832 
HR 5658 PCS 
to the availability of appropriations, contracting with indi-
viduals as personal services contractors to provide services 
as adjunct professors at the Academy, if the Maritime Ad-
ministrator determines that there is a need for adjunct 
professors and the need is not of permanent duration. 
(b) CONTRACT
REQUIREMENTS.—Each contract 
under the program— 
(1) must be approved by the Maritime Adminis-
trator; 
(2) subject to paragraph (3), shall be for a du-
ration, including options, of not to exceed one year 
unless the Maritime Administrator finds that excep-
tional circumstances justify an extension of up to 
one additional year; and 
(3) shall terminate not later than 6 months 
after the termination of contract authority under 
subsection (d). 
(c) LIMITATION ON NUMBER OF CONTRACTORS.—In 
awarding contacts under the program, the Maritime Ad-
ministrator shall ensure that not more than 25 individuals 
actively provide services in any one academic trimester, 
or equivalent, as contractors under the program. 
(d) TERMINATION OF CONTRACTING AUTHORITY.— 
The authority to award contracts under the program shall 
terminate upon the expiration of December 31, 2009. 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00832
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
833 
HR 5658 PCS 
(e) EXISTING CONTRACTS.—Any contract entered 
into before the effective date of this section for the services 
of an adjunct professor at the Academy shall remain in 
effect for the trimester (or trimesters) for which the serv-
ices were contracted. 
(f) DEFINITIONS.—In this section: 
(1) ACADEMY.—The term ‘‘Academy’’ means 
the United States Merchant Marine Academy. 
(2) MARITIME
ADMINISTRATOR.—The term 
‘‘Maritime Administrator’’ means the Administrator 
of the Maritime Administration, or a designee of the 
Administrator. 
(3) PROGRAM.—The term ‘‘program’’ means 
the program established under subsection (a). 
DIVISION D—GOVERNMENTWIDE 
ACQUISITION IMPROVEMENTS 
Sec. 4001. Short title. 
TITLE XLI—ENHANCED COMPETITION 
Sec. 4101. Minimizing sole-source contracts. 
Sec. 4102. Limitation on length of certain noncompetitive contracts. 
Sec. 4103. Requirement for purchase of property and services pursuant to mul-
tiple award contracts. 
TITLE XLII—CURBING ABUSE-PRONE CONTRACTS 
Sec. 4201. Regulations to minimize the inappropriate use of cost-reimburse-
ment contracts. 
Sec. 4202. Preventing abuse of interagency contracts. 
Sec. 4203. Prohibitions on the use of lead systems integrators. 
Sec. 4204. Regulations on excessive pass-through charges. 
Sec. 4205. Linking of award and incentive fees to acquisition outcomes. 
Sec. 4206. Minimizing abuse of commercial services item authority. 
TITLE XLIII—ACQUISITION WORKFORCE 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00833
Fmt 6652
Sfmt 6211
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
834 
HR 5658 PCS 
Sec. 4301. Acquisition workforce development fund. 
Sec. 4302. Contingency contracting corps. 
TITLE XLIV—ANTI-FRAUD PROVISIONS 
Sec. 4401. Protection for contractor employees from reprisal for disclosure of 
certain information. 
Sec. 4402. Mandatory Fraud Reporting. 
Sec. 4403. Access of General Accounting Office to Contractor Employees. 
Sec. 4404. Preventing conflicts of interest. 
TITLE XLV—ENHANCED CONTRACT TRANSPARENCY 
Sec. 4501. Disclosure of CEO salaries. 
Sec. 4502. Database for contracting officers and suspension and debarment of-
ficials. 
Sec. 4503. Review of database. 
Sec. 4504. Disclosure in applications. 
Sec. 4505. Role of interagency committee. 
Sec. 4506. Authorization of independent agencies. 
Sec. 4507. Authorization of appropriations. 
Sec. 4508. Report to Congress. 
Sec. 4509. Improvements to the Federal procurement data system. 
Sec. 4510. Protection of child custody arrangements for parents who are mem-
bers of the armed forces deployed in support of a contingency 
operation. 
SEC. 4001. SHORT TITLE. 
This division may be cited as the ‘‘Clean Contracting 
Act of 2008’’. 
TITLE XLI—ENHANCED 
COMPETITION 
SEC. 4101. MINIMIZING SOLE-SOURCE CONTRACTS. 
(a) PLANS REQUIRED.—Subject to subsection (c), 
the head of each executive agency covered by title III of 
the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 251 et seq.) or, in the case of the Depart-
ment of Defense, the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics, shall develop and im-
plement a plan to minimize, to the maximum extent prac-
ticable, the use of contracts entered into using procedures 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00834
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
835 
HR 5658 PCS 
other than competitive procedures by the agency or de-
partment concerned. The plan shall contain measurable 
goals and shall be completed and submitted to the Com-
mittee on Oversight and Government Reform of the House 
of Representatives, the Committee on Homeland Security 
and Governmental Affairs of the Senate, and the Commit-
tees on Appropriations of the House of Representatives 
and the Senate and, in the case of the Department of De-
fense and the Department of Energy, the Committees on 
Armed Services of the Senate and the House of Represent-
atives, with a copy provided to the Comptroller General, 
not later than 1 year after the date of the enactment of 
this Act. 
(b) COMPTROLLER GENERAL REVIEW.—The Comp-
troller General shall review the plans provided under sub-
section (a) and submit a report to Congress on the plans 
not later than 18 months after the date of the enactment 
of this Act. 
(c) REQUIREMENT LIMITED
TO CERTAIN AGEN-
CIES.—The requirement of subsection (a) shall apply only 
to those agencies that awarded contracts in a total amount 
of at least $1,000,000,000 in the fiscal year preceding the 
fiscal year in which the report is submitted. 
(d) CERTAIN CONTRACTS EXCLUDED.—The con-
tracts entered into under the authority of the Small Busi-
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00835
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
836 
HR 5658 PCS 
ness Act shall not be included in the plans developed and 
implemented under subsection (a), except contracts that 
are awarded pursuant to section 602 of Public Law 100– 
656 (as amended by section 22 of Public Law 101–37 
(103 Stat. 75), section 2 of title V of Public Law 101– 
515 (104 Stat. 2140), section 205 of Public Law 101– 
574 (104 Stat. 2819), and section 608 of Public Law 103– 
403 (108 Stat. 4204)). 
SEC. 4102. LIMITATION ON LENGTH OF CERTAIN NON-
COMPETITIVE CONTRACTS. 
(a) CIVILIAN AGENCY CONTRACTS.—Section 303(d) 
of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253(d)) is amended by adding at the 
end the following new paragraph: 
‘‘(3)(A) The contract period of a contract de-
scribed in subparagraph (B) that is entered into by 
an executive agency pursuant to the authority pro-
vided under subsection (c)(2)— 
‘‘(i) may not exceed the time necessary— 
‘‘(I) to meet the unusual and compel-
ling requirements of the work to be per-
formed under the contract; and 
‘‘(II) for the executive agency to enter 
into another contract for the required 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00836
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
837 
HR 5658 PCS 
goods or services through the use of com-
petitive procedures; and 
‘‘(ii) may not exceed 270 days unless the 
head of the executive agency entering into such 
contract 
determines 
that 
exceptional 
cir-
cumstances apply. 
‘‘(B) This paragraph applies to any contract in 
an amount greater than $1,000,000.’’. 
(b) DEFENSE CONTRACTS.—Section 2304(d) of title 
10, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(3)(A) The contract period of a contract de-
scribed in subparagraph (B) that is entered into by 
an agency pursuant to the authority provided under 
subsection (c)(2)— 
‘‘(i) may not exceed the time necessary— 
‘‘(I) to meet the unusual and compel-
ling requirements of the work to be per-
formed under the contract; and 
‘‘(II) for the agency to enter into an-
other contract for the required goods or 
services through the use of competitive 
procedures; and 
‘‘(ii) may not exceed 270 days unless the 
head of the agency entering into such contract 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00837
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
838 
HR 5658 PCS 
determines 
that 
exceptional 
circumstances 
apply. 
‘‘(B) This paragraph applies to any contract in 
an amount greater than $1,000,000.’’. 
SEC. 4103. REQUIREMENT FOR PURCHASE OF PROPERTY 
AND SERVICES PURSUANT TO MULTIPLE 
AWARD CONTRACTS. 
(a) REGULATIONS REQUIRED.—Not later than 12 
months after the date of the enactment of this Act, the 
Federal Acquisition Regulation shall be amended to re-
quire enhanced competition in the purchase of property 
and services by all executive agencies pursuant to multiple 
award contracts. 
(b) CONTENT OF REGULATIONS.— 
(1) IN GENERAL.—The regulations required by 
subsection (a) shall provide, at a minimum, that 
each individual purchase of property or services 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 determination that— 
(i) one of the circumstances described 
in paragraphs (1) through (4) of section 
303J(b) of the Federal Property and Ad-
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00838
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
839 
HR 5658 PCS 
ministrative Services Act of 1949 (41 
U.S.C. 253j(b)) or section 2304c(b) of title 
10, United States Code, applies to such in-
dividual purchase; or 
(ii) a law expressly authorizes or re-
quires 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) except as provided in paragraph (3), 
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 selec-
tion will be made) to be provided to all contrac-
tors offering such property or services under 
the multiple award contract; and 
(B) afford all contractors responding to 
the notice a fair opportunity to make an offer 
and have that offer fairly considered by the offi-
cial making the purchase. 
(3) EXCEPTION TO NOTICE REQUIREMENT.— 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00839
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
840 
HR 5658 PCS 
(A) IN GENERAL.—Notwithstanding para-
graph (2), and subject to subparagraph (B), no-
tice may be provided to fewer than all contrac-
tors offering such property or services under a 
multiple award contract as described in sub-
section (d)(2) if notice is provided to as many 
contractors as practicable. 
(B) LIMITATION ON EXCEPTION.—A pur-
chase may not be made pursuant to a notice 
that is provided to fewer than all contractors 
under subparagraph (A) unless— 
(i) offers were received from at least 
3 qualified contractors; or 
(ii) a contracting officer of the execu-
tive agency determines in writing that no 
additional qualified contractors were able 
to be identified despite reasonable efforts 
to do so. 
(c) PUBLIC NOTICE REQUIREMENTS RELATED TO 
SOLE SOURCE TASK OR DELIVERY ORDERS.—Not later 
than 12 months after the date of the enactment of this 
Act, the Federal Acquisition Regulation shall be amended 
to require the head of each executive agency to publish 
on— 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00840
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
841 
HR 5658 PCS 
(1) FedBizOpps notice of all sole source task or 
delivery orders in excess of the simplified acquisition 
threshold that are placed against multiple award 
contracts not later than 14 days after such orders 
are placed, except in the event of extraordinary cir-
cumstances or classified orders; and 
(2) the website of the agency and through a 
Governmentwide website selected by the Adminis-
trator for Federal Procurement Policy the deter-
minations required by (b)(1)(B) related to sole 
source task or delivery orders placed against mul-
tiple award contracts not later than 14 days after 
such orders are placed, except in the event of ex-
traordinary circumstances or classified orders. 
(3) This subsection does not require the public 
availability of information that is exempt from public 
disclosure under section 552(b) of title 5, United 
States Code. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘individual purchase’’ means a 
task order, delivery order, or other purchase. 
(2) The term ‘‘multiple award contract’’ 
means— 
(A) a contract that is entered into by the 
Administrator of General Services under the 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00841
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
842 
HR 5658 PCS 
multiple award schedule program referred to in 
section 2302(2)(C) of title 10, United States 
Code; 
(B) a multiple award task order contract 
that is entered into under the authority of sec-
tions 2304a through 2304d of title 10, United 
States Code, or sections 303H through 303K of 
the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253h through 
253k); and 
(C) any other indefinite delivery, indefinite 
quantity contract that is entered into by the 
head of an executive agency with 2 or more 
sources pursuant to the same solicitation. 
(3) The term ‘‘sole source task or delivery 
order’’ means any order that does not follow the 
competitive base procedures in paragraphs (b)(2) or 
(b)(3). 
(e) APPLICABILITY.—The regulations required by 
subsection (a) shall apply to all individual purchases of 
property or services that are made under multiple award 
contracts on or after such effective date, without regard 
to whether the multiple award contracts were entered into 
before, on, or after such effective date. 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00842
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
843 
HR 5658 PCS 
TITLE XLII—CURBING ABUSE- 
PRONE CONTRACTS 
SEC. 4201. REGULATIONS TO MINIMIZE THE INAPPRO-
PRIATE USE OF COST-REIMBURSEMENT CON-
TRACTS. 
(a) IN GENERAL.—Not later than 12 months after 
the date of the enactment of this Act, the Federal Acquisi-
tion Regulation shall be amended to minimize the inappro-
priate use of cost-reimbursement contracts and to ensure 
the proper use of such contracts. 
(b) CONTENT.—The regulations required under sub-
section (a) shall— 
(1) identify, at a minimum— 
(A) the circumstances under which cost re-
imbursement contracts or task or delivery or-
ders are appropriate; 
(B) the acquisition plan facts necessary to 
support a decision to use cost reimbursement 
contracts; 
(C) the acquisition workforce resources 
necessary to award and manage cost reimburse-
ment contracts; and 
(2) establish a requirement for each executive 
agency to— 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00843
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
844 
HR 5658 PCS 
(A) annually assess its use of cost-reim-
bursement contracts; 
(B) establish and implement metrics to 
measure progress toward minimizing any inap-
propriate use of cost-reimbursement contracts 
identified during the assessment process; and 
(C) prepare and submit an annual report 
to the Office of Management and Budget as-
sessing progress in meeting the metrics estab-
lished in (B). 
(c) COMPTROLLER GENERAL EVALUATIONS.—With-
in one year of the completion of the first annual reports 
required by subsection (b)(2)(C), the Comptroller General 
shall review the progress of agencies in implementing the 
regulations required by (a). 
(d) REPORT.—Subject to subsection (f), the Director 
of the Office of Management and Budget shall submit an 
annual report to Congressional committees identified in 
subparagraph (e) and the Comptroller General on the use 
of cost-reimbursement contracts and task or delivery or-
ders by all Federal agencies, including the Department of 
Defense. The report shall be submitted no later than 
March 1 and will cover the fiscal year ending September 
30 of the prior year. The report shall include— 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00844
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
845 
HR 5658 PCS 
(1) the total number and value of contracts 
awarded and orders issued during the covered fiscal 
year; 
(2) the number and value of cost-reimburse-
ment contracts awarded and orders issued during 
the covered fiscal year; 
(3) a list of contracts and task and delivery or-
ders identified in subparagraph (2) exceeding ten 
million dollars ($10,000,000), whose period of per-
formance, including options, exceeded three years; 
the reasons why such contracts or orders could not 
be priced or converted to a fixed-price basis; and the 
actions being taken by the agency to do so; 
(4) a certification by the contracting agency 
that for each contract identified in subparagraph (3) 
that an appropriate number of trained acquisition 
personnel, consistent with the complexity and risk 
associated with the contract or order, have been as-
signed to provide oversight of the contractor’s per-
formance; and 
(5) a description of each agency’s actions to as-
sure the appropriate use of cost-reimbursement con-
tracts. 
(e) CONGRESSIONAL COMMITTEES DEFINED.—The 
report required by subsection (d) shall be submitted to the 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00845
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
846 
HR 5658 PCS 
Committee on Oversight and Government Reform of the 
House of Representatives; the Committee on Homeland 
Security and Governmental Affairs of the Senate; the 
Committees on Appropriations of the House of Represent-
atives and the Senate; and, in the case of the Department 
of Defense and the Department of Energy, the Commit-
tees on Armed Services of the Senate and the House of 
Representatives. 
(f) REQUIREMENTS LIMITED
TO CERTAIN AGEN-
CIES.—The requirements of subsections (b) and (d) shall 
apply only to those agencies that awarded contracts and 
issued orders in a total amount of at least $1,000,000,000 
in the fiscal year proceeding the fiscal year in which the 
assessments and reports are submitted. 
SEC. 4202. PREVENTING ABUSE OF INTERAGENCY CON-
TRACTS. 
(a) OFFICE OF MANAGEMENT AND BUDGET POLICY 
GUIDANCE.— 
(1) REPORT AND GUIDELINES.—Not later than 
one year after the date of the enactment of this Act, 
the Director of the Office of Management and Budg-
et shall— 
(A) submit to Congress a comprehensive 
report on interagency acquisitions, including 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00846
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
847 
HR 5658 PCS 
their frequency of use, management controls, 
cost-effectiveness, and savings generated; and 
(B) issue guidelines to assist the heads of 
executive agencies in improving the manage-
ment of interagency acquisitions. 
(2) MATTERS COVERED BY GUIDELINES.—For 
purposes of paragraph (1)(B), the Director shall in-
clude guidelines on the following matters: 
(A) Procedures for the use of interagency 
acquisitions to maximize competition, deliver 
best value to executive agencies, and minimize 
waste, fraud, and abuse. 
(B) Categories of contracting inappropriate 
for interagency acquisition, due to high risk of 
waste, fraud, or abuse. 
(C) Requirements for training acquisition 
workforce personnel in the proper use of inter-
agency acquisitions. 
(b) REGULATIONS REQUIRED.—Not later than one 
year after the date of the enactment of this Act, the Fed-
eral Acquisition Regulation shall be revised to require that 
all interagency acquisitions— 
(1) include a written agreement between the re-
questing agency and the servicing agency assigning 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00847
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
848 
HR 5658 PCS 
responsibility for the administration and manage-
ment of the contract; 
(2) include a determination that an interagency 
acquisition is the best procurement alternative; and 
(3) include sufficient documentation to ensure 
an adequate audit. 
(c) AGENCY REPORTING REQUIREMENT.—The senior 
procurement executive for each executive agency shall, as 
directed by the Director of the Office of Management and 
Budget, submit to the Director annual reports on the ac-
tions taken by the executive agency pursuant to the guide-
lines issued under subsection (a). 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing given such term in section 4(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(1)). 
(2) The term ‘‘head of executive agency’’ means 
the head of an executive agency except that, in the 
case of a military department, the term means the 
Secretary of Defense. 
(3) The term ‘‘interagency acquisition’’ means 
a procedure by which an executive agency needing 
supplies or services (the requesting agency) obtains 
them from another executive agency (the servicing 
agency). The term includes acquisitions under sec-
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00848
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
849 
HR 5658 PCS 
tion 1535 of title 31, United States Code (commonly 
referred to as the ‘‘Economy Act’’, Federal Supply 
Schedules above $500,000, and Governmentwide ac-
quisition contracts. 
SEC. 4203. PROHIBITIONS ON THE USE OF LEAD SYSTEMS 
INTEGRATORS. 
(a) PROHIBITION ON NEW LEAD SYSTEMS INTEGRA-
TORS.—(1) Effective October 1, 2010, the head of an ex-
ecutive agency may not award a new contract for lead sys-
tems integrator functions in the acquisition of a major sys-
tem. 
(2) PROHIBITION ON LEAD SYSTEMS INTEGRATORS 
BEYOND DEMONSTRATION LEVEL PHASE.—Effective on 
the date of the enactment of this Act, an executive agency 
may award a new contract for lead systems integrator 
functions in the acquisition of a major system only if— 
(A) the contract for the major system does not 
proceed beyond the demonstration phase-level; or 
(B) the head of the agency determines in writ-
ing that it would not be practicable to carry out ac-
quisition without continuing to use a contractor to 
perform lead systems integrator functions and that 
doing so is in the best interest of the agency. 
(3) REQUIREMENTS
RELATING
TO
DETERMINA-
TIONS.—A determination under paragraph (2)(A)— 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00849
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
850 
HR 5658 PCS 
(A) shall specify the reasons why it would not 
be practicable to carry out the acquisition continuing 
to use a contractor to perform lead integrator func-
tions (including a discussion of alternatives, such as 
the use of the agency workforce, or a system engi-
neering and technical assistance contractor); 
(B) shall include a plan for phasing out the use 
of contracted lead systems integrator functions over 
the shortest period of time consistent with the inter-
est of the government; 
(C) may not be delegated below the level of the 
Chief Acquisition Officer; and 
(D) shall be provided to the Committee on 
Oversight and Government Reform in the House of 
Representatives and the Committee on Homeland 
Security and Governmental Affairs in the Senate at 
least 45 days before the award of a contract pursu-
ant to the determination. 
(b) ACQUISITION WORKFORCE.— 
(1) REQUIREMENT.—The head of an executive 
agency shall ensure that the acquisition workforce is 
of the appropriate size and skill level necessary— 
(A) to accomplish inherently governmental 
functions related to acquisition of major sys-
tems; and 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00850
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
851 
HR 5658 PCS 
(B) to effectuate the purpose of subsection 
(a) to minimize and eventually eliminate the use 
of contractors to perform lead systems inte-
grator functions. 
(2) REPORT.—The head of the agency shall an-
nually include an update on the progress made in 
complying with paragraph (1) in the agency’s Per-
formance and Accountability Report. 
(c) EXCEPTION FOR CONTRACTS FOR OTHER MAN-
AGEMENT SERVICES.—The head of an executive agency 
may continue to award contracts for the procurement of 
services the primary purpose of which is to perform acqui-
sition support functions with respect to the development 
or production of a major system, if the following condi-
tions are met with respect to each such contract: 
(1) The contract prohibits the contractor from 
performing inherently governmental functions. 
(2) The head of the agency responsible for the 
development or production of the major system en-
sures that Federal employees are responsible for de-
termining courses of action to be taken in the best 
interest of the government. 
(3) The contract requires that the prime con-
tractor for the contract may not advise or rec-
ommend the award of a contract or subcontract for 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00851
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
853 
HR 5658 PCS 
(A) work performed prior to first article 
testing and approval (as defined in part 9.3 of 
the Federal Acquisition Regulation; or 
(B) a level comparable to the level identi-
fied in subparagraph (A) which the FAR Coun-
cil determines, by regulation, after consider-
ation of the definition of low-rate initial produc-
tion (as defined in section 2400 of title 10, 
United States Code. 
(e) INAPPLICABILITY
TO
DEPARTMENT
OF
DE-
FENSE.—This section does not apply to the Department 
of Defense. 
SEC. 4204. REGULATIONS ON EXCESSIVE PASS-THROUGH 
CHARGES. 
(a) REGULATIONS REQUIRED.— 
(1) Not later than 180 days after the date of 
enactment of this Act, the Federal Acquisition Regu-
lation shall be amended ensure that excessive pass- 
through charges on contracts or (or task or delivery 
orders) are not paid by the Federal Government. 
(2) SCOPE OF REGULATIONS.—The regulations 
prescribed under this subsection— 
(A) shall not apply to any firm, fixed-price 
contract or subcontract (or task or delivery 
order) that is— 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00853
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
854 
HR 5658 PCS 
(i) awarded on the basis of adequate 
price competition; or 
(ii) for the acquisition of a commercial 
item, as defined in section 4(12) of the Of-
fice of Federal Procurement Policy Act (41 
U.S.C. 403(12)); and 
(B) may include such additional exceptions 
as the Federal Acquisition Regulation Council 
determines to be necessary in the interest of the 
government. 
(3) DEFINITION.—In this section, the term ‘‘ex-
cessive pass-through charge’’ means a charge to the 
Government by the contractor or subcontractor that 
is for overhead or profit on work performed by a 
lower-tier contractor or subcontractor (other than 
charges for the direct costs of managing lower-tier 
contracts and subcontracts and overhead and profit 
based on such direct costs) and for which the con-
tractor or subcontractor adds no, or negligible, value 
to a contract or subcontract. 
(b) INAPPLICABILITY
TO
DEPARTMENT
OF
DE-
FENSE.—This section does not apply to the Department 
of Defense. 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00854
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
855 
HR 5658 PCS 
SEC. 4205. LINKING OF AWARD AND INCENTIVE FEES TO 
ACQUISITION OUTCOMES. 
(a) GUIDANCE ON LINKING OF AWARD AND INCEN-
TIVE FEES TO ACQUISITION OUTCOMES.—Not later than 
12 months after the date of the enactment of this Act, 
the Federal Acquisition Regulation shall be amended to 
provide executive agencies with instructions, including 
definitions, on the appropriate use of award and incentive 
fees in Federal acquisition programs. 
(b) ELEMENTS.—The regulations under subsection 
(a) shall— 
(1) ensure that all new contracts using award 
fees link such fees to acquisition outcomes (which 
shall be defined in terms of program cost, schedule, 
and performance); 
(2) establish standards for identifying the ap-
propriate level of officials authorized to approve the 
use of award and incentive fees in new contracts; 
(3) provide guidance on the circumstances in 
which contractor performance may be judged to be 
‘‘excellent’’ or ‘‘superior’’ and the percentage of the 
available award fee which contractors should be paid 
for such performance; 
(4) establish standards for determining the per-
centage of the available award fee, if any, which con-
tractors should be paid for performance that is 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00855
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
856 
HR 5658 PCS 
judged to be ‘‘acceptable’’, ‘‘average’’, ‘‘expected’’, 
‘‘good’’, or ‘‘satisfactory’’; 
(5) ensure that no award fee may be paid for 
contractor performance that is judged to be below 
satisfactory performance or performance that does 
not meet the basic requirements of the contract; 
(6) provide specific direction on the cir-
cumstances, if any, in which it may be appropriate 
to roll over award fees that are not earned in one 
award fee period to a subsequent award fee period 
or periods; 
(7) ensure consistent use of guidelines and defi-
nitions relating to award and incentive fees across 
the Federal Government; 
(8) ensure that each executive agency— 
(A) collects relevant data on award and in-
centive fees paid to contractors; and 
(B) has mechanisms in place to evaluate 
such data on a regular basis; 
(9) include performance measures to evaluate 
the effectiveness of award and incentive fees as a 
tool for improving contractor performance and 
achieving desired program outcomes; and 
(10) provide mechanisms for sharing proven in-
centive strategies for the acquisition of different 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00856
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
857 
HR 5658 PCS 
types of products and services among contracting 
and program management officials. 
SEC. 4206. MINIMIZING ABUSE OF COMMERCIAL SERVICES 
ITEM AUTHORITY. 
(a) REGULATIONS REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the Fed-
eral Acquisition Regulation shall be amended for the pro-
curement of commercial services. 
(b) 
APPLICABILITY
OF
COMMERCIAL
PROCE-
DURES.— 
(1) SERVICES OF A TYPE SOLD IN MARKET-
PLACE.—The regulations modified pursuant to sub-
section (a) shall ensure that services that are not of-
fered and sold competitively in substantial quantities 
in the commercial marketplace, but are of a type of-
fered and sold competitively in substantial quantities 
in the commercial marketplace, may be treated as 
commercial items for purposes of section 254b of 
title 41, United States Code (relating to truth in ne-
gotiations), only if the contracting officer determines 
in writing that the offeror has submitted sufficient 
information to evaluate, through price analysis, the 
reasonableness of the price for such services. 
(2) INFORMATION SUBMITTED.—To the extent 
necessary to make a determination under paragraph 
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00857
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS
864 
HR 5658 PCS 
‘‘(f) Amounts credited to the fund shall be in addition 
to funds requested and appropriated for salaries, benefits, 
education and training for all current acquisition work-
force members. 
‘‘(g) Amounts credited to the fund shall remain avail-
able until expended. 
‘‘(h) Not later than 60 days after the end of each 
fiscal year beginning with fiscal year 2008, the Adminis-
trator of General Services shall submit to the congres-
sional committees identified in subsection (i) a report on 
the operation of the fund during such fiscal year. Each 
report shall include, for the fiscal year covered by such 
report, the following: 
‘‘(1) A statement of the amounts remitted to 
the Administrator for crediting to the Fund for such 
fiscal year by each executive agency and a statement 
of the amounts credited to the Fund. 
‘‘(2) A description of the expenditures made 
from the Fund, including the purpose of such ex-
penditures. 
‘‘(3) A description and assessment of improve-
ments in the Federal acquisition workforce resulting 
from such expenditures, including the extent to 
which the fund has been used to increase the num-
ber of individuals in the acquisition workforce rel-
VerDate Aug 31 2005 
03:10 Jun 04, 2008
Jkt 069200
PO 00000
Frm 00864
Fmt 6652
Sfmt 6201
E:\BILLS\H5658.PCS
H5658
bajohnson on PROD1PC77 with BILLS