808
HR 1530 PP
of information technology, the Director shall transmit the
Director’s recommendations for such legislation to the Com-
mittee on Governmental Affairs and the Committee on
Small Business of the Senate and the Committee on Govern-
ment Reform and Oversight and the Committee on Small
Business of the House of Representatives.
SEC. 4305. RULE OF CONSTRUCTION.
Nothing in this title shall be construed as authorizing
the appropriation or obligation of funds for the pilot pro-
grams conducted pursuant to this title.
Subtitle B—Specific Pilot Programs
SEC. 4321. SHARE-IN-SAVINGS PILOT PROGRAM.
(a) REQUIREMENT.—The Administrator may author-
ize agencies to carry out a pilot program to test the feasibil-
ity of—
(1) contracting on a competitive basis with a
private sector source to provide the Federal Govern-
ment with an information technology solution for im-
proving mission-related or administrative processes of
the Federal Government; and
(2) paying the private sector source an amount
equal to a portion of the savings derived by the Fed-
eral Government from any improvements in mission-
related processes and administrative processes that re-
sult from implementation of the solution.
809
HR 1530 PP
(b) PROGRAM CONTRACTS.—Up to five contracts for
one project each may be entered into under the pilot pro-
gram.
(c) SELECTION OF PROJECTS.—The projects shall be
selected by the Administrator, in consultation with the Ad-
ministrator for the Office of Information and Regulatory
Affairs, from among projects recommended by the Chief In-
formation Officers Council.
SEC. 4322. SOLUTIONS-BASED CONTRACTING PILOT PRO-
GRAM.
(a) IN GENERAL.—The Administrator may authorize
agencies to carry out a pilot program to test the feasibility
of the use of solutions-based contracting for acquisition of
information technology.
(b) SOLUTIONS-BASED CONTRACTING DEFINED.—For
purposes of this section, solutions-based contracting is an
acquisition method under which the Federal Government
user of the technology to be acquired defines the acquisition
objectives, uses a streamlined contractor selection process,
and allows industry sources to provide solutions that attain
the objectives effectively. The emphasis of the method is on
obtaining from industry an optimal solution.
(c) PROCESS.—The Administrator shall require use of
the following process for acquisitions under the pilot pro-
gram:
810
HR 1530 PP
(1) ACQUISITION PLAN EMPHASIZING DESIRED
RESULT.—Preparation of an acquisition plan that
defines the functional requirements of the intended
users of the information technology to be acquired,
identifies the operational improvement results to be
achieved, and defines the performance measurements
to be applied in determining whether the information
technology acquired satisfies the defined requirements
and attains the identified results.
(2) RESULTS-ORIENTED STATEMENT OF WORK.—
Use of a statement of work that is limited to an ex-
pression of the end results or performance capabilities
desired under the acquisition plan.
(3) SMALL ACQUISITION ORGANIZATION.—Assem-
bly of small acquisition organization consisting of the
following:
(A) An acquisition management team, the
members of which are to be evaluated and re-
warded under the pilot program for contribu-
tions toward attainment of the desired results
identified in the acquisition plan.
(B) A small source selection team composed
of representatives in the specific mission or ad-
ministrative area to be supported by the infor-
811
HR 1530 PP
mation technology to be acquired, a contracting
officer, and persons with relevant expertise.
(4) USE OF SOURCE SELECTION FACTORS EM-
PHASIZING SOURCE QUALIFICATIONS.—Use of source
selection factors that are limited to determining the
qualifications of the offeror, including such factors as
personnel skills, previous experience in providing
other private or public sector organizations with solu-
tions for attaining objectives similar to the objectives
to be attained in the acquisition, past contract per-
formance, qualifications of the proposed program
manager, and the proposed management plan.
(5) OPEN COMMUNICATIONS WITH CONTRACTOR
COMMUNITY.—Open availability of the following in-
formation to potential offerors:
(A) The agency mission to be served by the
acquisition.
(B) The functional process to be performed
by use of information technology.
(C) The process improvements to be at-
tained.
(6) SIMPLE SOLICITATION.—Use of a simple so-
licitation that sets forth only the functional work de-
scription, source selection factors, the required terms
and conditions, instructions regarding submission of
812
HR 1530 PP
offers, and the estimate of the Federal Government’s
budget for the desired work.
(7) SIMPLE
PROPOSALS.—Submission of oral
proposals and acceptance of written supplemental
submissions that are limited in size and scope and
contain information on the offeror’s qualifications to
perform the desired work together with information of
past contract performance.
(8) SIMPLE EVALUATION.—Use of a simple eval-
uation process, to be completed within 45 days after
receipt of proposals, which consists of the following:
(A) Identification of the offerors that are
within the competitive range of most of the
qualified offerors.
(B) Issuance of invitations for at least three
and not more than five of the identified offerors
to make oral presentations to, and engage in dis-
cussions with, the evaluating personnel regarding
the qualifications of the offerors, including how
the qualifications of each offeror relate to the ap-
proaches proposed to be taken by the offeror in
the acquisition.
(C) Evaluation of the qualifications of the
identified offerors on the basis of submissions re-
quired under the process and any oral presen-
813
HR 1530 PP
tations made by, and any discussions with, the
offerors.
(9) SELECTION OF MOST QUALIFIED OFFEROR.—
A selection process consisting of the following:
(A) Identification of the most qualified
source, and ranking of alternative sources, pri-
marily on the basis of the oral proposals, presen-
tations, and discussions, but taking into consid-
eration supplemental written submissions.
(B) Conduct for 30 to 60 days of a program
definition phase, funded by the Federal Govern-
ment—
(i) during which the selected source, in
consultation with one or more intended
users, develops a conceptual system design
and technical approach, defines logical
phases for the project, and estimates the
total cost and the cost for each phase; and
(ii) after which a contract for perform-
ance of the work may be awarded to that
source on the basis of cost, the responsive-
ness, reasonableness, and quality of the pro-
posed performance, and a sharing of risk
and benefits between the source and the
Government.
814
HR 1530 PP
(C) Conduct of as many successive program
definition phases with the alternative sources (in
the order ranked) as is necessary in order to
award a contract in accordance with subpara-
graph (B).
(10) SYSTEM IMPLEMENTATION PHASING.—Sys-
tem implementation to be executed in phases that are
tailored to the solution, with various contract ar-
rangements being used, as appropriate, for various
phases and activities.
(11) MUTUAL AUTHORITY TO TERMINATE.—Au-
thority for the Federal Government or the contractor
to terminate the contract without penalty at the end
of any phase defined for the project.
(12) TIME MANAGEMENT DISCIPLINE.—Applica-
tion of a standard for awarding a contract within 60
to 90 days after issuance of the solicitation.
(d) PILOT PROGRAM DESIGN.—
(1) JOINT PUBLIC-PRIVATE WORKING GROUP.—
The Administrator, in consultation with the Adminis-
trator for the Office of Information and Regulatory
Affairs shall establish a joint working group of Fed-
eral Government personnel and representatives of the
information technology industry to design a plan for
conduct of the pilot program. The establishment and
816
HR 1530 PP
not be obvious, but rather shall involve a need for
some innovative development; and
(ii) the project shall incorporate all ele-
ments of system integration.
(C) An acquisition project should not be so ex-
tensive or lengthy as to result in undue delay in the
evaluation of the use of solutions-based contracting.
(e) USE OF EXPERIENCED FEDERAL PERSONNEL.—
Only Federal Government personnel who are experienced,
and have demonstrated success, in managing or otherwise
performing significant functions in complex acquisitions
shall be used for evaluating offers, selecting sources, and
carrying out the performance phases in an acquisition
under the pilot program.
(f) MONITORING BY GAO.—
(1) REQUIREMENT.—The Comptroller General of
the United States shall—
(A) monitor the conduct, and review the re-
sults, of acquisitions under the pilot program;
and
(B) submit to Congress periodic reports con-
taining the views of the Comptroller General on
the activities, results, and findings under the
pilot program.
817
HR 1530 PP
(2) EXPIRATION
OF
REQUIREMENT.—The re-
quirement under paragraph (1)(B) shall terminate
after submission of the report that contains the final
views of the Comptroller General on the last of the ac-
quisition projects completed under the pilot program.
TITLE XLIV—OTHER INFORMA-
TION 
RESOURCES 
MANAGE-
MENT REFORM
SEC. 4401. ON-LINE MULTIPLE AWARD SCHEDULE CON-
TRACTING.
(a) AUTOMATION OF MULTIPLE AWARD SCHEDULE
CONTRACTING.—(1) In order to provide for the economic
and efficient procurement of information technology, the
Administrator of General Services shall establish a program
for the development and implementation of a system to pro-
vide Governmentwide, on-line computer access to informa-
tion on information technology products and services that
are available for ordering through multiple award sched-
ules.
(2) The system required by paragraph (1) shall, at a
minimum—
(A) provide basic information on prices, features,
and performance of all products and services avail-
able for ordering through the multiple award sched-
ules;
818
HR 1530 PP
(B) provide for updating that information to re-
flect changes in prices, features, and performance as
soon as information on the changes becomes available;
(C) enables users to make on-line computer com-
parisons of the prices, features, and performance of
similar products and services offered by various ven-
dors;
(D) enable users to place, and vendors to receive,
on-line computer orders for products and services
available for ordering through the multiple award
schedules (up to the maximum order limitation of the
applicable schedule contract);
(E) enable ordering agencies to make payments
to contractors by bank card, electronic funds transfer,
or other automated methods in cases in which it is
practicable and in the interest of the Federal Govern-
ment to do so; and
(F) archive data relating to each order placed
against multiple award schedule contracts using such
system, including, at a minimum, data on—
(i) the agency or office placing the order;
(ii) the vendor receiving the order;
(iii) the products or services ordered; and
(iv) the total price of the order.
819
HR 1530 PP
(3)(A) The system required by paragraph (1) shall be
implemented not later than January 1, 1998.
(B) The Administrator shall certify to Congress that
the system required by paragraph (1) has been implemented
at such time as a system meeting the requirements of para-
graph (2) is in place and accessible by at least 90 percent
of the potential users in the departments and agencies of
the Federal Government.
(4) Orders placed against multiple award schedule
contracts through the system required by paragraph (1)
may be considered for purposes of the determinations re-
garding implementation of the capability described under
subsection (b) of section 30A of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 426a) and implementation
of such capability under subsection (d) of such section.
(b) STREAMLINED PROCEDURES; PILOT PROGRAM.—
(1)(A) In order to provide for compliance with provisions
of law requiring the use of competitive procedures in Fed-
eral Government procurement, the procedures established by
the Administrator of General Services for the program re-
ferred to in subsection (a) shall include requirements for—
(i) participation in multiple award schedule
contracts to be open to all responsible and responsive
sources; and
820
HR 1530 PP
(ii) orders to be placed using a process which re-
sults in the lowest overall cost alternative to meet the
needs of the Government, except in a case in which
a written determination is made (in accordance with
such procedures) that a different alternative would
provide a substantially better overall value to the
Government.
(B) The Administrator may require offerors to agree
to accept orders electronically through the electronic ex-
change of procurement information in order to be eligible
for award of a multiple award schedule contract.
(C) Regulations on the acquisition of commercial items
issued pursuant to section 8002 of the Federal Acquisition
Streamlining Act of 1994 (Public Law 103–355; 108 Stat.
3386; 41 U.S.C. 264 note) shall apply to multiple award
schedule contracts.
(2) Within 90 days after the Administrator makes the
certification referred to in subsection (a)(3)(B), the Admin-
istrator shall establish a pilot program to test streamlined
procedures for the procurement of information technology
products and services available for ordering through the
multiple award schedules. The Administrator shall provide
for the pilot program to be applicable to all multiple award
schedule contracts for the purchase of information tech-
nology and to test the following procedures:
821
HR 1530 PP
(A) A procedure under which negotiation of the
terms and conditions for a covered multiple award
schedule contract is limited to terms and conditions
other than price.
(B) A procedure under which the vendor estab-
lishes the prices under a covered multiple award
schedule contract and may adjust those prices at any
time in the discretion of the vendor.
(C) A procedure under which a covered multiple
award schedule contract is awarded to any respon-
sible and responsive offeror that—
(i) has a suitable record of past perform-
ance on Federal Government contracts, including
multiple award schedule contracts;
(ii) agrees to terms and conditions that the
Administrator determines as being required by
law or as being appropriate for the purchase of
commercial items; and
(iii) agrees to establish and update prices
and to accept orders electronically through the
automated system established pursuant to sub-
section (a).
(3)(A) Not later than three years after the date on
which the pilot program is established, the Comptroller
General of the United States shall review the pilot program
822
HR 1530 PP
and report to the Committee on Governmental Affairs and
the Committee on Small Business of the Senate and the
Committee on Government Reform and Oversight and the
Committee on Small Business of the House of Representa-
tives on the results of the pilot program.
(B) The report shall include the following:
(i) An evaluation of the extent of the competition
for the orders placed under the pilot program.
(ii) The effect of the pilot program on prices
charged under multiple award schedule contracts.
(iii) The effect of the pilot program on paper-
work requirements for multiple award schedule con-
tracts and orders.
(iv) The impact of the pilot program on small
businesses and socially and economically disadvan-
taged small businesses.
(4) Unless reauthorized by Congress, the authority of
the Administrator to award contracts under the pilot pro-
gram shall expire four years after the date on which the
pilot program is established. Contracts entered into before
the authority expires shall remain in effect in accordance
with their terms notwithstanding the expiration of the au-
thority to enter new contracts under the pilot program.
(c) DEFINITIONS.—In this section:
823
HR 1530 PP
(1) The term ‘‘information technology’’ has the
meaning given that term in section 4 of this Act.
(2) The term ‘‘commercial item’’ has the mean-
ing given the term in section 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(12)).
(3) The term ‘‘competitive procedures’’ has the
meaning given the term in section 309(b) of the Fed-
eral Property and Administrative Services Act of
1949 (41 U.S.C. 259(b)).
SEC. 4402. DISPOSAL OF EXCESS COMPUTER EQUIPMENT.
(a) AUTHORITY TO DONATE.—The head of an execu-
tive agency may, without regard to the procedures otherwise
applicable under title II of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 481 et seq.),
convey without consideration all right, title, and interest
of the United States in any computer equipment under the
control of such official that is determined under title II of
such Act as being excess property to a recipient in the fol-
lowing order of priority:
(1) Elementary and secondary schools under the
jurisdiction of a local educational agency and schools
funded by the Bureau of Indian Affairs.
(2) Public libraries.
(3) Public colleges and universities.
824
HR 1530 PP
(b) INVENTORY REQUIRED.—Upon the enactment of
this Act, the head of an executive agency shall inventory
all computer equipment under the control of that official
and identify in accordance with title II of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C.
481 et seq.) the equipment, if any, that is excess property.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘excess property’’ has the meaning
given such term in section 3 of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C.
472).
(2) The terms ‘‘local educational agency’’, ‘‘ele-
mentary school’’, and ‘‘secondary school’’ have the
meanings given such terms in section 14101 of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
SEC. 4403. LEASING INFORMATION TECHNOLOGY.
(a) ANALYSIS BY GAO.—The Comptroller General of
the United States shall perform a comparative analysis of
alternative means of financing the acquisition of informa-
tion technology. The analysis should—
(1) investigate the full range of alternative fi-
nancing mechanisms, to include leasing, purchasing
and rentals of new and used equipment; and
825
HR 1530 PP
(2) assess the relative costs, benefits and risks of
alternative financing options for the Federal Govern-
ment.
(b) LEASING GUIDELINES.—Based on the analysis, the
Comptroller General shall develop recommended guidelines
for financing information technology for executive agencies.
TITLE XLV—PROCUREMENT PRO-
TEST 
AUTHORITY 
OF 
THE
COMPTROLLER GENERAL
SEC. 4501. PERIOD FOR PROCESSING PROTESTS.
Section 3554(a) of title 31, United States Code, is
amended—
(1) in paragraph (1), by striking out ‘‘para-
graph (2)’’ in the second sentence and inserting in
lieu thereof ‘‘paragraphs (2) and (5)’’; and
(2) by adding at the end the following:
‘‘(5)(A) The requirements and restrictions set
forth in this paragraph apply in the case of a protest
in a procurement of information technology.
‘‘(B) The Comptroller General shall issue a final
decision concerning a protest referred to in subpara-
graph (A) within 45 days after the date of the protest
is submitted to the Comptroller General.
‘‘(C) The disposition under this subchapter of a
protest in a procurement referred to in subparagraph
826
HR 1530 PP
(A) bars any further protest under this subchapter by
the same interested party on the same procurement.’’.
SEC. 4502. DEFINITION.
Section 3551 of title 31, United States Code, is amend-
ed by adding at the end the following:
‘‘(4) The term ‘information technology’ has the
meaning given that term in section 4 of the Informa-
tion Technology Management Reform Act of 1995.’’.
SEC. 4503. EXCLUSIVITY OF ADMINISTRATIVE REMEDIES.
Section 3556 of title 31, United States Code, is amend-
ed by striking out the first sentence and inserting in lieu
thereof the following:
‘‘Notwithstanding any other provision of law, the
Comptroller General shall have the exclusive administrative
authority to resolve a protest involving the solicitation, a
proposal for award, or an award of a contract for informa-
tion technology, to the exclusion of the boards of contract
appeals or any other entity. Nothing contained in the sub-
chapter shall affect the right of any interested party to file
a protest with the contracting agency or to file an action
in a district court of the United States of the United States
Court of Federal Claims.’’.
827
HR 1530 PP
TITLE 
XLVI—RELATED 
TERMI-
NATIONS, 
CONFORMING
AMENDMENTS, AND CLERICAL
AMENDMENTS
Subtitle A—Conforming
Amendments
SEC. 4601. AMENDMENTS TO TITLE 10, UNITED STATES
CODE.
For the Department of Defense section 2315 of such
title is amended by striking out from the words ‘‘Section
111’’ through the words ‘‘use of equipment or services if,’’
and substituting therein the following:
‘‘For the purposes of the Information Technology Man-
agement Reform Act of 1995, the term ‘national security
systems’ means those telecommunications and information
systems operated by the Department of Defense, the func-
tions, operation or use of which’’.
SEC. 4602. AMENDMENTS TO TITLE 28, UNITED STATES
CODE.
Section 612 of title 28, United States Code, is amend-
ed—
(1) in subsection (f), by striking out ‘‘section 111
of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 759)’’ and inserting in lieu
thereof ‘‘the provisions of law, policies, and regula-