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guidelines under section 6(e)(4) of the Inspector General Act
of 1978 (5 U.S.C. App.) (as added by subsection (a) of this
section) applicable to the Inspector General offices described
under section 6(e)(3) of that Act.
(3) MINIMUM REQUIREMENTS.—The guidelines promulgated
under this subsection shall include, at a minimum, the oper-
ational and training requirements in the memoranda of under-
standing.
(4) NO LAPSE OF AUTHORITY.—The memoranda of under-
standing in effect on the date of enactment of this Act shall
remain in effect until the guidelines promulgated under this
subsection take effect.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Subsection (a) shall take effect 180 days
after the date of enactment of this Act.
(2) INITIAL GUIDELINES.—Subsection (b) shall take effect
on the date of enactment of this Act.
Subtitle C—United States Secret Service
SEC. 821. FUNCTIONS TRANSFERRED.
In accordance with title XV, there shall be transferred to the
Secretary the functions, personnel, assets, and obligations of the
United States Secret Service, which shall be maintained as a dis-
tinct entity within the Department, including the functions of the
Secretary of the Treasury relating thereto.
Subtitle D—Acquisitions
SEC. 831. RESEARCH AND DEVELOPMENT PROJECTS.
(a) AUTHORITY.—During the 5-year period following the effective
date of this Act, the Secretary may carry out a pilot program
under which the Secretary may exercise the following authorities:
(1) IN GENERAL.—When the Secretary carries out basic,
applied, and advanced research and development projects,
including the expenditure of funds for such projects, the Sec-
retary may exercise the same authority (subject to the same
limitations and conditions) with respect to such research and
projects as the Secretary of Defense may exercise under section
2371 of title 10, United States Code (except for subsections
(b) and (f)), after making a determination that the use of
a contract, grant, or cooperative agreement for such project
is not feasible or appropriate. The annual report required under
subsection (b) of this section, as applied to the Secretary by
this paragraph, shall be submitted to the President of the
Senate and the Speaker of the House of Representatives.
(2) PROTOTYPE PROJECTS.—The Secretary may, under the
authority of paragraph (1), carry out prototype projects in
accordance with the requirements and conditions provided for
carrying out prototype projects under section 845 of the
National Defense Authorization Act for Fiscal Year 1994 (Public
Law 103–160). In applying the authorities of that section 845,
subsection (c) of that section shall apply with respect to proto-
type projects under this paragraph, and the Secretary shall
H. R. 5005—91
perform the functions of the Secretary of Defense under sub-
section (d) thereof.
(b) REPORT.—Not later than 2 years after the effective date
of this Act, and annually thereafter, the Comptroller General shall
report to the Committee on Government Reform of the House of
Representatives and the Committee on Governmental Affairs of
the Senate on—
(1) whether use of the authorities described in subsection
(a) attracts nontraditional Government contractors and results
in the acquisition of needed technologies; and
(2) if such authorities were to be made permanent, whether
additional safeguards are needed with respect to the use of
such authorities.
(c) PROCUREMENT
OF TEMPORARY
AND INTERMITTENT SERV-
ICES.—The Secretary may—
(1) procure the temporary or intermittent services of
experts or consultants (or organizations thereof) in accordance
with section 3109(b) of title 5, United States Code; and
(2) whenever necessary due to an urgent homeland security
need, procure temporary (not to exceed 1 year) or intermittent
personal services, including the services of experts or consult-
ants (or organizations thereof), without regard to the pay limita-
tions of such section 3109.
(d) 
DEFINITION
OF
NONTRADITIONAL
GOVERNMENT
CON-
TRACTOR.—In this section, the term ‘‘nontraditional Government
contractor’’ has the same meaning as the term ‘‘nontraditional
defense contractor’’ as defined in section 845(e) of the National
Defense Authorization Act for Fiscal Year 1994 (Public Law 103–
160; 10 U.S.C. 2371 note).
SEC. 832. PERSONAL SERVICES.
The Secretary—
(1) may procure the temporary or intermittent services
of experts or consultants (or organizations thereof) in accord-
ance with section 3109 of title 5, United States Code; and
(2) may, whenever necessary due to an urgent homeland
security need, procure temporary (not to exceed 1 year) or
intermittent personal services, including the services of experts
or consultants (or organizations thereof), without regard to
the pay limitations of such section 3109.
SEC. 833. SPECIAL STREAMLINED ACQUISITION AUTHORITY.
(a) AUTHORITY.—
(1) IN GENERAL.—The Secretary may use the authorities
set forth in this section with respect to any procurement made
during the period beginning on the effective date of this Act
and ending September 30, 2007, if the Secretary determines
in writing that the mission of the Department (as described
in section 101) would be seriously impaired without the use
of such authorities.
(2) DELEGATION.—The authority to make the determination
described in paragraph (1) may not be delegated by the Sec-
retary to an officer of the Department who is not appointed
by the President with the advice and consent of the Senate.
(3) NOTIFICATION.—Not later than the date that is 7 days
after the date of any determination under paragraph (1), the
Secretary shall submit to the Committee on Government
H. R. 5005—92
Reform of the House of Representatives and the Committee
on Governmental Affairs of the Senate—
(A) notification of such determination; and
(B) the justification for such determination.
(b) INCREASED
MICRO-PURCHASE
THRESHOLD
FOR
CERTAIN
PROCUREMENTS.—
(1) IN
GENERAL.—The Secretary may designate certain
employees of the Department to make procurements described
in subsection (a) for which in the administration of section
32 of the Office of Federal Procurement Policy Act (41 U.S.C.
428) the amount specified in subsections (c), (d), and (f) of
such section 32 shall be deemed to be $7,500.
(2) NUMBER
OF
EMPLOYEES.—The number of employees
designated under paragraph (1) shall be—
(A) fewer than the number of employees of the Depart-
ment who are authorized to make purchases without
obtaining competitive quotations, pursuant to section 32(c)
of the Office of Federal Procurement Policy Act (41 U.S.C.
428(c));
(B) sufficient to ensure the geographic dispersal of
the availability of the use of the procurement authority
under such paragraph at locations reasonably considered
to be potential terrorist targets; and
(C) sufficiently limited to allow for the careful moni-
toring of employees designated under such paragraph.
(3) REVIEW.—Procurements made under the authority of
this subsection shall be subject to review by a designated super-
visor on not less than a monthly basis. The supervisor respon-
sible for the review shall be responsible for no more than
7 employees making procurements under this subsection.
(c) SIMPLIFIED ACQUISITION PROCEDURES.—
(1) IN GENERAL.—With respect to a procurement described
in subsection (a), the Secretary may deem the simplified
acquisition threshold referred to in section 4(11) of the Office
of Federal Procurement Policy Act (41 U.S.C. 403(11)) to be—
(A) in the case of a contract to be awarded and per-
formed, or purchase to be made, within the United States,
$200,000; and
(B) in the case of a contract to be awarded and per-
formed, or purchase to be made, outside of the United
States, $300,000.
(2) CONFORMING
AMENDMENTS.—Section 18(c)(1) of the
Office of Federal Procurement Policy Act is amended—
(A) by striking ‘‘or’’ at the end of subparagraph (F);
(B) by striking the period at the end of subparagraph
(G) and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(H) the procurement is by the Secretary of Homeland
Security pursuant to the special procedures provided in section
833(c) of the Homeland Security Act of 2002.’’.
(d) APPLICATION
OF CERTAIN COMMERCIAL ITEMS AUTHORI-
TIES.—
(1) IN GENERAL.—With respect to a procurement described
in subsection (a), the Secretary may deem any item or service
to be a commercial item for the purpose of Federal procurement
laws.
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(2) LIMITATION.—The $5,000,000 limitation provided in sec-
tion 31(a)(2) of the Office of Federal Procurement Policy Act
(41 U.S.C. 427(a)(2)) and section 303(g)(1)(B) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
253(g)(1)(B)) shall be deemed to be $7,500,000 for purposes
of property or services under the authority of this subsection.
(3) CERTAIN AUTHORITY.—Authority under a provision of
law referred to in paragraph (2) that expires under section
4202(e) of the Clinger-Cohen Act of 1996 (divisions D and
E of Public Law 104–106; 10 U.S.C. 2304 note) shall, notwith-
standing such section, continue to apply for a procurement
described in subsection (a).
(e) REPORT.—Not later than 180 days after the end of fiscal
year 2005, the Comptroller General shall submit to the Committee
on Governmental Affairs of the Senate and the Committee on
Government Reform of the House of Representatives a report on
the use of the authorities provided in this section. The report
shall contain the following:
(1) An assessment of the extent to which property and
services acquired using authorities provided under this section
contributed to the capacity of the Federal workforce to facilitate
the mission of the Department as described in section 101.
(2) An assessment of the extent to which prices for property
and services acquired using authorities provided under this
section reflected the best value.
(3) The number of employees designated by each executive
agency under subsection (b)(1).
(4) An assessment of the extent to which the Department
has implemented subsections (b)(2) and (b)(3) to monitor the
use of procurement authority by employees designated under
subsection (b)(1).
(5) Any recommendations of the Comptroller General for
improving the effectiveness of the implementation of the provi-
sions of this section.
SEC. 834. UNSOLICITED PROPOSALS.
(a) REGULATIONS REQUIRED.—Within 1 year of the date of enact-
ment of this Act, the Federal Acquisition Regulation shall be revised
to include regulations with regard to unsolicited proposals.
(b) CONTENT
OF REGULATIONS.—The regulations prescribed
under subsection (a) shall require that before initiating a com-
prehensive evaluation, an agency contact point shall consider,
among other factors, that the proposal—
(1) is not submitted in response to a previously published
agency requirement; and
(2) contains technical and cost information for evaluation
and overall scientific, technical or socioeconomic merit, or cost-
related or price-related factors.
SEC. 835. PROHIBITION ON CONTRACTS WITH CORPORATE EXPATRI-
ATES.
(a) IN GENERAL.—The Secretary may not enter into any contract
with a foreign incorporated entity which is treated as an inverted
domestic corporation under subsection (b).
(b) INVERTED DOMESTIC CORPORATION.—For purposes of this
section, a foreign incorporated entity shall be treated as an inverted
domestic corporation if, pursuant to a plan (or a series of related
transactions)—