HR 5414 RH 
(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 
(ii) the time and place for submission of proposals. 
(c) EVALUATION FACTORS.— 
(1) IN GENERAL.—In prescribing the evaluation factors to be in-
cluded in each solicitation for competitive proposals, an executive agen-
cy shall— 
(A) establish clearly the relative importance assigned to the 
evaluation factors and subfactors, including the quality of the 
product or services to be provided (including technical capability, 
management capability, prior experience, and past performance of 
the offeror); 
(B) include cost or price to the Federal Government as an eval-
uation factor that must be considered in the evaluation of pro-
posals; and 
(C) disclose to offerors whether all evaluation factors other than 
cost or price, when combined, are— 
(i) significantly more important than cost or price; 
(ii) approximately equal in importance to cost or price; or 
(iii) significantly less important than cost or price. 
(2) RESTRICTION
ON
IMPLEMENTING
REGULATIONS.—Regulations 
implementing paragraph (1)(C) may not define the terms ‘‘significantly 
more important’’ and ‘‘significantly less important’’ as specific numeric 
weights that would be applied uniformly to all solicitations or a class 
of solicitations. 
(d) ADDITIONAL INFORMATION IN SOLICITATION.—This section does not 
prohibit an executive agency from— 
(1) providing additional information in a solicitation, including nu-
meric weights for all evaluation factors and subfactors on a case-by- 
case basis; or 
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(2) stating in a solicitation that award will be made to the offeror 
that meets the solicitation’s mandatory requirements at the lowest cost 
or price. 
(e) LIMITATION ON EVALUATION OF PURCHASE OPTIONS.—An executive 
agency, in issuing a solicitation for a contract to be awarded using sealed 
bid procedures, may not include in the solicitation a clause providing for the 
evaluation of prices for options to purchase additional property or services 
under the contract unless the executive agency has determined that there 
is a reasonable likelihood that the options will be exercised. 
(f) AUTHORIZATION
OF TELECOMMUTING
FOR FEDERAL CONTRAC-
TORS.— 
(1) DEFINITION.—In this subsection, the term ‘‘executive agency’’ 
has the meaning given that term in section 133 of this title. 
(2) FEDERAL
ACQUISITION
REGULATION
TO
ALLOW
TELECOM-
MUTING.—The Federal Acquisition Regulation issued in accordance 
with sections 1121(b) and 1303(a)(1) of this title shall permit telecom-
muting by employees of Federal Government contractors in the per-
formance of contracts entered into with executive agencies. 
(3) SCOPE OF ALLOWANCE.—The Federal Acquisition Regulation at 
a minimum shall provide that a solicitation for the acquisition of prop-
erty or services may not set forth any requirement or evaluation cri-
teria that would— 
(A) render an offeror ineligible to enter into a contract on the 
basis of the inclusion of a plan of the offeror to allow the offeror’s 
employees to telecommute, unless the contracting officer concerned 
first determines that the requirements of the agency, including se-
curity requirements, cannot be met if telecommuting is allowed 
and documents in writing the basis for the determination; or 
(B) reduce the scoring of an offer on the basis of the inclusion 
in the offer of a plan of the offeror to allow the offeror’s employ-
ees to telecommute, unless the contracting officer concerned first 
determines that the requirements of the agency, including security 
requirements, would be adversely impacted if telecommuting is al-
lowed and documents in writing the basis for the determination. 
§ 3306. Preference for commercial items 
(a) RELATIONSHIP OF PROVISIONS OF LAW TO PROCUREMENT OF COM-
MERCIAL ITEMS.— 
(1) THIS PART.—Unless otherwise specifically provided, all other 
provisions in this part also apply to the procurement of commercial 
items. 
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(2) LAWS LISTED IN FEDERAL ACQUISITION REGULATION.—A con-
tract for the procurement of a commercial item entered into by the 
head of an executive agency is not subject to a law properly listed in 
the Federal Acquisition Regulation pursuant to section 1906 of this 
title. 
(b) PREFERENCE.—The head of each executive agency shall ensure that, 
to the maximum extent practicable— 
(1) requirements of the executive agency with respect to a procure-
ment of supplies or services are stated in terms of— 
(A) functions to be performed; 
(B) performance required; or 
(C) essential physical characteristics; 
(2) those requirements are defined so that commercial items or, to 
the extent that commercial items suitable to meet the executive agen-
cy’s needs are not available, nondevelopmental items other than com-
mercial items may be procured to fulfill those requirements; and 
(3) offerors of commercial items and nondevelopmental items other 
than commercial items are provided an opportunity to compete in any 
procurement to fill those requirements. 
(c) IMPLEMENTATION.—The head of each executive agency shall ensure 
that procurement officials in that executive agency, to the maximum extent 
practicable— 
(1) acquire commercial items or nondevelopmental items other than 
commercial items to meet the needs of the executive agency; 
(2) require that prime contractors and subcontractors at all levels 
under contracts of the executive agency incorporate commercial items 
or nondevelopmental items other than commercial items as components 
of items supplied to the executive agency; 
(3) modify requirements in appropriate cases to ensure that the re-
quirements can be met by commercial items or, to the extent that com-
mercial items suitable to meet the executive agency’s needs are not 
available, nondevelopmental items other than commercial items; 
(4) state specifications in terms that enable and encourage bidders 
and offerors to supply commercial items or, to the extent that commer-
cial items suitable to meet the executive agency’s needs are not avail-
able, nondevelopmental items other than commercial items in response 
to the executive agency solicitations; 
(5) revise the executive agency’s procurement policies, practices, and 
procedures not required by law to reduce any impediments in those 
policies, practices, and procedures to the acquisition of commercial 
items; and 
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(6) require training of appropriate personnel in the acquisition of 
commercial items. 
(d) MARKET RESEARCH.— 
(1) WHEN TO BE USED.—The head of an executive agency shall con-
duct market research appropriate to the circumstances— 
(A) before developing new specifications for a procurement by 
that executive agency; and 
(B) before soliciting bids or proposals for a contract in excess 
of the simplified acquisition threshold. 
(2) USE OF RESULTS.—The head of an executive agency shall use 
the results of market research to determine whether commercial items 
or, to the extent that commercial items suitable to meet the executive 
agency’s needs are not available, nondevelopmental items other than 
commercial items are available that— 
(A) meet the executive agency’s requirements; 
(B) could be modified to meet the executive agency’s require-
ments; or 
(C) could meet the executive agency’s requirements if those re-
quirements were modified to a reasonable extent. 
(3) ONLY MINIMUM INFORMATION REQUIRED TO BE SUBMITTED.— 
In conducting market research, the head of an executive agency should 
not require potential sources to submit more than the minimum infor-
mation that is necessary to make the determinations required in para-
graph (2). 
(e) REGULATIONS.— 
(1) IN GENERAL.—The Federal Acquisition Regulation shall provide 
regulations to implement this section, sections 102, 103, 105, and 110 
of this title, and chapter 140 of title 10. 
(2) CONTRACT CLAUSES.— 
(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) LIST OF CLAUSES TO BE INCLUDED.—The regulations pre-
scribed under paragraph (1) shall contain a list of contract clauses 
to be included in contracts for the acquisition of commercial end 
items. To the maximum extent practicable, the list shall include 
only those contract clauses that are— 
(i) required to implement provisions of law or executive or-
ders applicable to acquisitions of commercial items or com-
mercial components; or 
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(ii) determined to be consistent with standard commercial 
practice. 
(C) REQUIREMENTS OF PRIME CONTRACTOR.—The regulations 
shall provide that the Federal Government shall not require a 
prime contractor to apply to any of its divisions, subsidiaries, af-
filiates, subcontractors, or suppliers that are furnishing commer-
cial items any contract clause except those that are— 
(i) required to implement provisions of law or executive or-
ders applicable to subcontractors furnishing commercial items 
or commercial components; or 
(ii) determined to be consistent with standard commercial 
practice. 
(D) CLAUSES THAT MAY BE USED IN A CONTRACT.—To the 
maximum extent practicable, only the contract clauses listed pur-
suant to subparagraph (B) may be used in a contract, and only 
the contract clauses referred to in subparagraph (C) may be re-
quired to be used in a subcontract, for the acquisition of commer-
cial items or commercial components by or for an executive agen-
cy. 
(E) WAIVER OF CONTRACT CLAUSES.—The Federal Acquisition 
Regulation shall provide standards and procedures for waiving the 
use of contract clauses required pursuant to subparagraph (B), 
other than those required by law, including standards for deter-
mining the cases in which a waiver is appropriate. 
(3) MARKET ACCEPTANCE.— 
(A) REQUIREMENT
OF
OFFERORS.—The Federal Acquisition 
Regulation shall provide that under appropriate conditions the 
head of an executive agency may require offerors to demonstrate 
that the items offered— 
(i) have achieved commercial market acceptance or been 
satisfactorily supplied to an executive agency under current or 
recent contracts for the same or similar requirements; and 
(ii) otherwise meet the item description, specifications, or 
other criteria prescribed in the public notice and solicitation 
relating to the contract. 
(B) REGULATION TO PROVIDE GUIDANCE ON CRITERIA.—The 
Federal Acquisition Regulation shall provide guidance to ensure 
that the criteria for determining commercial market acceptance in-
clude the consideration of— 
(i) the minimum needs of the executive agency concerned; 
and 
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(ii) the entire relevant commercial market, including small 
businesses. 
(4) PROVISIONS RELATING TO TYPES OF CONTRACTS.— 
(A) TYPES OF CONTRACTS THAT MAY BE USED.—The Federal 
Acquisition Regulation shall include, for acquisitions of commercial 
items— 
(i) a requirement that firm, fixed price contracts or fixed 
price with economic price adjustment contracts be used to the 
maximum extent practicable; 
(ii) a prohibition on use of cost type contracts; and 
(iii) subject to subparagraph (B), authority for use of a 
time-and-materials or labor-hour contract for the procurement 
of commercial services that are commonly sold to the general 
public through those contracts and are purchased by the pro-
curing agency on a competitive basis. 
(B) WHEN TIME-AND-MATERIALS OR LABOR-HOUR CONTRACT 
MAY BE USED.—A time-and-materials or labor-hour contract may 
be used pursuant to the authority referred to in subparagraph 
(A)(iii)— 
(i) only for a procurement of commercial services in a cat-
egory of commercial services described in subparagraph (C); 
and 
(ii) only if the contracting officer for the procurement— 
(I) executes a determination and findings that no 
other contract type is suitable; 
(II) includes in the contract a ceiling price that the 
contractor exceeds at its own risk; and 
(III) authorizes a subsequent change in the ceiling 
price only on a determination, documented in the con-
tract file, that it is in the best interest of the procuring 
agency to change the ceiling price. 
(C) CATEGORIES OF COMMERCIAL SERVICES.—The categories of 
commercial services referred to in subparagraph (B) are as fol-
lows: 
(i) Commercial services procured for support of a commer-
cial item, as described in section 103(5) of this title. 
(ii) Any other category of commercial services that the Ad-
ministrator for Federal Procurement Policy designates in the 
Federal Acquisition Regulation for the purposes of this sub-
paragraph on the basis that— 
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(I) the commercial services in the category are of a 
type of commercial services that are commonly sold to 
the general public through use of time-and-materials or 
labor-hour contracts; and 
(II) it would be in the best interests of the Federal 
Government to authorize use of time-and-materials or 
labor-hour contracts for purchases of the commercial 
services in the category. 
(5) CONTRACT
QUALITY
REQUIREMENTS.—Regulations prescribed 
under paragraph (1) shall include provisions that— 
(A) allow, to the maximum extent practicable, a contractor 
under a commercial items acquisition to use the existing quality 
assurance system of the contractor as a substitute for compliance 
with an otherwise applicable requirement for the Federal Govern-
ment to inspect or test the commercial items before the contrac-
tor’s tender of those items for acceptance by the Federal Govern-
ment; 
(B) require that, to the maximum extent practicable, the execu-
tive agency take advantage of warranties (including extended war-
ranties) offered by offerors of commercial items and use those 
warranties for the repair and replacement of commercial items; 
and 
(C) set forth guidance regarding the use of past performance of 
commercial items and sources as a factor in contract award deci-
sions. 
§ 3307. Planning for future competition in contracts for 
major systems 
(a) DEVELOPMENT CONTRACT.— 
(1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In pre-
paring a solicitation for the award of a development contract for a 
major system, the head of an agency shall consider requiring in the so-
licitation that an offeror include in its offer proposals described in 
paragraph (2). In determining whether to require the proposals, the 
head of the agency shall consider the purposes for which the system 
is being procured and the technology necessary to meet the system’s 
required capabilities. If the proposals are required, the head of the 
agency shall consider them in evaluating the offeror’s price. 
(2) CONTENTS OF PROPOSALS.—The proposals that the head of an 
agency is to consider requiring in a solicitation for the award of a de-
velopment contract are the following: 
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(A) Proposals to incorporate in the design of the major system 
items that are currently available within the supply system of the 
Federal agency responsible for the major system, available else-
where in the national supply system, or commercially available 
from more than one source. 
(B) With respect to items that are likely to be required in sub-
stantial quantities during the system’s service life, proposals to in-
corporate in the design of the major system items that the Federal 
Government will be able to acquire competitively in the future. 
(b) PRODUCTION CONTRACT.— 
(1) DETERMINING WHETHER PROPOSALS ARE NECESSARY.—In pre-
paring a solicitation for the award of a production contract for a major 
system, the head of an agency shall consider requiring in the solicita-
tion that an offeror include in its offer proposals described in para-
graph (2). In determining whether to require the proposals, the head 
of the agency shall consider the purposes for which the system is being 
procured and the technology necessary to meet the system’s required 
capabilities. If the proposals are required, the head of the agency shall 
consider them in evaluating the offeror’s price. 
(2) CONTENT OF PROPOSALS.—The proposals that the head of an 
agency is to consider requiring in a solicitation for the award of a pro-
duction contract are proposals identifying opportunities to ensure that 
the Federal Government will be able to obtain on a competitive basis 
items procured in connection with the system that are likely to be re-
procured in substantial quantities during the service life of the system. 
Proposals submitted in response to this requirement may include the 
following: 
(A) Proposals to provide to the Federal Government the right 
to use technical data to be provided under the contract for com-
petitive reprocurement of the item, together with the cost to the 
Federal Government of acquiring the data and the right to use the 
data. 
(B) Proposals for the qualification or development of multiple 
sources of supply for the item. 
(c) CONSIDERATION OF FACTORS AS OBJECTIVES IN NEGOTIATIONS.— 
If the head of an agency is making a noncompetitive award of a develop-
ment contract or a production contract for a major system, the factors spec-
ified in subsections (a) and (b) to be considered in evaluating an offer for 
a contract may be considered as objectives in negotiating the contract to 
be awarded. 
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§ 3308. Design-build selection procedures 
(a) AUTHORIZATION.—Unless the traditional acquisition approach of de-
sign-bid-build established under sections 1101 to 1104 of title 40 or another 
acquisition procedure authorized by law is used, the head of an executive 
agency shall use the two-phase selection procedures authorized in this sec-
tion for entering into a contract for the design and construction of a public 
building, facility, or work when a determination is made under subsection 
(b) that the procedures are appropriate for use. 
(b) CRITERIA FOR USE.—A contracting officer shall make a determina-
tion whether two-phase selection procedures are appropriate for use for en-
tering into a contract for the design and construction of a public building, 
facility, or work when— 
(1) the contracting officer anticipates that 3 or more offers will be 
received for the contract; 
(2) design work must be performed before an offeror can develop a 
price or cost proposal for the contract; 
(3) the offeror will incur a substantial amount of expense in pre-
paring the offer; and 
(4) the contracting officer has considered information such as the 
following: 
(A) The extent to which the project requirements have been 
adequately defined. 
(B) The time constraints for delivery of the project. 
(C) The capability and experience of potential contractors. 
(D) The suitability of the project for use of the two-phase selec-
tion procedures. 
(E) The capability of the agency to manage the two-phase selec-
tion process. 
(F) Other criteria established by the agency. 
(c) PROCEDURES DESCRIBED.—Two-phase selection procedures consist of 
the following: 
(1) DEVELOPMENT OF SCOPE OF WORK STATEMENT.—The agency 
develops, either in-house or by contract, a scope of work statement for 
inclusion in the solicitation that defines the project and provides pro-
spective offerors with sufficient information regarding the Federal Gov-
ernment’s requirements (which may include criteria and preliminary de-
sign, budget parameters, and schedule or delivery requirements) to en-
able the offerors to submit proposals that meet the Federal Govern-
ment’s needs. If the agency contracts for development of the scope of 
work statement, the agency shall contract for architectural and engi-
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neering services as defined by and in accordance with sections 1101 to 
1104 of title 40. 
(2) SOLICITATION OF PHASE-ONE PROPOSALS.—The contracting offi-
cer solicits phase-one proposals that— 
(A) include information on the offeror’s— 
(i) technical approach; and 
(ii) technical qualifications; and 
(B) do not include— 
(i) detailed design information; or 
(ii) cost or price information. 
(3) EVALUATION FACTORS.—The evaluation factors to be used in 
evaluating phase-one proposals are stated in the solicitation and include 
specialized experience and technical competence, capability to perform, 
past performance of the offeror’s team (including the architect-engineer 
and construction members of the team), and other appropriate factors, 
except that cost-related or price-related evaluation factors are not per-
mitted. Each solicitation establishes the relative importance assigned to 
the evaluation factors and subfactors that must be considered in the 
evaluation of phase-one proposals. The agency evaluates phase-one pro-
posals on the basis of the phase-one evaluation factors set forth in the 
solicitation. 
(4) SELECTION BY CONTRACTING OFFICER.— 
(A) NUMBER OF OFFERORS SELECTED AND WHAT IS TO BE 
EVALUATED.—The contracting officer selects as the most highly 
qualified the number of offerors specified in the solicitation to pro-
vide the property or services under the contract and requests the 
selected offerors to submit phase-two competitive proposals that 
include technical proposals and cost or price information. Each so-
licitation establishes with respect to phase two— 
(i) the technical submission for the proposal, including de-
sign concepts or proposed solutions to requirements addressed 
within the scope of work, or both; and 
(ii) the evaluation factors and subfactors, including cost or 
price, that must be considered in the evaluations of proposals 
in accordance with subsections (b) to (d) of section 3305 of 
this title. 
(B) SEPARATE
EVALUATIONS.—The contracting officer sepa-
rately evaluates the submissions described in clauses (i) and (ii) 
of subparagraph (A). 
(5) AWARDING OF CONTRACT.—The agency awards the contract in 
accordance with chapter 37 of this title. 
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(d) SOLICITATION TO STATE NUMBER OF OFFERORS TO BE SELECTED 
FOR PHASE-TWO REQUESTS FOR COMPETITIVE PROPOSALS.—A solicitation 
issued pursuant to the procedures described in subsection (c) shall state the 
maximum number of offerors that are to be selected to submit competitive 
proposals pursuant to subsection (c)(4). The maximum number specified in 
the solicitation shall not exceed 5 unless the agency determines with respect 
to an individual solicitation that a specified number greater than 5 is in the 
Federal Government’s interest and is consistent with the purposes and ob-
jectives of the two-phase selection process. 
(e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Federal Ac-
quisition Regulation shall include guidance— 
(1) regarding the factors that may be considered in determining 
whether the two-phase contracting procedures authorized by subsection 
(a) are appropriate for use in individual contracting situations; 
(2) regarding the factors that may be used in selecting contractors; 
and 
(3) providing for a uniform approach to be used Government-wide. 
§ 3309. Quantities to order 
(a) FACTORS AFFECTING QUANTITY TO ORDER.—Each executive agency 
shall procure supplies in a quantity that— 
(1) will result in the total cost and unit cost most advantageous to 
the Federal Government, where practicable; and 
(2) does not exceed the quantity reasonably expected to be required 
by the agency. 
(b) OFFEROR’S OPINION OF QUANTITY.—Each solicitation for a contract 
for supplies shall, if practicable, include a provision inviting each offeror re-
sponding to the solicitation to state an opinion on whether the quantity of 
supplies proposed to be procured is economically advantageous to the Fed-
eral Government and, if applicable, to recommend a quantity that would be 
more economically advantageous to the Federal Government. Each rec-
ommendation shall include a quotation of the total price and the unit price 
for supplies procured in each recommended quantity. 
§ 3310. Qualification requirement 
(a) DEFINITION.—In this section, the term ‘‘qualification requirement’’ 
means a requirement for testing or other quality assurance demonstration 
that must be completed by an offeror before award of a contract. 
(b) ACTIONS BEFORE ENFORCING QUALIFICATION REQUIREMENT.—Ex-
cept as provided in subsection (c), the head of an agency, before enforcing 
any qualification requirement, shall— 
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(1) prepare a written justification stating the necessity for estab-
lishing the qualification requirement and specify why the qualification 
requirement must be demonstrated before contract award; 
(2) specify in writing and make available to a potential offeror on 
request all requirements that a prospective offeror, or its product, must 
satisfy to become qualified, with those requirements to be limited to 
those least restrictive to meet the purposes necessitating the establish-
ment of the qualification requirement; 
(3) specify an estimate of the cost of testing and evaluation likely 
to be incurred by a potential offeror to become qualified; 
(4) ensure that a potential offeror is provided, on request, a prompt 
opportunity to demonstrate at its own expense (except as provided in 
subsection (d)) its ability to meet the standards specified for qualifica-
tion using— 
(A) qualified personnel and facilities— 
(i) of the agency concerned; 
(ii) of another agency obtained through interagency agree-
ment; or 
(iii) under contract; or 
(B) other methods approved by the agency (including use of ap-
proved testing and evaluation services not provided under contract 
to the agency); 
(5) if testing and evaluation services are provided under contract to 
the agency for the purposes of paragraph (4), provide to the extent 
possible that those services be provided by a contractor that— 
(A) is not expected to benefit from an absence of additional 
qualified sources; and 
(B) is required in the contract to adhere to any restriction on 
technical data asserted by the potential offeror seeking qualifica-
tion; and 
(6) ensure that a potential offeror seeking qualification is promptly 
informed whether qualification is attained and, if not attained, is 
promptly furnished specific information about why qualification was 
not attained. 
(c) APPLICABILITY, WAIVER AUTHORITY, AND REFERRAL OF OFFERS.— 
(1) APPLICABILITY.—Subsection (b) does not apply to a qualification 
requirement established by statute prior to October 30, 1984. 
(2) WAIVER AUTHORITY.— 
(A) 
SUBMISSION
OF
DETERMINATION
OF 
UNREASONABLENESS.—Except as provided in subparagraph (C), if 
it is unreasonable to specify the standards for qualification that 
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a prospective offeror or its product must satisfy, a determination 
to that effect shall be submitted to the advocate for competition 
of the procuring activity responsible for the purchase of the item 
subject to the qualification requirement. 
(B) AUTHORITY
TO
GRANT
WAIVER.—After considering any 
comments of the advocate for competition reviewing the deter-
mination, the head of the procuring activity may waive the re-
quirements of paragraphs (2) to (5) of subsection (b) for up to 
2 years with respect to the item subject to the qualification re-
quirement. 
(C) NONAPPLICABILITY TO QUALIFIED PRODUCTS LIST.—Waiv-
er authority under this paragraph does not apply with respect to 
a qualified products list. 
(3) SUBMISSION AND CONSIDERATION OF OFFER NOT TO BE DE-
NIED.—A potential offeror may not be denied the opportunity to sub-
mit and have considered an offer for a contract solely because the po-
tential offeror has not been identified as meeting a qualification re-
quirement if the potential offeror can demonstrate to the satisfaction 
of the contracting officer that the potential offeror or its product meets 
the standards established for qualification or can meet those standards 
before the date specified for award of the contract. 
(4) REFERRAL
TO
SMALL
BUSINESS
ADMINISTRATION
NOT
RE-
QUIRED.—This subsection does not require the referral of an offer to 
the Small Business Administration pursuant to section 8(b)(7) of the 
Small Business Act (15 U.S.C. 637(b)(7)) if the basis for the referral 
is a challenge by the offeror to either the validity of the qualification 
requirement or the offeror’s compliance with that requirement. 
(5) DELAY OF PROCUREMENT NOT REQUIRED.—The head of an 
agency need not delay a proposed procurement to comply with sub-
section (b) or to provide a potential offeror with an opportunity to dem-
onstrate its ability to meet the standards specified for qualification. 
(d) FEWER THAN 2 ACTUAL MANUFACTURERS.— 
(1) SOLICITATION AND TESTING OF ADDITIONAL SOURCES OR PROD-
UCTS.—If the number of qualified sources or qualified products avail-
able to compete actively for an anticipated future requirement is fewer 
than 2 actual manufacturers or the products of 2 actual manufactur-
ers, respectively, the head of the agency concerned shall— 
(A) publish notice periodically soliciting additional sources or 
products to seek qualification, unless the contracting officer deter-
mines that doing so would compromise national security; and 
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(B) subject to paragraph (2), bear the cost of conducting the 
specified testing and evaluation (excluding the cost associated with 
producing the item or establishing the production, quality control, 
or other system to be tested and evaluated) for a small business 
concern or a product manufactured by a small business concern 
that has met the standards specified for qualification and that 
could reasonably be expected to compete for a contract for that 
requirement. 
(2) WHEN AGENCY MAY BEAR COST.—The head of the agency con-
cerned may bear the cost under paragraph (1)(B) only if the head of 
the agency determines that the additional qualified sources or products 
are likely to result in cost savings from increased competition for future 
requirements sufficient to offset (within a reasonable period of time 
considering the duration and dollar value of anticipated future require-
ments) the cost incurred by the agency. 
(3) CERTIFICATION REQUIRED.—The head of the agency shall re-
quire a prospective contractor requesting the Federal Government to 
bear testing and evaluation costs under paragraph (1)(B) to certify its 
status as a small business concern under section 3 of the Small Busi-
ness Act (15 U.S.C. 632). 
(e) EXAMINATION
AND REVALIDATION
OF QUALIFICATION REQUIRE-
MENT.—Within 7 years after the establishment of a qualification require-
ment, the need for the requirement shall be examined and the standards of 
the requirement revalidated in accordance with the requirements of sub-
section (b). This subsection does not apply in the case of a qualification re-
quirement for which a waiver is in effect under subsection (c)(2). 
(f) WHEN ENFORCEMENT OF QUALIFICATION REQUIREMENT NOT AL-
LOWED.—Except in an emergency as determined by the head of the agency, 
after the head of the agency determines not to enforce a qualification re-
quirement for a solicitation, the agency may not enforce the requirement un-
less the agency complies with the requirements of subsection (b). 
CHAPTER 35—TRUTHFUL COST AND PRICING DATA 
Sec. 
3501.
Definitions. 
3502.
Required cost or pricing data and certification. 
3503.
Exceptions. 
3504.
Cost or pricing data on below-threshold contracts. 
3505.
Submission of other information. 
3506.
Price reductions for defective cost or pricing data. 
3507.
Interest and penalties for certain overpayments. 
3508.
Right to examine contractor records. 
§ 3501. Definitions 
In this chapter: 
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