IB 
House Calendar No. 230 
109TH CONGRESS 
2D SESSION 
H. R. 5414 
[Report No. 109–663] 
To enact certain laws relating to public contracts as title 41, United States 
Code, ‘‘Public Contracts’’. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 17, 2006 
Mr. SENSENBRENNER (for himself and Mr. CONYERS) introduced the 
following bill; which was referred to the Committee on the Judiciary 
SEPTEMBER 15, 2006 
Referred to the House Calendar and ordered to be printed 
A BILL 
To enact certain laws relating to public contracts as title 
41, United States Code, ‘‘Public Contracts’’. 
Be it enacted by the Senate and House of Representatives of the United 
States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1.
Table of contents. 
Sec. 2.
Purpose; conformity with original intent. 
Sec. 3.
Enactment of Title 41, United States Code. 
Sec. 4.
Conforming amendment. 
Sec. 5.
Conforming cross-references. 
Sec. 6.
Technical amendments. 
Sec. 7.
Transitional and savings provisions. 
Sec. 8.
Repeals. 
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SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT. 
(a) PURPOSE.—The purpose of this Act is to enact certain laws relating 
to public contracts as title 41, United States Code, ‘‘Public Contracts’’. 
(b) CONFORMITY WITH ORIGINAL INTENT.—In the codification of laws 
by this Act, the intent is to conform to the understood policy, intent, and 
purpose of Congress in the original enactments, with such amendments and 
corrections as will remove ambiguities, contradictions, and other imperfec-
tions, in accordance with section 205(c)(1) of House Resolution No. 988, 
93d Congress, as enacted into law by Public Law 93–554 (2 U.S.C. 
285b(1)). 
SEC. 3. ENACTMENT OF TITLE 41, UNITED STATES CODE. 
Certain general and permanent laws of the United States, related to pub-
lic contracts, are revised, codified, and enacted as title 41, United States 
Code, ‘‘Public Contracts’’, as follows: 
TITLE 41—PUBLIC CONTRACTS 
Subtitle 
Sec. 
I. FEDERAL PROCUREMENT POLICY ................................................
101 
II. OTHER ADVERTISING AND CONTRACT PROVISIONS ..........
6101 
III. MISCELLANEOUS ....................................................................................
8101 
Subtitle I—Federal Procurement Policy 
PART A—GENERAL 
Chapter 
Sec. 
1. Definitions ...................................................................................................
101 
PART B—OFFICE OF FEDERAL PROCUREMENT POLICY 
11. Establishment of Office and Authority and Functions of Ad-
ministrator.
1101 
13. Acquisition Councils ................................................................................
1301 
15. Cost Accounting Standards ...................................................................
1501 
17. Agency Responsibilities and Procedures ........................................
1701 
19. Simplified Acquisition Procedures ....................................................
1901 
21. Restrictions on Obtaining and Disclosing Certain Informa-
tion.
2101 
23. Miscellaneous .............................................................................................
2301 
PART C—PROCUREMENT 
31. General ..........................................................................................................
3101 
33. Planning and Solicitation ......................................................................
3301 
35. Truthful Cost and Pricing Data ..........................................................
3501 
37. Awarding of Contracts ............................................................................
3701 
39. Specific Types of Contracts ..................................................................
3901 
41. Task and Delivery Order Contracts ..................................................
4101 
43. Allowable Costs ..........................................................................................
4301 
45. Contract Financing ..................................................................................
4501 
47. Miscellaneous .............................................................................................
4701 
PART A—GENERAL 
CHAPTER 1—DEFINITIONS 
SUBCHAPTER I—SUBTITLE DEFINITIONS 
Sec. 
101.
Administrator. 
102.
Commercial component. 
103.
Commercial item. 
104.
Commercially available off-the-shelf item. 
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105.
Component. 
106.
Federal Acquisition Regulation. 
107.
Full and open competition. 
108.
Item and item of supply. 
109.
Major system. 
110.
Nondevelopmental item. 
111.
Procurement. 
112.
Procurement system. 
113.
Responsible source. 
114.
Standards. 
115.
Supplies. 
116.
Technical data. 
SUBCHAPTER II—PART B DEFINITIONS 
131.
Acquisition. 
132.
Competitive procedures. 
133.
Executive agency. 
134.
Simplified acquisition threshold. 
SUBCHAPTER III—PART C DEFINITIONS 
151.
Agency head. 
152.
Competitive procedures. 
153.
Simplified acquisition threshold. 
SUBCHAPTER I—SUBTITLE DEFINITIONS 
§ 101. Administrator 
In this subtitle, the term ‘‘Administrator’’ means the Administrator for 
Federal Procurement Policy appointed under section 1102 of this title. 
§ 102. Commercial component 
In this subtitle, the term ‘‘commercial component’’ means a component 
that is a commercial item. 
§ 103. Commercial item 
In this subtitle, the term ‘‘commercial item’’ means— 
(1) an item, other than real property, that— 
(A) is of a type customarily used by the general public or by 
nongovernmental entities for purposes other than governmental 
purposes; and 
(B) has been sold, leased, or licensed, or offered for sale, lease, 
or license, to the general public; 
(2) an item that— 
(A) evolved from an item described in paragraph (1) through 
advances in technology or performance; and 
(B) is not yet available in the commercial marketplace but will 
be available in the commercial marketplace in time to satisfy the 
delivery requirements under a Federal Government solicitation; 
(3) an item that would satisfy the criteria in paragraph (1) or (2) 
were it not for— 
(A) modifications of a type customarily available in the commer-
cial marketplace; or 
(B) minor modifications made to meet Federal Government re-
quirements; 
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(4) any combination of items meeting the requirements of paragraph 
(1), (2), (3), or (5) that are of a type customarily combined and sold 
in combination to the general public; 
(5) installation services, maintenance services, repair services, train-
ing services, and other services if— 
(A) those services are procured for support of an item referred 
to in paragraph (1), (2), (3), or (4), regardless of whether the 
services are provided by the same source or at the same time as 
the item; and 
(B) the source of the services provides similar services contem-
poraneously to the general public under terms and conditions simi-
lar to those offered to the Federal Government; 
(6) services offered and sold competitively, in substantial quantities, 
in the commercial marketplace based on established catalog or market 
prices for specific tasks performed or specific outcomes to be achieved 
and under standard commercial terms and conditions; 
(7) any item, combination of items, or service referred to in para-
graphs (1) to (6) even though the item, combination of items, or service 
is transferred between or among separate divisions, subsidiaries, or af-
filiates of a contractor; or 
(8) a nondevelopmental item if the procuring agency determines, in 
accordance with conditions in the Federal Acquisition Regulation, that 
the item was developed exclusively at private expense and has been sold 
in substantial quantities, on a competitive basis, to multiple State and 
local governments. 
§ 104. Commercially available off-the-shelf item 
In this subtitle, the term ‘‘commercially available off-the-shelf item’’— 
(1) means an item that— 
(A) is a commercial item (as described in section 103(1) of this 
title); 
(B) is sold in substantial quantities in the commercial market-
place; and 
(C) is offered to the Federal Government, without modification, 
in the same form in which it is sold in the commercial market-
place; but 
(2) does not include bulk cargo, as defined in section 3 of the Ship-
ping Act of 1984 (46 App. U.S.C. 1702), such as agricultural products 
and petroleum products. 
§ 105. Component 
In this subtitle, the term ‘‘component’’ means an item supplied to the 
Federal Government as part of an end item or of another component. 
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§ 106. Federal Acquisition Regulation 
In this subtitle, the term ‘‘Federal Acquisition Regulation’’ means the 
regulation issued under section 1303(a)(1) of this title. 
§ 107. Full and open competition 
In this subtitle, the term ‘‘full and open competition’’, when used with 
respect to a procurement, means that all responsible sources are permitted 
to submit sealed bids or competitive proposals on the procurement. 
§ 108. Item and item of supply 
In this subtitle, the terms ‘‘item’’ and ‘‘item of supply’’— 
(1) mean an individual part, component, subassembly, assembly, or 
subsystem integral to a major system, and other property which may 
be replaced during the service life of the system, including spare parts 
and replenishment spare parts; but 
(2) do not include packaging or labeling associated with shipment or 
identification of an item. 
§ 109. Major system 
(a) IN GENERAL.—In this subtitle, the term ‘‘major system’’ means a 
combination of elements that will function together to produce the capabili-
ties required to fulfill a mission need. These elements may include hardware, 
equipment, software, or a combination of hardware, equipment, and soft-
ware, but do not include construction or other improvements to real prop-
erty. 
(b) SYSTEM DEEMED TO BE MAJOR SYSTEM.—A system is deemed to 
be a major system if— 
(1) the Department of Defense is responsible for the system and the 
total expenditures for research, development, testing, and evaluation for 
the system are estimated to exceed $75,000,000 (based on fiscal year 
1980 constant dollars) or the eventual total expenditure for procure-
ment exceeds $300,000,000 (based on fiscal year 1980 constant dol-
lars); 
(2) a civilian agency is responsible for the system and total expendi-
tures for the system are estimated to exceed the greater of $750,000 
(based on fiscal year 1980 constant dollars) or the dollar threshold for 
a major system established by the agency pursuant to Office of Man-
agement and Budget (OMB) Circular A–109, entitled ‘‘Major Systems 
Acquisitions’’; or 
(3) the head of the agency responsible for the system designates the 
system a major system. 
§ 110. Nondevelopmental item 
In this subtitle, the term ‘‘nondevelopmental item’’ means— 
(1) a commercial item; 
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(2) a previously developed item of supply that is in use by a depart-
ment or agency of the Federal Government, a State or local govern-
ment, or a foreign government with which the United States has a mu-
tual defense cooperation agreement; 
(3) an item of supply described in paragraph (1) or (2) that requires 
only minor modification or modification of the type customarily avail-
able in the commercial marketplace to meet the requirements of the 
procuring department or agency; or 
(4) an item of supply currently being produced that does not meet 
the requirements of paragraph (1), (2), or (3) solely because the item 
is not yet in use. 
§ 111. Procurement 
In this subtitle, the term ‘‘procurement’’ includes all stages of the process 
of acquiring property or services, beginning with the process for determining 
a need for property or services and ending with contract completion and 
closeout. 
§ 112. Procurement system 
In this subtitle, the term ‘‘procurement system’’ means the integration of 
the procurement process, the professional development of procurement per-
sonnel, and the management structure for carrying out the procurement 
function. 
§ 113. Responsible source 
In this subtitle, the term ‘‘responsible source’’ means a prospective con-
tractor that— 
(1) has adequate financial resources to perform the contract or the 
ability to obtain those resources; 
(2) is able to comply with the required or proposed delivery or per-
formance schedule, taking into consideration all existing commercial 
and Government business commitments; 
(3) has a satisfactory performance record; 
(4) has a satisfactory record of integrity and business ethics; 
(5) has the necessary organization, experience, accounting and oper-
ational controls, and technical skills, or the ability to obtain the organi-
zation, experience, controls, and skills; 
(6) has the necessary production, construction, and technical equip-
ment and facilities, or the ability to obtain the equipment and facilities; 
and 
(7) is otherwise qualified and eligible to receive an award under ap-
plicable laws and regulations. 
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§ 114. Standards 
In this subtitle, the term ‘‘standards’’ means the criteria for determining 
the effectiveness of the procurement system by measuring the performance 
of the various elements of the system. 
§ 115. Supplies 
In this subtitle, the term ‘‘supplies’’— 
(1) means an individual part, component, subassembly, assembly, or 
subsystem integral to a major system, and other property which may 
be replaced during the service life of the system, including spare parts 
and replenishment spare parts; but 
(2) does not include packaging or labeling associated with shipment 
or identification of an item. 
§ 116. Technical data 
In this subtitle, the term ‘‘technical data’’— 
(1) means recorded information (regardless of the form or method 
of the recording) of a scientific or technical nature (including computer 
software documentation) relating to supplies procured by an agency; 
but 
(2) does not include computer software or financial, administrative, 
cost or pricing, or management data or other information incidental to 
contract administration. 
SUBCHAPTER II—PART B DEFINITIONS 
§ 131. Acquisition 
In part B, the term ‘‘acquisition’’— 
(1) means the process of acquiring, with appropriated amounts, by 
contract for purchase or lease, property or services (including construc-
tion) that support the missions and goals of an executive agency, from 
the point at which the requirements of the executive agency are estab-
lished in consultation with the chief acquisition officer of the executive 
agency; and 
(2) includes— 
(A) the process of acquiring property or services that are al-
ready in existence, or that must be created, developed, dem-
onstrated, and evaluated; 
(B) the description of requirements to satisfy agency needs; 
(C) solicitation and selection of sources; 
(D) award of contracts; 
(E) contract performance; 
(F) contract financing; 
(G) management and measurement of contract performance 
through final delivery and payment; and 
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(H) technical and management functions directly related to the 
process of fulfilling agency requirements by contract. 
§ 132. Competitive procedures 
In part B, the term ‘‘competitive procedures’’ means procedures under 
which an agency enters into a contract pursuant to full and open competi-
tion. 
§ 133. Executive agency 
In part B, the term ‘‘executive agency’’ means— 
(1) an executive department specified in section 101 of title 5; 
(2) a military department specified in section 102 of title 5; 
(3) an independent establishment as defined in section 104(1) of title 
5; and 
(4) a wholly owned Government corporation fully subject to chapter 
91 of title 31. 
§ 134. Simplified acquisition threshold 
In part B, the term ‘‘simplified acquisition threshold’’ means $100,000. 
SUBCHAPTER III—PART C DEFINITIONS 
§ 151. Agency head 
In part C, the term ‘‘agency head’’ means the head or any assistant head 
of an executive agency, and may at the option of the Administrator of Gen-
eral Services include the chief official of any principal organizational unit 
of the General Services Administration. 
§ 152. Competitive procedures 
In part C, the term ‘‘competitive procedures’’ means procedures under 
which an executive agency enters into a contract pursuant to full and open 
competition. The term also includes— 
(1) procurement of architectural or engineering services conducted in 
accordance with chapter 11 of title 40; 
(2) the competitive selection of basic research proposals resulting 
from a general solicitation and the peer review or scientific review (as 
appropriate) of those proposals; 
(3) the procedures established by the Administrator of General Serv-
ices for the multiple awards schedule program of the General Services 
Administration if— 
(A) participation in the program has been open to all respon-
sible sources; and 
(B) orders and contracts under those procedures result in the 
lowest overall cost alternative to meet the needs of the Federal 
Government; 
(4) procurements conducted in furtherance of section 15 of the Small 
Business Act (15 U.S.C. 644) as long as all responsible business con-
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cerns that are entitled to submit offers for those procurements are per-
mitted to compete; and 
(5) a competitive selection of research proposals resulting from a 
general solicitation and peer review or scientific review (as appropriate) 
solicited pursuant to section 9 of that Act (15 U.S.C. 638). 
§ 153. Simplified acquisition threshold 
(1) IN GENERAL.—In part C, the term ‘‘simplified acquisition threshold’’ 
has the meaning provided that term in section 134 of this title, except that, 
in the case of a contract to be awarded and performed, or purchase to be 
made, outside the United States in support of a contingency operation or 
a humanitarian or peacekeeping operation, the term means an amount equal 
to two times the amount specified for that term in section 134 of this title. 
(2) SPECIFIC
DEFINITIONS
RELATING
TO
SIMPLIFIED
ACQUISITION 
THRESHOLD.—In paragraph (1)— 
(A) CONTINGENCY OPERATION.—The term ‘‘contingency operation’’ 
has the meaning given that term in section 101(a) of title 10. 
(B) HUMANITARIAN OR PEACEKEEPING OPERATION.—The term ‘‘hu-
manitarian or peacekeeping operation’’ means a military operation in 
support of the provision of humanitarian or foreign disaster assistance 
or in support of a peacekeeping operation under chapter VI or VII of 
the Charter of the United Nations. The term does not include routine 
training, force rotation, or stationing. 
PART B—OFFICE OF FEDERAL PROCUREMENT POLICY 
CHAPTER 11—ESTABLISHMENT OF OFFICE AND 
AUTHORITY AND FUNCTIONS OF ADMINISTRATOR 
SUBCHAPTER I—GENERAL 
Sec. 
1101.
Office of Federal Procurement Policy. 
1102.
Administrator. 
SUBCHAPTER II—AUTHORITY AND FUNCTIONS OF THE ADMINISTRATOR 
1121.
General authority. 
1122.
Functions. 
1123.
Small business concerns. 
1124.
Tests of innovative procurement methods and procedures. 
1125.
Recipients of Federal grants or assistance. 
1126.
Policy regarding consideration of contractor past performance. 
1127.
Determining benchmark compensation amount. 
1128.
Maintaining necessary capability with respect to acquisition of architectural and engi-
neering services. 
1129.
Center of excellence in contracting for services. 
1130.
Effect of part on other law. 
1131.
Annual report. 
SUBCHAPTER I—GENERAL 
§ 1101. Office of Federal Procurement Policy 
(a) ORGANIZATION.—There is an Office of Federal Procurement Policy 
in the Office of Management and Budget. 
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