H. R. 1107—68 
(1) BY HEAD OF EXECUTIVE AGENCY.—The head of each execu-
tive 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 
necessary to implement the policy set out in subsection (a), the 
head of an executive agency shall— 
(1) determine whether there is a continuing need for pro-
grams 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 termi-
nation, 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 procured or awarded through merit-based selection proce-
dures. 
(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 new grant to be awarded to a specified non- 
Federal Government entity unless 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 experiment 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.
H. R. 1107—69 
§ 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 per-
formed outside the United States. 
CHAPTER 33—PLANNING AND SOLICITATION 
Sec. 
3301.
Full and open competition. 
3302.
Requirements for purchase of property and services pursuant to multiple 
award contracts. 
3303.
Exclusion of particular source or restriction of solicitation to small business 
concerns. 
3304.
Use of noncompetitive procedures. 
3305.
Simplified procedures for small purchases. 
3306.
Planning and solicitation requirements. 
3307.
Preference for commercial items. 
3308.
Planning for future competition in contracts for major systems. 
3309.
Design-build selection procedures. 
3310.
Quantities to order. 
3311.
Qualification requirement. 
§ 3301. Full and open competition 
(a) IN GENERAL.—Except as provided in sections 3303, 3304(a), 
and 3305 of this title and except in the case of procurement proce-
dures otherwise 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 competi-
tive procedures that is best suited under the circumstances 
of the procurement. 
(b) APPROPRIATE COMPETITIVE PROCEDURES.— 
(1) USE OF SEALED BIDS.—In determining the competitive 
procedures 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 responding 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 
appropriate under subparagraph (A). 
(2) SEALED BID NOT REQUIRED.—Paragraph (1)(A) does not 
require the use of sealed-bid procedures in cases in which 
section 204(e) of title 23 applies.
H. R. 1107—70 
(c) EFFICIENT FULFILLMENT OF GOVERNMENT REQUIREMENTS.— 
The Federal Acquisition Regulation shall ensure that the require-
ment 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. Requirements for purchase of property and services 
pursuant to multiple award contracts 
(a) DEFINITIONS.—In this section: 
(1) EXECUTIVE AGENCY.— The term ‘‘executive agency’’ has 
the same meaning given in section 133 of this title. 
(2) INDIVIDUAL PURCHASE.—The term ‘‘individual purchase’’ 
means a task order, delivery order, or other purchase. 
(3) MULTIPLE AWARD CONTRACT.—The term ‘‘multiple award 
contract’’ means— 
(A) a contract that is entered into by the Administrator 
of General Services under the multiple award schedule 
program referred to in section 2302(2)(C) of title 10; 
(B) a multiple award task order contract that is entered 
into under the authority of sections 2304a to 2304d of 
title 10, or chapter 41 of this title; and 
(C) any other indefinite delivery, indefinite quantity con-
tract that is entered into by the head of an executive 
agency with 2 or more sources pursuant to the same solici-
tation. 
(4) SOLE SOURCE TASK OR DELIVERY ORDER.—The term ‘‘sole 
source task or delivery order’’ means any order that does not 
follow the competitive procedures in paragraph (2) or (3) of 
subsection (c). 
(b) REGULATIONS REQUIRED.—The Federal Acquisition Regulation 
shall require enhanced competition in the purchase of property 
and services by all executive agencies pursuant to multiple award 
contracts. 
(c) CONTENT OF REGULATIONS.— 
(1) IN GENERAL.—The regulations required by subsection (b) 
shall provide that each individual purchase of property or serv-
ices in excess of the simplified acquisition threshold that is 
made under a multiple award contract shall be made on a 
competitive basis unless a contracting officer— 
(A) waives the requirement on the basis of a determina-
tion that— 
(i) one of the circumstances described in paragraphs 
(1) to (4) of section 4106(c) of this title or section 
2304c(b) of title 10 applies to the individual purchase; 
or 
(ii) a law expressly authorizes or requires that the 
purchase be made from a specified source; and 
(B) justifies the determination in writing. 
(2) COMPETITIVE BASIS PROCEDURES.—For purposes of this 
subsection, an individual purchase of property or services is 
made on a competitive basis only if it is made pursuant to 
procedures that— 
(A) require fair notice of the intent to make that purchase 
(including a description of the work to be performed and 
the basis on which the selection will be made) to be pro-
vided to all contractors offering the property or services 
under the multiple award contract; and