H. R. 1530—457
of retaining the investment banker may be paid out of the proceeds
of the sale of the reserve.
(2) Not later than six months after the effective date, the
investment banker retained under paragraph (1) shall complete
a draft contract or contracts for the sale of Naval Petroleum Reserve
Numbered 1, which shall accompany the solicitation of offers and
describe the terms and provisions of the sale of the interest of
the United States in the reserve.
(3) The draft contract or contracts shall identify—
(A) all equipment and facilities to be included in the sale;
and
(B) any potential claim or liability (including liability for
environmental restoration and remediation), and the extent
of any such claim or liability, for which the United States
is responsible under subsection (g).
(4) The draft contract or contracts, including the terms and
provisions of the sale of the interest of the United States in the
reserve, shall be subject to review and approval by the Secretary,
the Secretary of the Treasury, and the Director of the Office of
Management and Budget. Each of those officials shall complete
the review of, and approve or disapprove, the draft contract or
contracts not later than seven months after the effective date.
(f) SOLICITATION OF OFFERS.—(1) Not later than seven months
after the effective date, the Secretary shall publish the solicitation
of offers for Naval Petroleum Reserve Numbered 1.
(2) Not later than 10 months after the effective date, the
Secretary shall identify the highest responsible offer or offers for
purchase of the interest of the United States in Naval Petroleum
Reserve Numbered 1 that, in total, meet or exceed the minimum
acceptable price determined under subsection (d)(3).
(3) The Secretary shall take such action immediately after
the effective date as is necessary to obtain from an independent
petroleum engineer within six months after that date a reserve
report prepared in a manner consistent with commercial practices.
The Secretary shall use the reserve report in support of the prepara-
tion of the solicitation of offers for the reserve.
(g) FUTURE LIABILITIES.—To effectuate the sale of the interest
of the United States in Naval Petroleum Reserve Numbered 1,
the Secretary may extend such indemnities and warranties as the
Secretary considers reasonable and necessary to protect the pur-
chaser from claims arising from the ownership in the reserve by
the United States.
(h) MAINTAINING PRODUCTION.—Until the sale of Naval Petro-
leum Reserve Numbered 1 is completed under this section, the
Secretary shall continue to produce the reserve at the maximum
daily oil or gas rate from a reservoir, which will permit maximum
economic development of the reservoir consistent with sound oil
field engineering practices in accordance with section 3 of the unit
plan contract.
(i) NONCOMPLIANCE WITH DEADLINES.—At any time during the
one-year period beginning on the effective date, if the Secretary
determines that the actions necessary to complete the sale of the
reserve within that period are not being taken or timely completed,
the Secretary shall transmit to the appropriate congressional
committees a written notification of that determination together
with a plan setting forth the actions that will be taken to ensure
that the sale of the reserve will be completed within that period.
H. R. 1530—458
The Secretary shall consult with the Director of the Office of
Management and Budget in preparing the plan for submission
to the committees.
(j) OVERSIGHT.—The Comptroller General shall monitor the
actions of the Secretary relating to the sale of the reserve and
report to the appropriate congressional committees any findings
on such actions that the Comptroller General considers appropriate
to report to the committees.
(k) ACQUISITION OF SERVICES.—The Secretary may enter into
contracts for the acquisition of services required under this section
under the authority of paragraph (7) of section 303(c) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)),
except that the notification required under subparagraph (B) of
such paragraph for each contract shall be submitted to Congress
not less than 7 days before the award of the contract.
SEC. 3413. EFFECT OF SALE OF RESERVE.
(a) EFFECT ON EXISTING CONTRACTS.—(1) In the case of any
contract, in effect on the effective date, for the purchase of produc-
tion from any part of the United States’ share of Naval Petroleum
Reserve Numbered 1, the sale of the interest of the United States
in the reserve shall be subject to the contract for a period of
three months after the closing date of the sale or until termination
of the contract, whichever occurs first. The term of any contract
entered into after the effective date for the purchase of the produc-
tion shall not exceed the anticipated closing date for the sale of
the reserve.
(2) The Secretary shall exercise the termination procedures
provided in the contract between the United States and Bechtel
Petroleum Operation, Inc., Contract Number DE–ACO1–85FE60520
so that the contract terminates not later than the date of closing
of the sale of Naval Petroleum Reserve Numbered 1 under section
3412.
(3) The Secretary shall exercise the termination procedures
provided in the unit plan contract so that the unit plan contract
terminates not later than the date of closing of the sale of reserve.
(b) EFFECT ON ANTITRUST LAWS.—Nothing in this subtitle shall
be construed to alter the application of the antitrust laws of the
United States to the purchaser or purchasers (as the case may
be) of Naval Petroleum Reserve Numbered 1 or to the lands in
the reserve subject to sale under section 3412 upon the completion
of the sale.
(c) PRESERVATION OF PRIVATE RIGHT, TITLE, AND INTEREST.—
Nothing in this subtitle shall be construed to adversely affect the
ownership interest of any other entity having any right, title, and
interest in and to lands within the boundaries of Naval Petroleum
Reserve Numbered 1 and which are subject to the unit plan con-
tract.
(d) TRANSFER OF OTHERWISE NONTRANSFERABLE PERMIT.—The
Secretary may transfer to the purchaser or purchasers (as the
case may be) of Naval Petroleum Reserve Numbered 1 the incidental
take permit regarding the reserve issued to the Secretary by the
United States Fish and Wildlife Service and in effect on the effective
date if the Secretary determines that transfer of the permit is
necessary to expedite the sale of the reserve in a manner that
maximizes the value of the sale to the United States. The trans-
ferred permit shall cover the identical activities, and shall be subject
H. R. 1530—459
to the same terms and conditions, as apply to the permit at the
time of the transfer.
SEC. 3414. CONDITIONS ON SALE PROCESS.
(a) NOTICE REGARDING SALE CONDITIONS.—The Secretary may
not enter into any contract for the sale of Naval Petroleum Reserve
Numbered 1 under section 3412 until the end of the 31-day period
beginning on the date on which the Secretary submits to the appro-
priate congressional committees a written notification—
(1) describing the conditions of the proposed sale; and
(2) containing an assessment by the Secretary of whether
it is in the best interests of the United States to sell the
reserve under such conditions.
(b) AUTHORITY TO SUSPEND SALE.—(1) The Secretary may sus-
pend the sale of Naval Petroleum Reserve Numbered 1 under
section 3412 if the Secretary and the Director of the Office of
Management and Budget jointly determine that—
(A) the sale is proceeding in a manner inconsistent with
achievement of a sale price that reflects the full value of the
reserve; or
(B) a course of action other than the immediate sale of
the reserve is in the best interests of the United States.
(2) Immediately after making a determination under paragraph
(1) to suspend the sale of Naval Petroleum Reserve Numbered
1, the Secretary shall submit to the appropriate congressional
committees a written notification describing the basis for the deter-
mination and requesting a reconsideration of the merits of the
sale of the reserve.
(c) EFFECT OF RECONSIDERATION NOTICE.—After the Secretary
submits a notification under subsection (b), the Secretary may
not complete the sale of Naval Petroleum Reserve Numbered 1
under section 3412 or any other provision of law unless the sale
of the reserve is authorized in an Act of Congress enacted after
the date of the submission of the notification.
SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING
RESERVE.
(a) RESERVATION OF FUNDS.—After the costs incurred in the
conduct of the sale of Naval Petroleum Reserve Numbered 1 under
section 3412 are deducted, nine percent of the remaining proceeds
from the sale of the reserve shall be reserved in a contingent
fund in the Treasury for payment to the State of California for
the Teachers’ Retirement Fund of the State in the event that,
and to the extent that, the claims of the State against the United
States regarding production and proceeds of sale from Naval Petro-
leum Reserve Numbered 1 are—
(1) settled by agreement with the United States under
subsection (c); or
(2) finally resolved in favor of the State by a court of
competent jurisdiction, if a settlement agreement is not reached.
(b) DISPOSITION OF FUNDS.—In such amounts as may be pro-
vided in appropriation Acts, amounts in the contingent fund shall
be available for paying a claim described in subsection (a). After
final disposition of the claims, any unobligated balance in the
contingent fund shall be credited to the general fund of the Treas-
ury. If no payment is made from the contingent fund within 10
years after the effective date, amounts in the contingent fund shall
be credited to the general fund of the Treasury.
H. R. 1530—460
(c) SETTLEMENT OFFER.—Not later than 30 days after the date
of the sale of Naval Petroleum Reserve Numbered 1 under section
3412, the Secretary shall offer to settle all claims of the State
of California against the United States with respect to lands in
the reserve located in sections 16 and 36 of township 30 south,
range 23 east, Mount Diablo Principal Meridian, California, and
production or proceeds of sale from the reserve, in order to provide
proper compensation for the State’s claims. The Secretary shall
base the amount of the offered settlement payment from the contin-
gent fund on the fair value for the State’s claims, including the
mineral estate, not to exceed the amount reserved in the contingent
fund.
(d) RELEASE OF CLAIMS.—Acceptance of the settlement offer
made under subsection (c) shall be subject to the condition that
all claims against the United States by the State of California
for the Teachers’ Retirement Fund of the State be released with
respect to lands in Naval Petroleum Reserve Numbered 1, including
sections 16 and 36 of township 30 south, range 23 east, Mount
Diablo Principal Meridian, California, or production or proceeds
of sale from the reserve.
SEC. 3416. STUDY 
OF 
FUTURE 
OF 
OTHER 
NAVAL 
PETROLEUM
RESERVES.
(a) STUDY REQUIRED.—The Secretary of Energy shall conduct
a study to determine which of the following options, or combinations
of options, regarding the naval petroleum reserves (other than
Naval Petroleum Reserve Numbered 1) would maximize the value
of the reserves to the United States:
(1) Retention and operation of the naval petroleum reserves
by the Secretary under chapter 641 of title 10, United States
Code.
(2) Transfer of all or a part of the naval petroleum reserves
to the jurisdiction of another Federal agency for administration
under chapter 641 of title 10, United States Code.
(3) Transfer of all or a part of the naval petroleum reserves
to the Department of the Interior for leasing in accordance
with the Mineral Leasing Act (30 U.S.C. 181 et seq.) and
surface management in accordance with the Federal Land Pol-
icy and Management Act (43 U.S.C. 1701 et seq.).
(4) Sale of the interest of the United States in the naval
petroleum reserves.
(b) CONDUCT
OF
STUDY.—The Secretary shall retain an
independent petroleum consultant to conduct the study.
(c) CONSIDERATIONS UNDER STUDY.—An examination of the
value to be derived by the United States from the transfer or
sale of the naval petroleum reserves shall include an assessment
and estimate of the fair market value of the interest of the United
States in the naval petroleum reserves. The assessment and esti-
mate shall be made in a manner consistent with customary property
valuation practices in the oil and gas industry.
(d) REPORT AND RECOMMENDATIONS REGARDING STUDY.—Not
later than June 1, 1996, the Secretary shall submit to Congress
a report describing the results of the study and containing such
recommendations (including proposed legislation) as the Secretary
considers necessary to implement the option, or combination of
options, identified in the study that would maximize the value
of the naval petroleum reserves to the United States.
H. R. 1530—461
TITLE XXXV—PANAMA CANAL
COMMISSION
Subtitle A—Authorization of
Appropriations
SEC. 3501. SHORT TITLE.
This subtitle may be cited as the ‘‘Panama Canal Commission
Authorization Act for Fiscal Year 1996’’.
SEC. 3502. AUTHORIZATION OF EXPENDITURES.
(a) IN GENERAL.—Subject to subsection (b), the Panama Canal
Commission is authorized to make such expenditures within the
limits of funds and borrowing authority available to it in accordance
with law, and to make such contracts and commitments without
regard to fiscal year limitations, as may be necessary under the
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) for the operation,
maintenance, and improvement of the Panama Canal for fiscal
year 1996.
(b) LIMITATIONS.—For fiscal year 1996, the Panama Canal
Commission may expend from funds in the Panama Canal Revolving
Fund not more than $50,741,000 for administrative expenses, of
which—
(1) not more than $15,000 may be used for official reception
and representation expenses of the Supervisory Board of the
Commission;
(2) not more than $10,000 may be used for official reception
and representation expenses of the Secretary of the Commis-
sion; and
(3) not more than $45,000 may be used for official reception
and representation expenses of the Administrator of the
Commission.
(c) REPLACEMENT VEHICLES.—Funds available to the Panama
Canal Commission shall be available for the purchase of not to
exceed 38 passenger motor vehicles (including large heavy-duty
vehicles to be used to transport Commission personnel across the
isthmus of Panama) at a cost per vehicle of not more than $19,500.
A vehicle may be purchased with such funds only as necessary
to replace another passenger motor vehicle of the Commission.
SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER LAWS.
Expenditures authorized under this subtitle may be made only
in accordance with the Panama Canal Treaties of 1977 and any
law of the United States implementing those treaties.
Subtitle B—Reconstitution of Commission
as Government Corporation
SEC. 3521. SHORT TITLE.
This subtitle may be cited as the ‘‘Panama Canal Amendments
Act of 1995’’.
H. R. 1530—462
SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERNMENT COR-
PORATION.
(a) IN GENERAL.—Section 1101 of the Panama Canal Act of
1979 (22 U.S.C. 3611) is amended to read as follows:
‘‘ESTABLISHMENT, PURPOSES, OFFICES, AND RESIDENCE OF
COMMISSION
‘‘SEC. 1101. (a) For the purposes of managing, operating, and
maintaining the Panama Canal and its complementary works,
installations and equipment, and of conducting operations incident
thereto, in accordance with the Panama Canal Treaty of 1977
and related agreements, the Panama Canal Commission (herein-
after in this Act referred to as the ‘Commission’) is established
as a wholly owned government corporation (as that term is used
in chapter 91 of title 31, United States Code) within the executive
branch of the Government of the United States. The authority
of the President with respect to the Commission shall be exercised
through the Secretary of Defense.
‘‘(b) The principal office of the Commission shall be located
in the Republic of Panama in one of the areas made available
for use of the United States under the Panama Canal Treaty
of 1977 and related agreements, but the Commission may establish
branch offices in such other places as it considers necessary or
appropriate for the conduct of its business. Within the meaning
of the laws of the United States relating to venue in civil actions,
the Commission is an inhabitant and resident of the District of
Columbia and the eastern judicial district of Louisiana.’’.
(b) CLERICAL AMENDMENT.—The item relating to such section
in the table of contents in section 1 of such Act is amended to
read as follows:
‘‘1101. Establishment, Purposes, Offices, and Residence of Commission.’’.
SEC. 3523. SUPERVISORY BOARD.
Section 1102 of the Panama Canal Act of 1979 (22 U.S.C.
3612) is amended by striking out so much as precedes subsection
(b) and inserting in lieu thereof the following:
‘‘SUPERVISORY BOARD
‘‘SEC. 1102. (a) The Commission shall be supervised by a Board
composed of nine members, one of whom shall be the Secretary
of Defense or an officer of the Department of Defense designated
by the Secretary. Not less than five members of the Board shall
be nationals of the United States and the remaining members
of the Board shall be nationals of the Republic of Panama. Three
members of the Board who are nationals of the United States
shall hold no other office in, and shall not be employed by, the
Government of the United States, and shall be chosen for the
independent perspective they can bring to the Commission’s affairs.
Members of the Board who are nationals of the United States
shall cast their votes as directed by the Secretary of Defense or
a designee of the Secretary of Defense.’’.
SEC. 3524. GENERAL AND SPECIFIC POWERS OF COMMISSION.
(a) IN GENERAL.—The Panama Canal Act of 1979 (22 U.S.C.
3601 et seq.) is amended by inserting after section 1102 the follow-
ing new sections:
H. R. 1530—463
‘‘GENERAL POWERS OF COMMISSION
‘‘SEC. 1102a. (a) The Commission may adopt, alter, and use
a corporate seal, which shall be judicially noticed.
‘‘(b) The Commission may by action of the Board of Directors
adopt, amend, and repeal bylaws governing the conduct of its gen-
eral business and the performance of the powers and duties granted
to or imposed upon it by law.
‘‘(c) The Commission may sue and be sued in its corporate
name, except that—
‘‘(1) the amenability of the Commission to suit is limited
by Article VIII of the Panama Canal Treaty of 1977, section
1401 of this Act, and otherwise by law;
‘‘(2) an attachment, garnishment, or similar process may
not be issued against salaries or other moneys owed by the
Commission to its employees except as provided by section
5520a of title 5, United States Code, and sections 459, 461,
and 462 of the Social Security Act (42 U.S.C. 659, 661, 662),
or as otherwise specifically authorized by the laws of the United
States; and
‘‘(3) the Commission is exempt from the payment of interest
on claims and judgments.
‘‘(d) The Commission may enter into contracts, leases, agree-
ments, or other transactions.
‘‘(e) The Commission—
‘‘(1) may determine the character of, and necessity for,
its obligations and expenditures and the manner in which they
shall be incurred, allowed, and paid; and
‘‘(2) may incur, allow, and pay its obligations and expendi-
tures, subject to pertinent provisions of law generally applicable
to Government corporations.
‘‘(f) The Commission shall have the priority of the Government
of the United States in the payment of debts out of bankrupt
estates.
‘‘(g) The authority of the Commission under this section and
section 1102B is subject to the Panama Canal Treaty of 1977
and related agreements, and to chapter 91 of title 31, United
States Code.
‘‘SPECIFIC POWERS OF COMMISSION
‘‘SEC. 1102b. (a) The Commission may manage, operate, and
maintain the Panama Canal.
‘‘(b) The Commission may construct or acquire, establish, main-
tain, and operate such activities, facilities, and appurtenances as
necessary and appropriate for the accomplishment of the purposes
of this Act, including the following:
‘‘(1) Docks, wharves, piers, and other shoreline facilities.
‘‘(2) Shops and yards.
‘‘(3) Marine railways, salvage and towing facilities, fuel-
handling facilities, and motor transportation facilities.
‘‘(4) Power systems, water systems, and a telephone system.
‘‘(5) Construction facilities.
‘‘(6) Living quarters and other buildings.
‘‘(7) Warehouses, storehouses, a printing plant, and manu-
facturing, processing, or service facilities in connection there-
with.
‘‘(8) Recreational facilities.
H. R. 1530—464
‘‘(c) The Commission may use the United States mails in the
same manner and under the same conditions as the executive
departments of the Federal Government.
‘‘(d) The Commission may take such actions as are necessary
or appropriate to carry out the powers specifically conferred upon
it.’’.
(b) CLERICAL AMENDMENT.—The table of contents in section
1 of such Act is amended by inserting after the item relating
to section 1102 the following new items:
‘‘1102a. General powers of Commission.
‘‘1102b. Specific powers of Commission.’’.
SEC. 3525. CONGRESSIONAL REVIEW OF BUDGET.
Section 1302 of the Panama Canal Act of 1979 (22 U.S.C.
3712) is amended—
(1) in subsection (c)—
(A) by striking out ‘‘and subject to paragraph (2)’’ in
paragraph (1);
(B) by striking out paragraph (2); and
(C) by redesignating paragraph (3) as paragraph (2);
and
(2) by striking out subsection (e) and inserting in lieu
thereof the following new subsection (e):
‘‘(e) In accordance with section 9104 of title 31, United States
Code, Congress shall review the annual budget of the Commission.’’.
SEC. 3526. AUDITS.
(a) IN GENERAL.—Section 1313 of the Panama Canal Act of
1979 (22 U.S.C. 3723) is amended—
(1) by striking out the heading for the section and inserting
in lieu thereof the following: ‘‘AUDITS’’;
(2) in subsection (a)—
(A) by striking out ‘‘Financial transactions’’ and insert-
ing in lieu thereof ‘‘Notwithstanding any other provision
of law, and subject to subsection (d), financial transactions’’;
(B) by striking out ‘‘pursuant to the Accounting and
Auditing Act of 1950 (31 U.S.C. 65 et seq.)’’;
(C) by striking out ‘‘audit pursuant to such Act’’ in
the second sentence and inserting in lieu thereof ‘‘such
audit’’;
(D) by striking out ‘‘An audit pursuant to such Act’’
in the last sentence and inserting in lieu thereof ‘‘Any
such audit’’; and
(E) by adding at the end the following new sentence:
‘‘An audit performed under this section is subject to the
requirements of paragraphs (2), (3), and (5) of section
9105(a) of title 31, United States Code.’’;
(3) in subsection (b), by striking out ‘‘The Comptroller
General’’ in the first sentence and inserting in lieu thereof
‘‘Subject to subsection (d), the Comptroller General’’; and
(4) by adding at the end the following new subsections:
‘‘(d) At the discretion of the Board provided for in section
1102, the Commission may hire independent auditors to perform,
in lieu of the Comptroller General, the audit and reporting functions
prescribed in subsections (a) and (b).
‘‘(e) In addition to auditing the financial statements of the
Commission, the Comptroller General (or the independent auditor
if one is employed pursuant to subsection (d)) shall, in accordance
H. R. 1530—465
with standards for an examination of a financial forecast established
by the American Institute of Certified Public Accountants, examine
and report on the Commission’s financial forecast that it will be
in a position to meet its financial liabilities on December 31, 1999.’’.
(b) CLERICAL AMENDMENT.—The item relating to such section
in the table of contents in section 1 of such Act is amended to
read as follows:
‘‘1313. Audits.’’.
SEC. 3527. PRESCRIPTION OF MEASUREMENT RULES AND RATES OF
TOLLS.
Section 1601 of the Panama Canal Act of 1979 (22 U.S.C.
3791) is amended to read as follows:
‘‘PRESCRIPTION OF MEASUREMENT RULES AND RATES OF TOLLS
‘‘SEC. 1601. The Commission may, subject to the provisions
of this Act, prescribe and from time to time change—
‘‘(1) the rules for the measurement of vessels for the Pan-
ama Canal; and
‘‘(2) the tolls that shall be levied for use of the Panama
Canal.’’.
SEC. 3528. PROCEDURES FOR CHANGES IN RULES OF MEASUREMENT
AND RATES OF TOLLS.
Section 1604 of the Panama Canal Act of 1979 (22 U.S.C.
3794) is amended—
(1) in subsection (a), by striking out ‘‘1601(a)’’ in the first
sentence and inserting in lieu thereof ‘‘1601’’;
(2) by striking out subsection (c) and inserting in lieu
thereof the following new subsection (c):
‘‘(c) After the proceedings have been conducted pursuant to
subsections (a) and (b), the Commission may change the rules
of measurement or rates of tolls, as the case may be. The Commis-
sion shall publish notice of any such change in the Federal Register
not less than 30 days before the effective date of the change.’’;
and
(3) by striking out subsections (d) and (e) and redesignating
subsection (f) as subsection (d).
SEC. 3529. MISCELLANEOUS TECHNICAL AMENDMENTS.
The Panama Canal Act of 1979 is amended—
(1) in section 1205 (22 U.S.C. 3645), by striking out ‘‘appro-
priation’’ in the last sentence and inserting in lieu thereof
‘‘fund’’;
(2) in section 1303 (22 U.S.C. 3713), by striking out ‘‘The
authority of this section may not be used for administrative
expenses.’’;
(3) in section 1321(d) (22 U.S.C. 3731(d)), by striking out
‘‘appropriations or’’ in the second sentence;
(4) in section 1401(c) (22 U.S.C. 3761(c)), by striking out
‘‘appropriated for or’’ in the first sentence;
(5) in section 1415 (22 U.S.C. 3775), by striking out ‘‘appro-
priated or’’ in the second sentence; and
(6) in section 1416 (22 U.S.C. 3776), by striking out ‘‘appro-
priated or’’ in the third sentence.
H. R. 1530—466
SEC. 3530. CONFORMING AMENDMENT TO TITLE 31, UNITED STATES
CODE.
Section 9101(3) of title 31, United States Code, is amended
by adding at the end the following:
‘‘(P) the Panama Canal Commission.’’.
DIVISION D—FEDERAL ACQUISITION
REFORM
SEC. 4001. SHORT TITLE.
This division may be cited as the ‘‘Federal Acquisition Reform
Act of 1995’’.
TITLE XLI—COMPETITION
SEC. 4101. EFFICIENT COMPETITION.
(a) ARMED SERVICES ACQUISITIONS.—Section 2304 of title 10,
United States Code, is amended—
(1) by redesignating subsection (j) as subsection (k); and
(2) by inserting after subsection (i) the following new sub-
section (j):
‘‘(j) 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 Government’s requirements.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303 of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253)
is amended—
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new sub-
section (h):
‘‘(h) 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 Government’s requirements.’’.
(c) REVISIONS TO NOTICE THRESHOLDS.—Section 18(a)(1)(B) of
the Office of Federal Procurement Policy Act (41 U.S.C. 416(a)(1)(B))
is amended—
(A) by striking out ‘‘subsection (f)—’’ and all that follows
through the end of the subparagraph and inserting in lieu
thereof ‘‘subsection (b); and’’; and
(B) by inserting after ‘‘property or services’’ the following:
‘‘for a price expected to exceed $10,000, but not to exceed
$25,000,’’.
SEC. 4102. EFFICIENT APPROVAL PROCEDURES.
(a) ARMED SERVICES ACQUISITIONS.—Section 2304(f)(1)(B) of
title 10, United States Code, is amended—
(1) in clause (i)—
(A) by striking out ‘‘$100,000 (but equal to or less
than $1,000,000)’’ and inserting in lieu thereof ‘‘$500,000
(but equal to or less than $10,000,000)’’; and
(B) by striking out ‘‘(ii), (iii), or (iv)’’ and inserting
in lieu thereof ‘‘(ii) or (iii)’’;
(2) in clause (ii)—
H. R. 1530—468
SEC. 4104. PREAWARD DEBRIEFINGS.
(a) ARMED SERVICES ACQUISITIONS.—Section 2305(b) of title
10, United States Code, is amended—
(1) by striking out subparagraph (F) of paragraph (5);
(2) by redesignating paragraph (6) as paragraph (9); and
(3) by inserting after paragraph (5) the following new
paragraphs:
‘‘(6)(A) When the contracting officer excludes an offeror submit-
ting a competitive proposal from the competitive range (or otherwise
excludes such an offeror from further consideration prior to the
final source selection decision), the excluded offeror may request
in writing, within three days after the date on which the excluded
offeror receives notice of its exclusion, a debriefing prior to award.
The contracting officer shall make every effort to debrief the
unsuccessful offeror as soon as practicable but may refuse the
request for a debriefing if it is not in the best interests of the
Government to conduct a debriefing at that time.
‘‘(B) The contracting officer is required to debrief an excluded
offeror in accordance with paragraph (5) of this section only if
that offeror requested and was refused a preaward debriefing under
subparagraph (A) of this paragraph.
‘‘(C) The debriefing conducted under this subsection shall
include—
‘‘(i) the executive agency’s evaluation of the significant
elements in the offeror’s offer;
‘‘(ii) a summary of the rationale for the offeror’s exclusion;
and
‘‘(iii) reasonable responses to relevant questions posed by
the debriefed offeror as to whether source selection procedures
set forth in the solicitation, applicable regulations, and other
applicable authorities were followed by the executive agency.
‘‘(D) The debriefing conducted pursuant to this subsection may
not disclose the number or identity of other offerors and shall
not disclose information about the content, ranking, or evaluation
of other offerors’ proposals.
‘‘(7) The contracting officer shall include a summary of any
debriefing conducted under paragraph (5) or (6) in the contract
file.
‘‘(8) The Federal Acquisition Regulation shall include a provi-
sion encouraging the use of alternative dispute resolution tech-
niques to provide informal, expeditious, and inexpensive procedures
for an offeror to consider using before filing a protest, prior to
the award of a contract, of the exclusion of the offeror from the
competitive range (or otherwise from further consideration) for that
contract.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B of the Fed-
eral Property and Administrative Services Act of 1949 (41 U.S.C.
253b) is amended—
(1) by striking out paragraph (6) of subsection (e);
(2) by redesignating subsections (f), (g), (h), and (i) as
subsections (i), (j), (k), and (l), respectively; and
(3) by inserting after subsection (e) the following new
subsections:
‘‘(f)(1) When the contracting officer excludes an offeror submit-
ting a competitive proposal from the competitive range (or otherwise
excludes such an offeror from further consideration prior to the
final source selection decision), the excluded offeror may request
H. R. 1530—469
in writing, within 3 days after the date on which the excluded
offeror receives notice of its exclusion, a debriefing prior to award.
The contracting officer shall make every effort to debrief the
unsuccessful offeror as soon as practicable but may refuse the
request for a debriefing if it is not in the best interests of the
Government to conduct a debriefing at that time.
‘‘(2) The contracting officer is required to debrief an excluded
offeror in accordance with subsection (e) of this section only if
that offeror requested and was refused a preaward debriefing under
paragraph (1) of this subsection.
‘‘(3) The debriefing conducted under this subsection shall
include—
‘‘(A) the executive agency’s evaluation of the significant
elements in the offeror’s offer;
‘‘(B) a summary of the rationale for the offeror’s exclusion;
and
‘‘(C) reasonable responses to relevant questions posed by
the debriefed offeror as to whether source selection procedures
set forth in the solicitation, applicable regulations, and other
applicable authorities were followed by the executive agency.
‘‘(4) The debriefing conducted pursuant to this subsection may
not disclose the number or identity of other offerors and shall
not disclose information about the content, ranking, or evaluation
of other offerors’ proposals.
‘‘(g) The contracting officer shall include a summary of any
debriefing conducted under subsection (e) or (f) in the contract
file.
‘‘(h) The Federal Acquisition Regulation shall include a provi-
sion encouraging the use of alternative dispute resolution tech-
niques to provide informal, expeditious, and inexpensive procedures
for an offeror to consider using before filing a protest, prior to
the award of a contract, of the exclusion of the offeror from the
competitive range (or otherwise from further consideration) for that
contract.’’.
SEC. 4105. DESIGN-BUILD SELECTION PROCEDURES.
(a) ARMED SERVICES ACQUISITIONS.—(1) Chapter 137 of title
10, United States Code, is amended by inserting after section 2305
the following new section:
‘‘§ 2305a. Design-build selection procedures
‘‘(a) 
AUTHORIZATION.—Unless 
the 
traditional 
acquisition
approach of design-bid-build established under the Brooks Architect-
Engineers Act (41 U.S.C. 541 et seq.) is used or another acquisition
procedure authorized by law is used, the head of an agency shall
use the two-phase selection procedures authorized in this section
for entering into a contract for the design and construction of
a public building, facility, or work when a determination is made
under subsection (b) that the procedures are appropriate for use.
‘‘(b) CRITERIA FOR USE.—A contracting officer shall make a
determination whether two-phase selection procedures are appro-
priate for use for entering into a contract for the design and
construction of a public building, facility, or work when the contract-
ing officer anticipates that three or more offers will be received
for such contract, design work must be performed before an offeror
can develop a price or cost proposal for such contract, the offeror
will incur a substantial amount of expense in preparing the offer,
H. R. 1530—470
and the contracting officer has considered information such as the
following:
‘‘(1) The extent to which the project requirements have
been adequately defined.
‘‘(2) The time constraints for delivery of the project.
‘‘(3) The capability and experience of potential contractors.
‘‘(4) The suitability of the project for use of the two-phase
selection procedures.
‘‘(5) The capability of the agency to manage the two-phase
selection process.
‘‘(6) Other criteria established by the agency.
‘‘(c) PROCEDURES DESCRIBED.—Two-phase selection procedures
consist of the following:
‘‘(1) The agency develops, either in-house or by contract,
a scope of work statement for inclusion in the solicitation
that defines the project and provides prospective offerors with
sufficient information regarding the Government’s require-
ments (which may include criteria and preliminary design,
budget parameters, and schedule or delivery requirements) to
enable the offerors to submit proposals which meet the Govern-
ment’s needs. If the agency contracts for development of the
scope of work statement, the agency shall contract for architec-
tural and engineering services as defined by and in accordance
with the Brooks Architect-Engineers Act (40 U.S.C. 541 et
seq.).
‘‘(2) The contracting officer solicits phase-one proposals
that—
‘‘(A) include information on the offeror’s—
‘‘(i) technical approach; and
‘‘(ii) technical qualifications; and
‘‘(B) do not include—
‘‘(i) detailed design information; or
‘‘(ii) cost or price information.
‘‘(3) The evaluation factors to be used in evaluating phase-
one proposals are stated in the solicitation and include special-
ized experience and technical competence, capability to perform,
past performance of the offeror’s team (including the architect-
engineer and construction members of the team) and other
appropriate factors, except that cost-related or price-related
evaluation factors are not permitted. Each solicitation estab-
lishes the relative importance assigned to the evaluation factors
and subfactors that must be considered in the evaluation of
phase-one proposals. The agency evaluates phase-one proposals
on the basis of the phase-one evaluation factors set forth in
the solicitation.
‘‘(4) The contracting officer selects as the most highly quali-
fied the number of offerors specified in the solicitation to pro-
vide the property or services under the contract and requests
the selected offerors to submit phase-two competitive proposals
that include technical proposals and cost or price information.
Each solicitation establishes with respect to phase two—
‘‘(A) the technical submission for the proposal, includ-
ing design concepts or proposed solutions to requirements
addressed within the scope of work (or both), and
‘‘(B) the evaluation factors and subfactors, including
cost or price, that must be considered in the evaluations
H. R. 1530—471
of proposals in accordance with paragraphs (2), (3), and
(4) of section 2305(a) of this title.
The contracting officer separately evaluates the submissions
described in subparagraphs (A) and (B).
‘‘(5) The agency awards the contract in accordance with
section 2305(b)(4) of this title.
‘‘(d) SOLICITATION
TO STATE NUMBER
OF OFFERORS TO BE
SELECTED FOR PHASE TWO REQUESTS FOR COMPETITIVE PROPOS-
ALS.—A solicitation issued pursuant to the procedures described
in subsection (c) shall state the maximum number of offerors that
are to be selected to submit competitive proposals pursuant to
subsection (c)(4). The maximum number specified in the solicitation
shall not exceed 5 unless the agency determines with respect to
an individual solicitation that a specified number greater than
5 is in the Government’s interest and is consistent with the purposes
and objectives of the two-phase selection process.
‘‘(e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Fed-
eral Acquisition Regulation shall include guidance—
‘‘(1) regarding the factors that may be considered in deter-
mining whether the two-phase contracting procedures author-
ized by subsection (a) are appropriate for use in individual
contracting situations;
‘‘(2) regarding the factors that may be used in selecting
contractors; and
‘‘(3) providing for a uniform approach to be used Govern-
ment-wide.’’.
(2) The table of sections at the beginning of chapter 137 of
such title is amended by adding after the item relating to section
2305 the following new item:
‘‘2305a. Design-build selection procedures.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) 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 303L the following
new section:
‘‘SEC. 303M. DESIGN-BUILD SELECTION PROCEDURES.
‘‘(a) 
AUTHORIZATION.—Unless 
the 
traditional 
acquisition
approach of design-bid-build established under the Brooks Architect-
Engineers Act (title IX of this Act) is used or another acquisition
procedure authorized by law is used, the head of an executive
agency shall use the two-phase selection procedures authorized
in this section for entering into a contract for the design and
construction of a public building, facility, or work when a determina-
tion is made under subsection (b) that the procedures are appro-
priate for use.
‘‘(b) CRITERIA FOR USE.—A contracting officer shall make a
determination whether two-phase selection procedures are appro-
priate for use for entering into a contract for the design and
construction of a public building, facility, or work when the contract-
ing officer anticipates that three or more offers will be received
for such contract, design work must be performed before an offeror
can develop a price or cost proposal for such contract, the offeror
will incur a substantial amount of expense in preparing the offer,
and the contracting officer has considered information such as the
following:
‘‘(1) The extent to which the project requirements have
been adequately defined.