HR 1107 RH 
contractors, the Federal Acquisition Regulation shall provide for special 
simplified procedures for purchases of property and services for amounts— 
(1) not greater than the simplified acquisition threshold; and 
(2) greater than the simplified acquisition threshold but not greater 
than $5,000,000 for which the contracting officer reasonably expects, 
based on the nature of the property or services 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 simplified ac-
quisition procedures, the head of an executive agency shall promote competi-
tion to the maximum extent practicable. 
(d) CONSIDERATION OF OFFERS TIMELY RECEIVED.—The simplified ac-
quisition procedures contained in the Federal Acquisition Regulation 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 Acquisition 
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 respon-
sible 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 pro-
cedures used in awarding the contract and the number of offers re-
ceived. 
§ 1902. Procedures applicable to purchases below micro-pur-
chase threshold 
(a) DEFINITION.—For purposes of this section, the micro-purchase 
threshold is $2,500. 
(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 
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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 Acquisition 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 pur-
chases without securing competitive quotations does not apply to a pur-
chase 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 $2,500 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 reason-
able. 
(e) EQUITABLE DISTRIBUTION.—Purchases not greater than $2,500 shall 
be distributed equitably among qualified suppliers. 
(f) IMPLEMENTATION THROUGH FEDERAL ACQUISITION REGULATION.— 
This section shall be implemented through the Federal Acquisition Regula-
tion. 
§ 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, biologi-
cal, 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 per-
formed, or purchase to be made, in the United States; and 
(B) $25,000 in the case of a contract to be awarded and per-
formed, or purchase to be made, outside the United States; 
(2) the term ‘‘simplified acquisition threshold’’ means— 
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(A) $250,000 in the case of a contract to be awarded and per-
formed, or purchase to be made, in the United States; and 
(B) $1,000,000 in the case of a contract to be awarded and per-
formed, 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 RE-
QUIREMENTS.—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, and development 
projects that are necessary to the responsibilities of the executive agen-
cy in the field of research and development and have the potential to 
facilitate defense against or recovery from terrorism or nuclear, biologi-
cal, chemical, or radiological attack may exercise the same authority 
(subject to the same restrictions and conditions) with respect to the re-
search 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 accordance with the require-
ments 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 
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