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submitted an unsolicited research proposal that demonstrates a unique 
and innovative concept, the substance of which is not otherwise avail-
able to the Federal Government and does not resemble the substance 
of a pending competitive procurement; or 
(2) a follow-on contract for the continued development or production 
of a major system or highly specialized equipment, the property may 
be deemed to be available only from the original source and may be 
procured through procedures other than competitive procedures when 
it is likely that award to a source other than the original source would 
result in— 
(A) substantial duplication of cost to the Federal Government 
that is not expected to be recovered through competition; or 
(B) unacceptable delay in fulfilling the executive agency’s needs. 
(c) OFFER REQUESTS TO POTENTIAL SOURCES.—An executive agency 
using procedures other than competitive procedures to procure property or 
services by reason of the application of paragraph (2) or (6) of subsection 
(a) shall request offers from as many potential sources as is practicable 
under the circumstances. 
(d) JUSTIFICATION FOR USE OF NONCOMPETITIVE PROCEDURES.— 
(1) PREREQUISITES FOR AWARDING CONTRACT.—Except as provided 
in paragraphs (4) and (5), an executive agency may not award a con-
tract using procedures other than competitive procedures unless— 
(A) the contracting officer for the contract justifies the use of 
those procedures in writing and certifies the accuracy and com-
pleteness of the justification; 
(B) the justification is approved, in the case of a contract for 
an amount— 
(i) exceeding $500,000 but equal to or less than 
$10,000,000, by the advocate for competition for the pro-
curing activity (without further delegation) or by an official 
referred to in clause (ii) or (iii); 
(ii) exceeding $10,000,000 but equal to or less than 
$50,000,000, by the head of the procuring activity or by a 
delegate who, if a member of the armed forces, is a general 
or flag officer or, if a civilian, is serving in a position in which 
the individual is entitled to receive the daily equivalent of the 
maximum annual rate of basic pay payable under section 
5376 of title 5 (or in a comparable or higher position under 
another schedule); or 
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HR 5414 RH 
(iii) exceeding $50,000,000, by the senior procurement ex-
ecutive of the agency designated pursuant to section 1702(c) 
of this title (without further delegation); and 
(C) any required notice has been published with respect to the 
contract pursuant to section 1707 of this title and the executive 
agency has considered all bids or proposals received in response 
to that notice. 
(2) ELEMENTS OF JUSTIFICATION.—The justification required by 
paragraph (1)(A) shall include— 
(A) a description of the agency’s needs; 
(B) an identification of the statutory exception from the re-
quirement to use competitive procedures and a demonstration, 
based on the proposed contractor’s qualifications or the nature of 
the procurement, of the reasons for using that exception; 
(C) a determination that the anticipated cost will be fair and 
reasonable; 
(D) a description of the market survey conducted or a state-
ment of the reasons a market survey was not conducted; 
(E) a listing of any sources that expressed in writing an interest 
in the procurement; and 
(F) a statement of any actions the agency may take to remove 
or overcome a barrier to competition before a subsequent procure-
ment for those needs. 
(3) JUSTIFICATION SUBJECT TO PUBLIC INSPECTION.—The justifica-
tion required by paragraph (1)(A) and any related information shall be 
made available for inspection by the public consistent with section 552 
of title 5. 
(4) JUSTIFICATION ALLOWED AFTER CONTRACT AWARDED.—In the 
case of a procurement permitted by subsection (a)(2), the justification 
and approval required by paragraph (1) may be made after the con-
tract is awarded. 
(5) JUSTIFICATION NOT REQUIRED.—The justification and approval 
required by paragraph (1) are not required if— 
(A) a statute expressly requires that the procurement be made 
from a specified source; 
(B) the agency’s need is for a brand-name commercial item for 
authorized resale; 
(C) the procurement is permitted by subsection (a)(7); or 
(D) the procurement is conducted under chapter 85 of this title 
or section 8(a) of the Small Business Act (15 U.S.C. 637(a)). 
(6) RESTRICTIONS ON EXECUTIVE AGENCIES.— 
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(A) CONTRACTS AND PROCUREMENT OF PROPERTY OR SERV-
ICES.—In no case may an executive agency— 
(i) enter into a contract for property or services using pro-
cedures other than competitive procedures on the basis of the 
lack of advance planning or concerns related to the amount 
available to the agency for procurement functions; or 
(ii) procure property or services from another executive 
agency unless the other executive agency complies fully with 
the requirements of this part in its procurement of the prop-
erty or services. 
(B) ADDITIONAL RESTRICTION.—The restriction set out in sub-
paragraph (A)(ii) is in addition to any other restriction provided 
by law. 
§ 3304. Simplified procedures for small purchases 
(a) AUTHORIZATION.—To promote efficiency and economy in contracting 
and to avoid unnecessary burdens for agencies and 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) LEASEHOLD INTERESTS IN REAL PROPERTY.—The Administrator of 
General Services shall prescribe regulations that provide special simplified 
procedures for acquisitions of leasehold interests in real property at rental 
rates that do not exceed the simplified acquisition threshold. The rental rate 
under a multiyear lease does not exceed the simplified acquisition threshold 
if the average annual amount of the rent payable for the period of the lease 
does not exceed the simplified acquisition threshold. 
(c) PROHIBITION ON DIVIDING CONTRACTS.—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 procedures required by subsection (a). 
(d) PROMOTION OF COMPETITION.—In using the simplified procedures, 
an executive agency shall promote competition to the maximum extent prac-
ticable. 
(e) COMPLIANCE WITH SPECIAL REQUIREMENTS OF FEDERAL ACQUISI-
TION REGULATION.—An executive agency shall comply with the Federal Ac-
quisition Regulation provisions referred to in section 1901(f) of this title. 
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§ 3305. Planning and solicitation requirements 
(a) PLANNING AND SPECIFICATIONS.— 
(1) PREPARING FOR PROCUREMENT.—In preparing for the procure-
ment of property or services, an executive agency shall— 
(A) specify its needs and solicit bids or proposals in a manner 
designed to achieve full and open competition for the procurement; 
(B) use advance procurement planning and market research; 
and 
(C) develop specifications in the manner necessary to obtain full 
and open competition with due regard to the nature of the prop-
erty or services to be acquired. 
(2) REQUIREMENTS OF SPECIFICATIONS.—Each solicitation under 
this part shall include specifications that— 
(A) consistent with this part, permit full and open competition; 
and 
(B) include restrictive provisions or conditions only to the extent 
necessary to satisfy the needs of the executive agency or as au-
thorized by law. 
(3) TYPES OF SPECIFICATIONS.—For the purposes of paragraphs (1) 
and (2), the type of specification included in a solicitation shall depend 
on the nature of the needs of the executive agency and the market 
available to satisfy those needs. Subject to those needs, specifications 
may be stated in terms of— 
(A) function, so that a variety of products or services may qual-
ify; 
(B) performance, including specifications of the range of accept-
able characteristics or of the minimum acceptable standards; or 
(C) design requirements. 
(b) CONTENTS OF SOLICITATION.—In addition to the specifications de-
scribed in subsection (a), each solicitation for sealed bids or competitive pro-
posals (other than for a procurement for commercial items using special 
simplified procedures or a purchase for an amount not greater than the sim-
plified acquisition threshold) shall at a minimum include— 
(1) a statement of— 
(A) all significant factors and subfactors that the executive 
agency reasonably expects to consider in evaluating sealed bids 
(including price) or competitive proposals (including cost or price, 
cost-related or price-related factors and subfactors, and noncost- 
related or nonprice-related factors and subfactors); and 
(B) the relative importance assigned to each of those factors 
and subfactors; and 
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