section 1847(b)(6)(D), 
as made applicable to the market pricing pro-
gram by subsection (e)(4). 
‘‘(2) TRANSPARENT APPEALS PROCESS.— 
‘‘(A) IN GENERAL.—For purposes of com-
plying with paragraph (1)(G)(iii), the Secretary 
shall develop an appeals process under which an 
entity that submits a bid under subsection 
(d)(3)(A) that is rejected for participation in an 
auction may challenge such rejection. 
‘‘(B) TIMELY RESPONSE TO APPEAL.—The 
process established pursuant to subparagraph 
(A) shall include a requirement that the Sec-
retary respond to the rejected entity within 45 
days of submission of an appeal by the entity. 
‘‘(g) RELIANCE ON AUCTION EXPERT AND MARKET 
MONITOR IN ESTABLISHING AND OPERATING MARKET 
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