435 
to section 8(b)(1) of the Contract Disputes Act of 1978 
(41 U.S.C. 607). 
‘‘(3) The term ‘Board judge’ means a member of 
the Defense Board or the Civilian Board, as the case 
may be. 
‘‘(4) The term ‘Chairman’ means the Chairman 
of the Defense Board or the Civilian Board, as the 
case may be. 
‘‘(5) The term ‘Board concerned’ means— 
‘‘(A) the Defense Board with respect to mat-
ters within its jurisdiction; and 
‘‘(B) the Civilian Board with respect to 
matters within its jurisdiction. 
‘‘(6) The term ‘executive agency’— 
‘‘(A) with respect to contract disputes under 
the jurisdiction of the Defense Board, means the 
Department of Defense, the Department of the 
Army, the Department of the Navy, the Depart-
ment of the Air Force, or the National Aero-
nautics and Space Administration; and 
‘‘(B) with respect to contract disputes under 
the jurisdiction of the Civilian Board, has the 
meaning given by section 4(1) of this Act except 
that the term does not include the Department of 
Defense, the Department of the Army, the De-
436 
partment of the Navy, the Department of the Air 
Force, the National Aeronautics and Space Ad-
ministration, and the Tennessee Valley Author-
ity.’’. 
(b) CONFORMING AMENDMENTS.—The Office of Fed-
eral Procurement Policy Act (41 U.S.C. 401 et seq.) is fur-
ther amended— 
(1) by inserting the following before section 1: 
‘‘TITLE 
I—FEDERAL 
PROCURE-
MENT POLICY GENERALLY’’; 
and 
(2) in section 4, by striking out ‘‘As used in this 
Act:’’ and inserting in lieu thereof ‘‘Except as other-
wise specifically provided, as used in this Act:’’. 
Subtitle B—Establishment of Civil-
ian and Defense Boards of Con-
tract Appeals 
SEC. 1421. ESTABLISHMENT. 
(a) DEFENSE BOARD.—Subsection (a)(1) of section 8 
of the Contract Disputes Act of 1978 (41 U.S.C. 607) is 
amended to read as follows: 
‘‘(a)(1) There is established in the Department of De-
fense a board of contract appeals to be known as the Depart-
ment of Defense Board of Contract Appeals.’’.
437 
(b) CIVILIAN BOARD.—Subsection (b)(1) of section 8 
of the Contract Disputes Act of 1978 (41 U.S.C. 607) is 
amended to read as follows: 
‘‘(b)(1) There is established in the General Services Ad-
ministration a board of contract appeals to be known as 
the Civilian Board of Contract Appeals.’’. 
SEC. 1422. MEMBERSHIP. 
The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.), as amended by section 1411, is further 
amended by adding at the end the following: 
‘‘SEC. 202. MEMBERSHIP. 
‘‘(a) APPOINTMENT.—(1)(A) The Defense Board shall 
consist of judges appointed by the Secretary of Defense from 
a register of applicants maintained by the Defense Board, 
in accordance with rules issued by the Defense Board for 
establishing and maintaining a register of eligible appli-
cants and selecting Defense Board judges. The Secretary 
shall appoint a judge without regard to political affiliation 
and solely on the basis of the professional qualifications re-
quired to perform the duties and responsibilities of a De-
fense Board judge. 
‘‘(B) The Civilian Board shall consist of judges ap-
pointed by the Administrator for Federal Procurement Pol-
icy from a register of applicants maintained by the Admin-
istrator, in accordance with rules issued by the Adminis-
438 
trator for establishing and maintaining a register of eligible 
applicants and selecting Civilian Board judges. The Ad-
ministrator shall appoint a judge without regard to polit-
ical affiliation and solely on the basis of the professional 
qualifications required to perform the duties and respon-
sibilities of a Civilian Board judge. 
‘‘(2) The members of the Defense Board and the Civil-
ian Board shall be selected and appointed to serve in the 
same manner as administrative law judges appointed pur-
suant to section 3105 of title 5, United States Code, with 
an additional requirement that such members shall have 
had not fewer than five years of experience in public con-
tract law. 
‘‘(3) Notwithstanding paragraph (2) and subject to 
subsection (b), the following persons shall serve as Board 
judges: 
‘‘(A) For the Defense Board, any full-time mem-
ber of the Armed Services Board of Contract Appeals 
serving as such on the day before the effective date of 
this title. 
‘‘(B) For the Civilian Board, any full-time mem-
ber of any agency board of contract appeals other 
than the Armed Services Board of Contract Appeals, 
the Postal Service Board of Contract Appeals, and the 
board of contract appeals of the Tennessee Valley Au-
439 
thority serving as such on the day before the effective 
date of this title. 
‘‘(b) REMOVAL.—Members of the Defense Board and 
the Civilian Board shall be subject to removal in the same 
manner as administrative law judges, as provided in sec-
tion 7521 of title 5, United States Code. 
‘‘(c) COMPENSATION.—Compensation for the Chair-
man of the Defense Board and the Chairman of the Civilian 
Board and all other members of each Board shall be deter-
mined under section 5372a of title 5, United States Code.’’. 
SEC. 1423. CHAIRMEN. 
The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.), as amended by section 1422, is further 
amended by adding at the end the following: 
‘‘SEC. 203. CHAIRMEN. 
‘‘(a) DESIGNATION.—(1)(A) The Chairman of the De-
fense Board shall be designated by the Secretary of Defense 
to serve for a term of five years. The Secretary shall select 
the Chairman from among sitting judges each of whom has 
had at least five years of service as a member of the Armed 
Services Board of Contract Appeals. 
‘‘(B) The Chairman of the Civilian Board shall be des-
ignated by the Administrator for Federal Procurement Pol-
icy to serve for a term of five years. The Administrator shall 
select the Chairman from among sitting judges each of
440 
whom has had at least five years of service as a member 
of an agency board of contract appeals other than the 
Armed Services Board of Contract Appeals. 
‘‘(2) A Chairman of a Board may continue to serve 
after the expiration of the Chairman’s term until a suc-
cessor has taken office. A Chairman may be reappointed 
any number of times. 
‘‘(b) RESPONSIBILITIES.—The Chairman of the De-
fense Board or the Civilian Board, as the case may be, shall 
be responsible on behalf of the Board for the executive and 
administrative operation of the Board, including functions 
of the Board with respect to the following: 
‘‘(1) The selection, appointment, and fixing of 
the compensation of such personnel, pursuant to part 
III of title 5, United States Code, as the Chairman 
considers necessary or appropriate, including a Clerk 
of the Board, a General Counsel, and clerical and 
legal assistance for Board judges. 
‘‘(2) The supervision of personnel employed by or 
assigned to the Board, and the distribution of work 
among such personnel. 
‘‘(3) The operation of an Office of the Clerk of 
the Board, including the receipt of all filings made 
with the Board, the assignment of cases, and the 
maintenance of all records of the Board.
441 
‘‘(4) The prescription of such rules and regula-
tions as the Chairman considers necessary or appro-
priate for the administration and management of the 
Board. 
‘‘(c) VICE CHAIRMEN.—The Chairman of the Defense 
Board or the Civilian Board, as the case may be, may des-
ignate up to two other Board judges as Vice Chairmen. The 
Vice Chairmen, in the order designated by the Chairman, 
shall act in the place and stead of the Chairman during 
the absence of the Chairman.’’. 
SEC. 1424. RULEMAKING AUTHORITY. 
The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.), as amended by section 1423, is further 
amended by adding at the end the following: 
‘‘SEC. 204. RULEMAKING AUTHORITY. 
‘‘Except as provided by section 1452 of the National 
Defense Authorization Act for Fiscal Year 2006, the Chair-
man of the Defense Board and the Chairman of the Civilian 
Board, in consultation with the Administrator for Federal 
Procurement Policy, shall jointly issue and maintain— 
‘‘(1) such procedural rules and regulations as are 
necessary to the exercise of the functions of the Boards 
under section 211; and 
‘‘(2) statements of policy of general applicability 
with respect to such functions.’’.
442 
SEC. 1425. AUTHORIZATION OF APPROPRIATIONS. 
The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.), as amended by section 1424, is further 
amended by adding at the end the following: 
‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated for fiscal 
year 2006 and each succeeding fiscal year such sums as 
may be necessary to carry out the provisions of this title. 
Funds for the activities of each Board shall be separately 
appropriated for such purpose. Funds appropriate pursu-
ant to this section shall remain available until expended.’’. 
Subtitle C—Functions of Defense 
and Civilian Boards of Contract 
Appeals 
SEC. 1431. CONTRACT DISPUTES. 
The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.), as amended by section 1425, is further 
amended by adding at the end the following: 
‘‘Subtitle B—Functions of the De-
fense and Civilian Boards of 
Contract Appeals 
‘‘SEC. 211. CONTRACT DISPUTES. 
‘‘The Defense Board shall have jurisdiction as provided 
by section 8(a)(1) of the Contract Disputes Act of 1978 (41 
U.S.C. 607(a)). The Civilian Board shall have jurisdiction
443 
as provided by section 8(b)(1) of such Act (41 U.S.C. 
607(b)).’’. 
SEC. 1432. ENHANCED ACCESS FOR SMALL BUSINESS. 
Section 9(a) of the Contract Disputes Act of 1978 (41 
U.S.C. 608) is amended by striking out the period at the 
end of the first sentence and inserting the following: ‘‘or, 
in the case of a small business concern (as defined in the 
Small Business Act and regulations under that Act), 
$150,000 or less.’’. 
SEC. 1433. APPLICABILITY TO CERTAIN CONTRACTS. 
The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.), as amended by section 1431, is further 
amended by adding at the end the following: 
‘‘SEC. 212. APPLICABILITY TO CERTAIN CONTRACTS. 
‘‘(a) CONTRACTS AT OR BELOW THE SIMPLIFIED AC-
QUISITION THRESHOLD.—Notwithstanding section 33 of 
this Act, the authority conferred on the Defense Board and 
the Civilian Board by this title is applicable to contracts 
in amounts not greater than the simplified acquisition 
threshold. 
‘‘(b) CONTRACTS FOR COMMERCIAL ITEMS.—Notwith-
standing section 34 of this Act, the authority conferred on 
the Defense Board and the Civilian Board by this title is 
applicable to contracts for the procurement of commercial 
items.’’.
444 
Subtitle D—Transfers and Transi-
tion, Savings, and Conforming 
Provisions 
SEC. 1441. TRANSFER AND ALLOCATION OF APPROPRIA-
TIONS AND PERSONNEL. 
(a) TRANSFERS.— 
(1) ARMED SERVICES BOARD OF CONTRACT AP-
PEALS.—The personnel employed in connection with, 
and the assets, liabilities, contracts, property, records, 
and unexpended balance of appropriations, authoriza-
tions, allocations, and other funds employed, held, 
used, arising from, available to, or to be made avail-
able in connection with the functions vested by law in 
the Armed Services Board of Contract Appeals estab-
lished pursuant to section 8 of the Contract Disputes 
Act of 1978 (41 U.S.C. 607) (as in effect on the day 
before the effective date described in section 1451), 
shall be transferred to the Department of Defense 
Board of Contract Appeals for appropriate allocation 
by the Chairman of that Board. 
(2) OTHER BOARDS OF CONTRACTS APPEALS.— 
The personnel employed in connection with, and the 
assets, liabilities, contracts, property, records, and un-
expended balance of appropriations, authorizations, 
allocations, and other funds employed, held, used,
445 
arising from, available to, or to be made available in 
connection with the functions vested by law in the 
boards of contract appeals established pursuant to sec-
tion 8 of the Contract Disputes Act of 1978 (41 
U.S.C. 607) (as in effect on the day before the effective 
date described in section 1451) other than the Armed 
Services Board of Contract Appeals, the board of con-
tract appeals of the Tennessee Valley Authority, and 
the Postal Service Board of Contract Appeals shall be 
transferred to the Civilian Board of Contract Appeals 
for appropriate allocation by the Chairman of that 
Board. 
(b) EFFECT ON PERSONNEL.—Personnel transferred 
pursuant to this subtitle shall not be separated or reduced 
in compensation for one year after such transfer, except for 
cause. 
(c) REGULATIONS.—(1) The Department of Defense 
Board of Contract Appeals and the Civilian Board of Con-
tract Appeals shall each prescribe regulations for the release 
of competing employees in a reduction in force that gives 
due effect to— 
(A) efficiency or performance ratings; 
(B) military preference; and 
(C) tenure of employment.
446 
(2) In prescribing the regulations, the Board concerned 
shall provide for military preference in the same manner 
as set forth in subchapter I of chapter 35 of title 5, United 
States Code. 
SEC. 1442. TERMINATIONS AND SAVINGS PROVISIONS. 
(a) TERMINATION
OF BOARDS
OF CONTRACT AP-
PEALS.—Effective on the effective date described in section 
1451, the boards of contract appeals established pursuant 
to section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 
607) (as in effect on the day before such effective date), other 
than the board of contract appeals of the Tennessee Valley 
Authority and the Postal Service Board of Contract Ap-
peals, shall terminate. 
(b) SAVINGS PROVISION
FOR CONTRACT DISPUTE 
MATTERS PENDING BEFORE BOARDS.—(1) This title and 
the amendments made by this title shall not affect any pro-
ceedings pending on the effective date described in section 
1451 before any board of contract appeals terminated by 
subsection (a). 
(2) In the case of any such proceedings pending before 
the Armed Services Board of Contract Appeals, the pro-
ceedings shall be continued by the Department of Defense 
Board of Contract Appeals, and orders which were issued 
in any such proceeding by the Armed Services Board of 
Contract Appeals shall continue in effect until modified,
447 
terminated, superseded, or revoked by the Department of 
Defense Board of Contract Appeals, by a court of competent 
jurisdiction, or by operation of law. 
(3) In the case of any such proceedings pending before 
an agency board of contract appeals other than the Armed 
Services Board of Contract Appeals or the board of contract 
appeals of the Tennessee Valley Authority, the proceedings 
shall be continued by the Civilian Board of Contract Ap-
peals, and orders which were issued in any such proceeding 
by the agency board shall continue in effect until modified, 
terminated, superseded, or revoked by the Civilian Board 
of Contract Appeals, by a court of competent jurisdiction, 
or by operation of law. 
SEC. 1443. CONTRACT DISPUTES AUTHORITY OF BOARDS. 
(a) Section 2 of the Contract Disputes Act of 1978 (41 
U.S.C. 601) is amended— 
(1) in paragraph (2), by striking out ‘‘, the 
United States Postal Service, and the Postal Rate 
Commission’’; 
(2) by redesignating paragraph (7) as para-
graph (9); 
(3) by amending paragraph (6) to read as fol-
lows: 
‘‘(6) the terms ‘agency board’ or ‘agency board of 
contract appeals’ mean—
448 
‘‘(1) the Department of Defense Board of 
Contract Appeals established under section 
8(a)(1) of this Act; 
‘‘(2) the Civilian Board of Contract Appeals 
established under section 8(b)(1) of this Act; 
‘‘(3) the board of contract appeals of the 
Tennessee Valley Authority; or 
‘‘(4) the Postal Service Board of Contract 
Appeals established under section 8(h) of this 
Act;’’; and 
(4) by inserting after paragraph (6) the fol-
lowing new paragraphs: 
‘‘(7) the term ‘Defense Board’ means the Depart-
ment of Defense Board of Contract Appeals estab-
lished under section 8(a)(1) of this Act; 
‘‘(8) the term ‘Civilian Board’ means the Civil-
ian Board of Contract Appeals established under sec-
tion 8(b)(1) of this Act; and’’. 
(b) Section 8 of the Contract Disputes Act of 1978 (41 
U.S.C. 607), as amended by section 1421, is further amend-
ed— 
(1) by striking out subsection (c); 
(2) in subsection (d)— 
(A) by striking out the first sentence and 
inserting in lieu thereof the following: ‘‘The De-
449 
fense Board shall have jurisdiction to decide any 
appeal from a decision of a contracting officer of 
the Department of Defense, the Department of 
the Army, the Department of the Navy, the De-
partment of the Air Force, or the National Aero-
nautics and Space Administration relative to a 
contract made by that department or agency. 
The Civilian Board shall have jurisdiction to de-
cide any appeal from a decision of a contracting 
officer of any executive agency (other than the 
Department of Defense, the Department of the 
Army, the Department of the Navy, the Depart-
ment of the Air Force, the National Aeronautics 
and Space Administration, the United States 
Postal Service, the Postal Rate Commission, or 
the Tennessee Valley Authority) relative to a con-
tract made by that agency. Each other agency 
board shall have jurisdiction to decide any ap-
peal from a decision of a contracting officer rel-
ative to a contract made by its agency.’’; and 
(B) in the second sentence, by striking out 
‘‘Claims Court’’ and inserting in lieu thereof 
‘‘Court of Federal Claims’’; 
(3) by striking out subsection (h) and inserting 
in lieu thereof the following:
450 
‘‘(h) There is established an agency board of contract 
appeals to be known as the ‘Postal Service Board of Con-
tract Appeals’. Such board shall have jurisdiction to decide 
any appeal from a decision of a contracting officer of the 
United States Postal Service or the Postal Rate Commission 
relative to a contract made by either agency. Such board 
shall consist of judges appointed by the Postmaster General 
who shall meet the qualifications of and serve in the same 
manner as judges of the Civilian Board of Contract Ap-
peals. This Act and title II of the Office of Federal Procure-
ment Policy Act shall apply to contract disputes before the 
Postal Service Board of Contract Appeals in the same man-
ner as they apply to contract disputes before the Civilian 
Board.’’; and 
(4) by striking out subsection (i). 
SEC. 1444. REFERENCES TO AGENCY BOARDS OF CONTRACT 
APPEALS. 
(a) DEFENSE BOARD.—Any reference to the Armed 
Services Board of Contract Appeals in any provision of law 
or in any rule, regulation, or other paper of the United 
States shall be treated as referring to the Department of 
Defense Board of Contract Appeals. 
(b) CIVILIAN BOARD.—Any reference to an agency 
board of contract appeals other than the Armed Services 
Board of Contract Appeals, the board of contract appeals
451 
of the Tennessee Valley Authority, or the Postal Service 
Board of Contract Appeals in any provision of law or in 
any rule, regulation, or other paper of the United States 
shall be treated as referring to the Civilian Board of Con-
tract Appeals. 
SEC. 1445. CONFORMING AMENDMENTS. 
(a) TITLE 5.—Section 5372a(a)(1) of title 5, United 
States Code, is amended by inserting after ‘‘of 1978’’ the 
following: ‘‘or a member of the Department of Defense 
Board of Contract Appeals or the Civilian Board of Con-
tract Appeals appointed under section 202 of the Office of 
Federal Procurement Policy Act’’. 
(b) OFFICE
OF
FEDERAL
PROCUREMENT
POLICY 
ACT.— 
(1) The table of contents for the Office of Federal 
Procurement Policy Act (contained in section 1(b)) is 
amended by inserting the following before the item re-
lating to section 1: 
‘‘TITLE I—FEDERAL PROCUREMENT POLICY GENERALLY’’. 
(2) The table of contents for the Office of Federal 
Procurement Policy Act (contained in section 1(b)) is 
amended by adding at the end the following: 
‘‘TITLE II—DISPUTE RESOLUTION 
‘‘Subtitle A—General provisions 
‘‘201. Definitions. 
‘‘202. Membership.
452 
‘‘203. Chairmen. 
‘‘204. Rulemaking authority. 
‘‘205. Authorization of appropriations. 
‘‘Subtitle B—Functions of the defense and civilian Boards of contract appeals 
‘‘211. Contract disputes. 
‘‘212. Applicability to certain contracts.’’. 
Subtitle E—Effective Date; Regula-
tions and Appointment of Chair-
men 
SEC. 1451. EFFECTIVE DATE. 
Title II of the Office of Federal Procurement Policy 
Act, as added by this title, and the amendments and repeals 
made by this title shall take effect 1 year after the date of 
the enactment of this Act. 
SEC. 1452. REGULATIONS. 
(a) REGULATIONS REGARDING CLAIMS.—Not later 
than 1 year after the date of the enactment of this Act, the 
Chairman of the Armed Services Board of Contract Appeals 
and the Chairman of the General Services Board of Con-
tract Appeals, in consultation with the Administrator for 
Federal Procurement Policy, shall jointly issue— 
(1) such procedural rules and regulations as are 
necessary to the exercise of the functions of the De-
partment of Defense Board of Contract Appeals and 
the Civilian Board of Contract Appeals under sec-
tions 211 of the Office of Federal Procurement Policy 
Act (as added by this title); and
453 
(2) statements of policy of general applicability 
with respect to such functions. 
(b) REGULATIONS
REGARDING
APPOINTMENT
OF 
JUDGES.—Not later than 1 year after the date of the enact-
ment of this Act— 
(1) the Chairman of the Armed Services Board 
of Contract Appeals shall issue rules governing the es-
tablishment and maintenance of a register of eligible 
applicants and the selection of judges for the Depart-
ment of Defense Board of Contract Appeals; and 
(2) the Administrator for Federal Procurement 
Policy shall issue rules governing the establishment 
and maintenance of a register of eligible applicants 
and the selection of judges for the Civilian Board of 
Contract Appeals. 
SEC. 1453. APPOINTMENT OF CHAIRMEN OF DEFENSE 
BOARD AND CIVILIAN BOARD. 
Notwithstanding section 1451, not later than 1 year 
after the date of the enactment of this Act— 
(1) the Secretary of Defense shall appoint the 
Chairman of the Department of Defense Board of 
Contract Appeals; and 
(2) the Administrator for Federal Procurement 
Policy shall appoint the Chairman of the Civilian 
Board of Contract Appeals.