(1) the Secretary shall include an additional 
amount equal to 1 percent of the total amount of 
such reimbursement to the entity for the purpose of 
defraying administrative expenses; 
(2) such additional amount shall not be counted 
for purposes of the maximum reimbursement 
amount specified in subsections (b)(2)(C) and 
(b)(2)(D); and 
(3) of the amount specified in subsections 
(b)(2)(C) and (b)(2)(D), 100 percent of such 
amount shall be made available to the school or pre-
school program. 
(h) PROCUREMENT.—For purposes of the contract 
required by subsection (a)(3), the following provisions of 
Federal acquisition law shall not apply: 
(1) Title III of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 251 et 
seq.). 
(2) The Office of Federal Procurement Policy 
Act (41 U.S.C. 403 et seq.). 
(3) The Federal Acquisition Streamlining Act 
of 1994 (Public Law 103–355). 
(4) The Competition in Contracting Act. 
(5) Subchapter V of chapter 35 of title 31, re-
lating to the procurement protest system.
(6) The Federal Acquisition Regulation and any 
laws not listed in paragraphs (1) through (5) pro-
viding authority to promulgate regulations in the 
Federal Acquisition Regulation. 
(i) AUDIT.—The Secretary may provide reimburse-
ment under this section to a school or program on behalf 
of a displaced student only if the school or program agrees 
to allow the Secretary to conduct an audit to review and 
verify that the school or program is using the reimburse-
ment in accordance with subsection (b)(3). 
(j) NONDISCRIMINATION.— 
(1) IN GENERAL.—The Secretary may provide 
reimbursement under this section to a school or pre-
school program only if the school or program agrees 
not to discriminate against participating displaced 
students (including applicants) on the basis of race, 
color, national origin, religion, or sex. 
(2) APPLICABILITY AND SINGLE SEX SCHOOLS, 
CLASSES, OR ACTIVITIES.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, the prohibition of sex 
discrimination in paragraph (1) shall not apply 
to a school or preschool program that is oper-
ated by, supervised by, controlled by, or con-
nected to a religious organization to the extent
that the application of paragraph (1) is incon-
sistent with the religious tenets or beliefs of the 
school or program. 
(B) SINGLE SEX SCHOOLS, CLASSES, OR 
ACTIVITIES.—Notwithstanding paragraph (1) or 
any other provision of law, a parent may choose 
and a school may offer a single sex school, 
class, or activity. 
(3) CHILDREN
WITH
DISABILITIES.—Nothing 
in this section may be construed to alter or modify 
the provisions of the Individuals with Disabilities 
Education Act. 
(4) RELIGIOUSLY AFFILIATED SCHOOLS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, a school or preschool 
program receiving reimbursement under this 
section that is operated by, supervised by, con-
trolled by, or connected to, a religious organiza-
tion may exercise its right in matters of em-
ployment consistent with title VII of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e–1 et 
seq.), including the exemptions in such title. 
(B) MAINTENANCE
OF
PURPOSE.—Not-
withstanding any other provision of law, funds 
made available under this section on behalf of