I
104TH CONGRESS
1ST SESSION
H. R. 1670
To revise and streamline the acquisition laws of the Federal Government,
to reorganize the mechanisms for resolving Federal procurement disputes,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 18, 1995
Mr. CLINGER (for himself, Mr. SPENCE, Mr. HORN, Mr. ZELIFF, Mr. BLUTE,
Mr. DAVIS, Mr. SCARBOROUGH, Mr. LEWIS of California, Mr. TATE, Mr.
TIAHRT, Mr. FLANAGAN, Mr. BASS, and Mr. CHAMBLISS) introduced the
following bill; which was referred to the Committee on Government Re-
form and Oversight, and in addition to the Committees on National Secu-
rity and the Judiciary, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To revise and streamline the acquisition laws of the Federal
Government, to reorganize the mechanisms for resolving
Federal procurement disputes, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal Acquisition
Reform Act of 1995’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—COMPETITION
Sec. 101. Improvement of competition requirements.
Sec. 102. Definition relating to competition requirements.
Sec. 103. Contract solicitation amendments.
Sec. 104. Preaward debriefings.
Sec. 105. Contract types.
Sec. 106. Contractor performance.
TITLE II—COMMERCIAL ITEMS
Sec. 201. Commercial item exception to requirement for cost or pricing data
and information limitations.
Sec. 202. Application of simplified procedures to commercial items.
Sec. 203. Amendment to definition of commercial items.
Sec. 204. Inapplicability of cost accounting standards to contracts and sub-
contracts for commercial items.
TITLE III—ADDITIONAL REFORM PROVISIONS
Sec. 301. Government reliance on the private sector.
Sec. 302. Elimination of certain certification requirements.
Sec. 303. Amendment to commencement and expiration of authority to conduct
certain tests of procurement procedures.
Sec. 304. International competitiveness.
Sec. 305. Procurement integrity.
Sec. 306. Further acquisition streamlining provisions.
TITLE IV—STREAMLINING OF DISPUTE RESOLUTION
Subtitle A—General Provisions
Sec. 401. Definitions.
Subtitle B—Establishment of the United States Board of Contract Appeals
Sec. 411. Establishment.
Sec. 412. Membership.
Sec. 413. Chairman.
Sec. 414. Rulemaking authority.
Sec. 415. Litigation authority.
Sec. 416. Seal of Board.
Sec. 417. Authorization of appropriations.
Subtitle C—Functions of United States Board of Contract Appeals
Sec. 421. Alternative dispute resolution services.
Sec. 422. Alternative dispute resolution of disputes and protests submitted to
Board.
Sec. 423. Contract disputes.
Sec. 424. Protests.
Sec. 425. Applicability to contracts for commercial items.
Subtitle D—Repeal of Other Statutes Authorizing Administrative Protests
Sec. 431. Repeals.
Subtitle E—Transfers and Transitional, Savings, and Conforming Provisions
Sec. 441. Transfer and allocation of appropriations and personnel.
Sec. 442. Terminations and savings provisions.
Sec. 443. Contract dispute authority of Board.
Sec. 444. References to agency boards of contract appeals.
Sec. 445. Conforming amendments.
Subtitle F—Effective Date; Interim Appointment and Rules
Sec. 451. Effective date.
Sec. 452. Interim appointment.
Sec. 453. Interim rules.
TITLE V—EFFECTIVE DATES AND IMPLEMENTATION
Sec. 501. Effective date and applicability.
Sec. 502. Implementing regulations.
TITLE I—COMPETITION
SEC. 101. IMPROVEMENT OF COMPETITION REQUIRE-
MENTS.
(a) ARMED SERVICES ACQUISITIONS.—(1) Section
2304 of title 10, United States Code, is amended to read
as follows:
‘‘§ 2304. Contracts: competition requirements
‘‘(a) MAXIMUM PRACTICABLE COMPETITION.—Ex-
cept as provided in subsections (b), (c), and (e) and except
in the case of procurement procedures otherwise expressly
authorized by statute, the head of an agency in conducting
a procurement for property or services—
‘‘(1) shall obtain maximum practicable competi-
tion through the use of competitive procedures con-
sistent with the need to efficiently fulfill the Govern-
ment’s requirements in accordance with this chapter
and the Federal Acquisition Regulation; and
‘‘(2) shall use the competitive procedure or
combination of competitive procedures that is best
suited under the circumstances of the procurement.
‘‘(b) EXCLUSION
OF PARTICULAR SOURCE.—The
head of an agency may provide for the procurement of
property or services covered by this chapter using competi-
tive procedures but excluding a particular source in order
to establish or maintain an alternative source or sources
of supply for that property or service. The Federal Acqui-
sition Regulation shall set forth the circumstances under
which a particular source may be excluded pursuant to
this subsection.
‘‘(c) EXCLUSION OF CONCERNS OTHER THAN SMALL
BUSINESS CONCERNS AND CERTAIN OTHER ENTITIES.—
The head of an agency may provide for the procurement
of property or services covered by this section using com-
petitive procedures, but excluding concerns other than
small business concerns in furtherance of sections 9 and
15 of the Small Business Act (15 U.S.C. 638, 644) and
concerns other than small business concerns, historically
Black colleges and universities, and minority institutions
in furtherance of section 2323 of this title.
tent practicable consistent with the particular Government
requirement.
‘‘(f) CERTAIN CONTRACTS.—For the purposes of the
following laws, purchases or contracts awarded after using
procedures other than sealed-bid procedures shall be treat-
ed as if they were made with sealed-bid procedures:
‘‘(1) The Walsh-Healey Act (41 U.S.C. 35–45).
‘‘(2) The Act entitled ‘‘An Act relating to the
rate of wages for laborers and mechanics employed
on public buildings of the United States and the
District of Columbia by contractors and subcontrac-
tors, and for other purposes’’, approved March 3,
1931 (commonly referred to as the ‘‘Davis-Bacon
Act’’) (40 U.S.C. 276a–276a–5).’’.
(2) Chapter 137 of title 10, United States Code, is
amended by inserting before section 2305 a new section—
(A) the designation and heading for which is as
follows:
‘‘§ 2304f. Merit-based selection’’;
and
(B) the text of which consists of subsection (j)
of section 2304 of such title, as in effect on the day
before the date of the enactment of this Act, modi-
fied—
(i) by striking out the subsection designa-
tion and the subsection heading;
(ii) in paragraphs (2)(A), (3), and (4), by
striking out ‘‘subsection’’ and inserting in lieu
thereof ‘‘section’’ each place it appears;
(iii) in paragraph (2)(C), by striking out
‘‘paragraph (1)’’ and inserting in lieu thereof
‘‘subsection (a)’’;
(iv) by redesignating paragraphs (1), (2),
(3), and (4) as subsections (a), (b), (c), and
(d), respectively; and
(v) in subsection (b) (as so redesignated),
by redesignating subparagraphs (A), (B), and
(C) as paragraphs (1), (2), and (3), respec-
tively.
(3) The table of sections at the beginning of such
chapter is amended by inserting before the item relating
to section 2305 the following new item:
‘‘2304f. Merit-based selection.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section
303 of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253) is amended to read as fol-
lows:
‘‘SEC. 303. CONTRACTS: COMPETITION REQUIREMENTS.
‘‘(a) MAXIMUM PRACTICABLE COMPETITION.—Ex-
cept as provided in subsections (b), (c), and (e) and except
in the case of procurement procedures otherwise expressly
authorized by statute, an executive agency in conducting
a procurement for property or services—
‘‘(1) shall obtain maximum practicable competi-
tion through the use of competitive procedures con-
sistent with the need to efficiently fulfill the Govern-
ment’s requirements in accordance with this chapter
and the Federal Acquisition Regulation; and
‘‘(2) shall use the competitive procedure or
combination of competitive procedures that is best
suited under the circumstances of the procurement.
‘‘(b) EXCLUSION OF PARTICULAR SOURCE.—An ex-
ecutive agency may provide for the procurement of prop-
erty or services covered by this chapter using competitive
procedures but excluding a particular source in order to
establish or maintain an alternative source or sources of
supply for that property or service. The Federal Acquisi-
tion Regulation shall set forth the circumstances under
which a particular source may be excluded pursuant to
this subsection.
‘‘(c) EXCLUSION OF CONCERNS OTHER THAN SMALL
BUSINESS CONCERNS AND CERTAIN OTHER ENTITIES.—
An executive agency may provide for the procurement of
property or services covered by this section using competi-
tive procedures, but excluding concerns other than small
business concerns in furtherance of sections 9 and 15 of
the Small Business Act (15 U.S.C. 638, 644) and con-
cerns other than small business concerns, historically
Black colleges and universities, and minority institutions
in furtherance of section 7102 of the Federal Acquisition
Streamlining Act of 1994 (15 U.S.C. 644 note).
‘‘(d) PROCEDURES OTHER THAN COMPETITIVE PRO-
CEDURES.—Procedures other than competitive procedures
may be used for purchasing property and services only
when the use of competitive procedures is not feasible or
appropriate. Each procurement using procedures other
than competitive procedures (other than a procurement
for commercial items or a procurement in an amount not
greater than the simplified acquisition threshold) shall be
justified in writing and approved in accordance with the
Federal Acquisition Regulation.
‘‘(e) SIMPLIFIED PROCEDURES.—(1) In order to pro-
mote efficiency and economy in contracting and to avoid
unnecessary burdens for agencies and contractors, the
Federal Acquisition Regulation shall provide for special
simplified procedures for purchases of property and serv-
ices for amounts not greater than the simplified acquisi-
tion threshold.
‘‘(2)(A) The Administrator of General Services shall
prescribe regulations that provide special simplified proce-
dures for acquisitions of leasehold interests in real prop-
erty at rental rates that do not exceed the simplified acqui-
sition threshold.
‘‘(B) For purposes of subparagraph (A), the rental
rate or rates under a multiyear lease do not exceed the
simplified acquisition threshold if the average annual
amount of the rent payable for the period of the lease does
not exceed the simplified acquisition threshold.
‘‘(3) A proposed purchase or contract or for an
amount above the simplified acquisition threshold may not
be divided into several purchases or contracts for lesser
amounts in order to use the simplified procedures required
by paragraph (1).
‘‘(4) In using simplified procedures, an executive
agency shall ensure that competition is obtained to the ex-
tent practicable consistent with the particular Government
requirement.’’.
(2) Title III of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 251 et seq.) is
amended by inserting after section 303L a new section—
(A) the designation and heading for which is as
follows:
‘‘SEC. 303M. MERIT-BASED SELECTION.’’;
and
(B) the text of which consists of subsection (h)
of section 303 of such Act, as in effect on the day
before the date of the enactment of this Act, modi-
fied—
(i) by striking out the subsection designa-
tion and the subsection heading;
(ii) in paragraphs (2)(A), (3), and (4), by
striking out ‘‘subsection’’ and inserting in lieu
thereof ‘‘section’’ each place it appears;
(iii) in paragraph (2)(C), by striking out
‘‘paragraph (1)’’ and inserting in lieu thereof
‘‘subsection (a)’’;
(iv) by redesignating paragraphs (1), (2),
(3), and (4) as subsections (a), (b), (c), and
(d), respectively; and
(v) in subsection (b) (as so redesignated),
by redesignating subparagraphs (A), (B), and
(C) as paragraphs (1), (2), and (3), respec-
tively.
(3) The table of contents for the Federal Property
and Administrative Services Act of 1949 (contained in sec-
tion 1(b)) is amended—
(A) by striking out the item relating to section
303 and inserting in lieu thereof the following:
‘‘Sec. 303. Contracts: competition requirements.’’; and
(B) by inserting after the item relating to sec-
tion 303L the following new item:
‘‘Sec. 303M. Merit-based selection.’’.
(c) REVISIONS TO PROCUREMENT NOTICE PROVI-
SIONS.—Section 18 of the Office of Federal Procurement
Policy Act (41 U.S.C. 416) is amended—
(1) in subsection (a)—
(A) in subparagraph (B) of paragraph
(1)—
(i) by striking out ‘‘subsection (f)—’’
and all that follows through the end of the
subparagraph and inserting in lieu thereof
‘‘subsection (b); and’’; and
(ii) by inserting after ‘‘property or
services’’ the following: ‘‘for a price ex-
pected to exceed $10,000 but not to exceed
$25,000’’;
(B) by striking out paragraph (4); and
(C) by redesignating paragraphs (5) and
(6) as paragraphs (4) and (5), respectively; and
(2) in subsection (b)(4)—
(A) by striking out ‘‘all’’; and
(B) by striking out ‘‘(as appropriate)
which shall be considered by the agency’’.
(d) REPEAL OF DUPLICATIVE PROVISIONS.—Section
8 of the Small Business Act (15 U.S.C. 637) is amend-
ed—
(1) by striking out subsections (e), (f), (g), (h),
and (i); and
(2) by redesignating subsection (j) as sub-
section (e).
(e) EXECUTIVE
AGENCY
RESPONSIBILITIES.—(1)
Section 16 of the Office of Federal Procurement Policy
Act (41 U.S.C. 414) is amended—
(A) by striking out ‘‘achieve’’ in the matter pre-
ceding paragraph (1) and inserting in lieu thereof
‘‘promote’’; and
(B) by amending paragraph (1) to read as fol-
lows:
‘‘(1) to implement maximum practicable com-
petition in the procurement of property or services
by the executive agency by establishing policies, pro-
cedures, and practices that are consistent with the
need to efficiently fulfill the Government’s require-
ments;’’.
(2) Section 20 of such Act (41 U.S.C. 418) is amend-
ed in subsection (a)(2)(A) by striking out ‘‘serving in a
position authorized for such executive agency on the date
of enactment of the Competition in Contracting Act of
1984’’.
SEC. 102. DEFINITION RELATING TO COMPETITION RE-
QUIREMENTS.
(a) DEFINITION.—Paragraph (6) of section 4 of the
Office of Federal Procurement Policy Act (41 U.S.C. 403)
is amended to read as follows:
‘‘(6) The term ‘maximum practicable competi-
tion’, when used with respect to a procurement,
means that a maximum number of responsible or
verified sources (consistent with the particular Gov-
ernment requirement) are permitted to submit
sealed bids or competitive proposals on the procure-
ment.’’.
(b) CONFORMING AMENDMENTS.—
(1) OFFICE OF FEDERAL PROCUREMENT POL-
ICY ACT.—The Office of Federal Procurement Policy
Act is further amended—
(A) in section 4(5), by striking out ‘‘full
and open’’ and inserting ‘‘maximum prac-
ticable’’; and
(B) in section 20, by striking out ‘‘full and
open’’ and inserting in lieu thereof ‘‘maximum
practicable’’ each place it appears in subsection
(b)(1), 
subsection 
(b)(3)(A), 
subsection
(b)(4)(C), and subsection (c);
(2) TITLE 10.—Title 10, United States Code, is
amended—
(A) in section 2302(2), by striking out
‘‘pursuant to full and open competition’’ and in-
serting in lieu thereof ‘‘using maximum prac-
ticable competition’’;
(B) in section 2323(e)(3), by striking out
‘‘less than full and open’’ and inserting in lieu
thereof ‘‘procedures other than’’; and
(C) in each of the following sections, by
striking out ‘‘full and open’’ and inserting in
lieu thereof ‘‘maximum practicable’’:
(i) Section 2302(3).
(ii) Section 2305(a)(1)(A)(i).
(iii) Section 2305(a)(1)(A)(iii).
(iv) Section 2323(i)(3)(A).
(3) FEDERAL PROPERTY AND ADMINISTRATIVE
SERVICES ACT.—Title III of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C.
251 et seq.) is amended—
(A) in section 309(b), by striking out
‘‘pursuant to full and open competition’’ and in-
serting in lieu thereof ‘‘using maximum prac-
ticable competition’’; and
(B) in each of the following sections, by
striking out ‘‘full and open’’ and inserting in
lieu thereof ‘‘maximum practicable’’:
(i) Section 303A(a)(1)(A).
(ii) Section 303A(a)(1)(C).
(iii) Section 304B(a)(2)(B).
(iv) Section 309(c)(4).
(4) OTHER
LAWS.—(A) Section 7102 of the
Federal Acquisition Streamlining Act of 1994 (108
Stat. 3367; 15 U.S.C. 644 note) is amended in sub-
section (a)(1)(A) by striking out ‘‘less than full and
open competition’’ and inserting in lieu thereof ‘‘pro-
cedures other than competitive procedures’’.
(B) Section 15(l) of the Small Business Act (15
U.S.C. 644(l)) is amended in paragraph (1) and in
paragraph (2)(A) by striking out ‘‘full and open’’
and inserting in lieu thereof ‘‘maximum practicable’’
each place it appears.
SEC. 103. CONTRACT SOLICITATION AMENDMENTS.
(a) ARMED SERVICES ACQUISITIONS.—Section 2305
of title 10, United States Code, is amended—
(1) in subsection (a)(1)—
(A) by striking out subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B) and in that subparagraph by
striking out ‘‘subparagraphs (A) and (B)’’ and
inserting in lieu thereof ‘‘subparagraph (A)’’;
and
(2) in subsection (b)(4)(A)(i), by striking out
‘‘all’’ and inserting in lieu thereof ‘‘the’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section
303A of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253a) is amended—
(A) by striking out paragraph (2); and
(B) by redesignating paragraph (3) as para-
graph (2) and in that paragraph by striking out
‘‘paragraphs (1) and (2)’’ and inserting in lieu
thereof ‘‘paragraph (1)’’.
(2) Section 303B(d)(1)(A) of such Act (41 U.S.C.
253b) is amended by striking out ‘‘all’’ and inserting in
lieu thereof ‘‘the’’.
SEC. 104. PREAWARD DEBRIEFINGS.
(a) 
ARMED
SERVICES
ACQUISITIONS.—Section
2305(b) of title 10, United States Code, is amended—
(1) by striking out subparagraph (F) of para-
graph (5);
(2) by redesignating paragraph (6) as para-
graph (8); and
(3) by inserting after paragraph (5) the follow-
ing new paragraphs:
‘‘(6)(A) When the contracting officer excludes
an offeror submitting a competitive proposal from
the competitive range (or otherwise excludes such an
offeror from further consideration prior to the final
source selection decision), the excluded offeror may
request in writing, within three days after the date
on which the excluded offeror receives notice of its
exclusion, a debriefing prior to award. The contract-
ing officer shall make every effort to debrief the un-
successful offeror as soon as practicable and may
refuse the request for a debriefing if it is not in the
best interests of the Government to conduct a de-
briefing at that time.
‘‘(B) The contracting officer is required to de-
brief an excluded offeror in accordance with para-
graph (5) of this section only if that offeror re-
quested and was refused a preaward debriefing
under subparagraph (A) of this paragraph.
‘‘(C) The debriefing conducted under this sub-
section shall include—
‘‘(i) the executive agency’s evaluation of
the significant elements in the offeror’s offer;
‘‘(ii) a summary of the rationale for the
offeror’s exclusion; and
‘‘(iii) reasonable responses to relevant
questions posed by the debriefed offeror as to
whether source selection procedures set forth in
the solicitation, applicable regulations, and
other applicable authorities were followed by the
executive agency.
‘‘(D) The debriefing conducted pursuant to this
subsection may not disclose the number or identity
of other offerors and shall not disclose information
about the content, ranking, or evaluation of other
offerors’ proposals.
‘‘(7) The contracting officer shall include a
summary of any debriefing conducted under para-
graph (5) or (6) in the contract file.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B
of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 253b) is amended—
(1) by striking out paragraph (6) of subsection
(e);
(2) by redesignating subsections (f), (g), (h),
and (i) as subsections (h), (i), (j), and (k), respec-
tively; and
(3) by inserting after subsection (e) the follow-
ing new subsections:
‘‘(f)(1) When the contracting officer excludes an
offeror submitting a competitive proposal from the com-
petitive range (or otherwise excludes such an offeror from
further consideration prior to the final source selection de-
cision), the excluded offeror may request in writing, within
3 days after the date on which the excluded offeror re-
ceives notice of its exclusion, a debriefing prior to award.
The contracting officer shall make every effort to debrief
the unsuccessful offeror as soon as practicable and may
refuse the request for a debriefing if it is not in the best
interests of the Government to conduct a debriefing at
that time.
‘‘(2) The contracting officer is required to debrief an
excluded offeror in accordance with subsection (e) of this
section only if that offeror requested and was refused a
preaward debriefing under paragraph (1) of this sub-
section.
‘‘(3) The debriefing conducted under this subsection
shall include—
‘‘(A) the executive agency’s evaluation of the
significant elements in the offeror’s offer;
‘‘(B) a summary of the rationale for the
offeror’s exclusion; and
‘‘(C) reasonable responses to relevant questions
posed by the debriefed offeror as to whether source
selection procedures set forth in the solicitation, ap-
plicable regulations, and other applicable authorities
were followed by the executive agency.
‘‘(4) The debriefing conducted pursuant to this sub-
section may not disclose the number or identity of other
offerors and shall not disclose information about the con-
tent, ranking, or evaluation of other offerors’ proposals.
‘‘(g) The contracting officer shall include a summary
of the any debriefing conducted under subsection (e) or
(f) in the contract file.’’.
SEC. 105. CONTRACT TYPES.
(a) ARMED SERVICES ACQUISITIONS.—(1) Section
2306 of title 10, United States Code, is amended—
(A) by inserting before the period at the end of
subsection (a) the following: ‘‘, based on market con-
ditions, established commercial practice (if any) for
the product or service being acquired, and sound
business judgment’’;
(B) by striking out subsections (b), (d), (e), (f),
and (h); and
(C) by redesignating subsection (g) as sub-
section (b).
(2) The heading of such section is amended to read
as follows:
‘‘§ 2306. Contract types’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section
304 of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 254) is amended—
(A) by inserting before the period at the end of
the first sentence of subsection (a) the following: ‘‘,
based on market conditions, established commercial
practice (if any) for the product or service being ac-
quired, and sound business judgment’’; and
(B) by striking out ‘‘Every contract award’’ in
the second sentence of subsection (a) and all that
follows through the end of the section.
(2) The heading of such section is amended to read
as follows:
‘‘SEC. 304. CONTRACT TYPES.’’.
(c) CONFORMING
REPEALS.—(1) Sections 4540,
7212, and 9540 of title 10, United States Code, are re-
pealed.
(2) The table of sections at the beginning of chapter
433 of such title is amended by striking out the item relat-
ing to section 4540.
is amended by striking out the item relating to such sec-
tion.
SEC. 106. CONTRACTOR PERFORMANCE.
(a) REQUIREMENT FOR SYSTEM.—The Office of Fed-
eral Procurement Policy Act (41 U.S.C. 401 et seq.) is
amended by adding at the end the following new section:
‘‘SEC. 35. CONTRACTOR PERFORMANCE.
‘‘(a) VERIFICATION AUTHORIZED.—The Federal Ac-
quisition Regulation shall provide a contractor verification
system for the procurement of particular property or serv-
ices that are procured by executive agencies on a repetitive
basis. Under the system, the head of an executive agen-
cy—
‘‘(1) shall use competitive procedures to verify
contractors as eligible for contracts to furnish such
property or services; and
‘‘(2) shall award verifications on the basis of
the relative efficiency and effectiveness of the busi-
ness practices, level of quality, and demonstrated
contract performance of the responding contractors
with regard to the particular property or services.
‘‘(b) PROCUREMENT
FROM
VERIFIED
CONTRAC-
TORS.—The Federal Acquisition Regulation shall provide
procedures under which the head of an executive agency
may enter into a contract for a procurement of property
or services referred to in subsection (a) on the basis of
a competition among contractors verified with respect to
such property or services pursuant to that subsection.
‘‘(c) TERMINATION OF VERIFICATION.—The Federal
Acquisition Regulation shall provide procedures under
which the head of an executive agency—
‘‘(1) may provide for the termination of a ver-
ification awarded a contractor under this section
upon the expiration of a period specified by the head
of an executive agency; and
‘‘(2) may revoke a verification awarded a con-
tractor under this section upon a determination that
the quality of performance of the contractor does not
meet standards applied by the head of the executive
agency as of the time of the revocation decision.’’.
(b) REPEALS.—Section 2319 of title 10, United
States Code, is repealed. Section 303C of the Federal
Property and Administrative Services Act of 1949 (41
U.S.C. 253c) is repealed.
(c) CLERICAL AMENDMENTS.—(1) The table of con-
tents for the Office of Federal Procurement Policy Act
(contained in section 1(b)) is amended by adding at the
end the following new item:
‘‘Sec. 35. Contractor performance.’’.
(2) The table of sections at the beginning of chapter
137 of title 10, United States Code, is amended by strik-
ing out the item relating to section 2319.
(3) The table of contents for the Federal Property
and Administrative Services Act of 1949 (contained in sec-
tion 1(b)) is amended by striking out the item relating
to section 303C.
TITLE II—COMMERCIAL ITEMS
SEC. 201. COMMERCIAL ITEM EXCEPTION TO REQUIRE-
MENT FOR COST OR PRICING DATA AND IN-
FORMATION LIMITATIONS.
(a) ARMED
SERVICES
ACQUISITIONS.—(1) Sub-
sections (b), (c), and (d) of section 2306a of title 10,
United States Code, are amended to read as follows:
‘‘(b) EXCEPTIONS.—
‘‘(1) IN GENERAL.—Submission of cost or pric-
ing data shall not be required under subsection (a)
in the case of a contract, a subcontract, or modifica-
tion of a contract or subcontract—
‘‘(A) for which the price agreed upon is
based on—
‘‘(i) adequate price competition; or
‘‘(ii) prices set by law or regulation;
‘‘(B) for the acquisition of a commercial
item; or
‘‘(C) in an exceptional case when the head
of the procuring activity, without delegation, de-
termines that the requirements of this section
may be waived and justifies in writing the rea-
sons for such determination.
‘‘(2) MODIFICATIONS OF CONTRACTS AND SUB-
CONTRACTS FOR COMMERCIAL ITEMS.—In the case
of a modification of a contract or subcontract for a
commercial item that is not covered by the exception
on the submission of cost or pricing data in para-
graph (1)(A) or (1)(B), submission of cost or pricing
data shall not be required under subsection (a) if—
‘‘(A) the contract or subcontract being
modified is a contract or subcontract for which
submission of cost or pricing data may not be
required by reason of paragraph (1)(A) or
(1)(B); and
‘‘(B) the modification would not change
the contract or subcontract, as the case may be,
from a contract or subcontract for the acquisi-
tion of a commercial item to a contract or sub-
contract for the acquisition of an item other
than a commercial item.
‘‘(c) AUTHORITY TO REQUIRE COST OR PRICING
DATA ON BELOW-THRESHOLD CONTRACTS.—(1) Subject
to paragraph (2), when cost or pricing data are not re-
quired to be submitted by subsection (a) for a contract,
subcontract, or modification of a contract or subcontract,
such data may nevertheless be required to be submitted
by the head of the procuring activity, but only if the head
of the procuring activity determines that such data are
necessary for the evaluation by the agency of the reason-
ableness of the price of the contract, subcontract, or modi-
fication of a contract or subcontract. In any case in which
the head of the procuring activity requires such data to
be submitted under this subsection, the head of the pro-
curing activity shall justify in writing the reason for such
requirement.
‘‘(2) The head of the procuring activity may not re-
quire certified cost or pricing data to be submitted under
this paragraph for any contract or subcontract, or modi-
fication of a contract or subcontract, covered by the excep-
tions in subparagraph (A) or (B) of subsection (b)(1).
‘‘(3) The head of a procuring activity may not dele-
gate functions under this paragraph.
‘‘(d) LIMITATIONS ON OTHER INFORMATION.—The
Federal Acquisition Regulation shall include the following:
‘‘(1) Provisions concerning the types of infor-
mation that contracting officers may consider in de-
termining whether the price of a procurement to the
Government is fair and reasonable when certified
cost or pricing data are not required to be submitted
under this section, including appropriate information
on the prices at which the same item or similar
items have previously been sold that is adequate for
evaluating the reasonableness of the price of the pro-
posed contract or subcontract for the procurement.
‘‘(2) Reasonable limitations on requests for
sales data relating to commercial items.
‘‘(3) A requirement that a contracting officer
shall, to the maximum extent practicable, limit the
scope of any request for information relating to com-
mercial items from an offeror to only that informa-
tion that is in the form regularly maintained by the
offeror in commercial operations.
‘‘(4) A statement that any information received
relating to commercial items that is exempt from
disclosure under section 552(b) of title 5 shall not
be disclosed by the Federal Government.’’.
(2) Section 2306a of such title is further amended—
(A) by striking out subsection (h); and
(B) by redesignating subsection (i) as sub-
section (h).
(3) Section 2375 of title 10, United States Code, is
amended by striking out subsection (c).
(b) CIVILIAN
AGENCY
ACQUISITIONS.—(1) Sub-
sections (b), (c), and (d) of section 304A of the Federal
Property and Administrative Services Act of 1949 (41
U.S.C. 254b) are amended to read as follows:
‘‘(b) EXCEPTIONS.—
‘‘(1) IN GENERAL.—Submission of cost or pric-
ing data shall not be required under subsection (a)
in the case of a contract, a subcontract, or a modi-
fication of a contract or subcontract—
‘‘(A) for which the price agreed upon is
based on—
‘‘(i) adequate price competition; or
‘‘(ii) prices set by law or regulation;
‘‘(B) for the acquisition of a commercial
item; or
‘‘(C) in an exceptional case when the head
of the procuring activity, without delegation, de-
termines that the requirements of this section
may be waived and justifies in writing the rea-
sons for such determination.
‘‘(2) MODIFICATIONS OF CONTRACTS AND SUB-
CONTRACTS FOR COMMERCIAL ITEMS.—In the case
of a modification of a contract or subcontract for a
commercial item that is not covered by the exception
on the submission of cost or pricing data in para-
graph (1)(A) or (1)(B), submission of cost or pricing
data shall not be required under subsection (a) if—
‘‘(A) the contract or subcontract being
modified is a contract or subcontract for which
submission of cost or pricing data may not be
required by reason of paragraph (1)(A) or
(1)(B); and
‘‘(B) the modification would not change
the contract or subcontract, as the case may be,
from a contract or subcontract for the acquisi-
tion of a commercial item to a contract or sub-
contract for the acquisition of an item other
than a commercial item.
‘‘(c) AUTHORITY TO REQUIRE COST OR PRICING
DATA ON BELOW-THRESHOLD CONTRACTS.—(1) Subject
to paragraph (2), when cost or pricing data are not re-
quired to be submitted by subsection (a) for a contract,
subcontract, or modification of a contract or subcontract,
such data may nevertheless be required to be submitted
by the head of the procuring activity, but only if the head
of the procuring activity determines that such data are
necessary for the evaluation by the agency of the reason-
ableness of the price of the contract, subcontract, or modi-
fication of a contract or subcontract. In any case in which
the head of the procuring activity requires such data to
be submitted under this subsection, the head of the pro-
curing activity shall justify in writing the reason for such
requirement.
‘‘(2) The head of the procuring activity may not re-
quire certified cost or pricing data to be submitted under
this paragraph for any contract or subcontract, or modi-
fication of a contract or subcontract, covered by the excep-
tions in subparagraph (A) or (B) of subsection (b)(1).
‘‘(3) The head of a procuring activity may not dele-
gate the functions under this paragraph.
‘‘(d) LIMITATIONS ON OTHER INFORMATION.—The
Federal Acquisition Regulation shall include the following:
‘‘(1) Provisions concerning the types of infor-
mation that contracting officers may consider in de-
termining whether the price of a procurement to the
Government is fair and reasonable when certified
cost or pricing data are not required to be submitted
under this section, including appropriate information
on the prices at which the same item or similar
items have previously been sold that is adequate for
evaluating the reasonableness of the price of the pro-
posed contract or subcontract for the procurement.
‘‘(2) Reasonable limitations on requests for
sales data relating to commercial items.
‘‘(3) A requirement that a contracting officer
shall, to the maximum extent practicable, limit the
scope of any request for information relating to com-
mercial items from an offeror to only that informa-
tion that is in the form regularly maintained by the
offeror in commercial operations.
‘‘(4) A statement that any information received
relating to commercial items that is exempt from
disclosure under section 552(b) of title 5 shall not
be disclosed by the Federal Government.’’.
(2) Section 304A of such Act is further amended—
(A) by striking out subsection (h); and
(B) by redesignating subsection (i) as sub-
section (h).
SEC. 202. APPLICATION OF SIMPLIFIED PROCEDURES TO
COMMERCIAL ITEMS.
(a) 
ARMED
SERVICES
ACQUISITIONS.—Section
2304(e)(1) of title 10, United States Code, as added by
section 101(a), is amended by inserting after ‘‘special sim-
plified procedures’’ the following: ‘‘for purchases of com-
mercial items and’’.
(b) 
CIVILIAN
AGENCY
ACQUISITIONS.—Section
303(e)(1) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253), as added by section
101(b), is amended by inserting after ‘‘special simplified
procedures’’ the following: ‘‘for purchases of commercial
items and’’.
(c) SIMPLIFIED NOTICE.—Section 18 of the Office
of Federal Procurement Policy Act (41 U.S.C. 416) is
amended in subsection (a)(5) (as redesignated by section
101(d))—
(1) by striking out ‘‘limited’’; and
(2) by inserting before ‘‘submission’’ the follow-
ing: ‘‘issuance of solicitations and the’’.
SEC. 203. AMENDMENT TO DEFINITION OF COMMERCIAL
ITEMS.
Section 4(12)(F) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(12)(F)) is amended by
striking out ‘‘catalog’’.
SEC. 204. INAPPLICABILITY OF COST ACCOUNTING STAND-
ARDS TO CONTRACTS AND SUBCONTRACTS
FOR COMMERCIAL ITEMS.
Subparagraph (B) of section 26(f)(2) of the Office
of Federal Procurement Policy Act (41 U.S.C. 422(f)(2))
is amended—
(1) by striking out clause (i) and inserting in
lieu thereof the following:
‘‘(i) Contracts or subcontracts for the acquisi-
tion of commercial items.’’; and
(2) by striking out clause (iii).
TITLE III—ADDITIONAL REFORM
PROVISIONS
SEC. 301. GOVERNMENT RELIANCE ON THE PRIVATE
SECTOR.
(a) GOVERNMENT RELIANCE ON THE PRIVATE SEC-
TOR.—The Office of Federal Procurement Policy Act (41
U.S.C. 401 et seq.) is amended by inserting after section
16 the following new section:
‘‘SEC. 17. GOVERNMENT RELIANCE ON THE PRIVATE
SECTOR.
‘‘It has been and continues to be the policy of the
Federal Government to rely on commercial sources to sup-
ply the products and services the Federal Government
needs.’’.
(b) CLERICAL AMENDMENT.—The table of contents
for the Office of Federal Procurement Policy Act (con-
tained in section 1(b)) is amended by inserting after the
item relating to section 16 the following new item:
‘‘Sec. 17. Government reliance on the private sector.’’.
SEC. 302. ELIMINATION OF CERTAIN CERTIFICATION RE-
QUIREMENTS.
(a) ELIMINATION OF CERTAIN STATUTORY CERTIFI-
CATION REQUIREMENTS.—(1)(A) Section 2410 of title 10,
United States Code, is amended—
(i) in the heading, by striking out ‘‘: certifi-
cation’’; and
(ii) in subsection (a)—
(I) in the heading, by striking out ‘‘CER-
TIFICATION’’;
(II) by striking out ‘‘unless’’ and all that
follows through ‘‘that—’’ and inserting in lieu
thereof ‘‘unless—’’; and
(III) in paragraph (2), by striking out ‘‘to
the best of that person’s knowledge and belief’’.
(B) The item relating to section 2410 in the table
of sections at the beginning of chapter 141 of such title
is amended to read as follows:
‘‘Sec. 2410. Requests for equitable adjustment or other relief.’’.
(2) Section 2410b of title 10, United States Code,
is amended in paragraph (2) by striking out ‘‘certification
and’’.
(3) Section 1352(b)(2) of title 31, United States
Code, is amended—
(A) by striking out subparagraph (C); and
(B) by inserting ‘‘and’’ after the semicolon at
the end of subparagraph (A).
(4) Section 5152 of the Drug-Free Workplace Act of
1988 (41 U.S.C. 701) is amended—
(A) in subsection (a)(1), by striking out ‘‘has
certified to the contracting agency that it will’’ and
inserting in lieu thereof ‘‘agrees to’’;
(B) in subsection (a)(2), by striking out ‘‘con-
tract includes a certification by the individual’’ and
inserting in lieu thereof ‘‘individual agrees’’; and
(C) in subsection (b)(1)—
(i) by striking out subparagraph (A);
(ii) by redesignating subparagraph (B) as
subparagraph (A) and in that subparagraph by
striking out ‘‘such certification by failing to
carry out’’; and
(iii) by redesignating subparagraph (C) as
subparagraph (B).
(b) ELIMINATION OF CERTAIN REGULATORY CER-
TIFICATION REQUIREMENTS.—
(1) 
CURRENT
CERTIFICATION
REQUIRE-
MENTS.—Not later than 210 days after the date of
the enactment of this Act, any certification required
of contractors or offerors by the Federal Acquisition
Regulation or an executive agency procurement reg-
ulation that is not specifically imposed by statute
shall be removed by the Administrator for Federal
Procurement Policy from the Federal Acquisition
Regulation or such agency regulation unless—
(A) written justification for such certifi-
cation is provided to the Administrator by the
Federal Acquisition Regulatory Council (in the
case of a certification in the Federal Acquisition
Regulation) or the head of an executive agency
(in the case of a certification in an executive
agency procurement regulation); and
(B) the Administrator approves in writing
the retention of such certification.
(2) FUTURE CERTIFICATION REQUIREMENTS.—
(A) Section 29 of the Office of Federal Procurement
Policy Act (41 U.S.C. 425) is amended—
(i) by amending the heading to read as fol-
lows:
‘‘SEC. 22. CONTRACT CLAUSES AND CERTIFICATIONS.’’;
(ii) by inserting ‘‘(a) NONSTANDARD CON-
TRACT CLAUSES.—’’ before ‘‘The Federal Ac-
quisition’’; and
(iii) by adding at the end the following new
subsection:
‘‘(b) PROHIBITION
ON CERTIFICATION REQUIRE-
MENTS.—A requirement for a certification by a contractor
or offeror may not be included in the Federal Acquisition
Regulation or an executive agency procurement regulation
unless—
‘‘(1) the certification is specifically imposed by
statute; or
‘‘(2) written justification for such certification
is provided to the Administrator for Federal Pro-
curement Policy by the Federal Acquisition Regu-
latory Council (in the case of a certification in the
Federal Acquisition Regulation) or the head of an
executive agency (in the case of a certification in an
executive agency procurement regulation), and the
Administrator approves in writing the inclusion of
such certification.’’.
(B) The item relating to section 29 in the table
of contents for the Office of Federal Procurement
Policy Act (contained in section 1(b)) (41 U.S.C.
401 note) is amended to read as follows:
‘‘Sec. 29. Contract clauses and certifications.’’.
SEC. 303. AMENDMENT TO COMMENCEMENT AND EXPIRA-
TION OF AUTHORITY TO CONDUCT CERTAIN
TESTS OF PROCUREMENT PROCEDURES.
Subsection (j) of section 5061 of the Federal Acquisi-
tion Streamlining Act of 1994 (41 U.S.C. 413 note) is
amended to read as follows:
‘‘(j) COMMENCEMENT AND EXPIRATION OF AUTHOR-
ITY.—The authority to conduct a test under subsection
(a) in an agency and to award contracts under such a test
shall take effect on August 1, 1995, and shall expire on
August 1, 2000. Contracts entered into before such au-
thority expires in an agency pursuant to a test shall re-
main in effect, notwithstanding the expiration of the au-
thority to conduct the test under this section.’’.
SEC. 304. INTERNATIONAL COMPETITIVENESS.
(a) REPEAL OF PROVISION RELATING TO RESEARCH,
DEVELOPMENT, AND PRODUCTION COSTS.—Section 21(e)
of the Arms Export Control Act (22 U.S.C. 2761(e)) is
amended—
(1) by inserting ‘‘and’’ after the semicolon at
the end of paragraph (1)(A);
(2) by striking out subparagraph (B) of para-
graph (1);
(3) by redesignating subparagraph (C) of para-
graph (1) as subparagraph (B);
(4) by striking out paragraph (2); and
(5) by redesignating paragraph (3) as para-
graph (2).
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall be effective with respect to sales agree-
ments pursuant to sections 21 and 22 of the Arms Export
Control Act (22 U.S.C. 2761 and 2762) entered into on
or after the date of the enactment of this Act.
SEC. 305. PROCUREMENT INTEGRITY.
(a) AMENDMENT OF PROCUREMENT INTEGRITY PRO-
VISION.—Section 27 of the Office of Federal Procurement
Policy Act (41 U.S.C. 423) is amended to read as follows:
‘‘SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING
CONTRACTOR BID OR PROPOSAL INFORMA-
TION OR SOURCE SELECTION INFORMATION.
‘‘(a) PROHIBITION ON DISCLOSING PROCUREMENT
INFORMATION.—(1) A person described in paragraph (2)
shall not, other than as provided by law, knowingly and
willfully disclose contractor bid or proposal information or
source selection information before the award of a Federal
agency procurement contract to which the information
relates.
‘‘(2) Paragraph (1) applies to any person who—
‘‘(A) is a present or former officer or employee
of the United States, or a person who is acting or
has acted for or on behalf of, or who is advising or
has advised the United States with respect to, a
Federal agency procurement; and
‘‘(B) by virtue of that office, employment, or re-
lationship has or had access to contractor bid or pro-
posal information or source selection information.
‘‘(b) PROHIBITION
ON OBTAINING PROCUREMENT
INFORMATION.—A person shall not, other than as pro-
vided by law, knowingly and willfully obtain contractor bid
or proposal information or source selection information be-
fore the award of a Federal agency procurement contract
to which the information relates.
‘‘(c) PROHIBITION ON DISCLOSING OR OBTAINING
PROCUREMENT INFORMATION IN CONNECTION WITH A
PROTEST.—(1) A person shall not, other than as provided
by law, knowingly and willfully violate the terms of a pro-
tective order described in paragraph (2) by disclosing or
obtaining contractor bid or proposal information or source
selection information related to the procurement contract
concerned.
‘‘(2) Paragraph (1) applies to any protective order
issued by the Comptroller General or the board of contract
appeals of the General Services Administration in connec-
tion with a protest against the award or proposed award
of a Federal agency procurement contract.
‘‘(d) PENALTIES AND ADMINISTRATIVE ACTIONS.—
‘‘(1) CRIMINAL PENALTIES.—
‘‘(A) Whoever engages in conduct con-
stituting an offense under subsection (a), (b),
or (c) shall be imprisoned for not more than
one year or fined as provided under title 18,
United States Code, or both.
‘‘(B) Whoever engages in conduct con-
stituting an offense under subsection (a), (b),
or (c) for the purpose of either—
‘‘(i) exchanging the information cov-
ered by such subsection for anything of
value, or
‘‘(ii) obtaining or giving anyone a
competitive advantage in the award of a
Federal agency procurement contract,
shall be imprisoned for not more than five years
or fined as provided under title 18, United
States Code, or both.
‘‘(2) CIVIL PENALTIES.—The Attorney General
may bring a civil action in the appropriate United
States district court against any person who engages
in conduct constituting an offense under subsection
(a), (b), or (c). Upon proof of such conduct by a
preponderance of the evidence, the person is subject
to a civil penalty. An individual who engages in such
conduct is subject to a civil penalty of not more than
$50,000 for each violation plus twice the amount of
compensation which the individual received or of-
fered for the prohibited conduct. An organization
that engages in such conduct is subject to a civil
penalty of not more than $500,000 for each violation
plus twice the amount of compensation which the
organization received or offered for the prohibited
conduct.
‘‘(3) ADMINISTRATIVE ACTIONS.—(A) If a Fed-
eral agency receives information that a contractor or
a person has engaged in conduct constituting an of-
fense under subsection (a), (b), or (c), the Federal
agency shall consider taking one or more of the fol-
lowing actions, as appropriate:
‘‘(i) Cancellation of the Federal agency
procurement, if a contract has not yet been
awarded.
‘‘(ii) Rescission of a contract with respect
to which—
‘‘(I) the contractor or someone acting
for the contractor has been convicted for
an offense under subsection (a), (b), or (c),
or
‘‘(II) the head of the agency that
awarded the contract has determined,
based upon clear and convincing evidence,
that the contractor or someone acting for
the contractor has engaged in conduct con-
stituting such an offense.
‘‘(iii) Initiation of suspension or debarment
proceedings for the protection of the Govern-
ment in accordance with procedures in the Fed-
eral Acquisition Regulation.
‘‘(iv) Initiation of adverse personnel action,
pursuant to the procedures in chapter 75 of
title 5, United States Code, or other applicable
law or regulation.
‘‘(B) If a Federal agency rescinds a contract
pursuant to subparagraph (A)(ii), the United States
is entitled to recover, in addition to any penalty pre-
scribed by law, the amount expended under the con-
tract.
‘‘(C) For purposes of any suspension or debar-
ment proceedings initiated pursuant to subpara-
graph (A)(iii), engaging in conduct constituting an
offense under subsection (a), (b), or (c) affects the
present responsibility of a Government contractor or
subcontractor.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘contractor bid or proposal infor-
mation’ means any of the following information sub-
mitted to a Federal agency as part of or in connec-
tion with a bid or proposal to enter into a Federal
agency procurement contract, if that information has
‘‘(A) Bid prices submitted in response to a
Federal agency solicitation for sealed bids, or
lists of those bid prices before public bid open-
ing.
‘‘(B) Proposed costs or prices submitted in
response to a Federal agency solicitation, or
lists of those proposed costs or prices.
‘‘(C) Source selection plans.
‘‘(D) Technical evaluation plans.
‘‘(E) Technical evaluations of proposals.
‘‘(F) Cost or price evaluations of propos-
als.
‘‘(G) Competitive range determinations
that identify proposals that have a reasonable
chance of being selected for award of a con-
tract.
‘‘(H) Rankings of bids, proposals, or com-
petitors.
‘‘(I) The reports and evaluations of source
selection panels, boards, or advisory councils.
‘‘(J) Other information marked as ‘source
selection information’ based on a case-by-case
determination by the head of the agency, his
designee, or the contracting officer that its dis-
closure would jeopardize the integrity or suc-
cessful completion of the Federal agency pro-
curement to which the information relates.
‘‘(3) The term ‘Federal agency’ has the mean-
ing provided such term in section 3 of the Federal
Property and Administrative Services Act of 1949
(40 U.S.C. 472).
‘‘(4) The term ‘Federal agency procurement’
means the acquisition (by using competitive proce-
dures and awarding a contract) of goods or services
(including construction) from non-Federal sources
by a Federal agency using appropriated funds.
‘‘(5) The term ‘contracting officer’ means a
person who, by appointment in accordance with ap-
plicable regulations, has the authority to enter into
a Federal agency procurement contract on behalf of
the Government and to make determinations and
findings with respect to such a contract.
‘‘(6) The term ‘protest’ means a written objec-
tion by an interested party to the award or proposed
award of a Federal agency procurement contract,
pursuant to title IV of the Federal Acquisition Re-
form Act of 1995.
‘‘(f) LIMITATION ON PROTESTS.—No person may file
a protest against the award or proposed award of a Fed-
eral agency procurement contract alleging an offense
under subsection (a), (b), or (c), of this section, nor may
the Comptroller General or the board of contract appeals
of the General Services Administration consider such an
allegation in deciding a protest, unless that person re-
ported to the Federal agency responsible for the procure-
ment information that the person believed constituted evi-
dence of the offense no later than 14 days after the person
first discovered the possible offense.
‘‘(g) SAVINGS PROVISIONS.—This section does not—
‘‘(1) restrict the disclosure of information to, or
its receipt by, any person or class of persons author-
ized, in accordance with applicable agency regula-
tions or procedures, to receive that information;
‘‘(2) restrict a contractor from disclosing its
own bid or proposal information or the recipient
from receiving that information;
‘‘(3) restrict the disclosure or receipt of infor-
mation relating to a Federal agency procurement
after it has been canceled by the Federal agency be-
fore contract award unless the Federal agency plans
to resume the procurement;
‘‘(4) authorize the withholding of information
from, nor restrict its receipt by, Congress, a commit-
tee or subcommittee of Congress, the Comptroller
General, a Federal agency, or an inspector general
of a Federal agency;
‘‘(5) authorize the withholding of information
from, nor restrict its receipt by, any board of con-
tract appeals of a Federal agency or the Comptroller
General in the course of a protest against the award
or proposed award of a Federal agency procurement
contract; or
‘‘(6) limit the applicability of any requirements,
sanctions, contract penalties, and remedies estab-
lished under any other law or regulation.’’.
(b) REPEALS.—The following provisions of law are
repealed:
(1) Sections 2397, 2397a, 2397b, and 2397c of
title 10, United States Code.
(2) Section 33 of the Federal Energy Adminis-
tration Act of 1974 (15 U.S.C. 789).
(3) Section 281 of title 18, United States Code.
(4) Subsection (c) of section 32 of the Office of
Federal Procurement Policy Act (41 U.S.C. 428).
(5) The first section 19 of the Federal Non-
nuclear Energy Research and Development Act of
1974 (42 U.S.C. 5918).
(c) CLERICAL AMENDMENTS.—
(1) The table of sections at the beginning of
chapter 141 of title 10, United States Code, is
amended by striking out the items relating to sec-
tions 2397, 2397a, 2397b, and 2397c.
(2) The table of sections at the beginning of
chapter 15 of title 18, United States Code, is
amended by striking out the item relating to section
281.
(3) Section 32 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 428) is amended by re-
designating subsections (d), (e), (f), and (g) as sub-
sections (c), (d), (e), and (f), respectively.
SEC. 306. FURTHER ACQUISITION STREAMLINING PROVI-
SIONS.
(a) PURPOSE OF OFFICE OF FEDERAL PROCURE-
MENT POLICY.—(1) Section 5(a) of the Office of Federal
Procurement Policy Act (41 U.S.C. 404) is amended to
read as follows:
‘‘(a) To promote economy, efficiency, and effective-
ness in the procurement of property and services by the
executive branch of the Federal Government, there shall
be an Office of Federal Procurement Policy (hereinafter
referred to as the ‘Office’) in the Office of Management
and Budget to provide overall direction of Government-
wide procurement policies, regulations, procedures, and
forms for executive agencies.’’.
(2) Sections 2 and 3 of such Act (41 U.S.C. 401 and
402) are repealed.
(b) REPEAL OF REPORT REQUIREMENT.—Section 8
of the Office of Federal Procurement Policy Act (41
U.S.C. 407) is repealed.
(c) REPEAL OF OBSOLETE PROVISIONS.—(1) Sec-
tions 10 and 11 of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 409 and 410) are repealed.
(d) CLERICAL AMENDMENTS.—The table of contents
for the Office of Federal Procurement Policy Act (con-
tained in section 1(b)) is amended by striking out the
items relating to sections 2, 3, 8, 10, and 11.
TITLE IV—STREAMLINING OF
DISPUTE RESOLUTION
Subtitle A—General Provisions
SEC. 401. DEFINITIONS.
In this title:
(1) The term ‘‘Board’’ means the United States
Board of Contract Appeals.
(2) The term ‘‘Board judge’’ means a member
of the United States Board of Contract Appeals.
(3) The term ‘‘Chairman’’ means the Chairman
of the United States Board of Contract Appeals.
(4) The term ‘‘executive agency’’ has the mean-
ing given by section 2(2) of the Contract Disputes
Act of 1978 (41 U.S.C. 601(2)).
(5) The term ‘‘alternative means of dispute res-
olution’’ has the meaning given by section 571(3) of
title 5, United States Code.
(6) The term ‘‘protest’’ means a written objec-
tion by an interested party to any of the following:
(A) A solicitation or other request by an
executive agency for offers for a contract for
the procurement of property or services.
(B) The cancellation of such a solicitation
or other request.
(C) An award or proposed award of such
a contract.
(D) A termination or cancellation of an
award of such a contract, if the written objec-
tion contains an allegation that the termination
or cancellation is based in whole or in part on
improprieties concerning the award of the con-
tract.
(7) The term ‘‘interested party’’, with respect
to a contract or a solicitation or other request for of-
fers, means an actual or prospective bidder or
offeror whose direct economic interest would be af-
fected by the award of the contract or by failure to
award the contract.
(8) The term ‘‘prevailing party’’, with respect
to a determination of the Board under subsection
424(b) that a decision of a contracting officer vio-
lates a statute or regulation, means a party that
demonstrated such violation.
Subtitle B—Establishment of the
United States Board of Contract
Appeals
SEC. 411. ESTABLISHMENT.
There is established in the executive branch of the
Government an independent establishment to be known as
the United States Board of Contract Appeals.
SEC. 412. MEMBERSHIP.
(a) APPOINTMENT.—(1) The Board shall consist of
Board judges appointed by the Chairman, without regard
to political affiliation and solely on the basis of the profes-
sional qualifications required to perform the duties and
responsibilities of a Board judge, from a register of appli-
cants maintained by the Board.
(2) The members of the Board shall be selected and
appointed to serve in the same manner as administrative
law judges appointed pursuant to section 3105 of title 5,
United States Code, with an additional requirement that
such members shall have had not fewer than five years’
experience in public contract law.
(3) Notwithstanding paragraph (2), the following
persons shall be considered qualified to serve as Board
judges:
(A) Any full-time member of an agency board
of contract appeals serving as such on the day before
the effective date of this title.
(B) Any person serving on the day before the
effective date of this title in a position at a level of
assistant general counsel or higher with authority
delegated from the Comptroller General to decide
bid protests under subchapter V of chapter 35 of
title 31, United States Code.
(b) REMOVAL.—Members of the Board shall be sub-
ject to removal in the same manner as administrative law
judges, as provided in section 7521 of title 5, United
States Code.
(c) COMPENSATION.—Compensation for the Chair-
man and all other members of the Board shall be deter-
mined under section 5273a of title 5, United States Code.
SEC. 413. CHAIRMAN.
(a) DESIGNATION.—(1) The Chairman shall be des-
ignated by the President to serve for a term of five years.
The President shall select the Chairman from among sit-
ting Board judges each of whom has had at least five years
of service—
(A) as a member of an agency board of contract
appeals; or
(B) in a position at a level of assistant general
counsel or higher with authority delegated from the
Comptroller General to decide bid protests under
subchapter V of chapter 35 of title 31, United
States Code (as in effect on the day before the effec-
tive date of this title).
(2) A Chairman may continue to serve after the expi-
ration of the Chairman’s term until a successor has taken
office. A Chairman may be reappointed any number of
times.
(b) RESPONSIBILITIES.—The Chairman shall be re-
sponsible on behalf of the Board for the executive and ad-
ministrative 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 Chair-
man 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 response to any request that may be
made by Congress or the Office of Management and
Budget.
(4) The allocation of funds among the various
functions of the Board.
(5) The entering into and performance of such
contracts, leases, cooperative agreements, or other
similar transactions with public agencies and private
organizations and persons, and the making of such
payments, as the Chairman considers necessary or
appropriate to carry out functions vested in the
Board.
(6) 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.
(7) The acquisition, operation, and maintenance
of such automatic data processing resources as may
be needed by the Board.
(8) 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 may designate
up to four other Board judges as Vice Chairmen. The
Chairman may divide the Board into two or more divi-
sions, and, if such division is made, shall assign a Vice
Chairman to head each division. 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. 414. RULEMAKING AUTHORITY.
(a) IN GENERAL.—The Board may establish—
(1) such procedural rules and regulations as are
necessary to the exercise of its functions, including
internal rules for the assignment of cases; and
(2) statements of policy of general applicability
with respect to its functions.
(b) PROHIBITION ON REVIEW BY OTHER AGENCY OR
PERSON.—Rules and regulations established by the Board
(including forms which are a part thereof) shall not be
subject to review by any other agency or person (including
the Administrator of Information and Regulatory Affairs,
pursuant to chapter 35 of title 44, United States Code)
in advance of publication.
SEC. 415. LITIGATION AUTHORITY.
Except as provided in section 518 of title 28, United
States Code, relating to litigation before the Supreme
Court, attorneys designated by the Chairman may appear
for, and represent the Board in, any civil action brought
in connection with any function carried out by the Board.
SEC. 416. SEAL OF BOARD.
The Chairman shall cause a seal of office to be made
for the Board of such design as the Board shall approve.
Judicial notice shall be taken of such seal.
SEC. 417. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for fiscal
year 1997 and each succeeding fiscal year such sums as
may be necessary to carry out the provisions of this title
and to enable the Board to perform its functions. Funds
appropriate pursuant to this section shall remain available
until expended.
Subtitle C—Functions of United
States Board of Contract Appeals
SEC. 421. ALTERNATIVE DISPUTE RESOLUTION SERVICES.
(a) REQUIREMENT TO PROVIDE SERVICES UPON RE-
QUEST.—The Board shall provide alternative means of
dispute resolution for any disagreement regarding a con-
tract or prospective contract upon the request of all par-
ties to the disagreement.
(b) PERSONNEL QUALIFIED TO ACT.—Each Board
judge and each attorney employed by the Board shall be
considered to be qualified to act for the purpose of con-
ducting alternative means of dispute resolution under this
section.
(c) 
SERVICES
TO
BE
PROVIDED
WITHOUT
CHARGE.—Any services provided by the Board or any
Board judge or employee pursuant to this section shall be
provided without charge.
(d) RECUSAL OF CERTAIN PERSONNEL UPON RE-
QUEST.—In the event that a matter which is presented
to the Board for alternative means of dispute resolution,
pursuant to this section, later becomes the subject of for-
mal proceedings before the Board, any Board judge or em-
ployee who was involved in the alternative means shall,
if requested by any party to the formal proceeding, take
no part in that proceeding.
SEC. 422. ALTERNATIVE DISPUTE RESOLUTION OF DIS-
PUTES 
AND 
PROTESTS 
SUBMITTED 
TO
BOARD.
With reasonable promptness after the submission to
the Board of a contract dispute under section 423 or a
bid protest under section 424, a Board judge to whom the
contract dispute or protest is assigned shall request the
parties to meet with a Board judge, or an attorney em-
ployed by the Board, for the purpose of attempting to re-
solve the dispute or protest through alternative means of
dispute resolution. Formal proceedings in the appeal shall
then be suspended until such time as any party or a Board
judge to whom the dispute or protest is assigned deter-
mines that alternative means of dispute resolution are not
appropriate for resolution of the dispute or protest.
SEC. 423. CONTRACT DISPUTES.
The Board shall have jurisdiction as provided by sec-
tion 8(a) of the Contract Disputes Act of 1978 (41 U.S.C.
601–613).
SEC. 424. PROTESTS.
(a) REVIEW REQUIRED UPON REQUEST.—Upon re-
quest of an interested party in connection with any pro-
curement conducted by any executive agency, the Board
shall review, as provided in this section, any decision by
a contracting officer alleged to violate a statute or regula-
tion. The authority of the Board to conduct such review
shall include the authority to review regulations to deter-
mine their consistency with applicable statutes. A decision
or order of the Board pursuant to this section shall not
be subject to interlocutory appeal or review.
(b) STANDARD OF REVIEW.—In deciding a protest,
the Board may consider all evidence that is relevant to
the decision under protest. It shall accord a presumption
of correctness to all facts found and determinations made
by the contracting officer whose decision is being pro-
tested. The protester may rebut this presumption by show-
ing, by a preponderance of the evidence, that a finding
or determination was incorrect. The Board may find that
a decision by a contracting officer violates a statute or
regulation for any of the reasons stated in section 706(2)
of title 5, United States Code.
(c) DETERMINATION OF WHETHER TO SUSPEND AU-
THORITY
TO
CONDUCT
PROCUREMENT
IN
PROTEST
FILED BEFORE CONTRACT AWARD.—(1) When a protest
under this section is filed before the award of a contract
in a protested procurement, the Board, at the request of
an interested party and within 10 days after the submis-
sion of the protest, shall hold a hearing to determine
whether the Board should suspend the authority of the
executive agency involved (or its head) to conduct such
procurement until the Board can decide the protest.
(2) The Board shall suspend the authority of the ex-
ecutive agency (or its head) unless the agency concerned
establishes that—
(A) absent action by the Board, contract award
is likely to occur within 30 days after the hearing;
and
(B) urgent and compelling circumstances which
significantly affect interests of the United States will
not permit waiting for the decision of the Board.
(3) A suspension under paragraph (2) shall not pre-
clude the executive agency concerned from continuing the
procurement process up to but not including award of the
contract unless the Board determines such action is not
in the best interests of the United States.
(d) DETERMINATION
OF WHETHER TO SUSPEND
AUTHORITY TO CONDUCT PROCUREMENT IN PROTEST
FILED AFTER CONTRACT AWARD.—(1) If, with respect
to an award of a contract, the Board receives notice of
a protest under this section within the period described
in paragraph (2), the Board shall, at the request of an
interested party, hold a hearing to determine whether the
Board should suspend the authority of the executive agen-
cy involved (or its head) to conduct such procurement
until the Board can decide the protest.
(2) The period referred to in paragraph (1) is the
period beginning on the date on which the contract is
awarded and ending at the end of the later of—
(A) the tenth day after the date of contract
award; or
(B) the fifth day after the debriefing date of-
fered to an unsuccessful offeror for any debriefing
that is requested and, when requested, is required.
(3) The Board shall hold the requested hearing with-
in 5 days after the date of the filing of the protest or,
in the case of a request for debriefing, within 5 days after
the later of the date of the filing of the protest or the
date of the debriefing.
(4) The Board shall suspend the procurement author-
ity of the executive agency involved (or its head) to acquire
any goods or services under the contract which are not
previously delivered and accepted unless such agency es-
tablishes that urgent and compelling circumstances which
significantly affect interests of the United States will not
permit waiting for the decision of the Board.
(e) PROCEDURES.—
(1) 
PROCEEDINGS
AND
DISCOVERY.—The
Board shall conduct proceedings and allow such dis-
covery as may be required for the expeditious, fair,
and reasonable resolution of the protest. The Board
shall limit discovery to material which is relevant to
the grounds of protest or to such affirmative de-
fenses as the executive agency involved, or any inter-
venor supporting the agency, may raise.
(2) PRIORITY.—Subject to any deadlines im-
posed pursuant to section 9(a) of the Contract Dis-
putes Act of 1978 (41 U.S.C. 608(a)), the Board
shall give priority over contract disputes and alter-
native dispute services to protests filed under this
section. Except as provided in paragraph (3), the
Board shall issue its final decision within 65 days
after the date of the filing of the protest, unless the
Chairman determines that the specific and unique
circumstances of the protest require a longer period,
in which case the Board shall issue such decision
within the longer period determined by the Chair-
man. An amendment that adds a new ground of pro-
test should be resolved, to the maximum extent prac-
ticable, within the time limits established for resolu-
tion of the initial protest.
(3) THRESHOLD.—Any protest in which the an-
ticipated value of the contract award that will result
from the protested procurement, as estimated by the
executive agency involved, is less than $1,000,000
shall be considered under simplified rules of proce-
dure. These rules shall provide that discovery in
such protests shall be in writing only. Such protests
shall be decided by a single Board judge, whose deci-
sion shall be final and conclusive and shall not be set
aside except in cases of fraud. The Board shall issue
its final decision in each such protest within 35 days
after the date of the filing of the protest.
(4) CALCULATION OF TIME FOR ADR.—In cal-
culating time for purposes of paragraph (2) or (3)
of this subsection, any days during which proceed-
ings are suspended for the purpose of attempting to
resolve the protest by alternative means of dispute
resolution, up to a maximum of 20 days, shall not
be counted.
(5) DISMISSAL OF FRIVOLOUS PROTESTS.—The
Board may dismiss a protest that the Board deter-
mines is frivolous or which, on its face, does not
state a valid basis for protest.
(6) PAYMENT OF COSTS FOR FRIVOLOUS PRO-
TESTS.—(A) If the Board expressly finds that a pro-
test or a portion of a protest is frivolous or does not
state on its face a valid basis for protest, the Board
shall recommend that the protester or other inter-
ested party who joins the protest be liable to the
United States for payment of the costs described in
subparagraph (B) unless—
(i) special circumstances would make such
payment unjust; or
(ii) the protester obtains documents or
other information after the protest is filed with
the Board that establishes that the protest or
a portion of the protest is frivolous or does not
state on its face a valid basis for protest, and
the protester then promptly withdraws the pro-
test or portion of the protest.
(B) The costs referred to in subparagraph (A)
are all of the costs incurred by the United States of
reviewing the protest, or of reviewing that portion of
the protest for which the finding is made, including
the fees and other expenses (as defined in section
2412(d)(2)(A) of title 28, United States Code) in-
curred by the United States in defending the pro-
test.
(f) DECISIONS AND CORRECTIVE ACTIONS ON PRO-
TESTS.—(1) In making a decision on protests filed under
this section, the Board shall accord due weight to the goals
of economic and efficient procurement, and shall take due
account of the rule of prejudicial error.
(2) If the Board determines that a decision of a con-
tracting officer violates a statute or regulation, the Board
may order the agency (or its head) to take such corrective
action as the Board considers appropriate. Corrective ac-
tion includes recommending that the Federal agency—
(A) refrain from exercising any of its options
under the contract;
(B) recompete the contract immediately;
(C) issue a new solicitation;
(D) terminate the contract;
(E) award a contract consistent with the re-
quirements of such statute and regulation;
(F) implement any combination of recommenda-
tions under subparagraphs (A), (B), (C), (D), and
(E); or
(G) implement such other recommendations as
the Board determines to be necessary in order to
promote compliance with procurement statutes and
regulations.
(3) If the Board orders corrective action after the
contract award, the affected contract shall be presumed
valid as to all goods or services delivered and accepted
under the contract before the corrective action was
ordered.
(4) Any agreement that provides for the dismissal of
a protest and involves a direct or indirect expenditure of
appropriated funds shall be submitted to the Board and
shall be made a part of the public record (subject to any
protective order considered appropriate by the Board) be-
fore dismissal of the protest.
(g) AUTHORITY TO DECLARE ENTITLEMENT
TO
COSTS.—(1)(A) Whenever the Board determines that a
decision of a contracting officer violates a statute or regu-
lation, it may, in accordance with section 1304 of title 31,
United States Code, further declare an appropriate pre-
vailing party to be entitled to the costs of—
(i) filing and pursuing the protest, including
reasonable attorneys’ fees and consultant and expert
witness fees, and
(ii) bid and proposal preparation.
(B) No party (other than a small business concern
(within the meaning of section 3(a) of the Small Business
Act)) may be declared entitled under this paragraph to
costs for—
(i) consultants and expert witness fees that ex-
ceed the highest rate of compensation for expert wit-
nesses paid by the Federal Government, or
(ii) attorneys’ fees that exceed $150 per hour
unless the Board, on a case by case basis, deter-
mines that an increase in the cost of living or a spe-
cial factor, such as the limited availability of quali-
fied attorneys for the proceedings involved, justifies
a higher fee.
(2) Payment of amounts due from an agency under
paragraph (1) or under the terms of a settlement agree-
ment under subsection (e)(4) shall be made from the ap-
propriation made by section 1304 of title 31, United
States Code, for the payment of judgments. The executive
agency concerned shall reimburse that appropriation ac-
count out of funds available for the procurement.
(h) APPEALS.—The final decision of the Board may
be appealed as set forth in section 8(d)(1) of the Contract
Disputes Act of 1978 by the head of the executive agency
concerned and by any interested party, including inter-
ested parties who intervene in any protest filed under this
section.
(i) ADDITIONAL RELIEF.—Nothing contained in this
section shall affect the power of the Board to order any
additional relief which it is authorized to provide under
any statute or regulation.
(j) NONEXCLUSIVITY OF REMEDIES.—Nothing con-
tained in this section shall affect the right of any inter-
ested party to file a protest with the contracting agency
or to file an action in the United States Court of Federal
Claims or in a United States district court.
SEC. 425. APPLICABILITY TO CONTRACTS FOR COMMER-
CIAL ITEMS.
Notwithstanding section 34 of the Office of Federal
Procurement Policy Act (41 U.S.C. 430), the authority
conferred on the Board by this title is applicable to con-
tracts for the procurement of commercial items.
Subtitle D—Repeal of Other Stat-
utes Authorizing Administrative
Protests
SEC. 431. REPEALS.
(a) GSBCA PROVISIONS.—Subsection (f) of the
Brooks Automatic Data Processing Act (section 111 of the
Federal Property and Administrative Services Act of
1949; 40 U.S.C. 759) is repealed.
(b) GAO PROVISIONS.—Subchapter V of chapter 35
of title 31, United States Code (31 U.S.C. 3551–3556)
is repealed.
Subtitle E—Transfers and Transi-
tional, Savings, and Conforming
Provisions
SEC. 441. TRANSFER AND ALLOCATION OF APPROPRIA-
TIONS AND PERSONNEL.
(a) TRANSFER.—The personnel employed in connec-
tion with, and the assets, liabilities, contracts, property,
records, and unexpended balance of appropriations, au-
thorizations, allocations, and other funds employed, held,
used, arising from, available to, or to be made available
in connection with the functions vested by law in the
Comptroller General pursuant to subchapter V of chapter
35 of title 31, United States Code, and in the boards of
contract appeals established pursuant to section 8 of the
Contract Disputes Act of 1978 (41 U.S.C. 607) (as in ef-
fect on the day before the effective date of this Act), shall
be transferred to the Board for appropriate allocation by
the Chairman.
(b) EFFECT ON PERSONNEL.—Personnel transferred
pursuant to this title shall not be separated or reduced
in classification or compensation for one year after such
transfer, except for cause.
(c) REGULATIONS.—(1) The Board shall 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.
(2) In prescribing the regulations, the Board 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. 442. TERMINATIONS AND SAVINGS PROVISIONS.
(a) TERMINATION OF BOARDS OF CONTRACT AP-
PEALS.—On the effective date of this title, the boards of
contract appeals established pursuant to section 8 of the
Contract Disputes Act of 1978 (41 U.S.C. 607) (as in ef-
fect on the day before the effective date of this Act) shall
terminate.
(b) SAVINGS PROVISION FOR CONTRACT DISPUTE
MATTERS PENDING BEFORE BOARDS.—The provisions of
this title shall not affect any proceedings (other than bid
protests pending before the board of contract appeals of
the General Services Administration) pending on the effec-
tive date of this Act before any board of contract appeals
described in subsection (a). Such proceedings shall be con-
tinued by the Board, and orders which were issued in any
such proceeding by any board of contract appeals shall
continue in effect until modified, terminated, superseded,
or revoked by the Board, by a court of competent jurisdic-
tion, or by operation of law.
(c) BID PROTEST TRANSITION PROVISIONS.—(1) No
protest may be submitted to the Comptroller General pur-
suant to section 3553(a) of title 31, United States Code,
or to the board of contract appeals for the General Serv-
ices Administration pursuant to the Brooks Automatic
Data Processing Act (40 U.S.C. 759) on or after the effec-
tive date of this Act.
(2) The provisions repealed by section 401 shall con-
tinue to apply to proceedings pending on the effective date
of this title before the board of contract appeals of the
General Services Administration and the Comptroller Gen-
eral pursuant to those provisions, until the board or the
Comptroller General determines such proceedings have
been completed.
SEC. 443. CONTRACT DISPUTE AUTHORITY OF BOARD.
(a) Section 2 of the Contract Disputes Act of 1978
(41 U.S.C. 601) is amended by striking out paragraph (6)
and inserting in lieu thereof the following:
‘‘(6) the term ‘Board’ means the United States
Board of Contract Appeals; and’’.
(b) Section 6(c) of the Contract Disputes Act of 1978
(41 U.S.C. 605(c)) is amended—
(1) in paragraph (4)—
(A) by striking out ‘‘the agency board of
contract appeals’’ and inserting in lieu thereof
‘‘the United States Board of Contract Ap-
peals’’; and
(B) by striking out ‘‘the board’’ and insert-
ing in lieu thereof ‘‘the Board’’; and
(2) in paragraph (6)—
(A) by striking out ‘‘an agency board of
contract appeals’’ and inserting in lieu thereof
‘‘the United States Board of Contract Ap-
peals’’; and
(B) by striking out ‘‘agency board’’ and in-
serting in lieu thereof ‘‘the Board’’.
(c) Section 7 of the Contract Disputes Act of 1978
(41 U.S.C. 606) is amended by striking out ‘‘an agency
board of contract appeals’’ and inserting in lieu thereof
‘‘the United States Board of Contract Appeals’’.
(d) Section 8 of the Contract Disputes Act of 1978
(41 U.S.C. 607) is amended—
(1) by amending the heading to read as follows:
‘‘UNITED STATES BOARD OF CONTRACT APPEALS’’;
(2) by striking out subsections (a), (b), and (c);
(3) in subsection (d)—
(A) by striking out the first sentence and
inserting in lieu thereof the following:
‘‘The United States Board of Contract Appeals shall have
jurisdiction to decide any appeal from a decision of a con-
tracting officer of any executive agency relative to a con-
tract made by that agency.’’; and
(B) in the second sentence, by striking out
‘‘the agency board’’ and inserting in lieu thereof
‘‘the Board’’;
(4) in subsection (e), by striking out ‘‘An agen-
cy board’’ and inserting in lieu thereof ‘‘The United
States Board of Contract Appeals’’;
(5) in subsection (f), by striking out ‘‘each
agency board’’ and inserting in lieu thereof ‘‘the
United States Board of Contract Appeals’’;
(6) in subsection (g)—
(A) in the first sentence of paragraph (1),
by striking out ‘‘an agency board of contract
appeals’’ and inserting in lieu thereof ‘‘the
United States Board of Contract Appeals’’;
(B) by striking out paragraph (2); and
(C) by redesignating paragraph (3) as
paragraph (2);
(7) by striking out subsections (h) and (i); and
(8) by redesignating subsections (d), (e), (f),
and (g) (as amended) as subsections (a), (b), (c),
and (d), respectively.
(e) Section 9 of the Contract Disputes Act of 1978
(41 U.S.C. 608) is amended—
(1) in subsection (a), by striking out ‘‘each
agency board’’ and inserting in lieu thereof ‘‘the
United States Board of Contract Appeals’’; and
(2) in subsection (b), by striking out ‘‘the agen-
cy board’’ and inserting in lieu thereof ‘‘the Board’’.
(f) Section 10 of the Contract Disputes Act of 1978
(41 U.S.C. 609) is amended—
(1) in subsection (a)—
(A) in the first sentence of paragraph
(1)—
(i) by striking out ‘‘Except as pro-
vided in paragraph (2), and in’’ and insert-
ing in lieu thereof ‘‘In’’; and
(ii) by striking out ‘‘an agency board’’
and inserting in lieu thereof ‘‘the United
States Board of Contract Appeals’’;
(B) by striking out paragraph (2); and
(C) by redesignating paragraph (3) as
paragraph (2), and in that paragraph, by strik-
ing out ‘‘or (2)’’;
(2) in subsection (b), by striking out ‘‘any
agency board’’ and ‘‘the agency board’’ and inserting
in lieu of each ‘‘the Board’’;
(3) in subsection (c), by striking out ‘‘an agen-
cy board’’ and ‘‘the agency board’’ and inserting in
lieu of each ‘‘the Board’’; and
(4) in subsection (d), by striking out ‘‘one or
more agency boards’’ and ‘‘or among the agency
boards involved’’ and inserting in lieu of each ‘‘the
Board’’.
(g) Section 11 of the Contract Disputes Act of 1978
(41 U.S.C. 610) is amended—
(1) in the first sentence, by striking out ‘‘an
agency board of contract appeals’’ and inserting in
lieu thereof ‘‘the United States Board of Contract
Appeals’’; and
(2) in the second sentence, by striking out ‘‘the
agency board through the Attorney General; or upon
application by the board of contract appeals of the
Tennessee Valley Authority’’ and inserting in lieu
thereof ‘‘the Board’’.
(h) Section 13 of the Contract Disputes Act of 1978
(41 U.S.C. 612) is amended—
(1) in subsection (b), by striking out ‘‘an agen-
cy board of contract appeals’’ and inserting in lieu
thereof ‘‘the United States Board of Contract Ap-
peals’’; and
(2) in subsection (d)(2), by striking out ‘‘by the
board of contract appeals for’’ and inserting in lieu
thereof ‘‘by the Board from’’.
SEC. 444. REFERENCES TO AGENCY BOARDS OF CONTRACT
APPEALS.
Any reference to an agency 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 United States Board of Contract Appeals.
SEC. 445. CONFORMING AMENDMENTS.
(a) TITLE 5.—Section 5372a of title 5, United States
Code, is amended—
(1) in subsection (a)(1), by striking out ‘‘an
agency board of contract appeals appointed under
section 8 of the Contract Disputes Act of 1978’’ and
inserting in lieu thereof ‘‘the United States Board of
Contract Appeals’’;
(2) in subsection (a)(2), by striking out ‘‘an
agency board of contract appeals established pursu-
ant to section 8 of the Contract Disputes Act of
1978’’ and inserting in lieu thereof ‘‘the United
States Board of Contract Appeals’’; and
(3) in subsection (b), by striking out ‘‘an ap-
peals board’’ each place it appears and inserting in
lieu thereof ‘‘the appeals board’’.
(b) TITLE 10.—(1) Section 2305(e) of title 10,
United States Code, is amended—
(A) in paragraph (1), by striking out ‘‘sub-
chapter V of chapter 35 of title 31’’ and inserting
in lieu thereof ‘‘title IV of the Federal Acquisition
Reform Act of 1995’’; and
(B) by striking out paragraph (3).
(2) Section 2305(f) of such title is amended—
(A) in paragraph (1), by striking out ‘‘in sub-
paragraphs (A) through (F) of subsection (b)(1) of
section 3554 of title 31’’ and inserting in lieu there-
of ‘‘section 424(f)(2) of the Federal Acquisition Re-
form Act of 1995’’; and
(B) in paragraph (2), by striking out ‘‘para-
graph (1) of section 3554(c) of title 31’’ and insert-
ing in lieu thereof ‘‘section 424(g)(1)(A) of the Fed-
eral Acquisition Reform Act of 1995’’.
(c) FEDERAL
PROPERTY
AND
ADMINISTRATIVE
SERVICES ACT OF 1949.—(1) Section 303B(h) of the
Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253b(h)) is amended—
(A) in paragraph (1), by striking out ‘‘sub-
chapter V of chapter 35 of title 31’’ and inserting
in lieu thereof ‘‘title IV of the Federal Acquisition
Reform Act of 1995’’; and
(B) by striking out paragraph (3).
(2) Section 303B(i) of such Act (41 U.S.C. 253b(i))
is amended—
(A) in paragraph (1), by striking out ‘‘in sub-
paragraphs (A) through (F) of subsection (b)(1) of
section 3554 of title 31’’ and inserting in lieu there-
of ‘‘section 424(f)(2) of the Federal Acquisition Re-
form Act of 1995’’; and
(B) in paragraph (2), by striking out ‘‘para-
graph (1) of section 3554(c) of title 31’’ and insert-
ing in lieu thereof ‘‘section 424(g)(1)(A) of the Fed-
eral Acquisition Reform Act of 1995’’.
Subtitle F—Effective Date; Interim
Appointment and Rules
SEC. 451. EFFECTIVE DATE.
This title shall take effect on October 1, 1996.
SEC. 452. INTERIM APPOINTMENT.
The Board judge serving as chairman of the board
of contract appeals of the General Services Administration
on the date of the enactment of this Act shall serve as
Chairman during the two-year period beginning on the ef-
fective date of this title, unless such individual resigns
such position or the position otherwise becomes vacant be-
fore the expiration of such period. The authority vested
in the President by section 413 shall take effect upon the
expiration of such two-year period or on the date such po-
sition is vacated, whichever occurs earlier.
SEC. 453. INTERIM RULES.
(a) RULES OF PROCEDURE.—Until such date as the
Board promulgates rules of procedure, the rules of proce-
dure of the board of contract appeals of the General Serv-
ices Administration, as in effect on the effective date of
this Act, shall be the rules of procedure of the Board.
(b) RULES REGARDING BOARD JUDGES.—Until such
date as the Board promulgates rules governing the estab-
to such a solicitation or proposal, on or after the date de-
scribed in paragraph (3).
(2) An amendment made by this Act shall also apply,
to the extent and in the manner prescribed in the final
regulations promulgated pursuant to section 502 to imple-
ment such amendment, with respect to any matter related
to—
(A) a contract that is in effect on the date de-
scribed in paragraph (3);
(B) an offer under consideration on the date
described in paragraph (3); or
(C) any other proceeding or action that is ongo-
ing on the date described in paragraph (3).
(3) The date referred to in paragraphs (1) and (2)
is the date specified in such final regulations. The date
so specified shall be October 1, 1996, or any earlier date
that is not within 30 days after the date on which such
final regulations are published.
SEC. 502. IMPLEMENTING REGULATIONS.
(a) PROPOSED REVISIONS.—Proposed revisions to
the Federal Acquisition Regulation and such other pro-
posed regulations (or revisions to existing regulations) as
may be necessary to implement this Act shall be published
in the Federal Register not later than 210 days after the
date of the enactment of this Act.
(b) PUBLIC COMMENT.—The proposed regulations
described in subsection (a) shall be made available for
public comment for a period of not less than 60 days.
(c) FINAL REGULATIONS.—Final regulations shall be
published in the Federal Register not later than 330 days
after the date of enactment of this Act.
(d) MODIFICATIONS.—Final regulations promulgated
pursuant to this section to implement an amendment
made by this Act may provide for modification of an exist-
ing contract without consideration upon the request of the
contractor.
(e) SAVINGS PROVISIONS.—(1) Nothing in this Act
shall be construed to affect the validity of any action taken
or any contract entered into before the date specified in
the regulations pursuant to section 501(b)(3) except to the
extent and in the manner prescribed in such regulations.
(2) Except as specifically provided in this Act, noth-
ing in this Act shall be construed to require the renegoti-
ation or modification of contracts in existence on the date
of the enactment of this Act.
(3) Except as otherwise provided in this Act, a law
amended by this Act shall continue to be applied according
to the provisions thereof as such law was in effect on the
day before the date of the enactment of this Act until—
(A) the date specified in final regulations imple-
menting the amendment of that law (as promulgated
pursuant to this section); or
(B) if no such date is specified in regulations,
October 1, 1996.
Æ
HR 1670 IH——2
HR 1670 IH——3
HR 1670 IH——4
HR 1670 IH——5
HR 1670 IH——6
HR 1670 IH——7