(A) $250,000 in the case of a contract to be awarded and per-
formed, or purchase to be made, in the United States; and 
(B) $1,000,000 in the case of a contract to be awarded and per-
formed, or purchase to be made, outside the United States; and 
(3) the $5,000,000 limitation in sections 1901(a)(2) and 3305(a)(2) 
of this title and section 2304(g)(1)(B) of title 10 is deemed to be 
$10,000,000. 
(c) AUTHORITY TO TREAT PROPERTY
OR SERVICE
AS COMMERCIAL 
ITEM.— 
(1) IN GENERAL.—The head of an executive agency carrying out a 
procurement of property or a service to which this section applies under 
subsection (a)(2) may treat the property or service as a commercial 
item for the purpose of carrying out the procurement. 
(2) CERTAIN CONTRACTS NOT EXEMPT FROM STANDARDS OR RE-
QUIREMENTS.—A contract in an amount of more than $15,000,000 
that is awarded on a sole source basis for an item or service treated 
as a commercial item under paragraph (1) is not exempt from— 
(A) cost accounting standards prescribed under section 1502 of 
this title; or 
(B) cost or pricing data requirements (commonly referred to as 
truth in negotiating) under chapter 35 of this title and section 
2306a of title 10. 
§ 1904. Certain transactions for defense against attack 
(a) AUTHORITY.— 
(1) IN GENERAL.—The head of an executive agency that engages in 
basic research, applied research, advanced research, and development 
projects that are necessary to the responsibilities of the executive agen-
cy in the field of research and development and have the potential to 
facilitate defense against or recovery from terrorism or nuclear, biologi-
cal, chemical, or radiological attack may exercise the same authority 
(subject to the same restrictions and conditions) with respect to the re-
search and projects as the Secretary of Defense may exercise under 
section 2371 of title 10, except for subsections (b) and (f) of section 
2371. 
(2) PROTOTYPE PROJECTS.—The head of an executive agency, under 
the authority of paragraph (1), may carry out prototype projects that 
meet the requirements of paragraph (1) in accordance with the require-
ments 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, 10 U.S.C. 2371 note), including 
that, to the maximum extent practicable, competitive procedures shall 
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be used when entering into agreements to carry out projects under sec-
tion 845(a) of that Act and that the period of authority to carry out 
projects under section 845(a) of that Act terminates as provided in sec-
tion 845(i) of that Act. 
(3) APPLICATION OF REQUIREMENTS AND CONDITIONS.—In applying 
the requirements and conditions of section 845 of that Act under this 
subsection— 
(A) section 845(c) of that Act shall apply with respect to proto-
type projects carried out under paragraph (2); and 
(B) the Director of the Office of Management and Budget shall 
perform the functions of the Secretary of Defense under section 
845(d) of that Act. 
(4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES.— 
(A) OFFICE OF MANAGEMENT AND BUDGET.—The head of an 
executive agency may exercise authority under this subsection for 
a project only if authorized by the Director of the Office of Man-
agement and Budget. 
(B) DEPARTMENT OF HOMELAND SECURITY.—Authority under 
this subsection does not apply to the Secretary of Homeland Secu-
rity while section 831 of the Homeland Security Act of 2002 (6 
U.S.C. 391) is in effect. 
(b) REGULATIONS.—The Director of the Office of Management and 
Budget shall prescribe regulations to carry out this section. No transaction 
may be conducted under the authority of this section before the regulations 
take effect. 
(c) ANNUAL REPORT.—The annual report of the head of an executive 
agency that is required under section 2371(h) of title 10, as applied to the 
head of the executive agency by subsection (a), shall be submitted to the 
Committee on Homeland Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government Reform of the House of 
Representatives. 
(d) TERMINATION OF AUTHORITY.—The authority to carry out trans-
actions under subsection (a) terminates on September 30, 2008. 
§ 1905. List of laws inapplicable to contracts or subcontracts 
not greater than simplified acquisition threshold 
(a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning 
given that term in section 1301 of this title. 
(b) INCLUSION IN FEDERAL ACQUISITION REGULATION.— 
(1) IN GENERAL.—The Federal Acquisition Regulation shall include 
a list of provisions of law that are inapplicable to contracts or sub-
contracts in amounts not greater than the simplified acquisition thresh-
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old. A provision of law properly included on the list pursuant to para-
graph (2) does not apply to contracts or subcontracts in amounts not 
greater than the simplified acquisition threshold that are made by an 
executive agency. This section does not render a provision of law not 
included on the list inapplicable to contracts and subcontracts in 
amounts not greater than the simplified acquisition threshold. 
(2) LAWS ENACTED AFTER OCTOBER 13, 1994.—A provision of law 
described in subsection (c) that is enacted after October 13, 1994, shall 
be included on the list of inapplicable provisions of laws required by 
paragraph (1) unless the Council makes a written determination that 
it would not be in the best interest of the Federal Government to ex-
empt contracts or subcontracts in amounts not greater than the sim-
plified acquisition threshold from the applicability of the provision. 
(c) COVERED LAW.—A provision of law referred to in subsection (b)(2) 
is a provision of law that the Council determines sets forth policies, proce-
dures, requirements, or restrictions for the procurement of property or serv-
ices by the Federal Government, except for a provision of law that— 
(1) provides for criminal or civil penalties; or 
(2) specifically refers to this section and provides that, notwith-
standing this section, it shall be applicable to contracts or subcontracts 
in amounts not greater than the simplified acquisition threshold. 
(d) PETITION.—A person may petition the Administrator to take appro-
priate action when a provision of law described in subsection (c) is not in-
cluded on the list of inapplicable provisions of law as required by subsection 
(b) and the Council has not made a written determination pursuant to sub-
section (b)(2). The Administrator shall revise the Federal Acquisition Regu-
lation to include the provision on the list of inapplicable provisions of law 
unless the Council makes a determination pursuant to subsection (b)(2) 
within 60 days after the petition is received. 
§ 1906. List of laws inapplicable to procurements of commer-
cial items 
(a) DEFINITION.—In this section, the term ‘‘Council’’ has the meaning 
given that term in section 1301 of this title. 
(b) CONTRACTS.— 
(1) INCLUSION IN FEDERAL ACQUISITION REGULATION.—The Fed-
eral Acquisition Regulation shall include a list of provisions of law that 
are inapplicable to contracts for the procurement of commercial items. 
A provision of law properly included on the list pursuant to paragraph 
(2) does not apply to purchases of commercial items by an executive 
agency. This section does not render a provision of law not included 
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