I 
110TH CONGRESS 
1ST SESSION H. R. 4779 
To enact certain laws relating to public contracts as title 41, United States 
Code, ‘‘Public Contracts’’. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 18, 2007 
Mr. CONYERS (for himself and Mr. SMITH of Texas) introduced the following 
bill; which was referred to the Committee on the Judiciary 
A BILL 
To enact certain laws relating to public contracts as title 
41, United States Code, ‘‘Public Contracts’’. 
Be it enacted by the Senate and House of Representatives of the United 
States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1.
Table of contents. 
Sec. 2.
Purpose; conformity with original intent. 
Sec. 3.
Enactment of Title 41, United States Code. 
Sec. 4.
Conforming amendment. 
Sec. 5.
Conforming cross-references. 
Sec. 6.
Transitional and savings provisions. 
Sec. 7.
Repeals. 
SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT. 
(a) PURPOSE.—The purpose of this Act is to enact certain laws relating 
to public contracts as title 41, United States Code, ‘‘Public Contracts’’. 
(b) CONFORMITY WITH ORIGINAL INTENT.—In the codification of laws 
by this Act, the intent is to conform to the understood policy, intent, and 
purpose of Congress in the original enactments, with such amendments and 
corrections as will remove ambiguities, contradictions, and other imperfec-
tions, in accordance with section 205(c)(1) of House Resolution No. 988, 
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93d Congress, as enacted into law by Public Law 93–554 (2 U.S.C. 
285b(1)). 
SEC. 3. ENACTMENT OF TITLE 41, UNITED STATES CODE. 
Certain general and permanent laws of the United States, related to pub-
lic contracts, are revised, codified, and enacted as title 41, United States 
Code, ‘‘Public Contracts’’, as follows: 
TITLE 41—PUBLIC CONTRACTS 
Subtitle 
Sec. 
I. FEDERAL PROCUREMENT POLICY ................................................
101 
II. OTHER ADVERTISING AND CONTRACT PROVISIONS ..........
6101 
III. MISCELLANEOUS ....................................................................................
8101 
Subtitle I—Federal Procurement Policy 
DIVISION A—GENERAL 
Chapter 
Sec. 
1. Definitions ...................................................................................................
101 
DIVISION B—OFFICE OF FEDERAL PROCUREMENT POLICY 
11. Establishment of Office and Authority and Functions of Ad-
ministrator.
1101 
13. Acquisition Councils ................................................................................
1301 
15. Cost Accounting Standards ...................................................................
1501 
17. Agency Responsibilities and Procedures ........................................
1701 
19. Simplified Acquisition Procedures ....................................................
1901 
21. Restrictions on Obtaining and Disclosing Certain Informa-
tion.
2101 
23. Miscellaneous .............................................................................................
2301 
DIVISION C—PROCUREMENT 
31. General ..........................................................................................................
3101 
33. Planning and Solicitation ......................................................................
3301 
35. Truthful Cost and Pricing Data ..........................................................
3501 
37. Awarding of Contracts ............................................................................
3701 
39. Specific Types of Contracts ..................................................................
3901 
41. Task and Delivery Order Contracts ..................................................
4101 
43. Allowable Costs ..........................................................................................
4301 
45. Contract Financing ..................................................................................
4501 
47. Miscellaneous .............................................................................................
4701 
DIVISION A—GENERAL 
CHAPTER 1—DEFINITIONS 
SUBCHAPTER I—SUBTITLE DEFINITIONS 
Sec. 
101.
Administrator. 
102.
Commercial component. 
103.
Commercial item. 
104.
Commercially available off-the-shelf item. 
105.
Component. 
106.
Federal Acquisition Regulation. 
107.
Full and open competition. 
108.
Item and item of supply. 
109.
Major system. 
110.
Nondevelopmental item. 
111.
Procurement. 
112.
Procurement system. 
113.
Responsible source. 
114.
Standards. 
115.
Supplies. 
116.
Technical data. 
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SUBCHAPTER II—DIVISION B DEFINITIONS 
131.
Acquisition. 
132.
Competitive procedures. 
133.
Executive agency. 
134.
Simplified acquisition threshold. 
SUBCHAPTER III—DIVISION C DEFINITIONS 
151.
Agency head. 
152.
Competitive procedures. 
153.
Simplified acquisition threshold. 
SUBCHAPTER I—SUBTITLE DEFINITIONS 
§ 101. Administrator 
In this subtitle, the term ‘‘Administrator’’ means the Administrator for 
Federal Procurement Policy appointed under section 1102 of this title. 
§ 102. Commercial component 
In this subtitle, the term ‘‘commercial component’’ means a component 
that is a commercial item. 
§ 103. Commercial item 
In this subtitle, the term ‘‘commercial item’’ means— 
(1) an item, other than real property, that— 
(A) is of a type customarily used by the general public or by 
nongovernmental entities for purposes other than governmental 
purposes; and 
(B) has been sold, leased, or licensed, or offered for sale, lease, 
or license, to the general public; 
(2) an item that— 
(A) evolved from an item described in paragraph (1) through 
advances in technology or performance; and 
(B) is not yet available in the commercial marketplace but will 
be available in the commercial marketplace in time to satisfy the 
delivery requirements under a Federal Government solicitation; 
(3) an item that would satisfy the criteria in paragraph (1) or (2) 
were it not for— 
(A) modifications of a type customarily available in the commer-
cial marketplace; or 
(B) minor modifications made to meet Federal Government re-
quirements; 
(4) any combination of items meeting the requirements of paragraph 
(1), (2), (3), or (5) that are of a type customarily combined and sold 
in combination to the general public; 
(5) installation services, maintenance services, repair services, train-
ing services, and other services if— 
(A) those services are procured for support of an item referred 
to in paragraph (1), (2), (3), or (4), regardless of whether the 
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services are provided by the same source or at the same time as 
the item; and 
(B) the source of the services provides similar services contem-
poraneously to the general public under terms and conditions simi-
lar to those offered to the Federal Government; 
(6) services offered and sold competitively, in substantial quantities, 
in the commercial marketplace based on established catalog or market 
prices for specific tasks performed or specific outcomes to be achieved 
and under standard commercial terms and conditions; 
(7) any item, combination of items, or service referred to in para-
graphs (1) to (6) even though the item, combination of items, or service 
is transferred between or among separate divisions, subsidiaries, or af-
filiates of a contractor; or 
(8) a nondevelopmental item if the procuring agency determines, in 
accordance with conditions in the Federal Acquisition Regulation, that 
the item was developed exclusively at private expense and has been sold 
in substantial quantities, on a competitive basis, to multiple State and 
local governments. 
§ 104. Commercially available off-the-shelf item 
In this subtitle, the term ‘‘commercially available off-the-shelf item’’— 
(1) means an item that— 
(A) is a commercial item (as described in section 103(1) of this 
title); 
(B) is sold in substantial quantities in the commercial market-
place; and 
(C) is offered to the Federal Government, without modification, 
in the same form in which it is sold in the commercial market-
place; but 
(2) does not include bulk cargo, as defined in section 3 of the Ship-
ping Act of 1984 (46 App. U.S.C. 1702), such as agricultural products 
and petroleum products. 
§ 105. Component 
In this subtitle, the term ‘‘component’’ means an item supplied to the 
Federal Government as part of an end item or of another component. 
§ 106. Federal Acquisition Regulation 
In this subtitle, the term ‘‘Federal Acquisition Regulation’’ means the 
regulation issued under section 1303(a)(1) of this title. 
§ 107. Full and open competition 
In this subtitle, the term ‘‘full and open competition’’, when used with 
respect to a procurement, means that all responsible sources are permitted 
to submit sealed bids or competitive proposals on the procurement. 
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§ 108. Item and item of supply 
In this subtitle, the terms ‘‘item’’ and ‘‘item of supply’’— 
(1) mean an individual part, component, subassembly, assembly, or 
subsystem integral to a major system, and other property which may 
be replaced during the service life of the system, including spare parts 
and replenishment spare parts; but 
(2) do not include packaging or labeling associated with shipment or 
identification of an item. 
§ 109. Major system 
(a) IN GENERAL.—In this subtitle, the term ‘‘major system’’ means a 
combination of elements that will function together to produce the capabili-
ties required to fulfill a mission need. These elements may include hardware, 
equipment, software, or a combination of hardware, equipment, and soft-
ware, but do not include construction or other improvements to real prop-
erty. 
(b) SYSTEM DEEMED TO BE MAJOR SYSTEM.—A system is deemed to 
be a major system if— 
(1) the Department of Defense is responsible for the system and the 
total expenditures for research, development, testing, and evaluation for 
the system are estimated to exceed $75,000,000 (based on fiscal year 
1980 constant dollars) or the eventual total expenditure for procure-
ment exceeds $300,000,000 (based on fiscal year 1980 constant dol-
lars); 
(2) a civilian agency is responsible for the system and total expendi-
tures for the system are estimated to exceed the greater of $750,000 
(based on fiscal year 1980 constant dollars) or the dollar threshold for 
a major system established by the agency pursuant to Office of Man-
agement and Budget (OMB) Circular A–109, entitled ‘‘Major Systems 
Acquisitions’’; or 
(3) the head of the agency responsible for the system designates the 
system a major system. 
§ 110. Nondevelopmental item 
In this subtitle, the term ‘‘nondevelopmental item’’ means— 
(1) a commercial item; 
(2) a previously developed item of supply that is in use by a depart-
ment or agency of the Federal Government, a State or local govern-
ment, or a foreign government with which the United States has a mu-
tual defense cooperation agreement; 
(3) an item of supply described in paragraph (1) or (2) that requires 
only minor modification or modification of the type customarily avail-
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able in the commercial marketplace to meet the requirements of the 
procuring department or agency; or 
(4) an item of supply currently being produced that does not meet 
the requirements of paragraph (1), (2), or (3) solely because the item 
is not yet in use. 
§ 111. Procurement 
In this subtitle, the term ‘‘procurement’’ includes all stages of the process 
of acquiring property or services, beginning with the process for determining 
a need for property or services and ending with contract completion and 
closeout. 
§ 112. Procurement system 
In this subtitle, the term ‘‘procurement system’’ means the integration of 
the procurement process, the professional development of procurement per-
sonnel, and the management structure for carrying out the procurement 
function. 
§ 113. Responsible source 
In this subtitle, the term ‘‘responsible source’’ means a prospective con-
tractor that— 
(1) has adequate financial resources to perform the contract or the 
ability to obtain those resources; 
(2) is able to comply with the required or proposed delivery or per-
formance schedule, taking into consideration all existing commercial 
and Government business commitments; 
(3) has a satisfactory performance record; 
(4) has a satisfactory record of integrity and business ethics; 
(5) has the necessary organization, experience, accounting and oper-
ational controls, and technical skills, or the ability to obtain the organi-
zation, experience, controls, and skills; 
(6) has the necessary production, construction, and technical equip-
ment and facilities, or the ability to obtain the equipment and facilities; 
and 
(7) is otherwise qualified and eligible to receive an award under ap-
plicable laws and regulations. 
§ 114. Standards 
In this subtitle, the term ‘‘standards’’ means the criteria for determining 
the effectiveness of the procurement system by measuring the performance 
of the various elements of the system. 
§ 115. Supplies 
In this subtitle, the term ‘‘supplies’’— 
(1) means an individual part, component, subassembly, assembly, or 
subsystem integral to a major system, and other property which may 
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be replaced during the service life of the system, including spare parts 
and replenishment spare parts; but 
(2) does not include packaging or labeling associated with shipment 
or identification of an item. 
§ 116. Technical data 
In this subtitle, the term ‘‘technical data’’— 
(1) means recorded information (regardless of the form or method 
of the recording) of a scientific or technical nature (including computer 
software documentation) relating to supplies procured by an agency; 
but 
(2) does not include computer software or financial, administrative, 
cost or pricing, or management data or other information incidental to 
contract administration. 
SUBCHAPTER II—DIVISION B DEFINITIONS 
§ 131. Acquisition 
In division B, the term ‘‘acquisition’’— 
(1) means the process of acquiring, with appropriated amounts, by 
contract for purchase or lease, property or services (including construc-
tion) that support the missions and goals of an executive agency, from 
the point at which the requirements of the executive agency are estab-
lished in consultation with the chief acquisition officer of the executive 
agency; and 
(2) includes— 
(A) the process of acquiring property or services that are al-
ready in existence, or that must be created, developed, dem-
onstrated, and evaluated; 
(B) the description of requirements to satisfy agency needs; 
(C) solicitation and selection of sources; 
(D) award of contracts; 
(E) contract performance; 
(F) contract financing; 
(G) management and measurement of contract performance 
through final delivery and payment; and 
(H) technical and management functions directly related to the 
process of fulfilling agency requirements by contract. 
§ 132. Competitive procedures 
In division B, the term ‘‘competitive procedures’’ means procedures under 
which an agency enters into a contract pursuant to full and open competi-
tion. 
§ 133. Executive agency 
In division B, the term ‘‘executive agency’’ means— 
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(1) an executive department specified in section 101 of title 5; 
(2) a military department specified in section 102 of title 5; 
(3) an independent establishment as defined in section 104(1) of title 
5; and 
(4) a wholly owned Government corporation fully subject to chapter 
91 of title 31. 
§ 134. Simplified acquisition threshold 
In division B, the term ‘‘simplified acquisition threshold’’ means 
$100,000. 
SUBCHAPTER III—DIVISION C DEFINITIONS 
§ 151. Agency head 
In division C, the term ‘‘agency head’’ means the head or any assistant 
head of an executive agency, and may at the option of the Administrator 
of General Services include the chief official of any principal organizational 
unit of the General Services Administration. 
§ 152. Competitive procedures 
In division C, the term ‘‘competitive procedures’’ means procedures under 
which an executive agency enters into a contract pursuant to full and open 
competition. The term also includes— 
(1) procurement of architectural or engineering services conducted in 
accordance with chapter 11 of title 40; 
(2) the competitive selection of basic research proposals resulting 
from a general solicitation and the peer review or scientific review (as 
appropriate) of those proposals; 
(3) the procedures established by the Administrator of General Serv-
ices for the multiple awards schedule program of the General Services 
Administration if— 
(A) participation in the program has been open to all respon-
sible sources; and 
(B) orders and contracts under those procedures result in the 
lowest overall cost alternative to meet the needs of the Federal 
Government; 
(4) procurements conducted in furtherance of section 15 of the Small 
Business Act (15 U.S.C. 644) as long as all responsible business con-
cerns that are entitled to submit offers for those procurements are per-
mitted to compete; and 
(5) a competitive selection of research proposals resulting from a 
general solicitation and peer review or scientific review (as appropriate) 
solicited pursuant to section 9 of that Act (15 U.S.C. 638). 
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§ 153. Simplified acquisition threshold 
(1) IN GENERAL.—In division C, the term ‘‘simplified acquisition thresh-
old’’ has the meaning provided that term in section 134 of this title, except 
that, in the case of a contract to be awarded and performed, or purchase 
to be made, outside the United States in support of a contingency operation 
or a humanitarian or peacekeeping operation, the term means an amount 
equal to two times the amount specified for that term in section 134 of this 
title. 
(2) SPECIFIC
DEFINITIONS
RELATING
TO
SIMPLIFIED
ACQUISITION 
THRESHOLD.—In paragraph (1)— 
(A) CONTINGENCY OPERATION.—The term ‘‘contingency operation’’ 
has the meaning given that term in section 101(a) of title 10. 
(B) HUMANITARIAN OR PEACEKEEPING OPERATION.—The term ‘‘hu-
manitarian or peacekeeping operation’’ means a military operation in 
support of the provision of humanitarian or foreign disaster assistance 
or in support of a peacekeeping operation under chapter VI or VII of 
the Charter of the United Nations. The term does not include routine 
training, force rotation, or stationing. 
DIVISION B—OFFICE OF FEDERAL PROCUREMENT POLICY 
CHAPTER 11—ESTABLISHMENT OF OFFICE AND 
AUTHORITY AND FUNCTIONS OF ADMINISTRATOR 
SUBCHAPTER I—GENERAL 
Sec. 
1101.
Office of Federal Procurement Policy. 
1102.
Administrator. 
SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR 
1121.
General authority. 
1122.
Functions. 
1123.
Small business concerns. 
1124.
Tests of innovative procurement methods and procedures. 
1125.
Recipients of Federal grants or assistance. 
1126.
Policy regarding consideration of contractor past performance. 
1127.
Determining benchmark compensation amount. 
1128.
Maintaining necessary capability with respect to acquisition of architectural and engi-
neering services. 
1129.
Center of excellence in contracting for services. 
1130.
Effect of division on other law. 
1131.
Annual report. 
SUBCHAPTER I—GENERAL 
§ 1101. Office of Federal Procurement Policy 
(a) ORGANIZATION.—There is an Office of Federal Procurement Policy 
in the Office of Management and Budget. 
(b) PURPOSES.—The purposes of the Office of Federal Procurement Pol-
icy are to— 
(1) provide overall direction of Government-wide procurement poli-
cies, regulations, procedures, and forms for executive agencies; and 
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(2) promote economy, efficiency, and effectiveness in the procure-
ment of property and services by the executive branch of the Federal 
Government. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Necessary amounts may be 
appropriated each fiscal year for the Office of Federal Procurement Policy 
to carry out the responsibilities of the Office for that fiscal year. 
§ 1102. Administrator 
(a) HEAD OF OFFICE.—The head of the Office of Federal Procurement 
Policy is the Administrator for Federal Procurement Policy. 
(b) APPOINTMENT.—The Administrator is appointed by the President, by 
and with the advice and consent of the Senate. 
SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE 
ADMINISTRATOR 
§ 1121. General authority 
(a) OVERALL DIRECTION AND LEADERSHIP.—The Administrator shall 
provide overall direction of procurement policy and leadership in the devel-
opment of procurement systems of the executive agencies. 
(b) FEDERAL ACQUISITION REGULATION.—To the extent that the Ad-
ministrator considers appropriate in carrying out the policies and functions 
set forth in this division, and with due regard for applicable laws and the 
program activities of the executive agencies, the Administrator may pre-
scribe Government-wide procurement policies. The policies shall be imple-
mented in a single Government-wide procurement regulation called the Fed-
eral Acquisition Regulation. 
(c) POLICIES TO BE FOLLOWED BY EXECUTIVE AGENCIES.— 
(1) AREAS OF PROCUREMENT FOR WHICH POLICIES ARE TO BE FOL-
LOWED.—The policies implemented in the Federal Acquisition Regula-
tion shall be followed by executive agencies in the procurement of— 
(A) property other than real property in being; 
(B) services, including research and development; and 
(C) construction, alteration, repair, or maintenance of real prop-
erty. 
(2) PROCEDURES
TO
ENSURE
COMPLIANCE.—The Administrator 
shall establish procedures to ensure compliance with the Federal Acqui-
sition Regulation by all executive agencies. 
(3) APPLICATION OF OTHER LAWS.—The authority of an executive 
agency under another law to prescribe policies, regulations, procedures, 
and forms for procurement is subject to the authority conferred in this 
section and sections 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 
2304 of this title. 
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(d) WHEN CERTAIN AGENCIES ARE UNABLE TO AGREE OR FAIL TO 
ACT.—In any instance in which the Administrator determines that the De-
partment of Defense, the National Aeronautics and Space Administration, 
and the General Services Administration are unable to agree on or fail to 
issue Government-wide regulations, procedures, and forms in a timely man-
ner, including regulations, procedures, and forms necessary to implement 
prescribed policy the Administrator initiates under subsection (b), the Ad-
ministrator, with due regard for applicable laws and the program activities 
of the executive agencies and consistent with the policies and functions set 
forth in this division, shall prescribe Government-wide regulations, proce-
dures, and forms which executive agencies shall follow in procuring items 
listed in subsection (c)(1). 
(e) OVERSIGHT
OF PROCUREMENT REGULATIONS
OF OTHER AGEN-
CIES.—The Administrator, with the concurrence of the Director of the Of-
fice of Management and Budget, and with consultation with the head of the 
agency concerned, may deny the promulgation of or rescind any Govern-
ment-wide regulation or final rule or regulation of any executive agency re-
lating to procurement if the Administrator determines that the rule or regu-
lation is inconsistent with any policies, regulations, or procedures issued 
pursuant to subsection (b). 
(f) LIMITATION ON AUTHORITY.—The authority of the Administrator 
under this division shall not be construed to— 
(1) impair or interfere with the determination by executive agencies 
of their need for, or their use of, specific property, services, or con-
struction, including particular specifications for the property, services, 
or construction; or 
(2) interfere with the determination by executive agencies of specific 
actions in the award or administration of procurement contracts. 
§ 1122. Functions 
(a) IN GENERAL.—The functions of the Administrator include— 
(1) providing leadership and ensuring action by the executive agen-
cies in establishing, developing, and maintaining the single system of 
simplified Government-wide procurement regulations and resolving dif-
ferences among the executive agencies in developing simplified Govern-
ment-wide procurement regulations, procedures, and forms; 
(2) coordinating the development of Government-wide procurement 
system standards that executive agencies shall implement in their pro-
curement systems; 
(3) providing leadership and coordination in formulating the execu-
tive branch position on legislation relating to procurement; 
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(4)(A) providing for and directing the activities of the computer- 
based Federal Procurement Data System (including recommending to 
the Administrator of General Services a sufficient budget for those ac-
tivities), which shall be located in the General Services Administration, 
in order to adequately collect, develop, and disseminate procurement 
data; and 
(B) ensuring executive agency compliance with the record require-
ments of section 1710 of this title; 
(5) providing for and directing the activities of the Federal Acquisi-
tion Institute (including recommending to the Administrator of General 
Services a sufficient budget for those activities), which shall be located 
in the General Services Administration, in order to— 
(A) foster and promote the development of a professional acqui-
sition workforce Government-wide; 
(B) promote and coordinate Government-wide research and 
studies to improve the procurement process and the laws, policies, 
methods, regulations, procedures, and forms relating to acquisition 
by the executive agencies; 
(C) collect data and analyze acquisition workforce data from the 
Office of Personnel Management, from the heads of executive 
agencies, and, through periodic surveys, from individual employees; 
(D) periodically analyze acquisition career fields to identify crit-
ical competencies, duties, tasks, and related academic pre-
requisites, skills, and knowledge; 
(E) coordinate and assist agencies in identifying and recruiting 
highly qualified candidates for acquisition fields; 
(F) develop instructional materials for acquisition personnel in 
coordination with private and public acquisition colleges and train-
ing facilities; 
(G) evaluate the effectiveness of training and career develop-
ment programs for acquisition personnel; 
(H) promote the establishment and utilization of academic pro-
grams by colleges and universities in acquisition fields; 
(I) facilitate, to the extent requested by agencies, interagency 
intern and training programs; and 
(J) perform other career management or research functions as 
directed by the Administrator; 
(6) administering section 1703(a) to (i) of this title; 
(7) establishing criteria and procedures to ensure the effective and 
timely solicitation of the viewpoints of interested parties in the develop-
ment of procurement policies, regulations, procedures, and forms; 
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(8) developing standard contract forms and contract language in 
order to reduce the Federal Government’s cost of procuring property 
and services and the private sector’s cost of doing business with the 
Federal Government; 
(9) providing for a Government-wide award to recognize and promote 
vendor excellence; 
(10) providing for a Government-wide award to recognize and pro-
mote excellence in officers and employees of the Federal Government 
serving in procurement-related positions; 
(11) developing policies, in consultation with the Administrator of 
the Small Business Administration, that ensure that small businesses, 
qualified HUBZone small business concerns (as defined in section 3(p) 
of the Small Business Act (15 U.S.C. 632(p))), small businesses owned 
and controlled by socially and economically disadvantaged individuals, 
and small businesses owned and controlled by women are provided with 
the maximum practicable opportunities to participate in procurements 
that are conducted for amounts below the simplified acquisition thresh-
old; 
(12) developing policies that will promote achievement of goals for 
participation by small businesses, small business concerns owned and 
controlled by service-disabled veterans, qualified HUBZone small busi-
ness concerns (as defined in section 3(p) of the Small Business Act (15 
U.S.C. 632(p))), small businesses owned and controlled by socially and 
economically disadvantaged individuals, and small businesses owned 
and controlled by women; and 
(13) completing action, as appropriate, on the recommendations of 
the Commission on Government Procurement. 
(b) CONSULTATION AND ASSISTANCE.—In carrying out the functions in 
subsection (a), the Administrator— 
(1) shall consult with the affected executive agencies, including the 
Small Business Administration; 
(2) with the concurrence of the heads of affected executive agencies, 
may designate one or more executive agencies to assist in performing 
those functions; and 
(3) may establish advisory committees or other interagency groups 
to assist in providing for the establishment, development, and mainte-
nance of a single system of simplified Government-wide procurement 
regulations and to assist in performing any other function the Adminis-
trator considers appropriate. 
(c) ASSIGNMENT, DELEGATION, OR TRANSFER.— 
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(1) TO ADMINISTRATOR.—Except as otherwise provided by law, only 
duties, functions, or responsibilities expressly assigned by this division 
shall be assigned, delegated, or transferred to the Administrator. 
(2) BY ADMINISTRATOR.— 
(A) WITHIN OFFICE.—The Administrator may make and au-
thorize delegations within the Office of Federal Procurement Pol-
icy that the Administrator determines to be necessary to carry out 
this division. 
(B) TO
ANOTHER
EXECUTIVE
AGENCY.—The Administrator 
may delegate, and authorize successive redelegations of, an author-
ity, function, or power of the Administrator under this division 
(other than the authority to provide overall direction of Federal 
procurement policy and to prescribe policies and regulations to 
carry out the policy) to another executive agency with the consent 
of the head of the executive agency or at the direction of the 
President. 
§ 1123. Small business concerns 
In formulating the Federal Acquisition Regulation and procedures to en-
sure compliance with the Regulation, the Administrator, in consultation with 
the Small Business Administration, shall— 
(1) conduct analyses of the impact on small business concerns result-
ing from revised procurement regulations; and 
(2) incorporate into revised procurement regulations simplified bid-
ding, contract performance, and contract administration procedures for 
small business concerns. 
§ 1124. Tests of innovative procurement methods and proce-
dures 
(a) IN GENERAL.—The Administrator may develop innovative procure-
ment methods and procedures to be tested by selected executive agencies. 
In developing a program to test innovative procurement methods and proce-
dures under this subsection, the Administrator shall consult with the heads 
of executive agencies to— 
(1) ascertain the need for and specify the objectives of the program; 
(2) develop the guidelines and procedures for carrying out the pro-
gram and the criteria to be used in measuring the success of the pro-
gram; 
(3) evaluate the potential costs and benefits which may be derived 
from the innovative procurement methods and procedures tested under 
the program; 
(4) select the appropriate executive agencies or components of execu-
tive agencies to carry out the program; 
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(5) specify the categories and types of products or services to be pro-
cured under the program; and 
(6) develop the methods to be used to analyze the results of the pro-
gram. 
(b) APPROVAL OF EXECUTIVE AGENCIES REQUIRED.—A program to test 
innovative procurement methods and procedures may not be carried out un-
less approved by the heads of the executive agencies selected to carry out 
the program. 
(c) REQUEST FOR WAIVER OF LAW.—If the Administrator determines 
that it is necessary to waive the application of a provision of law to carry 
out a proposed program to test innovative procurement methods and proce-
dures under subsection (a), the Administrator shall transmit notice of the 
proposed program to the Committee on Oversight and Government Reform 
of the House of Representatives and the Committee on Homeland Security 
and Governmental Affairs of the Senate and request that the Committees 
take the necessary action to provide that the provision of law does not apply 
with respect to the proposed program. The notification to Congress shall in-
clude— 
(1) a description of the proposed program (including the scope and 
purpose of the proposed program); 
(2) the procedures to be followed in carrying out the proposed pro-
gram; 
(3) the provisions of law affected and the application of any provi-
sion of law that must be waived in order to carry out the proposed pro-
gram; and 
(4) the executive agencies involved in carrying out the proposed pro-
gram. 
§ 1125. Recipients of Federal grants or assistance 
(a) AUTHORITY.—With due regard to applicable laws and the program 
activities of the executive agencies administering Federal programs of 
grants or assistance, the Administrator may prescribe Government-wide 
policies, regulations, procedures, and forms that the Administrator considers 
appropriate and that executive agencies shall follow in providing for the pro-
curement, to the extent required under those programs, of property or serv-
ices referred to in section 1121(c)(1) of this title by recipients of Federal 
grants or assistance under the programs. 
(b) LIMITATION.—Subsection (a) does not— 
(1) permit the Administrator to authorize procurement or supply 
support, either directly or indirectly, to a recipient of a Federal grant 
or assistance; or 
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(2) authorize action by a recipient contrary to State and local law 
in the case of a program to provide a Federal grant or assistance to 
a State or political subdivision. 
§ 1126. Policy regarding consideration of contractor past 
performance 
(a) GUIDANCE.—The Administrator shall prescribe for executive agencies 
guidance regarding consideration of the past contract performance of 
offerors in awarding contracts. The guidance shall include— 
(1) standards for evaluating past performance with respect to cost 
(when appropriate), schedule, compliance with technical or functional 
specifications, and other relevant performance factors that facilitate 
consistent and fair evaluation by all executive agencies; 
(2) policies for the collection and maintenance of information on past 
contract performance that, to the maximum extent practicable, facili-
tate automated collection, maintenance, and dissemination of informa-
tion and provide for ease of collection, maintenance, and dissemination 
of information by other methods, as necessary; 
(3) policies for ensuring that— 
(A) offerors are afforded an opportunity to submit relevant in-
formation on past contract performance, including performance 
under contracts entered into by the executive agency concerned, 
other departments and agencies of the Federal Government, agen-
cies of State and local governments, and commercial customers; 
and 
(B) the information submitted by offerors is considered; and 
(4) the period for which information on past performance of offerors 
may be maintained and considered. 
(b) INFORMATION NOT AVAILABLE.—If there is no information on past 
contract performance of an offeror or the information on past contract per-
formance is not available, the offeror may not be evaluated favorably or un-
favorably on the factor of past contract performance. 
§ 1127. Determining benchmark compensation amount 
(a) DEFINITIONS.—In this section: 
(1) BENCHMARK COMPENSATION AMOUNT.—The term ‘‘benchmark 
compensation amount’’, for a fiscal year, is the median amount of the 
compensation provided for all senior executives of all benchmark cor-
porations for the most recent year for which data is available at the 
time the determination under subsection (b) is made. 
(2) BENCHMARK
CORPORATION.—The term ‘‘benchmark corpora-
tion’’, with respect to a fiscal year, means a publicly-owned United 
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States corporation that has annual sales in excess of $50,000,000 for 
the fiscal year. 
(3) COMPENSATION.—The term ‘‘compensation’’, for a fiscal year, 
means the total amount of wages, salary, bonuses, and deferred com-
pensation for the fiscal year, whether paid, earned, or otherwise accru-
ing, as recorded in an employer’s cost accounting records for the fiscal 
year. 
(4) FISCAL YEAR.—The term ‘‘fiscal year’’ means a fiscal year a 
contractor establishes for accounting purposes. 
(5) PUBLICLY-OWNED
UNITED
STATES
CORPORATION.—The term 
‘‘publicly-owned United States corporation’’ means a corporation— 
(A) organized under the laws of a State of the United States, 
the District of Columbia, Puerto Rico, or a possession of the 
United States; and 
(B) whose voting stock is publicly traded. 
(6) SENIOR EXECUTIVES.—The term ‘‘senior executives’’, with re-
spect to a contractor, means the 5 most highly compensated employees 
in management positions at each home office and each segment of the 
contractor. 
(b) DETERMINING BENCHMARK COMPENSATION AMOUNT.—For purposes 
of section 4304(a)(16) of this title and section 2324(e)(1)(P) of title 10, 
the Administrator shall review commercially available surveys of executive 
compensation and, on the basis of the results of the review, determine a 
benchmark compensation amount to apply for each fiscal year. In making 
determinations under this subsection, the Administrator shall consult with 
the Director of the Defense Contract Audit Agency and other officials of 
executive agencies as the Administrator considers appropriate. 
§ 1128. Maintaining necessary capability with respect to ac-
quisition of architectural and engineering services 
The Administrator, in consultation with the Secretary of Defense, the Ad-
ministrator of General Services, and the Director of the Office of Personnel 
Management, shall develop and implement a plan to ensure that the Federal 
Government maintains the necessary capability with respect to the acquisi-
tion of architectural and engineering services to— 
(1) ensure that Federal Government employees have the expertise to 
determine agency requirements for those services; 
(2) establish priorities and programs, including acquisition plans; 
(3) establish professional standards; 
(4) develop scopes of work; and 
(5) award and administer contracts for those services. 
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§ 1129. Center of excellence in contracting for services 
The Administrator shall maintain a center of excellence in contracting for 
services. The center shall assist the acquisition community by identifying, 
and serving as a clearinghouse for, best practices in contracting for services 
in the public and private sectors. 
§ 1130. Effect of division on other law 
This division does not impair or affect the authorities or responsibilities 
relating to the procurement of real property conferred by division C of this 
subtitle and chapters 1 to 11 of title 40. 
§ 1131. Annual report 
The Administrator annually shall submit to Congress an assessment of 
the progress made in executive agencies in implementing the policy regard-
ing major acquisitions that is stated in section 3103(a) of this title. The 
Administrator shall use data from existing management systems in making 
the assessment. 
CHAPTER 13—ACQUISITION COUNCILS 
SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY COUNCIL 
Sec. 
1301.
Definition. 
1302.
Establishment and membership. 
1303.
Functions and authority. 
1304.
Contract clauses and certifications. 
SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 
1311.
Establishment and membership. 
1312.
Functions. 
SUBCHAPTER I—FEDERAL ACQUISITION REGULATORY 
COUNCIL 
§ 1301. Definition 
In this subchapter, the term ‘‘Council’’ means the Federal Acquisition 
Regulatory Council established under section 1302(a) of this title. 
§ 1302. Establishment and membership 
(a) ESTABLISHMENT.—There is a Federal Acquisition Regulatory Council 
to assist in the direction and coordination of Government-wide procurement 
policy and Government-wide procurement regulatory activities in the Fed-
eral Government. 
(b) MEMBERSHIP.— 
(1) MAKEUP OF COUNCIL.—The Council consists of— 
(A) the Administrator; 
(B) the Secretary of Defense; 
(C) the Administrator of National Aeronautics and Space; and 
(D) the Administrator of General Services. 
(2) DESIGNATION OF OTHER OFFICIALS.— 
(A) OFFICIALS WHO MAY BE DESIGNATED.—Notwithstanding 
section 121(d)(1) and (2) of title 40, the officials specified in sub-
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paragraphs (B) to (D) of paragraph (1) may designate to serve 
on and attend meetings of the Council in place of that official— 
(i) the official assigned by statute with the responsibility 
for acquisition policy in each of their respective agencies or, 
in the case of the Secretary of Defense, an official at an orga-
nizational level not lower than an Assistant Secretary of De-
fense within the Office of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics; or 
(ii) if no official of that agency is assigned by statute with 
the responsibility for acquisition policy for that agency, the 
official designated pursuant to section 1702(c) of this title. 
(B) LIMITATION ON DESIGNATION.—No other official or em-
ployee may be designated to serve on the Council. 
§ 1303. Functions and authority 
(a) FUNCTIONS.— 
(1) ISSUE AND MAINTAIN FEDERAL ACQUISITION REGULATION.— 
Subject to sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, 
and 2304 of this title, the Administrator of General Services, the Sec-
retary of Defense, and the Administrator of National Aeronautics and 
Space, pursuant to their respective authorities under division C of this 
subtitle, chapters 4 and 137 of title 10, and the National Aeronautics 
and Space Act of 1958 (42 U.S.C. 2451 et seq.), shall jointly issue and 
maintain in accordance with subsection (d) a single Government-wide 
procurement regulation, to be known as the Federal Acquisition Regu-
lation. 
(2) LIMITATION ON OTHER REGULATIONS.—Other regulations relat-
ing to procurement issued by an executive agency shall be limited to— 
(A) regulations essential to implement Government-wide policies 
and procedures within the agency; and 
(B) additional policies and procedures required to satisfy the 
specific and unique needs of the agency. 
(3) ENSURE
CONSISTENT
REGULATIONS.—The Administrator, in 
consultation with the Council, shall ensure that procurement regula-
tions prescribed by executive agencies are consistent with the Federal 
Acquisition Regulation and in accordance with the policies prescribed 
pursuant to section 1121(b) of this title. 
(4) REQUEST TO REVIEW REGULATION.— 
(A) BASIS FOR REQUEST.—Under procedures the Administrator 
establishes, a person may request the Administrator to review a 
regulation relating to procurement on the basis that the regulation 
is inconsistent with the Federal Acquisition Regulation. 
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(B) PERIOD OF REVIEW.—Unless the request is frivolous or 
does not, on its face, state a valid basis for the review, the Admin-
istrator shall complete the review not later than 60 days after re-
ceiving the request. The time for completion of the review may be 
extended if the Administrator determines that an additional period 
of review is required. The Administrator shall advise the requester 
of the reasons for the extension and the date by which the review 
will be completed. 
(5) WHEN REGULATION IS INCONSISTENT OR NEEDS TO BE IM-
PROVED.—If the Administrator determines that a regulation relating to 
procurement is inconsistent with the Federal Acquisition Regulation or 
that the regulation otherwise should be revised to remove an inconsist-
ency with the policies prescribed under section 1121(b) of this title, the 
Administrator shall rescind or deny the promulgation of the regulation 
or take other action authorized under sections 1121, 1122(a) to (c)(1), 
1125, 1126, 1130, 1131, and 2304 of this title as may be necessary 
to remove the inconsistency. If the Administrator determines that the 
regulation, although not inconsistent with the Federal Acquisition Reg-
ulation or those policies, should be revised to improve compliance with 
the Regulation or policies, the Administrator shall take action author-
ized under sections 1121, 1122(a) to (c)(1), 1125, 1126, 1130, 1131, 
and 2304 as may be necessary and appropriate. 
(6) DECISIONS TO BE IN WRITING AND PUBLICLY AVAILABLE.—The 
decisions of the Administrator shall be in writing and made publicly 
available. 
(b) ADDITIONAL RESPONSIBILITIES OF MEMBERSHIP.— 
(1) IN GENERAL.—Subject to the authority, direction, and control of 
the head of the agency concerned, each official who represents an agen-
cy on the Council pursuant to section 1302(b) of this title shall— 
(A) approve or disapprove all regulations relating to procure-
ment that are proposed for public comment, prescribed in final 
form, or otherwise made effective by that agency before the regula-
tion may be prescribed in final form, or otherwise made effective, 
except that the official may grant an interim approval, without re-
view, for not more than 60 days for a procurement regulation in 
urgent and compelling circumstances; 
(B) carry out the responsibilities of that agency set forth in 
chapter 35 of title 44 for each information collection request that 
relates to procurement rules or regulations; and 
(C) eliminate or reduce— 
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(i) any redundant or unnecessary levels of review and ap-
proval in the procurement system of that agency; and 
(ii) redundant or unnecessary procurement regulations 
which are unique to that agency. 
(2) LIMITATION ON DELEGATION.—The authority to review and ap-
prove or disapprove regulations under paragraph (1)(A) may not be 
delegated to an individual outside the office of the official who rep-
resents the agency on the Council pursuant to section 1302(b) of this 
title. 
(c) GOVERNING POLICIES.—All actions of the Council and of members of 
the Council shall be in accordance with and furtherance of the policies pre-
scribed under section 1121(b) of this title. 
(d) GENERAL AUTHORITY WITH RESPECT TO FEDERAL ACQUISITION 
REGULATION.—Subject to section 1121(d) of this title, the Council shall 
manage, coordinate, control, and monitor the maintenance of, issuance of, 
and changes in, the Federal Acquisition Regulation. 
§ 1304. Contract clauses and certifications 
(a) REPETITIVE NONSTANDARD CONTRACT CLAUSES DISCOURAGED.— 
The Council shall prescribe regulations to discourage the use of a non-
standard contract clause on a repetitive basis. The regulations shall include 
provisions that— 
(1) clearly define what types of contract clauses are to be treated 
as nonstandard clauses; and 
(2) require prior approval for the use of a nonstandard clause on a 
repetitive basis by an official at a level of responsibility above the con-
tracting officer. 
(b) WHEN CERTIFICATION REQUIRED.— 
(1) BY LAW.—A provision of law may not be construed as requiring 
a certification by a contractor or offeror in a procurement made or to 
be made by the Federal Government unless that provision of law spe-
cifically provides that such a certification shall be required. 
(2) IN FEDERAL ACQUISITION REGULATION.—A requirement for a 
certification by a contractor or offeror may not be included in the Fed-
eral Acquisition Regulation unless— 
(A) the certification requirement is specifically imposed by stat-
ute; or 
(B) written justification for the certification requirement is pro-
vided to the Administrator by the Council and the Administrator 
approves in writing the inclusion of the certification requirement. 
(3) EXECUTIVE AGENCY PROCUREMENT REGULATION.— 
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(A) DEFINITION.—In subparagraph (B), the term ‘‘head of the 
executive agency’’ with respect to a military department means the 
Secretary of Defense. 
(B) WHEN CERTIFICATION REQUIREMENT MAY BE INCLUDED 
IN
REGULATION.—A requirement for a certification by a con-
tractor or offeror may not be included in a procurement regulation 
of an executive agency unless— 
(i) the certification requirement is specifically imposed by 
statute; or 
(ii) written justification for the certification requirement is 
provided to the head of the executive agency by the senior 
procurement executive of the agency and the head of the exec-
utive agency approves in writing the inclusion of the certifi-
cation requirement. 
SUBCHAPTER II—CHIEF ACQUISITION OFFICERS COUNCIL 
§ 1311. Establishment and membership 
(a) ESTABLISHMENT.—There is in the executive branch a Chief Acquisi-
tion Officers Council. 
(b) MEMBERSHIP.—The members of the Council are— 
(1) the Deputy Director for Management of the Office of Manage-
ment and Budget; 
(2) the Administrator; 
(3) the Under Secretary of Defense for Acquisition, Technology, and 
Logistics; 
(4) the chief acquisition officer of each executive agency that is re-
quired to have a chief acquisition officer under section 1702 of this 
title and the senior procurement executive of each military department; 
and 
(5) any other senior agency officer of each executive agency, ap-
pointed by the head of the agency in consultation with the Chairman 
of the Council, who can effectively assist the Council in performing the 
functions set forth in section 1312(b) of this title and supporting the 
associated range of acquisition activities. 
(c) LEADERSHIP AND SUPPORT.— 
(1) CHAIRMAN.—The Deputy Director for Management of the Office 
of Management and Budget is the Chairman of the Council. 
(2) VICE CHAIRMAN.—The Vice Chairman of the Council shall be se-
lected by the Council from among its members. The Vice Chairman 
serves for one year and may serve multiple terms. 
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(3) LEADER OF ACTIVITIES.—The Administrator shall lead the ac-
tivities of the Council on behalf of the Deputy Director for Manage-
ment. 
(4) SUPPORT.—The Administrator of General Services shall provide 
administrative and other support for the Council. 
§ 1312. Functions 
(a) PRINCIPAL FORUM.—The Chief Acquisition Officers Council is the 
principal interagency forum for monitoring and improving the Federal ac-
quisition system. 
(b) FUNCTIONS.—The Council shall perform functions that include the 
following: 
(1) Develop recommendations for the Director of the Office of Man-
agement and Budget on Federal acquisition policies and requirements. 
(2) Share experiences, ideas, best practices, and innovative ap-
proaches related to Federal acquisition. 
(3) Assist the Administrator in the identification, development, and 
coordination of multiagency projects and other innovative initiatives to 
improve Federal acquisition. 
(4) Promote effective business practices that ensure the timely deliv-
ery of best value products to the Federal Government and achieve ap-
propriate public policy objectives. 
(5) Further integrity, fairness, competition, openness, and efficiency 
in the Federal acquisition system. 
(6) Work with the Office of Personnel Management to assess and ad-
dress the hiring, training, and professional development needs of the 
Federal Government related to acquisition. 
(7) Work with the Administrator and the Federal Acquisition Regu-
latory Council to promote the business practices referred to in para-
graph (4) and other results of the functions carried out under this sub-
section. 
CHAPTER 15—COST ACCOUNTING STANDARDS 
Sec. 
1501.
Cost Accounting Standards Board. 
1502.
Cost accounting standards. 
1503.
Contract price adjustment. 
1504.
Effect on other standards and regulations. 
1505.
Examinations. 
1506.
Authorization of appropriations. 
§ 1501. Cost Accounting Standards Board 
(a) ORGANIZATION.—The Cost Accounting Standards Board is an inde-
pendent board in the Office of Federal Procurement Policy. 
(b) MEMBERSHIP.— 
(1) NUMBER OF MEMBERS, CHAIRMAN, AND APPOINTMENT.—The 
Board consists of 5 members. One member is the Administrator, who 
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serves as Chairman. The other 4 members, all of whom shall have expe-
rience in Federal Government contract cost accounting, are as follows: 
(A) 2 representatives of the Federal Government— 
(i) one of whom is a representative of the Department of 
Defense appointed by the Secretary of Defense; and 
(ii) one of whom is an officer or employee of the General 
Services Administration appointed by the Administrator of 
General Services. 
(B) 2 individuals from the private sector, each of whom is ap-
pointed by the Administrator, and— 
(i) one of whom is a representative of industry; and 
(ii) one of whom is particularly knowledgeable about cost 
accounting problems and systems. 
(2) TERM OF OFFICE.— 
(A) LENGTH OF TERM.—The term of office of each member, 
other than the Administrator, is 4 years. The terms are staggered, 
with the terms of 2 members expiring in the same year, the term 
of another member expiring the next year, and the term of the last 
member expiring the year after that. 
(B) INDIVIDUAL
REQUIRED
TO
REMAIN
WITH
APPOINTING 
AGENCY.—A member appointed under paragraph (1)(A) may not 
continue to serve after ceasing to be an officer or employee of the 
agency from which that member was appointed. 
(3) VACANCY.—A vacancy on the Board shall be filled in the same 
manner in which the original appointment was made. A member ap-
pointed to fill a vacancy serves for the remainder of the term for which 
that member’s predecessor was appointed. 
(c) SENIOR STAFF.—The Administrator, after consultation with the 
Board, may— 
(1) appoint an executive secretary and 2 additional staff members 
without regard to the provisions of title 5 governing appointments in 
the competitive service; and 
(2) pay those employees without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of title 5 relating to classification 
and General Schedule pay rates, except that those employees may not 
receive pay in excess of the maximum rate of basic pay payable under 
section 5376 of title 5. 
(d) OTHER STAFF.—The Administrator may appoint, fix the compensa-
tion of, and remove additional employees of the Board under the applicable 
provisions of title 5. 
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(e) DETAILED AND TEMPORARY PERSONNEL.—For service on advisory 
committees and task forces to assist the Board in carrying out its functions 
and responsibilities— 
(1) the Board, with the consent of the head of a Federal agency, 
may use, without reimbursement, personnel of that agency; and 
(2) the Administrator, after consultation with the Board, may pro-
cure temporary and intermittent services of personnel under section 
3109(b) of title 5. 
(f) COMPENSATION.— 
(1) OFFICERS AND EMPLOYEES OF THE GOVERNMENT.—Members of 
the Board who are officers or employees of the Federal Government, 
and officers and employees of other agencies of the Federal Govern-
ment who are used under subsection (e)(1), shall not receive additional 
compensation for services but shall continue to be compensated by the 
employing department or agency of the officer or employee. 
(2) APPOINTEES
FROM
PRIVATE
SECTOR.—Each member of the 
Board appointed from the private sector shall receive compensation at 
a rate not to exceed the daily equivalent of the rate for level IV of the 
Executive Schedule for each day (including travel time) in which the 
member is engaged in the actual performance of duties vested in the 
Board. 
(3) TEMPORARY AND INTERMITTENT PERSONNEL.—An individual 
hired under subsection (e)(2) may receive compensation at a rate fixed 
by the Administrator, but not to exceed the daily equivalent of the rate 
for level V of the Executive Schedule for each day (including travel 
time) in which the individual is properly engaged in the actual perform-
ance of duties under this chapter. 
(4) TRAVEL EXPENSES.—While serving away from home or regular 
place of business, Board members and other individuals serving on an 
intermittent basis under this chapter shall be allowed travel expenses 
in accordance with section 5703 of title 5. 
§ 1502. Cost accounting standards 
(a) AUTHORITY.— 
(1) COST ACCOUNTING STANDARDS BOARD.—The Cost Accounting 
Standards Board has exclusive authority to prescribe, amend, and re-
scind cost accounting standards, and interpretations of the standards, 
designed to achieve uniformity in the cost accounting standards gov-
erning measurement, assignment, and allocation of costs to contracts 
with the Federal Government. 
(2) ADMINISTRATOR
FOR
FEDERAL
PROCUREMENT
POLICY.—The 
Administrator, after consultation with the Board, shall prescribe rules 
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and procedures governing actions of the Board under this chapter. The 
rules and procedures shall require that any action to prescribe, amend, 
or rescind a standard or interpretation be approved by majority vote 
of the Board. 
(b) MANDATORY USE OF STANDARDS.— 
(1) SUBCONTRACT.— 
(A) DEFINITION.—In this paragraph, the term ‘‘subcontract’’ 
includes a transfer of commercial items between divisions, subsidi-
aries, or affiliates of a contractor or subcontractor. 
(B) WHEN STANDARDS ARE TO BE USED.—Cost accounting 
standards prescribed under this chapter are mandatory for use by 
all executive agencies and by contractors and subcontractors in es-
timating, accumulating, and reporting costs in connection with the 
pricing and administration of, and settlement of disputes con-
cerning, all negotiated prime contract and subcontract procure-
ments with the Federal Government in excess of the amount set 
forth in section 2306a(a)(1)(A)(i) of title 10 as the amount is ad-
justed in accordance with applicable requirements of law. 
(C) NONAPPLICATION OF STANDARDS.—Subparagraph (B) does 
not apply to— 
(i) a contract or subcontract for the acquisition of a com-
mercial item; 
(ii) a contract or subcontract where the price negotiated is 
based on a price set by law or regulation; 
(iii) a firm, fixed-price contract or subcontract awarded on 
the basis of adequate price competition without submission of 
certified cost or pricing data; or 
(iv) a contract or subcontract with a value of less than 
$7,500,000 if, when the contract or subcontract is entered 
into, the segment of the contractor or subcontractor that will 
perform the work has not been awarded at least one contract 
or subcontract with a value of more than $7,500,000 that is 
covered by the standards. 
(2) EXEMPTIONS AND WAIVERS BY BOARD.—The Board may— 
(A) exempt classes of contractors and subcontractors from the 
requirements of this chapter; and 
(B) establish procedures for the waiver of the requirements of 
this chapter for individual contracts and subcontracts. 
(3) WAIVER BY HEAD OF EXECUTIVE AGENCY.— 
(A) IN GENERAL.—The head of an executive agency may waive 
the applicability of the cost accounting standards for a contract 
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or subcontract with a value of less than $15,000,000 if that offi-
cial determines in writing that the segment of the contractor or 
subcontractor that will perform the work— 
(i) is primarily engaged in the sale of commercial items; 
and 
(ii) would not otherwise be subject to the cost accounting 
standards under this section. 
(B) IN EXCEPTIONAL CIRCUMSTANCES.—The head of an execu-
tive agency may waive the applicability of the cost accounting 
standards for a contract or subcontract under exceptional cir-
cumstances when necessary to meet the needs of the agency. A de-
termination to waive the applicability of the standards under this 
subparagraph shall be set forth in writing and shall include a 
statement of the circumstances justifying the waiver. 
(C) RESTRICTION ON DELEGATION OF AUTHORITY.—The head 
of an executive agency may not delegate the authority under sub-
paragraph (A) or (B) to an official in the executive agency below 
the senior policymaking level in the executive agency. 
(D) CONTENTS OF FEDERAL ACQUISITION REGULATION.—The 
Federal Acquisition Regulation shall include— 
(i) criteria for selecting an official to be delegated authority 
to grant waivers under subparagraph (A) or (B); and 
(ii) the specific circumstances under which the waiver may 
be granted. 
(E) REPORT.—The head of each executive agency shall report 
the waivers granted under subparagraphs (A) and (B) for that 
agency to the Board on an annual basis. 
(c) REQUIRED BOARD ACTION FOR PRESCRIBING STANDARDS AND IN-
TERPRETATIONS.—Before prescribing cost accounting standards and inter-
pretations, the Board shall— 
(1) take into account, after consultation and discussions with the 
Comptroller General, professional accounting organizations, contrac-
tors, and other interested parties— 
(A) the probable costs of implementation, including any infla-
tionary effects, compared to the probable benefits; 
(B) the advantages, disadvantages, and improvements antici-
pated in the pricing and administration of, and settlement of dis-
putes concerning, contracts; and 
(C) the scope of, and alternatives available to, the action pro-
posed to be taken; 
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(2) prepare and publish a report in the Federal Register on the 
issues reviewed under paragraph (1); 
(3)(A) publish an advanced notice of proposed rulemaking in the 
Federal Register to solicit comments on the report prepared under 
paragraph (2); 
(B) provide all parties affected at least 60 days after publication to 
submit their views and comments; and 
(C) during the 60-day period, consult with the Comptroller General 
and consider any recommendation the Comptroller General may make; 
and 
(4) publish a notice of proposed rulemaking in the Federal Register 
and provide all parties affected at least 60 days after publication to 
submit their views and comments. 
(d) EFFECTIVE DATES.—Rules, regulations, cost accounting standards, 
and modifications thereof prescribed or amended under this chapter shall 
have the full force and effect of law, and shall become effective within 120 
days after publication in the Federal Register in final form, unless the 
Board determines that a longer period is necessary. The Board shall deter-
mine implementation dates for contractors and subcontractors. The dates 
may not be later than the beginning of the second fiscal year of the con-
tractor or subcontractor after the standard becomes effective. 
(e) ACCOMPANYING
MATERIAL.—Rules, regulations, cost accounting 
standards, and modifications thereof prescribed or amended under this 
chapter shall be accompanied by prefatory comments and by illustrations, 
if necessary. 
(f) IMPLEMENTING REGULATIONS.—The Board shall prescribe regula-
tions for the implementation of cost accounting standards prescribed or in-
terpreted under this section. The regulations shall be incorporated into the 
Federal Acquisition Regulation and shall require contractors and sub-
contractors as a condition of contracting with the Federal Government to— 
(1) disclose in writing their cost accounting practices, including 
methods of distinguishing direct costs from indirect costs and the basis 
used for allocating indirect costs; and 
(2) agree to a contract price adjustment, with interest, for any in-
creased costs the Federal Government pays the contractor or subcon-
tractor because of a change in the contractor’s or subcontractor’s cost 
accounting practices or a failure by the contractor or subcontractor to 
comply with applicable cost accounting standards. 
(g) NONAPPLICABILITY OF CERTAIN SECTIONS OF TITLE 5.—Functions 
exercised under this chapter are not subject to sections 551, 553 to 559, 
and 701 to 706 of title 5. 
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§ 1503. Contract price adjustment 
(a) DISAGREEMENT CONSTITUTES A DISPUTE.—If the Federal Govern-
ment and a contractor or subcontractor fail to agree on a contract price ad-
justment, including whether the contractor or subcontractor has complied 
with the applicable cost accounting standards, the disagreement will con-
stitute a dispute under chapter 69 of this title. 
(b) AMOUNT OF ADJUSTMENT.—A contract price adjustment undertaken 
under section 1502(f)(2) of this title shall be made, where applicable, on 
relevant contracts between the Federal Government and the contractor that 
are subject to the cost accounting standards so as to protect the Federal 
Government from payment, in the aggregate, of increased costs, as defined 
by the Cost Accounting Standards Board. The Federal Government may not 
recover costs greater than the aggregate increased cost to the Federal Gov-
ernment on the relevant contracts subject to the price adjustment unless the 
contractor made a change in its cost accounting practices of which it was 
aware or should have been aware at the time of the price negotiation and 
which it failed to disclose to the Federal Government. 
(c) INTEREST.—The interest rate applicable to a contract price adjust-
ment is the annual rate of interest established under section 6621 of the 
Internal Revenue Code of 1986 (26 U.S.C. 6621) for the period. Interest 
accrues from the time payments of the increased costs were made to the 
contractor or subcontractor to the time the Federal Government receives full 
compensation for the price adjustment. 
§ 1504. Effect on other standards and regulations 
(a) PREVIOUSLY EXISTING STANDARDS.—All cost accounting standards, 
waivers, exemptions, interpretations, modifications, rules, and regulations 
prescribed by the Cost Accounting Standards Board under section 719 of 
the Defense Production Act of 1950 (50 App. U.S.C. 2168)— 
(1) remain in effect until amended, superseded, or rescinded by the 
Board under this chapter; and 
(2) are subject to the provisions of this division in the same manner 
as if prescribed by the Board under this division. 
(b) INCONSISTENT AGENCY REGULATIONS.—To ensure that a regulation 
or proposed regulation of an executive agency is not inconsistent with a cost 
accounting standard prescribed or amended under this chapter, the Admin-
istrator, under the authority in sections 1121, 1122(a) to (c)(1), 1125, 
1126, 1130, 1131, and 2304 of this title, shall rescind or deny the promul-
gation of the inconsistent regulation or proposed regulation and take other 
appropriate action authorized under sections 1121, 1122(a) to (c)(1), 1125, 
1126, 1130, 1131, and 2304. 
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(c) COSTS NOT SUBJECT TO DIFFERENT STANDARDS.—Costs that are 
the subject of cost accounting standards prescribed under this chapter are 
not subject to regulations established by another executive agency that dif-
fer from those standards with respect to the measurement, assignment, and 
allocation of those costs. 
§ 1505. Examinations 
To determine whether a contractor or subcontractor has complied with 
cost accounting standards prescribed under this chapter and has followed 
consistently the contractor’s or subcontractor’s disclosed cost accounting 
practices, an authorized representative of the head of the agency concerned, 
of the offices of inspector general established under the Inspector General 
Act of 1978 (5 App. U.S.C.), or of the Comptroller General shall have the 
right to examine and copy documents, papers, or records of the contractor 
or subcontractor relating to compliance with the standards. 
§ 1506. Authorization of appropriations 
Necessary amounts may be appropriated to carry out this chapter. 
CHAPTER 17—AGENCY RESPONSIBILITIES AND 
PROCEDURES 
Sec. 
1701.
Cooperation with the Administrator. 
1702.
Chief Acquisition Officers and senior procurement executives. 
1703.
Acquisition workforce. 
1704.
Advocates for competition. 
1705.
Personnel evaluation. 
1706.
Publication of proposed regulations. 
1707.
Procurement notice. 
1708.
Contracting functions performed by Federal personnel. 
1709.
Value engineering. 
1710.
Record requirements. 
1711.
Procurement data. 
§ 1701. Cooperation with the Administrator 
On the request of the Administrator, each executive agency shall— 
(1) make its services, personnel, and facilities available to the Office 
of Federal Procurement Policy to the greatest practicable extent for the 
performance of functions under this division; and 
(2) except when prohibited by law, furnish to the Administrator, and 
give the Administrator access to, all information and records in its pos-
session that the Administrator may determine to be necessary for the 
performance of the functions of the Office. 
§ 1702. Chief Acquisition Officers and senior procurement 
executives 
(a) APPOINTMENT OR DESIGNATION OF CHIEF ACQUISITION OFFICER.— 
The head of each executive agency described in section 901(b)(1) (other 
than the Department of Defense) or 901(b)(2)(C) of title 31 with a Chief 
Financial Officer appointed or designated under section 901(a) of title 31 
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shall appoint or designate a non-career employee as Chief Acquisition Offi-
cer for the agency. 
(b) AUTHORITY AND FUNCTIONS OF CHIEF ACQUISITION OFFICER.— 
(1) PRIMARY DUTY.—The primary duty of a Chief Acquisition Offi-
cer is acquisition management. 
(2) ADVICE AND ASSISTANCE.—A Chief Acquisition Officer shall ad-
vise and assist the head of the executive agency and other agency offi-
cials to ensure that the mission of the executive agency is achieved 
through the management of the agency’s acquisition activities. 
(3) OTHER FUNCTIONS.—The functions of each Chief Acquisition 
Officer include— 
(A) monitoring the performance of acquisition activities and ac-
quisition programs of the executive agency, evaluating the per-
formance of those programs on the basis of applicable performance 
measurements, and advising the head of the executive agency re-
garding the appropriate business strategy to achieve the mission 
of the executive agency; 
(B) increasing the use of full and open competition in the acqui-
sition of property and services by the executive agency by estab-
lishing policies, procedures, and practices that ensure that the ex-
ecutive agency receives a sufficient number of sealed bids or com-
petitive proposals from responsible sources to fulfill the Federal 
Government’s requirements (including performance and delivery 
schedules) at the lowest cost or best value considering the nature 
of the property or service procured; 
(C) increasing appropriate use of performance-based contracting 
and performance specifications; 
(D) making acquisition decisions consistent with all applicable 
laws and establishing clear lines of authority, accountability, and 
responsibility for acquisition decisionmaking within the executive 
agency; 
(E) managing the direction of acquisition policy for the execu-
tive agency, including implementation of the unique acquisition 
policies, regulations, and standards of the executive agency; 
(F) developing and maintaining an acquisition career manage-
ment program in the executive agency to ensure that there is an 
adequate professional workforce; and 
(G) as part of the strategic planning and performance evalua-
tion process required under section 306 of title 5 and sections 
1105(a)(28), 1115, 1116, and 9703 (added by section 5(a) of 
Public Law 103–62 (107 Stat. 289)) of title 31— 
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(i) assessing the requirements established for agency per-
sonnel regarding knowledge and skill in acquisition resources 
management and the adequacy of those requirements for fa-
cilitating the achievement of the performance goals estab-
lished for acquisition management; 
(ii) developing strategies and specific plans for hiring, 
training, and professional development to rectify a deficiency 
in meeting those requirements; and 
(iii) reporting to the head of the executive agency on the 
progress made in improving acquisition management capa-
bility. 
(c) SENIOR PROCUREMENT EXECUTIVE.— 
(1) DESIGNATION.—The head of each executive agency shall des-
ignate a senior procurement executive. 
(2) RESPONSIBILITY.—The senior procurement executive is respon-
sible for management direction of the procurement system of the execu-
tive agency, including implementation of the unique procurement poli-
cies, regulations, and standards of the executive agency. 
(3) WHEN
CHIEF
ACQUISITION
OFFICER
APPOINTED
OR
DES-
IGNATED.—For an executive agency for which a Chief Acquisition Offi-
cer has been appointed or designated under subsection (a), the head 
of the executive agency shall— 
(A) designate the Chief Acquisition Officer as the senior pro-
curement executive for the executive agency; or 
(B) ensure that the senior procurement executive designated 
under paragraph (1) reports directly to the Chief Acquisition Offi-
cer without intervening authority. 
§ 1703. Acquisition workforce 
(a) DESCRIPTION.—For purposes of this section, the acquisition work-
force of an agency consists of all employees serving in acquisition positions 
listed in subsection (g)(1)(A). 
(b) APPLICABILITY.— 
(1) NONAPPLICABILITY TO CERTAIN EXECUTIVE AGENCIES.—Except 
as provided in subsection (i), this section does not apply to an executive 
agency that is subject to chapter 87 of title 10. 
(2) APPLICABILITY OF PROGRAMS.—The programs established by 
this section apply to the acquisition workforce of each executive agency. 
(c) MANAGEMENT POLICIES.— 
(1) DUTIES OF HEAD OF EXECUTIVE AGENCY.— 
(A) ESTABLISH POLICIES AND PROCEDURES.—After consulta-
tion with the Administrator, the head of each executive agency 
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shall establish policies and procedures for the effective manage-
ment (including accession, education, training, career development, 
and performance incentives) of the acquisition workforce of the 
agency. The development of acquisition workforce policies under 
this section shall be carried out consistent with the merit system 
principles set forth in section 2301(b) of title 5. 
(B) ENSURE UNIFORM IMPLEMENTATION.—The head of each 
executive agency shall ensure that, to the maximum extent prac-
ticable, acquisition workforce policies and procedures established 
are uniform in their implementation throughout the agency. 
(2) DUTIES
OF
ADMINISTRATOR.—The Administrator shall issue 
policies to promote uniform implementation of this section by executive 
agencies, with due regard for differences in program requirements 
among agencies that may be appropriate and warranted in view of the 
agency mission. The Administrator shall coordinate with the Deputy 
Director for Management of the Office of Management and Budget to 
ensure that the policies are consistent with the policies and procedures 
established, and enhanced system of incentives provided, pursuant to 
section 5051(c) of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103–355, 108 Stat. 3351). The Administrator shall evalu-
ate the implementation of this section by executive agencies. 
(d) AUTHORITY AND RESPONSIBILITY OF SENIOR PROCUREMENT EXEC-
UTIVE.—Subject to the authority, direction, and control of the head of an 
executive agency, the senior procurement executive of the agency shall carry 
out all powers, functions, and duties of the head of the agency with respect 
to implementing this section. The senior procurement executive shall ensure 
that the policies of the head of the executive agency established in accord-
ance with this section are implemented throughout the agency. 
(e) COLLECTING AND MAINTAINING INFORMATION.—The Administrator 
shall ensure that the heads of executive agencies collect and maintain stand-
ardized information on the acquisition workforce related to implementing 
this section. To the maximum extent practicable, information requirements 
shall conform to standards the Director of the Office of Personnel Manage-
ment establishes for the Central Personnel Data File. 
(f) CAREER DEVELOPMENT.— 
(1) CAREER PATHS.— 
(A) IDENTIFICATION.—The head of each executive agency shall 
ensure that appropriate career paths for personnel who desire to 
pursue careers in acquisition are identified in terms of the edu-
cation, training, experience, and assignments necessary for career 
progression to the most senior acquisition positions. The head of 
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each executive agency shall make available information on those 
career paths. 
(B) CRITICAL DUTIES AND TASKS.—For each career path, the 
head of each executive agency shall identify the critical acquisition- 
related duties and tasks in which, at minimum, employees of the 
agency in the career path shall be competent to perform at full 
performance grade levels. For this purpose, the head of the execu-
tive agency shall provide appropriate coverage of the critical duties 
and tasks identified by the Director of the Federal Acquisition In-
stitute. 
(C) MANDATORY TRAINING AND EDUCATION.—For each career 
path, the head of each executive agency shall establish require-
ments for the completion of course work and related on-the-job 
training in the critical acquisition-related duties and tasks of the 
career path. The head of each executive agency also shall encour-
age employees to maintain the currency of their acquisition knowl-
edge and generally enhance their knowledge of related acquisition 
management disciplines through academic programs and other 
self-developmental activities. 
(2) PERFORMANCE INCENTIVES.—The head of each executive agency 
shall provide for an enhanced system of incentives to encourage excel-
lence in the acquisition workforce that rewards performance of employ-
ees who contribute to achieving the agency’s performance goals. The 
system of incentives shall include provisions that— 
(A) relate pay to performance (including the extent to which the 
performance of personnel in the workforce contributes to achieving 
the cost goals, schedule goals, and performance goals established 
for acquisition programs pursuant to section 3103(b) of this title); 
and 
(B) provide for consideration, in personnel evaluations and pro-
motion decisions, of the extent to which the performance of per-
sonnel in the workforce contributes to achieving the cost goals, 
schedule goals, and performance goals. 
(g) QUALIFICATION REQUIREMENTS.— 
(1) IN
GENERAL.—Subject to paragraph (2), the Administrator 
shall— 
(A) establish qualification requirements, including education re-
quirements, for— 
(i) entry-level positions in the General Schedule Con-
tracting series (GS–1102); 
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(ii) senior positions in the General Schedule Contracting 
series (GS–1102); 
(iii) all positions in the General Schedule Purchasing series 
(GS–1105); and 
(iv) positions in other General Schedule series in which sig-
nificant acquisition-related functions are performed; and 
(B) prescribe the manner and extent to which the qualification 
requirements shall apply to an individual serving in a position de-
scribed in subparagraph (A) at the time the requirements are es-
tablished. 
(2) RELATIONSHIP TO REQUIREMENTS APPLICABLE TO DEFENSE AC-
QUISITION WORKFORCE.—The Administrator shall establish qualifica-
tion requirements and make prescriptions under paragraph (1) that are 
comparable to those established for the same or equivalent positions 
pursuant to chapter 87 of title 10 with appropriate modifications. 
(3) APPROVAL OF REQUIREMENTS.—The Administrator shall submit 
any requirement established or prescription made under paragraph (1) 
to the Director of the Office of Personnel Management for approval. 
The Director is deemed to have approved the requirement or prescrip-
tion if the Director does not disapprove the requirement or prescription 
within 30 days after receiving it. 
(h) EDUCATION AND TRAINING.— 
(1) FUNDING LEVELS.—The head of an executive agency shall set 
forth separately the funding levels requested for educating and training 
the acquisition workforce in the budget justification documents sub-
mitted in support of the President’s budget submitted to Congress 
under section 1105 of title 31. 
(2) TUITION ASSISTANCE.—The head of an executive agency may 
provide tuition reimbursement in education (including a full-time 
course of study leading to a degree) in accordance with section 4107 
of title 5 for personnel serving in acquisition positions in the agency. 
(3) RESTRICTED OBLIGATION.—Amounts appropriated for education 
and training under this section may not be obligated for another pur-
pose. 
(i) TRAINING FUND.— 
(1) PURPOSES.—The purposes of this subsection are to ensure that 
the Federal acquisition workforce— 
(A) adapts to fundamental changes in the nature of Federal 
Government acquisition of property and services associated with 
the changing roles of the Federal Government; and 
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(B) acquires new skills and a new perspective to enable it to 
contribute effectively in the changing environment of the 21st cen-
tury. 
(2) ESTABLISHMENT AND MANAGEMENT OF FUND.—There is an ac-
quisition workforce training fund. The Administrator of General Serv-
ices shall manage the fund through the Federal Acquisition Institute 
to support the training of the acquisition workforce of the executive 
agencies, except as provided in paragraph (5). The Administrator of 
General Services shall consult with the Administrator in managing the 
fund. 
(3) CREDITS TO FUND.—Five percent of the fees collected by execu-
tive agencies (other than the Department of Defense) under the fol-
lowing contracts shall be credited to the fund: 
(A) Government-wide task and delivery-order contracts entered 
into under sections 4103 and 4105 of this title. 
(B) Government-wide contracts for the acquisition of informa-
tion technology as defined in section 11101 of title 40 and multi-
agency acquisition contracts for that technology authorized by sec-
tion 11314 of title 40. 
(C) multiple-award schedule contracts entered into by the Ad-
ministrator of General Services. 
(4) REMITTANCE BY HEAD OF EXECUTIVE AGENCY.—The head of an 
executive agency that administers a contract described in paragraph (3) 
shall remit to the General Services Administration the amount required 
to be credited to the fund with respect to the contract at the end of 
each quarter of the fiscal year. 
(5) TRANSFER AND USE OF FEES COLLECTED FROM DEPARTMENT 
OF DEFENSE.—The Administrator of General Services shall transfer to 
the Secretary of Defense fees collected from the Department of Defense 
pursuant to paragraph (3). The Defense Acquisition University shall 
use the fees for acquisition workforce training. 
(6) AMOUNTS NOT TO BE USED FOR OTHER PURPOSES.—The Ad-
ministrator of General Services, through the Office of Federal 
Procurememt Policy, shall ensure that amounts collected for training 
under this subsection are not used for a purpose other than the pur-
pose specified in paragraph (2). 
(7) AMOUNTS ARE IN ADDITION TO OTHER AMOUNTS FOR EDU-
CATION AND TRAINING.—Amounts credited to the fund are in addition 
to amounts requested and appropriated for education and training re-
ferred to in subsection (h)(1). 
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(8) AVAILABILITY OF AMOUNTS.—Amounts credited to the fund re-
main available to be expended only in the fiscal year for which they 
are credited and the 2 succeeding fiscal years. 
(9) EXPIRATION.—This subsection ceases to be effective 5 years 
after November 24, 2003. 
(j) RECRUITMENT PROGRAM.— 
(1) SHORTAGE
CATEGORY
POSITIONS.—For purposes of sections 
3304, 5333, and 5753 of title 5, the head of a department or agency 
of the Federal Government (other than the Secretary of Defense) may 
determine, under regulations prescribed by the Office of Personnel 
Management, that certain Federal acquisition positions (as described in 
subsection (g)(1)(A)) are shortage category positions in order to use 
the authorities in those sections to recruit and appoint highly qualified 
individuals directly to those positions in the department or agency. 
(2) REPORT.—Not later than March 31, 2007, the Director of the 
Office of Personnel Management, in consultation with the Adminis-
trator, shall submit to Congress a report on the implementation of this 
subsection. The report shall include— 
(A) a list of the departments and agencies that exercised the au-
thority provided in this subsection and whether the exercise of the 
authority was carried out in accordance with the regulations of the 
Office of Personnel Management; 
(B) the Director’s assessment of the efficacy of the exercise of 
the authority provided in this subsection in attracting employees 
with unusually high qualifications to the acquisition workforce; 
and 
(C) recommendations the Director considers appropriate on 
whether the authority to carry out the program should be ex-
tended. 
(3) TERMINATION OF AUTHORITY.—The head of a department or 
agency may not appoint an individual to a position of employment 
under this subsection after September 30, 2007. 
(k) REEMPLOYMENT WITHOUT LOSS OF ANNUITY.— 
(1) ESTABLISHMENT OF POLICIES AND PROCEDURES.—The head of 
each executive agency, after consultation with the Administrator and 
the Director of the Office of Personnel Management, shall establish 
policies and procedures under which the agency head may reemploy in 
an acquisition-related position (as described in subsection (g)(1)(A)) an 
individual receiving an annuity from the Civil Service Retirement and 
Disability Fund, on the basis of the individual’s service, without dis-
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continuing the annuity. The head of each executive agency shall keep 
the Administrator informed of the agency’s use of this authority. 
(2) CRITERIA FOR CONTINUATION OF ANNUITY.—Policies and proce-
dures established under paragraph (1) shall authorize the head of the 
executive agency, on a case-by-case basis, to continue an annuity if any 
of the following makes the reemployment of an individual essential: 
(A) The unusually high or unique qualifications of an individual 
receiving an annuity from the Civil Service Retirement and Dis-
ability Fund on the basis of the individual’s service. 
(B) The exceptional difficulty in recruiting or retaining a quali-
fied employee. 
(C) A temporary emergency hiring need. 
(3) SERVICE NOT SUBJECT TO CSRS OR FERS.—An individual reem-
ployed under this subsection shall not be deemed an employee for pur-
poses of chapter 83 or 84 of title 5. 
(4) REPORTING REQUIREMENT.—The Administrator shall submit an-
nually to the Committee on Oversight and Government Reform of the 
House of Representatives and the Committee on Homeland Security 
and Governmental Affairs of the Senate a report on the use of the au-
thority under this subsection, including the number of employees reem-
ployed under authority of this subsection. 
(5) SUNSET PROVISION.—The authority under this subsection ex-
pires on December 31, 2011. 
§ 1704. Advocates for competition 
(a) ESTABLISHMENT AND DESIGNATION.— 
(1) ESTABLISHMENT.—Each executive agency has an advocate for 
competition. 
(2) DESIGNATION.—The head of each executive agency shall— 
(A) designate for the executive agency and for each procuring 
activity of the executive agency one officer or employee serving in 
a position authorized for the executive agency on July 18, 1984 
(other than the senior procurement executive designated pursuant 
to section 1702(c) of this title) to serve as the advocate for com-
petition; 
(B) not assign those officers or employees duties or responsibil-
ities that are inconsistent with the duties and responsibilities of 
the advocates for competition; and 
(C) provide those officers or employees with the staff or assist-
ance necessary to carry out the duties and responsibilities of the 
advocate for competition, such as individuals who are specialists 
in engineering, technical operations, contract administration, fi-
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nancial management, supply management, and utilization of small 
and disadvantaged business concerns. 
(b) DUTIES AND FUNCTIONS.—The advocate for competition of an execu-
tive agency shall— 
(1) be responsible for challenging barriers to, and promoting full and 
open competition in, the procurement of property and services by the 
executive agency; 
(2) review the procurement activities of the executive agency; 
(3) identify and report to the senior procurement executive of the ex-
ecutive agency— 
(A) opportunities and actions taken to achieve full and open 
competition in the procurement activities of the executive agency; 
and 
(B) any condition or action which has the effect of unnecessarily 
restricting competition in the procurement actions of the executive 
agency; 
(4) prepare and transmit to the senior procurement executive an an-
nual report describing— 
(A) the advocate’s activities under this section; 
(B) new initiatives required to increase competition; and 
(C) remaining barriers to full and open competition; 
(5) recommend to the senior procurement executive— 
(A) goals and the plans for increasing competition on a fiscal 
year basis; and 
(B) a system of personal and organizational accountability for 
competition, which may include the use of recognition and awards 
to motivate program managers, contracting officers, and others in 
authority to promote competition in procurement programs; and 
(6) describe other ways in which the executive agency has empha-
sized competition in programs for procurement training and research. 
(c) RESPONSIBILITIES.—The advocate for competition for each procuring 
activity is responsible for promoting full and open competition, promoting 
the acquisition of commercial items, and challenging barriers to acquisition, 
including unnecessarily restrictive statements of need, unnecessarily detailed 
specifications, and unnecessarily burdensome contract clauses. 
§ 1705. Personnel evaluation 
The head of each executive agency subject to division C shall ensure, with 
respect to the employees of that agency whose primary duties and respon-
sibilities pertain to the award of contracts subject to the provisions of the 
Small Business and Federal Procurement Competition Enhancement Act of 
1984 (Public Law 98–577, 98 Stat. 3066), that the performance appraisal 
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system applicable to those employees affords appropriate recognition to, 
among other factors, efforts to— 
(1) increase competition and achieve cost savings through the elimi-
nation of procedures that unnecessarily inhibit full and open competi-
tion; 
(2) further the purposes of the Small Business and Federal Procure-
ment Competition Enhancement Act of 1984 (Public Law 98–577, 98 
Stat. 3066) and the Defense Procurement Reform Act of 1984 (Public 
Law 98–525, title XII, 98 Stat. 2588); and 
(3) further other objectives and purposes of the Federal acquisition 
system authorized by law. 
§ 1706. Publication of proposed regulations 
(a) COVERED POLICIES, REGULATIONS, PROCEDURES, AND FORMS.— 
(1) REQUIRED COMMENT PERIOD.—Except as provided in subsection 
(d), a procurement policy, regulation, procedure, or form (including an 
amendment or modification thereto) may not take effect until 60 days 
after it is published for public comment in the Federal Register pursu-
ant to subsection (b) if it— 
(A) relates to the expenditure of appropriated amounts; and 
(B)(i) has a significant effect beyond the internal operating pro-
cedures of the agency issuing the policy, regulation, procedure, or 
form; or 
(ii) has a significant cost or administrative impact on contrac-
tors or offerors. 
(2) EXCEPTION.—A policy, regulation, procedure, or form may take 
effect earlier than 60 days after the publication date when there are 
compelling circumstances for the earlier effective date, but the effective 
date may not be less than 30 days after the publication date. 
(b) PUBLICATION IN FEDERAL REGISTER AND COMMENT PERIOD.—Sub-
ject to subsection (c), the head of the agency shall have published in the 
Federal Register a notice of the proposed procurement policy, regulation, 
procedure, or form and provide for a public comment period for receiving 
and considering the views of all interested parties on the proposal. The 
length of the comment period may not be less than 30 days. 
(c) CONTENTS OF NOTICE.—Notice of a proposed procurement policy, 
regulation, procedure, or form prepared for publication in the Federal Reg-
ister shall include— 
(1) the text of the proposal or, if it is impracticable to publish the 
full text of the proposal, a summary of the proposal and a statement 
specifying the name, address, and telephone number of the officer or 
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employee of the executive agency from whom the full text may be ob-
tained; and 
(2) a request for interested parties to submit comments on the pro-
posal and the name and address of the officer or employee of the Fed-
eral Government designated to receive the comments. 
(d) WAIVER.—The requirements of subsections (a) and (b) may be waived 
by the officer authorized to issue a procurement policy, regulation, proce-
dure, or form if urgent and compelling circumstances make compliance with 
the requirements impracticable. 
(e) EFFECTIVENESS OF POLICY, REGULATION, PROCEDURE, OR FORM.— 
(1) TEMPORARY BASIS.—A procurement policy, regulation, proce-
dure, or form for which the requirements of subsections (a) and (b) 
are waived under subsection (d) is effective on a temporary basis if— 
(A) a notice of the policy, regulation, procedure, or form is pub-
lished in the Federal Register and includes a statement that the 
policy, regulation, procedure, or form is temporary; and 
(B) provision is made for a public comment period of 30 days 
beginning on the date on which the notice is published. 
(2) FINAL POLICY, REGULATION, PROCEDURE, OR FORM.—After con-
sidering the comments received, the head of the agency waiving the re-
quirements of subsections (a) and (b) under subsection (d) may issue 
the final procurement policy, regulation, procedure, or form. 
§ 1707. Procurement notice 
(a) NOTICE REQUIREMENT.—Except as provided in subsection (b)— 
(1) an executive agency intending to solicit bids or proposals for a 
contract for property or services for a price expected to exceed 
$10,000, but not to exceed $25,000, shall post, for not less than 10 
days, in a public place at the contracting office issuing the solicitation 
a notice of solicitation described in subsection (c); 
(2) an executive agency shall publish a notice of solicitation described 
in subsection (c) if the agency intends to— 
(A) solicit bids or proposals for a contract for property or serv-
ices for a price expected to exceed $25,000; or 
(B) place an order, expected to exceed $25,000, under a basic 
agreement, basic ordering agreement, or similar arrangement; and 
(3) an executive agency awarding a contract for property or services 
for a price exceeding $25,000, or placing an order exceeding $25,000 
under a basic agreement, basic ordering agreement, or similar arrange-
ment, shall furnish for publication a notice announcing the award or 
order if there is likely to be a subcontract under the contract or order. 
(b) EXEMPTIONS.— 
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(1) IN GENERAL.—A notice is not required under subsection (a) if— 
(A) the proposed procurement is for an amount not greater 
than the simplified acquisition threshold and is to be conducted 
by— 
(i) using widespread electronic public notice of the solicita-
tion in a form that allows convenient and universal user ac-
cess through a single, Government-wide point of entry; and 
(ii) permitting the public to respond to the solicitation elec-
tronically; 
(B) the notice would disclose the executive agency’s needs and 
disclosure would compromise national security; 
(C) the proposed procurement would result from acceptance 
of— 
(i) an unsolicited proposal that demonstrates a unique and 
innovative research concept and publication of a notice of the 
unsolicited research proposal would disclose the originality of 
thought or innovativeness of the proposal or would disclose 
proprietary information associated with the proposal; or 
(ii) a proposal submitted under section 9 of the Small 
Business Act (15 U.S.C. 638); 
(D) the procurement is made against an order placed under a 
requirements contract, a task order contract, or a delivery order 
contract; 
(E) the procurement is made for perishable subsistence supplies; 
(F) the procurement is for utility services, other than tele-
communication services, and only one source is available; 
(G) the procurement is for the services of an expert for use in 
any litigation or dispute (including any reasonably foreseeable liti-
gation or dispute) involving the Federal Government in a trial, 
hearing, or proceeding before a court, administrative tribunal, or 
agency, or in any part of an alternative dispute resolution process, 
whether or not the expert is expected to testify; or 
(H) the procurement is by the Secretary of Homeland Security 
pursuant to the special procedures provided in section 833(c) of 
the Homeland Security Act of 2002 (6 U.S.C. 393(c)). 
(2) CERTAIN
PROCUREMENTS.—The requirements of subsection 
(a)(2) do not apply to a procurement— 
(A) under conditions described in paragraph (2), (3), (4), (5), 
or (7) of section 3303(a) of this title or paragraph (2), (3), (4), 
(5), or (7) of section 2304(c) of title 10; or 
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(B) for which the head of the executive agency makes a deter-
mination in writing, after consultation with the Administrator and 
the Administrator of the Small Business Administration, that it is 
not appropriate or reasonable to publish a notice before issuing a 
solicitation. 
(3) IMPLEMENTATION CONSISTENT WITH INTERNATIONAL AGREE-
MENTS.—Paragraph (1)(A) shall be implemented in a manner con-
sistent with applicable international agreements. 
(c) CONTENTS OF NOTICE.—Each notice of solicitation required by para-
graph (1) or (2) of subsection (a) shall include— 
(1) an accurate description of the property or services to be con-
tracted for, which description— 
(A) shall not be unnecessarily restrictive of competition; and 
(B) shall include, as appropriate, the agency nomenclature, Na-
tional Stock Number or other part number, and a brief description 
of the item’s form, fit, or function, physical dimensions, predomi-
nant material of manufacture, or similar information that will as-
sist a prospective contractor to make an informed business judg-
ment as to whether a copy of the solicitation should be requested; 
(2) provisions that— 
(A)(i) state whether the technical data required to respond to 
the solicitation will not be furnished as part of the solicitation; and 
(ii) identify the source in the Federal Government, if any, from 
which the technical data may be obtained; and 
(B)(i) state whether an offeror or its product or service must 
meet a qualification requirement in order to be eligible for award; 
and 
(ii) if so, identify the office from which the qualification require-
ment may be obtained; 
(3) the name, business address, and telephone number of the con-
tracting officer; 
(4) a statement that all responsible sources may submit a bid, pro-
posal, or quotation (as appropriate) that the agency shall consider; 
(5) in the case of a procurement using procedures other than com-
petitive procedures, a statement of the reason justifying the use of 
those procedures and the identity of the intended source; and 
(6) in the case of a contract in an amount estimated to be greater 
than $25,000 but not greater than the simplified acquisition threshold, 
or a contract for the procurement of commercial items using special 
simplified procedures— 
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(A) a description of the procedures to be used in awarding the 
contract; and 
(B) a statement specifying the periods for prospective offerors 
and the contracting officer to take the necessary preaward and 
award actions. 
(d) ELECTRONIC PUBLICATION OF NOTICE OF SOLICITATION, AWARD, OR 
ORDER.—A notice of solicitation, award, or order required to be published 
under subsection (a) shall be published by electronic means. The notice 
must be electronically accessible in a form that allows convenient and uni-
versal user access through the single Government-wide point of entry des-
ignated in the Federal Acquisition Regulation. 
(e) TIME LIMITATIONS.— 
(1) ISSUING NOTICE OF SOLICITATION AND ESTABLISHING DEAD-
LINE FOR SUBMITTING BIDS AND PROPOSALS.—An executive agency re-
quired by subsection (a)(2) to publish a notice of solicitation may not— 
(A) issue the solicitation earlier than 15 days after the date on 
which the notice is published; or 
(B) in the case of a contract or order expected to be greater 
than the simplified acquisition threshold, establish a deadline for 
the submission of all bids or proposals in response to the notice 
required by subsection (a)(2) that— 
(i) in the case of a solicitation for research and develop-
ment, is earlier than 45 days after the date the notice re-
quired for a bid or proposal for a contract described in sub-
section (a)(2)(A) is published; 
(ii) in the case of an order under a basic agreement, basic 
ordering agreement, or similar arrangement, is earlier than 
30 days after the date the notice required for an order de-
scribed in subsection (a)(2)(B) is published; or 
(iii) in any other case, is earlier than 30 days after the 
date the solicitation is issued. 
(2) ESTABLISHING
DEADLINE
WHEN
NONE
PROVIDED
BY
STAT-
UTE.—An executive agency shall establish a deadline for the submis-
sion of all bids or proposals in response to a solicitation for which a 
deadline is not provided by statute. Each deadline for the submission 
of offers shall afford potential offerors a reasonable opportunity to re-
spond. 
(3) FLEXIBLE DEADLINES.—The Administrator shall prescribe regu-
lations defining limited circumstances in which flexible deadlines can be 
used under paragraph (1) for the issuance of solicitations and the sub-
mission of bids or proposals for the procurement of commercial items. 
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(f) CONSIDERATION OF CERTAIN TIMELY RECEIVED OFFERS.—An exec-
utive agency intending to solicit offers for a contract for which a notice of 
solicitation is required to be posted under subsection (a)(1) shall ensure that 
contracting officers consider each responsive offer timely received from an 
offeror. 
(g) AVAILABILITY OF COMPLETE SOLICITATION PACKAGE AND PAYMENT 
OF FEE.—An executive agency shall make available to a business concern, 
or the authorized representative of a concern, the complete solicitation pack-
age for any on-going procurement announced pursuant to a notice of solici-
tation under subsection (a). An executive agency may require the payment 
of a fee, not exceeding the actual cost of duplication, for a copy of the pack-
age. 
§ 1708. Contracting functions performed by Federal per-
sonnel 
(a) COVERED PERSONNEL.—Personnel referred to in subsection (b) are— 
(1) an employee, as defined in section 2105 of title 5; 
(2) a member of the armed forces; and 
(3) an individual assigned to a Federal agency pursuant to sub-
chapter VI of chapter 33 of title 5. 
(b) LIMITATION ON PAYMENT FOR ADVISORY AND ASSISTANCE SERV-
ICES.—No individual who is not an individual described in subsection (a) 
may be paid by an executive agency for services to conduct evaluations or 
analyses of any aspect of a proposal submitted for an acquisition unless per-
sonnel described in subsection (a) with adequate training and capabilities 
to perform the evaluations and analyses are not readily available in the 
agency or another Federal agency. When administering this subsection, the 
head of each executive agency shall determine in accordance with standards 
and procedures prescribed in the Federal Acquisition Regulation whether— 
(1) a sufficient number of personnel described in subsection (a) in 
the agency or another Federal agency are readily available to perform 
a particular evaluation or analysis for the head of the executive agency 
making the determination; and 
(2) the readily available personnel have the training and capabilities 
necessary to perform the evaluation or analysis. 
(c) CERTAIN RELATIONSHIP NOT AFFECTED.—This section does not af-
fect the relationship between the Federal Government and a Federally fund-
ed research and development center. 
§ 1709. Value engineering 
Each executive agency shall establish and maintain cost-effective proce-
dures and processes for analyzing the functions of a program, project, sys-
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tem, product, item of equipment, building, facility, service, or supply of the 
agency. The analysis shall be— 
(1) performed by qualified agency or contractor personnel; and 
(2) directed at improving performance, reliability, quality, safety, 
and life cycle costs. 
§ 1710. Record requirements 
(a) MAINTAINING RECORDS ON COMPUTER.—Each executive agency shall 
establish and maintain for 5 years a computer file, by fiscal year, containing 
unclassified records of all procurements greater than the simplified acquisi-
tion threshold in that fiscal year. 
(b) CONTENTS.—The record established under subsection (a) shall in-
clude, with respect to each procurement carried out using— 
(1) competitive procedures— 
(A) the date of contract award; 
(B) information identifying the source to whom the contract was 
awarded; 
(C) the property or services the Federal Government obtains 
under the procurement; and 
(D) the total cost of the procurement; or 
(2) procedures other than competitive procedures— 
(A) the information described in paragraph (1); 
(B) the reason under section 3303(a) of this title or section 
2304(c) of title 10 for using the procedures; and 
(C) the identity of the organization or activity that conducted 
the procurement. 
(c) SEPARATE RECORD CATEGORY FOR PROCUREMENTS RESULTING IN 
ONE BID OR PROPOSAL.—Information included in a record pursuant to 
subsection (b)(1) that relates to procurements resulting in the submission 
of a bid or proposal by only one responsible source shall be separately cat-
egorized from the information relating to other procurements included in 
the record. The record of that information shall be designated ‘‘noncompeti-
tive procurements using competitive procedures’’. 
(d) TRANSMISSION AND DATA SYSTEM ENTRY OF INFORMATION.—Infor-
mation included in the record established and maintained under subsection 
(a) shall be transmitted to the Administrator of General Services and shall 
be entered in the Federal Procurement Data System referred to in section 
1122(a)(4) of this title. 
§ 1711. Procurement data 
(a) DEFINITIONS.—In this section: 
(1) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.—The term 
‘‘qualified HUBZone small business concern’’ has the meaning given 
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that term in section 3(p) of the Small Business Act (15 U.S.C. 
632(p)). 
(2) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY SO-
CIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.—The term 
‘‘small business concern owned and controlled by socially and economi-
cally disadvantaged individuals’’ has the meaning given that term in 
section 8(d) of the Small Business Act (15 U.S.C. 637(d)). 
(3) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED
BY 
WOMEN.—The term ‘‘small business concern owned and controlled by 
women’’ has the meaning given that term in section 8(d) of the Small 
Business Act (15 U.S.C. 637(d)) and section 204 of the Women’s 
Business Ownership Act of 1988 (Public Law 100–533, 102 Stat. 
2692). 
(b) REPORTING.—Each Federal agency shall report to the Office of Fed-
eral Procurement Policy the number of qualified HUBZone small business 
concerns, the number of small businesses owned and controlled by women, 
and the number of small business concerns owned and controlled by socially 
and economically disadvantaged individuals, by gender, that are first time 
recipients of contracts from the agency. The Office shall take appropriate 
action to ascertain, for each fiscal year, the number of those small busi-
nesses that have newly entered the Federal market. 
CHAPTER 19—SIMPLIFIED ACQUISITION PROCEDURES 
Sec. 
1901.
Simplified acquisition procedures. 
1902.
Procedures applicable to purchases below micro-purchase threshold. 
1903.
Special emergency procurement authority. 
1904.
Certain transactions for defense against attack. 
1905.
List of laws inapplicable to contracts or subcontracts not greater than simplified acqui-
sition threshold. 
1906.
List of laws inapplicable to procurements of commercial items. 
1907.
List of laws inapplicable to procurements of commercially available off-the-shelf items. 
1908.
Inflation adjustment of acquisition-related dollar thresholds. 
§ 1901. Simplified acquisition procedures 
(a) WHEN PROCEDURES ARE TO BE USED.—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) PROHIBITION ON DIVIDING PURCHASES.—A proposed purchase or 
contract for an amount above the simplified acquisition threshold may not 
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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) REPORT.—Until October 1, 2004, procuring activities shall continue 
to report under section 1710(d) of this title procurement awards of at least 
$25,000, but less than $100,000, in conformity with the procedures for the 
reporting of a contract award greater than $25,000 that were in effect on 
October 1, 1992. 
(f) 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 1707 of this title 
and, as provided in section 1707(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 3303(d) 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 
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). 
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(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— 
(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 
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(3) the $5,000,000 limitation in sections 1901(a)(2) and 3304(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 
be used when entering into agreements to carry out projects under sec-
tion 845(a) of that Act and that the period of authority to carry out 
projects under section 845(a) of that Act terminates as provided in sec-
tion 845(i) of that Act. 
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(3) APPLICATION OF REQUIREMENTS AND CONDITIONS.—In applying 
the requirements and conditions of section 845 of that Act under this 
subsection— 
(A) section 845(c) of that Act shall apply with respect to proto-
type projects carried out under paragraph (2); and 
(B) the Director of the Office of Management and Budget shall 
perform the functions of the Secretary of Defense under section 
845(d) of that Act. 
(4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES.— 
(A) OFFICE OF MANAGEMENT AND BUDGET.—The head of an 
executive agency may exercise authority under this subsection for 
a project only if authorized by the Director of the Office of Man-
agement and Budget. 
(B) DEPARTMENT OF HOMELAND SECURITY.—Authority under 
this subsection does not apply to the Secretary of Homeland Secu-
rity while section 831 of the Homeland Security Act of 2002 (6 
U.S.C. 391) is in effect. 
(b) REGULATIONS.—The Director of the Office of Management and 
Budget shall prescribe regulations to carry out this section. No transaction 
may be conducted under the authority of this section before the regulations 
take effect. 
(c) ANNUAL REPORT.—The annual report of the head of an executive 
agency that is required under section 2371(h) of title 10, as applied to the 
head of the executive agency by subsection (a), shall be submitted to the 
Committee on Homeland Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government Reform of the House of 
Representatives. 
(d) TERMINATION OF AUTHORITY.—The authority to carry out trans-
actions under subsection (a) terminates on September 30, 2008. 
§ 1905. List of laws inapplicable to contracts or subcontracts 
not greater than simplified acquisition threshold 
(a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning 
given that term in section 1301 of this title. 
(b) INCLUSION IN FEDERAL ACQUISITION REGULATION.— 
(1) IN GENERAL.—The Federal Acquisition Regulation shall include 
a list of provisions of law that are inapplicable to contracts or sub-
contracts in amounts not greater than the simplified acquisition thresh-
old. A provision of law properly included on the list pursuant to para-
graph (2) does not apply to contracts or subcontracts in amounts not 
greater than the simplified acquisition threshold that are made by an 
executive agency. This section does not render a provision of law not 
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included on the list inapplicable to contracts and subcontracts in 
amounts not greater than the simplified acquisition threshold. 
(2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of law 
described in subsection (c) that is enacted after October 13, 1994, shall 
be included on the list of inapplicable provisions of laws required by 
paragraph (1) unless the Council makes a written determination that 
it would not be in the best interest of the Federal Government to ex-
empt contracts or subcontracts in amounts not greater than the sim-
plified acquisition threshold from the applicability of the provision. 
(c) COVERED LAW.—A provision of law referred to in subsection (b)(2) 
is a provision of law that the Council determines sets forth policies, proce-
dures, requirements, or restrictions for the procurement of property or serv-
ices by the Federal Government, except for a provision of law that— 
(1) provides for criminal or civil penalties; or 
(2) specifically refers to this section and provides that, notwith-
standing this section, it shall be applicable to contracts or subcontracts 
in amounts not greater than the simplified acquisition threshold. 
(d) PETITION.—A person may petition the Administrator to take appro-
priate action when a provision of law described in subsection (c) is not in-
cluded on the list of inapplicable provisions of law as required by subsection 
(b) and the Council has not made a written determination pursuant to sub-
section (b)(2). The Administrator shall revise the Federal Acquisition Regu-
lation to include the provision on the list of inapplicable provisions of law 
unless the Council makes a determination pursuant to subsection (b)(2) 
within 60 days after the petition is received. 
§ 1906. List of laws inapplicable to procurements of commer-
cial items 
(a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning 
given that term in section 1301 of this title. 
(b) CONTRACTS.— 
(1) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The Fed-
eral Acquisition Regulation shall include a list of provisions of law that 
are inapplicable to contracts for the procurement of commercial items. 
A provision of law properly included on the list pursuant to paragraph 
(2) does not apply to purchases of commercial items by an executive 
agency. This section does not render a provision of law not included 
on the list inapplicable to contracts for the procurement of commercial 
items. 
(2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of law 
described in subsection (d) that is enacted after October 13, 1994, 
shall be included on the list of inapplicable provisions of law required 
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by paragraph (1) unless the Council makes a written determination 
that it would not be in the best interest of the Federal Government 
to exempt contracts for the procurement of commercial items from the 
applicability of the provision. 
(c) SUBCONTRACTS.— 
(1) DEFINITION.—In this subsection, the term ‘‘subcontract’’ in-
cludes a transfer of commercial items between divisions, subsidiaries, 
or affiliates of a contractor or subcontractor. 
(2) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The Fed-
eral Acquisition Regulation shall include a list of provisions of law that 
are inapplicable to subcontracts under a contract or subcontract for the 
procurement of commercial items. A provision of law properly included 
on the list pursuant to paragraph (3) does not apply to those sub-
contracts. This section does not render a provision of law not included 
on the list inapplicable to subcontracts under a contract for the pro-
curement of commercial items. 
(3) PROVISIONS TO BE EXCLUDED FROM LIST.—A provision of law 
described in subsection (d) shall be included on the list of inapplicable 
provisions of law required by paragraph (2) unless the Council makes 
a written determination that it would not be in the best interest of the 
Federal Government to exempt subcontracts under a contract for the 
procurement of commercial items from the applicability of the provi-
sion. 
(4) WAIVER NOT AUTHORIZED.—This subsection does not authorize 
the waiver of the applicability of any provision of law with respect to 
any subcontract under a contract with a prime contractor reselling or 
distributing commercial items of another contractor without adding 
value. 
(d) COVERED LAW.—A provision of law referred to in subsections (b)(2) 
and (c) is a provision of law that the Council determines sets forth policies, 
procedures, requirements, or restrictions for the procurement of property or 
services by the Federal Government, except for a provision of law that— 
(1) provides for criminal or civil penalties; or 
(2) specifically refers to this section and provides that, notwith-
standing this section, it shall be applicable to contracts for the procure-
ment of commercial items. 
(e) PETITION.—A person may petition the Administrator to take appro-
priate action when a provision of law described in subsection (d) is not in-
cluded on the list of inapplicable provisions of law as required by subsection 
(b) or (c) and the Council has not made a written determination pursuant 
to subsection (b)(2) or (c)(3). The Administrator shall revise the Federal 
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Acquisition Regulation to include the provision on the list of inapplicable 
provisions of law unless the Council makes a determination pursuant to sub-
section (b)(2) or (c)(3) within 60 days after the petition is received. 
§ 1907. List of laws inapplicable to procurements of commer-
cially available off-the-shelf items 
(a) INCLUSION IN FEDERAL ACQUISITION REGULATION.— 
(1) IN GENERAL.—The Federal Acquisition Regulation shall include 
a list of provisions of law that are inapplicable to contracts for the pro-
curement of commercially available off-the-shelf items. A provision of 
law properly included on the list pursuant to paragraph (2) does not 
apply to contracts for the procurement of commercially available off- 
the-shelf items. This section does not render a provision of law not in-
cluded on the list inapplicable to contracts for the procurement of com-
mercially available off-the-shelf items. 
(2) LAWS TO BE INCLUDED.—A provision of law described in sub-
section (b) shall be included on the list of inapplicable provisions of law 
required by paragraph (1) unless the Administrator makes a written 
determination that it would not be in the best interest of the Federal 
Government to exempt contracts for the procurement of commercially 
available off-the-shelf items from the applicability of the provision. 
(3) OTHER AUTHORITIES OR RESPONSIBILITIES NOT AFFECTED.— 
This section does not modify, supersede, impair, or restrict authorities 
or responsibilities under— 
(A) section 15 of the Small Business Act (15 U.S.C. 644); or 
(B) bid protest procedures developed under the authority of— 
(i) subchapter V of chapter 35 of title 31; 
(ii) section 2305(e) and (f) of title 10; or 
(iii) sections 3706 and 3707 of this title. 
(b) COVERED LAW.—Except as provided in subsection (a)(3), a provision 
of law referred to in subsection (a)(1) is a provision of law that the Admin-
istrator determines imposes Federal Government-unique policies, proce-
dures, requirements, or restrictions for the procurement of property or serv-
ices on persons whom the Federal Government has awarded contracts for 
the procurement of commercially available off-the-shelf items, except for a 
provision of law that— 
(1) provides for criminal or civil penalties; or 
(2) specifically refers to this section and provides that, notwith-
standing this section, it shall be applicable to contracts for the procure-
ment of commercially available off-the-shelf items. 
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§ 1908. Inflation adjustment of acquisition-related dollar 
thresholds 
(a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning 
given that term in section 1301 of this title. 
(b) APPLICATION.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the require-
ment for adjustment under subsection (c) applies to a dollar threshold 
that is specified in law as a factor in defining the scope of the applica-
bility of a policy, procedure, requirement, or restriction provided in that 
law to the procurement of property or services by an executive agency, 
as the Council determines. 
(2) EXCEPTIONS.—Subsection (c) does not apply to dollar thresh-
olds— 
(A) in chapter 67 of this title; 
(B) in sections 3141 to 3144, 3146, and 3147 of title 40; or 
(C) the United States Trade Representative establishes pursu-
ant to title III of the Trade Agreements Act of 1979 (19 U.S.C. 
2511 et seq.). 
(3) RELATIONSHIP TO OTHER INFLATION ADJUSTMENT AUTHORI-
TIES.—This section supersedes the applicability of other provisions of 
law that provide for the adjustment of a dollar threshold that is adjust-
able under this section. 
(c) REQUIREMENT FOR PERIODIC ADJUSTMENT.— 
(1) BASELINE CONSTANT DOLLAR VALUE.—For purposes of para-
graph (2), the baseline constant dollar value for a dollar threshold— 
(A) in effect on October 1, 2000, that was first specified in a 
law that took effect on or before October 1, 2000, is the October 
1, 2000, constant dollar value of that dollar threshold; and 
(B) specified in a law that takes effect after October 1, 2000, 
is the constant dollar value of that threshold as of the effective 
date of that dollar threshold pursuant to that law. 
(2) ADJUSTMENT.—On October 1 of each year evenly divisible by 5, 
the Council shall adjust each acquisition-related dollar threshold pro-
vided by law, as described in subsection (b)(1), to the baseline constant 
dollar value of that threshold. 
(3) EXCLUSIVE MEANS OF ADJUSTMENT.—A dollar threshold adjust-
able under this section shall be adjusted only as provided in this sec-
tion. 
(d) PUBLICATION.—The Council shall publish a notice of the adjusted 
dollar thresholds under this section in the Federal Register. The thresholds 
take effect on the date of publication. 
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(e) CALCULATION.—An adjustment under this section shall be— 
(1) calculated on the basis of changes in the Consumer Price Index 
for all-urban consumers published monthly by the Secretary of Labor; 
and 
(2) rounded, in the case of a dollar threshold that on the day before 
the adjustment is— 
(A) less than $10,000, to the nearest $500; 
(B) not less than $10,000, but less than $100,000, to the near-
est $5,000; 
(C) not less than $100,000, but less than $1,000,000, to the 
nearest $50,000; and 
(D) $1,000,000 or more, to the nearest $500,000. 
(f) PETITION FOR INCLUSION OF OMITTED THRESHOLD.— 
(1) PETITION SUBMITTED TO ADMINISTRATOR.—A person may re-
quest adjustment of a dollar threshold adjustable under this section 
that is not included in a notice of adjustment published under sub-
section (d) by submitting a petition for adjustment to the Adminis-
trator. 
(2) ACTIONS OF ADMINISTRATOR.—On receipt of a petition for ad-
justment of a dollar threshold under paragraph (1), the Adminis-
trator— 
(A) shall determine, in writing, whether the dollar threshold is 
required to be adjusted under this section; and 
(B) on determining that it should be adjusted, shall publish in 
the Federal Register a revised notice of the adjustment dollar 
thresholds under this section that includes the adjustment of the 
dollar threshold covered by the petition. 
(3) EFFECTIVE DATE OF ADJUSTMENT BY PETITION.—The adjust-
ment of a dollar threshold pursuant to a petition under this subsection 
takes effect on the date the revised notice adding the adjustment under 
paragraph (2)(B) is published. 
CHAPTER 21—RESTRICTIONS ON OBTAINING AND 
DISCLOSING CERTAIN INFORMATION 
Sec. 
2101.
Definitions. 
2102.
Prohibitions on disclosing and obtaining procurement information. 
2103.
Actions required of procurement officers when contacted regarding non-Federal em-
ployment. 
2104.
Prohibition on former official’s acceptance of compensation from contractor. 
2105.
Penalties and administrative actions. 
2106.
Reporting information believed to constitute evidence of offense. 
2107.
Savings provisions. 
§ 2101. Definitions 
In this chapter: 
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(1) CONTRACTING OFFICER.—The term ‘‘contracting officer’’ means 
an individual who, by appointment in accordance with applicable regu-
lations, has the authority to enter into a Federal agency procurement 
contract on behalf of the Government and to make determinations and 
findings with respect to the contract. 
(2) CONTRACTOR BID OR PROPOSAL INFORMATION.—The term ‘‘con-
tractor bid or proposal information’’ means any of the following infor-
mation submitted to a Federal agency as part of, or in connection with, 
a bid or proposal to enter into a Federal agency procurement contract, 
if that information previously has not been made available to the public 
or disclosed publicly: 
(A) Cost or pricing data (as defined in section 2306a(h) of title 
10 with respect to procurements subject to that section and sec-
tion 3501 of this title with respect to procurements subject to that 
section). 
(B) Indirect costs and direct labor rates. 
(C) Proprietary information about manufacturing processes, op-
erations, or techniques marked by the contractor in accordance 
with applicable law or regulation. 
(D) Information marked by the contractor as ‘‘contractor bid or 
proposal information’’, in accordance with applicable law or regu-
lation. 
(3) FEDERAL AGENCY.—The term ‘‘Federal agency’’ has the mean-
ing given that term in section 102 of title 40. 
(4) FEDERAL AGENCY PROCUREMENT.—The term ‘‘Federal agency 
procurement’’ means the acquisition (by using competitive procedures 
and awarding a contract) of goods or services (including construction) 
from non-Federal sources by a Federal agency using appropriated 
amounts. 
(5) OFFICIAL.—The term ‘‘official’’ means— 
(A) an officer, as defined in section 2104 of title 5; 
(B) an employee, as defined in section 2105 of title 5; and 
(C) a member of the uniformed services, as defined in section 
2101(3) of title 5. 
(6) PROTEST.—The term ‘‘protest’’ means a written objection by an 
interested party to the award or proposed award of a Federal agency 
procurement contract, pursuant to subchapter V of chapter 35 of title 
31. 
(7) SOURCE SELECTION INFORMATION.—The term ‘‘source selection 
information’’ means any of the following information prepared for use 
by a Federal agency to evaluate a bid or proposal to enter into a Fed-
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eral agency procurement contract, if that information previously has 
not been made available to the public or disclosed publicly: 
(A) Bid prices submitted in response to a Federal agency solici-
tation for sealed bids, or lists of those bid prices before public bid 
opening. 
(B) Proposed costs or prices submitted in response to a Federal 
agency solicitation, or lists of those proposed costs or prices. 
(C) Source selection plans. 
(D) Technical evaluation plans. 
(E) Technical evaluations of proposals. 
(F) Cost or price evaluations of proposals. 
(G) Competitive range determinations that identify proposals 
that have a reasonable chance of being selected for award of a 
contract. 
(H) Rankings of bids, proposals, or competitors. 
(I) Reports and evaluations of source selection panels, boards, 
or advisory councils. 
(J) Other information marked as ‘‘source selection information’’ 
based on a case-by-case determination by the head of the agency, 
the head’s designee, or the contracting officer that its disclosure 
would jeopardize the integrity or successful completion of the Fed-
eral agency procurement to which the information relates. 
§ 2102. Prohibitions on disclosing and obtaining procure-
ment information 
(a) PROHIBITION ON DISCLOSING PROCUREMENT INFORMATION.— 
(1) IN GENERAL.—Except as provided by law, a person described in 
paragraph (3) shall not knowingly disclose contractor bid or proposal 
information or source selection information before the award of a Fed-
eral agency procurement contract to which the information relates. 
(2) EMPLOYEE OF PRIVATE SECTOR ORGANIZATION.—In addition to 
the restriction in paragraph (1), an employee of a private sector organi-
zation assigned to an agency under chapter 37 of title 5 shall not 
knowingly disclose contractor bid or proposal information or source se-
lection information during the 3-year period after the employee’s as-
signment ends, except as provided by law. 
(3) APPLICATION.—Paragraph (1) applies to a person that— 
(A)(i) is a present or former official of the Federal Government; 
or 
(ii) is acting or has acted for or on behalf of, or who is advising 
or has advised the Federal Government with respect to, a Federal 
agency procurement; and 
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(B) by virtue of that office, employment, or relationship has or 
had access to contractor bid or proposal information or source se-
lection information. 
(b) PROHIBITION ON OBTAINING PROCUREMENT INFORMATION.—Except 
as provided by law, a person shall not knowingly obtain contractor bid or 
proposal information or source selection information before the award of a 
Federal agency procurement contract to which the information relates. 
§ 2103. Actions required of procurement officers when con-
tacted regarding non-Federal employment 
(a) ACTIONS REQUIRED.—An agency official participating personally and 
substantially in a Federal agency procurement for a contract in excess of 
the simplified acquisition threshold who contacts or is contacted by a person 
that is a bidder or offeror in that Federal agency procurement regarding 
possible non-Federal employment for that official shall— 
(1) promptly report the contact in writing to the official’s supervisor 
and to the designated agency ethics official (or designee) of the agency 
in which the official is employed; and 
(2)(A) reject the possibility of non-Federal employment; or 
(B) disqualify himself or herself from further personal and substan-
tial participation in that Federal agency procurement until the agency 
authorizes the official to resume participation in the procurement, in 
accordance with the requirements of section 208 of title 18 and appli-
cable agency regulations on the grounds that— 
(i) the person is no longer a bidder or offeror in that Federal 
agency procurement; or 
(ii) all discussions with the bidder or offeror regarding possible 
non-Federal employment have terminated without an agreement or 
arrangement for employment. 
(b) RETENTION OF REPORTS.—The agency shall retain each report re-
quired by this section for not less than 2 years following the submission of 
the report. The reports shall be made available to the public on request, ex-
cept that any part of a report that is exempt from the disclosure require-
ments of section 552(b)(1) of title 5 may be withheld from disclosure to the 
public. 
(c) PERSONS SUBJECT TO PENALTIES.—The following are subject to the 
penalties and administrative actions set forth in section 2105 of this title: 
(1) An official who knowingly fails to comply with the requirements 
of this section. 
(2) A bidder or offeror that engages in employment discussions with 
an official who is subject to the restrictions of this section, knowing 
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that the official has not complied with paragraph (1) or (2) of sub-
section (a). 
§ 2104. Prohibition on former official’s acceptance of com-
pensation from contractor 
(a) PROHIBITION.—A former official of a Federal agency may not accept 
compensation from a contractor as an employee, officer, director, or consult-
ant of the contractor within one year after the official— 
(1) served, when the contractor was selected or awarded a contract, 
as the procuring contracting officer, the source selection authority, a 
member of the source selection evaluation board, or the chief of a fi-
nancial or technical evaluation team in a procurement in which that 
contractor was selected for award of a contract in excess of 
$10,000,000; 
(2) served as the program manager, deputy program manager, or ad-
ministrative contracting officer for a contract in excess of $10,000,000 
awarded to that contractor; or 
(3) personally made for the Federal agency a decision to— 
(A) award a contract, subcontract, modification of a contract or 
subcontract, or a task order or delivery order in excess of 
$10,000,000 to that contractor; 
(B) establish overhead or other rates applicable to one or more 
contracts for that contractor that are valued in excess of 
$10,000,000; 
(C) approve issuance of one or more contract payments in ex-
cess of $10,000,000 to that contractor; or 
(D) pay or settle a claim in excess of $10,000,000 with that 
contractor. 
(b) WHEN COMPENSATION MAY BE ACCEPTED.—Subsection (a) does not 
prohibit a former official of a Federal agency from accepting compensation 
from a division or affiliate of a contractor that does not produce the same 
or similar products or services as the entity of the contractor that is respon-
sible for the contract referred to in paragraph (1), (2), or (3) of subsection 
(a). 
(c) IMPLEMENTING REGULATIONS.—Regulations implementing this sec-
tion shall include procedures for an official or former official of a Federal 
agency to request advice from the appropriate designated agency ethics offi-
cial regarding whether the official or former official is or would be precluded 
by this section from accepting compensation from a particular contractor. 
(d) PERSONS SUBJECT TO PENALTIES.—The following are subject to the 
penalties and administrative actions set forth in section 2105 of this title: 
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(1) A former official who knowingly accepts compensation in viola-
tion of this section. 
(2) A contractor that provides compensation to a former official 
knowing that the official accepts the compensation in violation of this 
section. 
§ 2105. Penalties and administrative actions 
(a) CRIMINAL PENALTIES.—A person that violates section 2102 of this 
title to exchange information covered by section 2102 of this title for any-
thing of value or to obtain or give a person a competitive advantage in the 
award of a Federal agency procurement contract shall be fined under title 
18, imprisoned for not more than 5 years, or both. 
(b) CIVIL PENALTIES.—The Attorney General may bring a civil action in 
an appropriate district court of the United States against a person that en-
gages in conduct that violates section 2102, 2103, or 2104 of this title. On 
proof of that conduct by a preponderance of the evidence— 
(1) an individual is liable to the Federal Government for a civil pen-
alty of not more than $50,000 for each violation plus twice the amount 
of compensation that the individual received or offered for the prohib-
ited conduct; and 
(2) an organization is liable to the Federal Government for a civil 
penalty of not more than $500,000 for each violation plus twice the 
amount of compensation that the organization received or offered for 
the prohibited conduct. 
(c) ADMINISTRATIVE ACTIONS.— 
(1) TYPES OF ACTION THAT FEDERAL AGENCY MAY TAKE.—A Fed-
eral agency that receives information that a contractor or a person has 
violated section 2102, 2103, or 2104 of this title shall consider taking 
one or more of the following actions, as appropriate: 
(A) Canceling the Federal agency procurement, if a contract has 
not yet been awarded. 
(B) Rescinding a contract with respect to which— 
(i) the contractor or someone acting for the contractor has 
been convicted for an offense punishable under subsection (a); 
or 
(ii) the head of the agency that awarded the contract has 
determined, based on a preponderance of the evidence, that 
the contractor or a person acting for the contractor has en-
gaged in conduct constituting the offense. 
(C) Initiating a suspension or debarment proceeding for the pro-
tection of the Federal Government in accordance with procedures 
in the Federal Acquisition Regulation. 
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(D) Initiating an adverse personnel action, pursuant to the pro-
cedures in chapter 75 of title 5 or other applicable law or regula-
tion. 
(2) AMOUNT GOVERNMENT ENTITLED TO RECOVER.—When a Fed-
eral agency rescinds a contract pursuant to paragraph (1)(B), the Fed-
eral Government is entitled to recover, in addition to any penalty pre-
scribed by law, the amount expended under the contract. 
(3) PRESENT RESPONSIBILITY AFFECTED BY CONDUCT.—For pur-
poses of a suspension or debarment proceeding initiated pursuant to 
paragraph (1)(C), engaging in conduct constituting an offense under 
section 2102, 2103, or 2104 of this title affects the present responsi-
bility of a Federal Government contractor or subcontractor. 
§ 2106. Reporting information believed to constitute evi-
dence of offense 
A person may not file a protest against the award or proposed award of 
a Federal agency procurement contract alleging a violation of section 2102, 
2103, or 2104 of this title, and the Comptroller General may not consider 
that allegation in deciding a protest, unless the person, no later than 14 
days after the person first discovered the possible violation, reported to the 
Federal agency responsible for the procurement the information that the 
person believed constitutes evidence of the offense. 
§ 2107. Savings provisions 
This chapter does not— 
(1) restrict the disclosure of information to, or its receipt by, a per-
son or class of persons authorized, in accordance with applicable agency 
regulations or procedures, to receive that information; 
(2) restrict a contractor from disclosing its own bid or proposal in-
formation or the recipient from receiving that information; 
(3) restrict the disclosure or receipt of information relating to a Fed-
eral agency procurement after it has been canceled by the Federal 
agency before contract award unless the Federal agency plans to re-
sume the procurement; 
(4) prohibit individual meetings between a Federal agency official 
and an offeror or potential offeror for, or a recipient of, a contract or 
subcontract under a Federal agency procurement, provided that unau-
thorized disclosure or receipt of contractor bid or proposal information 
or source selection information does not occur; 
(5) authorize the withholding of information from, nor restrict its re-
ceipt by, Congress, a committee or subcommittee of Congress, the 
Comptroller General, a Federal agency, or an inspector general of a 
Federal agency; 
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(6) authorize the withholding of information from, nor restrict its re-
ceipt by, the Comptroller General in the course of a protest against the 
award or proposed award of a Federal agency procurement contract; 
or 
(7) limit the applicability of a requirement, sanction, contract pen-
alty, or remedy established under another law or regulation. 
CHAPTER 23—MISCELLANEOUS 
Sec. 
2301.
Use of electronic commerce in Federal procurement. 
2302.
Rights in technical data. 
2303.
Conflict of interest standards for consultants. 
2304.
Authority of Director of Office of Management and Budget not affected. 
2305.
Openness of meetings. 
2306.
Comptroller General’s access to information. 
2307.
Modular contracting for information technology. 
2308.
Protection of constitutional rights of contractors. 
2309.
Performance-based contracts or task orders for services to be treated as contracts for 
the procurement of commercial items. 
§ 2301. Use of electronic commerce in Federal procurement 
(a) DEFINITION.—For the purposes of this section, the term ‘‘electronic 
commerce’’ means electronic techniques for accomplishing business trans-
actions, including electronic mail or messaging, World Wide Web technology, 
electronic bulletin boards, purchase cards, electronic funds transfers, and 
electronic data interchange. 
(b) ESTABLISHMENT, MAINTENANCE, AND USE OF ELECTRONIC COM-
MERCE PROCEDURES AND PROCESSES.—The head of each executive agency, 
after consulting with the Administrator, shall establish, maintain, and use, 
to the maximum extent that is practicable and cost-effective, procedures and 
processes that employ electronic commerce in the conduct and administra-
tion of the procurement system of the agency. 
(c) APPLICABLE STANDARDS.—In conducting electronic commerce, the 
head of an executive agency shall apply nationally and internationally recog-
nized standards that broaden interoperability and ease the electronic inter-
change of information. 
(d) REQUIREMENTS OF SYSTEMS, TECHNOLOGIES, PROCEDURES, AND 
PROCESSES.—The head of each executive agency shall ensure that systems, 
technologies, procedures, and processes established pursuant to this sec-
tion— 
(1) are implemented with uniformity throughout the agency, to the 
extent practicable; 
(2) are implemented only after granting due consideration to the use 
or partial use, as appropriate, of existing electronic commerce and elec-
tronic data interchange systems and infrastructures such as the Fed-
eral acquisition computer network architecture known as FACNET; 
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(3) facilitate access to Federal Government procurement opportuni-
ties, including opportunities for small business concerns, socially and 
economically disadvantaged small business concerns, and business con-
cerns owned predominantly by women; and 
(4) ensure that any notice of agency requirements or agency solicita-
tion for contract opportunities is provided in a form that allows conven-
ient and universal user access through a single, Government-wide point 
of entry. 
(e) IMPLEMENTATION.—In carrying out the requirements of this section, 
the Administrator shall— 
(1) issue policies to promote, to the maximum extent practicable, 
uniform implementation of this section by executive agencies, with due 
regard for differences in program requirements among agencies that 
may require departures from uniform procedures and processes in ap-
propriate cases, when warranted because of the agency mission; 
(2) ensure that the head of each executive agency complies with the 
requirements of subsection (d); and 
(3) consult with the heads of appropriate Federal agencies with ap-
plicable technical and functional expertise, including the Office of In-
formation and Regulatory Affairs, the National Institute of Standards 
and Technology, the General Services Administration, and the Depart-
ment of Defense. 
§ 2302. Rights in technical data 
(a) WHERE DEFINED.—The legitimate proprietary interest of the Federal 
Government and of a contractor in technical or other data shall be defined 
in regulations prescribed as part of the Federal Acquisition Regulation. 
(b) GENERAL EXTENT OF REGULATIONS.— 
(1) OTHER RIGHTS NOT IMPAIRED.—Regulations prescribed under 
subsection (a) may not impair a right of the Federal Government or 
of a contractor with respect to a patent or copyright or another right 
in technical data otherwise established by law. 
(2) LIMITATION ON REQUIRING DATA BE PROVIDED TO THE GOV-
ERNMENT.—With respect to executive agencies subject to division C, 
regulations prescribed under subsection (a) shall provide that the Fed-
eral Government may not require a person that has developed a prod-
uct or process offered or to be offered for sale to the public, as a condi-
tion for the Federal Government to procure the product or process, to 
provide to the Federal Government technical data relating to the de-
sign, development, or manufacture of the product or process. This 
paragraph does not apply to data that may be necessary for the Fed-
eral Government to operate and maintain the product or use the proc-
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ess if the Federal Government obtains it as an element of performance 
under the contract. 
(c) TECHNICAL DATA DEVELOPED WITH FEDERAL FUNDS.— 
(1) USE BY GOVERNMENT AND AGENCIES.—Except as otherwise ex-
pressly provided by Federal statute, with respect to executive agencies 
subject to division C, regulations prescribed under subsection (a) shall 
provide that— 
(A) the Federal Government has unlimited rights in technical 
data developed exclusively with Federal funds if delivery of the 
data— 
(i) was required as an element of performance under a con-
tract; and 
(ii) is needed to ensure the competitive acquisition of sup-
plies or services that will be required in substantial quantities 
in the future; and 
(B) the Federal Government and each agency of the Federal 
Government has an unrestricted, royalty-free right to use, or to 
have its contractors use, for governmental purposes (excluding 
publication outside the Federal Government) technical data devel-
oped exclusively with Federal funds. 
(2) REQUIREMENTS IN ADDITION TO OTHER RIGHTS OF THE GOV-
ERNMENT.—The requirements of paragraph (1) are in addition to and 
not in lieu of any other rights the Federal Government may have pur-
suant to law. 
(d) FACTORS TO BE CONSIDERED IN PRESCRIBING REGULATIONS.—The 
following factors shall be considered in prescribing regulations under sub-
section (a): 
(1) Whether the item or process to which the technical data pertains 
was developed— 
(A) exclusively with Federal funds; 
(B) exclusively at private expense; or 
(C) in part with Federal funds and in part at private expense. 
(2) The statement of congressional policy and objectives in section 
200 of title 35, the statement of purposes in section 2(b) of the Small 
Business Innovation Development Act of 1982 (Public Law 97–219, 15 
U.S.C. 638 note), and the declaration of policy in section 2 of the 
Small Business Act (15 U.S.C. 631). 
(3) The interest of the Federal Government in increasing competi-
tion and lowering costs by developing and locating alternative sources 
of supply and manufacture. 
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(e) PROVISIONS
REQUIRED
IN
CONTRACTS.—Regulations prescribed 
under subsection (a) shall require that a contract for property or services 
entered into by an executive agency contain appropriate provisions relating 
to technical data, including provisions— 
(1) defining the respective rights of the Federal Government and the 
contractor or subcontractor (at any tier) regarding technical data to be 
delivered under the contract; 
(2) specifying technical data to be delivered under the contract and 
schedules for delivery; 
(3) establishing or referencing procedures for determining the ac-
ceptability of technical data to be delivered under the contract; 
(4) establishing separate contract line items for technical data to be 
delivered under the contract; 
(5) to the maximum practicable extent, identifying, in advance of de-
livery, technical data which is to be delivered with restrictions on the 
right of the Federal Government to use the data; 
(6) requiring the contractor to revise any technical data delivered 
under the contract to reflect engineering design changes made during 
the performance of the contract and affecting the form, fit, and func-
tion of the items specified in the contract and to deliver the revised 
technical data to an agency within a time specified in the contract; 
(7) requiring the contractor to furnish written assurance, when tech-
nical data is delivered or is made available, that the technical data is 
complete and accurate and satisfies the requirements of the contract 
concerning technical data; 
(8) establishing remedies to be available to the Federal Government 
when technical data required to be delivered or made available under 
the contract is found to be incomplete or inadequate or to not satisfy 
the requirements of the contract concerning technical data; and 
(9) authorizing the head of the agency to withhold payments under 
the contract (or exercise another remedy the head of the agency con-
siders appropriate) during any period if the contractor does not meet 
the requirements of the contract pertaining to the delivery of technical 
data. 
§ 2303. Conflict of interest standards for consultants 
(a) CONTENT
OF REGULATIONS.—The Administrator shall prescribe 
under this division Government-wide regulations that set forth— 
(1) conflict of interest standards for persons who provide consulting 
services described in subsection (b); and 
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(2) procedures, including registration, certification, and enforcement 
requirements as may be appropriate, to promote compliance with the 
standards. 
(b) SERVICES SUBJECT TO REGULATIONS.—Regulations required by sub-
section (a) apply to— 
(1) advisory and assistance services provided to the Federal Govern-
ment to the extent necessary to identify and evaluate the potential for 
conflicts of interest that could be prejudicial to the interests of the 
United States; 
(2) services related to support of the preparation or submission of 
bids and proposals for Federal contracts to the extent that inclusion 
of the services in the regulations is necessary to identify and evaluate 
the potential for conflicts of interest that could be prejudicial to the 
interests of the United States; and 
(3) other services related to Federal contracts as specified in the reg-
ulations prescribed under subsection (a) to the extent necessary to 
identify and evaluate the potential for conflicts of interest that could 
be prejudicial to the interests of the United States. 
(c) INTELLIGENCE ACTIVITIES EXEMPTION.— 
(1) ACTIVITIES THAT MAY BE EXEMPT.—Intelligence activities as de-
fined in section 3.4(e) of Executive Order No. 12333 or a comparable 
definitional section in any successor order may be exempt from the reg-
ulations required by subsection (a). 
(2) REPORT.—The Director of National Intelligence shall report to 
the Intelligence and Appropriations Committees of Congress each Jan-
uary 1, delineating the activities and organizations that have been ex-
empted under paragraph (1). 
(d) PRESIDENTIAL DETERMINATION.—Before the regulations required by 
subsection (a) are prescribed, the President shall determine if prescribing 
the regulations will have a significantly adverse effect on the accomplish-
ment of the mission of the Defense Department or another Federal agency. 
If the President determines that the regulations will have such an adverse 
effect, the President shall so report to the appropriate committees of the 
Senate and the House of Representatives, stating in full the reasons for the 
determination. If such a report is submitted, the requirement for the regula-
tions shall be null and void. 
§ 2304. Authority of Director of Office of Management and 
Budget not affected 
This division does not limit the authorities and responsibilities of the Di-
rector of the Office of Management and Budget in effect on December 1, 
1983. 
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§ 2305. Openness of meetings 
The Administrator by regulation shall require that— 
(1) formal meetings of the Office of Federal Procurement Policy, as 
designated by the Administrator, for developing procurement policies 
and regulations be open to the public; and 
(2) public notice of each meeting be given not less than 10 days 
prior to the meeting. 
§ 2306. Comptroller General’s access to information 
The Administrator and personnel in the Office of Federal Procurement 
Policy shall furnish information the Comptroller General may require to dis-
charge the responsibilities of the Comptroller General. For this purpose, the 
Comptroller General or his representatives shall have access to all books, 
documents, papers, and records of the Office of Federal Procurement Pol-
icy. 
§ 2307. Modular contracting for information technology 
(a) USE.—To the maximum extent practicable, the head of an executive 
agency should use modular contracting for an acquisition of a major system 
of information technology. 
(b) MODULAR CONTRACTING DESCRIBED.—Under modular contracting, 
an executive agency’s need for a system is satisfied in successive acquisi-
tions of interoperable increments. Each increment complies with common or 
commercially accepted standards applicable to information technology so 
that the increments are compatible with other increments of information 
technology comprising the system. 
(c) PROVISIONS IN FEDERAL ACQUISITION REGULATION.—The Federal 
Acquisition Regulation shall provide that— 
(1) under the modular contracting process, an acquisition of a major 
system of information technology may be divided into several smaller 
acquisition increments that— 
(A) are easier to manage individually than would be one com-
prehensive acquisition; 
(B) address complex information technology objectives incre-
mentally in order to enhance the likelihood of achieving workable 
solutions for attaining those objectives; 
(C) provide for delivery, implementation, and testing of work-
able systems or solutions in discrete increments, each of which 
comprises a system or solution that is not dependent on a subse-
quent increment in order to perform its principal functions; and 
(D) provide an opportunity for subsequent increments of the ac-
quisition to take advantage of any evolution in technology or needs 
that occurs during conduct of the earlier increments; 
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(2) to the maximum extent practicable, a contract for an increment 
of an information technology acquisition should be awarded within 180 
days after the solicitation is issued and, if the contract for that incre-
ment cannot be awarded within that period, the increment should be 
considered for cancellation; and 
(3) the information technology provided for in a contract for acquisi-
tion of information technology should be delivered within 18 months 
after the solicitation resulting in award of the contract was issued. 
§ 2308. Protection of constitutional rights of contractors 
(a) PROHIBITION ON REQUIRING WAIVER OF RIGHTS.—A contractor may 
not be required, as a condition for entering into a contract with the Federal 
Government, to waive a right under the Constitution for a purpose relating 
to the Chemical Weapons Convention Implementation Act of 1998 (22 
U.S.C. 6701 et seq.) or the Chemical Weapons Convention (as defined in 
section 3 of that Act (22 U.S.C. 6701)). 
(b) PERMISSIBLE CONTRACT CLAUSES.—Subsection (a) does not prohibit 
an executive agency from including in a contract a clause that requires the 
contractor to permit inspections to ensure that the contractor is performing 
the contract in accordance with the provisions of the contract. 
§ 2309. Performance-based contracts or task orders for serv-
ices to be treated as contracts for the procurement 
of commercial items 
(a) CRITERIA.—A performance-based contract for the procurement of 
services entered into by an executive agency or a performance-based task 
order for services issued by an executive agency may be treated as a con-
tract for the procurement of commercial items if— 
(1) the value of the contract or task order is estimated not to exceed 
$25,000,000; 
(2) the contract or task order sets forth specifically each task to be 
performed and, for each task— 
(A) defines the task in measurable, mission-related terms; 
(B) identifies the specific end products or output to be achieved; 
and 
(C) contains firm, fixed prices for specific tasks to be performed 
or outcomes to be achieved; and 
(3) the source of the services provides similar services to the general 
public under terms and conditions similar to those offered to the Fed-
eral Government. 
(b) REGULATIONS.—Regulations implementing this section shall require 
agencies to collect and maintain reliable data sufficient to identify the con-
tracts or task orders treated as contracts for commercial items using the 
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authority of this section. The data may be collected using the Federal Pro-
curement Data System or other reporting mechanism. 
(c) REPORT.—Not later than 2 years after November 24, 2003, the Di-
rector of the Office of Management and Budget shall prepare and submit 
to the Committees on Homeland Security and Governmental Affairs and on 
Armed Services of the Senate and the Committees on Oversight and Gov-
ernment Reform and on Armed Services of the House of Representatives 
a report on the contracts or task orders treated as contracts for commercial 
items using the authority of this section. The report shall include data on 
the use of the authority, both government-wide and for each department 
and agency. 
(d) EXPIRATION.—The authority under this section expires 10 years after 
November 24, 2003. 
DIVISION C—PROCUREMENT 
CHAPTER 31—GENERAL 
Sec. 
3101.
Applicability. 
3102.
Delegation and assignment of powers, functions, and responsibilities. 
3103.
Acquisition programs. 
3104.
Small business concerns. 
3105.
New contracts and grants and merit-based selection procedures. 
3106.
Erection, repair, or furnishing of public buildings and improvements not authorized, 
and certain contracts not permitted, by this division. 
§ 3101. Applicability 
(a) IN GENERAL.—An executive agency shall make purchases and con-
tracts for property and services in accordance with this division and imple-
menting regulations of the Administrator of General Services. 
(b) SIMPLIFIED ACQUISITION THRESHOLD AND PROCEDURES.— 
(1) SIMPLIFIED ACQUISITION THRESHOLD.— 
(A) DEFINITION.—For purposes of an acquisition by an execu-
tive agency, the simplified acquisition threshold is as specified in 
section 134 of this title. 
(B) INAPPLICABLE LAWS.—A law properly listed in the Federal 
Acquisition Regulation pursuant to section 1905 of this title does 
not apply to or with respect to a contract or subcontract that is 
not greater than the simplified acquisition threshold. 
(2) SIMPLIFIED ACQUISITION PROCEDURES.—Simplified acquisition 
procedures contained in the Federal Acquisition Regulation pursuant to 
section 1901 of this title apply in executive agencies as provided in sec-
tion 1901. 
(c) EXCEPTIONS.— 
(1) IN GENERAL.—This division does not apply— 
(A) to the Department of Defense, the Coast Guard, and the 
National Aeronautics and Space Administration; or 
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(B) except as provided in paragraph (2), when this division is 
made inapplicable pursuant to law. 
(2) APPLICABILITY OF CERTAIN LAWS RELATED TO ADVERTISING, 
OPENING OF BIDS, AND LENGTH OF CONTRACT.—Sections 6101, 6103, 
and 6304 of this title do not apply to the procurement of property or 
services made by an executive agency pursuant to this division. How-
ever, when this division is made inapplicable by any law, sections 6101 
and 6103 of this title apply in the absence of authority conferred by 
statute to procure without advertising or without regard to section 
6101 of this title. A law that authorizes an executive agency (other 
than an executive agency exempted from this division by this sub-
section) to procure property or services without advertising or without 
regard to section 6101 of this title is deemed to authorize the procure-
ment pursuant to the provisions of this division relating to procedures 
other than sealed-bid procedures. 
§ 3102. Delegation and assignment of powers, functions, and 
responsibilities 
(a) IN GENERAL.—Except to the extent expressly prohibited by another 
law, the head of an executive agency may delegate to another officer or offi-
cial of that agency any power under this division. 
(b) PROCUREMENTS FOR OR WITH ANOTHER AGENCY.—Subject to sub-
section (a), to facilitate the procurement of property and services covered 
by this division by an executive agency for another executive agency, and 
to facilitate joint procurement by executive agencies— 
(1) the head of an executive agency may delegate functions and as-
sign responsibilities relating to procurement to any officer or employee 
within the agency; 
(2) the heads of 2 or more executive agencies, consistent with section 
1535 of title 31 and regulations prescribed under section 1074 of the 
Federal Acquisition Streamlining Act of 1994 (Public Law 103–355, 
31 U.S.C. 1535 note), may by agreement delegate procurement func-
tions and assign procurement responsibilities from one executive agency 
to another of those executive agencies or to an officer or civilian em-
ployee of another of those executive agencies; and 
(3) the heads of 2 or more executive agencies may establish joint or 
combined offices to exercise procurement functions and responsibilities. 
§ 3103. Acquisition programs 
(a) CONGRESSIONAL POLICY.—It is the policy of Congress that the head 
of each executive agency should achieve, on average, 90 percent of the cost, 
performance, and schedule goals established for major acquisition programs 
of the agency. 
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(b) ESTABLISHMENT OF GOALS.— 
(1) BY HEAD OF EXECUTIVE AGENCY.—The head of each executive 
agency shall approve or define the cost, performance, and schedule 
goals for major acquisition programs of the agency. 
(2) BY CHIEF FINANCIAL OFFICER.—The chief financial officer of an 
executive agency shall evaluate the cost goals proposed for each major 
acquisition program of the agency. 
(c) IDENTIFICATION OF NONCOMPLIANT PROGRAMS.—When it is nec-
essary to implement the policy set out in subsection (a), the head of an ex-
ecutive agency shall— 
(1) determine whether there is a continuing need for programs that 
are significantly behind schedule, over budget, or not in compliance 
with performance or capability requirements; and 
(2) identify suitable actions to be taken, including termination, with 
respect to those programs. 
§ 3104. Small business concerns 
It is the policy of Congress that a fair proportion of the total purchases 
and contracts for property and services for the Federal Government shall 
be placed with small business concerns. 
§ 3105. New contracts and grants and merit-based selection 
procedures 
(a) CONGRESSIONAL POLICY.—It is the policy of Congress that— 
(1) an executive agency should not be required by legislation to 
award— 
(A) a new contract to a specific non-Federal Government entity; 
or 
(B) a new grant for research, development, test, or evaluation 
to a non-Federal Government entity; and 
(2) a program, project, or technology identified in legislation be pro-
cured or awarded through merit-based selection procedures. 
(b) NEW CONTRACT AND NEW GRANT DESCRIBED.—For purposes of 
this section— 
(1) a contract is a new contract unless the work provided for in the 
contract is a continuation of the work performed by the specified entity 
under a prior contract; and 
(2) a grant is a new grant unless the work provided for in the grant 
is a continuation of the work performed by the specified entity under 
a prior grant. 
(c) REQUIREMENTS FOR AWARDING NEW CONTRACT OR NEW GRANT.— 
A provision of law may not be construed as requiring a new contract or a 
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new grant to be awarded to a specified non-Federal Government entity un-
less the provision of law specifically— 
(1) refers to this section; 
(2) identifies the particular non-Federal Government entity involved; 
and 
(3) states that the award to that entity is required by the provision 
of law in contravention of the policy set forth in subsection (a). 
(d) EXCEPTION.—This section does not apply to a contract or grant that 
calls on the National Academy of Sciences to investigate, examine, or experi-
ment on a subject of science or art of significance to an executive agency 
and to report on those matters to Congress or an agency of the Federal 
Government. 
§ 3106. Erection, repair, or furnishing of public buildings 
and improvements not authorized, and certain 
contracts not permitted, by this division 
This division does not— 
(1) authorize the erection, repair, or furnishing of a public building 
or public improvement; or 
(2) permit a contract for the construction or repair of a building, 
road, sidewalk, sewer, main, or similar item using procedures other 
than sealed-bid procedures under section 3301(b)(1)(A) of this title if 
the conditions set forth in section 3301(b)(1)(A) of this title apply or 
the contract is to be performed outside the United States. 
CHAPTER 33—PLANNING AND SOLICITATION 
Sec. 
3301.
Full and open competition. 
3302.
Exclusion of particular source or restriction of solicitation to small business concerns. 
3303.
Use of noncompetitive procedures. 
3304.
Simplified procedures for small purchases. 
3305.
Planning and solicitation requirements. 
3306.
Preference for commercial items. 
3307.
Planning for future competition in contracts for major systems. 
3308.
Design-build selection procedures. 
3309.
Quantities to order. 
3310.
Qualification requirement. 
§ 3301. Full and open competition 
(a) IN GENERAL.—Except as provided in sections 3302, 3303(a), and 
3304 of this title and except in the case of procurement procedures other-
wise expressly authorized by statute, an executive agency in conducting a 
procurement for property or services shall— 
(1) obtain full and open competition through the use of competitive 
procedures in accordance with the requirements of this division and the 
Federal Acquisition Regulation; and 
(2) use the competitive procedure or combination of competitive pro-
cedures that is best suited under the circumstances of the procurement. 
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(b) APPROPRIATE COMPETITIVE PROCEDURES.— 
(1) USE OF SEALED BIDS.—In determining the competitive proce-
dures appropriate under the circumstance, an executive agency shall— 
(A) solicit sealed bids if— 
(i) time permits the solicitation, submission, and evaluation 
of sealed bids; 
(ii) the award will be made on the basis of price and other 
price-related factors; 
(iii) it is not necessary to conduct discussions with the re-
sponding sources about their bids; and 
(iv) there is a reasonable expectation of receiving more 
than one sealed bid; or 
(B) request competitive proposals if sealed bids are not appro-
priate under subparagraph (A). 
(2) SEALED BID NOT REQUIRED.—Paragraph (1)(A) does not re-
quire the use of sealed-bid procedures in cases in which section 204(e) 
of title 23 applies. 
(c) EFFICIENT FULFILLMENT OF GOVERNMENT REQUIREMENTS.—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 Federal Government’s requirements. 
§ 3302. Exclusion of particular source or restriction of solici-
tation to small business concerns 
(a) EXCLUSION OF PARTICULAR SOURCE.— 
(1) CRITERIA FOR EXCLUSION.—An executive agency may provide 
for the procurement of property or services covered by section 3301 of 
this title using competitive procedures but excluding a particular source 
to establish or maintain an alternative source of supply for that prop-
erty or service if the agency head determines that to do so would— 
(A) increase or maintain competition and likely result in re-
duced overall cost for the procurement, or for an anticipated pro-
curement, of the property or services; 
(B) be in the interest of national defense in having a facility 
(or a producer, manufacturer, or other supplier) available for fur-
nishing the property or service in case of a national emergency or 
industrial mobilization; 
(C) be in the interest of national defense in establishing or 
maintaining an essential engineering, research, or development ca-
pability to be provided by an educational or other nonprofit insti-
tution or a Federally funded research and development center; 
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(D) ensure the continuous availability of a reliable source of 
supply of the property or service; 
(E) satisfy projected needs for the property or service deter-
mined on the basis of a history of high demand for the property 
or service; or 
(F) satisfy a critical need for medical, safety, or emergency sup-
plies. 
(2) DETERMINATION
FOR
CLASS
DISALLOWED.—A determination 
under paragraph (1) may not be made for a class of purchases or con-
tracts. 
(b) EXCLUSION OF OTHER THAN SMALL BUSINESS CONCERNS.—An ex-
ecutive agency may provide for the procurement of property or services cov-
ered by section 3301 of this title using competitive procedures, but exclud-
ing other than small business concerns in furtherance of sections 9 and 15 
of the Small Business Act (15 U.S.C. 638, 644). 
(c) NONAPPLICATION
OF JUSTIFICATION
AND APPROVAL REQUIRE-
MENTS.—A contract awarded pursuant to the competitive procedures re-
ferred to in subsections (a) and (b) is not subject to the justification and 
approval required by section 3303(d)(1) of this title. 
§ 3303. Use of noncompetitive procedures 
(a) WHEN NONCOMPETITIVE PROCEDURES MAY BE USED.—An execu-
tive agency may use procedures other than competitive procedures only 
when— 
(1) the property or services needed by the executive agency are avail-
able from only one responsible source and no other type of property 
or services will satisfy the needs of the executive agency; 
(2) the executive agency’s need for the property or services is of such 
an unusual and compelling urgency that the Federal Government would 
be seriously injured unless the executive agency is permitted to limit 
the number of sources from which it solicits bids or proposals; 
(3) it is necessary to award the contract to a particular source— 
(A) to maintain a facility, producer, manufacturer, or other sup-
plier available for furnishing property or services in case of a na-
tional emergency or to achieve industrial mobilization; 
(B) to establish or maintain an essential engineering, research, 
or development capability to be provided by an educational or 
other nonprofit institution or a Federally funded research and de-
velopment center; 
(C) to procure the services of an expert for use, in any litigation 
or dispute (including any reasonably foreseeable litigation or dis-
pute) involving the Federal Government, in any trial, hearing, or 
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proceeding before a court, administrative tribunal, or agency, 
whether or not the expert is expected to testify; or 
(D) to procure the services of an expert or neutral for use in 
any part of an alternative dispute resolution or negotiated rule-
making process, whether or not the expert is expected to testify; 
(4) the terms of an international agreement or treaty between the 
Federal Government and a foreign government or an international or-
ganization, or the written directions of a foreign government reimburs-
ing the executive agency for the cost of the procurement of the prop-
erty or services for that government, have the effect of requiring the 
use of procedures other than competitive procedures; 
(5) subject to section 3105 of this title, a statute expressly author-
izes or requires that the procurement be made through another execu-
tive agency or from a specified source, or the agency’s need is for a 
brand-name commercial item for authorized resale; 
(6) the disclosure of the executive agency’s needs would compromise 
the national security unless the agency is permitted to limit the number 
of sources from which it solicits bids or proposals; or 
(7) the head of the executive agency (who may not delegate the au-
thority under this paragraph)— 
(A) determines that it is necessary in the public interest to use 
procedures other than competitive procedures in the particular 
procurement concerned; and 
(B) notifies Congress in writing of that determination not less 
than 30 days before the award of the contract. 
(b) PROPERTY
OR SERVICES DEEMED AVAILABLE FROM ONLY ONE 
SOURCE.—For the purposes of subsection (a)(1), in the case of— 
(1) a contract for property or services to be awarded on the basis 
of acceptance of an unsolicited research proposal, the property or serv-
ices are deemed to be available from only one source if the source has 
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— 
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(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 
(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, 
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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.— 
(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 division in its procurement of the 
property or services. 
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(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. 
§ 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. 
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(2) REQUIREMENTS OF SPECIFICATIONS.—Each solicitation under 
this division shall include specifications that— 
(A) consistent with this division, permit full and open competi-
tion; 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 
(2)(A) in the case of sealed bids— 
(i) a statement that sealed bids will be evaluated without discus-
sions with the bidders; and 
(ii) the time and place for the opening of the sealed bids; or 
(B) in the case of competitive proposals— 
(i) either a statement that the proposals are intended to be eval-
uated with, and the award made after, discussions with the 
offerors, or a statement that the proposals are intended to be eval-
uated, and the award made, without discussions with the offerors 
(other than discussions conducted for the purpose of minor clari-
fication) unless discussions are determined to be necessary; and 
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